BUSINESS LOAN AGREEMENT
THIS BUSINESS LOAN AGREEMENT BETWEEN VISION - SCIENCES, INC. AND MACHIDA, INC.
(REFERRED TO IN THIS AGREEMENT INDIVIDUALLY AND COLLECTIVELY AS "BORROWER")
AND THE FIRST NATIONAL BANK OF BOSTON (REFERRED TO IN THIS AGREEMENT AS
"LENDER") IS MADE AND EXECUTED ON THE FOLLOWING TERMS AND CONDITIONS.
BORROWER HAS RECEIVED PRIOR COMMERCIAL LOANS FROM LENDER OR HAS APPLIED
TO LENDER FOR A COMMERCIAL LOAN OR LOANS AND OTHER FINANCIAL
ACCOMMODATIONS, INCLUDING THOSE WHICH MAY BE DESCRIBED ON ANY EXHIBIT OR
SCHEDULE ATTACHED TO THIS AGREEMENT. ALL SUCH LOANS AND FINANCIAL
ACCOMMODATIONS, TOGETHER WITH ALL FUTURE LOANS AND FINANCIAL
ACCOMMODATIONS FROM LENDER TO BORROWER, ARE REFERRED TO IN THIS
AGREEMENT INDIVIDUALLY AS THE "LOAN" AND COLLECTIVELY AS THE "LOANS."
BORROWER UNDERSTANDS AND AGREES THAT: (a) IN GRANTING, RENEWING, A
EXTENDING ANY LOAN, LENDER IS RELYING UPON BORROWER'S REPRESENTATIONS,
WARRANTIES, AND AGREEMENTS, AS SET FORTH IN THIS AGREEMENT; (b) THE GRANTING,
RENEWING, OR EXTENDING OF ANY LOAN BY LENDER AT ALL TIMES SHALL BE SUBJECT
TO LENDER'S SOLE JUDGMENT AND DISCRETION; AND (c) ALL SUCH LOANS SHALL BE AND
SHALL REMAIN SUBJECT TO THE FOLLOWING TERMS AND CONDITIONS OF THIS
TERM. This Agreement shall be effective as of February 15, 1997, and shall continue thereafter until all
Indebtedness of Borrower to Lender has been performed in full and the parties terminate this Agreement in
DEFINITIONS. The following words shall have the following meanings when used in this Agreement. Terms not
otherwise defined in this Agreement shall have the meanings attributed to such terms in the Uniform Commercial
Code. All references to dollar amounts shall mean amounts in lawful money of the United States of America.
AGREEMENT. The word "Agreement" means this Business Loan Agreement together with all exhibits and
schedules attached to this Business Loan Agreement from time to time, if any, as amended from time to time.