Document:

EXHIBIT 10.15

RECORDING REQUESTED BY

WHEN RECORDED MAIL TO

Arter & Hadden LLP
Attn: Bruce G. Holden
5 Park Plaza, Suite 1000
Irvine, CA 92614-8528

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             DEED OF TRUST, SECURITY AGREEMENT, FINANCING STATEMENT
                   AND FIXTURE FILING WITH ASSIGNMENT OF RENTS

ATTENTION:  COUNTY RECORDER -- THIS  INSTRUMENT  COVERS GOODS THAT ARE OR ARE TO
BECOME  FIXTURES ON THE REAL  PROPERTY  DESCRIBED  HEREIN AND IS TO BE FILED FOR
RECORD  IN THE  RECORDS  WHERE  DEEDS  OF  TRUST ON REAL  ESTATE  ARE  RECORDED.
ADDITIONALLY,  AS A DEED OF TRUST,  BUT ALSO AS A FINANCING  STATEMENT  COVERING
GOODS THAT ARE OR ARE TO BECOME FIXTURES ON THE REAL PROPERTY  DESCRIBED HEREIN.
THE MAILING  ADDRESSES OF THE TRUSTOR AND  BENEFICIARY  ARE SET FORTH IN SECTION
4.5 OF THIS DEED OF TRUST.

     This Deed of Trust,  Security  Agreement,  Financing  Statement and Fixture
Filing  With  Assignment  of  Rents  (this  "Deed  of  Trust")  is  made  as  of
_______________,  2000 by CAN CAL RESOURCES LIMITED  ("Trustor"),  CHICAGO TITLE
INSURANCE  COMPANY  ("Trustee"),  whose address is 700 S. Flower St., Suite 900,
Los Angeles, California 90017, and FIRST COLONY MERCHANT ("Beneficiary").

     This Deed of Trust is given, inter alia, for the purpose of securing a Loan
Agreement executed by Trustor in favor of Beneficiary (the "Loan Agreement").

     FOR GOOD AND VALUABLE  CONSIDERATION,  including  the  indebtedness  herein
recited  and  the  trust  herein  created,   the  receipt  of  which  is  hereby
acknowledged,  Trustor hereby irrevocably grants, transfers, conveys and assigns
to  Trustee,  IN TRUST,  WITH POWER OF SALE,  for the  benefit  and  security of
Beneficiary,  under and  subject  to the terms and  conditions  hereinafter  set
forth,  the real  property  more  particularly  described  in Exhibit A attached
hereto (the "Premises").

     TOGETHER  WITH any and all  buildings  and  improvements  now or  hereafter
erected on the Premises including, but not limited to the fixtures, attachments,
appliances,  equipment, machinery, and other articles attached to said buildings
and  improvements  (the  "Improvements"),  all of  which  shall  be  deemed  and
construed to be a part of the realty;

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     TOGETHER  WITH all  rents,  issues,  profits,  royalties,  income and other
benefits (collectively,  the "Rents") derived from any lease, sublease, license,
franchise,  concession or other  agreement  (collectively,  the "Leases") now or
hereafter  affecting all or any portion of the Premises and the  Improvements or
the use or occupancy thereof;

     TOGETHER WITH all  interests,  estates or other claims,  both in law and in
equity,  which Trustor now has or may  hereafter  acquire in the Premises or the
Improvements;

     TOGETHER  WITH  all  easements,  rights-of-way  and  rights  now  owned  or
hereafter  acquired by Trustor  used in  connection  therewith  or as a means of
access thereto, including, without limiting the generality of the foregoing, all
rights pursuant to any trackage agreement and all rights to the nonexclusive use
of common drive entries,  and all  tenements,  hereditaments  and  appurtenances
thereof  and  thereto,  and all  water  and  water  rights  and  shares of stock
evidencing the same;

     TOGETHER WITH all leasehold estate, right, title and interest of Trustor in
and to all Leases covering the Premises, the Improvements or any portion thereof
now or hereafter  existing or entered into, and all right, title and interest of
Trustor thereunder including, without limitation, all cash or security deposits,
advance rentals, and deposits or payments of similar nature;

     TOGETHER WITH all right, title and interest now owned or hereafter acquired
by Trustor in and to any greater estate in the Premises or the Improvements;

     TOGETHER,  with any and all of  Trustor's  interest in any and all tangible
personal  property owned by Trustor now or any time hereafter located on or used
in any way in connection with the use, enjoyment,  occupancy or operation of the
Premises or the Improvements or any portion thereof,  including, but not limited
to, all goods, machinery,  tools, equipment (including fire sprinklers and alarm
systems,  air  conditioning,   heating,   boilers,   refrigerating,   electronic
monitoring,  water, lighting, power, sanitation,  waste removal,  entertainment,
recreational,  window or structural  cleaning  rigs,  maintenance  and all other
equipment  of every  kind),  lobby and all other  indoor  or  outdoor  furniture
(including  tables,  chairs,  planters,   desks,  sofas,  shelves,  lockers  and
cabinets),  furnishings,  appliances,  inventory,  rugs, carpets and other floor
coverings,  draperies,  drapery rods and  brackets,  awnings,  venetian  blinds,
partitions,  chandeliers  and other lighting  fixtures,  and all other fixtures,
apparatus, equipment, furniture, furnishings, and articles located on or used in
any way in  connection  with the use,  enjoyment,  occupancy or operation of the
Premises or the  Improvements or any portion  thereof,  it being understood that
the  enumeration of any specific  articles of property shall in nowise result in
or be held to exclude any items of property not specifically mentioned;

     TOGETHER  WITH all  right,  title and  interest  of  Trustor,  now owned or
hereafter  acquired,  in and to any land lying  within the  right-of-way  of any
street,  open or proposed,  adjoining  the  Premises,  and any and all sidewalk,
alleys and strips and gores of land adjacent to or used in  connection  with the
Premises;

     TOGETHER  WITH all the  estate,  interest,  right,  title,  other  claim or
demand,  both in law and in equity,  including claims or demands with respect to
the proceeds of insurance in effect with respect thereto,  which Trustor now has
or may hereafter  acquire in the Premises or the  Improvements,  and any and all
awards made for the taking by eminent domain, or by any proceeding

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or purchase in lieu  thereof,  of the whole or any part of the Trust  Estate (as
hereinafter defined), including, without limitation, any awards resulting from a
change of grade of streets and awards for severance damages.

       TOGETHER WITH all collections, proceeds and products of any of the
foregoing.

     The entire  estate,  property and interest  hereby  conveyed to Trustee may
hereafter be collectively referred to as the "Trust Estate".

     FOR THE PURPOSE OF SECURING:

     (a) the Loan Agreement in the original principal amount of $300,000 and any
and all modifications, extensions, renewals and replacements thereof are by this
reference hereby made a part hereof;

     (b)  payment of all sums  advanced  by  Beneficiary  to  protect  the Trust
Estate,  with  interest  thereon  from  the date of the  advance  at the rate of
interest  as set  forth  in the  Loan  Agreement  (which  rate  of  interest  is
hereinafter referred to as the "Agreed Rate");

     (c) payment of all other sums, with interest  thereon,  which may hereafter
be subject to the Loan Agreement;

     (d) payment of all other sums,  with  interest  thereon,  becoming  due and
payable under the provisions of the Loan Agreement;

     (e)  performance  of every  obligation,  covenant or  agreement  of Trustor
contained herein and in the Loan Agreement, and all supplements,  amendments and
modifications thereto and all extensions and renewals thereof;

     (f)  performance  of every  obligation,  covenant and  agreement of Trustor
contained in any  agreement  now or hereafter  executed by Trustor which recites
that the obligations thereunder are secured by this Deed of Trust;

     (g) compliance with and performance of each and every material provision of
any  declaration  of covenants,  conditions and  restrictions  pertaining to the
Trust Estate or any portion thereof.

     This  Deed of Trust,  the Loan  Agreement,  and any  other  deeds of trust,
mortgages,  agreements,  guaranties  or other  instruments  given to evidence or
further secure the payment and performance of any obligation  secured hereby may
hereafter be collectively referred to as the "Loan Documents."

     TO PROTECT THE SECURITY OF THIS DEED OF TRUST, TRUSTOR HEREBY COVENANTS AND
AGREES AS FOLLOWS:

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                                    ARTICLE I
                       COVENANTS AND AGREEMENTS OF TRUSTOR

     1.1 Payment of Secured  Obligations.  Trustor shall perform all obligations
required of them under the Loan  Agreement  and shall pay all charges,  fees and
other sums as provided in the Loan  Documents;  the principal of and interest on
any future  advances  secured by this Deed of Trust;  and the  principal  of and
interest on any other indebtedness secured by this Deed of Trust.

     1.2  Application  of Payment.  Except as  otherwise  expressly  provided by
applicable  law or any  other  provision  of this Deed of  Trust,  all  payments
received by  Beneficiary  from Trustor under the Loan  Agreement or this Deed of
Trust shall be applied by Beneficiary in the following order:  (1) costs,  fees,
charges, and advances paid or incurred by Beneficiary or payable to Beneficiary,
and  interest  thereon  pursuant  to or required  by any  provision  of the Loan
Agreement,  this Deed of Trust,  and any other loan  documents  securing them in
such  order as  Beneficiary,  in  Beneficiary's  sole  discretion,  elects;  (2)
interest  payable pursuant to the Loan Agreement;  and (3) principal  payable as
required by the Loan Agreement.

     1.3  Estoppel  Certificates.  Within  ten (10) days  after any  request  by
Beneficiary  for  such   information,   Trustor  will  execute  and  deliver  to
Beneficiary,  and any third party designated by Beneficiary, in recordable form,
a  certificate  reciting  that the Loan  Agreement  and this  Deed of Trust  are
unmodified  and in full force and effect,  or that the Loan  Agreement  and this
Deed of Trust  are in full  force and  effect as  modified  and  specifying  all
modifications asserted by Trustor.

     Should Trustor fail to execute and deliver such certificate within ten (10)
day period:  (a) the Loan Agreement and this Deed of Trust shall, as to Trustor,
conclusively  be  deemed  to  be  either  in  full  force  and  effect,  without
modification,  or in full force and  effect,  modified  in the manner and to the
extent specified by Beneficiary,  whichever  Beneficiary  reasonably and in good
faith may represent; and (b) Trustor shall conclusively be deemed irrevocably to
have constituted and appointed Beneficiary as Trustor's special attorney-in-fact
to execute and deliver such certificate to any third party.

     Trustor and Beneficiary  expressly agree that any certificate  executed and
delivered by Trustor,  or any  representation  in lieu of a certificate  made by
Beneficiary  under  this  Deed of Trust may be  relied  upon by any  prospective
purchaser  of the  estate,  or any  prospective  assignee  of  any  interest  of
Beneficiary  in  the  Property,   and  any  other  person,  without  independent
investigation or examination to determine the accuracy,  reasonableness, or good
faith of the recitals.

     The  exercise  by  Beneficiary  of any  right or  remedy  provided  by this
paragraph  shall not  constitute  a waiver of, or operate to cure any default by
Trustor under this Deed of Trust,  or preclude any other right or remedy that is
otherwise available to Beneficiary under this Deed of Trust or applicable law.

     1.4  Maintenance.  Repair.  Alterations and Compliance  with Laws.  Trustor
shall:

          (a) Maintain, preserve and keep the Trust Estate in good condition and
repair;

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          (b)  Not  remove,   demolish  or   substantially   alter  any  of  the
Improvements except upon the prior written consent of Beneficiary;

          (c)  Complete  promptly  and  in a good  and  workmanlike  manner  any
Improvement  which  may be now or  hereafter  constructed  on the  Premises  and
promptly  restore in like  manner any portion of the  Improvements  which may be
damaged or  destroyed  thereon from any cause  whatsoever,  and pay when due all
claims for labor performed and materials furnished therefor;

          (d)  Comply  with  all  laws,  ordinances,   regulations,   covenants,
conditions and restrictions now and hereafter  affecting the Trust Estate or any
part thereof or requiring any alterations or Improvements;

          (e) Not  commit or  permit  any  waste or  deterioration  of the Trust
Estate, and keep and maintain abutting grounds,  sidewalks,  roads,  parking and
landscape areas in good and neat order and repair;

          (f) Comply with the provisions of any lease,  if this Deed of Trust is
on a leasehold; and

          (g) Not  commit,  suffer or  permit  any act to be done in or upon the
Trust Estate in violation of any law, ordinance or regulation. Trustor shall not
apply for, willingly suffer or permit any change in zoning,  subdivision or land
use  regulations  affecting  the Property  without  first  obtaining the written
consent of Beneficiary which consent shall not be unreasonably withheld.

     1.5 Required  Insurance.  Trustor shall at all times provide,  maintain and
keep in force  or cause to be  provided,  maintained  and kept in  force,  at no
expense to Trustee or Beneficiary, policies of insurance in form and amounts and
issued by companies,  associations or organizations  reasonably  satisfactory to
Beneficiary  covering such casualties,  risks,  perils,  liabilities,  including
flood in areas  designated by the United States  Department of Housing and Urban
Development as being subject to overflow,  and other hazards as Beneficiary  may
reasonably require. All such policies of insurance required by the terms of this
Deed of Trust shall contain an  endorsement or agreement by the insurer that any
loss   shall  be  payable  in   accordance   with  the  terms  of  such   policy
notwithstanding  any act or  negligence  of Trustor or any party  holding  under
Trustor which might  otherwise  result in  forfeiture of said  insurance and the
further  agreement of the insurer waiving all rights of setoff,  counterclaim or
deductions against Trustor.

     1.6 Delivery of Policies. Payment of Premiums.

          (a) At  Beneficiary's  option all policies of  insurance  shall either
have  attached  thereto a lender's loss payable  endorsement  for the benefit of
Beneficiary  in form and substance  satisfactory  to  Beneficiary  or shall name
Beneficiary as an additional insured.  Trustor shall furnish Beneficiary with an
original,  a certified  copy of an original or a certificate  of all policies of
insurance  required  under Section 1.5 above which sets forth the coverage,  the
limits of liability,  the name of the carrier,  the Policy number and the period
of coverage.  If Beneficiary  consents,  Trustor may provide any of the required
insurance through blanket policies carried by Trustor and covering more than one
location,  or by  policies  procured by a tenant or other  party  holding  under
Trustor; provided, however,

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all such  policies  shall be in form  and  substance  and  issued  by  companies
satisfactory to  Beneficiary.  At least thirty (30) days prior to the expiration
of each required  policy,  Trustor shall deliver to Beneficiary  evidence of the
renewal  or  replacement  of such  policy,  continuing  insurance  in  form  and
substance as required by this Deed of Trust.  All such policies  shall contain a
provision  that,  notwithstanding  any contrary  agreement  between  Trustor and
insurance company, such policies will not be cancelled, allowed to lapse without
renewal,  surrendered  or  materially  amended,  which  term shall  include  any
reduction in the scope or limits of coverage, without at least thirty (30) days'
prior written notice to Beneficiary.

          (b) In the event Trustor fails to provide,  maintain, keep in force or
deliver to Beneficiary the policies of insurance  required by this Deed of Trust
Beneficiary  may (but shall have no  obligation  to) procure  such  insurance or
single-interest  insurance for such risks covering  Beneficiary's  interest, and
Trustor will pay all premiums thereon  promptly upon demand by Beneficiary,  and
until such  payment is made by Trustor,  the amount of all such  premiums  shall
bear interest at the Agreed Rate. Upon the occurrence of an Event of Default and
request by  Beneficiary,  Trustor  shall  deposit  with  Beneficiary  in monthly
installments,  an amount equal to one-twelfth (1/12) of the estimated  aggregate
annual insurance  premiums on all policies of insurance required by this Deed of
Trust.  In such event Trustor  further agrees to cause all bills,  statements or
other  documents  relating  to the  foregoing  insurance  premiums to be sent or
mailed directly to Beneficiary.  Upon receipt of such bills, statements or other
documents  evidencing that a premium for a required policy is then payable,  and
providing  Trustor has deposited  sufficient funds with Beneficiary  pursuant to
this  Section  1.6,  Beneficiary  shall  timely  pay such  amounts as may be due
thereunder  out of the funds so deposited with  Beneficiary.  If at any time and
for any reason the funds deposited with  Beneficiary are or will be insufficient
to pay such amounts as may be then or subsequently due, Beneficiary shall notify
Trustor and Trustor shall immediately deposit an amount equal to such deficiency
with Beneficiary.  Notwithstanding the foregoing, nothing contained herein shall
cause Beneficiary 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 Beneficiary pursuant
to this Section 1.6, nor shall anything  contained  herein modify the obligation
of Trustor set forth in Section 1.5 hereof to maintain  and keep such  insurance
in force at all times. Beneficiary may commingle said reserve with its own funds
and Trustor shall be entitled to no interest thereon.

     1.7 Casualties:  Insurance  Proceeds.  In the event of any loss, whether or
not covered by insurance,  Trustor shall give  immediate  written  notice to the
Beneficiary  and to the insurance  carrier,  if applicable,  on an insured risk.
Trustor  authorizes and empowers  irrevocably,  at  Beneficiary's  option and in
Beneficiary's sole discretion as attorney-in-fact  for Trustor, to make proof of
loss, to adjust and compromise any claim under insurance policies,  to appear in
and prosecute any action  arising from such insurance  policies,  to collect and
receive  insurance  proceeds,  and to deduct  therefrom  Beneficiary's  expenses
incurred in the collection of such  proceeds,  including  reasonable  attorneys'
fees. Trustor further  authorizes  Beneficiary,  at Beneficiary's  option and in
Beneficiary's sole discretion, and regardless of whether there is any impairment
of the  security  for this  Deed of  Trust:  (a) to apply  the  balance  of such
proceeds,  or any portion of them, upon any indebtedness secured by this Deed of
Trust, whether or not then due, including but not limited to, principal, accrued
interest and  advances,  and in such order or  combination  as  Beneficiary  may
determine;  or (b) to hold the balance of such proceeds, or any portion of them,
in a noninterest bearing liability

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account to be used for the cost of reconstruction,  repair, or alteration of the
Improvements on the property; or (c) to release the balance of such proceeds, or
any portion of them,  to the  Trustor.  If the  insurance  proceeds  are held by
Beneficiary  to be used to reimburse  Trustor for the costs of  restoration  and
repair of the Improvements, the Improvements shall be restored to the equivalent
of its original condition, or such other condition as Beneficiary may approve in
writing, and Beneficiary may, at Beneficiary's option, condition disbursement of
the proceeds on Beneficiary's approval of such plans and specifications prepared
by an  architect  satisfactory  to  Beneficiary,  contractor's  cost  estimates,
architect's  certificates,  waivers of liens,  sworn statements of mechanics and
materialmen,  and  such  other  evidence  of  costs,  percentage  completion  of
construction, application of payments, and satisfaction of liens, as Beneficiary
may reasonably  require.  Prior to  disbursement or application of the proceeds,
they may be utilized  by  Beneficiary,  who is  entitled to all  earnings on the
proceeds, if any.

     If the insurance proceeds are applied to the payment of the sums secured by
this Deed of Trust,  any such  application  of proceeds to  principal  shall not
extend or postpone the due date of the monthly installments  referred to in this
Deed of Trust or change the amount of such installment.

     In no event shall  either  Trustee or  Beneficiary  be obligated to see to,
approve,  or supervise the proper  application of any hazard insurance  proceeds
released to Trustor.

     The receipt, application, use, and release of the hazard insurance proceeds
shall  not cure or  constitute  a waiver of any  default  or  pending  notice of
default under this Deed of Trust,  nor  invalidate any act done pursuant to such
notice.

     No hazard insurance  proceeds paid or released to Trustor or applied on the
cost of repair,  restoration, or alteration of the Improvements shall constitute
a payment of the indebtedness secured by this Deed of Trust.

     It  is  further  expressly   understood  and  agreed  between  Trustor  and
Beneficiary  that the right and option of  Beneficiary,  in the  exercise of its
sole discretion, to apply the proceeds or so much of them as may be necessary to
pay the  indebtedness  secured  by this Deed of Trust,  in whole or in part,  is
absolute, and is not contingent or conditional upon the adequacy or value of the
remaining property to secure such unpaid indebtedness,  or the nature, or extent
of the loss or damage for which such insurance proceeds are paid.

     1.8 Assignment of Policies Upon Foreclosure. In the event of foreclosure of
this Deed of Trust or other  transfer of title or assignment of the Trust Estate
in  extinguishment,  in whole or in part, of the debt secured hereby, all right,
title and interest of Trustor in and to all  policies of  insurance  required by
Section 1.5 and covering  solely the Trust Estate or any portion  thereof  shall
inure to the benefit of and pass to the  successor  in interest to Trustor or to
the purchaser or grantee of the Trust Estate.

     1.9 Indemnification: Subrogation: Waiver of Offset.

          (a) If Beneficiary  is made a party to any  litigation  concerning the
Deed of Trust,  any of the Loan Documents,  the Trust Estate or any part thereof
or interest therein, or the occupancy of

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the Trust  Estate by Trustor,  then  Trustor  shall  indemnify,  defend and hold
Beneficiary harmless from all liability by reason of said litigation,  including
reasonable  attorneys' fees and expenses  incurred by Beneficiary as a result of
any  such  litigation,  whether  or not any such  litigation  is  prosecuted  to
judgment.  However, Trustor shall not be obligated to indemnify, defend and hold
Beneficiary  harmless  from and against any claims which arise solely out of the
gross negligence or willful misconduct of Beneficiary. Beneficiary may employ an
attorney or attorneys to protect its rights hereunder,  and in the event of such
employment  following  any  breach by  Trustor,  Trustor  shall pay  Beneficiary
reasonable attorneys' fees and expenses incurred by Beneficiary,  whether or not
an action is actually commenced against Trustor by reason of its breach.

          (b)  Trustor  waives  any and all  right to claim or  recover  against
Beneficiary, its officers, employees, agents and representatives, for loss of or
damage to Trustor,  the Trust  Estate,  Trustor's  property  or the  property of
others under Trustor's  control from any cause insured against or required to be
insured against by the provisions of this Deed of Trust.

          (c) All sums  payable by Trustor  pursuant to this Deed of Trust shall
be paid without notice, demand,  counterclaim,  setoff, deduction or defense and
without  abatement,  suspension,  deferment,  diminution or  reduction,  and the
obligations  and  liabilities of Trustor  hereunder shall in no way be released,
discharged or otherwise affected (except as expressly provided herein) by reason
of: (i) any damage to or destruction of or any condemnation or similar taking of
the Trust Estate or any part thereof;  (ii) any  restriction or prevention of or
interference  by any third  party  with any use of the Trust  Estate or any part
thereof; (iii) any title defect or encumbrance or any eviction from the Premises
or the  Improvements or any part thereof by title  paramount or otherwise;  (iv)
any   bankruptcy,   insolvency,    reorganization,    composition,   adjustment,
dissolution,  liquidation or other like proceeding  relating to Beneficiary,  or
any action  taken with  respect to this Deed of Trust by any trustee or receiver
of  Beneficiary,  or by any court, in any such  proceeding;  (v) any claim which
Trustor has or might have  against  Beneficiary;  (vi) any default or failure on
the part of  Beneficiary to perform or comply with any of the terms hereof or of
any other  agreement  with Trustor;  or (vii) any other  occurrence  whatsoever,
whether similar or dissimilar to the foregoing whether or not Trustor shall have
notice  or  knowledge  of any of the  foregoing.  Except as  expressly  provided
herein,  Trustor  waives  all rights now or  hereafter  conferred  by statute or
otherwise to any abatement,  suspension,  deferment,  diminution or reduction of
any sum secured hereby and payable by Trustor.

     1.10 Taxes and Impositions.

          (a) Trustor shall pay, or cause to be paid prior to  delinquency,  all
real property taxes and  assessments,  general and special,  and all other taxes
and assessments of any kind or nature whatsoever, including, without limitation,
nongovernmental  levies or assessments  such as maintenance  charges,  levies or
charges  resulting from  covenants,  conditions and  restrictions  affecting the
Trust Estate, which are assessed or imposed upon the Trust Estate, or become due
and payable,  and which  create,  may create or appear to create a lien upon the
Trust  Estate,  or any part thereof,  or upon any  property,  equipment or other
facility  used in the  operation  or  maintenance  thereof  (all the above shall
collectively be hereinafter  referred to as "Impositions");  provided,  however,
that if, by law any such  Imposition  is  payable,  or may at the  option of the
taxpayer be paid,  in  installments,  Trustor may pay the same or cause it to be
paid,  together  with  any  accrued  interest  on the  unpaid  balance  of  such
Imposition, in installments as the same become due and before any fine,

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penalty,  interest or cost may be added  thereto for the  nonpayment of any such
installment and interest.

          (b) If at any time after the date  hereof  there  shall be assessed or
imposed (i) a tax or assessment on the Trust Estate in lieu of or in addition to
the  impositions  payable by Trustor  pursuant  to  Section  1.10(a),  or (ii) a
license fee, tax or assessment  imposed on Beneficiary  and measured by or based
in whole or in part  upon the  amount  of the  outstanding  obligations  secured
hereby, then all such taxes,  assessments or fees shall be deemed to be included
within the term  "Impositions"  as defined in Section  1.10(a) and Trustor shall
pay and  discharge  the same as herein  provided  with respect to the payment of
Impositions. If Trustor fails to pay such Impositions prior to delinquency or if
Trustor is prohibited by law from paying such  Impositions,  Beneficiary  may at
its option  declare all  obligations  secured  hereby  together with all accrued
interest thereon,  immediately due and payable.  Anything to the contrary herein
notwithstanding,  Trustor shall have no obligation to pay any franchise, estate,
inheritance,  income,  excess profits or similar tax levied on Beneficiary or on
the obligations secured hereby.

          (c) Upon request by Beneficiary,  Trustor shall deliver to Beneficiary
within thirty (30) days after the last date prior to delinquency  for payment of
any such Imposition  official receipts of the appropriate  taxing authority,  or
other proof satisfactory to Beneficiary, evidencing the payment thereof.

          (d)  Trustor  shall have the right  before any  delinquency  occurs to
contest  or  object  to the  amount  or  validity  of  any  such  Imposition  by
appropriate proceedings,  but such right shall not be deemed or construed in any
way as  relieving,  modifying  or extending  Trustor's  covenant to pay any such
Imposition at the time and in the manner  provided in this Section 1.10,  unless
Trustor has given prior written notice to Beneficiary of Trustor's  intent to so
contest or object to an Imposition,  and unless,  at Beneficiary's  sole option,
(i) Trustor shall demonstrate to Beneficiary's satisfaction that the proceedings
to be initiated by Trustor shall conclusively operate to prevent the sale of the
Trust Estate, or any part thereof, and to satisfy such Imposition prior to final
determination  of such  proceedings;  and (ii) Trustor  shall furnish a good and
sufficient bond or surety as requested by and  satisfactory  to Beneficiary;  or
(iii) Trustor shall  demonstrate to Beneficiary's  satisfaction that Trustor has
provided a good and  sufficient  undertaking  as may be required or permitted by
law to accomplish a stay of any such sale.

          (e)  Upon the  occurrence  of any  Event of  Default  and  request  by
Beneficiary,  Trustor  shall pay to  Beneficiary  an initial  cash reserve in an
amount adequate to pay all Impositions for the ensuing tax fiscal year and shall
thereafter  continue to deposit with Beneficiary,  in monthly  installments,  an
amount  equal  to one  twelfth  (1/12)  of the  sum  of the  annual  Impositions
reasonably  estimated by Beneficiary,  for the purpose of paying the installment
of  Impositions  next due on the Trust Estate (funds  deposited for this purpose
shall  hereinafter be referred to as "Impounds").  In such event Trustor further
agrees to cause all bills, statements or other documents relating to Impositions
to be sent or mailed  directly  to  Beneficiary.  Upon  receipt  of such  bills,
statements or other documents,  and providing  Trustor has deposited  sufficient
Impounds with Beneficiary  pursuant to this Section 1.10(e),  Beneficiary  shall
timely  pay  such  amounts  as may  be due  thereunder  out of the  Impounds  so
deposited  with  Beneficiary.  If at any time and for any  reason  the  Impounds
deposited with  Beneficiary  are or will be  insufficient to pay such amounts as
may then or subsequently be due,

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Beneficiary  may notify  Trustor  and upon such  notice  Trustor  shall  deposit
immediately an amount equal to such deficiency with Beneficiary. Notwithstanding
the foregoing,  nothing  contained herein shall cause Beneficiary 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  Beneficiary  pursuant to this Section  1.10(e).
Beneficiary may commingle Impounds with its own funds and shall not be obligated
to pay or  allow  any  interest  on any  Impounds  held by  Beneficiary  pending
disbursement  or  application  hereunder.  Beneficiary  may  reserve  for future
payment of Impositions  such portion of the Impounds as  Beneficiary  may in its
absolute  discretion deem proper. Upon an Event of Default under any of the Loan
Documents  or this Deed of Trust,  Beneficiary  may  apply  the  balance  of the
Impounds upon any  indebtedness  or obligation  secured  hereby in such order as
Beneficiary  may  determine,  notwithstanding  that  said  indebtedness  or  the
performance  of  said  obligation  may  not yet be due  according  to the  terms
thereof.  Should  Trustor fail to deposit with  Beneficiary  (exclusive  of that
portion  of said  payments  which  has  been  applied  by  Beneficiary  upon any
indebtedness  or obligation  secured  hereby) sums  sufficient to fully pay such
Impositions at least fifteen (15) days before delinquency  thereof,  Beneficiary
may, at Beneficiary's election, but without any obligation so to do, advance any
amounts  required to make up the deficiency,  which  advances,  if any, shall be
secured  hereby  and shall be  repayable  to  Beneficiary  as  herein  elsewhere
provided,  or at the option of  Beneficiary  the latter may,  without making any
advance  whatever,  apply  any  Impounds  held by it upon  any  indebtedness  or
obligation   secured  hereby  in  such  order  as  Beneficiary   may  determine,
notwithstanding that said indebtedness or the performance of said obligation may
not yet be due according to the terms thereof. Should any Event of Default occur
or exist on the part of the  Trustor  in the  payment or  performance  of any of
Trustor's or any guarantor's  obligations under the terms of the Loan Documents,
Beneficiary may, at any time, at Beneficiary's option, apply any sums or amounts
in its hands received pursuant to Sections 1.10(e) hereof, or as rents or income
of the Trust Estate or  otherwise,  to any  indebtedness  or  obligation  of the
Trustor  secured  hereby in such  manner  and order as  Beneficiary  may  elect,
notwithstanding  said indebtedness or the performance of said obligation may not
yet be due according to the terms  thereof.  The receipt,  use or application of
any  such  Impounds  paid by  Trustor  to  Beneficiary  hereunder  shall  not be
construed  to affect the  maturity of any  indebtedness  secured by this Deed of
Trust or any of the rights or powers of  Beneficiary  or Trustee under the terms
of the Loan  Documents  or any of the  obligations  of Trustor or any  guarantor
under the Loan Documents.

          (f) Trustor shall not suffer,  permit or initiate the joint assessment
of any real and personal  property  which may constitute all or a Portion of the
Trust Estate or suffer,  Permit or initiate any other procedure whereby the lien
of the real property taxes and the lien of the personal  property taxes shall be
assessed, levied or charged to the Trust Estate as a single lien.

          (g) If requested by  Beneficiary,  Trustor shall cause to be furnished
to  Beneficiary a tax reporting  service  covering the Trust Estate of the type,
duration and with a company satisfactory to Beneficiary.

     1.11  Utilities.  Trustor  shall pay or shall cause to be paid when due all
utility  charges  which are  incurred  by Trustor  for the  benefit of the Trust
Estate or which may become a charge or lien  against  the Trust  Estate for gas,
electricity, water or sewer services furnished to the Trust Estate and all other
assessments or charges of a similar nature, whether public or private, affecting
or related to

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<PAGE>

the Trust Estate or any portion thereof,  whether or not such taxes, assessments
or charges are or may become liens thereon

     1.12 Actions  Affecting  Trust Estate.  Trustor shall appear in and contest
any action or proceeding  purporting to affect the security hereof or the rights
or powers  of  Beneficiary  or  Trustee;  and shall pay all costs and  expenses,
including the cost of evidence of title and attorneys'  fees, in any such action
or proceeding in which Beneficiary or Trustee may appear.

     1.13 Actions By Trustee or Beneficiary to Preserve Trust Estate. If Trustor
fails to make any payment or to do any act as and in the manner  provided in any
of the Loan Documents,  Beneficiary and/or Trustee,  each in its own discretion,
without obligation so to do, without releasing Trustor from any obligation,  and
without notice to or demand upon Trustor, may make or do the same in such manner
and to such extent as either may deem necessary to protect the security  hereof.
In  connection  therewith  (without  limiting  their  general  powers,   whether
conferred herein,  in another Loan Document or by law),  Beneficiary and Trustee
shall have and are hereby given the right, but not the obligation,  (i) to enter
upon  and  take  possession  of  the  Trust  Estate;  (ii)  to  make  additions,
alterations,  repairs and  improvements to the Trust Estate which they or either
of them may  consider  necessary  or  proper  to keep the  Trust  Estate in good
condition  and  repair;  (iii)  to  appear  and  participate  in any  action  or
proceeding  affecting or which may affect the  security  hereof or the rights or
powers of Beneficiary or Trustee;  (iv) to pay, purchase,  contest or compromise
any encumbrance, claim, charge, lien or debt which in the judgment of either may
affect or appear to  affect  the  security  of this Deed of Trust or be prior or
superior hereto;  and (v) in exercising such powers, to pay necessary  expenses,
including  employment  of counsel or other  necessary or desirable  consultants.
Trustor shall,  immediately  upon demand  therefor by Beneficiary and Trustee or
any of them,  pay to  Beneficiary  and Trustee an amount equal to all respective
costs and expenses  incurred by them in  connection  with the exercise by either
Beneficiary  or  Trustee or both of the  foregoing  rights,  including,  without
limitation,  costs of evidence of title,  court costs,  appraisals,  surveys and
receiver's,  trustee's and attorneys' fees,  together with interest thereon from
the date of such expenditures at the Agreed Rate.

     1.14 Transfer of Trust Estate by Trustor. In order to induce Beneficiary to
make the loan secured hereby,  Trustor agrees that, in the event of any transfer
of the Trust  Estate  without  the prior  written  consent  of the  Beneficiary,
Beneficiary shall have the absolute right at its option, without prior demand or
notice, to declare all sums secured hereby immediately due and payable.  Consent
to one such  transaction  shall  not be  deemed  to be a waiver  of the right to
require consent to future or successive  transactions.  Beneficiary may grant or
deny such consent in its sole  discretion  and, if consent should be given,  any
such transfer  shall be subject to this Deed of Trust,  and any such  transferee
shall assume all  obligations  hereunder and agree to be bound by all provisions
contained  herein.  Such assumption shall not,  however,  release Trustor or any
maker or guarantor of the Loan Agreement from any liability  thereunder  without
the prior written consent of Beneficiary.  As used herein,  "transfer"  includes
the direct or indirect sale,  agreement to sell, transfer,  conveyance,  pledge,
collateral  assignment  or  hypothecation  of the Trust  Estate,  or any portion
thereof or interest therein, whether voluntary, involuntary, by operation of law
or  otherwise,  the execution of any  installment  land sale contract or similar
instrument  affecting all or a portion of the Trust Estate,  or the lease of all
or substantially all of the Trust Estate. The term "transfer" shall also include
the direct or indirect  transfer,  assignment,  hypothecation  or  conveyance of
legal or beneficial ownership of (i) any

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partnership  interest in Trustor (general or limited),  or (ii) more than 50% of
the voting stock of Trustor.

     1.15 Hazardous Materials.

     (a)  Except in  compliance  with all  applicable  Federal,  state and local
statutes,  laws, ordinances,  rules, regulations and common law now or hereafter
in effect,  and all  amendments  thereto,  relating to the  protection  of human
health or the  environment  (collectively,  "Environmental  Requirements"),  the
Trustor has not caused,  permitted  or suffered  and shall not cause,  permit or
suffer any  Hazardous  Material  (as  hereinafter  defined) to be brought  upon,
treated, kept, stored, transported, disposed of, discharged, released, produced,
manufactured,  generated, refined or used upon, about or beneath the Premises or
any portion hereof by the Trustor, its agents, employees,  contractors, tenants,
invitees or any other person.

     (b) The  Trustor  shall not  cause,  permit or suffer the  existence  of or
commission by the Trustor, its agents, employees, contractors, tenants, invitees
or any other person of a violation of any Environmental Requirements upon, about
or beneath the Premises or any portion  thereof.  The Trustor and the  Premises,
and the current and/or proposed use of the Premises,  are, and at all times will
continue to be, in compliance with all Environmental Requirements.

     (c) The Trustor agrees  promptly:  (1) to notify the Beneficiary in writing
of any change in the nature,  extent or  methodology  relating to any  Hazardous
Materials  maintained on or with respect to the Premises,  (2) to deliver to the
Beneficiary  within ten (10) days of the Trustor's receipt thereof copies of any
citations,   orders,  notices  or  other  material  governmental  communications
received  with  respect  to  Hazardous  Materials  upon,  about or  beneath  the
Premises, (3) to observe and comply with any and all Environmental  Requirements
relating to the use, maintenance, treatment, storage, transportation, generation
and disposal of Hazardous  Materials,  (4) to pay, perform or otherwise  satisfy
any fine, charge,  penalty, fee, damage, order,  judgment,  decree or imposition
related thereto which, if unpaid or unfulfilled,  would constitute a lien on the
Premises,  unless (A) the  validity  thereof  shall be  contested by the Trustor
diligently  and in good  faith  by  appropriate  proceedings  and  with  counsel
reasonably  satisfactory to the Beneficiary and (B) so long as the Trustor shall
have at all times deposited with the Beneficiary,  or posted a bond satisfactory
to the  Beneficiary  in, a sum equal to the amount  necessary (in the reasonable
discretion  of  the  Beneficiary)  to  comply  with  such  order  or  directive,
including, but not limited to, the amount of any fine, penalty, interest or cost
that may become due thereon by reason of or during such contest, (5) to take all
appropriate response actions,  including any removal or remedial actions, in the
event of a release,  emission,  discharge or disposal of any Hazardous Materials
in, on, under or from the Premises  necessary in order for the Premises to be or
remain in compliance with all Environmental  Requirements,  (6) upon the request
of the Beneficiary,  to permit the Beneficiary,  including its officers, agents,
employees,  contractors and  representatives,  to enter and inspect the Premises
for purposes of conducting an environmental assessment, and (7) upon the request
of the Beneficiary,  and at the Trustor's  expense,  to cause to be prepared for
the  Premises  such site  assessment  reports,  including,  but not  limited to,
engineering  studies,  historical  review  and  testing,  as may  be  reasonably
requested from time to time by the Beneficiary.

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<PAGE>

     (d) If the Trustor  shall fail,  in any manner,  to comply with (a) through
(c) above,  the  Beneficiary  may take (but shall not be obligated to), upon ten
(10) days written notice to the Trustor (or upon such lesser notice,  or without
notice,  if the  Beneficiary  deems that the same is  required  to  protect  the
Beneficiary's interest in the Premises),  any action which the Beneficiary shall
deem  necessary or desirable to cause the Premises and the use thereof to comply
with any  Environmental  Requirements  if,  the  failure  to  comply  with  such
Environmental Requirements,  could, in the Beneficiary's sole discretion, have a
material   adverse   effect  on  the  Premises  or  otherwise   jeopardize   the
Beneficiary's lien on or interest in the Premises created by this Deed of Trust.
The  Beneficiary  may expend such sums of money as reasonable  and necessary for
any such  purpose,  and the  Trustor  hereby  agrees to pay to the  Beneficiary,
immediately upon demand, all sums so expended by the Beneficiary,  together with
interest  thereon from the date of payment at the highest  rate then  prevailing
under the terms of the Loan Agreement for overdue  payments of principal,  until
so paid by the Trustor,  all sums so expended by the  Beneficiary,  and interest
thereon, shall be added to and secured by the lien of this Deed of Trust.

     (e) The Trustor agrees to indemnify,  defend, and reimburse and does hereby
hold   harmless  the   Beneficiary,   and  its  officers,   directors,   agents,
shareholders, employees, contractors,  representatives,  successors and assigns,
from and against  any and all claims,  judgments,  damages,  losses,  penalties,
fines, liabilities, encumbrances, liens, costs and expenses of investigation and
defense of any claim, of whatever kind or nature, including, without limitation,
reasonable  attorneys' fees and  consultants'  fees arising from the presence of
Hazardous Materials upon, about or beneath the Premises or migrating to and from
the  Premises or arising in any manner  whatsoever  out of the  violation of any
Environmental  Requirements  pertaining  to  the  Premises  and  the  activities
thereon,  or arising  from the breach of any covenant or  representation  of the
Trustor  contained in this Deed of Trust. The Trustor's  obligations  under this
Section  shall  survive  any  foreclosure  of  the  Premises  ore  repayment  or
extinguishment of the Trustor's indebtedness to the Beneficiary.

     (f) The  provisions of this Section are in addition to and  supplement  any
other representations,  warranties,  covenants and other provisions contained in
any documents or  instruments  evidencing or securing the  indebtedness  secured
hereby.

     For  purposes of this Deed of Trust,  "Hazardous  Material"  shall mean any
substance:

     1.   The presence of which requires investigation,  removal, remediation or
          any form of  clean-up  under  any  Federal,  state  or local  statute,
          regulation,  ordinance,  order, action, policy or common law currently
          in effect or in effect in the future, with any amendments thereto; or

     2.   Which is or  becomes  defined  as  a  "hazardous   waste,"  "hazardous
          substance,"  "pollutant" or "contaminant" under any Federal,  state or
          local statute,  regulation,  rule or ordinance or amendments  thereto,
          including,   without  limitation,   the  Comprehensive   Environmental
          Response,  Compensation  and Liability Act (42 U.S.Css.  9601 et seq.)
          and/or the Resource  Conservation and Recovery Act (42 U.S.C.ss.  6901
          et seq.); or

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<PAGE>

     3.   Which  is  toxic,   explosive,   corrosive,   flammable,   infectious,
          radioactive,  carcinogenic,  mutagenic or otherwise  hazardous  and is
          regulated  presently or in the future by any  governmental  authority,
          agency,  department,  commission,  board, agency or instrumentality of
          the  United   States,   the  State  of  California  or  any  political
          subdivision thereof; or

     4.   The presence of which on the  Premises  causes or threatens to cause a
          nuisance  upon the  Premises  or to  adjacent  properties  or poses or
          threatens  to pose a hazard to the  health or safety of  persons on or
          about the Premises; or

     5.   The  presence  of which on  adjacent  properties  could  constitute  a
          trespass by the Trustor; or

     6.   Which  contains,  without  limitation,  gasoline,  diesel  fuel or the
          constituents thereof, or other petroleum hydrocarbons; or

     7.   Which contains, without limitation,  polychlorinated biphenyls (PCBs),
          asbestos or urea formaldehyde foam insulation; or

     8.   Which contains, without limitation, radon, gas; or

     9.   Which contains, without limitation, radioactive materials or isotopes.

     1.16   Full   Performance   Required:    Survival   of   Warranties.    All
representations,  warranties  and  covenants  of Trustor  contained  in any loan
application or made to Beneficiary in connection with the loan secured hereby or
contained in the Loan  Documents or  incorporated  by reference  therein,  shall
survive  the  execution  and  delivery  of this Deed of Trust  and shall  remain
continuing obligations, warranties and representations of Trustor so long as any
portion of the obligations secured by this Deed of Trust remain outstanding.

     1.17  Eminent  Domain.  In the  event  that any  proceeding  or  action  be
commenced  for the taking of the Trust  Estate,  or any part thereof or interest
therein,  for  public or  quasi-public  use under the power of  eminent  domain,
condemnation  or otherwise,  or if the same be taken or damaged by reason of any
public improvement or condemnation proceeding, or in any other manner, or should
Trustor  receive  any notice or other  information  regarding  such  proceeding,
action,  taking or damage,  Trustor shall give prompt  written notice thereof to
Beneficiary.  Beneficiary shall be entitled at its option, without regard to the
adequacy of its security,  to commence,  appear in and prosecute in its own name
any such action or  proceeding.  Beneficiary  shall also be entitled to make any
compromise  or  settlement  in  connection  with  such  taking  or  damage.  All
compensation,  awards, damages, rights of action and proceeds awarded to Trustor
by reason of any such taking or damage to the Premises or the  Improvements,  or
any part thereof or any interest  therein for public or  quasi-public  use under
the power of eminent domain by reason of any public  improvement or condemnation
proceeding,  or in any other  manner (the  "Condemnation  Proceeds")  are hereby
assigned to Beneficiary  and Trustor agrees to execute such further  assignments
of the  Condemnation  Proceeds  as  Beneficiary  or Trustee may  require.  After
deducting therefrom all costs and expenses  (regardless of the particular nature
thereof and whether incurred with or without suit),  including  attorneys' fees,
incurred by it in

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connection with any such action or proceeding,  Beneficiary shall apply all such
Condemnation Proceeds to the restoration of the Improvements,  provided that the
taking or damage  will not, in  Beneficiary's  reasonable  judgment,  materially
affect the contemplated use and operation of the Improvements.

     If the above condition is met,  Beneficiary shall disburse the Condemnation
Proceeds as repairs or replacements are effected and continuing  expenses become
due  and  payable.  If  the  following   completion  of  all  such  repairs  and
replacements  any  Condemnation  Proceeds remain  undisbursed,  then Beneficiary
shall  apply  such  undisbursed  Condemnation  Proceeds  toward  payment  of the
outstanding  balance of the Loan,  and any  Condemnation  Proceeds  which remain
undisbursed  after payment in full of the Loan shall be released by  Beneficiary
to the person or persons  legally  entitled  thereto.  If any one or more of the
above  conditions are not met,  Beneficiary  shall apply all of the Condemnation
Proceeds,  after  deductions  as  herein  provided,  to  the  repayment  of  the
outstanding  balance  of the Loan  Agreement,  together  with  accrued  interest
thereon,  notwithstanding  that  said  outstanding  balance  may  not be due and
payable.  If the  Condemnation  Proceeds  are not  sufficient  to repay the Loan
Agreement in full, Trustor shall immediately pay any remaining balance, together
with  accrued  interest  thereon.  Application  or release  of the  Condemnation
Proceeds  as  provided  herein  shall not cure or waive any default or notice of
default  hereunder or under any other Loan Document or  invalidate  any act done
pursuant to such notice.

     1.18  Additional  Security.  No other  security now existing,  or hereafter
taken, to secure the obligations secured hereby shall be impaired or affected by
the execution of this Deed of Trust, and all additional security shall be taken,
considered and held as cumulative. The taking of additional security,  execution
of partial releases of the security,  or any extension of the time of payment of
the  indebtedness  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 said  indebtedness.  In the event Beneficiary at any
time holds additional security for any of the obligations secured hereby, it may
enforce the sale  thereof or  otherwise  realize  upon the same,  at its option,
either before, concurrently, or after a sale in made hereunder.

     1.19 Appointment of Successor Trustee.  Beneficiary may, from time to time,
by a written  instrument  executed and  acknowledged by  Beneficiary,  mailed to
Trustor and  recorded in the county in which the Trust  Estate is located and by
otherwise  complying  with  the  provisions  of  applicable  law,  substitute  a
successor or  successors to any Trustee  named herein or acting  hereunder;  and
said successor shall, without conveyance from the Trustee  predecessor,  succeed
to all title, estate, rights, powers and duties of said predecessor.

     1.20  Successors and Assigns.  This Deed of Trust applies to, inures to the
benefit  of and binds all  parties  hereto,  their  heirs,  legatees,  devisees,
administrators,  executors, successors and assigns. The term "Beneficiary" shall
mean the  owner  and  holder  of the Loan  Agreement,  whether  or not  named as
Beneficiary herein.

     1.21 Inspections.  Beneficiary,  or it agents,  representatives or workers,
are authorized to enter at any reasonable  time upon or in any part of the Trust
Estate for the purpose of inspecting  the same and for the purpose of performing
any of the acts it is authorized to perform  hereunder or under the terms of any
of the Loan Documents.

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     1.22 Liens. Trustor shall pay and promptly discharge, at Trustor's cost and
expense, all liens,  encumbrances and charges upon the Trust Estate, or any part
thereof or  interest  therein;  provided  that  Trustor  shall have the right to
contest in good faith the validity of any such lien, the  encumbrance or charge.
If Trustor  shall fail to remove and  discharge  any such lien,  encumbrance  or
charge,  then,  in  addition  to any  other  right  or  remedy  of  Beneficiary,
Beneficiary  may, but shall not be obligated to,  discharge the same,  either by
paying the amount claimed to be due, or by procuring the discharge of such lien,
encumbrance  or charge by depositing in a court a bond or the amount  claimed or
otherwise giving security for such claim, or by procuring such discharge in such
manner as is or may be prescribed by law. Trustor shall, immediately upon demand
therefor by  Beneficiary,  pay to  Beneficiary  an amount equal to all costs and
expenses  incurred by Beneficiary in connection with the exercise by Beneficiary
of the  foregoing  right to  discharge  any such  lien  encumbrance  or  charge,
together with interest  thereon from the date of such  expenditure at the Agreed
Rate.

     1.23 Trustee's Powers. At any time, or from time to time, without liability
therefor  and  without   notice,   upon  written   request  of  Beneficiary  and
presentation  of this Deed of Trust and the Loan  Agreement  secured  hereby for
endorsement,  and without  affecting  the  personal  liability of any person for
payment of the  indebtedness  secured hereby or the effect of this Deed of Trust
upon the  remainder of said Trust  Estate,  Trustee may (i) reconvey any part of
said  Trust  Estate,  (ii)  consent  in writing to the making of any map or plat
thereof,  (iii)  join in  granting  any  easement  thereon,  (iv) or join in any
extension agreement or any agreement subordinating the lien or charge hereof.

     1.24  Beneficiary's  Powers.  Without  affecting the liability of any other
person liable for the payment of any obligation  herein  mentioned,  and without
affecting the lien or charge of this Deed of Trust upon any portion of the Trust
Estate not then or  theretofore  released as security for the full amount of all
unpaid  obligations,  Beneficiary  may, from time to time and without notice (i)
release any person so liable, (ii) extend the maturity or alter any of the terms
of any such obligation, (iii) grant other indulgences, (iv) release or reconvey,
or cause to be released or  reconveyed at any time at  Beneficiary's  option any
parcel,  portion or all of the Trust  Estate,  (v) take or release  any other or
additional   security  for  any  obligation  herein  mentioned,   or  (vi)  make
compositions or other arrangements with debtors in relation thereto.

     1.25 Trade Names.  At the request of  Beneficiary,  Trustor shall execute a
certificate  in form  satisfactory  to  Beneficiary  listing  the trade names or
fictitious  business  names  under  which  Trustor  intends to operate the Trust
Estate or any business  located  thereon and  representing  and warranting  that
Trustor does business  under no other trade names or fictitious  business  names
with respect to the Trust Estate.  Trustor shall immediately  notify Beneficiary
in writing of any change in said trade names or fictitious  business names,  and
will, upon request of Beneficiary,  execute any additional  financing statements
and other  certificates  necessary  to  reflect  the  change  in trade  names or
fictitious business names.

     1.26 Leasehold.  If a leasehold  estate  constitutes a portion of the Trust
Estate, Trustor agrees not to amend, change,  terminate or modify such leasehold
estate or any interest therein without the prior written consent of Beneficiary.
Consent to one amendment,  change, agreement or modification shall not be deemed
to be a waiver of the right to require  consent to other,  future or  successive
amendments, changes, agreements or modifications.  Trustor agrees to perform all
obligations and agreements under said leasehold and shall not take any action or
omit to take any action which

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<PAGE>

would effect or permit the  termination  of said  leasehold.  Trustor  agrees to
promptly  notify  Beneficiary  in writing with respect to any default or alleged
default  by any  party  thereto  and to  deliver  to  Beneficiary  copies of all
notices,  demands,  complaints  or  other  communications  received  or given by
Trustor with respect to any such default or alleged default.  Beneficiary  shall
have the option to cure any such  default and to perform any or all of Trustor's
obligations  thereunder.  All sums  expended by  Beneficiary  in curing any such
default shall be secured hereby and shall be immediately due and payable without
demand or notice and shall bear interest from date of  expenditure at the Agreed
Rate.

                                   ARTICLE II
                     ASSIGNMENT OF RENTS, ISSUES AND PROFITS

     2.1 Assignment of Rents,  Issues and Profits.  Trustor further  irrevocably
grants,  transfers  and  assigns to  Beneficiary  the Rents  from the  Premises,
absolutely and unconditionally, and not merely as additional collateral security
for the indebtedness secured by this Deed of Trust.

     2.2  Assignment to  Beneficiary.  Trustor  hereby gives to and confers upon
Beneficiary  the  right,  power and  authority  to collect  the  Rents.  Trustor
irrevocably  appoints Beneficiary its true and lawful  attorney-in-fact,  at the
option of Beneficiary at any time and from time to time, to demand,  receive and
enforce payment,  to give receipts,  releases and satisfactions,  and to sue, in
the name of Trustor,  Trustee or  Beneficiary,  for all such  Rents,  issues and
profits  and  apply  the  same to the  indebtedness  secured  hereby;  provided,
however,  that so long as an Event of Default shall not have occurred  hereunder
and be  continuing,  Trustor  shall  have the  right to  collect  such  Rents in
accordance  with and  subject  to the  provisions  of this Deed of  Trust.  Upon
request of  Beneficiary,  Trustor shall execute and deliver to  Beneficiary,  in
recordable form, a specific  assignment of any Lease, now or hereafter affecting
the Trust Estate or any portion  thereof,  to further  evidence  the  assignment
hereby made.

     2.3  Election  of  Remedies.  Upon the  occurrence  of an Event of  Default
hereunder  Beneficiary  may, at its option,  exercise its rights  hereunder.  If
Beneficiary elects to exercise its rights hereunder, Beneficiary or Trustee may,
at any time  without  notice,  either  in  person,  by  agent  or by a  receiver
appointed by a court,  enter upon and take  possession  of all or any portion of
the Trust Estate,  enforce all Leases,  collect all Rents,  including those past
due and unpaid,  and apply the same,  to the costs and  expenses of operation of
the Trust Estate and collection, including, without limitation, attorneys' fees,
and to any  indebtedness  then secured hereby,  and in such order as Beneficiary
may  determine.  In connection  with the exercise by  Beneficiary  of its rights
hereunder,  Trustor agrees that Beneficiary shall have the right to specifically
enforce such rights and to obtain the  appointment  of a receiver in  accordance
with the  provisions  of Section 3.4 hereof  without  regard to the value of the
Trust Estate or the adequacy of any  security for the  obligations  then secured
hereby.  The collection of such Rents or the entering upon and taking possession
of the Trust Estate, or the application thereof as aforesaid,  shall not cure or
waive any default or notice of default  hereunder or invalidate  any act done in
response to such default or pursuant to such notice of default,  or be deemed or
construed to make  Beneficiary a  mortgage-in-possession  of the Trust Estate or
any portion thereof.

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                                   ARTICLE III
                              REMEDIES UPON DEFAULT

     3.1 Events of Default. Any of the following events shall be deemed an Event
of Default hereunder (an "Event of Default"):

     (a) Default shall be made in the payment of any installment of principal or
interest or any other sum secured hereby when due; or

     (b) A failure by Trustor to perform any other covenant or obligation or any
breach  by  Trustor  of any  other  agreements,  representations  or  warranties
contained in this Deed of Trust, the Loan Agreement, or any other Loan Document;
or

     (c) the  occurrence of a default or an "Event of Default"  under any of the
Loan Documents;

     (d) A writ of  execution  or  attachment  or any similar  process  shall be
issued or levied against all or any part of or interest in the Premises,  or any
judgment  involving  monetary  damages in any such case shall be entered against
Trustor which shall become a lien on the Premises or any portion thereof.

     (e) A default by Trustor of any terms or conditions of a Prior Encumbrance.

     For purposes of this Deed of Trust, the term "Prior Encumbrance" shall mean
any lien or  encumbrance  upon the Premises or any part thereof on a parity with
or prior or superior to the lien of this Deed of Trust.

     3.2 Acceleration Upon Default,  Additional Remedies. Upon the occurrence of
an Event of Default,  Beneficiary  may, at its option,  declare all indebtedness
secured  hereby to be  immediately  due and  payable  without  any  presentment,
demand, protest or notice of any kind. Thereafter, Beneficiary may:

          (a) Either in person or by agent,  with or without bringing any action
or proceeding,  or by a receiver  appointed by a court and without regard to the
adequacy of its security, enter upon and take possession of the Trust Estate, or
any part thereof, in its own name or in the of Trustee,  and do any act which it
deems necessary or desirable to preserve the value, marketability or rentability
of the Trust  Estate,  or any part  thereof or interest  therein,  increase  the
income  therefrom or protect the security  thereof and,  with or without  taking
possession of the Trust Estate,  sue for or otherwise collect the rents,  issues
and profits  thereof,  including those past due and unpaid,  and apply the same,
less  costs  and  expenses  of  operation  and  collection  including,   without
limitation,  attorneys' fees, upon any indebtedness  secured hereby, all in such
order as Beneficiary may determine.  The entering upon and taking  possession of
the Trust  Estate,  the  collection  of such  rents,  issues and profits and the
application thereof as aforesaid,  shall not cure or waive any default or notice
of default  hereunder or invalidate  any act done in response to such default or
pursuant to such  notice of default  and,  notwithstanding  the  continuance  in
possession of all or any portion of the Trust Estate or the collection,  receipt
and  application of rents,  issues or profits,  Trustee or Beneficiary  shall be
entitled

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<PAGE>

to exercise every right provided for in any of the Loan Documents or by law upon
occurrence of any Event of Default, including the right to exercise the power of
sale;

          (b) Commence an action to foreclose  this Deed of Trust as a mortgage,
appoint a receiver, or specifically enforce any of the covenants hereof;

          (c) Deliver to Trustee a written declaration of default and demand for
sale, and a written notice of default and election to cause  Trustor's  interest
in the Trust Estate to be sold, which notice Trustee or Beneficiary  shall cause
to be duly filed for record in the  Official  Records of the county in which the
Trust Estate is located; or

          (d) Exercise all other rights and  remedies  provided  herein,  in any
Loan Document or other  document or agreement  now or hereafter  securing all or
any portion of the obligations secured hereby, or by law.

     3.3 Foreclosure by Power of Sale. Should  Beneficiary elect to foreclose by
exercise of the power of sale hereby contained, Beneficiary shall notify Trustee
and shall  deposit with Trustee  this Deed of Trust and the Loan  Agreement  and
such receipt and evidence of expenditures made and secured hereby as Trustee may
require.

          (a) Upon receipt of such notice from Beneficiary,  Trustee shall cause
to be recorded,  published  and  delivered to Trustor such Notice of Default and
Election  to Sell as then  required  by law and by this Deed of  Trust.  Trustee
shall,  without  demand  on  Trustor,  after  lapse of such  time as may then be
required by law and after recordation of such Notice of Default and after Notice
of Sale having been given as required by law,  sell the Trust Estate at the time
and place of sale fixed by it in said Notice of Sale,  either as a whole,  or in
separate lots or parcels or items as Trustee shall deem  expedient,  and in such
order as it may  determine,  at public auction to the highest bidder for cash in
lawful money of the United  States  payable at the time of sale.  Trustee  shall
deliver to such purchaser or purchasers  thereof its good and sufficient deed or
deeds  conveying  the  property so sold,  but without any  covenant or warranty,
express or implied.  The  recitals in such deed of any matters or facts shall be
conclusive proof of the truthfulness  thereof.  Any person,  including,  without
limitation,  Trustor,  Trustee or  Beneficiary,  may  purchase  at such sale and
Trustor  hereby  covenants to warrant and defend the title of such  purchaser or
purchasers.

          (b) After  deducting  all costs,  fees and  expenses of Trustee and of
this  Trust,  including  costs of  evidence  of title in  connection  with sale,
Trustee shall apply the proceeds of sale in the following  priority,  to payment
of: (i) first, all sums expended under the terms hereof,  not then repaid,  with
accrued  interest at the Agreed Rate;  (ii) second,  all other sums then secured
hereby;  and (iii) the  remainder,  if any,  to the  person or  persons  legally
entitled thereto.

          (c)  Subject to  California  Civil Code  Section  2924g,  Trustee  may
postpone  sale of all or any portion of the Trust Estate by public  announcement
at such time and place of sale,  and from time to time  thereafter  may postpone
such sale by public  announcement  or  subsequently  noticed  sale,  and without
further  notice  make such sale at the time fixed by the last  postponement,  or
may, in its discretion, give a new notice of sale.

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<PAGE>

     3.4  Appointment  of Receiver.  Upon the  occurrence of an Event of Default
hereunder,  Beneficiary,  as a matter of right and without  notice to Trustor or
anyone claiming under Trustor, and without regard to the then value of the Trust
Estate or the adequacy of any security for the obligations  then secured hereby,
shall  have the right to apply to any court  having  jurisdiction  to  appoint a
receiver  or  receivers  of the Trust  Estate,  and Trustor  hereby  irrevocably
consents to such appointment and waives notice of any application therefor.  Any
such  receiver  or  receivers  shall  have all the usual  powers  and  duties of
receivers in like or similar cases and all the powers and duties of  Beneficiary
in case of entry as provided  herein and shall continue as such and exercise all
such powers until the later of (i) the date of confirmation of sale of the Trust
Estate;  (ii) the  disbursement of all proceeds of the Trust Estate collected by
such receiver and the payment of all expenses incurred in connection  therewith;
or (iii) the termination of such receivership with the consent of Beneficiary or
pursuant to an order of a court of competent jurisdiction.

     3.5  Remedies Not  Exclusive.  Trustee and  Beneficiary,  and each of them,
shall be entitled to enforce  payment and  performance  of any  indebtedness  or
obligations secured hereby and to exercise all rights and powers under this Deed
of Trust  or  under  any Loan  Document  or other  agreement  or any laws now or
hereafter in force,  notwithstanding  some or all of the said  indebtedness  and
obligations secured hereby may now or hereafter be otherwise secured, whether by
mortgage,  deed of trust,  pledge,  lien,  assignment or otherwise.  Neither the
acceptance of this Deed of Trust nor its enforcement  whether by court action or
pursuant to the power of sale or other powers herein contained,  shall prejudice
or in any manner  affect  Trustee's  or  Beneficiary's  right to realize upon or
enforce any other security now or hereafter held by Trustee or  Beneficiary,  it
being agreed that Trustee and  Beneficiary,  and each of them, shall be entitled
to enforce this Deed of Trust and any other  security  now or hereafter  held by
Beneficiary or Trustee in such order and manner as they or either of them may in
their absolute discretion determine. No remedy herein conferred upon or reserved
to Trustee or Beneficiary is intended to be exclusive of any other remedy herein
or by law provided or permitted,  but each shall be  cumulative  and shall be in
addition to every other remedy given  hereunder or now or hereafter  existing at
law or in equity or by statute.  Every power or remedy  given by any of the Loan
Documents to Trustee or  Beneficiary or to which either of them may be otherwise
entitled, may be exercised, concurrently or independently, from time to time and
as often as may be deemed expedient by Trustee or Beneficiary and either of them
may  pursue  inconsistent  remedies.  No waiver of any  default  of the  Trustor
hereunder  shall be implied  from any  omission by the  Beneficiary  to take any
action on account of such default if such default  persists or be repeated,  and
no express  waiver shall affect any default other than the default  specified in
the express waiver and that only for the time and to the extent therein  stated.
No acceptance of any payment of any one or more  delinquent  installments  which
does not  include  interest  at the  penalty  or  default  rate from the date of
delinquency,  together with any required late charge,  shall constitute a waiver
of the right of Beneficiary at any time thereafter to demand and collect payment
of interest at such default rate or of late charges, if any.

     3.6  Request for Notice.  Trustor  hereby  requests a copy of any notice of
default and that any notice of sale hereunder by mailed to it at the address set
forth in Section 4.5 of this Deed of Trust.

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<PAGE>

                                   ARTICLE IV
                                  MISCELLANEOUS

     4.1  Amendments.  This Deed of Trust  nor any  provision  hereof  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.

     4.2 Trustor  Waiver of Rights.  Trustor  waives to the extent  permitted by
law, (i) the benefit of all laws now  existing or that may  hereafter be enacted
providing for any  appraisement  before sale of any portion of the Trust Estate,
and, (ii) all rights of redemption, valuation,  appraisement, stay of execution,
notice  of  election  to  mature  or  declare  due  the  whole  of  the  secured
indebtedness  and  marshaling  in the event of  foreclosure  of the liens hereby
created,  and (iii) all rights and remedies which Trustor may have or be able to
assert by reason of the laws of the State of California pertaining to the rights
and remedies of sureties;  provided,  however, nothing contained herein shall be
deemed to be a waiver of Trustor's  rights under Section 2924c of the California
Civil Code.

     4.3  Statements  by  Trustor.  Trustor  shall,  within  ten (10) days after
written  notice  thereof  from  Beneficiary,  deliver to  Beneficiary  a written
statement stating the unpaid principal of and interest on the Loan Agreement and
any other amounts  secured by this Deed of Trust and stating  whether any offset
or defense exists against such principal and interest.

     4.4  Reconveyance by Trustee.  Upon written request of Beneficiary  stating
that all sums secured  hereby have been paid in full, and upon surrender of this
Deed of Trust and the Loan Agreement to Trustee for  cancellation and retention,
and upon  payment  by Trustor of  Trustee's  fees,  Trustee  shall  reconvey  to
Trustor, or to the person or persons legally entitled thereto, without warranty,
any  portion of the Trust  Estate  then held  hereunder.  The  recitals  in such
reconveyance  of  any  matters  or  facts  shall  be  conclusive  proof  of  the
truthfulness  thereof.  The grantee in any reconveyance may be described as "the
person or persons legally entitled thereto."

     4.5 Notices. All notices,  requests and demands to be made hereunder to the
parties  hereto  shall be in writing and shall be  delivered  by hand or sent by
registered or certified mail, return receipt requested, postage pre-paid through
the United  States  Postal  Service to the  addresses  shown below or such other
addresses  which the parties may provide to one another in accordance  herewith.
Such notices,  requests and demands, if sent by mail, shall be deemed given five
(5) days after  deposit in the United  States  mails and if  delivered  by hand,
shall be deemed given when delivered.

         To Beneficiary:      Arter & Hadden LLP
                              Attn: Bruce G. Holden
                              5 Park Plaza, Suite 1000
                              Irvine, CA 92614-8528

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<PAGE>

         To Trustor:          CAN CAL RESOURCES LIMITED
                              8221 Cretan Blue Lane
                              Las Vegas, NV 89128-7466

     4.6  Acceptance  by Trustee.  Trustee  accepts this Trust when this Deed of
Trust,  duly executed and  acknowledged,  is made a public record as provided by
law.

     4.7  Captions.  The  captions or headings at the  beginning of each Section
hereof are for the convenience of the parties and are not a Part of this Deed of
Trust.

     4.8 Invalidity of Certain Provisions. Every provision of this Deed of Trust
is  intended  to be  severable.  In any  event any term or  provision  hereof is
declared  to be  illegal  or invalid  for any  reason  whatsoever  by a court of
competent  jurisdiction,  such  illegality  or  invalidity  shall not affect the
balance of the terms and provisions  hereof,  which terms and  provisions  shall
remain binding and enforceable.  If the lien of this Deed of Trust is invalid or
unenforceable  as to any  part  of  the  debt,  or if the  lien  is  invalid  or
unenforceable  as to any part of the Trust  Estate,  the  unsecured or partially
unsecured  portion of the debt shall be completely  paid prior to the payment of
the  remaining  and secured or partially  secured  portion of the debt,  and all
payments  made on the debt,  whether  voluntary  or under  foreclosure  or other
enforcement action or procedure,  shall be considered to have been first paid on
and applied to the full payment of that portion of the debt which is not secured
or fully secured by the lien of this Deed of Trust.

     4.9 Subrogation. To the extent that proceeds of the Loan Documents are used
to pay any  outstanding  lien,  charge or Prior  Encumbrance  against  the Trust
Estate,  such proceeds have been or will be advanced by Beneficiary at Trustor's
request and Beneficiary shall be subrogated to any and all rights and liens held
by  any  owner  or  holder  of  such  outstanding   liens,   charges  and  Prior
Encumbrances,  irrespective of whether said liens,  charges or encumbrances  are
released.

     4.10 Attorneys'  Fees. If the Loan Documents is not paid when due or if any
Event of Default  occurs,  Trustor  promises to pay all costs of enforcement and
collection, including but not limited to, reasonable attorneys' fees, whether or
not such  enforcement and collection  includes the filing of a lawsuit.  As used
herein, the term "attorneys' fees" or "attorneys' fees and costs" shall have the
meanings usually given such terms.

     4.11 No Merger of Lease. If both the lessor's and lessee's estate under any
lease or any portion thereof which  constitutes a part of the Trust Estate shall
at any time become vested in one owner,  this Deed of Trust and the lien created
hereby shall not be destroyed or  terminated by  application  of the doctrine of
merger  unless  Beneficiary  so  elects  as  evidenced  by  recording  a written
declaration so stating, and, unless and until beneficiary so elects, Beneficiary
shall continue to have and enjoy all of the rights and privileges of Beneficiary
as to the  separate  estates.  In  addition,  upon the  foreclosure  of the lien
created by this Deed of Trust on the Trust  Estate  pursuant  to the  provisions
hereof,  any leases or subleases  then existing and affecting all or any portion
of the Trust Estate shall not be destroyed or terminated by  application  of the
law of merger or as a matter  of law or as a result of such  foreclosure  unless
Beneficiary or any purchaser at such  foreclosure sale shall so elect. No act by
or on behalf of Beneficiary or any such purchaser shall constitute a termination
of any Lease or

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<PAGE>

sublease unless  Beneficiary or such purchaser shall give written notice thereof
to such tenant or subtenant.

     4.12  Governing  Law. This Deed of Trust shall be governed by and construed
in accordance with the laws of the State of California.

     4.13 Joint and Several Obligations.  Should this Deed of Trust be signed by
more than one party, all obligations  herein contained shall be deemed to be the
joint and several  obligations of each party  executing this Deed of Trust.  Any
married  person  signing  this Deed of Trust  agrees  that  recourse  may be had
against  community  assets and  against  his or her  separate  property  for the
satisfaction of all obligations contained herein.

     4.14  Interpretation.  In this Deed of Trust the singular shall include the
plural and the  masculine  shall include the feminine and neuter and vice versa,
if the context so requires.

     4.15  Loan  Statement  Fees.  Trustor  shall  pay the  amount  demanded  by
Beneficiary or its authorized loan servicing  agent for any statement  regarding
the obligations  secured  hereby;  provided,  however,  that such amount may not
exceed the maximum  amount  allowed by law at the time request for the statement
is made.

     4.16  Counterparts.  This Deed of Trust may be executed and acknowledged in
counterparts, all of which executed and acknowledged counterparts shall together
constitute  a  single  document.  Signature  and  acknowledgement  pages  may be
detached from the counterparts and attached to a single copy of this document to
physically form one document, which may be recorded.

     4.17 Financing Statement and Fixture Filing.

          (a) This Deed of Trust  constitutes a Security  Agreement with respect
to all personal property and fixtures in which Beneficiary is granted a security
interest hereunder, and Beneficiary shall have all of the rights and remedies of
a secured party under the California Commercial Code as well as all other rights
and remedies available at law or in equity. Trustor hereby agrees to execute and
deliver on demand and hereby  irrevocably  constitutes and appoints  Beneficiary
the  attorney-in-fact  of Trustor, to execute,  deliver and, if appropriate,  to
file with the  appropriate  filing  officer or office such security  agreements,
financing   statements,   continuation   statements  or  other   instruments  as
Beneficiary  may request or require in order to impose,  perfect or continue the
perfection of, the lien or security interest created hereby. Upon the occurrence
and during the  continuance  of any  default by Trustor  hereunder,  Beneficiary
shall have the right to cause any of the Trust Estate which is personal property
and subject to the security interest of Beneficiary  hereunder to be sold at any
one or more  public  or  private  sales as  permitted  by  applicable  law,  and
Beneficiary shall further have all other rights and remedies, whether at law, in
equity,  or by statute,  as are available to secured  creditors under applicable
law.  Any  such  disposition  may  be  conducted  by an  employee  or  agent  of
Beneficiary  or Trustee.  Any person,  including  both Trustor and  Beneficiary,
shall be  eligible  to  purchase  any part or all of such  property  at any such
disposition.

          Expenses of retaking, holding, preparing for sale, selling or the like
shall be  borne  by  Trustor  and  shall  include  Beneficiary's  and  Trustee's
reasonable attorneys' fees and legal expenses.

                                       88

<PAGE>

Trustor,  upon demand of Beneficiary,  shall assemble such personal property and
make it available to Beneficiary at the Premises, a place which is hereby deemed
to be reasonably  convenient to Beneficiary and Trustor.  Beneficiary shall give
Trustor at least five (5) days prior written notice of the time and place of any
public  sale or other  disposition  of such  property or of the time of or after
which any private sale or any other  intended  disposition is to be made, and if
such  notice is sent to  Trustor,  as the same is  provided  for the  mailing of
notices herein,  it is hereby deemed that such notice shall be and is reasonable
notice to Trustor.

          (b) This Deed of Trust  constitutes a financing  statement  filed as a
fixture filing in the Official  Records of the county  recorder of the county in
which the Premises  are located  with  respect to any and all fixtures  included
within the term "Trust  Estate" as used herein and with  respect to any goods or
other personal property that may now be, or hereafter become, such fixtures

     4.18 Further Assurances. Trustor, Beneficiary and Trustee agree to do or to
cause to be done such  further  acts and things and to execute and deliver or to
cause to be executed and  delivered  such  additional  assignments,  agreements,
powers and instruments,  as any of them may reasonably require or deem advisable
to keep valid and  effective  the charges and lien hereof,  to carry into effect
the  purposes of this Deed of Trust or to better  assure and confirm unto any of
them  their  rights,  powers  and  remedies  hereunder;  and,  upon  request  by
Beneficiary,  shall  supply  evidence or  fulfillment  of each of the  covenants
herein contained concerning which a request for such evidence has been made

     4.19 Nonforeign Entity.  Section 1445 of the Internal Revenue Code of 1986,
as amended (the  "Internal  Revenue  Code") and Section 18805 of the  California
Revenue and Taxation  Code  provides  that a transferee  of a U.S. real property
interest must  withhold tax if the  transferor  is a foreign  person.  To inform
Beneficiary that the withholding of tax will not be required in the event of the
disposition of the Premises or  Improvements  pursuant to the terms of this Deed
of Trust, Trustor hereby certifies, under penalty of perjury that:

          (a) Trustor is not a foreign corporation, foreign partnership, foreign
trust or foreign estate, as those terms are defined in the Internal Revenue Code
and the regulations promulgated thereunder; and

          (b) Trustor's U.S. employer identification number has been applied for
and  promptly  upon  receipt  shall be provided to  Beneficiary;  and  Trustor's
address is 8221 Cretan Blue Lane, Las Vegas, NV 89128-7466.

It  is  understood   that   beneficiary   may  disclose  the  contents  of  this
certification to the Internal  Revenue Service and the California  Franchise Tax
Board and that any false statement  contained  herein could be punished by fine,
imprisonment  or both.  Trustor  covenants  and agrees to execute  such  further
certificates,  which shall be signed under  penalty of perjury,  as  Beneficiary
shall  reasonably  require.  The  covenant  set fort  herein  shall  survive the
foreclosure  of the lien of this Deed of Trust or  acceptance  of a deed in lieu
thereof.

                                       89

<PAGE>

     IN WITNESS  WHEREOF,  Trustor has executed this Deed of Trust as of the day
and year first above written.

                                            Trustor:
                                            -------

                                            CAN CAL RESOURCES LIMITED

                                            By     /s/   Ronald D. Sloan
                                                --------------------------------

State of CALIFORNIA         )
                            )
County of                   )
          -----------------

         On   ,   before   me,   ,   notary    public,    personally    appeared
____________________________,  personally  known  to me or  proved  to me on the
basis  of  satisfactory  evidence  to be the  person(s)  whose  (name(s)  is/are
subscribed to the within  instrument  and  acknowledged  to me that  he/she/they
executed  the  same  in  his/her/their  authorized  capacity(ies),  and  that by
his/her/their  signature(s) on the instrument the person(s),  or the entity upon
behalf of which the person(s) acted, executed the instrument.

WITNESS my hand and official seal.

                                            ____________________________________
                                            Signature of Notary

State of CALIFORNIA         )
                            )
County of                   )
          -----------------

         On   ,   before   me,   ,   notary    public,    personally    appeared
____________________,  personally  known to me or  proved  to me on the basis of
satisfactory  evidence to be the person(s) whose (name(s)  is/are  subscribed to
the within instrument and acknowledged to me that he/she/they  executed the same
in   his/her/their   authorized   capacity(ies),   and  that  by   his/her/their
signature(s) on the instrument the person(s), or the entity upon behalf of which
the person(s) acted, executed the instrument.

WITNESS my hand and official seal.

                                            ____________________________________
                                            Signature of NotaryEXHIBIT 10.16

                                OPTION AGREEMENT

This Option Agreement ("Agreement") is made this 23rd day of November,  2000, by
and between CAN CAL  RESOURCES  LIMITED  ("Company")  and FIRST COLONY  MERCHANT
("First  Colony").  Company and First  Colony may  hereinafter  individually  be
referred to as "Party" and collectively as "Parties".

                                    RECITALS

     First Colony  desires to acquire the exclusive  right to purchase,  without
becoming  obligated to purchase,  300,000  shares of common  voting stock of the
Company ("the Shares").

     WHEREFORE,  in  consideration  of the  mutual  conditions,  covenants,  and
promises set forth herein,  and for other good and valuable  consideration,  the
sufficiency of which is hereby acknowledged by the parties hereto, it is agreed:

                                   ARTICLE I

                                 GRANT OF OPTION

     1.1 RECITALS. The recitals are made a part of this Agreement.

     1.2 GRANT OF OPTION. Subject to the terms and conditions of this Agreement,
Company hereby grants First Colony the exclusive right to purchase the Shares at
a price and under such terms and  conditions  as set forth in Article II of this
Agreement.

     1.3 OPTION  PERIOD.  The option period shall be effective upon execution of
that certain Loan Agreement between Company and First Colony and shall remain in
effect until December 1, 2005.

     1.4 EXERCISE OF OPTION.  First Colony may exercise  this option in whole or
in part by giving written notice thereof and delivering the dollar amount of the
purchase  price to  Company.  The  written  notice of exercise of option must be
given by First Colony to Company prior to the  termination  of the option period
provided herein, or any extension  thereof.  The purchase of any shares pursuant
to this  Agreement  shall be subject to and in  compliance  with all  applicable
Federal and State Securities Laws.

     1.5 AUTOMATIC TERMINATION. If First Colony fails to exercise this option in
accordance with its terms and within the option period or any extension thereof,
then the option  contained herein and the rights of First Colony hereunder shall
automatically and immediately terminate without notice.

     1.6  CHANGES  IN  CAPITALIZATION.  Subject  to any  required  action by the
shareholders of the Company, the Shares as well as the price per share of common
stock covered by the Shares shall be  proportionately  adjusted for any increase
or decrease in the number of issued shares of

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<PAGE>

common  stock of the Company  ("Common  Stock")  resulting  from a stock  split,
reverse stock split,  stock  dividend,  combination or  reclassification  of the
Common Stock,  or any other  increase or decrease in the number of issued shares
of Common Stock effected without receipt of consideration by the Company.

     1.7 DISSOLUTION OR LIQUIDATION. In the event of the proposed dissolution or
liquidation  of the  Company,  the Company  shall notify First Colony as soon as
practicable  prior  to the  effective  date of such  proposed  transaction.  The
Company in its  discretion  may  provide  for First  Colony to have the right to
exercise its option until fifteen (15) days prior to such  transaction as to all
of the  Shares  covered  thereby.  To the  extent  it has  not  been  previously
exercised,  the option will terminate  immediately  prior to the consummation of
such proposed action.

     1.8 MERGER OR ASSET SALE.  In the event of a merger of the Company  with or
into another corporation,  or the sale of substantially all of the assets of the
Company,  the option  referenced herein shall be assumed or an equivalent option
or right  substituted by the successor  corporation or a parent or subsidiary of
the successor corporation.

                                  ARTICLE II

                                PURCHASE OF STOCK

     2.1 PURCHASE  PRICE.  The purchase price for each share of the Shares shall
be the lower of $.65 per  share,  or 50% of the lowest  trading  price by Yahoo!
Finance  Historical  Quotes during the prior complete calendar month immediately
preceding the day of notice of intent to exercise of the option.

                                  ARTICLE III

                          EPRESENTATIONS AND WARRANTIES

     3.1 COMPANY'S WARRANTIES.  Company makes the following  representations and
warranties:

          3.1.1 STATUS OF SHARES.  The Shares are fully paid and  non-assessable
and the Company has the full power to transfer the Shares without  obtaining the
consent or approval of any other person or governmental authority.

          3.1.2 COMPLIANCE.  Company is not now, nor at the time such shares are
issued  will be,  knowingly  in any  violation  of any law,  order,  regulation,
requirement or directive of any governmental agency relating to the Shares.

          3.1.3 LIENS.  Company  represents  and warrants that there are not now
nor will there be any liens,  claims,  demands or options  other than  contained
herein in connection with the Shares.

                                       92

<PAGE>

          3.1.4 COMPANY'S INDEMNITIES. Company shall indemnify, defend, and hold
harmless the  Corporation and First Colony against and in respect of any and all
claims, demands,  losses, costs, expenses,  obligations,  liabilities,  damages,
recoveries,  and  deficiencies,  including  interest,  penalties and  reasonable
attorneys' fees, that they shall incur or suffer,  which arise,  result from, or
relate  to  any  breach  of,  or  failure  by  Company  to  perform  any  of its
representations,  warranties,  covenants,  or agreements in this Agreement or in
any  schedule,  certificate,  exhibit,  or other  instrument  furnished or to be
furnished by Company under this Agreement.

                                  ARTICLE IV

                                  MISCELLANEOUS

     4.1  EXPENSES.  Each of the parties  shall pay their own costs and expenses
incurred or to be incurred by them in  negotiating  and preparing this Agreement
and in  closing  and in  carrying  out  the  transactions  contemplated  by this
Agreement.

     4.2  EFFECT  OF  HEADINGS.  The  subject  headings  of the  paragraphs  and
subparagraphs  of this Agreement are included for purposes of convenience  only,
and  shall  not  affect  the  construction  or  interpretation  of  any  of  its
provisions.

     4.3 ENTIRE AGREEMENT;  MODIFICATION; WAIVER. This Agreement constitutes the
entire agreement between the parties  pertaining to the subject matter contained
in it and supersedes all prior and contemporaneous  agreements,  representations
and  understandings  of the parties.  No waiver of any of the provisions of this
Agreement shall be deemed,  or shall constitute a waiver of any other provision,
whether or not similar,  nor shall any waiver constitute a continuing waiver. No
waiver  shall be binding  unless  executed  in  writing by the party  making the
waiver.

     4.4 SEVERABILITY. Should any provision or portion of this Agreement be held
or  otherwise  become  unenforceable  or invalid for any reason,  the  remaining
provisions  and  portions  of  this  Agreement   shall  be  unaffected  by  such
unenforceability or invalidity.

     4.5 COUNTERPARTS.  This Agreement may be executed  simultaneously in one or
more counterparts,  each of which shall be deemed an original,  but all of which
together shall constitute one and the same instrument.

     4.6 PARTIES IN  INTEREST.  Nothing in this  Agreement,  whether  express or
implied, is intended to confer any rights or remedies under or by reason of this
Agreement  on any  persons  other than the  parties  to it and their  respective
successors and assigns, nor is anything in this Agreement intended to relieve or
discharge the obligations or liability of any third persons to any party to this
Agreement, nor shall any provision give any third party any right of subrogation
or action over against any party to this Agreement.

     4.7 ASSIGNMENT.  This Agreement shall be binding on, and shall inure to the
benefit of, the parties to it and their respective heirs, legal representatives,
successors and assigns.

                                       93

<PAGE>

     4.8  SURVIVAL OF  REPRESENTATIONS  AND  OBLIGATIONS.  All  representations,
warranties and agreements of the parties contained in this Agreement,  or in any
instrument,  certificate,  opinion or other  writing  provided  for in it, shall
survive termination of the Agreement.

     4.9 TIME. The parties agree that time is of the essence of this Agreement.

     4.10 NOTICES. All notices, requests, demands and other communications under
this  Agreement  shall be in writing and shall be deemed to have been duly given
on the date of service if served  personally  on the party whom  notice is to be
given,  on the 4th day after mailing if mailed to the party to whom notice is to
be given by registered or certified mail as follows:

         TO Company:                8221 Cretan Blue Lane
                                    Las Vegas, NV 89128-7466

         TO First Colony:           1350 East Flamingto, Suite 688
                                    Las Vegas, Nevada 89119

     4.11 GOVERNING LAW. This Agreement  shall be construed in accordance  with,
and governed by, the laws of the State of Nevada.

     4.12 VENUE.  Venue for any action brought  regarding the  interpretation or
enforcement of this Agreement shall lie exclusively in Clark County, Nevada.

     IN WITNESS WHEREOF,  the parties to this Agreement have duly executed it on
the date and year first written above.

                                    Company:

                                    CAN CAL RESOURCES LIMITED

                                    By:    /s/   Ronald D. Sloan
                                        -----------------------------

                                    First Colony:

                                    FIRST COLONY MERCHANT

                                    By:    /s/   J. M. Edwards
                                        -----------------------------

                                       94

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