Document:

Exhibit 10.6

                            CORONADO INDUSTRIES, INC.

                             STOCK OPTION AGREEMENT
                      UNDER 2000 EMPLOYEE STOCK OPTION PLAN

                                                  Date of Grant: January 2, 2001

     CONSULT YOUR PERSONAL TAX ADVISOR: SUBSTANTIAL TAX CONSEQUENCES WILL RESULT
FROM YOUR EXERCISE OF THIS STOCK OPTION

     CORONADO INDUSTRIES,  INC., a Nevada corporation (the "Corporation") hereby
grants to  _________________  (the  "Optionee"),  pursuant to the 2000  Employee
Stock Option Plan of the Corporation  (the "Plan") which is incorporated  herein
by reference, an option to purchase a total of ________________ (_______) Shares
as defined in the Plan (the "Option"),  on the terms and conditions set forth in
the Plan and  hereinafter.  This  Option  shall not be  exercisable  later  than
January 1, 2011 (herein referred to as the "Expiration Date").

     1.  VESTING.  Subject to the terms and  conditions of this  Agreement,  the
Shares  subject  to this  Option  shall be fully  vested and  exercisable  as of
January 2, 2001.

     2. OPTION  PRICE.  The Option price for the ________  Shares of this Option
shall be $.135 per share. 2 3. TERMINATION. This option and all rights hereunder
to the extent such rights  shall not have been  exercised  shall  terminate  and
become null and void if the  Optionee  ceases to be a employee of the Company or
its  subsidiaries  (whether  by  resignation,  retirement,  dismissal,  death or
otherwise),  except  that (a) in the  event of the  death or  disability  of the
Optionee  while an  employee  of the  Company,  this  option  only to the extent
exercisable  at the date of death or  disability  may be  exercised  within  the
applicable  period of time and by the persons indicated in Article VI (6) of the
Plan, and (b) in the event of the  termination  of the Optionee's  employment by
the Company for any other reason,  this option only to the extent exercisable at
the date of such  termination  may be exercised prior to the expiration of three
(3) months from the date of such  termination,  and shall terminate in all other
respects; PROVIDED, HOWEVER, that in no event may this option be exercised after
the Expiration Date.

     4. EXERCISE.  This Option is exercisable  with respect to all, or from time
to time with respect to any portion, of the Shares described above which have at
that time become vested, by delivering  written notice of such exercise,  in the
form  prescribed by the Board,  to the principal  office of the Secretary of the
Corporation.  Each such notice  shall be  accompanied  by payment in full of the
Option price of such Shares.

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     5.  NON-TRANSFERABLE.  This Option shall during the Optionee's  lifetime be
exercisable  only by the  Optionee,  and  neither  this  Option  nor  any  right
thereunder  shall  be  transferable  except  by  will or  laws  of  descent  and
distribution,  or be subject to attachment,  execution or other similar process.
In the  event of any  attempt  by the  Optionee  to  alienate,  assign,  pledge,
hypothecate or otherwise dispose of the Option or any right  thereunder,  except
as provided for herein, or in the event of the levy of any attachment, execution
or similar process upon the rights or interest hereby conferred, the Corporation
may  terminate  this  Option by notice to the  Optionee  and this  Option  shall
thereupon become null and void.

     6. LEGAL RESTRICTIONS. If the sale of the Shares purchased hereunder is not
registered under the Securities Act of 1933, but an exemption is available which
requires an investment or other representation, the Optionee shall represent and
agree at the time of exercise  that the Shares being  acquired  upon  exercising
this Option are being acquired for investment,  and not with view to the sale or
distribution  thereof,  and shall make such other  representations as are deemed
necessary or appropriate by the  Corporation and its counsel.  In addition,  the
Optionee  agrees that the  following  legend may be included on the  certificate
representing the Shares:

     The shares  represented  hereby have not been  registered  under the United
States  Securities  Act of 1933, as amended,  and may not be sold,  pledged,  or
otherwise  transferred without an effective  registration thereof under such act
or an opinion of counsel, satisfactory to the company and its counsel, that such
registration is not required.

     7. CORPORATE TRANSACTIONS.

     (a) If the  Corporation  is merged  or  consolidated  into or with  another
corporation (other than by a merger or consolidation in which the Corporation is
the surviving  corporation) or the Corporation or the  Corporation's  assets are
purchased by another company in exchange for stock,  the Corporation  shall give
the  Optionee  written  notice  of  the  Corporation's  initial  or  preliminary
agreement to the transaction and the details of the transaction at least 60 days
prior to the closing of the transaction and an additional 30 days written notice
prior to the closing date of the transaction and each postponed  closing date of
the  transaction.  The then  exercisable but  unexercised  Shares granted in the
Option may be exercised by the Optionee at any time prior to the closing date of
the  transaction and such exercised  Shares shall then be deemed  outstanding at
the close of the transaction.

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     8. TAX CONSEQUENCES.

     This Stock Option is not intended as an "Incentive  Stock --- Option" under
Section 422A of the Internal  Revenue Code of 1986, as amended.  Substantial tax
consequences  are involved in the decision to exercise  this Option.  Therefore,
the  Optionee  should  consult  with  and seek  advice  from  his  personal  tax
consultant prior to exercising this Option.

     9. MISCELLANEOUS.

     (a) Neither the granting of this Option nor the exercise  thereof  shall be
construed  as  conferring  upon  the  Optionee  any  right  to  continue  in the
engagement of the Corporation or any of its subsidiaries, or as interfering with
or  restricting  in any way the  right  of the  Corporation  to  terminate  such
engagement at any time.

     (b) Neither the Optionee, nor any person entitled to exercise his rights in
the event of his  death,  shall  have any of the  rights of a  stockholder  with
respect  to the  Shares  subject  to this  Option,  except  after  such date the
Optionee  or such person has been  issued the Shares by the  Corporation  or its
agent.

     (c) The Corporation is relieved from any liability for the  non-issuance or
non-transfer  or any delay in the issuance or transfer of any Shares  subject to
this Option which results from the inability of the Corporation to obtain, or in
any delay in  obtaining,  from each  regulatory  body  having  jurisdiction  all
requisite   authority  to  issue  or  transfer  Shares  of  the  Corporation  in
satisfaction of this Option if counsel for the Corporation  deems such authority
necessary for the lawful issuance or transfer of any such shares.

     (d) No  Shares  acquired  by  exercise  of  this  Option  shall  be sold or
otherwise  disposed of in  violation of any federal or state  securities  law or
regulation in the Untied States.

     (e) This Option shall be exercised in accordance  with such  administrative
regulations  as the  Corporation's  Board  may  from  time  to time  adopt.  All
decisions of the Board upon any  legitimate  question  arising under the Plan or
under this Stock  Option  Agreement  shall be  conclusive  and binding  upon the
Optionee and all other persons, if determined in good faith.

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     IN WITNESS WHEREOF, this Stock Option Agreement has been executed as of the
day and year first written above.

                                        CORONADO INDUSTRIES, INC.

                                        By:
                                           -------------------------------------
                                           Gary R. Smith, President

ATTEST:

-----------------------------------
G. Richard Smith, Secretary

                                       4Exhibit 10.1

                                 LOAN AGREEMENT
                                     between
                 American Home Capital Corporation ("BORROWER")
                                       and
               EnerGCorp., Inc., a Florida corporation ("LENDER")
                                   dated as of
                                December 31, 2001

                                    RECITALS

     1. Borrower has requested  that Lender  advance money in a total  aggregate
amount not to exceed the sum of $300,000.00 (the "LOAN").

     2.  Lender  will  advance  money to  Borrower,  subject  to full and strict
compliance with and satisfaction of the terms and conditions of this Agreement.

     3. Words and terms used in this  Agreement,  and as it may be amended  from
time to time,  shall have the meanings  indicated for them, and shall be equally
applicable to both the singular and plural forms of the defined terms.

1. PRIOR AGREEMENTS

     1.1. PRIOR AGREEMENTS SUPERSEDED. This Agreement supersedes in its entirety
all prior  agreements  between Lender and Borrower,  including any loan proposal
letter from Lender to Borrower, except that any existing security agreements and
financing  statements  previously  given by Borrower  to Lender or made  between
Borrower and Lender which  provide  security  for any existing  indebtedness  of
Borrower  shall  remain in effect to the extent the same grant liens or security
interests (but not to the extent the same provide for loans or contain covenants
inconsistent  with or additional to those contained  herein),  and the liens and
security  interests granted or perfected thereby shall secure the "NOTE" and the
"OBLIGATIONS SECURED" hereafter described.

     1.2. PRIOR CREDIT AGREEMENT  ACKNOWLEDGMENTS.  Borrower  acknowledges  with
respect to all amounts  owing to Lender under any prior credit  agreements  that
Borrower has no offset,  defense or counterclaim with respect thereto,  no claim
or defense in abatement or reduction thereof, nor any other claim against Lender
or with respect to any document  forming part of the  transaction  in respect of
which  the  prior  credit  agreements  were  made or  forming  part of any other
transaction  under which Borrower is indebted to Lender.  Borrower  acknowledges
that all interest  imposed  under all prior credit  agreements  through the date
hereof,  and all fees and other charges that have been collected from or imposed
upon  Borrower  with respect to all loans  evidenced by prior credit  agreements
were and are agreed to,  and were  properly  computed  and  collected,  and that
Lender has fully  performed all  obligations  that it may have had or now has to
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Borrower,  and that  Lender has no  obligation  to make any  additional  loan or
extension  of  credit to or for the  benefit  of  Borrower  under  prior  credit
agreements.

2. THE GENERAL TERMS OF THE LOAN

     2.1. THE LOAN.  Borrower  agrees to borrow from Lender,  and subject to the
terms and  conditions  of this  Agreement,  Lender  agrees to loan to or for the
benefit of  Borrower,  a sum not to exceed  Three  Hundred  Thousand  and 00/100
Dollars  ($300,000.00).  The Loan shall be  evidenced  by and bear  interest  as
provided in a promissory note in form and substance  acceptable to Lender, dated
as of the date hereof,  and duly  executed and  delivered to Lender by Borrower,
and any note or notes taken wholly or partially in renewal or extension  thereof
or  substitution  or  replacement  therefor  (the  "NOTE").  The  Loan  shall be
disbursed in accordance with this Agreement.

     2.2. PREPAYMENT. The Loan may be prepaid at any time in any amount, without
premium or penalty.  Prepayments of installments shall be applied in the inverse
order of their maturities.

     2.3.  DISBURSEMENT  OF  THE  LOAN.  Upon  satisfaction  of  all  conditions
precedent provided in this Agreement, and upon receipt of request from Borrower,
and so long as Borrower  shall not then be in Default  hereunder,  Lender  shall
disburse to itself such sums as are payable to it by Borrower and shall disburse
the balance of the Loan by check payable as Borrower directs.

3. COLLATERAL SECURITY

     3.1. GRANT OF SECURITY  INTEREST.  To secure the payment and performance of
the  Obligations  Secured (as hereafter  defined),  Borrower  hereby creates and
grants to Lender a first priority security  interest in the Collateral  (defined
and  described  on  SCHEDULE  1  hereto).  As used in this  Agreement,  the term
"OBLIGATIONS  Secured" means: (i) the indebtedness  evidenced by this Agreement,
the  Note  and the  Loan  Documents;  (ii) any and all  advances  by  Lender  to
Borrower,  and any and all debts,  obligations and liabilities owed to Lender by
Borrower, now or hereafter existing,  incurred or created,  whether voluntary or
involuntary,  due or not due,  secured or  unsecured,  absolute  or  contingent,
liquidated or unliquidated,  determined or undetermined,  and regardless whether
Borrower may be liable  individually or jointly with others or whether  recovery
upon any such  indebtedness  may be or  hereafter  become  barred  or  otherwise
unenforceable,  and  all  extensions,  renewals  or  replacements  thereof,  but
excluding any indebtedness incurred primarily for personal,  family or household
purposes; and, (iii) all sums and expenses,  including attorney's fees, advanced
or incurred by Lender for or in connection with the Collateral or any obligation
of Borrower  undertaken  herein or in any other agreement with Lender. It is the
intention of the parties hereto that the  Obligations  Secured shall  constitute
one  indebtedness,  and shall constitute one general  obligation,  including all
whole or partial extensions, renewals or replacements thereof, and including any
obligation  to perform or forbear from any action as well as any  obligation  to
pay money.

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<PAGE>
     3.2. RIGHTS AND DUTIES WITH RESPECT TO THE COLLATERAL. Lender shall have no
duty  as to the  collection  or  protection  of the  Collateral,  or any  income
therefrom, nor as to the preservation of rights against prior parties nor as the
preservation of any rights  pertaining  thereto beyond the safe custody thereof.
Lender may exercise its rights with respect to the Collateral  without resorting
or regard to other  Collateral or sources of  reimbursement  for the Obligations
Secured.

     3.3. POWER OF ATTORNEY.  All assignments and grants of liens to Lender made
or  contemplated  by Section 3  include,  INTER  ALIA,  all  powers,  rights and
privileges  that  are  now or  hereafter  possessed  by  Borrower  in and to the
Collateral.  Borrower  hereby  irrevocably  appoints  Lender its true and lawful
attorney,  with power of  substitution,  in its name or in the name of Lender or
otherwise,  for the use and  benefit of Lender,  but at the cost and  expense of
Borrower without notice to Borrower or its successors,  to exercise such powers,
rights and privileges if a default shall exist hereunder.

4. CONDITIONS PRECEDENT

     4.1.  CONDITIONS  PRECEDENT  TO LENDER'S  OBLIGATIONS.  Lender shall not be
obligated  to  disburse  all or any  portion of the Loan unless on or before the
time of each  disbursement  of the Loan all legal matters  incident to such Loan
shall  be  satisfactory  to  Lender  and its  counsel,  and  Lender  shall be in
possession  of or be satisfied as to each of the matters set forth in Section 4,
as well as satisfaction of other conditions specified elsewhere herein or in the
Loan Documents which are applicable to each advance.

     4.2. ACCURACY OF INFORMATION, REPRESENTATIONS AND WARRANTIES. Borrower must
satisfy Lender that no  information,  document,  exhibit or report  furnished to
Lender by Borrower in connection  with the  negotiation or execution of the Loan
Documents or in connection  with  Borrower's  application  for the Loan,  and no
report,  statement or information required to be furnished by Borrower to Lender
under  the  Loan  Documents,   has  contained  or  will  contain,  any  material
misstatement  of fact or omitted  or will omit to state a  material  fact or any
fact necessary to make any statement contained therein not misleading.  Borrower
must satisfy  Lender that  Borrower  knows of no fact which is not  disclosed in
writing to Lender  which may in the future  have a  material  adverse  effect on
Borrower.

     4.3. SHARE CONSOLIDATION;  CORPORATE MATTERS.  Lender must receive evidence
that Borrower has completed a consolidation of its outstanding  shares of common
stock on a basis not  greater  than 10 to 1; such that after the  consolidation,
the shares being issued to Lender  pursuant to Section 2.2  constitute  not less
than 94% of the issued and outstanding shares of Borrower.  In addition,  Lender
must receive  evidence that Borrower has (a) resolved to Lender's  satisfaction,
the outstanding warrants held by Northstar Partners; (b) reduced the size of its
Board of Directors to five members; and (c) sold on terms satisfactory to Lender
its interest in MCCA, Inc. and TCS Financial,  Inc.  (provided that a sale which
nets  Borrower  not less than  $100,000  in cash and notes  receivable  shall be
deemed satisfactory to Lender).

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<PAGE>
     4.4. FINANCIAL  CONDITION.  Borrower must satisfy Lender that there has not
been any material  adverse change in the financial  condition of Borrower or any
other Person  whose  financial  condition  is reflected in any of the  financial
statements furnished to Lender, except those changes contemplated by Section 4.3
hereof.

     4.5. LOAN  DOCUMENTS.  Lender must receive the LOAN  DOCUMENTS  (i.e.  this
Agreement,  the  Note,  and all  other  documents  or  instruments  executed  in
connection   herewith  or  therewith  or  hereafter  executed  in  modification,
amendment or replacement hereof or thereof) and such other documents required by
this  Agreement  or any of the Loan  Documents  as in  Lender's  opinion  may be
necessary  and/or  appropriate  to  evidence  or  effectuate  the intent of this
Agreement or any Loan Document. All such documents must be in form and substance
satisfactory to and approved by Lender,  duly and validly executed and delivered
by Borrower or such other Person as may be  appropriate,  and in recordable form
where appropriate.

     4.6. NO ADVERSE CHANGES IN COLLATERAL.  Lender must be satisfied that there
have been no material adverse changes in the Collateral.

     4.7. NO DEFAULT.  There shall exist no  condition,  event or act that would
constitute  an event of  Default  or  Potential  Default  under  any of the Loan
Documents  and no  condition,  event or act which,  as a result of the giving of
notice or the lapse of time,  or both,  as  specified in this  Agreement,  would
constitute such an event of Default.

     4.8.  REIMBURSEMENT  OF  EXPENSES.  Borrower  shall  pay  Lender  all  fees
(including  attorneys'  fees)  and  expenses  incurred  in  connection  with the
negotiation and preparation of the Loan Documents and the closing and funding of
the Loan.

     4.9.  THIRD-PARTY  APPROVALS.  Borrower must satisfy Lender that any Person
that is  required  pursuant to any  instrument,  contract,  commitment  or other
agreement of any kind,  or pursuant to any law or  regulation to assent to or in
any  manner  approve  of any of the acts or  transactions  contemplated  by this
Agreement (or any of the other Loan Documents), or the means of effecting any of
the same,  shall have given such  assent or  approval,  and shall have been duly
authorized so to do.

5. REPRESENTATIONS AND WARRANTIES

     5.1.  REPRESENTATIONS  AND WARRANTIES  GENERALLY.  Borrower  represents and
warrants  to  Lender  as of the  date  hereof,  and  shall  be  deemed  to  have
represented and warranted to Lender,  as of the time of each disbursement of the
Loan,  each of the matters  described in this  Section.  Each  advance  extended
hereafter  constitutes a representation  and warranty by Borrower to Lender that
all conditions specified herein have been met as of that time.

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<PAGE>
     5.2. ACCURACY OF INFORMATION AND REPRESENTATIONS. No information, document,
exhibit  or report  furnished  to  Lender by  Borrower  in  connection  with the
negotiation  or execution  of the Loan  Documents,  and no report,  statement or
information  required  to be  furnished  by  Borrower  to Lender  under the Loan
Documents,  has contained or will contain, any material  misstatement of fact or
omitted or will omit to state a material fact or any fact  necessary to make any
statement  contained therein not misleading.  Borrower knows of no fact which is
not  disclosed  in  writing to Lender  which may in the  future  have a material
adverse effect on Borrower.

     5.3.  ADVERSE  RESTRICTIONS.  Borrower  is not a party  to or  bound by any
contract  or  instrument  or  subject  to any  restriction  (including  laws and
governmental  regulations)  that does or may materially and adversely affect its
business,  property,  assets,  operations or condition or its ability to perform
under the Loan Documents.

     5.4.  AUTHORIZATION  AND  VALIDITY.  Borrower has all  requisite  power and
authority  to enter  into this  Agreement  and the other  Loan  Documents  to be
entered into by it, and to perform all actions  required or  contemplated by any
provision  contained in any of the Loan Documents.  The  consummation of all the
transactions  contemplated hereby create legal, valid and binding obligations on
Borrower.

     5.5.  BORROWER'S  STATUS.  Borrower  is  and  will  be a  corporation  duly
incorporated,  validly  existing  and in good  standing  under  the  laws of its
jurisdiction of incorporation, and is and will be duly qualified and admitted as
a foreign  corporation in good standing with all requisite  authority to conduct
its  business and own its  property in each  jurisdiction  where such conduct of
business  or  ownership  of  property  makes such  qualification  and  admission
necessary  and where the  failure  to so qualify  would have a material  adverse
effect on its business, financial condition or operations.

     5.6.  BROKER'S OR FINDER'S  FEE.  Borrower has not employed or retained any
broker or finder, or incurred  liability for any brokerage fees,  commissions or
finder's fees in connection with the Loan.

     5.7.  COMPLIANCE  WITH LAWS AND  CONTRACTS.  The  execution and delivery by
Borrower of the Loan Documents,  the  consummation of the  transactions  therein
contemplated,  and compliance with the provisions thereof,  will not violate any
law,  rule,  regulation,  order,  writ,  judgment,  injunction,  decree or award
binding on Borrower or the provisions of any indenture,  instrument or agreement
to  which  Borrower  is a party or is  subject,  or by  which  Borrower,  or its
property,  is bound,  or conflict  with or constitute a Default  thereunder,  or
result in the creation or imposition of any Lien.

     5.8. CONSENTS. No consent,  license,  permit, approval or authorization of,
exemption by, notice or report to, registration,  filing or declaration with, or
other act by or in  respect  of,  any  Person  (including,  without  limitation,
Governmental  Authorities  and  creditors of Borrower) is required in connection
with the execution, delivery and performance by Borrower of any Loan Document or

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the Obligations  Secured,  or with respect to the  enforceability or validity of
any  Loan  Document,   other  than  filings  or  recordings  with   Governmental
Authorities  required  solely for the purpose of perfecting  Lender's  liens and
security interests.

     5.9  DEBT.  SCHEDULE  5 is a  complete  and  correct  list  of  all  credit
agreements  in  respect  of  which  Borrower  is  in  any  manner   directly  or
contingently  obligated,  including indentures,  bonds (both corporate and those
issued by bonding  companies,  such as surety or  performance  bonds),  purchase
agreements,   guaranties,  capital  leases,  agreements  with  investors  in  or
purchasers  of  securities  issued  by  Borrower,   stock  requiring   mandatory
redemption,  indemnity  agreements,  and  agreements  and  arrangements  for the
issuance of letters of credit or for acceptance financing.

     5.10. DEFAULTS.  No Default or Potential Default (as hereafter defined) has
occurred and is continuing.

     5.11.  ENCUMBRANCES.  None of the  assets of  Borrower  is  subject  to any
mortgage,  pledge,  title  retention  lien,  or other  encumbrance  or  security
interest, except for current taxes not delinquent, and such mortgages,  security
interests, and encumbrances as disclosed on SCHEDULE 5.

     5.12. ERISA COMPLIANCE.  Borrower does not maintain any employee benefit or
other plan subject to ERISA.

     5.13. FINANCIAL STATEMENTS. Each of the financial statements (including the
footnotes and opinions thereto) of Borrower provided to Lender is true,  correct
and complete,  and presents  fairly the  financial  condition and the results of
operations  of the Person  that it purports to reflect at the date(s) or for the
period(s)  set forth in such  financial  statement.  There have been no material
adverse changes in the condition,  affairs or prospects,  financial or other, of
any Person  whose  financial  condition  is  reflected  in any of the  aforesaid
financial statements since the date of such financial statement, and Borrower is
unaware of any facts or circumstances which might give rise to any such material
adverse change. There are no liabilities of Borrower, fixed or contingent, which
are material but are not reflected in the  financial  statements or in the notes
thereto.

     5.14.  INSOLVENCY.  Borrower is not "insolvent"  within the meaning of that
term as defined in the Federal Bankruptcy Code.

     5.15.  LITIGATION  AND  JUDGMENTS.  There  are  no  outstanding  or  unpaid
judgments or  arbitration  awards  against  Borrower,  and no actions,  suits or
proceedings  (in a  court  of law or  otherwise)  pending  or,  to the  best  of
Borrower's  knowledge  and belief,  threatened  against  Borrower  (and,  to the
knowledge of Borrower,  there is no basis for any such suit or  proceeding).  No
judgment,  award,  action,  suit or  proceeding  (whether  in a court  of law or
otherwise,  and whether pending or threatened) materially affects the ability of
Borrower to perform any of its obligations under the Loan Documents.

                                        6
<PAGE>
     5.16.  SUBSIDIARIES  AND  OWNERSHIP OF STOCK.  Set forth in SCHEDULE 6 is a
complete  and  accurate  list  of the  subsidiaries  of  Borrower,  showing  the
jurisdiction of  incorporation  of each and showing the percentage of Borrower's
ownership  of  the  outstanding  stock  of  each  such  subsidiary.  All  of the
outstanding  capital stock of each subsidiary has been validly issued,  is fully
paid and nonassessable, and is owned by Borrower free and clear of all liens.

     5.17.  SURVIVAL OF REPRESENTATIONS  AND WARRANTS.  All  representations and
warranties made by Borrower under or in connection with this Agreement or in any
other document delivered by Borrower to Lender in connection with this Agreement
shall survive the making of the Loan and issuance and delivery of this Agreement
to  Lender,  notwithstanding  any  investigation  made by Lender or on  Lender's
behalf.  All  statements  contained in any  certificate  or financial  statement
delivered  by  Borrower  to  Lender  under  this  Agreement   shall   constitute
representations and warranties made by Borrower  hereunder.  The representations
and  warranties  made by  Borrower  shall be and remain true at all times in all
material  respects  with the same  effect  as  though  the  representations  and
warranties had been made at any and all times during the term of this Agreement.

     5.18.  TAXES.  Borrower has properly  prepared and filed all United  States
federal tax returns  and all other tax returns  which are  required to be filed,
and has paid all taxes,  interest and  penalties due pursuant to said returns or
pursuant to any  assessment  received  by  Borrower.  Borrower is not  presently
involved in any dispute concerning taxes with any taxing authority, and Borrower
has not received any unpaid  assessment  for federal or state income taxes.  The
charges,  accruals and reserves on the books of Borrower in respect of any taxes
or other governmental charges are adequate. Borrower has not executed and is not
bound by the  execution  by another  Person of any  presently  effective  waiver
extending the period of the applicable statute of limitations for the payment of
federal income taxes.

     5.19.  TITLE TO ASSETS AND  PROPERTIES.  Borrower  has good and  marketable
title  to all  of its  properties  and  assets  as  disclosed  in the  financial
statements  provided to Lender,  except for such assets as have been disposed of
since the date of such  statements in the ordinary  course of business or as are
no longer used or useful in the conduct of its business.

     5.20. USE OF PROCEEDS. The Loan is a business loan and the proceeds thereof
shall be used  solely for  commercial  or  business  purposes  or for  carrying,
reducing or retiring  any debt  incurred for such  purpose.  Borrower is not now
engaged  principally or as one of its important  activities,  in the business of
extending  credit for the  purposes of  purchasing  or carrying any margin stock
(within the meaning of  Regulation  U of the Board of  Governors  of the Federal
Reserve System).  No part of the proceeds of the Loan hereunder has been or will
be used to purchase or carry any such margin stock or to extend credit to others
for the purpose of purchasing or carrying any such margin stock or for carrying,

                                        7
<PAGE>
reducing or retiring any debt incurred for such purpose. If requested by Lender,
Borrower will furnish to Lender a statement in conformity with the  requirements
of Federal  Reserve  Form U-1. No part of the  proceeds of the Loan have been or
will be used for any purpose  that  violates or which is  inconsistent  with the
provisions of Regulations G, U or X of said Board of Governors.

6. COVENANTS

     6.1. COVENANTS GENERALLY.  During the term of this Agreement, and until the
Obligations  Secured are paid in full,  unless Lender shall otherwise consent in
writing, Borrower covenants and agrees as to the matters described in Section 6.

     6.2. ACCESS TO PREMISES AND RECORDS.  At all reasonable  times and as often
as Lender may request,  Borrower shall permit and cause each of its subsidiaries
to permit authorized representatives designated by Lender to: (a) have access to
the premises and  properties of Borrower and each  subsidiary and to the records
relating to the operations of Borrower and each  subsidiary;  (b) make copies of
or  excerpts  from such  records;  and (c)  discuss the  affairs,  finances  and
accounts of Borrower and each of its subsidiaries  with and be advised as to the
same by the chief executive and financial  officers  thereof,  all to the extent
not inconsistent with applicable law and as shall be relevant to the performance
or observance of the terms,  covenants and  conditions of this  Agreement or the
financial condition of Borrower or any subsidiary.

     6.3.  ADVERSE  CONDITIONS.  Borrower  will not  permit an event to occur or
condition to exist which has or would have a materially  adverse effect upon the
financial condition of Borrower, as determined in the sole discretion of Lender.

     6.4.  COMPLIANCE WITH LAWS. Borrower will comply with, conform to and obey,
and cause each subsidiary to comply with, conform to and obey all material laws,
ordinances,  rules,  regulations and all other legal requirements  applicable to
Borrower.

     6.5. CONDUCT OF BUSINESS. Borrower will continue, and cause each subsidiary
to continue to engage in an efficient and economical manner in a business of the
same general type as conducted by it on the date of this Agreement.

     6.6.  DEBT.  Borrower  will not  incur or  suffer  to exist  any  direct or
contingent  indebtedness  or other  obligations  for borrowed  money,  including
without  limitation,  obligations  representing  the deferred  purchase price of
property  or  services,  capitalized  lease  obligations,  mandatory  redemption
obligations relating to the capital stock of any Person, and guaranties.

     6.7.  FINANCIAL  REPORTING.  Borrower will timely  provide Lender with such
financial  information  as  Lender  may  request  during  the term of the  Loan,
including  without  limitation,  periodic  financial  statements,  tax  returns,
receivables  and payables  agings,  and such other  financial data as Lender may
request from time to time.

                                        8
<PAGE>
     6.8.  INSURANCE.  Borrower  will  keep its  insurable  property  adequately
insured at all times by financially sound and reputable insurers,  against fire,
flood, extended casualty and against such other risks as are customarily insured
against by companies in a similar  business,  as a prudent owner and operator of
the  properties  and  business of Borrower  would  maintain.  Such policy  shall
include a loss payable clause listing Lender as an additional loss payee,  shall
provide that Lender must be given at least thirty (30) days prior written notice
of any cancellation or termination of such policy, and must provide coverage for
Lender notwithstanding any act or neglect of Borrower.  Borrower will maintain a
policy of comprehensive general liability insurance (the "LIABILITY  INSURANCE")
with limits of liability of not less than $One Million combined single limit for
bodily  injury and property  damage.  Such policy shall contain a broad form CGL
endorsement (including products and completed operations).

     6.9.  LICENSES.  Borrower shall obtain  promptly and keep in full force and
effect all licenses, permits, authorizations, rights and franchises necessary to
its  business,  and shall not engage in any action or do  anything  which  would
impair any such license,  permit,  authorization,  right or franchise.  Borrower
shall  promptly  advise  Lender of any  order,  application,  suit,  hearing  or
proceeding which might affect its rights in any respect in any license,  permit,
authorization, right or franchise. Borrower shall use its best efforts to defend
against such order, application, suit, hearing or proceedings. Without the prior
written  consent  of  Lender,  Borrower  shall  not enter  into any  proceeding,
agreement or arrangement for the sale, assignment,  transfer or hypothecation of
any franchise, permit, license, right, or authorization now or hereafter held by
Borrower.

     6.10.  LIENS.  Borrower  will not  create,  incur,  or  suffer to exist any
security interest,  mortgage,  pledge, lien, claim, charge,  encumbrance,  title
retention  agreement,  lessor's  interest  under a financing  lease or analogous
instrument,  in, of or on property, or allow any financing statement to be filed
or recorded  describing  any of its assets,  except  those  otherwise  expressly
permitted or created hereunder or approved by Lender in advance.

     6.11. LOANS TO OTHERS.  Borrower will not make any loans or advances to any
Person  other  than in the  normal  and  ordinary  course  of its  business  now
conducted.

     6.12.  MAINTENANCE  OF PROPERTIES AND  COLLATERAL.  Borrower will maintain,
keep, and preserve,  and cause each subsidiary to maintain,  keep, and preserve,
all of its  properties  (tangible  and  intangible)  necessary  or useful in the
proper  conduct of its business in good working  order and  condition,  ordinary
wear and tear  excepted.  Borrower  will not allow the  Collateral to suffer any
material  loss or  depreciation  in value  other than  losses  fully  covered by
insurance,  the proceeds of which are paid to Lender, and depreciation resulting
from reasonable  ordinary wear and use.  Borrower will notify Lender promptly of
any event causing  material loss or  depreciation in the value of the Collateral
and the amount and nature of such loss or depreciation.

                                        9
<PAGE>
     6.13. MAINTENANCE OF RECORDS. Borrower will keep, and cause each subsidiary
to keep,  adequate records and books of account,  in which complete entries will
be made in accordance with general accepted accounting  principles  consistently
applied, reflecting all financial transactions of Borrower and its subsidiaries.

     6.14. MERGER AND SALE OF ASSETS.  Except as otherwise  contemplated hereby,
Borrower shall not: (i) merge or consolidate (whether in one transaction or in a
series of transactions) with or into any corporation or other entity; (ii) sell,
lease, transfer or otherwise dispose of all or a substantial part of its assets;
(iii) enter into a dissolution or liquidation; (iv) sell, transfer, or otherwise
dispose of, any real or personal property to any person and thereafter  directly
or  indirectly  lease  back the same or similar  property;  (v)  acquire  all or
substantially  all of the assets or the  business of any  Person,  or permit any
subsidiary  to do so,  except  that any  subsidiary  may merge into or  transfer
assets to Borrower  and any  subsidiary  may merge into or  consolidate  with or
transfer assets to any other subsidiary of Borrower. Borrower agrees that Lender
shall be conclusively deemed to be reasonable in conditioning any consent to the
foregoing  upon,  inter alia, the entity with or into which Borrower shall merge
or  consolidate  or to which  Borrower'S  stock or other  assets is  transferred
agreeing to guarantee  or assume the Loan by executing a guaranty or  assumption
in form and substance acceptable to Lender.

     6.15.  NOTICE OF NAME CHANGE.  Borrower will notify Lender of any change in
Borrower's  name or any name  Borrower  begins to do  business  under or name it
assumes within thirty (30) days after the date of such change.

     6.16. NOTICE OF DEFAULT AND ADVERSE CONDITIONS.  Borrower shall give prompt
(but in no event later than the first  Business Day after  becoming aware of the
following)  written  notice to Lender of: (i) the  occurrence  of any Default or
Potential Default, or (ii) any fact,  circumstance or development,  financial or
otherwise,  which might materially  adversely  affect its business,  properties,
affairs,  prospects or condition (financial or other) or the ability of Borrower
to perform hereunder or under the other Loan Documents.

     6.17. STOCK OF SUBSIDIARY  Borrower will not permit any subsidiary to issue
any additional shares of its capital stock.

     6.18.  TAXES.  Borrower  will pay when due,  and  before  any  interest  or
penalties shall accrue thereon, all federal, state and local taxes, assessments,
charges, levies or indebtedness, provided that Borrower shall not be required to
pay any such tax,  assessment,  charge or claim,  the  payment of which is being
contested in good faith and by appropriate proceedings.

     6.19.  TRADE  ACCOUNTS.  Borrower will pay and cause each subsidiary to pay
all trade  accounts in  accordance  with industry  practices  (unless and to the
extent that any of such  obligations or indebtedness are being contested in good
faith and of which  Borrower has given notice to Lender of the existence of such
dispute).

                                       10
<PAGE>
7. DEFAULTS

     7.1. EVENTS OF DEFAULT.  In addition to the Events of Default listed in the
other Loan  Documents,  the  occurrence of any one or more of the  conditions or
events  (whether or not within the control of  Borrower)  described in SECTION 7
shall  constitute a "Default".  As used in this  Agreement  "POTENTIAL  DEFAULT"
means a  condition  or event  which,  but for the lapse of time or the giving of
notice, or both, would constitute a Default.

     7.2.  BANKRUPTCY  OR  INSOLVENCY.  It is a  Default  if  Borrower:  (i)  is
adjudicated  a bankrupt or debtor,  or an order for relief under the  Bankruptcy
Code  (Title  11 of the  United  States  Code) is  entered  naming  Borrower  as
"debtor";  (ii) fails to pay, or admits in writing  its  inability  to pay,  its
debts generally as they become due; (iii) makes an assignment for the benefit of
creditors;  (iv)  applies  for,  seeks,  consents  to,  or  acquiesces  in,  the
appointment of a receiver, custodian, trustee (interim or otherwise),  examiner,
liquidator or similar  official for it or any substantial  part of its property;
(v) institutes any  proceeding  seeking to adjudicate it a, debtor,  bankrupt or
insolvent,  file a petition  commencing any case seeking  protection,  relief or
reorganization,  under the Bankruptcy  Code (Title 11 of the United States Code)
or institutes  any  proceeding  seeking  dissolution,  winding up,  liquidation,
reorganization,  arrangement, adjustment or composition of it or its debts under
any law  relating  to  bankruptcy,  insolvency  or  reorganization  or relief of
debtors  or fails to file an  answer  or other  pleading  denying  the  material
allegations  of any such  proceeding  filed against it; (vi) takes any corporate
action to  authorize  or effect any of the  foregoing  actions set forth in this
Section;  or, (vii) fails to contest in good faith any appointment or proceeding
described in this Section.

     7.3. DEFAULT IN PERFORMANCE OR OTHER BREACH.  It is a Default if any of the
Obligations  Secured  or any  term  or  covenant  hereof  or of the  other  Loan
Documents  is not  performed  or paid as  agreed,  or there  is a breach  of any
warranty or representation  contained herein or in the other Loan Documents,  or
Borrower fails to pay and discharge any indebtedness, liability or obligation to
any  Person  when and as due  (except  in the case of a good  faith  dispute  as
expressly  permitted  herein),  or by reason  of a  Default,  the  holder of any
indebtedness of Borrower  becomes  entitled to accelerate the stated maturity of
such indebtedness. Any breach or Default by Borrower of any term or condition of
any Loan Document shall constitute a Default under all the other Loan Documents.

     7.4. SECURITY DOCUMENT.  It is a Default if any of the Loan Documents shall
at any time after its execution  and delivery and for any reason  cease:  (i) to
create a valid and perfected  priority  security interest in and to the property
purported to be subject to such Security  Document;  or (ii) to be in full force
and effect or shall be declared null and void, or the validity or enforceability
thereof  shall be  contested  by  Borrower,  or  Borrower  shall deny it has any
further liability or obligation under the Loan Document,  or Borrower shall fail
to perform any of its obligations under the Loan Document.

                                       11
<PAGE>
8. REMEDIES

     8.1. LENDER'S REMEDIES UPON DEFAULT.  Subject to such limitations as may be
imposed by  applicable  federal  bankruptcy  and  reorganization  law,  upon the
occurrence  of any event of Default,  and in addition to all rights and remedies
provided  for under the other Loan  Documents,  Lender shall have all rights and
remedies  provided to it by law,  hereunder,  or any other  document under which
Borrower  shall be obligated to Lender and,  without  limiting the generality of
the foregoing, Lender may do any one or more acts described in this Section, and
in any order it deems appropriate.

     8.2. ACCELERATION AND INCREASED RATE OF INTEREST.  Without notice or demand
except as expressly  provided herein,  Lender shall have the right to accelerate
maturity of the Obligations Secured, and require immediate payment of the entire
principal sum owing,  together with all accrued  interest,  advances,  costs and
Lender's  attorneys'  fees.  During the  existence of a Default  (whether or not
Lender shall have  accelerated the stated maturity of the Obligations  Secured),
interest  under the Note shall accrue at the  post-Default  rate provided in the
Note.

     8.3. ADVANCES TO PROTECT LENDER'S  INTERESTS.  Without notice to or consent
from Borrower,  at any time when a Default shall exist  hereunder,  Lender shall
have the right but not the obligation,  at any time to advance to any Person any
sum which Lender in its sole  discretion  deems necessary to protect or preserve
the Collateral or Lender's  assignment of or security interest in the Collateral
(or the  priority  thereof),  or to cure any event of Default  which  shall then
exist.  Each such advance  shall be secured by the  Collateral  and, at Lender's
election,  shall either be reimbursed to it by Borrower  immediately upon demand
or added to the Loan  balance  and bear  interest  at the rate  applicable  upon
Default  under the  Note.  It is  understood  and  agreed  that  nothing  herein
contained shall obligate  Lender to make any such advance,  nor shall the making
of one or more  such  advances  constitute  an  agreement  by Lender to make any
further advance or be deemed a waiver of any Default by Borrower under the terms
hereof or of any other Loan Document.

     8.4.  CEASE  FUNDING.  Lender  shall  have the  right to cease  making  any
disbursements hereunder or pursuant to any of the other Loan Documents.

     8.5.  FORECLOSURE.  Lender shall have the right to foreclose  the liens and
security interests created hereby or pursuant to any other Loan Document, either
by  judicial  or  nonjudicial  foreclosure,  and notify the  obligors or account
debtors on the Collateral to render all further  payment or performance  thereon
directly to Lender,  and  directly  collect  the same.  In  connection  with the
foregoing, Lender may prosecute, compromise, or settle claims and sell, lease or
otherwise dispose of the Collateral,  applying all proceeds received  therefrom,
less the costs and expenses  incurred in  connection  therewith,  to  Borrower's
obligations to Lender secured  thereby in such order and priority of application
as  Lender  may  elect.  For the  purpose  of  taking  possession  of any of the
Collateral,  Lender may enter upon and remove the Collateral  from such place as
the Collateral may then be located or may render the Collateral unusable, and/or

                                       12
<PAGE>
may sell or  otherwise  dispose of the  Collateral  on such  premises or at such
other place as Lender  shall  determine.  Borrower  hereby  grants to Lender and
potential  purchasers  and  bidders a right of access to the  premises or places
where the  Collateral  may then be located  for the  purpose of  inspecting  the
Collateral  and conducting a sale or other  disposition of the same.  Lender may
also require  Borrower,  at Borrower's  expense,  to assemble the Collateral and
deliver it to Lender at such place or places as Lender may designate which is or
are  reasonably  convenient to Lender and Borrower and Borrower  agrees to do so
when so required by Lender.  With or without removal of the  Collateral,  Lender
may operate or consume  the  Collateral  in efforts to continue or  productively
employ the  Collateral  for such period or periods as Lender  deems  appropriate
under the circumstances.  Lender may sell or otherwise dispose of the Collateral
at  public or  private  sale or  disposition,  upon  such  terms as  Lender  may
determine,  and with or without  having the  Collateral  at the place of sale or
disposition.  Lender may bid upon and purchase the Collateral at any public sale
thereof. From the proceeds of any such sale, disposition,  lease or operation of
the Collateral, Lender shall deduct all expenses of retaking, storing, operating
and selling or otherwise  disposing  of the  Collateral,  including  the cost of
maintenance  and  repairs  and any  other  reasonable  costs  of  preparing  the
Collateral  for sale,  lease or  disposition,  and Lender's  counsels'  fees and
expenses.  The  balance of such  proceeds  shall be  applied to the  Obligations
Secured in such order and priority of  application  as Lender may elect.  Should
the  disposition of the  Collateral  (other than by retention by Lender) fail to
satisfy all amounts  secured by this  Agreement,  Borrower  shall pay Lender the
amount of any deficiency.  Any assumption of management or collection  hereunder
or the application of monies received as a result thereof or otherwise shall not
be deemed in any manner to cure or waive any Default hereunder.  Notwithstanding
Lender's right to notify the obligors of or account  debtors on the  Collateral,
this  Agreement  is  intended  to and shall  serve as notice to all  obligors of
Borrower and to any and all other  persons  whomsoever as an  authorization  and
direction  to them to pay over all  obligations  and  other  items  constituting
Collateral hereunder to Lender on demand therefor, and an assurance to them that
they shall be entitled to rely solely on the advice and  instructions  of Lender
as to whether Default exists and as to all matters whatsoever  pertaining to the
payment of their  obligations,  and that they shall thus be fully  protected  in
making any payments to Lender.  If written notice  pertaining to the disposition
of the Collateral by Lender after Default is required by law,  notice  delivered
or posted  as  provided  in  Section  9.15  (Notices)  hereof at least  five (5)
calendar days before the date of a proposed public disposition or the date after
which a private  disposition may occur shall  conclusively be deemed  reasonable
notice;  provided,  however, that nothing herein shall prevent the sale or other
disposition  upon shorter  notice or without  notice of the  Collateral if it is
perishable or if it threatens to decline speedily in value.

     8.6.  OTHER  REMEDIES.  Lender  shall have the right to exercise  any other
right, privilege, or remedy available to Lender under any of the Loan Documents,
under any other  agreement or instrument or as may be provided by applicable law
or in equity.  Lender  shall  have the right to  enforce  any one or more of the
remedies  provided  hereunder  or by law or in  equity  either  successively  or
concurrently,  and any such action by Lender  shall not be deemed an election of
remedies or otherwise  prevent  Lender from  pursuing any further  remedy it may
have hereunder or at law or in equity.

                                       13
<PAGE>
     8.7.  SPECIFIC  PERFORMANCE.  Lender  shall  have the  right  to  institute
appropriate  proceedings to  specifically  enforce  performance of the terms and
conditions of all or any of the Loan Documents.

9. GENERAL PROVISIONS

     9.1.  ACCOUNTING  TERMS.  All financial  covenants and terms referred to in
this  Agreement  shall be  determined  in  accordance  with  generally  accepted
accounting  principles  consistent  with  those  used  in  preparing  Borrower's
financial statements.

     9.2. AGREEMENT CONTROLS. The Loan Documents shall be deemed to include this
Agreement.  In the event of a conflict  between  any of the  provisions  of this
Agreement and any provisions of the other Loan Documents, the provisions of this
Agreement shall control.

     9.3. ASSIGNABILITY. Borrower shall not assign this Agreement or any part of
any advance to be made hereunder.  The rights of Lender under this Agreement are
assignable in part or in whole,  and any assignee of Lender shall succeed to and
be possessed of the rights of Lender  hereunder to the extent of the  assignment
made, including the right to make advances to Borrower.

     9.4. BINDING EFFECT.  This Agreement shall be binding upon and inure to the
benefit of the parties hereto and their respective successors and assigns.

     9.5.  LENDER'S  CONSENT  AND  APPROVAL.  In any  instance  hereunder  where
Lender's approval or consent is required or the exercise of Lender's judgment is
required, the granting or denial of such approval or consent and the exercise of
such judgment  shall be within the sole  discretion of Lender,  and Lender shall
not,  for any reason or to any extent,  be  required  to grant such  approval or
consent or exercise such  judgment in any  particular  manner  regardless of the
reasonableness of either the request or Lender's judgment.

     9.6. COSTS AND EXPENSES.  Borrower shall pay Lender upon demand any and all
costs,  expenses and fees  (including  reasonable  attorneys'  fees) incurred in
connection  with the Loan,  including  without  limitation,  those  incurred  in
enforcing  or  attempting  to  recover  payment  of the  amounts  due  under the
Obligations Secured,  including negotiating,  documenting and otherwise pursuing
or  consummating  modifications,  extensions,  compositions,  renewals  or other
similar transactions  pertaining to this Agreement or the Note,  irrespective of
the  existence of an event of Default,  and including  costs,  expenses and fees
incurred before, after or irrespective of whether suit is commenced,  and in the
event suit is brought to enforce payment hereof,  such costs,  expenses and fees
and all other issues in such suit shall be determined by a court sitting without
a jury.

                                       14
<PAGE>
     9.7.  COUNTERPARTS.  This  Agreement  may  be  executed  in any  number  of
counterparts,  each of which, when executed and delivered, shall be an original,
but all of which shall together constitute one and the same instrument.

     9.8.  GENERAL  INDEMNIFICATION.  Borrower hereby  indemnifies  Lender,  its
employees,  agents and  officers  from and against  any and all loss,  expenses,
charges,  fees  (including  attorneys'  fees) and  liability  and agrees to hold
Lender and its employees, agents and officers harmless from any and all damages,
costs,  expenses,  claims,  demands,  and  liabilities  which may be asserted or
alleged in connection  with or arising out of the Loan,  the  administration  or
enforcement  of the Loan  Documents  or the exercise of any right under the Loan
Documents (including,  without limitation,  in connection with or as a result of
any sale,  use,  operation,  lease,  disposition  or  consumption  of any of the
Collateral  as  long as such  is  done  in a  commercially  reasonable  manner),
whenever asserted,  and for all reasonable expenses (including  attorneys' fees)
and all costs of  compromise  or  settlement  which may be incurred by Lender on
account of or arising out of or in  connection  with any such  claim,  demand or
obligation.   The  foregoing  indemnity  shall  extend  to  claims,  demands  or
obligations, and expenses relating thereto and costs of compromise or settlement
thereof,  but not to those  resulting  from the  negligence or misconduct of any
indemnitee.  In the event  that any  action or  proceeding  is  brought  against
Lender,  its  employees,  agents  or  officers  arising  out  of the  Loan,  the
administration or enforcement of the Loan Documents or the exercise of any right
under the Loan Documents,  Borrower shall,  upon notice from Lender,  resist and
defend such action or proceeding on behalf of Lender, its employees,  agents and
officers as applicable;  provided that failure of such party to give such notice
shall not relieve Borrower from any of its obligations under this Section unless
such failure prejudices defense of such action or proceeding by Borrower. At its
own expense, an indemnified party may employ separate counsel and participate in
the defense. If employment of separate counsel is required because of a conflict
of  interest  between  Borrower  and  the  indemnified   party  or  between  the
indemnified  parties,  or the  failure of  Borrower  after  receipt of notice to
assume the defense,  then the indemnified parties may employ separate counsel at
Borrower's expense.  Borrower shall not be liable for any settlement without its
consent  unless  Borrower  shall have failed to perform  any of its  obligations
under this Section.

     9.9.  GOVERNING  LAW. The Loan  Documents are executed and delivered in the
State of  Arizona,  and the laws of the  State of  Arizona  shall  govern  their
interpretation and enforcement.

     9.10. GOVERNMENTAL REGULATION.  Anything contained in this Agreement to the
contrary  notwithstanding,  Lender shall not be  obligated  to extend  credit to
Borrower in an amount in violation of any limitation or prohibition  provided by
any applicable statute or regulation.

     9.11. HEADINGS AND MISCELLANEOUS DEFINITIONS.  All sections and descriptive
headings of subsections in this Agreement are inserted for convenience only, and
shall not affect the construction or interpretation hereof.  "BUSINESS DAY" is a

                                       15
<PAGE>
day other than a Saturday,  Sunday or a public or bank holiday under federal law
or the laws of the State of  Arizona.  "GOVERNMENTAL  AUTHORITY"  means any body
politic, including without limitation the United States of America, the State of
Arizona,  and  any  other  state,  county,   parish,  city,  town,  township  or
municipality,  and any subpart thereof or any person(s) or entity deriving their
authority  from  any  such  body  politic,   including  without  limitation  any
department,  agency,  commission,  board,  division,  bureau or  office,  or any
subpart thereof,  of any body politic.  "PERSON" means any corporation,  natural
person, firm, joint venture,  partnership,  trust, unincorporated  organization,
government or any department or agency of any governmental authority.  "SECTION"
means  a  numbered  section  of  this  Agreement,  unless  another  document  is
specifically referenced.

     9.12.  MODIFICATION  AND WAIVER.  No provision of this  Agreement  shall be
amended,  waived or modified  except by an instrument  in writing  signed by the
parties hereto.

     9.13.  NO AGENCY OR  PARTNERSHIP  RELATIONSHIP.  Borrower  understands  and
agrees that Lender is not its agent, representative or partner.

     9.14. NO OTHER PARTIES TO BENEFIT. The Loan Documents are made for the sole
benefit of Borrower and Lender and their respective  successors and assigns, and
no other  person or entity is  intended  to or shall have any rights or benefits
hereunder, whether as third-party beneficiary or otherwise.

     9.15. NOTICES. All notices and other communications  provided for hereunder
shall  be  in  writing  (including  telegraphic,  telecopy  or  other  facsimile
communication)  and  mailed,   telegraphed,   telexed,  cabled,  telecopied  (or
communicated by other means of facsimile  transmission) or delivered (by hand or
by courier  service),  to the parties at their  respective  addresses  set forth
below or at such other address as shall be designated by such party in a written
notice to the other parties.  All such notices and  communications  shall,  when
mailed  by  certified  mail,  telegraphed,  telexed,  cabled or  telecopied,  be
effective upon the earlier to occur of actual receipt or three (3) Business Days
after deposit in the mail (postage  prepaid),  or upon delivery to the telegraph
company, or upon confirmation by telex answerback, or upon delivery to the cable
company  or  upon   confirmation   at  the  established   confirmation   number,
respectively.

     To Borrower as follows:  American Home Capital Corporation
                              10525 Vista Sorrento Pkwy. #200
                              San Diego, CA 92121

     To Lender as follows:    EnerGCorp., Inc.
                              1530 W. 10th Place
                              Tempe, AZ  85281
                              Attn: Peter J. Workum

                                       16
<PAGE>
     9.16.  OTHER  DOCUMENTS.  Borrower hereby agrees to provide Lender with all
other documents reasonably required by Lender to give effect to this Agreement.

     9.17. RATE DETERMINATION. Any determination by Lender of a rate of interest
hereunder  shall,  in the absence of manifest  error,  be conclusive and binding
upon  Borrower  for the  purposes of this  Agreement  and prima  facie  evidence
thereof in any court of law.

     9.18.  RATE OF INTEREST.  Notwithstanding  anything herein or in any of the
other Loan Documents to the contrary, if any charge or fee for which Borrower is
or becomes obligated in connection with the Loan Documents  constitutes interest
and is not  otherwise  stated as a rate,  such  charge or fee shall be deemed an
additional rate of interest which Borrower agrees to as authorized by A.R.S. ss.
44-1201.A,  computed  by  dividing  the  amount  of  such  charge  or fee by the
principal amount of the Note. If, from any circumstances whatsoever, fulfillment
of any provision hereof or of any of the Loan Documents, at the time performance
of such provision shall be due, shall involve transcending the limit of validity
prescribed by law which a court of competent  jurisdiction  may deem  applicable
thereto, then IPSO FACTO, the obligation to be fulfilled shall be reduced to the
limit of such validity, and if, from any circumstance, Lender shall ever receive
as interest an amount  which would exceed the highest  lawful rate,  such amount
which  would be  excessive  interest  shall be applied to the  reduction  of the
unpaid principal balance due under the Loan Documents as of the date such amount
is  received  or  deemed to be  received  by Lender  and not to the  payment  of
interest.  This provision  shall control every other provision of all agreements
between Borrower and Lender.  However,  in the event an amount  determined to be
excessive  interest  is  applied  against  the  unpaid  principal  balance,  and
thereafter the rate of interest  accruing on the Loan decreases,  the Loan shall
in fact, accrue interest at the then highest lawful rate until such time that an
amount  accrues  equal to the amount of excessive  interest  previously  applied
against principal.  Notwithstanding the foregoing,  if the provisions of any law
or regulation of the United States or any agency or instrumentality  thereof, as
amended,  which validly supersedes any restriction of the State of Arizona would
permit  Lender to  charge or  receive a rate of  interest  with  respect  to the
indebtedness  evidenced  by the Loan  Documents in excess of the maximum rate of
interest (if any) permitted to be charged or received by Lender under applicable
law of the State of Arizona, the less restrictive  provisions of any such United
States  law or  regulation  shall  apply in  determining  the  rate of  interest
permitted to be charged or received.

     9.19. RELIANCE. All covenants,  agreements,  representations and warranties
made herein or in any document  delivered in support of the Loan shall be deemed
to have been  relied on by Lender in  making  the Loan,  and shall  survive  the
execution  and delivery of any of the Loan  Documents  and any  disbursement  or
advance of funds made pursuant to the Loan Documents.

     9.20.  RIGHT TO  APPEAR  IN  LITIGATION.  Lender  shall  have the  right to
commence,  appear in or defend any action or proceeding  which  Lender,  in good
faith,  believes may affect the rights or duties of any of the parties hereunder

                                       17
<PAGE>
or in connection herewith or in and to the Collateral. If no Default shall exist
hereunder,  Lender  shall give notice to Borrower of its intent to exercise  its
rights  hereunder,  and, if Borrower  fails,  within five (5) business  days, to
diligently  commence,  appear in or defend any action or proceeding which Lender
sets forth in its notice to  Borrower  then Lender may  commence  such action or
appear in or defend any action or proceeding  then pending.  In the event Lender
exercises its rights  hereunder,  then Borrower  agrees to pay all necessary and
reasonable expenses incurred by Lender in connection therewith  (including,  but
not limited to, reasonable attorneys' fees).

     9.21. SEVERABILITY;  INTEGRATION;  TIME OF THE ESSENCE.  Inapplicability or
unenforceability  of any provision of this  Agreement  shall not limit or impair
the  operation or validity of any other  provision of this  Agreement.  The Loan
Documents  constitute the entire  agreement  between the parties with respect to
the subject matter  hereof.  Each of the Loan Documents is intended to represent
the mutual  intent of the  parties  thereto  and no rule of strict  construction
shall be applied against any party. Time is of the essence hereof.

     9.22. TAXES. Any taxes (excluding income taxes) payable or ruled payable by
federal, state or local authority in respect of the Loan Documents shall be paid
by Borrower, together with interest and penalties, if any.

     9.23.  WAIVERS  GENERALLY.  Lender  shall not be deemed to have  waived any
rights  upon or under the  Obligations  Secured or the  Collateral  unless  such
waiver be in writing  and signed by Lender.  No delay or omission on the part of
Lender in  exercising  any right shall  operate as a waiver or such right or any
other right. A waiver on any one occasion shall not be construed as a bar to the
exercise of any right on any future  occasion  all rights and remedies of Lender
as to the Obligations  Secured or the Collateral  whether evidenced hereby or by
any  other  instrument  or  papers  shall  be  cumulative  and may be  exercised
singularly  or  concurrently.  The  waiver by Lender of any breach or Default by
Borrower under any of the terms of any of the Loan Documents shall not be deemed
to be a waiver of any subsequent breach or Default on the part of Borrower under
the same or any other of the Loan Documents.

                                       18
<PAGE>
     9.24.  WAIVER OF JURY TRIAL.  Borrower HEREBY KNOWINGLY,  VOLUNTARILY,  AND
INTENTIONALLY,  WAIVES  ANY RIGHTS IT MAY HAVE TO REQUIRE A TRIAL BY JURY IN ANY
COURT ACTION PERTAINING TO THIS AGREEMENT.

EnerGCorp., Inc.                        American Home Capital Corporation

By: /s/ Peter J. Workum                 By: /s/ Grant E. Sardachuk
    --------------------------------       ------------------------------------
    Peter J. Workum, President             Its: President and Director

                                        By: /s/ Cheryl B. Dodds
                                           ------------------------------------
                                           Its: Chief Financial Officer

                                       19
<PAGE>
                                   SCHEDULE 1

                                   COLLATERAL

     1. A first  priority,  perfected  security  interest  or lien in all or any
portion, as in each case may be appropriate, of:

          (i) All of Borrower's accounts, instruments, chattel paper and general
intangibles (as such terms are defined in the Arizona Uniform  Commercial Code),
and including any right to payment acquired by Borrower pursuant to the exercise
of warrants  for the stock of  Borrower,  patents,  copyrights,  trademarks  and
designs;

          (ii) All of Borrower's inventory,  goods, merchandise,  materials, raw
materials,  goods in process,  finished goods,  packaging and shipping materials
and other tangible personal property, whether now or hereafter in existence, now
owned or  hereafter  acquired by Borrower and held for sale or lease or to be or
actually  furnished  under  contracts  for  service or  consumed  in  Borrower's
business,  whether  or not  such  inventory  be in the  constructive  or  actual
possession or custody of Borrower;

          (iii) All of Borrower's machinery, equipment, appliances, apparatuses,
tools,  machine  tools,  supplies,  materials,  furniture,  fixtures,  goods and
chattels of every kind and wherever located,  now or hereafter owned or acquired
by Borrower;

          (v) All of Borrower's  personal  property  coming into the hands of or
under the  control  of  Lender  in any  manner,  including  securities  held by,
deposited  with,  assigned or pledged to Lender,  and all  interest,  dividends,
stock rights,  stock  dividends,  benefits and other property or rights to which
Borrower may become entitled by virtue of the ownership thereof;

          (vii) all additions,  accessories and accessions to, and  replacements
of, the foregoing;

          (viii) all proceeds of insurance  covering  the  foregoing,  including
returned  or  unearned  premiums  becoming  due on any  insurance  covering  the
foregoing;

          (x) all property substituted or exchanged for the foregoing;

          (xi) all proceeds of the foregoing; and

          (xii) all books and records pertaining to the foregoing.
<PAGE>
                                   SCHEDULE 5

                                      DEBT

*    Office Lease - San Diego
     TCS Mortgage and Wateridge Industrial Partnership, dtd. 3/25/96
     With Tenant Estoppel Certificate, dtd. 9/26/96 (Assigned lease to new
     ownership:  CarrAmerica Corp)

*    Office Lease - Las Vegas
     TCS Mortgage and Bertges, dtd. 6/27/00

*    Amended and Restated Warehouse Loan and Security Agreement
     TCS Mortgage and The Provident Bank, dtd. 7/12/99

*    Equipment Lease Agreement
     TCS Mortgage and Scripps Bank, dtd. 1/11/99

*    Equipment Lease Agreement
     TCS Mortgage and Scripps Bank, dtd. 6/4/99
<PAGE>
                                   SCHEDULE 6

                                  SUBSIDIARIES

    Date                                                              Percentage
Incorporated                 Company Name                TIN #         Ownership
------------                 ------------                -----         ---------
   2/1/84           TCS Mortgage, Inc.                 33-0046478         100%
   2/1/84           TCS Real Estate Services, Inc.     33-0046477         100%
   2/1/84           TCS Insurance Services, Inc.       33-0041621         100%

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