<PAGE>   1

                                                                   EXHIBIT 10.34









                            STOCK PURCHASE AGREEMENT




                                  BY AND AMONG


                          PERFORMANCE MANAGEMENT INC.,

                            HEAFNER TIRE GROUP, INC.,
                             AS SOLE SHAREHOLDER OF
                              WINSTON TIRE COMPANY,

                              WINSTON TIRE COMPANY

                                       AND

                              CHARLES BRYANT KOUNTZ





                                DATED MAY 4, 2001





<PAGE>   2



                                TABLE OF CONTENTS
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ARTICLE I  DEFINITIONS............................................................................................1
          1.1.       Definitions..................................................................................1
          1.2.       Terms Defined Elsewhere......................................................................5

ARTICLE II  AGREEMENT OF PURCHASE AND SALE........................................................................6
          2.1.       Agreement to Sell and Purchase...............................................................6
          2.2.       Purchase Price...............................................................................6

ARTICLE III  CLOSING..............................................................................................8
          3.1.       Closing......................................................................................8
          3.2.       Deliveries by Seller at the Closing..........................................................8
          3.3.       Deliveries by Buyer at the Closing...........................................................8
          3.4.       Form of Documents and Instruments............................................................9

ARTICLE IV  REPRESENTATIONS AND WARRANTIES OF SELLER AND The COMPANY..............................................9
          4.1.       Corporate Organization of the Company........................................................9
          4.2.       Capitalization of the Company................................................................9
          4.3.       Subsidiaries.................................................................................9
          4.4.       Title.......................................................................................10
          4.5.       Due Authorization...........................................................................10
          4.6.       No Conflict.................................................................................10
          4.7.       Financial Statements........................................................................10
          4.8.       Material Contracts..........................................................................10
          4.9.       Intellectual Property.......................................................................11
          4.10.      Litigation and Proceedings..................................................................11
          4.11.      Employee Benefit Plans......................................................................11
          4.12.      Employee Matters............................................................................11
          4.13.      Legal Compliance............................................................................12
          4.14.      Environmental Matters.......................................................................12
          4.15.      Taxes.......................................................................................12
          4.16.      Licenses, Permits and Authorizations........................................................13
          4.17.      Insurance...................................................................................13
          4.18.      Brokers' Fees...............................................................................13
          4.19.      Lease Abstract..............................................................................13

ARTICLE V REPRESENTATIONS AND WARRANTIES OF BUYER................................................................13
          5.1.       Corporate Organization......................................................................13
          5.2.       Due Authorization...........................................................................13
          5.3.       No Conflict.................................................................................14
          5.4.       Litigation and Proceedings..................................................................14
</TABLE>

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          5.5.       Financial Ability...........................................................................15
          5.6.       Solvency....................................................................................15
          5.7.       Brokers' Fees...............................................................................15
          5.8.       No Additional Representations; Disclaimer Regarding Estimates and Projections...............15
          5.9.       No Knowledge of Misrepresentations or Omissions.............................................16
          5.10.      Investment Representations..................................................................16
          5.11       Qualification to Make Section 338(h)(10) Election...........................................16

ARTICLE VI  COVENANTS OF SELLER..................................................................................16
          6.1.       Conduct of Business.........................................................................16
          6.2.       Inspection..................................................................................17

ARTICLE VII  COVENANTS OF BUYER..................................................................................18
          7.1.       Governmental Authorities....................................................................18
          7.2.       Indemnification and Insurance...............................................................18
          7.3.       Inspection..................................................................................18

ARTICLE VIII JOINT COVENANTS.....................................................................................19
          8.1.       Support of Transaction......................................................................19
          8.2.       Further Assurances..........................................................................19
          8.3        Company Benefit Plans.......................................................................19
          8.4        Transfers Against Accounts Payable..........................................................19
          8.5        Non-Core Stores.............................................................................20

ARTICLE IX  TAX MATTERS..........................................................................................21
          9.1.       Tax Returns and Payments....................................................................21
          9.2.       Section 338(h)(10) Election.................................................................22

ARTICLE X  CONDITIONS TO OBLIGATION OF PARTIES TO CONSUMMATE CLOSING.............................................23
          10.1.      Conditions to Each Party's Obligations......................................................23
          10.2.      Conditions to Buyer's Obligations...........................................................23
          10.3.      Conditions to Seller's Obligations..........................................................24

ARTICLE XI  INDEMNIFICATION......................................................................................25
          11.1.      Indemnification for Certain Breaches by the Seller..........................................25
          11.2.      Indemnification Threshold, Limit and Time Limitations.......................................27
          11.3.      Losses......................................................................................27
          11.4.      Defense of Claims...........................................................................27
          11.5.      Exclusive Remedy............................................................................28
          11.6.      Limitation on Recourse......................................................................28
          11.7.      Multiple Breaches from Same Facts...........................................................28
          11.8.      Access to Information.......................................................................28

ARTICLE XII  MISCELLANEOUS.......................................................................................29
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          12.1.      Termination.................................................................................29
          12.2.      Non-Compete.................................................................................30
          12.3.      Modifications, Waiver of Rights.............................................................30
          12.4.      Notices.....................................................................................30
          12.5.      Counterparts................................................................................31
          12.6.      Expenses....................................................................................31
          12.7.      Binding Effect; Assignment..................................................................31
          12.8.      Entire Agreement............................................................................31
          12.9.      Governing Law...............................................................................31
          12.10.     Severability................................................................................32
          12.11.     Obligation of the Parties...................................................................32
          12.12.     Headings....................................................................................32
          12.13.     Dispute Resolution, Consent to Jurisdiction.................................................32
          12.14.     Disclosure Generally........................................................................32
          12.15.     Specific Performance........................................................................33
          12.16.     No Third Party Beneficiaries................................................................33
</TABLE>

                                      iii


<PAGE>   5



                                LIST OF EXHIBITS

Exhibit A                  2001 Operating Budget
Exhibit B                  [Intentionally Omitted]
Exhibit C                  Guaranty
Exhibit D                  Company Financial Statement
Exhibit E                  Lease Abstract



                                LIST OF SCHEDULES

Schedule 4.3               Subsidiaries
Schedule 4.6               Conflicts
Schedule 4.8               Material Contracts
Schedule 4.10              Litigation and Proceedings
Schedule 4.11              Employee Benefit Plans
Schedule 4.12              Employee Matters
Schedule 4.13              Legal Compliance
Schedule 4.14              Environmental Matters
Schedule 4.15              Tax Matters
Schedule 4.16              Licenses, Permits and Authorizations
Schedule 4.17              Insurance
Schedule 6.1               Conduct of Business



                                       iv

<PAGE>   6



                            STOCK PURCHASE AGREEMENT


         This STOCK PURCHASE AGREEMENT (the "Agreement") is entered into as of
May 4, 2001 by and among Performance Management Inc., a Louisiana corporation
("Buyer"), Heafner Tire Group, Inc., a Delaware corporation ("Seller") and the
sole shareholder of Winston Tire Company, a California corporation (the
"Company"), the Company and Charles Bryant Kountz.

                                    RECITALS

         WHEREAS, the Company owns and operates a retail tire business located
and currently operating in California and Arizona;

         WHEREAS, Seller owns 181,942 shares (the "Shares") of common stock, par
value $0.10 per share, of the Company (the "Common Stock"), which Shares
constitute all of the issued and outstanding capital stock of the Company; and

         WHEREAS, Buyer desires to purchase from Seller, and Seller desires to
sell to Buyer, all of the Shares, all on the terms and subject to the conditions
hereinafter set forth.


                                    AGREEMENT

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

                                    ARTICLE I
                                   DEFINITIONS

         1.1. Definitions. In this Agreement, the following terms have the
meanings specified or referred to in this Section 1.1 which shall be equally
applicable to both the singular and plural forms. Any agreement referred to
below shall mean such agreement as amended, supplemented and modified from time
to time to the extent permitted by the applicable provisions thereof and by this
Agreement.

                  "Affiliate" means, with respect to any Person, any other
Person which directly or indirectly controls, is controlled by or is under
common control with such Person.

                  "Benefit Arrangement" means any material benefit arrangement
covering any current or former employee, consultant or agent of the Company and
the beneficiaries of any of them, that is not an Employee Benefit Plan,
including, without limitation, (i) each employment agreement, (ii) each
arrangement providing for insurance coverage or workers' compensation benefits,
(iii) each incentive bonus or deferred bonus arrangement, (iv) each arrangement
providing termination allowance or payments, severance, continuation pay,
indemnification or similar benefits, (v) each deferred compensation plan and
(vi) each compensation policy and practice maintained by the Company or any
Subsidiary of the Company.


                                       1

<PAGE>   7


                  "Benefit Plan" means an Employee Benefit Plan or Benefit
Arrangement.

                  "Business" means the operation by the Company of its retail
tire business located in California at or through the stores designated as
"core" stores in the third column of the lease abstract attached hereto as
Exhibit E.

                  "Buyer" means Performance Management Inc., a Louisiana
corporation.

                  "Change in Control" means (A) any event, transaction or series
of related transactions the result of which is that Charles Bryant Kountz or his
Affiliates cease to beneficially own at least 80% of the voting power associated
with the capital stock or other voting securities of the Company or (B) any sale
of all or substantially all of the assets of the Company.

                  "Closing Date" means the date two business days following the
date on which all conditions set forth in Article X shall have been satisfied or
waived, or such other date and time agreed to by Seller and Buyer.

                  "Code" means the Internal Revenue Code of 1986, as amended.

                  "Company" means Winston Tire Company, a California
corporation.

                  "Consolidated Return" means (i) any federal consolidated
income tax return that includes the Company and (ii) any state or local returns
that are required to be filed with respect to the Company and any Affiliate on a
consolidated, combined or unitary basis and that include corporations in
addition to the Company and its directly owned Subsidiaries.

                  "Court Order" means any judgment, order, award or decree of
any foreign, federal, state, local or other court or tribunal and any award in
any arbitration proceeding.

                  "Employee Benefit Plan" means any employee benefit plan, as
defined in Section 3(3) of ERISA, that is sponsored or contributed to by the
Company or its Affiliates covering employees or former employees of the Business
or any Non-Core Store.

                  "Employee Pension Benefit Plan" means any employee pension
benefit plan, as defined in Section 3(2) of ERISA, and subject to Title IV of
ERISA.

                  "Environmental Laws" means, collectively, all applicable
foreign, U.S. federal, state or local laws, statutes, ordinances, rules,
regulations, codes or common law relating to health, safety, pollution or
protection of the environment, as in effect as of the date hereof (including,
without limitation, the Comprehensive Environmental Response, Compensation and
Liability Act, as amended, the Resource Conservation and Recovery Act, as
amended and the Clean Air Act, as amended).

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


                                       2

<PAGE>   8

                  "Governmental Body" means any foreign, federal, state, local
or other governmental authority, instrumentality or regulatory body.

                  "Governmental Order" means any judgment, order, decree,
prohibition, proclamation or other legally valid and enforceable direction or
command of, by or from any Governmental Body.

                  "Hazardous Materials" means each and every element, compound,
chemical mixture, contaminant, pollutant, material, waste or other substance
which is defined, determined or identified as hazardous or toxic under
Environmental Laws or the release of which is prohibited under any Environmental
Law. Without limiting the generality of the foregoing, the term will include (a)
"hazardous substances" as defined in the Comprehensive Environmental Response,
Compensation, and Liability Act, (b) "extremely hazardous substances" as defined
in Title III of the United States Superfund Amendments and Reauthorization Act,
each as amended, and regulations promulgated thereunder, (c) "hazardous waste"
as defined in the United States Resource Conservation and Recovery Act of 1976,
as amended, and regulations promulgated thereunder, (d) "hazardous materials" as
defined in the United States Hazardous Materials Transportation Act, as amended,
and regulations promulgated thereunder and (e) "chemical substance or mixture"
as defined in the United States Toxic Substances Control Act, as amended, and
regulations promulgated thereunder.

                  "Inter-Company Indebtedness" means any amounts owed by the
Company to Seller at or prior to the Closing.

                  "IRS" means the Internal Revenue Service of the United States.

                  "Joint Defense and Conflict Waiver Agreement" means a joint
defense and conflict waiver agreement among Seller, Buyer and the Company in
form and substance mutually acceptable to Buyer and Seller.

                  "Lease Expenses" means solely those amounts payable by the
Company with respect to the Non-Core Stores for (a) rent under leases in effect
on the Closing Date for the Non-Core Stores, (b) property tax on the Non-Core
Stores, (c) common area maintenance fees required to be paid pursuant to leases
in effect on the Closing Date for the Non-Core Stores; provided, however, that
Lease Expenses do not include any amounts paid or payable by the Company as
penalties or extraordinary fees, costs or expenses, including, without
limitation, late payment fees, charges or assessments attributable to actions or
omissions of Buyer or the Company from and after the Closing.

                  "Lease Liabilities" means any amounts actually paid by the
Company during any specified period for any Lease Expenses in excess of Lease
Revenues for that period.

                  "Lease Revenues" means any amounts paid or assets transferred
to the Company or any of its Affiliates with respect to any lease on any
Non-Core Store or any rights appurtenant to the property, including, without
limitation, (a) rents and other amounts paid in connection with any sale,
assignment, sub-lease or other transaction relating to any lease on any Non-Core
Store, and (b) any and all proceeds from the lease, sale or other conveyance of
any fixtures, machinery, equipment or other personal property located at or used
in connection with any Non-Core Store,


                                       3

<PAGE>   9

(c) any other revenue derived from the use or occupation of the property and (d)
any amounts refunded to the Company upon or after the termination or expiration
of any lease on the Non-Core Stores, including, without limitation, deposits or
other refundable items.

                  "Lease Surplus" means any amounts actually paid to the Company
during any period as Lease Revenues that are in excess of Lease Expenses for
that period.

                  "Lien" means any encumbrance, claim, charge, security
interest, mortgage, pledge, easement, conditional sale or other title retention
agreement.

                  "License Agreement" means a license agreement between Seller
and the Company in form and substance mutually acceptable to Buyer and Seller.

                  "Material Adverse Effect" means, (a) with respect to Buyer,
any circumstance, change or effect that, individually or when taken together
with all other such circumstances, changes or effects, is materially adverse to
the business or financial condition of Buyer and its Subsidiaries taken as a
whole, (b) with respect to Seller or the Company, any circumstance, change or
effect that, individually or when taken together with all other such
circumstances, changes or effects, is materially adverse to the Business taken
as a whole and (c) with respect to Charles Bryant Kountz, any circumstance,
change or effect that, individually or when taken together with all other such
circumstances, changes or effects, is materially adverse to the financial
condition of Mr. Kountz taken as a whole; provided, however, that the foregoing
definition excludes the effects of changes that are (A) generally applicable to
(i) the industries and markets in which the Business operates, (ii) the United
States economy or securities markets, or (iii) the world economy or
international securities markets or (B) generally in line with the Company's
2001 Operating Budget attached hereto as Exhibit A with respect to the Business;
provided, however, that a failure to meet such 2001 Operating Budget will not be
deemed to be a Material Adverse Effect with respect to the Company.

                  "Multiemployer Plan" means a multiemployer plan, as defined in
Section 3(37) and 4001(a)(3) of ERISA.

                  "Multiple Employer Plan" means any Employee Benefit Plan
sponsored by more than one employer, within the meaning of Sections 4063 or 4064
of ERISA or Section 413(c) of the Code.

                  "Non-Core Stores" means the 44 Company stores designated as
"non-core" stores in the third column of the lease abstract attached hereto as
Exhibit E.

                  "Person" means any individual, corporation, partnership, joint
venture, association, joint-stock company, limited liability company, trust,
unincorporated organization or Governmental Body.

                  "Post-Closing Period" means any Taxable period that begins
after the Closing Date.

                  "Pre-Closing Period" means any Taxable period that ends on or
before the Closing Date.


                                       4

<PAGE>   10

                  "Prohibited Transaction" means a transaction that is
prohibited under Section 4975 of the Code or Section 406 of ERISA and not exempt
under Section 4975 of the Code or Section 408 of ERISA, respectively.

                  "Seller" means Heafner Tire Group, Inc., a Delaware
corporation.

                  "Straddle Period" means any Taxable period that begins before
and ends after the Closing Date.

                  "Subsidiary" means, with respect to any Person, a corporation
or other entity of which 50% or more of the voting power or value of the equity
securities or equity interests is owned, directly or indirectly, by such Person.

                  "Supply Agreement" means the supply and distribution agreement
between Seller and the Company in form and substance mutually acceptable to
Buyer and Seller.

                  "Tax" means all federal, state, local and foreign income,
gross receipts, license, payroll, employment, excise, severance, stamp,
occupation, premium, windfall profits, environmental, customs, duties, capital
stock, franchise, profits, withholding, social security (or similar),
unemployment, disability, real property, personal property, sales, use,
transfer, registration, value added, alternative or add-on minimum, estimated,
or other tax of any kind whatsoever, including any interest, penalty, or
addition thereto, irrespective of whether imposed directly or indirectly, as a
successor or transferee liability, as a joint or several liability pursuant to
Section 1.1502-6 of the Treasury Regulations or comparable or similar provisions
of state, local or foreign law, or whether by reason of any tax sharing, tax
reimbursement or tax indemnification agreement, or by reason of a tax treaty.
"Taxes" and "Taxable" shall have the correlative meanings.

                  "Tax Return" means any return, declaration, report, statement,
information statement and other document required to be filed with respect to
Taxes.

         1.2. Terms Defined Elsewhere. The following is a list of additional
terms used in this Agreement and a reference to the Section hereof in which such
term is defined:

                 Term                                   Section
                 ----                                   -------

                 Aggregate Purchase Price               Section 2.2(a)
                 Claim                                  Section 11.4
                 Claim Notice                           Section 11.4
                 Closing                                Section 3.1
                 Closing Inventory Statement            Section 2.2(c)
                 Collins Claim                          Section 11.1(c)
                 Common Stock                           Recitals
                 Company Financial Statement            Section 4.7
                 Deposit                                Section 2.2(a)
                 GAAP                                   Section 2.2(c)(i)
                 Governmental Permits                   Section 4.16
                 Guaranty                               Section 2.2(b)

                                       5

<PAGE>   11

                 Term                                   Section
                 ----                                   -------

                 Indemnified Litigation                 Section 11.1(c)
                 Independent Accountant                 Section 2.2(c)
                 Inspection Rights                      Section 11.1(d)(iv)
                 Intellectual Property                  Section 4.9
                 Losses                                 Section 11.1(a)
                 Material Contracts                     Section 4.8
                 Monthly Report                         Section 11.1(d)(ii)
                 Note                                   Section 2.2(b)
                 Pina Claim                             Section 11.1(c)
                 Securities Act                         Section 5.10
                 Section 338(h)(10) Election            Section 9.2(a)
                 Shares                                 Recitals
                 Solis Claim                            Section 11.1(c)
                 Tax Records                            Section 9.1(d)


                                   ARTICLE II
                         AGREEMENT OF PURCHASE AND SALE

         2.1. Agreement to Sell and Purchase. Upon the terms and subject to the
conditions set forth in this Agreement, Seller agrees to sell, assign, transfer,
convey and deliver to Buyer free and clear of all Liens, and Buyer agrees to
purchase, acquire and accept from Seller, the Shares.

         2.2. Purchase Price.

                  (a) Generally. Upon the terms and subject to the conditions
set forth herein, in consideration for the purchase of the Shares, Buyer shall
pay to Seller an aggregate purchase price of $11,300,000.00, subject to
adjustment as set forth in Section 2.2(c) below (as so adjusted, the "Aggregate
Purchase Price"). Seller acknowledges receipt as of April 19, 2001 of a
$250,000.00 good faith deposit from Buyer (the "Deposit"), which such Deposit
shall be applied on the Closing Date to the amount due to Seller from Buyer
pursuant to Section 2.2. Seller agrees to return the Deposit to Buyer within
three business days upon termination of this Agreement by either Buyer or Seller
pursuant to Section 12.1(a)(i), (ii), (iii) and (iv). The Deposit shall be
retained by Seller in the case of a termination of this Agreement by Seller
pursuant to Section 12.1(a)(v).

                  (b) Payment. On the Closing Date, Buyer will pay to Seller an
amount equal to $8,500,000.00 in the form of the Deposit and the balance by wire
transfer of immediately available funds to one or more accounts which have been
specified by Seller at least one day before the Closing and Buyer will issue to
Seller a promissory note in the amount of $2,800,000.00 due and payable 12
months after the Closing Date in form and substance mutually satisfactory to
Buyer and Seller (the "Note"). The Note shall be personally guaranteed by
Charles Bryant Kountz pursuant to a personal guaranty in the form attached
hereto as Exhibit C (the "Guaranty").


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<PAGE>   12

                  (c) Post-Closing Purchase Price Adjustment.

                           (i) Within 45 days after the Closing Date, Seller
         shall cause Arthur Andersen LLC to audit the tire inventory of the
         Company as of the Closing Date (the "Closing Inventory Statement"), in
         accordance with United States generally accepted accounting principles
         ("GAAP") consistently applied with such principles used in connection
         with the Company's financial statements for the fiscal year ended
         December 30, 2000. The cost of such audit shall be borne equally by
         Seller and Buyer.

                           (ii) Seller and Buyer shall cooperate with one
         another and with Arthur Andersen LLC in the delivery of the Closing
         Inventory Statement. Each of Seller, Buyer and their respective
         representatives shall have the right to review the others' work papers
         or records of the Company used or prepared in connection with the
         preparation of such Closing Inventory Statement, and shall, if
         requested, make available such work papers or records and direct Arthur
         Andersen LLC and any other representatives to allow Seller, Buyer, or
         their respective representatives to review any and all work papers or
         records of Arthur Andersen LLC or such other representatives, that were
         used in connection with the preparation of such Closing Inventory
         Statement and which are not proprietary work papers or records of
         Arthur Anderson LLC or such other representatives, as the case may be.
         In addition to and not in limitation of the foregoing, from and after
         the Closing Seller shall be entitled to have its representatives
         observe and participate in any physical tire inventory undertaken by
         any Person for the purpose of producing the Closing Inventory Statement
         or resolving any dispute associated therewith.

                           (iii) If the total value of the Company's tire
         inventory, net of reserves, and as determined in accordance with GAAP,
         as of the Closing Date, as set forth on the Closing Inventory
         Statement, is more than $7,000,000.00, then the Aggregate Purchase
         Price will be adjusted up, dollar for dollar, to reflect such excess.
         If the total value of the Company's tire inventory, net of reserves,
         and as determined in accordance with GAAP, as of the Closing Date, as
         set forth on the Closing Inventory Statement, is less than
         $7,000,000.00, then the Aggregate Purchase Price will be adjusted down,
         dollar for dollar, to reflect such shortfall.

                           (iv) If the Aggregate Purchase Price, as adjusted
         pursuant to clause (iii) above, is more than $11,300,000.00, then
         within 30 days after the later of (X) the date of delivery of the
         Closing Inventory Statement and (Y) the date on which any dispute
         referred to in clause (v) is resolved, Buyer shall pay in cash the
         difference between such Aggregate Purchase Price and $11,300,000.00 to
         Seller. If the Aggregate Purchase Price, as adjusted pursuant to clause
         (iii) above, is less than $11,300,000.00, then within 30 days after the
         later of (X) the date of delivery of the Closing Inventory Statement
         and (Y) the date on which any dispute referred to in clause (v) is
         resolved, the principal amount of the Note shall be reduced by the
         difference between such adjusted Aggregate Purchase Price and
         $11,300,000.00.

                           (v) Each of Seller and Buyer shall have the right to
         dispute any amounts shown on the Closing Inventory Statement by giving
         written notice to the other within 15 days after receipt of such
         statement, which notice shall specify in reasonable


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<PAGE>   13

         detail the nature and extent of such disagreement. If Seller and Buyer
         have not resolved the dispute within 15 days after delivery of notice
         of the dispute, the dispute shall promptly be submitted to another "big
         five" accounting firm (the "Independent Accountant") reasonably
         acceptable to Seller and Buyer. The Independent Accountant promptly
         shall commence its analysis of the Closing Inventory Statement and the
         facts and supporting documents from which the Closing Inventory
         Statement was derived and shall deliver a written report of its
         conclusions to Seller and Buyer as promptly as practicable, but in no
         event later than 30 days after the date the dispute was submitted to
         the Independent Accountant. The decision of the Independent Accountant
         shall be binding on the parties hereto. The cost of the Independent
         Accountant shall be shared equally by Seller and Buyer.

                                   ARTICLE III
                                     CLOSING

         3.1. Closing. The closing of the transactions contemplated herein (the
"Closing") shall commence at 10:00 a.m. Pacific Time on the Closing Date at the
offices of Gibson, Dunn & Crutcher, LLP, 333 South Grand Avenue, Los Angeles, CA
90071, unless the parties hereto otherwise mutually agree.

         3.2. Deliveries by Seller at the Closing. At the Closing, Seller shall
issue and deliver to Buyer:

                  (a) certificates evidencing the Shares, duly endorsed for
transfer to Buyer;

                  (b) a counterpart of a cross-receipt acknowledging receipt of
$8,500,000.00 of the Aggregate Purchase Price;

                  (c) the certificate and other documents described in Section
10.2;

                  (d) the License Agreement;

                  (e) the Supply Agreement;

                  (f) this Agreement (unless previously executed and delivered);
and

                  (g) the Joint Defense and Conflict Waiver Agreement.

         3.3. Deliveries by Buyer at the Closing. At the Closing, Buyer shall
deliver to Seller:

                  (a) $8,500,000.00 in same day funds as provided in Section
2.2;

                  (b) a counterpart of a cross-receipt acknowledging receipt of
the Shares;

                  (c) the certificate and other documents described in Section
10.3;

                  (d) the Guaranty;


                                       8

<PAGE>   14

                  (e) the License Agreement;

                  (f) the Supply Agreement;

                  (g) the Note;

                  (h) this Agreement (unless previously executed and delivered);
and

                  (i) the Joint Defense and Conflict Waiver Agreement.

         3.4. Form of Documents and Instruments. All of the documents and
instruments delivered at the Closing shall be in form and substance, and shall
be executed and delivered in a manner, reasonably satisfactory to the parties'
respective counsel.

                                   ARTICLE IV
                         REPRESENTATIONS AND WARRANTIES
                            OF SELLER AND The COMPANY

         Seller represents and warrants to Buyer, as of the date of this
Agreement and as of the Closing, as follows:

         4.1. Corporate Organization of the Company. The Company is duly
incorporated and is validly existing as a corporation in good standing under the
laws of the State of California, and has all requisite corporate power and
authority to own, lease and operate its properties and to conduct its business
as it is now being conducted. The Company is duly licensed or qualified and in
good standing as a foreign corporation in each jurisdiction in which the
ownership of its property or the nature of the business conducted by it requires
it to be so licensed or qualified, except where the failure to be so licensed or
qualified would not have a Material Adverse Effect on the Company.

         4.2. Capitalization of the Company.

                  (a) The authorized capital stock of the Company consists of
1,000,000 shares of Common Stock, of which 181,942 shares of Common Stock are
issued and outstanding and constitute the Shares. The Shares have been duly
authorized and validly issued and are fully paid, non-assessable and free of
preemptive rights.

                  (b) The Company has not granted any outstanding options,
warrants, rights or other securities convertible into or exchangeable or
exercisable for shares of Common Stock or any other commitments or agreements
providing for the issuance of additional shares, the sale of treasury shares, or
for the repurchase or redemption of shares of the Company's capital stock. The
Company is not a party to any agreement which obligates the Company to issue,
purchase, redeem or otherwise acquire any of its capital stock.

         4.3. Subsidiaries. Except as disclosed on Schedule 4.3, the Company has
no Subsidiaries.


                                       9

<PAGE>   15

         4.4. Title. Seller is the sole owner of record and beneficial owner of
the Shares. The Shares are free and clear of all Liens. Seller has the full and
unrestricted right, power and authority to sell and transfer such Shares to
Buyer. Upon delivery of the Shares to Buyer and payment by Buyer to Seller of
the consideration therefor, Buyer will acquire good and marketable title to and
complete ownership of such Shares, free and clear of all Liens.

         4.5. Due Authorization. Seller has all requisite corporate power and
authority to execute and deliver this Agreement and to perform all obligations
to be performed by it hereunder. The execution and delivery of this Agreement
and the consummation of the transactions contemplated hereby have been duly and
validly authorized and approved by the board of directors of Seller and no other
corporate action on its part is necessary to authorize this Agreement and the
consummation by Seller of the transactions contemplated hereby. This Agreement
has been duly and validly executed and delivered by Seller, and constitutes a
legal, valid and binding obligation of Seller, enforceable against Seller in
accordance with its terms, subject to applicable bankruptcy, insolvency,
fraudulent conveyance, reorganization, moratorium and similar laws affecting
creditors' rights generally and subject, as to enforceability, to general
principles of equity.

         4.6. No Conflict. Except as disclosed on Schedule 4.6, the execution
and delivery of this Agreement by Seller and the consummation of the
transactions contemplated hereby do not and will not: (a) violate any provision
of, or result in the breach of any applicable law, rule or regulation of any
Governmental Body, (b) contravene or conflict with the Certificate or Articles
of Incorporation, Bylaws or other organizational documents, as applicable, of
Seller or the Company, (c) violate any provision of, or result in the breach of
any agreement, indenture or other instrument to which Seller or the Company is a
party or by which Seller or the Company is bound, (d) violate any provision of,
or result in the breach of, any Court Order applicable to Seller or the Company
or (e) result in the creation of any Lien upon any of the properties or assets
of the Company; in each case, except for any conflict, violation, breach or
other event the occurrence or existence of which would not, individually or in
the aggregate, be reasonably likely to result in a Material Adverse Effect on
the Company or materially and adversely effect the ability of Seller to enter
into and perform its obligations under this Agreement.

         4.7. Financial Statements. The unaudited financial statement of the
Company dated December 30, 2000 attached hereto as Exhibit D (the "Company
Financial Statement") (a) is correct and complete in all material respects and
fairly presents the financial position of the Company as at the date thereof,
and (b) has been prepared in conformity with GAAP applied on a basis consistent
with prior periods.

         4.8. Material Contracts. Schedule 4.8 discloses all material contracts
described in clauses (a) through and including (f) below to which the Company is
a party ("Material Contracts"). True, correct and complete copies of such
Material Contracts have been made available to Buyer.

                  (a) Purchase and supply agreements which obligate the Company
to pay an amount in excess of $100,000.00 in any twelve-month period beginning
after December 30, 2000;


                                       10

<PAGE>   16

                  (b) Each note, debenture, other evidence of indebtedness,
guaranty, loan, credit or financing agreement or instrument or other contract
for money borrowed, including any agreement or commitment for future loans,
credit or financing entered into by the Company;

                  (c) Each lease, rental or occupancy agreement (other than
operating store leases, rental or occupancy agreements), license, installment
and conditional sale agreement, and other contract affecting the ownership of,
leasing of, title to, use of, or any leasehold or other interest in, any real or
personal property, in each case involving aggregate payments in excess of
$100,000.00;

                  (d) Each material licensing agreement or other agreement with
respect to patents, trademarks, copyrights, or other Intellectual Property of
the Company;

                  (e) Each joint venture agreement, partnership agreement or
limited liability company agreement; and

                  (f) Each agreement that commits the Company to make capital
expenditures after the date hereof in an amount in excess of $100,000.00.

         4.9. Intellectual Property. Other than as set forth on Schedule 4.9,
the Company and Seller do not hereby transfer to Buyer (and the parties
acknowledge and agree that the Company does not own or retain after the Closing)
any rights to any material patents, registered trademarks, service marks, trade
names, domain names, registered copyrights or mask works, or applications for
any of the foregoing (collectively, "Intellectual Property").

         4.10. Litigation and Proceedings. Except as disclosed on Schedule 4.10,
there are no lawsuits, actions, claims or other proceedings at law or in equity
before any court or Governmental Body pending or, to the knowledge of Seller,
threatened against the Company that are reasonably likely to have a Material
Adverse Effect on the Company.

         4.11. Employee Benefit Plans. Schedule 4.11 discloses all Benefit Plans
of the Company. With respect to each such Benefit Plan, the Company has made
available to Buyer copies of (i) all governing instruments and related
agreements, including, a written description of any Benefit Plan not set forth
in writing, (ii) the two most recently filed Federal Form 5500 series and
accountant's opinion, if applicable, for each Employee Benefit Plan, (iii) the
most recent IRS determination letter obtained with respect to each Benefit Plan
intended to be qualified under Section 401(a) of the Code or exempt under
Section 501(a) of the Code and (iv) the most recently prepared financial
statements of with respect to each Benefit Plan.

         4.12. Employee Matters. The Company is not party to any collective
bargaining agreements. There is no labor organizing activity pending or, to the
Company's knowledge, threatened with respect to the Company. Schedule 4.12
discloses all written employment or severance agreements to which the Company is
a party with respect to any employee or former employee whose compensation or
benefits during the year ended December 31, 2000 exceeded $100,000.00 and which
may not be terminated at will, or by giving notice of 90 days or less, without
cost or penalty. Except as set forth on Schedule 4.12, no employee of the
Company has been granted the right to continued employment by the Company or to
any material compensation following termination of employment with the Company.
Except as set forth on


                                       11

<PAGE>   17

Schedule 4.12, the Company is not aware that any officer or key employee intends
to terminate their employment with the Company. Seller has made available to
Buyer true, correct and complete copies of each such agreement, as amended to
date.

         4.13. Legal Compliance. Except with respect to (i) matters disclosed on
Schedule 4.13, and (ii) compliance with Environmental Laws (as to which certain
representations and warranties are made pursuant to Section 4.14), the Company
is in material compliance with all laws (including rules and regulations
thereunder) of federal, state, local and foreign governments (and all agencies
thereof) applicable thereto, except where such instances of noncompliance are
not reasonably likely to have a Material Adverse Effect on the Company.

         4.14. Environmental Matters. Except as disclosed on Schedule 4.14, to
the knowledge of Seller, (i) the Company is in compliance with all Environmental
Laws, except where any such instance of non-compliance would not be reasonably
likely to have a Material Adverse Effect on the Company and (ii) the Company has
no liability under any Environmental Law which would have a Material Adverse
Effect on the Company. Except as disclosed on Schedule 4.14, the Company has not
received written notice of, and to the knowledge of Seller, is not the subject
of, any actions, causes of action, claims, investigations, demands or notices by
any Person alleging liability under or non-compliance with any Environmental Law
which would, individually or in the aggregate have a Material Adverse Effect on
the Company.

         4.15. Taxes. Except as set forth on Schedule 4.15:

                  (a) All material Tax Returns required to be filed by or on
behalf of the Company have been duly and timely filed with the appropriate
taxing authorities (after giving effect to any valid extensions of time in which
to make such filings) and all amounts shown on such Tax Returns (including
interest and penalties) as due from the Company have been fully and timely paid.

                  (b) The Company has complied in all material respects with all
applicable Laws relating to the withholding of Taxes and has duly and timely
withheld from employee salaries, wages and other compensation and have paid over
to the appropriate taxing authorities all material amounts required to be so
withheld and paid over for all periods under all applicable Laws.

                  (c) All material deficiencies asserted or assessments made as
a result of any examinations by any taxing authority of Tax Returns of or
covering the Company have been fully paid and there are no other audits or
investigations relating to any Tax Returns by any taxing authority in progress,
nor have Seller or the Company received any written notice from any taxing
authority that it intends to conduct such an audit or investigation. No
extensions or waivers of statutes of limitations with respect to the Company's
Tax Returns has been given by or requested from the Company. No claim has been
made by any taxing authority in any jurisdiction where the Company does not file
Tax Returns that it is or may be subject to Tax by that jurisdiction.

                  (d) Seller is not a "foreign person" within the meaning of
Section 1445 of the Code.


                                       12


<PAGE>   18

                  (e) The Company joins in the filing of a federal Consolidated
Return with Seller, and the Company has not been a member of an affiliated group
of corporations filing Consolidated Returns for any taxable period, other than a
group the common parent of which is Seller.

                  (f) There are no Liens for Taxes (other than for current taxes
not yet due and payable) upon the assets of the Company.

         4.16. Licenses, Permits and Authorizations. Except as disclosed on
Schedule 4.16 and except for any non-compliance the existence of which would
not, individually or in the aggregate, be reasonably likely to result in a
Material Adverse Effect on the Company, to Seller's knowledge, the Company has
not violated or infringed, and is not in violation or infringement of, any
applicable material license, franchise and other permit of, or with, any
Governmental Body, whether foreign, federal, state or local, which are held by
the Company ("Governmental Permits").

         4.17. Insurance. Schedule 4.17 sets forth a true and complete list of
all material insurance policies in force with respect to the Company. True,
correct and complete copies of such insurance policies have been made available
to Buyer.

         4.18. Brokers' Fees. No broker, finder, investment banker or other
Person is entitled to any brokerage fee, finders' fee or other commission in
connection with the transactions contemplated by this Agreement based upon
arrangements made by Seller or any of its Affiliates, other than Houlihan Lokey
Howard & Zukin, whose fees and expenses will be paid by Seller in accordance
with Seller's agreement with such firm.

         4.19 Lease Abstract. To Seller's knowledge, the lease abstract dated as
of May 3, 2001 and attached hereto as Exhibit E is true, complete and correct in
all material respects.

                                    ARTICLE V
                     REPRESENTATIONS AND WARRANTIES OF BUYER

         Buyer represents and warrants to Seller, as of the date of this
Agreement and as of the Closing, as follows:

         5.1. Corporate Organization. Buyer is duly incorporated and is validly
existing as a corporation in good standing under the laws of the State of
Louisiana and has all requisite corporate power and authority to own, lease and
operate its properties and to conduct its business as it is now being conducted.
Buyer is duly licensed or qualified and in good standing as a foreign
corporation in each jurisdiction in which the ownership of its property or the
nature of the business conducted by it requires it to be so licensed or
qualified, except where the failure to be so licensed or qualified would not
have a Material Adverse Effect on Buyer or would not affect the ability of Buyer
to enter into this Agreement or consummate the transactions contemplated hereby.

         5.2. Due Authorization. Buyer has all requisite corporate power and
authority to execute and deliver this Agreement and each other agreement or
instrument to be executed by Buyer and delivered by Buyer at the Closing
pursuant to Section 3.3 and to perform all


                                       13

<PAGE>   19

obligations to be performed by it hereunder and thereunder. The execution and
delivery of this Agreement, such other agreements and instruments and the
consummation of the transactions contemplated hereby have been duly and validly
authorized and approved by the board of directors of Buyer and no other
corporate action on its part is necessary to authorize this Agreement, such
other agreements and instruments or the consummation by Buyer of the
transactions contemplated hereby. All corporate action on the part of Buyer, its
officers, directors and stockholders necessary for the authorization, execution
and delivery of, and the performance of all obligations of Buyer under, the Note
has been taken or will be taken prior to Closing. This Agreement, the other
documents and instruments delivered pursuant to Section 3.3 (including, but not
limited to, the Note) have been duly and validly executed and delivered by Buyer
and constitute legal, valid and binding obligations of Buyer, enforceable
against Buyer in accordance with their respective terms, subject to applicable
bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and
similar laws affecting creditors' rights generally and subject, as to
enforceability, to general principles of equity. The Guaranty has been duly and
validly executed by Mr. Charles Bryant Kountz and constitutes the legal, valid
and binding obligations of Mr. Kountz, enforceable against Mr. Kountz in
accordance with its terms, subject to applicable bankruptcy, insolvency,
fraudulent conveyance, reorganization, moratorium and similar laws affecting
creditors' rights generally and subject, as to enforceability, to general
principles of equity.

         5.3. No Conflict. The execution and delivery of this Agreement and the
Note by Buyer and the consummation of the transactions contemplated hereby and
thereby do not and will not: (a) violate any provision of, or result in the
breach of any applicable law, rule or regulation of any Governmental Body, (b)
contravene or conflict with the organizational documents of Buyer, (c) violate
any provision of, or result in the breach of any agreement, indenture or other
instrument to which Buyer is a party or by which Buyer is bound, (d) violate any
provision of, or result in the breach of any Court Order applicable to Buyer or
(e) result in the creation of any Lien upon any of the properties or assets of
Buyer; except for any conflict, violation, breach or other event the occurrence
or existence of which would not, individually or in the aggregate, be reasonably
likely to result in a Material Adverse Effect on Buyer or materially and
adversely effect the ability of Buyer to enter into and perform its obligations
under this Agreement. The execution and delivery of the Guaranty by Mr. Kountz
does not and will not: (i) violate any provision of, or result in the breach of
any applicable law, rule or regulation of any Governmental Body, (ii) violate
any provision of, or result in the breach of any agreement, indenture or other
instrument to which Mr. Kountz is a party or by which Mr. Kountz is bound, (iii)
violate any provision of, or result in the breach of any Court Order applicable
to Mr. Kountz or (iv) result in the creation of any Lien upon any of the
properties or assets of Mr. Kountz; except for any conflict, violation, breach
or other event the occurrence or existence of which would not, individually or
in the aggregate, be reasonably likely to result in a Material Adverse Effect on
Mr. Kountz or materially and adversely effect the ability of Mr. Kountz to enter
into and perform its obligations under the Guaranty.

         5.4. Litigation and Proceedings. There are no lawsuits, actions, claims
or other proceedings at law or in equity or investigations, before or by any
court or Governmental Body or before any arbitrator pending or, to the knowledge
of Buyer, threatened against Buyer that are reasonably likely to have a Material
Adverse Effect on Buyer or could reasonably be expected to adversely affect the
ability of Buyer to enter into and perform its obligations under this


                                       14

<PAGE>   20

Agreement and the Note. There is no Court Order or any open injunction binding
upon Buyer which is reasonably likely to result in a Material Adverse Effect on
Buyer or could reasonably be expected to materially and adversely affect the
ability of Buyer to enter into and perform its obligations under this Agreement
and the Note.

         5.5. Financial Ability. Buyer and its Affiliates have the financial
resources necessary to consummate the transactions contemplated by this
Agreement and to perform their respective obligations under the Note and the
Guaranty, including, without limitation, the ability to pay the Aggregate
Purchase Price. Buyer possesses the financial resources and necessary expertise
to enable it to maintain and develop the Business.

         5.6. Solvency. Immediately after giving effect to the transactions
contemplated by this Agreement, Buyer and the Company will be able to pay their
debts as they become due and will own property which has a fair saleable value
greater than the amounts required to pay their respective debts (including a
reasonable estimate of the amount of all contingent liabilities). Immediately
after giving effect to the transactions contemplated by this Agreement, Buyer
and the Company will have adequate capital to carry on their respective
businesses. No transfer of property is being made and no obligation is being
incurred in connection with the transactions contemplated by this Agreement with
the intent to hinder, delay or defraud either present or future creditors of
Buyer or the Company.

         5.7. Brokers' Fees. No broker, finder, investment banker or other
Person is entitled to any brokerage fee, finder's fee or other commission in
connection with the transactions contemplated by this Agreement based upon
arrangements made by Buyer or any of its Affiliates.

         5.8. No Additional Representations; Disclaimer Regarding Estimates and
              Projections.

                  (a) Buyer acknowledges that none of Seller or the Company,
their Affiliates or any other Person acting on behalf of Seller or the Company
(i) has made any representation or warranty, express or implied, including any
implied representation or warranty as to the condition, merchantability,
suitability or fitness for a particular purpose of any of the assets used in the
Business or any Non-Core Store or held by the Company or (ii) has made any
representation or warranty, express or implied, as to the accuracy or
completeness of any information regarding the Business or any Non-Core Store,
Seller, the Company or any of their Affiliates, in each case except as expressly
set forth in this Agreement or as and to the extent required by this Agreement
to be disclosed on the Schedules hereto. Buyer further agrees that none of
Seller or the Company, or any other Person acting on behalf of Seller or the
Company, will have or be subject to any liability, except as specifically set
forth in this Agreement, to Buyer or any other Person resulting from the
distribution to Buyer, for Buyer's use, of any such information, including any
information memorandum distributed by Houlihan Lokey Howard & Zukin, and any
information, document, or material made available to Buyer in certain "data
rooms," management presentations or any other form in expectation of the
transactions contemplated by this Agreement.


                                       15

<PAGE>   21

                  (b) In connection with Buyer's investigation of the Company,
Buyer has received certain projections, including projected statements of
operating revenues and income from operations of the Business and the Company
for the fiscal years ending December 31, 1999, December 31, 2000 and December
31, 2001 and certain business plan information for such fiscal year and
succeeding fiscal years. Buyer acknowledges that there are uncertainties
inherent in attempting to make such estimates, projections and other forecasts
and plans, that Buyer is familiar with such uncertainties and that Buyer is
taking full responsibility for making its own evaluation of the adequacy and
accuracy of all estimates, projections and other forecasts and plans so
furnished to it (including the reasonableness of the assumptions underlying such
estimates, projections and forecasts). Accordingly, neither Seller nor the
Company makes any representation or warranty with respect to such estimates,
projections and other forecasts and plans (including the reasonableness of the
assumptions underlying such estimates, projections and forecasts).

         5.9 No Knowledge of Misrepresentations or Omissions. Buyer has no
actual knowledge that the representations and warranties of Seller contained in
this Agreement and disclosed on the Schedules attached hereto are not true and
correct in all material respects, and Buyer has no actual knowledge of any
material errors in, or material omissions from, the Schedules to this Agreement.

         5.10 Investment Representations. Buyer is acquiring the Shares for
investment solely for its own account and not with a view to, or for resale in
connection with, any distribution thereof and is aware that Seller is relying
upon the bona fide nature of the investment intent of Buyer as expressed herein.
Buyer further understands that the Shares have not been registered under the
Securities Act of 1933, as amended (the "Securities Act") and have not been
qualified under applicable state securities laws and that any subsequent
disposition thereof must be registered under the Securities Act and qualified
under applicable state securities laws or be exempt from such registration or
qualification. Buyer is aware that no market may exist for the resale of the
Shares. Buyer has the ability to bear the economic risks of investment in the
Shares including a complete loss of the investment.

         5.11 Qualification to Make Section 338(h)(10) Election. Buyer is
qualified to make the Section 338(h)(10) Election.

                                   ARTICLE VI
                               COVENANTS OF SELLER

         6.1. Conduct of Business. From the date hereof through the Closing,
Seller shall cause the Company to operate the Business in the ordinary course
and substantially in accordance with past practice and will use its reasonable
efforts not to take any action inconsistent with this Agreement. Without
limiting the generality of the foregoing, unless consented to by Buyer in
writing (which consent shall not be unreasonably withheld), the Company shall
not:

                  (a) change or amend the Articles of Incorporation, Bylaws or
other organizational documents of the Company except as otherwise required by
law;


                                       16

<PAGE>   22

                  (b) sell, assign, transfer, convey, lease or otherwise dispose
of any material assets or properties except in the ordinary course of business,
provided, however, that (i) Seller may cause the Company to sell, transfer,
convey, lease or dispose of all or substantially all of the accounts receivable
and Intellectual Property of the Company to Seller to be applied against the
Inter-Company Indebtedness (and Buyer hereby agrees, acknowledges and consents
to the foregoing transfers and such application against the Inter-Company
Indebtedness) and (ii) Seller may continue its normal cash management procedures
until the Closing;

                  (c) (i) except as disclosed on Schedule 6.1(c), or otherwise
required by law or consistent with past practices or existing agreements, take
any action with respect to the grant of any severance or termination pay (other
than pursuant to policies or agreements of the Company in effect on the date
hereof) which will become due and payable on or after the Closing, (ii) make any
change in the key management structure of the Company including, without
limitation, the hiring of additional officers or the termination of existing
officers, other than in the ordinary course of business, or (iii) except in the
ordinary course of business, adopt, enter into or amend any employee benefit
plan;

                  (d) acquire by merger or consolidation with, or merge or
consolidate with, or purchase substantially all of the assets of, or otherwise
acquire any material assets or the business of any corporation, partnership,
association or other business organization or division thereof;

                  (e) make any material loans or advances to any Person, except
for expenses incurred in the ordinary course of business;

                  (f) make any material income tax election;

                  (g) grant any increase in the compensation of employees of the
Company, except for increases in the compensation of employees which do not in
the aggregate exceed $100,000.00;

                  (h) enter into any commitment to make any capital expenditure
in excess of $50,000.00; or

                  (i) enter into any agreement, or otherwise become obligated,
to do any action prohibited hereunder.

         6.2. Inspection. Subject to confidentiality obligations and similar
restrictions that may be applicable to information furnished to the Company by
third parties that may be in the Company's possession from time to time, Seller
shall cause the Company to allow Buyer and its accountants, counsel and other
representatives reasonable access, during normal business hours, to all of the
properties, books, contracts, commitments, tax returns and records of the
Business and appropriate officers and employees of the Company, and shall
furnish such representatives with all financial and operating data and other
information concerning the affairs of the Company as they may reasonably
request; provided, however, that nothing herein shall require the Company or its
Affiliates to disclose any information to Buyer if such disclosure (a) would
cause significant competitive harm to such disclosing party or its Affiliates if
the transactions contemplated by this Agreement are not consummated or (b) would
be in violation of applicable laws or regulations of any Governmental Body.


                                       17

<PAGE>   23

                                   ARTICLE VII
                               COVENANTS OF BUYER

         7.1. Governmental Authorities. Buyer shall exercise commercially
reasonable efforts to prevent the entry of any Governmental Order which would
prohibit, make unlawful or delay the consummation of the transactions
contemplated by this Agreement, in any claim, action, suit, audit, assessment,
arbitration or inquiry, or any proceeding or investigation by or before any
Governmental Body, in each case brought by any Person.

         7.2. Indemnification and Insurance.

                  (a) From and after the Closing, Buyer agrees that it will
cause the Company to, and the Company agrees that it will, continue to indemnify
and hold harmless each present and former director and officer of the Company
against any costs or expenses (including reasonable attorneys' fees), judgments,
fines, losses, claims, damages or liabilities incurred in connection with any
claim, action, suit, proceeding or investigation, whether civil, criminal,
administrative or investigative, arising out of or pertaining to matters
existing or occurring on or prior to the Closing, whether asserted or claimed
prior to, on or after the Closing, to the fullest extent that the Company would
have been permitted under California law and its Articles of Incorporation,
Bylaws or other organizational documents in effect on the date hereof to
indemnify such person (including the advancing of expenses as incurred to the
fullest extent permitted under applicable law); provided, however, that the
person to whom such expenses are advanced must provide undertaking to the
Company (as appropriate) to repay such advances if it is ultimately determined
by a court of competent jurisdiction (which determination shall have become
final) that such person is not entitled to indemnification.

                  (b) Buyer will not take, and will not fail to take, any action
that could cause or result in the termination of any directors and officers
liability insurance policy in effect as of the Closing Date providing coverage
with respect to any individual who at any time served or serves as a director or
officer of the Company prior to the stated maturity of such policy.

         7.3. Inspection. Subject to confidentiality obligations and similar
restrictions that may be applicable to information furnished to the Company by
third parties that may be in the Company's possession from time to time, from
and after the Closing Date, Buyer shall provide, Buyer shall cause the Company
to provide, and the Company hereby agrees to provide, Seller and its
accountants, counsel and other representatives, reasonable access during normal
business hours, to all of the properties, books, contracts, commitments, tax
returns and records of the Business and the Non-Core Stores and appropriate
officers and employees of the Company, and shall furnish Seller and such
accountants, counsel and other representatives with all financial and operating
data and other information concerning the pre-Closing operations of the Company
and the Non-Core Stores as they may reasonably request.


                                       18

<PAGE>   24

                                  ARTICLE VIII
                                 JOINT COVENANTS

         8.1. Support of Transaction. Seller and Buyer shall each:

                  (a) use their respective reasonable best efforts to assemble,
prepare and file any information (and, as needed, to amend and supplement such
information) as may be reasonably necessary to obtain as promptly as practicable
all governmental and regulatory consents required to be obtained in connection
with the transactions contemplated hereby;

                  (b) use their respective reasonable best efforts to obtain all
material consents and approvals of third parties (including customers) that any
of Buyer, Seller or their respective Affiliates are required to obtain in order
to consummate the transactions contemplated hereby and in the documents and
instruments executed and delivered in connection with this Agreement;

                  (c) take such other action as may reasonably be necessary or
as another party may reasonably request to satisfy the conditions of Article X
or otherwise to comply with this Agreement; and

                  (d) provide the other party and such other party's employees,
officers, accountants, lawyers, financial advisors and other representatives
with access to its personnel, properties, business and records under all
reasonable circumstances to the extent reasonably required for any legitimate
business purpose.

         8.2. Further Assurances. From time to time, as and when requested by
any party hereto and at such requesting party's expense, any other party shall
execute and deliver, or cause to be executed and delivered, all such documents
and instruments and shall take, or cause to be taken, all such further or other
actions as the requesting party may reasonably deem necessary or desirable to
evidence and effectuate the transactions contemplated by this Agreement. Without
limiting the foregoing, as and when requested by Seller, Buyer shall, and shall
cause the Company to, and the Company hereby agrees to, assist Seller in the
collection of the accounts receivable of the Company transferred to Seller on or
before the Closing pursuant to Section 8.4.

         8.3 Company Benefit Plans. The parties understand and agree that the
Company maintains certain Benefit Plans on behalf of its own employees and will
continue to maintain such plans after the Closing, subject to the Company's or
Buyer's right to cause the modification or termination of any such plan
consistent with its terms and subject to compliance with applicable law.

         8.4 Transfers Against Inter-Company Indebtedness. Without limiting any
of Seller's rights pursuant to Section 6.1(b) and in partial payment of the
Inter-Company Indebtedness, the parties acknowledge and agree that on or prior
to the Closing Date (i) the Company shall transfer, assign and convey any and
all Intellectual Property rights of the Company to Seller that are not
specifically set forth on Schedule 4.9 and (ii) the Company shall transfer,
assign and convey any and all accounts receivable of the Company to Seller, in
each case to be applied as partial payment against the Inter-Company
Indebtedness. Each of Buyer and Charles Bryant Kountz, in his individual
capacity, hereby covenants and agrees to execute and deliver any and all
documents and instruments, and to take all such further actions, as Seller


                                       19

<PAGE>   25

may from time to time request or as may be necessary to legally and validly
accomplish such transfers under applicable law. Each of Buyer and Charles Bryant
Kountz further agrees to cause any cash amounts remaining in any of the
Company's bank accounts at the time of the Closing to be segregated and held in
trust by the Company for the benefit of Seller and to be transferred as promptly
as reasonably practicable (but in no event later than five days after the
Closing Date) to Seller or to a bank account designated by Seller.

         8.5 Non-Core Stores. Buyer and the Company hereby agree that Seller and
its authorized representatives shall have the exclusive right to assume and
control any and all negotiations and transactions for the sale, lease,
sub-lease, transfer, conveyance, pre-payment or termination of any lease on any
Non-Core Store. In addition to their respective obligations under Section 8.2
above, Buyer and the Company hereby agree to execute and deliver, or cause to be
executed and delivered, all such documents and instruments (including, without
limitation, powers of attorney) and to take, or cause to be taken, all such
further or other actions (including, without limitation, obtaining any requisite
board of director or shareholder or landlord consents or approvals) as may be
necessary or desirable to consummate or expedite the negotiation or consummation
of any of the transactions contemplated by the foregoing sentence. Buyer and the
Seller further covenant and agree not to take any action that could delay,
jeopardize or compromise Seller's and its authorized representatives' ability to
negotiate and consummate the transactions contemplated by this Section 8.5. The
Company shall, and Buyer shall cause the Company to, comply in all respects with
the terms and conditions of the leases on the Non-Core Stores and the Company
shall not negotiate, enter into or commit to enter into any amendment,
modification or extension of any lease on any Non-Core Store except to the
extent any such negotiations, agreements or commitments are related to
transactions arranged by Seller or its authorized representatives as
contemplated by this Section 8.5. The Company shall, and Buyer shall cause the
Company to, maintain insurance policies in amounts and with the types of
coverage required under each lease on any Non-Core Store where such insurance
coverage is required by the terms of any such lease.


                                       20

<PAGE>   26

                                   ARTICLE IX
                                   TAX MATTERS

         9.1. Tax Returns and Payments.

                  (a) Seller shall be responsible for the preparation and filing
of (i) all Consolidated Returns required to be filed with respect to the Company
prior to the Closing Date, (ii) all Consolidated Returns that include the
Company with respect to Pre-Closing Periods and Straddle Periods and all other
tax returns for Pre-Closing Periods. Seller shall be responsible for the payment
of all Taxes shown to be due on such returns for all Pre-Closing Periods. In the
case of payments with respect to Straddle Periods, the portions of such Tax
related to the Pre-Closing Period shall be the amount payable as if the Straddle
Period ended as of the close of business on the Closing Date; the balance of
payments will be related to the Post-Closing Period. Any refunds related to
Pre-Closing Periods shall belong to Seller and, if received by Buyer or the
Company after Closing, shall be held in trust for Seller and promptly remitted
to Seller, but in no event later than two business days after receipt.

                  (b) Buyer and the Company shall be responsible for the
preparation and filing of all other Tax Returns with respect to the Company, and
for the payment of all Taxes with respect to such returns.

                  (c) To the extent permitted by law, Seller and Buyer shall use
their best efforts to cause any Taxable period to close on the Closing Date.

                  (d) Seller and Buyer shall cooperate in good faith in (i)
preparing and filing all Tax Returns, (ii) maintaining and making available to
each other all records necessary in connection with Taxes and (iii) resolving
all disputes and audits with respect to Taxes. Buyer and Seller recognize that
each may need access, from time to time after the Closing Date, to certain
accounting and tax records and information held by the other, including all
computerized books and records and any such information stored on any other form
of media ("Tax Records"). Therefore, Buyer, Seller and the Company agree (x) to
retain and maintain Tax Records relating to the Company for a period of 10 years
after the Closing Date, (y) to allow each other and their agents and
representatives, at times and dates mutually acceptable to the applicable
parties, to inspect, review and make copies of such Tax Records and to make
available the appropriate personnel with knowledge of such Tax Records to help
answer questions, such activities to be conducted during normal business hours
and with the requesting party paying out of pocket expenses only and (z) to
offer the other parties such records before destroying such records. The Company
and its personnel shall provide information to Seller necessary for preparation
of all Tax Returns required to be prepared or filed by Seller, in a manner
consistent with prior practice.

                  (e) Buyer shall pay any stock transfer taxes due as a result
of the sale of the Shares.

                  (f) Seller shall cause the provisions of any Tax sharing
agreement to which the Company is a party to be terminated on or before the
Closing Date.


                                       21

<PAGE>   27

                  (g) Seller shall have the sole and exclusive authority to file
amended Consolidated Returns for any Pre-Closing Periods and Straddle Periods
and to control any Tax audits, disputes, administrative or judicial proceedings
or settlements with respect to such Consolidated Returns. Any refunds with
respect to such Tax Returns shall be the property of Seller. Buyer and the
Company shall have the sole and exclusive authority to file any other amended
Tax Returns and to control any other Tax audits, disputes, administrative or
judicial proceedings or settlements with respect to the Company.

                  (h) Unless (i) required by applicable law or (ii) with Buyer's
consent (which consent shall not be unreasonably withheld) Seller shall not file
an amended Tax Return or enter into a settlement that will materially increase
the Taxes payable by the Company in Post-Closing Periods. Unless (x) required by
applicable law or (y) with Seller's consent (which consent shall not be
unreasonably withheld) Buyer or Company shall not file an amended Tax Return or
enter into a settlement that will materially increase any Taxes payable by
Seller.

                  (i) All Tax Returns and elections relating to the Company
shall be prepared and filed in a manner consistent with prior practice unless a
change in law or regulations requires otherwise.

         9.2. Section 338(h)(10) Election.

                  (a) Buyer and Seller shall make an election under Section
338(h)(10) of the Code and the Treasury Regulations promulgated thereunder and
any corresponding or similar elections under state, local or foreign tax law
(collectively, the "Section 338(h)(10) Election") with respect to the purchase
and sale of the Shares hereunder. Buyer and Seller shall cooperate and file all
Tax Returns and statements, forms and schedules in connection therewith in a
manner consistent with the Section 338(h)(10) Election and shall take no
position contrary thereto unless required to do so by applicable Tax laws.

                  (b) As soon as practicable after the Closing Date, Buyer shall
deliver to Seller Buyer's proposed calculation of the allocation of the
Aggregate Purchase Price among the assets of the Company in accordance with the
principles of the Treasury Regulations under Section 338 of the Code. Seller
shall have the right to review and approve (which approval shall not be
unreasonably withheld) such allocation for 60 days following receipt thereof.
Seller and Buyer shall attempt in good faith mutually to resolve any
disagreements regarding such allocation.

                  (c) Any assets distributed to Seller by the Company as a part
of this stock sale shall be treated as made as part of the deemed liquidation
provided for in Treasury Regulation 1.338(h)(10)-1(T).

                  (d) To the extent permitted by state or local tax Laws, the
principles and procedures of this Section 9.2 shall also apply with respect to a
Section 338(h)(10) Election or equivalent or comparable provision under state or
local law, including an election under Section 338(g) of the Code or equivalent
or comparable provision under state or local Law. Seller and Buyer shall make or
cause to be made any election similar to a Section 338(h)(10) Election that is
optional under any state or local law so as to treat the sale of the Shares
contemplated herein as a sale of assets for state and local income Tax purposes.


                                       22

<PAGE>   28

                                    ARTICLE X
            CONDITIONS TO OBLIGATION OF PARTIES TO CONSUMMATE CLOSING

         10.1. Conditions to Each Party's Obligations. The respective
obligations of each party to consummate the transactions contemplated hereby on
the Closing Date are subject to the satisfaction or written waiver of each of
the following conditions on or prior to the Closing Date:

                  (a) License Agreement. Buyer and the Company shall have
entered into the License Agreement.

                  (b) Supply Agreement. Buyer and the Company shall have entered
into the Supply Agreement.

                  (c) No Governmental or Other Proceedings or Litigation. There
shall be no injunction or Court Order restraining consummation of the
transactions contemplated hereunder and there shall be no pending or threatened
action or proceeding by or before a court or Governmental Body brought by or on
behalf of any Governmental Body seeking to restrain or invalidate all or any
portion of the transactions contemplated hereunder, and there shall not have
been adopted any law or regulation making all or any portion of the transactions
contemplated hereunder illegal.

                  (d) Joint Defense and Conflict Waiver Agreement. Buyer and
Seller shall have entered into the Joint Defense and Conflict Waiver Agreement.

         10.2. Conditions to Buyer's Obligations. The obligation of Buyer to
consummate the transactions contemplated hereby on the Closing Date is subject
to the satisfaction or written waiver of each of the following conditions on or
prior to the Closing Date:

                  (a) Covenants, Representations and Warranties. Seller shall
have performed in all material respects all agreements and complied in all
material respects with all covenants contained in this Agreement to be performed
and complied with by it prior to or on the Closing Date. The representations and
warranties of Seller set forth in this Agreement shall be accurate in all
material respects, on and as of the Closing Date, with the same force and effect
as though made on and as of the Closing Date except for any changes resulting
from activities or transactions which may have taken place after the date hereof
and which are permitted or contemplated by the Agreement or which have been
entered into in the ordinary course of business and except to the extent that
such representations and warranties are expressly made as of another specified
date and, as to such representations, the same shall be true as of such
specified date.

                  (b) Officer's Certificates. Buyer shall have received an
officer's certificate, executed by an officer of Seller, dated as of the Closing
Date, evidencing compliance with each of the conditions set forth in this
Article X within Seller's control.

                  (c) Form of Documents and Instruments. Buyer, Seller and the
Company shall have agreed upon the form and substance of the Note, the Supply
Agreement, the License Agreement and the Joint Defense and Conflict Waiver
Agreement.


                                       23

<PAGE>   29

                  (d) Cancellation of Inter-Company Indebtedness. The
Inter-Company Indebtedness shall be deemed to have been satisfied as of the
Closing.

         10.3. Conditions to Seller's Obligations. The obligation of Seller to
consummate the transactions contemplated hereby on the Closing Date is subject
to the satisfaction or written waiver of each of the following conditions on or
prior to the Closing Date:

                  (a) Covenants, Representations and Warranties. Buyer shall
have performed in all material respects all agreements and complied in all
material respects with all covenants contained in this Agreement to be performed
and complied with by it on or prior to the Closing Date. The representations and
warranties of Buyer set forth in this Agreement shall be accurate in all
material respects, on and as of the Closing Date, with the same force and effect
as though made on and as of the Closing Date except for any changes resulting
from activities or transactions which may have taken place after the date hereof
and which are permitted or contemplated by this Agreement or which have been
entered into in the ordinary course of business and except to the extent that
such representations and warranties are expressly made as of another specified
date and, as to such representations, the same shall be true as of such
specified date.

                  (b) Officer's Certificate. Seller shall have received an
officer's certificate executed by an officer of Buyer, dated as of the Closing
Date, evidencing compliance with each of the conditions set forth in this
Article X within Buyer's control.

                  (c) Debt Holder Consents. Seller shall have obtained any
required consents to the transactions contemplated by this Agreement, the
License Agreement and the Supply Agreement from the holders of its indebtedness.

                  (d) Note. Seller shall have received the Note executed by
Buyer.

                  (e) Guaranty. Seller shall have received the Guaranty executed
by Charles Bryant Kountz.

                  (f) Board Approval. The board of directors of Seller shall
have approved this Agreement, each agreement attached as an Exhibit hereto and
the transactions consummated hereby and thereby.


                                       24


<PAGE>   30

                                   ARTICLE XI
                                 INDEMNIFICATION

         11.1. Indemnification.

                  (a) Breaches of Representations, Warranties, etc. by Seller.
Seller shall indemnify and hold harmless Buyer and its Affiliates, directors,
officers, advisors, agents and employees to the fullest extent lawful, from and
against any and all demands, losses, damages, penalties, claims, liabilities,
obligations, actions, causes of action and reasonable expenses (including
without limitation, costs of investigating, preparing or defending any such
claim or action and reasonable legal fees and expenses) (collectively,
"Losses"), arising by reason of, or resulting from, any breach of any warranty,
representation, covenant or agreement of Seller contained in this Agreement or
in any certificate delivered pursuant thereto. To the extent that any claim for
damages is made under Section 4.15, the claim shall be reduced by the present
value of any future benefit to Buyer.

                  (b) Breaches of Representations, Warranties, etc. by Buyer.
Buyer shall indemnify and hold harmless Seller and its Affiliates, directors,
officers, advisors, agents and employees to the fullest extent lawful, from and
against any and all Losses arising by reason of or resulting from, any breach of
any warranty, representation, covenant or agreement of Buyer contained in this
Agreement or in any certificate delivered pursuant thereto.

                  (c) Indemnified Litigation. Seller shall indemnify, defend and
hold the Company harmless with respect to any Losses incurred or suffered as a
result of (i) the Theodore Collins, et al. v. Winston Tire Company case filed in
California Superior Court, Orange County, No. 00CC15245, on December 20, 2000,
and removed on February 16, 2001 to United States District Court for the Central
District of California, Southern Division, No. SACV 01-216 AHS (EEx) (the
"Collins Claim") and (ii) the Thomas Pina, et al. v. Winston Tire Company case,
filed in California Superior Court, Los Angeles County, No. BC 28753 on April
24, 2000 (the "Pina Claim"). In addition, Seller and Buyer each shall pay, or
cause to be paid, 50% of all costs of defending (including reasonable attorneys'
fee) plus 50% of the total amount of any Losses incurred or suffered to be
incurred as a result of the Jesse Solis v. Winston Tire Company, et al. case,
filed in California Superior Court, Fresno County, No. 599525-3 (the "Solis
Claim," and, together with the Collins Claim and the Pina Claim, the
"Indemnified Litigation"); provided, however, that Buyer shall not be required
to pay more than an aggregate of $75,000.00 of the combined costs of defending
and any Losses incurred or suffered to be incurred in connection with the Solis
Claim. Seller shall have the right to assume and conduct the defense of the
Collins Claim and the Pina Claim and Buyer shall have the right to assume and
conduct the defense of the Solis Claim. Seller may settle the Collins Claim or
the Pina Claim without the consent of Buyer or the Company to the extent that
such settlement involves solely monetary payments or actions that do not impose
any conditions or obligations on Buyer or the Company. Buyer shall conduct the
defense of the Solis Claim in a commercially reasonable manner. Buyer and the
Company shall not be authorized to settle the Solis Claim without the consent of
Seller (which consent shall not be unreasonably withheld). Buyer and the Company
shall cooperate, and shall use their respective best efforts to cause their
employees, representatives and other Persons within their control to cooperate,
in all respects with Seller in litigating or settling the Indemnified Litigation
and each of Buyer and the Company agrees to implement, or cause to be


                                       25


<PAGE>   31

implemented, any changes or modifications in the Company's business policies,
procedures or practices required in connection with any settlement or Court
Order relating to the Indemnified Litigation.

         (d) Indemnified Lease Liabilities.

                           (i) Seller shall indemnify the Company for any Lease
         Liabilities relating to the Non-Core Stores and Buyer and the Company
         shall indemnify Seller for any Lease Surplus relating to the Non-Core
         Stores, in each case in accordance with the terms and subject to the
         conditions set forth in this Section 11.1(d).

                           (ii) The aggregate amount of Lease Liabilities or
         Lease Surplus, as the case may be, shall be calculated by the Company
         on a monthly basis and a written report (the "Monthly Report") of such
         calculation (showing in reasonable detail the calculations used to
         derive the result) will be provided to Seller within five business days
         after the end of each calendar month during which Buyer, the Company or
         their respective Affiliates has any obligations under any lease on any
         Non-Core Store. The Monthly Report will be certified by a duly elected
         and authorized officer of Buyer as being true, complete and correct in
         all material respects.

                           (iii) Within ten business days after the end of each
         calendar month, Seller shall pay to Buyer or its designee the full
         amount of any Lease Liabilities for the preceding calendar month and
         Buyer shall pay to Seller or its designee the full amount of any Lease
         Surplus for the preceding calendar month, as the case may be.

                           (iv) Seller and its authorized representatives shall
         have the right to audit and inspect the books and records of the
         Company (including, without limitation, financial records, bank reports
         and statements) and Buyer and the Company agree to provide Seller and
         its authorized representatives access during normal business hours to
         their respective books, records contracts, tax returns and tax records
         and to any officers, employees and other Persons controlled by Buyer or
         the Company for the purpose of verifying any information set forth in
         any Monthly Statement and any other purpose reasonably related to
         determining the amount of Lease Liabilities or Lease Surplus for any
         period (collectively, the "Inspection Rights"). Buyer and the Company
         agree to execute and deliver any documents and instruments and to take
         such further actions as Seller may request in order to permit Seller
         and its authorized representatives to fully exercise the foregoing
         Inspection Rights.

                           (v) The parties acknowledge and agree that the mutual
         indemnification obligations provided in this Section 11.1(d) shall
         automatically terminate and be of no further force and effect (A) if
         the Company materially breaches any lease on any Non-Core Store or if
         any of Buyer, the Company or Charles Bryant Kountz breaches any
         material obligation owed to Seller hereunder or (B) immediately upon
         any Change in Control.

                           (vi) Any disputes regarding the Monthly Reports shall
         be resolved in accordance with the dispute resolution proceedings set
         forth in Section 12.13.


                                       26


<PAGE>   32

         11.2. Indemnification Threshold, Limit and Time Limitations.

                  (a) The indemnification obligations of Seller set forth in
Section 11.1 (other than those indemnification obligations set forth in Section
11.1(d)) will be triggered only if the aggregate amount of Losses indemnifiable
pursuant to this Agreement exceeds, in the aggregate, $200,000.00, in which case
Seller shall be liable for all Losses in excess of the first $200,000.00 of
Losses. The total amount of all Losses indemnifiable by Seller pursuant to this
Agreement shall not exceed, in the aggregate, $1,000,000.00; provided, however,
that in the event Buyer or the Company breaches any of their respective
obligations pursuant to Section 11.1(c), in addition to any other remedies for
such breach that Seller may have, the $1,000,000.00 aggregate dollar limitation
provided for in this sentence automatically and without any further action of
any party shall be reduced to $500,000.00.

                  (b) The indemnification obligations set forth in Section 11.1
shall survive the Closing for a period of two years following the Closing Date;
provided, however, that the representations in Section 4.15 shall survive the
Closing for a period equal to the statute of limitations applicable thereto.

         11.3. Losses. The amount of any Losses shall be calculated (a) net of
any reserves, liability accruals or other provisions for such Losses on the
Company's balance sheet, (b) net of any insurance proceeds paid or payable with
respect thereto and (c) after the effect of any tax benefits realizable in
connection therewith.

         11.4. Defense of Claims. If a claim for Losses (a "Claim") is to be
made by an indemnified party, such indemnified party shall give written notice
(a "Claim Notice") to the indemnifying party as soon as practicable after such
indemnified party becomes aware of any fact, condition or event which may give
rise to Losses for which indemnification may be sought under this Article XI. If
any lawsuit or enforcement action is filed against any indemnified party with
respect to a matter subject to indemnity hereunder, a Claim Notice shall be
given to the indemnifying party as promptly as practicable (and in any event
within 15 calendar days after the service of the citation or summons). The
failure of any indemnified party to give timely notice hereunder shall not
affect rights to indemnification hereunder, except to the extent that the
indemnifying party demonstrates actual damage caused by such failure. After
receipt of a Claim Notice, then the indemnifying party shall be entitled, if it
so elects, (a) to take control of the defense and investigation of such lawsuit
or action, (b) to employ and engage attorneys of its own choice to handle and
defend the same, at the indemnifying party's cost, risk and expense and (c) to
compromise or settle such claim, which compromise or settlement shall be made
only with the written consent of the indemnified party (which consent shall not
be unreasonably withheld). The indemnified party shall cooperate in all
reasonable respects with the indemnifying party and such attorneys in the
investigation, trial and defense of such lawsuit or action and any appeal
arising therefrom; and the indemnified party may, at its own cost, participate
in the investigation, trial and defense of such lawsuit or action and any appeal
arising therefrom. The parties shall also cooperate with each other in any
notifications to insurers. If the indemnifying party fails to assume the defense
of such claim within 15 calendar days after receipt of the Claim Notice, the
indemnified party against which such claim has been asserted will (upon
delivering notice to such effect to the indemnifying party) have the right to
undertake the defense, compromise or settlement of such claim and the
indemnifying party shall have the


                                       27


<PAGE>   33

right to participate therein at its own cost; provided, however, that such claim
shall not be compromised or settled without the written consent of the
indemnifying party (which consent shall not be unreasonably withheld). In the
event the indemnified party assumes the defense of the claim, the indemnified
party will keep the indemnifying party reasonably informed of the progress of
any such defense, compromise or settlement. Notwithstanding the foregoing, the
indemnifying party shall not be liable for the reasonable fees and expenses of
more than one separate firm of attorneys at any time for any and all indemnified
parties (which firm shall be designated in writing by such indemnified party or
parties) in connection with any one such action or proceeding arising out of the
same general allegations or circumstances.

         11.5. Exclusive Remedy. From and after the Closing, the parties' rights
to indemnification pursuant to this Article XI shall be the sole and exclusive
remedy available to the parties with respect to any matter arising under or in
connection with this Agreement or the transactions contemplated hereby;
provided, however, that such exclusive remedy limitation shall not apply to
breaches or alleged breaches of the License or the Supply Agreement.

         11.6. Limitation on Recourse. No party shall be liable to any other
party hereto for any punitive or consequential incidental damages (including
loss of revenue or income, business interruption, cost of capital or loss of
business reputation or opportunity) relating to any claim under this Agreement.
No claim for the recovery of Losses based upon breach of any representation,
warranty, covenant or agreement may be asserted by any indemnified party against
any indemnifying party if the indemnified party had knowledge of such breach on
or before the Closing Date.

         11.7. Multiple Breaches from Same Facts. For the avoidance of doubt, it
is agreed that if there is a breach of more than one representation or warranty
on account of the same facts or circumstances, such breach shall give rise to
full single indemnification but shall not give rise to indemnification more than
once on account thereof.

         11.8 Access to Information. From and after the Closing, Buyer and the
Company will give Seller and its authorized representatives reasonable access
during normal business hours to all employees, stores, offices, warehouses and
other facilities, to all books and records and all personnel files of current or
former employees of the Company as Seller may reasonably require to defend
against, and will cause its officers to furnish Seller with such financial and
operating data and other information with respect to the business and properties
of the Company as Seller may from time to time reasonably request in connection
with, the Indemnified Litigation. Furthermore, Buyer will cause its attorneys,
consultants and advisers to provide any information required by Seller in
connection with the Indemnified Litigation. The Company shall furnish to Seller
within one business day following receipt thereof any notices, complaints,
briefs, replies or other documents to the Indemnified Litigation.


                                       28

<PAGE>   34

                                   ARTICLE XII
                                  MISCELLANEOUS

         12.1. Termination.

                  (a) This Agreement shall terminate on the earliest to occur of
any of the following events:

                           (i) the mutual written agreement of Buyer and Seller;

                           (ii) by written notice of Buyer if Goodyear Tire &
         Rubber Company, through no fault of Buyer, fails to provide the
         $8,250,000.00 in cash consideration to be delivered by Buyer as a
         portion of the Aggregate Purchase Price to be delivered by Buyer to
         Seller at the Closing;

                           (iii) by written notice of Buyer to Seller if the
         Closing shall not have occurred, through no fault of Buyer, prior to
         the close of business on May 15, 2001;

                           (iv) by written notice of Buyer to Seller, if Seller
         shall have materially breached any of its representations, warranties
         or agreements contained in this Agreement and Seller shall have failed
         to cure such breach within 10 days following written notification
         thereof by Buyer; or

                           (v) by written notice of Seller to Buyer, if (A)
         Buyer shall have materially breached any of its representations,
         warranties or agreements contained in this Agreement and Buyer shall
         have failed to cure such breach within 10 days following notification
         thereof by Seller or (B) if the Closing shall not have occurred,
         through no fault of Seller, prior to the close of business on May 15,
         2001.

Notwithstanding the foregoing, with respect to the termination rights set forth
in the foregoing clause (iv) and clause (v), the parties expressly acknowledge
and agree that if Seller or Buyer, as the case may be, fails to consummate the
transactions contemplated hereby after satisfaction or valid waiver of all
conditions to such party's obligations, the party failing to consummate such
transaction shall not be entitled to any right to cure any such breach.

                  (b) In the event of termination of this Agreement:

                           (i) if requested, each party will promptly redeliver
         all confidential information of any other party relating to the
         transactions contemplated hereby, whether so obtained before or after
         the execution hereof to the party furnishing the same.

                           (ii) except for Section 12.6, Section 12.8, Section
         12.9 and Section 12.13 and Seller's right to retain the Deposit in the
         event that Seller terminates this Agreement pursuant to Section
         12.1(a)(v) as referenced in Section 2.2, this Agreement shall become
         void and of no further force and effect and no party hereto shall have
         any liability or further obligation to any other party relating to the
         transactions contemplated hereby; provided, however, that no such
         termination shall relieve any party from liability for a prior breach
         of this Agreement.


                                       29

<PAGE>   35

                           (iii) pursuant to Section 12.1(a)(ii), Buyer and
         Seller shall promptly provide joint written notice to the escrow agent
         holding the Deposit to release the Deposit to a bank account designated
         by Buyer as promptly as reasonably practicable.

         12.2 Non-Compete. For a period of two years from the Closing Date,
Seller agrees not to own, manage, operate, or control any entity physically
located in the State of California that competes against the Company in the
retail tire industry in the State of California; provided, however, that,
notwithstanding the foregoing, Seller shall be entitled to continue to operate
its Economy Import Shops stores in the State of California, even if such stores
compete against the Company in the retail tire industry in the State of
California.

         12.3. Modifications, Waiver of Rights. Any amendment, change or
modification of this Agreement shall be void unless in writing and signed by
Buyer and Seller. No failure or delay by any party hereto in exercising any
right, power or privilege hereunder (and no course of dealing between or among
any of the parties) shall operate as a waiver of any such right, power or
privilege. No waiver of any default on any one occasion shall constitute a
waiver of any subsequent or other default. No single or partial exercise of any
such right, power or privilege shall preclude the further or full exercise
thereof.

         12.4. Notices. All notices, requests, claims, demands and other
communications hereunder shall be in writing and shall be deemed to have been
duly given or made upon receipt when personally delivered, delivered by courier
service, by cable, by telecopy, by telegram, by telex or by registered or
certified mail (postage prepaid, return receipt requested) to the respective
parties hereto as follows:

                  Buyer:

                  Performance Management Inc.
                  P.O. Box 80429
                  Lafayette, Louisiana  70598-0429
                  Attention:  Charles Bryant Kountz
                  Tel No.: (318) 232-9600


                  with a copy to:

                  Fleming & Allen, LLP
                  2592 N. Santiago Blvd.
                  Suite C
                  Orange, California  92867
                  Attention:  J. Wayne Allen
                  Tel No.: (714) 283-4180
                  Fax No.: (714) 283-4138


                                       30

<PAGE>   36

                  Seller:

                  Heafner Tire Group, Inc.
                  2105 Water Ridge Parkway, Suite 500
                  Charlotte, NC 28217-4562
                  Attention:  J. Michael Gaither
                              Executive Vice President and General Counsel
                  Tel No.: (704) 423-8989

                  with a copy to:

                  Covington & Burling
                  1330 Avenue of the Americas
                  New York, New York  10019
                  Attention:  Scott F. Smith, Esq.
                  Tel No.: (212) 841-1056
                  Fax No.: (212) 841-1010

or to such other address as to any party hereto as such party shall designate by
like notice to the other parties hereto. Any such communication shall bear the
date on which it is delivered or deposited in the mail. The address and
facsimile information provided for above may be changed by giving notice in the
manner provided by this Section 12.4.

         12.5. Counterparts. This Agreement may be executed by facsimile
signature and in several counterparts, each of which shall be deemed an original
but all of which counterparts collectively shall constitute one instrument.

         12.6. Expenses. Each of the parties hereto will bear all costs,
charges and expenses incurred by such party in connection with this Agreement
and the consummation of the transactions contemplated herein, including
attorneys' fees incurred in connection with the negotiation and preparation of
this Agreement.

         12.7. Binding Effect; Assignment. This Agreement shall be binding
upon and inure to the benefit of Buyer and Seller and their respective
representatives, successors and permitted assigns, in accordance with the terms
hereof. This Agreement shall not be assignable by any party without the prior
written consent of the other parties hereto.

         12.8. Entire Agreement. This Agreement and the other agreements
referred to herein and the Confidentiality Agreement constitute the entire
agreement between the parties hereto with respect to their respective subject
matter and supersede all prior or contemporaneous agreements, representations,
warranties, statements, promises, information, arrangements and understandings,
whether oral or written, express or implied, with respect to such subject
matter. Without limiting the foregoing, this Agreement shall supersede the
Agreement in Principle dated as of April 10, 2001, which Agreement shall be
terminated as of the date hereof and be of no further force and effect.

         12.9. Governing Law. This Agreement and its validity, construction,
enforcement and interpretation shall be governed by and construed in accordance
with the substantive laws of the


                                       31

<PAGE>   37

State of California without giving effect to any choice or conflict of law
provision or rule (whether of the State of California or any other
jurisdiction).

         12.10. Severability. If any provision of this Agreement is deemed or
held to be illegal, invalid or unenforceable, this Agreement shall be considered
divisible and inoperative as to such provision solely to the extent it is deemed
to be illegal, invalid or unenforceable, and in all other respects this
Agreement shall remain in full force and effect; provided, however, that if any
provision of this Agreement is deemed or held to be illegal, invalid or
unenforceable, a provision that is legal, valid and enforceable and is as
similar as possible to such illegal, invalid or unenforceable provision shall be
deemed added hereto automatically. Further, should any provision contained in
this Agreement ever be reformed or rewritten by any judicial body of competent
jurisdiction, such provision as so reformed or rewritten shall be binding upon
all parties hereto.

         12.11. Obligation of the Parties. This Agreement represents an
obligation only of the signatory parties. The representations, warranties,
covenants and agreements included in this Agreement shall be obligations of such
entities only, shall be satisfied only from the assets of such entity, and shall
not be satisfied from the assets of the shareholders or Affiliates of the
signatory parties.

         12.12. Headings. Headings of the Articles and Sections of this
Agreement, the Table of Contents, the Lists of Exhibits and Schedules and the
index of defined terms are for convenience of the parties only, and shall be
given no substantive or interpretive effect.

         12.13. Dispute Resolution, Consent to Jurisdiction. EACH OF THE
PARTIES TO THIS AGREEMENT AGREES TO BE BOUND BY THE PROVISIONS SET FORTH IN
ANNEX A TO THIS AGREEMENT. EACH PARTY HERETO HEREBY IRREVOCABLY AND
UNCONDITIONALLY SUBMITS TO THE EXCLUSIVE JURISDICTION OF THE UNITED STATES
DISTRICT COURT FOR THE MIDDLE DISTRICT OF NORTH CAROLINA SITTING IN CHARLOTTE
FOR PURPOSES OF ALL LEGAL PROCEEDINGS WHICH ARE NOT GOVERNED BY ANNEX A AND
WHICH ARISE OUT OF OR RELATE TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED
HEREBY, AND EACH OF THE PARTIES HERETO AGREES NOT TO COMMENCE ANY LEGAL
PROCEEDING RELATED THERETO EXCEPT IN SUCH COURT. EACH PARTY HERETO IRREVOCABLY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH IT MAY NOW
OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY SUCH PROCEEDING BROUGHT IN ANY
SUCH COURT AND ANY CLAIM THAT ANY SUCH PROCEEDING BROUGHT IN ANY SUCH COURT HAS
BEEN BROUGHT IN AN INCONVENIENT FORUM.

         12.14. Disclosure Generally. If and to the extent any information
required to be furnished in any Schedule is contained in this Agreement or
disclosed on any Schedule attached hereto, such information shall be deemed to
be included in all Schedules in which the information is required to be included
to the extent such disclosure is reasonably apparent on its face. The inclusion
of any information in any provision of this Agreement or any instrument or
document executed by Seller or the Company in connection with this Agreement or
in any Schedule attached hereto shall not be deemed to be an admission or
acknowledgment by Seller


                                       32

<PAGE>   38

or the Company, in and of itself, that such information is required by the terms
hereof to be disclosed or is material to or outside the ordinary course of the
business of the Company.

         12.15. Specific Performance. The parties hereto acknowledge and agree
that irreparable damage that could not be adequately compensated for by monetary
damages alone would occur in the event any provision of this Agreement was not
performed in accordance with the terms hereof and that the parties shall be
entitled to specific performance of the terms hereof, in addition to any other
remedy at law or in equity, without the necessity of demonstrating the
inadequacy of monetary damages.

         12.16. No Third Party Beneficiaries. This Agreement shall be binding
upon and inure solely to the benefit of the parties hereto and their respective
successors and permitted assigns, and nothing herein, whether express or
implied, is intended to or shall confer upon any other person, any legal or
equitable right, benefit or remedy of any nature whatsoever, under or by reason
of this Agreement.

                      [THIS SPACE INTENTIONALLY LEFT BLANK]


                                       33

<PAGE>   39



         IN WITNESS WHEREOF, each of the parties hereto has caused this
Agreement to be duly executed as of the date first above written.

                                       BUYER
                                       -----

                                       PERFORMANCE MANAGEMENT INC.,
                                         a Louisiana corporation



                                       By:    /s/ Charles Bryant Kountz
                                              ----------------------------------
                                       Name:  Charles Bryant Kountz
                                              ----------------------------------
                                       Title: Secretary Treasurer
                                              ----------------------------------


                                       SELLER
                                       ------

                                       HEAFNER TIRE GROUP, INC.,
                                         a Delaware corporation



                                       By:    /s/ J. Michael Gaither
                                              ----------------------------------
                                       Name:  J. Michael Gaither
                                              ----------------------------------
                                       Title: Executive Vice President
                                              ----------------------------------


                                       COMPANY
                                       -------

                                       WINSTON TIRE COMPANY,
                                         a California corporation



                                       By:    /s/ J. Michael Gaither
                                              ----------------------------------
                                       Name:  J. Michael Gaither
                                              ----------------------------------
                                       Title: Vice President
                                              ----------------------------------


                                       /s/ Charles Bryant Kountz
                                       -----------------------------------------


                                       34

<PAGE>   40



                                     ANNEX A
                           TO STOCK PURCHASE AGREEMENT

                          DISPUTE RESOLUTION PROCEDURE

         1. Scope of Arbitration. The parties to the Stock Purchase Agreement
dated as of May 4, 2001 by and among Performance Management Inc., a Louisiana
corporation, Heafner Tire Group, Inc., a Delaware corporation and the sole
shareholder of Winston Tire Company, a California corporation, the Company and
Charles Bryant Kountz will submit to final and binding arbitration as the sole
and exclusive remedy for all claims for damages arising out of, involving, or
relating to (a) the Stock Purchase Agreement, (b) the documents and instruments
executed and delivered in connection with the Stock Purchase Agreement and (c)
the events giving rise to the Stock Purchase Agreement, including any and all
non-contractual claims for damages related to the Stock Purchase Agreement or
the events giving rise to it (including claims for fraudulent inducement of
contract). Notwithstanding the foregoing, the dispute resolution procedure set
forth in this Annex A does not apply to claims for injunctive or other equitable
relief pursuant to the express terms of the Stock Purchase Agreement or any
other agreement entered into in connection with the Stock Purchase Agreement.

         2. Notice of Dispute. Any party shall give the other parties written
notice of the existence and nature of any dispute proposed to be arbitrated
pursuant to this Annex A (the "Written Notice"). Such Written Notice must be
served on the other parties as described below. The party serving Written Notice
shall be referred to as the "Claiming Party." The party to whom the claims are
directed shall be referred to as the "Responding Party."

         3. Appointment of Arbitrators. Each party shall appoint one person to
serve as an arbitrator within seven days of receipt of the Written Notice. The
two arbitrators thus appointed shall within seven days of their appointment
together select a third arbitrator with such knowledge and expertise as
necessary to serve as chairman of the panel of arbitrators, and this person
shall serve as chairman. The three arbitrators shall determine all matters,
including, but not limited to, the panel's final decision with respect to the
claims presented in the arbitration, by majority vote. If the two arbitrators
selected by the parties are unable to agree upon the appointment of the third
arbitrator within seven days of their appointment, both shall give written
notice of such failure to agree to the parties, and if the parties fail to agree
upon the selection of such third arbitrator within five days thereafter, such
third arbitrator shall be appointed from, and pursuant to the rules for
commercial arbitration of, the American Arbitration Association. Prior to
appointment, each arbitrator shall agree to conduct such arbitration in strict
accordance with the terms of this Annex A.

         4. Initial Meeting of the Arbitrators. Within seven days of the
selection of the third arbitrator, the arbitrators shall conduct an initial
meeting with the parties (the "Initial Meeting"). All meetings between the
arbitrators, or between the arbitrators and the parties, including, but not
limited to, the Initial Meeting, may be conducted by telephone, with the
exception of any arbitration hearing at which evidence is presented. At the
Initial Meeting, the parties and the arbitrators shall agree upon a schedule for
the arbitration proceedings, with dates no later than the deadlines provided in
Section 7 below. The statement of claim, the response to the statement


                                      A-1

<PAGE>   41


of claim and counterclaims (if any), and the response to the counterclaims (if
any) (collectively, the "Pleadings") shall be submitted to each arbitrator on
the date they are served, unless service occurs prior to appointment of all
three arbitrators. If service of any of the Pleadings occurs prior to the
appointment of any of the arbitrators, copies of any such Pleadings shall be
submitted to such arbitrator promptly after such arbitrator's appointment.

         5. Conduct of the Arbitration. No more than eleven months shall pass
between the selection of the third arbitrator and the release of a decision by
the arbitration panel. Any arbitration held pursuant to this Annex A shall take
place in New York City, New York. The law of the State of New York shall supply
the substantive law of the arbitration proceedings, and any claims or
counterclaims alleged pursuant to federal law shall be adjudicated as if pled in
a federal court in New York. All proceedings, including discovery, depositions,
and the arbitration hearings shall be governed by the Federal Rules of Civil
Procedure and the Civil Rules of the United States District Court for the
Southern District of New York, unless such rules conflict with the provisions of
this Annex A, in which case the provisions of this Annex A control.

         6. Motions. The parties may make applications to the panel of
arbitrators regarding issues of discovery, procedure and privilege. Any such
motions shall be made to and resolved by the arbitrators as soon as practicable.
No party shall be permitted to file any motions for dismissal of claims
(including dismissal based upon failure to join an indispensable party), or for
summary judgment, concerning the claims or counterclaims asserted in any
arbitration under this Annex A.

         7. Schedule of Arbitration Proceedings. At the Initial Meeting, the
parties and the arbitrators shall agree to a schedule that conforms with the
following deadlines:

          Event                            Deadline Not Later Than
--------------------------------------------------------------------------------
Service of a statement of
claim by the Claiming Party   Seven days after service of the Written Notice

Service of response to
the statement of claim and
counterclaims (if any) by
the Responding Party          14 days after receipt of the statement of claim

Service of response to
counterclaims (if any) by
the Claiming Party            Seven days after receipt of counterclaims (if any)

Commencement of
document discovery            One day after service of response to the statement
                              of claim

Commencement of
deposition discovery          75 days after service of the statement of claim

Completion of all discovery   200 days after service of the statement of claim


                                      A-2

<PAGE>   42


Commencement of
the arbitration hearing       28 days after completion of discovery

Issuance of a decision by
the arbitrators               14 days after receipt of the last hearing
                              transcript by the arbitrators. All sessions of the
                              arbitration hearings shall be promptly transcribed
                              and transcripts shall be promptly provided to the
                              parties and the arbitrators


         8. Decision Binding on the Parties. Unless the parties agree otherwise
in writing, the arbitrators' decision shall become binding on the parties at
such time as the decision is confirmed by order of the Superior Court of any
applicable jurisdiction. The parties hereby irrevocably and unconditionally
submit to the jurisdiction of any such court for any and all proceedings
relating to such confirmation. Any award ordered shall be paid within 10 days of
confirmation of the arbitrators' decision.

         9. Cost of Arbitration Proceeding. In the event that the arbitrators
determine that no party is entitled to indemnification by any other party, then
(a) each party shall pay its own expenses, including attorney's fees, fees paid
to experts, fees for obtaining transcripts, expenses of witnesses called solely
by that party, and all fees charged by the arbitrator appointed by such party
and (b) the parties shall each pay fifty percent of all remaining expenses of
the arbitration proceeding.

         10. Extensions of Time. The parties may jointly agree, in writing, to
extend any of the deadlines set forth in Section 7 above.

         11. Service of Documents. Any process, notice, memorandum, motion,
demand, or other paper or communication, or application to the panel of
arbitrators shall be deemed to have been sufficiently served or submitted if (a)
personally delivered, or (b) sent by a nationally recognized overnight courier
service.



                                      A-3



<PAGE>   43

                                    EXHIBIT A

                                  Winston Tire
                               Statement of Income
                               2001 Operating Plan
                                    ($000's)
<TABLE>
<CAPTION>
                           ACTUAL
                             Jan     Feb     Mar     Apr     May     Jun    Jul      Aug     Sep     Oct     Nov     Dec    Total
                           ------  ------  ------  ------  ------  ------  ------  ------  ------  ------  ------  ------  -------
<S>                        <C>     <C>     <C>     <C>     <C>     <C>     <C>     <C>     <C>     <C>     <C>     <C>     <C>
Net Sales                  12,815  10,918  10,600  10,800  11,140  11,340  11,540  12,240  12,640  11,840  10,240  10,140  136,253

Cost of Sales               7,701   6,490   6,545   6,450   6,615   6,715   6,785   7,165   7,455   6,980   5,985   5,920   80,806
                           ------  ------  ------  ------  ------  ------  ------  ------  ------  ------  ------  ------  -------
Gross Profit                5,114   4,428   4,055   4,350   4,525   4,625   4,755   5,075   5,185   4,860   4,255   4,220   55,447
 % to sales                 39.9%   40.6%   38.3%   40.3%   40.6%   40.8%   41.2%   41.5%   41.0%   41.0%   41.6%   41.6%    40.7%
Operating Expenses:
 Salaries and Wages         2,737   2,519   2,247   2,179   2,211   2,236   2,267   2,345   2,384   2,259   1,985   1,945   27,314
 Occupancy & Vehicles       1,935   1,724   1,856   2,161   2,031   1,632   1,478   1,509   1,529   1,440   1,397   1,483   20,174
 Advertising                  258     408     562     391     391     391     391     392     392     259     207      44    4,086
 Depreciation and
  Amortization                401     239     471     481     494     500     505     524     535     513     470     467    5,600
 Net Service Charges           --      --      --      --      --      --      --      --      --      --      --      --       --
 Other                      1,052   1,296   1,021     874     870     879     816     843     847     816     746     722   10,782
                           ------  ------  ------  ------  ------  ------  ------  ------  ------  ------  ------  ------  -------
  Total operating expenses  6,383   6,186   6,157   6,086   5,997   5,637   5,457   5,612   5,687   5,287   4,805   4,662   67,958


  Operating Income         (1,269) (1,758) (2,102) (1,736) (1,472) (1,012)   (702)   (537)   (502)   (427)   (550)   (442) (12,511)

Interest Expense              (15)    (15)     (5)     (5)     (5)     (5)     (5)     (5)     (5)     (5)     (5)     (5)     (80)
Other Income (Expense)          1      --     129      77    (555)   (212)     --      --      --      --      --    (609)  (1,169)
                           ------  ------  ------  ------  ------  ------  ------  ------  ------  ------  ------  ------  -------

Pre-Tax Income             (1,283) (1,773) (1,978) (1,664) (2,032) (1,229)   (707)   (542)   (507)   (432)   (555) (1,056) (13,760)

Income Taxes                 (514)   (487)   (543)   (457)   (558)   (337)   (194)   (149)   (139)   (119)   (153)   (290)  (3,940)
                           ------  ------  ------  ------  ------  ------  ------  ------  ------  ------  ------  ------  -------

Net Income (Loss)            (769) (1,286) (1,435) (1,207) (1,474)   (892)   (513)   (393)   (368)   (313)   (402)   (766)  (9,820)
                           ======  ======  ======  ======  ======  ======  ======  ======  ======  ======  ======  ======  =======

EBITDA                       (868) (1,519) (1,631) (1,255)   (978)   (512)   (197)    (13)     33      86     (80)     25   (6,911)
                           ======  ======  ======  ======  ======  ======  ======  ======  ======  ======  ======  ======  =======
</TABLE>







<PAGE>   44

                                                                       EXHIBIT C


                 PERSONAL GUARANTY, dated as of May 15, 2001, by
                 Charles Bryant Kountz, in favor of
                 Heafner Tire Company, Inc. ("Guaranty").
                 -----------------------------------------------


         1. I, Charles Bryant Kountz residing in Lafayette, Louisiana, with a
mailing address at P.O. Box 80429, Lafayette, Louisiana 70598-0429
("Guarantor"), do hereby unconditionally and irrevocably personally guaranty the
prompt payment and performance when due of (a) all obligations of Performance
Management Inc., a Louisiana corporation ("Borrower"), under a Promissory Note
(the "Note") by and between Borrower and Heafner Tire Group, Inc., a Delaware
corporation ("Lender") dated May 15, 2001 and (b) all amounts owed by Borrower
or its affiliates to Lender resulting from any extension of credit by Lender to
Borrower or its affiliates ("Credit Arrangements"). A copy of the Note is
attached hereto as Exhibit A, and made a part hereof by this reference.

         2. Guarantor agrees that its obligations hereunder are an unconditional
and absolute guaranty of payment and performance of Borrower's obligations under
the Note and with respect to any Credit Arrangements, irrespective of any
waiver, consent or granting of any indulgence by Lender with respect to any
provision of the Note or any Credit Arrangements, irrespective of whether Lender
shall have instituted any suit, action or proceeding or exhausted its remedies
under the Note or with respect to any Credit Arrangements or taken any steps to
enforce any rights against Borrower, Guarantor or against any other person to
compel any such performance or to collect all or part of any obligations
thereunder.

         3. Guarantor hereby waives diligence, presentment, demand of payment,
filing of claims with a court in the event of bankruptcy of Borrower, protest,
notice of default in the payment of any sum payable by Borrower, notice of any
other default, breach or non-performance of any agreement, covenant or
obligation of Borrower, and notice and all demands whatsoever with respect to
the obligations hereunder. Guarantor expressly waives notice from Lender of its
acceptance of and reliance on this Guaranty. Guarantor agrees to pay all
reasonable costs, expenses and fees, including, without limitation, all
reasonable attorneys fees, costs and expenses, which may be incurred by Lender
in enforcing or attempting to enforce this Guaranty following any default on the
part of Guarantor hereunder, whether the same shall be enforced by suit or
otherwise.

         4. No amendment, release or modification of the provisions of this
Guaranty shall be established by conduct, custom or course of dealing, but
solely by an instrument in writing duly executed by the parties hereto. Lender
shall have the full right, without any notice to or consent from Guarantor, from
time to time and at any time, and without affecting, impairing or discharging,
in whole or in part, the liability of Guarantor hereunder: (a) to make any
change, amendment or modification whatsoever to or of any term or condition of
the Note or any Credit Arrangements; (b) to extend, in whole or in part, by
renewal or otherwise, and on one or more occasions, any term or condition of the
Note or any Credit Arrangements; (c) to assign this Guaranty to any assignee of
the Note (it being understood that this Guaranty shall be deemed to



<PAGE>   45

have been duly assigned to a person or entity when the Note is duly assigned to
such person or entity), or (d) to assign, settle, compromise, release,
surrender, modify or impair, and to enforce and exercise, or fail or refuse to
enforce or exercise, any claims, rights or remedies of any kind or nature
against Borrower.

         5. Lender shall be under no obligation to proceed against Borrower
before proceeding against Guarantor. All rights of Lender hereunder or otherwise
arising under any documents executed in connection with or as security for the
amounts owed under the Note or with respect to any Credit Arrangements are
separate and cumulative and may be pursued separately, successively or
concurrently, or not pursued, without affecting or limiting any other right of
Lender and without affecting or impairing the liability of such Guarantor.

         6. Guarantor waives, to the extent permitted by law, the benefit of
Sections 2819, 2845, 2848 and 2850 of the California Civil Code. In addition to
and without limiting the generality of the foregoing, Guarantor hereby
specifically waives the benefits of N.C. Gen. Stat. ss. 26-7 through 26-9,
inclusive. Guarantor shall not be discharged, released or exonerated, in any
way, from its absolute and unconditional liabilities hereunder, even though any
rights or defenses which Guarantor may have against Borrower, Lender or others
may be destroyed, diminished or otherwise affected, by: (a) any declaration by
Lender of a default in respect of any of the obligations under the Note, any
Credit Arrangements or this Guaranty; (b) the exercise by Lender of any rights
or remedies against Borrower or any other person; or (c) the failure of Lender
to exercise any rights or remedies against Borrower or any other person.

         7. Until all obligations under the Note, any Credit Arrangements and
this Guaranty have been performed in full, discharged or validly released,
Guarantor shall not have any right to subrogation, and Guarantor waives any
right to enforce any remedy which Lender now has or hereafter may have against
Borrower. Guarantor waives any right to plead or assert any election of
remedies. Guarantor shall not be discharged, released or exonerated, in any way,
from its absolute, unconditional, and independent liabilities hereunder, whether
by the voluntary or involuntary participation by Borrower in any settlement or
composition for the benefit of Borrower's creditors, whether in liquidation,
readjustment, receivership, bankruptcy or otherwise. This Guaranty shall
continue to be effective, or be reinstated, as the case may be, if at any time
payment, or any part thereof, of any of the amounts due under the Note or with
respect to any Credit Arrangements is rescinded or must otherwise be restored or
returned by Lender upon the insolvency, bankruptcy, dissolution, liquidation or
reorganization of Borrower, or upon or as a result of the appointment of a
receiver, intervenor or conservator of, or trustee or similar officer for,
Borrower or any substantial part of its property, or otherwise, all as though
such payments had not been made.

         THIS GUARANTY SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
LAW OF THE STATE OF NORTH CAROLINA, WITHOUT REGARD TO ITS CONFLICTS OR CHOICE OF
LAW PRINCIPLES. EACH OF GUARANTOR AND LENDER HEREBY WAIVES THE RIGHT TO A TRIAL
BY JURY IN ANY ACTION UNDER THIS GUARANTY OR ANY ACTION ARISING OUT OF THE
TRANSACTIONS CONTEMPLATED HEREBY, REGARDLESS OF WHICH PARTY INITIATES SUCH
ACTION OR ACTIONS.


<PAGE>   46


         IN WITNESS WHEREOF, this Guaranty is entered into this 15th, day of May
2001.

                                        GUARANTOR



                                        ----------------------------------------
                                        Charles Bryant Kountz

WITNESS:



-----------------------------------
Signature


-----------------------------------
Print Name



<PAGE>   47

                         Exhibit A to Personal Guaranty
                                 Promissory Note



<PAGE>   48


                                    EXHIBIT A


$2,800,000.00                                                       May 15, 2001

         PROMISSORY NOTE, dated as of May 15, 2001, by
         Performance Management Inc., a Louisiana corporation,
         in favor of Heafner Tire Group, Inc., a Delaware corporation.
         -------------------------------------------------------------


         FOR VALUE RECEIVED, the undersigned, Performance Management Inc., a
Louisiana corporation (the "Borrower"), hereby promises to pay to the order of
Heafner Tire Group, Inc., a Delaware corporation, (the "Lender"), the principal
sum of $2,800,000.00 together with interest from the date hereof on the unpaid
principal balance of this promissory note (this "Note") at the rate of 7% per
annum, calculated on the basis of a 360 day year for actual days elapsed (the
"Base Rate"). This Note is personally guaranteed by Mr. Charles Bryant Kountz
pursuant to that certain Personal Guaranty dated as of May 15, 2001 (the
"Personal Guaranty").

         The outstanding principal balance of this Note, together with all
accrued and unpaid interest, shall be due and payable in full on May 15, 2002.
This Note may be prepaid in whole or in part at any time or from time to time at
the option of the Borrower without any penalty whatsoever. All prepayments shall
be first applied to accrued interest on the date of such prepayment. The amount
of any prepayment in excess of the accrued interest on the date of such
prepayment shall be applied to reduce the principal balance due hereunder.

         Each of the following events shall constitute an event of default (an
"Event of Default") under this Note:

         (a) The Borrower shall fail to perform any of its obligations,
covenants and agreements set forth in this Note or in the Stock Purchase
Agreement dated as of May 4, 2001 by and among the Borrower, the Lender, Winston
Tire Company and Charles Bryant Kountz, or any other material obligation owed to
the Lender; or

         (b) The Borrower shall be or become insolvent, shall be unable to meet
the Borrower's debts as they mature, or shall file a voluntary petition in
bankruptcy or seeking reorganization or to effect a plan or other arrangement
with creditors, or shall file an answer or other pleading admitting, or shall
fail to deny or contest, the material allegations of an involuntary petition
filed against the Borrower pursuant to any act of Congress relating to
bankruptcy, arrangement or reorganization, or shall be adjudicated a bankrupt or
shall make an assignment for the benefit of creditors generally, or shall apply
for, consent to or acquiesce in the appointment of any receiver or trustee for
all or a substantial part of the Borrower's property or any such receiver or
trustee shall be appointed and shall not be discharged within thirty days after
the date of such appointment.

         Upon the occurrence of one or more of the foregoing Events of Default,
unless such Event of Default shall have been expressly waived in writing by the
Lender, the entire unpaid principal balance of and accrued interest on this Note
shall at once become immediately due and payable at the option of and upon
written notice from the Lender. Upon such acceleration, the Lender may
immediately exercise any and all rights and remedies afforded by this Note, the
Personal Guaranty or applicable law.

         The Borrower promises to pay all costs and expenses, including, but not
limited to, attorneys' fees and disbursements, incurred in the collection or
enforcement hereof.

         Nothing contained in this Note or in any agreements between the
Borrower and the Lender shall be deemed to require the payment by the Borrower
of interest on the indebtedness evidenced by this Note in excess of the amount
which the Borrower may lawfully contract to charge under the usury laws of the
state of North Carolina or any other applicable jurisdiction (the "Maximum Legal
Rate"). All agreements between the


                                       1

<PAGE>   49

Borrower and the Lender deemed to pertain to this Note are expressly limited so
that in no contingency or event shall the amount paid or agreed to be paid to
the Borrower for the use, forbearance or detention of money to be loaned
hereunder exceed the Maximum Legal Rate. If, under any circumstance whatsoever,
the fulfillment of any obligation under this Note or any other agreement between
the Borrower and the Lender deemed to pertain to this Note shall involve
exceeding the Maximum Legal Rate, then the obligation to be fulfilled by the
Borrower shall be reduced by the minimum amount required so that such obligation
shall not exceed the Maximum Legal Rate, provided, however, that if at any time
thereafter the rate of interest payable hereunder is less than the Maximum Legal
Rate, Borrower shall continue to pay interest hereunder at the Maximum Legal
Rate until such time as the total interest received by Lender is equal to the
total interest which would have been received had the interest rate payable
hereunder been (but for operation of this paragraph) the Base Rate. Thereafter,
interest hereunder shall be paid at the Base Rate, unless and until the rate of
interest again exceeds the Maximum Legal Rate, and at that time this paragraph
shall again apply. This paragraph shall control every other provision of this
Note and all other agreements between the Borrower and the Lender deemed to
pertain to this Note.

         The Borrower hereby waives presentment for payment, demand, notice of
demand, notice of nonpayment or dishonor, protest and notice of protest.

         No failure to exercise and no delay in exercising any right, power or
privilege hereunder shall operate as a waiver thereof at the time in question or
any future time, nor shall any single or partial exercise of any right, power or
privilege hereunder preclude any other right, power or privilege. The rights and
remedies herein provided are cumulative and not exclusive of any rights or
remedies provided by law.

         The Borrower may not assign this Note.

         This Note is negotiable and shall inure to the benefit of the Lender
and its successors and permitted assigns. Notwithstanding anything in this Note
to the contrary, the Lender may assign this Note to Fleet Capital Corporation,
as administrative agent for the lenders party from time to time, together with
the Lender and certain of the Lender's affiliates, to a senior secured credit
facility, as additional security for the Lender's obligations thereunder.

         If any provision of this Note is deemed or held to be illegal, invalid
or unenforceable, this Note shall be considered divisible and inoperative as to
such provision solely to the extent it is deemed to be illegal, invalid or
unenforceable, and in all other respects this Note shall remain in full force
and effect.

         THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAW
OF THE STATE OF NORTH CAROLINA. THE BORROWER AND, BY ACCEPTANCE HEREOF, THE
LENDER WAIVE THE RIGHT TO TRIAL BY JURY IN ANY ACTION UNDER THIS NOTE OR ANY
ACTION ARISING OUT OF THE TRANSACTIONS CONTEMPLATED HEREBY, REGARDLESS OF WHICH
PARTY INITIATES SUCH ACTION OR ACTIONS.

                                               PERFORMANCE MANAGEMENT INC.,
                                               a Louisiana corporation

                                               By:
                                                   -----------------------------
                                               Name:  Charles Bryant Kountz
                                               Title: Secretary / Treasurer


                                       2


<PAGE>   50
WINSTON                                                               EXHIBIT D
BALANCE SHEET
30-DEC-00

<TABLE>
<CAPTION>
                                                              ADJUSTING ENTRIES
                                                    30-DEC-00   DR        CR      TOTAL
ASSETS                                              ---------   --        --      -----
<S>                                                  <C>        <C>      <C>      <C>       <C>


                                                                                            ---------------------------------------
Cash                                                 (1,302)    2,164      862         -    Other Current Assets   1347
Accounts Receivable (less allowance for
doubtful accounts of                    589           2,864     1,012      132     3,744    Fixed assets                      1347
Notes Receivable                                          7                            7    To reclass land held for sale to current
                                                                                            investment
                                                                                            ---------------------------------------
Volume Rebates receivable                             2,116              2,116         -
Intercompany receivable                                   -         -                  -
                                                                                            ---------------------------------------
Inventories, net                                     17,868              1,622    16,246    Cash                  2,164
Deferred income taxes                                 2,517       800              3,317    Accounts payable                 2,164
Other current assets                                  1,228     1,568      138     2,658    To reclass negative cash
                                                    --------   -------  -------  --------   ---------------------------------------
  Total current assets                               25,298     5,544    4,870    25,972

                                                                                            ---------------------------------------
Property (at cost)                                   32,331              3,397    28,934    Loss on sale of Disc ops  1,200
Less:  accumulated depreciation - property          (12,422)                     (12,422)   Current Deferred tax asset  800
                                                    --------   -------  -------  --------   Net assets of disc ops           2,000
Property, net                                        19,909         -    3,397    16,512    ---------------------------------------

                                                                                            ---------------------------------------
Goodwill, net of accumulated amortization                 -                            -    Accounts Payable      2,116
Other intangibles, net of accumulated amortization        -                                 Volume Rebates Receivable        2,116
Intercompany investment                                   -                            -    To reclass volume rebates to a/p
                                                                                            ---------------------------------------
Deferred tax assets                                      68                           68
Other assets                                            825                  -       825
                                                    --------   -------  -------  --------
  Total other assets                                    893         -        -       893

TOTAL ASSETS                                         46,100     5,544    8,267    43,377
                                                    ========   =======  =======  ========
</TABLE>




<PAGE>   51

WINSTON
BALANCE SHEET
30-DEC-00

<TABLE>
<CAPTION>
                                           30-DEC-00 ADJUSTING ENTRIESTOTAL
LIABILITIES AND EQUITY                     ---------   DR       CR    -----
                                                       --       --
<S>                                         <C>       <C>      <C>     <C>      <C>
LIABILITIES

Accounts payable                               869    2,116    2,164      917
Accrued liabilities                         18,935    3,074    1,077   16,938
Intercompany payable                        20,541        -    1,745   22,286
Current portion - long term debt (1)            13                         13
                                           --------  -------  ------- -------
  Total current liabilities                 40,358    5,190    4,986   40,154
                                                                               --------------------------------------------------
                                                                               Amortization Expense    1521
Long - term debt                                 2      270    1,521    1,253  Debt                                  1521
Deferred income taxes                            -                          -  To record debt assumed in Tri Valley acquisition to
                                                                               gw (and sub written off)
Other liabilities                            4,235                21    4,256  --------------------------------------------------
                                           --------  -------  ------- -------
  Total liabilities                          4,237      270    1,542    5,509  --------------------------------------------------
                                                                               Debt                     270
STOCKHOLDER'S EQUITY                                                           Other income                           270
                                                                               To record earned reduction based on purchases
                                                                               --------------------------------------------------
Intercompany investment                     47,271                 -   47,271
Common Stock A                                   -                          -
Common Stock B                                   -                          -
Preferred Stock A                                -                          -
Preferred Stock B                                -                          -
Warrants                                         -                          -
Additional Paid in Capital                       -                          -
Notes Receivable (officers)                      -                          -
Retained Earnings                          (45,766)  10,839    7,048  (49,557)
                                           --------  -------  ------- --------
  Total stockholders equity                  1,505   10,839    7,048   (2,286)

TOTAL LIABILITIES AND STOCKHOLDERS EQUITY   46,100   16,299   13,576   43,377
                                           ========  =======  ======= ========

CHECK                                            -                          -
                                                      3,791
</TABLE>

<PAGE>   52

WINSTON
INCOME STATEMENT
YEAR ENDED DECEMBER 30, 2000

<TABLE>
<CAPTION>
                                              QUARTER ENDED ADJUSTING ENTRIES
                                                30-DEC-00   DR      CR     FINAL
                                                ---------   --      --     -----
<S>                                             <C>        <C>      <C>    <C>       <C>
                                                                                     ----------------------------------------------
Net Sales                                       177,762             200    177,962    Depreciation                  2,050
Intercompany sales, net of related discounts          -                          -    Professional fees                     2,050
                                                --------   -----   -----  --------    To reclass write-off of capitalized costs to
  Total sales                                   177,762                    177,962    depreciation
                                                                                     ----------------------------------------------


Cost of Sales                                   108,531    3,422    540    111,413   Current Liabilities               85
                                                --------   -----   -----  --------   SG&A                                      85
  Total costs of sales                          108,531                    111,413   To correct over-accrual for legal expenses at
                                                                                      12/31/00
  Gross Profit                                   69,231                     66,549

Salaries and wages                               38,908            1,571    37,337   Current Liabilities              100
Occupancy and vehicles                           22,510                     22,510   SG&A                                     100
Advertising                                       7,361      138             7,499   To reverse accrual due to client not having
Depreciation and amortization                    39,249    3,571            42,820   support that service was performed in FY '00.
Other                                            23,713      763    4,246   20,230
                                                --------   -----   -----  --------
Special and nonrecurring charges                   (697)                      (697)
                                                                          --------
  Total selling, general and administrative
    before special charge                       131,044                    129,699   Other Current Assets             221
                                                                                     Other Income                             221
  Operating profit                              (61,813)                   (63,150)  To eliminate 12/31/00 credit balance in
                                                                                     suspense account
Interest (expense)                                 (211)              1       (210)
Interest income and net service charge income         -                          -   Current Liabilities                -
Other income (expense)                             (223)            491        268   Other Income                               -
                                                --------   -----   -----  --------   To eliminate 12/31/00 balance in Tire 1
                                                                                     reserve acct
  Income before income taxes                    (62,247)                   (63,092)

Tax provision (benefit)                         (24,899)   1,745      -    (23,154)  Accounts Receivable              150
                                                --------   -----   -----  --------
Loss on sale discontinued ops                              1,200            (1,200)
                                                                                     SG&A                                     150
  Net income before sale of disc ops            (37,348)                   (41,138)  To reduce bad debt reserve for current
                                                ========   =====   =====  ========   Michelin invoices

Retained earnings, beginning                     (8,419)                    (8,419)
                                                                                 -
                                                                          --------
Retained earnings, ending (agrees with b/s)     (45,767)                   (49,557)  SG&A                             164
                                                ========                  ========   Current Liabilities                      164
                                                                                     To properly state PQS deferred income at
       Check                                         (1)                         -   12/31/00


       EBITDA                                   (23,484)                   (20,759)  SG&A                             216
                                                ========                  ========   Current Liabilties                       216
                                                                                     To properly eliminate unidentified debit
                                                                                     balances in accrual


                                                                                     COS                            1,300
                                                                                     SG&A                                     527
                                                                                     SG&A                                     527
                                                                                     SG&A                                     246
                                                                                     To properly record credit memos received from
                                                                                     Michelin for Tire Company #9 and DST system


                                                                                     Current Liabilities              441
                                                                                                                   ------
                                                                                     SG&A                              88
                                                                                     COS                                      529
                                                                                     To eliminate unsubstantiated accruals


                                                                                     Current Liabilities              153
                                                                                     SG&A                                     153
                                                                                     To eliminate unsubstantiated accrual


                                                                                     Current Liabilities              285
                                                                                     SG&A                                       9
                                                                                     COS                                        9
                                                                                     COS                                        2
                                                                                     SG&A                                      22
                                                                                     SG&A                                       9
                                                                                     Current Liabilities                        7
                                                                                     Current Liabilities                      169
                                                                                     Current Liabilities                       58
                                                                                     To eliminate accruals recorded twice
</TABLE>


<PAGE>   53

SG&A                                      132
Accounts Receivable                                 132
To reserve for uncollectible accounts as a result of A/R
sample error projected to population


Current Liabilities                        67
SG&A                                                 67
To eliminate unsubstantiated balance in accrual account


Current Liabilities                       101
SG&A                                                101
To eliminate unidentified accrual in sales tax payable account


Current Liabilities                        50
Net Fixed Assets                                     50
To eliminate accrual for equipment not received or paid for
at 12/31/00


Current Liabilities                        89
Salaries and wages                                   89
To properly reflect bonus accrual at 12/31/00


Current Liabilities                       221
Other Liabilities                                    21
Sales                                               200
To properly state deferred BTSA revenue at 12/31/00



Bank draft (credit card receivable) (1030) -
Bad debt expense (8830)                               -
To properly reflect credit card receivables at 12/31/00


Current Liabilities                     1,482
Salaries and wages                                1,482
To properly reflect vacation liability at 12/31/00


COS                                       300
Current Liabilities                                 300
To accrue for free oil change liability at 12/31/00


Cost of sales
Inventory reserve - parts


Inventory reserve - tires
Cost of sales


Accounts Receivable                       862
Cash                                                862
To properly reflect credit card receivables at 12/31/00



COS                                       200
SG&A                                                200
To properly state COGS and bad debt expense for FY '00.


Cash over/short expense (7810SG&A       252,705
Bad debt expense (8830)      SG&A                (252,705)
To properly reflect write-off of customer #90000

AA Audit Adjustments

S, G & A                                  163
Accrued Liabilities                                 163
To accrue for private lable warranty exposure

Co-op Income                 ADV          138
Co-op Receivable                                    138
To Properly state co-op receivable balance at 12/31/00

COS                                                337
Inventory                                                     337
To reduce inventory value for the MAST 7% alliance program

COS                                     1,285
Inventory Reserve-parts                           1,285
To adjust inventory parts reserve

Interest Expense                                      1
To plug RE variance

Intercompany Rec Corp                       -
Deferred Tax Benefit - Winston                        -
current Provision                       23,920          corp
Noncurrent Deferred tax asset           20,621          corp
Current deferred tax asset                          436 corp
Income tax payable                               25,280 corp
Intercompany Winston                             18,825 corp

Noncurrent Deferred tax asset             927           corp
Tax Provision                                       927 corp

Current deferred tax asset              2,000           corp
Noncurrent Deferred tax asset                     2,000 corp

Winston Deferred tax provision          1,745
Intercompany payable corp                          1745
<PAGE>   54
                                                                       EXHIBIT E

                              Winston Tire Company
                                 Lease Abstract
                            Current As Of May 3, 2001
<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------------
                                      Core/Non-core
 Store         Location                Terminated/  Lease Begin   Lease End            Options           Increase Dates
                                        Assigned
----------------------------------------------------------------------------------------------------------------------------------
<S>     <C>                         <C>             <C>           <C>             <C>              <C>
  001          GLENDALE                   Core       3/16/1976    3/15/2011           2-5 YR OPT           3/16/2006
----------------------------------------------------------------------------------------------------------------------------------
  003          INGLEWOOD                  Core       4/1/1986     3/31/2006              NONE               4/1/2001
----------------------------------------------------------------------------------------------------------------------------------
  004         CANOGA PARK                 Core       2/4/1977     2/3/2002            2-5 YR OPT               NONE
----------------------------------------------------------------------------------------------------------------------------------
  006          PASADENA                   Core       6/1/1988     5/31/2008           2-5 YR OPT             6/01,06
----------------------------------------------------------------------------------------------------------------------------------
  007           DOWNEY                    Core       6/22/1984    6/21/2004           1-5 YR OPT               NONE
----------------------------------------------------------------------------------------------------------------------------------
  008          RIVERSIDE                  Core       10/1/1982    9/30/2002              NONE                  NONE
----------------------------------------------------------------------------------------------------------------------------------
  010          VAN NUYS                   Core       2/4/1977     2/3/2002           2-5 YR OPT                NONE
----------------------------------------------------------------------------------------------------------------------------------
  012         BAKERSFIELD                 Core       10/26/1987   10/25/2002          2-6 YR OPT               NONE
----------------------------------------------------------------------------------------------------------------------------------
  015         MONTEBELLO                  Core       8/1/1977     7/31/2002           1-5 YR OPT               NONE
----------------------------------------------------------------------------------------------------------------------------------
  016       SAN BERNARDINO                Core       9/1/1976     8/31/2011              NONE                9/1/01,06
----------------------------------------------------------------------------------------------------------------------------------
  019         LA CIENEGA                  Core       9/1/1991     8/31/2001           1-5 YR OPT               NONE
----------------------------------------------------------------------------------------------------------------------------------
  021           VENTURA                   Core       2/15/1984    2/14/2009              NONE                2/15/2004
----------------------------------------------------------------------------------------------------------------------------------
  023        N. LONG BEACH                Core       7/1/2000     6/30/2010          1-10 YR OPT    7/1/01,& YEARLY THEREAFTER
----------------------------------------------------------------------------------------------------------------------------------
  028           BURBANK                   Core       9/28/1976    9/27/2011              NONE       10/1/01, 3% Annual Thereafter
----------------------------------------------------------------------------------------------------------------------------------
  036       CLAIREMONT MESA               Core       10/25/1990   10/24/2005          1-5 YR OPT               NONE
----------------------------------------------------------------------------------------------------------------------------------
  038        ALHAMBRA-BLDG.               Core       2/1/1999     1/31/2009           1-5 YR OPT             2/1/2004
----------------------------------------------------------------------------------------------------------------------------------
            ALHAMBRA-GROUND                          5/1/1992     1/31/2004           2-5 YR OPT            12/31/2004
----------------------------------------------------------------------------------------------------------------------------------
  039        GRANADA HILLS                Core       5/16/1973    1/15/2008              NONE               1/16/2003
----------------------------------------------------------------------------------------------------------------------------------
  040           CORONA                    Core       3/1/1974     2/28/2004              NONE                  NONE
----------------------------------------------------------------------------------------------------------------------------------
  041      HUNTINGTON BEACH               Core       12/1/1973    11/30/2003             NONE                  NONE
----------------------------------------------------------------------------------------------------------------------------------
  042         EAGLE ROCK                  Core       10/1/1973    9/30/2008              NONE               10/1/2003
----------------------------------------------------------------------------------------------------------------------------------
  043           ORANGE                    Core       1/16/1999    1/15/2009           1-5 YR OPT    1/16/02,03,04,05,06,07,08
----------------------------------------------------------------------------------------------------------------------------------
  044          WHITTIER                   Core       1/15/1975    1/14/2002           1-5 YR OPT               NONE
----------------------------------------------------------------------------------------------------------------------------------
  045           VISALIA                   Core       5/1/1975     4/30/2005           1-5 YR OPT               NONE
----------------------------------------------------------------------------------------------------------------------------------
  047          SOUTH GATE                 Core       12/1/1981    11/30/2001          1-5 YR OPT               NONE
----------------------------------------------------------------------------------------------------------------------------------
  049          SEAL BEACH                 Core       1/1/1976     12/31/2001             NONE                  NONE
----------------------------------------------------------------------------------------------------------------------------------
  053     SACRAMENT0-WATT ST              Core       12/1/1983    11/30/2003             NONE                  NONE
----------------------------------------------------------------------------------------------------------------------------------
  054        LA CRESCENTA                 Core       9/1/1976     8/31/2016           2-5 YR OPT           9/01,06,11
----------------------------------------------------------------------------------------------------------------------------------
  055         SACRAMENTO                  Core       6/1/1989     5/31/2009           2-5 YR OPT             6/02,07
----------------------------------------------------------------------------------------------------------------------------------
  056      SANTA FE SPRINGS               Core       4/1/1977     3/31/2002              NONE                  NONE
----------------------------------------------------------------------------------------------------------------------------------
  057          ESCONDIDO                  Core       6/1/1993     5/31/2003           2-5 YR OPT            6/1/2002
----------------------------------------------------------------------------------------------------------------------------------
  060        NO. HOLLYWOOD                Core       1/4/1977     1/3/2002            1-5 YR OPT               NONE
----------------------------------------------------------------------------------------------------------------------------------
  061          CRENSHAW                   Core       8/3/1982     8/2/2002            2-5 YR OPT               NONE
----------------------------------------------------------------------------------------------------------------------------------
  063           NEWHALL                   Core       12/1/1986    11/30/2001             NONE                  NONE
----------------------------------------------------------------------------------------------------------------------------------
  065           ANAHEIM                   Core       9/9/1977     9/8/2002            1-5 YR OPT               NONE
----------------------------------------------------------------------------------------------------------------------------------
  066      SACRAMENTO-AUBURN              Core       5/1/1978     5/1/2003            1-5 YR OPT               NONE
----------------------------------------------------------------------------------------------------------------------------------
  067       TORRANCE - Bldg               Core       6/25/1979    6/24/2004           1-5 YR OPT               NONE
----------------------------------------------------------------------------------------------------------------------------------
         TORRANCE - Warehouse                        3/15/1988    6/24/2004           1-5 YR OPT               NONE
----------------------------------------------------------------------------------------------------------------------------------
  068          HOLLYWOOD                  Core       1/12/1978    1/11/2003           1-5 YR OPT               NONE
----------------------------------------------------------------------------------------------------------------------------------
  070      FRESNO-BLACKSTONE              Core       8/1/1977     7/31/2002           1-5 YR OPT               NONE
----------------------------------------------------------------------------------------------------------------------------------
  073          MONROVIA                   Core       1/1/1978     12/31/2002          1-5 YR OPT               NONE
----------------------------------------------------------------------------------------------------------------------------------
  075        LAGUNA HILLS                 Core       3/9/1979     3/7/2004            1-5 YR OPT        2% of gross sales
----------------------------------------------------------------------------------------------------------------------------------
  076           RIALTO                    Core       5/1/1978     4/30/2003           1-5 YR OPT               NONE
----------------------------------------------------------------------------------------------------------------------------------
  077           NORWALK                   Core       1/5/1979     12/31/2009          2-5 YR OPT      1/1/02,04,06,08 CPI
----------------------------------------------------------------------------------------------------------------------------------
  078           MODESTO                   Core       1/2/1979     12/31/2003          1-5 YR OPT               NONE
----------------------------------------------------------------------------------------------------------------------------------
  081          CAMPBELL                   Core       2/5/1979     2/4/2004            1-5 YR OPT               NONE
----------------------------------------------------------------------------------------------------------------------------------
  082     SACTO - FLORIN RD.              Core       11/1/1995    11/1/2010           2-5 YR OPT            11/1/2005
----------------------------------------------------------------------------------------------------------------------------------
  083    SAN JOSE - STORY RD.             Core       2/26/1979    2/25/2004           1-5 YR OPT               NONE
----------------------------------------------------------------------------------------------------------------------------------
  085        SAN FERNANDO                 Core       2/19/1979    2/18/2004           1-5 YR OPT               NONE
----------------------------------------------------------------------------------------------------------------------------------
  086         SANTA MARIA                 Core       9/1/1995     8/31/2010           2-5 YR OPT            9/1/2005
----------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------

 Store         Location               CPI Index                             Comments

------------------------------------------------------------------------------------------------------
<S>     <C>                         <C>                   <C>
  001          GLENDALE               U.S. City
------------------------------------------------------------------------------------------------------
  003          INGLEWOOD             LA/Riverside
------------------------------------------------------------------------------------------------------
  004         CANOGA PARK             U.S. City
------------------------------------------------------------------------------------------------------
  006          PASADENA              LA/Riverside
------------------------------------------------------------------------------------------------------
  007           DOWNEY               LA/Riverside
------------------------------------------------------------------------------------------------------
  008          RIVERSIDE             LA/Riverside
------------------------------------------------------------------------------------------------------
  010          VAN NUYS               U.S. City
------------------------------------------------------------------------------------------------------
  012         BAKERSFIELD             U.S. City
------------------------------------------------------------------------------------------------------
  015         MONTEBELLO              U.S. City
------------------------------------------------------------------------------------------------------
  016       SAN BERNARDINO            Schedule                    9/1/01 increase to $4,200
------------------------------------------------------------------------------------------------------
  019         LA CIENEGA             LA/Riverside                  Option Expires 6/30/01
------------------------------------------------------------------------------------------------------
  021           VENTURA               Schedule
------------------------------------------------------------------------------------------------------
  023        N. LONG BEACH            Schedule
------------------------------------------------------------------------------------------------------
  028           BURBANK               Schedule                    10/1/01 increase to $4,000
------------------------------------------------------------------------------------------------------
  036       CLAIREMONT MESA          San Diego
------------------------------------------------------------------------------------------------------
  038        ALHAMBRA-BLDG.          15% Fixed
------------------------------------------------------------------------------------------------------
            ALHAMBRA-GROUND          LA/Riverside
------------------------------------------------------------------------------------------------------
  039        GRANADA HILLS           LA/Riverside
------------------------------------------------------------------------------------------------------
  040           CORONA               LA/Riverside
------------------------------------------------------------------------------------------------------
  041      HUNTINGTON BEACH           Schedule
------------------------------------------------------------------------------------------------------
  042         EAGLE ROCK             LA/Riverside
------------------------------------------------------------------------------------------------------
  043           ORANGE                Schedule
------------------------------------------------------------------------------------------------------
  044          WHITTIER               Schedule
------------------------------------------------------------------------------------------------------
  045           VISALIA               Schedule
------------------------------------------------------------------------------------------------------
  047          SOUTH GATE             Schedule                    Option Expires 9/1/01
------------------------------------------------------------------------------------------------------
  049          SEAL BEACH            LA/Riverside
------------------------------------------------------------------------------------------------------
  053     SACRAMENT0-WATT ST         SF/Oakland
------------------------------------------------------------------------------------------------------
  054        LA CRESCENTA            LA/Riverside
------------------------------------------------------------------------------------------------------
  055         SACRAMENTO              U.S. City
------------------------------------------------------------------------------------------------------
  056      SANTA FE SPRINGS          LA/Riverside
------------------------------------------------------------------------------------------------------
  057          ESCONDIDO             U.S. City
------------------------------------------------------------------------------------------------------
  060        NO. HOLLYWOOD           LA/Riverside
------------------------------------------------------------------------------------------------------
  061          CRENSHAW              LA/Riverside
------------------------------------------------------------------------------------------------------
  063           NEWHALL               U.S. City
------------------------------------------------------------------------------------------------------
  065           ANAHEIM               U.S. City
------------------------------------------------------------------------------------------------------
  066      SACRAMENTO-AUBURN         LA/Riverside
------------------------------------------------------------------------------------------------------
  067       TORRANCE - Bldg          LA/Riverside
------------------------------------------------------------------------------------------------------
         TORRANCE - Warehouse        LA/Riverside
------------------------------------------------------------------------------------------------------
  068          HOLLYWOOD              U.S. City
------------------------------------------------------------------------------------------------------
  070      FRESNO-BLACKSTONE          U.S. City
------------------------------------------------------------------------------------------------------
  073          MONROVIA              LA/Riverside
------------------------------------------------------------------------------------------------------
  075        LAGUNA HILLS            LA/Riverside
------------------------------------------------------------------------------------------------------
  076           RIALTO               LA/Riverside
------------------------------------------------------------------------------------------------------
  077           NORWALK               U.S. City
------------------------------------------------------------------------------------------------------
  078           MODESTO               SF/Oakland
------------------------------------------------------------------------------------------------------
  081          CAMPBELL               SF/Oakland
------------------------------------------------------------------------------------------------------
  082     SACTO - FLORIN RD.          U.S. City
------------------------------------------------------------------------------------------------------
  083    SAN JOSE - STORY RD.         SF/Oakland
------------------------------------------------------------------------------------------------------
  085        SAN FERNANDO            LA/Riverside
------------------------------------------------------------------------------------------------------
  086         SANTA MARIA              Schedule
------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------

 Store         Location            Mo Rent         Cam Imp.      Tax Imp.    Sq. Ft.   Bays    CPI Cap   R & M   Roof  RE Tax   Ins

------------------------------------------------------------------------------------------------------------------------------------
<S>     <C>                       <C>              <C>           <C>         <C>       <C>     <C>       <C>     <C>   <C>      <C>
  001          GLENDALE           $ 5,860.00        $0.00         $0.00       5,000      6       25%      TEN    TEN     TEN    TEN
------------------------------------------------------------------------------------------------------------------------------------
  003          INGLEWOOD          $ 3,900.00        $0.00         $0.00       5,000      5      NONE      TEN    TEN     TEN    TEN
------------------------------------------------------------------------------------------------------------------------------------
  004         CANOGA PARK         $ 3,139.08        $0.00         $0.00       3,500      8       25%      TEN    TEN     TEN    TEN
------------------------------------------------------------------------------------------------------------------------------------
  006          PASADENA           $ 5,736.88        $0.00         $0.00       5,500      6       25%      TEN    TEN     TEN    TEN
------------------------------------------------------------------------------------------------------------------------------------
  007           DOWNEY            $ 4,720.06        $0.00         $0.00       4,800      5       25%      TEN    TEN     TEN    TEN
------------------------------------------------------------------------------------------------------------------------------------
  008          RIVERSIDE          $ 5,272.96        $0.00         $0.00       6,000      8       15%      TEN    TEN     TEN    TEN
------------------------------------------------------------------------------------------------------------------------------------
  010          VAN NUYS           $ 3,226.67        $0.00         $0.00       3,400      5       25%      TEN    TEN     TEN    TEN
------------------------------------------------------------------------------------------------------------------------------------
  012         BAKERSFIELD         $ 4,546.70        $0.00         $0.00       7,000      8       15%      TEN    TEN     TEN    TEN
------------------------------------------------------------------------------------------------------------------------------------
  015         MONTEBELLO          $ 1,500.00        $0.00         $0.00       4,000      6      NONE      TEN    TEN     TEN    TEN
------------------------------------------------------------------------------------------------------------------------------------
  016       SAN BERNARDINO        $ 3,328.14        $0.00         $0.00       4,500      6      NONE      TEN    TEN     TEN    TEN
------------------------------------------------------------------------------------------------------------------------------------
  019         LA CIENEGA          $ 7,898.94        $0.00         $0.00       4,000      7       15%      TEN     LL     TEN    TEN
------------------------------------------------------------------------------------------------------------------------------------
  021           VENTURA           $ 7,250.00        $0.00         $0.00       5,800      8      NONE      TEN     LL     TEN    TEN
------------------------------------------------------------------------------------------------------------------------------------
  023        N. LONG BEACH        $ 5,000.00        $0.00         $0.00       4,800      7      NONE      TEN    TEN     TEN    TEN
------------------------------------------------------------------------------------------------------------------------------------
  028           BURBANK           $ 1,923.44        $0.00         $0.00       3,500      6       20%      TEN    TEN     TEN    TEN
------------------------------------------------------------------------------------------------------------------------------------
  036       CLAIREMONT MESA       $ 10,274.16     $1,144.41       $0.00       5,200      8       15%      TEN    TEN     TEN    TEN
------------------------------------------------------------------------------------------------------------------------------------
  038        ALHAMBRA-BLDG.       $ 5,179.00        $0.00         $0.00       3,500      6      NONE      TEN    TEN     TEN    TEN
------------------------------------------------------------------------------------------------------------------------------------
            ALHAMBRA-GROUND       $ 2,251.78        $0.00         $0.00       3,500      0      NONE      TEN    N/A     TEN    TEN
------------------------------------------------------------------------------------------------------------------------------------
  039        GRANADA HILLS        $ 4,958.23        $0.00         $0.00       4,800      6       10%      TEN    TEN     TEN    TEN
------------------------------------------------------------------------------------------------------------------------------------
  040           CORONA            $ 4,183.42        $0.00         $0.00       4,500      6       25%      TEN     LL     TEN    TEN
------------------------------------------------------------------------------------------------------------------------------------
  041      HUNTINGTON BEACH       $ 8,724.50        $0.00         $0.00       4,000      3      NONE      TEN    TEN     TEN    TEN
------------------------------------------------------------------------------------------------------------------------------------
  042         EAGLE ROCK          $ 4,175.05        $0.00         $0.00       3,800      3       15%      TEN    TEN     LL     TEN
------------------------------------------------------------------------------------------------------------------------------------
  043           ORANGE            $ 5,675.00        $0.00         $0.00       3,600      4      NONE      TEN    TEN     TEN    TEN
------------------------------------------------------------------------------------------------------------------------------------
  044          WHITTIER           $ 3,500.00        $0.00         $0.00       3,800      4      NONE      TEN    TEN     TEN    TEN
------------------------------------------------------------------------------------------------------------------------------------
  045           VISALIA           $ 4,750.00        $0.00         $0.00       3,800      4       15%      TEN     LL     TEN    TEN
------------------------------------------------------------------------------------------------------------------------------------
  047          SOUTH GATE         $ 1,760.00        $0.00         $0.00       3,800      4      NONE      TEN     LL     TEN    TEN
------------------------------------------------------------------------------------------------------------------------------------
  049          SEAL BEACH         $ 2,691.72       $566.00        $0.00       3,800      4       25%      TEN    TEN     TEN    TEN
------------------------------------------------------------------------------------------------------------------------------------
  053     SACRAMENT0-WATT ST      $ 3,411.60        $0.00         $0.00       3,800      5       25%      TEN    TEN     TEN    TEN
------------------------------------------------------------------------------------------------------------------------------------
  054        LA CRESCENTA         $ 2,758.11        $0.00         $0.00       3,500      6       20%      TEN    TEN     TEN    TEN
------------------------------------------------------------------------------------------------------------------------------------
  055         SACRAMENTO          $ 5,000.00        $0.00         $0.00       5,200      8       15%      TEN    TEN     TEN    TEN
------------------------------------------------------------------------------------------------------------------------------------
  056      SANTA FE SPRINGS       $ 3,073.60        $0.00         $0.00       3,600      4       20%      TEN    TEN     TEN    TEN
------------------------------------------------------------------------------------------------------------------------------------
  057          ESCONDIDO          $ 4,929.63        $0.00         $0.00       5,000      9       15%     T/LL*    LL     TEN    TEN
------------------------------------------------------------------------------------------------------------------------------------
  060        NO. HOLLYWOOD        $ 3,144.02        $0.00         $0.00       4,000      6      12.5%     TEN    TEN     TEN    TEN
------------------------------------------------------------------------------------------------------------------------------------
  061          CRENSHAW           $ 3,184.21        $0.00         $0.00       5,000      6       25%      TEN    TEN     TEN    TEN
------------------------------------------------------------------------------------------------------------------------------------
  063           NEWHALL           $ 6,120.00        $0.00         $0.00       7,200      6       15%      TEN     LL     TEN    TEN
------------------------------------------------------------------------------------------------------------------------------------
  065           ANAHEIM           $ 2,620.86        $0.00         $0.00       3,800      4       25%      TEN    TEN     TEN    TEN
------------------------------------------------------------------------------------------------------------------------------------
  066      SACRAMENTO-AUBURN      $ 3,859.01        $0.00         $0.00       4,500      6       25%      TEN    TEN     TEN    TEN
------------------------------------------------------------------------------------------------------------------------------------
  067       TORRANCE - Bldg       $ 3,052.68        $0.00         $0.00       5,000      7       25%      TEN    TEN     TEN    TEN
------------------------------------------------------------------------------------------------------------------------------------
         TORRANCE - Warehouse     $ 3,527.40        $0.00         $0.00                          25%      TEN     LL     TEN    TEN
------------------------------------------------------------------------------------------------------------------------------------
  068          HOLLYWOOD          $ 2,960.11        $0.00         $0.00       4,000      4       25%      TEN    TEN     TEN    TEN
------------------------------------------------------------------------------------------------------------------------------------
  070      FRESNO-BLACKSTONE      $ 3,162.72        $0.00         $0.00       3,800      5       25%      TEN    TEN     TEN    TEN
------------------------------------------------------------------------------------------------------------------------------------
  073          MONROVIA           $ 2,185.96        $0.00         $0.00       4,300      6       25%      TEN    TEN     TEN    TEN
------------------------------------------------------------------------------------------------------------------------------------
  075        LAGUNA HILLS         $ 4,717.84        $0.00         $0.00       3,800      5       N/A      TEN    TEN     TEN    TEN
------------------------------------------------------------------------------------------------------------------------------------
  076           RIALTO            $ 3,139.71        $0.00         $0.00       3,800      6       25%      TEN    TEN     TEN    TEN
------------------------------------------------------------------------------------------------------------------------------------
  077           NORWALK           $ 5,300.00       $750.00        $0.00       3,800      4       6%       TEN     LL     TEN    TEN
------------------------------------------------------------------------------------------------------------------------------------
  078           MODESTO           $ 3,895.75        $0.00         $0.00       4,200      6       25%      TEN    TEN     TEN    TEN
------------------------------------------------------------------------------------------------------------------------------------
  081          CAMPBELL           $ 3,240.81        $0.00         $0.00       3,900      4      NONE      TEN    TEN     TEN    TEN
------------------------------------------------------------------------------------------------------------------------------------
  082     SACTO - FLORIN RD.      $ 4,245.38        $0.00         $0.00       3,900      6       15%      TEN    TEN     TEN    TEN
------------------------------------------------------------------------------------------------------------------------------------
  083    SAN JOSE - STORY RD.     $ 3,563.88        $0.00         $0.00       4,000      4      NONE      TEN    TEN     TEN    TEN
------------------------------------------------------------------------------------------------------------------------------------
  085        SAN FERNANDO         $ 2,815.85        $0.00         $0.00       3,800      7      NONE      TEN    TEN     TEN    TEN
------------------------------------------------------------------------------------------------------------------------------------
  086         SANTA MARIA         $ 4,800.00        $0.00         $0.00       4,500      4       15%      TEN    TEN     TEN    TEN
------------------------------------------------------------------------------------------------------------------------------------

                                                                      This Lease Abstract does not contain any information regarding
                     contingent liabilities or indemnification provisions. Please review each lease independently for such purposes.
</TABLE>
                                       1
<PAGE>   55

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------------
                                      Core/Non-core
 Store         Location                Terminated/  Lease Begin   Lease End            Options           Increase Dates
                                        Assigned
----------------------------------------------------------------------------------------------------------------------------------
<S>     <C>                          <C>            <C>           <C>             <C>              <C>
  091            INDIO                    Core       2/1/1992     1/31/2012           2-5 YR OPT          2/2002,2007
----------------------------------------------------------------------------------------------------------------------------------
  093           FREMONT                   Core       2/1/1979     1/31/2004              NONE                NONE
----------------------------------------------------------------------------------------------------------------------------------
  094           BARSTOW                   Core       12/1/1979    11/30/2004             NONE                NONE
----------------------------------------------------------------------------------------------------------------------------------
  095     SAN JOSE-SAN CARLOS             Core       12/12/1980   12/11/2005          1-5 YR OPT   12/12/2000-Arbitration Underway
----------------------------------------------------------------------------------------------------------------------------------

----------------------------------------------------------------------------------------------------------------------------------
  098           UPLAND                    Core       2/1/1980     1/31/2005           1-5 YR OPT             NONE
----------------------------------------------------------------------------------------------------------------------------------
  100          SAN BRUNO                  Core       9/1/1979     11/30/2004          2-5 YR OPT             NONE
----------------------------------------------------------------------------------------------------------------------------------
  104        REDWOOD CITY                 Core       2/1/1980     1/31/2005           2-5 YR OPT             NONE
----------------------------------------------------------------------------------------------------------------------------------
  105           CARSON                    Core       3/24/1981    3/22/2006              NONE          3/23/02,03,04,05
----------------------------------------------------------------------------------------------------------------------------------
  107           MILPITAS                  Core       4/15/1981    4/14/2006              NONE          4/15/02,03,04,05
----------------------------------------------------------------------------------------------------------------------------------
  112      SAN JOSE-MONTEREY              Core       2/5/1982     2/4/2002               NONE               NONE
----------------------------------------------------------------------------------------------------------------------------------
  117           CONCORD                   Core       3/20/1984    3/15/2005              NONE             1/1/2002
----------------------------------------------------------------------------------------------------------------------------------
  118         ORANGEVALE                  Core       3/16/1981    3/15/2006              NONE               NONE
----------------------------------------------------------------------------------------------------------------------------------
  119       HAYWARD-MISSION               Core       10/1/1981    9/30/2004              NONE               NONE
----------------------------------------------------------------------------------------------------------------------------------
  120            LODI                     Core       1/1/1981     11/30/2005          2-5 YR OPT      12/1/01,02,03,04
----------------------------------------------------------------------------------------------------------------------------------
  127          ENCINITAS                  Core       10/1/1991    9/30/2006           1-5 YR OPT         10/1/2001
----------------------------------------------------------------------------------------------------------------------------------
  128          CALEXICO                   Core       2/22/1982    2/21/2002           2-5 YR OPT            NONE
----------------------------------------------------------------------------------------------------------------------------------
  137         TEMPLE CITY                 Core       3/15/1978    3/14/2003              NONE               NONE
----------------------------------------------------------------------------------------------------------------------------------
  138      WEST LOS ANGELES               Core       9/1/1983     8/31/2001              NONE               NONE
----------------------------------------------------------------------------------------------------------------------------------
  140     SAN DIEGO - GARNET              Core       7/16/1984    7/16/2004              NONE            7/16/2002
----------------------------------------------------------------------------------------------------------------------------------
  141        THOUSAND OAKS                Core       12/29/1984   12/31/2004          1-5 YR OPT         1/1/2003
----------------------------------------------------------------------------------------------------------------------------------
  142         EL CERRITO                  Core       9/1/1983     8/31/2003              NONE            9/1/2001
----------------------------------------------------------------------------------------------------------------------------------
  143          DALY CITY                  Core       4/1/1992     3/31/2003              NONE              NONE
----------------------------------------------------------------------------------------------------------------------------------
  146           RESEDA                    Core       3/26/1984    3/25/2004           1-5 YR OPT           NONE
----------------------------------------------------------------------------------------------------------------------------------
  148       CITRUS HEIGHTS                Core       9/1/1985     8/31/2005           2-5 YR OPT           NONE
----------------------------------------------------------------------------------------------------------------------------------
  154          PETALUMA                   Core       4/16/1985    4/30/2000*       *MONTH TO MONTH         NONE
----------------------------------------------------------------------------------------------------------------------------------
  156            BREA                     Core       8/1/1984     7/31/2001              NONE              NONE
----------------------------------------------------------------------------------------------------------------------------------
  158           CLOVIS                    Core       1/1/1985     12/31/2004          2-5 YR OPT           NONE
----------------------------------------------------------------------------------------------------------------------------------
  162    MORENO VALLEY - Bldg             Core       1/12/1987    1/11/2012           2-5 YR OPT           NONE
----------------------------------------------------------------------------------------------------------------------------------
         MORENO VALLEY - Pkg Lot                     9/15/1996    1/11/2012           2-5 YR OPT           NONE
----------------------------------------------------------------------------------------------------------------------------------
  163       CATHEDRAL CITY                Core       8/13/1986    8/12/2001           2-5 YR OPT           NONE
----------------------------------------------------------------------------------------------------------------------------------
  164            POWAY                    Core       12/20/1985   12/19/2005          2-5 YR OPT        12/20/2003
----------------------------------------------------------------------------------------------------------------------------------
  166          CLAREMONT                  Core       9/1/1986     8/31/2001           2-5 YR OPT           NONE
----------------------------------------------------------------------------------------------------------------------------------
  167            VISTA                    Core       12/22/1986   12/21/2003          2-3 YR OPT        12/22/2001
----------------------------------------------------------------------------------------------------------------------------------
  170        LAKE ELSINORE                Core       11/3/1988    12/31/2003          2-5 YR OPT        11/3/2003
----------------------------------------------------------------------------------------------------------------------------------
  171         BAKERSFIELD                 Core       11/8/1988    12/31/2007          2-5 YR OPT     11/1/2003,2006
----------------------------------------------------------------------------------------------------------------------------------
  174          HESPERIA                   Core       4/3/1989     4/2/2004           1-5 YR OPT            NONE
----------------------------------------------------------------------------------------------------------------------------------
  175           PERRIS                    Core       3/9/1991     3/8/2006           2-5 YR OPT           Mar-03
----------------------------------------------------------------------------------------------------------------------------------
  177      SACRAMENTO -WATT               Core       2/10/1989    2/8/2004           1-5 YR OPT         7/9/2001
----------------------------------------------------------------------------------------------------------------------------------
  179    SAN DIEGO - MIDWAY DR.           Core       4/17/1989    4/17/2002           2-5 YR OPT           NONE
----------------------------------------------------------------------------------------------------------------------------------
  181         COSTA MESA                  Core       10/1/1989    9/30/2004           1-5 YR OPT       10/1/2002
----------------------------------------------------------------------------------------------------------------------------------
  182          PALMDALE                   Core       4/11/1990    4/10/2005           1-5 YR OPT           NONE
----------------------------------------------------------------------------------------------------------------------------------
  183          STOCKTON                   Core       8/18/1990    8/31/2005           2-5 YR OPT           NONE
----------------------------------------------------------------------------------------------------------------------------------
  189           FRESNO                    Core       1/30/1992    1/29/2007           1-5 YR OPT       1/30/2004
----------------------------------------------------------------------------------------------------------------------------------
  191         CHINO HILLS                 Core       3/25/1992    3/30/2002           1-5 YR OPT           NONE
----------------------------------------------------------------------------------------------------------------------------------
  192        MISSION GORGE                Core       12/1/1990    3/31/2006           1-5 YR OPT           NONE
----------------------------------------------------------------------------------------------------------------------------------
  196         LAKE FOREST                 Core       9/4/1992     8/31/2008           1-5 YR OPT       9/1/2003
----------------------------------------------------------------------------------------------------------------------------------
  197   ELK GROVE - Existing Store        Core       1/25/1993    1/24/2008           2-5 YR OPT           NONE
----------------------------------------------------------------------------------------------------------------------------------
         ELK GROVE - Addition                        4/15/1997    7/14/2003       1-4 YR 6 MO 9 DAYS       NONE
----------------------------------------------------------------------------------------------------------------------------------
  199           ROCKLIN                   Core       7/22/1993    7/21/2008           2-5 YR OPT       7/22/2003
----------------------------------------------------------------------------------------------------------------------------------
  200          SUNNYVALE                  Core       4/15/1992    4/14/2002           2-5 YR OPT       4/15/2001
----------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------

 Store         Location               CPI Index                             Comments

------------------------------------------------------------------------------------------------------
<S>     <C>                         <C>                   <C>
  091            INDIO                      NONE
------------------------------------------------------------------------------------------------------
  093           FREMONT                  SF/Oakland
------------------------------------------------------------------------------------------------------
  094           BARSTOW                 LA/Riverside
------------------------------------------------------------------------------------------------------
  095     SAN JOSE-SAN CARLOS            SF/Oakland           Arbitration to Determine Fair-
------------------------------------------------------------------------------------------------------
                                                              Market Value.  Min of $6,840
------------------------------------------------------------------------------------------------------
  098           UPLAND                  LA/Riverside
------------------------------------------------------------------------------------------------------
  100          SAN BRUNO                 SF/Oakland
------------------------------------------------------------------------------------------------------
  104        REDWOOD CITY                SF/Oakland
------------------------------------------------------------------------------------------------------
  105           CARSON                    Schedule
------------------------------------------------------------------------------------------------------
  107           MILPITAS                  Schedule
------------------------------------------------------------------------------------------------------
  112      SAN JOSE-MONTEREY             Schedule
------------------------------------------------------------------------------------------------------
  117           CONCORD                 SF/Oakland
------------------------------------------------------------------------------------------------------
  118         ORANGEVALE                 U.S. City
------------------------------------------------------------------------------------------------------
  119       HAYWARD-MISSION              Schedule
------------------------------------------------------------------------------------------------------
  120            LODI                    Schedule
------------------------------------------------------------------------------------------------------
  127          ENCINITAS              LA/Riverside
------------------------------------------------------------------------------------------------------
  128          CALEXICO                  San Diego
------------------------------------------------------------------------------------------------------
  137         TEMPLE CITY             LA/Riverside
------------------------------------------------------------------------------------------------------
  138      WEST LOS ANGELES           LA/Riverside
------------------------------------------------------------------------------------------------------
  140     SAN DIEGO - GARNET            San Diego
------------------------------------------------------------------------------------------------------
  141        THOUSAND OAKS            LA/Riverside
------------------------------------------------------------------------------------------------------
  142         EL CERRITO               SF/Oakland
------------------------------------------------------------------------------------------------------
  143          DALY CITY                U.S. City
------------------------------------------------------------------------------------------------------
  146           RESEDA                LA/Riverside
------------------------------------------------------------------------------------------------------
  148       CITRUS HEIGHTS             SF/Oakland
------------------------------------------------------------------------------------------------------
  154          PETALUMA                 U.S. City
------------------------------------------------------------------------------------------------------
  156            BREA                   U.S. City
------------------------------------------------------------------------------------------------------
  158           CLOVIS                  U.S. City
------------------------------------------------------------------------------------------------------
  162    MORENO VALLEY - Bldg         LA/Riverside
------------------------------------------------------------------------------------------------------
         MORENO VALLEY - Pkg Lot      LA/Riverside
------------------------------------------------------------------------------------------------------
  163       CATHEDRAL CITY            LA/Riverside              Option Expires 5/12/01
------------------------------------------------------------------------------------------------------
  164            POWAY                LA/Riverside
------------------------------------------------------------------------------------------------------
  166          CLAREMONT              LA/Riverside              Option Expires 6/30/01
------------------------------------------------------------------------------------------------------
  167            VISTA                  U.S. City
------------------------------------------------------------------------------------------------------
  170        LAKE ELSINORE             U.S. City
------------------------------------------------------------------------------------------------------
  171         BAKERSFIELD              U.S. City
------------------------------------------------------------------------------------------------------
  174          HESPERIA                 U.S. City
------------------------------------------------------------------------------------------------------
  175           PERRIS                  U.S. City
------------------------------------------------------------------------------------------------------
  177      SACRAMENTO -WATT           SF/Oakland
------------------------------------------------------------------------------------------------------
  179    SAN DIEGO - MIDWAY DR.       LA/Riverside
------------------------------------------------------------------------------------------------------
  181         COSTA MESA              LA/Riverside
------------------------------------------------------------------------------------------------------
  182          PALMDALE               LA/Riverside
------------------------------------------------------------------------------------------------------
  183          STOCKTON                SF/Oakland
------------------------------------------------------------------------------------------------------
  189           FRESNO                U.S. City
------------------------------------------------------------------------------------------------------
  191         CHINO HILLS             LA/Riverside
------------------------------------------------------------------------------------------------------
  192        MISSION GORGE            LA/Riverside
------------------------------------------------------------------------------------------------------
  196         LAKE FOREST             Schedule
------------------------------------------------------------------------------------------------------
  197   ELK GROVE - Existing Store      U.S. City
------------------------------------------------------------------------------------------------------
         ELK GROVE - Addition           Schedule
------------------------------------------------------------------------------------------------------
  199           ROCKLIN               U.S. City
------------------------------------------------------------------------------------------------------
  200          SUNNYVALE              SF/Oakland
------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------

 Store         Location            Mo Rent         Cam Imp.      Tax Imp.    Sq. Ft.   Bays    CPI Cap   R & M   Roof  RE Tax   Ins

------------------------------------------------------------------------------------------------------------------------------------
<S>     <C>                       <C>              <C>           <C>         <C>       <C>     <C>       <C>     <C>   <C>      <C>
  091            INDIO             $ 4,836.30        $0.00         $0.00       4,400      6      25%      TEN     TEN    TEN    TEN
------------------------------------------------------------------------------------------------------------------------------------
  093           FREMONT            $ 2,723.91        $0.00         $0.00       3,500      5      25%      TEN     TEN    TEN    TEN
------------------------------------------------------------------------------------------------------------------------------------
  094           BARSTOW            $ 1,574.09        $0.00         $0.00       3,200      7      20%      TEN     LL     TEN    TEN
------------------------------------------------------------------------------------------------------------------------------------
  095     SAN JOSE-SAN CARLOS      $ 3,156.27        $0.00         $0.00       3,800      4      28%      TEN     TEN    TEN    TEN
------------------------------------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------------------------------------
  098           UPLAND             $ 3,390.47        $0.00         $0.00       3,800      5      25%      TEN     TEN     TEN   TEN
------------------------------------------------------------------------------------------------------------------------------------
  100          SAN BRUNO           $ 2,041.96        $0.00         $0.00       3,500      4      25%      TEN     TEN     TEN   TEN
------------------------------------------------------------------------------------------------------------------------------------
  104        REDWOOD CITY          $ 2,907.37        $0.00         $0.00       3,500      4      25%      TEN     TEN     TEN   TEN
------------------------------------------------------------------------------------------------------------------------------------
  105           CARSON             $ 3,240.00        $0.00         $0.00       3,900      6     NONE      TEN     TEN     TEN   TEN
------------------------------------------------------------------------------------------------------------------------------------
  107           MILPITAS           $ 4,900.00        $0.00         $0.00       4,400      4     NONE      TEN     TEN     TEN   TEN
------------------------------------------------------------------------------------------------------------------------------------
  112      SAN JOSE-MONTEREY       $ 4,256.00        $0.00         $0.00       4,000      7     NONE      TEN      LL     LL    LL
------------------------------------------------------------------------------------------------------------------------------------
  117           CONCORD            $ 4,748.87       $974.40        $0.00       4,500      6      5%       TEN      LL     TEN   TEN
------------------------------------------------------------------------------------------------------------------------------------
  118         ORANGEVALE           $ 5,000.00        $0.00         $0.00       4,500      6      25%      TEN     TEN     TEN   TEN
------------------------------------------------------------------------------------------------------------------------------------
  119       HAYWARD-MISSION        $ 6,700.00        $0.00         $0.00       4,400      4     NONE      TEN     TEN     TEN   TEN
------------------------------------------------------------------------------------------------------------------------------------
  120            LODI              $ 4,372.05        $0.00         $0.00       4,000      5     2.75%     TEN      LL     TEN   TEN
------------------------------------------------------------------------------------------------------------------------------------
  127          ENCINITAS           $ 8,564.89      $1,668.00       $0.00       5,032      6      15%      TEN      LL     TEN   TEN
------------------------------------------------------------------------------------------------------------------------------------
  128          CALEXICO            $ 3,636.05        $0.00         $0.00       3,900      4      25%      TEN      LL     TEN   TEN
------------------------------------------------------------------------------------------------------------------------------------
  137         TEMPLE CITY          $ 1,975.59        $0.00         $0.00       3,900      4     NONE      TEN     TEN     TEN   TEN
------------------------------------------------------------------------------------------------------------------------------------
  138      WEST LOS ANGELES        $ 6,158.95      $1,295.00       $0.00       4,000      6      4%       TEN      LL     TEN   TEN
------------------------------------------------------------------------------------------------------------------------------------
  140     SAN DIEGO - GARNET       $ 5,254.25        $0.00         $0.00       4,000      6      15%      TEN     TEN     TEN   TEN
------------------------------------------------------------------------------------------------------------------------------------
  141        THOUSAND OAKS         $ 8,454.40        $0.00         $0.00       5,000      6      21%      TEN     TEN     TEN   TEN
------------------------------------------------------------------------------------------------------------------------------------
  142         EL CERRITO           $ 3,150.00        $0.00         $0.00       4,000      5      9%       TEN      LL     TEN   TEN
------------------------------------------------------------------------------------------------------------------------------------
  143          DALY CITY           $ 4,429.71        $0.00         $0.00       5,000      5      15%      TEN      LL    L/T*   TEN
------------------------------------------------------------------------------------------------------------------------------------
  146           RESEDA             $ 2,905.74        $0.00         $0.00       4,000      5      25%      TEN     TEN     TEN   TEN
------------------------------------------------------------------------------------------------------------------------------------
  148       CITRUS HEIGHTS         $ 5,248.53        $0.00         $0.00       4,500      5      25%      TEN     TEN     TEN   TEN
------------------------------------------------------------------------------------------------------------------------------------
  154          PETALUMA            $ 8,868.00       $964.69        $0.00       5,500      4      25%      TEN      LL     TEN   TEN
------------------------------------------------------------------------------------------------------------------------------------
  156            BREA              $ 3,100.50        $0.00         $0.00       3,900      4      20%      TEN     TEN     LL    L/T*
------------------------------------------------------------------------------------------------------------------------------------
  158           CLOVIS             $ 5,468.38       $693.03       $248.22      5,500      6      15%      TEN      LL     TEN   TEN
------------------------------------------------------------------------------------------------------------------------------------
  162    MORENO VALLEY - Bldg      $ 5,600.00        $0.00         $0.00       4,800      5     NONE      TEN     TEN     TEN   TEN
------------------------------------------------------------------------------------------------------------------------------------
         MORENO VALLEY - Pkg Lot    $ 500.00         $0.00         $0.00       19,800     0     NONE      TEN     TEN     TEN   TEN
------------------------------------------------------------------------------------------------------------------------------------
  163       CATHEDRAL CITY         $ 5,243.39        $0.00         $0.00       4,800      5      25%      TEN     TEN     TEN   TEN
------------------------------------------------------------------------------------------------------------------------------------
  164            POWAY             $ 4,816.84        $0.00         $0.00       4,200      4      25%      TEN     TEN     TEN   TEN
------------------------------------------------------------------------------------------------------------------------------------
  166          CLAREMONT           $ 5,500.00       $115.00        $0.00       4,500      5      25%      TEN      LL     TEN   TEN
------------------------------------------------------------------------------------------------------------------------------------
  167            VISTA             $ 8,661.04      $1,728.00       $0.00       6,000      7      15%      TEN     TEN     TEN   TEN
------------------------------------------------------------------------------------------------------------------------------------
  170        LAKE ELSINORE         $ 7,345.42      $1,248.00       $0.00       5,200      7      15%      TEN     TEN     TEN   TEN
------------------------------------------------------------------------------------------------------------------------------------
  171         BAKERSFIELD          $ 6,226.12       $800.00        $0.00       5,200      8      15%      TEN      LL     TEN   TEN
------------------------------------------------------------------------------------------------------------------------------------
  174          HESPERIA            $ 6,251.45        $0.00         $0.00       5,200      8      25%      TEN     TEN     TEN   TEN
------------------------------------------------------------------------------------------------------------------------------------
  175           PERRIS             $ 7,185.24      $1,380.40       $0.00       4,760      6      15%      TEN      LL     TEN   TEN
------------------------------------------------------------------------------------------------------------------------------------
  177      SACRAMENTO -WATT        $ 5,199.79       $663.48        $0.00       5,200      8     12.5%     TEN      LL     TEN   TEN
------------------------------------------------------------------------------------------------------------------------------------
  179    SAN DIEGO - MIDWAY DR.    $ 8,091.00      $1,665.00       $0.00       6,250      6     NONE      TEN      LL     TEN   TEN
------------------------------------------------------------------------------------------------------------------------------------
  181         COSTA MESA           $ 7,622.47       $457.46        $0.00       6,000      6      18%      TEN      LL     TEN   TEN
------------------------------------------------------------------------------------------------------------------------------------
  182          PALMDALE            $ 6,190.14        $0.00         $0.00       5,200      4      15%     LL/T*     LL    TEN**  TEN
------------------------------------------------------------------------------------------------------------------------------------
  183          STOCKTON            $ 7,167.22       $471.93        $0.00       5,200      6      25%      TEN     TEN     TEN   TEN
------------------------------------------------------------------------------------------------------------------------------------
  189           FRESNO             $ 7,581.72        $0.00         $0.00       5,200      8      15%      TEN     TEN     TEN   TEN
------------------------------------------------------------------------------------------------------------------------------------
  191         CHINO HILLS          $ 7,252.67       $813.00        $0.00       4,799      6      15%      TEN      LL     TEN   TEN
------------------------------------------------------------------------------------------------------------------------------------
  192        MISSION GORGE         $ 7,750.83        $0.00         $0.00       5,160      6     NONE      TEN      LL     TEN   TEN
------------------------------------------------------------------------------------------------------------------------------------
  196         LAKE FOREST          $ 9,437.40      $2,973.00       $0.00       6,420      6     NONE      TEN      LL     TEN   TEN
------------------------------------------------------------------------------------------------------------------------------------
  197  ELK GROVE - Existing Store  $ 5,683.50        $0.00         $0.00       4,400      5      25%      TEN     TEN     TEN   TEN
------------------------------------------------------------------------------------------------------------------------------------
         ELK GROVE - Addition      $ 3,500.00        $0.00         $0.00       2,480      0      15%      TEN      LL     TEN   TEN
------------------------------------------------------------------------------------------------------------------------------------
  199           ROCKLIN            $ 5,764.02        $0.00         $0.00       4,500      5      25%      TEN     TEN     TEN   TEN
------------------------------------------------------------------------------------------------------------------------------------
  200          SUNNYVALE           $ 7,485.76       $111.00        $0.00       4,360      6     NONE      TEN     LL*     TEN   TEN
------------------------------------------------------------------------------------------------------------------------------------

                                                                      This Lease Abstract does not contain any information regarding
                     contingent liabilities or indemnification provisions. Please review each lease independently for such purposes.
</TABLE>
                                       2
<PAGE>   56


<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------------
                                      Core/Non-core
 Store         Location                Terminated/  Lease Begin   Lease End            Options           Increase Dates
                                        Assigned
----------------------------------------------------------------------------------------------------------------------------------
<S>     <C>                         <C>             <C>           <C>             <C>              <C>
  201        YUCCA VALLEY                 Core       6/5/1994     6/4/2004           2-5 YR OPT                Jun-03
----------------------------------------------------------------------------------------------------------------------------------
  202           CORONA                    Core       3/19/1994    4/1/2009           2-5 YR OPT             3/2003,2006
----------------------------------------------------------------------------------------------------------------------------------
  203           MODESTO                   Core       5/23/1994    5/23/2009           2-5 YR OPT               5/03,06
----------------------------------------------------------------------------------------------------------------------------------
  209           MANTECA                   Core       9/30/1995    9/29/2010           2-5 YR OPT             9/30/2005
----------------------------------------------------------------------------------------------------------------------------------
  215        SCOTTS VALLEY                Core       3/1/1996     7/31/2004           2-5 YR OPT                NONE
----------------------------------------------------------------------------------------------------------------------------------
        SCOTTS VALLEY - ADDITION                     9/1/1999     8/31/2004           1-5 YR OPT           9/1/01,02,03
----------------------------------------------------------------------------------------------------------------------------------
  218           BANNING                   Core       11/23/1996   11/22/2011          2-5 YR OPT          11/23/2001,06
----------------------------------------------------------------------------------------------------------------------------------
  219       SHINGLE SPRINGS               Core       11/15/1995   10/31/2005          1-5 YR OPT             11/1/2000
----------------------------------------------------------------------------------------------------------------------------------
  222           GILROY                    Core       1/16/1998    1/15/2018           2-5 YR OPT          01/16/03,08,13
----------------------------------------------------------------------------------------------------------------------------------
  223       CANYON COUNTRY                Core       3/15/1998    6/30/2004           5-5 YR OPT                NONE
----------------------------------------------------------------------------------------------------------------------------------
  229    LONG BEACH TOWNE CENTER          Core       5/7/1999     5/31/2014           2-5 YR OPT            5/7/2004,09
----------------------------------------------------------------------------------------------------------------------------------
  231         BUENA PARK                  Core       8/1/1998     10/30/2003          1-5 YR OPT                NONE
----------------------------------------------------------------------------------------------------------------------------------
  233        NATIONAL CITY                Core       3/1/1999     4/30/2009           2-5 YR OPT             3/1/2004
----------------------------------------------------------------------------------------------------------------------------------
  240          CAMARILLO                  Core       2/5/1998     2/4/2006              NONE                    NONE
----------------------------------------------------------------------------------------------------------------------------------
  242          SAN JOSE                   Core       2/1/1990     1/31/2003           1-5 YR OPT                NONE
----------------------------------------------------------------------------------------------------------------------------------
  246         SANTA CLARA                 Core       1/1/1990     12/31/2001       1-3, 1-5 YR OPT              NONE
----------------------------------------------------------------------------------------------------------------------------------
  247           OLYMPIC                   Core       2/1/1990     8/31/2002              NONE                   NONE
----------------------------------------------------------------------------------------------------------------------------------
  248          TORRANCE                   Core       1/1/1979     12/31/2003          1-5 YR OPT                NONE
----------------------------------------------------------------------------------------------------------------------------------
  249          PASADENA                   Core       5/1/1994     4/30/2004           1-5 YR OPT             11/1/2001
----------------------------------------------------------------------------------------------------------------------------------
  252          TEMECULA                   Core       11/3/2000    12/1/2010           2-5 YR OPT             11/3/2005
----------------------------------------------------------------------------------------------------------------------------------
  255         PLEASANTON                  Core       1/1/2000     12/31/2014          2-5 YR OPT            1/1/2005,10
----------------------------------------------------------------------------------------------------------------------------------
  257          REDLANDS                   Core       9/7/1999     9/6/2014           1-5 YR OPT            9/7/2004, 09
----------------------------------------------------------------------------------------------------------------------------------
  259          EL CENTRO                  Core       1/26/2000    1/25/2015           2-5 YR OPT      7/10/02,1/10/05,7/10/07
----------------------------------------------------------------------------------------------------------------------------------
  279      CITY OF INDUSTRY               Core       5/23/1997    5/22/2007           2-5 YR OPT                NONE
----------------------------------------------------------------------------------------------------------------------------------
  280    SAN DIEGO / LA JOLLA             Core       8/1/1996     8/15/2003           2-5 YR OPT     Percentage Rent - Yearly
----------------------------------------------------------------------------------------------------------------------------------
  281        REDONDO BEACH                Core       7/1/1995     6/30/2003              NONE                   NONE
----------------------------------------------------------------------------------------------------------------------------------
  284           FONTANA                   Core                    1/10/2005              NONE                   NONE
----------------------------------------------------------------------------------------------------------------------------------
  285           STANTON                   Core       6/1/2000     6/1/2010           2-5 YR OPT          6/1/02,04,06,08
----------------------------------------------------------------------------------------------------------------------------------
  286         CHULA VISTA                 Core       1/1/2000     12/31/2014             NONE        1/1/01 Yearly thereafter
----------------------------------------------------------------------------------------------------------------------------------
  287         DIAMOND BAR                 Core                    12/30/2005             NONE        Percentage Rent - Yearly
----------------------------------------------------------------------------------------------------------------------------------
  289            AZUSA                    Core       6/28/1995    5/31/2001         NONE                        NONE
----------------------------------------------------------------------------------------------------------------------------------
  290        SPRING VALLEY                Core       8/1/1996     7/30/2001         NONE             Percentage Rent - Yearly
----------------------------------------------------------------------------------------------------------------------------------
  291            CHINO                    Core       7/1/1995     12/31/2001             NONE                   NONE
----------------------------------------------------------------------------------------------------------------------------------
  292         YORBA LINDA                 Core       10/1/1995    9/30/2002       7-5 YR OPT                    NONE
----------------------------------------------------------------------------------------------------------------------------------
  295   EL CAJON / JOHNSON AVE.           Core       12/1/1996    11/30/2006             NONE             12/1/01,6/1/04
----------------------------------------------------------------------------------------------------------------------------------
  301         BAKERSFIELD                 Core       9/13/2000    9/12/2015           2-5 YR OPT            9/13/05, 10
----------------------------------------------------------------------------------------------------------------------------------
  303          DANVILLE                   Core       3/27/2000    12/1/2009              NONE                   NONE
----------------------------------------------------------------------------------------------------------------------------------
  900  CORP. OFFICE & TRAINING CTR.       Core       1/1/2001     12/31/2005          1-5 YR OPT                NONE
----------------------------------------------------------------------------------------------------------------------------------
  024        GARDEN GROVE               Assigned     LEASE ASSIGNED 4/10/01
----------------------------------------------------------------------------------------------------------------------------------
  026         COSTA MESA                Assigned     LEASE ASSIGNED 4/10/01
----------------------------------------------------------------------------------------------------------------------------------
  037        SANTA MONICA               Assigned     LEASE ASSIGNED 4/6/01
----------------------------------------------------------------------------------------------------------------------------------
  046         WEST COVINA               Assigned     LEASE ASSIGNED 4/4/01
----------------------------------------------------------------------------------------------------------------------------------
  062       RANCHO CORDOVA              Assigned     LEASE ASSIGNED 5/2/01
----------------------------------------------------------------------------------------------------------------------------------
  079        SANTA BARBARA              Assigned     LEASE ASSIGNED 4/3/01
----------------------------------------------------------------------------------------------------------------------------------
  087         VICTORVILLE               Assigned     LEASE ASSIGNED 4/24/01
----------------------------------------------------------------------------------------------------------------------------------
  124          REDLANDS                 Assigned     LEASE ASSIGNED 4/20/01
----------------------------------------------------------------------------------------------------------------------------------
  133          RIVERSIDE                Assigned     LEASE ASSIGNED 4/25/01
----------------------------------------------------------------------------------------------------------------------------------
  147            HEMET                  Assigned     LEASE ASSIGNED 4/4/01
----------------------------------------------------------------------------------------------------------------------------------
  165         YORBA LINDA               Assigned     LEASE ASSIGNED JULY 2000
----------------------------------------------------------------------------------------------------------------------------------
  184     DESERT HOT SPRINGS            Assigned     LEASE ASSIGNED 4/10/01
----------------------------------------------------------------------------------------------------------------------------------
  186        PALM SPRINGS               Assigned     LEASE ASSIGNED JANUARY 2000
----------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------

 Store         Location               CPI Index                             Comments

------------------------------------------------------------------------------------------------------
<S>     <C>                         <C>                   <C>
  201        YUCCA VALLEY            LA/Riverside
------------------------------------------------------------------------------------------------------
  202           CORONA               LA/Riverside
------------------------------------------------------------------------------------------------------
  203           MODESTO               U.S. City
------------------------------------------------------------------------------------------------------
  209           MANTECA               U.S. City
------------------------------------------------------------------------------------------------------
  215        SCOTTS VALLEY            Schedule
------------------------------------------------------------------------------------------------------
        SCOTTS VALLEY - ADDITION      Schedule
------------------------------------------------------------------------------------------------------
  218           BANNING               U.S. City
------------------------------------------------------------------------------------------------------
  219       SHINGLE SPRINGS           U.S. City
------------------------------------------------------------------------------------------------------
  222           GILROY                U.S. City
------------------------------------------------------------------------------------------------------
  223       CANYON COUNTRY            Schedule
------------------------------------------------------------------------------------------------------
  229    LONG BEACH TOWNE CENTER      U.S. City
------------------------------------------------------------------------------------------------------
  231         BUENA PARK                NONE
------------------------------------------------------------------------------------------------------
  233        NATIONAL CITY           LA/Riverside
------------------------------------------------------------------------------------------------------
  240          CAMARILLO             2% Increase
------------------------------------------------------------------------------------------------------
  242          SAN JOSE               Schedule
------------------------------------------------------------------------------------------------------
  246         SANTA CLARA            SF/Oakland
------------------------------------------------------------------------------------------------------
  247           OLYMPIC                 NONE
------------------------------------------------------------------------------------------------------
  248          TORRANCE                 NONE
------------------------------------------------------------------------------------------------------
  249          PASADENA              LA/Riverside
------------------------------------------------------------------------------------------------------
  252          TEMECULA              LA/Riverside
------------------------------------------------------------------------------------------------------
  255         PLEASANTON             LA/Riverside
------------------------------------------------------------------------------------------------------
  257          REDLANDS              LA/Riverside
------------------------------------------------------------------------------------------------------
  259          EL CENTRO             LA/Riverside
------------------------------------------------------------------------------------------------------
  279      CITY OF INDUSTRY          Fair Market
------------------------------------------------------------------------------------------------------
  280    SAN DIEGO / LA JOLLA            N/A
------------------------------------------------------------------------------------------------------
  281        REDONDO BEACH            Schedule
------------------------------------------------------------------------------------------------------
  284           FONTANA                  N/A
------------------------------------------------------------------------------------------------------
  285           STANTON              LA/Riverside
------------------------------------------------------------------------------------------------------
  286         CHULA VISTA             Schedule
------------------------------------------------------------------------------------------------------
  287         DIAMOND BAR                N/A
------------------------------------------------------------------------------------------------------
  289            AZUSA                   N/A                 Month-To-Month Pending Goodyear Renewal
------------------------------------------------------------------------------------------------------
  290        SPRING VALLEY               N/A                 Month-To-Month Pending Goodyear Renewal
------------------------------------------------------------------------------------------------------
  291            CHINO                   N/A
------------------------------------------------------------------------------------------------------
  292         YORBA LINDA                N/A
------------------------------------------------------------------------------------------------------
  295   EL CAJON / JOHNSON AVE.       Schedule
------------------------------------------------------------------------------------------------------
  301         BAKERSFIELD             U.S. City
------------------------------------------------------------------------------------------------------
  303          DANVILLE               Schedule
------------------------------------------------------------------------------------------------------
  900  CORP. OFFICE & TRAINING CTR.      N/A
------------------------------------------------------------------------------------------------------
  024        GARDEN GROVE
------------------------------------------------------------------------------------------------------
  026         COSTA MESA
------------------------------------------------------------------------------------------------------
  037        SANTA MONICA
------------------------------------------------------------------------------------------------------
  046         WEST COVINA
------------------------------------------------------------------------------------------------------
  062       RANCHO CORDOVA
------------------------------------------------------------------------------------------------------
  079        SANTA BARBARA
------------------------------------------------------------------------------------------------------
  087         VICTORVILLE
------------------------------------------------------------------------------------------------------
  124          REDLANDS
------------------------------------------------------------------------------------------------------
  133          RIVERSIDE
------------------------------------------------------------------------------------------------------
  147            HEMET
------------------------------------------------------------------------------------------------------
  165         YORBA LINDA
------------------------------------------------------------------------------------------------------
  184     DESERT HOT SPRINGS
------------------------------------------------------------------------------------------------------
  186        PALM SPRINGS
------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------

 Store         Location            Mo Rent         Cam Imp.      Tax Imp.    Sq. Ft.   Bays    CPI Cap   R & M   Roof  RE Tax   Ins

------------------------------------------------------------------------------------------------------------------------------------
<S>     <C>                       <C>              <C>           <C>         <C>       <C>     <C>       <C>     <C>   <C>      <C>
  201        YUCCA VALLEY         $ 5,179.57        $0.00         $0.00       4,400      6       15%     TEN     TEN    TEN     TEN
------------------------------------------------------------------------------------------------------------------------------------
  202           CORONA            $ 5,332.72      $1,174.54       $0.00       4,400      6       15%     TEN      LL    TEN     TEN
------------------------------------------------------------------------------------------------------------------------------------
  203           MODESTO           $ 6,271.44        $0.00         $0.00       4,400      6       15%     TEN     TEN    TEN     TEN
------------------------------------------------------------------------------------------------------------------------------------
  209           MANTECA           $ 5,102.10        $0.00         $0.00       4,400      6       15%     TEN     TEN    TEN     TEN
------------------------------------------------------------------------------------------------------------------------------------
  215        SCOTTS VALLEY        $ 3,994.00       $684.94       $572.08      3,780      7      NONE     TEN      LL    TEN     TEN
------------------------------------------------------------------------------------------------------------------------------------
        SCOTTS VALLEY - ADDITION  $ 1,575.00       $275.00       $176.00      1,000      0      NONE     TEN      LL    TEN     TEN
------------------------------------------------------------------------------------------------------------------------------------
  218           BANNING           $ 3,777.43        $0.00         $0.00       7,392      5       15%     TEN     TEN    TEN     TEN
------------------------------------------------------------------------------------------------------------------------------------
  219       SHINGLE SPRINGS       $ 3,400.00        $0.00         $0.00       4,800      5       15%     TEN      LL    TEN     TEN
------------------------------------------------------------------------------------------------------------------------------------
  222           GILROY            $ 8,299.20        $0.00         $0.00       4,400              15%     TEN     TEN    TEN     TEN
------------------------------------------------------------------------------------------------------------------------------------
  223       CANYON COUNTRY        $ 6,345.00       $225.00       $190.00      5,280      6      NONE     TEN      LL    TEN     TEN
------------------------------------------------------------------------------------------------------------------------------------
  229    LONG BEACH TOWNE CENTER  $ 8,020.83      $2,759.25       $0.00       4,400              15%     TEN     TEN    TEN     TEN
------------------------------------------------------------------------------------------------------------------------------------
  231         BUENA PARK          $ 6,643.00      $1,230.10       $0.00       8,304             NONE     TEN     TEN    TEN     TEN
------------------------------------------------------------------------------------------------------------------------------------
  233        NATIONAL CITY        $  5,375.00     $1,305.00       $0.00       4,300              15%     TEN      LL    TEN     TEN
------------------------------------------------------------------------------------------------------------------------------------
  240          CAMARILLO          $ 5,499.55        $0.00         $0.00       4,725             NONE     TEN      LL    TEN     TEN
------------------------------------------------------------------------------------------------------------------------------------
  242          SAN JOSE           $ 13,010.23       $0.00         $0.00       9,900             NONE     TEN      LL    TEN     TEN
------------------------------------------------------------------------------------------------------------------------------------
  246         SANTA CLARA         $ 7,972.26        $0.00         $0.00       5,265              3%      TEN      LL    LL      TEN
------------------------------------------------------------------------------------------------------------------------------------
  247           OLYMPIC           $ 6,000.00        $0.00        $500.00      6,000             NONE     TEN     TEN    TEN     TEN
------------------------------------------------------------------------------------------------------------------------------------
  248          TORRANCE           $ 7,418.80        $0.00         $0.00       4,364             NONE     TEN      LL    TEN     TEN
------------------------------------------------------------------------------------------------------------------------------------
  249          PASADENA           $ 6,006.81        $0.00         $0.00       7,500             12.5%    TEN     LL*    TEN     TEN
------------------------------------------------------------------------------------------------------------------------------------
  252          TEMECULA           $ 10,593.37      $616.10       $575.00      5,800      6       15%     TEN      LL    TEN     TEN
------------------------------------------------------------------------------------------------------------------------------------
  255         PLEASANTON          $ 9,826.92        $0.00         $0.00       5,310              15%     TEN      LL    TEN     TEN
------------------------------------------------------------------------------------------------------------------------------------
  257          REDLANDS           $ 8,931.74      $1,454.40       $0.00       5,653              15%     TEN      LL    TEN     TEN
------------------------------------------------------------------------------------------------------------------------------------
  259          EL CENTRO          $ 9,140.63      $1,228.67       $0.00       5,310              15%     TEN      LL    TEN     TEN
------------------------------------------------------------------------------------------------------------------------------------
  279      CITY OF INDUSTRY       $ 11,000.00      $965.00        $0.00       5,554                      TEN      LL    TEN     TEN
------------------------------------------------------------------------------------------------------------------------------------
  280    SAN DIEGO / LA JOLLA     $ 5,520.00       $552.82       $300.00      5,623                      TEN      LL    TEN     TEN
------------------------------------------------------------------------------------------------------------------------------------
  281        REDONDO BEACH        $ 11,184.00     $2,025.00       $0.00       8,141             NONE     TEN      LL    TEN     TEN
------------------------------------------------------------------------------------------------------------------------------------
  284           FONTANA           $ 3,675.24        $80.75       $460.00      8,693                      TEN      LL    TEN     TEN
------------------------------------------------------------------------------------------------------------------------------------
  285           STANTON           $ 8,200.00        $0.00         $0.00       7,066                      TEN      LL    TEN     TEN
------------------------------------------------------------------------------------------------------------------------------------
  286         CHULA VISTA         $ 8,788.15        $0.00         $0.00       7,986                      TEN     TEN    TEN     TEN
------------------------------------------------------------------------------------------------------------------------------------
  287         DIAMOND BAR         $ 2,246.40        $57.46       $421.00      7,066                      TEN      LL    TEN     TEN
------------------------------------------------------------------------------------------------------------------------------------
  289            AZUSA            $ 6,000.00       $148.60       $452.23      8,632                      TEN      LL    TEN     TEN
------------------------------------------------------------------------------------------------------------------------------------
  290        SPRING VALLEY        $ 2,339.56       $123.40       $300.00      3,743                      TEN      LL    TEN     TEN
------------------------------------------------------------------------------------------------------------------------------------
  291            CHINO            $ 3,000.00       $191.87        $50.00      6,000                      TEN      LL    TEN     TEN
------------------------------------------------------------------------------------------------------------------------------------
  292         YORBA LINDA         $ 8,551.04       $439.82       $820.00      8,714                      TEN      LL    TEN     TEN
------------------------------------------------------------------------------------------------------------------------------------
  295   EL CAJON / JOHNSON AVE.   $ 6,228.00       $148.28       $360.00      4,347                      TEN     TEN    TEN     TEN
------------------------------------------------------------------------------------------------------------------------------------
  301         BAKERSFIELD         $ 9,625.00       $470.00        $0.00       7,802     10      2-5%     TEN      LL    TEN     TEN
------------------------------------------------------------------------------------------------------------------------------------
  303          DANVILLE           $ 8,815.57        $0.00         $0.00                                  TEN            TEN     TEN
------------------------------------------------------------------------------------------------------------------------------------
  900 CORP. OFFICE & TRAINING CTR $ 38,342.50     $1,205.00       $0.00       24,500                     TEN      LL    TEN     TEN
------------------------------------------------------------------------------------------------------------------------------------
  024        GARDEN GROVE
------------------------------------------------------------------------------------------------------------------------------------
  026         COSTA MESA
------------------------------------------------------------------------------------------------------------------------------------
  037        SANTA MONICA
------------------------------------------------------------------------------------------------------------------------------------
  046         WEST COVINA
------------------------------------------------------------------------------------------------------------------------------------
  062       RANCHO CORDOVA
------------------------------------------------------------------------------------------------------------------------------------
  079        SANTA BARBARA
------------------------------------------------------------------------------------------------------------------------------------
  087         VICTORVILLE
------------------------------------------------------------------------------------------------------------------------------------
  124          REDLANDS
------------------------------------------------------------------------------------------------------------------------------------
  133          RIVERSIDE
------------------------------------------------------------------------------------------------------------------------------------
  147            HEMET
------------------------------------------------------------------------------------------------------------------------------------
  165         YORBA LINDA
------------------------------------------------------------------------------------------------------------------------------------
  184     DESERT HOT SPRINGS
------------------------------------------------------------------------------------------------------------------------------------
  186        PALM SPRINGS
------------------------------------------------------------------------------------------------------------------------------------

                                                                      This Lease Abstract does not contain any information regarding
                     contingent liabilities or indemnification provisions. Please review each lease independently for such purposes.
</TABLE>
                                       3
<PAGE>   57

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------------
                                      Core/Non-core
 Store         Location                Terminated/  Lease Begin   Lease End            Options           Increase Dates
                                        Assigned
----------------------------------------------------------------------------------------------------------------------------------
<S>     <C>                         <C>             <C>           <C>             <C>              <C>
  198           COLTON                  Assigned     LEASE ASSIGNED 4/5/01
-----------------------------------------------------------------------------------------------------------------------------------
  206          FAIRFIELD                Assigned     LEASE ASSIGNED 4/10/01
-----------------------------------------------------------------------------------------------------------------------------------
  208           TULARE                  Assigned     LEASE ASSIGNED 4/3/01
-----------------------------------------------------------------------------------------------------------------------------------
  211           KINGMAN                 Assigned     LEASE ASSIGNED 4/11/01
-----------------------------------------------------------------------------------------------------------------------------------
  212          BULLHEAD                 Assigned     LEASE ASSIGNED 4/11/01
-----------------------------------------------------------------------------------------------------------------------------------
  213         LAKE HAVASU               Assigned     LEASE ASSIGNED 4/12/01
-----------------------------------------------------------------------------------------------------------------------------------
  220      SAN LUIS OBISBO              Assigned     LEASE ASSIGNED 4/13/01
-----------------------------------------------------------------------------------------------------------------------------------
  221          VACAVILLE                Assigned     LEASE ASSIGNED 4/3/01
-----------------------------------------------------------------------------------------------------------------------------------
  226         LONG BEACH                Assigned     LEASE ASSIGNED 4/3/01
-----------------------------------------------------------------------------------------------------------------------------------
  230         ALISO VIEJO               Assigned     LEASE ASSIGNED 4/24/01
-----------------------------------------------------------------------------------------------------------------------------------
  238           FILMORE                 Assigned     LEASE ASSIGNED 4/10/01
-----------------------------------------------------------------------------------------------------------------------------------
  239           VISALIA                 Assigned     LEASE ASSIGNED 4/24/01
-----------------------------------------------------------------------------------------------------------------------------------
  260            TEMPE                  Assigned     LEASE ASSIGNED 3/22/01
-----------------------------------------------------------------------------------------------------------------------------------
  265          MESA, AZ.                Assigned     LEASE ASSIGNED 3/6/01
-----------------------------------------------------------------------------------------------------------------------------------
  266    PHOENIX / THOMAS RD.           Assigned     LEASE ASSIGNED 3/22/01
-----------------------------------------------------------------------------------------------------------------------------------
  267   PHOENIX / GREENWAY PKWY.        Assigned     LEASE ASSIGNED 3/22/01
-----------------------------------------------------------------------------------------------------------------------------------
  268     PHOENIX / CACTUS RD.          Assigned     LEASE ASSIGNED 3/6/01
-----------------------------------------------------------------------------------------------------------------------------------
  293   SAN DIEGO / MIRAMAR RD.         Assigned     LEASE ASSIGNED 5/1/01
-----------------------------------------------------------------------------------------------------------------------------------
  294    SAN DIEGO / BROADWAY           Assigned     LEASE ASSIGNED 5/1/01
-----------------------------------------------------------------------------------------------------------------------------------
  002          EL MONTE                 Non-Core     7/13/1987    7/12/2002      3-5 YR&1-4 YR-11 MO.            NONE
-----------------------------------------------------------------------------------------------------------------------------------
  005          FULLERTON                Non-Core     2/4/1977     2/3/2002           2-5 YR OPT                  NONE
-----------------------------------------------------------------------------------------------------------------------------------
  022          LAWNDALE                 Non-Core     1/1/1977     12/31/2001          1-5 YR OPT                 NONE
-----------------------------------------------------------------------------------------------------------------------------------
        LAWNDALE - Addt'l Space         Non-Core     10/1/1991    12/31/2007          1-5 YR OPT               10/03,06
-----------------------------------------------------------------------------------------------------------------------------------
  029       EAST SAN DIEGO              Non-Core     12/1/1995    11/30/2001          1-5 YR OPT                 NONE
-----------------------------------------------------------------------------------------------------------------------------------
  033           ANAHEIM                 Non-Core     3/15/1993    3/14/2003           1-5 YR OPT                 NONE
-----------------------------------------------------------------------------------------------------------------------------------
  052         CULVER CITY               Non-Core     1/1/1977     12/31/2001             NONE                    NONE
-----------------------------------------------------------------------------------------------------------------------------------
  101           FONTANA                 Non-Core     12/1/1979    10/31/2004          2-5 YR OPT                 NONE
-----------------------------------------------------------------------------------------------------------------------------------
  134          BERKELEY                 Non-Core     9/20/1982    9/19/2002           2-5 YR OPT                 NONE
-----------------------------------------------------------------------------------------------------------------------------------
  135    S. DIEGO-MIRAMAR RD.           Non-Core     4/4/1983     4/3/2003              NONE                     NONE
-----------------------------------------------------------------------------------------------------------------------------------
  145         BELLFLOWER                Non-Core     11/1/1983    10/31/2003             NONE                    NONE
-----------------------------------------------------------------------------------------------------------------------------------
  155            NAPA                   Non-Core     1/10/1986    1/9/2006           2-5 YR OPT                  NONE
-----------------------------------------------------------------------------------------------------------------------------------
  172          GLENDORA                 Non-Core     9/13/1988    9/30/2003           1-5 YR OPT              9/13/2001
-----------------------------------------------------------------------------------------------------------------------------------
  173         SAN MARCOS                Non-Core     6/15/1988    12/31/2004          1-5 YR OPT              6/1/2001
-----------------------------------------------------------------------------------------------------------------------------------
  176           SANTEE                  Non-Core     10/6/1989    10/5/2004           2-5 YR OPT              10/01/01
-----------------------------------------------------------------------------------------------------------------------------------
  178          OCEANSIDE                Non-Core     8/24/1989    8/23/2009           2-5 YR OPT              8/24/2004
-----------------------------------------------------------------------------------------------------------------------------------
  187           CYPRESS                 Non-Core     7/19/1990    7/31/2005              NONE                    NONE
-----------------------------------------------------------------------------------------------------------------------------------
  193         WESTMINSTER               Non-Core     8/1/1991     7/31/2004           2-5 YR OPT               8/3/2000
-----------------------------------------------------------------------------------------------------------------------------------
  195           MERCED                  Non-Core     10/25/1994   10/24/2009          2-5 YR OPT              10/25/2004
-----------------------------------------------------------------------------------------------------------------------------------
  205           MADERA                  Non-Core     2/1/1994     1/31/2009           2-5 YR OPT               1/03,06
-----------------------------------------------------------------------------------------------------------------------------------
  207        ROHNERT PARK               Non-Core     8/26/1995    8/25/2010           2-5 YR OPT              8/1/2605
-----------------------------------------------------------------------------------------------------------------------------------
  207    ROHNERT PARK -Ground           Non-Core     8/26/1995    8/25/2010           2-5 YR OPT             08/01,03,05
-----------------------------------------------------------------------------------------------------------------------------------
  210           BLYTHE                  Non-Core     6/26/1995    7/1/2005           2-5 YR OPT                  NONE
-----------------------------------------------------------------------------------------------------------------------------------
  214          YUBA CITY                Non-Core     11/5/1996    11/4/2011           2-5 YR OPT             11/5/01,06
-----------------------------------------------------------------------------------------------------------------------------------
  216           GARDENA                 Non-Core     1/10/2000    12/31/2012          2-5 YR OPT       7/10/02,1/10/05,7/10/07
-----------------------------------------------------------------------------------------------------------------------------------
  224     SANTA ANA / BRISTOL           Non-Core     7/27/1998    7/31/2008           3-5 YR OPT              7/27/2003
-----------------------------------------------------------------------------------------------------------------------------------
  227          OROVILLE                 Non-Core     8/18/1997    8/17/2012           2-5 YR OPT            8/18/2002,07
-----------------------------------------------------------------------------------------------------------------------------------
  228   L.A. / HOLLYWOOD BLVD.          Non-Core     5/1/1998     4/30/2008           3-5 YR OPT                 NONE
-----------------------------------------------------------------------------------------------------------------------------------
  232          SANTA ANA                Non-Core     11/1/1998    10/30/2006          1-5 YR OPT        % RENT YRLY -01/00,01
-----------------------------------------------------------------------------------------------------------------------------------
  235          BRUNDAGE                 Non-Core     1/8/1979     1/7/2003              NONE                     NONE
-----------------------------------------------------------------------------------------------------------------------------------
  236           CHESTER                 Non-Core     2/5/1979     2/4/2003              NONE         TENANT PAYS RENT DIRECT TO LL
-----------------------------------------------------------------------------------------------------------------------------------
  237         PORTERVILLE               Non-Core     2/1/1998     1/31/2003           2-5 YR OPT                 NONE
-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------

 Store         Location               CPI Index                             Comments

------------------------------------------------------------------------------------------------------
<S>     <C>                         <C>                   <C>
  198           COLTON
------------------------------------------------------------------------------------------------------
  206          FAIRFIELD
------------------------------------------------------------------------------------------------------
  208           TULARE
------------------------------------------------------------------------------------------------------
  211           KINGMAN
------------------------------------------------------------------------------------------------------
  212          BULLHEAD
------------------------------------------------------------------------------------------------------
  213         LAKE HAVASU
------------------------------------------------------------------------------------------------------
  220      SAN LUIS OBISBO
------------------------------------------------------------------------------------------------------
  221          VACAVILLE
------------------------------------------------------------------------------------------------------
  226         LONG BEACH
------------------------------------------------------------------------------------------------------
  230         ALISO VIEJO
------------------------------------------------------------------------------------------------------
  238           FILMORE
------------------------------------------------------------------------------------------------------
  239           VISALIA
------------------------------------------------------------------------------------------------------
  260            TEMPE
------------------------------------------------------------------------------------------------------
  265          MESA, AZ.
------------------------------------------------------------------------------------------------------
  266    PHOENIX / THOMAS RD.
------------------------------------------------------------------------------------------------------
  267   PHOENIX / GREENWAY PKWY.
------------------------------------------------------------------------------------------------------
  268     PHOENIX / CACTUS RD.
------------------------------------------------------------------------------------------------------
  293   SAN DIEGO / MIRAMAR RD.
------------------------------------------------------------------------------------------------------
  294    SAN DIEGO / BROADWAY
------------------------------------------------------------------------------------------------------
  002          EL MONTE               LA/Riverside             To Be Assigned/Subleased
------------------------------------------------------------------------------------------------------
  005          FULLERTON              U.S. City                       Subleased
------------------------------------------------------------------------------------------------------
  022          LAWNDALE               U.S. City                To Be Assigned/Subleased
------------------------------------------------------------------------------------------------------
        LAWNDALE - Addt'l Space       U.S. City                To Be Assigned/Subleased
------------------------------------------------------------------------------------------------------
  029       EAST SAN DIEGO            LA/Riverside              Option Expires 5/30/01
------------------------------------------------------------------------------------------------------
  033           ANAHEIM               LA/Riverside             To Be Assigned/Terminated
------------------------------------------------------------------------------------------------------
  052         CULVER CITY             LA/Riverside
------------------------------------------------------------------------------------------------------
  101           FONTANA               LA/Riverside
------------------------------------------------------------------------------------------------------
  134          BERKELEY               LA/Riverside                  Subleased
------------------------------------------------------------------------------------------------------
  135    S. DIEGO-MIRAMAR RD.          U.S. City                    Subleased
------------------------------------------------------------------------------------------------------
  145         BELLFLOWER              LA/Riverside             To Be Assigned/Subleased
------------------------------------------------------------------------------------------------------
  155            NAPA                 SF/Oakland                    Subleased
------------------------------------------------------------------------------------------------------
  172          GLENDORA                U.S. City               To Be Assigned/Subleased
------------------------------------------------------------------------------------------------------
  173         SAN MARCOS              LA/Riverside                 To Be Assigned
------------------------------------------------------------------------------------------------------
  176           SANTEE                 U.S. City              To Be Assigned/Subleased
------------------------------------------------------------------------------------------------------
  178          OCEANSIDE               U.S. City              To Be Assigned/Subleased
------------------------------------------------------------------------------------------------------
  187           CYPRESS               LA/Riverside                 To Be Assigned
------------------------------------------------------------------------------------------------------
  193         WESTMINSTER              U.S. City                    Subleased
------------------------------------------------------------------------------------------------------
  195           MERCED                 U.S. City              To Be Assigned/Subleased
------------------------------------------------------------------------------------------------------
  205           MADERA                 U.S. City                   To Be Assigned
------------------------------------------------------------------------------------------------------
  207        ROHNERT PARK              U.S. City              To Be Assigned/Subleased
------------------------------------------------------------------------------------------------------
  207    ROHNERT PARK -Ground          SF/Oakland             To Be Assigned/Subleased
------------------------------------------------------------------------------------------------------
  210           BLYTHE                 U.S. City
------------------------------------------------------------------------------------------------------
  214          YUBA CITY               U.S. City             To Be Assigned/Subleased
------------------------------------------------------------------------------------------------------
  216           GARDENA               LA/Riverside           To Be Assigned/Subleased
------------------------------------------------------------------------------------------------------
  224     SANTA ANA / BRISTOL         LA/Riverside           To Be Assigned/Subleased
------------------------------------------------------------------------------------------------------
  227          OROVILLE                U.S. City             To Be Assigned/Subleased
------------------------------------------------------------------------------------------------------
  228   L.A. / HOLLYWOOD BLVD.            NONE                      Subleased
------------------------------------------------------------------------------------------------------
  232          SANTA ANA                  NONE                     To Be Assigned
------------------------------------------------------------------------------------------------------
  235          BRUNDAGE               LA/Riverside                  Subleased
------------------------------------------------------------------------------------------------------
  236           CHESTER               LA/Riverside                  Subleased
------------------------------------------------------------------------------------------------------
  237         PORTERVILLE              U.S. City             To Be Assigned/Subleased
------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------

 Store         Location            Mo Rent         Cam Imp.      Tax Imp.    Sq. Ft.   Bays    CPI Cap   R & M   Roof  RE Tax   Ins

------------------------------------------------------------------------------------------------------------------------------------
<S>     <C>                       <C>              <C>           <C>         <C>       <C>     <C>       <C>     <C>   <C>      <C>
  198           COLTON
------------------------------------------------------------------------------------------------------------------------------------
  206          FAIRFIELD
------------------------------------------------------------------------------------------------------------------------------------
  208           TULARE
------------------------------------------------------------------------------------------------------------------------------------
  211           KINGMAN
------------------------------------------------------------------------------------------------------------------------------------
  212          BULLHEAD
------------------------------------------------------------------------------------------------------------------------------------
  213         LAKE HAVASU
------------------------------------------------------------------------------------------------------------------------------------
  220      SAN LUIS OBISBO
------------------------------------------------------------------------------------------------------------------------------------
  221          VACAVILLE
------------------------------------------------------------------------------------------------------------------------------------
  226         LONG BEACH
------------------------------------------------------------------------------------------------------------------------------------
  230         ALISO VIEJO
------------------------------------------------------------------------------------------------------------------------------------
  238           FILMORE
------------------------------------------------------------------------------------------------------------------------------------
  239           VISALIA
------------------------------------------------------------------------------------------------------------------------------------
  260            TEMPE
------------------------------------------------------------------------------------------------------------------------------------
  265          MESA, AZ.
------------------------------------------------------------------------------------------------------------------------------------
  266    PHOENIX / THOMAS RD.
------------------------------------------------------------------------------------------------------------------------------------
  267   PHOENIX / GREENWAY PKWY.
------------------------------------------------------------------------------------------------------------------------------------
  268     PHOENIX / CACTUS RD.
------------------------------------------------------------------------------------------------------------------------------------
  293   SAN DIEGO / MIRAMAR RD.
------------------------------------------------------------------------------------------------------------------------------------
  294    SAN DIEGO / BROADWAY
------------------------------------------------------------------------------------------------------------------------------------
  002          EL MONTE           $ 5,164.20        $0.00         $0.00       4,800      5       25%       TEN    TEN    TEN    TEN
------------------------------------------------------------------------------------------------------------------------------------
  005          FULLERTON          $ 3,094.56        $0.00         $0.00       4,000      4       25%       TEN    TEN    TEN    TEN
------------------------------------------------------------------------------------------------------------------------------------
  022          LAWNDALE           $ 2,329.62        $0.00         $0.00       3,000      3       25%       TEN    TEN    TEN    TEN
------------------------------------------------------------------------------------------------------------------------------------
        LAWNDALE - Addt'l Space   $ 2,152.78        $0.00         $0.00       1,200      3       15%       TEN    TEN    TEN    TEN
------------------------------------------------------------------------------------------------------------------------------------
  029       EAST SAN DIEGO        $ 4,200.00        $0.00         $0.00       5,000      6       15%       TEN     LL    TEN    TEN
------------------------------------------------------------------------------------------------------------------------------------
  033           ANAHEIM           $   -             $0.00         $0.00       4,970      6       15%       TEN    TEN    TEN    TEN
------------------------------------------------------------------------------------------------------------------------------------
  052         CULVER CITY         $ 6,554.46        $0.00         $0.00       4,400      4       12%       TEN    TEN    TEN    TEN
------------------------------------------------------------------------------------------------------------------------------------
  101           FONTANA           $ 5,280.36       $862.67        $0.00       5,000      8       15%       TEN     LL    TEN    TEN
------------------------------------------------------------------------------------------------------------------------------------
  134          BERKELEY           $ 4,981.27        $0.00         $0.00       4,000              25%       TEN    TEN    TEN    TEN
------------------------------------------------------------------------------------------------------------------------------------
  135    S. DIEGO-MIRAMAR RD.     $ 5,515.97       $475.00        $0.00       3,900      5       25%       TEN     LL    TEN    L/T*
------------------------------------------------------------------------------------------------------------------------------------
  145         BELLFLOWER          $ 2,861.24        $0.00         $0.00       3,800      5       15%       TEN    TEN    TEN    TEN
------------------------------------------------------------------------------------------------------------------------------------
  155            NAPA             $ 5,663.12        $0.00         $0.00       3,900              20%       TEN    TEN    TEN    TEN
------------------------------------------------------------------------------------------------------------------------------------
  172          GLENDORA           $ 5,000.00        $0.00         $0.00       5,200      8       15%       TEN     LL    TEN    TEN
------------------------------------------------------------------------------------------------------------------------------------
  173         SAN MARCOS          $ 6,500.00       $666.17        $0.00       5,000      6       15%       TEN     LL    TEN    TEN
------------------------------------------------------------------------------------------------------------------------------------
  176           SANTEE            $ 7,513.30      $1,378.00       $0.00       5,200      8       15%       TEN     LL    TEN    TEN
------------------------------------------------------------------------------------------------------------------------------------
  178          OCEANSIDE          $ 7,142.81      $1,083.00       $0.00       5,000      6       25%       TEN     LL    TEN    TEN
------------------------------------------------------------------------------------------------------------------------------------
  187           CYPRESS           $ 8,225.00       $940.00        $0.00       4,700      7       15%       TEN     LL    TEN    TEN
------------------------------------------------------------------------------------------------------------------------------------
  193         WESTMINSTER         $ 5,233.11        $0.00         $0.00       4,000      5       30%       TEN     LL    TEN    TEN
------------------------------------------------------------------------------------------------------------------------------------
  195           MERCED            $ 5,770.68        $0.00         $0.00       4,400      6       25%       TEN    TEN    TEN    TEN
------------------------------------------------------------------------------------------------------------------------------------
  205           MADERA            $ 5,192.18        $0.00         $0.00       4,400      6       15%       TEN    TEN    TEN    TEN
------------------------------------------------------------------------------------------------------------------------------------
  207        ROHNERT PARK         $ 5,928.81        $0.00         $0.00       4,400      6       25%       TEN    TEN    TEN    TEN
------------------------------------------------------------------------------------------------------------------------------------
  207    ROHNERT PARK -Ground      $ 163.00         $0.00         $0.00       3,863      0       25%       TEN    TEN    TEN    TEN
------------------------------------------------------------------------------------------------------------------------------------
  210           BLYTHE            $ 3,728.34       $150.00        $0.00       4,400      6       20%       TEN    TEN    TEN    TEN
------------------------------------------------------------------------------------------------------------------------------------
  214          YUBA CITY          $ 4,778.00        $0.00         $0.00       4,400      6       15%       TEN    TEN    TEN    TEN
------------------------------------------------------------------------------------------------------------------------------------
  216           GARDENA           $ 4,000.00        $0.00         $0.00       5,030      5       25%       TEN    TEN    TEN    TEN
------------------------------------------------------------------------------------------------------------------------------------
  224     SANTA ANA / BRISTOL     $ 6,585.50      $2,640.33       $0.00       8,550              15%       TEN     LL    TEN    TEN
------------------------------------------------------------------------------------------------------------------------------------
  227          OROVILLE           $ 4,400.00        $0.00         $0.00       4,400              15%       TEN    TEN    TEN    TEN
------------------------------------------------------------------------------------------------------------------------------------
  228   L.A. / HOLLYWOOD BLVD.    $ 5,200.00        $0.00         $0.00       4,500      5      NONE       TEN     LL    TEN    TEN
------------------------------------------------------------------------------------------------------------------------------------
  232          SANTA ANA          $ 4,878.00        $0.00        $271.11      4,878             NONE       TEN     LL    TEN    TEN
------------------------------------------------------------------------------------------------------------------------------------
  235          BRUNDAGE           $ 3,587.71        $0.00         $0.00       2,750      5      NONE       TEN     LL    TEN    TEN
------------------------------------------------------------------------------------------------------------------------------------
  236           CHESTER           $    -            $0.00         $0.00       4,000      5      NONE       TEN     LL    TEN    TEN
------------------------------------------------------------------------------------------------------------------------------------
  237         PORTERVILLE         $ 1,950.00        $76.00       $230.00      5,030             8-10%      TEN     LL    TEN *  TEN
------------------------------------------------------------------------------------------------------------------------------------

                                                                      This Lease Abstract does not contain any information regarding
                     contingent liabilities or indemnification provisions. Please review each lease independently for such purposes.
</TABLE>
                                       4
<PAGE>   58

<TABLE>
<CAPTION>
----------------------------------------------------------------------------------------------------------------------------------
                                      Core/Non-core
 Store         Location                Terminated/  Lease Begin   Lease End            Options           Increase Dates
                                        Assigned
----------------------------------------------------------------------------------------------------------------------------------
<S>     <C>                         <C>             <C>           <C>             <C>              <C>
  243          MILPITAS                 Non-Core     3/1/1992     2/28/2002           4-5 YR OPT                 NONE
-----------------------------------------------------------------------------------------------------------------------------------
  250          ANAHEIM                  Non-Core     3/1/1991     8/31/2002              NONE                    NONE
-----------------------------------------------------------------------------------------------------------------------------------
  251      CARMEL MTN. RANCH            Non-Core     9/1/2000     8/30/2015           2-5 YR OPT              9/1/05,10
-----------------------------------------------------------------------------------------------------------------------------------
  256  LIVERMORE TRAINING CENTER        Non-Core     1/1/1999     12/31/2001          1-3 YR OPT                 NONE
-----------------------------------------------------------------------------------------------------------------------------------
  261   PHOENIX / CAMELBACK RD.         Non-Core     5/1/1967     4/30/2015           2-5 YR OPT            5/1/2002,07,12
-----------------------------------------------------------------------------------------------------------------------------------
  262    PHOENIX / DUNLAP RD.           Non-Core     4/1/1993     3/31/2003              NONE           4% OF Gross Sales Qtrly.
-----------------------------------------------------------------------------------------------------------------------------------
  263        GLENDALE, AZ.              Non-Core     12/8/1995    12/7/2015           2-5 YR OPT              12/8/05,10
-----------------------------------------------------------------------------------------------------------------------------------
  264     PHOENIX / 27TH AVE.           Non-Core     8/8/1994     8/7/2009           2-5 YR OPT                  NONE
-----------------------------------------------------------------------------------------------------------------------------------
  270         SCOTTSDALE                Non-Core     11/16/1998   5/18/2019           2-5 YR OPT            11/16/03,08,13
-----------------------------------------------------------------------------------------------------------------------------------
  272           DUBLIN                  Non-Core     1/21/2000    1/20/2015           2-5 YR OPT             1/21/05,10
-----------------------------------------------------------------------------------------------------------------------------------
  278          LOS GATOS                Non-Core     10/20/1999   4/2/2011              NONE               Yearly on 11/1
-----------------------------------------------------------------------------------------------------------------------------------
  282     SAN DIEGO / CONVOY            Non-Core     9/1/1998     8/31/2013              NONE              9/1/2003, 2008
-----------------------------------------------------------------------------------------------------------------------------------
  283     ANAHEIM / LA PALMA            Non-Core     8/1/1995     10/31/2004             NONE          Percentage Rent - Yearly
-----------------------------------------------------------------------------------------------------------------------------------
  302          SAN RAMON                Non-Core     3/27/2000    3/31/2005           1-5 YR OPT      4/1/2001 Yearly thereafter
-----------------------------------------------------------------------------------------------------------------------------------
  014     SAN PEDRO - Closed           Terminated    LEASE TERMINATED 1/1/00
-----------------------------------------------------------------------------------------------------------------------------------
  018     WAREHOUSE SOUTHERN           Terminated    LEASE TERMINATED 12/31/00
-----------------------------------------------------------------------------------------------------------------------------------
  025          SANTA ANA               Terminated    LEASE TERMINATED 11/30/00
-----------------------------------------------------------------------------------------------------------------------------------
  027          LANCASTER               Terminated    LEASE TERMINATED 5/31/01
-----------------------------------------------------------------------------------------------------------------------------------
  030         CHULA VISTA              Terminated    LEASE TERMINATED 4/14/01
-----------------------------------------------------------------------------------------------------------------------------------
  031       AZUSA - Closed             Terminated    LEASE TERMINATED 12/1/00
-----------------------------------------------------------------------------------------------------------------------------------
  034          EL CAJON                Terminated    LEASE TERMINATED 3/13/01
-----------------------------------------------------------------------------------------------------------------------------------
  035           ONTARIO                Terminated    LEASE TERMINATED 7/23/00
-----------------------------------------------------------------------------------------------------------------------------------
  048           TARZANA                Terminated    LEASE TERMINATED 2/28/01
-----------------------------------------------------------------------------------------------------------------------------------
  048     TARZANA-Parking Lot          Terminated    LEASE TERMINATED 2/28/01
-----------------------------------------------------------------------------------------------------------------------------------
  050         SIMI VALLEY              Terminated    LEASE TERMINATED 4/30/01
-----------------------------------------------------------------------------------------------------------------------------------
  051       L. A.-SO. MAIN             Terminated    LEASE TERMINATED 1/31/00
-----------------------------------------------------------------------------------------------------------------------------------
  090     SAN JOSE-HILLSDALE           Terminated    LEASE TERMNATED 3/31/00
-----------------------------------------------------------------------------------------------------------------------------------
  099          EL CENTRO               Terminated    LEASE TERMINATED 1/1/00
-----------------------------------------------------------------------------------------------------------------------------------
  106            RENO                  Terminated    LEASE TERMINATED 1/31/01
-----------------------------------------------------------------------------------------------------------------------------------
  151         SANTA ROSA               Terminated    LEASE TERMINATED 4/15/01
-----------------------------------------------------------------------------------------------------------------------------------
  185          CAMARILLO               Terminated    LEASE TERMINATED MARCH 2000
-----------------------------------------------------------------------------------------------------------------------------------
  188          TEMECULA                Terminated    LEASE TERMINATED 12/31/00
-----------------------------------------------------------------------------------------------------------------------------------
  217            RENO                  Terminated    LEASE TERMINATED 7/1/00
-----------------------------------------------------------------------------------------------------------------------------------
  225         NW BAKERSFIELD           Terminated    LEASE TERMINATED 10/13/00
-----------------------------------------------------------------------------------------------------------------------------------
  234           OXNARD                 Terminated    LEASE TERMINATED 12/28/00
-----------------------------------------------------------------------------------------------------------------------------------
  288   SAN DIEGO / GRAND AVE.         Terminated    LEASE TERMINATED 12/31/00
-----------------------------------------------------------------------------------------------------------------------------------

-----------------------------------------------------------------------------------------------------------------------------------
                TOTALS
-----------------------------------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------

 Store         Location               CPI Index                             Comments

------------------------------------------------------------------------------------------------------
<S>     <C>                        <C>                   <C>
  243          MILPITAS            SF/Oakland                  To Be Assigned/Subleased
------------------------------------------------------------------------------------------------------
  250          ANAHEIM                NONE                     To Be Assigned/Terminated
------------------------------------------------------------------------------------------------------
  251      CARMEL MTN. RANCH        U.S. City                       To Be Assigned
------------------------------------------------------------------------------------------------------
  256  LIVERMORE TRAINING CENTER    Schedule                          Subleased
------------------------------------------------------------------------------------------------------
  261   PHOENIX / CAMELBACK RD.     Schedule                        To Be Assigned
------------------------------------------------------------------------------------------------------
  262    PHOENIX / DUNLAP RD.         N/A                             Subleased
------------------------------------------------------------------------------------------------------
  263        GLENDALE, AZ.          Schedule                          Subleased
------------------------------------------------------------------------------------------------------
  264     PHOENIX / 27TH AVE.       Schedule                        To Be Assigned
------------------------------------------------------------------------------------------------------
  270         SCOTTSDALE            Schedule                          Subleased
------------------------------------------------------------------------------------------------------
  272           DUBLIN              U.S. City                       To Be Assigned
------------------------------------------------------------------------------------------------------
  278          LOS GATOS           SF/Oakland                       To Be Assigned
------------------------------------------------------------------------------------------------------
  282     SAN DIEGO / CONVOY        Schedule                        To Be Assigned
------------------------------------------------------------------------------------------------------
  283     ANAHEIM / LA PALMA          N/A                           To Be Assigned
------------------------------------------------------------------------------------------------------
  302          SAN RAMON           SF/Oakland                   Terminated by Winston
------------------------------------------------------------------------------------------------------
  014     SAN PEDRO - Closed
------------------------------------------------------------------------------------------------------
  018     WAREHOUSE SOUTHERN
------------------------------------------------------------------------------------------------------
  025          SANTA ANA
------------------------------------------------------------------------------------------------------
  027          LANCASTER
------------------------------------------------------------------------------------------------------
  030         CHULA VISTA
------------------------------------------------------------------------------------------------------
  031       AZUSA - Closed
------------------------------------------------------------------------------------------------------
  034          EL CAJON
------------------------------------------------------------------------------------------------------
  035           ONTARIO
------------------------------------------------------------------------------------------------------
  048           TARZANA
------------------------------------------------------------------------------------------------------
  048     TARZANA-Parking Lot
------------------------------------------------------------------------------------------------------
  050         SIMI VALLEY
------------------------------------------------------------------------------------------------------
  051       L. A.-SO. MAIN
------------------------------------------------------------------------------------------------------
  090     SAN JOSE-HILLSDALE
------------------------------------------------------------------------------------------------------
  099          EL CENTRO
------------------------------------------------------------------------------------------------------
  106            RENO
------------------------------------------------------------------------------------------------------
  151         SANTA ROSA
------------------------------------------------------------------------------------------------------
  185          CAMARILLO
------------------------------------------------------------------------------------------------------
  188          TEMECULA
------------------------------------------------------------------------------------------------------
  217            RENO
------------------------------------------------------------------------------------------------------
  225         NW BAKERSFIELD
------------------------------------------------------------------------------------------------------
  234           OXNARD
------------------------------------------------------------------------------------------------------
  288   SAN DIEGO / GRAND AVE.
------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------
                TOTALS
------------------------------------------------------------------------------------------------------
</TABLE>

<TABLE>
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------

 Store         Location            Mo Rent         Cam Imp.      Tax Imp.    Sq. Ft.   Bays    CPI Cap   R & M   Roof  RE Tax   Ins

------------------------------------------------------------------------------------------------------------------------------------
<S>     <C>                       <C>              <C>           <C>         <C>       <C>     <C>       <C>     <C>   <C>      <C>
  243          MILPITAS          $ 6,051.18       $733.86        $0.00       5,400             3-7%       TEN      LL   TEN     TEN
------------------------------------------------------------------------------------------------------------------------------------
  250          ANAHEIM           $ 6,479.00       $951.25        $0.00       6,200             NONE       TEN     TEN   TEN     TEN
------------------------------------------------------------------------------------------------------------------------------------
  251      CARMEL MTN. RANCH     $ 8,020.83       $696.00       $330.00      4,400              15%       TEN      LL   TEN     TEN
------------------------------------------------------------------------------------------------------------------------------------
  256 LIVERMORE TRAINING CENTER  $ 1,354.00       $176.72        $0.00       1,504             NONE       TEN      LL   TEN     TEN
------------------------------------------------------------------------------------------------------------------------------------
  261   PHOENIX / CAMELBACK RD.  $ 6,000.00       $121.00       $600.00      7,628             NONE       TEN     TEN   TEN     TEN
------------------------------------------------------------------------------------------------------------------------------------
  262    PHOENIX / DUNLAP RD.    $ 2,246.20        $0.00         $0.00       6,800             NONE       TEN      LL   TEN     TEN
------------------------------------------------------------------------------------------------------------------------------------
  263        GLENDALE, AZ.       $ 4,830.00        $94.59       $425.00      5,500             NONE       TEN     TEN   TEN     TEN
------------------------------------------------------------------------------------------------------------------------------------
  264     PHOENIX / 27TH AVE.    $ 7,500.00      $1,527.45      $216.66      20,000            NONE       TEN     TEN   TEN     TEN
------------------------------------------------------------------------------------------------------------------------------------
  270         SCOTTSDALE         $ 10,265.41       $0.00         $0.00                          12%       TEN     TEN   TEN     TEN
------------------------------------------------------------------------------------------------------------------------------------
  272           DUBLIN           $ 20,427.25       $0.00         $0.00       17,626             13%       TEN     TEN   TEN     TEN
------------------------------------------------------------------------------------------------------------------------------------
  278          LOS GATOS         $ 14,182.46       $0.00         $0.00       4,700              8%        TEN     TEN   TEN     TEN
------------------------------------------------------------------------------------------------------------------------------------
  282     SAN DIEGO / CONVOY     $ 5,000.00        $0.00         $0.00       5030+             NONE       TEN      LL   TEN     TEN
------------------------------------------------------------------------------------------------------------------------------------
  283     ANAHEIM / LA PALMA     $ 4,900.00       $117.00       $309.00      7,000                        TEN      LL   TEN     TEN
------------------------------------------------------------------------------------------------------------------------------------
  302          SAN RAMON         $    -            $0.00         $0.00                 10      2-5%       TEN      LL   TEN     TEN
------------------------------------------------------------------------------------------------------------------------------------
  014     SAN PEDRO - Closed
------------------------------------------------------------------------------------------------------------------------------------
  018     WAREHOUSE SOUTHERN
------------------------------------------------------------------------------------------------------------------------------------
  025          SANTA ANA
------------------------------------------------------------------------------------------------------------------------------------
  027          LANCASTER
------------------------------------------------------------------------------------------------------------------------------------
  030         CHULA VISTA
------------------------------------------------------------------------------------------------------------------------------------
  031       AZUSA - Closed
------------------------------------------------------------------------------------------------------------------------------------
  034          EL CAJON
------------------------------------------------------------------------------------------------------------------------------------
  035           ONTARIO
------------------------------------------------------------------------------------------------------------------------------------
  048           TARZANA         $    -
------------------------------------------------------------------------------------------------------------------------------------
  048     TARZANA-Parking Lot   $    -
------------------------------------------------------------------------------------------------------------------------------------
  050         SIMI VALLEY
------------------------------------------------------------------------------------------------------------------------------------
  051       L. A.-SO. MAIN
------------------------------------------------------------------------------------------------------------------------------------
  090     SAN JOSE-HILLSDALE
------------------------------------------------------------------------------------------------------------------------------------
  099          EL CENTRO
------------------------------------------------------------------------------------------------------------------------------------
  106            RENO
------------------------------------------------------------------------------------------------------------------------------------
  151         SANTA ROSA
------------------------------------------------------------------------------------------------------------------------------------
  185          CAMARILLO
------------------------------------------------------------------------------------------------------------------------------------
  188          TEMECULA
------------------------------------------------------------------------------------------------------------------------------------
  217            RENO
------------------------------------------------------------------------------------------------------------------------------------
  225         NW BAKERSFIELD
------------------------------------------------------------------------------------------------------------------------------------
  234           OXNARD
------------------------------------------------------------------------------------------------------------------------------------
  288   SAN DIEGO / GRAND AVE.
------------------------------------------------------------------------------------------------------------------------------------

------------------------------------------------------------------------------------------------------------------------------------
                TOTALS          $1,005,314.57    $50,531.84    $7,806.30
------------------------------------------------------------------------------------------------------------------------------------

                                                                      This Lease Abstract does not contain any information regarding
                     contingent liabilities or indemnification provisions. Please review each lease independently for such purposes.
</TABLE>
                                       5