Document:

FIFTH AMENDMENT TO LOAN AGREEMENT

This Fifth  Amendment to Loan Agreement (the  "Amendment") is executed this 11th
day of January,  2000, by and between DYNATRONICS  CORPORATION  ("Borrower") and
ZIONS FIRST NATIONAL BANK (the "Lender").

         WHEREAS,  Borrower and Lender  entered into that certain Loan Agreement
dated February 23, 1995, which was subsequently amended on several occasions and
provides, among other things, for Lender to extend a Revolving Line of Credit in
the maximum  principal  amount of Three  Million Five Hundred  Thousand  Dollars
($3,500,000.00) (the "Loan Agreement"); and

         WHEREAS,  Borrower  has  requested  Lender  to  increase  and renew the
Revolving Line of Credit and amend certain covenants; and

         WHEREAS,  Lender  has  agreed to such  request  provided,  among  other
things, Borrower executes and delivers this Amendment.

         NOW THEREFORE, for valuable consideration,  the receipt and sufficiency
of which is hereby  acknowledged,  Borrower  and  Lender  hereby  amend the Loan
Agreement as follows:

         1.       The Revolving Line of Credit is hereby increased from Three
                  Million Five Hundred Thousand Dollars ($3,500,000.00) to Three
                  Million Seven Hundred Fifty Thousand Dollars ($3,750,000.00)

         2.       The section titled Borrowing Base, is hereby deleted in its
                  entirety and replaced with the following:

         Borrowing  Base.  The words  "Borrowing  Base" mean,  as  determined by
         Lender from time to time, the lesser of (a)  $3,750,000.00;  or (b) the
         sum (i) 80.00% of the aggregate amount of Eligible Accounts,  plus (ii)
         40.00% of the  aggregate  amount of Eligible  Inventory,  not to exceed
         $1,650,000.00.

         3.       The section titled Eligible Inventory, subsection (d) is
                  hereby deleted in its entirety.

         4.       The reference to the maturity date of the Revolving Line of
                  Credit is hereby deleted in its entirety.

         5.       A new section entitled Losses, is hereby added to the Loan
                  Agreement as follows:

         Losses. Borrower's losses for the quarterly periods ending December 31,
         1999 and March  31,  2000  shall not  exceed $  100,000.00  for  either
         quarter.   Thereafter,   Borrower   shall  not  incur  losses  for  two
         consecutive quarters.

         Except as amended  herein,  all other terms and  conditions of the Loan
Agreement remain in full force and effect and are applicable to this Agreement.

first above written.

         IN WITNESS WHEREOF, Borrower and Lender have executed this Amendment as
         of the date and year

         Borrower:                                    Lender:

         DYNATRONICS CORPORATION                      ZIONS FIRST NATIONAL BANK

         By: /s/ Kelvyn H. Cullimore, Jr.             By: /s/ David Dransfield
            -----------------------------                -----------------------
            Kelvyn H. Cullimore, Jr.,                    David Dransfield
            President/CEO                                Vice PresidentRECORDATION REQUESTED BY:

   ZIONS FIRST NATIONAL BANK
   #1 SOUTH MAIN STREET
   P.O. BOX 25822
   SALT LAKE CITY, UT 84125

WHEN RECORDED MAIL TO:

   ZIONS FIRST NATIONAL BANK
   #1 SOUTH MAIN STREET
   P.O. BOX 25822
   SALT LAKE CITY, UT 84125     SPACE ABOVE THIS LINE IS FOR RECORDER'S USE ONLY

                         REVOLVING CREDIT DEED OF TRUST

THIS DEED OF TRUST IS DATED  JANUARY 11, 2000,  among  DYNATRONICS  CORPORATION,
with vesting a! follows,  DYNATRONICS LASER CORPORATION, a Utah Corporation, now
known as DYNATRONICS CORPORATION,  whose address is 7030 PARK CENTRE DRIVE, SALT
LAKE CITY, UT 84121 (referred to below as "Trustor"); ZIONS FIRST NATIONAL BANK,
whose address is #1 SOUTH MAIN STREET,  P.O. BOX 25822, SALT LAKE CITY, UT 84125
(referred to below  sometimes as "Lender" and sometimes as  "Beneficiary");  and
ZIONS FIRST NATIONAL BANK,  whose address is #1 SOUTH MAIN STREET SLC, UT. 84111
(referred to below as "Trustee").

CONVEYANCE AND GRANT.  For valuable consideration, Trustor Irrevocably grants
and conveys to Trustee In trust, with power of sale, for the benefit of Lender
as Beneficiary, all of Trustor's right, tide, and interest in and to the
following described real property,  together with all existing  or  subsequently
erected  or  affixed  buildings,   improvements  and fixtures;  all easements,
rights of way, and  appurtenances;  all water,  water rights and ditch rights
(including  stock in utilities with ditch or irrigation rights);  and all other
rights,  royalties,  and  profits  relating to the real property,  including
without limitation all minerals,  oil, gas,  geothermal and similar  matters,
located  in  SALT  LAKE  County,  State  of Utah  (the  'Real Property"):

         SEE ATTACHED SCHEDULE "A"

The Real  Property or its address is commonly  known as 7030 PARK CENTRE  DRIVE,
SALT LAKE CITY,  UT,  84121.  The Real  Property  tax  identification  number is
22-28-103-001-000.

Trustor  presently  assigns to Lender (also known as Beneficiary in this Deed of
Trust) all of  Trustor's  right,  title,  and interest in and to all present and
future  leases of the  Property  and all Rents from the  Property.  In addition,
Trustor grants Lender a Uniform  Commercial Code security  interest in the Rents
and the Personal Property defined below.

DEFINITIONS.  The following words shall have the following meanings when used in
this Deed of Trust. Terms not otherwise defined in this Deed of Trust shall have
the  meanings  attributed  to such terms in the  Uniform  Commercial  Code.  All
references  to dollar  amounts  shall mean amounts in lawful money of the United
States of America.

         Beneficiary.  The word  "Beneficiary"  means  MONS FIRST NATIONAL BANK,
         its successors and assigns.  MONS FIRST NATIONAL  BANK also is referred
         to as "Lender" in this Deed of Trust.

         Deed of Trust.  The words "Deed of Trust" mean this Deed of Trust among
         Trustor,  Lender,  and Trustee,  and includes  without  limitation  all
         assignment and security  interest  provisions  relating to the Personal
         Property  and  Rents.  Existing   Indebtedness.   The  words  "Existing
         Indebtedness"  mean the  indebtedness  described  below in the Existing
         Indebtedness section of this Deed of Trust.

         Guarantor.  The word "Guarantor" means and includes without limitation
         any and all guarantors, sureties, and accommodation parties in
         connection with the Indebtedness.

         Improvements.  The  word  "Improvements"  means  and  includes  without
         limitation all existing and future improvements, buildings, structures,
         mobile  homes  affixed  on the Real  Property,  facilities,  additions,
         replacements and other construction on the Real Property.

         Indebtedness.  The word "Indebtedness' means all principal and interest
         payable under the Note and any amounts expended or  advanced  by Lender
         to discharge obligations of Trustor or expenses incurred  by Trustee or
         Lender to enforce obligations of Trustor  under this Deed of Trust,
         together  with  interest on such amounts as provided in this Deed of
         Trust.

                                        1
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01-11-2000                       DEED OF TRUST                            Page 2
                                  (Continued)

         Specifically,  this Deed of Trust secures a revolving  line of credit,
         which  obligates  Lender to make advances to Trustor so long as Trustor
         complies with all the terms of the Note.

         Lender.  The word "Lender" means ZIONS FIRST NATIONAL BANK, its
         successors and assigns.

         Note.  The word "Note" means the Note dated January 11, 2000, in the
         principal amount of $3,750,000.00 from Trustor to Lender, together with
         all renewals, extensions, modifications, refinancings, and
         substitutions for the Note.
         NOTICE TO TRUSTOR: THE NOTE CONTAINS A VARIABLE INTEREST RATE.

         Personal  Property.  The words "Personal  Property" mean all equipment,
         fixtures,  and other  articles of personal  property  now or  hereafter
         owned by Trustor,  and now or hereafter attached or affixed to the Real
         Property;  together with all accessions,  parts,  and additions to, all
         replacements of, and all substitutions  for, any of such property;  and
         together with all proceeds  (including without limitation all insurance
         proceeds and refunds of premiums) from any sale or other disposition of
         the Property.

         Property.  The word "Property" means collectively the Real Property and
         the Personal Property.

         Real Property.  The words "Real Property" mean the property, interests
         and rights described above in the "Conveyance and Grant" section.

         Related  Documents.  The words  "Related  Documents"  mean and  include
         without  limitation  all  promissory  notes,  credit  agreements,  loan
         agreements,  environmental agreements, guaranties, security agreements,
         mortgages,  deed of trust,  and all other  instruments,  agreements and
         documents,  wether now or hereafter  existing,  executed in  connection
         with the indebtedness.

         Rents.  The word "Rents" means all present and future rents,  revenues,
         income, issues, royalties, profits, and other benefits derived from the
         Property.

         Trustee.  The word "Trustee" means ZIONS FIRST NATIONAL BANK and any
         substitute or successor trustee.

         Trustor.  The word "Trustor" means any and all persons and entities
         executing this Deed of Trust, including without limitation all Trustors
         named above.

THIS DEED OF TRUST,  INCLUDING THE ASSIGNMENT OF RENTS AND THE SECURITY INTEREST
IN THE RENTS  AND  PERSONAL  PROPERTY,  IS GIVEN TO SECURE  (1)  PAYMENT  OF THE
INDEBTEDNESS AND (2) PERFORMANCE OF ANY AND ALL OBLIGATIONS OF TRUSTOR UNDER THE
NOTE, THE RELATED DOCUMENTS, AND THIS DEED OF TRUST. THIS DEED OF TRUST IS GIVEN
AND ACCEPTED ON THE FOLLOWING TERMS:

PAYMENT AND  PERFORMANCE.  Except as  otherwise  provided in this Deed of Trust,
Trustor  shall pay to Lender all  amounts  secured by this Deed of Trust as they
become due, and shall  strictly and in a timely manner  perform all of Trustor's
obligations under the Note, this Deed of Trust, and the Related Documents.

POSSESSION AND MAINTENANCE OF THE PROPERTY.  Trustor agrees that Trustor's
possession and of the Property shall be governed by the following provisions:

         Possession  and Use.  Until  the  occurrence  of an  Event of  Default,
         Trustor may (a) remain in possession  and control of the Property,  (b)
         use, operate or manage the Property, and (c) collect any Rents from the
         Property. The following provisions relate to the use of the Property or
         to other  limitations on the Property.  This instrument is a Trust Deed
         executed in  conformity  with the Utah Trust Deed Act, UCA 57-1-19,  et
         seq.

         Duty to Maintain.  Trustor shall maintain the Property in tenantable
         condition and promptly perform all repairs, replacements, and
         maintenance necessary to preserve its value.

                                        2
<PAGE>

01-11-2000                       DEED OF TRUST                            Page 3
                                  (Continued)

         Hazardous   Substances.   The  terms  "hazardous   waste,"   "hazardous
         substance," "disposal," "release," and "threatened release," as used in
         this Deed of Trust,  shall have the same  meanings  as set forth in the
         Comprehensive Environmental Response,  Compensation,  and Liability Act
         of 1980, as amended, 42 U.S.C.  Section 9601, et seq.  ("CERCLA"),  the
         Superfund  Amendments  and  Reauthorization  Act of 1986,  Pub.  L. No.
         99-499 ("SARA"), the Hazardous Materials  Transportation Act, 49 U.S.C.
         Section 1801, et seq., the Resource  Conservation  and Recovery Act, 42
         U.S.C.  Section  6901, et seq.,  or other  applicable  state or Federal
         laws,  rules, or regulations  adopted pursuant to any of the foregoing.
         The terms  "hazardous  waste"  and  "hazardous  substance"  shall  also
         include, without limitation, petroleum and petroleum by-products or any
         fraction  thereof and  asbestos.  Trustor  represents  and  warrants to
         Lender  that:  (a)  During  the period of  Trustor's  ownership  of the
         Property,  there  has been no use,  generation,  manufacture,  storage,
         treatment,  disposal,  release or  threatened  release of any hazardous
         waste or substance by any person on, under, about or from the Property;
         (b) Trustor has no  knowledge  of, or reason to believe  that there has
         been,  except as previously  disclosed to and acknowledged by Lender in
         writing,  (i) any use,  generation,  manufacture,  storage,  treatment,
         disposal,  release,  or threatened  release of any  hazardous  waste or
         substance on, under,  about or from the Property by any prior owners or
         occupants of the Property or (ii) any actual or  threatened  litigation
         or claims of any kind by any person  relating to such matters;  and (c)
         Except  as  previously  disclosed  to and  acknowledged  by  Lender  in
         writing, (i) neither Trustor nor any tenant, contractor, agent or other
         authorized  user of the  Property  shall  use,  generate,  manufacture,
         store,  treat,  dispose of, or release any hazardous waste or substance
         on, under,  about or from the Property and (ii) any such activity shall
         be conducted in compliance  with all  applicable  federal,  state,  and
         local laws,  regulations and ordinances,  including without  limitation
         those  laws,  regulations,  and  ordinances  described  above.  Trustor
         authorizes  Lender and its agents to enter  upon the  Property  to make
         such  inspections and tests, at Trustor's  expense,  as Lender may deem
         appropriate  to determine  compliance of the Property with this section
         of the Deed of Trust.  Any inspections or tests made by Lender shall be
         for  Lender's  purposes  only and shall not be  construed to create any
         responsibility  or liability on the part of Lender to Trustor or to any
         other person. The representations  and warranties  contained herein are
         based on  Trustor's  due  diligence in  investigating  the Property for
         hazardous waste and hazardous  substances.  Trustor hereby (a) releases
         and  waives  any  future  claims   against   Lender  for  indemnity  or
         contribution  in the event Trustor  becomes liable for cleanup or other
         costs  under  any such  laws,  and (b)  agrees  to  indemnify  and hold
         harmless  Lender  against  any and  all  claims,  losses,  liabilities,
         damages,   penalties,   and  expenses  which  Lender  may  directly  or
         indirectly sustain or suffer resulting from a breach of this section of
         the  Deed  of  Trust  or  as a  consequence  of  any  use,  generation,
         manufacture,  storage,  disposal,  release or  threatened  release of a
         hazardous waste or substance on the properties.  The provisions of this
         section of the Deed of Trust,  including  the  obligation to indemnify,
         shall survive the payment of the  indebtedness and the satisfaction and
         reconveyance  of the  lien  of this  Deed of  Trust  and  shall  not be
         affected  by Lender's  acquisition  of any  interest  in the  Property,
         whether by foreclosure or otherwise.

         Nuisance,  Waste.  Trustor  shall not  cause,  conduct  or  permit  any
         nuisance or commit,  permit,  or suffer any stripping of or waste on or
         to the Property or any portion of the  Property.  Without  limiting the
         generality of the foregoing,  Trustor will not remove,  or grant to any
         other party the right to remove any timber, minerals (including oil and
         gas),  soil,  gravel or rock products without the prior written consent
         of Lender.

         Removal  of  Improvements.  Trustor  shall not  demolish  or remove any
         Improvements  from the Real Property  without the prior written consent
         of Lender.  As a condition to the removal of any  Improvements,  Lender
         may  require  Trustor to make  arrangements  satisfactory  to Lender to
         replace such  Improvements  with  Improvements of at least equal value.
         Notwithstanding  the  foregoing,  Trustor may  make any changes  deemed
         necessary in the ordinary  course of business  without  Lender's  prior
         approval.

         Compliance  with  Governmental  Requirements.  Trustor  shall  promptly
         comply with all laws, ordinances, and regulations,  now or hereafter in
         effect  of  all  governmental  authorities  applicable  to  the  use or
         occupancy of the Property,  including without limitation, the Americans
         With  Disabilities Act. Trustor may contest in good faith any such law,
         ordinance, or regulation and withhold compliance during any proceeding,
         including appropriate appeals so long as Trustor has notified Lender in
         writing  prior to doing so and so long as, in  Lender's  sole  opinion,
         Lender's  interests  in the Property  are not  jeopardized.  Lender may
         require Trustor to post adequate security or a surety bond,  reasonably
         satisfactory to Lender, to protect Lender's interest.

         Duty to  Protect.  Trustor  agrees  neither  to  abandon  nor to  leave
         unattended  the Property.  Trustor shall do all other acts, in addition
         to  those  acts  set  forth  above  in this  section,  which  from  the
         character  and  use of the Property are reasonably necessary to protect
         and preserve the Property.

DUE ON SALE - CONSENT BY LENDER.  Lender may at its option, declare immediately
due and payable all sums secured by this Deed of Trust the sale or transfer,
without the Lenders' prior written consent of all or any part of the Real
Property, or any interest in the Real Property.

                                        3
<PAGE>

01-11-2000                       DEED OF TRUST                            Page 4
                                  (Continued)

A "sale or transfer" means the conveyance of Real Property or any right, title
or interest therein; whether legal, beneficial or equitable; whether voluntary
or involuntary;  whether by outright sale, deed, installment sale contract, land
contract,  contract for deed, leasehold interest with a term greater  than three
(3) years,  lease-option  contract,  or by sale, assignment,  or transfer of any
beneficial interest  in or to any land trust holding title to the Real Property,
or by any other method of conveyance of Real Property interest.  A transfer
shall include any merger or acquisition in which there is a greater than 50%
change in  ownership  of Trustor,  if such merger or acquisition has not been
approved in writing by Lender.

TAXES AND LIENS. The following provisions relating to the taxes and liens on the
Property are a part of this Deed of Trust.  Payment.  Trustor shall pay when due
(and in all events prior to delinquency) all taxes, special taxes,  assessments,
charges (including water and sewer),  fines and impositions levied against or on
account of the  Property,  and shall pay when due all claims for work done on or
for services  rendered or material  furnished  to the  Property.  Trustor  shall
maintain the Property  free of all liens  having  priority  over or equal to the
interest  of Lender  under this Deed of Trust,  except for the lien of taxes and
assessments not due, except for the existing  indebtedness  referred to Wow, and
except as otherwise provided in this Deed of Trust.

         Right To Contest.  Trustor may withhold payment of any tax, assessment,
         or claim in connection with a good faith dispute over the obligation to
         pay, so long as Lender's  interest in the Property is not  jeopardized.
         If a lien arises or is filed as a result of  nonpayment,  Trustor shall
         within  fifteen (15) days after the lien arises or, if a lien is filed,
         within fifteen (15) days after Trustor has notice of the filing, secure
         the  discharge of the lien,  or if  requested  by Lender,  deposit with
         Lender cash or a  sufficient  corporate  surety bond or other  security
         satisfactory  to Lender in an amount  sufficient  to discharge the lien
         plus any costs and  reasonable  attorneys'  tees or other  charges that
         could accrue as a result of a  foreclosure  or sale under the lien.  In
         any contest,  Trustor  shall defend itself and Lender and shall satisfy
         any adverse judgment before enforcement  against the Property.  Trustor
         shall  name  Lender as an  additional  obligee  under any  surety  bond
         furnished in the contest proceedings.

         Evidence  of  Payment.  Trustor  shall  upon  demand  furnish to Lender
         satisfactory  evidence of payment of the taxes or assessments and shall
         authorize the appropriate governmental official to deliver to Lender at
         any time a written  statement of the taxes and assessments  against the
         Property.

         Notice of  Construction.  Trustor  shall notify Lender at least fifteen
         (15) days before any work is commenced,  any services are furnished, or
         any  materials are supplied to the Property,  if any  mechanic's  lien,
         materialmens  lien,  or other lien could be  asserted on account of the
         work,  services,  or  materials.  Trustor  will upon  request of Lender
         furnish  to Lender  advance  assurances  satisfactory  to  Lender  that
         Trustor can and will pay the cost of such  improvements.  Construction
         deemed to be in the ordinary course of business shall not be subject to
         this provision.

PROPERTY DAMAGE INSURANCE. The  following  provisions  relating  to insuring the
Property are a part of this Deed of Trust.

         Maintenance of Insurance.  Trustor shall procure and maintain  policies
         of fire insurance with standard  extended  coverage  endorsements  on a
         replacement   basis  for  the  full   insurable   value   covering  all
         Improvements  on the Real  Property  in an amount  sufficient  to avoid
         application of any coinsurance  clause,  and with a standard  mortgagee
         clause in favor of Lender.  Trustor  shall also  procure  and  maintain
         comprehensive  general liability  insurance in such coverage amounts as
         Lender may request with  trustee and Lender  being named as  additional
         insureds in such liability  insurance policies.  Additionally,  Trustor
         shall  maintain  such other  insurance,  including  but not  limited to
         hazard,  business  interruption,  and boiler  insurance,  as Lender may
         reasonably  require.  Policies  shall  be  written  in  form,  amounts,
         coverages  and basis  reasonably  acceptable  to Lender and issued by a
         company or companies  reasonably  acceptable to Lender.  Trustor,  upon
         request  of  Lender,  will  deliver  to  Lender  from  time to time the
         policies or certificates  of insurance in form  satisfactory to Lender,
         including   stipulations  that  coverages  will  not  be  cancelled  or
         diminished  without at least ten (10)  days'  prior  written  notice to
         Lender.  Each  insurance  policy  also  shall  include  an  endorsement
         providing  that coverage in favor of Lender will not be impaired in any
         way by any act,  omission  or default  of Trustor or any other  person.
         Should  the  Real  Property  at any  time  become  located  in an  area
         designated by the Director of the Federal  Emergency  Management Agency
         as a special flood hazard area,  Trustor  agrees to obtain and maintain
         Federal Flood  Insurance for the full unpaid  principal  balance of the
         loan and any prior liens on the property  securing the loan,  up to the
         maximum policy limits set under the National Flood  Insurance  Program,
         or as otherwise  required by Lender, and to maintain such insurance for
         the term of the loan.

         Application of Proceeds.  Trustor shall  promptly  notify Lender of any
         loss or  damage  to the  Property.  Lender  may  make  proof of loss it
         Trustor  fails  to do so  within  fifteen  (15)  days of the  casualty.
         Whether or not  Lender's  security  is  impaired,  Lender  may,  at its
         election,  receive and retain the proceeds of any  insurance  and apply
         the proceeds to the reduction of the Indebtedness,  payment of any lien
         affecting the Property,  or Me restoration  and repair of the Property.
         If Lender  elects to apply the  proceeds  to  restoration  and  repair,
         Trustor  shall repair or replace the damaged or destroyed  Improvements
         in a manner satisfactory to Lender.

                                        4
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01-11-2000                       DEED OF TRUST                            Page 5
                                  (Continued)

         Lender shall, upon satisfactory proof of such  expenditure,  pay or
         reimburse  Trustor from the proceeds for the reasonable  cost of repair
         or  restoration it Trustor is not in default under this Deed of Trust.
         Any proceeds  which have not been  disbursed within 180 days after
         their  receipt and which Lender has not committed to the repair or
         restoration of the Property shall be used first to pay any amount owing
         to Lender  under  this  Deed of  Trust,  then to pay accrued  interest,
         and the remainder,  if any, shall be applied to the principal  balance
         of the  Indebtedness.  If Lender  holds any proceeds after payment in
         full of the Indebtedness,  such proceeds shall be paid to Trustor as
         Trustor's interests may appear.

         Unexpired Insurance at Sale. Any unexpired insurance shall inure to the
         benefit of, and pass to, the purchaser of the Property  covered by this
         Deed of Trust  at any  trustee's  sale or other  sale  held  under  the
         provisions of this Deed of Trust,  or at any  foreclosure  sale of such
         Property.

         Compliance with Existing  Indebtedness.  During the period in which any
         Existing Indebtedness described below is in effect, compliance with the
         insurance  provisions  contained  in  the  instrument  evidencing  such
         Existing  Indebtedness  shall constitute  compliance with the insurance
         provisions under this Deed of Trust, to the extent  compliance with the
         terms of this Deed of Trust would constitute a duplication of insurance
         requirement. If any proceeds from the insurance become payable on loss,
         the  provisions  in this Deed of Trust for  division of proceeds  shall
         apply only to that portion of the proceeds not payable to the holder of
         the Existing Indebtedness.

         Trustor's Report on Insurance. Upon request of Lender, however not more
         than  once a year,  Trustor  shall  furnish  to Lender a report on each
         existing policy of insurance showing:  (a) the name of the insurer; (b)
         the risks  insured;  (c) the  amount of the  policy;  (d) the  property
         insured,  the then current replacement value of such property,  and the
         manner of determining  that value;  and (e) the expiration  date of the
         policy.  Trustor  shall,  upon request of Lender,  have an  independent
         appraiser  satisfactory to Lender determine the cash value  replacement
         cost of the Property.

EXPENDITURES  BY LENDER.  If Trustor  fails to comply with any provision of this
Deed of Trust,  including any obligation to maintain  Existing  Indebtedness  in
good  standing as required  below,  or if any action or  proceeding is commenced
that would  materially  affect  Lender's  interests in the  Property,  Lender on
Trustor's  behalf may, but shall not be required to, take any action that Lender
deems appropriate. Any amount that Lender expends in so doing will bear interest
at the rate provided for in the Note from the date incurred or paid by Lender to
the date of repayment by Trustor.  All such expenses,  at Lender's option,  will
(a) be  payable  on  demand,  (b) be  added  to the  balance  of the Note and be
apportioned  among and be payable  with any  installment  payments to become due
during  either  (i) the  term of any  applicable  insurance  policy  or (ii) the
remaining term of the Note, or (c) be treated as a balloon payment which will be
due and  payable at the  Note's  maturity.  This Deed of Trust also will  secure
payment of these amounts.  The rights provided for in this paragraph shall be in
addition to any other  fights or any remedies to which Lender may be entitled on
account of the  default.  Any such action by Lender  shall not be  construed  as
curing the default so as to bar Lender from any remedy that it  otherwise  would
have had. Notwithstanding the foregoing,  Lender agrees to give Trustor 15 days
written  notice prior to incurring any such  expenditure  as described  above on
behalf of Trustor.

WARRANTY; DEFENSE OF TITLE. The following provisions relating to ownership of
the Property are a part of this Deed of Trust.

         Title.  Trustor  warrants  that:  (a) Trustor holds good and marketable
         tide of record to the  Property  in fee  simple,  free and clear of all
         liens and encumbrances  other than those set forth in the Real Property
         description  or in the Existing  Indebtedness  section  below or in any
         title insurance policy,  title report, or final title opinion issued in
         favor of,  and  accepted  by,  Lender in  connection  with this Deed of
         Trust,  and (b) Trustor has the full right,  power,  and  authority  to
         execute and deliver this Deed of Trust to Lender.

         Defense of Title.  Subject to the  exception  in the  paragraph  above,
         Trustor  warrants  and will  forever  defend the title to the  Property
         against the lawful  claims of all  persons.  In the event any action or
         proceeding is commenced that questions  Trustor's title or the interest
         of Trustee or Lender under this Deed of Trust, Trustor shall defend the
         action at Trustor's  expense.  Trustor may be the nominal party in such
         proceeding,  but  Lender  shall  be  entitled  to  participate  in  the
         proceeding  and to be  represented  in the  proceeding  by  counsel  of
         Lender's  own  choice,  and  Trustor  will  deliver,  or  cause  to  be
         delivered,  to Lender such  instruments as Lender may request from time
         to time to permit such participation.

         Compliance With Laws.  Trustor warrants that the Property and Trustor's
         use of  the  Property  complies  with  all  existing  applicable  laws,
         ordinances, and regulations of governmental authorities.

EXISTING INDEBTEDNESS. The following provisions concerning existing indebtedness
(the "Existing Indebtedness") are a part of this Deed of Trust.

                                        5
<PAGE>

01-11-2000                       DEED OF TRUST                            Page 6
                                  (Continued)

         Existing Lien. The lien of this Deed of Trust securing the Indebtedness
         may be secondary and inferior to an existing  lien.  Trustor  expressly
         covenants  and agrees to pay, or see to the  payment  of, the  Existing
         Indebtedness  and to  prevent  any  default on such  indebtedness,  any
         default under the  instruments  evidencing  such  indebtedness,  or any
         default under any security documents for such indebtedness.

         Default. If the payment of any installment of principal or any interest
         on the Existing  Indebtedness  is not made within the time  required by
         the note evidencing such indebtedness,  or should a default occur under
         the instrument  securing such  indebtedness and not be cured during any
         applicable  grace period  therein,  then, at the option of Lender,  the
         Indebtedness secured by this Deed of Trust shall become immediately due
         and payable, and this Deed of Trust shall be in default.

         No  Modification.  Trustor shall not enter into any agreement  with the
         holder of any  mortgage,  deed of trust,  or other  security  agreement
         which has priority  over this Deed of Trust by which that  agreement is
         modified,  amended,  extended,  or renewed  without  the prior  written
         consent of Lender.  Trustor shall neither request nor accept any future
         advances  under any such security  agreement  without the prior written
         consent of Lender.

CONDEMNATION.  The following provisions relating to condemnation proceedings are
a part of this Deed of Trust.

         Application  of Net  Proceeds.  If all or any part of the  Property  is
         condemned  by  eminent  domain  proceedings  or by  any  proceeding  or
         purchase in lieu of  condemnation,  Lender may at its election  require
         that all or any portion of the net  proceeds of the award be applied to
         the Indebtedness or the repair or restoration of the Property.  The net
         proceeds  of the  award  shall  mean the  award  after  payment  of all
         reasonable costs,  expenses, and attorneys' fees incurred by Trustee or
         Lender in connection with the condemnation.

         Proceedings.  If any proceeding in condemnation is filed, Trustor shall
         promptly notify Lender in writing, and Trustor shall promptly take such
         steps as may be  necessary  to defend  the action and obtain the award.
         Trustor may be the nominal party in such  proceeding,  but Lender shall
         be entitled to  participate  in the proceeding and to be represented in
         the  proceeding by counsel of its own choice,  and Trustor will deliver
         or cause to be delivered to Lender such instruments as may be requested
         by it from time to time to permit such participation.

IMPOSITION OF TAXES, FEES AND CHARGES BY GOVERNMENTAL AUTHORITIES. The following
provisions  relating to governmental  taxes, fees and charges are a part of this
Deed of Trust:

         Current Taxes, Fees and Charges. Upon request by Lender,  Trustor shall
         execute  such  documents  in  addition  to this  Deed of Trust and take
         whatever  other  action is  requested by Lender to perfect and continue
         Lender's lien on the Real Property.  Trustor shall reimburse Lender for
         all taxes, as described below,  together with all expenses  incurred in
         recording,  perfecting  or  continuing  this Deed of  Trust,  including
         without  limitation  all taxes,  fees,  documentary  stamps,  and other
         charges for recording or registering this Deed of Trust.

         Taxes.  The  following  shall  constitute  taxes to which this  section
         applies: (a) a specific tax upon this type of Deed of Trust or upon all
         or any part of the  Indebtedness  secured by this Deed of Trust;  (b) a
         specific  tax on Trustor  which  Trustor is  authorized  or required to
         deduct from payments on the  Indebtedness  secured by this type of Deed
         of Trust;  (c) a tax on this type of Deed of Trust  chargeable  against
         the Lender or the holder of the Note;  and (d) a specific tax on all or
         any  portion  of the  Indebtedness  or on  payments  of  principal  and
         interest made by Trustor.

         Subsequent  Taxes.  If any tax to which this section applies is enacted
         subsequent to the date of this Deed of Trust, this event shall have the
         same effect as an Event of Default (as defined  below),  and Lender may
         exercise any or all of its  available  remedies for an Event of Default
         as  provided  below  unless  Trustor  either (a) pays the tax before it
         becomes  delinquent,  or (b) contests the tax as provided  above in the
         Taxes and Liens  section and deposits  with Lender cash or a sufficient
         corporate surety bond or other security satisfactory to Lender.

SECURITY AGREEMENT; FINANCING STATEMENTS. The  following  provisions relating to
this Deed of Trust as a security agreement are a part of this Deed of Trust.

         Security  Agreement.   This  instrument  shall  constitute  a  security
         agreement  to the extent any of the  Property  constitutes  fixtures or
         other personal  property,  and Lender shall have all of the rights of a
         secured party under the Uniform Commercial Code as amended from time to
         time.

         Security Interest. Upon request by Lender, Trustor shall execute
         financing statements and take whatever other action is requested by
         Lender to perfect and continue Lender's security interest in the Rents
         and Personal Property.

                                        6
<PAGE>

01-11-2000                       DEED OF TRUST                            Page 7
                                  (Continued)

         In addition to recording this Deed of Trust in the real property
         records,  Lender may, at any  time and  without  further  authorization
         from  Trustor,  file executed counterparts, copies or reproductions of
         this Deed of Trust as a financing statement.  Trustor shall reimburse
         Lender for all expenses incurred in  perfecting  or continuing  this
         security interest. Upon default,  Trustor shall assemble the Personal
         Property in a manner and at a place reasonably  convenient  to  Trustor
         and Lender and make it available to Lender within three (3) days  after
         receipt of written demand from Lender.

         Addresses.  The  mailing  addresses  of  Trustor  (debtor)  and  Lender
         (secured  party),  from  which  information   concerning  the  security
         interest  granted  by this  Deed of  Trust  may be  obtained  (each  as
         required by the Uniform  Commercial  Code),  are as stated on the first
         page of this Deed of Trust.

FURTHER ASSURANCES; ATTORNEY-IN-FACT. The following provisions relating to
further assurances and attorney-in-fact are a part of this Deed of Trust.

         Further Assurances. At any time, and from time to time, upon request of
         Lender,  Trustor will make,  execute and  deliver,  or will cause to be
         made executed or delivered, to Lender or to Lender's designee, and when
         requested  by  Lender,  cause  to  be  filed,  recorded,   refiled,  or
         rerecorded,  as the case may be, at such times and in such  offices and
         places  as Lender  may deem  appropriate,  any and all such  mortgages,
         deeds  of  trust,  security  deeds,   security  agreements,   financing
         statements,  continuation statements, instruments of further assurance,
         certificates,  and  other  documents  as may,  in the sole  opinion  of
         Lender,  be necessary or  desirable in order to  effectuate,  complete,
         perfect, continue, or preserve (a) the obligations of Trustor under the
         Note, this Deed of Trust, and the Related Documents,  and (b) the liens
         and security  interests  created by this Deed of Trust on the Property,
         whether now owned or hereafter  acquired by Trustor.  Unless prohibited
         by law or agreed to the  contrary by Lender in writing,  Trustor  shall
         reimburse Lender for all costs and expenses incurred in connection with
         the matters referred to in this paragraph

         Attorney-in-Fact.  If Trustor fails to do any of the things referred to
         in the  preceding  paragraph,  Lender  may do so for and in the name of
         Trustor and at Trustor's  expense.  For such  purposes,  Trustor hereby
         irrevocably  appoints  Lender  as  Trustor's  attorney-in-fact  for the
         purpose of making, executing,  delivering, filing, recording, and doing
         all other  things as may be  necessary  or  desirable,  in Lender' sole
         opinion,  to  accomplish  the  matters  referred  to in  the  preceding
         paragraph.  Lender  agrees to provide 15 days written  notice prior to
         taking  any  action  on  behalf  of  Trustor  under  the  terms of this
         section.

FULL PERFORMANCE.  If Trustor pays all the Indebtedness when due, terminates the
line of credit, and otherwise performs all the obligations  imposed upon Trustor
under this Deed of Trust,  Lender shall execute and deliver to Trustee a request
for full  reconveyance  and  shall  execute  and  deliver  to  Trustor  suitable
statements of termination of any financing statement on file evidencing Lender's
security interest in the Rents and the Personal  Property.  Any reconveyance fee
required by law shall be paid by Trustor, if permitted by applicable law.

DEFAULT. Each of the following, at the option of Lender, shall constitute an
event of default ('Event of Default") under this Deed of Trust:

         Default on Indebtedness.  Failure  of  Trustor to make any payment when
         due on the Indebtedness.

         Default on Other Payments.  Failure of Trustor within the time required
         by this Deed of Trust to make any  payment for taxes or  insurance,  or
         any other payment necessary to prevent filing of or to effect discharge
         of any lien.

         Compliance  Default.  Failure of Trustor to comply with any other term,
         obligation,  covenant or condition contained in this Deed of Trust, the
         Note or in any of the Related Documents.

         False  Statements.  Any warranty,  representation  or statement made or
         furnished  to  Lender by or on behalf  of  Trustor  under  this Deed of
         Trust, the Note or the Related  Documents is false or misleading in any
         material respect, either now or at the time made or furnished.

         Defective  Collateralization.  This Deed of Trust or any of the Related
         Documents ceases to be in full force and effect  (including  failure of
         any  collateral  documents  to  create a valid and  perfected  security
         interest or lien) at any time and for any reason.

         Insolvency.  The dissolution or termination of Trustor's existence as a
         going  business,  the  insolvency  of  Trustor,  the  appointment  of a
         receiver for any part of Trustor's  property,  any  assignment  for the
         benefit of creditors, any " of creditor workout, or the commencement of
         any proceeding  under any  bankruptcy or insolvency  laws by or against
         Trustor.

                                        7
<PAGE>

01-11-2000                       DEED OF TRUST                            Page 8
                                  (Continued)

         Foreclosure, Forfeiture, etc. Commencement of foreclosure or forfeiture
         proceedings, whether by judicial proceeding, self-help, repossession or
         any other  method,  by any  creditor of Trustor or by any  governmental
         agency against any of the Property.  However, this subsection shall not
         apply  in the  event  of a good  faith  dispute  by  Trustor  as to the
         validity  or  reasonableness  of the  claim  which is the  basis of the
         foreclosure  or  forfeiture  proceeding,  provided  that Trustor  gives
         Lender written notice of such claim and furnishes  reserves or a surety
         bond for the claim satisfactory to Lender.

         Adverse Change. A material adverse change occurs in Trustor's financial
         condition, or Lender believes the prospect of payment or performance of
         the Indebtedness is impaired.

         Insecurity. Lender in good faith deems Itself insecure.

         Existing  Indebtedness.  A  default  shall  occur  under  any  Existing
         Indebtedness  or under any  instrument  on the  Property  securing  any
         Existing  Indebtedness,  or commencement of any suit or other action to
         foreclose any existing lien on the Property.

         Right to Cure. If such a failure is curable and if Trustor has not been
         given a notice of a breach of the same  provision of this Deed of Trust
         within the preceding twelve (12) months,  it may be cured (and no Event
         of Default will have  occurred) if Trustor,  after Lender sends written
         notice  demanding  cure of such failure:  (a) cures the failure  within
         fifteen (15) days;  or (b) if the cure  requires more than fifteen (15)
         days,  immediately  initiates steps  sufficient to cure the failure and
         thereafter  continues and completes all reasonable and necessary  steps
         sufficient to produce compliance as soon as reasonably practical.

RIGHTS AND REMEDIES ON DEFAULT.  Upon the occurrence of any Event of Default and
at any time thereafter,  Trustee or Lender, at its option,  may exercise any one
or more of the following rights and remedies, in addition to any other rights or
remedies provided by law:

         Accelerate  Indebtedness.  Lender  shall  have the right at its  option
         without   notice  to  Trustor  to  declare   the  entire   Indebtedness
         immediately  due and payable,  including any  prepayment  penalty which
         Trustor would be required to pay.

         Foreclosure.  With respect to all or any part of the Real Property, the
         Trustee  shall  have the right to  foreclose  by notice  and sale,  and
         Lender shall have the right to foreclose  by judicial  foreclosure,  in
         either  case in  accordance  with and to the full  extent  provided  by
         applicable law.

         UCC Remedies. With respect to all or any part of the Personal Property,
         Lender shall have all the rights and remedies of a secured  party under
         the Uniform Commercial Code.

         Collect Rents. Lender shall have the right,  without notice to Trustor,
         to take  possession  of and manage the  Property and collect the Rents,
         including amounts past due and unpaid, and apply the net proceeds, over
         and above Lender's costs,  against the Indebtedness.  In furtherance of
         this right, Lender may require any tenant or other user of the Property
         to make payments of rent or use fees  directly to Lender.  If the Rents
         are collected by Lender, then Trustor irrevocably  designates Lender as
         Trustor's  attorney-in-fact to endorse instruments  received in payment
         thereof in the name of Trustor  and to  negotiate  the same and collect
         the proceeds.  Payments by tenants or other users to Lender in response
         to Lender's demand shall satisfy the obligations for which the payments
         are made,  whether or not any proper  grounds  for the demand  existed.
         Lender may  exercise  its  rights  under  this  subparagraph  either in
         person, by agent, or through a receiver.

         Appoint  Receiver.  Lender  shall  have the  right  to have a  receiver
         appointed to take  possession of all or any part of the Property,  with
         the power to protect and preserve the Property, to operate the Property
         preceding  foreclosure  or sale,  and to  collect  the  Rents  from the
         Property  and  apply  the  proceeds,  over  and  above  the cost of the
         receivership,  against  the  Indebtedness.  Trustor  hereby  waives any
         requirement that the receiver be Impartial and  disinterested as to all
         of the  parties  and  agrees  that  employment  by  Lender  shall  riot
         disqualify a person from serving as a receiver.

                                        8
<PAGE>

01-11-2000                       DEED OF TRUST                            Page 9
                                  (Continued)

         Tenancy at Sufferance. If Trustor remains in possession of the Property
         after  the  Property  is sold as  provided  above or  Lender  otherwise
         becomes entitled to possession of the Property upon default of Trustor,
         Trustor  shall become a tenant at sufferance of Lender or the purchaser
         of the  Property  and  shall,  at  Lender's  option,  either  (a) pay a
         reasonable  rental  for  the use of the  Property,  or (b)  vacate  the
         Property immediately upon the demand of Lender.

         Other Remedies. Trustee or Lender shall have any other right or remedy
         provided in this Deed of Trust or the Note or by law.

         Notice of Sale. Lender shall give Trustor reasonable notice of the time
         and place of any public  sale of the  Personal  Property or of the time
         after  which any  private  sale or other  intended  disposition  of the
         Personal  Property is to be made.  Reasonable  notice shall mean notice
         given  at  least  ten  (10)  days  before  the  time  of  the  sale  or
         disposition.  Any sale of Personal  Property may be made in conjunction
         with any sale of the Real Property.

         Sale of the  Property.  To the  extent  permitted  by  applicable  law,
         Trustor  hereby  waives  any  and  all  rights  to  have  the  Property
         marshaled. In exercising its rights and remedies, the Trustee or Lender
         shall  be free to sell  all or any  part of the  Property  together  or
         separately,  in one sale or by separate sales. Lender shall be entitled
         to bid at any public sale on all or any portion of the Property.

         Waiver;  Election of  Remedies.  A waiver by any party of a breach of a
         provision  of this Deed of Trust  shall not  constitute  a waiver of or
         prejudice the party's rights otherwise to demand strict compliance with
         that provision or any other provision. Election by Lender to pursue any
         remedy  provided  in this  Deed of  Trust,  the  Note,  in any  Related
         Document,  or provided  by law shall not  exclude  pursuit of any other
         remedy,  and an  election  to make  expenditures  or to take  action to
         perform an obligation of Trustor under this Deed of Trust after failure
         of  Trustor to perform  shall not  affect  Lender's  right to declare a
         default and to exercise any of its remedies.

         Attorneys' Fees;  Expenses.  If Lender institutes any suit or action to
         enforce  any of the  terms  of this  Deed of  Trust,  Lender  shall  be
         entitled  to recover  such sum as the court may adjudge  reasonable  as
         attorneys'  fees at trial and on any  appeal.  Whether or not any court
         action is involved, all reasonable expenses incurred by Lender which in
         Lender's  opinion are  necessary at any time for the  protection of its
         interest or the  enforcement  of its rights  shall become a part of the
         Indebtedness payable on demand and shall bear interest at the Note rate
         from the date of  expenditure  until repaid.  Expenses  covered by this
         paragraph include,  without  limitation,  however subject to any limits
         under applicable law,  Lender's  reasonable  attorneys' fees whether or
         not  there  is a  lawsuit,  including  reasonable  attorneys'  fees for
         bankruptcy  proceedings  (including  efforts  to modify  or vacate  any
         automatic   stay  or   injunction),   appeals   and   any   anticipated
         post-judgment  collection  services,  the  cost of  searching  records,
         obtaining title reports  (including  foreclosure  reports),  surveyors'
         reports,  appraisal fees, title insurance, and fees for the Trustee, to
         the extent permitted by applicable law. Trustor also will pay any court
         costs, in addition to all other sums provided by law.

         Rights of Trustee. Trustee shall have all of the rights and duties of
         Lender as set forth in this section.

POWERS AND OBLIGATIONS OF TRUSTEE. The following provisions relating to the
powers and obligations of Trustee are part of this Deed of Trust.

         Powers of Trustee.  In  addition to all powers of Trustee  arising as a
         matter  of law,  Trustee  shall  have the  power to take the  following
         actions with respect to the Property upon the written request of Lender
         and Trustor: (a) join in preparing and filing a map or plat of the Real
         Property,  including  the  dedication of streets or other rights to the
         public;  (b) join in granting any easement or creating any  restriction
         on the  Real  Property;  and (c)  join in any  subordination  or  other
         agreement  affecting this Deed of Trust or the interest of Lender under
         this Deed of Trust.

         Obligations  to Notify.  Trustee  shall not be  obligated to notify any
         other party of a pending sale under any other trust deed or lien, or of
         any action or proceeding in which Trustor,  Lender, or Trustee shall be
         a party, unless the action or proceeding is brought by Trustee.

         Trustee.  Trustee  shall meet all  qualifications  required for Trustee
         under  applicable law. In addition to the rights and remedies set forth
         above,  with  respect to all or any part of the  Property,  the Trustee
         shall have the right to foreclose by notice and sale,  and Lender shall
         have the right to foreclose by judicial foreclosure,  in either case in
         accordance with and to the full extent provided by applicable law.

         Successor Trustee. Lender, at Lender's option, may from time to time
         appoint a successor Trustee to any Trustee appointed hereunder by an
         instrument executed and acknowledged by Lender and recorded in the
         office of the recorder of SALT

                                        9
<PAGE>

01-11-2000                       DEED OF TRUST                           Page 10
                                  (Continued)

         LAKE County,  Utah.  The instrument  shall contain,  in addition to all
         other matters  required by state law, the names of the original Lender,
         Trustee,  and  Trustor,  the book and page  where this Deed of Trust is
         recorded,  and the name and address of the successor  trustee,  and the
         instrument  shall  be  executed  and  acknowledged  by  Lender  or  its
         successors in interest.  The successor  trustee,  without conveyance of
         the  Property,  shall  succeed  to all the  title,  power,  and  duties
         conferred upon the Trustee in this Deed of Trust and by applicable law.
         This  procedure  for  substitution  of  trustee  shall  govern  to  the
         exclusion of all other provisions for substitution.

NOTICES TO TRUSTOR AND OTHER PARTIES. Unless otherwise provided by applicable
law, any notice under this Deed of Trust or  required  by law  shall be in
writing,  may be sent by  telefacsimile (unless  otherwise  required  by law),
and  shall be  effective  when  actually delivered  in  accordance  with the law
or with  this  Deed of  Trust,,  or when deposited with a nationally  recognized
overnight courier, or, if mailed, shall be deemed  effective  when deposited  in
the United  States  mail first  class, certified or registered mail,  postage
prepaid,  directed to the addresses shown near the  beginning of this Deed of
Trust.  Any party may change its address for notices under this Deed of Trust by
giving formal  written  notice to the other parties,  specifying  that the
purpose of the  notice is to change the  party's address.  All copies of notices
of foreclosure from the holder of any lien which has priority over this Deed of
Trust shall be sent to Lenders address,  as shown near the beginning of this
Deed of Trust. For notice purposes, Trustor agrees to keep Lender and  Trustee
informed at all times of  Trustor's current address.  Notwithstanding  any other
provisions of this Deed of Trust, all notices given under Utah Code Ann. Section
57-1-26 shall be given as required therein.

MISCELLANEOUS PROVISIONS. The following miscellaneous provisions are a part of
this Deed of Trust:
Amendments. This Deed of Trust, together with any Related Documents, constitutes
the entire  understanding  and  agreement  of the  parties as to the matters set
forth in this Deed of Trust. No alteration of or amendment to this Deed of Trust
shall be  effective  unless  given in writing and signed by the party or parties
sought to be charged or bound by the alteration or amendment. Annual Reports. If
the Property is used for purposes other than Trustor's residence,  Trustor shall
furnish to Lender,  upon request, a certified  statement of net operating income
received from the Property  during  Trustor's  previous fiscal year in such form
and detail as Lender shall require.  "Net operating  income" shall mean all cash
receipts from the Property less all cash  expenditures  made in connection  with
the operation of the Property.

ARBITRATION DISCLOSURES:

  1.     ARBITRATION IS FINAL AND BINDING ON THE PARTIES AND SUBJECT TO ONLY
         VERY LIMITED REVIEW BY A COURT.

  2.     IN ARBITRATION THE PARTIES ARE WAIVING THEIR RIGHT TO LITIGATE IN
         COURT, INCLUDING THEIR RIGHT TO A JURY TRIAL.

  3.     DISCOVERY IN ARBITRATION IS MORE LIMITED THAN DISCOVERY IN COURT.

  4.     ARBITRATORS ARE NOT REQUIRED TO INCLUDE FACTUAL FINDINGS OR LEGAL
         REASONING IN THEIR AWARDS. THE RIGHT TO APPEAL OR TO SEEK MODIFICATION
         OF ARBITRATORS' RULINGS IS VERY LIMITED.

  5.     A PANEL OF ARBITRATORS MIGHT INCLUDE AN ARBITRATOR WHO IS OR WAS
         AFFILIATED WITH THE BANKING INDUSTRY.

  6.     IF YOU HAVE QUESTIONS ABOUT ARBITRATION, CONSULT YOUR ATTORNEY OR THE
         AMERICAN ARBITRATION ASSOCIATION.

         (a) Any claim or controversy  ("Dispute")  between or among the parties
         and their assigns, including but not limited to Disputes arising out of
         or relating to this agreement, this arbitration provision ("arbitration
         clause"),  or any related agreements or instruments  relating hereto or
         delivered in connection herewith ('Related  Documents"),  and including
         but not limited to a Dispute  based on or arising from an alleged tort,
         shall at the request of any party be resolved by binding arbitration in
         accordance  with  the  applicable  arbitration  rules  of the  American
         Arbitration  Association (the "Administrator").  The provisions of this
         arbitration  clause  shall  survive  any  termination,   amendment,  or
         expiration of this  agreement or Related  Documents.  The provisions of
         this arbitration clause shall supersede any prior arbitration agreement
         between or among the  parties.  If any  provision  of this  arbitration
         clause should be determined to be  unenforceable,  all other provisions
         of this arbitration clause shall remain in full force and effect.

         (b) The arbitration  proceedings  shall be conducted in Salt Lake City,
Utah, at a place to be determined by the Administrator.

                                       10
<PAGE>

01-11-2000                       DEED OF TRUST                           Page 11
                                  (Continued)

         The Administrator and the arbitrator(s) shall have the authority to the
         extent  practicable  to take any  action  to  require  the  arbitration
         proceeding to be completed and the  arbitrator(s)'  award issued within
         one  hundred  fifty  (150) days of the filing of the  Dispute  with the
         Administrator.  The  arbitrator(s)  shall have the  authority to impose
         sanctions on any party that fails to comply with time  periods  imposed
         by the  Administrator or the  arbitrator(s),  including the sanction of
         summarily  dismissing  any  Dispute  or  defense  with  prejudice.  The
         arbitrator(s) shall have the authority to resolve any Dispute regarding
         the  terms  of this  agreement,  this  arbitration  clause  or  Related
         Documents,   including   any  claim  or   controversy   regarding   the
         arbitrability of any Dispute. All limitations periods applicable to any
         Dispute or defense, whether by statute or agreement, shall apply to any
         arbitration  proceeding  hereunder and the arbitrator(s) shall have the
         authority  to decide  whether  any  Dispute  or  defense is barred by a
         limitations  period and, if so, to summarily enter an award  dismissing
         any  Dispute or defense on that  basis.  The  doctrines  of  compulsory
         counterclaim,  res judicata, and collateral estoppel shall apply to any
         arbitration  proceeding  hereunder  so that a  party  must  state  as a
         counterclaim  in the  arbitration  proceeding  any claim or controversy
         which arises out of the  transaction or occurrence  that is the subject
         matter of the  Dispute.  The  arbitrator(s)  may in the  arbitrator(s)'
         discretion and at the request of any party: (1) consolidate in a single
         arbitration proceeding any other claim or controversy involving another
         party that is  substantially  related to the  Dispute  where that other
         party is bound  by an  arbitration  clause  with  the  Lender,  such as
         borrowers,   guarantors,   sureties,  and  owners  of  collateral;  (2)
         consolidate  in a single  arbitration  proceeding  any  other  claim or
         controversy  that is  substantially  similar  to the  Dispute;  and (3)
         administer  multiple  arbitration  claims  or  controversies  as  class
         actions in  accordance  with the  provisions  of Rule 23 of the Federal
         Rules of Civil Procedure.

         (c) The arbitrator(s) shall be selected in accordance with the rules of
         the Administrator from panels maintained by the Administrator. A single
         arbitrator  shall have  expertise in the subject matter of the Dispute.
         Where three arbitrators conduct an arbitration proceeding,  the Dispute
         shall be decided by a majority vote of the three arbitrators,  at least
         one of whom must have  expertise  in the subject  matter of the Dispute
         and  at  least  one  of  whom  must  be  a  practicing  attorney.   The
         arbitrator(s) shall award to the prevailing party recovery of all costs
         and   fees   (including   attorneys'   fees  and   costs,   arbitration
         administration   fees  and  costs,   and   arbitrator(s)'   fees).  The
         arbitrator(s), either during the pendency of the arbitration proceeding
         or as part of the  arbitration  award,  also may grant  provisional  or
         ancillary remedies, including but not limited to an award of injunctive
         relief, foreclosure, sequestration,  attachment, replevin, garnishment,
         or the appointment of a receiver.

         (d)  Judgment  upon an  arbitration  award may be  entered in any court
         having  jurisdiction,   subject  to  the  following   limitation:   the
         arbitration  award is binding  upon the parties only if the amount does
         not exceed Four Million Dollars  ($4,000,000.00);  if the award exceeds
         that limit,  either party may demand the right to a court trial. Such a
         demand  must be filed with the  Administrator  within  thirty (30) days
         following the date of the  arbitration  award;  if such a demand is not
         made within that time period, the amount of the arbitration award shall
         be binding. The computation of the total amount of an arbitration award
         shall  include   amounts   awarded  for  attorneys'   fees  and  costs,
         arbitration administration fees and costs, and arbitrator(s)' fees.

         (e) No provision of this  arbitration  clause,  nor the exercise of any
         rights hereunder, shall limit the right of any party to: (1) judicially
         or  non-judicially  foreclose  against  any real or  personal  property
         collateral  or  other  security;   (2)  exercise  self-help   remedies,
         including but riot limited to  repossession  and setoff rights;  or (3)
         obtain from a court having  jurisdiction  thereover any  provisional or
         ancillary  remedies,  including but riot limited to injunctive  relief,
         foreclosure,  sequestration,  attachment, replevin, garnishment, or the
         appointment  of a receiver.  Such rights can be  exercised at any time,
         before or during initiation of an arbitration proceeding, except to the
         extent such action is contrary to the arbitration  award.  The exercise
         of such rights shall not constitute a waiver of the right to submit any
         Dispute to  arbitration,  and any claim or  controversy  related to the
         exercise  of such rights  shall be a Dispute to be  resolved  under the
         provisions  of  this  arbitration   clause.   Any  party  may  initiate
         arbitration  with the  Administrator;  however,  if any party initiates
         litigation   and  another  party   disputes  any   allegation  in  that
         litigation,  the disputing  party--upon  the request of the  initiating
         party--must  file a demand for arbitration with the  Administrator  and
         pay the  Administrator's  filing  fee.  The parties may serve by mail a
         notice of an initial motion for an order of arbitration.

         (f)  Notwithstanding  the  applicability  of  any  other  law  to  this
         agreement,  the arbitration  clause,  or Related  Documents  between or
         among the parties,  the Federal Arbitration Act, 9 U.S.C.  Section 1 et
         seq.,  shall  apply  to the  construction  and  interpretation  of this
         arbitration clause.

Applicable  Law. This Deed of Trust has been delivered to Lender and accepted by
Lender In the State of Utah. Subject to the provisions on arbitration, this Deed
of Trust shall be governed by and construed In  accordance  with the laws of the
State of Utah.

Caption Headings. Caption headings in this Deed of Trust are for convenience
purposes only and are not to be used to interpret or define the provisions of
this Deed of Trust.

Merger. There shall be no merger of the interest or estate created by this Deed
of Trust with any other interest or estate in the Property  at any time held by
or for the  benefit  of  Lender  in any  capacity, without the written consent
of Lender.

                                       11
<PAGE>

01-11-2000                       DEED OF TRUST                           Page 12
                                  (Continued)

Multiple  Parties;  Corporate  Authority.  All obligations of Trustor under this
Deed of Trust shall be joint and several,  and all  references  to Trustor shall
mean each and every Trustor.  This means that each of the persons  signing below
is responsible for all obligations in this Deed of Trust.

Severability.  If a court of competent  jurisdiction finds any provision of this
Deed of Trust to be invalid or  unenforceable  as to any person or circumstance,
such finding shall not render that provision  invalid or unenforceable as to any
other persons or circumstances.  If feasible, any such offending provision shall
be deemed to be modified to be within the limits of  enforceability or validity;
however, if the offending provision cannot be so modified,  it shall be stricken
and all  other  provisions  of this Deed of Trust in all  other  respects  shall
remain valid and enforceable.

Successors and Assigns.  Subject to the limitations stated in this Deed of Trust
on transfer of Trustor's interest,  this Deed of Trust shall be binding upon and
inure to the benefit of the parties,  their successors and assigns. If ownership
of the Property becomes vested in a person other than Trustor,  Lender,  without
notice to Trustor,  may deal with  Trustor's  successors  with reference to this
Deed of Trust and the  Indebtedness  by way of forbearance or extension  without
releasing  Trustor from the obligations of this Deed of Trust or liability under
the Indebtedness.

Time Is of the Essence. Time is of the essence in the performance of this Deed
of Trust.

Waivers and Consents. Lender shall not be deemed to have waived any rights under
this Deed of Trust (or under the  Related  Documents)  unless  such waiver is in
writing  and signed by  Lender.  No delay or  omission  on the part of Lender in
exercising any right shall operate as a waiver of such right or any other right.
A waiver by any party of a provision of this Deed of Trust shall not  constitute
a waiver of or prejudice the party's right otherwise to demand strict compliance
with that provision or any other provision.  No prior waiver by Lender,  nor any
course of dealing between Lender and Trustor,  shall  constitute a waiver of any
of  Lender's   rights  or  any  of  Trustor's   obligations  as  to  any  future
transactions.  Whenever consent by Lender is required in this Deed of Trust, the
granting  of such  consent  by  Lender  in any  instance  shall  not  constitute
continuing consent to subsequent instances where such consent is required.

         Waiver of Homestead  Exemption.  Trustor hereby releases and waives all
         rights and  benefits of the  homestead  exemption  laws of the State of
         Utah as to all Indebtedness secured by this Deed of Trust.

EACH TRUSTOR  ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS DEED OF TRUST,
AND EACH TRUSTOR AGREES TO ITS TERMS.

TRUSTOR:

DYNATRONICS CORPORATION

By:  /s/ KELVYN H. CULLIMORE JR.
    --------------------------------------
         KELVYN H. CULLIMORE JR., PRESIDENT

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

                            CORPORATE ACKNOWLEDGMENT

STATE OF            UTAH                           )
        -------------------------------------------
                                                   ) ss   [Notary Seal]
COUNTY OF         SALT LAKE                        )
         ------------------------------------------

On this 17 day of January, 2000 , before me, the undersigned Notary Public,
personally appeared KELVYN H. CULLIMORE,  JR., PRESIDENT of DYNATRONICS
CORPORATION,  and known to me to be an authorized agent of the corporation that
executed the, Deed of Trust and acknowledged the Deed of Trust to be the free
and voluntary act and deed of the  corporation,  by  authority of its Bylaws or
by  resolution  of its board of directors,  for the uses and purposes  therein
mentioned,  and on oath stated  that he or she is  authorized  to execute  this
Deed of Trust and in fact executed the Deed of Trust on behalf of the
corporation.

                                       12
<PAGE>

01-11-2000                       DEED OF TRUST                           Page 13
                                  (Continued)

By      Shelley Plant                   Residing at   Salt Lake County
   ---------------------------------                ----------------------------
Notary Public In and for the State of  Utah     My commission expires  3/11/01
                                      ---------                       ----------

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

                          REQUEST FOR FULL RECONVEYANCE

            (To be used only when obligations have been paid in full)

To:                                                     , Trustee
    ---------------------------------------------------

The  undersigned  is the legal owner and holder of all  Indebtedness  secured by
this Deed of Trust.  All sums secured by this Deed of Trust have been fully paid
and satisfied. You are hereby directed, upon payment to you of any sums owing to
you under the terms of this Deed of Trust or pursuant to any applicable statute,
to cancel the Note  secured  by this Deed of Trust  (which is  delivered  to you
together with this Deed of Trust),  and to reconvey,  without  warranty,  to the
parties  designated  by the terms of this Deed of Trust,  the estate now held by
you under this Deed of Trust. Please mail the reconveyance and Related Documents
to:

-------------------------------------------------------------------------------.

Date:                                   Beneficiary:
     -------------------                            ----------------------------
                                                By:
                                                    ----------------------------
                                                Its:
                                                    ----------------------------

--------------------------------------------------------------------------------
LASER PRO, Reg. U.S. Pat. & T.M. Off.., Ver. 3.28 (c) 2000 CFI ProServices, Inc.
All rights reserved. [UT-G01 DYNAT.LN)

                                        13
<PAGE>

01-11-2000                 DEED OF TRUST                 Page 14
                            (Continued)

                                   SCHEDULE A

                                   DESCRIPTION

A part of the Northwest  quarter of Section 28 and Southwest  quarter of Section
21,  Township  2  South,  Range  I East,  Salt  Lake  Base  and  Meridian,  more
particularly described as follows:

         Beginning  at the  Northwest  corner of Section  28,  Township 2 South,
         Range 1East, Salt Lake Base and Meridian;  and running thence along the
         section  line North  00(degree)41'24"  West 151.50  feet;  thence North
         89(degree)18'36"  East 477.75 feet; thence South  04(degree)04'00" West
         192.22 feet; thence Southwesterly 555.51 feet along the arc of a 370.00
         foot radius curve to the right (chord bears South 47(degree)04'42" West
         504.79 feet;  thence  North  89(degree)54'37"  West 93.06 feet;  thence
         Northwesterly  0.15 feet along the arc of a 685.00 foot radius curve to
         the right (chord bears North  89(degree)54'15"  West 0.15 feet); thence
         along the Section line North  00(degree)05'23"  East 378.11 feet to the
         point of beginning,

         Excepting therefrom the following:

         A part of the Northwest quarter of Section 28 and the Southwest quarter
         of Section  21,  Township 2 South,  Range 1 East,  Salt Lake Base,  and
         Meridian, U.S. Survey:

         Beginning  at the  Northwest;  corner of Section 28,  Township 2 South,
         Range 1 East, Salt Lake Base and Meridian; and running thence along the
         Section  line North  0(degree)41'24"  West 151.50  feet;  thence  North
         89(degree)18'36"  East 477.75 feet; thence South  4(degree)04'00"  West
         192.22 feet; thence Southwesterly 20.56 feet: along the arc of a 370.00
         foot radius curve to the right (chord bears South  5(degree)39'30" West
         20.56 feet);  thence North  89(degree)52'24"  West 460.32 feet;  thence
         along the  Section  line  North  0(degree)5'23"  East 53.93 feet to the
         point of beginning.

         The above described property also known by the street address of:
         7030 South Park Center Drive, Salt Lake City, Utah 84121

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