Document:

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                                CREDIT AGREEMENT

                                 by and between

             GEL TECH, L.L.C., an Arizona limited liability company

                                       and

                 IMPERIAL BANK, a California banking corporation

                                   Dated as of

                                January 11, 2000

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                                TABLE OF CONTENTS

                                                                            Page
                                                                            ----

RECITALS ...................................................................   1

ARTICLE 1      DEFINITION OF TERMS .........................................   2
     1.1       Definitions .................................................   2
     1.2       References ..................................................   8
     1.3       Accounting Terms ............................................   8

ARTICLE 2      THE RLC .....................................................   9
     2.1       RLC Commitment ..............................................   9
     2.2       Revolving Line of Credit ....................................   9
     2.3       RLC Payments ................................................   9
     2.4       Excess Balance Payment ......................................  10
     2.5       Conditions ..................................................  10
     2.6       Other RLC Advances by Lender ................................  10
     2.7       Assignment ..................................................  10

ARTICLE 3      PAYMENTS AND FEES PROVISIONS ................................  12
     3.1       Payments ....................................................  12
     3.2 (a)   RLC Non-Use Fee .............................................  12
         (b)   RLC Fee .....................................................  13
     3.3       Computations ................................................  13
     3.4       Maintenance of Accounts .....................................  13

ARTICLE 4      SECURITY ....................................................  14
     4.1       Security ....................................................  14
     4.2       Security Documents ..........................................  14

ARTICLE 5      CONDITIONS PRECEDENT ........................................  15
     5.1       Initial or Any Subsequent Advance ...........................  15
     5.2       No Event of Default .........................................  16
     5.3       No Material Adverse Effect ..................................  16
     5.4       Representations and Warranties ..............................  16

ARTICLE 6      REPRESENTATIONS AND WARRANTIES ..............................  17
     6.1       Recitals ....................................................  17
     6.2       Organization and Good Standing ..............................  17
     6.3       Authorization and Power .....................................  17
     6.4       Security Documents ..........................................  17
     6.5       No Conflicts or Consents ....................................  17
     6.6       No Litigation ...............................................  17

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     6.7       Financial Condition .........................................  18
     6.8       Taxes .......................................................  18
     6.9       No Stock Purchase ...........................................  18
     6.10      Advances ....................................................  18
     6.11      Enforceable Obligations .....................................  18
     6.12      No Default ..................................................  18
     6.13      Significant Debt Agreements .................................  18
     6.14      ERISA .......................................................  19
     6.15      Compliance with Law .........................................  19
     6.16      Solvent .....................................................  19
     6.17      Investment Borrower Act .....................................  19
     6.18      Title .......................................................  19
     6.19      Survival of Representations, Etc. ...........................  19
     6.20      Environmental Matters .......................................  19
     6.21      Licenses, Tradenames ........................................  19
     6.22      Year 2000 Compliance ........................................  20

ARTICLE 7      AFFIRMATIVE COVENANTS .......................................  21
     7.1       Financial Statements, Reports and Documents .................  21
     7.2       Maintenance of Existence and Rights; Conduct of
                 Business; Management ......................................  22
     7.3       Operations and Properties ...................................  22
     7.4       Authorizations and Approvals ................................  22
     7.5       Compliance with Law .........................................  22
     7.6       Payment of Taxes and Other Indebtedness .....................  22
     7.7       Compliance with Significant Debt Agreements and
                 Other Agreements ..........................................  22
     7.8       Compliance with Credit Documents ............................  22
     7.9       Notice of Default ...........................................  23
     7.10      Other Notices ...............................................  23
     7.11      Books and Records; Access; Audits ...........................  23
     7.12      ERISA Compliance ............................................  23
     7.13      Further Assurances ..........................................  23
     7.14      Insurance ...................................................  24
     7.15      Year 2000 Compliance ........................................  24
     7.16      Deposit Accounts ............................................  25

ARTICLE 8      NEGATIVE COVENANTS ..........................................  26
     8.1       Existence ...................................................  26
     8.2       Amendments to Organizational Documents ......................  26
     8.3       Margin Stock ................................................  26
     8.4       Distributions ...............................................  26
     8.5       Liens .......................................................  26
     8.6       Transfer Collateral .........................................  26
     8.7       Merger; Sale of Assets ......................................  26

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     8.8       Indebtedness ................................................  26
     8.9       Financial Covenants .........................................  27

ARTICLE 9      EVENTS OF DEFAULT ...........................................  28
     9.1       Events of Default ...........................................  28
     9.2       Remedies Upon Event of Default ..............................  30
     9.3       Performance by Lender .......................................  31

ARTICLE 10     MISCELLANEOUS ...............................................  32
     10.1      Modification ................................................  32
     10.2      Waiver ......................................................  32
     10.3      Payment of Expenses .........................................  32
     10.4      Notices .....................................................  32
     10.5      Governing Law; Jurisdiction, Venue; Waiver of Jury Trial ....  33
     10.6      Invalid Provisions ..........................................  33
     10.7      Binding Effect ..............................................  34
     10.8      Entirety ....................................................  34
     10.9      Headings ....................................................  34
     10.10     Survival ....................................................  34
     10.11     No Third Party Beneficiary ..................................  34
     10.12     Time ........................................................  34
     10.13     Reference Provision .........................................  34
     10.14     Schedules and Exhibits Incorporated .........................  36
     10.15     Counterparts ................................................  36
     10.16     Participations ..............................................  36

EXHIBIT "A"    Form of Advance  Notice
EXHIBIT "B"    Form of Compliance Certificate
EXHIBIT "C"    Form of Borrowing Base Certificate
EXHIBIT "D"    Form of Waiver/Release of Lien Rights

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                                CREDIT AGREEMENT

     BY THIS CREDIT  AGREEMENT  (together with any amendments or  modifications,
the "Credit  Agreement"),  entered into as of this 11th day of January,  2000 by
and between GEL TECH, L.L.C., an Arizona limited liability company ("Borrower"),
and  IMPERIAL  BANK,  a  California  banking  corporation  (the  "Lender"),   in
consideration  of the mutual  promises  herein  contained and for other valuable
consideration, the parties hereto do hereby agree as follows:

                                    RECITALS

     A. Borrower has  requested  that Lender  establish the following  financial
accommodations:

          (1) A revolving line of credit  facility  (the "RLC") in the principal
amount of ONE  MILLION  AND NO/100  DOLLARS  ($1,000,000.00)  for the purpose of
funding Borrower's short-term working capital.

     B. As a condition for extending such financial  accommodations,  Lender has
required that Borrower enter into this Credit Agreement,  establishing the terms
and conditions thereof.

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                                    ARTICLE 1

                               DEFINITION OF TERMS

     1.1.  Definitions.  For the purposes of this Credit  Agreement,  unless the
context  otherwise  requires,  the  following  terms  shall have the  respective
meanings assigned to them in this Article 1 or in the Section hereof referred to
below:

          "Advance" means an RLC Advance.

          "Affiliate"  of  any  Person  means  any  Person  which,  directly  or
indirectly, Controls or is Controlled by such Person.

          "Authorized  Manager"  means one or more  managers  of  Borrower  duly
authorized  (and so certified to Lender by the member of Borrower  pursuant to a
borrowing authorization from time to time satisfactory to Lender in the exercise
of Lender's reasonable discretion),  acting alone, to request Advances under the
provisions  of  this  Credit  Agreement  and  execute  and  deliver   documents,
instruments,  agreements,  reports,  statements and  certificates  in connection
herewith.

          "Banking  Day" means a day of the year on which banks are not required
or authorized to close in Inglewood, California and/or Phoenix, Arizona.

          "Borrower": See the Preamble hereto.

          "Borrowing  Base" means the sum of (i) the  Eligible  Accounts  Amount
plus (ii) the Eligible Deposit Amount.

          "Borrowing Base Certificate" means a certificate  substantially in the
form attached hereto as Exhibit C.

          "Closing Date" means the date of delivery of this Credit Agreement.

          "Code" means the Internal Revenue Code of 1986, as amended.

          "Collateral" means all property subject to the Security Documents.

          "Control"  when used  with  respect  to any  Person  means the  power,
directly  or  indirectly,  to direct the  management  policies  of such  Person,
whether  through the ownership of voting  securities,  by contract or otherwise;
and the terms  "controlling" and "controlled"  have meanings  correlative to the
foregoing.

          "Controlled Group" means,  severally and collectively,  the members of
the group  controlling,  controlled  by and/or in common  control  of  Borrower,
within the meaning of Section 4001(b) of ERISA.

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          "Credit Agreement": See the Preamble hereto.

          "Credit  Documents" means this Credit  Agreement,  the Note (including
any renewals,  extensions and refundings thereof),  the Security Documents,  the
Triparty  Agreement and any written  agreements,  certificates or documents (and
with respect to this Credit  Agreement  and such other  written  agreements  and
documents,  any  amendments or  supplements  thereto or  modifications  thereof)
executed or delivered pursuant to the terms of this Credit Agreement.

          "Default  Rate" means at any time five percent (5%) per annum over the
then applicable interest rate.

          "Dollars"  and the sign "$" mean lawful  currency of the United States
of America.

          "Eligible  Accounts"  means those  accounts  receivable  of  Borrower,
except Eligible Accounts shall not include any of the following:

               (a) Account  balances over ninety (90) calendar days from invoice
          date.

               (b)  Accounts  with  respect  to which the  account  debtor is an
          officer, director,  shareholder,  employee, subsidiary or affiliate of
          Borrower.

               (c)  Accounts  with  respect to which 25% or more of the  account
          debtor's  total  accounts or  obligations  outstanding to Borrower are
          more than 90 calendar days from invoice date.

               (d)  As  to   accounts   representing   more  than  the   Maximum
          Concentration  Percentage of  Borrower's  total  accounts  receivable,
          outstanding at any time the balance in excess of Maximum Concentration
          Percentage   is  not  eligible,   where  the  "Maximum   Concentration
          Percentage" means 40% as to Borrower's accounts with Walgreens, Kmart,
          McKesson  Drug  and  Costco,  and  20% as to  all  other  accounts  of
          Borrower.

               (e) Accounts with respect to  international  transactions  unless
          insured  by an  insurance  company  acceptable  to  Lender in its sole
          discretion  or covered by letters of credit  issued or  confirmed by a
          bank acceptable to Lender or unless otherwise acceptable to Lender, in
          its sole and absolute discretion.

               (f) Credit  balances  greater than ninety (90) calendar days from
          invoice date.

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               (g)  Accounts  where the account  debtor is a seller to Borrower,
          whereby a  potential  offset  (contra)  exists,  to the  extent of the
          offset.

               (h) Consignment or guaranteed sales.

               (i) Bill and hold accounts.

               (j) Contracts receivable.

               (k) Progress billings.

          "Eligible  Accounts  Amount"  means an amount  equal to fifty  percent
(50.0%) of the Eligible Accounts.

          "Eligible Deposit Amount" means an amount equal to one hundred percent
(100.0%) of all cash of Borrower on deposit with Lender plus all funds  invested
by Borrower with Lender.

          "ERISA" means the Employee  Retirement Income Security Act of 1974, as
amended,  together  with all final and  permanent  regulations  issued  pursuant
thereto.  References  herein to sections and  subsections of ERISA are deemed to
refer to any successor or substitute provisions therefor.

          "Event of Default": See Section 9.1 hereof.

          "Exchange Act" means the Securities Exchange Act of 1934.

          "Financial Covenants": See Section 8.9 hereof.

          "GAAP"  means  those  generally  accepted  accounting  principles  and
practices  which are  recognized as such by the American  Institute of Certified
Public  Accountants  acting  through its Accounting  Principles  Board or by the
Financial  Accounting  Standards  Board or through other  appropriate  boards or
committees thereof and which are consistently  applied for all periods after the
date hereof so as to properly reflect the financial  condition,  and the results
of operations  and changes in the  financial  position,  of Borrower,  including
without limitation  accounting rules promulgated  pursuant to Regulations SX and
SK, except that any accounting  principle or practice  required to be changed by
the said Accounting Principles Board or Financial Accounting Standards Board (or
other appropriate board or committee of the said Boards) in order to continue as
a generally accepted accounting principle or practice may be so changed.

          "Governmental  Authority"  means  any  government  (or  any  political
subdivision  or  jurisdiction   thereof),   court,   bureau,   agency  or  other
governmental authority having jurisdiction over Borrower or any of its business,
operations or properties.

                                      -4-
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          "Indebtedness"  of a  Person  means  each  of the  following  (without
duplication):  (a) obligations of that Person to any other Person for payment of
borrowed  money,  (b) capital lease  obligations,  (c) notes and drafts drawn or
accepted by that Person payable to any other Person, whether or not representing
obligations  for borrowed  money (but without  duplication of  indebtedness  for
borrowed  money),  (d) any  obligation  for the  purchase  price of property the
payment of which is deferred  for more than one year or  evidenced  by a note or
equivalent instrument,  (e) guarantees of Indebtedness of third parties, and (f)
a recourse or nonrecourse payment obligation of any other Person that is secured
by a Lien on any  property  of the first  Person,  whether or not assumed by the
first  Person,  up to the fair market value (from time to time) of such property
(absent  manifest  evidence  to the  contrary,  the  fair  market  value of such
property  shall be the  amount  determined  under GAAP for  financial  reporting
purposes).

          "IP Security Agreement": See Section 4.1(b) hereof.

          "Lender": See the Preamble hereto.

          "Lien" means any lien, mortgage,  security interest, tax lien, pledge,
encumbrance,  conditional  sale or title  retention  arrangement,  or any  other
interest in property  designed to secure the repayment of  Indebtedness  whether
arising by agreement or under any statute or law, or otherwise.

          "Liquidity  Percentage" means at any time Borrower's  Eligible Deposit
Amount as a percentage of the RLC Balance.

          "Loan" or "Loans" means the RLC.

          "Material  Adverse  Effect" means any  circumstance or event which (i)
has any  material  adverse  effect upon the  validity or  enforceability  of any
Credit Document,  (ii) materially impairs the ability of Borrower to fulfill its
obligations under the Credit  Documents,  or (iii) causes an Event of Default or
any event which,  with notice or lapse of time or both, would become an Event of
Default.

          "Maturity Date" means the RLC Maturity Date.

          "Maximum RLC Loan Amount": See Section 2.1 hereof.

          "Net  Income"  means,  for any period,  the net income of Borrower for
such period, determined in accordance with GAAP.

          "Note" or "Notes" means the RLC Note.

          "Obligation"  means all present and future  indebtedness,  obligations
and liabilities of Borrower to Lender, and all renewals and extensions  thereof,
or any part thereof, arising pursuant to this Credit Agreement or represented by
the  Note,  including  without  limitation  the Loan and all  interest  accruing

                                      -5-
<PAGE>
thereon,  and attorneys' fees incurred in the enforcement or collection thereof,
regardless of whether such indebtedness, obligations and liabilities are direct,
indirect, fixed, contingent,  joint, several or joint and several; together with
all indebtedness,  obligations and liabilities of Borrower  evidenced or arising
pursuant to any of the other Credit  Documents,  and all renewals and extensions
thereof, or part thereof.

          "Payment Date" means the first day of each month, provided that if any
such  day is not a  Banking  Day,  then  such  Payment  Date  shall  be the next
successive Banking Day.

          "PBGC"  means  the  Pension  Benefit  Guaranty  Corporation,  and  any
successor  to  all  or  substantially   all  of  the  Pension  Benefit  Guaranty
Corporation's functions under ERISA.

          "Permitted Liens" means:

               (a) Liens in Lender's favor.

               (b) Liens for taxes not delinquent.

               (c) Liens  resulting  from  purchase  money  financing  as to the
          personal property so financed and any sales proceeds therefrom.

          "Person"  includes an individual,  a corporation,  a joint venture,  a
partnership,   a  trust,  a  limited   liability   company,   an  unincorporated
organization or a government or any agency or political subdivision thereof.

          "Plan" means an employee defined benefit plan or other plan maintained
by  Borrower  for  employees  of Borrower  and covered by Title IV of ERISA,  or
subject to the minimum funding standards under Section 412 of the Code.

          "Prime Rate" means the interest rate per annum  publicly  announced by
Lender,  or its successors,  as its "prime rate" as in effect from time to time.
Borrower  acknowledges that the Prime Rate is not necessarily the best or lowest
rate  offered by Lender and Lender may lend to its  customers  at rates that are
at, above or below its Prime Rate.

          "Quarterly  End Date" means each March 31, June 30,  September  30 and
December 31.

          "Regulation  U"  means  Regulation  U  promulgated  by  the  Board  of
Governors  of the  Federal  Reserve  System,  12 C.F.R.  Part 221,  or any other
regulation hereafter promulgated by said Board to replace the prior Regulation U
and having substantially the same function.

          "Reportable  Event"  means  any  "reportable  event" as  described  in
Section  4043(b)  of ERISA  with  respect  to which the  thirty  (30) day notice
requirement has not been waived by the PBGC.

                                      -6-
<PAGE>
          "RLC": See Recital A hereof.

          "RLC Advance" means a disbursement of the proceeds of the RLC.

          "RLC Balance" means the aggregate  outstanding principal amount of all
RLC Advances.

          "RLC Commitment" means One Million And No/100 Dollars ($1,000,000.00).

          "RLC Fee": See Section 3.2(b) hereof.

          "RLC Maturity Date" means January 10, 2001.

          "RLC Non-Use Fee": See Section 3.2(a) hereof.

          "RLC Note" means that Revolving  Promissory Note of even date herewith
in the amount of the RLC Commitment, executed by Borrower and delivered pursuant
to the terms of this Credit Agreement,  together with any renewals,  extensions,
modifications or replacements thereof.

          "Security Agreement": See Section 4.1(a) hereof.

          "Security Documents": See Section 4.2 hereof.

          "Significant  Debt  Agreement"  means all documents,  instruments  and
agreements   executed  by  Borrower,   evidencing,   securing  or  ensuring  any
Indebtedness of Borrower or any guaranty in excess of $100,000.00 in outstanding
principal (or principal equivalent) amount.

          "Subordinated Debt" means Indebtedness of Borrower subordinated to the
payment of the Obligation pursuant to written agreements acceptable to Lender.

          "Subsidiary"  means  any  corporation  of which  more  than 50% of the
outstanding  shares of capital stock having  general voting power under ordinary
circumstances to elect a majority of the board of directors of such corporation,
irrespective  of whether or not at the time stock of any other  class or classes
shall  have or  might  have  voting  power by  reason  of the  happening  of any
contingency, is at the time directly or indirectly owned by the Borrower, by the
Borrower  and  one  or  more  other  Subsidiaries,  or  by  one  or  more  other
Subsidiaries.

          "Triparty Agreement": See Section 5.1(k) hereof.

          "Variable  Rate"  means the rate per  annum  equal to the sum of three
percent  (3.0%) and the Prime Rate per annum as in effect from time to time. The
Variable Rate will change on each day that the "Prime Rate" changes.

                                      -7-
<PAGE>
          "Variable  Rate Advance"  means an Advance that bears  interest at the
Variable Rate.

     1.2 References.  Capitalized terms shall be equally  applicable to both the
singular  and the  plural  forms of the terms  therein  defined.  References  to
"Credit Agreement," "this Agreement," "herein," "hereof,"  "hereunder," or other
like words mean this  Credit  Agreement  as amended,  supplemented,  restated or
otherwise modified and in effect from time to time.

     1.3 Accounting Terms.  Except as expressly provided to the contrary herein,
all  accounting  terms shall be interpret ed and all  accounting  determinations
shall be made in accordance with GAAP,  except as otherwise  specifically  provi
ded for  herein.  To the extent any change in GAAP  affects any  computation  or
determination  required  to be mad e pursuant  to this  Credit  Agreement,  such
computation  or  determination  shall be made as if such  change in GAAP had not
occurred  unless  Borrower and Lender agree in writing on an  adjustment to such
computation or determination t o account for such change in GAAP.

                                      -8-
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                                    ARTICLE 2

                                     THE RLC

     2.1 RLC  Commitment.  Subject to the  conditions  herein set forth,  Lender
agrees to make the RLC available to or for the benefit of Borrower, and Borrower
agrees to draw upon the RLC,  in the  manner  and upon the terms and  conditions
herein expressed, amounts that shall not exceed the lesser of the following (the
"Maximum RLC Loan Amount"):

          (a) The RLC Commitment.

          (b) The Borrowing Base.

     2.2 Revolving Line of Credit.

          (a)  Subject  to the terms  and  conditions  set forth in this  Credit
Agreement,  the RLC  shall be a  revolving  line of  credit,  against  which RLC
Advances may be made to Borrower,  repaid by Borrower and new RLC Advances  made
to Borrower, as Borrower may request,  provided that (i) no RLC Advance shall be
made if an Event of Default  shall be  continuing,  (ii) no RLC Advance shall be
made that would cause the outstanding principal balance of the RLC to exceed the
Maximum RLC Loan Amount,  and (iii) no RLC Advance shall be made on or after the
RLC Maturity Date.

          (b) The RLC shall be evidenced by the RLC Note.

     2.3 RLC Payments. The RLC shall bear interest and be payable to Lender upon
the following terms and conditions:

          (a) Interest shall accrue on the unpaid principal of an RLC Advance at
the Variable Rate.

          (b) All interest  shall be computed on the basis of a 360-day year and
accrue on a daily basis for the actual number of days  elapsed.  All accrued and
unpaid interest  through the end of the preceding month shall be due and payable
on each Payment Date.

          (c) The  entire  unpaid  principal  balance,  all  accrued  and unpaid
interest,  and all other  amounts  payable  under the RLC Note  shall be due and
payable in full on the RLC Maturity Date.

          (d) Each request for an RLC Advance shall be substantially in the form
attached hereto as Exhibit "A" from an Authorized Officer and

                                      -9-
<PAGE>
shall,  in  addition to  complying  with the other  requirements  in this Credit
Agreement, specify the date and amount of the requested RLC Advance.

          (e) If any payment of interest  and/or  principal  is not  received by
Lender within ten (10) days of when such payment is due, then in addition to the
remedies conferred upon Lender under the Credit Documents, a late charge of five
percent  (5%) of the amount of the  installment  due and unpaid will be added to
the  delinquent  amount to  compensate  Lender for the expense of  handling  the
delinquency  for any payment past due in excess of ten (10) days,  regardless of
any notice and cure period.

          (f) Upon the  occurrence  of an Event of Default  and after  maturity,
including maturity upon acceleration,  the unpaid principal balance, all accrued
and unpaid interest and all other amounts payable  hereunder shall bear interest
at the Default Rate.

     2.4 Excess Balance Payment. There shall be due and payable from Borrower to
Lender,  and  Borrower  shall  repay to Lender,  within five (5) days of written
demand  from  Lender,  from time to time,  any  amount by which the  outstanding
principal balance of the RLC exceeds the Maximum RLC Loan Amount.

     2.5  Conditions.  Lender shall have no  obligation  to make any RLC Advance
unless and until all of the conditions and requirements of this Credit Agreement
are fully  satisfied.  However,  Lender in its sole and absolute  discretion may
elect to make one or more RLC Advances prior to full satisfaction of one or more
such conditions and/or requirements. Notwithstanding that such an RLC Advance or
RLC Advances are made, such unsatisfied conditions and/or requirements shall not
be waived or released thereby. Borrower shall be and continue to be obligated to
fully satisfy such  conditions  and  requirements,  and Lender,  at any time, in
Lender's sole and absolute  discretion,  may stop making RLC Advances  until all
conditions and requirements are fully satisfied.

     2.6 Other RLC Advances by Lender.  Lender,  after giving  fifteen (15) days
prior written  notice to Borrower to allow for corrective  action,  from time to
time,  may make RLC  Advances in any amount in payment of accrued and unpaid (i)
insurance premiums, taxes,  assessments,  liens or encumbrances existing against
property  encumbered  by the Security  Documents,  (ii) any charges and expenses
that are the obligation of Borrower under this Credit  Agreement or any Security
Document,  and (iii) any charges or matters  necessary  to preserve the property
encumbered  by the  Security  Documents or to cure any still  existing  Event of
Default.

     2.7 Assignment.  Borrower shall have no right to any RLC Advance other than
to have the  same  disbursed  by  Lender  in  accordance  with the  disbursement
provisions  contained  in this Credit  Agreement.  Any  assignment  or transfer,
voluntary or involuntary,  of this Credit Agreement or any right hereunder shall
not be binding  upon or in any way affect  Lender  without its written  consent;
Lender  may  make  RLC  Advances  under  the  disbursement   provisions  herein,
notwithstanding any such assignment or transfer.

                                      -10-
<PAGE>
                                     ARTICLE

                          PAYMENTS AND FEES PROVISIONS

     3.1 Payments.

          (a) All payments and  prepayments  by the Borrower of principal of and
interest on the Note and all fees,  expenses and any other Obligation payable to
Lender in connection with the Loans shall be  nonrefundable  and made in Dollars
or  immediately  available  funds to Lender not later than 2:00 p.m.,  (Phoenix,
Arizona local time) on the dates called for under this Credit Agreement,  at the
office of Lender in Phoenix,  Arizona.  Funds  received after such hour shall be
deemed to have been received by Lender on the next Banking Day.

          (b) Unless  otherwise  required by  applicable  law,  payments will be
applied first to accrued, unpaid interest, then to principal,  and any remaining
amount to any unpaid collection costs, late charges and other charges; provided,
however,  upon  delinquency or other default,  Lender reserve the right to apply
payments among  principal,  interest,  late charges,  collection costs and other
charges at its discretion.

          (c)  Interest  shall be due and  payable on the Loans on each  Payment
Date and on the Maturity Date.

          (d)  Whenever any payment to be made  hereunder  shall be stated to be
due on a day which is not a Banking Day,  such payment shall be made on the next
succeeding  Banking  Day,  and such  extension  of time  shall  in such  case be
included in the computation of interest, commission or fee, as the case may be.

          (e) Borrower  authorizes Lender to collect all interest,  fees, costs,
and/or expenses due under this Credit  Agreement by charging  Borrower's  demand
deposit account number 97005486 with Lender, or any other demand deposit account
maintained by Borrower with Lender, for the full amount thereof. Should there be
insufficient  funds in any such demand deposit account to pay all such sums when
due, the full amount of such deficiency  shall be immediately due and payable by
Borrower.

     3.2 (a) RLC Non-Use Fee: Borrower agrees to pay Lender a quarterly fee (the
"RLC Non-Use Fee") in an annualized  amount equal to one-half  percent (0.5%) of
the  average  daily  undrawn  balance  of the RLC  Commitment  during  the prior
calendar  quarterly period.  The RLC Non-Use Fee shall initially accrue from the
Closing  Date and shall be due and payable in arrears  within  three (3) Banking
Days after written  notice of such amount due by Lender to Borrower and shall be

                                      -11-
<PAGE>
non-refundable.  The  first  such  payment  shall be due on March  31,  2000 and
thereafter on each Quarterly End Date.

          (b) RLC Fee:  Borrower  agrees to pay to Lender on the Closing  Date a
fee  (the  "RLC  Fee")  in an  amount  equal to one  percent  (1.0%)  of the RLC
Commitment.  Lender agrees to apply the RLC Fee to any  origination fee that may
be charged by Lender on any future  increase  in the RLC  Commitment  so long as
such increase is requested by Borrower within 180 days of the Closing Date.

     3.3  Computations.  All fees and  interest on the Note shall be computed on
the basis of a year of 360-days/year  and accrue on a daily basis for the actual
number of days elapsed.

     3.4 Maintenance of Accounts.  Lender shall maintain, in accordance with its
usual  practice,  an account or  accounts  evidencing  the  indebtedness  of the
Borrower and the amounts  payable and paid from time to time  hereunder.  In any
legal action or proceeding in respect of this Credit Agreement, the entries made
in the ordinary course of business in such account or accounts shall be evidence
of the  existence  and  amounts  of the  obligations  of  the  Borrower  therein
recorded.  The failure to record any such amount  shall not,  however,  limit or
otherwise affect the obligations of the Borrower  hereunder to repay all amounts
owed  hereunder,  together with all interest  accrued thereon as provided in the
Note.

                                      -12-
<PAGE>
                                     ARTICLE

                                    SECURITY

     4.1 Security. So long as the Loan is outstanding,  Borrower shall cause the
Loan and Borrower's obligations under this Credit Agreement to be secured at all
times by the following:

          (a)  a  valid  and  effective   security   agreement   (the  "Security
Agreement"),  duly executed and delivered by or on behalf of Borrower,  granting
Lender a valid and enforceable security interest in all of its personal property
as described therein, subject to no prior Liens except for Permitted Liens; and

          (b) by a valid and effective  intellectual property security agreement
(the "IP Security  Agreement")  duly  executed and  delivered by or on behalf of
Borrower,  granting Lender a valid and enforceable  security  interest in all of
its intellectual  property described  therein,  subject to no prior Liens except
for Permitted Liens.

     4.2 Security  Documents.  All of the  documents  required by this Article 4
shall be in form satisfactory to Lender and Lender's counsel, and, together with
any  Financing  Statements  for filing  and/or  recording,  and any other  items
required  by Lender  to fully  perfect  and  effectuate  the liens and  security
interests  of Lender  contemplated  by the Security  Agreement,  and this Credit
Agreement,  may  heretofore  or  hereinafter  be  referred  to as the  "Security
Documents."

                                      -13-
<PAGE>
                                     ARTICLE

                              CONDITIONS PRECEDENT

     The  obligation of Lender to make any Loan and to make each and any Advance
hereunder is subject to the full prior satisfaction at each such time of each of
the following conditions precedent:

     5.1  Initial or Any  Subsequent  Advance.  Prior to its making the  initial
Advance or any subsequent Advance, Lender shall have received the following each
in form and substance satisfactory to Lender:

          (a) This Credit Agreement.  This Credit  Agreement,  duly executed and
delivered to Lender by Borrower.

          (b) The RLC Note. The RLC Note,  duly executed,  drawn to the order of
Lender and otherwise as provided in Article 2 hereof.

          (c)  Organizational  Documents.  A copy  of the  current  organization
documents of Borrower,  including all amendments  thereto,  certified as current
and complete by the appropriate  authority of the state of Borrower's formation,
together  with  evidence of its good  standing in the state of formation  and in
every other state in which it is doing  business or the conduct of its  business
requires such standing for the enforcement of material contracts.

          (d) Secretary Certificate. A certificate of the secretary of Borrower,
signed by the duly  appointed  secretary  thereof  and issued as of the  Closing
Date,  certifying  that (i) attached  thereto is a true and complete copy of its
organizational  documents in effect on the date of passage of the authorizations
described  immediately  below and at all  subsequent  times to and including the
date of the  certificate,  (ii) attached  thereto is a true and complete copy of
any of its  resolutions or  authorizations  authorizing the Loan, the execution,
delivery,  and  performance  of this  Credit  Agreement,  the Note,  the  Credit
Documents,  and all advances of credit hereunder, and that such resolutions have
not been modified, rescinded, or amended and are in full force and effect, (iii)
no change has been made to its charter  documents other than as reflected in the
certified  copies  submitted  in  connection  with the  delivery  of this Credit
Agreement  or as approved in writing by Lender,  and (iv) set forth  therein and
appropriately  identified are the names, current official titles, and signatures
of its officers  authorized to sign this Credit Agreement and other documents to
be delivered hereunder and/or to act as Authorized Manager hereunder.

          (e) Security  Agreement.  The Security  Agreement,  duly  executed and
delivered to Lender by Borrower.

                                      -14-
<PAGE>
          (f) IP Security Agreement.  The IP Security  Agreement,  duly executed
and delivered to Lender by Borrower  and, if required by Lender,  filed with the
US Patent Office.

          (g) Compliance Certificate.  A Compliance Certificate substantially in
the  form of  Exhibit  "B"  attached  hereto,  indicating  that  Borrower  is in
compliance with the Financial Covenants as of September 30, 1999.

          (h) Fees and Costs. Payment of the RLC Fee and costs of the Lender.

          (i)  Financing  Statements.  Financing  Statements,  duly executed and
delivered to Lender by Borrower.

          (j)  Accounts  Receivable.   A  listing  and  aging  of  the  accounts
receivable of Borrower as of September 30, 1999.

          (k)  Triparty  Agreement.  A Triparty  Agreement,  duly  executed  and
delivered to Lender by Borrower and Gum Tech International,  Inc. (the "Triparty
Agreement").

          (l) Borrower's  Financial  Statements.  Borrower's  September 30, 1999
financial statements.

          (m)  Landlord  Waivers.  Lien  waivers  substantially  in the  form of
Exhibit "D" attached  hereto,  executed by the landlord of each leased  premises
where collateral is located, if any.

          (n) Additional  Information.  Such other  information and documents as
may reasonably be required by Lender or Lender's counsel.

     5.2 No Event of Default.  No Event of Default known to Borrower  shall have
occurred and be continuing, or result from Lender's making of any Loan.

     5.3 No Material Adverse Effect. Since the date of the most recent financial
statements provided to Lender by Borrower,  no change shall have occurred in the
business or financial  condition of Borrower that could have a Material  Adverse
Effect.

     5.4  Representations  and Warranties.  The  representations  and warranties
contained  in  Article  6  hereof  shall  be true and  correct  in all  material
respects, with the same force and effect as though made on and as of the Closing
Dat e (other than those of such  representations  which by their  express  terms
speak  to a date  prior  to that  date,  whic h  representations  shall,  in all
material respects, be true and correct as of such respective date).

                                      -15-
<PAGE>
                                    ARTICLE 6

                         REPRESENTATIONS AND WARRANTIES

     To induce  Lender to make the Loan,  Borrower  represents  and  warrants to
Lender that:

     6.1  Recitals.  The recitals  and  statements  of intent  appearing in this
Credit Agreement are true and correct.

     6.2 Organization and Good Standing. It is duly organized,  validly existing
and in good standing in all states  and/or  countries in which the nature of its
business and property makes such qualifications necessary or appropriate. It has
the legal power and authority to own its  properties  and assets and to transact
the  business in which it is engaged and is or will be qualified in those states
and/or countries  wherein the nature of its proposed  business and property will
make such qualifications necessary or appropriate in the future.

     6.3  Authorization  and Power. It has the power and requisite  authority to
execute,  deliver and  perform  this  Credit  Agreement,  the Note and the other
Credit  Documents to be executed by it; it is duly  authorized to, and has taken
all action,  corporate or  otherwise,  necessary  to  authorize it to,  execute,
deliver  and  perform  this  Credit  Agreement,  the Note and such other  Credit
Documents and is and will continue to be duly  authorized to perform this Credit
Agreement, the Note and such other Credit Documents.

     6.4 Security  Documents.  The liens,  security  interests  and  assignments
created by the Security  Documents will, when granted,  be valid,  effective and
enforceable liens, security interests and assignments,  except to the extent (if
any) otherwise agreed in writing by Lender.

     6.5 No Conflicts or Consents.  Neither the  execution  and delivery of this
Credit Agreement, the Note or the other Credit Documents to which it is a party,
nor the consummation of any of the transactions herein or therein  contemplated,
nor  compliance  with the  terms  and  provisions  hereof  or with the terms and
provisions  thereof,  (a) will  materially  contravene or conflict with: (i) any
provision  of law,  statute  or  regulation  to  which it is  subject,  (ii) any
judgment, license, order or permit applicable to it, (iii) any indenture, credit
agreement, mortgage, deed of trust, or other agreement or instrument to which it
is a party or by which it may be bound,  or to which it may be  subject,  or (b)
will  violate  any  provision  of  its  organizational  documents.  No  consent,
approval, authorization or order of any court or Governmental Authority or other
Person is required in  connection  with the  execution and delivery by it of the
Credit  Documents  or to  consummate  the  transactions  contemplated  hereby or
thereby, or if required,  such consent,  approval,  authorization or order shall
have been obtained.

     6.6 No  Litigation.  Except  for those  matters  that have been  previously
disclosed to Lender in writing, there are no actions, suits or legal, equitable,
arbitration or administrative  proceedings  pending,  or to its actual knowledge
overtly threatened, against Borrower that would, if adversely determined, have a
Material  Adverse  Effect.

                                      -16-
<PAGE>
     6.7  Financial  Condition.  It  has  delivered  to  Lender  copies  of  the
Borrower's most recent financial statements.  Such financial statements,  in all
material  respects,  fairly and  accurately  present the  financial  position of
Borrower as of such date, have been prepared in accordance with GAAP and neither
contain  any untrue  statement  of a material  fact nor fail to state a material
fact required in order to make such financial  statement not  misleading.  Since
the date thereof,  Borrower has not discovered any  obligations,  liabilities or
indebtedness  (including  contingent and indirect liabilities and obligations or
unusual  forward or long-term  commitments)  which in the aggregate are material
and adverse to the  financial  position or business of Borrower that should have
been but were not reflected in such  financial  statements.  No changes having a
Material Adverse Effect have occurred in the financial  condition or business of
Borrower since the date of such financial statements.

     6.8 Taxes. It has filed or caused to be filed all returns and reports which
are required to be filed by any jurisdiction, and has paid or made provision for
the  payment  of all  taxes,  assessments,  fees or other  governmental  charges
imposed upon its  properties,  income or franchises,  as to which the failure to
file or pay would have a Material  Adverse  Effect,  except such  assessments or
taxes,  if  any,  which  are  being  contested  in  good  faith  by  appropriate
proceedings.

     6.9  No  Stock  Purchase.   No  part  of  the  proceeds  of  any  financial
accommodation  made by Lender in connection  with this Credit  Agreement will be
used to purchase or carry "margin  stock," as that term is defined in Regulation
U, or to extend  credit to others for the purpose of purchasing or carrying such
margin stock.

     6.10  Advances.  Each  request for an Advance or for the  extension  of any
financial  accommodation  by Lender  whatsoever  shall constitute an affirmation
that the representations  and warranties  contained herein are, true and correct
as of the time of such request.  All  representations and warranties made herein
shall survive the execution of this Credit  Agreement,  all advances of proceeds
of the  Loans  and  the  execution  and  delivery  of all  other  documents  and
instruments in connection with the Loans and/or this Credit  Agreement,  so long
as Lender has any  commitment  to lend  hereunder  and until the Loans have been
paid in full and all of Borrower's obligations under this Credit Agreement,  the
Note and all Security Documents have been fully discharged.

     6.11 Enforceable Obligations. This Credit Agreement, the Note and the other
Credit  Documents  are the legal,  valid and binding  obligations  of  Borrower,
enforceable  against Borrower in accordance with their respective terms,  except
as limited by  bankruptcy,  insolvency or other laws or equitable  principles of
general application relating to the enforcement of creditors' rights.

     6.12 No Default.  No event or condition has occurred and is continuing that
constitutes an Event of Default.

     6.13  Significant  Debt  Agreements.  It is not in default in any  material
respect under any Significant Debt Agreement.

                                      -17-
<PAGE>
     6.14 ERISA.  (a) No Reportable  Event has occurred and is  continuing  with
respect to any Plan;  (b) PBGC has not  instituted  proceedings to terminate any
Plan;  (c) neither the Borrower,  any member of the  Controlled  Group,  nor any
duly-appointed  administrator  of a Plan (i) has incurred any  liability to PBGC
with  respect to any Plan other than for premiums not yet due or payable or (ii)
has  instituted or intends to institute  proceedings to terminate any Plan under
Section  4041 or  4041A  of  ERISA;  and (d)  each  Plan of  Borrower  has  been
maintained and funded in all material  respects in accordance with its terms and
in all material  respects in accordance with all provisions of ERISA  applicable
thereto. Neither the Borrower nor any of its Subsidiaries participates in, or is
required  to make  contributions  to, any  Multi-employer  Plan (as that term is
defined in Section 3(37) of ERISA).

     6.15  Compliance  with Law. It is in substantial  compliance with all laws,
rules,  regulations,  orders, writs, injunctions and decrees that are applicable
to it, or its properties, noncompliance with which would have a Material Adverse
Effect.

     6.16  Solvent.  It (both  before  and  after  giving  effect  to the  Loans
contemplated hereby) is solvent, has assets having a fair value in excess of the
amount  required to pay its probable  liabilities  on its existing debts as they
become absolute and matured,  and has, and will have, access to adequate capital
for the  conduct of its  business  and the ability to pay its debts from time to
time incurred in connection therewith as such debts mature.

     6.17 Investment  Borrower Act. It is not, and is not directly or indirectly
controlled  by, or acting on behalf  of,  any  person  which is, an  "Investment
Borrower" within the meaning of the Investment Borrower Act of 1940, as amended.

     6.18 Title. It has good and marketable title to the Collateral.

     6.19 Survival of  Representations,  Etc. All representations and warranties
by Borrower  herein shall  survive the making of the Loan and the  execution and
delivery  of the  Note;  any  investigation  at any time made by or on behalf of
Lender  shall not diminish  Lender's  right to rely on the  representations  and
warranties herein.

     6.20  Environmental  Matters.  Except as previously  disclosed to Lender in
writing,  it,  to the  best of its  knowledge  after  due  investigation,  is in
compliance in all material  respects with all applicable  environmental,  health
and safety  statutes and  regulations  and  Borrower  does not have any material
contingent  liability in  connection  with any improper  treatment,  disposal or
release into the environment of any hazardous or toxic waste or substance.

     6.21  Licenses,  Tradenames.  It,  as of the  date  hereof,  possesses  all
necessary  trademarks,  tradenames,  copyrights,  patents,  patent  rights,  and
licenses to conduct its  business as now  operated,  without any known  conflict
with valid  trademarks,  tradenames,  copyright  patents and  license  rights of
others.

                                      -18-
<PAGE>
     6.22 Year 2000 Compliance.  Borrower and its  Subsidiaries,  as applicable,
have  reviewed the areas  within  their opera tions and business  which could be
adversely affected by, and have developed or are developing a program to address
on a timely  basis,  the Year 2000  Problem  and have made  related  appropriate
inquiry  of  material  suppliers  and vend  ors,  and based on such  review  and
program,  the Year 2000  Problem will not have a Material  Adverse  Effect upo n
their financial condition,  operations or business as now conducted.  "Year 2000
Problem" means the possibility th at any computer applications or equipment used
by Borrower may be unable to  recognize  and  properly  perform d ate  sensitive
functions  involving  certain dates prior to and any dates on or after  December
31, 1999.

                                      -19-
<PAGE>
                                    ARTICLE 7

                              AFFIRMATIVE COVENANTS

     Until  payment  in full of the Loans and the  complete  performance  of the
Obligation, Borrower agrees that:

     7.1 Financial Statements, Reports and Documents. It shall deliver, or cause
to be delivered, to Lender each of the following:

          (a) Annual  Statements  of Borrower.  As soon as available  and in any
event  within  ninety (90) days after the close of each fiscal year of Borrower,
audited financial statements of Borrower,  including its balance sheet as of the
close of such fiscal year and  statements  of income of Borrower for such fiscal
year,  in each  case  setting  forth in  comparative  form the  figures  for the
preceding  fiscal  year,  all  in  reasonable   detail  and  accompanied  by  an
unqualified  opinion  thereon of  independent  public  accountants of recognized
national  standing  selected by Borrower and acceptable to Lender, to the effect
that such financial statements have been prepared in accordance with GAAP.

          (b) Monthly Statements of Borrower.  As soon as available,  and in any
event  within  twenty (20) days after the end of each month  (except for that at
the close of the fiscal year), copies of the balance sheet of Borrower as of the
end of such month,  and  statement  of income of Borrower for that month and for
the portion of the fiscal year ending with such month, all in reasonable  detail
and fairly stated,  certified by Borrower and prepared by Borrower in accordance
with GAAP.

          (c)  Compliance  Certificate  of  Borrower.  At the end of each weekly
period  until  Borrower's  Net Income is positive  for at least two  consecutive
fiscal  quarters,  and thereafter  within twenty (20) days after the end of each
month,  a  certificate  signed  by  the  Authorized  Manager  of  the  Borrower,
substantially in the form of Exhibit "B" attached hereto certifying that after a
review of the activities of Borrower during such period,  Borrower has observed,
performed and fulfilled each and every obligation and covenant  contained herein
and no Event of Default exists under any of the same or, if any Event of Default
shall have occurred,  specifying the nature and status thereof, and stating that
all financial  statements of Borrower  delivered to Lender during the respective
period  pursuant to Sections  7.1(a) and 7.1(b)  hereof,  to his/her  knowledge,
fairly  present in all material  respect the financial  position of the Borrower
and the results of its  operations  at the dates and for the periods  indicated,
and have been prepared in accordance  with GAAP,  together with a calculation of
the Financial Covenants.

          (d) Borrowing Base Certificate. At the end of each weekly period until
Borrower's Net Income is positive for at least two consecutive  fiscal quarters,
and thereafter  within twenty (20) days after the end of each month, a Borrowing
Base Certificate substantially in the form attached hereto as Exhibit "C".

                                      -20-
<PAGE>
          (e) Other Information. Such other information concerning the business,
properties  or  financial  condition  of  Borrower  as Lender  shall  reasonably
request.

     7.2 Maintenance of Existence and Rights;  Conduct of Business;  Management.
It will preserve and maintain its  existence and all of its rights,  privileges,
licenses,  permits,  franchises  and other rights  necessary or desirable in the
normal conduct of its business, conduct its business in an orderly and efficient
manner  consistent  with  good  business  practices  and  maintain  professional
management of its business.

     7.3  Operations  and  Properties.  It will keep in good  working  order and
condition,  ordinary wear and tear  excepted,  all of its assets and  properties
which are necessary to the conduct of its business.

     7.4 Authorizations and Approvals. It will maintain, at its own expense, all
such governmental licenses,  authorizations,  consents, permits and approvals as
may be required to enable it to comply with its obligations  hereunder and under
the other  Credit  Documents  and to operate  its  businesses  as  presently  or
hereafter duly conducted.

     7.5 Compliance  with Law. It will comply with all applicable  laws,  rules,
regulations,  and all final,  nonappealable orders of any Governmental Authority
applicable to it or any of its property,  business  operations or  transactions,
including without limitation,  any environmental laws applicable to it, a breach
of which could result in a Material Adverse Effect.

     7.6 Payment of Taxes and Other Indebtedness.  It will pay and discharge (i)
all income taxes and payroll taxes, (ii) all taxes, assessments,  fees and other
governmental  charges imposed upon it or upon its income or profits, or upon any
property belonging to it, before delinquent, which become due and payable, (iii)
all lawful claims (including claims for labor,  materials and supplies),  which,
if unpaid,  might  become a Lien upon any of its  property,  and (iv) all of its
Indebtedness  as it becomes due and  payable,  except as  prohibited  hereunder;
provided,  however,  that  it  shall  not be  required  to  pay  any  such  tax,
assessment,  charge,  levy, claims or Indebtedness if and so long as the amount,
applicability  or validity thereof shall currently be contested in good faith by
appropriate  actions and  appropriate  accruals and reserves  therefor have been
established in accordance with GAAP.

     7.7 Compliance with  Significant Debt Agreements and Other  Agreements.  It
will comply in all material  respects with (i) all Significant  Debt Agreements,
and (ii) all  agreements and contracts to which it is a party, a breach of which
could result in a Material Adverse Effect.

     7.8  Compliance  with  Credit  Documents.  It will  comply with any and all
covenants and provisions of this Credit Agreement, the Note and all other Credit
Documents.

                                      -21-
<PAGE>
     7.9 Notice of Default.  It will furnish to Lender immediately upon becoming
actually  aware of the existence of any event or condition  that  constitutes an
Event of Default, a written notice specifying the nature and period of existence
thereof  and the  action  which it is taking or  proposes  to take with  respect
thereto.

     7.10 Other  Notices.  It will  promptly  notify  Lender of (a) any Material
Adverse Effect,  (b) any waiver,  release or default under any Significant  Debt
Agreement,  (c) any claim not covered by  insurance  against  Borrower or any of
Borrower's   properties,   and  (d)  the   commencement  of,  and  any  material
determination  in, any litigation with any third party or any proceeding  before
any Governmental Authority affecting it, except litigation or proceedings which,
if adversely determined, would not have a Material Adverse Effect.

     7.11 Books and Records;  Access; Audits. Upon three (3) Banking Days notice
from Lender, it will give any authorized  representative of Lender access during
normal  business hours to, and permit such  representative  to examine,  copy or
make excerpts from,  any and all books,  records and documents in its possession
of and  relating  to the Loans,  and to inspect any of its  properties.  It will
maintain  complete  and  accurate  books  and  records  of its  transactions  in
accordance with good accounting  practices.  In addition, so long as no Event of
Default  has  occurred  and  is   continuing,   it  will  give  any   authorized
representative  of Lender  access  during  normal  business  hours to  conduct a
minimum of one (1)  collateral  audit per year and the costs of such audit shall
be for the account of the Borrower.

     7.12 ERISA Compliance. With respect to its Plans, it shall (a) at all times
comply with the minimum funding  standards set forth in Section 302 of ERISA and
Section  412 of the Code or shall  have duly  obtained  a formal  waiver of such
compliance from the proper  authority;  (b) at Lender's  request,  within thirty
(30) days after the filing  thereof,  furnish  to Lender  copies of each  annual
report/return  (Form 5500  Series),  as well as all  schedules  and  attachments
required to be filed with the  Department  of Labor and/or the Internal  Revenue
Service pursuant to ERISA, in connection with each of its Plans for each year of
the plan; (c) notify Lender within a reasonable time of any fact, including, but
not limited  to, any  Reportable  Event  arising in  connection  with any of its
Plans, which constitutes  grounds for termination thereof by the PBGC or for the
appointment  by the  appropriate  United States  District  Court of a trustee to
administer such Plan,  together with a statement,  if requested by Lender, as to
the reason  therefor and the action,  if any,  proposed to be taken with respect
thereto;  and (d) furnish to Lender  within a  reasonable  time,  upon  Lender's
request,  such  additional  information  concerning  any of its  Plans as may be
reasonably requested.

     7.13 Further Assurances.  It will make, execute or endorse, and acknowledge
and  deliver  or  file  or  cause  the  same  to  be  done,  all  such  notices,
certifications and additional agreements,  undertakings or other assurances, and
take any and all such  other  action,  as Lender  may,  from time to time,  deem
reasonably necessary or proper to fully evidence the Loan.

                                      -22-
<PAGE>
     7.14 Insurance. It shall maintain in full force and effect at all times all
insurance coverages required under the terms of this Credit Agreement and/or the
Security  Documents to which it is a party.  In addition,  it shall  maintain in
full force and effect at all times:

          (a)  Policies of all risk  coverage  insurance  covering  all tangible
personalty  in which Lender has been granted or obtained a security  interest to
secure the Obligation, in coverage amounts not less than, from time to time, the
fair market value thereof.

          (b) Policies of insurance  evidencing  personal liability and property
damage  liability  coverages  in amounts not less than  $1,000,000.00  (combined
single limit for bodily  injury and  property  damage),  and an umbrella  excess
liability coverage in an amount not less than  $2,000,000.00  shall be in effect
with respect to Borrower.

          (c)  Policies of workers'  compensation  insurance in amounts and with
coverages as legally required.

Without  limitation of the foregoing,  it shall at all times maintain  insurance
coverages in scope and amount not less than,  and not less  extensive  than, the
scope and amount of insurance coverages customary in the trades or businesses in
which it is from time to time engaged.  All of the aforesaid insurance coverages
shall be issued by insurers reasonably acceptable to Lender.

     Copies of all policies of  insurance  evidencing  such  coverages in effect
from time to time and  showing  Lender as an  additional  insured and loss payee
shall be  delivered to Lender  within  fifteen (15) days of the Closing Date and
upon reasonable  notice upon issuance of new policies  thereafter.  From time to
time, promptly upon Lender's request, it shall provide evidence  satisfactory to
Lender (i) that  required  coverage in required  amounts is in effect,  and (ii)
that Lender is shown as an additional insured and loss payee with respect to all
such coverages,  as Lender's interest may appear, by standard  (non-attribution)
loss payable endorsement,  additional insured endorsement, insurer's certificate
or other means  acceptable to Lender in its reasonable  discretion.  At Lender's
option,  it shall  deliver to Lender  certified  copies of all such  policies of
insurance  in effect  from  time to time,  to be  retained  by Lender so long as
Lender shall have any  commitment  to lend  hereunder  and/or any portion of the
Obligation  shall be outstanding  or  unsatisfied.  All such insurance  policies
shall  provide  for at least  thirty  (30)  days  prior  written  notice  of the
cancellation or modification thereof to Lender.

     7.15 Year 2000 Compliance. It will perform all acts reasonably necessary to
ensure that (a) Borrower and any business in which  Borrower holds a substantial
interest,  and (b) all  customers,  suppliers  and vendors  that are material to
Borrower's  business,  become Year 2000 Compliant in a timely manner.  Such acts
shall  include,  without  limitation,  performing  a  comprehensive  review  and
assessment of all Borrower's systems and adopting a detailed plan, with itemized
budget, for the remediation,  monitoring and testing of such systems. As used in
this paragraph,  "Year 2000 Compliant" shall mean, in regard to any entity, that
all software,  hardware,  firmware,  equipment,  goods or systems utilized by or
material to the business  operations or financial condition of such entity, will
properly  perform date  sensitive  functions  before,  during and after the year
2000.   Borrower  shall,   immediately  upon  request,   provide  to  Bank  such
certifications or other evidence of Borrower's compliance with the terms of this
paragraph as Bank may from time to time require.

     7.16 Deposit Accounts.  It shall maintain its principal depository accounts
with Lender.

                                      -23-
<PAGE>
                                    ARTICLE 8

                               NEGATIVE COVENANTS

     Until payment in full of the Loans and the  performance of the  Obligation,
Borrower  shall not,  without  receiving  the prior express  written  consent of
Lender:

     8.1 Existence.  Dissolve or liquidate, or merge or consolidate with or into
any other  entity,  or turn over the  management  or operation of its  property,
assets or business  to any other  Person or make any  substantial  change in the
character of its business.

     8.2  Amendments  to  Organizational  Documents.  Amend  its  organizational
documents  if the result  thereof  could  result in the  occurrence  directly or
indirectly of a Material Adverse Effect.

     8.3 Margin  Stock.  Use any  proceeds of the Loans,  or any proceeds of any
other or future  financial  accommodation  from Lender for the purpose,  whether
immediate,  incidental or ultimate, of purchasing or carrying any "margin stock"
as that term is defined in Regulation U or to reduce or retire any  indebtedness
undertaken for such purposes  within the meaning of said  Regulation U, and will
not use such proceeds in a manner that would involve  Borrower in a violation of
Regulation U or of any other Regulation of the Board of Governors of the Federal
Reserve System, nor use such proceeds for any purpose not permitted by Section 7
of the  Exchange  Act,  or  any  of the  rules  or  regulations  respecting  the
extensions of credit promulgated thereunder.

     8.4  Distributions.  Declare or pay any dividends or make any distributions
of any kind other than distributions necessary to satisfy the tax liabilities of
the members of Borrower arising from the operations of Borrower.

     8.5 Liens. On and after the date hereof, create, issue, assume or suffer to
exist Liens upon the Collateral, except Permitted Liens.

     8.6 Transfer Collateral. Assign, transfer or convey any of its right, title
and interest in the Collateral.

     8.7  Merger;  Sale of  Assets.  (i) Sell,  lease,  transfer  or  dispose of
substantially  all of the Collateral to another entity; or (ii) consolidate with
or merge into another  entity,  or permit any  transfer of the  ownership of the
Collateral,  permit any other entity to merge into Borrower or consolidate  with
it, or permit any transfer of the ownership or power to control Borrower.

     8.8  Indebtedness.  Incur in excess of  $100,000 in the  aggregate  for any
fiscal year,  without  receiving  the prior express  written  consent of Lender,
which consent shall not be unreasonably withheld.

                                      -24-
<PAGE>
     8.9 Financial Covenants. Permit:

          (a) Its Liquidity  Percentage to be less than thirty  percent (30%) as
of the end of each weekly period until  Borrower's Net Income is positive for at
least two  consecutive  fiscal  quarters  and  thereafter  as of the end of each
monthly period.

          (b) Beginning  with that fiscal quarter ending March 31, 2000, its Net
Income to be less than $0 (i.e. net loss) in any quarter.

                                      -25-
<PAGE>
                                    ARTICLE 9

                                EVENTS OF DEFAULT

     9.1 Events of Default. An "Event of Default" shall exist if any one or more
of the following events (herein  collectively  called "Events of Default") shall
occur and be continuing:

          (a) Borrower  shall fail to pay any  principal of, or interest on, the
Note when the same shall  become due or payable and such failure  continues  for
ten (10) Banking Days after notice thereof to Borrower.

          (b) Any failure or neglect to perform or observe any of the covenants,
conditions,  provisions or agreements of Borrower contained herein, or in any of
the other Credit Documents (other than a failure or neglect  described in one or
more of the other  provisions  of this  Section 9.1) and such failure or neglect
either cannot be remedied or, if it can be remedied, it continues unremedied for
a period of thirty (30) days after written notice thereof to Borrower.

          (c) Any warranty, representation or statement contained in this Credit
Agreement  or any of the other  Credit  Documents,  or which is contained in any
certificate  or  statement  furnished  or made to Lender  pursuant  hereto or in
connection  herewith  or with the  Loans,  shall be or shall  prove to have been
false when made or furnished.

          (d) The occurrence of any material  "event of default" or "default" by
Borrower under any Credit Document, or any agreement, now or hereafter existing,
to which  Lender or an  Affiliate  of Lender,  and  Borrower or an  Affiliate of
Borrower are a party.

          (e) Borrower shall (i) fail to pay any Indebtedness of Borrower (other
than the Note) due under any  Significant  Debt  Agreement,  or any  interest or
premium thereon,  when due (whether by scheduled maturity,  required prepayment,
acceleration,  demand, or otherwise) or within any applicable grace period, (ii)
fail to perform or observe any term,  covenant,  or  condition on its part to be
performed  or  observed  under any  agreement  or  instrument  relating  to such
Indebtedness,  within any applicable  grace period when required to be performed
or  observed,  if the  effect  of such  failure  to  perform  or  observe  is to
accelerate the maturity of such Indebtedness,  or any such Indebtedness shall be
declared  to be due and  payable,  or  required  to be prepaid  (other than by a
regularly scheduled prepayment),  prior to the stated maturity thereof, or (iii)
allow the  occurrence  of any  material  event of default  with  respect to such
Indebtedness.

          (f) Any one or more of the Credit Documents shall have been determined
to be invalid or unenforceable against Borrower executing the same in accordance

                                      -26-
<PAGE>
with the respective  terms thereof,  or shall in any way be terminated or become
or be declared ineffective or inoperative,  so as to deny Lender the substantial
benefits contemplated by such Credit Document or Credit Documents.

          (g)  Borrower  or  Guarantor  shall (i) apply  for or  consent  to the
appointment  of a receiver,  trustee,  custodian,  intervenor  or  liquidator of
itself or of all or a  substantial  part of its  assets,  (ii) file a  voluntary
petition in bankruptcy or admit in writing that it is unable to pay its debts as
they become due,  (iii) make a general  assignment for the benefit of creditors,
(iv) file a petition or answer seeking  reorganization  of an  arrangement  with
creditors or to take advantage of any bankruptcy or insolvency laws, (v) file an
answer  admitting  the  material  allegations  of, or consent  to, or default in
answering,  a petition  filed against it in any  bankruptcy,  reorganization  or
insolvency  proceeding,  or  (vi)  take  corporate  action  for the  purpose  of
effecting any of the foregoing

          (h) An  involuntary  petition  or  complaint  shall be  filed  against
Borrower or  Guarantor,  seeking  bankruptcy  or  reorganization  of Borrower or
Guarantor, or the appointment of a receiver,  custodian,  trustee, intervenor or
liquidator of Borrower or Guarantor,  or all or substantially all of its assets,
and such petition or complaint  shall not have been dismissed  within sixty (60)
days of the filing thereof;  or an order,  order for relief,  judgment or decree
shall be  entered  by any court of  competent  jurisdiction  or other  competent
authority  approving a petition or complaint seeking  reorganization of Borrower
or  Guarantor,   appointing  a  receiver,   custodian,  trustee,  intervenor  or
liquidator of Borrower or Guarantor,  or all or substantially all of its assets,
and such order,  judgment or decree shall continue  unstayed and in effect for a
period of sixty (60) days.

          (i) Any final judgment(s) (excluding those the enforcement of which is
suspended  pending  appeal)  for the  payment  of money in  excess of the sum of
$250,000 in the aggregate  (other than any judgment  covered by insurance  where
coverage  has  been  acknowledged  by the  insurer)  shall be  rendered  against
Borrower, and such judgment or judgments shall not be satisfied, settled, bonded
or  discharged  at least  ten (10)  days  prior to the date on which  any of its
assets could be lawfully sold to satisfy such judgment.

          (j) Either (i) proceedings shall have been instituted to terminate, or
a notice of termination  shall have been filed with respect to, any Plans (other
than a Multi-Employer Pension Plan as that term is defined in Section 4001(a)(3)
of  ERISA)  by  Borrower,  any  member  of the  Controlled  Group,  PBGC  or any
representative  of any thereof,  or any such Plan shall be  terminated,  in each
case under Section 4041 or 4042 of ERISA, and such  termination  shall give rise
to a liability of the Borrower or the  Controlled  Group to the PBGC or the Plan
under ERISA having an effect in excess of $100,000 or (ii) a  Reportable  Event,
the  occurrence  of which  would  cause  the  imposition  of a lien in excess of
$100,000  under  Section 4062 of ERISA,  shall have occurred with respect to any

                                      -27-
<PAGE>
Plan  (other  than a  Multi-Employer  Pension  Plan as that term is  defined  in
Section 4001(a)(3) of ERISA) and be continuing for a period of sixty (60) days.

          (k) Any of the following events shall occur with respect to any Multi-
Employer  Pension Plan (as that term is defined in Section  4001(a)(3) of ERISA)
to which  Borrower  contributes  or  contributed  on behalf of its employees and
Lender  determines  in good  faith  that the  aggregate  liability  likely to be
incurred by Borrower,  as a result of any of the events specified in Subsections
(i),  (ii) and (iii)  below,  will have an  effect  in excess of  $100,000;  (i)
Borrower  incurs a withdrawal  liability  under Section 4201 of ERISA;  (ii) any
such plan is "in  reorganization"  as that term is defined  in  Section  4241 of
ERISA; or (iii) any such Plan is terminated under Section 4041A of ERISA.

          (l) The occurrence of a change in the ownership  structure without the
written consent of Lender, which will not be unreasonably withheld.

          (m) The  dissolution,  liquidation,  sale,  transfer,  lease  or other
disposal of all or substantially all of the assets or business of Borrower.

          (n) Any failure to observe any of the Financial Covenants.

          (o) A substantial change of the Borrower's  executive management group
as determined by Lender in its reasonable discretion without the written consent
of Lender which consent shall not be unreasonably withheld.

          (p) The occurrence of any adverse change in the, business, operations,
assets or financial condition of Borrower,  taken as a whole, that Lender in its
reasonable  discretion deems material,  or if Lender in good faith shall believe
that the prospect of payment or performance of the Loans is impaired.

     9.2  Remedies  Upon Event of  Default.  If an Event of  Default  shall have
occurred and be  continuing,  then Lender may, at its sole option,  exercise any
one or more of the  following  rights  and  remedies,  and  any  other  remedies
provided in any of the Credit  Documents,  as Lender in its sole  discretion may
deem necessary or appropriate, all of which remedies shall be deemed cumulative,
and not alternative:

               (i)  Cease   making   Advances   or   extensions   of   financial
          accommodations in any form to or for the benefit of Borrower,

               (ii) Declare the  principal of, and all interest then accrued on,
          the Note and any other  liabilities  hereunder to be forthwith due and
          payable,  whereupon the same shall become  immediately due and payable
          without presentment,  demand,  protest,  notice of default,  notice of
          acceleration or of intention to accelerate or other notice of any kind
          all of which Borrower  hereby  expressly  waives,  anything  contained
          herein or in the Note to the contrary notwithstanding,

               (iii) Reduce any claim to judgment, and/or

               (iv) Without notice of default or demand,  pursue and enforce any
          of  Lender'  rights  and  remedies  under  the  Credit  Documents,  or
          otherwise  provided  under  or  pursuant  to  any  applicable  law  or
          agreement;  provided,  however, that if any Event of Default specified
          in Sections  9.1(g) and 9.1(h) shall occur,  the principal of, and all
          interest on, the Note and other liabilities  hereunder shall thereupon
          become due and  payable  concurrently  therewith,  without any further
          action by Lender and without presentment,  demand,  protest, notice of
          default, notice of acceleration or of intention to accelerate or other
          notice of any kind, all of which Borrower hereby expressly waives.

     Upon the  occurrence  and during the  continuance  of any Event of Default,
Lender is  hereby  authorized  at any time and from time to time,  with five (5)
days notice to Borrower,  to setoff and apply any and all moneys,  securities or
other property of Borrower and the proceeds therefrom,  now or hereafter held or
received  by or in transit to Lender or its  agents,  from or for the account of
Borrower, whether for safe keeping, custody, pledge, transmission, collection or
otherwise,  and also upon any and all deposits  (general or special) and credits
of  Borrower,  and any and all  claims of  Borrower  against  Lender at any time
existing.  Lender agrees promptly to notify Borrower prior to and after any such
setoff and application,  provided that the failure to give such notice shall not
affect the validity of such setoff and  application.  The rights of Lender under
this  Section  9.2 are in  addition  to other  rights and  remedies  (including,
without limitation, other rights of setoff) which Lender may have.

     9.3  Performance by Lender.  Should  Borrower fail to perform any covenant,
duty or agreement with respect to the pay ment of taxes,  obtaining  licenses or
permits,  or any other  requirement  contained  herein  or in any of the  Credit
Documents  within the period  provided  herein,  if any, for  correction of such
failure,  Lender may, with five (5) days prior notice, at its option, perform or
attempt to perform such  covenant,  duty or agreement on behalf of Borrower . In
such event,  Borrower shall,  at the request of Lender,  promptly pay any amount
expended by Lender in such per  formance or attempted  performance  to Lender at
its office in  Inglewood,  California,  together  with  interest ther eon at the
Default Rate, from the date of such expenditure until paid.  Notwithstanding the
foregoing, it is e xpressly understood that Lender does not assume any liability
or  responsibility  for the  performance of any duties of Borrower  hereunder or
under any of the Credit  Documents or other control over the  management and aff
airs of Borrower.

                                      -28-
<PAGE>
                                   ARTICLE 10

                                  MISCELLANEOUS

     10.1 Modification.  All modifications,  consents,  amendments or waivers of
any  provision of any Credit  Document,  or consent to any departure by Borrower
therefrom,  shall be effective only if the same shall be in writing and accepted
by Lender.

     10.2 Waiver.  No failure to exercise,  and no delay in  exercising,  on the
part of Lender, any right hereunder shall operate as a waiver thereof, nor shall
any single or partial  exercise  thereof  preclude  any other  further  exercise
thereof or the exercise of any other right.  The rights of Lender  hereunder and
under the Credit  Documents shall be in addition to all other rights provided by
law. No  modification or waiver of any provision of this Credit  Agreement,  the
Note or any Credit  Documents,  nor  consent to  departure  therefrom,  shall be
effective  unless in writing and no such consent or waiver  shall extend  beyond
the particular case and purpose involved.  No notice or demand given in any case
shall constitute a waiver of the right to take other action in the same, similar
or other instances without such notice or demand.

     10.3  Payment of  Expenses.  Borrower  shall pay all costs and  expenses of
Lender  (including,  without  limitation,  the attorneys' fees of Lender's legal
counsel)  incurred by Lender in connection with the  documentation of the Loans,
and the  preservation  and  enforcement  of  Lender's  rights  under this Credit
Agreement, the Note, and/or the other Credit Documents;  provided, however, that
notwithstanding  the  aforesaid,  with respect to any legal  action  between the
parties  hereto that is pursued to judgment the  prevailing  party only shall be
reimbursed  by the other party for all costs and  expenses  (including,  without
limitation,  reasonable  attorneys'  fees and costs) incurred in connection with
the preservation and enforcement of its rights under this Credit Agreement,  the
Note and/or other Credit  Documents.  In addition,  Borrower shall pay all costs
and  expenses  of  Lender  in  connection  with  the  negotiation,  preparation,
execution and delivery of any and all amendments,  modifications and supplements
of or to this Credit Agreement, the Note or any other Credit Document.  Borrower
shall  receive a written  estimate of all legal fees and related legal costs and
will have an  opportunity  to review all such  estimates  prior to its approval,
which shall not be unreasonably withheld.

     10.4 Notices.  Except for telephonic  notices permitted herein, any notices
or other  communications  required  or  permitted  to be  given  by this  Credit
Agreement or any other documents and instruments  referred to herein must be (i)
given in writing and  personally  delivered  or mailed by prepaid  certified  or
registered  mail  or  sent  by  overnight  delivery  service,  or  (ii)  made by
telefacsimile  delivered  or  transmitted,  to the party to whom such  notice or
communication is directed, to the address of such party as follows:

         Borrower:        GEL TECH, INC.
                          246 East Watkins Street
                          Phoenix, Arizona 85004
                          Attention:  William J. Hemelt
                          Telecopier: (602) 420-9949

         Lender:          Imperial Bank
                          9920 South La Cienega Boulevard
                          Suite 636
                          Inglewood, California  90301
                          Attention:  Lending Services
                          Telecopier:  (310) 417-5695

         With a copy to:  Imperial Bank
                          400 East Van Buren
                          Suite 900
                          Phoenix, Arizona  85004
                          Attention: Edmund Ozorio
                          Telecopier:  (602) 261-7881

Any notice to be personally  delivered may be delivered to the principal offices
(determined as of the date of such delivery) of the party to whom such notice is
directed.  Any such notice or other  communication  shall be deemed to have been
given (whether actually  received or not) on the day it is personally  delivered
as aforesaid;  or, if mailed,  on the third day after it is mailed as aforesaid;
or, if transmitted by telefacsimile,  on the day that such notice is transmitted
as  aforesaid.  Any party may change its  address  for  purposes  of this Credit
Agreement by giving notice of such change to the other parties  pursuant to this
Section 10.4.

     10.5 Governing Law;  Jurisdiction,  Venue; Waiver of Jury Trial. The Credit
Documents  shall be governed by and construed in accordance with the substantive
laws (other than conflict laws) of the State of California, except to the extent
Lender has greater rights or remedies  under Federal law,  whether as a national
bank or  otherwise,  in which case such  choice of  California  law shall not be
deemed to deprive  Lender of any such rights and  remedies  as may be  available
under Federal law. Subject to the provisions of Section 10.13 hereof, each party
consents to the personal  jurisdiction  and venue of the state courts located in
Los Angeles,  State of California in connection with any controversy  related to
this  Agreement,  waives  any  argument  that  venue  in any  such  forum is not
convenient and agrees that any litigation initiated by any of them in connection
with this Agreement shall be venued in the Superior Court of Los Angeles County,
California.  The  parties  waive  any  right to trial by jury in any  action  or
proceeding  based  on or  pertaining  to  this  Agreement  or any of the  Credit
Documents.

     10.6 Invalid Provisions. If any provision of any Credit Document is held to
be illegal,  invalid or  unenforceable  under  present or future laws during the
term of this Credit  Agreement,  such provision shall be fully  severable;  such
Credit  Document shall be construed and enforced as if such illegal,  invalid or
unenforceable  provision had never comprised a part of such Credit Document; and
the remaining  provisions of such Credit Document shall remain in full force and
effect  and shall not be  affected  by the  illegal,  invalid  or  unenforceable
provision or by its severance from such Credit Document. Furthermore, in lieu of
each such illegal,  invalid or  unenforceable  provision there shall be added as
part of such Credit  Document a provision  mutually  agreeable  to Borrower  and
Lender as similar in terms to such illegal,  invalid or unenforceable  provision
as may be possible and be legal, valid and enforceable.

     10.7 Binding Effect.  The Credit  Documents shall be binding upon and inure
to the benefit of Borrower and Lender and their respective  successors,  assigns
and legal representatives; provided, however, that Borrower may not, without the
prior  written  consent  of  Lender,  assign  any  rights,   powers,  duties  or
obligations thereunder.

     10.8 Entirety. The Credit Documents embody the entire agreement between the
parties and supersede all prior agreements and understandings,  if any, relating
to the subject matter hereof and thereof.

     10.9 Headings.  Section  headings are for convenience of reference only and
shall in no way affect the interpretation of this Credit Agreement.

     10.10 Survival.  All representations and warranties made by Borrower herein
shall survive delivery of the Note and the making of the Loans.

     10.11 No Third Party Beneficiary. The parties do not intend the benefits of
this  Credit  Agreement  to inure to any  third  party,  nor shall  this  Credit
Agreement  be  construed  to make or render  Lender  liable to any  materialman,
supplier, contractor,  subcontractor,  purchaser or lessee of any property owned
by  Borrower,  or for  debts or  claims  accruing  to any such  persons  against
Borrower.  Notwithstanding  anything  contained herein or in the Note, or in any
other Credit Document,  or any conduct or course of conduct by any or all of the
parties  hereto,  before or after  signing  this Credit  Agreement or any of the
other  Credit  Documents,  neither  this Credit  Agreement  nor any other Credit
Document  shall be  construed  as creating  any right,  claim or cause of action
against Lender, or any of its officers, directors, agents or employees, in favor
of any materialman, supplier, contractor, subcontractor,  purchaser or lessee of
any  property  owned by  Borrower,  nor to any other person or entity other than
Borrower.

     10.12 Time. Time is of the essence hereof.

     10.13 Reference Provision.

          (a) Each  controversy,  dispute or claim ("Claim") between the parties
arising out of or relating to this Agreement and/or any of the Credit Documents,
which is not settled in writing  within ten days after the "Claim Date" (defined
as the date on which a party gives  written  notice to all other  parties that a
controversy, dispute or claim exists), will be settled by a reference proceeding
in Los Angeles,  California, in accordance with the provisions of Section 638 et
seq. of the  California  Code of Civil  Procedure,  or their  successor  section
("CCP"),  which shall  constitute the exclusive remedy for the settlement of any
Claim,  including whether such Claim is subject to the reference  proceeding and
the parties  waive their rights to initiate any legal  proceedings  against each
other in any court or jurisdiction  other than the Superior Court of Los Angeles

                                      -29-
<PAGE>
(the "Court"). The referee shall be a retired Judge selected by mutual agreement
of the  parties,  and if they cannot so agree with in thirty days (30) after the
Claim Date,  the referee shall be selected by the Presiding  Judge of the Court.
The referee  shall be appointed to sit as a temporary  judge,  as  authorized by
law. The referee  shall (a) be  requested  to set the matter for hearing  within
sixty  (60) days  after the Claim  Date and (b) try any and all issues of law or
fact and report a statement of decision  upon them,  if possible,  within ninety
(90) days of the Claim Date. Any decision rendered by the referee will be final,
binding and conclusive and judgment shall be entered  pursuant to CCP 644 in the
Court.  All discovery  permitted by this  Agreement  shall be completed no later
than fifteen (15) days before the first hearing date established by the referee.
The referee may extend such period in the event of a party's  refusal to provide
requested  discovery for any reason whatsoever,  including,  without limitation,
legal objections  raised to such discovery or unavailability of a witness due to
absence or  illness.  No party  shall be entitled  to  "priority"  in  conducing
discovery.  Depositions may be taken by either party upon seven (7) days written
notice,  and,  request  for  production  of  inspection  of  documents  shall be
responded  to within ten (10) days  after  service.  All  disputes  relating  to
discovery  which  cannot be resolved by the parties  shall be  submitted  to the
referee whose decision shall be final and binding upon the parties.

          (b)  The  referee  shall  be  required  to  determine  all  issues  in
accordance  with  existing  case  law and the  statutory  laws of the  State  of
California.  The rules of evidence applicable to proceedings at law in the State
of California will be applicable to the reference proceeding.  The referee shall
be  empowered  to  enter  equitable  as well as legal  relief,  to  provide  all
temporary and/or provisional remedies and to enter equitable orders that will be
binding upon the parties. The referee shall issue a single judgment at the close
of the  reference  proceeding  which  shall  dispose of all of the claims of the
parties  that are the subject to the  reference.  The parties  hereto  expressly
reserve the right to contest or appeal from the final judgment or any appealable
order or  appealable  judgment  entered by the  referee.  The parties  expressly
reserve the right to findings of fact,  conclusions of law, a written  statement
of  decision,  and the  right to move for a new trial or a  different  judgment,
which new trial,  if granted,  is also to be a reference  proceeding  under this
provision.

          (c) No  provision  of  Paragraphs  (a) or (b) of this  Section  10.13,
however,  shall limit the right of Lender to bring action for  possession of any

                                      -30-
<PAGE>
collateral  in any  jurisdiction,  wherever  located,  in  accordance  with  the
provisions of the Security Documents.

     10.14  Schedules  and Exhibits  Incorporated.  All  schedules  and exhibits
attached hereto,  if any, are hereby  incorporated into this Credit Agreement by
each reference thereto as if fully set forth at each such reference.

     10.15  Counterparts.  This  Credit  Agreement  may be  executed in multiple
counterparts,  each of which, when so executed,  shall be deemed an original but
all such counterparts shall constitute but one and the same agreement.

     10.16  Participations.  Lender,  at any time, shall have the right to sell,
assign, transfer, negotiate or grant participation interests in the Loans and in
any documents and instruments executed in connection  herewith.  Borrower hereby
acknowledges  and agrees that any such  disposition  shall give rise to a direct
obligation  of  Borrower  to  each  such  assignee  or  participant.  Lender  is
authorized  to  furnish  to  any  participant  or  prospective  participant  any
information  or  document  that Lender may have or obtain  regarding  the Loans,
Borrower or any guarantor of the Loans.

     IN WITNESS WHEREOF,  the undersigned have executed this Credit Agreement as
of the day and year first above written.

                                   GEL TECH, L.L.C., an Arizona limited
                                   liability company

                                By:
                                      ------------------------------------------

                                Name:
                                      ------------------------------------------

                                Title:
                                      ------------------------------------------

                                   IMPERIAL BANK, a California banking
                                   corporation

                                By:
                                      ------------------------------------------

                                Name:
                                      ------------------------------------------

                                Title:
                                      ------------------------------------------
<PAGE>
                                   EXHIBIT "A"

                             FORM OF ADVANCE NOTICE

Imperial Bank
One Arizona Center
400 East Van Buren, Suite 900
Phoenix, Arizona  85004
Attention: Edmund Ozorio
Telecopier:  (602) 261-7881

                                                           Date:_____________

                                                           Time:______________

Dear Edmund:

     The undersigned,  Gel Tech,  L.L.C.,  an Arizona limited  liability company
("Borrower"), refers to the Credit Agreement dated as of January 11, 2000 (as it
may hereafter be amended, modified,  extended or restated from time to time, the
"Credit  Agreement"),  between Borrower and Imperial Bank, a California  banking
corporation.  Capitalized  terms used herein and not  otherwise  defined  herein
shall have the meanings assigned to such terms in the Credit Agreement.

     The Borrower  hereby  gives notice that it requests an Advance  pursuant to
the Credit Agreement and sets forth below the terms of such requested Advance:

     A.   Date of Advance ____________________

     B.   Principal Amount of Advance ____________________

                                        Sincerely,

                                        GEL TECH, L.L.C., an Arizona limited
                                        liability company

                                By:
                                      ------------------------------------------

                                Name:
                                      ------------------------------------------

                                Title:
                                      ------------------------------------------
<PAGE>
                                   EXHIBIT "B"

                             COMPLIANCE CERTIFICATE
                                FOR PERIOD ENDING

                               ------------------
                              ("REPORTING PERIOD")

Imperial Bank
400 East Van Buren, Suite 900
Phoenix, Arizona  85004
Attention: Edmund Ozorio
Telecopier:  (602) 261-7881                            Date:  _____________

Dear Ladies and Gentlemen:

     This  Compliance  Certificate  refers to the Credit  Agreement  dated as of
January 11, 2000 (as it may hereafter be amended, modified, extended or restated
from time to time, the "Credit Agreement"), between Gel Tech, L.L.C., an Arizona
limited  liability  company (the  "Borrower")  and  Imperial  Bank, a California
banking  corporation.  Capitalized  terms used and not otherwise  defined herein
shall have the meanings assigned to such terms in the Credit Agreement.

     Pursuant to Section 7.1 of the Credit  Agreement,  the undersigned,  hereby
certifies that:

     1. To the  best of the  undersigned's  knowledge,  after  a  review  of the
activities  of Borrower  during the  Reporting  Period,  Borrower has  observed,
performed and fulfilled each and every obligation and covenant  contained in the
Credit  Agreement  and  no  "Event  of  Default"  thereunder  exists  [or if so,
specifying the nature and extent thereof and any corrective  actions taken or to
be taken].

     2. All  financial  statements  of Borrower  delivered to Lender  during the
Reporting Period, if any, to the undersigned's knowledge,  fairly present in all
material  respect the financial  position of the Borrower and the results of its
operations at the dates and for the periods  indicated and have been prepared in
accordance with GAAP.

     3. As of the last day of the Reporting Period,  the computations below were
true and correct:
<PAGE>

     Section 8.9 - FINANCIAL COVENANTS:

          (a)  LIQUIDITY PERCENTAGE

     Numerator: Cash on deposit with Lender                          $

                plus: Funds invested with Lender                     $

                equals: Eligible Deposit Amount                     A$

     Denominator: RLC Balance                                       B$

     A divided by B equals                                        A/B__________%

     Minimum                                                               30.0%

     (b) NET INCOME (FISCAL QUARTER STARTING 3/31/00)             (in thousands)

     Actual                                                         $
                        ------------   ------------  ------------   ------------

     Minimum                                                        $          0
                                                                    ------------

                                        GEL TECH, L.L.C., an Arizona limited
                                        liability company

                                By:
                                      ------------------------------------------

                                Name:
                                      ------------------------------------------

                                Title:
                                      ------------------------------------------
<PAGE>
                                   EXHIBIT "C"

                           BORROWING BASE CERTIFICATES

<PAGE>
                                   EXHIBIT "D"

When recorded, return to:

Streich Lang, P.A.
Renaissance One
Two North Central Avenue
Phoenix, Arizona  85004-2391
Attention: Henry A. Perras, Esq.

                          WAIVER/RELEASE OF LIEN RIGHTS

     To induce IMPERIAL BANK, a California banking corporation, whose address is
400 East Van Buren,  Suite  900,  Phoenix,  Arizona  85004  (hereinafter  called
"Lender"),  to grant  and/or  continue  financial  accommodations  to GEL  TECH,
L.L.C., an Arizona limited liability company,  whose address is 246 East Watkins
Street,  Phoenix,  Arizona 85004 (hereinafter called "Debtor"),  the undersigned
covenants and agrees as follows:

     1.  Debtor  has  executed a  Security  Agreement  dated  January  11,  2000
(hereinafter  called the  "Security  Agreement"),  granting to Lender a security
interest in that property of Debtor  described in the Security  Agreement and on
Schedule  "A"  attached  hereto and made a part hereof  (hereinafter  called the
"Collateral").  The  Collateral  includes,  but is  not  limited  to,  fixtures,
equipment, machinery, furniture and furnishings that are now or hereafter may be
installed,  placed or located on the real  property  described  on Schedule  "B"
attached hereto (hereinafter called the "Real Property"),  which is owned by the
undersigned or in which the undersigned has or claims a lien or interest.

     2. The  undersigned  hereby  consents to the Security  Agreement and to all
liens,  security  interests and rights of Lender in the Collateral  arising from
the Security  Agreement  and waives and releases all rights of levy for rent and
all liens, security interests,  claims, rights and demands of every kind against
the Collateral.

     3. The undersigned hereby grants permission to Lender, its officers, agents
and  employees,  to enter,  at any time, the Real Property or any other premises
where the  Collateral may be found and to remove the  Collateral,  provided that
Lender shall promptly  reimburse the  undersigned  for the cost of repairing any
physical  injury  done to the Real  Property  as a result of the  removal of the
Collateral.
<PAGE>
     4. The  Collateral  shall at all  times be  personal  property,  shall  not
constitute  fixtures or be part of the Real Property and shall not be subject to
distraint or execution by the undersigned or to any claim of the undersigned.

     5. The undersigned shall notify any purchaser of the Real Property, and any
subsequent  mortgagee or other encumbrance holder or claimant,  of the existence
of this  Waiver/Release  Agreement,  which shall be binding upon the  executors,
administrators, successors, assigns and transferees of the undersigned and shall
inure to the benefit of the successors and assigns of Lender.

     6. In the event of any default  under its lease or  agreement  with Debtor,
then  prior  to:  (i)  terminating  its lease or  agreement  with  Debtor,  (ii)
incurring any  attorneys'  fees, or (iii)  incurring any other expenses which it
would,  but for this  provision,  charge Debtor,  the  undersigned  shall notify
Lender in writing at the above  address of such default and allow Lender 30 days
after  receipt of such  notice to remedy  any such  default on behalf of Debtor;
provided, however, that if the default cannot reasonably be remedied within that
30-day period,  the undersigned  shall not terminate its lease or agreement with
Debtor or incur any  attorneys'  fees or other  expenses so long as Lender shall
commence  to remedy  the  default  within  that  30-day  period  and  thereafter
diligently prosecute the remedy to completion.

     IN WITNESS  WHEREOF,  the undersigned has executed this Agreement this ____
day of ____________________.

                                             -----------------------------------

                                             -----------------------------------

                                By:
                                      ------------------------------------------

                                Name:
                                      ------------------------------------------

                                Title:
                                      ------------------------------------------

                                Address:

                                             -----------------------------------

                                             -----------------------------------
<PAGE>
STATE OF ____________________ )
                              ) ss.
County of ___________________ )

     The  foregoing  instrument  was  acknowledged  before me this  _____ day of
__________________________,  by __________________________________________,  the
____________________________  of  ______________________________________________
_______________________, on behalf of said ________________.

     IN WITNESS WHEREOF, I hereunto set my hand and official seal.

                                      ------------------------------------------
                                      Notary Public

My commission expires:

----------------------
<PAGE>
                                  SCHEDULE "A"

                             COLLATERAL DESCRIPTION

     All of the property described below in, to or under which Debtor now
has or hereafter acquires any right, title or interest,  whether present, future
or contingent,  and in Debtor's  expectancy to acquire such property (all of the
property described on this schedule is herein called the "Collateral"):

          (a) All  accounts,  general  intangibles,  instruments,  documents and
     chattel paper  (including all accounts  receivable,  notes,  drafts,  lease
     agreements and security  agreements),  and all goods,  if any,  represented
     thereby, whether now existing or hereafter acquired or created from time to
     time in the course of Debtor's business;

          (b) All inventory now owned or hereafter acquired, including all goods
     held for sale or lease in Debtor's business, as now or hereafter conducted,
     and all  materials,  work  in  process  and  finished  goods  used or to be
     consumed in Debtor's  business (whether or not the inventory is represented
     by  warehouse  receipts  or bills of lading or has been or may be placed in
     transit or delivered to a public warehouse);

          (c) All  equipment  now owned or  hereafter  acquired,  including  all
     furniture, fixtures, furnishings,  vehicles (whether titled or non-titled),
     machinery,  materials and  supplies,  wherever  located,  including but not
     limited  to such  items  described  on the  collateral  schedule  (if  any)
     attached hereto and by this reference made a part hereof, together with all
     parts,   accessories,   attachments,   additions  thereto  or  replacements
     therefor;

          (d) All  instruments,  documents  and  chattel  paper  now  held by or
     hereafter delivered to Secured Party, together with all property rights and
     security  interests  evidenced thereby,  all increases thereof  (including,
     without  limitation,  stock  dividends),  all  profits  therefrom  and  all
     transformations thereof,  including but not limited to such items described
     on the collateral  schedule (if any) attached  hereto and by this reference
     made   a   part   hereof   (all    hereinafter    called   the    "Specific
     Collateral-in-Possession");

          (e) All tax refund claims,  all policies or  certificates of insurance
     covering any of the  Collateral,  all  contracts,  agreements  or rights of
     indemnification,  guaranty or surety relating to any of the Collateral, and
     all claims,  awards,  loss payments,  proceeds and premium refunds that may
     become payable with respect to any such policies, certificates,  contracts,
     agreements or rights;
<PAGE>
          (f) All ledger cards, invoices, delivery receipts,  worksheets,  books
     of accounts, statements,  correspondence,  customer lists, files, journals,
     ledgers and records in any form,  written or  otherwise,  related to any of
     the Collateral;

          (g)  Tradenames,   trademarks,  trademark  applications,   copyrights,
     copyright  applications,  service  marks  and  the  entire  goodwill  of or
     associated with the business now or hereafter conducted by the Debtor;

          (h) All claims for loss or damage to or in connection  with any of the
     Collateral,  all  other  claims  in any  form  for the  payment  of  money,
     including  tort claims,  and all rights with respect to such claims and all
     proceeds thereof;

          (i) All accessions to any of the Collateral; and

          (j)  All  products  and  proceeds  of the  Collateral,  in  any  form,
     including  all  proceeds  received,  due or to  become  due from any  sale,
     exchange  or  other  disposition  of any of the  Collateral,  whether  such
     proceeds  are cash or  noncash  in nature  or are  represented  by  checks,
     drafts, notes or other instruments for the payment of money.

All "Collateral Schedules," if any, attached hereto are hereby incorporated into
this collateral description as if set forth here and at each reference thereto.
<PAGE>

                                  SCHEDULE "B"

                                  REAL PROPERTYEXHIBIT 10.20

                                 LEASE AGREEMENT

     THIS LEASE AGREEMENT,  made on the 3rd day of June, 1999, by and between KA
REAL ESTATE ASSOCIATES, LLC, a Maryland corporation, having an office address at
10324 South Dolfield Road,  Owings Mills,  Maryland  21117  (hereinafter  called
Landlord) and AVESIS INCORPORATED having an office at 10324 South Dolfield Road,
Owings Mills, Maryland 21117 (hereinafter collectively called Tenant).

     WITNESSETH:  That in consideration  of the rents,  covenants and agreements
herein  contained,  on the part of Tenant to be performed,  Landlord does hereby
lease unto the said  Tenant the  premises  known as 10324 South  Dolfield  Road,
Baltimore  County,  Maryland 21117 (Office),  as shown on Exhibit A, space plan,
containing approximately 1,500 square feet (Premises).

TERM      The  term of the  lease  shall  be for five  (5)  years  beginning  on
          November 1, 1999 and terminating on October 31, 2004.

RENT      Tenant shall pay rent to Landlord at the rental rate of TWELVE DOLLARS
          TWENTY-FIVE CENTS ($12.25) cents per square foot of floor space in the
          Premises or  EIGHTEEN  THOUSAND  THREE  HUNDRED  SEVENTY-FIVE  DOLLARS
          ($18,375.00)  for the first year of this lease.  The rental rate shall
          increase by THREE PERCENT (3%) per annum for each  subsequent  year of
          the  lease.  Rent is to be  paid in  equal  monthly  installments,  in
          advance, on the first day of the month as follows:  Rent shall be paid
          to Landlord at its office at 10324 South Dolfield Road,  Owings Mills,
          Maryland  21117,  or to such other appointee as Landlord may from time
          to time designate in writing.

THE TENANT COVENANTS AND AGREES WITH THE LANDLORD AS FOLLOWS:

     1. RENT PAYMENTS.  Tenant shall pay rent when due, without deduction or set
off.

     2. USE.  Tenant shall use and occupy the Premises  solely for the following
purposes: administrative offices and for no other purpose or purposes.

     3.  UTILITIES/TRASH/JANITORIAL.  (a) Tenant shall pay for its proportionate
share of all gas,  electricity,  telephone and other  utilities used in or about
the Premises for the  aforesaid  permitted  purpose.  Accounts must be opened in
Tenant's name with the company that supplies the utilities,  except with respect
to water and sewer (if no separate meter is provided)  Landlord will bill Tenant
monthly  or  quarterly  on the  basis of a meter  reading  and  Tenant  will pay
Landlord  directly for said water and sewer  charges  within ten (10) days after
receipt of Landlord's  billing.  The parties  acknowledge  that the Premises are
served by a separate meter for water and sewer.

                    (b) Tenant hereby covenants,  at its expense, to provide its
               own janitorial service, and to keep the Premises, both inside and
               out, clean at all times and agrees that it will at all times keep
               such  Premises in a clean,  neat and  orderly  manner and that it
               will  remove all refuse,  garbage and trash from the  interior of
               the Premises and the adjacent areas and will see that the same is
               removed  daily,  at its  expense.  Tenant  shall  provide  at its
               expense,  trash receptacles  required by Landlord,  including but
               not limited to commercial trash dumpsters or similar receptacles.
               All trash  receptacles  must be approved by Landlord and shall be
               located in such places as Landlord shall designate.  Tenant shall
               maintain such receptacles and the designated  location thereof in
               a neat, clean and secure condition at all times. Tenant shall, at
               its expense,  provide for the pickup and removal of its trash. In
               the event Tenant's trash is not removed in the manner  aforesaid,
               Landlord  shall be  entitled to remove or cause to be removed the
               trash of tenant and Tenant  shall pay to Landlord  as  additional
               rent the cost incurred by Landlord for such removal,  plus twenty
               percent (20%) overhead and administrative expenses.
<PAGE>
     4. COMPLIANCE WITH LAWS.  Tenant shall observe,  comply with and execute at
its expense,  all laws and valid and lawful rules,  requirements and regulations
of the United States,  State, City and County in which the Premises are located,
and of any and all governmental authorities or agencies and of any board of fire
underwriters  or other  similar  organization,  respecting  the Premises  hereby
leased and the manner in which said Premises are or should be used by Tenant.

     5.  ASSIGNMENT/SUBLETTING.  Tenant shall not assign this Lease, in whole or
in part,  nor  sublet the  Premises,  or any part or  portion  thereof,  without
Landlord's  prior  written  consent,  which  consent  shall not be  unreasonably
withheld.  If such  assignment or  subletting is permitted,  Tenant shall not be
relieved  from any  liability  whatsoever  under this Lease.  Any  transfer of a
majority of ownership in Tenant,  if Tenant is a corporation  or a  partnership,
even by merger or consolidation,  shall be deemed an assignment pursuant to this
Section.

     6. FLOOR LOAD.  Tenant shall not load the Premises hereby leased beyond its
present carrying  capacity.  Any damage resulting from overloading the floors or
walls of the Premises will be charged to Tenant.

     THE PARTIES HERETO FURTHER COVENANT AND AGREE WITH EACH OTHER AS FOLLOWS:

     7.  TENANT'S  INSURANCE;  INDEMNITY.  (a) Tenant shall  indemnify  and save
harmless  Landlord,  its  successors or assigns,  from all claims and demands of
every  kind  that may be  brought  against  it,  them,  or any of them for or on
account of any  damage,  loss or injury to persons or  property  in or about the
Premises  during  the  continuance  of it  tenancy,  or  during  the time of any
alterations,  repairs or improvements or restorations to said property by Tenant
and arising in connection  therewith and from any and all costs and expenses and
other charges which may be imposed upon Landlord,  its successors or assigns, or
which it or they may be obligated to incur in consequence thereof.  Tenant shall
at all times carry and pay for a public liability  insurance  policy  protecting
Landlord and specifically  covering the above indemnity agreement on the part of
Tenant,  with limits of  $1,000,000.00  and $3000,000.00 for personal injury and
$100,000.00 for property  damage,  and will furnish Landlord with certificate of
such policy and any renewal thereof, naming Landlord as a certificate holder and
an Additional Insured. Such policy shall provide that Landlord will be given ten
(10) days' notice of any cancellation,  modification or surrender.  All personal
property and fixtures in the Premises shall remain at Tenant's sole risk. Tenant
shall  insure such  property  and  fixtures  against  loss or damage by fire and
casualties  ordinarily  included in the extended coverage  endorsement in use in
Maryland in an amount equal to 100% of the replacement  value thereof.  Landlord
shall  not be  liable  for  any  damage  or  loss  arising  from  the  bursting,
overflowing or leaking of the roof or of water, sprinkler, sewer or steam pipes,
or for  malfunctioning  heating,  air conditioning or plumbing  fixtures or from
electric  wire or fixtures or arising  from any other cause  whatsoever,  unless
caused by Landlord's negligent or willful misconduct.

          (b)Tenant  shall not do anything in or about said  Premises  that will
     contravene or affect any policy of insurance  against loss by fire or other
     hazards,  including but not limited to, public  liability,  now existing or
     which Landlord may hereafter place thereon,  or which will prevent Landlord
     from  procuring  such  policies in companies  acceptable  to Landlord;  and
     Tenant shall do  everything  reasonably  possible and  consistent  with the
     conduct  of  Tenant's  business,  as above  limited,  so as to  obtain  the
     greatest  possible  reduction  in the  insurance  rates for Landlord on the
     Office of which the Premises hereby leased are a part, and Tenant
<PAGE>
     further agrees to pay, as additional rental, any increase in the premium of
     any  insurance on the  Premises  hereby  leased (or if the Premises  hereby
     leased are a part of a complex,  then any  increases  in the premium of any
     insurance on said entire  complex)  caused by the occupancy of Tenant,  the
     nature of the business carried on by Tenant in said Premises,  or otherwise
     resulting  from any act of  Tenant,  its  agents,  servants,  employees  or
     customers.

          (c)  Tenant   hereby   releases   Landlord   from  all   liability  or
     responsibility to Tenant or any person claiming by, through or under Tenant
     by way of subrogation or otherwise,  for any injury,  loss or damage to the
     Premises  or any part  thereof or any  property  of Tenant in or around the
     Premises, or to Tenant's business irrespective of the cause of such injury,
     loss or damage,  and Tenant shall require its  insurer(s) to include in all
     Tenant's insurance policies which could give rise to a right of subrogation
     against Landlord a clause or endorsement whereby the insurer(s) shall waive
     any rights of subrogation against Landlord.

     8.  ALTERATIONS.  Tenant shall not make any  alterations  (which term shall
include floor and wall coverings) to the Premises without the written consent of
Landlord.  If Tenant desires to make any such alterations,  the same shall first
be  submitted  to  and  approved  by  Landlord,  which  approval  shall  not  be
unreasonably withheld, and shall be done by Tenant at it own expense, and Tenant
agrees that all such work shall be done in a good and workmanlike  manner,  that
the  structural  integrity  of the Premises  shall not be impaired,  and that no
liens shall attach to the Premises by reason thereof.

     9. END OF TERM.  Unless  Landlord  shall  elect that all or any part of the
alterations,  referred to in or  contemplated  by the  provisions  of Section 8,
shall remain, the Premises shall be restored to their original condition (except
as to any part of said  alterations  which  Landlord  shall  elect to remain) by
Tenant  before the  expiration  of its tenancy,  at its own expense,  and Tenant
shall  repair  any damage  resulting  from the  installation  or removal of such
alterations.

     Notwithstanding  the right of Landlord to require the removal thereof,  any
such  alterations  shall  become the  property  of  Landlord as soon as they are
affixed to the  Premises  and all right,  title and  interest  therein of Tenant
shall  immediately  cease unless  otherwise  agreed to in writing.  The Landlord
shall have the sole right to collect any insurance for damage of any kind to any
of such alterations upon the said Premises by Tenant.  If the making of any such
alterations,  or the obtaining permits or franchise therefor,  shall directly or
indirectly result in a franchise, minor privilege, tangible personal property or
other  similar  tax  or  assessment,  such  tax or  assessment  shall  be  paid,
immediately upon its levy, by Tenant.

     10.  MAINTENANCE.  Tenant shall,  during the term of this Lease,  keep said
Premises and appurtenances  (including all appliances and facilities,  doors and
doorways,  windows,  window  frames,  plate  glass,  and  the  heating  and  air
conditioning  system) in good order and  condition  and will make or pay for its
proportionate share of all necessary repairs thereto, and further,  with respect
to the heating and air conditioning  system,  while Landlord will make available
to Tenant any warranties with respect to said equipment which Landlord receives,
Tenant will be responsible at the expiration of the warranty period, if any, for
maintaining  a  maintenance  contract  on  said  equipment  with  a  heating/air
conditioning contractor acceptable to Landlord.  While Tenant is responsible for
keeping its Premises in good order and repair, Landlord specifically agrees that
it will make any  necessary  repairs to the  exterior  walls of the  building of
which the  Premises  are a part and to the roof of said  building,  and further,
that  Landlord will maintain the plumbing and  electrical  systems  serving said
building to the point of entry into the  Premises,  after being  notified of the
need for such repairs by Tenant,  and provided that none of the required repairs
have been caused by the  negligent  act or omission of Tenant,  its employees or
agents. Landlord may enter the Tenant's Premises at all reasonable times to make
repairs  required  hereunder,  or to inspect the  Premises in order to ascertain
that Tenant is carrying out its obligations with respect to  maintenance/repair.
Tenant will also not  obstruct  any  walkways  made  available to it. The Tenant
will, at the expiration of the term or at the sooner termination  thereof by any
forfeiture  or  otherwise,  deliver up the  Premises  in the same good order and
condition as they were at the beginning of the tenancy, reasonable wear and tear
excepted.
<PAGE>
     11.  TAX   ESCALATOR.   Tenant  shall  pay  as  additional   rent  Tenant's
proportionate  share of the real estate taxes  assessed  against the land and/or
building(s)  of the Office.  In the event of any  increases in real estate taxes
resulting from government assessments, improvements, alterations or additions as
made by Tenant,  Tenant  shall pay one hundred  percent  (100%) of the amount of
said increase.  If Tenant pays its  proportionate  share of the taxes based on a
bill that is appealed  by  Landlord  and later  reduced,  then  Tenant  shall be
entitled to a credit equal to its proportionate  share of any refund,  after all
costs or fees incurred by Landlord in contesting  the real estate tax assessment
are deducted.  For purposes of calculating  Tenant's  "proportionate  share" the
real estate tax bill will be  multiplied  by a fraction,  the numerator of which
shall be the square  footage  occupied by Tenant for the real estate tax year in
question  and the  denominator  of which  shall be the  total  leaseable  square
footage of the Office, occupied or ready for occupancy.  "Taxes" or "real estate
taxes" as used herein shall include,  but not by way of  limitation,  all paving
taxes,  special paving taxes,  Metropolitan  District  Charges,  and any and all
other  benefits or  assessments  which may be levied on the Premises or the land
and/or  building(s) in which the same are situate,  as well as any and all costs
or fees incurred by Landlord in contesting any real estate tax  assessment,  but
shall not include any income tax on the income or rent  payable  hereunder.  Any
payment due hereunder  shall be deemed to be additional  rental pursuant to this
Lease and shall be paid within ten (10) days of Landlord's billing.

     12. INSURANCE ESCALATOR. Landlord may, in its reasonable business judgment,
maintain  insurance on the property  including  but not limited to equipment and
systems in or  pertaining  to the  building or property  and  including  but not
limited to public liability  insurance,  property damage  insurance,  automobile
insurance, sign insurance, fire and extended coverage insurance, rent insurance,
boiler liability and casualty  insurance,  flood and earthquake  insurance,  and
plate glass insurance.  For any insurance maintained by Landlord with respect to
the property  and/or its  equipment,  Tenant  agrees to pay as  additional  rent
Tenant's  proportionate  share of said premiums for any insurance carried on the
property or any portion thereof.  If this Lease shall be in effect for less than
a full insurance  year,  Tenant shall pay as additional  rent its  proportionate
share of the  insurance  premium based upon the number of months that this Lease
is in effect. For purposes of calculating  Tenant's  "proportionate  share", the
insurance premium bill will be multiplied by a fraction,  the numerator of which
shall be the  square  footage  occupied  by  Tenant  for the  insurance  year in
question,  and the denominator of which shall be the average of all the leasable
square footage in the building occupied by Tenant.

     13. DEFAULT.  If Tenant fails to pay fixed rental or any other sum required
by the terms of this Lease to be paid by Tenant  when the same shall be due,  or
if Tenant shall  abandon the Premises,  then  Landlord  shall have the immediate
right, without notice, to make distress therefor and, upon such distress, in the
Landlord's discretion, this tenancy shall terminate. If any fixed rental payment
required  to be paid by Tenant  shall be in  arrears  more  than ten (10)  days,
Tenant shall be liable for a late charge of fifteen  percent (15%) of the amount
in arrears, which charge shall be collectible as rent. In case Tenant shall fail
to comply with any of the other  provisions,  covenants  or  conditions  of this
Lease on its part to be kept and performed,  and such default shall continue for
a period of ten (10) days after written  notice thereof shall have been given to
Tenant by  Landlord,  or if Tenant fails to pay any sum of money due to Landlord
or others under the terms hereof, when and as such payment is due, then upon the
happening of any such events, the term of this Lease, at the option of Landlord,
shall cease and determine and, from thenceforth,  it shall and may be lawful for
Landlord to re-enter  into and upon the Premises,  or any part  thereof,  and to
repossess  and  hold the same as if this  Lease  had  never  been  executed.  If
Landlord incurs any expenses in proceeding  against Tenant for any default under
this Lease,  then Tenant shall pay Landlord all reasonable  expenses,  including
counsel and court costs fees incurred with respect to such default.
<PAGE>
     In addition  to the  preceding,  if Tenant  fails to comply with any of the
other  provisions,  covenants or conditions  of this Lease,  and Tenant has been
given notice by Landlord and reasonable opportunity to cure, then thereafter and
notwithstanding  anything  in this  Lease  to the  contrary,  Landlord  may cure
Tenant's  default and Tenant shall owe Landlord any monies which Landlord spends
as a result of Landlord  curing  Tenant's  default,  plus fifteen  percent (15%)
administrative/overhead costs.

     14. CASUALTY. In case of the total destruction of the Premises by fire, the
elements  or other  cause,  or of such damage  thereto as shall  render the same
totally  unfit for  occupancy by Tenant,  the payment of the rent due  hereunder
shall be abated for the period of  untenantability,  or, at  Landlord's  option,
Landlord may declare that this Lease, together with the payment of rent then due
and a proportionate  part thereof to the date of surrender,  shall terminate and
be at an end. If any cause mentioned in the preceding  sentence shall render the
Premises partly untenantable,  then Landlord shall, at its own expense,  restore
the  Premises  with  all  reasonable  diligence,  and the rent  shall be  abated
proportionately  for the period of untenantability  and the part of the Premises
untenantable  until such improvements  shall have been fully restored;  provided
that,  if neither the  Premises nor any part  thereof  shall be rendered  either
wholly or partly untenantable,  Landlord shall, at its own expense,  restore the
Premises with all reasonable diligence,  but the rent shall not be abated to any
extent  whatsoever;  and provided further that if the cost of restoration of any
such  damage to the  Premises  (based on the  estimate of  Landlord's  insurance
adjuster) exceeds one-half (1/2) of the rent reserved hereunder from the date of
the  occurrence of the damage to the expiration of the then current term of this
Lease, then Landlord may, at its option, cancel this Lease.

     15. RECEIVERSHIP.  In the event of the appointment of a receiver or trustee
for Tenant by any court,  Federal or state, in any legal proceedings  instituted
by or against it, including  proceedings  under any provisions of the Bankruptcy
Act, if the  appointment  of such receiver or such trustee is not vacated within
thirty (30) days, or if Tenant be  adjudicated  bankrupt or insolvent,  or shall
make an assignment  for the benefit of its  creditors;  then, and in any of said
events,  Landlord  may,  at is  option,  terminate  this Lease by ten (10) days'
written notice, and re-enter upon the Premises.

     16. POSSESSION.  In case possession of or the right to use the Premises, in
whole or in part,  cannot be given to Tenant for any reason whatever  (including
inability to obtain any  occupancy or other  necessary  permit) on or before the
date specified for the beginning of the term,  then Landlord agrees to abate the
rent  proportionately  until possession is given to Tenant, and Tenant agrees to
accept such pro rata  abatement as liquidated  damages for the failure to obtain
possession.  If Landlord is unable to give Tenant  possession of or the right to
use the  Premises  for more than one  hundred  eighty  (180) days after the date
specified for the beginning of the term, then either party may cancel this Lease
by written notice to the other party, and there shall be no further liability of
either party with respect to this Lease.

     17. SIGNS, ETC. Tenant shall not place or permit any signs, lights, awnings
or poles on or about the exterior of the Premises without the written consent of
Landlord,  and, if such consent is given,  then Tenant  agrees to pay any permit
fees and minor  privilege  or other tax  therefor.  At its own cost and expense,
Tenant shall install  exterior  signage over its front and rear entrances to the
Premises.  Such signage shall be of Landlord/building  standard color,  material
and size and the  placement  of such  signage  shall be  subject  to  Landlord's
approval. Tenant further covenants and agrees that it will not paint or make any
change in or on the outside of the Premises  without the  permission of Landlord
in writing.  Tenant agrees that it will do nothing on the outside of Premises to
change the uniform architecture,  paint or appearance of said Premises,  without
the  consent of  Landlord  in  writing.  In the event of any  violation  of this
Section 17 by Tenant, then Landlord may take such action as it sees fit to abate
such  violation,  and Tenant  shall pay to  Landlord  all  expenses  incurred by
Landlord in taking such action.
<PAGE>
     18.  RULES AND  REGULATIONS.  Tenant  covenants  and agrees to abide by the
rules and regulations set forth below in this lease, and any reasonable  changes
and  additions  thereto;  and the same shall be deemed to be  covenants  of this
Lease.

     19. LANDLORD ACCESS. Landlord shall have the right to place a "For Sale" or
"For Rent" sign on any portion of the Premises for one hundred eighty (180) days
prior to the final  termination of this Lease,  and may show the Premises at all
reasonable times to prospective tenants and purchasers.

     20.  LANDLORD  LIABILITY.  Tenant  shall carry  standard  fire and extended
coverage  insurance on those parts of the Premises  and the  facilities  therein
which were  originally  constructed  and/or  installed  by Tenant or at Tenant's
expense  and on all other  leasehold  improvements  made by it, and on its trade
fixtures, merchandise and other personal property in the Premises for their full
replacement value.  Landlord shall not be liable to Tenant for any damage to any
such  property  from any  cause,  unless  (i) such  damage is due to  Landlord's
negligence,  and (ii) such  damage is  caused by an  occurrence  which is not an
insured hazard under the standard fire and extended coverage  insurance which is
available for insuring such property of Tenant at the time of the loss; it being
understood that it is not the intention of the parties that Landlord be relieved
from liability to Tenant for negligence contrary to any statute or public policy
of the State of  Maryland,  but rather that  Tenant  avail  itself of  available
insurance  coverage  without  subjecting  Landlord to liability  for losses that
could have been insured,  and without subjecting  Landlord to subrogation claims
of any  insurer.  The  Landlord  shall not be liable  to  Tenant  for  damage to
Tenant's  property due to the negligent or intentional  acts of any other tenant
in the complex of which the Premises is a part, or to any condition  existing on
or  emanating  from the  Premises  of any other  tenant  which is not  caused by
Landlord  or its agents or  contractors,  nor shall  Tenant be  entitled  to any
abatement  of rent or to claim an  actual  or  constructive  eviction,  whole or
partial,  permanent or temporary,  by reason of any such  condition or emanating
from such other tenant's Premises.

     21. ACCESS. Subject to Landlord not unreasonably  interfering with Tenant's
business,  Landlord,  and its agents,  servants  and  employees,  including  any
builder or contractor employed by Landlord,  shall have, and Tenant hereby gives
them and  each of them,  the  absolute  and  unconditional  right,  license  and
permission,  at any and all reasonable  times,  and for any  reasonable  purpose
whatsoever,  to enter through,  across or upon the Premises hereby leased or any
part thereof and, at the option of Landlord,  to make such reasonable repairs to
or changes in the Premises as Landlord may deem necessary or proper.

     22.  EXPIRATION.  The term of this Lease shall  expire on October 31, 2004,
without  the  necessity  of any notice by or to any of the  parties  hereto.  If
Tenant shall occupy the Premises  after such  expiration,  in the absence of any
written  agreement to the  contrary,  Tenant shall hold the Premises as a tenant
from  month to month,  subject  to all the other  terms and  conditions  of this
Lease,  except that the fixed rent shall be one and one-half  (1-1/2)) times the
highest  monthly rental  reserved in this Lease,  provided that Landlord  shall,
upon such expiration, be entitled to the benefit of all public general or public
local  laws  relating  to the speedy  recovery  of the  possession  of lands and
tenements  held over by  tenants  that may be now in force or may  hereafter  be
enacted,  tenant  hereby  waiving  the  necessity  of any  written  notice  as a
condition  precedent to the institution of any action for speedy recovery of the
Premises by Landlord.

     23.  CONDEMNATION.  If condemnation  proceedings are instituted against the
Premises and title taken by any  federal,  state or  municipal  body,  then this
Lease  shall  terminate  as of the  date  possession  vests  in  the  condemning
authority. Tenant shall not be entitled to share in any part of the award, which
may be  received by Landlord  for the taking of the fee and  Tenant's  leasehold
estate.  This Section 23 shall apply also in case of any sale of the Premises by
Landlord to a condemning  authority under threat of the exercise of the power of
eminent domain.
<PAGE>
     24.  SUBORDINATION.  Landlord  shall have the right to place a mortgage  or
mortgages on the Premises and the property of which the Premises is a part,  and
this Lease shall be  subordinate  to any such  mortgage or mortgages or superior
thereto,  as the  mortgagee(s)  may  elect  from  time to time.  Notice  of such
election shall be given to tenant in connection with any mortgage foreclosure.

     25. COMMON AREAS. (a) Tenant, its agents,  servants,  employees,  customers
and invitees,  shall have the non-exclusive right to use, in common with others,
the automobile parking areas,  driveways,  and pedestrian walkways,  and for all
other  areas,  space,  facilities,  equipment  and  signs,  to the  extent  made
available by Landlord for the common and joint  non-exclusive use and benefit of
landlord,  Tenant  and other  tenants  and  occupants  of the  Office  and their
respective  employees,   agents,   subtenants,   customers  and  other  invitees
(hereinafter  collective called "common areas") from time to time made available
by  Landlord in the complex of which the  Premises  are a part,  subject to such
rules and  regulations as Landlord may prescribe.  All employees of Tenant shall
park only in spaces designated by Landlord for employee parking,  if Landlord so
requires; and Tenant shall furnish to Landlord,  promptly upon request,  license
numbers,  makes and  colors  of  vehicles  used by  Tenant's  employees.  If any
employee of Tenant  parks a vehicle in any area other than that  designated  for
employee  parking,  Tenant shall pay Landlord  $10.00 per day (or part) for each
vehicle so parked if Landlord  shall have given written notice or oral notice of
such parking violation to a responsible official of Tenant on the premises,  and
such  violation is not  immediately  corrected.  Landlord  reserves the right to
limit  the  number  of  parking  spaces  and the  location  of said  spaces,  in
Landlord's sole discretion.

          (b) Landlord shall have the exclusive  management and control over the
     common areas; shall keep the parking areas and driveways substantially free
     of ice, snow and debris;  shall keep the common areas in reasonable  repair
     and shall care for all  landscaping;  and may change  the  arrangement  and
     location of parking areas and driveways as it sees fit.

          (c) Landlord  (subject to  reimbursement  as hereinafter  set forth in
     this section)  will, at its expense,  operate and maintain,  or cause to be
     operated and  maintained,  the common areas  (hereinabove  defined) and the
     Office in a manner  deemed  reasonable  and  appropriate  by Landlord.  For
     purposes  of this  Lease,  "common  area  costs"  shall be  those  costs of
     operating and  maintaining  or of causing the operation and  maintenance of
     the  common  areas and the  Office of which the  Premises  form a part in a
     manner deemed by Landlord to be reasonable and appropriate,  including, but
     not limited to, all costs and expenses,  whether  expended or incurred,  of
     repairing,  lighting,  cleaning,  landscaping,   painting  and  maintaining
     (including,  but not limited to,  preventive  maintenance);  removing snow,
     ice, rubbish and debris,  including dumpster rental and/or pick-up charges,
     inspecting, policing, providing security and regulating traffic; rental and
     depreciation  of machinery and equipment and other  non-real  estate assets
     used in the operation and  maintenance  of the property;  repairing  and/or
     replacing of paving, curbs, walkways, landscaping,  drainage, on-site water
     lines, sanitary sewer lines, storm water lines,  electrical lines and other
     equipment serving the Office from which the Premises or any part thereof is
     constructed or is to be constructed; electricity, steam, water and/or other
     fuel used in the common areas; heating, ventilating and air conditioning in
     enclosed common areas, if any; cleaning and janitorial  supplies  including
     equipment, uniforms, supplies and sundries used in connection therewith, if
     such services are provided, sales or use taxes on supplies or services; any
     parking  surcharges that may result from any  environmental  or other laws,
     rules, regulations, guidelines or orders; the gross compensation (including
     fringe  benefit  expenses  and  related  payroll  taxes)  of all  personnel
     required to  supervise  and  accomplish  the  foregoing,  together  with an
     administrative  charge  equal to 15% of the total of all common  area costs
     specifically  referred to above.  In the event of any dispute as to whether
     an item  represents  an expense or a capital  item,  Landlord's  accounting
     practices shall be determinative and binding on the parties.
<PAGE>
                    (d)  Tenant   shall  pay  as   additional   rent,   Tenant's
               proportionate   share  of  the  common  area  costs  incurred  by
               Landlord.  For purposes of  calculating  Tenant's  "proportionate
               share",  the  common  area costs  incurred  by  Landlord  will be
               multiplied  by a fraction,  the  numerator  of which shall be the
               square  footage  occupied by Tenant for the common area cost year
               in  question  and the  denominator  of which  shall be the  total
               leaseable  square  footage of the  Office,  occupied or ready for
               occupancy.  Any  payment  due  hereunder  shall be  deemed  to be
               additional rent payable by Tenant pursuant to this section within
               fifteen (15) days of Landlord's billing.  Additional rent payable
               by Tenant  pursuant to this section  shall be  pro-rated  for any
               fractional  part of the year  during  the last year of the Lease.
               Unless  Tenant  shall  have  given  Landlord  written  notice  of
               exception  to any  billing by  Landlord  within  thirty (30) days
               after delivery  thereof,  the same shall be deemed conclusive and
               binding on Tenant.  Landlord shall supply Tenant with a statement
               showing the amount and  computation of such  additional rent upon
               written request therefore by Tenant delivered within fifteen (15)
               days of receipt of the  Landlord's  billing  provided for in this
               subsection.

     26.  SECURITY  DEPOSIT.  Tenant shall  deposit with Landlord the sum of ONE
THOUSAND FIVE HUNDRED THIRTY-ONE DOLLARS AND TWENTY-FIVE CENTS ($1,531.25) to be
held by  Landlord a security  for the  payment  of rent and the  performance  of
Tenant's other obligations under this Lease.  Landlord may (but need not) invest
the deposit in interest  bearing  securities  or accounts  and  interest  earned
thereon,  if any,  shall  belong to Landlord.  The deposit  shall be returned to
Tenant  within  sixty  (60) days after the  termination  of this Lease if all of
Tenant's  obligations  hereunder  are performed to the date of  termination.  If
tenant  defaults in the  performance or observance of any obligation on its part
under  this  Lease,  Landlord  may apply the  deposit  to payment of the rent in
default or other money  arrearage,  and/or to the damages and costs  incurred by
Landlord  as a result of any  default,  and/or to costs  incurred by Landlord in
rectifying  any default,  and/or to the  prepayment  of rent for any  subsequent
period of the term,  and Tenant shall promptly  thereafter  restore the security
deposit to the original amount above  specified.  The right of Landlord to apply
the security  deposit as above  specified shall not be construed as a limitation
upon Landlord's  right to invoke any other remedy  available under this Lease or
at law or equity for breach of this  Lease,  or to  collect  the full  amount of
damages  owing by Tenant on account of such  breach.  If, by reason of  Tenant's
default under this Lease,  Landlord terminates this Lease either before or after
the  commencement  of the term or re-enters the Premises or if Tenant holds over
at the end of the term,  Landlord may retain the security  deposit as liquidated
damages  (applying it against the damages  which it suffers but without  waiving
its right to  recovery of  additional  damages to which it may be  entitled)  or
apply it to the  monthly  installments  of rent  hereunder  in inverse  order of
accrual.

     27.  NOTICES.  Any  notice,  demand,  consent,  approval,  request or other
communication  or document to be provided  hereunder  to a party hereto shall be
(a) in  writing,  and (b) deemed to have been  provided  (i) (1) 48 hours  after
being sent as  certified  or  registered  first class mail in the United  States
mails, postage prepaid,  return receipt requested,  or (2) the next business day
after  having  been  deposited  (in time for  delivery  by such  service on such
business day) with Federal Express or other national  courier  service,  in each
case to the address of such  parties set forth  herein or to such address in the
United States of America as such party may designate from time to time by notice
to the other party hereto, (ii) (if such party's receipt thereof is acknowledged
in writing) upon being given by hand or other actual  delivery to such party, or
(iii) upon being sent by telecopier to such telecopier  number as such party may
designate from time to time by notice to the other party hereto.

     28. TENANT  BUILD-OUT.  Upon the  commencement  of this Lease,  Tenant will
accept deliver of the Premises from Landlord "As Is".

     29.  RELOCATION.   Landlord  reserves  the  right  to  relocate  Tenant  at
Landlord's cost to comparably  sized Premises  within the Office.  Landlord will
provide Tenant with no less than 120 days written
<PAGE>
notice of its  intention  to  relocate  Tenant to new  Premises.  Any  notice to
relocate Tenant shall be subject to the following terms and conditions:

          (a)  This  Lease  will be  amended  effective  as of the  date of such
     relocation  by  deleting  the  description  of the  original  Premises  and
     substituting for it a description of the new Premises.

          (b)  Tenant  will  pay rent and  additional  rent/charges  for the new
     Premises  at the same rate per square  foot that is then  payable  for such
     charges hereunder.

          (c) Landlord shall bear the  reasonable  costs of moving Tenant to the
     new Premises, and shall also bear the cost of constructing the new Premises
     in a manner identical or substantially identical to Landlord's construction
     obligations  with respect to the  original  Premises,  and  Landlord  shall
     complete  its  construction  obligations  and deliver  the new  Premises to
     Tenant as of the date specified in Landlord's notice.

     30. HAZARDOUS  SUBSTANCES.  (a) The term "Hazardous  Substances" as used in
this Lease is defined to mean any substance  defined as a "hazardous  substance"
or "hazardous material" under either the Comprehensive  Environmental  Response,
Compensation  and Liability Act of 1989,  as amended (42 USC9601,  et seq.),  or
substances  declared to be hazardous or toxic under any other federal,  state or
municipal  law or  regulation  now or hereafter  enacted or  promulgated  by any
governmental   authority  having   jurisdiction,   and  including  asbestos  and
underground and above ground storage tanks.

          (b) Tenant shall have no  responsibility  or liability  whatsoever  to
     Landlord  or any third  person for any  Hazardous  Substances  or any other
     environmental  hazards  which  were  created  and/or  existed  on or in the
     Premises prior to the date of this Lease. Landlord shall indemnify and save
     harmless tenant, its successors and assigns, from all claims and demands of
     every kind, that may be brought against Tenant, before or on account of any
     damage,  loss or injury to persons or property arising from connection with
     any such Hazardous Substance or any other  environmental  hazard created or
     existing on or before this Lease,  and from any and all costs and  expenses
     and other  charges  which may be imposed upon Tenant,  its  successors  and
     assigns, or which Tenant may be obligated to incur in consequence thereof.

          (c) Tenant shall not cause or permit to occur:

               (i) Any violation of any federal,  state or local law,  ordinance
          or  regulation  now or  hereafter  enacted,  related to  environmental
          conditions  on, under or about the Premises and arising from  Tenant's
          use or occupancy of the Premises,  including,  but not limited to soil
          and ground water conditions; or

               (ii)  The  use,  generation,   release,  manufacture,   refining,
          production, processing, storage or disposal of any Hazardous Substance
          on, under or about the Premises or the  transportation  to or from the
          Premises of any Hazardous Substance.

     Further, it is agreed that:

               (iii) Tenant shall, at Tenant's own expense, make all submissions
          to,  provide  all  information   required  by,  and  comply  with  all
          requirements of all governmental  authorities (the "Authorities) under
          the Laws.

               (iv) Tenant shall, at Tenant's own expense,  comply with all laws
          regulating the use generation,  storage, transportation or disposal of
          Hazardous Substances ("Laws").
<PAGE>
               (v) Should any Authority or any third party demand that a cleanup
          plan be  prepared  and that a clean-up  be  undertaken  because of any
          deposit,  spill,  discharge or other  release of Hazardous  Substances
          that occurs during the term of this Lease, at or from the Premises and
          Tenant's use thereof, and for compliance  therewith,  and Tenant shall
          execute all documents promptly upon Landlord's request. No such action
          by Landlord and no attempt made by Landlord to mitigate  damages under
          any Law shall constitute a waiver of any of Tenant's obligations under
          this Section.

               (vi) Tenant shall promptly provide all information  regarding the
          use,  generation,  storage,  transportation  or disposal of  Hazardous
          Substances  that is requested by Landlord.  If Tenant fails to fulfill
          any duty imposed under this Section within a reasonable time, Landlord
          may do so; and in such case,  Tenant shall  cooperate with Landlord in
          order to prepare all documents Landlord deems necessary or appropriate
          to  determine  the  applicability  of the  Laws  to the  Premises  and
          Tenant's use thereof, and for compliance  therewith,  and Tenant shall
          execute all documents promptly upon Landlord's request. No such action
          by Landlord and no attempt made by Landlord to mitigate  damages under
          any Law shall constitute a waiver of any of Tenant's obligations under
          this Section.

               (vii) Tenant's  obligations  and  liabilities  under this Section
          shall survive the expiration of this Lease.

          (d) Tenant shall  indemnify,  defend and hold harmless  Landlord,  the
     manager of Landlord's buildings and their respective  officers,  directors,
     beneficiaries, shareholders, partners, agents and employees from all fines,
     suits,  procedures,  claims  and  actions  of  every  kind,  and all  costs
     associated therewith  (including  attorneys' and consultants' fees) arising
     out of or in any way connected with any deposit,  spill, discharge or other
     release of Hazardous  Substances that occurs during the term of this Lease,
     at or from Tenant's failure provide all  information,  make all submissions
     and take all steps required by all Authorities under the Laws and all other
     environmental laws. Tenant's obligations and liabilities under this Section
     shall survive the expiration of the Lease.

     31. BROKERAGE COMMISSIONS. Each of the parties represents and warrants that
there are no claims for  brokerage  commissions  or finder's  fees in connection
with the  execution of this Lease,  and each of the parties  agrees to indemnify
and save harmless the other party from and against all liabilities  arising from
any such claim  including,  without  limitation,  the cost of attorney's fees in
connection therewith.

     32.  RECORDING.  Tenant shall not record this Lease. The parties agree that
at or prior to the  commencement  of the  Lease  term,  or at a later  date,  if
requested by either party,  they will, upon the written request of either party,
execute, acknowledge and deliver a short form of lease setting forth the date, a
description of the Premises,  term, renewal option and restrictive covenants, of
any,  contained  and found to exist in this  Lease.  If the short  form of lease
herein referred to is recorded,  all costs incident thereto shall be paid by the
party requesting such recordation. The cost of recording any financing statement
required by Landlord as security for the rent or other  payments  due  hereunder
shall be at Tenant's expense.  Such short form lease shall not change the rights
and obligations of the respective parties.

     33.  WAIVER OF JURY  TRIAL.  Landlord  and Tenant  shall and they hereby do
waive trial by jury in any action,  proceeding or counterclaim brought by either
of the parties  hereto  against the other.  Said waiver is  effective  as to all
matters, including, but not limited to, any matters arising out of or in any way
connected with this Lease, the relationship of Landlord and Tenant, Tenant's use
or occupancy of the  Premises,  and any  emergency  or other  statutory  remedy.
Tenant  further  agrees that it shall not  interpose  any  counterclaim(s)  in a
summary  proceeding  or in any action based on holdover or  non-payment  of Rent
and/or Additional Charges.
<PAGE>
     34. MISCELLANEOUS. (a) For the purpose of any suit brought or based on this
Lease,  this Lease shall be constructed to be a divisible  contract,  to the end
that  successive  actions may be maintained  as  successive  periodic sums shall
mature under this Lease, and failure to include in any suit or action any sum or
sums then matured  shall not be a bar to the  maintenance  of any suit or action
for the recovery of said sum or sums so omitted. Tenant shall not in any suit or
suits  brought  on this  Lease for a matured  sum,  for which  judgment  has not
previously been received, plead, rely on or urge as a bar to said suit or suits,
the  defenses  of  res  adjudicata,  former  recovery,  extinguishment,  merger,
election of remedies or other similar defenses.

          (b)  Nothing  shall be  construed  to be a waiver of any of the terms,
     covenants and  Conditions  herein  contained  unless the same be in writing
     signed by the party to be  charged  with such  waiver  and no waiver of the
     breach of any  covenant  shall be  construed as a waiver of the covenant or
     any subsequent breach thereof.

          (c) The  failure of  Landlord  to insist in any one or more  instances
     upon a strict  performance of any covenant of this Lease or to exercise any
     right herein contained shall not be construed as a waiver or relinquishment
     for the future of such covenant or right, but the same shall remain in full
     force and effect, unless the contrary is expressed in writing by Landlord.

          (d) If this Lease is executed by two or more  individuals,  as Tenant,
     the  liability  for  all  obligations  on  Tenant's  part  to be  performed
     hereunder,  specifically including but not limited to the obligation to pay
     all rent and  additional  rent  provided for herein,  shall be deemed to be
     joint and several.

          (e) Landlord  covenants that Tenant, on paying the Rent and Additional
     Rent due hereunder and performing  Tenant's  obligations  under this Lease,
     shall  peacefully and quietly have, hold and enjoy the Premises  throughout
     the term without hindrance,  ejection or molestation by any person lawfully
     claiming under Landlord,  subject to the terms and provisions of this Lease
     and to all  mortgages and  underlying  leases of record to which this Lease
     may  be or  becomes  subject  and  subordinate,  unless  a  non-disturbance
     agreement has been granted by mortgagee or ground lessor.

          (f) Any and all sums of money required to be paid by Tenant under this
     Lease, Whether or not designated as "additional rent" shall nevertheless be
     deemed as "additional rent" and shall be collectible as rent.

          (g)  Nothing  contained  in this Lease shall be deemed,  construed  or
     interpreted  to imply any consent or  agreement  on the part of Landlord to
     subject Landlord's interest or estate to any liability under any mechanic's
     or other lien law. If landlord  receives any notice to file a mechanic's or
     other lien against the Office, or any part thereof, or the Premises, or any
     part thereof,  for any work,  labor,  services or materials claimed to have
     been  performed or furnished  for or on behalf of Tenant or anyone  holding
     any part of the premises  through our under  Tenant,  then Tenant shall act
     promptly to have such notice  withdrawn  and to settle any dispute  that is
     the subject of such notice.  If any  petition to establish a mechanic's  or
     other  lien is  filed  or if any  mechanic's  or  other  lien  is  actually
     established,  against the Office or any part thereof,  or the Premises,  or
     any  part  thereof,  or  if  any  mechanic's  or  other  lien  is  actually
     established,  for any work,  labor,  services or materials  claimed to have
     been  performed or furnished  for or on behalf of Tenant or anyone  holding
     any part of the Premises  through or under Tenant,  then Tenant shall cause
     the same to be canceled and discharged of record by payment,  bond or order
     of court within 20 days after notice by Landlord to Tenant.  Tenant  shall,
     at Landlord's request,  give written notice to all of Tenant's laborers and
     materialmen  that  Landlord  shall  not be  responsible  for  labor  on the
     Premises not at the time of said notice  performed,  or for materials which
     have been furnished.  Tenant shall be responsible for paying, as additional
     rent,  any  attorneys  fees that  Landlord  actually  incurs as a result of
<PAGE>
     Landlord receiving any notice of intent to file a mechanic's or other, lien
     described  herein; as a result of any such petition to file a mechanic's or
     other  lien or as a result  of any such  mechanics,  or  other  lien  being
     established  against  the  Office,  or any part  thereof,  or  against  the
     Premises, or any part thereof.

     35.  CONTINGENCIES.  The Tenant's  lease at 10324 South  Dolfield Road will
commence on the earlier of the day after the Tenant's  current  lease  Agreement
with Continental Realty Corporation expires or the day after the Lease Agreement
is  terminated,  if  earlier  than the  expiration  date.  In no event  will the
Tenant's commencement date be later than November 1, 1999.

IN WITNESS  WHEREOF,  the parties  hereto have  executed  this Lease under their
respective hands and seals as of the day and year first above written:  WITNESS:
LANDLORD: KA REAL ESTATE ASSOCIATES, LLC

/s/ Phyllis Oppenheim                   /s/ Kenneth L. Blum, Jr.
----------------------                  ----------------------------------------

WITNESS:                                TENANT:
                                        AVESIS INCORPORATED

/s/ Phyllis Oppenheim                   /s/ Alan S. Cohn
----------------------                  ----------------------------------------

STATE OF MARYLAND, COUNTY OF Baltimore , to wit:

On this 3rd day of June, 1999, before me, the subscriber, a Notary Public of the
State of Maryland, personally appeared Kenneth L. Blum, Jr. ,and he acknowledged
the above Lease to be the act of said Landlord.

IN WITNESS WHEREOF, I hereunto set my hand and Notarial Seal.

                                        /s/ Kathy Incaprera
                                        ----------------------------------------
My Commission Expires: 8/1/2001

STATE OF MARYLAND, COUNTY OF Baltimore , to wit:

On this 3rd day of June, 1999, before me, the subscriber, a Notary Public of the
State of Maryland, personally appeared Kenneth L. Blum, Jr. ,and he acknowledged
the above Lease to be the act of said Landlord.

IN WITNESS WHEREOF, I hereunto set my hand and Notarial Seal.

                                        /s/ Kathy Incaprera
                                        ----------------------------------------
My Commission Expires: 8/1/2001

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