Document:

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                                                                    EXHIBIT 10.3

                   FIRST AMENDMENT TO THE CELERIS CORPORATION
                  1995 NON-EMPLOYEE DIRECTOR STOCK OPTION PLAN

         The Celeris Corporation 1995 Non-Employee Director Stock Option Plan
(the "Plan") was approved by the Board of Directors of Celeris Corporation (the
"Company") on July 24, 2001. The Plan originally provided that 100,000 shares of
the Company's common stock, $.01 par value, ("Common Stock") could be issued
under the Plan. Pursuant to a one-for-one and one half reverse stock split that
occurred on June 15, 1995 and a one-for-three reverse stock split that occurred
on July 26, 1999 and by operation of Section 11, the Plan now provides that
22,222 shares of Stock may be issued under the Plan. Section 13 of the Plan
provides that the number of shares of Common Stock that may be issued under the
Plan may be increased by approval of the Board of Directors. The Board of
Directors has approved an amendment to the Plan increasing the number of shares
of Common Stock that may be issued under the Plan by 77,778 shares so that a
total of 100,000 shares of Stock may be issued under the Plan. Furthermore, the
Board of Directors now desires to amend Section 6(a) of the Plan.

         THEREFORE, the Plan shall be amended by deleting Section 4 in its
entirety and replacing it with a new Section 4 so that, as amended, said Section
4 shall read as follows:

                           Section 4. Stock Subject to the Plan. Subject to the
                  provisions of Section 11 hereof, the stock to be subject to
                  options under the Plan shall be authorized but unissued shares
                  of the Company's common stock, par value $.01 per share (the
                  "Common Stock"). Subject to adjustment as provided in Section
                  11 hereof, the maximum number of shares with respect to which
                  options may be exercised under this Plan shall be 100,000 as
                  of July 24, 2001. If an option under the Plan expires, or for
                  any reason is terminated, any shares that have not been
                  purchased upon exercise of the option prior to the expiration
                  of termination date shall again be available for options
                  thereafter granted during the term of the Plan.

          THEREFORE, the Plan shall further be amended by deleting Section 6(a)
in its entirety and replacing it with a new Section 4 so that, as amended, said
Section 4 shall read as follows:

         (a)      Annual Option Grants. Each non-employee director shall be
                  granted the right to purchase 2,222 shares of Common Stock at
                  the time of his or her initial appointment to the board of
                  Directors. Additionally, each non-employee director shall be
                  granted the right to purchase 667 shares of Common Stock
                  automatically on the first business day immediately following
                  each annual meeting of the Company's shareholders (the "Annual
                  Option Grant Date") held during the term of the Plan,
                  beginning with the 1995 annual meeting of the shareholders (if
                  the Plan becomes effective pursuant to Section 12 before or at
                  such meeting).

         Except as expressly modified and amended by this amendment, the
provisions of the Plan shall remain in full force and effect as of the date
hereof.Exhibit 10.1

                       THIRD AMENDMENT TO CREDIT AGREEMENT

     THIS THIRD  AMENDMENT TO CREDIT  AGREEMENT  (this  "AMENDMENT") is made and
entered into as of ______________,  2001 by and between POORE BROTHERS,  INC., a
Delaware  corporation  ("PBI"),   POORE  BROTHERS  ARIZONA,   INC.,  an  Arizona
corporation ("PBAI"), POORE BROTHERS DISTRIBUTING,  INC., an Arizona corporation
("PBDI"), TEJAS PB DISTRIBUTING,  INC., an Arizona corporation ("TEJAS"),  POORE
BROTHERS - BLUFFTON,  LLC (formerly known as Wabash Foods,  LLC  ("WABASH")),  a
Delaware  limited  liability  company ("PBB"),  BOULDER NATURAL FOODS,  INC., an
Arizona  corporation  ("BOULDER"),  and BN FOODS,  INC., a Colorado  corporation
("BNF") (PBI,  PBAI,  PBDI,  Tejas,  PBB,  Boulder and BNF each a "BORROWER" and
collectively  the  "BORROWER"  or  the  "BORROWERS"),  and  U.S.  BANK  NATIONAL
ASSOCIATION,  a national  banking  association,  successor  in  interest to U.S.
BANCORP  REPUBLIC  COMMERCIAL  FINANCE,   INC.,  a  Minnesota  corporation  (the
"LENDER").

                                    RECITALS:

     A. PBI, PBAI,  PBDI,  Tejas,  PBB (as Wabash) and the Lender entered into a
certain Credit Agreement dated as of October 3, 1999, as amended by that certain
First  Amendment to Credit  Agreement  dated as of June 30, 2000, and as further
amended by that certain Second  Amendment to Credit  Agreement dated as of March
1,  2001 (as  amended,  the  "Credit  Agreement").  All  capitalized  terms  not
otherwise  defined  herein shall have the  meanings  given to them in the Credit
Agreement.

     B. Boulder became a party to, and a "Borrower"  under, the Credit Agreement
pursuant to the terms and conditions of that certain Joinder  Agreement dated as
of June 7, 2000 by and between Boulder,  Lender,  PBI, PBAI, PBDI, Tejas and PBB
(as Wabash).

     C. BNF  became a party to, and a  "Borrower"  under,  the Credit  Agreement
pursuant to the terms and conditions of that certain Joinder  Agreement dated as
of June 30, 2000 by and between BNF,  Lender,  PBI, PBAI,  PBDI,  Tejas, PBB (as
Wabash) and Boulder.

     D. The Borrowers have requested the Lender to amend the Credit Agreement to
provide for (i) an increase in the  Revolving  Commitment  Amount (as defined in
the Credit  Agreement) to $5,000,000,  (ii) a new $500,000  capital  expenditure
line of credit, and (iii) certain  modifications to the financial  covenants set
forth therein.  The Lender has agreed to do so upon the terms and subject to the
conditions herein set forth.

                                   AGREEMENTS:

     NOW,  THEREFORE,  in  consideration  of the mutual covenants and agreements
hereinafter  set  forth,  and  for  One  Dollar  and  other  good  and  valuable
consideration,   the  nature,  receipt  and  sufficiency  of  which  are  hereby
acknowledged, the parties hereto hereby agree as follows:
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     1. DELIVERY OF DOCUMENTS.  At or prior to the execution of this  Amendment,
Borrowers  shall  have  delivered  or caused to be  delivered  to the Lender the
following documents each dated such date and in form and substance  satisfactory
to the Lender and duly executed by all appropriate parties:

          (a)  This Amendment;

          (b)  Revolving Note in the form attached hereto;

          (c)  Capital Expenditure Note in the form attached hereto;

          (d)  Acknowledgment  and  Consent of  Subordinated  Lender  from Wells
               Fargo  Small  Business  Investment  Company,  Inc.  in  the  form
               attached hereto;

          (e)  The Articles of Merger of PBDI with and into PBI, for filing with
               the State of Arizona;

          (f)  The Plan and Agreement of Merger of PBDI with and into PBI;

          (g)  The  Certificate  of  Ownership  and Merger of PBDI with and into
               PBI, for filing with the State of Delaware;

          (h)  The Unanimous  Consent of the Directors of PBDI  authorizing  the
               merger transaction  contemplated by the documents listed in items
               1(e)-1(g) above;

          (i)  The Unanimous  Consent of Directors of PBI authorizing the merger
               transaction   contemplated  by  the  documents  listed  in  items
               1(e)-(g) above;

          (j)  The Articles of Merger of PBAI with and into PBI, for filing with
               the State of Arizona;

          (k)  The Plan and Agreement of Merger of PBAI with and into PBI;

          (l)  The  Certificate  of  Ownership  and Merger of PBAI with and into
               PBI, for filing with the State of Delaware;

          (m)  The Unanimous  Consent of the Directors of PBAI  authorizing  the
               merger transaction  contemplated by the documents listed in items
               1(j)-1(l) above;

          (n)  The Unanimous  Consent of Directors of PBI authorizing the merger
               transaction   contemplated  by  the  documents  listed  in  items
               1(j)-(l) above;

          (o)  Evidence of the conversion of the  subordinated  debt  previously
               held by Renaissance Capital Growth and Income Fund III, Inc. into
               capital stock of PBI;

          (p)  Evidence  of payment to Lender of a fully  earned,  nonrefundable
               facility increase fee of $20,000;

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          (q)  Evidence  of payment to Lender of a fully  earned,  nonrefundable
               origination  fee  of  $5,000  with  respect  to the  new  capital
               expenditure line of credit; and

          (r)  Such other  documents or instruments as the Lender may reasonably
               require, including, without limitation, any financing statements,
               notices or other  instruments,  required by Lender to evidence or
               perfect more  effectively the security  interest of Lender in the
               Collateral (as that term is defined in the Security Agreement).

     2. AMENDMENTS.

          SECTION 2.1. DEFINED TERMS.

          (a) The following terms defined in Section 1.1 of the Credit Agreement
     are hereby amended and restated in their entirety to read as follows:

               "NOTES":  The  Revolving  Note,  the Term  Notes and the  Capital
               Expenditure Loan Note.

               "REVOLVING COMMITMENT AMOUNT": An amount equal to $5,000,000.

          (b) The  definition of "Facility  Amount" in Section 2.1 of the Credit
     Agreement is hereby deleted in its entirety.

          (c) The following new defined terms are hereby added to Section 1.1 of
     the Credit Agreement:

               "CAPITAL EXPENDITURE LOAN": As defined in Section 2.1(f).

               "CAPITAL EXPENDITURE LOAN AMOUNT": As defined in Section 2.1(f).

               "CAPITAL  EXPENDITURE  LOAN  AVAILABILITY  TERMINATION  DATE": As
               defined in Section 2.1(f).

               "CAPITAL  EXPENDITURE  LOAN  COMMITMENT":  The  obligation of the
               Lender to make  Capital  Expenditure  Loans to the Borrower up to
               the Capital Expenditure Loan Amount upon the terms and subject to
               the conditions and limitations of this Agreement.

               "CAPITAL EXPENDITURE LOAN NOTE": As defined in Section 2.3.

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               "COMMITMENTS":   The  Revolving  Commitment,   the  Term  Loan  A
               Commitment,   the  Term  Loan  B  Commitment,  the  Term  Loan  C
               Commitment,   the  Term  Loan  D   Commitment   and  the  Capital
               Expenditure Loan Commitment.

               "FACILITY  AMOUNT":  An amount equal to the sum of the  Revolving
               Commitment Amount,  plus the Term Loan A Commitment Amount,  plus
               the  Term  Loan  B  Commitment  Amount,  plus  the  Term  Loan  C
               Commitment Amount,  plus the Term Loan D Commitment Amount,  plus
               the Capital Expenditure Loan Amount.

               "QUALIFIED  CAPITAL  EXPENDITURE":  A Capital  Expenditure  which
               meets the following requirements:

                    (a) it  arises  in the  ordinary  course  of the  Borrower's
               business;

                    (b) no portion thereof has been paid by or financed with any
               other Person;

                    (c)  the  capital   assets   acquired   with  such   Capital
               Expenditure  are in good and workable  conditions,  ordinary wear
               and tear excepted;

                    (d)  the  capital   assets   acquired   with  such   Capital
               Expenditure  are not  subject to any prior  assignment,  claim or
               Lien other than (i) a first priority Lien in favor of the Lender,
               and (ii) Liens consented to by the Lender in writing;

                    (e)  the  capital   assets   acquired   with  such   Capital
               Expenditure  comply with the  Borrower's  specifications  and has
               been delivered to and accepted by the Borrower;

                    (f) there exists no dispute with respect thereto between the
               Borrower and the  manufacturer  or supplier of the capital assets
               acquired  with  such  Capital  Expenditure   including,   without
               limitation, warranties or other claims;

                    (g)  the  capital   assets   acquired   with  such   Capital
               Expenditure  do not,  in any  way  violate  or  fail to meet  any
               warranty,  representation  or  covenant  contained  in  the  Loan
               Documents relating directly or indirectly to such assets;

                    (h) the  Lender  has  determined  in its sole  and  absolute
               discretion  that the capital  assets  acquired  with such Capital
               Expenditure are not unacceptable  due to age, type,  condition or
               quality; and

                    (i)  the  Capital  Expenditure  is not  made in  payment  of
               obligations  arising  under any lease  with  respect to which the
               lessee is required  concurrently  to recognize the acquisition of
               an assent and the  incurrence of a liability in  accordance  with
               GAAP.

          SECTION 2.2 REVISIONS TO REVOLVING  LINE OF CREDIT.  Section 2.1(a) of
     the Credit Agreement is hereby amended and restated in its entirety to read
     as follows:

                                       4
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               "2.1(a) REVOLVING CREDIT. A revolving loan (the "REVOLVING LOAN")
          to the  Borrower  available as advances  ("ADVANCES")  at any time and
          from time to time  from the  Closing  Date to  October  31,  2003 (the
          "REVOLVING  MATURITY  DATE"),  during  which  period the  Borrower may
          borrow,  repay, and reborrow in accordance with the provisions hereof,
          provided, that the unpaid principal amount of revolving Advances shall
          not exceed the lesser of (i) the Revolving Commitment Amount, and (ii)
          the Borrowing Base."

          SECTION  2.3 NEW  CAPITAL  EXPENDITURE  LINE OF CREDIT.  A new Section
     2.1(f) is hereby added to the Credit Agreement to read as follows:

               "2.1(f)  CAPITAL  EXPENDITURE  LOANS.  One or more loans (each, a
          "CAPITAL EXPENDITURE LOAN" and collectively,  the "CAPITAL EXPENDITURE
          LOANS") to the  Borrower  during  the  period  from and after the date
          hereof until the earlier of the  Revolving  Maturity  Date or December
          31,  2001 (the  "CAPITAL  EXPENDITURE  LOAN  AVAILABILITY  TERMINATION
          DATE", in such amounts and at such times as the Borrower may from time
          to time  request,  up to but not in excess of (i) with respect to each
          Capital  Expenditure  Loan, an amount equal to the  Qualified  Capital
          Expenditures to be paid with the proceeds of such Capital  Expenditure
          Loan,  and (ii)  with  respect  to  Capital  Expenditure  Loans in the
          aggregate,  an amount equal to $500,000 (the "CAPITAL EXPENDITURE LOAN
          AMOUNT").  The proceeds of each Capital Expenditure Loan shall be used
          by the Borrower  solely to pay Qualified  Capital  Expenditures.  Each
          request for a Capital Expenditure Loan shall be in a minimum amount of
          $100,000."

          SECTION 2.4 PROCEDURE FOR CAPITAL  EXPENDITURE  LOANS.  Section 2.2 of
     the Credit Agreement is hereby amended by deleting in its entirety the last
     sentence of said Section and replacing it with the following:

               "Notice  of  Borrower's  intention  to  request  a Term Loan or a
               Capital Expenditure Loan shall be subject to the same time limits
               and other requirements set forth in this Section 2.2."

          SECTION 2.5 CAPITAL  EXPENDITURE LOAN NOTE.  Section 2.3 of the Credit
     Agreement is hereby  amended by deleting in its entirety the last  sentence
     of said Section and replacing it with the following:

               "The Capital  Expenditure Loan shall be evidenced by a promissory
               note of the  Borrower  to the  Lender in an  amount  equal to the
               Capital  Expenditure Loan Amount, such promissory note to be in a
               form  acceptable  to the Lender (the  "CAPITAL  EXPENDITURE  LOAN
               NOTE").  The Lender  shall  enter in its  ledgers and records the
               payments  made on the Revolving  Note,  Term Note A, Term Note B,
               Term Note C, Term Note D and the Capital  Expenditure  Note,  and
               the amount of each Advance made and the  payments  made  thereon,
               and the  Lender  is  authorized  by the  Borrower  to  enter on a
               schedule  attached  to the  Notes a record of such  Advances  and
               payments."

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          SECTION 2.6 INTEREST ON CAPITAL  EXPENDITURE LOAN NOTE. Section 2.4 of
     the Credit Agreement is hereby amended by adding the following new sentence
     immediately before the last sentence of said Section:

               "Interest  shall  accrue and be payable on the unpaid  balance of
               the Capital  Expenditure  Loan Note at a floating  rate per annum
               equal to the Reference Rate plus 1%; PROVIDED, HOWEVER, that upon
               the happening of any Event of Default, then, at the option of the
               Lender,  the unpaid balance of the Capital  Expenditure Loan Note
               shall thereafter bear interest at a floating rate per annum equal
               to the Reference Rate plus 3%."

          SECTION 2.7 REPAYMENT OF CAPITAL EXPENDITURE LOAN NOTE. Section 2.6 of
     the Credit  Agreement is hereby  amended by adding thereto a new subsection
     2.6(f) to read as follows:

               "2.6(f) REPAYMENT OF CAPITAL EXPENDITURE LOAN NOTE.  Principal of
          the  Capital   Expenditure  Loans  shall  mature  and  be  payable  in
          consecutive  equal monthly  installments  due on the first day of each
          month  in  an  amount  sufficient  to  fully  amortize  the  aggregate
          principal balance of the Capital  Expenditure Loans outstanding on the
          Capital Expenditure Loan Availability Termination Date by the last day
          of the  twenty-fourth  (24th) month following such date. Such payments
          shall  commence on the first day of the first month to occur after the
          Capital  Expenditure  Loan  Availability  Termination  Date and  shall
          continue on the first day of each month thereafter until the Revolving
          Maturity  Date,  at which time a final  balloon  payment  equal to the
          outstanding   principal  balance  of  the  Capital  Expenditure  Loans
          outstanding on such date shall be due and payable.  Borrower may, upon
          three Business Days' notice to the Lender, prepay the principal of the
          Capital  Expenditure  Loans in whole or in part without  premium.  Any
          partial prepayment of principal of the Capital Expenditure Loans shall
          be in a minimum amount of the lesser of (A) the outstanding  principal
          balance of the Capital Expenditure Loans or (B) $25,000 or an integral
          multiple thereof,  and shall be applied to the unpaid  installments of
          the  Capital   Expenditure   Loans  in  the  inverse  order  of  their
          maturities.  Any principal of the Capital  Expenditure  Loans which is
          repaid may not be reborrowed.  Any regularly  scheduled payment due in
          respect of the Capital Expenditure Loans may be made with the proceeds
          of an Advance only if,  immediately  before and after giving effect to
          such  payment,  no Default or Event of  Default  then  exists or would
          result therefrom.  No portion of the Capital  Expenditure Loans may be
          prepaid with the proceeds of any Advance."

          SECTION  2.8  AMENDMENT  OF CAPITAL  EXPENDITURES  NEGATIVE  COVENANT.
     Section 6.4 of the Credit  Agreement is hereby  amended and restated in its
     entirety to read as follows:

               "SECTION 6.4 CAPITAL  EXPENDITURES.  The Borrowers  will not make
          Capital Expenditures,  on a consolidated basis, in an aggregate amount
          exceeding (a)  $1,750,000 in the fiscal year ended  December 31, 2001,
          and (b) $335,000 in any fiscal year thereafter."

          SECTION 2.9  AMENDMENT  OF TANGIBLE  CAPITAL BASE  NEGATIVE  COVENANT.
     Section 6.9 of the Credit  Agreement is hereby  amended and restated in its
     entirety to read as follows:

                                       6
<PAGE>
               "SECTION 6.9 TANGIBLE  CAPITAL BASE. The Borrower will not permit
          its  Tangible  Capital  Base  (the  excess  of its  assets,  excluding
          intangible  assets,  plus subordinated  debt (which includes,  without
          limitation,   debt   subordinated   pursuant   to  the   Subordination
          Agreements), over its liabilities, on a consolidated basis) to be less
          than the amount set forth below  opposite the  applicable  measurement
          date set forth below:

            Applicable                              Minimum Tangible
          Measurement Date                            Capital Base
          ----------------                            ------------

          December 31, 2000                            $4,000,000

          December 31, 2001                            $4,500,000

          December 31, 2002 and each                   Required Tangible Capital
          December 31 thereafter                       Base Amount

          As used in this  Section  6.9,  the  "Required  Tangible  Capital Base
          Amount" for any given  measurement  date is an amount equal to the sum
          of the minimum  Tangible  Capital Base required as of the  immediately
          preceding   measurement   date,   plus  fifty  percent  (50%)  of  the
          consolidated  Annual Net Profit  realized by the  Borrower  since such
          immediately  preceding measurement date (with any net loss counting as
          zero in such calculation)."

          SECTION  2.10  AMENDMENT  OF  FIXED  CHARGE  COVERAGE  RATIO  NEGATIVE
     COVENANT.  Section  6.11 of the  Credit  Agreement  is hereby  amended  and
     restated in its entirety to read as follows:

               "SECTION 6.11 FIXED CHARGE COVERAGE RATIO.

                    (i) As of the last day of each period stated below, Borrower
               will not permit the Fixed Charge  Coverage  Ratio for such period
               to be less than the ratio stated below for such period:

                               PERIOD                              MINIMUM RATIO
                               ------                              -------------

               From 1/1/01 through and including 3/31/01           0.90 to 1.00
               From 1/1/01 through and including 6/30/01           1.00 to 1.00
               From 1/1/01 through and including 9/30/01           1.00 to 1.00
               From 1/1/01 through and including 12/31/01          1.00 to 1.00

                    (ii)  Beginning  with the fiscal  quarter  ending  March 31,
               2002, as of the last day of any fiscal quarter, Borrower will not
               permit the Fixed Charge  Coverage Ratio for the four  consecutive
               fiscal  quarters  ending  on such  date to be less  than  1.10 to
               1.00."

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<PAGE>
          SECTION  2.11  AMENDMENT  OF  DEBT  SERVICE  COVERAGE  RATIO  NEGATIVE
     COVENANT.  Section  6.12 of the  Credit  Agreement  is hereby  amended  and
     restated in its entirety to read as follows:

               "SECTION 6.12 DEBT SERVICE COVERAGE RATIO.

                    (i) As of the last day of each period stated below, Borrower
               will not permit the Debt Service  Coverage  Ratio for such period
               to be less than the ratio stated below for such period:

                               PERIOD                              MINIMUM RATIO
                               ------                              -------------

               From 1/1/01 through and including 3/31/01           0.90 to 1.00
               From 1/1/01 through and including 6/30/01           1.00 to 1.00
               From 1/1/01 through and including 9/30/01           1.00 to 1.00
               From 1/1/01 through and including 12/31/01          1.00 to 1.00

                    (ii)  Beginning  with the fiscal  quarter  ending  March 31,
               2002, as of the last day of any fiscal quarter, Borrower will not
               permit the Debt Service  Coverage Ratio for the four  consecutive
               fiscal  quarters  ending  on such  date to be less  than  1.10 to
               1.00."

     3. CONTINUING  OBLIGATION;  REPRESENTATIONS.  To induce the Lender to enter
into this  Amendment,  the  Borrowers  represent  and  warrant  to the Lender as
follows:

          SECTION 3.1 CONTINUING  OBLIGATION.  Borrowers  acknowledge  and agree
     that they remain  obligated for the payment of  indebtedness  evidenced and
     secured by the Credit Agreement and the other Loan Documents,  and agree to
     be bound by and to perform all of the covenants and agreements set forth in
     said  documents  and  instruments,  as the  same  may be  amended  by  this
     Amendment.

          SECTION 3.2 REAFFIRMATION OF REPRESENTATIONS. Borrowers hereby restate
     and reaffirm all representations, warranties and covenants contained in the
     Credit  Agreement and the Loan  Documents,  the same as if such  covenants,
     representations and warranties were made by Borrowers on the date hereof.

     4. MERGER  DOCUMENTS.  Upon filing of the documents listed in Sections 1(e)
and 1(g),  and/or  the  documents  listed in  Sections  1(j) and 1(l),  with the
Arizona  Secretary of State and the Delaware  Secretary of State,  respectively,
Borrower agrees to promptly inform Lender of such filing,  and Borrower  further
agrees to  deliver to the  Lender,  within  ten (10) days of such  filing,  true
copies of such  filed  documents  bearing  proof of filing  with the  respective
Secretaries of State.

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     5.  TRADEMARK  REGISTRATION.  Borrower  covenants  and agrees to deliver to
Lender  (a) as soon as  possible  and in any event not later  than ten (10) days
after Borrower's  receipt of the same from the U.S. Patent and Trademark Office,
the  Certificate  of  Registration  relating  to  its  application  for  federal
registration  of its "Pizzarias"  trademark,  and (b) upon Lender's  request,  a
Notice of Grant of Security Interest in Trademarks signed by PBI and relating to
such trademark, in form and substance acceptable to Lender.

     6. FEES AND EXPENSES.  The  Borrowers  agree to pay or reimburse the Lender
for  all  reasonable  out-of-pocket  expenses  (including,  without  limitation,
reasonable  attorneys' fees, and  out-of-pocket  disbursements of Lender's legal
counsel)  incurred by the Lender in connection  with this  Amendment and related
documents.

     7. EXECUTION IN COUNTERPARTS. This Amendment may be executed in two or more
counterparts  each  of  which  shall  be an  original  and  all of  which  shall
constitute but one and the same instrument.

     8.  REFERENCES.  All references to the Credit  Agreement in any document or
instrument are hereby amended and shall refer to the Credit Agreement as amended
by this  Amendment.  Except as  amended  hereby,  the  provisions  of the Credit
Agreement shall remain unmodified and in full force and effect.

                  [Remainder of page intentionally left blank;
                             Signature pages follow]

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<PAGE>
     IN WITNESS WHEREOF,  the parties hereto have caused this Third Amendment to
Credit Agreement be executed as of the day and year first above written.

BORROWERS:                         POORE BROTHERS, INC.,
                                   a Delaware corporation

                                   By_________________________________
                                    Its_______________________________

                                   POORE BROTHERS ARIZONA, INC.,
                                   an Arizona corporation

                                   By_________________________________
                                    Its_______________________________

                                   POORE BROTHERS DISTRIBUTING, INC.,
                                   an Arizona corporation

                                   By_________________________________
                                    Its_______________________________

                                   TEJAS PB DISTRIBUTING, INC.,
                                   an Arizona corporation

                                   By_________________________________
                                    Its_______________________________

                                   POORE BROTHERS - BLUFFTON, LLC,
                                   a Delaware limited liability company
                                   (formerly known as Wabash Foods, LLC)

                                   By_________________________________
                                    Its_______________________________

                                   BOULDER NATURAL FOODS, INC.,
                                   an Arizona corporation

                                   By_________________________________
                                    Its_______________________________

                                       10
<PAGE>
                                   BN FOODS, INC.,
                                   a Colorado corporation

                                   By_________________________________
                                    Its_______________________________

LENDER:                            U.S. BANK NATIONAL ASSOCIATION,
                                   a national banking association

                                   By_________________________________
                                    Its_______________________________

                                       11
<PAGE>
                ACKNOWLEDGMENT AND CONSENT OF SUBORDINATED LENDER

     WELLS  FARGO  SMALL  BUSINESS  INVESTMENT   COMPANY,   INC.,  a  California
corporation ("Wells Fargo") hereby acknowledges and agrees that (a) the attached
Revolving Note and the increase in the Revolving Commitment Amount to $5,000,000
under the Credit  Agreement (and any amounts  borrowed by Borrowers  pursuant to
such increase),  (b) the attached Capital  Expenditure Loan Note and any amounts
advanced against such Note, and (c) any other loans, advances or other financial
accommodations  now or  hereafter  made by the  Lender to any one or more of the
Borrowers (collectively, the "Additional Credit") shall constitute "Senior Debt"
as that  term is  defined  in that  certain  Subordination  Agreement  (Debt and
Security)  dated  October 3, 1999 by and between  Wells  Fargo and U.S.  BANCORP
REPUBLIC  COMMERCIAL  FINANCE,  INC, a  Minnesota  corporation,  predecessor  in
interest to U.S. BANK NATIONAL ASSOCIATION,  a national banking association (the
"Subordination   Agreement").   Accordingly,   Wells  Fargo   hereby   expressly
acknowledges  and agrees that any obligation now or hereafter owed by any one or
more of the  Borrowers  to  Wells  Fargo  is and  shall  be  subordinate  to the
Additional  Credit and the other  Senior Debt in  accordance  with the terms and
conditions set forth in the Subordination Agreement.

                                   WELLS FARGO SMALL BUSINESS
                                   INVESTMENT COMPANY, INC.

                                   By_________________________________
                                    Its_______________________________

                                       12
<PAGE>
                                 REVOLVING NOTE

$5,000,000                                                  ______________, 2001

     FOR VALUE RECEIVED, POORE BROTHERS, INC., a corporation organized under the
laws of the State of Delaware ("PBI"),  POORE BROTHERS ARIZONA, INC., an Arizona
corporation ("PBAI"), POORE BROTHERS DISTRIBUTING,  INC., an Arizona corporation
("PBDI"),  TEJAS PB  DISTRIBUTING,  INC., an Arizona  corporation  ("Tejas") and
POORE BROTHERS - BLUFFTON, LLC (formerly known as Wabash Foods, LLC), a Delaware
limited  liability  company  ("PBB"),  (PBI,  PBAI,  PBDI,  Tejas and PBB each a
Borrower and collectively the "Borrower" or the "Borrowers"), hereby jointly and
severally  promise to pay to the order of U.S.  BANK NATIONAL  ASSOCIATION  (the
"Lender") at its main office in Minneapolis,  Minnesota,  in lawful money of the
United  States  of  America  in  immediately  available  funds on the  Revolving
Maturity  Date (as such term and each  other  capitalized  term used  herein are
defined in the Credit Agreement hereinafter referred to) the principal amount of
FIVE  MILLION AND NO/100  DOLLARS  ($5,000,000.00)  or, if less,  the  aggregate
unpaid principal  amount of all Revolving  Advances made by the Lender under the
Credit  Agreement,  and to pay  interest  (computed  on the basis of actual days
elapsed  and a year of 360 days) in like  funds on the unpaid  principal  amount
hereof  from  time to time  outstanding  at the rates and times set forth in the
Credit Agreement.

     This note is the Revolving Note referred to in the Credit  Agreement  dated
as of October 3, 1999,  as amended by that  certain  First  Amendment  to Credit
Agreement  dated as of June 30, 2000, as further  amended by that certain Second
Amendment to Credit  Agreement dated as of March 1, 2001, and as further amended
by that certain Third  Amendment to Credit  Agreement  dated as of  ___________,
2001  (as the same may be  hereafter  from  time to time  amended,  restated  or
modified,  the "Credit  Agreement") between the undersigned and the Lender. This
note is secured,  it is subject to certain permissive and mandatory  prepayments
and its  maturity  is  subject  to  acceleration,  in each  case  upon the terms
provided in said Credit Agreement.

     In the event of default hereunder,  the undersigned agrees to pay all costs
and  expenses  of  collection,   including   reasonable   attorneys'  fees.  The
undersigned waives demand, presentment, notice of nonpayment, protest, notice of
protest and notice of dishonor.

     This note is issued as  replacement  for,  and not payment of, that certain
Revolving  Note dated as of March 1, 2001 made  payable by the  Borrowers to the
order of Lender in the  original  principal  amount of Four  Million  and No/100
Dollars ($4,000,000.00).

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       13
<PAGE>
     THE  VALIDITY,  CONSTRUCTION  AND  ENFORCEABILITY  OF THIS  NOTE  SHALL  BE
GOVERNED BY THE INTERNAL LAWS OF THE STATE OF MINNESOTA WITHOUT GIVING EFFECT TO
THE CONFLICT OF LAWS PRINCIPLES THEREOF.

BORROWERS:                         POORE BROTHERS, INC.,
                                   a Delaware corporation

                                   By_________________________________
                                    Its_______________________________

                                   POORE BROTHERS ARIZONA, INC.,
                                   an Arizona corporation

                                   By_________________________________
                                    Its_______________________________

                                   POORE BROTHERS DISTRIBUTING, INC.,
                                   an Arizona corporation

                                   By_________________________________
                                    Its_______________________________

                                   TEJAS PB DISTRIBUTING, INC.,
                                   an Arizona corporation

                                   By_________________________________
                                    Its_______________________________

                                   POORE BROTHERS - BLUFFTON, LLC,
                                   a Delaware limited liability company

                                   By_________________________________
                                    Its_______________________________

                                   BOULDER NATURAL FOODS, INC.,
                                   an Arizona corporation

                                   By_________________________________
                                    Its_______________________________

                                   BN FOODS, INC.,
                                   a Colorado corporation

                                   By_________________________________
                                    Its_______________________________

                                       14
<PAGE>
                          CAPITAL EXPENDITURE LOAN NOTE

$500,000                                                   _______________, 2001

     FOR VALUE RECEIVED, POORE BROTHERS, INC., a corporation organized under the
laws of the State of Delaware ("PBI"),  POORE BROTHERS ARIZONA, INC., an Arizona
corporation ("PBAI"), POORE BROTHERS DISTRIBUTING,  INC., an Arizona corporation
("PBDI"),  TEJAS PB  DISTRIBUTING,  INC., an Arizona  corporation  ("Tejas") and
POORE BROTHERS - BLUFFTON, LLC (formerly known as Wabash Foods, LLC), a Delaware
limited  liability  company  ("PBB"),  (PBI,  PBAI,  PBDI,  Tejas and PBB each a
Borrower and collectively the "Borrower" or the "Borrowers"), hereby jointly and
severally  promise to pay to the order of U.S.  BANK NATIONAL  ASSOCIATION  (the
"Lender") at its main office in Minneapolis,  Minnesota,  in lawful money of the
United  States of America in  immediately  available  funds the principal sum of
Five  Hundred  Thousand  and  No/100  Dollars  ($500,000.00)  or,  if less,  the
aggregate unpaid principal amount of all Capital  Expenditure  Loans made by the
Lender to the  Borrower  pursuant  to the Credit  Agreement  referred  to below,
together with interest on the principal  amount  hereunder  from the date hereof
until this Note is fully paid at the rates from time to time in effect under the
Credit Agreement.

     The principal hereof and interest accruing thereon shall be due and payable
as provided in the Credit Agreement. This Note may be prepaid only in accordance
with the Credit Agreement.

     This Note is the "Capital  Expenditure Loan Note" referred to in the Credit
Agreement  dated as of  October  3,  1999,  as  amended  by that  certain  First
Amendment to Credit  Agreement  dated as of June 30, 2000, as further amended by
that certain Second Amendment to Credit Agreement dated as of March 1, 2001, and
as further amended by that certain Third Amendment to Credit  Agreement dated as
of  ___________,  2001 (as the same may be hereafter  from time to time amended,
restated or modified,  the "Credit  Agreement")  between the undersigned and the
Lender.  This note is secured, it is subject to certain permissive and mandatory
prepayments and its maturity is subject to  acceleration,  in each case upon the
terms provided in said Credit Agreement.

     In the event of default hereunder,  the undersigned agrees to pay all costs
and  expenses  of  collection,   including   reasonable   attorneys'  fees.  The
undersigned waives demand, presentment, notice of nonpayment, protest, notice of
protest and notice of dishonor.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       15
<PAGE>
     THE  VALIDITY,  CONSTRUCTION  AND  ENFORCEABILITY  OF THIS  NOTE  SHALL  BE
GOVERNED BY THE INTERNAL LAWS OF THE STATE OF MINNESOTA WITHOUT GIVING EFFECT TO
THE CONFLICT OF LAWS PRINCIPLES THEREOF.

BORROWERS:                         POORE BROTHERS, INC.,
                                   a Delaware corporation

                                   By_________________________________
                                    Its_______________________________

                                   POORE BROTHERS ARIZONA, INC.,
                                   an Arizona corporation

                                   By_________________________________
                                    Its_______________________________

                                   POORE BROTHERS DISTRIBUTING, INC.,
                                   an Arizona corporation

                                   By_________________________________
                                    Its_______________________________

                                   TEJAS PB DISTRIBUTING, INC.,
                                   an Arizona corporation

                                   By_________________________________
                                    Its_______________________________

                                   POORE BROTHERS - BLUFFTON, LLC,
                                   a Delaware limited liability company

                                   By_________________________________
                                    Its_______________________________

                                   BOULDER NATURAL FOODS, INC.,
                                   an Arizona corporation

                                   By_________________________________
                                    Its_______________________________

                                   BN FOODS, INC.,
                                   a Colorado corporation

                                   By_________________________________
                                    Its_______________________________

                                       16

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