Document:

Unassociated Document

    
          Exhibit 10.13

     

    
       

      Small
Business Administration

    

    U.S.
Small Business Administration

    

    AUTHORIZATION

    (SBA
GUARANTEED LOAN)

    

    

    
      

    

    

    
      	
              SBA
      Loan #

            	
              PLP
      399-236-4004

            
	
              SBA
      Loan Name

            	
              Crystal
      Magic, Inc.

            
	
              Approval
      Date

            	
              10/04/00

            

    

    

    Lender:                                                      U.
S. Small Business Administration (SBA):

    

    Liberty
National
Bank                                                      North
Florida District Office

    502 N.
Highway
17-92                                                      7825
Baymeadows Way - Suite 100-B

    Longwood,
FL
32750                                                      Jacksonville,
FL 32256-7504

    

    SBA
approves, under Section 7(a) of the Small Business Act as amended. Lender’s,
application, received 10/04/00, for SBA to guarantee 75% of a loan (“Loan”) in
the amount of $250,000.00 to assist;

    

    Borrower;

    1.      Crystal
Magic, Inc.

     2120 Hidden Pine La.

     Apopka, FL 32712

    

    All
requirements in the Authorization which refer lo Borrower also apply to any
Co-Borrower.

    

    
      	
              A.

            	
              THE GUARANTEE FEE IS
      $5,625.00. Lender must pay the guarantee fee within 90 days of the
      date of this Authorization. Failure to timely pay the guarantee fee will
      result in cancellation of the SBA guarantee. The 90-day deadline may not
      be extended. Lender must send the guarantee fee to the Small Business
      Administration, Denver CO 80259-0001. The remittance check should show the
      Loan number. No part of the guarantee fee is refundable if Lender has made
      any disbursement Lender may collect this fee from Borrower after initial
      disbursement of Loan- Borrower may use Loan proceeds to reimburse Lender
      for the guarantee fee.

            

    

    

    
      	
              B.

            	
              ONGOING SERVICING FEE -
      Lender agrees to pay an ongoing fee equal to one-half of one percent per
      year of the guaranteed portion of the outstanding balance. Lender may not
      charge this fee to Borrower.

            

    

    

    
      	
              C.

            	
              IT IS LENDER’S SOLE
      RESPONSIBILITY TO:

            

    

     

    
      
        	
                 
      

              	
                1.

              	
                Close
      the Loan in accordance with the terms and conditions of this
      Authorization.

              

      

       

    

    
      	
               
      

            	
              2.

            	
              Obtain
      valid and enforceable Loan documents, including obtaining the signature or
      written consent of any obligor’s spouse if such consent or signature is
      necessary to bind the marital community or create a valid lien on marital
      property.

            

    

     

     

     

     

     

    SBA Loan
Number: PLP
399-236-4004                                                                                                                    Page
1

    SBA Loan
Name: .Crystal Magic,
Inc.                                                                                                         (7a
Wizard 3.0)

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    
      	
               
      

            	
              3.

            	
              Retain
      all Loan closing documents. Lender must submit these documents, along with
      other required documents, to SBA for review if Lender requests SBA to
      honor its guarantee on the Loan, or at any time SBA requests the documents
      for review.

            

    

    

    D.           REQUIRED FORMS

    

    
      	
               
      

            	
              1.

            	
              Lender
      may use its own forms except as otherwise instructed in this
      Authorization. Lender must use the following SBA forms for the
      Loan:

            

    

    

    SBA Form
147, Note

    SBA Form
1050, Settlement Sheet, for each disbursement

    SBA Form
159, Compensation Agreement, for each representative

    SBA Form
2004, Lender’s Certification

    SBA Form
722, Equal Opportunity Poster

    SBA Form
793, Notice to New Borrowers

    

    
      	
               
      

            	
              2.

            	
              Lender
      may use computer-generated versions of mandatory SBA Forms, as long as
      these versions are exact
reproductions.

            

    

    

    
      	
               
      

            	
              3.

            	
              Lenders
      must submit completed SBA Forms 159 and 2004 for non-PLP loans to the SBA
      immediately after final
disbursement.

            

    

    

    
      	
              E.

            	
              CONTINGENCIES - SBA
      issues this Authorization in reliance on representations in the Loan
      application, including supporting documents. The guarantee is contingent
      upon Lender:

            

    

    

    
      	
               
      

            	
              1.

            	
              Having
      and complying with a valid SBA Loan Guarantee Agreement (SBA Form 750 or
      SBA Form 750B for short-term loans) and any required supplemental
      guarantee agreements, between Lender and
SBA;

            

    

    

    
      	
               
      

            	
              2.

            	
              Complying
      with the current SBA Standard Operating Procedures
  (SOP);

            

    

    

    
      	
               
      

            	
              3.

            	
              Making
      initial disbursement of the Loan no later than 3 months, and completing
      disbursement no later than 6 months, from the date of this Authorization,
      unless SBA extends the time in
writing;

            

    

    

    
      	
               
      

            	
              4.

            	
              Having
      no evidence since the date of the Loan application, or any preceding
      disbursement, of any unremedied adverse change in the financial condition,
      organization, operations, or fixed assets of Borrower which would warrant
      withholding or not making any further disbursement,
  and;

            

    

    

    
      	
               
      

            	
              5.

            	
              Satisfying
      all of the conditions in this
Authorization.

            

    

     

     

     

     

     

    SBA Loan
Number: PLP
399-236-4004                                                                                                                    Page
2

    SBA Loan
Name: .Crystal Magic,
Inc.                                                                                                         (7a
Wizard 3.0)

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    F.      NOTE TERMS:

    

    1.      Maturity: This Note will
mature in 7 years from date of Note.

    

    
      	
               
      

            	
              2.

            	
              Repayment Terms: Lender
      must insert onto SBA Note, Form 147, to be executed by Borrower, the
      following repayment terms, without modification. Lender must complete all
      blank terms on the Note at time of
closing:

            

    

    

    The
interest rate on this Note will fluctuate. The initial interest rate is 11.50%
per year. This initial rate is the prime rate on the date SBA received the loan
application, plus 2.00%.

    

    Borrower
must pay three payments of interest only on the disbursed principal balance
beginning one month from the month this Note is dated and every month
thereafter payment must be made on the first calendar day in the month it is
due.

    

    Borrower
must pay principal and interest payments of $4,452.00 every month,
beginning four months from the month this Note is dated;
payments must be made on the first calendar day in the months they are
due.

    

    Lender
will apply each installment payment first to pay interest accrued to the day
Lender receives the payment, then to bring principal current, then to pay any
late fees, and will apply any remaining balance to reduce
principal.

    

    The
interest rate will be adjusted every calendar quarter (the “change
period”).

    

    The
“Prime Rate” is the prime rate in effect on the first business day of the
quarter in which a change occurs, as published in the Wall Street Journal
on the next business day.

    

    The
adjusted interest rate will be 2.00% above the Prime Rate. Lender will adjust
the interest rate on the first calendar day of each change period. The change in
interest rate is effective on that day whether or not Lender gives Borrower
notice of the change. The initial rate must remain in effect until the first
change period begins.

    

    Lender
must adjust the payment amount at least annually as needed to amortize principal
over the remaining term of the note.

    

    If SBA
purchases the guaranteed portion of the unpaid principal balance, the interest
rate becomes fixed at the rate in effect at the time of the earliest uncured
payment default. If there is no uncured payment default, the rate becomes fixed
at the rate in effect at the time of purchase.

    

    All
remaining principal and accrued interest is due and payable 7 years from date of
Note.

    

    Late
Charge: If a payment on this Note is more than 10 days late. Lender may charge
Borrower a late fee of up to 5% of the unpaid portion of the regularly scheduled
payment.

    

    G.           USE OF PROCEEDS

     

    
      

      
        	
                1.  

              	
                $200,000.00
      to purchase equipment.

              

      

       

    

    
      	
              2.  

            	
              $30,000.00
      to purchase inventory.

            

    

    

    
      	
              3.  

            	
              $20,
      000.00 for working capital

            

    

    

    
       

       

       

       

       

    

    SBA Loan
Number: PLP
399-236-4004                                                                                                                    Page
3

    SBA Loan
Name: .Crystal Magic,
Inc.                                                                                                         (7a
Wizard 3.0)

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    All
amounts-listed above are approximate. Lender must document that Borrower used
the loan proceeds for the purposes stated in this Authorization.

    

    Lender
may not disburse Loan proceeds solely to pay the guarantee fee. Lender may
disburse to Borrower, as working capital only, funds not spent for the listed
purposes as long as these funds do not exceed 10% of the specific purpose
authorized or $l0, 000.00, whichever is less. An Eligible Passive Company may
not receive working capital funds.

    

    Lender
must complete SBA Form 1050. Settlement Sheet, for each disbursement and retain
these forms in its Loan file.

    

    H.           COLLATERAL
CONDITIONS

    

    Lender
must obtain a lien on 100% of the interests in the following collateral and
properly perfect all lien positions:

    

    
      	
               
      

            	
              1.

            	
              First Perfected Security
      Interest, subject to no other liens, in the following personal
      property (including any proceeds and products), whether now owned
      or later acquired, wherever located- Equipment; Fixtures; Inventory.
      Accounts; Instruments; Chattel Paper, General
  Intangibles;

            

    

    

    
      	
               
      

            	
              a.

            	
              Lender
      must obtain a written agreement from all Lessors (including sublessors)
      agreeing .to: (I) Subordinate to Lender Lessor’s interest, if any, in this
      property; (2) Provide Lender written notice of default and reasonable
      opportunity to cure the default; and (3) Allow Lender the right to take
      possession and dispose of or remove the
  collateral.

            

    

    

    
      	
               
      

            	
              b.

            	
              Lender
      must obtain a list of all equipment and fixtures that are collateral for
      the Loan. For items with a unit value of $500 or more, the list must
      include a description and serial number, if
  applicable.

            

    

    

    
      	         
     	
              c.  

            	
              Lender
      must obtain an appropriate Uniform Commercial Code lien search evidencing
      all required lien positions. If UCC search is not available, another type
      of lien search maybe substituted.

            

    

    

    The
following language must appear in all lien instruments including Mortgages,
Deeds of Trust, and Security Agreements;

    

    “The
Loan secured by this lien was made under a United Stales Small Business
Administration (SBA) nationwide program which uses tax dollars to assist small
business owners. If the United States is seeking to enforce this document, then
under SBA regulations”

    

    
      	
               
      

            	
              a)

            	
              When
      SBA is the holder of the Note, this document and all documents evidencing
      or securing this Loan will be construed in accordance with federal
      law.

            

    

    

    
      	
               
      

            	
              b)

            	
              Lender
      or SBA may use local or state procedures for purposes such as filing
      papers, recording documents, giving notice, foreclosing liens, and other
      purposes. By using these procedures, SBA does not waive any federal
      immunity from local or state control, penalty, tax or liability. No
      Borrower or Guarantor may claim or assert against SBA any local or state
      law to deny any obligation of Borrower, or defeat any claim of SBA with
      respect to this Loan.

            

    

    

    Any
clause in this document requiring arbitration is not enforceable when SBA is the
holder of the Note secured by this instrument.”

     

     

     

     

     

    SBA Loan
Number: PLP
399-236-4004                                                                                                                    Page
4

    SBA Loan
Name: .Crystal Magic,
Inc.                                                                                                         (7a
Wizard 3.0)

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    I.      ADDITIONAL
CONDITIONS

    

    1.      Insurance
Requirements

    

    Prior to
disbursement. Lender must require Borrower to obtain the following insurance
coverage and maintain this coverage for the life of Loan;

    

    
      	
               
      

            	
              a.

            	
              Personal Property Hazard
      Insurance coverage on all equipment, fixtures or inventory that is
      collateral for the Loan, in the amount of full replacement costs. If full
      replacement cost insurance is not available, coverage should be for
      maximum insurable value. This policy must contain a LENDER’S LOSS PAYABLE
      CLAUSE in favor of Lender. This clause must provide that any act or
      neglect of the debtor or owner of the insured property will not invalidate
      the interest of Lender. The policy or endorsements must provide for at
      least 10 days prior written notice to Lender of policy
      cancellation.

            

    

    

    
      	
               
      

            	
              b.

            	
              Life
      Insurance, satisfactory to Lender

            

    

     

    (1)           on
the life of Steven M. Rhodes in the amount of $1,000,000.00.

    

    Lender
must obtain a collateral assignment of each policy with Lender as assignee which
provides that Insurer will give Lender at least 30 days written notice of
payment default and a right to cure. Lender must also obtain acknowledgment of
the assignment by the Home Office of the Insurer.

    

    
      	
               
      

            	
              c.

            	
              Liability Insurance in
      an amount and with an insurance company satisfactory to
      Lender.

            

    

    

    
      	
               
      

            	
              d.

            	
              Workers’ Compensation
      Insurance in an amount meeting state law requirements and with an
      insurance company satisfactory to
Lender.

            

    

    2.      Borrower, Guarantor and Operating
Company Documents

    

    
      	
               
      

            	
              a.

            	
              Prior
      to closing, Lender must obtain from Borrower, Guarantor and Operating
      Company a current copy of each of the following as
      appropriate:

            

    

    

    
      	
               
      

            	
              (1)

            	
              Corporate Documents -
      Articles or Certificate of Incorporation (with amendments), any By-laws,
      Certificate of Good Standing (or equivalent), Corporate Borrowing
      Resolution, and, if a foreign corporation, current authority to do
      business within this state.

            

    

    

    
      	
               
      

            	
              (2)

            	
              Limited Liability Company (LLC)
      Documents - Articles of Organization (with amendments), Fact
      Statement or Certificate of Existence, Operating Agreement, Borrowing
      Resolution, and evidence of registration with the appropriate
      authority.

            

    

    

    
      	
               
      

            	
              (3)

            	
              General Partnership
      Documents - Partnership Agreement, Certificate as to Partners, and
      Certificate of Partnership or Good Standing (or equivalent), as
      applicable.

            

    

    

    
      	
               
      

            	
              (4)

            	
              Limited Partnership
      Documents - Partnership Agreement, Certificate as to Partners, and
      Certificate of Partnership or Good Standing (or equivalent), as
      applicable. Certificate of Limited Partnership, and evidence of
      registration with the appropriate
authority.

            

    

    

    
      	
               
      

            	
              (5)

            	
              Limited Liability Partnership
      (LLP) Documents - Partnership Agreement, Certificate as to
      Partners, Certificate of Partnership or Good Standing (or equivalent) as
      applicable, and evidence of registration with the appropriate
      authority.

            

    

     

     

     

     

     

    SBA Loan
Number: PLP
399-236-4004                                                                                                                    Page
5

    SBA Loan
Name: .Crystal Magic,
Inc.                                                                                                         (7a
Wizard 3.0)

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    
      	
               
      

            	
              (6)

            	
              Trustee Certification -
      A Certificate from the trustee warranting
that:

            

    

    
      	
               
      

            	
              (a)

            	
              The
      trust will not be revoked or substantially amended for the term of the
      Loan without the consent of SBA;

            

    

    
      	
               
      

            	
              (b)

            	
              The
      trustee has authority to act;

            

    

    
      	
               
      

            	
              (c)

            	
              The
      trust has the authority to borrow funds, guarantee loans, and pledge trust
      assets;

            

    

    
      	
               
      

            	
              (d)

            	
              If
      the trust is an Eligible Passive Company, the trustee has authority to
      lease the property to the Operating
Company;

            

    

    
      	
               
      

            	
              (e)

            	
              There
      is nothing in the trust agreement that would prevent Lender from realizing
      on any security interest in trust
assets;

            

    

    
      	
               
      

            	
              (f)

            	
              The
      trust agreement has specific language confirming the above;
      and

            

    

    
      	
               
      

            	
              (g)

            	
              The
      trustee has provided and will continue to provide SBA with a true and
      complete list of all trustors and
donors.

            

    

    
      	
               
      

            	
              (7)

            	
              Trade Name –
      Documentation that Borrower has complied with state requirements for
      registration of Borrower’s trade name (or fictitious name), if one is
      used.

            

    

    

    3.      Operating
Information

    

    Prior
to any disbursement of Loan proceeds, Lender must obtain;

    

    
      	
              a.

            	
              Verification of Financial
      Information - Lender must submit IRS Form 4506 to the Internal
      Revenue Service to obtain federal income tax information on Borrower or,
      if the Borrower is an EPC, then the Operating Company for the last 3 years
      (unless Borrower or Operating Company is a start-up business). If the
      business has been operating for less than 3 years, lender must obtain the
      information for all years in operation. This requirement does not include
      tax information for the most recent fiscal year if the fiscal year-end is
      within 6 months of the application date. Lender must compare the tax data
      received from the IRS with the financial data or tax returns submitted
      with the Loan application, and relied upon in approving the Loan. Borrower
      must resolve any significant differences to the satisfaction of Lender and
      SBA, Failure to resolve differences may result in cancellation of the
      Loan.

            

    

    

    
      	
              b.

            	
              If
      Lender has not submitted IRS Form 4506 prior to the date of this
      Authorization, it must submit the Form no later than 10 business days from
      this date. If the Lender does not receive a response from the IRS within
      10 business days of submitting the SBA version of IRS Form 4506, then
      Lender may disburse prior to completing this verification. At the time the
      information is received, Lender must still perform the verification and
      resolve any significant differences discovered, even if the loan is fully
      disbursed.

            

    

    

    
      	
              c.

            	
              Authority to Conduct
      Business - Evidence that the Borrower has an Employer
      Identification Number and all insurance, licenses, permits and other
      approvals necessary to lawfully operate the
  business.

            

    

    

    
      	
              d.

            	
              Flood Hazard
      Determination - A completed Standard Flood Hazard Determination
      (FEMA Form 81-93).

            

    

    

    
      	
              e.

            	
              Lease - Current lease(s)
      on all business premises where collateral is located with term, including
      options, at least as long as the term of the
  Loan.

            

    

    

    
      	
              4.

            	
              Certifications and
      Agreements

            

    

    

    a.      Lender
must require Borrower to certify that:

     

     

     

     

     

    SBA Loan
Number: PLP
399-236-4004                                                                                                                    Page
6

    SBA Loan
Name: .Crystal Magic,
Inc.                                                                                                         (7a
Wizard 3.0)

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    
      	
               
      

            	
              (1)

            	
              Receipt of Authorization
      - Borrower has received a copy of this Authorization and SEA Form 793,
      Notice to New SBA Borrower, from Lender; and acknowledges
      that:

            

    

    
      	
               
      

            	
              (a)

            	
              The
      Authorization is not a
      commitment by Lender to make a loan to
Borrower;

            

    

    
      	
               
      

            	
              (b)

            	
              The
      Authorization is between Lender and SBA and creates no third party rights
      or benefits to Borrower;

            

    

    
      	
               
      

            	
              (c)

            	
              The
      Note will require Borrower to give Lender prior notice of intent to
      prepay.

            

    

    
      	
               
      

            	
              (d)

            	
              If
      Borrower defaults on Loan, SBA may be required to pay Lender under the SBA
      guarantee. SBA may then seek recovery of these funds from Borrower. Under
      SBA regulations, 13 CFR Part 101, Borrower may not claim or assert against
      SBA any immunities or defenses available under local law to defeat, modify
      or otherwise limit Borrower’s obligation to repay to SBA any funds
      advanced by Lender to Borrower.

            

    

    
      	
               
      

            	
              (e)

            	
              Payments
      by SBA to Lender under SBA’s guarantee will not apply to the Loan account
      of Borrower, or diminish the indebtedness of Borrower under the Note or
      the obligations of any personal guarantor of the
  Note,

            

    

    

    
      	
               
      

            	
              (2)

            	
              Child Support - No
      principal who owns at least 50% of the ownership or voting interest of the
      company is delinquent more than 60 days under the terms of any (a)
      administrative order, (b) court order, or (c) repayment agreement
      requiring payment of child support.

            

    

    

    
      	
               
      

            	
              (3)

            	
              Current Taxes - Borrower
      is current on all federal, state, and local taxes, including but not
      limited to income taxes, payroll taxes, real estate taxes, and sales
      taxes.

            

    

    

    
      	
               
      

            	
              b.

            	
              Lender
      must require Borrower to certify that it
will:

            

    

    
      	
               
      

            	
              (1)

            	
              Reimbursable
      Expenses-Reimburse Lender for expenses incurred in the making and
      administration of the Loan.

            

    

    
      	
               
      

            	
              (2)

            	
              Books, Records, and
      Reports.

            

    

    
      	
               
      

            	
              (a)

            	
              Keep
      proper books of account in a manner satisfactory to
  Lender;

            

    

    
      	
               
      

            	
              (b)

            	
              Furnish
      year-end statements to Lender within 120 days of fiscal year
      end;

            

    

    
      	
               
      

            	
              (c)

            	
              Furnish
      additional financial statements or reports whenever Lender requests
      them;

            

    

    
      	
               
      

            	
              (d)

            	
              Allow
      Lender or SBA, at Borrower’s expense,
to:

            

    

    
      	
               
      

            	
              [1]

            	
              Inspect
      and audit books, records and papers relating to Borrower’s financial or
      business condition; and

            

    

    
      	
               
      

            	
              [2]

            	
              Inspect
      and appraise any of Borrower’s assets;
and

            

    

    
      	
               
      

            	
              [3]

            	
              Allow
      all government authorities to furnish reports of examinations, or any
      records pertaining to Borrower, upon request by Lender or
    SBA.

            

    

    

    
      	
               
      

            	
              (3)

            	
              Equal Opportunity - Post
      SBA Form 722, Equal Opportunity Poster, where it is clearly visible to
      employees, applicants for employment and the general public, and comply
      with the requirements of SBA Form 793, Notice to New SBA
      Borrowers.

            

    

    

    
      	
               
      

            	
              (4)

            	
              American-made Products -
      To the extent feasible, purchase only American-made equipment and products
      with the proceeds of the Loan.

            

    

    

    
      	
               
      

            	
              (5)

            	
              Taxes - Pay all federal, state,
      and local taxes, including income, payroll, real estate and sales taxes of
      the business when they come due.

            

    

    

     

     

     

     

     

    SBA Loan
Number: PLP
399-236-4004                                                                                                                    Page
7

    SBA Loan
Name: .Crystal Magic,
Inc.                                                                                                         (7a
Wizard 3.0)

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    
      	
              c.

            	
              Lender
      must require Borrower to certify that it will not, without Lender’s prior
      written consents

            

    

    
      	
              (1)

            	
              Distributions-Make any
      distribution of company assets that will adversely affect the financial
      condition of Borrower.

            

    

    
      	
              (2)

            	
              Ownership Changes -
      Change the ownership structure or interests in the business during the
      term of the Loan.

            

    

    
      	
              (3)

            	
              Transfer of Assets -
      Sell, lease, pledge, encumber (except by purchase money liens on property
      acquired after the date of the Note), or otherwise dispose of any of
      Borrowers property or assets, except in the ordinary course of
      business.

            

    

    

    ADMINISTRATOR

    SMALL
BUSINESS ADMINISTRATION

    

    

    
                                
    

    

    By:           Laura
M. Badawi, Vice
President,                                                                Date: 10/04/00

    a
Preferred Lender, as Lender and as an agent of and on behalf of the SBA for the
purpose of executing this Authorization.

     

     

     

     

     

    SBA Loan
Number: PLP
399-236-4004                                                                                                                    Page
8

    SBA Loan
Name: .Crystal Magic,
Inc.                                                                                                         (7a
Wizard 3.0)Unassociated Document

    
          Exhibit 10.14

     

    

      
        Small
Business Administration

      

      U.S.
Small Business Administration

      

      AUTHORIZATION

      (SBA
GUARANTEED LOAN)

      

      

      
        

      

      

      
        	
                SBA
      Loan #

              	
                PLP
      3 09-109-4009

              
	
                SBA
      Loan Name

              	
                Crystal
      Magic, Inc.

              
	
                Approval
      Date

              	
                7/29/99

              

      

      

      Lender:                                                      U.
S. Small Business Administration (SBA):

      Liberty
National
Bank                            
North Florida District Office

      502 N.
Highway
17-92                             7825
Baymeadows Way - Suite 100-B

      Longwood,
FL
32750                              
Jacksonville, FL 32256-7504

      

      SBA
approves, under Section 7(a) of the Small Business Act as amended. Lender’s,
application, received 7/27/99, for SBA to guarantee 75% of a loan (“Loan”) in
the amount of $490,000.00 to assist;

      

      Borrower;

      1.      Crystal
Magic, Inc.

      2120 Hidden Pine La.

      Apopka, FL 32712

      

      All
requirements in the Authorization which refer lo Borrower also apply to any
Co-Borrower.

      

      
        	
                A.

              	
                THE GUARANTEE FEE IS
      $11,612.50. Lender must pay the guarantee fee within 90 days of the
      date of this Authorization. The 90-day deadline may not be extended.
      Lender must send the guarantee fee to the Small Business Administration,
      Denver, CO 80259-0001. The remittance check should show the Loan number.
      No part of the guarantee fee is refundable if Lender has made any
      disbursement. Lender may collect this fee from Borrower after initial
      disbursement of Loan. Borrower may use Loan proceeds to reimburse Lender
      for the guarantee fee.

              

      

      

      
        	
                B.

              	
                ONGOING SERVICING FEE -
      Lender agrees to pay an ongoing fee equal to one-half of one percent per
      year of the guaranteed portion of the outstanding balance. Lender may not
      charge this fee to Borrower.

              

      

      

      
        	
                C.

              	
                IT IS LENDER’S SOLE
      RESPONSIBILITY TO :

              

      

      

      
        	
                 
      

              	
                1.

              	
                Close
      the Loan in accordance with the terms and conditions of this
      Authorization.

              

      

      

      
        	
                 
      

              	
                2.

              	
                Obtain
      valid and enforceable Loan documents, including obtaining the signature or
      written consent of any obligor’s spouse if such consent or signature is
      necessary to bind the marital community or create a valid lien on marital
      property.

              

      

      

      

       

       

      SBA Loan
Number: PLP
309-109-4009                                                                                                                    Page
1

      SBA Loan
Name: .Crystal Magic,
Inc.                                                                                                         (7a
Wizard 2.3)

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      
        	
                3.

              	
                Retain
      all Loan closing documents. Lender must submit these documents, along with
      other required documents, to SBA for review if Lender requests SBA to
      honor its guarantee on the Loan, or at any time SBA requests the documents
      for review.

              

      

      

      D.           REQUIRED FORMS

      

      
        	
                 
      

              	
                1.

              	
                Lender
      may use its own forms except as otherwise instructed in this
      Authorization. Lender must use the following SBA forms for the
      Loan:

              

      

      

      SBA Form
147, Note

      SBA Form
1050, Settlement Sheet, for each disbursement

      SBA Form
159, Compensation Agreement, for each representative

      SBA Form
2004, Lender’s Certification

      SBA Form
722, Equal Opportunity Poster

      SBA Form
793, Notice to New Borrowers

      SBA Form
148, Guarantee

      SBA Form
148, Limited Guarantee (use 148L if available)

      

      
        	
                 
      

              	
                2.

              	
                Lender
      may use computer-generated versions of mandatory SBA Forms, as long as
      these versions are exact
reproductions.

              

      

      

      
        	
                 
      

              	
                3.

              	
                Lenders
      must submit completed SBA Forms 159 and 2004 for non-PLP loans to the SBA
      immediately after final
disbursement.

              

      

      

      
        	
                E.

              	
                CONTINGENCIES - SBA
      issues this Authorization in reliance on representations in the Loan
      application, including supporting documents. The guarantee is contingent
      upon Lender:

              

      

      

      
        	
                 
      

              	
                1.

              	
                Having
      and complying with a valid SBA Loan Guarantee Agreement (SBA Form 750 or
      SBA Form 750B for short-term loans) and any required supplemental
      guarantee agreements, between Lender and
SBA;

              

      

      

      
        	
                 
      

              	
                2.

              	
                Complying
      with the current SBA Standard Operating Procedures
  (SOP);

              

      

      

      
        	
                 
      

              	
                3.

              	
                Making
      initial disbursement of the Loan no later than 6 months, and completing
      disbursement no later than 12 months, from the date of this Authorization,
      unless SBA extends the time in
writing;

              

      

      

      
        	
                 
      

              	
                4.

              	
                Having
      no evidence since the date of the Loan application, or any preceding
      disbursement, of any unremedied adverse change in the financial condition,
      organization, operations, or fixed assets of Borrower which would warrant
      withholding or not making any further disbursement,
  and;

              

      

      

      
        	
                 
      

              	
                5.

              	
                Satisfying
      all of the conditions in this
Authorization.

              

      

       

      
 

       

       

      SBA Loan
Number: PLP
309-109-4009                                                                                                                    Page
2

      SBA Loan
Name: .Crystal Magic,
Inc.                                                                                                         (7a
Wizard 2.3)

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      F.      NOTE TERMS:

      

      1.      Maturity: This Note will
mature in 7 years from date of Note.

      

      
        	
                 
      

              	
                2.

              	
                Repayment Terms: Lender
      must insert onto SBA Note, Form 147, to be executed by Borrower, the
      following repayment terms, without modification. Lender must complete all
      blank terms on the Note at time of
closing:

              

      

      

      The
interest rate on this Note will fluctuate. The initial interest rate is 10.50%
per year. This initial rate is the prime rate on the date SBA received the loan
application, plus 2.50%.

      

      Borrower
must pay three payments of interest only on the disbursed principal balance one
month from the month this Note is dated; payment must be made on the first
calendar day in the month it is due.

      

      Borrower
must pay principal and interest payments of $6,050.00 every month, beginning
four months from the month this Note is dated; payments must be made on the
first calendar day in the months they are due.

      

      Lender
will apply each installment payment first to pay interest accrued to the day
Lender receives the payment, then to bring principal current, then to pay any
late fees, and will apply any remaining balance to reduce
principal.

      

      Lender
may adjust the interest rate for the first time no earlier than the first
calendar day of the first quarter after initial disbursement. The interest rate
will then be adjusted each calendar quarter (the “change period”).

      

      The
“Prime Rate” is the prime rate in effect on the first business day of the
quarter in which a change occurs, as published in the Wall Street Journal
on the next business day.

      

      The
adjusted interest rate will be 2.50% above the Prime Rate. Lender will adjust
the interest rate on the first calendar day of each change period. The change in
interest rate is effective on that day whether or not Lender gives Borrower
notice of the change.

      

      Lender
must adjust the payment amount at least annually as needed to amortize principal
over the remaining term of the note.

      

      If SBA
purchases the guaranteed portion of the unpaid principal balance, the interest
rate becomes fixed at the rate in effect at the time of the earliest uncured
payment default. If there is no uncured payment default, the rate becomes fixed
at the rate in effect at the time of purchase.

      

      All
remaining principal and accrued interest is due and payable 7 years from date of
Note.

      

      Late
Charge: If a payment on this Note is more than 10 days late. Lender may charge
Borrower a late fee of up to 5% of the unpaid portion of the regularly scheduled
payment.

      

      G.           USE OF PROCEEDS

      

      1.           $215,000.00
to purchase equipment.

      

      2.           $275,000.00
for working capital.

      

      All
amounts listed above are approximate. Lender must document that Borrower used
the loan proceeds for the purposes stated in this Authorization.

      
         

        

        

        

      

      SBA Loan
Number: PLP
309-109-4009                                                                                                                    Page
3

      SBA Loan
Name: .Crystal Magic,
Inc.                                                                                                         (7a
Wizard 2.3)

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      Lender
may not disburse Loan proceeds solely to pay the guarantee fee. Lender may
disburse to Borrower, as working capital only, funds not spent for the listed
purposes as long as these funds do not exceed 10°/o of the specific purpose
authorized or $10,000.00, whichever is less. An Eligible Passive Company may not
receive working capital funds.

      

      Lender
must complete SEA Form 1050, Settlement Sheet, for each disbursement and retain
these forms in its Loan file.

      

      H.           COLLATERAL
CONDITIONS

      

      Lender
must obtain a lien on 100% of the interests in the following collateral and
properly perfect all lien positions:

      

      
        	
                 
      

              	
                1.

              	
                First Perfected Security
      Interest, subject to no other liens, in the following personal
      property (including any proceeds and products), whether now owned
      or later acquired, wherever located: Equipment; Inventory; Accounts;
      Instruments; General Intangibles;

              

      

      

      
        	
                 
      

              	
                a.

              	
                Lender
      must obtain a written agreement from all Lessors (including sublessors)
      agreeing to: (I) Subordinate to Lender Lessor’s interest, if any, in this
      property; (2) Provide Lender written notice of default and reasonable
      opportunity to cure the default; and (3) Allow Lender the right to take
      possession and dispose of or remove the
  collateral.

              

      

      

      
        	
                 
      

              	
                b.

              	
                Lender
      must obtain a list of all equipment and fixtures that are collateral for
      the Loan. For items with a unit value of $500 or more, the list must
      include a description and serial number, if
  applicable.

              

      

      

      
        	
                 
      

              	
                c.

              	
                Lender
      must obtain an appropriate Uniform Commercial Code lien search evidencing
      all required lien positions. If UCC search is not available, another type
      of lien search may be substituted.

              

      

      

      2.      Guarantee on SBA Form 148, by
Steven M. Rhodes, resident in Florida, Secured by:

      

      
        	
                 
      

              	
                a.

              	
                Second Mortgage on land and
      improvements located at 2120 Hidden Pine La., Apopka, Fl. 32712.
      This property is residential.

              

      

      

      (1)           
Subject only to prior lien(s) as follows:

      (a)                 First:
Bank of America in the amount of $119,400.00

      

      
        	
                 
      

              	
                (2)

              	
                Any
      prior lien(s) that is (are) open ended as to future advances must be
      closed, in writing, according to applicable state law. The revolving
      line(s) of credit set out above, if any, must be limited in writing to the
      amount stated.

              

      

      

      
        	
                 
      

              	
                (3)

              	
                Evidence
      of title and priority of lien must be based
  upon:

              

      

      (a)                 Title
and/or Lien Search or other evidence of proper ownership and lien
position.

      

      3.      Guarantee on SBA Form 148, by
Steven M. Rhodes, resident in Florida. Secured by

      

      
        	
                 
      

              	
                a.

              	
                Pledge of Corporate
      Stock: Pledge to
      Lender by Steven M. Rhodes (shareholder) of 10,000 shares of stock (but
      not voting rights) in Crystal Magic,
Inc..

              

      

      

       

       

       

      SBA Loan
Number: PLP
309-109-4009                                                                                                                    Page
4

      SBA Loan
Name: .Crystal Magic,
Inc.                                                                                                         (7a
Wizard 2.3)

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      
        	
                4.

              	
                Limited Guarantee on SBA Form
      148 (use 14SL if available), by Vicki L. Rhodes, resident in
      Florida.

              

      

      

      COMMUNITY
PROPERTY OR SPOUSAL INTEREST LIMITATION: The Guarantee is limited to Guarantor’s
community property or spousal interest in collateral pledged to secure the Note
or any guarantee.

      

      Secured
by :

      

      
        	
                 
      

              	
                a.

              	
                Second Mortgage on laud and
      improvements located at 2120 Hidden Pine La., Apopka, FL. 32712.
      This property is residential.

              

      

      (1)           Subject
only to prior lien(s) as follows:

      
        	
                (a)

              	
                First:
      Bank of America in the amount of
$119,400.00

              

      

      
        	
                 
      

              	
                (2)

              	
                Any
      prior lien(s) that is (are) open ended as to future advances must be
      closed, in writing, according to applicable state law. The revolving
      line(s) of credit set out above, if any, must be limited in writing to the
      amount stated.

              

      

      
        	
                 
      

              	
                (3)

              	
                Evidence
      of title and priority of lien must be based
  upon:

              

      

      
        	
                 
      

              	
                (a)

              	
                Title
      and/or Lien Search or other evidence of proper ownership and lien
      position.

              

      

      

      The
following language must appear in all lien instruments including Mortgages,
Deeds of Trust, and Security Agreements;

      “The
Loan secured by this lien was made under a United Stales Small Business
Administration (SBA) nationwide program which uses tax dollars to assist small
business owners. If the United States is seeking to enforce this document, then
under SBA regulations”

      

      
        	
                 
      

              	
                a)

              	
                When
      SBA is the holder of the Note, this document and all documents evidencing
      or securing this Loan will be construed in accordance with federal
      law.

              

      

      

      
        	
                 
      

              	
                b)

              	
                Lender
      or SBA may use local or state procedures for purposes such as filing
      papers, recording documents, giving notice, foreclosing liens, and other
      purposes. By using these procedures, SBA does not waive any federal
      immunity from local or state control, penalty, tax or liability. No
      Borrower or Guarantor may claim or assert against SBA any local or state
      law to deny any obligation of Borrower, or defeat any claim of SBA with
      respect to this Loan.

              

      

      

      Any
clause in this document requiring arbitration is not enforceable when SBA is the
holder of the Note secured by this instrument.”

      

       

       

       

      SBA Loan
Number: PLP
309-109-4009                                                                                                                    Page
5

      SBA Loan
Name: .Crystal Magic,
Inc.                                                                                                         (7a
Wizard 2.3)

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      I.      ADDITIONAL
CONDITIONS

      

      1.      Insurance
Requirements

      

      Prior to
disbursement. Lender must require Borrower to obtain the following insurance
coverage and maintain this coverage for the life of Loan;

      

      
        	
                 
      

              	
                a.

              	
                Flood Insurance, If FEMA
      Form 81-93 reveals that any portion of the collateral is located in a
      special flood hazard zone, Lender must require Borrower to obtain Federal
      flood insurance, or other appropriate special hazard insurance, in amounts
      equal, to the lesser of the insurable value of the property or the maximum
      limit of coverage available. (Borrower will be ineligible for any future
      SBA disaster assistance or business loan assistance if Borrower does not
      maintain any required flood insurance for the entire term of the
      Loan.)

              

      

      

      
        	
                 
      

              	
                b.

              	
                Real Estate Hazard
      Insurance coverage on all real estate that is collateral for the
      Loan in the amount of the full replacement cost. If full replacement cost
      insurance is not available, coverage should be for maximum insurable
      value. This policy must contain a MORTGAGEE CLAUSE
      (or substantial equivalent) in favor of Lender. This clause must
      provide that any act or neglect of the mortgagor or owner of the insured
      property will not invalidate the interest of Lender. The policy or
      endorsements must provide for at least 10 days prior written notice to
      Lender of policy cancellation.

              

      

      

      
        	
                 
      

              	
                c.

              	
                Personal Property Hazard
      Insurance coverage on all equipment, fixtures or inventory that is
      collateral for the Loan, in the amount of full replacement costs. If full
      replacement cost insurance is not available, coverage should be for
      maximum insurable value. This policy must contain a LENDER’S LOSS PAYABLE
      CLAUSE in favor of Lender. This clause must provide that any act or
      neglect of the debtor or owner of the insured property will not invalidate
      the interest of Lender. The policy or endorsements must provide for at
      least 10 days prior written notice to Lender of policy
      cancellation.

              

      

      

      
        	
                 
      

              	
                d.

              	
                Life
      Insurance, satisfactory to Lender

              

      

      (1)           on
the life of Steven M. Rhodes in the amount of $490,000,00.

      

      Lender
must obtain a collateral assignment of each policy with Lender as assignee which
provides that Insurer will give Lender at least 30 days written notice of
payment default and a right to cure. Lender must also obtain acknowledgment of
the assignment by the Home Office of the Insurer.

      

      
        	
                 
      

              	
                e.

              	
                Liability Insurance in
      an amount and with an insurance company satisfactory to
      Lender.

              

      

      

      
        	
                 
      

              	
                f.

              	
                Workers’ Compensation
      Insurance in an amount meeting state law requirements and with an
      insurance company satisfactory to
Lender.

              

      

      

       

       

       

      SBA Loan
Number: PLP
309-109-4009                                                                                                                    Page
6

      SBA Loan
Name: .Crystal Magic,
Inc.                                                                                                         (7a
Wizard 2.3)

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      2.      Borrower, Guarantor and Operating
Company Documents

      

      
        	
                 
      

              	
                a.

              	
                Prior
      to closing, Lender must obtain from Borrower, Guarantor and Operating
      Company a current copy of each of the following as
      appropriate:

              

      

      

      
        	
                 
      

              	
                (1)

              	
                Corporate Documents -
      Articles or Certificate of Incorporation (with amendments), any By-laws,
      Certificate of Good Standing (or equivalent), Corporate Borrowing
      Resolution, and, if a foreign corporation, current authority to do
      business within this state.

              

      

      

      
        	
                 
      

              	
                (2)

              	
                Limited Liability Company (LLC)
      Documents - Articles of Organization (with amendments), Fact
      Statement or Certificate of Existence, Operating Agreement, Borrowing
      Resolution, and evidence of registration with the appropriate
      authority.

              

      

      

      
        	
                 
      

              	
                (3)

              	
                General Partnership
      Documents - Partnership Agreement, Certificate as to Partners, and
      Certificate of Partnership or Good Standing (or equivalent), as
      applicable.

              

      

      

      
        	
                 
      

              	
                (4)

              	
                Limited Partnership
      Documents - Partnership Agreement, Certificate as to Partners, and
      Certificate of Partnership or Good Standing (or equivalent), as
      applicable. Certificate of Limited Partnership, and evidence of
      registration with the appropriate
authority.

              

      

      

      
        	
                 
      

              	
                (5)

              	
                Limited Liability Partnership
      (LLP) Documents - Partnership Agreement, Certificate as to
      Partners, Certificate of Partnership or Good Standing (or equivalent) as
      applicable, and evidence of registration with the appropriate
      authority.

              

      

      

      
        	
                 
      

              	
                (6)

              	
                Trustee Certification -
      A Certificate from the trustee warranting
that:

              

      

      
        	
                 
      

              	
                (a)

              	
                The
      trust will not be revoked or substantially amended for the term of the
      Loan without the consent of SBA;

              

      

      
        	
                 
      

              	
                (b)

              	
                The
      trustee has authority to act;

              

      

      
        	
                 
      

              	
                (c)

              	
                The
      trust has the authority to borrow funds, guarantee loans, and pledge trust
      assets;

              

      

      
        	
                 
      

              	
                (d)

              	
                If
      the trust is an Eligible Passive Company, the trustee has authority to
      lease the property to the Operating
Company;

              

      

      
        	
                 
      

              	
                (e)

              	
                There
      is nothing in the trust agreement that would prevent Lender from realizing
      on any security interest in trust
assets;

              

      

      
        	
                 
      

              	
                (f)

              	
                The
      trust agreement has specific language confirming the above;
      and

              

      

      
        	
                 
      

              	
                (g)

              	
                The
      trustee has provided and will continue to provide SBA with a true and
      complete list of all trustors and
donors.

              

      

      

      3.      Operating
Information

      

      Prior
to any disbursement of Loan proceeds, Lender must obtain;

      

      
        	
                 
      

              	
                a.

              	
                Verification of Financial
      Information - Evidence that the financial information submitted to
      support the loan application is accurate using procedures required by SBA.
      Borrower must resolve any questions on accuracy to the satisfaction of
      Lender and SBA before Lender disburses Loan
  proceeds.

              

      

      

      
        	
                 
      

              	
                b.

              	
                Authority to Conduct
      Business - Evidence that the Borrower has an Employer
      Identification Number and all insurance, licenses, permits and other
      approvals necessary to lawfully operate the
  business.

              

      

      

      
        	
                 
      

              	
                c.

              	
                Flood Hazard
      Determination - A completed Standard Flood Hazard Determination
      (FEMAFormSI-93).

              

      

       

       

       

       

       

      SBA Loan
Number: PLP
309-109-4009                                                                                                                    Page
7

      SBA Loan
Name: .Crystal Magic,
Inc.                                                                                                         (7a
Wizard 2.3)

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      4.      Certifications
and Agreements

      

      
        	
                 
      

              	
                a.

              	
                Lender
      must require Borrower to certify
that:

              

      

      
        	
                 
      

              	
                (1)

              	
                Receipt of Authorization
      - Borrower has received a copy of this Authorization and SBA Form
      793, Notice to New SBA Borrower, from Lender; and acknowledges
      that:

              

      

      
        	
                 
      

              	
                (a)

              	
                The
      Authorization is not a
      commitment by Lender to make a loan to
Borrower;

              

      

      
        	
                 
      

              	
                (b)

              	
                The
      Authorization is between Lender and SBA and creates no third party rights
      or benefits to Borrower;

              

      

      
        	
                 
      

              	
                (c)

              	
                The
      Note will require Borrower to give Lender prior notice of intent to
      prepay.

              

      

      
        	
                 
      

              	
                (d)

              	
                If
      Borrower defaults on Loan, SBA may be required to pay Lender under the SBA
      guarantee. SBA may then seek recovery of these funds from Borrower. Under
      SBA regulations, 13 CFR Part 101, Borrower may not claim or assert against
      SBA any immunities or defenses available under local law to defeat, modify
      or otherwise limit Borrower’s obligation to repay to SBA any funds
      advanced by Lender to Borrower.

              

      

      
        	
                 
      

              	
                (e)

              	
                Payments
      by SBA to Lender under SBA’s guarantee will not apply to the Loan account
      of Borrower, or diminish the indebtedness of Borrower under the Note or
      the obligations of any personal guarantor of the
  Note,

              

      

      

      
        	
                 
      

              	
                (2)

              	
                Child Support - No
      principal who owns at least 50% of the ownership or voting interest of the
      company is delinquent more than 60 days under the terms of any (a)
      administrative order, (b) court order, or (c) repayment agreement
      requiring payment of child support.

              

      

      

      
        	
                 
      

              	
                (3)

              	
                Current Taxes - Borrower
      is current on all federal, state, and local taxes, including but not
      limited to income taxes, payroll taxes, real estate taxes, and sales
      taxes.

              

      

      

      
        	
                 
      

              	
                b.

              	
                Lender
      must require Borrower to certify that it
will:

              

      

      
        	
                 
      

              	
                (1)

              	
                Reimbursable
      Expenses-Reimburse Lender for expenses incurred in the making and
      administration of the Loan.

              

      

      
        	
                 
      

              	
                (2)

              	
                Books, Records, and
      Reports.

              

      

      
        	
                 
      

              	
                (a)

              	
                Keep
      proper books of account in a manner satisfactory to
  Lender;

              

      

      
        	
                 
      

              	
                (b)

              	
                Furnish
      year-end statements to Lender within 120 days of fiscal year
      end;

              

      

      
        	
                 
      

              	
                (c)

              	
                Furnish
      additional financial statements or reports whenever Lender requests
      them;

              

      

      
        	
                 
      

              	
                (d)

              	
                Allow
      Lender or SBA, at Borrower’s expense,
to:

              

      

      
        	
                 
      

              	
                [1]

              	
                Inspect
      and audit books, records and papers relating to Borrower’s financial or
      business condition; and

              

      

      
        	
                 
      

              	
                [2]

              	
                Inspect
      and appraise any of Borrower’s assets;
and

              

      

      
        	
                 
      

              	
                [3]

              	
                Allow
      all government authorities to furnish reports of examinations, or any
      records pertaining to Borrower, upon request by Lender or
    SBA.

              

      

      

      
        	
                 
      

              	
                (3)

              	
                Equal Opportunity - Post
      SBA Form 722, Equal Opportunity Poster, where it is clearly visible to
      employees, applicants for employment and the general public, and comply
      with the requirements of SBA Form 793, Notice to New SBA
      Borrowers.

              

      

      

      
        	
                 
      

              	
                (4)

              	
                American-made Products -
      To the extent feasible, purchase only American-made equipment and products
      with the proceeds of the Loan.

              

      

      

      
        	
                 
      

              	
                (5)

              	
                Taxes - Pay all federal, state,
      and local taxes, including income, payroll, real estate and sales taxes of
      the business when they come due.

              

      

      

       

       

       

      SBA Loan
Number: PLP
309-109-4009                                                                                                                    Page
8

      SBA Loan
Name: .Crystal Magic,
Inc.                                                                                                         (7a
Wizard 2.3)

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      
        	
                c.

              	
                Lender
      must require Borrower to certify that it will not, without Lender’s prior
      written consents

              

      

      
        	
                (1)

              	
                Distributions-Make any
      distribution of company assets that will adversely affect the financial
      condition of Borrower.

              

      

      
        	
                (2)

              	
                Ownership Changes -
      Change the ownership structure or interests in the business during the
      term of the Loan.

              

      

      
        	
                (3)

              	
                Transfer of Assets -
      Sell, lease, pledge, encumber (except by purchase money liens on property
      acquired after the date of the Note), or otherwise dispose of any of
      Borrowers property or assets, except in the ordinary course of
      business.

              

      

      

      ADMINISTRATOR

      SMALL
BUSINESS ADMINISTRATION

      

      

      By:           James
M- Scott, Senior V.P.,            Date: 7/29/99

      a Preferred Lender, as Lender and as an agent of and on behalf of the SBA for the
purpose of executing this Authorization.

       

       

       

       

      SBA Loan
Number: PLP
309-109-4009                                                                                                                    Page
9

      SBA Loan
Name: .Crystal Magic,
Inc.                                                                                                         (7a
Wizard 2.3)

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      LOAN
AGREEMENT

      

      THIS LOAN
AGREEMENT (“Agreement”) is made August 4, 1999 between the Borrower and Lender
identified in the attached Authorization issued by the U.S. Small Business
Administration (“SBA”) to Lender, dated July 27, 1999
(“Authorization”).

      

      SBA has
authorized a guaranty of a loan from Lender to Borrower for the amount and under
the terms stated in the attached Authorization (the “Loan”).

      

      In
consideration of the promises in this Agreement and for other good and valuable
consideration, Borrower and Lender agree as follows:

      

      
        	
                 
      

              	
                1

              	
                Subject
      to the terms and conditions of the Authorization and SBA’S Participating
      Lender Rules as defined in the Guarantee Agreement between Lender and SBA,
      Lender agrees to make the Loan if Borrower complies with the following
      “Borrower Requirements”. Borrower
must:

              

      

      

      
        	
                 
      

              	
                a.

              	
                Provide
      Lender with all certifications, documents or other information Lender is
      required by the Authorization to obtain from Borrower or any third
      party;

              

      

      

      
        	
                 
      

              	
                b.

              	
                Execute
      a note and any other documents required by Lender;
  and

              

      

      

      
        	
                 
      

              	
                c.

              	
                Do
      everything necessary for Lender to comply with the terms and conditions of
      the Authorization.

              

      

      

      
        	
                 
      

              	
                2.

              	
                The
      terms and conditions of this
Agreement:

              

      

      

      
        	
                 
      

              	
                a.

              	
                Are
      binding on Borrower and Lender and their successors and assigns;
      and

              

      

      

      
        	
                 
      

              	
                b.

              	
                Will
      remain in effect after the closing of the
Loan.

              

      

      

      
        	
                 
      

              	
                3.

              	
                Borrower
      shall provide Lender with written notice of intent to prepay part or all
      of the loan at least three (3) weeks prior to the anticipated prepayment
      date. A prepayment is any payment made ahead of schedule that exceeds
      twenty (20) percent of the then outstanding principal balance. If Borrower
      makes a prepayment and fails to give at least three weeks advance notice
      of intent to prepay, then, notwithstanding any other provision to the
      contrary in the Note or other document, Borrower shall be required to pay
      Lender three weeks interest on the unpaid principal as of the date of such
      prepayment.

              

      

      

      
        	
                 
      

              	
                4.

              	
                Failure
      to abide by any of the Borrower Requirements will constitute an event of
      default under the note and other loan
documents

              

      

      

      
        	
                 
      

              	
                Crystal
      Magic, Inc.

              

      

      

      Borrower:                                                                                     

      By:
Steven M, Rhodes, President/Secretary

      

      Liberty
National Bank

      

      Lender:                                                                                     

      By: Laura
M, Badawi, Vice President

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      BORROWER’S
CERTIFICATION

      

      
        INSTRUCTIONS:
INDICATE THE PARAGRAPHS BEING CERTIFIED TO BY HAVING THE BORROWER INITIAL IN THE
[ ] NEXT TO THE APPROPRIATE PARAGRAPHS, PRIOR TO SIGNING.

      

      

      In order
to induce Liberty
National
Bank                                                                                                (“Lender”)
to make a U.S. Small Business Administration (“SBA”) guaranteed Loan, SBA Loan
Number PLP 309-109-4009 (“Loan”)
to Crystal Magic,
Inc. “Borrower”),

      

      A.                                                                                                Borrower,
Crystal Magic,
Inc., certifies that:

      

      
        	
                 
      

              	
                [

              	
                ]
      1.

              	
                Receipt
      of Authorization -Borrower has received a copy of the Authorization for
      this Loan and SBA Form 793, Notice to New SBA Borrower, from Lender and
      acknowledge that:

              

      

      a.      The
Authorization is not a commitment by
Lender to make a loan to Borrower;

      
        	
                b.

              	
                The
      Authorization is between Lender and SBA and creates no third party rights
      or benefits to Borrower;

              

      

      
        	
                c.

              	
                The
      note will require Borrower to give Lender Prior notice or intent to
      prepay.

              

      

      
        	
                d.

              	
                If
      Borrower defaults on Loan, SBA may be required to pay Lender under the SBA
      guarantee. SBA may then seek recovery of these funds from Borrower. Under
      SBA regulations, 13 CFR Part 101, Borrower may not claim or assert against
      SBA any immunities or defenses available under local law to defeat, modify
      or otherwise limit Borrower’s obligation to repay to SBA any funds
      advanced by Lender to Borrower.

              

      

      
        	
                e.

              	
                Payments
      by SBA to Lender under SBA’s guarantee will not apply to the Loan account
      of Borrower, or diminish the indebtedness of Borrower under the Note or
      the obligations of any personal guarantor of the
  Note.

              

      

      

      [           ]
2.           Adverse Change - That there
has been no adverse change in Borrower’s (and Operating Company) financial
condition, organization, operations or fixed assets since the date the Loan
application was signed.

      

      [           ]
3.           Child Support - That no
principal who owns at least 50% of the voting interest of the company is
delinquent more than 60 days under the terms of any (a) administrative order,
(b) court order, or (c) repayment agreement requiring payment of child
support.

      

      [           ]
4.           Current Taxes - That Borrower
(and Operating Company) are current on all federal, state, and local taxes,
including but not limited to income taxes, payroll taxes, real estate taxes, and
sales taxes.

      

      [           ]
5.           Environmental
- That

      

      
        	
                a.

              	
                At
      the time Borrower submitted the Loan application. Borrower (and Operating
      Company) was in compliance with all local, state, and federal
      environmental laws and regulations pertaining to environmental
      contamination;

              

      

      
        	
                b.

              	
                Borrower
      (and Operating Company) has, and will continue to comply with these laws
      and regulations;

              

      

      
        	
                c.

              	
                Borrower
      (and Operating Company) has no knowledge of any environmental
      contamination of any real or personal property pledged as collateral for
      the Loan which violates any such laws and regulations, (other than what
      was disclosed in connection with the Environmental Investigation of the
      property);

              

      

      
        	
                d.

              	
                Borrower
      (and Operating Company) assumes full responsibility for all costs incurred
      in any clean-up of environmental contamination and agrees to indemnify
      Lender and SBA against payment of any such costs (Lender or SBA may
      require Borrower (and Operating Company) to execute a separate
      indemnification agreement);

              

      

      
        	
                e.

              	
                Until
      full repayment of Loan, Borrower (and Operating Company) will promptly
      notify Lender and SBA if it knows, suspects or believes there may be any
      environmental contamination in or around the real property securing the
      Loan, or if Borrower (and Operating Company) and/or such property are
      subject to any investigation or enforcement action by any Governmental
      agency pertaining to any environmental contamination of the
      property.

              

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      B.           That
Borrower will:

      

      
        	
                 
      

              	
                1) Reimbursable Expenses-
      Reimburse Lender for expenses incurred in the making and administration of
      the Loan.

              

      

      
        	
                 
      

              	
                2)
      Books, Records, and Reports-

              

      

      a.      Keep
proper books of account in a manner satisfactory to Lender;

      
        	
                 
      

              	
                b.

              	
                Furnish
      year-end statements to Lender within ___ days (if not filled in, then 120
      days) of fiscal year end;

              

      

      
        	
                 
      

              	
                c.

              	
                Furnish
      additional financial statements or reports whenever Lender requests
      them;

              

      

      
        	
                 
      

              	
                d.

              	
                Allow
      Lender or SBA to:

              

      

      
        	
                 
      

              	
                (1)

              	
                Inspect
      and audit books, records and papers relating to Borrower’s financial or
      business condition; and

              

      

      
        	
                 
      

              	
                (2)

              	
                Inspect
      and appraise any of Borrower’s assets;
and

              

      

      
        	
                 
      

              	
                (3)

              	
                Allow
      all government authorities to furnish reports of examinations, or any
      records pertaining to Borrower, upon request by Lender or
    SBA.

              	 

      

      

      
        	
                 
      

              	
                3)
      Equal Opportunity
      - Post SBA Form 722, Equal Opportunity Poster, where it is clearly visible
      to employees, applicants for employment and the general public, and comply
      with SBA Form 793. Notice to New SBA
Borrowers.

              

      

      
        	
                 
      

              	
                4)
      American-made
      Products - To the extent feasible, purchase only American-made
      equipment and products with the proceeds of the
  Loan.

              

      

      
        	
                 
      

              	
                5)
      Taxes - Pay all
      federal, state, and local taxes, including income, payroll, real estate
      and sales, taxes of the business when they come
  due.

              

      

      
        	
                 
      

              	
                6)
      Occupancy - Occupy at least 51% of the square footage of rentable property
      at all times during the term of the Loan. Borrower certifies that it will
      not use Loan proceeds to improve or renovate any of the space leased to
      third parties.

              

      

      

      B.           That
Borrower will not, without Lender’s prior written consent:

      
        	
                 
      

              	
                1)
      Distributions-
      Make any distribution of company assets that will adversely affect the M
      financial condition of the Borrower (and/or Operating
      Company).

              

      

      
        	
                 
      

              	
                2)
      Ownership Changes
      - Change the ownership structure or interests in the business during the
      term of the Loan.

              

      

      
        	
                 
      

              	
                3)
      Transfer of Assets
      - Sell, lease, pledge, encumber (except by purchase money liens on
      property acquired after the date of the Note), or otherwise dispose of any
      of Borrower’s property or assets, except in the ordinary course of
      business.

              

      

      

      Crystal Magic,
Inc-

      

      

      By:
Steven M- Rhodes,
President                                                                8/4/99

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