-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
 MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen
 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 C0zcg2bL5YN/4wxdSA/pa8s5gRUkXop7oOBgF+C2adk0LUqy1MTLXuyR5F50uy3P
 AajCcuRBoTuyr1CCQ/+Cjw==

<SEC-DOCUMENT>0000927946-05-000002.txt : 20050110
<SEC-HEADER>0000927946-05-000002.hdr.sgml : 20050110
<ACCEPTANCE-DATETIME>20050110170118
ACCESSION NUMBER:		0000927946-05-000002
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		8
CONFORMED PERIOD OF REPORT:	20050104
ITEM INFORMATION:		Entry into a Material Definitive Agreement
ITEM INFORMATION:		Completion of Acquisition or Disposition of Assets
ITEM INFORMATION:		Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20050110
DATE AS OF CHANGE:		20050110

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			BIOANALYTICAL SYSTEMS INC
		CENTRAL INDEX KEY:			0000720154
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-COMMERCIAL PHYSICAL & BIOLOGICAL RESEARCH [8731]
		IRS NUMBER:				351345024
		STATE OF INCORPORATION:			IN
		FISCAL YEAR END:			0930

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-23357
		FILM NUMBER:		05521464

	BUSINESS ADDRESS:	
		STREET 1:		2701 KENT AVE
		CITY:			WEST LAFAYETT
		STATE:			IN
		ZIP:			47906-1382
		BUSINESS PHONE:		3174634527

	MAIL ADDRESS:	
		STREET 1:		2701 KENT AVENUE
		CITY:			WEST LAFAYETTE
		STATE:			IN
		ZIP:			47906-1382
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>bas8k.htm
<DESCRIPTION>BIOANALYTICAL SYSTEMS, INC. - 8K
<TEXT>

<HTML>
<HEAD>
<TITLE>Bioanalytical Systems, Inc. 8K</TITLE>
</HEAD>
<BODY>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" size=2>
UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION<BR>
Washington, D.C. 20549<BR>
<BR>
FORM 8-K<BR>
<BR>
CURRENT REPORT<BR>
<BR>

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934<BR>
<BR>
Date of Report (Date of earliest event reported):&nbsp;&nbsp;January 4, 2005
</font></P>
<BR>


<!-- MARKER FORMAT-SHEET="Signature Block w/Company Name" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>

<TD align=center colspan=3 WIDTH=33%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
BIOANALYTICAL SYSTEMS, INC.<hr width=250>
(Exact name of registrant as specified in its charter)
</FONT></TD></tr>

<TR>
<TD>&nbsp;</td>
</TR>



<TR VALIGN=TOP>
<TD align=center WIDTH=34%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Indiana<HR width=100>
(State or other<BR>
jurisdiction of<BR>
incorporation or<BR>
organization)</FONT></TD>

<TD align=center WIDTH=33%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
0-23357<hR width=150>
(Commission File Number)
</FONT></TD>

<TD align=center WIDTH=33%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
35-1345024<HR width=150>
(I.R.S. Employer<BR>
Identification No.)</FONT></TD>
</TR>
</TABLE>
<BR>



<!-- MARKER FORMAT-SHEET="Signature Block w/Company Name" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD align=center WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
2701 KENT AVENUE<BR>
WEST LAFAYETTE, INDIANA<HR width=250>
(Address of principal executive offices)
</FONT></TD>
<TD align=center WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
47906-1382<HR width=100>
(Zip Code)
</FONT></TD>
</TR>
</TABLE>
<BR>
<BR>

<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" size=2>
Registrant's telephone number, including area code:&nbsp;&nbsp;(765)
463-4527</font></P>



<PAGE>


<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Item 1.01.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ENTRY INTO A MATERIAL
DEFINITIVE AGREEMENT.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Default" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;See discussions in Item 2.01 and
Item 2.03.</FONT></P>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Item 2.01.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;COMPLETION OF
ACQUISITION OR DISPOSITION OF ASSETS</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On January 5, 2005, BASi
Maryland, Inc., (&#147;BASi Maryland&#148;) a wholly-owned subsidiary of
Bioanalytical Systems, Inc. (&#147;BASi&#148;), closed a Purchase and Sale
Agreement by and between BASi Maryland, as the general partner in the PKLB
Limited Partnership and 300 W. Fayette Street, LLC, a subsidiary of The Kevin F.
Donohoe Company for the sale of the parcel of land situated at 300-306 West
Fayette Street, Baltimore City, Maryland and the building located thereon (the
&#147;Property&#148;) for a purchase price of Six Million Five Hundred Thousand
Dollars ($6,500,000.00). The Property houses the clinical research facilities of
BASi Maryland. Effective the same day, BASi Maryland entered into a three-year
lease with 300 W. Fayette Street, LLC for 101,000 square feet of space in the
building at an initial rent of Sixty-Seven Thousand Three Hundred Thirty-Three
Dollars and Thirty-Three Cents ($67,333.33) per month (the &#147;Lease&#148;).
Rent is secured by a letter of credit as further described in the Lease. BASi
Maryland&#146;s financial obligations in the Lease are guaranteed by BASi.
</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Default" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The foregoing discussion of the
Purchase and Sale Agreement is entirely qualified by reference to the Purchase
and Sale Agreement which is attached hereto as Exhibit 10.1, the amendments to
the Purchase and Sale Agreement, attached as Exhibits 10.2 and 10.3 and the
Lease attached hereto as Exhibit 10.4 and incorporated herein by this reference.
</FONT></P>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Item 2.03.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CREATION OF A DIRECT
FINANCIAL OBLIGATION OR AN OBLIGATION UNDER AN OFF-BALANCE SHEET ARRANGEMENT OF
A REGISTRANT.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On January 4, 2005, BASi and
National City Bank of Indiana, as successor to The Provident Bank
(&#147;National City&#148;) executed an Amended and Restated Credit Agreement
(the &#147;Credit Agreement&#148;), a Replacement Promissory Note, and an
Amended and Restated General Security Agreement (collectively, the &#147;Credit
Facility&#148;). The Credit Facility replaces a credit agreement between BASi
and The Provident Bank, originally dated October 12, 2002 as amended.
</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Credit Facility may be drawn
up to a maximum aggregate principal amount of the lesser of $6,000,000 or the
&#147;Borrowing Base&#148; of BASi (as defined in the Credit Agreement) (against
which there is currently no outstanding balance). The Credit Facility bears
interest at an annual rate equal to the sum of National City&#146;s &#147;Prime
Rate&#148; (as defined in the Credit Agreement), plus an additional 0.25% if
BASi exceeds a &#147;Senior Debt Ratio&#148; that is specified and defined in
the Credit Agreement. Prime Rate interest payments are due monthly. In addition,
BASi may elect to have interest accrue at the &#147;Eurodollar Rate&#148; (as
defined in the Credit Agreement), plus 2.50% to 3.00%, for up to three different
advances on the Credit Facility. Interest payments on the Eurodollar Rate are
due on the last day of each applicable &#147;Interest Period&#148; (as defined
in the Credit Agreement). The Credit Facility also carries an annual interest
rate fee of 1.50% for all standby letters of credit and commercial letters of
credit, and a 0.25% fee for the portion of the Credit Facility which is unused,
minus the amount of all letters of credit. These fees are payable quarterly.
Should any balance remain on the Credit Facility after December 31, 2007 or
while there is an uncured Default (as defined in the Credit Agreement), the
interest rate on the Credit Facility increases by 4.0% over the rate previously
in effect. </FONT></P>


<PAGE>




<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The principal balance and all
accrued interest on the Credit Facility are due on December&nbsp;31, 2007. An
exit fee of $150,000 applies if BASi terminates the Credit Facility before
September 30, 2006. The Credit Facility may be accelerated upon the occurrence
of any Default by BASi defined in the Credit Agreement, which includes, failing
to make any payment when due; breaching any covenant, term, or condition and
other customary events of default. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The obligations under the Credit
Facility are guaranteed by each U.S. subsidiary of BASi. BASi also granted the
bank a security interest in substantially all of its operational assets and
other real assets and pledged to the bank all outstanding capital stock of each
of its U.S. subsidiaries and 65% of the outstanding capital stock of each of its
non-U.S. subsidiaries. In addition, BASi made a collateral assignment to the
bank of a life insurance policy on its Chairman and Chief Executive Officer.
</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the terms of Credit
Facility and the Lease, BASi has agreed to restrict advances to subsidiaries,
limit additional indebtedness and capital expenditures as well as to comply with
certain financial covenants outlined in the Credit Facility and the Lease. The
Credit Facility and the Lease contain cross-default provisions. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The foregoing discussion of the
Credit Facility is entirely qualified by reference to the Credit Agreement,
Note, and Security Agreement, which are attached as Exhibits 10.1, 10.2 and
10.3, and incorporated herein by this reference. </FONT></P>

<!-- MARKER FORMAT-SHEET="ARTICLE -TNR" FSL="Workstation" -->
<A NAME=A001></A>
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Item 9.01.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FINANCIAL STATEMENTS
AND EXHIBITS.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
     <P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          Not applicable.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
     <P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          Not applicable.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Default" -->
     <P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          Exhibits.</FONT></P>


<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1&nbsp;&nbsp;&nbsp;&nbsp;Purchase
and Sale Agreement between BASi Maryland, Inc. and 300 W. Fayette Street, LLC,
closed January 5, 2005.
</FONT></P>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2&nbsp;&nbsp;&nbsp;&nbsp;Form of First
Amendment to the Purchase and Sale Agreement dated September 7, 2004.
</FONT></P>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3&nbsp;&nbsp;&nbsp;&nbsp;Form of Second
Amendment to the Purchase and Sale Agreement dated on or about November 11, 2004.
</FONT></P>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.4&nbsp;&nbsp;&nbsp;&nbsp;Form
of Office Lease by and between BASi Maryland, Inc. and 300 W. Fayette Street,
LLC.
</FONT></P>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.5&nbsp;&nbsp;&nbsp;&nbsp;Amended
and Restated Credit Agreement between Bioanalytical Systems, Inc. and National
City Bank, executed January 4, 2005.
</FONT></P>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.6&nbsp;&nbsp;&nbsp;&nbsp;Replacement
Promissory Note between Bioanalytical Systems, Inc. and National City Bank,
executed January 4, 2005.
</FONT></P>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.7&nbsp;&nbsp;&nbsp;&nbsp;Amended
and Restated General Security Agreement between Bioanalytical Systems, Inc. and
National City Bank, executed January 4, 2005.
</FONT></P>

<PAGE>




<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<U><B>SIGNATURES</B></U></FONT></P>
<BR>


<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Default" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of
the Securities Exchange Act of 1934, the registrant has duly caused this report
to be signed on its behalf by the undersigned hereunto duly authorized.
</FONT></P>

<!-- MARKER FORMAT-SHEET="Signature Block" FSL="Workstation" -->
<TABLE WIDTH=100% CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=60%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<BR><BR><BR><BR><BR>Date:&nbsp;&nbsp;January 7, 2005</FONT></TD>
<TD WIDTH=40%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Bioanalytical Systems, Inc.<BR>
<BR>
<BR>
<BR>
<BR>
By:&nbsp;&nbsp;/s/&nbsp;&nbsp;Michael R. Cox<HR>
Michael R. Cox<BR>
VP-Finance, Chief Financial Officer<BR>
and Treasurer<BR></font>
</TD>
</TR>
</TABLE>
<BR>




<PAGE>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<U><B>Exhibit Index</B></U>
</FONT></P>
<BR>

<TABLE CELLPADDING=0 CELLSPACING=8 BORDER=0 align=center WIDTH=100%>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Exhibit No.</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Description</FONT><HR WIDTH=95% SIZE=1 COLOR=BLACK NOSHADE></TH></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=10% ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>10.1</FONT></TD>
     <TD WIDTH=90% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Purchase and Sale Agreement between BASi Maryland, Inc. and 300 W. Fayette Street, LLC, closed January 5, 2005.</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>10.2</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Form of First Amendment to the Purchase and Sale Agreement dated September 7, 2004.</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>10.3</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Form of Second Amendment to the Purchase and Sale Agreement dated on or about November 11, 2004.</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>10.4</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Form of Office Lease by and between BASi Maryland, Inc. and 300 W. Fayette Street, LLC</FONT></TD></TR>
<TR VALIGN=top>
     <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>10.5</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Amended and Restated Credit Agreement between Bioanalytical Systems, Inc. and National City Bank, executed January 4, 2005.</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>10.6</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Replacement Promissory Note between Bioanalytical Systems, Inc. and National City Bank, executed January 4, 2005.</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>10.7</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Amended and Restated General Security Agreement between Bioanalytical Systems,
Inc. and National City Bank, executed January 4, 2005.</FONT></TD></TR>
</TABLE>


</BODY>
</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>purchaseandsaleagree.htm
<DESCRIPTION>PURCHASE AND SALE AGREEMENT
<TEXT>

<HTML>
<HEAD>
<TITLE>Purchase and Sale Agreement</TITLE>
</HEAD>
<BODY>



<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
PURCHASE AND SALE AGREEMENT<BR>
<BR>
<BR>
BETWEEN<BR>
<BR>
<BR>
PKLB LIMITED PARTNERSHIP, a Maryland partnership having<BR>
BASi MARYLAND, INC., a Maryland corporation as its general partner<BR>
<BR>
<BR>
AS SELLER<BR>
<BR>
<BR>
AND<BR>
<BR>
<BR>
THE KEVIN F. DONOHOE COMPANY, INC.<BR>
<BR>
<BR>
a Pennsylvania corporation<BR>
<BR>
<BR>
AS PURCHASER<BR>
<BR>
<BR>
As of November 11, 2004</FONT></P>


<PAGE>



<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<B>PURCHASE AND SALE AGREEMENT</B></FONT></P>
<BR>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIS PURCHASE AND SALE AGREEMENT
(this &#147;Agreement&#148;) is made as of the 11th day of November, 2004 (the
&#147;Effective Date&#148;), by and between PKLB LIMITED PARTNERSHIP, a Maryland
partnership having BASi MARYLAND, INC., a Maryland corporation as its general
partner, having an address at 300 W. Fayette Street, Baltimore, Maryland 21201,
and The Kevin F. Donohoe Company, Inc., a Pennsylvania corporation, its
successors and assigns (&#147;Purchaser&#148;), having an address at The Curtis
Center, Suite 700, Independence Square West, Philadelphia, Pennsylvania 19106.
</FONT></P>

<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
W I T N E S S E T H:</FONT></P>

<!-- MARKER FORMAT-SHEET="ARTICLE -TNR" FSL="Workstation" -->
<A NAME=A003></A>
<P ALIGN=CENTER>
<FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE 1.</FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Workstation" -->
<A NAME=A004></A>
<P ALIGN=CENTER>
<FONT FACE="Times New Roman, Times, Serif" SIZE=2>PURCHASE AND SALE</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Agreement of Purchase and Sale</U>.&nbsp;&nbsp;&nbsp;&nbsp;Purchaser and
Seller entered into a Purchase and Sale Agreement dated July 26, 2004 (the
&#147;Initial Agreement&#148;), a&#146; copy of which is attached hereto as
Exhibit A. The Initial Agreement was terminated by the Purchaser pursuant to
Section&nbsp;3.2 thereof by a letter from Purchaser to Seller dated September
17, 2004. Notwithstanding such termination, the parties hereto wish to proceed
with the sale and purchase of the Property in accordance with the terms and
conditions of the Initial Agreement, which terms and conditions are hereby
incorporated by reference herein, and are modified as set forth
below.</FONT></P>

<!-- MARKER FORMAT-SHEET="ARTICLE -TNR" FSL="Workstation" -->
<A NAME=A005></A>
<P ALIGN=CENTER>
<FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE 2.</FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Workstation" -->
<A NAME=A006></A>
<P ALIGN=CENTER>
<FONT FACE="Times New Roman, Times, Serif" SIZE=2>
MODIFICATIONS TO INITIAL AGREEMENT</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
     <P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          The Purchase Price is Six Million Five Hundred Thousand Dollars ($6,500,000).</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
     <P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          Paragraph 1.5 shall read as follows:</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Default" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;Within
ten (10) business days after the Effective Date, Purchaser shall deposit with First
American Title Insurance Company (the &#147;Escrow Agent&#148;), having its office at 410
E. Pratt Street, Suite 323, Baltimore, Maryland 21202, Attention: Joseph Reineberg, the
sum of One Million Dollars ($1,000,000) (the &#147;Earnest Money&#148;) in good funds,
either by certified bank or cashier&#146;s check or by federal wire transfer. The parties
agree to use commercially reasonable efforts to reach agreement with respect to all title
matters and the final form of the Seller Lease within the ten (10) day period following
the Effective Date. The Earnest Money shall be non-refundable except in the case of (i) a
default by Seller under Section&nbsp;6.2, or (ii) any other provision of this Agreement
pursuant to which Purchaser shall be entitled to a return of the Earnest Money following a
termination hereof. The Escrow Agent shall hold the Earnest Money in an interest-bearing
account in accordance with the terms and conditions of an escrow agreement in a form
reasonably acceptable to Seller, Purchaser and Escrow Agent entered into among Seller,
Purchaser and Escrow Agent simultaneously with the execution of this Agreement. All
interest accruing on such sum shall become a part of the Earnest Money and shall be
distributed as Earnest Money in accordance with the terms of this Agreement.</FONT></P>




<BR>
<BR>
<BR>
<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=1>
</FONT></P>

<PAGE>




<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Paragraph 2.1, 2.2, 2.3 (including subparagraphs 2.3.2, 2.3.3 and 2.3.4) and 2.5
are deleted.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Article 3 shall read as follows:</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Right of Inspection</U>.&nbsp;&nbsp;&nbsp;&nbsp;During the period beginning upon the Effective Date until Closing,
Purchaser shall have the right to make a physical inspection of the Property and to
examine during Seller&#146;s normal business hours, at such place or places at the
Property, in the offices of the property manager or elsewhere as the same may be located,
any operating files maintained by Seller or its property manager in connection with the
redevelopment, leasing, maintenance and/or management of the Property, including, without
limitation, the Leases, lease files, Operating Agreements, insurance policies, bills,
invoices, receipts and other general records relating to the income and expenses of the
Property, correspondence, surveys, engineering reports, plans and specifications,
warranties for services and materials provided to the Property, and environmental audits
and similar materials. Any inspections by Purchaser shall be conducted only during
Seller&#146;s normal business hours and upon at least 24 hours prior notice to Seller.
Purchaser will use commercially reasonable efforts to perform its inspections in a manner
that does not materially interfere with Seller&#146;s business operations being conducted
upon the Property. Purchaser shall be entitled to conduct invasive testing on the Property
with Seller&#146;s prior written consent, which consent shall not be unreasonably
withheld, conditioned or delayed. Purchaser agrees to repair any damage to the Property
caused by Purchaser and to indemnify against and bold Seller harmless from any claim for
liabilities, costs, expenses (including reasonable attorneys&#146; fees actually incurred)
damages or injuries arising out of or resulting from the inspection or testing of the
Property by Purchaser or its agents, and notwithstanding anything to the contrary in this
Agreement, such obligation to indemnify and hold harmless Seller shall survive Closing or
any termination of this Agreement. Purchaser shall maintain public liability and property
damage insurance in the amount of $1,000,000, and automobile liability insurance in an
amount not less than $1,000,000 which insurance coverage shall name Seller as an
additional insured and which insurance coverage shall otherwise be in form and substance
satisfactory to Seller and adequate to insure against all liability of Purchaser and its
consultants, respectively, and each of its agents, employees or contractors, arising out
of the inspections or testing. All inspections and testing shall occur at reasonable times
agreed upon by Seller and Purchaser and shall be conducted so as not to interfere
unreasonably with use of the Property by Seller or its tenants. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Seller Lease</U>.&nbsp;&nbsp;&nbsp;&nbsp;Seller and Purchaser agree to act in good faith to agree upon the terms and
conditions of a triple net lease between Seller, as tenant, and Purchaser, as landlord,
for approximately 101,000 square feet of space on the Property (the &#147;Seller
Lease&#148;), which terms and conditions will include, but shall not be limited to (i) a
lease term of three (3) years beginning with the date of Closing, (ii) base rent equal to
$8.00 per leasable square foot of space on a triple net basis, with Seller being
responsible for all its proportionate share of operating costs, including, without
limitation, utilities, real estate taxes and insurance and all maintenance and repair
costs (including elevators) except that Purchaser shall be responsible for roof repair and
maintenance and all other capital repairs or replacements (including floors, slabs,
foundations and structural elements of the Property), and (iii) an agreement by Purchaser
that it will not intentionally take any action that would materially adversely impact
Seller&#146;s business during the lease term (with the understanding that Seller, as
tenant, is solely responsible for compliance with all laws, rules and regulations
applicable to its business). In order to secure Seller&#146;s obligations under the Lease,
Seller shall deliver to Purchaser at Closing an irrevocable letter of credit in the face
amount of Two Million Eight Hundred Thousand Dollars ($2,800,000) issued by a financial
institution and in form and substance acceptable to Purchaser (the &#147;Letter of
Credit&#148;). The Letter of Credit shall remain in place for the term of the Seller Lease
and may be drawn by Purchaser in the event of Seller&#146;s failure to comply with its
obligations under the Seller Lease or in the event that the Letter of Credit is not
renewed within thirty (30) days of any expiration thereof. Provided no default has
occurred under the Seller Lease, the face amount of the Letter of Credit may be reduced to
Two Million Dollars ($2,000.000) on the first anniversary of the date of the Seller Lease
and to One Million Dollars ($1,000,000) on the second anniversary of the date of the
Seller Lease. </FONT></P>




<BR>
<BR>
<BR>
<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=1>
2</FONT></P>

<PAGE>



<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Paragraph 4.1. shall read as follows:</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;The
Closing shall be held at the offices of Gallagher Evelius &amp; Jones LLP, 216&nbsp;N.
Charles Street, Suite 400, Baltimore, Maryland 21201, on the date selected by the
Purchaser with at least five (5) days prior notice to the Seller not later than the
thirtieth (30th) day following the Effective Date (the &#147;Outside Date&#148;). Buyer
shall have the right to extend the Outside Date by up to ten (10) days by notifying the
Seller on or before the thirtieth (30th) day following the Effective Date of its desire to
so extend the Outside Date.&#148;</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          Paragraph 4.6 is amended by adding the following paragraph;</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;4.6.5&nbsp;&nbsp;&nbsp;&nbsp;
Seller has complied with all of the Schedule&nbsp;B-Section&nbsp;1 requirements applicable
to the Seller as required by the title company in the Title Commitment issued by First
American Title Insurance Company, Commitment No. NOS-106989-PHIL, effective April 24,
2004. Notwithstanding the foregoing, nothing shall relieve the Purchaser of any of the
obligations Purchaser has assumed under the other terms of the Agreement in order to
comply with its Schedule B-1 requirements.&#148;</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
references in the Initial Agreement to the &#147;Effective Date&#148; shall be deemed to
mean the Effective Date of this Agreement. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Default" -->
<A NAME=A007></A>
<P ALIGN=CENTER>
<FONT FACE="Times New Roman, Times, Serif" SIZE=2>
[Signatures follow on next page]</FONT></P>


<BR>
<BR>
<BR>
<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=1>
3</FONT></P>

<PAGE>



<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Default" -->
<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF, and
intending to be legally bound, the undersigned have duly executed this
Agreement. </FONT></P>

<!-- MARKER FORMAT-SHEET="Signature (Single)" FSL="Workstation" -->
<TABLE WIDTH=100% CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=60%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;</FONT></TD>
<TD WIDTH=40%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
SELLER:<BR>
<BR>
PKLB LIMITED PARTNERSHIP<BR>
<BR>
By:&nbsp;&nbsp;BASi MARYLAND, INC., General Partner<BR>
<BR>
<BR>
By:&nbsp;&nbsp;/s/&nbsp;&nbsp;Michael P. Silvon, Ph.D.<HR>
Name:&nbsp;&nbsp;Michael P. Silvon, Ph.D.<BR>
Title:&nbsp;&nbsp;Secretary<BR>
<BR>
<BR>
<BR>
PURCHASER:<BR>
<BR>
THE KEVIN F. DONOHOE COMPANY, INC.<BR>
<BR>
<BR>
By:&nbsp;&nbsp;/s/&nbsp;&nbsp;Henry B. Glover, Jr.<HR>
Name:&nbsp;&nbsp;Henry B. Glover, Jr.<BR>
Title:&nbsp;&nbsp;Vice President<BR>
</FONT></TD>
</TR>
</TABLE>
<BR>





<BR>
<BR>
<BR>
<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=1>
4</FONT></P>

<PAGE>


<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Workstation" -->
<A NAME=A008></A>
<P ALIGN=CENTER>
<FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<U><B>EXHIBIT A</B></U></FONT></P>
<BR>
<BR>
<BR>
<BR>

<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Workstation" -->
<A NAME=A009></A>
<P ALIGN=CENTER>
<FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<B>AGREEMENT OF PURCHASE AND SALE<BR>
<BR>

BETWEEN PKLB LIMITED PARTNERSHIP<BR>
<BR>

&#147;SELLER&#148;<BR>
<BR>

AND<BR>
<BR>

THE KEVIN F. DONOHOE COMPANY, INC.<BR>
<BR>

&#147;BUYER&#148;<BR>
<BR>

DATED JULY 26, 2004</B></FONT></P>



<BR>
<BR>
<BR>
<BR>
<BR>
<BR>
<BR>
<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=1>
5</FONT></P>

<PAGE>






<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>PURCHASE AND SALE AGREEMENT<BR>
<BR>
<BR>

BETWEEN<BR>
<BR>
<BR>

PKLB LIMITED PARTNERSHIP, a Maryland partnership having<BR>
BASi MARYLAND, INC., a Maryland corporation as its general partner<BR>
<BR>
<BR>

AS SELLER<BR>
<BR>
<BR>

AND<BR>
<BR>
<BR>

THE KEVIN F. DONOHOE COMPANY, INC.<BR>
<BR>
<BR>
a Pennsylvania corporation<BR>
<BR>
<BR>
AS PURCHASER<BR>
<BR>
<BR>
As of July 26, 2004<BR>
</FONT></P>






<BR>
<BR>
<BR>
<BR>
<BR>
<BR>
<BR>
<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=1>
</FONT></P>

<PAGE>



<P ALIGN=CENTER>
<FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<B>TABLE OF CONTENTS</B></FONT></P>
<BR>


<TABLE CELLPADDING=7 CELLSPACING=0 BORDER=0 ALIGN=center WIDTH=600>
<TR VALIGN=Bottom>
     <TD WIDTH=98% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE 1&nbsp;&nbsp;&nbsp;PURCHASE AND SALE</FONT></TD>
     <TD WIDTH=2% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;1.1&nbsp;&nbsp;&nbsp;Agreement of Purchase and Sale</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;1.2&nbsp;&nbsp;&nbsp;Property Defined</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;1.3 &nbsp;&nbsp;&nbsp;Permitted Exceptions</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;1.4 &nbsp;&nbsp;&nbsp;Purchase Price</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;1.5 &nbsp;&nbsp;&nbsp;Earnest Money</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;1.6 &nbsp;&nbsp;&nbsp;Independent Contract Consideration</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE 2&nbsp;&nbsp;&nbsp;TITLE, SURVEY AND ENVIRONMENTAL</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;2.1&nbsp;&nbsp;&nbsp;&nbsp;Title Examination; Commitment for Title Insurance</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;2.2 &nbsp;&nbsp;&nbsp;Survey</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;2.3 &nbsp;&nbsp;&nbsp;Title/Survey Objections: Cure of Title/Survey Objections</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;2.4 &nbsp;&nbsp;&nbsp;Conveyance of Title</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;2.5 &nbsp;&nbsp;&nbsp;Environmental Assessment</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;2.6 &nbsp;&nbsp;&nbsp;No Change in Status</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE 3&nbsp;&nbsp;&nbsp;INSPECTION PERIOD</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;3.1 &nbsp;&nbsp;&nbsp;Right of Inspection</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;3.2&nbsp;&nbsp;&nbsp; Right of Termination</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;3.3 &nbsp;&nbsp;&nbsp;Seller Lease</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE 4&nbsp;&nbsp;&nbsp;CLOSING</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;4.1 &nbsp;&nbsp;&nbsp;Time and Place</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;4.2 &nbsp;&nbsp;&nbsp;Seller's Obligations at Closing</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;4.3 &nbsp;&nbsp;&nbsp;Purchaser's Obligations at Closing</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>8&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;4.4 &nbsp;&nbsp;&nbsp;Credits and Prorations</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>8&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;4.5 &nbsp;&nbsp;&nbsp;Closing Costs</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>10&nbsp;</FONT></TD></TR>
</TABLE>


<BR>
<BR>
<BR>
<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=1>
i</FONT></P>

<PAGE>





<TABLE CELLPADDING=7 CELLSPACING=0 BORDER=0 ALIGN=center WIDTH=600>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;4.6 &nbsp;&nbsp;&nbsp;Conditions Precedent to Obligation of Purchaser</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>10&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;4.7 &nbsp;&nbsp;&nbsp;Conditions Precedent to Obligation of Seller</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>11&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE 5&nbsp;&nbsp;&nbsp;REPRESENTATIONS, WARRANTIES AND COVENANTS</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>11&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;5.1 &nbsp;&nbsp;&nbsp;Representations and Warranties of Seller</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>11&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;5.2 &nbsp;&nbsp;&nbsp;Survival of Seller's Representations and Warranties</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>13&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;5.3 &nbsp;&nbsp;&nbsp;Operating Covenant of Seller</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>13&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;5.4 &nbsp;&nbsp;&nbsp;Representations and Warranties of Purchaser</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>13&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;5.5 &nbsp;&nbsp;&nbsp;Survival of Purchaser's Representations and Warranties</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>14&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE 6&nbsp;&nbsp;&nbsp;DEFAULT</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>14&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;6.1 &nbsp;&nbsp;&nbsp;Default by Purchaser</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>14&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;6.2 &nbsp;&nbsp;&nbsp;Default by Seller</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>14&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE 7&nbsp;&nbsp;&nbsp;RISK OF LOSS</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>15&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;7.1 &nbsp;&nbsp;&nbsp;Minor Damage</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>15&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;7.2 &nbsp;&nbsp;&nbsp;Major Damage</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>15&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;7.3 &nbsp;&nbsp;&nbsp;Definition of "Major Loss"</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>15&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE 8&nbsp;&nbsp;&nbsp;COMMISSIONS</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>16&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;8.1 &nbsp;&nbsp;&nbsp;Brokerage Commissions</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>16&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE 9&nbsp;&nbsp;&nbsp;MISCELLANEOUS</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>16&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;9.1 &nbsp;&nbsp;&nbsp;Indemnification</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>16&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;9.2 &nbsp;&nbsp;&nbsp;Public Disclosure</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>16&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;9.3&nbsp;&nbsp;&nbsp; Assignment</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>16&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;9.4 &nbsp;&nbsp;&nbsp;Notices</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>17&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;9.5 &nbsp;&nbsp;&nbsp;Modifications</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>18&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;9.6 &nbsp;&nbsp;&nbsp;Calculation of Time Periods</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>18&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;9.7 &nbsp;&nbsp;&nbsp;Successors and Assigns</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>18&nbsp;</FONT></TD></TR>
</TABLE>

<BR>
<BR>
<BR>
<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=1>
ii</FONT></P>

<PAGE>



<TABLE CELLPADDING=7 CELLSPACING=0 BORDER=0 ALIGN=center WIDTH=600>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;9.8 &nbsp;&nbsp;&nbsp;Entire Agreement</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>18&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;9.9 &nbsp;&nbsp;&nbsp;Further Assurances</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>18&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;9.10 &nbsp;Counterparts</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>18&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;9.11 &nbsp;Severability</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>19&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;9.12 &nbsp;Applicable Law</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>19&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;9.13&nbsp;&nbsp;No Third Party Beneficiary</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>19&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;9.14&nbsp;&nbsp;Exhibits and Schedules</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>19&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;9.15&nbsp;&nbsp;Captions</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>19&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;9.16 &nbsp;Construction</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>19&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;9.17 Termination of Agreement</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>19&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;9.18 &nbsp;Survival</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>20&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;9.19 &nbsp;No Recordation</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>20&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;9.20 &nbsp;Confidentiality</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>20&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>EXHIBIT A&nbsp;&nbsp;&nbsp;LEGAL DESCRIPTION OF THE LAND</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>22&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>EXHIBIT B&nbsp;&nbsp;&nbsp;RENT ROLL</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>23&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>EXHIBIT C&nbsp;&nbsp;&nbsp;OPERATING AGREEMENTS SCHEDULE</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>24&nbsp;</FONT>
</TD></TR>
</TABLE>

<BR>
<BR>
<BR>
<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=1>
iii</FONT></P>

<PAGE>




<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Workstation" -->
<A NAME=A032></A>
<P ALIGN=CENTER>
<FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<B>PURCHASE AND SALE AGREEMENT</B></FONT></P>
<BR>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIS PURCHASE AND SALE AGREEMENT
(this &#147;Agreement&#148;) is made as of the 26th day of July, 2004 (the
&#147;Effective Date&#148;) by and between PKLB LIMITED PARTNERSHIP, a Maryland
partnership having BASi MARYLAND, INC., a Maryland corporation as its general
partner, having an address at 300 W. Fayette Street, Baltimore, Maryland 21201,
and The Kevin&nbsp;F. Donohoe Company, Inc., a Pennsylvania corporation, its
successors and assigns (&#147;Purchaser&#148;), having an address at The Curtis
Center, Suite 700, Independence Square West, Philadelphia, Pennsylvania 19106.
</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
W I T N E S S E T H:</FONT></P>

<!-- MARKER FORMAT-SHEET="ARTICLE -TNR" FSL="Workstation" -->
<A NAME=A033></A>
<P ALIGN=CENTER>
<FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE 1<BR>
PURCHASE AND SALE</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Agreement
of Purchase and Sale. Subject to the terms and conditions hereinafter set forth, Seller
agrees to sell and convey and Purchaser agrees to purchase the following: </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 1- TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.1&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;that certain tract or parcel of land situated at 300-306
W. Fayette Street, Baltimore City, Maryland more particularly described on
Exhibit A attached hereto and made a part hereof, together with all and singular
the rights and appurtenances pertaining to such property, including any right,
title and interest of Seller in and to adjacent streets, alleys or rights-of-way
(the property described in this Subsection 1.1.1 being herein referred to
collectively as the &#147;Land&#148;); </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 1- TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.2
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;all buildings, structures, fixtures and other improvements on the Land (the property
described in this Subsection 1.1.2 being herein referred to collectively as the &#147;Improvements&#148;); </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 1- TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.3 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;all
of Seller&#146;s right, title and interest in and to all tangible personal property upon
the Land or within the Improvements, including, without limitation, appliances,
furniture, carpeting, draperies and curtains, tools and supplies, and other items of
personal property (excluding cash) used exclusively in connection with the operation of
the Land and the Improvements (the property described in this Subsection 1.1.3 being
herein referred to collectively as the &#147;Personal Property&#148;); Personal Property
does not include furniture, appliances, tools and supplies used in the normal course of
Seller&#146;s business. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 1- TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.4 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;all
of Seller&#146;s right, title and interest in and to all agreements listed and described
on Exhibit B (the &#147;Rent Roll&#148;) attached hereto and made a part hereof, pursuant
to which any portion of the Land or Improvements is used or occupied by anyone other than
Seller (the property described in this Subsection 1.1.4 being herein referred to
collectively as the &#147;Leases&#148;) which leases shall include the Seller Lease (as
hereinafter defined); and </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 1- TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1.5 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;all
of Seller&#146;s right, title and interest in and to (i) all contracts and agreements
(collectively, the &#147;Operating Agreements&#148;) listed and described on Exhibit C
(the &#147;Operating Agreements Schedule&#148;) attached hereto and made a part hereof,
relating to the upkeep, repair, maintenance or operation of the Land, Improvements or
Personal Property which will extend beyond the date of Closing (as such term is defined
in Section 4.1 hereof), including specifically, without limitation, all assignable
equipment leases, and (ii) all assignable existing warranties and guaranties (expressed
or implied) issued to Seller in connection with the Improvements or the Personal Property
(the property described in this Subsection 1.1.5 being sometimes herein referred to
collectively as the &#147;Intangibles&#148;). </FONT></P>



<BR>
<BR>
<BR>
<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=1>
</FONT></P>

<PAGE>




<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Property
 Defined</U>.&nbsp;&nbsp;&nbsp;&nbsp;The Land,  the  Improvements,  the  Personal  Property,  the Leases and the
 Intangibles  are  hereinafter sometimes referred to collectively as the "Property."</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Permitted
Exceptions</U>.&nbsp;&nbsp;&nbsp;&nbsp;The Property shall be conveyed subject to the matters which are, or are
deemed to be, Permitted Exceptions pursuant to Article 2 hereof. For purposes hereof,
&#147;Permitted Exceptions&#148; are those matters affecting title to the Property which
Purchaser has agreed or has deemed to agree pursuant to the terms of Section 2.3 to
accept title subject to and in accordance with this Agreement, without any adjustment to
the Purchase Price. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Purchase
Price</U>.&nbsp;&nbsp;&nbsp;&nbsp;Seller is to sell and Purchaser is to purchase the Property for a total of Seven
Million Seven Hundred Fifty Thousand and 00/100 Dollars ($7,750,000) (the &#147;Purchase
Price&#148;). The Purchase Price shall be paid to Seller at Closing (hereinafter
defined). </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Earnest
Money</U>.&nbsp;&nbsp;&nbsp;&nbsp;Within three (3) business days after the execution and delivery of this Agreement,
Purchaser shall deposit with First American Title Insurance Company (the &#147;Escrow
Agent&#148;), having its office at 401 E. Pratt Street, Suite 323, Baltimore, Maryland
21202, Attention: Joseph Reineberg, the sum of Two Hundred Fifty Thousand and 00/100
Dollars ($250,000) (the &#147;Initial Earnest Money&#148;) in good funds, either by
certified bank or cashier&#146;s check or by federal wire transfer. On or before the
expiration of the Inspection Period (as hereinafter defined) and provided Purchaser has
not terminated this Agreement pursuant to Section 3.2 hereof, Purchaser shall make an
additional deposit with the Escrow Agent in the amount of Seven Hundred Fifty Thousand
Dollars ($750,000) (the &#147;Additional Earnest Money&#148;, the Initial Earnest Money
and the Additional Earnest Money are hereinafter collectively referred to as the &#147;Earnest
Money&#148;) and upon expiration of the Inspection Period, if Purchaser has not
terminated this Agreement, the Earnest Money shall be non-refundable (except in the case
of (i) a failure of a condition precedent to Purchaser&#146;s obligation to proceed to
Closing set forth in Section 4.6, (ii) a default by Seller under Section 6.2, (iii) a
termination of this Agreement by Purchaser pursuant to Section 2.3.3, or (iv) any other
provision of this Agreement pursuant to which Purchaser shall be entitled to a return of
the Earnest Money following a termination hereof). The Escrow Agent shall hold the
Earnest Money in an interest-bearing account in accordance with the terms and conditions
of an escrow agreement in a form reasonably acceptable to Seller, Purchaser and Escrow
Agent entered into among Seller, Purchaser and Escrow Agent simultaneously with the
execution of this Agreement. All interest accruing on such sum shall become a part of the
Earnest Money and shall be distributed as Earnest Money in accordance with the terms of
this Agreement. </FONT></P>



<BR>
<BR>
<BR>
<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=1>
2</FONT></P>

<PAGE>




<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Independent
Contract Consideration</U>.&nbsp;&nbsp;&nbsp;&nbsp;In addition to the Earnest Money, Purchaser shall, concurrently
with its execution hereof, deliver to Seller a check in the amount of ONE HUNDRED AND
NO/100 DOLLARS ($100.00), which amount Seller and Purchaser agree has been bargained for
as consideration for Seller&#146;s execution and delivery of this Agreement and Purchaser&#146;s
right to inspect the Property pursuant to Article 3. Such sum is in addition to and
independent of any other consideration or payment provided for in this Agreement and is
non-refundable in all events. </FONT></P>

<P ALIGN=CENTER>
<FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE 2<BR>
TITLE, SURVEY AND ENVIRONMENTAL</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Title Examination; Commitment
for Title Insurance</U>.&nbsp;&nbsp;&nbsp;&nbsp;Purchaser shall have until the
expiration of the Inspection Period to examine title to the Property. During the
Inspection Period, Purchaser may, at its option, obtain from Escrow Agent
sometimes hereinafter referred to as the &#147;Title Company&#148; at
Purchaser&#146;s expense, an ALTA title insurance commitment (the &#147;Title
Commitment&#146;) covering the Property, showing all matters affecting title to
the Property and binding the Title Company to issue at Closing an Owner&#146;s
Policy of Title insurance in the full amount of the Purchase Price. If Purchaser
desires to obtain a Title Commitment, Purchaser shall cause the Title Commitment
to be issued within thirty (30) days after the effective date. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Survey</U>.
&nbsp;&nbsp;&nbsp;&nbsp;During the Inspection Period, Purchaser may, at its
option, employ a surveyor or surveying firm (the &#147;Surveyor&#148;), licensed
by the state in which the Property is located, to survey the Property and
prepare a survey thereof (the &#147;Survey&#148;). If Purchaser desires to
obtain a Survey, Purchaser shall cause the Survey to be prepared within thirty
(30) days after the Effective Date. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 1- TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Title/Survey Objections: Cure
of Title/Survey Objections</U>.&nbsp;&nbsp;&nbsp;&nbsp;Purchaser shall have
until the earlier of (i) ten (10) days after Purchaser&#146;s receipt of both
the Title Commitment and the Survey or (ii) expiration of the Inspection Period
to give written notice to Seller of such objections as Purchaser may have to any
exceptions to title disclosed in the Title Commitment or the Survey. Any notice
of objections sent by Purchaser to Seller shall be accompanied by a copy of the
Survey and a copy of the Title Commitment together with any instrument that is
the subject of Purchaser&#146;s notice of objections. Any exception to title
disclosed in the Title Commitment or the Survey to which Purchaser does not
object by timely written notice shall be a Permitted Exception. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 1- TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3.2 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
the event Purchaser gives timely written notice of objection to any exceptions to title,
Seller shall have the right, but not the obligation, to attempt to remove, satisfy or
otherwise cure any exceptions to title so objected to. Within ten (10) days after receipt
of Purchaser&#146;s notice of objection, (&#147;Seller&#146;s Title Cure Period&#148;)
Seller shall give written notice to Purchaser informing Purchaser of Seller&#146;s
election with respect to such exceptions. If Seller fails to give written notice of
election within such ten (10) day period, Seller shall be deemed to have elected not to
attempt to cure the matter objected to. If Seller elects to attempt to cure any
exceptions, Seller shall be entitled to one or more reasonable adjournments of the
Closing of up to, but not beyond, the sixtieth (60th) day following the date for Closing
set forth in Section 4.1 hereof to attempt such cure. </FONT></P>



<BR>
<BR>
<BR>
<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=1>
3</FONT></P>

<PAGE>




<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 1- TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3.3 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
Seller elects or is deemed to have elected not to cure any exceptions to title objected
to by Purchaser or if, after electing to attempt to cure, Seller determines that it is
unwilling or unable to remove, satisfy or otherwise cure any such exceptions, Purchaser&#146;s
sole remedy hereunder in such event shall be either: (i) to accept title to the Property
subject to such exceptions as if Purchaser had not objected thereto and without reduction
of the Purchase Price or (ii) to terminate this Agreement, whereupon the Escrow Agent
shall return the Earnest Money to Purchaser and the parties hereto shall be relieved of
all further liability and/or obligation hereunder. Seller shall be deemed to have cured
any such exception if the Title Company agrees to affirmatively insure over such
exception. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 1- TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3.4 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To
terminate this Agreement pursuant to this Section 2.3, Purchaser must give written notice
to Seller of its election to terminate not later than (i) five (5) business days after
receipt of written notice from Seller of Seller&#146;s election not to attempt to cure
any exception or of Seller&#146;s determination, having previously elected to attempt to
cure, that it is unable or unwilling to do so or (ii) five (5) days after expiration of
Seller&#146;s Title Cure Period if Seller is deemed herein to have elected not to attempt
to cure such exception. If Purchaser fails to give timely notice of its election to
terminate for any reason whatsoever such exception shall be deemed to be a Permitted
Exception. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Conveyance
of Title</U>.&nbsp;&nbsp;&nbsp;&nbsp;At Closing, Seller shall convey and transfer to Purchaser all of Seller&#146;s
right, title and interest in and to the Property. Notwithstanding anything contained
herein to the contrary, the Property shall be conveyed subject to the following matters,
which shall be deemed to be &#147;Permitted Exceptions&#148; for purposes hereof: </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 1- TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4.1 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the
rights of tenants under the Leases;</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 1- TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4.2 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the
lien of all ad valorem real estate taxes and assessments not yet due and payable as of
the date of Closing, subject to adjustment as herein provided; and </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 1- TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4.3 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;items
which are or become Permitted Exceptions pursuant to Section 2.3 hereof. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Environmental
Assessment</U>.&nbsp;&nbsp;&nbsp;&nbsp;Purchaser may, at its option, also obtain, at Purchaser&#146;s expense, an
environmental assessment covering the Property (the &#147;Environmental Report&#148;).
Purchaser shall, at any time prior to expiration of the Inspection Period, give written
notice to Seller of any matter disclosed by such Environmental Report which Purchaser
determines to be unacceptable. In the event that Seller fails to cure or correct such
unacceptable environmental condition on or before Closing, Purchaser may (i) terminate
this Agreement, whereupon the Escrow Agent shall promptly return the Earnest Money to
Purchaser, and the parties hereto shall thereafter be relieved of all further liability
and/or obligation hereunder or (ii) withdraw its objection and proceed to Closing
notwithstanding such unacceptable environmental condition. </FONT></P>


<BR>
<BR>
<BR>
<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=1>
4</FONT></P>

<PAGE>



<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No
Change in Status. Seller shall not cause or permit the status of title to, or the
environmental condition of, the Property to be modified in any way subsequent to the date
of this Agreement without the prior written consent of the Purchaser. </FONT></P>

<P ALIGN=CENTER>
<FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE 3<BR>
INSPECTION PERIOD</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Right of
Inspection</U>.&nbsp;&nbsp;&nbsp;&nbsp;During the period beginning upon the
Effective Date and ending at 5:00 p.m. (local time at the Property) on
_______________, 2004 [forty-five (45) days following the date of this
Agreement] (hereinafter referred to as the &#147;Inspection Period&#148;),
Purchaser shall have the right to make a physical inspection of the Property,
including, without limitation, causing the Environmental Report to be issued,
and to examine during Seller&#146;s normal business hours, at such place or
places at the Property, in the offices of the property manager or elsewhere as
the same may be located, any operating files maintained by Seller or its
property manager in connection with the redevelopment, leasing, maintenance
and/or management of the Property, including, without limitation, the Leases,
lease files, Operating Agreements, insurance policies, bills, invoices, receipts
and other general records relating to the income and expenses of the Property,
correspondence, surveys, engineering reports, plans and specifications,
warranties for services and materials provided to the Property, and
environmental audits and similar materials. Any inspections by Purchaser shall
be conducted only during Seller&#146;s normal business hours and upon at least
24 hours prior notice to Seller. Purchaser will use commercially reasonable
efforts to perform its inspections in a manner that does not materially
interfere with Seller&#146;s business operations being conducted upon the
Property. Purchaser shall be entitled to conduct invasive testing on the
Property with Seller&#146;s prior written consent, which consent shall not be
unreasonably withheld, conditioned or delayed. Purchaser agrees to repair any
damage to the Property caused by Purchaser and to indemnify against and hold
Seller harmless from any claim for liabilities, costs, expenses (including
reasonable attorneys&#146; fees actually incurred) damages or injuries arising
out of or resulting from the inspection or testing of the Property by Purchaser
or its agents, and notwithstanding anything to the contrary in this Agreement,
such obligation to indemnify and hold harmless Seller shall survive Closing or
any termination of this Agreement. Purchaser shall maintain public liability and
property damage insurance in the amount of $1,000,000, and automobile liability
insurance in an amount not less than $1,000,000 which insurance coverage shall
name Seller as an additional insured and which insurance coverage shall
otherwise be in form and substance satisfactory to Seller and adequate to insure
against all liability of Purchaser and its consultants, respectively, and each
of its agents, employees or contractors, arising out of the inspections or
testing. All inspections and testing shall occur at reasonable times agreed upon
by Seller and Purchaser and shall be conducted so as not to interfere
unreasonably with use of the Property by Seller or its tenants. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Right
of Termination</U>.&nbsp;&nbsp;&nbsp;&nbsp;Seller agrees that in the event Purchaser determines (such determination
to be made in Purchaser&#146;s sole and absolute discretion) that the Property is not
suitable for its purposes, Purchaser shall have the right to terminate this Agreement by
giving written notice thereof to Seller prior to the expiration of the Inspection Period.
If Purchaser gives such notice of termination within the Inspection Period, this
Agreement shall terminate and the Earnest Money shall be returned to Purchaser. Time is
of the essence with respect to the provisions of this Section 3.2. If Purchaser fails to
give Seller a notice of termination prior to the expiration of the Inspection Period,
Purchaser shall no longer have any right to terminate this Agreement under this Section
3.2, and the Earnest Money shall be non-refundable (except as otherwise provided herein).
Upon any termination of this Agreement by Purchaser, Purchaser shall deliver to Seller
copies of any Environmental Report and any other nonproprietary, nonconfidential reports,
tests, or studies with respect to the Property prepared by or on behalf of Purchaser. </FONT></P>



<BR>
<BR>
<BR>
<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=1>
5</FONT></P>

<PAGE>




<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Seller
Lease</U>.&nbsp;&nbsp;&nbsp;&nbsp;Seller and Purchaser agree to act in good
faith to agree upon the terms and conditions of a triple net lease between
Seller, as tenant, and Purchaser, as landlord, for approximately 101,000 square
feet of space on the Property (the &#147;Seller Lease&#148;), which terms and
conditions will include, but shall not be limited to (i) a lease term of two (2)
years beginning with the date of Closing, (ii) base rent equal to $8.00 per
leasable square foot of space on a triple net basis, with Seller being
responsible for all its proportionate share of operating costs, including,
without limitation, utilities, real estate taxes and insurance and all
maintenance and, repair costs (including elevators) except that Purchaser shall
be responsible for roof repair and maintenance and all other capital repairs or
replacements (including floors, slabs, foundations and structural elements of
the Property), and (iii) an agreement by Purchaser that it will not
intentionally take any action that would materially adversely impact
Seller&#146;s business during the lease term (with the understanding that
Seller, as tenant, is solely responsible for compliance with all laws, rules and
regulations applicable to its business). </FONT></P>

<P ALIGN=CENTER>
<FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE 4<BR>
CLOSING</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Time
and Place</U>.&nbsp;&nbsp;&nbsp;&nbsp;The Closing shall be held at the offices of Gallagher Evelius &amp; Jones LLP,
218 North Charles Street, Suite 400, Baltimore, Maryland 21201, on a date selected by
Purchaser with at least five (5) days prior notice to Seller not later than the thirtieth
(30th) day following the expiration of the Inspection Period. At Closing, Seller and
Purchaser shall perform the obligations set forth in, respectively, Section 4.2 and
Section 4.3. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Seller's
Obligations at Closing</U>.&nbsp;&nbsp;&nbsp;&nbsp;At Closing, Seller shall:</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 1- TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2.1 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;deliver
to Purchaser a duly executed special warranty deed (the &#147;Deed&#148;) in recordable
form, conveying the applicable portion of the Land and Improvements, subject only to the
Permitted Exceptions; </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 1- TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2.2 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;deliver
to Purchaser a duly executed bill of sale conveying the applicable Personal Property
without warranty of title or use and without warranty, expressed or implied, as to
merchantability and fitness for any purpose Purchaser acknowledges that it is accepting
all such Personal Property &#147;AS IS&#148; and &#147;WHERE IS&#148;; </FONT></P>



<BR>
<BR>
<BR>
<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=1>
6</FONT></P>

<PAGE>



<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 1- TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2.3 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;assign
to Purchaser, and Purchaser shall assume, the landlord/lessor interest in and to the
applicable Leases by duly executed assignment and assumption agreement pursuant to which
(i) Seller shall indemnify Purchaser and hold Purchaser harmless from and against any and
all claims pertaining to the Leases arising prior to Closing and (ii) Purchaser shall
indemnify Seller and hold Seller harmless from and against any and all claims pertaining
to the Leases arising from and after the Closing; </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 1- TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2.4 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;assign
to Purchaser, and Purchaser shall assume, Seller&#146;s interest in the applicable
Operating Agreements and the other Intangibles (without any warranty of title or use) by
duly executed assignment and assumption agreement pursuant to which (i) Seller shall
indemnify Purchaser and hold Purchaser harmless from and against any and all claims
pertaining to the Operating Agreements or the other Intangibles arising prior to Closing
and (ii) Purchaser shall indemnify Seller and hold Seller harmless from and against any
and all claims pertaining to the Operating Agreements or the other Intangibles arising
from and after the Closing; </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 1- TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2.5 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;join
with Purchaser to execute a notice in form and content reasonably satisfactory to
Purchaser and Seller which Purchaser shall send to each tenant under each of the Leases
informing such tenant of the sale of the Property and of the assignment to Purchaser of
Seller&#146;s interest in, and obligations under, the Leases (including, if applicable,
Purchaser&#146;s assumption of Seller&#146;s obligations with respect to any security
deposits) and directing that all rent and other sums payable after the Closing under each
such Lease shall be paid as set forth in the notice; </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 1- TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2.6 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;deliver
to Purchaser a certificate, dated as of the date of Closing and executed on behalf of
Seller by a duly authorized officer thereof, stating that the representations and
warranties of Seller contained in this Agreement are true and correct in all material
respects as of the date of the applicable Closing (with appropriate modifications of
those representations and warranties made in Section 5.1 hereof to reflect any material
changes therein including without limitation any changes resulting from actions under
Section 5.4 hereof) or identifying any representation or warranty which is not, or no
longer is, true and correct and explaining the state of facts giving rise to the change (&#147;Seller&#146;s
Closing Certificate&#148;); </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 1- TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2.7 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;deliver
to Purchaser such evidence as Purchaser&#146;s counsel and/or the Title Company may
reasonably require as to the authority of the person or persons executing documents on
behalf of Seller; </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 1- TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2.8 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;deliver
to Purchaser an affidavit duly executed by Seller stating that Seller is not a &#147;foreign
person&#148;as defined in the Federal Foreign Investment in Real Property Tax Act of 1980
and the 1984 Tax Reform Act; </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 1- TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2.9 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;deliver
to Purchaser the applicable Leases, Operating Agreements and licenses and permits, if
any, in the possession of Seller or Seller&#146;s agents, together with such leasing and
property files and records which are material in connection with the continued operation,
leasing and maintenance of the Property; </FONT></P>



<BR>
<BR>
<BR>
<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=1>
7</FONT></P>

<PAGE>




<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 1- TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2.10 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;execute
and deliver the Seller Lease; and</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 1- TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2.11 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;deliver
such additional documents as shall be reasonably required to consummate the transaction
contemplated by this Agreement. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Purchaser's
Obligations at Closing</U>.&nbsp;&nbsp;&nbsp;&nbsp;At Closing, Purchaser shall:</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 1- TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3.1 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;pay
to Seller the full amount of the Purchase Price, as increased or decreased by prorations
and adjustments as herein provided, in immediately available wire transferred funds
pursuant to Section 1.5 above, it being agreed that at Closing the Earnest Money shall be
delivered to Seller and applied towards payment of the Purchase Price; </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 1- TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3.2 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;join
Seller in execution of the instruments described in Subsections 4.2.3, 4.2.4, and 4.2.5
above;</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 1- TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3.3 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;deliver
to Seller such evidence as Seller&#146;s counsel and/or the Title Company may reasonably
require as to the authority of the person or persons executing documents on behalf of
Purchaser; </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 1- TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3.4 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;execute
and deliver the Seller Lease; and</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 1- TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3.5 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;deliver
such additional documents as shall be reasonably required to consummate the transaction
contemplated by this Agreement. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Credits
and Prorations</U>.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 1- TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4.1 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following shall be apportioned with respect to the Property as of 12:01 a.m., on the day
of the applicable Closing, as if Purchaser were vested with title to the Property during
the entire day upon which such Closing occurs: (i) rents, if any, as and when collected
(the term &#147;rents&#148; as used in this Agreement includes all payments due and
payable by tenants under the Leases and shall take into account any concessions relating
to any Lease), (ii) taxes (including personal property taxes on the Personal Property)
and assessments levied against the Property, (iii) payments under the Operating
Agreements, (iv) gas, electricity and other utility charges for which Seller is liable,
if any, such charges to be apportioned at Closing on the basis of the most recent meter
reading occurring prior to Closing, and (v) any other operating expenses or other items
pertaining to the Property which are customarily prorated between a purchaser and a
seller in the area in which the Property is located. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 1- TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4.2 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At
Closing, (i) Seller shall, at Purchaser&#146;s option, either deliver to Purchaser any
security deposits actually held by Seller pursuant to the Leases or credit to the account
of Purchaser the amount of such security deposits (to the extent such security deposits
are not applied against delinquent rents or otherwise applied as contemplated), and (ii)
Purchaser shall credit to the account of Seller all refundable cash or other deposits
posted with utility companies serving the Property, or, at Seller&#146;s option, Seller
shall be entitled to receive and retain such refundable cash and deposits. </FONT></P>


<BR>
<BR>
<BR>
<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=1>
8</FONT></P>

<PAGE>



<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 1- TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4.3 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any
taxes paid at or prior to Closing shall be prorated based upon the amounts actually paid.
If taxes and assessments for the current year have not been paid before Closing, Seller
shall be charged at Closing an amount equal to that portion of such taxes and assessments
which relates to the period before Closing and Purchaser shall pay the taxes and
assessments prior to their becoming delinquent. Any such apportionment made with respect
to a tax year for which the tax rate or assessed valuation, or both, have not yet been
fixed shall be based upon the tax rate and/or assessed valuation last fixed. To the
extent that the actual taxes and assessments for the current year differ from the amount
apportioned at Closing, the parties shall make all necessary adjustments by appropriate
payments between themselves following Closing provided; however, that Seller shall not be
responsible for any increased taxes or assessments resulting from an increase in the
assessed value of the Land or the Improvements first resulting from and after the day of
Closing or otherwise resulting from the sale of the Property. </FONT></P>


<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 1- TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4.4 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Discounts
for the prepayment of any taxes, water rates or sewer rents shall be prorated as of the
day of Closing. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 1- TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4.5 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
to gas, electricity and other utility charges referred to in Subsection 4.4.1(iv) above,
Seller may on notice to Purchaser elect to pay one or more of all of said items accrued
to the date hereinabove fixed for apportionment directly to the person or entity entitled
thereto, and to the extent Seller so elects, such item shall not be apportioned
hereunder, and Seller&#146;s obligation to pay such item directly in such case shall
survive the applicable Closing. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 1- TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4.6 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Personal Property is included in this sale, without further charge, except that Purchaser
shall pay to Seller the amount of any and all sales or similar taxes payable in
connection with the Personal Property and Purchaser shall execute and deliver any tax
returns required of it in connection therewith, said obligations of Purchaser to survive
Closing. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 1- TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4.7 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unpaid
and delinquent rent collected by Seller and Purchaser after the date of Closing shall be
delivered as follows: (i) if Seller collects any unpaid or delinquent rent for the
Property, Seller shall, within fifteen (15) days after the receipt thereof, deliver to
Purchaser any such rent which Purchaser is entitled to hereunder relating to the date of
Closing and any period thereafter, and (ii) if Purchaser collects any unpaid or
delinquent rent from the Property, Purchaser shall, within fifteen (15) days after the
receipt thereof, deliver to Seller any such rent which Seller is entitled to hereunder
relating to the period prior to the date of Closing. Seller and Purchaser agree that
(iii) all rent received by Seller or Purchaser within the first sixty (60) day period
after the date of Closing shall be applied first to delinquent rentals, if any, in the
order of their maturity, and then to current rentals, and (iv) all rent received by
Seller or Purchaser after the first sixty (60) day period after the date of Closing shall
be applied first to current rentals and then to delinquent rentals, if any, in inverse
order of maturity. Purchaser will make a good faith effort after Closing to collect all
rents in the usual course of Purchaser&#146;s operation of the Property, but Purchaser
will not be obligated to institute any lawsuit or other collection procedures to collect
delinquent rents. </FONT></P>


<BR>
<BR>
<BR>
<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=1>
9</FONT></P>

<PAGE>



<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 1- TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4.8 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Either
party shall be entitled to a post-Closing adjustment for any incorrect proration or
adjustment provided written notice thereof is given to the other party within sixty (60)
days of Closing (or such longer period with respect to adjustments not capable of being
made or determined within such sixty (60) day period). </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 1- TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4.9&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The provisions of this Section 4.4 shall survive Closing for a period of sixty
(60) days (or, in the case of adjustments requiring a longer time in order to
make a final determination as described in Section 4.4.8, such longer period of
time). </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Closing Costs</U>.&nbsp;&nbsp;&nbsp;&nbsp;Seller shall pay (i) the fees of
any counsel representing it in connection with this transaction; (ii) one-half
(1/2) of any escrow fee which may be charged by the Escrow Agent or Title
Company; and (iii) one-half (1/2) of all transfer and recordation taxes due and
payable in connection with this transaction. Purchaser shall pay (iv) one-half
(1/2) of all transfer and recordation taxes due and payable in connection with
the transfer of the Property; (v) the fees of any counsel representing Purchaser
in connection with this transaction; (vi) the fee for the title examination and
the Title Commitment and the premium for the Owner&#146;s Policy of Title
Insurance to be issued to Purchaser by the Title Company at Closing; (vii) the
cost of the Survey; (viii) the fees for recording any documents conveying the
Property to Purchaser; and (ix) one-half (1/2) of any escrow fees charged by the
Escrow Agent or Title Company. All other costs and expenses incident to this
transaction and the closing thereof shall be paid by the party incurring same.
</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Conditions Precedent to
Obligation of Purchaser</U>.&nbsp;&nbsp;&nbsp;&nbsp;The obligation of Purchaser
to consummate the transaction hereunder shall be subject to the fulfillment on
or before the date of Closing of all of the following conditions, any or all of
which may be waived by Purchaser in its sole discretion: </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 1- TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6.1 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Seller
shall have delivered to Purchaser all of the items required to be delivered to Purchaser
pursuant to the terms of this Agreement, including but not limited to, those provided for
in Section 4.2. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 1- TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6.2 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
of the representations and warranties of Seller contained in this Agreement shall be true
and correct in all material respects as of the date of Closing (with appropriate
modifications permitted under this Agreement or not materially adverse to Purchaser). </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 1- TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6.3 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Seller
shall have performed and observed, in all material respects, all covenants and agreements
of this Agreement to be performed and observed by Seller as of the date of Closing. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 1- TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6.4 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Seller
and Purchaser shall have entered into the Seller Lease.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In the event any of the
foregoing conditions are not fulfilled or waived by Purchaser by Closing, this
Agreement may, at Purchaser&#146;s option, terminate and the Earnest Money shall
be returned to Purchaser. </FONT></P>


<BR>
<BR>
<BR>
<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=1>
10</FONT></P>

<PAGE>



<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Conditions
Precedent to Obligation of Seller</U>.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The obligation of Seller to consummate the transaction
hereunder shall be subject to the fulfillment on or before the date of Closing of all of
the following conditions, any or all of which may be waived by Seller in its sole
discretion: </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 1- TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7.1 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Seller
shall have received the Purchase Price as adjusted pursuant to and payable in the manner
provided for in this Agreement. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 1- TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7.2 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchasershall have delivered to Seller all of the items required to be delivered to Seller
pursuant to the terms of this Agreement, including but not limited to, those provided for
in Section 4.3. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 1- TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7.3 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
of the representations and warranties of Purchaser contained in this Agreement shall be
true and correct in all material respects as of the date of Closing. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 1- TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7.4 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchaser
shall have performed and observed, in all material respects, all covenants and agreements
of this Agreement to be performed and observed by Purchaser as of the date of Closing. </FONT></P>

<P ALIGN=CENTER>
<FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE 5<BR>
REPRESENTATIONS, WARRANTIES AND COVENANTS</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Representations
 and Warranties of Seller</U>.&nbsp;&nbsp;&nbsp;&nbsp;Seller hereby makes the following  representations  and
warranties to Purchaser as of the Effective Date and as of the date of Closing:</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 1- TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5.1.1
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Organization and
Authority</U>.&nbsp;&nbsp;&nbsp;&nbsp;Seller is validly existing under the laws
of Indiana. Seller has the full right and authority to enter into this Agreement
and to transfer all of the Property to be conveyed by Seller pursuant hereto and
to consummate or cause to be consummated the transactions contemplated herein to
be made by Seller. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 1- TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.2 &nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Pending
Actions</U>.&nbsp;&nbsp;&nbsp;&nbsp;There is no action, suit, arbitration, unsatisfied order or judgment,
governmental investigation or proceeding pending against the Property or the transaction
contemplated by this Agreement, which, if adversely determined, could individually or in
the aggregate have a material adverse effect on title to the Property or any portion
thereof, which could in any material way interfere with the consummation by Seller of the
transaction contemplated by this Agreement or which would impact Seller&#146;s ability to
perform under the Seller Lease. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 1- TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.3
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Leases</U>.&nbsp;&nbsp;&nbsp;&nbsp;Except
as set forth in the Rent Roll, (i) there are no other leases or occupancy
agreements to which Seller is a party affecting the Property, (ii) all Leases
are in full force and effect, and (iii) there exists no default under any Lease.
</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 1- TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.4 &nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>No Violations</U>.&nbsp;&nbsp;&nbsp;&nbsp;Seller has not received prior to the Effective Date any written notification
from any governmental or public authority, nor does Seller otherwise have knowledge, that
the Property is in violation of any applicable fire, health, building, use, occupancy or
zoning laws where such violation remains outstanding and, if unaddressed, would have a
material adverse effect on the use of the Property as currently owned and operated.
Seller has received all permits, approvals and consents necessary to own the Property and
operate its business. Seller has provided to Purchaser during the Inspection Period
copies of all reports and communications from consultants and professionals (i.e.,
architects and engineers) relating to the structural, environmental and operational
condition and status of the Property. </FONT></P>



<BR>
<BR>
<BR>
<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=1>
11</FONT></P>

<PAGE>




<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 1- TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.5 &nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Taxes
and Assessments</U>.&nbsp;&nbsp;&nbsp;&nbsp;Seller has not filed, and has not retained anyone to file, notices of
protests against, or to commence action to review, real property tax assessments against
the Property, which protests or actions are still unresolved. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 1- TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.6 &nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Condemnation</U>.&nbsp;&nbsp;&nbsp;&nbsp;
No condemnation proceedings relating to the Property are pending nor has Seller received
any written notice of any threatened condemnation proceeding. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 1- TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.7 &nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Insurance</U>.&nbsp;&nbsp;&nbsp;&nbsp;
Seller has not received any written notice from any insurance company or board of fire
underwriters of any defects or inadequacies in or on the Property or any part or
component thereof that would materially and adversely affect the insurability of the
Property or cause any material increase in the premiums for insurance for the Property
that have not been cured or repaired. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 1- TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.8 &nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Environmental Matters</U>.&nbsp;&nbsp;&nbsp;&nbsp;To the best of Seller&#146;s knowledge, the Property is in compliance in all
material respects with all applicable federal, State, and local laws, ordinances and
regulations relating to air, water or noise pollution, or the production, storage,
labeling or disposition or release of Hazardous Materials (as hereinafter defined) or
Solid Wastes (as hereinafter defined) or the health, safety or environmental conditions
on, under or about the Property, including, without limitation, soil and groundwater
conditions (collectively, &#147;<B>Environmental Laws</B>&#148;). No Hazardous Materials or
Solid Wastes have been or are currently on, under or about the Property. The term &#147;<B>Hazardous
Materials</B>&#148; as used in this Agreement shall mean any and all substances subject to
governmental regulation of any type, or which could subject Purchaser to liability of any
type, including, but not limited to, &#147;hazardous substances,&#148; &#147;hazardous
waste,&#148; &#147;hazardous materials,&#148; &#147;pollutants,&#148;&#147;contaminants&#148; or
&#147;toxic substances&#148; in the Comprehensive Environmental Response, Compensation
and Liability Act of 1980, as amended, 42 U.S.C. Section 9601, et seq.; the Hazardous
Materials Transportation Act, 49 U.S.C. Section 1801 et seq.; the Resource Conservation
and Recovery act, 42 U.S.C. Section 6901, <U>et seq</U>.; &#147;hazardous chemicals&#148; as
defined under OSHA&#146;s hazard communication standard, 29 C.F.R. &sect;1910.1200; and
those substances defined as &#147;hazardous wastes&#148; or as &#147;hazardous substances&#148; under
the laws of the State of Maryland; and in the regulations adopted, published and/or
promulgated pursuant to such laws. Hazardous Materials does not include materials
ordinarily and customarily used, stores, present or handled in the regular operation of
the multi-family apartment complexes, including but not limited to maintenance and
custodial supplies all in amounts permitted by applicable law. The term &#147;<B>Solid Wastes</B>&#148; as
used in the Agreement shall mean any and all substances subject to governmental
regulation of any type or which could subject Purchaser or the Partnership to liability
of any type, including, but not limited to, &#147;solid wastes&#148; as defined in the
Resource conservation and Recovery Act or under the laws of the State of Maryland. Seller
has not received any written notice from any governmental agency or private or public
entity advising that Seller is responsible for or potentially responsible for response
costs or response actions with respect to a release, a threatened release or cleanup of
substances produced by, or resulting from, any business, commercial or industrial
activities, operations or processes related to the Property or the Seller or any of their
respective predecessors. </FONT></P>



<BR>
<BR>
<BR>
<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=1>
12</FONT></P>

<PAGE>




<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 1- TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.9 &nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Collective Bargaining Agreements; Pension Plans</U>.&nbsp;&nbsp;&nbsp;&nbsp;No collective bargaining agreements between Seller
and any labor organization apply to the operation and/or management of the Property, and
no pension, retirement, profit-sharing or similar plan or fund, ERISA qualified or
otherwise, has been established by Seller in connection with the Property and no
liabilities for pension or retirement payments exist in connection therewith. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 1- TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.10 &nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>No
Default</U>.&nbsp;&nbsp;&nbsp;&nbsp;Seller is not in default of any material
covenant, condition, restriction, right of way, easement, mortgage, deed of
trust, lien or license affecting the Property that is to be complied with by
Seller. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 1- TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.11 &nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>No Options or Rights of
Purchase</U>.&nbsp;&nbsp;&nbsp;&nbsp;No person other than Purchaser has an
option or right to purchase any or all of the Property. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 1- TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.12 &nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>No
Bankruptcy</U>.&nbsp;&nbsp;&nbsp;&nbsp;No petition in bankruptcy (voluntary or
involuntary) or for the appointment of a receiver or trustee has been filed by
or against Seller or is contemplated by Seller. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 1- TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.13 &nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>No Other
Violations</U>.&nbsp;&nbsp;&nbsp;&nbsp;To the best of Seller&#146;s knowledge,
this Agreement does not violate the terms of any other contract or agreement to
which Seller is a party. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 1- TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.14 &nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Seller&#146;s
Representative</U>.&nbsp;&nbsp;&nbsp;&nbsp;As used herein, the terms &#147;to
the best of Seller&#146;s knowledge&#148; and &#147;Seller&#146;s
knowledge&#148; shall be limited to the actual knowledge of Peter Kissinger,
Michael Silvon, and Michael Cox. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 &nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;<U>Survival
of Seller&#146;s Representations and Warranties</U>.&nbsp;&nbsp;&nbsp;&nbsp;The representations and warranties of
Seller set forth in Section 5.1 as updated by Seller&#146;s Closing Certificate to be
delivered to Purchaser at Closing in accordance with Subsection 4.2.6 hereof, shall
survive the Closing for a period of one (1) year. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;<U>Operating Covenant of
Seller</U>.&nbsp;&nbsp;&nbsp;&nbsp;Seller hereby covenants with Purchaser to use
reasonable efforts to operate and maintain the Property in a manner generally
consistent with the manner in which Seller has operated and maintained the
Property or caused the Property to be operated and maintained until the Closing
or earlier termination of this Agreement, including, without limitation, with
respect to Hazardous Materials. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;<U>Representations
and Warranties of Purchaser</U>.&nbsp;&nbsp;&nbsp;&nbsp;Purchaser hereby represents and warrants to Seller:</FONT></P>


<BR>
<BR>
<BR>
<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=1>
13</FONT></P>

<PAGE>




<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 1- TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4.1&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchaser
has the full right, power and authority to purchase the Property as provided in this
Agreement and to carry out Purchaser&#146;s obligations hereunder, and all requisite
action necessary to authorize Purchaser to enter into this Agreement and to carry out its
obligations hereunder have been, or by the Closing will have been, taken. The person
signing this Agreement on behalf of Purchaser is authorized to do so. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 1- TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4.2 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There
is no action, suit, arbitration, unsatisfied order or judgment, government investigation
or proceeding pending against Purchaser which, if adversely determined, could
individually or in the aggregate materially interfere with the consummation of the
transaction contemplated by this Agreement. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 1- TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.4.3 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchaser
has not established any pension plan for employees which would cause Purchaser to be
subject to the Employee Retirement Income Security Act of 1974, as amended. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.5
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Survival of Purchaser&#146;s
Representations and Warranties</U>.&nbsp;&nbsp;&nbsp;&nbsp;The representation
and warranties of Purchaser set forth in Subsection 5.5 shall survive Closing
and shall be a continuing representation and warranty without limitation. All
other representations and warranties of Purchaser shall survive Closing for a
period of one (1) year. </FONT></P>

<P ALIGN=CENTER>
<FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE 6<BR>
DEFAULT</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Default
by Purchaser</U>.&nbsp;&nbsp;&nbsp;&nbsp;If Purchaser fails to perform any of its obligations under this Agreement
and such default continues for a period of ten (10) days after written notice from
Purchaser (provided, however, that in no circumstance shall Purchaser be entitled to
notice or any cure period in connection with Purchaser&#146;s failure to proceed to
Closing under this Agreement) for any reason other than Seller&#146;s default or the
permitted termination of this Agreement by either Seller or Purchaser as herein expressly
provided, Seller shall be entitled, as its sole remedy, to terminate this Agreement and
receive the Earnest Money as liquidated damages for the breach of this Agreement, it
being agreed between the parties hereto that the actual damages to Seller in the event of
such breach are impractical to ascertain and the amount of the Earnest Money is a
reasonable estimate thereof, </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Default
by Seller</U>.&nbsp;&nbsp;&nbsp;&nbsp;In the event that Seller fails to perform any of its obligations under this
Agreement and such default continues for a period of ten (10) days after written notice
from Purchaser (provided, however, that in no circumstance shall Seller be entitled to
notice or any cure period in connection with Seller&#146;s failure to proceed to Closing
under this Agreement), Purchaser shall be entitled, as its sole remedy, either (a) to
receive the return of the Earnest Money, which return shall operate to terminate this
Agreement and release Seller and Purchaser from any and all liability and/or obligation
hereunder, or (b) to enforce specific performance of Seller&#146;s obligation to execute
the documents required to convey the Property to Purchaser, so long as a suit for
specific performance is commenced by Purchaser no more than one hundred eighty (180) days
after the scheduled date of Closing, it being understood and agreed that the remedy of
specific performance shall not be available to enforce any other obligation of Seller
hereunder, in which case Purchaser shall be entitled to recover its reasonable actual out
of pocket costs and expenses related to Sellers default, not to exceed $100,000. No
provision of this Agreement, including, without limitation, this Section 6.2, shall be
deemed to modify or limit Seller&#146;s indemnity obligations or liability set forth
herein, including, as set forth in Section 9.1. </FONT></P>



<BR>
<BR>
<BR>
<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=1>
14</FONT></P>

<PAGE>




<P ALIGN=CENTER>
<FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE 7<BR>
RISK OF LOSS</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Minor
Damage</U>.&nbsp;&nbsp;&nbsp;&nbsp;In the event of loss or damage to the Property or any portion thereof which is
not a Major Loss (as hereinafter defined), this Agreement shall remain in full force and
effect provided Seller performs any necessary repairs or, at Seller&#146;s option,
assigns to Purchaser all of Seller&#146;s right, title and interest to any claims and
proceeds Seller may have with respect to any casualty insurance policies or condemnation
awards relating to the premises in question. In the event that Seller elects to perform
repairs upon the Property, Seller shall use reasonable efforts to complete such repairs
promptly and the date of Closing shall be extended a reasonable time in order to allow
for the completion of such repairs. If Seller elects to assign a casualty claim to
Purchaser, the Purchase Price shall be reduced by an amount equal to the deductible
amount under Seller&#146;s insurance policy, if any, attributable to such claim. Upon
Closing, full risk of loss with respect to the Property shall pass to Purchaser. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Major
Damage</U>.&nbsp;&nbsp;&nbsp;&nbsp;In the event of a Major Loss, either Seller or Purchaser may terminate this
Agreement by written notice to the other party, in which event the Earnest Money shall be
returned to Purchaser. If neither Seller nor Purchaser elects to terminate this Agreement
within ten (10) days after Seller sends Purchaser written notice of the occurrence of the
Major Loss, then Seller and Purchaser shall be deemed to have elected to proceed with
Closing, in which event Seller shall, at Seller&#146;s option, either (i) perform any
necessary repairs, or (ii) assign to Purchaser all of Seller&#146;s right, title and
interest to any claims and proceeds Seller may have with respect to any casualty
insurance policies or condemnation awards relating to the premises in question. In the
event that Seller elects to perform repairs upon the Property, Seller shall use
reasonable efforts to complete such repairs promptly and the date of Closing shall be
extended a reasonable time in order to allow for the completion of such repairs. If
Seller elects to assign a casualty claim to Purchaser, the Purchase Price shall be
reduced by an amount equal to the deductible amount under Seller&#146;s insurance policy.
Upon Closing, full risk of loss with respect to the Property shall pass to Purchaser. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Definition
of &#147;Major Loss&#148;</U>.&nbsp;&nbsp;&nbsp;&nbsp;For purposes of Sections 7.1 and 7.2, &#147;Major Loss&#148; shall
mean: (i) loss or damage to the Property or any portion thereof such that the cost of
repairing or restoring the premises in question to a condition substantially identical to
that of the premises in question prior to the event of damage would be, in the opinion of
an architect selected by Seller and reasonably approved by Purchaser, equal to or greater
than FIVE HUNDRED THOUSAND DOLLARS ($500,000), and (ii) any loss due to a condemnation
which permanently and materially impairs the current use of the Property. If Purchaser
does not give notice to Seller of Purchaser&#146;s reasons for disapproving an architect
within five (5) business days after receipt of notice of the proposed architect,
Purchaser shall be deemed to have approved the architect selected by Seller. </FONT></P>



<BR>
<BR>
<BR>
<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=1>
15</FONT></P>

<PAGE>




<P ALIGN=CENTER>
<FONT FACE="Times New Roman, Times, Serif" SIZE=2>
ARTICLE 8<BR>
COMMISSIONS</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Brokerage
Commissions</U>.&nbsp;&nbsp;&nbsp;&nbsp;Seller shall pay a broker fee to CB Richard Ellis in connection with the
purchase and sale of the Property and shall indemnify and hold Purchaser harmless from
and against any and all claims related thereto. Each party agrees that should any claim
be made for brokerage commissions or finder&#146;s fees by any broker or finder by,
through or on account of any acts of said party or its representatives, said party will
indemnify and hold the other party free and harmless from and against any and all loss,
liability, cost, damage and expense in connection therewith. The provisions of this
paragraph shall survive Closing. </FONT></P>

<P ALIGN=CENTER>
<FONT FACE="Times New Roman, Times, Serif" SIZE=2>ARTICLE 9<BR>
MISCELLANEOUS</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Indemnification</U>.
Seller shall indemnify, defend Purchaser, its successors, assigns, members, agents and
employees (the &#147;Indemnified Parties&#148;) (with counsel acceptable to Purchaser)
harmless from and against any and all liabilities, damages, losses, claims, demands,
judgments, fines, penalties, settlement amounts, payments of amounts demanded, costs and
expenses (including, without limitation, reasonable attorneys&#146; fees and litigation
costs) and claims which the Indemnified Parties may incur, including, but not limited to,
in connection with any proceeding arising out of or resulting from (i) any claims due to
or arising out of death or injury to persons, or damage to the property, which were
sustained prior to the Closing as a result of, or alleged to have been sustained prior to
the Closing as a result of, the operation, use, condition and/or upkeep of the Property
prior to the Closing; (ii) liability for federal, state or local income taxes, payroll
taxes and property taxes attributable to periods prior to the date of Closing; (iii) any
loss, liability, claim or action to which Purchaser is subjected as a result of any and
all business done, transactions entered into, or other actions taken by Seller, its
agents, employees and contractors; and (iv) any breach by Seller of any representation,
warranty, or covenant made by Seller in this Agreement. The foregoing indemnity shall
survive the Closing for a period of two (2) years. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Public
Disclosure</U>.&nbsp;&nbsp;&nbsp;&nbsp;Prior to and after Closing, any release to the public of information with
respect to the sale contemplated herein or any matters set forth in this Agreement will
be made only in the form approved by Purchaser and Seller and their respective counsel. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Assignment</U>.
&nbsp;&nbsp;&nbsp;&nbsp;Seller may not assign its rights under this Agreement without first obtaining Purchaser&#146;s
written approval, which approval may be given or withheld in Purchaser&#146;s sole
discretion. The assignment of any of Seller&#146;s rights under this Agreement without
Purchaser&#146;s prior written consent or any transfer, directly or indirectly, of any
stock, partnership interest or other ownership interest in Seller without Purchaser&#146;s
written approval, which consent or approval, as the case may be, may be given or withheld
in Purchaser&#146;s sole discretion, shall constitute a default by Seller under this
Agreement. </FONT></P>


<BR>
<BR>
<BR>
<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=1>
16</FONT></P>

<PAGE>




<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 1- TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3.2
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchaser
shall give Seller prior written notice of any proposed assignment of this Agreement. Such
notice shall identify the proposed assignee or transferee and the constituent individuals
and/or entities thereof and such further information with respect to the proposed
assignee or transferee and the constituent individuals and/or entities thereof, as Seller
may request. Purchaser&#146;s assignment or transfer of this Agreement shall not relieve
Purchaser of its obligations under this Agreement. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.4 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Notices</U>.
Any notice pursuant to this Agreement shall be given in writing by (i) personal delivery,
or (ii) reputable overnight delivery service with proof of delivery, or (iii) United
States Mail, postage prepaid, registered or certified mail, return receipt requested, or
(iv) legible facsimile transmission sent to the intended addressee at the address set
forth below, or to such other address or to the attention of such other person as the
addressee shall have designated by written notice sent in accordance herewith, and shall
be deemed to have been given either at the time of personal delivery, or, in the case of
expedited delivery service or mail, as of the date of first attempted delivery at the
address and in the manner provided herein, or, in the case of facsimile transmission, as
of the date of the facsimile transmission provided that an original of such facsimile is
also sent to the intended addressee by means described in clauses (i), (ii) or (iii)
above. Unless changed in accordance with the preceding sentence, the addresses for
notices given pursuant to this Agreement shall be as follows: </FONT></P>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<U>If to Seller</U>:<BR>
<BR>
Bioanalytical Systems, Inc.<BR>
300 W. Fayette Street<BR>
Baltimore, Maryland 21201<BR>
Fax:&nbsp;&nbsp;(765) 497-1102<BR>
<BR>
With a copy to:<BR>
<BR>
Ice Miller<BR>
One American Square<BR>
Box 82001<BR>
Indianapolis, IN 46282<BR>
Attention:&nbsp;&nbsp;Stephen Hackman, Esq.<BR>
Fax:&nbsp;&nbsp;(317) 592-4666<BR>
<BR>
<U>If to Purchaser</U>:<BR>
<BR>
The Kevin F. Donohoe Company, Inc.<BR>
The Curtis Center, Suite 700<BR>
Independence Square West<BR>
Philadelphia, Pennsylvania 19106<BR>
Fax:&nbsp;&nbsp;(215) 440-4010<BR>
<BR>
With a copy to:<BR>
<BR>
Gallagher Evelius &amp; Jones LLP<BR>
218 N. Charles Street<BR>
Suite 400<BR>
Baltimore, Maryland 21201<BR>
Attention:&nbsp;&nbsp;Mark P. Keener, Esq.<BR>
Fax:&nbsp;&nbsp;(410) 468-2786
</FONT></P>



<BR>
<BR>
<BR>
<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=1>
17</FONT></P>

<PAGE>




<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Modifications</U>.&nbsp;&nbsp;&nbsp;&nbsp;
This Agreement cannot be changed orally, and no executory agreement shall be effective to
waive, change, modify or discharge it in whole or in part unless such executory agreement
is in writing and is signed by the parties against whom enforcement of any waiver,
change, modification or discharge is sought. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.6 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Calculation
of Time Periods</U>.&nbsp;&nbsp;&nbsp;&nbsp;Unless otherwise specified, in computing any period of time described in
this Agreement, the day of the act or event after which the designated period of time
begins to run is not to be included and the last day of the period so computed is to be
included, unless such last day is a Saturday, Sunday or legal holiday under the laws of
the State in which the Property is located, in which event the period shall run until the
end of the next day which is neither a Saturday, Sunday or legal holiday. The final day
of any such period shall be deemed to end at 5 p.m., local time. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.7&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Successors
and Assigns</U>.&nbsp;&nbsp;&nbsp;&nbsp;The terms and provisions of this Agreement are to apply to and bind the
permitted successors and assigns of the parties hereto. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.8&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Entire
Agreement</U>.&nbsp;&nbsp;&nbsp;&nbsp;This Agreement, including the Exhibits, contains the entire agreement between
the parties pertaining to the subject matter hereof and fully supersedes all prior
written or oral agreements and understandings between the parties pertaining to such
subject matter. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.9&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Further
Assurances</U>.&nbsp;&nbsp;&nbsp;&nbsp;Each party agrees that it will without further consideration execute and
deliver such other documents and take such other action, whether prior or subsequent to
Closing, as may be reasonably requested by the other party to consummate more effectively
the purposes or subject matter of this Agreement. Without limiting the generality of the
foregoing, Purchaser shall, if requested by Seller, execute acknowledgments of receipt
with respect to any materials delivered by Seller to Purchaser with respect to the
Property. The provisions of this Section 10.11 shall survive Closing. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.10&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Counterparts</U>.&nbsp;&nbsp;&nbsp;&nbsp;
This Agreement may be executed in counterparts, and all such executed counterparts shall
constitute the same agreement. It shall be necessary to account for only one such
counterpart in proving this Agreement. </FONT></P>


<BR>
<BR>
<BR>
<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=1>
18</FONT></P>

<PAGE>




<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.11&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Severability</U>.&nbsp;&nbsp;&nbsp;&nbsp;
If any provision of this Agreement is determined by a court of competent jurisdiction to
be invalid or unenforceable, the remainder of this Agreement shall nonetheless remain in
full force and effect. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.12&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Applicable
Law</U>.&nbsp;&nbsp;&nbsp;&nbsp;This Agreement is performable in the state in which the Property is located and
shall in all respects be governed by, and construed in accordance with, the substantive
federal laws of the United States and the laws of such state. Seller and Purchaser hereby
irrevocably submit to the jurisdiction of any state or federal court sitting in the state
in which the Property is located in any action or proceeding arising out of or relating
to this Agreement and hereby irrevocably agree that all claims in respect of such action
or proceeding shall be heard and determined in a state or federal court sitting in the
state in which the Property is located. Purchaser and Seller agree that the provisions of
this Section 10.14 shall survive the Closing of the transaction contemplated by this
Agreement. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.13&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>No
Third Party Beneficiary</U>.&nbsp;&nbsp;&nbsp;&nbsp;The provisions of this Agreement and of the documents to be
executed and delivered at Closing are and will be for the benefit of Seller and Purchaser
only and are not for the benefit of any third party, and accordingly, no third party
shall have the right to enforce the provisions of this Agreement or of the documents to
be executed and delivered at Closing. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.14&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Exhibits
and Schedules</U>.&nbsp;&nbsp;&nbsp;&nbsp;The following schedules or exhibits attached hereto shall be deemed to be
an integral part of this Agreement: </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
     <P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Exhibit A</U> &#151; Legal Description of the Land</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
     <P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Exhibit B</U> &#151; Rent Roll</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
     <P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
          &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
          <U>Exhibit C</U> &#151; Operating Agreements Schedule</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.15&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Captions</U>.
The section headings appearing in this Agreement are for convenience of reference only
and are not intended, to any extent and for any purpose, to limit or define the text of
any section or any subsection hereof. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.16&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Construction</U>.
The parties acknowledge that the parties and their counsel have reviewed and revised this
Agreement and that the normal rule of construction to the effect that any ambiguities are
to be resolved against the drafting party shall not be employed in the interpretation of
this Agreement or any exhibits or amendments hereto. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.17&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Termination
of Agreement</U>.&nbsp;&nbsp;&nbsp;&nbsp;It is understood and agreed that if either Purchaser or Seller terminates
this Agreement pursuant to a right of termination granted hereunder, such termination
shall operate to relieve Seller and Purchaser from all obligations under this Agreement,
except for such obligations as are specifically stated herein to survive the termination
of this Agreement. </FONT></P>



<BR>
<BR>
<BR>
<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=1>
19</FONT></P>

<PAGE>



<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.18&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Survival</U>.&nbsp;&nbsp;&nbsp;&nbsp;
The provisions of this Article 10 and any other provisions of this Agreement which by
their terms are intended to be performed or be applicable after Closing shall survive
Closing or any termination of this Agreement prior thereto and shall not be merged into
the execution and delivery of the Deed. The foregoing is in addition to and not in
exclusion of any survival provisions elsewhere set forth in this Agreement. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.19&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>No
Recordation</U>.&nbsp;&nbsp;&nbsp;&nbsp;Neither this Agreement nor any memorandum of the terms hereof shall be
recorded or otherwise placed of public record and any breach of this covenant shall,
unless the party not placing same of record is otherwise in default hereunder, entitle
the party not placing same of record to pursue its rights and remedies under Article 6. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.20&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Confidentiality</U>.&nbsp;&nbsp;&nbsp;&nbsp;
All information (collectively, &#147;Inspection Material&#148;) acquired by Purchaser or
any of its Representatives (as hereinafter defined) with respect to the Property, whether
delivered by Seller or any of its Representatives or obtained by Purchaser as a result of
its inspection of the Property, examination of Seller&#146;s files or otherwise shall be
kept in confidence prior to Closing and shall not be disclosed prior to Closing to any
individual or entity other than those Representatives of Purchaser who need to know the
information for the purpose of assisting Purchaser in making a determination as to
whether the Property is suitable for Purchaser&#146;s purpose. As used herein, &#147;Representative&#148; shall
mean any employee, officer, director, shareholder, owner, affiliate, agent or
representative of a party as well as Purchaser&#146;s investors, potential investors,
lenders, potential lenders, consultants and attorneys for Purchaser and/or any and all of
the foregoing. In the event of a breach or threatened breach by Purchaser or its
Representatives of this Section 9.20, Purchaser acknowledges and agrees that such action
will cause irreparable harm to Seller for which any remedy at law will be inadequate, and
Seller shall be entitled to an injunction restraining Purchaser or its Representatives
from disclosing, in whole or in part, any Inspection Material. The provisions of this
Section shall not survive the Closing, but shall continue in full force and effect
notwithstanding the prior termination of this Agreement pursuant to any right of
termination granted herein or otherwise. </FONT></P>

<P ALIGN=CENTER>
<FONT FACE="Times New Roman, Times, Serif" SIZE=2>
[Signatures follow on next page]</FONT></P>


<BR>
<BR>
<BR>
<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=1>
20</FONT></P>

<PAGE>




<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Default" -->
<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF, the parties
hereto have duly executed this Agreement as of the Effective Date. </FONT></P>


<!-- MARKER FORMAT-SHEET="Signature Block" FSL="Workstation" -->
<TABLE WIDTH=100% CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=60%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;</FONT></TD>
<TD WIDTH=40%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<B>SELLER:</B><BR>
<BR>
PKLB LIMITED PARTNERSHIP<BR>
<BR>
By:&nbsp;&nbsp;BASi MARYLAND, INC., General Partner<BR>
<BR>
<BR>
By:&nbsp;&nbsp;/s/&nbsp;&nbsp;Michael P. Silvon, Ph.D.<hR>
Name:&nbsp;&nbsp;Michael P. Silvon, Ph.D.<BR>
Title:&nbsp;&nbsp;Secretary<BR>
<BR>
<BR>
<BR>
<B>PURCHASER:</B><BR>
<BR>
THE KEVIN F. DONOHOE COMPANY, INC.<BR>
<BR>
<BR>
By:&nbsp;&nbsp;/s/&nbsp;&nbsp;Henry B. Glover, Jr.<HR>
Name:&nbsp;&nbsp;Henry B. Glover, Jr.<BR>
Title:&nbsp;&nbsp;Vice President</font></TD>
</TR>
</TABLE>
<BR>





<BR>
<BR>
<BR>
<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=1>
21</FONT></P>


</BODY>
</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.2
<SEQUENCE>3
<FILENAME>firstamendpurcandsale.htm
<DESCRIPTION>FIRST AMENDMENT TO PURC. & SALE AGREE.
<TEXT>


<HTML>
<HEAD>
<TITLE>First Amendment to Purchase and Sale Agreement</TITLE>
</HEAD>
<BODY>



<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Workstation" -->
<A NAME=A001></A>
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<U><B>FIRST AMENDMENT TO<BR>
PURCHASE AND SALE AGREEMENT<BR>
(300-306 W. Fayette Street)</B></U></FONT></H1>
<BR>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIS FIRST AMENDMENT TO PURCHASE
AND SALE AGREEMENT (this &#147;First Amendment&#148;) is made, and shall be
effective for all purposes, as of September 7, 2004 by and between PKLB Limited
Partnership, a Maryland limited partnership (&#147;Seller&#148;), and The Kevin
F. Donohoe Company, a Pennsylvania corporation (&#147;Purchaser&#148;).
</FONT></P>

<!-- MARKER FORMAT-SHEET="Head Sub 2 Left-TNR" FSL="Workstation" -->
<A NAME=A004></A>
<P ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<B><U>RECITALS:</U></B></FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;R-1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Seller and Purchaser entered into a Purchase and Sale Agreement dated as of July
26, 2004 (the &#147;Original Agreement&#148;). Unless otherwise provided in this
First Amendment, all capitalized terms shall have the same meaning as defined in
the Original Agreement.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;R-2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Seller and Purchaser desire to amend the Original Agreement as hereinafter set
forth.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN
CONSIDERATION of the mutual covenants and agreement contained in the Original Agreement
and this First Amendment, and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, Purchaser and Seller hereby covenant and
agree as follows: </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Incorporation of Recitals.</U>&nbsp;&nbsp;&nbsp;&nbsp;The foregoing Recitals are incorporated in
this First Amendment and made a part hereof by this reference to the same extent
as if set forth herein in full.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Amendment of Original Agreement</U>.&nbsp;&nbsp;&nbsp;&nbsp;The Original Agreement is hereby
modified to extend the time and date of expiration of the Inspection Period to
5:00 PM (E.S.T.) on September 20, 2004.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Ratification of Agreement</U>.&nbsp;&nbsp;&nbsp;&nbsp;Except as set forth in
this First Amendment, all the terms and conditions contained in the Original
Agreement are hereby ratified and shall remain in full force and effect. In the
event that any of the terms, conditions and provisions of this First Amendment
shall conflict with any of the terms, conditions and provisions of the Original
Agreement, then, and in such event, the terms, conditions and provisions of this
First Amendment shall prevail and be controlling.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Effective Date of Amendment.</U>&nbsp;&nbsp;&nbsp;&nbsp;The effective date of this First Amendment
shall be September 7, 2004.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Default" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Counterparts</U>.&nbsp;&nbsp;&nbsp;&nbsp;This First Amendment may be executed in any number of
counterparts, each of which shall be deemed an original, and all of which, when
taken together, shall be deemed to be a single instrument.</FONT></P>


<PAGE>





<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Default" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF, and
intending to be legally bound, the undersigned have duly executed this First
Amendment under seal. </FONT></P>


<!-- MARKER FORMAT-SHEET="Signature Block" FSL="Workstation" -->
<TABLE WIDTH=100% CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=60%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
WITNESS/ATTEST:<BR>
<BR>
<BR>
<BR>
<BR>
<BR>
<BR>
<BR>
<BR>
<hR width=250 align=left>
<BR>
<BR>
<BR>
<BR>
<BR>
<BR>
<BR>
<BR>
<BR>
<BR>
<BR>
<BR>
<BR>
<BR>
<BR>
<hR width=250 align=left></FONT></TD>

<TD WIDTH=40%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<B>PURCHASER:</B><BR>
<BR>
THE KEVIN F. DONAHOE COMPANY, INC.<BR>
<BR>
<BR>
<BR>
By:&nbsp;&nbsp;<hR>
Name:<hR>
Title:<hR>
<BR>
<BR>
<BR>
<B>SELLER:</B><BR>
<BR>
PKLB LIMITED PARTNERSHIP<BR>
<BR>
By:&nbsp;&nbsp;BASi Maryland, Inc., General Partner<BR>
<BR>
<BR>
By:<HR>
Name:<HR>
Title:<HR>
</font>
</TD>
</TR>
</TABLE>
<BR>


</BODY>
</HTML>


</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.3
<SEQUENCE>4
<FILENAME>secondamendment.htm
<DESCRIPTION>SECOND AMENDMENT TO PURC. & SALE AGREE.
<TEXT>


<HTML>
<HEAD>
<TITLE>Second Amendment to Purchase and Sale Agreement</TITLE>
</HEAD>
<BODY>


<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Workstation" -->
<A NAME=A001></A>
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<U>SECOND AMENDMENT TO<BR>
PURCHASE AND SALE AGREEMENT<BR>
(300 W. Fayette Street)</U></FONT></H1>
<BR>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIS SECOND AMENDMENT TO
PURCHASE AND SALE AGREEMENT (this &#147;First Amendment&#148;) is made, and
shall be effective for all purposes, as of November ____, 2004 by and between
PKLB Limited Partnership, a Maryland limited partnership having BASi Maryland,
Inc., a Maryland corporation as its general partner (&#147;Seller&#148;), and
The Kevin F. Donohoe Company, Inc., a Pennsylvania corporation
(&#147;Purchaser&#148;). </FONT></P>

<P ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<U><B>RECITALS:</B></U></FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;R-1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Seller and Purchaser entered into a Purchase and Sale Agreement dated as of
November 11, 2004 (the &#147;Original Agreement&#148;) which was supplemented by
a First Amendment to Purchase and Sale Agreement (the &#147;First
Amendment&#148;) dated as of November 23, 2004. The Original Agreement and the
First Amendment are hereinafter collectively referred to as the Agreement.
Unless otherwise provided in this Second Amendment, all capitalized terms shall
have the same meaning as defined in the Original Agreement. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;R-2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Seller and Purchaser desire to amend the Agreement as hereinafter set forth. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN
CONSIDERATION of the mutual covenants and agreement contained in the Agreement
and this Second Amendment, and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, Purchaser and Seller
hereby covenant and agree as follows: </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Incorporation of Recitals.</U>&nbsp;&nbsp;&nbsp;&nbsp;The foregoing Recitals are incorporated in
this Second Amendment and made a part hereof by this reference to the same
extent as if set forth herein in full. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Amendment of Original Agreement</U>.&nbsp;&nbsp;&nbsp;&nbsp;The Agreement is hereby modified to make
the Effective Date as defined in the first paragraph December 3, 2004. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Ratification of Agreement</U>.&nbsp;&nbsp;&nbsp;&nbsp;Except as set forth in this Second Amendment,
all the terms and conditions contained in the Agreement are hereby ratified and
shall remain in full force and effect. In the event that any of the terms,
conditions and provisions of this Second Amendment shall conflict with any of
the terms, conditions and provisions of the Agreement, then, and in such event,
the terms, conditions and provisions of this Second Amendment shall prevail and
be controlling. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Counterparts</U>.&nbsp;&nbsp;&nbsp;&nbsp;This Second Amendment may be executed in any number of
counterparts, each of which shall be deemed an original, and all of which, when
taken together, shall be deemed to be a single instrument. </FONT></P>


<BR>
<BR>
<BR>
<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=1>
</FONT></P>

<PAGE>




<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Default" -->
<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN
WITNESS WHEREOF, and intending to be legally bound, the undersigned have duly executed
this Second Amendment under seal. </FONT></P>


<!-- MARKER FORMAT-SHEET="Signature Block" FSL="Workstation" -->
<TABLE WIDTH=100% CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=60%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
WITNESS/ATTEST:<BR>
<BR>
<BR>
<BR>
<BR>
<BR>
<BR>
<BR>
<HR ALIGN=LEFT WIDTH=250>
<BR>
<BR>
<BR>
<BR>
<BR>
<BR>
<BR>
<BR>
<BR>
<BR>
<BR>
<BR>
<BR>
<HR ALIGN=LEFT WIDTH=250>
</FONT></TD>
<TD WIDTH=40%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<B>SELLER:</B><BR>
<BR>
PKLB LIMITED PARTNERSHIP<BR>
<BR>
By:&nbsp;&nbsp;BASi Maryland, Inc., its general partner<BR>
<BR>
<BR>
By:<HR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name:<HR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title:<HR>
<BR>
<BR>

<B>PURCHASER:</B><BR>
<BR>
THE KEVIN F. DONAHOE COMPANY, INC.<BR>
<BR>
<BR>
<BR>
By:<HR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Name:<HR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Title:<HR>
</font></TD>
</TR>
</TABLE>
<BR>


<BR>
<BR>
<BR>
<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=1>
2</FONT></P>





</BODY>
</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.4
<SEQUENCE>5
<FILENAME>officelease.htm
<DESCRIPTION>OFFICE LEASE
<TEXT>
<HTML>
<HEAD>
<TITLE>Office Lease - Exhibit 10.4</TITLE>
</HEAD>
<BODY>

<BR>
<BR>
<BR>
<BR>
<BR>
<BR>
<BR>
<BR>
<BR>
<BR>

<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
OFFICE LEASE<BR>
<BR>
by and between<BR>
<BR>
<BR>
<BR>
300 W. FAYETTE STREET, LLC<BR>
<BR>
(Landlord)<BR>
<BR>
<BR>
<BR>
and<BR>
<BR>
<BR>
<BR>
BASI MARYLAND, INC.<BR>
<BR>
(Tenant)<BR>
</FONT></P>


<PAGE>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<U>TABLE OF CONTENTS</U></FONT></P>
<BR>


<TABLE CELLPADDING=3 CELLSPACING=0 BORDER=0 ALIGN=Center WIDTH=100%>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=5% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1.</FONT></TD>
     <TD WIDTH=90% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Rent</FONT></TD>
     <TD WIDTH=5% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2.</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Payment, Late Charge, Time of Essence</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3.</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Tenant's Proportionate Share</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>4.</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Real Estate Taxes</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5.</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Operating Costs</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6.</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Care of Premises</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7.</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Use and Occupancy</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>7&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>8.</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Permitted Name</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>8&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>9.</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Access by Landlord</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>8&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>10.</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Subordination</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>8&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>11.</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Assignment or Subletting</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>9&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>12.</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Alterations</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>9&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>13.</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Common Facilities</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>9&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>14.</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Appearance Outside</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>9&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>15.</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Signs</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>9&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>16.</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Security Deposit</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>10&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>17.</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Damage to Premises</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>11&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>18.</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Waiver or Breach</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>11&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>19.</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Rules and Regulations</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>11&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>20.</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Insurance</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>11&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>21.</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Condemnation</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>15&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>22.</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Additional Rent and Attorney's Fees</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>15&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>23.</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Covenant to Surrender</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>15&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>24.</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Quiet Enjoyment</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>16&nbsp;</FONT></TD></TR>
</TABLE>


<BR>
<BR>
<BR>
<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=1>
1</FONT></P>

<PAGE>



<TABLE CELLPADDING=3 CELLSPACING=0 BORDER=0 ALIGN=Center WIDTH=100%>
<TR VALIGN=Bottom>
     <TD WIDTH=5% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>25.</FONT></TD>
     <TD WIDTH=90% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Defaults</FONT></TD>
     <TD WIDTH=5% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>16&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>26.</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Notice</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>17&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>27.</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Other Taxes</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>18&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>28.</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Representations</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>18&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>29.</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Trial by Jury</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>18&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>30.</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Gender</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>18&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>31.</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Construction of Premises</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>18&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>32.</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Estoppel Certificates</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>19&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>33.</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Landlord's Liability</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>19&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>34.</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Hazardous Materials</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>19&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>35.</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Security</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>20&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>36.</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Broker Commission</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>20&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>37.</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Authority</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>20&nbsp;</FONT></TD></TR>
</TABLE>


<BR>
<BR>
<BR>
<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=1>
2</FONT></P>

<PAGE>





<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Workstation" -->
<A NAME=A001></A>
<P ALIGN=CENTER>
<FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<U>LEASE AGREEMENT</U></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This LEASE, made
___________________, 2004 by and between 300 W. FAYETTE STREET, LLC, a Delaware
limited liability company, hereinafter called &#147;Landlord,&#148; and BASI
MARYLAND, INC., a Maryland corporation, hereinafter called &#147;Tenant.&#148;
</FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Workstation" -->
<A NAME=A002></A>
<P ALIGN=CENTER>
<FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<U>WITNESSETH</U>:</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;That
in consideration of the mutual promises herein contained, the Landlord hereby rents to the
Tenant, and the latter does hereby rent from the former, the Premises described as floors
Basement, 2, 3, 4, 5, 6 and 7 of 300-306 W. Fayette Street, Baltimore City, Maryland, more
particularly described on <U>Exhibit A</U>, attached hereto and made a part hereof, containing an
agreed-upon amount of 101,000 square feet (the &#147;Premises&#148;) for the term of three
(3) years beginning on the Commencement Date as hereinafter defined. The building at
300-306 W.&nbsp;Fayette Street will hereinafter be referred to as the
&#147;Building.&#148; </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Commencement Date, whenever used herein, shall be the date when 300-306 W.&nbsp;Fayette
Street is conveyed to Landlord by Tenant via special warranty deed. Notwithstanding
anything to the contrary contained herein, for the purpose of prevention of the
application of the rule against perpetuities, if the Commencement Date has not occurred as
of the date that is seven (7) years after the date of final execution hereof, this Lease
shall be deemed terminated and shall be void and of no further force and effect. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
Lease Agreement is contingent upon a Guaranty of Lease being executed by Bioanalytical
Systems, Inc., which is attached as <U>Exhibit F</U>. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Rent</U>:</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
total monthly rental for each month of the term after the Commencement Date shall be paid
by Tenant in advance, on the first day of each month, in equal monthly installments of
Sixty-Seven Thousand Three Hundred Thirty-Three Dollars and Thirty-Three Cents
($67,333.33). If the term does not begin on the first day or end on the last day of a
month, the rent for that partial month shall be prorated by multiplying the monthly rent
by a fraction, the numerator of which is the number of days of the partial month included
in the term and the denominator of which is the total number of days in that full calendar
month. The first installment of rent shall be any partial month plus the next full
month&#146;s rent and is due and payable on the Commencement Date (including Tenant&#146;s
Proportionate Share of estimated Real Estate Taxes and Operating Costs). </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Payment, Late Charge, Time of Essence</U>:</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Tenant covenants to pay the rent as herein provided without any deduction whatsoever, and
without any obligation on the Landlord to make demand for it, failing which the Tenant
shall pay to the Landlord as Additional Rent, after the fifth (5th) Business Day
(&#147;Business Day&#148; means every day except Saturdays, Sundays and Federal Holidays)
that such payment remains due but unpaid, a late charge equal to five percent (5%) of such
payment which remains due but unpaid. Time is of the essence in this Lease. Payments shall
be made to Landlord at the address set forth herein for Notice. </FONT></P>


<BR>
<BR>
<BR>
<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=1>
1</FONT></P>

<PAGE>




<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Tenant&#146;s Proportionate Share</U>:</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tenant&#146;s
Proportionate Share means a fraction, the numerator of which is the number of rentable
square feet of the Premises and the denominator of which is the number of rentable square
feet leased and occupied in the Building, subject to adjustment from time to time as the
numerator and denominator change. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Real Estate Taxes</U>:</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Tenant covenants that it has paid or will pay all real estate taxes owed for all
periods preceding the Commencement Date. Tenant, as of the Commencement Date,
covenants and agrees to pay Landlord within thirty (30) days of Landlord&#146;s
notice to Tenant, as additional rent, Tenant&#146;s Proportionate Share of any
real estate taxes assessed against the land and Building in which the Premises
is included. If this Lease shall be in effect for less than a full tax fiscal
year, Tenant shall pay a prorated share of the taxes, based upon the number of
days that this Lease is in effect. &#147;Taxes&#148; as used herein shall
include, but not by way of limitation, all real property taxes, and any and all
other benefits or assessments which may be levied on the Premises or the land
and Building in which the same are situate, but shall not include any income tax
on the income or rent payable hereunder or any inheritance, estate, succession,
transfer, gift, franchise, corporation, income or profit tax that is or may be
imposed upon Landlord. Any reasonable expense incurred by Landlord in contesting
any real estate tax shall be included as an item of taxes for the purpose of
computing additional rent due the Landlord.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Landlord shall collect, together with the monthly payment of rent hereunder, an
amount equal to one-twelfth (1/12) of Tenant&#146;s Proportionate Share of the
estimated real estate taxes due for the next succeeding fiscal year so that
Landlord shall have an amount sufficient to pay such taxes when due. Landlord
may also make adjustments when necessary in the case of special assessments or
taxes so that Landlord will have an amount sufficient to pay such taxes when
due. Appropriate adjustments shall be made between Landlord and Tenant upon the
determination of the actual amount of such taxes.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Operating Costs</U>:</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Tenant covenants that it has paid or will pay all Operating Costs for all
periods preceding the Commencement Date. Tenant, as of the Commencement Date,
covenants and agrees to pay Landlord within thirty (30) days of Landlord&#146;s
notice to Tenant, as additional rent, Tenant&#146;s Proportionate Share of all
Operating Costs.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Landlord shall collect, together with the monthly payment of rent hereunder, an
amount equal to one-twelfth (1/12) of Tenant&#146;s Proportionate Share of the
estimated Operating Costs due for the next succeeding calendar year so that
Landlord shall have an amount sufficient to pay such Operating Costs when due.
Appropriate adjustments shall be made between Landlord and Tenant upon the
determination of the actual amount of such Operating Costs.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&#147;Operating Costs&#148; means any and all reasonable costs and expenses
incurred by the Landlord for services performed by the Landlord or by others on
behalf of the Landlord (and not performed by Tenant as described in Section
5.(a)) with respect to the operation and maintenance of the Premises, Building
and the Common Facilities located therein, in a manner deemed reasonable and
appropriate by Landlord, including, without limitation, all costs and expenses
of:</FONT></P>


<BR>
<BR>
<BR>
<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=1>
2</FONT></P>

<PAGE>



<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
operating, maintaining, repairing, lighting, signing, cleaning, removing trash
from, painting, controlling of rodents in, policing and securing the Common
Facilities;</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
purchasing and maintaining in full force insurance for the Building as deemed
necessary in Landlord&#146;s reasonable discretion (including, without
limitation, liability insurance for personal injury, death and property damage,
rent insurance, insurance against fire, extended coverage, theft or other
casualties, workers&#146; compensation insurance covering personnel, fidelity
bonds for personnel, insurance against liability for defamation and claims of
false arrest occurring on or about the Common Facilities, and plate glass
insurance);</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
operating, maintaining, repairing and replacing machinery, furniture,
accessories and equipment used in the operation and maintenance of the Building,
and the personal property taxes and other charges incurred in connection with
such machinery, furniture, accessories and equipment; however, if a replacement
expenditure is not a current expense under Generally Accepted Accounting
Principles (&#147;GAAP&#148;), then, the cost thereof shall be amortized over a
period equal to the useful life of such replacement, determined in accordance
with GAAP, and the amortized cost allocated to each calendar year during the
Term;</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
maintaining, replacing and repairing curbs, walkways, drainage pipes, ducts,
conduits and lighting fixtures throughout the Common Facilities;</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
interior and exterior planting, replanting and replacing flowers, shrubbery,
trees, grass and planters;</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
providing electricity, heating, steam, ventilation and air conditioning to the
Building, HVAC service to the Building and non-central HVAC usage (VAV boxes),
and telecommunications services infrastructure, and operating, maintaining and
repairing any equipment used in connection therewith, including, without
limitation, costs incurred in connection with determining the feasibility of
installing, maintaining, repairing or replacing any facilities, equipment,
systems or devices which are intended to reduce utility expenses of the Building
as a whole and repair and maintenance of HVAC facilities and telecommunications
infrastructure and related electrical and mechanical equipment serving all
rentable square feet of office space in the Building; however, if a replacement
expenditure is not a current expense under GAAP, then, the cost thereof shall be
amortized over a period equal to the useful life of such replacement, determined
in accordance with GAAP, and the amortized cost allocated to each calendar year
during the Term;</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
water and sanitary sewer services and other services, if any, furnished to the
Building, Premises, Common Facilities and all rentable square feet in the
Building for the non-exclusive use of tenants;</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
parcel pick up, delivery and other similar services;</FONT></P>

<BR>
<BR>
<BR>
<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=1>
3</FONT></P>

<PAGE>




<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
enforcing and complying with any operating agreements pertaining to the Common
Facilities or any portions thereof, and any easement and/or rights agreements
entered into by the Landlord for the benefit and use of the Building or tenants
thereof, or any arbitration or judicial actions undertaken with respect to the
same and all minor privilege fees;</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
cleaning, maintaining and repairing the Building, including, without limitation,
exhaust systems, sprinkler systems, pumps, fans, switchgear, loading docks and
ramps, freight elevators, passenger elevators, stairways, service corridors,
delivery passages, transformers, doors, walls, floors, skylights, ceilings,
windows, emergency generators, and fire and life safety equipment;</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
accounting, audit and fees and expenses, including a commercially reasonable
property management fee not to exceed five percent (5%) of all revenue of the
Building, payroll, payroll taxes, employee benefits and related expenses of all
personnel engaged in the operation, maintenance, and management of the Building,
including, without limitation, the property manager, any maintenance personnel,
secretaries and bookkeepers (including, specifically, uniforms and working
clothes and the cleaning thereof, tools, equipment and supplies used by such
personnel, and the expenses imposed on or allocated to the Landlord or its
agents pursuant to any collective bargaining or other agreement) (if any
personnel are engaged in or responsible for more than one (1) property, then an
equitable allocation shall be made of the expense associated with such
personnel), office expenses for on-site maintenance and/or management office;</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
the cost and expense for substituting services, labor or materials in place of
any of the items comprising the Operating Costs, or for any additional services,
labor or materials or improvements to comply with any federal, state and local
laws, orders, regulations and ordinances applicable to the Building enacted
after the Commencement Date, which may hereafter be in force, provided, however
that if, at the time of the substitution or addition, such costs are not
considered a current operating expense under GAAP, then the cost thereof shall
be amortized over a period equal to the useful life of such replacement,
determined in accordance with GAAP, and the amortized cost allocated to each
calendar year during the Term;</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
the cost (including reasonable legal, architectural and engineering fees
incurred in connection therewith) of any improvement made to the Building during
any Operating Year either (x) in order to comply with any future legal
requirement or insurance requirement imposed or enacted after the Commencement
Date, whether or not such legal requirement or insurance requirement is valid or
mandatory, (y) with the reasonable expectation by Landlord of reducing Operating
Costs (as, for example, a labor-saving improvement) or enhancing services, or
(z) in lieu of a repair; provided, however, to the extent the cost of such
improvement is required to be capitalized under generally accepted accounting
principles, such cost shall be amortized over the useful economic life of such
improvement as reasonably estimated by Landlord, and the annual amortization
shall be deemed an Operating Cost in each of the Operating Years during which
the cost of the improvement is amortized;</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
providing janitorial and trash removal services to the Building and Premises;
and</FONT></P>

<BR>
<BR>
<BR>
<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=1>
4</FONT></P>

<PAGE>



<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
all other costs of maintaining, repairing or replacing any or all of the
Building (including expenses of landscaping, snow, ice, water and debris
removal, outdoor lighting, road maintenance and exterior signage relating to the
Building); however, if a replacement expenditure is not a current expense under
GAAP, then, the cost thereof shall be amortized over a period equal to the
useful life of such replacement, determined in accordance with GAAP, and the
amortized cost allocated to each calendar year during the Term.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding
the foregoing, the following items shall be excluded from Operating Expenses:
</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
franchise or income taxes imposed upon Landlord;</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
debt service on Mortgages and any costs and expenses relating to a refinancing
or debt modification, including legal fees, title insurance premiums, survey
expenses, appraisal, environmental report, or engineering report;</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
leasing commissions, brokerage fees or legal fees incurred in connection with
the negotiation and preparation of letters, deal memos, letters of intent,
leases and related documents or enforcement with respect to the leasing,
assignment or subletting of space for any occupant of the Building;</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
the cost of tenant installations incurred in connection with preparing space for
a new tenant or refurbishing or renovating space for an existing tenant;</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
salaries and other compensations of personnel above the grade of building
manager;</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
any expense for which Landlord is otherwise compensated through the proceeds of
insurance (less any deductible amounts paid) or is otherwise compensated by any
tenant (including Tenant) of the Building for services in excess of the services
Landlord is obligated to furnish to Tenant hereunder;</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
capital costs, depreciation or amortization (except as provided in the list of
inclusions for Operating Costs under item (xiii) above);</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
costs incurred by Landlord due to a violation of any lease in the Building or
penalties or charges arising due to violation of any Legal Requirement or
Insurance Requirement required to be complied with by Landlord;</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
the cost of repairing the roof,</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
the cost of removing any hazardous materials located at the Building and/or
complying with all environmental laws, but only to the extent such costs are not
otherwise caused by or borne by Tenant;</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
fines or penalties for late payment;</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
services provided to other tenants but not to Tenant;</FONT></P>

<BR>
<BR>
<BR>
<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=1>
5</FONT></P>

<PAGE>


<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
general corporate overhead;</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
works of art, charitable or political contributions;</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
reserves; and</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Project" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
entertainment or travel expenses.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Landlord warrants and represents that none of the expenses included in
determining Tenant&#146;s Proportionate Share of Common Costs shall be included
in any other charge payable under this Lease. Tenant shall have the right to
audit Landlord&#146;s books and records from time to time, but no more than one
time every 12 months, to verify the accuracy of the statements being provided by
Landlord with respect to Operating Costs. Tenant shall recover the costs of such
audit if the pass through of Operating Costs is more than 110% of the amount
Tenant should have paid.:</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Care of Premises</U>:</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Tenant agrees that it will take good care (including its own interior
janitorial service) of the Premises, fixtures, and appurtenances, including the
following items and elements serving the Premises: exterior doors and windows,
window frames, hardware and the like, and meters, plumbing, heating and air
conditioning equipment (including that on the exterior of the building), the
elevators of the Building and keep same in good order and repair throughout the
term of this Lease in a manner comparable to the order and state of repair
extant of the Commencement Date, and suffer or permit no waste or injury;
Landlord shall assign to Tenant, for the benefit of the Tenant, to the extent
they are assignable or otherwise available for the benefit of the Tenant, any
warranties on such equipment furnished Landlord by the Tenant and/or provider
thereof; that Tenant will conform to all laws, orders, and regulations of the
Federal, State, County and City authorities or any of their departments, and
will not, through its own act or neglect, cause any situation to exist in or
about the Premises which would constitute a violation of any applicable Federal,
State, County, or City Code Regulation or Ordinance governing use, occupancy,
health, sanitation, or fire; that it will save harmless the Landlord from any
liability arising from injury to person or property caused by any act or
omission of Tenant, his agents, employees or guests; that it will repair at or
before the end of the term, or sooner if so requested by the Landlord, all
injury done by the installation or removal of furniture or other property, and
will surrender the Premises at the end of the term broom cleaned in as good
condition as they were at the beginning of the term, ordinary wear and tear,
condemnation, alterations as permitted by this Lease and casualties by fire and
elements excepted. In the event of any increase in the cost of insurance as a
result of the failure of the Tenant to comply with the provisions of this
Paragraph, the Tenant will pay the amount of such increase as additional rent
within thirty (30) days after the Landlord&#146;s written demand, which will
provide evidence that the stated actions increased the cost of insurance.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Landlord shall be under no liability to the Tenant for any discontinuance of heat, air
conditioning, and hot water unless due solely to Landlord&#146;s negligence. The Landlord
shall not be liable for any loss or damage to the Tenant caused by rain, snow, water or
storms that may leak into or flow from any part of the premises through any defects in the
roof or plumbing or from any other source unless due solely to Landlord&#146;s negligence. </FONT></P>


<BR>
<BR>
<BR>
<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=1>
6</FONT></P>

<PAGE>




<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Landlord shall have no obligation whatsoever to make any repairs to the Premises
other than to make repairs resulting from damage caused by negligence, if any,
of Landlord or its agents or employees or contractors except as otherwise
provided in this Agreement.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Landlord agrees to maintain and will keep in good repair, the exterior walls of
the Building, the roof, slabs, foundations and structural elements of the
Building. Landlord, at its expense, will make all structural repairs that it
deems necessary in its reasonable discretion (excluding, however, all doors,
door frames, floors, windows and glass); provided Tenant shall give Landlord
notice of the necessity for such repairs. If the Premises, or any portion
thereof critical to performance of Tenant&#146;s business, are rendered unfit
for the business purposes for which it was leased due to a structural problem in
the exterior walls, structural columns, roof, roof penetrations or structural
floor, for more than thirty (30) consecutive days, then the rent shall abate
proportionately to the amount of space rendered unfit for the business purposes
for which it was leased for the amount of time such condition shall exist.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Tenant shall not place a load upon any floor of the Premises that exceeds the
lesser of (i) floor load per square foot, which such floor was designed to carry
or (ii) the maximum floor load per square foot allowed by law. Business machines
and mechanical equipment shall be placed and maintained by Tenant, at
Tenant&#146;s expense, in settings sufficient in Landlord&#146;s reasonable
judgment to absorb and prevent vibration, noise and annoyance.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
There shall be no allowance to Tenant for any diminution of rental value and no
liability on the part of the Landlord by reason of inconvenience, annoyance or
injury to business arising from the making by Landlord, Tenant or others of any
repairs in or to the Building or the Premises, or in or to the fixtures,
appurtenances or equipment thereof. Except in case of emergency, as determined
in Landlord&#146;s sole discretion, Landlord will use commercially reasonable
efforts to minimize any interference with Tenant&#146;s use and occupancy in
connection with Landlord&#146;s entering to make repairs.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In the event Tenant shall not proceed promptly and diligently to make any
repairs or perform any obligation imposed upon it by this Section 4 within ten
(10) days after receiving written notice from Landlord to make such repairs or
perform such obligation (unless such repairs or obligation is of such nature
that it cannot be cured within such ten (10) day period, in which case Tenant
shall have such longer period of time as is required, provided that Tenant shall
diligently prosecute such repairs or perform such obligation), then and in such
event, Landlord, may, at its option, enter the Premises and do and perform the
things specified in said notice, without liability on the part of Landlord for
any loss or damage resulting from any such action by Landlord and Tenant agrees
to pay promptly upon demand any cost or expense incurred by Landlord in taking
such action, including an administrative fee equal to 10% of the cost or expense
incurred.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Use and Occupancy</U>:</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Premises is to be used only for the purposes that it is being used by the Tenant during
2004 or for general office use, and for no other purpose without Landlord&#146;s prior
approval which approval shall not be unreasonably withheld. Tenant will not use the
Premises for any unlawful purpose; Tenant covenants not to conduct nor permit to be
conducted on the Premises any business in violation of any law of the City in which the
Premises is located or State or Federal law, ordinance or regulation. With respect to the
remainder of the Building, Landlord shall, throughout the Term, and at Landlord&#146;s
sole cost and expense, promptly observe and comply with all present and future laws,
ordinances, notices, orders, rules, regulations, directions and requirements of all
federal, state, county and municipal governments and the appropriate departments,
commissions, boards and officers thereof (including, but not limited to, environmental
laws (excluding, however, any environmental laws that apply solely due to the presence of
hazardous materials brought onto the Premises by Tenant)), as well as any and all notices,
orders, rules and regulations of the National Board of Fire Underwriters, or any other
body now or hereafter constituted and exercising similar functions. </FONT></P>



<BR>
<BR>
<BR>
<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=1>
7</FONT></P>

<PAGE>



<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Permitted Name</U>:</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tenant
shall conduct business in the Premises only in the name of Tenant and under no other name
or trade name unless and until the use of some other name is approved in writing by
Landlord, which approval shall not be unreasonably withheld. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Access by Landlord</U>:</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Landlord shall retain duplicate keys to all of the doors of the Premises, and the Landlord
or his agents shall have access to the Premises at all reasonable hours in order to
inspect same, to clean or to make necessary repairs improvements within the Premises or
the Building with reasonable prior notice to tenant unless an emergency situation exists
at which time no notice is required. The Landlord will use reasonable efforts not to
disturb Tenant&#146;s use or enjoyment of Premises if Landlord or his agents enters
non-secured areas. The Landlord will not, except in the case of emergency, under any
circumstances, enter secured areas during active clinical studies without advance notice
to Tenant. To ensure federal regulatory compliance during active studies, Tenant&#146;s
chaperone will be required for Landlord or his agents. Landlord or his agents will follow
chaperone guidance in all matters to ensure regulatory compliance. The Landlord shall have
the right to show the Premises to prospective tenants upon 48 hours advance notice and put
a FOR LEASE sign in the windows at any time during the lease term providing it does not
unduly interfere with the Tenant&#146;s use of the Premises. </FONT></P>

<!-- MARKER FORMAT-SHEET="ARTICLE -TNR" FSL="Workstation" -->
<A NAME=A003></A>
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Subordination</U>:</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Lease shall be
subject to and subordinate at all times only to the lien of any first mortgage
and/or deed of trust and to all advances made or hereafter to be made
thereunder. This subordination provision shall be self-operative and no further
instrument of subordination shall be required; however, Tenant agrees to
execute, upon request, any such subordination document. The form of
Subordination, Attornment and Non-Disturbance Agreement (&#147;SNDA&#148;) to be
executed by Tenant and Landlord at the same time this Lease is executed is
attached hereto as <U>Exhibit E</U>. Landlord&#146;s lender shall execute this SNDA
within 30 days of the signing of this Lease and a copy of the fully signed SNDA
will be provided to Tenant. </FONT></P>


<BR>
<BR>
<BR>
<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=1>
8</FONT></P>

<PAGE>




<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Assignment or Subletting</U>:</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tenant
shall not assign, mortgage or encumber this Lease, nor sublet the premises or any part
thereof without the consent of Landlord, which consent shall not be unreasonably delayed
or withheld. In the event of the insolvency or bankruptcy of Tenant, this Lease shall, at
the option of the Landlord, terminate forthwith, and this Lease shall not, by operation of
law or otherwise, be considered a part of the Tenant&#146;s estate. </FONT></P>

<!-- MARKER FORMAT-SHEET="ARTICLE -TNR" FSL="Workstation" -->
<A NAME=A004></A>
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Alterations</U>:</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Tenant covenants not to make or permit any alterations, additions or improvements to said
Premises without the prior written consent of the Landlord which shall not be unreasonably
withheld or delayed, unless such proposed work requires a permit under Baltimore City
codes or otherwise, in which event Landlord&#146;s right to approve shall be absolute. All
additions and improvements made by Tenant, except only moveable office furniture, and
equipment, shall become the property of the Landlord at the termination of this Lease or
the vacating of the Premises. At the Landlord&#146;s request, any such alterations and
improvements made after the Commencement Date shall be restored to their original
condition by Tenant at Tenant&#146;s expense at the termination of this Lease, if at the
time of Landlord&#146;s consent to such alteration or improvement a condition was attached
that required removal of such alteration or improvement. </FONT></P>

<!-- MARKER FORMAT-SHEET="ARTICLE -TNR" FSL="Workstation" -->
<A NAME=A005></A>
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Common
Facilities</U>:</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Common Facilities which may be furnished by Landlord in or near the Building for the
general common use of Tenants, their officers, agents, employees and customers, including,
without limitation, sidewalks, elevators and the lobby shall at all times be subject to
the exclusive control and management of Landlord. Landlord reserves the right, in its
reasonable discretion, to change, rearrange, alter, modify, reduce or supplement any or
all of the common facilities so long as adequate facilities in common are appropriate to
ensure legally compliant operation and do not unreasonably inconvenience Tenant&#146;s
study volunteers, clients or employees. </FONT></P>

<!-- MARKER FORMAT-SHEET="ARTICLE -TNR" FSL="Workstation" -->
<A NAME=A006></A>
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Appearance
Outside</U>:</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tenant
shall maintain its windows in a neat and clean condition, shall keep the sidewalks
adjoining the Demised Premises clean and free from rubbish, and shall store all trash and
garbage in the dumpsters provided by Tenant including, without limitation. Tenant shall
not burn any trash of any kind in or about the building, nor shall Tenant permit rubbish,
refuse or garbage to accumulate or fire hazard to exist about the Premises. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Signs</U>:</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Tenant shall not display any sign, picture, advertisement, awning, merchandise, or notice
on the outside or roof of the Building of which the Premises are a part, nor on the
exterior of the Premises nor visible from the exterior of the Building unless approved by
the Landlord in writing. All current signs in their current locations are approved. </FONT></P>


<BR>
<BR>
<BR>
<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=1>
9</FONT></P>

<PAGE>




<!-- MARKER FORMAT-SHEET="ARTICLE -TNR" FSL="Workstation" -->
<A NAME=A007></A>
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Security
Deposit</U>:</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Tenant shall upon execution of this Lease, deposit with Landlord a Letter of
Credit in the form mandated by paragraph (b) hereof in the sum of Two Million
Eight Hundred Thousand Dollars ($2,800,000) (the &#147;Security&#148;) which
shall be held by Landlord as hereinafter provided. The face amount of the Letter
of Credit may be reduced to Two Million Dollars ($2,000,000) on the first
anniversary of the Commencement Date and to One Million Dollars ($1,000,000) on
the second anniversary of the Commencement Date.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;It
is agreed that in the event Tenant defaults in respect of any of the terms, provisions and
conditions of this Lease, including, but not limited to, the payment of Basic Annual Rent
and Additional Rent, then, Landlord may, without notice, use, apply or retain the whole or
any part of the Security so deposited to the extent required for the payment of any Basic
Annual Rent and Additional Rent or any other sum as to which Tenant is in default or for
any sum which Landlord may expend or may be required to expend by reason of Tenant&#146;s
default in respect of any of the terms, covenants and conditions of this Lease, including
but not limited to, any damages or deficiency in the re-letting of the Demised Premises,
whether such damages or deficiency accrued before or after summary proceedings or other
re-entry by Landlord. If Landlord applies or retains all or any portion of the Security,
Tenant shall as a material covenant hereunder immediately upon Landlord&#146;s demand
restore the amount so applied so that Landlord has on deposit the full amount of Security.
In the event that Tenant shall fully and faithfully comply with all of the terms,
provisions, covenants and conditions of this Lease, the Security shall be promptly
returned to Tenant. In the event of a sale of the land and Building or leasing of the
Building, of which the Demised Premises form a part, Landlord shall have the right to
transfer control over the Security to the vendee or lessee and Landlord shall thereupon be
released by Tenant from all liability for the return of such Security; and Tenant agrees
to look to the new Landlord solely for the return of the Security, and it is agreed that
the provisions hereof shall apply to every transfer or assignment made of the Security to
a new Owner. Tenant further covenants that it will not assign or encumber or attempt to
assign or encumber the Letter of Credit herein as security and that neither Landlord nor
its successors or assigns shall be bound by any such assignment, encumbrance, attempted
assignment or attempted encumbrance. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Security shall be in the form of an irrevocable, clean &#147;Evergreen&#148;
automatically renewable commercial Letter of Credit in the amount of $2,800,000
(the &#147;Letter of Credit&#148;), issued by National City Corporation Bank
which is authorized by the State of Indiana to conduct banking business in
Indiana and which has been approved by Landlord. The Letter of Credit shall
provide for presentation and payment in Indianapolis, and shall permit Landlord
(a) to draw thereon up to the full amount of the credit evidenced thereby (but
partial drawings shall be permitted) in the event of any default by Tenant in
the terms, provisions, covenants or conditions of this Lease or (b) to draw the
full amount thereof to be held as cash security if for any reason the Letter of
Credit is not renewed within thirty (30) days prior to its expiration date. A
copy of a form of Letter of Credit acceptable to Landlord is attached hereto as
<U>Exhibit B</U>. The Letter of Credit (and each renewal thereof) shall (i) be for a
term of not less than one (1) year (except that the last Letter of Credit shall
be for a term expiring sixty (60) days after the Expiration Date), (ii)
expressly provide for the issuing bank to notify Landlord in writing not less
than thirty (30) days prior to its expiration as to its renewal or non-renewal,
as the case may be, and (iii) if not so renewed each year (or later period of
expiration) shall be immediately available for Landlord to draw up to the full
amount of such credit (to be held as cash security). Not less than forty-five
(45) days prior to the expiration date of each Letter of Credit (and every
renewal thereof), Tenant shall deliver to Landlord a renewal or new Letter of
Credit subject to all of the conditions aforesaid, all to the intent and
purposes, that a Letter of Credit in the amounts required by Section (a) above
shall be in effect during the entire term of this Lease. Failure by Tenant to
comply with the provisions of this Article shall be deemed a material default
hereunder entitling Landlord to exercise any and all remedies as provided in
this Lease for default in the payment of fixed rent and, to draw on the existing
Letter of Credit up to its full amount.</FONT></P>


<BR>
<BR>
<BR>
<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=1>
10</FONT></P>

<PAGE>




<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Damage to Premises</U>:</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
the Premises are partially damaged by fire or other casualty Landlord shall make repairs
as speedily as conveniently possible. If the damage is so extreme as to render the
Premises untenantable for the Permitted Use, the rent shall cease until the Premises are
put into repair by the Landlord. In the event of a total or substantial destruction of the
Building of which the Premises form a part, or if in the judgment of the Landlord the
damage to the Premises cannot be repaired within one hundred twenty (120) days, and if the
Landlord shall decide not to restore or repair the same, or shall decide to demolish the
building, the Landlord or Tenant may, within forty-five (45) days after such fire or other
casualty, by notification to the other party, terminate this Lease. In the event the
Premises are only partially damaged and remain tenantable for the Permitted Use, Tenant
shall continue to pay rent, which rent shall be equitably adjusted. In no event shall
Landlord be liable for any loss or damage sustained by Tenant by reason of fire or other
accidental casualty. In the event more than fifty (50%) percent of the building is
destroyed and the Premises are untenantable for the Permitted Use, the Tenant may
terminate this Lease upon thirty (30) days prior written notice to the Landlord. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Waiver or Breach</U>:</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No
waiver of any breach of the covenants, provisions or conditions contained in this Lease
shall be construed as a waiver of the covenant itself or any subsequent breach itself, and
if any breach shall occur and afterwards be compromised, settled or adjusted, this Lease
shall continue in full force and effect as if no breach had occurred. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Rules and Regulations</U>:</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tenant
shall comply with all rules and regulations of 300-306 West Fayette Street, which rules
and regulations are attached hereto as <U>Exhibit C</U> and are hereby made a part of this
Agreement. Any violation of said rules shall be a default under this Lease. Landlord shall
have the right to reasonably make additions and amendments to the Rules and Regulations,
which shall be as binding on Tenant as if set forth herein, provided such additions and
amendments do not materially and adversely affect the Tenant&#146;s use of the Demised
Premises, and provided that they are not inconsistent with the terms of this Lease and
Tenant receives written notification of such changes. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Insurance</U>:</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Tenant&#146;s Insurance. At all times the Tenant shall take out and keep in full
force and effect, at its expense:</FONT></P>

<BR>
<BR>
<BR>
<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=1>
11</FONT></P>

<PAGE>



<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Comprehensive General Liability insurance, including Blanket Contractual
Liability, Broad Form Property Damage, Completed Operations/Products Liability,
Personal Injury Liability, Premises Medical Payments, Interest of Employees as
Additional Insureds, and Broad Form General Liability Endorsement, with Combined
Single limits of not less than Two Million Dollars ($2,000,000) Per Occurrence
and Four Million Dollars ($4,000,000) Annual aggregate;</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Special Form property insurance written at full Replacement Cost and with an
Agreed Amount Endorsement with deductibles of more than Twenty Five Thousand
Dollars ($25,000.00) covering all of Tenant&#146;s property, including, without
limitation, inventory, trade fixtures, floor coverings, furniture, electronic
data processing equipment and any other property removable by Tenant under the
provisions of this Lease;</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Worker&#146;s Compensation up to statutory limits and Employers Liability limits
of at least $500,000 per Person, $500,000 per Accident and $500,000 per Disease;</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Umbrella Liability may be placed excess of Primary Comprehensive General
Liability limits as long as the insurance in place is at least $2,000,000 Per
Occurrence and $4,000,000 Annual Aggregate as noted above in Section 20.1 (a);
and</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
such other insurance in such types and amounts as Landlord may reasonably
require, from time to time.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Tenant&#146;s Contractor&#146;s Insurance. For all building, the Tenant shall
require any contractor of the Tenant performing work in, on or about the
Building or the Premises to take out and keep in full force and effect, at no
expense to the Landlord:</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Comprehensive General Liability insurance on an Occurrence Form, including
Contractor&#146;s Liability coverage, Blanket Contractual Liability coverage,
Broad Form Property Damage Endorsement, Contractor&#146;s Protective Liability,
Personal Injury, Premises Medical Payments, Interest of Employees as Additional
Insureds, Broad Form General Liability Endorsement, in an amount not less than a
combined single limit per occurrence of Five Million Dollars ($5,000,000) and a
Ten Million Dollar ($10,000,000) annual aggregate on a per location or per
project basis. Liability Retentions or Deductibles shall not exceed $10,000 per
loss, and in all cases must include an Aggregate Retention or Aggregate
Deductible of no more than $25,000.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Automobile Liability insurance, covering all owned, leased, Employers Non-Owned
and Hired automobiles used by all contractors and all sub-contractors, with
Combined Single limits of at least $1,000,000;</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Worker&#146;s Compensation up to statutory limits, including an All States
Endorsement and Employers Liability limits of at least $1,000,000 per Person,
$1,000,000 per Accident and $1,000,000 per Disease; and</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Such other insurance and in amounts as Landlord may reasonably require, from
time to time.</FONT></P>


<BR>
<BR>
<BR>
<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=1>
12</FONT></P>

<PAGE>



<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Policy Requirements.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 5-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=90%><div align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.3.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The company or companies writing any insurance which the Tenant is required to take out
and maintain or cause to be taken out or maintained pursuant to subsections 20.1 and/or
20.2, as well as the form of such insurance, at all times be subject to the
Landlord&#146;s reasonable approval, and any such company or companies shall be licensed
to do business in the State of Maryland and have a AM Best rating of at least A- or better
and a financial size rating of IX or higher. Public liability and all-risk casualty
insurance policies evidencing such insurance shall name the Landlord and/or its designees
(including, without limitation, any Mortgagee) as Additional Insureds, shall be primary
and noncontributory, and shall also contain a provision by which the insurer agrees that
such policy shall not be cancelled, materially changed, terminated or not renewed except
after ninety (90) days&#146; advance written notice to the Landlord and/or such designees.
All such policies, or certificates thereof, shall be deposited with the Landlord promptly
upon commencement of the Tenant&#146;s obligation to procure the same. None of the
insurance which the Tenant is required to carry and maintain or cause to be carried or
maintained pursuant to subsections 20.1 and/or 20.2 shall contain deductible provisions in
excess of Ten Thousand Dollars ($10,000), unless approved in writing in advance by the
Landlord. If the Tenant fails to perform any of its obligations pursuant to this section
20, the Landlord may perform the same and the cost thereof shall be payable by the Tenant
as Additional Rent upon the Landlord&#146;s demand therefor. </FONT></div></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Indemnities by Tenant and Landlord.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 5-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=90%><div align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.4.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Subject to the provisions of subsection 20.8, the Tenant hereby agrees for itself and its
successors and assigns to indemnify and save the Landlord and the Landlord agrees for
itself and its successors and assigns to indemnify and save Tenant harmless from and
against any liability or claims of liability arising solely out of the negligence or
intentional acts and omissions of the Tenant or Landlord, their agents, contractors,
licensees, suppliers, materialmen, invitees or employees respectively in connection with
(i) the use, occupancy, conduct, operation or management of the Premises; (ii) any work or
thing whatsoever done or not done on the Premises during the Term performed by Tenant or
Landlord and their respective employees, agents or contractors; (iii) any breach or
default in performing any of the obligations under the provisions of this Lease and/or
applicable law by the Tenant during the Term; or (iv) any injury to or death of any person
or any damage to any property occurring on the Premises. </FONT></div></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=90%><div align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.4.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If any such claim, action or proceeding is brought against either party and/or any agent
or Mortgagee, that party, at its own expense, promptly shall resist or defend such claim,
action or proceeding or cause it to be resisted or defended by an insurer. The Landlord,
at its option, shall be entitled to comment on the selection of Tenant&#146;s counsel, and
participate in settlement and all other matters pertaining to such claim, action or
proceeding, all of which shall be subject, in any case, to the prior written approval of
the Landlord. </FONT></div></TD>
</TR>
</TABLE>
<BR>

<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=90%><div align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.4.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Subject to the provisions of subsection 20.8, the Landlord hereby agrees for itself and
its successors and assigns to indemnify and save the Tenant harmless from and against any
liability or claims of liability arising solely out of the negligence or intentional acts
and omissions of the Landlord, its agents or employees in connection with (i) the use,
occupancy, conduct, operation or management of the Building; (ii) any work or thing
whatsoever done or not done in the Building during the Term performed by Landlord, its
employees, agents or contractors; (iii) any breach or default in performing any of the
obligations under the provisions of this Lease and/or applicable law by the Landlord
during the Term; or (iv) any injury to or death of any person or any damage to any
property occurring in the Building. </FONT></div></TD>
</TR>
</TABLE>
<BR>


<BR>
<BR>
<BR>
<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=1>
13</FONT></P>

<PAGE>



<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Landlord Not Responsible for Acts of Others.&nbsp;&nbsp;&nbsp;&nbsp;The Landlord shall not be
responsible or liable to the Tenant, or to those claiming by, through or under
the Tenant, for any loss or damage which may be occasioned by or through the
acts or omissions of persons occupying or using space adjoining the Premises or
any part of the premises adjacent to or connecting with the Premises or any
other part of the Building, or for any loss or damage resulting to the Tenant
(or those claiming by, through or under the Tenant) or its or their property,
from (a) the breaking, bursting, stoppage or leaking of electrical cable and/or
wires, or water, gas, sewer or steam pipes, (b) falling plaster, or (c)
dampness, water, rain or snow in any part of the Building. Tenant hereby
releases and waives all claims against Landlord, its agents and employees for
injury or damage to person, property or business sustained in or about the
Building or the Premises by Tenant, its agents or employees other than injury or
damage caused by the negligence or willful misconduct of Landlord, its agents or
employees. Neither the Landlord nor the Tenant is obligated to protect from the
criminal acts of third parties the other party, the other party&#146;s agents,
customers, invitees or employees, the Premises or any property of any of the
other party&#146;s agents, customers, invitees or employees. Tenant hereby
acknowledges that Tenant has the sole responsibility for the protection of the
Premises, the Tenant&#146;s property and the Tenant&#146;s customers, agents,
invitees and employees. Tenant acknowledges that, if Landlord shall provide
security guards for the Common Facilities at the Building, Landlord does not
represent, guarantee, or assume responsibility that Tenant will be secure from
any claims or causes of action relating to such security guards.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Landlord&#146;s Insurance.&nbsp;&nbsp;&nbsp;&nbsp;During the Term, the Landlord shall maintain, in
commercially reasonable amounts with commercially reasonable deductibles; (a)
insurance on the Building against loss or damage by loss or damage covered with
a Special Perils property form, (b) Comprehensive General Liability insurance
with respect to the Common Facilities, against claims for personal injury or
death, or property damage suffered by others occurring in, on or about the
Building, and (c) any other insurance, in such form and in such amounts as are
deemed reasonable by the Landlord. Landlord shall provide proof of insurance to
Tenant upon request.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Increase in Insurance Premiums.&nbsp;&nbsp;&nbsp;&nbsp;The Tenant shall not do or suffer to be done, or
keep or suffer to be kept, anything in, upon or about the Premises, the Building
which will contravene the Landlord&#146;s policies of hazard or liability
insurance or which will prevent the Landlord from procuring such policies from
companies acceptable to the Landlord. If anything done, omitted to be done, or
suffered by the Tenant to be kept in, upon or about the Premises, the Building
shall cause the rate of fire or other insurance on the Premises, the Building to
be increased beyond the minimum rate from time to time applicable to the
Premises or to any such other property for the use or uses made thereof, the
Tenant shall pay to the Landlord, as Additional Rent, the amount of any such
increase upon the Landlord&#146;s demand therefore.</FONT></P>


<BR>
<BR>
<BR>
<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=1>
14</FONT></P>

<PAGE>




<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20.8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Waiver of Right of Recovery.&nbsp;&nbsp;&nbsp;&nbsp;To the extent that any loss or damage to the
Premises, the Building, or other tangible property, or resulting loss of income,
or losses under workers&#146; compensation laws and benefits, are covered by
insurance, neither party shall be liable to the other party or to any insurance
company insuring the other party (by way of subrogation or otherwise), even
though such loss or damage might have been occasioned by the negligence of such
party, its agents or employees. In the event that such waiver of subrogation
shall not be available to the parties except through the payment of additional
premium therefore, the Tenant shall pay such additional premium.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Condemnation</U>:</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
the event the whole or any part of the Premises shall be taken under the power of eminent
domain, or sold under threat thereof, or taken in any manner for public use, the Landlord,
at its option, may terminate this Lease, which Lease shall then terminate on the effective
date of the condemnation or sale. The compensation awarded or paid for such taking shall
belong to and be the sole property of the Landlord; provided, however, that Tenant may
seek moving and relocation expenses and compensation for loss of business from the
condemning authority, and Tenant shall be entitled to receive from Landlord or the
condemning authority, as the case may be, that portion of such compensation awarded by the
condemning authority as is deemed by the condemning authority to represent Tenant&#146;s
moving and relocation expense and compensation for loss of business. Notwithstanding
anything contained in this Section 21 to the contrary, Tenant may interpose and prosecute
in any condemnation proceedings a claim for the value of any leasehold improvements, trade
fixtures or personal property paid for and installed by Tenant in the Premises, any of
which were made or installed after the Commencement Date. Tenant shall have no claim
against the Landlord or be entitled to any award or damages other than an abatement of the
rent beyond the period of termination date. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Additional Rent and Attorney&#146;s Fees</U>:</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Whenever,
under the terms of this Lease, any sum of money is required to be paid Tenant in addition
to the rental herein reserved, whether or not such sum is herein designated as
&#147;additional rental,&#148; or provision is made for the collection of such sum as
&#147;additional rental,&#148; said sum shall, nevertheless, at Landlord&#146;s option, if
not paid when due, be deemed additional rent, and shall be collectable as such. In the
event of employment of an attorney either by the Landlord or the Tenant because of the
violation of any term or provision of this Lease, the Court or arbitrator shall require
the losing party to pay the other party&#146;s reasonable attorney&#146;s fees. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Covenant to Surrender</U>:</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
Lease and the tenancy hereby created shall cease and terminate at the end of the original
term hereof, without the necessity of any notice of termination from either Landlord or
Tenant, and Tenant hereby waives notice to remove and agrees that Landlord shall be
entitled to the benefit of law respecting summary recovery of possession of the premises
from a Tenant holding over to the same extent as if statutory notice was given. If Tenant
shall occupy the premises after such expiration or termination, it is understood that
Tenant shall hold the premises as a tenant from month to month, subject to all the other
terms and conditions of this Lease, at an amount equal to 150% of the highest monthly
rental installment reserved in this Lease. </FONT></P>


<BR>
<BR>
<BR>
<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=1>
15</FONT></P>

<PAGE>



<!-- MARKER FORMAT-SHEET="ARTICLE -TNR" FSL="Workstation" -->
<A NAME=A008></A>
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Quiet
Enjoyment</U>:</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Landlord
covenants that, upon the payment of the rent herein provided, and the performance by the
Tenant of all covenants herein, and provided that no ongoing, uncured event of default
shall exist, Tenant shall have and hold the premises, free from any interference from the
Landlord, except as otherwise provided for herein. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Defaults</U>:</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In case of the non-payment of rent or additional rent which continues for five
(5) Business Days after written notice of same, or in case the said Premises are
deserted, or vacated, the Landlord shall have the right to enter the same by
operation of law and remove Tenant from premises.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
If either party believes the other has defaulted hereunder other than with
regard to a matter described in this Section 25(a) hereof, that party may give
written notice to the other of such default and request that party within ten
(10) days to assess and pursue with reasonable diligence all steps necessary to
remedy the same, subject to delays by reason of Force Majeure.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Landlord shall have the right after the (i) non-payment of rent within the
applicable time period provided for herein or (ii) if after the action under
Subsection (b) hereof there remains a default, to re-enter and take possession
of the Premises without further formal notice if the default has not been
corrected within said applicable time period (provided that if the Tenant has
commenced to repair the Premises within said applicable time period as to
non-monetary defaults and proceeds, with due diligence to complete same, it
shall not constitute a default), and it is further agreed that notwithstanding
such re-entry, the Tenant shall remain liable for all rent and other damages
including, but not limited to, the cost to repair, restore, renovate, or
decorate the Premises for a new tenant, reasonable attorney&#146;s fees, real
estate commissions, and the cost of any legal actions brought against Tenant and
losses as of the date of re-entry, and shall further be liable, at the option of
the Landlord, for the amount of rent reserved under the Lease for the balance of
the term, less any amount of rent received by the Landlord during such period
from others to whom the Premises may be rented on such terms and conditions and
at such rentals as Landlord, in its reasonable discretion, shall deem proper,
all of which shall be at the risk and expense of the Tenant. In addition,
Landlord, at its option, shall have the right to repossess the Premises and
terminate this Lease.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In the event Landlord terminates this Lease, the Landlord may, without further
notice, re-enter the Premises and dispossess Tenant, the legal representatives
of Tenant, or other occupant of the Premises, and remove their effects and hold
the Premises as if this Lease has not been made. The Landlord shall also be
entitled to the benefit of all provisions of law for the recovery of land and
tenements held over by Tenant in Baltimore City, Maryland, including the benefit
of any public, general or local laws relating to the speedy recovery of
possession of lands and tenements held over by lessees in said City in which the
Premises are located, or that may hereafter be enacted.</FONT></P>


<BR>
<BR>
<BR>
<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=1>
16</FONT></P>

<PAGE>


<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
It is expressly agreed and understood that the exercise of any one or more of
said rights shall not be construed as a waiver of any other rights, it being
understood that all of said rights shall be cumulative and may be exercised
simultaneously.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Notice</U>:</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
notices from Tenant to Landlord shall be sent by Registered or Certified Mail, Return
Receipt Requested, hand delivery or nationally recognized overnight delivery service and
addressed to: </FONT></P>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Henry Glover<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Kevin F. Donohoe Company, Inc.<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Curtis Center<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Suite 700<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Independence Square West<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Philadelphia, Pennsylvania 19106<BR>
<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and:<BR>
<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mark P. Keener, Esq.<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gallagher Evelius &amp; Jones LLP<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;218 N. Charles Street<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Suite 400<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Baltimore, Maryland 21201<BR>
</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;After occupancy of the demised
premises, all notices from Landlord to Tenant shall be sent by Registered or
Certified Mail, Return Receipt Requested, hand delivery, or nationally
recognized overnight delivery service and addressed to Tenant at: </FONT></P>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Michael Noone<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;General Manager<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;BASI Maryland, Inc.<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;300 Fayette Street<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Baltimore, Maryland 21201<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fax: (410) 385-1957<BR>
<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and:<BR>
<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Rodney Bentley<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Controller<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bioanalytical Systems, Inc.<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2701 Kent Avenue West<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Lafayette, IN 47906<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fax: (765) 497-1102<BR>
<BR></FONT></P>

<BR>
<BR>
<BR>
<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=1>
17</FONT></P>

<PAGE>




<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and:</FONT></P>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Ice Miller<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;One American Square<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Box 82001<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Indianapolis, IN 46282-0200<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Attention: Stephen Hackman, Esq.<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fax: (317) 592-4666<BR>
</FONT></P>


<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Either party may from time to time, designate, in writing, by Notice, a
substitute address and thereafter all notices shall be sent to such substitute
address.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Other Taxes</U>:</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tenant
shall assume and pay to Landlord, as additional rent, prior to the imposition of any,
penalty, interest or costs for the non-payment thereof, all excise, sales, gross receipts,
or other tax (other than a net income or excess profits tax) which may be (i) assessed or
imposed on or be measured by such rent or other charge which may be treated as rent, or
(ii) which may be imposed on the letting or other transaction for which such tax is
payable and which Landlord may be required to payor collect under any law now in effect or
hereafter enacted by any governmental authority. If such other tax is imposed as
contemplated by this paragraph, Tenant shall have the sole authority, with the cooperation
of Landlord, to contest and/or appeal such imposition. </FONT></P>

<!-- MARKER FORMAT-SHEET="ARTICLE -TNR" FSL="Workstation" -->
<A NAME=A039></A>
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;28.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Representations</U>:</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Landlord
or Landlord&#146;s agents have made no representations or promises with respect to the
said Building or Premises except as herein expressly set forth. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;29.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Trial by Jury</U>:</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Landlord
and Tenant do hereby waive trial by jury in any action, proceeding or counter claim
brought by either of the parties hereto against the other on any matters whatsoever
arising out of or in any way connected with this Lease, the relationship of Landlord and
Tenant, Tenant&#146;s use or occupancy of the demised premises, and/or any claim of injury
or damage, and any emergency statutory or any other statutory remedy. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;30.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Gender</U>:</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reference
to masculine, feminine or neuter shall include proper gender as the case may be. If more
than one Tenant is named herein, the obligations of the person so named shall be joint and
several. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;31.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Construction of Premises</U>:</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To
the extent possible, Landlord shall make available to Tenant the benefits of all
warranties and guarantees obtained from contractors, subcontractors, suppliers and
manufacturers in connection with the construction and subsequent alteration and repair of
the Premises and appurtenances. </FONT></P>


<BR>
<BR>
<BR>
<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=1>
18</FONT></P>

<PAGE>



<!-- MARKER FORMAT-SHEET="ARTICLE -TNR" FSL="Workstation" -->
<A NAME=A040></A>
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;32.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<u>Estoppel Certificates</U>:</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Landlord
and Tenant agree that at any time, and from time to time, upon not less than seven (7)
days prior notice by the other, it will execute, acknowledge, and deliver to the other a
statement in writing certifying that this Lease is unmodified and in full force and effect
(or if there have been modifications, that the same is in full force and effect as
modified, and stating the modifications) and the dates to which the rent and other charges
have been paid in advance, if any, and stating whether or not, to the best knowledge of
the signer of such certificate the other party is in default in the performance of any
covenant, agreement or condition contained in this Lease and, if so, specifying each such
default of which the signer may have knowledge, it being intended that any such statement
delivered hereunder may be relied upon by any third party not a party to this Lease. The
form of Tenant Estoppel Certificate that Tenant is required to complete is attached as
<U>Exhibit D</U>. </FONT></P>

<!-- MARKER FORMAT-SHEET="ARTICLE -TNR" FSL="Workstation" -->
<A NAME=A041></A>
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;33.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Landlord&#146;s
Liability</U>:</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In any action brought to enforce
the obligations or liabilities of Landlord under this Lease, any judgment or
decree shall be enforceable against Landlord only to the extent of
Landlord&#146;s interest in the Premises, and no such judgment shall be the
basis of execution on, or be a lien on, assets of Landlord other than
Landlord&#146;s interest in the Premises. </FONT></P>

<!-- MARKER FORMAT-SHEET="ARTICLE -TNR" FSL="Workstation" -->
<A NAME=A042></A>
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;34.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Hazardous
Materials</U>:</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Landlord accepts that
Tenant&#146;s business requires use and storage of substances defined as
&#147;Hazardous Materials&#148; including but not exclusively chemicals,
preservatives, drug substances, solvents, fuels, insulation, radioactive
materials, metals, flammable substances, compressed and liquefied gases,
biological substances, and medical wastes. Unless used, manufactured, released,
stored, or disposed of in performance of Tenant&#146;s business, Tenant, its
employees, licensees, invitees, agents and contractors shall not use,
manufacture, release, store or dispose of on, under or about the Premises any of
the aforementioned substances, explosives, asbestos, paint containing lead,
materials containing urea formaldehyde, polychlorinated biphenyls, or any other
hazardous, toxic or dangerous substances, wastes or materials, whether having
such characteristics in fact or defined as such under federal, state or local
laws or regulations and any amendments thereto (all such materials and
substances being hereinafter included as &#147;Hazardous Materials&#148;). In
addition to those materials required by Tenant&#146;s business, Tenant may store
products which are of a type customarily found in offices (such as toner for
copiers and the like). All the aforementioned substances will be used,
manufactured, released, stored and disposed of in a careful, safe and lawful
manner and without contaminating the Premises, the Building, the Property or the
environment. If the Tenant breaches the obligations stated in this section 34,
then the Tenant shall indemnify, defend and hold the Landlord harmless from and
against any and all claims, judgments, damages, penalties, fines, costs,
liabilities or losses (including, without limitation, diminution in value of the
Premises, and the Building generally, damages for the loss or restriction on use
of rentable or usable space or of any amenity of the Building generally, damages
from any adverse impact on marketing of space in the Building, and sums paid in
settlement of claims, attorneys&#146; fees, consultant fees and expert fees)
which arise during or after the Term as a result of such contamination. This
indemnification of the Landlord by the Tenant includes, without limitation,
costs incurred in connection with any investigation of site conditions or any
cleanup, remedial, removal or restoration work required by any governmental
authority because of Hazardous Material present in the Premises or the Building
generally as a result of Tenant&#146;s, its agents, employees contractors,
servants, licensees, suppliers, or invitees&#146; use of the Premises.
</FONT></P>


<BR>
<BR>
<BR>
<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=1>
19</FONT></P>

<PAGE>



<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;35.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Security</U>:</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tenant
will be allowed to install and maintain its own security system within the Premises, at
Tenant&#146;s sole cost and expense. </FONT></P>

<!-- MARKER FORMAT-SHEET="ARTICLE -TNR" FSL="Workstation" -->
<A NAME=A043></A>
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;36.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Broker
Commission</U>:</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each
party hereto hereby represents and warrants to the other that in connection with the
leasing of the Premises hereunder, the party so representing and warranting has not dealt
with any real estate broker, agent or finder. Each party hereto shall indemnify the other
against any inaccuracy in such party&#146;s representation. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;37.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<U>Authority</U>:</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Default" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
the Tenant is a corporation, partnership, limited liability company or similar entity, the
person executing this Lease on behalf of the Tenant represents and warrants that (a) the
Tenant is duly organized and validly existing and (b) this Lease (i) has been authorized
by all necessary parties, (ii) is validly executed by an authorized officer or agent of
the Tenant and (iii) is binding upon and enforceable against the Tenant in accordance with
its terms. Landlord represents and warrants that (a) Landlord is duly organized and
validly existing and (b) this Lease (i) has been authorized by all necessary parties, (ii)
is validly executed by an authorized officer or agent of the Landlord and (iii) is binding
upon and enforceable against the Landlord in accordance with its terms. </FONT></P>



<BR>
<BR>
<BR>
<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=1>
20</FONT></P>

<PAGE>




<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Default" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF, the parties
hereto, by the properly authorized persons and with an intention to sign under
seal, have duly executed this Lease the day and year first above written.
</FONT></P>

<!-- MARKER FORMAT-SHEET="Signature Block" FSL="Workstation" -->
<TABLE WIDTH=100% CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=60%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
WITNESS or ATTEST:<BR>
<BR>
<BR>
<BR>
<BR>
<BR>
<HR WIDTH=250 ALIGN=LEFT>
<BR>
<BR>
<BR>
<BR>
<BR>
WITNESS or ATTEST:<BR>
<BR>
<BR>
<BR>
<BR>
<BR>
<BR>
<HR WIDTH=250 ALIGN=LEFT>
</FONT></TD>
<TD WIDTH=40%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
LANDLORD:<BR>
<BR>
300 W. FAYETTE STREET, LLC,<BR>
a Delaware limited liability company<BR>
<BR>
By:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(SEAL)<HR>
Name:<hR>
Title:<hR>
<BR>
TENANT:<BR>
<BR>
BASI MARYLAND, INC.<BR>
<BR>
<BR>
<BR>
By:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(SEAL)<HR>
Name:<hR>
Title:&nbsp;&nbsp;President<hR>
</font></TD>
</TR>
</TABLE>
<BR>









<BR>
<BR>
<BR>
<P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=1>
21</FONT></P>

<PAGE>




<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
STATE OF MARYLAND; CITY/COUNTY OF _______________, TO WIT:
</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I HEREBY CERTIFY that on this
____ day of _________________, before me, the undersigned Notary Public of the
state and county aforesaid, personally appeared ______________________ who
acknowledged himself to be the ___________________ of 300 W.&nbsp;Fayette
Street, LLC, and that he, being authorized so to do executed the foregoing
instrument for the purposes and in the capacity therein contained. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WITNESS my hand and Notarial
Seal. </FONT></P>


<!-- MARKER FORMAT-SHEET="Signature Block" FSL="Workstation" -->
<TABLE WIDTH=100% CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=60%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;</FONT></TD>
<TD WIDTH=40%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<HR>Notary Public<BR>
My commission expires:
</font></TD>
</TR>
</TABLE>
<BR>





<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
STATE OF INDIANA; CITY/COUNTY OF TIPPECANOE, TO WIT:</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I HEREBY CERTIFY that on this
________ day of _________________, before me, the undersigned Notary Public of
the state and county aforesaid, personally appeared ________________ who
acknowledged himself to be the ________________ of BASI Maryland, Inc., and that
he, being authorized so to do executed the foregoing instrument for the purposes
and in the capacity therein contained. </FONT></P>


<!-- MARKER FORMAT-SHEET="Signature Block" FSL="Workstation" -->
<TABLE WIDTH=100% CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=60%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;</FONT></TD>
<TD WIDTH=40%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<HR>Notary Public<BR>
My commission expires:
</font></TD>
</TR>
</TABLE>
<BR>

</BODY>
</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.5
<SEQUENCE>6
<FILENAME>creditagreement.htm
<DESCRIPTION>AMENDED & RESTATED CREDIT AGREEMENT
<TEXT>
<HTML>
<HEAD>
<TITLE>Amended and Restated Credit Agreement</TITLE>
</HEAD>
<BODY>


<hr>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=4>
<b>A<small>MENDED AND</small> R<small>ESTATED</small> C<small>REDIT</small>
A<small>GREEMENT</small></b></FONT></P>
<HR><BR>
<BR>
<BR>
<BR>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
between<BR>
<BR>
<BR>
<BR>
B<small>IOANALYTICAL</small> S<small>YSTEMS</small>, I<small>NC</small>.<BR>
<BR>
<BR>
<BR>
and<BR>
<BR>
<BR>
<BR>
N<small>ATIONAL</small> C<small>ITY</small> B<small>ANK</small> <small>OF</small> I<small>NDIANA</small><BR>
<BR>
<BR>
<BR>
<BR>
<BR>
<BR>
<BR>
<BR></FONT></P>
<HR>
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Dated as of January 4, 2005</FONT></P>
<hr>

<BR>
<BR>
<BR>
<hr>
<PAGE>



<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
<b>T<small>ABLE OF</small> C<small>ONTENTS</small></b></FONT></P>


<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 ALIGN=Center WIDTH=100%>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=12% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Article 1</FONT></TD>
     <TD WIDTH=84% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Definitions</FONT></TD>
     <TD WIDTH=4% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Section 1.1</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Defined Terms</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Section 1.2</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Rules of Construction</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>17&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Section 1.3</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Accounting Terms</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>18&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Article 2</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Credit</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>18&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Section 2.1</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Line of Credit Commitment</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>18&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Section 2.2</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Interest; Unused Fees and Rate Selection</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>18&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2.1</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Line of Credit - Interest</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>18&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2.2</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>General</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>18&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2.3</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Unused Fee/Reduction of Line of Credit Commitment</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>18&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2.4</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Interest Rate Selection &#151; Eurodollar Rate Option</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>19&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Section 2.3</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Payments of Principal and Interest</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>19&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3.1</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Line of Credit</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>19&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3.2</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Method of Payment</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>19&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3.3</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Banking Day</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>20&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Section 2.4</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Issuance of Letters of Credit</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>20&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Section 2.5</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Unconditional Reimbursement Obligation</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>21&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Section 2.6</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Risk of Misuse of Letter of Credit</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>21&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Section 2.7</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Prepayment/Exit Fee</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>22&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Section 2.8</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Use of Proceeds</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>22&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Section 2.9</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Method of Advance</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>22&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.9.1</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Line of Credit</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>22&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.9.2</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>General</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>23&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Section 2.10</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Taxes</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>23&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.10.1</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>General</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>23&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.10.2</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Tax Indemnity</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>23&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Section 2.11</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Yield Protection</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>23&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Section 2.12</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Changes in Capital Adequacy Regulations</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>24&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Section 2.13</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Funding Indemnification</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>25&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Section 2.14</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Availability of Types of Advances</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>25&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Section 2.15</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Bank Statements; Survival of Indemnity</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>25&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Article 3</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Security and Guaranty</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>25&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Section 3.1</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Security</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>25&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Section 3.2</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Addition of Guarantors; Addition of Pledged Capital Stock and other Collateral</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>26&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Section 3.3</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Additional Collateral/Setoff</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>26&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Article 4</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Representations and Warranties</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>27&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Section 4.1</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Due Organization</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>27&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Section 4.2</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Due Qualification</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>27&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Section 4.3</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Corporate Power</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>27&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Section 4.4</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Corporate Authority</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>27&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Section 4.5</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Financial Statements</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>27&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Section 4.6</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>No Material Adverse Change</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>27&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Section 4.7</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Subsidiaries</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>27&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Section 4.8</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Binding Obligations</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>27&nbsp;</FONT></TD></TR>
</TABLE>


<BR>
<BR>
<BR>
<hr>
<PAGE>





<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 ALIGN=Center WIDTH=100%>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=12% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Section 4.9</FONT></TD>
     <TD WIDTH=84% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Marketable Title</B></FONT></TD>
     <TD WIDTH=4% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>28&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Section 4.10</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Indebtedness</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>28&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Section 4.11</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Default</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>28&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Section 4.12</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Tax Returns</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>28&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Section 4.13</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Litigation</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>28&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Section 4.14</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>ERISA</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>28&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Section 4.15</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Full Disclosure</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>28&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Section 4.16</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Contracts of Surety</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>29&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Section 4.17</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Licenses</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>29&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Section 4.18</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Compliance with Law</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>29&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Section 4.19</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Force Majeure</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>29&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Section 4.20</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Margin Stock</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>29&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Section 4.21</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Approvals</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>29&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Section 4.22</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Insolvency</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>30&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Section 4.23</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Regulation</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>30&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Section 4.24</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Environmental Matters</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>30&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Section 4.25</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Conditions Precedent</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>32&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Section 4.26</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>General</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>32&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Article 5</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Covenants</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>32&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Section 5.1</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Negative Covenants</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>32&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.1</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Dispose of Collateral</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>32&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.2</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Further Encumber</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>32&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.3</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Conduct of Business; Subsidiaries; Acquisitions</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>32&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.4</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Purchase Stock</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>32&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.5</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Sell and Leaseback</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>33&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.6</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Borrowings/Subordinated Debt Payments</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>33&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.7</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Investments</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>33&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.8</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Guarantees</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>33&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.9</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Change Name or Place of Business</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>33&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.10</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Special Corporate Transactions</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>33&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.11</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Accounting Policies</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>33&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.12</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Change of Business</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>33&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.13</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Benefit Plans</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>33&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.14</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Adversity</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>34&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.15</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Dividends/Distributions</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>34&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.16</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Restrictive Agreements</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>34&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.17</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Transactions with Shareholders and Affiliates</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>34&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Section 5.2</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Affirmative Covenants</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>34&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2.1</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Financial Reporting</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>34&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2.2</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Good Standing</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>36&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2.3</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Taxes, Etc.</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>36&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2.4</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Maintain Properties</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>36&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2.5</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Insurance</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>37&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2.6</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Books and Records</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>37&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2.7</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Reports</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>37&nbsp;</FONT></TD></TR>
</TABLE>

<BR>
<BR>
<BR>
<hr>
<PAGE>





<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 ALIGN=Center WIDTH=100%>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=12% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2.8</FONT></TD>
     <TD WIDTH=84% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Licenses</B></FONT></TD>
     <TD WIDTH=4% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>37&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2.9</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Notice of Material Adverse Change</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>37&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2.10</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Compliance with Law</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>37&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2.11</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Trade Accounts</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>38&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2.12</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Use of Proceeds</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>38&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2.13</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Loan Payments</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>38&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2.14</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Environmental Matters</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>38&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2.15</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Banking Relationship</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>38&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2.16</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Subordinated Debt</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>38&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Section 5.3</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Financial Covenants</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>38&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3.1</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Senior Debt Ratio</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>38&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3.2</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Fixed Charge Coverage Ratio</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>39&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3.3</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Tangible Capital Funds</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>39&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Article 6</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Conditions Precedent</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>39&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Section 6.1</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Conditions to Initial Advance</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>39&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1.1</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Authorization</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>39&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1.2</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Insurance</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>39&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1.3</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Loan Documents</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>39&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1.4</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Incumbency</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>39&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1.5</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Legal Matters</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>39&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1.6</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Borrowing Base, Etc</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>39&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1.7</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Opinions of Counsel</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>39&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1.8</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Landlord Waivers</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>40&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1.9</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>UCC Searches/Life Insurance Questionnaire</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>40&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1.10</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Fees</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>40&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1.11</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Regulation U</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>40&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1.12</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>No Default</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>40&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1.13</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Consents</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>40&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1.14</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Additional Documentation</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>40&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Section 6.2</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Conditions to Subsequent Advances</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>40&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2.1</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>No Default</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>40&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2.2</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Representations and Warranties</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>40&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2.3</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Legal Matters</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>40&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Section 6.3</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>General</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>40&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Article 7</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Default</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>41&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Article 8</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Remedy</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>42&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Section 8.1</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Acceleration</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>42&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Section 8.2</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Deposit to Secure Reimbursement Obligations</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>43&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Section 8.3</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Subrogation</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>43&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Section 8.4</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Remedy</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>43&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Section 8.5</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Preservation of Rights</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>43&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Article 9</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>General Provisions</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>43&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Section 9.1</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Benefit of Agreement</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>43&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Section 9.2</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Survival of Representations</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>44&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Section 9.3</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Governmental Regulation</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>44&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Section 9.4</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Conflict</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>44&nbsp;</FONT></TD></TR>
</table>


<BR>
<BR>
<BR>
<hr>
<PAGE>



<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 ALIGN=Center WIDTH=100%>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Section 9.5</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Choice of Law</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>44&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Section 9.6</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Headings</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>44&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Section 9.7</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Entire Agreement</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>44&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Section 9.8</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Expenses</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>44&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Section 9.9</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Indemnification</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>45&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Section 9.10</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Confidentiality</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>45&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Section 9.11</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Giving Notice</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>45&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Section 9.12</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Counterparts</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>45&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Section 9.13</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Incorporation by Reference</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>45&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Section 9.14</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Time of Essence</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>46&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Section 9.15</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>No Joint Venture</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>46&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Section 9.16</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Relationship of Parties; Release of Consequential Damages</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>46&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Section 9.17</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Severability</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>46&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Section 9.18</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Gender</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>46&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Section 9.19</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Waiver and Amendment</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>46&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Section 9.20</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Bank Not in Control</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>46&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;Section 9.21</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Waiver Of Jury Trial</B></FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>47&nbsp;</FONT></TD></TR>
</TABLE>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Schedule 1 Permitted Encumbrances<BR>
<BR>
Schedule 4.7 Subsidiaries<BR>
<BR>
Schedule 4.10 and 5.1.6 Other Indebtedness<BR>
<BR>
Schedule 4.13 Material Pending or Threatened Litigation<BR>
<BR>
Schedule 5.1.7 Existing Investments<BR>
<BR>
<BR>

Exhibit A &#151; Credit Note<BR>
<BR>
Exhibit B &#151; General Security Agreement<BR>
<BR>
Exhibit C &#151; Policy Assignment</FONT></P>

<BR>
<BR>
<BR>
<hr>
<PAGE>




<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Default" -->
<A NAME=A001></A>
<P ALIGN=CENTER>
<FONT FACE="Times New Roman, Times, Serif" SIZE=4>
<B>A<small>MENDED</small> <small>AND</small> R<small>ESTATED</small>
C<small>REDIT</small> A<small>GREEMENT</small></B></FONT></P>
<BR>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
T<small>HIS</small> A<small>MENDED AND</small> R<small>ESTATED</small>
C<small>REDIT</small> A<small>GREEMENT</small>, dated as of January 4, 2005, is
between B<small>IOANALYTICAL</small> S<small>YSTEMS</small>, I<small>NC</small>.
and N<small>ATIONAL</small> C<small>ITY</small> B<small>ANK</small>, as
successor to T<small>HE</small> P<small>ROVIDENT</small>
B<small>ANK</small>.</FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Workstation" -->
<A NAME=A002></A>
<P ALIGN=CENTER>
<FONT FACE="Times New Roman, Times, Serif" SIZE=2>
WITNESSETH:</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W<small>HEREAS</small>,
as of October 29, 2002, the parties hereto entered into a Credit Agreement, as amended
(the &#147;<B>Original Agreement</B>&#148;); </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;W<small>HEREAS</small>, the
parties hereto desire to completely amend and restate the Original Agreement;
</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Default" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;N<small>OW</small>
T<small>HEREFORE</small>, in consideration of the premises, and the mutual
premises herein contained, the parties hereto agree that the Original Agreement
be, and it hereby is, amended and restated as follows: </FONT></P>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
Article 1&nbsp;&nbsp;&nbsp;&nbsp;D<small>EFINITIONS</small></FONT></P>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section
1.1&nbsp;&nbsp;&nbsp;&nbsp;<B>Defined Terms</B>.&nbsp;&nbsp;&nbsp;&nbsp;As used
herein:</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Accounts&#148;,
&#147;Chattel Paper&#148;, &#147;Deposit Accounts&#148;, &#147;Documents&#148;,
&#147;Equipment&#148;, &#147;Fixtures&#148;, &#147;General Intangibles&#148;,
&#147;Goods&#148;, &#147;Instruments&#148;, &#147;Inventory&#148;</B> and
<B>&#147;Proceeds&#148;</B> shall have the meanings ascribed in the Security
Agreement. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Acquisition</B>&#148; means
any transaction, or any series of related transactions, consummated on or after
the date of this Agreement, by which Borrower or any of its Subsidiaries (a)
acquires any going business or all or substantially all of the assets of any
firm, corporation or division thereof, whether through purchase of assets,
merger or otherwise or (b) directly or indirectly acquires (in one transaction
or as the most recent transaction in a series of transactions) at least a
majority (in number of votes) of the securities of a corporation which have
ordinary voting power for the election of directors (other than securities
having such power only by reason of the happening of a contingency) or a
majority (by percentage of voting power) of the outstanding equity interests of
another Person. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Advance</B>&#148;
means a disbursement of proceeds of the Facilities. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Affiliate</B>&#148; means,
with respect to any Person, any other Person (a) directly or indirectly through
one or more intermediaries, controlling, controlled by, or under common control
with, such Person, or (b) that directly or indirectly owns more than Ten Percent
(10%) of any class of the voting securities or capital stock of or equity
interests in such Person. A Person shall be deemed to control another Person if
such Person possesses, directly or indirectly, the power to direct or cause the
direction of the management and policies of such other Person, whether through
the ownership of voting securities, by contract or otherwise. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Agreement</B>&#148;
means this Amended and Restated Credit Agreement, as amended from time to time. </FONT></P>



<BR>
<BR>
<BR>
<hr>
<PAGE>



<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Default" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Applicable
Fee</B>&#148; means the per annum fee payable to Bank, which shall be determined
by reference to the following table: </FONT></P>


<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 ALIGN=Center WIDTH=60%>
<TR VALIGN=Bottom>
<TH COLSPAN=1><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Applicable Fee<BR>
for Non-Use Fees</FONT><HR WIDTH=85% SIZE=1 COLOR=BLACK NOSHADE></TH>
<TH COLSPAN=1><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Applicable Fee for<BR>
Standby Letters of Credit</FONT><HR WIDTH=85% SIZE=1 COLOR=BLACK NOSHADE></TH>
<TH COLSPAN=1><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Applicable Fee for<BR>
Commercial Letters of<BR>
Credit</FONT><HR WIDTH=85% SIZE=1 COLOR=BLACK NOSHADE></TH></TR>

<TR VALIGN=Bottom>
<TD WIDTH=33% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>.25%</FONT>
</TD>

<TD WIDTH=33% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1.50%</FONT>
</TD>

<TD WIDTH=33% ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1.50%</FONT>
</TD></TR>

</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Default" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Applicable
Margin</B>&#148; means the incremental margin to be paid by Borrower on the Advances
hereunder, which margin shall be based on the Senior Debt Ratio and determined by
reference to the following table: </FONT></P>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 ALIGN=Center WIDTH=70%>
<TR VALIGN=Bottom>
     <TH COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>Senior Debt Ratio</U></FONT></TH>
     <TH COLSPAN=1><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TH>
     <TH COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Applicable Margin<BR>
for Prime<BR>
<U>Rate Advances</U></FONT></TH>
     <TH COLSPAN=1><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TH>
     <TH COLSPAN=2><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Applicable Margin<BR>
for Eurodollar<BR>
<U>Rate Advances</U></FONT></TH></TR>

<TR><TD>&nbsp;
</TD></TR>

<TR VALIGN=Bottom>
<TD WIDTH=25% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Equal to or greater</FONT></TD>
<TD WIDTH=1% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=6% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=25% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=1% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=6% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=25% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=6% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>than 2.75 to 1.0</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>.25%</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>3.00%</FONT></TD></TR>

<TR><TD>&nbsp;
</TD></TR>

<TR VALIGN=Bottom>
<TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Less than 2.75 to 1.0 and</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
<TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>equal to or greater</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
<TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>than 2.00 to 1.0</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-0-</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2.75%</FONT></TD></TR>

<TR><TD>&nbsp;
</TD></TR>

<TR VALIGN=Bottom>
<TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Less than 2.00 to 1.0</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>-0-</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2.50%</FONT></TD></TR>
</TABLE>


<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Applicable Margin shall
initially be determined based on a Senior Debt Ratio of greater than 2.75 to
1.0. The Applicable Margin shall be adjusted quarterly (upwards or downwards, as
appropriate) based upon the Senior Debt Ratio determined from the Financial
Statements for the immediately preceding fiscal quarter and upon the closing of
any permitted Acquisition. The adjustment (upwards or downwards, as
appropriate), if any, to the Applicable Margin shall be effective on the fifth
(5th) Banking Day after delivery of the Financial Statements. In the event Bank
has not received the required Financial Statements pursuant to Section 5.2.1
hereof within the time periods provided therein, the highest Senior Debt Ratio
set forth in the foregoing table shall be conclusively presumed to be correct
until the fifth (5th) Banking Day after Bank receives such Financial Statements,
at which time the Applicable Margin shall be adjusted based upon the Senior Debt
Ratio determined from such Financial Statements. In no event shall the
Applicable Margin be adjusted downward if there exists a Default on the date on
which such downward adjustment would otherwise become effective until such time
as the Default has been cured, waived or ceases to exist. The provisions of this
definition are not intended to, and shall not be construed to, authorize any
violation by Borrower of any financial covenant contained in Article 5 hereof or
to constitute a waiver thereof or any commitment by Bank to waive any violation
by Borrower of any financial covenant contained in Article 5 hereof. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Bank</B>&#148; means
National City Bank of Indiana, as successor to The Provident Bank, and its
successors and assigns. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Banking Day</B>&#148;
means a day on which the principal domestic office of Bank is open for the
purpose of conducting substantially all of its business activities, and, if the
applicable day relates to a Eurodollar Rate Advance, a notice with respect to a
Eurodollar Rate Advance, or a day on which dealings in U.S. dollar deposits are
carried on in the London interbank market and banks are open for business in
London. </FONT></P>



<BR>
<BR>
<BR>
<hr>
<PAGE>


<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Borrower</B>&#148;
means Bioanalytical Systems, Inc., an Indiana corporation. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Borrowing
Base</B>&#148; means, on any date of determination, an amount equal to (a)
Eighty Percent (80%) of Borrower&#146;s Eligible Accounts, <B>plus</B> (b) the
lesser of (i) Fifty Percent (50%) of Borrower&#146;s raw materials and finished
goods Eligible Inventory or (ii) Forty Percent (40%) of Borrower&#146;s Eligible
Accounts, <B>plus</B> (c) the sum of (i) Nine Hundred Thousand Dollars
($900,000), <B>minus</B> (ii) the sum of (A) Twenty-Five Thousand Dollars
($25,000), multiplied by (B) as of any relevant date, the number of full
calendar months that have elapsed after the month of December 2004. (For
example, in June, 2005, the amount added as part of the Borrowing Base under
clause (c) above will be Nine Hundred Thousand Dollars ($900,000) <B>minus</B>
One Hundred Twenty-Five Thousand Dollars ($125,000) (five times Twenty-Five
Thousand Dollars ($25,000)), or a total of Seven Hundred Seventy-Five Thousand
Dollars ($775,000)). </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Capitalized
Expenditures</B>&#148; means, without duplication, any expenditures for any
purchase or other acquisition of any asset which would be classified as a fixed
or capital asset on a balance sheet of Borrower prepared in accordance with
GAAP.
</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Capitalized
Lease</B>&#148; means any lease of property which would be capitalized on a
financial statement of a Person prepared in accordance with GAAP. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Capitalized Lease
Obligations</B>&#148; means the amount of the obligations of a Person under
Capitalized Leases which are shown as liabilities on a balance sheet of such
Person prepared in accordance with GAAP. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>CERCLA</B>&#148; means
the Comprehensive Environmental Response, Compensation and Liability Act of
1980, as amended. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>CERCLIS</B>&#148; means
the Comprehensive Environmental Response Compensation Liability Information
System List under CERCLA. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Change</B>&#148; shall have
the meaning ascribed thereto in Section 2.12 hereof. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Change in
Control</B>&#148; means (a) the acquisition by any Person or two or more Persons
acting in concert (other than (i) current shareholders of Borrower as of the
date of this Agreement and their respective legal heirs and any trusts created
for the benefit of such Persons or (ii) any employee or director benefit plan or
stock plan of Borrower or any trustee or fiduciary with respect to any such plan
when acting in that capacity or any trust related to any such plan), of
beneficial ownership (within the meaning of Rule 13d-3 of the Securities and
Exchange Commission under the Securities Exchange Act of 1934) of twenty percent
(20%) or more of the outstanding shares of voting stock of Borrower; or (b) the
occurrence during any period of twelve (12) consecutive months, commencing
before or after the date of this Agreement, pursuant to which individuals who on
the first day of such period were directors of Borrower (together with any
replacement or additional directors who were nominated or elected by
Borrower&#146;s nominating committee or by a majority of directors then in
office) cease to constitute a majority of the Board of Directors of Borrower.
</FONT></P>


<BR>
<BR>
<BR>
<hr>
<PAGE>




<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Code</B>&#148;
means the Internal Revenue Code of 1986, as amended, reformed or otherwise modified from
time to time. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Compliance
Certificate</B>&#148; means a Compliance Certificate, in the form prescribed by Bank, duly
executed by the chief executive or chief financial officer of Borrower. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Credit
Note</B>&#148; means the Replacement Promissory Note, in substantially the form of Exhibit A
hereto, duly executed by Borrower to Bank to evidence Advances under the Line of Credit,
including any amendment, modification, renewal, extension or replacement thereof. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Current
Assets</B>&#148; means all assets of a Person which would, in accordance with GAAP, be
classified as current assets of an entity conducting a business the same as or similar to
that of such Person. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Current
Liabilities</B>&#148; means all liabilities of a Person which would, in accordance with GAAP,
be classified as current liabilities of an entity conducting a business the same as or
similar to that of such Person, including, without limitation, all lease rental payments
and all fixed prepayments of and sinking fund payments with respect to any Indebtedness
required to be made within one (1) year from the date of determination. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Default</B>&#148;
means any of the events specified in Article 7 hereof. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>EBITDA</B>&#148; means,
as of any date of determination, with respect to Borrower, the sum of (a) net
income, <B>plus</B> (b) to the extent deducted in determining net income, income taxes
paid or accrued, <B>plus</B> (c) depreciation, amortization and other non-cash charges
shown as a charge against earnings for such period, <B>minus (plus)</B> (d) to the
extent included (deducted) in determining net income, any gain (loss) which may
be treated as an extraordinary item under GAAP or realized upon the sale or
other disposition of any Property that is not sold in the ordinary course of
business, <B>plus</B> (e) interest expense, <B>minus</B> (f) interest income; in each instance
determined for the trailing four (4) quarter period ending on the date of
determination. EBITDA shall be calculated in accordance with GAAP and determined
from the Financial Statements. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Eligible
Accounts</B>&#148; means, on any date of determination, all Accounts then owned
by Borrower, which conforms with the representations and warranties set forth in
Borrower&#146;s Security Agreement and which is not subject to any prior Lien,
except (a) Accounts outstanding more than ninety (90) days from the date of
invoice; (b) all Accounts of any account debtor if Twenty Percent (20%) or more
of the amount owing by such account debtor is more than ninety (90) days past
due from the date of invoice; (c) all Accounts of the account debtor which Bank
reasonably deems unacceptable because of the credit-worthiness of the account
debtor; (d) Accounts of account debtors who are also creditors of Borrower to
the extent of the amount owed to such account debtors; (e) Accounts owned by
account debtors who are Affiliates of Borrower; (f) Accounts for uncompleted
sales, including pre-billings, consignment sales, and guaranteed sales; (g)
progress billings other than a portion of a sale pursuant to a purchase order
which has been shipped and has been recorded as an Account; (h) Accounts of
account debtors who are Governmental Authorities, unless proper assignments to
Bank have been completed; (i) Accounts not denominated in U.S. Dollars; (j)
Accounts of account debtors who are non-residents of the United States, unless
collateralized by an acceptable letter of credit or guaranty, and other than
large foreign pharmaceutical companies having a rating of &#147;<B>A-or
better</B>&#148; by S &amp; P or &#147;<B>A-3 or better</B>&#148; by Moody&#146;s; (k)
Accounts with respect to which the account debtor is located in Minnesota (or
any other jurisdiction which adopts a statute or other requirement with respect
to which any Person that obtains business from within such jurisdiction or is
otherwise subject to such jurisdiction&#146;s tax law requiring such Person to
file a Business Activity Report or make any other required filings in a timely
manner in order to enforce its claims in such jurisdiction&#146;s courts or
arising under such jurisdiction&#146;s laws); provided, however, such
receivables shall nonetheless be eligible if Borrower has filed a Business
Activity Report (or other applicable report or filing) with the applicable state
office by the time required or is qualified to do business in such jurisdiction
and, at the time the receivable was created, was qualified to do business in
such jurisdiction or had on file with the applicable state office a current
Business Activity Report (or other applicable report or filing); (l) Accounts to
such extent such Accounts are subject to known payments, adjustments or credits;
and (m) Accounts, or any portion thereof, which are considered uncollectible for
any reason, including, without limitation, Inventory returned, rejected,
repossessed, lost or damaged. </FONT></P>


<BR>
<BR>
<BR>
<hr>
<PAGE>




<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Eligible
Inventory</B>&#148; means, on any date of determination, that portion of
Inventory owned by Borrower consisting of raw materials and finished goods (i)
on which Bank has a first (1st) and prior lien, (ii) which conforms with the
representations and warranties set forth in Borrower&#146;s Security Agreement,
(iii) which is not obsolete or slow moving, (iv) which is not in transit, (v)
which is not placed on consignment, (vi) which is not stored with any bailee,
warehouseman or other party, (vii) which is not work-in-process, (viii) which is
not supply Inventory or live Inventory, and (ix) which Bank has not otherwise
reasonably determined unacceptable. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Environmental
Laws</B>&#148; means all provisions of laws, statutes, ordinances, rules,
regulations, permits, licenses, judgments, writs, injunctions, decrees, orders,
awards and standards promulgated by any Governmental Authority concerning the
protection of, or regulation of the discharge of substances into, the
environment or concerning the health or safety of persons with respect to
environmental hazards, and includes, without limitation, the Hazardous Materials
Transportation Act, 42 U.S.C. &sect;1801 et seq., the Comprehensive
Environmental Response, Compensation and Liability Act of 1980, as amended by
the Superfund Amendments and Reauthorization Act of 1986, 42 U.S.C.
&sect;&sect;9601 et seq., the Solid Waste Disposal Act, as amended by the
Resource Conservation and Recovery Act of 1976 and the Solid and Hazardous Waste
Amendments of 1984, 42 U.S.C. &sect;&sect;6901 et seq., the Federal Water
Pollution Control Act, as amended by the Clean Water Act of 1977, 33 U.S.C.
&sect;&sect;1251 et seq., the Clean Air Act of 1966, as amended, 42 U.S.C.
&sect;&sect;7401 et seq., the Toxic Substances Control Act of 1976, 15 U.S.C.
&sect;&sect;2601 et seq., the Federal Insecticide, Fungicide, and Rodenticide
Act, 7 U.S.C. &sect;7401 et seq., the Occupational Safety and Health Act of
1970, as amended, 29 U.S.C. &sect;&sect;651 et seq., the Emergency Planning and
Community Right-to-Know Act of 1986, 42 U.S.C. &sect;&sect;11001 et seq., the
National Environmental Policy Act of 1975, 42 U.S.C. &sect;&sect;4321 et seq.,
the Safe Drinking Water Act of 1974, as amended, 42 U.S.C. &sect;&sect;300(f) et
seq., and any similar or implementing state law, and all amendments, rules, and
regulations promulgated thereunder. </FONT></P>


<BR>
<BR>
<BR>
<hr>
<PAGE>



<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>ERISA</B>&#148; means
the Employee Retirement Income Security Act of 1974, as amended from
time-to-time. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>ERISA</B>
Affiliate&#148; means any trade or business, whether or not incorporated, which
together with the subject Person would be treated as a single employer under
ERISA. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Eurodollar Base
Rate</B>&#148; means, with respect to a Eurodollar Rate Advance for any
specified Interest Period, the applicable British Bankers&#146; Association
Interest Settlement Rate for deposits in U.S. dollars appearing on Reuters
Screen FRBD as of 11:00 a.m. (London time) two (2) Banking Days prior to the
first day of such Interest Period, and having a maturity equal to such Interest
Period, provided that, (a) if Reuters Screen FRBD is not available to Bank for
any reason, the applicable Eurodollar Base Rate for the relevant Interest Period
shall instead be the applicable British Bankers&#146; Association Interest
Settlement Rate for deposits in U.S. dollars as reported by any other generally
recognized financial information service as of 11:00 a.m. (London time) two (2)
Banking Days prior to the first day of such Interest Period, and (b) if no such
British Bankers&#146; Association Interest Settlement Rate is available to Bank,
the applicable Eurodollar Base Rate for the relevant Interest Period shall
instead be the rate determined by Bank, in its sole discretion, to be the rate
at which deposits in U.S. Dollars are offered to first-class banks in the London
interbank market at approximately 11:00&nbsp;a.m. (London time) for the relevant
Interest Period two Banking Days prior to the first day of such Interest Period.
Such determination by Bank shall be presumed correct absent manifest error.
</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Eurodollar Rate</B>&#148;
means, with respect to a Eurodollar Rate Advance for the relevant Interest
Period, the Eurodollar Base Rate applicable to such Interest Period <B>plus</B> the
then Applicable Margin. The Eurodollar Rate shall be rounded to the next higher
multiple of 1/100 of 1% if the rate is not such a multiple. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Eurodollar Rate
Advance</B>&#148; means an Advance which bears interest at the Eurodollar Rate.
</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Facilities</B>&#148; means the
Line of Credit, and any other credit facility provided by Bank from time to time
pursuant to this Agreement.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Financial Contract</B>&#148;
of a Person means (a) any exchange-traded or over-the-counter futures, forward,
swap or option contract or other financial instrument with similar
characteristics, (b) any agreements, devices or arrangements providing for
payments related to fluctuations of interest rates, exchange rates or forward
rates, including, but not limited to, interest rate exchange agreements, forward
currency exchange agreements, interest rate cap or collar protection agreements,
forward rate currency or interest rate options, or (c) to the extent not
otherwise included in the foregoing, any Rate Hedging Agreement. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Financial
Statements</B>&#148; means, as the context may require, (a) the financial statements of
Borrower as of June 30, 2004, and/or (b) the similar financial statements of Borrower
furnished from time to time pursuant to Section 5.2.1 hereof; in all cases together with
any accompanying notes or other disclosures to such financial statements, and any other
documents or data furnished to Bank in connection therewith. </FONT></P>


<BR>
<BR>
<BR>
<hr>
<PAGE>




<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Fixed Charge Coverage
Ratio</B>&#148; means, with respect to Borrower, (a) the sum of (i) EBITDA,
<B>minus</B> (ii) Unfunded Capital Expenditures, <B>minus</B> (iii) taxes paid,
<B>divided by</B> (b) the sum of (i) interest expense, <B>plus</B> (ii)
mandatory payments of all long term Indebtedness, in each instance determined
for the trailing four (4) quarter period ending on the date of determination,
except that for the four (4) quarter period ending December 31, 2004, Unfunded
Capital Expenditures shall be reduced by Five Hundred Thousand Dollars
($500,000). The Fixed Charge Coverage Ratio shall be determined from the
Financial Statements. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>GAAP</B>&#148; means
generally accepted accounting principles in the United States of America in
effect from time to time as promulgated by the Financial Accounting Standards
Board and recognized and interpreted by the American Institute of Certified
Public Accountants. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Governmental
Authority</B>&#148; means any nation or government, any state or other political
subdivision thereof, and any entity exercising executive, legislative, judicial,
regulatory or administrative functions of or pertaining to any government,
including, without limiting the generality of the foregoing, any agency, body,
commission, court or department thereof whether federal, state, local or
foreign. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Guarantors</B>&#148;
means any U.S. Subsidiaries of Borrower. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Guaranty</B>&#148;
means any Guaranty duly executed by a U.S. Subsidiary of Borrower, in the form
prescribed by Bank, including any amendment or modification thereof. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Hazardous
Materials</B>&#148; mean (a) any &#147;<B>hazardous substance</B>,&#148; as defined by
CERCLA, (b) any &#147;<B>hazardous waste</B>,&#148; as defined by the Resource
Conservation and Recovery Act, as amended, (c) any petroleum product, or (d) any
pollutant or contaminant or hazardous, dangerous or toxic chemical, material or
substance within the meaning of any other federal, state or local law,
regulation, ordinance or requirement (including consent decrees and
administrative orders) relating to, or imposing liability or standards of
conduct concerning, any hazardous, toxic or dangerous waste, substance or
material, all as amended or hereafter amended. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Indebtedness</B>&#148;
of a Person means such Person&#146;s (a) obligations for borrowed money, (b)
obligations representing the deferred purchase price of Property or services
(other than trade payables arising in the ordinary course of such Person&#146;s
business payable on terms customary in the trade), (c) obligations, whether or
not assumed, secured by any Lien upon or in Property owned by the subject Person
or payable out of the proceeds or production from Property now or hereafter
owned or acquired by such Person, (d) obligations which are evidenced by notes,
acceptances, or other instruments, (e) Capitalized Lease Obligations, (f)
indebtedness or other obligations of any other Person for borrowed money or for
the deferred purchase price of property or services, the payment or collection
of which the subject Person has guaranteed (except by reason of endorsement for
collection in the ordinary course of business) or in respect of which the
subject Person is liable, contingently or otherwise, including, without
limitation, liability by way of agreement to purchase, to provide funds for
payment, to supply funds to or otherwise to invest in such other Person, or
otherwise to assure a creditor against loss, (g) reimbursement or other
obligations in connection with letters of credit, (h) obligations in connection
with Sale and Leaseback Transactions, (i) any Net Mark-To-Market Exposure of
Rate Hedging Agreements or other Financial Contracts, and (j) any other
transaction which is the functional equivalent of, or takes the place of
borrowing, but which would not constitute a liability on a balance sheet of such
Person prepared in accordance with GAAP. </FONT></P>


<BR>
<BR>
<BR>
<hr>
<PAGE>




<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Intercreditor
Agreement</B>&#148; means the Intercreditor Agreement dated October 29, 2002 between Union
Planters Bank, National Association and Bank, as amended from time to time. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Interest
Period</B>&#148; means, with respect to a Eurodollar Rate Advance, a period of one (1), two
(2) or three (3) months commencing on a Banking Day selected by Borrower pursuant to this
Agreement. Such Interest Period shall end on (but exclude) the day which corresponds
numerically to such date one, two or three months thereafter; provided, however, that if
there is no such numerically corresponding day in such next, second or third succeeding
month, such Interest Period shall end on the last Banking Day of such next, second or
third succeeding month, as the case may be. If an Interest Period would otherwise end on a
day which is not a Banking Day, such Interest Period shall end on the next succeeding
Banking Day; provided, however, that if said next succeeding Banking Day falls in a new
calendar month, such Interest Period shall end on the immediately preceding Banking Day. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Investments</B>&#148;
of a Person means any loan, advance (other than commission, travel and similar
advances to officers and employees made in the ordinary course of business),
extension of credit (other than accounts receivable arising in the ordinary
course of business on terms customary in the trade) or contribution of capital
by such Person; stocks, bonds, mutual funds, partnership interests, notes,
debentures or other securities owned by such Person; any deposit accounts and
certificates of deposit owned by such Person; and structured notes, derivative
financial instruments and other similar instruments or contracts owned by such
Person. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Letters of
Credit</B>&#148; means all standby and commercial Letters of Credit now and
hereafter issued by Bank from time to time at the request of and for the account
of Borrower, including any renewal, replacement, substitution, extension or
modification thereof. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Lien</B>&#148; means
any lien (statutory or other), security interest, mortgage, pledge,
hypothecation, assignment for the purpose of security, deposit arrangement for
the purpose of security, encumbrance or preference, priority or other security
agreement of any kind or nature whatsoever (including, without limitation, the
interest of a vendor or lessor under any conditional sale, Capitalized Lease or
other title retention agreement). </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Line of
Credit</B>&#148; means the secured revolving line of credit to Borrower in the
maximum principal amount of Six Million Dollars ($6,000,000), governed by this
Agreement, including any renewal or extension thereof. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Line
of Credit Maturity Date</B>&#148; means December 31, 2007. </FONT></P>



<BR>
<BR>
<BR>
<hr>
<PAGE>




<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Loan
Documents</B>&#148; means this Agreement, the Credit Note, the Security
Agreement, the Policy Assignment, any Guaranty, any UCC Financing Statements and
all other documents executed and delivered by Borrower or the Subsidiaries to
govern, evidence or secure the Facilities. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Loss</B>&#148;
shall have the meaning ascribed in Section 9.9 hereof. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Material Adverse
Effect</B>&#148; means any event, circumstance or condition that could
reasonably be expected to have a material adverse effect on (a) the business,
operations, financial condition, Properties or prospects of Borrower and its
Subsidiaries, taken as a whole, (b) the ability of Borrower to perform the
Obligations, (c) the validity or enforceability of any of the Loan Documents, or
any material provision thereof or any material transaction contemplated thereby,
or (d) the rights and remedies of Bank under any of the Loan Documents.
</FONT></P>

<!-- MARKER FORMAT-SHEET="Head Sub 2 Left-TNR" FSL="Workstation" -->
<A NAME=A003></A>
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Moody</B>&#146;s&#148;
means Moody&#146;s Investors Service, Inc.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Net Mark-to-Market
Exposure</B>&#148; of a Person means, as of any date of determination, the
excess (if any) of all unrealized losses over all unrealized profits of such
Person arising from Rate Hedging Agreements, where &#147;<B>unrealized losses</B>&#148;
means the fair market value of the cost to such Person of replacing such Rate
Hedging Agreement as of the date of determination (assuming the Rate Hedging
Agreement were to be terminated as of that date), and &#147;<B>unrealized
profits</B>&#148; means the fair market value of the gain to such Person of
replacing such Rate Hedging Agreement as of the date of determination (assuming
such Rate Hedging Agreement were to be terminated as of that date). </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Net Worth</B>&#148;
means the excess of a Person&#146;s total assets over such Person&#146;s total
liabilities, as shown on the balance sheets furnished to Bank from time to time
pursuant to Section 5.2.1 hereof. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>New
Subsidiary</B>&#148; has the meaning ascribed thereto in Section 5.1.3 hereof.
</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Obligations</B>&#148;
means all unpaid principal and accrued and unpaid interest on the Credit Note,
actual and contingent reimbursement obligations under the Letters of Credit, all
accrued and unpaid fees hereunder, obligations of Borrower to Bank or an
affiliate of Bank in respect of any Rate Hedging Obligations, and all other
obligations, indemnities and liabilities of Borrower to Bank of every type and
description, direct or indirect, joint, several or joint and several, absolute
or contingent, arising in connection with the Facilities, due or to become due,
now existing or hereafter arising and whether or not contemplated by Borrower or
Bank as of the date hereof, including, without limitation, any Advances pursuant
to any amendment of this Agreement, all reasonable costs of collection and
enforcement of any and all thereof, including reasonable attorney fees.
</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Operating
Lease</B>&#148; of a Person means any lease of Property (other than a
Capitalized Lease) by such Person as lessee. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>PBGC</B>&#148; means the
Pension Benefit Guaranty Corporation established pursuant to ERISA, or any
successor entity. </FONT></P>



<BR>
<BR>
<BR>
<hr>
<PAGE>





<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Permissible
Increment</B>&#148; means a minimum principal amount of One Million Dollars
($1,000,000) and minimum increments of Five Hundred Thousand Dollars ($500,000)
above One Million Dollars ($1,000,000). </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Permitted
Encumbrances</B>&#148; means (a) Liens for taxes or assessments which are not
yet due, Liens for taxes or assessments or Liens of judgments which are being
contested, appealed or reviewed in good faith by appropriate proceedings which
prevent foreclosure of any such Lien or levy of execution thereunder and against
which Liens, if any, adequate insurance or reserves have been provided; (b)
pledges or deposits to secure payment of workers&#146; compensation obligations
and deposits or indemnities to secure public or statutory obligations or for
similar purposes; (c) those minor defects which in the opinion of Bank&#146;s
counsel do not materially affect title to the collateral for the Obligations;
(d) Liens in favor of Bank; (e) Liens imposed by law, such as carrier&#146;s,
warehousemen&#146;s and mechanic&#146;s liens and other similar Liens arising in
the ordinary course of business which secure payment of obligations not more
than sixty (60) days past due; (f) utility easements, building restrictions,
zoning ordinances and such other encumbrances or charges against real Property
as are of a nature generally existing with respect to real Properties of a
similar character and which do not in any material way affect the marketability
of the same or interfere with the use thereof in the business of Borrower; (g)
lessors&#146; interests under Capitalized Leases now existing; (h) subject to
the Intercreditor Agreement, the mortgage liens and assignment of rents in favor
of Union Planters Bank, National Association encumbering the UPB Priority
Collateral, as defined in the Intercreditor Agreement; and (i) those further
encumbrances (if any) shown on Schedule 1 attached hereto. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Person</B>&#148; means
and includes an individual, a partnership, a joint venture, a corporation, a
limited liability company, a trust, an unincorporated association and a
Governmental Authority. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Plan</B>&#148; means an
employee pension benefit plan which is covered by Title IV of ERISA or subject
to the minimum funding standards under Section 412 of the Code as to which a
Borrower may have any liability. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Policy
Assignment</B>&#148; means the Assignment of Life Insurance Policy as
Collateral, in substantially the form of <B>Exhibit C</B> hereto, duly executed by
Borrower to Bank to secure the Obligations, including any amendment or
modification thereof. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Prime Rate</B>&#148;
means the rate of interest quoted and announced as its prime rate by Bank,
through its usual and customary procedures as established from time to time by
Bank in its sole discretion with no responsibility to consult with or notify
Borrower in connection with any changes in such procedures or rate, and for any
specific time shall mean the prime rate then most recently announced as the
prime rate of Bank, changing when and as such prime rate changes. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Prime Rate
Advance</B>&#148; means any Advance when and to the extent that the interest
rate thereof is determined by reference to the Prime Rate. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Property</B>&#148; of a
Person means any and all property, whether real, personal, tangible, intangible,
or mixed, of such Person, or other assets owned, leased or operated by such
Person. </FONT></P>


<BR>
<BR>
<BR>
<hr>
<PAGE>




<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Qualified
Investments</B>&#148; means (a) short term obligations of, or fully guaranteed
by, the United States of America, (b) commercial paper rated A-1 or better by
S&amp;P or P-1 or better by Moody&#146;s, (c) demand deposit accounts maintained
in the ordinary course of business, and (d) certificates of deposit issued by
commercial banks having capital and surplus in excess of One Hundred Million
Dollars ($100,000,000). </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Rate Hedging
Agreement</B>&#148; means an agreement, device or arrangement providing for
payments which are related to fluctuations of interest rates, exchange rates or
forward rates, including, but not limited to, dollar-denominated or
cross-currency interest rate exchange agreements, forward currency exchange
agreements, interest rate cap or collar protection agreements, forward rate
currency or interest rate options, puts and warrants. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Rate Hedging
Obligations</B>&#148; of a Person means any and all obligations of such Person,
whether absolute or contingent and howsoever and whensoever created, arising,
evidenced or acquired (including all renewals, extensions and modifications
thereof and substitutions therefor), under (a) any and all Rate Hedging
Agreements, and (b) any and all cancellations, buy backs, reversals,
terminations or assignments of any Rate Hedging Agreement. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Rentals</B>&#148;
means, as of the last day of any fiscal quarter of Borrower, the aggregate
amount of rental expense (as determined in accordance with GAAP) under any
Operating Lease for the four (4) consecutive fiscal quarters ending on the date
of determination. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Reserves</B>&#148;
means the maximum reserve requirement, as prescribed by the Board of Governors
of the Federal Reserve System (or any successor) with respect to
&#147;<B>Eurocurrency liabilities</B>&#148; or in respect of any other category of
liabilities which includes deposits by reference to which the interest rate on
Eurodollar Rate Advances is determined or category of extensions of credit or
other assets which includes loans by a non-United States office of any Bank to
United States residents. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>S &amp; P</B>&#148;
means Standard and Poor&#146;s Ratings Services, a division of The McGraw Hill
Companies, Inc. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Sale and Leaseback
Transaction</B>&#148; means any sale or other transfer of any property by any
Person with the intent to lease such property as lessee. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Security
Agreement</B>&#148; means the Amended and Restated General Security Agreement,
in substantially the form of <B>Exhibit B</B> hereto, duly executed by Borrower in
favor of Bank to secure the Obligations, including any amendment or modification
thereof. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Senior Debt
Ratio</B>&#148; means, with respect to Borrower, as of the last day of any
fiscal quarter and as of the closing of any permitted Acquisition, the ratio of
(a) Indebtedness <B>minus</B> Subordinated Debt, <B>to</B> (b) EBITDA. The Senior Debt Ratio
shall be determined from the Financial Statements. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Subordinated
Debt</B>&#148; means Indebtedness of Borrower that is subordinated in writing to
the full, final and irrevocable payment of the Obligations, in form and
substance acceptable to Bank pursuant to either a Subordination Agreement or the
documents evidencing such Indebtedness, provided Bank has specifically agreed in
writing that such Indebtedness constitutes Subordinated Debt (which agreement
Bank will not unreasonably refuse to make, delay making, or make conditional
upon other terms). </FONT></P>


<BR>
<BR>
<BR>
<hr>
<PAGE>




<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Subordination
Agreement</B>&#148; means each Subordination Agreement executed by a holder of
Subordinated Debt, in the form prescribed by Bank, including any amendment or
modification thereof. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Subsidiaries</B>&#148;
means, as to any Person, (a) a corporation of which shares of stock having
ordinary voting power (other than stock having such power only by reason of the
happening of a contingency) to elect a majority of the Board of Directors or
other managers of such corporation are at the time owned, or the management of
which is otherwise controlled, directly or indirectly through one or more
intermediaries, or both, by such Person, and (b) any partnership, association,
joint venture or other entity in which such Person and/or one or more
Subsidiaries of such Person has more than a Fifty Percent (50%) equity interest.
</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Tangible Net
Worth</B>&#148; means on any date of determination, the amount by which (a) Net
Worth, exceeds (b) the sum of (i) all assets which would be classified as
intangible assets under GAAP, including, without limitation, goodwill (whether
representing the excess of cost over book value of assets acquired or
otherwise), patents, tradenames, copyrights, franchises, operating permits,
unamortized debt discount and expense, organization costs, and research and
development costs, (ii) treasury stock and minority interests in subsidiaries or
other entities, (iii) cash set apart and held in a sinking or other similar fund
established for the purpose of redemption or other retirement of capital stock,
and (iv) to the extent not otherwise deducted, reserves for depreciation,
depletion, obsolescence and/or amortization of properties and all other reserves
or appropriations of retained earnings which, in accordance with GAAP, should be
established in connection with the business conducted by the subject Person, and
(v) any revaluation or other write-up in book value of assets. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Taxes</B>&#148;
shall have the meaning ascribed in Section 2.10 hereof. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Type</B>&#148; means,
with respect to any Advance, its nature as a Prime Rate Advance or a Eurodollar
Rate Advance. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Unfunded Capital
Expenditures</B>&#148; means capital expenditures not funded by long term
Indebtedness, as shown on the balance sheet furnished to Bank from time to time
pursuant to Section 5.2.1 hereof. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Unmatured
Default</B>&#148; means any event which with notice, or lapse of time, or both,
would constitute a Default. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>U.S.
Subsidiary</B>&#148; means a Subsidiary organized or incorporated within the
United States of America or within any United States territories or
possessions.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
1.2&nbsp;&nbsp;&nbsp;&nbsp;<B>Rules of
Construction</B>.&nbsp;&nbsp;&nbsp;&nbsp;The foregoing definitions shall be
equally applicable to both the singular and plural forms of the defined terms.
Use of the terms <B>&#147;herein&#148; &#147;hereof&#148;</B>, and
<B>&#147;hereunder&#148;</B> shall be deemed references to this Agreement in its
entirety and not to the Section clause in which such term appears.</FONT></P>



<BR>
<BR>
<BR>
<hr>
<PAGE>



<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
1.3&nbsp;&nbsp;&nbsp;&nbsp;<B>Accounting Terms</B>.&nbsp;&nbsp;&nbsp;&nbsp;All
accounting terms not specifically defined herein shall be construed in
accordance with GAAP consistent with those applied in the preparation of the
Financial Statements.</FONT></P>

<!-- MARKER FORMAT-SHEET="ARTICLE -TNR" FSL="Workstation" -->
<A NAME=A004></A>
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
Article 2&nbsp;&nbsp;&nbsp;&nbsp;C<small>REDIT</small></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
2.1&nbsp;&nbsp;&nbsp;&nbsp;<B>Line of Credit
Commitment</B>.&nbsp;&nbsp;&nbsp;&nbsp;Subject to the terms and conditions of
this Agreement, Bank shall make Advances under the Line of Credit available to
Borrower in a maximum principal amount equal to the lesser of: (a) Six Million
Dollars ($6,000,000), or (b) the Borrowing Base. Advances under the Line of
Credit shall be evidenced by the Credit Note.</FONT></P>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
2.2&nbsp;&nbsp;&nbsp;&nbsp;<B>Interest; Unused Fees and Rate
Selection</B>.

</FONT></P><!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
               <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
                    <TR VALIGN=TOP>
                    <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
                    <TD WIDTH=95%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
                    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2.1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                    <B>Line of Credit &#151; Interest</B>.&nbsp;&nbsp;&nbsp;&nbsp;Prior to maturity or Default, the outstanding
                    principal balance of Advances under the Line of Credit shall bear interest at a
                    per annum rate equal to the Prime Rate <B>plus</B> the Applicable Margin, except that,
                    at the option of Borrower as exercised as provided in Section 2.2.4 hereof, the
                    outstanding principal balance of Advances under the Line of Credit in
                    Permissible Increments may accrue interest at the Eurodollar Rate. At the
                    expiration of each Interest Period, unless Borrower selects the Eurodollar Rate
                    option as provided in Section 2.2.4 hereof, interest shall again accrue at a per
                    annum rate equal to the Prime Rate <B>plus</B> the Applicable Margin.</FONT></DIV></TD>
                    </TR>
                    </TABLE>
                    <BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
               <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
                    <TR VALIGN=TOP>
                    <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
                    <TD WIDTH=95%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
                    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2.2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                    <B>General</B>.&nbsp;&nbsp;&nbsp;&nbsp;Interest shall be due and payable for the exact number of days
                    principal is outstanding and shall be calculated on the basis of a three hundred
                    sixty (360) day year. Any change in the interest rates occasioned by a change in
                    the Prime Rate shall be effective on the same day as the change in the Prime
                    Rate. After the maturity of any Facility, whether by acceleration or otherwise,
                    and while and so long as there shall exist any uncured Default, the Facilities
                    shall bear interest at a per annum rate equal to Four Percent (4%) above the
                    otherwise applicable rates.</FONT></DIV></TD>
                    </TR>
                    </TABLE>
                    <BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
               <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
                    <TR VALIGN=TOP>
                    <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
                    <TD WIDTH=95%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
                    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2.3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                    <B>Unused Fee/Reduction of Line of Credit Commitment</B>.&nbsp;&nbsp;&nbsp;&nbsp;Borrower shall pay to Bank
                    from and after the date hereof until the date on which Bank&#146;s commitment
                    under the Line of Credit is terminated in whole, an unused fee accruing at the
                    rate of the Applicable Fee per annum on the average daily unborrowed portion of
                    the Line of Credit <B>minus</B> outstanding Letters of Credit. All such unused fees
                    payable under this clause shall be payable quarterly in arrears on the last day
                    of each fiscal quarter of Borrower occurring after the date hereof (with the
                    first such payment being calculated for the period from the date hereof and
                    ending on March 31, 2005), and, in addition, on the date on which the
                    Bank&#146;s commitment under the Line of Credit is terminated in whole. Such
                    unused fee shall be calculated on the basis of the actual number of days elapsed
                    and a three hundred sixty (360) day year. Borrower may permanently reduce the
                    Bank&#146;s commitment under the Line of Credit, in whole or in part, in
                    integral multiples of One Million Dollars ($1,000,000), upon at least three (3)
                    Banking Days&#146; written notice to Bank, which notice shall specify the amount
                    of any such reduction; provided, however, that the amount of Bank&#146;s
                    commitment under the Line of Credit may not be reduced below the aggregate
                    principal amount outstanding thereunder.</FONT></DIV></TD>
                    </TR>
                    </TABLE>
                    <BR>

<BR>
<BR>
<BR>
<hr>
<PAGE>




<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
               <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
                    <TR VALIGN=TOP>
                    <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
                    <TD WIDTH=95%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
                    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2.4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                    <B>Interest Rate Selection &#150; Eurodollar Rate Option</B>.&nbsp;&nbsp;&nbsp;&nbsp;A Eurodollar Rate may be
                    elected only in accordance with the following procedures and subject to other
                    conditions contained in this Agreement:</FONT></DIV></TD>
                    </TR>
                    </TABLE>
                    <BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
               <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
                    <TR VALIGN=TOP>
                    <TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
                    <TD WIDTH=90%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
                    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                    No Eurodollar Rate may be elected at any time a Default or an Unmatured Default
                    exists.</FONT></DIV></TD>
                    </TR>
                    </TABLE>
                    <BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
               <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
                    <TR VALIGN=TOP>
                    <TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
                    <TD WIDTH=90%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
                    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                    Borrower shall notify Bank of its election or renewal of a Eurodollar Rate prior
                    to 11:00 a.m. (Indianapolis time) not less than three (3) Banking Days prior to
                    the commencement of the applicable Interest Period therefor specifying (i) the
                    election or renewal date, (ii) the amount of the Advance (or Advances taken
                    together) elected or renewed which amount shall be in a Permissible Increment,
                    and (iii) the duration of the Interest Period selected to apply thereto.</FONT></DIV></TD>
                    </TR>
                    </TABLE>
                    <BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
               <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
                    <TR VALIGN=TOP>
                    <TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
                    <TD WIDTH=90%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
                    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                    An election of a Eurodollar Rate may be communicated by telephone or by telex,
                    facsimile machine or other form of written electronic communication, or by a
                    writing delivered to Bank. Borrower shall confirm in writing any election
                    communicated by telephone. Bank shall be entitled to rely on any verbal
                    communication of the election of a Eurodollar Rate which is received by a
                    designated employee of Bank from anyone reasonably believed in good faith by
                    such employee to be authorized.</FONT></DIV></TD>
                    </TR>
                    </TABLE>
                    <BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
               <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
                    <TR VALIGN=TOP>
                    <TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
                    <TD WIDTH=90%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
                    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                    Not more than three (3) Eurodollar Rate Advances may be selected at any one time
                    to apply thereto.</FONT></DIV></TD>
                    </TR>
                    </TABLE>
                    <BR>

<!-- MARKER FORMAT-SHEET="ARTICLE -TNR" FSL="Workstation" -->
<A NAME=A006></A>
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
2.3&nbsp;&nbsp;&nbsp;&nbsp;<B>Payments of Principal and Interest</B>.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3.1. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Line
of Credit</B>.&nbsp;&nbsp;&nbsp;&nbsp;Interest only on the outstanding balance of
Advances under the Line of Credit from time to time throughout the term of the Line of
Credit shall be due and payable (a) on the last day of each calendar month with respect
to each Prime Rate Advance, and (b) on the last day of an applicable Interest Period with
respect to a Eurodollar Rate Advance. From time to time during the term of the Line of
Credit, Borrower shall make principal payments in an amount sufficient that the
outstanding principal balance of Advances under the Line of Credit shall not exceed the
Borrowing Base. The entire principal balance of Advances under the Line of Credit,
together with all accrued and unpaid interest thereon, and all fees and charges payable
in connection therewith, shall be due and payable on the Line of Credit Maturity Date.</FONT></DIV></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3.2. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Method
of Payment</B>.&nbsp;&nbsp;&nbsp;&nbsp;All payments of principal and interest hereunder
shall be made in immediately available funds to Bank at Bank&#146;s address set forth on
the signature page hereof or at any other place specified in writing by Bank to Borrower,
by Noon (Indianapolis time) on the date when due. Borrower authorizes Bank to charge the
account of Borrower maintained with Bank for each payment of principal, interest and fees
as it becomes due hereunder.</FONT></DIV></TD>
</TR>
</TABLE>
<BR>


<BR>
<BR>
<BR>
<hr>
<PAGE>




<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3.3. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Banking
Day</B>.&nbsp;&nbsp;&nbsp;&nbsp;If any installment of principal or interest provided
herein becomes due and payable on a date other than a Banking Day, the maturity of the
installment of principal or interest shall be extended to the next succeeding Banking
Day, and interest shall be payable during such extension of maturity.</FONT></DIV></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
2.4&nbsp;&nbsp;&nbsp;&nbsp;<B>Issuance of Letters of
Credit</B>.&nbsp;&nbsp;&nbsp;&nbsp;Subject to the terms and conditions hereof,
the Line of Credit, at the option of Borrower upon delivery of a proper Letter
of Credit Application, in the form prescribed by Bank, may also be utilized in
the form of Letters of Credit issued by Bank for the account of Borrower. Each
Letter of Credit shall have an expiration date not later than twelve (12) months
from the date of issuance. The aggregate of the Letters of Credit outstanding at
any time <B>plus</B> the aggregate amount of unreimbursed drawings under the Letters of
Credit shall not exceed the lesser of the unborrowed available portion of the
Line of Credit or Three Million Eight Hundred Thousand Dollars ($3,800,000). The
amount of any Letter of Credit outstanding at any time for all purposes hereof
shall be the maximum amount which could be drawn thereunder under any
circumstances from and after the date of determination. The Letters of Credit
and each unreimbursed drawing thereunder shall count against and reduce the
available amount under the Line of Credit by the amount of any Letter of Credit
outstanding unless and until such Letter of Credit expires by its terms or
otherwise terminates or the amount of a drawing thereunder is reimbursed, in
which event the Line of Credit shall be reinstated by the amount of such Letter
of Credit or the amount of such reimbursement, as the case may be. Each such
Letter of Credit shall conform to the general requirements of Bank for the
issuance of such credits, as to form and substance, shall be subject to the
Uniform Customs and Practices for Documentary Credits (1993 Revision)
International Chamber of Commerce Publication No. 500 or International Standby
Practices Publication 590 of the International Chamber of Commerce and shall be
a letter of credit which Bank may lawfully issue. If and to the extent a drawing
is at any time made under any Letter of Credit, Borrower agrees to pay to Bank
immediately and unconditionally upon demand for reimbursement, in lawful money
of the United States, an amount equal to each amount which shall be so drawn,
together with interest from the date of such drawing to and including the date
such payment is reimbursed to Bank or converted to an Advance under the Line of
Credit as provided herein. Until demand for reimbursement, such interest shall
be calculated at a variable per annum rate equal to the Prime Rate <B>plus</B> the
Applicable Margin, and interest shall be calculated after such demand at a
variable per annum rate equal to the Prime Rate <B>plus</B> the Applicable Margin <B>plus</B>
Four Percent (4%). All such interest shall be calculated on the basis that an
entire year&#146;s interest is earned in three hundred sixty (360) days. Bank
shall convert automatically the reimbursement obligations of Borrower arising
out of any such drawing into Advances under the Line of Credit so long as the
Line of Credit has not expired, and Borrower hereby irrevocably authorizes Bank
to refinance, without notice to Borrower, the reimbursement obligation of
Borrower arising out of any such drawing into Advances under the Line of Credit,
evidenced by the Credit Note and for all purposes under, on and subject to the
terms and conditions of this Agreement, without regard to the conditions
precedent to making an Advance under the Line of Credit or to any requirement of
this Agreement that each Advance be a minimal amount or multiple. This Agreement
and the other Loan Documents shall supersede any terms of any letter of credit
applications or other documents which are irreconcilably inconsistent with the
terms hereof or thereof. Borrower agrees to pay to Bank, at the time of
issuance, Letter of Credit fees equal to the Applicable Fee of the face amount
of each commercial Letter of Credit and the Applicable Fee per annum of each
standby Letter of Credit. Such Letter of Credit fees shall be due and payable
upon issuance and thereafter quarterly in advance on the first day of each
calendar quarter and shall be calculated on the basis that an entire year
consists of three hundred sixty (360) days. Such fees shall not be reduced or
refundable for any reason. Borrower shall also pay Bank&#146;s reasonable and
customary costs of issuing, servicing, and negotiating draws under the Letters
of Credit. Borrower hereby authorizes Bank to collect such fees by deducting the
amount thereof from any account of Borrower at Bank.</FONT></P>


<BR>
<BR>
<BR>
<hr>
<PAGE>



<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
2.5&nbsp;&nbsp;&nbsp;&nbsp;<B>Unconditional Reimbursement
Obligation</B>.&nbsp;&nbsp;&nbsp;&nbsp;The obligations of Borrower to reimburse
any drawing under the Letters of Credit shall be absolute, unconditional and
irrevocable and shall be paid and performed strictly in accordance with the
terms of this Agreement, as applicable, under all circumstances, whatsoever,
including, without limitation, the following:</FONT></P>


<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;any
lack of validity or enforceability of any Letter of Credit or any Loan Document;</FONT></DIV></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;any
amendment or waiver of or consent to departure from the terms of any Loan Document;</FONT></DIV></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the
existence of any claim, setoff, defense or other right which Borrower may have at any
time against the beneficiary of a Letter of Credit, any transferee thereof, Bank or any
other Person, whether in connection with the Loan Documents, any Letter of Credit or any
unrelated transaction;</FONT></DIV></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;any
statement, draft or other document presented under a Letter of Credit proving to be
forged, fraudulent, invalid or insufficient in any respect or any statement therein being
untrue or inaccurate in any respect whatsoever;</FONT></DIV></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the
surrender or impairment of any security for the performance or observance of the terms of
the Loan Documents or any Letter of Credit; or</FONT></DIV></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;any
circumstance, happening or omission whatsoever, whether or not similar to any of the
foregoing, including, without limitation, those matters described in Section 2.6 hereof.</FONT></DIV></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
2.6&nbsp;&nbsp;&nbsp;&nbsp;<B>Risk of Misuse of Letter of
Credit</B>.&nbsp;&nbsp;&nbsp;&nbsp;Except as expressly set forth herein,
Borrower assumes all risk for the acts, omissions and/or misrepresentations of
the parties benefited by a Letter of Credit. Neither Bank nor any of its
affiliates or correspondents shall be responsible for the validity, sufficiency,
truthfulness or genuineness of any document required to draw under a Letter of
Credit even if such document should in fact prove to be in any or all respects
invalid, insufficient, fraudulent or forged, provided only that the document
appears on its face to be in accordance with the terms of such Letter of Credit
and provided Bank is not grossly negligent or engaging in willful misconduct, or
for failure of any draft to bear reference or adequate reference to a Letter of
Credit or failure of any Person to note the amount of any draft on a Letter of
Credit or to surrender or take up a Letter of Credit, each of which provisions
may be waived by Bank, or for errors, omissions, interruptions, or delays in
transmission or delivery of any messages or documents. Without limiting the
generality of the foregoing, Borrower agrees that any action taken by Bank or
any of its correspondents under or in connection with any Letter of Credit, if
taken in good faith and without gross negligence, shall be binding upon Borrower
and shall not put Bank or any such correspondent under any resulting liability
to Borrower, and Borrower likewise agrees as to any omission unless in breach of
good faith or grossly negligent. Bank is expressly authorized to honor any
request for payment which is made under and in compliance with the terms of a
Letter of Credit without regard to and without any duty on its part to inquire
into the existence of any disputes or controversies between Borrower and the
beneficiary of a Letter of Credit or any other Person or into the respective
rights, duties or liabilities of any of them or whether any facts or occurrences
represented in any of the documents presented under a Letter of Credit are true
and correct. No Person, other than the parties hereto, shall have any rights of
any nature under this Agreement or by reason hereof. In no event shall
Bank&#146;s reliance and payment against documents presented under any Letter of
Credit appearing on its face to substantially comply with the terms thereof be
deemed to constitute gross negligence or willful misconduct.</FONT></P>


<BR>
<BR>
<BR>
<hr>
<PAGE>




<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
2.7&nbsp;&nbsp;&nbsp;&nbsp;<B>Prepayment/Exit
Fee</B>.&nbsp;&nbsp;&nbsp;&nbsp;Subject to the provisions of this Agreement,
Borrower may borrow, pay, reborrow and repay the available principal amount of
the Line of Credit at any time, and from time to time, in any multiple, without
premium or penalty, except that Eurodollar Rate Advances may only be prepaid on
the last day of the applicable Interest Period therefor. In the event the Line
of Credit or this Agreement is terminated prior to September 30, 2006 as a
result of the Line of Credit being refinanced with funds provided by a financial
institution other than Bank, Borrower shall pay Bank an exit fee in the amount
of One Hundred Fifty Thousand Dollars ($150,000).</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
2.8&nbsp;&nbsp;&nbsp;&nbsp;<B>Use of Proceeds</B>.&nbsp;&nbsp;&nbsp;&nbsp;The
proceeds of Advances under the Line of Credit shall be used for working capital
purposes of Borrower and its Subsidiaries.</FONT></P>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
2.9&nbsp;&nbsp;&nbsp;&nbsp;<B>Method of Advance</B>.
</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.9.1. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Line
of Credit</B>.&nbsp;&nbsp;&nbsp;&nbsp;Except as to autoline Advances (if applicable),
Borrower shall give Bank telephonic, telex or telegraphic notice of its intention to
borrow under the Line of Credit by not later than 10:00 o&#146;clock a.m. (Indianapolis
time) on the proposed borrowing date which shall be a Banking Day, subject to Section
2.2.4 hereof with respect to Eurodollar Rate Advances. Each request once received by Bank
shall be irrevocable, subject to Section 2.13 hereof. Borrower agrees that Bank may rely
on any such telephonic, telex, or telegraphic notices made by any Person whom Bank in
good faith believes to be authorized. If Bank requests, each requested Advance based on
telephonic notice shall be confirmed in writing by Borrower. In the event any notice by
such means shall conflict with the written confirmation, such notice shall govern if Bank
has acted in good faith in reliance thereon. Each request shall in and of itself
constitute a representation and warranty on behalf of Borrower that no Default or
Unmatured Default has occurred and is continuing or would result from the making of the
requested Advance and that the requested Advance shall not cause the principal balance of
the Line of Credit to exceed the maximum amount available under the Line of Credit from
time to time. Other than autoline Advances and subject to Section 2.2.4 hereof with
respect to Eurodollar Rate Advances, the principal amount of Advances under the Line of
Credit made on any borrowing date shall be in minimum amounts of Fifty Thousand Dollars
($50,000) and in integral multiples of One Thousand Dollars ($1,000) in excess thereof.</FONT></DIV></TD>
</TR>
</TABLE>
<BR>


<BR>
<BR>
<BR>
<hr>
<PAGE>




<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.9.2. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>General</B>.&nbsp;&nbsp;&nbsp;&nbsp;All
Advances by Bank under the Facilities and payments by Borrower on the Facilities shall be
recorded by Bank on its books and records, and the principal amount outstanding from time
to time, <B>plus</B> interest payable thereon, shall be determined from the books and records of
Bank. The books and records of Bank shall be presumed prima facie correct as to such
matters.</FONT></DIV></TD>
</TR>
</TABLE>
<BR>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
2.10&nbsp;&nbsp;&nbsp;&nbsp;<B>Taxes</B>.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.10.1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>General</B>.&nbsp;&nbsp;&nbsp;&nbsp;All
payments by Borrower under this Agreement or the Credit Note shall be made free and clear
of, and without deduction or withholding for, any present or future income, stamp or
other taxes, levies, duties, imposts, charges or fees or any related penalties, interest
or other liabilities (&#147;<B>Taxes</B>&#148;). If any Taxes are required to be deducted or
withheld from any amount payable to Bank under this Agreement or the Credit Note,
Borrower shall pay additional amounts so that the amount received by Bank after the
deduction of such Taxes (including Taxes on such additional amounts) equals the amount
that the Bank would have received if no Taxes had been deducted. Borrower shall pay to
the appropriate taxing authority all Taxes required to be deducted or withheld. Within
thirty (30) days after paying any such Taxes, Borrower shall deliver to Bank the original
or a certified copy of the receipt for such payment. Borrower shall not be required to
pay additional amounts to Bank on account of any Taxes, including, but not limited to,
income taxes, imposed solely by reason of a present or past connection between Bank and
the jurisdiction imposing such Taxes (except a connection arising solely from the
execution, delivery, performance, enforcement of or the receipt of payments under this
Agreement or the Credit Note). </FONT></DIV></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.10.2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Tax
Indemnity</B>.&nbsp;&nbsp;&nbsp;&nbsp;Borrower shall indemnify Bank against any Taxes
imposed on (and any related expenses reasonably incurred by) Bank on account of the
execution, delivery, performance or enforcement of or the receipt of payments under this
Agreement or the Credit Note other than Taxes imposed solely by reason of the cause
specified in the last sentence of Section 2.10.1 hereof. Borrower also shall pay and
indemnify Bank against any stamp or other documentary, excise or property taxes or
similar levies, imposts, or charges (or any related liability) arising from the
execution, delivery, registration, performance or enforcement of this Agreement or the
Credit Note. </FONT></DIV></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
2.11&nbsp;&nbsp;&nbsp;&nbsp;<B>Yield Protection</B>.&nbsp;&nbsp;&nbsp;&nbsp;If,
on or after the date of this Agreement, the adoption of any law or any
governmental or quasi-governmental rule, regulation, policy, guideline or
directive (whether or not having the force of law), or any change in the
interpretation or administration thereof by any governmental or
quasi-governmental authority, central bank or comparable agency charged with the
interpretation or administration thereof, or compliance by Bank with any request
or directive (whether or not having the force of law) of any such authority,
central bank or comparable agency:</FONT></P>



<BR>
<BR>
<BR>
<hr>
<PAGE>




<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
               <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
                    <TR VALIGN=TOP>
                    <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
                    <TD WIDTH=95%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
                    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                    subjects Bank to any Taxes, or changes the basis of taxation of payments (other
                    than with respect to Taxes imposed only by reason of the cause specified in the
                    last sentence of Section 2.10.1 hereof) to Bank in respect of its Eurodollar
                    Rate Advances, or</FONT></DIV></TD>
                    </TR>
                    </TABLE>
                    <BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
               <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
                    <TR VALIGN=TOP>
                    <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
                    <TD WIDTH=95%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
                    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                    imposes or increases or deems applicable any reserve, assessment, insurance
                    charge, special deposit or similar requirement against assets of, deposits with
                    or for the account of, or credit extended by, Bank (other than reserves and
                    assessments taken into account in determining the interest rate applicable to
                    Eurodollar Rate Advances), or</FONT></DIV></TD>
                    </TR>
                    </TABLE>
                    <BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
               <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
                    <TR VALIGN=TOP>
                    <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
                    <TD WIDTH=95%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
                    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                    imposes any other condition the result of which is to increase the cost to Bank
                    of making, funding or maintaining its Eurodollar Rate Advances or reduces any
                    amount receivable by Bank in connection with its Eurodollar Rate Advances, or
                    requires Bank to make any payment calculated by reference to the amount of
                    Eurodollar Rate Advances held or interest received by it, by an amount deemed
                    material by Bank,</FONT></DIV></TD>
                    </TR>
                    </TABLE>
                    <BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
and the result of any of the foregoing is to increase the cost to Bank of making
or maintaining its Eurodollar Rate Advances or Commitment or to reduce the
return received by Bank in connection with such Eurodollar Rate Advances or
Bank&#146;s commitment, then, within fifteen (15) days of demand by Bank,
Borrower shall pay Bank such additional amount or amounts as will compensate
Bank for such increased cost or reduction in amount received.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
2.12&nbsp;&nbsp;&nbsp;&nbsp;<B>Changes in Capital Adequacy
Regulations</B>.&nbsp;&nbsp;&nbsp;&nbsp;If Bank determines the amount of capital
required or expected to be maintained by Bank or any corporation controlling
Bank is increased as a result of a Change, then, within fifteen (15) days of
demand by Bank, Borrower shall pay Bank the amount necessary to compensate for
any shortfall in the rate of return on the portion of such increased capital
which Bank determines is attributable to this Agreement, the Facilities or its
commitment to make Advances hereunder (after taking into account Bank&#146;s
policies as to capital adequacy). &#147;<B>Change</B>&#148; means (a) any change after
the date of this Agreement in the Risk-Based Capital Guidelines, or (b) any
adoption of or change in any other law, governmental or quasi-governmental rule,
regulation, policy, guideline, interpretation, or directive (whether or not
having the force of law) after the date of this Agreement which affects the
amount of capital required or expected to be maintained by Bank or any
corporation controlling Bank. &#147;<B>Risk-Based Capital Guidelines</B>&#148; means
(i) the risk-based capital guidelines in effect in the United States on the date
of this Agreement, including transition rules, and (ii) the corresponding
capital regulations promulgated by regulatory authorities outside the United
States implementing the July 1988 report of the Basle Committee on Banking
Regulation and Supervisory Practices Entitled &#147;<B>International Convergence of
Capital Measurements and Capital Standards</B>,&#148; including transition rules,
and any amendments to such regulations adopted prior to the date of this
Agreement. The obligations of Borrower under this Section shall survive payment
of the Obligations and termination of this Agreement.</FONT></P>



<BR>
<BR>
<BR>
<hr>
<PAGE>




<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
2.13&nbsp;&nbsp;&nbsp;&nbsp;<B>Funding
Indemnification</B>.&nbsp;&nbsp;&nbsp;&nbsp;If any payment of a Eurodollar Rate
Advance occurs on a date which is not the last day of the applicable Interest
Period, whether because of acceleration, prepayment or otherwise, or a
Eurodollar Rate Advance is not made on the date specified by Borrower for any
reason other than default by Bank, or Borrower attempts to revoke (expressly, by
later inconsistent notices or otherwise) in whole or in part any notice stated
herein to be irrevocable (Bank having in its sole discretion the option (a) to
give effect to such attempted revocation and obtain indemnity under this
Section, or (b) to treat such attempted revocation as having no force or effect,
as if never made), Borrower will indemnify Bank for any loss or cost incurred by
it resulting therefrom, including, without limitation, any loss or cost in
liquidating or employing deposits acquired to fund or maintain such Eurodollar
Rate Advance.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
2.14&nbsp;&nbsp;&nbsp;&nbsp;<B>Availability of Types of
Advances</B>.&nbsp;&nbsp;&nbsp;&nbsp;If Bank determines that maintenance of its
Eurodollar Rate Advances would violate any applicable law, rule, regulation, or
directive, whether or not having the force of law, or if Bank determines that
(a) deposits of a type and maturity appropriate to match fund Eurodollar Rate
Advances are not available or (b) the interest rate applicable to a Type of
Advance does not accurately reflect the cost of making or maintaining such
Advance, then Bank shall suspend the availability of the affected Type of
Advance and require any affected Eurodollar Rate Advances to be repaid or
converted to Prime Rate Advances, subject to the payment of any funding
indemnification amounts required by Section 2.13.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
2.15&nbsp;&nbsp;&nbsp;&nbsp;<B>Bank Statements; Survival of
Indemnity</B>.&nbsp;&nbsp;&nbsp;&nbsp;To the extent reasonably possible, Bank
shall designate an alternate lending installation with respect to its Eurodollar
Rate Advances to reduce any liability of Borrower to Bank under Section 2.11 or
to avoid the unavailability of Eurodollar Rate Advances under Section 2.14, so
long as such designation is not, in the judgment of Bank, disadvantageous to
Bank. Bank shall deliver a written statement to Borrower as to the amount due,
if any, under Section 2.11, Section 2.12 or Section 2.13. Such written statement
shall set forth in reasonable detail the calculations upon which Bank determined
such amount and shall be final, conclusive and binding on Borrower in the
absence of manifest error. Determination of amounts payable under such Sections
in connection with a Eurodollar Rate Advance shall be calculated as though Bank
funded its Eurodollar Rate Advance through the purchase of a deposit of the type
and maturity corresponding to the deposit used as a reference in determining the
Eurodollar Rate Advance, whether in fact that is the case or not. Unless
otherwise provided herein, the amount specified in the written statement of Bank
shall be payable on demand after receipt by Borrower of such written statement.
The obligations of Borrower under Section 2.11, Section 2.12 and Section 2.13
shall survive payment of the Obligations and termination of this
Agreement.</FONT></P>

<!-- MARKER FORMAT-SHEET="ARTICLE -TNR" FSL="Default" -->
<A NAME=A009></A>
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
Article 3.&nbsp;&nbsp;&nbsp;&nbsp;S<small>ECURITY AND</small> G<small>UARANTY</small></FONT></P>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 3.1&nbsp;&nbsp;&nbsp;&nbsp;<B>Security</B>.&nbsp;&nbsp;&nbsp;&nbsp;The
Obligations shall be secured by the following:</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
               <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
                    <TR VALIGN=TOP>
                    <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
                    <TD WIDTH=95%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
                    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                    the Security Agreement constituting a first priority security interest in all
                    Accounts, Inventory, General Intangibles, Chattel Paper, Equipment, Goods,
                    Deposit Accounts, Instruments, Investment Property (provided that only 65% of
                    Borrower&#146;s interest in non-U.S. Subsidiaries shall be pledged), Documents
                    and all other personal property of Borrower (excluding Fixtures) now owned or
                    hereafter acquired and all Proceeds thereof;</FONT></DIV></TD>
                    </TR>
                    </TABLE>
                    <BR>


<BR>
<BR>
<BR>
<hr>
<PAGE>




<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
               <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
                    <TR VALIGN=TOP>
                    <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
                    <TD WIDTH=95%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
                    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                    the Policy Assignment constituting collateral assignment to Bank of an
                    acceptable life insurance policy owned by Borrower insuring the life of Peter
                    Kissinger in the face amount of not less than One Million Dollars ($1,000,000);
                    and</FONT></DIV></TD>
                    </TR>
                    </TABLE>
                    <BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
               <TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
                    <TR VALIGN=TOP>
                    <TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
                    <TD WIDTH=95%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
                    &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
                    such other security interests as may be described in the Loan Documents.</FONT></DIV></TD>
                    </TR>
                    </TABLE>
                    <BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
3.2&nbsp;&nbsp;&nbsp;&nbsp;<B>Addition of Guarantors; Addition of Pledged
Capital Stock and other Collateral</B>.&nbsp;&nbsp;&nbsp;&nbsp; Borrower shall
cause each U.S. Subsidiary that is a Subsidiary as of the date of this Agreement
or at any time thereafter, to deliver to Bank an executed Guaranty and
appropriate corporate resolutions, opinions and other documentation in form and
substance reasonably satisfactory to Bank, such Guaranty and other documentation
to be delivered to Bank as promptly as possible but in any event (a) within two
(2) Banking Days after the date of the consummation of a permitted Acquisition
involving such Subsidiary and (b) otherwise within thirty (30) days of
determination that a Subsidiary needs to be added as a Guarantor. Simultaneously
with any Subsidiary becoming a Guarantor, Borrower shall (or, if the capital
stock of such Subsidiary is owned by another Subsidiary, shall cause such other
Subsidiary to) deliver to Bank an executed supplement to the existing Security
Agreement or a new Pledge Agreement, together with appropriate corporate
resolutions, opinions, stock certificates, UCC filings or amendments and other
documentation, in each case in form and substance reasonably satisfactory to
Bank and Bank shall be reasonably satisfied that it has a first priority
perfected pledge of all of the outstanding capital stock of each U.S. Subsidiary
and 65% of the outstanding capital stock of each non-U.S. Subsidiary, in either
case, owned by Borrower and its Subsidiaries. Simultaneously with any U.S.
Subsidiary becoming a Guarantor, Borrower shall, or shall cause such U.S.
Subsidiary to, (i)&nbsp;execute and deliver a Security Agreement (and deliver
the other documents required thereby) and such other collateral documents as
Bank may require in its sole and reasonable discretion; and (ii)&nbsp;deliver
such other documentation as Bank may reasonably require in connection with the
foregoing, including, without limitation, appropriate UCC financing statements,
UCC searches, certified resolutions and other organizational and authorizing
documents of such U.S. Subsidiary, favorable opinions of counsel to such U.S.
Subsidiary (which shall cover, among other things, the legality, validity,
binding effect and enforceability of the documentation referred to above and the
perfection of Bank&#146;s liens thereunder) and other items of the types
required to be delivered by Borrower pursuant to Section 6.1 as of the closing
date, all in form, content and scope reasonably satisfactory to Bank.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
3.3&nbsp;&nbsp;&nbsp;&nbsp;<B>Additional
Collateral/Setoff</B>.&nbsp;&nbsp;&nbsp;&nbsp;Borrower hereby grants to Bank
(and any participant of the Facilities), as additional security for the
Obligations, a continuing lien upon all monies, securities and other property of
Borrower now or hereafter held or received by, or in transit to, Bank from or
for Borrower. Bank (and any such participant of the Facilities) is authorized at
any time and from time to time while there exists a Default, without notice to
Borrower, and shall have the right to setoff, appropriate and apply its own debt
or liability to Borrower, or to any other Person liable for the Obligations, in
whole or partial payment of any Obligation in such order or manner as Bank may
reasonably determine, without any requirements of mutual maturity.</FONT></P>




<BR>
<BR>
<BR>
<hr>
<PAGE>




<!-- MARKER FORMAT-SHEET="ARTICLE -TNR" FSL="Workstation" -->
<A NAME=A010></A>
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
Article 4.&nbsp;&nbsp;&nbsp;&nbsp;R<small>EPRESENTATIONS AND</small>
W<small>ARRANTIES</small></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Default" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Borrower represents, covenants
and warrants to Bank as follows: </FONT></P>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 4.1&nbsp;&nbsp;&nbsp;&nbsp;<B>Due
Organization</B>.&nbsp;&nbsp;&nbsp;&nbsp;Borrower is a corporation duly
organized and validly existing under the laws of the State of Indiana.
</FONT></P>
<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
4.2&nbsp;&nbsp;&nbsp;&nbsp;<B>Due Qualification</B>.&nbsp;&nbsp;&nbsp;&nbsp;Borrower and each Subsidiary is qualified, in good standing and
authorized to do business as a foreign corporation or limited liability company in such
other states wherein the failure to so qualify would have a Material Adverse Effect.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
4.3&nbsp;&nbsp;&nbsp;&nbsp;<B>Corporate
Power</B>.&nbsp;&nbsp;&nbsp;&nbsp;Borrower possesses the requisite power to
enter into the Loan Documents, as applicable, to borrow thereunder, to execute
and deliver the Loan Documents and to perform its respective obligations
thereunder.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
4.4&nbsp;&nbsp;&nbsp;&nbsp;<B>Corporate
Authority</B>.&nbsp;&nbsp;&nbsp;&nbsp;Borrower has taken the necessary corporate
action to authorize the execution and delivery of the Loan Documents, as
applicable, and the borrowings thereunder and the granting of the security
interests therein, and none of the provisions of the Loan Documents violate,
breach, contravene, conflict with, or cause a default under any provision of the
articles of incorporation, or by-laws of Borrower or any provision of any
existing note, bond, mortgage, debenture, indenture, trust, license, lease,
instrument, decree, order, judgment, or agreement to which Borrower is a party
or by which it or its assets may be bound or affected, which in any case is
reasonably likely to have a Material Adverse Effect.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
4.5&nbsp;&nbsp;&nbsp;&nbsp;<B>Financial
Statements</B>.&nbsp;&nbsp;&nbsp;&nbsp;The Financial Statements were prepared in
accordance with GAAP consistent with prior years, unless specifically otherwise
noted thereon, and fairly present in all material respects the financial
condition of Borrower as of the date thereof and the results of its operations
for the period then ended, and no material adverse change in the financial
condition of Borrower has occurred since the date of the Financial
Statements.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Default" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
4.6&nbsp;&nbsp;&nbsp;&nbsp;<B>No Material Adverse
Change</B>.&nbsp;&nbsp;&nbsp;&nbsp;The information submitted by Borrower to Bank
discloses all known or anticipated material liabilities, direct or contingent,
of Borrower as of the dates thereof, and, to the best knowledge of Borrower,
since such dates, there has been no material adverse change in Borrower&#146;s
financial condition.</FONT></P>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
4.7&nbsp;&nbsp;&nbsp;&nbsp;<B>Subsidiaries</B>.&nbsp;&nbsp;&nbsp;&nbsp;Except as
disclosed on <B>Schedule 4.7</B> hereto, Borrower has no Subsidiaries.
</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
4.8&nbsp;&nbsp;&nbsp;&nbsp;<B>Binding
Obligations</B>.&nbsp;&nbsp;&nbsp;&nbsp;Each of the Loan Documents, when issued
for value, will constitute a legal, valid and binding obligation of Borrower,
enforceable against Borrower in accordance with its terms, except as the same
may be limited by reorganization, bankruptcy, insolvency, moratorium or other
laws affecting generally the enforcement of creditors&#146; rights.</FONT></P>



<BR>
<BR>
<BR>
<hr>
<PAGE>





<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
4.9&nbsp;&nbsp;&nbsp;&nbsp;<B>Marketable
Title</B>.&nbsp;&nbsp;&nbsp;&nbsp;Borrower and each Subsidiary has good and
marketable title to all of its real Property and good title to all of its other
Properties shown on the Financial Statements, except such Properties as have
been disposed of since the date of the Financial Statements in the ordinary
course of business. Except for Permitted Encumbrances, (a) the assets of
Borrower and the Subsidiaries are not subject to any Lien and the security
interests in favor of Bank under the Loan Documents will constitute first,
senior and prior perfected security interests in the collateral therein
described, and (b) no financing statement or similar instrument which names
Borrower or its Subsidiaries as debtor or relates to any of its Property, has
been filed in any state or other jurisdiction and remains unreleased, and
Borrower and its Subsidiaries have not signed any financing statement or similar
instrument or security agreement authorizing the secured party thereunder to
file any such financing statement or similar instrument.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
4.10&nbsp;&nbsp;&nbsp;&nbsp;<B>Indebtedness</B>.&nbsp;&nbsp;&nbsp;&nbsp;Except
as shown on the Financial Statements, except as set forth on <B>Schedule 4.10</B>
hereto, and except for trade debt incurred in the ordinary course of business
since the date of the Financial Statements, neither Borrower nor any Subsidiary
has any outstanding Indebtedness.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
4.11&nbsp;&nbsp;&nbsp;&nbsp;<B>Default</B>.&nbsp;&nbsp;&nbsp;&nbsp;Neither
Borrower nor any Subsidiary has committed or suffered to exist any default or
any circumstance which with notice, lapse of time, or both, would constitute a
default under the terms and conditions of any trust, debenture, indenture, note,
bond, instrument, mortgage, lease, agreement, order, decree, or judgment to
which Borrower or a Subsidiary is a party or by which it or its assets may be
bound or affected, which in any case is reasonably likely to have a Material
Adverse Effect.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
4.12&nbsp;&nbsp;&nbsp;&nbsp;<B>Tax Returns</B>.&nbsp;&nbsp;&nbsp;&nbsp;All tax
returns or reports of Borrower and its Subsidiaries required by law have been
filed, and all taxes, assessments, contributions, fees and other governmental
charges (other than those presently payable without penalty or interest and
those currently being contested in good faith and against which adequate
reserves have been established) upon Borrower, its Subsidiaries or their assets,
properties or income, which are payable, have been paid, except for the failure
to file or pay that are not reasonably likely to have a Material Adverse
Effect.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
4.13&nbsp;&nbsp;&nbsp;&nbsp;<B>Litigation</B>.&nbsp;&nbsp;&nbsp;&nbsp;Except as
set forth on any <B>Schedule 4.13</B> hereto, no litigation or proceeding of any
Governmental Authority or other Person is presently pending or, to
Borrower&#146;s knowledge, threatened, nor has any claim been asserted, against
Borrower or its Subsidiaries which, if adversely determined, is reasonably
likely to have a Material Adverse Effect.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
4.14&nbsp;&nbsp;&nbsp;&nbsp;<B>ERISA</B>.&nbsp;&nbsp;&nbsp;&nbsp;Borrower and
each ERISA Affiliate is in compliance in all material respects with all
applicable provisions of ERISA, and neither Borrower nor any ERISA Affiliate has
incurred any liability to the PBGC. Neither a &#147;<B>reportable event</B>&#148;, nor
a &#147;<B>prohibited transaction</B>&#148;, has occurred under, nor has there occurred
any complete or partial withdrawal from, nor has there occurred any other event
which would constitute grounds for termination of or the appointment of a
trustee to administer any &#147;<B>employee benefit plan</B>&#148; (including any
&#147;<B>multi-employer plan</B>&#148;) maintained for employees of Borrower or any
ERISA Affiliate, all within the meanings ascribed by ERISA.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
4.15&nbsp;&nbsp;&nbsp;&nbsp;<B>Full Disclosure</B>.&nbsp;&nbsp;&nbsp;&nbsp;No
information, exhibit, memorandum, or report (excluding estimated future
operating results) furnished by Borrower to Bank in connection with the
negotiation of the Facilities contains any material misstatement of fact, or
omits to state any material fact necessary to make the statements contained
therein not materially misleading in light of the circumstances when made, and
all estimated future operating results, if furnished, were prepared on the basis
of assumptions, data, information, tests or other conditions believed to be
valid or accurate or to exist at the time such estimates were prepared and
furnished. To Borrower&#146;s knowledge, there presently exists no fact or
circumstance relative to Borrower or its Subsidiaries, whether or not disclosed,
which is presently anticipated to have a Material Adverse Effect.</FONT></P>


<BR>
<BR>
<BR>
<hr>
<PAGE>



<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
4.16&nbsp;&nbsp;&nbsp;&nbsp;<B>Contracts of
Surety</B>.&nbsp;&nbsp;&nbsp;&nbsp;Except for the endorsements of Borrower or a
Subsidiary of negotiable instruments for deposit or collection in the ordinary
course of business and except the Guaranty, neither Borrower nor any Subsidiary
is a party to any contract of guaranty or surety.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
4.17&nbsp;&nbsp;&nbsp;&nbsp;<B>Licenses</B>.&nbsp;&nbsp;&nbsp;&nbsp;Borrower and
each Subsidiary possesses such franchises, licenses, permits, patents,
copyrights, trademarks, and consents of appropriate Governmental Authorities to
own its property and as are necessary to carry on its business, except where the
failure to obtain any of the foregoing, singularly or in aggregate, is not
reasonably likely to have a Material Adverse Effect.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
4.18&nbsp;&nbsp;&nbsp;&nbsp;<B>Compliance with
Law</B>.&nbsp;&nbsp;&nbsp;&nbsp;Borrower and each Subsidiary is in substantial
compliance with all applicable requirements of law and of all Governmental
Authorities noncompliance with which is reasonably likely to have a Material
Adverse Effect.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
4.19&nbsp;&nbsp;&nbsp;&nbsp;<B>Force Majeure</B>.&nbsp;&nbsp;&nbsp;&nbsp;Neither
the business nor the properties of Borrower or a Subsidiary are presently
affected by any fire, explosion, accident, strike, lockout or other labor
dispute, drought, storm, hail, earthquake, embargo, act of God or of the public
enemy or other casualty that is reasonably likely to have a Material Adverse
Effect.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
4.20&nbsp;&nbsp;&nbsp;&nbsp;<B>Margin Stock</B>.&nbsp;&nbsp;&nbsp;&nbsp;Borrower
is not engaged in the business of extending credit for the purpose of purchasing
or carrying margin stock (within the meaning of Regulation U of the Board of
Governors of the Federal Reserve System), and no part of the proceeds of the
Facilities will be used, either directly or indirectly, for the purpose, whether
immediate, incidental or remote, of purchasing or carrying any margin stock or
of extending credit to others for the purpose of purchasing or carrying any
margin stock, and Borrower shall furnish to Bank, upon its request, a statement
in conformity with the requirements of Federal Reserve Board Form U-1 referred
to in Regulation U. Further, no part of the proceeds of the Facilities will be
used for any purpose that violates, or which is inconsistent with, the
provisions of Regulations T, U or X of the Board of Governors.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
4.21&nbsp;&nbsp;&nbsp;&nbsp;<B>Approvals</B>.&nbsp;&nbsp;&nbsp;&nbsp;No
authorization, consent, approval or any form of exemption of any Governmental
Authority is required in connection with the execution and delivery by Borrower
of the Loan Documents, the borrowings and performance by Borrower thereunder or
the issuance of the Credit Note.</FONT></P>



<BR>
<BR>
<BR>
<hr>
<PAGE>




<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
4.22&nbsp;&nbsp;&nbsp;&nbsp;<B>Insolvency</B>.&nbsp;&nbsp;&nbsp;&nbsp;Borrower
and each Subsidiary is not &#147;<B>insolvent</B>&#148; within the meaning of that term
as defined in the Federal Bankruptcy Code and each is able to pay its debts as
they mature.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
4.23&nbsp;&nbsp;&nbsp;&nbsp;<B>Regulation</B>.&nbsp;&nbsp;&nbsp;&nbsp;Borrower
is not an &#147;<B>investment company</B>&#148; within the meaning of the Investment
Company Act of 1940, as amended, or a &#147;<B>holding company</B>&#148; or an
&#147;<B>affiliate of a holding company</B>&#148; or a &#147;<B>subsidiary of a holding
company</B>&#148; within the meanings of the Public Utility Holding Company Act of
1935, as amended.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
4.24&nbsp;&nbsp;&nbsp;&nbsp;<B>Environmental
Matters</B>.&nbsp;&nbsp;&nbsp;&nbsp;In the ordinary course of its business,
Borrower conducts an ongoing review of the effect of Environmental Laws on the
business, operations and Properties of Borrower and its Subsidiaries, in the
course of which it identifies and evaluates associated liabilities and costs
(including any capital or operating expenditures required for clean-up or
closure of Properties presently owned or operated, any capital or operating
expenditures required to achieve or maintain compliance with environmental
protection standards imposed by Environmental Laws or as a condition of any
license, permit or contract any related constraints on operating activities,
including any periodic or permanent shutdown of any facility or reduction in the
level of or change in the nature of operations conducted thereat and any actual
or potential liabilities to third parties, including employees, and any related
costs and expenses). On the basis of this review, Borrower has reasonably
concluded that Environmental Laws cannot reasonably be expected to have a
Material Adverse Effect. Borrower has not received any notice to the effect that
its operations are not in compliance with any of the requirements of applicable
Environmental Laws or are the subject of any federal or state investigation
evaluating whether any remedial action is needed to respond to a release of any
Hazardous Materials. Except as disclosed in writing to Bank as of the date of
this Agreement, to the best of its knowledge (provided that clause (e) below is
not subject to any such knowledge qualification except as specifically provided
in clause (e)):</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All facilities and Property
(including underlying groundwater) owned, leased or operated by Borrower and its
Subsidiaries have been, and continue to be, owned, leased or operated by
Borrower or such Subsidiary in compliance with all applicable Environmental
Laws, except for incidences of noncompliance which, singly or in the aggregate,
have not, or may not reasonably be expected to have, a Material Adverse
Effect;</FONT></DIV></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There have been no past
unresolved, and there are no pending or threatened,</FONT></DIV></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=90%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;claims, complaints, notices or
inquiries, to, or requests for information received by, Borrower and its
Subsidiaries with respect to any alleged violation of any Environmental Law,
that, singly or in the aggregate, have had, or may reasonably be expected to
have, a Material Adverse Effect, or</FONT></DIV></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=90%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;claims, complaints, notices or
inquiries to, or requests for information received by, Borrower and its
Subsidiaries regarding potential liability under any Environmental Law or under
any common law theories relating to operations or the condition of any
facilities or Property by Borrower or such Subsidiary that, singly or in the
aggregate, have had, or may reasonably be expected to have, a Material Adverse
Effect.</FONT></DIV></TD>
</TR>
</TABLE>
<BR>



<BR>
<BR>
<BR>
<hr>
<PAGE>




<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There have been no releases of
Hazardous Materials, at, on or under any Property now or previously owned or
leased by Borrower or its Subsidiaries that, singly or in the aggregate, have
had, or may reasonably be expected to have, a Material Adverse
Effect;</FONT></DIV></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Borrower and each Subsidiary has
been issued and is in compliance with all permits, certificates, approvals,
licenses and other authorizations relating to environmental matters and
necessary for its business, the noncompliance with which, singly or in the
aggregate, has not had, or is not reasonably expected to have, a Material
Adverse Effect;</FONT></DIV></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No Property now or previously
owned, leased or operated by Borrower or its Subsidiaries is listed or, to the
best knowledge of Borrower, proposed for listing on the National Priorities List
pursuant to CERCLA (or any similar Environmental Law) or on the CERCLIS or on
any other federal or state list of sites requiring investigation or clean-up, to
the extent that any such listing, singly or in the aggregate, has had, or may
reasonably be expected to have, a Material Adverse Effect;</FONT></DIV></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There are no underground storage
tanks, active or abandoned, including petroleum storage tanks, on or under any
Property now or previously owned, leased or operated by a Borrower or its
Subsidiaries that, singly or in the aggregate, have had, or may reasonably be
expected to have had, a Material Adverse Effect;</FONT></DIV></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Neither Borrower nor any
Subsidiary has directly transported or directly arranged for the transportation
of any Hazardous Material to any location (i) which is listed or proposed for
listing on the National Priorities List pursuant to CERCLA (or any similar
Environmental Law) or on the CERCLIS or on any federal or state list, to the
extent that any such listing, singly or in the aggregate, has had, or may
reasonably be expected to have, a Material Adverse Effect, or (ii) which is the
subject of federal, state or local enforcement actions or other investigations
which may lead to claims against Borrower or such Subsidiary for any remedial
work, damage to natural resources or personal injury, including claims under any
Environmental Law, to the extent that such claims, singly or in the aggregate,
has had, or may reasonably be expected to have, a Material Adverse
Effect;</FONT></DIV></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There are no polychlorinated
biphenyl, radioactive materials or friable asbestos present at any Property now
or previously owned or leased by Borrower or its Subsidiaries that, singly or in
the aggregate, have had, or may reasonably be expected to have, a Material
Adverse Effect; and</FONT></DIV></TD>
</TR>
</TABLE>
<BR>



<BR>
<BR>
<BR>
<hr>
<PAGE>



<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No
condition exists at, on or under any Property now or previously owned or leased
by Borrower or its Subsidiaries which, with the passage of time, or the giving
of notice or both, would give rise to material liability under any Environmental
Law that, singly or in the aggregate may reasonably be expected to have a
Material Adverse Effect.</FONT></DIV></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
4.25&nbsp;&nbsp;&nbsp;&nbsp;<B>Conditions
Precedent</B>.&nbsp;&nbsp;&nbsp;&nbsp;Each item furnished to Bank pursuant to
Section 6.1 hereof is a true and correct copy thereof, has not been modified or
amended and is in full force and effect on the date hereof.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
4.26&nbsp;&nbsp;&nbsp;&nbsp;<B>General</B>.&nbsp;&nbsp;&nbsp;&nbsp;All
statements contained in any certificate or financial statement delivered by or
on behalf of Borrower to Bank under any Loan Document shall constitute
representations and warranties made by Borrower hereunder.</FONT></P>

<!-- MARKER FORMAT-SHEET="ARTICLE -TNR" FSL="Workstation" -->
<A NAME=A011></A>
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
Article 5.&nbsp;&nbsp;&nbsp;&nbsp;C<small>OVENANTS</small></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
5.1&nbsp;&nbsp;&nbsp;&nbsp;<B>Negative Covenants</B>.&nbsp;&nbsp;&nbsp;&nbsp;
Until the Obligations shall have been fully and finally paid and performed, and
so long as any commitment of Bank is outstanding, without the prior written
consent of Bank, Borrower shall not and shall not permit any Subsidiary
to:</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.1. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Dispose
of Collateral</B>.&nbsp;&nbsp;&nbsp;&nbsp;Sell, transfer, lease or otherwise dispose of
any collateral granted or pledged to Bank, or discount, with or without recourse, any
Accounts, except (a) for sales from Inventory in the ordinary course of business, (b) as
otherwise provided in the Security Agreement and (c) the write-off of uncollectible
Accounts in the ordinary course of business.</FONT></DIV></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.2. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Further
Encumber</B>.&nbsp;&nbsp;&nbsp;&nbsp;Except for Permitted Encumbrances, create or suffer
to exist any Lien upon any of its Properties, whether now owned or hereafter acquired.</FONT></DIV></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.3. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Conduct
of Business; Subsidiaries; Acquisitions</B>.</FONT></DIV></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=90%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Neither
Borrower nor any of its Subsidiaries shall engage in any business other than the
businesses engaged in by Borrower on the date hereof, those business engaged in by the
entities acquired in Acquisitions approved in writing by Bank, and any business or
activities which are substantially similar, related or incidental thereto.</FONT></DIV></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=90%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Borrower
shall not create, acquire or capitalize any Subsidiary (a &#147;<B>New Subsidiary</B>&#148;)
after the date hereof pursuant to any transaction unless such transaction is permitted by
or not otherwise prohibited by this Agreement and upon the creation or acquisition of
each New Subsidiary, Borrower shall cause each New Subsidiary to promptly deliver to Bank
the documents, instruments and agreements required pursuant to Section 3.3 hereof. After
the formation or acquisition of any New Subsidiary permitted hereunder, if requested by
Bank, Borrower shall provide a supplement to <B>Schedule 4.7</B> to this Agreement.</FONT></DIV></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=90%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Borrower
shall not and shall not permit any of its Subsidiaries to make any Acquisitions.</FONT></DIV></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.4. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Purchase
Stock</B>.&nbsp;&nbsp;&nbsp;&nbsp;Purchase, redeem, retire or otherwise acquire any
outstanding shares of its capital stock.</FONT></DIV></TD>
</TR>
</TABLE>
<BR>



<BR>
<BR>
<BR>
<hr>
<PAGE>




<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.5. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Sell
and Leaseback</B>.&nbsp;&nbsp;&nbsp;&nbsp;Other than a leaseback of its Baltimore,
Maryland facility, enter into any Sale and Leaseback Transaction.</FONT></DIV></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.6. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Borrowings/Subordinated
Debt Payments</B>.&nbsp;&nbsp;&nbsp;&nbsp;Create, incur, assume or suffer to exist any
Indebtedness, except (a) trade accounts and normal business accruals payable in the
ordinary course of business, (b) Indebtedness to Bank, (c) Subordinated Debt, (d)
Indebtedness owed to Union Planters Bank, National Association in the maximum principal
amount of Ten Million Dollars ($10,000,000), and (e) as set forth on <B>Schedule 5.1.6</B>
hereto. Borrower and its Subsidiaries shall not make any payment in respect of any of the
Subordinated Debt, except (i) as permitted in the applicable Subordination Agreement, or
(ii) pursuant to the terms of the documents evidencing Subordinated Debt that Bank has
specifically approved in writing to constitute Subordinated Debt, notwithstanding the
absence of a Subordination Agreement.</FONT></DIV></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.7. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Investments</B>.&nbsp;&nbsp;&nbsp;&nbsp;Make
any Investment, except (a) advances to trade debtors in the ordinary course of business,
(b) Qualified Investments, (c) existing Investments described on <B>Schedule 5.1.7</B> hereto,
(d) Investments to and in (i) a U.S. Subsidiary that is a Guarantor, or (ii) foreign
Subsidiaries in an amount at any time not exceeding One Million Five Hundred Thousand
Dollars ($1,500,000) in the aggregate in addition to the existing investments in foreign
Subsidiaries shown on <B>Schedule 5.1.7</B>, provided that in any case under clause (d) above
there exists no Default or Unmatured Default at the time of, or after giving effect to,
such Investment and provided the Subsidiary is not &#147;<B>insolvent</B>&#148; at the time of
such Investment nor rendered &#147;<B>insolvent</B>&#148; (as such terms are used in the Federal
Bankruptcy Code) by such Investment, and loans and advances to Borrower by a Guarantor.</FONT></DIV></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.8. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Guarantees</B>.&nbsp;&nbsp;&nbsp;&nbsp;Assume,
guarantee or otherwise become liable as a guarantor or surety for the obligations of any
Person, except (a) the endorsements by Borrower of negotiable instruments for deposit or
collection in the ordinary course of business, and (b) those in favor of Bank.</FONT></DIV></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.9. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Change
Name or Place of Business</B>.&nbsp;&nbsp;&nbsp;&nbsp;Change its name or principal place
of business, except on not less than thirty (30) days prior written notice to Bank.</FONT></DIV></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.10. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Special
Corporate Transactions</B>.&nbsp;&nbsp;&nbsp;&nbsp;Engage in any transaction with any
Person other than in the ordinary course of business.</FONT></DIV></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.11. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Accounting
Policies</B>.&nbsp;&nbsp;&nbsp;&nbsp;Change its fiscal year or any of its significant
accounting policies, except to the extent necessary to comply with GAAP.</FONT></DIV></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.12. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Change
of Business</B>.&nbsp;&nbsp;&nbsp;&nbsp;Make any material change in the nature of its
business as carried on as of the date of this Agreement.</FONT></DIV></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.13. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Benefit
Plans</B>.&nbsp;&nbsp;&nbsp;&nbsp;Permit any condition to exist in connection with any
employee benefit plan which might constitute grounds for the PBGC to institute
proceedings to have the employee benefit plan terminated or a trustee appointed to
administer the employee benefit plan; or engage in, or permit to exist or occur any other
condition, event or transaction with respect to any employee benefit plan which could
result in Borrower incurring any material liability, fine or penalty.</FONT></DIV></TD>
</TR>
</TABLE>
<BR>



<BR>
<BR>
<BR>
<hr>
<PAGE>




<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.14.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Adversity</B>.&nbsp;&nbsp;&nbsp;&nbsp;Permit
any event to occur or condition to exist which has a Material Adverse Effect.</FONT></DIV></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.15.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Dividends/Distributions</B>.&nbsp;&nbsp;&nbsp;&nbsp;Declare
or pay any dividend or make any distribution on account of stock, in cash or other
property.</FONT></DIV></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.16.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Restrictive
Agreements</B>.&nbsp;&nbsp;&nbsp;&nbsp;Enter into any agreement (excluding any
restrictions existing under the Loan Documents) prohibiting (a) the creation or
assumption of any lien upon any of its Property, (b) the ability of Borrower to amend or
otherwise modify this Agreement or any other Loan Document, or (c) the ability of any
Subsidiary to make any payment, directly or indirectly, to Borrower by way of advances,
repayments of loans or advances or otherwise.</FONT></DIV></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1.17.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Transactions
with Shareholders and Affiliates</B>.&nbsp;&nbsp;&nbsp;&nbsp;Neither Borrower nor any of
its Subsidiaries shall directly or indirectly enter into or permit to exist any
transaction (including, without limitation, the purchase, sale, lease or exchange of any
property or the rendering of any service) with any holder or holders of any of the
capital stock of Borrower, or with any Affiliate of Borrower which is not its Subsidiary,
on terms that are less favorable to Borrower or any of its Subsidiaries, as applicable,
than those that might be obtained in an arm&#146;s length transaction at the time from
Persons who are not such a holder or Affiliate.</FONT></DIV></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 5.2&nbsp;&nbsp;&nbsp;&nbsp;<B>Affirmative
Covenants</B>.&nbsp;&nbsp;&nbsp;&nbsp;Until the Obligations shall have been
fully and finally paid and performed, and so long as any commitment of Bank is
outstanding, unless expressly waived in writing by Bank, Borrower
shall:</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2.1. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Financial
Reporting</B>.&nbsp;&nbsp;&nbsp;&nbsp;Furnish or caused to be furnished to Bank:</FONT></DIV></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=90%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;as
soon as practicable, but in any event within one hundred twenty (120) days after the end
of each fiscal year, consolidated and consolidating financial statements of Borrower,
including a balance sheet, statement of income and retained earnings and a statement of
cash flows, with accompanying notes to financial statements, all prepared in accordance
with GAAP on a consolidated basis consistent with prior years unless specifically noted
thereon, accompanied by the unqualified opinion of KPMG or other independent certified
public accountants acceptable to Bank and shall state that such financial statements
fairly present in all material respects the consolidated financial position of the
Borrower and its Subsidiaries as at the dates indicated and the results of their
operations and cash flows for the periods indicated in conformity with GAAP and that the
examination by such accountants in connection with such consolidated and consolidating
financial statements has been made in accordance with generally accepted auditing
standards, and further accompanied by the certificate of the chief financial officer of
Borrower that there exists no Default or Unmatured Default under the Loan Documents, or
if any Default or Unmatured Default exists, stating the nature and status thereof;</FONT></DIV></TD>
</TR>
</TABLE>
<BR>



<BR>
<BR>
<BR>
<hr>
<PAGE>



<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=90%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;as
soon as possible, but in any event within forty-five (45) days after the end of each
fiscal quarter, similar consolidated financial statements of Borrower as of the end of
such quarter and the results of its operations for the portion of the fiscal year then
elapsed, prepared and signed by the chief financial officer of Borrower, all prepared in
accordance with GAAP on a consolidated basis consistent with prior periods, unless
specifically otherwise noted thereon, except for the omission of full footnotes which may
be required under GAAP and subject to normal year end adjustments, and accompanied by the
certificate of the chief financial officer of Borrower that there exists no Default or
Unmatured Default under the Loan Documents or if any Default or Unmatured Default exists,
stating the nature and status thereof;</FONT></DIV></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=90%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;as
soon as possible, but in any event within five (5) days after Borrower becomes aware
thereof, a written statement signed by the chief executive or chief financial officer of
Borrower as to the occurrence of any Default or Unmatured Default stating the specific
nature thereof, Borrower&#146;s intended action to cure the same and the time period in
which such cure is to occur;</FONT></DIV></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=90%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;as
soon as possible, but in any event within thirty (30) days after the commencement
thereof, a written statement describing any litigation instituted by or against Borrower,
its Subsidiaries or any Affiliate which, if adversely determined, may have a Material
Adverse Effect;</FONT></DIV></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=90%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;within
thirty (30) days after the end of each calendar month, a Borrowing Base Certificate, in
the form prescribed by Bank, executed by the chief financial officer of Borrower,
evidencing the Borrowing Base as of the close of the immediately preceding calendar
month, showing the calculation thereof, the outstanding principal amount of the
Facilities (including, without limitation, Letters of Credit) and such other information
as Bank may reasonably request;</FONT></DIV></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=90%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;within
thirty (30) days after the end of each calendar month, a certificate setting forth, as of
the end of such immediately preceding month, an accounts receivable aging statement, an
accounts payable aging statement and an Inventory report of Borrower;</FONT></DIV></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=90%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;within
forty-five (45) days after the end of each fiscal quarter, a Compliance Certificate, in
form and substance acceptable to Bank, showing Borrower&#146;s compliance with the
financial covenants set forth in Section 5.3 hereof;</FONT></DIV></TD>
</TR>
</TABLE>
<BR>


<BR>
<BR>
<BR>
<hr>
<PAGE>




<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=90%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;as
soon as possible, but in any event within ten (10) days after Borrower becomes aware
thereof, a written statement describing any reportable event or prohibited transaction
which has occurred with respect to any employee benefit plan and the action which
Borrower proposes to take with respect thereto;</FONT></DIV></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=90%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;as
soon as practicable, but in any event within ten (10) days after the filing with the
Securities and Exchange Commission, or any successor thereto, or any states&#146; securities
regulatory authority, copies of all registration statements and all periodic and special
reports required or permitted to be filed under federal or state securities laws and
regulations;</FONT></DIV></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=90%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;as
soon as practicable, but any event within ten (10) days after receipt by Borrower, a copy
of any notice, complaint, Lien, inquiry or claim (i) to the effect that Borrower is or
may be liable to any Person as a result of the release by Borrower, or any other Person
of any Hazardous Substance into the environment, or (ii) alleging any violation of any
Environmental Law by Borrower, which, in either case, could reasonably be expected to
have a Material Adverse Effect; and</FONT></DIV></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=90%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;such
other information as Bank may from time to time reasonably request.</FONT></DIV></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2.2. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Good
Standing</B>.&nbsp;&nbsp;&nbsp;&nbsp;Maintain, and cause each Subsidiary to maintain, its
corporate existence and right to do business in its state of organization and in such
other states wherein non-qualification is reasonably likely to have a Material Adverse
Effect.</FONT></DIV></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2.3. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Taxes,
Etc</B>.&nbsp;&nbsp;&nbsp;&nbsp;Pay and discharge, and cause each Subsidiary to pay and
discharge, all taxes, assessments, judgments, orders, and governmental charges or levies
imposed upon it or on its income or profits or upon its property prior to the date on
which penalties attach thereto and all lawful claims which, if unpaid, may become a Lien
or charge upon its Property, provided that Borrower and its Subsidiaries shall not be
required to pay any tax, assessment, charge, judgment, order, levy or claim, if such
payment is being contested diligently, in good faith, and by appropriate proceedings
which will prevent foreclosure or levy upon its Property and adequate reserves against
such liability have been established.</FONT></DIV></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2.4. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Maintain
Properties</B>.&nbsp;&nbsp;&nbsp;&nbsp;Maintain, and cause each Subsidiary to maintain,
all Properties and assets used by, or useful to, it in the ordinary course of its
business in good working order and condition, ordinary wear and tear excepted, and
suitable for the purpose for which it is intended, and from time to time, make any
necessary repairs and replacements.</FONT></DIV></TD>
</TR>
</TABLE>
<BR>



<BR>
<BR>
<BR>
<hr>
<PAGE>



<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2.5. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Insurance</B>.&nbsp;&nbsp;&nbsp;&nbsp;Maintain,
and cause each Subsidiary to maintain, in full force and effect public liability
insurance, business interruption insurance, worker&#146;s compensation insurance and
casualty insurance policies with coverages and with such companies as are reasonably
acceptable to Bank. Each such policy providing liability coverage shall be endorsed to
reflect Bank as an additional insured, and each such policy covering Properties pledged
as collateral to Bank shall have a lender&#146;s loss payable clause in favor of Bank,
and a copy of each policy, accompanied by a certificate of coverage issued by the
insurance carrier, shall be delivered to Bank. Such policy shall stipulate that the
insurance cannot be cancelled or materially modified without thirty (30) days&#146; prior
written notice to Bank and shall insure Bank notwithstanding the act or neglect of
Borrower or its Subsidiaries.</FONT></DIV></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2.6. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Books
and Records</B>.&nbsp;&nbsp;&nbsp;&nbsp;Keep proper books of account in which full, true
and correct entries will be made of all dealings and transactions of and in relation to
the business and affairs of Borrower and its Subsidiaries, and, at all reasonable times,
and as often as Bank may request, permit authorized representatives of Bank to (a) have
access to the premises and Properties of Borrower and its Subsidiaries and to the records
relating to the operations of Borrower and its Subsidiaries; (b) make copies of or
excerpts from such records; (c) discuss the affairs, finances and accounts of Borrower
with and be advised as to the same by the chief executive and financial officers of
Borrower; and (d) audit and inspect such books, records, accounts, memoranda and
correspondence at all reasonable times, to make such abstracts and copies thereof as Bank
may deem necessary, and to furnish copies of all such information to any proposed
purchaser of or participant in the Facilities.</FONT></DIV></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2.7. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Reports</B>.&nbsp;&nbsp;&nbsp;&nbsp;File,
and cause each Subsidiary to file, as appropriate, on a timely basis, annual reports,
operating records and any other reports or filings required to be made with any
Governmental Authority, except to the extent the failure to so file any of the foregoing,
individually or in the aggregate, is not reasonably likely to have a Material Adverse
Effect.</FONT></DIV></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2.8. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Licenses</B>.&nbsp;&nbsp;&nbsp;&nbsp;Maintain,
and cause each Subsidiary to maintain, in full force and effect all operating permits,
licenses, franchises, and rights used by it in the ordinary course of business, except to
the extent the failure to so maintain any of the foregoing, individually or in the
aggregate, is not reasonably likely to have a Material Adverse Effect.</FONT></DIV></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2.9. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Notice
of Material Adverse Change</B>.&nbsp;&nbsp;&nbsp;&nbsp;Give prompt notice in writing to
Bank of the occurrence of any development, financial or otherwise, including pending or
threatened litigation which is reasonably likely to have a Material Adverse Effect.</FONT></DIV></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2.10. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Compliance
with Law</B>.&nbsp;&nbsp;&nbsp;&nbsp;Comply, and cause each Subsidiary to comply, in all
material respects, with all laws, ordinances, rules, regulations and other legal
requirements applicable to it, including, without limitation, all Environmental Laws and
ERISA.</FONT></DIV></TD>
</TR>
</TABLE>
<BR>



<BR>
<BR>
<BR>
<hr>
<PAGE>




<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2.11. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Trade
Accounts</B>.&nbsp;&nbsp;&nbsp;&nbsp;Pay, and cause each Subsidiary to pay, all trade
accounts in accordance with standard industry practices.</FONT></DIV></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2.12. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Use
of Proceeds</B>.&nbsp;&nbsp;&nbsp;&nbsp;Use the proceeds of the Facilities solely for the
purposes herein described.</FONT></DIV></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2.13. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Loan
Payments</B>.&nbsp;&nbsp;&nbsp;&nbsp;Duly and punctually pay or cause to be paid
principal and interest on the Facilities in lawful money of the United States at the time
and places and in the manner specified herein according to the stated terms and the true
intent and meaning hereof.</FONT></DIV></TD>
</TR>
</TABLE>
<BR>


<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2.14. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Environmental
Matters</B>.&nbsp;&nbsp;&nbsp;&nbsp;(a) Use, operate and maintain, and cause each
Subsidiary to use, operate and maintain, all of its Properties in material compliance
with all applicable Environmental Laws, keep or acquire all necessary permits, approvals,
certificates, licenses and other authorizations relating to environmental matters in
effect and remain in material compliance therewith, and handle all Hazardous Substances
in material compliance with all applicable Environmental Laws, (b) within ninety (90)
days after filing thereof, have dismissed with prejudice any actions or proceedings
against Borrower or a Subsidiary relating to compliance with Environmental Laws which, in
the reasonable opinion of Bank, is reasonably likely to have a Material Adverse Effect,
and (c) diligently pursue cure of any material underlying environmental problem which
forms the basis of any claim, complaint, notice, Lien, inquiry, proceeding or action
referred to in Section 5.2.1(j) hereof. If Borrower or a Subsidiary is notified of any
event described in Section 5.2.1(j) hereof, Borrower shall, upon the request of Bank,
establish appropriate reserves against such potential liabilities and engage a firm or
firms of engineers or environmental consultants appropriately qualified to determine as
quickly as practical the extent of contamination and the potential financial liability of
Borrower or its Subsidiary with respect thereto, and Bank shall be provided with a copy
of any report prepared by such firm or by any Governmental Authority as to such matters
as soon as any such report becomes available to Borrower or such Subsidiary. The
selection of any engineers or environmental consultants engaged pursuant to the
requirements of this Section shall be subject to the approval of Bank, which approval
shall not be unreasonably withheld or delayed.</FONT></DIV></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2.15. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Banking
Relationship</B>.&nbsp;&nbsp;&nbsp;&nbsp;Maintain its primary banking accounts with Bank,
including, without limitation, operating, lockbox and autoline accounts.</FONT></DIV></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2.16. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Subordinated
Debt</B>.&nbsp;&nbsp;&nbsp;&nbsp;At all times, cause the Subordinated Debt to be
subordinated to the full, final and irrevocable payment of the Obligations, in form and
substance acceptable to Bank.</FONT></DIV></TD>
</TR>
</TABLE>
<BR>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
5.3&nbsp;&nbsp;&nbsp;&nbsp;<B>Financial
Covenants</B>.&nbsp;&nbsp;&nbsp;&nbsp;Until the Obligations shall have been
fully and finally paid and performed and so long as any commitment of Bank is
outstanding, unless expressly waived in writing by Bank, Borrower shall:</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3.1. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Senior
Debt Ratio</B>.&nbsp;&nbsp;&nbsp;&nbsp;Maintain its Senior Debt Ratio at not greater than
3.50 to 1.00 as of each fiscal quarter end.</FONT></DIV></TD>
</TR>
</TABLE>
<BR>



<BR>
<BR>
<BR>
<hr>
<PAGE>




<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3.2. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Fixed
Charge Coverage Ratio</B>.&nbsp;&nbsp;&nbsp;&nbsp;Maintain its Fixed Charge Coverage
Ratio at not less than 1.25 to 1.00 at each fiscal quarter end.</FONT></DIV></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3.3. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Tangible
Capital Funds</B>.&nbsp;&nbsp;&nbsp;&nbsp;Maintain its Tangible Net Worth plus
Subordinated Debt at not less than Seventeen Million Five Hundred Thousand Dollars
($17,500,000) as of June 30, 2004, and increasing as of each fiscal quarter end
thereafter by an amount equal to Twenty-Five Percent (25%) of Borrower&#146;s net income
(without reduction for any net losses) for such fiscal quarter.</FONT></DIV></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="ARTICLE -TNR" FSL="Default" -->
<A NAME=A012></A>
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
Article 6.&nbsp;&nbsp;&nbsp;&nbsp;C<small>ONDITIONS</small>
P<small>RECEDENT</small></FONT></P>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
6.1&nbsp;&nbsp;&nbsp;&nbsp;<B>Conditions to Initial
Advance</B>.&nbsp;&nbsp;&nbsp;&nbsp;The obligation of the Bank to make the
initial Advance under the Facilities is subject to satisfaction of each of the
following conditions precedent:</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1.1. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Authorization</B>.&nbsp;&nbsp;&nbsp;&nbsp;Bank
shall have received and approved, certified copies of Borrower&#146;s and each Guarantor&#146;s
articles of incorporation and by-laws, all as amended, accompanied by a recent
certificate of good standing issued by the appropriate official of its place of
organization and certificates of good standing from those states in which Borrower or a
Guarantor owns property or maintains an office and a certified copy of resolutions
adopted by Borrower&#146;s and each Guarantor&#146;s Board of Directors authorizing the
Facilities and specifying the names and capacities of those persons authorized to execute
and deliver the Loan Documents.</FONT></DIV></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1.2. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Insurance</B>.&nbsp;&nbsp;&nbsp;&nbsp;Borrower
shall have furnished to Bank evidence of the insurance required by this Agreement.</FONT></DIV></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1.3. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Loan
Documents</B>.&nbsp;&nbsp;&nbsp;&nbsp;Each of the Loan Documents, in the form prescribed
by Bank, shall have been executed and delivered by Borrower and the Guarantors, as
applicable, to Bank, and the other loan documents and guaranties required by this
Agreement, in the form prescribed by Bank, shall have been executed and delivered by the
appropriate parties thereto.</FONT></DIV></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1.4. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Incumbency</B>.&nbsp;&nbsp;&nbsp;&nbsp;Bank
shall have received an Incumbency Certificate, executed by the Secretary or Assistant
Secretary of Borrower and each Guarantor which shall identify the name and title and bear
the signature of the officers of Borrower and such Guarantor authorized to sign the Loan
Documents, and Bank shall be entitled to rely upon such certificate until informed of any
change in writing by Borrower.</FONT></DIV></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1.5. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Legal
Matters</B>.&nbsp;&nbsp;&nbsp;&nbsp;All legal matters incident to the Loan Documents and
the making of Advances shall be reasonably satisfactory to Bank and its counsel.</FONT></DIV></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1.6. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Borrowing
Base, Etc</B>.&nbsp;&nbsp;&nbsp;&nbsp;Satisfactory certificates as to Borrowing Base, and
such other certificates as Bank may reasonably require, shall have been executed by the
appropriate officers of Borrower and delivered to Bank.</FONT></DIV></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1.7. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Opinions
of Counsel</B>.&nbsp;&nbsp;&nbsp;&nbsp;Bank shall have received the favorable written
opinion(s) of counsel to Borrower and the Guarantors, dated of even date herewith, as to
those matters which Bank may reasonably require.</FONT></DIV></TD>
</TR>
</TABLE>
<BR>


<BR>
<BR>
<BR>
<hr>
<PAGE>




<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1.8. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Landlord
Waivers</B>.&nbsp;&nbsp;&nbsp;&nbsp;Borrower shall have used commercially reasonable best
efforts to procure landlord and warehousemen lien waivers, in the form prescribed by
Bank, pursuant to which its various landlords and warehousemen shall have waived all
liens or other rights of detainer against its assets constituting collateral for the
Obligations.</FONT></DIV></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1.9. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>UCC
Searches/Life Insurance Questionnaire</B>.&nbsp;&nbsp;&nbsp;&nbsp;Bank shall have
received satisfactory return after search in accordance with the Uniform Commercial Code
in such governmental offices as Bank shall have deemed appropriate, and Bank shall have
received a satisfactory life insurance questionnaire with respect to the life insurance
policy assigned to Bank.</FONT></DIV></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1.10. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Fees</B>.&nbsp;&nbsp;&nbsp;&nbsp;Borrower
shall have reimbursed Bank for all reasonable legal fees and other reasonable
out-of-pocket expenses of Bank in connection with the Facilities.</FONT></DIV></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1.11. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Regulation
U</B>.&nbsp;&nbsp;&nbsp;&nbsp;Bank shall have received such certificates and other
documents as it shall have deemed reasonably appropriate as to compliance with
Regulations U, T and X of the Board of Governors of the Federal Reserve System.</FONT></DIV></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1.12. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>No
Default</B>.&nbsp;&nbsp;&nbsp;&nbsp;As of the date hereof, and after giving effect to the
initial funding of the Facilities, there shall not exist a Default or Unmatured Default,
and Bank shall have received evidence satisfactory to Bank that the transactions
contemplated by this Agreement do not create a default under any agreement to which
Borrower is a party.</FONT></DIV></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1.13. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Consents</B>.&nbsp;&nbsp;&nbsp;&nbsp;All
consents necessary for the secured financing transaction contemplated by this Agreement
pursuant to the Loan Documents shall have been obtained.</FONT></DIV></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1.14. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Additional
Documentation</B>.&nbsp;&nbsp;&nbsp;&nbsp;Bank shall have received such other documents,
instruments, financing statements, waivers, certificates, reaffirmations, consents and
opinions as it may request.</FONT></DIV></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
6.2&nbsp;&nbsp;&nbsp;&nbsp;<B>Conditions to Subsequent
Advances</B>.&nbsp;&nbsp;&nbsp;&nbsp;Prior to each subsequent Advance under the
Line of Credit or the issuance of a Letter of Credit:</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2.1. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>No
Default</B>.&nbsp;&nbsp;&nbsp;&nbsp;No Default or Unmatured Default shall have occurred
and be continuing.</FONT></DIV></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2.2. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Representations
and Warranties</B>.&nbsp;&nbsp;&nbsp;&nbsp;Each representation and warranty contained in
Article 4 shall be true and correct as of the date of such Advance, except to the extent
any such representation or warranty relates solely to an earlier date and except for
changes reflecting transactions permitted by this Agreement.</FONT></DIV></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2.3. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Legal
Matters</B>.&nbsp;&nbsp;&nbsp;&nbsp;All legal matters incident to the making of such
Advance shall be reasonably satisfactory to Bank and its counsel.</FONT></DIV></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Default" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section 6.3&nbsp;&nbsp;&nbsp;&nbsp;
<B>General</B>.&nbsp;&nbsp;&nbsp;&nbsp;Each request for an Advance shall
constitute a representation and warranty by Borrower that the applicable
conditions contained in this Section 6.3 have been satisfied.</FONT></P>



<BR>
<BR>
<BR>
<hr>
<PAGE>




<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
Article 7.&nbsp;&nbsp;&nbsp;&nbsp;D<small>EFAULT</small>.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The occurrence of any of the
following events shall be deemed a Default hereunder:</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;any
representation or warranty made by or on behalf of Borrower, any Subsidiary or any
Affiliate to Bank under or in connection with any Loan Document or any subordination
agreement shall be false in any material respect as of the date on which made;</FONT></DIV></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Borrower
fails to make any payment of principal of or interest on the Facilities or any fee or
other payment Obligation in connection with the Facilities when due;</FONT></DIV></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the
breach of any of the covenants contained in Section 5.2.2, 5.2.4, 5.2.7, 5.2.8, 5.2.10,
5.2.11 or 5.2.14 which breach remains uncured for a period of thirty (30) days after
written notice to Borrower; or the breach of any other covenant contained in Article 5
hereof;</FONT></DIV></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the
breach of any other terms or provisions of the Loan Documents (other than a breach which
constitutes a Default under Article 7(a), (b) or (c) above) not cured within thirty (30)
days after written notice from Bank to Borrower specifying such breach;</FONT></DIV></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the
failure of Borrower or any Subsidiary to pay any other Indebtedness when due or within
any applicable grace or cure period; or the breach by Borrower or any Subsidiary of any
term, provision or condition contained in any agreement under which any such Indebtedness
was created or is governed, which constitutes a default thereunder, or any other event
shall occur or condition exist, the effect of which is to cause, or to permit the holder
or holders of such Indebtedness to cause such Indebtedness to become due prior to its
stated maturity, or any Indebtedness shall be declared to be due and payable or required
to be prepaid or repurchased (other than by a regularly scheduled payment) prior to the
stated maturity thereof;</FONT></DIV></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Borrower or any Subsidiary shall
(i) have an order for relief entered with respect to it under the Federal
Bankruptcy Code, (ii) not pay, or admit in writing its inability to pay, its
debts generally as they become due, (iii) make an assignment for the benefit of
creditors, (iv) apply for, seek, consent to, or acquiesce in, the appointment of
a receiver, custodian, trustee, examiner, liquidator or similar official for it
or any substantial part of its property, (v) institute any proceeding seeking an
order for relief under the Federal Bankruptcy Code or seeking to adjudicate it a
bankrupt or insolvent, or seeking dissolution, winding up, liquidation,
reorganization, arrangement, adjustment or composition of it or its debts under
any law relating to bankruptcy, insolvency or reorganization or relief of
debtors or fail to file an answer or other pleading denying the material
allegations of any such proceeding filed against it, or (vi) suspend operations
as presently conducted or discontinue doing business as an ongoing
concern;</FONT></DIV></TD>
</TR>
</TABLE>
<BR>



<BR>
<BR>
<BR>
<hr>
<PAGE>



<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;without
the application, approval or consent of Borrower or any Subsidiary, a receiver, trustee,
examiner, liquidator or similar official shall be appointed for Borrower or such
Subsidiary or any substantial part of its Property, or a proceeding described in item (f)
above shall be instituted against Borrower or any Subsidiary and such appointment
continues undischarged or such proceeding continues undismissed or unstayed for a period
of sixty (60) consecutive days;</FONT></DIV></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;any
Governmental Authority shall condemn, seize or otherwise appropriate, or take custody or
control of all or any substantial portion of the Property of Borrower or any Subsidiary;</FONT></DIV></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Borrower
or any Subsidiary shall fail within thirty (30) days to pay, bond or otherwise discharge
any judgment or order for the payment of money which is not stayed on appeal or otherwise
appropriately contested in good faith, or any attachment, levy or garnishment is issued
against any Property of Borrower or such Subsidiary;</FONT></DIV></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;if
there occurs a Change in Control;</FONT></DIV></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;there
occurs a &#147;<B>reportable event</B>&#148; or a &#147;<B>prohibited transaction</B>&#148; under, or
any complete or partial withdrawal from, or any other event which would constitute
grounds for termination of or the appointment of a trustee to administer, any &#147;<B>plan</B>&#148; maintained
by Borrower or any ERISA Affiliate for the benefit of its &#147;<B>employees</B>&#148; (as such
terms are defined in ERISA) which will have a Material Adverse Effect;</FONT></DIV></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;any
Loan Document shall for any reason fail to create a valid and perfected first priority
security interest in any collateral purported to be covered thereby (except as permitted
by the terms of any Loan Document), or any Loan Document shall fail to remain in full
force or effect or any action shall be taken to discontinue or to assert the invalidity
or unenforceability of, or the security interest created under, any Loan Document; or</FONT></DIV></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 2 -TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><DIV ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;any
Guaranty or any material provision thereof shall cease to be in full force or effect, or
any guarantor fails to promptly perform under its Guaranty, or any guarantor terminates
or revokes or attempts to terminate or revoke its Guaranty; or the breach by a guarantor
of any other term or provision of any Loan Document to which it is a party not cured
within thirty (30) days after written notice from Bank.</FONT></DIV></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="ARTICLE -TNR" FSL="Workstation" -->
<A NAME=A013></A>
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
Article 8.&nbsp;&nbsp;&nbsp;&nbsp;R<small>EMEDY</small></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
8.1&nbsp;&nbsp;&nbsp;&nbsp;<B>Acceleration</B>.&nbsp;&nbsp;&nbsp;&nbsp;If any
Default described in Article 7 item (f) or (g) occurs, the Facilities and the
commitment of Bank to make Advances under the Facilities shall automatically
terminate and the Obligations shall immediately become due and payable without
any election or action on the part of Bank. If any other Default occurs, Bank
may terminate its commitments hereunder and declare the Obligations to be due
and payable, whereupon the Obligations shall become immediately due and payable,
without presentment, demand, protest or notice of any kind, all of which
Borrower hereby expressly waives.</FONT></P>



<BR>
<BR>
<BR>
<hr>
<PAGE>



<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
8.2&nbsp;&nbsp;&nbsp;&nbsp;<B>Deposit to Secure Reimbursement
Obligations</B>.&nbsp;&nbsp;&nbsp;&nbsp;When any Default or Unmatured Default
has occurred and is continuing, Bank may demand that Borrower immediately pay to
Bank an amount equal to the aggregate outstanding amount of the Letters of
Credit and Borrower shall immediately upon any such demand make such payment.
Borrower hereby irrevocably grants to Bank a security interest in all funds
deposited to the credit of or in transit to any deposit account or fund
established pursuant to this Section 8.2, including, without limitation, any
investment of such fund. Borrower hereby acknowledges and agrees that Bank would
not have an adequate remedy at law for failure by Borrower to honor any demand
made under this Section 8.2 and Bank shall have the right to require Borrower
specifically to perform its undertakings in this Section 8.2 whether or not any
draws have been made under the Letters of Credit. In the event Bank makes a
demand pursuant to this Section 8.2, and Borrower makes the payment demanded,
Bank agrees to invest the amount of such payment for the account of Borrower and
at Borrower&#146;s risk and direction in short-term investments reasonably
acceptable to Bank.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
8.3&nbsp;&nbsp;&nbsp;&nbsp;<B>Subrogation</B>.&nbsp;&nbsp;&nbsp;&nbsp;Bank
shall, to the extent of any payments made by Bank under the Letters of Credit
that are not reimbursed to Bank, be subrogated to all rights of the beneficiary
of the Letters of Credit as to all obligations of Borrower with respect to which
such payment shall have been made by Bank.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
8.4&nbsp;&nbsp;&nbsp;&nbsp;<B>Remedy</B>.&nbsp;&nbsp;&nbsp;&nbsp;Upon the
occurrence and during the continuance of a Default, Bank may immediately proceed
to exercise all remedies available to it under the Loan Documents or otherwise
under applicable law. No right or remedy conferred upon or reserved to Bank
under the Loan Documents is intended to be exclusive of any other available
remedy or right, but each and every remedy shall be cumulative and concurrent
and shall be in addition to every other remedy now or hereafter existing at law
or in equity. No single or partial exercise of any power or right shall preclude
any further or other exercise of any power or right.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
8.5&nbsp;&nbsp;&nbsp;&nbsp;<B>Preservation of
Rights</B>.&nbsp;&nbsp;&nbsp;&nbsp;No delay or omission of Bank to exercise any
power or right under the Loan Documents shall impair such power or right or be
construed to be a waiver of any Default or an acquiescence therein, and any
single or partial exercise of any power or right shall not preclude other or
further exercise thereof or the exercise of any other power or right. No Advance
hereunder shall constitute a waiver of any of the conditions of Bank&#146;s
obligation to make further Advances, nor, in the event Borrower is unable to
satisfy any such condition, shall a waiver of such condition in any one instance
have the effect of precluding Bank from thereafter declaring such inability to
be a Default hereunder, unless such condition was permanently expressly waived
in writing by Bank. No course of dealing shall be binding upon Bank.</FONT></P>

<!-- MARKER FORMAT-SHEET="ARTICLE -TNR" FSL="Workstation" -->
<A NAME=A014></A>
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
Article 9.&nbsp;&nbsp;&nbsp;&nbsp;G<small>ENERAL</small> P<small>ROVISIONS</small></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
9.1&nbsp;&nbsp;&nbsp;&nbsp;<B>Benefit of
Agreement</B>.&nbsp;&nbsp;&nbsp;&nbsp;Bank will accept the Credit Note as
evidence of loans made in the ordinary course of its commercial banking
business. The terms and provisions of this Agreement, the Credit Note and the
other Loan Documents shall be binding upon and inure to the benefit of Borrower
and Bank and their respective successors and assigns of their entire interests,
except that Borrower shall not have the right to assign this
Agreement.</FONT></P>


<BR>
<BR>
<BR>
<hr>
<PAGE>



<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
9.2&nbsp;&nbsp;&nbsp;&nbsp;<B>Survival of
Representations</B>.&nbsp;&nbsp;&nbsp;&nbsp;All representations, warranties and
agreements of Borrower contained in the Loan Documents shall survive delivery of
the Credit Note and the making of the Facilities.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
9.3&nbsp;&nbsp;&nbsp;&nbsp;<B>Governmental
Regulation</B>.&nbsp;&nbsp;&nbsp;&nbsp;Anything contained in this Agreement to
the contrary notwithstanding, Bank shall not be obligated to extend credit to
Borrower in violation of any limitation or prohibition provided by any
applicable statute or regulation.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
9.4&nbsp;&nbsp;&nbsp;&nbsp;<B>Conflict</B>.&nbsp;&nbsp;&nbsp;&nbsp;This Agreement and the other Loan Documents shall be interpreted, wherever
possible, in a manner consistent with one another, but in the event of any irreconcilable
inconsistency, this Agreement shall control.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
9.5&nbsp;&nbsp;&nbsp;&nbsp;<B>Choice of Law</B>.&nbsp;&nbsp;&nbsp;&nbsp;The Loan
Documents (other than those containing a contrary express choice of law
provision) and the rights and obligations of the parties thereunder and
hereunder shall be governed by, and construed and interpreted in accordance with
the laws of the State of Indiana (but giving effect to federal laws applicable
to national banks), notwithstanding the fact that Indiana conflict of law rules
might otherwise require the substantive rules of law of another jurisdiction to
apply. Borrower hereby consents to the jurisdiction of any state or federal
court located within Marion County, Indiana. All service of process may be made
by messenger, certified mail, return receipt requested or by registered mail
directed to Borrower at the address indicated aside its signature to this
Agreement, and Borrower otherwise waives personal service of any and all process
made upon Borrower. Borrower waives any objection which Borrower may have to any
proceeding commenced in a federal or state court located within Marion County,
Indiana, based upon improper venue or forum non conveniens. Nothing contained in
this Section shall affect the right of Bank to serve legal process in any other
manner permitted by law or to bring any action or proceeding against Borrower or
its property in the courts of any other jurisdiction.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
9.6&nbsp;&nbsp;&nbsp;&nbsp;<B>Headings</B>.&nbsp;&nbsp;&nbsp;&nbsp;Section
headings in the Loan Documents are for convenience of reference only and shall
not govern the interpretation of any of the provisions of the Loan
Documents.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
9.7&nbsp;&nbsp;&nbsp;&nbsp;<B>Entire Agreement</B>.&nbsp;&nbsp;&nbsp;&nbsp;The
Loan Documents embody the entire agreement and understanding between Borrower
and Bank and supersede all prior agreements and understandings between Borrower
and Bank relating to the subject matter thereof, including the Original
Agreement.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
9.8&nbsp;&nbsp;&nbsp;&nbsp;<B>Expenses</B>.&nbsp;&nbsp;&nbsp;&nbsp;Borrower
shall reimburse Bank and its participants for any and all reasonable costs,
charges and out-of-pocket expenses (including reasonable attorneys&#146; fees
and time charges of attorneys for Bank), paid or incurred by Bank and its
participants in connection with the preparation, review, execution, delivery,
amendment, modification, administration, collection and enforcement of the
Facilities and/or the Loan Documents and in connection with the conduct by
Bank&#146;s internal auditors of periodic field and servicing audits of
Borrower, provided, so long as no Default exists, that Borrower shall not be
responsible for the payment of more than one audit per fiscal year and the cost
per audit shall not exceed Five Thousand Dollars ($5,000). Bank may pay or
deduct from the loan proceeds any of such expenses, and any proceeds so applied
shall be deemed to be Advances under this Agreement evidenced by the Credit Note
and secured by the Loan Documents, and shall bear interest at the rate of
interest provided in the Credit Note.</FONT></P>



<BR>
<BR>
<BR>
<hr>
<PAGE>




<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
9.9&nbsp;&nbsp;&nbsp;&nbsp;<B>Indemnification</B>.&nbsp;&nbsp;&nbsp;&nbsp;Borrower
agrees to indemnify Bank, and its successors and assigns (including any
purchaser of a participation in the Facilities), and their directors, officers
and employees, against all losses, claims, costs, damages, liabilities and
expenses, including, without limitation, all expenses of litigation or
preparation therefor (a &#147;Loss&#148;), which they may pay or incur in
connection with or arising out of the direct or indirect application of the
proceeds of the Facilities hereunder. The indemnity set forth herein shall be in
addition to any other Obligations of Borrower to Bank hereunder or at common law
or otherwise, and shall survive any termination of this Agreement, the
expiration of the obligation of Bank to make the Facilities and the payment of
all Obligations.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
9.10&nbsp;&nbsp;&nbsp;&nbsp;<B>Confidentiality</B>.&nbsp;&nbsp;&nbsp;&nbsp;Bank
agrees to treat all information received by it in connection with the Loan
Documents (except such information which is generally available or has been made
available to the public) as confidential, provided, however, that nothing in
this Section 9.10 shall prohibit Bank from, or subject Bank to liability for,
disclosing any such information to any Governmental Authority to whose
jurisdiction Bank is subject, and provided further that Bank may provide such
information to proposed purchasers of or participants in the Facilities from
time to time.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
9.11&nbsp;&nbsp;&nbsp;&nbsp;<B>Giving Notice</B>.&nbsp;&nbsp;&nbsp;&nbsp;Any
notice required or permitted to be given under this Agreement may be, and shall
be deemed effective if made in writing and delivered to the recipient&#146;s
address, telex number or facsimile number addressed to Borrower or Bank at the
addresses indicated aside their signatures to this Agreement by any of the
following means: (a) hand delivery, (b) United States first class mail, postage
prepaid, (c) registered or certified mail, postage prepaid, with return receipt
requested, (d) by a reputable rapid delivery service, (e) by telegraph or telex
when delivered to the appropriate office for transmission, charges prepaid, with
request for assurance of receipt in a manner typical with respect to
communication of that type or (f) by facsimile transmission if the transmitting
party receives confirmation of successful transmission. Notice made in
accordance with this Section shall be deemed given upon receipt if delivered by
hand or wire transmission, three (3) Banking Days after mailing if mailed by
first class, registered or certified mail, or one (1) Banking Day after deposit
with an overnight courier service if delivered by overnight courier. Borrower
and Bank may each change the address for service of notice upon it by a notice
in writing to the other parties hereto.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
9.12&nbsp;&nbsp;&nbsp;&nbsp;<B>Counterparts</B>.&nbsp;&nbsp;&nbsp;&nbsp;This
Agreement may be executed in any number of counterparts, all of which taken
together shall constitute one agreement, and any of the parties hereto may
execute this Agreement by signing any such counterpart. This Agreement shall be
effective when it has been executed by Borrower and Bank.</FONT></P>


<BR>
<BR>
<BR>
<hr>
<PAGE>



<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Default" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
9.13&nbsp;&nbsp;&nbsp;&nbsp;<B>Incorporation by
Reference</B>.&nbsp;&nbsp;&nbsp;&nbsp;All Exhibits hereto are incorporated
herein by this reference. Each of the other Loan Documents shall be made subject
to all of the terms, covenants, conditions, obligations, stipulations and
agreements contained in this Agreement to the same extent and effect as if fully
set forth therein, and this Agreement is made subject to all of the terms,
covenants, conditions, obligations, stipulations and agreements contained in the
other Loan Documents to the same extent and effect as if fully set forth
therein. The provisions of this Agreement, including, without limitation,
provisions relating to maintenance of insurance, are in addition to, and not a
limitation upon, the requirements of any other Loan Document or any
subordination agreement.</FONT></P>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
9.14&nbsp;&nbsp;&nbsp;&nbsp;<B>Time of Essence</B>.&nbsp;&nbsp;&nbsp;&nbsp;Time
is of the essence under the Loan Documents.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
9.15&nbsp;&nbsp;&nbsp;&nbsp;<B>No Joint
Venture</B>.&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding anything to the contrary
herein contained or implied, Bank, by this Agreement, or by any action pursuant
hereto, shall not be deemed to be a partner of, or a joint venturer with,
Borrower, and Borrower hereby indemnifies and agrees to defend and hold Bank
harmless, including the payment of reasonable attorneys&#146; fees, from any
Loss resulting from any judicial construction of the parties&#146; relationship
as such.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
9.16&nbsp;&nbsp;&nbsp;&nbsp;<B>Relationship of Parties; Release of Consequential
Damages</B>.&nbsp;&nbsp;&nbsp;&nbsp;The relationship between Borrower and Bank
shall be solely that of borrower and lender. Bank shall not have any fiduciary
responsibilities to Borrower. Bank undertakes no responsibility to Borrower to
review or inform Borrower of any matter in connection with any phase of
Borrower&#146;s business or operations. Bank shall not have any liability with
respect to, and Borrower hereby waives, releases and agrees not to sue for, any
special or consequential damages suffered by it in connection with, arising out
of, or in any way related to the Loan Documents or the transactions contemplated
thereby.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
9.17&nbsp;&nbsp;&nbsp;&nbsp;<B>Severability</B>.&nbsp;&nbsp;&nbsp;&nbsp;In the
event any provision of this Agreement or any of the Loan Documents shall be held
invalid or unenforceable by any court of competent jurisdiction, such holding
shall not affect the validity, enforceability or legality of the remaining
provisions hereof or thereof, all of which shall continue unaffected and
unimpaired thereby.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
9.18&nbsp;&nbsp;&nbsp;&nbsp;<B>Gender</B>.&nbsp;&nbsp;&nbsp;&nbsp;As used
herein, the masculine gender shall be deemed to include the feminine and the
neuter and the singular number shall also include the plural.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
9.19&nbsp;&nbsp;&nbsp;&nbsp;<B>Waiver and
Amendment</B>.&nbsp;&nbsp;&nbsp;&nbsp;Borrower and Bank may enter into
agreements supplemental hereto for the purpose of adding or modifying provisions
of this Agreement or changing the respective rights, powers, privileges, duties,
liabilities, covenants or obligations of Bank or Borrower or waiving any Default
hereunder, provided, however, that no such agreements supplemental shall be
binding unless in writing and duly signed by the parties hereto, and then only
to the extent specifically set forth therein.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
9.20&nbsp;&nbsp;&nbsp;&nbsp;<B>Bank Not in
Control</B>.&nbsp;&nbsp;&nbsp;&nbsp;None of the covenants or other provisions
contained in the Loan Documents shall, or shall be deemed to, give Bank the
right or power to exercise control over the affairs and/or management of
Borrower, the power of Bank being limited to the right to exercise the remedies
provided in the Loan Documents, provided, however, that if Bank becomes the
owner of any stock or other equity interest in any Person, whether through
foreclosure or otherwise, Bank shall be entitled (subject to requirements of
law) to exercise such legal rights as it may have by virtue of being the owner
of such stock or other equity interest in such Person.</FONT></P>


<BR>
<BR>
<BR>
<hr>
<PAGE>




<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
9.21&nbsp;&nbsp;&nbsp;&nbsp;<B>Waiver Of Jury
Trial</B>.&nbsp;&nbsp;&nbsp;&nbsp;B<small>ANK</small> A<small>ND</small>
B<small>ORROWER</small>, A<small>FTER</small> C<small>ONSULTING</small>
O<small>R</small> H<small>AVING</small> H<small>AD</small> T<small>HE</small>
O<small>PPORTUNITY</small> T<small>O</small> C<small>ONSULT</small>
W<small>ITH</small> C<small>OUNSEL</small>, K<small>NOWINGLY</small>,
V<small>OLUNTARILY</small>, I<small>NTENTIONALLY</small>,
U<small>NCONDITIONALLY</small> A<small>ND</small> I<small>RREVOCABLY</small>
W<small>AIVE</small> A<small>NY</small> R<small>IGHT</small>
E<small>ITHER</small> O<small>F</small> T<small>HEM</small> M<small>AY</small>
H<small>AVE</small> T<small>O</small> A T<small>RIAL</small> B<small>Y</small>
J<small>URY</small> I<small>N</small> A<small>NY</small>
L<small>ITIGATION</small> B<small>ASED</small> U<small>PON</small>
O<small>R</small> A<small>RISING </small>O<small>UT</small> O<small>F</small>
T<small>HIS</small> A<small>GREEMENT</small> O<small>R</small>
A<small>NY</small> O<small>THER</small> L<small>OAN</small>
D<small>OCUMENT</small> O<small>R</small> A<small>NY</small> O<small>F</small>
T<small>HE</small> T<small>RANSACTIONS</small> C<small>ONTEMPLATED</small>
B<small>Y</small> T<small>HIS</small> A<small>GREEMENT</small> O<small>R</small>
A<small>NY</small> C<small>OURSE</small> O<small>F</small>
C<small>ONDUCT</small>, D<small>EALING,</small> S<small>TATEMENTS</small>
(W<small>HETHER</small> O<small>RAL</small> O<small>R</small>
W<small>RITTEN</small>), O<small>R</small> A<small>CTIONS
</small>O<small>F</small> E<small>ITHER</small> O<small>F</small>
T<small>HEM</small>. N<small>EITHER</small> B<small>ANK</small>
N<small>OR</small> B<small>ORROWER</small> S<small>HALL</small>
S<small>EEK</small> T<small>O</small> C<small>ONSOLIDATE</small>,
B<small>Y</small> C<small>OUNTERCLAIM</small> O<small>R</small>
O<small>THERWISE</small>, A<small>NY</small> A<small>CTION</small>
I<small>N</small> W<small>HICH</small> A J<small>URY</small>
T<small>RIAL</small> H<small>AS</small> B<small>EEN</small>
W<small>AIVED</small> W<small>ITH</small> A<small>NY</small>
O<small>THER</small> A<small>CTION</small> I<small>N</small>
W<small>HICH</small> A J<small>URY</small> T<small>RIAL</small>
C<small>ANNOT</small> B<small>E</small> O<small>R</small> H<small>AS</small>
N<small>OT</small> B<small>EEN</small> W<small>AIVED</small>.
T<small>HESE</small> P<small>ROVISIONS</small> S<small>HALL</small>
N<small>OT</small> B<small>E</small> D<small>EEMED</small> T<small>O</small>
H<small>AVE</small> B<small>EEN</small> M<small>ODIFIED</small>
I<small>N</small> A<small>NY</small> R<small>ESPECT</small> O<small>R</small>
R<small>ELINQUISHED</small> B<small>Y</small> E<small>ITHER</small>
B<small>ANK</small> O<small>R</small> B<small>ORROWER</small>
EX<small>CEPT</small> B<small>Y</small> A W<small>RITTEN</small>
I<small>NSTRUMENT</small> E<small>XECUTED</small> B<small>Y</small>
B<small>OTH</small> O<small>F</small> T<small>HEM</small>.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I<small>N</small>
W<small>ITNESS</small> W<small>HEREOF</small>, Borrower and Bank have caused
this Agreement to be executed by their respective officers duly authorized as of
the date first above written. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Default" -->
<P ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
[Remainder of page intentionally left blank]</FONT></P>




<BR>
<BR>
<BR>
<hr>
<PAGE>





<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
S<small>IGNATURE</small> P<small>AGE</small> O<small>F</small><BR>
B<small>IOANALYTICAL SYSTEMS</small>, I<small>NC.</small><BR> T<small>O</small>
A<small>MENDED AND</small> R<small>ESTATED</small> C<small>REDIT</small>
A<small>GREEMENT</small><BR>
</FONT></P><BR>
<BR>
<BR>
<BR>

<!-- MARKER FORMAT-SHEET="Signature Block" FSL="Workstation" -->
<TABLE WIDTH=100% CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=40%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;</FONT></TD>
<TD WIDTH=40%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
"<B>B<small>ORROWER</small></B>"<BR>
<BR>
B<small>IOANALYTICAL</small> S<small>YSTEMS</small>, I<small>NC.</small><BR>
<BR>
<BR>
<BR>
By:&nbsp;&nbsp;/s/ Michael R. Cox<hr>
<BR>

Its:&nbsp;&nbsp;VP &#151; Finance<hr>
</font></TD>
<TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;</FONT></TD>
</TR>
</TABLE>
<BR>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Address:<BR>
<BR>
2701 Kent Avenue<BR>
West Lafayette, IN 47906<BR>
Attention:&nbsp;&nbsp;President<BR>
Facsimile:&nbsp;&nbsp;(765) 497-1102
</FONT></P>

<BR>
<BR>
<BR>
<hr>
<PAGE>







<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
S<small>IGNATURE</small> P<small>AGE</small> O<small>F</small><BR>

N<small>ATIONAL</small> C<small>ITY</small> B<small>ANK OF</small> I<small>NDIANA</small><BR>

T<small>O</small>A<small>MENDED AND</small> R<small>ESTATED</small> C<small>REDIT</small>
A<small>GREEMENT</small><BR>
</FONT></P><BR>
<BR>
<BR>
<BR>

<!-- MARKER FORMAT-SHEET="Signature Block" FSL="Workstation" -->
<TABLE WIDTH=100% CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=40%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;</FONT></TD>
<TD WIDTH=40%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
"<B>B<small>ANK</small></B>"<BR>
<BR>
N<small>ATIONAL</small> C<small>ITY</small> B<small>ANK</small> <small>OF</small> I<small>NDIANA</small>, <small>AS SUCCESSOR</small><BR>
<small>TO</small> T<small>HE</small> P<small>ROVIDENT</small> B<small>ANK</small><BR>
<BR>
<BR>
<BR>
By:&nbsp;&nbsp;Michael C. Callas<hr>
<BR>

Its:&nbsp;&nbsp;Vice President<hr>
</font></TD>
<TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;</FONT></TD>
</TR>
</TABLE>
<BR>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Address:<BR>
One National City Center, #200E<BR>
Indianapolis, Indiana 46255<BR>
Attention:&nbsp;&nbsp;Michael C. Callas<BR>
Facsimile:&nbsp;&nbsp;317-267-6249
</FONT></P>

<BR>
<BR>
<BR>
<hr>



<PAGE>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
S<small>CHEDULE</small> 1<BR>
<BR>
<BR>
P<small>ERMITTED</small> E<small>NCUMBRANCES</small><BR>
<BR>
<BR>
None
</FONT></P>

<PAGE>



<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
S<small>CHEDULE</small> 4.7<BR>
<BR>
<BR>
S<small>UBSIDIARIES</small><BR>
<BR>
<BR>
</FONT></P>


<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>BAS Evansville, Inc., an Indiana corporation and wholly-owned subsidiary of the
Borrower.<BR>
<BR>
BASi Maryland, Inc., a Maryland corporation and wholly-owned subsidiary of the
Borrower.<BR>
<BR>
Bioanalytical Systems, Ltd., a private limited company organized under the laws
of England and wholly-owned subsidiary of the Borrower.<BR>
<BR>
BAS Instruments, Ltd., a private limited company organized under the laws of
England and wholly-owned subsidiary of the Borrower.<BR>
<BR>
BAS Analytics, Ltd., a private limited company organized under the laws of
England and wholly-owned subsidiary of the Borrower.<BR>
<BR>
BASi Northwest Laboratory, Inc., a California corporation and wholly-owned
subsidiary of the Borrower, is also qualified to do business in Oregon and New
Jersey.
</FONT></P>


<PAGE>




<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
S<small>CHEDULE</small> 4.10 <small>AND</small> 5.1.6<BR>
<BR>
<BR>
O<small>THER</small> I<small>NDEBTEDNESS</small><BR>
<BR>
<BR>
</FONT></P>


<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Master Lease Agreement by and between the Borrower and Banc One Leasing
Corporation dated on or about July 3, 2002 with a maximum funding amount at
$1,500,000 and cut-off date as April 1, 2003.</FONT></P>





<PAGE>




<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
S<small>CHEDULE</small> 4.13<BR>
<BR>
<BR>
M<small>ATERIAL</small> P<small>ENDING</small> <small>OR</small>
T<small>HREATENED</small> L<small>ITIGATION</small><BR>
<BR>
<BR>
</FONT></P>


<P ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
None</FONT></P>





<PAGE>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
S<small>CHEDULE</small> 5.1.7<BR>
<BR>
<BR>
E<small>XISTING</small> I<small>NVESTMENTS</small><BR>
<BR>
<BR>
</FONT></P>


<P ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
None</FONT></P>




</BODY>
</HTML>


</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.6
<SEQUENCE>7
<FILENAME>replacepromisnote.htm
<DESCRIPTION>REPLACEMENT PROMISSORY NOTE
<TEXT>


<HTML>
<HEAD>
<TITLE>Replacement Promissory Note</TITLE>
</HEAD>
<BODY>



<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
<B><Big>R</Big>EPLACEMENT <Big>P</Big>ROMISSORY <Big>N</Big>OTE</B></FONT></P>
<BR>


<!-- MARKER FORMAT-SHEET="Signature Block" FSL="Workstation" -->
<TABLE WIDTH=100% CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
$6,000,000.00</FONT></TD>
<TD align=right WIDTH=50%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Dated:&nbsp;&nbsp;January 4, 2005<BR>
Indianapolis, Indiana
</font>
</TD>
</TR>
</TABLE>
<BR>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FOR VALUE RECEIVED, the
undersigned BIOANALYTICAL SYSTEMS, INC., an Indiana corporation (the
"Borrower"), hereby promises to pay to the order of NATIONAL CITY BANK OF
INDIANA, as successor to The Provident Bank ("Bank"), or its assigns, at its
principal office at Indianapolis, Indiana, or at such other place as the holder
hereof may designate in writing, in lawful money of the United States of America
and in immediately available funds, the principal sum of Six Million Dollars
($6,000,000), or so much thereof as may be advanced and outstanding from time to
time, together with interest on the unpaid principal balance existing from time
to time at the per annum rates and on the dates set forth in the Agreement
(hereinafter defined). The entire unpaid balance of principal, and all accrued
and unpaid interest thereon, shall be due and payable on the Facility 1 Maturity
Date, and Borrower shall make such mandatory principal payments as are required
to be made under the terms of Section 2.3 of the Agreement.
</FONT></P>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Bank shall, and is hereby
authorized to, record in accordance with its usual practice, the date and amount
of each advance and each principal payment hereunder.</FONT></P>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Note is issued pursuant to,
is entitled to the benefit of, and is subject to the provisions of that certain
Amended and Restated Credit Agreement between Borrower and Bank dated of even
date herewith (as the same may be amended from time to time, the "Agreement").
Advances under this Note shall be made in accordance with the Agreement. The
Agreement, among other things, contains a description of the collateral securing
this Note, the definitions of the proper nouns used herein and provisions for
acceleration of the maturity hereof upon the happening of certain stated
events.</FONT></P>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject to the terms of the
Agreement, Borrower may borrow, prepay, reborrow and repay the principal amount
of this Note at any time and from time to time.
</FONT></P>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If Borrower fails to make the
payment of any installment of principal or interest, as provided in the
Agreement, when due, or upon the occurrence of any other Default, then in any of
such events, or at any time thereafter prior to such Default being cured, the
entire principal balance of this Note, and all accrued and unpaid interest
thereon, irrespective of the maturity date specified herein, together with
reasonable attorneys' fees and other costs incurred in collecting or enforcing
payment or performance hereof and with interest from the date of Default on the
unpaid principal balance hereof at the Default rate specified in the Agreement,
shall, at the election of the holder hereof (except as otherwise provided for
automatic acceleration on the occurrence of certain Defaults specified in the
Agreement), and without relief from valuation and appraisement laws, become
immediately due and payable.</FONT></P>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If any payment is not received
by Bank within ten (10) days after its due date, Bank may assess and Borrower
agrees to pay a late fee equal to the greater of: (a) five percent (5%) of the
past due amount, or (b) Twenty Dollars ($20.00). This late fee shall be in
addition to, and not in lieu of, any other remedy Bank may have and is in
addition to any reasonable fees and charges of any attorneys which Bank is
entitled to employ, whether authorized herein or by law.</FONT></P>



<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2><hr>
Page 1 of a Note containing Two Pages dated January 4, 2005 from BIOANALYTICAL
SYSTEMS, INC. to NATIONAL CITY BANK OF INDIANA.</FONT></P>




<PAGE>




<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Borrower and all endorsers,
guarantors, sureties, accommodation parties hereof and all other parties liable
or to become liable for all or any part of this indebtedness, severally waive
demand, presentment for payment, notice of dishonor, protest and notice of
protest and expressly agree that this Note and any payment coming due under it
may be extended or otherwise modified from time to time without in any way
affecting their liability hereunder.</FONT></P>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Note completely replaces
that certain Promissory Note dated October 29, 2002 from Borrower to Bank in the
face amount of $6,000,000, and continues to represent the same indebtedness as
evidenced by such Promissory Note.</FONT></P>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Note shall be construed
according to and governed by the laws of the State of Indiana. Notice of
acceptance of this Note is hereby waived by Borrower.</FONT></P>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any action, claim, counterclaim,
crossclaim, proceeding, or suit, whether at law or in equity, whether sounding
in tort, contract, or otherwise at any time arising under or in connection with
this Note or any other Loan Document, the administration, enforcement, or
negotiation of this Note or any other Loan Document, or the performance of any
obligation in respect of this Note or any other Loan Document (each such action,
claim, counterclaim, crossclaim, proceeding, or suit, an "Action") may be
brought in any federal or state court located in Marion County, Indiana.
Borrower hereby unconditionally submits to the jurisdiction of any such court
with respect to each such Action and hereby waives any objection Borrower may
now or hereafter have to the venue of any such Action brought in any such court.
BORROWER HEREBY, AND EACH HOLDER OF THIS NOTE, BY TAKING POSSESSION HEREOF,
KNOWINGLY AND VOLUNTARILY WAIVES JURY TRIAL IN RESPECT OF ANY ACTION.</FONT></P>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF, Borrower has
caused this Note to be executed by its duly authorized officer as of the day and
year first hereinabove written.
</FONT></P>

<!-- MARKER FORMAT-SHEET="Signature Block" FSL="Workstation" -->
<TABLE WIDTH=100% CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=60%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;</FONT></TD>
<TD WIDTH=40%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
B<small>IOANALYTICAL</small> S<small>YSTEMS,</small> I<small>NC.</small><BR>
<BR>
<BR>
<BR>
By:&nbsp;&nbsp;/s/&nbsp;&nbsp;Michael R. Cox<HR>
<BR>
Its:&nbsp;&nbsp;VP &#151; Finance<HR></font>
</TD>
</TR>
</TABLE>

<BR>
<BR>
<BR>
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2><hr>
Page 2 of a Note containing Two Pages dated January 4, 2005 from BIOANALYTICAL
SYSTEMS, INC. to NATIONAL CITY BANK OF INDIANA.</FONT></P>


</BODY>
</HTML>


</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-10.7
<SEQUENCE>8
<FILENAME>amendgensecagree.htm
<DESCRIPTION>AMENDED & RESTATED GEN. SEC. AGREE.
<TEXT>

<HTML>
<HEAD>
<TITLE>Amended and Restated General Security Agreement</TITLE>
</HEAD>
<BODY>


<P ALIGN=CENTER>
<FONT FACE="Times New Roman, Times, Serif" SIZE=3>
<B><Big>A</Big><small>MENDED AND</small> <Big>R</Big><small>ESTATED</small><BR>
<BIG>G</BIG><small>ENERAL</small> <BIG>S</BIG><small>ECURITY</small>
<BIG>A</BIG><small>GREEMENT</small></B></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Default" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Amended and Restated
General Security Agreement (&#147;<B>Security Agreement</B>&#148;) is made as of the
4th day of January, 2005, by Bioanalytical Systems, Inc., an Indiana
corporation, having its chief executive offices at 2701 Kent Avenue, West
Lafayette, Indiana (Taxpayer I.D. No. 35-1345024) (the &#147;<B>Borrower</B>&#148;), in
favor of National City Bank of Indiana, as successor to The Provident Bank,
having a notice address of One National City Center, #200E, Indianapolis,
Indiana 46255 (the &#147;<B>Bank</B>&#148;). </FONT></P>


<!-- MARKER FORMAT-SHEET="ARTICLE -TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=3>Article
1.&nbsp;&nbsp;&nbsp;&nbsp;D<small>EFINITIONS</small></FONT></P>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
1.1&nbsp;&nbsp;&nbsp;&nbsp;<B>Defined Terms</B>.&nbsp;&nbsp;&nbsp;&nbsp;As used
herein:</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>&#147;Accounts&#148;,
&#147;Inventory&#148;, &#147;Equipment&#148;, &#147;Fixtures&#148;,
&#147;General Intangibles&#148;, &#147;Chattel Paper&#148;,
&#147;Documents&#148;, &#147;Goods&#148;, &#147;Deposit Accounts&#148;,
&#147;Instruments&#148;, &#147;Investment Property&#148;</B> and
<B>&#147;Proceeds&#148;</B> shall mean all of Borrower&#146;s such property
within the meanings ascribed in the Indiana Uniform Commercial Code, as in
effect from time to time. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Account
Debtor</B>&#148; shall have the meaning ascribed in the Indiana Uniform
Commercial Code, as in effect from time to time. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Collateral</B>&#148;
shall mean all of the Borrower&#146;s property or rights in which a security
interest is granted hereunder. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Collateral
Account</B>&#148; shall mean the Deposit Account more fully described in Section
4.5. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Control</B>&#148; shall
have the meaning ascribed in the Indiana Uniform Commercial Code, as in effect
from time to time. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Credit
Agreement</B>&#148; shall mean the Amended and Restated Credit Agreement
executed between the Borrower and the Bank of even date, as amended from time to
time. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Foreign
Subsidiaries</B>&#148; shall have the meaning set forth in Part B of <B>Schedule 4</B>
hereto. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Intellectual
Property</B>&#148; shall mean all intellectual property of the Borrower,
including, without limitation, (a) all patents, patent applications, patent
disclosures and inventions (whether or not patentable and whether or not reduced
to practice); (b) all trademarks, service marks, trade dress, trade names, and
corporate names and all the goodwill and quality control standards associated
therewith; (c) all registered and unregistered statutory and common law
copyrights; (d) all registrations, applications and renewals for any of the
foregoing; (e) all trade secrets, confidential information, ideas, formulae,
compositions, knowhow, manufacturing and production processes and techniques,
research and development information, drawings, specifications, designs, plans,
improvements, proposals, technical and computer data, financial, business and
marketing plans, and customer and supplier lists and related information; (f)
all other proprietary rights (including, without limitation, all computer
software and documentation and all license agreements and sublicense agreements
to and from third parties relating to any of the foregoing); (g) all copies and
tangible embodiments of the foregoing in whatever form or medium; (h) all
damages and payments for past, present and future infringements of the
foregoing; (i) all royalties and income due with respect to the foregoing; and
(j) the right to sue and recover for past, present and future infringements of
the foregoing. </FONT></P>


<hr>

<PAGE>


<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Liabilities</B>&#148;
shall mean (a) all Obligations including all future advances; (b) all other time to time
obligations of the Borrower to the Bank of every type and description, direct or indirect,
absolute or contingent, due or to become due, now existing or hereafter arising, and
whether or not contemplated by the Borrower or the Bank as of the date of this Security
Agreement, including, without limitation, any modification, extension, or addition to or
of the Obligations or the Credit Agreement and any overlying advances, out of formula
advances and overdrafts made or permitted in connection with the Obligations or other
Liabilities; and (c) any duty of the Borrower to act or to refrain from acting in
connection with any Liability. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Obligations</B>&#148;
shall have the meaning ascribed in the Credit Agreement. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Schedule
of Accounts</B>&#148; shall have the meaning ascribed in Section 4.3. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<B>Stock Rights</B>&#148;
means any securities, dividends or other distributions and any other right or
property which the Borrower shall receive or shall become entitled to receive
for any reason whatsoever with respect to, in substitution for or in exchange
for any securities or other ownership interests in a corporation, partnership,
joint venture or limited liability company constituting Collateral and any
securities, any right to receive securities and any right to receive earnings,
in which the Borrower now has or hereafter acquires any right, issued by an
issuer of such securities, other than securities that would cause
Borrower&#146;s pledge to Bank to exceed Sixty-Five Percent (65%) of
Borrower&#146;s interest in Foreign Subsidiaries. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
1.2&nbsp;&nbsp;&nbsp;&nbsp;<B>Incorporation of Credit Agreement
Definitions</B>.&nbsp;&nbsp;&nbsp;&nbsp;Other capitalized terms used herein and
not specifically herein defined shall have the meanings ascribed to them in the
Credit Agreement. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
1.3&nbsp;&nbsp;&nbsp;&nbsp;<b>Terms Defined in the Indiana Uniform Commercial
Code</b>.&nbsp;&nbsp;&nbsp;&nbsp;Terms defined in the Indiana Uniform Commercial
Code which are not otherwise defined in this Security Agreement are used herein
as defined in the Indiana Uniform Commercial Code, as in effect from time to
time.</FONT></P>

<!-- MARKER FORMAT-SHEET="ARTICLE -TNR" FSL="Workstation" -->
<A NAME=A003></A>
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=3>Article
2.&nbsp;&nbsp;&nbsp;&nbsp;S<small>ECURITY</small> I<small>NTEREST</small>
<small>IN</small> C<small>OLLATERAL</small></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As security for the payment and
performance of the Liabilities, the Bank shall have, and the Borrower does
hereby grant to the Bank, a continuing security interest in the following
Collateral: </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
All Accounts, Deposit Accounts, General Intangibles, Documents, Instruments,
Investment Property, Chattel Paper and any other similar rights of the Borrower
however created or evidenced, whether now existing or hereafter owned, acquired,
created, used, or arising, specifically including, without limitation, claims,
leases, agreements, license agreements, licensing fees, royalties, policies,
credit insurance, guaranties, letters of credit, advices of credit, binders or
certificates of insurance, deposits, documents of title, securities, security
interests, licenses, goodwill, tax refunds (federal, state or local), customer
lists, franchises, franchise rights, drawings, designs, marketing rights,
computer programs, artwork, databases and other like business property rights,
all applications to acquire such rights, for which application may at any time
be made by the Borrower, together with any and all books and records pertaining
thereto and any right, title or interest in any Inventory which gave rise to an
Account, and all Intellectual Property throughout the world, but specifically
excluding the shares of capital stock or other equity interest of Borrower in
the Foreign Subsidiaries;</FONT></P>

<BR>
<BR>
<p><FONT FACE="Times New Roman, Times, Serif" SIZE=2><HR>
A<SMALL>MENDED AND </SMALL>R<SMALL>ESTATED</SMALL> G<SMALL>ENERAL</SMALL>
S<SMALL>ECURITY</SMALL> A<SMALL>GREEMENT</SMALL>&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
P<small>AGE</small> 2</FONT></P>

<PAGE>




<!-- MARKER FORMAT-SHEET="Para (List) Indent Lv 0- TNR" FSL="Workstation" -->

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
All Inventory, whether now existing or hereafter acquired and wherever located,
specifically including, without limitation, all merchandise, personal property,
raw materials, work in process, finished Goods, materials and supplies of every
nature usable or useful in connection with the manufacturing, packing, shipping,
advertising, selling, leasing or furnishing of any of such Inventory and all
materials of the Borrower used or consumed or to be used or consumed in the
Borrower&#146;s business, together with any and all books and records pertaining
thereto;</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
All Equipment, Goods and all other tangible personal property of the Borrower of
every kind or nature, whether now owned or hereafter acquired, wherever located,
specifically including, without limitation, all machinery, trucks, boats,
barges, on and off the road vehicles, forklifts, tools, dies, jigs, presses,
appliances, implements, improvements, accessories, attachments, parts,
components, partitions, systems, and apparatus, but specifically excluding
Fixtures;</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Sixty-Five Percent (65%) of the outstanding capital stock or other equity
interests of each Foreign Subsidiary owned by Borrower;</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
All products and Proceeds of each of the foregoing, specifically including,
without limitation, (i) any and all Proceeds of any insurance, indemnity,
warranty or guaranty payable to the Borrower from time to time, (ii) any and all
payments of any form whatsoever made or due and payable to the Borrower from
time to time in connection with any requisition, confiscation, condemnation,
seizure or forfeiture of all or any part of the foregoing by any Governmental
Authority or any Person acting under color of Governmental Authority, (iii) to
the extent of the value of Collateral, claims arising out of the loss,
nonconformity, or interference with the use of, defects or infringement of
rights in, or damage to, the Collateral, (iv) any Stock Rights, and (v) any and
all other amounts from time to time paid or payable under or in connection with
any of the foregoing, whether or not in lieu thereof;</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
All renewals, extensions, replacements, modifications, additions, improvements,
accretions, accessions, betterments, substitutions, replacements, annexations,
tools, accessories, parts and the like now in, attached to or which may
hereafter at any time be placed in or added to any Collateral, whether or not of
like kind; and</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
All rights, remedies, claims and demands under or in connection with each of the
foregoing.</FONT></P>

<BR>
<BR>
<p><FONT FACE="Times New Roman, Times, Serif" SIZE=2><HR>
A<SMALL>MENDED AND </SMALL>R<SMALL>ESTATED</SMALL> G<SMALL>ENERAL</SMALL>
S<SMALL>ECURITY</SMALL> A<SMALL>GREEMENT</SMALL>&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
P<small>AGE</small> 3</FONT></P>

<PAGE>




<!-- MARKER FORMAT-SHEET="ARTICLE -TNR" FSL="Workstation" -->
<A NAME=A004></A>
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
Article 3.&nbsp;&nbsp;&nbsp;&nbsp;R<small>EPRESENTATIONS AND
</small>W<small>ARRANTIES</small></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To induce the Bank to enter into
the Credit Agreement and to make each and every loan and other financial
accommodation thereunder, the Borrower represents and warrants to the Bank that,
except as may otherwise be provided in the Credit Agreement: </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
3.1&nbsp;&nbsp;&nbsp;&nbsp;<B>Names of Borrower</B>.&nbsp;&nbsp;&nbsp;&nbsp;The
exact corporate name of the Borrower and its state of organization are each
correctly stated in the preamble to this Security Agreement. Set forth on
Schedule 1 hereto is a true, accurate and complete list of all previous legal
names of the Borrower and all past and present assumed (or fictitious) names and
tradenames of the Borrower for the past six (6) years. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
3.2&nbsp;&nbsp;&nbsp;&nbsp;<B>Prior
Combinations</B>.&nbsp;&nbsp;&nbsp;&nbsp;Except as set forth on Schedule 1
hereto, the Borrower has not ever been conducted as a partnership or
proprietorship, no entity has merged into the Borrower or has been consolidated
with the Borrower, and no entity has sold substantially all of its assets to the
Borrower or sold assets to the Borrower outside the ordinary course of such
entity&#146;s business. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
3.3&nbsp;&nbsp;&nbsp;&nbsp;<B>Chief Executive Office,
etc</B>.&nbsp;&nbsp;&nbsp;&nbsp;The Borrower&#146;s chief executive office and
taxpayer identification number are set forth in the preamble to this Security
Agreement. Subject to Section 4.1 hereof, Borrower maintains all of its records
with respect to its Accounts at such address. Borrower has not at any time
within the past four (4) months maintained its chief executive office or its
records with respect to Accounts at any other location. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
3.4&nbsp;&nbsp;&nbsp;&nbsp;<B>Title to
Collateral</B>.&nbsp;&nbsp;&nbsp;&nbsp;Except for Intellectual Property, which
is separately addressed in Section 3.6 below, all Collateral is lawfully owned
by the Borrower, free and clear of any prior security interest, pledge, sale,
assignment, transfer or other encumbrance other than Permitted Encumbrances; the
Borrower has the unencumbered right to pledge, sell, assign or transfer the
Collateral subject to the Permitted Encumbrances and to subject the Collateral
to the security interest in favor of the Bank herein; except in respect of
Permitted Encumbrances, no financing statement covering all or any portion of
the Collateral is on file in any public office other than in favor of the Bank;
and the security interest herein constitutes a legal and valid, first priority
security interest in the Collateral. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
3.5&nbsp;&nbsp;&nbsp;&nbsp;<B>Representations Regarding
Accounts</B>.&nbsp;&nbsp;&nbsp;&nbsp;Except for Permitted Encumbrances, each
Account (a) is a valid Account representing an undisputed, bona fide right to
payment from the Account Debtor named therein for Goods sold or leased, for
Intellectual Property licensed, or for services rendered, whether or not such
right to payment has been earned by performance; (b) is free and clear of any
agreement wherein the Account Debtor may claim a deduction or discount; and (c)
is free and clear of all set-offs or counterclaims. </FONT></P>


<BR>
<BR>
<p><FONT FACE="Times New Roman, Times, Serif" SIZE=2><HR>
A<SMALL>MENDED AND </SMALL>R<SMALL>ESTATED</SMALL> G<SMALL>ENERAL</SMALL>
S<SMALL>ECURITY</SMALL> A<SMALL>GREEMENT</SMALL>&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
P<small>AGE</small> 4</FONT></P>

<PAGE>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
3.6&nbsp;&nbsp;&nbsp;&nbsp;<B>Representations Regarding Intellectual
Property</B>.&nbsp;&nbsp;&nbsp;&nbsp;Schedule 2 hereto contains a complete and
accurate list as of the date hereof of all patented and registered Intellectual
Property owned by the Borrower and of all pending applications for the
registration of other Intellectual Property owned or filed by the Borrower.
Schedule 2 also contains a complete and accurate list of all licenses and other
rights granted by the Borrower to any third party with respect to the
Intellectual Property and licenses and other rights granted by any third party
to the Borrower. Except for Permitted Encumbrances and except as may be set
forth in Schedule 2 (a) the Borrower owns and possesses all right, title and
interest in and to, or has a valid and enforceable license to use, all of the
Intellectual Property necessary for the operation of the Borrower&#146;s
business as presently conducted or proposed to be conducted; (b) no claim by any
third party contesting the validity, enforceability, use or ownership of any
Intellectual Property has been made, is currently outstanding or, to the
Borrower&#146;s knowledge, is threatened; (c) the Borrower has not received any
notice of, nor is the Borrower aware of any facts which indicate the likelihood
of, any material infringement or misappropriation by, or conflict with, any
third party with respect to any Intellectual Property, nor has the Borrower
received any claim of infringement or misappropriation of, or other conflict
with, any intellectual property rights of any third party; (d) the Borrower has
not materially infringed, misappropriated or otherwise conflicted with any
intellectual property rights of any third party, nor is Borrower aware of any
material infringement, misappropriation or conflict which will occur as a result
of the continued operation of the business of the Borrower as presently
conducted or proposed to be conducted; (e) the Borrower has made or will timely
make all necessary filings and recordations (except user filings) and has paid
or will pay all required fees and taxes to record and maintain its ownership in
its Intellectual Property throughout the world to the extent necessary to
conduct Borrower&#146;s business as currently being conducted or proposed to be
conducted; and (f) no consents are required on any licenses listed on Schedule 2
hereto, except as set forth on Schedule 2, to the grant of the security
interests to, and the exercise of the rights and remedies of, the Bank.
</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
3.7&nbsp;&nbsp;&nbsp;&nbsp;<B>Representations Regarding Contracts and
Leases</B>.&nbsp;&nbsp;&nbsp;&nbsp;All leases of real or personal property and
all contracts to which the Borrower is a party are in full force and effect. To
Borrower&#146;s knowledge, no Person is challenging or disputing the validity or
enforceability of any such leases or contracts, and the Borrower is not in
material default under any such leases or contracts. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
3.8&nbsp;&nbsp;&nbsp;&nbsp;<B>Representations Regarding Equipment and
Inventory</B>.&nbsp;&nbsp;&nbsp;&nbsp;Schedule 3 is a true and correct list of all
locations where Equipment and Inventory of the Borrower is located (except
Inventory in transit) and all locations where Equipment and Inventory of the
Borrower has been located in the four (4) months immediately preceding the date
of this Agreement. Borrower has not purchased any Inventory in a transaction
subject to the bulk transfer laws of any state or otherwise outside the ordinary
course of the Inventory seller&#146;s business. </FONT></P>

<BR>
<BR>
<p><FONT FACE="Times New Roman, Times, Serif" SIZE=2><HR>
A<SMALL>MENDED AND </SMALL>R<SMALL>ESTATED</SMALL> G<SMALL>ENERAL</SMALL>
S<SMALL>ECURITY</SMALL> A<SMALL>GREEMENT</SMALL>&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
P<small>AGE</small> 5</FONT></P>

<PAGE>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
3.9&nbsp;&nbsp;&nbsp;&nbsp;<B>Representations Regarding Investment
Property</B>.&nbsp;&nbsp;&nbsp;&nbsp;The Borrower is the direct and beneficial
owner of each type of Investment Property listed on Schedule 4 hereto as being
owned by it, free and clear of any liens, encumbrances or security interests
except for the security interest granted to the Bank. The Borrower further
represents and warrants that (i) all such Investment Property which are shares
of stock in a corporation or ownership interests in a partnership or limited
liability company have been (to the extent such concepts are relevant with
respect to such Investment Property) duly and validly issued, are fully paid and
non-assessable, (ii) this pledge of such Investment Property will not violate
the proscriptions or require the consent, license, filing, report, permit,
exemption, regulation or approval, of any Governmental Authority or other Person
or violate any provision of law, (iii) such ownership of pledged Investment
Property represent, in the case of U.S. Subsidiaries, One Hundred Percent (100%)
of the issued and outstanding ownership of such U.S. Subsidiaries, and, in the
case of Foreign Subsidiaries, Sixty-Five Percent (65%) of the issued and
outstanding ownership of such Foreign Subsidiaries (iv) such Investment Property
has not been materially altered and all signatures thereon are genuine, (v)
there exists no default by an issuer under any of such Investment Property with
respect thereto, (vi) no insolvency proceedings have been instituted with
respect to the issuer of such Investment Property (vii) the Borrower has
executed no instrument of any kind assigning any of such Investment Property or
the liability of any issuer thereon, or with respect thereto, which remains in
effect, (viii) none of the issuers of such Investment Property have any
obligation, commitment, subscription, option, warrant or other rights
outstanding entitling the holder thereof to purchase or otherwise acquire any
capital stock of such issuer, and (ix) with respect to any certificates
delivered to the Bank representing an ownership interest in a partnership or
limited liability company, either such certificates are Securities as defined in
Article 8 or 8.1 (as applicable) of the Uniform Commercial Code of the
applicable jurisdiction as a result of actions by the issuer or otherwise, or,
if such certificates are not Securities, the Borrower has so informed the Bank
so that the Bank may take steps to perfect its security interest therein as a
General Intangible. </FONT></P>

<!-- MARKER FORMAT-SHEET="ARTICLE -TNR" FSL="Workstation" -->
<A NAME=A005></A>
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
Article 4.&nbsp;&nbsp;&nbsp;&nbsp;A<small>GREEMENTS</small>
C<small>ONCERNING</small> A<small>CCOUNTS</small></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
4.1&nbsp;&nbsp;&nbsp;&nbsp;<B>Location</B>.&nbsp;&nbsp;&nbsp;&nbsp;The Borrower
will give the Bank written notice of each office of the Borrower at which
records of the Borrower relative to Accounts are kept. Except where such notice
is given, all records of the Borrower relative to Accounts are and will be kept
at the chief executive office of the Borrower. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
4.2&nbsp;&nbsp;&nbsp;&nbsp;<B>Returns and
Repossessions</B>.&nbsp;&nbsp;&nbsp;&nbsp;Prior to the occurrence of a Default
or Unmatured Default, the Borrower may grant, in the ordinary course of
business, to any Account Debtor, any rebate, refund or adjustment to which such
Account Debtor may be lawfully entitled and may accept, in connection therewith,
the return of Goods, the sale or lease of which shall have given rise to the
obligation of the Account Debtor, subject, however, to the Bank&#146;s security
interest therein and in any Proceeds arising from the disposition thereof. After
the occurrence of a Default or an Unmatured Default, no discount, credit or
allowance shall be granted by the Borrower to any Account Debtor, and no return
of Goods shall be accepted by the Borrower without the Bank&#146;s prior written
consent. </FONT></P>


<BR>
<BR>
<p><FONT FACE="Times New Roman, Times, Serif" SIZE=2><HR>
A<SMALL>MENDED AND </SMALL>R<SMALL>ESTATED</SMALL> G<SMALL>ENERAL</SMALL>
S<SMALL>ECURITY</SMALL> A<SMALL>GREEMENT</SMALL>&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
P<small>AGE</small> 6</FONT></P>

<PAGE>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
4.3&nbsp;&nbsp;&nbsp;&nbsp;<B>Schedule of Accounts</B>.&nbsp;&nbsp;&nbsp;&nbsp;Upon
request by the Bank, the Borrower will, from time to time, deliver to the Bank a
schedule identifying each Account (&#147;Schedule of Accounts&#148;), together
with such schedules and certificates and reports relative to all or any of the
Collateral and the items or amounts received by the Borrower in full or partial
payment or otherwise, as Proceeds of any of the Collateral. Each Schedule of
Accounts or other schedule, certificate or report shall be executed by its duly
authorized officer and shall be in the form specified by the Bank. Any Schedule
of Accounts identifying any Account shall be accompanied, if the Bank requests,
(a) by a true and correct copy of the invoice evidencing such Account, (b) by
evidence of shipment, delivery or performance, and (c) if such request shall be
made after the occurrence of a Default or an Unmatured Default, by a duly
executed assignment of such Account from the Borrower to the Bank; provided,
however, that the Borrower&#146;s failure to execute and deliver any such
Schedule of Accounts and/or assignment shall not affect or limit the Bank&#146;s
security interest or other rights in and to Accounts, and provided, further,
that a proper assignment of any Account wherein the United States Government is
the Account Debtor may be requested by the Bank at any time whether or not there
shall have occurred a Default or Unmatured Default. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
4.4&nbsp;&nbsp;&nbsp;&nbsp;<B>Verification of
Accounts</B>.&nbsp;&nbsp;&nbsp;&nbsp;After the occurrence of a Default, the
Bank, its officers, agents, attorneys, and accountants, may verify Accounts and
returned and repossessed Goods under reasonable procedures, directly with the
Account Debtor or by other methods, and the Borrower shall furnish to the Bank
upon request additional Schedules of Accounts, together with all notes or other
papers evidencing the same and any guaranty, securities or other information
relating thereto, and shall do, make and deliver all such additional and further
acts, things, deeds, assurances and instruments as the Bank may reasonably
require. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
4.5&nbsp;&nbsp;&nbsp;&nbsp;<B>Collateral
Account</B>.&nbsp;&nbsp;&nbsp;&nbsp;After the occurrence and during the
continuance of any Default or Unmatured Default, the Borrower (a) will, upon the
written request of the Bank, deposit all checks, drafts, cash remittances and
other Proceeds in payment of Accounts in a special collateral account
(&#147;Collateral Account&#148;) maintained with the Bank and thereafter keep
segregated any such checks, drafts, cash remittances or other Proceeds in trust
for the benefit of the Bank until deposited in the Collateral Account with the
Bank; (b) will, upon the written request of the Bank, note the security interest
of the Bank on all records relative to the Collateral including, without
limitation, any invoice which evidences an Account; (c) will, upon the written
request of the Bank, give notice of the Bank&#146;s security interest to Account
Debtor and other obligors to the Borrower; (d) agrees that all checks and other
Instruments received by the Bank after the occurrence and during the continuance
of any Default or Unmatured Default as Proceeds of Accounts will be credited
upon receipt to the Liabilities in such order as the Bank may determine, subject
to final payment; and (e) will, whenever the Borrower obtains possession (by
return, repossession or otherwise) of any Goods, the sale or lease of which
shall have given rise to any of the Collateral, upon the Bank&#146;s written
request, segregate, label and hold such Goods as subject to the security
interest of the Bank hereunder, and will, at its own expense, dispose of such
Goods in such manner as the Bank may from time to time direct. After the
occurrence and during the continuance of any Default or Unmatured Default, the
Bank may notify any Account Debtor to make payment directly to the Bank of any
amounts due or to become due and enforce the collection of any Accounts by suit
or otherwise and surrender, release or exchange all or any part thereof, or
compromise or extend or renew for a period (whether or not longer than the
original period) any indebtedness thereunder or evidenced thereby. Such notice
may require the Account Debtor or other obligor to pay the Account or other
obligation directly to the Bank. Any Proceeds shall be deposited in the form
received except for the endorsement of the Borrower where required, which
endorsement the Bank is authorized to make on the Borrower&#146;s behalf and
shall be held by the Bank as security for all Liabilities, and the Bank may at
any time and from time to time apply all or any portion of the funds on deposit
in the Collateral Account against the Liabilities, the order of application to
be at the discretion of the Bank. </FONT></P>



<BR>
<BR>
<p><FONT FACE="Times New Roman, Times, Serif" SIZE=2><HR>
A<SMALL>MENDED AND </SMALL>R<SMALL>ESTATED</SMALL> G<SMALL>ENERAL</SMALL>
S<SMALL>ECURITY</SMALL> A<SMALL>GREEMENT</SMALL>&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
P<small>AGE</small> 7</FONT></P>

<PAGE>





<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
4.6&nbsp;&nbsp;&nbsp;&nbsp;<B>Accounts Owed by the Federal
Government</B>.&nbsp;&nbsp;&nbsp;&nbsp;If any Account shall arise out of a
contract with the United States of America, or any department, agency,
subdivision, or instrumentality thereof, the Borrower shall promptly notify the
Bank thereof in writing and shall take all other action requested by the Bank to
protect the Bank&#146;s security interest in such Account under the provisions
of the federal Assignment of Claims Act, as amended. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
4.7&nbsp;&nbsp;&nbsp;&nbsp;<B>Assignment of Security
Interests</B>.&nbsp;&nbsp;&nbsp;&nbsp;If, at any time the Borrower shall take
and perfect a security interest in any property of an Account Debtor or any
other Person to secure payment or performance of an Account, the Borrower shall
promptly assign such security interest to the Bank. </FONT></P>

<!-- MARKER FORMAT-SHEET="ARTICLE -TNR" FSL="Workstation" -->
<A NAME=A006></A>
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
Article 5.&nbsp;&nbsp;&nbsp;&nbsp;A<small>GREEMENTS</small>
C<small>ONCERNING</small> C<small>ERTAIN</small>
C<small>OLLATERAL</small></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
5.1&nbsp;&nbsp;&nbsp;&nbsp;<B>Maintenance of Intellectual
Property</B>.&nbsp;&nbsp;&nbsp;&nbsp;Unless otherwise agreed in writing by the
Bank, Borrower shall have the duty to do any and all acts which are necessary to
preserve and maintain all material rights in the Intellectual Property. Borrower
will give proper statutory notice in connection with the use of its Intellectual
Property. Borrower has used, and will continue to use for the duration of this
Agreement, consistent standards of quality in its manufacture or creation of
products sold under its trademarks. The Borrower shall not abandon any of the
Intellectual Property nor permit the expiration of any material Intellectual
Property registrations, except where occasioned by non-use, without the written
consent of the Bank. Borrower shall do any and all acts reasonably required by
the Bank to ensure Borrower&#146;s compliance with this Section 5.1. Any
reasonable expenses incurred in connection with the Intellectual Property shall
be borne by Borrower. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
5.2&nbsp;&nbsp;&nbsp;&nbsp;<B>After-Acquired Intellectual
Property</B>.&nbsp;&nbsp;&nbsp;&nbsp;If the Borrower obtains rights to any new
Intellectual Property, the provisions of this Security Agreement shall
automatically apply thereto. With respect to any new applications for
Intellectual Property, the issuance of any new registration for Intellectual
Property, and renewals or extensions of any of the foregoing, the Borrower shall
give the Bank prompt written notice thereof in writing. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
5.3&nbsp;&nbsp;&nbsp;&nbsp;<B>Opposition
Proceedings</B>.&nbsp;&nbsp;&nbsp;&nbsp;Unless and until there shall have
occurred and be continuing a Default, Borrower shall retain the legal and
equitable title to the Intellectual Property and shall have the right to bring
any opposition proceedings, cancellation proceedings or lawsuit in its own name
to enforce, protect and use the Intellectual Property in the ordinary course of
its business, but shall not be permitted, except with the prior written consent
of the Bank, to sell, assign, transfer or otherwise encumber the Intellectual
Property, other than licensings or other dispositions in the ordinary course of
business or to resolve litigation or disputed claims brought or made by
unrelated parties. </FONT></P>


<BR>
<BR>
<p><FONT FACE="Times New Roman, Times, Serif" SIZE=2><HR>
A<SMALL>MENDED AND </SMALL>R<SMALL>ESTATED</SMALL> G<SMALL>ENERAL</SMALL>
S<SMALL>ECURITY</SMALL> A<SMALL>GREEMENT</SMALL>&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
P<small>AGE</small> 8</FONT></P>

<PAGE>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
5.4&nbsp;&nbsp;&nbsp;&nbsp;<B>Verification of Intellectual
Property</B>.&nbsp;&nbsp;&nbsp;&nbsp;After the occurrence of a Default, the
Bank, its officers, agents, attorneys and accountants, may verify the
Intellectual Property and all licenses and other agreements with respect
thereto, under reasonable procedures, directly with licensees or by other
methods, and the Borrower shall furnish to the Bank upon request schedules of
Intellectual Property and licenses, together with other information relating
thereto, and shall do, make and deliver all such additional and further acts,
things, deeds, assurances and instruments as the Bank may reasonably require
with respect to the Intellectual Property, including, without limitation, the
licenses. The Borrower shall promptly notify the Bank, if it knows that any
material application or registration relating to Intellectual Property may
become abandoned or dedicated to the public, or of any material adverse
determination or development (including any claim) regarding the Intellectual
Property or any material license with respect thereto, or regarding its right to
register, keep and maintain the same, or if it knows that a material item of
Intellectual Property is materially infringed or misappropriated by a third
party, and, in any such event, unless (a) the Bank, or (b) the Board of
Directors of the Borrower in the exercise of its reasonable business judgment
after having considered the advice of reputable intellectual property counsel
shall have determined that litigation is inappropriate or unadvisable, promptly
sue for infringement or misappropriation. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
5.5&nbsp;&nbsp;&nbsp;&nbsp;<B>Supplemental
Documentation</B>.&nbsp;&nbsp;&nbsp;&nbsp;Concurrently with the execution of
this Security Agreement, and from time to time hereafter upon request of the
Bank, the Borrower shall execute and deliver to the Bank supplemental security
agreements relating to any or all registered patents, trademarks, tradenames,
copyrights and applications for any of the foregoing, in a form satisfactory to
the Bank and suitable for recording in the records of the registering
Governmental Authority. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
5.6&nbsp;&nbsp;&nbsp;&nbsp;<B>Contracts and
Leases</B>.&nbsp;&nbsp;&nbsp;&nbsp;The Borrower shall perform, when due, each of
its obligations under all contracts, leases and other agreements (including,
without limitation, all license agreements) to which the Borrower is a party,
and, immediately upon learning of any material default by any party under any
such contract, lease or other agreement, the Borrower shall give written notice
thereof to the Bank, together with a description as to the nature and status
thereof. After the occurrence of any Default or Unmatured Default, the Borrower
shall not amend, modify, supplement or otherwise agree to any change in any
contract, lease or other agreement or waive any provision thereof, without the
prior written consent of the Bank. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
5.7&nbsp;&nbsp;&nbsp;&nbsp;<B>Deposit Accounts</B>.&nbsp;&nbsp;&nbsp;&nbsp;The
Borrower will (i) upon the Bank&#146;s request, cause each bank or other
financial institution in which it maintains (a) a Deposit Account to enter into
a control agreement with the Bank, in form and substance satisfactory to the
Bank in order to give the Bank Control of the Deposit Account or (b) other
deposits (general or special, time or demand, provisional or final) to be
notified of the security interest granted to the Bank hereunder and cause each
such bank or other financial institution to acknowledge such notification in
writing, and (ii) upon the Bank&#146;s request after the occurrence and during
the continuance of a Default, deliver to each such bank or other financial
institution a letter, in form and substance acceptable to the Bank, transferring
ownership of the Deposit Account to the Bank or transferring dominion and
control over each such other deposit to the Bank until such time as no Default
exists. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
5.8&nbsp;&nbsp;&nbsp;&nbsp;<B>Letter-of-Credit
Rights</B>.&nbsp;&nbsp;&nbsp;&nbsp;The Borrower will, upon the Bank&#146;s
request, cause each issuer of a letter of credit to consent to the assignment of
proceeds of the letter of credit in order to give the Bank Control of the
letter-of-credit rights to such letter of credit. </FONT></P>


<BR>
<BR>
<p><FONT FACE="Times New Roman, Times, Serif" SIZE=2><HR>
A<SMALL>MENDED AND </SMALL>R<SMALL>ESTATED</SMALL> G<SMALL>ENERAL</SMALL>
S<SMALL>ECURITY</SMALL> A<SMALL>GREEMENT</SMALL>&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
P<small>AGE</small> 9</FONT></P>

<PAGE>




<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
5.9&nbsp;&nbsp;&nbsp;&nbsp;<B>Uncertificated
Securities</B>.&nbsp;&nbsp;&nbsp;&nbsp;The Borrower will permit the Bank from
time to time to cause the appropriate issuers (and, if held with a securities
intermediary, such securities intermediary) of uncertificated securities which
are Collateral to mark their books and records with the numbers and face amounts
of all such uncertificated securities and all rollovers and replacements
therefor to reflect the Lien of the Bank granted pursuant to this Security
Agreement. The Borrower will take any actions necessary to cause the issuers of
uncertificated securities which are Collateral and which are Securities to cause
the Bank to have and retain Control over such Securities. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
5.10&nbsp;&nbsp;&nbsp;&nbsp;<B>Stock and Other Ownership Interests</B>.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 0-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Changes
in Capital Structure of Issuers</B>.&nbsp;&nbsp;&nbsp;&nbsp;The Borrower will
not (i) cause any issuer of privately held corporate securities or other
ownership interests in a corporation, partnership, joint venture or limited
liability company constituting Collateral to dissolve, liquidate, retire any of
its capital stock or other Instruments or Securities evidencing ownership,
reduce its capital or merge or consolidate with any other entity, or
(ii)&nbsp;vote any of the Instruments or Securities in favor of any of the
foregoing. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 0-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Issuance of Additional Securities</B>.&nbsp;&nbsp;&nbsp;&nbsp;The Borrower
will not cause the issuer of privately held corporate securities or other
ownership interests in a corporation, partnership, joint venture or limited
liability company constituting Collateral to issue any such securities or other
ownership interests, any right to receive the same or any right to receive
earnings, except to the Borrower. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 0-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Registration of Pledged Securities</B>.&nbsp;&nbsp;&nbsp;&nbsp;The Borrower
will permit any registerable Collateral to be registered in the name of the Bank
or its nominee at any time after the occurrence of a Default or at any time if
necessary to perfect the Bank&#146;s security interest in such registerable
Collateral. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 0-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Exercise of Rights in Pledged Securities</B>.&nbsp;&nbsp;&nbsp;&nbsp;The
Borrower will permit the Bank or its nominee at any time after the occurrence of
a Default, without notice, to exercise all voting and corporate rights relating
to the Collateral, including, without limitation, exchange, subscription or any
other rights, privileges, or options pertaining to any corporate securities or
other ownership interests in or of a corporation, partnership, joint venture or
limited liability company constituting Collateral and the Stock Rights as if it
were the absolute owner thereof. </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="ARTICLE -TNR" FSL="Workstation" -->
<A NAME=A008></A>
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
Article 6.&nbsp;&nbsp;&nbsp;&nbsp;A<small>GREEMENTS</small>
C<small>ONCERNING</small> I<small>NVENTORY</small></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
6.1&nbsp;&nbsp;&nbsp;&nbsp;<B>Locations</B>.&nbsp;&nbsp;&nbsp;&nbsp;Borrower
will give the Bank written notice of each location at which Inventory is or will
be kept at all times. Except where such notice is given and except for Inventory
sold in the ordinary course of business, all Inventory is and shall be kept at
the locations set forth on Schedule 3 hereto. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
6.2&nbsp;&nbsp;&nbsp;&nbsp;<B>Sales of Inventory</B>.&nbsp;&nbsp;&nbsp;&nbsp;The
Borrower may, in the ordinary course of business, at its own expense, sell,
lease or furnish under contracts of sale or service, any of the Inventory
normally held by the Borrower for such purpose (a sale in the ordinary course of
business does not include a transfer in total or partial satisfaction of a
debt), and use and consume, in the ordinary course of business, any raw
materials, work-in-process or materials normally held by it for such purpose.
</FONT></P>



<BR>
<BR>
<p><FONT FACE="Times New Roman, Times, Serif" SIZE=2><HR>
A<SMALL>MENDED AND </SMALL>R<SMALL>ESTATED</SMALL> G<SMALL>ENERAL</SMALL>
S<SMALL>ECURITY</SMALL> A<SMALL>GREEMENT</SMALL>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
P<small>AGE</small> 10</FONT></P>

<PAGE>




<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
6.3&nbsp;&nbsp;&nbsp;&nbsp;<B>Condition of Inventory; Books and
Records</B>.&nbsp;&nbsp;&nbsp;&nbsp;Borrower shall keep all Inventory in good
order and condition and shall maintain full, accurate and complete books and
records with respect to Inventory at all times. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
6.4&nbsp;&nbsp;&nbsp;&nbsp;<B>Warehousemen and
Landlords</B>.&nbsp;&nbsp;&nbsp;&nbsp;Borrower shall not store any material
portion of its Inventory with any bailee, warehouseman, or similar party without
the Bank&#146;s prior written consent. If Inventory is so stored, Borrower will,
concurrently with storing such Inventory, cause such bailee, warehouseman, or
similar party to issue and deliver to the Bank, in a form acceptable to the
Bank, warehouse receipts in the Bank&#146;s name evidencing the storage of the
Inventory. The Borrower shall provide the Bank with copies of all agreements
between the Borrower and any bailee, warehouseman, or similar party and shall
deliver to the Bank a landlord&#146;s or warehouseman&#146;s lien waiver in a
form acceptable to the Bank, prior to entering into any material lease for
warehouse storage or business facilities. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
6.5&nbsp;&nbsp;&nbsp;&nbsp;<B>Consigned Inventory</B>.&nbsp;&nbsp;&nbsp;&nbsp;If
at any time any of the Inventory is placed by the Borrower on consignment with
any consignee, Borrower shall, prior to delivery of such consigned Inventory,
(a) provide Bank with all consignment agreements and other instruments and
documentation to be used in connection with such consignment (all of which shall
be in a form acceptable to the Bank); (b) prepare, execute and file appropriate
financing statements with respect to any consigned Inventory showing the
consignee as debtor, the Borrower as secured party, and the Bank as assignee of
the secured party; (c) prepare, execute and file appropriate financing
statements with respect to any consigned Inventory showing the Borrower, as
debtor, and the Bank, as secured party; (d) conduct a search of all UCC filings
made against the consignee in all jurisdictions in which Inventory to be
consigned is to be located while on consignment, and furnish copies of such
results to the Bank; and (e) notify in writing all creditors of the consignee
that are or may be holders of security interests in the Inventory to be
consigned that the Borrower expects to deliver certain Inventory to the
consignee. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
6.6&nbsp;&nbsp;&nbsp;&nbsp;<B>Compliance with
Law</B>.&nbsp;&nbsp;&nbsp;&nbsp;Borrower shall substantially comply in all
material respects with all federal, state and local laws, regulations, rulings
and orders applicable to the Borrower for its assets or business. Without
limiting the generality of the foregoing, Borrower shall comply with all
requirements of the federal Fair Labor Standards Act, as amended, in the conduct
of its business and the production of Inventory. Borrower shall notify the Bank
immediately of any violation by Borrower of the Fair Labor Standards Act, and
the absence of such notice shall constitute Borrower&#146;s continuing
representation that all Inventory then existing has been produced in compliance
with the Fair Labor Standards Act. </FONT></P>

<!-- MARKER FORMAT-SHEET="ARTICLE -TNR" FSL="Workstation" -->
<A NAME=A009></A>
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
Article 7.&nbsp;&nbsp;&nbsp;&nbsp;A<small>GREEMENTS</small>
C<small>ONCERNING</small> E<small>QUIPMENT</small></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
7.1&nbsp;&nbsp;&nbsp;&nbsp;<B>Locations</B>.&nbsp;&nbsp;&nbsp;&nbsp;Borrower
will give the Bank written notice of each location at which Equipment is or will
be kept at all times. Except where such notice is given, the Equipment will be
kept at locations set forth on Schedule 3 hereto. Schedule 3 sets forth all
locations at which Equipment of the Borrower is located and the name and owner
of record of the real estate at each location if the Borrower is not the owner
of record. </FONT></P>


<BR>
<BR>
<p><FONT FACE="Times New Roman, Times, Serif" SIZE=2><HR>
A<SMALL>MENDED AND </SMALL>R<SMALL>ESTATED</SMALL> G<SMALL>ENERAL</SMALL>
S<SMALL>ECURITY</SMALL> A<SMALL>GREEMENT</SMALL>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
P<small>AGE</small> 11</FONT></P>

<PAGE>





<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
7.2&nbsp;&nbsp;&nbsp;&nbsp;<B>Condition</B>.&nbsp;&nbsp;&nbsp;&nbsp;The Borrower
will keep the Equipment in good order and repair, ordinary wear and tear
excepted, and will not waste or destroy the Equipment or any portion thereof,
except in the case of obsolete Equipment which is no longer used or useful in
Borrower&#146;s business. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
7.3&nbsp;&nbsp;&nbsp;&nbsp;<B>Titled Equipment</B>.&nbsp;&nbsp;&nbsp;&nbsp;If
Borrower now or hereafter has any vehicles, aircraft, watercraft, or other
Equipment for which a certificate of title has been issued by a Governmental
Authority, the Borrower shall immediately deliver to the Bank, properly
endorsed, each certificate of title or application for title or other evidence
of ownership for each such item of Equipment, and the Borrower shall take all
actions necessary to have the Bank&#146;s security interest properly recorded on
each such certificate of title and shall take all other steps necessary to
perfect the Bank&#146;s security interest in such Equipment. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
7.4&nbsp;&nbsp;&nbsp;&nbsp;<B>Compliance with
Laws</B>.&nbsp;&nbsp;&nbsp;&nbsp;The Borrower will not use the Equipment in
material violation of any statute, rule, regulation or ordinance or any policy
of insurance thereon. Borrower will neither use the Equipment nor permit the
Equipment to be used, for any unlawful purpose or contrary to any statute, law,
ordinance or regulation relating to the registration, use, operation or control
of the Equipment. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
7.5&nbsp;&nbsp;&nbsp;&nbsp;<B>Transfers of
Equipment</B>.&nbsp;&nbsp;&nbsp;&nbsp;Borrower may from time to time substitute
Equipment, provided that (a) the substituted Equipment is not subject to any
lien or other encumbrance and has a fair market value at least equal to the fair
market of the Equipment for which it is substituted; (b) the marketability and
operating integrity of Borrower&#146;s Equipment after such substitution is not
impaired; (c) the Equipment substituted for is no longer used or useful in the
operation of Borrower&#146;s business and is sold in arm&#146;s length
transaction in exchange for money or money&#146;s worth at least equal to the
fair market value of such Equipment substituted for; and (d) no Default or
Unmatured Default has occurred and is continuing. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
7.6&nbsp;&nbsp;&nbsp;&nbsp;<B>Fixtures</B>.&nbsp;&nbsp;&nbsp;&nbsp;The Borrower
shall not permit any item of Equipment to become a Fixture to real estate or an
accession to any other property not subject to the Bank&#146;s security interest
herein without the prior written consent of the Bank. </FONT></P>

<!-- MARKER FORMAT-SHEET="ARTICLE -TNR" FSL="Workstation" -->
<A NAME=A010></A>
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
Article 8.&nbsp;&nbsp;&nbsp;&nbsp;G<small>ENERAL</small>
P<small>ROVISIONS</small> C<small>ONCERNING</small>
C<small>OLLATERAL</small></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
8.1&nbsp;&nbsp;&nbsp;&nbsp;<B>Title to After-Acquired
Collateral</B>.&nbsp;&nbsp;&nbsp;&nbsp;All Collateral acquired after the date
hereof will be acquired by the Borrower free of any lien, security interest or
encumbrance, except Permitted Encumbrances. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
8.2&nbsp;&nbsp;&nbsp;&nbsp;<B>Further Assurances</B>.&nbsp;&nbsp;&nbsp;&nbsp;The
Borrower agrees to do such reasonable acts and things and deliver or cause to be
delivered such other documents as the Bank may deem necessary to establish and
maintain a valid security interest in the Collateral (free of all other liens
and claims except Permitted Encumbrances) to secure the payment and performance
of the Liabilities and to defend title to the Collateral against any Person
claiming any interest therein adverse to the Bank. The Borrower authorizes the
Bank, at the expense of the Borrower, to execute and file a financing statement
or statements on its behalf in those public offices deemed advisable or
necessary by the Bank to protect the security interests of the Bank herein
granted. If permitted by law, the Borrower agrees that a carbon, photographic or
other reproduction of this Security Agreement or of a financing statement may be
filed as a financing statement. </FONT></P>


<BR>
<BR>
<p><FONT FACE="Times New Roman, Times, Serif" SIZE=2><HR>
A<SMALL>MENDED AND </SMALL>R<SMALL>ESTATED</SMALL> G<SMALL>ENERAL</SMALL>
S<SMALL>ECURITY</SMALL> A<SMALL>GREEMENT</SMALL>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
P<small>AGE</small> 12</FONT></P>

<PAGE>





<P align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Section
8.3&nbsp;&nbsp;&nbsp;&nbsp;<B>Insurance</B>.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 0-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><div align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
The Borrower shall have and maintain at all times, with respect to Inventory and
Equipment, insurance written by companies acceptable to the Bank covering risks
customarily insured against by companies engaged in business similar to that of
the Borrower in reasonable amounts, containing such terms, in such form, and for
such periods customarily maintained by companies engaged in business similar to
that of the Borrower. Such insurance shall be payable to the Borrower and the
Bank as their interests may appear. </FONT></div></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 0-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><div align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
In addition to the insurance requirements set forth in Section 8.3(a), the
Borrower will carry any other insurance and amounts for periods as may be
reasonably required by the Bank, and will deliver to the Bank, not less than
five (5) days prior to the expiration of any such policy of insurance, renewals
or new policies in like amounts covering the same risks. </FONT></div></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para (List) Hang Lv 0-TNR" FSL="Workstation" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=95%><div align=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
All such insurance policies shall carry standard, non-contributory lender&#146;s
loss payable clauses and breach of warranty endorsements, in favor of the Bank.
The insurance certificates evidencing the Borrower&#146;s compliance with the
above shall be deposited with the Bank, and in the event the Borrower fails to
file and maintain such insurance, the Bank may, at its option, purchase such
insurance and the cost of such insurance shall become a Liability secured by
these presents and all sums expended shall bear interest at the highest Default
rate of interest set forth in the Credit Agreement until paid. If requested by
the Bank, the Borrower shall deliver certified copies of such policies to the
Bank. The Borrower shall pay all insurance premiums promptly when due and shall
provide substitute policies of insurance should the Bank at any time reject, for
reasonable cause, any such policies of insurance furnished by the Borrower. The
Borrower hereby assigns to the Bank the proceeds of all such insurance,
including, without limitation, any premium refunds, to the extent of the
Liabilities, shall direct the insurer to make payment of any losses or refunds
directly to the Bank, and appoints the Bank its attorney-in-fact to endorse any
draft, check or other form of payment made by such insurer. So long as there
then exists no Default, the Bank shall remit any insurance proceeds less than
Two Hundred Thousand Dollars ($200,000) to the Borrower. Any insurance proceeds
not remitted to the Borrower shall be applied to the outstanding Liabilities, in
the order of preference determined by the Bank. </FONT></div></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
8.4&nbsp;&nbsp;&nbsp;&nbsp;<B>Collection of
Collateral</B>.&nbsp;&nbsp;&nbsp;&nbsp;The Borrower will, at its own expense,
endeavor to collect, as and when due, all amounts due with respect to any
Collateral including the taking of such action with respect to such collection
as the Bank may reasonably request or, in the absence of such request, as the
Borrower may deem advisable. </FONT></P>


<BR>
<BR>
<p><FONT FACE="Times New Roman, Times, Serif" SIZE=2><HR>
A<SMALL>MENDED AND </SMALL>R<SMALL>ESTATED</SMALL> G<SMALL>ENERAL</SMALL>
S<SMALL>ECURITY</SMALL> A<SMALL>GREEMENT</SMALL>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
P<small>AGE</small> 13</FONT></P>

<PAGE>





<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
8.5&nbsp;&nbsp;&nbsp;&nbsp;<B>Bank May Defend
Title</B>.&nbsp;&nbsp;&nbsp;&nbsp;In the event the Borrower fails to pay any
taxes, assessments, premiums, or fees, or fails to discharge any liens or claims
against the Collateral required to be paid or discharged by the Borrower, or
fails to purchase, maintain and file with the Bank any insurance required by
this Security Agreement, or if any such insurance is inappropriate to the
situation, in the Bank&#146;s reasonable discretion, the Bank may, without
demand or notice, pay any such taxes, assessments, premiums or fees, or pay,
acquire, satisfy or discharge any liens or claims asserted against the
Collateral (without any obligation to determine the validity thereof), or
purchase any such insurance. All sums so expended by the Bank shall become a
Liability secured by these presents and shall bear interest at the highest
Default rate of interest set forth in the Credit Agreement until paid.
</FONT></P>


<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
8.6&nbsp;&nbsp;&nbsp;&nbsp;<B>Negotiable
Collateral</B>.&nbsp;&nbsp;&nbsp;&nbsp;If any Collateral, including Proceeds,
consists of a letter of credit, advice of credit, Instrument, certificates of
deposit, negotiable Documents, chattel paper or similar property, the Borrower
shall, immediately upon receipt thereof, endorse and assign such Collateral, and
deliver actual physical possession thereof, to the Bank, and prior to such
delivery, shall hold such property in trust for the Bank. Schedule 5 hereto is a
true and correct list of all such negotiable Collateral owned by the Borrower,
other than money. The Borrower will give the Bank written notice each time it
acquires such additional negotiable Collateral, other than money. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
8.7&nbsp;&nbsp;&nbsp;&nbsp;<B>Contracts</B>.&nbsp;&nbsp;&nbsp;&nbsp;The Borrower
shall remain liable to perform its obligations under any contracts included in
the Collateral to the extent as though this Security Agreement had not been
entered into, and the Bank shall not have any obligation under any such
contracts by reason of this Agreement. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
8.8&nbsp;&nbsp;&nbsp;&nbsp;<B>Accounting
System</B>.&nbsp;&nbsp;&nbsp;&nbsp;Borrower shall maintain a standard and modern
system of accounting in accordance with GAAP which contains information
pertaining to the Collateral that may from time to time be requested by the
Bank. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
8.9&nbsp;&nbsp;&nbsp;&nbsp;<B>Inspection of Collateral and
Records</B>.&nbsp;&nbsp;&nbsp;&nbsp;During Borrower&#146;s usual business hours,
the Bank may inspect and examine the Collateral and check and test the same as
to quality, quantity, value, and condition. The Bank shall also have the right
at any time or times hereafter, during Borrower&#146;s usual business hours or
during the usual business hours of any third party having control over the
records of the Borrower, to inspect Borrower&#146;s books and records in order
to verify the amount or condition of, or any other matter relating to, the
Collateral and Borrower&#146;s financial condition and to copy and make extracts
from such books and records. Borrower waives the right to assert a confidential
relationship, if any, it may have with any accounting firm in connection with
any information requested by the Bank pursuant to this Security Agreement and
agrees that the Bank may directly contact any such accounting firm in order to
obtain such information. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
8.10&nbsp;&nbsp;&nbsp;&nbsp;<B>Transfer of
Collateral</B>.&nbsp;&nbsp;&nbsp;&nbsp;Borrower shall not sell, lease, license,
transfer or otherwise dispose of any interest in any Collateral except (a) sales
of Inventory in the ordinary course of business pursuant to Section 6.2, (b)
licensings and other dispositions of Intellectual Property in the ordinary
course of business pursuant to Section 5.3, (c) dispositions of Equipment in
accordance with Section 7.5, and (d) the writeoff of uncollectible Accounts in
the ordinary course of business. </FONT></P>




<BR>
<BR>
<p><FONT FACE="Times New Roman, Times, Serif" SIZE=2><HR>
A<SMALL>MENDED AND </SMALL>R<SMALL>ESTATED</SMALL> G<SMALL>ENERAL</SMALL>
S<SMALL>ECURITY</SMALL> A<SMALL>GREEMENT</SMALL>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
P<small>AGE</small> 14</FONT></P>

<PAGE>


<!-- MARKER FORMAT-SHEET="ARTICLE -TNR" FSL="Workstation" -->
<A NAME=A012></A>
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
Article 9.&nbsp;&nbsp;&nbsp;&nbsp;R<small>EMEDY</small></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
9.1&nbsp;&nbsp;&nbsp;&nbsp;<B>Remedies Generally; Power of
Sale</B>.&nbsp;&nbsp;&nbsp;&nbsp;Upon the occurrence of any Default and at any
time thereafter, the Bank shall have all rights and remedies available at law or
in equity including, without limitation, the rights and remedies of a secured
party under the Indiana Uniform Commercial Code, as in effect from time to time
(regardless of whether the Code has been enacted in the jurisdiction where
rights or remedies are asserted), including, without limitation, the right to
take possession of the Collateral, and for that purpose the Bank may, so far as
the Borrower can give authority therefor, enter upon any premises on which the
Collateral may be situated and remove the same therefrom. The Bank shall give to
the Borrower at least ten (10) days&#146; prior written notice of the time and
place of any public sale of Collateral or of the time after which any private
sale or any other intended disposition is to be made. The Bank may in its
discretion transfer any securities or other property constituting Collateral
into its own name or that of its nominee and receive the income thereon and hold
the same as security for Liabilities or apply it on principal or interest due on
Liabilities. In the event that the Bank takes possession of any Intellectual
Property, the goodwill associated with any trademarks, tradenames, trade dress,
and service marks of the Borrower shall be transferred to the Bank. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
9.2&nbsp;&nbsp;&nbsp;&nbsp;<B>Deposits</B>.&nbsp;&nbsp;&nbsp;&nbsp;Any and all
Deposit Accounts, deposits or other sums at any time credited by or due from the
Bank to the Borrower shall at all times constitute security for any and all
Liabilities, and the Bank may apply or set off such deposits or other sums
against Liabilities at any time in Default whether or not the Liabilities are
then due or other Collateral is considered by the Bank to be adequate.
</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
9.3&nbsp;&nbsp;&nbsp;&nbsp;<B>Waiver and
Amendment</B>.&nbsp;&nbsp;&nbsp;&nbsp;Except as otherwise expressly set forth
herein, to the extent permitted by law, the Borrower waives demand, notice,
protest, notice of acceptance of this Security Agreement, notice of loans made,
credit extended, Collateral received or delivered or other action taken in
reliance hereon and all other demands and notices of any description. With
respect to both Liabilities and Collateral, the Borrower assents to any
extension or postponement of the time of payment or any other indulgence, to any
substitution, exchange, or release of Collateral, to the addition or release of
any party or person primarily or secondarily liable, to the acceptance of
partial payments thereon and the settlement, compromise or adjustment of any
thereof, all in such manner and at such time or times as the Bank may deem
advisable. Except as otherwise provided by law, the Bank shall have no duty as
to the collection or protection of the Collateral, or any income therefrom, nor
as to the preservation of rights against prior parties nor as to the
preservation of any rights pertaining thereto beyond the safe custody thereof.
The Bank may exercise its rights with respect to Collateral without resorting or
regard to other Collateral or sources of reimbursement for any Liability. The
Bank shall not be deemed to have waived any of these rights upon or under
Liabilities or Collateral unless such waiver be in writing and signed by the
Bank. No delay or omission on the part of the Bank in exercising any right shall
operate as a waiver of such right or any other right. A waiver on any one
occasion shall not be construed as a bar to the exercise of any right on any
future occasion. All rights and remedies of the Bank as to the Liabilities or
Collateral whether evidenced hereby or by any other instrument or papers shall
be cumulative and may be exercised singly, successively or together. The Bank
may, from time to time, without notice to the Borrower (a) retain or obtain a
security interest in any property of any other Person, in addition to the
Collateral, to secure any of the Liabilities; (b) retain or obtain the primary
or secondary liability of any party or parties, in addition to the Borrower with
respect to any of the Liabilities; (c) extend or renew for any period (whether
or not longer than the original period) or release or compromise any liability
of any party or parties primarily or secondarily liable to the Bank under the
Credit Agreement; (d) release its security interest in any of the property
securing any of the Liabilities and permit any substitution or exchange for any
such property; and (e) resort to the Collateral for the payment of any of the
Liabilities whether or not it shall have resorted to any other property or shall
have proceeded against any party primarily or secondarily liable for any of the
Liabilities. The Bank shall not, under any circumstances, or in any event
whatsoever, have any liability for any error or omission or delay of any kind
occurring in the liquidation of any Collateral, including the settlement or
collection of any Account or for any damage resulting therefrom, except
liability resulting from any act or omission by the Bank which constitutes
wilful misconduct. This Security Agreement may be amended only by a writing duly
signed by the Bank and the Borrower. </FONT></P>



<BR>
<BR>
<p><FONT FACE="Times New Roman, Times, Serif" SIZE=2><HR>
A<SMALL>MENDED AND </SMALL>R<SMALL>ESTATED</SMALL> G<SMALL>ENERAL</SMALL>
S<SMALL>ECURITY</SMALL> A<SMALL>GREEMENT</SMALL>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
P<small>AGE</small> 15</FONT></P>

<PAGE>


<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
9.4&nbsp;&nbsp;&nbsp;&nbsp;<B>Expenses; Proceeds of
Collateral</B>.&nbsp;&nbsp;&nbsp;&nbsp;The Borrower shall pay to the Bank on
demand any and all reasonable out-of-pocket expenses, including reasonable
attorneys&#146; fees, incurred or paid by the Bank in protecting the Collateral
or the existence, perfection or priority of the Bank&#146;s security interest
therein. After deducting all of such expenses, the residue of any Proceeds of
collection or sale of the Collateral shall be applied to the payment of
principal or interest on Liabilities in such order of preference as the Bank may
determine, and any excess shall be returned to the Borrower. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
9.5&nbsp;&nbsp;&nbsp;&nbsp;<B>Power of Attorney</B>.&nbsp;&nbsp;&nbsp;&nbsp;The
Borrower hereby irrevocably appoints the Bank and the Bank&#146;s designees from
time to time its true and lawful attorneys-in-fact, with full power of
substitution in the premises upon the occurrence of a Default (a) to demand,
collect, receipt for, settle, compromise, adjust, sue for, foreclose or realize
upon the Collateral in such manner as the Bank may determine, whether or not the
Collateral is then due; (b) to receive, open, and dispose of mail addressed to
the Borrower; (c) to endorse notes, checks, drafts, money orders, Documents or
other evidences of payment, shipment or storage or any form of Collateral on
behalf of and in the name of the Borrower; (d) to sign and send on behalf of the
Borrower any invoice or bill of lading relating to any Account, on drafts
against customers, on schedules and assignments of Accounts, on notices of
assignment, financing statements and other public records, on verifications of
Accounts and on notices to customers; (e) to sign the Borrower&#146;s name to
the proofs of claim against any Account Debtor on behalf of the Borrower; (f) to
notify the post office authorities to change the address for delivery of the
Borrower&#146;s mail to an address designated by the Bank; (g) to endorse
Borrower&#146;s name on all applications, documents, papers, certificates and
instruments necessary or expedient for the Bank to use the Intellectual
Property, or necessary or expedient to grant or issue any exclusive or
nonexclusive license under the Intellectual Property to anyone else, or
necessary or expedient for the Bank to assign, pledge, convey or otherwise
transfer title in, or dispose of, the Intellectual Property to anyone else, for
the purpose of recording, registering, filing or accomplishing any other formula
with respect to the Intellectual Property; and (h) to do all things necessary to
carry out this Security Agreement. The Borrower hereby ratifies and approves all
acts of such attorneys. Neither the Bank nor any attorney will be liable for any
acts or omissions nor for any error of judgment or mistake of fact or law,
absent gross negligence, bad faith or wilful misconduct. This power, being
coupled with an interest, is irrevocable until the Liabilities have been fully
satisfied. Notwithstanding anything herein to the contrary, no attorney acting
pursuant to this Section 9.5 shall have any authority to confess judgment on
behalf of the Borrower. </FONT></P>



<BR>
<BR>
<p><FONT FACE="Times New Roman, Times, Serif" SIZE=2><HR>
A<SMALL>MENDED AND </SMALL>R<SMALL>ESTATED</SMALL> G<SMALL>ENERAL</SMALL>
S<SMALL>ECURITY</SMALL> A<SMALL>GREEMENT</SMALL>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
P<small>AGE</small> 16</FONT></P>

<PAGE>



<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
9.6&nbsp;&nbsp;&nbsp;&nbsp;<B>License</B>.&nbsp;&nbsp;&nbsp;&nbsp;Borrower
hereby grants to the Bank a license to use, without charge, Borrower&#146;s
Intellectual Property and other Collateral in completing production of,
advertising for sale, or selling any Collateral after any Default, and all of
the Borrower&#146;s rights under all licenses and franchise agreements shall, in
such event, inure to the Bank&#146;s benefit. In addition, the Borrower shall,
upon request by the Bank, make available such personnel in Borrower&#146;s
employ on the date of any Default as the Bank may reasonably designate to permit
the Bank to continue, directly or indirectly, to produce, advertise and sell the
Collateral sold by the Borrower under any Intellectual Property or license. The
license herein shall include the right of the Bank to use, assign, license or
sublicense any of the Borrower&#146;s Intellectual Property, including in such
license reasonable access as to all media in which any of the licensed items may
be recorded or stored; provided that the Bank shall comply with all pre-existing
quality control standards and trademark use requirements of the Borrower. No
agreements hereafter entered into by the Borrower shall prohibit, restrict or
impair the rights of the Bank granted hereunder. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
9.7&nbsp;&nbsp;&nbsp;&nbsp;<B>Reinstatement</B>.&nbsp;&nbsp;&nbsp;&nbsp;If, at
any time after payment in full by the Borrower of all Liabilities and
termination of the Bank&#146;s security interest, any payments on the
Liabilities previously made by the Borrower or any other Person must be
disgorged by the Bank for any reason whatsoever, including, without limitation,
the insolvency, bankruptcy or reorganization of the Borrower or such Person,
this Security Agreement and the Bank&#146;s security interests herein shall be
reinstated as to all disgorged payments as though such payments had not been
made, and the Borrower shall sign and deliver to the Bank all documents, and
shall do such other acts and things, as may be necessary to re-perfect the
Bank&#146;s security interest. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
9.8&nbsp;&nbsp;&nbsp;&nbsp;<B>No Marshaling</B>.&nbsp;&nbsp;&nbsp;&nbsp;The
Borrower, on its own behalf and on behalf of its successors and assigns, hereby
expressly waives all rights, if any, to require a marshaling of assets by the
Bank or to require the Bank&#146;s first resort to some or any portion of the
Collateral before foreclosing upon, selling or otherwise realizing on any other
portion thereof. </FONT></P>

<!-- MARKER FORMAT-SHEET="ARTICLE -TNR" FSL="Workstation" -->
<A NAME=A013></A>
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=3>
Article 10.&nbsp;&nbsp;&nbsp;&nbsp;M<small>ISCELLANEOUS</small>
P<small>ROVISIONS</small></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
10.1&nbsp;&nbsp;&nbsp;&nbsp;<B>Priority</B>.&nbsp;&nbsp;&nbsp;&nbsp;Unless
otherwise expressly provided, the security interest hereby created shall be pro
rata on par with any prior security interests in the Collateral now or hereafter
existing in favor of the Bank. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
10.2&nbsp;&nbsp;&nbsp;&nbsp;<B>Governing Law</B>.&nbsp;&nbsp;&nbsp;&nbsp;This
Security Agreement and all rights and obligations hereunder, including matters
of construction, validity and performance, shall be governed by the Uniform
Commercial Code and other applicable laws of the State of Indiana, without
regard to conflict of law principles. </FONT></P>



<BR>
<BR>
<p><FONT FACE="Times New Roman, Times, Serif" SIZE=2><HR>
A<SMALL>MENDED AND </SMALL>R<SMALL>ESTATED</SMALL> G<SMALL>ENERAL</SMALL>
S<SMALL>ECURITY</SMALL> A<SMALL>GREEMENT</SMALL>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
P<small>AGE</small> 17</FONT></P>

<PAGE>


<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
10.3&nbsp;&nbsp;&nbsp;&nbsp;<B>Severability</B>.&nbsp;&nbsp;&nbsp;&nbsp;Whenever
possible each provision of this Security Agreement shall be interpreted in such
a manner as to be effective and valid under applicable law, but if any provision
of this Security Agreement shall be prohibited by or invalid under applicable
law, such provision shall be ineffective only to the extent of such prohibition
without invalidating the remainder of such provision or the remaining provisions
of this Security Agreement. The Borrower recognizes that the Bank has relied on
this Security Agreement in extending credit to the Borrower and agrees that such
reliance by the Bank shall be sufficient consideration for this Security
Agreement. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
10.4&nbsp;&nbsp;&nbsp;&nbsp;<B>Binding on
Successors</B>.&nbsp;&nbsp;&nbsp;&nbsp;The rights and privileges of the Bank
shall inure to the benefit of its respective successors and assigns. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
10.5&nbsp;&nbsp;&nbsp;&nbsp;<B>Chattel Mortgage</B>.&nbsp;&nbsp;&nbsp;&nbsp;This
Security Agreement shall also constitute a chattel mortgage and an assignment of
rents.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
10.6&nbsp;&nbsp;&nbsp;&nbsp;<B>Amendment and
Restatement</B>.&nbsp;&nbsp;&nbsp;&nbsp;This Security Agreement amends and
restates that certain Security Agreement from Borrower to Bank dated October 29,
2002. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
10.7&nbsp;&nbsp;&nbsp;&nbsp;<B>Waiver Of Jury
Trial</B>.&nbsp;&nbsp;&nbsp;&nbsp;Bank And Borrower, After Consulting Or Having
Had The Opportunity To Consult With Counsel, Knowingly, Voluntarily,
Intentionally, Irrevocably And Unconditionally Waive Any Right Either Of Them
May Have To A Trial By Jury In Any Litigation Based Upon Or Arising Out Of This
Agreement Or Any Other Loan Document Or Any Of The Transactions Contemplated By
This Agreement Or Any Course Of Conduct, Dealing, Statements (Whether Oral Or
Written), Or Actions Of Either Of Them. Neither Bank Nor Borrower Shall Seek To
Consolidate, By Counterclaim Or Otherwise, Any Action In Which A Jury Trial Has
Been Waived With Any Other Action In Which A Jury Trial Cannot Be Or Has Not
Been Waived. These Provisions Shall Not Be Deemed To Have Been Modified In Any
Respect Or Relinquished By Either Bank Or Borrower Except By A Written
Instrument Executed By Both Of Them. </FONT></P>

<P ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
[T<small>HIS</small> S<small>PACE</small> L<small>EFT</small>
I<small>NTENTIONALLY</small> B<small>LANK</small>]</FONT></P>


<BR>
<BR>
<p><FONT FACE="Times New Roman, Times, Serif" SIZE=2><HR>
A<SMALL>MENDED AND </SMALL>R<SMALL>ESTATED</SMALL> G<SMALL>ENERAL</SMALL>
S<SMALL>ECURITY</SMALL> A<SMALL>GREEMENT</SMALL>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
P<small>AGE</small> 18</FONT></P>

<PAGE>





<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I<small>N</small>
W<small>ITNESS</small> W<small>HEREOF</small>, the Borrower and the Bank have
caused this Security Agreement to be executed by their respective officers duly
authorized as of the date first above written.
</FONT></P>

<!-- MARKER FORMAT-SHEET="Signature Block" FSL="Workstation" -->
<TABLE WIDTH=100% CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=60%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;</FONT></TD>
<TD WIDTH=40%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
B<small>IOANALYTICAL</small> S<small>YSTEMS</small>, I<small>NC.</small>,<BR>
an Indiana corporation<BR>
<BR>
<BR>
By:&nbsp;&nbsp;/s/&nbsp;&nbsp;Michael R. Cox<hr>
<BR>
Printed:&nbsp;&nbsp;Michael R. Cox<hr>
<BR>
Title:&nbsp;&nbsp;VP&#151;Finance<hr>
</font></TD>
</TR>
</TABLE>
<BR>

<BR>
<BR>




<!-- MARKER FORMAT-SHEET="Signature Block" FSL="Workstation" -->
<TABLE WIDTH=30% CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
STATE OF INDIANA</FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
)</font></TD>
</TR>

<TR VALIGN=TOP>
<TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;</FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
)&nbsp;&nbsp;SS:</font></TD>
</TR>

<TR VALIGN=TOP>
<TD WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
COUNTY OF MARION</FONT></TD>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
)</font></TD>
</TR>
</TABLE>
<BR>


<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Before me, a Notary Public in
and for said County and State, personally appeared Michael R. Cox, known to
me to be the VP&#151;Finance of B<small>IOANALYTICAL</small> S<small>YSTEMS</small>,
I<small>NC.</small>, and acknowledged the execution of the foregoing for and on
behalf of said corporation. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Default" -->
<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Witness my hand and Notarial
Seal, this 3rd day of January, 2005. </FONT></P>

<!-- MARKER FORMAT-SHEET="Signature Block" FSL="Workstation" -->
<TABLE WIDTH=100% CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=65%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<BR>
<BR>
<BR>
<BR>
<BR>
<BR>
My Commission Expires:<BR>
<BR>
<BR>
Juy 17, 2008<hr width=250 align=left>
<BR>
<BR>
A<small>CCEPTED</small>:
</FONT></TD>

<TD WIDTH=35%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>

/s/&nbsp;&nbsp;Jeri A. Ungersha<HR>
Notary Public - Signature<BR>
<BR>
Jeri A. Ungersha<HR>
Notary Public - Printed<BR>
<BR>
My County of Residence:<BR>
<BR>
<BR>
Tippecanoe<HR>

</FONT></TD>
</TR>
</TABLE>


<!-- MARKER FORMAT-SHEET="Signature Block" FSL="Workstation" -->
<TABLE WIDTH=100% CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=60%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;</FONT></TD>
<TD WIDTH=40%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
N<small>ATIONAL</small> C<small>ITY</small> B<small>ANK OF
</small>I<small>NDIANA</small>
<BR>
<BR>

By:&nbsp;&nbsp;/s/&nbsp;&nbsp;Michael Callas<hr>
<BR>
Printed:&nbsp;&nbsp;Michael Callas<hr>
<BR>
Title:&nbsp;&nbsp;Vice President<hr>
</font></TD>
</TR>
</TABLE>
<BR>







<BR>
<BR>
<p><FONT FACE="Times New Roman, Times, Serif" SIZE=2><HR>
A<SMALL>MENDED AND </SMALL>R<SMALL>ESTATED</SMALL> G<SMALL>ENERAL</SMALL>
S<SMALL>ECURITY</SMALL> A<SMALL>GREEMENT</SMALL>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
P<small>AGE</small> 19</FONT></P>

<PAGE>




<P ALIGN=CENTER>
<FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<U>S<small>CHEDULE</small> 1</U></FONT></P>
<BR>

<P ALIGN=CENTER>
<FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<B>Former Names, Assumed Names<BR>
and Tradenames of Borrower</B></FONT></P>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>BAS<BR>
<BR>
BASi
</FONT></P>
<BR>
<BR>
<BR>


<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<B>Prior Combinations</B></FONT></P>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
The Borrower purchased 100% of the outstanding shares of Vetronics, Inc.
pursuant to that certain Stock Purchase Agreement, dated as of or about October
27, 1997, by and among the Borrower and Janet R. Andre' Bootsma, Dr. Walt
Weirich, Dr. Clare McGillem, Dr. Alan Pritsker, Dr. Jorge Aunon and David
Wortma.</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Borrower
purchased 100% of the outstanding shares of T.P.S., Inc. pursuant to that
certain Share Purchase Agreement, dated as of December 9, 1999, by and among the
Borrower, James A. Botta, Jr., Jarilyn B. Botta, Robert B. Botta, Deryl T. Botta
and Sheryl B. Abreu. The Borrower subsequently changed the name of this entity
to BAS Evansville, Inc. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Bioanalytical
Systems Limited (a wholly-owned subsidiary of the Borrower) purchased 100% of
the outstanding shares of Clinical Innovations Ltd. pursuant to that certain
Share Purchase Agreement, dated as of July 9, 1998, by and among Bioanalytical
Systems Limited, James B. Spence, Carol Anne Green, Bryan Green and John Cooper.
</FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Borrower
purchased 100% of the outstanding shares of LC Resources Inc. pursuant to that
certain Stock Purchase Agreement, dated as of December 13, 2002, by and among
the Borrower, LC Resources Inc., John W. Dolan, Snyder Family Trust UDT, Thomas
H. Jupille, and Derek L. Sourthern. The Borrower changed the name of this entity
to BASi Northwest Laboratory, Inc. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Default" -->
<P ALIGN=JUSTIFY><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Borrower
and PI Acquisition Corp., a Maryland corporation and wholly-owned subsidiary of
Borrower, entered into a Merger Agreement with PharmaKinetics Laboratories,
Inc., a Maryland corporation, whereby PharmaKinetics Laboratories, Inc. was
merged with and into PI Acquisition Corp. and PharmaKinetics Laboratories, Inc.
was the surviving corporation. Pursuant to the Merger Agreement, dated as of
June 20, 2002, all outstanding shares of PharmaKinetics Laboratories, Inc.
common stock were terminated and shareholders were issued Borrower&#146;s common
shares. The Borrower subsequently changed the name of PharmaKinetics
Laboratories, Inc. to BASi Maryland, Inc. </FONT></P>





<BR>
<BR>
<p><FONT FACE="Times New Roman, Times, Serif" SIZE=2><HR>
A<SMALL>MENDED AND </SMALL>R<SMALL>ESTATED</SMALL> G<SMALL>ENERAL</SMALL>
S<SMALL>ECURITY</SMALL> A<SMALL>GREEMENT</SMALL></FONT></P>

<PAGE>







<P ALIGN=CENTER>
<FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<U>S<small>CHEDULE</small> 2</U></FONT></P>
<BR>

<P ALIGN=CENTER>
<FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<B>Trademark and Trademark Applications and Copyright Registrations</B></FONT></P>
<BR>


<TABLE CELLPADDING=5 CELLSPACING=0 BORDER=0 align=center WIDTH=70%>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Application or<BR>
<U>Registration No.</U></FONT></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>Trademark</U></FONT></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>Country&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></FONT></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Registration<BR>
<U>Date</U></FONT></TH></TR>
<TR VALIGN=top>
     <TD WIDTH=22% ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2,083,635&nbsp;</FONT></TD>
     <TD WIDTH=23% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>BAS (Stylized)</FONT></TD>
     <TD WIDTH=24% align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>United States</FONT></TD>
     <TD WIDTH=15% align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>07/29/1997</FONT></TD></TR>
<TR VALIGN=top>
     <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1,461,414&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>BAS ANALYTICS (Stylized)</FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>United States</FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>10/13/1987</FONT></TD></TR>
<TR VALIGN=top>
     <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>2,431,031&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>CULEX</FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>United States</FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>02/27/2001</FONT></TD></TR>
<TR VALIGN=top>
     <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>76/424,603</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>EMPIS</FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>United States</FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>08/03/2004</FONT></TD></TR>
<TR VALIGN=top>
     <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>76/440,731</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>EMPIS (and Design)</FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>United States</FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>08/03/2004</FONT></TD></TR>
<TR VALIGN=top>
     <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>1,902,141&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>UNIJET</FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>United States</FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>06/27/1995</FONT></TD></TR>
<TR VALIGN=top>
     <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>TX4-877-335</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Raturn v1.0 (copyright)</FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>n/a</FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>10/19/1998</FONT></TD></TR>
</TABLE>
<BR><BR><BR><BR>









<BR>
<BR>
<p><FONT FACE="Times New Roman, Times, Serif" SIZE=2><HR>
A<SMALL>MENDED AND </SMALL>R<SMALL>ESTATED</SMALL> G<SMALL>ENERAL</SMALL>
S<SMALL>ECURITY</SMALL> A<SMALL>GREEMENT</SMALL></FONT></P>

<PAGE>




<P ALIGN=CENTER>
<FONT FACE="Times New Roman, Times, Serif" SIZE=2>S<small>CHEDULE</small> 2 (Cont&#146;d)</FONT></P>
<BR>

<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<B>Patents</B></FONT></P>
<BR>


<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 ALIGN=Center WIDTH=90%>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>Title</U></FONT></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>Patent No.</U></FONT></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>Issue Date</U></FONT></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>Serial No.</U></FONT></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>Filed</U></FONT></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>Country</U></FONT></TH></TR>

<TR><TD>&nbsp;
</TD></TR>

<TR VALIGN=Bottom>
     <TD WIDTH=20% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Linear Microdialysis</FONT></TD>
     <TD WIDTH=20% align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5,706,806&nbsp;</FONT></TD>
     <TD WIDTH=15% align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>01/13/1998</FONT></TD>
     <TD WIDTH=15% align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>08/638,642</FONT></TD>
     <TD WIDTH=15% align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>04/26/1996</FONT></TD>
     <TD WIDTH=15% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>United States</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Probe with Support</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Fiber</FONT></TD></TR>

<TR>
<TD>&nbsp;</TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Electrochemical</FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5,399,256&nbsp;</FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>03/21/1995</FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>08/178,913</FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>01/07/1994</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>United States</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Detector Cell</FONT></TD></TR>

<TR>
<TD>&nbsp;</TD></TR>

<TR VALIGN=top>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Movement-<BR>Responsive<BR>System for Conducting<BR>Tests on Freely-Moving<BR>Animals</FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>0,872,179&nbsp;</FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>02/12/2003</FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>97310046.4</FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>12/12/1997</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>European<BR>Patent<BR>Convention</FONT></TD></TR>

<TR>
<TD>&nbsp;</TD></TR>

<TR VALIGN=top>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Movement-<BR>Responsive<BR>System for Conducting<BR>Tests on Freely-Moving<BR>Animals</FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>published&nbsp;</FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>published</FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>99307384</FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>09/17/1999</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>European<BR>Patent<BR>Convention</FONT></TD></TR>

<TR>
<TD>&nbsp;</TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Movement-</FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>published&nbsp;</FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>published</FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>106661/98</FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>04/16/1998</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Japan</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Responsive</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>System for Conducting</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Tests on Freely-Moving</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Animals</FONT></TD></TR>

<TR>
<TD>&nbsp;</TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Movement-</FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>5,816,256&nbsp;</FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>10/06/1998</FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>08/839,299</FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>04/17/1997</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>United States</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>System for Conducting</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Tests on Freely-Moving</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Animals</FONT></TD></TR>

<TR>
<TD>&nbsp;</TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Movement-</FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6,062,224&nbsp;</FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>05/16/2000</FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>09/156,459</FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>09/18/1998</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>United States</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>System for Conducting</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Tests on Freely-Moving</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Animals</FONT></TD></TR>

<TR>
<TD>&nbsp;</TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Movement- DK/EP</FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>0,872,179&nbsp;</FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>02/12/2003</FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>97310046.4</FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>12/12/1997</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Denmark</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>System for Conducting</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Tests on Freely-Moving</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Animals</FONT></TD></TR>

<TR>
<TD>&nbsp;</TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Movement-</FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>0,872,179(E)</FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>02/24/2003</FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>97310046.4</FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>12/12/1997</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Spain</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>System for Conducting</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Tests on Freely-Moving</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Animals</FONT></TD></TR>

<TR>
<TD>&nbsp;</TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Movement-</FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>0,872,179(E)</FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>97310046.4</FONT></TD>
     <TD align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>12/12/1997</FONT></TD>
     <TD align=left><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Belgium</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>System for Conducting</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Tests on Freely-Moving</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Animals</FONT></TD></TR>
</TABLE>

<BR>
<BR>
<p><FONT FACE="Times New Roman, Times, Serif" SIZE=2><HR>
A<SMALL>MENDED AND </SMALL>R<SMALL>ESTATED</SMALL> G<SMALL>ENERAL</SMALL>
S<SMALL>ECURITY</SMALL> A<SMALL>GREEMENT</SMALL></FONT></P>

<PAGE>



<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
S<small>CHEDULE</small> 2 (Cont&#146;d)<BR>
<BR>
<B>Registered Copyrights<BR>
<BR>
Patents</B></FONT></P>
<BR>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>Title</U></FONT></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>Patent No.</U></FONT></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>Issue Date</U></FONT></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>Serial No.</U></FONT></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>Filed</U></FONT></TH>
     <TH><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>Country</U></FONT></TH></TR>

<TR><TD>&nbsp;
</TD></TR>

<TR VALIGN=Bottom>
     <TD WIDTH=20% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Pinch Value</FONT></TD>
     <TD WIDTH=15% ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>published</FONT></TD>
     <TD WIDTH=15% ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>published</FONT></TD>
     <TD WIDTH=20% ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>10/175,580</FONT></TD>
     <TD WIDTH=15% ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>06/19/2002</FONT></TD>
     <TD WIDTH=10% ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>United States</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>and Method</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>of Operating Same</FONT></TD></TR>

<TR><TD>&nbsp;
</TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Device, System</FONT></TD>
     <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>6,557,898</FONT></TD>
     <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>05/06/2003</FONT></TD>
     <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>09/804,900</FONT></TD>
     <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>03/13/2001</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>United States</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>and Method for</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Labeling</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Three-Dimensional</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Objects</FONT></TD></TR>

<TR><TD>&nbsp;
</TD></TR>

<TR VALIGN=top>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Device, System and<BR>
Method for Labeling<BR>
Three-Dimensional<BR>
Objects</FONT></TD>
     <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>published</FONT></TD>
     <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>published</FONT></TD>
     <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>WO 02/072365 A1</FONT></TD>
     <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>03/11/2002</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>World<BR>Intellectual<BR>Property<BR>Organization</FONT></TD></TR>

<TR><TD>&nbsp;
</TD></TR>

<TR VALIGN=top>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Device and Method</FONT></TD>
     <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>pending</FONT></TD>
     <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>pending</FONT></TD>
     <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>60/393,738</FONT></TD>
     <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>07/03/2002</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>United States</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Electrocardiology on</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Freely Moving Animals</FONT></TD></TR>

<TR><TD>&nbsp;
</TD></TR>

<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Device and Method</FONT></TD>
     <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>pending</FONT></TD>
     <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>pending</FONT></TD>
     <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>60/393,816</FONT></TD>
     <TD ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>07/03/2002</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>United States</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Drug Delivery to</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Animals</FONT></TD></TR>
</TABLE>


<BR>
<BR>
<p><FONT FACE="Times New Roman, Times, Serif" SIZE=2><HR>
A<SMALL>MENDED AND </SMALL>R<SMALL>ESTATED</SMALL> G<SMALL>ENERAL</SMALL>
S<SMALL>ECURITY</SMALL> A<SMALL>GREEMENT</SMALL></FONT></P>

<PAGE>





<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
S<small>CHEDULE</small> 2 (Cont&#146;d)<BR>
<BR>
<B>Licenses</B></FONT></P>
<BR>

<!-- MARKER FORMAT-SHEET="Signature Block" FSL="Workstation" -->
<TABLE WIDTH=100% CELLSPACING=0 CELLPADDING=0 BORDER=0>
<TR VALIGN=bottom>
<Th WIDTH=25%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<U>Name of Licensee</U></FONT></Th>
<Th WIDTH=25%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Licensed<BR>
<U>Mark</U>
</font></Th>
<Th WIDTH=25%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Date of<BR>
<U>License</U>
</font></Th>
<Th WIDTH=25%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Expiration<BR><U>Date</U>
</font></Th>
</TR>
</TABLE>
<BR>

<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
There are no licenses that are for products, services, or intellectual property
that generate revenues for Borrower (i.e., numerous user software licenses are
not included herein).</FONT></P>




<BR>
<BR>
<p><FONT FACE="Times New Roman, Times, Serif" SIZE=2><HR>
A<SMALL>MENDED AND </SMALL>R<SMALL>ESTATED</SMALL> G<SMALL>ENERAL</SMALL>
S<SMALL>ECURITY</SMALL> A<SMALL>GREEMENT</SMALL></FONT></P>

<PAGE>




<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
S<small>CHEDULE</small> 3<BR>
<BR>
<B>Location of Collateral</B></FONT></P>
<BR>


<P ALIGN=justify><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<B>Equipment Locations:</B><BR>
<BR>
Bioanalytical Systems, Inc.<BR>
2701 Kent Avenue<BR>
West Lafayette, Indiana 47906<BR>
<BR>
BAS Evansville, Inc.<BR>
1024 Middle Mt. Vernon Road<BR>
Mount Vernon, Indiana 47620<BR>
<BR>
BASi Northwest Laboratory, Inc.<BR>
2075 Lafayette Avenue<BR>
McMinnville, Oregon  97128<BR>
<BR>
BASi Maryland, Inc.<BR>
302 West Fayette Street<BR>
Baltimore, Maryland  21201<BR>
<BR>
<B>Inventory Locations:</B><BR>
<BR>
Bioanalytical Systems, Inc.<BR>
2701 Kent Avenue<BR>
West Lafayette, Indiana 47906<BR>
</FONT></P>




<BR>
<BR>
<p><FONT FACE="Times New Roman, Times, Serif" SIZE=2><HR>
A<SMALL>MENDED AND </SMALL>R<SMALL>ESTATED</SMALL> G<SMALL>ENERAL</SMALL>
S<SMALL>ECURITY</SMALL> A<SMALL>GREEMENT</SMALL></FONT></P>

<PAGE>





<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
S<small>CHEDULE</small> 4<BR>
<BR>
<B>Investment Property</B><BR>
<BR>
<BR>
A.&nbsp;&nbsp;&nbsp;&nbsp;<U>U.S. C<small>ERTIFICATED</small> S<small>ECURITIES</small></U>:</FONT></P>


<TABLE WIDTH=100% CELLSPACING=0 align=center CELLPADDING=0 BORDER=0>

<TR VALIGN=bottom>
<Th WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<U>Issuer</U></FONT></Th>
<Th WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Issuer's<BR><U>Organization</U></FONT></Th>
<Th WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Certificate<BR><U>Number</U></FONT></Th>
<Th WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Number of<BR><U>Shares Owned</U></FONT></Th>
<Th WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Number of<BR><U>Shares Pledged</U></FONT></Th>
<Th WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Percentage<BR>of Shares<BR><U>Pledged</U></FONT></Th>
</TR>

<TR><TD>&nbsp;
</TD></TR>


<TR VALIGN=TOP>
<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
BAS<BR>
Evansville, Inc.</FONT></TD>
<TD align=center WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;</FONT></TD>
<TD align=center WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
1</FONT></TD>
<TD align=center WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
294</FONT></TD>
<TD align=center WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
294</FONT></TD>
<TD align=center WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
100%</FONT></TD>
</TR>

<TR>
<TD>&nbsp;
</TD></TR>

<TR VALIGN=TOP>
<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
BAS<BR>
Maryland, Inc.</FONT></TD>
<TD align=center WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;</FONT></TD>
<TD align=center WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
</FONT></TD>
<TD align=center WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
</FONT></TD>
<TD align=center WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
</FONT></TD>
<TD align=center WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
100%</FONT></TD>
</TR>

<TR><TD>&nbsp;
</TD></TR>

<TR VALIGN=TOP>
<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
BAS Northwest<BR>
Laboratory, Inc.</FONT></TD>
<TD align=center WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;</FONT></TD>
<TD align=center WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
</FONT></TD>
<TD align=center WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
</FONT></TD>
<TD align=center WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
</FONT></TD>
<TD align=center WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
100%</FONT></TD>
</TR>

</TABLE>
<BR>



<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
B.&nbsp;&nbsp;&nbsp;&nbsp;<U>N<small>ON</small>-U.S. C<small>ERTIFICATED</small>
S<small>ECURITIES</small> (&#147;F<small>OREIGN</small>
S<small>UBSIDIARIES</small></U>&#148;)</FONT></P>

<TABLE WIDTH=100% CELLSPACING=0 align=center CELLPADDING=0 BORDER=0>

<TR VALIGN=bottom>
<Th WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<U>Issuer</U></FONT></Th>
<Th WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Issuer's<BR><U>Organization</U></FONT></Th>
<Th WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Certificate<BR><U>Number</U></FONT></Th>
<Th WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Number of<BR><U>Shares Owned</U></FONT></Th>
<Th WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Number of<BR><U>Shares Pledged</U></FONT></Th>
<Th WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Percentage<BR>of Shares<BR><U>Pledged</U></FONT></Th>
</TR>

<TR><TD>&nbsp;
</TD></TR>


<TR VALIGN=TOP>
<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Bioanalytical<BR>Systems, Ltd.</FONT></TD>
<TD align=center WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;</FONT></TD>
<TD align=center WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
</FONT></TD>
<TD align=center WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
</FONT></TD>
<TD align=center WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
</FONT></TD>
<TD align=center WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
65%</FONT></TD>
</TR>

<TR><TD>&nbsp;
</TD></TR>

<TR VALIGN=TOP>
<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
BAS<BR>Instruments, Ltd.</FONT></TD>
<TD align=center WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;</FONT></TD>
<TD align=center WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
</FONT></TD>
<TD align=center WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
</FONT></TD>
<TD align=center WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
</FONT></TD>
<TD align=center WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
65%</FONT></TD>
</TR>

<TR><TD>&nbsp;
</TD></TR>


<TR VALIGN=TOP>
<TD WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
BAS Analytics, Ltd.</FONT></TD>
<TD align=center WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
&nbsp;</FONT></TD>
<TD align=center WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
</FONT></TD>
<TD align=center WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
</FONT></TD>
<TD align=center WIDTH=15%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
</FONT></TD>
<TD align=center WIDTH=20%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
65%</FONT></TD>
</TR>
</table>

<P ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
C.&nbsp;&nbsp;&nbsp;&nbsp;<u>U<small>NCERTIFICATED</small> S<small>ECURITIES</small></u>:</FONT></P>

<TABLE WIDTH=100% CELLSPACING=0 align=center CELLPADDING=0 BORDER=0>

<TR VALIGN=bottom>
<Th WIDTH=25%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<U>Issuer</U></FONT></Th>
<Th WIDTH=25%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
Issuer&#146;s<BR><U>Organization</U></FONT></Th>
<Th WIDTH=25%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<U>Description of Collateral</U></FONT></Th>
<Th WIDTH=25%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<U>Percentage Ownership Interest</U></FONT></Th>
</TR>
</table>

<P ALIGN=center><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
None<BR>
<BR>
D.&nbsp;&nbsp;&nbsp;&nbsp;<U>S<small>ECURITY</small> E<small>NTITLEMENTS</small></U>:<BR>
<BR>
None<BR>
<BR>
E.&nbsp;&nbsp;&nbsp;&nbsp;<U>S<small>ECURITY</small> A<small>CCOUNTS</small></U>:<BR>
<BR>
None<BR>
<BR>
F.&nbsp;&nbsp;&nbsp;&nbsp;<U>C<small>OMMODITY</small> C<small>ONTRACTS</small></U>:<BR>
<BR>
None<BR>
<BR>
G.&nbsp;&nbsp;&nbsp;&nbsp;<U>C<small>OMMODITY</small> A<small>CCOUNTS</small></U>:<BR>
<BR>
None<BR>
</FONT></P>







<p><FONT FACE="Times New Roman, Times, Serif" SIZE=2><HR>
A<SMALL>MENDED AND </SMALL>R<SMALL>ESTATED</SMALL> G<SMALL>ENERAL</SMALL>
S<SMALL>ECURITY</SMALL> A<SMALL>GREEMENT</SMALL></FONT></P>

<PAGE>



<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
S<small>CHEDULE</small> 5<BR>
<BR>
<BR>

<B>Negotiable Collateral</B><BR>
<BR>
None</FONT></P>




<BR>
<BR>
<p><FONT FACE="Times New Roman, Times, Serif" SIZE=2><HR>
A<SMALL>MENDED AND </SMALL>R<SMALL>ESTATED</SMALL> G<SMALL>ENERAL</SMALL>
S<SMALL>ECURITY</SMALL> A<SMALL>GREEMENT</SMALL></FONT></P>




</BODY>
</HTML>

</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
