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                                                                   EXHIBIT 10.26

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                  REGISTRATION AND INVESTOR'S RIGHTS AGREEMENT

                          DATED AS OF FEBRUARY 2, 2001

                                 BY AND BETWEEN

                                  PROBEX CORP.

                                       AND

                       UNITED INFRASTRUCTURE COMPANY, LLC

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                                TABLE OF CONTENTS

<TABLE>

<S>                                                                       <C>
1.  DEFINITIONS .........................................................  1

2.  REGISTRATION ........................................................  2

3.  OBLIGATIONS OF THE COMPANY ..........................................  4

4.  OBLIGATIONS OF THE INVESTOR .........................................  8

5.  EXPENSES OF REGISTRATION ............................................  9

6.  INDEMNIFICATION .....................................................  9

7.  CONTRIBUTION ........................................................ 11

8.  REPORTS UNDER THE EXCHANGE ACT ...................................... 12

9.  INFORMATION RIGHTS .................................................. 12

10. INSPECTION RIGHTS ................................................... 12

11. REPRESENTATION RIGHTS ............................................... 13

12. ASSIGNMENT OF REGISTRATION RIGHTS ................................... 13

13. AMENDMENT OF REGISTRATION RIGHTS .................................... 13

14. TERMINATION OF REGISTRATION RIGHTS .................................. 14

15. GENERAL PROVISIONS .................................................. 14

EXHIBIT A ...............................................................  a
</TABLE>

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                  REGISTRATION AND INVESTOR'S RIGHTS AGREEMENT

         THIS REGISTRATION AND INVESTOR'S RIGHTS AGREEMENT (this "Agreement"),
is made as of February 2, 2001, by and between Probex Corp., a Delaware
corporation, with its headquarters located at 13355 Noel Road, Suite 1200,
Dallas, Texas 75240 (the "Company"), and United Infrastructure Company, LLC, a
Delaware limited liability company (together with its respective affiliates, any
assignee or transferee of its respective rights hereunder, the "Investor").

         WHEREAS, in connection with that certain Stock Purchase Agreement by
and between the parties hereto of even date herewith (the "Stock Purchase
Agreement"), the Company has agreed, upon the terms and subject to the
conditions contained therein, to issue and sell to the Investor certain shares
of its common stock, par value $.001 per share (the "Common Stock").

         WHEREAS, to induce the Investor to execute and deliver the Stock
Purchase Agreement, the Company has agreed to provide (a) certain registration
rights under the Securities Act of 1933, as amended, and the rules and
regulations thereunder, or any similar successor statute (collectively, the
"Securities Act"), and applicable state securities laws; and (b) certain other
rights as set forth herein.

         NOW, THEREFORE, in consideration of the premises and the mutual
covenants contained herein and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the Company and the
Investor hereby agree as follows:

         1.       DEFINITIONS.

                  (a) As used in this Agreement, the following terms shall have
the following meanings:

                           (i) "Investor" means the Investor and any transferee
or assignee who agrees to become bound by the provisions of this Agreement in
accordance with Section 12 hereof and who executes a form of Joinder Agreement,
attached hereto as Exhibit A.

                           (ii) "register," "registered," and "registration"
refer to a registration effected by preparing and filing a Registration
Statement or Statements in compliance with the Securities Act and pursuant to
Rule 415 under the Securities Act or any successor rule providing for offering
securities on a continuous basis ("Rule 415"), and the declaration or ordering
of effectiveness of such Registration Statement by the United States of America
Securities and Exchange Commission (the "SEC").

                           (iii) "Registrable Securities" means the shares of
Common Stock issued to Investor in connection with the First Tranche Investment,
the Second Tranche Investment and the Third Tranche Investment, all other shares
of Common Stock beneficially owned by the Investor, any shares of Common Stock
issuable upon exercise of the Warrant, and any shares of capital stock issued or
issuable as a dividend on or in exchange for or otherwise with respect to any of
the foregoing.

                           (iv) "Registration Statement" means one or more
registration statements of the Company filed with the SEC under the Securities
Act pursuant to this Agreement.

                           (v) "Warrant" has the meaning specified in Section
2(b)(i) below.

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                  (b) Capitalized terms used herein and not otherwise defined
herein shall have the respective meanings set forth in the Stock Purchase
Agreement.

         2.       REGISTRATION.

                  (a) Mandatory Registration. The Company shall prepare, and, as
soon as practicable after the date of this Agreement but not later than March
31, 2001 unless the Investor provides a written waiver of this requirement, file
with the SEC a Registration Statement on Form S-1 or Form SB-2 (or, if
available, on Form S-3, or if Form S-3 is not available, on such form of
Registration Statement as is then available to effect a registration of the
Registrable Securities), covering the resale of the Registrable Securities to
enable the resale by the Investor from time to time on the American Stock
Exchange (the "AMEX") or in privately-negotiated transactions or otherwise. The
Company shall register all of the Registrable Securities on the Registration
Statement; provided, however, that if the Company determines that not all of the
Registrable Securities can be registered on one Registration Statement, then the
Company will file a Registration Statement as soon as practicable following the
issuance of any Registrable Securities not registered prior to issuance.

                  (b) Additional Issuances of Common Stock. Subject to the last
sentence of this Section 2(b), the Company shall use its commercially reasonable
efforts to obtain effectiveness of the Registration Statement as soon as
practicable. However, in the circumstances described in this Section 2(b), the
Company shall be required to issue a Warrant for the purchase of additional
shares of Common Stock to the Investor in such amounts and as soon as
practicable if not otherwise specified and in the manner set forth below, as
partial relief for the damages to the Investor by reason of any such delay in or
reduction of their ability to sell the Registrable Securities (which remedy
shall be exclusive of any other remedies available at law or in equity).
Investor hereby agrees to waive its rights to receive additional shares of
Common Stock upon failure of the Registration Statement to be declared effective
as specified in the Term Sheet for Purchase of Common Stock, Revision 1 between
the Company and the Investor dated October 11, 2000. In consideration thereof,
the Company will promptly issue the Investor a warrant (the "Warrant") to
purchase up to 250,000 shares of Common Stock at a price of $1.40 per share
exercisable at any time from and after the Second Tranche Closing Date, to and
including January 31, 2007.

                  (c) Piggy-Back Registrations. Subject to the last sentence of
this Section 2(c), if at any time prior to the expiration of the Registration
Period (as hereinafter defined) the Company shall file with the SEC a
Registration Statement relating to an offering for its own account or the
account of others under the Securities Act of any of its equity securities
(other than on Form S-4 or Form S-8 or their then equivalents relating to equity
securities to be issued solely in connection with any acquisition of any entity
or business or equity securities issuable in connection with stock option or
other employee benefit plans), the Company shall send to the Investor written
notice of such determination and, if within fifteen (15) days after the
effective date of such notice, the Investor shall so request in writing, the
Company shall include in such Registration Statement all or any part of the
Registrable Securities the Investor requests to be registered, except that if,
in connection with any underwritten public offering for the account of the
Company the managing underwriter(s) thereof shall impose a limitation on the
number of shares of Common Stock which may be included in the Registration
Statement because, in such underwriter's judgment, marketing or other factors
dictate such limitation is necessary to facilitate public distribution, then the
Company shall be obligated to include in such Registration Statement only such
limited portion of the Registrable Securities with respect to which the Investor
has requested inclusion hereunder as the underwriter shall permit; provided,
however,

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that the Company shall not exclude any Registrable Securities unless the Company
has first excluded all outstanding securities, the holders of which are not
entitled to inclusion of such securities in such Registration Statement or are
not entitled to pro rata inclusion with the Registrable Securities; and
provided, further, however, that, after giving effect to the immediately
preceding proviso, any exclusion of Registrable Securities shall be made pro
rata with holders of other securities having the right to include such
securities in the Registration Statement other than holders of securities
entitled to inclusion of their securities in such Registration Statement by
reason of priority registration rights. No right to registration of Registrable
Securities under this Section 2(c) shall be construed to limit any registration
required under Section 2(a) hereof. If an offering in which the Investor is
entitled to registration under this Section 2(c) is an underwritten offering,
then the Investor whose Registrable Securities are included in such Registration
Statement shall, unless otherwise agreed by the Company, offer and sell such
Registrable Securities in an underwritten offering using the same underwriter or
underwriters and, subject to the provisions of this Agreement, on the same terms
and conditions as other shares of Common Stock included in such underwritten
offering. The Company shall not be obligated to effect, or to take any action to
effect, any registration pursuant to this Section 2(c), after the Company has
effected three (3) registrations pursuant to this Section 2(c), and such
registrations have been declared effective by the SEC.

                  (d) Demand Registration.

                           (i) If the Company shall receive at any time after
June 30, 2001, a written request from the Investor that the Company file a
Registration Statement under the Securities Act covering the registration of the
Registrable Securities then outstanding, then the Company shall, subject to the
limitations of subsection (d)(ii) below, use commercially reasonable efforts to
effect as soon as practicable, and in any event within sixty (60) days of the
receipt of such request, the registration under the Securities Act of all
Registrable Securities which the Investor requests to be registered.

                           (ii) If the Investor intends to distribute the
Registrable Securities covered by its request by means of an underwriting, the
Investor shall so advise the Company as a part of its request made pursuant to
this Section 2(d). The underwriter will be selected by the Investor and shall be
reasonably acceptable to the Company. If the Investor proposes to distribute its
securities through such an underwriting, then it shall (together with the
Company as provided in subsection 3(i)) enter into an underwriting agreement in
customary form with the underwriter or underwriters selected for such
underwriting. Notwithstanding any other provision of this Section 2(d), if the
underwriter advises the Investor and the Company in writing that marketing
factors require a limitation of the number of shares to be underwritten, then
the Company shall so advise the Investor, and the number of shares of
Registrable Securities that may be included in the underwriting shall be reduced
as required by the underwriter, and the Company shall include in such
registration, the maximum number of Registrable Securities requested to be
included therein. Any Registrable Securities excluded and withdrawn from such
underwriting shall be withdrawn from the registration.

                           (iii) Notwithstanding the foregoing, if the Company
shall furnish the Investor a Registration Statement pursuant to this Section
2(d), a certificate signed by the President of the Company stating that in the
good faith judgment of the Board of Directors of the Company, it would be
seriously detrimental to the Company and its stockholders for such Registration
Statement to be filed and it is therefore essential to defer the filing of such
Registration Statement, the Company shall have the right to defer such filing
for a period of not more than one hundred twenty (120) days after receipt by the
Company of the request for

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registration from the Investor; provided, however, that the Company may not
utilize this right more than once in any twelve-month period.

                           (iv) In addition, the Company shall not be obligated
to effect, or to take any action to effect, any registration pursuant to this
Section 2(d) after the Company has effected two (2) registrations pursuant to
this Section 2(d) and each such registration has been declared or ordered
effective by the SEC.

                  (e) Form S-3 Registration. In the event that the Company shall
receive from the Investor a written request or requests that the Company effect
a registration on Form S-3 and any related qualification or compliance with
respect to all or a part of the Registrable Securities owned by the Investor,
the Company will as soon as practicable, effect such registration and all such
qualifications and compliances as may be so requested and as would permit or
facilitate the sale and distribution of all or such portion of the Investor's
Registrable Securities as are specified in such request. The Company shall not
be obligated to effect any such registration, qualification or compliance,
pursuant to this Section 2(e): (w) if the Company has, within the twelve (12)
month period preceding the date of such request, already effected two
registrations on Form S-3 for the Investor pursuant to this Section 2(e); (x) if
Form S-3 is not available for such offering by the Investor; (y) if the Investor
proposes to sell Registrable Securities and such other securities (if any) at an
aggregate price to the public (net of any underwriters' discounts or
commissions) of less than Five Hundred Thousand Dollars ($500,000.00); or (z) if
the Company shall furnish to the Investor a certificate signed by the President
of the Company stating that in the good faith judgment of the Board of Directors
of the Company, it would be seriously detrimental to the Company and its
stockholders for such Form S-3 Registration to be effected at such time, in
which event the Company shall have the right to defer the filing of the Form S-3
Registration Statement for a period of not more than one hundred twenty (120)
days after receipt of the request of the Investor under this Section 2(e);
provided, however, that the Company shall not utilize this right more than once
in any twelve-month period.

                  (f) Notwithstanding anything to the contrary set forth herein,
the registration rights of the Investor pursuant to Sections 2(c), (d) and (e)
above shall only be available in the event the Company fails to timely file,
obtain effectiveness or maintain effectiveness of the Registration Statement to
be filed pursuant to Section 2(a) in accordance with the terms of this
Agreement.

         3.       OBLIGATIONS OF THE COMPANY.

         In connection with the registration of the Registrable Securities, the
Company shall have the following obligations:

                  (a) The Company shall prepare promptly and file a Registration
Statement with the SEC in accordance with Section 2(a) hereof, and thereafter
use its best efforts to cause such Registration Statement to become effective as
soon as possible after such filing, and keep the Registration Statement
effective pursuant to Rule 415 at all times until such date as is the earlier of
(i) the date on which all of the Registrable Securities have been sold, or (ii)
the date on which the Registrable Securities (in the opinion of counsel to the
Investor) may be immediately sold without restriction (including without
limitation as to volume by each holder thereof) without registration under the
Securities Act (the "Registration Period"), which Registration Statement
(including any amendments or supplements thereto and prospectuses contained
therein) shall not contain any untrue statement of a material fact or omit to
state a material fact required to be stated therein, or necessary to make the
statements therein not misleading.

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                  (b) The Company shall prepare and file with the SEC such
amendments (including post-effective amendments) and supplements to the
Registration Statement and the prospectus used in connection with the
Registration Statement as may be necessary to keep the Registration Statement
effective at all times during the Registration Period, and, during such period,
comply with the provisions of the Securities Act with respect to the disposition
of all Registrable Securities of the Company covered by the Registration
Statement until such time as all of such Registrable Securities have been
disposed of in accordance with the intended methods of disposition by the seller
or sellers thereof as set forth in the Registration Statement.

                  (c) The Company shall furnish to the Investor whose
Registrable Securities are included in the Registration Statement and to its
legal counsel (i) promptly after the same is prepared and publicly distributed,
filed with the SEC, or received by the Company, one copy of the Registration
Statement and any amendment thereto, each preliminary prospectus and prospectus
and each amendment or supplement thereto, and, in the case of the Registration
Statement referred to in Section 2(a), each letter written by or on behalf of
the Company to the SEC or the staff of the SEC, and each item of correspondence
from the SEC or the staff of the SEC, in each case relating to such Registration
Statement (other than any portion of any thereof which contains information for
which the Company has sought confidential treatment), and (ii) such number of
copies of a prospectus, including a preliminary prospectus, and all amendments
and supplements thereto and such other documents as the Investor may reasonably
request in order to facilitate the disposition of the Registrable Securities
owned by the Investor. The Company will promptly notify the Investor by
facsimile of the effectiveness of the Registration Statement or any
post-effective amendment. The Company will promptly respond to any and all
comments received from the SEC, with a view towards causing any Registration
Statement or any amendment thereto to be declared effective by the SEC as soon
as practicable and shall promptly file an acceleration request as soon as
practicable following the resolution or clearance of all SEC comments or, if
applicable, following notification by the SEC that the Registration Statement or
any amendment thereto will not be subject to review.

                  (d) The Company shall use its best efforts to (i) register and
qualify the Registrable Securities covered by the Registration Statement under
such other securities or "blue sky" laws of such jurisdictions in the United
States as the Investor, holding Registrable Securities being offered, may
reasonably request, (ii) prepare and file in those jurisdictions such amendments
(including post-effective amendments) and supplements to such registrations and
qualifications as may be necessary to maintain the effectiveness thereof during
the Registration Period, (iii) take such other actions as may be necessary to
maintain such registrations and qualifications in effect at all times during the
Registration Period, and (iv) take all other actions reasonably necessary or
advisable to qualify the Registrable Securities for sale in such jurisdictions;
provided, however, that the Company shall not be required in connection
therewith or as a condition thereto to (a) qualify to do business in any
jurisdiction where it would not otherwise be required to qualify but for this
Section 3(d), (b) subject itself to general taxation in any such jurisdiction,
(c) file a general consent to service of process in any such jurisdiction, (d)
provide any undertakings that cause the Company undue expense or burden, or (e)
make any change in its charter or bylaws, which in each case the Board of
Directors of the Company determines to be contrary to the best interests of the
Company and its stockholders.

                  (e) As promptly as practicable after becoming aware of such
event, the Company shall notify the Investor of the happening of any event of
which the Company has knowledge, as a result of which the prospectus included in
the Registration Statement, as then in effect, includes an untrue statement of a
material fact or omission to state a material fact required to be stated therein
or necessary to make the statements therein not misleading, and use its best

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efforts promptly to prepare a supplement or amendment to the Registration
Statement to correct such untrue statement or omission, and deliver such number
of copies of such supplement or amendment to the Investor as it may reasonably
request.

                  (f) The Company shall use its best efforts to prevent the
issuance of any stop order or other suspension of effectiveness of a
Registration Statement and, if such an order is issued, to obtain the withdrawal
of such order at the earliest possible moment and to notify the Investor, holder
of Registrable Securities being sold (or, in the event of an underwritten
offering, the managing underwriters), of the issuance of such order and the
resolution thereof.

                  (g) The Company shall permit counsel to the Investor, as
holder of the Registrable Securities, to review the Registration Statement and
all amendments and supplements thereto (as well as all requests for acceleration
or effectiveness thereof) a reasonable period of time prior to their filing with
the SEC, and the Company will not file any document in a form to which such
counsel reasonably objects and the Company will not request acceleration of the
Registration Statement without prior notice to such counsel. In the event of a
disagreement between the Investor and the Company regarding any action taken by
the Company to which counsel to the Investor objects (the "Dispute"), the
Investor shall give written notice (the "Dispute Notice") of the Dispute to the
Company, delivered in accordance with Section 15(b) of this Agreement. The
Dispute Notice shall set forth in reasonable detail the Dispute of the Investor.
Upon receipt of the Dispute Notice, the dates upon which the Company incurs
damage payments to the Investor ("Damages Dates"), set forth in Section 2(b) of
this Agreement, including subsections thereof, shall be extended by the number
of elapsed day(s) of the Dispute (the "Dispute Delay"). Upon written notice to
the Company by the Investor of a resolution (the "Resolution Notice") of the
Dispute to the reasonable satisfaction of the Investor, the Damage Dates shall
be adjusted by the Dispute Delay upon receipt by the Company of the Resolution
Notice delivered in accordance with Section 15(b) of this Agreement. The
sections of the Registration Statement covering information with respect to the
Investor, Investor's beneficial ownership of securities of the Company, or the
Investor's intended method of disposition of Registrable Securities shall
conform to the information provided to the Company by the Investor.

                  (h) At the request of the Investor, the Company shall furnish,
on the date that Registrable Securities are delivered to an underwriter, if any,
for sale in connection with the Registration Statement or, if such securities
are not being sold by an underwriter, on the date of effectiveness thereof (i)
an opinion, dated as of such date, from counsel representing the Company for
purposes of such Registration Statement, in form, scope and substance as is
customarily given in an underwritten public offering, addressed to the
underwriters, if any, and the Investor, and (ii) a letter, dated such date, from
the Company's independent certified public accountants, in form and substance as
is customarily given by independent certified public accountants to underwriters
in an underwritten public offering, addressed to the underwriters, if any, and
the Investor.

                  (i) In the event of any underwritten public offering, the
Company shall enter into and perform its obligations under an underwriting
agreement, in usual and customary form, with the managing underwriter of such
offering. The Investor, participating in such an underwriting, shall also enter
into and perform its obligations under such an agreement.

                  (j) The Company shall make available for inspection by (i) the
Investor, (ii) any underwriter participating in any disposition pursuant to the
Registration Statement, (iii) one firm of attorneys and one firm of accountants
or other agents retained by the Investor, and (iv) one

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firm of attorneys retained by all such underwriters (collectively, the
"Inspectors") all pertinent financial and other records, and pertinent corporate
documents and properties of the Company (collectively, the "Records"), as shall
be reasonably deemed necessary by each Inspector to enable each Inspector to
exercise its due diligence responsibility, and cause the Company's officers,
directors and employees to supply all information which any Inspector may
reasonably request for purposes of such due diligence; provided, however, that
each Inspector shall hold in confidence and shall not make any disclosure
(except to the Investor) of any Record or other information which the Company
determines in good faith to be confidential, and of which determination the
Inspectors are so notified, unless (a) the disclosure of such Records is
necessary to avoid or correct a misstatement or omission in any Registration
Statement, (b) the release of such Records is ordered pursuant to a subpoena or
other order from a court or government body of competent jurisdiction, or (c)
the information in such Records has been made generally available to the public
other than by disclosure in violation of this or any other agreement. The
Company shall not be required to disclose any confidential information in such
Records to any Inspector until and unless such Inspector shall have entered into
confidentiality agreements (in form and substance satisfactory to the Company)
with the Company with respect thereto, substantially in the form of this Section
3(j). The Investor agrees that it shall, upon learning that disclosure of such
Records is sought in or by a court or governmental body of competent
jurisdiction or through other means, give prompt notice to the Company and allow
the Company, at its expense, to undertake appropriate action to prevent
disclosure of, or to obtain a protective order for, the Records deemed
confidential. Nothing herein (or in any other confidentiality agreement between
the Company and the Investor) shall be deemed to limit the Investor's ability to
sell Registrable Securities in a manner which is otherwise consistent with
applicable laws and regulations.

                  (k) The Company shall hold in confidence and not make any
disclosure of information concerning the Investor provided to the Company unless
(i) disclosure of such information is necessary to comply with federal or state
securities laws, (ii) the disclosure of such information is necessary to avoid
or correct a misstatement or omission in any Registration Statement, (iii) the
release of such information is ordered pursuant to a subpoena or other order
from a court or governmental body of competent jurisdiction, or (iv) such
information has been made generally available to the public other than by
disclosure in violation of this or any other agreement. The Company agrees that
it shall, upon learning that disclosure of such information concerning the
Investor is required under clause (i) or clause (ii) above, or is sought in or
by a court or governmental body of competent jurisdiction or through other
means, give prompt notice to the Investor prior to making such disclosure, and
allow the Investor, at its expense, to undertake appropriate action to prevent
disclosure of, or to obtain a protective order for, such information.

                  (l) The Company shall (i) cause all the Registrable Securities
covered by the Registration Statement to be listed on each national securities
exchange on which securities of the same class or series issued by the Company
are then listed, including, without limitation, the AMEX, if any, if the listing
of such Registrable Securities is then permitted under the rules of such
exchange, or (ii) secure the designation and quotation, of all the Registrable
Securities covered by the Registration Statement on the Nasdaq or, if not
eligible for the Nasdaq on the Nasdaq SmallCap and, without limiting the
generality of the foregoing, to arrange for at least two (2) market makers to
register with the National Association of Securities Dealers, Inc. (the "NASD")
as such with respect to such Registrable Securities.

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                  (m) The Company shall provide a transfer agent and registrar,
which may be a single entity, for the Registrable Securities not later than the
effective date of the Registration Statement.

                  (n) The Company shall cooperate with the Investor, as holder
of Registrable Securities being offered, and the managing underwriter or
underwriters, if any, to facilitate the timely preparation and delivery of
certificates (not bearing any restrictive legends) representing Registrable
Securities to be offered pursuant to the Registration Statement and enable such
certificates to be in such denominations or amounts, as the case may be, as the
managing underwriter or underwriters, if any, or the Investor may reasonably
request and registered in such names as the managing underwriter or
underwriters, if any, or the Investor may request, and, within three (3)
business days after a Registration Statement which includes Registrable
Securities is ordered effective by the SEC, the Company shall deliver, and shall
cause legal counsel selected by the Company to deliver, to the transfer agent
for the Registrable Securities (with copies to the Investor, whose Registrable
Securities are included in such Registration Statement) an instruction in
customary form and substance and an opinion of such counsel in customary form
and substance.

                  (o) At the request of the Investor, as holder of the
Registrable Securities, the Company shall prepare and file with the SEC, such
amendments (including post-effective amendments) and supplements to a
Registration Statement and the prospectus used in connection with the
Registration Statement as may be necessary in order to change the plan of
distribution set forth in such Registration Statement.

                  (p) In the event that the Investor transfers or assigns any
Registrable Securities in accordance with Section 12 hereof, the Company will
supplement or amend the Registration Statement to allow for the transferee or
assignee to effect sales of Registrable Securities pursuant to the Registration
Statement.

                  (q) The Company shall take all other reasonable actions
necessary to expedite and facilitate disposition by the Investor of Registrable
Securities pursuant to the Registration Statement.

         4.       OBLIGATIONS OF THE INVESTOR.

         In connection with the registration of the Registrable Securities, the
Investor shall have the following obligations:

                  (a) It shall be a condition precedent to the obligations of
the Company to complete the registration pursuant to this Agreement that the
Investor shall furnish to the Company such information regarding itself, the
Registrable Securities held by it and the intended method of disposition of the
Registrable Securities held by it as shall be reasonably required to effect the
registration of such Registrable Securities and shall execute such documents in
connection with such registration as the Company may reasonably request. At
least three (3) business days prior to the first anticipated filing date of the
Registration Statement, the Company shall notify the Investor of the information
the Company requires from it.

                  (b) By the Investor's acceptance of the Registrable
Securities, the Investor agrees to cooperate with the Company as reasonably
requested by the Company in connection with the preparation and filing of the
Registration Statement hereunder, unless the Investor has

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notified the Company in writing of its election to exclude all of its
Registrable Securities from the Registration Statement.

                  (c) The Investor agrees that, upon receipt of any notice from
the Company of the happening of any event of the kind described in Section 3(e)
or Section 3(f) hereof, the Investor will immediately discontinue disposition of
Registrable Securities pursuant to the Registration Statement covering such
Registrable Securities until the Investor's receipt of the copies of the
supplemented or amended prospectus contemplated by Section 3(e) or Section 3(f)
hereof and, if so directed by the Company, the Investor shall deliver to the
Company (at the expense of the Company) or destroy (and deliver to the Company a
certificate of destruction) all copies in the Investor's possession of the
prospectus covering such Registrable Securities current at the time of receipt
of such notice.

                  (d) The Investor may participate in any underwritten
registration hereunder unless the Investor (i) agrees to sell its Registrable
Securities on the basis provided in any underwriting arrangements in usual and
customary form entered into by the Company, (ii) completes and executes all
questionnaires, powers of attorney, indemnities, underwriting agreements and
other documents reasonably required under the terms of such underwriting
arrangements, and (iii) agrees to pay its pro rata share of all underwriting
discounts and commissions and any expenses in excess of those payable by the
Company pursuant to Section 5 hereof.

         5.       EXPENSES OF REGISTRATION.

         All reasonable expenses, other than underwriting discounts and
commissions, incurred in connection with registrations, filings or
qualifications pursuant to Sections 2 and 3 hereof, including without limitation
all registration, listing and qualification fees, printers and accounting fees,
the fees and disbursements of counsel for the Company, and the reasonable fees
and disbursements of one counsel selected by the Investor pursuant to Section
3(g) hereof, shall be borne by the Company.

         6.       INDEMNIFICATION.

         In the event any Registrable Securities are included in a Registration
Statement under this Agreement:

                  (a) To the extent permitted by law, the Company will
indemnify, hold harmless and defend (i) the Investor, as holder of such
Registrable Securities, (ii) the directors, officers, partners, employees,
agents and each person who controls the Investor within the meaning of the
Securities Act or the Securities Exchange Act of 1934, as amended (the "Exchange
Act"), if any, (iii) any underwriter (as defined in the Securities Act) for the
Investor, and (iv) the directors, officers, partners, employees and each person
who controls any such underwriter within the meaning of the Securities Act or
the Exchange Act, if any (each, an "Indemnified Person"), against any joint or
several losses, claims, damages, liabilities or expenses (collectively, together
with actions, proceedings or inquiries by any regulatory or self-regulatory
organization, whether commenced or threatened, in respect thereof, "Claims") to
which any of them may become subject insofar as such Claims arise out of or are
based upon: (i) any untrue statement or alleged untrue statement of a material
fact in a Registration Statement or the omission or alleged omission to state
therein a material fact required to be stated or necessary to make the
statements therein not misleading; (ii) any untrue statement or alleged untrue
statement of a material fact contained in any preliminary prospectus if used
prior to the effective date of such

                                      -9-
<PAGE>   12

Registration Statement, or contained in the final prospectus (as amended or
supplemented, if the Company files any amendment thereof or supplement thereto
with the SEC) or the omission or alleged omission to state therein any material
fact necessary to make the statements made therein, in light of the
circumstances under which the statements therein were made, not misleading; or
(iii) any violation or alleged violation by the Company of the Securities Act,
the Exchange Act, any other law, including, without limitation, any state
securities law, or any rule or regulation thereunder relating to the offer or
sale of the Registrable Securities (the matters in the foregoing clauses (i)
through (iii) being, collectively, "Violations"). Subject to the restrictions
set forth in Section 6(c) with respect to the number of legal counsel, the
Company shall reimburse the Indemnified Person, promptly as such expenses are
incurred and are due and payable, for any reasonable legal fees or other
reasonable expenses incurred by them in connection with investigating or
defending any such Claim. Notwithstanding anything to the contrary contained
herein, the indemnification agreement contained in this Section 6(a): (i) shall
not apply to a Claim arising out of or based upon a Violation which occurs in
reliance upon and in conformity with information furnished in writing to the
Company by any Indemnified Person or underwriter for such Indemnified Person
expressly for use in connection with the preparation of the Registration
Statement or any such amendment thereof or supplement thereto, if such
prospectus was timely made available by the Company pursuant to Section 3(c)
hereof; (ii) shall not apply to amounts paid in settlement of any Claim if such
settlement is effected without the prior written consent of the Company, which
consent shall not be unreasonably withheld; and (iii) with respect to any
preliminary prospectus, shall not inure to the benefit of any Indemnified Person
if the untrue statement or omission of material fact contained in the
preliminary prospectus was corrected on a timely basis in the prospectus, as
then amended or supplemented, such corrected prospectus was timely made
available by the Company pursuant to Section 3(c) hereof, and the Indemnified
Person was promptly advised in writing not to use the incorrect prospectus prior
to the use giving rise to a Violation and such Indemnified Person,
notwithstanding such advice, used it. Such indemnity shall remain in full force
and effect regardless of any investigation made by or on behalf of the
Indemnified Person and shall survive the transfer of the Registrable Securities
by the Investor, pursuant to Section 12.

                  (b) In connection with any Registration Statement in which the
Investor is participating, the Investor agrees severally and not jointly to
indemnify, hold harmless and defend, to the same extent and in the same manner
set forth in Section 6(a), the Company, each of its directors, each of its
officers who signs the Registration Statement, each person, if any, who controls
the Company within the meaning of the Securities Act or the Exchange Act, any
underwriter and any other stockholder selling securities pursuant to the
Registration Statement or any of its directors or officers or any person who
controls such stockholder or underwriter within the meaning of the Securities
Act or the Exchange Act (collectively and together with an Indemnified Person,
an "Indemnified Party"), against any Claim to which any of them may become
subject, under the Securities Act, the Exchange Act or otherwise, insofar as
such Claim arises out of or is based upon any Violation by the Investor, in each
case to the extent (and only to the extent) that such Violation occurs in
reliance upon and in conformity with written information about the Investor
furnished to the Company by the Investor expressly for use in connection with
such Registration Statement; and subject to Section 6(c), the Investor will
reimburse any legal or other expenses (promptly as such expenses are incurred
and are due and payable) reasonably incurred by them in connection with
investigating or defending any such Claim; provided, however, that the indemnity
agreement contained in this Section 6(b) shall not apply to amounts paid in
settlement of any Claim if such settlement is effected without the prior written
consent of the Investor, which consent shall not be unreasonably withheld;
provided, further, however, that the Investor shall be liable under this
Agreement (including this Section 6(b) and Section 7) for only that amount as
does not exceed the net proceeds to the

                                      -10-
<PAGE>   13

Investor as a result of the sale of Registrable Securities pursuant to such
Registration Statement. Such indemnity shall remain in full force and effect
regardless of any investigation made by or on behalf of such Indemnified Party
and shall survive the transfer of the Registrable Securities by the Investor,
pursuant to Section 12. Notwithstanding anything to the contrary contained
herein, the indemnification agreement contained in this Section 6(b) with
respect to any preliminary prospectus shall not inure to the benefit of any
Indemnified Party if the untrue statement or omission of material fact contained
in the preliminary prospectus was corrected on a timely basis in the prospectus,
as then amended or supplemented.

                  (c) Promptly after receipt by an Indemnified Person or
Indemnified Party under this Section 6 of notice of the commencement of any
action (including any governmental action), such Indemnified Person or
Indemnified Party shall, if a Claim in respect thereof is to be made against any
indemnifying party under this Section 6, deliver to the indemnifying party a
written notice of the commencement thereof, and the indemnifying party shall
have the right to participate in, and, to the extent the indemnifying party so
desires, jointly with any other indemnifying party similarly noticed, to assume
control of the defense thereof with counsel mutually satisfactory to the
indemnifying party and the Indemnified Person or the Indemnified Party, as the
case may be; provided, however, that an Indemnified Person or Indemnified Party
shall have the right to retain its own counsel with the fees and expenses to be
paid by the indemnifying party, if, in the reasonable opinion of counsel
retained by the indemnifying party, the representation by such counsel of the
Indemnified Person or Indemnified Party and the indemnifying party would be
inappropriate due to actual or potential differing interests between such
Indemnified Person or Indemnified Party and any other party represented by such
counsel in such proceeding. The indemnifying party shall pay for only one
separate legal counsel for the Indemnified Persons or the Indemnified Parties,
as applicable, and such legal counsel shall be selected by the Investor, as
holder of the Registrable Securities included in the Registration Statement to
which the Claim relates (with the approval of the Investor), if the Investor is
entitled to indemnification hereunder, or the Company, if the Company is
entitled to indemnification hereunder, as applicable. The failure to deliver
written notice to the indemnifying party within a reasonable time of the
commencement of any such action shall not relieve such indemnifying party of any
liability to the Indemnified Person or Indemnified Party under this Section 6,
except to the extent that the indemnifying party is actually prejudiced in its
ability to defend such action. The indemnification required by this Section 6
shall be made by periodic payments of the amount thereof during the course of
the investigation or defense, as such expense, loss, damage or liability is
incurred and is due and payable.

         7.       CONTRIBUTION.

         To the extent any indemnification by an indemnifying party is
prohibited or limited by law, the indemnifying party agrees to make the maximum
contribution with respect to any amounts for which it would otherwise be liable
under Section 6 hereof to the fullest extent permitted by law; provided,
however, that (i) no contribution shall be made under circumstances where the
maker would not have been liable for indemnification under the fault standards
set forth in Section 6, (ii) no seller of Registrable Securities guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the
Securities Act) shall be entitled to contribution from any seller of Registrable
Securities who was not guilty of such fraudulent misrepresentation, and (iii)
contribution (together with any indemnification or other obligations under this
Agreement) by any seller of Registrable Securities shall be limited in amount to
the net amount of proceeds received by such seller from the sale of such
Registrable Securities.

                                      -11-
<PAGE>   14

         8.       REPORTS UNDER THE EXCHANGE ACT.

         With a view to making available to the Investor the benefits of Rule
144 promulgated under the Securities Act or any other similar rule or regulation
of the SEC that may at any time permit the investors to sell securities of the
Company to the public without registration ("Rule 144"), the Company agrees to:

                  (a) make and keep public information available, as those terms
are understood and defined in Rule 144;

                  (b) file with the SEC in a timely manner all reports and other
documents required of the Company under the Securities Act and the Exchange Act
so long as the Company remains subject to such requirements (it being understood
that nothing herein shall limit the Company's obligations under the Stock
Purchase Agreement) and the filing of such reports and other documents is
required for the applicable provisions of Rule 144; and

                  (c) furnish to the Investor, so long as it or its affiliates
owns Registrable Securities, promptly upon request, (i) a written statement by
the Company that it has complied with the reporting requirements of Rule 144,
the Securities Act and the Exchange Act, (ii) a copy of the most recent annual
or quarterly report of the Company and such other reports and documents so filed
by the Company, and (iii) such other information as may be reasonably requested
to permit the Investor to sell such securities pursuant to Rule 144 without
registration.

         9.       INFORMATION RIGHTS.

         The Company covenants and agrees that, commencing on the date upon
which the Company ceases to file periodic reports under the Exchange Act, for so
long as the Investor or any of its affiliates holds any of the Shares, the
Company will:

                  (a) Annual Reports. Deliver to the Investor, as soon as
practicable and in any event within ninety (90) days after the end of each
fiscal year of the Company, audited financial statements for the Company and its
Subsidiaries for such year, setting forth in comparative form, the figures from
the Company's previous fiscal year, prepared in accordance with generally
accepted accounting principles and practices; and

                  (b) Quarterly Reports. Deliver to the Investor, as soon as
practicable and in any event within forty-five (45) days after the end of each
fiscal quarter of the Company (except the last quarter of the Company's fiscal
year), quarterly unaudited financial statements on a consolidated basis,
including a balance sheet, a statement of income and a statement of cash flows.

         10.      INSPECTION RIGHTS

         The Company shall permit the Investor, at the Investor's expense, to
visit and inspect the Company's and its Subsidiaries' properties, to examine the
books of account and records of the Company and its Subsidiaries and to discuss
the affairs, finances and accounts of the Company and its Subsidiaries with the
officers of the Company and its Subsidiaries, all at such reasonable times as
may be requested by the Investor; provided, however, that the Company and its
Subsidiaries shall not be obligated pursuant to this Section 10 to provide the
Investor access to any information which they reasonably consider to be a trade
secret or similar confidential information.

                                      -12-
<PAGE>   15

         11.      REPRESENTATION RIGHTS

         The Company covenants and agrees that, for so long as the Investor or
any of its affiliates holds any of the Shares:

                  (a) Observer and Advisory Rights. Commencing on October 12,
2000, the Investor shall, at its option, appoint a representative, chosen by the
Investor, to attend all meetings of the Company's Board of Directors in a
nonvoting observer and advisory capacity. The Company shall give such
representative copies of all notices, minutes, consents, and other materials
that is provides to its directors; provided, however, that (i) such
representative shall agree to hold in confidence and trust and to act in a
fiduciary manner with respect to all information so provided; and (ii) the
Company reserves the right to withhold any information and to exclude such
representative from any meeting or portion thereof if (aa) access to such
information or attendance at such meeting could adversely affect the
attorney-client privilege between the Company and its counsel, or (bb) if the
Investor or its representative is a direct competitor of the Company .

                  (b) Board of Directors. From and after the Third Tranche
Closing Date, and conditioned upon the Investor or its affiliates holding not
less than five percent (5%) of the Common Stock then outstanding, the Company
shall appoint and shall use commercially reasonable efforts to maintain the
election to the Board of Directors, a representative of the Investor, having
full voting rights. If the Investor holds less than five percent (5%) of the
Common Stock then outstanding, the Investor's representative shall nonetheless
be considered for appointment to the Company's Board of Directors, subject to
the Board's requirements and procedures. So long as a representative of the
Investor is appointed to serve as a director pursuant to this Section 11(b),
then the Investor shall cease to have the observer and advisory rights described
in Section 11(a) hereof.

         12.      ASSIGNMENT OF REGISTRATION RIGHTS.

         The registration rights under this Agreement (but not the additional
rights set forth in Section 11 above, which rights are expressly not assignable
by the Investor) shall be automatically assignable by the Investor to any
transferee of all or any portion of Registrable Securities if: (i) the
transferee agrees to execute a form of Joinder Agreement in the form of Exhibit
A attached hereto, and a copy of such Joinder Agreement is furnished to the
Company within a reasonable time after such assignment, (ii) the Company is,
within a reasonable time after such transfer or assignment, furnished with
written notice of (a) the name and address of such transferee or assignee, and
(b) the securities with respect to which such registration rights are being
transferred or assigned, (iii) following such transfer or assignment, the
further disposition of such securities by the transferee or assignee is
restricted under the Securities Act and applicable state securities laws, (iv)
such transfer shall have been made in accordance with the applicable
requirements of the Stock Purchase Agreement, and (v) such transferee shall be
an "accredited investor" as that term defined in Rule 501 of Regulation D
promulgated under the Securities Act.

         13.      AMENDMENT OF REGISTRATION RIGHTS.

         Provisions of this Agreement may be amended and the observance thereof
may be waived (either generally or in a particular instance and either
retroactively or prospectively), only with written consent of the Company and
the Investor (to the extent the Investor or any of its

                                      -13-
<PAGE>   16

affiliates still owns Registrable Securities). Any amendment or waiver effected
in accordance with this Section 13 shall be binding upon the Investor and the
Company.

         14.      TERMINATION OF REGISTRATION RIGHTS.

         The Investor shall not be entitled to exercise any right provided for
in Section 2 of this Agreement after the earlier of (i) two years following the
consummation of the sale of securities pursuant to a Registration Statement
filed by the Company under the Securities Act in connection with the initial
firm commitment underwritten offering of its securities to the public, or (ii)
such time as Rule 144 or another similar exemption under the Securities Act is
available for the sale of all of the Investor's shares during a three-month
period without registration.

         15.      GENERAL PROVISIONS.

                  (a) A person or entity is deemed to be a holder of Registrable
Securities whenever such person or entity owns of record such Registrable
Securities. If the Company receives conflicting instructions, notices or
elections from two or more persons or entities with respect to the same
Registrable Securities, the Company shall act upon the basis of instructions,
notice or election received from the registered owner of such Registrable
Securities.

                  (b) Any notices required or permitted to be given under the
terms hereof shall be sent by certified or registered mail (return receipt
requested) or delivered personally or by courier (including a recognized
overnight delivery service) or by facsimile and shall be effective five days
after being placed in the mail, if mailed by regular United States mail, or upon
receipt, if delivered personally or by courier (including a recognized overnight
delivery service) or by facsimile, in each case addressed to a party. The
addresses for such communications shall be:

                  If to the Company:

                  Probex Corp.
                  One Galleria Tower
                  13355 Noel Road, Suite 1200
                  Dallas, Texas 75240
                  Attention:  Chief Executive Officer
                  Facsimile:  (972) 980-8545

                  With a copy to:

                  Jenkens & Gilchrist, A Professional Corporation
                  1445 Ross Avenue
                  Suite 3200
                  Dallas, Texas 75202
                  Attention: Robert W. Dockery, Esq.
                  Facsimile:  (214) 855-4300

                                      -14-
<PAGE>   17

                  If to the Investor:
                  United Infrastructure Company, LLC
                  50 California Street, Suite 2200
                  San Francisco, California 94111
                  Attention:  Chief Operating Officer
                  Facsimile:  (415) 768-1714

                  With a copy to:

                  Bechtel Enterprises Holdings, Inc.
                  50 California Street, Suite 2200
                  San Francisco, California 94111
                  Attention:  Chief Counsel
                  Facsimile:  (415) 768-2233

                  (c) Failure of any party to exercise any right or remedy under
this Agreement or otherwise, or delay by a party in exercising such right or
remedy, shall not operate as a waiver thereof.

                  (d) This Agreement shall be enforced, governed by and
construed in accordance with the laws of the State of Texas applicable to
agreements made and to be performed entirely within such State. In the event
that any provision of this Agreement is invalid or unenforceable under any
applicable statute or rule of law, then such provision shall be deemed
inoperative to the extent that it may conflict therewith and shall be deemed
modified to conform with such statute or rule of law. Any provision hereof which
may prove invalid or unenforceable under any law shall not affect the validity
or enforceability of any other provision hereof. The parties hereto hereby
submit to the exclusive jurisdiction of the United States federal courts located
in Dallas, Texas with respect to any dispute arising under this Agreement or the
transactions contemplated hereby.

                  (e) This Agreement, the Stock Purchase Agreement and the
Additional Right to Purchase Agreement (including all schedules and exhibits
thereto) constitute the entire agreement among the parties hereto with respect
to the subject matter hereof and thereof. There are no restrictions, promises,
warranties or undertakings, other than those set forth or referred to herein and
therein. This Agreement, the Stock Purchase Agreement and the Additional Right
to Purchase Agreement supersede all prior agreements and understandings among
the parties hereto with respect to the subject matter hereof and thereof,
including without limitation that certain Term Sheet for Purchase of Probex
Common Stock Revision No. 1, dated as of October 11, 2000.

                  (f) Subject to the requirements of Section 12 hereof, this
Agreement shall inure to the benefit of and be binding upon the successors and
assigns of each of the parties hereto.

                  (g) The headings in this Agreement are for convenience of
reference only and shall not limit or otherwise affect the meaning hereof.

                  (h) This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original but all of which shall
constitute one and the same agreement. This Agreement, once executed by a party,
may be delivered to the other party hereto by facsimile transmission of a copy
of this Agreement bearing the signature of the party so delivering this
Agreement.

                                      -15-
<PAGE>   18

                  (i) Each party shall do and perform, or cause to be done and
performed, all such further acts and things, and shall execute and deliver all
such other agreements, certificates, instruments and documents, as the other
party may reasonably request in order to carry out the intent and accomplish the
purposes of this Agreement and the consummation of the transactions contemplated
hereby.

                  (j) The language used in this Agreement will be deemed to be
the language chosen by the parties to express their mutual intent, and no rules
of strict construction will be applied against any party.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK.]

                                      -16-
<PAGE>   19

         IN WITNESS WHEREOF, the Company and the Investor have caused this
Agreement to be duly executed as of the date first above written.

                                   PROBEX CORP.,
                                   a Delaware corporation

                                   By: /s/ JOHN N. BROBJORG
                                      ---------------------
                                       John N. Brobjorg
                                       Corporate Controller

                                   UNITED INFRASTRUCTURE COMPANY, LLC,
                                   a Delaware limited liability company

                                   By: /s/ NORA A. BLUM
                                      ---------------------
                                       Nora A. Blum
                                       Authorized Person

                                      -17-
<PAGE>   20

                                    EXHIBIT A

          Form of Registration and Investor's Rights Joinder Agreement

Probex Corp.
13355 Noel Road, Suite 1200
Dallas, Texas 75240

Attention:  Secretary

Ladies & Gentlemen:

         In consideration of the transfer to the undersigned of ____________
shares of the common stock of Probex Corp., a corporation organized under the
laws of the State of Delaware (the "Company"), the undersigned represents that
[he][she][it] is a permitted transferee of [insert name of transferor] and
agrees that, as of the date written below, [he][she][it] shall become a party
to, and an Investor as defined in that certain Registration and Investor's
Rights Agreement, dated as of February 2, 2001, as such agreement may have been
amended from time to time (the "Agreement"), between the Company and United
Infrastructure Company, LLC, a Delaware limited liability company, and shall be
fully bound by, and subject to, all of the covenants, terms and conditions of
the Agreement, as though a party thereto.

         Executed as of the ____ day of __________, ______ .

             SIGNATORY:
                       -------------------------

             Address:
                     ---------------------------

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

             ACKNOWLEDGED AND ACCEPTED:

                         PROBEX CORP.

                         By:
                             --------------------------
                         Name:
                               ------------------------
                         Title:
                                -----------------------

                                       -a-<PAGE>   1
                                                                    EXHIBIT 10.2

                                                 ALLSTATE LIFE INSURANCE COMPANY
                                                                 LOAN NO. 121977

                      DEED OF TRUST, ASSIGNMENT OF LEASES,

                     RENTS AND CONTRACTS, SECURITY AGREEMENT

                                       AND

                                 FIXTURE FILING

                                     BETWEEN

             ROYAL BODYCARE, INC., A NEVADA CORPORATION, AS TRUSTOR,

                           ROBIN R. GREEN, AS TRUSTEE

                                       AND

                 ALLSTATE LIFE INSURANCE COMPANY, AS BENEFICIARY

                           DATED: March 16, 2001

                           LOAN AMOUNT: $3,000,000.00

                           PROPERTY ADDRESS:
                           2301 Crown Court
                           Irving, TX 75038
<PAGE>   2
                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                       Page
<S>                                                                                                    <C>
ARTICLE 1 - COVENANTS OF TRUSTOR ...................................................................      5
    Section 1.1 - Performance of Obligations Secured ...............................................      5
    Section 1.2 - Insurance ........................................................................      5
    Section 1.3 - Condemnation .....................................................................      6
    Section 1.4 - Damage to Property ...............................................................      7
    Section 1.5 - Escrow Fund for Condemnation and Insurance Proceeds ..............................      9
    Section 1.6 - Taxes, Liens and other Items .....................................................     10
    Section 1.7 - Assignment of Leases, Contracts, Rents and Profits ...............................     11
    Section 1.8 - Acceleration Upon Sale or Encumbrance ............................................     15
    Section 1.9 - Preservation and Maintenance of Property .........................................     15
    Section 1.10 - Offset Certificates .............................................................     16
    Section 1.11 - Trustee's Costs and Expenses ....................................................     16
    Section 1.12 - Protection of Security; Costs and Expenses ......................................     16
    Section 1.13 - Trustor's Covenants Respecting Collateral .......................................     17
    Section 1.14 - Covenants Regarding Financial Statements ........................................     19
    Section 1.15 - Environmental Covenants .........................................................     20
ARTICLE 2 - EVENTS OF DEFAULT ......................................................................     21
    Section 2.1 - Monetary and Performance Defaults ................................................     21
    Section 2.2 - Bankruptcy, Insolvency, Dissolution ..............................................     22
    Section 2.3 - Misrepresentation ................................................................     22
    Section 2.4 - Default under Subordinate Loans ..................................................     22
ARTICLE 3 - REMEDIES ...............................................................................     22
    Section 3.1 - Acceleration .....................................................................     22
    Section 3.2 - Entry ............................................................................     23
    Section 3.3 - Judicial Action ..................................................................     24
    Section 3.4 - Non-Judicial .....................................................................     24
    Section 3.5 - Posting ..........................................................................     24
    Section 3.6 - Statutes .........................................................................     25
    Section 3.7 - Installment Sale .................................................................     26
    Section 3.8 - Rescission of Notice of Default ..................................................     26
    Section 3.9 - Beneficiary's Remedies Respecting Collateral .....................................     26
    Section 3.10 - Proceeds of Sales ...............................................................     27
    Section 3.11 - Condemnation and Insurance Proceeds .............................................     27
    Section 3.12 - Waiver of Marshalling, Rights of Redemption, Homestead, Valuation and Notice ....     27
    Section 3.13 - Remedies Cumulative .............................................................     28
    Section 3.14 - Recourse ........................................................................     28
ARTICLE 4 - MISCELLANEOUS ..........................................................................     29
    Section 4.1 - Severability .....................................................................     29
    Section 4.2 - Certain Charges and Brokerage Fees ...............................................     29
    Section 4.3 - Notices ..........................................................................     29
</TABLE>

                                       i
<PAGE>   3
<TABLE>
<S>                                                                                                    <C>
    Section 4.4 - Trustor Not Released; Certain Trustee Acts .......................................     31
    Section 4.5 - Inspection .......................................................................     31
    Section 4.6 - Release or Cancellation ..........................................................     31
    Section 4.7 - Statute of Limitations ...........................................................     32
    Section 4.8 - Interpretation ...................................................................     32
    Section 4.9 - Captions .........................................................................     32
    Section 4.10 - Consent .........................................................................     32
    Section 4.11 - Delegation to Subagents .........................................................     32
    Section 4.12 - Successors and Assigns ..........................................................     32
    Section 4.13 - Governing Law ...................................................................     33
    Section 4.14 - Substitution of Trustee .........................................................     33
    Section 4.15 - Changes in Taxation .............................................................     34
    Section 4.16 - Maximum Interest Rate ...........................................................     34
    Section 4.17 - Time of Essence .................................................................     34
    Section 4.18 - Reproduction of Documents .......................................................     34
    Section 4.19 - No Oral Modifications ...........................................................     35
    Section 4.20 - Trustee Provisions ..............................................................     35
</TABLE>

                                       ii
<PAGE>   4
            DEED OF TRUST, ASSIGNMENT OF LEASES, RENTS AND CONTRACTS,
                      SECURITY AGREEMENT AND FIXTURE FILING

           THIS DEED OF TRUST, ASSIGNMENT OF LEASES, RENTS AND CONTRACTS,
SECURITY AGREEMENT AND FIXTURE FILING is made as of March 16, 2001, from ROYAL
BODYCARE, INC., a Nevada corporation, whose mailing address is 2301 Crown Court,
Irving, Texas 75038 (herein "Trustor") to ROBIN R. GREEN, a Texas resident,
whose mailing address is c/o Akin, Gump, Strauss, Hauer & Feld, L.L.P., 1700
Pacific Avenue, Suite 4100, Dallas, Texas 75201-4675 (herein "Trustee"), in
favor of ALLSTATE LIFE INSURANCE COMPANY, an Illinois insurance corporation,
whose mailing address is Allstate Plaza South, 3075 Sanders Road, Suite G5C,
Northbrook, Illinois, 60062 (herein "Beneficiary").

           TRUSTOR, in consideration of the indebtedness herein recited and the
trust herein created, hereby irrevocably grants, conveys, transfers and assigns
to Trustee, its successors and assigns, in trust, with power of sale and right
of entry and possession, all of Trustor's estate, right, title and interest in,
to and under that certain real property located in Dallas County, Texas, more
particularly described on Exhibit A attached hereto and incorporated herein by
this reference (the "Land");

           TOGETHER with all of Trustor's now or hereafter acquired estate,
right, title and interest in, to and under all buildings, structures,
improvements and fixtures now existing or hereafter erected on the Land and all
right, title and interest, if any, of Trustor in and to: the streets and roads,
opened or proposed, abutting the Land to the center lines thereof, and strips
within or adjoining the Land, the air space and right to use said air space
above the Land, all rights of ingress and egress on or within the Land, all
easements, rights and appurtenances thereto or used in connection with the Land,
including, without limitation, all lateral support, alley and drainage rights,
all revenues, income, rents, cash or security deposits, advance rental deposits,
and other benefits thereof or arising from the use or enjoyment of all or any
portion thereof (subject however to the rights and authorities given herein to
Trustor to collect and apply such revenues, and other benefits), all interests
in and rights, royalties and profits in connection with all minerals, oil and
gas and other hydrocarbon substances thereon or therein, and water stock, all
options to purchase or lease, all development or other rights relating to the
Land or the operation thereof, or used in connection therewith, including all
Trustor's right, title and interest in all fixtures, attachments, partitions,
machinery, equipment, building materials, appliances and goods of every nature
whatever now or hereafter located on, or attached to, the Land, all of which,
including replacements and additions thereto, shall, to the fullest extent
permitted by law and for the purposes of this Deed of Trust, be deemed to be
real property and, whether affixed or annexed thereto or not, be deemed
conclusively to be real property; and Trustor agrees to execute and deliver,
from time to time, such further instruments and documents as may be required by
Beneficiary to confirm the legal operation and effect of this Deed of Trust on
any of the foregoing. All of the foregoing property described in this section
(the "Improvements") together with the Land, shall be hereinafter referred to as
the "Property").
<PAGE>   5
           TOGETHER with all of Trustor's now existing or hereafter acquired
right, title and interest in the following:

                  A. All equipment, fixtures, inventory, goods, instruments,
appliances, furnishings, machinery, tools, raw materials, component parts, work
in progress and materials, and all other tangible personal property of
whatsoever kind, used or consumed in the improvement, use or enjoyment of the
Property now or any time hereafter owned or acquired by Trustor, wherever
located and all products thereof whether in possession of Trustor or whether
located on the Property or elsewhere;

                  B. To the extent such general intangibles are assignable, all
general intangibles relating to design, development, operation, management and
use of the Property, including, but not limited to, (1) all names under which or
by which the Property may at any time be owned and operated or any variant
thereof, and all goodwill in any way relating to the Property and all service
marks and logotypes used in connection therewith, (2) all permits, licenses,
authorizations, variances, land use entitlements, approvals, consents,
clearances, and rights obtained from governmental agencies issued or obtained in
connection with the Property, (3) all permits, licenses, approvals, consents,
authorizations, franchises and agreements issued or obtained in connection with
the construction, use, occupation or operation of the Property, (4) all
materials prepared for filing or filed with any governmental agency, and (5) the
books and records of Trustor relating to construction or operation of the
Property;

                  C. All shares of stock or partnership interest or other
evidence of ownership of any part of the Property that is owned by Trustor in
common with others, including all water stock relating to the Property, if any,
and all documents or rights of membership in any owners' or members' association
or similar group having responsibility for managing or operating any part of the
Property provided, however, that the foregoing shall not include any ownership
interests in the Trustor;

                  D. All accounts, deposit accounts, tax and insurance escrows
held pursuant to this Deed of Trust, accounts receivable, instruments,
documents, documents of title, general intangibles, rights to payment of every
kind, all of Trustor's rights, direct or indirect, under or pursuant to any and
all construction, development, financing, guaranty, indemnity, maintenance,
management, service, supply and warranty agreements, commitments, contracts,
subcontracts, insurance policies, licenses and bonds now or anytime hereafter
arising from construction on the Land or the use or enjoyment of the Property to
the extent such are assignable; and

                  E. All condemnation proceeds and insurance proceeds related to
the Property.

           TOGETHER with all additions to, substitutions for and the products of
all of the above, and all proceeds therefrom, whether cash proceeds or noncash
proceeds, received when any such property (or the proceeds thereof) is sold,
exchanged, leased, licensed, or otherwise disposed of, whether voluntarily or
involuntarily. Such proceeds shall include any of the foregoing specifically
described property of Trustor acquired with cash proceeds. Together with, and
without limiting

                                       2
<PAGE>   6
the above items, all Goods, Accounts, Documents, Instruments, Money, Chattel
Paper and General Intangibles arising from or used in connection with the
Property, as those terms are defined in the Uniform Commercial Code from time to
time in effect in the State of Texas. (All of the foregoing including such
products and proceeds thereof, are collectively referred to as "Collateral".)

           Notwithstanding anything to the contrary set forth herein, it is
agreed that the Property and Collateral described in and encumbered by this
instrument specifically does not include, and the Beneficiary/Secured Party is
neither granted nor shall it possess or claim, any interest in and to any of the
following properties and/or assets of Trustor/Debtor (provided, however, that
Trustor/Debtor hereby covenants and agrees that no pledges or security interests
in respect to the following-described items shall be granted or encumber the
following-described items other than purchase money security interests, vendor's
liens and/or first lien financing with respect to such items):

         (a) Any and all furniture, trade fixtures, equipment, records,
intangible property rights and other personal property of Trustor/Debtor which
is not affixed to the Land or the Improvements (including, without limitation,
the various items listed on Schedule 1 attached hereto and made a part hereof
for all purposes);

         (b) Any and all revenues and income earned, received and/or realized by
Trustor/Debtor in the ordinary course of its business (as distinguished from any
revenues or income received from the lease, sale or other transfer or conveyance
of the Land or Improvements or either of same);

         (c) All accounts and contract rights of Trustor/Debtor arising in the
ordinary course of its business;

         (d) All general intangibles of the Trustor/Debtor;

         (e) All inventory of the Trustor/Debtor; and

         (f) All leased furniture, trade fixtures, equipment and other leased
personal property of Trustor/Debtor.

           The personal property in which Beneficiary has a security interest
includes goods which are or shall become fixtures on the Property. This Deed of
Trust is intended to serve as a fixture filing pursuant to the terms of the
applicable provisions of the Uniform Commercial Code of the State of Texas and
Exhibit B attached hereto and made a part hereof. This filing is to be recorded
in the real estate records of the appropriate city, town or county in which the
Property is located. In that regard, the following information is provided:

               Names of Debtor:               ROYAL BODYCARE, INC.
                                              a Nevada corporation

               Address of Debtor:               See Section 4.3 hereof

                                       3
<PAGE>   7
               Name of Secured Party:         ALLSTATE LIFE INSURANCE COMPANY,
                                              an Illinois insurance corporation

               Address of Secured Party:        See Section 4.3 hereof.

           Trustor warrants and agrees that there is no financing statement
covering the foregoing Collateral, the Property, or any part thereof, on file in
any public office.

           TO HAVE AND TO HOLD the Property and Collateral hereby conveyed or
mentioned and intended so to be, unto Trustee and to his substitutes or
successors forever, and Trustor does hereby bind itself, its successors and
assigns to warrant and forever defend, all and singular, the Property unto the
Trustee, his successors and assigns against every person whomsoever lawfully
claiming or to claim the same, or any part thereof, by, through or under
Trustor, but not otherwise, subject only to the specific matters, if any, set
forth on Exhibit C attached hereto.

           HOWEVER, THIS IS A DEED OF TRUST, AND THIS CONVEYANCE IS MADE IN
TRUST FOR THE FOLLOWING USES AND TRUST, AND FOR NO OTHER PURPOSES, AND FOR THE
PURPOSE OF SECURING, IN SUCH ORDER OF PRIORITY AS BENEFICIARY MAY ELECT:

                  A. The repayment of the indebtedness evidenced by that certain
Mortgage Note ("Note") of even date herewith with a maturity date of April 1,
2019 executed by Trustor and CLINTON H. HOWARD and payable to the order of
Beneficiary, in the principal sum of THREE MILLION AND NO/100 DOLLARS
($3,000,000.00) with interest thereon, as provided therein and all late charges,
loan fees, commitment fees, Prepayment Premiums (as described in the Note), and
all extensions, renewals, modifications, amendments and replacements thereof;

                  B. The payment of all other sums which may be advanced by or
otherwise be due to Trustee or Beneficiary under any provision of this Deed of
Trust or under any other instrument or document referred to in clause C. below,
with interest thereon at the rate provided herein or therein;

                  C. The performance of each and every covenant and agreement of
Trustor contained (1) herein, in the Note, or in any note evidencing a Future
Advance (as hereinafter defined), and (2) in the obligations of Trustor upon any
and all pledge or other security agreements, loan agreements, disbursement
agreements, supplemental agreements (the foregoing shall not include the
Commitment Letter between Trustor and Beneficiary), assignments (both present
and collateral) and all instruments of indebtedness or security now or hereafter
executed by Trustor in connection with any indebtedness referred to in clauses
A., B., or D. of this section or for the purpose of supplementing or amending
this Deed of Trust or any instrument secured hereby (all of the foregoing in
this clause C., as the same may be amended, modified or supplemented from time
to time, being referred to hereinafter as "Related Agreements") and all costs
and expenses, including reasonable attorneys' fees actually incurred by
Beneficiary with

                                       4
<PAGE>   8
respect to all such documents, including, without limitation, the negotiation
and drafting of any loan settlement or workout agreement; and

                  D. The repayment of any other loans or advances, with interest
thereon, hereafter made to Trustor (or any successor in interest to Trustor as
the owner of the Property or any part thereof) by Beneficiary when the
promissory note evidencing the loan or advance specifically states that said
note is secured by this Deed of Trust, together with all extensions, renewals,
modifications, amendments and replacements thereof (herein and in the Related
Agreements "Future Advance").

                                   ARTICLE 1
                              COVENANTS OF TRUSTOR

           To protect the security of this Deed of Trust, Trustor covenants and
agrees as follows:

         Section 1.1__________Performance of Obligations Secured. Trustor shall
promptly pay when due the principal of and interest on the indebtedness
evidenced by the Note, the principal of and interest on any Future Advance, any
Prepayment Premium and late charges provided for in the Note or in any note
evidencing a Future Advance, and shall further perform fully and in a timely
manner all other obligations of Trustor contained herein or in the Note or in
any note evidencing a Future Advance or in any of the Related Agreements.

         Section 1.2 Insurance. For all times during the period there remains
any indebtedness under the Note, or any and all other indebtedness (including
without limitation Future Advances) secured by this Deed of Trust, Trustor shall
keep the Property insured against all risks or hazards as Beneficiary may
require. Such insurance shall be in policy form, amount and coverage
satisfactory to Beneficiary, including, but not limited to:

                  A. Fire and extended coverage property damage insurance,
including, but not limited to all risk insurance, in an amount equal to the full
replacement value of the Improvements, without coinsurance or deducting for
depreciation, containing a waiver of subrogation clause and a deductible amount
acceptable to Beneficiary;

                  B. Public liability insurance, in such form, amount and
deductible satisfactory to Beneficiary, and naming Beneficiary c/o Beneficiary's
servicing agent, if any, as additional insured covering Beneficiary's interest
in the Property;

                  C. Business interruption or rent loss insurance endorsement in
an amount at least equal to 100% of the sum of: annual debt service on the Note,
the annual debt service on any other financing permitted by Beneficiary, ground
rents, if any, and operating expenses, including, without limitation, real
estate taxes and assessments and insurance, for the Property;

                  D. Flood insurance required by and obtainable through the
National Flood Insurance Program sufficient to cover any damage which may be
anticipated in the event of flood

                                       5
<PAGE>   9
unless Trustor has provided Beneficiary evidence satisfactory to Beneficiary
that no portion of the Property is located within the boundaries of the 100 year
flood plain;

                  E. "Dram shop" insurance if alcoholic beverages are sold on
the Property;

                  F. Boiler and machinery insurance when risks covered thereby
are present and Beneficiary requires such insurance; and

                  G. Earthquake insurance if Beneficiary requires such
insurance.

The insurance coverages described in subsections A., C., D., F., and G. above
shall name Beneficiary c/o Beneficiary's servicing agent, if any, under a
standard noncontributory mortgagee clause or otherwise directly insure
Beneficiary's interest in the Property. All losses under said insurance shall be
payable to Beneficiary in the manner provided in Sections 1.4 and 1.5 hereof.
All policies of insurance required under this Section 1.2 shall be with a
company or companies with a policy rating of A and financial rating of at least
Class X in the most current edition of Best's Insurance Reports and authorized
to do business in the state in which the Property is located. All policies of
insurance shall provide that they will not be canceled or modified without
thirty (30) days' prior written notice to Beneficiary. True copies of the above
mentioned insurance policies or evidence of such insurance (in the form of
Accord Form 27) satisfactory to Beneficiary shall be delivered to and held by
Beneficiary. True copies of all renewal and replacement policies or evidences of
such insurance forms (Accord Form 27) thereof shall be delivered to Beneficiary
at least fifteen (15) days before the expiration of the expiring policies. If
any renewal or replacement policy is not obtained as required herein,
Beneficiary is authorized to obtain the same in Trustor's name and at Trustor's
expense. Beneficiary shall not by the fact of failing to obtain any insurance,
incur any liability for or with respect to the amount of insurance carried, the
form or legal sufficiency of insurance contracts, solvency of insurance
companies, or payment or defense of lawsuits, and Trustor hereby expressly
assumes full responsibility therefor and all liability, if any, with respect
thereto.

         Section 1.3 Condemnation.

                  A. Immediately upon obtaining knowledge of the commencement or
threat of any action in connection with (1) any condemnation, (2) any other
taking of the Property or any part thereof by any public authority or private
entity having the power of eminent domain, or (3) any conveyance in lieu of such
condemnation or taking of the Property or any part thereof ("Condemnation"),
Trustor shall notify Beneficiary in writing but in no event later than ten (10)
days after Trustor obtains knowledge of the commencement of or threat of a
Condemnation. Beneficiary shall have the right, but not the obligation, to
participate in any proceedings relating to any Condemnation and may, in its
reasonable discretion, consent or withhold its consent to any settlement,
adjustment, or compromise of any claims arising from the Condemnation and no
such settlement, adjustment or compromise shall be final or binding upon
Beneficiary without Beneficiary's prior consent which consent shall not be
unreasonably withheld, conditioned or delayed.

                                       6
<PAGE>   10
                  B. If all or part of the Property is taken by Condemnation and
Beneficiary in its reasonable judgment determines that the remainder of the
Property, if any, cannot be operated as an economically viable entity at
substantially the same level of operations as immediately prior to such
Condemnation, then all proceeds of the Condemnation ("Condemnation Proceeds")
shall be paid over to Beneficiary and shall be applied first toward
reimbursement of the actual costs and expenses (including reasonable attorneys'
fees) of Beneficiary, if any, in connection with the recovery of such
Condemnation Proceeds, and then, in the sole and absolute discretion of
Beneficiary and without regard to the adequacy of its security under this Deed
of Trust, shall be applied against all amounts due herein under the Note and any
remaining Condemnation Proceeds shall be released to the Trustor. Any prepayment
of the Note under this Section 1.3(B) shall not be subject to the Prepayment
Premium or the No-Prepayment Period; however, any partial prepayment shall not
entitle Trustor to prepay the portion of the Note remaining unpaid after
application of the Condemnation Proceeds. Prepayment of the balance shall
continue to be subject to the terms and conditions of the Note, including the
No-Prepayment Period and the Prepayment Premium described therein.

                  C. If less than all of the Property is taken by Condemnation
and Beneficiary in its reasonable judgment determines that the remainder of the
Property can be operated as an economically viable entity at substantially the
same level of operations as immediately prior to such Condemnation, then Trustor
shall diligently restore the Property to a condition and use as close as
possible to its condition immediately prior to the Condemnation and all
Condemnation Proceeds shall be made available to Trustor for such restoration.
If the estimated cost of restoration, as reasonably determined by Beneficiary,
is equal to or less than $50,000, all Condemnation Proceeds shall be released
directly to Trustor for restoration of the Property. If the estimated cost of
restoration exceeds $50,000, all Condemnation Proceeds shall be deposited into
an escrow fund in accordance with Section 1.5 below. Beneficiary shall have the
right to obtain an opinion of an independent contractor or engineer reasonably
satisfactory to Beneficiary, at Trustor's expense, to estimate the cost to
restore the remaining portion of the Property. If the amount of the Condemnation
Proceeds is not sufficient to restore the Property based on the opinion of an
independent contractor or engineer, subject to revision as restorations are
made, Trustor shall be obligated to pay the difference toward the restoration of
the Property.

                  D. If an Event of Default exists at any time from the time of
a Condemnation through the completion of restoration and payment of any
Condemnation Proceeds, the use of the Condemnation Proceeds shall be governed by
the remedies set forth in Article III below. If an event has occurred which with
notice, the passage of time, or both, could become an Event of Default, then,
the Condemnation Proceeds shall be held by Beneficiary or in the Escrow Fund (as
defined below), as applicable, pending cure of such event.

         Section 1.4 Damage to Property.

                  A. Promptly upon obtaining knowledge of any damage to the
Property or any part thereof with an estimated cost of restoration in excess of
$5,000, but in no event later than five (5) days after Trustor obtains such
knowledge, Trustor shall notify Beneficiary of such damage in writing. Trustor
shall diligently restore the Property to the same condition that existed

                                       7
<PAGE>   11
immediately prior to the damage whether or not insurance proceeds are sufficient
for such restoration. All proceeds of any insurance on the Property ("Insurance
Proceeds") received by Trustor shall be applied to such restoration. Beneficiary
shall have the right to obtain an opinion of an independent contractor or
engineer reasonably satisfactory to Beneficiary, at Trustor's expense, to
estimate the cost to restore the Property to its original condition, which
opinion may be revised as restorations are made. If the amount of the insurance
proceeds is not sufficient to restore the Property based on an independent
contractor's or engineer's opinion, subject to revision as restorations are
made, Trustor shall be obligated to pay the difference toward the restoration of
the Property.

                  B. If the estimated cost of restoration is equal to or less
than $50,000, Trustor shall promptly settle and adjust any claims under the
insurance policies which insure against such risks and, upon receipt of the
Insurance Proceeds, Trustee and Beneficiary shall deliver such to Trustor for
use in restoration of the Property.

                  C. If the estimated cost of restoration is greater than
$50,000, Beneficiary shall have the right, but not the obligation, to
participate in the settlement of the insurance claims and may, in its reasonable
discretion, consent or withhold its consent to any settlement, adjustment, or
compromise of such insurance claims and no such settlement, adjustment, or
compromise shall be final or binding upon Beneficiary without its prior consent
(which consent shall not be unreasonably withheld, delayed or conditioned). Upon
settlement of insurance claims in excess of $50,000 and if Trustor can
demonstrate to the reasonable satisfaction of Beneficiary that the projected
ratio of Net Operating Income, as defined below, to annual debt service due
under the Note and any other notes secured by the Property ("Debt Coverage
Ratio") will be at least 105% for the twelve months immediately following
reconstruction of the Property, the insurance proceeds shall be deposited into
an escrow fund in accordance with Section 1.5 below.

As used in this Deed of Trust, "Net Operating Income" shall mean:

                           (i) all gross receipts received or anticipated (as
may be applicable) from tenants in the Property and paying rent under leases in
effect during the applicable twelve month period, calculated on a cash basis
which reflects only the income actually received during the previous
twelve-month period as of the date of such calculation, and any income
anticipated to be received during the following twelve-month period based on
leases in effect as of the date of calculation, for such time as those leases
are contracted to remain in effect without expiration by their terms or optional
termination by the tenant (unless the tenant has waived its termination rights
in writing or the term of the lease has been extended in writing), including
without limitation all amounts to be received from tenants as payment of
operating expenses but not including refundable deposits, lease termination
payments, excess tenant improvement and leasing commission payments included as
additional rent, principal or interest payments received by Trustor on loans to
tenants and fees and reimbursements for work performed for tenants by Trustor,
less:

                           (ii) all amounts, calculated on a cash basis, for the
operation or maintenance of the Property for the applicable twelve-month period,
including ground rents, the

                                       8
<PAGE>   12
cost of property management (which shall be no less than 3% of gross
collections), maintenance, cleaning, security, landscaping, parking maintenance
and utilities, and other costs and expenses approved in writing by Beneficiary
and amounts reasonably estimated by Beneficiary for the payment of real estate
taxes and assessments and other taxes related to the operation of the Property,
insurance premiums, necessary repairs and future replacements of equipment;
payments under the Note shall not be included in Net Operating Income.

                  D. If in the reasonable judgment of Beneficiary the conditions
of Section 1.4(C) cannot be satisfied, then at any time from and after the
occurrence of the damage, upon written notice to Trustor, Beneficiary may
declare the entire balance of the Note and/or any Future Advances then
outstanding and accrued and unpaid interest thereon, and all other sums or
payments required thereunder or under this Deed of Trust, without any Prepayment
Premium, to be immediately due and payable, and all insurance proceeds shall be
applied by Beneficiary first to the reimbursement of any costs or expenses
incurred by Beneficiary in connection with the damage or the determination to be
made hereunder, and then to the payment of the indebtedness secured by this Deed
of Trust in such order as Beneficiary may determine in its sole discretion.

                  E. If an Event of Default exists at any time from the time of
damage through the completion of restoration and the final release of any
Insurance Proceeds to Trustor, the use of the Insurance Proceeds shall be
governed by the remedies set forth in Article III below. If an event has
occurred which with notice, the passage of time, or both, could become an Event
of Default, then the Insurance Proceeds shall be held by Beneficiary or in the
Escrow Fund, as applicable, pending cure of such event prior to the expiration
of any applicable cure or grace period.

         Section 1.5 Escrow Fund for Condemnation and Insurance Proceeds.

                  A. In the circumstances indicated above in subsections 1.3(C)
and 1.4(C), all Condemnation Proceeds and Insurance Proceeds shall be deposited
in an interest bearing escrow fund ("Escrow Fund"). The escrow agent and the
form of the escrow agreement shall be reasonably satisfactory to Beneficiary and
Trustor. The costs and fees of such escrow agent shall be paid by Trustor. If
the amount of the Proceeds is not sufficient to restore the Property based on an
independent contractor's or engineer's opinion obtained by Beneficiary at
Trustor's expense, subject to revision as restorations are made, Trustor shall
be obligated to deposit in the Escrow Fund the difference between the
contractor's or engineer's estimate and the amount of the Proceeds or deliver to
the escrow agent an irrevocable, unconditional letter of credit issued in the
amount of such difference in a form and by a financial institution reasonably
acceptable to Beneficiary or other cash equivalent acceptable to Beneficiary.
The Trustor's funds, if necessary, and the Proceeds shall be deposited into the
Escrow Fund and shall not be released by the escrow agent unless used to restore
the Property to its condition immediately prior to the occurrence of such
condemnation or damage and unless a disbursement agent satisfactory to
Beneficiary and Trustor approves such disbursements from time to time. The
escrow agreement shall provide that the escrow agent shall only disburse funds
to Trustor so long as the restoration work is being diligently performed by
Trustor and only after (1) Beneficiary has approved the plans and specifications
for the restoration of the Property (which approval shall not be unreasonably

                                       9
<PAGE>   13
withheld, conditioned or delayed); (2) Trustor has executed a contract
acceptable to Beneficiary with a general contractor reasonably acceptable to
Beneficiary for the restoration of the Property; (3) the general contractor has
submitted lien waivers and/or releases, executed by the general contractor and
all subcontractors which may be partial to the extent of partial payments and
which, in the case of releases, may be contingent upon payment if the escrow
agent makes payment directly to such contractor or subcontractor; (4) Trustor
has furnished Beneficiary with an endorsement to its title policy showing no
additional exceptions (other than those approved by Beneficiary) or if such
endorsement is not available, a new mortgagee policy of title insurance showing
no additional exceptions (other than those approved by Beneficiary); and (5)
Trustor has submitted such other documents and information as may be requested
by Beneficiary to determine that the work to be paid for has been performed in
accordance with the plans and specifications approved by Beneficiary. If any
requisition for payment of work performed is for an amount which would result in
the remaining balance of the Escrow Fund to be insufficient to complete the
remainder of the restoration, Trustor shall advance the requisite amount in cash
to the Escrow Fund immediately upon written request from the disbursement agent
or Beneficiary.

                  B. Any Condemnation Proceeds and any interest thereon
remaining in the Escrow Fund after payment of the costs to complete the
restoration of the Property pursuant to the approved plans and specifications
and the costs of the escrow agent shall be paid first, to Trustor to the extent
of any funds of Trustor's contributed to the restoration pursuant to Section
1.5, provided there is no Event of Default or an event which with notice, the
passage of time, or both, could become an Event of Default, and thereafter at
Beneficiary's option, any remaining Condemnation Proceeds may be applied to the
partial payment or prepayment of the Note (without payment of any Prepayment
Premium and notwithstanding any No-Prepayment Period) or may be returned to the
Trustor. If an Event of Default exists, the use of the Condemnation Proceeds
shall be governed by Article III below. If, however, an event exists which with
notice, the passage of time, or both, could become an Event of Default, the
remaining balance in the Escrow Fund shall be held by the escrow agent pending
cure of the event prior to the expiration of any applicable cure or grace
period.

                  C. Any Insurance Proceeds and any interest thereon remaining
in the Escrow Fund after payment of the costs to complete the restoration of the
Property pursuant to the approved plans and specifications and the costs of the
escrow agent, provided there is no Event of Default or an event which with
notice, the passage of time, or both, could become an Event of Default, shall be
paid first, to Trustor to the extent of any funds of Trustor's contributed to
the restoration pursuant to Section 1.5, and thereafter, any remaining Insurance
Proceeds shall be held in the escrow as additional collateral security for the
Note, provided there is no Event of Default or an event which with notice, the
passage of time, or both, could become an Event of Default. The entire amount
remaining in such escrow shall be paid to Beneficiary upon maturity of the Note
for application to the indebtedness secured by this Deed of Trust and the
balance, if any, shall be paid to Trustor. If an Event of Default exists at any
time from the time of completion of restoration and the final application of any
Insurance Proceeds, the use of the Insurance Proceeds shall be governed by
Article III below.

         Section 1.6 Taxes, Liens and other Items.

                                       10
<PAGE>   14
                  A. Trustor shall pay any and all taxes, bonds, assessments,
fees, liens, charges, fines, impositions and any accrued interest or penalty
thereon, and any and all other items which are attributable to or affect the
Property by making payment prior to delinquency directly to the payee thereof
and promptly furnish copies of paid receipts for these to Beneficiary. Trustor
shall promptly discharge or bond around any lien or encumbrance on the Property
whether said lien or encumbrance has or may attain priority over this Deed of
Trust or not. This Deed of Trust shall be the sole encumbrance on the Property
and, if with the consent of Beneficiary it is not the sole encumbrance, then it
shall be prior to any and all other liens or encumbrances on the Property.
Provided that the priority of this Deed of Trust is not in any way affected,
Trustor may in good faith protest the payment of any tax or lien which it
believes is unwarranted or excessive and may defer payment of such tax pending
conclusion of such contest if legally permitted to do so and provided
Beneficiary's security is not jeopardized in Beneficiary's sole opinion.

                  B. As further security for the payment of the Note and the
payment of real estate taxes, regular or special assessments and insurance
premiums, Trustor shall be required to deposit 1/12 of the annual amounts of
such items as estimated by Beneficiary, with each monthly payment on the Note,
so that Beneficiary will hold a sufficient amount to pay all such charges not
less than thirty (30) days prior to the date on which such items become due and
payable. Beneficiary shall be furnished evidence to allow it to estimate such
amounts, including paid receipts or annual insurance premium statements,
assessment notices and tax receipts. All funds so deposited shall, until applied
to the payment of the aforesaid items, as hereinafter provided, be held by
Beneficiary without interest (except to the extent required under applicable
law) and may be commingled with other funds of Beneficiary. All funds so
deposited shall be applied to the payment of the aforesaid items only upon the
satisfaction of the following conditions: (1) no Event of Default or event,
which with notice or the passage of time or both could become an Event of
Default, shall have occurred; (2) Beneficiary shall have sufficient funds to pay
the full amounts of such items (which funds may include amounts paid solely for
such purpose by Trustor in addition to the escrowed funds); and (3) Trustor
shall have furnished Beneficiary with prior written notification that such items
are due and with the bills and invoices therefor in sufficient time to pay the
same before any penalty or interest attaches and before policies of insurance
lapse, as the case may be, and shall have deposited any additional funds as
Beneficiary may determine as necessary to pay such items.

                  C. Beneficiary expressly disclaims any obligation to pay the
aforesaid items unless and until Trustor complies with all of the provisions set
forth in subsections 1.6(A) and (B). Trustor hereby pledges any and all monies
now or hereafter deposited pursuant to subsection 1.6(B) as additional security
for the Note and Related Agreements. If any Event of Default shall have
occurred, or if the Note shall be accelerated as herein provided, all funds so
deposited may, at Beneficiary's option, be applied as determined solely by
Beneficiary or to cure said Event of Default or as provided in this Section 1.6.
In no event shall Trustor claim any credit against the principal and interest
due hereunder for any payment or deposit for any of the aforesaid items.

         Section 1.7 Assignment of Leases, Contracts, Rents and Profits.

                                       11
<PAGE>   15
                  A. Trustor hereby absolutely, presently and unconditionally
grants, assigns, transfers, conveys and sets over to Beneficiary all of
Trustor's right, title and interest in and to the following whether arising
under the Leases, by statute, at law, in equity, or in any other way:

                           1. All of the leases of the Property which are in
effect on the date hereof, if any, and entered into or in effect from time to
time after the date hereof, including, without limitation, all amendments,
extensions, replacements, modifications and renewals thereof and all subleases,
concession agreements, any ground leases or ground subleases and all other
agreements affecting the same (the "Leases") and all guaranties thereunder;

                           2. All of the rents, income, profits, revenue,
judgments, condemnation awards, Insurance Proceeds, unearned insurance premiums
and any other fees or sums payable to Trustor or any other person as landlord
and other benefits and rights of the Property arising from the use, occupancy,
operation or management of all or any portion thereof or from all the Leases,
and any proceeds, deposits or security deposits relating thereto, including,
without limitation, any award to Trustor made hereafter in any court involving
any of the tenants under the Leases in any bankruptcy, insolvency, or
reorganization proceeding in any state or federal court, and Trustor's right to
appear in any action and/or to collect any such award or payment, and all
payments by any tenant in lieu of rent (collectively, "Rents and Profits")
subject to the exclusions set forth in the description of the Collateral and
Property hereinabove; and

                           3. All contracts, agreements, management, operating
and maintenance agreements, warranties, licenses, permits, guaranties and sales
contracts relating to the Property and the Collateral entered into by, or
inuring to the benefit of, Trustor (the "Contracts").

                  B. Notwithstanding the provisions of subsection 1.7(A), prior
to the occurrence of any Event of Default hereunder, Beneficiary shall not
exercise any of the rights or powers conferred upon Beneficiary by this Section
1.7, and, subject to subsection 1.7(F), Trustor shall have a license: to manage
the Property; to collect, receive and use all Rents and Profits in accordance
with the terms of the Leases; to let the Property and to take all actions which
a reasonable and prudent landlord would take in enforcing the provisions of the
Leases and Contracts; provided, however, that all amounts so collected shall be
applied toward operating expenses, real estate taxes and insurance relating to
the Property, capital repair items necessary to the operation of the Property,
and the payment of sums due and owing under the Note, and this Deed of Trust
prior to any other expenditure or distribution by Trustor and thereafter, so
long as no Event of Default has occurred and is continuing, as Trustor elects.
From and after the occurrence of an Event of Default (whether or not Beneficiary
shall have exercised Beneficiary's option to declare the Note immediately due
and payable), such license shall be automatically revoked without any action
required by Beneficiary. Any amounts received by Trustor or its agents in the
performance of any acts prohibited by the terms of this Deed of Trust, including
but not limited to any amounts received in connection with any cancellation,
modification or amendment of any of the Leases prohibited by the terms of this
Deed of Trust and any amounts received by Trustor as rents, income, issues or
profits from the Property from and after an Event of Default under this Deed of
Trust, the Note, or any of the other Related Agreements, shall be held by
Trustor as trustee for Beneficiary and all such amounts shall be accounted for
to

                                       12
<PAGE>   16
Beneficiary and shall not be commingled with other funds of the Trustor. Any
person acquiring or receiving all or any portion of such trust funds shall
acquire or receive the same in trust for Beneficiary as if such person had
actual or constructive notice that such funds were impressed with a trust in
accordance herewith.

                  C. Upon the occurrence of an Event of Default, the Beneficiary
shall have the right but not the obligation to perform as landlord under the
Leases and as a party under the Contracts. The assignment of Rents and Profits
set forth herein constitutes an irrevocable direction and authorization of all
tenants under the Leases to pay all Rents and Profits to Beneficiary upon demand
and without further consent or other action by Trustor. Trustor irrevocably
appoints Beneficiary its true and lawful attorney, at the option of Beneficiary
at any time following the occurrence of an Event of Default, to demand, receive
and enforce payment, to give receipts, releases and satisfactions, and to sue,
either in the name of Trustor or in the name of Beneficiary, for all such Rents
and Profits and apply the same to the indebtedness secured by this Deed of
Trust.

                  D. Neither the foregoing assignment of Rents and Profits,
Leases and Contracts to Beneficiary nor the exercise by Beneficiary of any of
its rights or remedies under Article III shall be deemed to make Beneficiary a
"mortgagee-in-possession" or otherwise liable in any manner with respect to the
Property, unless Beneficiary, in person or by agent, assumes actual possession
thereof. Nor shall appointment of a receiver for the Property by any court at
the request of Beneficiary or by agreement with Trustor, or the entering into
possession of the Property by such receiver, be deemed to make Beneficiary a
"mortgagee-in-possession" or otherwise liable in any manner with respect to the
Property.

                  E. In the event Beneficiary collects and receives any Rents
and Profits under this Section 1.7 pursuant to any Monetary or Performance
Default as defined in Section 2.1 hereof, such collection or receipt shall in no
way constitute a curing of the Monetary or Performance Default.

                  F. Trustor shall not, without the prior written consent of
Beneficiary which consent shall not be unreasonably withheld or delayed, enter
into, or consent to or permit the assignment or subletting of, any leases.

                  G. Trustor shall promptly give notice to Beneficiary of any
default under any of the Leases meeting the criteria of a lease for which
Beneficiary's consent would have been required pursuant to Section 1.7(F)
regardless of whether such leases were executed before or after the date of this
Deed of Trust, together with a complete copy of any notices delivered to or by
the tenant as a result of such default. Beneficiary shall have the right, but
not the obligation, to cure any default of Trustor under any of the Leases and
all amounts actually disbursed in connection with said cure shall be deemed to
be indebtedness secured hereby.

                  H. Beneficiary shall have the right to approve any lease forms
used by Trustor for lease of space in the Property.

                                       13

<PAGE>   17
                  I. Trustor hereby represents, warrants and agrees that:

                           1. Trustor has the right, power and capacity to make
this assignment and that no person, firm or corporation or other entity other
than Trustor has or will have any right, title or interest in or to the Leases
or the Rents and Profits.

                           2. Trustor shall, at its sole cost and expense,
perform and discharge all of the obligations and undertakings of the landlord
under the Leases. Trustor shall enforce the performance of each material
obligation of the tenants under the Leases and will appear in and prosecute or
defend any action connected with the Leases or the obligations of the tenants
thereunder.

                  J. BENEFICIARY SHALL NOT BE OBLIGATED TO PERFORM OR DISCHARGE,
NOR DOES IT HEREBY UNDERTAKE TO PERFORM OR DISCHARGE, ANY OBLIGATION, DUTY OR
LIABILITY UNDER THE LEASES OR UNDER OR BY REASON OF THIS ASSIGNMENT. TRUSTOR
SHALL AND DOES HEREBY AGREE TO INDEMNIFY BENEFICIARY FOR AND TO DEFEND AND HOLD
BENEFICIARY HARMLESS FROM ANY AND ALL LIABILITY, LOSS OR DAMAGE WHICH
BENEFICIARY MAY OR MIGHT INCUR UNDER THE LEASES OR UNDER OR BY REASON OF THIS
ASSIGNMENT, AND FROM ANY AND ALL CLAIMS (INCLUDING, BUT NOT LIMITED TO, ANY AND
ALL CLAIMS OR CAUSES OF ACTION ARISING OUT OF OR BASED IN WHOLE OR IN PART ON
THE NEGLIGENCE OR STRICT LIABILITY OF BENEFICIARY BUT EXCLUDING ANY SUCH CLAIMS
OR CAUSES OF ACTION ARISING OUT OF OR BASED IN WHOLE OR IN PART ON THE GROSS
NEGLIGENCE OR WILLFUL MISCONDUCT OF BENEFICIARY) WHATSOEVER WHICH MAY BE
ASSERTED AGAINST BENEFICIARY BY REASON OF ANY ALLEGED OBLIGATIONS OR
UNDERTAKINGS ON BENEFICIARY'S PART TO PERFORM OR DISCHARGE ANY OF THE TERMS,
COVENANTS OR AGREEMENTS CONTAINED IN THE LEASES. SHOULD BENEFICIARY INCUR ANY
LIABILITY, LOSS OR DAMAGE UNDER THE LEASES OR UNDER OR BY REASON OF THIS
ASSIGNMENT, OR IN THE DEFENSE OF ANY OF SUCH CLAIMS OR DEMANDS (BUT EXCLUDING
ANY SUCH LIABILITY, LOSS OR DAMAGE ARISING OUT OF OR BASED ON THE GROSS
NEGLIGENCE OR WILLFUL MISCONDUCT OF BENEFICIARY), THE AMOUNT THEREOF, INCLUDING
COSTS, EXPENSES AND ATTORNEYS' FEES, SHALL BE SECURED BY THIS DEED OF TRUST; AND
TRUSTOR SHALL REIMBURSE BENEFICIARY THEREFOR IMMEDIATELY UPON DEMAND, AND UPON
FAILURE OF TRUSTOR TO DO SO, BENEFICIARY MAY DECLARE ALL SUMS SO SECURED TO BE
IMMEDIATELY DUE AND PAYABLE.

                  K. Beneficiary may take or release other security, may release
any party primarily or secondarily liable for any indebtedness secured hereby,
may grant extensions, renewals or indulgences with respect to such indebtedness,
and may apply any other security therefor held by it to the satisfaction of such
indebtedness, without prejudice to any of its rights hereunder.

                                       14

<PAGE>   18
                  L. Nothing herein contained and no act done or omitted by
Beneficiary pursuant to the powers and rights granted it herein shall be deemed
to be a waiver by Beneficiary of its other rights and remedies under the Note
and this Deed of Trust, and this assignment is made and accepted without
prejudice to any of the other rights and remedies possessed by Beneficiary under
the terms thereof. The right of Beneficiary to collect said indebtedness and to
enforce any other security therefor held by it may be exercised by Beneficiary
either prior to, simultaneously with, or subsequent to any action taken by it
hereunder. It is the intent of both Trustor and Beneficiary that this assignment
be supplementary to, and not in substitution or derogation of, any other
provision contained in this Deed of Trust giving Beneficiary any interest in or
rights with respect to the Leases or Rents and Profits.

                  M. Neither this assignment nor pursuit of any remedy hereunder
by Beneficiary shall cause or constitute a merger of the interests of the tenant
and the Trustor under any of the Leases such that any of the Leases hereby
assigned are no longer valid and binding legal obligations of the parties
executing the same.

                  N. Trustor agrees, from time to time, to execute and deliver,
upon demand, all assignments and any and all other writings as Beneficiary may
reasonably deem necessary or desirable to carry out the purpose and intent
hereof, or to enable Beneficiary to enforce any right or rights hereunder.

         Section 1.8 Acceleration Upon Sale or Encumbrance. If, without the
prior written consent of Beneficiary, Trustor or any general partner, member or
shareholder of Trustor or any general partner of such general partner shall (A)
sell or convey the Property or any part thereof, or any interest in the Property
or in Trustor or in any general partner of Trustor; (B) be divested of its title
to the Property or any interest therein; (C) further encumber the Property or
the ownership interests in the Trustor; (D) enter into any lease giving the
tenant any option to purchase the Property or any part thereof; or (E) encumber,
grant a security interest in, transfer, permit the transfer of, or change or
permit the change in: (1) the ownership of interests in the Trustor or any
general partner in Trustor or any general partner of such general partner, or
(2) the amount of the general partnership or membership interests in Trustor or
the general partner of the Trustor or any general partner of such general
partner or the beneficiary thereof, without the prior written consent of
Beneficiary, then Beneficiary shall have the right, at its option, to declare
the indebtedness secured by this Deed of Trust, irrespective of the maturity
date specified in the Note, immediately due and payable. Except as expressly
consented to in writing by Beneficiary, Trustor shall not permit any additional
encumbrances on the Property.

         Section 1.9 Preservation and Maintenance of Property. Trustor shall
hire competent and responsive property managers who shall be reasonably
acceptable to Beneficiary. Trustor or its property manager, if applicable shall
keep the Property and every part thereof in good condition and repair, in
accordance with sound property management practices and shall promptly and
faithfully comply with and obey all laws, ordinances, rules, regulations,
requirements and orders of every duly constituted governmental authority or
agent having jurisdiction with respect to the Property. Trustor shall not permit
or commit any waste, impairment, or deterioration of the Property, nor commit,
suffer or permit any act upon or use of the Property in violation of law

                                       15
<PAGE>   19
or applicable order of any governmental authority, whether now existing or
hereafter enacted, or in violation of any covenants, conditions or restrictions
affecting the Property or bring or keep any article in the Property or cause or
permit any condition to exist thereon which would be prohibited by or invalidate
the insurance coverage required to be maintained hereunder. Trustor shall not
make any material structural changes or alterations to the Property nor remove
or demolish the Improvements or any portion thereof without the prior written
consent of Beneficiary. Trustor shall promptly restore any portion of the
Property which may be damaged or destroyed. Trustor shall promptly bond or
discharge any mechanics' liens against the Property.

                  Unless required by applicable law or unless Beneficiary has
otherwise first agreed in writing, Trustor shall not make or allow any changes
which will adversely affect the value of the Property to be made in the nature
of the occupancy or use of the Property or any part thereof for which the
Property or such part was intended at the time this Deed of Trust was delivered.
Trustor shall not initiate or acquiesce in any change which will adversely
affect the value of the Property in any zoning or other land use classification
now or hereafter in effect and affecting the Property or any part thereof
without in each case obtaining Beneficiary's prior written consent thereto.

         Section 1.10 Offset Certificates. Trustor, within five (5) days upon
request in person or within ten (10) days upon request by mail, shall furnish a
written statement duly acknowledged and notarized, of all amounts due on any
indebtedness secured hereby or secured by any of the Related Agreements, whether
for principal or interest on the Note or otherwise, and stating whether any
offsets or defenses exist against the indebtedness secured hereby and covering
such other matters with respect to any such indebtedness as Beneficiary may
reasonably require.

         Section 1.11 Trustee's Costs and Expenses. Trustor shall pay all actual
costs, fees and expenses of Trustee, its agents and counsel, in connection with
the performance of its duties hereunder.

         Section 1.12 Protection of Security; Costs and Expenses. Trustor and
its property manager, if applicable, shall appear in and defend any action or
proceeding purporting to affect the security of this Deed of Trust or any
additional or other security for the obligations secured hereby, or the rights
or powers of the Beneficiary or Trustee, and shall pay all costs and expenses
actually incurred, including, without limitation, cost of evidence of title and
actual attorneys' fees, in any such action or proceeding in which Beneficiary or
Trustee may appear, and in any suit brought by Beneficiary to foreclose this
Deed of Trust or to enforce or establish any other rights or remedies of
Beneficiary hereunder or under any other security for the obligations secured
hereby. If Trustor fails to perform any of the covenants or agreements contained
in this Deed of Trust, or if any action or proceeding is commenced which affects
Beneficiary's interest in the Property or any part thereof, including, eminent
domain, code enforcement, or proceedings of any nature whatsoever under any
federal or state law, whether now existing or hereafter enacted or amended,
relating to bankruptcy, insolvency, arrangement, reorganization or other form of
debtor relief, or to a decedent, then Beneficiary may, but without obligation to
do so and without notice to or demand upon Trustor, perform such covenant or
agreement and compromise any encumbrance, charge or lien which in the judgment
of Beneficiary appears to be prior or superior

                                       16
<PAGE>   20
hereto. Trustor shall further pay all expenses of Beneficiary actually incurred
(including reasonable and actual fees and disbursements of counsel) incident to
the protection or enforcement of the rights of Beneficiary hereunder, and
enforcement or collection of payment of the Note or any Future Advance whether
by judicial or nonjudicial proceedings, or in connection with any bankruptcy,
insolvency, arrangement, reorganization or other debtor relief proceeding of
Trustor, or otherwise. Any amounts disbursed by Beneficiary pursuant to this
section or Section 1.11 shall be additional indebtedness of Trustor secured by
this Deed of Trust and each of the Related Agreements as of the date of
disbursement and shall bear interest at the Default Rate set forth in the Note,
from demand until paid. All such amounts shall be payable by Trustor immediately
upon demand. Nothing contained in this section shall be construed to require
Beneficiary to incur any expense, make any appearance, or take any other action.

         Section 1.13 Trustor's Covenants Respecting Collateral.

                  A. Trustor shall execute and deliver financing and
continuation statements covering the Collateral from time to time and in such
form as Beneficiary may reasonably require to perfect and continue the
perfection of Beneficiary's security interest with respect to such property, and
Trustor shall pay all reasonable costs and expenses of any record searches for
financing statements Beneficiary may require.

                  B. Without the prior written consent of Beneficiary, Trustor
shall not create or suffer to be created any other security interest in the
Collateral, including replacements and additions thereto.

                  C. Without the prior written consent of Beneficiary or except
in the ordinary course of business, Trustor shall not sell, transfer or encumber
any of the Collateral, or remove any of the Collateral from the Property unless
Trustor shall promptly substitute and replace the property removed with similar
property of at least equivalent value on which Beneficiary shall have a
continuing security interest ranking at least equal in priority to Beneficiary's
security interest in the property removed.

                  D. Trustor shall (1) at any reasonable time and upon
reasonable notice (unless an emergency or Event of Default exists) permit
Beneficiary and its representatives to enter upon the Property to inspect the
Collateral and Trustor's books and records relating to the Collateral and make
extracts therefrom and to arrange for verification of the amount of Collateral,
under procedures reasonably acceptable to Beneficiary, directly with Trustor's
debtors or otherwise at Trustor's expense; (2) promptly notify Beneficiary of
any attachment or other legal process levied against any of the Collateral and
any information received by Trustor relative to the Collateral, Trustor's
debtors or other persons obligated in connection therewith, which may in any way
affect the value of the Collateral or the rights and remedies of Beneficiary in
respect thereto; (3) reimburse Beneficiary upon demand for any and all costs
actually incurred, including, without limitation, reasonable and actual
attorneys' and accountants' fees, and other expenses incurred in collecting any
sums payable by Trustor under any obligation secured hereby, or in the checking,
handling and collection of the Collateral and the preparation and enforcement of
any agreement relating thereto; (4) notify Beneficiary of each location at which
the Collateral is or will be kept,

                                       17
<PAGE>   21
other than for temporary processing, storage or similar purposes, and of any
removal thereof to a new location, including, without limitation, each office of
Trustor at which records relating to the Collateral are kept; (5) provide,
maintain and deliver to Beneficiary originals or certified copies of the
policies of insurance and certificates of insurance insuring the Collateral
against loss or damage by such risks and in such amounts, form and by such
companies as Beneficiary may require and with loss payable to Beneficiary, and
in the event Beneficiary takes possession of the Collateral, the insurance
policy or policies and any unearned or returned premium thereon shall at the
option of Beneficiary become the sole property of Beneficiary; and (6) do all
acts reasonably necessary to maintain, preserve and protect all Collateral, keep
all Collateral in good condition and repair and prevent any waste or unusual or
unreasonable depreciation thereof.

                  E. Until Beneficiary exercises its right to collect proceeds
of the Collateral pursuant hereto, Trustor will collect with diligence any and
all proceeds of the Collateral. If an Event of Default exists, any proceeds
received by Trustor shall be held in trust for Beneficiary, and Trustor shall
keep all such collections separate and apart from all other funds and property
so as to be capable of identification as the property of Beneficiary and shall
deliver to Beneficiary such collections at such time as Beneficiary may request
in the identical form received, properly endorsed or assigned when required to
enable Beneficiary to complete collection thereof.

                  F. Beneficiary shall have all of the rights and remedies
granted to a secured party under the Uniform Commercial Code of the state in
which the Collateral is located, as well as all other rights and remedies
available at law or in equity. During the continuance of any Event of Default
hereunder or under the Note, Beneficiary shall have the right to take possession
of all or any part of the Collateral, to receive directly or through its
agent(s) collections of proceeds of the Collateral (including notification of
the persons obligated to make payments to Trustor in respect of the Collateral),
to release persons liable on the Collateral and compromise disputes in
connection therewith, to exercise all rights, powers and remedies which Trustor
would have, but for the security agreement contained herein, to all of the
Collateral and proceeds thereof, and to do all other acts and things and execute
all documents in the name of Trustor or otherwise, deemed by Beneficiary as
necessary, proper and convenient in connection with the preservation, perfection
or enforcement of its rights hereunder; and

                  G. After any Event of Default hereunder or under the Note,
Trustor shall, at the request of Beneficiary, assemble and deliver the
Collateral and books and records pertaining to the Property at a place
designated by Beneficiary, and Beneficiary may, at reasonable times and with
reasonable notice to Trustor (unless an emergency or Event of Default exists),
enter onto the Property and take possession of the Collateral. It is agreed that
public or private sales, for cash or on credit to a wholesaler or retailer or
investor, or user of collateral of the types subject to the security agreement,
or public auction, are all commercially reasonable since differences in the
sales prices generally realized in the different kinds of sales are ordinarily
offset by the differences in the costs and credit risks of such sales. The
proceeds of any sale of the Collateral shall be applied first to the expenses of
Beneficiary actually incurred in retaking, holding, preparing for sale, or
selling the Collateral or similar matters, including reasonable and actual
attorneys' fees, and then, as Beneficiary shall solely determine.

                                       18
<PAGE>   22
         Section 1.14 Covenants Regarding Financial Statements.

                  A. Trustor shall keep true books of record and account in
which full, true and correct entries in accordance with sound accounting
practice and principles applied on a consistent basis from year to year shall be
made of all dealings or transactions with respect to the Property.

                  B.       1. Trustor shall deliver to Beneficiary:

                           (a)      Within ninety (90) days after the last day
                                    of each fiscal year of the Trustor during
                                    the term of the Note, unaudited annual
                                    financial reports prepared on a cash basis,
                                    including balance sheets, income statements
                                    and cash flow statements covering the
                                    operation of the Property, the financial
                                    condition of Trustor, Trustor's general
                                    partners(s), shareholder(s), member(s) and
                                    such principals of the Trustor as
                                    Beneficiary may from time to time designate,
                                    for the previous fiscal year, all certified
                                    to Beneficiary to be complete, correct and
                                    accurate by the individual, managing general
                                    partner, manager or chief financial officer
                                    of the party whom the report concerns; and

                           (b)      If available, within thirty (30) days after
                                    receipt by Trustor, original annual audit
                                    reports of an independent certified public
                                    accountant prepared in accordance with
                                    generally accepted accounting principals
                                    containing an unqualified opinion, including
                                    balance sheets, income statements and cash
                                    flow statements covering the operation of
                                    the Property and the financial condition of
                                    the Trustor, Trustor's general partner(s),
                                    shareholder(s), member(s) and such
                                    principals of the Trustor as Beneficiary may
                                    from time to time designate, for the
                                    previous fiscal year;

                           2. At the request of Beneficiary from time to time
(but no more often than once in each fiscal quarter of the Trustor during the
term of the Note), Trustor shall also deliver to Beneficiary Trustor's Form 10Q
and 10K, unaudited financial reports prepared on a cash basis, including balance
sheets, income statements and cash flow statements covering the operation of the
Property and the financial condition of the Trustor, Trustor's general
partner(s), shareholder(s), member(s) and such principals of the Trustor as
Beneficiary may from time to time request, for the previous fiscal quarter, a
portfolio analysis report covering the operation of all properties of which
Trustor or any of Trustor's general partner(s), shareholder(s), member(s) or
principals designated by Beneficiary is the owner or a general partner of the
owner, setting out a cash flow statement (including debt service payments) for
each such property, and a current rent roll of the Property, all certified to
Beneficiary to be complete, correct and accurate by the individual, managing
general partner or chief financial officer of the party whom the report
concerns.

                                       19
<PAGE>   23
                           3. All reports shall include, without limitation,
balance sheets and statements of income and of partner's equity, if applicable,
setting forth in each case in comparative form the figures for the previous
fiscal quarter or year, as the case may be. The interim quarterly reports shall
also include a breakdown of all categories of revenues and expenses, and any
supporting schedules and data requested by Beneficiary. Each set of annual or
quarterly financial reports or quarterly rent rolls delivered to Beneficiary
pursuant to this Section 1.14 shall also be accompanied by a certificate of the
chief financial officer or the managing general partner of Trustor, stating
whether any condition or event exists or has existed during the period covered
by the annual or quarterly reports which then constituted or now constitutes an
Event of Default under the Note or this Deed of Trust, and if any such condition
or event then existed or now exists, specifying its nature and period of
existence and what Trustor did or proposes to do with respect to such condition
or event.

                  C. In the event such statements are not in a form reasonably
acceptable to Beneficiary or Trustor fails to furnish such statements and
reports, then Beneficiary shall have the immediate and absolute right to audit
the respective books and records of the Property and Trustor at the expense of
Trustor.

         Section 1.15 Environmental Covenants. Trustor covenants: (A) that no
Hazardous Materials (as defined below) shall be installed, used, generated,
manufactured, treated, handled, refined, produced, processed, stored or disposed
of, in, on or under the Property; (B) that no activity shall be undertaken on
the Property which would cause (1) the Property to become a hazardous waste
treatment, storage or disposal facility under any Hazardous Material Law (as
defined below), (2) a release or threatened release of Hazardous Material from
the Property in violation of any Hazardous Material Law, or (3) the discharge of
Hazardous Material into any watercourse, body of surface or subsurface water or
wetland, or the discharge into the atmosphere of any Hazardous Material which
would require a permit under any Hazardous Material Law and for which no such
permit has been issued; (C) that no activity shall be undertaken or permitted to
be undertaken, by the Trustor on the Property which would result in a violation
under any Hazardous Material Law, (D) to obtain and deliver to Beneficiary,
within a reasonable time following completion of actions required by an
appropriate governmental agency, certifications of engineers or other
professionals reasonably acceptable to Beneficiary, in form and substance
satisfactory to Beneficiary, certifying that all necessary and required actions
to clean up, remove, contain, prevent and eliminate all releases or threats of
release of Hazardous Materials on or about the Property to the levels required
by the appropriate governmental agencies have been taken and, to the current,
actual knowledge of such professional, the Property is then in compliance with
applicable Hazardous Material Laws as then in effect and applicable to such
actions. For purposes of this Deed of Trust, "Hazardous Materials" means and
includes asbestos or any substance containing asbestos, polychlorinated
biphenyls, any explosives, radioactive materials, chemicals known or suspected
to cause cancer or reproductive toxicity, pollutants, effluents, contaminants,
emissions, infectious wastes, any petroleum or petroleum-derived waste or
product or related materials and any items defined as hazardous, special or
toxic materials, substances or waste under any Hazardous Material Law, or any
material which shall be removed from the Property pursuant to any administrative
order or enforcement proceeding or in order to place the Property in a condition
that is suitable for ordinary use. "Hazardous Material Laws"

                                       20
<PAGE>   24
collectively means and includes any present and future local, state, federal or
international law or treaty relating to public health, safety or the environment
including without limitation, the Resource Conservation and Recovery Act, as
amended ("RCRA"), 42 U.S.C. Section 6901 et seq., the Comprehensive
Environmental Response, Compensation, and Liability Act ("CERCLA"), 42 U.S.C.
Section 9601 et seq., as amended by the Superfund Amendments and Reauthorization
Act of 1986 ("SARA"), the Hazardous Materials Transportation Act, 49 U.S.C.
Section 1801 et seq., the Clean Water Act, 33 U.S.C. Section 1251 et seq., the
Clean Air Act, as amended 42 U.S.C. Section 7401 et seq., the Toxic Substances
Control Act, 15 U.S.C. Section 2601 et seq., the Safe Drinking Water Act, 42
U.S.C. Section 300f et seq., the Uranium Mill Tailings Radiation Control Act, 42
U.S.C. Section 7901 et seq., the Occupational Safety and Health Act, 29 U.S.C.
Section 655 et seq., the Federal Insecticide, Fungicide and Rodenticide Act, 7
U.S.C. Section 136 et seq., the National Environmental Policy Act, 42 U.S.C.
Section 4321 et seq., the Noise Control Act, 42 U.S.C. Section 4901 et seq., and
the Emergency Planning and Community Right-to-Know Act, 42 U.S.C. Section 11001
et seq., and the amendments, regulations, orders, decrees, permits, licenses or
deed restrictions now or hereafter promulgated thereunder.

                                   ARTICLE 2
                                EVENTS OF DEFAULT

         Each of the following shall constitute an event of default ("Event of
Default") hereunder:

         Section 2.1 Monetary and Performance Defaults.

                  A. Failure to make any payment due under the Note or any note
evidencing a Future Advance, other than the final payment and Prepayment
Premium, or to make any payment due under this Deed of Trust to Beneficiary or
any other party, including without limitation, payment of escrow deposits, real
estate taxes, insurance premiums and ground rents, if any, on or before the
fifth day of the month in which such payment is due; or

                  B. Failure to make the final payment or the Prepayment Premium
due under the Note or any note evidencing a Future Advance when such payment is
due whether at maturity, by reason of acceleration, as part of a prepayment or
otherwise (the defaults in A. and B. hereinafter "Monetary Default"); or

                  C. Breach or default in the performance of any of the
covenants or agreements of Trustor contained herein or in any Related Agreement
("Performance Default"), if such Performance Default shall continue for fifteen
(15) days or more after written notice to Trustor from Beneficiary specifying
the nature of the Performance Default; provided, however, that if such
Performance Default is of a nature that it cannot be cured within the 15 day
period, then Trustor shall not be in default if it commences good faith efforts
to cure the Performance Default within the 15 day period, demonstrates
continuous diligent efforts to cure the Performance Default in a manner
satisfactory to Beneficiary and, within a reasonable period, not to exceed 180
days after the date of the original written notice of the Performance Default,
completes the cure of such Performance Default.

                                       21
<PAGE>   25
         Section 2.2 Bankruptcy, Insolvency, Dissolution.

                  A. Any court of competent jurisdiction shall sign an order (1)
adjudicating Trustor, or any person, partnership or corporation holding an
ownership interest in Trustor or in any partnership comprising Trustor, or any
guarantor (which term when used in this Deed of Trust shall mean guarantor of
payment of the indebtedness) bankrupt or insolvent, (2) appointing a receiver,
trustee or liquidator of the Property or of a substantial part of the property
of Trustor, or any person, partnership or corporation holding an ownership
interest in Trustor, or in any partnership comprising Trustor, or any guarantor,
or (3) approving a petition for, or effecting an arrangement in bankruptcy, or
any other judicial modification or alteration of the rights of Beneficiary or of
other creditors of Trustor, or any person, partnership or corporation holding an
ownership interest in Trustor, or in any partnership comprising Trustor or any
guarantor; or

                  B. Trustor, any partnership or corporation holding an
ownership interest in Trustor or in any partnership comprising Trustor, shall
(1) apply for or consent to the appointment of a receiver, trustee or liquidator
for it or for any of its property, (2) as debtor, file a voluntary petition in
bankruptcy, or petition or answer seeking reorganization or an arrangement with
creditors or to take advantage of any bankruptcy, reorganization, insolvency,
readjustment of debt, dissolution or liquidation law or statute, or an answer
admitting the material allegations of a petition filed against it and any
proceeding under such law, (3) admit in writing an inability to pay its debts as
they mature, or (4) make a general assignment for the benefit of creditors; or

                  C. An involuntary petition in bankruptcy is filed against
Trustor, or any person, partnership or corporation holding an ownership interest
in Trustor or in any partnership comprising Trustor and the same is not vacated
or stayed within 30 days of the filing date.

         Section 2.3 Misrepresentation. Trustor makes or furnishes a
representation, warranty, statement, certificate, schedule and/or report to
Beneficiary in or pursuant to this Deed of Trust or any of the Related
Agreements which is false or misleading in any material respect as of the date
made or furnished.

         Section 2.4 Default under Subordinate Loans. An occurrence of a default
under any loan subordinate to this Deed of Trust which is not an independent
default under this Deed of Trust which results in the commencement of
foreclosure proceedings or the taking of any other remedial action under such
subordinate loan.

                                   ARTICLE 3
                                    REMEDIES

         Upon the occurrence of any Event of Default, Trustee and Beneficiary
shall have the following rights and remedies set forth in Sections 3.1 through
3.14:

         Section 3.1 Acceleration. Notwithstanding the stated maturity date in
the Note, or any note evidencing any Future Advance, Beneficiary may without
notice or demand, declare the

                                       22
<PAGE>   26
entire principal amount of the Note and/or any Future Advances then outstanding
and accrued and unpaid interest thereon, and all other sums or payments required
thereunder including, but not limited to the Prepayment Premium described in the
Note, to be due and payable immediately.

         Section 3.2 Entry. Irrespective of whether Beneficiary exercises the
option provided in Section 3.1 above, Beneficiary in person or by agent or by
court-appointed receiver (and Beneficiary shall have the right to the immediate
appointment of such a receiver without regard to the adequacy of the security
and Trustor hereby irrevocably consents to such appointment and waives notice of
any application therefor) may, at its option, without any action on its part
being required, without in any way waiving such Event of Default, with or
without the appointment of a receiver, or an application therefor:

                  A. take possession of the Property and conduct tests of,
manage or hire a manager to manage, lease and operate the Property or any part
thereof, on such terms and for such period of time as Beneficiary may deem
proper, with full power to make, from time to time, all alterations,
renovations, repairs or replacements thereto as may seem proper to Beneficiary;

                  B. with or without taking possession of the Property, collect
and receive all Rents and Profits, notify tenants under the Leases or any other
parties in possession of the Property to pay Rents and Profits directly to
Beneficiary, its agent or a court-appointed receiver and apply such Rents and
Profits to the payment of:

                           1. all costs and expenses incident to taking and
retaining possession of the Property, management and operation of the Property,
keeping the Property properly insured and all alterations, renovations, repairs
and replacements to the Property;

                           2. all taxes, charges, claims, assessments, and any
other liens which may be prior in lien or payment to this Deed of Trust or the
Note, and premiums for insurance, with interest on all such items; and

                           3. the indebtedness secured hereby together with all
costs and attorney's fees, in such order or priority as to any of such items as
Beneficiary in its sole discretion may determine, any statute, law, custom or
use to the contrary notwithstanding;

                  C. exclude Trustor, its agents and servants, wholly from the
Property;

                  D. have joint access with Trustor to the books, papers and
accounts of Trustor relating to the Property, at the expense of Trustor;

                  E. commence, appear in and/or defend any action or proceedings
purporting to affect the interests, rights, powers and/or duties of Beneficiary
hereunder, whether brought by or against Trustor or Beneficiary; and

                                       23
<PAGE>   27
                  F. pay, purchase, contest or compromise any claim, debt, lien,
charge or encumbrance which in the judgment of Beneficiary may affect or appear
to affect the interest of Beneficiary or the rights, powers and/or duties of
Beneficiary hereunder.

The receipt by Beneficiary of any Rents and Profits pursuant to this Deed of
Trust after the institution of foreclosure or other proceedings under the Deed
of Trust shall not cure any such Event of Default or affect such proceedings or
any sale pursuant thereto. After deducting the expenses and amounts set forth
above in this Section 3.2, as well as just and reasonable compensation for all
Beneficiary's employees and other agents (including, without limitation,
reasonable and actual attorneys' fees and management and rental commissions)
engaged and employed, the moneys remaining, at the option of Beneficiary, may be
applied to the indebtedness secured hereby. Whenever all amounts due on the Note
and under this Deed of Trust shall have been paid and all Events of Default have
been cured and any such cure has been accepted by Beneficiary, Beneficiary shall
surrender possession to Trustor. The same right of entry, however, shall exist
if any subsequent Event of Default shall occur; provided, however, neither
Trustee nor Beneficiary shall be under any obligation to make any of the
payments or do any of the acts referred to in this Section 3.2.

         Section 3.3 Judicial Action. Beneficiary may bring an action in any
court of competent jurisdiction to foreclose this instrument or to enforce any
of the covenants and agreements hereof. The Property may be foreclosed in parts
or as an entirety.

         Section 3.4 Non-Judicial. Upon failure to perform or to pay the amounts
secured hereby, or any part thereof, when the same shall become due (after the
expiration of any applicable cure or grace period), in whatever way the maturity
thereof may be brought about, it shall thereupon, or at any time thereafter
while any part of the amounts secured hereby remains undischarged, be the duty
of the Trustee, or his successors, as hereinafter provided, at the request of
Beneficiary (which request shall be presumed), to enforce this trust and to sell
the Property, as an entirety or in parcels, by one sale or by several sales,
held at one time or at different times, all as the Trustee acting may elect,
each sale to be held at the door of the county courthouse in any county in which
a part of the real property to be sold is situated and to be made on the first
Tuesday of some month between the hours of 10 o'clock a.m. and 4 o'clock p.m. to
the highest bidder for cash at public vendue, after the Trustee (or a person or
persons selected by the Trustee) and Beneficiary shall have given notices of the
proposed sale in the manner hereinafter set forth, and to make due conveyance to
the purchaser or purchasers, with special warranty of title to such purchaser or
purchasers binding upon Trustor and its successors. Trustor, for itself, its
successors and assigns, hereby expressly and specifically waive all rights to a
marshaling of the assets of Trustor, including the Property, or to a sale in
inverse order of alienation.

         Section 3.5 Posting. The Trustee (or a person or persons selected by
the Trustee) shall give notice of each such proposed sale by posting written
notice of the time, place, and terms of sale at the courthouse door, and by
filing a copy of such written notice in the office of the county clerk, of the
county in which the sale is to be made for at least twenty-one (21) consecutive
days preceding the date of the sale. Where properties to be sold are situated in
more than one county, one notice shall be posted at the courthouse door, and a
copy of such notice shall be filed with the

                                       24
<PAGE>   28
county clerk, of each county in which a part of the real properties to be sold
is situated, and such notices shall designate the county where such real
properties will be sold, which may be any county in which a part of said real
properties is situated. In addition to the foregoing notice or notices to be
posted and filed by the Trustee (or a person or persons selected by the
Trustee), Beneficiary shall, at least twenty-one (21) days preceding the date of
sale, serve or cause to be served written notice of the proposed sale by
certified mail on each debtor obligated to pay such indebtedness according to
the records of Beneficiary. The service of such notice shall be completed upon
deposit of the notice, enclosed in a postpaid wrapper, properly addressed to
each such debtor at the most recent address (which shall be within the United
States of America) as shown by the records of Beneficiary, in a post office or
official depository under the care and custody of the United States Postal
Service. The affidavit of any person having knowledge of the facts to the effect
that such service was completed shall be prima facie evidence of the fact of
service. In this respect and to the full extent they may legally do so, Trustor
also expressly covenants, stipulates, and agrees that: (i) the address of
Trustor set out in Section 4.3 hereof shall be deemed and considered
conclusively to be and remain at all times the most recent address of all
debtors obligated to pay such indebtedness as shown by the records of
Beneficiary, provided such address may be changed to some other address within
the United States of America from time to time only by express written notice of
change thereof signed by all debtors obligated to pay such indebtedness and
actually delivered to and received by Beneficiary and setting forth a new
address which shall be within the United States of America and which shall be
deemed and considered conclusively to be and remain at all times thereafter the
most recent address of all debtors obligated to pay such indebtedness as shown
by the records of Beneficiary until changed in the manner herein provided, (ii)
the records of Beneficiary shall not be deemed to reflect any change in the name
or identity of the debtors obligated to pay the indebtedness (to whom notice of
a proposed sale shall be required to be mailed as provided for above) unless and
until express written notice of such changed signed by all debtors obligated to
pay such indebtedness shall have been actually delivered to and received by
Beneficiary, and (iii) no notice of such sale or sales other than the notices
hereinabove provided shall be required to be given to Trustor or any other
persons and any other notice is expressly waived.

         Section 3.6 Statutes. The provisions of Section 3.5 with respect to
posting, serving, filing, and giving notices of sale are intended to comply with
the provisions of Section 51.002 of the Property Code of the State of Texas (in
this Section 3.6 such Section 51.002 being called the "Subject Statutes"). In
the event the requirement for any notice, or the posting, serving, filing, or
giving thereof, under the Subject Statutes shall be eliminated or the prescribed
manner of posting, serving, filing, or giving same is modified by future
amendment to the Subject Statutes, the requirement for such particular notice
shall be stricken from, or the manner of posting, serving, filing, or giving any
notice hereunder modified in, this Deed of Trust in conformity with such
amendment. The manner herein prescribed for posting, serving, filing, or giving
any notice, other than that to be posted and filed or caused to be posted and
filed by the Trustee, shall not be deemed exclusive but such notice or notices
may be posted, served, filed, or given in any other manner which may be
permitted by applicable law. Further, in relation to this Deed of Trust and the
exercise of any power of sale by the Trustee hereunder, if either the Subject
Statutes shall be amended or modified to require any other notice or the
posting, filing, serving, or giving thereof or any statute hereafter enacted
shall require any other notice or the posting, filing, serving, or

                                       25
<PAGE>   29
giving thereof, the Trustee or the person selected by him is hereby authorized
and empowered by Trustor to give such notice or make such posting, filing,
serving, or giving thereof; provided, however, Trustor waive such other notice
or the posting, filing, serving, or giving thereof to the full extent Trustor
may lawfully so do.

         Section 3.7 Installment Sale. Without limiting any of the powers or
remedies provided elsewhere, Trustor agrees that, in the event the amounts
secured hereby are payable in installments or include, at any time, items of
matured as well as unmatured indebtedness, as the case may be, Beneficiary shall
have the right to have the Property sold, subject to the part of the Note which
is unmatured at the time the Trustee is requested to make such sale, at
Trustee's sale to satisfy the lien and security interest hereof securing the
then matured portion of said indebtedness and the Trustee is expressly
authorized and empowered to conduct such sale which is called in this Section
3.7 "Installment Foreclosure." Any Installment Foreclosure made under this
Section 3.7 shall not affect the liens, assignments, and security interest of
this Deed of Trust existing to secure that portion of the obligations secured
hereby to which the sale is to be made subject. No Installment Foreclosure shall
exhaust the power of the Trustee to conduct future Installment Foreclosures nor
in anywise limit the powers of sale provided elsewhere in this Deed of Trust.
The provisions elsewhere in this Deed of Trust relating to manner of conducting
Trustee's sales, including the posting, filing, and giving of notices thereof,
shall also apply to any Installment Foreclosure and the same presumptions shall
be applicable to any Trustee's deed or recital therein contained in connection
with an Installment Foreclosure and to any other affidavit as hereinabove
provided.

         Section 3.8 Rescission of Notice of Default. Beneficiary, from time to
time before Trustee's sale, public sale or deed in lieu of foreclosure, may
rescind any such notice of breach or default and of election to cause the
Property to be sold by executing and delivering to Trustee a written notice of
such rescission, which notice, when recorded, shall also constitute a
cancellation of any prior declaration of default and demand for sale or such
documents as may be required by the laws of the state in which the Property is
located to effect such rescission. The exercise by Beneficiary of such right of
rescission shall not constitute a waiver of any breach or Event of Default then
existing or subsequently occurring, or impair the right of Beneficiary to
execute and deliver to Trustee, as above provided, other declarations of default
and demand for sale, and notices of breach or default, and of election to cause
the Property to be sold to satisfy the obligations hereof, nor otherwise affect
any provision, agreement, covenant or condition of the Note and/or of this Deed
of Trust or any of the rights, obligations or remedies of the parties hereunder.

         Section 3.9 Beneficiary's Remedies Respecting Collateral. Beneficiary
may realize upon the Collateral, enforce and exercise all of the Trustor's
rights, powers, privileges and remedies in respect of the Collateral, dispose of
or otherwise deal with the Collateral in such order as Beneficiary may in its
discretion determine, and exercise any and all other rights, powers, privileges
and remedies afforded to a secured party under the laws of the state in which
the Property is located as well as all other rights and remedies available at
law or in equity.

                                       26
<PAGE>   30
         Section 3.10 Proceeds of Sales. The proceeds of any sale made under or
by virtue of this Article III, together with all other sums which then may be
held by Trustee or Beneficiary under this Deed of Trust, whether under the
provisions of this Article III or otherwise, shall be applied as follows:

                  A. To the payment of the costs, fees and expenses of sale and
of any judicial proceedings wherein the same may be made, including the cost of
evidence of title in connection with the sale, compensation to Trustee and
Beneficiary, and to the payment of all expenses, liabilities and advances made
or incurred by Trustee under this Deed of Trust, together with interest on all
advances made by Trustee at the interest rate applicable under the Note, but
limited to any maximum rate permitted by law to be charged by Trustee;

                  B. To the payment of any and all sums expended by Beneficiary
under the terms hereof, not then repaid, with accrued interest at the Default
Rate set forth in the Note, and all other sums (except advances of principal and
interest thereon) required to be paid by Trustor pursuant to any provisions of
this Deed of Trust, or the Note, or any note evidencing any Future Advance, or
any of the Related Agreements, including, without limitation, all expenses,
liabilities and advances made or incurred by Beneficiary under this Deed of
Trust or in connection with the enforcement thereof, together with interest
thereon as herein provided; and

                  C. To the payment of the entire amount then due, owing or
unpaid for principal and interest upon the Note, any notes evidencing any Future
Advance, and any other obligation secured hereby, with interest on the unpaid
principal at the rate set forth therein from the date of advancement thereof
until the same is paid in full; and then

                  D. The remainder, if any, to the person or persons, including
the Trustor, legally entitled thereto.

         Section 3.11 Condemnation and Insurance Proceeds. All Condemnation
Proceeds, Insurance Proceeds and any interest earned thereon shall be paid over
either by the condemning authority, insurance company or escrow agent to
Beneficiary and shall be applied first toward reimbursement of the costs and
expenses of Beneficiary (including reasonable attorneys' fees), if any, in
connection with the recovery of such Proceeds, and then shall be applied in the
sole and absolute discretion of Beneficiary and without regard to the adequacy
of its security under this Deed of Trust (A) to the payment or prepayment of all
or any portion of the Note including the Prepayment Premium described in the
Note; (B) to the reimbursement of expenses incurred by Beneficiary in connection
with the restoration of the Property; or (C) to the performance of any of the
covenants contained in this Deed of Trust as Beneficiary may determine. Any
prepayment of the Note or portion thereof pursuant to Beneficiary's election
under this section shall be subject to the Prepayment Premium described in the
Note.

         Section 3.12 Waiver of Marshalling, Rights of Redemption, Homestead,
Valuation and Notice.

                                       27
<PAGE>   31
                  A. Trustor, for itself and for all persons hereafter claiming
through or under it or who may at any time hereafter become holders of liens
junior to the lien of this Deed of Trust, hereby expressly waives and releases
all rights to direct the order in which any of the Property shall be sold in the
event of any sale or sales pursuant hereto and to have any of the Property
and/or any other property now or hereafter constituting security for any of the
indebtedness secured hereby marshalled upon any foreclosure of this Deed of
Trust or of any other security for any of said indebtedness.

                  B. To the fullest extent permitted by law, Trustor, for itself
and all who may at any time claim through or under it, hereby expressly waives,
releases and renounces all rights of redemption from any foreclosure sale, all
rights of homestead, exception, monitoring reinstatements, forbearance,
appraisement, valuation, stay and all rights under any other laws which may be
enacted extending the time for or otherwise affecting enforcement or collection
of the Note, the debt evidenced thereby, or this Deed of Trust.

                  C. Trustor, for itself and for all persons hereafter claiming
through or under it, hereby expressly waives, any notice of default, except as
specifically provided for herein, notice of intent to accelerate, notice of
acceleration and all other notices now or hereafter required by law.

         Section 3.13 Remedies Cumulative. No remedy herein conferred upon or
reserved to Trustee or Beneficiary is intended to be exclusive of any other
remedy herein or by law provided, but each shall be cumulative and shall be in
addition to every other remedy given hereunder or now or hereafter existing at
law or in equity or by statute. No delay or omission of Trustee or Beneficiary
to exercise any right or power accruing upon any Event of Default shall impair
any right or power or shall be construed to be a waiver of any Event of Default
or any acquiescence therein. Every power and remedy given by this Deed of Trust
to Trustee or Beneficiary may be exercised separately, successively or
concurrently from time to time as often as may be deemed expedient by Trustee or
Beneficiary. If there exists additional security for the performance of the
obligations secured hereby, Beneficiary, at its sole option, and without
limiting or affecting any of its rights or remedies hereunder, may exercise any
of the rights and remedies to which it may be entitled hereunder either
concurrently with whatever rights and remedies it may have in connection with
such other security or in such order as it may determine. Any application of any
amounts or any portion thereof held by Beneficiary at any time as additional
security or otherwise, to any indebtedness secured hereby shall not extend or
postpone the due dates of any payments due from Trustor to Beneficiary hereunder
or under the Note, any Future Advance, or under any of the Related Agreements,
or change the amounts of any such payments or otherwise be construed to cure or
waive any default or notice of default hereunder or invalidate any act done
pursuant to any such default or notice.

         Section 3.14 Recourse. Trustor shall be fully liable under this Deed of
Trust. However, except as otherwise set forth in this section, the liability of
the general partners or shareholder of Trustor, if any, under the Note, this
Deed of Trust and the Related Agreements shall be limited to and satisfied from
the Property and the proceeds thereof, the Rents and Profits and all other
income arising therefrom, the other assets of Trustor arising out of the
Property which are given

                                       28
<PAGE>   32
as collateral for the Note, and any other collateral given in writing to
Beneficiary as security for repayment of the Note (all of the foregoing
collectively referred to as the "Loan Collateral"); provided, however, that
nothing contained in this section shall (A) preclude Beneficiary from
foreclosing the lien of this Deed of Trust or from enforcing any of its rights
or remedies in law or in equity against Trustor, (B) constitute a waiver of any
obligation evidenced by the Note or secured by this Deed of Trust or any Related
Agreements, (C) limit the right of Beneficiary or Trustee to name Trustor as a
party defendant in any action brought under this Deed of Trust, the Note or any
Related Agreements, (D) prohibit Beneficiary or Trustee from pursuing all of its
rights and remedies against Trustor, any guarantor or surety, whether or not
such guarantor or surety is a partner of Trustor or a Maker under the Note, (E)
limit the personal liability of Trustor or any shareholder of Trustor, or any
general partner of Trustor, to Beneficiary or Trustee, for misappropriation or
misapplication of funds, fraud, waste, willful misrepresentation or willful
damage to the Property, or (F) preclude Beneficiary from recovering from Trustor
and the Indemnitors under that certain Environmental Indemnity Agreement of even
date herewith.

                                   ARTICLE 4
                                  MISCELLANEOUS

         Section 4.1 Severability. In the event any one or more of the
provisions contained in this Deed of Trust shall for any reason be held to be
invalid, illegal or unenforceable in any respect, such invalidity, illegality or
unenforceability shall not affect any other provision of this Deed of Trust, but
this Deed of Trust shall be construed as if such invalid, illegal or
unenforceable provision had never been contained herein, but only to the extent
that it is invalid, illegal or unenforceable.

         Section 4.2 Certain Charges and Brokerage Fees.

                  A. Trustor agrees to pay Beneficiary for each written
statement requested of Beneficiary as to the obligations secured hereby,
furnished at Trustor's request. Trustor further agrees to pay the charges of
Beneficiary for any other service rendered Trustor, or on its behalf, connected
with this Deed of Trust or the indebtedness secured hereby, including, without
limitation, the delivery to an escrow holder of a request for full or partial
release or reconveyance of this Deed of Trust, transmittal to an escrow holder
of moneys secured hereby, changing its records pertaining to this Deed of Trust
and indebtedness secured hereby to show a new owner of the Property, and
replacing an existing policy of insurance held hereunder with another such
policy.

                  B. Trustor agrees to indemnify and hold Beneficiary harmless
from any responsibility and/or liability for the payment of any commission
charge or brokerage fees to anyone which may be payable in connection with the
funding of the loan evidenced by the Note and this Deed of Trust or refinancing
of any prior indebtedness, if applicable, based upon any action taken by
Trustor. It is understood that any such commission charge or brokerage fees
shall be paid directly by Trustor to the entitled parties.

         Section 4.3 Notices.

                                       29
<PAGE>   33
                  A. All notices expressly provided hereunder to be given by
Beneficiary to Trustor and all notices, demands and other communications of any
kind or nature whatever which Trustor may be required or may desire to give to
or serve on Beneficiary shall be in writing and shall be (1) hand-delivered by a
third-party courier service, effective upon receipt, (2) sent by United States
Express Mail or by private third-party overnight courier, effective upon
receipt, or (3) served by certified mail, to the appropriate address set forth
below, or at such other place as the Trustor, Beneficiary or Trustee, as the
case may be, may from time to time designate in writing by ten (10) days prior
written notice thereof. Any such notice or demand served by certified mail,
return receipt requested, shall be deposited in the United States mail, with
postage thereon fully prepaid and addressed to the party so to be served at its
address above stated or at such other address of which said party shall have
theretofore notified in writing, as provided above, the party giving such
notice. Service of any such notice or demand so made shall be deemed effective
on the day of actual delivery as shown by the addressee's return receipt or the
expiration of three (3) business days after the date of mailing, whichever is
the earlier in time. Any notice required to be given by Beneficiary shall be
equally effective if given by Beneficiary's agent, if any.

                  B. Trustor hereby requests that any notice, demand, request or
other communication (including any notice of an Event of Default and notice of
sale as may be required by law) desired to be given or required pursuant to the
terms hereof be addressed to Trustor as follows:

                         Royal BodyCare, Inc.
                         2301 Crown Court
                         Irving, TX 75038

         With a copy to:

                         Winstead Sechrist & Minick P.C.
                         5400 Renaissance Tower
                         1201 Elm Street
                         Dallas, TX  75270-2199
                         Attn:  Ken Kopf, Esq.

           All notices and other communications to Beneficiary shall be
addressed as follows:

                         Allstate Life Insurance Company
                         3075 Sanders Road, Suite G5C
                         Northbrook, IL 60062
                         Attention:  Commercial Mortgage Loan Servicing Division

                         With a copy to:

                         Allstate Insurance Company

                                       30
<PAGE>   34
                         3075 Sanders Road, Suite G5A
                         Northbrook, IL 60062
                         Attention:  Investment Law Division

           All notices to Trustee shall be addressed as follows:

                         Robin R. Green, Esq.
                         c/o Akin, Gump, Strauss, Hauer & Feld, L.L.P.
                         1700 Pacific Avenue, Suite 4100
                         Dallas, TX 75201-4675

         Section 4.4 Trustor Not Released; Certain Trustee Acts.

                  A. Extension of the time for payment or modification of the
terms of payment of any sums secured by this Deed of Trust granted by
Beneficiary to any successor in interest of Trustor shall not operate to
release, in any manner, the liability of Trustor. Beneficiary shall not be
required to: commence proceedings against such successor or refuse to extend
time for payment or otherwise modify the terms of payment of the sums secured by
this Deed of Trust, by reason of any demand made by Trustor. Without affecting
the liability of any person, including Trustor, for the payment of any
indebtedness secured hereby, or the legal operation and effect of this Deed of
Trust on the remainder of the Property for the full amount of any such
indebtedness and liability unpaid, Beneficiary and Trustee are respectively
empowered as follows: Beneficiary may from time to time and without notice (1)
release any person liable for the payment of any of the indebtedness; (2) extend
the time or otherwise alter the terms of payment of any of the indebtedness; (3)
accept additional real or personal property of any kind as security therefor,
whether evidenced by deeds of trust, mortgages, security agreements or any other
instruments of security; or (4) alter, substitute or release any property
securing the indebtedness.

                  B. Beneficiary may, at any time, and from time to time, (1)
consent to the making of any map or plan of the Property or any part thereof;
(2) join in granting any easement or creating any restriction thereon; (3) join
in any subordination or other agreement affecting this Deed of Trust or the
legal operation and effect or charge hereof; or (4) release or reconvey, without
any warranty, all or part of the Property from the lien of this Deed of Trust.

         Section 4.5 Inspection. Upon reasonable prior notice and subject to the
inspection rights of tenants under the Leases, Beneficiary may at any reasonable
time make or cause to be made entry upon and make inspections, reappraisals,
surveys, construction and environmental testing of the Property or any part
thereof in person or by agent, all at Beneficiary's sole cost and expense.

         Section 4.6 Release or Cancellation. Upon the payment in full of all
sums secured by this Deed of Trust, this Deed of Trust shall become null and
void. Upon payment of its fees and any other sums owing to it under this Deed of
Trust, Beneficiary shall release this Deed of Trust. The duly recorded release
of the Property shall constitute a reassignment of the Leases by the Beneficiary
to the Trustor. Trustor shall pay all reasonable fees of Beneficiary and costs
of

                                       31
<PAGE>   35
recordation, if any, in connection with such release or cancellation. The
recitals in such release of any matters or facts shall be conclusive proof of
the truthfulness thereof.

         Section 4.7 Statute of Limitations. Trustor hereby expressly waives and
releases to the fullest extent permitted by law, the pleading of any statute of
limitations as a defense to any and all obligations secured by this Deed of
Trust.

         Section 4.8 Interpretation. Wherever used in this Deed of Trust, unless
the context otherwise indicates a contrary intent, or unless otherwise
specifically provided herein, the word "Trustor" shall mean and include both
Trustor and any subsequent owner or owners of the Property, and the word
"Beneficiary" shall mean and include not only the original Beneficiary hereunder
but also any future owner and holder, including pledgees, of the Note or other
obligations secured hereby. In this Deed of Trust whenever the context so
requires, the masculine gender includes the feminine and/or neuter, and the
neuter includes the feminine and/or masculine, and the singular number includes
the plural. In this Deed of Trust, the use of the word "including" shall not be
deemed to limit the generality of the term or clause to which it has reference,
whether or not non-limiting language (such as "without limitation," or "but not
limited to," or words of similar import) is used with reference thereto.

         Section 4.9 Captions. The captions and headings of the Articles and
sections of this Deed of Trust are for convenience only and are not to be used
to interpret, define or limit the provisions hereof.

         Section 4.10 Consent. The granting or withholding of consent by
Beneficiary to any transaction as required by the terms hereof shall not be
deemed a waiver of the right to require consent to future or successive
transactions. Trustor covenants and agrees to reimburse Beneficiary promptly on
demand for all legal and other expenses incurred by Beneficiary or its servicing
agent in connection with all requests by Trustor for consent or approval under
this Deed of Trust.

         Section 4.11 Delegation to Subagents. Wherever a power of attorney is
conferred upon Beneficiary hereunder, it is understood and agreed that such
power is conferred with full power of substitution, and Beneficiary may elect in
its sole discretion to exercise such power itself or to delegate such power, or
any part thereof, to one or more subagents.

         Section 4.12 Successors and Assigns. All of the grants, obligations,
covenants, agreements, terms, provisions and conditions herein shall run with
the land and shall apply to, bind and inure to the benefit of, the heirs,
administrators, executors, legal representatives, successors and assigns of
Trustor (but this shall not permit any assignment prohibited hereby) and the
successors in trust of Trustee and the endorsees, transferees, successors and
assigns of Beneficiary. In the event Trustor is composed of more than one party,
the obligations, covenants, agreements, and warranties contained herein as well
as the obligations arising therefrom are and shall be joint and several as to
each such party.

                                       32
<PAGE>   36
         SECTION 4.13 GOVERNING LAW. THIS DEED OF TRUST IS INTENDED TO BE
GOVERNED BY AND CONSTRUED UNDER THE LAWS OF THE STATE IN WHICH THE PROPERTY IS
LOCATED. TO THE EXTENT PERMITTED BY LAW, TRUSTOR HEREBY WAIVES ITS RIGHT TO A
TRIAL BY JURY.

         Section 4.14 Substitution of Trustee. Trustee may resign by an
instrument in writing addressed to Beneficiary, or Trustee may be removed at any
time with or without cause by an instrument in writing executed by Beneficiary.
In case of the death, resignation, removal or disqualification of Trustee or if
for any reason Beneficiary shall deem it desirable to appoint a substitute or
successor trustee to act instead of the herein named trustee or any substitute
or successor trustee, then Beneficiary shall have the right and is hereby
authorized and empowered to appoint a successor trustee, or a substitute
trustee, without other formality than appointment and designation in writing
executed by Beneficiary, and the authority hereby conferred shall extend to the
appointment of other successor and substitute trustees successively until the
indebtedness hereby secured has been paid in full or until the Property is sold
hereunder. In the event the indebtedness hereby secured is owned by more than
one person or entity, the holder or holders of not less than a majority in the
amount of such indebtedness shall have the right and authority to make the
appointment of a successor or substitute trustee provided for in the preceding
sentence. Such appointment and designation by Beneficiary or by the holder or
holders of not less than a majority of the indebtedness hereby secured shall be
full evidence of the right and authority to make the same and of all facts
therein recited, as to such appointment. If Beneficiary is a corporation and
such appointment is executed in its behalf by an officer of such corporation,
such appointment shall be conclusively presumed to be executed with authority
and shall be valid and sufficient without proof of any action by the board of
directors or any superior officer of the corporation. Upon the making of any
such appointment and designation, all of the estate and title of Trustee in the
Property shall vest in the named successor or substitute trustee and he shall
thereupon succeed to and shall hold, possess and execute all the rights, powers,
privileges, immunities and duties herein conferred upon the Trustee; but
nevertheless, upon the written request of Beneficiary or of the successor or
substitute Trustee, Trustee ceasing to act shall execute and deliver an
instrument transferring to such successor or substitute Trustee all of the
estate and title in the Property of Trustee so ceasing to act, together with all
the rights, powers, privileges, immunities and duties herein conferred upon
Trustee, and shall duly assign, transfer and deliver any of the properties and
moneys held by said Trustee hereunder to said successor or substitute Trustee.
All references herein to Trustee shall be deemed to refer to Trustee (including
any successor or substitute appointed and designated as herein provided) from
time to time acting hereunder. Trustor hereby ratifies and confirms any and all
acts which the herein named Trustee or his successor or successors, substitute
or substitutes, in this trust, shall do lawfully by virtue hereof. Trustee shall
not be liable for any error of judgment or act done by Trustee, or be otherwise
responsible or accountable under any circumstances whatsoever, except for
Trustee's willful misconduct. Trustee shall have the right to rely on any
instrument, document or signature authorizing or supporting any action taken or
proposed to be taken by him hereunder, believed by him in good faith to be
genuine. All moneys received by Trustee shall, until used or applied as herein
provided, be held in trust for the purposes for which they were received, but
need not be segregated in any manner from any other moneys (except to the extent
required by law), and Trustee shall be under no liability for interest on any
moneys received by

                                       33
<PAGE>   37
him hereunder. TRUSTOR WILL REIMBURSE TRUSTEE FOR, AND INDEMNIFY AND SAVE HIM
HARMLESS AGAINST, ANY AND ALL LIABILITY AND EXPENSES WHICH MAY BE INCURRED BY
HIM IN THE PERFORMANCE OF HIS DUTIES HEREUNDER, INCLUDING, BUT NOT LIMITED TO,
ANY LIABILITY AND EXPENSES BASED UPON OR ARISING OUT OF THE NEGLIGENCE OR STRICT
LIABILITY OF TRUSTEE BUT EXCLUDING ANY LIABILITY BASED UPON OR ARISING OUT OF
THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF TRUSTEE.

         Section 4.15 Changes in Taxation. If, after the date of this Deed of
Trust, any law is passed by the state in which the Property is located or by any
other governing entity, imposing upon Beneficiary any tax against the Property,
or changing in any way the laws for the taxation of mortgages or deeds of trust
or debts secured by mortgages or deeds of trust so that an additional or
substitute tax is imposed on Beneficiary or the holder of the Note, Trustor
shall reimburse Beneficiary for the amount of such taxes immediately upon
receipt of written notice from Beneficiary. Provided, however, that such
requirement of payment shall be ineffective if Trustor is permitted by law to
pay the whole of such tax in addition to all other payments required hereunder,
without any penalty or charge thereby accruing to Beneficiary and if Trustor in
fact pays such tax prior to the date upon which payment is required by such
notice.

         Section 4.16 Maximum Interest Rate. No provision of this Deed of Trust
or of the Note or of any note evidencing a Future Advance shall require the
payment or permit the collection of interest in excess of the maximum
non-usurious rate permitted by applicable law. In the event such interest does
exceed the maximum legal rate, it shall be canceled automatically to the extent
that such interest exceeds the maximum legal rate and if theretofore paid,
credited on the principal amount of the Note or, if the Note has been prepaid,
then such excess shall be rebated to Trustor. All amounts paid or agreed to be
paid which would under applicable law be deemed "interest" shall, to the extent
permitted by such applicable law, be amortized, prorated, allocated and spread
throughout the stated term of the Note. The term "applicable law" as used in
this paragraph shall mean the law in effect from time to time which lawfully
permits the charging and collection of the highest permissible, lawful,
nonusurious rate of interest on the transactions herein contemplated, including
laws of the State of Texas and the United States of America; and the term
"maximum legal rate" as used in this paragraph shall mean, with respect to each
portion of the indebtedness secured hereby, the maximum, lawful, nonusurious
rate of interest (if any) which under applicable law Beneficiary is permitted to
charge from time to time with respect to such portion of the indebtedness
secured.

         Section 4.17 Time of Essence. Time is of the essence of the obligations
of Trustor in this Deed of Trust and each and every term, covenant and condition
made herein by or applicable to Trustor.

         Section 4.18 Reproduction of Documents. This Deed of Trust and all
documents relating thereto, specifically excluding the Note but including,
without limitation, consents, waivers and modifications which may hereafter be
executed, financial and operating statements, certificates and other information
previously or hereafter furnished to Beneficiary, may be reproduced by
Beneficiary by any photographic, photostatic, microfilm, micro-card, miniature

                                       34
<PAGE>   38
photographic or other similar process. Trustor agrees and stipulates that any
such reproduction is an original and shall be admissible in evidence as the
Master in any judicial or administrative proceeding (whether or not the Master
is in existence and whether or not such reproduction was made or preserved by
Beneficiary in the regular course of business) and any enlargement, facsimile or
further reproduction of such a reproduction shall be no less admissible.

         Section 4.19 No Oral Modifications. This Deed of Trust may not be
amended or modified orally, but only by an agreement in writing signed by the
party against whom enforcement of any amendment or modification is sought.

         Section 4.20 Trustee Provisions. Trustee accepts this Trust when this
Deed of Trust, duly executed and acknowledged is made a public record as
provided by law. The Trust created hereby is irrevocable by Trustor. Trustee,
upon presentation to it of an affidavit signed by or on behalf of Beneficiary,
setting forth any facts showing a default by Trustor under any of the terms or
conditions of this Deed of Trust, is authorized to accept as true and conclusive
all facts and statements in such affidavit and to act hereunder in complete
reliance thereon. Trustee shall be under no obligation to notify any party
hereof of any action or proceeding of any kind in which Trustor, Beneficiary
and/or Trustee shall be a party, unless brought by Trustee, or of any pending
sale under any other deed of trust. The necessity of Trustee's making oath,
filing inventory or giving bond as security for the execution of this Deed of
Trust, as may now be or hereafter required by the laws of the state in which the
Property is located, is hereby expressly waived.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       35
<PAGE>   39
         IN WITNESS WHEREOF, the undersigned has executed this Deed of Trust as
of the day and year first hereinabove written.

                                      TRUSTOR:

                                      ROYAL BODYCARE, INC.,
                                      a Nevada corporation

                                      By: /s/ Clinton H. Howard
                                      Name:    Clinton H. Howard
                                      Title:   President, CEO

THE STATE OF TEXAS                 >
                                   >
COUNTY OF _______________          >

           Before me the undersigned, a Notary Public in and for said County in
said State, personally appeared Clinton H. Howard, President and CEO of Royal
Bodycare, Inc., a Nevada corporation, known to me (or proved to me on the basis
of satisfactory evidence) to be the person whose name is subscribed to the
within instrument and acknowledged to me that he executed the same in his
authorized capacity, as the act and deed of said corporation.

           Given under my hand and official notarial seal this the ______ day of
March, 2001.

                                   --------------------------------------------
                                   Notary Public
(AFFIX NOTARIAL SEAL)              My Commission Expires:
                                                         ----------------------

                                       36
<PAGE>   40
                                    EXHIBIT A

                             (Property Description)
<PAGE>   41
                                    EXHIBIT B

                                (Fixture Filing)

         Pursuant to the security agreement contained in this Deed of Trust
("Security Agreement") and the appropriate Uniform Commercial Code ("UCC")
sections in the State in which the Fixtures are located, as amended and
recodified from time to time, this Deed of Trust shall constitute a Fixture
Filing.

         1. Description of Fixtures. "Fixtures" shall include all articles of
personal property now or hereafter attached to, placed upon for an indefinite
term or used in connection with said real property, appurtenances and
improvements together with all goods and other property which are or at any time
become so related to the Property that an interest in them arises under real
estate law.

         2. Description of Collateral. The Collateral, as defined in the
Security Agreement, includes, without limitation, the following items and types
of Collateral as well as certain other items and types of Collateral:

         Subject to the exclusion set forth in the description of the Collateral
and Property set forth hereinabove. All equipment, fixtures, goods, inventory
and all present and future accessions and products thereof and thereto as
defined in the UCC, now or at any time acquired, used, or to be used for or in
connection with the construction, use or enjoyment of the Property by Trustor,
whether in the possession of Trustor, warehousemen, bailees or any other person
and whether located at the Property or elsewhere, including without limitation:

         A.       all building, maintenance or service equipment; building,
                  maintenance or raw materials or supplies; component parts or
                  work in process; appliances; furnishings; machinery; and
                  tools; and

         B.       all goods and property covered by any warehouse receipts,
                  bills of lading and other documents evidencing any goods or
                  other tangible personal property of any kind (including any
                  Collateral) in which Trustor now or at any time hereafter has
                  any interest in connection with any or all of the Property or
                  Collateral; and

         C.       any and all products of any accessions to any such Collateral
                  which may exist at any time.

Part of the above described goods are or are to become Fixtures on the Property.
As used in this Exhibit to qualify the scope of Beneficiary's security interest
in any of the Collateral, the phrase "in connection with any or all of the
Property or Collateral" shall be used in its broadest and most comprehensive
sense and shall include without limitation property used or acquired (or to be
used or acquired) in connection with the improvement, development, construction,
repair or remodeling of any or all of the Property, property arising from or in
connection with the

                                       1
<PAGE>   42
operation, use, maintenance, occupancy, sale, lease or disposition of any or all
of the Property or Collateral, property used or acquired (or to be used or
acquired) in connection with Trustor's performance of any of its obligations to
Beneficiary, and property acquired with any loan proceeds. If any property is
used (or to be used) for multiple or different purposes, and one such purpose
relates to any aspect of the Property or collateral, such property shall
constitute Collateral hereunder, unless Beneficiary shall release such property
from this Fixture Filing and Beneficiary's security interest in a duly executed
written instrument.

         3. Relation of Fixture filing to Deed of Trust. Some or all of the
Collateral described in Section 2 above may be or become Fixtures in which
Beneficiary has a security interest under the Security Agreement. However,
nothing herein shall be deemed to create any lien or interest in favor of the
Trustee under this Deed of Trust in any such Collateral which is not a fixture,
and the purpose of this Exhibit B is to create a fixture filing under the
appropriate Uniform Commercial Code sections in the State in which the Fixtures
are located, as amended or recodified from time to time. The rights, remedies
and interests of Beneficiary under this Deed of Trust are independent and
cumulative, and there shall be no merger of any lien hereunder with any security
interest created by the Security Agreement. Beneficiary may elect to exercise or
enforce any of its rights, remedies, or interests under this Deed of Trust as
Beneficiary may from time to time deem appropriate.

         4. Name and Address of Beneficiary:

                  Allstate Life Insurance Company
                  3075 Sanders Road, Suite G5C
                  Northbrook, IL 60062
                  Attention: Commercial Mortgage Loan Servicing Division

         5. Other Fixture Financing and Removal of Fixtures. (A) Beneficiary has
not consented to any other security interest of any other person in any Fixtures
and has not disclaimed any interest in any Fixtures; and (B) Beneficiary has not
agreed or consented to the removal of any Fixtures from the Property, and any
such consent by Trustor shall not be binding on Beneficiary. Beneficiary
reserves the right to prohibit the removal of any Fixtures by any person with
the legal right to remove any Fixtures from the Property unless and until such
person makes arrangements with (and satisfactory to) Beneficiary for the payment
to Beneficiary of all costs of repairing any physical injury to the Property
which may be caused by the removal of such Fixtures. Any such payment shall be
made directly to Beneficiary at its request, and Beneficiary may hold such
payment as additional collateral under this Deed of Trust. Failure by Trustor to
cause the delivery to Beneficiary of any such payment shall constitute both: (1)
waste under (and breach of) this Deed of Trust; and (2) conversion of Collateral
under (and a breach of) the Security Agreement.

                                       2
<PAGE>   43
                                   EXHIBIT C

1.       The following restrictive covenants of record itemized below:

         Recorded in Volume 73166, Page 1001, Volume 77154, Page 1096, Volume
         79122, Page 749, Volume 82071, Page 3244, Volume 84213, Page 2741, and
         Volume 75073, Page 494, refiled in Volume 75105, Page 856, all of which
         are filed of record in the Real Property Records, Dallas County, Texas.

2.       Any shortages in area.

3.       The following matters and terms of the documents creating or offering
         evidence of the matters:

         (a)      A utility easement, 15 feet in width, located along the
                  south, east and west property line, as reflected by the plat
                  recorded in Volume 77097, Page 406, Map Records, Dallas
                  County, Texas, as shown on survey dated 2/7/2001, by James L.
                  Brittain, RPLS #1674, of Brittain & Crawford, Job/Project
                  98-07-00181.

         (b)      Subject to the Order Adopting Airport Zoning Regulations of
                  the Dallas-Fort Worth Regional Airport, Ordinance No. 71-100,
                  imposed by the Joint Airport Zoning Board of the Dallas-Fort
                  Worth Regional Airport, filed September 2, 1982, recorded in
                  Volume 82173, Page 0178, Real Property Records, Dallas County,
                  Texas.

         (c)      Terms and conditions of Avigation Release, as reflected by
                  the plat recorded in Volume 77097, Page 406, Map Records,
                  Dallas County, Texas.

         (d)      Building set back line, 30 feet from the east property line
                  and a portion of the south property line, as shown by plat
                  recorded in Volume 77097, Page 406, Map Records of Dallas
                  County, Texas, as shown on survey dated 2/7/2001, by James L.
                  Brittain, RPLS #1674, of Brittain & Crawford, Job/Project
                  98-07-00181.

                                       1
<PAGE>   44
                                   SCHEDULE 1

1.       Machinery:

         (a)      KMC SPFS Platon Filler

         (b)      Kinex SWTE-16 Cap Tightener

         (c)      Autolabe 620 Labeler

         (d)      Charlotte ND-7 Colloid Mill

         (e)      Permason Jovc 475 Gal Jacketed Tank

         (f)      550 Gal Tank w/Agitator

         (g)      Lee 30 Gal Kettle

         (h)      Drum Cradle

         (i)      Drum Truck

         (j)      Pressure Washer 2000 PSI

         (k)      Bench Scale D-5

         (l)      Platform Scale E854F-50P

         (m)      Electroflo PS34 Filling Machine

         (n)      Pump Centrifugal

         (o)      Bottle Indexer

         (p)      Conveyors 2 ea

         (q)      Variable Speed Drives 2 ea

         (r)      Supply Tank Modified

         (s)      Heat Shrink Tunnel

         (t)      Tank 1025 Gal 2 ea

         (u)      Tank 305 Gal

         (v)      Crane 1 Ton

         (w)      Fiber Drum Lifter

         (x)      Drum Cradle

         (y)      Pump, Magnetic Drive

         (z)      Pump, Magnetic Drive

         (aa)     Rack

         (bb)     Stepladder, Fiberglass

         (cc)     N-Sink-Erator

         (dd)     Pallet Truck Standard

         (ee)     Hot Water Heater 50 Gal

         (ff)     Hot Water Heater 100 Gal

         (gg)     Wet/Dry Vacuum

         (hh)     Air Compressor

         (ii)     Ink Jet Printer

         (jj)     Mixer, Neptune D-4

         (kk)     Refrigerated Trailer

         (ll)     10 Filling Trays (Required for Lip Balm)

         (mm)     Motorized Collection Table

         (nn)     Air Driven Mixer

         (oo)     Spare Parts

                                       1
<PAGE>   45
         (pp)     Dayton Pumps, -1/4 HP 2 ea

         (qq)     Aro Diaphram Variable Speed Air Pump

         (rr)     Ohaus Portable Check Weight Scale, 500g

2.       Hardware and related software and accessories, including but not
limited to all replacements, parts, repairs, additions and attachments
incorporated therein or affixed thereto, now or hereafter acquired.

3.       One (1) Compaq Proliant 4500 P5/133 P/N: 213420-004, S/N: 6547HRW40415
Mod 2, P5/133 CPU W/2MB Cache, 2nd P5/133 CPU, 64 MB RAM, Integrated; Fast wide
SCSI Adapter, SVGA, 4X CD ROM Dr., 1.44 MB FD, 2 ser, 1 par, 101 Enhanced
keyboard, mouse.

4.       Four (4) Compaq 2.1 GB Pluggable hard drive P/N: 146742-007, SN:
K3965391, T3353478, K3450953, T3365166.

5.       One (1) OCE" 2475s/16682 together with all spare parts, accessories,
attachments, replacements, substitutions, and additions thereto now or hereafter
acquired and the proceeds thereof (including insurance proceeds).

6.       Fourteen (14) refurbed Herman Miller 6x6 panels.

7.       Eleven (11) 5 drawer lateral files

8.       Fifty-seven (57) Recovered Herman Miller Equa task chairs

9.       Three (3) Recovered Herman Miller Equa side chairs

10.      One (1) Provide category 3 voice/modem cables

11.      One (1) Provide category 5 RJ45 patch cables

12.      One (1) Provide RJ11 patch cables

13.      One (1) Provide trunk cable

14.      One (1) Wooden coffee bar

15.      One (1) Wooden display cases

16.      One (1) Wooden reception

17.      One (1) Wooden cashier's desk

18.      One (1) BTA S-2000.

19.      Axxess Telephone System, including all substitutions, modifications,
replacements and proceeds thereof.

                                       2
<PAGE>   46
20.      12K InkJet Printer AM1 Folder Inserter 8000 Tabber Equipment.

21.      One (1) project-royal bulk system 175 unarco uprights 330 pr unarco
beams 1 lot 12" row ties & wall ties 1 versa conveyor (25'-0) 2 LSA Conveyors
(93'-0) & (58"-0) 1 LSD Conveyors (spurline Lineshaft) 5 Versa Gravity Conveyors
1 84" High Spaceguard Wire (Partitioning).

22.      Category 5 data cable Three (3) 5-drawer later file Fifteen (15) Herman
Miller chairs.

23.      One (1) used refurbished Kohler generator S/N 4358471 - Used
refurbished UPS system 75 KVA EPE S/N 573779-021 - New diesel fuel tank system -
One (1) Cogan Wire Partitioning 7' High Color Light Grey - Two (2) 4"x4"x1/4"
structural angel 10' long - One (1) 4"x4"x1/4" structural angel 8' long.

24.      All computer equipment and peripherals, wherever located heretofore or
hereafter, including, without limitation, all substitutions, additions
accessions and replacements thereto, and thereof, now or hereafter installed in,
affixed to, or used in, conjunction with the aforesaid equipment and proceeds
thereof, together with all rental or installment payments, insurance proceeds,
other proceeds and payments due and to become due and arising from or relating
to said equipment.

25.      Various Epicor Software & Professional Services as detailed in vendor
invoices held at Leastec Systems Credit, together with any and all
substitutions, replacements or exchanges therefor, replacement parts, additions,
attachments and accessories incorporated therein or affixed thereto, or used in
connection therewith, and proceeds thereof (both cash and non-cash), including
insurance proceeds and also including, without limitation, claims of the Debtor
against third parties for loss or damage to, or destruction of, such equipment.

26.      Globenet Software-License to World 2000 Source Code, including interim
use of Enterprise 4.0.

                                       3

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