LOGO] L.O.M Medical International Inc. Phone & Fax: (250)769-6265 494 Casa Rio Drive 769-0894 Kelowna V1Z 3L6 VANCOUVER OFFICE Phone: 604 602 9400 DEMAND LOAN AGREEMENT

[LOGO]    L.O.M Medical International Inc.        Phone & Fax: (000)000-0000
          000 Xxxx Xxx Xxxxx                                        000-0000
          Xxxxxxx
          X0X 0X0 
          VANCOUVER OFFICE                        Phone:        000 000 0000




                              DEMAND LOAN AGREEMENT

                                     BETWEEN

                          XXXXX X. XXXXXXXX (Borrower)

                                       AND

                       L.O.M. LABORATORIES INC. (Lenders)


                           Loan Type:   Demand
                           Term:        Open
                           Interest:    Royal Bank Prime


                       AMOUNT; $ 17,000.00 CAD
                       SEVENTEEN THOUSAND DOLLARS CANADIAN

                        DATED THIS 10th DAY OF JULY,1997
 
                                     [SEAL]

For the Lender                          For the Borrower
L.O.M. LABORATORIES INC.                XXXXX XXXXXXXX


/s/ XXXX XXXXXXXXXXXX                   /s/ XXXXX XXXXXXXX
-----------------------------           -----------------------------
XXXX XXXXXXXXXXXX, PRES                 XXXXX X. XXXXXXXX
                                        00000-00 XXXXX 
                                        XXXXXXX, XX
                                        X0X 0X0




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