Document:

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[LOGO]                                                     Exhibit 10.14
 BDC

                                 LOAN AGREEMENT

THIS AGREEMENT dated November 5th, 1997

BETWEEN:

   PRIME FOODS PROCESSING INC., a Company duly incorporated under
   the laws of the Province of Ontario, of Waterloo, Ontario,

                                                               (the "Company 1")

AND:

                                        , a Company duly incorporated under the
   laws of the Province of Ontario, of              ,Ontario,

                                                               (the "Company 2")

AND:

                                , Business Person, of
                         , Ontario,

                                                            (the "Individual 1")

AND:

                                , Business Person, of
                         , Ontario,

                                                            (the "individual 2")

  (the above described are individually and collectively called the "Borrower")

                                                               OF THE FIRST PART

AND:

      BUSINESS DEVELOPMENT BANK OF CANADA, incorporated by Special Act of the
      Parliament of Canada and having its Head Office in the City of Montreal,
      in the Province of Quebec, with a branch at Kitchener, Ontario.

                   ("BDC")                                    OF THE SECOND PART

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                                    CONTENTS

1. Interpretation          6.  Other Payment Provisions  11. Financial Reporting
2. The Loan                7.  Security                  12. inspections
3. Repayment Terms         8.  Business and Assets       13. Default
4. Other Terms             9.  Environment               14. Remedies and Powers
5. Prepayment              10. Insurance                 15. General

The Borrower covenants and agrees with BDC as follows:

1.    INTERPRETATION

1.01  Definitions

      "Application for Financing" means the form of application for the Loan
      executed by the Borrower and dated prior to the Commitment Letter.

      "Affiliate" means an affiliate as defined by the Business Corporations Act
      (Ontario) as amended from time to time.

      "BDC's Operational Rate" means the annual rate of interest announced by
      BDC from time to time as its operational rate then in effect for
      determining the floating interest rates on Canadian dollar commercial and
      industrial loans.

      "Base Rate" means the annual rate of interest announced by BDC from time
      to time as its base rate applicable to each of BDC's Fixed Interest Rate
      Plans then in effect for determining the fixed interest rates on Canadian
      dollar commercial and industrial loans.

      "Commitment Letter" means the letter of offer of the Loan dated October
      24, 1997 and subsequent modifications.

      "Corresponding Fixed Interest Rate Plan" means in relation to the
      prepayment of a fixed interest rate loan, the Fixed Interest Rate Plan
      equal to the number of years, rounded to the nearest year (minimum of one
      year), from the date the prepayment is received to the next scheduled
      Interest Adjustment Date (or the Maturity Date if earlier).

      "Fixed Interest Rate Plan" means at any time a fixed interest rate plan
      offered by BDC to its customers generally at such time.

      "Floating Interest Rate Plan" means the floating interest rate plan set
      out herein.

      "Interest Adjustment Date" means the dates established in this agreement
      for the adjustment or further adjustment of the interest rate.

      "Loan" means the loan offered in the Commitment Letter in the amount of
      $550,000.00.

      "Loan Rate" means the floating interest rate applicable to this Loan which
      is an annual rate of 1.00 % above BDC's Operational Rate calculated as set
      out herein.

      "Maturity Date" is June 23, 2012 on which date any monies then unpaid will
      be due.

      "Month of Loan Authorization" is October, 1997.

      "Permitted Encumbrance" means financial or other charges permitted to rank
      in priority to the Security under the terms of the Commitment Letter.

      "Security" means the security described in Schedule "A" attached and all
      additions, replacements or modifications thereto.

      "Subsidiary" means a subsidiary as defined by the Business Corporations
      Act (Ontario) as amended from time to time.

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      "Underlying Conditions" means those referred to in the Commitment Letter
      as "Underlying Conditions".

1.02  GOVERNING LAW

      This agreement and the Security and the rights and obligations of the
      parties under this agreement and the Security will be governed by and
      construed and interpreted in accordance with the laws of Ontario.

2.    THE LOAN

      BDC has agreed to lend to the Borrower and the Borrower has agreed to
      borrow from BDC, the Loan pursuant to the Commitment Letter and the
      Borrower has agreed to give the Security to secure the Loan.

3.    REPAYMENT TERMS

      The Borrower will repay to BDC at its head office in the City of Montreal,
      in the Province of Quebec, or at such other place in Canada as BDC may in
      writing from time to time direct, the Loan with interest thereon as
      follows:

      PRINCIPAL AMOUNT $ 550,000.00

      INTEREST RATE

      The interest rate shall vary automatically without notice to the Borrower
      upon change in BDC's Operational Rate. At the date of the Commitment
      Letter, BDC's Operational Rate was 7.250% per annum, the Loan Rate was
      1.00% per annum above BDC's Operational Rate and the interest rate was
      therefore 8.250% per annum.

      FIRST PAYMENT DATE

      a)    INTEREST

            The 23rd day of the month following the first disbursement of
            principal.

      b)    PRINCIPAL

      AMOUNT OF EACH PERIODIC PAYMENT

      a)    INTEREST

            Interest is calculated daily not in advance on the principal
            outstanding from time to time commencing on the date of the first
            disbursement of principal. Interest is paid monthly on the 23rd day
            of each month commencing as provided above and continuing until all
            amounts required to be paid under the Loan are paid. Where the
            parties have agreed, BDC may retain a portion of the Principal
            Amount and deduct, from time to time, from such portion regular
            payments of interest as provided for herein.

      b)    PRINCIPAL

            1  payment of $ 2,800.00       commencing March 23, 1998,followed by
          171  payments of $ 3,200.00 each commencing April 23, 1998,*
               *                           *                         *
               *                           *                         *

      with the balance of the principal and any other monies owing to be paid on
      June 23, 2012, the Maturity date.

4.    OTHER TERMS

4.01  Switching Plans

      The Borrower may, at any time, elect to change to any Fixed Interest Rate
      Plan offered by BDC at the

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      time of such election upon giving BDC 30 days notice of such election and
      upon payment of BDC's standard switching fee then in effect and upon other
      terms and conditions agreed upon with BDC at the time.

4.02  Interest Adjustments

      Any underlying conditions in the Commitment Letter allowing other
      adjustments by BDC to the Loan Rate, if any, apply to the Loan.

5.    PREPAYMENT

5.01  Fixed Interest Rate Plan

      If the Borrower is on a Fixed Interest Rate Plan, the following provisions
      will apply:

      The Borrower shall have the privilege of prepaying at any time, without
      notice, the whole or any part of the outstanding principal upon payment of
      the accrued interest, and any other sums due at the date of the prepayment
      provided that an indemnity is paid to BDC which is equal to:

      a)    three months' interest on the principal prepaid, such interest to be
            computed in the same manner and at the same rate as a monthly
            instalment of interest herein would, at time of prepayment, be
            calculated, and

      b)    an interest differential charge which is only applicable if, on the
            date prepayment is received, BDC's Base Rate for the Corresponding
            Fixed Interest Rate Plan is lower than the Base Rate in effect when
            the Borrower either entered or renewed the Fixed Interest Rate Plan
            being prepaid, whichever is the most recent. The interest
            differential is the difference between these two rates. The interest
            differential is multiplied by the principal that would have been
            outstanding at the 23rd of each month until the next Interest
            Adjustment Date (or the maturity of the principal if earlier). Then
            the present value of the amount or amounts obtained by such
            multiplication is then calculated by discounting such amount or
            amounts using the Base Rate for the Corresponding Fixed Interest
            Rate Plan as the discount factor. The total of the present values is
            the interest differential charge.

      PROVIDED THAT the said indemnity shall not exceed the amount chargeable
      upon prepayment according to the terms of the Interest Act of Canada.

      In the case of partial prepayment, the interest differential charge will
      be reduced in the same proportion as the amount prepaid bears to the
      principal outstanding at the time prepayment is received.

5.02  Floating Interest Rate Plan

      If the Borrower is on the Floating Interest Rate Plan, the Borrower shall
      have the privilege of prepaying at any time, without notice, the whole or
      any part of the outstanding principal upon payment of the accrued
      interest, and any other sums due at the date of prepayment provided that
      an indemnity is paid to BDC which is equal to three months' interest, at
      the Loan Rate, on the amount prepaid.

5.03  Annual Privilege

      In addition to the foregoing prepayment provisions, the Borrower shall
      have the privilege of prepaying annually, on the anniversary of the 24th
      day of the Month of Loan Authorization, an amount not exceeding 15%
      (non-cumulative from one year to another) of the outstanding principal
      without indemnity.

5.04  General

      Partial prepayments shall be applied regressively on the then last
      maturing instalments of principal.

6.    OTHER PAYMENT PROVISIONS

6.01  Payment Date

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      Although it is stated herein that payments of principal, interest and
      certain expenses and fees are to be made on the 23rd day of the month, it
      is agreed that BDC has the right, exercisable at any time, to designate
      any other day of the month for payments.

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6.02  Interest Calculation

      Interest is calculated as provided in this Agreement as well after as
      before maturity, both before and after default and both before and after
      judgement.

6.03  Arrears of Interest

      Arrears of interest bear interest at the rate from time to time chargeable
      on principal calculated and paid at the same times and in the same manner
      as interest on principal and is secured by the Security.

6.04  Expenses and Fees

      The Borrower covenants to pay on demand:

      a)    all legal fees and disbursements on a solicitor and own client basis
            in respect of the Loan, the preparation, issue and registration of
            the Security and all legal, receiver's, bailiff's or other fees and
            disbursements in respect of the enforcement or preservation of BDC's
            rights and remedies under the Loan, or the Security. In addition,
            the Borrower covenants to pay the costs of any appraiser and any
            environmental investigator engaged by BDC to effect any inspection,
            appraisal, investigation or environmental audit of the secured
            assets and the cost of any environmental rehabilitation, removal, or
            repair necessary to protect, preserve or remediate the secured
            assets, including any cost, fine or penalty BDC is obliged to incur
            by reason of any statute, order or direction by competent authority.
            The Borrower's obligations to indemnify BDC under this paragraph
            continue before and after default and notwithstanding repayment of
            the Loan or discharge of any part or all of the Security;

      b)    an allowance for the time, work and expense of BDC or of any agent,
            solicitor or servant of BDC for any purpose herein provided for and
            whether such time, work or expense is advanced or incurred with the
            consent of the Borrower or otherwise; and

      c)    all fees from time to time chargeable by BDC arising out of any term
            of the Commitment Letter or any of the Security including
            inspection, administration, discharge and returned cheque handling
            fees.

6.05  Interest on Unpaid Amounts

      Any amounts required to be paid herein, if not paid when due, will bear
      interest until paid in the same manner as arrears of interest and are
      secured by the Security.

7.    SECURITY

7.01  Form of Security

      All Security shall be in form and substance satisfactory to BDC and its
      counsel and shall be in form sufficient for registration or filing under
      all applicable laws.

7.02  Further Assurances

      The Borrower shall:

      a)    at its sole cost, execute and deliver or cause to be executed and
            delivered to BDC such further deeds or other instruments of
            conveyance, assignment, transfer, mortgage, pledge, charge,
            guarantee or acknowledgement or such additional instruments or other
            assurances as BDC may from time to time reasonably require to carry
            out the intent of this agreement;

      b)    notify BDC of any registrations of patents, trade marks, trade
            names, copyrights, other intellectual property or any rights
            therein, under the laws of Canada or under the laws of any other
            jurisdiction forthwith after the making of any such registration.

7.03  Multiple Security

      Notwithstanding anything else contained in any part of the Security, each
      part is given as additional, concurrent and collateral security to the
      remainder of the Security, and BDC shall not be obliged to

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      realize or enforce its rights under any part of the Security before
      enforcing or realizing on the remainder the Security, but may enforce or
      realize on any part of the Security as it sees fit, in whichever order it
      sees fit, and may abstain from enforcing any part of the Security as it
      sees fit, any rule of law or equity to the contrary notwithstanding.

8.    BUSINESS AND ASSETS

8.01  Title to Assets

      The Borrower represents and warrants the Borrower's good and marketable
      title to its assets that are subject to the Security, in each case free
      and clear of any encumbrance other than Permitted Encumbrances.

8.02  Material Contracts

      The Borrower represents and warrants that all material contracts to which
      the Borrower is a party or which affect the Borrower's business or its
      assets that are subject to the Security are not in default and will remain
      in good standing.

8.03  Claims and Litigation

      The Borrower represents and warrants that there are no actions, suits, or
      claims pending or threatened against the Borrower by any person or
      governmental authority which could, if an adverse decision is made, affect
      the ability of the Borrower to perform its obligations under this
      agreement.

8.04  Conduct of Business

      The Borrower will agree to carry on its business in a proper business-like
      manner, will keep proper books of account and records covering all it
      business and affairs, will maintain in good standing all necessary
      licences, permits, approvals and consents and will comply with all laws,
      ordinances and regulations applicable to it.

8.05  Reorganizations and Business Combinations

      The Borrower agrees not to:

      a)    amalgamate, merge, consolidate or enter into any business
            combination with any other person including without limitation, a
            joint venture or partnership;

      b)    make any investment or permit any of its Subsidiaries to make any
            investment in an Affiliate.

8.06  Corporate Undertakings

      Where the Borrower is a corporation, it shall not, without BDC's prior
      written consent:

      a)    issue, purchase or redeem its shares;

      b)    permit any of its shareholders to sell, transfer or dispose of its
            shares;

      c)    declare or pay any dividends on any of its issued shares;

      d)    amend its capital structure.

8.07  Maintenance

      The Borrower will keep and maintain all of its assets used in the conduct
      of its business in good order, repair and condition (reasonable wear and
      tear excepted).

8.08  Security and Liens

      The Borrower will not give, grant, assume or permit to exist, any
      encumbrance on any of its assets that are subject to the Security other
      than Permitted Encumbrances.

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8.09  Nature of Business

      The Borrower will not without the prior consent of BDC:

      a)    engage in any business or permit the use of its premises whether by
            a tenant or other person for any purpose that would constitute an
            ineligible activity under the Commitment Letter;

      b)    change its name or the location of the assets that are subject to
            the Security;

      c)    change the nature or type of its business;

      d)    sell, transfer or dispose of the business or the property that are
            subject to the Security except in the ordinary course of business;

      e)    extend loans or make investments or provide guarantees on account of
            any third party.

9.    ENVIRONMENT

      The Borrower represents and agrees that

      a)    it operates and will continue to operate in conformity with all
            environmental laws and will ensure its staff is trained as required
            for that purpose;

      b)    it has an environmental emergency response plan and all officers and
            employees are familiar with that plan and their duties under it;

      c)    it possesses and will maintain all environmental licences, permits
            and other governmental approvals as may be necessary for the conduct
            of its business;

      d)    its assets are and will remain free of environmental damage or
            contamination;

      e)    there has been no complaint, prosecution, investigation or
            proceeding, environmental or otherwise, with respect to the
            Borrowers business or assets;

      f)    it will advise BDC immediately upon becoming aware of any
            environmental problem relating to its business or its assets that
            are subject to the Security;

      g)    it will provide BDC with copies of all communications with
            environmental officials and all environmental studies or assessments
            prepared for the Borrower and it consents to BDC contacting and
            making enquiries of environmental officials or assessors;

      h)    it will not install on or under any land mortgaged to BDC storage
            tanks for petroleum products or any hazardous substance without
            BDC's prior written consent and only upon full compliance with the
            BDC's requirements and local ordinances or regulations.

10.   INSURANCE

      During the continuance of this Loan, the Borrower shall insure and keep
      insured all property provided as security hereunder to their full
      insurable value against loss or damage, however caused. The insurance
      policy(ies) shall record BDC as loss payee and contain the standard
      mortgage clause as approved by the Insurance Bureau of Canada, or a
      mortgage endorsement or a Breach of Warranty Clause, as appropriate. The
      Borrower shall provide evidence of the insurance coverage and pertinent
      clauses to BDC, if and when requested.

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      If the Borrower does not maintain insurance as required, BDC may purchase
      insurance to protect its own interest and the premiums shall be payable by
      the Borrower.

      The Borrower shall notify BDC of the occurrence of any damage or loss and
      furnish any necessary proof to enable BDC to obtain payment of the
      insurance money.

      Receipt of insurance proceeds by BDC does not constitute a payment on the
      Loan unless BDC chooses to apply the funds to the Loan and any release of
      insurance proceeds not so applied does not constitute a readvance under
      the Loan.

      If any insurance proceeds become payable, BDC may, in its absolute
      discretion, apply such proceeds to the Loan and such other obligations of
      the Borrower to it in whatever order or manner it sees fit and may release
      such proceeds or part of them.

      The Borrower hereby authorizes and directs the insurer under any policy of
      insurance called for above to include the name of BDC as a loss payee in
      any cheque or draft which may be issued with respect to a claim settlement
      under such insurance and the production by BDC of a copy of this agreement
      shall be the insurer's full and complete authority for so doing.

11.   FINANCIAL REPORTING

      a)    the Borrower shall deliver to BDC its annual financial statements
            within 90 days of fiscal year end and interim financial statements
            within 30 days after the end of statement date;

      b)    the Borrower will not change its existing fiscal year end without
            the consent of BDC.

12.   INSPECTIONS

      BDC may, by its officers or authorized agents, enter upon the Borrower's
      premises at any time, from time to time, to inspect or to appraise the
      Borrowers assets that are subject to the Security and to inspect the books
      and records of the Borrower and make extracts therefrom.

13.   DEFAULT

13.01 Events of Default

      The Borrower shall be in default under this agreement in the event of a
      default pursuant to any of the Security, or in any of the following
      events:

      a)    the Borrower makes default in the payment of the Loan or any money
            secured by the Security, at the time and in the amounts provided; or

      b)    the Borrower is in breach of any term, condition, obligation or
            covenant to BDC, or any representation or warranty to BDC is untrue,
            whether or not contained in the Security, the Commitment Letter or
            this agreement; or

      c)    the Borrower declares itself to be insolvent or admits in writing
            its inability to pay its debts generally as they become due, or
            makes an assignment for the benefit of its creditors, is declared
            bankrupt, makes a proposal or otherwise takes advantage of
            provisions for relief under the Bankruptcy and Insolvency Act, the
            Companies Creditors' Arrangement Act or similar legislation in any
            jurisdiction, or makes an authorized assignment; or

      d)    a receiver, receiver and manager or receiver manager of all or any
            part of the Borrower's assets is appointed: or

      e)    an order is made or an effective resolution is passed for winding up
            the Borrower; or

      f)    the Borrower ceases or threatens to cease to carry on all or a
            substantial part of its business: or

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      g)    an order of execution against the Borrowers assets or any part
            thereof remains unsatisfied for a period of 10 days; or

      h)    BDC in good faith believes and has commercially reasonable grounds
            to believe that the prospect of payment or performance of any of the
            Borrower's obligations is impaired: or that the property provided as
            security hereunder is in danger of loss, damage, misuse, seizure or
            confiscation, or

      i)    the lessor under any lease to the Borrower of any real or personal
            property takes any steps to or threatens to terminate such lease, or
            otherwise exercise any of its remedies under such lease as a result
            of any default thereunder by the Borrower; or

      j)    the Borrower causes or allows hazardous materials to be brought upon
            any lands or premises occupied by the Borrower or incorporated into
            any of its assets without BDC's prior consent, or if the Borrower
            causes, permits, or fails to remedy any environmental contamination
            upon, in or under any of its lands or assets, or fails to comply
            with any abatement or remediation order given by a responsible
            authority; or

      k)    the Borrower is in default under any loan agreement or security
            given by the Borrower to BDC or to any other lender in relation to
            any indebtedness other than the Loan or the Borrower accelerates or
            permits the acceleration of the maturity of any material
            indebtedness to any creditor other than BDC.

      l)    if any representation or statement made or furnished to BDC by the
            Borrower or on the Borrower's behalf is false or misleading in any
            material respect; or

      m)    if any of the events described in this default section occurs with
            respect to any guarantor of the Loan.

      Default under this agreement or any of the Security constitutes default
      under all of the Security and this agreement.

      Any default or non-compliance with any terms of the Commitment Letter not
      at variance with this agreement shall constitute an event of default under
      this agreement.

13.02 Consequences of Default

      In the event of default hereunder, the Loan and any other money secured by
      the Security shall, at the option of BDC, immediately become due and
      payable and the Security enforceable.

14.   REMEDIES AND POWERS

14.01 Obligation to Advance

      Neither the execution and delivery of this agreement or the Security nor
      the advance of money thereunder binds BDC to make any advance or further
      advance of the Loan.

14.02 Dealings by BDC

      BDC may grant extensions of time and other indulgences, take and give up
      securities including the Security, accept compositions, grant releases and
      discharges and otherwise deal with the Borrower, debtors of the Borrower,
      sureties and others and with the Security or any other security from time
      to time given to BDC by the Borrower or any other person all as BDC may
      see fit without prejudice to any of the Borrower's indebtedness,
      liabilities and obligations to BDC or BDC's right to hold and realize on
      any security. The Borrower further agrees that it shall not be released
      nor shall its liability be in any way reduced by reason that BDC has done
      or concurred in the doing of anything whereby a surety would be released
      in whole or in part.

14.03 Remedies Cumulative

      BDC may in its sole discretion realize upon any security including the
      Security held by it in any order or concurrently whether such security is
      held by it at the date hereof or is provided at any time hereafter. No
      realization or exercise by BDC of any power or right hereunder or under
      any security shall in any way

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      prejudice any further realization or exercise until all obligations are
      fully satisfied. All rights and remedies of BDC under this agreement are
      cumulative and not in substitution for its rights under the Security or at
      law.

14.04 Waiver

      BDC may at any time waive any default which may have occurred. No such
      waiver shall extend to or affect any other default or BDC's rights or
      remedies in respect thereof.

14.05 Appropriation

      BDC may, after default, appropriate any moneys received by it from the
      Borrower or any other person, to payment of such of the obligations of the
      Borrower hereunder or under any other agreement between BDC and the
      Borrower as BDC in its sole discretion may see fit, and any such
      appropriations may be changed or varied from time to time.

14.06 Non-Merger

      Neither this agreement nor the Security shall operate so as to create any
      merger or discharge of any warranties, obligations, covenants or
      representations of the Borrower under the Application for Financing,
      Commitment Letter, any amendment to them, or other document delivered by
      or on behalf of the Borrower, all of which survive the execution and
      delivery of the Security, the perfection of the Security interests created
      thereby, and the advance of money by BDC.

      The taking of a judgement or judgements or any other action or dealing
      whatsoever by BDC in respect of any security from time to time given to
      BDC by the Borrower or any other person shall not operate as a merger or
      release of any of the Borrower's indebtedness, liabilities or obligations
      hereunder or in any way affect or prejudice the rights and remedies of BDC
      with respect to such indebtedness, liabilities and obligations.

15.   GENERAL

15.01 Conflicts with other Documents

      Except for the Application for Financing, the Commitment Letter, the
      Security and any other instrument delivered hereunder or pursuant hereto,
      this agreement constitutes the entire agreement between BDC and the
      Borrower with respect to the subject matter hereof.

      Except as hereinafter expressly provided, to the extent that any provision
      of the Application for Financing, the Commitment Letter or any of the
      Security or any other instrument delivered hereunder or pursuant hereto is
      inconsistent with or in conflict with the provisions of this agreement,
      the provisions of this agreement shall govern.

      Notwithstanding the foregoing, to the extent that any of the Underlying
      Conditions are inconsistent or in conflict with provisions of this
      agreement, the Underlying Conditions shall govern.

15.02 Limits on Interest, Royalties and Fees

      It is agreed that notwithstanding any agreement to the contrary, if at any
      time during the term on this Loan, the aggregate amount of interest,
      royalties, payment constituting the redemption price relating to any
      option for stock or other ownership units and fees paid or payable in
      connection with the advancing of this credit (collectively, the "Charges")
      would except for this Section, constitute an amount that might be
      considered as being the result of the application of an effective annual
      rate of interet prohibited under any law, then such Charges shall be
      reduced such that the Charges paid or payable at any such time be the
      result of the application of an effective annual rate of interet on the
      credit advanced equal to a rate that is one per cent (1%) per annum less
      than the minimum rate which would be prohibited under such law, the whole
      as calculated in accordance with generally accepted actuarial practices
      and principles. Any remaining excess that has been paid will be refunded
      by no later than the tenth (10th) business day following the date upon
      which the BDC, acting reasonably and in good faith, shall have determined
      that said amount is to be refunded.

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15.03 Notice

      Any demand or notice herein referred to may be effectively given by BDC by
      personal delivery thereof or by mailing such demand or notice by prepaid
      post to the Borrower at the address set out above, or at such other
      address as may be given in writing by the Borrower to BDC. Delivery by Fax
      transmission is deemed to be personal service and is deemed to be received
      on the next business day following transmission. Delivery by prepaid mail
      is deemed to be received three business days after mailing.

15.04 Severability

      Any provision in this agreement which is prohibited or unenforceable in
      any jurisdiction shall, as to such jurisdiction, be ineffective to the
      extent of such prohibition or unenforceability without invalidating the
      remaining provisions hereof or affecting the validity or enforceability of
      such provision in any other jurisdiction.

15.05 Time of the Essence

      Time is of the essence of this agreement.

15.06 Multiple Borrowers

      Whenever the term "Borrower" includes more than one party:

      a)    all covenants, liabilities, and obligations entered into by or
            imposed on the Borrower herein are deemed to be joint and several;

      b)    each of the parties constituting the Borrower is, as between them,
            in the position of principal debtor in respect of the Loan and all
            monies payable under the Security and notwithstanding any subsequent
            change in their position inter se or notice thereof for all purposes
            of this agreement remain in the position of principal debtor and BDC
            is not bound by or obliged to recognize any such change or notice.

15.07 No Assignment

      The Borrower may not assign any of its rights or obligations under this
      agreement, and no such purported assignment shall be effective, without
      the prior written consent of BDC, which consent may be arbitrarily
      withheld.

15.08 Discharges

      The Borrower shall pay a fee, to be fixed by BDC, for the preparation or
      execution of any full or partial release or discharge of any of the
      Security, any Borrower, or any guarantor of the Loan.

15.09 Preincorporation Advances

      In the event any of the Borrowers were not yet incorporated or did not
      have legal status at the time of execution of the Commitment Letter or at
      the time of any advance of principal under the Loan such Borrower ratifies
      and approves all such actions, confirms that such advance was applied for
      its benefit and assumes liability for such advance, such contract and any
      expenditure made or cost incurred by BDC hereunder.

15.10 Successors and Assigns

      This agreement shall enure to the benefit of and be binding on the parties
      hereto and their respective heirs, executors, successors and permitted
      assigns as the case may be.

Page 12
<PAGE>   13

15.11 Captions

      The division of this agreement into sections and the insertions of
      headings are for convenience of reference only and do not affect the
      interpretation of this agreement.

15.12 Interpretation

      Whenever in this agreement the singular or neuter pronoun is used the same
      shall be respectively construed as the plural, masculine or feminine where
      the context or the parties hereto require.

15.13 Counterparts

      This agreement may be executed in any number of counterparts and by
      different persons in separate counterparts, each of which when so executed
      shall be deemed to be an original and all of which taken together shall
      constitute one and the same agreement.

15.14 Receipt by the Borrower

      The Borrower acknowledges receipt of an executed copy of this agreement.

15.15 Schedules

      All schedules annexed hereto shall be incorporated into and form an
      integral part of this agreement

EXECUTION

The Borrower has executed this agreement personally or by its authorized
signatories as the case may be.

                EXECUTION DATE

Officer           Y    M   D                       Borrower(s) Signature(s)
Signature(s)
                                               PRIME FOODS PROCESSING INC.

                 97 / 11 / 05                  Per: /s/ James Guinchard    c/s
                                                   ------------------------
                                                   Name: James Guinchard
                                                   Title: President

                 __ / __ / __

_____________    __ / __ / __
WITNESS

_____________    __ / __ / __
WITNESS

Page 13
<PAGE>   14

                         SCHEDULE "A" TO LOAN AGREEMENT
                                     BETWEEN

                                   AS BORROWER
                                       AND
                       BUSINESS DEVELOPMENT BANK OF CANADA

                              DATED November, 1997

                                    SECURITY

1.    First Mortgage on 620 Colby Drive, Waterloo, Ontario.

2.    General Security Agreement executed by Prime Foods Processing Inc.

3.    Joint and Several Guarantee executed by James Guinchard and Michael Steele
      limited to $100,000.

4.    Guarantee of International Menu Solutions Inc.

5.    Assignment of Shareholders' Loans.

6.    Priorities Agreement.

Page 14<PAGE>   1
                                                              Exhibit 10.16
                      Business Development Bank of Canada
BDC             Banque de developpement du Canada

LOAN AGREEMENT
================================================================================

THIS AGREEMENT dated ________ 1998.

BETWEEN:

       TRANSCONTINENTAL GOURMET FOODS INC.

       (the "Borrower")

                                                               OF THE FIRST PART

AND:
       BUSINESS DEVELOPMENT BANK OF CANADA, with a branch at
       3660 Hurontario, 8th Floor, Mississauga, Ontario, L5B 3C4

       (the "Bank")

                                                              OF THE SECOND PART

                                     Page 1
Loan Agreement - FLOATING
Rev. December, 1997
<PAGE>   2

                                    CONTENTS

1. Interpretation     6.  Other Payment Provisions   11.    Financial Reporting
2. The Loan           7.  Security                   12.    Inspections
3. Repayment Terms    8.  Business and Assets        13.    Default
4. Other Terms        9.  Environment                14.    Remedies and Powers
5. Prepayment        10.  Insurance                  15.    General

The Borrower covenants and agrees with the Bank as follows:

1.    INTERPRETATION

1.01  Definitions

      "Application for Financing" means the form of application for the Loan
      executed by the Borrower and dated prior to the Commitment Letter.

      "Bank's Floating Base Rate" means the annual rate of interest announced by
      the Bank from time to time as its operational rate then in effect for
      determining the floating interest rates on Canadian dollar commercial and
      industrial loans.

      "Base Rate" means the annual rate of interest announced by the Bank from
      time to time as its base rate applicable to each of the Bank's Fixed
      Interest Rate Plans then in effect for determining the fixed interest
      rates on Canadian dollar commercial and industrial loans.

      "Commitment Letter" means the letter of offer of the Loan dated March 12,
      1998 and subsequent modifications.

      "Corresponding Fixed Interest Rate Plan" means in relation to the
      prepayment of a fixed interest rate loan, the Fixed Interest Rate Plan
      then being offered by the Bank to its customers equal to the number of
      years, rounded to the nearest year (minimum of one year), from the date
      the prepayment is received to the next scheduled Interest Adjustment Date
      (or the Maturity Date if earlier).

      "Fixed Interest Rate Plan" means at any time a fixed interest rate plan
      offered by the Bank to its customers generally at such time and includes a
      fixed interest rate plan providing for blended repayments.

      "Floating Interest Rate Plan" means the floating interest rate plan set
      out herein.

      "Interest Adjustment Date" means the dates established in this agreement
      for the adjustment or further adjustment of the interest rate.

      "Loan" means the loan offered in the Commitment Letter in the amount of
      $400,000.00.

      "Loan Rate" means the floating interest rate applicable to this Loan which
      is an annual rate 0.75% per annum above the Bank's Floating Base Rate
      calculated as set out herein.

      "Maturity Date" is January 23, 2003 on which date any monies then unpaid
      will be due.

      "Month of Loan Authorization" is March, 1998.

      "Permitted Encumbrance" means financial or other charges permitted to rank
      in priority to the Security under the terms of the Commitment Letter.

                                     Page 2
Loan Agreement - FLOATING
Rev. December, 1997
<PAGE>   3

      "Security" means the security described in Schedule "A" attached and all
      additions, replacements or modifications thereto.

1.02  Jurisdiction

      This agreement will be governed by and construed in accordance with the
      laws of the jurisdiction in which the branch of the Bank is located as
      shown on the first page of this Agreement.

2.    THE LOAN

      The Bank agrees to lend to the Borrower and the Borrower agrees to borrow
      from the Bank, the Loan pursuant to the Commitment Letter and the Borrower
      agrees to give the Security to secure the Loan.

3.    REPAYMENT TERMS

      The Borrower will repay to the Bank at its head office in the City of
      Montreal, in the Province of Quebec, or at such other place in Canada as
      the Bank may in writing from time to time direct, the Loan with interest
      thereon as follows:

      PRINCIPAL AMOUNT $400,000.00

      INTEREST RATE

      The interest rate is the Loan Rate. The Loan Rate shall vary automatically
      without notice to the Borrower upon change in the Bank's Floating Base
      Rate. At the date of the Commitment Letter, the Bank's Floating Base Rate
      was 8.500% per annum and the Loan Rate was therefore 9.250% per annum.

      FIRST PAYMENT DATE

      (a)   INTEREST

            The 23rd day of the month following the month of the first
            disbursement of principal, unless this disbursement occurs after the
            23rd day of the month in which case the first payment of interest is
            required the 23rd day of the second month following the month of the
            first disbursement.

      (b)   PRINCIPAL

            The first payment date for principal is December 23, 1998.

      AMOUNT OF EACH PERIODIC PAYMENT

      (a)   INTEREST

            Interest is calculated monthly not in advance on the principal
            outstanding from time to time commencing on the date of the first
            disbursement of principal. Interest is paid monthly on the 23rd day
            of each month commencing on the first payment date of interest above
            and continuing until all amounts required to be paid under the Loan
            are paid.

      (b)   PRINCIPAL

            Principal is repaid in two consecutive monthly seasonal instalments
            of $30,000.00 each (December to January) on the 23rd day of each
            month commencing December 23, 1998, followed by two consecutive
            monthly seasonal instalments of $35,000.00 (December to January) on
            the 23rd day of each month commencing on December 23, 1999, followed
            by four consecutive monthly seasonal instalments of $40,000 each
            (December to January) on the 23rd day of each month starting on

                                     Page 3
Loan Agreement - FLOATING
Rev. December, 1997
<PAGE>   4

            December 23, 2000, followed by two consecutive monthly seasonal
            instalments of $55,000.00 each (December to January) on the 23rd day
            of each month commencing on December 23, 2002, with the balance of
            the principal and any other monies owing to be paid on the Maturity
            Date.

4.    OTHER TERMS

4.01  Switching Plans

      The Borrower may, at any time, elect to change to any Fixed Interest Rate
      Plan offered by the Bank at the time of such election upon giving the Bank
      30 days written notice of such election and upon payment of the Bank's
      standard switching fee then in effect and upon other terms and conditions
      agreed upon with the Bank at the time.

4.02  Interest Adjustments

      Any underlying conditions in the Commitment Letter allowing other
      adjustments by the Bank to the Loan Rate, if any, apply to the Loan.

5.    PREPAYMENT

5.01  Fixed Interest Rate Plan

      If the Borrower is on a Fixed Interest Rate Plan, the following provisions
      will apply:

      The Borrower shall have the privilege of prepaying at any time, without
      notice, the whole or any part of the outstanding principal upon payment of
      the accrued interest, and any other sums due at the date of the prepayment
      provided that an indemnity is paid to the Bank which is equal to:

      (a)   three months' interest on the principal prepaid, such interest to be
            computed in the same manner and at the same rate as a monthly
            instalment of interest herein would, at time of prepayment, be
            calculated; and

      (b)   an interest differential charge which is only applicable if, on the
            date prepayment is received, the Bank's Base Rate for the
            Corresponding Fixed Interest Rate Plan is lower than the Base Rate
            in effect when the Borrower either entered or renewed the Fixed
            Interest Rate Plan being prepaid, whichever is the most recent. The
            interest differential is the difference between these two rates. The
            interest differential is multiplied by the principal that would have
            been outstanding at the 23rd day of each month until the next
            Interest Adjustment Date (or the maturity of the principal if
            earlier). Then the present value of the amount or amounts obtained
            by such multiplication is calculated by discounting such amount or
            amounts using the Base Rate for the Corresponding Fixed Interest
            Rate Plan as the discount factor. The total of the present values is
            the interest differential charge.

      PROVIDED THAT the said indemnity shall not exceed the amount chargeable
      upon prepayment according to the terms of the Interest Act of Canada.

      In the case of partial prepayment, the interest differential charge will
      be reduced in the same proportion as the amount prepaid bears to the
      principal outstanding at the time prepayment is received.

5.02  Floating Interest Rate Plan

      If the Borrower is on the Floating Interest Rate Plan, the Borrower shall
      have the privilege of prepaying at any time, without notice, the whole or
      any part of the outstanding principal upon payment of the accrued
      interest, and any other sums due at the date of prepayment provided that
      an indemnity is paid to the Bank which is equal to three months' interest,
      at the Loan Rate, on the amount prepaid.

                                     Page 4
Loan Agreement - FLOATING
Rev. December, 1997
<PAGE>   5

5.03  Annual Privilege

      In addition to the foregoing prepayment provisions, the Borrower shall
      have the privilege of prepaying annually, on the 24th day of the Month of
      Loan Authorization, an amount not exceeding 15% (non-cumulative from one
      year to another) of the outstanding principal without indemnity.

5.04  General

      Partial prepayments shall be applied regressively on the then last
      maturing instalments of principal.

6.    OTHER PAYMENT PROVISIONS

6.01  Payment Date

      Although it is stated above that payments of principal and interest are to
      be made on the 23rd day of the month, it is agreed that the Bank has the
      right, exercisable at any time, to designate any other day of the month
      for payments in place of the 23rd.

6.02  Interest Calculation

      Interest at the rate provided by this Agreement is payable after as well
      as before maturity both before and after default and both before and after
      judgment.

6.03  Arrears of Interest

      Arrears of interest bear interest at the rate from time to time chargeable
      on principal compounded monthly calculated and paid at the same times and
      in the same manner as interest on principal and is secured by the
      Security.

6.04  Expenses and Fees

      The Borrower covenants to pay on demand:

      a)    all legal fees and disbursements in respect of the Loan, the
            preparation, issue and registration of the Security and all legal,
            receiver's, bailiff's or other fees and disbursements in respect of
            the enforcement or preservation of the Bank's rights and remedies
            under the Loan, or the Security. In addition, the Borrower covenants
            to pay the costs of any appraiser and any environmental investigator
            engaged by the Bank to effect any inspection, appraisal,
            investigation or environmental audit of the secured assets and the
            cost of any environmental rehabilitation, removal, or repair
            necessary to protect, preserve or remediate the secured assets,
            including any cost, fine or penalty the Bank is obliged to incur by
            reason of any statute, order or direction by competent authority.
            The Borrower's obligations to indemnify the Bank under this
            paragraph continue before and after default and notwithstanding
            repayment of the Loan or discharge of any part or all of the
            Security;

      b)    an allowance for the time, work and expense of the Bank or of any
            agent, solicitor or servant of the Bank for any purpose herein
            provided for and whether such time, work or expense is advanced or
            incurred with the consent of the Borrower or otherwise; and

      c)    all fees from time to time chargeable by the Bank arising out of any
            term of the Commitment Letter or any of the Security including
            inspection, administration, discharge and returned cheque handling
            fees.

6.05  Interest on Unpaid Amounts

      Any amounts required to be paid herein, if not paid when due, will bear
      interest until paid in the same manner as arrears of interest and are
      secured by the Security.

                                     Page 5
Loan Agreement - FLOATING
Rev. December, 1997
<PAGE>   6

7.    SECURITY

7.01  Form of Security

      All Security shall be in form and substance satisfactory to the Bank and
      its counsel and shall be in form sufficient for registration or filing
      under all applicable laws.

7.02  Further Assurances

      The Borrower shall, at its sole cost, execute and deliver or cause to be
      executed and delivered to the Bank such further deeds or other instruments
      of conveyance, assignment, transfer, mortgage, pledge, charge, guarantee
      or acknowledgment or such additional instruments or other assurances as
      the Bank may from time to time reasonably require to carry out the intent
      of this Agreement.

7.03  Multiple Security

      Notwithstanding anything else contained in any part of the Security, each
      part is given as additional, concurrent and collateral security to the
      remainder of the Security, and the Bank shall not be obliged to realize or
      enforce its rights under any part of the Security before enforcing or
      realizing on the remainder of the Security, but may enforce or realize on
      any part of the Security as it sees fit, in whichever order it sees fit,
      and may abstain from enforcing any part of the Security as it sees fit,
      any rule of law or equity to the contrary notwithstanding.

8.    BUSINESS AND ASSETS

8.01  Title to Assets

      The Borrower has good and marketable title to its assets that are subject
      to the Security, in each case free and clear of any encumbrance other than
      Permitted Encumbrances.

8.02  Material Contracts

      All material contracts to which the Borrower is a party or which affect
      the Borrower's business or its assets that are subject to the Security are
      not in default and will remain in good standing.

8.03  Claims and Litigation

      There are no actions, suits, or claims pending or threatened against the
      Borrower by any person or governmental authority which could, if an
      adverse decision is made, affect the ability of the Borrower to perform
      its obligations under this Agreement.

8.04  Conduct of Business

      The Borrower will carry on its business in a proper business-like manner,
      will keep proper books of account and records covering all it's business
      and affairs, will maintain in good standing all necessary licences,
      permits, approvals and consents and will comply with all laws, ordinances
      and regulations applicable to it.

8.05  Reorganization

      The Borrower agrees not to:

      a)    amalgamate, merge, consolidate or enter into any business
            combination with any other person including, without limitation, a
            joint venture partnership; or

                                     Page 6
Loan Agreement - FLOATING
Rev. December, 1997
<PAGE>   7

      (b)   make any investment or permit any of its subsidiaries to make any
            investment in an affiliate;

      without the prior written consent of the Bank.

8.06  Corporate Undertakings

      Where the Borrower is a corporation, it shall not, without the Bank's
      prior written consent:

      (a)   issue, purchase or redeem its shares;

      (b)   permit any of its shareholders to sell, transfer or dispose of its
            shares;

      (c)   declare or pay any dividends on any of its issued shares;

      (d)   amend its capital structure.

8.07  Maintenance

      The Borrower will keep and maintain all of its assets used in the conduct
      of its business in good order, repair and condition, reasonable wear and
      tear excepted.

8.08  Security and Liens

      The Borrower will not give, grant, assume or permit to exist, any
      encumbrance on any of its assets that are subject to the Security other
      than Permitted Encumbrances.

8.09  Nature of Business

      The Borrower will not:

      (a)   engage in any business or permit the use of its premises whether by
            a tenant or other person for any purpose that would constitute an
            ineligible activity under the Commitment Letter;

      (b)   change its name or the location of the assets that are subject to
            the Security without the Bank's prior written consent;

      (c)   change the nature or type of its business without the Bank's prior
            written consent;

      (d)   sell, transfer or dispose of the assets that are subject to the
            Security, including without limitation, the licensing of any
            intellectual property, without the Bank's prior written consent
            except in the ordinary course of business.

8.10  Additional Covenants

      The Borrower will observe and perform the additional covenants set forth
      in Schedule "B" attached, if any.

9.    ENVIRONMENT

      The Borrower represents and agrees that:

      (a)   it operates and will continue to operate in conformity with all
            environmental laws and will ensure its staff is trained as required
            for that purpose;

      (b)   it has an environmental emergency response plan and all officers and
            employees are familiar with that plan and their duties under it;

                                     Page 7
Loan Agreement - FLOATING
Rev. December, 1997
<PAGE>   8

      (c)   it possesses and will maintain all environmental licences, permits
            and other governmental approvals as may be necessary for the conduct
            of its business;

      (d)   its assets are and will remain free of environmental damage or
            contamination;

      (e)   there has been no complaint, prosecution, investigation or
            proceeding, environmental or otherwise, with respect to the
            Borrower's business or assets;

      (f)   it will advise the Bank immediately upon becoming aware of any
            environmental problem relating to its business or its assets that
            are subject to the Security;

      (g)   it will provide the Bank with copies of all communications with
            environmental officials and all environmental studies or assessments
            prepared for the Borrower and it consents to the Bank contacting and
            making enquiries of environmental officials or assessors;

      (h)   it will not install on or under any land mortgaged to the Bank
            storage tanks for petroleum products or any hazardous substance
            without the Bank's prior written consent and only upon full
            compliance with the Bank's requirements and the standards and
            requirements of all boards and governmental authorities having
            jurisdiction over the Borrower's activities or assets.

10.   INSURANCE

      During the continuance of this Loan, the Borrower shall insure and keep
      insured all assets pledged as security hereunder to their full insurable
      value against loss or damage, however caused. The insurance policy(ies)
      shall record the Bank as loss payee and contain the standard mortgage
      clause as approved by the Insurance Bureau of Canada, or a mortgage
      endorsement or a Breach of Warranty Clause, as appropriate. The Borrower
      shall provide evidence of the insurance coverage and pertinent clauses to
      the Bank, if and when requested.

      If the Borrower does not maintain insurance as required, the Bank may
      purchase insurance to protect its own interest and the premiums shall be
      payable by the Borrower.

      The Borrower shall notify the Bank of the occurrence of any damage or loss
      and furnish any necessary proof to enable the Bank to obtain payment of
      the insurance money.

      Receipt of insurance proceeds by the Bank does not constitute a payment on
      the Loan unless the Bank chooses to apply the funds to the Loan and any
      release of insurance proceeds not so applied does not constitute a
      readvance under the Loan.

      If any insurance proceeds become payable, the Bank may, in its absolute
      discretion, apply such proceeds to the Loan and such other obligations of
      the Borrower to it in whatever order or manner it sees fit and may release
      such proceeds or part of them.

      The Borrower hereby authorizes and directs the insurer under any policy of
      insurance called for above to include the name of the Bank as a loss payee
      in any cheque or draft which may be issued with respect to a claim
      settlement under such insurance and the production by the Bank of a copy
      of this agreement shall be the insurer's full and complete authority for
      so doing.

11.   FINANCIAL REPORTING

      The Borrower shall deliver to the Bank its annual financial statements
      within 90 days of its year end, interim statements one month after
      statement date and shall deliver such other financial statements and
      information more frequently as may be directed by the Bank from time to
      time. All such statements shall accurately state the assets and
      liabilities and income and expenses of the Borrower's business and such

                                     Page 8
Loan Agreement - FLOATING
Rev. December, 1997
<PAGE>   9

      other information as the Bank may direct, including, if the Bank so
      directs, the opinion of an independent, qualified auditor.

12.   INSPECTIONS

      The Bank may, by its officers or authorized agents, enter upon the
      Borrower's premises at any time, from time to time, to inspect or to
      appraise the Borrower's assets that are subject to the Security and to
      inspect the books and records of the Borrower and make extracts therefrom.

      The Borrower hereby authorizes its accountants, auditors and bookkeepers
      to release to the Bank for inspection and copying any books and records of
      the Borrower or relating to the Borrower which they may have in their
      possession.

13.   DEFAULT

13.01 Events of Default

      The Borrower shall be in default under this Agreement in the event of a
      default pursuant to any of the Security, or in any of the following
      events:

      (a)   the Borrower makes default in the payment of the Loan or any money
            secured by the Security, at the time and in the amounts provided; or

      (b)   the Borrower is in breach of any term, condition, obligation or
            covenant to the Bank, or any representation or warranty to the Bank
            is untrue, whether or not contained in the Security, the Commitment
            Letter or this agreement; or

      (c)   the Borrower declares itself to be insolvent or admits in writing
            its inability to pay its debts generally as they become due, or
            makes an assignment for the benefit of its creditors, is declared
            bankrupt, makes a proposal or otherwise takes advantage of
            provisions for relief under the Bankruptcy and Insolvency Act, the
            Companies Creditors' Arrangement Act or similar legislation in any
            jurisdiction, or makes an authorized assignment; or

      (d)   a receiver, receiver and manager or receiver-manager of all or any
            part of the Borrower's assets is appointed; or

      (e)   an order is made or an effective resolution is passed for winding up
            the Borrower; or

      (f)   the Borrower ceases or threatens to cease to carry on all or a
            substantial part of its business; or

      (g)   an order of execution against the Borrower's assets or any part
            thereof remains unsatisfied for a period of 10 days; or

      (h)   the Bank in good faith believes and has commercially reasonable
            grounds to believe that the prospect of payment or performance of
            any of the Borrower's obligations is impaired or that the property
            provided as security hereunder is in danger of loss, damage, misuse,
            seizure or confiscation; or

      (i)   the lessor under any lease to the Borrower of any real or personal
            property takes any steps to or threatens to terminate such lease, or
            otherwise exercise any of its remedies under such lease as a result
            of any default thereunder by the Borrower; or

      (j)   the Borrower causes or allows hazardous materials to be brought upon
            any lands or premises occupied by the Borrower or incorporated into
            any of its assets without the Bank's prior consent, or if the
            Borrower causes, permits, or fails to remedy any environmental
            contamination upon, in or

                                     Page 9
Loan Agreement - FLOATING
Rev. December, 1997
<PAGE>   10

            under any of its lands or assets, or fails to comply with any
            abatement or remediation order given by a responsible authority; or

      (k)   the Borrower is in default under any loan agreement or security
            given by the Borrower to the Bank or to any other lender in relation
            to any indebtedness other than the Loan or the Borrower accelerates
            or permits the acceleration of the maturity of any material
            indebtedness to any creditor other than the Bank; or

      (l)   any guarantor of the Loan makes default under any term of its
            guarantee or under any term of any security given by the guarantor
            in support of that guarantee; or

      (m)   the Borrower uses any moneys advanced to it by the Bank for any
            purpose other than declared to and agreed upon by the Bank.

      Default under this agreement or any of the Security constitutes default
      under all of the Security and this agreement.

      Any default or non-compliance with any terms of the Commitment Letter not
      at variance with this agreement shall constitute an event of default under
      this Agreement.

13.02 Consequences of Default

      In the event of default hereunder, the Loan and any other money secured by
      the Security shall, at the option of the Bank, immediately become due and
      payable and the Security enforceable.

14.   REMEDIES AND POWERS

14.01 Obligation to Advance

      Neither the execution and delivery of this agreement or the Security nor
      the advance of money thereunder binds the Bank to make any advance or
      further advance of the Loan.

14.02 Dealings by the Bank

      The Bank may grant extensions of time and other indulgences, take and give
      up securities including the Security, accept compositions, grant releases
      and discharges and otherwise deal with the Borrower, debtors of the
      Borrower, sureties and others and with the Security or any other security
      from time to time given to the Bank by the Borrower or any other person
      all as the Bank may see fit without prejudice to any of the Borrower's
      indebtedness, liabilities and obligations to the Bank or the Bank's right
      to hold and realize on any security. The Borrower further agrees that it
      shall not be released nor shall its liability be in any way reduced by
      reason that the Bank has done or concurred in the doing of anything
      whereby a surety would be released in whole or in part.

14.03 Remedies Cumulative

      The Bank may in its sole discretion realize upon any security including
      the Security held by it in any order or concurrently whether such security
      is held by it at the date hereof or is provided at any time hereafter. No
      realization or exercise by the Bank of any power or right hereunder or
      under any security shall in any way prejudice any further realization or
      exercise until all obligations are fully satisfied. All rights and
      remedies of the Bank under this Agreement are cumulative and not in
      substitution for its rights under the Security or at law.

14.04 Waiver

      The Bank may at any time waive any default which may have occurred. No
      such waiver shall extend to or affect any other default or the Bank's
      rights or remedies in respect thereof.

                                     Page 10
Loan Agreement - FLOATING
Rev. December, 1997
<PAGE>   11

14.05 Appropriation

      The Bank may, before or after default, appropriate any moneys received by
      it from the Borrower or any other person, other than regular payments of
      principal and interest, to payment of such of the obligations of the
      Borrower hereunder or under any other agreement between the Bank and the
      Borrower as the Bank in its sole discretion may see fit, and any such
      appropriations may be changed or varied from time to time.

14.06 Non-Merger

      Neither this agreement nor the Security shall operate so as to create any
      merger or discharge of any warranties, obligations, covenants or
      representations of the Borrower under the Application for Financing,
      Commitment Letter, any amendment to them, or other document delivered by
      or on behalf of the Borrower, all of which survive the execution and
      delivery of the Security, the perfection of the Security interests created
      thereby, and the advance of money by the Bank.

      The taking of a judgment or judgments or any other action or dealing
      whatsoever by the Bank in respect of any security from time to time given
      to the Bank by the Borrower or any other person shall not operate as a
      merger or release of any of the Borrower's indebtedness, liabilities or
      obligations hereunder or in any way affect or prejudice the rights and
      remedies of the Bank with respect to such indebtedness, liabilities and
      obligations.

15.   GENERAL

15.01 Conflicts with other Documents

      Except for the Application for Financing, the Commitment Letter, the
      Security and any other instrument delivered hereunder or pursuant hereto,
      this Agreement constitutes the entire agreement between the Bank and the
      Borrower with respect to the subject mailer hereof.

      To the extent that any provision of the Application for Financing, the
      Commitment Letter or any of the Security or any other instrument delivered
      hereunder or pursuant hereto is inconsistent with or in conflict with the
      provisions of this Agreement, the provisions of this Agreement shall
      govern except for underlying conditions contained in the Commitment
      Letter.

      The underlying conditions contained in the Commitment Letter are
      incorporated herein by reference, provided that in the event that any
      underlying condition contained in the Commitment Letter is inconsistent or
      in conflict with the provisions of this Agreement, other than Schedule "B"
      hereto, if any, then the Commitment Letter shall govern as to that
      underlying condition. In the event that any underlying condition contained
      in the Commitment Letter is inconsistent with or in conflict with the
      provisions of Schedule "B" to this Agreement, if any, then Schedule "B"
      shall govern as to that underlying condition.

15.02 Notice

      Any demand or notice herein referred to may be effectively given by the
      Bank by personal delivery thereof or by mailing such demand or notice by
      prepaid post to the Borrower at the address set out above, or at such
      other address as may be given in writing by the Borrower to the Bank.
      Delivery by facsimile transmission is deemed to be personal service and is
      deemed to be received on the next business day following transmission.
      Delivery by prepaid mail is deemed to be received three business days
      after mailing.

15.03 Severability

      Any provision in this Agreement which is prohibited or unenforceable in
      any jurisdiction shall, as to such jurisdiction, be ineffective to the
      extent of such prohibition or unenforceability without invalidating the

Loan Agreement - FLOATING           Page 11
Rev. December, 1997

<PAGE>   12

      remaining provisions hereof or affecting the validity of enforceability of
      such provision in any other jurisdiction.

15.04 Time of the Essence

      Time is of the essence of this Agreement.

15.05 Multiple Borrowers

      Whenever the term "Borrower" includes more than one party:

      (a)   all covenants, liabilities, and obligations entered into by or
            imposed on the Borrower herein are deemed to be joint and several;

      (b)   each of the parties constituting the Borrower is, as between them, a
            principal debtor in respect of the Loan and all monies payable under
            the Security and notwithstanding any subsequent change in their
            position inter se or notice thereof for all purposes of this
            agreement shall remain a principal debtor and the Bank is not bound
            by or obliged to recognize any such change or notice.

15.06 No Assignment

      The Borrower may not assign any of its rights or obligations under this
      Agreement, and no such purported assignment shall be effective, without
      the prior written consent of the Bank, which consent may be arbitrarily
      withheld.

15.07 Discharges

      The Borrower shall pay a fee, to be fixed by the Bank, for the preparation
      or execution of any full or partial release or discharge of any of the
      Security, any Borrower, or any guarantor of the Loan.

15.08 Pre-incorporation Advances

      In the event any of the Borrowers were not yet incorporated or did not
      have legal status at the time of execution of the Commitment Letter or at
      the time of any advance of principal under the Loan such Borrower ratifies
      and approves all such actions, confirms that such advance was applied for
      its benefit and assumes liability for such advance, such contract and any
      expenditure made or cost incurred by the Bank hereunder.

15.09 Successors and Assigns

      This agreement shall enure to the benefit of and be binding on the parties
      hereto and their respective heirs, executors, successors and permitted
      assigns as the case may be.

15.10 Captions

      The division of this agreement into sections and the insertions of
      headings are for convenience of reference only and do not affect the
      interpretation of this Agreement.

15.11 Schedules

      All schedules to this Agreement, together with all documents incorporated
      by reference herein or therein, form an integral part of this Agreement.

Loan Agreement - FLOATING           Page 12
Rev. December, 1997

<PAGE>   13

5.12  Interpretation

      Whenever in this Agreement the singular or neuter pronoun is used the same
      shall be respectively construed as the plural, masculine or feminine where
      the context or the parties hereto require.

5.13 Counterparts

      This Agreement may be executed in any number of counterparts and by
      different persons in separate counterparts, each of which when so executed
      shall be deemed to be an original and all of which taken together shall
      constitute one and the same agreement.

5.14 Receipt by the Borrower

      The Borrower acknowledges receipt of an executed copy of this Agreement.

EXECUTION

IN WITNESS WHEREOF the Borrower has hereunto set his hand and seal or has
affixed its corporate seal duly attested by the hand(s) of its proper officer(s)
in that behalf, on the day and year first above written.

                                       TRANSCONTINENTAL GOURMET FOODS INC.

                                       Per: /s/
                                            ------------------------------------
                                            (Authorized Signing Officer)

                                       Per: /s/
                                            ------------------------------------
                                            (Authorized Signing Officer)

Loan Agreement - FLOATING           Page 13

Rev. December, 1997

<PAGE>   14

                                  SCHEDULE "A"
                                TO LOAN AGREEMENT

                                     BETWEEN

                       TRANSCONTINENTAL GOURMET FOODS INC.

                                   AS BORROWER

                                       AND

                       BUSINESS DEVELOPMENT BANK OF CANADA

                                    SECURITY

1.    General Security Agreement dated _______________, 1998 between the
      Borrower and the Bank.

2.    Guarantee dated __________________, 1998 from Victor Fradkin in the amount
      of $80,000.00

3.    Guarantee dated __________________, 1998 from Rhys MacDonald Quinn in the
      amount of $40,000.00

4.    Guarantee dated _________________, 1998 from Larry Sheldon Hoffman in the
      amount of $40,000.00

5.    Guarantee dated ________________,1998 from Leonard Dennis Shiffman in the
      amount of $40,000.00

6.    Waiver of Distraint dated _____________________, 1998 between Raffael
      Cerundolo, Terry Taurasi and T&R Construction and the Bank.

7.    Priority Agreement dated __________________, 1998 between the Bank, The
      Bank of Nova Scotia and the Borrower.

8.    Insurance on assets, including boiler and machinery and "All-Risks" or
      fire and extended coverage, recording the Bank as loss payee.

Loan Agreement - FLOATING
Rev. December, 1997

<PAGE>   15

                                  SCHEDULE "B"
                                TO LOAN AGREEMENT

                                     BETWEEN

                       TRANSCONTINENTAL GOURMET FOODS INC.

                                   AS BORROWER

                                       AND

                       BUSINESS DEVELOPMENT BANK OF CANADA

                      ADDITIONAL COVENANTS OF THE BORROWER

1.    The Borrower shall, at all times, maintain a long term, debt:equity ratio
      of no more than 1.5:1. Long term debt includes all loans, leases and
      debentures (including their current portion). Equity includes share
      capital, retained earnings, shareholders loans less both intangible assets
      and investments.

                                   CONDITIONS

1.    Audited financial statements as of February 28, 1998 show, in the Bank's
      opinion, no material adverse change in the Borrower's financial position
      since the internal financial statements dated February, 1998.

Loan Agreement - FLOATING
Rev. December, 1997

<PAGE>   16

[LOGO]
BDC

Transcontinental Gourmet Foods Inc.
March 27, 1998
Page 2

STANDBY FEE DATE

Replace:

May 12, 1998

By:

October 12, 1998

All other terms and conditions remain the same.

It is understood and agreed that the agreement contained herein shall be binding
on the ensure to the benefit of yours and the Bank's successors and assigns.

Please sign and return the attached copy of this letter for our files.

Yours truly,

BUSINESS DEVELOPMENT BANK OF CANADA

Per: _____________________________________
     Cathie Jakubczyk
     Client Services Representative

Enclosure

And Transcontinental Gourmet Foods Inc., Victor Fradkin, Rhys Quinn, Larry
Hoffman and Len Shiffman hereby acknowledges that they read and understood the
foregoing letter agreement and consents to and agrees to be bound by the said
amendment.

Signed this 5th day of [ILLEGIBLE], 1998.

/s/                                     /s/ Victor Fradkin
-----------------------------------     ----------------------------------------
Transcontinental Gourmet Foods Inc.     Victor Fradkin, (Guarantor)

/s/ Rhys Quinn                          /s/ Larry Hoffman
-----------------------------------     ----------------------------------------
Rhys Quinn, (Guarantor)                 Larry Hoffman, (Guarantor)

/s/ Len Shiffman
-----------------------------------
Len Shiffman (Guarantor)

<PAGE>   17

                              [Letterhead of BDC]

[LOGO]
BDC

                                                                   March 27, 198

Transcontinental Gourmet Foods Inc.
610 Oster Lane, Unit 3
Concord, Ontario
L4K 3B2

Attention: Victor Fradkin

Dear Sirs:

Re: BDC Loan No. 358508-02-6

Further to letter of offer dated March 12, 1998, the Bank is agreeable to the
following amendments:

INTEREST RATE VARIANCE

Replace:

1.25%

By:

0.75%

SECURITY AND LEGAL DOCUMENTATION

Replace:

3.    Guarantee of Victor Fradkin for $90,000.00, Rhys Quinn for $45,000, Larry
      Hoffman for $30,000.00 and Len Shiffman for $30,000.00. [The guarantors
      agree that they are personally guaranteeing the payment of the commitment,
      standby and legal fees as per the letter of Offer.]

By:

3.    Guarantee of Victor Fradkin for $80,000.00, Rhys Quinn for $40,000, Larry
      Hoffman for $40,000.00 and Len Shiffman for $40,000.00. [The guarantors
      agree that they are personally guaranteeing the payment of the commitment,
      standby and legal fees as per the letter of Offer.]

 .../2

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