Document:

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EXHIBIT 10.12

                      FOURTH AMENDMENT TO CREDIT AGREEMENT

This Fourth Amendment to Credit Agreement is entered into as of January 14,
2001, by and between Spectrum Laboratories, Inc., a Delaware corporation
("Borrower") and City National Bank, a national banking association ("CNB").

                                    RECITALS

A. Borrower and CNB are parties to that certain Credit Agreement dated as of
December 22. 1998, as amended by that certain First Amendment to Credit
Agreement dated as of July 14) 1999, Second Amendment to Credit Agreement dated
as of July I) 2000 and that certain Amendment to Credit Agreement dated January
8, 2001 (hereinafter the "Credit Agreement").

B. Borrower and CNB desire to supplement and amend the Credit Agreement as
hereinafter set forth.

NOW THEREFORE, the parties agree as follows:

1. DEFINITIONS. Capitalized terms used in this Amendment without definition
shall have the meanings set forth in the Credit Agreement

2. AMENDMENTS. The Credit Agreement is amended as follows:

2.1 Section 2.8 is stricken in its entirety and is replaced with the fo11owing:

         2.8 EQUIPMENT ACQUISITION LOANS. CNB agrees to make loans ("Equipment
         Acquisition Loans") to Borrower from time to time up to, but not
         including, March I, 2002, up to the amount of Two Million Two Hundred
         Fifty Hundred Thousand Dollars ($2,250,000.00) (the "Equipment
         Acquisition Commitment"), the proceeds of which win be used to pay up
         to one hundred percent (100%) of any of the following: (a) the purchase
         price of machinery and equipment, including sales taxes, but excluding
         delivery and set-up charges, (b) leasehold improvements at Borrower's
         place of business located at 18617 Broadwick Street) Rancho Dominguez,
         California 90220, and (c) the purchase price of certain patents owned
         Monsanto. The Equipment Acquisition Loans will be evidenced by a
         promissory note ("Multiple Disbursement Equipment Acquisition Note) in
         the form attached hereto as Exhibit "D."

         2.8.1 INTEREST ON EQUIPMENT ACQUISITION LOANS. The Equipment
         Acquisition Loans will bear interest from disbursement until due
         (whether at stated maturity) by acceleration or otherwise) as follows:

         (a) INTEREST ONLY PERIOD: During the period from the date of
         disbursement of the initial Equipment Acquisition Loan up to but
         excluding March 1, 2002, at a fluctuating rate equal to the Prime Rate
         plus one-quarter of one percent (0.25%) per annum.

         (b) AMORTIZATION PERIOD. During the period from March I, 2002 until
         payment in full, at a rate equal to, at the election of Borrower,
         either (i) a fixed rate equal to the Treasury R3te plus three and
         one-quarter percent (3.25%) per annum ("Fixed Rate Option"), or (ii) a
         fluctuating rate equal to the Prime Rate plus one-quarter of one
         percent (0.25%) per annum ("Prime Rate Option"). Borrower shall notify
         CNB in writing no later than two (2) Business Days prior to March 1,
         2002 of Borrower's election to the Fixed Rate Option or the Prime Rate
         Option, which election shall be irrevocable once made. If Borrower
         fails to notify CNB of such election, the Equipment Acquisition Loan
         shall bear interest at the Prime Rate Option.

         (c) PAYMENT OF INTEREST. Interest will be payable monthly in arrears on
         the f1rst day of each month, for the previous month, starting on the
         first such date following disbursement and on the date the Equipment
         Acquisition Loans are paid in full.

         2.8.3 PROCEDURE FOR EQUIPMENT ACQUISITION LOANS. Each Equipment
         Acquisition Loan shall be made against delivery by Borrower to CNB of
         (a) if the Equipment Acquisition Loan is for the purchase of equipment
         or machinery, an appropriate purchase invoice evidencing the purchase

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         of items of machinery and/or equipment, (b) if the Equipment
         Acquisition Loan is to finance the leasehold improvements, a schedule
         of completed leasehold improvements, ( c) if the Equipment Acquisition
         is to finance the purchase of the patents from Monsanto a copy of the
         purchase agreement between Borrower and Monsanto, which agreement sha1l
         be acceptable to CNB, (d) such further documents as will be requested
         by CNB to perfect a security interest of first priority in favor of CNB
         in the equipment machinery and patents, as the case may be, being
         purchased, and (e) Borrower's payment to CNB of CNB's fees and costs
         incurred in perfecting CNB's security interest in the patents,
         including without limitation any attorney's fees incurred by CNB and
         any filing fees to be paid to the United States Patent and Trademark
         Office.

         2.8-4 PAYMENT OF EQUIPMENT ACQUISITION LOANS. Accrued interest shall be
         payable on the first day of each month. Principal shall hereinafter be
         payable on the first day of each month in thirty-five (35) equal,
         successive installments of $62,500.00 each, payable with each
         installment of interest, commencing April 1, 2002 with a final
         installment of $62.500.00 plus unpaid interest, due and payable in full
         on March 1, 2005.

3. EXISTING AGREEMENT. Except as expressly amended herein, the Credit Agreement
shall remain in full force and effect, and in all other respects is affirmed.

4. CONDITIONS PRECEDENT. This Amendment shall become effective upon the
fulfillment of all of the following conditions to CNB's satisfaction:

         4.1 CNB shall have received this Amendment duly executed by Borrower
         and the guarantors.

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

5. GOVERNING LAW. This Amendment and the rights and obligations of the parties
hereto shall be construed in accordance with, and governed by the laws of the
State of California.

IN WITNESS WHEREOF, the parties have executed this Amendment as of the day and
year first above written.

"Borrower"                         Spectrum Laboratories, Inc., a

                                   Delaware corporation

                                   By: /s/ Roy T. Eddleman
                                      ------------------------------------------
                                       Roy T. Eddleman, Chief Executive Officer/
                                       Chairman/Secretary

"CND"                              City National Bank, a national

                                   banking association

                                   By: /s/ Christine Borrelli
                                      ------------------------------------------
                                      Christine Borrelli, Vice President

<PAGE>

CONSENT OF GUARANTORS:

The undersigned has previously guaranteed the indebtedness of Spectrum
Laboratories, Inc., a Delaware corporation owed to CNB. The undersigned confirm
that their respective guarantee security given in connection therewith. if any,
shall continue in full force and effect and that guaranty shall be a separate
and distinct obligation and apply to the indebtedness arising from Agreement as
amended herein, subject to the overall limitation as to the amount guaranteed.

=============================================

Roy T. Eddleman

Spectrum Molecular Separations, Inc., a Delaware corporation

By: /s/ Roy T. Eddleman
    --------------------------------------------------
    Roy T. Eddleman, Chairman/Chief Executive Officer

SLI Acquisition Corp., a Delaware corporation

By: /s/ Roy T. Eddleman
    --------------------------------------------------
    Roy T. Eddleman, Chairman/Chief Executive Officer

Spectrum Europe B.V., a Netherlands corporation

By: /s/ Roy T. Eddleman
   ---------------------------------------------------
   Roy T. Eddleman, Chairman/Chief Executive Officer

<PAGE>

EXHIBIT "D"

MUL TIPLE DISBURSEMENTEQUIPMENT ACQUISITION NOTE

$2,250.000.00

South Orange County CBC #21 Office Irvine, California
December 14, 2001

FOR VALUE RECEIVED, the undersigned, SPECTRUM LABORATORIES, INC., a Delaware
corporation ("Borrower'}, promises to pay to the order of CITY NATIONAL BANK, a
national banking association ("CNB"), at its office in this city, In lawful
money of the United States of America and In immediately available funds, the
principal sum of TWO MILLION TWO HUNDRED FIFTY THOUSAND AND 00/100 DOLLARS
($2.250,000.00), or so much thereof as may be advanced and be outstanding, plus
interest on the unpaid principal balance, computed on the basis of a 360-day
year, actual days elapsed, at the rates, times and in accordance with the terms
set forth in that certain Credit Agreement between Borrower and CNB, dated as of
December 22, 1998, as it may be amended from time to time (the "Credit
Agreement"}. Capitalized terms not defined herein shall have the meanings given
them in the Credit Agreement

Advances hereunder, up to the total principal sum stated above, may be made by
CNB at the oral or written request of Borrower up to (but excluding} March 1.
2002, in accordance with the terms of the Credit Agreement and provided at the
time of any advance no Event of Default or Potential Event of Default exists
under the terms and conditions of the Credit Agreement. Each request for an
advance hereunder shall be noted in the books and records of CNB. Advances
hereunder shall be conclusively presumed to have been made to or for the benefit
of Borrower when made as noted in such books and records.

The outstanding principal balance on this Note as of March 1, 2002 ("Balance"}
shall hereinafter be payable on the first day of each month In thirty-five {35)
equal, successive installments of $62.500.00 each, payable with each installment
of interest, commencing April 1, 2002 with a final installment of $62,500.00
plus unpaid interest, due and payable in full on March 1, 2005.

If payment on this Note becomes due and payable on a non-business day, the
maturity thereof shall be extended to the next business DAY and, with respect to
payments of principal or interest thereon $hall be payable during such extension
at the then applicable rate. Upon the occurrence of one or more of the Events of
Default specified in the Credit Agreement, all amounts remaining unpaid on this
Note may become or be declared to be immediately payable as provided in the
Credit Agreement, without presentment, demand or notice of dishonor, all of
which are expressly waived. Borrower agrees to pay all costs of collection of
this Note and reasonable attorneys' fees (including attorneys' fees allocable to
CNB's in house counsel) in connection therewith, irrespective of whether suit is
brought thereon.

Upon CNB's written notice to Borrower of the occurrence of an Event of Default,
the outstanding principal balance (and interest. to the extent permitted by law)
shall bear additional interest from the date of such notice at the rate of five
percent (5.0%) per annum higher than the interest rate as determined and
computed above, and continuing thereafter until the Event of Default is cured.

This Note shall be governed by the laws of the State of California. If this Note
is executed by more than one Borrower, all obligations are joint and several.

"BORROWER"                         Spectrum Laboratories, Inc., a

                                   Delaware corporation

                                   By: /s/ Roy T. Eddleman
                                       -----------------------------------------
                                       Roy T. Eddleman, Chief Executive Officer/
                                       Chairman/Secretary<PAGE>

                           EXHIBIT 10.7 TO FORM 10-KSB

                                BANK OF FOUR OAKS

                         EXECUTIVE EMPLOYMENT AGREEMENT
                         ------------------------------

     THIS AGREEMENT is entered into as of this 1st day of January, 1989, by and
between BANK OF FOUR OAKS, a North Carolina banking corporation (the "Bank"),
and Clifton L. Painter ("Employee").

                               W I T N E S S E T H

     WHEREAS, the Bank desires that Employee become an employee of the Bank to
serve as its Vice President; and

     WHEREAS, Employee desires to become an employee of the Bank and to serve as
the Bank's Vice President;

     NOW, THEREFORE, in consideration of the premises and of the mutual
covenants contained in this Agreement, the Bank and Employee agree as follows:

     l.   Employment. Commencing on the date of this Agreement, Employee is
          ----------
employed by the Bank as its Vice President with the duties, responsibilities and
powers of such office as assigned to him as of the date of this Agreement and as
customarily associated with such office.

     2.   Term. The term of this Agreement shall commence on the date of this
          ----
Agreement and shall terminate on December 31, 1991 and shall, unless terminated
otherwise as set forth in this Agreement, be automatically extended on December
31, 1991 and each anniversary of such date for an additional term of one (1)
year unless such automatic extension is declined by either party by notice given
not less than ninety (90) days before the end of the then current term of this
Agreement; provided that the term of this Agreement shall not extend beyond
Employee's normal retirement date at age 65.

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     3.   Compensation and Benefits. In consideration of his services during the
          -------------------------
term of this Agreement, Employee shall be paid compensation and benefits by the
Bank as follows:

          (a)  Base Salary.
               -----------

               Employee will receive an annual base salary of $40,800, payable
in monthly installments. Commencing January 1, 1989, and annually thereafter,
Employee will be entitled to receive such increases in his annual base salary as
may be approved by the Board of Directors of the Bank, with each such increase
thereafter being included in his annual base salary for all purposes.

          (b)  Additional Benefits.
               -------------------

               Employee shall be entitled to receive and participate in all
benefits and conditions of employment generally made available to the Bank's
executive officers and also those generally made available to all salaried
employees of the Bank including, but not limited to, insurance benefits,
vacation, sick leave, and reimbursement of expenses incurred on behalf of the
Bank in the course of performing duties under this Agreement.

     4.   Termination.  Employee's employment under this Agreement shall
          -----------
terminate:

          (a)  Upon the death of Employee;

          (b)  Upon written notice from the Bank to Employee in the event of an
illness or other disability incapacitating him from performing his duties for
six (6) consecutive months as determined in good faith by the Board of Directors
of the Bank or a committee of the Board;

          (c)  For cause upon written notice from the Bank ("Cause" for this
purpose means (i) the willful and continued failure by Employee for a
significant period of time substantially to perform his duties with the Bank
(other than any such failure resulting from his disability) after a demand for
substantial performance is delivered to Employee by the Bank's

                                       2

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Board of Directors or a committee of the Board which specifically identifies the
manner in which the Board of Directors believes that Employee has not
substantially performed his duties, (ii) the willful engaging by Employee in
gross misconduct materially and demonstratively injurious to the Bank or (iii)
the conviction of Employee of any crime involving fraud or dishonesty); or

          (d)  Upon thirty (30) days notice from Employee to Bank at any time
within two (2) years following a change in control of the Bank. "Change in
control" means one or more of the following occurrences:

               (i)   A corporation, person or group acting in concert as
described in Section 14(d)(2) of the Securities Exchange Act of 1934, as amended
("Exchange Act"), holds or acquires beneficial ownership within the meaning of
Rule 13d-3 promulgated under the Exchange Act of a number of shares of voting
capital stock of the Bank which constitutes either (A) more than 50 percent of
the shares which voted in the election of directors of the Bank at the
shareholders' meeting immediately preceding such determination, or (B) more than
33 percent of the Bank's then outstanding shares entitled to vote.

               (ii)  A merger or consolidation to which the Bank is a party
(other than a pro forma transaction for a purpose such as changing the state of
              ---------
incorporation or name of the Bank), if either (A) the Bank is not the surviving
corporation, or (B) the directors of the Bank immediately before the merger or
consolidation constitute less than a majority of the Board of Directors of the
surviving corporation; provided, however, the occurrence described in clause (A)
shall not constitute a change in control if the holders of the Bank's voting
capital stock immediately before the merger or consolidation have the same
proportional ownership of voting capital stock of the surviving corporation
immediately after the merger or consolidation.

                                       3

<PAGE>

               (iii)  All or substantially all of the assets of the Bank are
sold, leased or disposed of in one transaction or a series of related
transactions.

               (iv)   An agreement, plan, contract or other arrangement is
entered into providing for any occurrence which as defined in this Agreement
would constitute a change of control.

     The Bank hereby represents, warrants and agrees that it shall give prompt
notice to Employee immediately upon learning of the consummation of any of the
events set forth in paragraph 4(d) of this Agreement. If the Bank fails to give
such notice to Employee, the Bank shall be estopped from contesting, and shall
not contest, the adequacy or timeliness of any notice Employee may be allowed or
required to give following a change in control of the Bank.

     5.   Non-Assignability. This Agreement shall not be assignable by Employee.
          -----------------
This Agreement shall not be assignable by the Bank without the prior written
consent of Employee except to a corporation which is the surviving entity in any
merger involving the Bank or to a corporation which acquires all or
substantially all of the stock or asserts of the Bank.

     6.   Modification. This Agreement sets forth all the terms and conditions
          ------------
of the employment agreement between Employee and the Bank and can be modified
only by a writing signed by both parties. No waiver by either party to this
Agreement at any time of any breach of the other party of, or compliance with,
any condition or provision of this Agreement to be performed by such other party
shall be deemed a waiver of similar or dissimilar provisions or conditions at
the same or at any prior or subsequent time.

     7.   Counterparts; Construction. This Agreement may be executed in several
          --------------------------
identical counterparts, each of which when so executed shall be deemed an
original, but all such

                                       4

<PAGE>

counterparts shall constitute one and the same instrument. This Agreement shall
be governed by, and construed and enforced in accordance with, the laws of the
State of North Carolina.

     8.   Severability. Should any provision of this Agreement be declared to be
          ------------
invalid for any reason or to have ceased to be binding on the parties, such
provision shall be severed, and all other provisions shall be effective and
binding.

     9.   Notice. All necessary notices, demands and requests required or
          ------
permitted under this Agreement shall be in writing and shall be deemed to have
been duly given if delivered in person or mailed by certified mail, postage
prepaid, addressed as follows:

          (a)    If to Employee:    Clifton L. Painter
                                    1115 Wilson Mills Road
                                    Smithfield, North Carolina 27577

          (b)    If to Bank:        Bank of Four Oaks
                                    503 N. Wellons Street
                                    Four Oaks, North Carolina 27524

or to such other address as shall be furnished by either party.

                                       5

<PAGE>

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

                                          BANK OF FOUR OAKS

ATTEST:                                   By: /s/ M.S. Canaday
                                              ----------------------------------
                                              Authorized Officer

/s/ Ayden R. Lee, Jr.
--------------------------------
            Secretary

(SEAL)
                                          /s/ Clifton L. Painter          (SEAL)
                                          --------------------------------
                                          Clifton L. Painter
                                          Employee

                                       6

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