Document:

COMMERCIAL VARIABLE RATE REVOLVING OR DRAW NOTE

                                       BORROWER
                                       American  Consumers,  Inc.
                                       DBAShop  Rite  Supermarket

                                       ADDRESS
Northwest  Georgia  Bank               418  Alamar  Street
Battlefield  Pkwy                      P.O.  Box  2328
3610  Battlefield  Pkwy                Fort  Oglethorpe,  GA  30742
Fort  Oglethorpe,  GA  30742           Telephone  No.     Identification  No.
(706)  858-8430  "LENDER"              (706)  861-3347

<TABLE>
<CAPTION>
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OFFICER         INTEREST RATE  PRINCIPAL AMOUNT/      FUNDING      MATURITY  CUSTOMER NUMBER       LOAN
IDENTIFICATION                    CREDIT LIMIT     AGREEMENT DATE    DATE                         NUMBER
<S>             <C>            <C>                 <C>             <C>       <C>              <C>

KF:39             VARIABLE        $500,000.00         05/30/04     05/30/05                   R-xx-xxxxxx-xx
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</TABLE>

TO     LT/15     COL/33/17     CL/B     CRC/6A     PURP/73     CT/307.00

PROMISE TO PAY: For value received, Borrower promises to pay the order of Lender
the principal amount of FIVE HUNDRED THOUSAND AND NO/ 100 DOLLARS ($500,000.00),
or, if less, the aggregate unpaid principal amount of all loans or advances made
by  the  Lender  to  the  Borrower  under this Note, plus interest on the unpaid
principal  balance  at  the  rate  and  in the manner described below, until all
amounts  owing under this Note are paid in full.  All amounts received by Lender
shall  be applied first to accrued unpaid interest, then to unpaid principal and
then  to  unpaid  late  charges  and  expenses, accrued unpaid interest, then to
unpaid  principal,  or  in  any other order as determined by Lender, in Lender's
sole  discretion,  as  permitted  by  law.

REVOLVING  OR  DRAW  FEATURE: [X] This Note possesses a revolving feature.  Upon
satisfaction  of  the  conditions  set  forth  in  this  Note, Borrower shall be
entitled  to borrow up to the full principal amount of the Note and to repay and
reborrow  from  time  to  time  during  the  term  of  this Note.  [ ] This Note
possesses a draw feature.  Upon satisfaction of the conditions set forth in this
Note, Borrower shall be entitled to draw one or more times under this Note.  Any
repayment  may  not be reborrowed.  The aggregate amount of such draws shall not
exceed  the  full  principal  amount  of  this  Note.
Information  with  regard  to  any  loans  or  advances under this Note shall be
recorded and maintained by Lender in its internal records and such records shall
be  conclusive  of  the principal and interest owned by Borrower under this Note
unless  there  is  a  material  error  in such regards.  The Lender's failure to
record  the  date and amount of any loan or advance shall not limit or otherwise
affect  the  obligations  of the Borrower under this Note to repay the principal
amount  of  the  loans  or advances together with all interest accruing thereon.
Borrower  shall  be  entitled  to inspect or obtain a copy of the records during
Lender's  business  hours.

CONDITIONS  FOR  ADVANCES:  If no Event of Default has occurred under this Note,
Borrower  shall  be  entitled  to  borrow monies under this Note (subject to the
limitations  described  above)  under  the  following  conditions:
     UPON  AUTHORIZATION  OF  LENDER.

INTEREST  RATE: This Note has a variable rate feature. The interest rate on this
Note  may  change  from time to time if the Index Rate identified below changes.
Interest  shall  be  computed on the basis of THE ACTUAL NUMBER OF DAYS OVER 360
DAYS  per  year.  Interest  on  this  Note  shall be calculated and payable at a
variable  rate  equal  to  0.500%  per  annum  OVER  the Index Rate. The initial
interest  rate  on  this  Note  shall  be  6.000  % per annum. Any change in the
interest  rate  resulting  from a change in the Index Rate will be effective on:
     FIRST  DAY  OF  EACH  MONTH.

RATE  LIMITATIONS:  Subject to applicable law, the minimum interest rate on this
Note  shall  be  6.000 % per annum. The maximum interest rate on this Note shall
not  exceed 21.000% per annum. The maximum rate increase at any one time will be
N/A  %.  The  maximum  rate  decrease  at  any  one  time  will  be  N/A  %.

<PAGE>
INDEX  RATE:  The  Index  Rate  for  this  Note  shall  be:
     WALL STREET PRIME RATE AS PUBLISHED IN THE WALL STREET JOURNAL.

If  the  Index  Rate is redefined or becomes unavailable, then Lender may select
another  index  rate  which  is  substantially  similar.

DEFAULT  RATE:  If there is an Event of Default under this Note, the Lender may,
in  its  discretion,  increase  the interest rate on this Note to: 16.00% or the
maximum  interest  rate Lender is permitted to charge by law, whichever is less.

PAYMENT SCHEDULE: Borrower shall pay the principal and interest according to the
following  schedule:
     INTEREST  ONLY  PAYMENTS  BEGINNING  AUGUST 30, 2004 AND CONTINUING AT
     QUARTERLY  TIME  INTERVALS  THEREAFTER.  A FINAL PAYMENT OF THE UNPAID
     PRINCIPAL  BALANCE PLUS ACCRUED INTEREST IS DUE AND PAYABLE ON MAY 30,
     2005.

PREPAYMENT:  This  Note  may  be  prepaid  in  part  or in full on or before its
maturity date [ ] with [X] without penalty.  If this Note contains more than one
installment,  any  partial prepayment will not affect the due date or the amount
of  any  subsequent  installment,  unless agreed to, in writing, by Borrower and
Lender.  If  this  Note  is  prepaid  in  full  there  will  be:
[ ] A minimum finance charge of $________________. [ ] A prepayment penalty of:

LATE  CHARGE:  If  a payment is received more than 9 days late, Borrower will be
charged  a  late  charge  of:
[ ]  __________%  of  the  unpaid portion of the payment;  [ ] $__________;  [X]
5.00  % of the unpaid late payment or $60.00, whichever is [ ] greater [X] less,
as  permitted  by  law.

COLLATERAL:  To secure the payment and performance of obligations incurred under
this  Note,  Borrower  grants  Lender  a  security interest in all of Borrower's
right,  title, and interest in all monies, instruments, savings, checking, share
and  other  accounts of Borrower (excluding IRA, Keogh, trust accounts and other
accounts  subject to tax penalties if so assigned) that are now or in the future
in Lender's custody or control.  [X] If checked, the obligations under this Note
are  also  secured  by  the  collateral  described in any security instrument(s)
executed in connection with this Note, and any collateral described in any other
security  instrument(s)  securing  this  Note  or all of Borrower's obligations.

1  NWGB  CD#XXXXX.  ALL  ACCTS. REC., INVENTORY, EQUIP., FURNITURE & FIXTURES AS
EVIDENT  ON  UCC-1  DATED  3/12/01  IN  CATOOSA  CO.  FILE  NO.  023-2001-0363

CHECK  PROCESSING  FEE:  If  a  check  for payment is returned to Lender for any
reason (for example, because there are insufficient funds in Borrower's checking
account),  Lender  will  assess  a  check processing fee of $ N/A which shall be
added  to  the  principal  balance.

RENEWAL: [ ] If checked, this Note is a renewal, but not a satisfaction, of
Loan Number _____________

--------------------------------------------------------------------------------
THE PERSONS SIGNING BELOW ACKNOWLEDGE THAT THEY HAVE READ, UNDERSTAND, AND AGREE
TO  THE  PROVISIONS  OF  THIS  NOTE,  INCLUDING  THE TERMS AND CONDITIONS ON THE
REVERSE  SIDE,  AND  FURTHER  ACKNOWLEDGE RECEIPT OF AN EXACT COPY OF THIS NOTE.
Dated:  May 30, 2004

BORROWER:   AMERICAN CONSUMERS, INC.      BORROWER:   AMERICAN CONSUMERS, INC.
            DBA SHOP RITE SUPERMARKET                 DBA SHOP RITE SUPERMARKET

     /s/ Michael A. Richardson               /s/ Paul R. Cook
By:______________________________       By:______________________________
     Michael A. Richardson                   Paul R. Cook
     PRESIDENT                               EXECUTIVE VICE PRESIDENT

<PAGE>
                              TERMS AND CONDITIONS

1.   EVENT  OF  DEFAULT.  An Event of Default shall occur under this Note in the
     event  that  Borrower,  any  guarantor  or  any  other third party pledging
     collateral  to  secure  this  Note:
(a)  fails  to make any payment on this Note or any other indebtedness to Lender
     when  due;
(b)  fails  to  perform  any obligation, or breaches any warranty or covenant to
     Lender  contained  in  this  Note,  any  security  instrument, or any other
     present  or  future  written  agreement  regarding  this  or  any  other
     indebtedness  of  Borrower  to  Lender;
(c)  provides  or  causes any false or misleading signature or representation to
     be  provided  to  Lender;
(d)  sells,  conveys,  or  transfers rights in any collateral securing this Note
     without  the written approval of Lender; or destroys, loses or damages such
     collateral in any material respect; or subjects such collateral to seizure,
     confiscation  or  condemnation.
(e)  has  a  garnishment,  judgement,  tax  levy,  attachment or lien entered or
     served  against  Borrower,  any  guarantor,  or  any  third  party pledging
     collateral  to  secure  this  Note  or  any  of  their  property;
(f)  dies,  becomes  legally  incompetent, is dissolved or terminated, ceases to
     operate  its  business,  becomes  insolvent,  makes  an  assignment for the
     benefit of creditors, fails to pay debts as they become due, or becomes the
     subject  of any bankruptcy, insolvency or debtor rehabilitation proceeding;
(g)  fails  to  provide  Lender  evidence  of  satisfactory financial condition;
(h)  has  a  majority  of  its  outstanding voting securities sold, conveyed, or
     transferred  to  any  person or entity other than any person or entity that
     has  the  majority  ownership  as  of  the  date  of  the execution of this
     agreement;  or
(i)  if  Lender  deems  itself insecure in good faith with respect to any of the
     obligations  or  indebtedness.

2.   RIGHTS  OF  LENDER  ON  EVENT  OF DEFAULT.  If there is an Event of Default
     under  this  Note,  Lender  will be entitled to exercise one or more of the
     following  remedies  without  notice or demand (except as required by law):
(a)  to  declare  the principal amount plus accrued interest under this Note and
     all  other  present  and future obligations of Borrower immediately due and
     payable  in full; such acceleration shall be automatic and immediate if the
     Event  of  Default  is  a  filing  under  the  Bankruptcy  Code;
(b)  to  collect  the  outstanding  obligations  of  Borrower  with  or  without
     resorting  to  judicial  process;
(c)  to  cease  making  advances  under this Note or any other agreement between
     Borrower  and  Lender;
(d)  to  take  possession  of  any  collateral  in  any manner permitted by law;
(e)  to  require Borrower to deliver and make available to Lender any collateral
     at  a  place  reasonably  convenient  to  Borrower  and  Lender;
(f)  to  sell,  lease  or  otherwise  dispose  of any collateral and collect any
     deficiency  balance  with  or  without  resorting  to  legal  process;
(g)  to  set-off  Borrower's  obligations  against  any  amounts due to Borrower
     including,  but  not  limited to, monies, instruments, and deposit accounts
     maintained  with  Lender;  and
(h)  to  exercise  all  other rights available to Lender under any other written
     agreement  or  applicable  law.

Lender's rights are cumulative and may be exercised together, separately, and in
any  order.  Lender's  remedies  under  this  paragraph are in addition to those
available  under  any  other  written  agreement  or  applicable  law.

3.   DEMAND  FEATURE. [ ]  If  checked,  this  Note  contains  a demand feature.
     Lender's right to demand payment, at any time, and from time to time, shall
     be in Lender's sole and absolute discretion, whether or not any default has
     occurred.

4.   FINANCIAL  INFORMATION.  Borrower  will  at  all times keep proper books of
     record and account in which full, true and correct entries shall be made in
     accordance  with  generally accepted accounting principles and will deliver
     to  Lender,  within  ninety  (90) days after the end of each fiscal year of
     Borrower, a copy of the annual financial statements of Borrower relating to
     such  fiscal  year,  such  statements  to  include (i) the balance sheet of
     Borrower  as  at  the  end  of such fiscal year and (ii) the related income
     statement,  statement  of retained earnings and statement of changes in the
     financial  position  of  Borrower  for  such  fiscal year, prepared by such
     certified  public  accountants as may be reasonably satisfactory to Lender.
     Borrower  also  agrees  to deliver to Lender within fifteen (15) days after
     filing same, a copy of Borrower's income tax returns and also, from time to
     time,  such  other financial information with respect to Borrower as Lender
     may  request.

<PAGE>
5.   MODIFICATION  AND  WAIVER.  The modification or waiver of any of Borrower's
     obligations  or  Lender's  rights  under  this  Note must be contained in a
     writing  signed by Lender. Lender may perform any of Borrower's obligations
     or  delay or fail to exercise any of its rights without causing a waiver of
     those obligations or rights. A waiver on one occasion will not constitute a
     waiver  on any other occasion. Borrower's obligations under this Note shall
     not  be  affected  if  Lender  amends,  compromises,  exchanges,  fails  to
     exercise,  impairs  or  releases  any  of  the obligations belonging to any
     Borrower or guarantor or any of its rights against any Borrower, guarantor,
     or  any  collateral  securing  any  of  Borrower's  obligations.

6.   SEVERABILITY.  If  any  provision  of  this  Note  violates  the  law or is
     unenforceable,  the  rest  of  the Note shall remain valid. Notwithstanding
     anything contained in this Note to the contrary, in no event shall interest
     accrue  under  this  Note, before or after maturity, at a rate in excess of
     the  highest  rate  permitted by applicable law, and if interest (including
     any charge or fee held to be interest by a court of competent jurisdiction)
     in excess thereof be paid, any excess shall constitute a payment of, and be
     applied  to, the principal balance hereof, and if the principal balance has
     been  fully  paid,  then  such excess interest shall be repaid to Borrower.

7.   ASSIGNMENT. Borrower agrees not to assign any of Borrower' rights, remedies
     or  obligations  described in the Note without the prior written consent of
     Lender,  which  consent  may  be withheld by Lender in its sole discretion.
     Borrower agrees that Lender is entitled to assign some or all of its rights
     and  remedies described in this Note without notice to or the prior consent
     of  Borrower.

8.   NOTICE.  Any  notice  or  other communication to be provided to Borrower or
     Lender  under  this  Note shall be in writing and mailed to the parities at
     the  addresses  described in this Note or such other address as the parties
     my  designate  in  writing  from  time  to  time.

9.   APPLICABLE  LAW.  Interest,  including  rates,  fees  and  charges  which
     compensate  Lender for the extension of credit to Borrower under this Note,
     or  which  compensate  Lender  for any Default or breach by Borrower of the
     terms and conditions of this Note, shall be governed by federal law and the
     laws  of  the state of GEORGIA. All other terms and conditions of this Note
     shall  be  governed  by  the  laws of the state of GEORGIA unless otherwise
     preempted  by  federal  law.  Unless  applicable  law  provides  otherwise,
     Borrower  consents  to  the  jurisdiction and venue of any court located in
     GEORGIA  selected  by  Lender, in its discretion, in the event of any legal
     proceeding  under  this  Note.

10.  COLLECTION  COSTS  AND  ATTORNEYS'  FEES.  To  the extent permitted by law,
     Borrower  agrees  to pay all costs of collection, including attorneys' fees
     of  15  percent  of the principal and interest owing on the indebtedness if
     the  indebtedness  is  collected  by  law  or  through  an attorney at law.

11.  MISCELLANEOUS.  This  Note  is  being  executed  primarily  for commercial,
     agricultural,  or  business  purposes.  Borrower  will  provide Lender with
     current  financial statements and other financial information upon request.
     Borrower  and  Lender agree that time is of the essence. Borrower agrees to
     make  all  payments  to  Lender  at any address designated by Lender and in
     lawful  United  States  currency. Borrower and any person who endorses this
     Note waives presentment, demand for payment, notice of dishonor and protest
     and  further  waives  any right to require Lender to proceed against anyone
     else  before  proceeding against Borrower or said person. All references to
     Borrower  in  this Note shall include all of the parties signing this Note,
     and  this  Note  shall be binding upon the heirs, personal representatives,
     successors  and  assigns  of Borrower and Lender. If there is more than one
     Borrower their obligations under this Note shall be joint and several. This
     Note  represents the complete and integrated understanding between Borrower
     and  Lender  regarding  the  terms  hereof.

12.  JURY TRIAL WAIVER. LENDER AND BORROWER HEREBY WAIVE ANY RIGHT TO A TRIAL BY
     JURY  IN  ANY  CIVIL ACTION ARISING OUT OF, OR BASED UPON, THIS NOTE OR THE
     COLLATERAL  SERCURING  THIS  NOTE.

13.  ADDITIONAL  TERMS:

*****THE MINIMUM INTEREST RATE FOR THIS NOTE SHALL BE 6.00%.*******

<PAGE>COMMERCIAL SECURITY AGREEMENT

Northwest  Georgia  Bank
Battlefield  Parkway
3610  Battlefield  Parkway
Fort  Oglethorpe,  GA  30742
(706)  858-8430   "LENDER"

     BORROWER                           OWNER
American  Consumers,  Inc.              American  Consumers,  Inc.
DBA  Shop  Rite  Supermarket            DBA  Shop  Rite  Supermarket

     ADDRESS                            ADDRESS
418  Alamar  Street                     418  Alamar  Street
P.O.  Box  2328                         P.O.  Box  2328
Fort  Oglethorpe,  GA  30742            Fort  Oglethorpe,  GA  30742
TELEPHONE  NO.    IDENTIFICATION  NO.   TELEPHONE  NO.     IDENTIFICATION NO.
(706)  861-3347                         (706)  861-3347

1.   SECURITY  INTEREST.  For  good  and valuable consideration, Owner grants to
Lender  identified  above  a  continuing  security  interest  in  the Collateral
described  below  to  secure  the  Obligations  described  in  this  Agreement.

2.   SECURED  OBLIGATIONS.  The  security  interest  granted  secures:  [ ]  the
payment  and performance of any and all liabilities, obligations, agreements and
undertakings  of  Borrower (or any one or more of them) and Owner (or any one or
more  of  them)  to  Lender,  in  any  amount, whether now existing or hereafter
arising  (including  those  owed  by Borrower or Owner to others and acquired by
Lender through purchase, assignment or otherwise), however created, evidenced or
arising,  whether  individually  or jointly with others, and whether absolute or
contingent,  direct  or  indirect,  as  maker,  endorser,  guarantor,  surety or
otherwise,  liquidated  or  unliquidated,  matured  or unmatured, whether or not
secured  by  other  collateral,  and  including,  without  limitation  (a)  all
obligations  to  perform  or  forebear  from  performing  any  acts, and (b) all
overdrafts  on deposits or accounts maintained by Borrower or Owner with Lender,
and (c) the liabilities, obligations, agreements and undertakings of Borrower or
Owner to Lender pursuant to any application or other agreement requesting Lender
to  issue  any letter of credit including, without limitation, the obligation of
Borrower  or Owner to reimburse Lender for all amounts funded by Lender pursuant
to  any  such  letter  of  credit,  and  (d)  all  costs and fees for filing and
recording  documentation, all costs incurred in the collection or enforcement of
this  Agreement,  including  attorneys'  fees  and legal expenses, including all
appeals,  whether  or  not  a  lawsuit  is  instituted  and  whether or not such
collection  or  enforcement  occurs before or after any bankruptcy proceeding is
filed  by  or  against  any  Borrower  or  Owner  (all of which are collectively
referred  to  as  the  "Obligations");  [X]  the  payment and performance of the
liabilities,  obligations, agreements, and undertakings of Borrower and Owner to
Lender  evidenced by this security agreement and the promissory note of Borrower
dated MAY 30, 2004 in the amount of $500,000.00 identified under loan number (or
account  number)  R-XXXXXXXXXX,  and  any  extensions,  renewals,  amendments,
substitutions,  or  replacements  thereof  (collectively  referred  to  as  the
"Obligations").

3.   COLLATERAL.  All  of  Owner's  right  title  and  interest in the following
described  property,  as  defined by the Uniform Commercial Code presently or as
hereafter amended or replaced, whether now or hereafter existing or now owned or
hereafter  acquired  by  Owner  and  wherever  located  shall  constitute  the
"Collateral":

     [X]  All  accounts including, but not limited to, any accounts described on
          Schedule  A attached hereto and incorporated herein by this reference;

     [ ]  All  chattel  paper  including,  but not limited to, any chattel paper
          described  on  Schedule  A  attached hereto and incorporated herein by
          this  reference;

     [ ]  All  deposit  accounts,  including,  but  not  limited to, any deposit
          accounts  described  on  Schedule  A  attached hereto and incorporated
          herein  by  this  reference;

     [ ]  All  documents  including, but not limited to, any documents described
          on  Schedule  A  attached  hereto  and  incorporated  herein  by  this
          reference;

     [X]  All  equipment, including, but not limited to, any equipment described
          on  Schedule  A  attached  hereto  and  incorporated  herein  by  this
          reference;

     [X]  All fixtures, including, but not limited to, any fixtures described on
          Schedule A and located or to be located on the real property described
          on  Schedule  B  attached  hereto  and  incorporated  herein  by  this
          reference;

     [ ]  All  general  intangibles  including,  but not limited to, any general
          intangibles  described  on Schedule A attached hereto and incorporated
          herein  by  this  reference;

     [ ]  All  instruments  including,  but  not  limited  to,  any  instruments
          described  on  Schedule  A  attached hereto and incorporated herein by
          this  reference;

     [X]  All  inventory  including, but not limited to, any inventory described
          on  Schedule  A  attached  hereto  and  incorporated  herein  by  this
          reference;

     [ ]  All  investment property including, but not limited to, any investment
          property  described  on  Schedule  A  attached hereto and incorporated
          herein  by  this  reference;

     [ ]  All  letter-of-credit  rights  including,  but  not  limited  to,  any
          letter-of-credit  rights  described  on Schedule A attached hereto and
          incorporated  herein  by  this  reference;

     [ ]  All as-extracted collateral including, but not limited to all minerals
          or  the  like  and  accounts  resulting  from sales at the wellhead or
          minehead  located  on  or  related  to  the real property described on
          Schedule  B attached hereto and incorporated herein by this reference;

     [ ]  All  standing timber which is to be cut and removed under a conveyance
          or  contract  for  sale  located  on  the  real  property described on
          Schedule  B attached hereto and incorporated herein by this reference;

     [ ]  Other:
          THE  PROPERTY  DESCRIBED  ON  SCHEDULE  A.

ALL MONIES, INSTRUMENTS, AND SAVINGS, CHECKING, SHARE OR OTHER ACCOUNTS OF OWNER
(EXCLUDING  IRA,  KEOGH,  AND  OTHER  ACCOUNTS  SUBJECT  TO  TAX PENALTIES IF SO
ASSIGNED)  THAT  ARE  NOW  OR  IN  THE  FUTURE  IN  LENDER'S CUSTODY OR CONTROL;
ALL  MONIES  OR  INSTRUMENTS  PERTAINING  TO  ANY  OF  THE  ABOVE;
ALL  ACCESSIONS, ACCESSORIES, ADDITIONS, AMENDMENTS, ATTACHMENTS, MODIFICATIONS,
REPLACEMENTS  AND  SUBSTITUTIONS  TO  ANY  OF  THE  ABOVE;
ALL  COMPONENTS  AND  SUPPLIES  OF  ANY  OF  THE  ABOVE;
ALL  PROCEEDS  AND  PRODUCTS  OF  ANY  OF  THE  ABOVE;  AND
ALL  SUPPORTING  OBLIGATIONS  OF  THE  ABOVE.

<PAGE>
4.   OWNER'S  TAXPAYER  INDENTIFICATION.  Owner's  social  security  number  or
federal  taxpayer  identification  number  is:  58-1033765.

5.  OWNER'S  LOCATION.  [ ]  Owner  is  an  individual  and maintains his or her
principal  residence  in  the  state  of:_______________________. [X] Owner is a
CORPORATION duly incorporated, registered, formed or organized, validly existing
and  in  good  standing  under the laws of the state of: GEORGIA. [ ] Owner is a
_______________________  and maintains its principal place of business or, if it
has  more than one place of business, its chief executive office in the state of
___________________________.
6.   REPRESENTATIONS,  WARRANTIES, AND COVENANTS, Owner represents, warrants and
     covenants  to  Lender  that:

(a)  Owner  is  and  shall  remain  the  sole  owner  of  the  Collateral;
(b)  Neither  Owner,  nor, to the best of Owner's knowledge, any other party has
     used, generated, released, discharged, stored, or disposed of any hazardous
     waste,  toxic  substance,  or  related  material  or  transported  any such
     material  except  as  allowed by and in accordance with applicable federal,
     state  and  local law and regulation. Owner shall not commit or permit such
     actions  to  be  taken  in the future. The term "Hazardous Materials" shall
     mean any substance, material, or waste which is or becomes regulated by any
     governmental  authority  including, but not limited to, (i) petroleum; (ii)
     asbestos; (iii) polychlorinated biphenyls; (iv) those substances, materials
     or  wastes designated as a "hazardous substance" pursuant to Section 311 of
     the  Clean  Water  Act or listed pursuant to Section 307 of the Clean Water
     Act  or  any  amendments  or  replacements  to  these  statutes;  (v) those
     substances,  materials or wastes defined as a "hazardous waste" pursuant to
     Section  1004  of  the  Resource  Conservation  and  Recovery  Act  or  any
     amendments  or  replacements  to  that  statute;  or (vi) those substances,
     materials  or wastes defined as a "hazardous substance" pursuant to Section
     101 of the Comprehensive Environmental Response, Compensation and Liability
     Act,  or  any  amendments  or  replacements  to  that  statute. Owner is in
     compliance  in  all  respects  with all applicable federal, state and local
     laws  and  regulations,  including,  without  limitation, those relating to
     "Hazardous  Materials",  as defined herein, and other environmental matters
     (the "Environmental Laws") and neither the federal government nor any other
     governmental  or  quasi  governmental  entity  has  filed  a  lien  on  the
     Collateral,  nor are there any pending or threatened governmental, judicial
     or  administrative  actions  with  respect  to environmental matters, which
     involve  the  Collateral;
(c)  Owner's  location  (Owner's  place  of  organization,  principal  place  of
     business, or if more than one place of business, chief executive office, or
     principal  residence) is in the state indicated in paragraph 5. Owner shall
     not change its state of location without first notifying Lender in writing;
(d)  During  the  four  month period prior to the date hereof, the Collateral is
     located  and has been located at the Owner's address described above or any
     address  described  on Schedule C. Owner shall immediately advise Lender in
     writing  of  any  change  in  or  addition  to  the  foregoing  addresses;
(e)  Owner shall not become a party to any restructuring of its form of business
     or  participate  in  any  consolidation, merger, liquidation or dissolution
     without  Lender's  prior  written  consent;
(f)  Owner's  exact  legal  name  is  as  set  forth  on  the first page of this
     Agreement.  Owner  shall not change such name or use any trade name without
     Lender's  prior  written  consent, and shall notify Lender of the nature of
     any  intended change of Owner's name, or the use of any trade name, and the
     proposed  effective  date  of  such  change;
(g)  The  Collateral  is and shall at all times remain free of all tax and other
     liens,  security  interests, encumbrances and claims of any kind except for
     those belonging to Lender and those described on Schedule D attached hereto
     and incorporated herein by this reference. Without Lender waiving the Event
     of Default as a result thereof, Owner shall take any action and execute any
     document  needed  to  discharge any liens, security interests, encumbrances
     and  claims  not  described  in  Schedule  D;
(h)  Owner  shall  defend  the  Collateral against all claims and demands of all
     persons  at  any  time  claiming  any  interest  therein;
(i)  Owner  will cooperate with Lender in obtaining and maintaining control with
     respect  to  all  deposit  accounts,  investment property, letter-of-credit
     rights  and  electronic  chattel  paper  constituting  the  Collateral;
(j)  Owner  shall provide Lender with possession, as appropriate, of all chattel
     paper,  instruments,  documents  and  investment  property constituting the
     Collateral,  and  Owner shall promptly mark all chattel paper, instruments,
     documents  and investment property constituting the Collateral to show that
     the  same  are  subject  to  Lender's  security  interest;
(k)  All  of  Owner's  accounts;  chattel  paper;  deposit  accounts; documents;
     general  intangibles;  instruments;  investment  property; letter-of-credit
     rights;  and  federal,  state,  county,  and municipal government and other
     permits  and  licenses;  trusts,  liens,  contracts, leases, and agreements
     constituting  the  Collateral  are  and shall be valid, genuine and legally
     enforceable  obligations  and rights belonging to Owner against one or more
     third  parties  and  not  subject  to  any  claim,  defense,  set-off  or
     counterclaim  of  any  kind;
(l)  Owner  shall not amend, modify, replace, or substitute any account; chattel
     paper;  deposit  account;  document;  general  intangible;  instrument;
     investment  property; or letter-of-credit right constituting the Collateral
     without  the  prior  written  consent of Lender. Owner shall not create any
     chattel  paper  constituting the Collateral without placing a legend on the
     chattel  paper  acceptable  to Lender indicating that Lender has a security
     interest  in  the  chattel  paper;
(m)  No  person  shall  file  an amendment that is a termination statement for a
     financing  statement  concerning  any  of  the Collateral without the prior
     written  consent  of  Lender, except to the extent permitted by the Uniform
     Commercial  Code  presently  or  as  hereafter  amended  or  replaced;
(n)  Owner  has  the  right and is duly authorized to enter into and perform its
     obligations  under  this  Agreement.  Owner's  execution and performance of
     these  obligations do not and shall not conflict with the provisions of any
     statute,  regulation,  ordinance,  rule of law, contract or other agreement
     which  may  now  or  hereafter  be  binding  on  Owner;
(o)  No  action or proceeding is pending against Owner which might result in any
     material  or  adverse  change  in  its  business  operations  or  financial
     condition  or  materially  affect  the  Collateral;
(p)  Owner has not violated and shall not violate any applicable federal, state,
     county  or  municipal  statute,  regulation or ordinance (including but not
     limited  to  those  governing Hazardous Materials) which may materially and
     adversely  affect  its  business  operations  or financial condition or the
     Collateral;
(q)  Owner  shall, upon Lender's request, deposit all proceeds of the Collateral
     into  an  account  or  accounts  maintained  by Owner or Lender at Lender's
     institution;
(r)  Owner  will,  upon  receipt, deliver to Lender as additional Collateral all
     securities distributed on account of the Collateral such as stock dividends
     and  securities  resulting  from  stock  splits,  reorganizations  and
     recapitalizations;  and
(s)  Owner  agrees  to  the  terms  of  the  Obligations and to the terms of any
     renewals,  extensions,  amendments,  modifications,  replacements  or
     substitutions  of  the  Obligations;
(t)  Owner  agrees  Lender may enter into agreements in the future with Borrower
     which,  if  this  Agreement so provides, will become Obligations secured by
     the  Collateral  described  in  this  Agreement;
(u)  Owner  agrees  property  other  than  the  Collateral  may  also secure the
     Obligations; Lender shall have no obligation to exercise its rights against
     such property prior to exercising its rights against the Collateral; Lender
     may  accept  substitutions  or  exchanges for any such property; Lender may
     release  its  security  interest in such property at any time; and, parties
     other  than  Borrower may be or may become obligated under the Obligations;
     and
(v)  This Agreement and the obligations described in this Agreement are executed
     and  incurred  for  business  and  not  consumer  purposes.

7.   SALE  OF COLLATERAL.  Owner shall not assign, convey, lease, sell, license,
exchange  or transfer any of the Collateral to any third party without the prior
written  consent  of  Lender  except  for  sales  of  inventory to buyers in the
ordinary  course  of  business.

8.   FINANCING STATEMENTS AND OTHER DOCUMENTS.  Owner shall at any time and from
time  to  time  take all actions and execute all documents required by Lender to
attach,  perfect  and  maintain Lender's security interest in the Collateral and
establish  and maintain Lender's right to receive the payment of the proceeds of
the  Collateral  including,  but  not  limited  to,  executing  any  financing
statements,  fixture  filings,  continuation  statements,  notices  of  security
interest  and other documents required by the Uniform Commercial Code, presently
or  as hereafter amended or replaced, and other applicable law.  Owner shall pay
the  costs  of filing such documents in all offices wherever filing or recording
is  deemed  by  Lender to be necessary or desirable.  Owner authorizes Lender to
execute  and  file any financing statements, as well as extensions, renewals and
amendments of financing statements in such form as Lender may require to perfect
and  maintain  perfection  of  any  security interest granted in this Agreement.

9.   INQUIRIES  AND  NOTIFICATION  TO  THIRD  PARTIES.  Owner  hereby authorizes
Lender  to  contact  any  third party and make any inquiry pertaining to Owner's
financial  condition  or  the  Collateral.  In addition, Lender is authorized to
provide oral or written notice of its security interest in the Collateral to any
third  party.

10.  LOCK BOX, COLLATERAL ACCOUNT. If Lender so requests at any time (whether or
not  Owner  is  in  default  of  this  Agreement), Owner will direct each of its
account debtors to make payments due under the relevant account or chattel paper
directly  to  a special lock box to be under the control of Lender. Owner hereby
authorizes and directs Lender to deposit into a special collateral account to be
established  and  maintained  with  Lender  all checks, drafts and cash payments
received  in  the  lock  box.  All  deposits  in  the  collateral  account shall
constitute  proceeds  of  Collateral  and  shall  not  constitute payment of any
Obligation.  At  its  option,  Lender  may, at any time, apply finally collected
funds  on deposit in the collateral account to the payment of the Obligations in
such  order  of application as Lender may determine, or permit Owner to withdraw
all  or  any  part  of  the  balance  on deposit in the collateral account. If a
collateral  account  is  so  established,  Owner agrees that Owner will promptly
deliver  to  Lender,  for  deposit  into the collateral account, all payments on
accounts  and  chattel  paper  received  by  Owner.  All  such payments shall be
delivered  to  Lender  in  the  form received (except for Owner's endorsement if
necessary).  Until  so  deposited,  all  payments  on accounts and chattel paper
received  by  Owner  shall  be held in trust by Owner for and as the property of
Lender  and  shall  not  be  commingled  with  any  funds  or property of Owner.

<PAGE>
11.  COLLECTION OF INDEBTEDNESS FROM THIRD PARTIES.  Lender shall be entitled to
notify, and upon the request of Lender, Owner shall notify any account debtor or
other  third  party  (including, but not limited to, insurance companies) to pay
any  indebtedness  or  obligation owing to Owner and constituting the Collateral
(collectively  "Indebtedness")  to  Lender whether or not a default exists under
this  Agreement.  Owner shall diligently collect the Indebtedness owing to Owner
from  its  account  debtors  and  other  third  parties until the giving of such
notification.  In  the  event that Owner possesses or receives possession of any
instruments  or other remittances with respect to the Indebtedness following the
giving  of  such  notification  of  if  the  instruments  or  other  remittances
constitute  the  prepayment  of any Indebtedness or the payment of any insurance
proceeds,  Owner  shall hold such instruments and other remittances in trust for
Lender  apart  from  its  other  property,  endorse  the  instruments  and other
remittances  to  Lender,  and  immediately provide Lender with possession of the
instruments  and other remittances.  Lender shall be entitled, but not required,
to  collect  (by  legal  proceedings or otherwise), extend the time for payment,
compromise,  exchange  or release any obligor or collateral, or otherwise settle
any  of  the  Indebtedness  whether or not an Event of Default exists under this
Agreement.  Lender  shall not be liable to Owner for any action, error, mistake,
omission  or  delay pertaining to the actions described in this paragraph or any
damages  resulting  therefrom.

12.  POWER OF ATTORNEY.  Owner hereby appoints Lender as its attorney-in-fact to
endorse  Owner's  name on all instruments and other remittances payable to Owner
with  respect to the Indebtedness, including any items received by Lender in any
lockbox account, or other documents pertaining to Lender's actions in connection
with the Indebtedness.  In addition, Lender shall be entitled, but not required,
to  perform  any action or execute any document required to be taken or executed
by Owner under this Agreement.  Lender's performance of such action or execution
of  such  documents  shall  not  relieve  Owner  from any obligation or cure any
default  under  this  Agreement.  The  powers  of  attorney  described  in  this
paragraph  are  coupled  with  an  interest  and  are  irrevocable.

13.  USE  AND  MAINTENANCE OF COLLATERAL.  Owner shall use the Collateral solely
in  the  ordinary course of its business, for the usual purposes intended by the
manufacturer  (if  applicable),  with  due  care,  and  in  compliance  with all
applicable laws, ordinances, regulations, requirements and rules of all federal,
state,  county  and  municipal  authorities  including  environmental  laws  and
regulations  and  insurance  policies.  Owner  shall  not  make any alterations,
additions or improvements to the Collateral without the prior written consent of
Lender.  Owner  shall ensure that Collateral which is not now a fixture does not
become  a  fixture.  Without limiting the foregoing, all alternations, additions
and  improvements  made  to  the  Collateral  shall  be  subject to the security
interest  belonging  to  Lender,  shall not be removed without the prior written
consent  of Lender, and shall be made at Owner's sole expense.  Owner shall take
all  actions  and  make  any  repairs  or  replacements  needed  to maintain the
Collateral  in  good  condition  and  working  order.

14.  LOSS  OR  DAMAGE.  Owner  shall  bear  the  entire risk of any loss, theft,
destruction  or damage (collectively "Loss or Damage") to all or any part of the
Collateral.  In  the  event of any Loss or Damage, Owner will either restore the
Collateral  to  its  previous  condition,  replace  the  Collateral with similar
property acceptable to Lender in its sole discretion, or pay or cause to be paid
to  Lender  the  decrease  in  the fair market value of the affected Collateral.
Lender  has  no  duty  to  collect  any  income accruing on the Collateral or to
preserve  any  rights  relating  to  the  Collateral.

15.  INSURANCE.  The  Collateral will be kept insured for its full value against
all  hazards  including loss or damage caused by fire, collision, theft or other
casualty.  If  the  Collateral  consists  of  a motor vehicle, Owner will obtain
comprehensive  and  collision  coverage  in amounts at least equal to the actual
cash  value  of  the  vehicle  with  deductibles  not  to exceed $     N/A     .
                                                                  -------------
Insurance coverage obtained by Owner shall be from a licensed insurer subject to
Lender's  approval.  Owner shall assign to Lender all rights to receive proceeds
of  insurance  not  exceeding  the  amount  owed under the Obligations described
above,  and  direct  the  insurer  to  pay all proceeds directly to Lender.  The
insurance policies shall require the insurance company to provide Lender with at
least   30   days'  written notice before such policies are altered or cancelled
      ------
in  any  manner.  The insurance policies shall name Lender as a loss payee or as
an  additional insured as required by Lender and provide that no act or omission
of  Owner  or  any  other person shall affect the right of Lender to be paid the
insurance  proceeds  pertaining to the loss or damage of the Collateral.  In the
event  Owner  fails  to  acquire  or maintain insurance, Lender (after providing
notice  as  may  be  required  by law) may in its discretion procure appropriate
insurance  coverage  upon  the  Collateral  and  charge the insurance cost as an
advance of principal under the promissory note.  Owner shall furnish Lender with
evidence  of  insurance  indicating  the  required  coverage.  Lender may act as
attorney-in-fact  for  Owner  in  making  and  settling  claims  under insurance
policies,  cancelling  any  policy  or  endorsing  Owner's  name on any draft or
negotiable  instrument  drawn  by  any  insurer.

16.  INDEMNIFICATION.  Lender  shall  not  assume  or  be  responsible  for  the
performance  of  any of Owner's obligations with respect to the Collateral under
any  circumstances.  Owner  shall immediately provide Lender with written notice
of  and  hereby  indemnifies  and  holds Lender and its shareholders, directors,
officers,  employees  and  agents harmless from all claims, damages, liabilities
(including attorneys' fees and legal expenses), causes of action, actions, suits
and  other  legal proceedings (collectively "Claims") pertaining to its business
operations  or  the Collateral including, but not limited to, those arising from
Lender's  performance  of  Owner's obligations with respect to the Collateral or
claims  involving Hazardous Materials.  Owner, upon the request of Lender, shall
hire  legal  counsel  to  defend Lender from such Claims, and pay the attorneys'
fees,  legal expenses and other costs to the extent permitted by applicable law,
incurred  in connection therewith.  In the alternative, Lender shall be entitled
to  employ  its  own  legal  counsel  to  defend  such  Claims  at Owner's cost.

17.  TAXES  AND  ASSESSMENTS.  Owner  shall execute and file all tax returns and
pay  all  taxes,  licenses,  fees  and  assessments  relating  to  its  business
operations  and  the  Collateral  (including,  but not limited to, income taxes,
personal property taxes, withholding taxes, sales taxes, use taxes, excise taxes
and  workers'  compensation  premiums)  in  a  timely  manner.

18.  INSPECTION  OF  COLLATERAL AND BOOKS AND RECORDS.  Owner shall allow Lender
or  its  agents  to  examine,  inspect  and  make  abstracts  and  copies of the
Collateral  and  Owner's  books  and  records  pertaining  to  Owner's  business
operations  and  financial  condition  or  the Collateral during normal business
hours.  Owner  shall  provide  any  assistance  required  by  Lender  for  these
purposes.  All of the signatures and information pertaining to the Collateral or
contained in the books and records shall be genuine, true, accurate and complete
in  all  respects.  Owner shall note the existence of Lender's security interest
in  its  books  and  records  pertaining  to  the  Collateral.

19.  EVENT  OF DEFAULT.  An Event of Default shall occur under this Agreement in
the  event  that  Owner,  Borrower  or  any guarantor of any of the Obligations:

     (a)  fails  to  make  any  payment  under  this  Agreement  or  any  other
          indebtedness  to  Lender  when  due;
     (b)  fails  to  perform any obligation or breaches any warranty or covenant
          to  Lender  contained in this Agreement or any other present or future
          written  agreement regarding this or any other indebtedness to Lender;
     (c)  provides or causes any false or misleading signature or representation
          to  be  provided  to  Lender;
     (d)  sells,  conveys,  or  transfers  rights  in any Collateral without the
          written approval of Lender; destroys, loses or damages such Collateral
          in  any  material  respect;  or  subjects  such Collateral to seizure,
          confiscation,  or  condemnation;
     (e)  seeks  to revoke, terminate or otherwise limit its liability under any
          continuing  guaranty;
     (f)  has  a  garnishment, judgment, tax levy, attachment or lien entered or
          served  against  Owner,  Borrower,  or  any guarantor, or any of their
          property  including  the  Collateral;
     (g)  dies,  becomes legally incompetent, is dissolved or terminated, ceases
          to  operate  its  business, becomes insolvent, makes an assignment for
          the  benefit  of creditors, fails to pay any debts as they become due,
          or  becomes  the  subject  of  any  bankruptcy,  insolvency  or debtor
          rehabilitation  proceeding;
     (h)  allows  the  Collateral  to  be  used  by anyone to transport or store
          goods,  the  possession,  transportation, or use of which, is illegal;
     (i)  fails  to provide Lender evidence of satisfactory financial condition;
     (j)  has a majority of its outstanding voting securities sold, conveyed, or
          transferred  to  any  person or entity other than any person or entity
          that  has  the  majority  ownership as of the date of the execution of
          this  agreement;  or
     (k)  if  Lender  deems itself insecure in good faith with respect to any of
          the  Obligations.

20.  RIGHTS  OF  LENDER  ON  EVENT  OF DEFAULT.  If there is an Event of Default
under  this  Agreement,  Lender shall be entitled to exercise one or more of the
following  remedies  without  notice  or  demand  (except  as  required by law):

     (a)  to  declare  the Obligations immediately due and payable in full; such
          acceleration  shall be automatic and immediate if the Event of Default
          is  a  filing  under  the  Bankruptcy  Code;
     (b)  to  collect  the  outstanding Obligations with or without resorting to
          judicial  process;
     (c)  to  change  Owner's mailing address, open Owner's mail, and retain any
          instruments or other remittances constituting the Collateral contained
          therein;
     (d)  to  take  possession of any Collateral in any manner permitted by law;
     (e)  to apply for and obtain, without notice and upon ex parte application,
          the  appointment  of  a  receiver for the Collateral without regard to
          Owner's  financial  condition  or  solvency,  the  adequacy  of  the
          Collateral to secure the payment or performance of the obligations, or
          the  existence  of  any  waste  to  the  Collateral;
     (f)  to  require  Owner  to  deliver  and  make  available  to  Lender  any
          Collateral  at  a  place  reasonably  convenient  to Owner and Lender;
     (g)  to  sell, lease or otherwise dispose of any Collateral and collect any
          deficiency  balance  with  or  without  resorting  to  legal  process;
     (h)  to  set-off  Owner's  obligations  against  any  amounts  due to Owner
          including,  but  not  limited  to,  monies,  instruments,  and deposit
          accounts  maintained  with  Lender;  and
     (i)  to  exercise  all  other  rights  available  to Lender under any other
          written  agreement  or  applicable  law.

Lender's rights are cumulative and may be exercised together, separately, and in
any order. Unless the Collateral is perishable, threatens to decline speedily in
value  or  is  of  a  type  customarily sold on a recognized market, Lender will
provide  five  days  notice  of  the  time  and  place  of  any sale or intended
disposition  as  required  under  the  Uniform  Commercial Code, presently or as
hereafter amended or replaced. Lender has no obligation to clean up or otherwise
prepare  the Collateral for sale. Lender may comply with any applicable state or
federal  law

<PAGE>
requirements  in  connection with a disposition of the Collateral and compliance
will  not be considered adversely to affect the commercial reasonableness of any
sale  of  the Collateral. If the Collateral consists of securities, Lender shall
be  entitled  to transfer the securities into the name of Lender or its designee
and  to  vote the securities. Lender shall be authorized to notify the issuer of
the  securities  to  remit  any  related  dividends,  interest,  and  securities
resulting  from  stock  splits, reorganizations, and capitalizations directly to
Lender or its designee. In the event that Lender institutes an action to recover
any  Collateral  or  seeks  recovery  of  any Collateral by way of a prejudgment
remedy  in  an  action against Owner, Owner waives the posting of any bond which
might otherwise be required. Upon default, Owner shall segregate all proceeds of
Collateral  and  hold such proceeds in trust for Lender. Lender's remedies under
this  paragraph  are  in  addition to those under any other written agreement or
applicable  law.

21.  APPLICATION  OF PAYMENTS.  Whether or not a default has occurred under this
Agreement,  all  payments  made  by or on behalf of Owner and all credits due to
Owner from the disposition of the Collateral or otherwise may be applied against
the  amounts  paid  by  Lender (including attorneys' fees and legal expenses) in
connection  with  the  exercise  of  its  rights  or  remedies described in this
Agreement  and  any  interest  thereon  and then to the payment of the remaining
Obligations  in  whatever  order  Lender  chooses.

22.  REIMBURSEMENT  OF  AMOUNTS EXPENDED BY LENDER. Owner shall reimburse Lender
for  all  amounts  (including  attorneys'  fees  and legal expenses) expended by
Lender  in  the  performance  of any action required to be taken by Owner or the
exercise  of  any  right  or  remedy  belonging  to Lender under this Agreement,
together with interest thereon at the lower of the highest rate described in any
promissory  note  or credit agreement executed by Borrower or Owner to Lender or
the  highest  rate  allowed  by  law  from the date of payment until the date of
reimbursement.  These  sums  shall be included in the definition of Obligations,
shall  be  secured  by  the Collateral identified in this Agreement and shall be
payable upon demand.  Lender has no duty to take any action to protect the value
of  the  Collateral  or  to exercise any rights of the Owner with respect to the
Collateral.

23.  ASSIGNMENT.  Owner  shall  not  be  entitled  to  assign any of its rights,
remedies  or  obligations  described in this Agreement without the prior written
consent  of  Lender.  Consent  may be withheld by Lender in its sole discretion.
Lender  shall  be entitled to assign any of its rights and remedies described in
this  Agreement  without  notice  to  or  the  prior  consent  of  Owner.

24.  MODIFICATION  AND  WAIVER.  The  modification  or  waiver of any of Owner's
obligations  or  Lender's  rights  under  this  Agreement must be contained in a
writing  signed  by  Lender.  Lender  may  perform any of Owner's obligations or
delay  or  fail  to exercise any of its rights without causing a waiver of those
obligations  or  rights.  A waiver on one occasion shall not constitute a waiver
on  any  other  occasion.  Owner's obligations under this Agreement shall not be
affected if Lender amends, compromises, exchanges, fails to exercise, impairs or
releases  any of the obligations belonging to any Owner or third party or any of
its  rights  against  any  Owner, third party, Collateral, or any other property
securing  the Obligations.  Owner waives any right it may have to require Lender
to  pursue  any  third  person  for  any  of  the  Obligations.

25.  SUCCESSORS  AND ASSIGNS.  This Agreement shall be binding upon and inure to
the  benefit  of  Owner  and  Lender  and  their respective successors, assigns,
trustees,  receivers, administrators, heirs, personal representatives, legatees,
and  devisees.

26.  NOTICES.  Any  notice  or  other  communication  to  be provided under this
Agreement  shall  be  in  writing  and  mailed  to  the parties at the addresses
described  in  this Agreement or such other address as the parties may designate
in  writing  from  time  to  time.

27.  SEVERABILITY.  If  any  provision  of this Agreement violates the law or is
unenforceable,  the  rest  of  the  Agreement  shall  remain  valid.

28.  APPLICABLELAW. This Agreement shall be governed by the laws of the state of
GEORGIA,  except  to  the  extent that Article 9 of the Uniform Commercial Code,
presently  or  as hereafter amended or replaced, provides for the application of
the  law  of  the state of Owner's location, as indicated in paragraph 5. Unless
applicable  law provides otherwise, Owner consents to the jurisdiction and venue
of  any court located in such state selected by Lender in the event of any legal
proceeding  under  this  Agreement.

29.  COLLECTION  COSTS.  To the extent permitted by law, Owner agrees to pay all
costs  of  collection  and  attorneys'  fees  in  realizing  on  the Collateral.

30.  MISCELLANEOUS.  This  Agreement  is executed for commercial purposes. Owner
shall  supply  information  regarding  Owner's business operations and financial
condition  or  the Collateral in the form and manner as requested by Lender from
time  to  time.  All  information  furnished  by  Owner to Lender shall be true,
accurate  and  complete in all respects.  Owner and Lender agree that time is of
the  essence.  Owner  waives presentment, demand for payment, notice of dishonor
and protest except as required by law. All references to Owner in this Agreement
shall  include all parties signing below. If there is more than one Owner, their
obligations  under  this  Agreement  shall  be joint and several. This Agreement
shall  remain  in full force and effect until Lender provides Owner with written
notice  of  termination.  This  Agreement represents the complete and integrated
understanding  between  Owner  and  Lender  regarding  the  terms  hereof.

31.  WAIVER  OF  JURY TRIAL.  LENDER AND OWNER HEREBY WAIVE ANY RIGHT TO A TRIAL
BY  JURY  IN  ANY  CIVIL  ACTION  ARISING  OUT  OF, OR BASED UPON, THIS SECURITY
AGREEMENT.

32.  WAIVER  OF  O.C.G.A. SECTION 10-7-24: OWNER WAIVES ALL RIGHTS UNDER SECTION
10-7-24  OF  THE  OFFICIAL  CODE  OF  GEORGIA  ANNOTATED, INCLUDING ANY RIGHT TO
REQUIRE  LENDER  TO  PROCEED  AGAINST  BORROWER.

33.  ADDITIONAL  TERMS:

--------------------------------------------------------------------------------
OWNER ACKNOWLEDGES THAT OWNER HAS READ, UNDERSTANDS, AND AGREES TO THE TERMS AND
CONDITIONS  OF  THIS  AGREEMENT.  OWNER ACKNOWLEDGES RECEIPT OF AN EXACT COPY OF
THIS  AGREEMENT.

Dated:    May  30,  2004

OWNER:  AMERICAN  CONSUMERS,  INC.      OWNER:  AMERICAN  CONSUMERS,  INC.
        DBA  SHOP  RITE  SUPERMARKET            DBA  SHOP  RITE  SUPERMARKET

     /s/  Michael  A.  Richardson             /s/  Paul  R.  Cook
By:______________________________       By:______________________________
MICHAEL  A.  RICHARDSON                 PAUL  R  COOK
PRESIDENT                               EXECUTIVE  VICE  PRESIDENT

OWNER:                                  OWNER:

_________________________________       ________________________________

<PAGE>
                                   SCHEDULE A

ALL  ACCOUNTS RECEIVABLE, INVENTORY, MACHINES & EQUIPMENT, FURNITURE & FIXTURES,
NOW  EXISTING  OR  HEREAFTER  ACQUIRED;  OR  ANY  SUBSTITUTIONS.

                                   SCHEDULE B

Record Owner Name:

                                   SCHEDULE C

                                   SCHEDULE D

<PAGE>

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00074-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00074-of-00352.parquet"}]]