Document:

[WACHOVIA LOGO]

Note and Security Agreement

          This Note and Security Agreement is a renewal of an existing
            Note and Security Agreement between Borrower and Lender.

                                               Account No. 002-050-0001503-00001

Dalton, Georgia

February 14, 2000                                                    $600,000.00

FOR VALUE RECEIVED, the undersigned (hereinafter called the "Borrower") hereby
promises to pay to the order of Wachovia Bank, N.A. (hereinafter called the
"Lender") at its office where borrowed, in immediately available funds of lawful
money of the United States, the sum of Six Hundred Thousand and 00/100 Dollars
($600,000.00 ) together with any unpaid interest hereon from date of advance, in
accordance with the terms contained in this Note. The optional provisions
applicable to this Note are checked below.

Repayment:

|_|  One payment in full of principal and unpaid interest due ________________.

|_|  On Demand ________________.

|_|  ________________ payments of _______________beginning ___________________
     and thereafter ________________ until ________________ , when the entire
     principal amount then outstanding and all accrued but unpaid interest shall
     be paid in full.

|X|  On Demand the principal amount set forth above or the unpaid principal
     amount of all advances which the Lender actually makes hereunder to the
     Borrower. whichever amount is less. Each advance and each payment made on
     account of the principal thereof shall be evidenced on an attachment
     hereto; provided, however, any such notation or the failure of the Lender
     or other holder to make any such notation shall not limit or otherwise
     affect the obligation of the Borrower with respect to repayment of all
     advances actually made hereunder. This Note and any attachment hereto shall
     be used to record the outstanding principal balance advanced hereunder
     until it is surrendered to the Borrower by the Lender, and it shall
     continue to be used even though there may be periods prior to such
     surrender when no amount of principal or interest is owing hereunder. If
     advances of the principal amount hereof are to be made by Lender to the
     Borrower after the date of this Note, Lender, at its sole discretion, is
     hereby authorized to make such advances under this Note upon telephonic or
     written communication of a borrowing request from any person representing
     himself or herself to be the Borrower or, in the event the Borrower is a
     partnership or corporation, a duly authorized officer or representative of
     Borrower.

Interest:

Payable: |X|  in arrears;  |_|  in advance.

         |X|  in addition to the payments described above; |_| included in the
              payments described above.

Payable at the rate per annum of: |X| Prime Rate plus 0.00%; |_|___________% of
Prime Rate; |_|_________ % Fixed;

|_|  Those rates which may be offered from time to time by the Lender and agreed
     to by the Borrower and so noted by the Lender on an attachment hereto. In
     the event of a good faith dispute among the parties to this Note as to rate
     under this rate option, the rate shall be the Prime Rate, adjusted for any
     changes in the Prime Rate as of the day such Prime Rate changes;

|_|  The rate(s) set forth in Schedule 1 attached to this Note and incorporated
     herein by reference;

|_|  Those rates which have been offered by the Lender to the Borrower in the
     Loan Agreement or Commitment Letter checked below, the provisions of which
     shall determine such rates, the procedure for the selection of such rates
     and the time periods for which such rates shall apply.

In no case shall interest exceed the maximum rate permitted by applicable law.

|X|  In addition, Borrower agrees to pay to lender a non-refundable loan fee of
     $250.00.

If the interest is based upon the Prime Rate, such interest rate will be
adjusted on:

|X|  The day the Prime Rate changes |_| Other_______________.

Due: |_| On principal payment dates |X| Other monthly beginning on March 01,
     2000.

Interest will be calculated on the basis of a year of 360 days and paid for the
actual number of days elapsed.

After demand or maturity (whether by acceleration or otherwise), as applicable,
interest on any unpaid balance hereof shall be payable on demand at a rate per
annum equal to the greater of 150% of the Prime Rate, or 2% above the rate
applicable prior to demand or maturity, adjusted for any changes in the Prime
Rate as of the day such Prime Rate changes, not to exceed the maximum rate
permitted by applicable law.

To the extent not prohibited by law, a late charge of four percent (4%) or the
applicable statutory maximum, whichever is greater, shall be assessed on any
payment remaining past due for fifteen (15) days or more unless interest on this
Note is payable in advance, in which case such period shall instead be thirty
(30) days or more; provided, however, that if any applicable statute allows a
shorter minimum time period for the imposition of a late charge, such shorter
time period shall prevail.

As used herein, "Prime Rate" refers to that interest rate so denominated and set
by the Lender from time to time as an interest rate basis for borrowings. The
Prime Rate is one of several interest rate bases used by the Lender. The Lender
lends at interest rates above and below the Prime Rate.

All payments on this Note shall be applied, in accordance with the then current
billing statement applicable to this Note, first to accrued interest, then to
fees, then to principal due, and then to late charges. Any remaining funds shall
be applied to the further reduction of principal. Notwithstanding the foregoing,
upon the occurrence of a default hereunder, payments shall be applied as
determined by Lender in its sole discretion.

<PAGE>

|_|  The terms and conditions in a Loan Agreement dated __________ between the
     parties hereto, as the same may be amended from time to time, shall be
     considered a part hereof to the same extent as if written herein.

|_|  The terms and conditions in a Commitment Letter dated February 10, 2000
     from the Lender to the Borrower, as the same may be amended, extended or
     replaced from time to time, shall be considered a part hereof to the same
     extent as if written herein.

In addition to any other collateral specified herein and in other agreements, to
secure the indebtedness evidenced by this Note, together with any extensions,
modifications, or renewals thereof, in whole or in part, as well as all other
indebtedness, obligations and liabilities of the Borrower to the Lender, now
existing or hereafter incurred or arising (hereinafter sometimes referred to as
the "Obligations"), except for other indebtedness, obligations and liabilities
owing to Lender that constitute (a) consumer credit as defined in Federal
Reserve Board Regulation Z or (b) non-consumer credit if under applicable state
law the maximum interest rate for such credit is reduced when secured (herein
collectively referred to as "Restricted Debt"), the Borrower does hereby grant
to the Lender a security interest in and security title to, and does hereby
assign, pledge, transfer and convey to Lender the following described property:

Certificate of Deposit Number 6390610 in the amount of $423,735.74 held in
Wachovia Bank, N.A.

whether now owned or hereafter acquired, together with any and all additions and
accessions thereto or replacements thereof, returned or unearned premiums from
any insurance written in connection with this Note and any products and/or
proceeds of any of the foregoing. In no event, however, shall the Lender have a
security interest in any goods acquired by the Borrower for personal, family or
household purposes more than 10 days after the date of this Note, unless such
goods are added to or attached to the Collateral (as hereinafter defined). In
addition, to the extent not prohibited by law, the Borrower hereby grants to the
Lender a security interest in and security title to, and does hereby assign,
pledge, transfer and convey to Lender, (i) all other property of the Borrower of
every kind or description now or hereafter in the possession or control of the
Lender, exclusive of any such property in the possession or control of the
Lender as a fiduciary other than as agent, for any reason including, without
limitation, all cash, stock or other dividends and all proceeds thereof, and all
rights to subscribe for securities incident thereto and any substitutions or
replacements for, or other rights in connection with, any of the Collateral and
(ii) any balance or deposit accounts of the Borrower, whether such accounts be
general or special, or individual or multiple party, and upon all drafts, notes,
or other items deposited for collection or presented for payment by the Borrower
with the Lender, and the Lender may at any time, without demand or notice,
appropriate and apply any of such to the payment of any of the Obligations
(except for Restricted Debt), whether or not due. All property described in this
paragraph, in which the Borrower has granted to the Lender a security interest
or security title hereunder, is herein collectively referred to as the
"Collateral." If, with respect to any Collateral in the form of investment
securities, a stock dividend is declared or any stock split-up made or right to
subscribe issued, all the certificates for the shares representing such stock
dividend or split-up or right to subscribe will be immediately delivered, duly
endorsed, to the Lender as additional Collateral. The Lender shall be deemed to
have possession, control and custody of any Collateral actually in transit to it
or to any of its officers or agents.

If at any time the Collateral pledged as security for any of the Obligations
shall be or become unsatisfactory to the Lender or should the Lender deem itself
insecure, the Borrower will immediately furnish such further property to be held
by the Lender as if originally pledged as Collateral hereunder or make such
payment on account as will be satisfactory to the Lender.

The Lender shall have, but shall not be limited to, the following rights, each
of which may be exercised at any time or from time to time: (i) to transfer this
Note and the Collateral, and any transferee shall have all the rights of the
Lender hereunder and the Lender shall be thereafter relieved from any liability
with respect to any Collateral so transferred; (ii) to transfer the whole or any
part of the Collateral in the name of itself or its nominees; (iii) to vote any
investment securities forming a part of the Collateral; (iv) to notify the
obligors on any Obligation to make payment to the Lender of any amounts due
thereon; (v) to execute at any time in the name of any party hereto and to file
financing statements covering any of the Collateral; (vi) to receive or take
control of any income or other proceeds of any of the Collateral; and (vii) to
request and receive current financial information from any party liable for all
or any part of the Obligations.

Borrower will at Lender's request maintain insurance on the Collateral in
amounts at least equal to the fair market value of the Collateral and against
casualty, public liability and property damage risks and such other risks as
Lender may request; provided, however, if the Collateral described above is a
vehicle(s), Borrower agrees to obtain and maintain liability insurance as
required by law and collision and comprehensive insurance with a deductible not
exceeding $500.00. All insurance shall be with companies with a Best Insurance
Report Rating of B+ or better, and Borrower will pay all premiums for insurance
when due. Unless and until requested by Lender, Borrower shall not be required
to name Lender as additional insured in such policy or to provide Lender a copy
of the policy for or certificate evidencing such insurance, but when and if
requested by Lender, the Borrower shall immediately (but no later than five (5)
calendar days) (i) cause all policies of such insurance to specify that Lender
is an additional insured as its interests may appear and to provide that such
insurance shall not be cancellable by Borrower or the insurer without at least
30 days advance written notice to Lender and that proceeds are payable to Lender
regardless of any act or omission of Borrower which would otherwise result in a
denial of a claim; and (ii) deliver all policies or certificates thereof (with
copies of such policies) to Lender. In the event any or all of such insurance is
cancelled, any returned premium thereon may be collected by Lender and applied
by Lender to any part of the Obligations, either matured or unmatured. Lender is
authorized to receive the proceeds of any insurance loss and at the option of
Lender shall apply such proceeds toward either the repair or replacement of the
Collateral or the payment of the Obligations secured hereby. The undersigned
will also pay all taxes and other impositions on the Collateral as well as the
cost of repairs or maintenance to the Collateral. If the undersigned fails to
maintain such insurance or fails to pay any and all amounts for taxes, repairs,
maintenance and other costs, Lender may, at its option, but shall not be
required to, purchase such insurance or pay any premium owing with respect to
such insurance or pay such amounts for taxes, repairs, maintenance and other
costs, and any such sum paid by Lender shall be payable by the Borrower on
demand by Lender or at its option may be added to the Obligations and secured
hereby. The loss, injury or destruction of the Collateral, with or without the
fault of Borrower, shall not release the Borrower from any liability hereunder
or in any way affect Borrower's liability hereunder. Upon (i) any failure of any
Obligor (which term shall include the Borrower and each endorser, surety or
guarantor of this Note) to pay any of the Obligations when due or to observe or
perform any agreement, covenant or promise hereunder or in any other agreement,
note, instrument or certificate of any Obligor to the Lender, now existing or
hereafter executed in connection with any of the Obligations, including, but not
limited to, a loan agreement, if applicable, and any agreement guaranteeing
payment of any of the Obligations; (ii) any default of any Obligor in the
payment or performance of any other liabilities, indebtedness or obligations to
Lender or

<PAGE>

any other creditor or to allow or permit any other liabilities, indebtedness or
obligations to Lender or any other creditor to be accelerated; (iii) any failure
of any Obligor to furnish Lender current financial information upon request;
(iv) any failure of any Obligor or any pledgor of any security interest in the
Collateral (the "Pledgor") to observe or perform any agreement, covenant or
promise contained in any agreement, instrument or certificate executed in
connection with the granting of a security interest in property to secure the
Obligations or any guaranty securing the Obligations; (v) any warranty,
representation or statement made or furnished to the Lender by or on behalf of
any Obligor or Pledgor in connection with the extension of credit evidenced by
this Note proving to have been false in any material respect when made or
furnished; (vi) any loss, theft, substantial damage, destruction, sale,
foreclosure of or encumbrance to any of the Collateral, or the making of any
levy, seizure or attachment thereof or thereon or the rendering of any judgment
or lien or garnishment or attachment against any Obligor or his property,
whether actual or threatened; (vii) the dissolution, change in control,
termination of existence, insolvency, business failure, or appointment of a
receiver of any part of the property of, assignment for the benefit of creditors
by, or the commencement of any proceeding under any bankruptcy or insolvency
laws, state or federal, by or against, the Borrower or any other Obligor; (viii)
any discontinuance or termination of any guaranty of any of the Obligations by a
guarantor; or (ix) the Lender deeming itself insecure; thereupon, or at any time
thereafter, to the extent permitted by law, the Lender at its option may
terminate any obligation to extend any additional credit or make any other
financial accommodation to the Borrower and/or may declare all of the
Obligations to be immediately due and payable, all without notice or demand, and
shall have in addition to and independent of the right to declare the
Obligations to be due and payable and any other rights of the Lender under this
Note or any other agreement with any Obligor or any Pledgor, the remedies of a
secured party under the Uniform Commercial Code of the State of Georgia as
amended from time to time (the "Code"), including, without limitation thereto,
the right to take possession of the Collateral, or the proceeds thereof and to
sell or otherwise dispose thereof, and for this purpose, to sign in the name of
any Obligor of Pledgor any transfer, conveyance or instrument necessary or
appropriate in order for the Lender to sell or dispose of any of the Collateral,
and the Lender may, so far as the Borrower can give authority therefor, enter
upon the premises on which the Collateral or any part thereof may be situated
and remove the same therefrom, without being liable in any way to any Obligor on
account of entering any premises. The Lender may require the Borrower to
assemble the Collateral and make the Collateral available to the Lender at a
place to be designated by the Lender which is reasonably convenient to both
parties. Unless the Collateral is perishable or threatens to decline speedily in
value or is of a type customarily sold on a recognized market, the Lender shall
give the Borrower written notice of the time and place of any public sale
thereof or of the time after which any private sale or other intended
disposition thereof is to be made. The requirement of sending reasonable notice
shall be met if such notice is mailed, postage prepaid, or otherwise given, to
the Borrower or Pledgor at the last address shown on the Lender's records at
least five days before such disposition. If any Obligation (including but not
limited to the Note) is a demand instrument, the statement of a maturity date,
the requirement for the payment of periodic interest or the recitation of
defaults and the right of Lender to declare any Obligation due and payable shall
not constitute an election by Lender to waive its right to demand payment under
a demand at any time and in any event as Lender in its sole discretion may deem
appropriate.

The rights of the Lender specified herein shall be in addition to, and not in
limitation of the Lender's rights under the Code, or any other statute or rules
of law conferring rights similar to those conferred by the Code, and under the
provisions of any other instrument or agreement executed by the Borrower, any
other Obligor or any Pledgor to the Lender. All prior agreements to the extent
inconsistent with the terms of this Note shall be construed in accordance with
the provisions hereof. Any rights or remedies of the Lender may be exercised or
taken in any order or sequence whatsoever, at the sole option of the Lender.

The security agreement set forth herein and the security interest in the
Collateral created hereby shall terminate only when all of the Obligations have
been indefeasibly paid in full and such payments are no longer subject to
rescission, recovery or repayment upon the bankruptcy, insolvency,
reorganization, moratorium, receivership or similar proceeding affecting the
Borrower or any other person. No waiver by the Lender of any default shall be
effective unless in writing nor operate as a waiver of any other default or of
the same default on a future occasion. All rights of the Lender hereunder shall
inure to the benefit of its successors and assigns, and all obligations of the
Borrower shall bind the heirs, legal representatives, successors and assigns of
the Borrower. The Borrower and each endorser, surety or guarantor of this Note,
whether bound by this or by separate instrument or agreement, shall be jointly
and severally liable for the indebtedness evidenced by this Note and hereby
severally (1) waive presentment for payment, demand, protest, notice of
nonpayment or dishonor and of protest and any and all other notices and demands
whatsoever; (2) consent that at any time, or from time to time, payment of any
sum payable under this Note may be extended without notice whether for a
definite or indefinite time; and (3) agree to remain liable until all of the
Obligations are paid in full notwithstanding any impairment, substitution,
release or transfer of Collateral or any one or more Borrower or Obligor by the
Lender, with or without consideration, or of any extension, modification or
renewal. No conduct of the holder shall be deemed a waiver or release of such
liability, unless the holder expressly releases such party in writing. The
Borrower shall pay to the holder on demand all expenses, including reasonable
attorneys' fees and expenses of legal counsel, incurred by the holder in any way
arising from or relating to the enforcement or attempted enforcement of the Note
and any related guaranty, collateral document or other document and the
collection or attempted collection, whether by litigation or otherwise, of the
Note. Time is of the essence.

Borrower acknowledges that Lender may reproduce (by electronic means or
otherwise) any of the documents evidencing and/or securing the Obligations and
thereafter may destroy the original documents. Borrower does hereby agree that
any document so reproduced shall be and remain the binding obligation of
Borrower, enforceable and admissible in evidence against it to the same extent
as if the original documents had not been destroyed.

This Note, and the rights and obligations of the parties hereunder, shall be
governed and construed in accordance with the laws of the State of Georgia.

<PAGE>

IN WITNESS WHEREOF, the Borrower has executed this Note under seal the day and
year set forth above.

                                       BORROWER(S):

                                       American Consumers, Inc.

                                       /s/   Michael A. Richardson (SEAL)
                                       -------------------------------------
                                       By:      Michael A Richardson
                                       Title:   President[WACHOVIA LOGO]

Wachovia Bank, N.A.
Post Office Box 1088
Dalton, Georgia 30722-1088

February 10, 2000

American Consumers, Inc.
Michael A. Richardson, President
P. O. Box 2328
Ft. Oglethorpe, GA 30742

Dear Michael:

Wachovia Bank, N.A. ("Lender") is pleased to offer American Consumers, Inc.
("Borrower") the following credit facilities. This commitment letter amends and
replaces the commitment letter dated November 20, 1998. This Commitment (as
later defined) will become effective upon your acceptance of the terms and
conditions outlined in this letter. This Commitment will expire on September 30,
2000 or on demand, which ever is earlier.

Commitment Type:   Revolving Line of Credit, the "Commitment."

Amount:            Up to $600,000

Purpose:           General working capital purposes

Interest           Rate: Lender's Prime Rate, currently 8.75%, subject to change
                   from time to time. The "Prime Rate" refers to that rate so
                   denominated and set by Lender as an interest rate basis for
                   borrowings. The Prime Rate is but one of several interest
                   rate bases used by Lender. Lender lends at rates above and
                   below the Prime Rate.

                   Interest will be calculated on the basis of a 360 day year
                   based on the actual number of days elapsed.

Repayment Terms:   Interest payable monthly beginning February 14, 2000.

                   Principal due on demand.

Collateral:        Certificate of Deposit issued by Wachovia Bank in the amount
                   of $424,000.

                   To the extent permitted by law, the collateral specified
                   above shall secure the Commitment and also secure any and all
                   other liabilities, obligations and indebtedness of the
                   Borrower to Lender, now existing or hereafter arising.

Financial Reports: The following information will be required:

                   Year end audited financial statements of Borrower within 90
                   days of fiscal year end prepared by a certified public
                   accounting firm acceptable to Lender.

                   Quarterly financial statements, including a balance sheet and
                   income statement, within 60 days of quarter end signed by an
                   officer or partner of Borrower attesting to their accuracy.

                   All financial statements shall be prepared in accordance with
                   generally accepted accounting principles and practices
                   applied consistently throughout the period and for prior
                   periods.

                   Additional financial information on Borrower or Guarantor as
                   requested by Lender.

Fees:              A $250.00 Commitment fee which shall be fully earned and
                   non-refundable.

Other Conditions:  This Commitment is subject to the maintenance by
                   Borrower of a condition satisfactory to Lender and the
                   delivery and/or execution of loan, security, and
                   informational documents satisfactory to Lender. Examples of
                   an unsatisfactory condition include, but are not limited to,
                   a material change in management, an adverse change in
                   financial condition, or any default by Borrower on any
                   obligation to Lender or to a third party.

                   During the term of the Commitment, there shall be no change
                   in control, ownership, or legal structure of Borrower or
                   Guarantor without the prior written consent of Lender.

<PAGE>

                   In no event shall either Borrower or Lender be liable to the
                   other for indirect, special, or consequential damages which
                   may arise out of or are in any way connected with the
                   issuance of this Commitment.

                   All costs, expenses and fees incurred to close the Commitment
                   and perfect Lender's security interest will be the
                   responsibility of the Borrower, whether or not the
                   transaction contemplated herein closes, unless the failure to
                   close is due solely to Lender's gross negligence or willful
                   misconduct.

                   In addition to any other defaults normally specified in
                   Lender's documents, to the extent permitted by law, Borrower
                   agrees that a default under this Commitment will also cause a
                   default under any other loan or obligation of the Borrower to
                   Lender and that a default under any other loan or obligation
                   of the Borrower to Lender will cause a default under this
                   Commitment.

                   All advances under the revolving line of credit will be paid
                   down to a minimum amount, of $424,000 for a minimum of thirty
                   consecutive days during the term of this Commitment.

                   The Commitment is subject to Lender serving as Borrower's
                   primary financial institution for short term working capital
                   needs. While the Borrower is utilizing Lender's short term
                   working capital line, the Borrower agrees not to
                   simultaneously utilize short term working capital lines of
                   credit provided by other financial institutions.

                   All information and representations made by the Borrower and
                   any Guarantors to Lender are and will be accurate at closing.

                   This Commitment shall be governed by the laws of the State of
                   Georgia.

                   This Commitment is for the sole and exclusive benefit of the
                   Borrower and may not be assigned by the Borrower.

                   This Commitment and all terms and provisions outlined above
                   shall survive the closing and shall be binding on the
                   Borrower after such closing.

Commitment
Modifications:     No condition or other term of this Commitment may be waived
                   or modified except in writing signed by Borrower, all
                   Guarantors, if any, and Lender.

Please call me if you have any questions about the terms of this offer. If this
Commitment is not accepted with an executed copy received by Lender by February
14, 2000 and closed by February 14, 2000, this Commitment shall be null and void
at the option of Lender. To acknowledge your acceptance, please sign below and
return to me. We look forward to working with you.

Very truly yours,

/s/ Pam Garland

Pam Garland
Vice President

Accepted and agreed to this 14 day of February, 2000.

American Consumers, Inc.

By:  /s/ Michael A. Richardson
     -------------------------
         Michael A. Richardson

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00007-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00007-of-00352.parquet"}]]