Document:

Exhibit 10.6

                                CONSTRUCTION LOAN
                                 PROMISSORY NOTE

DATE:                                April 4, 2006

                                    Atlantis Laboratories, Inc.

BORROWER:                           408 Hall Street
                                    Conroe, Texas 77301

                                    Mark Potter
                                    408 Hall Street
                                    Conroe, Texas 77301

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

MAXIMUM AMOUNT:                     $650,000

INTEREST RATE:                      Six and one-half percent (6-1/2%)

MATURITY DATE:                      April 1, 2016

         FOR VALUE RECEIVED, Each Borrower, jointly and severally,  promises and
agrees to the following:

         1. PROMISE TO PAY.  Borrower  promises to pay to Lender,  or order,  in
lawful  money of the  United  States of  America,  the  principal  amount of SIX
HUNDRED FIFTY THOUSAND AND NO/100THS DOLLARS ($650,000) (the "LOAN"), or so much
thereof as may be  outstanding  hereunder,  together with interest on the unpaid
outstanding principal balance calculated from the date of each advance hereunder
until repaid as set forth below.

         2. ADVANCES OF PRINCIPAL.  Lender will make advances to Borrower  under
this Note from time to time in  connection  with the  construction  of a factory
building  on certain  real  property  located  in the City of Conroe,  County of
Montgomery,  Texas (the  "PROPERTY")  pursuant to the terms of the  Construction
Loan Agreement executed by Borrower and Lender  contemporaneously  herewith (the
"LOAN AGREEMENT").  The obligations of Borrower under the Loan shall be governed
by and performed in accordance  with the terms and  conditions of this Note, the
Loan Agreement, one or more Deeds of Trust executed  contemporaneously  herewith
or in the future as security  for the  obligations  of  Borrower  under the Note
(collectively, the "DEED OF TRUST"), and any and all other documents evidencing,
securing or otherwise governing the Loan  (collectively,  the "LOAN DOCUMENTS").
Except as expressly  provided  otherwise in this Note,  the defined terms in the
Loan Documents are used herein with the same meaning.

         3. INTEREST.  The principal balance of this Note shall bear interest at
a rate per annum equal to six and one-half percent (6-1/2%).

<PAGE>

                  3.1 DEFAULT  RATE.  The  "DEFAULT  RATE"  applicable  upon the
occurrence  of a default as set forth  below  shall be a rate per annum equal to
the lesser of (a) eighteen  percent (18%) per annum,  or (b) the Maximum  Lawful
Rate as determined in accordance with Paragraph 8 hereof.

                  3.2  CALCULATION   AND  ADJUSTMENT.   All  interest  shall  be
calculated  by applying the  applicable  interest  rate over a year of 360 days,
times the amount on which the interest is to accrue,  times the actual number of
days that amount is outstanding.

         4. PAYMENT.

                  4.1 INTEREST  ONLY  PERIOD.  Monthly  installment  payments of
interest only on the  outstanding  principal  balance shall be due commencing on
the first day of the month  following  the initial  advance  under this Note and
continuing on the first day of each  subsequent  month up to and including April
1, 2007.

                  4.2  PRINCIPAL AND  INTEREST.  Commencing on May 1, 2007,  and
continuing  on the  first  day  of  each  calendar  month  thereafter  up to and
including April 1, 2016, installment payments of principal and interest shall be
due in such amount as will be  sufficient  to pay off in 108 equal  payments all
principal and accrued interest, with the final payment due on the Maturity Date.
All principal not  previously  repaid,  unpaid  interest,  and any other amounts
owing under the Loan Documents shall be due in full on the Maturity Date.

                  4.3  APPLICATION  OF  PAYMENTS.  Payments  received  shall  be
applied first to accrued  interest and then in such order as Lender may elect in
its sole  discretion.  Remittances  in payment  of any part of the  indebtedness
other than in the required amount in immediately available U.S. funds shall not,
regardless of any receipt or credit issued  therefor,  constitute  payment until
the required  amount is actually  received by the holder  hereof in  immediately
available  U.S.  funds and shall be made and accepted  subject to the  condition
that any check or draft may be handled for  collection  in  accordance  with the
practices of the collecting bank or banks.

                  4.4 MATURITY. The entire principal balance under this Note and
all accrued interest  thereon shall become  immediately due and payable on April
1, 2016.

         5. PREPAYMENT. Borrower may prepay all or any part of the principal and
accrued  interest  on  this  Note  without  premium  or  penalty,   but  partial
prepayments shall not affect the amount or due date of subsequent installments.

         6. DEFAULT.  If Borrower  fails to pay any  installment or other amount
due  hereunder  or upon the  occurrence  of any  other  default  under  the Loan
Documents  that is not cured within the  applicable  cure period (if any), or if
Borrower defaults under any other loan or obligation owed to Lender or any third
party  (each  an  "EVENT  OF  Default"),  the Loan  may be  accelerated  and the
outstanding  principal  balance hereof become  immediately  due and payable,  at
Lender's option and without notice to Borrower,  and Lender shall be entitled to
pursue any and all rights and remedies  available to it under the Loan Documents
or under law.  Borrower shall reimburse  Lender on demand for all legal fees and
other expenses  incurred in collecting

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<PAGE>

or enforcing this Loan and/or  protecting or realizing on any collateral for the
Loan (including, without limitation, those incurred with or without suit, in any
appeal,   bankruptcy,   insolvency,  or  receivership  proceeding,   and/or  any
post-judgment  collection  proceedings),  plus  interest on such  amounts at the
Default Rate as set forth below.

         7. LATE CHARGE AND DEFAULT  INTEREST.  If any installment due hereunder
is not paid in full  within  fifteen  (15) days of the date due,  Lender  shall,
without notice, be entitled to charge,  and Borrower shall pay on demand, a late
charge equal to five percent (5%) of the delinquent  amount (the "LATE CHARGE").
This  provision  for late  charges  shall not be  deemed to extend  the time for
payment or be a "grace  period" or "cure period" that gives the Borrower a right
to cure an Event of Default.  Imposition of late charges is not contingent  upon
the giving of any notice or lapse of any cure  period  provided  for in the Loan
Documents.  In addition,  and  regardless of whether Lender elects to accelerate
this Note,  the entire  principal  balance and all accrued  interest  shall bear
interest  from the date of default  (without  regard to any  applicable  cure or
notice period) at the Default Rate,  which shall be payable on demand.  Borrower
recognizes that a default causes Lender economic loss and additional  expense in
connection  with the Loan and that the  amount of  damages  caused  thereby  are
difficult and  impracticable to ascertain.  Borrower agrees that the Late Charge
and the Default Rate are reasonably calculated to cover such damage and expenses
to Lender,  and shall be in addition to all other rights and remedies  available
to Lender.  Nothing  herein  shall be construed as an agreement to accept at any
time  less  than the full  amount  then due,  or as a waiver  or  limitation  of
Lender's right to enforce strict performance.

         8. MAXIMUM  INTEREST RATE. It is expressly  stipulated and agreed to be
the  intent  of  Maker  and  Payee  at all  times to  comply  strictly  with the
applicable Texas law governing the maximum rate or amount of interest payable on
this note or the  Related  Indebtedness  (hereinafter  defined)  (or  applicable
United  States  federal law to the extent that it permits Payee to contract for,
charge,  take,  reserve or receive a greater amount of interest than under Texas
law).  If the  applicable  law is ever  judicially  interpreted  so as to render
usurious any amount:  (i) contracted for, charged,  taken,  reserved or received
pursuant  to  this  note,   any  of  the  other  Loan  Documents  or  any  other
communication  or  writing  by  or  between  Maker  and  Payee  related  to  the
transaction or  transactions  that are the subject matter of the Loan Documents;
(ii)  contracted for,  charged or received by reason of Payee's  exercise of the
option to accelerate the maturity of this note and/or the Related  Indebtedness;
or (iii)  Maker  will have paid or Payee  will  have  received  by reason of any
voluntary prepayment by Maker of this note and/or the Related Indebtedness, then
it is Maker's and Payee's  express intent that all amounts  charged in excess of
the Maximum Lawful Rate shall be  automatically  cancelled,  ab initio,  and all
amounts in excess of the Maximum  Lawful  Rate  theretofore  collected  by Payee
shall be  credited  on the  principal  balance of this note  and/or the  Related
Indebtedness  (or, if this note and all Related  Indebtedness have been or would
thereby be paid in full, refunded to Maker), and the provisions of this note and
the  other  Loan  Documents  immediately  be  deemed  reformed  and the  amounts
thereafter  collectible hereunder and thereunder reduced,  without the necessity
of the execution of any new document,  so as to comply with the applicable  law,
but so as to permit the  recovery of the  fullest  amount  otherwise  called for
hereunder and thereunder;  provided, however, if this note has been paid in full
before the end of the stated term of this note,  then Maker and Payee agree that
Payee shall,  with reasonable  promptness after Payee discovers or is advised by
Maker that  interest was

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<PAGE>

received in an amount in excess of the Maximum  Lawful Rate,  either refund such
excess  interest to Maker and/or credit such excess  interest  against this note
and/or  any  Related  Indebtedness  then owing by Maker to Payee.  Maker  hereby
agrees  that as a  condition  precedent  to any claim  seeking  usury  penalties
against Payee,  Maker will provide  written  notice to Payee,  advising Payee in
reasonable  detail of the nature and amount of the  violation,  and Payee  shall
have sixty (60) days after receipt of such notice in which to correct such usury
violation,  if any,  by  either  refunding  such  excess  interest  to  Maker or
crediting such excess interest against this note and/or the Related Indebtedness
then owing by Maker to Payee.  All sums contracted  for,  charged or received by
Payee for the use,  forbearance  or detention of any debt evidenced by this note
and/or the Related  Indebtedness  shall,  to the extent  permitted by applicable
law, be amortized or spread,  using the actuarial method,  throughout the stated
term of this note and/or the Related Indebtedness (including any and all renewal
and  extension  periods)  until  payment  in full so that the rate or  amount of
interest on account of this note and/or Related Indebtedness does not exceed the
Maximum  Lawful  Rate from time to time in effect  and  applicable  to this note
and/or the Related Indebtedness for so long as debt is outstanding.  In no event
shall the  provisions of Chapter 346 of the Texas Finance Code (which  regulates
certain revolving credit loan accounts and revolving triparty accounts) apply to
this note  and/or the  Related  Indebtedness.  Notwithstanding  anything  to the
contrary  contained herein or in any of the other Loan Documents,  it is not the
intention  of Payee to  accelerate  the  maturity of any  interest  that has not
accrued at the time of such  acceleration or to collect unearned interest at the
time of such acceleration.  As used herein, the term "Maximum Lawful Rate" shall
mean the maximum lawful rate of interest which may be contracted  for,  charged,
taken,  received or reserved by Payee in accordance  with the applicable laws of
the State of Texas (or  applicable  United States federal law to the extent that
it permits Payee to contract  for,  charge,  take,  receive or reserve a greater
amount of  interest  than under  Texas  law),  taking  into  account all Charges
(hereinafter  defined) made in connection with the transaction evidenced by this
note and the other Loan Documents. As used herein, the term "Charges" shall mean
all fees,  charges  and/or any other things of value,  if any,  contracted  for,
charged,   received,   taken  or  reserved  by  Payee  in  connection  with  the
transactions  relating  to this note and the  other  Loan  Documents,  which are
treated as interest  under  applicable  law. As used herein,  the term  "Related
Indebtedness"  shall  mean any and all debt  paid or  payable  by Maker to Payee
related to the  transaction or  transactions  that are the subject matter of the
Loan  Documents,  except such debt which has been paid or is payable by Maker to
Payee under this note. To the extent that Payee is relying on Chapter 303 of the
Texas  Finance  Code to determine  the Maximum  Lawful Rate payable on this note
and/or the Related Indebtedness, Payee will utilize the weekly ceiling from time
to time in effect as provided  in such  Chapter  303, as amended.  To the extent
United States federal law permits Payee to contract for, charge,  take,  receive
or reserve a greater amount of interest than under Texas law, Payee will rely on
United States  federal law instead of Chapter 303 for the purpose of determining
the Maximum Lawful Rate. Additionally, to the extent permitted by applicable law
now or  hereafter  in effect,  Payee  may,  at its option and from time to time,
utilize any other  method of  establishing  the  Maximum  Lawful Rate under such
Chapter 303 or under other  applicable  law by giving  notice,  if required,  to
Maker as provided by applicable law now or hereafter in effect.

         9. BUSINESS  PURPOSE.  Borrower  represents and warrants to Lender that
the proceeds of this Note shall be used by Borrower  exclusively  for commercial
and business

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<PAGE>

purposes,  and that none of the  proceeds of this Note shall be used by Borrower
for personal, family, or household purposes.

         10. WAIVERS. Borrower and all guarantors, sureties and endorsers hereof
waive presentation and demand for payment, protest, and notice of demand, notice
of  acceleration,   notice  of  intent  to  accelerate,  protest,  dishonor  and
nonpayment, and agree Lender shall be entitled to take any action with regard to
this Loan (including renewals, extensions, or modifications of the Note; release
of  parties  liable or any  security  for the Loan),  without  notice to them or
impairment  of their  liability to Lender,  Lender's  acceptance  of any full or
partial  payment,  Late Charge,  or Default  Interest  will not waive default or
constitute  consent to any sale or transfer of secured  property  regardless  of
Lender's knowledge.  Lender may elect to waive all or part of any right, payment
or obligation  owing to it and such waiver or any failure to exercise its rights
and  remedies  shall not be deemed a waiver or  release as to any  default,  and
waiver as to any particular  breach shall not be deemed waiver or consent to any
subsequent default.

         11.  MISCELLANEOUS.  Subject to applicable  law, this Note shall (a) be
construed  and  otherwise  governed  by the laws of the state of Texas,  without
regard to that state's  choice of law rules;  (b) not be modified or  terminated
orally,  but only by a  modification  or  termination  in writing  and signed by
Lender;  and (c) be binding on and inure to the benefit of  Borrower  and Lender
and their  respective  successors and assigns,  subject to any  prohibitions  on
assignment contained in the Loan Documents.  Time is of the essence of this Note
and the performance of each of the agreements and provisions  contained  herein.
Each  person and entity  signing or  otherwise  liable for this Note agrees that
each is jointly and  severally  liable  hereunder as a  principal,  and not as a
surety. If Borrower is an individual and resides in a community  property state,
then unless this  obligation is  specifically  described as a separate  property
obligation  (by a  notation  either  on the face  page of this Note or under the
signature  line),  any  married  person who signs this Note  warrants  that this
obligation is incurred on behalf of his or her marital community and agrees that
it shall bind the marital community.  A determination that any provision of this
Note is unenforceable or invalid shall not affect the enforceability or validity
of any  other  provision  and the  determination  that  the  application  of any
provision  of this Note to any  person,  entity or  circumstance  is  illegal or
unenforceable  shall not affect the enforceability or validity of such provision
as it may  apply to other  persons,  entities  or  circumstances.  Captions  and
headings  in this  Note are for  convenience  only and shall be  disregarded  in
construing it.

         12.  JURISDICTION  AND VENUE.  Each Borrower agrees that all actions or
proceedings  arising in  connection  with this Note shall be tried and litigated
only in the state and federal courts located in the City of Dallas,  Texas. Each
Borrower  hereby  waives any right he or it may have to assert the  doctrine  of
forum non  conveniens  or to object to venue to the  extent  any  proceeding  is
brought in accordance  with this Paragraph 12 and stipulates  that the state and
federal  courts  located in the City of  Dallas,  Texas  shall have in  personam
jurisdiction and venue over each Borrower for the purpose of litigating any such
dispute,  controversy  or proceeding  arising out of or related to this Note. To
the  extent  permitted  by law,  service  of  process  sufficient  for  personal
jurisdiction  in any action  against each  Borrower may be made by registered or
certified mail, return receipt requested, to the addresses indicated in the Loan
Agreement.  Nothing  herein  shall limit the right of Lender to maintain a legal
proceeding in the State of Texas if it shall so elect.

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<PAGE>

         13.  RECOURSE.  BORROWER  ACKNOWLEDGES  LIABILITY  FOR  PAYMENT  OF ALL
AMOUNTS  OWING  UNDER THIS NOTE AND THE OTHER  LOAN  DOCUMENTS  AND AGREES  THAT
LENDER  DOES NOT HAVE TO  FORECLOSE  ITS DEED OF TRUST OR ANY  OTHER  COLLATERAL
BEFORE DEMANDING FULL PAYMENT FROM BORROWER.

         Borrower                        Atlantis Laboratories, Inc.

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

         Borrower                        /s/ Mark Potter
                                         -------------------------------
                                         Mark Potter, individuallyExhibit 10.7

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

================================================================================

                 CONSTRUCTION DEED OF TRUST, SECURITY AGREEMENT,
               ASSIGNMENT OF LEASES AND RENTS, AND FIXTURE FILING

This Deed of Trust is a Security Agreement and Financing Statement under Article
9  of  the  Uniform   Commercial  Code,  with   Grantor/Trustor  as  Debtor  and
Grantee/Beneficiary as Secured Party

THIS CONSTRUCTION DEED OF TRUST,  SECURITY  AGREEMENT,  ASSIGNMENT OF LEASES AND
RENTS,  AND FIXTURE FILING ("Deed of Trust") is made as of April 4, 2006, by and
among:

Grantor/Borrower:             Mark Potter
                              408 Hall Street
                              Conroe, Texas 77301
                              Donald O. Walsh

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

Grantee/Beneficiary:          Klinger Advanced Aesthetics, Inc.
                              501 Merritt 7, 5th Floor
                              Norwalk, CT  06851

NOTICE TO RECORDER:  THIS DOCUMENT CONTAINS A FIXTURE FILING AND SHOULD BE FILED
AND INDEXED IN THE REAL ESTATE RECORDS NOT ONLY AS A DEED OF TRUST,  BUT ALSO AS
A FIXTURE FILING.

Grantor/Trustor is also referred to herein as "Borrower" and Grantee/Beneficiary
as "Lender"

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

<PAGE>

                 CONSTRUCTION DEED OF TRUST, SECURITY AGREEMENT,
               ASSIGNMENT OF LEASES AND RENTS, AND FIXTURE FILING

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

                                   DEFINITIONS

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

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

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

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

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

                  "Loan  Documents":  (a)  the  Promissory  Note  of  even  date
         herewith,  executed by Grantor, payable to the order of Beneficiary, in
         the stated  principal  amount Six  Hundred  Fifty  Thousand  and No/100
         Dollars ($650,000.00),  (b) this

<PAGE>

         Deed of Trust,  (c) all other  documents  now or hereafter  executed by
         Grantor, or any other person or entity, to evidence, secure or guaranty
         the  payment  of  all  or  any  portion  of  the  Indebtedness  or  the
         performance  of all or any  portion  of the  Obligations  or  otherwise
         executed in connection with the Note or this Deed of Trust, and (d) all
         modifications,  restatements,  extensions, renewals and replacements of
         the foregoing.

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

                                       2
<PAGE>

         "Bankruptcy  Claims")  to the  payment  of  damages  arising  from  any
         rejection by a Tenant of any Lease under the  Bankruptcy  Code, (h) all
         of the rents,  revenues,  issues,  income,  proceeds,  profits, and all
         other  payments  of any kind  under  the  Leases  for  using,  leasing,
         licensing,   possessing,   operating  from,  residing  in,  selling  or
         otherwise  enjoying  the  Mortgaged  Property  whether paid or accruing
         before or after the filing by or against  Grantor of any  petition  for
         relief  under  the  Bankruptcy  Code  (the  "Rents"),   (i)  all  other
         agreements,  such as construction  contracts,  architects'  agreements,
         engineers'  contracts,   utility  contracts,   maintenance  agreements,
         property   management   agreements,   franchise   agreements,   service
         contracts, permits, licenses,  certificates and entitlements in any way
         relating to the development,  construction,  use, occupancy, operation,
         maintenance,  enjoyment,  acquisition  or  ownership  of the  Mortgaged
         Property  (the  "Property  Agreements"),  (j) all  rights,  privileges,
         tenements,  hereditaments,  rights-of-way,  easements,  appendages  and
         appurtenances  appertaining to the foregoing,  and all right, title and
         interest,  if any,  of Grantor  in and to any  streets,  ways,  alleys,
         strips or gores of land adjoining the Land or any part thereof, (k) all
         accessions, replacements and substitutions for any of the foregoing and
         all proceeds  thereof,  (1) all insurance  policies,  unearned premiums
         therefor  and  proceeds  from such  policies  covering any of the above
         property now or hereafter acquired by Grantor, (m) all mineral,  water,
         oil and gas rights now or hereafter acquired and relating to all or any
         part of the  Mortgaged  Property,  (n)  all  trade  names,  trademarks,
         service marks, logos,  copyrights,  goodwill, books and records and all
         other general  intangibles  relating to or used in connection  with the
         operation of the Mortgaged  Property;  and (o) all of Grantor's  right,
         title and interest in and to any awards, remunerations, reimbursements,
         settlements or compensation  heretofore made or hereafter to be made by
         any  governmental  authority  pertaining  to  the  Land,  Improvements,
         Fixtures  or  Personalty.  As used in this  Deed  of  Trust,  the  term
         "Mortgaged  Property"  shall mean all or, where the context  permits or
         requires, any portion of the above or any interest therein.

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

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

                  "State":  The State of Texas.

                                       3
<PAGE>

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

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

                                      GRANT

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

                                   ARTICLE 1.
                     GRANT IN TRUST AND SECURED OBLIGATIONS

         1.1 GRANT IN TRUST.  For good and valuable  consideration,  the receipt
and sufficiency of which is hereby acknowledged, and for the purpose of securing
the full and timely payment and performance of the Secured  Obligations  defined
and  described  in Section 1.2 for the benefit of Lender,  Borrower has GRANTED,
BARGAINED,  SOLD,  CONVEYED,  ASSIGNED,  TRANSFERRED,  AND SET OVER and by these
presents does GRANT, BARGAIN, SELL, CONVEY, ASSIGN,  TRANSFER, AND SET OVER unto
Trustee,  in trust and for the uses and purposes set forth herein forever,  with
power of sale and right of entry and possession,  and grants a security interest
in, all estate,  right,  title and interest  that  Borrower now has or may later
acquire in and to the following  property (all or any part of such property,  or
any  interest  in all or any  part  of it,  as  the  context  may  require,  the
"Collateral"),  which  Collateral  is not  used  principally  or  primarily  for
agricultural  or  farming  purposes,  TO HAVE  AND TO HOLD the  Collateral  unto
Trustee  forever,  and Borrower  does hereby bind  itself,  its  successors  and
assigns,  to WARRANT AND FOREVER DEFEND the title to the Collateral unto Trustee
against the claim or claims of all persons  claiming or to claim the same or any
part thereof.

                  1.1.1  LAND,  APPURTENANCES,   EASEMENTS.  That  certain  real
property and all interests  therein located in Montgomery  County,  Texas,  more
particularly  DESCRIBED in EXHIBIT A attached hereto and incorporated  herein by
this reference,  together with all existing and future easements, access rights,
appurtenances,  privileges, licenses,  hereditaments,  franchises and tenements,
including  all water stock and water rights owned by Borrower and all  minerals,
oil, gas, and other commercially

                                       4
<PAGE>

valuable  substances  that  may be in,  under  or  produced  from any part of it
(collectively, the "Land");

                  1.1.2   IMPROVEMENTS.    All   buildings,    structures,   and
improvements   now  located  or  later  to  be  constructed  on  the  Land  (the
"Improvements");

                  1.1.3  RELATED  REAL  PROPERTY  AND  IMPROVEMENTS.   All  real
property  and  improvements  on  it,  and  all  appurtenances,  permits,  plans,
licenses, subdivision rights, contracts, contract rights, and other property and
interests of any kind or character, including all water and sewer taps belonging
to or in any way related to or appurtenant to the Land or Improvements,  whether
described in EXHIBIT A or not, that may be reasonably  necessary or desirable to
promote the present and any  reasonable  future  beneficial use and enjoyment of
the Land and Improvements;

                  1.1.4  LEASES  AND  LICENSES.  Subject to the rights of Lender
under   Article  3  hereof,   all   existing  and  future   leases,   subleases,
sub-tenancies,  licenses,  occupancy agreements, and concessions relating to the
use and enjoyment of all or any part of the Project (defined below),  written or
oral, now in existence or hereafter arising, and extensions or renewals thereof,
together with the right,  power,  and authority of Borrower to alter , modify or
change the terms thereof or surrender, cancel or terminate the same, and any and
all deposits,  guaranties and other agreements relating to or made in connection
with any of the foregoing (the "Leases");

                  1.1.5 GOODS,  MATERIALS,  FIXTURES, ETC. All goods, materials,
supplies, chattels, furniture, appliances,  furnishings, fixtures, equipment and
machinery now or later to be attached to, placed in or on, or used in connection
with  the  use,  enjoyment,  occupancy  or  operation  of all or any part of the
Project,  whether  stored  on the  Land or  elsewhere,  all of  which  shall  be
considered to the fullest  extent of the law to be real property for purposes of
this Deed of Trust;

                  1.1.6  CONSTRUCTION  MATERIALS  AND  EQUIPMENT.  All  building
materials,  equipment,  work in process or other personal  property of any kind,
whether  stored  on the Land or  elsewhere,  that  have  been or  later  will be
acquired for the purpose of being delivered to,  incorporated into, or installed
in or about the Land or Improvements;

                  1.1.7 BORROWER FUNDS. All of Borrower's interest in and to the
proceeds of the Secured Obligations  (defined below),  whether disbursed or not;
all  present  and future  monetary  deposits  given by Borrower to any public or
private  utility  with  respect to  utility  services  furnished  to the Land or
Improvements;  and all  accounts  maintained  by  Borrower  with  Lender  or any
subsidiary or affiliate of Lender, including,  without limitation,  any accounts
established in connection with the Secured Obligations;

                  1.1.8  RENT,  ISSUES,  AND  PROFITS.  Subject to the rights of
Lender under Article 3 hereof, all income,  rents, security or similar deposits,
revenues, issues, royalties, profits, leases, earnings, products and proceeds of
the Land or  Improvements,  together  with the  right,  power and  authority  to
collect the same, including, without

                                       5
<PAGE>

limitation,  all rights to the payment of money, accounts,  investment property,
accounts  receivable,   reserves,  deferred  payments,  refunds,  cost  savings,
insurance or  condemnation  proceeds,  payments  and  deposits,  (including  all
earnest  money sales  deposits  and all  utility,  tenant,  escrow and  security
deposits), advanced payments of insurance premiums, contract rights, development
and use rights, governmental permits, fees, deposits and licenses, applications,
architectural  and  engineering  plans,  specifications  and drawings,  as-built
drawings, chattel paper, instruments,  documents,  notes, drafts, and letters of
credit and related  rights  (other  than  letters of credit in favor of Lender),
that arise from or relate to  construction on the Land or to any business now or
later to be  conducted on it or to the Land and  Improvements,  whether now due,
past  due,  or to become  due,  generally  including,  without  limitation,  any
proceeds  from  the sale of any lots  comprising  the Land and any  Improvements
constructed  thereon, and any deposits on account thereof, and also all proceeds
of the voluntary or involuntary conversion of any of the Land, Improvements,  or
the other property  described  above into cash or liquidated  claims,  including
proceeds of all present and future  insurance  policies and all  condemnation or
eminent domain proceedings,  and all causes of action and their proceeds for any
damage  or injury to the Land,  Improvements,  or the other  property  described
above  or any part  thereof,  or  breach  of  warranty  in  connection  with the
construction of the  Improvements,  including  causes of action arising in tort,
contract,  fraud, or concealment of a material fact  (collectively,  the "Rents,
Issues and Profits");

                  1.1.9  CONTRACTS  AND PLANS.  All  construction  contracts and
subcontracts, consulting agreements, financing commitments and agreements, joint
development  agreements,  service  and  maintenance  agreements,  marketing  and
listing agreements,  lot reservation  agreements,  purchase and sale agreements,
and other existing and future contracts  relating to the Project,  together with
all deposits, escrows, payments, or other proceeds thereunder (collectively, the
"Contracts");  and all  plans and  specifications  for the  construction  of the
Improvements (the "Plans");

                  1.1.10 MISCELLANEOUS  PERSONAL PROPERTY.  Any and all personal
property of any kind whatsoever, whether tangible or intangible, that is used or
will be used in construction of, or is or will be placed upon or is derived from
or used in any connection  with the use,  occupancy or enjoyment of, the Land or
Improvements;

                  1.1.11 BOOKS AND RECORDS.  All books and records pertaining to
any and  all of the  property  described  above,  including  records  stored  on
computer  readable media, and a limited  sublicense to use the computer hardware
or software necessary to access such records ("Books and Records");

                  1.1.12 RIGHTS UNDER LAWS. All of Borrower's  right,  title and
interest in and to any and all units,  declarant  rights,  and any other  rights
relating to the Land or the  Improvements,  whether now existing or subsequently
arising,  under any and all  covenants,  conditions,  restrictions,  development
agreements,  laws or other  agreements now existing or later enacted relating to
the Land and Improvements;

                                       6
<PAGE>

                  1.1.13 ADDITIONAL  PROPERTY.  Any additional personal property
otherwise set forth herein or listed on any UCC-1  financing  statement filed to
perfect Lender's security interest hereunder; and

                  1.1.14 PROCEEDS.  All proceeds of, supporting obligations for,
additions and accretions to,  substitutions and replacements for, and changes in
any of the property described above.

The Land, Improvements,  related real property, and all personal property now or
hereafter  installed on or used in connection with the Land and/or  Improvements
are  collectively  referred to herein as the "Project." The Project  constitutes
the bulk of, but not the entirety of, the Collateral.

         1.2 SECURED OBLIGATIONS. Borrower makes the grant, conveyance, transfer
and  assignment  set forth in Section 1.1 and grants the  security  interest set
forth in Section 2.1 for the purpose of securing the following  obligations (the
"Secured Obligations") in any order of priority that Lender may choose:

                  1.2.1 PROMISSORY NOTE.  Payment of all obligations at any time
owing under that certain  promissory note payable by Borrower,  as maker, to the
order  of  Lender  or  order,   executed  concurrently  herewith  (the  "Note"),
evidencing a loan from Lender to Borrower in the maximum  outstanding  principal
amount of Six Hundred Fifty Thousand Dollars  ($650,000) (the "Loan"),  together
with interest  thereon at a rate of six and one-half  percent (6-1/2%) per annum
and any modifications,  extensions or renewals thereof,  whether or not any such
modification,  extension  or  renewal  is  evidenced  by  a  new  or  additional
promissory  note or  notes.  The  Note  will  mature  on April  1,  2016  unless
accelerated or extended pursuant to the terms of the Note;

                  1.2.2 LOAN DOCUMENTS.  Payment and/or  performance of each and
every other  obligation  of  Borrower  under the Note,  this Deed of Trust,  any
construction or land loan agreement executed in conjunction therewith (the "Loan
Agreement"),  all other documents  evidencing,  securing, or otherwise governing
the Loan  (specifically  excluding,  however,  for purposes of establishing  the
Secured  Obligations,  any  obligations  of Borrower  arising  solely  under any
guaranty of the Secured Obligations or any indemnity agreement that by its terms
is  not  secured  hereby),  and  any  and  all  amendments,  modifications,  and
supplements  thereto  (collectively,  the "Loan  Documents"),  the provisions of
which are incorporated herein by this reference.

                  1.2.3 RELATED LOAN  DOCUMENTS.  Payment and/or  performance of
each  covenant and  obligation  on the part of Borrower or its  affiliates to be
performed  pursuant to any and all loan documents (the "Related Loan Documents")
that have been or may be executed by Borrower or its  affiliates  evidencing  or
securing  one or more  present or future  loans by Lender or its  affiliates  to
Borrower or its  affiliates  (collectively,  the "Related  Loans"),  whether now
existing  or made  in the  future,  together  with  any  and all  modifications,
extensions  and renewals  thereof;  provided,  however,  that nothing  contained
herein  shall  be  construed  as  imposing  an  obligation  upon  Lender,  or as
evidencing  Lender's  intention,  to make any  Related  Loan to  Borrower or its
affiliates;

                                       7
<PAGE>

                  1.2.4  FUTURE  OBLIGATIONS.  Payment  to Lender of all  future
advances,  indebtedness  and further  sums and/or  performance  of such  further
obligations  as  Borrower  or the then  record  owner of the Project or the then
owner of the  balance of the  Collateral  may  undertake  to pay and/or  perform
(whether as  principal,  surety,  or guarantor)  for the benefit of Lender,  its
successors  or  assigns,  (it being  contemplated  by  Borrower  and Lender that
Borrower may hereafter  become  indebted to Lender in such further sum or sums),
when such borrowing  and/or  obligations  are evidenced by a written  instrument
reciting that it or they are secured by this Deed of Trust;

                  1.2.5 MODIFICATIONS AND AMENDMENTS. Payment and performance of
all modifications,  amendments,  extensions, and renewals, however evidenced, of
any of the Secured Obligations.

All  persons  who may  have or  acquire  an  interest  in all or any part of the
Collateral will be considered to have notice of, and will be bound by, the terms
of the  Secured  Obligations  and each other  agreement  or  instrument  made or
entered into in connection with each of the Secured Obligations.

                                   ARTICLE 2.
                               SECURITY AGREEMENT

         2.1 GRANT OF SECURITY  INTEREST.  This Deed of Trust  creates a lien on
the Collateral,  and constitutes an absolute assignment of the Rents, Issues and
Profits and of the Leases, all in favor of Lender, and includes all property now
or  hereafter  affixed  or  attached  to  or  incorporated  upon  the  Land  and
Improvements,  which,  to the fullest  extent  permitted by law, shall be deemed
fixtures  and a part of the real  property.  To the extent  that any part of the
Collateral or Rents,  Issues and Profits and Leases may be, or are determined to
be, personal property,  Borrower, as debtor, hereby grants to Lender, as secured
party, a security interest in such part of the Collateral and Rents,  Issues and
Profits and Leases as is determined to be personal  property,  to secure payment
and performance of the Secured Obligations.  As to such personal property,  this
Deed of Trust constitutes a security agreement under the Uniform Commercial Code
of Texas and terms used to describe the  Collateral in Section 1 of this Deed of
Trust  shall  have the  definitions  ascribed  to such terms  under the  Uniform
Commercial Code of Texas.

         2.2 PERFECTION OF SECURITY INTEREST. Borrower authorizes Lender to file
one or more  financing  statements  and such other  documents as Lender may from
time to time require to perfect and continue the perfection of Lender's security
interest  in any part of the  Collateral  or the Rents,  Issues and  Profits and
Leases.  Borrower  shall pay all fees and costs that  Lender may incur in filing
such documents in public offices and in obtaining such record searches as Lender
may  reasonably  require.  Borrower  shall  cooperate  with Lender in  obtaining
control of any portion of the  Collateral  that  consists  of Deposit  Accounts,
Investment Property,  Letter-of-credit  rights, and Electronic Chattel Paper, as
such terms are defined in the Uniform Commercial Code of Texas. If any financing
statement  or other  document is filed in the  records  normally  pertaining  to
personal  property,  that filing shall not be construed as in any way derogating
from or

                                       8
<PAGE>

impairing the  declaration  and the stated  intention of the parties hereto that
the Collateral and all components  thereof are, to the maximum extent  possible,
real property or otherwise impair the rights or obligations of the parties under
this Deed of Trust.

         2.3  FIXTURE  FILING/CONSTRUCTION  DEED OF  TRUST.  This  Deed of Trust
constitutes a financing  statement  filed as a fixture  filing under the Uniform
Commercial  Code in effect in the Project State,  as amended or recodified  from
time to time,  covering  any  part of the  Collateral  that now is or later  may
become  fixtures  attached  to the Land or  Improvements.  As this Deed of Trust
secures  advances to be used for the  construction of improvements  thereon,  or
both,  this  Deed  of  Trust  also  constitutes  a  "construction  mortgage"  or
"construction  deed of trust"  under the  Uniform  Commercial  Code in effect in
Texas.

                                   ARTICLE 3.
                               ASSIGNMENT OF RENTS

         3.1 LEASING.  Borrower  shall not lease the Project or any part thereof
unless permitted under the Loan Agreement or by other express written consent of
Lender,   and  then  only   strictly   in   accordance   with  such   agreement.
Notwithstanding  the  foregoing,  however,  any and all  Leases at the  Project,
whether or not entered into with the consent of Lender,  shall be subject to the
provisions of this Article 3.

         3.2 ASSIGNMENT. Borrower hereby irrevocably,  presently, absolutely and
unconditionally  assigns  and  transfers  to Lender:  (a) the Rents,  Issues and
Profits;  (b) all Leases,  and (c) any and all guarantees of any  obligations of
any lessee  under  each of the  Leases (a  "Lessee").  The  assignments  in this
Section are absolute assignments and irrevocable from Borrower to Lender and not
merely the passing of security interests or assignments for security only.

         3.3 GRANT OF LICENSE.  Lender  hereby  confers upon  Borrower a license
("License")  to collect and retain the Rents,  Issues and Profits as they become
due and payable,  and to administer the Leases,  so long as no Event of Default,
as defined in Section 6.1, shall exist and be continuing. If an Event of Default
has occurred and is continuing,  such License shall terminate  without notice to
or demand upon  Borrower,  without  regard to the adequacy of Lender's  security
under this Deed of Trust.

         3.4 COLLECTION AND APPLICATION OF RENTS, ISSUES AND PROFITS. Subject to
the License granted to Borrower under Section 3.3, Lender has the right,  power,
and  authority to collect any and all Rents,  Issues and Profits and  administer
the Leases.  Borrower hereby appoints Lender its attorney-in-fact,  coupled with
an interest, to, at such times as Lender may choose in its sole discretion:  (a)
demand,  receive and enforce  payment of any and all Rents,  Issues and Profits;
(b) give receipts,  releases and satisfactions for any and all Rents, Issues and
Profits;  or (c) sue either in the name of Borrower and/or in the name of Lender
for any and all Rents,  Issues and Profits.  Lender's right to the Rents, Issues
and Profits  does not depend on whether or not Lender  takes  possession  of the
Project as permitted hereunder.

                                       9
<PAGE>

         3.5  ENFORCEMENT  OF LEASES.  Borrower will (i) comply with and observe
Borrower's  obligations  as  landlord  under all  Leases and will do all that is
necessary  to  preserve  all  Leases  in  force  and  free  from  any  right  of
counterclaim, defense or set off, (ii) enforce the performance of each and every
obligation, term, covenant, condition and agreement in the Leases by the tenants
to be performed,  (iii) notify Lender of the occurrence of any default under any
Leases,  and (iv) appear in and defend any action or proceeding  arising  under,
occurring out of, or in any manner connected with the Leases or the obligations,
duties, or liabilities of Borrower or the tenants  thereunder.  Without Lender's
written  consent,  Borrower will not collect or accept payment of any Rents from
the Collateral more than one (1) month prior to the due dates thereof;  will not
surrender  or  terminate  any  Lease;  and will not  request  or  consent to the
subordination of any Lease to any lien subordinate to this Deed of Trust.

         3.6  MODIFICATION  OF  LEASES.  Without  the prior  written  consent of
Lender,  Borrower  shall not: (i) waive,  excuse,  condone,  discount,  set off,
compromise,  or in any manner  release or discharge  the tenant under any Leases
from any obligations, covenants, conditions and agreements by tenant to be kept,
observed and performed,  including the obligation to pay the Rents thereunder in
the  manner  and at the  place  and  time  specified  therein;  or (ii)  cancel,
terminate, consent to or permit any surrender of any Leases.

         3.7 LENDER NOT RESPONSIBLE.  Under no  circumstances  shall Lender have
any duty to produce  Rents,  Issues and Profits from the Project.  Regardless of
whether or not Lender,  in person or by agent,  takes actual  possession  of the
Project,  Lender  is not and shall not be  deemed  to be:  (a) a  "mortgagee  in
possession"  for  any  purpose;  (b)  responsible  for  performing  any  of  the
obligations  of the  lessor  under  any  Lease;  (c)  responsible  for any waste
committed by Lessees or any other parties,  any dangerous or defective condition
of the Project, or any negligence in the management,  upkeep,  repair or control
of the  Project;  or (d)  liable  in any  manner  for the  Project  or the  use,
occupancy,  enjoyment  or  operation  of all or any part of it,  except for such
matters as may arise from the willful misconduct and bad faith of Lender.

                                   ARTICLE 4.
                         ENVIRONMENTAL AND BUILDING LAWS

         4.1 DEFINITIONS.  The following terms shall have the meanings specified
below:

                  4.1.1  "Building  Laws" means the Fair  Housing Act of 1968 as
amended,  the Americans With Disabilities Act of 1990 as amended, all government
and  private  covenants,  conditions,  and  restrictions  relating  to the Land,
building code  requirements  and laws affecting the construction of improvements
on  the  Land,  and  all  other  federal,  state  and  local  laws,  ordinances,
regulations and rules relating to the construction,  operation,  and maintenance
of the  improvements on the Land and the marketing and use of such  improvements
in a non-discriminatory manner.

                                       10
<PAGE>

                  4.1.2   "Environmental   Laws"  means  the  Federal   Resource
Conservation and Recovery Act of 1976; the Federal  Comprehensive  Environmental
Response,  Compensation,  and  Liability  Act of  1980;  the  Federal  Hazardous
Materials  Transportation  Control Act;  the Federal  Clean Air Act; the Federal
Water  Pollution  Control  Act,  Federal  Clean  Water Act of 1977;  the Federal
Insecticide,  Fungicide, and Rodenticide Act, Federal Pesticide Act of 1978; the
Federal  Endangered  Species Act; the Federal Toxic Substances  Control Act; the
Federal Safe Drinking  Water Act; and all other  federal,  state and local laws,
statutes,  codes,  ordinances,   regulations,  judgments,  orders,  injunctions,
decrees,  covenants,  restrictions and standards presently in effect or that may
be promulgated in the future relating to the use,  release,  handling,  storage,
transportation, clean-up, or other disposal of Hazardous Substances; or relating
to the water  quality,  air  quality,  soils  quality,  and other  environmental
quality of real property and  improvements  constructed  upon real property;  or
related to the protection of endangered species, as such laws and ordinances may
be amended from time to time,  including,  without  limitation,  the Texas Water
Code and the Texas Health Safety Code.

                  4.1.3 "Environmental  Reports" means the soils,  geologic, and
engineering  reports prepared to assess any environmental  risks associated with
the Project or otherwise required by Lender.

                  4.1.4  "Hazardous  Substances"  means any  waste,  pollutants,
contaminants,  petroleum or petroleum product, asbestos, tremolite, anthophylite
or actinolite,  polychlorinated  biphenyls,  or other  chemical,  substance,  or
material  that:  (i)  after  release  into the  environment  and upon  exposure,
ingestion, inhalation, or assimilation,  either directly from the environment or
indirectly  by  ingestion  through  food  chains,  will  or  may  reasonably  be
anticipated  to cause death,  disease,  behavior  abnormalities,  cancer  and/or
genetic  abnormalities,  or (ii) is now or at any  time  in the  future  becomes
regulated  under, or is defined,  classified or designated as hazardous,  toxic,
radioactive  or  dangerous,   or  other  similar  term  or  category  under  any
Environmental Laws.

                  4.1.5 "Nearby Property" means any real property adjacent to or
near the Project,  the use of which could reasonably cause  contamination of the
Project,  or which could become  contaminated  with  Hazardous  Substances  as a
result of  construction,  operations  or other  activities  involving  Hazardous
Substances on, under, or over the Land.

         4.2  REPRESENTATIONS  AND  WARRANTIES.  Borrower  makes  the  following
representations and warranties to Lender:

                  4.2.1  ENVIRONMENTAL  LAWS.  Except for any  contamination  or
environmental  condition  that may be  disclosed  in any  environmental  reports
delivered  by  Borrower  to Lender  prior to the date  hereof,  Borrower  has no
knowledge  of: (i) the  presence of any  Hazardous  Substances  on the  Project,
including  all  personal  property  located  on  the  Land,  the  soil  and  the
groundwater on or under the Land, including any streams crossing or abutting the
Land, and the aquifer underlying the Land, (ii) any spills, releases, discharges
or disposal of Hazardous Substances that have occurred or are

                                       11
<PAGE>

presently occurring on or into the Project or the Nearby Property, and (iii) any
failure of the Project to comply fully with all applicable  Environmental  Laws.
Borrower's  intended  uses of the  Project,  including  but not  limited  to the
improvements and materials to be constructed and installed on and in the Project
and the work method for accomplishing such  construction,  comply fully with all
Environmental Laws.

                  4.2.2 BUILDING LAWS.  Borrower has no knowledge of any failure
of the Project or the plans and  specifications  for improvements on the Project
to comply fully with all applicable  Building Laws.  Borrower's intended uses of
the Project,  including but not limited to the  improvements and materials to be
constructed  and  installed  on  and  in  the  Project,   the  work  method  for
accomplishing  such  construction,  and the plan for utilizing the  Improvements
constructed on the Land comply fully with all Building Laws.

         4.3 NO  WAIVERS OF OTHER  INDEMNIFICATIONS  RELATING  TO  ENVIRONMENTAL
CONDITION.  Borrower has not and will not release or waive the  liability of any
past or  current  owner,  lessee,  or  operator  of the  Project,  any party who
performs  work on the  Project,  or any  party  who may be  responsible  for the
presence  of or removal of  Hazardous  Substances  on or from the Project or the
Nearby Property, and (ii) Borrower has made no prior promises of indemnification
to any party relating to the existence or non-existence of Hazardous  Substances
on the Project.

         4.4 OBLIGATION TO COMPLY WITH ENVIRONMENTAL AND BUILDING LAWS. Borrower
shall  construct,  keep, and maintain the Collateral in compliance  with any and
all laws  relating  to  public  safety  and the  condition  of the  environment,
including  but not  limited to the  Environmental  Laws and the  Building  Laws.
Borrower covenants that Borrower and Borrower's agents, contractors,  authorized
representatives,  and  employees  shall  not  engage  in any  of  the  following
prohibited  activities,  and Borrower shall use diligent  efforts to assure that
Borrower's  invitees and  tenants,  and such  tenant's  employees,  agents,  and
invitees  shall not:  (i) cause or permit any release or  discharge of Hazardous
Material on the Project  other than in full  compliance  with all  Environmental
Laws; (ii) cause or permit any manufacturing, storage, holding, handling, usage,
placement, transporting, spilling, leaking, discharging, or dumping of Hazardous
Material in or on any portion of the Project other than in full  compliance with
all Environmental  Laws; (iii) suffer or permit any other act upon or concerning
the Project that would result in a violation of any Environmental Law or require
any  alterations  or  improvements  to be made on the  Project  under any of the
Environmental  Laws;  or (iv) suffer or permit any other act upon or  concerning
the Project  that would  result in a violation  of any Access Law or require any
alterations or  improvements to be made on the Project under any of the Building
Laws.

         4.5 OBLIGATION TO CURE NON-COMPLIANCE.

                  4.5.1  If  Borrower  at any  time  becomes  aware  of (i)  any
Hazardous  Substances  on, or other  environmental  problem  or  liability  with
respect to, the Project or any Nearby Property,  (ii) any failure of the Project
or the  Improvements  to comply with any of the  Environmental  Laws,  (iii) any
failure of the Project or the

                                       12
<PAGE>

Improvements  or the  marketing  efforts and other  operations  undertaken  with
respect  thereto  to comply  with any of the  Building  Laws,  or (iv) any lien,
action or notice resulting from violation of any Environmental  Laws or Building
Laws,  Borrower shall immediately notify Lender,  and shall thereafter  exercise
due  diligence to ascertain  the scope and nature of such  condition and provide
all notices that state or federal law may require.

                  4.5.2 If, upon giving such notice or for any other reason, one
or more governmental  agencies having appropriate  jurisdiction requires removal
or  treatment of  Hazardous  Substances  from or on the Project or the making of
alterations  to the  Project to  conform  to  Building  Laws,  or such  removal,
treatment,  or alteration is required by  Environmental  Laws or Building  Laws,
Borrower  will: (i) take all actions that are necessary or desirable to clean up
any Hazardous  Substances affecting the Project,  including removal,  treatment,
containment  or any other remedial  action  required to restore the Project to a
safe condition in compliance  with applicable  laws and  regulations,  including
Environmental  Laws,  (ii) take all actions  that are  necessary or desirable to
modify the Project and all Improvements and marketing materials so as to achieve
compliance with applicable laws and regulations, including Building Laws, and/or
(iii) attempt,  through  appropriate  legal or  administrative  proceedings,  to
appeal,  contest,  or  obtain  a stay of  enforcement  proceedings  if  Borrower
believes  in good  faith  that  Borrower  is not  required  by law to cure  such
Hazardous  Substances  condition or to make  alterations to comply with Building
Laws.

                  4.5.3  Except  for  removal  or  treatment  of  any  Hazardous
Substances  deposited  on the  Project  by  Lender,  Borrower  agrees  that  the
amelioration,  treatment,  containment,  or removal of all Hazardous  Substances
that may be  discovered  on the Project  shall be at  Borrower's  sole  expense,
reserving unto Borrower any claims for  contribution  or indemnity that Borrower
may have against other parties who may be held liable therefor.

         4.6 INDEMNIFICATION OF LENDER. Borrower shall indemnify and hold Lender
harmless from and against any and all claims, demands,  damages,  losses, liens,
liabilities,  penalties,  fines,  lawsuits and other  proceedings  and costs and
expenses  (including  attorneys' fees and  disbursements)  that result in actual
cost and expense to Lender  prior to any  transfer  of the  Project  pursuant to
foreclosure  proceedings  or  deed  in  lieu  thereof,  and  arise  directly  or
indirectly  from or out of, or in any way connected  with: (i) the inaccuracy of
the representations  contained herein; (ii) any activities on the Project during
Borrower's  ownership,  possession  or control of the Project  that  directly or
indirectly  result in the Project or any Nearby Property  becoming  contaminated
with  Hazardous  Substances;  (iii) the  discovery  and/or clean up of Hazardous
Substances  that were deposited on or were existing on the Project prior to such
a  transfer  or that  were  deposited  on any  Nearby  Property  as a result  of
Borrower's  actions or omissions;  or (iv) any alleged or actual  failure of any
improvements now or hereafter  constructed on the Project to continuously comply
with all  Building  Laws now or  hereafter  enacted  for any reason  whatsoever.
Borrower  acknowledges  that, as between  Borrower and Lender,  Borrower will be
solely  responsible  for all  costs  and  expenses  relating  to the clean up of

                                       13
<PAGE>

Hazardous  Substances  from  the  Project  or  the  clean  up of  any  Hazardous
Substances  from any  Nearby  Property  as a result  of  Borrower's  actions  or
omissions  and  the  modification  and  correction  of any  of the  improvements
constructed  on the Project so as to comply  fully with all Building  Laws.  The
provisions  of this section  shall  survive  repayment  and  performance  of the
Secured Obligations, the reconveyance of this Deed of Trust, any foreclosure (or
deed in lieu of  foreclosure),  and the exercise by Lender of any and all rights
and remedies set forth herein or in any of the other Loan Documents.

                                   ARTICLE 5.
                        RIGHTS AND DUTIES OF THE PARTIES

         5.1 PERFORMANCE OF SECURED OBLIGATIONS. Borrower shall promptly pay and
perform each Secured Obligation in accordance with its terms.

         5.2  REPRESENTATIONS  AND WARRANTIES.  Borrower represents and warrants
that, except as previously disclosed and accepted by Lender in writing:

                  5.2.1 TITLE TO LAND AND IMPROVEMENTS.  Borrower holds good and
indefeasible fee simple title to all of the Land and Improvements,  subject only
to such  exceptions and  encumbrances as have been approved in writing by Lender
(the  "Permitted  Exceptions"),  and Borrower has or will have good title to all
portions of the Collateral other than the Land and Improvements.

                  5.2.2 TITLE TO PERSONAL PROPERTY. Borrower owns any portion of
the  Collateral  that is  personal  property  free  and  clear  of any  security
agreements,  reservations of title, or conditional sales contracts, and there is
no financing  statement  affecting such personal  property on file in any public
office other than in Lender's favor.

                  5.2.3 RIGHT TO  ENCUMBER/PRIORITY.  Borrower  has the full and
unlimited power,  right, and authority to encumber the Collateral and assign the
Rents,  Issues and Profits and Leases.  Upon recording of this Deed of Trust and
filing  of a UCC  Financing  Statement  with  respect  to  any  portion  of  the
Collateral  that is  determined  to be  personal  property,  this Deed of Trust,
Security Agreement, and Fixture Filing will create a first and prior lien on and
security  interest in the Collateral that is subject and subordinate to no other
liens except for the Permitted Exceptions.

                  5.2.4  COMMERCIAL  PURPOSES.  The Loan and the  other  Secured
Obligations  were  obtained  by  Borrower  and  will  continue  to be  used  for
commercial or business  purposes,  other than  agricultural,  timber, or grazing
purposes, and not for personal, family or household purposes.

         5.3 TAXES AND ASSESSMENTS.  Borrower shall pay or cause to be paid when
due, all general real and personal property taxes, special and supplemental real
and personal  property  taxes and  assessments,  license  fees,  license  taxes,
levies, charges, penalties, or other taxes or similar impositions imposed by any
public or  quasi-public  authority  or utility  company that are or may become a
lien upon the Collateral or any portion thereof or interest therein, or that may
cause any decrease in the value of the

                                       14
<PAGE>

Collateral or any part of it. Borrower shall also pay when due all real property
taxes,  assessments,  levies and charges  imposed by any public  authority  upon
Lender by reason of its interest in the Collateral  created  hereby.  All of the
foregoing taxes,  assessments and other charges payable by Borrower with respect
to  the  Collateral  are  collectively  referred  to as  the  "Impositions."  If
requested  by Lender,  Borrower  shall  furnish  Lender with  receipts  from the
appropriate  taxing  authority  or other proof  satisfactory  to Lender that all
Impositions  have  been  paid on or  before  the date  upon  which  they  become
delinquent.

         5.4 LIENS,  CHARGES AND  ENCUMBRANCES.  Borrower  shall not encumber or
permit the encumbrance of the Collateral  without Lender's prior written consent
and Borrower  shall  immediately  discharge any lien on the  Collateral to which
Lender has not consented in writing. Borrower shall pay or cause to be paid when
due all obligations secured by or reducible to liens and encumbrances that shall
now or  hereafter  encumber or appear to  encumber  the  Collateral  or any part
thereof,  all claims  for work or labor  performed,  or  materials  or  supplies
furnished,  in  connection  with any work upon the  Project,  whether  the lien,
charge  or  encumbrance  is or would be senior  or  subordinate  to this Deed of
Trust; provided, however, that Borrower shall not be in default hereunder due to
any such lien,  charge,  or encumbrance  that is a Permitted  Exception.  Lender
hereby  expressly  reserves the right to advance any and all funds  necessary to
cure any and all such obligations, and/or claims.

         5.5 REQUIRED  INSURANCE.  Borrower  shall keep the following  insurance
coverages in effect with respect to the Collateral:  (a) Insurance  against loss
by fire and the hazards now or  hereafter  embraced by the  standard  "All Risk"
form of insurance,  in an amount equal at all times to the full insurable  value
of the  Improvements.  All such insurance  coverage shall contain a "replacement
cost endorsement"  without  reduction for  depreciation,  and shall also contain
loss of rents and/or business  interruption  insurance  coverage,  a fluctuating
value endorsement with a waiver of the co-insurance  clause (or an agreed amount
endorsement with an inflation guard  endorsement),  and shall contain such other
endorsements as Lender may reasonably request. All such endorsements shall be in
form and substance  satisfactory to Lender;  (b) comprehensive  public liability
insurance  against claims for bodily injury,  death or property damage occurring
on, in or about the Land of the  Improvements in amounts and on terms acceptable
to the Lender;  (c) flood  insurance in an amount  satisfactory to Lender and on
terms satisfactory to Lender if the Land is located in a designated flood hazard
area;  and (d)  insurance  against  such similar or other  hazards,  casualties,
liabilities  and  contingencies,  in such forms and amounts,  as Lender may from
time to time reasonably  require.  Each insurance policy shall be with a company
and in a form acceptable to Lender. Each hazard insurance policy shall include a
Form  438BFU  or  equivalent  mortgagee  endorsement  in favor of  Lender.  Each
liability  insurance  policy  shall name Lender as an  additional  insured.  All
required  policies  will provide for at least ten (10) days'  written  notice to
Lender prior to the effective date of any  cancellation  or material  amendment,
which term  shall  include  any  reduction  in the scope or limits of  coverage.
Borrower shall furnish to Lender the original of each required insurance policy,
or a certified  copy thereof  together with a certificate  of insurance  setting
forth the

                                       15
<PAGE>

coverage,  the limits of  liability,  the  carrier,  the  policy  number and the
expiration  date.  Borrower shall promptly furnish to Lender all renewal notices
relating to  insurance  policies.  Borrower  shall pay all premiums on insurance
policies  directly  to the  carrier.  At least  thirty  (30)  days  prior to the
expiration date of each such policy,  Borrower shall furnish to Lender a renewal
policy in a form  acceptable to Lender,  together with evidence that the renewal
premium has been paid. As security for the Secured Obligations,  Borrower hereby
assigns to Lender all required  insurance  policies,  together with all proceeds
thereof, rights thereto and all unearned premiums returnable upon cancellation.

         5.6 INSURANCE AND CONDEMNATION PROCEEDS.

                  5.6.1  PAYMENT  TO  LENDER.  Borrower  hereby  absolutely  and
irrevocably  assigns to Lender,  and authorizes the payor to pay to Lender,  the
following  claims,  causes of action,  awards,  payments  and rights to payment,
together with all interest that may accrue thereon (collectively, the "Claims"):

                           5.6.1.1  CONDEMNATION  AWARDS.  All awards of damages
                  and all other  compensation  payable  directly  or  indirectly
                  because of a condemnation,  proposed  condemnation,  or taking
                  for  public or  private  use that  affects  all or part of the
                  Collateral or any interest in it.

                           5.6.1.2  WARRANTY  CLAIMS.  All awards,  claims,  and
                  causes of action arising out of any warranty  affecting all or
                  any part of the  Collateral,  or for  damage  or  injury to or
                  decrease  in  value  of all or part of the  Collateral  or any
                  interest in it; and

                           5.6.1.3  INSURANCE  PROCEEDS.  All  proceeds  of  any
                  insurance policies payable because of damage or loss sustained
                  to all or part of the Collateral.

                  5.6.2  NOTICE TO LENDER.  Borrower  shall  immediately  notify
Lender in writing if: (i) any damage  occurs or any injury or loss is  sustained
to all or part  of the  Collateral,  whether  or not  covered  by  insurance  or
warranty,  or any action or proceeding  relating to any such damage,  injury, or
loss is  commenced;  or (ii) any offer is made,  or any action or  proceeding is
commenced,  that relates to any actual or proposed condemnation or taking of all
or part of the Collateral.

                  5.6.3 PURSUIT OF CLAIMS. Borrower shall pursue recovery of all
such Claims and defend its rights under any proceeding for  condemnation  of the
Collateral  or any part thereof and prosecute the same with due diligence to its
final disposition,  and shall cause any awards or settlements to be paid over to
Lender for disposition  pursuant to the terms of this Deed of Trust. Lender may,
at Lender's  option and in Lender's sole  discretion,  as  attorney-in-fact  for
Borrower,  make proof of loss and adjust and compromise any Claims, appear in or
prosecute any action or proceeding to enforce the Claims,  or participate in any
action or proceeding  relating to  condemnation  or taking of all or part of the
Collateral,  and may join  Borrower in adjusting  any loss covered by insurance.
Borrower shall deliver or cause to be delivered to Lender such

                                       16
<PAGE>

instruments  as may be requested by Lender from time to time to permit Lender to
take any such actions.

                  5.6.4 APPLICATION OF PROCEEDS. All proceeds of the Claims that
Borrower may receive or be entitled to receive  shall be paid to Lender.  Lender
shall apply any proceeds  received by it  hereunder  first to the payment of the
reasonable costs and expenses incurred in the collection of the proceeds. Lender
shall  then  apply the  remaining  balance  of such  proceeds  (the "Net  Claims
Proceeds"), in its absolute discretion and without regard to the adequacy of its
security:  (i) to any of the Secured Obligations,  notwithstanding the fact that
Secured  Obligations  may not be due  according  to the terms  thereof;  (ii) to
reimburse Borrower for the costs of reconstructing the Improvements or otherwise
repairing or restoring the Collateral; or (iii) to Borrower;  provided, however,
that if  there  are no  outstanding  Events  of  Default  under  any of the Loan
Documents and Borrower establishes,  to Lender's reasonable  satisfaction,  that
Borrower has  sufficient  funds,  including  the Net Claims  Proceeds,  to fully
rebuild  or repair the  Collateral  within  the  remaining  term of the Loan and
without  delaying  the  completion  date  of  the  Project,  Lender  shall  make
disbursements  of the Net Claims  Proceeds for purposes of repair or restoration
of the Collateral.

                  5.6.5  RESTORATION.  If the Net  Claims  Proceeds  are used to
reimburse Borrower for the cost of reconstruction, restoration, or repair of the
Collateral, the Collateral shall be promptly and diligently restored by Borrower
to the  equivalent  of its  condition  immediately  prior  to  the  casualty  or
condemnation  in accordance  with the Plans or to such other condition as Lender
may approve in writing,  and  disbursements of such Net Claims Proceeds shall be
in accordance  with  disbursement  procedures  acceptable  to Lender.  If, after
applying the Net Claims Proceeds to the Secured  Obligations,  Lender reasonably
determines  the  remaining  security to be  inadequate  to secure the  remaining
Secured  Obligations,  Borrower shall, upon written demand from Lender, repay an
amount that will reduce the remaining Secured Obligations to a balance for which
adequate security is present.

         5.7  RESERVES FOR TAXES AND  INSURANCE.  If required by Lender after an
Event of Default has occurred,  Borrower  shall deposit with Lender,  in monthly
installments,  an amount equal to one-twelfth of the estimated  aggregate annual
Impositions  and  insurance  premiums for the Project.  In such event,  Borrower
shall  cause  all  bills,  statements,   or  other  documents  relating  to  the
Impositions and insurance premiums to be sent or mailed directly to Lender. Upon
receipt of such bills, statements, or other documents, and provided Borrower has
deposited  sufficient  funds with Lender pursuant to this Section,  Lender shall
pay such amounts as may be due  thereunder  out of the funds so  deposited  with
Lender. If at any time and for any reason the funds deposited with Lender are or
will be  insufficient  to pay such amounts as may then or  subsequently  be due,
Lender shall notify  Borrower and Borrower shall  immediately  deposit an amount
equal to such deficiency  with Lender.  Notwithstanding  the foregoing,  nothing
contained  herein  shall cause Lender to be deemed a trustee of said funds or to
be obligated to pay any amounts in excess of the amount of funds  deposited with
Lender pursuant to this

                                       17
<PAGE>

Section. Lender may commingle said reserve with its own funds and Borrower shall
be entitled to no interest thereon.

         5.8 MAINTENANCE AND PRESERVATION OF THE COLLATERAL. Borrower covenants:
(a) to maintain and preserve the  Collateral in good condition and repair and in
a prudent businesslike manner; (b) not to remove, demolish or structurally alter
the Collateral or any part thereof, or alter,  restore or add to the Collateral,
or initiate  or allow any change in any zoning or other land use  classification
that affects the  Collateral  or any part of it,  except with  Lender's  express
prior written  consent,  and except such alterations as may be required by laws,
ordinances,  rules, regulations, or orders of governmental authorities or by the
terms hereof;  (c) to comply with and not suffer  violations of any existing and
future subdivision laws, building codes, zoning laws and regulations,  and other
laws, regulations,  ordinances,  rules, codes, orders,  directives,  guidelines,
building   restrictions  and  requirements  of,  and  all  agreements  with  and
commitments to, all federal, state, county or municipal  governmental,  judicial
or legal  authorities or agencies having  jurisdiction  over the Borrower or the
Project,  including  those  pertaining  to the  construction,  sale,  lease,  or
financing of the  Improvements,  and all  recorded  covenants  and  restrictions
affecting  the  Project  (the  "Requirements");  (d) not to commit or permit any
waste to or deterioration of the Collateral;  (e) to perform all other acts that
from the  character  or use of the  Collateral  may be  reasonably  necessary to
maintain and preserve its value;  (f) to perform all obligations  required to be
performed  under the Loan  Documents,  and all  other  obligations  of  Borrower
pertaining  to the  Collateral;  and  (g) to  execute  and,  where  appropriate,
acknowledge  and deliver such further  instruments as Lender or Trustee may deem
necessary or appropriate to preserve,  continue,  perfect and enjoy the security
provided for herein.

         5.9 DEFENSE  AND NOTICE OF  ACTIONS;  COSTS.  Borrower  shall,  without
liability,  cost, or expense to Lender or Trustee, protect, preserve, and defend
Borrower's  fee  interest in and to the Project and  Borrower's  interest in the
Collateral, the security of this Deed of Trust, any additional or other security
for the  Secured  Obligations,  and the  rights or  powers of Lender or  Trustee
hereunder against all adverse claims. Said protection, preservation, and defense
shall  include,  but not be limited  to,  protection,  preservation  and defense
against all adverse claimants to and encumbrancers of Borrower's interest in the
Collateral,  whether or not such claimants or  encumbrancers  assert an interest
paramount  to that of Lender.  Borrower  shall give  Lender and  Trustee  prompt
notice in writing of the filing of any such action or proceeding. Borrower shall
pay all costs,  fees,  and  expenses  including,  without  limitation,  costs of
evidence  of title,  trustees'  fees,  and  reasonable  attorneys'  fees paid or
incurred in any action or proceeding  in which Lender and/or  Trustee may appear
or be made a  party,  whether  or not  pursued  to  final  judgment,  and in any
exercise of the power of sale or other remedy contained  herein,  whether or not
such sale is actually consummated or such other remedy is actually prosecuted to
completion.

         5.10  RIGHT  OF   INSPECTION.   Lender,   its  agents,   employees  and
representatives shall have the right to enter the Project at any reasonable time
for the purpose of inspecting the Project and ascertaining Borrower's compliance
with the terms

                                       18
<PAGE>

hereof,  and for such other purposes and in accordance  with the terms specified
in any of the other Loan Documents.

         5.11 ACTIONS OF TRUSTEE;  MATTERS CONCERNING  TRUSTEE.  Trustee accepts
this trust when this Deed of Trust,  duly executed and  acknowledged,  becomes a
public record as provided by law.

                  5.11.1  COMPENSATION.  Borrower  agrees  to  pay  fees  in the
maximum  amounts  legally  permitted,  or  reasonable  fees as may be charged by
Lender and Trustee when the law provides no maximum limit, for any services that
Lender or Trustee  may render in  connection  with this Deed of Trust.  Borrower
further  agrees to pay or  reimburse  Lender for all costs,  expenses  and other
advances  that may be  incurred  or made by Lender or Trustee in any  efforts to
enforce any terms of this Deed of Trust, whether any lawsuit is filed or not, or
in defending any action or proceeding  arising under or relating to this Deed of
Trust, including attorneys' fees and other legal costs, costs of any foreclosure
sale or bankruptcy proceeding affecting the Borrower or the Collateral,  and any
cost of evidence of title.

                  5.11.2 EXCULPATION. Lender shall not be directly or indirectly
liable  to  Borrower  or any other  person as a  consequence  of:  (i)  Lender's
exercise of or failure to exercise any rights, remedies, or powers granted to it
in this Deed of Trust or to perform or discharge any  obligation or liability of
Borrower  under any  agreement  related to the  Collateral or under this Deed of
Trust;  or (ii) any loss sustained by Borrower or any third party resulting from
any act or omission of Lender in managing the Project, unless the loss is caused
by the  willful  misconduct  or gross  negligence  of  Lender.  Borrower  hereby
expressly  waives and releases all liability of the types described  above,  and
agrees that no such liability shall be asserted against or imposed upon Lender.

                  5.11.3  INDEMNIFICATION.  Borrower agrees to indemnify Trustee
and  Lender  against  and  hold  each of them  and  their  respective  officers,
employees,  agents, and  representatives,  harmless from and against any and all
losses, damages, liabilities,  claims, causes of action, judgments, court costs,
attorneys'  fees, and other legal expenses,  cost of evidence of title,  cost of
evidence of value,  and other  costs and  expenses  that  either may  reasonably
suffer or incur: (i) in performing any act required or permitted by this Deed of
Trust or any of the other Loan  Documents or by law; (ii) because of any failure
of Borrower to perform any of its Secured  Obligations;  or (iii) because of any
alleged  obligation of or  undertaking  by Lender to perform or discharge any of
the representations,  warranties,  conditions, covenants or other obligations in
any document  relating to the  Collateral  other than the Loan  Documents.  This
agreement by Borrower to indemnify  Trustee and Lender shall survive the release
and  cancellation  of any or all of the  Secured  Obligations  and  the  full or
partial release and/or reconveyance of this Deed of Trust.

                  5.11.4  PAYMENT  BY  BORROWER.   Borrower  shall  fulfill  all
obligations to pay money arising under this Section  immediately  upon demand by
Trustee or Lender.  Each such obligation shall be added to, and considered to be
part of, the

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<PAGE>

principal  of the Note,  and shall bear  interest  from the date the  obligation
arises at the rate applicable to the principal balance of the Note, as such rate
may be adjusted.

                  5.11.5 CERTAIN  RIGHTS.  With the approval of Lender,  Trustee
shall  have  the  right  to take any and all of the  following  actions:  (i) to
select,  employ,  and advise with counsel (who may be, but need not be,  counsel
for Lender)  upon any matters  arising  hereunder,  including  the  preparation,
execution,  and  interpretation  of the  Loan  Documents,  and  shall  be  fully
protected  in relying as to legal  matters  on the  advice of  counsel,  (ii) to
execute any of the trusts and powers  hereof and to perform  any duty  hereunder
either directly or through his agents or attorneys,  (iii) to select and employ,
in and  about the  execution  of his  duties  hereunder,  suitable  accountants,
engineers and other experts,  agents and attorneys-in-fact,  either corporate or
individual,  not  regularly in the employ of Trustee,  and Trustee  shall not be
answerable  for  any  act,  default,  negligence,  or  misconduct  of  any  such
accountant,  engineer or other expert,  agent or  attorney-in-fact,  if selected
with  reasonable  care,  or for any error of  judgment or act done by Trustee in
good faith, or be otherwise  responsible or accountable  under any circumstances
whatsoever, except for Trustee's gross negligence or bad faith, and (iv) any and
all other  lawful  action as Lender may  instruct  Trustee to take to protect or
enforce Lender's rights hereunder.

                  5.11.6  RETENTION  OF MONEY.  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  applicable  law) and
Trustee  shall be under no  liability  for  interest  on any moneys  received by
Trustee hereunder.

                  5.11.7 SUCCESSOR TRUSTEES. Trustee may resign by the giving of
notice of such  resignation  in writing or verbally to Lender.  If Trustee shall
die, resign, or become  disqualified from acting in the execution of this trust,
or if, for any reason,  Lender shall  prefer to appoint a substitute  trustee or
multiple substitute  trustees,  or successive  substitute trustees or successive
multiple substitute trustees,  to act instead of the aforenamed Trustee,  Lender
shall  have full  power to  appoint a  substitute  trustee  (or,  if  preferred,
multiple  substitute  trustees) in succession who shall succeed (and if multiple
substitute  trustees are appointed,  each of such multiple  substitute  trustees
shall succeed) to all the estates,  rights, powers, and duties of the aforenamed
Trustee.  Such appointment may be executed by any authorized agent of Lender. If
multiple  substitute  trustees are appointed,  each of such multiple  substitute
trustees shall be empowered and authorized to act alone without the necessity of
the joinder of the other multiple  substitute  trustees,  whenever any action or
undertaking  of such  substitute  trustees is  requested  or  required  under or
pursuant to this Deed of Trust or applicable law.

         5.12 PERMITTED ACTIONS.

                  5.12.1  RELEASES,  EXTENSIONS,  MODIFICATION,  AND  ADDITIONAL
SECURITY.  From time to time,  Lender  may  perform  any of the  following  acts
without incurring any liability or giving notice to any person:  (i) release any
person  liable for payment of any Secured  Obligation;  (ii) extend the time for
payment, or otherwise alter

                                       20
<PAGE>

the terms of payment, of any Secured Obligation; (iii) accept additional real or
personal  property of any kind as security for any Secured  Obligation;  or (iv)
alter, substitute, or release all or any portion of the Collateral.

                  5.12.2  ADDITIONAL  ACTIONS.  From  time  to time  Lender,  or
Trustee  when  requested  to do so by Lender in writing,  may perform any of the
following  acts without  incurring  any liability or giving notice to any person
and  without  affecting  the  personal  liability  of any person for  payment or
performance of any of the Secured Obligations:  (i) consent to the making of any
plat or map of the Project or any part of it; (ii) join in granting any easement
or creating any covenant or restriction affecting the Project; (iii) join in any
extension, subordination, or other agreement affecting this Deed of Trust or the
lien of it;  or (iv)  reconvey  the  Collateral  or any part of it  without  any
warranty.

         5.13 FULL RECONVEYANCE.  When all of the Secured  Obligations have been
paid and  performed  in full and there  exists no default  under the Loan or any
Related  Loan,   Lender  shall  request  Trustee  in  writing  to  reconvey  the
Collateral, and shall surrender this Deed of Trust and all notes and instruments
evidencing the Secured  Obligations to Trustee.  When Trustee receives  Lender's
written request for reconveyance and all reconveyance  fees,  recording fees, or
other  fees  and  expenses  owing to it by  Borrower  hereunder,  Trustee  shall
reconvey  the  Collateral,  or so much of it as is then held  under this Deed of
Trust,  without warranty to the person or persons legally entitled to it. In the
reconveyance,  the grantee may be  described  as "the person or persons  legally
entitled  thereto," and the recitals of any matters or facts shall be conclusive
proof of their  truthfulness.  Neither Lender nor Trustee shall have any duty to
determine  the  right  of  persons  claiming  to be  rightful  grantees  of  any
reconveyance.

         5.14 LATE  CHARGE.  If  Borrower  commits  an Event of  Default  in the
payment of an amount due and payable under this Deed of Trust,  a late charge as
specified  in and  measured by the Note may be charged by Lender for the purpose
of defraying the extra expenses incident to handling such delinquent payment and
the loss of the use of funds  resulting from  Borrower's  non-payment  when due.
Such late charge shall be paid without  prejudice to the rights of the holder of
the Note to collect any other amounts provided to be paid thereunder.

         5.15  SUBROGATION.  Lender  shall  be  subrogated  to the  liens of all
encumbrances, whether released of record or not, that are discharged in whole or
in part by Lender in accordance  with this Deed of Trust or with the proceeds of
the Loan.

         5.16 NOTICE OF CHANGE.  Borrower shall give Lender prior written notice
of any  change  in:  (i) the  location  of its  place of  business  or its chief
executive office if it has more than one place of business; (ii) the location of
any of the  Collateral,  including the Books and Records;  and (iii)  Borrower's
name or business structure. Unless approved by Lender in writing, all Collateral
that  consists of personal  property  (other than the Books and Records) will be
located at the Project and all Books and Records  will be located at  Borrower's
place of business, or chief executive office if Borrower has more than one place
of business.

                                   ARTICLE 6.
                              DEFAULTS AND REMEDIES

         6.1  EVENTS  OF  DEFAULT.  The  occurrence  of any  one or  more of the
following shall constitute an "Event of Default":

                  6.1.1  PAYMENT  DEFAULT.  Failure  to make any  payment  or to
perform  an  obligation  to pay money that  arises  under the Note or any of the
other Loan Documents;

                  6.1.2 CONSTRUCTION  DEFAULTS. Any of the following relating to
construction  of the Project:  (i) The filing of any mechanic's lien or any stop
notice with respect to the Project that is not bonded  against or released  upon
Borrower's  discovery thereof and within thirty (30) business days after filing;
(ii) Any material failure in the construction and completion of the Improvements
to comply with: (a) the Plans;  (b) the  Requirements,  or (c) the terms of this
Deed of Trust or the Loan Agreement,  if such failure is not cured within thirty
(30)  days  after  notice  thereof  by  Lender,  or,  if  such  cure  cannot  be
accomplished  within such 30-day period  through the exercise of diligence,  the
failure by Borrower to promptly  commence the required  cure and  thereafter  to
continue the cure with due diligence until such default is totally cured,  which
must in any event occur  within  ninety (90) days after such  default;  or (iii)
Borrower's  failure to proceed with work on the  Improvements  in a diligent and
workmanlike  manner if such failure is not cured within  fifteen (15) days after
written notice thereof by Lender.

                  6.1.3 UNAUTHORIZED  TRANSFER. A transfer,  purported transfer,
or change of ownership or control of Borrower.

                  6.1.4 INSOLVENCY. Borrower or any trustee thereof: (i) files a
petition in bankruptcy or for an arrangement,  reorganization, or any other form
of debtor relief; or such a petition is filed against Borrower or any trustee of
Borrower or any guarantor and is not dismissed within forty-five (45) days after
the date of filing; (ii) commences any proceeding for dissolution or liquidation
or any such proceeding is commenced against Borrower and is not dismissed within
forty-five  (45)  days  after  the  date of  commencement;  or  (iii)  makes  an
assignment  of all or  substantially  all of its assets  for the  benefit of its
creditors.

                  6.1.5  APPOINTMENT  OF RECEIVER.  A decree or order is entered
for the appointment of a trustee, receiver, or liquidator for Borrower or any of
the Collateral,  and such decree or order is not vacated within  forty-five (45)
days after the date of entry.

                  6.1.6 MONEY JUDGMENT.  A final  judgment,  order or decree for
the payment of money shall be rendered  against  Borrower and Borrower shall not
satisfy  and pay the same or cause it to be  discharged  within 30 days from the
entry  thereof,  or shall not appeal  therefrom  and secure a stay of  execution
pending such appeal,  or there is an  attachment,  execution,  or other judicial
seizure of any portion of the assets of

                                       21
<PAGE>

Borrower  and such  seizure is not  discharged  or bonded  against  to  Lender's
reasonable satisfaction within thirty (30) days.

                  6.1.7   MISREPRESENTATION.   Any  written   representation  or
disclosure  made  to  Lender  by  Borrower  proves  to be  materially  false  or
misleading when made,  whether or not that written  representation or disclosure
is contained herein or in any of the other Loan Documents.

                  6.1.8 SECURITY  IMPAIRED.  There is an uninsured casualty with
respect  to any  material  portion  of the  Collateral  and  Borrower  fails  to
immediately  repair such damage,  Borrower  fails to satisfy the  conditions set
forth  in the  Deed of  Trust  for the  release  of  insurance  proceeds  or any
condemnation award, or, whether or not Lender has received and applied insurance
proceeds or any condemnation award to the Secured Obligations in accordance with
the Deed of Trust, Lender reasonably determines that its security is impaired by
such casualty or condemnation.

                  6.1.9 DEFAULTS UNDER  AGREEMENTS WITH THIRD PARTIES.  Borrower
defaults  in the  performance  of any  material  covenant  under  any  permitted
financing related to the Project, or under any sales agreement,  lease, or other
instrument assigned to Lender as security for the Loan.

                  6.1.10 OTHER DEFAULTS UNDER LOAN DOCUMENTS.  Borrower fails to
perform  any other  covenant,  agreement,  or  obligation  under any of the Loan
Documents,  including the failure to provide any reports required to be provided
to Lender,  if such default is not cured within  thirty (30) days after  written
notice  thereof by Lender (or such other  period as may  otherwise  be specified
herein or in the Loan Document under which such default arises),  or an Event of
Default occurs as defined in any of the other Loan Documents.

                  6.1.11  DEFAULT  UNDER  RELATED  LOAN  DOCUMENTS.  An Event of
Default as defined under the Related Loan Documents occurs.

         6.2 RIGHTS AND REMEDIES.  At any time after the  occurrence of an Event
of Default  hereunder,  Lender  and/or  Trustee shall have all of the rights and
remedies described below, in addition to any other rights and remedies of Lender
under  the Loan  Agreement,  the  other  Loan  Documents,  or the  Related  Loan
Documents.  To the  fullest  extent  permitted  by law,  all of such  rights and
remedies  shall be cumulative  and the exercise of any one or more of them shall
not constitute an election of remedies:

                  6.2.1 RECEIVER. If an Event of Default shall have occurred and
be  continuing,  Lender  may,  as a matter  of right and  without  regard to the
then-current  value of the Collateral or the interest of Borrower therein or the
sufficiency  of the  security  for  repayment  and  performance  of the  Secured
Obligations,  upon ex parte application and without notice to Borrower or anyone
claiming  under  Borrower,  and  without  any  showing of  insolvency,  fraud or
mismanagement  on the part of Borrower,  and without the necessity of filing any
judicial or other  proceeding  other than the  proceeding  for  appointment of a
receiver, apply to any court having jurisdiction to

                                       22
<PAGE>

appoint a receiver or receivers for the Collateral or any portion  thereof,  and
of the Rents,  Issues and Profits,  and Borrower hereby irrevocably  consents to
the appointment of a receiver or receivers upon such Event of Default.  Any such
receiver  shall have the usual powers and duties of receivers in like or similar
cases and all the powers and duties of Lender set forth in this Deed of Trust or
any of the other Loan  Documents.  Employment  by Lender shall not  disqualify a
person from serving as receiver.

                  6.2.2 CURE;  PROTECTION OF SECURITY.  With or without  notice,
and without releasing  Borrower from any obligation  hereunder,  Lender may (but
shall not be  obligated  to) cure any breach or default of  Borrower  and, if it
chooses to do so in its sole  discretion,  make such advances and do any and all
other  things  that  it  may in  its  sole  discretion  consider  necessary  and
appropriate to protect its Collateral and the security of this Deed of Trust. In
addition to and without  limitation of the foregoing,  if Borrower has failed to
keep or perform any covenant  whatsoever  contained in this Deed of Trust or the
other Loan Documents, Lender may, but shall not be obligated to any person to do
so, perform or attempt to perform said covenant, and any payment made or expense
incurred in the performance or attempted  performance of any such covenant shall
be and become a part of the Secured  Obligations,  and Borrower  promises,  upon
demand,  to pay to Lender,  at the place where the Note is payable,  all sums so
advanced or paid by Lender, with interest from the date when paid or incurred by
Lender at the default rate of interest  provided in the Note. No such payment by
Lender  shall  constitute  a waiver of any Event of Default.  In addition to the
liens and security  interests hereof,  Lender shall be subrogated to all rights,
titles,  liens, and security  interests securing the payment of any debt, claim,
tax, or assessment for the payment of which Lender may make an advance, or which
Lender may pay.

                  6.2.3   ENTRY.   Lender,   in   person,   by   agent,   or  by
court-appointed receiver, with or without bringing any action or proceeding, may
terminate  Borrower's right and license to collect the Rents, Issues and Profits
and  to  administer  the  Leases,   and  enter,  take  possession  of,  complete
construction  on, manage and operate,  and lease or sell, all or any part of the
Collateral,  and may also do any and all other things in  connection  with those
actions that Lender may in its sole discretion consider necessary or appropriate
to protect the security of this Deed of Trust or that are otherwise permitted to
be taken or conducted by Lender under the Loan Agreement. If Lender so requests,
Borrower shall  assemble any  Collateral  that has been removed from the Project
and make all of it available to Lender at the Project  site.  The entering  upon
and taking  possession of the Project,  the collection of the Rents,  Issues and
Profits and the application thereof as aforesaid, or any of such acts, shall not
cure or waive any default or notice of default hereunder or invalidate any other
right or remedy that Lender may have in response to such  default or pursuant to
such notice and,  notwithstanding the continued possession of the Project or the
collection, receipt, and application of the Rents, Issues and Profits by Lender,
Trustee,  or Lender's receiver or agent,  Trustee or Lender shall be entitled to
exercise  every right  provided for in any of the Loan  Documents or by law upon
the occurrence of any Event of Default.

                                       23
<PAGE>

                  6.2.4 UNIFORM COMMERCIAL CODE REMEDIES. With respect to all or
any part of the Collateral that constitutes personal property, Lender shall have
all of, and may  exercise  any or all of, the rights and  remedies  of a secured
party under the Uniform Commercial Code in effect in Texas.

                  6.2.5  JUDICIAL  ACTION.  Lender may  commence and maintain an
action or actions, at law or in equity, in any court of competent  jurisdiction,
to enforce the payment and/or performance of the Secured Obligations (including,
without limitation,  to obtain specific enforcement of the covenants of Borrower
hereunder,  and  Borrower  agrees  that  such  covenants  shall be  specifically
enforceable  by  injunction  or any  other  appropriate  equitable  remedy),  to
foreclose the liens and security  interests of this Deed of Trust as against all
or any part of the  Collateral,  and to have  all or any part of the  Collateral
sold under the judgment or decree of a court of competent jurisdiction. Borrower
hereby waives the defense of laches and any applicable  statute of  limitations.
If this Deed of Trust is foreclosed by judicial action,  and the Collateral sold
at a foreclosure  sale, the purchaser may, during any redemption period allowed,
make such repairs or alterations on the Land as may be reasonably  necessary for
the proper operation,  care, preservation,  protection and insuring thereof. Any
sums so paid together with interest thereon from the time of such expenditure at
the lesser of the default rate under the Note, or the maximum rate  permitted by
law,  shall be added to and become a part of the amount  required to be paid for
redemption  from such sale.  In addition,  Lender will be entitled to a judgment
providing that, if the foreclosure sale proceeds are insufficient to satisfy the
judgment, execution may issue for the deficiency.

                  6.2.6  REALIZATION  ON  SECURITY.  Lender  may  resort  to and
realize  upon or waive the  security  hereunder  and any other  security  now or
hereafter  held by Lender in such  order and  manner as  Trustee  and  Lender or
either of them may, in their sole  discretion,  determine;  which resort to such
security  may be  taken  concurrently  or  successively  and  in one or  several
consolidated  or independent  judicial  actions or lawfully  taken  non-judicial
proceedings, or both.

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

                                       24
<PAGE>

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

                  6.2.7.1 TRUSTEE'S DEEDS. After any sale under this subsection,
Trustee shall make good and sufficient deeds, assignments, and other conveyances
to the purchaser or purchasers thereunder in the name of Borrower, conveying the
Collateral  or any part  thereof so sold to the  purchaser  or  purchasers  with
general  warranty  of  title  by  Borrower.  It is  agreed  that  in any  deeds,
assignments  or other  conveyances  given by Trustee,  any and all statements of
fact or other recitals therein made as to the identity of Lender, the occurrence
or existence of any Event of Default, the notice of intention to accelerate,  or
acceleration of, the maturity of the Secured  Obligations,  the request to sell,
notice  of  sale,  time,   place,   terms  and  manner  of  sale,  and  receipt,
distribution,  and  application  of the money  realized  therefrom,  the due and
proper  appointment  of a substitute  trustee,  and without being limited by the
foregoing,  any  other  act or thing  having  been  duly done by or on behalf of
Lender or by or on behalf of  Trustee,  shall be taken by all  courts of law and
equity as prima facie  evidence  that such  statements  or recitals  state true,
correct,  and complete facts and are without further question to be so accepted,
and  Borrower  does hereby  ratify and confirm any and all acts that Trustee may
lawfully do in the premises by virtue hereof.

                                       25
<PAGE>

                           6.2.7.2   RELEASES,   EXTENSIONS,   MODIFICATION  AND
                  ADDITIONAL  SECURITY.  Without  affecting the liability of any
                  person for payment of any of the Secured  Obligations,  Lender
                  may  make  any  agreement  or take any  action  extending  the
                  maturity or  otherwise  altering the terms or  increasing  the
                  amount  of  any  of  the  Secured   Obligations,   and  accept
                  additional  security  or  release  all  or a  portion  of  the
                  Collateral and/or other security for the Secured Obligations.

                                       26
<PAGE>

                           6.2.7.3  ACCELERATION  NOT REQUIRED.  Lender may take
                  any of the actions  permitted  under  Sections  6.2.1  through
                  6.2.3  regardless  of the  adequacy  of the  security  for the
                  Secured  Obligations,  or  whether  any or all of the  Secured
                  Obligations  have  been  declared  to be  immediately  due and
                  payable, or whether notice of default and election to sell has
                  been given under this Deed of Trust.

                           6.2.7.4 OTHER REMEDIES. In addition to the foregoing,
                  upon the  occurrence  of an Event of  Default,  Lender  and/or
                  Trustee  shall have and may  exercise any and all other rights
                  and  remedies  available  to  them  at law or in  equity.  The
                  exercise or failure to exercise any right or remedy  available
                  to Lender or Trustee  shall in no event be deemed or construed
                  to be a waiver or release of any rights or  remedies of Lender
                  or  Trustee  under  the Loan  Documents  or the  Related  Loan
                  Documents, or at law or in equity.

         6.3 PAYMENT OF COSTS,  EXPENSES,  AND  ATTORNEYS'  FEES.  All costs and
expenses  reasonably  incurred by Trustee and Lender in  enforcing  the remedies
available to them  hereunder or otherwise  protecting  the  Collateral  or other
rights or interests of Lender (including,  without  limitation,  court costs and
attorneys' fees, whether incurred in litigation or not, expenses for evidence of
title, appraisals and surveys and trustees' fees, and costs and fees relating to
any bankruptcy,  reorganization,  or insolvency  proceeding) shall constitute an
additional  obligation  of  Borrower  to  Lender.   Borrower  shall  immediately
reimburse  Lender and Trustee for all costs and expenses  that Lender or Trustee
may incur by reason  of, or  arising  out of,  or in  connection  with:  (a) any
Default;  (b) any action or  proceeding in which Lender or Trustee may appear or
commence to protect,  preserve,  exercise or enforce their  rights,  remedies or
security interests under this Deed of Trust, or under any document or instrument
evidencing  the  Secured  Obligations  secured  by this Deed of Trust,  or which
otherwise  relates to the  Project,  including  all appeals  therefrom;  (c) the
performance of any act authorized or permitted  hereunder;  and (d) the exercise
of any other rights or remedies under this Deed of Trust,  or under any document
or instrument  evidencing the Secured Obligations secured by this Deed of Trust,
or otherwise  relating,  to the  protection of Lender's or Trustee's  rights and
interest  hereunder or under any document or instrument  evidencing  the Secured
Obligations  secured hereby,  whether or not a suit or proceeding is

                                       27
<PAGE>

instituted.  Such costs and expenses shall include without  limitation the fees,
charges and expenses of attorneys,  engineers,  accountants,  appraisers, expert
witnesses, consultants and other professional assistants and advisors, costs and
expenses of searching records,  examining title and determining rights in, title
to, or the value of, the Project, or the boundaries  thereof,  including but not
limited to title  company  charges,  title  insurance  premiums,  survey  costs,
publication costs, and other charges incident thereto, all whether or not a suit
or proceeding is instituted.  Borrower agrees to and shall pay,  immediately and
without  demand,  all sums so  expended  by Lender  or  Trustee,  together  with
interest from the date of  expenditure,  at the highest legal interest rate then
payable  under  the  Loan  Documents,  all of which  sums  plus  interest  shall
constitute additional Secured Obligations secured by this Deed of Trust

         6.4 REMEDIES NOT EXCLUSIVE.  Trustee and/or Lender shall be entitled to
enforce the payment and  performance of any Secured  Obligations and to exercise
any and all rights,  powers,  and remedies  under this Deed of Trust,  any other
Loan Document, or any Related Loan Document,  notwithstanding the fact that some
or all of the Secured  Obligations  may now or hereafter  be otherwise  secured.
Trustee and/or Lender shall be entitled to enforce all such rights  concurrently
or  separately,  in such order and manner as they or either of them may in their
absolute  discretion  determine.  No remedy is intended to be  exclusive  of any
other remedy, but each shall be cumulative and in addition to the others, to the
fullest extent permitted by law.

         6.5 MISCELLANEOUS.

                  6.5.1 Lender may release,  regardless  of  consideration,  any
part of the  Collateral  without,  as to the  remainder,  in any way  impairing,
affecting,  subordinating, or releasing the lien or security interests evidenced
by this Deed of Trust or the other Loan  Documents or affecting the  obligations
of Borrower or any other party to pay and perform the Secured  Obligations.  For
payment of the Secured  Obligations,  Lender may resort to any of the collateral
therefor in such order and manner as Lender may elect. No collateral heretofore,
herewith,  or hereafter taken by Lender shall in any manner impair or affect the
collateral  given pursuant to the Loan  Documents,  and all collateral  shall be
taken, considered, and held as cumulative.

                  6.5.2 Borrower hereby irrevocably and  unconditionally  waives
and  releases:  (i) all benefits  that might accrue to Borrower by virtue of any
present or future law exempting the Collateral from attachment,  levy or sale on
execution or  providing  for any  appraisement,  valuation,  stay of  execution,
exemption from civil process, redemption, or extension of time for payment; (ii)
notices of any Event of  Default or of the  exercise  of any right,  remedy,  or
recourse not explicitly  required under the Loan Documents;  and (iii) any right
to a marshaling of assets or a sale in inverse order of alienation.

         6.6 WAIVER OF DEFICIENCY STATUTE.

                  6.6.1 In the event an  interest  in any of the  Collateral  is
foreclosed upon pursuant to a judicial or nonjudicial foreclosure sale, Borrower
agrees as follows:  notwithstanding  the provisions of Sections 51.003,  51.004,
and 51.005 of the Texas  Property  Code (as the same may be amended from time to
time), and to the extent permitted by law,  Borrower agrees that Lender shall be
entitled  to seek a  deficiency  judgment  from  Borrower  and any  other  party
obligated  on the Note equal to the  difference  between the amount owing on the
Note and the other Loan  Documents and the amount for which the  Collateral  was
sold  pursuant  to  judicial  or  nonjudicial  foreclosure  sale,  and to seek a
deficiency judgment from Borrower for the remainder of the Secured

                                       28
<PAGE>

Obligations  not  repaid to Lender  from the  proceeds  of the  Collateral  sold
pursuant  to  judicial  or  nonjudicial  foreclosure  sale.  Borrower  expressly
recognizes that this section constitutes a waiver of the above-cited  provisions
of the Texas Property Code that may otherwise  permit Borrower and other persons
against whom recovery of deficiencies  is sought or any guarantor  independently
(even absent the initiation of deficiency  proceedings  against them) to present
competent  evidence of the fair market value of the Collateral as of the date of
the  foreclosure  sale and offset against any deficiency the amount by which the
foreclosure  sale price is  determined  to be less than such fair market  value.
Borrower further  recognizes and agrees that this waiver creates an irrebuttable
presumption that the foreclosure sale price is equal to the fair market value of
the  Collateral for purposes of  calculating  deficiencies  owed by Borrower and
others against whom recovery of a deficiency is sought.

                  6.6.2  Alternatively,  in the event the  waiver  provided  for
above is determined by a court of competent  jurisdiction  to be  unenforceable,
the following shall be the basis for the finder of fact's  determination  of the
fair market value of the  Collateral as of the date of the  foreclosure  sale in
proceedings governed by Sections 51.003, 51.004 and 51.005 of the Texas Property
Code (as amended from time to time):  (i) the  Collateral  shall be valued in an
"as is" condition as of the date of the foreclosure sale, without any assumption
or expectation  that the  Collateral  will be repaired or improved in any manner
before a resale of the Collateral after foreclosure; (ii) the valuation shall be
based upon an assumption that the foreclosure  purchaser desires a resale of the
Collateral  for cash promptly  (but no later than twelve (12) months)  following
the foreclosure  sale; (iii) all reasonable  closing costs  customarily borne by
the seller in commercial  real estate  transactions  should be deducted from the
gross  fair  market  value of the  Collateral,  including,  without  limitation,
brokerage  commissions,  title  insurance,  a  survey  of  the  Collateral,  tax
prorations,  attorneys'  fees, and marketing  costs;  (iv) the gross fair market
value of the Collateral shall be further discounted to account for any estimated
holding  costs  associated  with   maintaining  the  Collateral   pending  sale,
including,  without limitation,  utilities  expenses,  property management fees,
taxes and  assessments  (to the extent not accounted for in clause (iii) above),
and other maintenance,  operational and ownership  expenses;  and (v) any expert
opinion  testimony given or considered in connection with a determination of the
fair market  value of the  Collateral  must be given by persons  having at least
five (5) years  experience in appraising  property similar to the Collateral and
who have conducted and prepared a complete  written  appraisal of the Collateral
taking into consideration the factors set forth above.

                                   ARTICLE 7.
                                   ASSIGNMENT

         7.1 NO ASSIGNMENT OR ENCUMBRANCE  WITHOUT  LENDER'S  CONSENT.  Borrower
acknowledges  and agrees that the Secured  Obligations  are personal to Borrower
and that the identity of Borrower and their employees,  the relationship between
Borrower and Lender, and the  creditworthiness,  business  expertise,  financial
condition,  and  continued  control of the  Collateral of Borrower were material
inducements  upon which  Lender  relied in  arranging  the Secured  Obligations.
Accordingly,  neither

                                       29
<PAGE>

Borrower shall, without Lender's prior written consent or as otherwise expressly
permitted  under  this Deed of Trust or the Loan  Agreement:  (i) sell,  convey,
assign,  encumber, or otherwise transfer any of its right, title, or interest in
and to the  Collateral  or any other  Project  asset,  whether such  transfer or
encumbrance  is voluntary or by  operation  of law,  other than as  specifically
permitted under the Loan Documents,  (ii) sell, assign, or transfer its interest
as borrower under the Secured Obligations,  or (iii) transfer any stock or other
ownership  interest  that  would  cause a  material  change  in the  control  of
Borrower.  Any attempted  assignment without such prior written consent shall be
null and void, and of no effect, and shall also constitute,  at Lender's option,
an Event of Default by  Borrower  under this Deed of Trust and each of the other
Loan Documents.

         7.2 CONDITIONS TO APPROVAL OF  ASSIGNMENT.  As a condition of approving
any  assignment,  Lender may  impose  such  requirements  and  conditions  as it
determines are appropriate in its sole discretion,  including but not limited to
the  requirement  that Borrower and the assuming party pay, in advance,  any and
all  reasonable  costs  and  expenses,   including  reasonable   attorney's  and
accountant's fees, incurred by the Lender in connection  therewith.  No approval
of any assignment shall cause a release of Borrower from any liability under the
Loan  Documents  without  Lender's prior written  consent,  which consent may be
withheld in Lender's sole discretion.

         7.3  LOAN  DUE  UPON  PROHIBITED  TRANSFER  OR  ENCUMBRANCE.  Upon  any
transfer,  assignment,  or  encumbrance,  as  described in Section 7.1 for which
Lender's  written  approval is required  but has not been  obtained,  the entire
outstanding balance owing under the Note, including principal, accrued interest,
and any other  amounts  owing  under the Loan  Documents  shall  become  due and
payable at Lender's  option,  without any requirement for notice or demand,  and
Lender may pursue any remedies  granted to it under this Deed of Trust or any of
the other Loan Documents.

         7.4  ASSIGNMENT  AND  PARTICIPATION  BY LENDER.  Lender  shall have the
right, at any time and from time to time and upon notice to Borrower,  to assign
or sell the Secured  Obligations,  and/or any one or more  participations in the
Secured  Obligations,  or to include such  obligations in a securitized  pool of
indebtedness,  accompanied  by an  assignment  and/or  delegation  of any or all
related rights or obligations  of Lender under the Loan  Documents,  without the
need for any form of consent from Borrower.

                                   ARTICLE 8.
                            MISCELLANEOUS PROVISIONS

         8.1 ADDITIONAL  PROVISIONS.  The Loan Documents  fully state all of the
terms and conditions of the parties'  agreement  regarding the matters mentioned
in or incidental to this Deed of Trust.  The Loan  Documents  also grant further
rights to Lender and contain  further  agreements and  affirmative  and negative
covenants by Borrower that apply to this Deed of Trust and to the Collateral.

                                       30
<PAGE>

         8.2 LIMITATION ON INTEREST AND CHARGES. Borrower agrees to an effective
rate of interest that is the rate provided for in the Note,  plus any additional
rate of interest resulting from any other charges in the nature of interest paid
or to be paid by or on behalf of  Borrower,  or any  benefit  received  or to be
received by Lender,  in connection with the Secured  Obligations.  The interest,
fees and charges under the Loan Documents  shall not exceed the maximum  amounts
permitted by any applicable law. If any such interest, fee or charge exceeds the
maximum,  the  interest,  fee or charge  shall be  reduced by the excess and any
excess amounts  already  collected  from Borrower shall be refunded.  Lender may
refund such excess  either by treating the excess as a  prepayment  of principal
under the Note or by making a direct payment to Borrower. The provisions of this
paragraph shall control over any inconsistent provision in the Loan Documents.

         8.3 PERMITTED CONTESTS. Borrower may contest or object in good faith to
the amount or  validity  of any tax,  assessment,  claim,  demand,  levy,  lien,
encumbrance,  charge  or  notice  of  noncompliance  asserted  by a third  party
(collectively, a "Claim"), but only in accordance with the following conditions:
(i) Borrower shall first give written notice to Lender and deposit with Lender a
bond or other  security  satisfactory  to Lender in such amount as Lender  shall
reasonably  require,  up to 150% of the  amount  of the  Claim or  other  sum in
controversy,  and shall have  demonstrated to Lender's  reasonable  satisfaction
that no portion of the  Collateral  will be sold to satisfy  the Claim  prior to
final resolution;  (ii) Borrower shall promptly and diligently  proceed to cause
the Claim to be settled and discharged in a manner not  prejudicial to Lender or
its rights  hereunder;  (iii) if Borrower  shall fail to proceed  diligently  to
discharge  the Claim,  then, in addition to any other right or remedy of Lender,
Lender may, but shall not be obligated  to,  discharge  the same,  by paying the
amount claimed to be due, or by depositing in court a bond or the amount claimed
or otherwise  giving  security for such Claim, or in such manner as is or may be
prescribed by law, at Borrower's expense;  (iv) Lender may employ an attorney or
attorneys to protect its rights hereunder, and in such event, Borrower shall pay
Lender the attorneys'  fees and expenses  incurred by Lender,  whether or not an
action  is  actually  commenced  against  Borrower  by  reason  of  any  default
hereunder;  and (v)  Borrower  shall  have  provided  such  good and  sufficient
undertaking  as may be required or permitted by law to  accomplish a stay of any
legal proceedings then pending in connection with the Claim.

         8.4 COOPERATION. Borrower shall, upon request, cooperate with Lender or
Trustee to correct any defect,  error or omission  that may be discovered in the
contents of this Deed of Trust or in the execution or acknowledgment hereof, and
will execute,  acknowledge,  and deliver such further  instruments and take such
further actions as may be reasonably requested by Lender or Trustee to carry out
more effectively the purposes of this Deed of Trust.

         8.5 OBLIGATIONS OF BORROWER, JOINT AND SEVERAL. If more than one person
has executed this Deed of Trust as Borrower, the obligations of all such persons
hereunder shall be joint and several.

                                       31
<PAGE>

         8.6 SEVERABILITY. If any term of this Deed of Trust, or the application
thereof to any person or circumstances,  shall, to any extent, be invalid,  void
or  unenforceable,  the remainder of this Deed of Trust,  or the  application of
such  term to  persons  or  circumstances  other  than  those  as to which it is
invalid, void or unenforceable,  shall not be affected thereby, and each term of
this  Deed of  Trust  shall be  valid  and  enforceable  to the  fullest  extent
permitted  by law.  If the  lien  of this  Deed of  Trust  is  invalid,  void or
unenforceable  as to any  part of the  Secured  Obligations,  or if the  lien is
invalid,  void or unenforceable as to any part of the Collateral,  the unsecured
or partially secured portion of such indebtedness shall be completely paid prior
to the payment of the remaining and secured or partially secured portion of such
Secured Obligations,  and all payments made on such Secured Obligations shall be
considered  to have been first paid on and  applied to the full  payment of that
portion of such indebtedness that is not secured or fully secured by the lien of
this Deed of Trust.

         8.7 NO WAIVER OR CURE.  No waiver or delay or omission in the  exercise
or enforcement by Lender of any of its rights or remedies hereunder or under any
of the other  Loan  Documents  shall be  considered  a waiver of any  subsequent
application  of, or right to enforce,  such right or remedy,  or of the right to
enforce any other right or remedy of Lender in another instance. Furthermore, no
waiver of Lender's rights or remedies in one or more instances shall establish a
course of dealing or other  agreement  that will bind Lender or prohibit  Lender
from  enforcing  the terms of this Deed of Trust or any other Loan  Document  in
another instance.

         8.8  ADDITIONAL  SECURITY.  If  Lender  at any  time  holds  additional
security for any of the Secured  Obligations,  all such security shall be taken,
considered,  and held as cumulative,  and Lender may enforce the sale thereof or
otherwise  realize upon the same, at its option,  either before or  concurrently
with the exercise of any of its rights or remedies  hereunder or after a sale is
made  hereunder.  The taking of  additional  security,  the execution of partial
releases of the security, or any extension of the time of payment of the Secured
Obligations shall not diminish the force,  effect, or lien of this Deed of Trust
and shall not affect or impair the liability of any maker,  surety,  or endorser
for the payment of any such indebtedness.

         8.9 IMPOSITION OF TAX. For purposes of this Section,  "Tax" shall mean:
(a) a specific  tax on deeds of trust or on all or any part of the  indebtedness
secured by a deed of trust; or (b) a specific tax on the owner of the Collateral
covered by a deed of trust  which the  taxpayer  is  authorized  or  required to
deduct from payments on the deed of trust; or (c) a tax on property covered by a
deed of trust  chargeable  against a  beneficiary  or trustee  under the deed of
trust or the holder of the note secured by the deed of trust;  or (d) a specific
tax (other than an income tax or a gross  receipts tax) on all or any portion of
the obligations  secured hereby or on payments of principal and interest made by
a grantor under a deed of trust. If any Tax is enacted subsequent to the date of
this Deed of Trust,  enactment of the Tax shall  constitute an Event of Default,
and Lender may  exercise  any or all of the  remedies  available  to it upon the
occurrence of any Event of Default, unless the following conditions are met: (i)
Borrower  may  lawfully  pay the Tax  without  causing  any  resulting  economic
disadvantage or increase of tax to Lender or

                                       32
<PAGE>

Trustee;  and (ii) Borrower pays the Tax (including any tax on the payment made)
within  thirty  (30) days after  notice  from  Lender  that the tax law has been
enacted.

         8.10 NO OFFSET.  Borrower's  obligation  to timely pay and  perform all
obligations  under the Note,  this Deed of Trust,  and the other Loan  Documents
shall be absolute  and  unconditional  and shall not be affected by any event or
circumstance; including without limitation any setoff, counterclaim,  abatement,
suspension,  recoupment,  deduction, defense or any other right that Borrower or
any guarantor  may have or claim  against  Lender or any other person or entity.
The  foregoing  shall not  constitute  a waiver  of any  claim or  demand  which
Borrower or any guarantor may have in damages or otherwise against Lender or any
other person or entity;  provided that Borrower shall maintain a separate action
thereon.

         8.11  ACCOMMODATIONS  TO  SUCCESSORS.  The  liability  of the  original
Borrower  shall not be released  or changed if Lender  grants any  successor  in
interest to Borrower any extension of time for payment,  or  modification of the
terms of payment,  of any Secured  Obligation.  Lender  shall not be required to
comply with any demand by the original Borrower that Lender refuse to grant such
an extension  or  modification  to, or commence  proceedings  against,  any such
successor in interest.

         8.12  AMENDMENTS.  This  Deed  of  Trust  cannot  be  waived,  changed,
discharged or terminated  orally, but only by an instrument in writing signed by
the  party  against  whom  enforcement  of  any  waiver,  change,  discharge  or
termination is sought.

         8.13  SUCCESSORS IN INTEREST.  Subject to the  limitations  on transfer
contained in the Loan Documents,  the terms,  covenants,  and conditions  herein
contained shall be binding upon and inure to the benefit of the heirs, legatees,
devisees,  administrators,  executors,  successors  and  assigns of the  parties
hereto.

         8.14  MODIFICATION  AND  EXTENSIONS.  References to the Note,  the Loan
Agreement,  the Loan  Documents and the Related Loan  Documents in this document
shall be deemed to include all modifications, extensions, and renewals thereof.

         8.15  APPLICABLE  LAW.  THE  PROVISIONS  OF THIS DEED OF TRUST SHALL BE
GOVERNED BY AND CONSTRUED IN ACCORDANCE  WITH THE LAWS OF TEXAS,  WITHOUT REGARD
TO THE CHOICE OF LAW RULES OF TEXAS AND EXCEPT TO THE EXTENT THAT  FEDERAL  LAWS
PREEMPT THE LAWS OF TEXAS.

         8.16  JURISDICTION AND VENUE.  Each Borrower agrees that all actions or
proceedings  arising in  connection  with this Note shall be tried and litigated
only in the state and federal courts located in the City of Dallas,  Texas. Each
Borrower  hereby  waives any right he or it may have to assert the  doctrine  of
forum non  conveniens  or to object to venue to the  extent  any  proceeding  is
brought in accordance  with this Paragraph 15 and stipulates  that the state and
federal  courts  located in the City of  Dallas,  Texas  shall have in  personam
jurisdiction and venue over each Borrower for the purpose of litigating any such
dispute,  controversy  or proceeding  arising out of or related to this Note. To
the

                                       33
<PAGE>

extent permitted by law, service of process sufficient for personal jurisdiction
in any action against each Borrower may be made by registered or certified mail,
return  receipt  requested,  to the addresses  indicated in the Loan  Agreement.
Nothing herein shall limit the right of Lender to maintain a legal proceeding in
the state of Texas if it shall so elect.

         8.17 MERGER.  No merger  shall occur as a result of Lender's  acquiring
any other estate in or any other lien on the Collateral  unless Lender  consents
to a merger in writing.

         8.18 NOTICE. All notices required or permitted under the Loan Documents
shall be in writing,  effective  upon  delivery,  and shall be: (i) delivered in
person,  (ii) sent by recognized courier or overnight delivery service, or (iii)
sent by certified mail, postage prepaid,  with return receipt  requested,  (such
mailing to be deemed  received on the sooner of actual receipt or three (3) days
after  mailing) to the  appropriate  party at its address set forth  above.  Any
party may designate in writing  different  mailing addresses or persons to which
or to whom such  notices or demands are  thereafter  to be  addressed,  but such
change of address or change of party to be addressed  notices shall be effective
only upon actual receipt.

         8.19  WAIVER OF  MARSHALING.  Borrower  waives  all  rights,  legal and
equitable,  it may now or hereafter  have to require  marshaling of assets or to
require upon foreclosure  sales of assets in a particular  order. Each successor
and assign of Borrower,  including any holder of a lien subordinate to this Deed
of Trust, by acceptance of its interest or lien agrees that it shall be bound by
the above waiver, as if it had given the waiver itself.

         8.20 ENTIRE AGREEMENT.  THIS DEED OF TRUST AND THE OTHER LOAN DOCUMENTS
EMBODY THE FINAL,  ENTIRE  AGREEMENT  AMONG THE PARTIES HERETO AND SUPERSEDE ANY
AND ALL  PRIOR  COMMITMENTS,  AGREEMENTS,  REPRESENTATIONS  AND  UNDERSTANDINGS,
WHETHER  WRITTEN OR ORAL,  RELATING TO THE SUBJECT MATTER HEREOF AND THEREOF AND
MAY NOT BE  CONTRADICTED  OR VARIED BY  EVIDENCE OF PRIOR,  CONTEMPORANEOUS,  OR
SUBSEQUENT ORAL  AGREEMENTS OR DISCUSSIONS OF THE PARTIES  HERETO.  THERE ARE NO
ORAL AGREEMENTS AMONG THE PARTIES HERETO.

         8.21 NOTICE OF INDEMNIFICATION. BORROWER ACKNOWLEDGES THAT THIS DEED OF
TRUST PROVIDES FOR  INDEMNIFICATION  OF LENDER BY BORROWER  PURSUANT TO SECTIONS
4.6 and 5.11.3.  WITHOUT LIMITATION,  THE INDEMNITIES CONTAINED IN SAID SECTIONS
SHALL  APPLY TO LENDER  WITH  RESPECT TO  MATTERS  WHICH IN WHOLE OR IN PART ARE
CAUSED BY OR ARISE OUT OF THE NEGLIGENCE OF LENDER.  HOWEVER,  SUCH  INDEMNITIES
SHALL NOT APPLY TO LENDER TO THE EXTENT THAT THE SUBJECT OF THE  INDEMNIFICATION
IS CAUSED BY OR ARISES  OUT OF THE GROSS  NEGLIGENCE  OR WILLFUL  MISCONDUCT  OF
LENDER.

                                       34
<PAGE>

         IN WITNESS  WHEREOF,  Borrower has executed this  Construction  Deed of
Trust, Security Agreement, Assignment of Leases and Rents, and Fixture Filing as
the  Grantor/Trustor  hereunder,  and as a Debtor  under the Uniform  Commercial
Code, as of the date set forth above.

Grantor/Borrower:

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

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

         This  instrument  was  acknowledged  before me on April 4, 2006 by Mark
Potter, an individual.

(Seal)
                                                   /s/ Stephen W. McClain
                                                   -----------------------------
                                                   Notary Public, State of Texas

My Commission Expires: September 11, 2009

                                       35
<PAGE>

                                   EXHIBIT "A"

                                LEGAL DESCRIPTION

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

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

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

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

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

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

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00102-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00102-of-00352.parquet"}]]