Document:

SECURED REVOLVING CREDIT GRID
                                 PROMISSORY NOTE

$1,000,000.00                                                 Brooklyn, New York
                                                               December 16, 1999

                  FOR  VALUE  RECEIVED,  FERRO  FOODS  CORPORATION,  a New  York
corporation  (the "Maker"),  having its principal office c/o Liberty Food Group,
LLC, 25 53rd Street,  Brooklyn,  New York 11232  promises to pay to the order of
LIBERTY GROUP HOLDINGS,  INC. (the "Payee"),  having its principal  office at 11
52nd Street,  Brooklyn,  New York 11232,  the  principal  sum of ONE MILLION and
00/100 DOLLARS ($1,000,000.00) or so much thereof as shall have been advanced by
the Payee to the Maker as a result  of the  Maker not  satisfying  its debts and
obligations  in accordance  with the terms and  provisions of the Asset Purchase
Agreement  dated as of November  23,  1999,  by and among the Maker,  the Payee,
Frank Ferro, Sr. and Frank Gambino,  together with interest thereon,  calculated
from the date hereof,  at a rate of 10% per annum (the  "Interest  Rate") on the
unpaid principal balance hereof as follows:

1. Commencing on January 15, 2000 and on the first day of each month  thereafter
through and until November 23, 2001 (the "Maturity  Date"),  the Maker shall pay
to the Payee  interest only in arrears at the Interest  Rate on the  outstanding
principal  balance  of this Note for the  preceding  period.  Interest  shall be
computed on the basis of a 360-day year consisting of twelve 30-day months.  All
amounts due hereunder,  including without limitation,  all outstanding principal
and all accrued and unpaid  interest,  shall be due and payable on the  Maturity
Date.

2. All  payments  due in  respect of this Note shall be made by the Maker to the
Payee in lawful  currency  of the United  States of America and shall be paid to
the Payee by bank wire transfer,  certified check or bank cashier's  check.  All
payments hereon on account of principal, late payment charges and interest shall
be made to the  Payee,  at the office of the Payee  first  above set forth or at
such  other  office as may be  specified  by the Payee,  for the  account of the
holder  hereof,  unless  otherwise  specified in this Note,  all  payments  made
hereunder  shall  first be applied  to  interest  and the  balance to the unpaid
principal  amount.  If any  payment  of  principal  or  interest  falls due on a
Saturday,  Sunday or public holiday at the place of payment,  then such due date
shall be  extended  to the next  succeeding  full  business  day at the place of
payment and interest shall be payable during such extension.

3.  Payments  under this Note may be prepaid at any time or times in whole or in
part without premium or penalty.  Any such  prepayment(s)  under this Note shall
not be in an amount of less than TEN THOUSAND DOLLARS ($10,000.00).

4. Maker shall pay all expenses,  including reasonable attorney's fees and legal
expenses,  incurred by the Payee in connection with this transaction and be paid
in full on the  Maturity  Date and such  expenses  shall be added to the  unpaid
principal hereof

5. As  collateral  security for the repayment of the  principal  balance  hereof
together  with  accrued and unpaid  interest  thereon and any other  amounts due
hereunder,  the Maker  hereby  pledges  and  grants  to the  Payee a  continuing
security interest (a) in Two Million  (2,000,000)  shares common stock issued by
the Payee (f/k/a Bio-Response, Inc.) held in the name of the Maker (the "Pledged
Shares") and all options and other rights,  contractual or otherwise, in respect
thereof and all  dividends,  cash,  instruments,  investment  property and other
property  (including but not limited to, any stock dividend and any distribution
in  connection  with a stock split) from time to time  received,  receivable  or
otherwise distributed in respect of or in exchange for any or all of the Pledged
Shares  pursuant  to the Pledge  Agreement  and (b) the real  estate  (the "Real
Estate")  described in the Mortgage and Security Agreement dated the date hereof
(the  "Mortgage")  by and between the Payee and FDG, a real estate  partnership,
the Maker, and Guarantors.

6.  Notwithstanding  anything contained herein for the contrary,  on the date of
sale of the Pledged  Shares and the Real Estate,  Maker shall pay to the Payee a
prepayment  in an amount  equal to 100% of any and all  proceeds  received  as a
result of such sale,  subject only to the payment due to Asia Bank in connection
with the Real Estate (each, a "Mandatory Prepayment"). Each Mandatory Prepayment
shall be applied by Payee  against the amounts due  hereunder  in such manner as
Payee shall, in its sole discretion, elect.

7. If the entire  principal sum  hereunder is not paid when due,  whether on the
Maturity Date or earlier by reason of acceleration  of the payment hereof,  then
from and after such due date,  interest shall accrue on the unpaid principal sum
at the rate of 5% in excess of the Interest  Rate then in effect but in no event
shall such rate be in excess of the highest  legal rate  permitted by applicable
law.

8. This Note evidences  revolving  credit loans made by the Payee to Maker.  The
date and amount of each such  revolving  credit loan and each payment on account
of  principal  thereon  may be  endorsed  by the Payee  (and the Payee is hereby
authorized to endorse) on the grid attached to and made a part of this Note, and
when so endorsed shall represent  evidence thereof binding upon the Maker in the
absence of manifest  error.  Any failure by the Payee to so endorse  shall in no
way mitigate or discharge  the  obligation  of the Maker to repay any  revolving
credit loan actually made. Revolving credit loans shall be made as the Maker may
request  (in the  manner  hereinafter  set forth) up to an  aggregate  principal
amount outstanding at any one time of One Million Dollars ($1,000,000).

9. Should the indebtedness  evidenced hereby or any part thereof be collected at
law or in equity,  or in bankruptcy,  receivership or any other court proceeding
(whether at the trial or appellate  level), or should this Note be placed in the
hands of attorneys  for  collection  upon  default,  the Maker agrees to pay, in
addition to the principal,  any late payment charge and interest due and payable
hereunder,   and  all  costs  of   collecting  or  attempting  to  collect  such
indebtedness, including reasonable attorneys' fees and expenses.

10. All parties hereto, whether Maker, principal, surety, guarantor or indorser,
hereby  waive  demand,  notice of demand,  presentment,  notice of  presentment,
notice of dishonor, protest and notice of protest.

11. If any  payment  hereunder  shall not be made by Maker on the date when due,
including any mandatory  payment other than the payment of the principal balance
outstanding  and due on the Maturity Date, the Payee may impose a late charge of
five cents ($0.05) cents for each dollar  ($1.00) paid late to cover the Payee's
additional  costs to  administer  the loan  represented  hereby due to such late
payment.

12. At the option of the Payee,  this Note and the  entire  unpaid  indebtedness
represented  hereby shall become immediately due and payable upon the occurrence
of any one of the following events of default (each an "Event of Default"):

(i)       The Maker fails to make any payment due hereunder when the same is due
          and owing pursuant to the terms and conditions of this Note;

(ii) If the Maker or either of the guarantors hereof makes an assignment for the
benefit of its or his, as the case may be, creditors,  or commences a case under
the federal bankruptcy laws, or any state insolvency laws, or files any petition
or answer  seeking  for itself  any  reorganization,  arrangement,  composition,
readjustment,  liquidation,  dissolution  or similar relief under any present or
future  statute,  law  or  regulation,  or  files  an  answer  admitting  or not
contesting the material  allegations of a petition  against , or his as the case
may be, in any such proceeding, or seeks or acquiesces in the appointment of any
trustee, custodian,  receiver or liquidator over its or his, as the case may be,
assets;  if, within sixty (60) days after the  commencement of an action against
the Maker or any guarantor seeking any bankruptcy, reorganization,  arrangement,
composition, readjustment,  liquidation, dissolution or similar relief under any
present or future  statute,  such action is not dismissed or all orders  entered
therein or  proceedings  thereunder  affecting  its or his,  as the case may be,
assets have not been vacated;  (iii) A trustee,  receiver,  custodian or similar
official or agent is appointed for the Maker or either of the guarantors for any
substantial part of the Maker's or either of the guarantor's property, or all or
any substantial part of the property of the Maker or either of the guarantors is
condemned, seized or otherwise appropriated by any governmental authority; or

(iv) The Maker or either of the  guarantors  has  failed to  perform  any of the
Maker's  obligations  set forth in the Note or shall  have  breached  any of the
Maker's representations, warranties or covenants set forth in this Note.

13. THE MAKER AND THE  GUARANTORS  AGREE THAT ANY ACTION,  SUIT OR PROCEEDING IN
RESPECT OF OR ARISING OUT OF THIS NOTE MAY BE INITIATED  AND  PROSECUTED  IN THE
STATE OR FEDERAL  COURTS,  AS THE CASE MAY BE,  LOCATED IN NEW YORK COUNTY,  NEW
YORK.  THE MAKER AND THE  GUARANTORS  CONSENT  AND  SUBMIT  TO THE  EXERCISE  OF
JURISDICTION  OVER ITS PERSON BY ANY SUCH  COURT  HAVING  JURISDICTION  OVER THE
SUBJECT  MATTER,  WAIVES  PERSONAL  SERVICE OF ANY AND ALL  PROCESS  UPON IT AND
CONSENTS THAT ALL SUCH SERVICE OF PROCESS BE MADE BY REGISTERED MAIL DIRECTED TO
THE MAKER AT ITS ADDRESS  SET FORTH ABOVE OR TO ANY OTHER  ADDRESS AS MAY APPEAR
IN THE PAYEE'S RECORDS AS THE ADDRESS OF THE MAKER.

14. IN ANY ACTION, SUIT OR PROCEEDING IN RESPECT OF OR ARISING OUT OF THIS NOTE,
THE PAYEE, THE GUARANTORS,  AND THE MAKER WAIVE TRIAL BY JURY, AND THE MAKER AND
THE GUARANTORS ALSO WAIVE (I) THE RIGHT TO INTERPOSE ANY SET-OFF OR COUNTERCLAIM
OF ANY NATURE OR  DESCRIPTION,  (II) ANY OBJECTION BASED ON FORUM NON CONVENIENS
OR VENUE, AND (III) ANY CLAIM FOR CONSEQUENTIAL, PUNITIVE OR SPECIAL DAMAGES.

15.  After the  occurrence  of a default  hereunder,  the Payee may  accept  any
payments  from the Maker  without  prejudice  to the rights and  remedies of the
Payee provided herein or in the Pledge or Mortgage; and further, the designation
or allocation by the Maker of the disposition or allocation of any payments made
will not be binding upon the Payee which may allocate any and all such  payments
to interest, principal and other fees and charges due hereunder or to any one or
more of them,  in such  amounts,  priorities  and  proportions  as the Payee may
determine in its sole discretion.

16.  Notwithstanding  anything heretofore set forth to the contrary, in no event
shall any  interest  payable  under this Note exceed the maximum  interest  rate
permitted under law and any interest collected  hereunder which may be in excess
of such rate shall be applied to the reduction of principal.

17. The liability of any Maker or guarantor hereunder shall be unconditional and
shall not be in any manner  affected  by any  indulgence  whatsoever  granted or
consented to by the holder hereof,  including, but not limited to, any extension
of time,  renewal,  waiver or other  modification.  Any failure of the holder to
exercise any right  hereunder shall not be construed as a waiver of the right to
exercise  the  same  or any  other  right  at any  time  and  from  time to time
thereafter.  The Payee or any  holder  may  accept  late  payments,  or  partial
payments,  even though marked  "payment in full" or containing  words of similar
import or other  conditions,  without  waiving any of its rights.  No amendment,
modification  or  waiver  of any  provision  of this  Note  nor  consent  to any
departure by the Maker therefrom shall be effective,  irrespective of any course
of  dealing,  unless the same shall be in writing  and signed by the Payee,  and
then such waiver or consent shall be effective only in the specific instance and
for the  specific  purpose  for which  given.  This Note  cannot be  changed  or
terminated  orally or by estoppel or waiver or by any alleged oral  modification
regardless of any claimed partial performance referable thereto.

18. This Note shall be governed by and guarantor in accordance  with the laws of
the State of New York without regard to conflicts of laws principles.
                  IN WITNESS WHEREOF, the undersigned has executed the foregoing
instrument as of the day and year first above written.

WITNESS/ATTEST                                 FERRO FOODS CORPORATION

______________________________                 By: /s/
Print Name: __________________                 Name: Frank Ferro, Sr.
                                               Title:

                                               By: /s/
                                               Name: Frank Gambino
                                               Title:

Each of the undersigned  hereby jointly and severally agrees to  unconditionally
guarantee  the  payment  of all the  obligations  of the Maker  pursuant  to the
Secured Revolving Credit Grid Promissory Note and all amendments, extensions and
modifications hereof.

                                               /s/___________________________
                                               Frank Ferro, Sr.

                                               /s/___________________________
                                               Frank Gambino

<PAGE>

                                 ACKNOWLEDGMENT

                           STATE OF NEW YORK)
                                    )SS.:
                           COUNTY OF NEW YORK        )

                  On the ___ day of  October  in the year 1999  before  me,  the
undersigned,  personally  appeared Frank Ferro,  Sr.,  personally known to me or
proved to me on the basis of  satisfactory  evidence to be the individual  whose
name is  subscribed  to the within  instrument  and  acknowledged  to me that he
executed the same in his capacity,  and that by his signature on the instrument,
the individual or the person upon behalf of which the individual acted, executed
the instrument.

                                            --------------------------
                                                  Notary Public

                           STATE OF NEW YORK)
                                    )SS.:
                           COUNTY OF NEW YORK        )

                  On the ___ day of  October  in the year 1999  before  me,  the
undersigned, personally appeared Frank Gambino, personally known to me or proved
to me on the basis of satisfactory  evidence to be the individual  whose name is
subscribed to the within  instrument and acknowledged to me that he executed the
same  in his  capacity,  and  that  by his  signature  on  the  instrument,  the
individual or the person upon behalf of which the individual acted, executed the
instrument.

                                            --------------------------
                                                  Notary Public

<PAGE>
                                   Schedule A

                         LOANS AND PAYMENTS OF PRINCIPAL

<TABLE>
<CAPTION>

                                         Amount             Unpaid            Amount of
                       Loan                of             Principal           Principal           Notation
     Date              No.                Loan               Paid              Balance            Made By
     ----              ----         -     -----       --     -----        -    --------           -------
<S>             <C>                 <C>               <C>                 <C>                 <C>
--------------- ------------------- ----------------- ------------------- ------------------- -----------------

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--------------- ------------------- ----------------- ------------------- ------------------- -----------------
</TABLE>SECURED REVOLVING CREDIT GRID
                                 PROMISSORY NOTE

$1,000,000.00                                                 Brooklyn, New York
                                                                    May  1, 2000

                  FOR  VALUE  RECEIVED,  FERRO  FOODS  CORPORATION,  a New  York
corporation  (the "Maker"),  having its principal office c/o Liberty Food Group,
LLC, 25 53rd Street,  Brooklyn,  New York 11232  promises to pay to the order of
LIBERTY GROUP HOLDINGS,  INC. (the "Payee"),  having its principal  office at 11
52nd Street,  Brooklyn,  New York 11232,  the  principal  sum of ONE MILLION and
00/100 DOLLARS ($1,000,000.00) or so much thereof as shall have been advanced by
the Payee to the Maker as a result  of the  Maker not  satisfying  its debts and
obligations  in accordance  with the terms and  provisions of the Asset Purchase
Agreement  dated as of November  23,  1999,  by and among the Maker,  the Payee,
Frank Ferro, Sr. and Frank Gambino,  together with interest thereon,  calculated
from the date hereof,  at a rate of 10% per annum (the  "Interest  Rate") on the
unpaid principal balance hereof as follows:

1.  Commencing  on June 1, 2000 and on the first  day of each  month  thereafter
through and until May 31, 2001 (the "Maturity Date"), the Maker shall pay to the
Payee interest only in arrears at the Interest Rate on the outstanding principal
balance of this Note for the preceding period. Interest shall be computed on the
basis of a 360-day year  consisting  of twelve  30-day  months.  All amounts due
hereunder,  including  without  limitation,  all  outstanding  principal and all
accrued and unpaid interest, shall be due and payable on the Maturity Date.

2. All  payments  due in  respect of this Note shall be made by the Maker to the
Payee in lawful  currency  of the United  States of America and shall be paid to
the Payee by bank wire transfer,  certified check or bank cashier's  check.  All
payments hereon on account of principal, late payment charges and interest shall
be made to the  Payee,  at the office of the Payee  first  above set forth or at
such  other  office as may be  specified  by the Payee,  for the  account of the
holder  hereof,  unless  otherwise  specified in this Note,  all  payments  made
hereunder  shall  first be applied  to  interest  and the  balance to the unpaid
principal  amount.  If any  payment  of  principal  or  interest  falls due on a
Saturday,  Sunday or public holiday at the place of payment,  then such due date
shall be  extended  to the next  succeeding  full  business  day at the place of
payment and interest shall be payable during such extension.

3.  Payments  under this Note may be prepaid at any time or times in whole or in
part without premium or penalty.  Any such  prepayment(s)  under this Note shall
not be in an amount of less than TEN THOUSAND DOLLARS ($10,000.00).

4. Maker shall pay all expenses,  including reasonable attorney's fees and legal
expenses,  incurred by the Payee in connection with this transaction and be paid
in full on the  Maturity  Date and such  expenses  shall be added to the  unpaid
principal hereof.

5. As  collateral  security for the repayment of the  principal  balance  hereof
together  with  accrued and unpaid  interest  thereon and any other  amounts due
hereunder,  the Maker  hereby  pledges  and  grants  to the  Payee a  continuing
security interest the real estate (the "Real Estate")  described in the Mortgage
and Security  Agreement dated December 16, 1999 (the  "Mortgage") by and between
the Payee and Maker.

6.  Notwithstanding  anything contained herein for the contrary,  on the date of
sale of the Real Estate,  Maker shall pay to the Payee a prepayment in an amount
equal to 100% of any and all proceeds received as a result of such sale, subject
only to the payment due to Asia Bank in connection with the Real Estate (each, a
"Mandatory  Prepayment").  Each Mandatory  Prepayment  shall be applied by Payee
against the amounts due  hereunder  in such manner as Payee  shall,  in its sole
discretion, elect.

7. If the entire  principal sum  hereunder is not paid when due,  whether on the
Maturity Date or earlier by reason of acceleration  of the payment hereof,  then
from and after such due date,  interest shall accrue on the unpaid principal sum
at the rate of 5% in excess of the Interest  Rate then in effect but in no event
shall such rate be in excess of the highest  legal rate  permitted by applicable
law.

8. This Note evidences  revolving  credit loans made by the Payee to Maker.  The
date and amount of each such  revolving  credit loan and each payment on account
of  principal  thereon  may be  endorsed  by the Payee  (and the Payee is hereby
authorized to endorse) on the grid attached to and made a part of this Note, and
when so endorsed shall represent  evidence thereof binding upon the Maker in the
absence of manifest  error.  Any failure by the Payee to so endorse  shall in no
way mitigate or discharge  the  obligation  of the Maker to repay any  revolving
credit loan actually made. Revolving credit loans shall be made as the Maker may
request  (in the  manner  hereinafter  set forth) up to an  aggregate  principal
amount outstanding at any one time of One Million Dollars ($1,000,000).

9. Should the indebtedness  evidenced hereby or any part thereof be collected at
law or in equity,  or in bankruptcy,  receivership or any other court proceeding
(whether at the trial or appellate  level), or should this Note be placed in the
hands of attorneys  for  collection  upon  default,  the Maker agrees to pay, in
addition to the principal,  any late payment charge and interest due and payable
hereunder,   and  all  costs  of   collecting  or  attempting  to  collect  such
indebtedness, including reasonable attorneys' fees and expenses.

10. All parties hereto, whether Maker, principal, surety, guarantor or indorser,
hereby  waive  demand,  notice of demand,  presentment,  notice of  presentment,
notice of dishonor, protest and notice of protest.

11. If any  payment  hereunder  shall not be made by Maker on the date when due,
including any mandatory  payment other than the payment of the principal balance
outstanding  and due on the Maturity Date, the Payee may impose a late charge of
five cents ($0.05) cents for each dollar  ($1.00) paid late to cover the Payee's
additional  costs to  administer  the loan  represented  hereby due to such late
payment.

12. At the option of the Payee,  this Note and the  entire  unpaid  indebtedness
represented  hereby shall become immediately due and payable upon the occurrence
of any one of the following events of default (each an "Event of Default"):

(i)       The Maker fails to make any payment due hereunder when the same is due
          and owing pursuant to the terms and conditions of this Note;

(ii) If the Maker or either of the guarantors hereof makes an assignment for the
benefit of its or his, as the case may be, creditors,  or commences a case under
the federal bankruptcy laws, or any state insolvency laws, or files any petition
or answer  seeking  for itself  any  reorganization,  arrangement,  composition,
readjustment,  liquidation,  dissolution  or similar relief under any present or
future  statute,  law  or  regulation,  or  files  an  answer  admitting  or not
contesting the material  allegations of a petition  against , or his as the case
may be, in any such proceeding, or seeks or acquiesces in the appointment of any
trustee, custodian,  receiver or liquidator over its or his, as the case may be,
assets;  if, within sixty (60) days after the  commencement of an action against
the Maker or any guarantor seeking any bankruptcy, reorganization,  arrangement,
composition, readjustment,  liquidation, dissolution or similar relief under any
present or future  statute,  such action is not dismissed or all orders  entered
therein or  proceedings  thereunder  affecting  its or his,  as the case may be,
assets have not been vacated;  (iii) A trustee,  receiver,  custodian or similar
official or agent is appointed for the Maker or either of the guarantors for any
substantial part of the Maker's or either of the guarantor's property, or all or
any substantial part of the property of the Maker or either of the guarantors is
condemned, seized or otherwise appropriated by any governmental authority; or

(iv) The Maker or either of the  guarantors  has  failed to  perform  any of the
Maker's  obligations  set forth in the Note or shall  have  breached  any of the
Maker's representations, warranties or covenants set forth in this Note.

13. THE MAKER AND THE  GUARANTORS  AGREE THAT ANY ACTION,  SUIT OR PROCEEDING IN
RESPECT OF OR ARISING OUT OF THIS NOTE MAY BE INITIATED  AND  PROSECUTED  IN THE
STATE OR FEDERAL  COURTS,  AS THE CASE MAY BE,  LOCATED IN NEW YORK COUNTY,  NEW
YORK.  THE MAKER AND THE  GUARANTORS  CONSENT  AND  SUBMIT  TO THE  EXERCISE  OF
JURISDICTION  OVER ITS PERSON BY ANY SUCH  COURT  HAVING  JURISDICTION  OVER THE
SUBJECT  MATTER,  WAIVES  PERSONAL  SERVICE OF ANY AND ALL  PROCESS  UPON IT AND
CONSENTS THAT ALL SUCH SERVICE OF PROCESS BE MADE BY REGISTERED MAIL DIRECTED TO
THE MAKER AT ITS ADDRESS  SET FORTH ABOVE OR TO ANY OTHER  ADDRESS AS MAY APPEAR
IN THE PAYEE'S RECORDS AS THE ADDRESS OF THE MAKER.

14. IN ANY ACTION, SUIT OR PROCEEDING IN RESPECT OF OR ARISING OUT OF THIS NOTE,
THE PAYEE, THE GUARANTORS,  AND THE MAKER WAIVE TRIAL BY JURY, AND THE MAKER AND
THE GUARANTORS ALSO WAIVE (I) THE RIGHT TO INTERPOSE ANY SET-OFF OR COUNTERCLAIM
OF ANY NATURE OR  DESCRIPTION,  (II) ANY OBJECTION BASED ON FORUM NON CONVENIENS
OR VENUE, AND (III) ANY CLAIM FOR CONSEQUENTIAL, PUNITIVE OR SPECIAL DAMAGES.

15.  After the  occurrence  of a default  hereunder,  the Payee may  accept  any
payments  from the Maker  without  prejudice  to the rights and  remedies of the
Payee provided herein or in the Pledge or Mortgage; and further, the designation
or allocation by the Maker of the disposition or allocation of any payments made
will not be binding upon the Payee which may allocate any and all such  payments
to interest, principal and other fees and charges due hereunder or to any one or
more of them,  in such  amounts,  priorities  and  proportions  as the Payee may
determine in its sole discretion.

16.  Notwithstanding  anything heretofore set forth to the contrary, in no event
shall any  interest  payable  under this Note exceed the maximum  interest  rate
permitted under law and any interest collected  hereunder which may be in excess
of such rate shall be applied to the reduction of principal.

17. The liability of any Maker or guarantor hereunder shall be unconditional and
shall not be in any manner  affected  by any  indulgence  whatsoever  granted or
consented to by the holder hereof,  including, but not limited to, any extension
of time,  renewal,  waiver or other  modification.  Any failure of the holder to
exercise any right  hereunder shall not be construed as a waiver of the right to
exercise  the  same  or any  other  right  at any  time  and  from  time to time
thereafter.  The Payee or any  holder  may  accept  late  payments,  or  partial
payments,  even though marked  "payment in full" or containing  words of similar
import or other  conditions,  without  waiving any of its rights.  No amendment,
modification  or  waiver  of any  provision  of this  Note  nor  consent  to any
departure by the Maker therefrom shall be effective,  irrespective of any course
of  dealing,  unless the same shall be in writing  and signed by the Payee,  and
then such waiver or consent shall be effective only in the specific instance and
for the  specific  purpose  for which  given.  This Note  cannot be  changed  or
terminated  orally or by estoppel or waiver or by any alleged oral  modification
regardless of any claimed partial performance referable thereto.

18. This Note shall be governed by and guarantor in accordance  with the laws of
the State of New York without regard to conflicts of laws principles.
                  IN WITNESS WHEREOF, the undersigned has executed the foregoing
instrument as of the day and year first above written.

WITNESS/ATTEST                                 FERRO FOODS CORPORATION

______________________________                 By: /s/
Print Name: __________________                 Name: Frank Ferro, Sr.
                                               Title:

                                               By:/s/
                                               Name: Frank Gambino
                                               Title:

Each of the undersigned  hereby jointly and severally agrees to  unconditionally
guarantee  the  payment  of all the  obligations  of the Maker  pursuant  to the
Secured Revolving Credit Grid Promissory Note and all amendments, extensions and
modifications hereof.

                                               /s/___________________________
                                               Frank Ferro, Sr.

                                               /s/___________________________
                                               Frank Gambino

<PAGE>

                                 ACKNOWLEDGMENT

                               STATE OF NEW YORK)
                                      )SS.:
                              COUNTY OF NEW YORK )

                  On the ___ day of  October  in the year 1999  before  me,  the
undersigned,  personally  appeared Frank Ferro,  Sr.,  personally known to me or
proved to me on the basis of  satisfactory  evidence to be the individual  whose
name is  subscribed  to the within  instrument  and  acknowledged  to me that he
executed the same in his capacity,  and that by his signature on the instrument,
the individual or the person upon behalf of which the individual acted, executed
the instrument.

                                            --------------------------
                                                  Notary Public

                           STATE OF NEW YORK)
                                    )SS.:
                           COUNTY OF NEW YORK        )

                  On the ___ day of  October  in the year 1999  before  me,  the
undersigned, personally appeared Frank Gambino, personally known to me or proved
to me on the basis of satisfactory  evidence to be the individual  whose name is
subscribed to the within  instrument and acknowledged to me that he executed the
same  in his  capacity,  and  that  by his  signature  on  the  instrument,  the
individual or the person upon behalf of which the individual acted, executed the
instrument.

                                            --------------------------
                                                  Notary Public

<PAGE>
                                   Schedule A

                         LOANS AND PAYMENTS OF PRINCIPAL

<TABLE>
<CAPTION>

                                         Amount             Unpaid            Amount of
                       Loan                of             Principal           Principal           Notation
     Date              No.                Loan               Paid              Balance            Made By
     ----              ----         -     -----       --     -----        -    --------           -------
<S>             <C>                 <C>               <C>                 <C>                 <C>
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</TABLE>

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00010-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00010-of-00352.parquet"}]]