Document:

SEAIR GROUP, INC.
                               2000 INCENTIVE PLAN

                                   ARTICLE I.

                                   DEFINITIONS

          1.01 ADMINISTRATOR  means the Board and any delegate of the Board that
is appointed in accordance with Article III.

          1.02 AGREEMENT means a written  agreement  (including any amendment or
supplement  thereto) between the Company and a Participant  specifying the terms
and conditions of a Stock Award or Option granted to such Participant.

          1.03 BOARD means the Board of Directors of the Company.

          1.04  CHANGE IN CONTROL  shall mean an event or series of events  that
would be  required  to be  described  as a change in control of the Company in a
proxy or information statement distributed by the Company pursuant to Section 14
of the  Exchange  Act in  response  to Item  6(e) of  Schedule  14A  promulgated
thereunder or otherwise adopted. The determination  whether and when a change in
control  has  occurred or is about to occur shall be made by the Board in office
immediately   prior  to  the  occurrence  of  the  event  or  series  of  events
constituting such change in control.

          1.05 CODE means the Internal  Revenue Code of 1986, and any amendments
thereto.

          1.06 COMMON STOCK means the common stock of the Company.

          1.07 COMPANY means Seair Group, Inc.

          1.08 CONTROL  CHANGE DATE means the  occurrence of the event or series
of events constituting a Change in Control as determined by the Board.

          1.09  EXCHANGE  ACT  means the  Securities  Exchange  Act of 1934,  as
amended and as in effect on the date of this Agreement.

          1.10 FAIR MARKET VALUE  means,  on any given date,  the closing  price
(or, if there is none,  the  average of the closing bid and asked  price) of the
Common Stock on such quotation system or principal  securities exchange on which
the Common Stock is traded on such day, or, if the Common Stock is not so traded
on such day,  then on the next  preceding  day that the Common Stock was traded,
all as reported by such source as the Administrator may select.

          1.11  FORFEITABLE  SHARES  shall have the meaning set forth in Section
9.04.

          1.12 OPTION means a stock option that  entitles the holder to purchase
from the  Company a stated  number  of  shares of Common  Stock at the price set
forth in an Agreement.

          1.13  PARTICIPANT  means an  employee  of and  non-employee  director,
advisor and independent consultant to the Company or a Related Entity, including
an employee who is a member of

<PAGE>

the Board,  who satisfies the  requirements of Article IV and is selected by the
Administrator to receive a Stock Award, an Option or a combination thereof.

          1.14 PLAN means the Company's 2000 Incentive Plan.

          1.15  RELATED  ENTITY  means any entity that  directly or  indirectly,
through one or more intermediaries,  controls,  or is controlled by, or is under
common control with, the Company.

          1.16 STOCK AWARD means Common  Stock  awarded to a  Participant  under
Article IX.

          1.17 STOCKHOLDERS means the stockholders of the Company.

                                   ARTICLE II.

                                    PURPOSES

          The Plan is intended  to assist the  Company  and Related  Entities in
recruiting  and  retaining  employees,   directors,  officers,  consultants  and
advisors,  and in compensating  such individuals by enabling such individuals to
participate in the future success of the Company and the Related Entities and to
associate  their interests with those of the Company and its  Stockholders.  The
Plan is  intended  to  permit  the grant of Stock  Awards  and the grant of both
Options qualifying under Section 422 of the Code ("incentive stock options") and
Options not so qualifying.  No Option that is intended to be an incentive  stock
option shall be invalid for failure to qualify as an incentive stock option. The
proceeds  received by the Company from the sale of Common Stock pursuant to this
Plan shall be used for general corporate purposes.

                                  ARTICLE III.

                                 ADMINISTRATION

          The Plan shall be administered by the Administrator. The Administrator
shall have  authority  to grant Stock  Awards and  Options  upon such terms (not
inconsistent with the provisions of this Plan) as the Administrator may consider
appropriate.  Such terms may include  conditions (in addition to those contained
in this  Plan) on the  exercisability  of all or any part of an Option or on the
transferability or forfeitability of a Stock Award,  including by way of example
and not  limitation,  conditions  on which  Participants  may defer  receipt  of
benefits under the Plan,  requirements that the Participant complete a specified
period of employment  with or service to the Company or a Related  Entity,  that
the  Company  achieve a specified  level of  financial  performance  or that the
Company achieve a specified level of financial return.  Notwithstanding any such
conditions,  the  Administrator  may, in its discretion,  accelerate the time at
which any Option may be exercised, or the time at which a Stock Award may become
transferable  or  nonforfeitable.  In  addition,  the  Administrator  shall have
complete  authority to interpret  all  provisions of this Plan, to prescribe the
form  of  Agreements,  to  adopt,  amend,  and  rescind  rules  and  regulations
pertaining   to  the   administration   of  the  Plan  and  to  make  all  other
determinations  necessary or advisable for the  administration of this Plan. The
express grant in the Plan of any specific power to the  Administrator  shall not
be  construed  as limiting  any power or  authority  of the  Administrator.  Any
decision made, or action taken, by the  Administrator  or in connection with the
administration  of  this  Plan  shall  be  final  and  conclusive.  Neither  the
Administrator  nor any  member of the Board  shall be liable for any act done in
good faith with  respect to this Plan or any  Agreement,  Option or Stock Award.
All expenses of administering this Plan shall be borne by the Company.

<PAGE>

          The Board, in its discretion, may appoint a committee of the Board and
delegate to such committee all or part of the Board's  authority and duties with
respect to the Plan.  The Board may revoke or amend the terms of a delegation at
any time but such action shall not  invalidate  any prior actions of the Board's
delegate or delegates that were consistent with the terms of the Plan.

                                   ARTICLE IV.

                                   ELIGIBILITY

          Section 4.01 GENERAL. Any employee,  director,  officer, consultant or
advisor  to, the  Company or a Related  Entity  (including  a  corporation  that
becomes a Related  Entity  after  the  adoption  of this  Plan) is  eligible  to
participate  in  this  Plan  if  the  Administrator,  in  its  sole  discretion,
determines that such person has contributed  significantly or can be expected to
contribute  significantly  to the  profits or growth of the Company or a Related
Entity.  Directors of the Company who are  employees of the Company or a Related
Entity may be selected to participate in this Plan.

          Section 4.02 GRANTS. The Administrator  will designate  individuals to
whom Stock  Awards and Options are to be granted and will  specify the number of
shares of Common  Stock  subject  to each award or grant.  All Stock  Awards and
Options granted under this Plan shall be evidenced by Agreements  which shall be
subject to the applicable  provisions of this Plan and to such other  provisions
as the  Administrator  may adopt. No Participant may be granted  incentive stock
options  (under all incentive  stock option plans of the Company and any Related
Entity)  which are first  exercisable  in any calendar  year for stock having an
aggregate  Fair Market  Value  (determined  as of the date an Option is granted)
that exceed the  limitation  prescribed  by Code section  422(d).  The preceding
annual limitation shall not apply with respect to Options that are not incentive
stock options.

                                   ARTICLE V.

                              STOCK SUBJECT TO PLAN

          Section 5.01 SHARES  ISSUED.  Upon the award of shares of Common Stock
pursuant to a Stock Award, the Company may issue shares of Common Stock from its
authorized  but unissued  Common  Stock.  Upon the  exercise of any Option,  the
Company  may  deliver to the  Participant  (or the  Participant's  broker if the
Participant so directs), shares of Common Stock from its authorized but unissued
Common Stock.

          Section 5.02 AGGREGATE LIMIT.  The maximum  aggregate number of shares
of Common  Stock that may be issued  under this Plan shall not exceed  5,000,000
shares.

          Section 5.03  REALLOCATION OF SHARES.  If an Option is terminated,  in
whole or in part, for any reason other than its exercise, or if a Stock Award is
forfeited in whole or in part, the number of shares of Common Stock allocated to
the Option or Stock Award or portion thereof may be reallocated to other Options
and Stock Awards to be granted under this Plan.

<PAGE>

                                  ARTICLE VI.

                              OPTION EXERCISE PRICE

          The price per share for Common  Stock  purchased on the exercise of an
Option shall be determined by the Administrator on the date of grant;  provided,
however,  that the price per share for Common Stock purchased on the exercise of
an Option  that is an  incentive  stock  option  shall not be less than the Fair
Market Value on the date the Option is granted.

                                  ARTICLE VII.

                               EXERCISE OF OPTIONS

          Section 7.01 MAXIMUM  OPTION  PERIOD.  The maximum  period in which an
Option may be exercised shall be determined by the  Administrator on the date of
grant,  except  that no  Option  that is an  incentive  stock  option  shall  be
exercisable  after the  expiration  of ten years  from the date such  Option was
granted.  The terms of any Option that is an incentive  stock option may provide
that it is exercisable for a period less than such maximum period.

          Section 7.02  NONTRANSFERABILITY.  Any Option  granted under this Plan
shall  be  nontransferable  except  by  will  or by  the  laws  of  descent  and
distribution.  In the event of any such transfer, the Option must be transferred
to the same person or person(s).  During the lifetime of the Participant to whom
the Option is granted,  the Option may be exercised only by the Participant.  No
right or interest of a Participant in any Option shall be liable for, or subject
to, any lien, obligation, or liability of such Participant.

          Section  7.03  EMPLOYEE  STATUS.   For  purposes  of  determining  the
applicability  of Section 422 of the Code (relating to incentive stock options),
or in the event that the terms of any Option  provide  that it may be  exercised
only during employment or within a specified period of time after termination of
employment,  the  Administrator  may decide to what extent leaves of absence for
governmental  or  military  service,  illness,  temporary  disability,  or other
reasons shall not be deemed interruptions of continuous employment.

          Section  7.04  CHANGE  IN  CONTROL.   Section  7.01  to  the  contrary
notwithstanding,  after a  Control  Change  Date  each  Option  shall  be  fully
exercisable thereafter in accordance with the terms of the applicable Agreement.
If not  sooner  exercisable  under  the  terms of the  applicable  Agreement,  a
Participant's  Option shall be fully  exercisable  (i) as of his  termination of
employment if his  employment  terminates  after a Control Change Date and he is
terminated without cause or following his refusal to move to another location or
(ii) as of the date that  there is a  material  reduction  in the  Participant's
compensation or duties if such reduction occurs after a Control Change Date. For
purposes of the preceding  sentence the term "cause" means a willful  neglect of
responsibilities to the Company or a Related Entity.

                                 ARTICLE VIII.

                               METHOD OF EXERCISE

          Section 8.01  EXERCISE.  Subject to the provisions of Articles VII and
XI, an Option may be exercised in whole at any time or in part from time to time
at such times and in  compliance  with such  requirements  as the  Administrator
shall determine. An Option granted under this Plan may be exercised

<PAGE>

with  respect to any number of whole  shares less than the full number for which
the Option could be exercised.  A partial exercise of an Option shall not affect
the right to exercise the Option from time to time in accordance  with this Plan
and the applicable Agreement with respect to the remaining shares subject to the
Option.

          Section 8.02  PAYMENT.  Unless  otherwise  provided by the  Agreement,
payment of the Option  exercise  price shall be made in cash.  If the  Agreement
provides,  or in the  discretion  of the  Board,  payment  of all or part of the
Option price may be made by surrendering  shares of Common Stock to the Company,
including  by allowing the Company to deduct from the number of shares of Common
Stock deliverable upon exercise of the Option, a number of such shares which has
an aggregate  Fair Market Value,  determined as of the day preceding the date of
exercise of the Option,  equal to the aggregate Option exercise price. If Common
Stock is used to pay all or part of the Option  price,  the  shares  surrendered
must have a Fair Market Value  (determined  as of the day  preceding the date of
exercise) that is not less than such price or part thereof.

          Section 8.03 INSTALLMENT  PAYMENT. If the Agreement  provides,  and if
the  Participant is employed by the Company on the date the Option is exercised,
payment of all or part of the Option price may be made in installments.  In that
event  the  Company  may,  if so  determined  by  the  Administrator,  lend  the
Participant  an  amount  equal to not more than 90% of the  Option  price of the
shares acquired by the exercise of the Option. This amount shall be evidenced by
the  Participant's  promissory  note and shall be  payable in not more than five
equal  annual  installments,  unless the amount of the loan  exceeds the maximum
loan value for the shares purchased,  which value shall be established from time
to time by regulations of the Board of Governors of the Federal  Reserve System.
In that event, the note shall be payable in equal quarterly  installments over a
period of time not to exceed five years.

          The  Participant  shall pay  interest  on the  unpaid  balance  at the
minimum rate  necessary to avoid  imputed  interest or original  issue  discount
under the Code. All shares acquired with cash borrowed from the Company shall be
pledged to the Company as security for the repayment thereof.  In the discretion
of  the  Administrator,  shares  of  stock  may be  released  from  such  pledge
proportionately  as  payments on the note  (together  with  interest)  are made,
provided the release of such shares complies with the regulations of the Federal
Reserve System relating to securities credit transactions then applicable. While
shares  are so  pledged,  and so long  as  there  has  been  no  default  in the
installment  payments,  such shares shall remain  registered  in the name of the
Participant,  and he shall have the right to vote such shares and to receive all
dividends thereon.

          Section 8.04 SHAREHOLDER  RIGHTS. No Participant shall have any rights
as a stockholder  with respect to shares  subject to an Option until the date of
exercise of such Option.

                                  ARTICLE IX.

                                  STOCK AWARDS

          Section 9.01 AWARDS.  In accordance with the provisions of Article IV,
the Administrator  will designate each individual to whom a Stock Award is to be
made and will  specify  the  number of shares of Common  Stock  covered  by such
awards.

          Section 9.02 VESTING. The Administrator, on the date of the award, may
prescribe that a Participant's rights in the Stock Award shall be forfeitable or
otherwise restricted for a period of time set forth in the Agreement.  By way of
example and not of limitation,  the restrictions may postpone transferability of
the shares or may provide that the shares will be  forfeited if the  Participant
separates

<PAGE>

from the service of the Company and its Related  Entities  before the expiration
of a stated term or if the Company and its Related  Entities or the  Participant
fails to achieve stated objectives.

          Section  9.03  CHANGE  IN  CONTROL..  Section  9.02  to  the  contrary
notwithstanding,  after a Control  Change  Date each  Stock  Award  will  become
transferable and  nonforfeitable  in accordance with the terms of the applicable
Agreement.  If not sooner transferable and nonforfeitable under the terms of the
applicable  Agreement,  a  Participant's  interest  in a Stock  Award  shall  be
transferable and  nonforfeitable  (i) as of his termination of employment if his
employment  terminates after a Control Change Date and he is terminated  without
cause or  following  his  refusal to move to another  location or (ii) as of the
date that there is a material  reduction in the  Participant's  compensation  or
duties if such reduction occurs after a Control Change Date. For purposes of the
preceding sentence the term "cause" means a willful neglect of  responsibilities
to the Company or a Related Entity.

          Section  9.04  STOCKHOLDER  RIGHTS.  If all or any  portion of a Stock
Award  is  forfeitable  pursuant  to the  Agreement,  at all  times  prior  to a
forfeiture  thereof,  a Participant  will have all rights of a Stockholder  with
respect to  forfeitable  shares of the Stock Award (the  "Forfeitable  Shares"),
including  the  right to  receive  dividends  and vote the  Forfeitable  Shares;
provided,  however,  that (i) a  Participant  may not  sell,  transfer,  pledge,
exchange,  hypothecate, or otherwise dispose of the Forfeitable Shares, (ii) the
Company shall retain  custody of the  certificates  evidencing  the  Forfeitable
Shares,  and (iii) the  Participant  will  deliver to the Company a stock power,
endorsed in blank, with respect to the Forfeitable  Shares.  The limitations set
forth in the preceding sentence shall not apply after the Forfeitable Shares are
no longer forfeitable.

                                   ARTICLE X.

                     ADJUSTMENT UPON CHANGE IN COMMON STOCK

          The maximum  number of shares as to which Options and Stock Awards may
be granted under this Plan shall be proportionately  adjusted,  and the terms of
outstanding  Stock  Awards and  Options  shall be  adjusted,  as the Board shall
determine to be equitably required in the event that (a) the Company (i) effects
one or more stock dividends, stock split-ups,  subdivisions or consolidations of
shares or (ii) engages in a transaction to which Section 424 of the Code applies
or (b)  there  occurs  any  other  event  which,  in the  judgment  of the Board
necessitates  such action.  Any  determination  made under this Article X by the
Board shall be final and conclusive.

          The  issuance  by the  Company  of  shares of stock of any  class,  or
securities  convertible into shares of stock of any class, for cash or property,
or for labor or services, either upon direct sale or upon the exercise of rights
or warrants to subscribe  therefor,  or upon conversion of shares or obligations
of the  Company  convertible  into such  shares or other  securities,  shall not
affect,  and no  adjustment  by reason  thereof  shall be made with  respect to,
outstanding Stock Awards or Options.

          The Board may make Stock Awards and may grant Options in  substitution
for performance  shares,  phantom  shares,  stock awards,  stock options,  stock
appreciation  rights,  or similar  awards held by an  individual  who becomes an
employee of the Company or a Related  Entity in  connection  with a  transaction
described   in  clause  (ii)  of  the  first   paragraph   of  this  Article  X.
Notwithstanding  any provision of the Plan (other than the limitation of Article
V), the terms of such substituted  Stock Award(s) or Option grant(s) shall be as
the Board, in its discretion, determines is appropriate.

<PAGE>

                                  ARTICLE XI.

                             COMPLIANCE WITH LAW AND
                          APPROVAL OF REGULATORY BODIES

          No Option shall be  exercisable,  no Common Stock shall be issued,  no
certificates for shares of Common Stock shall be delivered, and no payment shall
be made under this Plan except in  compliance  with all  applicable  federal and
state laws and  regulations  (including,  without  limitation,  withholding  tax
requirements),  any listing  agreement to which the Company is a party,  and the
rules of all  domestic  stock  exchanges  on which the  Company's  shares may be
listed. The Company shall have the right to rely on an opinion of its counsel as
to such compliance. Any share certificate issued to evidence Common Stock when a
Stock Award is granted or for which an Option is exercised may bear such legends
and statements as the Administrator may deem advisable to assure compliance with
federal and state laws and  regulations.  No Common  Stock  shall be issued,  no
certificate  for shares  shall be delivered  and no payment  shall be made under
this Plan  until the  Company  has  obtained  such  consent or  approval  as the
Administrator may deem advisable from regulatory bodies having jurisdiction over
such matters.

                                  ARTICLE XII.

                               GENERAL PROVISIONS

          Section 12.01 EFFECT ON EMPLOYMENT. Neither the adoption of this Plan,
its  operation,  nor any documents  describing or referring to this Plan (or any
part  thereof)  shall  confer upon any  individual  any right to continue in the
employ or  service of the  Company or a Related  Entity or in any way affect any
right and power of the Company or a Related  Entity to terminate the  employment
or service of any  individual  at any time with or  without  assigning  a reason
therefor.

          Section 12.02  DISPOSITION  OF STOCK.  A Participant  shall notify the
Administrator of any sale or other disposition of Common Stock acquired pursuant
to an Option  that was an  incentive  stock  option if such sale or  disposition
occurs (i) within two years of the grant of an Option or (ii) within one year of
the  issuance of the Common  Stock to the  Participant.  Such notice shall be in
writing and directed to the Secretary of the Company.

          Section  12.03  RULES  OF  CONSTRUCTION.  Headings  are  given  to the
articles  and  sections  of this Plan  solely  as a  convenience  to  facilitate
reference. The reference to any statute,  regulation,  or other provision of law
shall be construed to refer to any  amendment to or successor of such  provision
of law.

          Section  12.04  EMPLOYEE  STATUS.  In the event  that the terms of any
Stock  Award or the grant of any  Option  provide  that  shares may be issued or
become  transferable  and  nonforfeitable  thereunder only after completion of a
specified  period of employment,  the  Administrator  may decide in each case to
what extent leaves of absence for  governmental  or military  service,  illness,
temporary  disability,  or other  reasons shall not be deemed  interruptions  of
continuous employment.

          Section  12.05  LIMITATION  ON  AWARDS.   Notwithstanding   any  other
provision  of the Plan,  if any award under this Plan,  either alone or together
with payments that a Participant  has the right to receive from the Company or a
Related Entity,  would  constitute a "parachute  payment" (as defined in section
280G of the Code), all such payments shall be reduced to the largest amount that
will  result in no portion  being  subject to the excise tax  imposed by section
4999 of the Code.

<PAGE>

                                  ARTICLE XIII.

                                    AMENDMENT

          The  Board  may  amend  or  terminate  this  Plan  from  time to time;
provided,  however,  that no amendment shall,  without a Participant's  consent,
adversely affect any rights of such Participant  under any Stock Award or Option
outstanding at the time such amendment is made.

                                  ARTICLE XIV.

                                DURATION OF PLAN

          No Stock Award or Option may be granted  under this Plan more than ten
years after the date the Plan is adopted by the Board.

                                  ARTICLE XV.

                             EFFECTIVE DATE OF PLAN

          Stock  Awards  and  Options  may be  granted  under this Plan upon its
adoption by the Board,  provided that no incentive stock option will continue to
be effective unless this Plan is approved by a majority of the votes entitled to
be cast by the Stockholders, voting either in person or by proxy, at a duly held
Stockholders'  meeting or by the consent of stockholders owning more than 50% of
shares of the Common Stock within twelve months of such adoption.----------------------------------------------
                 ----------------------------------------------

                          CREDIT AND SECURITY AGREEMENT

                                 BY AND BETWEEN

                          OUR FOOD PRODUCTS GROUP, INC.

                                       AND

                        WELLS FARGO BUSINESS CREDIT, INC.

                            Dated as of: May 31, 2000

                 ----------------------------------------------
                 ----------------------------------------------

<PAGE>

                                TABLE OF CONTENTS
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<S>                                                                                        <C>
ARTICLE I - DEFINITIONS.....................................................................1
            Section 1.1  Definitions........................................................1
            Section 1.2  Cross References..................................................11

ARTICLE II- AMOUNT AND TERMS OF THE CREDIT FACILITY........................................11
            Section 2.1     Revolving Advances.............................................11
            Section 2.2     Term Advances..................................................12
            Section 2.3     Payment of Term Note...........................................12
            Section 2.4     Interest; Minimum Interest Charge; Default Interest;
                            Participations; Usury..........................................13
            Section 2.5     Fees...........................................................15
            Section 2.6     Computation of Interest and Fees; When Interest Due and
                            Payable........................................................15
            Section 2.7     Capital Adequacy...............................................15
            Section 2.8     Voluntary Prepayment; Reduction of the Maximum Line;
                            Termination of the Credit Facility by the Borrower.............16
            Section 2.9     Termination, Line Reduction and Prepayment Fees; Waiver of
                             Termination, Prepayment and Line Reduction Fees...............17
            Section 2.10    Mandatory Prepayment...........................................17
            Section 2.11    Payment........................................................18
            Section 2.12    Payment on Non-Banking Days....................................18
            Section 2.13    Use of Proceeds................................................18
            Section 2.14    Liability Records..............................................18

ARTICLE III - SECURITY INTEREST; OCCUPANCY; SETOFF.........................................18
            Section 3.1     Grant of Security Interest.....................................18
            Section 3.2     Notification of Account Debtors and Other Obligors.............19
            Section 3.3     Assignment of Insurance........................................19
            Section 3.4     Occupancy......................................................19
            Section 3.5     License........................................................20
            Section 3.6     Financing Statement............................................20
            Section 3.7     Setoff.........................................................21

ARTICLE IV - CONDITIONS OF LENDING.........................................................21
            Section 4.1     Conditions Precedent to the Initial Revolving and Term
                            Advances.......................................................21
            Section 4.2     Conditions Precedent to All Advances...........................25

ARTICLE V - Representations and Warranties.................................................26

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            <S>                                                                           <C>
            Section 5.1     Corporate Existence and Power; Name; Chief Executive Office;
                            Inventory and Equipment Locations; Tax Identification No.......26
            Section 5.2     Authorization of Borrowing; No Conflict as to Law
                            or Agreements..................................................26
            Section 5.3     Legal Agreements...............................................27
            Section 5.4     Subsidiaries...................................................27
            Section 5.5     Financial Condition; No Adverse Change.........................27
            Section 5.6     Litigation.....................................................27
            Section 5.7     Regulation U...................................................27
            Section 5.8     Taxes..........................................................27
            Section 5.9     Titles and Liens...............................................28
            Section 5.10    Plans..........................................................28
            Section 5.11    Default........................................................28
            Section 5.12    Environmental Matters..........................................28
            Section 5.13    Submissions to Lender..........................................30
            Section 5.14    Financing Statements...........................................30
            Section 5.15    Rights to Payment..............................................30

ARTICLE VI - BORROWER'S AFFIRMATIVE COVENANTS..............................................30
            Section 6.1     Reporting Requirements.........................................30
            Section 6.2     Books and Records; Inspection and Examination..................33
            Section 6.3     Account Verification...........................................34
            Section 6.4     Compliance with Laws...........................................34
            Section 6.5     Payment of Taxes and Other Claims..............................34
            Section 6.6     Maintenance of Properties......................................35
            Section 6.7     Insurance......................................................35
            Section 6.8     Preservation of Existence......................................35
            Section 6.9     Delivery of Instruments, etc...................................36
            Section 6.10    Lender Account.................................................36
            Section 6.11    Reserved.......................................................36
            Section 6.12    Performance by the Lender......................................36
            Section 6.13    Reserved.......................................................37
            Section 6.14    Minimum Debt Service Coverage Ratio............................37
            Section 6.15    Reserved.......................................................37
            Section 6.16    Reserved.......................................................37
            Section 6.17    Reserved.......................................................37
            Section 6.18    Reserved.......................................................37
            Section 6.19    Maximum Monthly Net Loss.......................................37
            Section 6.20    Minimum Quarterly Net Income...................................38
            Section 6.21    Minimum Annual Net Income......................................38
            Section 6.22    Reserved.......................................................38
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                                       ii
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<S>                                                                                       <C>
ARTICLE VII - NEGATIVE COVENANTS...........................................................38
            Section 7.1     Liens..........................................................38
            Section 7.2     Indebtedness...................................................39
            Section 7.3     Guaranties.....................................................39
            Section 7.4     Investments and Subsidiaries...................................40
            Section 7.5     Dividends......................................................40
            Section 7.6     Sale or Transfer of Assets; Suspension of Business Operations..41
            Section 7.7     Consolidation and Merger; Asset Acquisitions...................41
            Section 7.8     Sale and Leaseback.............................................41
            Section 7.9     Restrictions on Nature of Business.............................41
            Section 7.10    Capital Expenditures...........................................41
            Section 7.11    Accounting.....................................................41
            Section 7.12    Discounts, etc.................................................41
            Section 7.13    Defined Benefit Pension Plans..................................42
            Section 7.14    Other Defaults.................................................42
            Section 7.15    Place of Business; Name........................................42
            Section 7.16    Organizational Documents; S Corporation Status.................42
            Section 7.17    Salaries.......................................................42
            Section 7.18    Change in Ownership............................................42
            Section 7.19    Change in Senior Management....................................43

ARTICLE VII - EVENTS OF DEFAULT, RIGHTS AND REMEDIES.......................................43
            Section 8.1     Events of Default..............................................43
            Section 8.2     Rights and Remedies............................................46
            Section 8.3     Certain Notices................................................47

ARTICLE IX - MISCELLANEOUS.................................................................47
            Section 9.1     No Waiver; Cumulative Remedies.................................47
            Section 9.2     Amendments, Etc................................................47
            Section 9.3     Addresses for Notices, Etc.....................................48
            Section 9.4     Reserved.......................................................48
            Section 9.5     Further Documents..............................................49
            Section 9.6     Collateral.....................................................49
            Section 9.7     Costs and Expenses.............................................49
            Section 9.8     Indemnity......................................................49
            Section 9.9     Participants...................................................50
            Section 9.10    Execution in Counterparts......................................51
            Section 9.11    Binding Effect; Assignment; Complete Agreement; Exchanging
                             Information...................................................51
            Section 9.12    Severability of Provisions.....................................51
            Section 9.13    Headings.......................................................51
            Section 9.14    Governing Law; Jurisdiction, Venue; Waiver of Jury Trial.......51

</TABLE>

                                      iii
<PAGE>

                          CREDIT AND SECURITY AGREEMENT

                            Dated as of May 31, 2000

          OUR FOOD PRODUCTS GROUP, INC., f/k/a Hamlin Food Products Group, Inc.,
a Texas corporation (the "Borrower"),  and WELLS FARGO BUSINESS CREDIT,  INC., a
Minnesota corporation (the "Lender"), hereby agree as follows:

                                    ARTICLE I

                                   DEFINITIONS

          SECTION 1.1 DEFINITIONS. For all purposes of this Agreement, except as
otherwise expressly provided or unless the context otherwise requires:

          (1) the terms  defined in this Article  have the meanings  assigned to
     them in this Article, and include the plural as well as the singular; and

          (2) all  accounting  terms  not  otherwise  defined  herein  have  the
     meanings assigned to them in accordance with GAAP.

          "Accounts"  means  all of the  Borrower's  accounts,  as such  term is
     defined in the UCC,  including  without  limitation  the  aggregate  unpaid
     obligations of customers and other account debtors to the Borrower  arising
     out of the sale or lease of goods or  rendition of services by the Borrower
     on an open account or deferred payment basis.

          "Advance" means a Revolving Advance or a Term Advance.

          "Affiliate"  or  "Affiliates"  means  Morgan Kent Group,  Inc. and any
     other Person  controlled  by,  controlling or under common control with the
     Borrower,  including  (without  limitation) any Subsidiary of the Borrower.
     For purposes of this  definition,  "control," when used with respect to any
     specified Person,  means the power to direct the management and policies of
     such  Person,  directly or  indirectly,  whether  through the  ownership of
     voting securities, by contract or otherwise.

          "Agreement"  means this  Credit and  Security  Agreement,  as amended,
     supplemented or restated from time to time.

          "Assignment of Rents" shall mean that certain  Absolute  Assignment of
     Rents of even date herewith executed by the Borrower, as assignor, in favor
     of the Lender, as assignee.

<PAGE>

          "Banking  Day" means a day other than a Saturday,  Sunday or other day
     on  which  banks  are  generally  not  open for  business  in  Minneapolis,
     Minnesota or San Antonio, Texas.

          "Book Net Worth"  means the  aggregate  of the  common  and  preferred
     stockholders' equity in the Borrower, determined in accordance with GAAP.

          "Borrowing Base" means, at any time the lesser of:

          (a) the Maximum Line; or

          (b)  subject  to  change  from  time  to  time  in the  Lender's  sole
     discretion, the sum of:

               (i) 80% of Eligible Accounts, plus

               (ii) the lesser of (A) 50% of Eligible Inventory or (B) $500,000.

          "Capital Expenditures" for a period means any expenditure of money for
     the lease,  purchase or other  acquisition of any capital asset, or for the
     lease of any other asset whether payable currently or in the future.

          "Collateral"   means  all  of  the   Borrower's   Equipment,   General
     Intangibles,  Inventory,  Receivables,  Investment  Property,  all  sums on
     deposit in any Lender Account, and any items in any Lockbox;  together with
     (i) all  substitutions  and  replacements  for and  products  of any of the
     foregoing; (ii) proceeds of any and all of the foregoing; (iii) in the case
     of all tangible goods, all accessions;  (iv) all accessories,  attachments,
     parts,  equipment  and repairs now or  hereafter  attached or affixed to or
     used in connection  with any tangible  goods;  (v) all warehouse  receipts,
     bills of lading and other documents of title now or hereafter covering such
     goods; and (vi) the Mortgaged Property.

          "Commitment" means the Lender's  commitment to make Advances to or for
     the Borrower's account pursuant to Article II.

          "Copyright  Security Agreement" means the Copyright Security Agreement
     by the Borrower in favor of the Lender of even date herewith.

          "Credit  Facility"  means the credit  facility being made available to
     the Borrower by the Lender pursuant to Article II.

                                       2
<PAGE>

          "Current  Maturities  of Long Term  Debt" as of a given date means the
     amount of the Borrower's long-term debt and capitalized leases which became
     due during the fiscal year- to-date period ending on the designated date.

          "Debt" of any  Person  means all items of  indebtedness  or  liability
     which in  accordance  with GAAP  would be  included  in  determining  total
     liabilities  as shown on the  liabilities  side of a balance  sheet of that
     Person as at the date as of which Debt is to be determined. For purposes of
     determining  a  Person's  aggregate  Debt at any time,  "Debt"  shall  also
     include the  aggregate  payments  required to be made by such Person at any
     time under any lease that is considered a capitalized lease under GAAP.

          "Debt  Service  Coverage  Ratio"  means for any period in question the
     ratio of (i) the sum of (A) Funds from Operations and (B) Interest Expense,
     PLUS  (C)  additional  paid  in  capital,  MINUS  (D)  any  portion  of the
     Borrowers' Capital  Expenditures for such period that were not paid through
     the use of Debt to (ii) the sum of (A) Current Maturities of Long Term Debt
     and (B) Interest Expense.

          "Deed of Trust" means that certain deed of trust,  security  agreement
     and financing statement of even date herewith executed by the Borrower,  as
     grantor,  in favor of the  Lender,  as  beneficiary,  pursuant to which the
     Borrower has granted a deed of trust and security agreement with respect to
     the borrower's  principal business facility and related land located at No.
     1 Chisholm  Trail,  Buda,  Texas,  as the same may hereafter be amended and
     supplemented from time to time.

          "Default"  means an event  that,  with  giving of notice or passage of
     time or both, would constitute an Event of Default.

          "Default  Period" means any period of time  beginning on the first day
     of any month  during  which a Default or Event of Default has  occurred and
     ending on the date the Lender  notifies  the  Borrower in writing that such
     Default or Event of Default has been cured or waived.

          "Default  Rate" means,  with  respect to the  Revolving  Advances,  an
     annual rate equal to three percent (3%) over the Revolving  Floating  Rate,
     which rate shall change when and as the Revolving Floating Rate changes and
     with respect to the Term  Advances,  an annual rate equal to three  percent
     (3%) over the applicable Term Floating Rates, which rates shall change when
     and as the applicable Term Floating Rates change.

          "ERISA" means the Employee  Retirement Income Security Act of 1974, as
     amended.

                                       3

<PAGE>

          "Eligible Accounts" means all unpaid Accounts,  net of any credits and
     slotting  fees,  except  the  following  shall  not in any  event be deemed
     Eligible Accounts:

              (i) That  portion  of  Accounts  unpaid 90 days or more after the
          invoice date;

              (ii) That  portion of  Accounts  that is  disputed or subject to a
          claim of offset or a contra account;

             (iii) That portion of Accounts not yet earned by the final delivery
          of goods or rendition of services,  as applicable,  by the Borrower to
          the customer;

              (iv) Accounts owed by any unit of government,  whether  foreign or
          domestic (provided,  however, that there shall be included in Eligible
          Accounts that portion of Accounts owed by such units of government for
          which the Borrower has provided  evidence  satisfactory  to the Lender
          that (A) the Lender has a first priority  perfected  security interest
          (B) such Accounts may be enforced by the Lender directly  against such
          unit of government under all applicable laws);

               (v) Accounts owed by an account debtor located outside the United
          States which are not (A) backed by a bank letter of credit  naming the
          Lender as  beneficiary  or  assigned to the  Lender,  in the  Lender's
          possession and  acceptable to the Lender in all respects,  in its sole
          discretion,  (B)  covered by a foreign  receivables  insurance  policy
          acceptable to the Lender in its sole discretion;

               (vi) Accounts  owed by an account  debtor that is  insolvent, the
          subject of bankruptcy proceedings or has gone out of business;

              (vii)  Accounts  owed  by  a  shareholder,  Subsidiary, Affiliate,
          officer or employee of the Borrower;

            (viii) Accounts not subject to a duly perfected security interest in
          the Lender's favor or which are subject to any lien, security interest
          or claim  in  favor of any  Person  other  than the  Lender  including
          without limitation any payment or performance bond;

              (ix)  That  portion  of  Accounts  that  has  been   restructured,
          extended, amended or modified;

                                       4
<PAGE>

               (x) That  portion  of  Accounts  that  constitutes  advertising,
          finance charges, service charges or sales or excise taxes;

               (xi)  Accounts owed by an account  debtor,  regardless of whether
          otherwise  eligible,  if 25% or more of the  total  amount  due  under
          Accounts from such debtor is ineligible under clauses (i), (ii)or (ix)
          above;

              (xii) Accounts owing by Haddon House or Gourmet Award Foods to the
          extent owing by either account debtor in excess of $400,000; and

              (xiii) Accounts,  or portions thereof, otherwise deemed ineligible
          by the Lender in its sole discretion.

          "Eligible Inventory" means all Inventory of the Borrower, at the lower
     of cost or market value as determined in  accordance  with GAAP;  provided,
     however,  that the  following  shall not in any  event be  deemed  Eligible
     Inventory:

               (i) Inventory that is: in-transit;  located at any warehouse, job
          site or other premises not approved by the Lender in writing;  located
          outside of the states,  or  localities,  as  applicable,  in which the
          Lender has filed  financing  statements  to  perfect a first  priority
          security  interest in such  Inventory;  covered by any  negotiable  or
          non-negotiable  warehouse receipt, bill of lading or other document of
          title; on consignment from any Person; on consignment to any Person or
          subject to any bailment  unless such  consignee or bailee has executed
          an agreement with the Lender;

               (ii) Supplies, packaging, parts or sample Inventory;

               (iii) Work-in-process Inventory;

               (iv)  Inventory  that is  damaged,  obsolete,  slow moving or not
          currently saleable in the normal course of the Borrower's operations;

               (v) Inventory  that the Borrower has  returned,  has attempted to
          return,  is in the  process of  returning  or intends to return to the
          vendor thereof;

               (vi) Inventory  that is live or any  perishable  inventory with a
          shelf  life of less  than  thirty  (30)  days  or any  finished  goods
          inventory that is over 120 days old;

               (vii)  Inventory  manufactured  by  the  Borrower  pursuant  to a
          license unless the applicable licensor has agreed in writing to permit
          the Lender to exercise its rights and remedies against such Inventory;

                                       5
<PAGE>

               (viii) Inventory that is subject to a security  interest in favor
          of any Person other than the Lender; and

               (ix) Inventory  otherwise deemed  ineligible by the Lender in its
          sole discretion.

          "Environmental Laws" has the meaning specified in Section 5.12.

          "Equipment"  means all of the  Borrower's  equipment,  as such term is
     defined in the UCC, whether now owned or hereafter acquired,  including but
     not  limited to all  present  and future  machinery,  vehicles,  furniture,
     fixtures, manufacturing equipment, shop equipment, office and recordkeeping
     equipment,  parts, tools,  supplies,  and including  specifically  (without
     limitation) the goods described in any equipment  schedule or list herewith
     or hereafter furnished to the Lender by the Borrower.

          "Equipment Floating Rate" means an annual rate equal to the sum of the
     Prime Rate plus one and one-half  percent  (1.5%),  which annual rate shall
     change when and as the Prime Rate changes.

          "Equipment  Term  Advance"  shall have the meaning as required to such
     term in Section 2.2(a) hereof.

          "Equipment Term Note" means the Borrower's promissory note, payable to
     the order of the Lender in substantially the form of Exhibit B-1 hereto and
     any  note or  notes  issued  in  substitution  therefor,  as the  same  may
     hereafter be amended, supplemented or restated from time to time.

          "Event of Default" has the meaning specified in Section 8.1.

          "Funding Date" has the meaning given in Section 2.1.

          "Funds From  Operations"  for a given  period means the sum of (i) Net
     Income,  (ii) depreciation and  amortization,  (iii) deferred income taxes,
     and (iv)  other  non-cash  items,  each as  determined  for such  period in
     accordance with GAAP.

          "GAAP" means generally accepted  accounting  principles,  applied on a
     basis  consistent  with the accounting  practices  applied in the financial
     statements  described in Section 5.5,  except for any change in  accounting
     practices  to the  extent  that,  due to a  promulgation  of the  Financial
     Accounting  Standards  Board  changing or  implementing  any new accounting
     standard,  the Borrower either (i) is required to implement such change, or
     (ii) for future  periods will be required to and for the current period may
     in accordance with generally accepted accounting  principles implement such
     change,  for its financial  statements to be in conformity  with  generally
     accepted accounting  principles (any such change is herein referred to as a
     "Required  GAAP  Change"),  provided  that  (1) the  Borrower  shall  fully
     disclose in such

                                       6
<PAGE>

     financial  statements  any such Required GAAP Change and the effects of the
     Required GAAP Change on the Borrower's  income,  retained earnings or other
     accounts,  as applicable,  and (2) the Borrower's  financial  covenants set
     forth in Sections 6.13, 6.14, 6.15, 6.16, 6.17, 6.18, 6.19, 6.20, 6.21, and
     7.10 shall be adjusted as necessary to reflect the effects of such Required
     GAAP Change.

          "General Intangibles" means all of the Borrower's general intangibles,
     as such  term is  defined  in the  UCC,  whether  now  owned  or  hereafter
     acquired,  including  (without  limitation) all present and future patents,
     patent applications,  copyrights,  trademarks,  trade names, trade secrets,
     customer or supplier lists and contracts,  manuals, operating instructions,
     permits, franchises, the right to use the Borrower's name, and the goodwill
     of the Borrower's business.

          "Hazardous Substance" has the meaning given in Section 5.12.

          "Interest  Expense"  means,  for a  fiscal  year-to-date  period,  the
     Borrower's  total gross  interest  expense  during  such period  (excluding
     interest income), and shall in any event include,  without limitation,  (i)
     interest  expense  (whether or not paid) on all Debt, (ii) the amortization
     of debt discounts, (iii) the amortization of all fees payable in connection
     with the incurrence of Debt to the extent included in interest expense, and
     (iv) the portion of any capitalized lease obligation  allocable to interest
     expense.

          "Inventory"  means all of the  Borrower's  inventory,  as such term is
     defined  in the UCC,  whether  now  owned or  hereafter  acquired,  whether
     consisting  of  whole  goods,  spare  parts  or  components,   supplies  or
     materials, whether acquired, held or furnished for sale, for lease or under
     service contracts or for manufacture or processing, and wherever located.

          "Investment Property" means all of the Borrower's investment property,
     as such  term is  defined  in the  UCC,  whether  now  owned  or  hereafter
     acquired,   including   but  not  limited  to  all   securities,   security
     entitlements, securities accounts, commodity contracts, commodity accounts,
     stocks,  bonds, mutual fund shares, money market shares and U.S. Government
     securities.

          "Keep  Well  Agreement"  means  that  certain  agreement  of even date
     herewith  executed by and among the  Borrower,  Morgan Kent Group,  Inc., a
     Delaware  corporation,  and the Lender pursuant to which Morgan Kent Group,
     Inc. has agreed to fund certain  operating losses of the Borrower,  as same
     may hereafter be amended and supplemented from time to time.

          "Lender  Account" has the meaning given in the Lockbox and  Collection
     Account Agreement.

                                       7
<PAGE>

          "Loan  Documents"  means this  Agreement,  the Notes and the  Security
     Documents,  as the same may  hereafter be amended,  reviewed,  extended and
     supplemented from time to time.

          "Lockbox"  has the  meaning  assigned  to such term in the Lockbox and
     Collection Account Agreement.

          "Lockbox  and  Collection  Account  Agreement"  means the  Lockbox and
     Collection  Account  Agreement  of even  date  herewith  by and  among  the
     Borrower, Regulus West LLC, Wells Fargo Bank, N.A. and the Lender.

          "Maturity Date" means May 31, 2003.

          "Maximum Line" means $2,000,000 unless said amount is reduced pursuant
     to Section  2.8, in which event it means the amount to which said amount is
     reduced.

          "Minimum Interest Charge" has the meaning given in Section 2.4(c).

          "MKGI" shall mean Morgan Kent Group, Inc., a Delaware corporation.

          "Mortgaged Property"  collectively shall mean the "Mortgaged Property"
     as that term is  defined  in the Deed of Trust and the  "Property"  as that
     term is defined in the Assignment of Rents.

          "Net  Income"  means for any  applicable  period,  the  after-tax  net
     income,  DECREASED  by  the  sum  of any  extraordinary,  non-operating  or
     non-cash   income   recorded  by  the   Borrower   and   INCREASED  by  any
     extraordinary,  non-cash or  non-operating  expense or loss recorded by the
     Borrower, as determined in accordance with GAAP.

          "Note"  means the  Revolving  Note or either  of the Term  Notes,  and
     "Notes" means the Revolving Note and the Term Notes.

          "Obligations" means the Notes and each and every other debt, liability
     and obligation of every type and description  which the Borrower may now or
     at any time  hereafter owe to the Lender,  whether such debt,  liability or
     obligation  now  exists or is  hereafter  created or  incurred,  whether it
     arises in a  transaction  involving  the Lender  alone or in a  transaction
     involving  other  creditors  of the  Borrower,  and whether it is direct or
     indirect,  due  or to  become  due,  absolute  or  contingent,  primary  or
     secondary, liquidated or unliquidated, or sole, joint, several or joint and
     several, and including  specifically,  but not limited to, all indebtedness
     of the Borrower  arising under this Agreement,  the Notes or any other loan
     or credit  agreement  or  guaranty  between  the  Borrower  and the Lender,
     whether now in effect or hereafter entered into.

          "Permitted Lien" has the meaning given in Section 7.1.

                                       8
<PAGE>

          "Person"  means  any  individual,   corporation,   partnership,  joint
     venture,  limited  liability  company,  association,  joint-stock  company,
     trust, unincorporated organization or government or any agency or political
     subdivision thereof.

          "Plan" means an employee benefit plan or other plan maintained for the
     Borrower's employees and covered by Title IV of ERISA.

          "Premises" means all premises where the Borrower conducts its business
     and has any  rights  of  possession,  including  (without  limitation)  the
     premises legally described in Exhibit D attached hereto.

          "Prime Rate" means the rate of interest  publicly  announced from time
     to time by Wells Fargo Bank, N.A., San Francisco,  California as its "Prime
     Rate" or, if such bank ceases to announce a rate so designated, any similar
     successor rate designated by the Lender.

          "Real Estate  Floating  Rate" means an annual rate equal to the sum of
     the Prime Rate plus one percent (1.0%), which annual rate shall change when
     and as the Prime Rate changes.

          "Real  Estate Term  Advance"  shall have the meaning  assigned to such
     term in Section 2.2(b) hereof.

          "Real Estate Term Note" means the Borrower's  promissory note, payable
     to the order of the Lender in substantially  the form of Exhibit B-2 hereto
     and any note or notes  issued  in  substitution  therefor,  as the same may
     hereafter be amended, supplemented or restated from time to time.

          "Receivables"  means  each  and  every  right of the  Borrower  to the
     payment of money,  whether  such right to payment  now exists or  hereafter
     arises,  whether such right to payment arises out of a sale, lease or other
     disposition of goods or other property, out of a rendering of services, out
     of a loan,  out of the  overpayment  of  taxes  or  other  liabilities,  or
     otherwise  arises  under any contract or  agreement,  whether such right to
     payment is created,  generated  or earned by the  Borrower or by some other
     person who subsequently  transfers such person's  interest to the Borrower,
     whether such right to payment is or is not already  earned by  performance,
     and  howsoever  such right to payment may be  evidenced,  together with all
     other rights and  interests  (including  all liens and security  interests)
     which the  Borrower  may at any time have by law or  agreement  against any
     account  debtor or other  obligor  obligated  to make any such  payment  or
     against any property of such account debtor or other obligor; all including
     but not limited to all present and future accounts,  contract rights, loans
     and obligations  receivable,  chattel papers,  bonds,  notes and other debt
     instruments,  tax  refunds  and  rights to payment in the nature of general
     intangibles.

          "Reportable  Event"  shall have the  meaning  assigned to that term in
     Title IV of ERISA.

                                       9
<PAGE>

          "Revolving Advance" has the meaning given in Section 2.1.

          "Revolving Floating Rate" means an annual rate equal to the sum of the
     Prime Rate plus one and one-half  percent  (1.5%),  which annual rate shall
     change when and as the Prime Rate changes.

          "Revolving  Note"  means the  Borrower's  revolving  promissory  note,
     payable to the order of the Lender in  substantially  the form of Exhibit A
     hereto and any note or notes issued in substitution  therefor,  as the same
     may hereafter be amended, supplemented or restated from time to time.

          "Security Documents" means this Agreement,  the Lockbox and Collection
     Account  Agreement,  the  Deed of  Trust,  the  Assignment  of  Rents,  the
     Trademark Security Agreement,  the Copyright Security  Agreement,  the Keep
     Well  Agreement,   the  Subordination  Agreement  and  any  other  document
     delivered to the Lender from time to time to secure the Obligations, as the
     same may hereafter be amended, supplemented or restated from time to time.

          "Security Interest" has the meaning given in Section 3.1.

          "Subordination  Agreement" means the  Subordination  Agreement of even
     date herewith,  executed by KBK Financial,  Inc., a Delaware corporation in
     the  Lender's  favor  and  acknowledged  by the  Borrower,  and  any  other
     subordination  agreement  accepted by the Lender from time to time,  as the
     same may hereafter be amended, supplemented or restated from time to time.

          "Subsidiary"  means  any  corporation  of which  more  than 50% of the
     outstanding  shares of capital  stock  having  general  voting  power under
     ordinary  circumstances  to elect a majority of the board of  directors  of
     such  corporation,  irrespective of whether or not at the time stock of any
     other class or classes  shall have or might have voting  power by reason of
     the  happening of any  contingency,  is at the time  directly or indirectly
     owned by the Borrower,  by the Borrower and one or more other Subsidiaries,
     or by one or more other Subsidiaries.

          "Term Advances" has the meaning specified in Section 2.2.

          "Term Floating Rate" means  collectively,  the Equipment Floating Rate
     and the Real Estate Floating Rate.

          "Term Notes" means collectively,  the Equipment Term Note and the Real
     Estate Term Note.

                                       10
<PAGE>

          "Termination  Date" means the earliest of (i) the Maturity Date,  (ii)
     the date the Borrower terminates the Credit Facility, or (iii) the date the
     Lender  demands  payment  of the  Obligations  after an  Event  of  Default
     pursuant to Section 8.2.

          "Trademark  Security Agreement" means the Trademark Security Agreement
     by the Borrower in favor of the Lender of even date herewith.

          "UCC" means the Uniform Commercial Code as in effect from time to time
     in the state  designated  in  Section  9.14 as the state  whose  laws shall
     govern this Agreement,  or in any other state whose laws are held to govern
     this Agreement or any portion hereof.

          SECTION 1.2 CROSS  REFERENCES.  All  references  in this  Agreement to
Articles,  Sections  and  subsections,   shall  be  to  Articles,  Sections  and
subsections of this Agreement unless otherwise explicitly specified.

                                   ARTICLE II

                     AMOUNT AND TERMS OF THE CREDIT FACILITY

          SECTION 2.1 REVOLVING  ADVANCES.  The Lender agrees,  on the terms and
subject to the  conditions  herein set forth,  to make  advances to the Borrower
from time to time from the date all of the  conditions  set forth in Section 4.1
are satisfied  (the "Funding  Date") to the  Termination  Date, on the terms and
subject  to the  conditions  herein set forth (the  "Revolving  Advances").  The
Lender  shall have no  obligation  to make a Revolving  Advance if, after giving
effect to such  requested  Revolving  Advance,  the sum of the  outstanding  and
unpaid  Revolving  Advances  would exceed the  Borrowing  Base.  The  Borrower's
obligation  to pay the  Revolving  Advances  shall be evidenced by the Revolving
Note and shall be secured by the  Collateral as provided in Article III.  Within
the limits set forth in this  Section  2.1,  the  Borrower  may  borrow,  prepay
pursuant to Section 2.8 and  reborrow.  The  Borrower  agrees to comply with the
following procedures in requesting Revolving Advances under this Section 2.1:

          (a) The Borrower  shall make each  request for a Revolving  Advance to
     the Lender before 11:00 a.m. (Minneapolis time) of the day of the requested
     Revolving  Advance.  Requests  may be  made  in  writing  or by  telephone,
     specifying  the date of the  requested  Revolving  Advance  and the  amount
     thereof.  Each  request  shall  be by  (i)  the  chief  financial  officer,
     treasurer or controller of the Borrower;  or (ii) any person  designated as
     the Borrower's agent by any officer of the Borrower in a writing  delivered
     to the Lender; or (iii) any person whom the Lender  reasonably  believes to
     be an officer of the Borrower or such a designated agent.

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<PAGE>

          (b) Upon fulfillment of the applicable conditions set forth in Article
     IV, the Lender  shall  disburse  the  proceeds of the  requested  Revolving
     Advance by crediting  the same to the  Borrower's  demand  deposit  account
     maintained  with Wells  Fargo Bank  Texas,  N.A.  unless the Lender and the
     Borrower shall agree in writing to another manner of disbursement. Upon the
     Lender's  request,  the Borrower  shall  promptly  confirm each  telephonic
     request  for  an  Advance  by  executing  and   delivering  an  appropriate
     confirmation  certificate  to the  Lender.  The  Borrower  shall  repay all
     Advances even if the Lender does not receive such  confirmation and even if
     the person  requesting an Advance was not in fact  authorized to do so. Any
     request for an Advance,  whether written or telephonic,  shall be deemed to
     be a  representation  by the  Borrower  that the  conditions  set  forth in
     Section 4.2 have been satisfied as of the time of the request.

          SECTION 2.2 TERM ADVANCES. The Lender agrees, on the terms and subject
to the conditions  herein set forth, to make the following term loan advances to
the Borrower on the Funding Date (collectively, the "Term Advances");

          (a)  The  Lender  agrees  to  make  an  equipment  loan  term  advance
     ("Equipment  Term Advance") to the Borrower in an amount equal to $110,000.
     The Equipment Term Advance shall first be used to repay all equipment loans
     currently  owing by the  Borrower  to Bank  One and  secondly  for  working
     capital  purposes.  The  Borrower's  obligation to repay the Equipment Term
     Advance shall be evidenced by the Equipment  Term Note and shall be secured
     by the Collateral as provided in Article III.

          (b) The Lender  agrees to make a real estate loan term advance  ("Real
     Estate Term Advance") to the Borrower in an amount equal to $1,223,000. The
     Real Estate Term Advance shall first be used to repay all real estate loans
     currently  owing by the  borrower  to Bank One and  secondly,  for  working
     capital purposes.  The Borrower's  obligation to repay the Real Estate Term
     Advance  shall be  evidenced  by the Real  Estate  Term  Note and  shall be
     secured by the Collateral as provided in Article III.

          SECTION 2.3 PAYMENT OF TERM NOTES. The outstanding  principal  balance
of the Term Notes shall be due and payable as follows:

          (a) With respect to the Equipment Term Note, the outstanding principal
     balance thereof shall be due and payable as follows:

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<PAGE>

                    (i)  Beginning  on July 1, 2000,  and on the 1st day of each
          month thereafter, in substantially equal monthly installments equal to
          the greater of $2,291.67 or an amount sufficient to fully amortize the
          principal  balance of the  Equipment  Term Note over an  assumed  term
          ending on June 1, 2004; and

                    (ii) On the  Termination  Date, the entire unpaid  principal
          balance of the Equipment  Term Note, and all unpaid  interest  accrued
          thereon, shall in any event be due and payable.

     (b) With respect to the Real Estate Term Note,  the  outstanding  principal
balance thereof shall be due and payable as follows:

                    (i)  Beginning  on July 1, 2000,  and on the 1st day of each
          month thereafter, in substantially equal monthly installments equal to
          the greater of $6,794.44 or an amount sufficient to fully amortize the
          principal  balance of the Real Estate  Term Note over an assumed  term
          ending on June 1, 2015;

                    (ii)  Commencing on December 31, 2000 and continuing on each
          one year anniversary of such date, the Borrower shall make a mandatory
          prepayment of principal  evidenced by the Real Estate Term Note in the
          amount of $30,000 and such  prepayment  shall be applied to  principal
          installments  of the Real  Estate  Term Note in the  inverse  order of
          maturity; and

                    (iii) On the Termination  Date, the entire unpaid  principal
          balance of the Real Estate Term Note, and all unpaid interest  accrued
          thereon, shall in any event be due and payable.

          SECTION 2.4  INTEREST;  MINIMUM  INTEREST  CHARGE;  DEFAULT  INTEREST;
PARTICIPATIONS;  USURY.  Interest accruing on the Notes shall be due and payable
in arrears on the first day of each month.

          (a) REVOLVING NOTE. Except as set forth in Sections 2.4(d) and 2.4(g),
     the outstanding principal balance of the Revolving Note shall bear interest
     at the Revolving Floating Rate.

          (b) TERM NOTES. Except as set forth in Sections 2.4(d) and 2.4(g), the
     outstanding  principal  balance of the Term Notes shall  respectively  bear
     interest at the Equipment  Floating Rate and the Real Estate Floating Rate,
     as applicable.

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<PAGE>

          (c) MINIMUM  INTEREST  CHARGE.  Notwithstanding  the interest  payable
     pursuant to Section  2.4(a),  the Borrower shall pay to the Lender interest
     of not less than $12,000 per calendar month (the "Minimum Interest Charge")
     during  the  term  of  this  Agreement,  and  the  Borrower  shall  pay any
     deficiency  between the Minimum  Interest Charge and the amount of interest
     otherwise  calculated  under  Section  2.4(a) on the date and in the manner
     provided in Section 2.6.

          (d) DEFAULT  INTEREST RATE. At any time during any Default Period,  in
     the Lender's sole  discretion  and without  waiving any of its other rights
     and remedies,  the principal of the Advances  outstanding from time to time
     shall  bear  interest  at the  Default  Rate,  effective  for  any  periods
     designated by the Lender from time to time during that Default Period.

          (e) RESERVED.

          (f) RESERVED.

          (g) USURY.  In any event no rate change shall be put into effect which
     would  result in a rate  greater  than the highest  rate  permitted by law.
     Notwithstanding  anything to the contrary  contained in any Loan  Document,
     all  agreements  which  either  now are or which  shall  become  agreements
     between  the  Borrower  and the  Lender  are  hereby  limited so that in no
     contingency or event  whatsoever  shall the total liability for payments in
     the nature of interest,  additional  interest and other charges  exceed the
     applicable  limits imposed by any applicable usury laws. Any  determination
     of the  rate(s) of  interest  for  determining  whether the loans under the
     Notes  and the  Obligations  are  usurious  shall  be  made by  amortizing,
     prorating,  allocating and spreading, during the term of loans if no demand
     is made, all interest at any time contracted for,  charged or received from
     the Borrower in connection with such loans and Obligations,  and any excess
     shall be canceled or  credited  or  refunded  as set forth  herein.  If any
     payments in the nature of interest,  additional  interest and other charges
     made under any Loan Document are held to be in excess of the limits imposed
     by any applicable  usury laws, it is agreed that any such amount held to be
     in excess shall be automatically  considered payment of principal hereunder
     or the  applicable  Loan Document (or if any such  indebtedness  shall have
     been  paid  in  full,  refunded  to the  Borrower),  and  the  indebtedness
     evidenced  thereby  shall be  reduced  by such  amount  so that  the  total
     liability for payments in the nature of interest,  additional  interest and
     other  charges  shall not  exceed  the  applicable  limits  imposed  by any
     applicable  usury laws, in compliance  with the desires of the Borrower and
     the Lender.  This  provision  shall never be superseded or waived and shall

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<PAGE>

     control  every other  provision of the Loan  Documents  and all  agreements
     between the Borrower and the Lender, or their successors and assigns.

          SECTION 2.5 FEES.

          (a)  ORIGINATION  FEE. The Borrower  hereby agrees to pay the Lender a
     fully earned and non-refundable origination fee of $15,000, due and payable
     upon the execution of this Agreement.  The Lender  acknowledges  receipt of
     $25,000  toward  payment  of this  fee and the  fees,  costs  and  expenses
     described in Sections 2.5(c) and 9.7.

          (b) UNUSED LINE FEE. For the purposes of this Section 2.5(b),  "Unused
     Amount" means the Maximum Line reduced by outstanding  Revolving Advances .
     The Borrower  agrees to pay to the Lender an unused line fee at the rate of
     one-half of one  percent  (0.50%)  per annum on the  average  daily  Unused
     Amount from the date of this  Agreement to and  including  the  Termination
     Date, due and payable  monthly in arrears on the first day of the month and
     on the Termination Date.

          (c) AUDIT FEES.  The  Borrower  hereby  agrees to pay the  Lender,  on
     demand,  audit fees in connection with any audits or inspections  conducted
     by the Lender of any Collateral or the Borrower's operations or business at
     the rates  established  from time to time by the  Lender as its audit  fees
     (which fees are  currently  $700 per day per  auditor),  together  with all
     actual  out-of-pocket  costs and expenses  incurred in conducting  any such
     audit or inspection.

          SECTION 2.6  COMPUTATION  OF INTEREST AND FEES;  WHEN INTEREST DUE AND
PAYABLE.  Interest accruing on the outstanding principal balance of the Advances
and fees hereunder  outstanding from time to time shall be computed on the basis
of  actual  number of days  elapsed  in a year of 360  days.  Interest  shall be
payable in arrears on the first day of each month and on the Termination Date.

          SECTION 2.7 CAPITAL ADEQUACY.  If any Related Lender determines at any
time that its  Return  has been  reduced  as a result of any Rule  Change,  such
Related  Lender may  require  the  Borrower  to pay it the amount  necessary  to
restore its Return to what it would have been had there been no Rule Change. For
purposes of this Section 2.7:

          (a)  "Capital   Adequacy  Rule"  means  any  law,  rule,   regulation,
     guideline, directive, requirement or request regarding capital adequacy, or
     the  interpretation  or  administration  thereof  by  any  governmental  or
     regulatory authority, central bank or comparable agency, whether or not

                                       15
<PAGE>

     having the force of law,  that  applies to any Related  Lender.  Such rules
     include rules requiring financial institutions to maintain total capital in
     amounts  based  upon  percentages  of  outstanding   loans,   binding  loan
     commitments and letters of credit.

          (b) "Return",  for any period,  means the return as determined by such
     Related  Lender on the Advances  based upon its total capital  requirements
     and a  reasonable  attribution  formula  that takes  account of the Capital
     Adequacy  Rules then in effect.  Return may be calculated for each calendar
     quarter and for the shorter  period  between the end of a calendar  quarter
     and the date of termination in whole of this Agreement.

          (c) "Rule  Change"  means  any  change in any  Capital  Adequacy  Rule
     occurring after the date of this  Agreement,  but the term does not include
     any  changes  in  applicable  requirements  that at the  Closing  Date  are
     scheduled to take place under the existing  Capital  Adequacy  Rules or any
     increases in the capital that any Related Lender is required to maintain to
     the extent that the increases are required due to a regulatory  authority's
     assessment of the financial condition of such Related Lender.

          (d) "Related Lender" includes (but is not limited to) the Lender,  any
     parent  corporation  of the Lender and any  assignee of any interest of the
     Lender hereunder and any participant in the loans made hereunder.

Certificates  of any  Related  Lender  sent to the  Borrower  from  time to time
claiming  compensation  under this Section 2.7,  stating the reason therefor and
setting forth in reasonable  detail the calculation of the additional  amount or
amounts to be paid to the Related  Lender  hereunder to restore its Return shall
be conclusive  absent manifest error. In determining  such amounts,  the Related
Lender may use any reasonable averaging and attribution methods.

          SECTION 2.8  VOLUNTARY  PREPAYMENT;  REDUCTION  OF THE MAXIMUM  LINE;
TERMINATION OF THE CREDIT FACILITY BY THE BORROWER. Except as otherwise provided
herein,  the Borrower may prepay the Revolving  Advances in whole at any time or
from time to time in part. The Borrower may prepay the Term Advances (other than
in  accordance  with Section 2.3),  terminate the Credit  Facility or reduce the
Maximum  Line at any time if it (i)  gives the  Lender  at least 30 days'  prior
written  notice  and (ii) pays the Lender the  prepayment,  termination  or line
reduction  fees in  accordance  with  Section 2.9.  Any  prepayment  of the Term
Advances (other than in accordance with Section 2.3) or reduction in the Maximum
Line  must be in an  amount  not less  than  $500,000  or an  integral  multiple

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<PAGE>

thereof. If the Borrower reduces the Maximum Line to zero, all Obligations shall
be immediately due and payable.  Any partial prepayments of the Term Note (other
than in accordance with Section 2.3) shall be applied to principal  payments due
and owing in inverse order of their  maturities.  Upon termination of the Credit
Facility  and payment  and  performance  of all  Obligations,  the Lender  shall
release or terminate the Security  Interest and the Security  Documents to which
the Borrower is entitled by law.

          SECTION 2.9  TERMINATION,  LINE REDUCTION AND PREPAYMENT FEES; WAIVER
OF TERMINATION, PREPAYMENT AND LINE REDUCTION FEES.

          (a)  TERMINATION  AND LINE REDUCTION  FEES. If the Credit  Facility is
     terminated for any reason as of a date other than the Maturity Date, or the
     Borrower  reduces the Maximum Line,  the Borrower shall pay to the Lender a
     fee in an  amount  equal  to a  percentage  of the  Maximum  Line  (or  the
     reduction,  as the case may be) as follows: (i) three percent (3.0%) if the
     termination or reduction  occurs on or before the first  anniversary of the
     Funding  Date;  (ii) two percent  (2.0%) if the  termination  or  reduction
     occurs after the first anniversary of the Funding Date but on or before the
     second anniversary of the Funding Date; and (iii) one percent (1.0%) if the
     termination or reduction occurs after the second anniversary of the Funding
     Date.

          (b)  PREPAYMENT  FEES.  If either  Term Note is prepaid for any reason
     except in accordance with Section 2.3, the Borrower shall pay to the Lender
     a fee in an amount equal to a percentage of the amount  prepaid as follows:
     (i) three  percent  (3.0%)  if  prepayment  occurs  on or before  the first
     anniversary  of the Funding  Date;  (ii) two percent  (2.0%) if  prepayment
     occurs after the first anniversary of the Funding Date but on or before the
     second  anniversary  of the Funding Date;  and (iii) one percent  (1.0%) if
     prepayment occurs after the second anniversary of the Funding Date.

          (c) WAIVER OF  TERMINATION,  LINE REDUCTION AND  PREPAYMENT  FEES. The
     Borrower will not be required to pay the  termination,  line  reduction and
     prepayment  fees otherwise due under this Section 2.9 if such  termination,
     line  reduction  or  prepayment  is made  because  of  increased  cash flow
     generated from the Borrower's operations in the ordinary course of business
     or refinancing by an affiliate of the Lender.

          SECTION 2.10 MANDATORY  PREPAYMENT.  Without notice or demand,  if the
outstanding principal balance of the Revolving Advances shall at any time exceed
the Borrowing Base, the Borrower shall immediately prepay the Revolving Advances
to the extent  necessary to eliminate such excess.  Any payment  received by the

                                       17
<PAGE>

Lender  under  this  Section  2.10 or under  Section  2.8 may be  applied to the
Obligations, in such order and in such amounts as the Lender, in its discretion,
may from time to time determine;  provided that any prepayment under Section 2.8
which the Borrower  designates as a partial prepayment of the Term Note shall be
applied to principal installments of the Term Note in inverse order of maturity.

          SECTION  2.11  PAYMENT.  All  payments to the Lender  shall be made in
immediately  available  funds and shall be  applied  to the  Obligations  by the
Lender on the next  Banking  Day.  All  payments  not  constituting  immediately
available  funds  shall be  forwarded  by the  Lender  to  Regulus  West LLC for
collection and processing in accordance with the Lockbox and Collection  Account
Agreement.   Notwithstanding  anything  in  Section  2.1,  the  Borrower  hereby
authorizes  the  Lender,  in its  discretion  at any  time or from  time to time
without the  Borrower's  request and even if the conditions set forth in Section
4.2 would not be  satisfied,  to make a Revolving  Advance in an amount equal to
the portion of the Obligations from time to time due and payable.

          SECTION 2.12 PAYMENT ON NON-BANKING  DAYS.  Whenever any payment to be
made  hereunder  shall be stated to be due on a day which is not a Banking  Day,
such payment may be made on the next succeeding  Banking Day, and such extension
of time shall in such case be  included  in the  computation  of interest on the
Advances or the fees hereunder, as the case may be.

          SECTION 2.13 USE OF PROCEEDS.  The Borrower  shall use the proceeds of
Advances first to repay in full all amounts owing to Bank One and secondly,  for
ordinary working capital purposes.

          SECTION 2.14 LIABILITY  RECORDS.  The Lender may maintain from time to
time, at its discretion,  liability  records as to the Obligations.  All entries
made on any such record shall be presumed correct until the Borrower establishes
the contrary.  Upon the Lender's demand,  the Borrower will admit and certify in
writing the exact principal  balance of the  Obligations  that the Borrower then
asserts to be outstanding.  Any billing statement or accounting  rendered by the
Lender shall be conclusive and fully binding on the Borrower unless the Borrower
gives the  Lender  specific  written  notice of  exception  within 30 days after
receipt.

                                   ARTICLE III

                      SECURITY INTEREST; OCCUPANCY; SETOFF

          SECTION 3.1  GRANT OF SECURITY INTEREST.  The Borrower hereby pledges,
assigns and grants to the Lender a security

                                       18

<PAGE>

interest   (collectively   referred  to  as  the  "Security  Interest")  in  the
Collateral, as security for the payment and performance of the Obligations.

          SECTION 3.2   NOTIFICATION OF ACCOUNT DEBTORS AND OTHER OBLIGORS.  The
Lender may at any time (if a Default  Period  then  exists)  notify any  account
debtor or other  person  obligated  to pay the  amount  due that  such  right to
payment has been assigned or transferred to the Lender for security and shall be
paid directly to the Lender. The Borrower will join in giving such notice if the
Lender so  requests.  At any time after the  Borrower  or the Lender  gives such
notice to an account debtor or other  obligor,  the Lender may, but need not, in
the Lender's name or in the  Borrower's  name, (a) demand,  sue for,  collect or
receive any money or property at any time payable or  receivable  on account of,
or  securing,  any such right to payment,  or grant any  extension  to, make any
compromise  or settlement  with or otherwise  agree to waive,  modify,  amend or
change the obligations  (including  collateral  obligations) of any such account
debtor or other obligor;  and (b) as the Borrower's agent and  attorney-in-fact,
notify the United  States  Postal  Service to change the address for delivery of
the Borrower's mail to any address designated by the Lender, otherwise intercept
the  Borrower's  mail,  and receive,  open and dispose of the  Borrower's  mail,
applying all Collateral as permitted  under this Agreement and holding all other
mail for the Borrower's  account or forwarding  such mail to the Borrower's last
known address.

          SECTION 3.3  ASSIGNMENT OF INSURANCE.  As additional  security for the
payment and performance of the  Obligations,  the Borrower hereby assigns to the
Lender any and all monies (including, without limitation,  proceeds of insurance
and  refunds of  unearned  premiums)  due or to become due under,  and all other
rights of the Borrower with respect to, any and all policies of insurance now or
at any time  hereafter  covering the  Collateral or any evidence  thereof or any
business records or valuable papers pertaining thereto,  and the Borrower hereby
directs  the issuer of any such  policy to pay all such  monies  directly to the
Lender. At any time, whether or not a Default Period then exists, the Lender may
(but need not),  in the Lender's  name or in the  Borrower's  name,  execute and
deliver  proof of claim,  receive  all such  monies,  endorse  checks  and other
instruments   representing  payment  of  such  monies,  and  adjust,   litigate,
compromise or release any claim against the issuer of any such policy.

          SECTION 3.4 OCCUPANCY.

          (a) Without in any way limiting, modifying or waiving any other rights
     or remedies  provided to the Lender in this  Agreement or under the Deed of
     Trust  and/or  any other Loan

                                       19

<PAGE>

     Documents with respect to any  Collateral,  Borrower  hereby agrees as
     follows:

                    (i) The Borrower hereby irrevocably grants to the Lender the
          right to take  possession of the Premises at any time during a Default
          Period.

                    (ii) The Lender may at any time during a Default  Period use
          the  Premises  to  hold,  process,  manufacture,   sell,  use,  store,
          liquidate,  realize  upon or  otherwise  dispose  of  goods  that  are
          Collateral  and for other  purposes  that the Lender may in good faith
          deem to be related or incidental purposes.

                    (iii) The Lender's right to hold the Premises (excluding any
          Premises  constituting  Collateral) shall cease and terminate upon the
          earlier of (i) payment in full and  discharge of all  Obligations  and
          termination of the  Commitment,  and (ii) final sale or disposition of
          all goods  constituting  Collateral  and delivery of all such goods to
          purchasers.

                    (iv) The Lender shall not be obligated to pay or account for
          any rent or other compensation for the possession, occupancy or use of
          any of the Premises; provided, however, that if the Lender does pay or
          account  for  any  rent or  other  compensation  for  the  possession,
          occupancy or use of any of the Premises,  the Borrower shall reimburse
          the Lender  promptly for the full amount  thereof.  In  addition,  the
          Borrower  will pay,  or  reimburse  the Lender for,  all taxes,  fees,
          duties,  imposts,  charges  and  expenses  at any time  incurred by or
          imposed  upon  the  Lender  by  reason  of  the  execution,  delivery,
          existence,  recordation,  performance or enforcement of this Agreement
          or the provisions of this Section 3.4.

          SECTION 3.5  LICENSE. Without limiting the generality of the Copyright
Security  Agreement or the Trademark  Security  Agreement,  the Borrower  hereby
grants to the Lender a non-exclusive,  worldwide and royalty-free license to use
or otherwise  exploit all trademarks,  franchises,  trade names,  copyrights and
patents of the  Borrower  for the  purpose  of  selling,  leasing  or  otherwise
disposing of any or all Collateral during any Default Period.

          SECTION 3.6   FINANCING  STATEMENT.  A carbon,  photographic  or other
reproduction  of this  Agreement or of any  financing  statements  signed by the
Borrower is sufficient as a financing  statement and may be filed as a financing
statement in

                                       20
<PAGE>

any state to perfect the security  interests  granted hereby.  For this purpose,
the following information is set forth:

                  Name and address of Debtor:

                  Our Food Products Group, Inc.
                  #1 Chisholm Trail
                  Buda, Texas 78610
                  Federal Tax Identification No. 74-2877323

                  Name and address of Secured Party:

                  Wells Fargo Business Credit, Inc.
                  Norwest Center N9312-040
                  Sixth Street and Marquette Avenue
                  Minneapolis, Minnesota 55479
                  Federal Tax Identification No. 41-1237652

          SECTION  3.7  SETOFF.  The Borrower  agrees that the Lender may at any
time or from time to time, at its sole discretion and without demand and without
notice to anyone,  setoff any  liability  owed to the  Borrower  by the  Lender,
whether or not due,  against any  Obligation,  whether or not due. In  addition,
each other Person holding a participating interest in any Obligations shall have
the right to appropriate  or setoff any deposit or other  liability then owed by
such  Person  to the  Borrower,  whether  or not due,  and apply the same to the
payment  of said  participating  interest,  as fully as if such  Person had lent
directly to the Borrower the amount of such participating interest.

                                   ARTICLE IV

                              CONDITIONS OF LENDING

          SECTION 4.1  CONDITIONS  PRECEDENT TO THE INITIAL  REVOLVING AND TERM
ADVANCES.  The  Lender's  obligation  to make  the  initial  Revolving  and Term
Advances  hereunder shall be subject to the condition  precedent that the Lender
shall  have  received  all  of  the  following,   each  in  form  and  substance
satisfactory to the Lender:

          (a) This Agreement, properly executed by the Borrower.

          (b) The Notes,  Deed of Trust and  Assignment of Rents,  each properly
     executed by the Borrower.

          (c) A true and correct copy of all leases,  if any,  pursuant to which
     the Borrower is leasing the Premises,

                                       21
<PAGE>

     together with a landlord's disclaimer and consent with respect to each such
     lease.

          (d) A true and correct  copy of any and all  mortgages/deeds  of trust
     and  assignment of rents  pursuant to which the Borrower has encumbered the
     Premises, together with, if requested, a mortgagee's disclaimer and consent
     with respect to each such encumbrance.

          (e) A true and  correct  copy of any and all  agreements  pursuant  to
     which the Borrower's property is in the possession of any Person other than
     the Borrower,  together  with, in the case of any goods held by such Person
     for resale, (i) a consignee's  acknowledgment and waiver of liens, (ii) UCC
     financing statements  sufficient to protect the Borrower's and the Lender's
     interests  in such  goods,  and (iii) UCC  searches  showing  that no other
     secured  party has filed a  financing  statement  against  such  Person and
     covering property similar to the Borrower's other than the Borrower,  or if
     there exists any such secured party,  evidence that each such secured party
     has received notice from the Borrower and the Lender  sufficient to protect
     the Borrower's and the Lender's  interests in the Borrower's goods from any
     claim by such secured party.

          (f) An acknowledgment and waiver of liens from each warehouse in which
     the Borrower is storing Inventory.

          (g) A true and  correct  copy of any and all  agreements  pursuant  to
     which the Borrower's property is in the possession of any Person other than
     the Borrower, together with, (i) an acknowledgment and waiver of liens from
     each  subcontractor who has possession of the Borrower's goods from time to
     time,  (ii) UCC financing  statements  sufficient to protect the Borrower's
     and the Lender's  interests in such goods,  and (iii) UCC searches  showing
     that no other secured party has filed a financing  statement  covering such
     Person's  property  other than the  Borrower,  or if there  exists any such
     secured  party,  evidence that each such secured party has received  notice
     from the Borrower and the Lender  sufficient to protect the  Borrower's and
     the  Lender's  interests  in the  Borrower's  goods  from any claim by such
     secured party.

          (h) The Lockbox and Collection Account Agreement, properly executed by
     the Borrower, Regulus West, LLC and Wells Fargo Bank, N.A.

          (i)  The  Trademark  Security  Agreement,  properly  executed  by  the
     Borrower.

                                       22
<PAGE>

          (j)  The  Copyright  Security  Agreement,  properly  executed  by the
     Borrower.

          (k) The Subordination Agreement,  properly executed by KBK Financial,
     Inc. and acknowledged by the Borrower.

          (l) The Keep Well  Agreement,  properly  executed by the Borrower and
     MKGI

          (m) Current  searches of appropriate  filing offices showing that (i)
     no state or federal tax liens have been filed and remain in effect  against
     the  Borrower,  (ii) no financing  statements  or  assignments  of patents,
     trademarks or copyrights  have been filed and remain in effect  against the
     Borrower  except those  financing  statements  and  assignments of patents,
     trademarks  or copyrights  relating to Permitted  Liens or to liens held by
     Persons  who have  agreed in writing  that upon  receipt of proceeds of the
     Advances,  they will deliver UCC releases and/or  terminations and releases
     of such  assignments of patents,  trademarks or copyrights  satisfactory to
     the Lender,  and (iii) the Lender has duly filed all  financing  statements
     necessary  to perfect the  Security  Interest,  to the extent the  Security
     Interest is capable of being perfected by filing.

          (n) A certificate of the Borrower's  Secretary or Assistant Secretary
     certifying as to (i) the  resolutions of the  Borrower's  directors and, if
     required, shareholders, authorizing the execution, delivery and performance
     of the Loan Documents,  (ii) the Borrower's  articles of incorporation  and
     bylaws,  and (iii) the  signatures  of the  Borrower's  officers  or agents
     authorized to execute and deliver the Loan Documents and other instruments,
     agreements and certificates,  including Advance requests, on the Borrower's
     behalf.

          (o) A current  certificate issued by the Secretary of State of Texas,
     certifying   that  the  Borrower  is  in  compliance  with  all  applicable
     organizational requirements of the State of Texas.

          (p)  Evidence  that the  Borrower is duly  licensed or  qualified  to
     transact business in all jurisdictions  where the character of the property
     owned or leased or the nature of the business  transacted  by it makes such
     licensing or qualification necessary.

          (q) A certificate  of an officer of the Borrower  confirming,  in his
     personal capacity,  the representations and warranties set forth in Article
     V.

                                       23
<PAGE>

          (r) An opinion of counsel to the Borrower and MKGI,  addressed to the
     Lender.

          (s) Certificates of the insurance required hereunder, with all hazard
     insurance  containing a mortgagee and lender's loss payable  endorsement in
     the Lender's favor and with all liability insurance naming the Lender as an
     additional insured.

          (t) Payment of the fees and  commissions  due through the date of the
     initial  Advance  under  Section  2.5 and  expenses  incurred by the Lender
     through  such date and required to be paid by the  Borrower  under  Section
     9.7,  including  all  legal  expenses  incurred  through  the  date of this
     Agreement.

          (u) A fully paid loan  policy of title  insurance  issued in favor of
     the  Lender by a title  company  acceptable  to the Lender in an amount not
     less than one  hundred  and  twenty-five  percent  (125%) of the  principal
     amount of the Real Estate Term Note  insuring  the Deed of Trust as a first
     lien on a good and marketable  fee simple title to the Mortgaged  Property,
     subject only to  "Permitted  Encumbrances"  (as that term is defined in the
     Deed of Trust) and,  without  limiting  the  generality  of the  foregoing,
     insuring the Deed of Trust against claims for mechanic's  liens,  rights of
     parties in possession and other matters,  and containing such endorsements,
     as the Lender may request.

          (v) Written evidence of payment of (i) all real estate taxes relating
     to the Mortgaged  Property  presently due and payable,  and (ii) all levied
     and pending  assessments  related to such  Mortgaged  Property (or, in lieu
     thereof, payment in escrow of an amount determined by the Lender).

          (w) A land survey of the  Mortgaged  Property,  in form and substance
     acceptable to the Lender,  prepared at the  Borrower's  expense,  currently
     certified to the Lender by a licensed registered surveyor acceptable to the
     Lender,   and  prepared  in  accordance   with  "Minimum   Standard  Detail
     Requirements  for ALTA/ACSM Land Title  Surveys"  jointly  established  and
     adopted by the ALTA/ACSM in 1997,  meeting the accuracy  requirements of an
     Urban Survey,  as defined  therein and  containing  such items from Table A
     thereof as may be  requested by the Lender,  including,  but not limited to
     (a)  incorporating  the legal  description of the Mortgaged  Property,  (b)
     showing the location of all improvements  thereon, (c) showing the location
     of all easements and encroachments  onto or from the Mortgaged Property and
     (d) showing all service roads, highways and parking areas on or serving the
     Mortgaged Property.

                                       24

<PAGE>

          (x)  A  uniform  land  use  confirmation  form  from  the  applicable
     governing  authorities with respect to the Mortgaged Property  reflecting a
     current zoning status for the Mortgaged  Property and containing such other
     matters and confirmations as may be requested by the Lender,  together with
     a  Certificate  of  Occupancy  duly  issued with  respect to the  Mortgaged
     Property.

          (y) Evidence  satisfactory to the Lender that the Mortgaged  Property
     and the current and  contemplated  uses thereof are permitted by and comply
     in all material respects with all applicable  restrictions and requirements
     and  prior  conveyances,   zoning  ordinances,   subdivision  and  platting
     requirements  and other laws and regulations and have been duly approved by
     the municipal or other  governmental  authorities  having  jurisdiction and
     that the  required  building,  zoning,  environmental  and  other  permits,
     approvals and licenses have been duly obtained as required by law.

          (z)  Evidence  acceptable  to the Lender that no  hazardous  waste or
     substances are contained on, under or in the Mortgaged Property, including,
     without  limitation,  the delivery of an acceptable  Phase I  Environmental
     Assessment with respect to the Mortgaged Property.

          (aa) An appraisal prepared by an MAI designated  appraiser  acceptable
     to the  Lender  setting  forth  the  estimated  fair  market  value  of the
     Mortgaged Property, together with such documentation as may be necessary to
     permit the Lender to rely  thereon,  all in form and content  acceptable to
     the Lender.

          (ab) Such other  documents  as the Lender in its sole  discretion  may
     require.

          SECTION  4.2   CONDITIONS  PRECEDENT  TO ALL  ADVANCES.  The  Lender's
obligation  to make each  Advance  shall be  subject to the  further  conditions
precedent that on such date:

          (a) the  representations  and  warranties  contained  in Article V are
     correct on and as of the date of such  Advance as though  made on and as of
     such date,  except to the extent that such  representations  and warranties
     relate solely to an earlier date; and

          (b) no event has occurred and is continuing, or would result from such
     Advance which constitutes a Default or an Event of Default.

                                       25
<PAGE>

                                   ARTICLE V

                         REPRESENTATIONS AND WARRANTIES

          The Borrower represents and warrants to the Lender as follows:

          SECTION 5.1  CORPORATE  EXISTENCE AND POWER;  NAME;  CHIEF  EXECUTIVE
OFFICE;  INVENTORY AND  EQUIPMENT  LOCATIONS;  TAX  IDENTIFICATION  NUMBER.  The
Borrower is a corporation, duly organized, validly existing and in good standing
under  the laws of the  State of Texas  and is duly  licensed  or  qualified  to
transact business in all jurisdictions where the character of the property owned
or leased or the nature of the business transacted by it makes such licensing or
qualification  necessary.  The Borrower has all requisite  power and  authority,
corporate or otherwise,  to conduct its business,  to own its  properties and to
execute and  deliver,  and to perform  all of its  obligations  under,  the Loan
Documents. During its existence, the Borrower has done business solely under the
names set forth in Schedule 5.1 hereto.  The Borrower's  chief executive  office
and principal  place of business is located at the address set forth in Schedule
5.1 hereto,  and all of the Borrower's  records  relating to its business or the
Collateral are kept at that location.  All Inventory and Equipment is located at
that location or at one of the other locations set forth in Schedule 5.1 hereto.
The Borrower's tax  identification  number is correctly set forth in Section 3.6
hereto.

          SECTION  5.2  AUTHORIZATION  OF  BORROWING;  NO CONFLICT AS TO LAW OR
AGREEMENTS. The execution,  delivery and performance by the Borrower of the Loan
Documents  and the  borrowings  from  time  to time  hereunder  have  been  duly
authorized by all necessary corporate action and do not and will not (i) require
any  consent or  approval  of the  Borrower's  stockholders;  (ii)  require  any
authorization,  consent or approval by, or  registration,  declaration or filing
with, or notice to, any  governmental  department,  commission,  board,  bureau,
agency or instrumentality,  domestic or foreign, or any third party, except such
authorization, consent, approval, registration, declaration, filing or notice as
has been obtained, accomplished or given prior to the date hereof; (iii) violate
any  provision of any law, rule or regulation  (including,  without  limitation,
Regulation X of the Board of Governors of the Federal  Reserve System) or of any
order,  writ,  injunction or decree presently in effect having  applicability to
the Borrower or of the  Borrower's  articles of  incorporation  or bylaws;  (iv)
result in a breach of or  constitute  a default  under any  indenture or loan or
credit agreement or any other material  agreement,  lease or instrument to which
the  Borrower  is a party  or by  which  it or its  properties  may be  bound or
affected;  or (v) result in, or  require,  the  creation  or  imposition  of any
mortgage,  deed of trust,  pledge,  lien,  security  interest or other charge or
encumbrance  of any

                                       26
<PAGE>

nature  (other than the  Security  Interest)  upon or with respect to any of the
properties now owned or hereafter acquired by the Borrower.

          SECTION 5.3  LEGAL  AGREEMENTS.  This Agreement  constitutes and, upon
due execution by the Borrower,  the other Loan  Documents  will  constitute  the
legal, valid and binding  obligations of the Borrower,  enforceable  against the
Borrower in accordance with their respective terms.

          SECTION 5.4  SUBSIDIARIES. Except as set forth in Schedule 5.4 hereto,
the Borrower has no Subsidiaries.

          SECTION 5.5  FINANCIAL CONDITION;  NO ADVERSE CHANGE. The Borrower has
heretofore  furnished to the Lender its preliminary audited financial statements
for its  fiscal  year  ended  December  31,  1999  and its  unaudited  financial
statements  for the fiscal  year-to-date  period  ended April 30, 2000 and those
statements  fairly  present  the  Borrower's  financial  condition  on the dates
thereof and the results of its  operations  and cash flows for the periods  then
ended  and were  prepared  in  accordance  with  generally  accepted  accounting
principles.  Since the date of the most recent financial  statements,  there has
been no  material  adverse  change in the  Borrower's  business,  properties  or
condition (financial or otherwise).

          SECTION 5.6  LITIGATION. Except as otherwise disclosed in SCHEDULE 5.6
hereof, there are no actions, suits or proceedings pending or, to the Borrower's
knowledge, threatened against or affecting the Borrower or any of its Affiliates
or the properties of the Borrower or any of its  Affiliates  before any court or
governmental department,  commission,  board, bureau, agency or instrumentality,
domestic or foreign,  which,  if determined  adversely to the Borrower or any of
its Affiliates, would have a material adverse effect on the financial condition,
properties or operations of the Borrower or any of its Affiliates.

          SECTION 5.7  REGULATION U. The Borrower is not engaged in the business
of  extending  credit for the purpose of  purchasing  or carrying  margin  stock
(within the meaning of  Regulation  U of the Board of  Governors  of the Federal
Reserve  System),  and no part of the  proceeds of any  Advance  will be used to
purchase or carry any margin stock or to extend credit to others for the purpose
of purchasing or carrying any margin stock.

          SECTION  5.8  TAXES.  The  Borrower  and its  Affiliates  have paid or
caused to be paid to the  proper  authorities  when due all  federal,  state and
local  taxes  required  to be withheld  by each of them.  The  Borrower  and its
Affiliates  have filed all  federal,  state and local tax  returns  which to the
knowledge of the officers

                                       27
<PAGE>

of the Borrower or any Affiliate,  as the case may be, are required to be filed,
and the  Borrower  and its  Affiliates  have  paid or  caused  to be paid to the
respective  taxing  authorities  all  taxes as shown on said  returns  or on any
assessment received by any of them to the extent such taxes have become due.

          SECTION  5.9  TITLES AND LIENS.  The  Borrower  has good and  absolute
title to all  Collateral  described in the  collateral  reports  provided to the
Lender and all other  Collateral,  properties and assets reflected in the latest
financial  statements referred to in Section 5.5 and all proceeds thereof,  free
and clear of all mortgages,  security interests, liens and encumbrances,  except
for Permitted Liens. No financing  statement naming the Borrower as debtor is on
file in any office except to perfect only Permitted Liens.

          SECTION 5.10 PLANS. Except as disclosed to the Lender in writing prior
to the date hereof,  neither the Borrower nor any of its Affiliates maintains or
has maintained any Plan. Neither the Borrower nor any Affiliate has received any
notice or has any knowledge to the effect that it is not in full compliance with
any of the  requirements  of  ERISA.  No  Reportable  Event  or  other  fact  or
circumstance which may have an adverse effect on the Plan's tax qualified status
exists  in  connection  with  any  Plan.  Neither  the  Borrower  nor any of its
Affiliates has:

          (a) Any accumulated funding deficiency within the meaning of ERISA; or

          (b) Any  liability or knows of any fact or  circumstances  which could
     result in any liability to the Pension Benefit  Guaranty  Corporation,  the
     Internal  Revenue  Service,  the Department of Labor or any  participant in
     connection  with any Plan (other than accrued  benefits  which or which may
     become payable to participants or beneficiaries of any such Plan).

          SECTION  5.11  DEFAULT.   The  Borrower  is  in  compliance  with  all
provisions of all agreements,  instruments,  decrees and orders to which it is a
party or by which it or its property is bound or affected, the breach or default
of which  could  have a  material  adverse  effect on the  Borrower's  financial
condition, properties or operations.

          SECTION 5.12 ENVIRONMENTAL MATTERS.

          (a) DEFINITIONS.  As used in this Agreement, the following terms shall
     have the following meanings:

               (i) "Environmental Law" means any federal,  state, local or other
          governmental  statute,  regulation,  law or

                                       28
<PAGE>

          ordinance  dealing  with  the  protection  of  human  health  and  the
          environment.

               (ii) "Hazardous   Substances"  means  pollutants,   contaminants,
          hazardous  substances,   hazardous  wastes,  petroleum  and  fractions
          thereof,  and all other  chemicals,  wastes,  substances and materials
          listed in, regulated by or identified in any Environmental Law.

          (b) To the Borrower's best knowledge,  there are not present in, on or
     under the Premises any Hazardous  Substances in such form or quantity as to
     create any  liability or  obligation  for either the Borrower or the Lender
     under common law of any jurisdiction or under any Environmental Law, and no
     Hazardous  Substances  have  ever been  stored,  buried,  spilled,  leaked,
     discharged,  emitted or released in, on or under the Premises in such a way
     as to create any such liability.

          (c) To the Borrower's best knowledge, the Borrower has not disposed of
     Hazardous  Substances in such a manner as to create any liability under any
     Environmental Law.

          (d) There  are not and there  never  have been any  requests,  claims,
     notices, investigations,  demands, administrative proceedings,  hearings or
     litigation,  relating in any way to the Premises or the Borrower,  alleging
     liability under,  violation of, or noncompliance with any Environmental Law
     or any license,  permit or other authorization  issued pursuant thereto. To
     the Borrower's best knowledge, no such matter is threatened or impending.

          (e) To the Borrower's  best knowledge,  the Borrower's  businesses are
     and  have  in the  past  always  been  conducted  in  accordance  with  all
     Environmental  Laws and all  licenses,  permits  and  other  authorizations
     required pursuant to any Environmental Law and necessary for the lawful and
     efficient operation of such businesses are in the Borrower's possession and
     are in full force and effect.  No permit  required under any  Environmental
     Law is scheduled to expire within 12 months and there is no threat that any
     such permit will be withdrawn, terminated, limited or materially changed.

          (f) To the Borrower's best  knowledge,  the Premises are not and never
     have  been  listed  on the  National  Priorities  List,  the  Comprehensive
     Environmental  Response,  Compensation and Liability  Information System or
     any similar  federal,  state or local list,  schedule,  log,  inventory  or
     database.

          (g)  The   Borrower  has   delivered   to  Lender  all   environmental
     assessments,   audits,  reports,  permits,  licenses

                                       29
<PAGE>

     and other  documents  describing  or relating in any way to the Premises or
     Borrower's businesses.

          SECTION  5.13   SUBMISSIONS   TO  LENDER.   All  financial  and  other
information provided to the Lender by or on behalf of the Borrower in connection
with the Borrower's  request for the credit  facilities  contemplated  hereby is
true and correct in all material respects and, as to projections,  valuations or
proforma  financial  statements,  present  a  good  faith  opinion  as  to  such
projections, valuations and proforma condition and results.

          SECTION 5.14  FINANCING  STATEMENTS.  The Borrower has provided to the
Lender signed financing statements sufficient when filed to perfect the Security
Interest and the other  security  interests  created by the Security  Documents.
When such  financing  statements  are filed in the offices  noted  therein,  the
Lender will have a valid and perfected  security  interest in all Collateral and
all other  collateral  described in the Security  Documents  which is capable of
being perfected by filing financing statements.  None of the Collateral or other
collateral covered by the Security Documents is or will become a fixture on real
estate, unless a sufficient fixture filing is in effect with respect thereto.

          SECTION  5.15  RIGHTS  TO  PAYMENT.  Each  right to  payment  and each
instrument,   document,  chattel  paper  and  other  agreement  constituting  or
evidencing  Collateral or other collateral  covered by the Security Documents is
(or, in the case of all future Collateral or such other collateral, will be when
arising or issued)  the  valid,  genuine  and  legally  enforceable  obligation,
subject to no defense,  setoff or  counterclaim,  of the account debtor or other
obligor named therein or in the Borrower's  records  pertaining thereto as being
obligated to pay such obligation.

                                   ARTICLE VI

                        BORROWER'S AFFIRMATIVE COVENANTS

          So long as the Obligations shall remain unpaid, or the Credit Facility
shall  remain   outstanding,   the  Borrower  will  comply  with  the  following
requirements, unless the Lender shall otherwise consent in writing:

          SECTION 6.1   REPORTING  REQUIREMENTS.  The Borrower will deliver,  or
cause to be delivered,  to the Lender each of the  following,  which shall be in
form and detail acceptable to the Lender:

          (a) as soon as available, and (i) in any event within thirty (30) days
     after the Funding Date, the  Borrower's

                                       30
<PAGE>

     audited  financial  statements  for calendar year 1999 (which shall,  among
     other things, reflect no material adverse change to the financial condition
     of  the  Borrower  as  set  forth  in  the  preliminary  audited  financial
     statements  for calendar  year 1999  described in Section 5.5 hereof),  and
     (ii) in any event  within 120 days after the end of each fiscal year of the
     Borrower, the Borrower's audited financial statements for such fiscal year,
     each of such audited financial  statements with the unqualified  opinion of
     independent  certified  public  accountants  selected by the  Borrower  and
     acceptable to the Lender,  and which shall include the  Borrower's  balance
     sheet as at the end of such fiscal year and the related  statements  of the
     Borrower's  income,  retained  earnings  and cash flows for the fiscal year
     then ended,  prepared,  if the Lender so requests,  on a consolidating  and
     consolidated basis to include any Affiliates,  all in reasonable detail and
     prepared  in  accordance  with  GAAP,  together  with  (i)  copies  of  all
     management  letters prepared by such  accountants;  (ii) a report signed by
     such accountants  stating that in making the  investigations  necessary for
     said opinion they obtained no knowledge,  except as specifically stated, of
     any  Default  or Event  of  Default  hereunder  and all  relevant  facts in
     reasonable  detail to evidence,  and the computations as to, whether or not
     the Borrower is in compliance with the  requirements  set forth in Sections
     6.13, 6.14, 6.15, 6.16, 6.17, 6.18, 6.19, 6.20, 6.21, and 7.10; and (iii) a
     certificate of the Borrower's  chief  financial  officer  stating that such
     financial statements have been prepared in accordance with GAAP and whether
     or not such officer has knowledge of the occurrence of any Default or Event
     of Default  hereunder  and, if so,  stating in reasonable  detail the facts
     with respect thereto;

          (b) as soon as available and in any event within 30 days after the end
     of each month, an unaudited/internal balance sheet and statements of income
     and  retained  earnings of the Borrower as at the end of and for such month
     and for the year to date  period  then  ended,  prepared,  if the Lender so
     requests,  on  a  consolidating  and  consolidated  basis  to  include  any
     Affiliates,  in  reasonable  detail  and  stating in  comparative  form the
     figures for the  corresponding  date and periods in the previous  year, all
     prepared in accordance  with GAAP,  subject to year-end audit  adjustments;
     and accompanied by a certificate of the Borrower's chief financial officer,
     substantially  in the form of  Exhibit  C  hereto  stating  (i)  that  such
     financial statements have been prepared in accordance with GAAP, subject to
     year-end audit adjustments,  (ii) whether or not such officer has knowledge
     of the  occurrence  of any  Default  or  Event  of  Default  hereunder  not
     theretofore  reported and remedied and, if so, stating in reasonable detail
     the
                                       31
<PAGE>

     facts with  respect  thereto,  and (iii) all relevant  facts in  reasonable
     detail to evidence, and the computations as to, whether or not the Borrower
     is in compliance with the  requirements  set forth in Sections 6.13,  6.14,
     6.15, 6.16, 6.17, 6.18, 6.19, 6.20, 6.21, and 7.10;

          (c) within 15 days after the end of each month or more  frequently  if
     the Lender so requires,  agings of the Borrower's  accounts  receivable and
     its accounts payable, an inventory  certification report, and a calculation
     of the  Borrower's  Accounts,  Eligible  Accounts,  Inventory  and Eligible
     Inventory as at the end of such month or shorter time period;

          (d) at least 30 days before the  beginning  of each fiscal year of the
     Borrower, the projected balance sheets and income statements for each month
     of such year, each in reasonable  detail,  representing the Borrower's good
     faith  projections and certified by the Borrower's chief financial  officer
     as being the most  accurate  projections  available  and  identical  to the
     projections used by the Borrower for internal planning  purposes,  together
     with such  supporting  schedules and  information  as the Lender may in its
     discretion require;

          (e) immediately after the commencement  thereof,  notice in writing of
     all litigation and of all proceedings before any governmental or regulatory
     agency  affecting  the  Borrower of the type  described  in Section 5.12 or
     which seek a monetary recovery against the Borrower in excess of $10,000;

          (f) as promptly as  practicable  (but in any event not later than five
     business  days) after an officer of the Borrower  obtains  knowledge of the
     occurrence  of any breach,  default or event of default  under any Security
     Document  or any event  which  constitutes  a Default  or Event of  Default
     hereunder, notice of such occurrence, together with a detailed statement by
     a  responsible  officer of the  Borrower  of the steps  being  taken by the
     Borrower to cure the effect of such breach, default or event;

          (g) as soon as  possible  and in any event  within  30 days  after the
     Borrower knows or has reason to know that any Reportable Event with respect
     to any Plan has occurred,  the statement of the Borrower's  chief financial
     officer  setting forth details as to such  Reportable  Event and the action
     which the Borrower  proposes to take with respect thereto,  together with a
     copy of the notice of such Reportable Event to the Pension Benefit Guaranty
     Corporation;

          (h) as soon as  possible,  and in any event  within 10 days  after the
     Borrower fails to make any quarterly  contribution

                                       32
<PAGE>

     required  with  respect to any Plan under  Section  412(m) of the  Internal
     Revenue Code of 1986,  as amended,  the statement of the  Borrower's  chief
     financial  officer  setting forth details as to such failure and the action
     which the Borrower  proposes to take with respect thereto,  together with a
     copy of any notice of such  failure  required to be provided to the Pension
     Benefit Guaranty Corporation;

          (i) promptly  upon  knowledge  thereof,  notice of (i) any disputes or
     claims by the Borrower's  customers  exceeding $10,000  individually;  (ii)
     credit memos; (iii) any goods returned to or recovered by the Borrower; and
     (iv) any change in the persons  constituting  the  Borrower's  officers and
     directors;

          (j)  promptly  upon  knowledge  thereof,  notice  of any  loss  of or
     material  damage  to any  Collateral  or other  collateral  covered  by the
     Security  Documents or of any substantial  adverse change in any Collateral
     or such other collateral or the prospect of payment thereof;

          (k)  promptly  upon  their  distribution,  copies  of  all  financial
     statements, reports and proxy statements which the Borrower shall have sent
     to its stockholders;

          (1)  promptly  after the  sending  or filing  thereof,  copies of all
     regular  and  periodic  reports  which  the  Borrower  shall  file with the
     Securities and Exchange Commission or any national securities exchange;

          (m)  promptly  upon  knowledge  thereof,  notice  of  the  Borrower's
     violation of any law, rule or  regulation,  the  non-compliance  with which
     could  materially  and  adversely  affect the  Borrower's  business  or its
     financial condition; and

          (n)  from  time to  time,  with  reasonable  promptness,  any and all
     receivables  schedules,  collection  reports,  deposit  records,  equipment
     schedules,  copies of invoices to account debtors,  shipment  documents and
     delivery receipts for goods sold, and such other material, reports, records
     or information as the Lender may request.

          SECTION  6.2   BOOKS AND  RECORDS;  INSPECTION  AND  EXAMINATION.  The
Borrower will keep accurate books of record and account for itself pertaining to
the Collateral and pertaining to the Borrower's business and financial condition
and such other matters as the Lender may from time to time request in which true
and complete entries will be made in accordance with GAAP and, upon the Lender's
request,  will permit any  officer,  employee,  attorney or  accountant  for the
Lender to audit,  review,  make  extracts from

                                       33
<PAGE>

or copy any and all corporate and financial books and records of the Borrower at
all times  during  ordinary  business  hours,  to send and discuss  with account
debtors and other  obligors  requests  for  verification  of amounts owed to the
Borrower,  and to discuss  the  Borrower's  affairs  with any of its  directors,
officers,  employees  or agents.  The  Borrower  will permit the Lender,  or its
employees,  accountants,  attorneys  or  agents,  to  examine  and  inspect  any
Collateral,  other  collateral  covered by the  Security  Documents or any other
property of the Borrower at any time during ordinary business hours.

          SECTION 6.3  ACCOUNT VERIFICATION. The Lender may at any time and from
time to time send or require the Borrower to send requests for  verification  of
accounts or notices of assignment  to account  debtors and other  obligors.  The
Lender may also at any time and from time to time telephone  account debtors and
other obligors to verify accounts.

          SECTION 6.4  COMPLIANCE WITH LAWS.

          (a) The Borrower will (i) comply with the  requirements  of applicable
     laws and regulations,  the  non-compliance  with which would materially and
     adversely  affect its business or its financial  condition and (ii) use and
     keep the  Collateral,  and require that others use and keep the Collateral,
     only for lawful purposes,  without violation of any federal, state or local
     law, statute or ordinance.

          (b)  Without  limiting  the  foregoing   undertakings,   the  Borrower
     specifically  agrees that it will comply with all applicable  Environmental
     Laws and obtain and comply with all permits, licenses and similar approvals
     required by any Environmental Laws, and will not generate,  use, transport,
     treat, store or dispose of any Hazardous  Substances in such a manner as to
     create any liability or obligation under the common law of any jurisdiction
     or any Environmental Law.

          SECTION 6.5  PAYMENT OF TAXES AND OTHER CLAIMS.  The Borrower will pay
or discharge,  when due, (a) all taxes,  assessments  and  governmental  charges
levied or imposed  upon it or upon its income or  profits,  upon any  properties
belonging to it  (including,  without  limitation,  the  Collateral)  or upon or
against the creation,  perfection or continuance of the Security Interest, prior
to the date on which penalties attach thereto, (b) all federal,  state and local
taxes  required  to be  withheld  by it,  and (c) all  lawful  claims for labor,
materials and supplies  which,  if unpaid,  might by law become a lien or charge
upon any  properties of the Borrower;  provided,  that the Borrower shall not be
required  to pay any  such  tax,  assessment,  charge  or  claim  whose  amount,
applicability  or  validity  is being  contested  in good  faith by
appropriate proceedings and for which proper reserves have been made.

                                       34
<PAGE>

          SECTION 6.6  MAINTENANCE OF PROPERTIES.

          (a) The  Borrower  will keep and maintain  the  Collateral,  the other
     collateral  covered  by  the  Security  Documents  and  all  of  its  other
     properties  necessary or useful in its business in good  condition,  repair
     and working  order  (normal wear and tear  excepted)  and will from time to
     time  replace  or repair any worn,  defective  or broken  parts;  provided,
     however,  that nothing in this Section 6.6 shall  prevent the Borrower from
     discontinuing  the operation and  maintenance  of any of its  properties if
     such discontinuance is, in the Lender's judgment,  desirable in the conduct
     of the Borrower's  business and not disadvantageous in any material respect
     to the Lender.

          (b) The  Borrower  will  defend the  Collateral  against all claims or
     demands of all persons  (other than the Lender)  claiming the Collateral or
     any interest therein.

          (c) The Borrower will keep all Collateral and other collateral covered
     by the Security Documents free and clear of all security  interests,  liens
     and encumbrances except Permitted Liens.

          SECTION  6.7   INSURANCE.  The  Borrower  will obtain and at all times
maintain  insurance with insurers believed by the Borrower to be responsible and
reputable,  in such  amounts and against  such risks as may from time to time be
required by the Lender, but in all events in such amounts and against such risks
as is usually  carried by  companies  engaged  in  similar  business  and owning
similar  properties  in the same general  areas in which the Borrower  operates.
Without limiting the generality of the foregoing, the Borrower will at all times
maintain business  interruption  insurance  including coverage for force majeure
and  keep all  tangible  Collateral  insured  against  risks of fire  (including
so-called extended  coverage),  theft,  collision (for Collateral  consisting of
motor  vehicles)  and such  other  risks and in such  amounts  as the Lender may
reasonably  request,  with any loss  payable  to the Lender to the extent of its
interest,  and all  policies of such  insurance  shall  contain a lender's  loss
payable  endorsements for the Lender's benefit acceptable to the Lender, and may
not be canceled or modified by the applicable  insurance  company without thirty
(30) days  prior  written  notice  to the  Lender.  All  policies  of  liability
insurance required hereunder shall name the Lender as an additional insured.

          SECTION 6.8  PRESERVATION OF EXISTENCE. The Borrower will preserve and
maintain  its  existence  and  all  of its  rights,

                                       35
<PAGE>

privileges  and  franchises  necessary or desirable in the normal conduct of its
business  and shall  conduct its business in an orderly,  efficient  and regular
manner.

          SECTION 6.9  DELIVERY OF INSTRUMENTS, ETC. Upon request by the Lender,
the  Borrower  will  promptly  deliver to the Lender in pledge all  instruments,
documents and chattel papers constituting Collateral,  duly endorsed or assigned
by the Borrower.

          SECTION 6.10 LENDER ACCOUNT.

          (a) If,  notwithstanding  the instructions to debtors to make payments
     to any Lockbox for the benefit of the Lender,  the  Borrower  receives  any
     payments on Receivables,  the Borrower shall deposit such payments into the
     Lender  Account.  Until so  deposited,  the  Borrower  shall  hold all such
     payments  in trust  for and as the  property  of the  Lender  and shall not
     commingle such payments with any of its other funds or property.

          (b) Amounts  deposited in the Lender  Account  shall not bear interest
     and shall not be subject to withdrawal  by the Borrower,  except after full
     payment and discharge of all Obligations.

          (c) All deposits in the Lender  Account shall  constitute  proceeds of
     Collateral and shall not constitute payment of the Obligations.  The Lender
     from time to time at its  discretion  may,  after  allowing two (2) Banking
     Days,  transfer  such  funds to the  Lender's  general  account  and  after
     allowing one (1) additional  Banking Day, apply such deposited funds in the
     Lender Account to the payment of the Obligations, in any order or manner of
     application satisfactory to the Lender.

          (d) All items  deposited  in the  Lender  Account  shall be subject to
     final payment. If any such item is returned uncollected,  the Borrower will
     immediately pay the Lender,  or, for items deposited in the Lender Account,
     the bank maintaining such account, the amount of that item, or such bank at
     its discretion may charge any uncollected item to the Borrower's commercial
     account or other  account.  The Borrower  shall be liable as an endorser on
     all items deposited in the Lender Account,  whether or not in fact endorsed
     by the Borrower.

          SECTION 6.11  RESERVED.

          SECTION 6.12  PERFORMANCE  BY THE LENDER.  If the Borrower at any time
fails to perform or observe any of the  foregoing  covenants  contained  in this
Article VI or elsewhere herein,  and if

                                       36
<PAGE>

such failure  shall  continue for a period of ten calendar days after the Lender
gives the  Borrower  written  notice  thereof (or in the case of the  agreements
contained in Sections 6.5, 6.7 and 6.10, immediately upon the occurrence of such
failure, without notice or lapse of time), the Lender may, but need not, perform
or  observe  such  covenant  on behalf  and in the name,  place and stead of the
Borrower (or, at the Lender's  option,  in the Lender's  name) and may, but need
not,  take any and all  other  actions  which the  Lender  may  reasonably  deem
necessary to cure or correct such failure (including,  without  limitation,  the
payment of taxes, the satisfaction of security interests, liens or encumbrances,
the performance of obligations  owed to account  debtors or other obligors,  the
procurement and maintenance of insurance, the execution of assignments, security
agreements and financing  statements,  and the endorsement of instruments);  and
the  Borrower  shall  thereupon  pay to the  Lender on demand  the amount of all
monies expended and all costs and expenses (including reasonable attorneys' fees
and legal expenses)  incurred by the Lender in connection with or as a result of
the performance or observance of such agreements or the taking of such action by
the Lender, together with interest thereon from the date expended or incurred at
the Floating Rate. To facilitate the Lender's  performance or observance of such
covenants of the Borrower,  the Borrower hereby irrevocably appoints the Lender,
or the Lender's  delegate,  acting  alone,  as the  Borrower's  attorney in fact
(which  appointment  is coupled  with an  interest)  with the right (but not the
duty) from time to time to create, prepare, complete,  execute, deliver, endorse
or file in the name  and on  behalf  of the  Borrower  any and all  instruments,
documents, assignments, security agreements, financing statements,  applications
for  insurance  and other  agreements  and  writings  required  to be  obtained,
executed, delivered or endorsed by the Borrower under this Section 6.12.

          SECTION 6.13 RESERVED.

          SECTION 6.14 MINIMUM DEBT SERVICE  COVERAGE  RATIO.  The Borrower will
maintain at all times on a year-to-date  basis its Debt Service  Coverage Ratio,
determined  as at the end of each fiscal  quarter and year end, at not less than
1.10 to 1.00

          SECTION 6.15 RESERVED.

          SECTION 6.16 RESERVED.

          SECTION 6.17 RESERVED.

          SECTION 6.18 RESERVED.

          SECTION 6.19  MAXIMUM  MONTHLY NET LOSS.  The Borrower  will not incur
during any calendar  month a net loss,  i.e.  negative

                                       37
<PAGE>

Net Income,  in excess of ($50,000)  determined as of each  calendar  month end,
except  during the calendar  month of January  during each fiscal year for which
such loss shall not exceed ($100,000).

          SECTION 6.20 MINIMUM  QUARTERLY NET INCOME.  The Borrower will achieve
as of the end of each fiscal  quarter,  a minimum Net Income of not less than $0
for such  quarter;  provided  however that for the first fiscal  quarter  ending
March 31st of each fiscal year,  the Borrower  shall be permitted to incur a net
loss, i.e. negative Net Income, up to but not in excess of ($150,000).

          SECTION 6.21 MINIMUM  ANNUAL NET INCOME.  The Borrower will achieve as
of each fiscal year end described  below, Net Income of not less than the amount
set forth opposite such year end:

                 FYE                     MINIMUM NET INCOME
                 ---                     ------------------
               12/31/00                        $50,000
               12/31/01                       $150,000
               12/31/02                       $200,000

          SECTION 6.22 RESERVED.

                                   ARTICLE VII

                               NEGATIVE COVENANTS

          So long as the Obligations shall remain unpaid, or the Credit Facility
shall remain  outstanding,  the Borrower agrees that, without the Lender's prior
written consent:

          SECTION 7.1  LIENS.  The Borrower will not create,  incur or suffer to
exist any mortgage,  deed of trust, pledge, lien, security interest,  assignment
or transfer upon or of any of its assets,  now owned or hereafter  acquired,  to
secure  any  indebtedness;   EXCLUDING,  HOWEVER,  from  the  operation  of  the
foregoing, the following (collectively, "Permitted Liens"):

          (a)  in the  case  of any of  the  Borrower's  property  which  is not
     Collateral  or  other  collateral  described  in  the  Security  Documents,
     covenants,  restrictions,  rights,  easements and minor  irregularities  in
     title which do not materially  interfere  with the  Borrower's  business or
     operations as presently conducted;

          (b) mortgages,  deeds of trust, pledges, liens, security interests and
     assignments  in  existence  on the date hereof and listed in  SCHEDULE  7.1
     hereto,  securing  indebtedness  for borrowed money permitted under Section
     7.2;  provided,  however,  that with  respect  to the  indebtedness  of the
     Borrower owing to
                                       38
<PAGE>

KBK Financial,  Inc., such  indebtedness  and all deeds of trust,  mortgages and
other liens  granted by the Borrower and securing  such  indebtedness,  together
with the  indebtedness  secured  thereby,  shall at all times remain subject and
subordinate to the Obligations and the Security Interest,  the Deed of Trust and
all other liens and security interests created by the Security  Documents,  each
pursuant to the terms and conditions set forth in the Subordination Agreement;

          (c) the Security Interest and liens and security  interests created by
     the Security Documents; and

          (d) purchase money security  interests  relating to the acquisition of
     machinery and equipment of the Borrower not exceeding the lesser of cost or
     fair market value  thereof,  not exceeding  $25,000 for any one purchase or
     $100,000 in the aggregate  during any fiscal year and so long as no Default
     Period is then in  existence  and none would exist  immediately  after such
     acquisition.

          SECTION 7.2 INDEBTEDNESS. The Borrower will not incur, create, assume
or permit to exist any  indebtedness  or  liability  on account of  deposits  or
advances or any  indebtedness  for borrowed money or letters of credit issued on
the  Borrower's  behalf,  or any other  indebtedness  or liability  evidenced by
notes, bonds, debentures or similar obligations, except:

          (a) indebtedness arising hereunder;

          (b)  indebtedness  of the Borrower in existence on the date hereof and
     listed in SCHEDULE 7.2 hereto; provided,  however, that with respect to the
     indebtedness   of  the  Borrower  owing  to  KBK  Financial,   Inc.,   such
     indebtedness  and all deeds of trust,  mortgages and other liens granted by
     the Borrower and securing such indebtedness, together with the indebtedness
     secured  thereby,  shall at all times remain subject and subordinate to the
     Obligations  and the  Security  Interest,  the Deed of Trust  and all other
     liens and  security  interests  created  by the  Security  Documents,  each
     pursuant  to the  terms  and  conditions  set  forth  in the  Subordination
     Agreement; and

          (c)  indebtedness  relating  to liens  permitted  in  accordance  with
     Section 7.1.

          SECTION  7.3  GUARANTIES.  The Borrower  will not assume,  guarantee,
endorse or otherwise  become directly or contingently  liable in connection with
any obligations of any other Person, except:

                                       39
<PAGE>

          (a) the  endorsement  of  negotiable  instruments  by the Borrower for
     deposit or collection  or similar  transactions  in the ordinary  course of
     business; and

          (b)   guaranties,   endorsements   and  other  direct  or   contingent
     liabilities  in  connection  with  the  obligations  of other  Persons,  in
     existence on the date hereof and listed in SCHEDULE 7.2 hereto.

          SECTION 7.4 INVESTMENTS AND SUBSIDIARIES.

          (a) The Borrower will not purchase or hold  beneficially  any stock or
     other  securities or evidences of indebtedness  of, make or permit to exist
     any loans or advances  to, or make any  investment  or acquire any interest
     whatsoever  in,  any  other  Person,  including  specifically  but  without
     limitation any partnership or joint venture, except:

               (i)  investments  in direct  obligations  of the United States of
          America or any agency or  instrumentality  thereof  whose  obligations
          constitute  full faith and credit  obligations of the United States of
          America having a maturity of one year or less, commercial paper issued
          by  U.S.  corporations  rated  "A-1"  or  "A-2"  by  Standard  & Poors
          Corporation  or  "P-1"  or  "P-2"  by  Moody's  Investors  Service  or
          certificates of deposit or bankers'  acceptances  having a maturity of
          one year or less  issued by  members  of the  Federal  Reserve  System
          having  deposits  in excess of  $100,000,000  (which  certificates  of
          deposit or  bankers'  acceptances  are fully  insured  by the  Federal
          Deposit Insurance Corporation);

               (ii)  travel advances or loans to the  Borrower's  officers  and
          employees not exceeding at any one time an aggregate of $10,000; and

              (iii) advances in the form of progress payments,  prepaid rent not
          exceeding three (3) months or security deposits.

          (b) The  Borrower  will not create or permit to exist any  Subsidiary,
     other than the Subsidiar(y)(ies) in existence on the date hereof and listed
     in Schedule 5.4.

          SECTION 7.5  DIVIDENDS.  Except as set forth below,  the Borrower will
not declare or pay any dividends  (other than dividends  payable solely in stock
of the Borrower) on any class of its stock or make any payment on account of the
purchase, redemption or other retirement of any shares of such stock or make any
distribution in respect thereof, either directly or indirectly.

                                       40
<PAGE>

          SECTION  7.6  SALE OR  TRANSFER  OF  ASSETS;  SUSPENSION  OF  BUSINESS
OPERATIONS.  The Borrower will not sell,  lease,  assign,  transfer or otherwise
dispose of (i) the stock of any  Subsidiary,  (ii) all or a substantial  part of
its assets,  or (iii) any  Collateral  or any interest  therein  (whether in one
transaction or in a series of  transactions)  to any other Person other than the
sale of  Inventory in the  ordinary  course of business and will not  liquidate,
dissolve or suspend  business  operations.  The Borrower  will not in any manner
transfer  any  property  without  prior or present  receipt of full and adequate
consideration.

          SECTION  7.7   CONSOLIDATION  AND  MERGER;  ASSET  ACQUISITIONS.   The
Borrower will not consolidate with or merge into any Person, or permit any other
Person to merge into it, or acquire (in a  transaction  analogous  in purpose or
effect to a consolidation or merger) all or substantially  all the assets of any
other Person.

          SECTION 7.8  SALE AND LEASEBACK.  The Borrower will not enter into any
arrangement,  directly or indirectly, with any other Person whereby the Borrower
shall sell or  transfer  any real or  personal  property,  whether  now owned or
hereafter acquired, and then or thereafter rent or lease as lessee such property
or any part thereof or any other property which the Borrower  intends to use for
substantially  the same  purpose  or  purposes  as the  property  being  sold or
transferred.

          SECTION 7.9  RESTRICTIONS ON NATURE OF BUSINESS. The Borrower will not
engage in any line of business materially  different from that presently engaged
in by the Borrower and will not purchase,  lease or otherwise acquire assets not
related to its business.

          SECTION 7.10  CAPITAL  EXPENDITURES.  The  Borrower  will not incur or
contract  to incur  Capital  Expenditures  (inclusive  of  Capital  Expenditures
financed with other lenders under Sections 7.1 and 7.2 hereof) during any fiscal
year,  of more than $100,000 (or $125,000 for fiscal year 2000) in the aggregate
or more than $25,000 in any one transaction.

          SECTION  7.11  ACCOUNTING.  The  Borrower  will not adopt any material
change in  accounting  principles  other than as required by GAAP.  The Borrower
will not adopt, permit or consent to any change in its fiscal year.

          SECTION 7.12 DISCOUNTS,  ETC. The Borrower will not, after notice from
the Lender,  grant any  discount,  credit or  allowance  to any  customer of the
Borrower or accept any return of goods sold, or at any time  (whether  before or
after notice from the Lender) modify,  amend,  subordinate,  cancel or terminate
the obligation of any account debtor or other obligor of the Borrower.

                                       41
<PAGE>

          SECTION 7.13 DEFINED  BENEFIT  PENSION  PLANS.  The Borrower  will not
adopt,  create,  assume or become a party to any defined  benefit  pension plan,
unless disclosed to the Lender pursuant to Section 5.10.

          SECTION 7.14 OTHER DEFAULTS.  The Borrower will not permit any breach,
default or event of default to occur under any note, loan agreement,  indenture,
lease,  mortgage,  contract for deed,  security  agreement or other  contractual
obligation binding upon the Borrower.

          SECTION 7.15 PLACE OF BUSINESS;  NAME.  The Borrower will not transfer
its chief executive  office or principal place of business,  or move,  relocate,
close or sell any business  location.  The Borrower will not permit any tangible
Collateral  or any records  pertaining  to the  Collateral  to be located in any
state or area in which,  in the event of such  location,  a financing  statement
covering  such  Collateral  would be  required  to be, but has not in fact been,
filed in order to perfect the Security  Interest.  The Borrower  will not change
its name.

          SECTION 7.16  ORGANIZATIONAL  DOCUMENTS;  S  CORPORATION  STATUS.  The
Borrower  will  not  amend  its  certificate  of   incorporation,   articles  of
incorporation  or bylaws.  The Borrower will not become an S Corporation  within
the meaning of the Internal Revenue Code of 1986, as amended.

          SECTION 7.17  SALARIES.  The  Borrower  will  not  pay  excessive  or
unreasonable   salaries,   bonuses,   commissions,   consultant  fees  or  other
compensation;  or increase the salary,  bonus,  commissions,  consultant fees or
other  compensation  of any director,  officer or  consultant,  or any member of
their families, by more than 10% in any one year, either individually or for all
such persons in the  aggregate,  or pay any such  increase from any source other
than profits earned in the year of payment.

          SECTION 7.18 CHANGE IN OWNERSHIP.  The Borrower will not issue or sell
any stock, or any options, warrants or convertible indebtedness for the issuance
of any  stock,  of the  Borrower  so as to change the  percentage  of voting and
non-voting stock owned by each of the Borrower's shareholders,  and the Borrower
will not  permit or suffer to occur the sale,  transfer,  assignment,  pledge or
other  disposition of any or all of the issued and outstanding  shares of stock,
or any options,  warrants or  convertible  indebtedness  for the issuance of any
stock, of the Borrower;  provided,  however, (a) "MKGI" may purchase the capital
stock of any other  shareholder  of the Borrower,  (b) the Borrower may issue to
KBK Financial, Inc. the capital stock contemplated by that certain Stock Warrant
dated May 15, 1998 between the borrower and KBK Financial, Inc. for the issuance
of certain  shares of preferred

                                       42

<PAGE>

stock and that certain stock warrant dated May 15, 1998 between the Borrower and
KBK Financial,  Inc. for the issuance of certain shares of common stock, each in
accordance  with the terms and conditions set forth therein  without any further
modification  except  with the prior  written  consent  of the  Lender,  (c) the
issuance of common stock pursuant to the  Borrower's  stock option plan provided
that at no time shall the  percentage  of voting and  non-voting  capital  stock
owned by any such employees exceed more than ten percent (10%) of the issued and
outstanding voting and non-voting stock of the Borrower, and (d) the issuance of
common stock to MKGI or in  connection  with the  conversion  of the  Borrower's
Class A Convertible  Preferred  Stock,  Class B Convertible  Preferred  Stock or
Class C Convertible  Preferred  Stock  provided  further that at all times after
consummation of such conversions, MKGI shall own with the power to vote at least
fifty-one  percent (51%) of the issued and  outstanding  voting capital stock of
the Borrower.

          SECTION 7.19 CHANGE IN SENIOR MANAGEMENT.  The Borrower represents and
warrants to Lender that the current chief  executive  officer,  chief  financial
officer and chief  operating  officer for the Borrower  are  Fredrick  Schulman,
Julie P. Tedesco and Harry J. Trube, respectively,  and the Borrower agrees that
it will not make any change in such senior management positions or terminate any
such senior manager without the prior written consent of the Lender.

                                  ARTICLE VIII
                     EVENTS OF DEFAULT, RIGHTS AND REMEDIES

          SECTION  8.1 EVENTS OF DEFAULT.  "Event of  Default",  wherever  used
herein, means any one of the following events:

          (a) Default in the payment of the Obligations when they become due and
     payable;

          (b) Default in the payment of any fees, commissions, costs or expenses
     required to be paid by the Borrower under this Agreement;

          (c)  Default  in  the  performance,  or  breach,  of any  covenant  or
     agreement of the Borrower contained in this Agreement;

          (d) The Borrower,  MKGI or any Guarantor shall be or become insolvent,
     or admit in writing  its or his  inability  to pay its or his debts as they
     mature,  or make  an  assignment  for  the  benefit  of  creditors;  or the
     Borrower,  MKGI  or  any  Guarantor  shall  apply  for  or  consent  to the
     appointment of any receiver,  trustee,  or similar officer for it or him or
     for all or any substantial  part of its or his property;  or such receiver,
     trustee or similar  officer shall be appointed  without the  application or
     consent  of the  Borrower  or such

                                       43
<PAGE>

     Guarantor, as the case may be; or the Borrower, MKGI or any Guarantor shall
     institute  (by petition,  application,  answer,  consent or otherwise)  any
     bankruptcy, insolvency, reorganization,  arrangement, readjustment of debt,
     dissolution,  liquidation or similar proceeding relating to it or him under
     the laws of any  jurisdiction;  or any such proceeding  shall be instituted
     (by petition,  application or otherwise) against the Borrower,  MKGI or any
     such Guarantor;  or any judgment,  writ, warrant of attachment or execution
     or similar process shall be issued or levied against a substantial  part of
     the property of the Borrower or any Guarantor;

          (e) A petition shall be filed by or against the Borrower,  MKGI or any
     Guarantor  under the United States  Bankruptcy  Code naming the Borrower or
     such Guarantor as debtor;

          (f) KBK Financial,  Inc. shall breach or be in violation of any of the
     terms and  provisions  set forth in the  Subordination  Agreement;  or MKGI
     shall be in breach of or violate any of the terms or  provisions  set forth
     in the Keep Well Agreement.

          (g)  Any  representation  or  warranty  made by the  Borrower  in this
     Agreement,  by any Guarantor in any guaranty delivered to the Lender, or by
     the Borrower (or any of its  officers) or any  Guarantor in any  agreement,
     certificate,   instrument  or  financial   statement  or  other   statement
     contemplated by or made or delivered pursuant to or in connection with this
     Agreement or any such  guaranty  shall prove to have been  incorrect in any
     material respect when deemed to be effective;

          (h) The rendering against the Borrower of a final judgment,  decree or
     order for the payment of money in excess of $25,000 and the  continuance of
     such judgment,  decree or order unsatisfied and in effect for any period of
     30 consecutive days without a stay of execution;

          (i) A default  under any bond,  debenture,  note or other  evidence of
     indebtedness  of the Borrower owed to any Person other than the Lender,  or
     under any  indenture or other  instrument  under which any such evidence of
     indebtedness has been issued or by which it is governed, or under any lease
     of any of the  Premises,  and the  expiration of the  applicable  period of
     grace, if any, specified in such evidence of indebtedness, indenture, other
     instrument or lease;

          (j) Any Reportable  Event,  which the Lender determines in good faith
     might  constitute  grounds  for  the  termination  of any

                                       44

<PAGE>

     Plan or for the appointment by the appropriate United States District Court
     of a trustee to administer any Plan,  shall have occurred and be continuing
     30 days after  written  notice to such effect  shall have been given to the
     Borrower  by the  Lender;  or a trustee  shall  have been  appointed  by an
     appropriate  United States  District  Court to administer  any Plan; or the
     Pension Benefit Guaranty  Corporation shall have instituted  proceedings to
     terminate any Plan or to appoint a trustee to  administer  any Plan; or the
     Borrower  shall  have filed for a  distress  termination  of any Plan under
     Title IV of ERISA;  or the Borrower shall have failed to make any quarterly
     contribution  required with respect to any Plan under Section 412(m) of the
     Internal Revenue Code of 1986, as amended,  which the Lender  determines in
     good faith may by itself, or in combination with any such failures that the
     Lender  may  determine  are  likely to occur in the  future,  result in the
     imposition of a lien on the Borrower's assets in favor of the Plan;

          (k) An event of default shall occur under or the Borrower shall be in
     breach of any term or provision  under any  Security  Document or under any
     other  security  agreement,  mortgage,  deed of trust,  assignment or other
     instrument or agreement  securing any obligations of the Borrower hereunder
     or under any note;

          (l) The Borrower shall liquidate,  dissolve, terminate or suspend its
     business  operations  or  otherwise  fail to operate  its  business  in the
     ordinary course,  or sell all or substantially  all of its assets,  without
     the Lender's prior written consent;

          (m) The Borrower  shall fail to pay,  withhold,  collect or remit any
     tax or tax  deficiency  when assessed or due (other than any tax deficiency
     which is being  contested in good faith and by proper  proceedings  and for
     which it shall have set aside on its books adequate  reserves  therefor) or
     notice of any state or federal tax liens shall be filed or issued;

          (n)  Default in the payment of any amount owed by the Borrower to the
     Lender other than any indebtedness arising hereunder;

          (o) Any  Guarantor  shall  repudiate,  purport  to  revoke or fail to
     perform any such Guarantor's obligations under such Guarantor's guaranty in
     favor of the  Lender,  any  individual  Guarantor  shall  die or any  other
     Guarantor shall cease to exist;

                                       45
<PAGE>

          (p) The Borrower  shall take or participate in any action which would
     be prohibited under the provisions of any  Subordination  Agreement or make
     any  payment  on  the   Subordinated   Indebtedness   (as  defined  in  the
     Subordination  Agreement) that any Person was not entitled to receive under
     the provisions of the Subordination Agreement;

          (q) Any event or  circumstance  with  respect to the  Borrower  shall
     occur such that the Lender shall believe in good faith that the prospect of
     payment of all or any part of the  Obligations  or the  performance  by the
     Borrower  under the Loan  Documents  is  impaired or any  material  adverse
     change in the business or financial condition of the Borrower shall occur;

          (r) Any breach, default or event of default by or attributable to any
     Affiliate under any agreement between such Affiliate and the Lender; or

          (s) Any breach by the Borrower of the terms under Section 7.19 hereof
     or the chief executive officer,  chief financial officer or chief operating
     officer of the Borrower  shall resign and the Borrower shall fail within 90
     calendar  days  thereafter  to engage  and  appoint a  qualified  successor
     acceptable to the Lender in its sole and absolute discretion.

          SECTION  8.2  RIGHTS AND  REMEDIES.  During any Default  Period,  the
Lender may exercise any or all of the following rights and remedies:

          (a) the Lender may, by notice to the Borrower,  declare the Commitment
     to be terminated, whereupon the same shall forthwith terminate;

          (b) the Lender may, by notice to the Borrower, declare the Obligations
     to be forthwith due and payable, whereupon all Obligations shall become and
     be forthwith  due and  payable,  without  presentment,  notice of dishonor,
     protest or further  notice of any kind,  all of which the  Borrower  hereby
     expressly waives;

          (c) the Lender may, without notice to the Borrower and without further
     action,  apply any and all money owing by the Lender to the Borrower to the
     payment of the Obligations;

          (d) the  Lender  may  exercise  and  enforce  any and all  rights  and
     remedies  available  upon  default  to  a  secured  party  under  the  UCC,
     including,  without limitation, the right to take possession of Collateral,
     or any evidence thereof, proceeding without judicial process or by judicial
     process

                                       46
<PAGE>

     (without  a prior  hearing or notice  thereof,  which the  Borrower  hereby
     expressly  waives) and the right to sell, lease or otherwise dispose of any
     or all of the Collateral,  and, in connection therewith,  the Borrower will
     on demand  assemble the Collateral and make it available to the Lender at a
     place to be designated by the Lender which is reasonably convenient to both
     parties;

          (e) the Lender may exercise and enforce its rights and remedies  under
     the Loan Documents; and

          (f) the Lender may exercise any other rights and remedies available to
     it by law or agreement.

Notwithstanding  the  foregoing,  upon the  occurrence  of an  Event of  Default
described in  subsections  (d) or (e) of Section 8.1, the  Obligations  shall be
immediately due and payable automatically without presentment,  demand,  protest
or notice of any kind.

          SECTION  8.3   CERTAIN  NOTICES.  If  notice  to the  Borrower  of any
intended  disposition of Collateral or any other intended  action is required by
law  in  a  particular  instance,  such  notice  shall  be  deemed  commercially
reasonable  if given  (in the  manner  specified  in  Section  9.3) at least ten
calendar days before the date of intended disposition or other action.

                                   ARTICLE IX

                                  MISCELLANEOUS

          SECTION 9.1  NO WAIVER;  CUMULATIVE  REMEDIES.  No failure or delay by
the Lender in  exercising  any right,  power or remedy under the Loan  Documents
shall operate as a waiver thereof;  nor shall any single or partial  exercise of
any such right,  power or remedy preclude any other or further  exercise thereof
or the  exercise of any other right,  power or remedy under the Loan  Documents.
The remedies  provided in the Loan Documents are cumulative and not exclusive of
any remedies provided by law.

          SECTION 9.2  AMENDMENTS, ETC. No amendment, modification,  termination
or waiver of any  provision of any Loan  Document or consent to any departure by
the Borrower  therefrom or any release of a Security Interest shall be effective
unless  the same shall be in writing  and  signed by the  Lender,  and then such
waiver or consent shall be effective  only in the specific  instance and for the
specific  purpose for which given. No notice to or demand on the Borrower in any
case shall  entitle  the  Borrower  to any other or further  notice or demand in
similar or other circumstances.

                                       47
<PAGE>

          SECTION 9.3  ADDRESSES FOR NOTICES, ETC. Except as otherwise expressly
provided  herein,  all  notices,  requests,  demands  and  other  communications
provided  for  under the Loan  Documents  shall be in  writing  and shall be (a)
personally  delivered,  (b) sent by first class United States mail,  (c) sent by
overnight  courier of national  reputation,  or (d) transmitted by telecopy,  in
each case  addressed or telecopied to the party to whom notice is being given at
its address or telecopier number as set forth below:

                  If to the Borrower:

                  Our Food Products Group, Inc.
                  #1 Chisholm Trail
                  Buda, Texas 78610
                  Telecopier: 512-295-3020
                  Attention: Julie P. Tedesco, CFO

                  If to the Lender:

                  Wells Fargo Business Credit, Inc.
                  Norwest Center   N9312-040
                  Sixth Street and Marquette Avenue
                  Minneapolis, Minnesota 55479
                  Telecopier:  612/341-2472
                  Attention: Michelle Salisbury

                  and to:

                  Wells Fargo Business Credit, Inc.
                  6100 Bandera Road
                  Suite SL100
                  San Antonio, Texas 78238
                  Telecopier: 210/856-8989
                  Attention: Michelle Salisbury

or,  as to each  party,  at such  other  address  or  telecopier  number  as may
hereafter  be  designated  by such party in a written  notice to the other party
complying  as to  delivery  with the terms of this  Section.  All such  notices,
requests, demands and other communications shall be deemed to have been given on
(a) the date received if personally delivered, (b) when deposited in the mail if
delivered by mail,  (c) the date sent if sent by overnight  courier,  or (d) the
date of transmission  if delivered by telecopy,  except that notices or requests
to the  Lender  pursuant  to any of the  provisions  of  Article II shall not be
effective until received by the Lender.

          SECTION 9.4  RESERVED.

                                       48
<PAGE>

          SECTION 9.5 FURTHER  DOCUMENTS.  The Borrower  will from time to time
execute and deliver or endorse any and all instruments,  documents, conveyances,
assignments,  security agreements, financing statements and other agreements and
writings  that the Lender may  reasonably  request in order to secure,  protect,
perfect or enforce the Security  Interest or the Lender's  rights under the Loan
Documents  (but any  failure to request or assure  that the  Borrower  executes,
delivers  or  endorses  any such item shall not  affect or impair the  validity,
sufficiency or enforceability  of the Loan Documents and the Security  Interest,
regardless  of  whether  any such  item was or was not  executed,  delivered  or
endorsed in a similar context or on a prior occasion).

          SECTION 9.6 COLLATERAL. This Agreement does not contemplate a sale of
accounts,  contract  rights or chattel  paper,  and,  as  provided  by law,  the
Borrower is entitled to any surplus and shall remain liable for any  deficiency.
The  Lender's  duty of care with respect to  Collateral  in its  possession  (as
imposed by law) shall be deemed  fulfilled  if it exercises  reasonable  care in
physically keeping such Collateral,  or in the case of Collateral in the custody
or possession of a bailee or other third person,  exercises  reasonable  care in
the  selection  of the bailee or other  third  person,  and the Lender  need not
otherwise preserve, protect, insure or care for any Collateral. The Lender shall
not be obligated  to preserve  any rights the  Borrower  may have against  prior
parties,  to realize on the  Collateral  at all or in any  particular  manner or
order or to apply any cash proceeds of the Collateral in any particular order of
application.

          SECTION 9.7 COSTS AND EXPENSES.  The Borrower agrees to pay on demand
all costs and expenses, including (without limitation) attorneys' fees, incurred
by the Lender in  connection  with the  Obligations,  this  Agreement,  the Loan
Documents,  and any other document or agreement  related hereto or thereto,  and
the transactions  contemplated  hereby,  including  without  limitation all such
costs,   expenses  and  fees  incurred  in  connection  with  the   negotiation,
preparation, execution, amendment,  administration,  performance, collection and
enforcement  of the  Obligations  and all such  documents and agreements and the
creation, perfection,  protection,  satisfaction,  foreclosure or enforcement of
the Security Interest.

          SECTION  9.8  INDEMNITY.  In  addition  to the  payment  of  expenses
pursuant to Section  9.7,  the  Borrower  agrees to  indemnify,  defend and hold
harmless  the  Lender,  and  any  of  its  participants,   parent  corporations,
subsidiary corporations,  affiliated corporations,  successor corporations,  and
all present and future officers, directors,  employees,  attorneys and agents of
the  foregoing  (the  "Indemnitees")  from  and  against  any of  the  following
(collectively, "Indemnified Liabilities"):

                                       49
<PAGE>

                    (i)  any  and  all  transfer   taxes,   documentary   taxes,
          assessments or charges made by any governmental authority by reason of
          the execution and delivery of the Loan  Documents or the making of the
          Advances;

                    (ii) any claims,  loss or damage to which any Indemnitee may
          be subjected if any  representation  or warranty  contained in Section
          5.12  proves  to be  incorrect  in any  respect  or as a result of any
          violation of the covenant contained in Section 6.4(b); and

                    (iii)  any  and  all  other  liabilities,  losses,  damages,
          penalties, judgments, suits, claims, costs and expenses of any kind or
          nature whatsoever (including,  without limitation, the reasonable fees
          and disbursements of counsel) in connection with the foregoing and any
          other investigative,  administrative or judicial proceedings,  whether
          or not such Indemnitee shall be designated a party thereto,  which may
          be imposed on, incurred by or asserted against any such Indemnitee, in
          any  manner  related to or arising  out of or in  connection  with the
          making of the Advances  and the Loan  Documents or the use or intended
          use of the proceeds of the Advances.

If any investigative,  judicial or administrative proceeding arising from any of
the foregoing is brought against any Indemnitee, upon such Indemnitee's request,
the  Borrower,  or counsel  designated by the Borrower and  satisfactory  to the
Indemnitee, will resist and defend such action, suit or proceeding to the extent
and in the manner directed by the  Indemnitee,  at the Borrower's sole costs and
expense.  Each  Indemnitee will use its best efforts to cooperate in the defense
of any  such  action,  suit  or  proceeding.  If the  foregoing  undertaking  to
indemnify,  defend and hold harmless may be held to be unenforceable  because it
violates any law or public  policy,  the Borrower  shall  nevertheless  make the
maximum  contribution to the payment and satisfaction of each of the Indemnified
Liabilities which is permissible under applicable law. The Borrower's obligation
under this Section 9.8 shall survive the  termination  of this Agreement and the
discharge of the Borrower's other obligations hereunder.

          SECTION 9.9  PARTICIPANTS.  The Lender and its participants,  if any,
are not partners or joint venturers, and the Lender shall not have any liability
or  responsibility   for  any  obligation,   act  or  omission  of  any  of  its
participants.  All rights and powers specifically  conferred upon the Lender may
be transferred or delegated to any of the Lender's  participants,  successors or
assigns.

                                       50
<PAGE>

          SECTION 9.10 EXECUTION IN COUNTERPARTS.  This Agreement and other Loan
Documents may be executed in any number of  counterparts,  each of which when so
executed  and  delivered  shall be  deemed  to be an  original  and all of which
counterparts, taken together, shall constitute but one and the same instrument.

          SECTION  9.11  BINDING   EFFECT;   ASSIGNMENT;   COMPLETE   AGREEMENT;
EXCHANGING  INFORMATION.  The Loan Documents  shall be binding upon and inure to
the benefit of the Borrower and the Lender and their  respective  successors and
assigns,  except that the Borrower shall not have the right to assign its rights
thereunder or any interest  therein without the Lender's prior written  consent.
This  Agreement,  together with the Loan  Documents,  comprises the complete and
integrated  agreement of the parties on the subject matter hereof and supersedes
all prior  agreements,  written or oral, on the subject matter  hereof.  Without
limiting the Lender's right to share information  regarding the Borrower and its
Affiliates  with the  Lender's  participants,  accountants,  lawyers  and  other
advisors,  the  Lender,  Norwest  Corporation,   and  all  direct  and  indirect
subsidiaries of Norwest  Corporation,  may exchange any and all information they
may have in their possession regarding the Borrower and its Affiliates,  and the
Borrower  waives any right of  confidentiality  it may have with respect to such
exchange of such information.

          SECTION  9.12  SEVERABILITY  OF  PROVISIONS.  Any  provision  of  this
Agreement  which is  prohibited or  unenforceable  shall be  ineffective  to the
extent  of  such  prohibition  or  unenforceability   without  invalidating  the
remaining provisions hereof.

          SECTION 9.13 HEADINGS.  Article and Section headings in this Agreement
are included herein for convenience of reference only and shall not constitute a
part of this Agreement for any other purpose.

          SECTION 9.14 GOVERNING LAW; JURISDICTION, VENUE; WAIVER OF JURY TRIAL.
The Loan  Documents  shall be governed by and construed in  accordance  with the
substantive  laws (other than  conflict  laws) of the State of  Minnesota.  This
Agreement  shall be governed by and construed in accordance with the substantive
laws (other than conflict  laws) of the State of Minnesota.  The parties  hereto
hereby (i) consents to the personal jurisdiction of the state and federal courts
located in the State of Minnesota in connection with any controversy  related to
this  Agreement;  (ii) waives any  argument  that venue in any such forum is not
convenient,  (iii)  agrees that any  litigation  initiated  by the Lender or the
Borrower in connection  with this Agreement or the other Loan Documents shall be
venued in either the District Court of Hennepin County, Minnesota, or the United
States District Court, District of Minnesota,  Fourth Division;  and (iv) agrees
that a

                                       51
<PAGE>

final  judgment in any such suit,  action or proceeding  shall be conclusive and
may be enforced in other  jurisdictions  by suit on the judgment or in any other
manner  provided by law.  Notwithstanding  the  forgoing,  nothing  herein shall
affect the right of the Lender to effect  service of process in any other manner
permitted by law or shall limit the right to sue in any other jurisdiction.  THE
PARTIES WAIVE ANY RIGHT TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING BASED ON OR
PERTAINING TO THIS AGREEMENT.

          [The remainder of this page has been intentionally left blank.]

                                       52
<PAGE>

          IN WITNESS  WHEREOF,  the  parties  hereto have caused this Credit and
Security  Agreement to be executed by their respective  officers  thereunto duly
authorized as of the date first above written.

WELLS FARGO BUSINESS CREDIT, INC.               OUR FOOD PRODUCTS GROUP, INC.

By /s/ Michelle Salisbury                       By /s/ Julie Tedesco
  -------------------------------                 ------------------------------
  Michelle Salisbury                              Julie Tedesco
  Its Vice President                              Its Chief Financial Officer

<PAGE>

              Table of Exhibits and Schedules

      Exhibit A                       Form of Revolving Note

      Exhibit B                       Form of Term Note

      Exhibit C                       Compliance Certificate

      Exhibit D                       Premises

                    ------------------

      [SCHEDULE 2.13                 SOURCES AND USES OF FUNDS]

      Schedule 5.1                   Trade Names,  Chief Executive Office,
                                     Principal Place of Business, and Locations
                                     of Collateral

      Schedule 5.4                   Subsidiaries

      Schedule 5.6                   Litigation

      Schedule 7.1                   Permitted Liens

      Schedule 7.2                   Permitted Indebtedness and Guaranties

                                       54
<PAGE>

                                      Exhibit A to Credit and Security Agreement

                                 REVOLVING NOTE

$2,000,000.00                                             Minneapolis, Minnesota
                                                                    May 31, 2000

          For value received,  the undersigned,  OUR FOOD PRODUCTS GROUP,  INC.,
f/k/a Hamlin Food Products Group,  Inc., a Texas  corporation (the  "Borrower"),
hereby  promises  to pay on the  Termination  Date  under the  Credit  Agreement
(defined below), to the order of WELLS FARGO BUSINESS CREDIT,  INC., a Minnesota
corporation (the "Lender"), at its main office in Minneapolis,  Minnesota, or at
any other place designated at any time by the holder hereof,  in lawful money of
the United States of America and in immediately  available  funds, the principal
sum of Two Million and 00/100 Dollars ($2,000,000.00) or, if less, the aggregate
unpaid  principal  amount of all  Revolving  Advances  made by the Lender to the
Borrower under the Credit  Agreement  (defined  below) together with interest on
the principal amount hereunder  remaining unpaid from time to time,  computed on
the basis of the actual number of days elapsed and a 360-day year, from the date
hereof  until  this  Note is fully  paid at the rate from time to time in effect
under the Credit and Security  Agreement of even date  herewith (as the same may
hereafter be amended,  supplemented  or restated from time to time,  the "Credit
Agreement") by and between the Lender and the Borrower. The principal hereof and
interest  accruing  thereon  shall be due and  payable as provided in the Credit
Agreement.  This  Note  may be  prepaid  only  in  accordance  with  the  Credit
Agreement.

          This Note is issued pursuant, and is subject, to the Credit Agreement,
which provides,  among other things, for acceleration  hereof.  This Note is the
Revolving Note referred to in the Credit Agreement.  This Note is secured, among
other things,  pursuant to the Credit  Agreement  and the Security  Documents as
therein  defined,  and may now or  hereafter  be  secured  by one or more  other
security agreements, mortgages, deeds of trust, assignments or other instruments
or agreements.

          The Borrower  hereby agrees to pay all costs of collection,  including
attorneys'  fees and legal expenses in the event this Note is not paid when due,
whether or not legal proceedings are commenced.

          Presentment  or other  demand  for  payment,  notice of  dishonor  and
protest are expressly waived.
                                                 OUR FOOD PRODUCTS GROUP, INC.

                                                 By
                                                    ----------------------------
                                                    ----------------------------
                                                            Its President

                                       55
<PAGE>

                                    Exhibit B-1 to Credit and Security Agreement

                               EQUIPMENT TERM NOTE

$110,000.00                                               Minneapolis, Minnesota
                                                                    May 31, 2000

          For value received,  the undersigned,  OUR FOOD PRODUCTS GROUP,  INC.,
f/k/a Hamlin Food Products Group,  Inc., a Texas  corporation (the  "Borrower"),
hereby  promises  to pay on the  Termination  Date  under the  Credit  Agreement
(defined below), to the order of WELLS FARGO BUSINESS CREDIT,  INC., a Minnesota
corporation (the "Lender"), at its main office in Minneapolis,  Minnesota, or at
any other place designated at any time by the holder hereof,  in lawful money of
the United States of America and in immediately  available  funds, the principal
sum of One Hundred Ten Thousand and 00/100  Dollars  ($110,000.00)  or, if less,
the aggregate unpaid principal amount of all Term Advances made by the Lender to
the Borrower under the Credit  Agreement  (defined below) together with interest
on the principal amount hereunder  remaining unpaid from time to time,  computed
on the basis of the actual number of days elapsed and a 360-day  year,  from the
date  hereof  until  this  Note is fully  paid at the rate  from time to time in
effect  under the Credit and Security  Agreement  of even date  herewith (as the
same may hereafter be amended,  supplemented  or restated from time to time, the
"Credit  Agreement")  by and between the Lender and the Borrower.  The principal
hereof and interest accruing thereon shall be due and payable as provided in the
Credit  Agreement.  This Note may be prepaid only in accordance  with the Credit
Agreement.

          This Note is issued pursuant, and is subject, to the Credit Agreement,
which provides,  among other things, for acceleration  hereof.  This Note is the
Equipment Term Note referred to in the Credit  Agreement.  This Note is secured,
among other things,  pursuant to the Credit Agreement and the Security Documents
as therein  defined,  and may now or  hereafter  be secured by one or more other
security agreements, mortgages, deeds of trust, assignments or other instruments
or agreements.

          The Borrower  hereby agrees to pay all costs of collection,  including
attorneys'  fees and legal expenses in the event this Note is not paid when due,
whether or not legal proceedings are commenced.

          Presentment  or other  demand  for  payment,  notice of  dishonor  and
protest are expressly waived.

                                                OUR FOOD PRODUCTS GROUP, INC.

                                                By
                                                  -----------------------------

                                                  -----------------------------
                                                           Its President

                                       56

<PAGE>

                                    Exhibit B-2 to Credit and Security Agreement

                              REAL ESTATE TERM NOTE

$1,223,000.00                                             Minneapolis, Minnesota
                                                                    May 31, 2000

          For value received,  the undersigned,  OUR FOOD PRODUCTS GROUP,  INC.,
f/k/a Hamlin Food Products Group,  Inc., a Texas  corporation (the  "Borrower"),
hereby  promises  to pay on the  Termination  Date  under the  Credit  Agreement
(defined below), to the order of WELLS FARGO BUSINESS CREDIT,  INC., a Minnesota
corporation (the "Lender"), at its main office in Minneapolis,  Minnesota, or at
any other place designated at any time by the holder hereof,  in lawful money of
the United States of America and in immediately  available  funds, the principal
sum  of One  Million  Two  Hundred  Twenty-three  Thousand  and  00/100  Dollars
($1,223,000.00)  or, if less, the aggregate  unpaid principal amount of all Term
Advances made by the Lender to the Borrower under the Credit Agreement  (defined
below) together with interest on the principal amount hereunder remaining unpaid
from time to time,  computed on the basis of the actual  number of days  elapsed
and a 360-day  year,  from the date hereof  until this Note is fully paid at the
rate from time to time in effect under the Credit and Security Agreement of even
date  herewith (as the same may hereafter be amended,  supplemented  or restated
from time to time,  the  "Credit  Agreement")  by and between the Lender and the
Borrower.  The principal  hereof and interest  accruing thereon shall be due and
payable as provided in the Credit  Agreement.  This Note may be prepaid  only in
accordance with the Credit Agreement.

          This Note is issued pursuant, and is subject, to the Credit Agreement,
which provides,  among other things, for acceleration  hereof.  This Note is the
Term Note referred to in the Credit Agreement. This Note is secured, among other
things,  pursuant to the Credit Agreement and the Security  Documents as therein
defined,  and may now or  hereafter  be secured  by one or more  other  security
agreements,  mortgages,  deeds of trust,  assignments  or other  instruments  or
agreements.

          The Borrower  hereby agrees to pay all costs of collection,  including
attorneys'  fees and legal expenses in the event this Note is not paid when due,
whether or not legal proceedings are commenced.

          Presentment  or other  demand  for  payment,  notice of  dishonor  and
protest are expressly waived.

                                                OUR FOOD PRODUCTS GROUP, INC.

                                                By
                                                  ------------------------------
                                                  ------------------------------
                                                          Its President

                                      57

<PAGE>

                                      Exhibit C to Credit and Security Agreement

                             COMPLIANCE CERTIFICATE

To:       Michelle Salisbury
          Wells Fargo Business Credit, Inc.
Date:     __________________, 200___

Subject:  Our Food Products Group, Inc.
          Financial Statements

          In accordance  with our Credit and Security  Agreement dated as of May
31, 2000 (the "Credit Agreement"),  attached are the financial statements of Our
Food Products Group, Inc. (the "Borrower") as of and for ________________,  200_
(the  "Reporting  Date") and the  year-to-date  period then ended (the  "Current
Financials").  All terms used in this certificate have the meanings given in the
Credit Agreement.

          I certify that the Current Financials have been prepared in accordance
with GAAP,  subject to  year-end  audit  adjustments,  and  fairly  present  the
Borrower's  financial condition and the results of its operations as of the date
thereof.

              EVENTS OF DEFAULT. (Check one):
              -----------------

         o    The undersigned does not have knowledge of the occurrence of a
              Default or Event of Default under the Credit Agreement.

         o    The  undersigned  has knowledge of the occurrence of a Default
              or Event of Default  under the Credit  Agreement  and attached
              hereto is a statement of the facts with respect to thereto.

              I hereby certify to the Lender as follows:

         o    The  Reporting  Date  does  not  mark  the  end  of one of the
              Borrower's  fiscal  quarters,   hence  I  am  completing  only
              paragraphs __ and __ below.

         o    The  Reporting  Date  marks  the end of one of the  Borrower's
              fiscal  quarters,  hence I am completing all paragraphs  below
              except paragraphs __ and __.

         o    The  Reporting  Date  marks the end of the  Borrower's  fiscal
              year, hence I am completing all paragraphs below.

              FINANCIAL COVENANTS. I further hereby certify as follows:

                                      58
<PAGE>

          1. MINIMUM DEBT SERVICE  COVERAGE  RATIO.  Pursuant to Section 6.14 of
the Credit  Agreement,  as of the Reporting  Date, the  Borrower's  Debt Service
Coverage  Ratio was  _____ to 1.00  which o  satisfies  o does not  satisfy  the
requirement that such ratio be no less than 1.10 to 1.00 on the Reporting Date.

          2.  MAXIMUM  MONTHLY NET LOSS.  Pursuant to Section 6.19 of the Credit
Agreement,  as of the Reporting Date, the Borrower's  monthly Net Income (or net
loss reflected as a negative  number) was $________ which o satisfies o does not
satisfy the requirement that such amount be greater than the maximum net loss of
($50,000) (or ($100,000) for the month of January) on the Reporting Date .

          3.  MINIMUM  QUARTERLY  NET INCOME.  Pursuant  to Section  6.20 of the
Credit  Agreement,  the  Borrower's  quarterly net income for the fiscal quarter
ending on the  Reporting  Date,  was  $________,  which o  satisfies  o does not
satisfy  the  requirement  that such  amount be not less than $0 for such fiscal
quarter (or up to a maximum net loss of ($150,000)  for the first fiscal quarter
ending March 31st).

          4. MINIMUM  ANNUAL NET INCOME.  Pursuant to Section 6.21 of the Credit
Agreement, the Borrower's Net Income for the fiscal year ending on the Reporting
Date, was  $____________,  which o satisfies o does not satisfy the  requirement
that such amount be not less than $_____________ for such fiscal year end as set
forth in table below:

                 FYE                  MINIMUM NET INCOME
                 ---                  ------------------
               12/31/00                     $50,000
               12/31/01                    $150,000
               12/31/02                    $200,000

          5.  CAPITAL  EXPENDITURES.  Pursuant  to  Section  7.10 of the  Credit
Agreement,  for the  year-to-date  period  ending  on the  Reporting  Date,  the
Borrower has expended or  contracted  to expend  during the  _____________  year
ended ______________,  200___, for Capital Expenditures,  $__________________ in
the  aggregate  and at  most  $______________  in any one  transaction,  which o
satisfies o does not satisfy the requirement  that such  expenditures not exceed
$100,000 in the aggregate (or $125,000 for fiscal year 2000) and $20,000 for any
one transaction during such year.

          6. SALARIES.  As of the Reporting  Date, the Borrower o is o is not in
compliance with Section 7.17 of the Credit Agreement concerning salaries.

          Attached  hereto  are all  relevant  facts  in  reasonable  detail  to
evidence,  and the  computations of the financial  covenants  referred to above.
These computations were made in accordance with GAAP.

                                               OUR FOOD PRODUCTS GROUP, INC.

                                               By
                                                  ------------------------------
                                                       Julie Tedesco
                                                   Its Chief Financial Officer

                                       59
<PAGE>

                                      Exhibit D to Credit and Security Agreement

                                    PREMISES

          The  Premises  referred to in the Credit and  Security  Agreement  are
legally described as follows:

                          [To be completed by Borrower]

                                       60
<PAGE>

                                  Schedule 2.13 to Credit and Security Agreement

                            Sources and Uses of Funds

          Wells Fargo loan  proceeds  will be used to pay off Our Food Products
Group, Inc's revolver, equipment, and real estate loans with Bank One.

                                       61
<PAGE>

                                   Schedule 5.1 to Credit and Security Agreement

              Trade Names, Chief Executive Office, Principal Place
                    of Business, and Locations of Collateral

                                   TRADE NAMES

                          [To be completed by Borrower]

               CHIEF EXECUTIVE OFFICE/PRINCIPAL PLACE OF BUSINESS

        Our Food Products Group, Inc.
        #1 Chisholm Trail
        Buda, Texas 78610

                     OTHER INVENTORY AND EQUIPMENT LOCATIONS

        Glass and lid inventory located at:

        Berlin Packaging
        4030 Binz Engleman, Suite 306
        San Antonio, Texas 78219

                                       62
<PAGE>

                                  Schedule 5.4  to Credit and Security Agreement

                                  SUBSIDIARIES

                                      None

                                       63

<PAGE>

                                  Schedule 5.6  to Credit and Security Agreement

                                   LITIGATION

                           --------------------------

                                       64
<PAGE>

                                   Schedule 7.1 to Credit and Security Agreement

                              PERMITTED LIENS

 CREDITOR      COLLATERAL       JURISDICTION      FILING DATE        FILING NO.
 --------      ----------       ------------      -----------        ----------

                          [to be completed by Borrower]

                                       65
<PAGE>

                                   Schedule 7.2 to Credit and Security Agreement

                      PERMITTED INDEBTEDNESS AND GUARANTIES

                                  INDEBTEDNESS

CREDITOR      PRINCIPAL AMOUNT   MATURITY DATE    MONTHLY PAYMENT     COLLATERAL

                          [to be completed by Borrower]

                                   GUARANTIES

                        AMOUNT AND DESCRIPTION OF
 PRIMARY OBLIGOR         OBLIGATION GUARANTEED          BENEFICIARY OF GUARANTY
 ---------------       -------------------------        -----------------------

                          [To be completed by Borrower]

                                       66

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