Document:

form10q_041309exh1050.htm

    
      ASSIGNMENT
OF DEPOSIT ACCOUNT

    

     

     

    
      	
              Principal

              $60,470.00

            	
              Loan
      Date

              
                02-24-2009

              

            	
              Maturity

              03-10-2014

            	
              Loan
      No.

            	
              Call/Coll

                            452

            	
              Account

            	
              Officer

              086

            	
              Initials

            
	
              References
      in the boxes above are for Lender's use only and do not limit the
      applicability of this document to any particular loan or
item.

              Any
      item above containing "* * *" has been omitted due to text length
      limitations.

            

    

     

    
      
        
          	
                  Grantor:

                	
                  AMERICAN
      CONSUMERS INC DBA SHOP RITE

                  55
      HANNAH WAY

                  ROSSVILLE,
      GA  30741

                	
                  Lender:

                	
                  GATEWAY
      BANK & TRUST

                  Main

                  5102
      Alabama Hwy

                  Ringgold,
      GA  30736

                  (706)
      965-5500

                
	 	 	 	 

        

      

    

    
       

    

    THIS
ASSIGNMENT OF DEPOSIT ACCOUNT dated February 24, 2009, is made and executed
between AMERICAN CONSUMERS, INC. DBA SHOP RITE ("Grantor") and GATEWAY BANK
& TRUST ("Lender").

    
 

    ASSIGNMENT. For valuable
consideration, Grantor assigns and grants to Lender a security interest in the
Collateral, including without limitation the deposit accounts described below,
to secure the Indebtedness and agrees that Lender shall have the rights stated
in this Agreement with respect to the Collateral, in addition to all other
rights which Lender may have by law.

    
 

    COLLATERAL DESCRIPTION. The
word "Collateral" means the following described deposit account
("Account"):

    
 

    CD Account Number XXXXXXXX with Lender
with an approximate balance of $304,923.44

    
 

    together
with (A) all interest, whether now accrued or hereafter accruing; (B) all
additional deposits hereafter made to the Account; (C) any and all proceeds from
the Account; and (D) all renewals, replacements and substitutions for any of the
foregoing.

    
 

    CROSS-COLLATERALIZATION. In
addition to the Note, this Agreement secures all obligations, debts and
liabilities, plus interest thereon, of Grantor to Lender, or any one or more of
them, as well as all claims by Lender against Grantor or any one or more of
them, whether now existing or hereafter arising, whether related or unrelated to
the purpose of the Note, whether voluntary or otherwise, whether due or not due,
direct or indirect, determined or undetermined, absolute or contingent,
liquidated or unliquidated, whether Grantor may be liable individually or
jointly with others, whether obligated as guarantor, surety, accommodation party
or otherwise, and whether recovery upon such amounts may be or hereafter may
become barred by any statute of limitations, and whether the obligation to repay
such amounts may be or hereafter may become otherwise
unenforceable.

    
 

    RIGHT OF SETOFF. To the extent
permitted by applicable law, Lender reserves a right of setoff in all Grantor's
accounts with Lender (whether checking, savings, or some other account). This
includes all accounts Grantor holds jointly with someone else and all accounts
Grantor may open in the future. However, this does not include any IRA or Keogh
accounts, or any trust accounts for which setoff would be prohibited by law.
Grantor authorizes Lender, to the extent permitted by applicable law, to charge
or setoff all sums owing on the Indebtedness against any and all such accounts,
and, at Lender's option, to administratively freeze all such accounts to allow
Lender to protect Lender's charge and setoff rights provided in this
paragraph.

    
 

    GRANTOR'S REPRESENTATIONS AND
WARRANTIES WITH RESPECT TO THE COLLATERAL. With respect to the
Collateral, Grantor represents and promises to Lender that:

    
 

    Ownership. Grantor is the
lawful owner of the Collateral free and clear of all loans, liens, encumbrances,
and claims except as disclosed to and accepted by Lender in
writing.

    
 

    Right to Grant Security
Interest. Grantor has the full right, power, and authority to enter into
this Agreement and to assign the Collateral to Lender.

    
 

    No Prior Assignment. Grantor
has not previously granted a security interest in the Collateral to any other
creditor.

    
 

    No Further Transfer. Grantor
shall not sell, assign, encumber, or otherwise dispose of any of Grantor's
rights in the Collateral except as provided in this Agreement.

    
 

    No Defaults. There are no
defaults relating to the Collateral, and there are no offsets or counterclaims
to the same. Grantor will strictly and promptly do everything required of
Grantor under the terms, conditions, promises, and agreements contained in or
relating to the Collateral.

    
 

    Proceeds. Any and all
replacement or renewal certificates, instruments, or other benefits or proceeds
related to the Collateral that are received by Grantor shall be held by Grantor
in trust for Lender and immediately shall be delivered by Grantor to Lender to
be held as part of the Collateral.

    
 

    Validity; Binding Effect. This
Agreement is binding upon Grantor and Grantor's successors and assigns and is
legally enforceable in accordance with its terms.

    
 

    Financing Statements. Grantor
authorizes Lender to file a UCC financing statement, or alternatively, a copy of
this Agreement to perfect Lender's security interest. At Lender's request,
Grantor additionally agrees to sign all other documents that are necessary to
perfect, protect, and continue Lender's security interest in the Property.
Grantor will pay all filing fees, title transfer fees, and other fees and costs
involved unless prohibited by law or unless Lender is required by law to pay
such fees and costs. Grantor irrevocably appoints Lender to execute documents
necessary to transfer title if there is a default. Lender may file a copy of
this Agreement as a financing statement. If Grantor changes Grantor's name or
address, or the name or address of any person granting a security interest under
this Agreement changes, Grantor will promptly notify the Lender of such
change.

    
 

    LENDER'S RIGHTS AND OBLIGATIONS WITH
RESPECT TO THE COLLATERAL. While this Agreement is in effect, Lender may
retain the rights to possession of the Collateral, together with any and all
evidence of the Collateral, such as certificates or passbooks. This Agreement
will remain in effect until (a) there no longer is any Indebtedness owing to
Lender; (b) all other obligations secured by this Agreement have been fulfilled;
and (c) Grantor, in writing, has requested from Lender a release of this
Agreement.

    
 

    LENDER'S EXPENDITURES. If any
action or proceeding is commenced that would materially affect Lender's interest
in the Collateral or if Grantor fails to comply with any provision of this
Agreement or any Related Documents, including but not limited to Grantor's
failure to discharge or pay when due any amounts Grantor is required to
discharge or pay under this Agreement or any Related Documents, Lender on
Grantor's behalf may (but shall not be obligated to) take any action that Lender
deems appropriate, including but not limited to discharging or paying all taxes,
liens, security interests, encumbrances and other claims, at any time levied or
placed on the Collateral and paying all costs for insuring, maintaining and
preserving the Collateral. All such expenditures incurred or paid by Lender for
such purposes will then bear interest at the rate charged under the Note from
the date incurred or paid by Lender to the date of repayment by Grantor. All
such expenses will become a part of the Indebtedness and, at Lender's option,
will (A) be payable on demand; (B) be added to the balance of the Note and be
apportioned among and be payable with any installment payments to become due
during either (1) the term of any applicable insurance policy; or (2) the
remaining term of the Note; or (C) be treated as a balloon payment which will be
due and payable at the Note's maturity. The Agreement also will secure payment
of these amounts. Such right shall be in addition to all other rights and
remedies to which Lender may be entitled upon Default.

    
 

    LIMITATIONS ON OBLIGATIONS OF
LENDER. Lender shall use ordinary reasonable care in the physical
preservation and custody of any certificate or passbook for the Collateral but
shall have no other obligation to protect the Collateral or its value. In
particular, but without limitation, Lender shall have no responsibility (A) for
the collection or protection of any income on the Collateral; (B) for the
preservation of rights against issuers of the Collateral or against third
persons; (C) for ascertaining any maturities, conversions, exchanges, offers,
tenders, or similar matters relating to the Collateral; nor (D) for informing
the Grantor about any of the above, whether or not Lender has or is deemed to
have knowledge of such matters.

    
 

    DEFAULT. Each of the following
shall constitute an Event of Default under this Agreement:

    
 

    Payment Default. Grantor fails
to make any payment when due under the Indebtedness.

    
 

    Other Defaults. Grantor fails
to comply with or to perform any other term, obligation, covenant or condition
contained in this Agreement or in any of the Related Documents or to comply with
or to perform any term, obligation, covenant or condition contained in any other
agreement between Lender and Grantor.

    
 

    Default in Favor of Third
Parties. Any guarantor or Grantor defaults under any loan, extension of
credit, security agreement, purchase or sales agreement, or any other agreement,
in favor of any other creditor or person that may materially affect any of
guarantor’s or Grantor's property or ability to perform their respective
obligations under this Agreement or any of the Related Documents.

    
 

    False Statements. Any
warranty, representation or statement made or furnished to Lender by Grantor or
on Grantor's behalf under this Agreement or the Related Documents is false or
misleading in any material respect, either now or at the time made or furnished
or becomes

    
 

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              ASSIGNMENT
      OF DEPOSIT ACCOUNT

              (Continued)

            
	
              Page
      2

            

    

    
      

    

    
 

    false or
misleading at any time thereafter.

    
 

    Defective Collateralization.
This Agreement or any of the Related Documents ceases to be in full force and
effect (including failure of any collateral document to create a valid and
perfected security interest or lien) at any time and for any
reason.

    
 

    Insolvency. The dissolution or
termination of Grantor's existence as a going business, the insolvency of
Grantor, the appointment of a receiver for any part of Grantor's property, any
assignment for the benefit of creditors, any type of creditor workout, or the
commencement of any proceeding under any bankruptcy or insolvency laws by or
against Grantor.

    
 

    Creditor or Forfeiture
Proceedings. Commencement of foreclosure or forfeiture proceedings,
whether by judicial proceeding, self-help, repossession or any other method, by
any creditor of Grantor or by any governmental agency against any collateral
securing the Indebtedness. This includes a garnishment of any of Grantor's
accounts, including deposit accounts, with Lender. However, this Event of
Default shall not apply if there is a good faith dispute by Grantor as to the
validity or reasonableness of the claim which is the basis of the creditor or
forfeiture proceeding and if Grantor gives Lender written notice of the creditor
or forfeiture proceeding and deposits with Lender monies or a surety bond for
the creditor or forfeiture proceeding, in an amount determined by Lender, in its
sole discretion, as being an adequate reserve or bond for the
dispute.

    
 

    Events Affecting Guarantor.
Any of the preceding events occurs with respect to any Guarantor of any of the
Indebtedness or Guarantor dies or becomes incompetent or revokes or disputes the
validity of, or liability under, any Guaranty of the Indebtedness.

    
 

    Adverse Change. A material
adverse change occurs in Grantor's financial condition, or Lender believes the
prospect of payment or performance of the Indebtedness is impaired.

    
 

    Insecurity. Lender in good
faith believes itself insecure.

    
 

    RIGHTS AND REMEDIES ON
DEFAULT. Upon the occurrence of an Event of Default, or at any time
thereafter, Lender may exercise any one or more of the following rights and
remedies, in addition to any rights or remedies that may be available at law, in
equity, or otherwise:

    
 

    Accelerate Indebtedness.
Lender may declare all Indebtedness of Grantor to Lender immediately due and
payable, without notice of any kind to Grantor.

    
 

    Application of Account
Proceeds. Lender may take directly all funds in the Account and apply
them to the Indebtedness. If the Account is subject to an early withdrawal
penalty, that penalty shall be deducted from the Account before its application
to the Indebtedness, whether the Account is with Lender or some other
institution. Any excess funds remaining after application of the Account
proceeds to the Indebtedness will be paid to Grantor as the interests of Grantor
may appear. Grantor agrees, to the extent permitted by law, to pay any
deficiency after application of the proceeds of the Account to the Indebtedness.
Lender also shall have all the rights of a secured party under the Georgia
Uniform Commercial Code, even if the Account is not otherwise subject to such
Code concerning security interests, and the parties to this Agreement agree that
the provisions of the Code giving rights to a secured party shall nonetheless be
a part of this Agreement.

    
 

    Transfer Title. Lender may
effect transfer of title upon sale of all or part of the Collateral. For this
purpose, Grantor irrevocably appoints Lender as Grantor's attorney-in-fact to
execute endorsements, assignments and instruments in the name of Grantor and
each of them (if more than one) as shall be necessary or
reasonable.

    
 

    Other Rights and Remedies.
Lender shall have and may exercise any or all of the rights and remedies of a
secured creditor under the provisions of the Georgia Uniform Commercial Code, at
law, in equity, or otherwise.

    
 

    Deficiency Judgment. If
permitted by applicable law, Lender may obtain a judgment for any deficiency
remaining in the Indebtedness due to Lender after application of all amounts
received from the exercise of the rights provided in this section.

    
 

    Election of Remedies. Except
as may be prohibited by applicable law, all of Lender's rights and remedies,
whether evidenced by this Agreement or by any other writing, shall be cumulative
and may be exercised singularly or concurrently. Election by Lender to pursue
any remedy shall not exclude pursuit of any other remedy, and an election to
make expenditures or to take action to perform an obligation of Grantor under
this Agreement, after Grantor's failure to perform, shall not affect Lender's
right to declare a default and exercise its remedies.

    
 

    Cumulative Remedies. All of
Lender's rights and remedies, whether evidenced by this Agreement or by any
other writing, shall be cumulative and may be exercised singularly or
concurrently. Election by Lender to pursue any remedy shall not exclude pursuit
of any other remedy, and an election to make expenditures or to take action to
perform an obligation of Grantor under this Agreement, after Grantor's failure
to perform, shall not affect Lender's right to declare a default and to exercise
its remedies.

    
 

    MISCELLANEOUS PROVISIONS. The
following miscellaneous provisions are a part of this Agreement:

    
 

    Amendments. This Agreement,
together with any Related Documents, constitutes the entire understanding and
agreement of the parties as to the matters set forth in this Agreement. No
alteration of or amendment to this Agreement shall be effective unless given in
writing and signed by the party or parties sought to be charged or bound by the
alteration or amendment.

    
 

    Attorneys' Fees; Expenses.
Grantor agrees to pay upon demand all of Lender's costs and expenses, including
Lender's attorneys' fees and Lender's legal expenses, incurred in connection
with the enforcement of this Agreement. Lender may hire or pay someone else to
help enforce this Agreement, and Grantor shall pay the costs and expenses of
such enforcement. Costs and expenses include Lender's attorneys' fees and legal
expenses whether or not there is a lawsuit, including attorneys' fees and legal
expenses for bankruptcy proceedings (including efforts to modify or vacate any
automatic stay or injunction), appeals, and any anticipated post-judgment
collection services. Grantor also shall pay all court costs and such additional
fees as may be directed by the court.

    
 

    Caption Headings. Caption
headings in this Agreement are for convenience purposes only and are not to be
used to interpret or define the provisions of this Agreement.

    
 

    Governing
Law. This Agreement will be governed by federal law applicable to Lender and, to
the extent not preempted by federal law, the laws of the State of Georgia
without regard to its conflicts of law provisions. This Agreement has been
accepted by Lender in the State of Georgia.

    
 

    No Waiver by Lender. Lender
shall not be deemed to have waived any rights under this Agreement unless such
waiver is given in writing and signed by Lender. No delay or omission on the
part of Lender in exercising any right shall operate as a waiver of such right
or any other right. A waiver by Lender of a provision of this Agreement shall
not prejudice or constitute a waiver of Lender's right otherwise to demand
strict compliance with that provision or any other provision of this Agreement.
No prior waiver by Lender, nor any course of dealing between Lender and Grantor,
shall constitute a waiver of any of Lender's rights or of any of Grantor's
obligations as to any future transactions. Whenever the consent of Lender is
required under this Agreement, the granting of such consent by Lender in any
instance shall not constitute continuing consent to subsequent instances where
such consent is required and in all cases such consent may be granted or
withheld in the sole discretion of Lender.

    
 

    Notices. Any notice required
to be given under this Agreement shall be given in writing, and shall be
effective when actually delivered, when actually received by telefacsimile
(unless otherwise required by law), when deposited with a nationally recognized
overnight courier, or, if mailed, when deposited in the United States mail, as
first class, certified or registered mail postage prepaid, directed to the
addresses shown near the beginning of this Agreement. Any party may change its
address for notices under this Agreement by giving formal written notice to the
other parties, specifying that the purpose of the notice is to change the
party's address. For notice purposes, Grantor agrees to keep Lender informed at
all times of Grantor's current address. Unless otherwise provided or required by
law, if there is more than one Grantor, any notice given by Lender to any
Grantor is deemed to be notice given to all Grantors.

    
 

    Power of Attorney. Grantor
hereby appoints Lender as its true and lawful attorney-in-fact, irrevocably,
with full power of substitution to do the following: (1) to demand, collect,
receive, receipt for, sue and recover all sums of money or other property which
may now or hereafter become due, owing or payable from the Collateral; (2) to
execute, sign and endorse any and all claims, instruments, receipts, checks,
drafts or warrants issued in payment for the Collateral; (3) to settle or
compromise any and all claims arising under the Collateral, and in the place and
stead of Grantor, to execute and deliver its release and settlement for the
claim; and (4) to file any claim or claims or to take any action or institute or
take part in any proceedings, either in its own name or in the name of Grantor,
or otherwise, which in the discretion of Lender may seem to be necessary or
advisable. This power is given as security for the Indebtedness, and the
authority hereby conferred is and shall be irrevocable and shall remain in full
force and effect until renounced by Lender.

    
 

    Severability. If a court of
competent jurisdiction finds any provision of this Agreement to be illegal,
invalid, or unenforceable as to any circumstance, that finding shall not make
the offending provision illegal, invalid, or unenforceable as to any other
circumstance. If feasible, the offending provision shall be considered modified
so that it becomes legal, valid and enforceable. If the offending provision
cannot be so modified, it shall be considered deleted from this Agreement.
Unless otherwise required by law, the illegality, invalidity, or
unenforceability of any provision of this Agreement shall not affect the
legality, validity or enforceability of any other provision of this
Agreement.

    
 

    Successors and Assigns.
Subject to any limitations stated in this Agreement on transfer of Grantor's
interest, this Agreement shall be

    
 

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              ASSIGNMENT
      OF DEPOSIT ACCOUNT

              (Continued)

            
	
              Page
      3

            

    

    
      

    

    
 

    binding
upon and inure to the benefit of the parties, their successors and assigns. If
ownership of the Collateral becomes vested in a person other than Grantor,
Lender, without notice to Grantor, may deal with Grantor's successors with
reference to this Agreement and the Indebtedness by way of forbearance or
extension without releasing Grantor from the obligations of this Agreement or
liability under the Indebtedness.

    
 

    Survival of Representations and
Warranties. All representations, warranties, and agreements made by
Grantor in this Agreement shall survive the execution and delivery of this
Agreement, shall be continuing in nature, and shall remain in full force and
effect until such time as Grantor's Indebtedness shall be paid in
full.

    
 

    Time is of the Essence. Time
is of the essence in the performance of this Agreement.

    
 

    DEFINITIONS. The following
capitalized words and terms shall have the following meanings when used in this
Agreement. Unless specifically stated to the contrary, all references to dollar
amounts shall mean amounts in lawful money of the United States of America.
Words and terms used in the singular shall include the plural, and the plural
shall include the singular, as the context may require. Words and terms not
otherwise defined in this Agreement shall have the meanings attributed to such
terms in the Uniform Commercial Code:

    
 

    Account. The word "Account"
means the deposit accounts described in the "Collateral Description"
section.

    
 

    Agreement. The word
"Agreement" means this Assignment of Deposit Account, as this Assignment of
Deposit Account may be amended or modified from time to time, together with all
exhibits and schedules attached to this Assignment of Deposit Account from time
to time.

    
 

    Borrower. The word "Borrower"
means AMERICAN CONSUMERS, INC. DBA SHOP RITE and includes all co-signers and
co-makers signing the Note and all their successors and assigns.

    
 

    Collateral. The word
"Collateral" means all of Grantor's right, title and interest in and to all the
Collateral as described in the Collateral Description section of this
Agreement.

    
 

    Default. The word "Default"
means the Default set forth in this Agreement in the section titled
"Default".

    
 

    Event of Default. The words
"Event of Default" mean any of the events of default set forth in this Agreement
in the default section of this Agreement.

    
 

    Grantor. The word "Grantor"
means AMERICAN CONSUMERS, INC. DBA SHOP RITE.

    
 

    Guarantor. The word
"Guarantor" means any guarantor, surety, or accommodation party of any or all of
the Indebtedness.

    
 

    Guaranty. The word "Guaranty"
means the guaranty from Guarantor to Lender, including without limitation a
guaranty of all or part of the Note.

    
 

    Indebtedness. The word
"Indebtedness" means the indebtedness evidenced by the Note or Related
Documents, including all principal and interest together with all other
indebtedness and costs and expenses for which Grantor is responsible under this
Agreement or under any of the Related Documents. Specifically, without
limitation, Indebtedness includes all amounts that may be indirectly secured by
the Cross-Collateralization provision of this Agreement.

    
 

    Lender. The word "Lender"
means GATEWAY BANK & TRUST, its successors and assigns.

    
 

    Note. The word "Note" means
the Note executed by AMERICAN CONSUMERS, INC. DBA SHOP RITE in the principal
amount of $60,470.00 dated February 24, 2009, together with all renewals of,
extensions of, modifications of, refinancings of, consolidations of, and
substitutions for the note or credit agreement.

    
 

    Property. The word "Property"
means all of Grantor's right, title and interest in and to all the Property as
described in the "Collateral Description" section of this
Agreement.

    
 

    Related Documents. The words
"Related Documents" mean all promissory notes, credit agreements, loan
agreements, environmental agreements, guaranties, security agreements,
mortgages, deeds of trust, security deeds, collateral mortgages, and all other
instruments, agreements and documents, whether now or hereafter existing,
executed in connection with the Indebtedness.

    
 

    GRANTOR
HAS READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS ASSIGNMENT OF DEPOSIT ACCOUNT
AND AGREES TO ITS TERMS. THIS AGREEMENT IS DATED FEBRUARY 24, 2009.

    
 

    THIS
AGREEMENT IS GIVEN UNDER SEAL AND IT IS INTENDED THAT THIS AGREEMENT IS AND
SHALL CONSTITUTE AND HAVE THE EFFECT OF A SEALED INSTRUMENT ACCORDING TO
LAW.

     

    
      GRANTOR:

      
      

      
        
          
            
              
                
                  
                    	 	AMERICAN
      CONSUMERS INC DBA SHOP RITE	 	 	 	 
	 	 	 	 	 	 
	By:	
                            /s/
      Michael A. Richardson

                          	(Seal)	By:	
                            /s/
      Paul R. Cook

                          	(Seal)
	 	
                            MICHAEL A. RICHARDSON,
      President of

                          	 	 	
                            PAUL R. COOK, Chief Financial
      Officer of

                          	 
	 	
                            
                              AMERICAN
      CONSUMERS INC DBA SHOP RITE

                            

                          	 	 	
                            
                              AMERICAN
      CONSUMERS INC DBA SHOP RITEform10q_041309exh1051.htm

     

    
 

    PROMISSORY
NOTE

    
      
        

        
          
            
              
                
                  
                    
                      	
                              Principal

                              $60,470.00

                            	
                              Loan
      Date

                              
                                03-05-2009

                              

                            	
                              Maturity

                              03-10-2014

                            	
                              Loan
      No.

                            	
                              Call/Coll

                                            452

                            	
                              Account

                            	
                              Officer

                              086

                            	
                              Initials

                            
	
                              References
      in the boxes above are for Lender's use only and do not limit the
      applicability of this document to any particular loan or
item.

                              Any
      item above containing "* * *" has been omitted due to text length
      limitations.

                            

                    

                  

                

              

            

          

        

         

      

    

    
      
        
          	
                  Borrower:

                	
                  AMERICAN
      CONSUMERS INC DBA SHOP RITE

                  55
      HANNAH WAY

                  ROSSVILLE,
      GA  30741

                	
                  Lender:

                	
                  GATEWAY
      BANK & TRUST

                  Main

                  5102
      Alabama Hwy

                  Ringgold,
      GA  30736

                  (706)
      965-5500

                
	 	 	 	 

        

      

    

    
      

    

    

    
      	
              Principal
      Amount:   $60,470.00

            	
              Date
      of Note:  March 5, 2009

            

    

    

    PROMISE TO PAY. AMERICAN
CONSUMERS, INC. DBA SHOP RITE ("Borrower") promises to pay to GATEWAY BANK &
TRUST ("Lender"), or order, in lawful money of the United States of America, the
principal amount of Sixty Thousand Four Hundred Seventy & 00/100 Dollars
($60,470.00), together with interest on the unpaid principal balance from March
5, 2009, until paid in full.

    

    PAYMENT.  Subject to
any payment changes resulting from changes in the Index, Borrower will pay this
loan in 60 payments of $1,172.65 each payment.  Borrower’s first
payment is due April 10, 2009, and all subsequent payments are due on the same
day of each month after that.  Borrower’s final payment will be due on
March 10, 2014, and will be for all principal and all accrued interest not yet
paid.  Payments include principal and interest.  Unless
otherwise agreed or required by applicable law, payments will be applied first
to any accrued unpaid interest; then to principal; then to any unpaid collection
costs; and then to any late charges. Borrower will pay Lender at Lender's
address shown above or at such other place as Lender may designate in
writing.

    

    VARIABLE INTEREST
RATE.  The interest rate on this Note is subject to change from
time to time based on changes in an independent index which is the Wall Street
Journal Prime Rate (the "Index").  The Index is not necessarily the
lowest rate charged by Lender on its loans.  If the Index becomes
unavailable during the term of this loan, Lender may designate a substitute
index after notifying Borrower.  Lender will tell Borrower the current
Index rate upon Borrower's request.  The interest rate change will not
occur more often than each month.  Borrower understands that Lender
may make loans based on other rates as well.  The Index currently is 3.250% per
annum.  The interest rate to be applied to the unpaid principal
balance of this Note will be calculated as  described
in  the “INTEREST CALCULATION METHOD”
paragraph  using  a rate of 0.500 percentage points over the
Index, adjusted if necessary for any minimum and maximum rate limitations
described below, resulting in an initial annual rate of simple interest, based
on a year of 360 days, of 6.000%.  NOTICE: Under no circumstances will
the interest rate on this Note be less than 6.000% per annum or more than the
maximum rate allowed by applicable law.  Whenever increases occur in
the interest rate, Lender, at its option, may do one or more of the following:
(A) increase Borrower’s payments to ensure Borrower’s loan will pay off by its
original final maturity date, (B) increase Borrower’s payments to cover accruing
interest, (C) increase the number of Borrower’s payments, and (D) continue
Borrower’s  payments at the same amount and increase Borrower’s final
payment.

    

    INTEREST CALCULTION
METHOD.  Interest on this Note is computed on a 365/360 basis;
that is, by applying the ratio of the interest rate over a year of 360 days,
multiplied by the outstanding principal balance, multiplied by the actual number
of days the principal balance is outstanding.  All interest payable
under this Note is computed using this method.

    

    PREPAYMENT; MINIMUM INTEREST
CHARGE.  Borrower agrees that all loan fees and other prepaid
finance charges are earned fully as of the date of the loan and will not be
subject to refund upon early payment (whether voluntary or as a result of
default), except as otherwise required by law.  In any event, even
upon full prepayment of this Note, Borrower understands that Lender is entitled
to a minimum interest charge of $ 10.00.  Other than Borrower's
obligation to pay any minimum interest charge, Borrower may pay without penalty
all or a portion of the amount owed earlier than it is due.  Early
payments will not, unless agreed to by Lender in writing, relieve Borrower of
Borrower's obligation to continue to make payments under the payment
schedule.  Rather, early payments will reduce the principal balance
due and may result in Borrower’s making fewer payments.  Borrower
agrees not to send Lender payments marked "paid in full", "without recourse", or
similar language.  If Borrower sends such a payment, Lender may accept
it without losing any of Lender's rights under this Note, and Borrower will
remain obligated to pay any further amount owed to Lender.  All
written communications concerning disputed amounts, including any check or other
payment instrument that indicates that the payment constitutes "payment in full"
of the amount owed or that is tendered with other conditions or limitations or
as full satisfaction of a disputed amount must be mailed or delivered to:
GATEWAY BANK & TRUST, Main, 5102 Alabama Hwy, Ringgold, GA
30736.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    LATE CHARGE.  If a
payment is 10 days or more late, Borrower will be charged 10.000% of the unpaid
portion of the regularly scheduled payment or $10.00, whichever is greater,
regardless of any partial payments Lender has received.

    

    INTEREST AFTER
DEFAULT.  Upon default, including failure to pay upon final
maturity, the total sum due under this Note will continue to accrue interest at
the interest rate under this Note.  However, in no event will the
interest rate exceed the maximum interest rate limitations under applicable
law.

    

    DEFAULT.  Each of
the following shall constitute an event of default ("Event of Default") under
this Note:

    

    Payment
Default. Borrower fails to make any payment when due
under this Note.

    

    Other
Defaults. Borrower fails to comply with or to
perform any other term, obligation, covenant or condition contained in this
Note or in any of the related documents or to comply with or to perform any
term, obligation, covenant or condition contained in any other
agreement between Lender and Borrower.

    

    Default in Favor of Third
Parties. Borrower or any Grantor
defaults under any loan, extension of credit, security agreement,
purchase or sales agreement, or any other agreement, in favor of any other
creditor or person that may materially affect any of Borrower's property or
Borrower's ability to repay this Note or perform Borrower's obligations
under this Note or
any of the related documents.

    

    False Statements. Any
warranty, representation or statement made or furnished to Lender by Borrower or
on Borrower's behalf under this Note or the related documents is false or
misleading in any material respect, either now or at the time made or furnished
or becomes false or misleading at any time thereafter.

     

    Insolvency. The dissolution or
termination of Borrower's existence as a going business, the insolvency of
Borrower, the appointment of a receiver for any part of Borrower's property, any
assignment for the benefit of creditors, any type of creditor workout, or the
commencement of any proceeding under any bankruptcy or insolvency laws by or
against Borrower.

    

    Creditor or Forfeiture
Proceedings. 
Commencement of foreclosure or forfeiture proceedings, whether by judicial
proceeding, self-help, repossession or any other method,
by any creditor of Borrower or by any governmental agency against any
collateral securing the loan.  This
includes a garnishment of any of Borrower's accounts,
including deposit accounts, with Lender.  However, this
Event of Default shall not apply if there is a good faith dispute by
Borrower as to the validity or reasonableness of
the claim which is the basis of the creditor or forfeiture
proceeding and
if Borrower gives Lender written notice of the creditor or forfeiture proceeding and deposits with Lender monies or a surety
bond for the creditor or forfeiture proceeding, in an amount
determined by Lender, in its sole discretion, as being an adequate
reserve or bond for the dispute.

    

    Events Affecting Guarantor.
Any of the preceding events occurs with respect to any Guarantor of any of the
indebtedness or any Guarantor dies or becomes incompetent, or revokes or
disputes the validity of, or liability under, any guaranty of the indebtedness
evidenced by this Note.

    

    Change In
Ownership. Any change in ownership of twenty-five
percent (25%) or more of the common stock of Borrower.

    

    Adverse Change. A
material adverse change occurs in
Borrower's financial condition, or Lender believes the prospect of payment
or performance of this Note is impaired.

    

    Insecurity. Lender in good faith believes itself insecure.

    

    LENDER'S
RIGHTS.  Upon default, Lender may declare the entire unpaid
principal balance under this Note and all accrued unpaid interest immediately
due, and then Borrower will pay that amount.

    

    ATTORNEYS' FEES;
EXPENSES.  Lender may hire or pay someone else to help collect
this Note if Borrower does not pay.  Borrower will pay Lender that
amount.  This includes, subject to any limits under applicable law,
Lender's costs of collection, including court costs and fifteen percent (15%) of
the principal plus accrued interest as attorneys' fees, if any sums owing under
this Note are collected by or through an attorney at law, whether or not there
is a lawsuit, and legal expenses for bankruptcy proceedings (including efforts
to modify or vacate any automatic stay or injunction), and
appeals.  If not prohibited by applicable law, Borrower also will pay
any court costs, in addition to all other sums provided by law.

    

    GOVERNING LAW.  This
Note will be governed by federal law applicable to Lender and, to the extent not
preempted by federal law, the laws of the State of Georgia without regard to its
conflicts of law provisions.  This Note has been accepted by Lender in
the State of Georgia.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      
        	
                PROMISSORY
      NOTE

                (Continued)

              
	
                Page
      2

              

      

    

    
       

      
         

      

    

    DISHONORED ITEM
FEE.  Borrower will pay a fee to Lender of $ 15.00 or five
percent (5%) of the face amount of the check, whichever is greater, if Borrower
makes a payment on Borrower's loan and the check or preauthorized charge with
which Borrower pays is later dishonored.

    

    RIGHT OF SETOFF.  To
the extent permitted by applicable law, Lender reserves a right of setoff in all
Borrower's accounts with Lender (whether checking, savings, or some other
account).  This includes all accounts Borrower holds jointly with
someone else and all accounts Borrower may open in the
future.  However, this does not include any IRA or Keogh accounts, or
any trust accounts for which setoff would be prohibited by
law.  Borrower authorizes Lender, to the extent permitted by
applicable law, to charge or setoff all sums owing on the indebtedness against
any and all such accounts, and, at Lender's option, to administratively freeze
all such accounts to allow Lender to protect Lender's charge and setoff rights
provided in this paragraph.

    

    COLLATERAL.  Borrower
acknowledges this Note is secured by UCC FILING ON ALL BUSINESS ASSETS, INCLUDED
BUT NOT LIMITED TO: ACCOUNTS, A/R, CASH FLOW, INVENTORY, FURNITURE, FIXTURES,
EQUIPMENT, MACHINERY, COMPUTERS, REGISTERS, LEASEHOLD IMPROVEMENTS, AND
ASSIGNMENT ON CD#XXXXXXXX WITH APPROXIMATE BALANCE OF $304,923.44.

    

    SUCCESSOR
INTERESTS.  The terms of this Note shall be binding upon
Borrower, and upon Borrower's heirs, personal representatives, successors and
assigns, and shall inure to the benefit of Lender and its successors and
assigns.

    

    GENERAL
PROVISIONS.  If any part of this Note cannot be enforced, this
fact will not affect the rest of the Note.  Lender may delay or forgo
enforcing any of its rights or remedies under this Note without losing
them.  Borrower and any other person who signs, guarantees or endorses
this Note, to the extent allowed by law, waive presentment, demand for payment,
and notice of dishonor.  Upon any change in the terms of this Note,
and unless otherwise expressly stated in writing, no party who signs this
Note,  whether as maker,  guarantor, accommodation maker or
endorser, shall be released from liability.  All such parties waive
any right to require Lender to take action against any other party who signs
this Note as provided in O.C.G.A.  Section 10-7-24 and agree that
Lender may renew or extend (repeatedly and for any length of time) this loan or
release any party or guarantor or collateral; or impair, fail to realize upon or
perfect Lender's security interest in the collateral; and take any other action
deemed necessary by Lender without the consent of or notice to
anyone.  All such parties also agree that Lender may modify this loan
without the consent of or notice to anyone other than the party with whom the
modification is made.  The obligations under this Note are joint and
several.

    

    THIS
NOTE IS GIVEN UNDER SEAL AND IT IS INTENDED THAT THIS NOTE IS AND SHALL
CONSTITUTE AND HAVE THE EFFECT OF A SEALED INSTRUMENT ACCORDING TO
LAW.

    

    

    BORROWER:

     

    
      
        
          
            
              
                	 	AMERICAN
      CONSUMERS INC DBA SHOP RITE	 	 	 	 
	 	 	 	 	 	 
	 By:	
                        /s/
      Michael A. Richardson

                      	 (Seal)	 By:	
                        /s/
      Paul R. Cook

                      	 (Seal)
	 	
                        MICHAEL A.
      RICHARDSON,  President of

                      	 	 	
                        PAUL R.
      COOK,  Chief  Financial  Officer  of

                      	 
	 	
                        
                          AMERICAN
      CONSUMERS INC DBA SHOP RITE

                        

                      	 	 	
                        
                          AMERICAN
      CONSUMERS INC DBA SHOP RITE

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