Document:

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                                                            LOAN NO. 20028003003

                             ENVIRONMENTAL INDEMNITY

         THIS ENVIRONMENTAL INDEMNITY (this "Agreement"), made as of February
27, 2003, by Van Buren, L.L.C., a Delaware limited liability company having an
address of 921 Bergen Avenue, Jersey City, New Jersey, 07306 ("Borrower"), and
by Wilshire Oil Company of Texas, a Delaware corporation having an address of
921 Bergen Avenue, Jersey City, New Jersey, 07306 ( "Obligor"), jointly and
severally (Borrower and Obligor being referred to herein collectively as
"Indemnitors" and individually as an "Indemnitor"), in favor of Merrill Lynch
Mortgage Lending, Inc., a Delaware corporation, having an address at 4 World
Financial Center, 250 Vesey Street, New York, NY, 10080, its successors and
assigns ("Lender"). All capitalized terms used but not defined herein shall have
the meaning set forth in the Mortgage (as hereinafter defined).

                              W I T N E S S E T H:

         WHEREAS, concurrently herewith, Lender has extended to Borrower a loan
in the original principal amount of TWO MILLION ONE HUNDRED THOUSAND DOLLARS ($
2,100,000) (the "Loan"), which is evidenced by the Note in said amount and
secured by (i) that certain Multifamily Deed of Trust, Security Agreement,
Assignment of Rents and Fixture Filing, dated of even date herewith, given by
Borrower to First American Title Insurance Company, as trustee, for the benefit
of Lender (the "Mortgage"), encumbering, among other things, that certain real
property situated in the County of Pima, State of Arizona, as more particularly
described on Exhibit A attached hereto, together with all buildings and
improvements now or hereafter located thereon (collectively, the "Property") and
(ii) the other Loan Documents; and

         WHEREAS, as a condition to making the Loan, Lender has required that
Indemnitors indemnify the Indemnified Parties (as hereinafter defined) with
respect to environmental conditions or liabilities on, in, under or affecting
the Property as hereinafter set forth; and

         WHEREAS, Obligor is an affiliate of Borrower and will derive
substantial economic benefit from Lender making the Loan to Borrower;

         NOW, THEREFORE, to induce Lender to extend the Loan to Borrower and in
consideration of the foregoing premises and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
Indemnitors hereby covenant and agree for the benefit of the Indemnified Parties
as follows:

         1. Definitions.

The following terms shall have the following meanings when used herein:

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         (a) "Indemnified Party" shall mean Lender, any subsequent holder of the
Loan and each of their officers, directors, shareholders, principals, partners,
representatives, employees, agents, successors and assigns.

         (b) "Costs" shall mean, collectively, all liens, damages, losses,
fines, liabilities (including, without limitation, any strict liability),
obligations, settlements, penalties, assessments, citations, directives, claims,
litigations, demands, response costs (including, without limitation,
investigation, removal, remediation, mitigation, containment, post-closure and
monitoring costs), defenses, judgments, suits, proceedings, costs, laboratory
fees, disbursements and expenses of any kind or nature whatsoever (including,
without limitation, reasonable attorneys', consultants' and experts' fees and
disbursements). Costs shall also include any future reduction in sales price of,
or unmarketability and consequent inability of Lender to foreclose on or
otherwise sell, the Property and the lost opportunity costs resulting from the
inability of Lender to sell or dispose of its interest in the Property, all as a
consequence of any event described in Paragraph 2 herein.

         (c) "Environmental Laws" shall mean, collectively, any local, state or
federal law, rule or regulation or common law duty pertaining to the
environment, natural resources, pollution, health, safety or clean-up including,
without limitation, the Comprehensive Environmental Response, Compensation and
Liability Act of 1980 (42 U.S.C. ss. 9601 et seq.), the Resource Conservation
and Recovery Act of 1976 (42 U.S.C. ss. 6901 et seq.), the Federal Water
Pollution Control Act (33 U.S.C. ss. 1251 et seq.), the Hazardous Materials
Transportation Act (49 U.S.C. ss. 5101 et seq.), the Clean Air Act (42 U.S.C.
ss. 7401 et seq.), the Federal Insecticide, Fungicide and Rodenticide Act (7
U.S.C. ss. 136 et seq.), the Emergency Planning and Community Right-to-Know Act
(42 U.S.C. ss. 11001 et seq.), the Occupational Safety and Health Act (29 U.S.C.
ss. 651 et seq.), the Residential Lead-Based Paint Hazard Reduction Act (42
U.S.C. ss. 4851 et seq.), any analogous state or local laws, any amendments
thereto, and the regulations promulgated pursuant to said laws, together with
all amendments from time to time to any of the foregoing.

         (d) "Hazardous Substances" shall mean, collectively, any hazardous,
toxic or harmful substances, wastes, materials, pollutants or contaminants
(including, without limitation, asbestos, polychlorinated biphenyls ("PCB's"),
petroleum or petroleum by-products or wastes, flammable explosives, radioactive
materials, infectious substances, materials containing lead-based paint or raw
materials which include hazardous constituents) or any other substances or
materials which are identified under or regulated by Environmental Laws.

         (e) "Tenants" shall mean all tenants, lessees, subtenants and other
occupants of the Property.

         2. Indemnity.

         (a) Indemnitors hereby assume liability for, and agree to pay, protect,
defend, indemnify and save all Indemnified Parties harmless from and against any
and all Costs which may be imposed upon, incurred by or asserted or awarded
against any of the Indemnified Parties or the Property, and arising directly or
indirectly from: (i) the violation or alleged violation of any Environmental
Laws relating to or affecting the Property, whether or not caused by or within
the control of Indemnitors; (ii) the actual or alleged presence, release or
threat of release of, or exposure to any Hazardous Substances on, in, under or
affecting all or any portion of the Property or any surrounding areas,
regardless of whether or not caused by or within the control of Indemnitors;
(iii) any actual or alleged personal injury or property damage arising out of or
related to Hazardous Substances and the Property; (iv) any acts or omissions
that exacerbate an existing condition at the Property or that give rise to
liability under any Environmental Law; (v) the failure by Indemnitors to comply
fully with the terms and conditions of this Agreement; (vi) the breach of any
representation or warranty contained in this Agreement; (vii) the enforcement of
this Agreement; or (viii) assessment, investigation, containment, monitoring,
remediation and/or removal of any and all Hazardous Substances from the Property
or any surrounding areas, and costs incurred to comply with Environmental Laws
in connection with the Property or any surrounding areas.

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         (b) Notwithstanding any provision hereof to the contrary, Indemnitors
shall have no liability under this Agreement with respect to Costs relating to
Hazardous Substances which are initially placed on, in or under the Property
after the earlier of (i) Lender taking actual possession and control of the
Property following an Event of Default, and (ii) Lender completing a foreclosure
or other sale pursuant to which Lender takes title to the Property. Indemnitors
shall have no liability under this Agreement to any Indemnified Party with
respect to Costs which result directly and solely from such Indemnified Party's
willful misconduct or gross negligence.

         (c) Indemnitors' obligation to defend the Indemnified Parties hereunder
shall include defense at both the trial and appellate levels and shall be with
attorneys, consultants and experts acceptable to the Indemnified Party.

         3. Representations Regarding Hazardous Substances. Indemnitors hereby
represent and warrant to and covenant and agree with the Indemnified Parties as
follows:

                  (a) The Property and all businesses or operations conducted
thereon are in compliance with all Environmental Laws;

                  (b) No Hazardous Substances have been disposed of on or
released (as used herein, "release" shall have the meaning provided in 42 U.S.C.
ss. 9601(22)) at, onto or under the Property by any Indemnitor or, to the
Indemnitors' best knowledge, after due inquiry and investigation, by any other
Person;

                  (c) No Hazardous Substances are located in, on or under, or
have been handled, generated, stored, processed or discharged from the Property
by any Indemnitor or, to the Indemnitors' best knowledge, after due inquiry and
investigation, by any other Person, except for those substances used by Borrower
or tenants of the Property in the ordinary course of their business in
compliance with all Environmental Laws and not reasonably expected to give rise
to liability under Environmental Laws;

                  (d) The Property is not subject to any private or governmental
lien or judicial or administrative notice or action relating to or arising under
Environmental Laws;

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                  (e) There are no underground storage receptacles or surface
impoundments, landfills or dumps for Hazardous Substances on the Property;

                  (f) Indemnitors have received no notice of, and to the best of
Indemnitors' knowledge and belief, there exists no investigation, action,
proceeding or claim by any agency, authority or unit of government or by any
third party which could result in any liability, penalty, sanction or judgment
under any Environmental Laws with respect to any condition, use or operation of
the Property, nor do Indemnitors know of any basis for any of the foregoing;

                  (g) Except as previously disclosed to Lender in writing, there
is no asbestos-containing material or lead-based paint at the Property nor are
there any PCB's, endangered species' habitats or wetlands at the Property;

                  (h) Indemnitors have received no notice that, and to the best
of Indemnitors' knowledge and belief, there has been no claim by any party that,
any use, operation or condition of the Property has caused any nuisance or any
other liability or adverse condition on any other property nor do Indemnitors
know of any basis for such a claim;

                  (i) Except as previously disclosed in writing to Lender,
Indemnitor has not knowingly waived or released any Person's liability with
regard to Hazardous Substances in, on, under or around the Property nor retained
or assumed, contractually or otherwise, any other Person's liability relative to
Hazardous Substances or any claim, action or proceeding relating thereto; and

                  (j) Neither the Property nor any other property owned by
Borrower (i) is included or, to Indemnitor's knowledge, after due inquiry,
proposed for inclusion on the National Priorities List issued pursuant to CERCLA
by the United States Environmental Protection Agency (the "EPA") or on any of
the inventories of other potential "Problem" sites issued by the EPA or other
applicable Governmental Authority nor (ii) otherwise identified by the EPA as a
potential CERCLA site or included or, to Indemnitor's knowledge, after due
inquiry, proposed for inclusion on any such list or inventory issued pursuant to
any other Environmental Law or issued by any other Governmental Authority.

         4. Covenants of Indemnitors.

                  (a) Indemnitors shall, and shall cause all property managers,
agents, employees and tenants of the Property to: (i) comply with all applicable
Environmental Laws applicable to the Property, (ii) keep or cause the Property
to be kept free from Hazardous Substances (except those substances used by
Borrower or tenants of the Property in the ordinary course of their business),
in compliance with, and not likely to give rise to liability under Environmental
Laws, (iii) not install or use, or permit the installation or use of, any
underground receptacles containing Hazardous Substances on the Property, (iv)
expressly prohibit the use, generation, handling, storage, production, release,
processing and disposal of Hazardous Substances by all future tenants of the
Property (except those substances used by such tenants in the ordinary course of
their business, in compliance with, and not likely to give rise to liability
under, Environmental Laws) and use all reasonable efforts to prevent existing
tenants and other permitted occupants of the Property from taking any such
actions, (v) in any event, not install on the Property or permit to be installed
on the Property PCB's, urea formaldehyde insulation, asbestos or any substance
containing asbestos or any material containing lead-based paint, and (vi)
prohibit the disposal and/or release of any Hazardous Substances on, at,
beneath, or near the Property.

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                  (b) Indemnitors immediately shall notify Lender in writing
should any Indemnitor become aware of (i) any release of Hazardous Substances,
or other actual or potential environmental problem or liability, with respect to
or affecting the Property, (ii) any lien, action or notice of violation or
potential liability affecting the Property or Borrower arising under any
Environmental Law, (iii) the institution of any investigation, inquiry or
proceeding concerning Borrower or the Property pursuant to any Environmental Law
or otherwise relating to Hazardous Substances, or (iv) the discovery of any
occurrence, condition or state of facts which would render any representation or
warranty contained in this Agreement incorrect in any respect if made at the
time of such discovery. Indemnitor shall promptly transmit to Lender copies of
any and all citations, orders, notices or, upon written request of Lender, other
communications relating to any of the foregoing provisions of this paragraph.

                  (c) Regardless of the source of contamination, Indemnitors
shall, at their own expense, promptly take or cause to be taken all actions
necessary or advisable for the clean-up of the Property and other property
affected by contamination in, on, under or at the Property, including, without
limitation, all investigative, monitoring, removal, containment and remedial
actions required of Borrower in accordance with all applicable Environmental
Laws (and in all events in a manner satisfactory to the applicable Governmental
Authority and Lender). Indemnitor shall further pay or cause to be paid, at no
expense to any Indemnified Party, all clean-up, administrative and enforcement
costs of applicable governmental agencies which may be asserted against the
Property. In the event Indemnitors fail to do so, or following an Event of
Default, Lender may, at its sole election, cause the Property or other affected
property to be freed from any Hazardous Substances or otherwise brought into
compliance with Environmental Laws and any cost incurred in connection therewith
shall be included in Costs. Borrower hereby grants to Lender access to the
Property and an irrevocable license to remove any items deemed by Lender to be
Hazardous Substances and to do all things Lender shall deem necessary to bring
the Property into compliance with Environmental Laws. However, Lender shall have
no obligation to inspect or clean up any Hazardous Substances. Lender shall not
be deemed a generator of any Hazardous Substances removed from the Property.

                  (d) Upon the request of Lender, at any time (i) after the
occurrence of a default under this Agreement or an Event of Default or (ii)
Lender has reasonable grounds to believe that (x) Hazardous Substances are or
have been released, stored or disposed of on or around the Property or (y) the
Property may be in violation of Environmental Laws, Indemnitors shall cause an
investigation or audit of the Property to be undertaken by a hydrogeologist or
environmental engineer or other appropriate consultant approved by Lender to
determine whether any Hazardous Substances are located on, at, beneath, or near
the Property and/or whether the Property is in compliance with Environmental
Laws. The scope of any investigation or audit shall be approved by Lender. If
Indemnitors fail to provide reports of such investigation or audit within thirty
(30) days after such request, Lender may, but shall have no obligation to, order
the same. Borrower hereby grants to Lender and Lender's contractors access to
the Property and an irrevocable license to undertake such investigation or
audit. All costs of any such investigation or audit shall be included in Costs
and shall be paid by Indemnitors in accordance with the terms of Paragraph 5(c)
hereof.

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                  (e) In the event that a Lien is filed against the Property
pursuant to any Environmental Law, Indemnitors shall, within thirty (30) days
from the date that Borrower receives notice of such Lien (but in any event ten
(10) days prior to the date of any contemplated sale pursuant to such Lien),
either (i) pay the claim and remove the Lien from the Property, or (ii) furnish
(A) a bond satisfactory to Lender in the amount of the claim out of which the
Lien arises, (B) a cash deposit in the amount of the claim out of which the Lien
arises, (C) other security reasonably satisfactory to Lender in an amount
sufficient to discharge the claim out of which the Lien arises, or (D) security
in a form and amount satisfactory to the applicable Governmental Authority
pursuant to a valid consent or other order, and Indemnitors shall promptly
arrange for the removal of the Lien. Notwithstanding the foregoing, Indemnitors
shall prevent a sale pursuant to any Lien.

                  (f) The amount of Indemnitors' liability hereunder is
unrelated to the amount of the Loan and any failure of the Loan to be repaid in
full. The enforcement of this Agreement by the Indemnified Parties shall not be
construed by Indemnitors as an indirect attempt to recover any Loan deficiency
or loss relating to the failure of the Loan to be repaid in full. Indemnitors
acknowledge that they may have liability hereunder even if the Loan is repaid in
full by reason of a full credit bid at any foreclosure sale under the Mortgage,
and that the amount of Indemnitor's liability hereunder could exceed the entire
amount paid by Borrower for the Property.

         5. Indemnification Procedures.

                  (a) If any action, proceeding, litigation or claim shall be
brought or asserted against any Indemnified Party for any matter which the
Indemnified Parties are indemnified hereunder (each, a "Claim"), Indemnified
Party shall notify Indemnitors in writing thereof and Indemnitors shall promptly
assume the defense thereof, including, without limitation, the employment of
counsel acceptable to such Indemnified Party and the negotiation of any
settlement. Any failure of such Indemnified Party to notify Indemnitors of such
matter shall not impair or reduce the obligations of Indemnitors hereunder. The
Indemnified Parties shall have the right, at the expense of Indemnitors (which
expense shall be included in Costs), if an Indemnified Party has reason to
believe that its interests are not being adequately represented or diverge from
other interests being represented by such counsel, to employ separate counsel in
any such action and to participate in the defense thereof. In the event
Indemnitors shall fail to discharge or undertake to defend any Indemnified Party
against any Claim, such failure shall constitute an Event of Default and the
Indemnified Party may, at its sole election, defend or settle such Claim. The
liability of Indemnitors to such Indemnified Party hereunder for any settlement
by such Indemnified Party shall be conclusively established by any settlement
entered into by the Indemnified Party in good faith, and such good faith shall
be conclusively established if the settlement is made on the advice of
independent legal counsel for the Indemnified Party. The amount of Indemnitors'
liability hereunder shall include the settlement consideration and all other
Costs, which shall be paid by the Indemnitors as hereinafter provided. Costs
incurred in connection with a Claim shall be reimbursed by Indemnitors without
the requirement of waiting for the ultimate outcome of such Claim.

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                  (b) Indemnitors shall not, without the prior written consent
of the Indemnified Party, settle or compromise any Claim in any manner or
consent to the entry of any judgment (i) in which the claimant or plaintiff does
not unconditionally release the Indemnified Party from all liability and
obligations in respect of such Claim and obtain a dismissal of such Claim with
prejudice; or (ii) that may adversely affect the Indemnified Party (as
determined in the sole discretion of such Indemnified Party) or obligate the
Indemnified Party to pay any sum or perform any obligation.

                  (c) Indemnitors shall pay to the applicable Indemnified Party
any and all Costs within ten (10) days after written notice from such
Indemnified Party. All Costs shall be immediately reimbursable to the
Indemnified Party or, upon request of the Indemnified Party, paid directly to
the party sending a bill or other statement to the Indemnified Party. Any Costs
not paid within the aforementioned ten (10) day period shall bear interest at
the Default Rate from the date incurred until the date paid in full.

         6. Reinstatement of Obligations. If at any time all or any part of any
payment received by an Indemnified Party pursuant to this Agreement shall be
rescinded or returned for any reason whatsoever, including, without limitation,
the insolvency, bankruptcy or reorganization of any Obligor or Borrower, then
the obligations of Indemnitors hereunder shall, to the extent of such rescinded
or returned payment, be reinstated and shall continue as though such previous
payment received by the Indemnified Party had never occurred.

         7. Waivers by Indemnitors. To the extent permitted by law, Indemnitors
hereby waive and agree not to assert or take advantage of:

                  (a) Any right to require an Indemnified Party (i) to proceed
against Borrower or any other Person, (ii) to proceed against or exhaust any
security held by any Indemnified Party at any time or (iii) to pursue any other
remedy in such Indemnified Party's power or under any other agreement, in any
case, before proceeding against Indemnitors hereunder;

                  (b) Any defense that may arise by reason of the incapacity,
lack of authority, death or disability of any other Person or the failure of an
Indemnified Party to file or enforce a claim against the estate (in
administration, bankruptcy or any other proceeding) of any other Person;

                  (c) Demand, presentment for payment, protest and notice of
protest, demand, dishonor and nonpayment and all other notices except as
expressly required in the Loan Documents, including, without limitation, notice
of new or additional indebtedness or obligations or of any action or non-action
on the part of Borrower, Lender, any endorser or creditor of Borrower or of
Indemnitor or of any other Person whomsoever under this Agreement or any other
Loan Document;

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                  (d) Any defense based upon an election of remedies, splitting
a cause of action or merger of judgments by any Indemnified Party;

                  (e) Any right or claim of right to cause a marshaling of the
assets of Indemnitors;

                  (f) Any principle or provision of law, statutory or otherwise,
which is or might be in conflict with the terms and provisions of this
Agreement;

                  (g) Any duty on the part of any Indemnified Party to disclose
to Indemnitors any facts such Indemnified Party may now or hereafter know about
Borrower or the Property, regardless of whether such Indemnified Party (i) has
reason to believe that any such facts materially increase the risk beyond that
which Indemnitors intend to assume, (ii) has reason to believe that such facts
are unknown to Indemnitors or (iii) has a reasonable opportunity to communicate
such facts to Indemnitors, it being understood and agreed that Indemnitors are
fully responsible for being informed of the financial condition of Borrower, the
condition of the Property and of all other circumstances bearing on the risk
that liability may be incurred by Indemnitors hereunder;

                  (h) Any invalidity, irregularity or unenforceability, in whole
or in part, of any one or more of the Loan Documents;

                  (i) Any lack of commercial reasonableness in dealing with the
collateral for the Loan;

                  (j) Any deficiencies in the collateral for the Loan or any
deficiency in the ability of Lender to collect or to obtain performance from any
Persons now or hereafter liable for the payment and performance of any
obligation hereby guaranteed;

                  (k) An assertion or claim that the automatic stay provided by
11 U.S.C. ss. 362 (arising upon the voluntary or involuntary bankruptcy
proceeding of Borrower) or any other stay provided under any other debtor relief
law (whether statutory, common law, case law or otherwise) of any jurisdiction
whatsoever, now or hereafter in effect, which may be or become applicable, shall
operate or be interpreted to stay, interdict, condition, reduce or inhibit the
ability of Lender to enforce any of its rights, whether now existing or
hereafter acquired, which Lender may have against Obligor, the Borrower or the
collateral for the Loan;

                  (l) Any modifications of the Loan Documents or any obligation
of Borrower relating to the Loan by operation of law or by action of any court,
whether pursuant to the Bankruptcy Reform Act of 1978, as amended, or any other
debtor relief law (whether statutory, common law, case law or otherwise) of any
jurisdiction whatsoever, now or hereafter in effect, or otherwise;

                  (m) Any action, occurrence, event or matter consented to by
Indemnitors under Section 8(k) hereof, under any other provision hereof, or
otherwise;

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                  (n) The benefits of any statutory or other provision limiting
the liability of a surety, including without limitation the provisions of A.R.S.
Sections 12-1641, et seq. and Rule 17(f) of the Arizona Rules of Civil
Procedure; and

                  (o) Any benefit of, and any right to participate in, any
security now or hereafter held by Lender and, until payment and performance of
all of Indemnitor's obligations hereunder, any right of subrogation.

         Borrower and Obligor covenant and agree that upon the commencement of a
voluntary or involuntary bankruptcy proceeding by or against Borrower, neither
Borrower nor Obligor shall seek a supplemental stay or otherwise pursuant to 11
U.S.C. ss. 105 or any other provision of the Bankruptcy Reform Act of 1978, as
amended, or any other debtor relief law (whether statutory, common law, case
law, or otherwise) of any jurisdiction whatsoever, now or hereafter in effect,
which may be or become applicable, to stay, interdict, condition, reduce or
inhibit the ability of Lender to enforce any rights of Lender against Borrower
or Obligor by virtue of this Agreement or otherwise.

         8. General Provisions.

                  (a) Rules of Construction. This Agreement is governed by and
incorporates by reference the Rules of Construction set forth in Article XV of
the Mortgage, which shall have the same force and effect as if fully set forth
herein.

                  (b) Full Recourse. Notwithstanding any provision of any other
Loan Document to the contrary, all of the terms and provisions of this Agreement
are recourse obligations of Indemnitors and not restricted by any limitation on
personal liability.

                  (c) Right to Indemnification Not Affected by Knowledge. An
Indemnified Party's right to defense, indemnification, payment of Costs or other
rights and remedies pursuant to this Agreement shall not be diminished or
affected in any way by any investigation conducted by or on behalf of such
Indemnified Party or other knowledge acquired (or capable of being acquired) by
such Indemnified Party through any means at any time.

                  (d) Reliance. Indemnitors hereby acknowledge that Lender would
not make the Loan without being able to rely upon the covenants and obligations
of Indemnitors set forth herein. Accordingly, Indemnitors intentionally and
unconditionally enter into this Agreement.

                  (e) Obligations Unsecured. Indemnitors acknowledge that even
though the representations, warranties and covenants of Indemnitors contained
herein may be identical or substantially similar to those of Borrower set forth
in the Mortgage, the obligations of Indemnitors hereunder are independent
obligations which are not secured by the Mortgage or other Loan Documents. The
Indemnitors further acknowledge that it is the intent of Lender to create
separate obligations of Indemnitors hereunder which can be enforced against
Indemnitors without regard to the existence of the Mortgage or other Loan
Documents or the liens or security interests created therein.

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                  (f) Survival. This Agreement shall be deemed to be continuing
in nature, remain in full force and effect and survive indefinitely,
notwithstanding the exercise of any remedy by Lender under the Mortgage or any
of the other Loan Documents, including, without limitation, any foreclosure or
deed in lieu thereof, even if, as a part of such remedy, the Loan is paid or
satisfied in full.

                  (g) Subordination; No Recourse Against Lender. Obligor hereby
subordinates any and all indebtedness of Borrower now or hereafter owed to
Obligor to all indebtedness of Borrower to Lender. Obligor shall not demand or
accept any payment of principal or interest from Borrower, shall not claim any
offset or other reduction of Obligor's obligations hereunder because of any such
indebtedness and shall not take any action to obtain any of the collateral for
the Loan. Further, Indemnitors shall not have any right of recourse against any
Indemnified Party by reason of any action such Indemnified Party may take or
omit to take under the provisions of this Agreement or any other Loan Documents.

                  (h) Reservation of Rights. Nothing contained in this Agreement
shall prevent or in any way diminish or interfere with any rights or remedies,
including, without limitation, the right to cost recovery or contribution, which
any Indemnified Party may have against either Indemnitor or any other party
under the Comprehensive Environmental Response, Compensation and Liability Act
of 1980 (codified at Title 42 U.S.C. ss. 9601 et seq.), as it may be amended
from time to time, or any other applicable federal, state or local laws, all
such rights being hereby expressly reserved.

                  (i) Financial Statements. Each Indemnitor hereby agrees to
furnish Lender promptly upon demand by Lender current and dated financial
statements detailing the assets and liabilities of such Indemnitor, certified by
such Indemnitor, in form and substance acceptable to Lender. Each Indemnitor
hereby warrants and represents to Lender that any and all balance sheets, net
worth statements and other financial data which have heretofore been given or
may hereafter be given to Lender with respect to such Indemnitor did or will at
the time of such delivery fairly and accurately present the financial condition
of such Indemnitor.

                  (j) Nature of Obligations. The obligations of Indemnitors
hereunder are independent of the obligations of Borrower under the other Loan
Documents. In the event of any default hereunder, a separate action or actions
may be brought and prosecuted against Indemnitors whether or not Indemnitors are
the alter ego of Borrower and whether or not Borrower is joined therein or a
separate action or actions are brought against Borrower. Lender's rights
hereunder shall not be exhausted until all of the obligations of Indemnitor
hereunder have been fully paid and performed.

                  (k) No Limitation on Liability. Indemnitors hereby consent and
agree that any of the following may occur from time to time, without notice or
consideration to, or consent of, Indemnitors, and the liability of Indemnitors
hereunder shall remain unconditional and absolute and shall in no way be
impaired or limited by reason thereof:

         (i) any extension of time for performance required by any of the Loan
Documents or otherwise granted by Lender or any extension or renewal of the
Note;

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         (ii) any sale, assignment or foreclosure of the Note, the Mortgage or
any of the other Loan Documents or any sale or transfer of the Property;

         (iii) any change in the composition of Borrower, including, without
limitation, the voluntary or involuntary withdrawal or removal of Indemnitors
from any current or future position of ownership, management or control of
Borrower;

         (iv) any representations and warranties made by any Indemnitor herein
or by Borrower in any of the Loan Documents;

         (v) the release of Borrower or of any other Person from performance or
observance of any of the agreements, covenants, terms or conditions contained in
any of the Loan Documents by operation of law, Lender's voluntary act or
otherwise;

         (vi) the release or substitution in whole or in part of any security
for the Loan;

         (vii) Lender's failure to record the Mortgage or to file any financing
statement (or Lender's improper recording or filing thereof) or to otherwise
perfect, protect, secure or insure any lien or security interest given as
security for the Loan;

         (viii) the modification of the terms of any one or more of the Loan
Documents; or

         (ix) the taking or failure to take any action of any type whatsoever.
No such action which Lender shall take or fail to take in connection with the
Loan Documents or any collateral for the Loan, nor any course of dealing with
Borrower or any other Person, shall limit, impair or release Indemnitor's
obligations hereunder, affect this Agreement in any way or afford Indemnitors
any recourse against any Indemnified Party. Nothing contained in this Section
shall be construed to require any Indemnified Party to take or refrain from
taking any action referred to herein.

                  (l) Representations. Each Indemnitor represents and warrants
that there is no bankruptcy, reorganization or insolvency proceeding pending or,
to its knowledge, threatened against it.

                  (m) Attorneys' Fees. In the event it is necessary for any
Indemnified Party to retain the services of an attorney or any other consultants
in order to enforce this Agreement, or any portion hereof, Indemnitors agree to
pay to such Indemnified Party any and all costs and expenses, including, without
limitation, reasonable attorneys' and consultants' fees and disbursements,
incurred by such Indemnified Party as a result thereof and all such amounts
shall be included in Costs. In the event of legal proceedings, court costs and
attorneys' fees shall be set by the court and not by jury and shall be included
in any judgment obtained by Lender.

                  (n) Successive Actions. A separate right of action hereunder
shall arise each time an Indemnified Party acquires knowledge of any matter
indemnified or guaranteed by Indemnitors hereunder. Separate and successive
actions may be brought hereunder to enforce any of the provisions hereof at any
time and from time to time and no action hereunder shall preclude any subsequent
action.

                                      -11-
<PAGE>

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

                                    BORROWER:

                                    Van Buren, L.L.C.
                                    a Delaware limited liability company

                                    By: Van Buren Holding, Inc.
                                        a Delaware corporation
                                        Its Managing Member

                                    By: _____________________________
                                        Philip G. Kupperman
                                        Its President

                                    OBLIGOR:

                                    Wilshire Oil Company of Texas
                                    a Delaware corporation

                                    __________________________________
                                    By:
                                    Its:

[Since Arizona is a community property state, the spouse of a married individual
should sign as set forth below. In addition, notary acknowledgment block should
be provided.] Delete if not applicable:

                                    By:_________________________________________
                                                           (signature of spouse)
                                    (spouse's name), solely for the purpose of
                                    binding and obligating the marital community
                                    with (guarantor's, indemnitor's or surety's
                                    name) and their community assets, but not
                                    with respect to (his/her) sole and separate
                                    property.

                                      -12-
<PAGE>

                                 Acknowledgment
STATE OF ARIZONA)
                )ss.
County of       )

         The foregoing instrument was acknowledged before me this _____ day of
_____________, 200__, by ___________________________.

         IN WITNESS WHEREOF, I hereunto set my hand and official seal.

                               _________________________
                               Notary Public

My commission expires:

________________________

                                      -13-
<PAGE>

STATE OF ARIZONA )
                 )ss.
County of ______ )

                                    The foregoing instrument was acknowledged
before me this _____ day of ___________, 2003, by Philip G. Kupperman, the
President of VAN BUREN HOLDING, INC., a Delaware corporation, Managing Member of
VAN BUREN, L.L.C., a Delaware limited liability company, on behalf of that
limited liability company.

                                    IN WITNESS WHEREOF, I hereunto set my hand
and official seal.

                               _________________________
                               Notary Public

My commission expires:

________________________

                                      -14-
<PAGE>

STATE OF ARIZONA)
                )ss.
County of ______)

                                    The foregoing instrument was acknowledged
before me this _____ day of __________, 2003, by __________________________, the
___________ of WILSHIRE OIL COMPANY OF TEXAS, a Delaware corporation, on behalf
of that corporation.

                                    IN WITNESS WHEREOF, I hereunto set my hand
and official seal.

                               _________________________
                               Notary Public

My commission expires:

________________________

                                      -15-
<PAGE>

                                    EXHIBIT A

                               LEGAL DESCRIPTION*

                                                                No. 630-4062826

The North 255 feet of the South 270 feet of Lot 6, in Block 27, and the North
255 of the South 270 feet of Lot 7, in Block 27 of MITMAN ADDITION, according
to the plan of record in the office of the County Recorder of Pima County,
Arizona, in Book 4 of Maps, Page 43.

(Said property known as Assessors Parcel No. 127-03-541A)

                                      -16-<PAGE>
                                                            LOAN NO. 20028003003

                        INDEMNITY AND GUARANTY AGREEMENT

         THIS INDEMNITY AND GUARANTY AGREEMENT (this "Agreement"), made as of
February 27, 2003, by Wilshire Oil Company of Texas, a Delaware corporation
having an address of 921 Bergen Avenue, Jersey City, New Jersey, 07306
("Indemnitor") in favor of Merrill Lynch Mortgage Lending, Inc., a Delaware
corporation, having an address at 4 World Financial Center, 250 Vesey Street,
New York, NY, 10080 ("Lender"). All capitalized terms used but not defined
herein shall have the meaning set forth in the Mortgage (as hereinafter
defined).

                              W I T N E S S E T H:

         WHEREAS, concurrently herewith, Lender has extended to Van Buren,
L.L.C., a Delaware limited liability company (the "Borrower") a loan in the
original principal amount of TWO MILLION ONE HUNDRED THOUSAND DOLLARS ($
2,100,000) (the "Loan"), which is evidenced by the Note in said amount and
secured by (i) that certain Multifamily Deed of Trust, Security Agreement,
Assignment of Rents and Fixture Filing, dated the date hereof, given by Borrower
to First American Title Insurance Company, as trustee, for the benefit of
Lender, encumbering the Property commonly known as Van Buren Apartments in the
County of Pima and the State of Arizona (the "Mortgage") and (ii) the other Loan
Documents;

         WHEREAS, as a condition to making the Loan to Borrower, Lender has
required that Indemnitor indemnify Lender from and against and guarantee payment
to Lender of those items for which Borrower is personally liable and for which
Lender has recourse against Borrower under the terms of the Note and the
Mortgage; and

         WHEREAS, Indemnitor is an Affiliate of Borrower and will derive
substantial economic benefit from Lender making the Loan to Borrower and
therefore agrees to provide such indemnification;

         NOW, THEREFORE, to induce Lender to extend the Loan to Borrower and in
consideration of the foregoing premises and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
Indemnitor hereby covenants and agrees for the benefit of Lender, as follows:

         1. Indemnity and Guaranty. Indemnitor hereby assumes liability for,
guarantees payment to Lender of, agrees to pay, protect, defend and save Lender
harmless and indemnifies Lender from and against, any and all liabilities,
obligations, losses, damages, costs and expenses (including, without limitation,
reasonable attorneys' fees, costs and disbursements), causes of action, suits,
claims, demands and judgments paid, imposed upon Lender or to which Lender may
be subject, or any reduction in amounts recovered by Lender directly or
indirectly (including, without limitation, any future reduction in sales price
of, or unmarketability and consequent inability of Lender to foreclose on or
otherwise sell, the Property and the lost opportunity costs resulting from the
inability of Lender to sell or dispose of its interest in the Property)
(collectively, "Costs") as a result of Borrower, or any Affiliate, indemnitor,
guarantor, agent or employee of Borrower:

<PAGE>
         (i)          misapplying or misappropriating any proceeds of insurance
                      policies or condemnation awards in connection with the
                      Property;

         (ii)         misapplying (under any lease, the Mortgage or any other
                      agreement) or misappropriating any Rents, security
                      deposits or other refundable deposits paid to or held by
                      or on behalf of Lender;

         (iii)        receiving any Rent or other payments under Leases more
                      than one month in advance;

         (iv)         committing waste, arson or damage to the Property as a
                      result of intentional misconduct or gross negligence;

         (v)          removing any Equipment or other Property in violation of
                      the Mortgage or other Loan Documents;

         (vi)         committing fraud or making any material misrepresentation
                      in connection with the Loan or the ownership, use,
                      operation or management of the Property;

         (vii)        transferring or encumbering the Property in violation of
                      Article VIII of the Mortgage; or

         (viii)       failing to maintain the existence of Borrower as a
                      Special-Purpose Entity or otherwise failing to comply with
                      Article XII of the Mortgage.

         This is a guaranty of payment and performance and not of collection.
The liability of Indemnitor under this Agreement shall be direct and immediate
and not conditional or contingent upon the pursuit of any remedies against
Borrower, any guarantor, any other Person nor against the collateral for the
Loan. If the obligations guaranteed hereby are partially paid or discharged by
reason of the exercise of any of the remedies available to Lender, Indemnitor
shall remain liable for all remaining obligations guaranteed hereby, even though
any rights which Indemnitor may have against Borrower may be destroyed or
diminished by the exercise of any such remedy.

         2. Indemnification Procedures.

                  (a) If any action, proceeding, litigation, claim, loss,
liability or other Cost shall be brought or asserted against Lender for any
matter which Lender is indemnified hereunder (each, a "Claim"), Lender shall
notify Indemnitor in writing thereof and Indemnitor shall promptly assume the
defense thereof, including, without limitation, the employment of counsel
acceptable to Lender and the negotiation of any settlement. Any failure of
Lender to notify Indemnitor of such matter shall not impair or reduce the
obligations of Indemnitor hereunder. Lender shall have the right, at the expense
of Indemnitor (which expense shall be included in Costs), to employ separate
counsel in connection with any Claim and to participate in the defense thereof.
In the event Indemnitor shall fail to discharge or undertake to defend Lender
against any Claim, such failure shall constitute an Event of Default and Lender
may, at its sole election, defend or settle such Claim. The liability of
Indemnitor to Lender hereunder shall be conclusively established by any
settlement entered into by Lender in good faith, and such good faith shall be
conclusively established if the settlement is made on the advice of independent
legal counsel for Lender. The amount of Indemnitor's liability hereunder shall
include the settlement consideration and all other Costs, which shall be paid by
Indemnitor as hereinafter provided.

                                       2
<PAGE>

                  (b) Indemnitor shall not, without the prior written consent of
Lender, settle or compromise any Claim in any manner or consent to the entry of
any judgment (i) in which the claimant or plaintiff does not unconditionally
release Lender from all liability in respect of such Claim and obtain a
dismissal of such Claim with prejudice; or (ii) that may adversely affect Lender
(as determined by Lender) or obligate Lender to pay any sum or perform any
obligation. Any release of Lender shall be in writing and shall be in form,
scope and substance satisfactory to Lender.

                  (c) Indemnitor shall pay to Lender any and all Costs within
ten (10) days after written notice from Lender itemizing the amounts thereof
incurred to the date of such notice. All Costs shall be immediately reimbursable
to Lender, without any requirement of waiting for the ultimate outcome of any
Claim. Any Costs not paid within the aforementioned ten (10) day period shall
bear interest at the Default Rate from the date incurred until the date paid in
full.

         3. Reinstatement of Obligations. If at any time all or any part of any
payment received by Lender pursuant to this Agreement shall be rescinded or
returned for any reason whatsoever including, without limitation, the
insolvency, bankruptcy or reorganization of Indemnitor or Borrower, then the
obligations of Indemnitor hereunder shall, to the extent of such rescinded or
returned payment, be reinstated and shall continue as though such previous
payment received by Lender had never occurred.

         4. Waivers by Indemnitor. To the extent permitted by law, Indemnitor
hereby waives and agrees not to assert or take advantage of:

                  (a) Any right to require Lender (i) to proceed against
Borrower or any other Person, (ii) to proceed against or exhaust any security
held by Lender at any time or (iii) to pursue any other remedy in Lender's power
or under any other agreement, in any case, before proceeding against Indemnitor
hereunder;

                  (b) Any defense that may arise by reason of the incapacity,
lack of authority, death or disability of any other Person or the failure of
Lender to file or enforce a claim against the estate (in administration,
bankruptcy or any other proceeding) of any other Person;

                  (c) Demand, presentment for payment, protest and notice of
protest, demand, dishonor and nonpayment and all other notices except as
expressly required in the Loan Documents including, without limitation, notice
of new or additional indebtedness or obligations or of any action or non-action
on the part of Borrower, Lender, any endorser or creditor of Borrower or of
Indemnitor or on the part of any other Person whomsoever under this Agreement or
any other Loan Document;

                                       3
<PAGE>

                  (d) Any defense based upon an election of remedies, splitting
a cause of action or merger of judgments by Lender;

                  (e) Any right or claim of right to cause a marshaling of the
assets of Indemnitor;

                  (f) Any principle or provision of law, statutory or otherwise,
which is or might be in conflict with the terms and provisions of this
Agreement;

                  (g) Any duty on the part of Lender to disclose to Indemnitor
any facts Lender may now or hereafter know about Borrower or the Property,
regardless of whether Lender (i) has reason to believe that any such facts
materially increase the risk beyond that which Indemnitor intends to assume,
(ii) has reason to believe that such facts are unknown to Indemnitor or (iii)
has a reasonable opportunity to communicate such facts to Indemnitor, it being
understood and agreed that Indemnitor is fully responsible for being and keeping
informed of the financial condition of Borrower, the financial and physical
condition of the Property and all other circumstances bearing on the risk that
liability may be incurred by Indemnitor hereunder;

                  (h) Any invalidity, irregularity or unenforceability, in whole
or in part, of any one or more of the Loan Documents;

                  (i) Any lack of commercial reasonableness in dealing with the
collateral for the Loan;

                  (j) Any deficiencies in the collateral for the Loan or any
deficiency in the ability of Lender to collect or to obtain performance from any
Persons now or hereafter liable for the payment and performance of any
obligation hereby guaranteed;

                  (k) Any claim that the automatic stay provided by 11 U.S.C.
ss. 362 (arising upon the voluntary or involuntary bankruptcy proceeding of
Borrower) or any other stay provided under any other debtor relief law (whether
statutory, common law, case law or otherwise) of any jurisdiction whatsoever,
now or hereafter in effect, which may be or become applicable, shall operate or
be interpreted to stay, interdict, condition, reduce or inhibit the ability of
Lender to enforce any of its rights, whether now existing or hereafter acquired,
which Lender may have against Indemnitor, the Borrower or the collateral for the
Loan;

                  (l) Any modifications of the Loan Documents or any obligation
of Borrower relating to the Loan by operation of law or by action of any court,
whether pursuant to the Bankruptcy Reform Act of 1978, as amended, or any other
debtor relief law (whether statutory, common law, case law or otherwise) of any
jurisdiction whatsoever, now or hereafter in effect, or otherwise;

                                       4
<PAGE>

                  (m) Any action, occurrence, event or matter consented to by
Indemnitor under Section 5(h) hereof, under any other provision hereof, or
otherwise;

                  (n) The benefits of any statutory or other provision limiting
the liability of a surety, including without limitation the provisions of A.R.S.
Sections 12-1641, et seq. and Rule 17(f) of the Arizona Rules of Civil
Procedure; and

                  (o) Any benefit of, and any right to participate in, any
security now or hereafter held by Lender, until payment and performance of all
of Indemnitor's obligations hereunder, any right of subrogation.

         Indemnitor covenants and agrees that, upon the commencement of a
voluntary or involuntary bankruptcy proceeding by or against Borrower,
Indemnitor shall not seek or cause Borrower or any other Person to seek a
supplemental stay or other relief, whether injunctive or otherwise, pursuant to
11 U.S.C. ss. 105 or any other provision of the Bankruptcy Reform Act of 1978,
as amended, or any other debtor relief law, (whether statutory, common law, case
law or otherwise) of any jurisdiction whatsoever, now or hereafter in effect,
which may be or become applicable, to stay, interdict, condition, reduce or
inhibit the ability of Lender to enforce any rights of Lender against Indemnitor
or the collateral for the Loan by virtue of this Agreement or otherwise.

         5. General Provisions.

                  (a) Rules of Construction. This Agreement is governed by and
incorporates by reference the Rules of Construction set forth in Article XV of
the Mortgage, which shall have the same force and effect as if fully set forth
herein.

                  (b) Full Recourse. Notwithstanding any provision of any other
Loan Document to the contrary, all of the terms and provisions of this Agreement
are recourse obligations of Indemnitor and not restricted by any limitation on
personal liability.

                  (c) Reliance. Indemnitor acknowledges that Lender would not
make the Loan to Borrower without being able to rely upon the covenants and
obligations of Indemnitor set forth herein. Accordingly, Indemnitor
intentionally and unconditionally enters into this Agreement.

                  (d) Survival. To the fullest extent permitted by law, this
Agreement shall be deemed to be continuing in nature and remain in full force
and effect and survive the exercise of any remedy by Lender under the Mortgage
or any of the other Loan Documents, including, without limitation, any
foreclosure or deed in lieu thereof.

                  (e) Subordination; No Recourse Against Lender. Indemnitor
hereby subordinates any and all indebtedness of Borrower now or hereafter owed
to Indemnitor to all indebtedness of Borrower to Lender. Indemnitor shall not
demand or accept any payment of principal or interest from Borrower, shall not
claim any offset or other reduction of Indemnitor's obligations hereunder
because of any such indebtedness and shall not take any action to obtain any of
the collateral for the Loan. Further, Indemnitor shall not have any right of
recourse against Lender by reason of any action Lender may take or omit to take
under the provisions of this Agreement or any other Loan Documents.

                                       5
<PAGE>

                  (f) Financial Statements. Indemnitor hereby agrees to furnish
Lender promptly upon demand by Lender current and dated financial statements
detailing the assets and liabilities of Indemnitor, certified by Indemnitor, in
form and substance acceptable to Lender. Indemnitor hereby warrants and
represents to Lender that any and all balance sheets, net worth statements and
other financial data which have been or may be given to Lender with respect to
Indemnitor did or will at the time of such delivery fairly and accurately
present the financial condition of Indemnitor.

                  (g) Nature of Obligations. The obligations of Indemnitor
hereunder are independent of the obligations of Borrower. In the event of any
default hereunder, a separate action or actions may be brought and prosecuted
against Indemnitor whether or not Indemnitor is the alter ego of Borrower and
whether or not Borrower is joined therein or a separate action or actions are
brought against Borrower. Lender's rights hereunder shall not be exhausted until
all of the obligations of Indemnitor hereunder have been fully paid and
performed.

                  (h) No Limitation on Liability. Indemnitor hereby consents and
agrees that any of the following may occur from time to time, without notice or
consideration to, or consent of, Indemnitor, and the liability of Indemnitor
hereunder shall remain unconditional and absolute and shall in no way be
impaired or limited by reason thereof:

                  (i)            any extension of time for performance required
                                 by any of the Loan Documents or otherwise
                                 granted by Lender or any extension or renewal
                                 of the Note;

                  (ii)           any sale, assignment or foreclosure of the
                                 Note, the Mortgage or any of the other Loan
                                 Documents or any sale or transfer of the
                                 Property;

                  (iii)          any change in the composition of Borrower,
                                 including, without limitation, the voluntary or
                                 involuntary withdrawal or removal of Indemnitor
                                 from any current or future position of
                                 ownership, management or control of Borrower;

                  (iv)           any representations and warranties made by
                                 Indemnitor herein or by Borrower in any of the
                                 Loan Documents;

                  (v)            the release of Borrower or of any other Person
                                 from performance or observance of any of the
                                 agreements, covenants, terms or conditions
                                 contained in any of the Loan Documents by
                                 operation of law, Lender's voluntary act or
                                 otherwise;

                                       6
<PAGE>

                  (vi)           the release or substitution in whole or in part
                                 of any security for the Loan;

                  (vii)          Lender's failure to record the Mortgage or to
                                 file any financing statement (or Lender's
                                 improper recording or filing thereof) or to
                                 otherwise perfect, protect, secure or insure
                                 any lien or security interest given as security
                                 for the Loan;

                  (viii)         the modification of the terms of any one or
                                 more of the Loan Documents; or

                  (ix)           the taking or failure to take any action of any
                                 type whatsoever. No such action which Lender
                                 shall take or fail to take in connection with
                                 the Loan Documents or any collateral for the
                                 Loan, nor any course of dealing with Borrower
                                 or any other Person, shall limit, impair or
                                 release Indemnitor's obligations hereunder,
                                 affect this Agreement in any way or afford
                                 Indemnitor any recourse against Lender. Nothing
                                 contained in this Section shall be construed to
                                 require Lender to take or refrain from taking
                                 any action referred to herein.

                  (i) Representations. Indemnitor represents and warrants that
there is no bankruptcy, reorganization or insolvency proceeding pending or, to
its knowledge, threatened against it.

                  (j) Enforcement. This Agreement is subject to enforcement at
law or in equity, including actions for damages or specific performance.

                  (k) Professionals' Fees. In the event it is necessary for
Lender to retain the services of an attorney or any other consultants in order
to enforce this Agreement, or any portion hereof, Indemnitor agrees to pay to
Lender any and all costs and expenses, including, without limitation, reasonable
attorneys' and consultants' fees and disbursements, incurred by Lender as a
result thereof and all such amounts shall be included in Costs. In the event of
legal proceedings, court costs and attorneys' fees shall be set by the court and
not by jury and shall be included in any judgment obtained by Lender.

                  (l) Successive Actions. A separate right of action hereunder
shall arise each time Lender acquires knowledge of any matter indemnified or
guaranteed by Indemnitor hereunder. Separate and successive actions may be
brought hereunder to enforce any of the provisions hereof at any time and from
time to time and no action hereunder shall preclude any subsequent action.

           [REMAINDER OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK]

                                       7
<PAGE>

         IN WITNESS WHEREOF, Indemnitor has executed this Agreement as of the
day and year first above written.

                                        Wilshire Oil Company of Texas
                                        a Delaware corporation

                                        __________________________________
                                        By:
                                        Its:

                                       8
<PAGE>

                                 Acknowledgment

STATE OF ARIZONA)
                )ss.
County of ______)

         The foregoing instrument was acknowledged before me this _____ day of
__________, 2003, by __________________________, the ___________ of WILSHIRE OIL
COMPANY OF TEXAS, a Delaware corporation, on behalf of that corporation.

         IN WITNESS WHEREOF, I hereunto set my hand and official seal.

                               _________________________
                               Notary Public

My commission expires:

________________________

                                       9

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