Document:

Exhibit 10.4

DOCUMENT PREPARED BY AND
WHEN RECORDED RETURN TO
Glast, Phillips & Murray, P.C.
13355 Noel Road, Suite 2200
One Galleria Tower
Dallas, Texas  75240
Attn:  Donald O. Walsh

                       DEED OF TRUST, ASSIGNMENT OF RENTS
                             AND SECURITY AGREEMENT

DATE:            April 4, 2006
PARTIES:         Grantor/Trustor:             Mark Potter

                 Grantor/Trustor              408 Hall Street
                 Address:                     Conroe, Texas 77301

                 TRUSTEE:                     Donald O. Walsh

                 Trustee's                    Glast, Phillips & Murray, P.C.
                 Address:                     13355 Noel Road, Suite 2200
                                              One Galleria Tower
                                              Dallas, Texas  75240

                 BENEFICIARY:                 Klinger Advanced Aesthetics, Inc.

                 Beneficiary's                501 Merritt 7, 5th Floor
                 Address:                     Norwalk, CT 06851

             THIS INSTRUMENT CONTAINS INDEMNIFICATION PROVISIONS AND
         PROVISIONS LIMITING THE BENEFICIARY'S LIABILITY FOR NEGLIGENCE.

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                       DEED OF TRUST, ASSIGNMENT OF RENTS
                             AND SECURITY AGREEMENT

         THIS DEED OF TRUST,  ASSIGNMENT OF RENTS AND SECURITY  AGREEMENT  (this
"Deed of Trust") is  executed  effective  as of April 4,  2006,  by Mark  Potter
(hereinafter  referred to whether one or more as "Trustor" or "Grantor"),  whose
address for notice hereunder is 408 Hall Street,  Conroe, Texas 77301, to Donald
O. Walsh  ("Trustee"),  for the  benefit of Klinger  Advanced  Aesthetics,  Inc.
("Beneficiary"), whose address for notice hereunder is 501 Merritt 7, 5th Floor,
Norwork, Connecticut, Attention: Wade Haddad.

                                   DEFINITIONS

         As used herein, the following terms shall have the following meanings:

                  "Financial  Statements":  The balance sheets,  profit and loss
         statements,   reconciliations  of  capital  and  surplus,   changes  in
         financial  condition,  schedules of sources and  applications of funds,
         and other  financial  information  of  Grantor,  Guarantor  or Tenants,
         heretofore  furnished  to  Beneficiary  or required to be  furnished to
         Beneficiary  under  the terms of this Deed of Trust or any other of the
         Loan Documents from time to time, which statements shall be prepared in
         such  scope,  detail  and  form as shall be  reasonably  acceptable  to
         Beneficiary,  and  shall  be  certified  by such  parties,  and  annual
         unaudited balance sheets for the Guarantor.

                  "Governmental  Authority":  The  United  States,  the State of
         Texas,  the  County of  Montgomery,  the City of  Conroe,  or any other
         political  subdivision in which the Mortgaged Property is located,  and
         any other political subdivision,  agency, or instrumentality exercising
         jurisdiction over Grantor, the Mortgaged Property or the Improvements.

                   "Indebtedness":  The sum of all  principal,  interest and all
         other amounts evidenced by, due under or secured by the Loan Documents,
         together with all other  amounts  advanced to pay all or any portion of
         any  indebtedness  now or hereafter  secured by the Property,  it being
         contemplated that Grantor may become further indebted to Beneficiary in
         the future,  and that  Beneficiary may make further  advances to or for
         the benefit or account of Grantor  that will be secured by this Deed of
         Trust.

                  "Loan":  The Loan made to Grantor by  Beneficiary as evidenced
         and secured by the Loan Documents.

                  "Loan  Documents":  (a)  the  Promissory  Note  of  even  date
         herewith, executed by Grantor and Atlantis Laboratories,  Inc., a Texas
         corporation,  payable  to the  order  of  Beneficiary,  in  the  stated
         principal  amount  Three  Hundred  Ninety-Two  Thousand Two Hundred and
         No/100  Dollars  ($392,200.00),  (b) this Deed of Trust,  (c) all other
         documents now or hereafter executed by Grantor,  or any other person or
         entity,  to  evidence,  secure or  guaranty  the  payment of all or any
         portion of the Indebtedness or the

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         performance  of all or any  portion  of the  Obligations  or  otherwise
         executed in connection with the Note or this Deed of Trust, and (d) all
         modifications,  restatements,  extensions, renewals and replacements of
         the foregoing.

                  "Mortgaged Property":  (a) the real property more particularly
         described  in Exhibit A attached  hereto and by this  reference  made a
         part hereof,  together with any greater estate therein as hereafter may
         be acquired by Grantor (the "Land"), (b) all buildings,  structures and
         other improvements,  now or at any time situated, placed or constructed
         upon  the  Land  (the  "Improvements"),  (c) all  materials,  supplies,
         equipment,  apparatus and other items of personal property now owned or
         hereafter  acquired by Grantor which are now or hereafter  attached to,
         installed in or used in connection with any of the  Improvements or the
         Land, and water, gas,  electrical,  storm and sanitary sewer facilities
         and  all  other  utilities  on the  Land  whether  or not  situated  in
         easements  (the  "Fixtures"),  (d) all  right,  title and  interest  of
         Grantor  in  and  to  all   goods,   accounts,   general   intangibles,
         instruments,  documents,  chattel paper and all other personal property
         of any kind or character,  including such items of personal property as
         defined in the UCC, now owned or hereafter  acquired by Grantor and now
         or hereafter affixed to, placed upon, used in connection with,  arising
         from or otherwise  related to the Land and Improvements or which may be
         used  in  or  relating  to  the  planning,  development,  financing  or
         operation of the Mortgaged  Property,  including,  without  limitation,
         furniture,   furnishings,   equipment,   machinery,   money,  insurance
         proceeds,  accounts,  contract rights,  trademarks,  goodwill,  chattel
         paper,  documents,  trade names,  licenses and/or franchise agreements,
         rights of Grantor under leases of Fixtures or other  personal  property
         or equipment,  inventory,  all  refundable,  returnable or reimbursable
         fees,  deposits or other funds or evidences  of credit or  indebtedness
         deposited by or on behalf of Grantor with any governmental authorities,
         boards, corporations, providers of utility services, public or private,
         including  specifically,   but  without  limitation,   all  refundable,
         returnable or reimbursable tap fees, utility deposits,  commitment fees
         and development costs (the "Personalty"),  (e) all reserves, escrows or
         impounds  required  under this Deed of Trust and all  deposit  accounts
         maintained by Grantor with respect to the Mortgaged  Property,  (f) all
         plans,  specifications,  shop drawings and other technical descriptions
         prepared for  construction,  repair or alteration of the  Improvements,
         and all amendments  and  modifications  thereof (the "Plans"),  (g) all
         leases, subleases, licenses, concessions,  occupancy agreements, rental
         contracts,  or other  agreements  (written  or oral)  now or  hereafter
         existing  relating  to the use or  occupancy  of all or any part of the
         Mortgaged Property, together with all guarantees, letters of credit and
         other credit support,  modifications,  extensions and renewals  thereof
         (whether  before  or after  the  filing by or  against  Grantor  of any
         petition  of relief  under 11 U.S.C.  ss.  101 et seq.,  as same may be
         amended  from time to time (the  "Bankruptcy  Code"))  and all  related
         security and other deposits (the "Leases") and all of Grantor's  claims
         and rights (the "Bankruptcy  Claims") to the payment of damages arising
         from any rejection by a Tenant of any Lease under the Bankruptcy  Code,
         (h) all of the rents, revenues, issues, income, proceeds,  profits, and
         all other  payments  of any kind under the  Leases for using,  leasing,
         licensing,   possessing,   operating  from,  residing  in,  selling  or
         otherwise  enjoying  the  Mortgaged  Property  whether paid or accruing
         before or after the filing by or against  Grantor of any  petition  for
         relief  under  the  Bankruptcy  Code  (the  "Rents"),   (i)  all  other
         agreements,  such as

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         construction contracts,  architects' agreements,  engineers' contracts,
         utility  contracts,   maintenance   agreements,   property   management
         agreements, franchise agreements, service contracts, permits, licenses,
         certificates  and  entitlements in any way relating to the development,
         construction,  use,  occupancy,  operation,   maintenance,   enjoyment,
         acquisition  or  ownership of the  Mortgaged  Property  (the  "Property
         Agreements"),  (j) all rights,  privileges,  tenements,  hereditaments,
         rights-of-way,  easements, appendages and appurtenances appertaining to
         the foregoing, and all right, title and interest, if any, of Grantor in
         and to any streets, ways, alleys, strips or gores of land adjoining the
         Land  or  any  part  thereof,  (k)  all  accessions,  replacements  and
         substitutions  for any of the foregoing and all proceeds  thereof,  (1)
         all insurance  policies,  unearned  premiums therefor and proceeds from
         such  policies  covering  any of the above  property  now or  hereafter
         acquired by Grantor, (m) all mineral,  water, oil and gas rights now or
         hereafter  acquired  and  relating to all or any part of the  Mortgaged
         Property,  (n) all  trade  names,  trademarks,  service  marks,  logos,
         copyrights,   goodwill,   books  and  records  and  all  other  general
         intangibles relating to or used in connection with the operation of the
         Mortgaged Property;  and (o) all of Grantor's right, title and interest
         in and to any awards,  remunerations,  reimbursements,  settlements  or
         compensation   heretofore   made  or   hereafter  to  be  made  by  any
         governmental authority pertaining to the Land,  Improvements,  Fixtures
         or  Personalty.  As used in this  Deed of  Trust,  the term  "Mortgaged
         Property" shall mean all or, where the context permits or requires, any
         portion of the above or any interest therein.

                  "Obligations":  All of the agreements,  covenants, conditions,
         warranties,  representations and other obligations (other than to repay
         the Indebtedness)  made or undertaken by Grantor or any other person or
         entity to Beneficiary or others as set forth in the Loan Documents.

                  "Permitted  Encumbrances":  The outstanding liens,  easements,
         restrictions,  security  interests  and other  exceptions  to title set
         forth in the policy of title  insurance  insuring the lien of this Deed
         of Trust which is accepted by Beneficiary,  together with the liens and
         security  interests  in  favor  of  Beneficiary  created  by  the  Loan
         Documents, none of which, individually or in the aggregate,  materially
         interfere with the benefits of the security  intended to be provided by
         this Deed of Trust,  materially  and adversely  affect the value of the
         Mortgaged  Property,  impair  the use or  operations  of the  Mortgaged
         Property or impair Grantor's ability to pay its obligations in a timely
         manner.

                  "State":  The State of Texas.

                  "Tenants":  All tenants under the Leases, if any.

                  "UCC":  The  Uniform  Commercial  Code of the State or, if the
         creation,  perfection and  enforcement of any security  interest herein
         granted is governed by the laws of a state other than the State,  then,
         as to the matter in question,  the Uniform Commercial Code in effect in
         that state.

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                                      GRANT

         To secure the full and timely payment of the  Indebtedness and the full
 and timely  performance of the  Obligations,  Grantor hereby GRANTS,  BARGAINS,
 SELLS,  CONVEYS and ASSIGNS to Trustee (and with respect to any portions of the
 Mortgaged  Property that constitute  personal  property,  to  Beneficiary)  the
 Mortgaged Property subject, however, to the Permitted Encumbrances; TO HAVE AND
 TO HOLD the Mortgaged  Property to Trustee,  IN TRUST,  WITH POWER OF SALE, and
 Grantor  does hereby bind  itself,  its  successors  and assigns to WARRANT AND
 FOREVER DEFEND the title to the Mortgaged Property unto Trustee and Beneficiary
 and their respective successors, substitutes and assigns.

         Grantor  covenants  with and  represents  and  warrants  to Trustee and
Beneficiary as follows:

         1. PAYMENTS BY GRANTOR.  Grantor shall make the following payments: (a)
all  amounts  required  to be paid by Grantor  pursuant to the Note and the Loan
Documents;  (b) before  delinquent,  all taxes and  assessments of every type or
nature  affecting  the Trust  Property,  all rents or charges  for  electricity,
power,  gas, water and other services and utilities,  and all assessments on any
water stock; (c) all other adverse claims, liens, charges and encumbrances which
now are or shall hereafter be or appear to be a lien on the Trust Property prior
to the lien of this Deed of Trust;  (d) all taxes upon this Deed of Trust or the
interest  of  Beneficiary  herein,  or upon  the  Note or debt  secured  hereby;
provided,  however,  that, if Texas law specifies a maximum lawful contract rate
of  interest,  the total  amount  so paid for any such  taxes  pursuant  to this
subparagraph 1(d) together with the interest payable on said indebtedness shall,
as provided in the Note, not exceed the highest lawful contract rate of interest
applicable  under Texas law. If any law  imposing  payment of all or any of such
taxes upon  Beneficiary  is enacted  and such  taxes  cannot  legally be paid by
Grantor or upon the rendering by any court of a decision that the undertaking by
Grantor,  as herein  provided,  to pay any tax or taxes is legally  inoperative,
then and in any such  event the debt  hereby  secured,  without  any  deduction,
shall,  at the option of  Beneficiary  which  shall be  exercisable  in its sole
discretion,  become  immediately due and collectible,  notwithstanding  anything
contained herein or any law heretofore or hereafter enacted.

         2.  INSURANCE.  Grantor  shall provide and maintain at its own expense,
for the benefit of  Beneficiary,  the following  insurance on the Trust Property
and all  improvements,  fixtures  and  equipment  comprising  part of the  Trust
Property:

                  (a)  Insurance  against fire and all hazards  contemplated  by
         extended  overage,  special  extended perils (or other "all-risk" form)
         and against vandalism,  malicious mischief and violence in companies or
         associations of companies approved by Beneficiary and on forms approved
         by  Beneficiary  in the amount of full  replacement  value (as same may
         increase  from time to time  hereafter  and  without  taking  any prior
         depreciation  into  account) of the on-site and  off-site  improvements
         (including  but not limited to structure  boiler,  machinery,  heating,
         ventilating and air conditioning equipment and plate glass)

                  (b) Public liability  insurance  against claims of any and all
         persons,  firms and corporations for personal injury, death or property
         damage  occurring  in or about  the Trust

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         Property or in or about the adjoining  streets,  sidewalks and setbacks
         Such insurance shall afford  protection in the combined single limit of
         Two  Million  Dollars  ($2 000,000 00) in respect to injury or death to
         one or more  persons,  and to the  limit of not less  than One  Hundred
         Thousand Dollars ($100,000 00) in respect to property damage

                  (c) Flood  insurance  in such  amounts  as may  reasonably  be
         requested by Beneficiary from time to time if the Trust Property is now
         or hereinafter  situated in an area designated by the Federal Insurance
         Administration as a special flood hazard area.

                  (d)  During  the  period  of any  construction  on  the  Trust
         Property  or  renovation  or  alteration  of any  improvements  located
         thereon, a so-called  "Builder's All-Risk Completed Value or "Course of
         Construction"   insurance   policy  in   non-reporting   form  for  any
         improvements under  construction,  renovation or alteration  including,
         without  limitation,  for demolition and increased cost of construction
         or  renovation,  in an amount  approved by  Beneficiary,  and  worker's
         compensation   insurance   covering   all   persons   engaged  in  such
         construction,  renovation  or alteration in an amount at least equal to
         the minimum required bylaw.

         Grantor  also agrees,  when  requested  by  Beneficiary  to provide and
maintain  policies  of  insurance  against any other risk as may  reasonably  be
designated by Beneficiary,  all in such amounts as may be reasonably required by
Beneficiary.  All  policies  provided  for in this  paragraph  2  shall  be with
companies or associations of companies approved by Beneficiary shall be on forms
and in the amount  approved by  Beneficiary,  shall contain  standard trust deed
beneficiary  clauses  endorsed  thereon making losses payable to Beneficiary and
shall  otherwise be in form and substance  satisfactory  to  Beneficiary  in its
reasonable  discretion.  Grantor  shall not permit any  condition  to exist that
would wholly or partially invalidate any such insurance Grantor shall assign and
deliver any and all  policies  of  insurance  to  Beneficiary  or shall  provide
Beneficiary  with  certificates  of  such  insurance   coverage  that  shall  be
irrevocable  without thirty (30) days' prior written  notice by registered  mail
having  been  given to  beneficiary  and shall not be  subject  to  modification
without  Beneficiary's prior written approval.  At least twenty (20) days before
expiration  of such  policies,  Grantor shall  deliver to  Beneficiary  renewals
thereof or renewal  certificates  therefor,  premiums paid. No approval required
under this Section 2 shall be unreasonably withheld.

3.  CASUALTY  LOSS. In the event of loss to any of the Trust  Property,  Grantor
shall give prompt notice to Beneficiary  and  Beneficiary may make proof of loss
if not made  promptly by Grantor.  Each  insurance  company  concerned is hereby
authorized  and directed to make payment for such loss  directly to  Beneficiary
instead of to Grantor or to Grantor and  Beneficiary  jointly and such insurance
proceeds  or any  part  thereof  may  be  applied  by  Beneficiary  in its  sole
discretion to the payment of interest due on the  indebtedness  secured  hereby,
the reduction of the principal amount of said indebtedness (in the inverse order
of  maturity)  the  payment  of  any  other  obligation  hereby  secured  or the
restoration or repair of the Trust Property.  If Beneficiary  elects to have the
Trust  Property  restored or repaired any insurance  proceeds on account of such
toss or damage,  less the costs if any, of  collecting  such  proceeds (the `Net
Insurance  Proceeds')  will be applied toward the  restoration and repair of the
Trust  Property  upon the terms  and  conditions  hereinafter  set forth in this
paragraph  3 and  in  accordance  with  plans  and  specifications  approved  by
Beneficiary.  The Net Insurance Proceeds received in connection with any loss or
damage shall be held by Beneficiary. If the Net Insurance Proceeds are placed in
an interest  bearing

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account  Grantor  shall be entitled to receive any interest  generated  from the
account,  which  interest shall be paid after  completion of the  restoration or
repairs Grantor,  with due diligence and at its expense,  shall prepare or cause
to be prepared by a licensed  architect all plans and  specifications  necessary
for  the  repair  and  restoration  of  the  Trust  Property  (which  plans  and
specifications  shall be subject to Beneficiary's  approval which approval shall
not be  unreasonably  withheld  as  long as the  plans  and  specifications  are
consistent with the original construction and concept for the development of the
Trust  Property)  and  shall  submit  the  same to  Beneficiary,  together  with
evidence, reasonably acceptable to Beneficiary,  selling forth the total cost of
such  improvements,  which shall be based upon one or more contracts proposed to
be entered into by Grantor with one or more reputable,  licensed and financially
responsible  contractors,  each in form and content acceptable to Beneficiary in
its  reasonable  discretion and each providing for the issuance of a performance
and labor and  material  payment bond in an amount equal to the cost of the work
provided  for  therein,  naming  the  contractor  as  principal  and issued by a
corporate surety acceptable to Beneficiary and naming  Beneficiary as an obligee
thereunder.  Grantor shall be reimbursed from the Net Insurance Proceeds for the
expense of preparation of all plans and specifications,  which Beneficiary shall
approve. If Beneficiary,  in its reasonable discretion,  deems the Net Insurance
Proceeds to be  insufficient  to complete  the work then,  prior to the start of
work  thereon,  Grantor shall  deposit with  Beneficiary  an amount equal to the
difference  between the Net Insurance  Proceeds  received by Beneficiary and the
total contract price for such repair and restoration.

         Grantor may then  commence  the work of repair and  restoration  of the
Trust  Property  and  disbursements  from such funds shall be made to or for the
account of Grantor  in  accordance  with a  disbursement  schedule,  as shall be
acceptable to Beneficiary,  and subject to other reasonable requirements,  terms
and  conditions.  Any Net  Insurance  Proceeds  remaining in such fund after the
completion  of such  work and the  payment  in full of all  costs  and  expenses
thereby incurred shall be disbursed by Beneficiary to Grantor; provided that the
repairs to and  restoration  of the Trust  Property  has been  completed  (i) to
Beneficiary's  reasonable  satisfaction,  (ii) in accordance  with the plans and
specifications  approved by Beneficiary,  and (iii) free of any liens claims and
charges  of any  kind and  nature,  and  provided  further  that all  applicable
governmental  approvals,  certificates,  etc.  have  been  obtained  by  Grantor
evidencing satisfactory  completion of the repairs and restoration.  Anything to
the contrary  notwithstanding,  Beneficiary's obligation to disburse moneys from
such fund  shall be  conditioned  upon there  being no uncured  Event of Default
existing hereunder or under any Loan Documents at the time any such disbursement
is to be made. If Grantor should fail to notify Beneficiary,  within thirty (30)
days immediately  following the occurrence of such loss or damage, of its desire
to use the Net  Insurance  Proceeds  for the purpose  specified  herein or if an
Event of Default  shall have  occurred and be  continuing or if Grantor fails to
provide  Beneficiary with acceptable plans and specifications for the repair and
restoration  of the Trust  Property  or fails to deposit  with  Beneficiary  the
difference  between the Net  Insurance  Proceeds and the cost of such repair and
restoration,  or if  Grantor  fails  to  fulfill  any  of the  other  conditions
specified herein,  within ninety (90) days immediately  following the receipt of
the Net Insurance Proceeds by Beneficiary,  then any and all amounts received by
Beneficiary  under any such policies of insurance may be applied by  Beneficiary
upon. the  indebtedness  secured hereby in such manner as Beneficiary may in its
sole discretion  elect (but not to the payment of any interest not yet accrued),
whether or not such amounts are then due or, in  Beneficiary's  sole discretion,
the entire  amount so received  or any part  thereof may be released to Grantor.
Beneficiary shall not be responsible for such insurance or for the collection

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of any  insurance  moneys or for the  insolvency of any insurer or any insurance
underwriter.  Application of insurance proceeds by Beneficiary shall not cure or
waive any default  hereunder or invalidate any act done hereunder because of any
such default. In the event of sale of the Trust Property under the power of sale
herein  granted to Trustee or foreclosure of this Deed of Trust as a mortgage or
if Beneficiary or a receiver appointed by the court shall take possession of the
Trust Properly without sale, all right,  title and interest of Grantor in and to
all transferable insurance policies then in force and any unearned premiums paid
thereon shall inure to the benefit of and pass to the Beneficiary in possession,
receiver  or  purchaser  at such sale,  as the case may be, and  Beneficiary  is
hereby  appointed  attorney-in-fact  for  Grantor  to assign and  transfer  said
policies.

         4.  MAINTENANCE  AND  INSPECTION.  Grantor  shall:  (a) keep the  Trust
Property in good condition and repair and not commit or permit waste thereof (b)
not remove,  demolish, alter or impair the design or structural character of any
building,   fixture,   equipment,  fence,  canal,  well  or  other  improvements
comprising  part of the Trust  Property;  (c) keep all buildings or improvements
comprising part of the Trust Property free of termites, dry rot, fungus, and alt
harmful or destructive  insects;  (d) keep all plants,  trees,  shrubs and other
landscaping  comprising  part of the Trust  Property  neatly  pruned and in good
condition;  (e) keep the Trust Property in a clean, safe and sanitary  condition
and free of trash,  rubbish and other unsightly or unhealthful  conditions;  (f)
not  change.  in any way or  restrict  the use or zoning  of the Trust  Property
without the prior written  consent of  Beneficiary  which may be withheld in its
sole discretion,  and (g) perform all other acts which from the character or use
of the Trust  Property may be reasonably  necessary to maintain and preserve its
value and utility.  Beneficiary  or Trustee,  or both,  may, at any time or from
time to time  during  normal  business  hours upon  reasonable  prior  notice to
Grantor,  enter and  Inspect or protect  the Trust  Property,  in person or by a
representation in such manner and to such extent as it may deem necessary.

         5.  COMPLETION OF  IMPROVEMENTS.  Grantor shall  complete  promptly any
improvements  that may be  commenced,  in a good and  workmanlike  manner and in
conformity with plans and specifications approved by Beneficiary. Grantor shall,
with reasonable diligence, repair and restore any portions of the Trust Property
that' may be damaged or destroyed, whether or not insurance against the cause of
such damage or destruction  is collected.  Grantor shall pay when due all claims
for work performed or materials furnished, or both, on or in connection with the
Trust Property or any part thereof and Grantor shall pay,  discharge or cause to
be removed all mechanic's, artisan's, laborer's or materialmen's charges, liens,
claims of liens or encumbrances upon the Trust Property.

         6. PRIORITY OF DEED OF TRUST.  Grantor shall,  upon written  request by
Beneficiary, appear in and prosecute or defend any action or proceeding that may
affect the  priority of this Deed of Trust or the  security of  Beneficiary  and
shall pay all reasonable costs, expenses (including the cost of searching title)
and attorneys'  fees incurred in such action or proceeding  Beneficiary  may, in
its sole discretion, appear in and defend any action or proceeding purporting to
affect the priority of this Deed of Trust or the Trust Property or the rights or
powers of Beneficiary.  Beneficiary may, in its sole discretion,  pay, purchase,
contest or compromise any adverse claim, encumbrance, charge or lien that in the
reasonable  judgment of Beneficiary  appears to be prior or superior to the lien
of this  Deed of  Trust.  All  amounts  paid,  or  incurred  by

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Beneficiary in exercising the authority  herein  granted,  including  reasonable
attorneys' fees, shall be payments made pursuant to paragraph 9 hereof.

         7.  COMPLIANCE   WITH  LAWS.   Grantor  shall  comply  with  all  laws,
ordinances,  regulations,  covenants,  conditions and restrictions affecting the
Trust  Property and Grantor  shall not suffer or permit any act to be done in or
upon the Trust Property in violation thereof.

         8.  ACTIONS  ON  BEHALF  OF  GRANTOR.   If  Grantor  fails  to  do  so,
Beneficiary,  without  demand  or  notice  and as in its  sole  judgment  it may
consider  necessary,  may do any or all things required of Grantor by any of the
provisions of this Deed of Trust or any Loan Document and incur and pay expenses
in connection therewith.

         9.  PAYMENT OF COSTS.  Grantor  shall pay to Trustee  and  Beneficiary,
promptly  upon demand,  all sums of money which either shall pay pursuant to any
of the  provisions  of this Deed of Trust,  together  with interest upon each of
said a until  repaid,  from  the  time of the  payment  thereof  at the  Default
Interest Rate specified i the Note.

         10.  DEFAULTS.  Grantor  shall be in  default  hereunder  if any of the
following shall occur (any such occurrence is herein referred to as an "Event of
Default"):

                  (a)  Failure  to pay on or  before  its due  any  indebtedness
         secured hereby, and such failure to pay shall have continued  following
         ten (10) days' written notice thereof to Grantor; or

                  (b) Any failure in  performance  of any agreement in this Deed
         of  Trust or any  other  Loan  Document  and such  failure  shall  have
         continued for thirty (30) days after giving of written notice  thereof;
         provided,  however,  that  if the  non-monetary  event  of  default  is
         incapable of being cured within thirty (30) days after  written  notice
         to  Grantor,  Beneficiary  shall  not  exercise  any of its  rights  or
         remedies so long as Grantor have commenced  appropriate  action to cure
         the  default   within  thirty  (30)  days  after  written  notice  from
         Beneficiary and Grantor diligently,  and continually,  pursue a cure of
         the non-monetary default in the sole judgment of Beneficiary; or

                  (c) Upon the  filing  of an  involuntary  petition  under  the
         United States Bankruptcy Code or any other national or state bankruptcy
         statutes,  as now in effect or as  hereafter  amended,  against  either
         Grantor,  or if Grantor  shall  allow the  appointment  of a  receiver,
         trustee,  conservator  or  liquidator  of all or any part of the  Trust
         Property,  or if any of the Trust  Property be levied upon by virtue of
         any execution, attachment, tax levy or other writ, or if liens be filed
         against the Trust Property  which  involuntary  petition,  appointment,
         levy or  filing,  as the case may be,  shall not be  released,  stayed,
         bonded or insured against in favor of Beneficiary, satisfied or vacated
         within sixty (60) days after the occurrence thereof: or

                  (d) Upon the  abandonment  of all or any material  part of the
         Trust Property; or

                  (e) Upon the breach of any material  warranty,  representation
         or certification  given in connection herewith or pursuant to any other
         Loan Document; or

                                       9
<PAGE>

                  (f) Upon the filing of a petition under Title 11 of the United
         States  Bankruptcy  Code or any  other  national  or  state  bankruptcy
         statute,  as now in effect or as  hereafter  amended,  by Grantor or if
         Grantor  shall make an  assignment  for the benefit of its creditors or
         admit in writing his or its  inability  to pay his or its debts as they
         become due.

         10A.  REMEDIES.  If an Event of Default  occurs,  Beneficiary  may,  at
 Beneficiary's election, and by or through Trustee or otherwise, exercise any or
 all of the following rights, remedies and recourses:

                  (a)  ACCELERATION.  Declare the Indebtedness to be immediately
         due and payable, without further notice,  presentment,  protest, notice
         of intent to accelerate,  notice of  acceleration,  demand or action of
         any nature  whatsoever  (each of which  hereby is  expressly  waived by
         Grantor), whereupon the same shall become immediately due and payable.

                  (b) ENTRY ON MORTGAGED PROPERTY.  Enter the Mortgaged Property
         and take  exclusive  possession  thereof and of all books,  records and
         accounts  relating  thereto.  If Grantor  remains in  possession of the
         Mortgaged Property after an Event of Default and without  Beneficiary's
         prior written  consent,  Beneficiary  may invoke any legal  remedies to
         dispossess Grantor.

                  (c) OPERATION OF MORTGAGED  PROPERTY.  Hold,  lease,  develop,
         manage, operate or otherwise use the Mortgaged Property upon such terms
         and  conditions  as   Beneficiary   may  deem   reasonable   under  the
         circumstances   (making  such  repairs,   alterations,   additions  and
         improvements   and  taking  other  actions,   from  time  to  time,  as
         Beneficiary  deems  necessary  or  desirable),  and apply all Rents and
         other  amounts  collected  by  Beneficiary  or  Trustee  in  connection
         therewith in accordance with the provisions of Section 4.8.

                  (d) FORECLOSURE AND SALE. Sell or offer for sale the Mortgaged
         Property  in such  portions,  order  and  parcels  as  Beneficiary  may
         determine,  with or without  having first taken  possession of same, to
         the highest bidder for cash at public auction.  Such sale shall be made
         in accordance  with the applicable  provisions of Section 51.002 of the
         Texas Property Code, as amended,  or, if and to the extent such statute
         is not then in force, with the applicable requirements,  at the time of
         the sale, of the successor statute or statutes, if any, governing sales
         of Texas real property under powers of sale conferred by deeds of trust
         relating to the sale of real estate or by Chapter 9 of the UCC relating
         to the sale of  collateral  after default by a debtor (as such laws now
         exist  or may be  hereafter  amended  or  succeeded),  or by any  other
         present or subsequent  articles or enactments  relating to same. At any
         such sale (i) whether made under the power herein  contained,  the UCC,
         any other legal requirement or by virtue of any judicial proceedings or
         any other legal right,  remedy or  recourse,  it shall not be necessary
         for  Trustee  to  be  physically   present,  or  to  have  constructive
         possession of, the Mortgaged Property (Grantor shall deliver to Trustee
         any portion of the  Mortgaged  Property not actually or  constructively
         possessed by Trustee immediately upon demand by Trustee), and the title
         to and  right of  possession  of any such  property  shall  pass to the
         purchaser thereof as completely as if Trustee had been actually present
         and  delivered  to  purchaser  at such sale,  (ii) each

                                       10
<PAGE>

         instrument  of  conveyance  executed by Trustee shall contain a general
         warranty of title,  binding upon Grantor,  (iii) each recital contained
         in any  instrument  of conveyance  made by Trustee  shall  conclusively
         establish  the truth  and  accuracy  of the  matters  recited  therein,
         including,   without   limitation,   nonpayment  of  the  Indebtedness,
         advertisement  and conduct of such sale in the manner  provided  herein
         and  otherwise  by  law,  and  appointment  of  any  successor  Trustee
         hereunder, (iv) any prerequisites to the validity of such sale shall be
         conclusively  presumed  to have  been  performed,  (v) the  receipt  of
         Trustee or other party making the sale shall be a sufficient  discharge
         to the purchaser or purchasers  for his or their  purchase money and no
         such  purchaser  or  purchasers,  or his or their  assigns or  personal
         representatives,   shall   thereafter   be  obligated  to  see  to  the
         application  of such purchase money or be in any way answerable for any
         loss,  misapplication  or  non-application  thereof,  and  (vi)  to the
         fullest  extent  permitted  by law,  Grantor  shall be  completely  and
         irrevocably  divested of all of its right, title,  interest,  claim and
         demand  whatsoever,  either at law or in equity, in and to the property
         sold and such sale shall be a  perpetual  bar both at law and in equity
         against Grantor, and against all other persons claiming or to claim the
         property  sold or any part  thereof,  by,  through  or  under  Grantor.
         Beneficiary  may be a purchaser at such sale and if  Beneficiary is the
         highest bidder, may credit the portion of the purchase price that would
         be  distributed  to  Beneficiary  against the  Indebtedness  in lieu of
         paying cash.

                  (e)  RECEIVER.  Make  application  to  a  court  of  competent
         jurisdiction  for,  and  obtain  from such  court as a matter of strict
         right and  without  notice to Grantor or regard to the  adequacy of the
         Mortgaged   Property  for  the  repayment  of  the  Indebtedness,   the
         appointment  of a  receiver  of the  Mortgaged  Property,  and  Grantor
         irrevocably consents to such appointment.  Any such receiver shall have
         all the  usual  powers  and  duties  of  receivers  in  similar  cases,
         including the full power to rent,  maintain and  otherwise  operate the
         Mortgaged Property upon such terms as may be approved by the court, and
         shall apply such Rents in  accordance  with the  provisions  of Section
         4.8.

                  (f) UCC. Exercise any and all rights and remedies granted to a
         secured  party  upon  default  under  the  Uniform   Commercial   Code,
         including,  without  limiting the generality of the foregoing:  (i) the
         right to take possession of the personal  property or any part thereof,
         and to take such other measures as  Beneficiary  may deem necessary for
         the care,  protection and  preservation of the personal  property,  and
         (ii) request  Grantor at its expense to assemble the personal  property
         and make it available to Beneficiary at a convenient  place  acceptable
         to  Beneficiary.  Any  notice of sale,  disposition  or other  intended
         action by  Beneficiary  with respect to the personal  property  sent to
         Grantor in accordance with the provisions hereof at least five (5) days
         prior to such action, shall constitute  commercially  reasonable notice
         to Grantor.

                  (g) OTHER.  Exercise all other rights,  remedies and recourses
         granted  under the Loan  Documents or otherwise  available at law or in
         equity  (including an action for specific  performance  of any covenant
         contained  in the Loan  Documents,  or a  judgment  on the Note  either
         before, during or after any proceeding to enforce this Deed of Trust).

                                       11
<PAGE>

         11. ASSIGNMENT OF RENTS. All existing and future rents, leases,  issues
and  profits of the Trust  Property or any part  thereof are hereby  assigned to
Beneficiary  as  further  security  for  the  payment  of the  indebtedness  and
performance  of the  obligations,  covenants,  promises and  agreements  secured
hereby. When requested by Beneficiary from time to time, and within such time as
Beneficiary may reasonably  require,  Grantor shall execute,  deliver and record
separate lease assignments covering any and of all of the leases that may affect
any part or all of the Trust Property.  Such separate lease assignments shall be
in such form and contain such  provisions as  Beneficiary  may in its discretion
require and, without limiting the generality of the foregoing,  will require any
such  tenant  to  subordinate  the  tenant's  rights to the lien of this Deed of
Trust.  Whether or not separate lease  assignments  are required by Beneficiary,
Grantor hereby  authorizes and direct the lessees,  tenants and occupants of the
Trust Property that, upon written notice from Beneficiary, all payments required
under said leases,  or in any way  respecting  same,  shall be made  directly to
Beneficiary as they become due.  Grantor hereby  relieves said lessees,  tenants
and occupants  from any  liability to Grantor by reason of said  payments  being
made to Beneficiary.  Nevertheless,  until Beneficiary  notifies in writing said
lessees,  tenants and  occupants to make such payments to  Beneficiary,  Grantor
shall be entitled  to collect all such rents  and/or  payments.  Beneficiary  is
hereby  authorized to give such notification upon the occurrence of any Event of
Default.

         12. RECEIVER AND POSSESSION OF TRUST  PROPERTY.  Upon the occurrence of
any Event of Default,  Beneficiary shall be entitled at any time without notice,
in its sole  discretion,  either by its  agents,  attorneys,  employees  or by a
receiver to be appointed by a court,  and without  regard to the adequacy of any
security for the indebtedness  hereby secured, to enter upon and take possession
of the  Trust  Property  or any part  thereof  and  Grantor  shall  upon  demand
peaceably   surrender   possession  thereof  to  Beneficiary  or  the  receiver.
Beneficiary,  in its name  and/or in the name of the  Grantor,  may  operate and
maintain all or any portion of the Trust  Property to such extent as Beneficiary
deems advisable and Grantor agrees that  Beneficiary may take whatever action it
deems necessary or proper to conserve the value of the Trust Property and to sue
for and  otherwise  collect and receive all rents,  issues and profits  thereof,
including  those past due and unpaid as well as those  accruing  thereafter  and
Beneficiary  may rent or lease the Trust Property or any portion  thereof to any
person or persons and for such periods of time and on such terms and  conditions
as Beneficiary in its sole discretion may determine. Grantor further agrees that
Beneficiary  may also take  possession of and use any and all personal  property
contained  in the Trust  Property or used by Grantor in the rental or leasing of
the Trust  Property or any part thereof.  Beneficiary  may apply all such rents,
issues and  profits  collected  or  received  by it to the  payment of costs and
expenses  incurred  in the  operation  of the Trust  Property  or to protect and
preserve the security  thereof and then in the manner  hereinabove  specified in
respect of  proceeds  of sale of the Trust  Property  or any part of all of such
moneys may be released by  Beneficiary  in its sole  discretion.  The reasonable
expense (including  receiver's fees, if any, and reasonable  compensation to any
agent  appointed  by  Beneficiary  and  reasonable  counsel  fees and  costs and
disbursements) incurred in taking possession, effecting collection or attempting
to take  possession  and  effect  collection  shall be deemed an expense of this
trust to be paid by Grantor and secured  hereby.  Neither the entering  upon and
taking possession of the Trust Property nor the collection of such rents, issues
and profits and the application or release  thereof as aforesaid,  shall cure or
waive any default or notice of trustee's  sale  hereunder or invalidate  any act
done pursuant to such notice.  In dealing with the Trust Property or any related
personal property as a beneficiary in possession Beneficiary shall be without an
liability,  charge or  obligation  therefor

                                       12
<PAGE>

to  Grantor  other  than for  willful  misconduct,  and all net loss  costs  and
expenses incurred shall be advancements covered by paragraph 9 hereof.

         13.  CONDEMNATION.  All  judgments,  awards of damages and  settlements
hereafter  made  as a  result  of  or in  lieu  of  any  condemnation  or  other
proceedings  for public use of or for any  damage to the Trust  Property  or any
part  hereof  and any award for change of grade of  streets  thereon  are hereby
assigned and shall be paid to Beneficiary.  Beneficiary  shall have the right to
participate  in any such  proceedings  and Grantor shall not settle or otherwise
resolve  any such  proceedings  or execute or deliver  any deed in lieu  thereof
without the prior  written  consent of  Beneficiary.  Grantor shall execute such
further assignments of any such award, judgment or settlement as Beneficiary may
require and Grantor shall deliver to Beneficiary all proceeds of any such award,
judgment or settlement which may be received by Grantor. Beneficiary may, at its
option and in its sole  discretion,  apply such  proceeds or any part thereof to
the payment of interest due on the indebtedness secured hereby, the reduction of
the principal amount of such  indebtedness (in the inverse order of maturity) or
the payment of any other  obligation  hereby secured or Beneficiary  may release
such proceeds or any part thereof.  Neither the  application  nor the release of
any such sum shall cure or waive any def or notice of trustee's  sale  hereunder
or invalidate any act done pursuant to such notice.

         14. ACTIONS BY BENEFICIARY. Without affecting the liability of Grantor,
any  guarantor  or any other  person  (except any person  expressly  released in
writing) for payment of any  indebtedness  secured hereby or for  performance of
any obligation contained herein, and without affecting the rights of Beneficiary
with respect to any se not expressly  released in writing,  Beneficiary  may, at
any time and from time to time,  either before or after maturity of the Note and
without notice or consent:

                  (a) Release any  guarantor or other person  liable for payment
         of all or  any  part  of the  indebtedness  or for  performance  of any
         obligation; or

                  (a)  Make  any  agreement  extending  the  time  or  otherwise
         altering the terms of payment of all or any part of the indebtedness or
         modifying  or waiving any  obligation  or  subordinating,  modifying or
         otherwise dealing with the lien or charge thereof; or,

                  (c)  Exercise or refrain  from  exercising  or waive any right
         Beneficiary may have; or

                  (d) Accept additional security of any kind; or

                  (e)  Release  or  otherwise  deal with any  property,  real or
         personal,  securing the  indebtedness  including all or any part of the
         Trust Property herein described.

         15. MARSHALLING AND ASSERTION OF REMEDIES.  If the indebtedness secured
hereby is now or  hereafter  further  secured  by  chattel  mortgages,  security
interests,  deed of trusts,  pledges,  contracts of guaranty or other additional
securities,  Beneficiary may in its sole discretion  exhaust `any one or more of
said  securities  as well as the  security  hereunder,  either  concurrently  or
independently and in such order as it may determine,  and may apply the proceeds
received upon the indebtedness  secured hereby without  affecting the status of,
or  waiving  any right to  exhaust,  all or any  other  security  including  the
security  hereunder  and  without  waiving any breach or

                                       13
<PAGE>

default or any right or power,  whether exercised  hereunder or contained herein
or in any such other  security.  Grantor  hereby  waives any right or  privilege
which  it or its  creditors  might  otherwise  have to  require  Trustee  and/or
Beneficiary  to proceed  against  the assets  encumbered  hereby or by any other
security  documents or instruments  securing the Note in any particular order or
fashion  under any legal or equitable  doctrines or  principles  of  marshalling
and/or  suretyship  and further  agrees that upon the  occurrence of an Event of
Default and after the expiration of any applicable grace period,  Trustee and/or
Beneficiary  may proceed to exercise any or all  remedies  with regard to any or
all assets encumbered  hereby or by any other security  documents or instruments
securing  the  Note,  in such  manner  and  order  as  Beneficiary  in its  sole
discretion may determine.

         16. DUE-ON-SALE OR ENCUMBRANCE.  Grantor  acknowledges that Beneficiary
is relying on the experience,  financial  condition and management  expertise of
Grantor in creating the indebtedness  represented by the Note and Grantor agrees
not to sell transfer further encumber pledge assign convey lease or in any other
manner,  whether voluntarily  involuntarily,  or by operation of law, dispose of
the Trust  property or any part thereof or turn over the management or operation
of the Trust  Property  to an person,  firm or  corporation  (any of such events
being  referred to herein as a "transfer")  without  obtaining the prior written
consent of  Beneficiary,  which consent may be granted or denied in  Beneficiary
sole and absolute  discretion Any cumulative  transfer of more than  twenty-five
percent  (25%) of the direct or indirect  beneficial  ownership  interest or the
proceeds or profits relating thereto of Grantor shall be deemed to be a transfer
Notwithstanding the foregoing to the contrary,  the existing members of Borrower
as of the date  hereof may  transfer  interests  in  Borrower  to and among each
other,  as well as to family  members or  entities  or trusts for the benefit of
family members for estate planning purposes

         In  connection  with a proposed  transfer,  Beneficiary  shall have the
right,  but not  the  obligation,  to  require  and  give  consideration  to (i)
financial  statements and other information relating to the proposed transferee,
including  information as to the financial  condition  experience and management
expertise of the proposed  transferee,  (ii)  assurances,  in form and substance
satisfactory to Beneficiary, from Grantor and all guarantors of the indebtedness
secured  hereby  that they will  continue to be liable to  Beneficiary  for such
indebtedness,  (iii) the payment to  Beneficiary of a transfer fee not to exceed
one percent (1%) of the then outstanding principal balance of the Note, plus all
of Beneficiary's  expenses  incurred in connection with such transfer,  and (iv)
that the  proposed  transferee  assume and agree to perform all  obligations  of
Grantor  by  execution  of  an  assumption   agreement  in  form  and  substance
satisfactory to Beneficiary, in its sole discretion.

         If a transfer is effected  and if  Beneficiary  does not consent to the
transfer  (if such  consent is  required  hereunder),  Beneficiary  may,  at its
option,  declare  all  indebtedness  secured  hereby to be  immediately  due and
payable  and may avail  itself of any and all  remedies  provided  herein for an
Event of Default.

         17. NO WAIVER. The acceptance by Beneficiary of any sum in payment,  or
part payment, of any indebtedness  secured hereby after the same is due or after
the recording of a notice of trustee's  sale,  shall not  constitute a waiver of
the right to require prompt payment, when due, of all other sums so secured, nor
shall such acceptance cure or waive any remaining default

                                       14
<PAGE>

or  invalidate  any sale held  pursuant  to such  notice for any such  remaining
default, or prejudice any of the rights of Beneficiary under this Deed of Trust.

         18.  SUCCESSOR  TRUSTEE.  Beneficiary  may, at any time Beneficiary may
desire,  appoint in writing another trustee in the place and stead of Trustee or
any  successor in trust and the title herein  conveyed to said Trustee  shall be
vested in said  successor.  Trustee may resign by mailing or  delivering  notice
thereof to Beneficiary and Grantor.

         19. TRUSTS IRREVOCABLE. The trusts herein created are irrevocable.

         20. OIL, GAS OR MINERAL RIGHTS. Grantor hereby assigns and transfers as
additional  security to Beneficiary all damages,  royalties and revenue of every
kind, nature and description  whatsoever that Grantor may be entitled to receive
from any person,  company or corporation owning or having or hereafter acquiring
a right to the oil, gas or mineral rights and reservations of the Trust Property
with the right in Beneficiary to receive and receipt therefor and apply the same
to said  indebtedness  either before or after any default  beyond any notice and
cure period  hereunder and Beneficiary may demand,  sue for and recover any such
payments but shall not be required so to do.

         21. FURTHER  ADVANCES.  Upon request of Grantor or their  successors in
ownership  of the  Trust  Property,  Beneficiary  may  hereafter,  in  its  sole
discretion,  at any time before full payment of the indebtedness secured hereby,
make further advances to Grantor or said successors in ownership,  and the same,
with  interest  and  late  charges,  shall be  secured  by this  Deed of  Trust;
provided,  however,  that  the  principal  secured  by this  Deed of  Trust  and
remaining  unpaid shall not at the time of and including any such advance exceed
the  original  principal  sum  secured  hereby;  and  provided  further  that if
Beneficiary, in its sole discretion, shall make a further advance or advances as
aforesaid,  Grantor or said successors in ownership agree to execute and deliver
to Beneficiary a promissory note to evidence the same,  payable on or before the
maturity of the  indebtedness  secured  hereby and  bearing  such other terms as
Beneficiary shall require. Beneficiary shall under no circumstances be obligated
to make further  advances and Grantor  acknowledges  and agrees that Beneficiary
has made no such commitment, either specifically or by implication.

         22. STATUTE OF LIMITATIONS.  The pleading of any statute of limitations
as a defense to any and all obligations  secured by this Deed of Trust is hereby
waived to the full extent permissible by law.

         23. SEVERABILITY.  If any one or more of the provisions of this Deed of
Trust or the  applicability of any such provision to a specific  situation shall
be held  invalid or  unenforceable,  such  provision  shall be  modified  to the
minimum extent necessary to make it or its application valid and enforceable and
the validity and  enforceability  of all other  provisions of this Deed of Trust
and all other applications of such provisions shall not be affected thereby. The
invalidity of any one or more of the covenants,  phrases, clauses,  sentences or
paragraphs of this Deed of Trust shall not affect the remaining portions of this
Deed of Trust or any part  thereof and this Deed of Trust shall be  construed as
if such invalid covenants,  phrases,  clauses,  sentences or paragraphs, if any,
had not been inserted herein.

                                       15
<PAGE>

         24. REALTY MORTGAGE.  Grantor acknowledges that it is the intent of the
parties  hereto that this Deed of Trust  qualify and operate as a deed of trust,
and as a realty  mortgage,  upon real  property  pursuant  to Texas law.  In any
proceeding  or action to enforce  this Deed of Trust,  Beneficiary  may,  at its
option,  denominate this Deed of Trust a realty mortgage and initiate a judicial
foreclosure of the Trust Property.  If a court of competent  jurisdiction  finds
this Deed of  Trust,  ineffective,  unenforceable  or void as a deed of trust or
that its priority is impaired or reduced,  this Deed of Trust shall be construed
as a realty  mortgage  wherein  Grantor  is the  mortgagor  and  Beneficiary  is
mortgagee,  and may thereby be foreclosed  after  default  beyond any notice and
cure period or breach hereunder.

         25. CHARGES FOR STATEMENTS.  Grantor shall pay Beneficiary's reasonable
charges to the maximum amount  permitted by law for any statement  regarding the
obligations  secured  by this Deed of Trust  requested  by  Grantor  or in their
behalf.

         26.  ATTORNEY'S FEES. If it becomes necessary for Beneficiary to employ
legal  counsel  or to take  legal  action to collect  the  indebtedness  secured
hereby,  to enforce any provision hereof, or to protect any of the Beneficiary's
rights hereunder, Grantor shall pay to Beneficiary, in addition to taxable costs
of any legal proceeding or action, reasonable attorneys' fees actually incurred,
and all costs of preparation and conduct of such proceedings, including costs of
title searches and title policy  commitments,  all of which shall be a lien upon
the Trust Property and secured hereby.

         27.  OFFSET.  No offset  or claim  that  Grantor  now has or may in the
future have against  Beneficiary shall relieve Grantor from paying  installments
or performing  any other  obligation  herein or secured  hereby.  Grantor shall,
within ten (10) days any request of Beneficiary,  furnish a written statement of
the  amount  due  on  the  Note  end  a  description  of  any  alleged  offsets,
counterclaims or defenses to the payment thereof.

         28.  FURTHER  ASSURANCES.  Grantor  shall,  upon  request of Trustee or
Beneficiary,  promptly  correct  any  defect,  error or  omission  which  may be
discovered  in the  contents  of  this  Deed of  Trust  or in the  execution  or
acknowledgment  he and  will  execute,  acknowledge  and  deliver  such  further
instruments  and do such further act as may be necessary or as may be reasonably
requested  by  Trustee  or by  Beneficiary  to carry  out more  effectively  the
purposes  of this Deed of Trust,  to subject to the lien and  security  interest
hereby  created any of  Grantor's  properties,  rights or  interests  covered or
intended to be covered hereby and to perfect and maintain such lien and security
interest If any rights,  easements or other hereditaments shall hereafter become
appurtenant to the Trust Property, or any part thereof, Grantor shall deliver to
Beneficiary,  upon demand, a supplemental  Deed of Trust in the form approved by
Beneficiary in its sole  discretion  governing  such rights and  interests.

         29. PERSONAL PROPERTY. The indebtedness and obligations secured by this
Deed of Trust are also secured by security  interests in Grantor's right,  title
and interest in all fixtures,  equipment and other personal  property used upon,
in or  about or to be  incorporated  into  any of the  improvements  at any time
situated  on the  Trust  Property  or any part  thereof  or used by  Grantor  in
connection  with said  improvements.  Grantor  covenants and agrees that it will
cause Beneficiary to acquire valid and effectual first security interests in all
such  fixtures  and  equipment,  together  with all  replacements  thereof,  and
additions thereto, and the proceeds

                                       16
<PAGE>

thereof,  or of the Grantor' right,  title and interest therein.  Grantor agrees
that without the written  consent of Beneficiary,  no security  interest will be
created or suffered to be created under the provisions of the Uniform Commercial
Code, as the same together with any amendments or supplements  thereto may be in
effect.  In the event of a breach of this paragraph 29,  Beneficiary may, at its
option, declare all sums secured by this Deed of Trust to be immediately due and
payable and may avail  itself of any and all  remedies  provided in this Deed of
Trust  upon the  occurrence  of an Event of  Default.  Grantor  agrees  that all
property of every nature and description  covered by the lien and charge of this
Deed of  Trust,  together  with  all such  property.  interest  covered  by such
security  interest or  interests,  are  encumbered  as a unit,  and upon default
beyond any notice and cure period by Grantor hereunder, or under any security or
other agreement now or hereafter  securing the indebtedness  hereby secured,  in
Beneficiary's  sole  discretion,  may be  foreclosed  upon or  sold in the  same
proceedings  or at the same time,  and all of said  property and interest may in
Beneficiary's  sole discretion,  be sold as such in one unit as a going business
and not in lots or parcels,  subject to the  provisions of  applicable  law. The
filing of any  financing  statement  relating to any such  property or rights or
interest shall not be construed to diminish or alter any of Beneficiary's rights
or priorities hereunder.

30. IMPOUNDS.  At the option of Beneficiary or if Grantor becomes  delinquent in
any payment  required by any of the Loan  Documents,  and in order to insure the
payment  of  taxes  assessments,  and/or  premiums  for the  insurance  required
pursuant to paragraphs 1 and 2 hereof, Grantor shall pay to Beneficiary,  at the
time of the making of installments  under the Note, and in addition to any other
payments  required  hereunder,  monthly  installments of such payments and shall
deliver  promptly to  Beneficiary  all bills and notices for such  payments Such
installments  shall equal the  estimated  amounts of such  payments next due (as
reasonably   estimated  by  Beneficiary)  less  all  installments  already  paid
therefor,  divided  by the  number of months  that are to elapse  before one (1)
month  prior  to the  date  when  such  payments  are  due If  amounts  paid  to
Beneficiary  under provisions of this paragraph 30 are insufficient to discharge
the  obligation  of Grantor for such  payments  as the same became due,  Grantor
shall pay to Beneficiary  upon demand such additional sums as may be required to
fully pay and  discharge  these items All moneys paid to  Beneficiary  under the
terms  of  this  paragraph  30  may,  at  Beneficiary's  option:  (a) be held by
Beneficiary  to pay taxes  assessments  and  insurance  before  the same  become
delinquent,  (b) be credited  directly to interest and/or principal due upon the
indebtedness  secured  hereby and upon  payment by  Beneficiary  of such  taxes,
assessments  or insurance  the amount so paid shall be added to the principal of
the  indebtedness  secured  hereby.  Nothing in this  paragraph 30 shall release
Grantor of his  obligation  to pay said taxes  assessments  and insurance as the
same become due and payable under the  provisions of this Deed of Trust Deposits
made under this paragraph 30 may be commingled with Beneficiary's  general funds
and Beneficiary have no liability to Grantor for any interest on such deposits

         31.  FINANCIAL  STATEMENTS  AND  REPORTS.   Grantor  shall  deliver  to
Beneficiary,  or  cause to be  delivered  to  Beneficiary,  such  financial  and
operating statements for Grantor and, if applicable, the guarantors (for so long
as any guaranty is in effect),  as and when required  under the Loan  Agreement.
Upon  Beneficiary's  reasonable  request,  made from time to time, Grantor shall
deliver to Beneficiary such other reports, financial -statements and information
concerning Grantor,  the guarantors,  if applicable (for so long as any guaranty
is in effect), and the Trust Property,  including without limitation,  operating
budgets,   rent  schedules,   leases,  and  income  and  expense  statements  as
Beneficiary may request.  All such financial and operating  statements  shall

                                       17
<PAGE>

be prepared using generally accepted accounting principles  consistently applied
from applicable period to period.

         32.  HAZARDOUS  SUBSTANCES.  Grantor  hereby  represents,  warrants and
covenants to Beneficiary that Grantor has not caused or permitted,  nor shall it
cause or permit, the Trust Property to be used to generate, treat, store, handle
or dispose of hazardous substances,  waste or material as defined by the Federal
Comprehensive Environmental Response Compensation and Liability Act, the Federal
Resource  Conservation  and Recovery Act, the Federal Toxic  Substances  Control
Act, the Texas  Environmental  Quality Act or any other federal,  state or local
law,  regulation or ordinance on the Trust  Property,  and that, no activity has
occurred on the Trust Property  which could have toxic results;  and there is no
proceeding or inquiry  pending or, in Grantor's  knowledge,  anticipated  by any
governmental  agency or other  authority  with respect  thereto.  Grantor  shall
provide  Beneficiary  upon request  such  information  in  Grantor's  possession
regarding the disposal of such hazardous substances, waste or material either on
the Trust  Property  or upon  property  which  Grantor or any other  party owns,
controls or leases or of which Grantor has knowledge which may affect the use of
the Trust  Property.  Grantor  further  represents  and warrants  that the Trust
Property is not now, nor, to Grantor's knowledge, and except as disclosed in the
Environmental  Report,  has  ever  been,  used  for the  production,  treatment,
collection,  storage  or  disposal  of any  refuse,  objectionable  waste or any
material:

         (a) In a manner  inconsistent with the regulations  issued by the Texas
Department of Environmental Quality; or

         (b) So as to require a permit or approval from the Texas  Department of
Environmental Quality; or

         (c) In a manner  which  would cause the  [local]  Department  of Health
Services to inspect the Trust  Property or issue  orders  pursuant to the county
health code.

         Grantor agrees to indemnify, defend and save harmless Beneficiary,  its
officers,  directors,  employees, agents and successors in interest from any and
all losses, damages costs, remedial action,  expenses,  liabilities,  penalties,
fines,  forfeitures  demands  claims  causes  of action  and  costs or  expenses
incidental  thereto  (including  all costs of defense  settlement and attorneys'
fees) which any or all of them may hereinafter  suffer incur be responsible for,
pay as a result of, arising out of the breach of any representation, warranty or
obligation of Grantor as set forth in this  paragraph 32. The provisions of this
paragraph 32 are in addition to those set forth in the Loan Agreement and in the
Certificate and Indemnity Regarding Hazardous  Substances executed by Grantor of
even date herewith.

         33. RECONVEYANCE.  Upon written request of Beneficiary stating that all
sums secured hereby have been paid, and upon surrender of this Deed of Trust and
the Note to Trustee for  cancellation  and retention and upon payment by Grantor
of its fees, Trustee shall reconvey,  without warranty,  the estate in the Trust
Property then held by Trustee The grantee in such reconveyance may be designated
and described as the "person or persons legally  entitled  thereto," or by other
appropriate terms.

                                       18
<PAGE>

         34. SUCCESSORS. Subject to the provisions of paragraph 16, this Deed of
Trust shall  inure to and bind the heirs,  legatees,  devisees,  administrators,
executors,  successors and assigns of the parties hereto, and shall be construed
that wherever applicable with reference to any of the parties hereto, the use of
the  singular  number  shall  include the plural  number,  the use of the plural
number shall include the singular number,  the use Of the masculine gender shall
include the feminine gender and shall likewise be construed as applicable to and
including a corporation or  corporations  that may be a party or partied hereto.
The term  "Beneficiary"  shall mean the owner and holder of the Note, whether or
not named as  Beneficiary  herein.  Any  appointment  herein of  Beneficiary  as
attorney-in-fact for Grantor shall be with full power of substitution. This Deed
of Trust was prepared after negotiations by and between Grantor and Beneficiary;
the fact that it has been produced by one party does not require the language of
this  Deed  of  Trust  to  be  strictly  construed  against  either  Grantor  or
Beneficiary.

         35. NOTICE OF TRUSTEE'S SALE. Grantor hereby request that a copy of any
notice of trustee's sale  hereunder be mailed to it at its address  hereinbefore
set forth.

         36.  INTEREST  LIMITATIONS.  If,  from  any  circumstances  whatsoever,
payment or performance of any provision of this Deed of Trust or of the Note, at
the time  performance of such provision  shall be due, shall require  payment in
excess of that  permitted by any  applicable  law, the  obligation to be paid or
performed shall be reduced to the limit allowed by such law, so that in no event
shall any exaction be possible under this Deed of Trust,  the Note, or any other
agreement given in connection  herewith,  that is in excess of any limitation of
law. By acceptance of this Deed of Trust, Beneficiary expressly waives the right
to demand any such excess.  The  provisions  of this  paragraph 31 shall control
every  other  provision  of this  Deed of  Trust,  the Note and any  other  such
agreement.

         37. TIME OF  ESSENCE.  Time is of the essence of this Deed of Trust and
all of its provisions. Any waiver or consent by Beneficiary shall relate only to
the  particular  matter or item  involved  and  shall be  without  prejudice  to
Beneficiary; as to any subsequent required for a waiver or consent,  Beneficiary
may insist on strict compliance with the terms and conditions hereof.

         38. NOTICES.  Unless otherwise  required by applicable law, all notices
required to be given  hereunder  shall be either  served  personally  or by U.S.
mail,  postage prepaid,  and addressed,  to Grantor,  Trustee and Beneficiary at
their addresses first above written.  Such addresses may be changed by notice to
the other  parties  given in the same manner as provided in this  paragraph  38.
Notices  given by U.S.  mail shall be deemed to have been given upon the deposit
thereof in the U.S. mail.

         39.  GOVERNING  LAW.  This  Deed of  Trust  shall  be  governed  by and
construed in accordance with the laws of the State of Texas.

         40. DEFINITIONS AND HEADINGS.  Unless the context indicates  otherwise,
the  capitalized  terms used in this Deed of Trust shall have the  meanings  set
forth in the Loan  Documents.  Headings in this Deed of Trust are solely for the
convenience  of  Grantor,  Trustee  and  Beneficiary  and shall not  affect  the
interpretation of the provisions hereof.

                                       19
<PAGE>

41.   CROSS-DEFAULT.   A  default  hereunder  shall,  at  Beneficiary's  option,
constitute a default under all other Loan Documents and a default under any Loan
Document shall, at Beneficiary's option, constitute a default under this Deed of
Trust.

42.  INDEMNIFICATION.  Grantor agrees to indemnify,  defend and hold Beneficiary
harmless  from  and  against  any  and  all  claims,  charges,  actions,  suits,
proceedings,  lawsuits,  obligations,  liabilities,  fines, penalties, costs and
expenses,  including, but not limited to, reasonable attorneys' fees incurred by
Beneficiary,  alleged  by or in  favor of  Grantor  or any  principal,  partner,
stockholder,  officer, director, employee or agent thereof, or by or in favor of
any broker,  realtor,  agent or other party  claiming  brokerage  commissions or
finder's fees in connection with the Loan (other than for claims for commissions
or fees claimed by persons or parties employed or engaged by Beneficiary), or in
connection  with making or collecting the Loan or enforcing the Loan  Documents.
Grantor  shall  further  indemnify  Beneficiary  and hold  Beneficiary  harmless
against  any and all  liabilities  (including  any and  all  taxes  and  special
assessments levied against the Mortgaged Property or any improvements, fixtures,
or personal property located thereon), obligations,  losses, damages, penalties,
actions,  judgments,  suits, claims, costs,  expenses,  and disbursements of any
kind or nature  whatsoever  which may be imposed  on,  incurred  by, or asserted
against  Beneficiary,  in any way  relating  to,  or  arising  out of,  the Loan
Documents or any of the transactions  contemplated  therein, or the construction
and/or  operation of the Mortgaged  Property  (except claims caused by the gross
negligence or willful  misconduct of  Beneficiary),  to the extent that any such
indemnified liabilities result, directly or indirectly,  from any claims made or
actions, suits, or proceedings commenced by or on behalf of any person or entity
other than  Beneficiary.  The obligations and provisions of this paragraph shall
continue  and  remain  in full  force  and  effect  after  the  Loan  and  other
obligations  of  Grantor  under  this Deed of Trust  and  under  the other  Loan
Documents have been paid or discharged in full and shall survive the termination
of this Deed of Trust and the repayment of the Loan.

         IN WITNESS WHEREOF, this Deed of Trust has been executed the date first
above written.
                                          /s/ Mark Potter
                                          -----------------------------------
                                          Mark Potter

 STATE OF TEXAS            ss.
                           ss.
 COUNTY OF MONTGOMERY      ss.

         On April 4, 2006, before me, a Notary public,  personally appeared Mark
Potter,  who is personally known to me to be the person whose name is subscribed
to the within instrument and acknowledged to me that he executed the same as his
free and voluntary act for the uses and purposes mentioned in the instrument.

         IN WITNESS WHEREOF, I have hereunto set my hand and official seal.

                                       /s/ Stephen W. McClain
                                       -----------------------------------------
         (SEAL)                        Printed Name of Notary Stephen W. McClain
                                                              ------------------
                                       Notary Public, State of Texas

My commission expires: September 11, 2009

                                       20
<PAGE>

                                   EXHIBIT "A"

                                LEGAL DESCRIPTION

         BEING  9.000  ACRES OF LAND IN THE  W.S.  ALLEN  SURVEY,  A-2,
         MONTGOMERY  COUNTY,  TEXAS,  SAID 9.000  ACRES  BEING OUT OF A
         CERTAIN  82.10 ACRE TRACT OF LAND DEED OF WHICH IS RECORDED IN
         VOLUME 524, PAGE 263,  MONTGOMERY  COUNTY DEED  RECORDS,  SAID
         9.000 ACRES BEING DESCRIBED MORE PARITCULARY AS FOLLOWS:

         BEGINNING at a 1" galvanized  iron pipe found for the Southwest  corner
of the said 82.10 acre tract, the Northwest corner of the First Christian Church
5.7225 acre tract of land deed of which is recorded  under  County  Clerk's File
Number  8421004,  Montgomery  County  Real  Property  Records,  same  being  the
Southwest  corner of the herein described tract, and being 0.60 feet East of the
East line of McDade Estates, Section 1, a Subdivision,  map of which is recorded
in Cabinet A, Sheet 12, Montgomery County Map Records;

         THENCE N.  16(degree) 06' 00" W., along the West line of the said 82.10
acre tract, generally 0.60 feet East of the East line of said McDade Estates for
a distance of 803.59 feet to a 1/2" iron rod set for the Northwest corner
of the herein described tract;

         THENCE S.  74(degree)  20' 15E E.,  leaving  the West line of the 82.10
acre tract,  across the 82.10 acre tract for a distance of 851.68 feet to a 1/2"
iron rod set for the Northeast corner of the herein described tract, in the West
line of State Highway Loop 336,  (varying width right of way Vol. 1045, Pg. 385,
M.C.D.R.);

         THENCE S.  08(degree)  57' 38" W., along the West line of said Loop 336
for a distance of 400.00 feet to a 4" x 4" TXDOT concrete monument found for the
Southeast  corner of the herein  described tract, in the South line of the 82.10
acre tract, the North line of the said Church tract, from whence a 5/8" iron rod
found  inside a 1" iron pipe for the  Southeast  corner of the 82.10  acre tract
bears N.  74(degree) 37' 54" E., 735.81 feet, a 4" x 4" TXDOT concrete  monument
found for the Northeast  corner of the Church tract bears N.  74(degree) 37' 54"
E., 5.55 feet;

         THENCE S.  74(degree)  37' 54" W.,  leaving  the West line of Loop 336,
along the South line of the 82.10 acre tract, the North line of the Church tract
for a distance of 554.75 feet to the POINT OF BEGINNING  and  containing  in all
9.000 acres of land.

                                       21Exhibit 10.5

                           CONSTRUCTION LOAN AGREEMENT

DATE:                            April 4, 2006
BORROWERS:                       Atlantis Laboratories, Inc.
                                 408 Hall Street
                                 Conroe, Texas 77301

                                 Mark Potter
                                 408 Hall Street
                                 Conroe, Texas 77301

LENDER:                          Klinger Advanced Aesthetics, Inc.
                                 501 Merritt 7, 5th Floor
                                 Norwalk, Connecticut  06851

MAXIMUM LOAN AMOUNT:             $650,000

         THIS  CONSTRUCTION  LOAN  AGREEMENT  is entered into as of the date set
forth  above,  by  and  between  Borrowers  and  Lender,  in  connection  with a
construction  loan  from  Lender  to  Borrowers  that  is  evidenced  by a  Loan
Promissory  Note of even date  herewith  (the  "NOTE")  made by Borrowers in the
amount indicated above (the "LOAN") in favor of Lender or its order. The Note is
secured by a  Construction  Deed of Trust,  Security  Agreement,  Assignment  of
Leases and Rents, and Fixture Filing (the "CONSTRUCTION DEED OF TRUST") creating
a lien on the real property  legally  described on EXHIBIT A attached hereto and
incorporated  herein by this  reference  (the  "PROPERTY").  The Loan is for the
specific purposes set forth on SCHEDULE 1 attached hereto (the "PROJECT").

         NOW, THEREFORE, the parties agree as follows:

         1. CERTAIN DEFINITIONS.  As used herein, the following terms shall have
the meanings set forth below:

                  1.1  "BUDGET"  means a budget or series of budgets  that cover
all Eligible Costs for the Project that identify the source and use of all funds
necessary to pay Eligible  Costs;  and that have been reviewed and approved,  in
its sole discretion,  by Lender or any third-party consultant retained by Lender
to review such  Budget  prior to any Draws  hereunder  for  construction  of the
Project.

                  1.2  "CONSTRUCTION  DOCUMENTS" means the general  construction
contract between  Borrowers and any general  contractor for the rendering of all
services and the

<PAGE>

         furnishing  of all  materials  for  the  construction  of the  Project,
         together with any other or additional  construction  contracts  entered
         into in connection  with the  construction  of the  improvements on the
         Property, and all subcontracts,  Plans and Specifications,  and related
         documents, in all cases satisfactory in form and substance to Lender.

                  1.3  "DRAW"  means  a  disbursement   of  funds  hereunder  in
accordance  with  Section  5  below  and  other  applicable  terms  of the  Loan
Documents.

                  1.4 "DRAW AFFIDAVIT" means the Affidavit for Construction Draw
in a form  required by Lender that  summarizes  the status of  construction  and
identifies  all unpaid  invoices for the Project and sets forth such  additional
information  as  Lender  may  require  regarding   Eligible  Costs,   percentage
completion,  conformance  with the  applicable  Budget,  and  other  information
related to the Project

                  1.5 "ELIGIBLE  COSTS" means,  as  applicable,  the expenses of
improving  the  Property  as  set  forth  in  the  Budget,  including,   without
limitation:   interest  payments  on  the  Loan,  draw  fees,   development  and
construction costs,  recording fees, closing and sale costs, and any other costs
that Lender may approve in its sole discretion.

                  1.6 "LOAN DOCUMENTS"  means the Note, the Deed of Trust,  this
Agreement, and any other documents evidencing,  securing, or otherwise governing
the Loan.

                  1.7  "MATURITY  DATE" shall have the meaning  ascribed to such
term in the Note.

                  1.8 "PLANS AND SPECIFICATIONS" means, as applicable, the final
development  plans  and  specifications  and the  full  set of  engineering  and
architectural plans and specifications for the construction of the Project,  all
as reviewed and approved by Lender.

         2. USE OF LOAN PROCEEDS. The proceeds of this Loan will be used for the
purposes set forth on SCHEDULE 1 attached hereto and incorporated herein and not
for any other purpose.  Borrowers  shall make requests for Draws available under
the Note in  accordance  with  Section 5 below,  which  shall not at any time to
exceed the maximum Loan Amount.  Lender will  maintain  records  reflecting  the
maximum amounts available under the Loan, amounts disbursed,  payments received,
interest  accrued,  and  other  matters  related  to the  Loan,  which  shall be
conclusive evidence of amounts owing thereunder absent manifest error.

         3. CONSTRUCTION LOAN TERMS.

                  3.1 INTEREST AND PAYMENT  PROVISIONS.  The applicable interest
rate, loan term, and other payment provisions shall be as set forth in the Note,
as the Note may be amended.

                  3.2 LOAN COSTS.  Borrowers shall pay to Lender on demand,  all
out-of-pocket costs of Lender related to the Loan, including without limitation:
title insurance premiums,  appraisal fees,  recording costs, budget review fees,
third-party  architect/engineer  fees,  fees  for  budget  reviews,  if any,  by
third-party consultants,  attorneys' fees, and all costs and expenses identified
in Section 10.3 below.

                                       2
<PAGE>

         4.  CONDITIONS  TO CLOSING.  Lender's  obligation to close the Loan and
allow any Draws  hereunder shall be subject to the  satisfaction,  at Borrowers'
sole cost and expense, of each of the following  conditions on or before closing
of the Loan and prior to each Draw, or as otherwise required herein:

                  4.1 RECORDING OF DEED OF TRUST. The Construction Deed of Trust
and any other documents  necessary to perfect Lender's  security interest in the
Property shall have been recorded in the appropriate  jurisdiction and Borrowers
shall have paid all  recording  fees and removed all  encumbrances  necessary to
perfect the Deed of Trust as a first lien on the  Property,  subject only to the
Deed of Trust dated April 4, 2006 by Borrowers  to Lender  executed and filed in
connection with the acquisition of the Property.

                  4.2 TITLE POLICY.  After  recordation of the Deed of Trust and
before  any  Draw is made  hereunder,  Borrowers  shall  have  procured  an TLTA
extended  coverage  lender's  policy of title insurance (or its equivalent) in a
form and issued by a title  company  satisfactory  to Lender  for the  principal
amount of the Loan,  insuring the Construction  Deed of Trust as a first lien on
the Property  subject only to the Deed of Trust dated April 4, 2006 by Borrowers
to Lender executed and filed in connection with the acquisition of the Property,
without exception for mechanics' or materialmen's  liens. The final policy shall
be subject only to such  exceptions  as may be approved in writing by Lender and
include such endorsements as Lender may require.  No work of any character is to
be  commenced or  materials  delivered  before such title policy is furnished to
Lender and Lender has advised  Borrowers  that such policy has been received and
is  acceptable  to  Lender,  except  to the  extent  that any  title  policy  or
endorsement  provided to Lender  insures the lien  priority of Lender's  deed of
trust  despite  any such prior work and  without  exception  for  mechanics'  or
materialmen's   liens.   The  intention  of  the  parties  hereto  is  that  the
Construction  Deed of Trust is and  shall  continue  to be prior to any labor or
materialmen's  liens.  If any  material is delivered  or work  performed  before
Lender has received such policy,  and exceptions for mechanics' or materialmen's
liens appear in the final policy,  Lender may, at its option, refuse to make any
Draws hereunder  other than to pay all expenses  incurred in connection with the
Loan and proceed to exercise any and all remedies  available to Lender under the
Loan Documents upon the occurrence of an Event of Default.

                  4.3 PLANS/PERMITS. Borrowers shall have provided Lender with a
complete set of Plans and Specifications for the Project, together with evidence
satisfactory  to Lender that  Borrowers  have obtained all permits and approvals
necessary to allow Borrowers to proceed with the  construction of the Project in
accordance with the Plans and Specifications.

                  4.4  INSURANCE.  Borrowers  shall have  provided  Lender  with
evidence  acceptable to Lender of the insurance  required to be maintained under
any of the Loan  Documents,  which  insurance  shall be in form and amount,  and
issued by companies satisfactory to Lender.

                  4.5 THIRD PARTY  CONTRACTS.  Lender  shall have  received  and
approved all  engineer's  or  architects'  contracts,  the general  contractor's
contract,   and  such  other  contracts  as  Lender  may  require   relating  to
construction  of  the  Project,  and  a  list  of  all  known  and  contemplated
contractors used for development of the Project.

                                       3
<PAGE>

                  4.6  UTILITIES.  Borrowers  shall  have  delivered  to  Lender
evidence satisfactory to Lender that all utilities,  including water,  electric,
gas and  telephone,  and all storm and sanitary  sewer  drainage  facilities are
available at the Property for  utilization by Borrowers for the  development and
use of the Project,  and that the  respective  lines and treatment or generating
plants are of adequate size and capacity to serve the Project.

                  4.7  SURVEY.  At  Lender's   request,   Borrowers  shall  have
delivered to Lender a current survey,  in a form  acceptable to Lender,  showing
the Property to be free from encroachment and otherwise acceptable to Lender.

                  4.8 SOIL TESTS,  ENVIRONMENTAL  REPORT.  Borrowers  shall have
delivered to Lender copies of all soil  analysis  reports,  all soil  compaction
tests, all environmental reports or statements,  and all other tests prepared or
performed  with respect to the Project,  all of which shall be  satisfactory  to
Lender in form and content.

                  4.9 FEES AND  EXPENSES.  Borrowers  shall have paid all legal,
appraisal,  and inspection fees; title insurance and survey costs; recording and
filing  fees;  real  estate  commissions;  hazard and  liability  insurance  and
property  taxes on the  Property;  and any and all  other  charges  or  expenses
incurred by Lender in connection  with the Loan or the  preparation  of the Loan
Documents.  Borrowers shall  indemnify and hold Lender harmless  against any and
all claims for such fees, charges, commissions,  taxes, or other expenses of any
kind in any way connected with the Loan.

         5. AUTHORITY DOCUMENTS.

                  5.1  ORGANIZATIONAL  DOCUMENTS.  Atlantis  shall have provided
Lender with a certified copy of its charter documents and bylaws.

                  5.2 GOOD STANDING  CERTIFICATES.  Atlantis shall have provided
Lender with a good  standing  certificate  issued by the  Secretary  of State of
Texas.

                  5.3  RESOLUTIONS  AND CONSENTS.  Borrowers shall have provided
Lender with a certified  resolutions  and/or  consents  authorizing  Atlantis to
enter into the Loan Documents.

                  5.4   REPRESENTATIONS.   All  representations  and  warranties
contained in this Agreement and all of the other Loan  Documents  shall be true,
correct and complete.

                  5.5 DELIVERY OF LOAN DOCUMENTS.  Borrowers shall have executed
and  delivered  to Lender all Loan  Documents  required  by  Lender,  including,
without limitation,  an indemnity  regarding  hazardous  substances and building
laws,  and such  other  documentation  as Lender  may  require  to carry out the
provisions and purposes of this Agreement and the Loan.

                  5.6 OTHER CONDITIONS.  Borrowers shall have fulfilled each and
every other condition to closing set forth in SCHEDULE 1 attached hereto,  or of
which Borrowers were otherwise advised by Lender.

                                       4
<PAGE>

         6. CONSTRUCTION DRAWS.

                  6.1  DRAW  PROCEDURES.  Borrowers  shall  make  periodic  Draw
requests at such frequency as Lender, in its sole discretion,  may allow,  which
shall cover all amounts being requested hereunder,  by providing Lender with all
necessary Draw Affidavits,  accompanied by all information,  authorizations, and
documents  as Lender  may  request.  If Lender  is  satisfied,  based on its own
inspections and other reliable information,  that the development of the Project
is progressing  satisfactorily  and in conformance  with all applicable Laws and
other  requirements,  and all  other  conditions  to  Draws  set  forth  in this
Agreement  have been  satisfied,  including  each of the conditions set forth in
Section 4 above,  Lender will  disburse  the  requested  Draw into an account of
Borrowers.  Lender  shall not be required to fund any Draw  unless,  on the date
such Draw is requested  and to be made,  Borrowers  has  fulfilled the following
requirements to the  satisfaction of Lender:  (i) all other funds that are to be
contributed  or obtained from parties other than Lender and Borrowers  have been
funded as is provided for in the Budget; (ii) all representations and warranties
contained  herein or in any of the other applicable Loan Documents shall be true
and correct;  and (iii)  Borrowers  shall be in full  compliance with all terms,
conditions and covenants herein and in all of the applicable Loan Documents.

                  6.2  PROJECT   INFORMATION.   Borrowers   shall   provide  all
information  requested by Lender,  in form and content  satisfactory  to Lender,
prior to any Draw hereunder, including without limitation:  appraisals, surveys,
recorded plats, Plans and  Specifications,  copies of all applicable permits and
governmental  approvals  obtained  for  the  Project,  copies  of  all  recorded
declarations or covenants affecting the Project,  insurance policies in form and
amount  acceptable  to Lender and issued by insurance  companies  acceptable  to
Lender,  environmental audits, project budgets, borrowing resolutions,  evidence
of corporate or other status;  current  contractor's  licenses;  lien waivers or
subordinations; evidence of all required surety bonding and insurance coverages,
and all other documents and information that Lender may require.

                  6.3 DRAW  AMOUNTS.  The  allowed  amount of each Draw shall be
determined,  at Lender's  option:  (i) by Lender's review of receipted  invoices
provided by Borrowers and Lender's  confirming  physical  inspection,  (ii) on a
percentage  completion  basis with  reference to the  schedules  included in the
applicable  approved  budget,  as  established  by a physical  inspection of the
construction  conducted by Lender or its agent (or, at Lender's sole discretion,
as disclosed by the information provided by Borrowers in the Draw Affidavit), or
(iii) by a combination  of the foregoing  methods.  Lender shall make Draws only
for the categories and line items set forth in the Budget.  Borrowers shall have
no right to reallocate  costs or Loan proceeds  between  different line items or
between  categories  without Lender's  specific written  approval.  Lender shall
require  that  Borrowers  contribute  any funds  necessary to pay any portion of
Eligible  Costs  incurred to the date of  Borrowers'  Draw  request that are not
covered  by the  applicable  Draw.  Draw  inspections  will be  made  by  Lender
personnel  or  by a  third-party  architect/engineer,  as  required  by  Lender.
Borrowers shall pay inspection costs on demand.  Date down endorsements to title
insurance policies and/or lien releases may be required as a condition to making
any Draw.  Lender may also require the  establishment  or  replenishment  of any
interest reserve account prior to making any Draw.

                                       5
<PAGE>

                  6.4 APPLICATION OF DRAWS. Lender shall have the right, but not
the  obligation,  to disburse Loan proceeds  directly to any unpaid  supplier of
labor, materials, equipment, services, or supplies whose claim has or may become
a lien  against the  Property,  or to require  that Draws be made in the form of
dual-payee checks or other restricted form of transfer.

                  6.5  INSPECTIONS.  Borrowers  will  cooperate  with  Lender in
arranging  for  inspections  by  representatives  of Lender  or any  third-party
consultant  retained by Lender of the progress of the construction  from time to
time, including an examination of (i) the improvements, (ii) all materials to be
used in the construction,  (iii) all Plans and Specifications that are or may be
kept at the construction  site, (iv) any contracts,  bills of sale,  statements,
receipts or vouchers in  connection  with the  improvements,  (v) all work done,
labor performed,  materials furnished in and about the Project,  (vi) all books,
contracts  and  records  with  respect  to the  Project,  and  (vii)  any  other
Construction  Documents.  Borrowers shall cooperate with Lender to enable Lender
to perform its  functions  hereunder  and will  promptly  comply  with  Lender's
requirements  and correct  any  deficiency  regarding  the  construction  of the
Project or the progress thereof.  Borrowers shall pay a reasonable and customary
inspection  fee for each  inspection  conducted  by  Lender  or any  third-party
consultant  retained by Lender.  The  inspection  fees shall be payable with the
Draw for which the inspection is conducted.

                  6.6 PROJECT  COMPLETION  AND DEADLINE  FOR DRAWS.  The Project
must be  substantially  completed within twelve (12) months from the date hereof
and Lender shall not be obligated to fund any Draw requests  which are submitted
after April 1, 2007.

         7. MANNER OF CONSTRUCTION.

                  7.1  CONFORMANCE  WITH  PLANS  AND  LAWS.  All  work  shall be
performed and the Project be constructed in a good and workmanlike  manner, free
from all  material  defects in  materials  or  workmanship.  Construction  shall
conform to the Plans and Specifications and all federal,  state, and local laws,
ordinances, regulations, and rules relating to the construction and operation of
the Property ("LAWS"),  including,  without  limitation,  all building,  zoning,
planning,   subdivision,  fire,  traffic,  safety,  health,  disability,  labor,
discrimination, environmental, air quality, wetlands, shoreline, and flood plain
laws,  ordinances,  regulations  and  rules.  The Laws shall  also  include  all
government and private covenants,  conditions and restrictions applicable to the
Property.  Prior to any Draw hereunder,  Lender may require  Borrowers to supply
evidence  satisfactory  to  Lender  that it has  complied  with  the  Plans  and
Specifications and the requirements of all Laws.

                  7.2 RIGHT OF ENTRY.  Lender or its  agents  shall at all times
have the right to enter upon the Property during the period of construction.  If
the construction work is not satisfactory to Lender, Lender shall have the right
to stop such work and order its replacement,  whether or not the  unsatisfactory
work has theretofore been incorporated in the improvements.

                  7.3 RIGHTS IN  PERSONAL  PROPERTY.  No  materials,  equipment,
fixtures,  or any other part of such  improvements  or  apparatus  to be used in
connection  therewith shall be purchased and/or installed under conditional sale
agreements or other arrangements  wherein the right is reserved or may accrue to
anyone to remove and/or to repossess any such items.

                                       6
<PAGE>

                  7.4 NO CHANGES IN THE CONSTRUCTION DOCUMENTS.  Borrowers shall
make no  changes  in the Plans  and  Specifications  or the  other  Construction
Documents  after the same have been approved by Lender  without first  obtaining
the written consent of Lender to such changes.

                  7.5   LENDER'S   RIGHT  TO  COMPLETE   CONSTRUCTION.   If  (i)
construction  is at any time  abandoned,  discontinued,  or not  carried on with
reasonable  dispatch;  (ii) the work is not properly  performed as determined by
Lender and such failure is not corrected  within fifteen (15) days from the date
of written notice from Lender (both (i) and (ii) constituting  additional Events
of Default  hereunder);  or (iii) an Event of Default otherwise occurs under the
Loan  Documents,  then  Lender may, at its option and in addition to any and all
other remedies  available to Lender under the Loan  Documents,  without  further
notice,  take possession of the Property and enter into contracts for or proceed
with  the   finishing   of  such   improvements   according  to  the  Plans  and
Specifications and pay the cost thereof.

                  7.6  RECORDED  COVENANTS.  Borrowers  shall submit to Lender a
copy of any declaration of covenants, conditions, and restrictions, or any other
restrictive  covenants or amendments  thereto  affecting the Property and obtain
Lender's approval of any such  declarations,  covenants,  or amendments prior to
recording.

                  7.7 ACTIONS  REQUIRED BY LIEN LAWS.  Borrowers  shall take all
steps  necessary  under the laws of Texas to prevent or shorten the time for the
assertion of claims or liens against property securing Borrowers' obligations to
Lender or any part  thereof  or right or  interest  appurtenant  thereto,  or of
claims against Lender or any Loans made hereunder.

                  7.8 COSTS  INCURRED  BY LENDER.  Borrowers  shall be liable to
Lender for all sums paid or incurred by Lender in finishing the  improvements or
otherwise  protecting its security hereunder,  whether the same shall be paid or
incurred pursuant to the provisions of this Section 6 or otherwise in accordance
with the Loan Documents, and all payments made or liabilities incurred by Lender
of any kind  whatsoever  shall  be paid by  Borrowers  to  Lender  upon  demand,
together with interest at the default rate under the Note to the date of payment
to Lender, and all of the foregoing sums,  including interest thereon,  shall be
deemed  advances by Lender to protect its  security,  separate and distinct from
advances of proceeds of the Loan, and shall be evidenced and secured by the Deed
of Trust and the other Loan Documents.

         8. GENERAL REPRESENTATIONS AND WARRANTIES. Borrowers, as of the date of
execution  hereof  and as of the  date of  each  request  for a Draw  hereunder,
represent and warrant to Lender that:

                  8.1 PAYMENT OF TAXES AND PROPER BOOKS AND  RECORDS.  Borrowers
have filed all required  tax returns and paid all federal and state taxes,  FICA
payments,  and similar taxes now due and owing,  and maintains  proper books and
records relating to all Borrowers' operations.

                  8.2 NO LIENS OR  ENCUMBRANCES.  There are no claims for social
security,   unemployment  compensation,   unpaid  taxes,  construction  work  or
materials, or other obligations

                                       7
<PAGE>

to or claims by any governmental body or any private person, firm,  corporation,
or other entity that are or could become liens upon the Property.

                  8.3  CONDEMNATION.  Borrowers  have not received any notice of
any  eminent  domain or  condemnation  proceeding  that in any way  affects  the
Property or the Project and, to the best of Borrowers' knowledge, no such action
or proceeding is pending or threatened.

                  8.4 IMPROVEMENT DISTRICT.  The Property is not situated within
any metropolitan,  local,  special, or other improvement  district and Borrowers
have no knowledge of any proposal  under which the Property or the Project is to
be placed in any such improvement district. Borrowers shall not consent or agree
to the inclusion of the Property in an improvement  district of any kind without
the written consent of Lender so long as any portion of the Loan remains unpaid.

                  8.5 ACCESS.  The Property has full and free access to and from
public highways,  streets,  and/or roads, and Borrowers have no knowledge of any
fact or condition that would result in the termination of such access.

                  8.6  EXISTENCE  AND  AUTHORITY.  Atlantis  is duly  organized,
validly existing,  and in good standing under the laws of Texas.  Borrowers have
taken all necessary action relating to the  authorization,  execution,  delivery
and  performance  of this  Agreement  and the  other  Loan  Documents,  and this
Agreement and all related documents,  when executed and delivered, will be valid
and enforceable against Borrowers in accordance with their terms.

                  8.7 LITIGATION.  There are no pending or threatened actions or
proceedings by or against Borrowers before any court or  administrative  agency,
federal, state, or local, that might have a material adverse effect on Borrowers
or their ability to perform under this Agreement or the related Loan Documents.

                  8.8 FINANCIAL STATEMENTS; TAXES; INDEBTEDNESS.  Borrowers have
furnished  to Lender  (i)  current  financial  statements  and (ii)  such  other
financial information as may be required hereunder,  and such information fairly
presents the financial  condition of Borrowers as of the applicable date and the
results of their operations for the applicable period, and since such date there
has  been  no  material  change  in such  Borrowers'  condition  or  operations.
Borrowers have filed all federal,  state,  and other tax returns  required to be
filed by them.  The IRS has not  asserted any  liability  for taxes in excess of
those already paid by each Borrowers and their assets are free of any federal or
state tax liens.  Neither  Borrower  has  indebtedness  in  existence  as of the
applicable  date  other  than  the  indebtedness   reflected  on  the  financial
statements referred to above, except as has been disclosed in writing to Lender.

                  8.9 COMPLIANCE WITH OTHER INSTRUMENTS. The execution, delivery
and  performance of this Agreement and all other Loan Documents will not violate
the  provisions of any applicable  law, order or regulation of any  governmental
authority  having  jurisdiction  over  Borrowers,  and will not conflict with or
result in a breach of any of the terms,  conditions  or provisions of Atlantis's
organizational documents or any other agreement or instrument to which Borrowers
are a party, or result in the creation or imposition of any lien, charge or

                                       8
<PAGE>

encumbrance  of any nature  whatsoever  upon any of the  properties or assets of
Borrowers, except for the security interests created hereunder.

                  8.10 BUSINESS  LOCATION.  Borrowers  keep all of their records
pertaining  to their  assets and  accounts at the office  located at the address
indicated  on page one of this  Agreement,  which  address is either  Borrowers'
principal place of business or the place of business from which Borrowers manage
the main part of their business  operations.  Borrowers  shall give Lender prior
written  notice of any change in such  location or the  location of any asset in
which Lender has a security interest.

                  8.11 OFAC. Neither Borrower is (or will be) a person with whom
Lender is restricted  from doing  business  under  regulations  of the Office of
Foreign Asset Control  ("OFAC") of the  Department of the Treasury of the United
States of America (including, those Persons named on OFAC's Specially Designated
and Blocked Persons list) or under any statute,  executive order (including, the
September  24,  2001   Executive   Order  Blocking   Property  and   Prohibiting
Transactions With Persons Who Commit, Threaten to Commit, or Support Terrorism),
or other governmental  action and is not and shall not engage in any dealings or
transactions  or  otherwise  be  associated  with  such  persons.  In  addition,
Borrowers  hereby agree to provide Lender with any additional  information  that
Lender may deem necessary from time to time in order to ensure  compliance  with
all applicable laws concerning money laundering and similar activities.

         9. AFFIRMATIVE COVENANTS.  While any sums remain outstanding hereunder,
Borrowers will:

                  9.1 NO LIENS. Make all necessary payments so that at all times
the Property shall be completely  free of any lien or claim of any  governmental
department  or  agency  or of any  private  person,  firm,  or  corporation  not
specifically  permitted  by Lender in writing  and that no stop notice is served
upon Lender.  Borrowers shall, upon request,  furnish full information to Lender
and permit  inspection  of its books and  records  by  Lender,  so as to satisfy
Lender of full compliance with the provisions of this paragraph.

                  9.2 LEGAL ENTITY, BUSINESS, ETC. (a) Maintain the existence of
Atlantis as a  corporation  and preserve in full force and effect all its rights
and  franchises  having a material  effect upon its business or the ownership of
its  properties;  and (b) give prompt notice to Lender of any material change in
Borrowers'  business or financial  position,  any change in any  location  where
Borrowers' accounts and/or assets are to be maintained,  the location of any new
places of  business  of  Borrowers  and the  changing or closing of any of their
existing places of business, and any change in Borrowers' name.

                  9.3  FINANCIAL  REPORTS,  INFORMATION.  Furnish  to Lender all
reasonably available information concerning the condition of Borrowers and their
current  operations,  including  balance  sheets and income  statements and such
other financial  information at such reasonable times as Lender may require, but
in no instance less often than annually.  Such information shall be certified by
a duly authorized officer or agent of Borrowers

                                       9
<PAGE>

                  9.4 INSPECTION. Permit any authorized representative of Lender
to visit Borrowers'  business location and project sites and to inspect and make
copies  of its  books,  accounts,  and  records  and to  discuss  its  business,
finances,  and  accounts  with  its  officers  and  authorized  representatives.
Borrowers  acknowledge that Lender has the right to perform collateral audits on
a regular basis.

                  9.5  PAYMENT  OF  TAXES.  Pay  all  taxes,  assessments,   and
governmental  charges  upon  Borrowers or levied  against any of its  properties
prior to the date on which  penalties will attach,  unless and to the extent the
same shall be contested in good faith and by appropriate  lawful  proceedings by
Borrowers.

                  9.6 USE OF PROCEEDS.  Use each Draw hereunder only for payment
of the Eligible  Costs on the Project for which that Draw is approved and for no
other purpose.

                  9.7   COMPLIANCE   WITH  LAWS.   Comply  with  all  applicable
requirements  (including  applicable Laws) of any governmental  authority having
jurisdiction over Borrowers, the Project, and the Property.

                  9.8  FURNISHING  NOTICES.  Provide  Lender  with copies of all
material notices  pertaining to the Project or the Property that are received by
Borrowers,  including  notices  from any  governmental  authority  or  insurance
company, within seven (7) days after such notice is received.

         10. NEGATIVE  COVENANTS.  While any sums remain outstanding  hereunder,
Borrowers will not, without Lender's prior written consent:

                  10.1   INDEBTEDNESS.   Incur   indebtedness  other  than:  (i)
indebtedness  owed to Lender  or to any  affiliate  of  Lender;  (ii)  unsecured
current indebtedness incurred in the ordinary course of business; (iii) purchase
money  secured  indebtedness  for equipment  acquired in the ordinary  course of
business;   (iv)  indebtedness  secured  by  liens  permitted  hereby;  and  (v)
indebtedness for taxes, assessments, and governmental charges permitted hereby.

                  10.2  LIENS  AND  ENCUMBRANCES.  Create or permit to exist any
mortgage,  pledge, lien, or other encumbrance with respect to any of its assets,
or acquire any property subject to or upon any conditional  sales or other title
retention contract,  except as contemplated  hereunder or otherwise agreed to by
Lender in writing,  and except for the following  permitted liens: (i) liens for
taxes,  assessments,  and governmental charges not delinquent or being contested
in good  faith;  (ii)  liens of the  kinds  arising  in the  ordinary  course of
business of  Borrowers in respect to  obligations  unrelated to the Project that
are not due or  being  contested  in good  faith;  (iii)  liens  in  respect  to
judgments  against Borrowers for which Borrowers have posted a bond or otherwise
secured  payment in a manner  acceptable  to Lender as provided in Section  10.4
below and with respect to which  Borrowers  shall, in good faith, be prosecuting
an appeal or  proceeding  for review,  and a stay of  execution  shall have been
secured;  (iv)  liens  in  respect  of  indebtedness  owed to  Lender  or to any
affiliate  of Lender;  and (v) liens that do not affect  property  securing  any
indebtedness to Lender.

                                       10
<PAGE>

                  10.3  GUARANTEES.  Guarantee or otherwise become a surety with
respect to the obligations of any other person, firm, or corporation,  except by
endorsement of negotiable  instruments  for collection in the ordinary course of
business.

                  10.4 ASSIGNMENT OR SALE OF ASSETS. Assign or sell any of their
assets,  except in the  ordinary  course of its  business  consistent  with past
practices or in connection with any indebtedness consented to by Lender.

         11. EVENTS OF DEFAULT.

                  11.1 EVENTS OF DEFAULT DEFINED.  Borrowers shall be in default
under this  Agreement  upon the  occurrence  of any one or more of the events of
default  described  below (each an "EVENT OF  DEFAULT"):  (i) failure to pay any
principal  reduction  or interest  payment when and as the same shall become due
and payable under any of the Loan Documents or under any other  indebtedness  of
Borrowers to Lender,  whether at its scheduled  payment date or otherwise;  (ii)
any  representation or warranty made now or hereafter by any Borrowers  pursuant
to this  Agreement or any other Loan  Document,  or any  statement,  report,  or
certificate provided to Lender by any Borrowers in connection therewith,  proves
to be false in any material  respect,  (iii) Borrowers fail to perform any other
term, provision, or covenant in this Agreement or in any other Loan Document and
any applicable cure period for such  non-performance has elapsed, or an Event of
Default otherwise occurs as defined under any of the other Loan Documents;  (iv)
any individual Borrower shall die or become  incapacitated;  (v) Borrowers shall
become involved in financial  difficulties as evidenced by failing  generally to
pay debts as they  become  due,  or filing a petition  under any  chapter of the
Bankruptcy  Code, or filing any answer or admission  asking for such relief,  or
making  an  assignment  for the  benefit  of  creditors,  or  consenting  to the
appointment  of a trustee or receiver for all or a major portion of such party's
assets, or the entry of an order for relief against such party as a debtor under
any chapter of the Bankruptcy  Code, or the entry of a court order  appointing a
receiver or trustee for all or a major portion of such party's  property without
its consent,  which order shall not be vacated or stayed within  forty-five (45)
days of its entry;  or (vi)  Borrowers  shall fail  within 90 days from the date
hereof to deposit pursuant to an escrow agreement  approved by Lender all of the
formulas, manufacturing procedures and specifications,  including details on all
raw material  suppliers and specifications for the raw materials relating to the
skin care products  described in the  Consulting  Agreement  between  Lender and
Borrowers.

                  11.2  REMEDIES.  Upon the  occurrence of any Event of Default,
Lender shall have no obligation to make further disbursements  hereunder and any
and  all  liabilities  of  Borrowers  to  Lender  may  be  accelerated  and  the
outstanding principal balance of the Loan become immediately due and payable, at
Lender's option, without presentment,  demand,  protest, notice of acceleration,
notice of intent to  accelerate  or notice of any kind,  all of which are hereby
expressly waived by Borrowers (unless  prohibited by applicable law). Lender may
exercise,  at its  option,  any of  the  rights  and  remedies  available  to it
hereunder  or  otherwise  available  under  law  or  equity,  including  without
limitation,  electing (i) to perform any defaulted covenant or provision to such
extent as Lender shall elect in its sole  discretion,  and/or to disburse  funds
under any Note for such  purpose  (including,  without  limitation,  payment  of
insurance  premiums,  taxes,  or  assessments),  which  amounts,  together  with
interest thereon from the disbursement date until paid at a rate per annum equal
to the rate of interest payable for the

                                       11
<PAGE>

same period applicable to the Note, shall be secured by the Construction Deed of
Trust;  (ii) to take  control of any or all  collateral;  (iii) to exercise  all
rights  and  remedies  of Lender  under  this  Agreement,  under any other  Loan
Documents, and under applicable law.

                  11.3  PAYMENT OF EXPENSES.  Borrowers  shall pay all costs and
expenses of Lender in connection  with the closing,  and funding of the Loan and
the preparation,  negotiation,  execution, and delivery of the Loan Documents or
otherwise  related  to the  Loan,,  as  well as any  amendments,  modifications,
consents, or waivers relating thereto, including, without limitation, attorneys'
fees and costs, upon demand by Lender. In addition,  Lender shall be entitled to
recover  any  reasonable  costs and  expenses  incurred in  connection  with the
preservation  of rights  under and  enforcement  of the Loan  Documents,  or the
protection  of  its  collateral  thereunder,  whether  or  not  any  lawsuit  is
commenced,  in  all  such  cases  including,   without  limitation,   reasonable
attorneys'  fees and costs,  and all such fees and costs  incurred  by Lender in
connection  with  any  bankruptcy  proceeding  affecting  the  Loan or  Lender's
security therefor in any manner.

                  11.4 UNAUTHORIZED LIENS OR ENCUMBRANCES.  If any claim of lien
is filed or recorded,  or any stop notice or other notice of lien is served upon
Lender,  in connection with any other portion of the Property,  or if a judgment
or other encumbrance is placed against any such property, it shall constitute an
Event of Default unless Borrowers,  within twenty (20) days of written notice by
Lender to Borrowers of the existence of such claim, lien or encumbrance: (i) pay
the related  judgment or claim and obtains the release and  satisfaction of such
lien, claim of lien,  judgment or encumbrance,  (ii) obtains the release of such
lien, judgment or other encumbrance by recording and/or serving a surety bond in
accordance  with  applicable  law; or (iii)  provide  Lender with a bond or such
other security or assurance as Lender, in its sole discretion,  may require,  in
an amount  equal to at least  150% of the  amount  of the  lien,  claim of lien,
judgment or other  encumbrance,  to ensure  payment of the lien,  claim of lien,
judgment or other  encumbrance  or  otherwise  protect  Lender and the  affected
property. If Borrowers do not resolve the lien, claim, stop notice, judgment, or
other  encumbrance  in a manner  satisfactory  to Lender within said twenty (20)
days,  Lender may, at its option,  disburse  proceeds  from the Loan to pay such
lien,  claim of lien,  judgment or other  encumbrance;  withhold from subsequent
Draws  an  amount  equal  to up to 150% of the  amount  of the  encumbrance;  or
exercise any other rights and remedies  available to Lender upon the  occurrence
of an Event of  Default.  Lender's  rights  under  this  paragraph  shall not be
affected by any claim of Borrowers that the lien, claim,  stop notice,  judgment
or other  encumbrance is invalid,  it being  understood that the decision of the
Lender  to pay or  withhold  is to be made by  Lender  in its  sole  discretion,
subject  only  to  Borrowers'   right  to  provide  a  bond  or  other  security
satisfactory to Lender as provided above.

                  11.5  OFFSET  RIGHTS.  Lender  may  take  from  any  funds  of
Borrowers in their possession at any time or, at the option of Lender,  from any
of the proceeds of the Loan,  any amounts that Borrowers has agreed to pay or is
liable for under any of the Loan  Documents,  but Borrowers  shall  nevertheless
remain  liable to Lender until all  obligations  provided for in this  Agreement
have been fully paid and discharged, notwithstanding Lender may not have elected
to take payment  from such funds.  In addition,  the  Borrowers  hereby grant to
Lender a contractual security interest in and hereby assign,  convey,  pledge or
transfer to Lender all Borrowers' right, title and interest in and to Borrowers'
accounts with Lender and any and all

                                       12
<PAGE>

other  obligations  of  Borrowers to Lender  including,  but not limited to, all
obligations  under that certain  Consulting  Agreement  among the parties  dated
March ___, 2006 ("Consulting  Agreement") and Borrowers  authorize Lender to the
extent  permitted by  applicable  law to charge or set off all funds against any
and all such accounts and Consulting Agreement.

                  11.6 DISCLAIMER OF LIABILITY.  The execution of this Agreement
or any of the other Loan Documents by Lender and Borrowers does not constitute a
joint  venture  and no  provision  of this  Agreement  or any of the other  Loan
Documents  is made or shall be  construed  for the  benefit of any third  party.
Borrowers  have  accepted  and hereby  accepts the sole  responsibility  for the
selection of its own contractors,  subcontractors,  and all materials, supplies,
and  equipment  to be  used  in the  development  and  construction  work at the
Property,  and Lender assumes no responsibility  to Borrowers,  any contractors,
subcontractors,  or any other person for the completion of the  improvements  or
for the quality  thereof,  nor does  Lender  assume any  responsibility  for the
application of Draws or payment of  contractors,  subcontractors,  or suppliers.
Inspection by Lender of development and construction  work is for the purpose of
protecting the security of Lender and is not to be construed as a representation
by Lender that such work will be free from faulty material or workmanship. In no
event  shall  Lender  be  liable  to  Borrowers  for   punitive,   exemplary  or
consequential damages, including, without limitation, lost profits, whatever the
nature of a breach by Lender of its  obligations  under this Agreement or any of
the Loan Documents, and Borrowers waive all claims for punitive damages.

                  11.7 REQUIRED NOTICE OF DEFAULT TO LENDER. Lender shall not be
in default under this  Agreement,  or under any other Loan  Documents,  unless a
written notice specifically setting forth the claim of Borrowers shall have been
given to Lender within three (3) months after  Borrowers  first had knowledge of
the  occurrence of the event that  Borrowers  allege gave rise to such claim and
Lender  does  not  remedy  or cure the  default,  if any,  promptly  thereafter.
Borrowers  waive any claim,  set-off or defense against Lender arising by reason
of any alleged  default by Lender as to which  Borrowers do not give such notice
as set  forth  herein.  Borrowers  acknowledge  that  such  waiver  is or may be
essential  to Lender's  ability to enforce its remedies  without  delay and that
such waiver  therefore  constitutes  a substantial  part of the bargain  between
Lender and Borrowers with regard to the Loan.

                  11.8  CONSENT  TO  LOAN   PARTICIPATION   AND/OR  TRANSFER  AS
SECURITY.  Borrowers agree and consent to Lender's sale or transfer, whether now
or  later,  of one or more  participation  interests  in the Loan to one or more
purchasers,  whether related or unrelated to Lender and/or the assignment of all
of Lender's  rights to any other party as security for Lender's  obligations  to
such third party. Lender may provide, without any limitation whatsoever,  to any
one or more potential  purchasers or  transferees,  any information or knowledge
Lender may have about  Borrowers or about any other matter relating to the Loan,
and Borrowers hereby waive any rights to privacy either may have with respect to
such matters. Borrowers also agree that the purchasers of any such participation
interests or  transferees  will be  considered  as the  absolute  owners of such
interests  in  the  Loan  and  will  have  all  the  rights  granted  under  the
participation  agreement or agreements  governing the sale of such participation
interests or other agreements with any transferees.  Borrowers further waive all
rights of offset or counterclaim  that they may have now or later against Lender
or against any purchaser of such a  participation  interest or other  transferee
and unconditionally agrees that

                                       13
<PAGE>

either  Lender or such  purchaser  or other  transferee  may enforce  Borrowers'
obligations  under the Loan  irrespective  of the failure or  insolvency  of any
holder of any interest in the Loan.  Borrowers  further agree that the purchaser
of any such  participation  interests or  transferees  may enforce its interests
irrespective  of any personal claims or defenses that Borrowers may have against
Lender.

         12. GENERAL PROVISIONS.

                  12.1  CAPTIONS,  SEVERABILITY.  Captions and headings are used
for  convenience  only and are not  intended  to  modify  or limit  the  textual
provisions of this  Agreement.  If any one or more  provisions of this Agreement
are determined to be invalid,  illegal, or unenforceable,  such unenforceability
shall not affect the other provisions thereof.

                  12.2 NOTICES.  Any notice or demand to any Borrowers  shall be
deemed  to have been  given  when  mailed,  first  class,  postage  prepaid,  or
personally  delivered to Borrowers at Borrowers'  address set forth above, or to
such  other  address  as  Borrowers  may  furnish  in writing to Lender for such
purpose.

                  12.3  GOVERNING  LAW.  This  Agreement   shall  be  construed,
interpreted,  and  enforced  in  accordance  with the laws of the state of Texas
without regard to its conflicts of law principles.

                  12.4  JURISDICTION  AND VENUE.  Each Borrower  agrees that all
actions or proceedings  arising in connection  with this Note shall be tried and
litigated  only in the state and federal  courts  located in the City of Dallas,
Texas.  Each  Borrower  hereby  waives any right he or it may have to assert the
doctrine  of forum  non  conveniens  or to  object  to venue to the  extent  any
proceeding is brought in accordance with this Paragraph 11.4 and stipulates that
the state and federal courts located in the City of Dallas,  Texas shall have in
personam jurisdiction and venue over each Borrower for the purpose of litigating
any such dispute,  controversy  or proceeding  arising out of or related to this
Note. To the extent permitted by law, service of process sufficient for personal
jurisdiction  in any action  against each  Borrower may be made by registered or
certified mail, return receipt requested, to the addresses indicated in the Loan
Agreement.  Nothing  herein  shall limit the right of Lender to maintain a legal
proceeding in the State of Texas at its option.

                  12.5 ENTIRE AGREEMENT;  AMENDMENT.  This Agreement is intended
to set forth the  entire  and final  agreement  of the  parties  concerning  the
subject matter hereof.  This Agreement may not be amended or modified  except by
written agreement of the Borrowers and Lender.

                  12.6  PUBLICITY.  If  Lender  desires,  it  may  announce  and
publicize the fact that it is providing financing, and may (at Lender's expense)
place signs on the  Property,  as long as such property  remains  subject to the
Lender's security interest.

                  12.7 EXECUTION IN COUNTERPARTS. This Agreement may be executed
in any  number of  counterparts  and by  different  parties  hereto in  separate
counterparts, each of which

                                       14
<PAGE>

when so  executed  shall be  deemed  to be an  original  and all of which  taken
together shall constitute one and the same agreement.

         Lender                          Klinger Advanced Aesthetics, Inc.

                                         By: /s/ Richard Rakowski
                                             --------------------------

         Borrower                        Atlantis Laboratories, Inc.

                                         By: /s/ Mark Potter, President
                                             ---------------------------
                                                  Mark Potter

         Borrower                        /s/ Mark Potter
                                         -------------------------------
                                         Mark Potter, individually

                                       15
<PAGE>

                                   EXHIBIT "A"

                                LEGAL DESCRIPTION

         BEING  9.000  ACRES OF LAND IN THE  W.S.  ALLEN  SURVEY,  A-2,
         MONTGOMERY  COUNTY,  TEXAS,  SAID 9.000  ACRES  BEING OUT OF A
         CERTAIN  82.10 ACRE TRACT OF LAND DEED OF WHICH IS RECORDED IN
         VOLUME 524, PAGE 263,  MONTGOMERY  COUNTY DEED  RECORDS,  SAID
         9.000 ACRES BEING DESCRIBED MORE PARITCULARY AS FOLLOWS:

         BEGINNING at a 1" galvanized  iron pipe found for the Southwest  corner
of the said 82.10 acre tract, the Northwest corner of the First Christian Church
5.7225 acre tract of land deed of which is recorded  under  County  Clerk's File
Number  8421004,  Montgomery  County  Real  Property  Records,  same  being  the
Southwest  corner of the herein described tract, and being 0.60 feet East of the
East line of McDade Estates, Section 1, a Subdivision,  map of which is recorded
in Cabinet A, Sheet 12, Montgomery County Map Records;

         THENCE N.  16(degree) 06' 00" W., along the West line of the said 82.10
acre tract, generally 0.60 feet East of the East line of said McDade Estates for
a distance of 803.59 feet to a 1/2" iron rod set for the Northwest corner of the
herein described tract;

         THENCE S.  74(degree)  20' 15E E.,  leaving  the West line of the 82.10
acre tract,  across the 82.10 acre tract for a distance of 851.68 feet to a 1/2"
iron rod set for the Northeast corner of the herein described tract, in the West
line of State Highway Loop 336,  (varying width right of way Vol. 1045, Pg. 385,
M.C.D.R.);

         THENCE S.  08(degree)  57' 38" W., along the West line of said Loop 336
for a distance of 400.00 feet to a 4" x 4" TXDOT concrete monument found for the
Southeast  corner of the herein  described tract, in the South line of the 82.10
acre tract, the North line of the said Church tract, from whence a 5/8" iron rod
found  inside a 1" iron pipe for the  Southeast  corner of the 82.10  acre tract
bears N.  74(degree) 37' 54" E., 735.81 feet, a 4" x 4" TXDOT concrete  monument
found for the Northeast  corner of the Church tract bears N.  74(degree) 37' 54"
E., 5.55 feet;

         THENCE S.  74(degree)  37' 54" W.,  leaving  the West line of Loop 336,
along the South line of the 82.10 acre tract, the North line of the Church tract
for a distance of 554.75 feet to the POINT OF BEGINNING  and  containing  in all
9.000 acres of land.

<PAGE>

                                   SCHEDULE 1

         The  construction  loan  is for the  development  of a  laboratory  and
manufacturing facility to be operated by Atlantis Laboratories,  Inc. on certain
land owned by Mark Potter in Conroe, Texas.

         It shall be a condition  precedent to the obligation of Lender to honor
Draw  requests  under  the  construction  loan that (i) a  Consulting  Agreement
between  Lender  and  Borrowers  has  been  duly  executed,  and (ii) all of the
formulas,  manufacturing  procedures,  specifications  and  details  of all  raw
material suppliers and specifications for the raw materials relating to the skin
care  products  described in the  Consulting  Agreement  have been  deposited in
escrow, and verified pursuant to an Escrow Agreement approved by Lender.

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