Document:

RP FINANCIAL, LC
--------------------------------------------
Financial Services Industry Consultants

                                                  August 7, 2001

Mr. Kenneth L. Bertrand
President and Chief Executive Officer
Allied Pilots Association Federal Credit Union
387 Shuman Boulevard, Suite 120 W
Naperville, Illinois  60563

Dear Mr. Bertrand:

         This letter sets forth the agreement between Allied First Bank, sb,
Naperville, Illinois ("Allied First" or the "Bank"), and RP Financial, LC. ("RP
Financial") for the independent appraisal services pertaining to the proposed
mutual-to-stock conversion of Allied First. It is our understanding that Allied
First will become the successor organization to Allied Pilots Association
Federal Credit Union upon its conversion to a mutual savings bank charter as of
September 1, 2001.

DESCRIPTION OF CONVERSION APPRAISAL SERVICES

         Prior to preparing the valuation report, RP Financial will conduct a
financial due diligence, including on-site interviews of senior management and
reviews of financial and other documents and records, to gain insight into the
Bank's operations, financial condition, profitability, market area, risks and
various internal and external factors which impact the pro forma value of the
Bank. RP Financial will prepare a written detailed valuation report of Allied
First that will be fully consistent with applicable regulatory guidelines and
standard pro forma valuation practices. The appraisal report will include an
in-depth analysis of the Bank's financial condition and operating results, as
well as an assessment of the Bank's interest rate risk, credit risk and
liquidity risk. The appraisal report will describe the Bank's business
strategies, market area, prospects for the future and the intended use of
proceeds both in the short term and over the longer term. A peer group analysis
relative to publicly-traded savings institutions will be conducted for the
purpose of determining appropriate valuation adjustments relative to the group.
We will review pertinent sections of the applications and offering documents to
obtain necessary data and information for the appraisal, including the impact of
key deal elements on the appraised value, such as dividend policy, use of
proceeds and reinvestment rate, tax rate, conversion expenses and
characteristics of stock plans. The appraisal report will conclude with a
midpoint pro forma value which will establish the range of value. The appraisal
report may be periodically updated throughout the conversion process and there
will be at least one updated valuation prepared at the time of the closing of
the stock offering.

         RP Financial agrees to deliver the valuation appraisal and subsequent
updates, in writing, to Allied First at the above address in conjunction with
the filing of the regulatory application. Subsequent updates will be filed
promptly as certain events occur which would warrant the

<PAGE>

KENNETH L. BERTRAND
AUGUST 7, 2001
PAGE 1

         preparation and filing of such valuation updates. Further, RP Financial
agrees to perform such other services as are necessary or required in connection
with the regulatory review of the appraisal and respond to the regulatory
comments, if any, regarding the valuation appraisal and subsequent updates.

FEE STRUCTURE AND PAYMENT SCHEDULE

         Allied Pilots agrees to pay RP Financial a fixed fee of $25,000 for
these appraisal services, plus reimbursable expenses. Payment of these fees
shall be made according to the following schedule:

          o    $5,000 upon execution of the letter of agreement engaging RP
               Financial's appraisal services;

          o    $17,500 upon delivery of the completed original appraisal report;
               and

          o    $2,500 upon completion of the stock offering to cover all
               subsequent valuation updates that may be required, provided that
               the transaction is not delayed for reasons described below.

         Allied First will reimburse RP Financial for out-of-pocket expenses
incurred in preparation of the valuation. Such out-of-pocket expenses will
likely include travel, printing, telephone, facsimile, shipping, computer and
data services.

         In the event Allied First shall, for any reason, discontinue the
proposed conversion prior to delivery of the completed documents set forth above
and payment of the respective progress payment fees, Allied First agrees to
compensate RP Financial according to RP Financial's standard billing rates for
consulting services based on accumulated and verifiable time expenses, not to
exceed the respective fee caps noted above, after giving full credit to the
initial retainer fee. RP Financial's standard billing rates range from $75 per
hour for research associates to $250 per hour for managing directors.

         If during the course of the proposed transaction, unforeseen events
occur so as to materially change the nature or the work content of the services
described in this contract, the terms of said contract shall be subject to
renegotiation by Allied First and RP Financial. Such unforeseen events shall
include, but not be limited to, major changes in the application regulations
governing the transaction or appraisal guidelines, major changes in management
or procedures, operating policies or philosophies, and excessive delays or
suspension of processing of the regulatory applications or the stock offering
materials such that completion of the transaction requires the preparation of a
new appraisal by RP Financial .

<PAGE>

KENNETH L. BERTRAND
AUGUST 7, 2001
PAGE 1

REPRESENTATIONS AND WARRANTIES

         Allied First and RP Financial agree to the following:

             1. Allied First agrees to make available or to supply to RP
Financial such information with respect to its business and financial condition
as RP Financial may reasonably request in order to provide the aforesaid
valuation. Such information heretofore or hereafter supplied or made available
to RP Financial shall include: annual financial statements, periodic regulatory
filings and material agreements, debt instruments, off balance sheet assets or
liabilities, commitments and contingencies, unrealized gains or losses and
corporate books and records. All information provided by Allied First to RP
Financial shall remain strictly confidential (unless such information is
otherwise made available to the public), and if the conversion are not
consummated or the services of RP Financial are terminated hereunder, RP
Financial shall upon request promptly return to Allied First the original and
any copies of such information.

             2. Allied First hereby represents and warrants to RP Financial that
any information provided to RP Financial does not and will not, to the best of
Allied First's knowledge, at the times it is provided to RP Financial, contain
any untrue statement of a material fact or fail to state a material fact
necessary to make the statements therein not false or misleading in light of the
circumstances under which they were made.

             3. (a) Allied First agrees that it will indemnify and hold harmless
RP Financial, any affiliates of RP Financial, the respective directors,
officers, agents and employees of RP Financial or their successors and assigns
who act for or on behalf of RP Financial in connection with the services called
for under this agreement (hereinafter referred to as "RP Financial"), from and
against any and all losses, claims, damages and liabilities (including, but not
limited to, all losses and expenses in connection with claims under the federal
securities laws) attributable to (i) any untrue statement or alleged untrue
statement of a material fact contained in the financial statements or other
information furnished or otherwise provided by Allied First to RP Financial,
either orally or in writing; (ii) the omission or alleged omission of a material
fact from the financial statements or other information furnished or otherwise
made available by Allied First to RP Financial; or (iii) any action or omission
to act by Allied First, or Allied First's respective officers, Directors,
employees or agents which action or omission is willful or negligent. Allied
First will be under no obligation to indemnify RP Financial hereunder if a court
determines that RP Financial was negligent or acted in bad faith with respect to
any actions or omissions of RP Financial related to a matter for which
indemnification is sought hereunder. Any time devoted by employees of RP
Financial to situations for which indemnification is provided hereunder, shall
be an indemnifiable cost payable by Allied First at the normal hourly
professional rate chargeable by such employee.

                (b) RP Financial shall give written notice to Allied First
of such claim or facts within thirty days of the assertion of any claim or
discovery of material facts upon which RP Financial intends to base a claim for
indemnification hereunder. In the event Allied First elects, within ten business
days of the receipt of the original notice thereof, to contest such claim by
written

<PAGE>

notice to RP Financial, RP Financial will be entitled to be paid any amounts
payable by Allied First hereunder within five days after the final determination
of such contest either by written acknowledgement of Allied First or a final
judgment (including all appeals therefrom) of a court of competent jurisdiction.
If Allied First does not so elect, RP Financial shall be paid promptly and in
any event within thirty days after receipt by Allied First of the notice of the
claim.

                (c) Allied First shall pay for or reimburse the reasonable
expenses, including attorneys' fees, incurred by RP Financial in advance of the
final disposition of any proceeding within thirty days of the receipt of such
request if RP Financial furnishes Allied First: (1) a written statement of RP
Financial's good faith belief that it is entitled to indemnification hereunder;
and (2) a written undertaking to repay the advance if it ultimately is
determined in a final adjudication of such proceeding that it or he is not
entitled to such indemnification. Allied First may assume the defense of any
claim (as to which notice is given in accordance with 3(b)) with counsel
reasonably satisfactory to RP Financial, and after notice from Allied First to
RP Financial of its election to assume the defense thereof, Allied First will
not be liable to RP Financial for any legal or other expenses subsequently
incurred by RP Financial (other than reasonable costs of investigation and
assistance in discovery and document production matters). Notwithstanding the
foregoing, RP Financial shall have the right to employ their own counsel in any
action or proceeding if RP Financial shall have concluded that a conflict of
interest exists between Allied First and RP Financial which would materially
impact the effective representation of RP Financial. In the event that RP
Financial concludes that a conflict of interest exists, RP Financial shall have
the right to select counsel reasonably satisfactory to Allied First which will
represent RP Financial in any such action or proceeding and Allied First shall
reimburse RP Financial for the reasonable legal fees and expenses of such
counsel and other expenses reasonably incurred by RP Financial. In no event
shall Allied First be liable for the fees and expenses of more than one counsel,
separate from its own counsel, for all indemnified parties in connection with
any one action or separate but similar or related actions in the same
jurisdiction arising out of the same allegations or circumstances. Allied First
will not be liable under the foregoing indemnification provision in respect of
any compromise or settlement of any action or proceeding made without its
consent, which consent shall not be unreasonably withheld.

                (d) In the event Allied First does not pay any indemnified
loss or make advance reimbursements of expenses in accordance with the terms of
this agreement, RP Financial shall have all remedies available at law or in
equity to enforce such obligation.

         It is understood that, in connection with RP Financial's
above-mentioned engagement, RP Financial may also be engaged to act for Allied
First in one or more additional capacities, and that the terms of the original
engagement may be incorporated by reference in one or more separate agreements.
The provisions of Paragraph 3 herein shall apply to the original engagement, any
such additional engagement, any modification of the original engagement or such
additional engagement and shall remain in full force and effect following the
completion or termination of RP Financial's engagement(s). This agreement
constitutes the entire understanding of Allied Pilots and RP Financial
concerning the subject matter addressed herein, and such contract shall be
governed and construed in accordance with the laws of the Commonwealth of
Virginia. This agreement may not be modified, supplemented or amended except by
written agreement executed by both parties.

<PAGE>

KENNETH L. BERTRAND
AUGUST 7, 2001
PAGE 1

         Allied First and RP Financial are not affiliated, and neither Allied
First nor RP Financial has an economic interest in, or is held in common with,
the other and has not derived a significant portion of its gross revenues,
receipts or net income for any period from transactions with the other.

                              * * * * * * * * * * *

         Please acknowledge your agreement to the foregoing by signing as
indicated below and returning to RP Financial a signed copy of this letter,
together with the initial retainer fee of $5,000.

                                           Sincerely,

                                           /s/ James P. Hennessey
                                           ----------------------
                                           James P. Hennessey
                                           Senior Vice President

Agreed To and Accepted By:

/s/ Kenneth L. Bertrand
-----------------------
Kenneth L. Bertrand
President and Chief Executive Officer
Allied First Savings Bank, Naperville, Illinois

Date Executed:    August 8, 2001<PAGE>

                                                                   EXHIBIT 10.CA

     THIS AGREEMENT, made this 1 st day of July, 2000, by and between: HYDROMER,
INC., a New Jersey Corporation with its office located at 35 Columbia Road,
Branchburg, New Jersey 08876 ("HYDROMER");

and

     Becton, Dickinson and Company, Inc. with its corporate headquarters at 1
Becton Drive, Franklin Lakes, NJ 07417-1880 and AFFILIATES jointly and separably
referred to as ("LICENSEE").

     WHEREAS, HYDROMER owns patent rights relating to the production of articles
based on the art taught in certain patents; and

     WHEREAS, LICENSEE desires to obtain a license from HYDROMER under those
patent rights to avoid any controversy regarding the commercialization of
LICENSEE'S Hydrocath Assure product.\

     NOW, THEREFORE, in consideration of the premises and the performance of the
mutual covenants herein contained, the parties hereto agree as follows:

     1.0  DEFINITIONS. For the purpose of this AGREEMENT, the following shall
          apply:

          1.1 "AFFILIATES" shall mean all corporations, partnerships, sole
proprietors and other forms of business organizations, the business of which is
controlled by Becton, Dickinson and Company, any corporation in which Becton,
Dickinson and Company owns at least 50% of the stock entitled to vote for
directors, and any corporation, firm, partnership, proprietorship or other form
of business in which Becton, Dickinson and Company has the maximum amount of
ownership interest permitted by local law.

               With respect to AFFILIATES, Becton, Dickinson and Company upon
request will provide HYDROMER with the names, locations, addresses and interests
of such AFFILIATES. Becton, Dickinson and Company hereby guarantees the
obligations of its' AFFILIATES with respect to the terms of this Agreement as if
the obligations are its own.

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NON-EXCLUSIVE LICENSE AGREEMENT with HYDROMER, INC                        Page-2
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          1.2 "PRODUCTS"

          1.3 "PATENT RIGHTS" means United States Patent No. 4,769,013 and
foreign patents and patent applications based thereon or claiming priority from
U.S. patent application # 416,906 filed 9/13/82 and further including but not
limited to Canadian Patent No. 1,212,321, German Patent No. 3,379,573.8-08/EP,
European Patent No. 119,248 and Japanese Patent No. 1,810,017 and any division,
continuation, continuation-in-part, patent of addition, extension, substitution,
confirmation, reexamination or reissue of said patents and applications.

          1.4 "NET SALES PRICE" shall mean the gross invoice price at which
PRODUCTS are shipped to THIRD PARTIES, less discounts allowed to distributors,
discounts allowed dealers, refunds, replacements or credits allowed to
purchasers for return of PRODUCT or as reimbursement for damaged PRODUCT,
freight, postage, insurance and other shipping charges, sales and use taxes,
value added taxes, customs duties and any other governmental charges imposed on
the production, importation, use or sale of PRODUCT except income taxes. Should
LICENSEE sell PRODUCT in combination with other components or products, then the
net sales price computation shall be based on the average net sales price
charged during the applicable quarter by LICENSEE for the PRODUCT when
separately invoiced or priced. In the event the PRODUCT has not been separately
invoiced or priced during the applicable quarterly period, the applicable
royalty rate shall be applied to the portion of the NET SALE PRICE of the kit or
package in which PRODUCT is shipped that is equal to the portion of the cost of
the kit or package attributable to the cost of PRODUCT. Thus, where the cost of
PRODUCT is x% of the total cost of the kit or package, the applicable royalty
rate shall be

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NON-EXCLUSIVE LICENSE AGREEMENT with HYDROMER, INC                        Page-3
================================================================================

applied to x% of the NET SALES PRICE of the kit or package. Pursuant to section
4.0 and in accordance with the obligations stated therein, LICENSEE shall
maintain the cost records used to ascertain x%.

               1.5 "TERRITORY" means worldwide.

               1.6 "THIRD PARTIES" means any person or entity other then
                    LICENSEE.

               1.7 "VALID CLAIM" shall mean a claim of an issued or granted
patent within the PATENT RIGHTS so long as such claim shall not have been
disclaimed by HYDROMER or shall not have been held invalid or not enforceable or
not infringed by LICENSEE by a tribunal of competent jurisdiction from whose
judgement no appeal is taken or allowed.

     2.0  GRANT.

               2.1 HYDROMER hereby grants LICENSEE a non-exclusive license to
make, have made, use, sell, offer for sale and import PRODUCTS in the TERRITORY
under the PATENT RIGHTS.

     3.0  ROYALTIES.

               3.1. As consideration for this grant of rights, LICENSEE will
pay to HYDROMER the non-refundable sum of $25,000 representing royalties due and
owing from the beginning of time until close of business on the day before this
Agreement becomes effective, said amount being due in full upon execution of
this AGREEMENT. Said sum will not become a credit against any royalties payable
on or after the effective date of this Agreement.

               3.2 In addition to the payment provided in Paragraph 3.1 hereof ,
a running royalty payable quarterly will accrue from LICENSEE to HYDROMER for
each PRODUCT shipped to THIRD PARTIES or for each quarter this License is in
effect

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NON-EXCLUSIVE LICENSE AGREEMENT with HYDROMER, INC                        Page-4
================================================================================

(whichever is greater), as set forth in Schedule A.

The obligation to pay royalties to HYDROMER is imposed only once with respect to
the same unit of PRODUCTS regardless of the number of licensed patents covering
the same. There shall be no obligation to pay HYDROMER under this Article on
sales of PRODUCTS between LICENSEE and its AFFILIATES or between AFFILIATES but
in such instances the obligation to pay royalties shall arise upon the sale by
LICENSEE or AFFILIATES of PRODUCTS to THIRD PARTIES. Royalties due under this
Article shall be deemed to accrue when PRODUCT is shipped to THIRD PARTIES
and/or at the end of each quarter if the unit royalty is less then the quarterly
royalty.

     4.0  ACCOUNTING. For accounting purposes, quarters will start on the first
day of each January, April, July, and October, following the date of execution
of this AGREEMENT and end on the last day of the next succeeding March, June,
September, and December, respectively. Within forty-five (45) days after the
close of each quarter hereof, LICENSEE shall render to HYDROMER a written report
with respect to all royalty payments due hereunder, and with such report, pay in
full in United States dollars all amounts due in respect of such quarter. To the
extent sales may be made in a foreign country the rate of exchange to be used in
computing the equivalent United States Dollars due to HYDROMER as royalty shall
be the rate recited in the report entitled "Rates of Exchange" issued monthly by
LICENSEE's International Financial Department which LICENSEE represents and
warrants provides spot exchange rates for each foreign country where sales were
made, on the last business day of the quarter when sales occurred, provided that
payments based on sales in any foreign country shall be payable only after
deducting for exchange and all other charges due foreign governments, including
withholding taxes, arising from the origin and transmittal of such royalties,
and further provided that the foregoing is subject to the right to make payment
in any country

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NON-EXCLUSIVE LICENSE AGREEMENT with HYDROMER, INC                        Page-5
================================================================================

where currency is blocked and where legal conversion of the currency billed
cannot be made into United States Dollars by depositing such payments in
HYDROMER's name in a bank designated by HYDROMER within such country. Such
report shall indicate for such quarter the number of units, the NET SALES PRICE,
and the amount of sales by LICENSEE, product code of PRODUCTS shipped by
LICENSEE with respect to which royalty payments are due. LICENSEE shall keep
accurate records in sufficient detail in accordance with its own document
retention policy (which shall be provided to HYDROMER upon request) to enable
the aforesaid payments to be determined, provided however all such records shall
be maintained for a period of three years. At HYDROMER's request, LICENSEE,
shall permit an independent certified public accountant acceptable to LICENSEE
to have access once in each calendar year, during regular business hours and
upon reasonable notice to LICENSEE, to such of the records of LICENSEE as may be
necessary to verify the accuracy of the reports required under this AGREEMENT
and received from LICENSEE by HYDROMER in the previous three calendar years;
provided, however said accountant shall keep all information of LICENSEE
confidential and shall disclose to HYDROMER and LICENSEE only the amount of any
deficiency or overpayment found. In the event the deficiency exceeds 3% of
royalty payments audited, LICENSEE shall bear the full costs of the audit. In
the event of an overpayment or underpayment, HYDROMER or LICENSEE as the case
may be shall repay such overpayment within 10 days of receiving the accountant's
report which shall be deemed final and not subject to any challenge except for
fraud. The failure of HYDROMER to request verification of any report during a
three year calendar period starting on the January 1st, next occurring shall be
considered acceptance of the accuracy of such report and LICENSEE shall have no
obligation to maintain any records thereafter.

<PAGE>

NON-EXCLUSIVE LICENSE AGREEMENT with HYDROMER, INC                        Page-6
================================================================================

     5.0  WARRANTY.

          5.1  HYDROMER warrants that it is the owner of all right, title and
interest in and to the PATENT RIGHTS and has the unrestricted power and
authority to grant the licenses as provided herein. HYDROMER represents that as
of the date of this AGREEMENT it has no knowledge of any pending or threatened
litigation against HYDROMER which might impair the rights licensed hereunder.

          5.2  HYDROMER shall indemnify, defend and hold harmless LICENSEE, its
directors, officers, employees and agents from any and all loss, damage,
demands, actions and causes of action, assessments, liabilities, costs and
expenses which they may incur because of HYDROMER's breach of any representation
or warranty

          5.3  Except for the warranty in section 5.1, the PATENT RIGHTS granted
are granted AS IS. Except for claims under section 5.1 LICENSEE shall indemnify,
defend and hold harmless HYDROMER, its directors, officers, employees and agents
from any and all loss, damage, demands, actions and causes of action,
assessments, liabilities, costs and expenses which they may incur associated
directly or indirectly with the PRODUCTS, including but not limited to product
liability, liability under the laws or regulations of any sovereignty with
respect to medical devices or any export/import laws or regulations, provided
however, LICENSEE shall have no duty to indemnify HYDROMER, if a court of
competent jurisdiction finds that the claims are substantially due to any
chemical products supplied by HYDROMER AND USED WITHOUT MODIFICATION by
LICENSEE. LICENSEE recognizes that such chemical products supplied by HYDROMER
may contain certain solvents which must be removed by proper processing and
curing. Such processing and curing is the sole and exclusive responsibility and
liability of LICENSEE.

          5.4  LICENSEE represents that the art taught by the PATENT RIGHTS has
not

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NON-EXCLUSIVE LICENSE AGREEMENT with HYDROMER, INC                        Page-7
================================================================================

been used on any product that LICENSEE makes, uses, sells, offers for sale or
imports other then the PRODUCT.

     6.0  EFFECTIVE DATE AND TERM.

          6.1 This AGREEMENT will become effective on the day and year first
written above and expire upon the expiration of the last to expire of the PATENT
RIGHTS, except that after expiration of the U.S. PATENT RIGHTS, royalties will
continue to be paid only on sales of PRODUCTS in countries in which unexpired
patents are in effect. After such expiration of this AGREEMENT, LICENSEE shall
have the right to make, have made, use, sell, offer for sale or import PRODUCT
without the further payment of royalty or otherwise accounting to HYDROMER.

          6.2  If either party hereto shall commit any breach of the provisions
of this AGREEMENT, and shall not, within thirty (30) days' written notice of
such breach by the other party hereto, correct such breach then such other party
may, by written notice to the breaching party, immediately terminate this
AGREEMENT. The right of either party to take such action shall not be affected
in any way by its failure to take any action with respect to any previous
breach.

          6.3  LICENSEE shall have the right to terminate this AGREEMENT on
sixty (60) days advance written notice to HYDROMER provided LICENSEE is then not
in material breach of any provisions herein.

          6.4  If either party should exercise its right to terminate this
AGREEMENT, under any applicable provision of this AGREEMENT, then LICENSEE's
rights and licenses under Sections 2 shall immediately terminate. Termination of
this AGREEMENT shall not relieve either party of obligations incurred prior to
termination.

     7.0  INFRINGEMENT.

          7.1  Should any patent infringement action be brought against

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NON-EXCLUSIVE LICENSE AGREEMENT with HYDROMER, INC                        Page-8
================================================================================

LICENSEE in any country of the TERRITORY as a result of LICENSEE's exercising of
rights granted to it hereunder, then in respect of such country, LICENSEE shall
have the right to suspend payment of royalties due to HYDROMER in that country
until such time as the action is resolved, although such royalties shall
continue to accrue. If the action is resolved favorably to LICENSEE, all accrued
royalties shall immediately be paid to HYDROMER. If the action is resolved
unfavorably to LICENSEE, then accrued and future royalties shall by extinguished
in that country. The foregoing shall be HYDROMER's sole and exclusive liability
to LICENSEE in the event of such an infringement suit.

          7.2  HYDROMER shall take reasonable steps to abate any third party
infringement of PATENT RIGHTS with respect to products which compete with
PRODUCTS. If HYDROMER does not take steps reasonably calculated to abate such
third party infringement or require such third party to pay a royalty to
HYDROMER under a license to PATENT RIGHTS, then LICENSEE shall have no
obligation to pay any royalties to HYDROMER, and such royalties shall be
forgiven, but only to the extent forgiven to such third party, for the
manufacture, use, importation, sale, offer for sale of PRODUCTS until such time
as the third party infringement stops or such third party accepts a license from
HYDROMER under PATENT RIGHTS for products that compete with PRODUCTS.

     8.0  MOST FAVORED LICENSEE

          8.1  If HYDROMER grants to any THIRD PARTY manufacturer of products
which compete with PRODUCTS, a license under PATENT RIGHTS which permits such
third party to make, have made, use, offer to sell, sell or import such PRODUCT
at royalty rates which, calculated on an equivalent basis, are lower then those
provided in this Agreement, then HYDROMER will notify LICENSEE in writing within
ten 10 days after the execution by HYDROMER of such license and reduce the
royalty hereunder, effective on

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NON-EXCLUSIVE LICENSE AGREEMENT with HYDROMER, INC                        Page-9
================================================================================

the date on which they become effective in such license.

     9.0  RELEASE

          9.1  HYDROMER irrevocably releases LICENSEE and all purchasers and
users of PRODUCT acquired mediately or immediately, from LICENSEE from all
claims, demands and rights of action which HYDROMER may have on account of any
infringements or alleged infringement of any PATENT RIGHTS by the manufacture,
use, importation, sale, offer for sale or other disposition of PRODUCT which,
prior to the Effective Date, were manufactured, used, imported, sold, shipped or
offered for sale by LICENSEE.

     10.0 CONFIDENTIALITY.

          10.1 During the term of this LICENSE, LICENSEE may request the support
of Hydromer's technical personnel for the purpose of evaluating the processes
used by LICENSEE. Both parties recognize and agree that such processes are
initially the proprietary property of LICENSEE. In the case of any improvement
by HYDROMER such improvement is proprietary to HYDROMER and shall be included in
this LICENSE.

          10.2 In addition HYDROMER and LICENSEE would like to engage in
technical discussions concerning LICENSEE's PRODUCTS and processes for coating
those PRODUCTS which existed prior to the date of this License with respect to
HYDROMER"s chemical products relating to hydrophilic lubricous coatings using
coating techniques and curing processes to graft such products to the PRODUCTS
(hereinafter referred to as "CONFIDENTIAL INFORMATION" of each party as the
context indicates) for the purpose of enabling the parties to evaluate
LICENSEE"s use of HYDROMER"s coatings on LICENSEE"s PRODUCTS.

These discussions between HYDROMER and LICENSEE may involve the exchange of
CONFIDENTIAL INFORMATION from one party to the other, the parties agree that any

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NON-EXCLUSIVE LICENSE AGREEMENT with HYDROMER, INC                       Page-10
================================================================================

disclosure of CONFIDENTIAL INFORMATION to the other shall be made, under the
following terms and conditions:

(a)  In the event that one party finds it desirable or necessary in any
     discussion to disclose to the other party its CONFIDENTIAL INFORMATION, the
     recipient agrees that, for a period of five (5) years after the expiration
     or termination of this Agreement, it shall not use for its own benefit or
     disclose any information it receives from the discloser that is marked
     confidential or otherwise indicated as confidential to anyone not employed
     by the recipient or its affiliated companies and having a need to know such
     information without the discloser's consent, and shall take the same degree
     of precautions in accordance with procedures which it follows with respect
     to its own confidential information to avoid disclosure of such information
     and shall use such CONFIDENTIAL INFORMATION only for the purpose of this
     Agreement.

     (b)  Both parties hereto agree that information received from the discloser
          shall not be deemed confidential, and the recipient shall have no
          obligation with respect to any such information, which: is already
          known to the recipient as established by the recipient's written
          records; or is or becomes generally known in the trade or business
          pertaining to such information or otherwise becomes publicly known,
          through no wrongful act of the recipient; or is rightfully received
          from a third party without restriction and without breach of this
          Agreement; or is approved for release by written authorization by the
          discloser; or is developed independently of any disclosure made
          hereunder as established by the recipient's written records.

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NON-EXCLUSIVE LICENSE AGREEMENT with HYDROMER, INC                       Page-11
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     (c)  Subject to the various provisions hereof, all written information
          delivered by the discloser to the recipient pursuant to this Agreement
          shall be and remain the discloser's property, and all such written
          information, and copies thereof, shall be promptly returned to the
          discloser upon written request of the discloser. However, the
          recipient shall be entitled to retain one (1) archival copy of all
          such information strictly for legal purposes.

     (d)  Each party hereto represents and warrants to the other party that it
          is under no obligation to any third party that would interfere with
          its ability to reveal the details of its information to the other
          party hereto.

     11.0 GENERAL.

          11.1 ASSIGNMENT. This AGREEMENT and all rights and obligations
hereunder shall be binding upon and shall inure to the benefit of the respective
successors of HYDROMER and LICENSEE. Neither LICENSEE nor HYDROMER shall have
the right to assign any or all of its rights and delegate its obligations under
this AGREEMENT without the prior written consent of the other party which
consent could be subject to certain reasonable conditions including but not
limited to further assurances to perform the obligations herein, guarantees of
performances and/or guarantees of royalty payments by an assignee.

          11.2 ENTIRE AGREEMENT. This AGREEMENT contains the entire agreement
between the parties hereto in respect of the subject matter hereof. This
AGREEMENT may not be released, discharged, abandoned, changed or modified in any
manner except by an instrument in writing signed by a duly authorized officer or
representative of each of the parties hereto.

<PAGE>

NON-EXCLUSIVE LICENSE AGREEMENT with HYDROMER, INC                       Page-12
================================================================================

          11.3 WAIVER AND SEVERABILITY. The waiver by either of the parties of
any breach of any provision hereof by the other party shall not be construed to
be a waiver of any succeeding breach of such provision of a waiver of the
provision itself.

          11.4 COLLECTION. In the event Hydromer must employ or retain a
collection agency and/or an attorney to aid in the collection of royalties to
the extent LICENSEE is in breach of the provisions of this LICENSE in respect to
the payment thereof, LICENSEE agrees to compensate HYDROMER for any fees/costs
paid to such party.

          11.5 GOVERNING LAW. This AGREEMENT shall be construed and interpreted
in accordance with the laws of the State of New Jersey and the courts of the
State of New Jersey shall have jurisdiction over the parties including
AFFILIATES and all matters arising hereunder. LICENSEE agrees that service on
Becton, Dickinson and Company, Inc., 1 Becton Drive, Franklin Lakes, NJ
07417-1880 shall constitute service on Becton, Dickinson and Company and all
AFFILIATES simultaneously.

          11.6 INVALIDITY. If any of the provisions of this AGREEMENT, or part
thereof, is held to be invalid or unenforceable, such invalidity or
unenforceability shall not affect any other provision of this AGREEMENT. 11.7
NOTICE. Any notice required or to be given hereunder shall be considered
delivered when deposited, postage prepaid, in the United States mail, registered
mail, to the address of the other party as specified below or as subsequently
modified in writing by the parties.

          IF TO HYDROMER:

                           Hydromer, Inc.
                           35 Columbia Road
                           Branchburg, New Jersey  08876
                           Attn:  Manfred F. Dyck, President

<PAGE>

NON-EXCLUSIVE LICENSE AGREEMENT with HYDROMER, INC                       Page-13
================================================================================

                   IF TO LICENSEE:

                           Becton, Dickinson and Company
                           1 Becton Drive
                           Franklin Lakes, N.J.  07417-1880
                           Att: Chief Intellectual Property Counsel

          11.8 NO ADMISSION, RESTORATION. By entering into this Agreement,
LICENSEE is not admitting that its Hydrocath Assure product falls within the
claims of PATENT RIGHTS. Instead, LICENSEE expressly reserves the right, and
HYDROMER expressly recognizes LICENSEE's right, to terminate this Agreement
pursuant to section 6.3.

IN WITNESS WHEREOF, the parties hereto have caused this AGREEMENT to be executed
themselves and as agents for and guarantors of, AFFILIATES, effective the day
and year set forth above.

Becton Dickinson and Company and all AFFILIATES

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

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

Date:
     ------------------------

HYDROMER, Inc.

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

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

Date:
     ------------------------

<PAGE>

NON-EXCLUSIVE LICENSE AGREEMENT with HYDROMER, INC                       Page-14
================================================================================

Schedule A:

Licensee shall be obligated to pay a royalty computed as the greater of the
Royalty calculated based on a percent or a fixed amount.

Quarter                Royalty %                 Fixed amount

1 st quarter           2.5                       $ 5,000
beginning
  July 1, 2000)

and each quarter       2.5                       $ 5,000
thereafter

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00029-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00029-of-00352.parquet"}]]