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                           LOAN AND SECURITY AGREEMENT

   This LOAN AND SECURITY AGREEMENT is entered into as of March 15, 1996 between
FREMONT BUSINESS CREDIT, A DIVISION OF FREMONT FINANCIAL CORPORATION, a 
California corporation (FREMONT), with a place of business located at 2020 
Santa Monica Boulevard, Suite 500, Santa Monica, California 90404-2023 and 
International Food and Beverage, Inc. a Delaware corporation (BORROWER), with 
its chief executive office located at 30152 Aventura, Rancho Santa Margarita, 
CA 92688

     The parties agree as follows:

     1.   DEFINITIONS AND CONSTRUCTION

          1.1  TERMS. In addition to the terms that are defined within this
Agreement, the following terms shall have the following definitions when used in
this Agreement:

          ACCOUNT DEBTOR means any Person who is or who may become obligated
under, with respect to, or on account of an Account.

          ACCOUNTS means all presently existing and hereafter arising accounts
receivable, contract rights, and all other forms of obligations owing to 
Borrower arising out of the sale or lease of goods or the rendition of 
services by Borrower, whether or not earned by performance, all credit 
insurance, guaranties, and other security therefor, as well as all goods 
returned to or reclaimed by Borrower and Borrower's Books relating to any of 
the foregoing.

          AGREEMENT means this Loan and Security Agreement and any riders,
addenda, extensions, supplements, amendments or modifications to or in 
connection with this Loan and Security Agreement.

          AUTHORIZED OFFICER means any officer of Borrower authorized in writing
to transact business with Fremont.

          BANKRUPTCY CODE means the United States Bankruptcy Code (11 U.S.C.
Sections 101 ET SEC.), as amended, and any success or statute.

          BORROWER'S BOOKS means all of Borrower's books and records including
all of the following: ledgers; records indicating, summarizing or evidencing
Borrower's assets (including the Collateral) or liabilities; all information
relating to Borrower's business operations or financial condition; and all
computer programs, disk or tape files, printouts, runs or other computer
prepared information, and the equipment containing such information.

          BUSINESS DAY means any day which is not a Saturday, Sunday or other
day on which banks in the State of California are authorized or required to 
close.

          CODE means the California Uniform Commercial Code, as amended from
time to time.

          COLLATERAL means all of the following: the Accounts; the Equipment;
the General Intangibles; the Inventory; the Negotiate Collateral; any money or
other assets of Borrower which hereafter come into the possession. custody or
control of Fremont; and all proceeds and products, whether tangible or
intangible, of any of the foregoing, including proceeds of insurance covering
any or all of the Collateral, and any and all Accounts, Equipment, General
Intangibles, Inventory, Negotiable Collateral, money, deposit accounts or other
tangible or intangible property resulting from the sale or other disposition of
the Collateral, or any portion thereof or interest therein, and the proceeds
thereof.

          ELIGIBLE ACCOUNTS means those Accounts created by Borrower in the 
ordinary course of business that arise out of Borrower's sale of goods or 
rendition of services, are owing from Account Debtors that are acceptable to 
Fremont, strictly comply with all of Borrower's representations and warranties 
to Fremont and are, and at all times continue to be, acceptable to Fremont in 
all respects; provided, however, that standards of eligibility may be fixed 
and revised from time to time by Fremont in Fremont's exclusive judgment. In 
determining such eligibility, Fremont may, but is not obligated to, rely on 
agings, reports and schedules of Accounts furnished by Borrower, but reliance 
by Fremont thereon from time to time shall not be deemed to limit Fremont's 
right to revise standards of eligibility at any time as to both Borrower's 
present and future Accounts. Eligible Accounts shall not include any of the 
following: (a) Accounts which the Account Debtor has failed to pay within 
forty-five (45) days after the original invoice date; (b) all Accounts owed 
by any Account Debtor that has failed to pay twenty-five percent (25.0%)(1) 
or more of its Accounts owed to Borrower within forty-five( 45 ) days after 
the original invoice date; (c) Accounts with respect to which the Account 
Debtor is an officer, director, employee or agent of Borrower;(2)(d) Accounts 
with respect to which the Account Debtor is a subsidiary of, related to, 
affiliated with or has common shareholders, officers or directors with 
Borrower; (e) Accounts with respect to which goods are placed on

(1.)  (fifty percent (50%) with respect to which the Account Debtor is Safeway,
      Inc.)
(2.)  , with the exception of Accounts with respect to which the Account Debtor
      is Sunset Specialty Foods (Processors Trading Company).

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consignment, guaranteed sale, sale on return, sale on approval, bill and 
hold, or which contain other terms by reason of which payment by the Account 
Debtor may be conditional; (f) Accounts with respect to which the Account 
Debtor is not a resident of the United States; (g) Accounts with respect to 
which the Account Debtor is the United States or any department, agency or 
instrumentality of the United States (h) Accounts with respect to which 
Borrower is or may become liable to the Account Debtor for goods sold or 
services rendered by the Account Debtor to Borrower or, for any other reason, 
are subject to any right of offset in favor of the Account Debtor; (i) 
Accounts with respect to an Account Debtor whose total obligations to 
Borrower exceed fifteen percent (15%) of all Accounts, to the extent such 
obligations exceed such percentage; (1) (j) Accounts with respect to which the 
Account Debtor disputes liability or makes any claim with respect thereto, or 
is subject to any Insolvency Proceeding, or becomes insolvent, or goes out of 
business; (k) Accounts that represent progress payments or other advance 
billings that are due prior to the completion of performance by Borrower of 
the subject contract for goods or services; or (l) Accounts are payable in 
currency other than United States dollars. With respect to Accounts that 
exceed the concentration limits set forth in clause (i) above, Fremont from 
time to time in its sole discretion may designate such Accounts as Eligible 
Accounts if Borrower is able to establish Fremont's satisfaction the 
creditworthiness of the Account Debtor and the collectability of the Accounts.

          ELIGIBLE INVENTORY means Inventory consisting of first quality raw
materials for finished goods (2) that are located at Borrower's premises, that 
strictly comply with all of Borrower's representations and warranties to 
Fremont and that are, and at all times continue to be, acceptable to Fremont 
in all respects; PROVIDED, HOWEVER that general criteria for Eligible 
Inventory may be established and revised from time to time by Fremont in 
Fremont's exclusive judgment.  In determining such eligibility, Fremont may, 
but is not obligated to, rely on reports and schedules of Inventory furnished 
to Fremont by Borrower, but reliance thereon by Fremont from time to time 
shall not be deemed to limit Fremont's right to revise standards of 
eligibility at any time.  Eligible Inventory shall not include slow moving or 
obsolete items, custom items, work in process, components which are not part 
of finished goods, spare parts, packaging and shipping materials, materials 
used or consumed in Borrower's business, goods returned to, repossessed or 
stopped in transit by Borrower. Inventory in the possession of Persons other 
than Borrower or subject to a security interest or lien in favor of any 
Person other than Fremont, bill and hold goods. Inventory which is not 
subject to Fremont's first priority, perfected security interest returned or 
defective goods, "seconds" and Inventory acquired on consignment. Eligible 
Inventory shall be valued at the lower of cost or wholesale market value.

          ENVIRONMENTAL LAW means the Comprehensive Environmental Response,
Compensation, and Liability Act of 1980, as amended, the Resource Conservation
and Recovery Act of 1976, the Hazardous Materials Transportation Act, the Toxic
Substances Control Act the regulations pertaining to such statutes, and any
other safety. health or-environmental statutes, laws, regulations or ordinances
of the United States or of any state, county or municipality in which Borrower
conducts its business or the Collateral is located.

          EQUIPMENT means all of Borrower's present and hereafter acquired
equipment, machinery, machine tools, motors, furniture, furnishings, fixtures,
motor vehicles, rolling stock, processors, tools, parts, dies, jigs, goods 
(other than consumer goods, farm products or Inventory), wherever located, and 
any interest of Borrower in any of the foregoing, and all attachments, 
accessories, accessions, replacements, substitutions, additions and 
improvements to any of the foregoing, wherever located.

          ERISA means the Employee Retirement Income Security Act of 1974, as 
amended, and the regulations thereunder.

          ERISA AFFILIATE means each trade or business (whether or not
incorporated and whether or not foreign) which is or may hereafter become a
member of a group of which Borrower is a member and which is treated as a single
employer under ERISA Section 4001(b)(1), or IRC Section 414.

          EVENT OF DEFAULT means the events specified in SECTION 8.

          FREMONT EXPENSES means all of the following: costs and expenses 
(including taxes, assessments and insurance premiums) required to be paid by 
Borrower under any of the Loan Documents which are paid or advanced by 
Fremont; filing, recording, publication, appraisal (including periodic 
Collateral appraisals), real estate survey, environmental audit and search 
fees assessed, paid or incurred by Fremont in connection with Fremont's 
transactions with Borrower; costs and expenses incurred by Fremont in the 
disbursement or collection of funds to or from Borrower; charges resulting 
from the dishonor of checks; costs and expenses paid or incurred by Fremont 
to correct any default or enforce any provision of the Loan Documents, or in 
gaining possession of, maintaining, handling, preserving, storing, shipping, 
selling, preparing for sale or advertising to sell the Collateral, or any 
portion thereof, irrespective of whether a sale is consummated; costs and 
expenses paid or incurred by Fremont that result from third party claims 
against Fremont covered by Borrower's indemnification of Fremont in SECTION 
11.4; costs and expenses paid or incurred by Fremont in enforcing or 
defending the Loan Documents; and Fremont's reasonable attorneys fees and 
expenses incurred (including the allocated costs of Fremont's in-house 
counsel) in advising, structuring, drafting, reviewing, administering, 
amending, terminating, enforcing, defending or otherwise representing Fremont 
in connection with the Loan Documents or the Obligations (including attorneys 
fees and expenses incurred in connection with a workout, a restructuring, an 
action to lift the automatic stay of Section 362 of the Bankruptcy Code, any 
other action or participation by Fremont in an Insolvency Proceeding 
concerning Borrower or any guarantor of the Obligations or any defense or 
participation by Fremont in any lender liability, preference or fraudulent 
conveyance actions).

1.   except for Accounts with respect to which Safeway, Inc., Sysco Corporation,
     and Rykoff-Sexton, Inc. are the Account Debtors, each of which shall be
     ineligible to the extent they exceed thirty-five percent (35%) of all
     Accounts, and except for Accounts with respect to which Burris Foods, Inc.
     is the Account Debtor, which shall be ineligible to the extent they exceed
     twenty percent (20%) of all Accounts;

2.   held for sale in the ordinary course of Borrower's business

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          GENERAL INTANGIBLES means all of Borrower's present and future general
intangibles and other personal property (including contract rights, rights
arising under common law, statutes or regulations, choses or things in action,
goodwill, patents, trade names, trademarks, service marks, copyrights,
blueprints, drawings, purchase orders, customer lists, monies due or recoverable
from pension funds, monies due under any royalty or licensing agreements, route
lists, infringement claims, computer programs, computer discs, computer tapes,
literature, reports, catalogs, deposit accounts, insurance premium rebates, tax
refunds and tax refund claims) other than goods and Accounts, and Borrower's 
Books relating to any of the foregoing.

          HAZARDOUS MATERIAL means any substance, material, emission or waste
which is or hereafter becomes regulated or classified as a hazardous substance,
hazardous material, toxic substance or solid waste under any Environmental Law,
asbestos, petroleum products, urea formaldehyde, polychlorinated biphenyls
(PCBs), radon and any other hazardous or toxic substance, material, emission or
waste.

          INSOLVENCY PROCEEDING means any proceeding commenced by or against any
Person under any provision of the Bankruptcy Code or under any other bankruptcy
or insolvency law, including assignments for the benefit of creditors, formal or
informal moratoria, compositions, extensions generally with its creditors or
proceedings seeking reorganization, liquidation, arrangement or other similar
relief.

          INVENTORY means all present and future inventory in which Borrower has
any interest, including goods held for sale or lease or to be furnished under a
contract of service. Borrower's present and future raw materials, work in
process, finished goods and materials used in or consumed in Borrower's
business, goods which have been returned to, repossessed by or stopped in
transit by Borrower, packing and shipping materials, wherever located, any
documents of title representing any of the above, and Borrower's Books relating
to any of the foregoing.

          IRC means the Internal Revenue Code of 1986, as amended, and the
regulations thereunder.

          LOAN DOCUMENTS means, collectively, this Agreement, any Notes, any
security agreements, pledge agreements, deeds of trust, mortgages or other
encumbrances or agreements which secure the Obligations, any guaranties of the
Obligations, any lock box or blocked account agreements and any other agreement
entered into between Borrower or any guarantor of the Obligations and Fremont
relating to or in connection with this Agreement.

          MULTIEMPLOYER PLAN means a MULTIEMPLOYER PLAN as defined in ERISA
Sections 3(37) or 4001(a)(3) or IRC Section 414(f) which covers employees of
Borrower or any ERISA Affiliate.

          NEGOTIABLE COLLATERAL means all of Borrower's present and future
letters of credit, notes, drafts, instruments, certificated and uncertificated
securities, documents, leases and chattel paper, and Borrower's Books relating
to any of the foregoing.

          NOTE means any promissory note made by Borrower to the order of
Fremont concurrently herewith or at any time hereafter.

          OBLIGATIONS means all loans, advances, debts, liabilities (including
all amounts charged to Borrower's loan account pursuant to any agreement
authorizing Fremont to charge Borrower's loan account), obligations, fees, lease
payments, guaranties, covenants and duties owing by Borrower to Fremont of any
kind and description (whether pursuant to or evidenced by the Loan Documents, by
any note or other instrument or by any other agreement between Fremont and
Borrower, and irrespective of whether for the payment of money), whether direct
or indirect, absolute or contingent, due or to become due, now existing or
hereafter arising, including any debt, liability or obligation owing from
Borrower to others which Fremont may obtain by assignment or otherwise, and all
interest thereon, including any interest that, but for the provisions of the
Bankruptcy Code, would have accrued, and all Fremont Expenses which Borrower is
required to pay or reimburse pursuant to the Loan Documents, by law or
otherwise.

          PERSON means and includes natural persons, corporations, limited
partnerships, general partnerships, joint ventures, trusts, land trusts,
business trusts or other organizations, irrespective of whether they are legal
entities, and governments and agencies and political subdivisions thereof.

          PLAN means any plan described in ERISA Section 3(2) maintained for
employees of Borrower or any ERISA Affiliate, other than a Multiemployer Plan.

          REFERENCE RATE means the variable rate of interest, per annum,
published by The Wall Street Journal as the "Prime Rate" and based on "the base
rate on corporate loans posted by at least 75% of the nation's 30 largest
banks". The Reference Rate is nothing more nor less than an index for
determining the interest rate payable under the terms of this Agreement. The
Reference Rate is not necessarily the best rate, or any other definition of
rates, offered by the banks that establish the rate or by Fremont. In the event
The Wall Street Journal ceases to publish the "Prime Rate", Fremont may
substitute any similar index for the Reference Rate.

          TERM LOAN means any term loan made by Fremont to Borrower, evidenced
by and repayable in accordance with the terms and conditions of a Note.

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          1.2  CONSTRUCTION. Unless the context of this Agreement clearly
requires otherwise, references to the plural include the singular, references to
the singular include the plural, the term "including" is not limiting and the
term "or" has the inclusive meaning generally represented by the phrase
"and/or". The words HEREOF, HEREIN, HEREBY, HEREUNDER, and similar terms in this
Agreement refer to this Agreement as a whole and not to any particular provision
of this Agreement. Section, subsection, clause, exhibit and schedule references
are to this Agreement unless otherwise specified. Any reference in this
Agreement or in any of the other Loan Documents to this Agreement or any of the
other Loan Documents shall include all alterations, amendments, changes,
extensions, modifications, renewals, replacements, substitutions and supplements
thereto and thereof.

          1.3  ACCOUNTING TERMS. All accounting terms not specifically defined
herein shall be construed in accordance with generally accepted accounting
principles (GAAP) as in effect from time to time. When used herein, the term
FINANCIAL STATEMENTS SHALL include the notes and schedules thereto.

          1.4  RIDERS, EXHIBITS, ETC. The Conditions Precedent Rider to this
Agreement and all of the other riders, exhibits, addenda and schedules to this
Agreement shall be deemed incorporated herein by reference.

          1.5  CODE. Any terms used in this Agreement which are defined in the
Code shall be construed and defined as set forth in the Code unless otherwise
defined herein.

     2.   ADVANCES AND TERMS OF PAYMENT

          2.1  LOANS.

               A. REVOLVING ADVANCES; REVOLVING ADVANCE LIMIT. Upon the request
of Borrower, made at any time or from time to time during the term hereof, and
so long as no Event of Default has occurred and is continuing, Fremont shall, in
its sole discretion, make advances (the REVOLVING ADVANCES) to Borrower in an
amount up to (a)seventy-five  percent (75%) of the aggregate outstanding amount
of Eligible Accounts, PLUS (b) the lesser of (1) fifty percent (50 %) of the
aggregate value of the Eligible Inventory or (2) One Hundred Thousand Dollars ($
100,000.00): PROVIDED, HOWEVER, that in no event shall the aggregate amount of
the outstanding Revolving Advances be greater than, at any time, the sum of Five
Hundred Thousand Dollars ($500,000.00) (the REVOLVING ADVANCE LIMIT). Fremont
may reduce its advance rates on Eligible Accounts or Eligible Inventory or
establish reserves with respect to borrowing availability if Fremont determines,
in its sole discretion, that there has occurred, or is likely to occur, an
impairment of the prospect of repayment of all or any portion of the
Obligations, the value of the Collateral or the validity or priority of
Fremont's security interests in the Collateral.

               B. Section is deleted.

               C. ADVANCE LIMIT. The sum of the Revolving Advance Limit PLUS
the principal amount of all Term Loans outstanding from time to time, if any, is
referred to herein as the ADVANCE LIMIT.

          2.2  OVERADVANCES. All Revolving Advances made hereunder shall be
added to and deemed part of the Obligations when made. If, at any time and for
any reason, the aggregate amount of the outstanding Revolving Advances exceeds
the dollar or percentage limitations contained in SECTION 2.1A (an OVERADVANCE),
then Borrower shall, upon demand by Fremont, immediately pay to Fremont, in
cash, the amount of such excess.

          2.3  OVERADVANCE FEE. Without affecting Borrower's obligation to
immediately repay to Fremont the amount of each Overadvance in accordance with
the provisions of SECTION 2.2, in the event Fremont agrees to permit any
Overadvance to exist and continue and in consideration for permitting such
Overadvance to exist and continue, Borrower shall pay to Fremont a fee in an
amount equal to two percent (2.0%) per month on the amount of the Overadvance
for each day any Overadvance exists. All such fees shall be computed on the
basis of a thirty (30) day month for the actual number of days elapsed.

          2.4  AUTHORIZATION TO MAKE REVOLVING ADVANCES. Borrower hereby 
authorizes Fremont to make the Revolving Advances based upon telephonic or 
other instructions received from any one purporting to be an Authorized 
Officer, or, at the discretion of Fremont without instructions from or notice 
to Borrower, if such Revolving Advances are necessary to satisfy any 
Obligations. All requests for Revolving Advances hereunder shall specify the 
date on which the requested Revolving Advance is to be made (which day shall 
be a Business Day) and the amount of the requested Revolving Advance. 
Requests received after 11:00 a.m. Pacific time on any day shall be deemed to 
have been made as of the opening of business on the immediately following 
Business Day. All Revolving Advances made under this

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Agreement shall be conclusively presumed to have been made to, at the request 
of, and for the benefit of Borrower when deposited to the credit of Borrower 
or otherwise disbursed in accordance with the instructions of Borrower or in 
accordance with the terms and conditions of this Agreement.

          2.5  INTEREST.

               A. BASIC RATE; DEFAULT RATE. Except where specified to the
contrary in any Loan Document, the aggregate outstanding amount of all 
Obligations shall bear interest at the rate of six percent (6.0%) per annum 
above the Reference Rate.  The aggregate outstanding amount of all 
Obligations shall bear interest, from and after written notice by Fremont to 
Borrower of the occurrence of an Event of Default and without constituting a 
waiver of any such Event of Default, at the rate of nine percent (9.0%) per 
annum above the Reference Rate; PROVIDED, HOWEVER, that in the event an 
Insolvency Proceeding is commenced by or against Borrower, Fremont may charge 
such default rate of interest without providing written notice thereof to 
Borrower. All interest payable under the Loan Documents shall be computed on 
the basis of a three hundred sixty (360) day year for the actual number of 
days elapsed, based on the aggregate amount of the Obligations that are 
outstanding on each day. Interest shall continue to accrue until all of the 
Obligations are paid in full.

               B. INITIAL RATE. The Reference Rate as of the date  of this 
Agreement is eight and one-quarter  percent (8.25%) per annum, and, 
therefore, the effective rate of interest hereunder as of the date of this 
Agreement is fourteen and one-quarter percent (14.25%) per annum.  The 
interest rate payable by Borrower under the terms of this Agreement shall be 
adjusted in accordance with any change in the Reference Rate from time to 
time on the date of any such change. All interest payable by Borrower shall 
be due and payable on the first day of each calendar month during the term of 
this Agreement.

               C. MINIMUM INTEREST PAYMENT. Not withstanding anything to the 
contrary contained in the Loan Documents, Borrower shall pay Fremont a 
minimum monthly interest charge in respect of the Obligations equal to Two 
Thousand Five Hundred Dollars ($2,500.00) per month.

          2.6  VERIFICATION AND COLLECTION OF ACCOUNTS.  Fremont or Fremont's
designee may, at any time, with or without notice to  Borrower, (a) notify
Account Debtors of Borrower that the Accounts have been assigned to Fremont and
that Fremont has a security interest in the Accounts; (b) contact Account
Debtors of Borrower, either in writing or by telephone, for the purpose of 
verifying the validity, amount or any other matter relating to any Accounts; 
and (c) collect the Accounts directly and charge the collection costs and 
expenses to Borrower's loan account. Unless and until Fremont begins direct 
collection of the Accounts or gives Borrower other written instructions, 
Borrower shall collect all Accounts and the proceeds of other Collateral for 
the benefit of Fremont, receive in trust all payments thereon as Fremont's 
trustee and immediately deliver said payments to Fremont in their original 
form as received by Borrower (subject to the terms of any lockbox, blocked 
account or similar agreement entered into for the purpose of collection of 
the Accounts).

          2.7  CREDITING PAYMENTS. For the purpose of calculating the
availability of Revolving Advances under SECTION 2.1A, the receipt by Fremont 
of any wire transfer of funds, check or other item of payment shall be 
applied immediately to provisionally reduce the Obligations, but such receipt 
shall not be considered a payment on account unless such wire transfer is of 
immediately available federal funds and is made to the appropriate deposit 
account of Fremont or unless and until such check or other item of payment is 
honored when presented for payment. For the purpose of calculating interest 
under SECTION 2.5A, the receipt by Fremont of any wire transfer of funds, 
check or other item of payment shall be deemed to have occurred four (4) 
Business Days after the date Fremont actually receives such item of payment. 
In the event any check or other item of payment is not honored when presented 
for payment, Borrower shall be deemed not to have made such payment and 
interest shall  be recalculated accordingly. Not withstanding anything to the 
contrary contained herein, any wire transfer, check or other item of payment 
received by Fremont after 11:00 a.m. Pacific time shall  be deemed to have 
been received by Fremont as of the opening of business on the immediately 
following Business Day.

          2.8  (Intentionally has been deleted.)

          2.9  LOAN ORIGINATION FEE.  Borrower shall pay Fremont a fee (the LOAN
ORIGINATION FEE)in the amount of Five Thousand Dollars ($5,000.00).  The
Loan Origination Fee shall be fully earned and is due and payable on the date
that the initial REVOLVING ADVANCE is made hereunder.
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          2.10 SERVICING FEE.  Borrower shall pay Fremont a monthly fee (the
SERVICING FEE) in an amount equal to Two Hundred Fifty Dollars ($250.00).  The
Servicing Fee shall be payable on the first day of each calendar month in
respect of Fremont's services for the preceding calendar month. The Servicing
Fee shall be payable for the entire term of this Agreement, including all
renewal terms, or so long as any of the Obligations are outstanding.

          2.11 DOCUMENTATION FEE. Borrower shall pay Fremont a fee (the
DOCUMENTATION FEE)in the amount of One Thousand Dollars ($1,000).  The
Documentation Fee shall be fully earned and is due and payable on the date that
the initial Revolving Advance is made hereunder.

          2.12 AUDIT FEE. Borrower shall pay Fremont an audit fee in an amount
equal to Five Hundred Dollars ($500) for each audit of Borrower performed by
Fremont subsequent to the making of the initial Revolving Advance hereunder.

          2.13 LATE REPORTING FEE. Borrower shall pay Fremont a fee in an amount
equal to Fifty Dollars ($50) per document per day for each Business Day any
report, financial statement or schedule required to be delivered to Fremont by
this Agreement is past due.

          2.14 MISCELLANEOUS FEES. Borrower shall pay Fremont its customary fees
for wire transfers (including a premium for early and late transfers), returned
checks, letter of credit guarantees and any other services provided by Fremont
to Borrower that are incidental to this Agreement.  Upon Borrower's request,
Fremont shall provide Borrower with a written schedule of the amounts of all
such miscellaneous fees.

          2.15 MAXIMUM CHARGES. In no event shall interest on the Obligations
exceed the highest lawful rate in effect from time to time.  It is not the
intention of the parties hereto to make an agreement which violates any
applicable state or federal usury laws.  In no event shall Borrower pay or
Fremont accept or charge any interest which, together with any other charges
upon the principal or any portion thereof, exceeds the maximum lawful rate of
interest allowable under any applicable state or federal usury laws.  Should any
provision of this Agreement or any existing or future Notes or Loan Documents
between the parties be construed to require the payment of interest which,
together with any other charges upon the principal or any portion thereof,
exceeds the maximum lawful rate of interest, then any such excess shall be
applied to the remaining principal balance, if any, and the remainder refunded
to Borrower.

          2.16 MONTHLY STATEMENTS. Fremont shall render monthly statements to
Borrower of  all Obligations, including statements of all principal, interest,
fees and Fremont Expenses charged, and such statements shall be conclusively
presumed to be correct and accurate and constitute an account stated between
Borrower and Fremont unless, within thirty (30) days after receipt thereof by
Borrower, Borrower shall deliver to Fremont, by registered or certified mail or
overnight courier service, at Fremont's address stated in SECTION 12, written
objection to Fremont's statement specifying the error or errors, if any,
contained in such statements.

          2.17 PAYMENT MECHANICS. As an administrative convenience to Borrower
to ensure the timely payment of amounts owing by Borrower to Fremont under this
Agreement, Borrower hereby requests Fremont to advance for the account of
Borrower an amount each month sufficient to pay interest accrued on the
principal amount of the Obligations during the immediately preceding month and
all monthly principal installments or other payments due under a Note or other
Loan Document and amounts from  time to time sufficient to pay all fees and
Fremont Expenses owing by Borrower under this Agreement. Borrower authorizes
Fremont, in Fremont's sole discretion, to make a Revolving Advance for
Borrower's account of a sum sufficient each month to pay, on the due date
thereof, all interest accrued on the principal amount of the Obligations during
the immediately preceding month and all monthly principal installments or other
payments due under a Note or other Loan Document and sums from time to time
sufficient to pay, on the due date thereof, all fees and Fremont Expenses owing
by Borrower under this Agreement, and Fremont may apply the proceeds of each
such Revolving Advance to the payment of such interest, installments, fees and
Fremont Expenses. Each such Revolving Advance shall thereafter accrue interest
at the rate then applicable under this Agreement. Fremont, however, shall not be
obligated to make any such Revolving Advance and Borrower acknowledges that
Fremont will be particularly disinclined to do so if an Event of Default or an
Overadvance exists at the time of, or would result from the making of, such
Revolving Advance.

     3.   TERM OF AGREEMENT AND EARLY TERMINATION

          3.1 TERM. This Agreement shall become effective in accordance with
SECTION 14.1 and shall continue in full force and effect for a term ending one
(1) year after the date hereof and shall be deemed automatically renewed for
successive terms of one (1) year thereafter until terminated as of the end of
the initial term or any renewal term (each a TERM) by either party giving the
other written notice at least sixty (60) days prior to the end of the then
current Term.

          3.2 EARLY TERMINATION. Borrower, subject to the payment of the fee
described below, may terminate this Agreement other than at the end of the then
current Term by giving Fremont prior written notice of its intention to effect
an early termination of this Agreement. Fremont may terminate this Agreement at
any time upon or after the occurrence of an Event of Default. In view of the
impracticability and extreme difficulty of ascertaining actual damages and by
mutual agreement of the parties as to a reasonable calculation of Fremont's lost
profits as a result of an early termination of this Agreement, in either of the
instances described in the preceding two sentences, Borrower shall pay to
Fremont, upon the effective date of such early termination and in addition to
all other Obligations, an early termination fee (the EARLY TERMINATION FEE) in
an amount equal to five percent (5.0%) of the Advance Limit. The Early
Termination Fee shall be presumed to be the amount of damages sustained by
Fremont as the result of the early termination and Borrower agrees that it is
reasonable under the

                                        6

<PAGE>

circumstances currently existing. The Early Termination Fee shall be deemed 
included in the Obligations. Notwithstanding anything herein to the contrary, 
if and to the extent the Early Termination Fee constitutes interest under 
applicable law, the Early Termination Fee, when added to all other interest 
contracted for, charged or received under this Agreement or any other Loan 
Documents, shall not exceed, and shall be limited to an amount which 
constitutes, interest at the maximum lawful rate of interest allowable under 
applicable law.

          3.3 EFFECT OF TERMINATION. Upon termination of this Agreement, all of
the Obligations shall be immediately due and payable in full. No termination of
this Agreement shall relieve or discharge Borrower of Borrower's duties,
obligations and covenants hereunder until all of the Obligations have been fully
and indefeasibly paid and satisfied, and Fremont's continuing security interest
in the Collateral shall remain in effect until all of the Obligations have been
fully and indefeasibly paid and satisfied.

     4.   CREATION OF SECURITY INTEREST

          4.1 GRANT OF SECURITY INTEREST. Borrower hereby grants to Fremont a
continuing security interest in all presently existing and hereafter acquired or
arising Collateral in order to secure prompt repayment of any and all
Obligations and in order to secure prompt performance by Borrower of each and
all of its covenants and duties under the Loan Documents. Fremont's security
interest in the Collateral shall attach to all Collateral without further act on
the part of Fremont or Borrower. Other than sales of Inventory to buyers in the
ordinary course of business, Borrower has no authority, express or implied, to
dispose of any item or portion of the Collateral.

          4.2 NEGOTIABLE COLLATERAL. In the event that any Collateral, including
proceeds, is evidenced by or consists of Negotiable Collateral, Borrower shall,
upon the request of Fremont, immediately endorse and assign such Negotiable
Collateral to Fremont and deliver physical possession of such Negotiable
Collateral to Fremont.

          4.3 DELIVERY OF ADDITIONAL DOCUMENTATION REQUIRED. Borrower shall
execute and deliver to Fremont, concurrently with Borrower's execution and
delivery of this Agreement and at any time thereafter at the request of Fremont,
all financing statements, continuation financing statements, fixture filings,
security agreements, chattel mortgages, pledges, assignments, endorsements of
certificates of title, applications for title, affidavits, reports, notices,
schedules of accounts, letters of authority, and all other documents that 
Fremont may reasonably request, in form satisfactory to Fremont, to perfect 
and continue perfected Fremont's security interest in the Collateral and in 
order to fully consummate all of the transactions contemplated hereunder and 
under the other Loan Documents.

          4.4 POWER OF ATTORNEY. Borrower hereby irrevocably designates, 
makes, constitutes and appoints Fremont (and any of Fremont's officers, 
employees or agents designated by Fremont) as Borrower's true and lawful 
attorney-in-fact, and Fremont, or Fremont's agent, may, without notice to 
Borrower and in either Borrower's or Fremont's name, but at the cost and 
expense of Borrower, at such time or times as Fremont in its sole discretion 
may determine: (a) demand payment of the Accounts from the Account Debtors, 
enforce payment of the Accounts by legal proceedings or otherwise, and 
generally exercise all of Borrower's rights and remedies with respect to the 
collection of the Accounts; (b) take control, in any manner, of any item of 
payment or proceeds relating to any Collateral; (c) prepare, file and sign 
Borrower's name to a proof of claim in bankruptcy or similar document against 
any Account Debtor or to any notice of lien, assignment or satisfaction of 
lien or similar document in connection with any of the Collateral; (d) sign 
Borrower's name on any of documents described in SECTION 4.3 or on any other 
similar documents to be executed, recorded or filed in order to perfect or 
continue perfected Fremont's security interest in the Collateral; (e) sign 
Borrower's name on any invoices, bills of lading, freight bills, chattel 
paper, documents, instruments or similar documents or agreements relating to 
the Accounts, Inventory or other Collateral, drafts against Account Debtors, 
schedules and assignments of Accounts, verifications of Accounts and notices 
to Account Debtors; (f) send requests for verification of Accounts; (g) 
endorse Borrower's name on any checks, notes, acceptances, money orders, 
drafts or other items of payment or proceeds relating to any Collateral that 
may come into Fremont's possession and deposit the same to the account of 
Fremont for application to the Obligations; (h) do all other acts and things 
necessary, in Fremont's determination, to fulfill Borrower's obligations 
under this Agreement or any of the other Loan Documents; (i) at any time that 
an Event of Default has occurred and is continuing, notify the post office 
authorities to change the address for delivery of Borrower's mail to an 
address designated by Fremont, to receive and open all mail addressed to 
Borrower, and to retain all mail relating to the Collateral and forward all 
other mail to Borrower; (j) at any time that an Event of Default has occurred 
and is continuing, use the information recorded on or contained in any data 
processing equipment and computer hardware and software relating to the 
Accounts, Inventory, Equipment and any other Collateral and to which Borrower 
has access; (k) at any time that an Event of Default has occurred and is 
continuing, make, settle and adjust all claims under Borrower's policies of 
insurance, make all determinations and decisions with respect to such 
policies of insurance and endorse the name of Borrower on any check, draft, 
instrument or other item of payment for the proceeds of such policies of 
insurance; (l) at any time that an Event of Default has occurred and is 
continuing, sell or assign any of the Accounts and other Collateral upon such 
terms, for such amounts and at such time or times as Fremont deems advisable; 
and (m) at any time that an Event of Default has occurred and is continuing, 
settle, adjust or compromise disputes and claims respecting the Accounts 
directly with Account Debtors, for amounts and upon terms that Fremont 
determines to be reasonable, and, in furtherance thereof, execute and deliver 
any documents and releases that Fremont determines to be necessary. The 
appointment of Fremont as Borrower's attorney-in-fact and each and every one 
of Fremont's rights and powers, being coupled with an interest, is 
irrevocable until all of the Obligations have been fully repaid and performed 
and this Agreement has been terminated.

          4.5 RIGHT TO INSPECT. Fremont, through any of its officers, employees
or agents, shall have the right at any time or times during Borrower's usual
business hours, or during the usual business hours of any third party having
control over any of Borrower's Books, to inspect Borrower's Books in order to
verify the amount or condition of, or any other matter relating to, the
Collateral or Borrower's financial condition. Fremont also shall have the right
at any time or times during Borrower's usual business hours to inspect and
examine the Inventory and the Equipment and to check and test the same as to
quality, quantity, value and condition. If an Event of Default has occurred or
if Fremont reasonably believes that an Event of Default has occurred, Fremont
may conduct any of the inspections referenced in this SECTION 4.5 at any time
without regard to Borrower's or any third party's usual business hours.

                                        7

<PAGE>

     5.   REPRESENTATIONS AND WARRANTIES

          Borrower makes the following representations and warranties to Fremont
and each such representation and warranty shall be deemed to be repeated with
each Revolving Advance made by Fremont and shall be conclusively presumed to
have been relied on by Fremont regardless of any investigation made or
information possessed by Fremont. The following representations and warranties
shall be cumulative and in addition to any and all other representations and
warranties which Borrower shall now or hereafter give, or cause to be given, to
Fremont.

          5.1  NO PRIOR ENCUMBRANCES: SECURITY INTERESTS. Borrower has good and
indefeasible title to the Collateral, free and clear of liens, claims, security
interests or encumbrances, except for those permitted under SECTION 7.2.

          5.2  ACCOUNTS. All of Borrower's Accounts constitute bona fide
existing obligations created by the sale and Delivery of Inventory or the
rendition of services to Account Debtors in the ordinary course of Borrower's
business, and, in the case of Accounts created by the sale and delivery of
Inventory, the Inventory giving rise to such Accounts has been delivered to the
Account Debtor. At the time of the creation of each Eligible Account or the
assignment thereof to Fremont, each such Eligible Account is unconditionally
owed to Borrower without defense, dispute, offset, counterclaim or right of
return or cancellation and Borrower has not received notice of actual or
imminent bankruptcy, insolvency or material impairment of the financial
condition of the Account Debtor regarding such Eligible Account.

          5.3  ELIGIBLE INVENTORY. All Eligible Inventory is of good and
merchantable quality, free from defects.

          5.4  LOCATION OF INVENTORY AND EQUIPMENT. The Inventory and Equipment
are not stored with a bailee, warehouseman, processor or similar party unless
Fremont has consented thereto in writing and are located only at the following
locations: 30152 Aventura, Rancho Santa Margarita; finished goods inventory may,
from time to time, be located at public warehouses for distribution to Account
Debtors.

          5.5  INVENTORY RECORDS. Borrower keeps correct and accurate records
itemizing and describing the kind, type, quality and quantity of the Inventory
and Borrower's cost therefor.

          5.6  LOCATION OF CHIEF EXECUTIVE OFFICE. The chief executive office of
Borrower is located at the address stated in the first paragraph of this
Agreement.

          5.7  DUE INCORPORATION AND QUALIFICATION. Borrower is a corporation
duly organized and existing and in good standing under the laws of the state of
its incorporation and is qualified or licensed to do business in, and is in good
standing in, any state in which the failure to be qualified or licensed and in
good standing could have a material adverse effect on Borrower's business or the
Collateral.

          5.8  FICTITIOUS NAME(S). Borrower is conducting its business at the
present time under the following trade or fictitious name(s): Jukebox, Mama Mia.
Borrower has complied with the fictitious name laws of all jurisdictions in
which compliance is required in connection with its use of such name(s). During
the five (5) years prior to the date of this Agreement, Borrower conducted
business under the following trade or fictitious name(s) in addition to those
stated above:
             -------------------------------------------------------------------

--------------------------------------------------------------------------------

          5.9  PERMITS AND LICENSES. Borrower holds all licenses, permits,
franchises, approvals and consents as are required in the conduct of its
business and the ownership and operation of its properties.

          5.10 DUE AUTHORIZATION; NO CONFLICT. The execution, delivery and
performance of the Loan Documents to which Borrower is a party are within
Borrower's corporate powers, have been duly authorized and are not in conflict
with nor constitute a breach of any provision contained in Borrower's Articles
or Certificate of Incorporation or Bylaws, nor will they create a default under
any material agreement to which Borrower is a party.

          5.11 LITIGATION. There are no actions or proceedings pending by or
against Borrower before any court or administrative agency and Borrower has no
knowledge or notice of any pending, threatened or imminent litigation,
governmental investigations, or claims, complaints, actions or prosecutions
involving Borrower or any guarantor of the Obligations, except for ongoing
collection matters in which Borrower is the plaintiff and such matters as have
been disclosed to Fremont in writing.

          5.12 TAXES. All assessments and taxes, whether real, personal or
otherwise, due or payable by, or imposed, levied or assessed against Borrower or
any of its property or in connection with Borrower's business have been paid in
full prior to delinquency or the expiration of any extension period.

          5.13 NO MATERIAL ADVERSE CHANGE IN FINANCIAL CONDITION. All financial
statements relating to Borrower which have been or may hereafter be delivered by
Borrower to Fremont have been prepared in accordance with GAAP and fairly
present Borrower's financial condition as of the date thereof and Borrower's
results of operations for the period then ended. There has been no material
adverse change in the financial condition of Borrower since the date of the most
recent of such financial statements submitted to Fremont.

          5.14 SOLVENCY. Borrower is able to pay its debts (including trade
debts) as they mature. No transfer of property is being made by Borrower and no
obligation is being incurred by Borrower in connection with the transactions
contemplated by this


                                        8

<PAGE>

Agreement or the other Loan Documents with the intent to hinder, delay or
defraud either present or future creditors of Borrower.

          5.15 ERISA. Neither Borrower, nor any ERISA Affiliate nor any Plan is
or has been in violation of any of the provisions of ERISA, any of the
qualification requirements of IRC Section 401(a), or any of the published
interpretations thereof. No lien upon the assets of Borrower has arisen with
respect to any Plan. No PROHIBITED TRANSACTION within the meaning of ERISA
Section 406 or IRC Section 4975(c) has occurred with respect to any Plan.
Neither Borrower nor any ERISA Affiliate has incurred any withdrawal liability
with respect to any Multiemployer Plan. Borrower and each ERISA Affiliate have
made all contributions required to be made by them to any Plan or Multiemployer
Plan when due. There is no accumulated funding deficiency in any Plan, whether
or not waived.

          5.16 ENVIRONMENTAL LAWS AND HAZARDOUS MATERIALS. Borrower has complied
with all Environmental Laws.  Except as previously disclosed to Fremont in
writing, Borrower has not caused or permitted any Hazardous Materials to be
located, incorporated, generated, stored, manufactured, transported to or from,
released, disposed of or used at, upon, under or within any premises at which
Borrower conducts its business, or in connection with Borrower's business. To
the best of Borrower's knowledge, no prior owner or operator of any premises at
which Borrower conducts its business has caused or permitted any of the above to
occur at, upon, under or within any of such premises.

          5.17 INTELLECTUAL PROPERTY. Borrower does not own or have rights as
licensee in or to any trademarks or patents or have any trademark or patent
applications pending, except as has been disclosed in writing to Fremont.

          5.18 LABOR AND EMPLOYMENT DISPUTES. There are no pending grievances,
disputes or controversies with any union or other organization of Borrower's
employees, or pending threats of strikes or work stoppages, or demands for
collective bargaining by any union or other organization of Borrower's
employees.

     6.   AFFIRMATIVE COVENANTS

          Borrower covenants and agrees that during the term of this Agreement
and until payment in full of the Obligations, and unless Fremont shall otherwise
consent in writing, Borrower shall do all of the following:

          6.1  ACCOUNTING SYSTEM. Borrower at all times shall maintain a
standard and modern system of accounting in accordance with GAAP with ledger and
account cards or computer tapes, disks, printouts and records pertaining to the
Collateral which contain information as may from time to time be requested by
Fremont. Borrower also shall keep proper books of account showing all sales,
claims and allowances on its Inventory.

          6.2  COLLATERAL REPORTS. Borrower shall deliver to Fremont, no later
than the fifteenth day of each month during the term of this Agreement, a
detailed aging of the Accounts, a reconciliation statement and a summary aging,
by vendor, of all accounts payable and any book overdraft. Borrower shall
deliver to Fremont, as Fremont may from time to time require, collection
reports, sales journals, invoices, original delivery receipts, customers'
purchase orders, shipping instructions, bills of lading and other documentation
respecting shipment arrangements. Absent such a request by Fremont, copies of
all such documentation shall be held by Borrower as custodian for Fremont.

          6.3  RETURNS. Returns and allowances, if any, as between Borrower and
its Account Debtors, shall be permitted by Borrower on the same basis and in
accordance with the usual and customary practices of Borrower as they exist at
the time of the execution and delivery of this Agreement. If any Account Debtor
returns any Inventory to Borrower, Borrower shall promptly determine the 
reason for such return and, if Borrower accepts such return, issue a credit 
memorandum (with a copy to be sent to Fremont) in the appropriate amount to 
such Account Debtor. Borrower shall promptly notify Fremont of all returns 
and recoveries and of all disputes and claims.

          6.4  DESIGNATION OF INVENTORY. Borrower shall now and from time to
time hereafter, but not less frequently than bi-weekly, execute and deliver to
Fremont a designation of Eligible Inventory specifying Borrower's cost and the
wholesale market value of such Eligible Inventory, and further specifying such
other information as Fremont may reasonably request.

          6.5  FINANCIAL STATEMENTS, REPORTS, CERTIFICATES. Borrower shall
deliver to Fremont: (a) as soon as available, but in any event within thirty
(30) days after the end of each of Borrower's fiscal quarters during each of
Borrower's fiscal years, a company prepared balance sheet and profit and loss
statement covering Borrower's operations during such period; and (b) as soon as
available, but in any event within ninety (90) days after the end of each of
Borrower's fiscal years, financial statements of Borrower for each such fiscal
year. Reviewed by independent certified public accountants acceptable to
Fremont. Notwithstanding the foregoing, Fremont reserves the right to require
Borrower to provide Fremont with company prepared financial statements on a
monthly (rather than quarterly) basis. All such annual financial statements
shall include a balance sheet and profit and loss statement, together with the
accountants' letter to management. Borrower shall also deliver Borrower's Form
10-Qs, 10-Ks or 8-Ks, and any other filings made by Borrower with the Securities
and Exchange Commission, if any, as soon as the same become available, and any
other report reasonably requested by Fremont relating to the Collateral or the
financial condition of Borrower, including financial projections, and a
certificate signed by the chief financial officer or chief executive officer of
Borrower to the effect that all reports, statements or computer prepared
information of any kind or nature delivered or caused to be delivered to Fremont
under this SECTION 6.5 fairly present the financial condition of Borrower and
that there exists on the date of delivery of such certificate to Fremont no
condition or event which constitutes an Event of Default.


                                        9

<PAGE>

          6.6  LITIGATION. Borrower shall promptly notify Fremont in writing of
any litigation, governmental investigations or criminal prosecutions involving
Borrower, other than collection matters in which Borrower is the plaintiff.

          6.7  TAX RETURNS, RECEIPTS. Borrower shall deliver to Fremont copies
of each of Borrower's federal income tax returns, and any amendments thereto,
within thirty (30) days after the filing thereof with the Internal Revenue
Service. Furthermore, Borrower shall deliver to Fremont, promptly upon request
by Fremont, satisfactory evidence of Borrower's payment of all federal
withholding taxes required to be paid by Borrower.

          6.8  GUARANTOR TAX RETURNS. Borrower shall cause each guarantor of the
Obligations to deliver to Fremont copies of such guarantor's federal income tax
returns within thirty (30) days after the filing thereof with the Internal
Revenue Service.

          6.9  TITLE TO EQUIPMENT. Upon Fremont's request, Borrower shall
immediately deliver to Fremont, properly endorsed, any and all evidences of
ownership of, or certificates of title or applications for title to, any items
of Equipment.

          6.10 MAINTENANCE OF EQUIPMENT. Borrower shall keep and maintain the
Equipment in good operating condition and repair and shall make all necessary
replacements thereto so that the value and operating efficiency thereof shall at
all times be maintained and preserved. Borrower shall not permit any item of
Equipment to become a fixture to real estate or an accession to other property,
and the Equipment is now and shall at all times remain personal property.

          6.11 TAXES. All assessments and taxes, whether real, personal or
otherwise, due or payable by, or imposed, levied or assessed against Borrower or
any of its property or in connection with Borrower's business shall be paid in
full prior to delinquency or the expiration of any extension period. Borrower
shall make due and timely payment or deposit of all federal, state and local
taxes, assessments or contributions required of it by law and will execute and
deliver to Fremont, on demand, appropriate certificates attesting to the payment
or deposit thereof. Borrower shall make timely payment or deposit of all tax
payments and withholding taxes required of it by applicable laws, including
those laws concerning F.I.C.A., F.U.T.A., state disability and local, state and
federal income taxes, and shall, upon request, furnish Fremont with proof
satisfactory to Fremont indicating that Borrower has made such payments or
deposits.

          6.12 INSURANCE. Borrower, at its expense, shall keep and maintain the
Collateral insured against all risk of loss or damage from fire, theft,
vandalism, malicious mischief, explosion, sprinklers and all other hazards and
risks of physical damage included within the meaning of the term "extended
coverage" in such amounts as are ordinarily insured against by other similar
businesses. Borrower shall also keep and maintain comprehensive general public
liability insurance and property damage insurance, and insurance against loss
from business interruption, insuring against all risks relating to or arising
from Borrower's ownership and use of the Collateral and Borrower's other assets
and the operation of Borrower's business. All such policies of insurance shall
be in such form, with such companies and in such amounts as may be satisfactory
to Fremont, Borrower shall deliver to Fremont certified copies of such policies
of insurance and evidence of the payments of all premiums therefor. All such
policies of insurance (except those of public liability and property damage)
shall contain a Lender's Loss Payable endorsement in a form satisfactory to
Fremont, naming Fremont as sole loss payee thereof, and shall contain a waiver
of warranties. All proceeds payable under any such policy shall be payable to
Fremont to be applied to the Obligations.

          6.13 NO OFFSETS OR COUNTERCLAIMS. All payments hereunder and under the
other Loan Documents made by or on behalf of Borrower shall be made without
offset or counterclaim, and Borrower hereby waives any right to offset, against
the repayment of the Obligations, any claims it may have against Fremont.

          6.14 FREMONT EXPENSES. Borrower shall immediately and without demand
reimburse Fremont for all sums expended by Fremont which constitute Fremont
Expenses and Borrower hereby authorizes and approves all Revolving Advances and
payments by Fremont for items constituting Fremont Expenses. Borrower
acknowledges that Fremont Expenses include, among other things, (a) Fremont's
reasonable attorneys fees and expenses incurred in defending or otherwise
representing Fremont concerning the Loan Documents or the Obligations and (b)
charges resulting from the dishonor of checks. Since Fremont Expenses are a part
of the Obligations which are secured by the Collateral, Fremont shall not be
required to discharge any lien or terminate any security interest in the
Collateral unless and until (y) Borrower and Fremont execute a mutual general
release of liability and indemnification in favor of and acceptable to 
Fremont and (z) to the extent another financial institution refinances the 
Obligations,such financial institution delivers an agreement, acceptable to 
Fremont, to indemnify Fremont for loss arising from checks delivered to 
Fremont for collection and payment of the Obligations which are returned for 
non-payment or for any other reason.

          6.15 COMPLIANCE WITH LAW. Borrower shall comply with the requirements
of all applicable laws, rules, regulations and orders of governmental
authorities relating to Borrower and the conduct of Borrower's business,
including the Fair Labor Standards Act and the Americans with Disabilities Act.

          6.16 LOCATION OF INVENTORY AND EQUIPMENT. Borrower shall keep the
Inventory and Equipment only at the locations identified in SECTION 5.5.


                                       10

<PAGE>

          6.17 ENVIRONMENTAL LAWS AND HAZARDOUS MATERIALS. Borrower shall not
permit any lien under any Environmental Law to be filed against any of the
Collateral or any of Borrower's real property in which Fremont holds a lien, and
will promptly notify Fremont of any proceeding, inquiry or claim relating to any
alleged violation of any Environmental Law, or any alleged loss, damage or
injury resulting from any Hazardous Material. Fremont shall have the right to
join and participate in, as a party if it so elects, any legal or administrative
proceeding initiated against Borrower or any guarantor of the Obligations with
respect to any Hazardous Material or in connection with any Environmental Law.

     7.   NEGATIVE COVENANTS

          Borrower covenants and agrees that during the term of this Agreement
and until payment in full of the Obligations, Borrower will not do any of the
following without Fremont's prior written consent:

          7.1  INDEBTEDNESS. Create, incur, assume, permit or otherwise become
liable with respect to any indebtedness outside of the ordinary and usual course
of Borrower's business, except (a) indebtedness set forth in Borrower's latest
financial statements submitted to Fremont prior to the date of this Agreement
and renewals or extensions of such indebtedness and (b) the Obligations.

          7.2  LIENS. Create, incur, assume or permit to exist any security
interest, lien, pledge, mortgage or encumbrance on any Collateral or on any of
Borrower's real property in which Fremont holds a lien, except (a) the security
interests granted to Fremont by Borrower, (b) the security interests disclosed
in the UCC searches obtained by Fremont prior to the funding of the initial
Revolving Advance hereunder and (c) any security interest which Borrower has
disclosed in writing to Fremont and to which Fremont has given its prior written
consent.

          7.3  EXTRAORDINARY TRANSACTIONS. Enter into any transaction not in the
ordinary and usual course of Borrower's business, including the sale, lease or
other disposition of, whether by sale or otherwise, any of Borrower's assets
other than sales of Inventory in the ordinary and usual course of Borrower's
business; or make any advance, loan or capital contribution to any Person except
in the ordinary and usual course of Borrower's business.

          7.4  CHANGE NAME. Change Borrower's name, business structure or
identity, or add any new fictitious name.

          7.5  FUNDAMENTAL CHANGES. Enter into any acquisition, merger,
consolidation, reorganization or recapitalization, or reclassify its capital
stock, or liquidate, wind up or dissolve itself (or suffer any liquidation or
dissolution), or acquire by purchase or otherwise all or substantially all of
the assets, stock or other beneficial ownership interest of any other Person.

          7.6  GUARANTY. Guaranty or otherwise become in any way liable with
respect to the obligations of any third party except by endorsement of
instruments or items of payment for deposit to the account of Borrower for
negotiation and delivery to Fremont.

          7.7  RESTRUCTURE. Make any change in Borrower's capital structure or
in the principal nature of Borrower's business operations.

          7.8  PREPAYMENTS. Prepay any indebtedness owing to any third party.

          7.9  CHANGE OF OWNERSHIP. Cause, permit or suffer any transfer,
whether direct or indirect, of the ownership of ten percent (10%) or more of
Borrower's outstanding capital stock or other beneficial ownership interest in
any single transaction or series of transactions.

          7.10 COMPENSATION. Pay total compensation, including salaries,
withdrawals, fees, bonuses, commissions, drawing accounts, management fees or
other payments, whether directly or indirectly, in money or otherwise, during
any fiscal year to all of Borrower's executives, officers, shareholders,
affiliates, and directors (or any relatives thereof) in an aggregate amount in
excess of one hundred twenty percent (120%)  of those earned in the prior fiscal
year or to the extent positive cash flow exists, so long as debts are
generally being paid when due, Borrower is not in default and positive
availability exists under the credit facility.

          7.11 LOANS TO INSIDERS. Make any loans, advances or extensions of
credit to any officer, director, executive, employee or shareholder of Borrower,
or any relative of any of the foregoing, or to any entity which is a subsidiary
of, related to, affiliated with or has common shareholders, officers or
directors with Borrower, which when aggregated with all other loans, advances or
extensions of credit to any or all of the above Persons at any time outstanding
during the term of this Agreement, exceeds  Twenty-Five Thousand Dollars
($25,000.00).

          7.12 CAPITAL EXPENDITURES. Make any capital expenditure, or any
commitment therefor, in excess of One Hundred Thousand Dollars ($100,000.00 )
for any individual transaction or where the aggregate amount of such capital
expenditures, made or committed for in any fiscal year, is in excess of Three
Hundred Thousand Dollars ($300,000.00).

          7.13 CONSIGNMENTS. Consign any Inventory; or sell any Inventory on
bill and hold, sale on approval or other conditional terms of sale.


                                       11

<PAGE>

          7.14 DISTRIBUTIONS. Make any distribution or declare or pay any
dividends (in cash or in stock) on, or purchase, acquire, redeem or retire any
of Borrower's capital stock, of any class, whether now or hereafter outstanding.

          7.15 ACCOUNTING METHODS. Modify or change its method of accounting or
enter into, modify or terminate any agreement currently existing or at any time
hereafter entered into with any third party accounting firm or service bureau
for the preparation or storage of Borrower's accounting records without said
accounting firm or service bureau agreeing to provide Fremont information
regarding the Collateral or Borrower's financial condition. Borrower waives the
right to assert a confidential relationship, if any, it may have with any
accounting firm or service bureau in connection with any information requested
by Fremont pursuant to or in accordance with this Agreement, and agrees that
Fremont may contact directly any such accounting firm or service bureau in order
to obtain such information.

          7.16 SUSPENSION. Suspend or go out of business.

          7.17 LOCATION OF CHIEF EXECUTIVE OFFICE. Relocate its chief executive
office to a new location unless Fremont is given thirty (30) days prior written
notice thereof.

     8.   EVENTS OF DEFAULT

          The occurrence of any one or more of the following events shall
constitute an "Event of Default" under this Agreement:

          8.1  FAILURE TO PAY. Borrower fails to pay when due and payable, or
when declared due and payable, any portion of the Obligations (whether
principal, interest, fees and charges due Fremont, reimbursement of Fremont
Expenses, or other amounts constituting Obligations);

          8.2  FAILURE TO PERFORM. Borrower fails or neglects to perform, keep
or observe any term, provision, condition, representation, warranty, covenant or
agreement contained in this Agreement, in any of the other Loan Documents or in
any other present or future agreement between Borrower and Fremont;

          8.3  MISREPRESENTATION. Any misstatement or misrepresentation now or
hereafter exists in any warrant, representation, statement or report made to
Fremont by Borrower or any officer, employee, agent or director of Borrower, or
if any such warranty or representation is withdrawn by any of them;

          8.4  MISREPRESENTATION OF COLLATERAL. Any writing, document, aging,
certificate or other evidence of the Eligible Accounts or Eligible Inventory
shall be incomplete, incorrect or misleading at the time the same is furnished
to Fremont; or Borrower shall fail to immediately remit to Fremont proceeds of
Accounts and other Collateral, pursuant to the terms of SECTION 2.6;

          8.5  MATERIAL ADVERSE CHANGE. There is a material adverse change in
Borrower's business or financial condition;

          8.6  MATERIAL IMPAIRMENT. There is a material impairment of the
prospect of repayment of any portion of the Obligations owing to Fremont or a
material impairment of the value or priority of Fremont's security interests in
the Collateral;

          8.7  LEVY OR ATTACHMENT. Any material portion of Borrower's assets is
attached, seized, subjected to a writ or distress warrant, or is levied upon, or
comes into the possession of any judicial officer;

          8.8  INSOLVENCY BY BORROWER. An Insolvency Proceeding is commenced by
Borrower;

          8.9  INSOLVENCY AGAINST BORROWER. An Insolvency Proceeding is
commenced against Borrower;

          8.10 INJUNCTION AGAINST BORROWER. Borrower is enjoined, restrained or
in any way prevented by court order from continuing to conduct all or any
material  part of its business affairs;

          8.11 GOVERNMENT LIEN. A notice of lien, levy or assessment is filed of
record with respect to any of Borrower's assets by the United States government,
or any department, agency or instrumentality thereof, or by any state, county,
municipal or other governmental agency, or any taxes or debts owing at any time
hereafter to any one or more of such entities becomes a lien, whether choate or
otherwise, upon any of Borrower's assets and the same is not paid on the payment
date thereof;

          8.12 JUDGMENT. A judgment is entered against Borrower;

          8.13 CROSS DEFAULT TO MATERIAL AGREEMENTS. There is a default in any
material agreement to which Borrower is a party with one or more third parties
or by which Borrower or Borrower's property or assets are bound;

          8.14 SUBORDINATED DEBT PAYMENTS. Borrower makes any payment on account
of indebtedness that has been contractually subordinated in right of payment 
to the payment of the Obligations, except to the extent such payment is 
permitted by the terms of the subordination agreement applicable to such 
indebtedness;


                                       12

<PAGE>

          8.15 LOSS OF GUARANTOR. Any guarantor of the Obligations dies,
terminates his/her/its guaranty, becomes the subject of an Insolvency
Proceeding, or contests his/her/its obligations under such a guaranty; or if any
such guaranty of the Obligations ceases to be valid or enforceable for any
reason;

          8.16 ERISA VIOLATION. A PROHIBITED TRANSACTION within the meaning of
ERISA Section 406 or IRC Section 4975(c) shall occur with respect to a Plan
which could have a material adverse effect on the financial condition of
Borrower; any lien upon the assets of Borrower in connection with any Plan shall
arise; Borrower or any ERISA Affiliate shall completely or partially withdraw
from a Multiemployer Plan and such withdrawal could, in the opinion of Fremont,
have a material adverse effect on the financial condition of Borrower; Borrower
or any of its ERISA Affiliates shall fail to make full payment when due of all
amounts which Borrower or any of its ERISA Affiliates may be required to pay to
any Plan or any Multiemployer Plan as one or more contributions thereto;
Borrower or any of its ERISA Affiliates creates or permits the creation of any
accumulated funding deficiency, whether or not waived; the voluntary or
involuntary termination of any Plan which termination could, in the opinion of
Fremont, have a material adverse effect on the financial condition of Borrower;
or Borrower shall fail to notify Fremont promptly and in any event within ten
(10) days of the occurrence of any event which constitutes an Event of Default
under this clause or would constitute such an Event of Default upon the exercise
of Fremont's judgment; or

          8.17 CRIMINAL PROCEEDINGS. Criminal proceedings are instituted against
Borrower, any member of Borrower's senior management or any guarantor of the
Obligations that could result in the forfeiture or loss of Collateral or a
material impairment of the financial condition of Borrower or any guarantor of
the Obligations.

          Notwithstanding anything contained in this SECTION 8 to the contrary,
Fremont shall refrain from exercising its rights and remedies and an Event of
Default shall not be deemed to have occurred by reason of the occurrence of any
of the events set forth in SECTIONS 8.7, 8.9, 8.11 or 8.12 of this Agreement if,
within ten (10) days from the date thereof, the same is released, discharged,
dismissed, bonded against or satisfied; PROVIDED, HOWEVER, Fremont shall not be
obligated to make Revolving Advances to Borrower during such period.

     9.   FREMONT'S RIGHTS AND REMEDIES

          9.1  RIGHTS AND REMEDIES. Upon the occurrence of an Event of Default.
Fremont may, at its election, without notice of its election and without demand,
do any one or more of the following, all of which are authorized by Borrower:

               (a)  Declare all Obligations, whether evidenced by this
Agreement, any of the other Loan Documents or otherwise, immediately due and
payable in full;

               (b)  Cease advancing money or extending credit to or for the
benefit of Borrower under this Agreement, any of the other Loan Documents or any
other agreement between Borrower and Fremont;

               (c)  Terminate this Agreement and any of the other Loan Documents
as to any future liability or obligation of Fremont, but without affecting
Fremont's rights and security interest in the Collateral and without affecting
the Obligations;

               (d)  Settle or adjust disputes and claims directly with Account
Debtors for amounts and upon terms which Fremont considers advisable and, in
such cases. Fremont will credit Borrower's loan account with only the net
amounts received by Fremont in payment of such disputed Accounts, after
deducting all Fremont Expenses incurred or expended in connection therewith;

               (e)  Cause Borrower to hold all returned Inventory in trust for
Fremont, segregate all returned Inventory from all other property of Borrower or
in Borrower's possession and conspicuously label said returned Inventory as the
property of Fremont;

               (f)  Without notice to or demand upon Borrower or any guarantor,
make such payments and do such acts as Fremont considers necessary or reasonable
to protect its security interest in the Collateral. Borrower agrees to assemble
the Collateral if Fremont so requires and to deliver or make the Collateral
available to Fremont at a place designated by Fremont. Borrower authorizes
Fremont to enter any premises where the Collateral is located, to take and
maintain possession of the Collateral, or any part of it, and to pay, purchase,
contest or compromise any encumbrance, charge or lien that in Fremont's
determination appears to be prior or superior to its security interest and to
pay all expenses incurred in connection therewith. With respect to any of
Borrower's owned premises, Borrower hereby grants Fremont a license to enter
into possession of such premises and to occupy the same, without charge, in
order to exercise any of Fremont's rights or remedies provided herein, at law,
in equity, or otherwise;

               (g)  Without notice to Borrower (such notice being expressly
waived) and without constituting a retention of any collateral in satisfaction
of an obligation (within the meaning of Section 9505 of the Code), set off and
apply to the Obligations any and all (i) balances and deposits of Borrower held
by Fremont (including any amounts received in a lockbox or blocked account), or
(ii) indebtedness at any time owing to or for the credit or the account of
Borrower held by Fremont;

               (h)  Hold, as cash collateral, any and all balances and deposits
of Borrower held by Fremont (including any amounts received in a lockbox or
blocked account) to secure the Obligations;


                                       13

<PAGE>

               (i)  Ship, reclaim, recover, store, finish, maintain, repair,
prepare for sale, advertise for sale and sell (in the manner provided for 
herein) the Collateral, Fremont is hereby granted a license or other right to 
use, without charge, Borrower's labels, patents, copyrights, rights of use of 
any name, trade secrets, trade names, trademarks, service marks, and 
advertising matter, or any property of a similar nature, as it pertains to 
the Collateral, in completing production of, advertising for sale and selling 
any Collateral. Borrower's rights under all licenses and all franchise 
agreements shall inure to Fremont's benefit;

               (j)  Sell the Collateral at either a public or private sale, or
both, by way of one or more contracts or transactions, for cash or on terms, in
such manner and at such places (including Borrower's premises) as Fremont
determines is commercially reasonable. It is not necessary that the Collateral
be present at any such sale;

               (k)  Fremont shall give notice of the disposition of the
Collateral as follows:

                    (1)  Fremont shall give the Borrower and each holder of a
security interest in the Collateral who has filed with Fremont a written request
for notice, a notice in writing of the time and place of public sale or, if the
sale is a private sale or some other disposition other than a public sale is to
be made, then the time on or after which the private sale or other disposition
is to be made;

                    (2)  The notice shall be personally delivered or mailed,
postage prepaid, to Borrower as provided in SECTION 12, at least five (5)
calendar days before the date fixed for the sale, or at least five (5) calendar
days before the date on or after which the private sale or other disposition is
to be made, unless the Collateral is perishable or threatens to decline speedily
in value. Notice to Persons other than Borrower claiming an interest in the
Collateral shall be sent to such addresses as they have furnished to Fremont;

                    (3)  If the sale is to be a public sale, Fremont shall also
give notice of the time and place by publishing a notice one time at least five
(5) calendar days before the date of the sale in a newspaper of general
circulation in the county in which the sale is to be held;

               (l)  Fremont may credit bid and purchase at any public sale;

               (m)  Any deficiency that exists after disposition of the
Collateral as provided above shall be paid immediately by Borrower. Any excess
will be remitted without interest by Fremont to the party or parties legally
entitled to such excess; and

               (n)  In addition to the foregoing, Fremont shall have all rights
and remedies provided by law and any rights and remedies contained in any 
other Loan Documents. All such rights and remedies shall be cumulative.

          9.2  NO WAIVER. No delay on the part of Fremont in exercising any
right, power or privilege under this Agreement shall operate as a waiver, nor
shall any single or partial exercise of any right, power or privilege under this
Agreement or otherwise, preclude other or further exercise of the right, power
or privilege or the exercise of any other right, power or privilege.

     10.  TAXES AND EXPENSES REGARDING THE COLLATERAL

          If Borrower fails to pay any monies (whether taxes, assessments,
insurance premiums or otherwise) due to third parties regarding the Collateral,
or fails to make any deposits or furnish any required proof of payment or
deposit, or fails to perform any of Borrower's other covenants under the terms
of this Agreement, then in its discretion and without prior notice to Borrower,
Fremont may do any or all of the following: (a) make any payment which Borrower
has failed to pay or any part thereof: (b) set up such reserves in Borrower's
loan account as Fremont deems necessary to protect Fremont from the exposure
created by such failure: (c) obtain and maintain insurance policies of the type
described in SECTION 6.12 and take any action with respect to such policies as
Fremont deems prudent; or (d) take any other action deemed necessary by Fremont
to preserve and protect its interests and rights under this Agreement. Any
payments made by Fremont shall not constitute an agreement by Fremont to make
similar payments in the future or a waiver by Fremont of any Event of Default
under this Agreement. Fremont need not inquire as to, or contest the validity
of, any such expense, tax, security interest, encumbrance or lien and the
receipt of notice for the payment thereof shall be conclusive evidence that the
same was validly due and owing.

     11.  WAIVERS AND INDEMNIFICATIONS

          11.1 WAIVERS. Borrower waives demand, protest, notice of protest,
notice of default or dishonor, notice of payment and nonpayment, notice of any
default, notice of nonpayment at maturity, notice of intention to accelerate and
notice of acceleration, so that Fremont may exercise any and all rights and
remedies under the Loan Agreement or any other Loan Documents, or as otherwise
provided at law or in equity, immediately upon the occurrence of any Event of
Default, without any further notice, grace or opportunity to cure whatsoever.
Borrower further waives notice prior to Fremont's taking possession or control
of the Collateral, any bond or security which might be required by any court
prior to allowing Fremont to exercise any of Fremont's remedies, and the benefit
of all valuation, appraisement and exemption laws. Borrower agrees that Fremont
may compromise, settle or release without notice to Borrower any accounts,
documents, instruments, chattel paper or guaranties at any time held by Fremont
on which Borrower may in any way be liable.

          11.2 NO MARSHALING. 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 Fremont or to require that Fremont first resort to some
or any portion of the Collateral before foreclosing upon, selling or otherwise
realizing on any other portion thereof.


                                       14

<PAGE>

          11.3 FREMONT LIABILITY FOR COLLATERAL. So long as Fremont complies
with its obligations, if any, under Section 9207 of the Code. Fremont shall not
in any way or manner be liable or responsible for: (a) the safekeeping of the
Collateral; (b) any loss or damages thereto occurring or arising in any manner
or fashion from any cause: (c) any diminution in the value thereof; or (d) any
act or default any carrier, warehouseman, bailee, forwarding agency or other
Person. All risk of loss, damage or destruction of the Collateral shall be borne
by Borrower.

          11.4 INDEMNIFICATION. Borrower shall defend, indemnify and hold
harmless Fremont, its directors, officers, agents, employees, participants 
and assigns, from and against any and all claims, suits, actions, causes of 
action, liabilities, damages, losses, obligations, judgments and expenses, 
including attorneys fees and costs, of any nature whatsoever, in any way 
relating to or arising from the transactions contemplated by this Agreement 
or any other Loan Document (including those relating to or arising from any 
alleged or actual violation of any Environmental Law, or any loss, damage or 
injury resulting from any Hazardous Material; PROVIDED that the foregoing 
indemnification shall not extend to liabilities, damages, losses, 
obligations, judgments and expenses arising from the gross negligence or 
willful misconduct of Fremont.  This indemnification provision shall survive 
the termination of this Agreement.

     12.  NOTICES

          Unless otherwise provided in this Agreement, all notices or demands by
any party relating to this Agreement, the Loan Documents or any other agreement
entered into in connection herewith shall be in writing and (except for
financial statements and other informational documents which may be sent by
first-class mail, postage prepaid) shall be personally delivered or sent by
registered or certified mail, postage prepaid, return receipt requested, or by
receipted overnight delivery service to Borrower or to Fremont, as the case may
be, at their addresses set forth below:

     If to Borrower:     International Food and Beverage, Inc.
                    ------------------------------------------------------
                         30152 Aventura
                    ------------------------------------------------------
                         Rancho Santa Margarita, CA  92688
                    ------------------------------------------------------
                    Attn: Michael W. Hogarty
                         -------------------------------------------------

     If to Fremont:      FREMONT BUSINESS CREDIT
                         A DIVISION OF FREMONT FINANCIAL CORPORATION
                         2020 Santa Monica Boulevard, Suite 500
                         Santa Monica, California 90404-2023
                         Attn: Division Credit Manager

          The parties hereto may change the address at which they are to receive
notices hereunder by notice in writing in the foregoing manner given to the
other. All notices or demands sent in accordance with this SECTION 12, other
than notices by Fremont in connection with Sections 9504 and 9505 of the Code,
shall be deemed received on the earlier of the date of actual receipt or three
(3) calendar days after the deposit thereof in the mail. Borrower acknowledges
and agrees that notices sent by Fremont in connection with Sections 9504 or 9505
of the Code shall be deemed sent when deposited in the mail or otherwise sent by
Fremont in accordance with the delivery methods set forth above.

     13.  DESTRUCTION OF BORROWER'S DOCUMENTS

          All documents, schedules, invoices, agings or other papers delivered
to Fremont may be destroyed or otherwise disposed of by Fremont four (4) months
after they are delivered to or received by Fremont unless Borrower requests, in
writing, the return of said documents, schedules, invoices, agings or other
papers and makes arrangements, at Borrower's expense, for their return.

     14.  GENERAL PROVISIONS

          14.1 EFFECTIVENESS. This Agreement and the other Loan Documents shall
be binding and deemed effective when executed by Borrower and Fremont.

          14.2 SUCCESSORS AND ASSIGNS. This Agreement shall bind and inure to
the benefit of the respective successors and assigns of each of the parties;
PROVIDED, HOWEVER, that Borrower may not assign this Agreement or any rights
hereunder without Fremont's prior written consent and any prohibited assignment
shall be absolutely void. No consent to an assignment by Fremont shall release
Borrower from its Obligations. Fremont may assign this Agreement and its rights
and duties hereunder. Fremont reserves the right to sell, assign, transfer,
negotiate or grant participations in all or any part of, or any interest in
Fremont's rights and benefits hereunder. In connection therewith, Fremont may
disclose all documents and information which Fremont now or hereafter may have
relating to Borrower or Borrower's business. Borrower expressly consents to the
assignment by Fremont to its wholly owned subsidiary, Fremont Funding Inc., of
certain of Fremont's rights hereunder and under the other Loan Documents,
including the beneficial interest in loans made by Fremont, and the subsequent
assignment by Fremont Funding Inc. to the Fremont Small Business Loan Master
Trust of such rights.


                                       15

<PAGE>

          14.3 SECTION HEADINGS. Headings and numbers have been set forth, 
herein for convenience only. Unless the contrary is compelled by the context, 
everything contained in each paragraph applies equally to this entire 
Agreement.

          14.4 INTERPRETATION. Neither this Agreement nor any uncertainty or
ambiguity herein shall be construed or resolved against Fremont or Borrower,
whether under any rule of construction or otherwise. On the contrary, this
Agreement has been reviewed by all parties and shall be construed and
interpreted according to the ordinary meaning of the words used so as to fairly
accomplish the purposes and intentions of all parties hereto.

          14.5 SEVERABILITY OF PROVISIONS. Each provision of this Agreement
shall be severable from every other provision of this Agreement for the purpose
of determining the legal enforceability of any specific provision.

          14.6 AMENDMENTS IN WRITING. Neither this Agreement nor any provision
hereof shall be amended, modified waived, or terminated orally or by course of
conduct or pattern of dealing, but only by a written agreement signed by an
authorized officer of Fremont.  Any purported amendment, modification, waiver or
termination of this Agreement or any provision hereof that is not in writing and
signed by an authorized officer of Fremont shall be void and of no effect.

          14.7 INTEGRATION. This Agreement, together with the other Loan
Documents, reflects the entire agreement between the parties with respect to the
subject matter hereof. This Agreement, together with the other Loan Documents,
supersedes all prior agreements, understandings and negotiations, if any, 
which,
are merged into this Agreement and the other Loan Documents.

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

          14.9 REVIVAL AND REINSTATEMENT OF OBLIGATIONS. If the incurrence or
payment of the Obligations by Borrower or any guarantor of the Obligations or
the transfer by either or both of such parties to Fremont of any property of
either or both of such parties should for any reason subsequently be declared to
be void or voidable under any state or federal law relating to creditors'
rights, including provisions of the Bankruptcy Code relating to fraudulent
conveyances, preferences and other voidable or recoverable payments of money or
transfers of property (a VOIDABLE TRANSFER), and if Fremont is required to
repay or restore, in whole or in part, any such Voidable Transfer, or elects to
do so upon the reasonable advice of its counsel, then, as to any such Voidable
Transfer. or the amount thereof that Fremont is required or elects to repay or
restore, and as to all reasonable costs, expenses and attorneys fees of Fremont
related thereto, the liability of Borrower or such guarantor automatically shall
be revived, reinstated and restored and shall exist as though such Voidable
Transfer had never been made.

          14.10 CONSULTATION WITH COUNSEL. Borrower and Fremont acknowledge that
they have been given the opportunity to consult with counsel and other advisors
of their choice prior to entering into this Agreement.

          14.11 LIMITATION OF LIABILITY. No claim may be made by Borrower or any
other Person against Fremont or the officers directors, employees or agents of
Fremont for any special, indirect, punitive or consequential damages in respect
of any claim for breach of contract or any other theory of liability arising out
of or related to the transactions contemplated by this Agreement, or any act,
omission or event occurring in connection therewith, and Borrower hereby waives,
releases and agrees not to sue upon any claim for any such damages.

          14.12 TELEFACSIMILE EXECUTION. Delivery of an executed counterpart of
this Agreement or any other Loan Document by telefacsimile transmission shall be
equally as effective as delivery of an executed hard copy of the same. Any party
delivering an executed counterpart of this Agreement or any other Loan Document
by telefacsimile transmission shall also deliver an executed hard copy of the
same, but the failure by such party to deliver an executed hard copy shall not
affect the validity, enforceability and binding effect of this Agreement or such
other Loan Document.

          14.13 FINANCE LENDER LICENSE. Fremont is licensed as a Finance Lender
by the California Department of Corporations file number 603 2362.

                  [Remainder of Page Left Blank Intentionally]


                                       16

<PAGE>

     15.  CHOICE OF LAW AND VENUE

          THE VALIDITY OF THIS AGREEMENT, ITS CONSTRUCTION, INTERPRETATION, AND
ENFORCEMENT AND THE RIGHTS OF THE PARTIES HERETO SHALL BE DETERMINED UNDER 
GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF 
CALIFORNIA; PROVIDED, HOWEVER, THAT THE LAWS OF THE STATE IN WHICH THE
COLLATERAL IS LOCATED SHALL GOVERN WITH RESPECT TO (A) THE CREATION OF LIENS ON
COLLATERAL LOCATED IN SUCH STATE AND (B) THE METHOD, MANNER AND PROCEDURE FOR
FORECLOSURE OF FREMONT'S LIENS UPON ANY PORTION OF THE COLLATERAL LOCATED IN
SUCH STATE AND THE ENFORCEMENT IN SUCH STATE OF FREMONT'S OTHER REMEDIES WITH
RESPECT TO THE COLLATERAL LOCATED IN SUCH STATE.

          THE PARTIES AGREE THAT ALL ACTIONS OR PROCEEDINGS ARISING IN 
CONNECTION WITH THIS AGREEMENT SHALL BE TRIED AND LITIGATED ONLY IN THE STATE 
COURTS LOCATED IN THE COUNTY OF LOS ANGELES STATE OF CALIFORNIA, THE FEDERAL 
COURTS WHOSE VENUE INCLUDES THE COUNTY OF LOS ANGELES, STATE OF CALIFORNIA,
OR, AT THE SOLE OPTION OF FREMONT, IN ANY OTHER COURT IN WHICH FREMONT SHALL 
INITIATE LEGAL OR EQUITABLE PROCEEDINGS AND WHICH HAS SUBJECT MATTER 
JURISDICTION OVER THE MATTER IN CONTROVERSY THE PARTIES EXPRESSLY SUBMIT AND 
CONSENT IN ADVANCE TO SUCH JURISDICTION IN ANY ACTION OR PROCEEDING COMMENCED 
IN ANY SUCH COURT, AND THE PARTIES HEREBY WAIVE ANY OBJECTION WHICH EITHER 
MAY HAVE BASED UPON LACK OF PERSONAL JURISDICTION AVID HEREBY CONSENT TO THE 
GRANTING OF SUCH LEGAL OR EQUITABLE RELIEF AS IS DEEMED APPROPRIATE BY ANY 
SUCH COURT. FURTHERMORE, BORROWER AVID FREMONT EACH WAIVES TO THE EXTENT 
PERMITTED UNDER APPLICABLE LAW, ANY RIGHT EACH MAY HAVE TO ASSERT THE 
DOCTRINE OF "FORUM NON CONVENIENS" OR TO OBJECT TO VENUE TO THE EXTENT ANY 
PROCEEDING IS BROUGHT IN ACCORDANCE WITH THIS SECTION 15.

     16.  WAIVER OF JURY TRIAL

          BORROWER AND FREMONT HEREBY WAIVE THEIR RESPECTIVE RIGHTS TO A JURY
TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARlSING OUT OF THIS
AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS OR ANY OF THE TRANSACTIONS
CONTEMPLATED HEREIN OR THEREIN, INCLUDING CONTRACT CLAIMS TORT CLAIMS, BREACH OF
DUTY CLAIMS AND ALL OTHER COMMON LAW OR STATUTORY CLAIMS. BORROWER AND FREMONT
REPRESENT THAT EACH HAS REVIEWED THIS WAIVER AND EACH KNOWINGLY AND VOLUNTARILY
WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL. IN THE
EVENT OF LITIGATION, A COPY OF THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT
TO A TRIAL BY THE COURT.

          IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be executed at Fremont's place of business Santa Monica, California.

                                   BORROWER:

                                        INTERNATIONAL FOOD AND BEVERAGE, INC.
                                   -------------------------------------------
                                   a  Delaware          corporation
                                      -----------------

                                   Signed By: /s/ Michael W. Hogarty
                                              ----------------------------------
                                   Print Name: Michael W. Hogarty
                                              ----------------------------------
                                   Title/Capacity: President
                                                  ------------------------------

                                   FREMONT BUSINESS CREDIT,
                                   A DIVISION OF FREMONT FINANCIAL CORPORATION,
                                   a California corporation

                                   Signed By: /s/ Jeffrey Lizar
                                              ----------------------------------
                                   Print Name: Jeffrey Lizar
                                              ----------------------------------
                                   Title/Capacity: Vice President
                                                  ------------------------------



                                       17

<PAGE>

            CONDITIONS PRECEDENT RIDER TO LOAN AND SECURITY AGREEMENT
                                     BETWEEN
                             FREMONT BUSINESS CREDIT
                   A DIVISION OF FREMONT FINANCIAL CORPORATION
                                       AND
                      INTERNATIONAL FOOD AND BEVERAGE, INC.

     This CONDITIONS PRECEDENT RIDER TO LOAN AND SECURITY AGREEMENT (hereinafter
referred to as this "Rider") dated this 15th day of March, 1996, is hereby 
made a part of and incorporated into that certain Loan and Security Agreement 
(hereinafter referred to, together with all supplements and riders thereto 
and amendments thereof, as the "Loan Agreement") dated the date hereof 
between FREMONT BUSINESS CREDIT, A DIVISION OF FREMONT FINANCIAL CORPORATION, 
a California-corporation (hereinafter referred to as "Fremont"), and

International Food and Beverage. Inc., a Delaware corporation (hereinafter
referred to as "Borrower").

     1.   All capitalized terms contained in this Rider, unless otherwise
defined herein, shall have the meanings ascribed to such terms in the Loan
Agreement.

     2.   As used herein, the term "Guarantor" shall refer to Michael W.
Hogarty.

     3.   As conditions precedent to the making of any of the loans described in
the Loan Documents, each of the following  conditions shall be satisfied to the
satisfaction of Fremont and its counsel unless waived by Fremont in writing:

          a.   No Event of Default shall exist;

          b.   Borrower shall have executed and delivered, or caused to be
     executed and delivered, each of the Loan Documents and all other
     instruments, documents, agreements, waivers, financing statements,
     assignments, and subordination agreements as in the opinion of Fremont may
     be necessary to give effect to the Loan Agreement, the transactions
     contemplated thereby or the perfection of Fremont's security interest in
     the Collateral;

          c.   Guarantor shall have executed and delivered, or caused to be
     executed and delivered, a Continuing Guaranty, in form and substance
     acceptable to Fremont, and all other instruments, documents, agreements,
     waivers, financing statements, deeds of trust and subordination agreements
     as in the opinion of Fremont may be necessary to give effect to such
     Continuing Guaranty, the transactions contemplated thereby;

          d.   Borrower shall have executed, and Fremont shall have filed, all
     financing statements deemed necessary or desirable to Fremont to perfect
     Fremont's security


                                        1

<PAGE>

     interest in the Collateral, and Fremont shall have received assurances
     satisfactory to it that such security interests are duly perfected, first
     priority security interests;

          e.   Borrower shall have delivered to Fremont evidence satisfactory to
     Fremont that the Collateral has been insured in such amounts as may be
     acceptable to Fremont, in its sole discretion, and in compliance with the
     provisions of the Loan Agreement and that Fremont has been named as lender
     loss payee on endorsements, in form and substance satisfactory to Fremont,
     issued in conjunction with all such policies of insurance;

          f.   Borrower shall have caused to be delivered to Fremont a copy of
     its Articles of Incorporation certified by the Secretary of State of
     California together with a Good Standing Certificate for Borrower issued by
     the Secretary of State of California, each of which to be issued within
     sixty (60) days prior to the date of the Loan Agreement;

          g.   Since January 1, 1996, there shall not have occurred any material
     adverse change in the business, financial condition or results of
     operations of Borrower or the existence or value of any of the Collateral;

          h.   Fremont and Michael W. Hogarty shall have entered into a
     Subordination and Standby Agreement, in form and substance satisfactory to
     Fremont; and

          i.   Fremont shall have received from Borrower's landlord(s) a duly
     executed Subordination and Consent of Real Property Owner, in form and
     substance satisfactory to Fremont, with respect to each leased property
     where Borrower stores Inventory or Equipment.

          j.   At the time of initial funding under the Loan Documents, there
     shall be borrowing availability under Section 2.1 of the Loan Agreement to
     provide sufficient funding to pay (a) the amount of Borrower's indebtedness
     to the Existing Secured Lenders PLUS (b) the Loan Origination Fee of
     $5,000.00 described in Section 2.9 of the Loan Agreement, PLUS (c) the
     Documentation Fee of $1,000 described in Section 2.11 of the Loan
     Agreement.

     4.   Borrower's failure to fulfill, or cause to be fulfilled, each of the
foregoing conditions precedent to the satisfaction of Fremont on or before March
31, 1996 shall relieve Fremont of any obligation to consummate the transactions
contemplated by the Loan Documents.

     5.   The terms and conditions of this Rider are incorporated in and made a
part of the Loan Agreement.


                                        2

<PAGE>

     IN WITNESS WHEREOF, this Rider has been executed by the parties hereto as
of the date first written above.

INTERNATIONAL FOOD AND BEVERAGE, INC.
a Delaware corporation


Signed By: /s/ Michael W. Hogarty
          -----------------------------
Print Name: Michael W. Hogarty
Title/Capacity: President


FREMONT BUSINESS CREDIT,
A DIVISION OF FREMONT FINANCIAL CORPORATION,
a California corporation


Signed By: /s/ Jeffrey Lizar
          -----------------------------
Print Name: Jeffrey Lizar
Title/Capacity: Vice President

                                        3
<PAGE>

                       SUBORDINATION AND STANDBY AGREEMENT
                                 BY AND BETWEEN
                             FREMONT BUSINESS CREDIT
                                  A DIVISION OF
                          FREMONT FINANCIAL CORPORATION
                                       AND
                               MICHAEL W. HOGARTY
                                   RELATING TO
                      INTERNATIONAL FOOD AND BEVERAGE, INC.


     This Agreement, dated as of March 15, 1996, is by and between FREMONT
BUSINESS CREDIT, A DIVISION OF FREMONT FINANCIAL CORPORATION, a California
corporation ("Fremont"), and Michael W. Hogarty, an Individual ("Creditor").

     1.   BACKGROUND.

          (a)  International Food and Beverage, Inc. a Delaware corporation
("Borrower"), is currently or is about to become indebted to Creditor in the
principal amount of Four hundred fifty-five thousand Dollars ($455,000.00). The
indebtedness evidenced thereby is secured by a security interest in Borrower's
"Collateral" (defined below).

          (b)  Borrower has asked Fremont to make loans to Borrower, part of
which shall be on a revolving basis. Borrower's obligations and indebtedness to
Fremont are or are to be secured in part by a security interest in the
"Collateral." Fremont is unwilling to make or continue to make such loans unless
Creditor executes this Agreement.

          (c)  Therefore, in consideration of the foregoing and the covenants
set forth below, the parties hereto have signed this Agreement to establish the
relative priorities of their respective security interests in the Collateral and
to memorialize certain other agreements with respect to the enforcement of their
respective rights and remedies against the Borrower.

     2.   DEFINITIONS. For purposes of this Agreement:

          (a)  "Fremont's Debt" means all obligations, liabilities and
indebtedness from time to time owing by Borrower to Fremont under Fremont's
Documents or otherwise.

          (b)  "Fremont's Documents" means any and all agreements, instruments
and documents, together with any amendments thereto or replacements thereof,
evidencing or securing a financing arrangement or arrangements between Fremont
and the Borrower, including without limitation the Loan and Security Agreement
between Borrower and Fremont.

          (c)  "Collateral" means any existing or hereafter acquired personal
property of the Borrower, whether tangible or intangible, including without
limitation accounts, inventory, general intangibles and equipment, together with
all proceeds of the foregoing. Collateral also includes the personal guaranties
executed on behalf of Borrower and delivered by Guarantor(s) to Creditor and
Fremont, respectively.

          (d)  "Creditor's Debt" means all obligations, liabilities and
indebtedness from time to time owing by Borrower to Creditor under Creditor's
Documents or otherwise.


                                        1

<PAGE>

          (e)  "Creditor's Documents" means any and all agreements, instruments
and documents, together with any amendments thereto or replacements thereof, now
or hereafter evidencing or securing a financing arrangement or arrangements
between Creditor and Borrower.

          (f)  "Debt" means either Creditor's Debt or Fremont's Debt, as
appropriate.

          (g)  "Documents" means either Creditor's Documents or Fremont's
Documents, as appropriate.

     Except as defined in this Agreement, all terms used in this Agreement shall
have the meanings provided in the Uniform Commercial Code.

     3.   SUBORDINATION; STANDBY.

          (a)  Creditor agrees to subordinate, and does hereby subordinate, any
security interests or liens it now or hereafter has in or upon the Collateral
under Creditor's Documents or otherwise to any security interests in or liens
upon the Collateral which Fremont now or hereafter has under Fremont's Documents
or otherwise. Such subordination shall be effective regardless of whether the
security interests and liens of Fremont are valid, enforceable and/or perfected.
Creditor further agrees to subordinate and does hereby subordinate payment by
the Borrower of all or any part of Creditor's Debt to Fremont on Fremont's Debt.

          (b)  Regardless of whether a default exists under Creditor's
Documents, Creditor shall not, without the prior written consent of Fremont, (i)
demand payment of, sue for or receive all or any part of Creditor's Debt, by 
setoff or otherwise, or (ii) take any action to enforce its security 
interests in or liens on, or exercise any other rights with respect to, the 
Collateral or Creditor's Documents until all of the financing arrangements 
between Fremont and Borrower have been terminated and all of Fremont's Debt 
has been fully paid and satisfied; PROVIDED, that so long as Fremont has not 
notified Creditor of the existence of any Event of Default, Creditor may 
receive regularly scheduled payments of accrued interest from Borrower (but 
no prepayments) at a Rate not to exceed ten and one-quarter percent (10.25%) 
per annum.

          (c)  Upon a distribution of the assets or readjustment of the
indebtedness of Borrower by reason of liquidation, composition, bankruptcy,
arrangement, receivership, assignment for the benefit of creditors or any other
action or proceeding involving the readjustment of all or any of the debts of
Borrower, or the application of the assets of Borrower to the payment or
liquidation thereof, Creditor acknowledges that the payment and satisfaction of
Fremont's Debt shall have priority over the payment and satisfaction of
Creditor's Debt. Fremont is irrevocably authorized and empowered to receive and
collect any and all dividends, payments and distributions made on account of any
proof of claim relating to Creditor's Debt in whatever form the same may be paid
or issued until Fremont's Debt is paid or satisfied. Creditor agrees that if
Creditor does not file a proof of claim, Fremont may do so on behalf of
Creditor. If Creditor does file a proof of claim in respect of Creditor's Debt,
Creditor shall execute and deliver to Fremont such assignments or other
instruments as Fremont may require to enable Fremont to collect all dividends,
payments and distributions which may be made at any time on account of
Creditor's Debt until Fremont's Debt is fully paid and satisfied.

          (d)  Except with respect to Permitted Payments, should any payment,
distribution, security or instrument, or any proceeds thereof, be received by
Creditor upon or with respect to Creditor's Debt prior to the satisfaction of
all of Fremont's Debt and termination of all financing arrangements between
Borrower and Fremont, Creditor shall receive and hold the same in trust, as
trustee, for the benefit of Fremont and shall forthwith deliver the same to
Fremont in precisely the form received (except for the endorsement or assignment
by Creditor where necessary), for application on any of Fremont's Debt, due or
not due, and, until so delivered, the same shall be held in trust by Creditor as
the property of Fremont. In the event of the failure of Creditor to make any
such


                                        2

<PAGE>

endorsement or assignment to Fremont, Fremont, or any of its officers or
employees, is hereby irrevocably authorized to make the same.

     4.   NO ASSIGNMENT. Each of Fremont and Creditor represents, warrants and
covenants to the other that it has not subordinated, assigned or transferred,
and agrees that it will not subordinate, assign or transfer at any time this
Agreement remains in effect, any right, claim or interest of any kind in or to
its Debt unless such subordination, assignment or transfer is made subject to
this Agreement.

     5.   LIMITATION ON CREDITOR'S COLLATERAL. Creditor agrees that until
Fremont's debt has been fully paid and satisfied and the financing agreements
between Borrower and Fremont have been terminated, Creditor will not obtain any
liens or security interests in any Collateral other than the Collateral in which
Creditor currently has an interest, whether to secure Creditor's debt now or
hereafter owing.

     6.   INSTRUMENT LEGEND: AMENDMENTS. Any of Creditor's Documents now or
hereafter evidencing any of the Creditor Debt, or any portion thereof, will be
inscribed with a legend conspicuously indicating that payment thereof is
subordinated to the claims of Lender pursuant to the terms of this Agreement,
and copies thereof will be promptly delivered to Lender.

     7.   AMENDMENTS TO DOCUMENTS; WAIVERS. Creditor agrees that Fremont may at
any time or times, in its discretion, (i) renew or extend the time of payment of
Fremont's Debt, (ii) waive or release any Collateral or guaranties which may be
held therefor, or (iii) modify or amend Fremont's Documents or Debt without
further consent from Creditor or any other party, and without impairing or
affecting this Agreement or any of Fremont's rights hereunder. Creditor further
agrees that Creditor's Documents may not be modified or amended without
Fremont's prior written consent. Creditor further agrees that Fremont shall be
entitled to manage and supervise its financial arrangements with Borrower in
accordance with its usual practices, modified from time to time as it deems
appropriate under the circumstances, without affecting the validity or
enforceability of this Agreement and without regard to the existence of any
rights that Creditor may now or hereafter have in or to any of the assets of
Borrower, and Fremont shall have no liability to Creditor for, and Creditor
waives any claim which it may now or hereafter have against Fremont arising out
of any and all actions which Fremont, in good faith, takes or omits to take
(including, without limitation, actions with respect to the creation, perfection
or continuation of liens or security interests in any existing or future
Collateral, actions with respect to the occurrence of an Event of Default,
actions with respect to the foreclosure upon, sale, release or depreciation of,
or failure to realize upon any of the Collateral and actions with respect to the
collection of any claim for all or any part of Fremont's Debt from any account
debtor, guarantor or any other party) with respect to Fremont's Documents or to
the collection of Fremont's Debt or the valuation, use, protection or release of
Fremont's Collateral.

     8.   MARSHALING; APPLICATION OF PAYMENTS. Creditor hereby waives any rights
Creditor has or may have in the future to require Fremont to marshal its
Collateral, and agrees that Fremont may proceed against its Collateral in any
order that it deems appropriate in the exercise of its absolute discretion.

     9.   BANKRUPTCY FINANCING ISSUES. If Borrower shall become subject to a
proceeding under the Bankruptcy Code and if Fremont shall desire to permit the
use of Collateral or to provide financing to Borrower under either Section 363
or Section 364 of the Bankruptcy Code, Creditor agrees as follows: (i) adequate
notice to Creditor shall have been provided for such financing if Creditor
receives notice one (1) business day prior to the entry of the order approving
such financing; and (ii) no objection will be raised by Creditor to any such
financing on the ground of a failure to provide adequate protection for
Creditor's lien position in the Collateral. For purposes of this paragraph,
notice of a proposed financing or use of cash Collateral shall be deemed given
upon the giving of notice by telegram, telecopy or hand-delivery to Creditor, at
the address and location indicated in Paragraph 11. This Subordination Agreement
shall be applicable both before and after the filing of any petition by or
against Borrower under the Bankruptcy Code and all references herein to Borrower
shall be deemed to


                                        3

<PAGE>

apply to a trustee for Borrower and to Borrower as debtor-in-possession.

     10.  REPRESENTATIONS CONCERNING THE BORROWER. Neither Fremont, nor any of
its directors, officers, agents or employees, shall be responsible to Creditor
for (i) Borrower's solvency, financial condition, or ability to repay Creditor's
Debt, (ii) any oral or written statements of Borrower, or (iii) the validity,
sufficiency or enforceability of such Debt, any Documents or the security
interests and liens granted by Borrower to Fremont. Creditor has entered into
its Documents and financing arrangements with Borrower based upon its own
independent investigation, and has not relied on any warranty or representation
of Fremont with respect to the matters referred to in this paragraph.

     11.  MISCELLANEOUS.

          (a)  This Agreement shall be irrevocable and shall continue effective
until Fremont's Debt has been paid in full and the financing agreements between
Borrower and Fremont have been terminated.

          (b)  Either party's failure to exercise any right hereunder shall not
be construed as a waiver of the right to exercise the same or any other right at
any other time and from time to time thereafter, and such rights shall be
cumulative and not exclusive.

          (c)  The knowledge by either party of any breach or other non-
observance by the other party of the terms of this Agreement shall not
constitute a waiver thereof or of any obligations to be performed by the other
party hereunder.

          (d)  Paragraph headings used herein are for convenience only, and
shall not affect the meaning of any provision of this Agreement.

          (e)  All notices or consents required under the terms and provisions
of this Agreement shall be in writing and sent to the following addresses:

If to Creditor:     Michael W. Hogarty
                    47 Coronado Pointe
                    Laguna Niguel, CA 92677


If to Fremont:      FREMONT BUSINESS CREDIT
                    2020 Santa Monica Boulevard, Suite 500
                    Santa Monica, California 90404
                    Attention: Division Credit Officer


Notices shall be deemed to have been duly given (i) if delivered personally or
otherwise actually received, or (ii) if sent by overnight delivery service.
Notice given in any manner described in this paragraph shall be effective upon
receipt by the addressee thereof; provided, however, that if any notice is
tendered to an addressee and delivery thereof is refused by such addressee, such
notice shall be effective upon such tender.

          (f)  This Agreement shall be binding upon and inure to the benefit of
the parties hereto and their respective successors and permitted assigns.

          (g)  The prevailing party in any litigation arising out of or relating
to this Agreement shall be entitled to its attorneys' fees and costs.


                                        4

<PAGE>

          (h)  THE VALIDITY OF THIS AGREEMENT, ITS CONSTRUCTION, INTERPRETATION,
AND ENFORCEMENT AND THE RIGHTS OF THE PARTIES HERETO SHALL BE DETERMINED UNDER,
GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF
CALIFORNIA, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW. THE PARTIES AGREE
THAT ALL ACTIONS OR PROCEEDINGS ARISING IN CONNECTION WITH THIS AGREEMENT SHALL
BE TRIED AND LITIGATED ONLY IN THE STATE COURTS LOCATED IN THE COUNTY OF LOS
ANGELES, STATE OF CALIFORNIA, THE FEDERAL COURTS WHOSE VENUE INCLUDES THE COUNTY
OF LOS ANGELES, STATE OF CALIFORNIA, OR, AT THE SOLE OPTION OF FREMONT, IN ANY
OTHER COURT IN WHICH FREMONT SHALL INITIATE LEGAL OR EQUITABLE PROCEEDINGS AND
WHICH HAS SUBJECT MATTER JURISDICTION OVER THE MATTER IN CONTROVERSY. CREDITOR
AND FREMONT EACH WAIVES, TO THE EXTENT PERMITTED UNDER APPLICABLE LAW, THE RIGHT
TO A TRIAL BY JURY AND ANY RIGHT EACH MAY HAVE TO ASSERT THE DOCTRINE OF "FORUM
NON CONVENIENS" OR TO OBJECT TO VENUE TO THE EXTENT ANY PROCEEDING IS BROUGHT IN
ACCORDANCE WITH THIS SECTION.

          IN WITNESS WHEREOF, the parties hereto have signed this Agreement as
of the date first written above.

CREDITOR:


     Michael W. Hogarty                 FREMONT BUSINESS CREDIT,
-----------------------------------     A DIVISION OF FREMONT FINANCIAL
                                        CORPORATION

Signed By: /s/ Michael W. Hogarty       Signed By: /s/ Jeffrey Lizar
          -------------------------               -------------------------
Print Name: Michael W. Hogarty          Print Name: Jeffrey Lizar
Title/Capacity: Individual              Title/Capacity: Vice President


                           ACKNOWLEDGMENT BY BORROWER

     The undersigned, the Borrower in the foregoing Subordination and Standby
Agreement (the "Agreement"), hereby acknowledges that it has received a copy of
the Agreement and consents thereto, and agrees to recognize all priorities and
other rights granted therein to the parties thereto, and Borrower will not do
any act or perform any obligation which is not in accordance with the priorities
and agreements set forth in the Agreement.


BORROWER:

 International Food and Beverage, Inc.
--------------------------------------

Signed By: /s/ Michael W. Hogarty
          ----------------------------
Print Name: Michael W. Hogarty
Title/Capacity: President                               Dated: March 15,1996


                                        5

<PAGE>

                               CONTINUING GUARANTY

                                  (Individual)

      To induce Fremont Business Credit, a division of Fremont Financial
Corporation, a California corporation (FREMONT), to grant credit to 
International Food and Beverage, Inc. a Delaware corporation (BORROWER), and 
in consideration thereof and of any loans, advances, or other financial 
accommodations heretofore or hereafter granted by Fremont to or for the 
account of Borrower, the undersigned Michael W, Hogarty (hereinafter called 
GUARANTOR) unconditionally Guaranties the full and prompt payment and 
performance by Borrower of all of Borrower's Indebtedness (as hereinafter 
defined) and obligations to Freemont whether now existing or hereafter 
arising from time to time, and promise to pay to Fremont, or order, on 
demand, in lawful money of the United States, all of Borrower's Indebtedness 
to Fremont, and all costs and expenses, including attorneys fees and legal 
expenses, paid or incurred by Fremont in endeavoring to collect the 
Indebtedness, or any part thereof, and in enforcing this Continuing Guaranty.

     1.   DEFINITIONS. The word INDEBTEDNESS is used herein in its most
comprehensive sense and includes any and all advances, debts, obligations and 
liabilities of Borrower (including any interest which, but for the 
application of the provisions of the U,S, Bankruptcy Code, would have accrued 
on such amounts), heretofore, now or hereafter made, incurred, created, or 
arising, whether direct or indirect, absolute or contingent voluntary or 
involuntary, due or to become due, liquidated or unliquidated, determined or 
undetermined, secured or unsecured, however created, arising, or evidenced, 
whether Borrower may be liable thereon individually or jointly with others, 
and whether Borrower or any other party or person has any right or power to 
assert any claim or defense to the validity or enforceability of the 
Indebtedness.

     2.   TERMINATION. This Continuing Guaranty; is continuing, unlimited.
absolute, and unconditional. This Continuing Guaranty may be terminated by
Guarantor only by an express, written notice to Fremont of termination, and no
notice as termination shall be effective until it is actually received by
Fremont. No notice of termination shall affect or impair the obligations of
Guarantor with respect to any Indebtedness existing on the date Fremont receives
such notice, any interest thereon, or any expenses paid or incurred by Fremont
in endeavoring to collect the Indebtedness or any part thereof, or in enforcing
this Continuing Guaranty. No notice of termination by Guarantor shall affect or
impair the obligations of any other guarantor of the Indebtedness. No payment by
Guarantor shall reduce the Guarantor's obligations hereunder unless written
notice to that effect is received by Fremont at or prior to Fremont's receipt of
such payment.

     3.   OBLIGATIONS. Guarantor's obligations hereunder are independent of the
obligations of Borrower.  Guarantor waives the benefit of any statute of
limitations affecting Guarantor's liability hereunder or the enforcement hereof.
See attached page 1(a) incorporated herein by this reference.

     4.   INDEMNITY. Guarantor agrees to indemnify and hold Fremont harmless
from and against all claims, actions, causes of action demands, obligations,
liabilities, losses, costs, and expenses in connection with, on account of, or
in any way relating to or arising from Fremont's transactions with Borrower;
PROVIDED that the foregoing indemnification shall not extend to liabilities,
damages, losses, obligations judgments and expenses arising from the gross
negligence or willful misconduct of Fremont.

     5.   CONTINUATION OF TERMS. This Continuing Guaranty shall not be affected
or impaired by any modifications, supplements, extensions or amendments of any
contract or agreement to which the parties thereto may hereafter agree, nor by
any modifications, releases or other alterations of any of the Indebtedness
hereby guarantied or of any security therefor, nor by any agreements or
arrangements whatever with Borrower or anyone else.

     6.   AUTHORIZATION. Guarantor authorizes Fremont, without notice or demand
and without affecting Guarantor's liability hereunder, from time to time and any
number of times, to take any or all of the following actions:

          (a)  renew, compromise, extend, accelerate or otherwise change the
               time for payment of, or otherwise change the terms of the
               indebtedness or any part thereof, including increase or decrease
               of the rate of interest thereon;

          (b)  take and hold security for the payment of this Continuing
               Guaranty or the Indebtedness, and exchange, enforce, waive and
               release any such security;

          (c)  apply such security and direct the order or manner of sale
               thereof as Fremont in its discretion may determine;

          (d)  release or substitute any other guarantors, sureties, or
               endorsers of the Indebtedness; and

          (e)  assign, without notice, this Continuing Guaranty in whole or in
               part, or Fremont's rights hereunder, to anyone at any time.


                                        1

<PAGE>

     3.   OBLIGATIONS (CONTINUED). In the event an Insolvency Proceeding has 
been filed by or against Borrower and such proceeding is continuing or if 
Fremont determines, in its sole discretion, that an Event of Default has 
occurred under Section 8.4 of the Loan and Security Agreement between 
Borrower and Fremont, a separate action or actions may be brought and 
prosecuted against Guarantor, irrespective of whether Borrower is joined in 
any such action or actions. In any circumstance in which none of the facts 
described in the previous sentence have occurred, Fremont agrees that any 
action or actions against Guarantor under this Continuing Guaranty shall be 
brought and prosecuted concurrently with or subsequent to any action or 
actions against Borrower.


                                      1(a)

<PAGE>

     7.   WAIVERS. Guarantor waives all rights and defenses arising out of an
election of remedies by Fremont, even though that election of remedies, such 
as nonjudicial foreclosure with respect to security for the Indebtedness 
guarantied hereunder, has destroyed Guarantor's rights of subrogation and 
reimbursement against Borrower by the operation of Section 580d of the 
California Code of Civil Procedure or otherwise. Guarantor waives any right 
of subrogation, contribution, indemnity or reimbursement that Guarantor has 
or may have against Borrower with respect to the Indebtedness guarantied 
hereunder until such time as the Indebtedness guarantied hereunder has been 
indefeasibly paid in full. Guarantor waives any right to require Fremont to 
(a) proceed against Borrower; (b) proceed against or exhaust any security 
held from Borrower; or (C) pursue any other remedy in Fremont's power 
whatsoever. Guarantor waives any defense arising by reason of any disability 
or other defense of Borrower or by reason of the cessation from any cause 
whatsoever of the liability of Borrower. Guarantor agrees that nothing shall 
discharge or satisfy the liability of Guarantor hereunder except the full and 
indefeasible payment and performance of all of Borrower's Indebtedness and 
obligations to Fremont with interest. Borrower's Indebtedness and obligations 
shall not be considered indefeasibly paid until all payments to Fremont are 
no longer subject to any right, by any person, to invalidate or set aside 
such payments or to seek to recoup the amount of such payments or to declare 
such payments to be fraudulent or preferential. In the event any portion of 
any such payments shall be set aside or restored, then Guarantor shall be 
liable for the full amount Fremont is required to repay, plus any costs and 
expenses (including attorneys fees) paid by Fremont in connection therewith. 
Any and all present and future debts and obligations of Borrower to Guarantor 
are hereby postponed in favor of and subordinated to the full payment and 
performance of all Indebtedness of Borrower to Fremont.(1)  All monies or 
other property of Guarantor at any time in Fremont's possession may be held 
by Fremont as security for any and all obligations of Guarantor to Fremont 
however and whenever arising, whether absolute or contingent, whether due or 
to become due and whether under this Continuing Guaranty or otherwise. 
Guarantor also agrees that Fremont's books and records showing the account 
between Fremont and Borrower shall be admissible in any action or proceeding 
and shall be binding upon Guarantor for the purpose of establishing the items 
therein set forth and shall constitute prima facie proof thereof. Guarantor 
waives all presentments, demands for performance, notices of non-performance, 
protests, notices of protest, notices of dishonor, notices of default, 
notices of acceptance of this Continuing Guaranty and of the existence, 
creation or incurrence of new or additional indebtedness, notice of any and 
all favorable and unfavorable information, financial or other, about 
Borrower, heretofore, now or hereafter learned or acquired by Fremont and all 
other notices to which Guarantor might otherwise be entitled.

     8.   MAINTENANCE OF INFORMATION. Guarantor hereby represents to Fremont
that Guarantor is and will remain informed of the financial condition of
Borrower and of all other circumstances which bear upon the risk of non-payment
of Borrower's Indebtedness and any other obligations of Borrower guarantied
hereby. Guarantor agrees that Fremont is not obligated to inform Guarantor of
any such circumstances, whether now existing or hereafter arising, and that
Fremont is not required to inquire into the powers of Borrower or the 
officers, directors, partners or agents acting or purporting to act on its 
behalf, and any Indebtedness made or created in reliance upon the professed 
exercise of such powers shall be guarantied hereunder.

     9.   ATTORNEYS FEES. Guarantor agrees to pay reasonable attorneys fees
(including the allocated costs of Fremont's in-house counsel) and all other
costs and expenses which may be incurred by Fremont in the enforcement of this
Continuing Guaranty or any claim hereunder or under any other instrument or
guaranty.

     10.  AMENDMENTS IN WRITING. No termination or modification of this
Continuing Guaranty shall be effective for any purpose unless it is in writing
and executed by an officer of Fremont authorized to do so.

     11.  DEMAND PAYMENT. Guarantor agrees that upon the occurrence of an EVENT
OF DEFAULT (as defined in the Loan and Security Agreement between Borrower and
Fremont), Guarantor, immediately following a demand for payment from Fremont,
shall pay Fremont the full amount of the Indebtedness guarantied hereunder.

     12.  SUCCESSORS AND ASSIGNS. The death of Guarantor shall not terminate 
this Continuing Guaranty. This Continuing Guaranty shall be binding upon the 
heirs, executors, administrators, trustees, beneficiaries, successors and 
assigns of Guarantor and shall inure to the benefit of Fremont, its 
successors and assigns, including without limitation Fremont Funding Inc. and 
LaSalle National Bank (or any successor thereto), as trustee of the Fremont 
Small Business Loan Master Trust.

     13.  SECURITY. This Continuing Guaranty is secured by:  N/A
                        


(1)  , with the exception of interest payable as permitted in the Subordination
     and Standby Agreement by and between Fremont and Guarantor along with
     reasonable expenses and salary generated in the ordinary course of
     Borrower's business.


                                        2

<PAGE>

     14.  CHOICE OF LAW AND VENUE. THE VALIDITY OF THIS CONTINUING GUARANTY, ITS
CONSTRUCTION INTERPRETATION, AND ENFORCEMENT AND THE RIGHTS OF THE PARTIES
HERETO SHALL BE DETERMINED UNDER GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH
THE LAWS OF THE STATE OF CALIFORNIA.

THE PARTIES AGREE THAT ALL ACTIONS OR PROCEEDINGS ARISING IN CONNECTION WITH
THIS CONTINUING GUARANTY SHALL BE TRIED AND LITIGATED ONLY IN THE STATE COURTS
LOCATED IN THE COUNTY OF LOS ANGELES, STATE OF CALIFORNIA. THE FEDERAL COURTS
WHOSE VENUE INCLUDES THE COUNTY OF LOS ANGELES, STATE OF CALIFORNIA OR, AT THE
SOLE OPTION OF FREMONT, IN ANY OTHER COURT IN WHICH FREMONT SHALL INITIATE LEGAL
OR EQUITABLE PROCEEDINGS AND WHICH HAS SUBJECT MATTER JURISDICTION OVER THE
MATTER IN CONTROVERSY. THE PARTIES EXPRESSLY SUBMIT AND CONSENT IN ADVANCE TO
SUCH JURISDICTION IN ANY ACTION OR PROCEEDING COMMENCED IN ANY SUCH COURT, AND
THE PARTIES HEREBY WAIVE ANY OBJECTION WHICH EITHER MAY HAVE BASED UPON LACK OF
PERSONAL JURISDICTION AND HEREBY CONSENT TO THE GRANTING OF SUCH LEGAL OR
EQUITABLE RELIEF AS IS DEEMED APPROPRIATE BY ANY SUCH COURT. FURTHERMORE,
BORROWER AND FREMONT EACH WAIVES TO THE EXTENT PERMITTED UNDER APPLICABLE LAW,
ANY RIGHT EACH MAY HAVE TO ASSERT THE DOCTRINE OF "FORUM NON CONVENIENS" OR TO
OBJECT TO VENUE TO THE EXTENT ANY PROCEEDING IS BROUGHT IN ACCORDANCE WITH THIS
SECTION 14.

     15.  WAIVER OF JURY TRIAL. GUARANTOR HEREBY WAIVES GUARANTOR'S RIGHT TO A
JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS
CONTINUING GUARANTY OR ANY OF THE OTHER LOAN DOCUMENTS OR ANY OF THE
TRANSACTIONS CONTEMPLATED HEREIN OR THEREIN, INCLUDING CONTRACT CLAIMS, TORT
CLAIMS, BREACH OF DUTY CLAIMS AND ALL OTHER COMMON LAW OR STATUTORY CLAIMS.
GUARANTOR REPRESENTS THAT GUARANTOR HAS REVIEWED THIS WAIVER AND KNOWINGLY AND
VOLUNTARILY WAIVES GUARANTOR'S JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH
LEGAL COUNSEL IN THE EVENT OF LITIGATION, A COPY OF THIS CONTINUING GUARANTY MAY
BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT.

     IN WITNESS WHEREOF, the undersigned Guarantor has executed this Continuing
Guaranty this 15th day of March, 1996.




WITNESS:                                GUARANTOR:


Signed By: /s/ Jeffrey Lizar            Signed By: /s/ Michael W. Hogarty
          -------------------------               ------------------------------
Print Name: Jeffrey Lizar               Print Name: Michael W. Hogarty

                                             47 Coronado Pointe
                                        ----------------------------------------
                                        Home Address

                                             Laguna Niguel, CA  92677
                                        ----------------------------------------
                                        City/State/Zip


                                        3

<PAGE>

   [ COMPLETE THE APPROPRIATE NOTARIAL CERTIFICATES IF SIGNER(S) CANNOT APPEAR
                                 BEFORE FREMONT]

               CONTINUING GUARANTY DATED
                                         ----------------------


               ACKNOWLEDGMENT BY GUARANTOR(S) BEFORE NOTARY PUBLIC

STATE OF CALIFORNIA                )
                                   ) ss.
COUNTY OF_______________________   )

On _____________________, 19____, before me, ______________________________
personally appeared _________________________________________, personally known
to me (or proved to me on the basis of satisfactory evidence) to be the person
whose name is subscribed to the within instrument and acknowledged to me that
he/she executed the same in his/her authorized capacity, and that by his/her
signature on the instrument the person, or the entity upon behalf of which the
person acted, executed the instrument.

WITNESS my hand and official seal.

Signature:
           ------------------------------------
My Commission Expires:                                                    (Seal)
                      -------------------------
Address:
        ---------------------------------------
City/State/Zip:
               --------------------------------


                                        4

<PAGE>

                             SECRETARY'S CERTIFICATE

      I, Ann M. Gooch do hereby certify that I am the duly elected an 
Secretary of International Food and Beverage,Inc., a Delaware corporation 
(the CORPORATION), that the following is a true and correct copy of the 
resolutions duly adopted by the Board of Directors of the Corporationon the 
15th day of March, 1996, that the same have not in any way been modified or 
rescinded and are in full force and effect and that the resolutions have been 
adopted in accordance with the laws of the state of incorporation, the 
Certificate or Articles of Incorporation and the Bylaws of the Corporation, 
and that either no shareholder consent is required or any necessary 
shareholder consent has been obtained:

           "RESOLVED, that any one or more of the officers of the Corporation
     referred to below be and hereby are authorized and empowered on behalf of
     the Corporation to transact any and all business with Fremont Business
     Credit, a division of Fremont Financial Corporation (FREMONT) which the
     Corporation could in any way transact and are further authorized to
     execute, acknowledge and deliver on behalf of the Corporation and in its
     name to Fremont the following (the AGREEMENTS):

               1.   A Loan and Security Agreement, together with riders,
          attachments and addenda thereto, and Secured Promissory Note(s) in
          favor of Fremont, each in form and content as such officer deems
          necessary and appropriate;

               2.   All security agreements, pledge agreements, financing
          statements, deeds of trust, mortgages, assignments and other
          instruments of conveyance in favor of Fremont to effect a grant of a
          security interest or lien in all or a portion of the Corporation's
          assets, including without limitation accounts, inventory, equipment,
          general intangibles and real property; and

               3.   All documents, instruments, agreements or certificates
          ancillary to the aforementioned loan and security documentation to the
          benefit of Fremont deemed necessary or appropriate to consummate the
          transactions with Fremont contemplated by the Corporation:

          "RESOLVED FURTHER, that the following are the true and correct names,
     signatures, and titles of the officers of the Corporation referred to
     above:

<TABLE>
<CAPTION>
               NAMES                      SIGNATURES                       TITLES
<S>                                <C>                          <C>
          Michael W. Hogarty        /s/ Michael W. Hogarty       President
          --------------------------------------------------------------------------------
          Ann M. Gooch              /s/ Ann M. Gooch             Chief Financial Officer
          --------------------------------------------------------------------------------

          --------------------------------------------------------------------------------

          --------------------------------------------------------------------------------

          --------------------------------------------------------------------------------
</TABLE>


          "RESOLVED FURTHER, that each of the foregoing officers is hereby
     authorized to execute and deliver, for and on behalf of the Corporation,
     all such other documents, instruments and agreements and to do all such
     other acts and things as, in the opinion of such officer, may be necessary
     or appropriate in order to effectuate the intent and purpose of the
     foregoing resolutions and to consummate the transactions contemplated by
     and to be performed by the Corporation in connection with the Agreements;

          "RESOLVED FURTHER, that the acts of said officers, or any of them,
     shall at all times receive full faith and credit without the necessity of
     inquiry by Fremont as to any of the circumstances attending the same or to
     the application of any money loaned pursuant hereto, and that the acts and
     doings of said authorized officers or any of them, in respect to the
     subject matter hereof, are hereby fully ratified, approved, adopted and
     confirmed; and

          "RESOLVED FURTHER, that the authorizations herein set forth shall
     remain in full force and effect and shall apply to all amendments and
     modifications of the Agreements until written notice of the modification or
     revocation of such authorizations shall be delivered to and actually
     received by Fremont at its office."



IN WITNESS WHEREOF, I have executed this Certificate as Secretary of the
Corporation this 15th day March, of 1996.

                                        Signed By: /s/ Ann M. Gooch
                                                  ------------------------------
                                        Print Name: Ann M. Gooch

                                        Title/Capacity:     Secretary




<PAGE>


                                  [LETTERHEAD]


March 15, 1996


Mr. Michael Hogarty, President
International Food and Beverage, Inc.
30152 Aventura
Rancho Santa Margarita, CA 92688

Re: Letter of Understanding

Dear Mr. Hogarty:

This letter of understanding is with respect to the proposed loan by and between
Fremont Business Credit a division of Fremont Financial Corporation ("Fremont")
and International Food and Beverage, Inc. ("IFB").

Fremont hereby acknowledges the existence of secured debt owed to various
parties. A listing of such secured debt is listed below:

SECURED PARTY            COLLATERAL          UCC FINANCING STATEMENT #/DATE
-------------            ----------          ------------------------------
Avco Leasing             Equipment           92-193578  September 4, 1992
Liquid Carbonic Ind.     Equipment           92-267254  December 16, 1992
Gene Beck                Equipment           94-059084  April 4, 1994
AT&T Capital             Equipment           94-119639  June 13, 1994
Michael Hogarty          Blanket             9526860247 September 20, 1995

Secured debt listed above owed to Michael Hogarty shall be fully subordinated to
Fremont through the proposed Subordination and Standby Agreement. Said agreement
includes language restricting enforcement actions available to Mr. Hogarty in
the event of default including a full and absolute standstill on actions to be
taken against the collateral.

Sincerely,

/s/ Jeffrey Lizar
----------------------------
Jeffrey Lizar
Vice President


<PAGE>

<TABLE>
<S><C>

                                    IMPORTANT - READ INSTRUCTIONS ON BACK BEFORE FILLING OUT FORM

                This FINANCING STATEMENT is presented for filing pursuant to the California Uniform Commercial Code.
------------------------------------------------------------------------------------------------------------------------------------
1.   DEBTOR    (LAST NAME FIRST - IF AN INDIVIDUAL)              1A.  SOCIAL SECURITY OR FEDERAL TAX NO.
     International Food and Beverage, Inc.                            33-0307734
------------------------------------------------------------------------------------------------------------------------------------
1B.  MAILING ADDRESS                              1C.  CITY, STATE                        1D. ZIP CODE
     30152 Aventura                                    Rancho Santa Margarita, CA             92688
------------------------------------------------------------------------------------------------------------------------------------
2.   ADDITIONAL DEBTOR (IF ANY) (LAST NAME FIRST - IF AN INDIVIDUAL)  2A.  SOCIAL SECURITY OR FEDERAL TAX NO.

------------------------------------------------------------------------------------------------------------------------------------
2B.  MAILING ADDRESS                              2C. CITY, STATE                         2D. ZIP CODE

------------------------------------------------------------------------------------------------------------------------------------
3.   DEBTOR'S TRADE NAMES OR STYLES (IF ANY)                          3A.  FEDERAL TAX NO
     Jukebox, Mama Mia Italiano, and Mama Mia Homestyle
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
4.   SECURED PARTY                                                    4A.  SOCIAL SECURITY NO. FEDERAL
               Fremont Business Credit                                     TAX NO. OR BANK TRANSIT AND A.B.A. NO.
       NAME    a division of Fremont Financial Corporation
       MAILING ADDRESS 2020 Santa Monica Blvd., Suite 500                  94-1701707
       CITY    Santa Monica        STATE  CA      ZIP  90404
------------------------------------------------------------------------------------------------------------------------------------
5.   ASSIGNEE OF SECURED PARTY (IF ANY)                              5A.  SOCIAL SECURITY NO., FEDERAL TAX NO.
                                                                          OR BANK TRANSIT AND A.B.A. NO.
       NAME
       MAILING ADDRESS
       CITY                        STATE          ZIP
------------------------------------------------------------------------------------------------------------------------------------
6.   This FINANCING STATEMENT covers the following types or items of property (include description of real property on which located
     owner of record when required by instruction 4).

          All now owned and hereafter acquired equipment, goods machinery, trade fixtures, furnishings, furniture, tools,
          machine tools, office equipment, appliances, parts, dies, yigs, and chattels of every kind, including without
          limitation any or all of the foregoing which are or are to become fixtures on the real property described in the
          attached Exhibit "A". The name of the record owner of said real property is:

          The Boldman Family 1990 Trust and the Branson G. and Sally Stillion Trust. This fixture filing is filed as a
          precaution and is not intended to imply that any of the items herein described is or is to become a fixture on said
          real property.

          This Financing Statement is filed as a fixture filing and is to be filed in the real estate records.
------------------------------------------------------------------------------------------------------------------------------------
7.   CHECK     /X/       7A   /X/  PRODUCTS OF COLLATERAL   7B.  DEBTOR(S) SIGNATURE NOT REQUIRED IN
     IF APPLICABLE                 ARE ALSO COVERED              ACCORDANCE WITH INSTRUCTION 5(a) ITEM:
                                                                      / /(1)    / /(2)    / /(3)    / /(4)
------------------------------------------------------------------------------------------------------------------------------------
8.   CHECK     /X/            / /  DEBTOR IS A "TRANSMITTING UTILITY" IN ACCORDANCE WITH UCC Section 9105 (1) (n)
     IF APPLICABLE
------------------------------------------------------------------------------------------------------------------------------------
9.   /s/ Michael W. Hogarty                                                DATE: 3/15/96       C    10.  THIS SPACE FOR USE OF
SIGNATURE(S) OF DEBTOR(S)                                                                      O         FILING OFFICER (DATE, TIME,
                                                                                               D         FILE NUMBER AND FILING
                                                                                               E         OFFICER)
---------------------------------------------------------------------------------------------------
     Michael W. Hogarty, President                                                             1
     International Food and Beverage, Inc.
TYPE OR PRINT NAME(S) OF DEBTOR(S)                                                             2
------------------------------------------------------------------------------------------
     /s/ Jeffrey Lizar                                                                         3
SIGNATURE(S) OF SECURED PARTIES
                                                                                               4
------------------------------------------------------------------------------------------
     Jeffrey Lizar, Vice President                                                             5
     Fremont Business Credit, a division of
     Fremont Financial Corporation                                                             6
TYPE OR PRINT NAME(S) OF SECURED PARTIES
------------------------------------------------------------------------------------------     7
------------------------------------------------------------------------------------------
11.  RETURN COPY TO:                                                                           8

     NAME                Fremont Business Credit,                                              9
     ADDRESS             a division of Fremont Financial Corp
     CITY                2020 Santa Monica Blvd., Ste 500                                      0
     STATE               Santa Monica, CA  90404
     ZIP                 Attn: Jeffrey Lizar
------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------
(1) FILING OFFICER COPY                 FORM UCC-1 -- FILING FEE $3.00
                                        APPROVED BY THE SECRETARY OF STATE
------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------
</TABLE>

<PAGE>

                                   EXHIBIT "A"



The real property referred to herein is situated in the county of Orange, state
of California, and is described as follows: 

Lot 1 of Tract 11324, in the city of
Rancho Santa Margarita, state of California, in the office of the county
recorder of said county.

Assessors Parcel Number: 805-043-26

COMMONLY KNOWN AS: 30152 AVENTURA, RANCHO SANTA MARGARITA, CALIFORNIA

<PAGE>

                             INSTRUCTIONS (REV.1/76)

1.   PLEASE TYPE THIS FORM USING BLACK TYPEWRITER RIBBON

2.   If the space provided for any item is inadequate:

     a.   Note "Cont'd." in the appropriate space(s).

     b.   Continue the Item(s) preceded by the Item. No. on an additional 8
          1/2"x 11" sheet.

     c.   Head each additional sheet with the Debtor's name (last name first
          for individuals) appearing in Item No. 1 of this form. Be sure to
          attach a copy of the additional sheet to each copy of the form.

3.   NUMERICAL IDENTIFICATION:

     a.   If the Debtor, Secured Party or Assignee is an individual, include
          Social Security number in the appropriate space. Disclosure of Social
          Security number is optional for the filing of this statement, It will
          be used to assist in correctly identifying individuals with similar
          names. (UCC SECTION #9403 [5]).

     b.   If the Debtor, Secured Party or Assignee is other than an individual
          or a bank, show Federal Taxpayer Number in the appropriate space.

     c.   If the Secured Party or Assignee is a bank, show Transit and ABA
          number in the appropriate space. This must be the complete 10 digit
          number.

4.   COLLATERAL Description-Item 6

     a.   If the financing statement covers crops growing or to be grown, the
          statement must also contain a description of the real estate concerned
          in accordance with UCC Section #9402 (1). 


     b.   If the financing statement covers timber to be cut or covers minerals 
          or the like, oil or gas or accounts subject to UCC Section #9103 (5), 
          the statement must show that it covers this type of collateral and 
          the statement must also show it is to be recorded in the real estate
          records, and the financing statement must contain a description of 
          the real estate sufficient if it were contained in a mortgage of the 
          real estate to give constructive notice of the mortgage under the law
          of this State. If the debtor does not have an interest of record in 
          the real estate, the financing statement must show the name of a 
          record owner in Item No 6.

5.   SIGNATURES:

     Before mailing, be sure that the financing statement has been properly
     signed. A financing statement requires the signature of the debtor only
     EXCEPT under the following circumstances. If any of these circumstances
     apply, check the appropriate box in Item 7B and enter required information
     in Item 6.

     a.   Under the provisions of UCC Section #9402 (2) a financing statement is
          sufficient when it is signed by the SECURED PARTY alone if it is
          filed to perfect a security interest in:

          (1)  collateral already subject to a security interest in another
          jurisdiction when it is brought into this State or where the debtor's
          location is changed to this State. Such a financing statement must
          state that the collateral was brought into this State or that the
          debtor's location was changed to this State.

          (2)  proceeds under UCC Section #9306, if the security interest in the
          original collateral was perfected. Such a financing statement must 
          describe the original collateral and give the date of filing and the 
          file number of the prior financing statement.

          (3)  collateral as to which the filing has lapsed. Such a financing
          statement must include a statement to the effect that the prior
          financing statement has lapsed and give the date of filing and the
          file number of the prior financing statement.

          (4)  collateral acquired after a change of name, identity or corporate
          structure of the debtor.  Such a financing statement must include a
          statement that the name, identity or corporate structure of the debtor
          has been changed and give the date of filing and the file number of
          the prior financing statement and the name of the debtor as shown in
          the prior financing statement.

6.   FILING FEE-PROPER PLACE TO FILE:

     Enclose filing fee of three dollars ($3.00) payable to the appropriate
     Filing Officer.  Financing statements and related papers pertaining to
     consumer goods should be filed with the County Recorder in the county of
     the debtor's residence, or if the debtor is not a resident of this State,
     then in the office of the County Recorder of the county in which the goods
     are kept. When the collateral is crops growing or to be grown, timber to be
     cut, or minerals or the like (including oil and gas), or accounts subject 
     to Section UCC #9103 (5), then filing is with the County Recorder where 
     the property is located.  In all other cases, filing is with the Secretary
     of State.

7.   REMOVE SECURED PARTY AND DEBTOR COPIES.

     Send the ORIGINAL AND FIRST COPY with interleaved carbon paper to the
     Filing Officer with the correct filing fee. The original will be retained
     by the Filing Officer. The copy will be returned with the filing date and
     time stamped thereon. INDICATE THE NAME AND MAILING ADDRESS OF THE PERSON
     OR FIRM TO WHOM THE COPY IS TO BE RETURNED IN ITEM NO. 11.

<PAGE>

                                  [LETTERHEAD]

MICHAEL W. HOGARTY
President and Chief Executive Officer


     March 15, 1996


     Fremont Business Credit
     a division of Fremont Financial Corporation
     2020 Santa Monica Blvd., Suite 500
     Santa Monica, CA 90404

     RE:  Direction to Disburse

     Ladies and Gentlemen:

     The undersigned has delivered to you a Loan and Security Agreement
     ("Agreement") and related agreements, instruments and documents evidencing
     a financing arrangement between you and the undersigned, all of even date
     herewith.

     The undersigned hereby authorizes you to charge our loan $5,000.00 for the
     loan fee as described in the Loan and Security Agreement.

     Very truly yours,
     INTERNATIONAL FOOD AND BEVERAGE, INC.

     /s/ Michael W. Hogarty
     -----------------------------
     By: Michael W. Hogarty
     Title: President


<PAGE>


February 2, 1996


Michael W. Hogarty, President
International Food & Beverage, Inc. 30152 Aventura
Rancho Santa Margarita, CA 92688

Dear Mr. Hogarty:

In response to your request for financing, Fremont Business Credit ("FBC") is
pleased to propose establishing a lending relationship with International Food K
Beverage, Inc. ("Borrower") as outlined below. PLEASE UNDERSTAND THAT THIS IS A
PROPOSAL AND NOT A COMMITMENT TO LEND. Funding under this proposal is subject to
a satisfactory audit of the Borrower's books, records and operations, legal
approval by FBC counsel and credit approval by FBC's senior management.

CREDIT FACILITIES

FBC will provide total Credit Facilities of $500,000 as outlined below:

1.   A $500,000 revolving line of credit based upon advances of up to 75% of
     eligible accounts receivable and up to 50% of eligible raw material
     inventory.

A)   Eligible receivables shall exclude accounts over 45 days from invoice date,
     contra accounts, foreign, government, employee or affiliate accounts, poor
     credit accounts, excessive concentration accounts, service or finance
     charges or other accounts which, in the sole discretion of FBC, do not
     constitute acceptable collateral.

B)   Eligible inventory, as determined in the sole discretion of FBC, shall
     consist of raw material inventory valued on a FIFO basis at the lower of
     cost or market. Advances against inventory shall be limited to a maximum
     cash advance of $100,000.

<PAGE>

INTERNATIONAL FOOD & BEVERAGE, INC.
JANUARY 22, 1996
PAGE 2


INTEREST RATES

1.   Interest rates on the loans shall be six percent (6.0%) over the rate
announced from time to time by the Bank of America as its "Reference Rate" and
shall move on a daily basis with any changes in that rate. All interest will be
computed on the basis of a 360 day year. Collections shall be credited to the
loan on a daily basis, allowing Four (4) business days for collection of funds.

2.   A minimum monthly charge will be in effect in the amount of $2,500 per
month. If the actual monthly interest charge is less than the minimum monthly
charge, $2,500 will be billed and collected in lieu of the computed interest
amount.

3.   FBC shall receive a facility fee of one percent (1.0%) of the credit
facilities for providing the credit facilities outlined herein. This fee shall
be in addition to the interest charges provided above and shall be payable at
closing.

4.   FBC shall receive a servicing fee of $250.00 per month. This fee shall be
in addition to the interest charges provided above and shall be payable monthly.

EXPENSES

Borrower will reimburse all of FBC's costs and out-of-pocket expenses incurred
in connection with the contemplated transaction including, but not limited to,
audit fees ($1,500 per initial survey audit and $500.00 per audit thereafter)
and expenses, search fees, appraisal fees, legal fees, etc., whether or not the
transaction between us closes. Such expenses shall be paid to us upon demand,
together with such advance funds on account of such as we may, from time to
time, reasonably request. Expenses will not exceed $3,500 without prior written
notice by FBC.

TERM OF CONTRACT

The credit facility shall be for one year.

If the loans are paid off prior to the due date, the Early Termination Fee will
be five percent (5.0%) of the credit facilities.

The Early Termination Fee would not apply if Borrower gives proper written
notice at least sixty (60) days prior to the contract termination date or any
anniversary thereof, and the Credit Facility is paid off on the termination or
anniversary date as notified.


<PAGE>

INTERNATIONAL FOOD & BEVERAGE, INC.
JANUARY 22, 1996
PAGE 3


OTHER TERMS AND CONDITIONS

1.   FBC loans will be fully secured by valid first and only liens (subject to
     secured amounts owed to Michael W. Hogarty) on all accounts receivable,
     inventory, general intangibles, patents, trademarks, machinery and
     equipment (except for a first lien on equipment by Gene Beck) and other
     related collateral.

2.   Notes payable to Michael W. Hogarty in an amount not less than $390,000
     shall be subordinated to FFC allowing for payments of interest accruing at
     a rate not to exceed 10.25%. An Intercreditor Agreement in form and content
     acceptable to FBC will be executed between Michael W. Hogarty and FBC. Said
     Intercreditor Agreement will include language restricting enforcement
     actions available to the Creditor in the event of default including a full
     and absolute standstill on actions to be taken against the collateral.

3.   The Credit Facilities shall be personally guaranteed by Mr. Michael W.
     Hogarty.

4.   Landlord Waivers and/or Mortgagee Waivers acceptable to FBC will be
     obtained for any premises where Borrower's collateral is located.

5.   A lockbox/collateral proceeds account will be required in a form, and with
     a bank, acceptable to FBC.

6.   At the time of closing, after considering anticipated advances for the
     repayment of prior secured lenders, closing fees, past due trade payables
     and other past due obligations, Borrower shall have a minimum unused
     borrowing availability from FBC of $10,000.

7.   Borrower will continue to furnish FBC with all financial statements,
     projections, cash flows and other financial and collateral information as
     FBC reasonably requests.

8.   Borrower shall execute, or cause to be executed, loan agreements,
     subordination agreements and such other legal agreements as are appropriate
     in the circumstances, including security agreements and loss payee
     endorsements on insurance policies acceptable to FBC covering the subject
     assets, all of which shall contain provisions, representations, covenants
     and events of default as are satisfactory to FBC and its counsel.

<PAGE>

INTERNATIONAL FOOD & BEVERAGE, INC.
JANUARY 22, 1996
PAGE 4


DEPOSIT

As evidence of our mutual good faith, and in consideration of FBC incurring
certain expenses in the expectation of establishing a lender/borrower
arrangement between us, FBC requests that you pay to us a deposit in the amount
of $3,500 which will be:

          a.   RETURNED TO YOU, less the cost of the audit, legal fees and any
          other out-of-pocket expenses directly related to the loan application
          and credit review, if our senior management does not approve the
          proposed financing.

          b.   CREDITED TO YOUR ACCOUNT, less the aforementioned expenses if
          your credit is approved and funded;

          c.   RETAINED BY US, if our senior management approves the proposed
          financing and you elect not to do business with us or if you withdraw
          your financing request during the credit approval process.

          d.   RETAINED BY US, if, during the loan and credit review, FBC
               determines, in its sole discretion, that material disclosures
               were not made evident which would adversely affect the loan
               approval.

          e. RETAINED BY US, if, terms and conditions herein are not met.

THIS PROPOSAL DOES NOT REPRESENT A COMMITMENT since it is subject to the
satisfactory completion of our field audit, credit investigation and analysis
and final approval by our counsel and senior management. This proposal letter
cannot be relied upon by, nor is it intended to benefit, any party other than
the proposed Borrower.

To protect both Borrower and FBC from misunderstanding or disappointment, any
agreements we have reached are contained in this writing, which is the complete
and exclusive statement of the proposal from FBC, except as we may later agree
in writing to modify it.

If this proposal is acceptable to you, please sign where provided below and
return a copy of this letter, together with your deposit of $3,500 to FBC by
February 5, 1996. This proposal will expire on that date unless accepted in
accordance with the terms herein. This transaction and the events contemplated
herein must close by March 31, 1996, at which time the proposal provided herein
will expire except for your obligation to pay expenses.

FBC is pleased to be able to make this proposal and looks forward to providing
you with working capital to meet your financing needs. We hope this will be the
start of a long and mutually beneficial relationship.

<PAGE>

INTERNATIONAL FOOD & BEVERAGE, INC.
JANUARY 22, 1996
PAGE 5


Very truly yours,

Fremont Business Credit

/s/ Jeffrey B. Lizar                    Agreed to and Accepted:                 
-----------------------------------                                             
Jeffrey B. Lizar                        International Food & Beverage, Inc.     
Vice President                                                                  
                                        /s/ Michael W. Hogarty                  
                                        ----------------------------------------
                                        Michael W. Hogarty 
                                        President