Document:

EXHIBIT 10.1

                      ASSIGNMENT AND ASSUMPTION AGREEMENT
             (Relating to Development Authority of Gwinnett County
                      Industrial Development Revenue Bonds
                   (Color Image, Inc. Project), Series 1999)

     THIS ASSIGNMENT AND ASSUMPTION  AGREEMENT (the  "Assumption  Agreement") is
entered into as of the 19th day of September  2005, by and among KINGS BROTHERS,
LLC, a Georgia  limited  liability  company (the  "Assignor") and COLOR IMAGING,
INC. (formerly Color Image, Inc., a Georgia corporation), a Delaware corporation
(the "Assignee");

                                  WITNESSETH:

     WHEREAS,  the  Development  Authority of Gwinnett County (the "Issuer") has
previously  issued its  $4,100,000  in original  aggregate  principal  amount of
Industrial  Development  Revenue Bonds (Color Image, Inc. Project),  Series 1999
(the "Bonds") for the purpose of financing  the  acquisition,  construction  and
equipping of a manufacturing plant in Gwinnett County,  Georgia (the "Project");
and

     WHEREAS,  the Issuer lent the proceeds of the Bonds to Assignor pursuant to
a Loan Agreement,  dated as of June 1, 1999 (the "Loan Agreement"),  between the
Issuer, the Assignor and the Assignee; and

     WHEREAS,  as security for the Bonds,  the Assignor  requested that Wachovia
Bank, National Association (formerly SouthTrust Bank, National  Association),  a
national banking  association  with a principal office in Atlanta,  Georgia (the
"Bank")  issue its  irrevocable  letter of credit  (the  "Letter of  Credit") to
Wachovia  Bank,  National   Association   (formerly  SouthTrust  Bank,  National
Association), as trustee (the "Trustee"); and

     WHEREAS,  in  connection  with the  issuance  of the Letter of Credit,  the
Assignor entered into and executed, the following:

          (1)  Loan Agreement,  dated as of June 1, 1999 (the "Loan  Agreement")
               by and between the Assignor, the Assignee and the Issuer;

          (2)  Remarketing and Interest Services Agreement,  dated as of June 1,
               1999  (the  "Remarketing  Agreement),  among  the  Assignor,  the
               Assignee,  the Issuer and  Wachovia  Bank,  National  Association
               (formerly SouthTrust Securities, Inc.), as remarketing agent;

          (3)  Reimbursement   Agreement,   dated  as  of  June  1,   1999  (the
               "Reimbursement  Agreement")  by and  between  the  Assignor,  the
               Assignee and the Bank.

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               (suchdocuments  are  hereinafter  referred to collectively as the
               "Bond Documents"); and

     WHEREAS, the Assignor is a related entity to the Assignee; and

     WHEREAS,  the  Assignor  has  requested  that it be released  from the Bond
Documents (the "Transaction"); and

     WHEREAS, in connection with the Transaction, the Assignor desires to
sell and assign all of its rights and  liabilities  to the  Assignee,  including
without limitation,  all right, title,  interest,  duties and obligations of the
Assignor in, to and under the Bond Documents;

     NOW,  THEREFORE,  in consideration of the premises,  the mutual  agreements
herein  contained,  and other good and valuable  consideration,  the receipt and
sufficiency  of which are  hereby  acknowledged,  the  parties  hereto  agree as
follows:

     1. The Assignor  hereby  assigns,  transfers  and  delegates all its right,
title,  interest,  duties and obligations in, to and under the Bond Documents to
the Assignee.

     2.  The  Assignee  hereby  assumes  all of  the  Assignor's  right,  title,
interest,  duties  and  obligations  in,  to and under  the Bond  Documents  and
covenants to perform all of the Assignor's agreements, obligations and covenants
thereunder.

     3.  The  Assignee  hereby  acknowledges  that the  Bank,  the  Issuer,  the
Remarketing  Agent and the Trustee may have and exercise,  as against  Assignee,
all right, title, interest,  powers and privileges of the Bank, the Trustee, the
Remarketing  Agent and the  Issuer  under the Bond  Documents,  until all of the
payments  and  other  obligations  required  of the  Assignor  and the  Assignee
thereunder have been paid or otherwise satisfied in full.

     4. The Bank hereby  acknowledges  and consents to the foregoing  assignment
and assumption under each such Bond Document.

     5. The Assignor  hereby  represents  and warrants,  on the date hereof,  as
follows:

          (a) The Bond Documents  executed and delivered on the date of issuance
     and  delivery  of the  Bonds,  copies of which have been  furnished  to the
     Assignee,  constitute  true,  complete  and  accurate  copies  of the  Bond
     Documents, and there have been no supplements, amendments and modifications
     thereto;  and  there  are no  amendments  and  modifications  to  the  Bond
     Documents or to any other  instruments  or agreements to which the Assignor
     is a party or by which it is bound and which relate to the Bond Documents.

          (b) The Bond  Documents  are in full  force and  effect as of the date
     hereof, and no breached, defaults or defenses are in existence or have been
     asserted  under  the  Bond  Documents  by  the  Trustee  or  the  Bank  (as
     applicable),  and no facts or circumstances exist which, with the giving of
     notice or the passage of time, or both, would constitute a breach or

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<PAGE>

     default under the Bond Documents.

          (c) The  aggregate  outstanding  principal  balance under the Bonds on
     September 19, 2005 is $2,075,000.

     6. The Assignee represents and warrants, on the date hereof, as follows:

          (a) The Assignee is a corporation duly organized, validly existing and
     in good standing under the laws of the of the State of Delaware and has all
     requisite power and authority and all necessary licenses and permits to own
     and  operate  its  properties  and to carry on its  business  as now  being
     conducted and as presently proposed to be conducted.

          (b) There  are no  proceedings  pending,  or to the  knowledge  of the
     Assignee  threatened  against or  affecting  the  Assignee  in any court or
     before any governmental  authority or arbitration  aboard or tribunal which
     involve  the   possibility  of  materially  and  adversely   affecting  the
     properties,   business,  prospects,  profits  or  condition  (financial  or
     otherwise) of the  Assignee,  or the ability of the Assignee to perform its
     obligations  under this  Assumption  Agreement or the Bond  Documents.  The
     Assignee  is not  in  default  with  respect  to an  order  of  any  court,
     governmental authority of arbitration board or tribunal.

          (c) The  execution  and  delivery by the  Assignee of this  Assumption
     Agreement,  and the  compliance by the Assignee with all of the  provisions
     hereof and of the Bond  Documents (i) are within the corporate  power of he
     Assignee, (ii) will not conflict with or result in any breach of any of the
     provisions of, or constitute a default under,  or result in the creation of
     any lien, charge or encumbrance upon any property of the Assignee under the
     provisions of, any agreement,  charter document, by-law or other instrument
     to which  the  Assignee  is a party or by  which  it may be  bound,  or any
     license,  judgment,  decree, law, statute, order, rule or regulation of any
     court or governmental  agency or body having jurisdiction over the Assignee
     or any of its activities or properties, and (iii) have been duly authorized
     by all necessary corporate action on the part of the Assignee.

          (d) Neither the Assignee nor any of its  business or  properties,  nor
     any  relationship  between  the  Assignee  and any  other  person,  nor any
     circumstances in connection with the execution, delivery and performance by
     the Assignee of this Assumption Agreement and the Bond Documents is such as
     to require  the  consent,  approval  or  authorization  of, or the  filing,
     registration or qualification  with, any governmental  authority on the pat
     of the Assignee other than those already obtained.

          (e) No event has occurred and no condition  exists with respect to the
     Assignee  that  would  constitute  an  "event  of  default"  under the Bond
     Documents or which,  with the lapse of time or with the giving of notice or
     both, would become an "event of default" under the Bond Documents. The

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     Assignee has consulted with its legal, tax and accounting advisors, and has
     been provided the  opportunity to consult with bond counsel,  regarding the
     requirements  for  maintaining the  excludability  of interest on the Bonds
     from gross  income for federal  income tax  purposes,  and the Assignee has
     concluded  that the  assumption by the Assignee of the  obligations  of the
     Assignor  under  the Bond  Documents,  will  not,  by  itself,  result in a
     Determination  of  Taxability  (as  defined  in the  Loan  Agreement).  The
     Assignee is not in  violation  in any  material  respect of any  agreement,
     charter  document,  by-law or other  instrument  to which it is party or by
     which it may be bound.

          (f)  The  Assignee  is  not in  violation  of  any  laws,  ordinances,
     governmental rules or regulations to which it is subject and has not failed
     to  obtain  any  licenses,   permits,   franchises  or  other  governmental
     authorizations  necessary  to the  ownership  of its  properties  or to the
     conduct  of its  business,  which  violation  or  failure  to obtain  might
     materially  and  adversely  affect  the  properties,  business,  prospects,
     profits or condition (financial or otherwise) of the Assignee.

          (g) The  Assignee  is not a party of any  contract  or  agreement,  or
     subject to any charter or other corporate restriction,  that materially and
     adversely affects the business of the Assignee. The Assignee is not a party
     to any contract or  agreement  that  restricts  the right or ability of the
     Assignee to incur or guarantee indebtedness for borrowed money.

          (h) Neither the  representations  of the  Assignee  contained  in this
     Assumption  Agreement,  nor any written statement furnished by or on behalf
     of  the  Assignee  to  the  Bank  in  connection   with  the   transactions
     contemplated  hereby,  contains any untrue  statement of a material fact or
     omits to state a material fact necessary to make the  statements  contained
     herein or herein not misleading. There is no fact that the Assignee has not
     disclosed  to the  Bank or the  Trustee  in  writing  that  materially  and
     adversely  affects  or in the future  may (so far as the  Assignee  can now
     reasonably   foresee)  materially  and  adversely  affect  the  properties,
     business,  prospects,  profits or condition (financial or otherwise) of the
     Assignee,  or the ability of the Assignee to perform its obligations  under
     this Assumption Agreement or the Bond Documents.

     7. The address of the  Assignee  for the  purpose of notice  under the Bond
Documents is as follows:

               Color Imaging, Inc.
               4350 Peachtree Industrial Boulevard, Suite 100
               Norcross, GA 30071
               Attn: Chief Financial Officer

     8.  Assignor  acknowledges  that it has  provided  or will  provide  to the
Trustee, the Issuer and the Bank, an opinion of bond counsel providing that this
Assignment will not adversely affect the exclusion of interest from gross income
of the bondholders for federal income tax purposes.

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<PAGE>

     IN WITNESS  WHEREOF,  the Assignor and Assignee have caused this Assumption
Agreement to be duly executed and delivered by their duly  authorized  officers,
all as of the date first above written.

                                      KINGS BROTHERS, LLC

                                           /S/ SUELING WANG
                                      By:______________________________
                                         Name: Sueling Wang
                                         Title: Managing Member

                                      COLOR IMAGING, INC.

                                           /S/ JUI-KUNG WANG
                                      By:______________________________
                                         Name: Jui-Kung Wang
                                         Title: Chief Executive Officer

CONSENTED:

WACHOVIA BANK, NATIONAL ASSOCIATION
(formerly SouthTrust Bank, National Association),
 as credit facility provider

    /S/ JON R. HAUSEMAN
By:__________________________
   Name:  Jon R. Hauseman
   Title:    Vice President

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<PAGE>EXHIBIT 10.2

             SECOND AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT

     THIS SECOND  AMENDED AND RESTATED LOAN AND SECURITY  AGREEMENT  dated as of
September 19, 2005, by and between COLOR IMAGING, INC. ("Borrower"),  a Delaware
corporation,  and WACHOVIA BANK,  NATIONAL  ASSOCIATION,  SUCCESSOR BY MERGER TO
SOUTHTRUST BANK ("Bank").

                                R E C I T A L S:

     1.  CURRENT  CIRCUMSTANCES.  Borrower is indebted to Bank under a revolving
loan in the  maximum  principal  amount of One  Million  Five  Hundred  Thousand
Dollars  ($1,500,000)  evidenced  by  Amended  and  Restated  Loan and  Security
Agreement  (as  amended  and  modified  prior  to the  date  hereof,  the  "LOAN
AGREEMENT")  dated as of June 16, 2003,  effective  as of July 1, 2003,  between
Borrower and Bank, as amended by Amendment of Loan Documents.

     2. AGREEMENT. Borrower and Bank have agreed to amend the Loan Agreement and
to restate the Loan Agreement in its entirety as so amended.

     NOW, THEREFORE,  Borrower and Bank, intending to be legally bound, agree as
follows:

     1. RECITALS. The foregoing recitals and provisions are true and correct and
are hereby incorporated herein by this reference as an integral part hereof.

     2.  RESTATEMENT;  NO NOVATION.  Borrower and Bank hereby  restate,  without
novation,  Articles I through XII of the Loan Agreement, and the Exhibits to the
Loan Agreement as required, in their entirety as follows:

                                    ARTICLE I
                         DEFINED TERMS, GENERAL MATTERS

     1.1.  DEFINED  TERMS.  As used in this  Loan and  Security  Agreement,  the
following terms shall have the following meanings:

     Account  - has the  meaning  set  forth  in the  Code,  together  with  any
guaranties,  letters  of credit,  Letter-of-Credit  Rights,  and other  security
therefor, including Supporting Obligations.

     Account  Debtor - any  Person who is or may  become  obligated  under or on
account of an Account.

     Affiliate  - any  director  or  officer  of  Borrower  or any  Person  who,
directly,  indirectly or  beneficially,  owns 5% or more of the capital stock of
Borrower or any member of the immediate family of any such officer,  director or
stockholder,  or any  corporation  or  other  entity  which  is  controlled  by,
controls, or is under common control with the Borrower.

     Aggregate  Loan Values - the sum of the Loan Value of Accounts and the Loan
Value of Inventory.

     Agreement - this Second Amended and Restated Loan and Security Agreement.

     Applicable Laws - all laws, rules and regulations applicable to the Person,
conduct, transaction,  covenant or Loan Document in question, including, but not
limited to, all applicable common law and equitable  principles;  all provisions

<PAGE>

of all applicable state and federal constitutions,  statutes, rules, regulations
and order of governmental  bodies; and all orders,  judgments and decrees of all
courts and arbitrators.

     Approved  Foreign Accounts - Accounts arising from sales to Account Debtors
outside  the United  States,  to Account  Debtors who are not  residents  of the
United  States or that  involve  shipments  to  addresses  outside of the United
States,  which Accounts are insured by insurers  acceptable to Bank, or that are
supported by letters of credit  issued by financial  institutions  acceptable to
Bank, on terms and conditions acceptable to Bank.

     Average  Quarterly Loan Balance - the amount  obtained by adding the unpaid
balance  of, as  applicable,  the First Term Loan or the Second Term Loan at the
end of each day for each day during the quarter in question  and  dividing  such
sum by the number of days in such quarter.

     Bank  -  Wachovia  Bank,  National  Association,  successor  by  merger  to
SouthTrust Bank.

     Bond  Documents -  collectively,  the Trust  Indenture  dated as of June 1,
1999,  between  Development  Authority of Gwinnett  County and SouthTrust  Bank,
National  Association;  Remarketing and Interest Services  Agreement dated as of
June 1, 1999, among Borrower, Kings Brothers,  Development Authority of Gwinnett
County and Bank (formerly SouthTrust Securities,  Inc.); Loan Agreement dated as
of June 1, 1999, among  Development  Authority of Gwinnett County,  Borrower and
Kings Brothers; and the Reimbursement Agreement.

     Bond Equipment - the equipment  described on EXHIBIT "A", all  accessories,
additions and attachments thereto, all warranties and service contracts relating
thereto and all proceeds thereof.

     Borrower - Color Imaging, Inc., a Delaware corporation.

     Borrower's  Report - the  certificate or report of Borrower  referred to in
Section 2. 1 (c) of this Agreement.

     Business  Day - a day other than  Saturday,  Sunday or a day on which banks
located in Atlanta, Georgia are authorized by law to close.

     Capitalized  Lease Obligation - any debt represented by obligations under a
lease that is required to be  capitalized  for financial  reporting  purposes in
accordance  with GAAP,  the amount of which shall be the  capitalized  amount of
such obligations determined in accordance with GAAP.

     Chattel Paper - as defined in the Code,  including Electronic Chattel Paper
and Tangible  Chattel Paper,  together with any  guaranties,  letters of credit,
Letter-of-Credit  Rights,  and other  security  therefor,  including  Supporting
Obligations.

     Code - the Uniform Commercial Code (or any successor  statute),  as adopted
and in force in the State of Georgia or, when the laws of any other state govern
the method or manner of the perfection or  enforcement of any security  interest
in any of the Collateral, the Uniform Commercial Code (or any successor statute)
of such state or jurisdiction.

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<PAGE>

     Collateral  - all property of  Borrower,  wherever  located and whether now
owned by Borrower or hereafter  acquired,  including  but not limited to (a) all
General  Intangibles;   (b)  all  Accounts;  (c)  all  Chattel  Paper;  (d)  all
Instruments  and Documents and any other  instrument or intangible  representing
payment for goods or services;  (e) all Equipment;  (f) all Investment Property;
(g) all Commercial Tort Claims; (h) all Letter-of-Credit Rights; (i) all Deposit
Accounts  and funds on deposit  therein,  including  but not limited to funds on
deposit with or under the control of Bank or its agents or  correspondents;  (j)
all parts, replacements,  substitutions,  profits, products, Accessions and cash
and  non-cash  Proceeds  and  Supporting  Obligations  of any  of the  foregoing
(including,  but not limited to,  insurance  proceeds)  in any form and wherever
located;  and (k) all  written  or  electronically  recorded  books and  records
relating to any of the foregoing and other rights relating thereto.

     Commitment  Period - shall mean that period  during which Bank is obligated
to make advances  under the  Revolving  Loan, as provided in Section 2.1 hereof.
The  Commitment  Period shall  commence upon  satisfaction  of the conditions to
lending set forth in Article III and shall continue until June 30, 2007,  unless
sooner terminated according to the provisions hereof.

     Covenant Compliance certificate - a certificate executed by or on behalf of
Borrower in the form attached here to as EXHIBIT"B".

     Credits -  collectively,  all letters of credit now or hereafter  issued by
Bank for the account of Borrower  pursuant to Section 2.2 (a), together with all
renewals thereof and substitutions therefor and the reimbursement obligations of
Borrower in regard thereto.

     Default  Rate - a rate of interest  equal to two percent  (2%) in excess of
the rate that would  otherwise be applicable  under this  Agreement,  calculated
daily and  computed on the actual days  elapsed  over a year of 360 days (unless
reference  to a 365 or a 366-day  year is  necessary  in order not to exceed the
highest rate permitted by Applicable  Law),  said rate to change as and when the
rate otherwise applicable changes.

     Eligible  Account - an Account arising in the ordinary course of Borrower's
business from the sale of goods or rendition of services which Bank, in its sole
credit  judgment,  deems  to  be  an  Eligible  Account.  Without  limiting  the
generality of the foregoing,  no Account shall be an Eligible Account if: (i) it
arises out of a sale made by  Borrower to a  Subsidiary  or to an  Affiliate  of
Borrower or to a Person controlled by an Affiliate or Subsidiary of Borrower; or
(ii) it is unpaid for more than  ninety  (90) days after the  original  due date
shown on the  invoice;  or (iii) it is due or unpaid  more than ninety (90) days
after the original  invoice date; or (iv)  twenty-five  percent (25%) or more of
the Accounts from the Account Debtor are not deemed Eligible Accounts hereunder;
or (v) the total  unpaid  Accounts  of the  Account  Debtor  exceed  twenty-five
percent  (25%)  of the  net  amount  of all  Accounts;  or  (vi)  any  covenant,
representation  or warranty  contained  in this  Agreement  with respect to such
Account has been breached;  or (vii) the Account Debtor is also Borrower's or an
Affiliate's creditor or supplier, or has disputed liability with respect to such
Account,  or has made any claim with respect to any other  Account due from such
Account Debtor to Borrower or an Affiliate,  or the Account  otherwise is or may
become  subject to any right of setoff by the Account  Debtor or an Affiliate of
the Account Debtor;  or (viii) the Account Debtor has commenced a voluntary case
under the federal bankruptcy laws, as now constituted or hereafter  amended,  or
made an assignment for the benefit of creditors, or a decree or order for relief
under the federal  bankruptcy laws has been filed against the Account Debtor, or
the Account  Debtor has failed,  suspended  business,  ceased to be Solvent,  or

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<PAGE>

consented  to or suffered a receiver,  trustee,  liquidator  or  custodian to be
appointed of it or for all or a significant portion of its assets or affairs; or
(ix) it arises from a sale to an Account  Debtor outside the United States or to
an  Account  Debtor who is not a resident  of the  United  States or  involves a
shipment to an address outside of the United States (except for Approved Foreign
Accounts,  subject to applicable limitations set forth herein); or (x) it arises
from  a  sale  to  the  Account  Debtor  on a  bill-and-hold,  guaranteed  sale,
sale-or-return,  sale-on-approval, consignment or any other repurchase or return
basis;  or (xi) Bank  believes,  in its sole judgment,  that  collection of such
Account is  insecure or that  payment  thereof is doubtful or will be delayed by
reason of the Account Debtor's financial condition;  or (xii) the Account Debtor
is the United  States of America or any  department,  agency or  instrumentality
thereof,  unless Borrower  assigns its right to payment of such Account to Bank,
in form and substance  satisfactory to Bank, so as to comply with the Assignment
of Claims Act of 1940,  as amended;  or (xiii) the Account is subject to a Lien;
or (xiv) the goods giving rise to such  Account  have not been  delivered to and
accepted by the Account Debtor or the services  giving rise to such Account have
not been performed by Borrower and accepted by the Account Debtor or the Account
otherwise does not represent a final sale; or (xv) the total unpaid  Accounts of
the  Account  Debtor  exceed  a credit  limit  determined  by Bank,  in its sole
discretion,  to the extent such Account exceeds such limit; or (xvi) the Account
is evidenced by chattel paper, a note, or an instrument of any kind, or has been
reduced to judgment;  or (xvii) Borrower has made any agreement with the Account
Debtor for any deduction therefrom, except for discounts or allowances which are
made in the ordinary  course of business for prompt payment and which  discounts
or allowances are reflected in the calculation of the face value of each invoice
related to such  Account;  or (xviii)  Borrower has made an  agreement  with the
Account  Debtor to extend  the time of  payment  thereof,  or (xix) the  Account
arises from a retail sale of goods to a Person who is purchasing  same primarily
for  personal,  family or  household  purposes;  or (xx) the  Account  is deemed
ineligible  by the  Bank in its  sole  judgment  and  discretion.  In  addition,
Eligible  Accounts shall not include any portion of an Account which consists of
service charges,  late charges or penalties,  interest or other charges relating
to the  extension  of credit by the Borrower or the timing of payment by Account
Debtor. In determining the aggregate amount of Eligible Accounts, there shall be
excluded from  consideration  any credit  balance of an Account  Debtor which is
more than 90 days old as  measured  from the date of  original  posting  of said
credit balance to Borrower's books and records.

     Eligible  Inventory  -  Inventory  valued at the  lesser of cost or current
market value,  all of which  Inventory is, at any given time, (a) not damaged or
defective in any way; (b) not sold or  segregated  for sale and  reflected as an
Account of Borrower; (c) not consigned Inventory;  (d) not  inventory-in-transit
or located in a place other than at the locations listed in Section 5.10 of this
Agreement;  (e) not work-in-process  Inventory;  (f) not constituting  packaging
materials and  supplies;  (g) not  Inventory  evidenced by negotiable  warehouse
receipts or by  non-negotiable  warehouse  receipts or  documents of title which
have not been issued in the name of Bank; (h) not subject to a document of title
such as a  warehouse  receipt or bill of lading;  and (i) not  Inventory  deemed
ineligible by Bank in its sole discretion.

     Environmental  Regulations  - all  federal,  state and local  laws,  rules,
regulations,  ordinances,  programs,  permits,  guidances,  orders  and  consent
decrees   relating  to  the   environment  or  to  public  health,   safety  and
environmental  matters,  or petroleum  products,  or radon radiation,  or oil or
hazardous substances,  including,  but not limited to, the Resource Conversation

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and Recovery Act, the  Comprehensive  Environmental  Response,  Compensation and
Liability Act of 1980,  the Toxic  Substances  Control Act, the Clean Water Act,
the Clean Air Act,  the River and Harbor Act, the Water  Pollution  Control Act,
the Marine Protection Research and Sanctuaries Act, the Deep-Water Port Act, the
Safe Drinking  Water Act, the Superfund  Amendments and  Reauthorization  Act of
1986, the Federal Insecticide,  Fungicide and Rodenticide Act, the Mineral Lands
and  Leasing  Act,  the Surface  Mining  Control and  Reclamation  Act,  the Oil
Pollution Act of 1990,  state and federal  superlien and  environmental  cleanup
programs and laws, U.S. Department Transportation  regulations,  laws regulating
hazardous,  radioactive and toxic materials and underground  petroleum  products
storage tanks, and all similar state, federal and local laws and regulations.

     Equipment - as defined in the Code and including,  without limitation,  all
equipment  and  fixtures  of  whatever  kind or nature  now  owned or  hereafter
acquired by Borrower,  including,  without limitation, all machinery,  vehicles,
tools,  dies,  trade  fixtures,  furnishings  and equipment,  patterns,  cranes,
furniture,  furnishings,  motor  vehicles,  tractors,  trailers,  rolling stock,
office  machines  and  equipment,  material  handling  equipment,  manufacturing
equipment, conveyors, forklifts, machine systems, computers, and all other goods
used in the operation of  Borrower's  business,  together with all  accessories,
parts and  additions  now or  hereafter  affixed  thereto or used in  connection
therewith.

     ERISA - the Employee  Retirement  Income Security Act of 1974 and all rules
and regulations promulgated thereunder.

     Event of Default - any one of the events enumerated in Section 10.1 hereof.
First Term Loan - the term loan in the  maximum  principal  amount of up to Five
Hundred  Thousand Dollars  ($500,000)  evidenced by the First Term Note (and any
substitutions therefor, extensions thereof and renewals thereof).

     First Term Note - the First Term Note dated as of the date hereof  executed
by  Borrower  for the benefit of Bank in the  maximum  principal  amount of Five
Hundred  Thousand  Dollars  ($500,000),  together  with  and  any  substitutions
therefor, extensions thereof and renewals thereof.

     Fixed Charge Coverage Ratio - net income plus  depreciation,  amortization,
interest  expense,  income tax expense (or any dividends made for the income tax
liabilities of Borrower's principals) and operating lease expense (as defined by
FAS 13), divided by the current portion of the long-term debt (including but not
limited to  Subordinated  Debt) of Borrower as of the  applicable  date plus the
interest  expense,  income tax expense (or any dividends made for the income tax
liabilities of Borrower's principals) and operating lease expense (as defined by
FAS 13) of Borrower for the twelve  (12)-month  period  preceding the applicable
date.

     GAAP - generally  accepted  accounting  principles  in the United States of
America in effect from time to time consistently applied.

     General  Intangibles  - as  defined  in the Code,  and  including,  without
limitation,  general  intangibles  of  Borrower,  whether now owned or hereafter
created or  acquired  by  Borrower,  including  all choses in action,  causes of
action,  company or other business  records,  inventions,  blueprints,  designs,
patents, patent applications,  trademarks,  trademark applications, trade names,
trade secrets, service marks, goodwill, brand names, copyrights,  registrations,

                                       5
<PAGE>

licenses,  franchises,  customer  lists,  permits,  tax refund claims,  computer
programs,  operational manuals,  internet addresses and domain names,  insurance
refunds and premium rebates, all claims under guaranties,  security interests or
other security held by or granted to Borrower to secure payment of any of any of
Borrower's  Accounts by an Account Debtor, all rights to indemnification and all
other  intangible  property  of  Borrower  of every kind and nature  (other than
Accounts).

     Going Private  Transaction - the "going private"  transaction  described in
and contemplated by Form 8-K filed by Borrower with the United States Securities
and Exchange Commission, dated April 19, 2005, and bearing SEC File # 1-16450.

     Inventory - as defined in the Code and including,  without limitation,  all
Inventory  of  whatever  kind or nature  of  Borrower,  now  owned or  hereafter
acquired by Borrower, and wherever located,  including,  without limitation, all
goods held for sale or lease or furnished or to be  furnished  under  contracts,
and any raw  materials,  goods in transit,  work in process or  finished  goods,
supplies,  returned or repossessed goods,  together with all goods and materials
used or consumed in Borrower's business.

     Inventory  Cap - $ 1,500,000,  said amount being the maximum value that can
be given to the Loan Value of Inventory pursuant to this Agreement.

     Kings Brothers - King Brothers, LLC, a Georgia limited liability company.

     Liabilities  - the sum of (i)  indebtedness  for borrowed  money or for the
deferred  purchase  price  of  property  or  services,  (ii)  Capitalized  Lease
Obligations  and (iii) all other  items which in  accordance  with GAAP would be
included  in  determining  total  liabilities  as shown on a balance  sheet of a
Person as of the date as of which Liabilities is to be determined.

     LIBOR  Market  Index Rate - for any day,  the rate for 1 month U.S.  dollar
deposits as reported on Telerate  page 3750 as of 11:00 a.m.,  London  time,  on
such day,  or if such day is not a London  business  day,  then the  immediately
preceding London business day (or if not so reported, then as determined by Bank
from another recognized source or interbank quotation).

     Lien - any interest in property (real,  personal or mixed,  and tangible or
intangible)  securing an obligation  owed to, or a claim by, a Person other than
the owner of the  property,  whether  such  interest is based on the common law,
statute or contract,  and including,  but not limited to, the security interest,
security  title or lien arising  from a security  agreement,  mortgage,  deed of
trust,  deed to secure  debt,  encumbrance,  pledge,  conditional  sale or trust
receipt or a lease,  consignment  or bailment  for security  purposes.  The term
"Lien"  shall  include  covenants,  conditions,  restrictions,  leases and other
encumbrances affecting any property. For the purpose of this Agreement, Borrower
shall be deemed to be the owner of any  property  which it has acquired or holds
subject to a conditional sale agreement or other  arrangement  pursuant to which
title to the  property  has been  retained by or vested in some other Person for
security purposes.

     Loan Account - the loan account  established  on the books of Bank pursuant
to Section 2.1 hereof.

                                       6
<PAGE>

     Loan  Documents - this  Agreement,  the Notes and each and every  mortgage,
deed of  trust,  guarantee,  reimbursement  agreement,  credit  agreement,  loan
agreement,  note,  security  agreement,  financing statement or other instrument
executed  and  delivered  to  evidence  or secure  the Loans or any other of the
Obligations,  to  constitute  collateral  for  the  Loans  or any  other  of the
Obligations,  or to  evidence  security  for  the  Loans  or  any  other  of the
Obligations,  and any and  all  other  agreements,  instruments,  and  documents
heretofore,  now or  hereafter  executed by Borrower  and  delivered  to Bank in
respect to the transactions contemplated by this Agreement.

     Loan Value of Accounts - at any time,  an amount which is not more than 75%
of the aggregate Eligible Accounts of Borrower,  provided that the Loan Value of
Accounts  attributable  to  Approved  Foreign  Accounts  shall at no time exceed
thirty-three percent (33%) of the outstanding principal balance of the Revolving
Loan and that Bank shall not advance in regard to any Approved  Foreign  Account
an amount  greater  than,  as  applicable,  the insured  amount of the  Approved
Foreign  Account  or the face  amount of the letter of credit  approved  by Bank
regarding such Approved Foreign Account. .

     Loan  Value  of  Inventory  - an  amount  which  is not  more  than  50% of
Borrower's Eligible Inventory  consisting of raw materials and 50% of Borrower's
Eligible Inventory  consisting of finished goods;  provided,  however,  the Loan
Value of Inventory  shall not at any time exceed the lesser of the Inventory Cap
or fifty percent (50%) of the Aggregate Loan Values.

     Loans -  collectively,  the  Revolving  Loan,  the First  Term Loan and the
Second Term Loan.

     Maximum  Rate - the  maximum  non-usurious  rate of interest  permitted  by
Applicable  Laws that at any time, or from time to time, may be contracted  for,
taken,  reserved,  charged or received on the debt in question or, to the extent
permitted by Applicable  Laws,  under such Applicable Laws that may hereafter be
in effect  and which  allow a higher  maximum  non-usurious  interest  rate than
Applicable  Laws now allow.  Notwithstanding  any other  provision  hereof,  the
Maximum Rate shall be calculated on a daily basis (computed on the actual number
of days elapsed over a year of 365 or 366 days, as the case may be).

     Multiemployer  Plan - has the meaning set forth in Section  4001 (a) (3) of
ERISA.

     Notes -  collectively,  the  Revolving  Note,  the First  Term Note and the
Second Term Note.

     Obligations - the Loans, Borrower's  reimbursement and other obligations as
to any and all Credits and under the Standby Credit Facility, all obligations of
Borrower under the Bond Documents, and all other advances,  debts,  liabilities,
obligations,  covenants and duties owing,  arising, due or payable from Borrower
to Bank of any kind or nature,  present or future,  whether or not  evidenced by
any note, guaranty or other instrument,  whether arising under this Agreement or
any of the other  Loan  Documents  or  otherwise,  whether  direct  or  indirect
(including  those acquired by  assignment),  absolute or contingent,  primary or
secondary,  due or to become due, now existing or hereafter  arising and however
evidenced or acquired.  The term  includes,  without  limitation,  all interest,
charges,  expenses,  fees,  attorneys'  fees and any other  sums  chargeable  to
Borrower  under any of the Loan Documents and all rights Bank may at any time or
times have to  reimbursement in connection with any letter of credit or guaranty
issued for Borrower's benefit.

                                       7
<PAGE>

     Overadvance - an advance by Bank hereunder or under the Revolving Note when
an Overadvance Condition exists or would result from the making of such advance.

     Overadvance  Condition - at any date, a condition such that the outstanding
principal  amount of the  Revolving  Loan on such  date  exceeds  the  lesser of
$3,000,000 or the Aggregate Loan Values on such date.

     Permitted  Liens - any  Lien of a kind  specified  in  Section  7.2 of this
Agreement.

     Person - an  individual,  partnership,  corporation,  joint stock  company,
firm, land trust,  business trust, limited liability company,  limited liability
partnership,  unincorporated  organization,  or  other  business  entity,  or  a
government or agency or political subdivision thereof.

     Plan - an employee  benefit plan now or hereafter  maintained for employees
of Borrower that is covered by Title IV of ERISA.

     Prohibited  Transaction - any transaction set forth in Section 406 of ERISA
or Section 4975 of the Internal Revenue Code of 1986.

     Reimbursement Agreement - Reimbursement Agreement dated as of June 1, 1999,
among Borrower, Kings Brothers and Bank, as amended.

     Reportable Event - any of the events set forth in Section 4043(b) of ERISA.

     Revolving Loan - the revolving loan in the maximum  principal  amount of up
to  $3,000,000  advanced  by the  Bank  to the  Borrower  and  evidenced  by the
Revolving Note (and any substitutions therefor,  extensions thereof and renewals
thereof).

     Revolving Note - the Second Amended and Restated Revolving Note dated as of
the date  hereof  executed  by  Borrower  for the benefit of Bank in the maximum
principal  amount of Three Million Dollars  ($3,000,000),  together with and any
substitutions therefor, extensions thereof and renewals thereof.

     Second Term Loan - the term loan in the maximum  principal  amount of up to
Five Hundred Thousand Dollars ($500,000)  evidenced by the Second Term Note (and
any substitutions therefor, extensions thereof and renewals thereof).

     Second  Term  Note - the  Second  Term  Note  dated as of the  date  hereof
executed by Borrower for the benefit of Bank in the maximum  principal amount of
Five Hundred Thousand Dollars  ($500,000),  together with and any  substitutions
therefor, extensions thereof and renewals thereof.

     Solvent - as to any  Person,  means such  Person (i) owns  property,  real,
personal,  and mixed, the aggregate fair saleable value of which is greater than
the  amount  required  to  pay  all  of  such  Person's  Liabilities  (including
contingent  debts),  (ii)  is  able  to  pay  all  of its  Liabilities  as  such
Liabilities mature and (iii) has capital sufficient to carry on its business and
transactions and all business and transactions in which it is about to engage.

     Standby  Credits-  collectively,  all  letters of credit  now or  hereafter
issued by Bank for the account of  Borrower  pursuant to Section 2.2 (b) for the

                                       8
<PAGE>

benefit of foreign vendors, together with all renewals thereof and substitutions
therefor and the reimbursement obligations of Borrower in regard thereto.

     Subordinated  Debt - the  Liabilities  of the Borrower owed to any officer,
owner or employee of Borrower or to any Affiliate which is fully subordinated to
the Loans  (including  principal,  interest,  and  agreed  charges)  in a manner
satisfactory  to the Bank  (which  may be  either  according  to its terms or by
separate  agreement)  and which  Liabilities  arise from the  Borrower's  actual
receipt of cash and not from "in kind" or non-cash consideration.

     Subsidiary - any corporate entity or partnership, or other business entity,
controlling interest of which is owned by the Borrower.

     Tangible  Net Worth - for any period,  net worth in  accordance  with GAAP,
plus Subordinated Debt less intangible assets, which include goodwill,  patents,
trademarks  organizational  costs,  capitalized  financing costs and amounts due
from officers, shareholders or Affiliates.

     Traditional  Leverage - the ratio of Liabilities less  Subordinated Debt to
Tangible Net Worth.

     USA  Patriot  Act - the  Uniting  and  Strengthening  America by  Providing
Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT) Act
of 2001, as amended.

     1.2.  ACCOUNTING TERMS. All accounting terms used herein shall be construed
in accordance with GAAP.

     1.3.  INTERPRETATION.  The terms "herein",  "hereof,  and "hereunder",  and
other words of similar  import refer to this Agreement as a whole and not to any
particular section, paragraph or subdivision.  Any pronouns used shall be deemed
to cover all genders.  Whenever the singular or plural number is used herein, it
shall  equally  include  the other.  All  references  to  statutes  and  related
regulations shall include any amendments of same and any successor  statutes and
regulations. All references to any instruments or agreements, including, without
limitation,  references to any of the Loan  Documents  shall include any and all
modifications  or  amendments  thereto  and any and all  extensions  or renewals
thereof.

     1.4.  UNIFORM  COMMERCIAL  CODE. All  capitalized  terms  contained in this
Agreement shall, unless otherwise defined herein or unless the context otherwise
indicates, have the meanings provided for by the Code.

     1.5 USA  PATRIOT ACT NOTICE.  To help fight the  funding of  terrorism  and
money laundering activities,  Federal law requires all financial institutions to
obtain,  verify, and record information that identifies each Person who opens an
account.  For purposes of this  section,  account shall be understood to include
loan accounts.

                                   ARTICLE II
                                    THE LOANS

     2.1. REVOLVING LOAN.

                                       9
<PAGE>

     (a) Subject to all terms set forth  herein but only  during the  Commitment
Period and for so long as no Event of Default exists,  Bank agrees, from time to
time and on the terms hereinafter set forth, to loan to Borrower, when requested
by Borrower,  principal  amounts under the Revolving Loan  aggregating up to the
lesser of (i)  $3,000,000 or (ii) the Aggregate Loan Values as determined by the
Bank from the periodic  reports  submitted  by Borrower to the Bank.  Within the
aforesaid limits, the Borrower may borrow, make payments, and reborrow under the
Revolving  Loan,  subject  to the  provisions  hereof.  Advances  made under the
Revolving Loan shall be subject to the Revolving Note.

     (b) The  obligation to repay the  Revolving  Loan shall be evidenced by the
Revolving Note payable to the order of the Bank and maturing upon the earlier to
occur of an Event of Default or the expiration of the Commitment Period. Amounts
due under the Revolving  Note and otherwise  under this  Agreement and under the
Loan  Documents in regard to the  Revolving  Loan shall be reflected in the Loan
Account.

     (c) Borrower shall submit a Borrower's  Report in the form attached  hereto
as EXHIBIT "C" (or in such other form as may be  furnished  by Bank from time to
time)  quarterly  (or on such other  schedule as Bank may  request  from time to
time)  during  the term of this  Agreement.  Bank may,  in its sole  discretion,
require  that  each  advance  made  under  the  Revolving  Loan be  effected  by
Borrower's  submitting (and the Bank's  receiving) a Borrower's  Report at least
one Business Day prior to the date Borrower desires the advance to be made. Bank
shall,  if all the  terms  and  provisions  of this  Agreement  have  been  met,
including,  without  limitation,  the absence of an Event of Default  hereunder,
make such advances. Each such Borrower's Report shall be signed by an officer or
employee of Borrower  authorized  by Borrower  to execute  such  reports,  whose
name(s) shall be included in a certificate furnished to the Bank.

     (d) At its  discretion,  Bank may  make  advances  to  Borrower  under  the
Revolving  Loan  without  specific   request  by  automatic   advance  based  on
availability in accordance with procedures  established by Bank. In addition, as
an accommodation to Borrower,  Bank may permit telephonic  requests for advances
under  the  Revolving   Loan  and  electronic   transmittal   of   instructions,
authorizations,  agreements  or reports  to Bank by  Borrower.  Unless  Borrower
specifically  directs  Bank in writing not to accept or act upon  telephonic  or
electronic  communications  from  Borrower,  Bank  shall  have no  liability  to
Borrower  for any loss or  damage  suffered  by  Borrower  as a result of Bank's
honoring of any  requests,  execution  of any  instructions,  authorizations  or
agreements or reliance on any reports  communicated  to Bank  telephonically  or
electronically  and  purporting  to have been sent to Bank by Borrower  and Bank
shall  have no duty to  verify  the  origin  of any  such  communication  or the
authority of the person sending it.

     (e) If the outstanding  principal  amount of the Revolving Loan at any time
exceeds the lesser of $3,000,000  or the  Aggregate  Loan Values as reflected on
the Borrower's Report, the Borrower shall immediately,  upon demand by Bank, pay
the Bank an amount equal to such excess as a payment on the principal  amount of
the Revolving  Loan.  Without  limiting the  foregoing,  which  provision may be
enforced  by  Bank at any  time  and  which  provision,  as  well  as the  other
provisions  hereof,  may not under any  circumstance  be waived or  altered by a
course of dealing or otherwise,  insofar as Borrower may request and Bank may be
willing in its sole and absolute  discretion  to make  Overadvances,  Bank shall

                                       10
<PAGE>

enter such Overadvances as debits in the Loan Account. All Overadvances shall be
payable on demand, shall be secured by the Collateral and shall bear interest as
provided in this  Agreement for the Revolving  Loan  generally.  Bank may in its
sole discretion honor any request (or deemed request) for an advance even though
an  Overadvance  Condition  then exists,  or would exist with the making of such
advance,  and  without  regard to the  existence  of, and without  waiving,  any
default or Event of Default.

     (f) Each borrowing  under the Revolving Loan shall be effected by crediting
the amount thereof to the regular checking  account of Borrower  maintained with
the Bank.

     (g) The  principal  amount of the  Revolving  Loan shall bear interest at a
rate per annum equal to the LIBOR Market Index Rate plus one hundred eighty-five
(185)  basis  points.  Interest  shall  be paid to  Bank  on the  amount  of the
Revolving Loan  outstanding and shall be payable monthly in arrears on the first
day of each month  beginning  with November 1, 2005,  and continuing on the same
day of each month  thereafter  through  and until such time as there  remains no
unpaid principal balance on the amounts advanced to the Borrower. Interest shall
be  calculated  based on a 360-day year (i.e.,  computed on the actual number of
days elapsed over a year of 360 days unless reference to a 365 or a 366-day year
is  necessary in order not to exceed the highest  rate  permitted by  Applicable
Laws). The applicable  LIBOR Market Index Rate shall be initially  calculated on
the date of  initial  applicability  and shall be  recalculated  by Bank on each
regularly-scheduled   payment  date   thereafter,   notwithstanding   that  such
recalculation  date is more or less than  thirty  (30)  days  from the  previous
calculation date. If the  recalculation  date falls on a date upon which Bank is
not open for business, the recalculation shall occur on the next business day on
which Bank is open for  business.  From and after the  occurrence of an Event of
Default,  the principal  amount of the Revolving Loan  outstanding  from time to
time shall,  subject to the  provisions of Section  12.16,  bear interest at the
Default Rate.

     (h) Bank shall enter  disbursements  under the Revolving  Loan as debits to
the Loan Account and shall also record in the Loan Account all payments  made by
Borrower and all proceeds of Collateral which are finally paid to Bank in regard
to the Revolving  Loan,  and may record  therein,  in accordance  with customary
accounting  practice,  all charges and expenses properly  chargeable to Borrower
hereunder in regard to the Revolving Loan.

     (i)  Borrower  shall use the  proceeds  of the  Revolving  Loan for working
capital purposes only.

     (j) Notwithstanding  any provision in this Agreement,  the Bank may, in its
sole discretion,  at any time limit the amount of the Revolving Loan advanced to
the Borrower to an amount less than the lesser of  $3,000,000  or the  Aggregate
Loan Values. The Revolving Loan shall,  notwithstanding any course of dealing or
conduct  on  the  part  of  the  parties  hereto,  or  any  other  covenants  or
undertakings of the parties hereunder,  be fully due and payable without further
notice or demand from Bank upon the expiration of the Commitment Period.

     (k) As a condition to the first advance under the Revolving Loan,  Borrower
shall notify Bank of Borrower's  intention to request such advance not less than
three (3) Business  Days prior  thereto.  The notice shall be  accompanied  by a
current Borrower's Certificate and Covenant Compliance Certificate.

                                       11
<PAGE>

     2.2 CREDITS;  STANDBY CREDITS.  SECURITY  INTEREST IN COLLATERAL.  Bank may
hereafter, at the request of and for the account of Borrower,  issue Credits and
Standby  Credits,  subject  to and in  accordance  with the  provisions  of this
Section 2.2.  Borrower's  reimbursement  obligations in regard to all Credits at
all times shall be secured by the Collateral.

     (a) Upon the request of Borrower from time to time,  provided that Borrower
shall not be in default  under  this  Agreement,  Bank  shall  issue one or more
Credits;  provided  that  (i) the  form  of  each  Credit,  the  transaction  in
connection with which the Credit is issued and all other matters relating to the
Credit  shall be  satisfactory  to Bank in its sole  discretion;  (ii) no Credit
shall be issued if, after  issuance  thereof,  the sum of the  aggregate  amount
available  to be drawn  under  all  Credits,  plus the  aggregate  amount of any
unreimbursed drawings under Credits,  would exceed Five Hundred Thousand Dollars
($500,000);  (iii) no Credit shall be issued if, after issuance thereof, the sum
of the  aggregate  amount  available  to be drawn  under all Credits and Standby
Credits,  plus the aggregate amount of any  unreimbursed  drawings under Credits
and Standby Credits,  plus the principal amount  outstanding under the Revolving
Loan  (excluding  Credits  and  Standby  Credits)  would  exceed  the  lesser of
$3,000,000  or the Aggregate  Loan Values;  (iv) no Credit shall have an initial
term longer  than one year;  (v) if any Credit has an expiry date later than the
expiration date of the Commitment  Period,  Borrower  shall,  not later than the
expiration date of the Commitment Period deposit with Bank cash in an amount not
less than the face amount of the Credit to be held by Bank, without interest, as
additional  security for Borrower's  reimbursement  obligations in regard to the
Credit and execute and deliver in regard  thereto  such  documents as Bank shall
reasonably require;  and (vi) Borrower shall pay to Bank annually as invoiced by
Bank  a fee  equal  to one  percent  (1 %) of the  sum of the  aggregate  amount
available  to be drawn  under  all  Credits,  plus the  aggregate  amount of any
unreimbursed  drawings under Credits. Bank shall be entitled to reimburse itself
from the cash  deposit  identified  in (v) above for any draw made  against  the
Credit.  Bank shall return the cash deposit to Borrower upon cancellation of the
Credit  without  any draw  having been made  thereon,  provided  that no default
exists under this Agreement.

     (b) Upon the request of Borrower from time to time,  provided that Borrower
shall not be in default  under  this  Agreement,  Bank  shall  issue one or more
Standby Credits for the benefit of foreign  vendors,  provided that (i) the form
of each Standby  Credit,  the  transaction in connection  with which the Standby
Credit is issued and all other matters  relating to the Standby  Credit shall be
satisfactory  to Bank in its sole  discretion;  (ii) no Standby  Credit shall be
issued if, after issuance thereof,  the sum of the aggregate amount available to
be  drawn  under  all  Standby  Credits,   plus  the  aggregate  amount  of  any
unreimbursed  drawings under Standby  Credits,  would exceed One Million Dollars
($1,000,000);  (iii) no  Standby  Credit  shall be  issued  if,  after  issuance
thereof, the sum of the aggregate amount available to be drawn under all Credits
and Standby  Credits,  plus the aggregate  amount of any  unreimbursed  drawings
under Credits and Standby Credits,  plus the principal amount  outstanding under
the Revolving  Loan  (excluding  Credits and Standby  Credits)  would exceed the
lesser of $3,000,000 or the Aggregate  Loan Values;  (iv) if any Standby  Credit
has an expiry  date later than the  expiration  date of the  Commitment  Period,
Borrower  shall,  not later than the expiration  date of the  Commitment  Period
deposit with Bank cash in an amount not less than the face amount of the Standby
Credit  to be held  by  Bank,  without  interest,  as  additional  security  for
Borrower's reimbursement obligations in regard to the Standby Credit and execute
and deliver in regard thereto such documents as Bank shall  reasonably  require;
and (v) Borrower  shall pay to Bank  annually as invoiced by Bank a fee equal to
one percent (1 %) of the sum of the aggregate amount available to be drawn under
all Standby  Credits,  plus the aggregate  amount of any  unreimbursed  drawings

                                       12
<PAGE>

under  Standby  Credits,  or such fee as is  quoted by Bank in  connection  with
Borrower's  application  for the issuance of the Standby  Credit.  Bank shall be
entitled to reimburse itself from the cash deposit  identified in (iv) above for
any draw made against the Standby Credit.  Bank shall return the cash deposit to
Borrower  upon  cancellation  of the Credit  without  any draw  having been made
thereon,  provided that no default exists under this  Agreement.  Borrower shall
execute and  deliver  such  additional  documentation  as Bank shall  require in
regard to any Standby Credit.

     (c)  Borrower  hereby  affirms its  obligation,  and hereby  covenants  and
agrees, to pay Bank, in United States currency, the amount of each drawing under
the  Credits and Standby  Credits,  together  with  interest,  commissions,  all
customary charges,  and all other  disbursements or payments by Bank pursuant to
the Credits,  the Standby Credits or this Agreement,  such payment to be made on
demand with interest at the rate specified herein from the date of payment under
the Credits or Standby  Credits to the date of payment by Borrower to Bank. If a
drawing is payable in foreign currency, Borrower will pay Bank the equivalent of
the amount of such  drawing in United  States  currency,  at Bank's then selling
rate for  cable  transfers,  to the place of  payment  or to the place of Bank's
settlement  of its  obligation,  as Bank  may  require.  If  there is no rate of
exchange for effecting such cable transfer, Borrower will pay Bank on demand the
amount in United States currency equivalent to Bank's actual cost of settlement,
with per  annum  interest  at the  interest  rate  effective  in  regard  to the
Revolving  Loan from time on the amount in United  States  currency,  payable by
Borrower from the date of  settlement  to the date of payment by Borrower.  Bank
shall be entitled to pay and reimburse  itself from the  Collateral for any draw
made against any Credit or any Standby  Credit and any other charges or interest
payable by Borrower hereunder.

     (d) Borrower  agrees to defend,  indemnify  and hold harmless Bank from and
against any and all suits, claims, losses,  liabilities,  or damages,  including
reasonable  attorneys'  fees  actually  incurred,  howsoever  arising from or in
connection  with  the  Credits  or  Standby  Credits.  The  agreements  in  this
subparagraph  "(d)"  will  survive  any  payment  under or  termination  of this
Agreement.  Borrower  will pay Bank on demand all charges,  costs and  expenses,
including  reasonable  attorneys'  fees,  incurred or paid by Bank in connection
with  the  exercise  of  any  right,  power,  or  remedy  hereunder,  or in  the
enforcement thereof.  Bank shall in no way be responsible for performance by any
beneficiary  of any of the  Credits  or Standby  Credits  of such  beneficiary's
obligations   to  Borrower,   nor  for  the  form,   sufficiency,   correctness,
genuineness,  authority of person signing,  falsification or legal effect of any
documents  called for under the Credits or Standby  Credits if such documents on
their  face  appear  to be in  order.  It is  agreed  that  all  directions  and
correspondence  relating to the  Credits  and Standby  Credits are to be sent at
Borrower's  risk and  that  Bank  does not  assume  any  responsibility  for any
inaccuracy,  interruption,  error or delay in transmission, or delivery by post,
telegraph,  cable or courier, or for any inaccuracy of translation.  Bank is not
and shall not be under any  obligation to extend the  expiration  date of any of
the Credits or Standby  Credits  beyond their stated  expiry  dates,  whether by
virtue of the execution and delivery of this Agreement or otherwise.

     (e) Borrower hereby authorizes Bank to (i) select an advising bank, if any,
(ii) authorize or restrict  negotiation under the Credits or Standby Credits and
(iii) waive any such  restriction on  negotiation.  Bank may honor, as complying
with the terms of the Credits and Standby Credits, any drafts or other documents

                                       13
<PAGE>

otherwise in order signed or issued by an administrator,  executor, conservator,
trustee in bankruptcy, debtor in possession,  assignee for benefit of creditors,
liquidator,  receiver,  or other legal  representative  of the party  authorized
under the  Credits  or Standby  Credits  to draw or issue  such  drafts or other
documents.  Bank's rights,  powers, and remedies specified herein are cumulative
and are in addition to those otherwise created or existing by law or agreement.

     (f) If Bank shall in good faith deem itself  insecure at any time,  or upon
the occurrence of an Event of Default, Bank may, in addition to any other rights
and remedies at law, or in equity or under this Agreement,  require  Borrower to
deliver to Bank,  to be held and treated as  additional  Collateral,  additional
property equal in amount or value to one hundred  twenty-five  percent (125%) of
the Credits and Standby  Credits,  and  Borrower  shall  promptly  execute  such
documentation in regard thereto as Bank shall require.

     (g) Any Credit or Standby  Credit issued  hereunder  shall be governed,  as
applicable,  by  the  Uniform  Customs  and  Practice  for  Documentary  Credits
International  Chamber of Commerce  ("ICC")  Publication  500 or any  subsequent
revision  or  restatement  thereof  adopted by the ICC and in use by Bank or the
International  Standby  Practices,  ICC  Publication  No. 590 or any  subsequent
revision or restatement thereof adopted by the ICC and in use by Bank, except to
the extent that the terms of such  publication  would  limit or diminish  rights
granted  to  Bank  hereunder  or in any  other  Loan  Document.  Subject  to the
immediately  preceding sentence,  this Agreement is made in Georgia and shall be
deemed to be a contract under seal to be governed by and construed in accordance
with the laws of the State of Georgia.

     (h) The  obligations of Borrower  under this  Agreement  shall be absolute,
unconditional  and irrevocable and shall be paid strictly in accordance with the
terms of this  Agreement,  under all,  and  notwithstanding  any,  circumstances
whatsoever, including, without limitation, the following:

     (i) any lack of  validity  or  enforceability  of the  Credits  or  Standby
Credits;

     (ii) any amendment or waiver of, or any departure  from the terms of all or
any of the Credits or Standby Credits;

     (iii) the  existence of any claim,  set-off,  defense or other rights which
Borrower  may  have at any  time  against  any  person  or  entity,  whether  in
connection  this Agreement,  the Credits,  the Standby Credits or any related or
unrelated transaction;

     (iv) any statement or any other document presented under any of the Credits
or Standby Credits proves to be forged,  fraudulent,  invalid or insufficient in
any respect or any  statement  therein  proves to be untrue or inaccurate in any
respect whatsoever;

     (v)  payment by Bank under any of the  Credits or Standby  Credits  against
presentation  of a draft or certificate  which does not comply with the terms of
the Credit or Standby Credit,  provided such payment shall not have  constituted
gross negligence or willful misconduct by Bank; and

                                       14
<PAGE>

     (vi) any other circumstance or happening whatsoever, whether or not similar
to any of the  foregoing,  provided  the same shall not have  constituted  gross
negligence or willful misconduct by Bank

     2.3 FIRST TERM LOAN.

     (a) Upon the  execution of this  Agreement and provided that Borrower is in
compliance with its terms and  conditions,  Borrower shall borrow from Bank, and
Bank shall make to  Borrower,  upon the terms and  conditions  set forth in this
Agreement and in the First Term Note, the First Term Loan.

     (b)  Proceeds of the First Term Loan shall be used to fund the  purchase of
new capital  assets or to pay  scheduled  amortization  payments  under the Bond
Documents.  All  equipment  must be  classified  as a fixed asset on  Borrower's
balance  sheet,  be located at the locations set forth in the Loan Documents and
otherwise comply with this Agreement.

     (c) The First Term Loan shall at no time exceed the lesser of the following
applicable amounts:

     (i) $500,000 in the aggregate; or

     (ii) the sum equal to  eighty  percent  (80%) of the cost of new  equipment
acquired with proceeds of the First Term Loan and deemed  eligible by Bank, less
all "soft" costs, including but not limited taxes,  licenses,  freight costs and
registration  fees,  plus  amounts  advanced  under the  First  Term Loan to pay
scheduled amortization payments under the Bond Documents.

     (d) The  principal  amount of the First Term Loan shall bear  interest at a
rate per annum equal to the LIBOR Market Index Rate plus one hundred eighty-five
(185) basis points.  Interest shall be calculated based on a 360-day year (i.e.,
computed  on the actual  number of days  elapsed  over a year of 360 days unless
reference  to a 365 or a 366-day  year is  necessary  in order not to exceed the
highest rate permitted by Applicable  Laws).  The applicable  LIBOR Market Index
Rate shall be  initially  calculated  on the date of initial  applicability  and
shall  be  recalculated  by  Bank  on  each  regularly-scheduled   payment  date
thereafter,  notwithstanding  that such  recalculation date is more or less than
thirty (30) days from the previous  calculation date. If the recalculation  date
falls on a date upon  which  Bank is not open for  business,  the  recalculation
shall occur on the next  business day on which Bank is open for  business.  From
and after the  occurrence of an Event of Default,  the  principal  amount of the
First Term Loan outstanding  from time to time shall,  subject to the provisions
of Section 12.16, bear interest at the Default Rate.

     (e) Interest shall be paid to Bank on the outstanding  principal  amount of
the First Term Loan and shall be payable  monthly in arrears on the first day of
each month  beginning  with November 1, 2005,  and continuing on the same day of
each month thereafter  through and including July 1, 2006.  Commencing on August
1, 2006, and continuing on the first (1st) day of each calendar month thereafter
through and including July 1, 2011, the principal amount  outstanding  under the
First  Term Loan as of June 30,  2006,  shall be  payable  in sixty  (60)  equal
monthly installments,  with all remaining principal due and payable in full with
the sixtieth (60th) payment.  Accrued  interest shall be due and payable on each

                                       15
<PAGE>

date  that a  payment  of  principal  is  due  and  payable.  Bank  may,  at its
discretion,  require  updated  appraisals  of  Borrower's  capital  assets  as a
condition  to any  advance (a "First  Term Loan  Advance")  under the First Term
Loan.

     (f) Borrower may request First Term Loan Advances from time to time through
June 30,  2006.  Each  request by Borrower for a First Term Loan Advance will be
supported by such information and documents (including invoices, receipts, bills
of lading, appraisals and other due diligence) as Bank may request and the terms
and conditions of each  acquisition,  financing or refinancing to be financed by
any First Term Loan Advance  must be  satisfactory  in all material  respects to
Bank.  Without limiting the generality of the foregoing,  and in addition to the
other  conditions  precedent set forth in this  Agreement,  each First Term Loan
Advance shall be subject to Borrower's providing to Bank, if required by Bank, a
written  report  of  examination  of  the  Uniform   Commercial  Code  financing
statement,  tax lien,  judgment  lien and suits  pending  indexes of such public
offices  and  conducted  under such  current  and past  names as are  determined
necessary  by Bank to assure  that it is  receiving  a  first-priority  security
interest in the equipment constituting Collateral, which reports must be in form
and substance  satisfactory  to Bank.  Bank shall be entitled to file and record
such financing statements and other security instruments as Bank shall determine
to  perfect  its  security  interest  in  any  and  all  equipment  constituting
Collateral.  Bank  may,  at  its  discretion,   require  updated  appraisals  of
Borrower's capital assets as a condition to any First Term Loan Advance.

     (g) If during the term hereof prior to June 30, 2006, the Average Quarterly
Loan Balance  outstanding under the First Term Loan for any quarter is less than
$500,000,  then  Borrower  will  immediately  pay to Bank,  in  addition  to any
interest  and other  fees and sums due under this  Agreement  and under the Loan
Documents,  an amount  equal to (a)  $500,000  less the Average  Quarterly  Loan
Balance for the quarter,  multiplied  by 0.025%.  The charge due pursuant to the
terms of this paragraph  shall be payable  quarterly,  in arrears.  In no event,
however,  shall  any  charge  be  payable  for any  quarter  during  which  Bank
accelerates  maturity  of  the  First  Term  Loan  or  demands  payment  of  the
Obligations by reason of the occurrence of any Event of Default or otherwise.

     2.4 SECOND TERM LOAN.

     (a) On or after July 1, 2006,  and provided  that Borrower is in compliance
with the terms and  conditions  of this  Agreement,  Borrower  shall borrow from
Bank,  and Bank shall make to Borrower,  upon the terms and conditions set forth
in this Agreement and in the Second Term Note, the Second Term Loan.

     (b)  Proceeds of the Second Term Loan shall be used to fund the purchase of
new capital  assets or to pay  scheduled  amortization  payments  under the Bond
Documents.  All  equipment  must be  classified  as a fixed asset on  Borrower's
balance  sheet,  be located at the locations set forth in the Loan Documents and
otherwise comply with this Agreement.

     (c) The  Second  Term  Loan  shall  at no time  exceed  the  lesser  of the
following applicable amounts:

     (i) $500,000 in the aggregate; or

                                       16
<PAGE>

     (ii) the sum equal to  eighty  percent  (80%) of the cost of new  equipment
acquired with proceeds of the Second Term Loan and deemed eligible by Bank, less
all "soft" costs, including but not limited taxes,  licenses,  freight costs and
registration  fees,  plus  amounts  advanced  under the Second  Term Loan to pay
scheduled amortization payments under the Bond Documents.

     (d) The  principal  amount of the Second Term Loan shall bear interest at a
rate per annum equal to the LIBOR Market Index Rate plus one hundred eighty-five
(185) basis points.  Interest shall be calculated based on a 360-day year (i.e.,
computed  on the actual  number of days  elapsed  over a year of 360 days unless
reference  to a 365 or a 366-day  year is  necessary  in order not to exceed the
highest rate permitted by Applicable  Laws).  The applicable  LIBOR Market Index
Rate shall be  initially  calculated  on the date of initial  applicability  and
shall  be  recalculated  by  Bank  on  each  regularly-scheduled   payment  date
thereafter,  notwithstanding  that such  recalculation date is more or less than
thirty (30) days from the previous  calculation date. If the recalculation  date
falls on a date upon  which  Bank is not open for  business,  the  recalculation
shall occur on the next  business day on which Bank is open for  business.  From
and after the  occurrence of an Event of Default,  the  principal  amount of the
Second Term Loan outstanding from time to time shall,  subject to the provisions
of Section 12.16, bear interest at the Default Rate.

     (e) Interest shall be paid to Bank on the outstanding  principal  amount of
the Second Term Loan and shall be payable monthly in arrears on the first day of
each month beginning with August 1, 2006, and continuing on the same day of each
month  thereafter  through and including  July 1, 2007.  Commencing on August 1,
2007, and  continuing on the first (1st) day of each calendar  month  thereafter
through and including July 1, 2012, the principal amount  outstanding  under the
Second  Term Loan as of June 30,  2007,  shall be  payable  in sixty  (60) equal
monthly installments,  with all remaining principal due and payable in full with
the sixtieth (60th) payment.  Accrued  interest shall be due and payable on each
date  that a  payment  of  principal  is  due  and  payable.  Bank  may,  at its
discretion,  require  updated  appraisals  of  Borrower's  capital  assets  as a
condition  to any advance (a "Second Term Loan  Advance")  under the Second Term
Loan.

     (f)  Borrower  may  request  Second  Term Loan  Advances  from time to time
commencing  July 1, 2006, and continuing  through June 30, 2007. Each request by
Borrower for a Second Term Loan  Advance  will be supported by such  information
and documents (including  invoices,  receipts,  bills of lading,  appraisals and
other due  diligence)  as Bank may request and the terms and  conditions of each
acquisition,  financing  or  refinancing  to be financed by any Second Term Loan
Advance must be satisfactory in all material respects to Bank.  Without limiting
the  generality  of the  foregoing,  and in  addition  to the  other  conditions
precedent  set forth in this  Agreement,  each Second Term Loan Advance shall be
subject to Borrower's  providing to Bank, if required by Bank, a written  report
of examination of the Uniform  Commercial  Code financing  statement,  tax lien,
judgment  lien and suits  pending  indexes of such public  offices and conducted
under such current and past names as are determined  necessary by Bank to assure
that  it is  receiving  a  first-priority  security  interest  in the  equipment
constituting   Collateral,   which   reports  must  be  in  form  and  substance
satisfactory  to Bank.  Bank shall be entitled to file and record such financing

                                       17
<PAGE>

statements and other security instruments as Bank shall determine to perfect its
security interest in any and all equipment constituting Collateral. Bank may, at
its  discretion,  require updated  appraisals of Borrower's  capital assets as a
condition to any Second Term Loan Advance.

     (g) If during the  portion of the term hereof  commencing  on July 1, 2006,
and continuing  through and including June 30, 2007, the Average  Quarterly Loan
Balance  outstanding  under the  Second  Term Loan for any  quarter is less than
$500,000,  then  Borrower  will  immediately  pay to Bank,  in  addition  to any
interest  and other  fees and sums due under this  Agreement  and under the Loan
Documents,  an amount  equal to (a)  $500,000  less the Average  Quarterly  Loan
Balance for the quarter  multiplied  by 0.025%.  The charge due  pursuant to the
terms of this paragraph  shall be payable  quarterly,  in arrears.  In no event,
however,  shall  any  charge  be  payable  for any  quarter  during  which  Bank
accelerates  maturity  of  the  Second  Term  Loan  or  demands  payment  of the
Obligations by reason of the occurrence of any Event of Default or otherwise.

     2.5. TERM.  This Agreement shall remain in force and effect until the Loans
and the  Obligations,  and any renewals or extensions,  and all interest thereon
and costs provided for herein have been  indefeasibly  paid or satisfied in full
and until the Bank has no further  obligation  to advance  funds to the Borrower
hereunder.  The indemnities provided for in Article XI shall survive the payment
in full of the Loans and the Obligations and the termination of this Agreement.

     2.6.  PAYMENTS.  All sums paid to the Bank by Borrower  hereunder the Notes
shall be paid directly to the Bank in immediately  available funds no later than
2:00 P.M., Atlanta,  Georgia time on the date on which payment is due, except if
such date is not a  Business  Day such  payment  shall  then be due on the first
Business Day after such date,  but interest  shall  continue to accrue until the
date payment is received. Any payment received after 2:00 p.m. Atlanta, Georgia,
time shall be deemed to have been received on the immediately following Business
Day for all purposes,  including, without limitation, the accrual of interest on
principal. The Bank shall send Borrower statements of all amounts due hereunder,
which  statements shall be considered  correct and  conclusively  binding on the
Borrower  unless the Borrower  notifies the Bank to the contrary within ten (10)
days of its receipt of any statement  which it deems to be  incorrect.  The Bank
may, in its sole  discretion,  without waiver of any default or Event of Default
and  without  prejudice  to any other  remedy,  (a) charge  against  any deposit
account of the Borrower all or any part of any amount due hereunder,  including,
without  limitation,  fees and  expenses  of the Bank to be paid by  Borrower as
provided in this Agreement, any advances made by Bank to protect the Collateral,
and any  commitment or servicing fee due the Bank,  and (b) advance to Borrower,
and  charge  to the  Revolving  Loan,  a sum  sufficient  each  month to pay all
interest  accrued on the Loans and fees and expenses  due under this  Agreement,
including,  without  limitation,  fees  and  expenses  of the Bank to be paid by
Borrower as provided in this Agreement, any advances made by Bank to protect the
Collateral,  and any commitment or servicing fee due the Bank, during or for the
immediately preceding month or any month prior. Borrower shall be deemed to have
requested  an  advance  under  the  Revolving  Loan  upon the  occurrence  of an
overdraft in any of Borrower's checking accounts maintained with the Bank.

     2.7.  APPLICATION  OF PAYMENTS.  Borrower  irrevocably  waives the right to
direct the  application  of any and all payments and  collections at any time or
times  hereafter  received  by Bank from or on behalf of Borrower or from any of
the Collateral,  and Borrower does hereby irrevocably agree that Bank shall have
the continuing  exclusive right to apply such payments and collections  received

                                       18
<PAGE>

at any time or times hereafter by Bank or its agent against the Obligations,  in
such manner as Bank may deem advisable,  notwithstanding  any entry by Bank upon
any of its books and records. If as the result of collections of Accounts or for
any other  reason,  a credit  balance  exists in the Loan  Account,  such credit
balance shall not accrue interest in favor of Borrower but shall be available to
Borrower at any time or times for so long as no Event of Default exists.

     2.8 DEFAULT INTEREST.  Borrower acknowledges and agrees that the provisions
herein  and in the Notes  relating  to the  Default  Rate  represent  a fair and
reasonable estimate by Borrower and Bank of a fair average  compensation for the
loss that may be sustained by Bank due to the failure of Borrower to make timely
payments with respect to the  Obligations and for the cost and expenses that may
be incurred  by Bank by reason of the  occurrence  of an Event of  Default,  the
parties  recognizing  that  the  damages  caused  by such  extra  administrative
expenses and loss of the use of funds is impracticable or extremely difficult to
ascertain  or  estimate.  Interest  at the  Default  Rate shall be paid  without
prejudice to the rights of Bank to collect any other amounts provided to be paid
hereunder.

                                   ARTICLE III
                              CONDITIONS OF LENDING

     Bank shall not be obligated  to make or continue the Loans,  or to make any
advance  under the Loans,  unless at the time thereof the  following  conditions
shall have been met:

     3.1.  CORPORATE  PROCEEDINGS.  All proper corporate  proceedings shall have
been  taken  by  Borrower  to  authorize  this  Agreement  and the  transactions
contemplated hereby.

     3.2. DOCUMENTATION.  All instruments and proceedings in connection with the
transactions  contemplated  by this Agreement  shall be satisfactory in form and
substance to Bank,  and Bank shall have  received on the date of this  Agreement
copies of all documents,  including records of corporate  proceedings,  which it
may have  requested in  connection  therewith,  including,  without  limitation,
certified  copies  of  resolutions  adopted  by the  Board of  Directors  of the
Borrower, certificates of good standing, and certified copies of the Articles of
Incorporation and By-Laws, and all amendments thereto, of the Borrower.

     3.3.  LOAN  DOCUMENTS.  Bank shall  have  received  executed  copies of all
instruments  evidencing  security  for the  Loans and  copies  of the  insurance
policies and related  certificates of insurance  referred to in Sections 6.1 and
9.6 of this Agreement.

     3.4.  NO  DEFAULT.  No event shall have  occurred  or be  continuing  which
constitutes  an Event of Default or which would  constitute  an Event of Default
with the giving of notice or the lapse of time or both; and neither the business
nor assets nor the  condition,  financial or otherwise,  of Borrower  shall have
been  adversely  affected  in any  material  manner  as the  result of any fire,
explosion,  accident, strike, riot, condemnation, act of God, or any other event
or development.

     3.5.  REPORTS.  Bank shall have received all reports and  information  from
Borrower called for under the Agreement as and when due.

                                       19
<PAGE>

     3.6. PAYMENT OF FEES. Payment by Borrower of all fees and expenses required
by this Agreement.

     3.7.  INCUMBENCY  CERTIFICATE.  Bank  shall  have  received  an  incumbency
certificate,  dated  as of the  date of this  Loan  Agreement,  executed  by the
Secretary or Assistant  Secretary of Borrower,  which shall identify by name and
title and bear the signature of the officer of such Borrower  authorized to sign
this Loan  Agreement and the Notes on behalf of the Borrower.  The Bank shall be
entitled to rely upon such incumbency certificate in completing the transactions
contemplated  herein or in any Loan Document and in all its other  dealings with
Borrower.

     3.8.  CONSENTS.  Bank shall have  received  consents and  agreements of the
landlords of each of the premises  leased by Borrower on which the Collateral is
located as provided in Section 5.10 hereof, all in form satisfactory to Bank.

     3.9.  LIEN SEARCH.  Bank shall have  received a report  acceptable  to Bank
indicating  that  there are no Liens  against  that  portion  of the  Collateral
constituting personal property except Permitted Liens.

     3.10.  DISBURSEMENT  AUTHORIZATION.  Borrower  shall have delivered to bank
such  disbursement  authorizations,  draw  requests,  and  other  documents  and
writings  as  Bank  shall  have  requested  evidencing  Borrower's  request  for
disbursement of funds.

     3.11. ADDITIONAL DOCUMENTS.  Bank shall have received such additional legal
opinions, certificates, proceedings, instruments and other documents as the Bank
or its counsel may reasonably request to evidence (i) compliance by the Borrower
with legal  requirements,  (ii) the truth and  accuracy,  as of the date of this
Agreement,  of the  representations and warranties of Borrower contained herein,
and (iii) the due performance or  satisfaction  by the Borrower,  at or prior to
the date hereof,  of all agreements  required to be performed and all conditions
required to be satisfied by the Borrower  pursuant  hereto,  including,  without
limitation,  all such matters as are listed on any preliminary closing checklist
issued by Bank and furnished to Borrower.

                                   ARTICLE IV
                                SECURITY FOR LOAN

     The Obligations are and shall be secured by each of the following:

     (a) A security  interest  in all  Collateral  subject to no other  security
interests except security interests of Bank; and

     (b) This Agreement and the other Loan Documents.

     Notwithstanding  the  foregoing  sentence,  Bank shall have (a) as the sole
security of Bank in the assets of Borrower for Borrower's  obligations under the
Reimbursement  Agreement  and in regard to the  Bonds,  a first  (1st)  priority
security interest in the Bond Equipment and (b) to secure all other Obligations,
a second (2nd) priority security  interest in the Bond Equipment,  provided that
upon the  occurrence of an Event of Default,  Bank shall be entitled to exercise
any and all available remedies against any and all Collateral, including but not
limited to the Bond Equipment.

                                       20
<PAGE>

     Part of the  Equipment may  constitute  motor  vehicles and other  vehicles
subject to registration under the motor vehicle title  registration  statutes of
Georgia or other states, and with respect to which the security interest of Bank
therein is required to be registered on the vehicle title certificate.  Borrower
agrees to execute and deliver on a timely basis all such title  certificates and
instruments as shall be requested by Bank from time to time.

     Part of the  Equipment  may be  affixed to real  estate  owned or leased by
Borrower and constitute fixtures under the Uniform Commercial Code. The Borrower
agrees that any such fixtures shall be included  within the meaning of Equipment
as used and  defined  herein  and that the Bank is  hereby  granted  a  security
interest in and a lien upon such fixtures.

     The Borrower  agrees to execute and  deliver,  or cause the  execution  and
delivery of, such security agreements,  deeds of trust, mortgages,  assignments,
guaranties, consents and subordination agreements, as may be required by Bank to
evidence  such  security,  all in form  satisfactory  to  Bank,  as well as such
consents and  agreements  of the  landlords  of each of the  premises  leased by
Borrower on which the Collateral is located, all in form satisfactory to Bank.

                                    ARTICLE V
                REPRESENTATIONS, WARRANTIES AND GENERAL COVENANTS

     Borrower  represents,  warrants  and  covenants  to and  with  Bank,  which
representations,  warranties and covenants  shall survive until the  Obligations
are indefeasibly satisfied in full, that:

     5.1.  ORGANIZATION  AND  QUALIFICATION.  The Borrower is a corporation duly
organized,  validly existing and in good standing under the laws of the State of
Delaware,  has the  corporate  power to own its  properties  and to carry on its
business as now being conducted;  and is duly qualified to do business and is in
good standing in every  jurisdiction  in which the  character of the  properties
owned by it or in which the transaction of its business makes its  qualification
necessary.

     5.2.  CORPORATE  POWER  AND  AUTHORIZATION.  Borrower  has full  power  and
authority  to enter into this  Agreement,  to borrow  hereunder,  to execute and
deliver  the Notes and the other  Loan  Documents  and to incur the  obligations
provided  for  herein,  all of which  have been  authorized  by all  proper  and
necessary corporate action.

     5.3.  ENFORCEABILITY.  This Agreement, the Notes and each of the other Loan
Documents   constitute  valid  and  legally  binding   obligations  of  Borrower
enforceable  in  accordance  with their  respective  terms and will not violate,
conflict with, or constitute any default under any law,  government  regulation,
Borrower's  Articles of  Incorporation  or By-Laws,  or any other  agreement  or
instrument binding upon Borrower or its assets.

     5.4. PENDING ACTIONS.  Borrower is not a defendant,  or a plaintiff against
whom a counterclaim  or crossclaim  has been asserted,  in any civil or criminal
action, suit or litigation, and no action or investigation is pending or, so far
as Borrower's officers and directors know,  threatened before or by any court or
administrative  agency which might result in any material  adverse change in the
financial condition, operations or prospects of Borrower.

                                       21
<PAGE>

     5.5.  FINANCIAL  STATEMENTS.  The financial  statements  of Borrower  dated
heretofore  delivered  to Bank and all other  financial  statements  and reports
furnished by Borrower to Bank are  complete  and correct and fairly  present the
financial   condition  of  Borrower  and  the  results  of  its  operations  and
transactions  as of the  dates  and for the  periods  referred  to and have been
prepared in accordance  with GAAP applied on a consistent  basis  throughout the
periods  involved.  There  are no  liabilities,  direct  or  indirect,  fixed or
contingent,  of Borrower as of the date of such financial  statements  which are
not reflected therein or in the notes thereto. Neither said financial statements
nor any other  financial  statements,  reports,  and  information  furnished  by
Borrower to Bank  contains any untrue  statement  of a material  fact or omits a
material fact necessary to make the statements  contained  therein or herein not
misleading.  There is no fact which  Borrower  has failed to disclose to Bank in
writing  which  materially  affects  adversely  or, so far as  Borrower  can now
foresee, will materially affect adversely the Collateral,  business,  prospects,
profits or  condition  (financial  or  otherwise)  of Borrower or the ability of
Borrower to perform this Agreement.

     5.6. TITLE TO PROPERTIES.  Borrower has good and marketable title to all of
its assets, subject to no Lien, mortgage, pledge,  encumbrance, or charge of any
kind except inchoate Liens arising by operation of law for obligations which are
not yet due and  except for  Permitted  Liens.  Borrower  enjoys  peaceable  and
undisturbed possession under all leases under which it is operating, and none of
such leases contain any provisions  which may materially and adversely affect or
impair the  operations  of the  Borrower,  and all of such  leases are valid and
subsisting and in full force and effect.

     5.7.  PENSION PLANS.  Except as set forth on EXHIBIT "D",  Borrower has not
established  and is not a party to any Plan or to any stock  option or  deferred
compensation plan or contract for the benefit of its employees or officers,  any
pension,  profit sharing or retirement plan, stock redemption agreement,  or any
other  agreement  or  arrangement  with any  officer,  director or  stockholder,
members  of  their  families,  or  trusts  for  their  benefit.  Borrower  is in
compliance with all applicable  provisions of ERISA. Neither Borrower nor any of
its  Subsidiaries  has  received any notice to the effect that it is not in full
compliance with any of the requirements of ERISA and the regulations promulgated
thereunder.  No fact or situation that could result in a material adverse change
in the  financial  condition  of  Borrower,  including,  but not limited to, any
Reportable Event or Prohibited Transaction,  exists in connection with any Plan.
Neither  Borrower nor any of its  Subsidiaries  has any withdrawal  liability in
connection with a Multiemployer Plan.

     5.8.  TAXES.  Borrower has filed all  federal,  state and local tax returns
which are required to be filed and has paid, or made adequate  provision for the
payment of, all taxes which have or may become due  pursuant to said  returns or
to  assessments  received  by  Borrower,   including,  without  limitation,  all
applicable federal, state, and local employee withholding taxes.

     5.9. TITLE TO COLLATERAL. Except for Permitted Liens, Borrower is, or as to
Collateral  to be acquired  after the date hereof will be, the sole owner of the
Collateral   free  from  any  adverse   Liens,   security   interests  or  other
encumbrances.  Borrower  shall  defend  the  Collateral  against  all claims and
demands  of all  other  parties  who at  any  time  claim  any  interest  in the
Collateral.

                                       22
<PAGE>

     5.10.  PLACE OF BUSINESS.  Borrower's  chief executive office is located at
4350 Peachtree Industrial Avenue, Suite 100, Norcross,  Gwinnett County, Georgia
30071.  The Inventory and Equipment and other Collateral is and shall be located
only at the  locations  listed  on  EXHIBIT  "E" to this  Agreement.  Except  as
indicated on said exhibit,  the real estate  constituting  each said location is
owned by Borrower. With respect to locations not owned by Borrower, said exhibit
sets forth the name and address of each landlord,  the location of the property,
and the remaining term of the lease.  Borrower has separately  furnished to Bank
true and correct copies of the lease agreements for each said parcel.

     5.11. FULL  DISCLOSURE.  All information  furnished by Borrower to the Bank
concerning the Borrower, its financial condition,  the Collateral,  or otherwise
for the purpose of obtaining credit or an extension of credit, is, or will be at
the time the same is  furnished,  accurate and correct in all material  respects
and complete  insofar as  completeness  may be necessary to give the Bank a true
and accurate knowledge of the subject matter.

     5.12.  BORROWER'S NAME.  Borrower has not changed its name or been known by
any other name  within the last five (5)  years,  nor has it been the  surviving
corporation in a merger effected  within the last five (5) years.  Borrower does
not now use nor has it ever used any trade or fictitious  name in the conduct of
its business, except for "Color Image".

     5.13. EXISTING LIABILITIES.  Borrower is not in default with respect to any
of its existing  Liabilities or with respect to any material  agreement to which
Borrower is a party.

     5.14.  INSOLVENCY.  Borrower  is  now  and,  after  giving  effect  to  the
transactions  contemplated  hereby, at all times will be, Solvent.  The benefits
received by Borrower as a result of this Agreement and the Loans equal or exceed
in  value  the  obligations  incurred  under  this  Agreement  and the  value of
Borrower's interest in the Collateral.  The execution,  delivery and performance
of this Agreement  will assist  Borrower in preserving its assets and continuing
its business activities.

     5.15. SUBSIDIARIES. Borrower has no Subsidiaries.

     5.16.   ENVIRONMENTAL   MATTERS.   Borrower  is  in  compliance   with  all
Environmental  Regulations and with all other federal,  state and local laws and
regulations  relating to the environment and pollution,  including such laws and
regulations   regulating   hazardous,   radioactive   and  toxic  materials  and
underground petroleum products storage tanks. No assessment,  notice of (primary
or secondary) liability or notice of financial responsibility,  and no notice of
any action,  claim,  investigation,  proceeding,  or inquiry to  determine  such
liability or responsibility, or the amount thereof, or to impose civil penalties
has  been  received  by  Borrower,  and  there  are  no  facts,   conditions  or
circumstances  known to Borrower  which  could  result in any  investigation  or
inquiry if all such facts,  conditions,  and  circumstances,  if any, were fully
disclosed  to the  applicable  governmental  authority.  Borrower  has  paid any
environmental excise taxes due and payable, including without limitation,  those
imposed pursuant to Sections 4611, 4661, or 4681 of the Internal Revenue Code of
1986,  as  amended  from  time to time.  Borrower  has not  obtained  and is not
required  to  obtain  any  permits,   licenses,  or  similar  authorizations  to
construct,  occupy,  operate or use any  buildings,  improvements,  fixtures  or
equipment  in  connection  with its  business  by  reason  of any  Environmental
Regulations.  No oil,  toxic or hazardous  substances  or solid wastes have been

                                       23
<PAGE>

disposed of or released by Borrower  in  connection  with the  operation  of its
business  and Borrower  will not dispose of or release  oil,  toxic or hazardous
substances  or solid wastes at any time in its  operation  of its business  (the
terms "hazardous  substance" and "release" shall have the meanings  specified in
the  Comprehensive  Environmental  Response,  Compensation  and Liability Act of
1980,  as  amended  ("CERCLA"),  and the terms  "solid  waste"  and  "disposal,"
"dispose"  or  "disposed"  shall have the  meanings  specified  in the  Resource
Conservation and Recovery Act of 1976, as amended ("RCRA"),  except that if such
acts are amended to broaden the  meanings  thereof,  the broader  meaning  shall
apply herein).

     5.17. OWNERSHIP.  Borrower is a public corporation, the shares of which are
traded  over the  counter.  Bank  consents  to the  Going  Private  Transaction,
provided that the Going Private  Transaction is  accomplished in accordance with
all applicable  laws,  rules and  regulations  and results in stock ownership in
Borrower approved by Bank.

     5.18.  INVENTORY.  All  Inventory  has been  produced,  and during the term
hereof will be produced, in compliance with the requirements of the Federal Fair
Labor Standards Act. No Inventory is now, nor shall any Inventory at any time or
times hereafter be, stored with a bailee,  warehouseman or similar party without
Bank's prior  written  consent and, if Bank gives such  consent,  Borrower  will
concurrently therewith cause any such bailee, warehouseman,  or similar party to
issue and deliver to Bank, in form and substance  acceptable to Bank,  warehouse
receipts  therefor in Bank's  name.  No Inventory is or will be consigned to any
Person  without  Bank's prior  written  consent,  and, if such consent is given,
Borrower  shall,  prior to the  delivery of any  Inventory on  consignment,  (i)
provide Bank with all  consignment  agreements to be used in connection with any
consigned  inventory,  all of which shall be acceptable  to Bank,  (ii) prepare,
execute  and file  appropriate  financing  statements  with  respect to any such
consigned  inventory,  showing Bank as assignee,  (iii)  conduct a search of all
filings made against the consignee in all  jurisdictions  in which any consigned
Inventory is to be located and deliver to Bank copies of the results of all such
searches,  (iv) notify, in writing, all the creditors of the consignee which are
or may be  holders  of Liens in the  Inventory  to be  consigned  that  Borrower
expects to deliver  certain  inventory to the consignee,  all of which Inventory
shall be  described  in such  notice by item or type,  and (v) do all such other
things and acts as may be necessary  or  desirable  to fully  perfect on a first
priority basis Bank's security interest in said Inventory.

     5.19.  LABOR  RELATIONS.  Neither Borrower nor any of its Subsidiaries is a
party  to any  collective  bargaining  agreement,  and  there  are  no  material
grievances,  disputes or controversies  with any union or any other organization
of Borrower's  employees,  or threats of strikes, work stoppages or any asserted
pending demands for collective bargaining by any union or organization.

     5.20.  TRADE RELATIONS.  There exists no actual or threatened  termination,
cancellation  or limitation of, or any  modification  or change in, the business
relationship  between  Borrower and any customer or any group of customers whose
purchases  individually  or in the  aggregate  are  material to the  business of
Borrower,  or with any material supplier,  and there exists no present condition
or state of facts or  circumstances  which  would  materially  affect  adversely
Borrower  or  prevent   Borrower  from   conducting   such  business  after  the
consummation of the transaction  contemplated by this Agreement in substantially
the same manner in which it has heretofore been conducted.

                                       24
<PAGE>

     5.21.  PARTNERSHIPS.  Borrower is not a partner or joint  venturer with any
other Person or a participant in any business  enterprise other than its own for
which it is generally liable, nor does Borrower have any contingent  liabilities
of  any  description  other  than  as  indicated  in  the  financial  statements
heretofore delivered to Bank.

     5.22. SURETY OBLIGATIONS. Borrower is not obligated as guarantor, surety or
indemnitor  under  any  indemnity,  guaranty,  surety or  similar  bond or other
contract issued or entered into or any agreement to assure payment,  performance
or completion of  performance  of any  undertaking  or obligation of any Person,
except  under  manufacturer's  warranties  issued  in  the  ordinary  course  of
Borrower's business.

     5.23. NO APPROVAL.  No authorization or approval or other action by, and no
notice to or filing with, any federal,  state, or local government body, agency,
or authority is required for the due  execution,  delivery,  and  performance by
Borrower of this Agreement, the Notes, or the Loan Documents.

     5.24.  RACKETEERING.  Borrower  is not engaged in any  activity  that might
constitute a pattern of racketeering activity or in any other conduct that might
subject all or a material portion of Borrower's assets to forfeiture.

     5.25.  PATENTS,  TRADEMARKS,  COPYRIGHTS  AND  LICENSES.  Borrower  owns or
possesses all the patents,  trademarks,  service marks, trade names,  copyrights
and  licenses  necessary  for the  present  and  planned  future  conduct of its
business  without any known  conflict  with the rights of others.  All  patents,
trademarks,  service marks, tradenames,  copyrights,  licenses and other similar
rights owned or used by Borrower  are listed on EXHIBIT "F" attached  hereto and
made a part hereof. Where said patents are not owned outright by Borrower,  said
exhibit lists the owner thereof and  identifies  the license or other  agreement
pursuant to which they are used by Borrower.

     5.26.  REPRESENTATIONS  TRUE. No representation or warranty by the Borrower
contained  herein  or in any  certificate  or other  document  furnished  by the
Borrower pursuant hereto contains any untrue statement of material fact or omits
to state a material fact necessary to make such  representation  or warranty not
misleading in light of the circumstances under which it was made.

                                   ARTICLE VI
                                GENERAL COVENANTS

     Borrower  agrees  and  covenants  that  until  the  Obligations  have  been
indefeasibly  paid in full and until the Bank has no further  obligation to make
advances under the Loans, Borrower shall:

     6.1. INSURANCE. Maintain insurance with insurance companies satisfactory to
Bank on such of its  properties,  in such  amounts and against  such risks as is
customarily maintained in similar businesses operating in the same vicinity, and
shall file with Bank upon  request,  from time to time,  a detailed  list of the
insurance  then in effect,  stating the names of the  insurance  companies,  the
amounts  and  rates of the  insurance,  dates  of  expiration  thereof,  and the
properties  and risks  covered  thereby,  and,  within 10 days  after  notice in
writing from Bank, shall obtain such additional insurance as Bank may reasonably
request.  All such  policies  shall name the Bank as a named insured and provide
that any losses payable  thereunder shall (pursuant to loss payable clauses,  in

                                       25
<PAGE>

form and content  acceptable  to the Bank,  to be  attached  to each  policy) be
payable to the Bank, and provide that the insurance provided thereby,  as to the
interest  of the Bank,  shall not be  invalidated  by any act or  neglect of the
Borrower, nor by the commencing of any proceedings by or against the Borrower in
bankruptcy, insolvency,  receivership or any other proceedings for the relief of
a debtor, nor by any foreclosure,  repossession or other proceedings relating to
the property insured,  nor by any occupation of such property or the use of such
property for purposes  more  hazardous  than  permitted in the policy.  Borrower
hereby assigns to the Bank all right to receive proceeds, directs any insurer to
pay all proceeds  directly to the Bank,  and  authorizes the Bank to endorse any
check or draft for such proceeds and apply the same toward  satisfaction  of the
Obligations.  The Borrower shall furnish to the Bank insurance certificates,  in
form and substance  satisfactory to the Bank,  evidencing  compliance by it with
the terms of this  Section  and,  upon the request of the Bank at any time,  the
Borrower shall furnish the Bank with photostatic copies of the policies required
by the terms of this Section. The Borrower will cause each insurer under each of
the  policies  to agree  (either by  endorsement  upon such  policy or by letter
addressed to the Bank) to give the Bank at least 10 days' prior  written  notice
of the  cancellation  of such  policies  in whole or in part or the lapse of any
coverage thereunder. Borrower agrees that it will not take any action or fail to
take any action which action or inaction would result in the invalidation of any
insurance  policy  required  hereunder.  At least 10 days  prior to the date the
premiums on each such  policy or  policies  shall  become due and  payable,  the
Borrower  shall  furnish to the Bank  evidence of the payment of such  premiums.
Borrower  shall  furnish  to the Bank such  evidence  of  insurance  as Bank may
require.

     6.2. CORPORATE EXISTENCE:  QUALIFICATION.  Maintain its corporate existence
and, in each  jurisdiction in which the character of the property owned by it or
in which the  transaction  of its business  makes its  qualification  necessary,
maintain good standing.

     6.3. TAXES.  During each fiscal year, accrue all current tax liabilities of
all kinds, all required  withholding of income taxes of employees,  all required
old age and  unemployment  contributions,  all  required  payments  to  employee
benefit plans, and pay the same when they become due.

     6.4.  COMPLIANCE  WITH LAWS.  Comply with all Applicable  Laws,  including,
without limitation,  Environmental Regulations,  and pay all taxes, assessments,
charges, claims for labor, supplies, rent, and other obligations.  Specifically,
Borrower shall pay when due all taxes and assessments upon the Collateral,  this
Agreement, the Notes, or any Loan Document,  including,  without limitation, any
stamp taxes or intangibles taxes imposed by virtue of the transactions  outlined
herein.

     6.5. ANNUAL FINANCIAL  STATEMENTS.  Within 120 days after the close of each
fiscal year,  furnish Bank with annual audited financial  statements of Borrower
consisting of balance sheets,  operating statements and such other statements as
Bank may reasonably request, for the period(s) involved,  prepared in accordance
with GAAP  consistently  applied for the period  involved and for the  preceding
fiscal  year  and  certified  as  reviewed  by  independent   certified   public
accountants  acceptable to the Bank. At the time of  furnishing  said  financial
statements,  Borrower  shall  furnish  Bank  with  (i) a  certificate  from  the
President or the chief  financial  officer of Borrower,  or any other officer of
Borrower  properly  authorized  as  evidenced  by  a  Secretary's   Certificate,
including  resolution  and  incumbency   certificate,   in  form  and  substance

                                       26
<PAGE>

acceptable to Bank,  stating that (A) the certifier has reviewed this  Agreement
and the affairs of Borrower,  (B) to the best of the  certifier's  knowledge and
belief the certifier is unaware of the occurrence of an event which  constitutes
an Event of Default hereunder or which would constitute such an Event of Default
with the giving of notice or the lapse of time or both,  and, if so, stating the
facts  with  respect  thereto,  (C)  setting  forth  the  calculations  to  show
compliance  with the financial  covenants set forth herein,  as set forth in the
Covenant  Compliance  Certificate or as otherwise  specified by Bank, and (ii) a
letter from such independent  certified public accountants stating that the Bank
may rely on such financial statements and their opinion with respect thereto.

     6.6. INTERIM FINANCIAL  STATEMENTS.  Within 45 days after the close of each
fiscal quarter,  furnish Bank with a Covenant Compliance Certificate,  unaudited
quarterly  and  year-to-date  financial  statements  of Borrower,  consisting of
balance  sheets  and  operating  statements  and a  listing  of  all  contingent
liabilities of the Borrower for the periods  involved and such other  statements
as Bank may  request,  prepared  in  accordance  with  GAAP  applied  on a basis
consistent with the financial  statement(s)  previously furnished to Bank, taken
from the books and records of  Borrower  and  certified  as correct by the chief
financial  officer  of  Borrower.  At the  time  of  furnishing  such  financial
statements, Borrower shall furnish Bank with a certificate from the President or
the chief  financial  officer of  Borrower,  or any other  officer  of  Borrower
properly  authorized  as  evidenced  by  a  Secretary's  Certificate,  including
resolution and incumbency certificate, in form and substance acceptable to Bank,
stating that the certifier  has reviewed  this  Agreement and the affairs of the
Borrower  and that to the  best of the  certifier's  knowledge  and  belief  the
certifier is unaware of the occurrence of an event which constitutes an Event of
Default  hereunder or which would  constitute  such an Event of Default with the
giving of notice or the lapse of time or both, and if so, stating the facts with
respect thereto.  Said  certificates  shall further confirm that Borrower was at
the time of issuance of said financial  statements,  and has at all times since,
been Solvent.  Unless otherwise  specified by Bank, said certificate shall be in
the form of EXHIBIT "B" hereto. In addition, Borrower shall furnish to Bank upon
request  by Bank  from  time to time all  federal  and  state  tax  returns  and
informational  reports,  including,  without limitation,  the Form 941 Quarterly
payroll tax information form and all other forms filed with any state,  federal,
or local agency  pertaining to payment of applicable  payroll and other federal,
state and local taxes.

     6.7. VISITS AND INSPECTIONS.  Permit persons  designated by Bank to inspect
any and all of the property and  corporate  and  financial  books and records of
Borrower  and to discuss its affairs  with its  officers  and  employees at such
reasonable times as Bank shall request and furnish Bank with such  miscellaneous
information as it may request.

     6.8.  PAYMENTS ON NOTES. Duly and punctually pay the principal and interest
on the Notes,  in accordance  with the terms of this Agreement and of the Notes,
and pay all other Liabilities of Borrower reflected on the financial  statements
delivered  to  Bank  and  referred  to in  Section  5.5  hereof  and  all  other
Liabilities  incurred after the date hereof in accordance with the terms of such
Liabilities, it being understood, however, that this Section shall not be deemed
to permit any Liabilities in violation of the provisions of Sections 7.1 and 7.2
hereof.

                                       27
<PAGE>

     6.9. CONDUCT OF BUSINESS.  Conduct its business as now conducted and do all
things  necessary  to  preserve,  renew and keep in full  force and  effect  its
rights, privileges and franchises necessary to continue its business.

     6.10.  MAINTENANCE  OF  PROPERTIES.  Keep its  properties  in good  repair,
working order and condition, reasonable wear and tear excepted, and from time to
time make all needed and proper repairs, renewals, replacements,  additions, and
improvements thereto and comply with the provisions of all leases to which it is
a party or  under  which  it  occupies  property  so as to  prevent  any loss or
forfeiture thereof or thereunder.

     6.11.  ADDITIONAL  DOCUMENTS.  Join  the  Bank in  executing  any  security
agreements, assignments, consents, financing statements or other instruments, in
form  satisfactory  to the Bank,  as the Bank may from time to time  request  in
connection  with the Collateral and the other security for the Loans referred to
in Article IV hereof.

     6.12. NOTICE TO BANK.  Immediately notify the Bank of (i) any event causing
a material loss or  depreciation  in value of the  Collateral  and the amount of
such loss or  depreciation,  (ii) if Borrower becomes aware of the occurrence of
any Event of Default or of any fact, condition or event that, with the giving of
notice or passage of time,  or both,  could become an Event of Default or of the
failure of the Borrower to observe any of its undertakings  hereunder,  or (iii)
any material  lawsuit  involving  Borrower.  As soon as practicable,  and in any
event not less than three (3)  business  days prior to the  consummation  of the
Going Private transaction,  Borrower shall notify Bank in writing of the pending
consummation and of the stock ownership in Borrower as of the consummation.

     6.13.  COLLATERAL  REPORTS.  Within 30 days after the close of each  fiscal
quarter during which Borrower has not utilized the Revolving Loan, Borrower will
furnish to Bank a detailed accounts receivable aging report, a detailed accounts
payable aging report, an inventory report and a Borrower's  Report,  all in form
and  substance,  and  containing  such  detail  and  information,  as Bank shall
request.  Within 30 days  after  the close of each  fiscal  month  during  which
Borrower  has  utilized  the  Revolving  Loan,  Borrower  will furnish to Bank a
detailed  accounts  receivable aging report,  a detailed  accounts payable aging
report, an inventory report and a Borrower's  Report, all in form and substance,
and containing  such detail and  information,  as Bank shall request.  At Bank's
option, as a condition to making any advance under the Revolving Loan,  Borrower
shall also provide a Borrower's Report for the month  immediately  preceding the
first  advance made under the  Revolving  Loan.  Borrower  shall furnish to Bank
copies of all  physical  inventory  listings  when  prepared by  Borrower.  Each
Accounts  receivable  aging and Borrower's  Report shall  specifically  identify
foreign Accounts and the applicable amounts of insurance  pertaining to all such
foreign Accounts.

     6.14.  SUBORDINATION  OF  DEBT.  Provide  Bank  with a  debt  subordination
agreement,  in form and substance satisfactory to Bank, executed by Borrower and
any Person who is an officer, director,  shareholder or Affiliate of Borrower to
whom Borrower may hereafter become  indebted,  subordinating in right of payment
and claim all debt owed by Borrower  to any said Person and any future  advances
thereon to the full and final payment of the Obligations.

     6.15. COLLECTION OF ACCOUNTS.  Diligently pursue collection of all Accounts
and other amounts due Borrower by others, including Affiliates of Borrower.

                                       28
<PAGE>

     6.16. LANDLORD AND STORAGE  AGREEMENTS.  Upon request by Bank, provide Bank
with copies of all agreements  between Borrower and any landlord or warehouseman
which owns any premises at which any  inventory or other  Collateral  may,  from
time to time, be kept.

     6.17. AUDITORS, INSURANCE REPRESENTATIVES AND AGENTS. Furnish the Bank with
a copy of each  letter  written to the  Borrower  by its  independent  certified
public accountant concerning internal controls and management review immediately
upon receipt of same and any comments made by the Borrower with respect  thereto
and  permit  Bank  to  communicate  directly  with  said  accountants  and  with
Borrower's insurance  representatives and agents regarding the financial affairs
and  condition of Borrower,  the books and records of  Borrower,  and  insurance
matters pertaining to Borrower's business.

     6.18.  ERISA   COMPLIANCE.   (a)  At  all  times  make  prompt  payment  of
contributions  required to meet the minimum funding standards set forth in ERISA
with respect to each Plan;  (b) promptly  after the filing  thereof,  furnish to
Bank  copies of any annual  report  required  to be filed  pursuant  to ERISA in
connection  with  each Plan and any other  employee  benefit  plan of it and its
Affiliates;  (c) notify Bank as soon as practicable of any Reportable  Event and
of any  additional  act or condition  arising in connection  with any Plan which
Borrower  believes might constitute  grounds for the termination  thereof by the
Pension Benefit  Guaranty  Corporation or for the appointment by the appropriate
United  States  district  court of a trustee  to  administer  the Plan;  and (d)
furnish  to  Bank,  promptly  upon  Bank's  request  therefor,  such  additional
information  concerning any Plan or any other such employee  benefit plan as may
be reasonably requested.

     6.19. BANK ACCOUNTS.  Maintain its principal depository and cash management
accounts with the Bank.

     6.20.  BUSINESS RECORDS.  Keep, and cause each Subsidiary to keep, adequate
records and books of account with respect to its  business  activities  in which
proper  entries are made in accordance  with GAAP  reflecting  all its financial
transactions.

     6.21 FINANCIAL  COVENANTS.  Maintain at all times that this Agreement is in
effect the following:

     (a)  Fixed Charge  Coverage Ratio with respect to the  twelve-month  period
          ending  on the  last  day of  any  fiscal  quarter  of not  less  than
          1.25:1:00;

     (b)  Traditional Leverage of not more than 2.0 to 1; and

     (c)  Tangible Net Worth of not less than $9,000,000.

If Borrower either abandons the Going Private Transaction or fails to consummate
the Going  Private  Transaction  by December 31, 2005,  in  accordance  with all
applicable  laws,  rules and  regulations  and  resulting in stock  ownership in
Borrower  approved by Bank,  then the foregoing  covenants,  effective  upon the
earlier of abandonment  or December 31, 2005,  shall be modified to provide that
Borrower shall at all times thereafter maintain the following:

     (a)  Fixed Charge  Coverage Ratio with respect to the  twelve-month  period
          ending  on the  last  day of  any  fiscal  quarter  of not  less  than
          1.25:1:00;

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<PAGE>

     (b)  Traditional Leverage of not more than 1.5 to 1; and

     (c)  Tangible Net Worth of not less than $ 10,000,000.

     6.22.  FILING.  Deliver to Bank a copy of any filings with any governmental
body,  agency or authority which regulates  Borrower's  business (except for tax
returns filed in the ordinary course of business).

                                   ARTICLE VII
                               NEGATIVE COVENANTS

     Until the Obligations have been  indefeasibly  repaid and satisfied in full
and until the Bank has no further  obligation to make advances  under the Loans,
without the prior written consent of Bank, the Borrower shall not:

     7.1.  INDEBTEDNESS.  Except as permitted or contemplated by this Agreement,
create, incur, assume or suffer to exist any Liabilities or obligation for money
borrowed,  or  guarantee,  or endorse,  or otherwise  be or become  contingently
liable in connection  with the  obligations  of any Person  (including,  without
limitation, any Affiliate), except

     7.1.1.  Indebtedness for taxes not at the time due and payable or which are
being actively  contested in good faith by appropriate  proceedings  and against
which reserves  deemed adequate by Bank have been  established by Borrower,  but
only if the  non-payment of such taxes being contested does not result in a Lien
upon any property of Borrower that has priority over the Lien held by Bank;

     7.1.2.  Contingent liabilities arising out of the endorsement of negotiable
instruments in the ordinary course of collection or similar  transactions in the
ordinary course of business;

     7.1.3. Accounts payable to trade creditors which are not aged more than one
hundred  twenty  (120) days from  billing  date and current  operating  expenses
(other  than for  borrowed  money)  which are not more than sixty (60) days past
due, in each case  incurred in the  ordinary  course of business and paid within
such time period, unless the same are actively being contested in good faith and
by  appropriate  and lawful  proceedings  and Borrower shall have set aside such
reserves,  if any, with respect thereto as have been  recommended by independent
public accountants;

     7.1.4.  Liabilities to third parties for purchase money borrowing  incurred
in  connection  with the  purchase  of capital  assets  used in the  business of
Borrower not to exceed $100,000 during any fiscal year of Borrower;

     7.1.5. Liabilities for money borrowed from the Bank; and

     7.1.6 Subject to Section 7.1.7, Liabilities to Affiliates provided that and
so  long  as (a)  such  Liabilities  at no  time  exceeds  One  Million  Dollars
($1,000,000)  in  outstanding  principal  amount  in  the  aggregate;  (b)  such
Liabilities is in all respects and at all times  subordinate  and subject to the
Obligations pursuant to subordination  agreements acceptable to Bank in its sole
discretion;  (c) such Liabilities  require Borrower to pay only interest thereon
so long as the Obligations or any portion  thereof is  outstanding,  except that

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<PAGE>

such  Liabilities  may  require  Borrower  to pay  principal  to the  extent  of
additional cash equity investments  actually made in Borrower,  and (d) no Event
of Default exists.

     7.2. LIENS AND SECURITY  INTERESTS.  Create,  incur,  assume,  or suffer to
exist any mortgage,  security deed, deed of trust,  security  interest,  pledge,
encumbrance, Lien or charge of any kind (including charges on property purchased
under  conditional  sales or  other  title-retention  agreements)  on any of its
property or assets,  now owned or hereafter  acquired,  except for the following
(all of which are referred to herein as "Permitted Liens"):

     7.2.1.  Liens for taxes  not yet due or which are being  contested  in good
faith by appropriate  proceeding and against which reserves  deemed  adequate by
Bank  have  been set up  (excluding  any  Lien  imposed  pursuant  to any of the
provisions of ERISA);

     7.2.2. Other Liens,  charges and encumbrances  incidental to the conduct of
its  business  or the  ownership  of its  property  and  assets  and  created by
operation of law;

     7.2.3.  Purchase  money  Liens  and  encumbrances  created  to  secure  the
indebtedness permitted by Section 7.1.4 hereof;

     7.2.4. Liens, charges and encumbrances in favor of the Bank; and

     7.2.5.  Liens,  charges and  encumbrances  reflected on EXHIBIT "G" to this
Agreement.

     7.3.  DIVIDENDS AND  DISTRIBUTIONS.  Declare any dividends on any shares of
any class of its capital  stock,  or apply any of its  property or assets to the
purchase,  redemption  or other  retirement  of,  or set  apart  any sum for the
payment of any  dividends on, or for the  purchase,  retirement  of, or make any
other  distribution  by  reduction  of capital or  otherwise  in respect of, any
shares  of  any  class  of  capital  stock  of the  Borrower,  except  for  such
transactions  that do not  result  in or cause a breach or  violation  of any of
Borrower's covenants set forth in this Agreement.

     7.4. AFFILIATE TRANSACTIONS.  Purchase,  acquire or lease property from, or
sell,  transfer or lease any inventory,  materials,  goods,  equipment,  assets,
rights or property to, any Affiliate of Borrower,  except in the ordinary course
of  Borrower's  business  and under  terms and  conditions  which would apply if
disinterested parties were involved.

     7.5. FINANCING  STATEMENTS.  Permit any financing  statement (except Bank's
financing statements) to be on file with respect to the Collateral.

     7.6.  LOCATION OF COLLATERAL.  Change the locations at which the Collateral
is maintained;  change the name,  identity,  or corporate structure of Borrower;
adopt or make use of any  fictitious  or trade name not  disclosed  elsewhere in
this Agreement; or change the location of its chief executive office.

     7.7.  DESTRUCTION OF COLLATERAL.  Waste or destroy the Collateral or use it
in violation of any statute or ordinance.

     7.8. MERGER OR  CONSOLIDATION.  Enter into any merger or  consolidation  or
acquire all or substantially all of the assets of any Person; or sell, lease, or

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<PAGE>

otherwise  dispose of any of its assets in an aggregate amount exceeding $50,000
during any fiscal year, except sales in the ordinary course of its business.

     7.9.  LOANS OR ADVANCES.  Make loans or make advances or pay any management
or similar fees to any Person.

     7.10. ACQUISITIONS.  Purchase or acquire the obligations or stock of or any
other interest in any Person,  except direct obligations of the United States of
America or certificates of deposit or other investments issued by the Bank or by
any bank designated in writing by the Bank.

     7.11.  PAYMENT OF  LIABILITIES.  Pay any  portion of the  principal  of, or
prepay, any Liabilities except Liabilities to the Bank;  provided,  however, the
Borrower may take  ordinary  trade  discounts on purchases  made in the ordinary
course of business  provided  that and so long as no Event of Default  exists or
results from any such payment or prepayment.

     7.12. LEASE TRANSACTIONS.  Enter into any sale and lease-back  arrangement,
either directly or indirectly.

     7.13.  AMENDMENTS.  Amend any instrument evidencing a Permitted Lien or the
indebtedness secured thereby.

     7.14.  SALARIES.  From and after  January 1, 2006,  increase the salary and
fringe  benefits of any officer or director or  shareholder  or any Affiliate of
any  officer or  director  or  shareholder  of  Borrower by more than 15% in any
fiscal year from the annual  amount  payable as of the last day of the  previous
fiscal year.

     7.15.  ADVERSE  TRANSACTIONS.  Enter  into any  transaction,  or permit any
Subsidiary to enter into any transaction, which materially and adversely affects
or may materially and adversely  affect the Collateral or Borrower's  ability to
repay the Obligations or permit or agree to any material  extension,  compromise
or  settlement  or make any change or  modification  of any kind or nature  with
respect to any Account,  including any of the terms relating thereto, other than
discounts and allowances in the ordinary course of business.

     7.16.  SUBSIDIARY  ACQUISITIONS.  Hereafter create any Subsidiary or divest
itself of any material assets by transferring them to any Subsidiary.

     7.17.  SUBSIDIARY   DIVESTITURES.   Transfer,  sell,  pledge,  encumber  or
otherwise  assign any shares of stock or other  interest  in any  Subsidiary  or
permit any Subsidiary to sell or otherwise  dispose of all of substantially  all
of its assets.

     7.18 PARTNERSHIPS OR JOINT VENTURES. Become or agree to become a general or
limited partner in any general or limited partnership or a joint venturer in any
joint venture.

     7.19.  SUBORDINATED  DEBT.  Make any payment  (principal or interest)  with
respect to Subordinated  Debt, or with respect to any Liabilities  that would be
Subordinated  Debt but for the absence of a  subordination  agreement  in effect
with respect thereto.

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<PAGE>

                                  ARTICLE VIII
                           GRANT OF SECURITY INTEREST

     8.1.  SECURITY  INTEREST.  As security for the payment of the Loans and all
other  Obligations,  now existing or in the future  incurred,  and including any
extensions or renewals or changes in form of the Loans,  any  Overadvances,  and
any other  Liabilities  of Borrower to the Bank,  and all costs and  expenses of
collection thereof,  including,  without  limitation,  attorneys' fees, Borrower
hereby  assigns to Bank and grants to Bank a security  interest in and Lien upon
all right, title and interest of Borrower in and to the Collateral,  whether now
owned or hereafter acquired by Borrower. Notwithstanding the foregoing sentence,
Bank shall have (a) as the sole  security of Bank in the assets of Borrower  for
Borrower's  obligations under the  Reimbursement  Agreement and in regard to the
Bonds, a first (1st) priority security interest in the Bond Equipment and (b) to
secure all other  Obligations,  a second (2nd) priority security interest in the
Bond Equipment,  provided that upon the occurrence of an Event of Default,  Bank
shall be entitled to exercise any and all available remedies against any and all
Collateral, including but not limited to the Bond Equipment.

     8.2.  SALE OF  INVENTORY.  Until  the  occurrence  of an Event  of  Default
hereunder or until expiration of the Commitment Period,  whichever occurs first,
Borrower may use and dispose of the Inventory in the ordinary course of business
where such is not inconsistent  with this Agreement,  provided that the ordinary
course of business does not include a transfer in partial or total  satisfaction
of Liabilities nor a transfer  (other than a sale on terms and conditions  which
would apply if disinterested parties were involved) to an Affiliate of Borrower.

     8.3.  NOTICE TO ACCOUNT  DEBTORS.  At any time after the  occurrence  of an
Event of Default,  but without  prior notice to Borrower,  except such notice as
may be required by law, Bank shall have the right to notify the Account  Debtors
obligated on any or all of the Accounts to make payment thereof directly to Bank
and to take control of all proceeds of any such Accounts. Any such notice by the
Bank to such Account Debtors shall be given by an authorized  representative  of
the Bank. Borrower,  if requested by Bank, shall stamp or cause to be stamped on
each  Account  item in legible  letters  "Pledged  to  Wachovia  Bank,  National
Association"  and shall turn over  physical  possession of the Accounts to Bank.
Borrower  authorizes  Bank to sign and endorse  Borrower's  name upon any check,
draft, money order, or other form of payment of any Account item and to sign and
endorse  satisfactions  and releases of Account items in Borrower's  name. Until
such time as Bank  elects to  exercise  the right to collect  and  enforce  said
Accounts,  Borrower is authorized,  as agent of the Bank, to collect and enforce
said Accounts in Borrower's  name. The costs of such collection and enforcement,
including attorneys' fees and out-of-pocket  expenses and all other expenses and
liabilities  resulting therefrom,  shall be borne solely by Borrower whether the
same are incurred by the Bank or Borrower.

     8.4.  VERIFICATION  OF  ACCOUNTS.  Whether or not an Event of  Default  has
occurred,  any of Bank's  officers,  authorized  representatives,  employees  or
agents shall have the right, at any time or times hereafter, in the name of Bank
or in any  trade or  fictitious  name  selected  by Bank,  or in the name of any
designee of Bank or Borrower, to verify the validity, amount or any other matter
relating to any Accounts by mail, telephone,  telegraph, or otherwise.  Borrower
shall cooperate fully with Bank in an effort to facilitate and promptly conclude
any such verification process.

     8.5 CONTROL.  Borrower will  cooperate with Bank for Bank to obtain control
of the Collateral consisting of deposit accounts, investment property, letter of
credit  rights  and  electronic  chattel  paper.  Borrower  will not  create any

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<PAGE>

electronic  chattel paper without  taking all steps deemed  necessary by Bank to
confer control of the electronic chattel paper upon Bank.

     8.6.  GOVERNMENTAL  ACCOUNTS.  If any of Borrower's Accounts in excess of $
10,000 arise out of contracts with the United States or any department,  agency,
or instrumentality thereof, Borrower will immediately notify the Bank thereof in
writing and execute any  instruments  and take any steps required by the Bank in
order that all monies due and to become due under such Account shall be assigned
to the  Bank and  notice  thereof  given to the  Government  under  the  Federal
Assignment of Claims Act.

     8.7. ACCOUNTS EVIDENCED BY INSTRUMENTS.  If any of Borrower's  Accounts are
or should become evidenced by promissory note, trade acceptances, chattel paper,
chattel mortgages,  conditional sales contracts, or other instruments,  Borrower
will immediately deliver same to Bank, endorsed or assigned with recourse to the
Bank's order and,  regardless  of the form of such  endorsement  or  assignment,
Borrower  hereby waives  presentment,  demand,  notice of dishonor,  protest and
notice of protest and all other notices with respect thereto.

     8.8.  LEASE OF RECORDS.  Borrower  hereby leases to the Bank,  and the Bank
hires from Borrower, for a term which shall be effective so long as the Loans or
other Obligations secured hereby are owing to the Bank by Borrower and until the
Bank has no further  obligation under the Agreement,  all of Borrower's  present
and future books of Accounts,  computer printouts,  magnetic,  digital and laser
tapes and disks,  computer  and  electronic  storage  media,  computer  software
programs, trial balance records, ledgers and cabinets in which they are located,
reflected or maintained, in any way relating to the Collateral,  and all present
and future  supporting  evidence and documents  relating  thereto in the form of
written applications,  credit information, account cards, payment records, trial
balances, correspondence,  delivery receipts, certificates and the like, as well
as the past and current information stored in computer software programs for and
on Borrower's behalf by third parties. Borrower, if requested by Bank, agrees to
legend all of the  foregoing  to indicate the lease  thereof to the Bank.  If an
Event of  Default  occurs,  then,  in  addition  to all of the other  rights and
remedies of the Bank  herein,  the Bank will have the right  forthwith or at any
time thereafter to remove from Borrower's premises all of the foregoing and keep
and retain the same in Bank's  possession until the Loans and other  Obligations
secured  hereby  shall have been fully paid and  discharged  and the Bank has no
further obligation under the Agreement. The provisions of this Section shall not
be deemed to diminish or  contravene  the  security  interest of the Bank in the
Borrower's  General  Intangibles  or in the property,  materials,  and interests
described  in this  Section  but shall be deemed to be in addition to any rights
the Bank may have with respect to the Borrower's grant of a security interest in
its General Intangibles to the Bank.

     8.9. LICENSE OF RIGHTS.  Bank is hereby granted a license or other right to
use, without charge,  Borrower's labels, patents,  copyrights,  rights of use of
any name, trade secrets,  tradenames,  trademarks and advertising  matter or any
property of a similar  nature as it pertains to the  Collateral,  in advertising
for sale and in selling any Collateral, and Borrower's rights under all licenses
and all franchise agreements shall inure to Bank's benefit.

     8.10.  ATTORNEY-IN-FACT.  Borrower hereby  irrevocably  designates,  makes,
constitutes and appoints Bank (and all Persons designated by Bank) as Borrower's
true and lawful  attorney (and  agent-in-fact)  and Bank, or Bank's agent,  may,

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<PAGE>

without  notice to Borrower and in either  Borrower's or Bank's name, but at the
cost and expense of Borrower:

     8.10.1.  At such time or times hereafter as Bank or said agent, in its sole
discretion,  may  determine,  endorse  Borrower's  name  on any  checks,  notes,
acceptances,  drafts,  money orders or any other evidence of payment or proceeds
of the  Collateral  which  come  into the  possession  of Bank or  under  Bank's
control; and

     8.10.2.  At such time or times as Bank or its agent in its sole  discretion
may determine  (and  irrespective  of whether an Event of Default  exists):  (i)
demand payment of the Accounts from the Account Debtors,  enforce payment of the
Accounts by legal  proceedings  or  otherwise,  and  generally  exercise  all of
Borrower's  rights and remedies with respect to the  collection of the Accounts;
(ii)  settle,  adjust,  compromise,  discharge or release any of the Accounts or
other Collateral;  (iii) sell or collect any of the Accounts or other Collateral
upon such  terms,  and for such  amounts and at such time or times as Bank deems
advisable;  (iv) take  possession,  in any  manner,  of any item of  payment  or
proceeds  relating to any Collateral and apply the same to the Obligations;  (v)
prepare,  file and sign  Borrower's  name to a proof of claim in  bankruptcy  or
similar document against any Account Debtor or to any notice of lien, assignment
or  satisfaction  of lien or  similar  document  in  connection  with any of the
Collateral; (vi) receive, open and dispose of all mail addressed to Borrower and
to notify postal  authorities to change the address for delivery thereof to such
address as Bank may  designate;  (vii)  endorse the name of Borrower upon any of
the items of payment or proceeds relating to any Collateral and deposit the same
to the account of Bank or any other bank on account of the  Obligations;  (viii)
endorse  the name of  Borrower  upon any chattel  paper,  document,  instrument,
invoice,  freight bill, bill of lading or similar document or agreement relating
to the  Accounts,  Inventory  and any  other  Collateral;  (ix)  use  Borrower's
stationery  and sign the name of Borrower to  verifications  of the Accounts and
notices  thereof to Account  Debtors;  (x) use the  information  recorded  on or
contained in any data  processing  equipment and computer  hardware and software
relating  to the  Accounts,  Inventory,  and any other  Collateral  and to which
Borrower has access;  (xi) make and adjust  claims under  policies of insurance;
and (xii) for and in the name of  Borrower to give  instructions  and direct any
bank or financial  institution in which proceeds of the Collateral are deposited
to turn over said  proceeds  to Bank;  and  (xiii) do all other  acts and things
necessary, in Bank's determination, to fulfill Borrower's obligations under this
Agreement.

                                   ARTICLE IX
                   ADDITIONAL REPRESENTATIONS, COVENANTS, AND
                        AGREEMENTS RELATING TO COLLATERAL

     9.1.  RELIANCE  ON  STATEMENTS.  With  respect  to all  Accounts,  Borrower
represents  and  warrants  to Bank  that  Bank may rely,  in  determining  which
Accounts are Eligible Accounts,  on all statements and  representations  made by
Borrower with respect to any Account or Accounts, and unless otherwise indicated
in writing to Bank, that with respect to each Account:

     9.1.1.  It is genuine and in all respects what it purports to be, and it is
not evidenced by a judgment;

     9.1.2.  It arises out of a completed,  bona fide sale and delivery of goods
or rendition of services by Borrower in the ordinary  course of its business and
in accordance with the terms and conditions of all purchase orders, contracts or

                                       35
<PAGE>

other  documents  relating  thereto and forming a part of the  contract  between
Borrower and the Account Debtor;

     9.1.3.  It is for a liquidated  amount  maturing as stated in the duplicate
invoice  covering  such sale or rendition of services,  a copy of which has been
furnished or is available to Bank;

     9.1.4. Such Account, and Bank's security interest therein, is not, and will
not be in the future, subject to any offset, Lien, deduction,  defense, dispute,
counterclaim  or any other adverse  condition  except for disputes  resulting in
returned  goods  where  the  amount  in  controversy  is  deemed  by  Bank to be
immaterial,  and each such  Account is  absolutely  owing to Borrower and is not
contingent in any respect or for any reason;

     9.1.5.  Borrower has made no agreement with any Account  Debtor  thereunder
for any deduction therefrom, except discounts or allowances which are granted by
Borrower in the ordinary course of its business for prompt payment and which are
reflected  in the  calculation  of the net  amount  of each  respective  invoice
related thereto;

     9.1.6.  There are no facts,  events or occurrences  which in any way impair
the  validity  or  enforceability  thereof or tend to reduce the amount  payable
thereunder from the face amount of the invoice and statements  delivered to Bank
with respect thereto;

     9.1.7. To the best of Borrower's  knowledge,  the Account Debtor thereunder
(a) had the  capacity  to contract  at the time any  contract or other  document
giving rise to the Account was executed  and (b) such Account  Debtor was and is
Solvent;

     9.1.8.  Borrower has no knowledge of any fact or  circumstance  which would
impair  the  validity  or  collectibility  of the  Account,  and to the  best of
Borrower's knowledge there are no proceedings or actions which are threatened or
pending against any Account Debtor thereunder which might result in any material
adverse   change  in  such   Account   Debtor's   financial   condition  or  the
collectibility of such Account; and

     9.1.9.  Borrower  will have paid or  provided  for the payment of all taxes
arising from the transaction creating the Account.

     9.2.  NOTIFICATION.  Borrower shall  immediately  notify Bank of any event,
occurrence or  circumstance  which causes any  representation  pertaining to any
Account set forth in Section 9.1 above to cease to be true in all respects,  and
Borrower will promptly notify Bank (a) if any Account Debtor or any Affiliate of
any Account  Debtor has or may have any right of setoff,  deduction,  or defense
against  any  Account or (b) if any such  Account  Debtor or  Affiliate  of such
Account  Debtor has or may have a  contractual  or  business  relationship  with
Borrower  such that at any time such  right may exist or be  asserted  or (c) if
Borrower  ships any  inventory or goods or furnishes  any services to any Person
which has or may have any right of  setoff,  deduction  or defense  against  any
asset, including any Account, of Borrower.

     9.3.  AFFIRMATION  OF  REPRESENTATIONS.  Each request for a loan or advance
made by Borrower  pursuant to this  Agreement or any of the other Loan Documents
shall  constitute  (a) an automatic  representation  and warranty by Borrower to
Bank that there does not then  exist any  default or Event of Default  and (b) a
reaffirmation as of the date of said request that all of the representations and
warranties of Borrower  contained in this Agreement and the other Loan Documents

                                       36
<PAGE>

are true in all  material  respects  except  for any  changes  in the  nature of
Borrower's business or operations that would render the information contained in
any exhibit attached hereto either inaccurate or incomplete, so long as Bank has
consented  to such  changes or such  changes  are  expressly  permitted  by this
Agreement.

     9.4.  WAIVERS.  Borrower  hereby  releases  and waives any and all actions,
claims,  causes of action,  demands and suits which it may ever have against the
Bank as a result of any possession,  collection,  settlement, compromise or sale
by Bank of any of the  Collateral  upon the  occurrence  of an Event of  Default
hereunder,   notwithstanding   the  effect  of  such   possession,   collection,
settlement,  compromise or sale upon the business of Borrower. Said waiver shall
include all causes of action and claims  which may result  from the  exercise of
the power of attorney  conferred  upon Bank in Section 8.10.  The failure at any
time or times hereafter to require strict  performance by Borrower of any of the
provisions,  warranties, terms and conditions contained in this Agreement or any
other agreement,  document or instrument now or hereafter  executed by Borrower,
and delivered to the Bank, shall not waive, affect, or diminish any right of the
Bank thereafter to demand strict  compliance and performance  therewith and with
respect to any other provisions,  warranties,  terms and conditions contained in
such agreements,  documents or instruments,  and any waiver of default shall not
waive or affect any other  default,  whether  prior or subsequent  thereto,  and
whether the same are of a different type.  None of the  warranties,  conditions,
provisions and terms contained in the Agreement or any other agreement, document
or  instrument  now or hereafter  executed by Borrower and delivered to the Bank
shall be deemed to have been  waived by any act or  knowledge  of the Bank,  its
agents,  representatives,  officers or  employees,  but only by an instrument in
writing signed by an officer of the Bank and directed to the Borrower specifying
such waiver.

     9.5.  DISCHARGE OF TAXES AND LIENS.  At its option,  the Bank may discharge
taxes,  Liens,  security  interests or other  encumbrances at any time levied or
placed on the Collateral and may pay for the maintenance and preservation of the
Collateral.  Borrower  agrees to reimburse the Bank, on demand,  for any payment
made or  expense  incurred  by Bank  pursuant  to the  foregoing  authorization,
including, without limitation, attorneys' fees.

     9.6. INSURANCE.  Without limiting any other provision hereof, Borrower will
keep the Collateral  insured in amounts equal to its full insurable value,  with
companies,  and against such risks as may be satisfactory to the Bank.  Borrower
will pay the costs of all such insurance and deliver  policies  evidencing  such
insurance to the Bank with mortgagee loss payable  clauses in favor of the Bank.
Borrower hereby assigns to the Bank all right to receive  proceeds,  directs any
insurer to pay all proceeds  directly to the Bank,  and  authorizes  the Bank to
endorse  any  check or  draft  for  such  proceeds  and  apply  the same  toward
satisfaction of the Loans and other Obligations secured hereby.

     9.7. COMPLETE RECORDS,  INSPECTION RIGHTS.  Borrower will at all times keep
accurate  and  complete  records of the  Collateral,  and the Bank or its agents
shall  have the  right to call at  Borrower's  place or places  of  business  at
intervals to be determined by Bank, upon reasonable notice and during Borrower's
regular business hours,  and without  hindrance or delay, to inspect and examine
the Inventory and the Equipment and to inspect, audit, check, and make abstracts
from  the  books,  records,  journals,  orders,  receipts,  computer  printouts,
correspondence  and  other  data  relating  to the  Collateral  or to any  other

                                       37
<PAGE>

transactions  between the parties hereto. If requested by Bank,  Borrower agrees
to make its books,  records,  journals,  orders,  receipts,  computer printouts,
correspondence,  and other data  relating  to the  Collateral  available  at the
Bank's main office for inspection, audit and checking by the Bank or its agents.

     9.8.  U.C.C.  FINANCING  STATEMENT.  The Borrower agrees that Bank may file
such UCC financing  statements in regard to this Agreement and the Collateral as
Bank shall determine.

                                    ARTICLE X
                       EVENTS OF DEFAULT; CERTAIN REMEDIES

     10.1. EVENTS OF DEFAULT. The occurrence of any one or more of the following
events shall constitute an Event of Default hereunder:

     10.1.1.  Payment Default. If Borrower shall fail to make any payment of any
installment  of  principal  or  interest on the Notes when and as the same shall
become due and  payable,  whether at stated  maturity,  upon  expiration  of the
Commitment Period, by declaration, upon acceleration, or otherwise; or

     10.1.2. Fees and Expenses. If Borrower shall fail to pay when due any other
expense,  fee or charge  provided for in this  Agreement  and such failure shall
continue for a period of ten (10) days; or

     10.1.3. Other Defaults. If Borrower shall fail for a period of fifteen (15)
days after written  notice from Bank to perform,  keep, or observe any covenant,
agreement or provision of any of the following Sections of this Agreement:  6.4,
6.9, 6.10,  6.11,  6.14,  6.17 and 6.20; or if Borrower shall fail or neglect to
perform,  keep or observe, or shall default with respect to, any other covenant,
agreement  or  provision  contained  in this  Agreement  (other than a covenant,
agreement  or  provision  a default  in the  performance  of which is dealt with
specifically elsewhere in this Section 10.1); or

     10.1.4.  Representations False. If any warranty,  representation,  or other
statement made or furnished to Bank by or on behalf of Borrower or in any of the
Loan  Documents  proves to be false or misleading  in any material  respect when
made or furnished; or

     10.1.5.  Financial  Difficulties.  If the  Borrower  shall be  involved  in
financial difficulties as evidenced.

     (a) by its admission in writing of its inability to pay its debts generally
as they become due or of its ceasing to be Solvent;

     (b) by its filing a petition in bankruptcy or for reorganization or for the
adoption  of an  arrangement  under the U.S.  Bankruptcy  Code (as now or in the
future amended) or any similar law regarding  debtors' rights and remedies or an
admission seeking the relief therein provided;

     (c) by its making a general assignment for the benefit of its creditors;

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<PAGE>

     (d) by its  consenting  to  the  appointment  of a  receiver  for  all or a
substantial part of its property;

     (e) by its being adjudicated a bankrupt;

     (f) by the entry of a court order  appointing a receiver or trustee for all
or a substantial part of its property without its consent, which order shall not
be vacated,  set aside or stayed within ninety (90) days from the date of entry;
or

     (g) by the assumption of custody or  sequestration  by a court of competent
jurisdiction  of all or  substantially  all of its  property,  which  custody or
sequestration  shall  not be  suspended  or  terminated  within 60 days from its
inception; or

     10.1.6.  ERISA.  If a Reportable  Event shall occur which Bank, in its sole
discretion,   shall  determine  in  good  faith  constitutes   grounds  for  the
termination by the Pension Benefit  Guaranty  Corporation of any Plan or for the
appointment by the appropriate United States district court of a trustee for any
Plan,  or if any Plan shall be terminated or any such trustee shall be requested
or appointed,  or if Borrower is in "default" (as defined in Section 4219(c) (5)
of ERISA) with  respect to  payments  to a  Multiemployer  Plan  resulting  from
Borrower's complete or partial withdrawal from such Plan; or

     10.1.7.  Cancellation  of  Subordination  Agreement.  If any  subordination
agreement  hereafter  executed by any creditor of Borrower or  pertaining to any
Subordinated Debt should be canceled, terminated, or breached; or

     10.1.8. Default on Other Obligations.  If Borrower shall default in payment
of more than $10,000 due on any Liabilities of Borrower to others or if Borrower
shall  default  under any loan or  security  agreement  with others or under any
material  lease  involving a payment of more than  $10,000 and any such  default
shall not be cured within 30 days after written  notice to Borrower from Bank or
any holder; or

     10.1.9.  Judgments.  If a final judgment for the payment of money in excess
of $10,000  shall be rendered  against the  Borrower  and the same shall  remain
undischarged  for a  period  of 30 days  during  which  execution  shall  not be
effectively  stayed,  unless  such  judgment  is fully  covered  by  collectible
insurance; or

     10.1.10.  Actions.  If Borrower  shall be criminally  indicted or convicted
under any law that could lead to a forfeiture of any property of Borrower; or

     10.1.11. Uninsured Losses;  Unauthorized  Dispositions.  Any material loss,
theft, damage or destruction not fully covered by insurance (as required by this
Agreement  and  subject to such  deductibles  as Bank  shall  have  agreed to in
writing),  or sale,  lease or encumbrance of any of the Collateral or the making
of any levy,  seizure,  or attachment  thereof or thereon except in all cases as
may be specifically permitted by other provisions of this Agreement; or

     10.1.12.  Adverse Changes. There shall occur any material adverse change in
the financial condition or business prospects of Borrower; or

     10.1.13.  Collateral.  If a creditor of Borrower shall obtain possession of
any of the Collateral by any legal means; or

                                       39
<PAGE>

     10.1.14. Business Disruption;  Condemnation.  There shall occur a cessation
of  a  substantial  part  of  the  business  of  Borrower  for  a  period  which
significantly  affects  Borrower's  capacity  to  continue  its  business,  on a
profitable basis; or Borrower shall suffer the loss or revocation of any license
or permit now held or hereafter  acquired by Borrower  which is necessary to the
continued or lawful  operation of its business;  or Borrower  shall be enjoined,
restrained  or in any way  prevented by court,  governmental  or  administrative
order from conducting all or any material part of its business  affairs;  or any
material lease or agreement pursuant to which Borrower leases,  uses or occupies
any of its properties shall be canceled or terminated prior to the expiration of
its  stated  term;  or any  part  of  the  Collateral  shall  be  taken  through
condemnation  or  the  value  of  such  properties  shall  be  impaired  through
condemnation; or

     10.1.15.  Bank  Insecurity.  Bank shall  reasonably  and in good faith deem
itself insecure; or

     10.1.16.  Change in Control.  If any of the present  executive  officers of
Borrower  should  resign or be removed or if there  occurs a change in  majority
stock ownership of Borrower; or

     10.1.17.  Subordination Agreements. If a breach or default shall occur with
respect to any  subordination  agreement  hereafter  executed by any creditor of
Borrower  (including any  Affiliate),  or if any said agreement  shall otherwise
terminate or cease to have legal effect; or

     10.1.18. Other Documents. If a default or event of default or breach occurs
under any Loan Document (other than the breaches enumerated in Sections 10. 1. 1
through 10. 1. 17 above), or under or with respect to any of the Obligations, or
under any  other  note,  evidence  of  indebtedness,  loan  agreement,  security
agreement, guaranty, pledge, mortgage, assignment, or security document executed
by Borrower and delivered to the Bank.

     The Borrower  agrees that default under any Loan Document shall  constitute
default with respect to all Loan Documents and vice versa.

     10.2. REMEDIES. Upon or at any time after the occurrence of any one or more
of the foregoing  Events of Default,  Bank or the holder of the Notes may at its
option (a) proceed to protect  and enforce its rights by suit in equity,  action
at law and/or the appropriate  proceeding either for specific performance of any
covenant  or  condition  contained  in the  Notes or in any Loan  Document,  (b)
terminate  the  Commitment  Period  and  cease  disbursing  advances  under  the
Revolving  Note,  and/or (c) declare  the unpaid  balance of the Loans and Notes
together  with  all  accrued  interest  to be  forthwith  due and  payable,  and
thereupon  such balance  shall become so due and payable  without  presentation,
protest  or  further  demand  or notice  of any  kind,  all of which are  hereby
expressly waived.

     Without  limiting  the  foregoing,  upon  the  occurrence  of any  Event of
Default, and at any time thereafter,  Bank shall have the rights and remedies of
a secured party under the Uniform  Commercial Code in addition to the rights and
remedies  provided  herein  or in any  other  instrument  or paper  executed  by
Borrower.  The Bank may require the Borrower to assemble the  Equipment  and the
Inventory and to make the same available to the Bank at a place to be designated
by the  Bank  which  is  reasonably  convenient  to  both  parties.  Unless  the
Collateral is perishable or threatens to decline  speedily in value,  or is of a

                                       40
<PAGE>

style  customarily  sold on a  recognized  market,  the Bank will give  Borrower
reasonable  notice of the time after  which any private  sale or other  intended
disposition thereof is to be made. The requirement of reasonable notice shall be
met if such notice is mailed  postage  prepaid to the Borrower at least ten (10)
days before the time of such sale or  disposition.  The  Borrower  shall pay the
Bank on demand any and all expenses,  including  legal  expenses and  reasonable
attorneys'  fees,  incurred or paid by the Bank in  protecting  or enforcing the
Loans and all other  Obligations  secured  hereby  and other  rights of the Bank
hereunder, including its right to take possession of the Collateral.

     The Bank shall not be liable for  failure to  collect  the  Accounts  or to
enforce  any  contract  rights or for any action or  omission on the part of the
Bank, its officers,  agents and employees,  except willful misconduct. No remedy
herein  conferred  upon, or reserved to, the Bank is intended to be exclusive of
any other remedy or remedies,  including  those of any note or other evidence of
Liabilities  held by the Bank, and each and every remedy shall be cumulative and
shall be in addition to every other remedy  given  hereunder or now or hereafter
existing in law or in equity.  Exercise or omission to exercise any right of the
Bank shall not affect any subsequent right of the Bank to exercise the same.

     Borrower waives notice prior to Bank's taking  possession or control of any
of the  Collateral  or any bond or security  that might be required by any court
prior to allowing Bank to exercise any of Bank's  remedies,  including,  without
limitation, the issuance of an immediate writ of possession.

     The Borrower agrees that the Bank may apply the net proceeds  received from
the Collateral  among the Loans and the Obligations  toward  satisfaction of the
same in its sole discretion.  Any such proceeds  remaining after satisfaction in
full of the Loans, the Obligations, and the other obligations and liabilities of
the Borrower to the Bank shall be distributed as required by Applicable Laws.

     10.3.  RIGHT OF  SET-OFF.  Upon and  after the  occurrence  of any Event of
Default, Bank may, and is hereby authorized by Borrower to, at any time and from
time to time, to the fullest  extent  permitted by Applicable  Laws, and without
advance notice to Borrower (any such notice being expressly waived by Borrower),
set-off and apply any and all  deposits  (general  or  special,  time or demand,
provisional  or final) at any time held and any other  indebtedness  at any time
owing by Bank to, or for the credit or the account of,  Borrower  against any or
all of the Loans  and  Obligations  and other  liabilities  and  obligations  of
Borrower now or hereafter  existing whether or not such obligations have matured
and  irrespective  of whether Bank has exercised any other rights that it has or
may have with respect to the Loans and  Obligations  and other  liabilities  and
obligations,   including,  without  limitation,  any  acceleration  rights.  The
aforesaid right of set-off may be exercised by Bank against  Borrower or against
any trustee in  bankruptcy,  debtor in  possession,  assignee for the benefit of
creditors,  receiver, or execution, judgment or attachment creditor of Borrower,
notwithstanding  the  fact  that  such  right of  set-off  shall  not have  been
exercised by Bank prior to the making,  filing or issuance, or service upon Bank
of, or of notice of, any such petition, assignment for the benefit of creditors,

                                       41
<PAGE>

appointment or  application  for the  appointment of a receiver,  or issuance of
execution,  subpoena, order or warrant. Bank agrees to notify Borrower after any
such  set-off  and  application,  provided  that the failure to give such notice
shall not affect the  validity of such  set-off and  application.  The rights of
Bank  under this  Section  are in  addition  to the other  rights  and  remedies
(including, without limitation, other rights of setoff) which Bank may have.

                                   ARTICLE XI
                                 INDEMNIFICATION

     Borrower  agrees to  defend,  indemnify  and hold  harmless  the Bank,  its
directors,   officers,   employees,    accountants,    attorneys,   and   agents
(collectively,  the "Indemnitees") from and against any and all claims, demands,
judgments,  damages,  actions, causes of action,  injuries,  orders,  penalties,
costs and expenses  (including  attorneys'  fees and costs of court) of any kind
whatsoever  arising  out of or  relating to any breach or default by Borrower or
any other  Person under this  Agreement  or any Loan  Document or the failure of
Borrower  to  observe,  perform or  discharge  Borrower's  duties  hereunder  or
thereunder.  Without  limiting  the  generality  of  the  foregoing,  Borrower's
obligation to indemnify  Bank shall include  indemnity  from any and all claims,
demands,  judgments,  damages,  actions,  causes of  action,  injuries,  orders,
penalties,  costs  and  expenses  arising  out  of or  in  connection  with  the
activities of the Borrower, its predecessors in interest, third parties who have
trespassed on Borrower's property, or parties in a contractual relationship with
Borrower, whether or not occasioned wholly or in part by any condition, accident
or event caused by an act or omission of the  Indemnitees,  which: (a) arise out
of the actual,  alleged or threatened discharge,  dispersal,  release,  storage,
treatment,   generation,   disposal,   or  escape  of   radioactive   materials,
radioactivity,  pollutants or other toxic or hazardous substances, including any
solid,  liquid,  gaseous,  or thermal irritant or contaminant,  including smoke,
vapor, soot, fumes, acids, alkalis, chemicals, and waste (including materials to
be recycled, reconditioned or reclaimed); or (b) actually or allegedly arise out
of the use,  specification,  or inclusion of any product,  material,  or process
containing  chemicals  or  radioactive  material,  the  failure  to  detect  the
existence or proportion of chemicals or radioactive  material in the soil,  air,
surface  water or  groundwater,  or the  performance  or failure to perform  the
abatement of any  pollution  source or the  replacement  or removal of any soil,
water,  surface  water,  or  groundwater  containing  chemicals  or  radioactive
material;  or (c) arises out of or relates to breach by  Borrower  of any of the
provisions  of Section 5.16 hereof  relating to  Environmental  Regulations.  In
addition,  Borrower  will  indemnify and hold Bank harmless from and against any
liability,  claim,  cost or expense incurred by Bank or imposed against Bank for
any stamp  tax,  intangible  tax,  or other  tax,  fee or charge  imposed by any
governmental entity arising out of or relating to the Notes or this Agreement or
the transactions anticipated herein.

                                   ARTICLE XII
                        COSTS AND EXPENSES, MISCELLANEOUS

     12.1. COSTS OF PREPARATION;  BROKERS FEES. Borrower shall bear all expenses
of the Bank in connection with the Loans and with the investigation,  review and
approval of this  transaction,  the  preparation  of the  Agreement and the Loan
Documents,  and the  issuance  and  delivery  of the  Notes  to Bank and also in
connection with any amendment or modification  thereto,  and the  administration
thereof,  including,  without  limitation,  (a) all  legal  fees,  expenses  and
disbursements and other actual third-party  expense  reimbursements  incurred or
sustained  by  Bank  in  connection  with  this  transaction,  (b)  all  travel,
appraisal,  audit,  search and filing  fees  incurred  or  sustained  by Bank in

                                       42
<PAGE>

connection with this  transaction or the  administration  of the Loans;  (c) all
recording and filing fees,  intangibles  taxes,  documentary and revenue stamps,
other  taxes or other  expenses  and  charges  payable in  connection  with this
Agreement, the Notes or any Loan Document and (d) all costs, expenses (including
fees and expenses of outside consultants), related to the administration of this
Agreement or any of the other Loan Documents and the  transactions  contemplated
hereby and thereby and/or periodic audits and appraisals  performed by Bank. The
Borrower  agrees to indemnify  and save Bank  harmless  against all broker's and
finder's fees, if any.

     12.2. OTHER COSTS AND EXPENSES. If, at any time or times hereafter, whether
before or after the occurrence of an Event of Default,  the Bank employs counsel
to advise or provide other  representation with respect to this Agreement or any
Loan Document,  or to collect the balance of the Loans, or to take any action in
or with respect to any suit or proceeding  relating to this  Agreement or any of
the Loan Documents,  or to protect,  collect,  or liquidate the Collateral or to
attempt  to  enforce  any  security  interest  or Lien  granted  to the  Bank by
Borrower; then in any such events, all of the reasonable attorneys' fees arising
from such services, and any expenses,  costs and charges relating thereto, shall
constitute additional obligations of Borrower payable on demand of the Bank.

     12.3. LEGAL COUNSEL. Borrower acknowledges and agrees that legal counsel to
Bank does not  represent  Borrower as  Borrower's  attorney,  that  Borrower has
retained (or has had an opportunity to retain) counsel of its own choice and has
not and will not rely upon any advice  from  Bank's  counsel.  In no event shall
Borrower's  reimbursement  of  expenses  pursuant  to this  Agreement  (even  if
effected  by  payment  directly  by  Borrower  to Bank's  counsel)  be deemed to
establish any attorney-client relationship between Borrower and Bank's counsel.

     12.4. NO WAIVER. No waiver of any Event of Default hereunder, and no waiver
of any default or Event of Default under any other Loan Document shall extend to
or affect any  subsequent  or other then  existing  default or shall  impair any
rights,  remedies  or  powers  of  Bank.  No delay  or  omission  of Bank or any
subsequent holder of the Notes to exercise any right, remedy, power or privilege
hereunder  after the  occurrence  of such  default or Event of Default  shall be
construed as a waiver of any such default, or acquiescence therein.

     12.5.  HEADINGS.  Except for the  definitions set forth in Section 1.1, the
headings  of  the  articles,  sections,  paragraphs  and  subdivisions  of  this
Agreement are for convenience of reference only, are not to be considered a part
hereof, and shall not limit or otherwise affect any of the terms hereof.

     12.6.  MARSHALLING  OF ASSETS;  PAYMENTS SET ASIDE.  Bank shall be under no
obligation  to  marshall  any assets or  securities  in favor of Borrower or any
other Person or against or in payment of any or all of the  Obligations.  To the
extent  that  any  sum  credited   against  the   Obligations  is   subsequently
invalidated, declared to be fraudulent or preferential, set aside or required to
be repaid to a trustee,  receiver or any other party under any  bankruptcy  law,
state or federal law, common law or equitable cause,  then to the extent of such
recovery,  the Obligations or part thereof originally  intended to be satisfied,
and all Liens,  rights and remedies therefor,  shall be revived and continued in
full force and effect as if such  payment had not been made or such  enforcement
or setoff had not occurred.

                                       43
<PAGE>

     12.7. SURVIVAL OF COVENANTS. All covenants, agreements, representations and
warranties made herein and in certificates or reports delivered  pursuant hereto
shall be deemed to have been material and relied on by Bank, notwithstanding any
investigation  made by or on behalf of Bank, and shall survive the execution and
delivery to Bank of the Notes or Loan Document.

     12.8.  ADDRESSES.  Any  notice or  demand  which by any  provision  of this
Agreement  is  required  or  provided  to be given  shall be deemed to have been
sufficiently  given or served for all purposes by (i) being  delivered in person
to the party to whom the notice or demand is  directed  or (ii) by being sent as
first class mail, postage prepaid,  in either event to the following address: If
to Borrower,  4350 Peachtree  Industrial Avenue,  Suite 100,  Norcross,  Georgia
30071;  or if any other  address  shall at any time be designated by Borrower in
writing to the holders of record of the Notes at the time of such designation to
such other address;  and if to Bank,  171 17th Street,  5th Floor,  Atlanta,  GA
30363;  or if any other  address  shall at any time be  designated in writing to
Borrower, to such other address.  Notwithstanding the foregoing, no notice shall
be effective as to Bank until actually received by Bank. Any written notice that
is not sent in  conformity  with the  provisions  hereof shall  nevertheless  be
effective  on the date that such  notice is  actually  received  by the  noticed
party.

     12.9. VENUE AND JURISDICTION. Borrower agrees that any legal action brought
by the Bank to  collect  the  Loans or any  Obligation  or to  assert  any claim
against Borrower under any Loan Document, or any part thereof, may be brought in
any court in the State of Georgia having subject matter jurisdiction, waives its
right to object to any such  action on grounds  it is  brought  in the  improper
venue, and irrevocably  consents that any legal action or proceeding  against it
under,  arising out of, or in any manner relating to the Loans, the Obligations,
or any Loan  Document  may be brought in the  Superior  Court of Fulton  County,
Georgia or in any other court of  jurisdiction  in Fulton County,  Georgia or in
the U.S. District Court for the Northern District of Georgia.  Borrower,  by the
execution of this Agreement,  expressly and  irrevocably  assents and submits to
the personal  jurisdiction  of any such court in any such action or  proceeding.
Borrower  consents  to the  service of process  relating  to any such  action or
proceeding by mail to the address set forth in this Agreement.

     12.10. CONTINUING OBLIGATION;  BENEFITS. This Agreement, and each and every
provision hereof,  is a continuing  obligation and shall (a) be binding upon the
Borrower  and the  Bank,  their  successors  and  assigns,  and (b) inure to the
benefit of and be enforceable by the Borrower and Bank and their  successors and
assigns;  provided,  that the  Borrower  may not  assign all or any part of this
Agreement  without  the prior  written  consent of Bank,  which  consent  may be
granted or withheld in the sole discretion of Bank.

     12.11.  CONTROLLING  LAW. This Agreement shall be governed by and construed
in accordance with the laws of the State of Georgia; provided,  however, that if
any of the Collateral shall be located in any  jurisdiction  other than Georgia,
the laws of such  jurisdiction  shall govern the  applicable law for the method,
manner and procedure for foreclosure of Bank's lien upon such Collateral and the
enforcement of Bank's other remedies in respect of such Collateral to the extent
that the laws of such  jurisdiction are different from or inconsistent  with the
laws of Georgia.

                                       44
<PAGE>

     12.12. STANDARD OF REVIEW. Any document,  writing or instrument required or
permitted  to be  delivered  to  Bank  under  this  Agreement  shall  be  deemed
satisfactory  only if approved by Bank in the  exercise of its sole  discretion,
and any act or approval  permitted to be done by Bank under this Agreement shall
be in Bank's  sole  discretion.  Where in this  Agreement  reference  is made to
Bank's "discretion",  or "sole discretion",  said reference shall mean that with
respect to the matter so designated,  Bank shall have the absolute right to make
decision  with respect  thereto and shall not be subject to any standard of good
faith, fair dealing, reasonableness,  or any other standard implied by any court
or imposed by law, it being the  intention  of the parties  that the decision of
the Bank with respect to said matter shall be absolutely final and binding.

     12.13.  PARTICIPATION.  Borrower acknowledges that Bank may, at its option,
sell participation interests in the Loans to participating banks. The amounts of
any such participations  shall be determined solely by the Bank. Borrower agrees
with each present and future  participant in the Loans,  the names and addresses
of which will be  furnished  to  Borrower,  that if an Event of  Default  should
occur,  each  present  and future  participant  shall have all of the rights and
remedies  of Bank  with  respect  to any  deposit  due from any  participant  to
Borrower. The execution by a participant of a participation agreement with Bank,
and the  execution  by Borrower of this  Agreement,  regardless  of the order of
execution,  shall evidence an agreement between Borrower and said participant in
accordance with the terms of this Section.

     12.14. MISCELLANEOUS. The Loan Documents, this Agreement and the agreements
and instruments executed in connection with this Agreement constitute the entire
agreement between Borrower and Bank in regard to the subject matter hereof. This
Agreement may not be varied,  altered, or amended except by a written instrument
executed by an authorized officer of the Bank. This Agreement may be executed in
any number of counterparts, each of which, when executed and delivered, shall be
an original,  but such counterparts  shall together  constitute one and the same
instrument.  Any  provision  in this  Agreement  which may be  unenforceable  or
invalid   under  any  law   shall  be   ineffective   to  the   extent  of  such
unenforceability  or invalidity without affecting the enforceability or validity
of any other provisions hereof.

     12.15.  GENERAL WAIVERS. To the fullest extent permitted by Applicable Law,
Borrower  waives (a  presentment,  demand and protest and notice of presentment,
protest,  default,  nonpayment,   maturity,  release,  compromise,   settlement,
extension or renewal of any or all commercial paper, accounts,  contract rights,
documents, instruments, chattel paper and guaranties at any time held by Bank on
which  Borrower  may in any way be  liable;  (b) notice  prior to Bank's  taking
possession  or control of any of the  Collateral  or any bond or security  which
might be required by any court prior to allowing  Bank to exercise any of Bank's
remedies,  including the issuance of an immediate  writ of  possession;  (c) the
benefit  of all  valuation,  appraisement  and  exemption  laws;  (d) any  right
Borrower  may have upon  payment in full of the  Obligations  to require Bank to
terminate  its  security  interest  in the  Collateral  until the  execution  by
Borrower  of an  agreement  indemnifying  Bank from any loss or damage  Bank may
incur as the result of dishonored  checks or other items of payment  received by
Bank from Borrower or any Account Debtor and applied to the Obligations; and (e)
notice of Bank's acceptance hereof or of any Loan Document.

     12.16.  MAXIMUM  INTEREST.  Regardless of any  provision  contained in this
Agreement or any of the Loan  Documents,  in no event shall the aggregate of all
amounts that are contracted for,  charged or collected  pursuant to the terms of
this  Agreement,  the Notes or any of the Loan  Documents,  and that are  deemed
interest under  Applicable  Laws,  exceed the Maximum Rate. No provision of this

                                       45
<PAGE>

Agreement  or in any of the Loan  Documents or the exercise by Bank of any right
hereunder or under any Loan Document or the prepayment by Borrower of any of the
Obligations or the occurrence of any contingency whatsoever,  shall entitle Bank
to charge or receive,  or to require  Borrower  to pay,  interest or any amounts
deemed  interest  by  Applicable  Laws (such  amounts  being  referred to herein
collectively  as  "Interest")  in excess of the Maximum Rate, and all provisions
hereof or in any Loan  Document  which may  purport to require  Borrower  to pay
Interest  exceeding the Maximum Rate shall be without binding force or effect to
the extent only of the excess of Interest over such Maximum  Rate.  Any Interest
charged  or  received  in  excess  of the  Maximum  Rate  ("Excess"),  shall  be
conclusively  presumed to be the result of an accident and bona fide error,  and
shall, to the extent received by Bank, at the option of Bank,  either be applied
to reduce the principal  amount of the Obligations or returned to Borrower.  The
right to accelerate the maturity of any of the Obligations  does not include the
right to accelerate  unaccrued interest,  and no such interest will be collected
by Bank.  All monies paid to Bank  hereunder or under any of the Loan  Documents
shall be  subject  to any  rebate  of  unearned  interest  as and to the  extent
required by  Applicable  Laws.  By the  execution  of this  Agreement,  Borrower
covenants  that (a) the  credit or return of any  Excess  shall  constitute  the
acceptance by Borrower of such Excess, and (b) Borrower shall not seek or pursue
any other remedy,  legal or equitable,  against Bank,  based in whole or in part
upon  contracting  for,  charging  or  receiving  any  Interest in excess of the
Maximum Rate. For the purpose of determining  whether or not any Excess has been
contracted for, charged or received by Bank, all interest at any time contracted
for,  charged or received from Borrower in connection with this Agreement shall,
to the extent  permitted by Applicable Laws, be amortized,  prorated,  allocated
and spread in equal parts throughout the full term of the Obligations.  Borrower
and Bank shall,  to the maximum  extent  permitted  under  Applicable  Laws, (a)
characterize any non-principal payment as an expense, fee or premium rather than
as Interest and (b) exclude voluntary  prepayments and the effects thereof.  The
provisions of this Section shall be deemed to be incorporated into the Notes and
each Loan Document  (whether or not any provision of this Section is referred to
therein).

     12.17.  WAIVER OF RIGHT TO TRIAL BY JURY.  As and to the extent  allowed by
Applicable Law, Borrower and Bank hereby waive any right to trial by jury on any
claim,  counterclaim,  setoff, demand, action or cause of action (a) arising out
of or in any way pertaining or relating to this Agreement,  the Notes,  the Loan
Documents, or any other instrument,  document or agreement executed or delivered
in connection with this Agreement or (b) in any way connected with or pertaining
or related to or incidental  to any dealings of the parties  hereto with respect
to this  Agreement,  the Notes,  the Loan  Documents,  or any other  instrument,
document  or  agreement  executed  or  delivered  in  connection  herewith or in
connection with the transactions  related thereto or contemplated thereby or the
exercise  of  either  party's  rights  and  remedies  thereunder,  in all of the
foregoing cases whether now existing or hereafter arising,  and whether sounding
in contract,  tort or otherwise.  Borrower and Bank agree that either or both of
them may file a copy of this paragraph with any court as written evidence of the
knowing,  voluntary and bargained  agreement between the parties  irrevocably to
waive trial by jury, and that any dispute or controversy whatsoever between them
shall instead be tried in a court of competent  jurisdiction  by a judge sitting
without a jury.

                                       46
<PAGE>

     12.18 TIME OF ESSENCE. Time is of the essence of this Agreement.

                       [EXECUTIONS COMMENCE ON NEXT PAGE]

                                       47
<PAGE>

IN WITNESS WHEREOF, each of the Borrower and the Bank has caused this instrument
to be executed  under seal by its duly  authorized  officer as of the date first
above written.

     DEBTOR,  BY EXECUTING THIS AGREEMENT,  HEREBY  EXPRESSLY WAIVES ANY AND ALL
RIGHTS  DEBTOR MAY HAVE TO NOTICE PRIOR TO THE SEIZURE OF THE  COLLATERAL.  THIS
WAIVER IS GIVEN BY DEBTOR TO SECURED PARTY IN ACCORDANCE WITH SECTION  44-14-263
OF THE  OFFICIAL  CODE OF GEORGIA IN ORDER TO  ELIMINATE  THE  REQUIREMENT  THAT
SECURED  PARTY  FURNISH A BOND SHOULD  SECURED  PARTY SEEK AN IMMEDIATE  WRIT OF
POSSESSION.

                                    BORROWER:

                                    COLOR IMAGING, INC., a Delaware corporation

                                    By:   /S/ SUELING WANG
                                       -----------------------------------------
                                          Dr. Sue-Ling Wang, President

                                    Attest:  /S/ MORRIS VAN ASPEREN
                                           -------------------------------------
                                             Morris E. Van Asperen
                                    Its:     Executive Vice President

                                    [CORPORATE SEAL]

                                    BANK:

                                    WACHOVIA BANK, NATIONAL
                                     ASSOCIATION

                                    By:  /S/ JON R. HAUESMAN
                                       -----------------------------------------
                                             Jon R. Hauseman
                                    Its:     Vice President

                                    [BANK SEAL]

                                       48
<PAGE>

                                   EXHIBIT "A"
                                 BOND EQUIPMENT

                               SEE FOLLOWING PAGES

                                       49
<PAGE>

                                   EXHIBIT "B"
                             COMPLIANCE CERTIFICATE

                               SEE FOLLOWING PAGES

                                       B-1

<PAGE>

                         COVENANT COMPLIANCE CERTIFICATE

This certificate is submitted  pursuant to that Second Amended and Restated Loan
and Security Agreement (the "Loan Agreement") dated  ___________,  2005, between
Color Imaging, Inc. as Borrower and Wachovia Bank, National Association ("Bank")
as Lender.  When terms that are defined in the Loan  Agreement  are used herein,
they shall have the same meanings as assigned to them in the Loan Agreement.

The   information   set   forth   herein   is  as  of  the   ___________day   of
____________________________20__.

We hereby certify that the following covenants are calculated in accordance with
the Loan  Agreement and that they are in  compliance  with the terms of the Loan
Agreement.  There currently  exists no default under the covenants nor any other
Event  of  Default.  These  covenants  are  calculated  based  on the  financial
statement(s)  dated______________________,.20__,  copies of which  are  enclosed
with this certificate.

<TABLE>
<CAPTION>
<S>  <C>                                                        <C>             <C>
A.   FIXED CHARGE COVERAGE RATIO

           Net Income                                           0.00
           Plus:   Depreciation                                 0.00
                   Amortization                                 0.00
                   Interest Expense                             0.00
                   Operating Lease Expense                      0.00
                   Income Tax Expense                           0.00

A.   1.   Sub-Total                                                             0.00

           Current Maturities of Long-Term Debt                 0.00
           Plus:   Interest Expense                             0.00
                   Income Tax Expense                           0.00
                   Operating Lease Expense                      0.00

A.   2.   Sub-Total                                                             0.00

A.   3.   Total of A. 1. divided by A.2.                                        0.00

COVENANT LEVEL NOT LESS THAN 1.25 TO 1.00.           COMPLIANCE:             Y/N

B.   TRADITIONAL LEVERAGE; TANGIBLE NET WORTH

B.   1.   Total Liabilities                                     0.00
          Less:   Subordinated Debt                            (0.00)
          Net Liabilities                                       0.00

                                       B-2
<PAGE>

B.   2.   Net Worth                                             0.00
          Plus:   Subordinated Debt
          Less:   Intangible Assets                            (0.00)
                  Amounts Due from Officers                     0.00
                  Shareholders, Affiliates                     (0.00)
          Tangible Net Worth                                                    0.00

B.   3.   B.1. divided by B.2.                                                  0.00

TRADITIONAL LEVERAGE NOT GREATER THAN 2.0 TO 1.00    COMPLIANCE:             Y/N

TANGIBLE NET WORTH NOT LESS THAN $9,000,000          COMPLIANCE:             Y/N
</TABLE>

Color Imaging, Inc. is Solvent as of the date hereof.

Color  Imaging,  Inc.  hereby  certifies the above to be true and correct to the
best of its knowledge.

COLOR IMAGING, INC.

By:____________________________________
Its:____________________________________

                                      B-3
<PAGE>

                                   EXHIBIT "C"

                                BORROWER'S REPORT

                               SEE FOLLOWING PAGES

<PAGE>

                       WACHOVIA BANK, NATIONAL ASSOCIATION
                           COLLATERAL LOAN BANK REPORT

COMPANY: Color Imaging, Inc.

Report Date: __________________________

This certifies that the information herein is true and correct and in compliance
with the Second  Amended and Restated  Loan and Security  Agreement  between the
Company and Wachovia Bank,  National  Association  ("Bank") dated  ____________,
2005. This form is subject to change.

SECTION 1: ACCOUNTS RECEIVABLE AVAILABILITY

<TABLE>
<CAPTION>
<S>     <C>                                                                               <C>                   <C>
1.      Accounts Receivables forward (from line 4 prior  Collateral
        Loan Bank Report)
2.      Additions to A/R
        a.   Invoices/Billings, Opening balance                                            0.00
        b.   Return items debited to A/R                                                   0.00
        c.   Other  Increases to A/R (non-A/R     deposits, etc.)                          0.00
        d.   Subtotal                                                                                            0.00

3.      Deductions from A/R
        a.   Applied collections (from _____ to ________)
        b.   Discounts, returns, allowances, adjustments
        c.   Credit memos
        d.   Other - Progress Billings
        e.   Subtotal                                                                                            0.00

4.      Total Ending A/R (line 1 plus line 2d less line 3e)                                                      0.00

5.      Ineligible A/R
        a.   60 past due date on N30 invoices
        b.   30 days or more past due date on datings
        c.   50% Rule
        d.   25% Concentration
        e.   Contra accounts
        f.   Related party accounts
        g.   Credit balances
        h.   Cash/COD
        i.   Other (foreign A/R not backed by L/Cs or credit
             insured.)
        j.   Total Ineligibles                                                                                   0.00

6.      Eligible Receivables (Line 4 less line 5j)                                                               0.00
</TABLE>

<PAGE>

<TABLE>
<CAPTION>
<S>     <C>                                                                               <C>                   <C>
7.      A/R Availability (Line 6 x 75%)                                                                          0.00

 SECTION 2: INVENTORY AVAILABILITY

8.       Gross Inventory (including inventory in transit)
         a.    In House
         b.    In Transit
         c.    In Transit - L/C
         d.    Total Inventory (Line 8 a, b, c)                                                                  0.00

9.       Ineligible Inventory
         a.    Obsolete Inventory and used inventory
         b.    Inventory at third party location
         c.    Packaging and shipping supplies
         d.    Work in process/inventory
         e.    Total Ineligible Inventory (Line 9a, b, c, d)                                                     0.00

10.      Eligible Inventory (Line 8d less Line 9e)                                                               0.00

11.      Inventory Availability
         a.    Line 10 x  50%
               Inventory Cap = Lesser of $1,500,000 or 50% of Line
               13 below

12.      Inventory Availability - the lesser of Lines 11 a and 11 b.                                             0.00

SECTION 3: TOTAL AVAILABLE AND EXCESS AVAILABILITY                                                               0.00

13.      Total Availability (Line 7 Plus Line 12)                                                                0.00

14.      a.    Loan balance forward
         b.    Deduct Payments in transit
         c.    Add advances requested
         d.    Add miscellaneous reserves
         e.    Add reserves for L/Cs on inventory in-transit (100%)
         f.    Add reserves for L/Cs on non-inventory in-transit
               (50%)
         g.    Add reserve for Credits and Standby Credits (100%)
         h.    Adjusted line balance

15.      Line Limit                                                               $3,000,000.00
16.      Excess Availability
         (OVERADVANCE)-LINE 13 LESS LINE 14 (h)                                                                  0.00
</TABLE>

<PAGE>

SECTION 4: CERTIFICATION

In  compliance  with the Second  Amended  Loan and  Security  Agreement  between
Borrower and Bank, the Borrower  hereby  certifies that all of said  inventories
are now at the below listed  location(s),  have the dollar  values  listed,  are
valued in accordance with generally accepted accounting  principles at the lower
of cost or market (unless  otherwise  specified),  and are owned by the Borrower
free and clear of all claims or encumbrances,  except for the security  interest
of Bank. The Borrower agrees that said  inventories  will not be removed without
the written  permission  of Bank except for  delivery to buyers in the  ordinary
course of business or other normal business reason.  The Borrower certifies that
all of said  inventories  have been produced in compliance with the requirements
of the Federal Fair Labor Standards Act. The Borrower understands that Bank will
rely upon these  representations  in making or continuing  Loan under the Second
Amended and Restated Loan and Security  Agreement  with the  Borrower,  and that
Bank's security interest attaches to all such inventories  through all stages of
manufacture or production,  and to the finished  products and goods,  and to all
other inventories acquired by the Borrower from time to time in the future.

SECTION 5: LOCATION(S) OF INVENTORY

---------------- --------------------- ------------------ ----------------------
ADDRESS          WAREHOUSE             INVENTORY          THIRD PARTY
                 INVENTORY             IN-TRANSIT         WAREHOUSE
---------------- --------------------- ------------------ ----------------------

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

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

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

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

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

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

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

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

Company Name:     Color Imaging, Inc.
                  BY:
                       --------------------------------------------------------
                  ITS:
                        -------------------------------------------------------
                  DATE:
                         ----------------------------------------------

<PAGE>

                                   EXHIBIT "D"
                                  PENSION PLANS

1.       The Color Imaging, Inc. 2003 Stock Incentive Plan

2.       The Color Imaging, Inc 401(k) Plan

                                                         D

<PAGE>

                                   "EXHIBIT E"

             COLLATERAL LOCATIONS EXHIBIT AND OWNERSHIP INFORMATION

         Location                                Name and Address of Landlord

4350 Peachtree Industrial Avenue                 Kings Brothers, LLC
Suite 100
Norcross, Georgia  30071

Office equipment and inventory are also located at 6960 Aragon Circle,  Suite 1,
Buena Park,  CA 90620 but are not and shall not be included  in  Aggregate  Loan
Values.

                                       E
<PAGE>

                                   EXHIBIT "F"
                          INTELLECTUAL PROPEORTY RIGHTS

                                      NONE

                                        F

<PAGE>

                                   EXHIBIT "G"
                                      LIENS

                                      NONE

                                        G

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