Document:

SECURITY AGREEMENT

     M&A West, Inc. of 1519 Edgewood,  Liberty, Texas 77575,  hereinafter called
"Debtor",  and Realtec Ltd.,  __________________,  hereinafter  called  "Secured
Party", agree as follows:

Section I.      Creation of Security Interest.

         1.1 Debtor  hereby  pledges,  grants a security  interest in mortgages,
assigns,  transfers,  delivers,,  sets over and confirms  unto Secured Party the
Collateral  described in Section II of this Agreement to secure  performance and
payment of all debts, obligations and liabilities of every kind and character of
Debtor  now or  hereafter  existing  in  writing  in  favor  of  Secured  Party,
including,  but not limited to, (1) that certain  promissory note (the "Note" or
"Promissory  Note") in the principal  amount of $250,000  dated January 25, 2001
attached  hereto as Exhibit  "A";  (2) future  advances to be  evidenced by like
notes to be made by Secured Party to Debtor at Secured Party's  Option;  and (3)
all  liabilities  of Debtor to Secured  Party now  existing  or later  incurred,
matured or unmatured,  direct or contingent, and any renewals and extensions of,
and substitutions  for, such  liabilities.  All such indebtedness is hereinafter
sometimes  called  the  "secured  indebtedness"  or  the  "indebtedness  secured
hereby."

Section II.     Collateral.

         2.1 The Collateral of this Security  Agreement  consists of One Million
Five Hundred Thousand  (1,500,000)  shares of Digital Bridge,  Inc.  ("Digital")
duly issued to Debtor,  and all other property  previously,  presently or in the
future deposited with Vanderkam & Sanders, as escrow agent for Secured Party, by
Debtor.  Upon  the  execution  of  this  Agreement,  Debtor  will  have a  share
certificate  delivered to Secured Party as well as an  irrevocable  stock power.
The  Collateral  includes  also,  without  limitation,  all  property  this  day
delivered to and deposited with Secured Party, and all money and property of the
Debtor  heretofore  delivered  to or to come  into the  possession,  custody  or
control of Secured  Party in any manner or for any purpose  whatever  during the
existence of this Agreement,  and whether held in a general or special  account,
or deposited for safekeeping or otherwise,  together with all dividends (cash or
otherwise),  rights to receive  dividends,  stock  dividends,  dividends paid in
stock,  distributions upon redemption or liquidation,  distributions as a result
of split-ups,  recapitalizations or rearrangements,  all stock rights, rights to
subscribe,  voting rights, rights to receive securities, and all new securities;
and all other property which Debtor may hereafter  become entitled to receive on
account of such securities or other  property,  and in the event Debtor receives
any such property,  Debtor will immediately  deliver same to Secured Party to be
held by Secured Party in the same manner as the property originally deposited as
Collateral.  The  Collateral of this Agreement also includes (i) the proceeds of
any and all property  described above and (ii) any and all cash dividends of and
from any and all property described above.

Section III.    Payment Obligations of Debtor.

         3.1 Debtor shall pay to Secured  Party any sum or sums due or which may
become due pursuant to any instrument or agreement  evidencing any  indebtedness
or obligation of Debtor to Secured Party,  now or hereafter  executed by Debtor,
in  accordance  with the terms of such  instrument or agreement and the terms of
this Agreement.

         3.2  Debtor  shall pay to  Secured  Party on demand  all  expenses  and
expenditures,  including  reasonable  attorneys'  fees and other legal  expenses
incurred or paid by Secured Party in exercising  or  protecting  its  interests,
rights and remedies under this Security  Agreement,  plus interest  thereon from
date of expenditure until paid at the maximum nonusurious rate from time to time
permitted by applicable law (the "Highest Lawful Rate").

         3.3  Debtor  shall  pay the  entire  unpaid  indebtedness  of Debtor to
Secured  Party,  whether  created or  incurred  pursuant  to this  Agreement  or
otherwise, upon Debtor's default under this Agreement.

                                      -1-
<PAGE>

Section IV.     Representations and Warranties.

         4.1    Debtor represents and warrants that:

(a)      All information, reports, statements and other data furnished by Debtor
         to Secured Party prior to,  contemporaneously with or subsequent to the
         execution  of  this  Security  Agreement  or  in  connection  with  the
         indebtedness secured hereby are and shall be true, correct and complete
         and do not  and  shall  not  omit to  state  any  fact or  circumstance
         necessary to make the information contained therein not misleading.

(b)      All investment  securities  and any like property  delivered to Secured
         Party as  Collateral  are  genuine,  duly and  validly  authorized  and
         issued,  fully  paid  and  nonassessable,  free of all  liens,  claims,
         demands,  equities or other security interests, and are hereby duly and
         validly  pledged and  hypothecated  to Secured Party in accordance with
         law.

(c)      Debtor owns the  Collateral and has the right to pledge the same and to
         transfer any interest therein;  all consents required for the pledge of
         the Collateral  herein  provided have been obtained;  the Collateral is
         free and clear from all security interests and encumbrances  except the
         security  interest  evidenced hereby;  there is no financing  statement
         covering the  Collateral or its proceeds on file in any public  office;
         and so long as the  indebtedness  secured  hereby  remains  unpaid  the
         Debtor  will  warrant  and defend the title to the  Collateral  and its
         proceeds  against  the claims and  demands  of all  persons  whomsoever
         claiming or to claim the same or any party thereof.

(d)      The  execution,  delivery and  performance  by Debtor of this Agreement
         does not and will not  contravene  or violate any provision of any law,
         rule,   regulation,   order,  writ,   judgment,   injunction,   decree,
         determination  or award presently in effect and applicable to Debtor or
         result in a breach of or  constitute  a default  (with or  without  the
         giving of notice or the lapse of time or both) under any  indenture  or
         loan,  credit or other agreement to which Debtor is a party or by which
         Debtor or any of Debtor's property may be bound or affected.

(e)      This Agreement  constitutes the legal,  valid and binding obligation of
         Debtor enforceable against Debtor in accordance with its terms.

(f)      No authorization, consent, approval, license, order or exemption of, or
         filing or  registration  with,  any court or  governmental  department,
         commission,  board,  bureau,  agency or  instrumentality,  domestic  or
         foreign,  is or will be  necessary  to the valid  execution  deliver or
         performance by Debtor of this Agreement or to the enforcement hereof by
         Secured Party.

(g)      No  representation  or warranty  contained herein or made in connection
         with the indebtedness  secured hereby, and no certificate,  schedule or
         other  document  furnished  in  connection  herewith,  contains or will
         contain,  at the time so made or furnished,  a misstatement of material
         fact or omits or will  omit to state a  material  fact  required  to be
         stated  therein in order to make the statements  contained  therein not
         misleading.

Section V.      Covenants.

         5.1 Debtor  covenants and agrees during the term of this Agreement with
Secured Party as follows:

(a)      Debtor  shall  furnish  to Secured  Party  such stock  powers and other
         instruments  as  may  be  required  by  Secured  Party  to  assure  the
         transferability of the Collateral when and as often as may be requested
         by Secured Party.

(b)      Debtor  will  cause  to be paid  prior to  delinquency  all  taxes  and
         assessments  heretofore  or  hereafter  levied or assessed  against the
         Collateral, or any part thereof, or against the Secured Party for or on
         account of the  indebtedness  secured hereby or the interest created by
         this  Agreement,  and will furnish Secured Party with receipts or other
         satisfactory  evidence showing payment of such taxes and assessments at
         least ten (10) days prior to the applicable default date therefore.

                                       -2-
<PAGE>

(c)  If the  validity or priority of this  Agreement  or of any rights,  titles,
     security  interests or other interests created or evidenced hereby shall be
     attacked,  endangered  or  questioned,  or if  any  legal  proceedings  are
     instituted  with respect  thereto,  Debtor will give prompt  written notice
     thereof to Secured  Party  and,  at  Debtor's  own cost and  expense,  will
     diligently  endeavor to cure any legitimate defect that may be developed or
     claimed,  and will take all  necessary  and proper steps for the defense of
     such legal proceedings, and Secured Party (whether or not named as a party)
     is hereby  authorized and empowered to take such additional steps as in its
     judgment and  discretion  may be necessary or proper for the defense of any
     such legal  proceedings  or the  protection  of the validity or priority of
     this  Agreement  and the  rights,  titles,  security  interests  and  other
     interest created or evidenced hereby, and all expenses so incurred of every
     kind and character shall be a demand  obligation  owing by Debtor and shall
     bear interest  from date of  expenditure  until paid at the Highest  Lawful
     Rate.

(d)  Debtor will, on request of Secured Party,  (i) promptly correct any obvious
     clerical defect,  error or omission which may be discovered in the contents
     of  this  Agreement  or in any  other  instrument  executed  in  connection
     herewith or in the  execution  or  acknowledgment  thereof;  (ii)  execute,
     acknowledge   and  deliver  to  Secured  Party  such  further   instruments
     (including  without  limitation  further  security  agreements,   financing
     statements and continuation  statements) and do such further acts as may be
     necessary,  desirable or proper to carry out more  effectively the purposes
     of this Agreement and such other instruments and to subject to the security
     interests hereof and thereof any property  intended by the terms hereof and
     thereof  to be covered  hereby and  thereby,  including  specifically,  but
     without limitation, any renewals, additions, substitutions, replacements or
     appurtenances  to the then Collateral;  and (iii) execute,  acknowledge and
     deliver to Secured Party any document or instrument (including specifically
     any financing  statement)  deemed advisable by Secured Party to protect the
     security  interest  hereunder  against  the  rights  or  interest  of third
     persons, and Debtor will pay all costs connected with any of the foregoing.

(e)  Notwithstanding  the security  interest in proceeds granted herein,  Debtor
     will not sell, exchange, lend, assign, transfer or otherwise dispose of all
     or any part of the Collateral or any interest therein, or permit any of the
     foregoing, without the prior written consent of the Secured Party.

(f)  Debtor will pay all filing fees  incurred  by Secured  Party in  connection
     with the secured  indebtedness,  and will  reimburse  Secured Party for all
     such expenses  incurred by it. Debtor shall pay all expenses and attorney's
     fees and legal  expenses,  incurred or expended in connection  with Secured
     Party's  exercise of any of its rights and  remedies  hereunder  or Secured
     Party's protection of the Collateral and its security interest therein. Any
     amount to be paid  hereunder  by Debtor to Secured  Party shall be a demand
     obligation  owing by Debtor to Secured  Party and shall bear  interest from
     date of expenditure until paid at the Highest Lawful Rate.

(g)  Debtor shall  account  fully and  faithfully  for and, if Secured  Party so
     elects,  shall  promptly pay or turn over to Secured  Party the proceeds in
     whatever  form  received  from  disposition  in  any  manner  of any of the
     Collateral,  whether  the  indebtedness  secured  hereby  is mature or not.
     Debtor shall at all times keep the Collateral and its proceeds separate and
     distinct from other property of Debtor and shall keep accurate and complete
     records of the Collateral and its proceeds.

(h)  Debtor shall furnish  Secured Party all such  information  as Secured Party
     may reasonably request with respect to the Collateral.

     5.2 Debtor  agrees that,  if Debtor fails to perform any act or to take any
action  which  hereunder  Debtor is required  to perform or take,  or to pay any
money which hereunder Debtor is required to pay, Secured Party, in Debtor's name
or in its own name,  may but shall not be  obligated  to  perform or cause to be
performed  such act or take such action or pay such money,  and any  expenses so
incurred by Secured Party,  and any money so paid by Secured  Party,  shall be a
demand obligation owing by Debtor to Secured Party and Secured Party upon making
such  payment,  shall  be  subrogated  to  all  of the  rights  of  the  person,
corporation or other entity receiving such payment. Any amounts due and owing by
Debtor to Secured Party pursuant to this Agreement  shall bear interest from the
date such amount is expended by Secured  Party until paid at the Highest  Lawful
Rate and shall be a part of the  secured  indebtedness  and shall be  secured by
this Agreement and by any other instrument securing the secured indebtedness.

                                      -3-
<PAGE>

Section VI.     Events of Default.

         6.1 Debtor shall be in default under this Agreement upon the occurrence
of any Event of Default (as such term is defined in the Promissory  Note) or the
happening  of any of the  following  events or  conditions  (hereinafter  called
"Event of Default"):

(a)      Debtor  shall fail to pay any  principal  of  or  interest  on the Note
         or any other  indebtedness  secured hereby as and when due; or

(b)      Debtor shall fail to pay at maturity,  or within any applicable  period
         of grace, any principal of or interest on any other obligation or shall
         fail to observe or perform any term, covenant or agreement contained in
         any  agreement or obligation by which Debtor is bound for such a period
         of time as would  accelerate,  or would  permit the  holder  thereof to
         accelerate the maturity thereof; or

(c)      Debtor shall be determined by a court of competent  jurisdiction  to be
         in  default  under  or in  violation  of any law,  statute,  ordinance,
         decree,   requirement,   order,   judgment,   rule  or  regulation  (or
         interpretation  of any of  the  foregoing)  of  the  United  States  of
         America, any State of the United States or any political subdivision of
         any of the foregoing or of any agency, department,  commission,  board,
         bureau or court  having  jurisdiction  over Debtor,  or its  respective
         assets or property; or

(d)      Any  representation  or warranty made in connection  with the execution
         and delivery of this Agreement,  the Note  evidencing the  indebtedness
         secured hereby or any other  instrument  now or hereafter  securing the
         indebtedness shall prove to have been incorrect, false or misleading on
         the date as of which made; or

(e)      Debtor or any other person shall fail to perform any covenant contained
         in the Note evidencing the indebtedness  secured hereby, this Agreement
         or in any other  instrument now or hereafter  securing or  guaranteeing
         the indebtedness secured hereby; or

(f)      Debtor or any other  person  shall  claim,  or any court  shall find or
         rule,  that  Secured  Party does not have a valid lien on any  security
         which may have been  provided  by Debtor or such  other  person for the
         indebtedness secured hereby; or

(g)      The sale,  encumbrances or abandonment  (except as otherwise  expressly
         permitted  by  this  Agreement  or the  Note)  of any  property  now or
         hereafter  covered by this  Agreement  or any other  instrument  now or
         hereafter  securing the indebtedness  secured hereby;  or the making of
         any levy, seizure or attachment thereof or thereon; or the loss, theft,
         substantial damage or destruction of any of such property; or

(h)      The occurrence of an Event of Default under any other instrument now or
         hereafter securing or guaranteeing the indebtedness secured hereby.

                                      -4-

<PAGE>

Section VII.    Remedies In Event of Default.
---------------------------------------------

         7.1  Upon  the  occurrence  of an  Event  of  Default,  and at any time
thereafter,  Secured Party shall have the option of declaring, without notice to
any person, all indebtedness secured hereby,  principal and accrued interest, to
be immediately due and payable.

         7.2  Upon  the  occurrence  of an  Event  of  Default,  and at any time
thereafter,  Secured Party may, without notice except hereinafter provided, sell
the  Collateral or any part thereof at public or private sale or at any broker's
board or on any  securities  exchange  for  cash,  upon  credit,  or for  future
delivery,  and at such  price or prices as  Secured  Party  may deem  best,  and
Secured Party may be the purchaser of any and all of the  Collateral so sold and
may apply upon the purchase price therefor to any indebtedness secured hereby or
any part thereof and thereafter  hold the same absolutely free from any right or
claim of whatsoever  kind. Upon any such sale Secured Party shall have the right
to  deliver,  assign  and  transfer  tot he  broker  or  purchaser  thereof  the
Collateral.  Each  purchaser  at any such  sale  shall  hold the  property  sold
absolutely free from any claim or right of whatsoever kind, including any equity
or right of redemption, stay or appraisal which Debtor has or may have under any
rule of law or statute now existing or hereafter  adopted.  Secured  Party shall
give  Debtor ten (10) days  written  notice  mailed to Debtor at the address set
forth herein (which shall satisfy any requirement of notice or reasonable notice
in any applicable  statute) of Secured Party's intention to make any such public
or private sale. Such notice,  in case of public sale,  shall state the time and
place  fixed  for  such  sale,  and in case of sale at  broker's  board  or on a
securities exchange,  shall state the board or exchange at which such sale is to
be made and the day on which the  Collateral  or that  portion  thereof so being
sold will first be offered for sale at such board or  exchange.  Any such public
sale shall be held at such time or times, within the ordinary business hours and
at such place or places, as Secured Party may fix in the notice of such sale. At
any sale the  Collateral  may be sold in one lot as an  entirety  or in separate
parcels as Secured Party may determine.  Secured Party shall not be obligated to
make any sale pursuant to any such notice.  Secured Party may, without notice or
publication,  adjourn  any  public  or  private  sale or  cause  the  same to be
adjourned from time to time by  announcement at any time and place fixed for the
sale, and such sale may be made at any time or place to which the same may be so
adjourned;  provided, however that Secured Party shall give Debtor ten (10) days
written notice of the time and place of any such adjourned  sale. In case of any
sale of all or any part of the Collateral on credit or for future delivery,  the
Collateral so sold shall be retained by Secured Party until the selling price is
paid by the  purchaser  thereof,  but Secured  Party shall incur no liability in
case of the failure of such  purchaser to take up and pay for the  Collateral so
sold,  and in case of any such failure,  such  Collateral may again be sold upon
like  notice.  Each and every  method of  disposition  described in this Section
shall constitute  disposition in a commercially  reasonable manner. Debtor shall
remain  liable for any  deficiency.  Notwithstanding  anything  to the  contrary
contained herein because of the federal  Securities Act of 1933, as amended,  or
any other  applicable  laws or regulations,  there may be legal  restrictions or
limitations  affecting Secured Party's ability to dispose of certain portions of
the  Collateral in the  enforcement  of its rights and remedies  hereunder.  For
these reasons,  Secured Party is hereby authorized by Debtor, but not obligated,
upon the  occurrence  of any  Event of  Default,  to sell all or any part of the
Collateral at one or more private sales,  restricting the prospective bidders or
purchasers to persons who will  represent and agree that they are purchasing the
Collateral  for  their  own  account  or  investment  and not with a view to the
distribution  or resale of any of the Collateral or in any manner which will not
require the Collateral, or any part thereof, to be registered in accordance with
the Securities Act of 1933, as amended,  the rules and  regulations  promulgated
thereunder,  or any  other  law or  regulation,  at the  best  price  reasonably
obtainable by Secured Party at any such private sale or other disposition of any
of the  Collateral.  Debtor  clearly  understands  that Secured Party may in its
discretion approach a restricted number of potential  purchasers and that a sale
under such circumstances may yield a lower price for the Collateral, or any part
or parts thereof,  than would otherwise be obtainable if same were registered in
the open market.  Debtor agrees (i) that in the event Secured Party shall,  upon
the  occurrence  of any Event of Default,  sell the  Collateral,  or any portion
thereof,  at such private sale or sales,  Secured  Party shall have the right to
rely upon the advice and  opinion  of any member  firm of a national  securities
exchange as to the best price  reasonably  obtainable  upon such a private  sale
thereof,  and  (ii) in the  absence  of  fraud,  that  such  reliance  shall  be
conclusive  evidence  that  Secured  Party  disposed  of  the  Collateral  in  a
commercially reasonable manner under the Uniform Commercial Code of Texas.

                                      -5-

<PAGE>

         7.3  Upon  the  occurrence  of an  Event  of  Default,  and at any time
thereafter,  Secured  Party  shall have all the rights of a secured  party after
default under the Uniform Commercial Code of Texas, and in conjunction with, and
in addition to those rights; and

(a)      written notice mailed to Debtor as provided  herein ten (10) days prior
         to the date of public sale of the Collateral or prior to the date after
         which  private  sale of the  Collateral  will be made shall  constitute
         reasonable notice; and

(b)      it shall not be  necessary  that the  Collateral  or  any part  thereof
         be present at the  location of such sale; and

(c)      prior to the  application  of the  proceeds of any  disposition  of the
         Collateral to the secured indebtedness,  such proceeds shall be applied
         to the  expenses of  retaking,  holding,  preparing  for sale or lease,
         selling,  leasing  and the  like  and the  attorneys'  fees  and  legal
         expenses incurred by the Secured Party, Debtor to remain liable for any
         deficiency; and

(d)      the sale by  Secured  Party of less  than the  whole of the  Collateral
         shall not exhaust the rights of Secured  Party  hereunder,  and Secured
         Party  is  specifically  empowered  to make  successive  sale or  sales
         hereunder until the whole of the Collateral  shall be sold; and, if the
         proceeds of such sale of less than the whole of the Collateral shall be
         less than the  aggregate  of the  indebtedness  security  hereby,  this
         Agreement and the security interest created shall hereby remain in full
         force and effect as to the unsold  portion  of the  Collateral  just as
         though no sale had been made;

(e)      in the event any sale hereunder is not completed or is defective in the
         opinion of Secured  Party,  such sale shall not  exhaust  the rights of
         Secured Party hereunder and Secured Party shall have the right to cause
         a subsequent sale or sales to be made hereunder; and

(f)      any and all  statements  of fact or other  recitals made in any bill of
         sale or assignment or other instrument  evidencing any foreclosure sale
         hereunder as to nonpayment of the  indebtedness or as to the occurrence
         of any  default,  or as to Secured  Party  having  declared all of such
         indebtedness  is due and  payable,  or as to notice of time,  place and
         terms of sale and the properties to be sold having been duly given,  as
         to any other  thing  having been duly done by Secured  Party,  shall be
         taken as prima  facie  evidence of the truth of the facts so stated and
         recited; and

(g)      Secured  Party may appoint or delegate any one or more persons as agent
         to perform  any act or acts  necessary  or incident to any sale held by
         Secured  Party,  including  the  sending of notices  and the conduct of
         sale, but in the name and on behalf of Secured Party.

         7.4 All remedies  herein  expressly  provided for are cumulative of any
and all other  remedies  existing at law or in equity and are  cumulative of any
and all other remedies provided for in any other instrument securing the payment
of the secured  indebtedness,  or any part  thereof,  or  otherwise  benefitting
Secured  Party,  and the  resort  to any  remedy  provided  for by law shall not
prevent the concurrent or subsequent  employment of any other appropriate remedy
or remedies.

         7.5 Secured Party may resort to any security given by this Agreement or
to any other  security now existing or hereafter  given to secure the payment of
the secured indebtedness,  in whole or in part, and in such portions and in such
order as may seem best to Secured Party in its sole and uncontrolled discretion,
and any such action shall not in any way be considered as a waiver of any of the
rights, benefits or security interests evidenced by this Agreement.

         7.6 Secured Party may at any time cause any or all of the Collateral to
be  transferred  into its name or into  the  name or  names  of any  nominee  or
nominees of Secured  Party;  provided,  however,  any such nominee shall have no
greater rights to the Collateral granted to Secured Party herein.

                                      -6-
<PAGE>

Section VIII.   Additional Agreements.

         8.1 If all of the secured  indebtedness is paid as the same becomes due
and  payable,  and  if  all  of  the  covenants,  warranties,  undertakings  and
agreements made in this Agreement are kept and performed, then and in that event
only, all rights under this Agreement shall  terminate and the Collateral  shall
become wholly clear of the security interest evidenced hereby, and such security
interest shall be released by Secured Party in due form at Debtor's cost.

         8.2 Secured Party may waive any default without waiving any other prior
or subsequent default.  Secured Party may remedy any default without waiving the
default remedied.  The failure by Secured Party to exercise any right,  power or
remedy upon any default shall not be construed as a waiver of such default or as
a waiver of the right to  exercise  any such  right,  power or remedy at a later
date.  No single or partial  exercise  by Secured  Party of any right,  power or
remedy  hereunder  shall exhaust the same or shall preclude any other or further
exercise  thereof,  and  every  such  right,  power or remedy  hereunder  may be
exercised at any time and from time to time.  No  modification  or waiver of any
provision  hereof nor consent to any departure by Debtor  therefrom shall in any
event be  effective  unless the same  shall be in writing  and signed by Secured
Party and then such waiver or consent  shall be  effective  only in the specific
instances,  for the purpose for which given and to the extent therein specified.
No notice to nor demand on Debtor in any case shall of itself  entitle Debtor to
any  other or  further  notice  of demand  in  similar  or other  circumstances.
Acceptance  by Secured  Party of any payment in amount less than the amount then
due on any secured  indebtedness  shall be deemed an  acceptance on account only
and shall not in any way affect the existence of a default hereunder.

         8.3 Secured  Party may at any time and from time to time in writing (a)
waive compliance by Debtor with any covenant herein made by Debtor to the extent
and in the manner specified in such writing; (b) consent to Debtor doing any act
which hereunder Debtor is prohibited from doing, or consent to Debtor failing to
do any act which  hereunder  Debtor is  required to do, to the extent and in the
manner specified in such writing; (c) release any part of the Collateral, or any
interest  therein from the security  interest of this Agreement,  or (d) release
any party liable,  either directly or indirectly,  from the secured indebtedness
or from any covenant herein or in any other instrument now or hereafter securing
the payment of the secured indebtedness. No such act shall in any way impair the
rights of Secured  Party  hereunder  or impair or release the  liability  of any
party  except to the  extent  specifically  agreed to by  Secured  Party in such
writing.

         8.4 Any  notice,  request,  demand or other  communication  required or
permitted  hereunder  shall be given in writing by delivering  same in person to
the intended  addressee,  or by United States Postal Service,  postage  prepaid,
registered or certified mail, return receipt  requested,  or by prepaid telegram
(provided  that such  telegram  is  confirmed  by mail in the manner  previously
described),  sent  to the  intended  addressee  at the  address  shown  in  this
Agreement,  or to such different  address as the addressee shall have designated
by written notice sent in accordance herewith and actually received by the other
party at least ten (10) days in advance  of the date upon  which such  change of
address shall be effective.

         8.5 This  Agreement  shall  be  binding  upon  Debtor,  and the  heirs,
devisees,  administrators,   executors,  personal  representatives,   receivers,
trustees, successors and assigns of Debtor, including all successors in interest
of Debtor in and to all or any part of the  Collateral,  and shall  inure to the
benefit of Secured Party and the successors  and assigns of Secured  Party.  All
references  in this  Agreement  to Debtor or  Secured  Party  shall be deemed to
include all such parties.

         8.6  Secured  Party in its  discretion  may,  whether or not any of the
indebtedness  secured  hereby  be due,  in its name or in the name of  Debtor or
otherwise,  demand,  sue for,  collect or receive any money or other property at
any time  payable or  receivable  on account of or in exchange  for, or make any
compromise  settlement  deemed desirable with respect to, any of the Collateral,
but Secured Party shall be under no obligation to do so.

         8.7  Whenever  possible  each  provision  of this  Agreement  shall  be
interpreted in a manner as to be effective and valid. A  determination  that any
provision of this  Agreement in  unenforceable  or invalid  shall not affect the
enforceability or validity of any other provision,  and any  determination  that
the application of any provision of this Agreement to any person or circumstance
is illegal and unenforceable  shall not affect the enforceability or validity of
such provision as it may apply to other persons or circumstances.

                                      -7-
<PAGE>

         8.8 Secured  Party,  may by any employee or  employees  it  designates,
execute,  sign,  endorse,  transfer,  or deliver  in the name of Debtor,  notes,
checks, drafts or other instruments for the payment of money and receipts or any
other  documents  necessary to  evidence,  perfect and realize upon the security
interests and obligations of this Agreement.

         8.9 Secured  Party's  duty with  reference to the  Collateral  shall be
solely to use reasonable care in the custody and  preservation of the Collateral
in Secured Party's possession. Secured Party shall not be responsible in any way
for  any  depreciation  in  value  of the  Collateral,  nor  shall  any  duty or
responsibility  whatsoever  rest upon Secured Party to take  necessary  steps to
preserve rights against prior parties or to enforce collection of the Collateral
by legal  proceedings  or  otherwise,  the sole duty of the Secured  Party,  its
successors and assigns,  being to receive collections,  remittances and payments
on such  Collateral  as and when made.  In the event  Debtor  instructs  Secured
Party, in writing or orally, to deliver any or all of the Collateral to a broker
or other  third  person,  and  Secured  Party  agrees  to do so,  the  following
conditions  shall  be  conclusively  deemed  to be a  part  of  Secured  Party's
agreement,  whether or not they are specifically mentioned to Debtor at the time
of such agreement. Secured Party shall assume no responsibility for checking the
genuiness or authenticity of any person  purporting to be a messenger,  employee
or  representative  of the  broker  or other  third  person to whom  Debtor  has
directed  Secured  Party  to  deliver  the  Collateral,   or  the  genuiness  or
authenticity  of any  document of  instructions  delivered  by any such  person.
Debtor will be considered  by  requesting  any such delivery to have assumed all
risk of loss as to the Collateral.  Secured Party's sole  responsibility will be
to deliver the  Collateral  to the person  purporting  to be the broker or third
person described by Debtor, or a messenger,  employee or representative thereof.
Secured Party and Debtor hereby  expressly  agree that the foregoing  actions by
Secured Party shall constitute reasonable care.

         8.10 The pronouns used in this  Agreement  are in the masculine  gender
but shall be construed as feminine or neuter as occasion may require.

         8.11  The  section  headings  appearing  in this  Agreement  have  been
inserted  for  convenience  only and shall be given no  substantive  meaning  or
significance  whatever in construing the terms and provisions of this Agreement.
Terms used in this Agreement  which are defined in the Texas Uniform  Commercial
Code are used with the meanings as therein defined.

         8.12 This  Agreement  shall be governed by and  construed in accordance
with the laws of the State of Nevada and the United States of America.

         EXECUTED as of this 13th day of February, 2001.

                                                 "DEBTOR"

                                                 By: /s/ Patrick R. Greene
                                                    ------------------------
                                                 M&A WEST, INC.

                                                 "SECURED PARTY"
                                                 By:/s/
                                                    ------------------------
                                                 REALTEC LTD.NOTE RESTRUCTURE AGREEMENT

         THIS AGREEMENT is made and entered into this 26th day of January,  2001
by and between  Gerald M.  Larson  ("Larson"),  Larson  Holdings,  Inc.,  a Utah
corporation,   ("Larson  Holdings")  and  Headwaters  Incorporated,  a  Delaware
corporation ("Headwaters").

                                    RECITALS

                  A. Larson and Michael McEwan issued to Headwaters, then known
as Covol Technologies, Inc., a Promissory Note dated "August __, 1996" in the
original principal amount of Five Million Dollars (the "Original Note").
Pursuant to an Unlimited Guaranty dated April 29, 1998, Mr. McEwan was released
from the Original Note and Larson became the sole obligor thereunder.

                  B. Larson has requested that the Original Note be restructured
such that (i) Headwaters accept certain Headwaters securities owned by Larson
and Larson Holdings in partial payment, (ii) Headwaters forgive any remaining
balance over One Million Seven Hundred Fifty Thousand Dollars, (iii) Headwaters
will be given a security interest in certain collateral to secure the remaining
balance, as described below, and (iv) the payment schedule for the remaining
balance be changed to a single balloon payment in December, 2003, subject to
mandatory prepayment in certain circumstances. Headwaters is willing to accede
to such request on the terms and conditions described below.

         NOW THEREFORE, in consideration of the premises, the covenants and
conditions contained herein and other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, the parties agree to be
legally bound as follows:

         1. Larson and Larson Holdings shall deliver to Headwaters, and
Headwaters shall accept from Larson and Larson Holdings, in full satisfaction of
the Original Note, the following:

                           (a) A Stock Option Agreement dated January 1, 1995
                  (the "Option Agreement") which by its terms entitled Larson to
                  purchase 25,000 shares of Headwaters common stock at an
                  exercise price of $1.50 (as adjusted for a 1:10 reverse stock
                  split). Upon the effective date of the restructure (as defined
                  below) the Option Agreement shall be canceled by Headwaters
                  and all rights of Larson thereunder shall be forever
                  relinquished.

                           (b) Certificate(s) for 150,000 shares of Headwaters
                  common stock, registered in the name of Larson (the "Shares")
                  which Shares Larson transferred to Larson Holdings as of
                  January 12, 1999, duly endorsed for transfer to Headwaters.
                  Upon the effective date of the restructure (as defined below)
                  the Shares shall be canceled by Headwaters and all rights of
                  Larson and/or Larson Holdings thereunder shall be forever
                  relinquished.

                                        1
<PAGE>

                           (c) A new Promissory Note in the original principal
                  amount of $1,750,000 (the "Restructured Note") in the form
                  attached hereto as Exhibit "A" signed by Larson and guaranteed
                  by Larson Holdings.

                           (d) A Stock Pledge and Security Agreement from Larson
                  pledging all of the outstanding capital stock of Larson
                  Holdings to secure the Restructured Note in the form attached
                  hereto as Exhibit "C". The pledged stock shall also be
                  delivered to Headwaters in accordance with the terms of such
                  agreement.

                           (e) A Stock Pledge and Security Agreement from Larson
                  Holdings pledging all of the outstanding capital stock of
                  Larson Limestone Company, Inc. ("Limestone") to secure the
                  Restructured Note in the form attached hereto as Exhibit "B".
                  The pledged stock shall also be delivered to Headwaters in
                  accordance with the terms of such agreement.

         2. The effective date of the restructure shall be such time as
Headwaters has received the documents set forth in Paragraphs 1(a) through (e)
duly executed in form acceptable to it. Upon the effective date of the
restructure, Headwaters will mark the Original Note as "paid in full" or
"canceled" and deliver it to Larson. Larson and Headwaters acknowledge that the
balance of the principal and accrued interest of the Original Note exceeds the
sum of (i) the original balance of the Restructured Note, (ii) the value of the
Option Agreement and (iii) the value of the Shares. This excess amount will be
forgiven by Headwaters upon the effective date of the restructure and may
constitute forgiveness of indebtedness income to Larson.

         3. If the effective date of the restructure does not occur by March 31,
2001, Headwaters may notify Larson that it is terminating this Agreement and
Headwaters may immediately thereafter enforce its rights and remedies under the
Original Note.

         4. Larson acknowledges that the Restructured Note represents his full
recourse, personal obligation and that Headwaters may enforce its rights as a
creditor against Larson and his assets notwithstanding the Stock Pledge and
Security Agreements described above.

         5. Larson represents and warrants that he is the sole record and
beneficial owner of the Option Agreement and the Shares, that the Option
Agreement and Shares are free of any claim, charge, lien or encumbrance of any
person or entity whatsoever other than Headwaters and that Larson has the power
and authority to transfer the Option Agreement and Shares to Headwaters without
the consent or approval of any other person whatsoever.

         6. Prior to agreeing to deliver the Option Agreement and Shares to
Headwaters, Larson and Larson Holdings have had the opportunity to review all
filings made by Headwaters with the Securities and Exchange Commission and to
ask questions of management of Headwaters. Larson and Larson Holdings each
represents and warrants that he/it is an

                                        2
<PAGE>

"accredited investor" (as defined in Rule 501 of Regulation D promulgated by the
Securities and Exchange Commission) and has the financial and business
experience necessary to evaluate the merits and risks of his/its investment
represented by the Option Agreement and Shares. Larson and Larson Holdings each
acknowledges that the market value of Headwaters common stock may increase
following the effective date of the restructure and that Larson and Larson
Holdings will not benefit from such increase with respect to the Option
Agreement or the Shares.

         7. The parties to this Agreement will execute, acknowledge and deliver
all such instruments and take all such action as may be reasonably requested by
the other party in order to further effectuate the purposes of this Agreement
and to carry out the terms hereof.

         8. This  Agreement  shall  inure to the benefit of and shall be binding
upon the heirs, personal representatives and successors of the parties hereto.

         9. This Agreement and the rights and obligations hereunder shall be
construed in accordance with and governed by the laws of the State of Utah
without regard to principles of conflicts of law.

         10. This Agreement, together with the Restructured Note, Larson
Holding's Guaranty, Larson's Stock Pledge and Security Agreement, and Larson
Holding's Stock Pledge and Security Agreement (together, the "Transaction
Documents") contain all covenants, terms, provisions, and agreements between the
parties hereto or thereto relating to the subject matter of the Transaction
Documents. No prior agreement with respect to the same shall be of any force or
effect, and no covenant, term, provision, or agreement of any Transaction
Document may be modified except in a writing executed by all parties to the
Transaction Documents.

                  IN WITNESS WHEREOF, the parties hereto have duly executed this
Agreement as of the day and year first above written.

                                                 /s/ Gerald M. Larson
                                                ---------------------
                                                Gerald M. Larson

                                                HEADWATERS INCORPORATED

                                                By: /s/ Steven G. Stewart

                                                LARSON HOLDINGS, INC.

                                                By: /s/ Gerald M. Larson

                                        3

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