CONSTRUCTION LOAN AGREEMENT

THIS AGREEMENT is made effective as of July I0 , 1997 and is entered into by
and among CONCEPTS DIRECT, INC., a Delaware corporation ("Borrower"), and
BANK ONE, COLORADO, NA (the "Bank").

RECITALS

This Agreement is entered into upon the basis of the following facts and
circumstances:

A. The Borrower owns the real property located in the County of Weld, State
of Colorado consisting of approximately 139 acres, and described in Exhibit
A attached hereto and made a part hereof (the "Land").  The Improvements
(defined below), the Land, together with all appurtenances thereto, and all
other real and personal property incorporated or to be incorporated into the
Improvements (excluding personal property owned by a tenant, if any) or
otherwise a part of the collateral for the Loan, defined below, are referred
to collectively as the "Property".

B.  Borrower proposes to construct upon the Property certain improvements in
accordance with plans and specifications to be prepared ,)y Borrower, which
are subject to approval by the Bank.  The Improvements generally consist of
one 1 17,900 square foot building to be occupied by Borrower and not less
than 398 parking spaces.

C.  Borrower has applied to the Bank for a loan to finance construction of
the Improvements on the Property in an amount not to exceed Four Million
Four Hundred Eighty Thousand and 00/100 Dollars ($4,480,000.00) for payment
of the individual costs itemized on the Approved Budget attached hereto as
Exhibit B and made a part hereof.  The Approved Budget is subject to change
upon reasonable approval by the Bank.  The loan shall be evidenced by the
Loan Documents (defined below).

D.  The Bank is willing to make the Loan to Borrower for the purposes set
forth above, all upon the terms and conditions as set forth in this
Agreement.

NOW, THEREFORE, in consideration of the foregoing Recitals and the covenants
and conditions, representations and warranties contained herein, the parties
hereto agree as follows:

ARTICLE I

DEFINITIONS

The following terms when used in this Agreement shall, except where the
context otherwise requires, have the following meanings (such definitions to
be equally applicable to the singular and the plural forms thereof):

1.1  "Advances" means disbursements under the Loan pursuant to the terms of
this Agreement.

1.2   "Agreement"   means this Agreement as originally executed and as
amended, modified or supplemented from time to time.

1.3  "Appraisal" means a current appraisal of the Property prepared by a
State Certified Appraiser as defined in C.R.S. 12-61-706(3), licensed by
the State of Colorado, engaged by and acceptable to the Bank, which
Appraisal shall determine the market value of the Property both in its
current as-is condition and in its condition as completed and stabilized in
accordance with the Plans.

1.4  "Approvals and Permits" means each and all approvals, authorizations,
bonds, consents, certificates, franchises, licenses, permits, registrations,
qualifications, and other actions and rights granted by or filings with any
Persons necessary, appropriate, or reasonably desirable for the construction
of the Improvements, for occupancy, ownership, and use by Borrower and other
Persons of the Improvements, or for the conduct of the business and
operations of Borrower.

1.5  "Approved Budget" means the overall approved budget for the

Improvements which shall include the Interest Reserve for the Loan, the hard
and soft costs for development of the Improvements, and a contingency amount
for unbudgeted costs, as the same may be amended and approved from time to
time.

1.6  "Architect" means the architect for the Plans.

1.7  "Authorized Officer" means any officer of the Borrower, or any other
authorized agent of Borrower certified in writing by Borrower to the Bank
for the purpose of making certifications required by this Loan Agreement.

1.8  "Building" means the building to be constructed on the Land.

1.9   "Business Day" shall mean every day except a Saturday, Sunday or
public holiday on which banks are required or authorized to close in Denver,
Colorado.

1.10  "Closing Date" means the day agreed upon between the Bank and the
Borrower for closing of the Loan; provided, however, that all of the
conditions precedent specified in this Agreement to closing shall have been
satisfied.

1.11   "Construction Contract" means that certain construction contract
dated May 1, 1997, between Borrower and Saunders Construction, Inc., and any
amendments thereto.

1.12 "Construction Funds" means any and all Loan proceeds disbursed in
accordance with the Note and this Agreement.

1.13  "Construction Loan" means the $4,480,000.00 loan made by the Bank to
the Borrower to finance the development and construction of the Project and
payment of the individual costs itemized on the Approved Budget.

1.14  "Construction Loan Deficiency "means a condition or event, as
determined by the Bank in its reasonable discretion, in which or as a result
of which either (i) the total undisbursed balance of the Loan, together with
cash deposits of Owner's Equity, is insufficient to pay the remaining hard
costs and soft costs that will be incurred in connection with the
construction of the Improvements, or (ii) after giving effect to any
reallocation of loan budget categories that the Bank permits pursuant to
Section 8.5 below, and after giving effect to any disbursement from
Contingency Amounts which the Bank permits pursuant to Section 8.5 below,
the undisbursed balance of any category of the Approved Budget is
insufficient to pay the remaining such hard costs or soft costs that are to
be paid from such category of the Approved Budget.

1.15  "Construction Note" means the Promissory Note Secured By First Real
Estate Lien of even date herewith in the stated principal amount of
$4,480,000.00, made by the Borrower to the order of the Bank.

1.16  "Contingency Amounts" means hard and soft costs which maybe approved
by the Bank for disbursement for the development of the Project, and which
either (i) exceed amounts budgeted for line items included in the Approved
Budget, at a time when the Bank has advanced the full amount of Construction
Loan proceeds which have been approved for payment of such line items, or
(ii) are not included in the Project costs identified in the Approved Budget
at a time when no Construction Loan proceeds are available for payment of
such costs.

1.17  "Contractor" means Saunders Construction, Inc.

1. 18 "Default" means any event which if continued uncured would, with
notice or lapse of time or both, constitute an Event of Default.

1. 19 "Event of Default" means any Event of Default described in Section 9.
1.

1.20  "GAAP" means generally accepted accounting principles consistently
applied and maintained throughout the period indicated'.  Whenever any
accounting term is used herein which is not otherwise defined, it shall be
interpreted in accordance with GAAP.

1.21  "Governmental Entity" means any governmental or quasi-governmental
entity, agency, authority, board, commission, or governing body authorized
by federal, state or local laws or regulations as having jurisdiction over
the Borrower, any Guarantor, or Property or the development thereof.

1.22  "Improvements" means any and all infrastructure necessary for the
construction of the Building, including without limitation, systems for
water, sewer, storm sewer, electrical, lighting, telephone, cable, streets,
curb gutter, partial sidewalks and those public improvements required to be
completed as a condition to issuance of a building permit or certificate of
occupancy for the Building, together with the Building, and other
improvements on the Property, more particularly described in the Plans.

1.23  "Lien or Encumbrance" and "Liens and Encumbrances" mean, respectively,
each and all of the following: (i) any lease or other right to use; (ii) any
assignment as security, conditional sale, grant in trust, lien, mortgage,
pledge, security interest, title retention arrangement, other encumbrance,
or other interest or right securing the payment of money or the performance
of any other liability or obligation, whether voluntarily or involuntarily
created and whether arising by agreement, document, or instrument, under any
law, ordinance, regulation, or rule (federal, state, or local), or
otherwise; and (iii) any option, right of first refusal, or other interest
or right affecting the Land or Improvements.

1.24  "Loan" shall mean the Construction Loan.

1.25  "Loan Documents" shall mean any and all documents evidencing and
securing the Loan and shall include the Note, this Agreement, the Deed of
Trust, Financing Statements, Environmental Indemnity Agreement, collateral
assignments of the Construction Contract, Architect's Contract,
Subcontracts, Development Items, and any documents or instruments executed
or delivered at Closing or thereafter to further evidence or secure the
Loan.

1.26 "Loan Party" means Borrower, and each other Person that from time to
time is or becomes obligated to Bank under any Loan Document.

1.27  "Material Adverse Occurrence" shall mean any change in the assets,
business, financial condition, operations, prospects, or results of
operations of any Loan Party or the Property or any other event or condition
that in the reasonable opinion of Bank (i) could materially affect the
likelihood of performance by any Loan Party of any of the Obligations, (ii)
could materially affect the ability of any Loan Party to perform any of the
Obligations, (iii) could affect the legality, validity, or binding nature of
any of the Obligations or any Lien or Encumbrance securing any of the
Obligations, (iv) could materially impair the economic value of the
Property, or (iv) could affect the priority of any Lien or Encumbrance
securing any of the Obligations.

1.28 "Maturity Date" means the earlier of (i) April It, 1998, or (ii) the
date of which the Note is accelerated and declared due as a result of an
Event of Default.

1.29  "Maximum Allowed Construction Loan Advances" means the least of (i)
the sum of $4,480,000.00; (ii) eighty percent (80%) of the completed and
stabilized value of the Property as evidenced in the Appraisal and approved
by the Bank; or (iii) sixty percent (60%) of the total costs of the Project
as shown in the Approved Budget.

1.30  "Note" shall mean the Construction Note.

1.31   "Obligations" shall mean the obligations of the Borrower in
connection with the Loan as evidenced by the Note, this Agreement, and the
Loan Documents.

1.32 "Official Records" shall mean the records of the Clerk and Recorder of
the County in which the Property is located.

1.33  "Permanent Lender" shall mean Bank One Corporate Group.

1.34  "Permanent Loan" shall mean the loan to be made by the Permanent
Lender for permanent financing for the Project.

1.35 "Permanent Commitment" shall mean the loan Application/Commitment dated
April 18, 1997, issued by the Permanent Under with regard to the Permanent
Loan.

1.36 "Person" shall mean any natural person, corporation, firm, association,
government, governmental agency or any other entity, whether acting in an
individual, fiduciary or other capacity.

1.37  "Plans" shall mean the plans and specifications for construction of
the Improvements, all recreational features, and all parking spaces, and all
common improvements to be completed on the Property, prepared by the
Architect, certified by Borrower to Bank, and approved by Bank in its
absolute and sole discretion, together with any amendments or modifications
thereof consented to by Bank in its absolute and sole discretion.

1.38  "Prime Rate" shall mean the rate of interest announced by Bank One,
Colorado, NA, a national banking association, from time to time, as its
Prime Rate.  The Bank may lend to its customers at rates which are at, above
or below the Prime Rate.

1.39 "Project" shall mean the Land and the Improvements.

1.40 "Special District" means Special Districts established pursuant to
Title 32, as amended, of Colorado Revised Statutes, General Improvement
Districts established pursuant to Section 31-25-601 et set., Colo.  Rev.
Stat., as amended, Special Improvement Districts established pursuant to
Section 31-25-501, et set., Colo.  Rev.  Stat., as amended, Local
Improvement Districts established pursuant to C.R.S. Section 30-20-601 et
set., Colo.  Rev.  Stat., as amended, Public Improvement Districts
established pursuant to C.R.S. Section 30-20-501, et set., Colo.  Rev.
Stat., as amended, or any other type of district created pursuant to Titles
29, 30, 31, and 32, as amended, of Colorado Revised Statutes, or any similar
governmental or quasi-governmental entities.

1.41   "Subcontract" shall mean any subcontract or purchase order entered
into by Borrower or Contractor for the supply of labor, services or
materials to the Project.

1.42   "Subcontractor" shall mean any party furnishing labor, services or
materials to the Project under a Subcontract.

1.43    "Utilities" shall mean water, sewer, gas, telephone, cable
television and electrical services.

Other terms defined herein shall have the meaning ascribed to them herein.

ARTICLE II

THE LOAN

2.1  The Construction Loan.  In reliance upon the representations and
warranties of the Borrower, and subject to the terms and conditions of this
Agreement and the Loan Documents, Bank agrees to loan to the Borrower a sum
of money not to exceed Four Million Four Hundred Eighty Thousand and 00/100
Dollars ($4,480,000.00), or such lesser amount as may be provided by other
loan limitations set forth in this Agreement, for the purposes set forth
herein, to be advanced and disbursed by the Bank in accordance with this
Agreement.

(a)  Type of Loan: The Construction Loan is to provide construction
financing only and the Construction Note evidencing the Obligations is to be
satisfied and the Construction Loan retired on or before the Maturity Date.
The Construction Loan is a non-revolving multiple-advance construction loan
to finance the development and construction of the Project.  Amounts
advanced under the Construction Loan may not be reborrowed after being
repaid.

(b)  Interest and Payment.  The Construction Loan shall bear interest at a
rate equal to the Bank's Prime Rate plus one percent (1 %) per annum, to be
adjusted on a daily basis as and when such rate changes, from the date of
disbursement until maturity or the occurrence of an Event of Default, in
which event all Obligations shall bear interest at the Default Rate defined
in the Construction Note.  Interest shall be payable monthly in arrears and
shall be calculated on the actual days outstanding over a 360-day year.

(c)  Limitation on Advances.  Bank shall not be obligated to make any
Advance of the Construction Loan, if at any time or from time to time, the
Bank, in its sole and absolute judgment determines that the total of the
outstanding Advances of the Construction Loan plus the unadvanced balance of
the Construction Loan exceeds the Maximum Allowed Construction Loan
Advances.  Within ten (10) days following notice from the Bank that such an
excess exists, the Loan Parties shall provide additional Owner's Equity in
an amount necessary to bring the Construction Loan into compliance with the
foregoing limit.

2.2  Term.  The Construction Loan shall have a term which commences as of
the date hereof, and expires on the Maturity Date, at which time the
outstanding principal balance of the Loan, together with accrued and unpaid
interest thereon shall be due and payable in full.

2.3  Loan Fee.  Borrower shall upon the execution of this Agreement pay to
the Bank a loan fee of $44,800.00, representing one percent (1 %) of the
initial stated principal amount of the Note, which fee shall be fully earned
and non-refundable upon payment.

2.4  Interest Reserve.  The Approved Budget will contain an amount
sufficient to meet anticipated interest requirements under the Loan prior to
the Maturity Date, as estimated by the Bank, which shall be set aside by
Bank as an interest reserve ("Interest Reserve") from which Bank may
disburse funds as necessary to satisfy Borrower's interest obligations under
the Loan.  Borrower shall be responsible for any shortfall between the
monthly interest payment due on the Loan and the amount available for
payment of interest from the Interest Reserve after the total Interest
Reserve is exhausted as further provided in Section 8.2. No amounts shall be
drawn from the Interest Reserve in excess of Bank's estimate of interest to
become due on the Construction Loan prior to the Maturity Date.

2.5  Loan Documentation and Security.  The Obligations of the Borrower to
the Bank in connection with the Loan are evidenced by the Note and by this
Agreement.  In addition, the Obligations shall at all times be evidenced and
secured by the liens, security interests, and covenants created by the
following documents:

(a)  a valid first lien deed of trust, security agreement, financing
statement and assignment of rents and revenues (the "Deed of Trust") upon
the fee simple interest in the Property, the Improvements, and any easements
and appurtenances which are or may be established to allow satisfactory
ingress, egress, parking and operation of the Improvements; together with a
first lien security interest in all construction materials, equipment,
furniture, furnishings, fixtures and other personal property, tangible and
intangible, contained or to be contained within or incorporated into the
Improvements or used exclusively in connection with the Property (excluding
personal property owned by any tenant under a lease) now owned or hereafter
acquired by the Borrower (the "Personalty"); and an assignment of all
leases, rents and revenues in connection with the Property;

(b)   UCC- 1 financing statement(s) required to perfect Bank's security
interest in the Personalty (the "Financing Statements");

(c)   a collateral assignment of the Construction Contract bearing the
consent of the Contractor;

(d)  a collateral assignment of architect's contract (the "Architect's
Contract") dated September 4, 1996, by and between Borrower and Intergroup,
Inc. (the "Architect"), bearing the consent of the Architect;

(e)  a collateral assignment of each Subcontract for services or materials,
fixtures, equipment or appliances provided to the Improvements, with the
consent of the Subcontractor, as required by the Bank.

(f)     a collateral assignment of the Development Items, defined below.

(g)   an environmental indemnity agreement ("Environmental Indemnity ")
executed by Borrower;

(h)  an assignment of all of Borrower's rights to reimbursement from the
City of Longmont pursuant to the Memorandum of Public Improvements Agreement
dated March 25, 1997.

All documentation evidencing the foregoing shall be in form and substance
satisfactory to Bank and shall include consents from such third parties as
Bank deems necessary or appropriate.

2.6  Cross-Default and Cross-Collateral.  The Borrower and the Bank have
entered into a loan transaction (the "Development Loan") regarding the
construction of infrastructure improvements on real property adjacent to the
Property pursuant to which the Borrower has executed and delivered to Bank a
Development Loan Agreement of even date herewith, (the "Development Loan
Agreement") and other documents and instruments in connection with the
Development Loan as described in the Development Loan Agreement (the
"Development Loan Documents").  The Development Loan Documents provide that
the Obligations under the Development Loan are additionally secured by the
Loan Documents encumbering the Property and that any default under the
Development Loan Documents shall be a default under the Loan Documents.
Further, repayment of the Loan is additionally secured by the Development
Loan Documents and any default under the Loan Documents shall be deemed a
default under the Development Loan Documents. At such time as the
Development Loan is paid in full, the Borrower and Bank will either execute
a modification of the Loan to extinguish the cross-default and
cross-collateral provisions with respect to the Development Loan or the Bank
will mark the Development Note "paid in full and cancelled, " but will
retain the original thereof in order to effect a release of the Deed of
Trust when the Note is paid in full.

ARTICLE III

CONDITIONS PRECEDENT TO CLOSING

The Bank's obligation to make the Loan and to enter into and perform its
agreements under this Agreement shall be subject to the full and complete
satisfaction of the following conditions precedent to any advance of
Construction Funds or Owner's Equity, at the time of closing of the Loan
("Closing") and subsequently:

3.1 Documents.  The Bank shall have received and approved fully executed
copies of the Loan Documents which shall have been duly authorized, executed
(and, where appropriate, acknowledged), and delivered by the parties thereto
and any and all other documents as Bank may deem reasonably necessary with
respect to the Loan;

3.2      Review Items.   The Bank shall have received and approved the
following:

(a)  Acquisition Documents.  A copy of the conveyance deed by which Borrower
acquired the Property and a copy of the fully-executed closing settlement
sheets for the purchase of the Property;

(b)  Current Financial Statements.  Personally certified current financial
statements of Borrower, less than 180 days old; copy of the extension forms
for 1996 federal tax returns for Borrower including all schedules and
exhibits, and a summary of 1997 cash flow.

(c)  Pre-closing Expenses.  Evidence satisfactory to the Bank and the Title
Company that all pre-closing development costs on the Project have been paid
in a timely fashion or will be paid at closing, which evidence shall include
without limitation lien waivers, paid invoices, governmental inspections and
approvals, as applicable;

(d)   Plans.  Two (2) complete sets of final Plans which have also been
approved by all Governmental Entities having jurisdiction therefor;

(e)    Construction Contract.  A copy of the Construction Contract, which
shall provide that the Contractor has agreed to construct the Improvements
for the guaranteed maximum price of $6,351,416.00. No terms, conditions or
provisions in the Construction Contract shall be waived, modified or amended
without the Bank's prior written approval which approval shall not be
unreasonably withheld or delayed;

(f)  Architect's Contract.  A copy of the Architect's Contract, no terms,
conditions or provisions of which shall be waived, modified or amended
without the Bank's prior written approval which approval shall not be
unreasonably withheld or delayed;

(g)  Subcontracts.  Copies of all Subcontracts from all material suppliers,
and subcontractors who will be providing materials or labor for construction
of the Improvements.

(h)  Subcontract List.  A list of all Subcontractors, with name of contact
person, telephone number and address, required to be updated when new
Subcontracts are made, a general statement of the nature of the work to be
done or materials supplied and the dollar value of the work to be done,
certified by the Borrower;

(I)  Soils Report.  An engineer's report prepared and certified by a
qualified engineer acceptable to Bank, showing locations and results of all
borings, together with recommendations for the design of the foundations of
the Buildings and certifying in a manner reasonably satisfactory to Bank the
adequacy of the existing soils condition, indicating that the Plans for
construction of the Improvements are satisfactory in view of the condition
of the soil;

0)  Architect's Certificate.  A certificate from the Architect certifying
that the Improvements including parking requirements, as shown on the Plans,
are designed to be in compliance with all applicable governmental
requirements; and

(k)  Development Items.  Copies of all engineering reports, land planning
maps, or plats, soils tests, environmental reports, surveys prepared for the
orderly planning of the Improvements, marketing materials and brochures,
building permits or licenses, utility taps or supply agreements,
governmental or private agreements, indemnities, waivers, rights to
reimbursements, abatements or benefits of whatsoever nature regarding the
Property, to the extent assignable, and other documents prepared and
existing for the development of the Project available at Closing, with
subsequent submissions to the Bank of reports and studies not required to be
available at Closing, if requested by Bank (collectively called "Development
Items");

(1)  Development Documents.  Receipt of copies of any agreements, existing
or proposed, with Governmental Entities, in the nature of a subdivider's
agreement, public improvements agreement, or annexation agreement affecting
the development of the Project or requiring cash equivalent collateral, or
imposing building restrictions in lieu of collateral, as a condition to
development of the Project (collectively, the "Development Documents");

(m)  Budget.  Approved Budget attached hereto as Exhibit B, which shall be
based upon executed Subcontracts or firm bids satisfactory to the Bank and
its Project Inspector;

(n)  Appraisal.  The Appraisal;

(o)  Environmental Audits.  The Phase I Environmental Audit prepared by an
environmental engineering company approved by the Bank and in substance
satisfactory to Bank regarding the Property;

(p)  Environmental Reports.  Copies of any environmental impact statements,
Material Safety Data Sheets filed or to be filed with OSHA, the State of
Colorado or any local emergency planning commission or the local fire
department ("Environmental Reports"), if any;

(q)    Utilities.  Receipt of evidence satisfactory to Bank of the
availability to the Property boundaries of all Utilities;

(r )  Plats.  Three copies of any existing recorded plat, showing all
easements, ditches, streets, lot lines and proposed location for all
Improvements on the Property and evidence satisfactory to the Bank that the
transfer of ownership of the Property as a consequence of foreclosure or
deed in lieu of foreclosure will not result in a violation of subdivision
laws.

(s)  Zoning/PUDS/PDP.  Evidence of zoning, preliminary development plan
("PDP") or other development plan for the Property permitting the
construction of the Project, and containing all use or building conditions
or restrictions affecting the Project and approved by the appropriate
Governmental Entity;

(t)  Opinions.  Legal opinions of counsel for the Borrower ("Legal
Opinion"), in form and substance reasonably satisfactory to the Bank,
opining that the Borrower is duly organized and in good standing under the
laws of the State of Delaware and the State of Colorado, and has the power
to enter into and perform its obligations under the Loan, that the Loan is
not usurious under any applicable law, that the loan transaction and the
execution and delivery of the Loan Documents have been duly authorized by
all necessary parties, and that the Loan Documents are legal, valid and
binding and enforceable in accordance with their terms, subject to customary
exceptions;

(u)    Tax Certificate.  A Tax Certificate (defined below);

(v)  Special Districts.  Identification of any special district affecting
the Property, together with a boundary map of the special district,
financial statements and outline of the debt structure, if requested by the
Bank;

(w)  Deposits.  Any deposit of money, which may be required pursuant to this
Agreement or the Loan Documents, including, without limitation, the Owner's
Equity (defined below) and/or satisfactory evidence of the contribution of
Owner's Equity to the Project.

(x)  Permanent Loan Commitment.  Evidence satisfactory to the Bank of the
Permanent Loan Commitment of the Permanent Lender, containing terms and
conditions satisfactory to the Bank.

(y)  Corporation, Limited Liability Company, or Partnership Documents.  If
any Loan Party is a corporation, a limited liability company, or a
partnership, certified copies of (i) resolutions of its board of directors
or, if all managers or all general partners do not sign the Loan Documents,
resolutions of the managers of the limited liability company or partners of
the partnership, as the case may be, authorizing such Loan Party to execute,
deliver, and perform its Loan Documents and to grant to Bank the Liens and
Encumbrances on the Property in the Loan Documents and certifying the names
and signatures of the officer(s), member(s), manager(s), or partner(s), as
the case may be, of such Loan Party authorized to execute the Loan Documents
and, in the case of Borrower, to request Advances on behalf of Borrower,
(ii) the certificate of incorporation and bylaws, limited liability company
operating agreement, or partnership agreement, as the case may be, of such
Loan Party and all amendments thereto, (iii) if any Loan Party is a general
partnership or joint venture, the filed or recorded fictitious name
certificate for such Loan Party and all amendments thereto, (iv) if any Loan
Party is a limited partnership, the filed or recorded certificate of limited
partnership of such Loan Party and all amendments thereto, and (v) a
certificate of good standing as a corporation, limited liability company, or
limited partnership, as the case may be, from the jurisdiction of formation
or organization of such Loan Party, and if such jurisdiction is not the
State of Colorado, a certificate of qualification as a foreign corporation,
limited liability company, or limited partnership, as the case may be,
authorized to transact business in the State of Colorado.

3.3  Taxes.  All taxes, fees and other charges in connection with the
execution, delivery and recording of the Loan Documents shall have been
paid, and all delinquent taxes, assessments or other governmental charges or
liens affecting the Property, if any, shall have been paid.  Borrower shall
provide a treasurer's tax certificate ("Tax Certificate") disclosing that no
general and special taxes or assessments encumbering the Property are
delinquent and that the Property does not lie within any special or general
assessment district except as approved by the Bank.

3.4  Title and Other Matters.  Title to the Property, the legal description
of the Property, and all documents and other matters relating in any way to
the Loan or to the Property must be to the satisfaction of Bank.  At
Borrower's expense, Borrower shall furnish Bank with a 1992 ALTA loan policy
(the "Title Policy"), in the face amount of the Loan, insuring the Deed of
Trust as a valid first lien on the Property, together with all endorsements
as Bank may reasonably require, including without limitation, deletion of
standard exceptions I through 3, containing no exceptions other than those
Bank approves, issued in substance and in form by a company or companies
acceptable to Bank.  The Title Policy shall contain "pending disbursements"
provisions satisfactory to the Bank, and, as Bank may reasonably require,
reinsurance with companies and in amounts reasonably acceptable to the Bank,
as well as direct access agreements with such reinsurers The Bank hereby
reserves the right to require the mechanic lien endorsement 101 (mechanic
lien disbursement endorsement), the cost of which shall be borne by the
Borrower.

3.5  Zoning, Permits, Approvals.  Borrower shall provide to Bank
satisfactory evidence that Borrower has complied with all covenants,
conditions, restrictions and reservations affecting the Property, including
the Covenants, that the Property is duly and validly zoned for the intended
use, and that Borrower has obtained all zoning, subdivision, and
environmental approvals, permits and maps required to be obtained in order
to construct the Improvements ("Zoning Confirmation") and that the Property
meets all applicable requirements of the subdivision zoning regulations and
any local ordinances adopted pursuant thereto.  Bank shall further require
proof that all permits, consents and approvals required pursuant to Section
3.6 hereof have been obtained, and any condition to such approvals must be
acceptable to Bank.

3.6  Insurance.  In addition to the insurance policies required in Section 4
of the Deed of Trust which shall be provided at Closing, Borrower shall
maintain and deposit with the Bank or cause the Contractor to maintain and
deposit with the Bank original certificates of insurance policies issued by
insurance companies with current Best's Key Ratings of not less than A/V and
written in form and content acceptable to Bank, with appropriate mortgagee
clauses in favor of Bank, providing the following minimum insurance
coverages:

(a)  Comprehensive general public liability insurance in amounts not less
than $1,000,000.00 (combined single limit for bodily injury and property
damage), and an umbrella excess liability coverage in an amount not less
than $5,000,000.00 shall be in effect with respect to Borrower, the
contractors, architect and any engineer, with the Bank named as an
additional insured.  In addition, Borrower shall maintain in full force and
effect business auto liability insurance, including any non-owned and hired
automobiles Such policies must be written on an occurrence basis so as to
provide blanket contractual liability, broad form property damage coverage,
and coverage for products and completed operations;

(b)  All-risk course of construction insurance with standard
non-contributing mortgage clause, a lender's Loss Payable Endorsement naming
the Bank and/or assigns as loss payee, providing for a deductible not in
excess of $5,000, attached together with a full replacement cost endorsement
(provided that in no event, however, may the amount of coverage to be
maintained by Borrower be less than the amount of coverage necessary to
prevent Borrower's co-insurance of loss) ("Builder's Risk Insurance");

 (c)    Engineer's professional liability insurance in an amount
 satisfactory to the Bank, with the Bank named as an additional insured, if
 required by the Bank;

(d)    Architect's design liability insurance in an amount satisfactory to
the Bank, with the Bank named as an additional insured, if required by the
Bank;

(e)    Worker's Compensation Insurance covering all persons engaged in the
construction of the Improvements;

Each of the foregoing policies (except 3.6(e)) shall contain a clause
requiring thirty (30) day notice to Bank of cancellation, termination or
material modification.  Borrower shall provide proof of premiums paid and,
throughout the term of the Loan, shall provide evidence to Bank no later
than thirty (30) days prior to expiration of each annual policy of payment
of renewal premiums and continuation of insurance coverage.

3.7 Survey.  Borrower shall have furnished to Bank, at Borrower's expense, a
 current improvement survey plat  ("Survey") of the Property acceptable to
 Bank and the title insurance company issuing the Title Policy (the "Title
 Insurer") indicating, without limitation, that all foundations or other
 Improvements currently constructed, if any, are located within the lot
 lines, without infringement on established easements or rights-of-way and
 not in violation of any ordinance including zoning ordinances which impose
 lot line setback requirements and parking requirements.  The survey shall
 show the legal description of the Property as it will be insured by the
 Title Insurer, the courses and distances of the Property lot lines, all
 appurtenant and servient easements, setbacks, building lines and width of
 abutting streets, distance to nearest intersecting streets affording
 ingress and egress to and from the Property, and the location and
 dimensions of all encroachments, improvements, above or below ground
 easements and utilities, and designated parking spaces.  The survey shall
 show the proposed location of all Improvements to be built on the Property
 as identified by Borrower to the surveyors, with appropriate notation to
 distinguish between constructed Improvements or foundations and proposed
 Improvements.  The surveyor shall also certify whether or not any portion
 of the Improvements is located within a Federal Emergency Management Agency
 identified flood-prone area of a community and if located thereon, state
 the map number and whether or not the Property appears in the "Flood Hazard
 Area," or other known flood plain dimensions affecting the Property.  The
 survey must be certified as accurate by a licensed surveyor in the State of
 Colorado and contain a certificate imprinted thereon in the form approved
 by the American Land Title Association stating that the survey is made for
 the benefit of the Bank and the Title Insurer.  In the event Borrower shall
 have obtained a replat of the Property within sixty (60) days prior to
 Closing, the Bank may elect in its reasonable discretion to accept the
 recorded replat with appropriate certifications and additional notations
 from the surveyor in lieu of the Survey, provided, however, that the
 recorded replat is sufficient to induce the Title Company to delete
 standard exceptions from the Title Policy regarding matters that would be
 shown by an ALTA survey.

3.8 Owner's Equity!y.  Prior to any Advance, Borrower shall provide Bank
with evidence of owner's equity ("Owner's Equity") in the amount of
$2,943,573.00, in the form of cash deposits and/or approved acquisition or
construction cost payments, which shall mean those payments actually made by
Borrower for acquisition of the Property or to third-party contractors or
suppliers for costs described in the Approved Budget, which costs shall be
evidenced by payment receipts (or other proof of payment satisfactory to the
Bank, and executed mechanic lien waivers (for lienable work or materials)
or, in the case of acquisition costs, certified post-closing settlement
sheets.  The Loan is intended solely for the funding of the costs, expenses
and fees described in the Project Budget.  All other costs, expenses, and
fees for development and construction of the Project, shall be contributed
by the Borrower in the form of Owner's Equity.  The amount of Owner's Equity
at Closing and subsequently may increase as a function of the overall
Project Budget, the Appraisal, the requirements of Section 2. l(c) and the
approval by the Bank of any non-cash Owner's Equity.

3.9  Development Obligations.  Evidence reasonably satisfactory to the Bank
that any obligations of Borrower, as developer, regarding development in
connection with the Project arising under the Development Documents or
agreements with providers of Utility Services or governmental regulations
which could become a lien against property located in the Project or a
restriction against the issuance of building permits in the Project or the
certificate of occupancy for the Building (collectively, "Development
Obligations") have been or will be satisfied or performance of the
Development Obligations has been or will be secured by adequate financial
security such as bonds, letters of credit or certificates of deposit
pursuant to the agreements creating the Development Obligations or the
requirements of the utility provider.

3.10  Loan Costs.  Borrower shall provide evidence satisfactory to Bank of
the payment of or availability of funds, in the Approved Budget or
otherwise, for payment of all fees, real property taxes and assessments,
personal property taxes and other taxes, assessments and charges incurred
under the Loan and the construction of the Improvements and in connection
with the negotiation, documentation, analysis or funding of the Loan,
including, but not limited to, the loan fees, agreed herein or by separate
agreement to be paid to the Bank; interest charges; service and inspection
fees; attorneys fees, survey costs, title insurance and endorsement
premiums, if any; environmental audit; appraisal fees; engineering
inspection fees; recording fees required to be paid upon the recording of
any instruments to be made and delivered hereunder and insurance premiums
(the "Loan Costs").

ARTICLE IV

CONDITIONS PRECEDENT TO ADVANCES

4.1     Conditions Precedent to Initial Advance of Construction Funds.  The
Bank's obligation to disburse the initial advance ("Initial Advance") of
Construction Funds pursuant to the terms hereof shall, in addition to the
requirement of compliance with the terms of Article III hereof, be subject
to receipt of the following documents by the Bank in form and substance
reasonably acceptable to the Bank and satisfaction of the following
conditions precedent:

(a) Bank shall have reviewed and approved any requests for changes in the
Plans or in the Construction Documents which changes shall have been
approved by the Bank prior to submission of the Advance Request by Borrower

(b)    Any amendment to the final Approved Budget, approved by the Bank in
accordance with its customary procedures.

(c)  Receipt of evidence satisfactory to Bank that Borrower has complied
with all Covenants affecting the Property, that the Property is duly and
validly zoned for the intended use, and that Borrower has obtained all
zoning, use, subdivision, and environmental approvals, permits and maps
required to be obtained in order to commence construction of the
Improvements.

(d)  Receipt by Bank of any deposit of money or evidence of the contribution
into the Project of any funds which may be required pursuant to this
Agreement or the Loan Documents, including, without limitation, the Owner's
Equity.

(e)    Receipt by Bank of any other documents and assurances as it may
reasonably request to comply with the provisions of this Agreement.

(f)  Receipt and approval by Bank of all building and other permits required
for construction of the applicable stage of the Improvements in accordance
with the Plans, if not otherwise delivered at Closing.

(g) Receipt by Bank of:

(i) a request for advance ("Advance Request"), certified by an Authorized
Officer on behalf of Borrower, together with AIA forms G702 and G703 (and
such other forms as may from time to time be approved or required by
Lender), setting forth such details concerning the nature and amount of work
and materials furnished to the date of such request, including
identification of the parties performing such work and providing such
materials and concerning the use of the requested Advance as Bank may
reasonably require together with invoices or other appropriate documentation
for all expenses to be paid out of the requested Advance, the amounts
expended to the date of the Advance Request for the Improvements, the
amounts then due and unpaid for construction of the Improvements and an
itemized estimate of the amount necessary to complete the Improvements.  Any
materials covered by an Advance Request must be suitably stored at the
construction site, inventoried,and safeguarded and insured against loss,
damage and theft.

(ii) paid invoices and lien waivers relating to all construction through the
date of the previous Advance-Request, if any, if requested by the Bank;

(iii)  full, unconditional lien waivers from all persons or entities for all
labor performed and materials supplied in connection with the construction
of any Improvements for which construction was completed prior to the date
of the previous Advance Request and for which final invoices were paid out
of the previous Advance Request, if any;

(iv) if requested by the Bank, checks drawn on Borrower's construction draw
account at the Bank to the order of Contractor, subcontractors, laborers,
and materialmen identified in the Advance Request;

(v) the certification by Borrower, Borrower's Architect, the Contractor and
at Bank's option an independent architect or engineer of Bank's selection,
that: (a) all work performed is in substantial accordance with the Plans;
(b) all governmental licenses and permits required for the Improvements as
then completed have been obtained and will be exhibited to Bank upon
request; (c) the Improvements as then completed do not violate, and, if
further completed in accordance with the Plans, will not violate, any law,
ordinance, rule or regulation; and (d) the remaining undisbursed proceeds of
the Loan plus the then existing balance of any Owner's Equity held by Bank
are sufficient to pay for the completion of the Improvements;

(vi)  the certification by Borrower that no Event of Default exists, and no
event has occurred and no condition exists that, after notice or lapse of
time, or both, would constitute an Event of Default;

(vii) evidence that any inspection required by any statute, city or other
governmental authority has been completed with results satisfactory to that
authority; and                                           -

(viii) such other information and documents as Bank may reasonably require.

The amount of the Advance Request shall be reduced by Bank to permit the
holdback of ten percent (10%) of the hard costs incurred in connection with
the construction of the Improvements as retainage ("Retainage") until the
Final Advance.  Borrower shall provide two additional copies of the Advance
Request and copies of all supporting invoices and lien waivers to the Bank
for delivery to the Bank's Project Inspector and Bank's disbursing agent, if
applicable.  When an Advance Request includes a disbursement request for
materials that are stored offsite, the Borrower shall provide the Bank with
an identification of the storage site and satisfactory evidence that such
materials are adequately insured.  The Bank shall disburse the Construction
Funds pursuant to an Advance Request only to pay or reimburse Borrower for
costs, expenses and fees (i) actually incurred by Borrower, (ii) directly
connected with the construction of the Improvements and (iii) included in
the Approved Budget.

(h)  Any additional Subcontracts and other Construction Documents not
previously submitted to Bank and an updated Subcontract List must be
submitted to and reasonably approved by Bank and collectively assigned to
the Bank.

(i)  At Bank's request, prior to each Advance subsequent to the Initial
Advance, require receipt of a current ALTA Endorsement No. 107.12 (Downdate
Endorsement) or, if the Bank has required Form 101 coverage, a current ALTA
Endorsement No. 101.2 (Mechanics' Lien Disbursement Endorsement), and such
other endorsements as Bank may, in its discretion, determine are necessary.
All such endorsements must be reasonably satisfactory to Bank and are the
sole cost and expense of Borrower.

4.2  Conditions Precedent to Subsequent Advances of Construction
Funds/Owner's Equity.  In addition to continued compliance with the
conditions precedent set forth in Article III and Section 4.1 hereof, Bank's
obligation to authorize any advance of Construction Funds, or Owner's
Equity, after the Initial Advance shall be subject to the Bank's
satisfaction of the following conditions precedent:

(a)    Bank shall have received an Advance Request, in the form  specified
in Section 4. 1 (g).

(b)  At Bank's request, prior to each disbursement, require receipt of a
current ALTA Endorsement No. 107.12 (Downdate Endorsement) or ALTA
Endorsement No. 101.2 (Mechanics' Lien Disbursement Endorsement) to the
Title Policy and such other endorsements as Bank may, in its discretion,
determine are necessary.  All such endorsements must be reasonably
satisfactory to Bank and are the sole cost and expense of Borrower.

(c)  Neither the improvements, to the extent then constructed, nor the
Property nor any part thereof shall have been materially damaged, destroyed,
condemned or threatened with condemnation, provided, however, that in any of
such events, if Borrower shall have made satisfactory arrangements with Bank
pursuant to the provisions of Section 7.4 hereof, Bank may continue to
authorize Advances hereunder.

(d)  No order or notice shall have been made by, or received from, any
Governmental Entity stating that the work of construction is or will be in
violation of any law, ordinance, code or regulation affecting the Property.

(e)  No lien or notice of intent to file a lien for work or services
performed in or on the Property or Improvements or materials or equipment
delivered thereto, shall have been recorded, filed or delivered to Borrower,
disbursing agent, or the Bank, subject to Borrower's right to contest under
Section 7.4.

 (f)  Any additional Subcontracts, or other Construction Documents relating
 to the Improvements not previously approved by Bank and an updated
 Subcontract List must be submitted to and reasonably approved by Bank.

4.3  Conditions Precedent to Final Advance of Construction Funds/Owner's
Equity.  In addition to continued compliance with the conditions set forth
in Article III and Sections 4. 1 and 4.2 hereof, Bank's obligation to
disburse the final advance of Construction Funds or Owner's Equity for
construction purposes (the "Final Advance") shall be subject to the
satisfaction of the following conditions precedent, each of which Borrower
shall satisfy as promptly as is reasonably possible:

(a)  Completion of construction of the Improvements in accordance with the
Plans as evidenced by a certificate from the Architect certifying that the
Improvements have been completed substantially in accordance with the Plans
and in compliance with the Covenants and all applicable governmental
regulations and a report from the Project Inspector regarding the same
items.

(b)  Receipt by Bank of a final Certificate(s) of Occupancy or inspection
approvals or temporary certificate(s) of occupancy with punchlist items
acceptable to Bank, as applicable, for the Building issued by the
appropriate Governmental Entity.

(c)  At Bank's option, receipt by Bank of the certification on AIA Form G704
by the architect or engineer selected by Bank, if any, that the Improvements
have been fully completed in accordance with the Plans.

(d)  Receipt by Bank of full, unconditional lien waivers from the
Contractor, and at Bank's option, from all subcontractors and all other
persons or entities for all labor performed and/or materials supplied in
connection with the construction of the

Improvements.                              -

(e)    Receipt by Bank of an affidavit of payment of debts and claims
executed by the Contractor;

(f)  Receipt by Bank of written certification on AIA Forms G706, 706A or 707
from the Borrower's Architect that each final punch list item for the
Improvements has been completed.

(g)  Receipt by Bank of copies of all special inspection reports,
certificates or any similar items as required by any political subdivision
relating to the Improvements.

(h)    Receipt by Bank of an ALTA "as built" survey, as required herein.

 (i)  If required by Bank, receipt by Bank of copies of all guaranties for
 workmanship, and all warranties and maintenance agreements relating to the
 completed Improvements.

j)     Receipt by Bank of "as-built" record drawings and specifications that
include all modifications and changes that have been included in the Plans;
and

(k)  Receipt by Bank of a copy of a "Notice of Completion" on Bank's
approved form executed by Borrower which has been properly recorded in the
county recorder's office where the Property is located.

4.4  Conditions Precedent to All Advances.  The obligation of Bank to make
any advance of Construction Funds or Owner's Equity shall be further subject
to the satisfaction of each of the following conditions at the time of each
requested Advance:

(a)  Borrower shall be in full compliance and shall not be in default
hereunder or under any of the Loan Documents, including this Agreement,
provided, however, that Bank may, in its discretion, elect to authorize
Advances notwithstanding the existence of a Default, and any Advance
authorized shall be deemed to have been made pursuant to this Agreement and
shall be secured by the Loan Documents and shall not be deemed a cure of
Borrower's Defaults.

(b)  The representation, warranties, and covenants set forth in Article V of
this Agreement are true and correct on the date of the advance in all
material respect, except that the representations and warranties set forth
in Section 5.2 referring to the financial statements, supporting schedules,
and financial reports, as the case may be, shall be deemed a reference to
such statements, schedules and reports then most recently delivered to the
Bank;

(c)    No Event of -Default and no Material Adverse Occurrence shall then
have occurred and be continuing on the date of the request or the date of
the Advance;

(d)  No litigation, arbitration or governmental investigation or proceeding
shall be pending, or to the knowledge of any Loan Party threatened, against
any Loan Party or affecting the operations of any Loan Party which, if
determined adversely to any Loan Party, would constitute a Material Adverse
Occurrence;

(e)   No Event of Default shall result from the making of the

Advance;

(f)  No written order or written notice shall have been made by, or received
from, any Governmental Entity having jurisdiction stating that the
construction is or will be in violation of any law, ordinance, code or
regulation affecting the Property; and

 (g)  As of the date immediately prior to any Advance, the total amount of
 the unadvanced Construction Funds (not including Retainage for prior work),
 together with any cash deposit of Owner's Equity held by the Bank, if any,
 shall be sufficient, in Bank's reasonable opinion, taking into account the
 Approved Budget, to complete the Improvements and to pay all Loan Costs,
 including interest, through the balance of the term of the Loan to the
 Completion Date.  To the extent the total amount of the unadvanced
 Construction Funds, together with required Owner's Equity, shall be
 insufficient, in the Bank's reasonable opinion, taking into account the
 Approved Budget, to complete the Improvements or to satisfy known interest
 requirements, Borrower shall, within ten (10) days following written notice
 from the Bank, deposit with the Bank an amount equal to such deficiency as
 additional Owner's Equity, and such Owner's Equity shall be retained and
 disbursed by the Bank as required with any future advances under this
 Agreement until the Improvements are completed and all hard costs and soft
 costs incurred in connection with the construction of the Improvements,
 including costs incurred in connection with the Loan, are paid and provided
 that no Event of Default then exists.

(h)  In no event shall the Bank be required to disburse any Loan proceeds
which, in the Bank's good faith judgment, will result in a Construction Loan
Deficiency.  Borrower hereby agrees that if the Bank determines that a
Construction Loan Deficiency exists, Borrower shall, upon five (5) days'
written notice from the Bank, at the Bank's sole option, either (i) deposit
with the Bank the amount that the Bank, in its good faith opinion, deems
reasonably necessary to eliminate such Construction Loan Deficiency, or (ii)
furnish the Bank with paid invoices, bills and receipts indicating that
Borrower has paid, from Borrower's own funds and not from the Loan, costs of
completing the construction of the Improvements in an amount sufficient to
eliminate such Construction Loan Deficiency.  All amounts deposited by
Borrower pursuant hereto shall be disbursed in accordance with the terms of
this Agreement for the payment of the hard costs and soft costs incurred in
connection with the construction of the Improvements prior to any further
disbursement of the Loan.

(i)  If the Bank, in its sole and reasonable judgment, determines that the
total of the outstanding Advances of the Construction Loan plus the
unadvanced balance of the Construction Loan exceeds the Maximum Allowed
Construction Loan Advances, Bank shall not be obligated to make any Advance
of the Construction Loan proceeds.

0)  The Bank shall have received a report from the Project Inspector
verifying that all work relating to the invoices to be paid is complete on
the job site and conformed to the Plans, a copy of which report shall be
given to Borrower at its request.

ARTICLE V REPRESENTATIONS, WARRANTIES AND COVENANTS

In order to induce Bank to make the Loan, each Loan Party, for itself,
represents, warrants and covenants as follows, which representations,
warranties and covenants shall be true and correct as of the execution
hereof and shall survive the execution and delivery of the Loan Documents:

5.1  Organization of Borrower; Authority to Enter into Agreement.  The
Borrower is a corporation, duly formed and validly in existence and in good
standing under the laws of the State of Delaware and qualified to do
business in the State of Colorado.  Borrower is duly qualified to do
business and is in good standing in each jurisdiction where the nature of
its business makes such qualification necessary and where the failure to so
qualify permanently precludes the Borrower from enforcing its contracts.
Borrower has the right and power to purchase, occupy and develop the
Property, and has full power and authority to enter into this Agreement, to
borrow money as contemplated herein and to execute and carry out the
provisions of the Loan Documents.  Each Loan Party has full power and
authority to enter into this Agreement, to borrow money as contemplated
herein and to execute and carry out the provisions of the Loan Documents.
The execution, delivery and performance of the Loan Documents have been duly
authorized by all necessary action of each Loan Party and no other action of
any Loan Party is required for the execution, delivery and performance of
the Loan Documents.  The Loan Documents which have been executed and
delivered pursuant to this Agreement constitute, or, if not yet executed or
delivered, will when so executed and delivered, constitute valid and binding
obligations of each Loan Party, respectively, each enforceable in accordance
with its respective terms.

5.2  Financial Statements.  Any loan applications, financial statements,
supporting schedules, and financial reports heretofore delivered to the Bank
in connection with the Loan Documents by or on behalf of  Borrower are true
and correct in all material respects, and have been prepared in accordance
with GAAP, and fairly represent the respective financial conditions of the
subjects thereof as of the dates thereof and for the periods covered
thereby, and no Material Adverse Occurrence has occurred in the financial
conditions presented therein since the respective dates thereof.

5.3 No Litigation.  There are no actions, suits or proceedings pending, or
to the knowledge of the Borrower threatened against or affecting the
Borrower, or any of the property or assets of the Borrower, in any court at
law or in equity, or before or by any governmental or municipal authority
which might materially adversely affect the ability of the Borrower to
perform its respective obligations hereunder or under any of the Loan
Documents, or might adversely affect the priority of the Bank's liens and
security interests with respect to the Borrower's property or assets, except
as disclosed to Bank in writing prior to the date of this Agreement.

5.4  Marketable Title.  Borrower has good and marketable title to the
Property, free and clear of all Liens and Encumbrances, excepting only the
lien for general taxes for the current year and Permitted Exceptions (as
defined in the Deed of Trust, and subject only to the Covenants, defined
below, and has good and marketable title to all of its property and assets,
real and personal, which secure repayment of the Note.

5.5  Covenants, Zoning and Codes.  Borrower has complied and will continue
to comply with all applicable statutes and regulations to be complied with
in connection with the construction of the Improvements, including, without
limitation and to the extent applicable, all statutes and regulations
regarding environmental issues, the Americans with Disabilities Act, and
historical preservation acts and regulations.  All permits, consents,
approvals or authorizations by, or registrations, declarations, withholding
of objections or filings with any governmental body or private entity
necessary in connection with the valid execution, delivery and performance
of this Agreement, the Loan Documents, and any and all other documents
executed in connection with any of the foregoing, or presently necessary for
the commencement of construction of the Improvements, will be obtained prior
to the commencement of the construction of any part of the Improvements and
will be valid, adequate and in full force and effect.  Construction of the
Improvements and the intended use thereof will in all respects conform to
and comply with all covenants, conditions, restrictions and reservations
affecting the Property, with all applicable zoning, including parking
requirements, subdivision, environmental protection, use and building codes,
laws, regulations and ordinances, with the Internal Revenue Code
(collectively, the "Covenants").

5.6  Compliance with Hazardous Substance Covenants.  Borrower represents,
warrants, and covenants that the Property, and the use, occupancy and
operation of the Property will strictly comply with all covenants and
agreements of Borrower regarding Hazardous Substance as defined and
contained in the Deed of Trust and the Environmental Indemnity Agreement
during the period of Borrower's ownership and, to the best of Borrower's
knowledge, presently complies.

5.7  Access to the Property.  All roads, streets, traffic turn lanes, and
access ways necessary for the full utilization of the Property for its
intended purposes have either been completed or the necessary rights of way
have either been acquired by the appropriate Governmental Entity or have
been dedicated to public use and accepted by the appropriate Governmental
Entity, and all necessary steps have been or will be taken by Borrower and
the appropriate Governmental Entity to assure the complete construction and
installation thereof by the time needed for construction and/or occupancy
and operation of the Improvements.

5.8  Utilities.  All utility services and facilities ("Utilities") necessary
for the construction of the Improvements and the operation thereof for its
intended purposes, including without limitation, water supply, storm and
sewer facilities, natural gas, electric, cable and telephone facilities, are
either available at the boundaries of the Property, or, if not, all
necessary steps have been taken by Borrower and the local authority or
public utility company which provides such services to assure the complete
installation and availability thereof when needed for construction and/or
occupancy and operation of the Improvements.

5.9  Approval of Plans and Budgets.  The Plans prepared by Borrower shall
include without limitation all infrastructure and utility systems, waterways
and water features, landscaping, mechanical, electrical, structural and such
other drawings as may be required to complete the Improvements in accordance
with applicable building codes and any recorded plats, and any private
declaration of covenants, shall be acceptable in all respects to Bank and
shall be true, complete and an accurate reflection of the Improvements that
Borrower will construct.  Prior to approval by Bank, such Plans shall be
satisfactory to and approved by Borrower and shall have also been approved
by all Governmental Entities and by any architectural control committee, if
any, having authority over the Property.  Borrower represents that the
approved budget (the "Approved Budget") attached hereto as Exhibit B is
presently a good faith estimate of necessary costs and expenses to be
incurred in the construction of the Improvements and that until such time as
Bank approves a requested change in the Approved Budget pursuant to Section
8.5, for the construction of the Improvements and the necessary permits and
approvals for the then-applicable stage of construction of the Improvements
have been obtained no Construction Funds will be disbursed by the Bank for
costs and expenses which are not specifically provided for in the Approved
Budget.

5.10  Compliance With Documents.  As of the date hereof and for so long as
the Loan Documents remain in effect, Borrower is and will remain in full
compliance with all of the terms and conditions of this Agreement and the
Loan Documents, and no Default has or shall have occurred or shall have
occurred and be continuing, which, with the lapse of time or the giving of
notice, or both, would constitute an Event of Default under the foregoing.

5.11  Incorporation of Representations and Warranties.  The request by the
Borrower for any advance of Construction Funds or Owner's Equity under this
Agreement shall constitute a certification by the Borrower that the
representations, warranties and covenants contained in this Article V are
true and correct as of the date of such request, except with respect to
financial statements to the extent that such statements have been prepared
with respect to an earlier date and except as otherwise disclosed in writing
to the Bank, prior to the date of this Agreement.

5.12  Margin Stock.  No part of the proceeds of the Loan shall be used at
any time by the Borrower to purchase or carry margin stock (within the
meaning of Regulation U promulgated by the Board of Governors of the Federal
Reserve System) or to extend credit to others for the purpose of purchasing
or carrying any margin stock.  The Borrower is not engaged principally, or
as one of its important activities, in the business of extending credit for
the purpose of purchasing or carrying any such margin stock.  No part of the
proceeds of the Loan hereunder will be used by the Borrower for any purpose
which violates, or which is inconsistent with, any regulations promulgated
by the Board of Governors of the Federal Reserve System.

5.13  Solvency.  The fair, salable value of the assets of the Borrower is in
excess of the total amount of its liabilities as they become absolute and
matured, and the Borrower is able to meet its debts as they become due and
payable in accordance with the Borrower's ordinary business practices.

5.14  Compliance With Construction Documents.  Borrower shall promptly
comply with all provisions of the Construction Contract, Architect's
Contract and any other contract or agreement, public or private, regarding
the construction of the Improvements (collectively the "Construction
Documents") which require approval or action by Borrower in a timely manner
to insure completion of the Improvements within the construction schedule
provided in the Construction Documents and in construction schedules
submitted to the Bank.

5.15  Survival of Representations.  All representations, warranties and
covenants contained in this Article V shall survive the delivery of the Note
and the Loan Documents, and the making of the Loan evidenced thereby and any
investigation at any time made by or on behalf of the Bank shall not
diminish its rights to rely on all of such representations and warranties;
provided, however, that Borrower's representations, warranties and covenants
shall not survive the sale of the Property by the Bank to a third party
following foreclosure or deed in lieu of foreclosure.

ARTICLE VI

GENERAL COVENANTS

Until the Obligations are paid and performed in full, the Borrower agrees
that,  unless Bank otherwise agrees in writing in Bank's absolute and sole
discretion:

6.1  Financial Information.  Each Loan Party will furnish to the Bank copies
of such financial statements, reports and information as may be reasonably
requested by the Bank, including without limitation the following financial
statements, reports and information for which no additional request shall be
required:

(a)  (i) As soon as available and in any event within ninety (90) calendar
days after the end of each calendar year a copy of Borrower's audited
financial reports, including balance sheet, related statements of earnings,
income statements and cash flow statement for such calendar year, prepared
in accordance with GAAP, audited by Borrower's independent certified public
accountant; the statements shall be accompanied by a certificate signed by
the officer of the Borrower responsible for financial matters stating that,
in his opinion, such audited financial statements fairly present the
financial position of the Borrower as of the date and for the period
covered, (ii) within thirty (30) days after the end of each calendar
quarter, copies of operating statements for the Property certified without
qualification or exception by the officer of Borrower responsible for
financial matters; (iii) within ninety (90) days after the end of each
fiscal year, a copy of Borrower's federal and state income tax returns with
all exhibits and schedules; and (iv) within ninety (90) days after the end
of each fiscal year of Borrower, a statement of Borrower's annual cash flow
projections for the succeeding year.

6.2  Payment of Taxes.  Unless paid by Bank pursuant to Section 4.4(b) of
the Deed of Trust, the Borrower shall pay and discharge, prior to
delinquency, all taxes, assessments and other governmental charges, levies
or impositions against or on any of its properties and assets, as well as
claims of any kind, which, if unpaid, might become a lien upon any of its
properties.  The Borrower shall make all required withholding deposits.

6.3   Notices.  Borrower, as soon as practicable, shall give notice to the
Bank of:

(a)    The commencement of any uninsured litigation relating to any Loan
Party or relating to the transactions contemplated by this Agreement;

(b)  The commencement of any material arbitration or governmental
investigation or proceeding not previously disclosed by the Borrower to the
Bank in writing which has been instituted or, to the knowledge of the
Borrower, threatened against the Borrower or to which its properties or
assets are subject which, if determined adversely to the Loan Party would
constitute a Material Adverse Occurrence;

(c)  Any adverse development which occurs in any litigation, arbitration or
governmental investigation or proceeding previously disclosed by the
Borrower to the Bank which, if determined adversely to the Borrower would
constitute a Material Adverse Occurrence;

(d)   Any Event of Default under this Agreement or the Loan

Documents.

6.4  Books and Records, Periodic Audits.  The Borrower shall keep books and
records concerning the Property reflecting all of its business affairs and
transactions in accordance with GAAP and permit the Bank, and its
representatives and agents at reasonable times and intervals and upon
reasonable notice to the Borrower, to visit all of its offices, discuss its
financial matters with officers of the Borrower and its independent public
accountant (and by this provision the Borrower authorizes its independent
public accountants to participate in such discussions) and examine any of
its books and other corporate records.  Such audits shall be at the expense
of the Bank.

6.5  Inconsistent Agreements.  The Borrower shall not enter into any
agreement containing any provision which would be violated or breached by
the Borrower in the performance of its obligations under any Loan Document.

6.6  Accuracy of Information.  All factual information heretofore or
herewith furnished by or on behalf of the Borrower to the Bank for purposes
of or in connection with this Agreement or any transaction contemplated
hereby is, and all other such factual information hereafter furnished by or
on behalf of the Borrower to the Bank will be true and accurate in every
material respect on the date as of which such information is dated or
certified and no such information contains any misstatement of fact or omits
to state a fact or any fact necessary to make the statements contained
therein not misleading.

6.7  Compliance with Laws.  The Borrower shall carry on its business
activities in substantial compliance with all applicable federal or state
laws and all applicable rules, regulations and orders of all governmental
bodies and offices having power to regulate or supervise its business
activities.

6.8  Conduct of Business.  The Borrower shall maintain and keep its assets,
property and equipment in good repair, working order and condition and from
time to time make or cause to be made all needed renewals, replacements and
repairs.

6.9  Maintain Business.  The Borrower shall continue to engage primarily in
the business being conducted on the date of this Agreement until it shall
receive the written consent of the Bank to do otherwise, such consent shall
not be unreasonably withheld.

6.10  Consolidation, Merger, Sale or Disposal of Assets.  The Borrower shall
not without the consent	of the Bank, which consent shall not be unreasonably
withheld or delayed: -

(a) consolidate or merge into or with any other entity; or

(b)  sell, (other than sales of inventory in the ordinary course of
business) transfer, lease, except for residential tenant leases, or
otherwise dispose of all, or substantially all, of its assets during the
term of this Agreement.

6.11  Compliance with Permanent Commitment.  Borrower shall comply with all
requirements under the Permanent Commitment in order to maintain the
Permanent Commitment in full force and effect and shall give the Bank prompt
notice of any notice of alleged default under or termination of the
Permanent Commitment.

6.12  Prohibition Against Distribution.  The Borrower shall not declare or
set aside any sums of money or other asset or property for the payment of
any dividends or pay any sum of money or other asset or property, on or with
respect to any share of capital stock or ownership interest or other equity
interest in itself or any subsidiary, whether in the form of equity or debt,
without the prior written approval of the Bank in its sole discretion.

ARTICLE VII COVENANTS REGARDING CONSTRUCTION OF THE IMPROVEMENTS

In addition to the covenants set forth in the Loan Documents and those set
forth in other sections of this Agreement, Borrower covenants and agrees as
follows with respect to construction of the Improvements:

7.1  Construction Start and Completion.  Borrower has commenced or will
promptly commence construction of the Improvements and shall diligently
proceed with such construction of the Improvements in accordance with the
Plans, in good and workmanlike manner and shall complete construction of the
Building and Improvements in accordance with the Plans on or before nine
months from the date hereof (the "Completion Date"); provided however, such
date shall be advanced for the period of time in which construction is
delayed by acts of God, war, riot, fire, strike, lockout, or other causes
beyond Borrower's reasonable control (which shall not include inability for
any reason to meet its financial obligations).  Borrower will, upon
completion, cause the Improvements to be inspected by each appropriate
Governmental Entity, and shall correct any defects and deficiencies which
may be disclosed by any such inspection and shall cause to be duly issued
all occupancy certificates and other licenses, permits, and authorizations
necessary for the operation and occupancy of the Property.  Borrower shall
comply with any and all provisions of the Construction Documents regarding
Borrower's obligations to review and approve items in order that
construction and equipping of the Improvements may be completed on or before
scheduled completion under the Construction Documents.  In any event,
Borrower shall do and perform all of th6 foregoing and cause to be issued
and executed all such occupancy certificates, licenses and authorizations on
or before the Completion Date.

7.2  Changes to Plans.  There shall be no material change of any of the
Plans or working drawings whether by change order or otherwise which will
increase the hard costs included in the Approved Budget without the prior
written approval of Bank, which approval shall not be unreasonably withheld,
and, to the extent that such approvals may be required, the appropriate
Governmental Entities.  As a condition to its approval of any change, Bank
may require verification that the change will not increase the total cost of
constructing the Improvements or the time required to complete construction
of the Improvements.  If the proposed change may affect the Approved Budget,
Borrower shall follow the procedure described in this Agreement in
requesting Bank to approve such change.  Borrower shall provide Bank with
notices of all written change orders, whether or not Bank's written approval
thereof is required under this Section.  Notwithstanding the provisions of
this Section 7.2, Borrower shall not be required to obtain Lender's consent
to any individual change order of $25,000.00 or less, provided the aggregate
of all other change orders does not exceed $100,000.00.

7.3  Compliance with Laws.  All work performed in connection with the
Project shall comply with all applicable laws, ordinances, rules and
regulations of federal, state, county or municipal governments or agencies
now in force or which may be enacted hereafter, and with all directions,
rules and regulations of the fire department, health department, building
department or other departments of every governmental agency now having or
hereafter acquiring jurisdiction over the Property or construction of the
Improvements.

7.4  Protection Against Liens.  Borrower agrees to pay and discharge all
claims for labor performed and material and services furnished in connection
with construction of the Improvements, and to take all other steps necessary
to forestall the assertion of claims or liens either against the Property,
the Improvements, or any part thereof or right or interest appurtenant
thereto, or of claims against the Bank.  Nothing herein contained shall
require Borrower to pay any claims for labor, materials or services which
Borrower or Contractor (or a Subcontractor) in good faith disputes and which
Borrower or Contractor, at its (or their) own expense, is currently and
diligently contesting, provided, however, that Borrower shall, not later
than thirty (30) days after the notice of the filing of any claim or lien
against the Property or notice of intent to file such a lien, or the
Improvements which is disputed or contested by Borrower, either file a
surety bond sufficient to release said claim or lien and promptly give
notice of such filing to the lienholder or claimant, all as permitted by
Colorado statute, or make other arrangements therefor reasonably
satisfactory to the Bank.  The Bank shall not be required to extend the
Maturity Date of the Loan by reason of Borrower's failure to pay such
claims.

7.5  Construction Ins]2ections.

(a)  Bank and its representatives or agents shall have the right at all
reasonable times during regular business hours (and at any time in the event
of an emergency) to enter upon the Property and inspect the work of
construction to determine that the same is in substantial conformity with
the Plans and all of the requirements hereof and to verify directly with
Subcontractors the information given to the Bank regarding the Subcontract
or the amounts shown on the Advance Request.  Bank shall from time to time,
retain an independent engineer or consultant ("Project Inspector"), at
Borrower's expense, to review the Plans, Approved Budget, Advance Requests,
and any other documents or information relating to construction of the
Improvements, and inspect the work and verify compliance by Borrower with
the provisions hereof.  If Borrower does not reimburse Bank for the cost of
such services within a reasonable time after Bank's request, the cost of
such services may be deemed to be an advance of credit under the Loan and,
at Bank's option, shall be added to the principal balance of the Note;
provided, however, that Bank shall not be required to undertake such
inspections or reviews, and the making of any such inspection or review
shall not create or impose any responsibility or liability of the Bank for
the quality of construction or for the compliance of the Improvements with
the Plans or any governmental requirements, and Borrower releases and holds
Bank harmless from any responsibility or liability with respect to any such
inspection or review.

 (b)  Borrower understands and agrees that said inspections are for  the
 sole purpose of protecting	the advances under the Loan and Bank's
 security for the Loan and  are made solely for the Bank's benefit; that
 such inspections may be superficial and general in nature, primarily to
 inform Bank of the progress of construction of the Improvements and, that
 in any event, Borrower shall not be entitled to rely on any such
 inspection(s) as constituting Bank's approval, satisfaction or acceptance
 with respect to materials, workmanship, conformance to Plans or otherwise.
 Borrower hereby agrees to make its own inspections of the construction to
 determine that the quality of the Improvements and all other requirements
 of the work of construction financed hereby are being performed in a manner
 satisfactory to Borrower, and to immediately notify Bank in writing should
 the same show any work to be unsatisfactory in any manner.  Without
 limiting the foregoing, Borrower shall permit Bank to examine and copy all
 books and account records and other papers relating to the Property and the
 construction of the Improvements, and Borrower will cause all contractors,
 subcontractors and materialmen to cooperate with Bank.

(c)  Borrower shall pay for all inspections, whether made by an independent
architect, engineer, or other inspector, or by Bank.  Borrower shall pay to
Lender $5,475.00 on the date of closing to defray the cost of such
inspection of the Project, whether such inspection is performed by an
independent inspector or by Bank.  To the extent not otherwise provided for
in the Approved Budget, Borrower shall pay such costs from funds other than
the proceeds of the Loan.

7.6  Damage or Destruction.

(a)  If the Improvements, or any part thereof, are damaged or destroyed by
fire or any other cause, and Borrower shall desire to restore the
Improvements or shall be required by the Bank to restore the Improvements,
Borrower shall, subject to the provisions of this Section, immediately
proceed with the restoration thereof in accordance with the Plans, and shall
diligently complete the work of restoration, provided that Bank makes
available to Borrower as restoration progresses any insurance proceeds
actually paid to Bank in respect to such damage or destruction.  If (i) in
the Bank's reasonable judgment the insurance proceeds are sufficient to
complete the restoration prior to the Maturity Date or such later date as
Bank may elect and within the Approved Budget applicable to the Building to
be restored; and (ii) no Default exists under the Loan Documents
("Restoration Conditions"), the Bank shall advance the insurance proceeds to
Borrower as restoration progresses in the same manner as the Bank disburses
advances of the Loan proceeds hereunder.  If any one or more of the
Restoration Conditions does not exist, the Bank shall have no obligation to
authorize further advances of Construction Funds or Owner's Equity
hereunder, and may call the Loan immediately due and payable in accordance
with the following paragraph; provided, however, if, in the Bank's judgment
the insurance proceeds are insufficient to complete the restoration,
Borrower may satisfy such condition by depositing with the Bank as
additional Owner's Equity such money as in the Bank's reasonable judgment
(based 'on bids or estimates of reputable contractors) is sufficient to
complete the restoration in accordance with the Plans in a timely manner and
fully pay the costs thereof.

(b)  If in the Bank's reasonable judgment the Improvements cannot be
restored in accordance with the Plans and the Approved Budget in a timely
manner as described above or, if Borrower does not or cannot deposit as
additional Owner's Equity such money or additional money as in the Bank's
judgment is required to complete the restoration and fully pay the cost
thereof, or if a Default exists under the Loan Documents, such event shall
be deemed an Event of Default hereunder, and the Bank's obligations to
authorize further advances of Construction Funds or Owner's Equity hereunder
or to make insurance proceeds available for restoration shall immediately
terminate.  The Bank may in such case apply any insurance proceeds and/or
undisbursed Construction Funds and Owner's Equity in the manner set forth in
Section 9.2(a) hereof, to reduce the outstanding indebtedness of Borrower
under the Loan and may exercise any of the other remedies which are
described in Section 9.2 hereof or in the Loan Documents.

(c)  In the case of loss, the Bank is hereby authorized to participate in
any settlement or adjustment of claims under insurance policies, as its
interest may appear, and to collect and receipt for any proceeds.  In the
event the Bank elects to apply the proceeds to restoration, in keeping with
the Restoration Conditions, such proceeds shall be made available, from time
to time, under substantially similar terms and conditions as provided in
this Agreement for advances from Construction Funds and Owner's Equity.

7.7  Condemnation.

(a)  If all or any part of the Property is expropriated, condemned, taken by
power of eminent domain, or transferred in anticipation of any such
circumstances by any competent authority, then the proceeds of any such
award or settlement made as compensation or damages for such expropriation,
condemnation, exercise of the power of eminent domain or the transfer in
anticipation of any such circumstance shall be paid to the Bank.  The Bank,
at its election and subject to the provisions of Section 7.7(b), may pay or
apply such amount in any one or more of the following ways and in such order
as the Bank shall determine:

(i)   to costs of collection thereof;

(ii)  payment of any expenses and fees of the Bank associated with this
Agreement and the other Obligations of the Borrower hereunder, the payment
of accrued and unpaid interest on the Loan, and the reduction of unpaid
principal of the Loan;

(iii)   to the payment of obligations incurred by the Bank or the Borrower
in the repair or replacement of damage to the Improvements;

 (iv)  to make payment to the Borrower for the costs of restoration and
 repair of the Improvements; or

(b)  If the Improvements, or any part thereof, are taken by condemnation or
subject to imminent threat of condemnation, Bank's obligation to authorize
further advances of Construction Funds or Owner's Equity hereunder shall
immediately terminate unless, in the Bank's reasonable judgment, the
Improvements can be replaced and restored in a manner which will enable the
Improvements to be functionally and economically utilized and occupied as
originally intended, in which event the condemnation proceeds shall be made
available to Borrower for such purpose.  Whether the Bank, in its reasonable
judgment, determines that the Improvements can be so restored and replaced
or not, the rights and obligations of Bank and Borrower thereafter, and the
handling and utilization of any condemnation proceeds actually paid to the
Bank and undisbursed Construction Funds and Owner's Equity, shall be the
same as described in the immediately preceding Section 7.6 hereof.

7.8  Indemnify Bank.  Borrower shall indemnify and hold the Bank harmless
from all liability for any actual or alleged damage or injury of whatsoever
nature arising out of or in any way connected with the Property and/or the
construction of the Improvements or arising out of Borrower's breach of the
provisions of this Agreement except for the gross negligence or wilful
misconduct of the Bank.  The Bank may commence, appear in or defend any
action or proceeding purporting to affect the rights, duties or liabilities
of the parties hereto, or the Property or the Improvements and Borrower
shall pay all of Bank's reasonable costs and expenses incurred thereby on
demand.  This Section shall survive execution, delivery and performance of
this Agreement, the Deed of Trust and the Loan Documents.

7.9  Personal Property Incorporation.  Prior to completion of the
Improvements and at Bank's request, Borrower shall provide to the Bank, when
requested but no more frequently than upon Advance Requests, an inventory of
the Personalty and shall execute such financing statements as may be
reasonably required to perfect the Bank's lien on the same.  No Personalty
shall be purchased or installed in the Improvements by Borrower under any
security agreement, conditional sales contract or other agreement wherein
the seller reserves a security interest in, or the right to remove or to
repossess, such items or to consider them personal property after their
incorporation into the Improvements.  Any construction material for which
Bank authorizes the advance of Construction Funds or Owner's Equity is to be
stored on the Property or, with the Bank's prior consent, stored off-site
and identified to the Construction Contract, and/or the Property and in the
Bank's judgment must be reasonably secure from damage and theft and fully
insured at all times.

7.10  Further Assurances.  Borrower will at any time and from time to time
upon request of the Bank take or cause to be taken any action, execute,
acknowledge, deliver or record any further documents, opinions, mortgages,
security agreements, financing statements or other instruments or obtain
such additional insurance as Bank in its discretion deems reasonably
necessary or appropriate to carry out the purposes of this Agreement and to
preserve, protect and perfect the security interests intended to be created
and preserved in the Property, the Project, the Personalty, and other
properties and assets securing the obligations of the Borrower under this
Agreement and the Loan Documents.

ARTICLE VIII DISBURSEMENT OF CONSTRUCTION FUNDS

8.1  Disbursement Schedule and Construction Disbursement Account.  Upon at
least five (5) business days' prior written request by Borrower in the form
of an Advance Request, made no more often than once per calendar month, and
delivery of all items required thereunder including without limitation (a)
invoices equal to the amount of funds requested for construction costs for
each and every disbursement; (b) appropriate unconditional mechanic lien
waivers from each party as to work and materials previously paid; (c) a
vendor payee listing showing the name and the amount currently due each
party to whom Borrower is obligated for labor, materials and/or services
supplied for the applicable Advance Request; (d) checks drawn on the
Construction Account made payable to each vendor payee signed by Borrower;
and (e) pre-stamped addressed envelopes to each vendor payee.  Funds
requested by Borrower shall be listed by line item with the total of
corresponding amounts being equal to the Advance Request.  The total funds
requested shall represent the total amount of the approved invoices.  Except
as otherwise expressly provided herein, all disbursements of the
Construction Funds and Owner Equity shall be made into Borrower's
construction disbursement account maintained at the Bank ("Construction
Account").

8.2  Interest Reserve.  Included in the Approved Budget is an Interest
Reserve estimated to be sufficient to meet interest requirements accruing
under the Loan prior to the Maturity Date.  Subject to the conditions to
disbursement set forth in this Agreement, Bank shall use the Interest
Reserve to allow Borrower to pay unpaid accrued interest on the Loan in one
of the methods selected by Bank.  Without limiting the foregoing, as one of
the methods available to Bank, Bank may, for each and every calendar month,
record on and then enter into its books or records an additional advance of
principal of the Construction Funds in the amount of the unpaid accrued
interest to then become due, on and effective as of the first day of the
calendar month, or such day as the Bank shall elect, and Bank may
simultaneously record and enter the receipt by it of such accrued interest,
on and effective the same day.  Every such recordation and entry of
principal advance and receipt of interest payment shall be deemed to be made
on the first day of the calendar month, notwithstanding that the actual
recordation or entry may occur at a later date.  No separate fund or account
shall be created for the Interest Reserve.  Bank may in its sole discretion
refuse to allow interest to be paid from the Interest Reserve by any method,
if (a) an Event of Default has occurred, or (b) disbursements under the Loan
have been suspended for any reason for a period of thirty (30) days or more.
If Bank determines not to pay interest in the event any of the foregoing
conditions exist, or if the amount available for payment of interest from
the Interest Reserve is insufficient to pay any accrued interest when due,
the Bank shall so notify Borrower and thereupon Borrower shall be obligated
to pay such interest to Bank when due, without the use of any Construction
Funds therefor.

8.3  Direct Payments.  In the event that Borrower fails to make such
payments when due, Bank may in its sole but reasonable discretion require
one or more disbursements of part or all of the Construction Funds or
Owner's Equity to be paid directly to any person(s) to whom any amount
disbursed is payable, including, but not limited to, contractors,
subcontractors, laborers, materialmen and/or Bank, or Bank may authorize any
such disbursement jointly to Borrower and such other person(s).  Borrower
hereby authorizes Bank to so require the disbursement of the Construction
Funds and/or the Owner's Equity by any manner or method to Borrower and/or
to any other person(s) to whom any amount disbursed is payable, and Borrower
agrees that any and every disbursement in any manner to any person(s) hereby
authorized shall constitute disbursement to Borrower.

8.4  Discretionary Disbursements.  In the event that Borrower fails to make
such payments when due, Bank may in its sole discretion, but shall not be
obligated to, upon ten (10) days' written notice thereof to Borrower,
approve disbursements from the Construction Funds or Owner's Equity to pay
(a) part or all of any or all mortgages or deeds of trust recorded after the
date Borrower acquires title to the Property (no permission of the Bank
hereby applied); (b) except to the extent the taxes or assessments are for
the period prior to the date Borrower acquires title to the Property, any or
all assessments and taxes of any kind or character, including but not
limited to any withholding tax and any real estate taxes and/or special
assessments affecting the Property, whether delinquent or not; (c) claims,
liens and/or judgments against or affecting Borrower or claims, liens or
judgments affecting the Property based on actions after the date Borrower
acquires title to the Property; (d) any and all other additional costs,
expenses or items appropriate to maintain or place the Deed of Trust in a
first lien priority position, or (e) such other costs, expenses and sums as
may be owing from time to time by Borrower to Bank under or with respect to
any of the Loan Documents, including but not limited to any amounts owing
for insurance required thereunder, and (f) any amounts necessary to complete
construction of the Improvements as provided in Section 9.2(c).

8.5  Approved Budget.  All disbursements shall be based upon the most
current Approved Budget then in existence which has been approved by Bank in
writing.  Borrower agrees that, in the event of any change which would
increase the hard costs or soft costs, as stated in the initial Approved
Budget (or in any subsequent, revised Approved Budget approved by Bank in
writing), including but not limited to any change in the amount or type of
any such cost or expense, reallocation of line items in the Approved Budget
and reallocation from the Contingency Amounts to other budget categories,
whether or not any such change would or would not increase the total overall
costs and expenses, Borrower shall then immediately notify Bank thereof in
writing, and unless the Bank approves the Revised Plans as provided in
Section 7.2., Bank shall not have any obligation to approve any disbursement
or further disbursement of any Construction Funds and/or Owner's Equity
unless and until such proposed revised Approved Budget is approved by Bank
in writing.  Bank reserves the right to approve or disapprove any proposed
revised Approved Budget in its sole but reasonable discretion.  Borrower
agrees that the Approved Budget shall be based on signed contracts or firm
bids available to Borrower or such allowances as set forth in the
Construction Contract.  Notwithstanding the foregoing, Borrower shall not be
required to obtain Bank's consent to any individual change order of
$25,000.00 or less, provided the aggregate of all other change orders does
not exceed $100,000.00.

8.6  Obligatory Disbursements to Be Used Solely for Improvements.  Except as
otherwise expressly provided in this Agreement the Bank shall approve the
disbursement of the Construction Funds solely to provide funds for the
development and construction of the Improvements, including such soft costs
as are outlined in the Approved Budget as allocated from Construction Funds.

8.7  No Waiver.  The Bank shall not have made or be deemed to have made any
waiver of any condition to any disbursement as provided herein, unless
expressly made in a writing signed by an authorized officer of the Bank. The
approval of any disbursement by the Bank shall not constitute approval by
the Bank of any work, costs or expenses for which such disbursement is made,
or of any design, manufacturing, structural or other defect in any such work
or of any departure from the Plans not approved in writing by Bank.  The
approval of any disbursement prior to fulfillment of one or more conditions
thereof shall not be construed as a waiver of any such condition, and Bank
reserves the right to require fulfillment of any and all such conditions
prior to approving any subsequent disbursement.

8.8  Ownership of Advances.  It is acknowledged and agreed that Borrower
shall not own, possess or control any Construction Funds and/or cash
deposits of Owner's Equity or any disbursement thereof, any interest or
other reserve and/or any right in or to any of the foregoing, specifically
including amounts that may or are to be deposited in or allocated to any
loan in process account or reserved from time to time by either Borrower,
Bank and/or any other person(s), except to have the same used by Borrower in
accordance with this Agreement, the Loan Documents and Borrower hereby
irrevocably and unconditionally assigns to Bank all of Borrower's rights,
title and interest therein and thereto.  Borrower further agrees that all
Construction Funds and Owner's Equity and any disbursements thereof received
by Borrower shall be received by it as a trust and trust fund, and that the
same shall be used and applied by Borrower solely in accordance with this
Agreement and the Loan Documents and shall not be diverted or otherwise used
in any manner.

8.9  All Disbursements Secured by Loan Documents.  It is expressly
understood and agreed that any and all disbursements, payments- or advances
made by the Bank, from time to time pursuant to the terms of the Loan
Documents, for whatever purposes, no matter to whom made, and whether or not
the Bank is then obligated to make any disbursement, and whether or not the
Bank has approved such disbursements, or an Event of Default exists under
any of the Loan Documents, including but not limited to disbursements for
any unpaid costs or expenses refereed to in Section 8.4 of this Agreement
shall, as and when made, be deemed authorized by Borrower and made pursuant
to this Agreement, and shall become and remain secured by the Loan Documents
and considered part of the Obligations secured thereby, provided that such
disbursements are made pursuant to the terms of the Loan Documents.

8.10 Deadline for Disbursement of All Loan Proceeds.  Any other provision
contained in this Agreement to the contrary notwithstanding, if for any
reason the total amount of the Construction Funds, together with the Owner's
Equity, has not been fully disbursed prior to the Completion Date, except
for such amounts as are required or permitted under the Loan Agreement, then
Bank shall not be obligated to approve any further disbursement(s) thereof,
and any then undisbursed Construction Funds and undisbursed Owner's Equity
may be applied by Bank in any manner or order, such as: first, to any costs
and expenses incurred by Bank in connection with the Loan; then, to unpaid
accrued interest on the Note; and then, to any amounts owing under any of
the Loan Documents, including but not limited to principal owing under the
Note.  Any such or other application shall not constitute a waiver or
operate to cure any breach or Default existing under any of the Loan
Documents, nor to invalidate any notice of Default or any act done pursuant
to such notice and shall not prejudice any rights or powers of the Bank
under the Deed of Trust or other Loan Documents.

ARTICLE IX

DEFAULT AND REMEDIES

9.1     Event of Default.  The occurrence of any of the following events
shall  constitute an Event of Default hereunder:

(a)  The Borrower shall default in the payment when due of any payment of
principal or interest owing to Bank under the terms of the Note (giving
effect to any grace period provided therein applicable to the default).

(b)    A default shall occur in the due performance and observance of any of
the covenants and conditions of this Agreement or the Loan Documents, other
than a monetary obligation, which breach is not cured to Bank's satisfaction
within the applicable cure period for breach of such	covenant or
condition, and, if no specific cure period is provided, within thirty (30)
days of notice of such default being sent by the Bank to Borrower; provided,
however, that if such default is not curable within such thirty (30) days,
then, so long as Borrower delivers to Bank, within ten (10) days after
notice, its written undertaking to cure, commences to cure such default
within such thirty (30) day period and is diligently pursuing such cure to
completion, such default shall not constitute an Event of Default unless
such default remains uncured for such sixty (60) days after such written
notice to Borrower.

(c)    Any written representation, warranty or disclosure made by Borrower
proves to be materially false or misleading as of the date when made,
whether or not such representation or disclosure appears in this Agreement,
the Loan Documents, or items submitted by Borrower in connection therewith.

(d)  Any claim or lien shall be filed against the Property or any part
thereof; provided, however, that no default shall exist hereunder as long as
Borrower has fully complied with any conditions provided herein to permit
Borrower's contest of such claim or lien.

(e)  Borrower fails to make any deposit of funds including additional
Owner's Equity required hereunder, or under the Loan Documents within the
time required for payment which failure shall continue for five (5) days
after written notice from the Bank to Borrower.

(f)  Any material deviation shall occur in the work of construction from the
Plans without the approval of Bank, or the occurrence of defective
workmanship or materials not in accordance with the Plans or completed in
compliance with industry standards for similar projects, which deviations or
defects are not corrected, substantially corrected, or a plan for their
timely correction approved by the Bank within thirty (30) days after receipt
of written notice from Bank to Borrower.

(g)  The work of construction is delayed or suspended for a period of sixty
(60) calendar days or more beyond the construction schedule in the
Construction Documents or as submitted to the Bank for any reason except
those which are beyond the reasonable control of Borrower, or the work of
construction is not completed by the Completion Dates or such later dates as
Bank may approve, and Borrower has not submitted a reasonable plan for
completing construction which Bank has approved.

(h)    There occurs any Material Adverse Occurrence.

(I)  Any of the Improvements encroach over the Property or setback lines or
upon an easement, or any structure upon an adjoining Property encroaches
upon the Property, to an extent reasonably deemed material by Bank, and an
appropriate title insurance endorsement or plans for the cure of which
encroachment are not provided to Bank's satisfaction within thirty (30) days
after written notice thereof from Bank to Borrower or Borrower shall fail to
diligently pursue such cure to completion within a reasonable time (not to
exceed thirty (30) days).

0)  There occurs an Event of Default in the payment and performance of
Borrower under the Development Loan or any of the Development Loan
Documents.

(k)      There occurs a failure of Restoration Conditions upon damage or
destruction as provided in Section 7.6.

 (1)  There shall be existing any Event of Default beyond applicable cure
 periods under the Permanent Commitment permitting the Permanent Lender to
 cancel or terminate the Permanent Commitment or the Permanent Lender shall
 have exercised any right contained in the Permanent Commitment to cancel or
 terminate the Permanent Commitment.

Borrower acknowledges and agrees that all material non-monetary defaults are
conclusively deemed to be and are defaults which impair the security of the
Loan Documents, and that Bank shall be entitled to exercise any appropriate
remedy, including without limitation, foreclosure of the Loan Documents upon
the occurrence of any such material non-monetary default after the
expiration of any cure period, if applicable.

9.2  Remedies.  Upon the occurrence of an Event of Default, Bank may, in
addition to any other remedies which Bank may have hereunder or under the
Loan Document or by law, at its option and without prior demand or notice
take any or all of the following actions:

(a)  Immediately terminate any further approval of advances of Construction
Funds and/or Owner's Equity and use any portion of the Owner's Equity held
by the Bank to reimburse the Bank for any costs incurred under the Note or
this Agreement.

(b)    Declare the Obligations under the Note immediately due and payable.

(c)  Enter upon the Property and complete construction of the Improvements
 in accordance with the Plans and Approved Budget, except as necessarily
 increased by additional development and construction costs arising from
 Borrower's default or additional costs approved by a court, with such
 changes therein as Bank may from time to time and in its reasonable
 judgment deem appropriate, all at the risk and expense of Borrower.  The
 Bank shall have the right at any time to discontinue any work commenced by
 it in respect to the Improvements or to change any course of action
 undertaken by it and not be bound by any limitations or requirements of
 time whether set forth herein or otherwise.  Bank shall have the right and
 power to assume any construction contract made by or on behalf of Borrower
 in any way relating to the Improvements and to take over and use all or any
 part of the labor, materials, supplies and equipment contracted for, by or
 on behalf of Borrower whether or not previously incorporated into the
 Improvements, all in the discretion of Bank.  In connection with any work
 of construction undertaken by Bank pursuant to the provisions of this
 Section, Bank may (i) engage builders, contractors, and others for the
 purpose of furnishing labor, materials and equipment in connection with the
 work of construction and architects and engineers as reasonably necessary
 to complete construction of the Project, (ii) pay, settle or compromise all
 bills or claims which may become liens against the Property or which have
 been or may be incurred in any manner in connection with completing
 construction of the Improvements or for the discharge of liens,
 encumbrances or defects in title of the Property, and (iii) take such other
 action, including the employment of watchmen to protect the Improvements,
 or refrain from taking action under this Agreement as Bank may in its
 discretion reasonably determine from time to time.  Borrower shall be
 liable to Bank for all sums paid or incurred for completing construction of
 the Improvements whether the same shall be paid or incurred pursuant to the
 provisions of this Section or otherwise, and all payments made or
 liabilities incurred by Bank hereunder of any kind whatsoever shall be paid
 by Borrower to Bank upon demand with interest at the rate set forth in the
 Note, and all of the foregoing shall be deemed and shall constitute
 advances under this Agreement and be secured by the Deed of Trust and Loan
 Documents.  For the purpose of carrying out the provisions and exercising
 the rights, powers and privileges granted by this Section 9.2(c) hereof,
 Borrower hereby unconditionally and irrevocably constitutes and appoints
 Bank its true and lawful attorney-in-fact to enter into such contracts,
 perform such acts and incur such liabilities as are referred to in said
 Section in the name and on behalf of Borrower which are reasonably
 necessary to complete development and construction of the Improvements.
 This power of attorney is coupled with an interest.  Nothing contained
 herein shall relieve the Bank from its obligation to mitigate damages.

(d)  Where substantial deviations from the Plans appear which have not been
approved as set forth herein, or defective or unworkmanlike labor or
materials are being used in the development of the Improvements, or upon
receipt of knowledge of encroachments to which there has been no consent,
Bank shall have the right to immediately order stoppage of the construction
and demand that such conditions be corrected.  After issuance of such an
order in writing, no further work shall be done on that portion of the
Improvements where there is a substantial deviation from the Plans which has
not been approved as set forth herein or where there is defective or
unworkmanlike labor or materials, without the prior written consent of Bank
unless and until said condition has been fully corrected.

(e)  Foreclose on or realize upon any security for the Loan without waiving
its rights to proceed against any other security or other entities or
individuals directly or indirectly responsible for repayment of the
Obligations or waive any and all security for the Obligations as Bank may in
its discretion so determine, and pursue any such other remedy or remedies as
Bank may so determine to be in its best interest as provided herein or in
the Loan Documents.  All remedies of Bank provided for herein and in any
other Loan Document are cumulative and shall be in addition to all other
rights and remedies provided by law.  The exercise of any right or remedy by
Bank hereunder shall not in any way constitute a cure or waiver of default
hereunder or under any other Loan Document or invalidate any act done
pursuant to any notice of default, or prejudice Bank in the exercise of any
of its rights hereunder or under any other Loan Documents unless, in the
exercise of its rights, Bank realizes all amounts owed to it under such Loan
Documents.

9.3  Recertified Appraisal.  If at any time (a) an Event of Default under
the Loan Documents has occurred (giving effect to applicable cure and notice
periods, if any, contained in the Loan Documents), (b) the Bank determines,
in its sole but reasonable judgment, that the collateral position of the
Bank in relation to the credit extended for the benefit of the Borrower has
adversely changed as a consequence of material, physical or economic
impairment of the pledged collateral, or (c) the Bank is required by law or
regulation to obtain a new Appraisal, the Bank may require a new Appraisal
of the Property in for-m and content acceptable to the Bank to be prepared
at Borrower's expense.

ARTICLE X

PARTIAL RELEASE PROVISIONS

Borrower may request a partial release from the Deed of Trust for the
portion of the Property identified on Exhibit C attached hereto as the
"Development Parcel" (the "Development Parcel"), upon the following terms
and conditions:

10.1     Release Conditions for Development Parcel.  Bank shall partially
release the Development Parcel, defined below upon the following terms and
conditions:

(a)  Final Plat.  Borrower shall deliver to the Bank for its approval, which
approval shall not be unreasonably withheld or delayed, three (3) copies of
a recorded plat ("Concepts Direct Filing 1 Plat") delineating the dimensions
of Lot 1, Block 1, consisting of approximately 10.64 acres and depicted on
Exhibit C on which the Improvements shall be constructed ("Construction
Parcel"), and satisfactory ingress and egress to and from the Construction
Parcel, which Concepts Direct Filing I Plat must show easements, ditches,
streets, lot lines, rights-of-way, any lot, block and street delineations or
designations affecting the Construction Parcel and satisfactory easements
for utility services, and encroachments, if any, affecting the Construction
Parcel.

(b)  Development Parcel Legal Description.  A Survey certified to the Bank
and the Title Company in sufficient detail to identify the Development
Parcel and containing the legal description of the Development Parcel.

(c)  No Consideration.  Upon compliance with the terms of this Section 10. 1
and Section 10.2, the Bank will release the Development Parcel for no
additional consideration.

(d)  Beneficial Use.  Evidence satisfactory to the Bank of all easements
necessary for ingress and egress from the Construction Parcel to a public
street or road, and for installation and maintenance of Utilities and for
the beneficial use and enjoyment of the Improvements on the Construction
Parcel for the purpose for which the Improvements were constructed.

10.2     General Release Conditions.     With respect to the release of the
Development Parcel, the Borrower shall comply with the following terms and
conditions:

(a)  Segregated.  The Development Parcel shall be segregated on the tax roll
and assessed separately from the Construction Parcel or a reasonable and
mutually satisfactory agreement reached between Borrower and Bank as to the
proration of the taxes until such segregation occurs.

(b)     No Default.  No Event of Default shall exist at the time of request
for partial release or at the time of release.

(c)  Other Documents.  Such other standard documents or assurances as may be
reasonably required to accomplish the release in a manner reasonably
satisfactory to Bank and its counsel.

(d)  Title Policy Endorsement.  Upon the request of the Bank, Borrower shall
have submitted to Bank an endorsement to Bank's policy of title insurance,
ensuring that the priority of Bank's lien on the Construction Parcel is not
impaired by reason of the release and ensuring Bank's interest in any
retained easement and maintenance rights as a first and prior lien.

(e)  Costs.  Borrower shall directly pay for all costs and expenses incurred
in connection with compliance with the requirements set forth in this
Article 10, including, but not limited to, reasonable attorneys fees, title
insurance premiums and survey expenses.  In the event Bank incurs any
expenses arising out of Borrower's actions to comply with the provisions of
this Article 10, Borrower shall reimburse to Bank all such expenses as a
condition to Bank's obligations to partially release the Development Parcel.

10.3  Release Procedure.  Borrower shall provide Bank with a fully prepared
request for partial release for the Development Parcel to be released,
together with the items described in Section 10.1 and 10.2 not less than ten
(10) Business Days prior to the requested release date.

ARTICLE XI

MISCELLANEOUS

11.1  Arbitration.  The undersigned hereby agree that all controversies and
claims (including the existence of an Event of Default) of any nature
arising directly or indirectly out of any and all loan transactions between
them and any related agreements, instruments or documents, shall at the
written request of any party be submitted to binding arbitration pursuant to
the applicable rules of the American Arbitration Association.  The
arbitration shall proceed in Denver, Colorado, shall be governed by Colorado
law and shall be conducted in accordance with the Commercial Arbitration
Rule of AAA.  Judgment upon any award rendered by the arbitrator(s) may be
entered in any court having jurisdiction.

(a)  A single arbitrator shall have the power to render a maximum award of
one hundred thousand	dollars.  When any party files a claim in excess of
this amount, the arbitration decision shall be made by the majority vote of
three arbitrators.  No arbitrator shall have the power to restrain any act
of any party.

(b)  No provision of this Section shall limit the right of any party to
exercise self-help remedies, to foreclose against any real or personal
property collateral, or to obtain any provisional or ancillary remedies
(including but not limited to injunctive relief or the appointment of a
receiver) from a court of competent jurisdiction.  At Bank's option, it may
enforce its rights under a mortgage by judicial foreclosure, and under a
deed of trust either by exercise of power of sale or by judicial
foreclosure.  The institution and maintenance of any remedy permitted above
shall not constitute a waiver of the right to submit any controversy or
claim to arbitration.  The statute of limitations, estoppel, waiver, laches,
and similar doctrines which would otherwise be applicable in an action
brought by a party shall be applicable in any arbitration proceeding.

11.2  No Waiver.  No waiver of any Default or breach by Borrower hereunder
shall be implied from any failure by Bank to take action on account of such
default if such default persists or is repeated, and no express waiver shall
affect any Default other than the default specified in the waiver and shall
be operative only for the time and to the extent therein stated.  Waivers of
any covenant, term or condition contained herein shall not be construed as a
waiver of any subsequent breach of the same covenant, term or condition. The
consent or approval by Bank to, or of, any act by Borrower requiring further
consent or approval shall not be deemed to waive or render unnecessary the
consent or approval to, or of, any subsequent similar act.

11.3  Impounding of Advances.  Unless Bank is provided with an
indemnification or other assurance satisfactory to Bank (in Bank's sole
discretion), Bank may impound such Advances as may be required to enable
Bank to comply with the provisions of Colorado Revised Statutes, Section
38-22-126, as amended.

11.4  Successors and Assigns.  This Agreement is made and entered into for
the sole protection and benefit of Bank and Borrower, their successors and
assigns, and no other person or persons shall have any right of action
hereunder.  The terms hereof shall inure to the benefit of the successors
and assigns of the parties hereto; provided, however, that the Borrower's
interest hereunder cannot be assigned or otherwise transferred without the
prior consent of Bank.

11.5      Notices.  Any notice, demand or request required hereunder shall
be given in writing at the addresses set forth below by personal delivery,
or registered or certified, first class mail, return receipt requested.
Notice shall be deemed delivered (i) upon personal delivery, or (ii)
twenty-four (24) hours after deposit with a nationally-recognized overnight
courier service, or (iii) three (3) days after deposit with the U.S. postal
service, registered or certified mail, postage prepaid.  The addresses may
be changed by notice to the other party given in the same manner as provided
above.

If to Borrower and Guarantors:

Concepts Direct, Inc. 1351 South Sunset Street Longmont, CO 80501 Attn:
Frank Marcus

With Copy to:

McGuire, Woods, Battle and Boothe, LLP 8280 Greensboro Drive, Suite 900
Tysons Comer McLean, VA 22102-3892 Attention:  Michael J. Giguere, Esq.

If to Bank:

Bank One, Colorado, NA 1125 - 17th Street Denver, Colorado 80202 Attention:
Greg McCann, Vice President Western Region Real Estate With copy to:

Bank One, Arizona, NA 241 N. Central Ave. 14th Floor, Dept.  A909 Phoenix,
AZ 85004 Attention:  Western Region Loan Administration

11.6  Authority to File Notices.  Borrower irrevocably appoints, designates
and authorizes Bank as its agent (said agency being coupled with an
interest) to send to any third party any other notice or documents or take
any other action that Bank deems necessary or desirable to protect its
interest hereunder, or under the Loan Documents, and will upon request by
Bank, execute such additional documents as Bank may require to further
evidence the grant of the aforesaid right to Bank.

11.7  Time.  Time is of the essence hereof.

11.8  Amendments, etc.  No amendment, modification, termination or waiver of
any provisions of this Agreement or of any of the Loan Documents nor consent
to any departure by Borrower therefrom shall in any event be effective
unless the same shall be in writing and signed by Bank, and then such waiver
or consent shall be effective only in the specific instance and for the
specific purpose for which given.

11.9      Headings.  The article and section headings in no way define,
limit, extend or interpret the scope of this Agreement or of any particular
article or section.

11.10  Number and Gender.  When the context in which the words are used in
this Agreement indicate that such is the intent, words in the singular
number shall include the plural and vice versa.  References to any one
gender shall also include the other gender if applicable under the
circumstances.

11.11  Validity.  In the event that any provisions of this Agreement shall
be held to be invalid, the same shall not affect in any respect whatsoever
the validity of the remainder of this Agreement.

11.12    Governing Law.  This Agreement shall be governed by and construed
in accordance with the laws of the State of Colorado.

11.13 Survival of Warranties.  All agreements, representations and
warranties made herein shall survive the execution and delivery of this
Agreement and of the Loan Documents and the extension of the Loan hereunder
and continue in full force and effect until the Obligations of Borrower
hereunder evidenced by the Note have been fully paid and satisfied.

11.14  Automatic Acceleration.  Should there occur an Event of Default which
would, with the giving of notice, the passage of time, or both, constitute
an Event of Default hereunder and if a petition under the United States
Bankruptcy Code thereafter is filed by or against Borrower while such event
remains uncured and such petition is not dismissed within thirty (30) days
of filing, all obligations hereunder shall be automatically accelerated and
due and payable and the Default Rate of interest provided for in the Note
shall automatically apply as of the date of the first occurrence of the
event which would, with the giving of notice, the passage of time, or both,
constitute an Event of Default, without any notice, demand or action of any
type on the part of Bank (including any action evidencing the acceleration
or imposition of the default rate of interest).  The fact that the Bank has,
prior to the filing of the voluntary petition under the United States
Bankruptcy Code, acted in a manner which is inconsistent with the
acceleration and imposition of the default rate of interest provided for in
the Note, shall not constitute a waiver of this Section 10. 14 or estop Bank
from asserting or enforcing Bank's rights hereunder.

11.15  Attorneys Fees and Other Costs.  Borrower shall reimburse Bank for
all reasonable attorneys fees and expenses reasonably incurred by Bank in
connection with the enforcement of Bank's rights under this Agreement and
each of the other Loan Documents, including, without limitation, attorneys
fees and reimbursements for trial, appellate proceedings, out-of-court
workouts and settlements and for enforcement of rights under any state or
federal statute, including, without limitation, attorneys fees incurred in
bankruptcy and insolvency proceedings such as in connection with seeking
relief from stay in a bankruptcy proceeding or negotiating and documenting
any amendment or modification of the Loan or reviewing subsequent Loan
submission items.  Borrower shall pay all costs, including without
limitation costs of title searches, title commitments, appraisals,
environmental audits, third-party consultants, UCC searches, incurred by the
Bank in enforcing payment and performance of the Loan, exercising rights and
remedies of Bank under the Loan Documents, or reviewing Loan submission
items.  Borrower's reimbursement obligation shall be part of the
indebtedness evidenced and secured by the Loan Documents.

11.16  Severability, Titles.  If any provision of this Loan Agreement or of
any other Loan Document securing or executed in connection with this Loan
Agreement is, for any reason and to any extent, invalid or unenforceable,
then neither the remainder of the Loan Document in which such provision is
contained, or the application of the provision to other persons, entities or
circumstances, nor any other document referred to in this Loan Agreement,
shall be affected by such invalidity or unenforceability, and there shall be
deemed substituted for the invalid unenforceable provision the most similar
provision which would be valid and enforceable under applicable law.

11.17 Right to Participate or Assign Loan.  Bank shall retain the right at
all times, with or without Borrower's consent, to grant participation in or
to assign all of the Note or any portion thereof, together with the
collateral for repayment of the Note, to any other entity acceptable to
Bank, and Borrower acknowledges that Bank shall have the right to share any
and all information concerning Borrower with any prospective loan
participant or assignee.  Notwithstanding the foregoing, in the event of a
participation in or assignment of the Loan, Bank One, Colorado, NA, a
national banking association, shall retain the right to make decisions
without the consent of the participant or assignee.

11.18  Waiver of Rights.  Borrower for itself, and for all who may claim
through or under it, waives (a) the right to trial by jury on any issues
between Borrower and Bank and to any issues pertaining to the Loan Documents
and as to matters pertaining to the acts of the Bank prior to the date
hereof; and (b) any and all right to have the property and estates
comprising the Property marshalled upon any foreclosure of the lien and
security interests of the Loan Documents and agrees that any court having
jurisdiction to foreclose such lien may order the Property sold as an
entirety.

11.19  Counterparts.  This Construction Loan Agreement may be executed in
counterparts, each of which shall be deemed an original, but all of which
shall constitute the same document.

IN WITNESS WHEREOF, Borrower, Guarantors and Bank have executed this
Agreement as of the date first written above by and through their duly
authorized representatives.

BORROWER:

CONCEPTS DIRECT, INC., a Delaware corporation


By /S/ H. Franklin Marcus, Jr. Title: H. Franklin Marcus, Jr. Chief
Financial Officer

BANK:

BANK ONE, COLORADO, NA

By: /S/ Greg McCann Greg McCann, Vice President