Document:

Exhibit
10.3

LOAN AGREEMENT

(Revolving
Line of Credit Loan and Term Loan)

This Loan
Agreement (the “Agreement”) is dated for reference purposes as of May 16, 2007,
between THE INVENTURE GROUP, INC., a Delaware
corporation (the “Borrower”),
and U.S. BANK NATIONAL ASSOCIATION, a
national banking association (the “Bank”), with the agreement and
acknowledgement of all other Obligated Group Parties as to the covenants,
representations, and warranties set forth herein applicable to them as part of
the Obligated Group.

Unless
defined elsewhere in this Agreement, defined terms used herein have the
meanings given them in the Definitions Section hereof.

Factual
Background

A.            Bank has agreed to extend credit and/or other
financial accommodations to Borrower as follows: (1) Bank has agreed to make a revolving line of credit loan (“Facility 1”) to Borrower in the maximum
principal amount of Fifteen Million and No/100 Dollars ($15,000,000.00) (the “Facility 1 Maximum Committed Amount”), and (2) Bank has agreed to make a term loan (“Facility 2”) to Borrower in the principal amount of Six
Million and No/100 Dollars ($6,000,000.00) (each, individually, a “Loan” and collectively, the “Loans” or the “Loan,”
as the context may require).  Borrower will use Facility 1 and Facility 2 for working
capital and general corporate purposes of Borrower, and to provide funds to
RFAC to acquire the Rader Acquisition Assets through the Rader
Acquisition.  Borrower is a holding
company for several affiliated entities, and each of the Obligated Group
Parties (other than Borrower) is an Affiliate, and a wholly owned subsidiary,
of Borrower.

B.            Borrower is executing
(1) a promissory note payable to Bank evidencing Facility 1 (the “Facility 1
Note”) and a promissory note payable to Bank evidencing Facility 2 (the “Facility
2 Note”).  Facility 1 and Facility 2 will
be secured by a Security Agreement covering all business assets of the
Obligated Group.  The Facility 1 Note and
the Facility 2 Note are herein collectively referred to as the “Notes.”  The
Credit Facilities shall be cross-collateralized and cross-defaulted, and will
also be cross-collateralized and cross-defaulted to the RE Loan (as such term
is defined below).

C.            The following parties
have each agreed to guarantee all or certain of Borrower’s obligations to Bank
in accordance with one or more Guaranties:

(1)           LA COMETA PROPERTIES, INC., an Arizona
corporation (“La Cometa”);

(2)           POORE BROTHERS - BLUFFTON, LLC, a Delaware
limited liability company (the “PBC”);

(3)           TEJAS PB DISTRIBUTING, INC., an Arizona
corporation (“Tejas”);

(4)           BOULDER NATURAL FOODS, INC., an Arizona
corporation (“Boulder”);

(5)           BN FOODS INC., a Colorado corporation (“BN
Foods”); and

(6)           RADER FARMS
ACQUISITION CORP., a Delaware corporation (“RFAC”).

Each of the Guarantors described
above is an Obligated Group Party (as such term is defined below).  It is intended (i) that each Obligated Group
Party shall be liable for the Credit Facilities, directly or indirectly, as a
Borrower or as a Guarantor, (ii) that all business assets of each Obligated
Group Party shall be pledged to Bank as collateral for the Credit Facilities,
(iii) that the financial statements and other

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information required of
Borrower under this Agreement shall be prepared on a consolidated basis to
include all Obligated Group Parties, (iv) that all covenants of Borrower shall
be covenants of the Obligated Group Parties as applicable to the appropriate
Obligated Group Party(ies), and (v) that all representations and warranties of
Borrower shall be representations and warranties of the Obligated Group Parties
as applicable to the appropriate Obligated Group Party(ies).

D.            This Agreement and
the Notes, together with all of their exhibits (if any), and all other
documents which evidence, guaranty, secure, or otherwise pertain to the Credit
Facilities, including each Loan, collectively constitute the “Loan Documents.”

THEREFORE, Bank
and Borrower agree as follows:

Agreement

Definitions:  The following capitalized words and terms
shall have the meanings set forth in the “Factual Background” section above, or
if not defined therein, shall have the following meanings when used in this
Agreement.  All references to dollar
amounts shall mean amounts in lawful money of the United States of America.  Words and terms used in the singular shall
include the plural, and the plural shall include the singular, as the context
may require.  The term “Guarantor,” as
used in this Agreement and the other Loan Documents shall apply only if any
such party exists, and should be ignored if inapplicable.

“Account” means Borrower’s checking account number
151701212137 at Bank.

“Affiliate of”
or “affiliated with” means in control of, controlled by or under common
control with.

“Agricultural
Laws” means all existing and future laws relating to perishable
agricultural commodities, including but not limited to the Food Security Act, the Perishable Agricultural Commodities Act, and
all applicable state and federal agricultural laws.

“Approved
Existing Liens” means, collectively, the liens set forth on Exhibit D attached hereto, and any
other lien on collateral for any Credit Facility approved in writing by Bank
from time to time.

“Approved  Existing
Lien Collateral” means collateral for any Credit Facility which is subject
to any Approved Existing Lien.

“BN Foods”
has the meaning set forth in Recital C
above.

“Bailee Letter”
means a letter or other written agreement executed by a third party having
possession of certain of inventory and/or farm products of any Obligated Group
Party that serves as collateral for any Credit Facility, which letter or
agreement provides that such party (a) acknowledges the Bank’s paramount lien
on, and security interest in, such collateral, and (b) gives Bank the right to
remove such collateral from such party’s premises in exercise of Bank’s rights
and remedies under the Loan Documents. 
Any Bailee Letter must be is in form and substance acceptable to Bank.

“Boulder”
has the meaning set forth in Recital C
above.

“Borrowing Base”
means an amount equal to:

(a)           the sum of (i) eighty percent (80%) of Net Eligible
Accounts, plus (ii) fifty percent
(50%) of the applicable
Obligated Group Party’s(ies’), cost (determined on a lower of cost or
market basis or on such other basis as may be designated by Bank from time to
time) of Eligible Raw Material Inventory, as such cost may be diminished as a
result of any event causing loss or depreciation in value of Eligible Raw
Material Inventory, plus (iii) sixty
percent (60%) of the
applicable Obligated Group Party’s(ies’) cost

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(determined on a lower of
cost or market basis or on such other basis as may be designated by Bank from
time to time) of Eligible Finished Goods Inventory, as such cost may be
diminished as a result of any event causing loss or depreciation in value of
Eligible Finished Goods Inventory, plus (iv) sixty-five percent (65%) of the RFAC’s cost (determined on a lower of cost or market basis or
on such other basis as may be designated by Bank from time to time) of RFAC
Eligible Inventory, as such cost may be diminished as a result of any event
causing loss or depreciation in value of RFAC Eligible Inventory, plus
(v) only during the period from the Closing Date through May 15, 2008, the amount of Two Million
and No/100 Dollars ($2,000,000.00); provided, however, that in no
event shall total Eligible Inventory exceed fifty
percent (50%) of the Borrowing Base, less

(b)           undrawn amounts of
outstanding letters of credit issued by Bank or any Affiliate thereof.

“Borrowing Base Certificate” has the meaning set forth in Section 3.5 below.

“Change in Control” means any transaction or series of
transactions that result in any transfer, direct or indirect, of fifty percent
(50%) or more of the voting power of Borrower or any Guarantor, or other power to
direct or cause the direction of the management and policies of Borrower or any Guarantor, as the case may be,
or fifty percent (50%) or more of the direct or indirect beneficial ownership
of Borrower  or any Guarantor, as the
case may be.

“Closing Date”
means the date of the closing of the Credit Facilities, which shall be the date
when all Loan Documents have been fully executed by all parties thereto and all
other conditions to closing set forth in this Agreement and any other Loan
Documents have been satisfied or waived or deferred in writing by Bank.

“Collateral”
means, collectively, all personal property business assets of the Obligated
Group now or
hereafter assigned, pledged, or hypothecated to Lender as collateral
security for the Loans

“Commitment Reduction” has the meaning set forth in Section 2.2 below.

“Commitment Reduction Date” has the meaning set forth in Section 2.2 below.

“Commitment Reduction Notice” has the meaning set forth in
Section 2.2 below.

“Compliance Certificate” has the meaning set forth in Section 3.5 below.

“Contra Accounts
Payable” means the aggregate
amounts payable to account debtors holding Eligible Accounts.

“Covered by
Insurance” is when defense of a lawsuit has been tendered to the applicable
insurance carrier under a valid insurance policy that provides coverage with
respect to the claim and has a deductible amount of less than Two Hundred Fifty
Thousand and No/100 Dollars ($250,000.00), such insurance carrier has accepted
such tender of defense, and such insurance carrier proceeds with such defense
without denying liability for any part of such claim which could result in
liability of Two Hundred Fifty Thousand and No/100 Dollars ($250,000.00) or
more to Borrower or any Guarantor.

“Credit
Facilities” means all extensions of credit from the Bank to Borrower
or any other Obligated Group Party, whether now existing or hereafter arising,
including but not limited to the Loans described in Recital A
above.

“Default Rate”
has the meaning given it in the applicable Note or other debt instrument
evidencing the particular Credit Facility; provided, however,
that if a default rate is not used or defined in the applicable Note or other
debt instrument evidencing the particular Credit Facility, “Default Rate” shall
mean a per

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annum interest
rate of five percent (5%) in excess of the rate of interest charged from time
to time (the “Note Rate”) under the applicable Note or other debt instrument
evidencing the particular Credit Facility.

“EBITDA” means,
for the Obligated Group for the applicable period, net income, plus interest
expense, plus income tax expense, plus depreciation expense, plus
amortization expense.

“EBITDAR”
means, for the Obligated Group for the applicable period, net income, plus interest expense, plus income tax expense, plus depreciation expense, plus amortization expense, plus rent or lease expense.

“EDGAR System”
means the Electronic Data Gathering Analysis and Retrieval System owned and
operated by the United States Securities and Exchange Commission or any
replacement system.

“Eligible
Account” shall mean an account owing to any Obligated Group Party which
meets all of the following requirements at the time it comes into existence and
continues to meet the same until it is collected in full:

(i)             Sale of Goods or Services Rendered.  It
arose from the performance of services by such Obligated Group Party, or from a
bona fide sale or lease of goods on terms in effect as of the date of the
Agreement as disclosed by such Obligated Group Party to Bank; which services
have been fully performed for or which goods have been delivered or shipped to
an account debtor residing in the United States or a foreign account debtor
acceptable to Bank and supported by a letter of credit acceptable to Bank; and
for which such Obligated Group Party has genuine and complete invoices,
shipping documents or receipts.

(ii)            Age and Due Date.  It
is payable within ninety (90) days of the date of invoice, and in each instance
is not more than sixty (60) days past due.

(iii)           Ownership.  It is owned and assignable by
such Obligated Group Party free of all claims, encumbrances and security
interests (except Bank’s paramount security interest).

(iv)          No Defenses; Exclusions.  It
is enforceable by such Obligated Group Party and Bank against the account
debtor for the amount shown as owing in the statements furnished by Borrower to
Bank; it and the transaction out of which it arose comply with all applicable
laws and regulations; it is not subject to any setoff, retainage, contra,
counterclaim, credit allowance or adjustment except discount for prompt
payment, nor has the account debtor returned the goods or disputed liability;
it does not include any service charges; and it did not arise from a
conditional sale, guaranteed sale, sale on approval, cash sale, cash on
delivery (“COD”) sale, sale or return or sale on consignment; and it is
otherwise deemed satisfactory to Bank in its sole discretion.

(v)           Financial Condition of Account Debtor. 
Neither the Obligated Group Party nor Bank has any notice or knowledge
of anything which might impair the credit standing of the account debtor or the
prospect of payment of the account, and the account debtor is otherwise deemed
satisfactory to Bank in its sole discretion.

(vi)          Affiliates.  It is not due from an affiliate
of such Obligated Group Party, including, without limitation, (a) a parent
entity; (b) a subsidiary entity; (c) an entity controlled by any controlling
owner of Borrower; or (d) any officer, director, shareholder, employee, agent,
partner, manager, member or owner of Borrower or of any Affiliate.

(vii)         Government Receivables.  The
account debtor is not the United States or any agency or department thereof.

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(viii)        Foreign Receivables.  The
account debtor is outside of the United States, unless supported by foreign
credit insurance in form and amount acceptable to Bank in its sole discretion.

(ix)           Receivables Concentration.  “Eligible
Accounts” shall not include that portion of the account(s) due from any single
account debtor, other than Costco or Walmart/Sam’s Club, which exceeds five
percent (5%) of such Obligated Group Party’s aggregate accounts.

(x)            Cross-Age.  If the dollar amount of accounts
of an account debtor, other than Costco or Walmart/Sam’s Club, which are not
Eligible Accounts under subparagraph (ii) above exceeds ten percent (10%) of
the total dollar amount due from such account debtor (which percentage
limitation may change from time to time at Bank’s discretion), all of such
account debtor’s accounts shall be excluded from Eligible Accounts.

“Eligible
Finished Goods Inventory” means, collectively, the value of each Obligated Group Party’s, excepting RFAC’s,
finished goods inventory so long as it
meets the following conditions:

(i)             Ownership.  It is owned and assignable by
such Obligated Group Party free
of any title defects or all claims,
encumbrances and security interests (except Bank’s paramount security
interest).

(ii)            Location.  It is permanently located
at locations within the United States which such Obligated Group Party has disclosed to the Bank and which are
acceptable to the Bank.  If the inventory
is covered by a negotiable document of title (such as a warehouse receipt) that
document must be delivered to the Bank, and if the inventory is located at any
location not owned or leased by any of the Obligated Group Parties, then Bank
shall have received a Bailee’s Letter for such inventory.

(iii)           Held for Sale; Quality.  It
is held for sale or use in the ordinary course of such Obligated Group Party business and is of good and
merchantable quality.  Inventory which is
obsolete, unsalable, damaged, defective, discontinued, in-transit, slow-moving
or which has been returned by the buyer, is not includable as part of Eligible Finished Goods Inventory.  Display items, work-in-process and packing
and shipping materials are not includable as part of Eligible Finished Goods Inventory.

(iv)          Not on Consignment.  It
is not placed on consignment.

(v)           Acceptable to Bank as Collateral.  It
is otherwise acceptable to the Bank in Bank’s reasonable discretion.

(vi)          No Grower’s Liens.  It
is not subject to any Grower’s Lien, unless Bank has received a lien waiver or
subordination agreement, in form and substance acceptable to Bank, waiving such
Grower’s Lien or fully subordinating such Grower’s Lien to Bank’s paramount
security interest.

“Eligible Inventory” means, collectively, all
Eligible Raw Materials Inventory, all Eligible Finished Goods Inventory, and
all RFAC Eligible Inventory.

“Eligible
Raw Materials Inventory” means, collectively, the value of each Obligated Group Party’s, excepting RFAC’s, raw materials inventory so long as it meets the following conditions:

(i)             Ownership.  It is owned and assignable by
such Obligated Group Party free of any title defects or all claims, encumbrances and security
interests (except Bank’s paramount security interest).

(ii)            Location.  It is located at
locations which such Obligated Group
Party has disclosed to the Bank and which are acceptable to the
Bank.  If the inventory is covered by a
negotiable document of title (such as a warehouse receipt) that document must
be delivered to the Bank, and if the inventory is

 5
 

located at any location
not owned or leased by any of the Obligated Group Parties, then Bank shall have
received a Bailee’s Letter for such inventory.

(iii)           Held for Sale; Quality.  It
is held for use by such Obligated Group
Party in manufacturing or creating Eligible Finished Goods Inventory, or
for sale to third parties as raw materials, in the ordinary course of such Obligated Group Party’s business
and is of good and merchantable quality. 
Inventory which is obsolete, unsalable, damaged, defective, or
discontinued, is not includable as part of Eligible Raw Materials Inventory. 
Display items, work-in-process and packing and shipping materials are
not includable as part of Eligible Raw
Materials Inventory.

(iv)          Not on Consignment.  It
is not placed on consignment.

(v)           Acceptable to Bank as Collateral.  It
is otherwise acceptable to the Bank in Bank’s reasonable discretion.

(vi)          No Grower’s Liens.  It
is not subject to any Grower’s Lien, unless Bank has received a lien waiver or
subordination agreement letter, in form and substance acceptable to Bank,
waiving such Grower’s Lien or fully subordinating such Grower’s Lien to Bank’s
paramount security interest.

“Events of
Default” means those events of default set forth in Section
6.1 (each, an “Event of Default”).

“Facility 1”
has the meaning set forth in Recital A
above.

“Facility 1 Expiration Date” has the meaning set forth in Section 2.2 below.

“Facility 1
Maturity Date” has the meaning set forth in Section
2.2 below.

“Facility 1
Maximum Committed Amount” has the meaning set forth in Recital A
above.

“Facility 1
Maximum Funding Amount” means Ten Million and No/100 Dollars
($10,000,000.00).

“Facility 1
Note” has the meaning set forth in Recital B
above.

“Facility 2”
has the meaning set forth in Recital A
above.

“Facility 2
Maturity Date” has the meaning set forth in Section
2.3 below.

“Facility 2
Note” has the meaning set forth in Recital B
above.

“Facility Fee” has the meaning set forth in Section 2.6 below.

“Fee and Rate
Schedule” means the tiered fee and rate
schedule attached hereto as Exhibit C.

“Fixed Charge
Coverage Ratio” means, for the Obligated Group for the applicable period,
(a) EBITDAR minus cash taxes, cash dividends, and Maintenance Capital
Expenditures, divided by (b) the sum of all required principal payments
(on short and long term debt and capital leases), interest and rental or lease
expense.

“GAAP” means generally
accepted accounting principles, consistently applied.

“Grower Lien”
any lien on any collateral for any Credit Facility pursuant to PACA or any
other Agricultural Law.

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“Ground Lease”
means that certain ground lease by and among Lyle Rader, Sue Rader, Brad Rader
and Julie Newell (formerly known as Julie Rader) and RFAC dated as of May 17,
2007.

“Guarantor” means, each person or entity guaranteeing all
or any portion of Borrower’s obligations under the Loan Documents, or all or
any portion of any other party’s obligations under the Loan Documents, pursuant
to a Guaranty, including those parties described in Recital C
above (collectively, the “Guarantor” or “Guarantors”).  “Guarantor” also means any indemnitor under
any indemnity agreement.

“Guaranty”
means, each guaranty executed or required to be executed in favor of Bank in
connection with any of the Credit Facilities, including each continuing
guaranty, payment guaranty, payment and performance guaranty, or other guaranty
or indemnity agreement (collectively, the “Guaranty” or “Guaranties”).

“Home Page” means
Borrower’s corporate home page on the World Wide Web accessible through the
Internet via the universal resource locator (URL) identified as “www.inventuregroup.net”
or such other universal resource locator that Borrower shall designate in
writing to Bank as its corporate home page on the World Wide Web.

“Hazardous
Substance” means and includes any substance, material, or waste, including
asbestos, petroleum, and petroleum products (including crude oil), that is or
becomes designated, classified, or regulated as “toxic” or “hazardous” or a “pollutant,”
or that is or becomes similarly designated, classified, or regulated, under any
federal, state, or local law, regulation, or ordinance, but does not include
any such substance that is a customary and ordinary household, cleaning, or
office product used by Borrower or any tenant or agent of Borrower, provided
such use is in accordance with applicable hazardous materials laws and
regulations..

“Indemnified
Costs” means all actual or threatened liabilities, claims, actions, causes
of action, judgments, orders, damages (including foreseeable and unforeseeable
consequential damages), costs, expenses, fines, penalties and losses (including
sums paid in settlement of claims and all consultant, expert and legal fees and
expenses of Bank’s counsel), including those incurred in connection with any
investigation of site conditions or any clean-up, remedial, removal or
restoration work (with respect to any property), or any resulting damages,
harm, or injuries to the person or property of any third parties or to any
natural resources, excepting those arising out of, or resulting, solely from
the applicable Indemnified Party’s gross negligence or willful misconduct.

“Indemnified
Parties,” means Bank, its parent, subsidiary, and any affiliated companies,
any assignees of any of Bank’s interest in any of the Credit Facilities or the
Loan Documents, any owners of participation or other interests in any of the
Credit Facilities or the Loan Documents, and the officers, directors,
employees, and agents of each of them (each individually, an “Indemnified Party”).

“Initial Minimum TNW Amount” means Fourteen Million Seven
Hundred Fifty Thousand and No/100 Dollars ($14,750,000.00).

“Insolvency Payments” means all monetary obligations incurred or
accrued during the pendency of any Insolvency Proceeding regardless of whether
allowed or allowable in such proceeding.

“Insolvency
Proceeding” means any bankruptcy, receivership, or other voluntary or
involuntary proceeding, in or out of court, for the adjustment of debtor-creditor
relationships.

“La Cometa”
has the meaning set forth in Recital C
above.

“Leverage Ratio”
means, for the Obligated Group, the relationship, expressed as a numerical
ratio, between:  (a) Total Funded Debt of
the Obligated Group, and (b)
EBITDA of the Obligated Group on
a

 7
 

rolling four (4)
quarter basis, calculated at the end of each fiscal quarter, using the results
of that fiscal quarter and each of the three (3) immediately preceding fiscal
quarters.

“Loan” and “Loans”
have the meanings set forth in Recital A
above.

“Loan Documents”
has the meaning set forth in Recital D
above.

“Maintenance Capital
Expenditures” means One Million Five Hundred Thousand and No/100 Dollars
($1,500,000.00).

“Minimum TNW Amount”
means, initially, the Initial Minimum TNW Amount; provided, however,
that Bank shall have the right to increase or decrease this Initial Minimum TNW
Amount as determined by Bank based upon the post-Rader Acquisition consolidated
balance sheet of Borrower that Borrower is required to promptly deliver to
Bank; provided further, however, that the Minimum TNW Amount
shall be increased annually, as of the end of each fiscal year of Borrower, by
an amount equal to fifty percent (50%) of Borrower’s consolidated positive net
income in accordance with GAAP.

“Net
Eligible Accounts” means the sum of (a) all Eligible Accounts, less (b) all Royalties Payable, less (c) all Contra Accounts
Payable.

“New Facility 1
Maximum Committed Amount” has the meaning set forth in Section
2.2 below.

“Notes” means all
promissory notes, instruments, reimbursement agreements, or other contracts or
agreements evidencing the terms and conditions of the Obligations, including
the Facility 1 Note and the Facility 2 Note.

“Obligations” or “obligations”
means all obligations,  indebtedness, and liabilities of
Borrower to Bank, or any of
Bank’s Affiliates, successors or assigns, of
every kind and nature, including but not limited to all loans, advances,
drafts, overdrafts, checks, promissory notes, and all other debts, liabilities,
and obligations of every kind owning by Borrower to Bank, whether direct or
indirect, voluntary or involuntary, due or not due, absolute or contingent,
liquidated or unliquidated, of the same or a different nature, whether now
existing or hereafter incurred or created, or whether incurred directly or
acquired by Bank by assignment or otherwise, including interest thereon and all
costs, expenses, and reasonable attorney’s fees (including the fees of in-house
counsel) paid or incurred by Bank at any time before or after judgment in
attempting to collect any of the foregoing, to realize on any collateral
securing any of the foregoing, to realize on any guaranty or indemnity executed
in connection with the foregoing, and to enforce this Agreement.  The “Obligations” specifically include, but
are not limited to, all indebtedness
of Borrower to Bank under the Credit
Facilities, and all advances made by Bank to or for the benefit of Borrower
thereunder, and Surrendered Payments.  In
the event that Bank makes any Surrendered Payment, including pursuant to a
negotiated settlement, the Surrendered Payments shall immediately and
automatically without any further action required on behalf of Bank or any
other party, be reinstated as Obligations, regardless of whether this Agreement
has been terminated, cancelled, or released pursuant to its terms or otherwise
and regardless of whether Bank has surrendered, terminated, cancelled, or
released this Agreement prior to returning any Surrendered Payments.  Unless Borrower shall have otherwise agreed
in writing, for the purposes of this Agreement, “Obligations” shall not include
“consumer credit” subject to the disclosure requirements of the Federal Truth
in Lending Act or any regulations promulgated thereunder.

“Obligated Group”
and “Obligated Group Parties” shall mean, collectively, (a) Borrower,
(b) La Cometa, (c) PBC, (d) Tejas, (e) Boulder, (f) BN Foods, and (g) RFAC
(each, individually, an “Obligated Group Party”).

“PACA”
means the Perishable Agricultural
Commodities Act, as such may be amended, recodified, and in effect from
time to time.

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“Patriot Act” has the meaning set forth in Section 8.22 below.

“Payment” and “Payments”
have the meaning set forth in Section 2.7
below.

“PBC” has
the meaning set forth in Recital C
above

“Plan” has the
meaning set forth in Section 4.10
below.

“Rader Acquisition”
means the acquisition by RFAC and/or the other Obligated Group Parties, of all
or a portion of the assets of RADER FARMS,
INC., which acquisition is being financed in part with the proceeds
of the Credit Facilities.

“Rader Acquisition
Assets” means all business assets of RADER
FARMS, INC. being acquired by RFAC and/or the other Obligated Group
Parties as part of the Rader Acquisition.

“RE Deed of Trust”
means that certain Leasehold Deed of Trust, with Assignment of Rents,
Security Agreement, and Fixture Filing, executed by RFAC, as Trustor, for the
benefit of Bank, as Beneficiary granting a first-
priority lien on Lessee’s Rights under the Ground Lease, subject
only to such title exceptions as are approved by Bank, which (a) secures the RE
Loan Agreement and all obligations of Borrower in connection with the RE Loan,
and (b) also secures all obligations of Borrower in connection with the Loans.

“RE Loan” means
that certain loan anticipated to be made by Bank to Borrower, in the approximate amount of Four Million and
No/100 Dollars ($4,000,000.00) pursuant to the RE Loan Agreement.  The
Loans and the RE Loan shall be cross-collateralized and cross-defaulted.

“RE Loan Agreement”
means that certain loan agreement between Borrower and Bank evidencing the RE
Loan, which shall be in form and substance acceptable to Bank.

“RE Loan Closing Date”
means the date of recordation of the RE Deed of Trust or such earlier date when
any RE Loan proceeds as funded by Bank to Borrower or for Borrower’s benefit.

“RE Loan Documents”  means all documents which evidence, guarantee, secure, or otherwise pertain to
the RE Loan, including but not
limited to the RE Loan Agreement, the RE Deed of Trust, and any other security instrument or agreement
securing the RE Loan.

“Request for
Credit” means a written request signed by Borrower requesting a
disbursement of funds under this Agreement (or a telephonic, telefax, or
electronic mail request as allowed pursuant to the terms of this Agreement),
together with such documentation and information as Bank may require and
meeting the requirements set forth in this Agreement and the other Loan
Documents.

“Requirements”
means all existing and future laws, regulations, orders, codes, restrictions,
and requirements of, and all permits and approvals from, and agreements with
and commitments to, all governmental, judicial, or legal authorities having
jurisdiction over Borrower’s and/or any other Obligated Group Party’s business.

“RFAC” has
the meaning set forth in Recital C
above

“RFAC Eligible
Inventory”  means, collectively, the value of RFAC’s inventory so long as it meets the following conditions:

(i)             Ownership.  It is owned and assignable by
RFAC free of any title defects or
all claims, encumbrances and security interests (except Bank’s paramount
security interest).

 9
 

(ii)            Location.  It is permanently located
at locations which RFAC has
disclosed to the Bank and which are acceptable to the Bank.  If the inventory is covered by a negotiable
document of title (such as a warehouse receipt) that document must be delivered
to the Bank, and if the inventory is located at any location not owned or
leased by any of the Obligated Group Parties, then Bank shall have received a
Bailee’s Letter for such inventory.

(iii)           Held for Sale; Quality.  It
is held for sale or use in the ordinary course of RFAC’s business and is of good and merchantable quality.  Inventory which is obsolete, unsalable,
damaged, defective, discontinued, in-transit, or slow-moving or which has been
returned by the buyer, is not includable as part of RFAC Eligible Inventory.  Display items, work-in-process and packing
and shipping materials are not includable as part of RFAC Eligible Inventory.

(iv)          Not on Consignment.  It
is not placed on consignment.

(v)           Acceptable to Bank as Collateral.  It
is otherwise acceptable to the Bank in Bank’s reasonable discretion.

(vi)          No Grower’s Liens.  It
is not subject to any Grower’s Lien, unless Bank has received a lien waiver or
subordination agreement letter, in form and substance acceptable to Bank,
waiving such Grower’s Lien or fully subordinating such Grower’s Lien to Bank’s
paramount security interest.

“Royalties Payable”
means, the aggregate of all accrued and unpaid royalties payable of the
Obligated Group as show on Borrower’s consolidated balance sheet.

“Security
Agreement” means any pledge, assignment, or grant of a security interest in
favor of Bank of all or any portion of the
Obligated Group’s assets, including the assignment and security interest
created in favor of Bank pursuant to that certain Security Agreement (Blanket - All Business Assets) being
executed by each Obligated Group Party in favor of Bank dated of even date
herewith.  Each Security Agreement shall
be in form and substance acceptable to Bank.

“Subject Party” means, for any and all financial
covenants set for this Agreement, the subject party (i.e., Borrower, Guarantor,
Obligated Group, or other applicable party) or each subject party, as the
context may require, with respect the particular covenant.  For any Subject Party who does not have a
separate fiscal year end for tax reporting purposes, the fiscal year will be
deemed to be the calendar year.

“Surrendered
Payments” means, collectively, the
amount of any payments made to Bank or any other party on behalf of Borrower or
any other Obligated Group Party (including payments resulting from liquidation
of collateral) which are recovered from the Bank by a trustee, receiver,
creditor, or other party pursuant to applicable federal or state law.

“Swap Contract”
means, individually and collectively, as the context may require, any rate lock agreement or interest rate
protection agreement, such as any rate lock agreement, interest rate swap
agreement, the International Swaps and Derivatives Association, Inc. Master
Agreement, or similar agreement or arrangements now existing or hereafter
entered into by Borrower and/or any other
Obligated Group Party and Bank in connection with one or more of the
Credit Facilities, to hedge the risk of variable rate interest volatility or
fluctuations in interest rates, as any such agreement or arrangement may be
modified, supplemented and in effect from time to time.

“Swap Payments”
has the meaning set forth in Section 5.1.

“Tangible
Net Worth” means (1) the total of all assets properly appearing on the
consolidated balance sheet of Borrower (i.e. of the Obligated Group) in
accordance with GAAP, less (2) the sum of (i) the book amount of all
such assets which would be treated as intangibles under GAAP, including,
without

 10
 

limitation, all
such items as goodwill, trademarks, trademark rights, trade names, trade name
rights, brands, copyrights, patents, patent rights, licenses, deferred charges
and unamortized debt discount and expenses, (ii) any write-up in the book value
of any such assets resulting from a revaluation thereof subsequent to the date
of the Agreement, (iii) all reserves which have not already been deducted in
calculating total assets on Borrower’s consolidated balance sheet, including
reserves for depreciation, depletion, insurance, and inventory valuation, but
not including contingency reserves not allocated for any particular purpose
and not deducted from assets, (iv) the amount, if any, at which any shares of
stock of Borrower or any other Obligated Group Party appear on the asset side
of such balance sheet, (v) all liabilities of Borrower or any other Obligated
Group Party shown on such balance sheet, (vi) all investments in foreign
affiliates and non-consolidated domestic affiliates, and (vii) all accounts or
notes due to Borrower or any other Obligated Group Party from any shareholder,
director, officer, employee or affiliate of Borrower or any other Obligated
Group Party or from any relative of such party.

“Tejas” has the
meaning set forth in Recital C
above.

“Total Funded Debt”
means, for the Obligated Group for the applicable period, the sum of (a)
outstanding borrowings under the Credit Facilities and the Real Estate Loan, plus (b) the face amount of issued
and outstanding letters of credit, plus (c)
the aggregate outstanding principal balance of all other indebtedness for
borrowed money, including capital lease obligations, plus
(d) the aggregate of all guaranties executed by Borrower or any other Obligated
Group Party.

“Unmatured
Event of Default” means an event that, with notice or the passage of time,
or both, could become an Event of Default.

“Unused Commitment Fee” has the meaning set forth in Section 2.2.

1.             Conditions
Precedent to Closing and Disbursements.

1.1          Conditions to Closing.  Before Bank becomes obligated to close the
Loans herein contemplated or make any disbursement under this Agreement, the
following closing conditions shall have been satisfied at Borrower’s sole cost
and expense in a manner acceptable to Bank in its sole and absolute discretion.
No waiver of any closing condition is effective unless expressly made in
writing by Bank.

(a)           Financial Statements
of Borrower and Other Financial Information; Pro Forma Financial Statements and
Information.

(i)            Borrower
shall have delivered to Bank all financial statements and other financial
information currently required under the Loan Documents, certified as being
true, correct, and complete in all material respects by an authorized officer
of Borrower or other applicable parties. 
All such financial information shall be prepared on a consolidated basis
with the other Obligated Group Parties.

(ii)           Borrower
shall deliver to Bank (1) pro forma financial statements giving effect to the
Rader Acquisition, which demonstrate, in the Bank’s reasonable judgment,
together with all other information then available to the Bank, that each
Obligated Group Party can repay its debts and satisfy its other obligations as
and when they become due, and can comply with the financial covenants contained
in this Agreement, (2) such information as the Bank may reasonably request to
confirm the tax, legal, and business assumptions made in such pro forma
financial statements, (3) filed form 10-K financial statements for the fiscal
period ended December 30, 2006, and (4) audited financial statements for RADER FARMS, INC. for its prior two (2)
fiscal years.

 11
 

(b)           Organizational
Documents and Certificates.  Borrower
shall have delivered to Bank, for each party to each of the Loan Documents:

(i)            All
organization documents and evidence of due formation and good standing
requested by Bank in its sole and absolute discretion.

(ii)           All
resolutions, certificates of authority, incumbency certificates, or other
evidence of authorization requested by Bank in its sole and absolute
discretion.

(iii)          Evidence of such party’s Federal Tax
Identification Number.

(iv)          An
Article 9 Certificate in form and substance acceptable to Bank.

(c)           Loan Documents and
Other Items.  Borrower shall have
duly executed or obtained the due execution of, and delivered to Bank, all Loan
Documents and other items required by Bank to be executed in connection with
the Loans, including but not limited to this Agreement, the Note, the Security
Agreement required hereunder, UCC-1 financing statements, and any and all other
such documentation otherwise required by Bank to fulfill the purposes of this
Agreement.

(d)           Security Interests
Perfected.  Bank’s security interest
in all property pledged as collateral security for the Loans, as described in
one or more Security Agreements executed by Borrower, and/or any third party
pledgor, in favor of Bank, shall have been duly perfected in a first-priority lien position, except
for the Approved Existing Lien Collateral, wherein Bank’s security interest
shall have been duly perfected in a second-priority
lien position subject only to the applicable Approved Existing Liens.

(e)           Insurance.  Borrower shall have provided evidence that
there is in effect all insurance required by Bank pursuant to this Agreement
and the other Loan Documents, written by insurers, and in form and in amount
satisfactory to Bank in its sole and absolute discretion.

(f)            Accounts Opened.  Borrower shall have opened all accounts
required pursuant to the Loan Documents, if any.

(g)           Fees.  Borrower shall have paid to Bank, in
immediately available funds, all fees and costs called for under this Agreement
or by any Loan commitment letter, including but not limited to the Facility
Fee.

(h)           No Default.  No event shall have
occurred and be continuing which would constitute a default or Event of Default
(as defined in the applicable document) or an Unmatured Event of Default under
any of the Loan Documents.

(i)            No Material Adverse Change.  Bank
shall have received evidence acceptable to Bank, including the financial and
other information described in Section
1.1(a) above, and shall have determined that (i) there
has been no material adverse change in the financial condition of Borrower
and/or any other Obligated Group Party since the most current financial
statements and other financial information given to Bank by Borrower, except as
disclosed in writing to Bank and found acceptable to Bank in its sole and
absolute discretion, and (ii) the Rader Acquisition will not cause a material adverse
change in the financial condition of Borrower and/or any other Obligated Group
Party.

(j)            No Litigation.  Bank shall have received
evidence acceptable to Bank, and shall have determined, that no litigation or
other action, proceedings, or investigation is pending against Borrower
or any other Obligated Group Party, except for those previously disclosed by
Borrower to Bank in writing, and Bank shall have determined that no such litigation or other action, proceedings,
or

 12
 

investigation exists that
could result in a material adverse change in Borrower’s or and/or any other
Obligated Group Party’s financial condition, operations, or ability to timely
perform any of their respective obligations under the Loan Documents.

(k)           Third Party Consents.  Bank shall have received, reviewed and
approved evidence acceptable to Bank that all third party consents and
approvals have been obtained to allow Borrower and/or any other Obligated Group
Party, as the case may be, to complete the Rader Acquisition, close the Loans
and perform under the Loan Documents, and close the RE Loan and perform under
the RE Loan Documents when such are fully executed.

(l)            Opinion Letters.  Borrower has delivered to Bank a favorable
opinion from independent counsel, opining to such matters as Bank may require,
in form and substance satisfactory to Bank in its sole and absolute discretion,
by counsel acceptable to Bank for Borrower and/or any other parties to the Loan
Documents.

(m)          Rader
Acquisition.  Bank has received
evidence acceptable to Bank in its sole and absolute discretion that the Rader
Acquisition has closed and all Rader Acquisition Assets have been acquired by
and transferred to RFAC free and clear of liens and encumbrances other than the
Approved Existing Liens, and that the Ground Lease has been acquired by and
transferred to RFAC free and clear of liens and encumbrances other than those
approved by Bank.

(n)           Miscellaneous.  Borrower shall have delivered to Bank any
other item reasonably deemed necessary by Bank and shall have fulfilled any
other condition reasonably required by Bank to fulfill the intention of this
Agreement and any Loan commitment issued to Borrower.

1.2          Conditions to Each
Disbursement.  Before Bank becomes obligated to make
any disbursement of funds or to extend any credit or make any financial
accommodation under this Agreement, the following conditions shall have been
satisfied at Borrower’s sole cost and expense in a manner acceptable to Bank in
its sole and absolute discretion.  No
waiver of any condition is effective unless expressly made in writing by Bank.

(a)           Closing Conditions.  All closing conditions set forth above shall
have been satisfied, and shall be and remain satisfied as of the date of any
disbursement of funds or extension any credit, or shall have been waived or
deferred by Bank in its sole and absolute discretion. 

(b)           Request for Credit.  For each disbursement or extension of credit
under this Agreement, Bank shall have received a complete and accurate Request for Credit from Borrower as described
below, and Bank shall have determined that all conditions contained in this
Agreement to the disbursement set forth in the Request for Credit have been met.

(c)           Representations.  All representations and warranties of
Borrower and the other Obligated Group Parties under this Agreement and the
other Loan Documents shall be true and correct in all material respects on and
as of the date of any disbursement of funds or extension any credit.

(d)           Closing of Real
Estate Loan Prior to Disbursements in Excess of Maximum Funding Amount.  Prior to any advance of Loan funds under
Facility 1 in excess of the Facility 1 Maximum Funding Amount, the RE
Loan shall have closed, the RE Deed of Trust shall have been recorded in the
applicable public records, and all conditions to closing and disbursement set
forth in the RE Loan Documents shall have been satisfied by Borrower or any
other applicable Obligated Group Party (or waived in writing by Bank) as
determined by Bank in its sole and absolute discretion.

 13
 

2.             Credit Facilities.

2.1          Scope.  The
agreement governs Facility 1 and Facility 2, and covers other Credit
Facilities, unless otherwise agreed to in writing by Bank and Borrower or
prohibited by applicable law.  If Bank
and Borrower have entered into, or in the future enter into, a separate
agreement regarding any Credit Facility other than Facility 1 and Facility 2,
in the event of a conflict between the terms of this Agreement and the terms of
the other separate written loan agreement or other agreement as to such Credit
Facility, the terms of that separate agreement as to such Credit Facility shall
control.

2.2          Facility 1 - Revolving Line of Credit Loan.

(a)           Revolving Line of Credit.  Facility 1
is a revolving line of credit with a within line facility for letters of
credit. 
During the availability period, Borrower may repay principal amounts and
reborrow them.  Borrower agrees
not to permit the outstanding principal balance of Facility 1 plus the outstanding amounts of any letters of credit,
including amounts drawn on letters of credit and not yet reimbursed, to exceed
the Facility 1 Maximum Committed Amount, as such may be reduced pursuant to Section 2.2(h) below.  If Borrower exceeds this limit, Borrower will
immediately pay the excess to Bank upon Bank’s demand.  Bank may apply payments received from
Borrower under this Section to the obligations of Borrower to Bank in the order
and the manner as Bank, in its discretion, may determine.

(b)           Availability; Borrowing
Base.  Availability
under the Facility 1 line of credit will be governed by a borrowing base formula, and is available
between the date of this Agreement and June
30, 2011  (the “Facility 1
Expiration Date”) unless Borrower is in default.  The outstanding principal balance of Facility 1 plus the outstanding amounts of
any letters of credit, including amounts drawn on letters of credit and not yet
reimbursed under
Facility 1, shall not exceed the Borrowing Base.  Borrower will provide Bank with
information regarding the Borrowing Base in such form and at such times as Bank
may request.

(c)           Maturity Date.  The
maturity date of Facility 1 is June 30, 2011  (the
“Facility 1 Maturity Date”).  All sums
owing under Facility 1 shall be due and payable no later than the Facility 1 Maturity Date.

(d)           Facility 1 Interest Rate and Repayment Terms.  All advances under Facility 1 shall bear interest at the interest rate set forth in
the Facility 1 Note.  The
Borrower shall repay Facility 1 pursuant to the terms of the Facility 1 Note.

(e)           Facility 1 Maximum Funding Amount Limitation.  Notwithstanding anything herein to the
contrary, Lender shall not be obligated to make any advance of Loan funds under
Facility 1 in excess of the Facility 1 Maximum Funding Amount unless and
until the RE Loan has closed, the RE Deed of Trust has been recorded in the
applicable public records, and all conditions to closing and disbursement set
forth in the RE Loan Documents have been satisfied by RFAC and/or the other
applicable Obligated Group Parties (or waived in writing by Bank) as determined
by Bank in its sole and absolute discretion.

(f)            Unused
Commitment Fee.  Borrower shall pay to Bank an unused
commitment fee (the “Unused Commitment Fee”) on the average daily unused
portion of Facility 1 (i) for the calendar quarters ending June, 30, 2007, September 30, 2007, December 31, 2007, March 31, 2008, and June, 30, 2008, at the rate of
fifteen-hundredths of one percent (0.15%) (15 basis points) per annum, and (ii)
for each calendar quarter thereafter, at the tiered rate determined in
accordance with Fee and Rate Schedule attached hereto as Exhibit C, such fee calculated
quarterly and payable in arrears by Borrower, in immediately available funds,
within fifteen (15) days after the end of each calendar quarter for which the
fee is owing.

 14
 

(g)           Voluntary
Commitment Reductions.  Borrower may elect to voluntarily permanently
reduce the Facility 1 Maximum Committed Amount and the remaining available line of credit (each, a
“Commitment Reduction”) from time to time so long as all of the following
conditions are satisfied as determined by
Bank in its sole and absolute discretion, unless otherwise waived in writing by
Bank:

(i)            Notice of Election to Reduce Commitment.  Borrower
shall deliver to Bank, at least ten (10) days prior to the requested effective
date of such Commitment Reduction (the “Commitment Reduction Date”), a written
notice of Borrower’s election to make the Commitment Reduction (a “Commitment
Reduction Notice”) in form and substance satisfactory to Bank in its reasonable
discretion.  The Commitment Reduction
Notice shall specify (1) the requested Commitment Reduction Date, which shall
be not less than ten(10) days nor more than thirty (30) days after the date of
the Commitment Reduction Notice, (2) the amount of the Facility 1 Maximum Committed Amount immediately after the
Commitment Reduction (the “New Facility 1 Maximum Committed Amount”), (3)
Borrower’s agreement that the outstanding principal balance of Facility 1 plus the outstanding amounts of
any letters of credit, including amounts drawn on letters of credit and not yet
reimbursed shall not exceed the New Facility 1 Maximum Committed Amount as of
the Commitment Reduction Date, and (4) that such Commitment Reduction to
the new reduced Facility 1 Maximum
Committed Amount shall be a permanent reduction to the Facility 1 Maximum Committed Amount and the remaining availability under the line of credit.

(ii)           Outstanding Balance; Principal Paydown.  The
outstanding principal balance of Facility 1 plus
the outstanding amounts of any letters of credit, including amounts drawn on
letters of credit and not yet reimbursed, shall not exceed the New Facility 1
Maximum Committed Amount.  If the
outstanding principal balance of Facility 1
plus the outstanding amounts of any letters of credit, including amounts
drawn on letters of credit and not yet reimbursed, exceeds the New Facility 1
Maximum Committed Amount, Borrower shall make a principal payment on or before
the Commitment Reduction Date to pay down Facility
1 to the New Facility 1 Maximum Committed Amount, and the Facility 1
Maximum Committed Amount will not be so reduced unless and until such
principal payment to pay down Facility 1 to
the New Facility 1 Maximum Committed Amount is made.

(iii)          No
Default.  Unless otherwise agreed in writing by Bank, no
default or Event of Default (as defined in the applicable document), or
Unmatured Event of Default shall have occurred and be continuing under any of
the Loan Documents, and if the RE Loan has closed, no default or Event of
Default (as defined in the applicable document), or Unmatured Event of Default
shall have occurred and be continuing under the RE Loan.

(h)           Letters of Credit.  
This line of credit may be used for financing:

(i)            Commercial letters of
credit or standby letters of credit but not to extend beyond the Facility 1 Expiration Date.  Each commercial letter of credit will require
drafts payable at sight.

(ii)           The amount of the
letters of credit outstanding at any one time (including amounts drawn on the
letters of credit and not yet reimbursed) may not exceed One Million and No/100
Dollars ($1,000,000.00).

(iii)          For each letter of
credit issued hereunder, Borrower shall pay to Bank an annual non-refundable
letter of credit fee, payable in advance, in accordance with the Fee and Rate
Schedule attached hereto as Exhibit C.

With respect to any letter of credit issued pursuant
to this Agreement, Borrower agrees as follows:

 15
 

(1)           Any sum drawn under a
letter of credit may, at the option of the Bank, be added to the principal
amount outstanding under Facility 1.  The
amount will bear interest and be due as described elsewhere in this Agreement
and the Facility 1 Note.

(2)           Upon the occurrence of a default or Event of Default (as defined
in that document, subject to applicable notice and cure periods) under any of
the Loan Documents, Borrower shall immediately prepay and make Bank whole for
any outstanding letters of credit.

(3)           The issuance of any
letter of credit or any amendment to any letter of credit is subject to the
Bank’s prior written approval and shall be in form and substance acceptable to
Bank and in favor of a beneficiary acceptable to Bank.

(4)           Borrower shall sign
Bank’s form of Application and Agreement for Commercial Letter of Credit or
Application and Agreement for Standby Letter of Credit and such other related
documents reasonably requested by Bank.

(5)           Borrower shall pay any
issuance and/or other fees that Bank notifies Borrower will be charged for
issuing and processing any letter of credit for Borrower.

(6)           Borrower shall allow
Bank to automatically charge the Account for applicable fees, discounts, and
other charges related to any letter of credit issued hereunder.

2.3          Facility 2 - Term Loan.

(a)           Term Loan.  Facility 2
is a term loan.  The Facility 2 Loan
Amount shall be disbursed concurrently with the closing of the Loans in
a single disbursement (unless otherwise agreed by Bank).  Borrower
may not reborrow principal amounts repaid under Facility 2.

(b)           Maturity Date.  The
maturity date of Facility 2 is May 31, 2014  (the
“Facility 2 Maturity Date”).  All sums
owing under Facility 2 shall be due and payable no later than the Facility 2Maturity
Date.

(d)           Facility 2 Interest Rate and Repayment Terms.  All advances under Facility 2 shall bear interest at the interest rate set forth in
the Facility 2 Note.  Borrower
shall repay Facility 2 pursuant to the terms of the Facility 2 Note.

2.4          Disbursements.

(a)           Disbursement to Pay
Fees and Costs; Debit of Loans at Closing. 
Acting in its reasonable discretion, Bank may use loan funds to pay fees
owing to Bank, interest on the Credit Facilities, legal fees and expenses of
Bank’s attorneys which are payable by Borrower, and such other sums as may be
owing from time to time by Borrower to Bank with respect to the Credit
Facilities, all without further notice to or authorization by Borrower.  Bank at its option may make any such payment
on Borrower’s behalf by (a) debiting loan funds in the amount of the payment
and disbursing such amount to itself, or (b) disbursing all or part of the
payment amount into the Account (if any), and then either debiting the Account
(if any) or invoicing Borrower in the amount of the payment(s).  As of the day the Loans close, Bank is
authorized to make payments on Borrower’s behalf by debiting loan funds and
disbursing such amounts to itself for all costs and expenses payable by
Borrower to Bank pursuant to the terms of this Agreement, if such have not been
received by Bank in immediately available funds directly from Borrower’s own
funds.

 16
 

(b)           Interest on
Disbursements.  Interest on each
disbursement, whether initiated by Borrower or Bank, shall be payable from the
time Bank debits loan funds in the amount of such disbursement.

(c)           Requests for Credit.   Each
request for an extension of credit will be made in writing in a manner
acceptable to the Bank, or by another means acceptable to the Bank (each, a “Request
for Credit”).  Borrower authorizes
either STEVE WEINBERGER or ERIC KUFEL to sign all Requests for Credit and other documents in
connection with the administration of the Credit Facilities.  Borrower represents and warrants to Bank that
the following signatures are specimen signatures of the persons named in the
preceding sentence:

	
  

  	
  /s/ Steve
  Weinberger

  	
   

  	
  /s/ Eric Kufel

  
	
   

  	
  Steve Weinberger

  	
   

  	
  Eric Kufel

  

 

(d)           Disbursements Into
Account.  Unless Bank and Borrower
have otherwise agreed in writing, Bank shall make disbursements into the
Account.

(e)           Telephone, Telecopy, or Electronic Mail
Authorization.

(i)            The Bank may honor telephone, telecopy, or electronic
mail instructions for advances or repayments given by any person authorized to
sign a Request for Credit pursuant to the terms of this Agreement, or any one
of the individual signer(s) of this Agreement, or a person or persons
authorized by any person authorized to sign a Request for Credit pursuant to
the terms of this Agreement or any one of the signer(s) of this Agreement.

(ii)           Borrower hereby
indemnifies, defends, and holds Bank and all Indemnified Parties harmless for,
from, and against all liability, loss, and costs in connection with any act
resulting from telephone, telecopy,
or electronic mail instructions it
reasonably believes are made by any person
authorized to sign a Request for Credit pursuant to the terms of this
Agreement, or by one of the
individual signer(s) of this Agreement, or by a person or persons authorized by
any person authorized to sign a Request for Credit pursuant to the terms of
this Agreement or any one of the signer(s) of this Agreement, or by any
other individual authorized by Borrower to give such instructions.  This indemnity shall survive the termination
of Agreement and/or the payment in full of any and all Credit Facilities.

2.5          Disbursement
Conditions.

(a)           Fulfillment of Conditions.  Bank need
not make any disbursement under any of the Credit Facilities until Borrower
fulfills all conditions of the Loan Documents, at Borrower’s sole cost
and expense and in a manner acceptable to Bank in it sole and absolute
discretion (unless another standard is specified) including the closing and
disbursement conditions set forth in Section
1 above.  If Bank makes a disbursement before
fulfillment of one or more required conditions, that disbursement alone shall
not be a waiver of such conditions, and Bank reserves the right to require
their fulfillment before making any subsequent disbursements.  Bank shall have no obligation to disburse any
loan funds or make an financial accommodations to or for Borrower if an Event
of Default has occurred or an Unmatured Event of Default has occurred and is
continuing.

(b)           Deferral of Conditions; Conditions
Subsequent.  If Borrower has not
fulfilled all closing and disbursement conditions prior to the date set for
closing the Loans, Bank, at its option, may close the Loan and may disburse
some or all loan funds subject to Borrower’s compliance with any or all such
condition(s) as conditions subsequent to the closing.  In such event, Bank shall notify Borrower of

 17
 

the conditions
subsequent that must be met and the time period(s) within which Borrower is
required to comply.  If no time period
for compliance is specified by Bank as to any condition subsequent, then
Borrower shall comply with such condition subsequent within thirty (30) days of
the date of closing of the Loans. 
Failure of Borrower to comply with all conditions subsequent within the
applicable time periods shall be an Event of Default hereunder.

2.6          Facility Fee.  Borrower shall pay to Bank in immediately
available funds (unless paid from Loan funds as specifically set forth below),
on or prior to the closing of the Loans, a closing and facility fee (the “Facility
Fee”) in an amount equal to Twenty Thousand and No/100 Dollars ($20,000.00).

2.7          Automatic
Deduction.

(a)           Payments and Fees.  Borrower agrees that payments and fees due
from Borrower to Bank on the Notes and/or pursuant to the terms of this
Agreement or other Loan Documents (each a “Payment” and collectively, “Payments”),
including any Unused Commitment Fees due hereunder, will be deducted
automatically on the due date from the Account.

(b)           Date of Debit.  Bank will debit the Account on the dates that
Payments become due.  If a due date does
not fall on a Banking Day (as such term is defined in the Note), Bank will
debit the Account on the first Banking Day following the due date.

(c)           Maintenance of Funds.  Borrower will maintain sufficient funds in
the Account on the dates Bank enters debits authorized by this Agreement.  If there are insufficient funds in the
Account on the date Bank enters any debit authorized by this Agreement, the
debit will be reversed.

(d)           Security.  Borrower hereby grants to Bank a security
interest in the Account, and any other accounts from which Borrower may
hereafter authorize Bank to debit payments due on the Credit Facilities, for
the purpose of securing the payment of amounts Bank is authorized to deduct
from the Account or such other accounts. 
The security interest is granted only to the extent of such authorized
deductions, and does not create a lien to secure any other obligation owed by
Borrower to Bank, whether under this Agreement or otherwise.

2.8          Collateral
Security.

(a)           Collateral.  The Credit Facilities shall be secured by all
of the following:

(i)            Business
Assets.  A first-priority security interest in
all business assets of the Obligated Group, including but not limited to all
Rader Acquisition Assets being purchased by RFAC as part of the Rader
Acquisition, as more particularly described in one or more Security Agreements;
provided, however, that as to any business assets subject to an
Approved Existing Lien, Bank shall obtain a second-priority
security interest, subject only to the Approved Existing Lien; provided
further, however, that with respect to any vehicles currently owned
by any being purchased as part of the Rader Acquisition Assets, no lien of Bank
on the certificates of title for such vehicles shall be required.

(ii)           Accounts.  An
assignment of, and first-priority
security interest in the Account and all other accounts of Borrower, and all
funds contained or deposited therein.

(iii)          Swap Contract Payments.  An
assignment of, a lien on, and first-priority
security interest in all payments due at any time and from time to time from
Bank to Borrower under any Swap Contract.

 18
 

(b)           Release of
Collateral.  Unless otherwise agreed
in writing by Bank, Bank’s security interest in all collateral for the Loan
shall be released by Bank when the Credit Facilities are paid in full and no
further credit or financial accommodations are available to Borrower thereunder
unless such collateral also serves as collateral for other indebtedness of
Borrower or any other party to Bank; provided, however, that if
there is any conflict in the release terms contained in any security agreement,
assignment, or other security instrument as to the terms upon which the Bank’s
security interest in the collateral described in that document (or any portion
thereof) shall be terminated and/or released, and the terms of this Section,
then the terms of any such security agreement, assignment, or other security
instrument shall control and govern the collateral described therein.

(c)           Collateral Documents.  Borrower and each other Obligated Group Party
agrees to execute and/or authorize, as the case may be, any and all documents,
including security agreements and financing statements, as Bank may reasonably
request in order to create, perfect, or continue the security interests
described above.

(d)            Cross-Collateralization;
Payment Application.

(i)             Borrower
and each other Obligated Group Party understands and acknowledges that certain
collateral will secure both Facility 1 and Facility 2, and may secure other
Obligations (which will include the RE Loan effective as of the RE Loan Closing
Date), and thus Facility 1 and Facility 2 (and any other secured Obligations)
will be cross-collateralized by such collateral.  Without limitation, at the closing of the
Credit Facilities the Security Agreement(s) executed by Borrower and/or the
other Obligated Group Parties covering the collateral described therein will
cover all Obligations, including Facility 1 and Facility 2, and thus Facility 1
and Facility 2 will be cross-collateralized by such collateral.

(ii)           Borrower
and each other Obligated Group Party agrees that all involuntary payments and
prepayments by liquidation of all or any portion of such collateral, through
foreclosure or otherwise, shall be applied to Borrower’s obligations under the
Loan Documents, and any other Obligations secured thereby, in such order and
manner as Bank shall determine in its sole and absolute discretion.

(iii)          Borrower and each other Obligated Group Party
understands and agrees that, unless otherwise agreed in writing by Bank, (i)
Bank may direct the order and manner of any sale of all or any part of the
collateral held for any Credit Facility, and Bank may also bid at any such
sale, and (ii) Bank may apply any proceeds of any collateral to payment of
Facility 1 and Facility 2 (and any other secured Obligations) in such manner,
order, and priority as Bank may elect, whether or not those obligations are guaranteed
by any Guaranty or secured by other collateral at the time of the application.

(iv)         Each
of Borrower, RFAC, and each other Obligated Group Party understands and
acknowledges that, effective as of the RE Loan Closing Date, (i) the RE Loan
Deed of Trust encumbering the real and personal property described therein (the
“RE Property”) will secure the RE Loan and will also secure Facility 1 and
Facility 2, thus the RE Loan and Facility 1 and Facility 2 will be
cross-collateralized by the RE Property, (ii) the Security Agreement(s)
covering Borrower’s and each other Obligated Group Party’s business assets,
including the Rader Acquisition Assets, will secure both the RE Loan and the
Credit Facilities (and other indebtedness described therein), thus the Credit
Facilities and the RE Loan will also be cross-collateralized by the collateral
described in the Security Agreement(s). 
All other collateral for the RE Loan, if any, will also secure the
Credit Facilities.  All other collateral
for the Credit Facilities, if any, will also secure the RE Loan.

 19
 

(v)          Each
of Borrower, RFAC, and each other Obligated Group Party agrees that all
involuntary payments and prepayments by liquidation of the RE Property, or any
portion thereof, as collateral under the RE Deed of Trust, through foreclosure
or otherwise, shall be applied (i) first, to Borrower’s obligations under
the RE Loan Documents; and (ii) then, to Borrower’s obligations under the
Loan Documents and any other Obligations secured thereby in such order and
manner as Bank shall determine in its sole and absolute discretion.

2.9          Termination of Existing Revolving Line of Credit. 
As a material condition and a material consideration of the making of
the Loans, Borrower hereby agrees that the existing revolving line of credit loan made pursuant
to that certain Loan Agreement (Revolving Line of Credit Loan and Term Loan)
dated as of August 19, 2005 between Borrower, formerly known as Poore Brothers,
Inc., and Bank, as amended and modified prior to the date hereof, is hereby
terminated and Bank shall have no obligation to make any disbursements
thereunder.  There are no current
outstanding sums due under this existing revolving line of credit loan.

3.             Covenants
of Borrower.   Borrower
and each other Obligated Group Party, as applicable to their respective
businesses and assets, promises to keep each of the covenants set forth below,
unless Bank has waived compliance in writing.

3.1          Compliance with Laws;
Maintenance of Business. 
Borrower and each other Obligated Group Party shall (a) comply with
Requirements and shall maintain its existence and business operations in
accordance therewith, (b) pay its debts and obligations when due under normal
terms, and pay on or before their due date, all taxes, assessments, fees, and
other governmental monetary obligations (except as may be contested in good
faith by proper proceedings if properly reflected on Borrower’s and the
applicable Obligated Group Party’s books, and (c) comply with the terms of any
and all agreements entered into by Borrower or any other Obligated Group Party,
as the case may be, with respect to its business operations, including but not
limited to all franchise, licensing, or similar contracts or agreements, unless
the failure to comply would not a have materially adverse effect on Borrower’s
or any other Obligated Group Party’s business, Borrower’s or any other
Obligated Group Party’s financial condition, or Borrower’s or any other
Obligated Group Party’s ability to repay the Credit Facilities.

3.2          Taxes; Additional Costs.  Borrower
shall not deduct any taxes from any payments it makes to the Bank.  If any government authority imposes any taxes
on any payments made by Borrower, Borrower shall pay the taxes and shall also
pay to Bank, at the time interest is paid, any additional amount which the Bank
specifies as necessary to preserve the after-tax yield the Bank would have
received if such taxes had not been imposed. 
Upon request by the Bank, Borrower will confirm that it has paid the
taxes by giving the Bank official tax receipts (or notarized copies) within
thirty (30) days after the due date. 
However, Borrower will not pay the Bank’s net income taxes.  Additionally, Borrower shall pay the Bank, on
demand, for the Bank’s costs or losses arising from any statute or regulation,
or any request or requirement of a regulatory agency.  The costs and losses (a) will be allocated to
the loan in a manner determined by the Bank, using any reasonable method, and
(b) include the following: (i) any reserve or deposit requirements, and (ii)
any capital requirements relating to the Bank’s assets and commitments for
credit.

3.3          Insurance.

(a)           Borrower and each other
Obligated Group Party shall provide, maintain, and keep in force at all times
until the Credit Facilities are paid in full and no further credit or financial
accommodations are available to Borrower thereunder, any and all insurance Bank may from time to time
require, covering (i) property damage
(including loss of use and occupancy) to any of Borrower’s properties, (ii) public
liability insurance including coverage for contractual liability, product
liability and workers’ compensation, and (ii) any other insurance which is
usual for Borrower and/or Borrower’s business and/or each other
Obligated Group Party and/or its business, all
such insurance to be satisfactory to Bank
as to amount, nature, and carrier.  Such
insurance may include (A) comprehensive liability insurance naming

 20
 

Bank as an additional
insured, on an “occurrence” basis against claims for “personal injury” liability,
including bodily injury, death, or property damage liability, with limits of
not less than those required under current Bank policy, such insurance to be
primary and noncontributory with any other insurance carried by Bank, and (B)
such policy or policies of worker’s compensation insurance as may be required
by applicable worker’s compensation insurance laws (including employer’s
liability insurance, if required by Bank), covering all employees of Borrower
and each other Obligated Group Party.

(b)           All policies of
insurance required by Bank shall be issued by companies approved by Bank having
an A.M. Best’s rating acceptable to Bank, with limits, coverage, forms,
deductibles, inception and expiration dates and cancellation provisions
acceptable to Bank.  An approval by Bank
is not, and may not be deemed to be, a representation of the solvency of any
insurer or the sufficiency of any amount of insurance.  Each policy of insurance required under the
Loan Documents shall provide that it may not be modified or canceled without at
least thirty (30) days’ prior written notice to Bank.  When any required insurance policy expires,
Borrower and any other applicable Obligated Group Parties, as the case may be,
shall furnish Bank with proof acceptable to Bank that the policy has been
reinstated or a new policy issued, continuing in force the insurance covered by
the expired policy.  Borrower and any
other applicable Obligated Group Parties, as the case may be, shall also furnish
evidence satisfactory to Bank that all premiums for such policy have been paid
within thirty (30) days of renewal or issuance. 
If Bank fails to receive such proof and evidence, Bank has the right,
but not the obligation, to obtain current coverage and advance funds to pay the
premiums for it.  Borrower and/or any
other applicable Obligated Group Parties, as the case may be, shall repay Bank
immediately on demand for any advance for such premiums, which will be an
additional loan to Borrower bearing interest at the Default Rate.  At Bank’s request, Borrower and any other
applicable Obligated Group Parties, as the case may be, shall supply Bank with
an original, countersigned original, or certified copy of any policy.

3.4          Payment of Expenses.  Borrower shall pay Bank’s reasonable costs
and expenses incurred in connection with the making, disbursement, and
administration of the Credit Facilities, including Bank’s field audit
fees.  Borrower shall also pay any and
all of Bank’s costs and expenses incurred in connection with any revisions,
extensions, renewals, or “workouts” of any of the Credit Facilities, and in the
exercise of any of Bank’s rights or remedies under this Agreement.  Such costs and expenses include charges for
document review and preparation, reasonable legal fees and expenses of Bank’s
counsel, and any other reasonable fees and costs for services, regardless of
whether such services are furnished by Bank’s employees or agents or
independent contractors.  Borrower
acknowledges that amounts payable under this Section are not included in any
loan or commitment fees for any of the Credit Facilities.  All such sums incurred by Bank and not
immediately reimbursed by Borrower will be considered an additional loan to
Borrower bearing interest at the Default Rate.

3.5          Financial and Other Information.  Borrower
and each other Obligated Group Party shall
keep true and correct financial books and records, using GAAP, or such other
accounting principles as Bank in its reasonable judgment may find acceptable
from time to time.  The financial
statements and other information required of Borrower under this Section shall
be prepared on a consolidated basis including all Obligated Group Parties.  Borrower,
and each other Obligated Group Party if applicable, shall provide to Bank the
following:

(a)           Annual
Financial Statements; Annual Report on Form 10-K.  Via
either the Edgar System, Borrower’s Home Page, or such other system acceptable
to Bank, within ninety (90)  days after the filing of Borrower’s Annual Report
on Form 10-K for the fiscal year then ended
with the Securities and Exchange Commission, the annual Independent
Registered Public Accounting Firm prepared
and audited financial statements for such fiscal year as contained in
such Annual Report on Form 10-K and,
as soon as it shall become available, the annual report to shareholders of
Borrower for the fiscal year then ended.

(b)           Interim Financial Statements; Quarterly
Report on Form 10-Q.  For each fiscal quarter other than the last
fiscal quarter of each fiscal year, via the Edgar System, Borrower’s Home

 21
 

Page, or such
other system acceptable to Bank, within forty-five (45) days after the filing
of its Quarterly Report on Form 10-Q for the fiscal quarter then ended with the Securities and Exchange Commission,
copies of the financial statements for such fiscal quarter as contained
in such Quarterly Report on Form 10-Q.

(c)           Other Reports.  Via the Edgar System,
Borrower’s Home Page, or such other system acceptable to Bank, promptly after
the same become publicly available, copies of all periodic reports, proxy
statements, and other materials filed by Borrower or any Affiliate of Borrower
with the Securities and Exchange Commission
or any governmental authority succeeding to any or all of the functions of the
Securities and Exchange Commission.

(d)           Compliance
Certificate.  Within forty-five (45)
days after the end of each fiscal quarter, a certificate in the form attached
hereto as Exhibit A (each,
a “Compliance Certificate”), executed by Borrower’s chief financial officer or
other officer or person acceptable to Bank, certifying (1) that the Obligated
Group is in compliance with the financial covenants set forth in this
agreement, including (i) the minimum Fixed Charge Coverage Ratio required under
Section 3.17, (ii) the
maximum Leverage Ratio required under Section
3.17, and (ii) the minimum Tangible Net Worth required under Section 3.17, (2) that the
representations and warranties set forth in the Agreement are true and correct
as of the date of the certificate, and (3) that, as of the date of the certificate,
no default or Event of Default, or Unmatured Event of Default, has occurred and
is continuing under the Agreement.

(e)           Agings of Accounts
Receivable Report.  Within thirty (30) days after the end of
each calendar month, the Obligated Group’s detailed aging by invoice date of
accounts and contracts receivable as of the last day of such monthly reporting
period, together with an explanation of any adjustments made at the end of such
period.

(f)            Accounts Payable
Report.  Not later than thirty (30) days
after the end of each calendar month, the Obligated Group’s detailed accounts
payable report as of the last day of such period, together with an explanation
of any adjustments made at the end of such period.  Such detailed accounts payable report shall
include Royalties Payable.

(g)           Inventory Report.  Not later than thirty (30)  days after the end of each calendar month,
the Obligated Group’s detailed schedule of inventory, together with an
explanation of any adjustments made at the end of such period. Such detailed
inventory report shall include the total of all inventory of the Obligated
Group, and the portions of such total representing (i) Eligible Raw Material
Inventory, (ii) Eligible Finished Goods Inventory, and (iii) RFAC Eligible
Inventory.

(h)           Borrowing Base
Certificate.  Not later than thirty
(30) days after the end of each calendar month, or as otherwise requested by
Bank, a certificate in the form attached hereto as Exhibit B (each, a “Borrowing Base
Certificate”) executed by Borrower’s chief financial officer or other officer
or person acceptable to Bank and detailing the status of the Borrowing Base as
of the last day of the applicable calendar month.  Such borrowing base certificate shall include
the calculated total of the Borrowing Base.

(i)            Monthly Leadership
Financial Package.  Promptly upon the
request of Bank, Borrower’s monthly leadership financial package, together with
such related information as requested by Bank.

(j)            Other Information.  Promptly
upon the request of Bank, such other information as Bank may reasonably request
concerning the affairs and properties of Borrower and/or any other Obligated
Group Party.

 22
 

Notwithstanding anything
in this Section to the contrary, if for any reason the Edgar System, Borrower’s
Home Page, and/or such other system acceptable to Bank are not available to
Borrower as is required for making available the financial statements or
reports referred to above, Borrower shall then furnish a copy of such financial
statements or reports to Bank.

By signing where
indicated below in this Agreement, the Obligated Group Parties hereby authorize
Borrower to represent, warrant, and certify on their behalf as to the financial
covenants and other items concerning the Obligated Group set forth in
Compliance Certificate and as to any other financial and other information
provided by Borrower to Bank concerning the Obligated Group and/or any
individual Obligated Group Party.

3.6          Notices.  Borrower and any other Obligated Group Party
to the extent applicable to them shall notify Bank promptly in writing of any
and all of the following:

(a)           Any existing and/or
threatened litigation, claims, investigations, administrative proceedings, and
similar actions affecting Borrower or any other Obligated Group Party where, if monetary in nature, the amount claimed
is or may be Two Hundred Fifty Thousand and No/100 Dollars ($250,000.00) or
more, and which (i) is not dismissed within sixty (60) days of the
filing thereof, and (ii) is not Covered by Insurance.

(b)           Any material adverse change
in Borrower’s or any Guarantor’s financial condition, any material adverse
change in Borrower’s any other Obligated Group Party’s operations, or any other
circumstance, event, or occurrence that results in a material adverse change in
Borrower’s or any Guarantor’s ability to timely perform any of its obligations
under any of the Loan Documents.

(c)            Any notice that
Borrower’s or any Guarantor’s business fails in any respect to comply with any
Requirement, and/or any material dispute
between Borrower and any Guarantor, or between Borrower or any Guarantor and
any government authority.

(d)            Any (i) material dispute between Borrower, or
other Obligated Group Party, and any third
party franchisor or licensor, where such party’s franchise or license is material
to Borrower’s or any other Obligated Group Party’s business, or (ii) any default or breach
under any franchise agreement or license
agreement to which Borrower or other Obligated Group Party is a party, where the franchise or license under
such agreement is material to Borrower’s or any other Obligated Group
Party’s business.

(e)            Any change in Borrower’s or any other
Obligated Group Party’s name, legal
structure or business structure, state
in which Borrower or any other
Obligated Group Party has filed its entity incorporation or organizational
documents, and/or location of its
place of business or its chief executive office if it has more than one place
of business, Borrower’s or any other
Obligated Group Party’s organizational identification number assigned by the
state of its incorporation or organization, and/or any change in the location
of Borrower’s or any other Obligated
Group Party’s books and records, all which are currently located at Borrower’s
chief executive office (except as otherwise disclosed in writing to Bank).

(f)             The institution of
any steps by Borrower or any other
Obligated Group Party to withdraw from or terminate any employee benefit plan
as to which Borrower or any other
Obligated Group Party may have liability.

(g)            Any Change in Control
or any change in the key management of Borrower.

(h)            Any default, Event of
Default, or Unmatured Event of Default under any of the Loan Documents by
Borrower or any other Obligated
Group Party and any alleged breach or default any of the Loan Documents by
Bank.

 23

(i)             Any notice that any
collateral for the Credit Facilities is subject to any Grower Lien.

3.7          Audits.  Borrower shall allow Bank and its agents to
inspect Borrower’s, and any other
Obligated Group Party’s properties and examine, audit, and make copies of
Borrower’s, and  any other Obligated
Group Party’s books and records at any reasonable time.  If any of Borrower’s or any other Obligated Group Party’s properties, books, or
records are in the possession of a third party, Borrower or and each other Obligated Group Party
authorizes that third party to permit Bank or its agents to have access to
perform inspections or audits and to respond to Bank’s requests for information
concerning such properties, books and records.

3.8          Keeping Guarantors
and Third Party Pledgors Informed. 
If any Credit Facility is guaranteed at any time, or of any third party
has pledged or hypothecated any collateral for any Credit Facility, Borrower
shall keep each Obligated Group
Party and any other Guarantor and/or third party pledgor informed of Borrower’s
financial condition and business operations, and any and all other
circumstances that may affect Borrower’s ability to pay or perform its
obligations under the Loan Documents. 
However, any failure to do so shall not give rise to any defense to any
Guarantor and/or third party pledgor.

3.9          Use of
Proceeds.  Borrower
shall use the Loans for the purposes described in Recital A. above unless other wise agreed in writing by
Bank.

3.10        Performance of Acts.  Upon Bank’s request, Borrower and each other Obligated Group Party shall
perform all acts necessary or advisable to perfect any lien or security
interest provided for in the Loan Documents or to carry out the intent of the
Loan Documents.

3.11        Maintenance of Properties; Preservation of Rights.  Borrower and each other Obligated Group Party shall make any repairs, renewals, or replacements to
keep its respective properties in good working condition.  Borrower and
each other Obligated Group Party shall obtain, preserve and maintain in
good standing, as applicable, all rights, privileges and franchises necessary
or desirable for the operation of its respective business.

3.12        Indemnity Regarding
Hazardous Substances and Other Risks. 
Borrower and each other
Obligated Group Party’s indemnifies, defends, and holds the Indemnified Parties
harmless for, from, and against any and all actual or threatened liabilities,
claims, actions, causes of action, judgments, orders, damages (including
foreseeable and unforeseeable consequential damages), costs, expenses, fines,
penalties, and losses (including sums paid in settlement of claims and all
reasonable consultant, expert and legal fees and expenses of Bank’s counsel),
and any resulting damages, harm or injuries to the person or property of any
third parties, directly or indirectly arising out of or resulting from (a) the use, generation, manufacture, production,
storage, release, threatened release, discharge, disposal or presence of any
Hazardous Substance by Borrower, any other Obligated Group Party, or any of their affiliates, and the
officers, directors, employees, and agents of each of them, (b) any failure to
satisfy any Requirements, (c) breach of any representation or warranty made or
given by Borrower or any other
Obligated Group Party to any of the Indemnified Parties, and/or (d) any claim
or cause of action of any kind by any party that any Indemnified Party is
liable for any act or omission of Borrower or
any other Obligated Group Party or any other person or entity in
connection with the ownership or operation or Borrower’s or any other Obligated Group Party’s
respective businesses or any property of Borrower or any other Obligated Group Party, excepting those arising out
of, or resulting, solely from the applicable Indemnified Party’s gross negligence
or willful misconduct.  Notwithstanding,
anything to the contrary in any other Loan Document, the provisions of this
Section shall survive the termination of this Agreement and the repayment of
any and/or all of the Credit Facilities.

 24
 

3.13        Other Debts.  Except as otherwise disclosed in writing to
Bank prior to the date of this Agreement or provided herein or in any other
Loan Document, without Bank’s prior written consent, Borrower and each
other Obligated Group Party agrees that it shall
not have outstanding or incur any direct or contingent debts or lease
obligations (other than those to Bank), or become liable for the debts of
others.  This does not prohibit:

(a)           Acquiring goods, supplies, or merchandise on normal trade credit.

(b)           Endorsing negotiable instruments received in the usual course of
business.

(c)           Debts, lines of credit, and/or leases in existence on the date of this
Agreement previously disclosed in writing to Bank.

3.14        Other Liens.  Except as otherwise disclosed in writing to
Bank prior to the date of this Agreement or provided herein or in any other
Loan Document, without Bank’s prior written consent, Borrower and each
other Obligated Group Party agrees that it shall
not create, assume, or allow any security interest or lien (including judicial
liens) on property such party now or later owns, except:

(a)           Security agreements and other security instruments in favor of Bank.

(b)           Liens for taxes not yet due.

(c)           Liens outstanding on the date of this Agreement previously disclosed in
writing to the Bank, which includes the Approved Existing Liens.

3.15        Negative
Covenants.  Without Bank’s prior
written consent, Borrower and each
other Obligated Group Party agrees that it shall
not:

(a)           engage
in any business activities substantially different from such party’s present
business;

(b)           liquidate or dissolve
its business;

(c)           lease, sell, or
otherwise dispose of all or a substantial part of its business or assets or
sell or otherwise dispose of any assets for less than fair market price, or sell
or make any distribution of its assets that could adversely affect Borrower’s or
such party’s financial condition;

(d)           enter into any
consolidation, merger, pool, joint venture, syndicate or other combination;

(e)           enter into any sale and
leaseback agreement covering any of the fixed or capital assets of such party;

(f)            acquire or purchase a business or its assets;

(g)           cause, permit, or suffer any direct or indirect Change in Control in
Borrower or any other Obligated Group Party; or

(h)           make any loans, advances, or other extensions of credit to anyone.

3.16        Employee Benefit Plans;
ERISA Compliance.  Borrower and each other Obligated Group Party
shall at all times maintain, and cause each Guarantor to at all times maintain,
each employee benefit plan as to which Borrower, any other Obligated Group
Party, or any Guarantor, as the

 25
 

case may be, may have any
liability, in compliance with all applicable laws, rules, and regulations.  Borrower and each other Obligated Group Party
shall at all times comply with, and cause each Guarantor to comply with, the
provisions of ERISA with respect to any retirement or other employee benefit
plan to which it/they is/are a party as employer.  As soon as possible after Borrower or and any
other Obligated Group Party knows, or has reason to know, that any Reportable
Event (as defined in ERISA) with respect to any such plan of Borrower, any
other Obligated Group Party, or any Guarantor has occurred, it shall furnish to
Bank a written statement setting forth details as to such Reportable Event and
the action, if any, which Borrower or the applicable other Obligated Group
Party or applicable Guarantor proposes to take with respect thereto, together
with a copy of the notice of such Reportable Event furnished to the Pension
Benefit Guaranty Corporation.

3.17         Financial
Covenants.  Financial
terms used herein which are not specifically defined herein shall have the
meanings ascribed to them under GAAP. 
Borrower and each other Obligated Group Party understands and
acknowledges that a default of any of the covenants set forth shall be an Event
of Default under this Agreement.

(a)           Fixed
Charge Coverage Ratio.  The Obligated Group shall maintain, and
Borrower shall cause the Obligated Group to maintain, a Fixed Charge Coverage
Ratio of at least  1.15 to 1.00.  This Fixed Charge Coverage Ratio shall be
tested quarterly (i) on a cumulative consolidated basis for the first four
quarters ending after the Closing Date, and (ii) thereafter, on a rolling four
(4) quarter basis, calculated at the end of each fiscal quarter, using the
results of that fiscal quarter and each of the three (3) immediately preceding
fiscal quarters.

(b)           Leverage
Ratio.  The Obligated Group shall maintain,
and Borrower shall cause the Obligated Group to maintain, a Leverage Ratio as of the last day
of each fiscal year quarter beginning with fiscal quarter ended June, 30, 2008, of not more than  3.50 to 1.00.

(c)           Tangible Net Worth.  The Obligated Group shall maintain, and
Borrower shall cause the Obligated Group to maintain, Tangible Net Worth as of
June 30, 2007 of at least the Initial Minimum TNW Amount, and
thereafter, of at least the Minimum TNW Amount.

4.             Representations
and Warranties.  Borrower and
each other Obligated Group Party promises that each representation and warranty
set forth below is and will be true, accurate and correct as of the date of
this Agreement as to such party to the extent applicable.  Each Request for Credit delivered to Bank
will be deemed a reaffirmation of each and every representation and warranty
made by Borrower and each other Obligated Group Party in this Agreement.

4.1          Authority;
Enforceability.  Borrower and
each other Obligated Group Party has complied with any and all laws and
regulations concerning its organization, existence, and the transaction of its
business.  Borrower and each other
Obligated Group Party and each Guarantor is authorized to execute, deliver, and
perform its obligations under the Loan Documents.  Those documents are valid and binding
obligations of Borrower, each other Obligated Group Party, and each Guarantor,
as applicable.

4.2          Compliance With Law.  Borrower and each other Obligated Group Party
is familiar and has complied with all of the Requirements, as well as all other
applicable laws, regulations, and ordinances. 
No provision or obligation of Borrower, each other Obligated Group
Party, or any Guarantor contained in any of the Loan Documents violates any of
the Requirements or any order or ruling of any court or governmental entity.

4.3          No Violation.  The execution and delivery of this Agreement
and the other Loan Documents and performance by Borrower and each other
Obligated Group Party of its obligations hereunder and thereunder will not
result in a default under any other material agreement to which Borrower or any
other Obligated Group Party is a party.

 26
 

4.4          No Claims.  No claims, actions, proceedings, or
investigations are pending against Borrower or any other Obligated Group Party,
except for those previously disclosed by Borrower and/or such other Obligated
Group Party to Bank in writing.  To the
best of Borrower’s and each other Obligated Group Party’s knowledge, no threat
of any such claim, action, proceeding, or investigation exists, except for
those previously disclosed by Borrower or such other Obligated Group Party to
Bank in writing.

4.5          Financial Information.  All financial information delivered to Bank,
including all information relating to the financial condition of Borrower
and/or any other Obligated Group Party fairly and accurately represents the
financial condition being reported on as of its date.  All such information is prepared in
accordance with GAAP consistently applied, unless otherwise noted.  There has been no material adverse change in
the financial condition of Borrower and/or any other Obligated Group Party,
except as previously disclosed to Bank in writing in later financial
information and found acceptable to Bank in its sole and absolute discretion.

4.6          Accuracy.  All reports, documents, instruments,
information, and forms of evidence delivered to Bank concerning the Credit
Facilities or required by this Agreement, any loan commitment, and/or the other
Loan Documents are accurate, correct, and sufficiently complete to give Bank
true and accurate knowledge of their subject matter.  None of them contains any misrepresentation
or material omission.

4.7          Taxes.  Borrower, and each other Obligated Group
Party to the extent applicable, has filed all required state, federal, and
local income tax returns and has paid all taxes when due and payable.  Borrower and each other Obligated Group Party
knows of no basis for any additional assessment of taxes.

4.8          Borrower Not a “Foreign
Person”.  Borrower is not a “foreign
person” within the meaning of Section 1445(f)(3) of the Internal Revenue Code of
1986, as amended from time to time.  No
other Obligated Group Party is a “foreign person” within the meaning of Section
1445(f)(3) of the Internal Revenue Code of 1986, as amended from time to time.

4.9          No Breaches or
Defaults. No event has occurred and is continuing which would
constitute a default or Event of Default (as defined in the applicable
document) or an Unmatured Event of Default under any of the Loan Documents.

4.10        ERISA Plans.  Either:

(a)           Borrower, and each other Obligated Group Party, are not parties in interest to any plan
defined or regulated under ERISA (each, a “Plan”), and the assets of Borrower
and/or any other Obligated Group Party are not “plan assets” of any employee
benefit plan covered by ERISA or Section 4975 of the Internal Revenue
Code, or

(b)           If Borrower or any other Obligated Group
Party is a party in interest to a plan defined or regulated under ERISA, then
all of the following are true: (i) each of Borrower and such other
Obligated Group Party has fulfilled
its obligations, if any, under the minimum funding standards of ERISA and the
Code with respect to each Plan and is in compliance in all material respects
with the presently applicable provisions of ERISA and the Code, and has not
incurred any liability with respect to any Plan under Title IV of ERISA, (ii)
no reportable event has occurred under Section 4043(b) of ERISA for which the
PBGC requires thirty (30) days notice, (iii) no action by Borrower and/or any other Obligated Group Party to terminate or withdraw from any Plan has been
taken, and no notice of intent to terminate a Plan has been filed under Section
4041 of ERISA, and (iv) no proceeding has been commenced with respect to a Plan
under Section 4042 of ERISA, and no event has occurred or condition exists
which might constitute grounds for the commencement of such a proceeding.

 27
 

4.11        Disclosure to
Guarantors and Third Parties. 
Before any Guarantor and/or any other third party (if any) became
obligated in connection with the Credit Facilities (or any of them) or under
any of the Loan Documents, Borrower made full disclosure to that Guarantor
and/or third party trustor or pledgor regarding Borrower’s financial condition
and business operations, and all other circumstances bearing upon Borrower’s
ability to pay and perform its obligations under the Loan Documents.

5.             Swap Contract.  Not later than ninety (90) days after the
Closing Date, Borrower may elect to purchase from Bank a swap for one or more
of the Credit Facilities, which if purchased will be governed by a Swap
Contract entered into between Bank and Borrower.  The Swap Contract is a “Loan Document.”  Capitalized
terms used here without definition shall have the meanings given to them in the
Swap Contract.  With respect to the any swap purchased
and to each Swap Contract executed by Borrower, the following shall apply:

5.1          Swap Payments; Grant of Security Interest.  Under
each Swap Contract, Bank or Borrower may be obligated from time to time to make
certain payments (“Swap Payments”) to the other party.  Each Swap Payment to be made by Bank to
Borrower shall be collateral for the Credit Facilities. 
Effective as of the date that Borrower and Bank executed any Swap
Contract, as security for the prompt payment and performance of the
Credit Facilities, and all obligations
and indebtedness of Borrower to Bank under
the Loan Documents, and all renewals, extensions, modifications,
amendments, and/or supplements thereto, Borrower hereby irrevocably and unconditionally assigns, grants, pledges,
transfers, and sets over to Bank, and there is hereby created a security
interest in favor of Bank, in and to each Swap
Payment due from Bank to Borrower, whether now or hereafter existing,
and all proceeds thereof.

5.2          No Assumption of Borrower’s
Obligations.  Borrower expressly understands and agrees
that Bank does not assume any duties or obligations of Borrower arising out of
the Note, any Swap Contract, or any other Loan Document.

6.             Default and
Remedies.

6.1          Events
of Default.  An Event of
Default will occur under this Agreement upon the occurrence of any of the
following events:

(a)           Borrower fails to make
any payment of principal or interest under the Note within ten (10) days after
the date when due; or

(b)           Borrower fails to
comply with any provision or covenant contained in this Agreement calling for
the payment of money and does not cure that failure within ten (10) days after
written notice from Bank; or

(c)           Borrower or any
Guarantor becomes insolvent or the subject of any Insolvency Proceeding, or any
such party consents to the appointment or taking of possession by a receiver
(or similar official) with respect to its business or property, or makes an
assignment for the benefit of creditors; provided, however, that
any involuntary Insolvency Proceeding shall not be considered an Event of
Default hereunder if it is either (i) consented to in writing by Bank, or
(ii) dismissed within ninety (90) days of the filing thereof; or

(d)           Borrower or any
Guarantor dissolves or liquidates; or

(e)           Any representation or
warranty when made or given in any of the Loan Documents proves to be false or
misleading in any material respect; or

 28
 

(f)            A material adverse
change in Borrower’s or any Guarantor’s financial condition, or an event or
condition materially impairing Borrower’s or any Guarantor’s ability to repay
the Loans occurs; or

(g)           Borrower fails to meet
the conditions of, or fails to perform any obligation under, any other
agreement Borrower has with Bank or any affiliate of Bank; or

(h)           Any Guarantor fails to
meet the conditions of, or fails to perform any obligation under, any other
agreement any of Guarantor or such affiliated person has with Bank or any
affiliate of Bank (subject to applicable notice and cure periods); or

(i)            Borrower defaults
under any agreement in connection with any credit in the amount of Twenty-Five Thousand and No/100 Dollars ($25,000.00)
or more that Borrower has obtained from anyone else if the default
consists of failing to make a payment when due or gives the other lender the
right to accelerate the obligation; or

(j)            Any Guarantor defaults
under any agreement in connection with any credit in the amount of Twenty-Five Thousand and No/100 Dollars ($25,000.00)
or more that Guarantor has obtained from anyone else if the default
consists of failing to make a payment when due or gives the other lender the
right to accelerate the obligation (each subject to applicable notice and cure
periods); or

(k)           Any of the following
occurs:  (i) a lawsuit is filed against
Borrower or any Guarantor where the amount
claimed is Two Hundred Fifty Thousand and No/100 Dollars ($250,000.00) or more
and which (A) is not dismissed within sixty (60) days of the filing
thereof, and (B) is not Covered by Insurance, (ii) a judgment or judgments are
entered against Borrower or any Guarantor, or (iii) any government authority
takes action materially adversely affecting Borrower’s or any Guarantor’s
ability to repay the Loans; or

(l)            Bank fails to have an enforceable first-priority lien on or first-priority security interest in
any property given as security for the Loans, except as otherwise agreed by
Bank in writing, and except for as to Approved Existing Lien Collateral wherein
it shall only be an Event of Default hereunder if Bank fails to have an
enforceable second-priority
lien on or second-priority
security interest in such collateral, subject only the applicable Approved
Existing Lien(s); or

(m)          Under
any of the Loan Documents, a default or an Event of Default (as defined in that
document, subject to applicable notice and cure periods) occurs; or

(n)           The occurrence of any
one or more of the following events with respect to Borrower and/or any other Obligated Group Party,
provided such event or events could reasonably be expected, in the judgment of
the Bank, to subject Borrower and/or
any other Obligated Group Party to any tax, penalty, or liability (or
any combination of the foregoing) which, in the aggregate, could have a
material adverse effect on the financial condition of Borrower and/or any other Obligated Group Party with
respect to a Plan:  (i) a reportable
event shall occur with respect to a Plan which is, in the reasonable judgment
of the Bank, likely to result in the termination of such Plan for purposes of
Title IV of ERISA, or (ii) any Plan termination (or commencement of proceedings
to terminate a Plan) or the Borrower’s and/or
any other Obligated Group Party’s full or partial withdrawal from a
Plan; or

(o)           A default or Event of Default (as defined
in that document, subject to applicable notice and cure periods) occurs under any Guaranty, or any Guaranty
becomes unenforceable for any reason, or any Guarantor purports to revoke or
terminate its Guaranty; or

(p)           Borrower
or the Obligated Group or any Obligated Group Party, as the case may be, has
failed to timely deliver to Bank any Compliance Certificate or Borrowing Base
Certificate, or (i)

 29
 

fails to maintain at
least the minimum Fixed Charge Coverage Ratio required under Section 3.17, (ii) exceeds the maximum
Leverage Ratio required under Section 3.17,
or (iii) fails to maintain at least the minimum Tangible Net Worth required
under Section 3.17; or

(q)           Under
any Swap Contract, a default or an Event of Default (as defined in that
document, subject to applicable notice and cure periods) of Borrower occurs; or

(r)            After the closing of
the RE Loan, under any of the RE Loan Documents a default or an Event of
Default (as defined in that document, subject to applicable notice and cure
periods) occurs; or

(s)           Borrower
and/or any other Obligated Group Party fails
to comply with any provision contained in this Agreement, other than those
events specifically referred to above and thus set out as separate Events of
Default in this Section 6.1.

6.2          Remedies.

(a)           If an Event of Default
occurs under this Agreement, Bank may exercise any right or remedy under any of
the Loan Documents or otherwise available at law or in equity, and all of Bank’s
rights and remedies are cumulative.  If
any Event of Default occurs, Bank’s obligation to lend under the Loan Documents
automatically terminates, and Bank in its sole and absolute discretion may
withhold any one or more disbursements. 
Bank may also withhold any one or more disbursements after an Unmatured
Event of Default occurs and is continuing. 
By making any disbursement under any Credit Facility, Bank will not be
deemed to have waived any Event of Default unless Bank agrees otherwise in
writing in each instance.

(b)           If Borrower or any
other Obligated Group Party becomes the subject of any Insolvency Proceeding
(which, if an involuntary Insolvency Proceeding has not been (i) consented to
in writing by Bank, or (ii) dismissed within ninety (90) days of the filing
thereof), all of Borrower’s and the other Obligated Group Parties obligations
under the Loan Documents automatically become immediately due and payable upon
the filing of the petition commencing such proceeding, all without notice of
default, presentment or demand for payment, protest, or notice of nonpayment or
dishonor, or other notices or demands of any kind or character.  Upon the occurrence of any other Event of
Default, all of Borrower’s obligations under the Loan Documents may become due
and payable immediately without notice of default, presentment, or demand for
payment, protest, or notice of nonpayment or dishonor, or other notices or
demands of any kind or character, all at Bank’s option, exercisable in its sole
and absolute discretion.  If such
acceleration occurs, Bank may apply any undisbursed loan funds and any sums in
the Account (if any) to Borrower’s obligations under the Loan Documents, in any
order and proportions as Bank may determine in its sole and absolute
discretion.

(c)           As security for the payment
and performance of all obligations of Borrower and the other Obligated
Group Parties under the Loan Documents, Borrower hereby grants Bank a security
interest in, a lien on, and an express contractual right to set off against all
depository account balances, cash, and any other property of Borrower and the
other Obligated Group Parties now or hereafter in the possession of Bank and the
right to refuse to allow withdrawals from any account.  Without limiting the foregoing, the security
interest granted herein and the right of setoff granted to Bank hereunder is
intended to cover and include the Account. 
Bank may, at any time upon the occurrence of any default or Event of
Default or Unmatured Event of Default under this Agreement or any other Loan
Document, setoff against any amounts outstanding under any of the Credit
Facilities whether or not such Credit Facility or any portion thereof is then
due or has been accelerated, all without any advance or contemporaneous notice
of demand of any kind to Borrower or any other Obligated Group Party, such
notice and demand being expressly waived.

 30
 

7.             Waiver of Jury
Trial.  TO THE EXTENT NOT PROHIBITED
BY APPLICABLE LAW, BORROWER, AND TO THE EXTENT APPLICABLE, EACH OTHER OBLIGATED
PARTY, HEREBY KNOWINGLY, VOLUNTARILY, AND INTENTIONALLY WAIVES ANY RIGHT TO
TRIAL BY JURY OR OF ANY CLAIM, DEMAND, ACTION, OR CAUSE OF ACTION BASED UPON OR
ARISING UNDER THIS AGREEMENT OR ANY OF THE LOAN DOCUMENTS OR ANY OF THE
TRANSACTIONS CONTEMPLATED THEREIN, OR IN ANY WAY CONNECTED WITH OR RELATED OR
INCIDENTAL TO THE DISCUSSIONS, DEALINGS, OR ACTIONS OF THE PARTIES TO THIS
AGREEMENT OR EITHER OF THEM (WHETHER ORAL OR WRITTEN) WITH RESPECT THERETO, OR
TO THE TRANSACTIONS RELATED THERETO, IN EACH CASE WHETHER NOW EXISTING OR
HEREINAFTER ARISING, AT LAW OR IN EQUITY, INCLUDING WITHOUT LIMITATION,
CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW
OR STATUTORY CLAIMS.  BORROWER AND EACH
OTHER OBLIGATED PARTY, HEREBY CONSENTS AND AGREES THAT ANY SUCH CLAIM, DEMAND,
ACTION, OR CAUSE OF ACTION SHALL BE DECIDED BY A TRIAL COURT WITHOUT A JURY,
AND THAT EITHER PARTY TO THIS AGREEMENT MAY FILE AN ORIGINAL COUNTERPART OR A
COPY HEREOF WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF BORROWER AND
EACH OTHER OBLIGATED PARTY TO THE WAIVER OF ITS RIGHT TO TRIAL BY JURY.  BORROWER AND EACH OTHER OBLIGATED PARTY,
ACKNOWLEDGES AND AGREES THAT IT HAS RECEIVED FULL AND SUFFICIENT CONSIDERATION
FOR THIS PROVISION (AND EACH OTHER PROVISION OF THIS AGREEMENT AND EACH OTHER
DOCUMENT TO WHICH IT IS A PARTY) AND THAT THIS PROVISION IS A MATERIAL
INDUCEMENT FOR BANK IN MAKING THE LOANS. 
BORROWER AND EACH OTHER OBLIGATED PARTY FURTHER REPRESENTS AND WARRANTS
THAT IT HAS BEEN REPRESENTED IN THE SIGNING OF THIS AGREEMENT AND IN THE MAKING
OF THIS WAIVER BY INDEPENDENT LEGAL COUNSEL, OR HAS HAD THE OPPORTUNITY TO BE
REPRESENTED BY INDEPENDENT LEGAL COUNSEL SELECTED OF ITS OWN FREE WILL, AND
THAT IT HAS HAD THE OPPORTUNITY TO DISCUSS THIS WAIVER WITH COUNSEL.

8.             Miscellaneous
Provisions.

8.1          No Waiver; Consents.  Each waiver by Bank must be in writing, and
no waiver may be construed as a continuing waiver.  No waiver shall be implied from Bank’s delay
in exercising or failure to exercise any right or remedy against Borrower or
any other Obligated Party.  Bank’s
consent to any act or omission by Borrower or any other Obligated Party shall
not be construed as a consent to any other or subsequent act or omission or as
a waiver of the requirement for Bank’s consent to be obtained in any future or
other instance.  All Bank’s rights and
remedies are cumulative.

8.2          Standard for Bank
Approvals; Purpose and Effect of Bank Approval. Unless a different
standard is specifically prescribed, (a) all documents and items submitted to
Bank under this Agreement or under the other Loan Documents must be acceptable
to Bank in its sole and absolute discretion, and (b) consents and approvals by
Bank required under this Agreement or under the other Loan Documents shall be
in Bank’s sole and absolute discretion. 
Bank’s approval of any matter in connection with any Credit Facility is
for the sole purpose of protecting Bank’s and rights.  No such approval shall result in a waiver of
any default of Borrower or any other Obligated Party.  In no event shall Bank’s approval be a
representation of any kind with regard to the matter being approved.

8.3          No Third Parties
Benefited.  This Agreement is
made and entered into for the sole protection and benefit of Bank and Borrower
and their permitted successors and assigns. 
No trust fund is created by this Agreement, and no other persons or
entities have any right of action under this Agreement or any right to any
funds, credit, or financial accommodation under any Credit Facility.

8.4          Joint and Several
Liability.  If more than one
person or entity executes this Agreement as Borrower, each shall be jointly and
severally liable to Bank for the faithful performance of the obligations of
Borrower under this Agreement and the other Loan Documents.

 31
 

8.5          Notices.  All notices given under this Agreement shall
be in writing and be given by personal delivery, overnight receipted courier
(such as UPS, Airborne, or Federal Express) or by registered or certified
United States mail, postage prepaid, sent to the party at its address appearing
below its signature.  Notices shall be
effective upon the first to occur of receipt, when proper delivery is refused,
or the expiration of forty-eight (48) hours after deposit in registered or
certified United States mail as described above.  Addresses for notice may be changed by any
party by notice to any other party in accordance with this Section.  If more than one person or entity executes
this Agreement as Borrower, service of any notice on any one Borrower shall be
effective service on all Borrower parties for all purposes.

8.6          Actions.  Bank shall have the right, but not the
obligation, to commence, appear in, and defend any action or proceeding that
might affect its security or its rights, duties, or liabilities relating to the
Credit Facilities or any of the Loan Documents. 
Borrower shall pay promptly on demand all of Bank’s out-of-pocket costs,
expenses, and reasonable legal fees and expenses of Bank’s counsel incurred in
those actions or proceedings.

8.7          Attorneys’ Fees.  In any lawsuit or arbitration arising out of
or relating to this Agreement, the Loan Documents or any of the Credit
Facilities, the prevailing party will be entitled to recover from each other
party such sums as the court or arbitrator adjudges to be reasonable attorneys’
fees in the action or arbitration, in addition to costs and expenses otherwise
allowed by law.  In all other actions or
proceedings, including any matter arising out of or relating to any Insolvency
Proceeding, Borrower agrees to pay all of Bank’s costs and expenses, including
reasonable attorneys’ fees, incurred in enforcing or protecting Bank’s rights
or interests.  From the time(s) incurred
until paid in full to Bank, all such sums shall bear interest at the Default
Rate.  Whenever Borrower is obligated to
pay or reimburse Bank for any attorneys’ fees, those fees include the allocated
costs for services of in-house counsel, to the extent not prohibited by
applicable law.

8.8          Governing Law.  This Agreement shall be governed by, and
construed in accordance with, the laws of the State of Arizona, without regard
to the choice of law rules of that State, except to the extent that any of such
laws may now or hereafter be preempted by Federal law.  Borrower and each other Obligated Party
consents to the jurisdiction of any Federal or State court within the State of
Arizona, submits to venue in such state, and also consents to service of
process by any means authorized by Federal law or the law of such state.  Without
limiting the generality of the foregoing, Borrower and each other
Obligated Party hereby waives and agrees
not to assert by way of motion, defense, or otherwise in such suit, action, or
proceeding, any claim that (i) Borrower or any other Obligated Party is not subject to the jurisdiction of the courts
of the above-referenced state or the United States District Court for such
state, or (ii) such suit, action, or proceeding is brought in an inconvenient
forum, or (iii) the venue of such suit, action, or proceeding is improper.

8.9          Heirs, Successors,
and Assigns; Participations.  The
terms of this Agreement shall bind and benefit the heirs, legal
representatives, successors, and assigns of the parties; provided, however,
that Borrower may not assign this Agreement or any rights under any Credit
Facility, or assign or delegate any of its rights or obligations, without the
prior written consent of Bank in each instance. 
Bank in its sole and absolute discretion may sell or assign any Credit
Facility or participations or other interests in all or part of Credit Facility
on the terms and subject to the conditions of the Loan Documents, all without
notice to or the consent of Borrower or any other Obligated Party.  Also without notice to or the consent of
Borrower or any other Obligated Party, Bank or its affiliates may disclose to
any actual or prospective purchaser of any securities issued or to be issued by
Bank and to any actual or prospective purchaser or assignee of any
participation or other interest in any Credit Facility (whether under this
Agreement or otherwise), any financial or other information, data or material
in Bank’s possession relating to Borrower, any other Obligated Party, or any
Credit Facility.

 32
 

8.10        Relationships With
Other Bank Customers.  From time
to time, Bank may have business relationships with Borrower’s or any other
Obligated Party’s customers, suppliers, contractors, tenants, partners,
members, shareholders, officers, or directors, or with businesses offering
products or services similar to those of Borrower or any other Obligated Party,
or with persons seeking to invest in, borrow from, or lend to Borrower or any
other Obligated Party.  Borrower and each
other Obligated Party agrees that Bank may extend credit to such parties and
take any action it deems necessary to collect the credit, regardless of the
effect that such extension or collection of credit may have on Borrower’s or
any other Obligated Party’s financial condition or operations.  Borrower and each any other Obligated Party
further agrees that in no event shall Bank be obligated to disclose to Borrower
or any other Obligated Party any information concerning any other Bank customer.

8.11        Severability.  The invalidity or unenforceability of any one
or more provisions of this Agreement shall in no way affect any other
provision.  If any court of competent
jurisdiction determines any provision of this Agreement or any of the other Loan
Documents to be invalid, illegal or unenforceable, that portion shall be deemed
severed from the rest, which shall remain in full force and effect as though
the invalid, illegal or unenforceable portion had never been a part of the Loan
Documents.

8.12        Interpretation.  Whenever the context requires, all words used
in the singular shall be construed to have been used in the plural, and vice
versa, and each gender shall include any other gender.  The captions of the sections of this
Agreement are for convenience only and do not define or limit any terms or
provisions.  The word “include(s)” means “include(s),
without limitation,” and the word “including” means “including, but not limited
to.”  No listing of specific instances,
items or matters in any way limits the scope or generality of any language of
this Agreement.  Whenever any provision
of this Agreement, including any representation, covenant, or Event of Default
contained herein, applies to a guarantor, third party pledgor, or any other
party to any Loan Document other than Borrower or the other Obligated Parties,
such provision only applies to such party during the time that such party’s
guaranty, pledge, or other Loan Document, as applicable, remains in effect.

8.13        Amendments.  This Agreement may not be modified or amended
except by a written agreement signed by the party against whom enforcement is
sought.

8.14        Counterparts.  This Agreement and any attached consents or
exhibits requiring signatures may be executed in counterparts, and all
counterparts constitute but one and the same document.

8.15        Language of Agreement.  The language of this Agreement shall be
construed as a whole according to its fair meaning and not strictly for or
against any party.

8.16        Exchange of Information.  Borrower and each other Obligated Party
agrees that Bank may exchange or disclose financial and other information about
Borrower and any other Obligated Party with or to any of Bank’s affiliates or
other related entities and with any party that acquires a participation or
other interest in all or part of any Credit Facility.

8.17        Survival.  The representations, warranties,
acknowledgments, and agreements set forth herein shall survive the date of this
Agreement.

8.18        Further Performance.  Borrower and each other Obligated Party,
whenever and as often as they shall be requested by Bank, shall execute,
acknowledge, and deliver, or cause to be executed, acknowledged, and delivered
to Bank, such further instruments and documents, and do any and all things as
may be requested, in order to carry out the intent and purpose of this
Agreement and the other Loan Documents.

 33
 

8.19        Time is of the Essence.  Time is of the essence in the performance of
this Agreement and the other Loan Documents by Borrower and each other
Obligated Party, and each and every term thereof.

8.20        Recitals.  The recitals to this Agreement set forth
above in the “Factual Background” are true, complete, accurate, and correct,
and such recitals are incorporated hereby by reference.

8.21        Loan Commission.  Except as otherwise agreed in writing by
Bank:  (a) Bank shall not be obligated to
pay any brokerage commission or fee in connection with or arising out of any
Credit Facility, and (b) Borrower shall pay any and all brokerage commissions
or fees arising out of or in connection with the Credit Facilities.

8.22        Patriot Act Provisions.  The following notification is provided to
Borrower pursuant to Section 326 of the USA Patriot Act of 2001, 31 U.S.C.
Section 5318 (as such maybe amended or recodified from time to time, the “Patriot
Act”):

(a)           Important Information
About Procedures for Opening a New Account. 
To help the government fight the funding of terrorism and money
laundering activities, federal law requires all financial institutions to
obtain, verify, and record information that identifies each person or entity
that opens an account, including any deposit account, treasury management
account, loan, other extension of credit, or other financial services
product.  Borrower is hereby notified
that when Borrower opens an account, including but not limited to any Account,
that may be required pursuant to the terms of this Agreement, (i) if Borrower
is not an individual, Bank will ask for Borrower’s name, taxpayer
identification number, business address, and other information that will allow
Bank to identify Borrower, and may also ask to see Borrower’s legal
organizational documents or other identifying documents, and (ii) if Borrower
is an individual, Bank will ask for Borrower’s name, taxpayer identification
number, residential address, date of birth, and other information that will
allow Bank to identify Borrower, and may also ask to see Borrower’s driver’s
license or other identifying documents.

(b)           Government
Regulation.  Borrower shall not (i)
be or become subject at any time to any law, regulation, or list of any
government agency (including, without limitation, the U.S. Office of Foreign
Asset Control list) that prohibits or limits Bank from making any advance or
extension of credit to Borrower or from otherwise conducting business with
Borrower, or (ii) fail to provide documentary and other evidence of Borrower’s
identity as may be requested by Bank at any time to enable Bank to verify
Borrower’s identity or to comply with any applicable law or regulation,
including, without limitation, Section 326 of the Patriot Act.

8.23        Integration and
Relation to Loan Commitment.  The
Loan Documents (a) integrate all the terms and conditions mentioned in or
incidental to this Agreement, (b) supersede all oral negotiations and prior
writings with respect to their subject matter, including Bank’s loan commitment
to Borrower, and (c) are intended by the parties as the final expression
of the agreement with respect to the terms and conditions set forth in those
documents and as the complete and exclusive statement of the terms agreed to by
the parties.  No representation,
understanding, promise or condition shall be enforceable against any party
unless it is contained in the Loan Documents. 
If there is any conflict between the terms, conditions and provisions of
this Agreement and those of any other agreement or instrument, including any
other Loan Document, the terms, conditions and provisions of this Agreement
shall prevail.

(Remainder of page intentionally
left blank.

See the following pages for signatories.)

 34
 

IN WITNESS
WHEREOF, Borrower and Bank have executed this Agreement as of
the date first above written.

“BORROWER”

	
  THE INVENTURE GROUP, INC.,

  a Delaware corporation

  	
   

  	
  Address for notices to
  Borrower:  

  
	
   

  	
   

  	
  The Inventure Group, Inc.

  
	
   

  	
   

  	
  5050 N. 40th Street,
  Suite 300

  
	
  By:

  	
  /s/ Steve Weinberger

  	
   

  	
  Phoenix, Arizona 85018

  
	
  Name:

  	
  Steve Weinberger

  	
   

  	
  Attention: Steve Weinberger

  
	
  Title:

  	
  CFO

  	
   

  	
   

  
						

 

(Remainder of page intentionally
left blank.

See the following pages for additional signatories.)

 35
 

“BANK”

	
  U.S. BANK NATIONAL ASSOCIATION,

  a national banking association

  	
   

  	
  Address for notices to Bank:

  
	
   

  	
   

  	
  U.S. Bank National
  Association

  
	
   

  	
   

  	
  101 North First Avenue, Suite

  
	
   By:

  	
  /s/ Timothy Coffey 

  	
   

  	
  1600 Phoenix, AZ 85003

  
	
   

  	
  Timothy Coffey,
  Vice President

  	
   

  	
  Attention: Commercial Banking

  

 

(Remainder of page intentionally
left blank.

See the following pages for Obligated Group’s signatories.)

 36
 

ACKNOWLEDGED
AND AGREED TO THIS

16th DAY OF May, 2007:

“OBLIGATED GROUP”

	
  BN FOODS, INC., a
  Colorado corporation

  	
   

  	
  Address for notices to PBC:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  BN Foods, Inc.

  
	
  By:

  	
  /s/ Steve Weinberger 

  	
   

  	
  c/o The Inventure Group,
  Inc.

  
	
  Name:

  	
  Steve Weinberger 

  	
   

  	
  5050 N. 40TH Street, Suite 300

  
	
  Title:

  	
  CFO

  	
   

  	
  Phoenix, AZ 85018

  
	
   

  	
   

  	
  Attention: Steve Weinberger

  
	
  BOULDER NATURAL FOODS, INC.,

  an Arizona corporation

  	
   

  	
  Address for notices to
  Boulder:

  
	
   

  	
   

  	
  Boulder Natural Foods, Inc.

  
	
   

  	
   

  	
  c/o The Inventure Group,
  Inc.

  
	
  By:

  	
  /s/ Steve Weinberger

  	
   

  	
  5050 N. 40TH Street, Suite 

  
	
  Name:

  	
  Steve Weinberger

  	
   

  	
  300Phoenix, AZ 85018

  
	
  Title:

  	
  CFO

  	
   

  	
  Attention: Steve Weinberger

  
	
   

  	
   

  	
   

  
	
  LA COMETA PROPERTIES, INC., an Arizona corporation

  	
   

  	
  Address for notices to La
  Cometa:  

  
	
   

  	
   

  	
  Poore Brothers - Bluffton, LLC

  
	
   

  	
   

  	
  c/o The Inventure Group,
  Inc.

  
	
  By:

  	
  /s/ Steve Weinberger 

  	
   

  	
  5050 N. 40TH Street, Suite 300

  
	
  Name:

  	
  Steve Weinberger 

  	
   

  	
  Phoenix, AZ 85018

  
	
  Title:

  	
  CFO

  	
   

  	
  Attention: Steve Weinberger

  
	
   

  	
   

  	
   

  
	
  POORE BROTHERS - BLUFFTON, LLC,

  a Delaware limited liability company

  	
   

  	
  Address for notices to PBC:

  
	
   

  	
   

  	
  Poore Brothers - Bluffton, LLC

  
	
   

  	
   

  	
  c/o The Inventure Group,
  Inc.

  
	
  By:

  	
  /s/ Steve Weinberger

  	
   

  	
  5050 N. 40TH Street, Suite 300

  
	
  Name:

  	
  Steve Weinberger

  	
   

  	
  Phoenix, AZ 85018

  
	
  Title:

  	
  CFO

  	
   

  	
  Attention: Steve Weinberger

  
	
   

  	
   

  	
   

  
	
  RADER FARMS ACQUISITION CORP.,

  a Delaware corporation

  	
   

  	
  Address for notices to Rader:

  
	
   

  	
   

  	
  Poore Brothers - Bluffton, LLC

  
	
   

  	
   

  	
  c/o The Inventure Group,
  Inc.

  
	
  By:

  	
  /s/ Steve Weinberger

  	
   

  	
  5050 N. 40TH Street, Suite 300

  
	
  Name:

  	
  Steve Weinberger

  	
   

  	
  Phoenix, AZ 85018

  
	
  Title:

  	
  CFO

  	
   

  	
  Attention: Steve Weinberger

  
	
   

  	
   

  	
   

  
	
  TEJAS PB DISTRIBUTING, INC.,

  an Arizona corporation  

  	
   

  	
  Address for notices to Tejas:

  
	
   

  	
   

  	
  Tejas PB Distributing, Inc. 

  
	
   

  	
   

  	
  c/o The Inventure Group,
  Inc. 

  
	
  By:

  	
  /s/ Steve Weinberger

  	
   

  	
  5050 N. 40TH Street, Suite 300 

  
	
  Name:

  	
  Steve Weinberger

  	
   

  	
  Phoenix, AZ 85018 

  
	
  Title:

  	
  CFO

  	
   

  	
  Attention: Steve Weinberger

  
														

 

 37

EXHIBIT A

COMPLIANCE CERTIFICATE

 The
undersigned, being the being the Chief Financial Officer and Treasurer of THE INVENTURE GROUP, INC., a Delaware corporation (the “Borrower”)
hereby certifies to U.S. BANK NATIONAL
ASSOCIATION, a national banking association (the “Bank”) for itself
and each of the other Obligated Group Parties, as follows:

1.             This certificate
(the “Compliance Certificate”) is being provided pursuant to Section 3.5 of that certain loan
agreement (the “Loan Agreement”) dated as of May 16, 2007, by and between Bank
and Borrower, made with the acknowledgment and agreement of the other Obligated
Group Parties.  All capitalized terms not
otherwise defined herein shall have the meanings set forth in the Loan
Agreement.

2.             As of the effective
date set forth below, the undersigned has no knowledge of any event which
constitutes, or which, with the giving of notice or the passage of time, or
both, would constitute a default or an Event of Default under any of the Loan
Documents.

3.             As of the effective date set forth below, the financial condition of Borrower, and each other Obligated Group Party, remains essentially the same as it was the date
of the last financial statement submitted by Borrower to Bank and that no material adverse change has
occurred in the financial condition of Borrower or the other Obligated Group
Parties that affects the any collateral securing the Credit Facilities or
Borrower’s or any Obligated Group Party’s ability to repay any of the Credit Facilities pursuant to the terms of
the Loan Documents.

4.             As of the effective date set forth below, the Obligated
Group is in compliance with the financial covenants set forth in the Loan
Agreement, including the minimum Fixed Charge Coverage Ratio, maximum Leverage
Ratio, and minimum Tangible Net Worth requirements set forth in Section 3.17 of the Loan
Agreement.  Upon the request of Bank,
Borrower shall provide financial covenant analyses and information in form and
substance acceptable to Bank showing Borrower’s compliance with the financial
covenants set forth in the Loan Agreement, which shall be true and accurate on
and as of the effective date of this Compliance Certificate.

5.             As of the effective date set
forth below, neither Borrower nor any other Obligated Group Party has any claim
against Bank, or any defenses or
offsets to payment of any Credit Facility or any other amounts due under the
Loan Documents.

6.             As of the effective date set forth below, the
representations and warranties contained in the Loan Agreement and the other Loan
Documents are true and correct in all material respects as of the date of this
Certificate to the same extent as though made on and as of such date, except to
the extent such representations and warranties specifically relate to an
earlier date.

 1
 

IN WITNESS
WHEREOF, this Certificate has been executed to be effective
as of                           ,
2007.

“BORROWER”

	
  THE INVENTURE GROUP, INC., 

  	
   

  	
  Address for notices to
  Borrower: 

  
	
  a Delaware corporation 

  	
   

  	
   

  
	
   

  	
   

  	
  The Inventure Group, Inc. 

  
	
   

  	
   

  	
  5050 N. 40th Street,
  Suite 300 

  
	
  By: 

  	
   

  	
   

  	
  Phoenix, Arizona 85018 

  
	
  Name: 

  	
   

  	
   

  	
  Attention: Steve Weinberger

  
	
  Title:

  	
   

  	
   

  	
   

  
						

 

 2

Exhibit B

Borrower Base Certificate

Consolidated
Company - Inventure Group

MONTH-END
COLLATERAL CERTIFICATE

Month Ending:

3/31/2007

	
  ACCOUNTS RECEIVABLE

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1)

  	
   

  	
  Beginning of month
  aging balance:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  7,415,120.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2)

  	
   

  	
  (ADD)

  	
  Gross sales per sales
  journal Includes Cash sales $ 

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  12,819,992.52

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3)

  	
   

  	
  (MINUS)

  	
  Sales
  Adjustments, Credit Memos, Misc Journal Adjustments

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  608,599.86

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4)

  	
   

  	
  (MINUS)

  	
  Cash receipts per cash
  receipts journal

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  11,637,406.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5)

  	
   

  	
  (ADD)

  	
  Debit memos, returned
  checks or other adjustments

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  0.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5a)

  	
   

  	
  End of month aging
  balance:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  7,989,106.66

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6)

  	
   

  	
  General Ledger balance:

  	
   

  	
  $

  	
  7,989,107

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7)

  	
   

  	
  (MINUS) 

  	
  INELIGIBLES

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  1,545,414.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ELIGIBLE ACCOUNTS RECEIVABLE: (Line 6
  minus Line 7 @ advance rate):

  	
   

  	
   

  	
   

  	
  80

  	
  %

  	
  $

  	
  5,154,954.13

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  (Advance rate)

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8)

  	
   

  	
  Consolidated Inventory
  Month End Balance

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  8,736,325.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8a)

  	
   

  	
  General Ledger
  Inventory Balance

  	
   

  	
  $

  	
  8,736,325

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9)

  	
   

  	
  INELIGIBLE INVENTORY

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  727,801.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10)

  	
   

  	
  ELIGIBLE INVENTORY:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  8,008,524.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  11)

  	
   

  	
  ELIGIBLE INVENTOR AFTER REQUIRED ADVANCE RATES

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  4,892,967.20

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  12)

  	
   

  	
  AVAILABILITY VIA MACHINERY, EQUIPMENT AND
  GROWING PLANTS

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  2,000,000.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  13)

  	
   

  	
  BBC AVAILABILITY

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  12,047,921.33

  	
   

  

 

 1
 

 

	
  14)

  	
   

  	
  GROWERS LIENS & OTHER LIENS (PERISHABLE
  AGRICULTURAL COMMODITIES ACT)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  1,860,000.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  13)

  	
   

  	
  CONSOLIDATED BBC AVAILABILITY

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  10,187,921.33

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LOAN DETAIL

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  14)

  	
   

  	
  Line of Credit
  Outstanding:

  	
   

  	
   

  	
   

  	
  $

  	
  0.00

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Commercial Letters of
  Credit (100%)

  	
   

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Standby Letters of
  Credit (100%)

  	
   

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Standby IDB - (100%)

  	
   

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Other Loans (Reserved
  under Base)

  	
   

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  15)

  	
   

  	
  TOTAL LOANS OUTSTANDING: (Sum
  of Loan Detail)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  0.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  16)

  	
   

  	
  REMAINING AVAILABLE: (Line
  12 minus Line 14)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  10,187,921.33

  	
   

  

 

The undersigned represents and warrants that:

The foregoing information is true, complete and correct, and that the
collateral, designated as eligible, hereby complies fully with the conditions,
terms, warranties, representations and covenants set forth in the Loan
Agreement (“Agreement”) between the undersigned and U.S. Bank (“Lender”).

COMPUTATION OF INELIGIBLES

	
  Consolidated Company - Inventure Group

  	
   

  	
   

  	
   

  	
   

  
	
  Borrower

  	
   

  	
  Authorized
  signature

  	
   

  	
  Date

  

 

 2

Exhibit C

FEE AND RATE SCHEDULE

	
   

  	
   

  	
  Tier 1

  	
   

  	
  Tier 2

  	
   

  	
  Tier 3

  	
   

  	
  Tier 4

  	
   

  	
  Tier 5

  	
   

  
	
  Total Funded Debt / 

  	
   

  	
  <=
  1.0

  	
   

  	
  >1.0<=1.5

  	
   

  	
  >1.5<=2.25

  	
   

  	
  >2.25<=3.00

  	
   

  	
  >3.00

  	
   

  
	
  EBITDA

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  LIBOR Margin

  	
   

  	
  95
  bps

  	
   

  	
  125
  bps

  	
   

  	
  145
  bps

  	
   

  	
  165
  bps

  	
   

  	
  210
  bps

  	
   

  
	
  Base Rate Margin

  	
   

  	
  0
  bps

  	
   

  	
  0
  bps

  	
   

  	
  0
  bps

  	
   

  	
  0
  bps

  	
   

  	
  0
  bps

  	
   

  
	
  Unused Fee

  	
   

  	
  12.5bps

  	
   

  	
  12.5
  bps

  	
   

  	
  15
  bps

  	
   

  	
  15
  bps

  	
   

  	
  20
  bps

  	
   

  
	
  Letter of Credit Fee

  	
   

  	
  95 bps

  	
   

  	
  125 bps

  	
   

  	
  145 bps

  	
   

  	
  165 bps

  	
   

  	
  210 bps

  	
   

  

 

 1

Exhibit D

Approved Existing
Liens

1.                                       CNH
Capital American, LLC, secured by two (2) Korvan pickers, Model # 9000R, Serial
# 01023 and Serial # 01024.

2.                                       Toyota
Motor Credit Corp., secured by one (1) Toyota Fork Lift Model 7FBCU25, Serial
#67279.

3.                                       Trinity
Lease, secured by one (1) 2006 53 foot reefer unit (semi trailer).

 1Exhibit 10.4

PROMISSORY NOTE

(Facility
1 - Revolving Line of Credit  Loan)

	
  $15,000,000.00

  	
   

  	
  May 16, 2007

  	
   

  	
  Phoenix, Arizona

  

 

1.             Borrower’s Promise
To Pay.

FOR
VALUE RECEIVED, THE INVENTURE GROUP, INC., a
Delaware corporation (the
“Borrower”), promises to pay to the order of U.S. BANK
NATIONAL ASSOCIATION, a
national banking association (the “Bank”), at 101 N. First Avenue, Suite 1600, Phoenix, Arizona  85003, Attention:  Commercial Banking,
or at such other place as the holder of this Note may from time to time
designate, the principal sum of Fifteen Million and No/100 Dollars
($15,000,000.00) (“Maximum Loan Amount”), or such lesser amount as may be
advanced and outstanding under this promissory note (the “Note”), plus interest
as specified in this Note.  Bank shall
not be required to make any advance if that would cause the outstanding
principal of this Note to exceed the Maximum Loan Amount.  This Note
evidences a revolving line of
credit  loan (“Loan”) made by Bank to
Borrower pursuant to the terms of a loan agreement (the “Loan Agreement”)
between Bank and Borrower of even date herewith.  During
the availability period described in the Loan Agreement, Borrower may repay
principal amounts and reborrow them upon the terms and conditions set forth in
the Loan Agreement.

This Note is secured by a certain Security Agreement (Blanket - All Business Assets) being
executed by Borrower in favor of Bank dated of even date herewith (the “Security
Agreement”) and may be secured by other collateral.  This Note and the Loan
Agreement, together with all other documents which evidence, guaranty, secure,
or otherwise pertain to the Loan collectively constitute the “Loan Documents.”  Some or
all of the Loan Documents, including the Loan Agreement, contain provisions for
the acceleration of the maturity of this Note. 
This Note is subject to the terms and conditions of the Loan
Agreement.  Capitalized terms used but
not defined herein shall have the meanings set forth in the Loan Agreement.

2.             Maturity Date.  All
principal and all accrued and unpaid interest and other sums due hereunder
shall be due and payable on June 30, 2011
(the “Maturity Date”).

3.             Interest Rate and
Payment Terms.

3.1           Interest Rate.  Interest on each advance hereunder shall
accrue at one of the following per annum rates selected by Borrower  (i) upon notice to Bank, zero percent (0%) (0
basis points) plus the
prime rate announced by Bank from time to time, as and when such rate changes
(a “Prime Rate Loan”); or (ii) upon a minimum of two New York Banking Days
prior notice, the LIBOR Rate Margin (as such term is defined below) plus
the 1, 2, 3, 6 or 12 month LIBOR rate quoted by Bank from Reuters Screen
LIBOR01 Page or any successor thereto (which shall be the LIBOR rate in effect
two New York Banking Days prior to commencement of the advance), adjusted for
any reserve requirement and any subsequent costs arising from a change in
government regulation (a “LIBOR Rate Loan”). 
The term “New York Banking Day” means any day (other than a Saturday or
Sunday) on which commercial banks are open for business in New York, New
York.  The term “Money Markets” refers to
one or more wholesale funding markets available to and selected by Bank,
including negotiable certificates of deposit, commercial paper, eurodollar
deposits, bank notes, federal funds, interest rate swaps or others.  The term “LIBOR Rate Margin” means (A)
through and including November 15, 2007,
one and sixty-five hundredths percent (1.65%) (165 basis points), and (B)
thereafter the tiered LIBOR Rate Margin determined
in accordance with the Fee and Rate Schedule attached as Exhibit C to the Loan Agreement,
adjusted quarterly, as determined by Bank, based upon Bank’s testing of the
Leverage Ratio (as such term is defined in the Loan Agreement) in accordance
with the terms of the Loan Agreement.

 1
 

In the event Borrower
does not timely select another interest rate option at least two New York
Banking Days before the end of the Loan Period for a LIBOR Rate Loan, Bank may
at any time after the end of the Loan Period convert the LIBOR Rate Loan to a
Prime Rate Loan, but until such conversion, the funds advanced under the LIBOR
Rate Loan shall continue to accrue interest at the same rate as the interest
rate in effect for such LIBOR Rate Loan prior to the end of the Loan
Period.  The term “Loan Period” means the
period commencing on the advance date of the applicable LIBOR Rate Loan and
ending on the numerically corresponding day 1, 2, 3, 6 or 12 months thereafter
matching the interest rate term selected by Borrower; provided, however, (a) if
any Loan Period would otherwise end on a day which is not a New York Banking
Day, then the Loan Period shall end on the next succeeding New York Banking Day
unless the next succeeding New York Banking Day falls in another calendar
month, in which case the Loan Period shall end on the immediately preceding New
York Banking Day; or (b) if any Loan Period begins on the last New York Banking
Day of a calendar month (or on a day for which there is no numerically corresponding
day in the calendar month at the end of the Loan Period), then the Loan Period
shall end on the last New York Banking Day of the calendar month at the end of
such Loan Period.

No LIBOR Rate Loan may
extend beyond the maturity of this Note. 
In any event, if the Loan Period for a LIBOR Rate Loan should happen to
extend beyond the maturity of this Note, such loan must be prepaid at the time
this Note matures.  Bank’s internal
records of applicable interest rates shall be determinative in the absence of
manifest error.  Each LIBOR Rate Loan
shall be in a minimum principal amount of Five Hundred Thousand and No/100 Dollars ($500,000.00).

The aggregate number of
LIBOR Rate Loans in effect at any one time may not exceed three (3).

If a LIBOR Rate Loan is prepaid
prior to the end of the Loan Period, as defined above, for such loan, whether
voluntarily or because prepayment is required due to this Note maturing or due
to acceleration of this Note upon default or otherwise, Borrower agrees to pay
all of Bank’s costs, expenses and Interest Differential (as determined by Bank)
incurred as a result of such prepayment. 
The term “Interest Differential” shall mean that sum equal to the
greater of zero or the financial loss incurred by Bank resulting from
prepayment, calculated as the difference between the amount of interest Bank
would have earned (from like investments in the Money Markets as of the first
day of the LIBOR Rate Loan) had prepayment not occurred and the interest Bank
will actually earn (from like investments in the Money Markets as of the date
of prepayment) as a result of the redeployment of funds from the
prepayment.  Because of the short-term
nature of this facility, Borrower agrees that the Interest Differential shall
not be discounted to its present value. 
Any prepayment of a LIBOR Rate Loan shall be in an amount equal to the
remaining entire principal balance of such loan.

3.2          Separate
Principal Plus Interest Payments.

(a)           Interest
Payments.  Interest
is payable beginning July 1, 2007, and on the same date of each CONSECUTIVE month
thereafter, with a final interest payment with the final payment of principal.

(b)           Principal Payment on Maturity Date.  If
not sooner paid, all principal shall be due
and payable on the Maturity
Date.

3.3          Principal Prepayments.  Borrower may prepay some or all of the
principal under any Prime Rate Loan, from time to time, without payment of any
prepayment premium or fee.  Any
prepayment of some or all of the principal under any LIBOR Rate Loan is subject
to the terms and conditions set forth in Section 3.1
above.

 2
 

4.             General Interest
and Payment Terms.

4.1          Note Rate.  The interest rate in effect from time to time
under this note is herein referred to as the “Note Rate.”

4.2          Effective
Contracted Rate.  Borrower agrees to pay an effective contracted
for rate of interest equal to the rate of interest resulting from all interest
payable as provided in this Note plus the additional rate of interest
resulting from (a) any loan or facility fee(s) or other similar fees described or
defined in the Loan Documents, and (b) all Other Sums.  For purposes hereof, the “Other Sums” shall
mean all fees, charges, goods, things in action, or any other sums or things of
value (other than interest payable as provided in this Note and any loan or
facility fee) paid or payable by Borrower, whether pursuant to this Note, any
of the other Loan Documents, or any other document or instrument in any way
pertaining to this lending transaction, that may be deemed to be interest for
the purpose of any law of the State of Arizona, or any other applicable
law, that may limit the maximum amount of
interest to be charged with respect to this lending transaction.  The Other Sums shall be deemed to be interest
and part of the “contracted for rate of interest” for the purposes of any such
law only.

4.3          Usury
Savings Clause.  It is
expressly stipulated and agreed to be the intent of Borrower and Bank at all
times to comply with applicable state law or applicable United States federal
law (to the extent that it permits Bank to contract for, charge, take, reserve,
or receive greater amount of interest than under state law) and that this
Section shall control every other covenant and agreement in this Note and the
other Loan Documents.  If applicable
state or federal law should at any time be judicially interpreted so as to
render usurious any amount charged, taken, reserved, or received with respect
to the Loan, or if Bank’s exercise of the option to accelerate the Maturity
Date, or if any prepayment by Borrower, results in Borrower having paid any
interest in excess of that permitted by applicable law, then it is Bank’s
express intent that all such excess amounts theretofore collected by Bank shall
be credited to the principal balance of this Note and all other indebtedness,
and that the provisions of this Note and the other Loan Documents shall
immediately be deemed reformed and the amounts thereafter collectible hereunder
and thereunder reduced, without the necessity of the execution of any new
documents, so as to comply with the applicable law, but so as to permit the
recovery of the fullest amount otherwise called for hereunder or
thereunder.  All sums paid or agreed to
be paid to Bank for the use, forbearance, or detention of the Loan shall, to
the extent not prohibited by applicable law, be amortized, prorated, allocated,
and spread throughout the full stated term of the Loan until payment in full so
that the rate or amount of interest on account of the Loan does not exceed the
maximum lawful rate from time to time in effect and applicable to the Loan for
so long as the Loan is outstanding.

4.4          Calculation
of Interest.  Interest
will be computed for the actual days elapsed on the basis of a three hundred
sixty (360) day year, which results in more interest than if a three hundred
sixty-five (365) day year method were used.

4.5          Payments.  Except as otherwise provided herein, all amounts payable under this Note are payable in
lawful money of the United States during normal business hours on a Banking
Day.  For purposes hereof, “Banking Day”
means a day, other than a Saturday or Sunday, on which Bank is open for
business for all banking functions in Phoenix,
Arizona.  Checks and drafts constitute
payment only when collected.  All
payments made under this Note shall be made without offset, demand,
counter-claim, deduction or recoupment (each of which is hereby waived), and
acceptance by Bank of any payment in an amount less than the amount then due
shall be deemed an acceptance on account only, notwithstanding any notation on
or accompanying such partial payment to the contrary, and shall not constitute
a waiver by Bank of any Event of Default. 
Except as otherwise set forth herein or in any other Loan Document,
payments shall be applied in such order and manner as Bank may determine in its
sole and absolute discretion.

 3
 

5.             Late Payments;
Default Rate

5.1          Late Charge for
Overdue Payments. If Bank has not received the full amount of any payment scheduled to be made under this Note,
other than the final principal payment, by the end of ten (10) calendar
days after the date it is due, Borrower shall pay a late charge to Bank in the
amount of five percent (5%) of the overdue payment; provided, however,
in no event shall any late charge be payable hereunder without Bank first having
provided Borrower with any notice required by applicable law.  Borrower shall pay this late charge only once
on any late payment.  This late charge
shall not be construed as in any way extending the due date of any payment, and
is in addition to, and not in lieu of, any other remedy Bank may have.

5.2          Default Rate.
Upon the occurrence of any Event of Default
(subject to any applicable notice and cure periods), the unpaid balance
of the Loan shall bear interest at the rate which is five percent (5%) above
the then applicable Note Rate as it may thereafter change pursuant to the terms
of this Note (the “Default Rate”). 
Additionally, from and after the Maturity Date, or such earlier date as
all sums owing on this Note become due and payable by acceleration or
otherwise, the Loan shall bear interest at the Default Rate.  Accrued interest, at the Note Rate, if not
paid when due, shall accrue interest at the Default Rate, as hereinabove
provided, which may result in compounding of interest.  Except as
otherwise set forth herein or in any other Loan Document, payments under
this Note or under any other Loan Document that are due on demand, shall bear
interest at the Default Rate (i) from the date costs or expenses are incurred
by Bank that give rise to the demand or (ii) if there is no such date, then
from the date of demand, until Borrower pays the full amount of such payment,
including interest.

6.             Events of Default.  If any of the following “Events of Default”
occur, any obligation of the holder to make advances under this Note terminates
and, at the holder’s option, exercisable in its sole and absolute discretion,
all sums of principal and interest under this note immediately become due and
payable without notice of default, presentment, demand for payment, protest, or
notice of nonpayment or dishonor, or other notices or demands of any kind or
character:

6.1          Borrower fails to
perform any obligation under this Note to pay principal or interest within ten
(10) days after the date when due; or

6.2          Borrower fails to
perform any other obligation under this Note to pay money within ten (10) days
after the date when due; or

6.3          Under any of the
Loan Documents, a default or Event of Default occurs, except as provided in Section 7 below.

7.             Insolvency.  It is an “Event of Default” under this Note
if Borrower becomes the subject of any bankruptcy or other voluntary or
involuntary proceeding, in or out of court, for the adjustment of
debtor-creditor relationships (“Insolvency Proceeding”), and as to any
involuntary Insolvency Proceeding, it either: (i) is consented to or (ii) has
not been dismissed within ninety (90) days. 
Upon such an Event of Default, all sums of principal and interest under
this Note automatically become immediately due and payable without notice of
default, presentment or demand for payment, protest or notice of nonpayment or
dishonor, or other notices or demands of any kind or character.  If Borrower becomes the subject of any
Insolvency Proceeding, any obligation of the holder to make advances under this
Note shall automatically terminate, and in the case of an involuntary
Insolvency Proceeding which is dismissed within ninety (90) days, the holder’s
obligation to make advances under this Note shall resume upon the dismissal
thereof.

8.             Waiver of Jury Trial.  TO THE EXTENT NOT PROHIBITED BY APPLICABLE
LAW, BORROWER WAIVES TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO WHICH
BORROWER AND BANK MAY BE PARTIES, ARISING OUT OF, IN CONNECTION WITH OR IN ANY
WAY 

 4
 

PERTAINING TO, THIS NOTE,
THE LOAN AGREEMENT, OR ANY OF THE OTHER LOAN DOCUMENTS.  IT IS AGREED AND UNDERSTOOD THAT THIS WAIVER
CONSTITUTES A WAIVER OF TRIAL BY JURY OF ALL CLAIMS AGAINST ALL PARTIES TO SUCH
ACTION OR PROCEEDINGS, INCLUDING CLAIMS AGAINST PARTIES WHO ARE NOT PARTIES TO
THIS NOTE.  THIS WAIVER IS KNOWINGLY,
WILLINGLY AND VOLUNTARILY MADE BY BORROWER, AND BORROWER HEREBY REPRESENTS THAT
NO REPRESENTATIONS OF FACT OR OPINION HAVE BEEN MADE BY ANY INDIVIDUAL TO
INDUCE THIS WAIVER OF TRIAL BY JURY OR TO IN ANY WAY MODIFY OR NULLIFY ITS
EFFECT.  BORROWER FURTHER REPRESENTS AND
WARRANTS THAT IT HAS BEEN REPRESENTED IN THE SIGNING OF THIS NOTE AND IN THE
MAKING OF THIS WAIVER BY INDEPENDENT LEGAL COUNSEL, OR HAS HAD THE OPPORTUNITY
TO BE REPRESENTED BY INDEPENDENT LEGAL COUNSEL SELECTED OF ITS OWN FREE WILL,
AND THAT IT HAS HAD THE OPPORTUNITY TO DISCUSS THIS WAIVER WITH COUNSEL.

9.             Miscellaneous.

9.1          Waivers.  Borrower hereby waives presentment, demand,
notice of dishonor, notice of default or delinquency, notice of acceleration,
notice of nonpayment, notice of costs, expenses, or losses and interest
thereon; and notice of interest on interest and late charges.

9.2          Delay In Enforcement.  If Bank delays in exercising or fails to
exercise any of its rights under this Note, that delay or failure does not
constitute a waiver of any of Bank’s rights, or of any breach, default or
failure of condition of or under this Note. 
No waiver by Bank of any of its rights, or of any breach, default or
failure of condition is effective, unless the waiver is expressly stated in
writing by Bank.

9.3          Joint and Several
Liability.  If more than one
person or entity is signing this Note as Borrower, their obligations under this
Note shall be joint and several.   As to
any Borrower that is a partnership, the obligations of Borrower under this Note
are the joint and several obligations of each general partner thereof.  Any married person signing this Note agrees
that recourse may be had against community property assets and against his or
her separate property for the satisfaction of all obligations contained herein.

9.4          Heirs, Successors,
and Assigns; Participations. 
This Note inures to and binds the heirs, legal representatives,
successors and assigns of Borrower and Bank; provided, however,
Borrower may not assign this Note or any Loan funds, or assign or delegate any
of its rights or obligations, without the prior written consent of Bank in each
instance, which consent is at the sole and absolute discretion of Bank.  Bank, in its sole and absolute discretion,
may transfer this Note, and may sell or assign participations or other
interests in all or part of the Loan, on the terms and subject to the
conditions of the Loan Documents, all without notice to or the consent of
Borrower.  Without notice to or the
consent of Borrower, Bank may disclose to any actual or prospective purchaser
of any securities issued or to be issued by Bank or its affiliates, and to any
actual or prospective purchaser or assignee of any participation or other
interest in this Note, the Loan, or any other loans made by Bank to Borrower
(whether evidenced by this Note or otherwise), any financial or other
information, data or material in Bank’s possession relating to Borrower, or the
Loan.  If Bank so requests, Borrower
shall sign and deliver a new note, in the form and substance of this Note, to
be issued in exchange for this Note.

9.5          Cumulative Remedies.  All of Bank’s remedies in connection with
this Note or under applicable law are cumulative, and Bank’s exercise of any
one or more of those remedies shall not constitute an election of remedies.

9.6          Governing Law.  This Note shall be governed by, and construed
in accordance with, the laws of the State of Arizona, without regard to the
choice of law rules of that State, except to the extent that any of such laws
may now or hereafter be preempted by Federal law.  Borrower consents to the jurisdiction of any
Federal or State court within the State of Arizona, submits to venue in such
state, and 

 5
 

also consents to service
of process by any means authorized by Federal law or the law of such
state.  Without
limiting the generality of the foregoing, Borrower hereby waives and agrees not to assert by way of
motion, defense, or otherwise in such suit, action, or proceeding, any claim
that (i) Borrower is not subject to
the jurisdiction of the courts of the above-referenced state or the United
States District Court for such state, or (ii) such suit, action, or proceeding
is brought in an inconvenient forum, or (iii) the venue of such suit, action,
or proceeding is improper.

9.7          Attorney’s Fees and
Costs.  In any lawsuit or
arbitration arising out of or relating to this Note, the Loan Documents or the
Loan, the prevailing party will be entitled to recover from each other party
such sums as the court or arbitrator adjudges to be reasonable attorneys’ fees
in the action or arbitration, in addition to costs and expenses otherwise
allowed by law.  In all other actions or
proceedings, including any matter arising out of or relating to any Insolvency
Proceeding, Borrower agrees to pay all of Bank’s costs and expenses, including
reasonable attorneys’ fees, incurred in enforcing or protecting Bank’s rights
or interests.  From the time(s) incurred
until paid in full to Bank, all such sums shall bear interest at the Default
Rate.  Whenever
Borrower is obligated to pay or reimburse Bank for any attorneys’ fees, those
fees shall include the allocated costs for services of in-house counsel.

9.8          Holder’s Rights.  Borrower
agrees that the holder of this Note may accept additional or substitute
security for this Note, or release any security or any party liable for this
Note, or extend or renew this Note, all without notice to Borrower and without
affecting the liability of Borrower.

9.9          Interpretation.  As used
in this Note, the terms “Bank,” “holder” and “holder of this Note” are
interchangeable.  As used in this Note,
the word “include(s)” means “include(s), without limitation,” and the word “including”
means “including, but not limited to.”

9.10        Time of the Essence.  Time is
of the essence with regard to all payment obligations under this Note.

9.11        Amendments.  This Note may not be modified or amended
except by a written agreement signed by the parties.

9.12        Counterparts.  This Note may be executed in counterparts,
and all counterparts constitute but one and the same document.

IN
WITNESS WHEREOF, Borrower has duly executed and delivered
this Note to Bank as of the date first above written.

BORROWER:

	
  THE INVENTURE GROUP, INC.,

  	
   

  	
  Address for notices to
  Borrower:

  
	
  a Delaware corporation

  	
   

  	
   

  
	
   

  	
   

  	
  The Inventure Group, Inc.

  
	
   

  	
   

  	
  5050 N. 40TH Street, Suite 300

  
	
  By:

  	
  /s/ Steve Weinberger

  	
   

  	
  Phoenix, AZ 85018

  
	
  Name:

  	
  Steve Weinberger

  	
   

  	
  Attention: Steve Weinberger - SVP, CFO

  
	
  Title:

  	
  CFO

  	
   

  	
   

  
	
   

  	
   

  	
  Tax I.D. #: 86-0786101

  
						

 

 6

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