Document:

Exhibit 10.18

	
 

	
CONTRACT BETWEEN AGREEMENT FOR MILLENNIUM
  GROUP

	
WORLDWIDE, INC. AND
  BAS CONGO PROVINCE (A PUBLIC

	
PRIVATE PARTNERSHIP)

	

MGW-DRC
( number 01 ) 

          MILLENNIUM
GROUP WORLDWIDE, INC., a Florida corporation Tax ID no. 82-0540176, whose address is
2825 N. 10th St. St. Augustine, Florida 32084, United States of America, herein
represented by its president, Julius V. Jackson Sr., and hereinafter referred to as MGW,
hereby enters
into this agreement with the Province of Bas Congo, office of the Governor, represented by
His Excellency, Simon Mbatshi Batshia, Governor of the province,
hereinafter referred to as BCP.

	
 

	
 

	

	
      ARTICLE 1. CONTRACT OBJECTIVES

	

	
 

	
 

	
1.1

	
The parties approve and conclude this
  agreement for the ownership and management of all natural resources of the Bas
  Congo province, not presently under contract to any other party, for the
  purpose of benefiting the citizens of the Province of Bas Congo subject to
  this agreement and all additional stake holders and the shareholders of MGW, by
  financing the extraction and development of the natural resources, providing maximum beneficiation,
  entrepreneur development, infrastructure development and job creation.

	
 

	
 

	
1.2

	
The parties agree to provide the financial
  resources and technical expertise to maximize the income to the
  stakeholders, create a world class infrastructure, attract additional foreign
  investment to the province, budget the revenue in a manner that is conducive to the
  feasibility studies previously performed by the province and to be conducted
  through this agreement. This agreement will, at a minimum, improve the housing
  stock for
  government employees and other citizens, improve the communication system for the entire
  province, develop agriculture to meet the needs of both the province and
  export markets and provide a transportation

	
 

	
 

	
 

	
mechanism to move products, develop and
  rehabilitate agro processing systems where needed, provide housing, shopping,
  building materials supply, mining, fishing and any other legal
  activity that will benefit the province.

	
 

	
 

	
1.3

	
The scope of this agreement includes supply
  and or training of the work force for execution and management of services
  needed in the province;

	
 

	
 

	
1.4

	
All goods and services referred to in
  paragraphs 1.2 and 1.3 of this agreement will comply with standards of
  quality set forth by international best practices and any
  commodity or other resource sold and not beneficiated in Bas Congo province
  will be sold at the prevailing market price at the time of the sale. However, it is the
  intent of both parties, that over time, the internal infrastructure will be
  developed to maximize the possibility of developing for retail or end user
  consumption, or any other means of exploiting for the exhaustion of the value
  chain. Both parties agree to commence operating under this agreement within
  30 days of the signing of this agreement, but no later than October 1, 2008.

	
 

	
 

	

	
ARTICLE 2. TERMS OF THE CONTRACT

	

	
 

	
This agreement is valid for a period of
  fifteen years from the date of signing, which will be automatically
  renewed for an equal period, unless written notice is given at least 90 days prior to the
  expiry date.

	
 

	
 

	

	
ARTICLE 3. WARRANTIES

	

	
 

	
3.1

	
MGW will have full responsibility for the
  quality and quantity of services provided under this agreement
  and shall therefore, warranty all work and services provided either
  directly or through sub-contracts or outsourcing. If there are any quality or quantity
  issues arising under this agreement and it is clearly the fault of the majority stake
  holder of this partnership, remedies will be made at the majority stake holders
  cost. If there is intervention on the part of the province and defects or faults,
  are the result of interventions by employees or representatives of
  the province, BCP, the cost of repair, replacement or rectifying the problem, shall be borne by
  the province with the majority shareholder.

	
 

	
 

	
3.2

	
Should MGW fail to make the necessary
  repair, provide the proper service or correct the problem in
  a timely manner, the BCP may take the necessary steps at his discretion, in
  which case all costs related to this replacement, repair or

correction will be born by MGW, including
cost for outside contractors or service providers, provided that
the solution found was most optimal from the economical point of view and MGW was given ample opportunity to correct
the problem or claim within a reasonable
period of time.

	
 

	
 

	

	
ARTICLE 4.0 RIGHTS AND OBLIGATIONS OF MGW/BAS CONGO/PARTNERSHIP

	

	
 

	
4.1 RIGHTS AND
  OBLIGATIONS OF MILLENNIUM GROUP WORLDWIDE, INC.

	
 

	
4.1.1

	
Appoint a representative plenipotentiary to
  make decisions on behalf of the majority shareholder of this agreement and to
  respond to all the questions related to the execution of this agreement.;

	
 

	
 

	
4.1.2

	
Supply the necessary material, equipment, services and personnel to
  the partnership, for shipment to the designated city or village within the
  province where activities are to take
  place, according to the timetable established by the operating plan
  which will be developed under this agreement within 30 days of signing this
  agreement. The partnership will assume all the costs of freight, insurance, packing, customs taxes and other costs
  possibly due under the legislation of the country of origin or country
  of designation;

	
 

	
 

	
4.1.3

	
MGW intends to vertically integrate
  projects to maximize profit and concurrently maximize the positive
  impact on the quality of life for the citizens of Bas Congo Province. Any
  interference by one partner in the execution of the responsibilities of the other can lead to the voiding of
  the rights under this agreement of the partner
  interfering. The operating plan will stipulate all remedies for violation of this
  agreement and shall become a part of this agreement.

	
 

	
 

	
4.1.4

	
MGW will deliver the necessary technical
  expertise, products and materials to convert, whenever possible, the
  resources originating in Bas Congo, to a form that maximizes the benefits to Bas
  Congo and the region, including creating local manufacturing capabilities.

	
 

	
 

	
4.2 RIGHTS AND
  OBLIGATION OF BAS CONGO PROVINCE

	
 

	
4.2.1

	
Appoint a plenipotentiary representative
  with control and management authority who will have a right to decide in the
  name of the province, all issues related to the execution of this agreement;

	
 

	
 

	
4.2.2

	
Execute all documents necessary for the
  company to acquire the financing for the extraction of
  resources, development of infrastructure and delivery of services under this agreement;

	
 

	
 

	
4.2.3

	
The province will have the responsibility
  of paying back to the partnership any funds advanced or
  funds for services performed for its own purposes; which may be paid from the dividends;

	
 

	
 

	
4.2.4

	
Ensure the compliance of all materials and
  equipment by the national government’s regulations and tax incentives;

	
 

	
 

	
4.2.5

	
The province will facilitate the
  establishment of air services for the partnership personnel and the
  public;

	
 

	
 

	
4.2.6

	
Provide accommodation, meals and transport
  at the expense of the province until facilities are secured by the company to
  maintain its work force and sub­contractors.

	
 

	
 

	
4.2.7

	
Make available transportation, access and
  movement of employees and sub­contractors throughout the DRC, including
  obtaining proper clearances and visa invitation letters and work permits;

	
 

	
 

	
4.2.8

	
Provide the land and associated right of way for the building of
  roads and railroads for transporting
  natural resources to mainline transportation for export;

	
 

	
 

	
4.2.9

	
Provide 500 hectares for the development of
  an enterprise zone;

	
 

	
 

	
4.2.10

	
Make a provision for official travel every
  four months on investment missions around the globe;

	
 

	
 

	
4.2.11

	
Provide all official geological documents,
  feasibility studies associated with all resources including
  businesses owned by the province.

	
 

	
 

	
4.3 RIGHTS AND
  OBLIGATIONS OF THE PARTNERSHIP

	
 

	
4.3.1

	
The partnership will cooperate in the
  establishment of all logistics programs, freight forwarding programs
  shipping requirements, country incentives or anything else that could reduce the cost
  of operations, including tax incentives. As the majority partner intends to establish
  an enterprise zone to attract other well developed and operating businesses to the
  province, BCP shall, upon notification by MGW, work to establish zones or other
  incentives to increase the benefits to the partnerships stakeholders.

	
 

	
 

	
4.3.2

	
MGW/BCP will assume responsibility for the
  payment of salaries, daily allowances and overtime of its employees,
  including all social and labor contributions, health and life insurance, and
  insurance against accidents or any other costs that may be due under applicable laws
  of the Democratic Republic the Congo.

	
 

	
 

	
4.3.3

	
Assume responsibility for travel, transfer
  and accommodation expenses of its personnel outside and
  inside of the Democratic Republic of the Congo, as well as expenses related to
  trips and all fees necessary for obtaining entry and exit visas at the country of origin
  and any designated country where work will be done in association with this
  agreement.

	
 

	
 

	
4.3.4

	
Provide all work force, tools and equipment
  that might be necessary for providing service in such volume and quality,
  including transportation of materials,
  products and services to the city, village or adjoining province where work
  is to be performed.

	
 

	
 

	
4.3.5

	
Pay costs for private communication and
  personal use materials that the province may supply to the company or to its employees. These expenses
  shall be deducted in monthly installments
  according to the cost incurred in the previous month or accounting
  period.

	
 

	
 

	
4.3.6

	
Assume responsibility for any damage caused
  to the property of the province by third parties through
  the fault, incompetence or negligence of its personnel, even though while
  providing services included in the scope of this agreement;

	
 

	
 

	
4.3.7

	
Comply with legislation and current
  internal norms and regulations of the DRC in mining and all other sectors, substituting
  any of its employees whose attitude might be considered unacceptable;

	
 

	
 

	
4.3.8

	
MGW/BCP shall pay all costs incurred on the
  evacuation of its employees for health treatment abroad, as well as all medical
  treatment and conveyance costs;

	
 

	
 

	
4.3.9

	
MGW/BCP will design, build and operate a 120 kilometer toll road
  between the city of Boma and Muanda;

	
 

	
 

	
4.3.10

	
MGW/BCP will build/rehabilitate and operate
  the airports and sea ports in the province.

	
 

	
 

	
4.3.11

	
MGW/BCP partnership will acquire/build and
  operate the cement plant in the Bas Congo Province.

	
 

	
 

	
4.3.12

	
MGW/BCP will develop a full five year plan which will include
  additional responsibilities not currently
  included or stipulated in this agreement, but will, at the time of
  insertion, have the agreement of both parties;

	
 

	
 

	
4.3.13

	
MGW/BCP will develop local Congolese
  business development plan as a part of the five year plan
  stipulated in paragraph 4.3.12. This sub-plan will provide the method through which,
  the partnership meets and exceeds the 15% participation goal for indigenous Congolese businesses for this
  agreement.

	
 

	
 

	
4.3.14

	
MGW/BCP will deliver the necessary
  technical expertise, products and materials to convert, whenever possible,
  the resources originating in Bas Congo, to a form that maximizes the benefits to
  Bas Congo and the region, including creating local manufacturing capabilities.

	
 

	
 

	
4.3.15

	
All contractual agreements and purchase
  orders over $10,000 USD for products or services, must be
  signed off on by the partner’s representatives.

	
 

	
 

	
4.3.16

	
When either partner plans to engage in any
  activity similar to or contrary to the elements or sectors
  covered by this agreement, the party intending to take the action must notify the
  other of the intent or consideration. This notification must be made immediately via
  fax or e-mail and telephone to the authorized representative of the partner.

	
 

	
 

	
4.3.17

	
The partnership will assuming all the costs
  of freight, insurance, packing, customs taxes and other costs
  possibly due under the legislation of the country of origin or country of
  designation;

	
 

	
 

	
4.3.18

	
MGW/BCP will also select potential
  employees for the partnership from existing employees of the
  Province. If an existing state owned business is taken over by the partnership, the
  existing employees will be given the right of first refusal for any new jobs
  created in a new business and will not be retrenched unless they choose to do so.

	
 

	
 

	
4.3.19

	
All goods and services referred to in paragraphs 4.3.17 and 4.3.18 of this agreement will comply
  with standards of quality set forth by international best practices and
  any commodity or other resource sold and not beneficiated in Bas
  Congo province will be sold at the prevailing market price at the time of
  the sale.

	
 

	
 

	

	
ARTICLE 5. PRICE AND TOTAL VALUE OF THE
AGREEMENT 

	

	
 

	
The value of this agreement can not be
  determined at this time. In due course, MGW will, as a part of
  this agreement, assess the value of the natural resources and other state owned assets that are
  a part of this agreement. The attached list of natural resources and state
  owned assets shall be deemed to be the capitalization of this public/private
  partnership. The partnership will have the right to use the assets depicted
  below to create
  off-take agreements, inducing strategic partners to participate in business
  vehicles or joint ventures with the public/private partnership. For the
  purpose of providing a minimum to the value of the agreement, the known bitumen
  reserves are used, those
  known reserves being 5 billion tons.

	
 

	

	
ARTICLE 6. TERMS OF DIVIDENDS AND INITIAL CAPITAL 

	

	
 

	
6.1

	
The dividends will be determined by the
  Board of Directors of the partnership. When dividends are declared, they shall be
  split as follows: 81% to MGW and 19% to
  BCP. It is expected that initially, there will be deficit spending in order
  to take care of some of the urgent
  needs of the province. If both parties agree to advance funds to the province for the purpose of
  initiating some of the urgently needed
  projects, the cost of the extended term of borrowing will be absorbed by the minority partner and those payments will
  be deducted from the dividends;

	
 

	
 

	
6.2

	
An agreement will be written detailing the
  cost associated with the urgent project and the proposed recapture rate for the advanced funds.

	
 

	
 

	
6.3

	
All funds associated with this agreement
  shall be held in a U.S. bank or any other bank chosen by the majority shareholders
  to this agreement. However, as the banking
  climate improves in DRC, the majority shareholders may decide to keep funds
  on deposit within the DRC. Note: The majority shareholders intend to keep funds within the DRC in an adequate amount to
  fund current expenses. When wire
  transfers are needed, payment for the wire transfer will be borne by the MGW/BCP
  partnership.

	
 

	
 

	
6.4

	
Initial capital will be the responsibility
  of both parties to this agreement. $3 million usd will be the
  initial capital. Funding for the projects will be derived from the borrowing that will be
  collaterised by the resources of the province. However, either party may loan
  funds to the partnership at an interest rate of 7%.

	
 

	
 

	
6.5

	
Both parties will participate in the
  development of the budget for the partnership and will also
  participate in the development of the operating plan which will, among other things,
  delineate the priorities and pro rata budgetary outlays;

	
 

	
 

	

	
ARTICLE 7. TERMS AND TIME OF PERFORMANCE

	

	
 

	
7.1

	
MGW will, within two weeks of the
  completion of the operating plan, complete the marketing plan. This marketing
  plan will include but not be limited to, the dates and cities for the road
  shows, the venue and times, the key people and organizations to be invited
  and the expected revenue from each venue. The marketing plan will also include visits to
  churches, conventions, trade shows, Investment
  bankers, Equity Funds and Pension Funds. The marketing plan will be updated on a quarterly basis with all
  modifications being communicated to both shareholders.

	
 

	
 

	
7.2

	
MGW will, on a best efforts basis, arrange
  the financing for all of the activities contemplated under
  this agreement. The issuance of tax exempt bonds in the amount of a minimum
  100 million usd is expected within seven months of contract signing.
  However, it is anticipated that funds from an initial public offering from the
  majority partner, MGW will be available for the initiation of this agreement;

	
 

	
 

	
7.3

	
MGW will comply with all the requirement of
  a reporting company as it manages this agreement. At a
  minimum, all reporting will be done on a quarterly basis to the shareholders,
  with audited financials being provided on an annual basis;

	
 

	
 

	
7.4

	
All pricing under this agreement will be
  charged at a rate equal to or less than the prevailing
  international prices unless there are local pricing data that can substitute for
  international pricing;

	
 

	
 

	
7.5

	
Should any damage to property or accident
  occur where there is a delay in delivery of critical services, products or
  materials, the majority partner shall assume the responsibility of correcting the
  problem without delay. If corrective action isn’t taken in a timely manner, and MGW refuses to act with the
  best interest of the province being
  demonstrated, the province may secure the necessary products and/or services at the expense of the majority
  shareholder;

	
 

	
 

	
7.6

	
All transported cargo (where applicable)
  will have its packaging numbered and will be accompanied
  with a Packing List which will contain, at least, name, dimensions and gross
  and net weight. Packing lists will be shipped in water-resistant envelopes.

	
 

	
 

	

	
ARTICLE 8. DURATION OF AGREEMENT

	

	
 

	
This agreement shall be in effect for
  fifteen years from the date of signing, which will be automatically renewed
  for an equal period, unless written notice is given at least 90 days prior to the expiry
  date. Some of the financing to be used by the company will be for the period of 15 years. If
  there is a cause for termination of this agreement, the province must find alternative
  financing to replace that which MGW would have arranged and in some cases, signed
  for.

	
 

	

	
ARTICLE 9. PENALTIES

	

	
 

	
9.1

	
Should either party not perform under the terms of this agreement,
  the offended party will be entitled to
  mobilization cost. Cost incurred in the performance of activities under this agreement, and liquidated damages will be
  determined by an arbitrator;

	
 

	
 

	
9.2

	
Should any of the parties, without a fair
  cause, cancel this agreement or fail to fulfill its obligations, except
  occurrence of Force Majeure, it will indemnify the other Party the cost of resulting
  damage.

	
 

	
 

	

	
ARTICLE 10. CONFIDENTIALITY

	

	
 

	
10.1

	
All information deemed confidential shall
  be identified and treated as such and may not be used for
  any other purpose other than that resulting from the contractual
  obligations;

	
 

	
 

	
10.2

	
The Parties are hereby obliged by the rules
  of confidentiality over this agreement for a period of 10
  (ten) years pursuant to issuance of Terms of Acceptance of this agreement;

	
 

	
 

	
10.3

	
All information of public knowledge or
  previously known by the parties and/or legal documentation
  shall not be considered as confidential;

	
 

	
 

	
10.4

	
Both parties are prohibited to make statements to third Parties about
  the nature and course of work related to
  agreed upon services, except when requested by any governing or self regulatory body with the approval of both
  parties;

	
 

	
 

	

	
 

	
 

	
ARTICLE 11. INSURANCE

	

	
 

	
 

	
Besides the other obligations contained in
  this agreement, it will be the entire responsibility of the
  partnership to obtain insurance for its representatives and personnel as well as their
  actions towards third persons, equipment and materials which make part of the scope of this
  agreement;

	
 

	

	
ARTICLE 12. RESCISSION

	

	
 

	
12.1

	
This agreement may be rescinded,
  unilaterally, irrespective of notice, amendment or judicial
  ruling under the following conditions:

	
 

	
 

	
12.1.1

	
Repeated complaints, notifications, multiple warnings issued by one
  party to the other due to faulty services
  and/or defects specifically related to this agreement;

	
 

	
 

	
12.2

	
A change of circumstances, conditions or
  legal situation, prevailing at the time of execution of this
  agreement and recognized by both Parties, if the Parties failed to arrive to
  agreement as for adjustment to the new situation;

	
 

	
 

	

	
ARTICLE 13. CONTRACT DOCUMENTATION FOR SHIPPED GOODS

	

	
 

	
 

	
Goods supplied under this contract will
  come along with the following documentation:

	
 

	
 

	
Original Bill of Lading (B/L)

	
1 copy

	
 

	
 

	
Copies of Bill of Lading (B/L)

	
2 copies

	
 

	
 

	
Certificate of Origin

	
1 copy

	
 

	
 

	
Manufacturer’s Certificate of Warranty Packaging 

	
1 copy

	
 

	
 

	
List

	
1 copy

	
 

	
 

	
Copy of Insurance Contract

	
1 copy

	
 

	
 

	
Copy of Inspection Certificate issued by
  BIVAC 

	
1 copy

	
 

	
 

	
Technical Documentation

	
1 copy

	
 

	
 

	
 

	

	
ARTICLE 14. DISSOLUTION

	

	
 

	
This agreement may be dissolved
  irrespective of protest, judicial or extrajudicial notification or
  injunction of the defaulting party, besides cases provided for by law, in the following cases:

	
 

	
 

	
14.1 

	
Where MGW, due to its fault, delays the
  fulfillment of deadlines agreed upon between the Parties for more than 60
  (Sixty) days, without written consent of the other Party;

	
 

	
 

	
 

	
 

	
14.2

	
Where either party to this agreement is
  declared bankrupt or filed for judicial bankruptcy composition;

	
 

	
 

	
 

	
 

	
14.3 

	
Where MGW defers in the payment of any
  installments due to the province by virtue of this agreement for more than
  30 (thirty) days, without the respective written agreement of the province;

	
 

	
 

	
 

	
 

	
14.4.

	
Where, for reasons of Force Majeure,
  promptly communicated to the other Party, the inability to fulfill the contractual
  obligations herein

	
 

	
 

	

	
ARTICLE 15. TERMINATION

	

	
 

	
The simple acts of tolerance of any of the
  Parties, related to default in any of the contractual
  obligations by the other Party, shall neither in anyway; imply the novation
  of this
  agreement, nor the relinquishment of any of the rights or intentions that the
  agreement
  confers on such a Party.

	
 

	

	
ARTICLE 16. FORCE MAJEURE

	

	
 

	
16.1

	
“Force Majeure’ shall be understood to be
  all and any circumstance that is beyond the reasonable control of the party
  affected by it, including natural occurrences or natural disasters such as floods,
  earthquakes, lightning and storms,
  wars, declared or undeclared, sabotage, uprising, acts of public enemies or banditry, civil disturbance, illegal and
  organized absenteeism of employees from
  work, leading the stoppage of work, and acts of public authorities„ including legislative restrictions in issuing
  foreign worker permits which are illicit or outside the scope of their competence;

	
 

	
 

	
16.2

	
Any delay in fulfillment or default in any
  of the contractual obligations by any of the Parties shall not
  constitute a violation of this agreement and shall be justified, if and in to the
  extent that they are caused by a Force Majeure situation;

	
 

	
 

	
1 6.3

	
The Party that evokes the “Force Majeure”
  situation shall inform the other Party on such fact, in writing, within the
  shortest possible time, while simultaneously taking all reasonable
  measures, within their reach, to remove, prevent the spread or reduce the
  effects of the “Force Majeure”;

	
 

	
 

	
16.4

	
The default or delay period, together with
  the period needed to repair any damages during this delay or losses resulting from
  it, shall be added to the period set forth herein for fulfillment of the said
  obligation and for fulfillment of any obligation related to it, and,
  consequently, shall be added to the validity of the agreement;

	
 

	
 

	
16.5

	
The interruption of activities or extension
  of the duration of the agreement period due to “Force
  Majeure” situations, may involve the review of the relevant contractual
  provisions, with a view to re-establishing the conditions that guaranteed the
  initial balance of the agreement in the technical, economic and financial areas;

	
 

	
 

	
16.6

	
Where, however, such “Force Majeure” or
  extension of the period of its duration requires the
  rescission of this agreement, both parties shall agree on the respective terms and
  conditions.

	
 

	
 

	

	
ARTICLE 17. ARBITRATION

	

	
 

	
17.1

	
All disputes End conflicts arising between
  the Parties on the validity, interpretation and application of the provisions
  of this agreement, shall be resolved amicably, by mutual agreement;

	
 

	
 

	
17.2

	
Where there is no agreement, the issue
  shall be resolved in accordance with the reconciliation and
  Arbitration of the United Nations Commission on International Trade Law (UNCITRAL);

	
 

	
 

	
17.3

	
The applicable law will be effective law of the Democratic Republic
  of the Congo, except when funds are
  brought into the DRC from another country. In that case, the law of that country shall prevail;

	
 

	
 

	
17.4

	
French and English will be used as the
  language of legal proceedings;

	
 

	
 

	
17.5

	
Arbitration costs shall be borne by
  whomever and in whatever form as may be decided by the
  arbitration court;

	
 

	
 

	
17.6

	
The decision of the court shall be final
  and binding on the Parties involved and shall not be subject
  to appeal or review by any judicial authority.

	
 

	
 

	

	
ARTICLE 18. CONTRACT LANGUAGE

	

	
 

	
This agreement is made in French and
  English, being both languages equally valid for interpretation of
  this agreement.

	
 

	

	
ARTICLE 19. ENTRY INTO FORCE

	

	
 

	
This agreement shall enter into force on
  the date of its signature by both Parties.

In witness whereof the Parties set their hands hereto, in 5
(five copies of equal content, 3 (three) in French and 2 (two) in English, in
the pree witnesses below, who for all legal purposes also set their hands hereto.

Bas Congo, Province, Democratic Republic of the Congo,
September 20, 2008

 By: /s/ Simon Mbatshi Batshia 

HIS EXCELLENCY, SIMON MBATSHI
BATSHIA, 

GOVERNOR OF BAS CONGO PROVINCE, DEMOCRATIC REPUBLIC OF THE CONGO

 By: /s/ Julius Jackson Sr. 

 Julius Jackson Sr.
MILLENNIUM GROUP WORLDWIDE Inc,
PRESIDENTexhibit10_1revcragmt.htm

    
Exhibit
10.1

       

       

      U.S.
BANK NATIONAL ASSOCIATION,

      Lender

      

      and

      

      PARK
CITY GROUP, INC.,

      Borrower

      

      

      REVOLVING
CREDIT AGREEMENT

      

      

      November
24, 2008

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      Table
of Contents

       

       

       

      
        	
                 
      

              	
                ARTICLE
      I DEFINITIONS

              

      

       

       

      
        	
                 
      

              	
                ARTICLE
      II AMOUNT AND TERMS OF LOAN

              

      

       

      
        	
                 
      

              	
                2.1

              	
                Revolving
      Loan 

              	
                 

              

      

      
        	
                 
      

              	
                2.2

              	
                Use of Loan
      Proceeds 

              	
                 

              

      

      
        	
                 
      

              	
                2.3

              	
                Initial Funding of
      Loan 

              	
                 

              

      

      
        	
                 
      

              	
                2.4

              	
                Funding in Advance of Completion
      of Merger Transaction 

              	
                 

              

      

      
        	
                 
      

              	
                2.5

              	
                Completion of Merger
      Transaction 

              	
                 

              

      

      
        	
                 
      

              	
                2.6

              	
                Credit
      Limit 

              	
                 

              

      

      
        	
                 
      

              	
                2.7

              	
                Notice and Manner of
      Borrowing 

              	
                 

              

      

      
        	
                 
      

              	
                2.8

              	
                Interest Accruals and
      Payments 

              	
                 

              

      

      
        
          	
                   
      

                	
                  2.9

                	
                  Note 

                	
                   

                
	 	2.10	Security 	 
	 	2.11 	Termination
      of Loan 	 
	 	2.12 	Late
      Fee Charges 	 
	 	2.13 	Additional
      Advances 	 

        

      

      
        
        

      

      
        
        

      

      
        
        

      

      
        
        

      

       

      
        	
                 
      

              	
                ARTICLE
      III CONDITIONS PRECEDENT

              

      

       

      
        	
                 
      

              	
                3.1

              	
                Conditions Precedent to Initial
      Advance 

              	
                 

              

      

      
        	
                 
      

              	
                3.2

              	
                Conditions Precedent to
      Subsequent Advances 

              	
                 

              

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      
        	
                 
      

              	
                ARTICLE
      IV REPRESENTATIONS AND WARRANTIES

              

      

       

      
        	
                 
      

              	
                4.1

              	
                Pending
      Litigation 

              	
                 

              

      

      
        	
                 
      

              	
                4.2

              	
                Title to
      Collateral 

              	
                 

              

      

      
        	
                 
      

              	
                4.3

              	
                Authority of
      Borrower 

              	
                 

              

      

      
        	
                 
      

              	
                4.4

              	
                Taxes and
      Assessments 

              	
                 

              

      

      
        	
                 
      

              	
                4.5

              	
                Financial
      Statements 

              	
                 

              

      

      
        	
                 
      

              	
                4.6

              	
                Operation of
      Business 

              	
                 

              

      

      
        	
                 
      

              	
                4.7

              	
                Labor Disputes and Acts of
      God 

              	
                 

              

      

      
        	
                 
      

              	
                4.8

              	
                Defaults and
      Violations 

              	
                 

              

      

      
        	
                 
      

              	
                4.9

              	
                No Conflicting
      Agreement 

              	
                 

              

      

       

      
        	
                 
      

              	
                ARTICLE
      V COVENANTS

              

      

       

      
        	
                 
      

              	
                5.1

              	
                Maintenance of
      Existence 

              	
                 

              

      

      
        	
                 
      

              	
                5.2

              	
                Maintenance of
      Records 

              	
                 

              

      

      
        	
                 
      

              	
                5.3

              	
                Maintenance of
      Properties 

              	
                 

              

      

      
        	
                 
      

              	
                5.4

              	
                Conduct of
      Business 

              	
                 

              

      

      
        	
                 
      

              	
                5.5

              	
                Compliance with
      Laws 

              	
                 

              

      

      
        	
                 
      

              	
                5.6

              	
                Information 

              	
                 

              

      

      
        	
                 
      

              	
                5.7

              	
                Reporting
      Requirements 

              	
                 

              

      

      
        	
                 
      

              	
                5.8

              	
                Fixed Charge
      Covenant 

              	
                 

              

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      
        	
                 
      

              	
                ARTICLE
      VI NEGATIVE COVENANTS

              

      

       

      
        	
                 
      

              	
                6.1

              	
                Distributions 

              	
                 

              

      

      
        	
                 
      

              	
                6.2

              	
                Mergers,
      Etc. 

              	
                 

              

      

      
        	
                 
      

              	
                6.3

              	
                Sale of
      Assets 

              	
                 

              

      

      
        	
                 
      

              	
                6.4

              	
                Investments 

              	
                 

              

      

      
        	
                 
      

              	
                6.5

              	
                Guaranty,
      Etc. 

              	
                 

              

      

      
        	
                 
      

              	
                6.6

              	
                Transactions with
      Affiliates 

              	
                 

              

      

       

      
        	
                 
      

              	
                ARTICLE
      VII EVENTS OF DEFAULT; REMEDIES

              

      

       

      
        	
                 
      

              	
                7.1

              	
                Events of Default Not Requiring
      Notice 

              	 

      

      
        	
                 
      

              	
                7.2

              	
                Events of Default Requiring
      Notice 

              	 

      

      
        	
                 
      

              	
                7.3

              	
                Cross
      Default 

              	
                 

              

      

      
        	
                 
      

              	
                7.4

              	
                Notice 

              	
                 

              

      

      
        	
                 
      

              	
                7.5

              	
                Remedies 

              	
                 

              

      

      
        	
                 
      

              	
                7.6

              	
                No Remedy
      Exclusive 

              	
                 

              

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      
        	
                 
      

              	
                ARTICLE
      VIII MISCELLANEOUS

              

      

       

      
        	
                 
      

              	
                8.1

              	
                Derivative
      Rights 

              	 

      

      
        	
                 
      

              	
                8.2

              	
                Amendments 

              	 

      

      
        	
                 
      

              	
                8.3

              	
                Binding
      Effect 

              	 

      

      
        	
                 
      

              	
                8.4

              	
                Waivers 

              	 

      

      
        	
                 
      

              	
                8.5

              	
                Survival 

              	 

      

      
        	
                 
      

              	
                8.6

              	
                Assignment 

              	 

      

      
        	
                 
      

              	
                8.7

              	
                Notices 

              	 

      

      
        	
                 
      

              	
                8.8

              	
                Severability 

              	 

      

      
        
          	
                   
      

                	
                  8.9

                	
                  Actions 

                	
                
	 	8.10	Participation 	 
	 	8.11 	No
      Partnership 	 
	 	8.12 	Interpretation 	 
	 	8.13 	Governing
      Law 	 
	 	8.14 	Conflicts 	 
	 	8.15 	Commissions 	 
	 	8.16 	Counterparts 	 
	 	8.17 	Attorney
      Fees 	 
	 	8.18 	Jury
      Waiver 	 
	 	8.19 	Final
      Expression 	 

        

      

      
        
        

      

      
        
        

      

      
        
        

      

      
        
        

      

      
        
        

      

      
        
        

      

      
        
        

      

      
        
        

      

      
        
        

      

      
        
        

      

      

        
          
             

          

          
             

            
              

            

          

          
             

          

        

      REVOLVING CREDIT
AGREEMENT

      

      

      THIS
REVOLVING CREDIT AGREEMENT (“Agreement”) is made and entered into effective as
of the 24 day
of November ,
2008, by and between U.S. BANK NATIONAL ASSOCIATION (“Lender”), and PARK
CITY GROUP, INC., a Nevada corporation (“Borrower”).

       

      R E C I T A L
S:

       

          A. Borrower
has applied to Lender for a revolving credit facility in the maximum line amount
of THREE MILLION DOLLARS ($3,000,000.00).

       

          B. Lender is
willing to make the loan to Borrower upon the terms, covenants and conditions
contained in this Agreement.

       

      NOW,
THEREFORE, in consideration of the mutual promises, covenants and agreements
contained in this Agreement, Borrower and Lender mutually agree as
follows:

       

      ARTICLE
I

       

      DEFINITIONS

       

      Unless
the context clearly indicates otherwise, certain terms used in this Agreement
shall have the meanings set forth below:  To the extent not defined in
this Article I, unless the context otherwise requires, all other terms contained
in this Agreement shall have the meanings attributed to them in the Utah
enactment of the Uniform Commercial Code, Chapter 9a, Title 70A, Utah Code
Annotated (1953), as amended (the “UCC”), to the extent the same are used or
defined therein.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

       

      “Accounts” shall mean
all accounts receivable of Borrower, including proceeds thereof.

       

      “Advances” shall mean
all extensions of credit made by Lender to or for the account of Borrower under
the terms of this Agreement.

       

      “Affiliate” shall mean
an individual or an entity that, directly or indirectly, owns, controls,
manages, or that is under common ownership, control or management with, Borrower
or the Guarantor.

       

      “Assignments of Deposit
Account” shall mean the separate Assignments of Deposit Account, dated
the same date as this Agreement, executed by Borrower, Riverview and the
Guarantor in favor of Lender, by which each of them assigns to Lender its
interests as the owner of one or more deposit accounts established by them with
Lender as collateral for the Loan.

       

      “Collateral” shall
mean:  (1) the accounts and other items described in Security
Agreement, owned by Borrower and that, pursuant to the Security Agreement are
pledged to Lender to secure payment of Borrower’s obligations under the Loan;
and (2) the deposit accounts and the interest accrued thereon that are pledged
to Lender by Borrower, Riverview and the Guarantor under the terms of the
Assignments of Deposit Accounts to secure payment of Borrower’s obligations
under the Loan.

       

      “Completion of Merger
Transaction” shall be deemed to have occurred when all of the following
have been completed, to Lender’s satisfaction:  (1) Borrower shall
have received approval from the SEC and all other applicable governmental
agencies for the completion of the Merger Transaction; (2) the required waiting
period imposed by the SEC has expired; (3) the shareholders of Borrower and
Prescient have voted in favor of completion of the Merger Transaction; and (4)
Borrower has delivered to Lender a time-stamped copy of the signed Articles of
Merger filed with the Secretary of State of the State of Delaware giving effect
to the Merger Transaction.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

       

      “Control Account”
shall mean the money market deposit bank control account established in the name
of Borrower with Lender into which certain proceeds of the Loan are to be
deposited pending Completion of the Merger Transaction.  No funds may
be withdrawn from the Control Account without the consent of
Lender.

       

      “Credit Limit” shall
mean THREE MILLION DOLLARS ($3,000,000.00), the maximum line amount of the Loan
that may be outstanding at any time.  During the term of the Loan, the
Credit Limit shall reduce, as described in Section 2.1 of this
Agreement.

       

      “Default Interest
Rate” shall mean a floating rate of interest equal to the rate of
interest specified in the Note, plus five percent (5.0%), per annum, calculated
on the basis of a three hundred sixty (360) day year for the actual number of
days elapsed.

       

      “Event of Default”
shall mean the occurrence and continuance of any of the events listed in Section
7.1 and 7.2 of this Agreement.

       

      “Guarantor” shall mean
Randall K. Fields.

       

      “Guaranty” shall mean
the Guaranty executed by the Guarantor in favor of Lender by which the Guarantor
guarantees the payment and performance of all of Borrower’s obligations under
the Loan.

       

      “Loan” shall mean the
revolving line of credit advanced by Lender to Borrower pursuant to the terms of
this Agreement in a maximum line amount equal to the Credit Limit.

       

      “Loan Documents” shall
mean the following documents executed in conjunction with and supporting this
Agreement:  the Note; the Security Agreement; the Assignments of
Deposit Accounts; Uniform Commercial Code Financing Statement; the Guaranty; and
any other documents between Lender and Borrower evidencing or securing the
Loan.  (All of the Loan Documents are incorporated herein by
reference.)

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

       

      “Maturity Date” shall
mean __November 24____, 2010_ (the second anniversary date of this Agreement),
the date all amounts evidenced by the Note become due and payable.

       

      “Merger Transaction”
shall mean the proposed transaction under which Borrower shall either acquire
all of the issued an outstanding shares of stock of Prescient, or become the
surviving entity in a merger of Borrower and Prescient.

       

      “Note” shall mean the
Promissory Note (Revolving Line of Credit), dated the same date as this
Agreement, in the maximum principal amount of the Loan, executed by Borrower, as
maker, and payable to the order of Lender, as payee.

       

      “Prescient” shall mean
Prescient Applied Intelligence, Inc., a Delaware corporation.

       

      “Principal
Indebtedness” shall mean, at any given point in time during the term of
this Agreement, the aggregate outstanding principal balance of the Note,
together with all additional advances made by Lender with respect to the Loan
(whether pursuant to this Agreement or any of the Loan Documents), if any, and
all additional payments provided for in the Loan Documents.

       

      “Riverview” shall mean
Riverview Financial Corp., a Utah corporation, which is under common control and
management with Borrower.

       

      “Riverview Loan” shall
mean the loan in the original principal amount of ONE MILLION DOLLARS
($1,000,000.00) granted by Lender to Riverview.

       

      “SEC” shall mean the
Securities and Exchange Commission.

       

      “Security Agreement”
shall mean the Security Agreement, dated the same date as this Agreement,
executed by Borrower, as debtor, in favor of Lender, as secured party, pursuant
to which Borrower grants to Lender a security interest in the Accounts and the
other collateral described in the Security Agreement, as security for the
payment of the Loan.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

       

      “Termination Date”
shall mean _November 24__, 2010__ (the second anniversary date of this
Agreement), the date Lender’s obligations to fund Advances under this Agreement
lapses.

       

      ARTICLE
II

       

      AMOUNT AND TERMS OF
LOAN

       

      2.1 Revolving
Loan.  Lender,
upon the terms, covenants and conditions set forth in this Agreement, shall
extend to Borrower a revolving credit facility up to the maximum principal
amount of the Credit Limit.  Each Advance shall be added to the
outstanding Principal Indebtedness of the Loan.  At no time may the
aggregate outstanding Principal Indebtedness of the Loan exceed the Credit
Limit.  Borrower may draw on and utilize the available Credit Limit
during the period from the date of this Agreement up to, but not including, the
Termination Date.  Lender shall have no obligation to fund any Advance
which, when added to the outstanding Principal Indebtedness of the Loan on the
date of such request, would cause such outstanding Principal Indebtedness to
exceed the total Credit Limit, or which is made on or after the Termination
Date.  The Credit Limit shall be reduced as the principal balance of
the Loan is repaid and Borrower, or the Guarantor, obtains a release of certain
of the Collateral.  For example, if the Credit Limit were
$3,000,000.00 and Borrower reduced the outstanding principal balance of the Loan
to $2,000,000.00, and Borrower and the Guarantor requested the release of the
deposit account pledged by the Guarantor to Lender under the Guarantor’s
Assignment of Deposit Account (which account is in the minimum amount of
$1,000,000.00), the Credit Limit would be reduced by the dollar amount of the
Collateral released and the reduced Credit Limit would become
$2,000,000.00.

       

      2.2 Use of Loan
Proceeds.  The
proceeds of the Loan shall be used by Borrower as capital for Borrower’s
business, including the completion of the Merger Transaction with
Prescient.

       

      2.3 Initial Funding of
Loan.  Concurrently
with the execution of this Agreement, Lender shall make available an Advance for
the account of Borrower in the amount of up to THREE HUNDRED EIGHTEEN THOUSAND
DOLLARS ($318,000.00).

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

       

      2.4 Funding in Advance of
Completion of Merger Transaction.  Lender
shall make an Advance in the amount of TWO MILLION FIVE HUNDRED THOUSAND DOLLARS
($2,500,000.00) prior to the Completion of Merger Transaction, subject to the
following:

       

      (a) SEC Preliminary
Approval. Borrower shall have received a “no comment” response from the
SEC with respect to the proxy filings regarding the Merger Transaction;
and

       

      (b) Control
Account.  The proceeds of the Advance are deposited into the
Control Account.

       

      2.5 Completion of Merger
Transaction.  Provided
no Event of Default has occurred or is then continuing:

       

      (a) Release of Funds in Control
Account.  Prior to the Completion of Merger Transaction, Lender
shall release to Borrower funds necessary only for the required purchase of
outstanding shares of Prescient stock in the approximate amount of ONE MILLION
THREE HUNDRED FIFTY-SIX THOUSAND EIGHT HUNDRED FIFTY-THREE DOLLARS
($1,356,853.00), but in no event greater than ONE MILLION FIVE HUNDRED THOUSAND
DOLLARS ($1,500,000.00).

       

      (b) Pay-off of Riverview
Loan.  At the Completion of Merger Transaction, Borrower shall
retire its debt to Riverview (in the approximate amount of $1,000,000.00 plus
accrued interest), and Riverview uses such payment to pay to Lender all amounts
owing to Lender under the Riverview Loan in full.

       

      (c) Releases by
Lender.  At the Completion of Merger Transaction, once the
Riverview Loan is paid in full:  (1) Lender shall permit the remaining
funds deposited into the Control Account to be released to Borrower; (2) Lender
shall release the security interests in the Accounts and the other collateral
granted under the Security Agreement; provided that Riverview and the Guarantor
have pledged to Lender, and Lender is holding under the terms of the Assignments
of Deposit Account, pledged deposits in the minimum aggregate amount of TWO
MILLION EIGHT HUNDRED EIGHTEEN THOUSAND DOLLARS ($2,818,000.00); and (3) Lender
shall terminate the Guaranty.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      2.6 Credit
Limit.  Following
the Completion of Merger Transaction, at no time shall the Credit Limit exceed
the amount of cash collateral held by Lender to secure payment of the
Loan.  Borrower may provide additional cash collateral to Lender to
increase the Credit Limit, provided that at no time shall the Credit Limit
exceed THREE MILLION DOLLARS ($3,000,000.00).

       

      2.7 Notice and Manner of
Borrowing.  After
the initial funding of the Loan, Borrower shall give Lender prior written notice
or notice by facsimile (effective upon receipt) of any Advances under this
Agreement, specifying the date and amount thereof.  Randy Fields, on
behalf of Borrower, may make a request for an Advance under this
Agreement.  In the event Lender determines to approve the requested
Advance, not later than 5:00 p.m., Park City, Utah time, on the date of such
Advance and upon fulfillment of the applicable conditions set forth in Article
III, Lender will make such Advance available to Borrower by transferring the
amount thereof to Borrower’s account or accounts with Lender designated by
Borrower.

       

      2.8 Interest Accruals and
Payments.  During
the term of the Loan, interest shall accrue on the outstanding Principal
Indebtedness and Borrower shall make payments to Lender as follows:

       

      (a) Interest
Rate.  The outstanding Principal Indebtedness shall bear
interest from the date of each Advance at the adjustable rate of interest as
described in the Note.

       

      (b) Interest Payment
Dates.  Accrued interest, computed in accordance with the
foregoing, shall be due and payable on a monthly basis, as described in the
Note.

       

      (c) Default Interest
Rate.  During any period of time in which an Event of Default
has occurred and is continuing, interest shall accrue at the Default Interest
Rate.

       

      2.9 Note.  All
Advances made by Lender pursuant to this Agreement shall be evidenced by, and
repaid with interest in accordance with, the Note.  The Note shall be
dated the date of this Agreement, shall be payable to the order of Lender and
shall mature on the Maturity Date.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

       

      2.10 Security.  The
Loan, as evidenced by the Note, shall be secured by the following:

       

      (a) Security
Agreement.  The Note shall be secured by the Security Agreement
in form and content satisfactory to Lender.  The Security Agreement
shall be executed by Borrower, as debtor, and shall constitute a first position
security interest on and against the Accounts and the other collateral described
therein.

       

      (b) Assignments of Deposit
Account.  The Note shall also be secured by the Assignments of
Deposit Account in form and content satisfactory to Lender.  A
separate Assignment of Deposit Account shall be executed by Riverview (pledging
a deposit account in the minimum amount of $2,335,000.00), and by the Guarantor
(pledging a deposit account in the minimum amount of $483,000.00).

       

      (c) Guaranty.  The
Note shall be guaranteed by the Guarantor pursuant to the Guaranty, in form and
content satisfactory to Lender, executed by the Guarantor in favor of
Lender.

       

      (d) Set-off.  As
additional security for the payment of Borrower’s obligations to Lender under
the Loan (as described in this Agreement and the Loan Documents), Borrower
hereby grants to Lender a security interest in, a lien on and an express
contractual right to set off against all depository account balances, cash and
any other property of Borrower now or hereafter in the possession of Lender and
the right to refuse to allow withdrawals from any account.  Lender
may, at any time upon the occurrence of an Event of Default (notwithstanding any
notice requirements or grace/cure periods under this Agreement or any of the
Loan Documents) set-off against the obligations of Borrower to Lender whether or
not such obligations (including future installments) are then due or have been
accelerated, all without any advance or contemporaneous notice or demand of any
kind to Borrower, such notice and demand being expressly waived.  Any
funds on deposit with Lender held in trust for the benefit of third-parties
shall be excluded from the foregoing right of set-off.

       

      (e) Additional Security
Agreements.  Borrower shall execute and deliver to Lender such
additional security agreements and financing statements with respect to the
Collateral, as may reasonably be requested by Lender, all in form and content
satisfactory to Lender, as additional security for the Loan.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      2.11 Termination of
Loan.  If
the Completion of Merger Transaction does not occur within five (5) days after
Lender releases from the Control Account the funds described in Section 2.5(a)
above, Lender shall have the right to repay the Loan from the remaining funds
held in the Control Account and from the deposit accounts described in the
Assignments of Deposit Account, whereupon the Loan shall terminate.

       

      2.12 Late Fee
Charges.  If
any payment required by this Agreement is not paid when due, Borrower shall pay
to Lender a late fee charge as specified in the Note.

       

      2.13 Additional
Advances

       

      .  In
the event Lender, in Lender's sole discretion, and pursuant to the provisions of
this Agreement, but without obligation, makes additional advances to or for the
account of Borrower, the sums so advanced, together with interest thereon at the
same rate as provided in the Note, shall be deemed added to the Principal
Indebtedness of the Loan on the same terms as set forth in the Note and shall be
secured by the Loan Documents.

       

      ARTICLE
III

       

      CONDITIONS
PRECEDENT

       

      3.1 Conditions Precedent to
Initial Advance.  Prior
to the funding of the initial Advance to Borrower, and as a condition precedent
to such Advance, all of the following conditions must be satisfied as determined
by Lender, in Lender’s sole discretion:

       

      (a) Authority.  Borrower
shall deliver to Lender certified copies of its organizational documents,
together with any and all amendments thereto.  Borrower shall also
provide Lender with:  (1) a certificate of good standing relating to
it issued by its state of origin; and (2) a resolution authorizing it to enter
into the transactions contemplated by this Agreement.  Such
resolutions shall designate and authorize the individual or individuals
executing the Loan Documents in behalf of Borrower to execute and deliver the
same.

       

      (b) Loan
Documents.  Borrower and the Guarantor shall execute and
deliver to Lender each of the Loan Documents requiring their
signatures.

       

      (c) Financial
Statements.  Borrower and the Guarantor shall deliver to Lender
copies of such financial statements and pro forma financial statements
concerning Borrower and the Guarantor, in form acceptable to Lender, as Lender
may request.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      (d) Costs.  Borrower
shall reimburse Lender for all costs incurred by Lender to secure the Loan,
including, without limitation, closing and filing costs, document preparation
fees, and attorney fees.

       

      (e) Merger
Transaction.  Borrower shall provide Lender with copies of
documentation relating to the Merger Transaction, including, but not limited to,
merger agreement, plan of merger, articles of merger, and filings with
governmental authorities.

       

      (f) Deposit
Accounts.  Borrower, Riverview and the Guarantor shall have
established the deposit accounts that are the subject of the Assignments of
Deposit Account, which accounts shall have the following minimum
balances:  (1) Riverview:  $2,335,000.00, which account
shall be funded concurrently with the initial funding of the Loan; and (2) the
Guarantor:  $483,000.00, which account shall be funded concurrently
with the initial funding of the Loan.

       

      (g) Miscellaneous
Items.  Borrower shall deliver to Lender such other items,
documents and evidences pertaining to the Loan as may reasonably be requested by
Lender or Lender’s counsel.

       

      3.2 Conditions Precedent to
Subsequent Advances.  The
obligation of Lender to make each Advance (including the first Advance following
execution of this Agreement) shall be subject to the satisfaction, as of the
date of such Advance request, of the following conditions:

       

      (a) Loan
Current.  There shall be no material default of any material
term, covenant or condition contained in this Agreement, in any of the Loan
Documents or in any other promissory note or security agreement executed by
Borrower in favor of Lender.

       

      (b) Request for
Advance.  Lender shall have received the written request for an
Advance in compliance with the requirements of Section 2.7.

       

      (c) Misrepresentation.  There
shall be no material misstatement in any material representation or warranty
made by Borrower or the Guarantor to Lender in this Agreement, in any Loan
Document or in any material information submitted to Lender pursuant to this
Agreement or any of the Loan Documents.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      (d) No
Default.  No Event of Default shall have occurred or be
continuing.

       

      (e) Advance
Amount.  The amount of the requested Advance(when funded) shall
not cause the outstanding balance of the Loan to exceed the then existing Credit
Limit.

       

      (f) Collateral.  All
Collateral for the Loan (less any releases of Collateral granted by Lender under
the terms of this Agreement) shall continue to be encumbered by valid liens and
securities in favor of Lender for the full amount of the Loan.

       

      ARTICLE
IV

       

      REPRESENTATIONS AND
WARRANTIES

       

      Borrower
represents and warrants to Lender as follows:

       

      4.1 Pending
Litigation.  Except
as disclosed to Lender in writing, there is no action, suit or proceeding
pending, including without limitation, condemnation proceedings, or, to the best
of Borrower’s knowledge, threatened, against or affecting Borrower, the
Guarantor or the Collateral, in any court of law or equity, or before any
governmental or quasi-governmental instrumentality, whether federal, state,
county or municipal which may result in any material adverse change in the
business prospects, profits or condition of Borrower or the
Guarantor.

       

      4.2 Title to Collateral.  Borrower
has or concurrently with the execution of this Agreement shall acquire good and
marketable title in and to the Collateral.  The Collateral is, or at
closing of the Loan shall become, free and clear of all liens and encumbrances
other than the security interests in favor of Lender granted in the Security
Agreement and the Assignments of Deposit Account.

       

      4.3 Authority of
Borrower.  Borrower
is a corporation, duly formed, validly existing and in good standing under the
laws of the State of Nevada and has qualified to do business in the State of
Utah.  Borrower possesses all requisite power and authority to enter
into this Agreement, to borrow money as contemplated hereby and to carry out the
terms, covenants and conditions of the Loan Documents.  Borrower’s
execution, delivery and performance of this Agreement and the Loan Documents
have been duly authorized and do not violate the provisions of any of its
organizational documents.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      4.4 Taxes and
Assessments.  No
taxes, assessments or other governmental charges upon Borrower or any of its
assets are delinquent.  The same shall be paid prior to becoming
delinquent.  However, Borrower shall have the right to contest the
same diligently and in good faith so long as Borrower’s assets do not thereby
risk being forfeited by tax sale, foreclosure upon a tax lien or
otherwise.

       

      4.5 Financial
Statements.  Any
and all financial statements previously delivered to Lender by Borrower, except
as may be disclosed in the notes thereto, accurately represent the financial
condition of Borrower and reflect accurately the assets and properties of
Borrower.  No material adverse change has occurred in the financial
condition of Borrower as reflected in the financial statements since the dates
thereof.

       

      4.6 Operation of
Business.  Borrower
possesses all licenses, permits, franchises, patents, copyrights, trademarks,
and trade names, or rights thereto, necessary to conduct its business
substantially as now conducted and as presently proposed to be conducted, and
Borrower is not in violation of any valid rights of others with respect to any
of the foregoing.

       

      4.7 Labor Disputes and Acts of
God.  Neither
the business nor the properties of Borrower or the Guarantor is affected by any
fire, explosion, accident, strike, lockout or other labor dispute, drought,
storm, hail, earthquake, embargo, act of God or of the public enemy or other
casualty (whether or not covered by insurance) materially and adversely
affecting such business or properties or the operation of their
business.

       

      4.8 Defaults and
Violations.  Borrower
is not in default or in violation with respect to any final judgment, writ,
injunction, decree or regulation of any court or any federal, state, municipal
or other governmental department, commission, board, bureau, agency or
instrumentality, domestic or foreign, which has jurisdiction over the property
of Borrower.

       

      4.9 No Conflicting
Agreement.  Neither
the execution and delivery of any of the Loan Documents by Borrower nor the
compliance by Borrower with the terms, covenants and conditions of the Loan
Documents will conflict with, or constitute a default under any agreement or
other instrument to which Borrower is bound.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

       

      ARTICLE
V

       

      COVENANTS

       

      So long
as the Note remains unpaid, Borrower hereby affirmatively covenants with Lender
as follows:

       

      5.1 Maintenance of
Existence.  Borrower
shall preserve and maintain Borrower’s existence and good standing in the
jurisdiction of Borrower’s organization, and qualify and remain qualified as a
foreign corporation in each jurisdiction where Borrower is doing business or in
which such qualification is required.

       

      5.2 Maintenance of
Records.  Borrower
shall keep adequate records and books of account, in which complete entries will
be made in accordance with generally accepted accounting principles consistently
applied, reflecting all financial transactions of Borrower.

       

      5.3 Maintenance of
Properties.  Borrower
shall maintain, keep and preserve all of Borrower’s properties (tangible and
intangible) necessary or useful in the proper conduct of Borrower’s business in
good working order and condition, ordinary wear and tear excepted.

       

      5.4 Conduct of
Business.  Borrower
shall continue to engage in a business of the same general type as conducted by
it on the date of this Agreement.

       

      5.5 Compliance with
Laws.  Borrower
shall comply in all respects with all applicable laws, rules, regulations, and
orders, such compliance to include, without limitation, paying before the same
become delinquent all taxes, assessments, and governmental charges imposed upon
Borrower or on Borrower’s assets and property.

       

      5.6 Information.  Borrower
shall furnish to Lender with reasonable promptness such data and information,
financial and otherwise, concerning Borrower and the Guarantor as from time to
time may reasonably be requested by Lender for purposes of administering
compliance with this Agreement and the Loan Documents.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      5.7 Reporting
Requirements.  Borrower
shall furnish to Lender:

       

      (a) Quarterly Financial
Statements.  As soon as available and in any event within
forty-five (45) days after the end of fiscal quarter, company prepared balance
sheets of Borrower as of the end of such period, statements of income of
Borrower for the period commencing at the end of the previous fiscal year and
ending with the end of such period and a statement of retained earnings for the
portion of the fiscal year of Borrower ended with the last day of such period,
all in reasonable detail and stating in comparative form the respective figures
for the corresponding date and period in the previous fiscal
year.  All such reports and information shall be prepared in
accordance with generally accepted accounting principles consistently applied
and certified by the chief financial officer of Borrower (subject only to
year-end adjustments).

       

      (b) Annual Financial
Statements.  As soon as available and in any event within one
hundred twenty (120) days after the end of Borrower’s fiscal year, CPA audited
fiscal year-end financial statements of Borrower as follows:  (1) a
balance sheet as of the end of such fiscal year; (2) a statement of income and
retained earnings for such fiscal year; (3) a statement of change in financial
position for such fiscal year; and (4) a statement of retained earnings for such
fiscal year.  All such financial statements shall be in reasonable
detail, shall state in comparative form the respective figures for the
corresponding date and period in the prior fiscal year, and shall be prepared in
accordance with generally accepted accounting principles consistently applied
and certified by the chief financial officer of Borrower (subject only to
year-end adjustments).

       

      (c) Other
Report.  On request of Lender and so long as the Security
Agreement remains in place, accompanying each request for an Advance, and
monthly (within thirty (30) days after the end of each month an accounts
receivable aging report relating to the Accounts; and (2) an accounts payable
aging report relating to Borrower.

       

      (d) Tax
Returns.  Within thirty (30) days after filing and in any event
by October 31st of each
year, Borrower shall submit to Lender a copy of all federal, state and local tax
returns filed by Borrower, together with all schedules and attachments
thereto.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      (e) Notice of
Litigation.  Promptly after the commencement thereof, notice of
all actions, suits, and proceedings before any court or governmental department,
commission, board, bureau, agency, or instrumentality, domestic or foreign,
affecting Borrower or the Guarantor, which, if determined adversely to them,
could have a material adverse effect on the financial condition, assets,
properties, or operations of Borrower or the Guarantor.

       

      (f) Notice of Events of
Default.  As soon as possible and in any event within twenty
(20) business days after Borrower learns or is otherwise notified of the
occurrence of an Event of Default, a written notice setting forth the details of
the occurrence of such Event of Default and the action which is proposed to be
taken by Borrower with respect thereto.

       

      5.8 Fixed Charge
Covenant.  As
of the one-year anniversary of the initial funding of the Loan and thereafter,
Borrower shall maintain a fixed charge coverage ratio of no less than 1.15 to
1.00, calculated by the use of generally accepted accounting principles
consistently applied and calculated semiannually on a trailing 12-month
basis.  The fixed charge coverage ratio shall be calculated by
dividing (a) the sum of earnings before interest expense, taxes, depreciation
expense and amortization expenses (EBITDA), less cash taxes, less maintenance
capital expenditures at 50% of depreciation expense, less cash withdrawals or
cash dividends by (b) the sum of current maturing portion of non-subordinated
long-term debt and interest expense.

       

      ARTICLE
VI

       

      NEGATIVE
COVENANTS

       

      So long
as the Note remains unpaid, Borrower hereby covenants with Lender as
follows:

       

      6.1 Distributions.  Borrower
shall not: (a) declare or pay any dividends; (b) purchase, redeem, retire or
otherwise acquire for value any of Borrower’s shareholder’s interests now or
hereafter outstanding; or (c) make any distribution of assets to Borrower’s
shareholders as such, whether in cash, assets, membership interests or
obligations of Borrower, if as a result of any such dividends, distribution,
purchase, redemption, retirement or other transaction, Borrower is not in
compliance with the financial covenant stated in Section 5.8 of this
Agreement.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      6.2 Mergers,
Etc. Except
for the Merger Transaction, Borrower shall not merge or consolidate with, or
sell, assign, lease or otherwise dispose of (whether in one transaction or in a
series of transactions) all or substantially all of Borrower’s assets (whether
now owned or hereafter acquired), or acquire all or substantially all of the
assets or the business of any other entity without Lender’s prior written
approval.  In any such circumstance, Borrower shall first have: (a)
provided Lender with ninety (90) days prior written notice of such proposed
transaction; (b) submitted to Lender a business plan in form and content
reasonably satisfactory to Lender with respect to such proposed transaction; and
(c) provided Lender with a reasonable opportunity to investigate and approve the
creditworthiness of the other party or parties to the proposed
transaction.

       

      6.3 Sale of
Assets.  Borrower
shall not, without the prior written consent of Lender, sell, lease, assign,
transfer or otherwise dispose of any of Borrower’s now owned or hereafter
acquired assets or property, except:  (a) inventory disposed of in the
ordinary course of business; (b) the sale or other disposition of assets no
longer used or useful in the conduct of Borrower’s business.

       

      6.4 Investments.  Borrower
shall not, without the prior written consent of Lender, make any loan or advance
to any individual or entity, or purchase or otherwise acquire any capital stock,
assets, obligations or other securities of, make any capital contribution to, or
otherwise invest in or acquire any interest in any entity not wholly controlled
by Borrower.

       

      6.5 Guaranty,
Etc.  Borrower
shall not, without the prior written consent of Lender, assume, guarantee,
endorse or otherwise be or become directly or contingently responsible or liable
for obligations of others, except guaranties by endorsement of negotiable
instruments for deposit or collection or similar transactions in the ordinary
course of business.

       

      6.6 Transactions with
Affiliates.  Borrower
shall not enter into any transaction including, without limitation, the
purchase, sale or exchange of assets or property or the rendering of any
service, with any Affiliate, except in the ordinary course of and pursuant to
the reasonable requirements of Borrower’s business and upon fair and reasonable
terms no less favorable to Borrower than would obtain in a comparable
arm’s-length transaction with a third-party.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      

       

      ARTICLE
VII

       

      EVENTS OF DEFAULT;
REMEDIES

       

      7.1 Events of
Default Not
Requiring Notice.  The
occurrence of any of the following events shall constitute an Event of Default
under this Agreement and the Loan Documents without the requirement of notice
from Lender to Borrower:

       

      (a) Nonpayment.  The
failure of Borrower to pay when due any principal, interest or other charge with
respect to the Principal Indebtedness, or the amount of any fee or payment
required of Borrower under this Agreement or any of the Loan
Documents.

       

      (b) Assignment.  Borrower,
without the prior written consent of Lender:  (1) assigns this
Agreement or any disbursement or advance to be made hereunder, or any interest
therein to any person or entity; (2) applies the proceeds of any disbursement of
Loan proceeds in any manner not specified and approved by Lender; or (3)
voluntarily or involuntarily conveys, transfers, assigns, mortgages, pledges or
encumbers the Collateral in any way other than as provided in this
Agreement.

       

      (c) Unauthorized Use of
Collateral.  Borrower, prior to repayment of the Loan, and
without Lender’s prior written consent, which consent will not be unreasonably
withheld or delayed, causes or permits the Collateral to be used for any purpose
other than as approved by Lender.

       

      (d) Voluntary Bankruptcy or
Insolvency.  The occurrence and continuance of any of the
following with respect to Borrower or the Guarantor:  (1) the filing
by either of them of a petition in bankruptcy or for reorganization or for an
arrangement under any bankruptcy or insolvency law or for a receiver or trustee
for any of their respective properties; (2) an assignment by either of them for
the benefit of creditors or an admission by either of them, in writing, of an
inability to pay their respective debts as they become due; or (3) the entry of
a judgment of insolvency against either of them by any state or federal court of
competent jurisdiction.

       

      (e) Misrepresentation.  Any
representation or warranty made by Borrower in connection with an application
for the Loan, or in this Agreement or any of the Loan Documents is or proves to
have been materially incorrect when made.

       

      (f) Default of
Covenants.  The occurrence and continuance of a material
default by Borrower under any material term, covenant or condition contained in
this Agreement or any of the Loan Documents, or by the Guarantor under the
Guaranty.

       

      (g) Other Events of
Default.  The occurrence of any other event or condition
described in this Agreement or the Loan Documents which states that the
occurrence thereof shall constitute an immediate Event of Default.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      7.2 Events of Default Requiring
Notice.  The
occurrence and continuance of any of the following events shall constitute an
Event of Default under this Agreement and the Loan Documents following written
notice from Lender to Borrower as described below:

       

      (a) Termination of
Operation.  Borrower ceases business operation or otherwise
substantially terminates any of their respective business operations material to
their ongoing existence.

       

      (b) Default under Loan
Documents.  The occurrence and continuance of an event of
default under any of the Loan Documents.

       

      (c) Security
Agreement.  If at any time after the date hereof and for any
reason:  (1) any of the Security Agreement or the Assignments of
Deposit Accounts ceases to create a valid and perfected first priority position
security interest in and to the Collateral described therein (unless voluntarily
released by Lender); (2) any of the Security Agreement or the Assignments of
Deposit Account ceases to be in full force and effect or is declared null and
void (unless voluntarily terminated by Lender); (3) the validity or
enforceability of the Security Agreement or either of the Assignments of Deposit
Account is contested by Borrower or the Guarantor (as applicable), or Borrower
or the Guarantor (as applicable) denies that it has any further liability or
obligation under the Security Agreement; (4) Borrower fails to perform any of
Borrower’s obligations under the Security Agreement or the Assignment of Deposit
Account signed by Borrower; or (5) the Guarantor fails to perform any of his
obligations under the Guaranty or the Assignment of Deposit Account signed by
the Guarantor.

       

      (d) Litigation.  The
institution of any litigation or administrative proceeding involving Borrower,
this Agreement, any of the Note, the Security Agreement or the Assignments of
Deposit Account, any of the other Loan Documents, or the Collateral which has or
may have a materially adverse effect:  (1) on the ability of Borrower
or the Guarantor to perform any of the obligations under this Agreement or any
of the Loan Documents; (2) on the ability of Borrower or the Guarantor (as
applicable) to own, operate or use the Collateral or any part thereof for the
purposes intended; or (3) on the value of the Collateral as security for the
Note; unless such proceedings shall have been terminated, dismissed or bonded
against to Lender’s reasonable satisfaction within forty-five (45) days after
the commencement thereof.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      (e) Involuntary Bankruptcy or
Receivership.  The occurrence and continuance of any of the
following with respect to Borrower or the Guarantor:  (1) the filing
against either of them of a petition in bankruptcy or for reorganization or for
an arrangement under any bankruptcy or insolvency law or for a receiver or
trustee for any of their respective properties which is not dismissed within
sixty (60) days; (2) the appointment of a receiver or trustee of any of their
respective properties which is not discharged within sixty (60) days; or (3) the
attachment or execution by levy against any substantial portion of any of their
respective properties which is not discharged within sixty (60)
days.

       

      (f) Default under Riverview
Loan.  The occurrence and continuance beyond any applicable
cure period of an event of default under the Riverview Loan.

       

      (g) Material Adverse
Change.  The reasonable determination by Lender that a material
adverse change has occurred in the financial condition of Borrower or the
Guarantor since delivery of the last dated financial statements to Lender, which
is not cured to Lender’s reasonable satisfaction within fifteen (15) days after
written notice to Borrower.

       

      (h) Payment
Impairment.  Any circumstance which, in the reasonable judgment
of Lender, impairs the prospect of payment of the Principal Indebtedness in full
when and as it becomes due, or otherwise causes Lender to reasonably deem itself
insecure.

       

      7.3 Cross
Default.  A
material default by Borrower under any material term, covenant or condition of
this Agreement, the Security Agreement, the Note, any other Loan Document, or
any other agreement or arrangement between Lender and Borrower, now existing or
entered into hereafter, shall constitute a default under this Agreement and all
the Loan Documents.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      7.4 Notice.  Unless
otherwise expressly provided by the terms of this Agreement, or the Loan
Documents, if an Event of Default shall occur, Lender shall give written notice
of such occurrence to Borrower as follows:

       

      (a) Monetary
Default.  Borrower shall not be entitled to any notice
regarding defaults with respect to regularly scheduled monthly payments of
principal and accrued interest under the Note.  However, in the event
of any other monetary default for which Borrower is given a cure period, Lender
shall give Borrower written notice of the Event of Default and Borrower shall be
given an opportunity to cure the default within the applicable cure
period.

       

      (b) Nonmonetary
Default.  In the event of a nonmonetary default for which
Borrower is given a cure period, Lender shall give Borrower written notice of
the Event of Default and Borrower shall be given an opportunity to cure the
default within the applicable cure period.  However, if the
nonmonetary default cannot reasonably be corrected within the applicable cure
period, Borrower shall have an additional thirty (30) days to remedy such
nonmonetary default if Borrower notifies Lender of the manner in which the
nonmonetary default shall be cured, and if appropriate corrective action is
instituted within the initial specified cure period and is diligently pursued
thereafter.

       

      7.5 Remedies.  If
an Event of Default shall occur and continue after any required notice and lapse
of any applicable grace period, all obligations of Lender under this Agreement,
and under the Loan Documents, at the election of Lender, shall cease and
terminate, and Lender may:  (a) declare the outstanding Principal
Indebtedness evidenced by the Note and secured by the Security Agreement, the
Assignments of Deposit Account and any other Loan Document immediately due and
payable; (b) exercise Lender’s rights with respect to the Collateral given as
security for the repayment of the Loan as described in the Security Agreement;
(c) exercise the rights of set-off described in this Agreement; (d) require that
the Guarantor perform the obligations of Borrower under all of the Loan
Documents; or (e) exercise any other right or remedy available to Lender
pursuant to any Loan Document, or as provided at law or in equity.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      7.6 No Remedy
Exclusive.  No
remedy conferred upon or reserved to Lender under this Agreement shall be
exclusive of any other available remedy or remedies, but each and every such
remedy shall be cumulative and shall be in addition to every other remedy given
under this Agreement, the Loan Documents, or now or hereafter existing at law or
in equity or by statute.  No delay or failure to exercise any right or
power accruing upon any Event of Default shall impair any such right or power or
shall be construed to be a waiver thereof, but any such right and power may be
exercised from time to time and as often as may be deemed
expedient.

       

      ARTICLE
VIII

       

      MISCELLANEOUS

       

      8.1 Derivative
Rights.  The
obligation of Lender to advance the Loan proceeds to Borrower hereunder is
imposed solely and exclusively for the benefit of Borrower and no other person,
firm or corporation shall, under any circumstances, be deemed to be a
beneficiary of such condition, nor shall it have any derivative claim or action
against Lender.

       

      8.2 Amendments.  Neither
this Agreement nor any provisions hereof may be changed, waived, discharged or
terminated orally and may only be modified or amended by an instrument in
writing, signed by both Lender and Borrower.

       

      8.3 Binding
Effect.  This
Agreement shall be binding upon and shall inure to the benefit of Borrower,
Lender and their respective successors and assigns.

       

      8.4 Waivers.  The
failure by Lender or Borrower at any time or times hereafter to require strict
performance by the other of any of the undertakings, agreements or covenants
contained in this Agreement shall not waive, affect or diminish any right of
Borrower or Lender hereunder to demand strict compliance and performance
therewith.  Any waiver by Lender of any Event of Default under this
Agreement shall not waive or affect any other Event of Default hereunder,
whether such Event of Default is prior or subsequent thereto and whether of the
same or a different type. None of the undertakings, agreements or covenants of
Borrower and Lender under this Agreement shall be deemed to have been waived
unless such waiver is evidenced by an instrument in writing signed by the party
to be charged specifying such waiver.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      8.5 Survival.  This
Agreement shall survive the disbursement of the Loan proceeds, and each and
every one of the obligations and undertakings of Borrower and Lender contained
herein shall be continuing obligations and undertakings and shall not cease and
terminate until all amounts which may accrue pursuant to this Agreement or any
of the Loan Documents shall have been fully paid and all obligations and
undertakings of Borrower shall have been fully discharged.

       

      8.6 Assignment.  Lender
may assign Lender's rights under the Loan Documents, in whole or in part, to any
other person, firm or corporation, provided that all provisions of this
Agreement shall continue to apply in conjunction with the Loan Documents and
provided further that Lender shall remain obligated for the disbursement of Loan
proceeds as provided in this Agreement unless Lender's assignee expressly
assumes such obligation and such assignee is reasonably acceptable to
Borrower.  In the event of such assignment by Lender, it shall be
deemed to have been made in pursuance of this Agreement and not to be a
modification hereof, and the disbursements and advances thereafter made shall be
evidenced by the Loan Documents.

       

      8.7 Notices.  Except
as otherwise provided in this Agreement or in any Loan Document, whenever Lender
or Borrower desire to give or serve any notice, demand, request or other
communication with respect to this Agreement or any other Loan Document, each
such notice shall be in writing and shall be effective only if the notice is
delivered by personal service, by nationally-recognized overnight courier, by
facsimile, or by mail, postage prepaid, addressed as follows:

       

      
        
          	
                   
      

                	
                  If
      to Lender, to:

                	
                  U.S.
      Bank National Association

                
	 	 	1514
      Park Avenue
	 	 	P.O.
      Box 680277
	 	 	Park
      City, Utah 84068
	 	 	Attn:  
      Isaac Allen
	 	 	Facsimile
      No. (435) 647-3735
	 	 	 
	 	 	 
	 	 If
      to Borrower, to:  	Park
      City Group, Inc.
	 	 	3160
      Pinebrook Road
	 	 	Park
      City, Utah 84098
	 	 	Attn: 
       Randall K. Fields
	 	 	Facsimile
      No. (435) 645-2010

        

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      Any
notice delivered personally or by courier shall be deemed to have been given
when delivered.  Any notice sent by facsimile shall be presumed to
have been received on the date transmitted.  Any notice sent by mail
shall be presumed to have been received five (5) business days after deposit in
the United States mail, with postage prepaid and properly
addressed.  Any party may change its address by giving notice to the
other party of its new address in the manner provided above.

       

      8.8 Severability.  If
any term or provision of this Agreement shall, to any extent, be determined by a
court of competent jurisdiction to be void, voidable or unenforceable, such
void, voidable or unenforceable term or provision shall not affect any other
term or provision of this Agreement.

       

      8.9 Actions.  Lender
shall have the right, but not the obligation, to commence, appear in and defend
any action or proceeding which might affect Lender's security or Lender's
rights, duties or liabilities relating to the Loan, or this Agreement, or any of
the other Loan Documents.

       

      8.10 Participation.  Lender
shall have the right to sell participations in the Loan to any other persons or
entities without the consent of or notice to Borrower, provided that no such
action by Lender shall relieve Lender of Lender's obligation to fund the Loan as
and when required by this Agreement.  Lender may disclose to any
participants or prospective participants any information or other data or
material in Lender's possession relating to Borrower, the Guarantor, the
Collateral and the Loan, without the consent of or prior notice to Borrower or
the Guarantor.

       

      8.11 No
Partnership.  Nothing
contained in this Agreement or in any Loan Document shall be construed as
creating a joint venture or partnership between Borrower and
Lender.  There shall be no sharing of losses, costs and expenses
between Borrower and Lender, and Lender shall have no right of control or
supervision except as Lender may exercise Lender’s rights and remedies provided
hereunder and in the Loan Documents.

       

      8.12 Interpretation.  Whenever
the context shall require, the plural shall include the singular, the whole
shall include any part thereof, and any gender shall include both other
genders.  The article and section headings contained in this Agreement
are for purposes of reference only and shall not limit, expand or otherwise
affect the construction of any provisions hereof.

       

      8.13 Governing
Law.  This
Agreement and all matters relating hereto shall be governed by, construed and
interpreted in accordance with the laws of the State of Utah, without giving
effect to principles of conflicts of law.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      8.14 Conflicts.  The
provisions of this Agreement are not intended to be superseded by the provisions
of the Loan Documents executed in conjunction with this Agreement but shall be
construed as supplemental thereto.  In the event of any inconsistency
between the provisions hereof and the Loan Documents, it is intended that this
Agreement shall control.

       

      8.15 Commissions.  No
brokerage, finder's or other fee, commission or compensation shall be paid by
Borrower or Lender in connection with the closing of the
Loan.  Borrower or Lender shall indemnify each other (including
attorney fees and costs) against any and all claims for brokerage and finder's
fees or commissions which may be asserted against the other based on the actions
or omissions of the indemnifying party.

       

      8.16 Counterparts.  This
Agreement may be executed in any number of counterparts, each of which when so
executed and delivered, shall be deemed an original, but all such counterparts
taken together shall constitute only one instrument.

       

      8.17 Attorney
Fees.  Borrower
and Lender agree that should either of them default in any of the covenants or
agreement contained in this Agreement or any of the Loan Documents, the
defaulting party shall pay all costs and expenses, including reasonable attorney
fees and costs, incurred by the non-defaulting party to protect its rights
hereunder, regardless of whether an action is commenced or prosecuted to
judgment.  In addition, Borrower hereby consents to the jurisdiction
of the courts of the State of Utah and to venue in Salt Lake County, Utah as the
proper forum and venue for resolution of disputes under this Agreement or any of
the Loan Documents.

       

      8.18 Jury
Waiver.  BORROWER
AND LENDER HEREBY JOINTLY AND SEVERALLY WAIVE ANY AND ALL RIGHT TO TRIAL BY JURY
IN ANY ACTION OR PROCEEDING RELATING TO THIS INSTRUMENT AND TO ANY OF THE LOAN
DOCUMENTS, THE OBLIGATIONS HEREUNDER OR THEREUNDER, ANY COLLATERAL SECURING THE
OBLIGATIONS, OR ANY TRANSACTION ARISING THEREFROM OR CONNECTED THERETO. BORROWER
AND LENDER EACH REPRESENTS TO THE OTHER THAT THIS WAIVER IS KNOWINGLY, WILLINGLY
AND VOLUNTARILY GIVEN.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      8.19 Final
Expression.  THIS
AGREEMENT AND THE LOAN DOCUMENTS ARE THE FINAL EXPRESSION OF THE AGREEMENT AND
UNDERSTANDING OF LENDER AND BORROWER WITH RESPECT TO THE LOAN AND MAY NOT BE
CONTRADICTED BY EVIDENCE OF ANY ALLEGED ORAL AGREEMENT.

       

      DATED
effective as of the date first above written.

      

      
        	
                 
      

              	
                LENDER:

              

      

      

      
        
          	
                   
      

                	
                  U.S.
      BANK NATIONAL ASSOCIATION

                
	 	 
	 	By: /s/Isaac
      Allen
	 	    
      Title:   Relationship
Manager

        

      

       

      
        
        

      

      
        
        

      

      
 

      
        
          	
                   
      

                	
                  BORROWER:

                
	 	 
	 	PARK
      CITY GROUP, INC., a Nevada corporation
	 	 
	 	By: /s/ Randall
      Fields
	 	      RANDALL
      K. FIELDS, CEO

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00150-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00150-of-00352.parquet"}]]