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Exhibit 10.44    
  

THIRD AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT  

        This
Third Amendment to Amended and Restated Credit Agreement (herein, the "Amendment") is made as of February 28, 2003, by and
among Morton Industrial Group, Inc., a Georgia corporation (the "Borrower"), the Lenders party to the Credit Agreement hereinafter identified and
defined, and Harris Trust and Savings Bank, as Agent for the Lenders (in such capacity, the "Agent"). 

RECITALS  

        A.    The
Lenders currently extend credit to the Borrower on the terms and conditions set forth in that certain Amended and Restated Credit Agreement dated as of
February 25, 2002, as amended, by and among the Borrower, the Guarantors, the Lenders, and the Agent (the "Credit Agreement"). All capitalized
terms used herein without definition shall have the same meanings herein as such terms have in the Credit Agreement. 

        B.    The
Borrower has requested that the Lenders extend the final maturity date of the Term Loans and the Revolving Credit, and make certain changes to the financial covenants
and the Borrowing Base and certain other terms and provisions set forth in the Credit Agreement, and the Lenders are willing to agree to such changes, all on the terms and conditions herein set forth. 

        NOW,
THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 

SECTION 1.    AMENDMENTS. 

        Subject
to the satisfaction of the conditions precedent set forth in Section 2 below, the Credit Agreement shall be and hereby is amended as follows: 

        1.1.    Section 1.2
of the Credit Agreement is hereby amended by deleting the last sentence thereof and replacing it with a new sentence to read in its entirety as
follows: 

From
and after the Third Amendment Effective Date, each Term Note shall mature in monthly installments, commencing on February 28, 2003 and continuing on the last day of each month occurring
thereafter to and including March 31, 2004, with the principal installments on the Term Notes to aggregate (i) $50,000 for the installment due on February 28, 2003,
(ii) $100,000 for the installment due on March 31, 2003, (iii) $350,000 for the installment due on April 30, 2003, (iv) $500,000 per installment thereafter and
through and including December 31, 2003, and (v) and $250,000 per installment thereafter and through and including March 31, 2004, and with a final principal payment on all the
Term Notes due on April 1, 2004 in an amount equal to all principal and interest not sooner paid, and with the amount of each payment due on the Term Note held by each Lender to be equal to
such Lender's Term Percentage of such payment. 

        1.2.    Section 3.1(e)
of the Credit Agreement is hereby amended and restated to read in its entirety as follows: 

        (e)    Restructuring, Amendment and Accrued Fees.    The Borrower shall pay to the Agent, for the ratable account of
the Lenders, the following fees: 

        (A)    the
restructuring fees referred to in the Credit Agreement as originally entered into, but payable as follows, namely, on the earliest of (i) April 1,
2004, (ii) the Termination Date (whether due to acceleration or otherwise) or (iii) the repayment in full of the aggregate principal amount of all Loans hereunder, the sum of
(1) $250,000, representing a restructuring fee earned on the Effective Date of the Credit Agreement and (2) $450,000, representing other fees due and owing to the Lenders on the
Effective Date of the Credit Agreement the payment of which has been deferred by agreement of the parties hereto; 

 

        (B)    a
Third Amendment restructuring fee in the amount of $300,000, such fee having been earned on the Third Amendment Effective Date and to be payable in six installments as
follows: (i) $50,000 per month commencing on October 10, 2003 and the 10th day of each month thereafter through and including March 10, 2004, and (ii) any
portion of such $300,000 fee remaining unpaid on the Termination Date shall become due and payable on the Termination Date; and 

        (C)    the
amendment fee of $300,000 provided for in the First Amendment to Amended and Restated Credit Agreement dated as of August 14, 2002, which fee was earned on
the effective date of such First Amendment to Amended and Restated Credit Agreement, and which fee the Borrower hereby agrees to pay (and the Lenders hereby agree to receive, notwithstanding the terms
of said First Amendment) in six installments as follows: (i) $50,000 per month commencing on April 10, 2003 and the 10th day of each month thereafter through and including
September 10, 2003, and (ii) any portion of such $300,000 fee remaining unpaid on the Termination Date shall become due and payable on the Termination Date. 

        1.3.    Section 3.3(a)
of the Credit Agreement is hereby amended and restated to read in its entirety as follows: 

        (a)    Excess Cash Flow.    No later than 45 days after the end of each of the first three fiscal quarters of
each fiscal year of the Borrower and 90 days after the end of the fourth fiscal quarter of each fiscal year of the Borrower, the Borrower shall pay over to the Agent for the ratable benefit of
the Lenders, as and for a mandatory prepayment, an amount equal to 50% of the amount by which EBITDA for such fiscal quarter exceeds the projected EBITDA for such fiscal quarter as identified in the
Approved Base Case, each such prepayment to be allocated to the Term Loans until repaid in full, and then to prepay the Revolving Loans and prefund any outstanding Letters of Credit. 

        1.4.    Section 3.3(d)
of the Credit Agreement is hereby amended by deleting the words "due on July 1, 2003" at the conclusion thereof and replacing them with the
words "due on April 1, 2004". 

        1.5.    The
definition of "Approved Base Case" set forth in Section 5.1 of the Credit Agreement is hereby amended and
restated to read in its entirety as follows: 

        "Approved Base Case" means the Borrower's final base case projections delivered to the Lenders on February 13, 2003 and covering
the period through December 31, 2003, to be supplemented by additional projections for the period through March 31, 2004 which additional projections shall be in form and substance
satisfactory to the Lenders and shall be delivered by October 1, 2003, and provided that if satisfactory additional projections are not delivered by October 1, 2003, the Approved Base
Case for the period from January 1, 2004 through March 31, 2004 shall be determined by the Agent in its sole discretion. 

        1.6.    The
definition of "Borrowing Base" set forth in Section 5.1 of the Credit Agreement is hereby amended and
restated to read in its entirety as follows: 

        "Borrowing Base" means, as of any time it is to be determined, the sum of: 

        (a)    85%
of the then net book value of Eligible Accounts (computed using the method of receivables valuation applied by the Borrower in accordance with GAAP which reflects
such value as the net book value of its receivables, except that net book value for such purposes shall not reflect any reserve for accounts more than ninety days past due that have already been
excluded from gross accounts in computing such Eligible Accounts) less such other reserves for uncollectibility, location of account debtor, contras and other matters as the Agent or Required Lenders
in good faith shall from time to time reasonably deem appropriate to adjust such net book value; plus

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        (b)    60%
of the value (computed at its cost using the method of inventory valuation applied by the Borrower in accordance with GAAP which reflects such cost on the Borrower's
books as its net book value, but in any event after reducing such value as so computed by the aggregate amount of all reserves for obsolescence, slow-moving items, shrinkage and all such
other matters as the Agent or Required Lenders in good faith shall from time to time reasonably deem appropriate to adjust such net book value) of Eligible Inventory;  plus

        (c)    the
Other Asset Value then in effect; 

provided that the Borrowing Base shall be computed only as against and on so much of the Collateral as is included on the certificates to be furnished
from time to time by the Borrower pursuant to Section 8.5(f) hereof and, if required by the Agent pursuant to any of the terms hereof or any Collateral Document, as verified by such other
evidence required to be furnished to the Agent pursuant hereto or pursuant to any such Collateral Document. Notwithstanding the foregoing to the contrary: (i) the amount of Eligible Accounts
otherwise included in the Borrowing Base shall be reduced, dollar for
dollar, by a reserve equal to the amount (if any) by which (x) the aggregate amount of accounts payable owing by the Borrower and its Subsidiaries to Deere and Caterpillar and their respective
Affiliates for inventory and supplies purchased (the "Deere/Caterpillar Payables") at any time exceeds (y) $3,000,000; (ii) no reserve
will be imposed in computing the Borrowing Base as of any time solely in respect of the Deere/Caterpillar Payables to the extent the same do not exceed such limit; and (iii) the Agent and the
Required Lenders shall have the right to impose reserves for other matters arising in connection with receivables owing by Deere and Caterpillar and to otherwise impose reserves in accordance with the
Credit Agreement. 

        1.7.    The
definitions of "EBIT" and "EBITDA" set forth in Section 5.1
of the Credit Agreement are each hereby amended and restated to read in their entirety as follows: 

        "EBIT" means, with reference to any period, Consolidated Net Income for such period plus all amounts deducted in arriving at such
Consolidated Net Income for such period in respect of (i) Interest Expense for such period, plus (ii) federal, state and local income
taxes for such period, plus (iii) with respect to any applicable accounting period of the Borrower during fiscal 2002, to the extent such charges
against Consolidated Net Income are reflected on the Borrower's annual audited financial statements for fiscal 2002, (x) non-cash charges reflecting impairment charges arising from
SFAS No. 142 (Goodwill and Other Intangible Assets), for such period, (y) non-cash charges for accretion of discount on preferred stock of the Borrower for such period, and
(z) charges for workers' compensation reserves, inventory valuation adjustments, group health care reserves and other year-end adjustments for such period not exceeding in the
aggregate for all charges described in this clause (z) $1,000,000 in charges for all of fiscal 2002. 

        "EBITDA" means, with reference to any period, Consolidated Net Income for such period plus all amounts deducted in arriving at such
Consolidated Net Income for such period in respect of (i) Interest Expense for such period, plus (ii) federal, state and local income
taxes for such period, plus (iii) all amounts properly charged for depreciation of fixed assets and amortization of intangible assets during such
period on the books of the Borrower and its Subsidiaries, plus (iv) with respect to any applicable accounting period of the Borrower during
fiscal 2002, to the extent such charges against Consolidated Net Income are reflected on the Borrower's annual audited financial statements for fiscal 2002, (x) non-cash charges
reflecting impairment charges arising from SFAS No. 142 (Goodwill and Other Intangible Assets), for such period, (y) non-cash charges for accretion of discount on preferred
stock of the Borrower for such period, and (z) charges for workers' compensation reserves, inventory valuation 

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adjustments, group health care reserves and other year-end adjustments for such period not exceeding in the aggregate for all charges described in this clause (z) $1,000,000 in
charges for all of fiscal 2002. 

        1.8.    The
definition of "Interest Expense" set forth in Section 5.1 of the Credit Agreement is hereby amended and
restated to read in its entirety as follows: 

        "Interest Expense" means, with reference to any period (the "measurement period"), the sum
of all interest charges with respect to Indebtedness (including imputed interest charges with respect to Capitalized Lease Obligations and all amortization of debt discount and expense) of the
Borrower and its Subsidiaries for such measurement period determined in accordance with GAAP. 

        1.9.    The
definition of "Other Asset Value" set forth in Section 5.1 of the Credit Agreement is hereby amended and
restated to read in its entirety as follows: 

        "Other Asset Value" means (a) from the Third Amendment Effective Date through and including March 1, 2003, $5,000,000, and
(b) on and after March 1, 2003, $3,500,000, provided that such Other Asset Value shall be further reduced (but not below $0), effective 45 days after the end of each of the first
three fiscal quarters of each fiscal year of the Borrower and 90 days after the end of the fourth fiscal quarter of each fiscal year of the Borrower, by 50% of the amount by which EBITDA for
such fiscal quarter exceeds the projected EBITDA for such fiscal quarter as identified in the Approved Base Case. 

        1.10.    The
definition of "Termination Date" set forth in Section 5.1 of the Credit Agreement is hereby amended and
restated to read in its entirety as follows: 

        "Termination Date" means (x) April 1, 2004, or (y) if earlier, such earlier date on which the Revolving Credit
Commitments are terminated in whole pursuant to Sections 3.4, 9.2 or 9.3 hereof. 

        1.11.    Section 5.1
of the Credit Agreement is hereby amended by adding a new definition of "Third Amendment Effective
Date" thereto in its appropriate order in the alphabetical sequence, such definition to read in its entirety as follows: 

        "Third Amendment Effective Date" means the date upon which the Third Amendment to Amended and Restated Credit Agreement by and among the
Borrower, the Lenders and the Agent setting forth certain amendments to this Agreement becomes effective pursuant to its terms. 

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        1.12.    Section 8.6
of the Credit Agreement is hereby amended and restated to read in its entirety as follows: 

        Section 8.6.    Interest Coverage Ratio.    The Borrower will, as of the last day of each monthly accounting
period of the Borrower ending on or about any date specified below, maintain an Interest Coverage Ratio as of such date of not less than: 

	PERIOD ENDING ON OR ABOUT
	 	INTEREST COVERAGE RATIO

SHALL NOT BE LESS THAN

	January 31, 2003	 	0.75 to 1.0
	

February 28, 2003	
 	

0.70 to 1.0
	

March 31, 2003	
 	

0.65 to 1.0
	

April 30, 2003	
 	

0.65 to 1.0
	

May 31, 2003	
 	

0.58 to 1.0
	

June 30, 2003	
 	

0.65 to 1.0
	

July 31, 2003	
 	

0.74 to 1.0
	

August 31, 2003	
 	

0.80 to 1.0
	

September 30, 2003	
 	

0.80 to 1.0
	

October 31, 2003	
 	

0.85 to 1.0
	

November 30, 2003	
 	

0.95 to 1.0
	

December 31, 2003	
 	

1.05 to 1.0
	

January 31, 2004	
 	

1.05 to 1.0
	

February 28, 2004	
 	

1.05 to 1.0
	

March 31, 2004	
 	

1.05 to 1.0

        1.13.    Section 8.7
of the Credit Agreement is hereby amended and restated to read in its entirety as follows: 

Section 8.7.    Cash Flow Leverage Ratio.    The Borrower shall not, at any time during any monthly accounting period of the
Borrower ending on or about any date specified below, 

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permit the Cash Flow Leverage Ratio at any time during such monthly accounting period to be greater than: 

	PERIOD ENDING ON OR ABOUT
	 	CASH FLOW LEVERAGE

RATIO SHALL NOT

BE GREATER THAN

	January 31, 2003	 	5.20 to 1.0
	

February 28, 2003	
 	

5.20 to 1.0
	

March 31, 2003	
 	

5.40 to 1.0
	

April 30, 2003	
 	

5.35 to 1.0
	

May 31, 2003	
 	

5.50 to 1.0
	

June 30, 2003	
 	

5.45 to 1.0
	

July 31, 2003	
 	

5.10 to 1.0
	

August 31, 2003	
 	

5.00 to 1.0
	

September 30, 2003	
 	

5.00 to 1.0
	

October 31, 2003	
 	

4.90 to 1.0
	

November 30, 2003	
 	

4.75 to 1.0
	

December 31, 2003	
 	

4.60 to 1.0
	

January 31, 2004	
 	

4.50 to 1.0
	

February 28, 2004	
 	

4.40 to 1.0
	

March 31, 2004	
 	

4.20 to 1.0

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        1.14.    Section 8.8
of the Credit Agreement is hereby amended and restated to read in its entirety as follows: 

Section 8.8.    EBITDA.    The
Borrower will maintain EBITDA for each twelve fiscal month period ending on the dates specified below in an amount not less than the sum
indicated to the right of such date below: 

	TWELVE FISCAL MONTH

PERIOD ENDING
	 	EBITDA SHALL NOT

BE LESS THAN:

	January 31, 2003	 	$	10,100,000
	

February 28, 2003	
 	
$	

9,700,000
	

March 31, 2003	
 	
$	

9,400,000
	

April 30, 2003	
 	
$	

9,400,000
	

May 31, 2003	
 	
$	

9,200,000
	

June 30, 2003	
 	
$	

9,200,000
	

July 31, 2003	
 	
$	

9,400,000
	

August 31, 2003	
 	
$	

9,600,000
	

September 30, 2003	
 	
$	

9,600,000
	

October 31, 2003	
 	
$	

9,600,000
	

November 30, 2003	
 	
$	

9,800,000
	

December 31, 2003	
 	
$	

10,000,000
	

January 1, 2004	
 	
$	

10,100,000
	

February 1, 2004	
 	
$	

10,100,000
	

March 1, 2004	
 	
$	

10,100,000

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        1.15.    Section 8.9
of the Credit Agreement is hereby amended and restated to read in its entirety as follows: 

        Section 8.9.    Fixed Charge Coverage Ratio.    The Borrower will not, as of the last day of each monthly
accounting period of the Borrower ending on or about any date specified below, permit the Fixed Charge Coverage Ratio to be less than: 

	PERIOD ENDING ON OR ABOUT
	 	FIXED CHARGE LEVERAGE

RATIO SHALL NOT BE

GREATER THAN

	January 31, 2003	 	0.95 to 1.0
	

February 28, 2003	
 	

0.95 to 1.0
	

March 31, 2003	
 	

0.95 to 1.0
	

April 30, 2003	
 	

0.94 to 1.0
	

May 31, 2003	
 	

0.91 to 1.0
	

June 30, 2003	
 	

0.93 to 1.0
	

July 31, 2003	
 	

0.95 to 1.0
	

August 31, 2003	
 	

0.98 to 1.0
	

September 30, 2003	
 	

0.98 to 1.0
	

October 31, 2003	
 	

0.98 to 1.0
	

November 30, 2003	
 	

1.00 to 1.0
	

December 31, 2003	
 	

1.05 to 1.0
	

January 31, 2004	
 	

1.10 to 1.0
	

February 28, 2004	
 	

1.10 to 1.0
	

March 31, 2004	
 	

1.15 to 1.0

        1.16.    Section 8.10
of the Credit Agreement is hereby amended and restated to read in its entirety as follows: 

        Section 8.10.    Capital Expenditures.    The Borrower will not, nor will it permit any Subsidiary to, expend
or (without duplication) become obligated to expend, in each case for Capital Expenditures aggregating for the Borrower and its Subsidiaries (taken together) in excess of $2,500,000 during fiscal 2003
and $1,000,000 during the period from January 1, 2004 through and including the Termination Date. 

SECTION 2.    CONDITIONS
PRECEDENT. 

        The
effectiveness of this Amendment is subject to the satisfaction of all of the following conditions precedent: 

        2.1.    The
Borrower, the Agent, and the Lenders shall have executed and delivered this Amendment, and the Guarantors shall have executed and delivered their consent to this
Amendment in the space provided for that purpose below. 

        2.2.    The
Borrower and the holders of the Bank Warrants shall have executed and delivered amendments thereto in form satisfactory to each such holder extending the Expiration
Dates (as defined in the Bank Warrants) to December 31, 2005. 

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        2.3.    The
Borrower shall have delivered to the Agent certified copies of resolutions of the Board of Directors of the Borrower and each Guarantor authorizing the execution
and delivery of this Amendment. 

        2.4.    Legal
matters incident to this Amendment shall be satisfactory to the Agent and the Lenders and their counsel. 

        2.5.    The
Borrower shall have paid all fees and expenses of counsel to the Agent with respect to the preparation of this Amendment as well as all prior fees and charges of
counsel to the Agent incurred prior to the date hereof which remain outstanding and unpaid. 

        2.6.    The
Borrower shall have delivered to the Agent a fully executed copy of an agent's fee letter relating to the Credit Agreement. 

        2.7.    The
Borrower shall have executed and delivered to the Agent supplements to each mortgage delivered under the Credit Agreement, duly executed, reflecting the terms of
this Amendment. 

        2.8.    The
Borrower shall have consented to be delivered to the Agent a date-down endorsement for each policy of title insurance and all endorsements thereunder
delivered in connection with the Credit Agreement in form and substance acceptable to the Agent from the issuer of such policy or another title insurance company acceptable to the Agent, maintaining
the existing level of coverage under each such policy, provided that any such endorsements which are not available on the effective date hereof will be
delivered by the Borrower not later than 90 days after the effective date hereof. 

SECTION 3.    REPRESENTATIONS.

        In
order to induce the Lenders to execute and deliver this Amendment, the Borrower hereby represents to the Lenders that as of the date hereof, and after giving effect to this Amendment,
(a) the representations and warranties set forth in Section 6 of the Credit Agreement are and shall be and remain true and correct in all material respects (except that for purposes of
this paragraph the representations contained in Section 6.4 shall be deemed to refer to the most recent financial statements of the Borrower delivered to the Lenders) and (b) the
Borrower is in full compliance with all of the terms and conditions of the Credit Agreement after giving effect to this Amendment and no Default or Event of Default has occurred and is continuing
under the Credit Agreement or shall result after giving effect to this Amendment. 

SECTION 4.    RELEASE
OF CLAIMS. 

        TO
INDUCE THE LENDERS AND THE AGENT TO ENTER INTO THIS AMENDMENT, THE BORROWER AND THE GUARANTORS HEREBY RELEASE, ACQUIT, AND FOREVER DISCHARGE THE LENDERS, THE AGENT AND THEIR
AFFILIATES AND THEIR RESPECTIVE OFFICERS, DIRECTORS, AGENTS, ATTORNEYS, ADVISORS, CONSULTANTS, EMPLOYEES, SUCCESSORS AND ASSIGNS, FROM ALL LIABILITIES, CLAIMS, DEMANDS, ACTIONS, AND CAUSES OF ACTION
OF ANY KIND (IF THERE ARE ANY), WHETHER ABSOLUTE OR CONTINGENT, DUE OR TO BECOME DUE, DISPUTED OR UNDISPUTED, AT LAW OR IN EQUITY, THAT THEY NOW HAVE OR EVER HAD AGAINST THE LENDERS, THE AGENT AND THE
OTHER PARTIES IDENTIFIED ABOVE, OR ANY ONE OR MORE OF THEM INDIVIDUALLY, UNDER OR IN CONNECTION WITH THE CREDIT AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS. 

SECTION 5.    MISCELLANEOUS.

        5.1.    The
Borrower has heretofore executed and delivered to the Agent and the Lenders certain of the Collateral Documents. The Borrower hereby acknowledges and agrees that,
notwithstanding the execution and delivery of this Amendment, the Collateral Documents remain in full force and effect and the rights and remedies of the Agent and the Lenders thereunder, the
obligations of the Borrower 

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thereunder, and the liens and security interests created and provided for thereunder remain in full force and effect and shall not be affected, impaired, or discharged hereby. Nothing herein
contained shall in any manner affect or impair the priority of the liens and security interests created and provided for by the Collateral Documents as to the indebtedness which would be secured
thereby prior to giving effect to this Amendment. 

        5.2.    Except
as specifically amended herein or waived hereby, the Credit Agreement shall continue in full force and effect in accordance with its original terms. Reference to
this specific Amendment need not be made in the Credit Agreement, the Notes, or any other instrument or document executed in connection therewith, or in any certificate, letter or communication issued
or made pursuant to or with respect to the Credit Agreement, any reference in any of such items to the Credit Agreement being sufficient to refer to the Credit Agreement as amended hereby. 

        5.3.    The
Borrower agrees to pay all reasonable out-of-pocket costs and expenses incurred by the Agent and the Lenders in connection with the
preparation, execution and delivery of this Amendment and the documents and transactions contemplated hereby, including the reasonable fees and expenses of counsel for the Agent with respect to the
foregoing. 

        5.4.    This
Amendment may be executed in any number of counterparts, and by the different parties on different counterpart signature pages, all of which taken together shall
constitute one and the same agreement. Any of the parties hereto may execute this Amendment by signing any such counterpart
and each of such counterparts shall for all purposes be deemed to be an original. This Amendment shall be governed by the internal laws of the State of Illinois. 

        [SIGNATURE
PAGES TO FOLLOW] 

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        This
Third Amendment to Amended and Restated Credit Agreement is entered into by the parties hereto as of the date and year first above written. 

	

 	
 	

MORTON INDUSTRIAL GROUP, INC.
	

 	
 	

By	

 	

 
	 	 	 	Name	 
	 	 	 	 	

	 	 	 	Title	 
	 	 	 	 	

	

 	
 	

Accepted and agreed to.
	

 	
 	

HARRIS TRUST AND SAVINGS BANK
	

 	
 	

By	

 	

 
	 	 	 	Name	 
	 	 	 	 	

	 	 	 	Title	 
	 	 	 	 	

	

 	
 	

BRANCH BANKING & TRUST CO.
	

 	
 	

By	

 	

 
	 	 	 	Name	 
	 	 	 	 	

	 	 	 	Title	 
	 	 	 	 	

	

 	
 	

U.S. BANK NATIONAL ASSOCIATION

f/k/a Firstar Bank, N.A.
	

 	
 	

By	

 	

 
	 	 	 	Name	 
	 	 	 	 	

	 	 	 	Title	 
	 	 	 	 	

	

 	
 	

LASALLE BANK NATIONAL ASSOCIATION
	

 	
 	

By	

 	

 
	 	 	 	Name	 
	 	 	 	 	

	 	 	 	Title	

	

 	
 	

NATIONAL CITY BANK
	

 	
 	

By	

 	

 
	 	 	 	Name	 
	 	 	 	 	

	 	 	 	Title	 
	 	 	 	 	

-11-

 
GUARANTORS' ACKNOWLEDGEMENT AND CONSENT  

        Each of the undersigned hereby acknowledges and agrees that it is a Guarantor under the terms of Section 11 of the Credit Agreement and, as such has
executed and delivered certain Collateral Documents pursuant to the Credit Agreement. The undersigned hereby consent to the Third Amendment to Amended and Restated Credit Agreement as set forth above
and agree to the terms thereof, including, without limitation, Section 4 thereof, and the undersigned hereby confirm that their guaranties and the Collateral Documents executed by them, and all
of the obligations of the undersigned thereunder, remain in full force and effect. The undersigned further agree that the consent of the undersigned to any further amendments to the Credit Agreement
shall not be required as a result of this consent having been obtained. The undersigned acknowledge the Lenders are relying on this acknowledgement and consent in entering into the Third Amendment to
Amended and Restated Credit Agreement with the Borrower. 

	

 	
 	

MORTON METALCRAFT CO.
	

 	
 	

By	

 	

 
	 	 	 	Name	 
	 	 	 	 	

	 	 	 	Title	 
	 	 	 	 	

	

 	
 	

MORTON METALCRAFT CO. OF NORTH CAROLINA
	

 	
 	

By	

 	

 
	 	 	 	Name	 
	 	 	 	 	

	 	 	 	Title	 
	 	 	 	 	

	

 	
 	

MORTON METALCRAFT CO. OF SOUTH CAROLINA
	

 	
 	

By	

 	

 
	 	 	 	Name	 
	 	 	 	 	

	 	 	 	Title	 
	 	 	 	 	

	

 	
 	

MID CENTRAL PLASTICS, INC.
	

 	
 	

By	

 	

 
	 	 	 	Name	 
	 	 	 	 	

	 	 	 	Title	 
	 	 	 	 	

	

 	
 	

B&W METAL FABRICATORS, INC.
	

 	
 	

By	

 	

 
	 	 	 	Name	 
	 	 	 	 	

	 	 	 	Title	 
	 	 	 	 	

-12-

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Exhibit 10.24    
    MODIFICATION, EXTENSION AND RENEWAL OF PROMISSORY NOTE    
  

	Date:	 	Effective December 30, 2002	 	 
	

Maker:	
 	

Schlotzsky's, Inc.	
 	

 
	

Maker's Mailing Address (including county):	
 	

203 Colorado Street

Austin, Travis County, TX 78701
	

Payee:	
 	

Jeffrey J. Wooley	
 	

 
	

Place for Payment (including county):	
 	

203 Colorado Street

Austin, Travis County, TX 78701
	

Principal Amount:	
 	

$112,500.00	
 	

 

Annual Interest Rate on Unpaid Principal from Date:        7% 

Annual
Interest Rate on Matured, Unpaid Amounts: 

        Maximum
non-usurious rate allowed by applicable law. 

Terms
of Payment (principal and interest)

        Interest only shall be paid monthly on the last day of each month.

        Principal shall be due and payable on January 31, 2004. 

This
note may be prepaid at any time without penalty. 

Maker
promises to pay to the order of Payee at the place for payment and according to the terms of payment the principal amount plus interest at the rates stated above. All unpaid amounts shall be due
by the final scheduled payment date. 

If
Maker defaults in the payment of this note or in the performance of any obligation in any instrument securing or collateral to it, and the default continues after Payee gives Maker notice of the
default and the time within which it must be cured, as may be required by law or by written agreement, then Payee may declare the unpaid principal balance and earned interest on this note immediately
due. Maker and each surety, endorser, and guarantor waive all demands for payment, presentations for payment, notices of intention to accelerate maturity, notices of acceleration of maturity,
protests, and notices of protest, to the extent permitted by law. 

If
this note or any instrument securing or collateral to it is given to an attorney for collection or enforcement, or if suit is brought for collection or enforcement, or if it is collected or
enforced through probate, bankruptcy, or other judicial proceeding, then Maker shall pay Payee all costs of collection and enforcement, including reasonable attorney's fees and court costs, in
addition to other amounts due. 

Interest
on the debt evidenced by this note shall not exceed the maximum amount of non-usurious interest that may be contracted for, taken, reserved, charged, or received under law; any
interest in excess of that maximum amount shall be credited on the principal of the debt or, if that has been paid, refunded. On any acceleration or required or permitted prepayment, any such excess
shall be canceled automatically as of the acceleration or prepayment or, if already paid, credited on the principal of the debt or, if the principal of the debt has been paid, refunded. This provision
overrides other provisions in this and all other instruments concerning the debt. 

This
Note is in renewal, extension and modification of that one certain Promissory Note in the original principal amount of $112,500.00 between Maker and Payee dated effective January 31, 2002. 

Each
Maker is responsible for all obligations represented by this note. 

 

When
the context requires, singular nouns and pronouns include the plural. 

	Maker:	 	 
	

Schlotzsky's, Inc.	
 	

 
	

By:	

 	
 	

 
	 	
	 	 
	Name:	Richard H. Valade
	 	 
	Title:	Executive Vice President and Treasurer
	 	 

2

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Exhibit 10.24 MODIFICATION, EXTENSION AND RENEWAL OF PROMISSORY NOTE

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