Document:

[LOGO OF COMERICA]

                                CREDIT AGREEMENT

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THIS CREDIT  AGREEMENT  is made and  delivered to be effective as of November 1,
2003, by GVI SECURITY, INC., a Delaware corporation,  d/b/a SAMSUNG CCTV (herein
referred to with all successors,  assigns and/or personal representatives as the
"Borrower"),  and COMERICA  BANK  (herein  referred to with its  successors  and
assigns as the "Bank").  For and in  consideration of the mutual promises herein
contained and other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, Borrower and Bank agree as follows:

SECTION 1.        DEFINITIONS

1.1      Defined Terms.  The following  terms, as used in this Agreement,  shall
         have the meanings set forth below.  The singular number shall be deemed
         to include the plural,  the masculine gender shall include the feminine
         and neuter genders, and vice versa.

         "Accounts,"  "Chattel  Paper,"  "Documents,"   "General   Intangibles,"
         "Goods,"  "Instruments" shall have the meanings assigned to them in the
         UCC on the date of this Agreement.

         "Affiliate" shall mean, when used with respect to any Person, any other
         Person which,  directly or indirectly,  controls or is controlled by or
         is  under  common  control  with  such  Person.  For  purposes  of this
         definition,  "control" (including, with correlative meanings, the terms
         "controlled by" and "under common control  with"),  with respect to any
         Person, shall mean possession,  directly or indirectly, of the power to
         direct or cause the  direction of the  management  and policies of such
         Person, whether through the ownership of voting securities, by contract
         or otherwise.

         "Agreement"  shall mean this Credit  Agreement,  including all addenda,
         exhibits and schedules now or hereafter made a part hereof, as the same
         may be amended from time to time.

         "Applicable Interest Rate" shall mean, with respect to the Indebtedness
         from time to time  outstanding  under any promissory note or other Loan
         Document  evidencing  the  Indebtedness,  the rate or rates provided in
         such note as the applicable interest rate.

         "Business  Day"  shall mean a day on which the Bank is open to carry on
         its normal commercial lending business.

         "Collateral" shall mean all property, assets and rights in which a Lien
         or other  encumbrance  in favor of or for the benefit of Bank is or has
         been  granted or arises or has arisen,  or may  hereafter be granted or
         arise, under or in connection with any Loan Document, or otherwise,  to
         secure the payment or performance of any portion of the Indebtedness.

         "Debt" shall mean, as of any applicable date of determination  thereof,
         all liabilities of a Person that should be classified as liabilities in
         accordance  with GAAP.  In the case of Borrower,  the term "Debt" shall
         include, without limitation, the Indebtedness.

         "Debt-to-Tangible  Net Worth  Ratio"  shall mean,  with  respect to any
         Person,  and as of any applicable date of  determination  thereof,  the
         ratio of (a) the total Debt of such Person less the total  Subordinated
         Debt of such Person to (b) the Tangible Net Worth of such Person.

         "Default"  shall mean any condition or event which,  with the giving of
         notice or the passage of time,  or both,  would  constitute an Event of
         Default.

                                      -1-
<PAGE>

         "Disbursement  Date"  shall  mean each date upon which the Bank makes a
         loan to the Borrower under Section 2.1 of this Agreement.

         "Environmental Law(s)" shall mean all laws, codes,  ordinances,  rules,
         regulations,  orders,  decrees and  directives  issued by any  federal,
         state,  local,  foreign  or other  governmental  or quasi  governmental
         authority  or  body  (or  any  agency,   instrumentality  or  political
         subdivision  thereof)  pertaining  to Hazardous  Materials or otherwise
         intended  to  regulate or improve  health,  safety or the  environment,
         including, without limitation, any hazardous materials or wastes, toxic
         substances,  flammable,  explosive or radioactive materials,  asbestos,
         and/or  other  similar   materials;   any  so-called   "superfund"   or
         "superlien" law,  pertaining to Hazardous  Materials on or about any of
         the  Collateral,  or any other  property at any time  owned,  leased or
         otherwise used by any Loan Party,  or any portion  thereof,  including,
         without limitation,  those relating to soil, surface, subsurface ground
         water  conditions  and the  condition of the ambient air; and any other
         federal,  state, foreign or local statute, law, ordinance,  code, rule,
         regulation,  order or  decree  regulating,  relating  to,  or  imposing
         liability or standards of conduct  concerning,  any  hazardous,  toxic,
         radioactive,  flammable or dangerous waste,  substance or material,  as
         now or at anytime hereafter in effect.

         "ERISA" shall mean the Employee Retirement Income Security Act of 1974,
         as amended, or any successor act or code.

         "Event of Default" shall mean any of those  conditions or events listed
         in Section 6.1 of this Agreement.

         "Financial  Statements"  shall mean all those balance sheets,  earnings
         statements  and other  financial  data  (whether of the  Borrower,  any
         Subsidiary,  any Guarantor or otherwise)  which have been  furnished to
         the Bank for the purpose of, or in connection  with, this Agreement and
         the transactions contemplated hereby.

         "GAAP" shall mean generally accepted accounting principles consistently
         applied.

         "Governmental Authority" shall mean the United States, each state, each
         county, each city, and each other political subdivision in which all or
         any  portion of the  Collateral  is located,  and each other  political
         subdivision,  agency, or instrumentality  exercising  jurisdiction over
         Bank, any Loan Party, any of the Indebtedness or any Collateral.

         "Governmental Requirements" shall mean all laws, ordinances, rules, and
         regulations of any Governmental Authority applicable to any Loan Party,
         any of the Indebtedness or any Collateral.

         "Guarantor(s)"  shall mean,  as the  context  dictates,  any  Person(s)
         (other  than  the  Borrower)  who  shall,  at any  time,  guarantee  or
         otherwise be or become  obligated  for the repayment of all or any part
         of the Indebtedness, if any.

         "Hazardous  Material"  shall mean and include any  hazardous,  toxic or
         dangerous  waste,  substance  or  material  defined  as such in, or for
         purposes of, any Environmental Law(s).

<PAGE>

         "Indebtedness"  shall mean all  obligations and liabilities of any Loan
         Party to Bank under this Agreement or any Loan Document,  together with
         all other  indebtedness,  obligations  and  liabilities  whatsoever  of
         Borrower  to  Bank,   whether  matured  or  unmatured,   liquidated  or
         unliquidated,  direct or  indirect,  absolute or  contingent,  joint or
         several,  due or to become  due,  now  existing or  hereafter  arising,
         voluntary or involuntary,  known or unknown,  or originally  payable to
         Bank or to a third party and  subsequently  acquired by Bank including,
         without limitation,  any: late charges; loan fees or charges; overdraft
         indebtedness;  costs  incurred  by Bank in  establishing,  determining,
         continuing  or  defending  the  validity  or priority of any Lien or in
         pursuing any of its rights or remedies under this Agreement or any Loan
         Document  or in  connection  with any  proceeding  involving  Bank as a
         result of any financial accommodation to Borrower;  debts,  obligations
         and  liabilities  for which Borrower  would  otherwise be liable to the
         Bank were it not for the invalidity or enforceability of them by reason
         of any bankruptcy, insolvency or other law or for any other reason; and
         reasonable costs and expenses of attorneys and paralegals,  whether any
         suit or other  action  is  instituted,  and to  court  costs if suit or
         action is instituted,  and whether any such fees, costs or expenses are
         incurred  at the trial  court  level or on appeal,  in  bankruptcy,  in
         administrative   proceedings,  in  probate  proceedings  or  otherwise;
         provided,  however,  that the term  Indebtedness  shall not include any
         consumer  loan to the  extent  treatment  of  such  loan as part of the
         Indebtedness would violate any Governmental Requirement.

         "Inventory"  means  all of  the  Borrower's  now  owned  and  hereafter
         acquired inventory,  goods,  merchandise,  and other personal property,
         wherever located, to be furnished under any contract of service or held
         for sale or lease, all raw materials, work-in-process,  finished goods,
         returned and repossessed goods, and materials and supplies of any kind,
         nature or  description  which are or might be used or  consumed  in the
         Borrower's  business  or  used  in  connection  with  the  manufacture,
         packing, shipping, advertising,  selling or finishing of such inventory
         goods,  merchandise and such other personal property, and all documents
         of title or other documents representing them, and all proceeds thereof
         (including,  but not limited to, all proceeds of insurance with respect
         thereto,  including  the proceeds of any casualty  insurance);  and any
         lists,  information  and  records  prepared  or kept in relation to the
         foregoing  and  including,  without  limitation,  any of the  foregoing
         constituting  in-transit inventory at the FOB Shipping Point, following
         acquisition thereof by Borrower.

         "Letter of Credit" shall mean a letter of credit issued by the Bank for
         the  account  of  and/or  upon  the  application  of  the  Borrower  in
         accordance  with  this  Agreement,  as such  Letter  of  Credit  may be
         amended, supplemented, extended or confirmed from time to time.

         "Letter of Credit  Liabilities"  shall mean, at any time and in respect
         of all Letters of Credit, the sum of (a) the aggregate amount available
         to be drawn  under all such  Letters of Credit  plus (b) the  aggregate
         unpaid amount of all Reimbursement  Obligations then due and payable in
         respect of previous drawings under such Letters of Credit.

         "Lien" shall mean any valid and  enforceable  interest in any property,
         whether real, personal or mixed,  securing an indebtedness,  obligation
         or  liability  owed to or claimed by any Person other than the owner of
         such property,  whether such indebtedness is based on the common law or
         any statute or contract and  including,  but not limited to, a security
         interest,  pledge,  mortgage,   assignment,   conditional  sale,  trust
         receipt, lease, consignment or bailment for security purposes.

         "Loan  Documents"  shall  mean   collectively,   this  Agreement,   any
         promissory notes evidencing  Indebtedness,  any approved  subordination
         agreement,  any reimbursement agreement or other documentation executed
         in  connection  with any  Letter of  Credit,  and any other  documents,
         instruments or agreements evidencing, governing, securing, guaranteeing
         or otherwise  relating to or executed pursuant to or in connection with
         any of the  Indebtedness  or any Loan  Document  (whether  executed and
         delivered prior to, concurrently with or subsequent to this Agreement),
         as such  documents  may have been or may hereafter be amended from time
         to time.

<PAGE>

         "Loan Party" shall mean Borrower,  each of its Subsidiaries (whether or
         not a party to any Loan  Document)  and each other  Person who or which
         shall be liable for the payment or performance of all or any portion of
         the Indebtedness or who or which shall own any property that is subject
         to (or  purported  to be subject  to) a Lien which  secures  all or any
         portion of the Indebtedness.

         "Material  Adverse  Effect"  shall mean any act,  event,  condition  or
         circumstance  which could materially and adversely affect the business,
         operations,  condition (financial or otherwise),  performance or assets
         of any Loan  Party,  the  ability  of any Loan  Party  to  perform  its
         obligations  under any Loan Document to which it is a party or by which
         it is bound or the enforceability of any Loan Document.

         "Maximum  Legal  Rate"  shall  mean  the  maximum  rate of  nonusurious
         interest per annum  permitted to be paid by Borrower or, if applicable,
         another Loan Party or received by Bank with  respect to the  applicable
         portion of the Indebtedness from time to time under applicable state or
         federal law as now or as may be hereafter in effect,  including Chapter
         1 D of Title 79 Vernon's  Texas Civil  Statutes (and as the same may be
         incorporated  by  reference  in other Texas  statutes),  but  otherwise
         without limitation, that rate based upon the "weekly ceiling rate" from
         time to time in effect under  Chapter 303 of the Texas Finance Code, as
         amended.

         "Net  Income"  shall  mean the net income (or loss) of a Person for any
         applicable period of determination, determined in accordance with GAAP,
         but excluding, in any event:

         (a)      any gains or losses on the sale or other  disposition,  not in
                  the ordinary  course of business,  of  investments or fixed or
                  capital  assets,  and any taxes on the excluded  gains and any
                  tax  deductions or credits on account of any excluded  losses;
                  and

         (b)      in the case of  Borrower,  net earnings of any Person in which
                  Borrower has an ownership  interest,  unless such net earnings
                  shall have  actually  been received by Borrower in the form of
                  cash distributions.

         "PBGC"  shall mean the Pension  Benefit  Guaranty  Corporation,  or any
         Person  succeeding  to the present  powers and functions of the Pension
         Benefit Guaranty Corporation.

         "Pension Plan(s)" shall mean any and all employee benefit pension plans
         of Borrower and/or any of its Subsidiaries in effect from time to time,
         as such term is defined in ERISA.

         "Permitted  Encumbrances"  shall mean:  (a) Liens in favor of the Bank;
         (b) Liens for taxes,  assessments or other  governmental  charges which
         are not yet  due  and  payable,  incurred  in the  ordinary  course  of
         business and for which no interest, late charge or penalty is attaching
         or which are being  contested in good faith by appropriate  proceedings
         and, if requested by Bank, bonded in an amount and manner  satisfactory
         to Bank; (c) Liens,  not delinquent,  arising in the ordinary course of
         business   and  created  by  statute  in   connection   with   worker's
         compensation,  unemployment  insurance,  social  security  and  similar
         statutory obligations; (d) Liens of mechanics,  materialmen,  carriers,
         warehousemen  or other  like  statutory  or common  law Liens  securing
         obligations  incurred in good faith in the ordinary  course of business
         without  violation  of any  Loan  Document  that  are  not  yet due and
         payable; (e) Liens existing as of the date hereof identified on Exhibit
         A attached  hereto;  and (f) Liens placed upon fixed  assets  hereafter
         acquired to secure a portion of the purchase  price  thereof,  provided
         that any such Lien shall not encumber any other property of Borrower.

<PAGE>

         "Person"  or   "person"   shall  mean  any   individual,   corporation,
         partnership,  joint venture,  limited liability  company,  association,
         trust,  unincorporated  association,  joint stock company,  government,
         municipality, political subdivision or agency, or other entity.

         "Reimbursement  Obligations"  shall mean, at any time and in respect of
         all Letters of Credit, the aggregate obligations of the Borrower,  then
         outstanding  or which may thereafter  arise,  to reimburse the Bank for
         any  amount  paid or  incurred  by the Bank in  respect  of any and all
         drawings under such Letters of Credit,  together with any and all other
         Indebtedness,  obligations  and  liabilities  of any Loan Party to Bank
         related to such Letters of Credit  arising  under this  Agreement,  any
         Letter of Credit application or any other Loan Document.

         "Revolving  Credit  Maturity Date" shall mean the  Termination  Date or
         such earlier date on which the entire  unpaid  principal  amount of all
         Revolving  Loans becomes due and payable  whether by the lapse of time,
         demand for payment,  acceleration or otherwise;  provided,  however, if
         any such date is not a business day, then the Revolving Credit Maturity
         Date shall be the next succeeding business day.

         "Revolving  Credit  Maximum  Amount"  shall  mean  the  lesser  of  (a)
         $10,000,000.00  or (b) the maximum  amount  permitted  by that  certain
         Advance Formula Agreement ("Advance Formula Agreement"),  dated of even
         date herewith, executed by Borrower and Bank.

         "Revolving  Credit Note" shall mean the Revolving  Credit Note dated of
         even  date  herewith  in  the  maximum  original  principal  amount  of
         $10,000,000.00  made by Borrower  payable to the order of the Bank,  as
         the same may be renewed, extended, modified, increased or restated from
         time to time.

         "Revolving  Loan" shall mean an advance made, or to be made,  under the
         revolving  credit facility to or for the credit of Borrower by the Bank
         pursuant to this Agreement.

         "Subordinated  Debt"  shall mean any Debt of  Borrower  (other than the
         Indebtedness) which has been subordinated to the Indebtedness  pursuant
         to a  subordination  agreement in form and content  satisfactory to the
         Bank.

         "Subsidiary"  shall  mean  as to  any  particular  parent  entity,  any
         corporation,  partnership,  limited  liability  company or other entity
         (whether now existing or hereafter organized or acquired) in which more
         than fifty percent (50%) of the outstanding equity ownership  interests
         having voting rights as of any applicable date of determination,  shall
         be owned directly,  or indirectly through one or more Subsidiaries,  by
         such parent entity.  As of the date of this Agreement,  Borrower's only
         Subsidiaries are: None

         "Tangible  Net Worth" shall mean,  with respect to any Person and as of
         any  applicable  date of  determination,  (a) the net book value of all
         assets  of  such  Person  (excluding  accounts   receivables  from  any
         Affiliate,   patent  rights,   trademarks,   trade  names,  franchises,
         copyrights, licenses, goodwill, and all other intangible assets of such
         Person),  after all  appropriate  deductions  in  accordance  with GAAP
         (including,  without  limitation,  reserves for  doubtful  receivables,
         obsolescence, depreciation and amortization), less (b) all Debt of such
         Person at such time, plus (c) the Subordinated Debt of such Person.

         "Termination Date" shall mean November 1, 2005.

<PAGE>

         "UCC" shall mean the Uniform Commercial Code as adopted and in force in
         the State of Texas, as amended.

1.2      Accounting Terms. All accounting terms not specifically defined in this
         Agreement shall be determined and construed in accordance with GAAP.

SECTION 2.        FUNDING LOANS, PAYMENTS, RECOVERIES AND COLLECTIONS

2.1      Funding Loans. Subject to the terms,  conditions and procedures of this
         Agreement and each other Loan Document and to the  satisfaction  of all
         conditions precedent to the making and funding of any loan as set forth
         in any Loan  Document,  Bank shall make the  proceeds  of any such loan
         available to Borrower on the Disbursement  Date agreed upon by Bank and
         Borrower by  depositing  such  proceeds  into an account  maintained by
         Borrower with Bank or as otherwise agreed to in writing by Borrower and
         Bank.

2.2      Revolving  Loans.  Subject  to the  terms  and  conditions  of the Loan
         Documents and to the  satisfaction  of all conditions  precedent to the
         making and funding of any loan as set forth in any Loan  Document,  the
         Bank  agrees to make  Revolving  Loans to Borrower at any time and from
         time to time from the effective  date hereof until (but not  including)
         the Revolving  Credit  Maturity Date.  The proceeds of Revolving  Loans
         shall be used solely to finance the working capital needs of Borrower.

         Except as hereinafter  provided,  Borrower may request a Revolving Loan
         by submitting to Bank a request for advance by an authorized officer or
         other  representative of Borrower,  subject to the following:  (a) each
         such  request  for  advance  shall  include,  without  limitation,  the
         proposed  amount of such revolving  loan and the proposed  Disbursement
         Date,  which date must be a Business  Day;  (b) each such  request  for
         advance  shall be  communicated  to Bank by 12:00 noon  (Dallas,  Texas
         time) three (3) business days prior to the proposed  Disbursement Date;
         (c) a request for  advance,  once  communicated  to Bank,  shall not be
         revocable  by  Borrower;   and  (d)  each  request  for  advance,  once
         communicated to Bank, shall constitute a  representation,  warranty and
         certification  by Borrower as of the date thereof that: (i) both before
         and after the making of such Revolving  Loan, the obligations set forth
         in the Loan Documents are and shall be valid,  binding and  enforceable
         obligations  of each  Loan  Party,  as  applicable;  (ii) all terms and
         conditions  precedent  to the making of such  Revolving  Loan have been
         satisfied,  and  shall  remain  satisfied  through  the  date  of  such
         Revolving Loan;  (iii) the making of such Revolving Loan will not cause
         the aggregate  outstanding principal amount of all Revolving Loans plus
         the  Letter  of  Credit  Liabilities,  if  applicable,  to  exceed  the
         Revolving  Credit Maximum  Amount;  (iv) no Default or Event of Default
         shall have  occurred or be in  existence,  and none will exist or arise
         upon the making of such  Revolving  Loan; (v) the  representations  and
         warranties  contained in the Loan Documents are true and correct in all
         material  respects  and  shall  be true  and  correct  in all  material
         respects as of the making of such Revolving  Loan; and (vi) the request
         for advance will not violate the terms or  conditions  of any contract,
         indenture, agreement or other borrowing of any Loan Party.

         Bank  may  elect  (but  without  any  obligation  to do so)  to  make a
         Revolving  Loan upon the  telephonic or facsimile  request of Borrower,
         provided  that  Borrower  has first  executed  and  delivered to Bank a
         telephone  notice  authorization  in form and content  satisfactory  to
         Bank. If any such  Revolving  Loan based upon a telephonic or facsimile
         request is made by Borrower,  Bank may require Borrower to confirm said
         telephonic or facsimile request in writing by delivering to Bank, on or
         before  11:00  a.m.  (Dallas,  Texas  time)  on the next  business  day
         following the Disbursement Date of such Revolving Loan, a duly executed
         written request for advance,  and all other  provisions of this Section
         2.2  shall be  applicable  with  respect  to such  Revolving  Loan.  In
         addition,  Borrower  may  authorize  the  Bank  to  automatically  make
         revolving  loans  pursuant to such other  written  agreements as may be
         entered into by Bank and Borrower.

<PAGE>

         Notwithstanding  anything  contained in this Agreement to the contrary,
         the  aggregate  principal  amount  of all  Revolving  Loans at any time
         outstanding plus the Letter of Credit Liabilities, if applicable, shall
         not exceed the Revolving Credit Maximum Amount. If said limitations are
         exceeded at anytime,  Borrower  shall  immediately,  without  demand by
         Bank, pay to Bank an amount not less than such excess,  or, if Bank, in
         its sole discretion,  shall so agree,  Borrower shall provide Bank cash
         collateral in an amount not less than such excess,  and Borrower hereby
         pledges and grants to Bank a security  interest in such cash collateral
         so  provided to Bank.  Unless  otherwise  expressly  provided in a Loan
         Document, all sums payable by Borrower to Bank under or pursuant to any
         Loan Document,  whether  principal,  interest,  or otherwise,  shall be
         paid,  when due,  directly to Bank at any office of Bank located in the
         State  of Texas in  immediately  available  United  States  funds,  and
         without setoff, deduction or counterclaim. Bank may, in its discretion,
         charge  any and all  deposit  or  other  accounts  (including,  without
         limitation,  any account  evidenced by a certificate of deposit or time
         deposit)  of Borrower  maintained  with Bank for all or any part of any
         Indebtedness  then  due  and  payable;  provided,  however,  that  such
         authorization  shall  not  affect  Borrower's  obligations  to pay  all
         Indebtedness,  when  due,  whether  or not any  such  account  balances
         maintained  by Borrower with Bank are  insufficient  to pay any amounts
         then due.

         Borrower shall pay to Bank an unused  commitment fee in an amount equal
         to the product of (a) one quarter of one percent  (.25%)  multiplied by
         (b) the difference between (i) the maximum face amount of the Revolving
         Credit Note and (ii) the average daily aggregate  principal  balance of
         all  Revolving  Loans  outstanding  during  each of  Borrower's  fiscal
         quarters.  Such fee shall be computed and shall be payable quarterly in
         arrears as of the end of each of Borrower's fiscal quarters. Bank shall
         invoice  Borrower for such fees, which invoice shall be due and payable
         within fifteen (15) days after receipt.

         The   provisions   of  Chapter  346  of  the  Texas  Finance  Code  are
         specifically declared by the parties not to be applicable to any of the
         Loan Documents or the transactions contemplated thereby.

2.3      Letters  of  Credit.  Subject  to the  terms  and  conditions  of  this
         Agreement and the other Loan  Documents,  the Bank shall,  upon request
         from Borrower from time to time prior to the Revolving  Credit Maturity
         Date,  issue  one or more  Letters  of  Credit.  The  Letter  of Credit
         Liabilities  shall  not  exceed  $1,000,000.00  and  the sum of (a) the
         outstanding  principal  balance  of all  Revolving  Loans  plus (b) the
         Letter of Credit  Liabilities  shall not  exceed the  Revolving  Credit
         Maximum  Amount.  Letters of Credit may be issued  solely as commercial
         letters of credit  related to trade  financing.  Each  Letter of Credit
         issued  pursuant to this  Agreement  shall be in a minimum  amount of $
         -0-. No Letter of Credit shall have a stated expiration date later than
         the Revolving Credit Maturity Date.

         Borrower shall give the Bank written notice requesting each issuance of
         a Letter of Credit hereunder not less than ten (10) business days prior
         to the  requested  issuance  date and  shall  furnish  such  additional
         information  regarding  such  transaction  as  Bank  may  request.  The
         issuance  by Bank of each  Letter of Credit  shall,  in addition to the
         conditions precedent set forth elsewhere in this Agreement,  be subject
         to the conditions  precedent that (i) such Letter of Credit shall be in
         form and  substance  satisfactory  to Bank,  (ii)  Borrower  shall have
         executed and delivered  such  applications  and other  instruments  and
         agreements  relating  to such  Letter  of  Credit  as Bank  shall  have
         requested and are not  inconsistent  with the terms of this  Agreement,
         (iii) each of the  statements  in Section  2.2 (d) above are true as of
         the date of issuance of such Letter of Credit with  respect to issuance
         of such Letter of Credit (as opposed to making a Revolving  Loan),  and
         the  submission  of an  application  for issuance of a Letter of Credit
         shall  constitute  a  representation,  warranty  and  certification  of
         Borrower to that effect,  and (iv) no Letter of Credit may be issued if
         after  giving  effect  thereto,  the sum of the  aggregate  outstanding
         principal  balance  of all  Revolving  Loans  plus the Letter of Credit
         Liabilities  would exceed the Revolving  Credit  Maximum  Amount.  With
         respect to the  issuance or renewal of each Letter of Credit,  Borrower
         shall pay to Bank an  origination  fee for each Letter of Credit in the
         amount of one  percent  (1%) of the amount of such Letter of Credit and
         such other fees and expenses  customarily charged by Bank in connection
         with the issuance or renewals of letters of credit.

<PAGE>

         Borrower shall be irrevocably and  unconditionally  obligated forthwith
         to  reimburse  Bank for any amount paid by Bank upon any drawing  under
         any Letter of Credit,  without  presentment,  demand,  protest or other
         formalities  of any  kind,  all of  which  are  hereby  waived.  Unless
         Borrower   shall  elect  to  otherwise   satisfy   such   Reimbursement
         Obligation,  such reimbursement  shall,  subject to satisfaction of any
         conditions provided herein for the making of Revolving Loans and to the
         Revolving Credit Maximum Amount,  automatically be made by advancing to
         Borrower  a  Revolving  Loan  in  the  amount  of  such   Reimbursement
         Obligation.

2.4      Maximum Interest Rate. At no time shall any Applicable Interest Rate or
         default  rate in  respect  of any  Indebtedness  hereunder,  exceed the
         Maximum  Legal  Rate.  In the event  that any  interest  is  charged or
         otherwise  received  by Bank  in  excess  of the  Maximum  Legal  Rate,
         Borrower hereby  acknowledges  and agrees that any such excess interest
         shall be the result of an accidental and bona fide error,  and any such
         excess  shall be deemed to have been payment of  principal,  and not of
         interest,  and  shall  be  applied,  first,  to  reduce  the  principal
         Indebtedness  then outstanding,  second,  any remaining excess, if any,
         shall be  applied  to reduce any other  Indebtedness,  and  third,  any
         remaining   excess,   if  any,   shall   be   returned   to   Borrower.
         Notwithstanding  the foregoing or anything to the contrary contained in
         this  Agreement  or  any  other  Loan  Document,  but  subject  to  all
         limitations  contained in this  Section,  if at anytime any  Applicable
         Interest  Rate or default rate or other rate of interest  applicable to
         any portion of the Indebtedness is computed on the basis of the Maximum
         Legal Rate, any subsequent  reduction in the Applicable  Interest Rate,
         default  rate or such other  rate of  interest  shall not  reduce  such
         interest rate thereafter payable below the Maximum Legal Rate until the
         aggregate  amount  of  interest  accrued  equals  the  total  amount of
         interest  that would have accrued if interest  had, at all times,  been
         computed solely on the basis of the Applicable  Interest Rate,  default
         rate or such other  interest  rate.  This  Section  shall  control  all
         agreements between the Borrower and the Bank.

2.5      Receipt of  Payments  by Bank.  Any  payment by  Borrower of any of the
         Indebtedness  made by mail will be deemed tendered and received by Bank
         only upon actual receipt thereof by Bank at the address  designated for
         such payment,  whether or not Bank has authorized payment by mail or in
         any other  manner,  and such  payment  shall not be deemed to have been
         made in a timely manner unless  actually  received by Bank on or before
         the date due for such  payment,  time  being of the  essence.  Borrower
         expressly  assumes  all  risks  of loss  or  liability  resulting  from
         non-delivery or delay of delivery of any item of payment transmitted by
         mail or in any other  manner.  Acceptance  by Bank of any payment in an
         amount less than the amount then due shall be deemed an  acceptance  on
         account  only,  and any failure to pay the entire amount then due shall
         constitute  and  continue  to be an  Event  of  Default.  Prior  to the
         occurrence of any Default,  Borrower shall have the right to direct the
         application  of any and all  payments  made  to Bank  hereunder  to the
         Indebtedness   evidenced  by  the  respective   notes   evidencing  the
         Indebtedness.  Borrower  waives the right to direct the  application of
         any and all  payments  received by Bank  hereunder at any time or times
         after  the  occurrence  and  during  the  continuance  of any  Default.
         Borrower  further  agrees  that  after the  occurrence  and  during the
         continuance  of any Default,  or prior to the occurrence of any Default
         if Borrower has failed to direct such application,  Bank shall have the
         continuing exclusive right to apply and to reapply any and all payments
         received by Bank at any time or times,  whether as voluntary  payments,
         proceeds  from any  Collateral,  offsets,  or  otherwise,  against  the
         Indebtedness  in such order and in such manner as Bank may, in its sole
         discretion, deem advisable,  notwithstanding any entry by Bank upon any
         of its books and records. Borrower hereby expressly agrees that, to the
         extent that Bank  receives any payment or benefit of or otherwise  upon
         any of the  Indebtedness,  and such  payment  or  benefit,  or any part
         thereof,  is  subsequently  invalidated,  declared to be  fraudulent or
         preferential,  set  aside,  or  required  to be  repaid  to a  trustee,
         receiver,  or any other  Person  under  any  bankruptcy  act,  state or
         federal law,  common law,  equitable  cause or  otherwise,  then to the
         extent of such payment or benefit,  the Indebtedness,  or part thereof,
         intended to be satisfied  shall be revived and  continued in full force
         and effect as if such  payment or benefit had not been made or received
         by Bank, and, further, any such repayment by Bank shall be added to and
         be deemed to be additional Indebtedness.

<PAGE>

2.6      Conditions  Precedent to Loans and Letters of Credit. The obligation of
         the Bank to issue any Letter of Credit,  if applicable,  or to make any
         loan  under or  pursuant  to this  Agreement  shall be  subject  to the
         following conditions precedent:

         a.       Borrower  shall have executed and delivered to Bank, or caused
                  to  have  been  executed  and  delivered  to  Bank,  all  such
                  instruments,  agreements,  certificates,  opinions,  financial
                  statements,   appraisals,   evidence  of  title,  evidence  of
                  insurance,  environmental  audits,  and other  information and
                  other  documents  as the Bank  shall  require,  and all of the
                  foregoing shall be in form and content  acceptable to Bank and
                  all  instruments  and  agreements  shall be in full  force and
                  effect and binding  and  enforceable  obligations  of Borrower
                  and,  to the extent  that it is a party  thereto or  otherwise
                  bound thereby, of each other Person who may be a party thereto
                  or bound thereby including without limitation: (i) evidence of
                  existence,  good standing,  qualification  to conduct business
                  and  authority  for each Loan Party and signatory on behalf of
                  each  Loan  Party;  (ii)  all  notes,   guaranties,   security
                  agreements,  mortgages,  deeds of  trust,  pledge  agreements,
                  assignments,   financing   statements   and  other   documents
                  requested by Bank to evidence the  Indebtedness  or to create,
                  protect or perfect Liens upon the Collateral  required by Bank
                  as  security  for  the  Indebtedness  and  to  accord  Bank  a
                  perfected security position in the Collateral, subject only to
                  Permitted  Encumbrances;   (iii)  if  applicable,  a  guaranty
                  agreement  from each  Guarantor  required  by Bank;  (iv) such
                  other documents or agreements of security,  assurances of Loan
                  Document   validity,   legality   and   enforceability,    and
                  appropriate assurances of validity, perfection and priority of
                  Lien as  Bank  may  request,  including,  without  limitation,
                  delivery to the Bank of landlord waivers satisfactory to Bank,
                  and Bank shall have received proof that  appropriate  security
                  agreements,  financing statements,  mortgages, deeds of trust,
                  collateral and other documents  covering the Collateral  shall
                  have been  executed and delivered by the  appropriate  Persons
                  and  recorded  or filed in such  jurisdictions  and such other
                  steps  shall  have been  taken as  necessary  to  perfect  and
                  protect,  subject  only to Permitted  Encumbrances,  the Liens
                  granted thereby.

         b.       All actions,  proceedings,  instruments and documents required
                  to carry out the borrowings and  transactions  contemplated by
                  this  Agreement  or any  other  Loan  Document  or  incidental
                  thereto, and all other related legal matters,  shall have been
                  satisfactory to and approved by Bank.

         c.       Each Loan Party shall have  performed  and  complied  with all
                  agreements  and  conditions  contained  in the Loan  Documents
                  applicable to it and which are then in effect.

<PAGE>

         d.       Each of the  representations and warranties of each Loan Party
                  under  any Loan  Document  shall be true  and  correct  in all
                  material respects as if made on each loan Disbursement Date.

         e.       No  Default or Event of Default  shall  have  occurred  and be
                  continuing;  there shall have been no material  adverse change
                  in  the  condition   (financial  or  otherwise),   properties,
                  business,  or  operations  of any Loan Party since the date of
                  the financial statements most recently delivered to Bank prior
                  to the date of this  Agreement;  and no  provision of law, any
                  order of any Governmental Authority,  or any regulation,  rule
                  or interpretation thereof, shall have had any Material Adverse
                  Effect on the validity or enforceability of any Loan Document.

SECTION 3.        REPRESENTATIONS AND WARRANTIES

Borrower represents and warrants,  and such representations and warranties shall
be deemed to be continuing representations and warranties during the entire life
of this  Agreement,  and so long as Bank shall have any commitment or obligation
to make any loans or issue any Letters of Credit,  if applicable  and so long as
any  Indebtedness  remains unpaid and  outstanding  under any Loan Document,  as
follows:

3.1      Authority. Each Loan Party and, if applicable, each of its partners and
         members who is not a natural Person is duly organized, validly existing
         and  in  good  standing  under  the  laws  of the  jurisdiction  of its
         organization  and is duly  qualified  and  authorized to do business in
         each other  jurisdiction  in which the  character  of its assets or the
         nature of its business makes such qualification necessary.

3.2      Due  Authorization.  Each  Loan  Party  has  all  requisite  power  and
         authority to execute,  deliver and perform its  obligations  under each
         Loan  Document  to which it is a party or is  otherwise  bound,  all of
         which have been duly authorized by all necessary action, and are not in
         contravention of law or the terms of any Loan Party's organizational or
         other governing documents.

3.3      Title to  Property.  Each Loan Party has good title to all property and
         assets purported to be owned by it,  including those assets  identified
         on the financial statements most recently delivered to Bank.

3.4      Encumbrances.  There  are no  security  interests  or  other  Liens  or
         encumbrances  on, and no financing  statements on file with respect to,
         any of the property or assets of any Loan Party,  except for  Permitted
         Encumbrances.

3.5      Subsidiaries.  Borrower has no Subsidiaries  except those  specifically
         disclosed in the Defined Terms.

3.6      Taxes.  Each Loan Party has filed,  on or before their  respective  due
         dates,  all  federal,  state,  local and foreign tax returns  which are
         required to be filed,  or has obtained  extensions  for filing such tax
         returns,  and is not  delinquent  in filing such returns in  accordance
         with such  extensions,  and has paid all taxes  which  have  become due
         pursuant to those  returns or pursuant to any  assessments  received by
         any such  party,  as the case may be, to the  extent  such  taxes  have
         become due,  except to the extent such tax payments are being  actively
         and diligently contested in good faith by appropriate proceedings,  and
         if  requested  by Bank,  have been  bonded or reserved in an amount and
         manner satisfactory to Bank.

<PAGE>

3.7      No-Defaults.  There exists no default (or event which,  with the giving
         of notice or passage of time, or both, would result in a default) under
         the  provisions of any instrument or agreement  evidencing,  governing,
         securing  or  otherwise  relating  to any  Debt of any  Loan  Party  or
         pertaining to any of the Permitted Encumbrances.

3.8      Enforceability of Agreement and Loan Documents.  Each Loan Document has
         been duly executed and delivered by duly authorized officer(s) or other
         representative(s)  of each  Loan  Party and  constitutes  the valid and
         binding  obligation of each Loan Party,  enforceable in accordance with
         its terms, except to the extent that enforcement thereof may be limited
         by applicable  bankruptcy,  reorganization,  insolvency,  moratorium or
         similar laws affecting the enforcement of creditors'  rights  generally
         at the time in effect.

3.9      Non-contravention. The execution, delivery and performance by each Loan
         Party of the Loan  Documents  to which  such  Loan  Party is a party or
         otherwise  bound,  are  not  in  contravention  of  the  terms  of  any
         indenture,  agreement or  undertaking to which any such Loan Party is a
         party or by which it is bound,  except to the  extent  that such  terms
         have been  waived or that  failure to comply  with any such terms would
         not have a Material Adverse Effect.

3.10     Actions, Suits, Litigation or Proceedings. There are no actions, suits,
         litigation  or  proceedings,  at law or in equity,  and no  proceedings
         before  any  arbitrator  or by or before  any  Governmental  Authority,
         pending,  or, to the best knowledge of Borrower,  threatened against or
         affecting  any  Loan  Party,  which,  if  adversely  determined,  could
         materially  impair the right of any Loan Party to carry on its business
         substantially as now conducted or could have a Material Adverse Effect.
         No Loan  Party is under  investigation  by, or is  operating  under any
         restrictions imposed by, any Governmental Authority.

3.11     Compliance   with  Laws.   Each  Loan  Party  has  complied   with  all
         Governmental Requirements, including, without limitation, Environmental
         Laws,  to the extent  that  failure to so comply  could have a Material
         Adverse Effect.

3.12     Consents,  Approvals and Filings,  Etc.  Except as have been previously
         obtained  or as  otherwise  expressly  provided in this  Agreement,  no
         authorization,  consent,  approval,  license,  qualification  or formal
         exemption from, or any filing,  declaration or  registration  with, any
         Governmental  Authority  and  no  material  authorization,  consent  or
         approval  from any other  Person,  is required in  connection  with the
         execution,  delivery  and  performance  by any  Loan  Party of any Loan
         Document  to which it is a party.  All such  authorizations,  consents,
         approvals, licenses, qualifications,  exemptions, filings, declarations
         and  registrations  which have previously been obtained or made, as the
         case may be, are in full  force and  effect and are not the  subject of
         any attack, or to the knowledge of Borrower,  any threatened attack, in
         any material respect, by appeal, direct proceeding or otherwise.

3.13     Environmental  Representations.   No  Loan  Party  has  used  Hazardous
         Materials  on, in,  under or otherwise  affecting  any real or personal
         property now or at any time owned,  occupied or operated by such Person
         or upon which such Person has a place of business which, in any manner,
         violates any Environmental  Law, to the extent any such violation could
         result in a  Material  Adverse  Effect,  and to the best of  Borrower's
         knowledge,  no prior or current  owner,  occupant or operator of any of
         such property does or has used any Hazardous  Materials on or affecting
         such property in any manner which violates any Environmental Law to the
         extent  that any such  violation  could  result in a  Material  Adverse
         Effect.  No Loan Party has received any notice of any  violation of any
         Environmental  Law, and to the best  knowledge of the  Borrower,  there
         have been no actions  commenced or threatened by any Person against any
         such  property  or against any Loan Party for  non-compliance  with any
         Environmental Law which could result in a Material Adverse Effect.

<PAGE>

3.14     Accuracy of Information.  All financial statements previously furnished
         to Bank have been prepared in accordance  with GAAP and fairly  present
         the   financial   condition  of  Borrower  and,  as   applicable,   the
         consolidated  financial  condition of Borrower and such other Person(s)
         as such  financial  statements  purport to present,  and the results of
         their respective operations as of the dates and for the periods covered
         thereby; and since the date(s) of said financial statements,  there has
         been no material adverse change in the financial  condition of Borrower
         or any other Person covered by such financial statements.

         Each Loan Party is solvent,  able to pay its debts as they mature,  has
         capital  sufficient  to carry on its  business  and has assets the fair
         market value of which exceed its liabilities, and no Loan Party will be
         rendered insolvent,  under-capitalized or unable to pay debts generally
         as they become due by the execution or performance of any Loan Document
         to which it is a party or by which it is otherwise bound.

SECTION 4.        AFFIRMATIVE COVENANTS

Borrower  covenants  and  agrees  that,  until all  instruments  and  agreements
evidencing   each  and  every  loan,   Letter  of  Credit  and  other  financial
accommodation by the Bank to the Borrower or any Loan Party are fully discharged
and terminated, and thereafter, so long as any Indebtedness remains outstanding,
it will, and, as applicable, it will cause each Loan Party within its control or
under common control to:

4.1      Preservation of Existence, Etc. Preserve and maintain its existence and
         preserve and maintain such of its rights,  licenses,  and privileges as
         are material to the business and  operations  conducted by it;  qualify
         and remain qualified to do business in each  jurisdiction in which such
         qualification  is material to its business and  operations or ownership
         of its  properties,  continue  to  conduct  and  operate  its  business
         substantially   as  conducted  and  operated  during  the  present  and
         preceding  calendar year; at all times  maintain,  preserve and protect
         all of its franchises and trade names and preserve all the remainder of
         its  property  and keep  the same in good  repair,  working  order  and
         condition;  and from time to time make, or cause to be made, all needed
         and   proper   repairs,   renewals,   replacements,   betterments   and
         improvements thereto.

4.2      Keeping of Books;  Audits of  Collateral;  Fees.  Keep proper  books of
         record and account in which full and correct  entries  shall be made of
         all of its financial  transactions  and its assets and businesses so as
         to  permit  the  presentation  of  financial   statements  prepared  in
         accordance  with GAAP;  and permit  Bank,  or its  representatives,  at
         reasonable  times and  intervals,  at Borrower's  cost and expense,  to
         examine its books and records and to discuss its financial matters with
         its officers,  employees and independent  certified public accountants;
         and  permit  Bank  from  time  to time to  audit  Borrower's  accounts,
         inventory,  or other  Collateral,  provided  that such  audits  will be
         conducted upon reasonable notice. Borrower agrees to reimburse Bank, on
         demand,  for customary and  reasonable  fees and costs incurred by Bank
         for such audits,  and for each  appraisal of  Collateral  and financial
         analysis and examination of Borrower performed from time to time by its
         agents.

4.3      Reporting  Requirements.  Furnish to Bank,  or cause to be furnished to
         Bank, the following:

         a.       as  soon  as  possible,  and in any  event  within  three  (3)
                  calendar  days  after  becoming  aware  of the  occurrence  or
                  existence of each Default or Event of Default hereunder or any
                  material adverse change in the financial condition of any Loan
                  Party, a written  statement of the chief financial  officer of
                  Borrower  (or  in his or her  absence,  a  responsible  senior
                  officer of  Borrower),  setting forth details of such Default,
                  Event of Default or change,  and the action which Borrower has
                  taken,  or has caused to be taken,  or proposes to take, or to
                  cause to be taken, with respect thereto;

         b.       as soon as available, and in any event within ninety (90) days
                  after  and as of the end of  each  fiscal  year  of  Borrower,
                  audited financial statements of Borrower and such other of the
                  Loan Parties as may be required by the Bank, consolidated,  as
                  applicable,  including  a  balance  sheet,  income  statement,
                  statement of profit and loss, surplus reconciliation statement
                  and  statement  of cash flows,  for and as of such fiscal year
                  then ending and  including  such other  comments and financial
                  details  as are  usually  included  in similar  reports.  Such
                  financial  statements  shall be - prepared in accordance  with
                  GAAP by independent certified public accountants of recognized
                  standing  selected  by  Borrower  and  approved  by  Bank  and
                  containing  unqualified  opinions  as to the  fairness  of the
                  statements therein contained.

         c.       as soon as available, and in any event within thirty (30) days
                  after and as of the end of each calendar  month  including the
                  last such reporting period of each of Borrower's fiscal years,
                  financial  statements  of Borrower  and such of the other Loan
                  Parties  as may be  required  by the Bank,  for and as of such
                  reporting period, including a balance sheet, income statement,
                  statement of profit and loss, surplus reconciliation statement
                  and  statement  of cash  flows  for  and as of such  reporting
                  period  then  ending  and for and as of  that  portion  of the
                  fiscal year then ending, in each case,  prepared and certified
                  by the chief  financial  officer of Borrower (or in his or her
                  absence,  a responsible  senior  officer of Borrower)  and, as
                  applicable, each other Loan Party as to consistency with prior
                  financial  reports  and  accounting   periods,   accuracy  and
                  fairness of presentation

         d.       as soon as available, and in any event within thirty (30) days
                  prior  to end of each  fiscal  year  of  Borrower,  an  annual
                  proposed  budget prepared and certified by the chief financial
                  officer of  Borrower,  and  completed  in such  detail as Bank
                  shall require, in Bank's sole discretion.

         e.       as soon as available, and in any event within twenty (20) days
                  after  and  as of the  end of  each  calendar  month,  monthly
                  accounts  payable aging and accounts  receivable aging reports
                  prepared  and  certified  by the chief  financial  officer  of
                  Borrower,  and completed in such detail as Bank shall require,
                  in Bank's sole discretion.

         f.       concurrently  with each delivery of the  Financial  Statements
                  required by this section, furnish to the Bank a certificate of
                  its chief executive or financial officer stating that no Event
                  of Default or Default  has  occurred,  or if any such Event of
                  Default or Default  exists,  stating the nature  thereof,  the
                  period of  existence  thereof  and what  action  the  Borrower
                  proposes to take with respect thereto.

         g.       twenty (20) days after the end of each calendar month,  (i) an
                  Inventory  report  as of the end of the  preceding  month in a
                  form satisfactory to the Bank, in Bank's sole discretion,  and
                  (ii) a  certificate  in  the  form  required  by  Bank  and as
                  otherwise  set  forth  in  the  Advance   Formula   Agreement,
                  confirming that the aggregate  unpaid  principal amount of all
                  Revolving Loans and Reimbursement  Obligations does not exceed
                  the  limitations  as then in effect  pursuant  to the  Advance
                  Formula Agreement (or, if such is not the case, accompanied by
                  a prepayment of the Revolving Credit Note sufficient in amount
                  to  reduce  the  aggregate  unpaid  principal  amount  of  all
                  Revolving Loans and Reimbursement  Obligations to or below the
                  amount of any such  limitations  as set  forth in the  Advance
                  Formula  Agreement) and confirming  that the aggregate  unpaid
                  principal  balance of the  Revolving  Loans and  Reimbursement
                  Obligations does not exceed the Maximum Revolving Credit Loan.

<PAGE>

4.4      Financial  Covenants.  Maintain all financial covenants set forth below
         (for purposes of the financial  covenants,  definitions for capitalized
         terms not otherwise defined in this Agreement follow the covenants):

         (a)      Tangible Net Worth.

                  (i)      Maintain a minimum  Tangible  Net Worth from the date
                  of this Agreement through December 2003 of $2,200,000.00; and

                  (ii)     Commencing  January 2004, and continuing  each fiscal
                  quarter  thereafter  through the Termination Date,  maintain a
                  Tangible Net Worth equal to the minimum required  Tangible Net
                  Worth for the  preceding  fiscal  quarter,  plus fifty percent
                  (50%) of Net  Income  of  Borrower  for the  preceding  fiscal
                  quarter.

         (b)      Debt-to-Tangible   Net  Worth   Ratio.   Maintain   a  maximum
                  Debt-to-Tangible Net Worth Ratio at all times of not more than
                  the ratio set forth below during the corresponding  period set
                  forth below:

<TABLE>
<CAPTION>
<S>                                                                                     <C>
                                              Period                                     Ratio

                         From the date hereof through November 2003                     6.00:1
                         December 2003 through February 2004                            5.50:1
                         March 2004 through May 2004                                    5.10:1
                         June 2004 through August 2004                                  4.70:1
                         September 2004 through November 2004                           4.30:1
                         December 2004 through February 2004                            3.90:1
                         March 2005 through May 2005                                    3.60:1
                         June 2005 through August 2005                                  3.30:1
                         September 2005 to November 2005                                3.00:1
</TABLE>

         (c)      Net Income.  Maintain a minimum  quarterly Net Income from the
                  date of this Agreement  through the Termination  Date for each
                  quarter  beginning with the quarter ending  September 30, 2003
                  of $-0-.

4.5      Further Assurances;  Financing Statements.  Furnish Bank, at Borrower's
         cost and expense,  upon Bank's request and in form satisfactory to Bank
         (and execute and deliver or cause to be executed and  delivered),  such
         additional pledges,  assignments,  mortgages, Lien instruments or other
         security  instruments,  consents,  acknowledgments,  subordinations and
         financing  statements covering any or all of the Collateral required by
         Bank to secure any  Indebtedness  together with such other documents or
         instruments  as Bank may require to effectuate  more fully the purposes
         of any Loan Document.

4.6      Insurance.  Maintain insurance coverage by insurers  acceptable to Bank
         on its physical assets and against other business risks in such amounts
         and of such types as are  customarily  carried by companies  similar in
         size and nature or as may  otherwise  be required  by Bank,  and in the
         event of acquisition of additional  property,  real or personal,  or of
         the  incurrence  of  additional  risks  of any  nature,  increase  such
         insurance  coverage  in such  manner  and to  such  extent  as  prudent
         business  judgment and present practice would dictate;  and in the case
         of all  policies  covering  property  subject to any Loan  Document  or
         property  in which the Bank shall  have a Lien of any kind  whatsoever,
         other than those policies  protecting  against casualty  liabilities to
         strangers,  all such  insurance  policies  shall  provide that the loss
         payable  thereunder  shall be  payable  to  Borrower  (or other  Person
         providing  Collateral) and Bank, with  mortgagee's  clauses in favor of
         and satisfactory to Bank for all such policies, and such policies shall
         also  provide that they may not be canceled or changed  without  thirty
         (30) days' prior written notice to Bank.  Upon the request of Bank, all
         of said policies, or copies thereof, including all endorsements thereon
         and those required hereunder, shall be deposited with Bank.

<PAGE>

4.7      Compliance  with ERISA.  In the event that any Loan Party or any of its
         Subsidiaries  maintain(s)  or  establish(es)  a Pension Plan subject to
         ERISA,  (a)  comply  in all  material  respects  with all  requirements
         imposed  by ERISA as  presently  in  effect or  hereafter  promulgated,
         including,  but  not  limited  to,  the  minimum  funding  requirements
         thereof;  (b) promptly notify Bank upon the occurrence of a "reportable
         event" or "prohibited transaction" within the meaning of ERISA, or that
         the PBGC or any Loan Party has instituted or will institute proceedings
         to terminate  any Pension  Plan,  together  with a copy of any proposed
         notice of such event  which may be  required to be filed with the PBGC;
         and (c)  furnish  to Bank (or cause the plan  administrator  to furnish
         Bank)  a  copy  of the  annual  return  (including  all  schedules  and
         attachments) for each Pension Plan covered by ERISA, and filed with the
         Internal Revenue Service by any Loan Party not later than ten (10) days
         after such report has been so filed.

4.8      Environmental Covenants. Comply with all applicable Environmental Laws,
         and  maintain  all  permits,  licenses  and  approvals  required  under
         applicable  Environmental Laws, where the failure to do so could have a
         Material Adverse Effect.  Promptly notify Bank, in writing,  as soon as
         Borrower becomes aware of any condition or circumstance which makes any
         of the  environmental  representations  or warranties set forth in this
         Agreement  incomplete,  incorrect or inaccurate in any material respect
         as of any date; and promptly provide to Bank,  immediately upon receipt
         thereof,  copies  of any  material  correspondence,  notice,  pleading,
         citation, indictment,  complaint, order, decree, or other document from
         any source asserting or alleging a violation of any  Environmental  Law
         by any Loan Party,  or of any  circumstance or condition which requires
         or may  require,  a  financial  contribution  by any Loan  Party,  or a
         clean-up, removal, remedial action or other response by or on behalf of
         any Loan  Party,  under  applicable  Environmental  Law, or which seeks
         damages or civil, criminal or punitive penalties from any Loan Party or
         any violation or alleged violation of any  Environmental  Law. Borrower
         hereby  agrees to  indemnify,  defend and hold Bank,  and any of Bank's
         past, present and future officers, directors, shareholders,  employees,
         representatives  and  consultants,  harmless  from any and all  claims,
         losses, damages, suits, penalties, costs, liabilities,  obligations and
         expenses (including, without limitation,  reasonable legal expenses and
         attorneys' fees, whether inside or outside counsel is used) incurred or
         arising out of any claim,  loss or damage of any property,  injuries to
         or death of any  persons,  contamination  of or adverse  effects on the
         environment, or other violation of any applicable Environmental Law, in
         any  case,  caused  by any  Loan  Party  or in any way  related  to any
         property  owned or operated by any Loan Party or due to any acts of any
         Loan Party or any of its officers, directors, shareholders,  employees,
         consultants  and/or  representatives   INCLUDING  ANY  CLAIMS,  LOSSES,
         DAMAGES, SUITS, PENALTIES, COSTS, LIABILITIES, OBLIGATIONS OR EXPENSES,
         RESULTING  FROM  BANK'S  OWN  NEGLIGENCE;  provided  however,  that the
         foregoing  indemnification shall not be applicable,  and Borrower shall
         not be liable for any such claims, losses,  damages,  suits, penalties,
         costs, liabilities, obligations or expenses, to the extent (but only to
         the  extent)  the same  arise or result  from any gross  negligence  or
         willful misconduct of Bank or any of its agents or employees.

<PAGE>

SECTION 5.        NEGATIVE COVENANTS

Borrower  covenants  and  agrees  that,  until all  instruments  and  agreements
evidencing   each  and  every  loan,   Letter  of  Credit  and  other  financial
accommodation by the Bank to the Borrower or any Loan Party are fully discharged
and terminated, and thereafter, so long as any Indebtedness remains outstanding,
it will not,  and it will not allow any Loan Party  within its  control or under
common control to, without the prior written consent of the Bank:

5.1      Capital  Structure;   Business  Objects  or  Purpose;   Mergers;  Asset
         Disposition;  Acquisitions.  Purchase,  acquire  or  redeem  any of its
         equity  ownership  interests;  or  enter  into  any  reorganization  or
         recapitalization; or reclassify its equity ownership interests; or make
         any  material  change in its  capital  structure  or  general  business
         objects or  purpose;  or change  its name,  or enter into any merger or
         consolidation, whether or not the surviving entity thereunder; or sell,
         lease, transfer,  relocate or dispose of all, substantially all, or any
         material part of its assets  (whether in a single  transaction  or in a
         series of  transactions);  or purchase or  otherwise  acquire or become
         obligated for the purchase of all or substantially all of the assets or
         business  interests  of any  Person  or any  shares  of  stock or other
         ownership  interests of any Person or in any other manner effectuate or
         attempt to effectuate an expansion of present  business by acquisition.
         Notwithstanding  the  foregoing,  nothing  in this  Section  5.1  shall
         prohibit or otherwise  restrict  Borrower  from issuing  common  stock,
         preferred  stock  (including  a newly  designated  series of  preferred
         stock), options,  warrants and other equity securities to raise capital
         or as consideration in connection with a business  transaction  entered
         into in the ordinary course of business;  provided,  however,  that any
         such  action by  Borrower  (i) does not  result in a  violation  of any
         covenants, representations or warranties contained in this Agreement or
         any other Loan Document and (ii) does not result in any material change
         in ownership of Borrower unless Bank is notified by Borrower in writing
         at least thirty (30) days prior to any such action by Borrower.

5.2      Guaranties.  Guarantee, endorse, or otherwise become secondarily liable
         for or upon the  obligations  or Debt of others  (whether  directly  or
         indirectly), except guaranties in favor of and satisfactory to Bank and
         endorsements  for  deposit  or  collection  in the  ordinary  course of
         business.

5.3      Debt. Become or remain obligated for any Debt, except: Indebtedness and
         other Debt from time to time  outstanding and owing to Bank;  unsecured
         trade,  utility or  non-extraordinary  accounts  payable arising in the
         ordinary  course  of  business;   Subordinated  Debt;   purchase  money
         indebtedness  incurred for the purpose of purchasing or acquiring fixed
         assets;  and Debt (including,  without  limitation,  capitalized  lease
         obligations)   outstanding  as  of  the  date  hereof  if  specifically
         disclosed in the most recent financial statements delivered to the Bank
         prior to the date hereof.

5.4      Encumbrances.  Create,  incur,  assume or suffer to exist any Lien upon
         any of its property or assets, whether now owned or hereafter acquired,
         except for Permitted Encumbrances.

5.5      Investments;  Extensions of Credit. Make or allow to remain outstanding
         any investment  (whether such  investment  shall be of the character of
         investment  in shares  of stock,  evidences  of  indebtedness  or other
         securities  or otherwise)  in, or any loans,  advances or extensions of
         credit to, any  Person,  other than (a)  Borrower's  current  ownership
         interests  in  those  Subsidiaries  of  Borrower,  if  any,  which  are
         specifically  disclosed in the definition of Subsidiaries,  and (b) any
         investment in direct obligations of the United States of America or any
         agency  thereof,   or  in  certificates  of  deposit  issued  by  Bank,
         maintained  consistent  with Borrower's or such  Subsidiary's  business
         practices prior to the date hereof;  provided,  that no such investment
         shall  mature  more  than one (1) year  after the date when made or the
         issuance thereof, and (c) marketable, traded stock and other securities
         issued by entities  organized  under the laws of the United States or a
         state thereof.

<PAGE>

5.6      Pension Plans.  Except in compliance with this  Agreement,  enter into,
         maintain, or make contribution to, directly or indirectly,  any Pension
         Plan that is subject to ERISA.

5.7      Subordinate  Indebtedness.  Subordinate any indebtedness due to it from
         any Person to indebtedness of other creditors of such Person.

SECTION 6.        EVENTS OF DEFAULT

6.1      Events of Default.  The occurrence or existence of any of the following
         conditions or events shall constitute an "Event of Default" hereunder:

         (a)      non-payment of any principal,  interest or other sums due upon
                  the  Indebtedness  within five (5) days following the date due
                  by maturity,  acceleration or otherwise, or failure to pay any
                  Indebtedness owing on a demand basis upon demand;

         (b)      any failure or neglect by Borrower or any Loan Party to comply
                  with,  or  breach  of or  default  under,  any of  the  terms,
                  conditions,   covenants  or  agreements   set  forth  in  this
                  Agreement or any other Loan Document, and such failure, breach
                  or default is not cured within ten (10) days following written
                  demand by Bank;

         (c)      any representation,  warranty,  financial statement,  or other
                  information  made,  given or furnished to Bank by or on behalf
                  of any Loan Party in any Loan  Document  shall be, or prove to
                  have been,  untrue or incorrect  in any material  respect when
                  made, given or furnished;

         (d)      any  change  in the  executive  management  (i.e.,  the  chief
                  executive officer,  chief operating officer or chief financial
                  officer),  or any change in the majority  ownership or control
                  of  Borrower,   whether  by  reason  of   incapacity,   death,
                  resignation,  termination or otherwise  which,  in Bank's sole
                  judgment, could become a Material Adverse Effect;

         (e)      any   expiration,   or  termination  by  Samsung   Corporation
                  ("Samsung") of, that certain Distribution  Agreement ("Samsung
                  Agreement"),  dated August 30, 1999,  by and between  Borrower
                  and  Samsung  Corporation,  unless (i)  Samsung  continues  to
                  operate  and  honor  the  terms  of  the  Samsung   Agreement,
                  notwithstanding  any such termination or expiration,  and (ii)
                  the Samsung Agreement is renewed,  extended or replaced with a
                  comparable  agreement  within  thirty (30) days  following the
                  termination or expiration thereof ;

         (f)      any termination or breach of any guaranty,  pledge, collateral
                  assignment or subordination  agreement  relating to all or any
                  part of the Indebtedness;

         (g)      any   failure  by   Borrower  to  pay  when  due  any  of  its
                  indebtedness  (other than to the Bank) or in the observance or
                  performance of any term, covenant or condition in any document
                  evidencing, securing or relating to such indebtedness;

<PAGE>

         (h)      any levy or writ of  attachment or  garnishment  or other like
                  judicial  process is filed or issued upon the  Borrower or any
                  of the Collateral,  including  without limit,  any accounts of
                  Borrower  with the  Bank,  involving  any  indebtedness  in an
                  amount in excess of $50,000.00,  which is not stayed or lifted
                  within  sixty  (60) days  following  the date filed or levied;
                  provided,  however,  that  Borrower  shall  provide  Bank with
                  written notice of any such filing or issuance  notwithstanding
                  the  foregoing   limitation  on  the  amount  of  indebtedness
                  involved;

         (i)      any loss, theft,  substantial damage or destruction to, or of,
                  any Collateral,  which in Bank's sole judgment, could become a
                  Material Adverse Effect;

         (j)      any sale or other  disposition by Borrower of any  substantial
                  portion of its assets or property or voluntary  suspension  of
                  the  transaction of business by Borrower or any Loan Party, or
                  dissolution, termination of existence, merger or consolidation
                  by Borrower, or any Loan Party;

         (k)      if Bank deems the margin of Collateral  insufficient or itself
                  insecure, in good faith believing that the prospect of payment
                  of the  Indebtedness  or  performance  of  this  Agreement  is
                  impaired  or shall fear  deterioration,  removal,  or waste of
                  Collateral; or

         (l)      if (i) Borrower applies for or consents to the appointment of,
                  or the taking of possession by, a receiver, custodian, trustee
                  or liquidator of itself or of all or a substantial part of its
                  property,   (ii)  admits  in  writing  its  inability,  or  be
                  generally unable, to pay its debts as they become due or cease
                  operations  of its  present  business,  (iii)  makes a general
                  assignment  for the  benefit of  creditors,  (iv)  commences a
                  voluntary case under any state or Federal  bankruptcy laws (as
                  now or hereafter in effect),  (v) is adjudicated a bankrupt or
                  insolvent,  (vi) files a petition seeking to take advantage of
                  any other law  providing  for the  relief  of  debtors,  (vii)
                  acquiesces to, or fails to have dismissed,  within ninety (90)
                  days,  any petition filed against it in any  involuntary  case
                  under such bankruptcy laws, or (viii) takes any action for the
                  purpose of effecting any of the foregoing.

6.2      Remedies  Upon Event of Default.  Upon the  occurrence  and at any time
         during  the  existence  or  continuance  of any Event of  Default,  but
         without  impairing  or  otherwise  limiting  the Bank's right to demand
         payment of all or any portion of the  Indebtedness  which is payable on
         demand,  at Bank's option,  Bank may give notice to Borrower  declaring
         all  or  any  portion  of  the   Indebtedness   remaining   unpaid  and
         outstanding,  whether under the notes  evidencing the  Indebtedness  or
         otherwise, to be due and payable in full without presentation,  demand,
         protest, notice of dishonor, notice of intent to accelerate,  notice of
         acceleration  or other  notice  of any kind,  all of which  are  hereby
         expressly  waived,  whereupon all such  Indebtedness  shall immediately
         become due and payable.  Furthermore,  upon the occurrence of a Default
         or Event of Default and at any time during the existence or continuance
         of any Default or Event of Default,  but without impairing or otherwise
         limiting the right of Bank,  if reserved  under any Loan  Document,  to
         make or withhold  financial  accommodations  at its discretion,  to the
         extent not yet  disbursed,  any  commitment by Bank to make any further
         loans or, if  applicable,  issue any  further  Letters of Credit  shall
         automatically  terminate.  The  foregoing  rights and  remedies  are in
         addition  to  any  other  rights,  remedies  and  privileges  Bank  may
         otherwise  have or which may be  available  to it,  whether  under this
         Agreement, any other Loan Document, by law, or otherwise.

6.3      Waiver of Defaults.  No Default or Event of Default  shall be waived by
         Bank except in a written  instrument  specifying the scope and terms of
         such  waiver and  signed by an  authorized  officer  of Bank,  and such
         waiver  and  shall be  effective  only  for the  specific  time(s)  and
         purpose(s) given. No single or partial exercise of any right,  power or
         privilege  hereunder,  or any  delay  in the  exercise  thereof,  shall
         preclude other or further  exercise of Bank's rights.  No waiver of any
         Default  or Event of  Default  shall  extend  to any  other or  further
         Default  or Event of  Default.  No  forbearance  on the part of Bank in
         enforcing  any of Bank's  rights or  remedies  under any Loan  Document
         shall  constitute a waiver of any of its rights or  remedies.  Borrower
         expressly  agrees  that this  Section  may not be waived or modified by
         Bank by course of performance, estoppel or otherwise.

<PAGE>

6.4      Discretionary Credit and Credit Payable Upon Demand. TO THE EXTENT THAT
         ANY OF THE  INDEBTEDNESS  SHALL,  AT ANY TIME,  BE PAYABLE UPON DEMAND,
         NOTHING CONTAINED IN THIS AGREEMENT, OR ANY OTHER LOAN DOCUMENT,  SHALL
         BE  CONSTRUED TO PREVENT BANK FROM MAKING  DEMAND,  WITHOUT  NOTICE AND
         WITH OR WITHOUT  REASON,  FOR  IMMEDIATE  PAYMENT OF ALL OR ANY PART OF
         SUCH  INDEBTEDNESS  AT ANY TIME OR TIMES,  WHETHER  OR NOT A DEFAULT OR
         EVENT OF DEFAULT HAS OCCURRED OR EXISTS.  IN THE EVENT THAT SUCH DEMAND
         IS  MADE  UPON  ANY  PORTION  OF THE  INDEBTEDNESS,  THE  BANK,  AT ITS
         ELECTION, MAY TERMINATE ANY COMMITMENT TO MAKE ANY FURTHER LOANS OR, IF
         APPLICABLE, ISSUE ANY FURTHER LETTERS OF CREDIT UNDER THIS AGREEMENT OR
         OTHERWISE.  FURTHERMORE, TO THE EXTENT ANY LOAN DOCUMENT AUTHORIZES THE
         BANK,  AT ITS  DISCRETION,  TO MAKE  OR TO  DECLINE  TO MAKE  FINANCIAL
         ACCOMMODATIONS TO THE BORROWER,  NOTHING CONTAINED IN THIS AGREEMENT OR
         ANY OTHER LOAN  DOCUMENT  SHALL BE  CONSTRUED  TO LIMIT OR IMPAIR  SUCH
         DISCRETION OR TO COMMIT OR OTHERWISE OBLIGATE THE BANK TO MAKE ANY SUCH
         FINANCIAL ACCOMMODATION.

SECTION 7.        MISCELLANEOUS

7.1      Governing  Law.  Each  Loan  Document  shall  be  deemed  to have  been
         delivered  in and shall be governed by and  construed  and  enforced in
         accordance  with the laws of the State of Texas,  except to the  extent
         that the UCC,  other  personal  property  law or real  property  law of
         another  jurisdiction  where  Collateral is located is applicable,  and
         except to the extent expressed to the contrary in any Loan Document.

7.2      Costs and Expenses.  Borrower shall pay Bank, on demand,  all costs and
         expenses, including, without limitation, reasonable attorneys' fees and
         legal expenses (whether inside or outside counsel is used), incurred by
         Bank in perfecting, revising, protecting or enforcing any of its rights
         or remedies  against  any Loan Party or any  Collateral,  or  otherwise
         incurred by Bank in connection  with any Default or Event of Default or
         the  enforcement of the Loan Documents or the  Indebtedness.  Following
         Bank's  demand  upon  Borrower  for the  payment  of any such costs and
         expenses,  and until the same are paid in full,  the  unpaid  amount of
         such costs and expenses shall  constitute  Indebtedness  and shall bear
         interest at the highest  default rate of interest  provided in any Loan
         Document.

7.3      Successors and Assigns; Participation.  This Agreement shall be binding
         upon and shall  inure to the  benefit  of  Borrower  and Bank and their
         respective  successors and assigns.  The foregoing  shall not authorize
         any assignment or transfer by Borrower of any of its respective rights,
         duties or obligations  hereunder,  such  assignments or transfers being
         expressly  prohibited.  Bank,  however,  may freely assign,  whether by
         assignment,  participation  or  otherwise,  its rights and  obligations
         hereunder, and is hereby authorized to disclose to any such assignee or
         participant  (or proposed  assignee or  participant)  any  financial or
         other  information  in its knowledge or  possession  regarding any Loan
         Party or the Indebtedness.

<PAGE>

7.4      Reliance on and Survival of Various Provisions.  All terms,  covenants,
         agreements,  representations  and  warranties of any Loan Party made in
         any Loan Document, or in any certificate,  report,  financial statement
         or other  document  furnished  by or on  behalf  of any  Loan  Party in
         connection with any Loan Document,  shall be deemed to have been relied
         upon by Bank, notwithstanding any investigation heretofore or hereafter
         made by Bank or on Bank's behalf, and those covenants and agreements of
         Borrower  set forth in  Section  4.8  hereof  (together  with any other
         indemnities of Borrower contained elsewhere in any Loan Document) shall
         survive the  termination of this Agreement and the repayment in full of
         the Indebtedness.

7.5      Complete  Agreement;   Conflicts.   This  Agreement,   the  other  Loan
         Documents,  and any commitment  letter  previously  issued by Bank with
         respect  thereto  (provided that in the event of any  inconsistency  or
         conflict  between this Agreement and the other Loan  Documents,  on one
         hand, and such commitment letter, on the other hand, this Agreement and
         the Loan Documents shall control),  contain the entire agreement of the
         parties thereto and supercede all prior  agreements and  understandings
         related to the subject matter hereof,  and none of the parties shall be
         bound by anything not expressed in writing.  In the event that,  and to
         the extent that,  any of the terms,  conditions or provisions of any of
         the other Loan Documents are inconsistent  with or in conflict with any
         of  the  terms,  conditions  or  provisions  of  this  Agreement,   the
         applicable  terms,  conditions and  provisions of this Agreement  shall
         govern and control.  Any amendments or modifications hereto shall be in
         writing signed by all parties.

7.6      Counterparts.   This  Agreement  may  be  executed  in  any  number  of
         counterparts and by different parties on separate counterparts, each of
         which, when executed and delivered,  shall be deemed to be an original,
         and all of which, when taken together, shall constitute but one and the
         same agreement.

7.7      WAIVER OF JURY TRIAL. BANK AND BORROWER EACH ACKNOWLEDGE THAT THE RIGHT
         TO TRIAL BY JURY IS A  CONSTITUTIONAL  ONE,  BUT THAT IT MAY BE WAIVED.
         EACH OF  THEM,  AFTER  CONSULTING  OR  HAVING  HAD THE  OPPORTUNITY  TO
         CONSULT,  WITH  COUNSEL OF THEIR  CHOICE,  KNOWINGLY,  VOLUNTARILY  AND
         INTENTIONALLY  WAIVES  ANY RIGHT  EITHER OF THEM MAY HAVE TO A TRIAL BY
         JURY IN ANY  LITIGATION  BASED UPON OR ARISING OUT OF ANY LOAN DOCUMENT
         OR ANY OF THE  TRANSACTIONS  CONTEMPLATED  BY THE LOAN DOCUMENTS OR ANY
         COURSE OF CONDUCT,  DEALING,  STATEMENTS (WHETHER ORAL OR WRITTEN),  OR
         ACTION OF EITHER OF THEM.  THESE PROVISIONS SHALL NOT BE DEEMED TO HAVE
         BEEN  MODIFIED  IN ANY  RESPECT OR  RELINQUISHED  BY BANK OR  BORROWER,
         EXCEPT BY A WRITTEN INSTRUMENT EXECUTED BY EACH OF THEM.

7.8      NO ORAL AGREEMENTS.  THIS AGREEMENT AND THE OTHER "LOAN AGREEMENTS" (AS
         DEFINED IN SECTION  26.02(A)(2)  OF THE TEXAS BUSINESS & COMMERCE CODE,
         AS AMENDED) REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES, AND THIS
         AGREEMENT AND THE OTHER WRITTEN LOAN AGREEMENTS MAY NOT BE CONTRADICTED
         BY EVIDENCE OF PRIOR,  CONTEMPORANEOUS  OR SUBSEQUENT  ORAL  AGREEMENTS
         BETWEEN THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE
         PARTIES.

               (The balance of this page intentionally left blank)

<PAGE>

WITNESS the due execution hereof as of the day and year first above written.

<TABLE>
<CAPTION>
<S>                                                       <C>
BANK:                                                     BORROWER:
----                                                      --------
COMERICA BANK                                             GVI SECURITY, INC.,
                                                          D/B/A/ Samsung CCTV
                                                          a Delaware corporation

By:      /s/ Jeff Bundy                                   By:      /s/ Thomas Wade
   -----------------------------------------                  -----------------------------------------
         Jeff Bundy                                           Thomas Wade
         Assistant Vice President - Texas Division            President, CEO and Chairman
                                                              of the Board

ADDRESS:                                                  ADDRESS:
-------                                                   -------
P.O. Box 650282                                           1621 West Crosby Street
Dallas, Texas 75265-0282                                  Suite 104
Mail Code 6596                                            Carrollton, Texas 75006

Attn:    Jeff Bundy                                       Attn:    /s/ John T Lagnese
                                                                 --------------------
Facsimile:  214-890-5186                                  Facsimile         972-245-7333
                                                                   ---------------------
</TABLE>

<PAGE>

                                    EXHIBIT A

                                 EXISTING LIENS

                                      NONEEXHIBIT 10.1

                            ASSET PURCHASE AGREEMENT
                                  by and among
                      ADVANCED PLANT PHARMACEUTICALS, INC.

                                   as "SELLER"
                                       and
                            AMAZIN NUTRITIONALS, INC.
                                   as "BUYER"

                            ASSET PURCHASE AGREEMENT

This Asset Purchase Agreement ("Agreement"), dated as of January 2, 2004, is by
and among AMAZING NUTRITIONALS, Inc., a Delaware corporation doing business at
43 West 33rd Street, 6th Floor, New York, New York 10001 ("ANI" or "Buyer") and
ADVANCED PLANT PHARMACEUTICALS, INC., a Delaware Corporation, doing business at
43 West 33rd Street, 6th Floor, New York, New York 10001, ("Seller").

                                    RECITALS

A. Seller owns certain assets which it uses in its conduct of the Business (as
defined below).

B. Buyer desires to purchase from Seller, and Seller desires to sell to Buyer,
such assets as more specifically identified below and in Schedules attached
hereto, upon the terms and subject to the conditions of this Agreement.

                                    AGREEMENT

NOW THEREFORE, in consideration of the mutual covenants and promises contained
herein and for other good and valuable consideration, the receipt and adequacy
of which is hereby acknowledged, the parties hereto agree as follows:

ARTICLE I

                                   DEFINITIONS

1.1 Defined Terms. As used herein, the terms below shall have the following
meanings. Any of such terms, unless the context otherwise requires, may be used
in the singular or plural, depending upon the reference.

1.2 "Affiliate" shall have the meaning set forth in the Securities Exchange Act
of 1934, as amended, and the rules and regulations thereunder.

1.3 "Ancillary Agreements" shall mean the Bill of Sale, executed as of the
Closing Date.

1.4 "Assets" shall mean all of the right, title and interest of Seller in and to
the business, properties, assets and rights of any kind, whether tangible or
intangible, and constituting, or used or useful in connection with, or related
to, the Business, including without limitation all of Seller's right, title and
interest in the following (but not including, in any case, the Excluded Assets),
as set forth on Schedule 1.4, including:

1.5 "Balance Sheet" shall mean the balance sheet of Seller at the date indicated
thereon, together with the notes thereon.

1.6 "Books and Records" shall mean (a) all records and lists of Seller
pertaining to the Assets, (b) all records and lists which pertain to the
Business, customers of the Business, suppliers of the Business, or personnel of

<PAGE>

Seller working in connection with the Business, (c) all product, business and
marketing plans of Seller, and (d) all books, ledgers, trial balances, files,
reports, plans, drawings and operating records of every kind maintained by
Seller relating to the Assets, but excluding the originals of Seller's minute
books, stock books, tax returns and accounting ledgers (provided that Buyer will
be provided copies of tax returns and accounting records if it so requests).

1.7 "Business" shall mean Seller's product to be sold pursuant to this
Agreement.

1.8 "Closing" or "Closing Date" shall mean a date occurring as soon as possible,
but not more than forty-five (45) days, after satisfaction of all conditions to
Closing set forth in Article VII of this Agreement, or such other date as Buyer
and Seller shall mutually agree upon.

1.9 "Closing Balance Sheet" shall mean the Balance Sheet dated the as of the
Closing Date.

1.10 "Closing Financial Statements" shall mean the Closing Balance Sheet and the
income statement dated as of the Closing Date.

1.11 "Code" shall mean the Internal Revenue Code of 1986, as amended, and the
rules and regulations thereunder.

1.12 "Consent" shall mean any consent, approval, authorization, waiver, permit,
grant, franchise, concession, agreement, license, exemption or order of,
registration, certificate, declaration or filing with, or report or notice to,
any person or entity, including but not limited to any governmental authority.

1.13 "Contract" shall mean any agreement, contract, note, loan, evidence of
indebtedness, purchase, order, letter of credit, franchise agreement,
undertaking, covenant not to compete, employment agreement, license, instrument,
obligation or commitment to which Seller is a party or is bound and which
relates to the Business or the Assets, whether oral or written.

1.14 "Damages" shall mean any and all claims, damages, costs, losses (including
without limitation diminution in value), Taxes, liabilities, judgments,
penalties, fines, obligations, lawsuits, deficiencies, demands and expenses
(whether or not arising out of third-party claims), including without limitation
interest, penalties, costs of mitigation, losses in connection with any
environmental law (including without limitation any clean-up or remedial
action), lost profits and other losses resulting from any shutdown or
curtailment of operations, damages to the environment, attorneys' fees, experts'
fees and all amounts paid in investigation, defense or settlement of any of the
foregoing.

1.15 "Encumbrance" shall mean any claim, lien, pledge, option, charge, easement,
security interest, deed of trust, mortgage, right-of-way, encroachment, building
or use restriction, conditional sales agreement, encumbrance or other right of
third parties, whether voluntarily incurred or arising by operation of law, and
includes, without limitation, any agreement to give any of the foregoing in the
future, and any contingent sale or other title retention agreement or lease in
the nature thereof.

1.16 "Equipment" shall mean the office equipment of Seller exclusively used to
operate in connection with the Business and all tools, supplies, equipment,
machinery, signs and other tangible personal property owned by Seller and used
in connection with the Business.

1.17 "Financial Statements" shall mean the Year-End Financial Statements, the
Interim Financial Statements and the Closing Financial Statements.

1.18 "Intellectual Property" shall mean any and all United States and foreign:
(a) patents (including reexaminations, design patents, industrial designs and
utility models) and patent applications (including docketed patent disclosures
awaiting filing, provisional applications, reissues, divisions, continuations,
continuations-in-part and extensions), patent disclosures awaiting filing
determination, inventions and improvements thereto; (b) trademarks, service
marks, trade names, trade dress, logos, business and product names, slogans, and
registrations and applications for registration thereof; (c) copyrights

<PAGE>

(including software) and registrations thereof; (d) inventions, processes,
designs, formulae, trade secrets, know-how, industrial models, confidential and
technical information, manufacturing, engineering and technical drawings,
product specifications and confidential business information; (e) mask work and
other rights and registrations thereof; (f) intellectual property rights similar
to any of the foregoing; (g) copies and tangible embodiments thereof (in
whatever form or medium, including electronic media).

1.19 "Inventory" shall mean all of Seller's finished goods, accessory goods and
raw materials inventory, and all of Seller's new and/or usable repair or
replacement parts, supplies, and packaging items and similar items with respect
to the Business, in each case, wherever the same may be located.

1.20 "Material Adverse Effect" or "Material Adverse Change" shall mean with
respect to the Business or the Assets any significant and substantial adverse
effect or change in the condition (financial or other), business, results of
operations, prospects, assets, liabilities or operations of the Business and/or
the Assets or on the ability of Seller to consummate the transactions
contemplated hereby, or any event or condition which would, with the passage of
time, constitute a "Material Adverse Effect" or "Material Adverse Change.

1.21 "Permits" shall mean all licenses, permits, franchises, approvals,
authorizations, consents or orders of, or filings with, any governmental
authority, whether foreign, federal, state or local, or any other person,
necessary or desirable for the past, present or anticipated conduct of, or
relating to the operation of, the Business.

1.22 "Representative" shall mean any officer, director, principal, attorney,
agent, employee or other representative.

1.23 "Tax" shall mean any federal, state, local, foreign or other tax, levy,
impost, fee, assessment, custom duty, or other government charge, including
without limitation income, estimated income, business, occupation, franchise,
property, payroll, personal property, sales, transfer, use, employment,
commercial rent, occupancy, franchise or withholding taxes, and any premium,
including without limitation interest, penalties and additions in connection
therewith.

1.24 "Warranties" shall mean standard and customary warranties provided by
Seller in connection with products sold by Seller in connection with the
Business, as set forth on Schedule 4.18.

1.25 "Year-End Financial Statements" shall mean the Balance Sheets and income
statements dated as the Seller's fiscal year ended 2003.

                                   ARTICLE II
                           PURCHASE AND SALE OF ASSETS

2.1 Transfer of Assets. Upon the terms and subject to the conditions contained
herein, at the Closing, Seller will sell, convey, transfer, assign and deliver
to Buyer free and clear of any Encumbrance (other than Assumed Liabilities), and
Buyer will acquire from Seller, the Assets.

2.2 Purchase Price.

2.2.1 Purchase Price. Upon the terms and subject to the conditions set forth
herein, at the Closing, the Buyer shall pay to Seller, in consideration for the
Assets, the following (the "Purchase Price") and issue to Seller THREE MILLION
THREE HUNDRED THOUSAND SHARES (3,300,000) of ANI's common stock , $0.001 par
value, delivered directly to the Seller (the "Closing Shares"); and

2.2.2 Allocation of Purchase Price. The Purchase Price shall be allocated among
the Assets in the manner required by Section 1060 of the Code and regulations
thereunder. Buyer and Seller agree to each prepare and file on a timely basis
with the Internal Revenue Service substantially identical initial and
supplemental Internal Revenue Service Forms 8594 "Asset Acquisition Statements
Under Section 1060."

<PAGE>

2.3 Closing Date. The transaction shall close on as of January 1, 2004, at a
place and time to be determined by the parties.

2.4 Closing Costs; Transfer Taxes and Fees. Seller shall be responsible for
paying (i) any documentary and transfer taxes and any sales, use or other taxes
imposed by reason of the transfers of Assets provided hereunder and any
deficiency, interest or penalty asserted with respect thereto and (ii) all costs
of obtaining the transfer of existing Permits which may be lawfully transferred,
(iii) all fees and costs of recording or filing all applicable conveyancing
instruments described in Section 3.1, and (iv) all fees and costs of recording
or filing all UCC termination statements and other releases of Encumbrances.

2.5 Risk of Loss. All risk of loss with respect to the Assets and Business of
Seller on or before the Closing Date shall remain the sole risk of Seller.

                                   ARTICLE III
                                     CLOSING

3.1 Conveyances at Closing by Seller. To effect the sale and transfer referred
to in Section 2.1 hereof and subject to satisfaction or waiver by Seller of the
conditions set forth in Section 7.2 hereof, at Closing, Seller agrees to execute
and deliver to Buyer, or file with such governmental authorities as may be
appropriate:

3.1.1 one or more bills of sale, each in the form of Exhibit A attached hereto,
conveying in the aggregate all of Seller's owned personal property included in
the Assets, free and clear of all Encumbrances;

3.1.2 the Closing Financial Statements;

3.1.3 the certificates and other documents described in Article VII hereof;

3.1.4 all documents necessary to release the Assets from all Encumbrances;

3.1.5 resolutions adopted by Seller's board of directors and, to the extent
necessary, shareholders approving this Agreement, certified by the secretary of
Seller;

3.1.6 a certificate from the Secretary of State of the State of Pennsylvania as
to Seller's good standing as of the date of the Closing; and

3.1.7 such other instruments as shall be reasonably requested by Buyer to vest
in Buyer title in and to the Assets in accordance with the provisions hereof,
all of which instruments including those specifically listed above shall be in
form and substance acceptable to Seller and its counsel.

3.2 Conveyances at Closing by Buyer. To effect the assumption of liabilities
referred to in Section 2.2 hereof and the payment obligations set forth in
Section 2.4 hereof, subject to satisfaction or waiver by Buyer of the conditions
set forth in Section 7.1 hereof, at Closing, Buyer agrees to execute which will
be retained by Buyer, deliver to Seller, or file with such governmental
authorities as may be appropriate:

3.2.1 the Closing Shares pursuant to Section 2.4.1.1.1 hereof;

3.2.2 the certificates and other documents described in Article VII hereof;

3.2.3 such other instruments as shall be reasonably requested by Seller in
accordance with the provisions hereof, all of which instruments including those
specifically listed above shall be in the form and substance reasonably
acceptable to Buyer and its counsel.

<PAGE>

                                   ARTICLE IV
                    REPRESENTATIONS AND WARRANTIES OF SELLER

Seller hereby represents and warrants to Buyer as follows, which representations
and warranties as of the dates of delivery of the respective Schedules and as of
the Closing Date shall be true and correct:

4.1 Organization of Seller. Seller is a corporation duly organized, validly
existing and in good standing under the laws of the State of Pennsylvania.
Copies of the Certificate of Incorporation and Bylaws of Seller, and all
amendments thereto, heretofore delivered to Buyer are accurate and complete as
of the date hereof. Other than as listed on Schedule 4.1, Seller has no direct
or indirect stock or other equity or ownership interest (whether controlling or
not) in any corporation, association, partnership, joint venture or other entity
which engages in a business substantially similar to the Business.

4.2 Authorization. Seller has all requisite corporate power and authority, and
has taken all corporate action necessary, to own, lease and operate the Assets,
to conduct the Business as it is presently being conducted, to execute and
deliver this Agreement and each Ancillary Agreement to which it will be a party,
to consummate the transactions contemplated hereby and to perform its
obligations hereunder. This Agreement has been duly executed and delivered by
Seller and is a legal, valid and binding obligation of Seller enforceable
against it in accordance with its terms. Following their execution and delivery
by Seller and the other parties thereto each of the Ancillary Agreements and
other documents delivered by Seller at Closing will be a legal, valid and
binding obligation of Seller, enforceable against it in accordance with their
terms.

4.3 No Changes to the Assets. Other than as set forth on Schedule 4.3, since the
Interim Balance Sheet Date:

4.3.1 there has been no actual or threatened adverse change in the financial
condition or results of operation, the Business or the Assets or any event,
condition or state of facts, in either case that is, or would result in a
Material Adverse Change in the Assets or the Business or the prospects for the
Business, including without limitation the loss of any material customers;

4.3.2 there has not been any sale or other disposition, except in the ordinary
course of Seller's Business, of any of the assets of the Business, or any
Encumbrance placed on the Assets;

4.3.3 Seller has operated the Business in the ordinary course consistent with
Seller's past practice so as to preserve the Business intact, and to preserve
the Business and the goodwill of Seller's suppliers, customers, distributors and
others having business relations with it;

4.3.4 Seller has not changed its accounting methods or practices (including any
change in depreciation or amortization policies or rates) or revalued any of its
assets.

4.4 Assets. Seller has good and marketable fee simple title to the Assets and
upon the consummation of the transactions contemplated hereby will transfer to
Buyer good and marketable title to all of the Assets, free and clear of any
Encumbrances, except for any Encumbrance that Buyer, in its sole discretion,
specifically accepts in writing. The Assets constitute all assets necessary for
the conduct of the Business as presently conducted.

4.5 Permits and Consents. Seller has all Permits required to conduct the
Business, except where the failure to obtain such Permits would not have a
Material Adverse Effect on the Assets or the Business. All Permits of Seller
related to the Business are valid and in full force and effect and are listed on
Schedule 4.6. Except as disclosed on Schedule 4.6, no notice to, declaration,
filing or registration with, or authorization, or Consent or approval of, or
Permit from, any governmental or regulatory body or authority, or any other
person or entity, is required to be made or obtained by Seller in connection
with the execution, delivery or performance of this Agreement and the
consummation of the transactions contemplated hereby, except where the failure

<PAGE>

to comply with such requirement would not have a Material Adverse Effect on the
Assets or the consummation of the transactions contemplated hereby. Schedule 4.6
sets forth all Consents required for the assignment by Seller to Buyer of the
Assumed Contracts. All of the Assumed Contracts will be enforceable by Buyer
after the Closing to the same extent as if the transactions contemplated by this
Agreement had not been consummated.

4.6 No Conflict or Violation. After giving effect to Consents and lien releases
that have been obtained from third parties or will be so obtained prior to the
Closing Date, neither the execution and delivery of this Agreement by Seller,
nor the consummation of the transactions contemplated hereby, nor compliance by
Seller with any of the provisions hereof, will (a) violate or conflict with any
provision of the Certificate of Incorporation or Bylaws of Seller, (b) violate,
conflict with, or result in a breach of any provision of, or constitute a
default (or an event which, with notice or lapse of time or both, would
constitute a default) under, or result in the termination of, or accelerate the
performance required by, or result in a right of termination or acceleration
under, or result in the creation of any Encumbrance upon any of the Assets
under, any of the terms, conditions or provisions of any Contract, Permit,
agreement, or other instrument or obligation (i) to which Seller is a party or
(ii) by which the Assets are bound, (c) violate, except where such violation
would not, individually or in the aggregate, have a Material Adverse Effect on
the Assets or the Business, any statute, rule, regulation, ordinance, code,
order, judgment, ruling, writ, injunction, decree or award or (d) impose any
Encumbrance, restriction or charge on the Assets or the Business.

4.7 Financial Statements. Attached hereto as Schedule 4.8 are the Financial
Statements of Seller. The Financial Statements (a) are in accordance with the
underlying books and records of Seller, (b) have been prepared in accordance
with generally accepted accounting principles consistently applied throughout
the periods covered thereby (except as otherwise described in Schedule 4.8) and
(c) fairly and accurately present the assets, liabilities (including all
reserves) and financial position of Seller as of the respective dates thereof
and the results of operations and changes in cash flows for the periods then
ended (subject, in the case of the Interim Financial Statements, to normal
year-end adjustments). At the respective dates of the Financial Statements,
there were no liabilities of Seller, which, in accordance with generally
accepted accounting principles, should have been shown or reflected in the
Financial Statements or the notes thereto, which are not shown or reflected in
the Financial Statements or the notes thereto.

4.8 Books and Records. Seller has made and kept (and given Buyer access to)
Books and Records and accounts, which, in reasonable detail, accurately and
fairly reflect the activities of Seller in connection with the Business. A copy
of the minute book of Seller has been previously delivered to Buyer. The copies
of the stock book records of Seller previously delivered to Buyer are true,
correct and complete, and accurately reflect all transactions effected in
Seller's stock through and including the date hereof.

4.9 Litigation. Except as set forth on Schedule 4.10, there is no action, order,
writ, injunction, judgment or decree outstanding or any claim, suit, litigation,
proceeding, labor dispute, arbitral action, governmental audit or investigation
(collectively, "Actions") pending, or to the best knowledge of Seller,
threatened or anticipated (a) against, related to or affecting Seller, the
Business or the Assets or (b) seeking to delay, limit or enjoin the transactions
contemplated by this Agreement. Seller is not in default with respect to or
subject to any judgment, order, writ, injunction or decree of any court or
governmental agency, and there are no unsatisfied judgments against Seller, the
Business or the Assets.

4.10 Labor Matters. Seller is not a party to any labor agreement with respect to
its employees with any labor organization, union, group or association and there
are no employee unions (nor any other similar labor or employee organizations)
under local statutes, custom or practice. Seller has not experienced any attempt
by organized labor or its representatives to make Seller conform to demands of
organized labor relating to its employees or to enter into a binding agreement
with organized labor that would cover the employees of Seller.

4.11 Compliance with Law. Seller, the conduct of the Business and the operation
of the Facilities have not violated and are in compliance with all laws,
statutes, ordinances, regulations, rules and orders of any foreign, federal,
state or local government and any other governmental department or agency, and
any judgment, decision, decree or order of any court or governmental agency,
department or authority, including without limitation environmental laws,
relating to the Assets, Facilities or Business or operations of Seller, except
where the violation or failure to comply, individually or in the aggregate,
would not have a Material Adverse Effect on the Facilities, the Assets or the
Business. Seller and the conduct of the Business and the operation of the

<PAGE>

Facilities are in conformity with all energy, public utility, zoning, building
and health codes, regulations and ordinances, OSHA and environmental laws and
all other foreign, federal, state, and local governmental and regulatory
requirements, except where any nonconformity would not have a Material Adverse
Effect on the Facilities, the Assets or the Business. Seller has not received
any notice to the effect that, or otherwise been advised that, it is not in
compliance with any such statutes, regulations, rules, judgments, decrees,
orders, ordinances or other laws, and Seller has no reason to anticipate that
any existing circumstances are likely to result in violations of any of the
foregoing, which non-compliance or violation could, in any one case or in the
aggregate, have a Material Adverse Effect on the Facilities, the Assets or the
Business.

4.12 No Brokers. Neither Seller nor any of its respective officers, directors,
employees, shareholders or Affiliates has employed or made any agreement with
any broker, finder or similar agent or any person or firm which will result in
an obligation to pay any finder's fee, brokerage fees or commission or similar
payment in connection with the transactions contemplated hereby.

4.13 No Other Agreements to Sell the Assets. Neither Seller nor any of its
respective officers, directors, shareholders or Affiliates have any commitment
or legal obligation, absolute or contingent, to any other person or firm other
than the Buyer to sell, assign, transfer or effect a sale of any of the Assets
(other than inventory in the ordinary course of business), or to effect a
liquidation, dissolution or other reorganization of Seller.

4.14 Intellectual Property.

4.14.1 Intellectual Property. Schedule 4.15 contains a complete and correct list
and a brief description, of all Intellectual Property in which Seller has any
interest whatsoever and that is primarily related to, used in, held for use in
connection with, or necessary for the conduct of, or otherwise material to, the
Business (the "Intellectual Property Assets"). The Intellectual Property Assets
listed in Schedule 4.15 are all those used by Seller in connection with the
Business and are identified as "owned" and "licensed" Intellectual Property
Assets.

4.14.2 Royalties and Licenses. Except as set forth on Schedule 4.15, no person
has a right to receive a royalty or similar payment in respect of any
Intellectual Property Assets. Except as set forth on Schedule 4.15, Seller has
no licenses granted, sold or otherwise transferred by or to it or other
agreements to which it is a party, relating in whole or in part to any of the
Intellectual Property Assets.

4.14.3 Ownership and Protection of Intellectual Property. As applicable, Seller
owns or has the right to use pursuant to license, sublicense, agreement, or
permission all Intellectual Property Assets free from any Encumbrances, and as
to the owned Intellectual Property Assets, free from any requirement of any
past, present, or future royalty payments, license fees, charges or other
payments, or conditions or restrictions whatsoever. None of the owned
Intellectual Property Assets are involved in any pending or to the best
knowledge of Seller, threatened litigation, none of the licensed Intellectual
Property Assets are involved in any pending or, to the best knowledge of Seller,
threatened litigation involving Seller and, to the best of Seller's knowledge,
none of the licensed Intellectual Property Assets are involved in any pending or
threatened litigation involving parties other than Seller. Seller has not
received any notice of invalidity or infringement of any rights of others with
respect to such Intellectual Property Assets. To the best of Seller's knowledge
after reasonable investigation, the conduct of the Business does not infringe or
otherwise conflict with any rights of any other firm, corporation, association
or person in respect of any Intellectual Property. To the best knowledge of
Seller after reasonable investigation, none of the owned Intellectual Property
Assets are being infringed or otherwise used or available for use by any other
firm, corporation, association or person. Seller has taken all reasonable and
prudent steps to protect the owned Intellectual Property Assets from
infringement by any other firm, corporation, association or person. Seller's use
of the Intellectual Property Assets is not, to the best of Seller's knowledge
after reasonable investigation, infringing upon or otherwise violating the

<PAGE>

rights of any third party in or to such Intellectual Property Assets, nor, to
the best of Seller's knowledge after reasonable investigation, has such
infringement been alleged by any third party. All of the Intellectual Property
Assets are valid and enforceable rights of Seller, and the owned Intellectual
Property Assets, will be quit-claimed to Buyer and will not cease to be valid
and in full force and effect by reason of the execution, delivery and
performance of this Agreement or the consummation of the transactions
contemplated by this Agreement.

4.15 Tax Matters.

4.15.1 Filing of Tax Returns. Seller has timely filed with the appropriate
taxing authorities all returns (including without limitation information returns
and other material information) in respect of Taxes required to be filed through
the date hereof and will timely file any such returns required to be filed on or
prior to the Closing Date. The returns and other information filed are complete
and accurate in all material respects. Neither Seller, nor any group of which
Seller now or was a member, has requested any extension of time within which to
file returns (including without limitation information returns) in respect of
any taxes.

4.15.2 Payment of Taxes. All Taxes, in respect of periods beginning before the
Closing Date, have been timely paid, or will be timely paid, or an adequate
reserve has been established therefor, as set forth in the Financial Statements,
and Seller does not have any liability for Taxes in excess of the amounts so
paid or reserves so established. There are no liens for Taxes (other than as
could be asserted for current Taxes not yet due and payable) on the Assets.

4.15.3 Audits, Investigations or Claims. There are no pending or, to the best of
Seller's knowledge, threatened audits, investigations or claims for or relating
to any material additional liability in respect of Taxes, and there are no
matters under discussion with any governmental authorities with respect to Taxes
that in the reasonable judgment of Seller, or its counsel, is likely to result
in a material additional liability for Taxes. Seller has not been notified that
any taxing authority intends to audit a return for any period. No extension of a
statute of limitations relating to Taxes is in effect with respect to Seller.

4.15.4 No Withholding. The transaction contemplated herein is not subject to the
tax withholding provisions of Section 3406 of the Code, or of Subchapter A of
Chapter 3 of the Code or of any other provision of law.

4.16 Customers. Seller has previously provided to Buyer true and correct lists
of (a) the names and addresses of all domestic customers of the Business that
ordered products, goods, or services from Seller during the twelve (12) month
period ended as of the date of the Interim Balance Sheet, and (b) the amount for
which each such customer was invoiced during such period related to the
Business. Except as set forth in Schedule 4.17, Seller has received no notice
and Seller has no reason to believe that any customer of Seller (i) has ceased,
or will cease, to use the products, goods, or services of Seller which relate to
the Business, (ii) has substantially reduced, or will substantially reduce, the
use of products, goods, or services of Seller which relate to the Business or
(iii) has sought, or is seeking, to reduce the price it will pay for products,
goods or services of Seller, which relate to the Business, including in each
case after the consummation of the transactions contemplated hereby. To the best
of Seller's knowledge, no customer of Seller with respect to the Business has
otherwise threatened to take any action described in the preceding sentence as a
result of the consummation of the transactions contemplated by this Agreement.

4.17 Warranties. Except as set forth in Schedule 4.18, (a) there are no
warranties, express or implied, written or oral, with respect to the products of
the Business and (b) other than as have occurred in the ordinary course of
Seller's business, there are no pending or threatened claims with respect to any
such warranty, and (c) Seller has not, and to the best knowledge of Seller,
neither Buyer nor any of its affiliates will have, any liability, after the
Closing with respect to any such warranty, whether known or unknown, absolute,
accrued, contingent or otherwise and whether due or to become due, other than
customary returns in the ordinary course of the Business which are reserved
against in accordance with generally accepted accounting principles in the most
recent Financial Statements of Seller. Other than as disclosed in writing to
Buyer, Seller has received no material complaints from customers relating to the
Business.

4.18 Liabilities. Except as set forth on Schedule 4.19, Seller has no
liabilities or obligations with respect to the Business or the Assets to be
transferred (absolute, accrued, contingent or otherwise) except (i) liabilities

<PAGE>

which are reflected on the Interim Balance Sheet or which are not required under
generally accepted accounting principles to be reflected on the Interim Balance
Sheet, (ii) liabilities incurred in the ordinary course of the business and
consistent with past practice since the Interim Balance Sheet Date, and (iii)
liabilities arising under the Contracts previously furnished to Buyer.

4.19 Securities Law Matters.

4.19.1 Seller confirms that it is acquiring the ANI Shares for its own account
as principal, for investment purposes only, and not with a view to, or for,
resale or distribution thereof, and no other person has or will have a direct or
indirect beneficial interest in the ANI Shares.

4.19.2 Seller understands that the offering and sale of the ANI Shares is
intended to a be a transaction by an issuer not involving any public offering
exempt from registration under the Securities Act of 1933 (the "Securities Act")
by virtue of Section 4(2) of the Securities Act and the rules and regulations of
the Securities and Exchange Commission (the "Commission") thereunder;

4.19.3 Seller represents that it is an "accredited investor" as such term is
defined in Rule 501 under the Securities Act;

4.19.4 Seller understands and acknowledges that there are substantial risks of
loss of investment involved in an investment in the ANI Shares, and that the
investment in the ANI Shares is an illiquid investment subject to transfer
restrictions, and Seller represents and warrants that it has the financial
ability to bear the economic risk of such investment;

4.19.5 Seller has such knowledge and experience in financial and business
matters, including investments of the type represented by the ANI Shares, as to
be capable of evaluating the merits of investment therein;

4.19.6 Seller has been furnished with a copy of the most recent periodic reports
filed by Buyer with the Commission and any document requested by Seller, and
Seller has carefully read and understands such materials and has evaluated the
risks of an acquisition of the ANI Shares;

4.19.7 Seller has been given the opportunity to ask questions of, and receive
answers from, Representatives of Buyer in order for it to evaluate the merits
and risks of investment in the ANI Shares;

4.19.8 Seller has not been furnished with or relied upon any oral or written
representation, warranty or information in connection with the offering of the
ANI Shares except as set forth in this Agreement.

4.19.9 The instruments evidencing the ANI Shares shall bear a restrictive legend
in substantially the following form: "The securities represented by this
certificate have not been registered under the Securities Act of 1933, as
amended (the "Act"). These securities have been acquired for investment and not
with a view to distribution or resale, and may not be sold, offered for sale,
pledged or hypothecated in the absence of an effective registration statement
for such shares under the Act or an opinion of counsel satisfactory in form and
content to the issuer that such registration is not required under such Act."

4.20 Disclosure. Neither this Agreement nor any of the Schedules or Exhibits
hereto contains or shall contain when delivered at Closing any untrue statement
of a material fact or shall omit to state a material fact necessary to make the
statements contained herein or therein, in light of the circumstances in which
they were made, not misleading; and there is no fact with respect to the
Business which has not been disclosed to Buyer which Materially Adversely
Affects or could reasonably be anticipated to Materially Adversely Affect the
Assets being transferred, financial condition or results of operations,
customer, employee or supplier relations, business condition or prospects of
Seller.

<PAGE>

                                    ARTICLE V
                     REPRESENTATIONS AND WARRANTIES OF BUYER

Buyer hereby represents and warrants to Seller as follows, which representations
and warranties are, and as of the Closing Date shall be, true and correct:

5.1 Organization of Buyer. Buyer is a corporation duly organized, validly
existing and in good standing under the laws of the State of Delaware.

5.2 Authorization. Buyer has all requisite corporate power and authority, and
has taken all corporate action necessary, to execute and deliver this Agreement
and each Ancillary Agreement to which it will be a party, to consummate the
transactions contemplated hereby and to perform its obligations hereunder. This
Agreement has been duly executed and delivered by Buyer and is a legal, valid
and binding obligation of Buyer enforceable against it in accordance with its
terms. Following their execution and delivery by Buyer and the other parties
thereto each of the Ancillary Agreements and other documents delivered by Buyer
at Closing will be a legal, valid and binding obligation of Buyer, enforceable
against it in accordance with their terms.

5.3 No Conflict or Violation. Neither the execution, delivery or performance of
this Agreement or the Ancillary Agreements nor the consummation of the
transactions contemplated hereby or thereby, nor compliance by Buyer with any of
the provisions hereof or thereof, will (a) violate or conflict with any
provision of the Certificate of Incorporation or Bylaws of Buyer, or (b) violate
any statute, rule, regulation, ordinance, code, order, judgment, ruling, writ,
injunction, decree or award binding upon Buyer.

5.4 Consents and Approvals. No notice to, declaration, filing or registration
with, or authorization, Consent or approval of, or permit from, any governmental
or regulatory body or authority, or any other person or entity, is required to
be made or obtained by Buyer in connection with the execution, delivery and
performance of this Agreement or the Ancillary Agreements and the consummation
of the transactions contemplated hereby or thereby, except (a) as may be
required by Buyer to operate the Business after the Closing, or (b) as has been
obtained on or prior to the date hereof.

5.5 No Brokers. Neither Buyer nor any of its respective officers, directors,
employees, shareholders, or Affiliates has employed or made any agreement with
any broker, finder, or similar agent or any person or firm which will result in
an obligation to pay any finder's fee, brokerage fees, or commission or similar
payment in connection with the transactions contemplated hereby.

5.6 ANI Shares. The ANI Shares to be issued pursuant to this Agreement, when
issued and delivered in accordance with the terms of this Agreement, will be
duly authorized, validly issued, fully paid, and nonassessable and free of
preemptive rights.

5.7 SEC Information Furnished Concerning Buyer. For the period from January 1,
2003 to the date hereof, Buyer has, or will, file with the Commission those
filings and reports required pursuant to the Securities and Exchange Act of 1934
(the "SEC Documents"). The audited consolidated financial statements for the
year ended December 31, 2003, contained within the SEC Documents have been
prepared in accordance with generally accepted accounting principles
consistently applied (except as may be otherwise noted therein) and fairly
present the consolidated financial position of Buyer and its subsidiaries as of
such date and the consolidated results of operations of Buyer and its
subsidiaries for the year then ended. To Buyer's knowledge, as of their
respective dates, the SEC Documents, including, but not limited to, the
financial statements contained therein, did not contain any untrue statement of
a material fact or omit to state a material fact necessary in order to make the
statements made therein, in the light of the circumstances under which they were
made, not misleading.

                                   ARTICLE VI
                          COVENANTS OF SELLER AND BUYER

Buyer and Seller each covenant with the other as follows:

6.1 Further Assurances. Upon the terms and subject to the conditions contained
herein, each of the parties hereto agrees, both before and after the Closing,
(i) to use all reasonable efforts to take, or cause to be taken, all actions and
to do, or cause to be done, all things necessary, proper or advisable to

<PAGE>

consummate and make effective the transactions contemplated by this Agreement,
(ii) to execute any documents, instruments or conveyances of any kind which may
be reasonably necessary or advisable to carry out any of the transactions
contemplated hereunder, and (iii) to cooperate with each other in connection
with the foregoing, including using their respective best efforts (A) to obtain
all necessary waivers, Consents and approvals from other parties to the
Contracts to be assumed by Buyer; provided, however, that Buyer shall not be
required to make any payments, commence litigation or agree to modifications of
the terms thereof in order to obtain any such waivers, Consents or approvals,
(B) to obtain all necessary Permits as are required to be obtained under any
federal, state, local or foreign law or regulations, (C) to effect all necessary
registrations and filings, including without limitation submissions of
information requested by governmental authorities, and (D) to fulfill all
conditions to this Agreement.

                                   ARTICLE VII
                              CONDITIONS PRECEDENT

7.1 Conditions to Obligations of Buyer. The obligations of Buyer to consummate
the transactions contemplated hereby shall be subject to the fulfillment (or
waiver by Buyer, in its sole discretion) on or prior to the Closing Date of the
following additional conditions, which Seller agrees to use reasonable good
faith efforts to cause to be fulfilled:

7.1.1 Representations, Performance. All representations and warranties of Seller
contained in this Agreement shall be true and correct in all respects at and as
of the date hereof, and shall be repeated and shall be true and correct in all
respects on and as of the Closing Date with the same effect as though made on
and as of the Closing Date.

7.1.2 Performance of Covenants and Conditions. Seller shall have duly performed
and complied with all agreements and conditions required by this Agreement to be
performed or complied with by it prior to or on the Closing Date.

7.1.3 Consents. Seller shall have obtained and shall have delivered to Buyer
copies of (i) all governmental approvals required to be obtained by Seller in
connection with the execution and delivery of this Agreement and the
consummation of the transactions contemplated hereby and (ii) all Consents
(including, without limitation, all Consents set forth on Schedule 4.6),
necessary to be obtained in order to consummate the transactions contemplated by
this Agreement.

7.1.4 Closing Financial Statements. Buyer shall have received the Closing
Financial Statements.

7.1.5 No Material Adverse Effect. No event, occurrence, fact, condition, change,
development or effect shall have occurred, exist or come to exist since the date
of the Interim Balance Sheet that, individually or in the aggregate, has
constituted or resulted in, or could reasonably be expected to constitute or
result in, a Material Adverse Effect.

7.1.6 No Proceedings or Litigation. No Action by any governmental authority or
other person shall have been instituted or threatened which questions the
validity or legality of the transactions contemplated hereby and which could
reasonably be expected to damage Buyer materially if the transactions
contemplated hereby are consummated, including without limitation any Material
Adverse Effect on the right or ability of Buyer to own, operate, possess or
transfer the Assets after the Closing. There shall not be any statute, rule or
regulation that makes the purchase and sale of the Business or the Assets
contemplated hereby illegal or otherwise prohibited.

7.1.7 Conveyancing Documents; Release of Encumbrances. Seller shall have
executed and delivered each of the documents described in Article III hereof so
as to effect the transfer and assignment to Buyer of all right, title and
interest in and to the Assets and Seller shall have filed (where necessary) and
delivered to Buyer all documents necessary to release the Assets from all
Encumbrances, which documents shall be in a form reasonably satisfactory to
Buyer and its counsel.

<PAGE>

7.1.8 Permits. Buyer shall have obtained or been granted the right to use all
Permits necessary to its operation of the Business

7.1.9 Due Diligence Review. Buyer and its Representatives shall have conducted a
due diligence review of Seller's Books and Records, Financial Statements, and
other records and accounts of the Business, and in the sole discretion of Buyer,
Buyer shall be satisfied with such review. Such review shall have no effect
whatsoever on the liability of Seller to Buyer under this Agreement or otherwise
for breach of any representations, warranties, or covenants of Seller or
hereunder. Seller shall have also delivered to Buyer all Schedules to be
supplied hereunder at least two (2) business days prior to Closing, which shall
be satisfactory to Buyer.

7.2 Conditions to Obligations of Seller. The obligations of Seller to consummate
the transactions contemplated hereby shall be subject to the fulfillment (or
waiver by Seller, in its sole discretion) on or prior to the Closing Date of the
following additional conditions, which Buyer agrees to use reasonable good faith
efforts to cause to be fulfilled.

7.2.1 Representations, Performance. All representations and warranties of Buyer
contained in this Agreement shall be true and correct in all respects at and as
of the date hereof, and shall be repeated and shall be true and correct in all
respects on and as of the Closing Date with the same effect as though made on
and as of the Closing Date.

7.2.2 Performance of Covenants and Conditions. Buyer shall have duly performed
and complied with all agreements and conditions required by this Agreement to be
performed or complied with by it prior to or on the Closing Date.

7.2.3 No Proceedings or Litigation. No Action by any govern1mental authority or
other person shall have been instituted or threatened which questions the
validity or legality of the transactions contemplated hereby. There shall not be
any statute, rule or regulation that makes the purchase and sale of the Business
or the Assets contemplated hereby illegal or otherwise prohibited.

7.2.4 Conveyances. Buyer shall have delivered, or cause to be delivered, to
Seller items or documents identified in Article III hereof.

                                  ARTICLE VIII
                 CONDUCT OF SELLER AND BUYER PENDING THE CLOSING

8.1 Seller Covenants. Seller hereby covenants and agrees that from the date
hereof to the Closing Date:

8.1.1 Conduct of Business Pending the Closing. Except as specifically
contemplated in this Agreement or as disclosed in any Schedule hereto, the
Business of Seller shall be conducted only in, and Seller shall take no action
except in, the ordinary course, on an arm's length basis, and in accordance with
all applicable laws, rules, and regulations and past custom and practice,
including, without limitation, making any loans or any cash payments, or
transferring any other assets or properties of Seller to any employee, officer,
shareholder, or director of Seller; and Seller will not, directly or indirectly,
do or permit to occur any of the following:

8.1.1.1 Cancel or terminate or permit to be canceled or terminated its current
insurance (or reinsurance) policies or permit any of the coverage thereunder to
lapse, unless simultaneous with such termination, cancellation, or lapse,
replacement policies providing coverage equal to or greater than the coverage
under the canceled, terminated, or lapsed policies are in full force and effect;

8.1.1.2 Default under any material contract, agreement, commitment, or
undertaking;

8.1.1.3 Knowingly violate or fail to comply with any laws applicable to it or
the Business;

8.1.1.4 Commit any act or permit the occurrence of any event or the existence of
any condition of the type described in Section 4.3 hereof;

<PAGE>

8.1.1.5 Except in the ordinary course of business consistent with historical
practices, enter into or modify any employment, severance, or similar agreements
or arrangements with, or grant any bonuses, salary increases, or severance or
termination pay to, any officers, directors, employees, or consultants, or adopt
or amend any bonus, profit sharing, compensation, stock option, pension,
retirement, deferred compensation, employment, or other benefit plan, trust,
fund, or group arrangement for the benefit or welfare of any officers,
directors, or employees;

8.1.1.6 Directly or indirectly enter into or modify any contract, agreement, or
understanding or enter into any transaction not in the ordinary course of
business;

8.1.1.7 Cancel, without full payment, any note, loan, or other obligation owing
to Seller relating to the Business except in the ordinary course of business;

8.1.1.8 Acquire (by merger, exchange, consolidation, acquisition of stock or
assets, or otherwise) any corporation, partnership, joint venture, or other
business organization or division or material assets thereof;

8.1.1.9 Issue any additional shares of capital stock or permit the transfer of
any outstanding shares of Seller's capital stock or declare any dividends or
distributions;

8.1.1.10 Issue or create any warrants, obligations, subscriptions, options,
convertible securities, or other commitments under which any additional shares
of its capital stock might be directly or indirectly authorized, issued, or
transferred from treasury, or incur any indebtedness for borrowed money or issue
any debt securities except the borrowing of working capital in the ordinary
course of business and consistent with past practice;

8.1.1.11 Pay any obligation or liability, fixed or contingent, except in the
ordinary course of business;

8.1.1.12 Waive or compromise any right or claim, other than as required to
resolve any pending or threatened litigation disclosed in the Schedules attached
hereto;

8.1.1.13 Agree to do any of the actions described in the preceding clauses
8.1.1.1 through 8.1.1.12

8.1.2 Business Relationships. Seller will exercise its best efforts to preserve
intact its business organization and goodwill, keep available the services of
its officers and employees as a group, and maintain satisfactory relationships
with suppliers, distributors, customers, and others having business
relationships with it.

8.1.3 Notification of Certain Matters. Seller shall (i) confer on a regular
basis with Representatives of Buyer and report operational matters and the
general status of ongoing operations, (ii) notify Buyer of any Material Adverse
Change in the normal course of its business and of any governmental or third
party complaints, investigations, or hearings (or communications indicating that
the same may be contemplated); and (iii) promptly notify Buyer if Seller shall
discover that any representation or warranty made by it in this Agreement was
when made, or has subsequently become, untrue.

8.1.4 Transfer of Permits. Seller will use its best efforts to assist Buyer to
effect the assignment or other transfer of Permits from Seller to Buyer as of or
as soon as practicable after the Closing Date.

8.1.5 Closing. Seller shall use its best efforts to cause the conditions
specified in Article VII hereof to be satisfied at or prior to the Closing Date.

8.2 No Negotiations. Seller shall not, directly or indirectly, through any
officer, director, agent, or otherwise, solicit, initiate, or encourage
submission of any proposal or offer from any person or entity (including any of
its or their officers or employees) relating to any liquidation, dissolution,
recapitalization, merger, consolidation, or acquisition or purchase of all or a

<PAGE>

material portion of the assets of, or any equity interest in, Seller or other
similar transaction or business combination involving Seller, or participate in
any negotiations regarding, or furnish to any other person any information with
respect to, or otherwise cooperate in any way with, or assist, participate in,
facilitate, or encourage, any effort or attempt by any other person or entity to
do or seek any of the foregoing. Seller shall promptly notify Buyer if any such
proposal or offer, or any inquiry from or contact with any person with respect
thereto, is made and shall promptly provide Buyer with such information
regarding such proposal, offer, inquiry, or contact as Buyer may request.

8.3 Public Announcements. The parties hereto shall not issue any press release
or public announcement, including announcements by any party for general
reception by or dissemination to employees, agents, or customers, with respect
to this Agreement and the other transactions contemplated by this Agreement
without the prior written consent of the other parties hereto (which consent
shall not be withheld unreasonably); provided, however, that Buyer may make any
disclosure of announcement of information, it is obligated to make pursuant to
applicable law or regulation, including any applicable law or regulation of the
Nasdaq Over the Counter Bulletin Board or any national securities exchange, as
applicable.

8.4 Confidentiality. Each party hereto, and its officers, directors, agents, and
affiliates, will hold in strict confidence, and will not divulge, communicate,
use to the detriment of any other party hereto or for the benefit of any other
person or persons, or misuse in any way, any financial information or other data
obtained in connection with this Agreement, including, without limitation, any
confidential information or trade secrets of such other party, personnel
information, secret processes, know how, customer lists, formulas, or other
technical data; and if the transactions contemplated by this Agreement are not
consummated, each party hereto, and its officers, directors, agents and
Affiliates, will return to each other party all such data an information,
including without limitation, work sheets, test reports, manuals, lists,
memoranda, and other documents prepared by or made available in connection with
this transaction (and all copies of same). The parties hereto may disclose such
information to their respective attorneys, accountants and other agents so long
as they agree to keep such information confidential. Notwithstanding the
foregoing, confidential information shall not include any information which a
party can demonstrate: (i) was already in such party's possession prior to
negotiations related to this transaction; (ii) is or becomes publicly and openly
known and in the public domain through no fault of such party; or (iii) is
received by such party in a non-confidential manner from a third party having
the right to disclose such information.

                                   ARTICLE IX
                  ACTIONS BY SELLER AND BUYER AFTER THE CLOSING

9.1 Books and Records; Payment of Liabilities.

9.1.1 Books and Records. Each party agrees that it will cooperate with and make
available to the other party, during normal business hours, all Books and
Records, information and employees (without substantial disruption of
employment) retained and remaining in existence after the Closing which are
necessary or useful in connection with any tax inquiry, audit, investigation or
dispute, any litigation or investigation or any other matter related to the
Business or the Assets requiring any such Books and Records, information or
employees for any reasonable business purpose.

9.1.2 Cooperation and Records Retention. Seller and Buyer shall (i) each provide
the other with such assistance as may reasonably be requested by any of them in
connection with the preparation of any return, audit, or other examination by
any taxing authority or judicial or administrative proceedings relating to
liability for Taxes, (ii) each retain and provide the other with any records or
other information that may be relevant to such return, audit or examination,
proceeding or determination, and (iii) each provide the other with any final
determination of any such audit or examination, proceeding, or determination
that affects any amount required to be shown on any tax return of the other for
any period. Without limiting the generality of the foregoing, Buyer and Seller
shall each retain, until the applicable statutes of limitations (including any
extensions) have expired, copies of all tax returns, supporting work schedules,

<PAGE>

and other records or information, in a timely manner, as and that may be
relevant to such returns for all tax periods or portions thereof ending on or
before the Closing Date and shall not destroy or otherwise dispose of any such
records without first providing the other party with a reasonable opportunity to
review and copy the same.

9.2 Survival of Representations, Etc. All statements contained in any
certificate, schedule, exhibit, instrument or conveyance delivered by or on
behalf of the parties pursuant to this Agreement or in connection with the
transactions contemplated hereby shall be deemed to be representations and
warranties by the parties hereunder. The representations and warranties of
Seller and Buyer contained herein and all claims and causes of action with
respect thereto (other than the provisions of Sections 4.4, 4.16 and this
Section 9.3, and all claims and causes of action with respect thereto) shall
survive for a period of three (3) years from the Closing Date, except that the
representations and warranties in Section 4.4 shall survive forever. The
representations and warranties in Section 4.16 shall survive until the
expiration of the applicable statute of limitations (with extensions) with
respect to the matters addressed in such section. The termination of the
representations and warranties provided herein shall not affect the rights of a
party in respect of any Claim made by such party in a writing received by the
other party prior to the expiration of the applicable survival period provided
herein.

9.3 Indemnifications.

9.3.1 By Seller. Regardless of Seller's knowledge of the existence of an
Indemnifiable Event (as defined below), Seller shall indemnify, defend, save and
hold harmless Buyer, its Affiliates and subsidiaries, and their respective
Representatives, from and against any and all Damages incurred in connection
with, arising out of, resulting from or incident to (i) any breach of any
representation or warranty, or the inaccuracy of any representation or warranty,
made by Seller in or pursuant to this Agreement (it being understood and agreed
that, notwithstanding anything to the contrary contained in this Agreement, to
determine if there had been an inaccuracy or breach of a representation or
warranty of the Seller and the losses arising from such inaccuracy or breach,
such representation or warranty shall be read as if it were not qualified by
materiality, including, without limitation, qualifications indicating accuracy
in all material respects, or accuracy except to the extent the inaccuracy will
not have a Material Adverse Effect); (ii) any breach of any covenant or
agreement made by Seller in or pursuant to this Agreement; (iii) any Excluded
Liability; (iv) any liability imposed upon Buyer by reason of Buyer's status as
transferee of the Business or the Assets except to the extent such liability
arises out of or results from Buyer's operation of the Business after the
Closing Date; (v) any liability arising under any environmental law on account
of the conduct of Seller or prior owners or users of the Facilities or other
persons, or on account of the operation of the Business or the Facilities, or
related to any environmental condition (collectively, the "Indemnifiable
Events").

9.3.2 By Buyer. Buyer shall indemnify, defend, save and hold harmless Seller,
its Affiliates and its Representatives from and against any and all Damages
incurred in connection with, arising out of, resulting from or incident to (i)
any breach of any representation or warranty, or the inaccuracy of any
representation or warranty, made by Buyer in or pursuant to this Agreement (it
being understood and agreed that, notwithstanding anything to the contrary
contained in this Agreement, to determine if there had been an inaccuracy or
breach of a representation or warranty of the Buyer and the losses arising from
such inaccuracy or breach, such representation or warranty shall be read as if
it were not qualified by materiality, including, without limitation,
qualifications indicating accuracy in all material respects, or accuracy except
to the extent the inaccuracy will not have a Material Adverse Effect); (ii) any
breach of any covenant or agreement made by Buyer in or pursuant to this
Agreement; or (iii) any Assumed Liability insofar as such Assumed Liability
arises from and after the Closing.

9.3.3 Cooperation. The indemnified party shall cooperate in all reasonable
respects with the indemnifying party and such party's attorneys in the
investigation, trial and defense of such lawsuit or action and any appeal
arising therefrom; provided, however, that the indemnified party may, at its own
cost, participate in the investigation, trial and defense of such lawsuit or
action and any appeal arising therefrom. The parties shall cooperate with each
other in any notifications to insurers.

9.3.4 Defense of Claims. If a claim for Damages (a "Claim") is to be made by a
party entitled to indemnification hereunder against the indemnifying party, the
party claiming such indemnification shall, subject to Section 9.3, give written
notice (a "Claim Notice") to the indemnifying party as soon as practicable after

<PAGE>

the party entitled to indemnification becomes aware of any fact, condition or
event which may give rise to Damages for which indemnification may be sought
under this Section 9.4. If any lawsuit or enforcement action is filed against
any party entitled to the benefit of indemnity hereunder, written notice thereof
shall be given to the indemnifying party as promptly as practicable (and in any
event within fifteen (15) calendar days after the service of the citation or
summons). The failure of any indemnified party to give timely notice hereunder
shall not affect rights to indemnification hereunder, except to the extent that
the indemnifying party demonstrates actual damage caused by such failure. After
such notice, if the indemnifying party shall acknowledge in writing to the
indemnified party that the indemnifying party shall be obligated under the terms
of its indemnity hereunder in connection with such lawsuit or action, then the
indemnifying party shall be entitled, if it so elects, (i) to take control of
the defense and investigation of such lawsuit or action, (ii) to employ and
engage attorneys of its own choice (which shall be reasonably acceptable to the
indemnified party) to handle and defend the same, at the indemnifying party's
cost, risk and expense unless the named parties to such action or proceeding
include both the indemnifying party and the indemnified party and the
indemnified party has been advised in writing by counsel that there may be one
or more legal defenses available to such indemnified party that are different
from or additional to those available to the indemnifying party, and (iii) to
compromise or settle such claim, which compromise or settlement shall be made
only with the written consent of the indemnified party, such consent not to be
unreasonably withheld; provided, however, if the remediation or resolution of
any such Claim is reasonably expected to have a Material Adverse Effect on the
indemnified party's business operations, then, notwithstanding the foregoing,
the indemnified party shall be entitled to control such remediation or
resolution, including without limitation to take control of the defense and
investigation of such lawsuit or action, to employ and engage attorneys of its
own choice to handle and defend the same, at the indemnifying party's cost, risk
and expense, and to compromise or settle such Claim. If the indemnifying party
fails to assume the defense of such claim within fifteen (15) calendar days
after receipt of the Claim Notice, the indemnified party against which such
claim has been asserted will (upon delivering notice to such effect to the
indemnifying party) have the right to undertake, at the indemnifying party's
cost and expense, the defense, compromise or settlement of such claim on behalf
of and for the account and risk of the indemnifying party. In the event the
indemnified party assumes the defense of the claim, the indemnified party will
keep the indemnifying party reasonably informed of the progress of any such
defense, compromise or settlement. The indemnifying party shall be liable for
any settlement of any action effected pursuant to and in accordance with this
Section 9.4 and for any final judgment (subject to any right of appeal), and the
indemnifying party agrees to indemnify and hold harmless an indemnified party
from and against any Damages by reason of such settlement or judgment.

9.3.5 Liability and Remedies, etc. Nothing herein shall relieve either party of
any liability to make any payment expressly required to be made by such party
pursuant to this Agreement. The term "Damages" as used in this Section 9.4 is
not limited to matters asserted by third parties against Seller or Buyer, but
includes Damages incurred or sustained by Seller or Buyer in the absence of
third party claims. Payments by Buyer of amounts for which Buyer is indemnified
hereunder, and payments by Seller of amounts for which Seller is indemnified,
shall not be a condition precedent to recovery. Seller's obligation to indemnify
Buyer, and Buyer's obligation to indemnify Seller, shall not limit any other
rights, including without limitation rights of contribution which either party
may have under statute or common law.

9.4 Taxes. Subject to Section 2.6, Seller shall pay, or cause to be paid, when
due all Taxes for which Seller is or may be liable or that are or may become
payable with respect to all taxable periods ending on or prior to the Closing
Date. Buyer shall pay, or cause to be paid, when due all Taxes for which Buyer
is or may be liable or that are or may become payable with respect to all
taxable periods ending after the Closing Date.

9.5 Further Action. After the Closing, Seller shall take all actions reasonably
necessary to effect the conveyance of the Assets to Buyer free and clear of all
Encumbrances.

<PAGE>

                                    ARTICLE X
                                   TERMINATION

10.1 Termination. This Agreement will terminate upon the occurrence of any of
the following events:

10.1.1 Upon the written agreement of Seller and Buyer; or

10.1.2 At such time as Seller or Buyer provides written notice to the other
party if the transactions contemplated hereby shall not have been consummated
pursuant hereto by 5:00 p.m. New York time on November 21, 2003, unless such
date shall be extended by the mutual written consent of Seller and Buyer; or

10.1.3 At such time as Buyer provides written notice to Seller if (i) the
representations and warranties of Seller shall not have been true and correct in
all material respects as of the date when made, (ii) if any of the conditions
set forth in Section 7.1 shall not have been, or if it becomes apparent that any
of such conditions will not be, fulfilled by 5:00 p.m. New York time on November
21, 2003, or (iii) if Seller violates the provisions of Section 8.2 herein; or

10.1.4 At such time as Seller provides written notice to Buyer if (i) the
representations and warranties of Buyer shall not have been true and correct in
all material respects as of the date when made or (ii) if any of the conditions
set forth in Section 7.2 shall not have been, or if it becomes apparent that any
of such conditions will not be fulfilled by 5:00 p.m. New York time on November
21, 2003.

10.2 Effect of Termination. In the event of the termination of this Agreement
pursuant to the provisions of Section 10.1, this Agreement shall become void and
have no effect, without any liability to any person or entity in respect hereof
or of the transactions contemplated hereby on the part of any party hereto, or
any of its directors, officers, employees, agents, consultants, representatives,
advisers, stockholders or affiliates.

                                   ARTICLE XI
                                  MISCELLANEOUS

11.1 Assignment. Neither this Agreement nor any of the rights or obligations
hereunder may be assigned by any party without the prior written consent of the
other parties; except that Buyer may, without such consent, assign all such
rights to any lender as collateral security and assign all such rights and
obligations to a wholly-owned subsidiary (or a partnership or other entity
controlled by Buyer) or subsidiaries of Buyer or to a successor in interest to
Buyer which shall assume all obligations and liabilities of Buyer under this
Agreement. Subject to the foregoing, this Agreement shall be binding upon and
inure to the benefit of the parties hereto and their respective successors and
permitted assigns, and no other person shall have any right, benefit or
obligation under this Agreement as a third party beneficiary or otherwise.

11.2 Notices. All notices, requests, demands and other communications which are
required or may be given under this Agreement shall be in writing and shall be
deemed to have been duly given when received if personally delivered; when
transmitted if transmitted by telecopy, electronic or digital transmission
method; the day after it is sent, if sent for next day delivery to a domestic
address by recognized overnight delivery service (e.g., Federal Express); and
upon receipt, if sent by certified or registered mail, return receipt requested.
In each case notice shall be sent to:

If to Buyer, addressed to:

If to Seller, addressed to:
                                     Mr. David Lieberman, President
Advanced Plant Pharmaceuticals, Inc. 43 West 33rd Street
4th Floor
New York, New York 10001

or to such other place and with such other copies as either party may designate

<PAGE>

as to itself by written notice to the others.

11.3 Choice of Law. This Agreement shall be construed, interpreted and the
rights of the parties determined in accordance with the laws of the State of New
York (without reference to the choice of law provisions thereof), except with
respect to matters of law concerning the internal corporate affairs of any
corporate entity which is a party to or the subject of this Agreement, and as to
those matters the law of the jurisdiction under which the respective entity
derives its powers shall govern.

11.4 Entire Agreement; Amendments and Waivers. This Agreement, together with all
exhibits and schedules hereto, constitutes the entire agreement among the
parties pertaining to the subject matter hereof and supersedes all prior
agreements, understandings, negotiations and discussions, whether oral or
written, of the parties. This Agreement may not be amended except by an
instrument in writing signed on behalf of each of the parties hereto. No
amendment, supplement, modification or waiver of this Agreement shall be binding
unless executed in writing by the party to be bound thereby. No waiver of any of
the provisions of this Agreement shall be deemed or shall constitute a waiver of
any other provision hereof (whether or not similar), nor shall such waiver
constitute a continuing waiver unless otherwise expressly provided.

11.5 Multiple Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

11.6 Expenses. Except as otherwise specified in this Agreement, each party
hereto shall pay its own legal, accounting, out-of-pocket and other expenses
incident to this Agreement and to any action taken by such party in preparation
for carrying this Agreement into effect.

11.7 Invalidity. In the event that any one or more of the provisions contained
in this Agreement or in any other instrument referred to herein, shall, for any
reason, be held to be invalid, illegal or unenforceable in any respect, then to
the maximum extent permitted by law, such invalidity, illegality or
unenforceability shall not affect any other provision of this Agreement or any
other such instrument.

11.8 Titles. The titles, captions or headings of the Articles, Sections and
subsections herein are inserted for convenience of reference only and are not
intended to be a part of or to affect the meaning or interpretation of this
Agreement.

11.9 Cumulative Remedies. All rights and remedies of either party hereto are
cumulative of each other and of every other right or remedy such party may
otherwise have at law or in equity, and the exercise of one or more rights or
remedies shall not prejudice or impair the concurrent or subsequent exercise of
other rights or remedies.

IN WITNESS WHEREOF, the parties hereto have executed or caused this Agreement to
be duly executed on their respective behalf, by their respective officers
thereunto duly authorized, all as of the day and year first above written.

AMAZING NUTRITIONALS, INC.,

By:
Name:
Its: President

ADVANCED PLANT PHARMACEUTICALS, INC.,

By:
   ------------------------------------
Name:    David Lieberman
Its:     President

<PAGE>

Schedule 1.4
Assets Purchased

All rights, title patents, trademarks, processes and related items of LHM123.

DESCRIPTION OF ASSET PURCHASED:

LHM 123 is a natural composition for the treatment of senile dementias,
particularly Alzheimer's disease. The composition which is composed of five
natural ingredients can be therapeutically delivered by any appropriate
pharmaceutical method, preferably oral delivery in pill, or most preferably,
capsule form.

Alzheimer's disease is a progressive neurodegenerative disease characterized by
progressive memory loss, poor judgment, language deterioration, and impaired
visuospatial skills. Alzheimer's disease usually begins after the age of 65, but
may occur as early as (early onset type) 40 years old. It usually begins with
minor impairment in short-term memory with such experiences as frequently losing
keys, and eventually progresses to include severe short-term and long-term
memory loss, as well as affecting most other areas of an individual's cognitive
functioning. Alzheimer's disease eventually destroys cognition, personality and
ability to function. In the earliest stages it may be difficult to differentiate
from normal aging, but as it progresses it totally destroys an individual's
ability to function.

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