Document:

<PAGE>   1

                                 EXHIBIT SECTION
                                 EXHIBIT (10.3)

                                                                    EXHIBIT 10.3
                                 UPTON PRINTING

                             COMMERCIAL GROSS LEASE
                       STANDARD FORM OF LEO FELLMAN & CO.

     1. M. Field Gomila Et. Al. (hereinafter referred to, whether one or more,
as "Lessor") hereby leases to Bourque Printing DBA Upton Printing (hereinafter
referred to, whether one or more, as "Lessee"), the following described
property: The two, one-story buildings known as 740 and 746 Carondelet Street
betweeen Girod and Julia Streets, New Orleans, Louisiana 70130.

     2. If the above described property is leased to more than one party, the
obligations of all such parties hereunder, as Lessee, shall be in solido.

     3. This lease is for a term of 36 months commencing on October 1, 2000, and
ending on September 30, 2003.

     4. The monthly rental Under this lease shall be $5580.00 a month for the
     period of October 1, 2000 thru September 30, 2001 and. then adjusted
     annually in accordance with Consumer Price index for October 1, 2000 being
     the base year ($5,580.00) payable in advance. Rent for the first full
     calendar month of the term of this lease, plus the rent for any fractional
     monthpreceding such first calendar month, shall be payable on the signing
     of this Lease by Lessee and rent for subsequent months shall be payable on
     the first day of October, 2000.(and on the first day of each calendar month
     thereafter, except that if this is a renewal lease, rent shall be payable
     on same date of the beginning of this lease on the same day of each month
     thereafter. All payments of rent shall be made to Leo Fellman & Co. at 720
     Carondelet Street. New Orleans. Louisiana 70130. but Lesser may from time
     to time, with the written consent of Leo Fellman & Co. designate other
     persons and pieces for payment of rent by native to lessee. If Lessee fails
     to pay the monthly rent provided above within seven (7) days after it is
     due, Lessee shall pay to Leo Fellman & Co. a late charge equal to 2% of
     such monthly rent, which shall be retained by Leo Fellman & Co. as part of
     its compensation, and shall be considered a form of rent.

     5. Lessee shall promptly pay all charges for gas, electricity, water and
other utilities consumed on or furnished to the leased premises, including those
used for air conditioning and heating purposes, and shall pay for water
sprinkler service charge, if any. It lessee fails to pay any charges
contemplated to this section, lessor may, at its sole option, pay same, which
shall be considered a form of rent.

     6. The leased premises shall be used only for the following purposes:
Printing

     7. The leased premises and all appurtenances contained therein, including,
but not limited to; locks, keys, glass, elevator (if any), plumbing, automatic
sprinkler system (if any), heating equipment and air conditioning equipment (it
any), are accepted by Lessee in their present condition, including any vices or
detects, latent or otherwise, that may now exist or hereafter atlas in the based
premises, except as to such repairs or improvements as this lease requires
Lessor to make. Lessor shall maintain the roof of the leased premises in good
order and repair, but shall not be required to make any other repairs or
replacements whatsoever to the teased premises, except those rendered

                               Exhibit (10.3)-p1
<PAGE>   2

                                 EXHIBIT SECTION
                                 EXHIBIT (10.3)

necessary by fire or other perils which would be covered by fire and extended
coverage insurance. Lessee shall. at Lessee's expense and within a reasonable
period of time, make any and aft repairs and replacements al whatsoever nature
or character that may become necessary to the leased premises during the term of
this lease other than those hereinabove requited to be made by Lessor. At the
termination of flue lease, Lessee shall return the loaned premises to lessor, In
like order and condition as received, broom clean and tree from trash, ordinary
decay, wear and tear excepted, and shall deliver the keys to the leased premises
to Lessor or Leo Fellman & Co.

     8. Lessor shall not be responsible for damage to property or injury to
person or other losses or damages caused by or resulting from leaks in the roof
of the leased premises, unless Lessor fails to take steps toward repairing such
leaks within a reasonable period of time after being notified thereof by Lessee.
Should Lessee fail to so notify Lessor promptly, Lessee shall be responsible for
damages or losses resulting to Lessor or third parties. Nor shall Lessor be
responsible for damage to properly or Injury to person or other tosses or
damages caused by or resulting from vices or defects, latent or otherwise, that
may now exist or hereafter arise in the leased premises, or caused by or
resulting from disrepair damage or conditions necessitating repairs or
replacements required herein to be made by Lessee.

     9. Should Lessor be delayed in delivering possession of the leased premises
to Lessee on the commencement date of this lease, because of any delay of
existing occupants to vacate or because of the construction of improvements or
the making of repairs required by this lease to be made by Lessor not having
been completed or because of any other reason, not due to the design of Lessor,
this lease shah not be affected thereby and Lessee shall not be entitled to any
damages for such delay, except that Lessee shall be allowed a remission of rent
for the period prior to delivery of possession, in which case the termination
date of this lease shall remain unchanged.

    10. If this lease requires Lessor to make improvements or repairs to the
leased premises and Lessor deems it impracticable to do so prior to the
commencement date of this lease, Lessee agrees that Lessor may make such
improvements or repairs after possession is delivered to Lessee, in a manner
such as not to unreasonably interfere with the operation of Lessee's business,
in which case there shall be no reduction or remission of rent.

    11. Lessee shall not make any alterations or additions to the leased
premises without obtaining Lessors prior written consent, but any, and all
alterations. additions or other improvements made by Lessee, regardless of how
attached (except movable trade fixtures), Shall immediately become and remain
the property of Lessor, without compensation therefore Lessee, provided Lessor
shall have the fight to require that Lessee, prior to the termination of this
lease, remove any or all such alteration, additions or improvements and restore
the leased premises to their condition at the time of the commencement of this
lease.

    12. If any swithtracks serve the leased premises , any and all costs for
the care, repair and maintenance thereof and franchise charges therefor shall be
paid by N\A.

    13. Lessee shall comply with all requirements of State, Municipal, Federal
and other public authorities, relating to the leased premises and the use and
occupancy thereof.

    14. Lessee assumes full responsibility for the condition of the leased
premises and agrees to hold Lessor harmless from any and all liability for
injury to persons or damage to property or other losses of damages caused by or
resulting from any accident or other occurrence in, on or about the leased
premises.

    15. Lessee shall provide and maintain. for the mutual benefit of Lessee and

                               Exhibit (10.3)-p 2
<PAGE>   3

                                 EXHIBIT SECTION
                                 EXHIBIT (10.3)

Lessor, liability insurance against claims (1) for bodily injury, or death
resulting therefrom, occurring on the leased premises, In the amount of
$300.000.00 as to any one occurrence, and (2) for property damage in the amount
of $50,000.00 as to any one occurrence on the leased Insurance premises, Leo
Fellman & Co. shall be named as an insured in the policies evidencing such
insurance and a certificate of insurance shall be delivered to Leo Fellman & Co.
promptly upon the execution of this lease. Lessee shall also provide and
maintain plate glass insurance in an amount adequate to cover any and all plate
glass forming a part of the leased premises. All of said insurance shall be
carried with responsible insurance companies authorized to transact business In
the State of Louisiana and parish" shall deliver to Lessor evidence of such
Insurance, upon request. Said insurance shall not be cancelled or materially
altered by Lessee. without thirty (30) day prior written notice to Lessor and
Leo Fellman & Co.

    16. If the rate of fire or other casualty insurance covering the saaaed
premises is increased due to acts of Lessee, Lessee shall pay to Lessor the
increased cost of such insurance. Lessee will not do or cause or suffer to be
done any act or thing whereby the policy or policies of life or other casualty
insurance covering the leased premises shall become void or suspended.. Should
Lessee's occupancy cause Lessor to be unable to obtain fire or other casualty
insurance covering the leased premises, Lessor shaft have the right to terminate
this lease upon giving Lessee not less than ten (10) days prior written notice.
Lessee agrees to notify Lessor at any time the leased premises will become
unoccupied, so that Lessor may obtain necessary vacancy permits from Lessor's
insurers.

    17. Lessee shall have the right to erect and maintain signs advertising
Lessee's business on the interior and exterior of the leased premises, provided
that the exterior signs shall be approved in writing by Lesser as to size,
design and location and shall be erected and maintained in accordance with the
rules and regulations of the properly constituted authorities. Lessee shall
remove all signs placed on the interior and exterior of the leased premises at
the expiration of this lease and shall repair any damage to the leased premises
caused by the erection, maintenance or removal of such signs.

    18. Lessor shall have the right to enter the leased premises at all
reasonable times for the purpose of inspecting the same and for the purpose of
making repairs required to be made by Lessor or which Lessor may desire to make.

    19. Lessor shall have the right to place the usual "For Sale" and -By
Auction signs on the leased premises at any time during the entire term of this
lease and the usual "for Rent` signs on the leased premises during the last six
(6) months of the term of this lease. Lessee agrees to allow persons authorized
by Lessor to inspect the leased premises during the entire term of this lease
with the view of purchasing the same and during the last six (6) months of the
term of this lease with the view of renting the Same, such inspections to be at
reasonable hours. 1f Lessee is absent from the leased premises, Lessor shall be
notified prior thereto where the keys may be obtained so that the leased
premises may be shown to prospective purchasers or tenants in accordancce with
the foregoing. In the event of failure of Lessee to comply with any of the
provisions of this paragraph, Lessor shall have the option either to consider
this lease automatically extended for a period of one year, upon giving notice
to that effect to lessee, or to hold Lessee responsible for any losses suffered
by such failure.

    20. Upon expiration or termination of this lease, Lessee shall surrender
possession of the leased premises immediately to Lessor and if Lessee fails to
do so. Lessee shall be liable for any and all losses or damages suffered by
Lessor, who shall have the right, but shall not required, to claim as such
losses or damages an amount equal to five (5) times the rent per day for each
day during which Lessee fails to so surrender possession of the leased premises.
if Lessor allows

                               Exhibit (10.3)-p 3
<PAGE>   4

                                 EXHIBIT SECTION
                                 EXHIBIT (10.3)

Lessee to remain In the leased premises after expiration or termination of this
lease, doing so shall not be construed as a reconduction of this lease.

    21. Lessee shall not have the right to sublease the leased premises, in
whole or in part, or to assign this lease or grant use of the leased promises to
others, without the prior written consent of Lessor and any such sublease shall
contain all the provisions of this lease to the extent applicable. Any such
subleasing or assignment shall be handled by Leo, Fellman & Co. and Lessee shall
pay to Leo Fellman & Co. for such handling, at Lessee's options, either (a) a
cash commission in the amount of 6% of the gross rents payable during the entire
term of such sublease or the remaining term of such assigned tease on tents up
to $100,000.00 and 4% on rents in excess of $100,000.00. which commission shall
be paid In full upon execution of such sublease or assignment, plus a commission
of like amount on any percentage rents due under such sublease or assigned tease
(such figure of $100,000.00 to apply to the aggregate of all rents), to be paid
when such percentage rents become due, or (b) a commission of 8% of the gross
rents payable during the entire term of such a sublease or the remaining term of
such assigned lease, including any percentage, rents payable thereunder, such
commission to be paid if, as and when such rents are actually collected, in
which case such rents shall be collected by Leo Fellman & Co.

    22. No auction sales, or other sales not in the ordinary course of Lessee's
business, shall be conducted on the leased premises, without the prior written
consent of Lessor.

    23. If the leased premises are destroyed, or damaged to an extent so as to
render them wholly unfit for the purposes for which they are leased, by fire or
other perils which would be covered by fire and extended coverage insurance,
this lease shall automatically terminate, provide such destruction or damage is
not caused by the neglect or design of Lessee. If, however, the leased premises
are damaged by fire or such other perils and can be repaired within one hundred
twenty (120) days after the date of such fire or other casualty caused by such
other perils this lease shall hot terminate and Lessor shall give notice to
Lessee. within thirty (30) days after such fire or such other casualty. that
Lessor will repair such damage, at Lessor's cost, within said one hundred and
twenty (120) day period. in which case Lessee shall be entitled to a reduction
or remission of rent such as shall be just and proportionate, but shall not be
entitled to any other damages; provided that if Lessor falls to complete such
repairs within said one hundred and twenty (120) day period. because of causes
not due to the fault or design of Lessor. this lease shall not terminate and
Lessee shall not be entitled to damages, but shall be entitled only to a further
just and proportionate reduction or remission of rent.

    24. If Lessee shall fail to pay any installment of rent or shall fail to
Comply with any other provision of this lease, within ten (10) days after notice
by Lessor or Leo Fellman & Co, to Lessee, provided that notice need not be given
with regard to nonpayment of rent after such notice has been given twice during
the period of this lease, or should lessee abandon the leased premises or
discontinue the use of the leased premises for the purposes for which rented or
remove any property on which lessor enjoys a Lessor's lien or should Lessee make
an assignment for the benefit of creditors or file a voluntary petition in
bankruptcy or be adjudicated a bankrupt in an involuntary proceeding or apply
for any other relief under the laws of the United States relating to bankruptcy
or State laws relating to insolvency or should a receiver or other custodian be
appointed for any of Lessee's property, then, in any of such events,

                               Exhibit (10.3)-p 4
<PAGE>   5

                                 EXHIBIT SECTION
                                 EXHIBIT (10.3)

Lessor shall have the right at Lessors option. without pulling Lessee In default
and without notice of default, (1) to cancel this lease effective immediately or
effective as of any date Lessor may select or (2) to proceed one or more times
for past due installments of rent only, without prejudicing the right to proceed
later for additional installments or to exercise any other remedy, or (3) to
declare the unpaid rent for the whole unexpired term of this lease immediately
due and eligible and at once demand and receive payment of the same or (4) to
have recourse to any other remedy or mode of redress to which Lessor may be
entitled by taw. In the event Lessor exercises the right to cancel this lease.
then (a) Lessor shall have the right. as soon as said cancellation Is effective,
to re-enter the leased premises and re-let the same for such price and on such
terms as may be immediately available, without notice or court proceedings.
Lessee hereby assenting thereto and expressly waiving any notice to vacate, and
(b) Lessee shall be and remain liable not only for all rent payable to the date
such cancellation becomes effective, but also for all damage or loss suffered by
lessor (or the remaining term of this lease resulting from such cancellation.
Failure of Lesssor to exercise the rights granted herein shall not be construed
as a waver of such rights and no indulgence by Lessor shall be construed as a
waiver of any rights herein granted.

    25. Should an attorney be engaged by Lessor to enforce payment of the rent
due under this lease or to protect any of the interests of Lessor hereunder,
with or without judicial proceedings. Lessee agrees to pay Lessor the reasonable
fee of such ATTORNEY, which fee is hereby FIXED, if the collection of money is
involved, at 25% of the amount of such money, such fee in no event to be less
than $100.00, and Lessee also agrees to pay all court costs and other expenses
incurred by Lessor.

    26. If Lessor sells or otherwise disposes of the leased premises and the
purchaser or transferee expressly covenants and agrees to assume all of the
covenants conditions and stipulations of this lease and to comply with and be
bound thereby. Lessor shall thereupon be released from all liability thereafter
arising under this lease and thereafter all liability hereunder shall rest upon
such purchaser or transferee.

    27. Any notice to be given under this lease by Lessor or Leo Fellman & Co.
to Lessee shall be considered as duly given, whether received or not, it made in
writing, addressed to lessee and mailed by registered or certified mail to
Lessee at the leased premises. Any notice to be given under this lease by Lessee
to Lessor shall be considered as duly given, whether received or not, if made in
wilting, addressed to Lessor and mailed by registered or certified mail to
Lessor at tile place where rent is required to be paid under this lease as above
provided. Either Lessor or Lessee may change the designated place to which
written notice may be sent. by so advising the other, in writing, by registered
or certified mail. at the places designated in this lease or such place as may
have been subsequently designated In accordance with this paragraph.

    28. Lessor agrees to pay to Leo Fellman & Co. for negotiating this lease,
at Lessor's option, either (a) a cash commission of 6% of the gross rents due
under this lease up to $100,000,00 and 4% of such rents in excess of
$100.000.00, such commission to be paid in full upon execution of this lease,
plus a commission of like amount on any percentage rents payable under this
lease (such figure of $100,000 00 to apply to the Aggregate of all rents), to be
paid when such percentage rents become due, or (b) a commission of 8% of the
gross rents due under this lease, including any percentage rents payable
hereunder, such commission to be paid if, as and when rents are actually
collected, in which case such rents shall be collected by Leo Fellman

                               Exhibit (10.3)-p 5
<PAGE>   6

                                 EXHIBIT SECTION
                                 EXHIBIT (10.3)

& Co.: provided that if this lease is cancelled or terminated, by mutual
agreement of Lessor and lessee. without the written consent of Leo Fellman & Co.
and the commission on rents payable during the unexpired term thereof has not
been paid in full, Lessor shall immediately upon such cancellation or
termination. pay to Leo Fellman & Co. a commission of 6% of such rents up to
$100,000 and 4% of such rents in excess of $100,000.00. Lessor, further agrees
to pay Leo Fellman & Co, a commission of like amount and payable in like manner
and under like conditions, on the gross rents, including any percentage rents,
due under any and all renewals or extensions of this lease and any and all new
leases hereafter made with Lessee or any affiliate, nominee or representative of
Lessee. covering the leased premises or any part thereof.

    29, If the property covered by this lease is to be managed by Leo Fellman &
Co, a management agreement on the form of Management Agreement currently in use
by Leo Fellman & Co, shall be executed. If such management agreement is
executed, the provisions of the immediately preceding paragraph hereof shall not
apply.

    30. Lessor agrees that if the property covered by this lease is sold or
transferred during the term hereof or during the term of any renewal or
extension hereof or during the term of any new lease hereafter entered into as
above mentioned, Lessor will either pay any and all unpaid rental commissions to
which Leo Fellman & Co. is entitled as hereinabove provided or will have the
purchaser on transferee assume the payment thereof. If the purchaser or
transferee does not assume payment of all of said unpaid commissions, Lessor (a)
will, upon the sale or transfer of said property, pay to Leo Fellman & Co. a
commission of 6% of the rents payable during the remaining term of this lease or
any renewal or extension thereof or such new lease, as the case may be, up to
rents totaling $100,000.00 and 4% of such rents in excess of $100,000.00 and (b)
will, upon execution of any renewal or extension of this lease subsequent to
said sale or transfer, pay to Leo Fellman & Co. a commission of 4% of the rents
payable under such extension or renewal up to $100,000.00 and 4% of such rents
in excess of $100,000.00 and (c) will. upon execution of any new lease with
Lessee or affiliate. nominee or representative of Lessee, subsequent to said
sale or transfer, covering the leased premises or any part thereof. pay to Leo
Fellman & Co, a commission of 6% of the rents payable under such new lease up to
100,000.00 and 4% of such rents in excess of $100,000.00 provided that as to
(a), (b) and (c). the commission on any percentage rents shall be paid when such
percentage rents become due.

    31. If the property covered by this lease is at any time sold to Lessee or
any sublessee or assignee of this lease, or any affiliate, nominee or
representative of any of them (including a sale pursuant to an option or
agreement contained in this lease), Lessor shall pay to Leo Fellman& Co. a
commission of 6% of the sale prices up to $100,000.00 and 4% of the sale price
in excess of $100,000.00. Leo Fellman & Co. shall receive in full such
commission and there shall be no participation with regard thereto with any
other real estate agent or broker. The provisions or this paragraph shall also
apply to any exchange of properties made with Lessee or any subleases or
assigoec of this lease. or any affiliate nominee or representative of any of
them, involving the property covered by this lease and said commission shall be
based on the then value of said property.

    32. Lessee has deposited with Leo Fellman & Co., as agent of Lessor. the
sum of $ N/A

                               Exhibit (10.3)-p 6
<PAGE>   7

                                 EXHIBIT SECTION
                                 EXHIBIT (10.3)

which is pledged to secure the faithful performance of all obligations of Lessee
under this lease. Said deposit shall be non-interest bearing, Said deposit shall
not be released until this lease has terminated and it has been determined by
Leo Fellman & Co. that Lessee has complied with all of Lessee's obligations
under this lease.

    33. Failure of Lessor to require strict performance by Lessee of any of the
covenants, provisions or conditions of this lease, on one or more occasions,
shall not constitute a waiver by Lessor of the right thereafter to require
strict compliance with said convenants, provisions and conditions.

    34. Leo Fellman & Co, shall not be obligated to record this lease.

    35. This lease shall be deemed to be a contract made under the laws of the
State of Louisiana and shall be construed in accordance with and governed by the
laws of the State of Louisiana and ordinances of the municipality and parish
where the leased premises are situated and the rules and regulations of their
duly constituted authorities.

    36. If there is a conflict between the printed portions and the typewritten
portions of this lease the typewritten or handwritten portion shall prevail.

    37. All of the provisions contained herein shall be binding upon and shall
inure to the benefit of Lessor and Lessee. their heirs executors.
administrators, successors and assigns (as the case may be), and all of the
provisions contained herein granting rights to Leo Fellman & Co. shall inure to
the benefit of any may be enforced by Leo Fellman & Co.. its successors or
assigns.

    38. The whole agreement between the parties hereto is set forth in this
instrument and they shall not be bound by any agreements, conditions,
understandings or representations otherwise than are expressly stipulated and
set forth herein or in any amendments hereto.

     Dated 9-27-00

     Tony D. Adkins

     For value received and to induce the lessor or lessors (hereinafter
referred to as lessor") to enter into the foregoing lease, the undersigned
hereby makes himself or itself a party to said lease and binds himself or itself
in solido with the lessee or lessees under said lease (hereinafter referred to
as "Lessee") for the faithful performance and fulfillment by Lessee of all of
Lessee's agreements and obligations contained in said lease and guarantees to
Lessor and Lessors heirs, executors. administrators, successors and assigns (as
the case may be), the punctual payment of all rents Clue under said lease and
the performance of all other agreements and obligations of Lessee contained in
said lasso, the undersigned consenting to extensions of payment of rent by
Lessor and other indulgences by Lessor to Lessee and amendments and
modifications of said lease entered into between Lessor and Lessee and waiving
any and all requirements of notice of non-payment. demand, non-performance or
dishonor and all other requirements of law.

                               Exhibit (10.3)-p 7
<PAGE>   8
                                 EXHIBIT SECTION
                                 EXHIBIT (10.3)

                                     "RIDER"

To pay punctually all City, State and Federal Taxes, or any other taxes except
income and inheritance taxes, which may be levied or assessed against the
property, and to deliver to Lessor all. Tax receipts for same.To maintain during
the term of this lease, at Lessee's expense, insurance in solvent companies,
doing business in the State of Louisiana, in the joint names of

Lessor and Lessee against:, Fire and extended coverage to the full insurable
replacement value of the building; 0. L. & T. liability in the amount of not
less than $1,000,000.00 Sprinkler insurance in the amount of as required.
Privilege is hereby granted to Lessee to sub-lease the premises in whole or in
part to party or parties subject to the approval of Lessor or Lessor's agent,
which approval shall not be unreasonably withheld.Lessee, at Lessee's own cost
arid expense, is hereby granted the right or privilege to make repairs,
alterations and/or improvements to the herein leased premises necessary for the
proper conduct of Lessee's business; however, no structural, changes are to be
made without the written consent of Lessor. Said repairs, alterations and/ox
improvements are to be done in a thoroughly workmanlike manner and in accordance
with the City Building Code and the rules and regulations of the Louisiana
Rating & Fire Prevention Bureau and other similar bureaus that may be in
existence at the time.

It is understood and agreed that Lessee is to remain responsible for any and all
damages caused to the roofs of the buildings known as Nos. 740 and 746
Carondelet Street occasioned by the installation and maintenance of the air
conditioning water towers.

This is an extension or renewal of a lease, covering a prior period, bearing on
the same premises and it is agreed and understood by the parties hereto that any
default or violation by Lessee in any obligation or condition of the lease,
covering the prior period, shall constitute a default or violation under the
within lease. And, further it is agreed and understood that any default,
violation, condition or, circumstance that would terminate or annul the lease,
covering such prior period, bearing on the same premises would likewise
terminate or annul this lease.

Attached to and forming part of lease made by and between M. Feild Gomila et al,
and E. S. Upton Printing Co.

<TABLE>
<S>                                         <C>
Dated:                                       Bourque Printing DSA Upton Printing
Tony  K. Adkins, Vice-president
M. Feild Gomila, President
Leo Fellman & Co.-Agents for
M. Feild Gomila etal
</TABLE>

                               Exhibit (10.3)-p 8<PAGE>   1
                                 EXHIBIT SECTION
                                 EXHIBIT (10.4)

                                                                    EXHIBIT 10.4

                                 LOAN AGREEMENT

<TABLE>
<S>              <C>          <C>          <C>            <C>       <C>           <C>             <C>         <C>
----------------------------------------------------------------------------------------------------------------------
  PRINCIPAL      LOAN DATE     MATURITY      LOAN NO      CALL      COLLATERAL      ACCOUNT       OFFICER     INITIALS
$2,690,937.87    05-06-1999   05-06-2002   5568697/100                  EQ        5568697/100      55207
----------------------------------------------------------------------------------------------------------------------
References in the shaded area are for Lender's use only and do not limit the applicability of this document to any
particular loan or item.
----------------------------------------------------------------------------------------------------------------------
</TABLE>

BORROWER:                                  LENDER:
          CHAMPION INDUSTRIES, INC.
                (TIN: 55-0717455)
                                           One Valley Bank, National Association
          2450 FIRST AVENUE                Corporate Banking
          HUNTINGTON, WV 25728-2968        One Valley Square,
          P.O. Box 1793                    Charleston, WV  25326

THIS BUSINESS LOAN AGREEMENT between CHAMPION INDUSTRIES, INC. ("Borrower") and
One Valley Bank, National Association ("Lender") is made and executed on the
following terms and conditions. Borrower has received prior commercial loans
from Lender or has applied to Lender for a commercial loan or loans and other
financial accommodations, including those which may be described on any exhibit
or schedule attached to this Agreement. All such loans and financial
accommodations, together with all future loans and financial accommodations from
Lender to Borrower, are referred to in this Agreement individually as the "Loan"
and collectively as the "Loans." Borrower understands and agrees that: (a) In
granting, renewing, or extending any Loan, Lender is relying upon Borrower's
representations, warranties, and agreements, as set forth in this Agreement; (b)
the granting, renewing, or extending of any Loan by Lender at all times shall be
subject to Lender's sole judgment and discretion; and (c) all such Loans shall
be and shall remain subject to the following terms and conditions of this
Agreement.

TERM. This Agreement shall be effective as of May 6, 1999, and shall continue
thereafter until all Indebtedness of Borrower to Lender has been performed in
full and the parties terminate this Agreement in writing.

CONDITIONS PRECEDENT TO EACH ADVANCE. Lender's obligation to make the initial
Loan Advance and each subsequent Loan Advance under this Agreement shall be
subject to the fulfillment to Lender's satisfaction of all of the conditions set
forth in this Agreement and in the Related Documents.

        Loan Documents. Borrower shall provide to Lender in form satisfactory to
        Lender the following documents for the Loan: (a) the Note, (b) Security
        Agreements granting to Lender security interests in the Collateral, (c)
        Financing Statements perfecting Lender's Security Interests; (d)
        evidence of insurance as required below; and (e) any other documents
        required under this Agreement or by Lender or its counsel.

        Borrower's Authorization. Borrower shall have provided in form and
        substance satisfactory to Lender properly certified resolutions, duly
        authorizing the execution and delivery of this Agreement, the Note and
        the Related Documents, and such other authorizations and other documents
        and instruments as Lender or its counsel, in their sole discretion, may
        require. Payment of Fees and Expenses. Borrower shall have paid to
        Lender all fees, charges, and other expenses which are then due and
        payable as specified in this Agreement or any Related Document.

        Representations and Warranties. The representations and warranties set
        forth in this Agreement, in the Related Documents, and in any document
        or certificate delivered to Lender under this Agreement are true and
        correct.

                               Exhibit (10.4)-p1
<PAGE>   2

                                 EXHIBIT SECTION
                                 EXHIBIT (10.4)

        No Event of Default. There shall not exist at the time of any advance a
        condition which would constitute an Event of Default under this
        Agreement.

REPRESENTATIONS AND WARRANTIES. Borrower represents and warrants to Lender, as
of the date of this Agreement, as of the date of each disbursement of Loan
proceeds, as of the date of any renewal, extension or modification of any Loan,
and at all times any Indebtedness exists:

        Organization. Borrower is a corporation which is duly organized, validly
        existing, and in good standing under the laws of the State of West
        Virginia and is validly existing and in good standing in all states in
        which Borrower is doing business. Borrower has the full power and
        authority to own its properties and to transact the businesses in which
        it is presently engaged or presently proposes to engage. Borrower also
        is duly qualified as a foreign corporation and is in good standing in
        all states in which the failure to so qualify would have a material
        adverse effect on its businesses or financial condition.

        Authorization. The execution, delivery, and performance of this
        Agreement by Borrower, to the extent to be executed, delivered or
        performed by Borrower, have been duly authorized by all necessary action
        by Borrower; do not require the consent or approval of any other person,
        regulatory authority or governmental body; and do not conflict with,
        result in a violation of, or constitute a default under (a) any
        provision of its articles of incorporation or organization, or bylaws,
        or any agreement or other instrument binding upon Borrower or (b) any
        law, governmental regulation, court decree, or order applicable to
        Borrower.

        Financial Information. Each financial statement of Borrower supplied to
        Lender truly and completely disclosed Borrower's financial condition as
        of the date of the statement, and there has been no material adverse
        change in Borrower's financial condition subsequent to the date of the
        most recent financial statement supplied to Lender. Borrower has no
        material contingent obligations except as disclosed in such financial
        statements.

        Legal Effect. This Agreement constitutes, and any instrument or
        agreement required hereunder to be given by Borrower when delivered will
        constitute, legal, valid and binding obligations of Borrower enforceable
        against Borrower in accordance with their respective terms.

        Properties. Except as contemplated by this Agreement or as previously
        disclosed in Borrower's financial statements or in writing to Lender and
        as accepted by Lender, and except for property tax liens for taxes not
        presently due and payable, Borrower owns and has good title to all of
        Borrower's properties free and clear of all liens and security
        interests, and has not executed any security documents or financing
        statements relating to such properties. All of Borrower's properties are
        titled in Borrower's legal name, and Borrower has not used, or filed a
        financing statement under, any other name for at least the last five (5)
        years.

        Hazardous Substances. Except as disclosed to Lender in writing, no
        property of Borrower ever has been, or ever will be so long as this
        Agreement remains in effect, used for the generation, manufacture,
        storage, treatment, disposal, release or threatened release of any
        hazardous waste or substance, as those terms are defined in the
        "CERCLA," "SARA," applicable state or Federal laws, or regulations
        adopted pursuant to any of the foregoing. The representations and
        warranties contained herein are based on Borrower's due diligence in
        investigating the properties for hazardous waste and hazardous
        substances. Borrower hereby (a) releases and waives any future claims
        against Lender for indemnity or contribution in the event Borrower
        becomes liable for cleanup or other costs under any such laws, and (b)
        agrees to indemnify and hold harmless Lender against any and all claims
        and losses resulting from a breach of this provision of this Agreement.
        This obligation to indemnify shall survive the payment of the
        Indebtedness and the satisfaction of this Agreement.

                               Exhibit (10.4)-p2
<PAGE>   3

                                 EXHIBIT SECTION
                                 EXHIBIT (10.4)

        Commercial Purposes. Borrower intends to use the Loan proceeds solely
        for business or commercial related purposes.

AFFIRMATIVE COVENANTS. Borrower covenants and agrees with Lender that, while
this Agreement is in effect, Borrower will:

        Litigation. Promptly inform Lender in writing of (a) all material
        adverse changes in Borrower's financial condition, and (b) all existing
        and all threatened litigation, claims, investigations, administrative
        proceedings or similar actions affecting Borrower or any guarantor of
        the Loan which could materially affect the financial condition of
        Borrower or the financial condition of any guarantor of the Loan.

        Financial Records. Maintain its books and records in accordance with
        accounting principles acceptable to Lender, applied on a consistent
        basis, and permit Lender to examine and audit Borrower's books and
        records at all reasonable times.

        Financial Statements. Furnish Lender with, as soon as available, but in
        no event later than ninety (90) days after the end of each fiscal year,
        Borrower's balance sheet and income statement for the year ended,
        compiled by a certified public accountant satisfactory to Lender. All
        financial reports required to be provided under this Agreement shall be
        prepared in accordance with accounting principles acceptable to Lender,
        applied on a consistent basis, and certified by Borrower as being true
        and correct. .

        Additional Information. Furnish such additional information and
        statements, lists of assets and liabilities, aging of receivables and
        payables, inventory schedules, budgets, forecasts, tax returns, and
        other reports with respect to Borrower's financial condition and
        business operations as Lender may request from time to time.

        Loan Proceeds. Use all Loan proceeds solely for Borrower's business
        operations, unless specifically consented to the contrary by Lender in
        writing.

        Performance. Perform and comply with all terms, conditions, and
        provisions set forth in this Agreement and in the Related Documents in a
        timely manner, and promptly notify Lender if Borrower learns of the
        occurrence of any event which constitutes an Event of Default under this
        Agreement or under any of the Related Documents.

        Operations. Maintain executive and management personnel with
        substantially the same qualifications and experience as the present
        executive and management personnel; provide written notice to Lender of
        any change in executive and management personnel; conduct its business
        affairs in a reasonable and prudent manner and in compliance with all
        applicable federal, state and municipal laws, ordinances, rules and
        regulations respecting its properties, charters, businesses and
        operations, including without limitation, compliance with the Americans
        With Disabilities Act and with all minimum funding standards and other
        requirements of ERISA and other laws applicable to Borrower's employee
        benefit plans. Inspection. Permit employees or agents of Lender at any
        reasonable time to inspect any and all Collateral for the Loan or Loans
        and Borrower's other properties and to examine or audit Borrower's
        books, accounts, and records and to make copies and memoranda of
        Borrower's books, accounts, and records. If Borrower now or at any time
        hereafter maintains any records (including without limitation computer
        generated records and computer software programs for the generation of
        such records) in the possession of a third party, Borrower, upon request
        of Lender, shall notify such party to permit Lender free access to such
        records at all reasonable times and to provide Lender with copies of any
        records it may request, all at Borrower's expense.

                               Exhibit (10.4)-p3
<PAGE>   4

                                 EXHIBIT SECTION
                                 EXHIBIT (10.4)

NEGATIVE COVENANTS. Borrower covenants and agrees with Lender that while this
Agreement is in effect, Borrower shall not, without the prior written consent of
Lender:

        INDEBTEDNESS AND LIENS. (a) Except for trade debt incurred in the normal
        course of business and indebtedness to Lender contemplated by this
        Agreement, create, incur or assume indebtedness for borrowed money,
        including capital leases, (b) except as allowed as a Permitted Lien,
        sell, transfer, mortgage, assign, pledge, lease, grant a security
        interest in, or encumber any of Borrower's assets, or (c) sell with
        recourse any of Borrower's accounts, except to Lender.

        CONTINUITY OF OPERATIONS. (a) Engage in any business activities
        substantially different than those in which Borrower is presently
        engaged, (b) cease operations, liquidate, merge, transfer, acquire or
        consolidate with any other entity, change ownership, change its name,
        dissolve or transfer or sell Collateral out of the ordinary course of
        business, (c) pay any dividends on Borrower's stock (other than
        dividends payable in its stock), provided, however that notwithstanding
        the foregoing, but only so long as no Event of Default has occurred and
        is continuing or would result from the payment of dividends, if Borrower
        is a "Subchapter S Corporation" (as defined in the Internal Revenue Code
        of 1986, as amended), Borrower may pay cash dividends on its stock to
        its shareholders from time to time in amounts necessary to enable the
        shareholders to pay income taxes and make estimated income tax payments
        to satisfy their liabilities under federal and state law which arise
        solely from their status as Shareholders of a Subchapter S Corporation
        because of their ownership of shares of stock of Borrower, or (d)
        purchase or retire any of Borrower's outstanding shares or alter or
        amend Borrower's capital structure.

        LOANS, ACQUISITIONS AND GUARANTIES. (a) Loan, invest in or advance money
        or assets, (b) purchase, create or acquire any interest in any other
        enterprise or entity, or (c) incur any obligation as surety or guarantor
        other than in the ordinary course of business.

CESSATION OF ADVANCES. If Lender has made any commitment to make any Loan to
Borrower, whether under this Agreement or under any other agreement, Lender
shall have no obligation to make Loan advances or to disburse Loan proceeds if:
(a) Borrower or any guarantor is in default under the terms of this Agreement or
any other agreement that Borrower or any guarantor has with Lender; (b) Borrower
or any Guarantor becomes insolvent, files a petition in bankruptcy or similar
proceedings, or is adjudged a bankrupt; (c) there occurs a material adverse
change in Borrower's financial condition, in the financial condition of any
guarantor, or in the value of any collateral securing any Loan; (d) any
guarantor seeks, claims or otherwise attempts to limit, modify or revoke such
guarantor's. guaranty of the Loan or any other loan with Lender; or (e) Lender
in good faith deems itself insecure, even though no Event of Default shall have
occurred.

YEAR 2000. Borrower warrants and represents that all software utilized in the
conduct of Borrower's, business will have appropriate capabilities and
compatibility for operation to handle calendar dates falling on or after January
1, 2000, and all information pertaining to such calendar dates, in the same
manner and with the same functionality as the software does respecting calendar
dates falling on or before December 31, 1999. Further, Borrower warrants and
represents that the data-related user interface functions, data-fields, and
date-related program instructions and functions of the software include the
indication of the century.

MINIMUM FIXED CHARGE COVERAGE RATIO. The Borrower shall not permit the ratio of
Consolidated Cash Flow from Operations divided by Fixed Charges,

                               Exhibit (10.4)-p4
<PAGE>   5

                                 EXHIBIT SECTION
                                 EXHIBIT (10.4)

calculated as of the end of each fiscal quarter for the previous four fiscal
quarters then ended, to be less than 1.05 to 1.00 through October 31, 1999, and
to be less than 1.10 to 1.0 thereafter.

LEVERAGE RATIO. The Borrower shall not at any time permit the ratio of Total
Senior Indebtedness divided to EBITDA to be greater than:

2.50 to 1.0 as of October 31, 1998
2.50 to 1.0 as of October 31, 1999
2.25 to 1.0 as of October 31, 2000 and
2.0 to 1.0 as of October 31 of each year thereafter

MINIMUM TANGIBLE NET WORTH. The Borrower shall not at any time permit
Consolidated Tangible Net Worth to be less than the sum of (i) 90% of Tangible
Net Worth on the Closing Date, (ii) an amount equal to 50% of the consolidated
Net Income and (iii) 100% of the proceeds of all stock issued by the Borrower or
any of its Subsidiaries.

RIGHT OF SETOFF. Borrower grants to Lender a contractual security interest in,
and hereby assigns, conveys, delivers, pledges, and transfers to Lender all
Borrower's right, title and interest in and to, Borrower's accounts with Lender
(whether checking, savings, or some other account), including without limitation
ail accounts held jointly with someone else and all accounts Borrower may open
in the future, excluding however all IRA and Keogh accounts, and all trust
accounts for which the grant of a security interest would be prohibited by law.
Borrower authorizes Lender, to the extent permitted by applicable law, to charge
or setoff all sums owing on the Indebtedness against any and all such accounts.

EVENTS OF DEFAULT. Each of the following shall constitute an event of default
("Event of Default") under this Agreement:

        DEFAULT ON INDEBTEDNESS. Failure of Borrower to make any payment when
        due on the Loans.

        Other Defaults. Failure of Borrower to comply with or to perform when
        due any other term, obligation, covenant or condition contained in this
        Agreement

        DEFAULT IN FAVOR OF THIRD PARTIES. Should Borrower default under any
        loan, extension of credit, security agreement, purchase or sales
        agreement, or any other agreement, in favor of any other creditor or
        person that may materially affect any of Borrower's property or
        Borrower's ability to repay the Loans or perform Borrower's obligations
        under this Agreement or any related document.

        FALSE STATEMENTS. Any warranty, representation or statement made or
        furnished to Lender by or on behalf of Borrower is false or misleading
        in any material respect at the time made or furnished, or becomes false
        or misleading at any time thereafter. Insolvency. The dissolution or
        termination of Borrower's existence as a going business, the insolvency
        of Borrower, the appointment of a receiver for any part of Borrower's
        property, any assignment for the benefit of creditors, any type of
        creditor workout, or the commencement of any proceeding under any
        bankruptcy or insolvency laws by or against Borrower.

        CREDITOR OR FORFEITURE PROCEEDINGS. Commencement of foreclosure or
        forfeiture proceedings, whether by judicial proceeding, self-help,
        repossession or any other method, by any creditor of Borrower, any
        creditor of any grantor of collateral for the Loan This includes a
        garnishment, attachment, or levy on or of any of Borrower's deposit
        accounts with Lender.

                               Exhibit (10.4)-p5
<PAGE>   6

                                 EXHIBIT SECTION
                                 EXHIBIT (10.4)

        EVENTS AFFECTING GUARANTOR. Any of the preceding events occurs with
        respect to any Guarantor of any of the Indebtedness or any Guarantor
        dies or becomes incompetent, or revokes or disputes the validity of, or
        liability under, any Guaranty of the Indebtedness. Lender, at its
        option, may, but shall not be required to, permit the Guarantor's estate
        to assume unconditionally the obligations arising under the guaranty in
        a manner satisfactory to Lender, and, in doing so, cure the Event of
        Default.

        Change In Ownership. Any change in ownership of twenty-five percent
        (25%) or more of the common stock of Borrower.

        ADVERSE CHANGE. A material adverse change occurs in Borrower's financial
        condition, or Lender believes the prospect of payment or performance of
        the Indebtedness is impaired.

        Insecurity. Lender, in good faith, deems itself insecure.

EFFECT OF AN EVENT OF DEFAULT. If any Event of Default shall occur, except where
otherwise provided in this Agreement or the Related Documents, all commitments
and obligations of Lender under this Agreement immediately will terminate and,
at Lender's option, ail Indebtedness immediately will become due and payable,
all without notice of any kind to Borrower, except that in the case of an Event
of Default of the type described in the "Insolvency" subsection above, such
acceleration shall be automatic and not optional. In addition, Lender shall have
all the rights and remedies provided in the Related Documents or available at
law, in equity, or otherwise. Except as may be prohibited by applicable law, all
of Lender's rights and remedies shall be cumulative and may be exercised
singularly or concurrently. Election by Lender to pursue any remedy shall not
exclude pursuit of any other remedy, and an election to make expenditures or to
take action to perform an obligation of Borrower or of any Grantor shall not
affect Lender's right to declare a default and to exercise its rights and
remedies.

Borrower acknowledges having read all the provisions of this business loan
agreement, and Borrower agrees to its terms. This agreement is dated as of May
6, 1999.

Borrower:

Champion Industries, Inc.

                               Exhibit (10.4)-p6
<PAGE>   7

                                 EXHIBIT SECTION
                                 EXHIBIT (10.4)

                                 PROMISSORY NOTE

<TABLE>
<S>                                  <C>                        <C>
PRINCIPAL AMOUNT: $2,690,937.87      INTEREST RATE: 6.750%      DATE OF NOTE: MAY 6, 1999
</TABLE>

PROMISE TO PAY. CHAMPION INDUSTRIES, INC. ("Borrower") promises to pay to One
Valley Bank, National Association ("Lender"), or order, in lawful money of the
United States of America, the principal amount of Two Million Six Hundred Ninety
Thousand Nine Hundred Thirty Seven & 87/100 Dollars ($2,690,937.87), together
with interest at the rate of 6.750% per annum on the unpaid principal balance
from May 6, 1999, until paid in full.

PAYMENT. Borrower will pay this loan in 35 payments of $82,921.07 each payment
and an irregular last payment estimated at $82,920.71. Borrower's first payment
is due June 6, 1999, and all subsequent payments are due on the same day of each
month after that. Borrower's final payment will be due on May 6, 2002, and will
be for all principal and all accrued interest not yet paid. Payments include
principal and interest. The annual interest rate for this Note is computed on a
365/360 basis; that is, by applying the ratio of the annual interest rate over a
year of 360 days, multiplied by the outstanding principal balance, multiplied by
the actual number of days the principal balance is outstanding. Borrower will
pay Lender at Lender's address shown above or at such other place as Lender may
designate in writing. Unless otherwise agreed or required by applicable law,
payments will be applied first to accrued unpaid interest, then to principal,
and any remaining amount to any unpaid collection costs and late charges.

PREPAYMENT; MINIMUM INTEREST CHARGE. In any event, even upon full prepayment of
this Note, Borrower understands that Lender is entitled to a minimum interest
charge of $25.00. Other than Borrower's obligation to pay any minimum interest
charge, Borrower may pay without penalty all or a portion of the amount owed
earlier than it is due. Early payments will not, unless agreed to by Lender in
writing, relieve Borrower of Borrower's obligation to continue to make payments
under the payment schedule. Rather, they will reduce the principal balance due
and may result in Borrower making fewer payments.

LATE CHARGE. If a payment is 10 days or more late, Borrower will be charged
5.000% of the regularly scheduled payment or $25.00, whichever is greater.

DEFAULT. Borrower will be in default if any of the following happens: (a)
Borrower fails to make any payment when due. (b) Borrower breaks any promise
Borrower has made to Lender, or Borrower fails to comply with or to perform when
due any other term, obligation, covenant, or condition contained in this Note or
any agreement related to this Note, or in any other agreement or loan Borrower
has with Lender. (c) Borrower defaults under any loan, extension of credit,
security agreement, purchase or sales agreement, or any other agreement, in
favor of any other creditor or person that may materially affect any of
Borrower's property or Borrower's ability to repay this Note or perform
Borrower's obligations under this Note or any of the Related Documents. (d) Any
representation or statement made or furnished to Lender by Borrower or on
Borrower's behalf is false or misleading in any material respect either now or
at the time made or furnished. (e) Borrower becomes insolvent, a receiver is
appointed for any part of Borrower's property, Borrower makes an assignment for
the benefit of creditors, or any proceeding is commenced either by Borrower or
against Borrower under any bankruptcy or insolvency laws. (f) Any creditor tries
to take any of Borrower's property on or in which Lender has a lien or security
interest. This includes a garnishment of any of Borrower's accounts with Lender.
(g) Any guarantor dies or any of the other events described in this default
section occurs with respect to any guarantor of this Note. (h) A material
adverse change occurs in Borrower's financial condition, or Lender believes the
prospect of payment or performance of the Indebtedness is impaired. (i) Lender
in good faith deems itself insecure.

                               Exhibit (10.4)-p7
<PAGE>   8

                                 EXHIBIT SECTION
                                 EXHIBIT (10.4)

If any default, other than a default in payment, is curable and if Borrower has
not been given a notice of a breach of the same provision of this Note within
the preceding twelve (12) months, it may be cured (and no event of default will
have occurred) if Borrower, after receiving written notice from Lender demanding
cure of such default: (a) cures the default within ten (10) days; or (b) if the
cure requires more than ten (10) days, immediately initiates steps which Lender
deems in Lender's sole discretion to be sufficient to cure the default and
thereafter continues and completes all reasonable and necessary steps sufficient
to produce compliance as soon as reasonably practical.

LENDER'S RIGHTS. Upon default, Lender may declare the entire unpaid principal
balance on this Note and all accrued unpaid interest immediately due, without
notice, and then Borrower will pay that amount. Lender may hire or pay someone
else to help collect this Note if Borrower does not pay. Borrower also will pay
Lender that amount. This includes, subject to any limits under applicable law,
Lender's attorneys' fees and Lender's legal expenses whether or not there is a
lawsuit, including attorneys' fees and legal expenses for bankruptcy proceedings
(including efforts to modify or vacate any automatic stay or injunction),
appeals, and any anticipated post-judgment collection services. If not
prohibited by applicable law, Borrower also will pay any court costs, in
addition to all other sums provided by law. This Note has been delivered to
Lender and accepted by Lender in the State of West Virginia. If there is a
lawsuit, Borrower agrees upon Lender's request to submit to the jurisdiction of
the courts of Kanawha County, the State of West Virginia. Lender and Borrower
hereby waive the right to any jury trial In any action, proceeding, or
counterclaim brought by either Lender or Borrower against the other. This Note
shall be governed by and construed in accordance with the laws of the State of
West Virginia.

RIGHT OF SETOFF. Borrower grants to Lender a contractual security interest in,
and hereby assigns, conveys, delivers, pledges, and transfers to Lender all
Borrower's right, title and interest in and to, Borrower's accounts with Lender
(whether checking, savings, or some other account), including without limitation
all accounts held jointly with someone else and all accounts Borrower may open
in the future, excluding however all IRA and Keogh accounts, and all trust
accounts for which the grant of a security interest would be prohibited by law.
Borrower authorizes Lender, to the extent permitted by applicable law, to charge
or setoff all sums owing on this Note against any and all such accounts.

COLLATERAL. This Note is secured by a Security Agreement dated May 6, 1999
securing 1st lien on specific equipment as listed on Attachment A.

REPRICING. The interest rate shall remain fixed for six months from the date of
the Note at which time Lender reserves the right to reprice the Loan in six
month intervals based on the six month Libor Rate plus 1.75%.

GENERAL PROVISIONS. Lender may delay or forgo enforcing any of its rights or
remedies under this Note without losing them. Borrower and any other person who
signs, guarantees or endorses this Note, to the extent allowed by law, waive
presentment, demand for payment, protest and notice of dishonor. Upon any change
in the terms of this Note, and unless otherwise expressly stated in writing, no
party who signs this Note, whether as maker, guarantor, accommodation maker or
endorser, shall be released from liability. All such parties agree that Lender
may renew or extend (repeatedly and for any length of time) this loan, or
release any party or guarantor or collateral; or impair, fail to realize upon or
perfect Lender's security interest in the collateral; and take any other action
deemed necessary by Lender without the consent of or notice to anyone. All such
parties also agree that Lender may modify this loan without the consent of or
notice to anyone other than the party with whom the modification is made.

PRIOR TO SIGNING THIS NOTE, BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS OF
THIS NOTE. BORROWER AGREES TO THE TERMS OF THE NOTE AND ACKNOWLEDGES RECEIPT OF
A COMPLETED COPY OF THE NOTE.

                               Exhibit (10.4)-p8
<PAGE>   9

                                 EXHIBIT SECTION
                                 EXHIBIT (10.4)

                          COMMERCIAL SECURITY AGREEMENT

<TABLE>
<S>        <C>                                 <C>      <C>
BORROWER:  CHAMPION INDUSTRIES, INC.
           (TIN: 55-0717455)                   LENDER:  One Valley Bank, National Association
                                                        Corporate Banking
           2450 FIRST AVENUE                            One Valley
           HUNTINGTON, WV 25728-2968                    Charleston, WV 25326
           Square, P.O. Box 1793
</TABLE>

THIS COMMERCIAL SECURITY AGREEMENT is entered Into between CHAMPION INDUSTRIES,
INC. (referred to below as "Grantor"); and One Valley Bank, National Association
(referred to below as "Lender"). For valuable consideration, Grantor grants to
Lender a security interest in the Collateral to secure the Indebtedness and
agrees that Lender shall have the rights stated in this Agreement with respect
to the Collateral, in addition to all other rights which Lender may have by law.

DEFINITIONS. The following words shall have the following meanings when used in
this Agreement. Terms not otherwise defined in this Agreement shall have the
meanings attributed to such terms in the Uniform Commercial Code. All references
to dollar amounts shall mean amounts in lawful money of the United States of
America.

        Agreement. The word "Agreement" means this Commercial Security
Agreement, as this Commercial Security Agreement may be amended or modified from
time to time, together with all exhibits and schedules attached to this
Commercial Security Agreement from time to time.

        Collateral. The word "Collateral" means the following described property
of Grantor, whether now owned or hereafter acquired, whether now existing or
hereafter arising, and wherever located:

        1st lien on specific Equipment as listed on attachment A

        In addition, the word "Collateral" includes all the following, whether
now owned or hereafter acquired, whether now existing or hereafter arising, and
wherever located:

        (a) All attachments, accessions, accessories, tools, parts, supplies,
increases, and additions to and all replacements of and substitutions for any
property described above.

        (b) All products and produce of any of the property described in this
Collateral section.

        (c) All accounts, general intangibles, instruments, rents, monies,
payments, and all other rights, arising out of a sale, lease, or other
disposition of any of the property described in this Collateral section.

        (d) All proceeds (including insurance proceeds) from the sale,
destruction, loss, or other disposition of any of the property described in this
Collateral section.

        (e) All records and data relating to any of the property described in
this Collateral section, whether in the form of a writing, photograph,
microfilm, microfiche, or electronic media, together with all of Grantor's
right, title, and interest in and to all computer software required to utilize,
create, maintain, and process any such records or data on electronic media.

        Event of Default. The words "Event of Default" mean and include without
limitation any of the Events of Default set forth below in the section titled
"Events of Default."

        Guarantor. The word "Guarantor" means and includes without limitation
each and all of the guarantors, sureties, and accommodation parties in
connection with the Indebtedness.

        Indebtedness. The word "Indebtedness" means the indebtedness evidenced
by the Note, including all principal and interest, together with all other
indebtedness and costs and expenses for which Grantor is responsible under this
Agreement or under any of the Related Documents. In addition, the word
"Indebtedness" includes all other obligations, debts and liabilities, plus
interest

                               Exhibit (10.4)-p9
<PAGE>   10

                                 EXHIBIT SECTION
                                 EXHIBIT (10.4)

thereon, of Grantor, or any one or more of them, to Lender, as well as all
claims by Lender against Grantor, or any one or more of them, whether existing
now or later; whether they are voluntary or involuntary, due or not due, direct
or indirect, absolute or contingent, liquidated or unliquidated; whether Grantor
may be liable individually or jointly with others; whether Grantor may be
obligated as guarantor, surety, accommodation party or otherwise; whether
recovery upon such indebtedness may be or hereafter may become barred by any
statute of limitations; and whether such indebtedness may be or hereafter may
become otherwise unenforceable.

        Note. The word "Note" means the note or credit agreement dated May 6,
1999, in the principal amount of $2,690,937.87 from CHAMPION INDUSTRIES, INC. to
Lender, together with all renewals of, extensions of, modifications of,
refinancing of, consolidations of and substitutions for the note or credit
agreement.

        RELATED DOCUMENTS. The words "Related Documents" mean and include
without limitation all promissory notes, credit agreements, loan agreements,
environmental agreements, guaranties, security agreements, mortgages, deeds of
trust, and all other instruments, agreements and documents, whether now or
hereafter existing, executed in connection with the Indebtedness.

        RIGHT OF SETOFF. Grantor hereby grants Lender a contractual security
interest in and hereby assigns, conveys, delivers, pledges, and transfers all of
Grantor's right, title and interest in and to Grantor's accounts with Lender
(whether checking, savings, or some other account), including all accounts held
jointly with someone else and all accounts Grantor may open in the future,
excluding, however, all IRA and Keogh accounts, and all trust accounts for which
the grant of a security interest would be prohibited by law. Grantor authorizes
Lender, to the extent permitted by applicable law, to charge or setoff all
Indebtedness against any and all such accounts.

        OBLIGATIONS OF GRANTOR. Grantor warrants and covenants to Lender as
follows:

        PERFECTION OF SECURITY INTEREST. Grantor agrees to execute such
financing statements and to take whatever other actions are requested by Lender
to perfect and continue Lender's security interest in the Collateral. Upon
request of Lender, Grantor will deliver to Lender any and all of the documents
evidencing or constituting the Collateral, and Grantor will note Lender's
interest upon any and all chattel paper if not delivered to Lender for
possession by Lender. Except in the ordinary course of its business, Grantor
shall not remove the Collateral from its existing locations without the prior
written consent of Lender.

        REMOVAL OF COLLATERAL. Grantor shall keep the Collateral (or to the
extent the Collateral consists of intangible property such as accounts, the
records concerning the Collateral) at Grantor's address shown above, or at such
other locations as are acceptable to Lender. Except in the ordinary course of
its business, including the sales of inventory, Grantor shall not remove the
Collateral from its existing locations without the prior written consent of
Lender. To the extent that the Collateral consists of vehicles, or other titled
property, Grantor shall not take or permit any action which would require
application for certificates of title for the vehicles outside the State of West
Virginia, without the prior written consent of Lender.

        TRANSACTIONS INVOLVING COLLATERAL. Except for inventory sold or accounts
collected in the ordinary course of Grantor's business, Grantor shall not sell,
offer to sell, or otherwise transfer or dispose of the Collateral. Grantor shall
not pledge, mortgage, encumber or otherwise permit the Collateral to be subject
to any lien., security interest, encumbrance, or charge, other than the security
interest provided for in this Agreement, without the prior written consent of
Lender.

Title. Grantor represents and warrants to Lender that it holds good and
marketable title to the Collateral, free and clear of all liens and encumbrances
except far the -fier: of this Agreement. No financing statement covering any of
the Collateral is on file in any public office otherthan those which reflect the
security interest created by this Agreement or to which Lender has specifically

                               Exhibit (10.4)-p10
<PAGE>   11

                                 EXHIBIT SECTION
                                 EXHIBIT (10.4)

consented. Grantor shall defend Lender's rights in the Collateral against the
claims and demands of all other persons.

MAINTENANCE AND INSPECTION OF COLLATERAL. Grantor shall maintain all tangible
Collateral in good condition and repair. Grantor will not commit or permit
damage to or destruction of the Collateral or any part of the Collateral. Lender
and its designated representatives and agents shall have the right at all
reasonable times to examine, inspect, and audit the Collateral wherever located.
Grantor shall immediately notify Lender of all cases involving the return,
rejection, repossession, loss or damage of or to any Collateral; of any request
for credit or adjustment or of any other dispute arising with respect to the
Collateral; and generally of all happenings and events affecting the Collateral
or the value or the amount of the Collateral.Compliance With Governmental
Requirements. Grantor shall comply promptly with all laws, ordinances, rules and
regulations of all governmental authorities, now or hereafter in effect,
applicable to the ownership, production, disposition, or use of the Collateral,
including without limitation payment when due of all taxes, assessments and
liens upon the Collateral. Maintenance of Casualty Insurance. Grantor shall
procure and maintain all risks insurance, including without limitation fire,
theft and liability coverage together with such other insurance as Lender may
require with respect to the Collateral, in form, amounts, coverages and basis
reasonably acceptable to Lender and issued by a company or companies reasonably
acceptable to Lender. Grantor, upon request of Lender, will deliver to Lender
from time to time the policies or certificates of insurance in form satisfactory
to Lender, including stipulations that coverages will not be cancelled or
diminished without at least twenty (20) days' prior written notice to Lender and
not including any disclaimer of the insurer's liability for failure to give such
a notice. Each insurance policy also shall include an endorsement providing that
coverage in favor of Lender will not be impaired in any way by any act, omission
or default of Grantor or any other person. In connection with all policies
covering assets in which Lender holds or is offered a security interest, Grantor
will provide Lender with such loss payable or other endorsements as Lender may
require.

EXPENDITURES BY LENDER. If not discharged or paid when due, Lender may (but
shall not be obligated to) discharge or pay any amounts required to be
discharged or paid by Grantor under this Agreement, including without limitation
all taxes, liens, security interests, encumbrances, and other claims, at any
time levied or placed on the Collateral. Lender also may (but shall not be
obligated to) pay all costs for insuring, maintaining and preserving the
Collateral. All such expenditures incurred or paid by Lender for such purposes
will then bear interest at the rate charged under the Note from the date
incurred or paid by Lender to the date of repayment by Grantor. All such
expenses shall become a part of the Indebtedness and, at Lender's option, will
(a) be payable on demand, (b) be added to the balance of the Note and be
apportioned among and be payable with any installment payments to become due
during either (i) the term of any applicable insurance policy or (ii) the
remaining term of the Note, or (c) be treated as a balloon payment which will be
due and payable at the Note's maturity. This Agreement also will secure payment
of these amounts. Such right shall be in addition to all other rights and
remedies to which Lender may be entitled upon the occurrence of an Event of
Default.

EVENTS OF DEFAULT. Each of the following shall constitute an Event of Default
under this Agreement:

DEFAULT ON INDEBTEDNESS. Failure of Grantor to make any payment when due on the
Indebtedness.

Other Defaults. Failure of Grantor to comply with or to perform any other term,
obligation, covenant or condition contained in this Agreement or in any of the
Related Documents or in any other agreement between Lender and Grantor.

                               Exhibit (10.4)-p11
<PAGE>   12

                                 EXHIBIT SECTION
                                 EXHIBIT (10.4)

DEFAULT IN FAVOR OF THIRD PARTIES. Should Borrower default under any loan,
extension of credit, security agreement, purchase or sales agreement, or any
other agreement, in favor of any other creditor or person that may materially
affect any of Borrower's property or Borrower's ability to repay the Loans or
perform Borrower's obligations under this Agreement or any related document.

False Statements. Any warranty, representation or statement made or furnished to
Lender by or on behalf of Grantor under this Agreement, the or the Related
Documents is false or misleading in any material respect, either now or at the
time made or furnished.

DEFECTIVE COLLATERALIZATION. This Agreement or any of the Related Documents
ceases to be in full force and effect (including failure of any collateral
documents to create a valid and perfected security interest or lien) at any time
and for any reason.

INSOLVENCY. The dissolution or termination of Grantor's existence as a going
business, the insolvency of Grantor, the appointment of a receiver for any part
of Grantor's property, any assignment for the benefit of creditors, any type of
creditor workout, or the commencement of any proceeding under any bankruptcy or
insolvency laws by or against Grantor.

CREDITOR OR FORFEITURE PROCEEDINGS. Commencement of foreclosure or forfeiture
proceedings, whether by judicial proceeding, self-help, repossession or any
other method, by any creditor of Grantor or by any governmental agency against
the Collateral or any other collateral securing the Indebtedness. This includes
a garnishment of any of Grantor's deposit accounts with Lender. However, this
Event of Default shall not apply if there is a good faith dispute by Grantor as
to the validity or reasonableness of the claim which is the basis of the
creditor or forfeiture proceeding and if Grantor gives Lender written notice of
the creditor or forfeiture proceeding and deposits with Lender monies or a
surety bond for the creditor or forfeiture proceeding, in an amount determined
by Lender, in its sole discretion, as being an adequate reserve or bond for the
dispute.

EVENTS AFFECTING GUARANTOR. Any of the preceding events occurs with respect to
any Guarantor of any of the Indebtedness or such Guarantor dies or becomes
incompetent.

Adverse Change. A material adverse change occurs in Grantor's financial
condition, or Lender believes the prospect of payment or performance of the
Indebtedness is impaired.

INSECURITY. Lender, in good faith, deems itself insecure.

RIGHTS AND REMEDIES ON DEFAULT. If an Event of Default occurs under this
Agreement, at any time thereafter, Lender shall have all the rights of a secured
party under the West Virginia Uniform Commercial Code. In addition and without
limitation, Lender may exercise any one or more of the following rights and
remedies:

Accelerate Indebtedness. Lender may declare the entire Indebtedness, including
any prepayment penalty which Grantor would be required to pay, immediately due
and payable, without notice.

SELL THE COLLATERAL. Lender shall have full power to sell, lease, transfer, or
otherwise deal with the Collateral or proceeds thereof in its own name or that
of Grantor. Lender may sell the Collateral at public auction or private sale.
Unless the Collateral threatens to decline speedily in value or is of a type
customarily sold on a recognized market, Lender will give Grantor reasonable
notice of the time after which any private sale or any other intended
disposition of the Collateral is to be made. The requirements of reasonable
notice shall be met if such notice is given at least ten (10) days before the
time of the sale or disposition. All expenses relating to the disposition of the
Collateral, including without limitation the expenses of retaking, holding
insuring, preparing for sale and selling the Collateral, shall become a part of
the Indebtedness secured by this Agreement and shall be payable on demand, with
interest at the Note rate from date of expenditure until repaid.

                               Exhibit (10.4)-p12
<PAGE>   13

                                 EXHIBIT SECTION
                                 EXHIBIT (10.4)

OTHER RIGHTS AND REMEDIES. Lender shall have all the rights and remedies of a
secured creditor under the provisions of the Uniform Commercial Code, as may be
amended from time to time. In addition, Lender shall have and may exercise any
or all other rights and remedies it may have available at law, in equity, or
otherwise.

CUMULATIVE REMEDIES. All of Lender's rights and remedies, whether evidenced by
this Agreement or the Related Documents or by any other writing, shall be
cumulative and may be exercised singularly or concurrently. Election by Lender
to pursue any remedy shall not exclude pursuit of any other remedy, and an
election to make expenditures or to take action to perform an obligation of
Grantor under this Agreement, after Grantor's failure to perform, shall not
affect Lender's right to declare a default and to exercise its remedies.

MISCELLANEOUS PROVISIONS. The following miscellaneous provisions are a part of
this Agreement:

Applicable Law. This Agreement has been delivered to Lender and accepted by
Lender in the State of West Virginia. If there is a lawsuit, Grantor agrees upon
Lender's request to submit to the jurisdiction of the courts of the State of
West Virginia. Lender and Grantor hereby waive the right to any jury trial in
any action, proceeding, or counterclaim brought by either Lender or Grantor
against the other. This Agreement shall be governed by and construed in
accordance with the laws of the State of West Virginia.

ATTORNEYS' FEES; EXPENSES. Grantor agrees to pay upon demand all of Lender's
costs and expenses, including attorneys' fees and Lender's legal expenses,
incurred in connection with the enforcement of this Agreement. Lender may pay
someone else to help enforce this Agreement, and Grantor shall pay the costs and
expenses of such enforcement. Costs arid expenses include Lender's attorneys'
fees and legal expenses whether or not there is a lawsuit, including attorneys'
fees and legal expenses for bankruptcy proceedings (and including efforts to
modify or vacate any automatic stay or injunction), appeals, and any anticipated
post-judgment collection services. Grantor also shall pay all court costs and
such additional fees as may be directed by the court. Waiver. Lender shall not
be deemed to have waived any rights under this Agreement unless such waiver is
given in writing and signed by Lender. No delay or omission on the part of
Lender in exercising any right shall operate as a waiver of such right or any
other right. A waiver by Lender of a provision of this Agreement shall not
prejudice or constitute a waiver of Lender's right otherwise to demand strict
compliance with that provision or any other provision of this Agreement. No
prior waiver by Lender, nor any course of dealing between Lender and Grantor,
shall constitute a waiver of any of Lender's rights or of any of Grantor's
obligations as to any future transactions. Whenever the consent of Lender is
required under this Agreement, the granting of such consent by Lender in any
instance shall not constitute continuing consent to subsequent instances where
such consent is required and in all cases such consent may be granted or
withheld in the sole discretion of Lender.

                               Exhibit (10.4)-p13

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00019-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00019-of-00352.parquet"}]]