Document:

COMMERCIAL GUARANTY

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Borrower:  WORLD WIDE STONE CORPORATION        Lender: BANK ONE, ARIZONA, NA
           5236 S 40TH STREET                          EAST VALLEY BBC
           PHOENIX, AZ 85040                           AZ1-0311
                                                       20 E UNIVERSITY, STE 308
                                                       TEMPE, AZ 85281
Guarantor: FRANK CUNNINGHAM
           5236 S 49TH STREET
           PHOENIX, AZ 85040

CONTINUING  UNLIMITED  GUARANTY.  FOR GOOD  AND  VALUABLE  CONSIDERATION,  FRANK
CUNNINGHAM ("GUARANTOR") ABSOLUTELY AND UNCONDITIONALLY  GUARANTEES AND PROMISES
TO PAY TO BANK ONE, ARIZONA,  NA ("LENDER") OR ITS ORDER, IN LEGAL TENDER OF THE
UNITED STATES OF AMERICA,  THE  INDEBTEDNESS  (AS THAT TERM IS DEFINED BELOW) OF
WORLD WIDE STONE CORPORATION  ("BORROWER") TO LENDER ON THE TERMS AND CONDITIONS
SET FORTH IN THIS GUARANTY.  UNDER THIS GUARANTY,  THE LIABILITY OF GUARANTOR IS
UNLIMITED AND THE OBLIGATIONS OF GUARANTOR ARE CONTINUING.

DEFINITIONS.  The following words shall have the following meanings when used in
this Guaranty:

     BORROWER. The word "Borrower" means WORLD WIDE STONE CORPORATION.

     GUARANTOR. The word "Guarantor" means FRANK CUNNINGHAM.

     GUARANTY. The word "Guaranty" means this Guaranty made by Guarantor for the
     benefit of Lender dated August 13, 1999.

     INDEBTEDNESS.  The word  "Indebtedness"  means and  includes any and all of
     Borrower's liabilities, obligations, debts, and indebtedness to Lender, now
     existing or HEREINAFTER incurred or created, including, without limitation,
     all loans, advances, interest, costs, debts, overdraft indebtedness, credit
     card indebtedness, lease obligations, other obligations, and liabilities of
     Borrower, or any of them, any present or future judgments against Borrower,
     or any of them, and all renewals, extensions, modifications,  substitutions
     and  rearrangements of the foregoing;  and whether any such Indebtedness is
     voluntarily  or  involuntarily  incurred,  due  or  not  due,  absolute  or
     contingent, direct or indirect,  liquidated or unliquidated,  determined or
     undetermined;  whether Borrower may be liable  individually or jointly with
     others, or primarily or secondarily,  or as debtor, maker, comaker, drawer,
     endorser,  guarantor or surety;  whether such Indebtedness  arises by note,
     draft, acceptance,  guaranty,  endorsement,  letter of credit,  assignment,
     overdraft,  indemnity  agreement  or  otherwise;  whether  recovery  on the
     Indebtedness may be or may become barred or unenforceable  against Borrower
     for any  reason  whatsoever;  and  whether  the  Indebtedness  arises  from
     transactions which may be voidable on account of infancy,  insanity,  ultra
     vires, or otherwise.

     LENDER.  The word "Lender" means BANK ONE, ARIZONA,  NA, its successors and
     assigns.

     RELATED DOCUMENTS.  The words "Related  Documents" mean and include without
     limitation  all  promissory  notes,  credit  agreements,  loan  agreements,
     environmental agreements, guaranties, security agreements, mortgages, deeds
     of trust, and all other instruments,  agreements and documents, whether now
     or hereafter existing, executed in connection with the Indebtedness.

NATURE  OF  GUARANTY.  This is a  guaranty  of  payment  and not of  collection.
Guarantor's  liability  under this Guaranty  shall be open and continuous for so
long as this Guaranty  remains in force.  Guarantor  intends to guarantee at all
times the  performance  and prompt  payment  when due,  whether at  maturity  or
earlier  by  reason  of   acceleration  or  otherwise,   of  all   Indebtedness.
Accordingly,  no payments made upon the Indebtedness  will discharge or diminish
the continuing  liability of Guarantor in connection with any remaining portions
of the Indebtedness or any of the Indebtedness which  subsequently  arises or is
thereafter  incurred or  contracted.  Any married person who signs this Guaranty
hereby  expressly  agrees that recourse  under this agreement may be had against
both his or her separate property and community  property,  whether now owned or
hereafter acquired.

DURATION OF GUARANTY.  This  Guaranty  will take effect when  received by Lender
without the necessity of any acceptance by Lender, or any notice to Guarantor or
to Borrower,  and will continue in full force until all Indebtedness incurred or
contracted  before receipt by Lender of any notice of revocation shall have been
fully and finally  paid and  satisfied  and all other  obligations  of Guarantor
under this Guaranty  shall have been  performed in full. If Guarantor  elects to
revoke this Guaranty,  Guarantor may only do so in writing.  Guarantor's written
notice of revocation must be delivered to Lender at the address of Lender listed
above or such other place as Lender may designate in writing.  This Guaranty may
be revoked only with respect to Indebtedness incurred or contracted by Borrower,
or acquired or committed to by Lender after the date on which written  notice of
revocation is actually  received by Lender. No notice of revocation hereof shall
be effective as to any Indebtedness: (a) existing at the date of receipt of such
notice;  (b) incurred or contracted by Borrower,  or acquired or committed to by
Lender,  prior to receipt of such notice;  (c) now existing or hereafter created
pursuant to or evidenced by a loan agreement or commitment in existence prior to
receipt of such  notice  under  which  Borrower  is or may become  obligated  to
Lender;  or  (d)  renewals,  extensions,   consolidations,   substitutions,  and
refinancings of the foregoing.  Guarantor  waives notice of revocation  given by
any other  guarantor of the  Indebtedness.  If Guarantor is an individual,  this
Guaranty  shall bind the estate of  Guarantor  as to  Indebtedness  created both
before and after the death or incapacity  of  Guarantor,  regardless of Lender's
actual notice of  Guarantor's  death or  incapacity.  Subject to the  foregoing,
Guarantor's   executor  or  administrator  or  other  legal  representative  may
terminate  this  Guaranty  in the same  manner  in which  Guarantor  might  have
terminated it and with the same effect.  Guarantor shall be liable,  jointly and
severally,  with  Borrower  and any  other  guarantor  of all or any part of the
Indebtedness  and  release  of  any  other  guarantor  of the  Indebtedness,  or
termination or revocation of any other guaranty of the  Indebtedness,  shall not
affect the liability of Guarantor  under this Guaranty.  IT IS ANTICIPATED  THAT
FLUCTUATIONS MAY OCCUR IN THE AGGREGATE  AMOUNT OF INDEBTEDNESS  COVERED BY THIS
GUARANTY,  AND IT IS  SPECIFICALLY  ACKNOWLEDGED  AND AGREED BY  GUARANTOR  THAT
REDUCTIONS IN THE AMOUNT OF INDEBTEDNESS,  EVEN TO ZERO DOLLARS  ($0.00),  SHALL
NOT CONSTITUTE A TERMINATION OF THIS GUARANTY.

GUARANTOR'S  AUTHORIZATION TO LENDER. Guarantor authorizes Lender, either before
or after any revocation  hereof,  WITHOUT NOTICE OR DEMAND AND WITHOUT LESSENING
GUARANTOR'S LIABILITY UNDER THIS GUARANTY, FROM TIME TO TIME: (A) TO MAKE ONE OR
MORE ADDITIONAL  SECURED OR UNSECURED  LOANS TO BORROWER,  TO LEASE EQUIPMENT OR
OTHER GOODS TO BORROWER,  OR OTHERWISE TO EXTEND  ADDITIONAL CREDIT TO BORROWER;
(B) TO ALTER, COMPROMISE,  RENEW, EXTEND, ACCELERATE, OR OTHERWISE CHANGE ONE OR
MORE TIMES THE TIME FOR PAYMENT OR OTHER TERMS OF THE  INDEBTEDNESS  OR ANY PART
OF THE INDEBTEDNESS,  INCLUDING  INCREASES AND DECREASES OF THE RATE OF INTEREST
ON THE  INDEBTEDNESS;  EXTENSIONS MAY BE REPEATED AND MAY BE FOR LONGER THAN THE
ORIGINAL  LOAN  TERM;  (C) TO TAKE AND HOLD  SECURITY  FOR THE  PAYMENT  OF THIS
GUARANTY OR THE INDEBTEDNESS,  AND EXCHANGE,  ENFORCE, WAIVE, FAIL OR DECIDE NOT
TO PERFECT,  AND RELEASE ANY SUCH SECURITY,  WITH OR WITHOUT THE SUBSTITUTION OF
NEW COLLATERAL; (D) TO RELEASE,  SUBSTITUTE,  AGREE NOT TO SUE, OR DEAL WITH ANY
ONE OR MORE OF BORROWER'S SURETIES,  ENDORSERS, OR OTHER GUARANTORS ON ANY TERMS
OR IN ANY  MANNER  LENDER  MAY  CHOOSE;  (E) TO  DETERMINE  HOW,  WHEN  AND WHAT
APPLICATION  OF PAYMENTS AND CREDITS SHALL BE MADE ON THE  INDEBTEDNESS;  (F) TO
APPLY  ANY  PROCEEDS  IT  RECEIVES  AS A  RESULT  OF THE  FORECLOSURE  OR  OTHER
REALIZATION ON ANY COLLATERAL FOR THE  INDEBTEDNESS TO THAT PORTION,  IF ANY, OF
THE INDEBTEDNESS NOT GUARANTEED  HEREUNDER OR TO ANY OTHER INDEBTEDNESS  SECURED
BY SUCH  COLLATERAL,  AS LENDER IN ITS DISCRETION  MAY  DETERMINE;  (G) TO SELL,
TRANSFER,   ASSIGN,  OR  GRANT   PARTICIPATIONS  IN  ALL  OR  ANY  PART  OF  THE
INDEBTEDNESS; AND (H) TO ASSIGN OR TRANSFER THIS GUARANTY IN WHOLE OR IN PART.

GUARANTOR'S  REPRESENTATIONS,  WARRANTIES, AND COVENANTS.  Guarantor represents,
warrants and  covenants to Lender that (a) no  representations  or agreements of
any kind have been made to Guarantor which would limit or qualify in any way the
terms of this Guaranty;  (b) this Guaranty is executed at Borrower's request and
not at the request of Lender;  (c) Guarantor has full power, right and authority
to enter  into  this  Guaranty;  (d)  the  provisions  of this  Guaranty  do not
conflict  with or result in a default  under any  agreement or other  instrument
binding upon Guarantor and do not result in a violation of any law,  regulation,
court decree or order  applicable to  Guarantor;  (e) Guarantor has not and will
not, without the prior written consent of Lender, sell, lease, assign, encumber,
hypothecate,  transfer,  or  otherwise  dispose of all or  substantially  all of
Guarantor's   assets,  or  any  interest   therein;   (f)  Lender  has  made  no
representation  to  Guarantor  as  to  the  creditworthiness  of  Borrower;  (g)
Guarantor  will  provide  to Lender  financial  statements  and other  financial
information regarding Guarantor as Lender may request from time to time, in form
and detail acceptable to Lender, and all such financial  information  heretofore
and  hereafter  provided  to  Lender is  and  shall be true and  correct  in all
material respects and fairly presents the financial condition of Guarantor as of
the dates thereof,  and no material adverse change has occurred in the financial
condition of Guarantor since the date of the most current  financial  statements
provided  to Lender;  (h)  Guarantor  is  familiar  with the  current  financial
condition  of Borrower and has  established  adequate  means of  obtaining  from
Borrower on a continuing basis information regarding Borrower's future financial
condition and is not relying on Lender to provide such information to Guarantor;
(i) as of the date  hereof,  and  after  giving  effect  to this  Guaranty,  (1)
Guarantor is and will be solvent,  (2) the fair  saleable  value of  Guarantor's
assets exceeds and will continue to exceed  Guarantor's  liabilities (both fixed
and  contingent),  (3)  Guarantor  is  and  will  continue  to be  able  to  pay
Guarantor's  debts as they mature,  and (4) if  Guarantor is not an  individual,
Guarantor  has and will  continue  to have  sufficient  capital  to carry on its
business and all  businesses  in which it is about to engage;  and (j) Guarantor
has the power and  authority to execute,  deliver and perform this  Guaranty and
the other  Related  Documents  executed by Guarantor.  Guarantor  agrees to keep
adequately informed from such means of any facts, events, or circumstances which
might in any way affect  Guarantor's  risks under this  Guaranty,  and Guarantor
further agrees that Lender shall have no obligation to disclose to Guarantor any
information or documents  acquired by Lender in the course  of its  relationship
with Borrower.

GUARANTOR'S  WAIVERS.  Guarantor  waives  any  right to  require  Lender  (a) to
continue lending money or to extend other credit to Borrower;
<PAGE>
08-13-1999                   COMMERCIAL GUARANTY                          Page 2
Loan No                          (Continued)

(b) to make any presentment,  protest,  demand, or notice of any kind, including
notice of any nonpayment of the Indebtedness or of any nonpayment related to any
collateral,  or  notice  of any  action or  nonaction  on the part of  Borrower,
Lender,  any  surety,  endorser,  or  other  guarantor  in  connection  with the
Indebtedness  or in connection  with the creation of new or additional  loans or
obligations; (c) to notify Guarantor of any change in the manner, place, time or
terms of payment of any of the Indebtedness (including,  without limitation, any
renewal, extension or other modification of any of the Indebtedness);  or (d) to
notify  Guarantor  of any change in the  interest  rate  accruing  on any of the
Indebtedness  (including,  without  limitation,  any  periodic  change  in  such
interest  rate that  occurs  because  such  Indebtedness  accrues  interest at a
variable  rate which may  fluctuate  from time to time).  Should  Lender seek to
enforce the obligations of Guarantor  hereunder,  Guarantor  waives any right to
require Lender to first (a) resort for payment or to proceed directly or at once
against  any  person,   including   Borrower  or  any  other  guarantor  of  the
Indebtedness; (b) to proceed directly against, marshall, enforce, or exhaust any
collateral held by Lender from Borrower,  Guarantor, any other guarantor, or any
other person; or (c) to pursue any other remedy within Lender's power.

Guarantor  also waives any and all rights or  defenses  arising by reason of (a)
any election of remedies by Lender which destroys or otherwise adversely affects
Guarantor's subrogation rights or Guarantor's rights to proceed against Borrower
for reimbursement,  including without  limitation,  any loss of rights Guarantor
may  suffer  by reason  of any law  limiting,  qualifying,  or  discharging  the
Indebtedness;  (b) any  disability  or other  defense of Borrower,  of any other
guarantor,  or of any other person,  or by reason of the cessation of Borrower's
liability from any cause whatsoever, other than payment in full in legal tender,
of the Indebtedness; (c) any right to claim discharge of the Indebtedness on the
basis of unjustified  impairment of any collateral for the Indebtedness;  or (d)
any defenses  given to guarantors at law or in equity other than actual  payment
and  performance  of  the  Indebtedness.  This  Guaranty  shall  continue  to be
effective  or be  reinstated,  as the case may be, if at any time any payment of
all or any part of the  Indebtedness  is rescinded or must otherwise be returned
by  Lender  upon the  insolvency,  bankruptcy  or  reorganization  of  Borrower,
Guarantor,  any  other  guarantor  of all or any  part of the  Indebtedness,  or
otherwise, all as though such payment had not been made.

Guarantor  further  waives  and  agrees  not to  assert or claim at any time any
deductions to the amount guaranteed under this Guaranty for any claim of setoff,
counterclaim,  counter demand,  recoupment or similar right, whether such claim,
demand or right may be asserted by the Borrower, the Guarantor, or both.

GUARANTOR'S UNDERSTANDING WITH RESPECT TO WAIVERS. Guarantor warrants and agrees
that each of the waivers set forth above is made with Guarantor's full knowledge
of its significance and  consequences  and that,  under the  circumstances,  the
waivers are  reasonable  and not  contrary to public  policy or law. If any such
waiver is determined to be contrary to any applicable law or public policy, such
waiver shall be effective only to the extent permitted by law or public policy.

LENDER'S  RIGHT OF  SETOFF.  Unless a lien would be  prohibited  by law or would
render  a  nontaxable   account  taxable,   Guarantor  hereby  grants  Lender  a
contractual security interest in and hereby assigns, conveys,  delivers, pledges
and  transfers  all  of  Guarantor's  right,  title,  and  interest  in  and  to
Guarantor's  accounts  with  Lender  (whether  checking,  savings,  or any other
account), including all accounts held jointly with someone else and all accounts
Guarantor may open in the future.  Guarantor  authorizes  Lender,  to the extent
permitted by applicable  law, to charge or setoff all  Indebtedness  against any
and all such accounts.

ACTIONS  AGAINST  AND  PAYMENTS BY  GUARANTOR.  In the event of a default in the
payment  or  performance  of all or any  part  of  the  Indebtedness  when  such
Indebtedness  becomes due,  whether by its terms,  by acceleration or otherwise,
Guarantor shall,  without notice or demand,  promptly pay the amount due thereon
by Guarantor to Lender,  in lawful money of the United  States.  The exercise by
Lender of any right or remedy under this  Guaranty or under any other  agreement
or instrument, at law, in equity or otherwise,  shall not preclude concurrent or
subsequent  exercise of any other right or remedy.  Whenever  Guarantor pays any
sum which is or may become  due under  this  Guaranty,  written  notice  must be
delivered to Lender  contemporaneously with such payment. In the absence of such
notice to Lender by  Guarantor,  any sum  received  by Lender on  account of the
Indebtedness shall be conclusively deemed paid by Borrower.

MISCELLANEOUS PROVISIONS.

     AMENDMENTS. This Guaranty, together with any Related Documents, constitutes
     the entire understanding and agreement of the parties as to the matters set
     forth in this Guaranty and supercedes all prior written and oral agreements
     and  understandings,  if any, regarding same. No alteration of or amendment
     to this Guaranty  shall be effective  unless given in writing and signed by
     the party or parties  sought to be charged  or bound by the  alteration  or
     amendment.

     APPLICABLE  LAW. This Guaranty has been delivered to Lender and accepted by
     Lender in the State of Arizona.  Subject to the provisions on  arbitration,
     this Guaranty  shall be governed by and  construed in  accordance  with the
     laws of the State of  Arizona  without  regard to any  conflict  of laws or
     provisions thereof.

     JURY WAIVER.  THE UNDERSIGNED AND LENDER (BY ITS ACCEPTANCE  HEREOF) HEREBY
     VOLUNTARILY,  KNOWINGLY, IRREVOCABLY AND UNCONDITIONALLY WAIVE ANY RIGHT TO
     HAVE A JURY  PARTICIPATE  IN  RESOLVING  ANY  DISPUTE  (WHETHER  BASED UPON
     CONTRACT,  TORT OR OTHERWISE)  BETWEEN OR AMONG THE  UNDERSIGNED AND LENDER
     ARISING  OUT OF OR IN ANY WAY  RELATED  TO  THIS  DOCUMENT,  AND ANY  OTHER
     RELATED DOCUMENT, OR ANY RELATIONSHIP BETWEEN LENDER AND THE BORROWER. THIS
     PROVISION  IS A  MATERIAL  INDUCEMENT  TO LENDER TO PROVIDE  THE  FINANCING
     DESCRIBED HEREIN OR IN THE OTHER RELATED DOCUMENTS.

     ARBITRATION.  Lender and  Guarantor  agree that upon the written  demand of
     either  party,  whether made before or after the  institution  of any legal
     proceedings, but prior to the rendering of any judgment in that proceeding,
     all disputes,  claims and controversies  between them, whether  individual,
     joint, or class in nature, arising from this Guaranty, any Related Document
     or  otherwise,  including  without  limitation  contract  disputes and tort
     claims, shall be resolved by binding arbitration pursuant to the Commercial
     Rules of the American  Arbitration  Association  ("AAA").  Any  arbitration
     proceeding held pursuant to this  arbitration  provision shall be conducted
     in the city nearest the Borrower's  address having an AAA regional  office,
     or at any other place selected by mutual  agreement of the parties.  No act
     to take or  dispose of any  collateral  shall  constitute  a waiver of this
     arbitration agreement or be prohibited by this arbitration agreement.  This
     arbitration  provision shall not limit the right of either party during any
     dispute,  claim or  controversy  to seek,  use,  and employ  ancillary,  or
     preliminary rights and/or remedies, judicial or otherwise, for the purposes
     of realizing upon, preserving,  protecting,  foreclosing upon or proceeding
     under  forcible  entry and detainer for possession of, any real or personal
     property,  and any such action shall not be deemed an election of remedies.
     Such remedies include, without limitation, obtaining injunctive relief or a
     temporary  restraining  order,  invoking  a power of sale under any deed of
     trust or  mortgage,  obtaining  a writ of  attachment  or  imposition  of a
     receivership,  or  exercising  any rights  relating to  personal  property,
     including  exercising the right of set-off,  or taking or disposing of such
     property  with  or  without   judicial  process  pursuant  to  the  Uniform
     Commercial  Code. Any disputes,  claims,  or  controversies  concerning the
     lawfulness or reasonableness of an act, or exercise of any right or remedy,
     concerning  any  collateral,  including  any claim to rescind,  reform,  or
     otherwise  modify any agreement  relating to the collateral,  shall also be
     arbitrated;  provided,  however that no arbitrator  shall have the right or
     the power to enjoin or restrain any act of either party.  Judgment upon any
     award  rendered  by any  arbitrator  may be  entered  in any  court  having
     jurisdiction.  The statute of  limitations,  estoppel,  waiver,  laches and
     similar  doctrines which would otherwise be applicable in an action brought
     by a party  shall be  applicable  in any  arbitration  proceeding,  and the
     commencement of an arbitration  proceeding shall be deemed the commencement
     of any action for these purposes.  The Federal  Arbitration Act (Title 9 of
     the United  States Code) shall apply to the  construction,  interpretation,
     and enforcement of this arbitration provision.

     COSTS AND EXPENSES.  Guarantor shall also pay on demand by Lender all costs
     and expenses,  including,  without  limitation,  all reasonable  attorneys'
     fees,  incurred  by  Lender  in  connection  with  the  enforcement  and/or
     collection  of this  Guaranty  and with the  collection  and/or sale of any
     collateral securing this Guaranty. This convenant shall survive the payment
     of the Indebtedness.

     NOTICES.  All  notices  required  to be given by either  party to the other
     under this Guaranty shall be in writing and except for  revocation  notices
     by Guarantor,  shall be effective when actually delivered or when deposited
     with a nationally  recognized  overnight courier,  or when deposited in the
     United States mail, first class postage prepaid,  addressed to the party to
     whom the notice is to be given at the address  shown above or to such other
     addresses  as either  party may  designate  to the  other in  writing.  All
     revocation  notices by Guarantor shall be in writing and shall be effective
     only upon  delivery  to  Lender as  provided  above in the  section  titled
     "DURATION  OF  GUARANTY."  For notice  purposes,  Guarantor  agrees to keep
     Lender informed at all times of Guarantor's  current address.  In the event
     that  Guarantor  is  entitled  to  receive  any  notice  under the  Uniform
     Commercial  Code, as it exists in the state  governing any such notice,  of
     the sale or other disposition of any collateral securing all or any part of
     the Indebtedness or this Guaranty,  reasonable notice shall be deemed given
     when such notice is given pursuant to the terms of this Subsection ten (10)
     days prior to the date any public sale, or after which any private sale, of
     any such collateral is to be held.

     INTERPRETATION.  In all cases where there is more than one  Borrower,  then
     all words used in this  Guaranty  in the  singular  shall be deemed to have
     been used in the plural where the context and construction so require;  and
     where  there is more than one  Borrower  named in this  Guaranty,  the word
     "Borrower" shall mean all and any one or more of them. This Guaranty is for
     the benefit of Lender, its successors and assigns. This Guaranty is binding
     upon Guarantor and Guarantors's heirs, executors, administrators,  personal
     representatives and successors. Caption headings in  this Guaranty  are for
     convenience purposes only and are not to be used to interpret or define the
     provisions of this Guaranty. If a court of competent jurisdiction finds any
     provision of this Guaranty to be invalid or  unenforceable as to any person
     or  circumstance,  such finding shall not render that provision  invalid or
     unenforceable as to any other persons or circumstances,  and all provisions
     of this Guaranty in all other respects shall remain valid and  enforceable.
     If  any  one  or  more  of  Borrower  or  Guarantor  are   corporations  or
     partnerships,  it is not necessary for Lender to inquire into the powers of
     Borrower or Guarantor or of the officers, directors,
<PAGE>
08-13-1999                      COMMERCIAL GUARANTY                       PAGE 3
LOAN NO                            (CONTINUED)

partners,  or  agents  acting  or  purporting  to act on their  behalf,  and any
Indebtedness  made or created in reliance  upon the  professed  exercise of such
powers shall be guaranteed under this Guaranty.

WAIVER. Lender shall not be deemed to have waived any rights under this Guaranty
unless such  waiver is given in writing  and signed by Lender,  and then only in
the  specific  instance and for the purpose  given.  No delay or omission on the
part of Lender in  exercising  any right shall operate as a waiver of such right
or any other right. A waiver by Lender of a provision of this Guaranty shall not
prejudice or constitute a waiver of Lender's  right to thereafter  demand strict
compliance with that provision or any other provision of this Guaranty. No prior
waiver by Lender, nor any course of dealing between Lender and Guarantor,  shall
constitute  a  waiver  of  any of  Lender's  rights  or of  any  of  Guarantor's
obligations  as to any future  transactions.  Whenever  the consent of Lender is
required  under this  Guaranty,  the  granting of such  consent by Lender in any
instance shall not constitute  continuing consent to subsequent  instances where
such  consent  is  required  and in all cases  such  consent  may be  granted or
withheld in the sole discretion of Lender.

ANNUAL  TAX  RETURNS  OF  GUARANTOR.  So  long as this  Guaranty  is in  effect,
Guarantor  shall provide  Lender,  within ninety (90) days of the filing thereof
each year,  a true and  complete  copy of  his/her  Federal  Income Tax  return,
including all exhibits and schedules attached and being signed and dated.

ANNUAL FINANCIAL STATEMENTS OF GUARANTOR. So long as this Guaranty is in effect,
Guarantor  shall provide  Lender,  on or before  October 19th,  each year within
ninety (90) days, a financial statement, said financial statements to be in form
and with such detail as reasonably acceptable to Lender.

EACH UNDERSIGNED  GUARANTOR  ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS
GUARANTY AND AGREES TO ITS TERMS. IN ADDITION,  EACH GUARANTOR  UNDERSTANDS THAT
THIS  GUARANTY IS  EFFECTIVE  UPON  GUARANTOR'S  EXECUTION  AND DELIVERY OF THIS
GUARANTY TO LENDER AND THAT THE GUARANTY WILL CONTINUE  UNTIL  TERMINATED IN THE
MANNER  SET  FORTH IN THE  SECTION  TITLED  "DURATION  OF  GUARANTY".  NO FORMAL
ACCEPTANCE BY LENDER IS NECESSARY TO MAKE THIS GUARANTY EFFECTIVE. THIS GUARANTY
IS DATED AUGUST 13, 1999.

GUARANTOR:

X /s/ Frank Cunningham
  ------------------------------

================================================================================October 28, 1999

VIA FACSIMILE AND HAND DELIVERY

Sedona Worldwide Incorporated
3840 North 16th Street
Phoenix, Arizona 85016

RE:  LINE OF CREDIT

Dear Board of Directors:

ILX Resorts Incorporated ("ILX") is pleased to grant to Sedona Worldwide
Incorporated ("SWW/Borrower") an operating line of credit ("Line") for general
working capital purposes and other related uses. The amount, terms and
conditions of the Line are set forth below.

A. DETAILS OF LINE OF CREDIT

1.   BORROWER. Sedona Worldwide Incorporated.

2.   COMMITMENT AMOUNT. The Commitment Amount will be $200,000.

3.   BORROWING PERIOD. The Borrowing Period shall extend from the "Closing Date"
     until November 30, 2000.

4.   MATURITY DATE. December 31, 2000.

5.   PAYMENT SCHEDULE. Interest on the line shall be paid monthly in arrears.
     Principal shall be payable on December 31, 2000.

6.   INTEREST RATE. Interest on the Line will be based on the outstanding
     principal balance, at a variable rate per annum equal to the prime rate, as
     published in the Wall Street Journal, PLUS three percent (3.0%), provided,
     however, that at no time shall the Interest Rate fall below eleven percent
     (11.0%).
<PAGE>
Sedona Worldwide Incorporated
October 28, 1999
Page 2

B. CONDITIONS

ILX's obligation to fund the Line will be contingent upon the following:

1.   Borrower will be required to execute and deliver to ILX such instruments,
documents, certificates, opinions and assurances as ILX might request in
     connection with funding the Line on the basis outlined above. The
     documentation for the Line shall be evidenced by a Promissory Note and such
     other legal documents as ILX may reasonably request.

2.   Borrower will provide ILX with a request for an advance on the Line a
     minimum of three (3) business days prior to the date of each requested
     funding.

3.   Borrower will not be permitted to obtain any additional loans or financing
     without ILX's prior written approval.

4.   ILX will have the right to make periodic audits of Borrower's books and
     records at Borrower's expense with appropriate notice.

5.   There can be no material adverse change in Borrower's financial or other
     conditions subsequent to the "Closing Date".

C. CLOSING DATE

The initial funding on the Line shall be an advance of no less than $20,000 and
shall take place on such date as will be satisfactory to Borrower and to ILX
("Closing Date") but in no event more than thirty (30) days following the date
of this commitment.

Sincerely,                                   Agreed to and Accepted by:

ILX RESORTS INCORPORATED                     SEDONA WORLDWIDE INCORPORATED

/s/ Nancy J. Stone                           By: /s/ Mia A. Martori
------------------------------------             -------------------------------
Nancy J. Stone, President
                                             Title: President
                                                   -----------------------------

                                             Date: October 28, 1999
                                                   -----------------------------

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