Document:

AMENDMENT TO CREDIT AND SECURITY
                                    AGREEMENT

          This  Amendment,  dated  as of  September  28,  2000,  is made by and
between OUR FOOD PRODUCTS GROUP,  INC., a Texas  corporation  (the  "Borrower"),
WELLS FARGO BUSINESS  CREDIT,  INC., a Minnesota  corporation (the "Lender") and
GOURMET GROUP, INC., f/k/a Seair Group, Inc., a Nevada corporation ("Gourmet").

                                    RECITALS

          WHEREAS,  the  Borrower  and the Lender have entered into a Credit and
Security  Agreement  dated  as  of  May  31,  2000  (the  "Credit   Agreement").
Capitalized  terms used in these recitals have the meanings given to them in the
Credit Agreement unless otherwise specified.

          WHEREAS,  Gourmet,  the Borrower and the  shareholders of the Borrower
have entered into an Agreement and Plan of Share  Exchange dated as of September
28, 2000 (the "Share Exchange  Agreement")  wherein Gourmet has acquired all of
the outstanding  capital stock of the Borrower from the Borrower's  shareholders
solely in exchange for  restricted  common stock of Gourmet,  making  Borrower a
wholly-owned subsidiary of Gourmet (the "Share Exchange Transaction");

          WHEREAS,  the Borrower and Gourmet have  requested that Lender consent
to the Share  Exchange  Transaction,  waive certain  covenant  defaults and make
certain amendments to the Credit Agreement.

          NOW,  THEREFORE,  in consideration of the agreements herein contained,
it is agreed as follows:

          1. DEFINED TERMS.  Capitalized  terms used in this Amendment which are
defined in the Credit Agreement shall have the same meanings as defined therein,
unless  otherwise  defined  herein.  In  addition,  Section  1.1 of  the  Credit
Agreement  is amended by adding or amending,  as the case may be, the  following
definitions:

          "Affiliate" or "Affiliates" means the Parent,  Morgan Kent Group, Inc.
     and any other Person  controlled  by,  controlling  or under common control
     with the Borrower,  including  (without  limitation)  any Subsidiary of the
     Borrower.  For  purposes  of this  definition,  "control,"  when  used with
     respect to any specified  Person,  means the power to direct the management
     and policies of such Person,  directly or indirectly,  whether  through the
     ownership of voting securities, by contract or otherwise.

          "GAAP" means generally accepted  accounting  principles,  applied on a
     basis  consistent  with the accounting  practices  applied in the financial
     statements  described in Section 5.5,

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     except for any change in accounting  practices to the extent that, due to a
     promulgation  of the  Financial  Accounting  Standards  Board  changing  or
     implementing  any new  accounting  standard,  the  Borrower  or Parent,  as
     applicable,  either (i) is required to implement  such change,  or (ii) for
     future  periods  will be  required  to and for the  current  period  may in
     accordance with generally  accepted  accounting  principles  implement such
     change,  for its financial  statements to be in conformity  with  generally
     accepted accounting  principles (any such change is herein referred to as a
     "Required  GAAP  Change"),  provided  that (1) the  Borrower or Parent,  as
     applicable,  shall fully  disclose in such  financial  statements  any such
     Required  GAAP  Change and the effects of the  Required  GAAP Change on the
     Borrower's or Parent's  income,  retained  earnings or other  accounts,  as
     applicable,  and  (2) the  Borrower's  financial  covenants  set  forth  in
     Sections 6.13,  6.14,  6.15,  6.16,  6.17, 6.18, 6.19, 6.20, 6.21, and 7.10
     shall be adjusted as necessary to reflect the effects of such Required GAAP
     Change.

          "Guarantor(s) " means Gourmet Group,  Inc., f/k/a Seair Group, Inc., a
     Nevada  corporation,  and any other Person who now or hereafter  guaranties
     the Obligations.

          "Guaranty"  means  any  guaranty  executed  in favor of the  Lender by
     Guarantor  with respect to the  Obligations,  as the same may  hereafter be
     amended, supplemented or restated from time to time.

          "Parent" shall mean Gourmet Group,  Inc.,  f/k/a Seair Group,  Inc., a
     Nevada corporation.

          "Security Documents" means this Agreement,  the Lockbox and Collection
     Account  Agreement,  the  Deed of  Trust,  the  Assignment  of  Rents,  the
     Trademark Security Agreement,  the Copyright Security  Agreement,  the Keep
     Well Agreement,  the Guaranty,  the  Subordination  Agreement and any other
     document  delivered  to  the  Lender  from  time  to  time  to  secure  the
     Obligations, as the same may hereafter be amended, supplemented or restated
     from time to time.

          2. LENDER CONSENT. On the effective date of this Amendment, the Lender
consents  to the  Share  Exchange  Transaction,  but  solely  on the  terms  and
conditions set forth in the Share Exchange Agreement as disclosed to the Lender.

          3. TRANSACTION REPRESENTATION AND WARRANTIES: Gourmet and the Borrower
each jointly and severally represents and warrants the following:

               (1) That (i) the Share Exchange Transaction has been completed in
          all  respects as of the date hereof in  accordance  with the terms and
          provisions set forth in Share Exchange  Agreement and applicable  law;
          (ii) the Borrower  currently  constitutes a wholly owned subsidiary of
          Gourmet,  and (iii) the Share Exchange

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          Agreement has not been amended or modified in any manner and continues
          in full force and effect.

               (2) That  attached  hereto as  Schedule  3(b) is a listing of the
          following, each as in existence as of the date hereof and as in effect
          after   completion  of  the  Share  Exchange   Transaction:   (a)  the
          outstanding  classes of stock of  Gourmet  and the  Borrower,  (b) the
          total  amount of issued  and  outstanding  share of  capital  stock of
          Gourmet and the  Borrower,  and (c) a listing of any and all warrants,
          options,  convertible debt and other rights and interests  relating to
          the  issuance  of  any  capital  stock  of  Gourmet,  together  with a
          calculation  of the number of shares to be issued upon  conversion  or
          exercise; and as of the date hereof no warrants, options,  convertible
          debt or similar  interest for the issuance of any capital stock of the
          Borrower continue to exist.

               (3) That Morgan Kent Group,  Inc. ("MKGI") owns not less than 60%
          of the outstanding voting capital stock of Gourmet.

               (4)  That the  chief  executive  office  and  principal  place of
          business of both Gourmet and Borrower is located at #1 Chisholm Trail,
          Buda, Texas 78610.

               (5) That there has been no change in the senior management of the
          Borrower  referred to in Section 7.19 of the Credit Agreement and that
          the current chief executive officer, chief financial officer and chief
          operating officer for Gourmet is Fredrick  Schulman,  Kimberly Eckert,
          and Harry John Trube respectively.

          4. AMENDMENTS TO REPRESENTATIONS AND WARRANTIES.

               1. The  following  sections of Article V of the Credit  Agreement
are hereby deleted in their entirety and replaced with the following:

                    Section  5.1  CORPORATE  EXISTENCE  AND POWER;  NAME;  CHIEF
          EXECUTIVE   OFFICE;    INVENTORY   AND   EQUIPMENT   LOCATIONS;    TAX
          IDENTIFICATION NUMBER. The Borrower is a corporation,  duly organized,
          validly  existing and in good standing  under the laws of the State of
          Texas and is duly  licensed or qualified  to transact  business in all
          jurisdictions  where the character of the property  owned or leased or
          the nature of the business  transacted  by it makes such  licensing or
          qualification  necessary.  The  Borrower has all  requisite  power and
          authority, corporate or otherwise, to conduct its business, to own its
          properties  and to execute  and  deliver,  and to  perform  all of its
          obligations  under,  the Loan  Documents.  During its  existence,  the
          Borrower  has done  business  solely  under  the  names  set  forth in
          Schedule 5.1 hereto. The chief executive office and principal place of
          business of the  Borrower and the Parent is located at the address set
          forth in Schedule  5.1  hereto,  and all of their  respective  records
          relating to its business or the  Collateral are kept at that location.

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          All  Inventory  and Equipment is located at that location or at one of
          the other  locations set forth in Schedule 5.1 hereto.  The Borrower's
          tax  identification  number  is  correctly  set forth in  Section  3.6
          hereto.

                    Section  5.4  SUBSIDIARIES.  Except as set forth in Schedule
          5.4 hereto, neither the Borrower nor the Parent has any Subsidiaries.

                    Section 5.5  FINANCIAL  CONDITION;  NO ADVERSE  CHANGE.  The
          Borrower has heretofore  furnished to the Lender its audited financial
          statements  for its  fiscal  year  ended  December  31,  1999  and its
          unaudited  financial  statements  for the fiscal  year-to-date  period
          ended July 31, 2000 for the  Borrower  and the August 31, 2000 balance
          sheet for the Parent,  together with the audited financial  statements
          of the Parent  for  fiscal  year  ended  December  31,  1999 and those
          statements  fairly present the respective  financial  condition of the
          Borrower and the Parent,  as applicable,  on the dates thereof and the
          results of their respective  operations and cash flows for the periods
          then ended and were prepared in  accordance  with  generally  accepted
          accounting  principles.  Since the date of the most  recent  financial
          statements of the Borrower and the Parent,  there has been no material
          adverse change in the business,  properties or condition (financial or
          otherwise) of the Parent or the Borrower.

                    Section 5.11 DEFAULT. Each of the Borrower and the Parent is
          in  compliance  with all  provisions of all  agreements,  instruments,
          decrees  and  orders  to  which  it is a party  or by  which it or its
          property  is bound or  affected,  the breach or default of which could
          have a material adverse effect on the financial condition,  properties
          or operations of either the Borrower or the Parent.

                    Section 5.13 SUBMISSIONS TO LENDER.  All financial and other
          information  provided to the Lender by or on behalf of the Borrower or
          the Parent in connection  with the  Borrower's  request for the credit
          facilities  contemplated  hereby is true and  correct in all  material
          respects  and, as to  projections,  valuations  or proforma  financial
          statements,  present  a good  faith  opinion  as to such  projections,
          valuations and proforma condition and results.

          5. AMENDMENTS TO REPORTING REQUIREMENTS.

               1. Subsections  6.1(a),  (f), (k), (l), (m) and (n) of the Credit
Agreement are hereby deleted in their entirety and replaced with the following:

                    Section 6.1  REPORTING  REQUIREMENTS.  The Borrower will and
          will cause the Parent to  deliver,  or cause to be  delivered,  to the
          Lender each of the following,  as  applicable,  which shall be in form
          and detail acceptable to the Lender:

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               (a) (i ) as soon as  available,  and in any event within 120 days
          after the end of each fiscal  year of the  Borrower  and  Parent,  the
          Borrower's and Parent's audited  financial  statements for such fiscal
          year, each of such audited  financial  statements with the unqualified
          opinion of independent  certified public  accountants  selected by the
          Borrower  and Parent and  acceptable  to the  Lender,  and which shall
          include the  Borrower's  and Parent's  balance  sheet as at the end of
          such fiscal  year and the related  statements  of the  Borrower's  and
          Parent's income,  retained earnings and cash flows for the fiscal year
          then ended,  prepared,  if the Lender so requests,  on a consolidating
          and  consolidated  basis to include any Affiliates,  all in reasonable
          detail and  prepared  in  accordance  with  GAAP,  and (ii) as soon as
          available and in any event within 45 days after the end of each fiscal
          quarter, an unaudited/internal  balance sheet and statements of income
          and retained  earnings of the Borrower and Parent as at the end of and
          for such  quarter and for the year to date  period  then  ended;  each
          together with (x) copies of all  management  letters  prepared by such
          accountants;  (y) a report signed by such accountants  stating that in
          making the investigations  necessary for said opinion they obtained no
          knowledge,  except as specifically  stated, of any Default or Event of
          Default  hereunder  and all  relevant  facts in  reasonable  detail to
          evidence,  and the  computations as to, whether or not the Borrower is
          in compliance with the  requirements set forth in Sections 6.13, 6.14,
          6.15,  6.16,  6.17,  6.18,  6.19,  6.20,  6.21,  and  7.10;  and (z) a
          certificate of the Borrower's  and Parent's chief  financial  officers
          stating  that  such  financial   statements   have  been  prepared  in
          accordance  with GAAP and whether or not such officer has knowledge of
          the  occurrence of any Default or Event of Default  hereunder  and, if
          so, stating in reasonable detail the facts with respect thereto;

               (f) as promptly as  practicable  (but in any event not later than
          five business days) after an officer of the Borrower obtains knowledge
          of the occurrence of any breach, default or event of default under any
          Security Document or any event which constitutes a Default or Event of
          Default hereunder, notice of such occurrence, together with a detailed
          statement by a responsible  officer of the Borrower of the steps being
          taken by the  Borrower to cure the effect of such  breach,  default or
          event;

          . . .

               (k) promptly  upon their  distribution,  copies of all  financial
          statements, reports and proxy statements which the Borrower and/or the
          Parent shall have sent to its stockholders;

               (l) promptly after the sending or filing  thereof,  copies of all
          regular and  periodic  reports  which the  Borrower  and/or the Parent
          shall file with the Securities and Exchange Commission or any national
          securities exchange;

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               (m) promptly upon  knowledge  thereof,  notice of the  Borrower's
          violation of any law,  rule or  regulation,  the  non-compliance  with
          which could  materially and adversely  affect either the Borrower's or
          the Parent's business or financial condition; and

               (n) from time to time,  with reasonable  promptness,  any and all
          receivables schedules,  collection reports, deposit records, equipment
          schedules,  copies of invoices to account debtors,  shipment documents
          and delivery  receipts for goods sold of or by the Borrower,  and such
          other material, reports, records or information of either the Borrower
          or the Parent as the Lender may request.

               2. Sections 6.2, 6.5, 6.19, 6.20 and 6.21 of the Credit Agreement
are hereby deleted in their entirety and replaced with the following:

               Section 6.2 BOOKS AND RECORDS;  INSPECTION AND  EXAMINATION.  The
          Borrower will and will cause the Parent to respectively  keep accurate
          books  of  record  and  account  for the  Borrower  pertaining  to the
          Collateral  and  pertaining to the  respective  business and financial
          condition of the Borrower and the Parent and such other matters as the
          Lender  may  from  time to time  request  in which  true and  complete
          entries will be made in  accordance  with GAAP and,  upon the Lender's
          request, will permit any officer, employee, attorney or accountant for
          the Lender to audit,  review,  make  extracts from or copy any and all
          corporate and financial  books and records of the Borrower  and/or the
          Parent  at all  times  during  ordinary  business  hours,  to send and
          discuss  with  account   debtors  and  other  obligors   requests  for
          verification  of amounts  owed to the  Borrower,  and to  discuss  the
          Borrower's or Parent's  affairs with any of its respective  directors,
          officers,  employees or agents.  The Borrower  will and will cause the
          Parent  to   respectively   permit  the  Lender,   or  its  employees,
          accountants,   attorneys  or  agents,   to  examine  and  inspect  any
          Collateral,  other collateral covered by the Security Documents or any
          other  property  of the  Borrower  or the  Parent  at any time  during
          ordinary business hours.

               Section 6.5 PAYMENT OF TAXES AND OTHER  CLAIMS.  The Borrower and
          Parent will pay or discharge, when due, (a) all taxes, assessments and
          governmental  charges  levied or imposed upon it or upon its income or
          profits,  upon any  properties  belonging  to it  (including,  without
          limitation,   the   Collateral)  or  upon  or  against  the  creation,
          perfection or continuance of the Security Interest,  prior to the date
          on which penalties  attach thereto,  (b) all federal,  state and local
          taxes  required to be  withheld  by it, and (c) all lawful  claims for
          labor,  materials and supplies which, if unpaid, might by law become a
          lien or charge upon any properties of the Borrower; provided, that the
          Borrower  and  Parent  shall  not be  required  to pay any  such  tax,
          assessment, charge

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          or claim whose amount, applicability or validity is being contested in
          good faith by appropriate  proceedings  and for which proper  reserves
          have been made.

               Section 6.19  MAXIMUM  MONTHLY NET LOSS.  The  Borrower  will not
          incur during any calendar month a net loss, i.e.  negative Net Income,
          in excess of  ($50,000)  determined  as of each  calendar  month  end,
          except  during the  calendar  months of January  and  February of each
          fiscal  year for which  such  loss  shall not  exceed  ($100,000)  and
          ($75,000), respectively.

               Section  6.20 MINIMUM  QUARTERLY  NET INCOME.  The Borrower  will
          achieve as of the end of each fiscal quarter,  a minimum Net Income of
          not less than $0 for such quarter; provided however that for the first
          fiscal  quarter  ending March 31st of each fiscal  year,  the Borrower
          shall be permitted to incur a net loss, i.e.  negative Net Income,  up
          to but not in excess of ($175,000).

               Section 6.21 MINIMUM ANNUAL NET INCOME. The Borrower will achieve
          as of each fiscal  year end  described  below,  Net Income of not less
          than the amount set forth opposite such year end:

                 FYE                     MINIMUM NET INCOME
                 ---                     ------------------
               6/30/01                         $50,000
               6/30/02                        $150,000
               6/30/03                        $200,000

          6.  NEGATIVE  COVENANTS.  Sections  7.1, 7.2, 7.3, 7.4, 7.6, 7.7, 7.8,
7.11,  7.13,  7.14,  7.15,  7.16,  7.18 and 7.19 of  Article  VII of the  Credit
Agreement are hereby deleted in their entirety and replaced with the following:

               Section  7.1 LIENS.  Neither  the  Borrower  nor the Parent  will
          create, incur or suffer to exist any mortgage,  deed of trust, pledge,
          lien, security interest,  assignment or transfer upon or of any of its
          assets, now owned or hereafter  acquired,  to secure any indebtedness;
          EXCLUDING, HOWEVER, from the operation of the foregoing, the following
          (collectively, "Permitted Liens"):

                    (a) in the case of any of the  Borrower's  property which is
               not  Collateral  or other  collateral  described  in the Security
               Documents, covenants,  restrictions,  rights, easements and minor
               irregularities  in title which do not  materially  interfere with
               the Borrower's business or operations as presently conducted;

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                    (b)  mortgages,  deeds of trust,  pledges,  liens,  security
               interests  and  assignments  in  existence on the date hereof and
               listed in SCHEDULE 7.1 hereto, securing indebtedness for borrowed
               money permitted under Section 7.2; provided,  however,  that with
               respect  to  the  indebtedness  of  the  Borrower  owing  to  KBK
               Financial,  Inc.,  such  indebtedness  and all  deeds  of  trust,
               mortgages  and other liens  granted by the  Borrower and securing
               such  indebtedness,   together  with  the  indebtedness   secured
               thereby, shall at all times remain subject and subordinate to the
               Obligations and the Security Interest,  the Deed of Trust and all
               other  liens  and  security  interests  created  by the  Security
               Documents, each pursuant to the terms and conditions set forth in
               the Subordination Agreement;

                    (c) the Security  Interest and liens and security  interests
               created by the Security Documents or liens and security interests
               expressly consented to by the Lender; and

                    (d)  purchase  money  security  interests  relating  to  the
               acquisition  of  machinery  and  equipment  of the  Borrower  not
               exceeding  the lesser of cost or fair market value  thereof,  not
               exceeding  $25,000  for  any  one  purchase  or  $100,000  in the
               aggregate during any fiscal year and so long as no Default Period
               is then in existence and none would exist  immediately after such
               acquisition.

               Section 7.2  INDEBTEDNESS.  Neither the  Borrower  nor the Parent
          will  incur,  create,  assume or permit to exist any  indebtedness  or
          liability on account of deposits or advances or any  indebtedness  for
          borrowed  money or  letters  of  credit  issued on the  Borrower's  or
          Parent's behalf, or any other  indebtedness or liability  evidenced by
          notes, bonds, debentures or similar obligations, except:

                    (a) indebtedness arising hereunder or the Guaranty;

                    (b)  indebtedness  of the  Borrower in existence on the date
               hereof and listed in SCHEDULE 7.2 hereto or  indebtedness  of the
               Parent  as set  forth  in its  August  31,  2000  balance  sheet;
               provided,  however,  that with respect to the indebtedness of the
               Borrower owing to KBK Financial,  Inc., such indebtedness and all
               deeds of trust, mortgages and other liens granted by the Borrower
               and securing such  indebtedness,  together with the  indebtedness
               secured   thereby,   shall  at  all  times  remain   subject  and
               subordinate to the  Obligations  and the Security  Interest,  the
               Deed of Trust and all other liens and security  interests created
               by  the  Security  Documents,  each  pursuant  to the  terms  and
               conditions set forth in the Subordination Agreement;

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                    (c)  indebtedness  relating to liens permitted in accordance
               with Section 7.1; and

                    (d)  indebtedness  of the Parent incurred in connection with
               (i)  the  issuance  of  convertible  indebtedness,  or  (ii)  any
               acquisition or in connection  with any secondary  equity offering
               or equity private placement.

               Section 7.3 GUARANTIES.  Neither the Borrower nor the Parent will
          assume,   guarantee,   endorse  or   otherwise   become   directly  or
          contingently  liable in connection  with any  obligations of any other
          Person, except:

                    (a)  the  endorsement  of  negotiable   instruments  by  the
               Borrower for deposit or collection or similar transactions in the
               ordinary course of business; and

                    (b) the  Guaranty  or  guaranties,  endorsements  and  other
               direct  or  contingent   liabilities   in  connection   with  the
               obligations of other Persons, in existence on the date hereof and
               listed in SCHEDULE 7.2 hereto.

               Section 7.4   INVESTMENTS AND SUBSIDIARIES.

                    (a) Neither  the  Borrower  nor the Parent will  purchase or
               hold  beneficially  any stock or other securities or evidences of
               indebtedness  of,  make or permit to exist any loans or  advances
               to, or make any investment or acquire any interest whatsoever in,
               any other Person,  including  specifically but without limitation
               any partnership or joint venture, except:

                         (i)  investments  by the Parent in any  Subsidiary  and
                    investments  in direct  obligations  of the United States of
                    America  or any  agency  or  instrumentality  thereof  whose
                    obligations  constitute full faith and credit obligations of
                    the United  States of America  having a maturity of one year
                    or less,  commercial paper issued by U.S. corporations rated
                    "A-1" or "A-2" by Standard & Poors  Corporation  or "P-1" or
                    "P-2"  by  Moody's  Investors  Service  or  certificates  of
                    deposit or  bankers'  acceptances  having a maturity  of one
                    year or less issued by members of the Federal Reserve System
                    having   deposits   in   excess   of   $100,000,000   (which
                    certificates  of deposit or bankers'  acceptances  are fully
                    insured by the Federal Deposit Insurance Corporation);

                         (ii)  travel  advances  or  loans to the  officers  and
                    employees of the Borrower or the Parent not exceeding at any
                    one time an aggregate of $10,000; and

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                         (iii)  advances  in  the  form  of  progress  payments,
                    prepaid  rent not  exceeding  three (3)  months or  security
                    deposits.

                    (b)  Neither  the  Borrower  nor the Parent  will  create or
               permit to exist any Subsidiary,  other than the Subsidiar(y)(ies)
               in existence on the date hereof and listed in Schedule 5.4.

          . . .

               Section 7.6 SALE OR TRANSFER  OF ASSETS;  SUSPENSION  OF BUSINESS
          OPERATIONS.  Neither the  Borrower  nor the Parent  will sell,  lease,
          assign,  transfer  or  otherwise  dispose  of  (i)  the  stock  of any
          Subsidiary, (ii) all or a substantial part of its assets, or (iii) any
          Collateral or any interest therein (whether in one transaction or in a
          series of  transactions)  to any other  Person  other than the sale of
          Inventory in the ordinary  course of business and will not  liquidate,
          dissolve or suspend business operations.  The Borrower will not in any
          manner transfer any property  without prior or present receipt of full
          and adequate consideration.

               Section 7.7 CONSOLIDATION AND MERGER; ASSET ACQUISITIONS. Neither
          the  Borrower nor the Parent will  consolidate  with or merge into any
          Person,  or permit any other Person to merge into it, or acquire (in a
          transaction  analogous  in  purpose  or effect to a  consolidation  or
          merger) all or substantially all the assets of any other Person.

               Section  7.8 SALE AND  LEASEBACK.  Neither the  Borrower  nor the
          Parent will enter into any arrangement,  directly or indirectly,  with
          any  other  Person  whereby  it  shall  sell or  transfer  any real or
          personal property,  whether now owned or hereafter acquired,  and then
          or  thereafter  rent or  lease as  lessee  such  property  or any part
          thereof   or  any  other   property   which  it  intends  to  use  for
          substantially  the same purpose or purposes as the property being sold
          or transferred.

          . . .

               Section 7.11 ACCOUNTING. Neither the Borrower nor the Parent will
          (i) adopt any material change in accounting  principles  other than as
          required by GAAP,  nor (ii) adopt,  permit or consent to any change in
          its fiscal year.

          . . .

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<PAGE>

               Section 7.13 DEFINED BENEFIT PENSION PLANS.  Neither the Borrower
          nor the Parent  will  adopt,  create,  assume or become a party to any
          defined benefit pension plan,  unless disclosed to the Lender pursuant
          to Section 5.10.

               Section 7.14 OTHER DEFAULTS.  Neither the Borrower nor the Parent
          will permit any breach, default or event of default to occur under any
          note, loan agreement,  indenture,  lease, mortgage, contract for deed,
          security  agreement or other contractual  obligation binding upon such
          parties.

               Section  7.15 PLACE OF BUSINESS;  NAME.  Neither the Borrower nor
          the Parent will transfer its chief executive office or principal place
          of business,  or move, relocate,  close or sell any business location.
          The Borrower  will not permit any tangible  Collateral  or any records
          pertaining  to the  Collateral  to be  located in any state or area in
          which, in the event of such location,  a financing  statement covering
          such  Collateral  would be  required  to be, but has not in fact been,
          filed in order to perfect the Security Interest.  Neither the Borrower
          nor the Parent will change its name, except the change of the Parent's
          name to Gourmet Group, Inc.

               Section 7.16  ORGANIZATIONAL  DOCUMENTS;  S  CORPORATION  STATUS.
          Neither  the  Borrower  nor the Parent will amend its  certificate  of
          incorporation,  articles  of  incorporation  or bylaws  nor change its
          state of organization. Neither the Borrower nor the Parent will become
          an S  Corporation  within the meaning of the Internal  Revenue Code of
          1986, as amended.

          . . .

               Section  7.18 CHANGE IN  OWNERSHIP.  Neither the Borrower nor the
          Parent  will  issue or sell any stock,  or any  options,  warrants  or
          convertible  indebtedness  for  the  issuance  of  any  stock,  of the
          Borrower  or Parent  so as to  change  the  percentage  of voting  and
          non-voting  stock  owned  by  each  of  the  Borrower's  and  Parent's
          shareholders, and the Borrower and Parent will not permit or suffer to
          occur the sale, transfer,  assignment,  pledge or other disposition of
          any or all of the  issued  and  outstanding  shares of  stock,  or any
          options,  warrants or convertible indebtedness for the issuance of any
          stock,  of the Borrower and Parent;  provided,  however,  (a) MKGI may
          purchase the capital stock of any other shareholder of the Parent, (b)
          the Parent may issue  common  stock in any amounts and for any purpose
          provided  that at all times  MKGI  shall own with the power to vote at
          least fifty one percent (51%) of the  outstanding  voting stock of the
          Parent.

               Section 7.19 CHANGE IN SENIOR MANAGEMENT. The Borrower represents
          and warrants to Lender that the current chief executive officer, chief
          financial  officer and chief  operating  officer for the  Borrower are
          Fredrick Schulman,  Kimberly Eckert and

                                       11
<PAGE>

          Harry J. Trube,  respectively,  and that the current  chief  executive
          officer,  chief financial  officer,  chief  operating  officer for the
          Parent  are  Fredrick  Schulman,  Kimberly  Eckert  and Harry J. Trube
          respectively.  Neither  the  Borrower  nor the  Parent  shall make any
          change in such  senior  management  positions  or  terminate  any such
          senior manager without the prior written consent of the Lender.

          7.   RESTRICTIONS  ON  TRANSACTION  WITH  AFFILIATES.   The  following
provision is added as Section 7.20 of the

               Section 7.20  RESTRICTIONS ON TRANSACTION  WITH  AFFILIATES.  The
          Borrower  shall not enter  into any  transaction,  including,  without
          limitation,  any purchase,  sale,  lease or exchange of property,  the
          rendering of any service or the payment of any management, advisory or
          similar fees, with any Affiliate unless consented to by the Lender.

          8. WAIVER OF COVENANT  DEFAULTS.  Borrower  acknowledges that Defaults
have occurred as follows:  (a) as of June 30, 2000,  the Borrower was in default
of the monthly net income  covenant and the quarterly net income  covenant under
the Credit  Agreement,  together  with the failure by MKGI to make the Keep Well
Payment  required by MKGI under and pursuant to the Keep Well  Agreement for the
month of June 2000, and (b) as of July 31, 2000, the failure by MKGI to make the
Keep Well Payment  required  under the Keep Well Agreement for the month of July
2000. On the effective date of this  Amendment,  the Lender agrees to waive such
Defaults,  subject  however to the condition that MKGI shall have cured and made
the Keep Well Payments to the Borrower  required  under the Keep Well  Agreement
for June and July 2000 as referenced  above,  which  payments shall in any event
have been made on or before  September ___, 2000. This waiver shall be effective
only in this  specific  instance  and for the  specific  purpose for which it is
given,  and this wavier  shall not entitle the  Borrower to any other or further
waiver in any similar or other circumstances.

          9. AMENDMENT OF EVENTS OF DEFAULT. Subsections 8.1 (c), (g), (h), (i),
(j),  (l),  (m),  (n), (q) and (s) of the Credit  Agreement are deleted in their
entirety and replaced with the following:

                    (c) Default in the performance,  or breach,  of any covenant
               or  agreement  of  the  Borrower  or  Parent  contained  in  this
               Agreement or the Guaranty;

                  . . .

                    (g) Any  representation  or warranty made by or on behalf of
               the Borrower or Parent in this Agreement or the Guaranty,  by any
               Guarantor  in any  guaranty  delivered  to the Lender,  or by the
               Borrower  (or  any  of  its  officers),  Parent  (or  any  of its
               officers)  or  any  Guarantor  in  any  agreement,   certificate,
               instrument or financial statement or other statement contemplated
               by or made or delivered  pursuant to or in

                                       12
<PAGE>

               connection  with this  Agreement or any such guaranty shall prove
               to have been incorrect in any material  respect when deemed to be
               effective;

                    (h) The rendering  against the Borrower or Parent of a final
               judgment,  decree or order for the  payment of money in excess of
               $25,000 and the  continuance  of such  judgment,  decree or order
               unsatisfied  and in effect for any period of 30 consecutive  days
               without a stay of execution;

                    (i) A  default  under  any  bond,  debenture,  note or other
               evidence of  indebtedness  of the  Borrower or Parent owed to any
               Person  other than the Lender,  or under any  indenture  or other
               instrument under which any such evidence of indebtedness has been
               issued or by which it is  governed,  or under any lease of any of
               the  Premises,  and the  expiration of the  applicable  period of
               grace,  if any,  specified  in  such  evidence  of  indebtedness,
               indenture, other instrument or lease;

                    (j) Any  Reportable  Event,  which the Lender  determines in
               good faith might  constitute  grounds for the  termination of any
               Plan of either the Borrower or the Parent or for the  appointment
               by the  appropriate  United States District Court of a trustee to
               administer  any such Plan,  shall have occurred and be continuing
               30 days after written notice to such effect shall have been given
               to the  Borrower  by the  Lender;  or a trustee  shall  have been
               appointed  by an  appropriate  United  States  District  Court to
               administer  any  such  Plan;  or  the  Pension  Benefit  Guaranty
               Corporation  shall have  instituted  proceedings to terminate any
               such Plan or to appoint a trustee to administer any such Plan; or
               the   Borrower  or  Parent   shall  have  filed  for  a  distress
               termination of any Plan under Title IV of ERISA;  or the Borrower
               or Parent  shall have failed to make any  quarterly  contribution
               required  with  respect to any Plan under  Section  412(m) of the
               Internal  Revenue  Code of 1986,  as  amended,  which the  Lender
               determines in good faith may by itself,  or in  combination  with
               any such  failures  that the Lender may  determine  are likely to
               occur in the future,  result in the  imposition  of a lien on the
               Borrower's and/or Parent's assets in favor of the Plan;

                  . . .

                    (l) Either the Borrower or Parent shall liquidate, dissolve,
               terminate  or  suspend  any  material  portion  of  its  business
               operations  or  otherwise  fail to operate  its  business  in the
               ordinary course,  or sell all or substantially all of its assets,
               without the Lender's prior written consent;

                    (m) The  Borrower  or Parent  shall  fail to pay,  withhold,
               collect or remit any tax or tax  deficiency  when assessed or due
               (other than any tax deficiency  which is being  contested in good
               faith and by proper  proceedings  and for which it shall have set
               aside on its books adequate  reserves  therefor) or notice of any
               state or federal tax liens shall be filed or issued;

                                       13
<PAGE>

                    (n)  Default  in the  payment  of  any  amount  owed  by the
               Borrower  or Parent to the  Lender  other  than any  indebtedness
               arising hereunder or under the Guaranty;

                  . . .

                    (q) Any event or  circumstance  with respect to the Borrower
               or Parent shall occur such that the Lender shall  believe in good
               faith  that the  prospect  of  payment  of all or any part of the
               Obligations  or the  performance  by the Borrower or Parent under
               the Loan Documents is impaired or any material  adverse change in
               the  business or  financial  condition  of the Borrower or Parent
               shall occur;

                  . . .

                    (s) Any breach by the  Borrower or Parent of the terms under
               Section  7.19  hereof  or  the  chief  executive  officer,  chief
               financial  officer or chief operating officer of the Borrower and
               Parent shall resign and the Borrower and Parent shall fail within
               90  calendar  days  thereafter  to engage and appoint a qualified
               successor  acceptable  to the  Lender  in its sole  and  absolute
               discretion.

          10. CONSENT TO CHANGE OF FISCAL YEAR.  Borrower  desires to change its
fiscal year end from December 31 to June 30 of each calendar  year.  Pursuant to
Section 7.11, the Lender consents to the change of the fiscal year from December
31 to June 30.

          11.  CONSENT TO CHANGE OF CFO.  The  Borrower  has notified the Lender
that effective as of September __, 2000, Julie Tedesco has resigned as the Chief
Financial  Officer of the Borrower and Kimberly Eckert has assumed such position
and duties. The Lender hereby consents to such change.

          12. NO OTHER CHANGES.  Except as explicitly amended by this Amendment,
all of the terms and  conditions  of the Credit  Agreement  shall remain in full
force and effect and shall apply to any advance or letter of credit thereunder.

          13.  AMENDMENT  FEE. The Borrower  shall pay the Lender as of the date
hereof  a  fully  earned,   non-refundable  fee  in  the  amount  of  $7,500  in
consideration of the Lender's execution of this Amendment.

          14. CONDITIONS  PRECEDENT.  This Amendment shall be effective when the
Lender shall have received an executed  original  hereof,  together with each of
the following,  each in substance and form  acceptable to the Lender in its sole
discretion:

               (1) A Certificate of the Secretary of the Borrower  certifying as
          to (i) the  resolutions  of the  board of  directors  of the  Borrower
          approving the  execution and delivery of this  Amendment and the Share
          Exchange  Agreement,  together  with  the  performance  of the  terms,
          provisions and transactions  contemplated  therein, (ii) the

                                       14
<PAGE>

          fact that the articles of  incorporation  and bylaws of the  Borrower,
          which were  certified  and  delivered  to the Lender  pursuant  to the
          Certificate  of  Authority  of the  Borrower's  secretary or assistant
          secretary  dated as of May 31, 2000  continue in full force and effect
          and have not been amended or otherwise modified except as set forth in
          the  Certificate  to be  delivered,  and  (iii)  certifying  that  the
          officers  and agents of the  Borrower  who have been  certified to the
          Lender,  pursuant to the  Certificate  of Authority of the  Borrower's
          secretary or assistant  secretary  dated as of May 31, 2000,  as being
          authorized to sign and to act on behalf of the Borrower continue to be
          so authorized  or setting  forth the sample  signatures of each of the
          officers and agents of the Borrower  authorized to execute and deliver
          this Amendment and all other documents, agreements and certificates on
          behalf of the Borrower.

               (2)  Execution  and delivery by Gourmet of a Guaranty in favor of
          the Lender pursuant to which Gourmet shall have  guaranteed  repayment
          of all Obligations (the "Guaranty").

               (3) A Certificate  of the  Secretary of Gourmet  certifying as to
          (i) the resolutions of the Board of Directors of Gourmet approving the
          execution and delivery of this  Amendment,  the Guaranty and the Share
          Exchange  Agreement and the  performance of all terms,  provisions and
          transactions  contemplated thereby, (ii) the Articles of Incorporation
          and Bylaws,  as amended,  of Gourmet,  together with a Certificate  of
          Good  Standing  from its state of  incorporation,  each as attached to
          such certificate and (iii) certifying as to the officers and agents of
          Gourmet  who are  authorized  on behalf of Gourmet to take all actions
          and  execute  any  and  all  documents  necessary  or  related  to the
          above-referenced  documents  and  transactions,   including,   without
          limitation, this Amendment, the Guaranty, the Share Exchange Agreement
          and all other documents,  agreements and certificates to be issued for
          and on behalf of Gourmet,  and (iv) the Share Exchange Agreement which
          shall be  attached  thereto as an exhibit,  together  with all related
          amendments.

               (4)  Opinions  of Counsel  of each of the  Borrower  and  Gourmet
          containing  opinions on behalf of the Borrower and Gourmet in favor of
          the Lender with respect to this  Amendment,  the  Guaranty,  the Share
          Exchange Agreement and the documents and transactions  related thereto
          and to such other matters and in such form as the Lender may require.

               (5) Payment of the fee described in Paragraph 12 above.

               (6) Such other matters as the Lender may require.

          Notwithstanding  the  foregoing,  the  Borrower  agrees to cause to be
          delivered to the Lender  within ten (10)  business days after the date
          hereof, a Certificate of the Secretary of Gourmet certifying as to the
          good  standing  of  Gourmet  in the  State of

                                       15
<PAGE>

          Texas,  together with a Certificate of Authority to do business in the
          State of Texas, each as attached to such certificate

          15. GENERAL  REPRESENTATIONS AND WARRANTIES.  The Borrower and Gourmet
hereby represent and warrant to the Lender as follows:

               (1)  The  Borrower  and  Parent  have  all  requisite  power  and
          authority to execute this  Amendment,  the Guaranty the Share Exchange
          Agreement  and each of the  other  documents  and  agreements  related
          hereto or referenced herein (collectively,  the Amendment Documents"),
          each  to  the  extent  a  party  thereto,  and to  perform  all of its
          obligations  hereunder  and  thereunder,  and  each  of the  Amendment
          Documents  has been duly  executed  and  delivered by the Borrower and
          Parent,  and constitute the legal, valid and binding obligation of the
          Borrower and Parent,  to the extent a party  thereto,  enforceable  in
          accordance with its terms.

               (2) The execution,  delivery and  performance by the Borrower and
          Parent of the  Amendment  Documents  have been duly  authorized by all
          necessary  corporate action and do not (i) require any  authorization,
          consent or approval by any governmental department, commission, board,
          bureau,  agency or instrumentality,  domestic or foreign, (ii) violate
          any provision of any law,  rule or  regulation or of any order,  writ,
          injunction or decree presently in effect,  having applicability to the
          Borrower or Parent, or the articles of incorporation or by-laws of the
          Borrower or Parent,  or (iii)  result in a breach of or  constitute  a
          default under any  indenture or loan or credit  agreement or any other
          agreement,  lease or  instrument  to which the Borrower or Parent is a
          party or by which it or its properties may be bound or affected.

               (3) All of the  representations  and warranties  contained in the
          Credit Agreement, as amended by this Amendment,  are correct on and as
          of the date  hereof as though  made on and as of such date,  except to
          the extent that such  representations  and warranties relate solely to
          an earlier date.

          16. REFERENCES. All references in the Credit Agreement shall be deemed
to refer to the Credit  Agreement as amended hereby;  and any and all references
in the Security  Documents to the Credit  Agreement  shall be deemed to refer to
the Credit Agreement as amended hereby.

          17. NO WAIVER.  The execution of this  Amendment and acceptance of any
documents  related  hereto  shall  not be deemed to be a waiver of any under the
Credit  Agreement  or breach,  default or event of  default  under any  Security
Document  or other  document  held by the  Lender,  whether  or not known to the
Lender and whether or not existing on the date of this Amendment.

                                       16
<PAGE>

          18.   RELEASE.   The  Borrower  and  Parent  hereby   absolutely   and
unconditionally  releases  and forever  discharges  the Lender,  and any and all
participants,   parent   corporations,   subsidiary   corporations,   affiliated
corporations,  insurers,  indemnitors,  successors and assigns thereof, together
with all of the present and former directors,  officers, agents and employees of
any of the  foregoing,  from any and all claims,  demands or causes of action of
any  kind,  nature  or  description,  whether  arising  in law or equity or upon
contract  or tort or under  any state or  federal  law or  otherwise,  which the
Borrower or Parent has had,  now has or has made claim to have  against any such
person for or by reason of any act, omission,  matter, cause or thing whatsoever
arising from the beginning of time to and including the date of this  Amendment,
whether  such  claims,  demands and causes of action are matured or unmatured or
known or unknown.

          19. COSTS AND EXPENSES.  The Borrower  hereby  reaffirms its agreement
under the  Credit  Agreement  to pay or  reimburse  the Lender on demand for all
costs  and  expenses  incurred  by the  Lender  in  connection  with the  Credit
Agreement,  the Security Documents and all other documents contemplated thereby,
including  without  limitation all reasonable  fees and  disbursements  of legal
counsel.  Without  limiting  the  generality  of  the  foregoing,  the  Borrower
specifically  agrees to pay all fees and  disbursements of counsel to the Lender
for the services performed by such counsel in connection with the preparation of
this Amendment and the documents and instruments incidental hereto. The Borrower
hereby  agrees that the Lender may, at any time or from time to time in its sole
discretion and without further authorization by the Borrower, make a loan to the
Borrower under the Credit Agreement,  or apply the proceeds of any loan, for the
purpose of paying any such fees, disbursements, costs and expenses.

          20.  MISCELLANEOUS.  This  Amendment  may be executed in any number of
counterparts,  each of which when so executed and  delivered  shall be deemed an
original and all of which counterparts, taken together, shall constitute one and
the same instrument.

          21.  NON-PARTY  STATUS.   Gourmet  acknowledges  and  agrees  that  by
executing  this  Amendment and each of the other  Amendment  Documents it is not
becoming a party under the Credit Agreement or otherwise entitled to any rights,
benefits or notices with respect to the Credit  Agreement,  nor shall in any way
modify the express  terms and  provisions of the Guaranty and is not intended to
be a third party beneficiary under the Credit Agreement.

         [The remainder of this page has been intentionally left blank.]

                                       17
<PAGE>

          IN WITNESS  WHEREOF,  the parties hereto have caused this Amendment to
be duly executed as of the date first written above.

WELLS FARGO BUSINESS CREDIT, INC.           OUR FOOD PRODUCTS GROUP, INC.
---------------------------------           -----------------------------

BY /s/ MICHELLE SALISBURY                   BY /s/ FREDRICK SCHULMAN
  -------------------------------             ----------------------------------
  MICHELLE SALISBURY                          FREDRICK SCHULMAN

  ITS VICE PRESIDENT                          ITS PRESIDENT

GOURMET GROUP, INC.

BY /s/ FREDRICK SCHULMAN
---------------------------------
FREDRICK SCHULMAN

ITS PRESIDENT

                                       18
<PAGE>

                                  SCHEDULE 3(B)

                               GOURMET GROUP, INC.

                           [Intentionally Left Blank.]

Total Capital Authorized:

      Class A Common Stock: 50,000,000 shares

Total Class A Common Outstanding: 29,233,363 shares

Total Options: 3,239,952 options

No other convertible securities, options or warrants.

                                       19
<PAGE>

                                  SCHEDULE 3(B)

                          OUR FOOD PRODUCTS GROUP, INC.
                               D/B/A JARDINE FOODS

                                 CAPITALIZATION

AUTHORIZED:

         Class A Preferred Stock    -             10,000,000 shares

         Class B Preferred Stock    -             10,000,000 shares

         Class C Preferred Stock    -              5,000,000 shares

         Class A Common Stock       -             10,000,000 shares

         Class B Common Stock       -             10,000,000 shares

OUTSTANDING:

         7,984,194 shares of Class B Common Stock

         There are no options, warrants or convertible securities except as set
         forth below.

         Warrants for Class B Common Stock:

         Warrant,  held by KBK Financial,  Inc., to purchase  177,778 shares of
         Class B Common  Stock,  subject  to  adjustment,  at $.01  per  share,
         expiring May 15, 2006.

         Warrants for Class B Preferred Stock:

         Warrant,  held by KBK Financial,  Inc., to purchase  277,778 shares of
         Class B Preferred  stock,  subject to  adjustment,  at $.01 per share,
         expiring May 15, 2006.

                                       20

<PAGE>

                                  Schedule 5.4

                (LISTING OF SUBSIDIARIES OF PARENT AND BORROWER)

     PARENT: 1. World Seair Corporation,  a Florida corporation - 100% ownership
             interest and a nonoperating shell entity.

             2.  Our  Food  Products  Group,  Inc.,  a Texas  corporation-  100%
             ownership interest.

     BORROWER:  None.

                                       21DEED OF TRUST, SECURITY AGREEMENT,
                             AND FINANCING STATEMENT

THE STATE OF TEXAS      )
                        )    KNOW ALL MEN BY THESE PRESENTS:
COUNTY OF HAYS          )

          THIS DEED OF TRUST AND SECURITY  AGREEMENT dated as of the 31st day of
May,  2000,  is given by OUR FOOD  PRODUCTS  GROUP,  INC.,  a Texas  corporation
(herein called the "Grantors," whether one or more), whose mailing address is #1
Chisholm Trail, Buda, Texas 78610 unto Michelle Salisbury Trustee (herein called
the  "Trustee")  whose mailing  address is 6100 Bandera Road,  Suite SL100,  San
Antonio,  TX 78238, in trust for WELLS FARGO BUSINESS CREDIT,  INC., a Minnesota
corporation (herein called the "Beneficiary"),  whose address is Norwest Center,
N9312-040, Sixth Street and Marquette Avenue, Minneapolis, Minnesota 55479.

                              W I T N E S S E T H:
                              - - - - - - - - - -

          FOR AND IN CONSIDERATION of the  Indebtedness  hereinafter  described,
Grantors have granted,  bargained,  sold and conveyed,  and by these presents do
grant,  bargain, sell and convey, in trust, unto the Trustee, his successors and
assigns, forever, all and singular the property hereinafter described,  situated
in the County of Hays and State of Texas, to wit:

          (a) All that  certain  tract or parcel of land  located at #1 Chisholm
Trail,  Buda,  Texas,  and more  particularly  described in EXHIBIT "A" attached
hereto and incorporated herein by reference for all purposes;

          (b) All rights, titles, interests,  estates, reversions and remainders
owned or to be owned by Grantors in and to the above  described  premises and in
and to the properties covered hereby;

          (c) All rents, income, issues and profits thereof, subject however, to
the right,  power and  authority  given to and  conferred  upon  Beneficiary  to
collect and apply such rents, issues and profits;

          (d) All lands owned or to be owned by Grantors next or adjacent to any
land herein described or herein mentioned  including,  without  limitation,  all
rights,  titles and  interests  of  Grantors  owned or to be owned in and to all
easements, streets and rights-of-way of every kind and nature adjoining

<PAGE>

the said lands and all public or private  utility  connections  thereto  and all
appurtenances, servitudes, rights, ways, privileges and prescriptions thereunto,
including  without  limitation  easement  rights for ingress,  egress,  parking,
utilities and drainage;

          (e) All buildings and  improvements  of every kind and description now
or hereafter erected or placed on said real property and all materials  intended
for construction,  reconstruction,  alterations and repairs of such improvements
now or hereafter so erected;

          (f) All rights,  titles and interests of Grantors owned or to be owned
in and to all oil, gas, coal,  uranium and other minerals in, under or which may
be produced or saved from the above  described  premises and properties  covered
hereby, all leases, pooling agreements,  farmout agreements and other agreements
relating  to said  minerals,  and all  products  of any kind  refined  from said
minerals;

          (g) All goods, machinery,  apparatus,  equipment,  fittings, fixtures,
inventory,  furniture,  furnishings,  and articles of personal property of every
kind and nature whatsoever owned or hereafter acquired by Grantors,  or in which
Grantors  have an interest,  and now or  hereafter  affixed to, or located on or
about said real property or used in connection  with the operations of said real
property (including,  without limitation, all heating, lighting,  laundry, power
equipment,  engines,  pipes,  pumps,  tanks,  motors,  conduits,   switchboards,
plumbing,   cleaning,  fire  prevention,   fire  extinguishing,   refrigerating,
ventilating,  and  communications  apparatus,  air cooling and air  conditioning
apparatus, ducts and compressors,  elevators, alarm systems, escalators, shades,
carpets, awnings, screens, doors and windows,  dishwashers,  disposals,  stoves,
refrigerators, ovens, attached cabinets, partitions, plants, shrubbery, swimming
pool,  office and  clubhouse  furniture  and  furnishings,  other  furniture and
furnishings);

          (h) All awards  heretofore  and hereafter made by reason of the taking
by  eminent  domain  of the  whole or any  part of said  real  property  and any
improvements,  including  any  awards for use and  occupation  and for change of
grade of streets;

          (i) All proceeds of insurance  monies hereafter paid by reason of loss
or damage by fire, lightning, explosion, tornado, windstorm, earthquake or other
hazard to the whole or any part of said real property and improvements thereon;

          (j) Without  limitation of the foregoing,  any and all rights,  rents,
revenues,  benefits,  leases, contracts, bonds including any and all payment and
performance bonds, accounts,  general intangibles (including without limitation,
tradenames,  trademarks,  service  marks and  copyrights),  books  and  records,
computers,  computer programs and software,  chattel paper, money,  instruments,
documents,  receipts,  agreements for  architectural  and engineering  services,
agreements for  construction,  plans,  studies and analyses  (including  without
limitation architectural,  engineering, electrical and mechanical plans, studies
and  analyses),  permits,  certificates  of  occupancy,  building  certificates,
commitments (including without limitation loan commitments),  surveys, licenses,
rights to water and wastewater availability and capacity, franchises, agreements
and any other contract or agreement  relating to or

                                       2
<PAGE>

in  connection  with said real  property or any business  conducted on said real
property,  tenements,  hereditaments and appurtenances now or hereafter owned by
Grantors and appertaining to, generated from, arising out of or belonging to the
above described properties or any part thereof;

          (k)  All  proceeds,  products,  additions  to,  substitutions  for and
accessions of any and all of the foregoing property and estates;

(all  of  the  aforesaid  being  hereinafter  sometimes  called  the  "Mortgaged
Property").

          TO  HAVE  AND  TO  HOLD  the  Mortgaged  Property  unto  Trustee,  his
successors in this trust and his assigns,  forever,  and Grantors do hereby bind
Grantors, their respective heirs, legal representatives, successors and assigns,
to  warrant  and  forever  defend  the  Mortgaged  Property  unto  Trustee,  his
successors  and  assigns,  forever,  against  the claim or claims of all persons
whomsoever  claiming or to claim the same, or any part thereof,  subject only to
the Permitted Encumbrances.

                                    ARTICLE I

                                   DEFINITIONS

          Section 1.01 TERMS DEFINED ABOVE.  As used in this Deed of Trust,  the
terms "Beneficiary,"  "Grantors,"  "Mortgaged Property" and "Trustee" shall have
the respective meanings indicated above.

          Section 1.02 CERTAIN  DEFINITIONS.  The following terms shall have the
meanings  assigned to them below  whenever  they are used in this Deed of Trust,
unless  the  context  clearly  otherwise  requires.  Except  where  the  context
otherwise requires, words imparting the singular number shall include the plural
number and vice versa.

          "Beneficial  Ownership  Interest"  shall mean any shareholder or other
equity interest in Grantors.

          "Collateral"  shall  mean  all  personal  property  described  in  the
granting clause hereof which is secured hereby, and all proceeds thereof.

          "Credit  Agreement  " shall  mean that  certain  Credit  and  Security
Agreement  of even date  herewith  executed  by and  between  the  Grantors,  as
borrower and the Beneficiary,  as lender, as the same may be hereafter  amended,
supplemented,  extended  and modified  from time to time,  pursuant to which the
Beneficiary  has  agreed  to  extend a certain  revolving  loan and term  credit
facilities to the Grantors as more specifically set forth therein.

          "Deed of Trust" shall mean this Deed of Trust,  Security Agreement and
Financing Statement and any amendments or supplements hereto.

                                       3

<PAGE>

          "DTPA"  shall  mean  the  Texas  Deceptive  Trade   Practices-Consumer
Protection  Act,  Subchapter E of Chapter 17 of the Texas  Business and Commerce
Code.

          "Event of  Default"  shall  mean the  events  described  in Article IV
hereof.

          "Governmental Requirements" shall mean all laws, ordinances, statutes,
codes, rules,  regulations,  orders, and decrees of the United States, the State
of Texas,  and all local or  governmental or regulatory  authorities  exercising
jurisdiction over the Grantors or the Mortgaged Property.

          "Grantors'  Agents"  shall  mean the  Grantors'  agents,  contractors,
authorized representatives and employees.

          "Hazardous Material" shall mean any radioactive,  hazardous,  or toxic
substance,  material,  waste  or  similar  term,  the  presence  of which on the
Mortgaged  Property,  or the  discharge or emission of which from the  Mortgaged
Property,  is prohibited by  Governmental  Requirements or which require special
handling in  collection,  storage,  treatment,  or disposal by any  Governmental
Requirements.  The term Hazardous Material includes,  but is not limited to, any
material, substance, waste or similar term which is:

          (a)  Defined  as  hazardous  material  under  the laws of the State of
Texas, as amended from time to time;

          (b) Defined as a hazardous  substance under Section 311 of the Federal
Water  Pollution  Control Act (33 U.S.C.  Section  1317) as amended from time to
time;

          (c) Defined as a hazardous  waste  under  Section  1004 of the federal
Resource  Conservation and Recovery Act (RCRA) (42 U.S.C. Section 6901, ET SEQ.)
as amended from time to time;

          (d) Defined as a hazardous  waste  substance  under Section 101 of the
Comprehensive  Environmental  Response,  Compensation and Liability Act (CERCLA)
and as amended by the Superfund  Amendments and  Reauthorization  Act (SARA) (42
U.S.C. Section 9601, ET SEQ.) as amended from time to time;

          (e) Defined as a radioactive,  hazardous,  or toxic substance,  waste,
material or similar term in any rules and  regulations,  as amended from time to
time, which are adopted by any administrative agency; including, but not limited
to the  Environmental  Protection  Agency,  the  Occupational  Safety and Health
Administration,  and any such similar state or local agency having  jurisdiction
over the Mortgaged Property,  whether or not such rules and regulations have the
force of law;

          (f) Determined to contain asbestos or polychlorinated biphenyls;

                                       4
<PAGE>

          (g) Defined as  radioactive,  hazardous,  or toxic  waste,  substance,
material or similar term in any other statute, regulation, rule or law presently
in  effect,  or  enacted  or  adopted at any time after the date of this Deed of
Trust,  by  local  authorities,  the  State  of  Texas,  or  the  United  States
government; or

          (h)  Subject to  regulation  under the Toxic  Substances  Control  Act
(TSCA) (15 U.S.C. Section 2601, ET -- SEQ.) as amended from time to time.

          "Hazardous  Material   Contamination"  shall  mean  the  contamination
(whether presently existing or hereafter  occurring) of the Mortgaged  Property,
or the contamination of the buildings,  facilities, soil, ground water, aquifer,
air or other elements on, or of, any other property owned by the Grantors,  as a
result of Hazardous  Material at any time  (whether  before or after the date of
this Deed of Trust) emanating from the Mortgaged Property.

          "Indebtedness" or "said  Indebtedness"  shall mean the following debts
and obligations each whether now existing or hereafter incurred:

          (a) The Notes;

          (b) The  performance  of all  covenants  and  agreements  of  Grantors
herein;

          (c) The payment and  performance of all sums and covenants of Grantors
pursuant to this Deed of Trust,  the Credit  Agreement and any and all documents
relating to the Credit Agreement, Notes or this Deed of Trust;

          (d) All funds hereafter  advanced by Beneficiary to or for the benefit
of Grantors,  or otherwise,  as contemplated by any covenant or provision herein
contained,  in the Notes or Credit  Agreement or for any other purpose,  and all
other indebtedness,  of whatever kind or character, owing or which may hereafter
become owing by Grantors to Beneficiary,  whether such indebtedness is direct or
indirect,  primary  or  secondary,  fixed or  contingent  or arises out of or is
evidenced by note, deed of trust, open account, overdraft,  endorsement,  surety
agreement,  guaranty or  otherwise,  it being  contemplated  that  Grantors  may
hereafter  become  indebted  to  Beneficiary  in further sum or sums and whether
owned directly by Beneficiary or acquired from a third party;

          (e)  All   renewals,   extensions,   rearrangements,   increases   and
modifications of any of the indebtedness described hereinabove; and

         (f) Any and all  attorneys'  fees and  expenses of  collection  payable
under the terms hereof and of the Notes.

          "Notes"  shall  mean  those  certain  promissory  notes  of even  date
herewith  executed by Grantors  and payable to the order of the  Beneficiary  to
evidence Grantors' repayment obligations

                                       5
<PAGE>

under the credit facilities provided in the Credit Agreement,  together with any
renewals,  extensions,  rearrangements  and modifications  thereof,  which notes
contain a stated maturity date of May 31, 2003.

          "Other  Liable  Party"  shall mean any  Person,  other than  Grantors,
primarily or secondarily  liable for any of the  Indebtedness  or one who grants
Beneficiary a lien on any property as security for the Indebtedness.

          "Permitted Encumbrances" shall mean those matters described in EXHIBIT
"B" attached hereto and incorporated herein by reference for all purposes.

          "Person"  shall  mean any  individual,  corporation,  trust,  trustee,
partnership,  unincorporated  association,  government,  governmental agency, or
court or other authority,  including without limitation any officer appointed by
any court or other authority.

          "Security  Instruments" shall mean all instruments and documents given
in connection with or as security for the Notes or other Indebtedness,  executed
by the Grantors or any other Person including,  without limitation, this Deed of
Trust.

          "Termination  Date"  shall  mean the date on which  this Deed of Trust
shall be paid and satisfied in full;  except that if this Deed of Trust shall be
paid  and  satisfied  by  foreclosure,  sale  under  the  power  of sale  herein
contained,  or the acceptance of a deed in lieu of foreclosure,  or by any other
means by which title to the Mortgaged  Property,  or any part  thereof,  becomes
vested in the  Beneficiary  under this Deed of Trust,  the  Beneficiary,  or any
transferee,  assignee,  subsidiary,  or  other  successor  in  interest  to  the
Beneficiary,  then the  Termination  Date  shall be the later of (i) the date on
which  this  Deed of Trust is paid and  satisfied  in full,  or (ii) the date on
which the Grantors and the Grantors' employees,  agents, and officers have fully
and finally  relinquished,  surrendered,  and delivered up the  ownership,  use,
occupancy, and possession of all portions of the Mortgaged Property.

          "Trustee"  shall  mean  the  Trustee  named in the  opening  paragraph
hereof, and any substitute or successor trustee.

          "Uniform  Commercial Code" shall mean, subject to the terms of Section
7.12 hereof,  the Uniform  Commercial  Code as adopted in the State of Minnesota
and heretofore and hereafter amended or succeeded.

                                       6
<PAGE>

                                   ARTICLE II

                              INDEBTEDNESS SECURED

          Section 2.01  SECURITY FOR  INDEBTEDNESS.  This  conveyance is made in
trust to secure and enforce the payment of all of the Indebtedness.

          Section 2.02 PLACE OF PAYMENT.  The  Indebtedness  shall be payable at
the above stated  address of  Beneficiary  or at such other place as Beneficiary
may hereafter direct in writing.

          Section 2.03 INTEREST ON SAID INDEBTEDNESS.  Unless otherwise provided
in any instrument evidencing the Indebtedness, the Indebtedness and all portions
thereof shall bear interest at the same rate per annum as the Revolving Note (as
defined in the Credit  Agreement)  bears,  from date of accrual of  Indebtedness
until paid.

                                   ARTICLE III

                         REPRESENTATIONS, WARRANTIES AND
                              COVENANTS OF GRANTORS

          In order to better secure payment of the  Indebtedness,  and to secure
performance of Grantors' covenants and agreements set forth herein,  Grantors do
hereby  jointly  and  severally  represent,  warrant,  covenant  and agree  with
Beneficiary and with Trustee as follows:

          Section 3.01 PAYMENT OF SAID  INDEBTEDNESS.  Grantors shall pay all of
the  Indebtedness,  together  with the  interest and other  appurtenant  charges
thereon,  when the same shall  become due, in  accordance  with the terms of the
Notes and all other  instruments  evidencing the  Indebtedness or evidencing any
renewals,  rearrangements  or extensions  of the same or any part  thereof.  The
Grantors  will do and perform  every act and  discharge  all of the  obligations
provided to be  performed  and  discharged  by the  Grantors  under the Security
Instruments,  including  this  Deed of  Trust,  at the time or times  and in the
manner specified.

          Section 3.02  WARRANTY OF TITLE.  Grantors  represent and warrant that
they have in their own right  good and  indefeasible  title in fee simple to the
above  described  land,  that the  Mortgaged  Property is free from  encumbrance
superior to the liens and security interests hereby created, subject only to the
Permitted Encumbrances,  and that Grantors have full right and authority to make
this  conveyance.  Grantors agree to maintain and preserve their legal existence
and all related rights,  franchises and privileges.  Grantors shall at all times
comply with and perform all  obligations  under any applicable  laws,  statutes,
regulations or ordinances  relating to the Mortgaged  Property and Grantors' use
and operation thereof.

          Section  3.03  RIGHT OF  INSPECTION.  The  Grantors  will  permit  any
officer,  employee or agent of the  Beneficiary  to visit and inspect any of the
Mortgaged  Property of the Grantors,  examine the Grantors'  books of record and
accounts, take copies and extracts therefrom, and discuss the affairs,  finances
and  accounts of the  Grantors  with the  Grantors'  officers,  accountants  and
auditors, all at such times and as often as the Beneficiary may desire.

                                       7
<PAGE>

          Section 3.04 TAX AND INSURANCE  RESERVE.  If requested by Beneficiary,
Grantors shall create a reserve for the payment of all insurance premiums, taxes
and  assessments  against or  affecting  the  Mortgaged  Property  by paying the
Beneficiary,  on the first day of each  calendar  month prior to the maturity of
the Notes, a sum equal to one-twelfth (1/12) of the estimated taxes, assessments
and  insurance  premiums  that will next become due and payable on the Mortgaged
Property as reasonably estimated by Beneficiary.  All such sums shall be held by
Beneficiary without interest, unless interest is required by applicable law, for
the purposes of paying such premiums, taxes and assessments.  Any excess reserve
shall,  at  the  discretion  of  Beneficiary,  be  credited  by  Beneficiary  on
subsequent  reserve payments or subsequent  payments to be made on the Notes. If
Beneficiary  elects to credit  excess  reserves to  subsequent  reserves or note
payments,  Beneficiary  will credit such excess  first to  subsequent  reserves,
provided  there is then no event of default and no event has occurred which with
notice  or the  passage  of time  could  result  in an  event  of  default.  Any
deficiency  shall be paid by Grantors to  Beneficiary on or before the date when
such premiums, taxes and assessments shall become delinquent.  Transfer of legal
title to the Mortgaged  Property  shall  automatically  transfer the interest of
Grantors in all sums deposited with Beneficiary under the provisions hereof.

          Section  3.05  TAXES.  Grantors  shall pay all  taxes and  assessments
against the Mortgaged Property, including, without limitation, all taxes in lieu
of ad valorem  taxes,  as the same become due and  payable.  In the event of the
passage  after  the date of this  Deed of Trust of any law by the State of Texas
deducting  from the  Mortgaged  Property  for the  purposes of taxation any lien
thereon,  or  changing  in any way the  laws now in force  for the  taxation  of
mortgages,  deeds of trust or indebtedness  secured thereby,  for state or local
purposes,  or the manner of the  operation of any such taxes so as to affect the
interest of Beneficiary, then and in such event, Grantors shall bear and pay the
full  amount  of  such  taxes.  If  Grantors  fail  to pay any  such  taxes  and
assessments,  including,  without limitation,  taxes in lieu of ad valorem taxes
and  taxes  against  this  Deed of Trust  or the  Indebtedness  secured  hereby,
Beneficiary may pay the same,  together with all costs and penalties thereon, at
Grantors' expense; provided, however, that if for any reason payment by Grantors
of any such new or additional  taxes would be unlawful or if the payment thereof
would constitute usury or render said indebtedness  wholly or partially usurious
under any of the  terms or  provisions  of the  Notes or this Deed of Trust,  or
otherwise,  Beneficiary may, at its option,  declare the  Indebtedness  with all
accrued interest thereon to be immediately due and payable,  or Beneficiary may,
at its  option,  pay  the  amount  or  portion  of such  taxes  as  renders  the
Indebtedness  unlawful or usurious,  in which event Grantors shall  concurrently
therewith pay the remaining  lawful and  nonusurious  portion or balance of said
taxes.  Grantors shall cause the Mortgaged  Property to be segregated on any tax
rolls from all other property.

          Section 3.06 CONDEMNATION PROCEEDS. All judgments,  decrees and awards
or  payment  for  injury or damage to the  Mortgaged  Property,  and all  awards
pursuant to proceedings for condemnation  thereof,  including  interest thereon,
are hereby assigned in their entirety to  Beneficiary,  who shall apply the same
first to  reimbursement  of all costs and expenses  incurred by  Beneficiary  in
connection with such condemnation proceeding and the balance shall be applied to
said  Indebtedness  in such manner as it may elect;  and  Beneficiary  is hereby
authorized,  in the name of Grantors,  to

                                       8
<PAGE>

execute and deliver valid  acquittances for, and to appeal from, any such award,
judgment or decree. If Beneficiary  elects to allow a portion of the proceeds of
any  condemnation  proceeding  to be paid to Grantors to be used in  rebuilding,
restoration or repair of the Mortgaged  Property,  then the disbursement of such
proceeds  shall be on such terms and subject to such  conditions as  Beneficiary
may specify.  Grantors shall promptly  notify  Beneficiary of the institution or
threatened  institution  of any proceeding  for the  condemnation  of any of the
Mortgaged Property.  Beneficiary shall have the right to participate in any such
condemnation proceeding.

          Section 3.07 DEFENSE OF TITLE. If while this Deed of Trust is in force
the title of Trustee to the Mortgaged  Property,  or any part thereof,  shall be
endangered  or  shall  be  attacked  directly  or  indirectly,  Grantors  hereby
authorize  Beneficiary,  at Grantors' expense,  to take all necessary and proper
steps for the defense of said title,  including the  employment of counsel,  the
prosecution or defense of litigation,  and the compromise or discharge of claims
made against said title.

          Section 3.08 COSTS IN COMPLYING WITH COVENANTS.  The Grantors will pay
all legal fees incurred by the Beneficiary in connection  with the  preparation,
amendment, interpretation,  administration and enforcement of this Deed of Trust
and any and all other Security  Instruments  contemplated hereby, and any action
in  defending  any  claim  or  liability  arising  out  of  or  related  to  the
transactions contemplated by this Deed of Trust. All costs and expenses incurred
in performing and complying  with Grantors'  covenants set forth herein shall be
borne solely by Grantors.  If, in  pursuance of any covenant  herein  contained,
Beneficiary  shall pay out any money  chargeable  to  Grantors,  or  subject  to
reimbursement by Grantors under the terms of this Deed of Trust,  Grantors shall
repay the same to Beneficiary  immediately at the place where the Notes or other
Indebtedness  hereby secured is payable,  together with interest  thereon at the
default  rate of  interest  set  forth  in the  Notes  or,  if no  such  rate is
applicable,  then at the maximum lawful rate of interest permitted by applicable
federal or state law to be charged  to and paid by  Grantors  from and after the
date of Beneficiary's making such payment. The sum of each such payment shall be
added to the Indebtedness hereby secured and thereafter shall form a part of the
same;  and it shall be secured by this Deed of Trust and by  subrogation  to all
the rights of the Person receiving such payment.

          Section 3.09 CONDITION OF PROPERTY;  LIENS; REMOVAL OF LIENS. Grantors
shall keep every part of the  Mortgaged  Property in first class  condition  and
presenting a first class  appearance,  make  promptly all repairs,  renewals and
replacements  necessary to such end,  prevent waste to any part of the Mortgaged
Property,  and do promptly all else  necessary  to such end; and Grantors  shall
discharge all claims for labor performed and material  furnished  therefor,  and
shall not suffer any lien of mechanics or materialmen  therefor to attach to any
part of the Mortgaged Property. Grantors shall guard every part of the Mortgaged
Property from removal,  destruction and damage, and shall not do or suffer to be
done any act  whereby  the value of any part of the  Mortgaged  Property  may be
lessened.  No building or other property now or hereafter covered by the lien of
this  Deed of Trust  shall be  removed,  demolished  or  materially  altered  or
enlarged,  nor shall any new building be constructed,  without the prior written
consent of Beneficiary.  Grantors shall not initiate, join in, or consent to any
change in any private restrictive  covenants,  zoning ordinances or other public
or

                                       9
<PAGE>

private  restrictions  limiting  or  defining  the uses  that may be made of the
Mortgaged  Property or any part  thereof  without the prior  written  consent of
Beneficiary.  Beneficiary and its agents or representatives shall have access to
the  Mortgaged  Property at all  reasonable  times in order to inspect  same and
verify  Grantors'  compliance  with  their  duties  and  obligations  under this
document.

          Section 3.10  PROHIBITION OF SALE, ETC. Except as otherwise  expressly
permitted  under the Credit  Agreement,  Grantors  shall not sell,  contract for
sale, exchange, assign, convey, transfer, mortgage, grant a security interest in
or otherwise dispose of or encumber all or any portion of the Mortgaged Property
or any Beneficial Ownership Interest or any legal or equitable right or interest
in or to the Mortgaged Property or any Beneficial Ownership Interest without the
prior written consent of  Beneficiary;  nor shall Grantors grant any easement or
right-of-way  whatever with respect to any of the Mortgaged Property without the
joinder therein of Beneficiary,  or rent or lease any of the Mortgaged  Property
for any purpose whatever for a longer period than one (1) year without the prior
written  consent  of  Beneficiary;  nor shall  Grantors  subject  the  Mortgaged
Property or any part thereof to any condominium regime or deed or declaration of
joint ownership or cooperative housing unit without the prior written consent of
Beneficiary.

          Section 3.11 SUCCESSORS TO GRANTORS. In the event the ownership of the
Mortgaged  Property or any part  thereof  becomes  vested in a person other than
Grantors,  Beneficiary may, without notice to Grantors, deal with such successor
or  successors  in  interest  with  reference  to this  Deed of Trust and to the
Indebtedness  in the same manner as with Grantors,  without in any way vitiating
or discharging  Grantors' liability hereunder or upon the Indebtedness.  No sale
of the Mortgaged Property and no forbearance on the part of Beneficiary,  and no
extension of the time for the payment of the Indebtedness, given by Beneficiary,
shall operate to release,  discharge,  modify, change or affect, either in whole
or in part, any original  liability of Grantors or the liability of the sureties
of Grantors or of any Other Liable Party.

          Section 3.12 RESERVED.

          Section 3.13 RESERVED.

          Section 3.14  BINDING  OBLIGATIONS.  This Deed of Trust does,  and the
Notes and other  Security  Instruments  to which the  Grantors  are a party upon
their  creation,  issuance,  execution and delivery will,  constitute  valid and
binding obligations of the Grantors, enforceable in accordance with their terms.

          Section  3.15 NO  LEGAL  BAR OR  RESULTANT  LIEN.  The  Notes  and the
Security Instruments,  including this Deed of Trust, to which the Grantors are a
party,  do not  and  will  not  violate  any  provisions  of the  organizational
documents of the Grantors, or any contract,  agreement, law, regulation,  order,
injunction,  judgment,  decree or writ to which the  Grantors  are  subject,  or
result in the  creation or  imposition  of any lien upon any  properties  of the
Grantors, other than those contemplated by this Deed of Trust.

                                       10
<PAGE>

          Section 3.16 NO CONSENT.  The execution,  delivery and  performance of
the Notes and the Security  Instruments,  including this Deed of Trust, to which
the  Grantors  are a party do not  require  the consent or approval of any other
person,  including without  limitation any regulatory  authority or governmental
body of the United States or any state thereof or any political  subdivision  of
the United States or any state thereof.

          Section 3.17 RESERVED.

          Section 3.18 DEFAULTS. The Grantors are not in default (in any respect
which materially and adversely affects their business, properties, operations or
condition, financial or otherwise) under any indenture, mortgage, deed of trust,
agreement or other  instrument to which the Grantors are a party or by which the
Grantors  are bound,  except as  disclosed  to the  Beneficiary  in writing.  No
default hereunder has occurred and is continuing.

          Section 3.19 COMPLIANCE WITH THE LAW. The Grantors:

          (a) are not in violation of any law,  ordinance,  or governmental rule
or regulation to which the Grantors or any of their properties are subject;

          (b) have not failed to obtain any license,  permit, franchise or other
governmental  authorization  necessary to the ownership of any of its properties
or the conduct of its businesses;

which violation or failure might  materially and adversely  affect the business,
prospects,  profits,  properties  or condition  (financial  or otherwise) of the
Grantors.

          Section 3.20  MAINTENANCE.  The  Grantors  will (i) observe and comply
with all valid laws, judgments,  injunctions, rules, regulations,  certificates,
franchises,  permits  and  licenses  (including  without  limitation  applicable
statutes,   regulations,  orders  and  restrictions  relating  to  environmental
standards or controls or to energy regulations) of all federal,  state,  county,
municipal  and  other   governmental   authorities;   and  (ii)  maintain  their
properties,  including the Mortgaged Property,  (and any properties leased by or
consigned to them or held under title retention or conditional  sales contracts)
in good and workable condition at all times and make all repairs,  replacements,
additions,  betterments and  improvements to their properties as are needful and
proper so that the business carried on in connection  therewith may be conducted
properly and efficiently at all times.

          Section 3.21 REQUIRED  INSURANCE.  The Grantors will, at the Grantors'
sole cost and expense,  maintain or cause to be  maintained  with respect to the
Mortgaged Property and each part thereof, the following insurance:

          (a) Insurance  from companies  acceptable to  Beneficiary  against any
loss or damage to the  improvements,  covered by an insurance policy of the type
known  as an "all  risk  policy,"  including  without  limitation  coverage  for
earthquakes  and  sinkholes,  in an amount of the full  replacement  cost of the
improvements  but in no event  less than  $1.5  Million  and  No/100  Dollars
($1,500,000)

                                       11
<PAGE>

(exclusive  of the cost of  excavations,  foundations,  and  footings  below the
lowest  basement  floor),  and with no more than One Thousand and No/100 Dollars
($1,000.00)  deductible  for the loss payable for any casualty.  The policies of
insurance  carried in  accordance  with this  subsection  (a) shall  contain the
"Replacement  Cost  Endorsement"  with the "Agreed  Amount  Endorsement",  and a
standard  mortgagee  clause  in favor of  Beneficiary,  including  Beneficiary's
address;

          (b)  Business  interruption  insurance  and/or loss of "rental  value"
insurance in an amount equal to at least twelve (12) months  rental  income from
all leases or subleases;

          (c) Comprehensive public liability and property insurance satisfactory
to Beneficiary, listing Beneficiary as an additional insured (including coverage
for elevators and  escalators,  if any) on the Mortgaged  Property  (and, if any
construction of new  improvements  occurs after execution of this Deed of Trust,
completed  operations  coverage  for two (2)  years  after  construction  of the
improvements  has been  completed) on an  "occurrence  basis" against claims for
"personal  injury,"  including,  without  limitation,  bodily injury,  death, or
property  damage  occurring  on,  in or about  the  Mortgaged  Property  and the
adjoining  streets,  sidewalks,  and  passageways,   such  insurance  to  afford
immediate minimum protection to a limit of not less than 1 Million and No/100
Dollars  ($__,000,000.00) with respect to personal injury or death to any one or
more persons or damage to property.  Such  insurance  shall include a Broad Form
Comprehensive General Liability Endorsement;

          (d)  During  the  course  of any  future  construction  or  repair  of
improvements  on  the  Mortgaged  Property,   workmen's  compensation  insurance
(including employer's liability insurance,  if requested by Beneficiary) for all
employees of the Grantors  engaged on or with respect to the Mortgaged  Property
in such amount as is reasonably satisfactory to Beneficiary,  or, if such limits
are established by law, in such amounts;

          (e)  During  the  course  of any  future  construction  or  repair  of
improvements on the Mortgaged Property, builder's completed value risk insurance
against "all risks of physical loss," including  collapse and transit  coverage,
during  construction of such  Improvements,  with  deductibles not to exceed One
Thousand and No/100 Dollars  ($1,000.00)  in  non-reporting  form,  covering the
total value of work performed and equipment,  supplies and materials  furnished.
Said policy of insurance shall contain the "permission to occupy upon completion
of work or occupancy" endorsement;

          (f) Boiler and machinery  insurance  covering  pressure  vessels,  air
tanks, boilers, machinery, pressure piping, heating, air conditioning,  elevator
equipment, and escalator equipment,  provided the improvements contain equipment
of such nature,  and insurance against loss of occupancy or use arising from any
such  breakdown,   in  such  amounts  as  are  reasonably  satisfactory  to  the
Beneficiary;

          (g) If the Mortgaged  Property  described herein is ever designated as
part of a flood  plain  area or any  other  designation  which  would  make such
Mortgaged  Property  subject to the  Federal  Flood  Insurance  Act of 1968,  as
amended  heretofore  or  hereafter,  or any similar law, and flood  insurance is
available,  then the Grantors agree to comply with the  requirements of said law
(including all regulations and other requirements  applicable  thereto) in order
that flood

                                       12
<PAGE>

insurance will be available to said  Grantors,  and the Grantors agree to obtain
for the benefit of the  Beneficiary  an  insurance  policy  satisfactory  to the
Beneficiary in all respects (including amount, insurer, form and otherwise),  to
deliver  such  policy to the  Beneficiary,  to pay all  expenses  in  connection
therewith and to maintain  such  insurance in full force and effect at all times
at Grantors' expense; and

          (h) Such other  insurance,  and in such  amounts,  as may from time to
time be  customarily  required  by lending  institutions  for  commercial  loans
insuring the Beneficiary against the same or other hazards.

          All 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  to   Beneficiary,
notwithstanding  any act or  negligence  of the Grantors  which might  otherwise
result in forfeiture of said insurance and the further  agreement of the insurer
waiving all rights of set off, counterclaim, or deductions against the Grantors.

          The  Grantors  may  effect for their own  account  any  insurance  not
required under this section,  but any such insurance effected by the Grantors on
the  Mortgaged  Property,  whether or not so  required,  shall be for the mutual
benefit of the  Grantors and the  Beneficiary  and shall be subject to the other
provisions of this Deed of Trust.

          Section 3.22 DELIVERY OF POLICIES,  PAYMENT OF PREMIUMS.  All policies
of  insurance  shall be issued  by  companies  and in  amounts  in each  company
satisfactory to the  Beneficiary.  All policies of insurance shall have attached
thereto a lender's loss payable  endorsement  for the benefit of the Beneficiary
in form  satisfactory to the Beneficiary,  including,  without  limitation,  any
contribution clause. The Grantors shall furnish the Beneficiary with an original
policy of all required policies of insurance. If the Beneficiary consents to the
Grantors  providing  any of the  required  insurance  through  blanket  policies
carried by the Grantors and covering more than one  location,  then the Grantors
shall furnish the  Beneficiary  with a certificate  of insurance for such policy
setting  forth the coverage,  the limits of liability,  the name of the carrier,
the policy number,  and the expiration date. At least fifteen (15) days prior to
the  expiration of each such policy the Grantors  shall furnish the  Beneficiary
with evidence  satisfactory to the Beneficiary of the payment of premium and the
reissuance of a policy continuing insurance in force as required by this Deed of
Trust.  All such policies  shall contain a provision that such policies will not
be cancelled 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 of the Beneficiary.  In the event the Grantors fail to provide, maintain,
keep in force,  or deliver and furnish to the Beneficiary any of the policies of
insurance required by the Security Instruments, the Beneficiary, without waiving
or releasing any obligations, defaults or Events of Default by Grantor, may (but
shall be under no obligation  to do so) procure and maintain  such  insurance or
single-interest insurance for such risks covering the Beneficiary's interest and
take any other action with respect thereto which  Beneficiary  deems  advisable,
and the  Grantors  will pay all  premiums  thereon  promptly  upon demand by the
Beneficiary,  and until such payment is made by the

                                       13
<PAGE>

Grantors,  the amount of all such premiums together with interest thereon at the
default rate hereinafter defined shall be secured by this Deed of Trust.

          Section 3.23 INSURANCE  PROCEEDS.  After the happening of any casualty
to the Mortgaged  Property or any part thereof,  the Grantors  shall give prompt
written notice thereof to the Beneficiary.

          (a) In the event of any damage to or destruction of the  improvements,
the  Beneficiary  shall have the option in its sole  discretion  of  applying or
paying all or part of the  insurance  proceeds (i) to any  Indebtedness  secured
hereby  and in such  order  as the  Beneficiary  may  determine,  or (ii) to the
restoration of the improvements, or (iii) to Grantors.

          (b) In the event of such loss or damage,  all  proceeds  of  insurance
shall be payable to the  Beneficiary,  and the  Grantors  hereby  authorize  and
direct any affected  insurance company to make payment of such proceeds directly
to the  Beneficiary.  The Beneficiary is hereby  authorized and empowered by the
Grantors  to settle,  adjust,  or  compromise  any claims for loss,  damage,  or
destruction under any policy or policies of insurance.

          (c) Except to the extent that  insurance  proceeds are received by the
Beneficiary  and applied to the  Indebtedness  secured  hereby,  nothing  herein
contained  shall be deemed to excuse the Grantors from  repairing or maintaining
the Mortgaged Property as provided in this Deed of Trust or restoring all damage
or destruction to the Mortgaged Property, regardless of whether or not there are
insurance  proceeds  available or whether any such  proceeds are  sufficient  in
amount,  and the  application  or release by the  Beneficiary  of any  insurance
proceeds  shall not cure or waive any  default or notice of  default  under this
Deed of Trust or invalidate any act done pursuant to such notice.

          (d) No  prepayment  premium  shall  be  applicable  to  any  insurance
proceeds received by the Beneficiary under this section.

          Section 3.24 ASSIGNMENT OF POLICIES UPON FORECLOSURE.  In the event of
foreclosure  of this Deed of Trust or other  transfer of title or  assignment of
the  Mortgaged  Property  in  extinguishment,  in whole or in part,  of the debt
secured  hereby all right,  title and  interest  of the  Grantors  in and to all
policies of insurance required by Section 3.20 shall inure to the benefit of and
pass to the successor in interest to the Grantors or the purchaser or grantee of
the  Mortgaged  Property.  The Grantors  hereby  appoint the  Beneficiary  their
attorney-in-fact to endorse any checks, drafts or other instruments representing
any proceeds of such insurance,  whether payable by reason of loss thereunder or
otherwise.  This  appointment is irrevocable  and is coupled with an interest in
such proceeds.

          Section  3.25  UTILITIES.  Grantors  shall  pay when  due all  utility
charges  which are  incurred by the  Grantors  for the benefit of the  Mortgaged
Property  or which may become a charge or lien  against  the  premises  for gas,
electricity,  water or sewer  services  furnished  to the premises and all

                                       14
<PAGE>

other  assessments  or charges of a similar  nature,  whether public or private,
affecting the  Mortgaged  Property or any portion  thereof,  whether or not such
taxes, assessments or charges are liens thereon.

          Section 3.26 APPROVAL OF MANAGEMENT COMPANY. Grantors shall not retain
or  contract  to retain any Person for the  purpose of  managing  the  Mortgaged
Property,  or any  part  thereof,  without  the  prior  written  consent  of the
Beneficiary.

          Section 3.27 SURVIVAL OF  WARRANTIES.  The Grantors agree to fully and
faithfully  satisfy and perform the obligations of the Grantors contained in the
Grantors' loan application and the Beneficiary's  loan commitment,  and any such
application  and  commitment  between  the  Grantors  and  any  assignee  of the
Beneficiary,  and each  agreement  of the  Grantors  incorporated  by  reference
therein or herein,  and any modification or amendment  thereof.  All agreements,
representations,  warranties, and covenants of the Grantors contained therein or
incorporated  by reference  shall have been true and correct when made and shall
survive the close of escrow and funding of the loan evidenced by the Notes.

          Section 3.28 ADDITIONAL SECURITY.  In the event the 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 or concurrently herewith or after a sale is made hereunder.

          Section 3.29 RESERVED.

          Section  3.30   MANAGEMENT   AGREEMENT.   Grantors   shall  assign  to
Beneficiary any and all management agreements relating to the Mortgaged Property
in form  satisfactory  to  Beneficiary  executed by Grantors and the  management
company.

          Section 3.31 LEGALITY OF LOAN.  The loan  transactions  represented by
the  Notes  and  the  Security   Instruments   complies  with  all  Governmental
Requirements and does not violate any governmental restrictions.

          Section 3.32 RESERVED.

          Section 3.33 THE AMERICAN WITH DISABILITIES ACT. Grantors shall at all
times  comply  with and cause the  Mortgaged  Property  to comply  with all laws
concerning  access of  disabled  persons,  including,  without  limitation,  The
Americans with Disabilities  Act.  Grantors agree to indemnify  Beneficiary from
and against all loss or damage  incurred by Beneficiary as a result of Grantors'
failure (i) to comply with such laws, or (ii) to cause any lessee to comply with
such laws.

                                       15
<PAGE>

                                   ARTICLE IV

                              DEFAULT; FORECLOSURE

          Section 4.01 EVENTS.  Any of the following  events shall be considered
an "Event of Default" as that term is used herein:

          (a) the  occurrence  of any "Event of Default" in such term as defined
in the Credit Agreement; or

          (b) any  representation  or warranty  made by Grantors in this Deed of
Trust  proves to have been  incorrect  in any  material  respect  as of the date
thereof;  or any representation,  statement  (including  financial  statements),
certificate  or data  furnished  or made by Grantors or any Other  Liable  Party
under any other Security  Instrument  proves to have been untrue in any material
respect,  as of the date as of which the facts  therein set forth were stated or
certified; or

          (c) default is made in the due  observance or  performance by Grantors
or any Other Liable Party of any of the  covenants  or  agreements  contained in
this Deed of Trust or any other Security Instrument,  and such default continues
unremedied  beyond the  expiration of any  applicable  grace period which may be
expressly allowed thereunder; or

          (d) any Grantor  shall have  concealed,  removed,  or  permitted to be
concealed or removed, any part of its property,  with intent to hinder, delay or
defraud its  creditors or any of them,  or made or suffered a transfer of any of
its property which may be fraudulent under any bankruptcy,  fraudulent  transfer
or similar  law; or shall have made any  transfer of its  property to or for the
benefit of a creditor at a time when other creditors similarly situated have not
been paid; or shall have suffered or permitted, while insolvent, any creditor to
obtain a lien upon any of its property through legal proceedings or distraint or
other process which is not vacated within 60 days from the date thereof; or

          (e) the  filing of  formal  charges  under a federal  or state law for
which forfeiture of any Grantor's property is a potential penalty; or

          (f)  except  as  otherwise   expressly   permitted  under  the  Credit
Agreement, the voluntary or involuntary sale, exchange, assignment,  conveyance,
transfer,  contract  for sale,  mortgage,  grant of  security  interest or other
disposition or  encumbrance of all or any portion of the Mortgaged  Property (or
any interest therein),  or all or any part of the Beneficial  Ownership Interest
or any legal or equitable  right or interest in or to the Mortgaged  Property or
any  Beneficial   Ownership  Interest  without  the  prior  written  consent  of
Beneficiary; or

          (g) the grant of any easement or right-of-way whatever with respect to
any of the Mortgaged Property without the joinder therein of Beneficiary; or

          (h) the  designation  of the Mortgaged  Property as a  condominium  or
cooperative  housing  unit or  subject  to joint  ownership,  without  the prior
written consent of Beneficiary.

                                       16
<PAGE>

          Section  4.02  REMEDIES.  Upon the  happening  of any event of default
specified  in  Section  4.01,   then,  in  any  such  event,   Beneficiary,   at
Beneficiary's option, and without notice (including without limitation notice of
default  or  Beneficiary's   intent  to  take  the  action   described   herein)
presentment, demand, protest, notice of protest or dishonor, notice of intent to
accelerate  maturity or notice of  acceleration  of  maturity,  all of which are
hereby expressly waived by Grantors, may declare the entire unpaid principal and
accrued interest on the Indebtedness secured hereby immediately due and payable,
whereupon it shall be so due and payable.

          Section 4.03 RIGHT TO  FORECLOSE;  METHOD OF SALE.  If Grantors  shall
fail to perform faithfully any covenant or agreement herein contained,  Grantors
hereby authorize and empower Trustee, and each and all of his successors in this
trust,  at the request of  Beneficiary,  at any time when  Grantors  shall be in
default  in the  performance  of any such  covenant  or  agreement,  to sell the
Mortgaged Property at public vendue to the highest bidder, for cash, at the door
of the county courthouse of the county in Texas in which the Mortgaged  Property
or any part thereof is situated, or at the area of such courthouse designated by
the  commissioners  court as the location  where real property sales are to take
place, as herein described,  on the first Tuesday of any month between the hours
of 10:00 a.m. and 4:00 p.m. and  beginning  not later than three (3) hours after
the  earliest  time at which the sale will  occur as set forth in the  notice of
sale hereinafter described,  after advertising the time, place and terms of said
sale,  and the  Mortgaged  Property  to be sold,  by posting  (or by having some
person or  persons  acting  for him  post),  for at least  twenty-one  (21) days
preceding the date of the sale,  written or printed  notice of the proposed sale
at the  courthouse  door of said county in which the sale is to be made,  and by
filing a copy of the notice in the  office of the county  clerk of the county in
which the sale is to be made at least twenty-one (21) days preceding the date of
the sale,  and if such  property is in more than one county,  one such notice of
sale shall be posted at the courthouse door of each county in which part of such
property is situated and such property may be sold at the courthouse door of any
one of such counties,  and the notice so posted shall  designate in which county
such property  shall be sold; in addition to such posting of notice,  the holder
of the Indebtedness hereby secured shall at least twenty-one (21) days preceding
the date of sale  serve  written  or  printed  notice  of the  proposed  sale by
certified  mail on Grantors and on each other debtor,  if any,  obligated to pay
the Indebtedness hereby secured according to the records of such holder. Service
of such notice  shall be  completed  upon  deposit of the notice,  enclosed in a
postpaid wrapper, properly addressed to Grantors and such other debtors at their
most recent  address or  addresses  as shown by the records of the holder of the
Indebtedness  hereby secured,  in a post office or official depository under the
care and custody of the United  States  Postal  Service.  The  affidavit  of any
person  having  knowledge  of the  facts to the  effect  that such  service  was
completed  shall be prima facie evidence of the fact of service.  Grantors agree
that no notice of any sale other than as set out in this  section  need be given
by Trustee,  Beneficiary or any other person. Grantors hereby designate as their
address for the  purposes of such notice,  the address set out above,  and agree
that such  address  shall be changed only by  depositing  notice of such change,
enclosed in a postpaid  wrapper,  in a post office or official  depository under
the care and custody of the United States Postal Service, certified mail postage
prepaid,  return receipt requested,  addressed to Beneficiary at the address for
Beneficiary  set out

                                       17
<PAGE>

herein (or to such other address as  Beneficiary  may have  designated by notice
given as above provided to Grantors and such other debtors);  any such notice of
change of address of Grantors or other debtors  shall be effective  upon receipt
by  Beneficiary.  Any change of address of Beneficiary  shall be effective three
(3) business days after  deposit  thereof in the above  described  manner in the
care and  custody  of the  United  States  Postal  Service.  Grantors  do hereby
authorize and empower Trustee, and each and all of his successors in this trust,
to sell the  Mortgaged  Property,  or any  interest  or estate in the  Mortgaged
Property,  together or in lots or parcels, as such Trustee shall deem expedient,
and to execute and  deliver to the  purchaser  or  purchasers  of the  Mortgaged
Property good and  sufficient  deed or deeds of conveyance  thereof and bills of
sale with  covenants  of general  warranty  binding on  Grantors  and  Grantors'
respective heirs, legal representatives, successors and assigns.

          Section 4.04  APPLICATION OF PROCEEDS.  Trustee making such sale shall
receive the proceeds  thereof and shall apply the same as follows:  (i) he shall
pay the reasonable  expense of executing  this trust,  including a commission to
himself  of five  percent  (5%) of the gross  proceeds  of the sale;  (ii) after
paying such  expenses,  he shall pay so far as may be possible the  Indebtedness
hereby secured, discharging first that portion of the Indebtedness arising under
the  covenants or  agreements  herein  contained and not evidenced by the Notes;
(iii) he shall pay the residue,  if any, to Grantors,  their  respective  heirs,
legal representatives,  successors or assigns.  Payment of the purchase price to
Trustee shall satisfy the obligation of the purchaser at such sale therefor, and
he shall not be bound to look after the application thereof.

         Section 4.05 SUCCESSOR  TRUSTEE.  If the herein named Trustee shall die
or become disqualified from acting in the execution of this trust, or shall fail
or refuse to execute the same when requested by Beneficiary so to do, or if, for
any reason,  Beneficiary  shall  prefer to appoint a  substitute  trustee to act
instead  of the  herein  named  Trustee,  Beneficiary  shall  have full power to
appoint,  at any time by written  instrument,  a  substitute  trustee,  and,  if
necessary,  several substitute trustees in succession,  who shall succeed to all
the estates, rights, powers and duties of Trustee named herein, and no notice of
such  appointment  need be given to Grantors or to any other person or filed for
record in any public office.  Such appointment may be executed by any authorized
agent of Beneficiary;  and if Beneficiary is a corporation and such  appointment
is executed in its behalf by any officer of such  corporation,  such appointment
shall be conclusively  presumed to be executed with authority and shall be valid
and  sufficient  without  proof of any action by the board of  directors  or any
superior  officer of the  corporation.  Grantors,  severally,  hereby ratify and
confirm any and all acts that  Trustee,  or his  successor or successors in this
trust,  shall do lawfully by virtue hereof.  Grantors hereby agree, on behalf of
Grantors and of Grantors'  respective heirs, legal  representatives,  successors
and  assigns,  that  the  recitals  contained  in any  deed or  deeds  or  other
instrument  executed in due form by any Trustee or  substitute  trustee,  acting
under the  provisions of this  instrument,  shall be prima facie evidence of the
facts  recited,  and  that it shall  not be  necessary  to  prove in any  court,
otherwise  than by such  recitals,  the  existence  of the  facts  essential  to
authorize the  execution and delivery of such deed or deeds or other  instrument
and the passing of title thereby,  and all prerequisites and requirements of any
sale or sales shall be  conclusively  presumed to have been  performed,  and all

                                       18
<PAGE>

persons  subsequently  dealing  with  the  mortgaged  property  purported  to be
conveyed  by  such  deed  or  deeds  or  other  instrument,   including  without
limitation,  the purchaser or purchasers  thereof,  shall be fully  protected in
relying upon the truthfulness of such recitals.

          Section  4.06  DISAFFIRMANCE  OF  AGREEMENTS.  The  purchaser  at  any
trustee's or foreclosure sale hereunder may disaffirm any easement  granted,  or
rental or lease  contract  made,  in violation of any  provision of this Deed of
Trust,  and may take immediate  possession of the Mortgaged  Property free from,
and despite the terms of, such grant of easement and rental or lease contract.

          Section 4.07  BENEFICIARY MAY PURCHASE.  Beneficiary may bid and being
the highest bidder therefor, become the purchaser of any or all of the Mortgaged
Property at any trustee's or foreclosure sale hereunder and shall have the right
to credit  the amount of the bid upon the  amount of the  Indebtedness  owing to
Beneficiary, in lieu of cash payment.

          Section  4.08  PARTIAL  FORECLOSURE  AND SALE.  It is  agreed  that if
default  be made  in the  payment  of any  installment  of the  Notes  or  other
Indebtedness  secured by this Deed of Trust, or in the observance or performance
of any covenant or agreement  of Grantors  contained or referred to herein,  the
holder of the  Indebtedness  or any part thereof under which such default occurs
shall have the option to proceed with  foreclosure in  satisfaction of such item
either through the courts or by directing  Trustee or his successors in trust to
proceed as if under a full foreclosure,  conducting the sale as herein provided,
and without  declaring the whole  Indebtedness due, and provided that if sale is
made because of default of an  installment,  or a part of an  installment,  such
sale  may  be  made  subject  to  the  unmatured  part  of the  Notes  or  other
Indebtedness  secured by this Deed of Trust; and it is agreed that such sale, if
so  made,  shall  not  in  any  manner  affect  the  unmatured  portion  of  the
Indebtedness, but as to such unmatured portion of the Indebtedness, this Deed of
Trust shall remain in full force and effect just as though no sale had been made
under the  provisions of this Section.  It is further  agreed that several sales
may be made  hereunder  without  exhausting  the right of sale for any unmatured
portion of the  Indebtedness,  it being the  intention of the parties  hereto to
provide for a  foreclosure  and sale of the security for any matured  portion of
the  Indebtedness  without  exhausting  the power to  foreclose  and to sell the
security for any other portion of the  Indebtedness  whether matured at the time
or subsequently  maturing. It is agreed that an assignee holding any installment
or part of any  installment  of the Notes or other  Indebtedness  secured hereby
shall  have the  same  powers  as are  hereby  conferred  on the  holder  of the
Indebtedness   to  proceed  with   foreclosure  on  a  matured   installment  or
installments,  and also to request  Trustee or  successors  in trust to sell the
Mortgaged Property or any part thereof;  but if an assignee forecloses or causes
a sale  to be made to  satisfy  any  installment,  part  of an  installment,  or
installments,  then such foreclosure or sale shall be made subject to all of the
terms and provisions  hereof with respect to the unmatured part of the Notes and
other Indebtedness secured hereby owned by the then holder of such Indebtedness.

          Section 4.09 GRANTORS'  TENANCY AT SUFFERANCE  UPON SALE. In the event
that there be a  Trustee's  sale  hereunder,  and,  if at the time of such sale,
Grantors,  or their heirs,  legal  representatives,  successors or assigns,  are
occupying the Mortgaged  Property so sold, each and all shall immediately

                                       19

<PAGE>

become  the  tenant of the  purchaser  at such sale,  which  tenancy  shall be a
tenancy from day to day, terminable at the will of either tenant or landlord, at
a reasonable  rental per day based upon the value of said property,  such rental
to be due daily to the  purchaser.  An action of  forcible  detainer  and/or any
other  legal  proceedings  shall lie if the tenant  holds over after a demand in
writing for possession of said  property;  and this agreement and Trustee's deed
shall constitute a lease and agreement under which the tenant's possession, each
and all, arose and continued.

                                    ARTICLE V

                               SECURITY AGREEMENT

          Section 5.01 SECURITY  INTEREST.  To further secure the  Indebtedness,
Grantors  hereby  grant  a  security  interest  to  Beneficiary  in  and  to the
Collateral;  but the  mention of proceeds  of  Collateral  in this Deed of Trust
shall not be construed as an authorization for the sale or surrender by Grantors
of Collateral.  This document shall constitute a security agreement as well as a
mortgage and deed of trust.

          Section 5.02 SPECIFIC COVENANTS. The following applies with respect to
Collateral:

          A. In addition to and cumulative of any other remedies granted in this
Deed of Trust to Beneficiary,  Beneficiary may, upon default hereunder,  proceed
under  Chapter  9 of the  Uniform  Commercial  Code as to all or any part of the
Collateral  and shall have and may  exercise  with respect to all or any part of
the Collateral  all of the rights,  remedies and powers of a secured party under
the Uniform Commercial Code, including,  without limitation, the right and power
to  repossess,  retain  and to sell,  at public  or  private  sale or sales,  or
otherwise dispose of, lease or utilize the Collateral or any part thereof and to
dispose  of the  proceeds  in any  manner  authorized  or  permitted  under  the
applicable  provisions of the Uniform Commercial Code, and to apply the proceeds
thereof toward payment of  Beneficiary's  reasonable  attorneys'  fees and other
expenses and costs of  pursuing,  searching  for,  receiving,  taking,  keeping,
storing,   advertising,   and  selling  the  Collateral   thereby   incurred  by
Beneficiary,  and toward payment of the Indebtedness in such order and manner as
Beneficiary may elect  consistent with the provisions of the Uniform  Commercial
Code.  Nothing in this  Section  5.02 shall be  construed to impair or limit any
other right or power to which Beneficiary may be entitled at law or in equity.

          B. Among the rights of Beneficiary  upon default and  acceleration  of
the  Indebtedness  pursuant to the provisions  hereof,  and without  limitation,
Beneficiary shall have the right (but not the obligation),  without being deemed
guilty of trespass and without liability for damages thereby occasioned:  (i) to
enter  upon  any  premises  where  said  Collateral  may be  situated  and  take
possession  of  the  Collateral,  or  render  it  unusable,  or  dispose  of the
Collateral  on  Grantors'  premises,  and  Grantors  agree  not to  resist or to
interfere;  and (ii) to take any  action  deemed  necessary  or  appropriate  or
desirable by  Beneficiary  at  Beneficiary's  option and in its  discretion,  to
repair,  refurbish

                                       20
<PAGE>

or otherwise  prepare the Collateral for sale, lease or other use or disposition
as  herein  authorized.  Beneficiary  may at  Beneficiary's  discretion  require
Grantors to assemble the  Collateral  and make it available to  Beneficiary at a
place designated by Beneficiary.

          C. Upon the  occurrence of an Event of Default,  Beneficiary  shall be
deemed irrevocably appointed agent and attorney-in-fact as to performance by the
Grantors of Grantors'  obligations  under all permits,  certificates,  licenses,
rights  to  water  and  wastewater   availability   and  capacity,   franchises,
commitments and contracts described in Granting Clause (j) hereof, and as to the
enforcement of Grantors'  rights and remedies under such permits,  certificates,
licenses, rights to water and wastewater availability and capacity,  franchises,
commitments, and contracts, and all costs, expenses and liabilities incurred and
payments  made by  Beneficiary  as such  agent  and  attorney-in-fact  shall  be
considered a loan by  Beneficiary to Grantors which shall be repayable on demand
and which shall bear  interest  at the  applicable  rate of  interest  under the
Notes.  Such appointment of Beneficiary as agent and  attorney-in-fact  shall be
deemed to be coupled with an interest.  Regarding  the existence of any Event of
Default for purposes of this Deed of Trust,  Grantors  agree that the issuers of
such  permits,   certificates,   licenses,   rights  to  water  and   wastewater
availability and capacity,  franchises,  and commitments and the contractors and
other  parties under the  contracts  may rely upon written  certifications  from
Beneficiary that such an Event of Default exists. Notwithstanding the foregoing,
Beneficiary  shall have no  obligation  whatsoever  to perform any of  Grantors'
obligations  under such  permits,  certificates,  licenses,  rights to water and
wastewater availability and capacity, franchises, commitments or contracts.

          D. Beneficiary shall give Grantors notice, by certified mail,  postage
prepaid, of the time and place of any public sale of any of the Collateral or of
the time after which any private sale or other intended  disposition  thereof is
to be made by sending  notice to Grantors at the  addresses  of Grantors set out
above at least five (5) days  before the time of the sale or other  disposition,
which  provisions  for notice  Grantors and  Beneficiary  agree are  reasonable;
provided,   however,   that  nothing  herein  shall  preclude  Beneficiary  from
proceeding  as  to  both  real  and  personal   property  in   accordance   with
Beneficiary's rights and remedies in respect to real property as provided in the
Uniform  Commercial  Code,  and without  any notice to  Grantors  except for the
notices provided for in Section 4.03 hereof.

         E.  To  the  extent  such  may  now or  hereafter  be  permitted  under
applicable  law,  Beneficiary  is  authorized  to  execute  and  file  financing
statements and continuation  statements  under the Uniform  Commercial Code with
respect to the  Collateral  without  joinder of  Grantors in such  execution  or
filing.  Grantors  shall  execute  and  deliver to  Beneficiary  such  financing
statements,   continuation  statements  and  other  documents  relating  to  the
Collateral as Beneficiary  may reasonably  request from time to time to preserve
and maintain the priority of the security interest created by this Deed of Trust
and shall pay to Beneficiary on demand any expenses and attorneys' fees incurred
by Beneficiary in connection with the preparation, execution, and filing of this
Deed of Trust and of any financing statements,  continuation statements, partial
releases,  termination  statements or other documents  necessary or desirable to
continue  or  confirm  Beneficiary's  security  interest,  or  any  modification
thereof.  This document,  and any carbon,  photographic or other reproduction of
this

                                       21
<PAGE>

document  may be filed by  Beneficiary  and shall be  sufficient  as a financing
statement. All or part of the Collateral is or is to become fixtures on the real
estate  constituting  a portion of the Mortgaged  Property,  but this  statement
shall not  impair or limit the  effectiveness  of this  document  as a  security
agreement  or financing  statement  for other  purposes,  and this Deed of Trust
shall constitute a fixture financing  statement and, as such, shall be filed for
record in the real estate records of the county in which the land covered hereby
is located.  Grantors shall not change  Grantors' name without the prior express
written consent of Beneficiary. The name of the record owner of the land covered
hereby is the party or parties defined herein as Grantors.

          F. Unless  otherwise  disclosed  to  Beneficiary  as herein  provided,
Grantors  agree that,  except for the security  interest  granted  hereby in the
Collateral, Grantors are the owners of the Collateral free of any adverse claim,
security  interest or  encumbrance,  and Grantors  shall  defend the  Collateral
against  all claims and demands of any person at any time  claiming  the same or
any  interest  therein.  Grantors  have  not  heretofore  signed  any  financing
statement  and no financing  statement  signed by Grantors is now on file in any
public office  except those  statements,  true and correct  copies of which have
been  delivered  to  Beneficiary.  So long as any amount  remains  unpaid on the
Indebtedness,  Grantors  shall not  execute  and there shall not be filed in any
public  office  any  such  financing  statement  or  statements   affecting  the
Collateral other than financing statements in favor of Beneficiary hereunder.

          G. The  security  interest  granted  herein  shall not be construed or
deemed to  constitute  Beneficiary  or  Trustee  as a trustee  or  mortgagee  in
possession of the Mortgaged Property so as to obligate Beneficiary or Trustee to
lease the  Mortgaged  Property or attempt to do the same, or to take any action,
incur any expenses or perform or  discharge  any  obligation,  duty or liability
with respect to the Mortgaged Property or any part thereof or otherwise.

          H. Grantors' and Beneficiary's addresses are as hereinabove set forth.

                                   ARTICLE VI

                            ENVIRONMENTAL COMPLIANCE

          Section 6.01 NO HAZARDOUS MATERIAL. The Grantors warrant and represent
that,  as of the  date  hereof,  there  is no  Hazardous  Material  on or in the
Mortgaged Property, or being released or discharged therefrom including, without
limitation,  all real and personal  property  described  in the granting  clause
hereof, the soil and the ground water thereof, including the streams crossing or
abutting  the  Mortgaged  Property  and the  aquifer  underlying  the  Mortgaged
Property,  whether such Hazardous Material be located or placed on or within the
Mortgaged  Property  by  spill,  release,   discharge,   disposal,  storage,  or
otherwise.  To the  best of the  Grantors'  knowledge  after  due  and  diligent
inquiry:  (i) no  part  of the  Mortgaged  Property  has  ever  been  used  as a
manufacturing,  storage, or dump site for Hazardous Material, nor is any part of
the Mortgaged Property affected by

                                       22
<PAGE>

any Hazardous Material  Contamination;  (ii) no property adjoining the Mortgaged
Property  has ever  been  used as a  manufacturing,  storage,  or dump  site for
Hazardous  Material;  and (iii) no property  adjoining the Mortgaged Property is
affected by Hazardous  Material  Contamination.  The Grantors covenant and agree
that from the date hereof  through the  Termination  Date,  the Grantors and the
Grantors' Agents shall not engage in any of the following prohibited activities,
and the  Grantors  shall use their  best and  diligent  efforts  to see that the
Grantors'  invitees  and  tenants,  and such  tenants'  employees,  agents,  and
invitees shall not:

          (a) Cause or permit any releases or discharges  of Hazardous  Material
from the Mortgaged Property; or

          (b) Cause or permit any manufacturing,  holding, handling,  retaining,
transporting,  spilling,  leaking, or dumping of Hazardous Material in or on any
portion of the Mortgaged Property; or

          (c) Otherwise place, keep, or maintain,  or allow to be placed,  kept,
or maintained,  any Hazardous Material on any portion of the Mortgaged Property;
provided however that Grantors may use janitorial and similar cleaning  supplies
in the ordinary course of its business provided further that the same are at all
times used, stored and disposed of in accordance with all applicable laws.

          Section 6.02  COMPLIANCE  WITH LAW.  From the date hereof  through the
Termination Date, the Grantors shall comply,  and cause the Grantors' Agents and
the  Mortgaged  Property  to  comply,  with all  laws,  ordinances,  rules,  and
regulations  of all  authorities  having  jurisdiction  over the  Grantors,  the
Grantors' Agents, the Mortgaged Property,  or the use of the Mortgaged Property,
and pertaining to any Hazardous Material.

          Section 6.03 REMOVAL OF HAZARDOUS  MATERIAL AND FREEDOM FROM LIENS. If
Hazardous Material is discovered on the Mortgaged  Property,  the Grantors shall
pay immediately when due the cost of removal of any Hazardous  Material from the
Mortgaged  Property in compliance with all Governmental  Requirements,  and keep
the entire  Mortgaged  Property  free of any lien imposed  pursuant to any laws,
regulations,  or orders of any governmental or regulatory authority having to do
with the removal of Hazardous Material.  Within thirty (30) days after demand by
the  Beneficiary,  the Grantors  shall obtain and deliver to the  Beneficiary  a
bond, letter of credit,  or similar  financial  assurance for the benefit of the
Beneficiary evidencing,  to the Beneficiary's  satisfaction,  that the necessary
funds are available to pay the cost of removing,  treating, and disposing of all
Hazardous Material or Hazardous Material Contamination on the Mortgaged Property
and  discharging  any  assessments  or liens  which  may be  established  on the
Mortgaged Property as a result thereof.

          Section 6.04 HAZARDOUS MATERIAL REPORTS. No report,  analysis,  study,
or other document asserting that Hazardous Material  Contamination exists on the
Mortgaged  Property or identifying any Hazardous  Material as being located upon
or released or  discharged  from the  Mortgaged  Property has been  issued.  The
Grantors shall:

                                       23
<PAGE>

         (a) Give  notice  to the  Beneficiary  immediately  upon the  Grantors'
acquiring  knowledge of the presence of any Hazardous  Material on the Mortgaged
Property  or of  any  Hazardous  Material  Contamination  thereon,  with  a full
description thereof;

          (b)  Immediately  advise the  Beneficiary  in  writing of any  notices
received by the Grantors or the  Grantors'  Agents  alleging  that the Mortgaged
Property contains Hazardous Material or Hazardous Material Contamination or that
a violation or potential violation of any Governmental  Requirements relating to
Hazardous  Material by the  Grantors,  the  Grantors'  Agents,  or the Mortgaged
Property  exists  (whether  such  notices are  received  from the  Environmental
Protection  Agency,  the  Occupational  Safety and Health  Agency,  or any other
federal, state or local governmental agency or regional office thereof);

          (c)  Immediately  advise  the  Beneficiary  in  writing of any and all
enforcement,  cleanup,  removal  or other  governmental  or  regulatory  actions
instituted,  completed or threatened  with respect to the Mortgaged  Property or
any property  adjoining  the  Mortgaged  Property  pursuant to any  Governmental
Requirements relating to Hazardous Material;

          (d)  Immediately  advise the Beneficiary in writing of all claims made
or threatened by any third party against the Grantors,  the Grantors' Agents, or
the  Mortgaged  Property  relating  to  damage,   contribution,   cost  recovery
compensation,  loss or injury resulting from any Hazardous Material or Hazardous
Material Contamination pertaining to the Mortgaged Property; and

          (e)  Immediately  advise the Beneficiary in writing upon the Grantors'
discovery of any  occurrence or condition on any real  property  adjoining or in
the vicinity of the Mortgaged Property which does, or could, cause the Mortgaged
Property,  or any part  thereof,  to contain  Hazardous  Material  or  Hazardous
Material  Contamination  or  otherwise  be  in  violation  of  any  Governmental
Requirements  relating to Hazardous Material, or cause the Mortgaged Property to
be subject to any restrictions on the ownership,  occupancy,  transferability or
use thereof under any Governmental Requirements relating to Hazardous Material.

          Section 6.05 OTHER  PROPERTY OF THE GRANTORS.  The Grantors  covenant,
warrant,  and represent  that there is no property owned or used by the Grantors
which contains Hazardous Material or Hazardous Material Contamination,  emits or
discharges   Hazardous   Material,   or  otherwise   violates  any  Governmental
Requirements  relating to  Hazardous  Material,  such that a charge or lien as a
result  thereof  could be placed upon the Mortgaged  Property,  or any liability
therefor could be imposed upon the Grantors.

          Section 6.06 REMEDIAL ACTION, THE BENEFICIARY'S  CONSENT.  Without the
Beneficiary's prior written consent,  which shall not be unreasonably  withheld,
the Grantors  shall not take any remedial  action in response to the presence of
any Hazardous  Material or Hazardous  Material  Contamination  upon or about the
Mortgaged Property, nor enter into any settlement agreement,  consent decree, or
other  compromise  in  respect to any  violation  or  alleged  violation  of any
Governmental Requirements

                                       24

<PAGE>

relating to Hazardous Material,  which remedial action,  settlement,  consent or
compromise  might,  in the  Beneficiary's  judgment,  impair  the  value  of the
Beneficiary's  security  hereunder;  provided,  however,  that the Beneficiary's
prior consent shall not be necessary in the event that the presence of Hazardous
Material or Hazardous Material  Contamination on or about the Mortgaged Property
either  poses an  immediate  threat  to the  health,  safety or  welfare  of any
individual  or is of  such a  nature  that an  immediate  remedial  response  is
necessary  and it is not  possible to obtain the  Beneficiary's  consent  before
taking such action.  In such event, the Grantors shall notify the Beneficiary as
soon as practicable of any action so taken.  The Beneficiary  shall not withhold
its  consent,  where  such  consent is  required  hereunder,  if  either:  (i) a
particular remedial action is ordered by a court of competent  jurisdiction;  or
(ii) the Grantors  establish to the reasonable  satisfaction  of the Beneficiary
that there is no  reasonable  alternative  to such  remedial  action which would
result in less impairment of the Beneficiary's security hereunder.

          Section 6.07 THE BENEFICIARY'S  CORRECTIVE  ACTION. In addition to the
other  remedies   provided  to  the   Beneficiary   elsewhere  in  the  Security
Instruments,  the  Beneficiary  shall have the right,  but not the obligation to
cause all Hazardous Material or Hazardous Material  Contamination found on or in
the Mortgaged Property to be removed  therefrom,  and in such event, the cost of
the removal, including all expenses,  charges, and fees incurred by the Grantors
in connection therewith,  including attorneys,  engineers, and consultants fees,
shall be secured by this Deed of Trust,  shall be  payable  by the  Grantors  on
demand and shall bear  interest at the default  rate  provided in the Notes from
the date advanced until paid. The Grantors shall give to the Beneficiary and its
agents and employees access to the Mortgaged Property for such purposes; and the
Grantors hereby grant to the Beneficiary,  its agents and employees,  full right
and  authority  to remove any such  Hazardous  Material  or  Hazardous  Material
Contamination from the Mortgaged Property.

          Section 6.08 ENVIRONMENTAL  ASSESSMENT.  The Beneficiary,  at any time
and from time to time during the term of the Notes,  if it has reasonable  cause
to suspect that any provision of this Article VI is not being complied with, may
notify the Grantors in writing that it desires an environmental  site assessment
of the  Mortgaged  Property to be made,  and at any time  thereafter  cause such
environmental  site  assessment  to be made  of the  Mortgaged  Property  at the
Grantors'  sole  expense.  Such  assessment(s)  shall be  performed  in a manner
reasonably  calculated to confirm and verify  compliance  with the provisions of
this Article VI. Such results  shall be kept  confidential  by both the Grantors
and the  Beneficiary  unless  either  party is legally  compelled or required to
disclose such results,  or disclosure is reasonably  required in order to pursue
rights or remedies  provided  herein or at law. If the Grantors  fail to pay for
the  assessment(s) as provided for herein within fifteen (15) days of receipt of
billing  therefor,  the  Beneficiary  may,  at its  election,  declare a default
hereunder,  and, with or without declaring such default, add the cost thereof to
the  indebtedness  secured by this Deed of Trust,  in which case interest  shall
accrue at the  default  rate  provided  in the Notes on such amount from the day
after billing until paid by the  Grantors.  The Grantors  covenant to reasonably
cooperate  with  the  persons  conducting  the  assessment  to allow  entry  and
reasonable  access to all portions of the Mortgaged  Property for the purpose of
the  assessment,  to supply  such  persons  with all  available  historical  and
operational  information  regarding the Mortgaged  Property as may

                                       25
<PAGE>

reasonably be requested by such persons, and to make available for meetings with
the persons conducting the assessment  appropriate personnel having knowledge of
matters relevant to the assessment. The Grantors covenant to comply, at its sole
cost  and  expense,  with  all  recommendations  contained  in  the  assessment,
including any  recommendation  for additional  testing and studies to detect the
presence  of  Hazardous  Material or  Hazardous  Material  Contamination,  or to
otherwise  confirm and verify  Grantors'  compliance with the provisions of this
Article VI, to the extent required by Beneficiary.

          Section 6.09 INDEMNITY AND HOLD HARMLESS. The Grantors shall be solely
responsible  for,  and  hereby  agree to  indemnify  and  hold  the  Beneficiary
(including  the  respective  successors,   assigns,   shareholders,   directors,
officers,  employees  and  agents of  Beneficiary)  harmless  from,  any and all
actions,  loss,  liability,  damage,  cost,  imposition  of a  lien  or  expense
occasioned  by,  resulting  from, or  consequent  to any  Hazardous  Material or
Hazardous  Material  Contamination  on the Mortgaged  Property;  any releases or
discharges of Hazardous Material from the Mortgaged Property; any manufacturing,
maintaining,  holding, handling,  transporting,  spilling, leaking or dumping of
Hazardous  Material on or at the Mortgaged  Property,  or any other violation of
any  Governmental  Requirements  relating to  Hazardous  Material;  any claim or
assertion that any such Hazardous Material or Hazardous  Material  Contamination
is so  located  on the  Mortgaged  Property  or  that  any  such  activities  or
violations have been, or are being, engaged in on the Mortgaged Property; or any
other failure or alleged failure of Grantors, Grantors' Agents, or the Mortgaged
Property to comply with the provisions of this Article VI,  notwithstanding  any
and all  attempts by the  Grantors to exercise  due  diligence  in  ascertaining
whether or not any of the events  outlined above affect the Mortgaged  Property.
Such loss, liability,  damage, cost, or expense hereby indemnified against shall
include, without limitation:

          (a) All consequential damages;

          (b)  The  costs  of any  required  or  necessary  repair,  cleanup  or
detoxification  of the Mortgaged  Property,  including the soil and ground water
thereof,  and the preparation  and  implementation  of any closure,  remedial or
other required plans;

          (c) Damage to any natural resources; and,

          (d) All reasonable  costs and expenses  incurred by the Beneficiary in
connection  with clauses (a),  (b) and (c) above,  including  but not limited to
reasonable  attorneys' and consultants' fees. All costs and expenses incurred by
the  Beneficiary  for  which  the  Grantors  are  responsible,  or for which the
Grantors have  indemnified the Beneficiary  shall be paid by the Grantors to the
Beneficiary upon demand therefore.

The  Beneficiary  shall  have the  right,  but not the  obligation,  to join and
participate  in (as a  party  if it so  elects),  any  legal  or  administrative
proceedings  or  actions  initiated  in  connection  with  any  allegation  that
Grantors, Grantors' Agents, or the Mortgaged Property violate, or have violated,
any

                                       26
<PAGE>

provision  of this  Article  VI, and to have  their  reasonable  attorneys'  and
consultants' fees in connection  therewith paid by the Grantors upon demand. The
aforesaid   indemnification  and  hold  harmless  agreement  shall  benefit  the
Beneficiary  from the date hereof and shall not be terminated on the Termination
Date,  but  shall  continue  thereafter   notwithstanding  payment,  release  or
discharge of this Deed of Trust or the Indebtedness secured hereby; and, without
limiting the generality of the foregoing such obligations shall continue for the
benefit of Beneficiary,  and their successors and assigns,  during and following
any  possession  of the  Mortgaged  Property  thereby  or any  ownership  of the
Mortgaged  Property by the  Beneficiary or its  successors and assigns,  whether
arising  by  foreclosure  or sale  under  the  power of sale  contained  herein,
transfer by deed in lieu of any such sale,  or otherwise;  such  indemnification
and hold harmless  agreement to continue  forever.  In the event that the Notes,
this  Deed of  Trust or any  other  Security  Instrument  contains  a  provision
pursuant to which the  Grantors  are  relieved of  personal  liability  for such
indebtedness,  such  release of personal  liability  shall not include a release
from Grantors' liabilities and obligations under this Article VI.

          Section  6.10  GRANTORS'  FAILURE TO COMPLY.  In addition to any other
right or  remedy  contained  in this Deed of  Trust,  or in any  other  Security
Instrument,  if the Grantors shall fail to comply with any term,  provision,  or
requirement  of this  Article  VI, and if such  failure  to comply  shall not be
corrected within the lesser of the following time periods:

          (a) Fifteen (15) days after notice thereof from Beneficiary; or

          (b) The time period  specified by any  governmental or regulatory body
for corrective action with respect to such failure to comply;

then such failure to comply shall, at Beneficiary's election and without further
notice,  constitute  an Event of  Default  under  this Deed of Trust.  Provided,
however,  if Grantors'  failure to comply shall be of such nature that it cannot
reasonably be corrected within the correction period, and if the Grantors shall,
within said  correction  period,  commence  during such  failure to comply,  and
thereafter  diligently  prosecute  such  corrective  action to  completion,  and
provided the governmental or regulatory body having jurisdiction with respect to
such  failure  shall not  object,  then the  Grantors  shall  have a  reasonable
additional period beyond said correction period in which to cure such failure to
comply.

                                   ARTICLE VII

                                     GENERAL

          Section 7.01 PARTIAL RELEASES.  Any part of the Mortgaged Property may
be released by Beneficiary  without  affecting the lien,  security  interest and
rights hereof  against the  remainder.  The lien,  security  interest and rights
hereby  granted shall not affect or be affected by any other  security taken for
the Indebtedness or any part thereof. The taking of additional security,  or the
extension or

                                       27
<PAGE>

renewal of the  Indebtedness  or any part  thereof,  shall at no time release or
impair the lien,  security  interest and rights  granted  hereby,  or affect the
liability  of any  Other  Liable  Party,  or  improve  the  right of any  junior
lienholder;  and this Deed of Trust,  as well as any instrument  given to secure
any renewal or extension of the Indebtedness,  or any part thereof, shall be and
remain a first and prior  lien and  security  interest  on all of the  Mortgaged
Property not expressly released, until the Indebtedness is completely paid.

          Section  7.02  INVALIDITY.  The  invalidity,  or  unenforceability  in
particular  circumstances,  of any  provision  of this  Deed of Trust  shall not
extend beyond such  provision or such  circumstances  and no other  provision of
this instrument shall be affected thereby.

          Section  7.03 USURY.  It is the  intention of  Beneficiary  to conform
strictly to applicable usury laws. Accordingly, if the transactions contemplated
hereby  would  be  usurious   under   applicable   law,  then,  in  that  event,
notwithstanding  anything  to the  contrary  in any  agreement  entered  into in
connection  with or as security for the Notes or any  instrument  evidencing the
Indebtedness,  it is agreed as follows:  (a) the aggregate of all  consideration
which  constitutes  interest  under  applicable  law  that is  taken,  reserved,
contracted  for,  charged or received  under the Notes or under any of the other
aforesaid   agreements  or  otherwise  in  connection  with  the  Notes  or  the
Indebtedness shall under no circumstances  exceed the maximum amount of interest
allowed by applicable law, and any excess shall be credited on the Notes and the
Indebtedness by the holder thereof (or, if the Notes and the Indebtedness  shall
have been paid in full, refunded to Grantors);  (b) determination of the rate of
interest for determining  whether the loans under the Notes and the Indebtedness
are usurious shall be made by amortizing,  prorating,  allocating and spreading,
during the term of such  loans if no demand is made,  all  interest  at any time
contracted  for,  charged or received from the Grantors in connection  with such
loans,  and any excess shall be cancelled,  or credited or refunded as set forth
in  (a)  herein;  and  (c) in the  event  that  maturity  of  the  Notes  or the
Indebtedness  is  accelerated  by reason of an  election  by the  holder  hereof
resulting  from any  default  hereunder  or  otherwise,  or in the  event of any
required or  permitted  prepayment,  then such  consideration  that  constitutes
interest may never  include more than the maximum  amount  allowed by applicable
law, and excess interest,  if any,  provided for in the Notes or otherwise shall
be cancelled  automatically  as of the date of such  acceleration  or prepayment
and, if theretofore prepaid,  shall be credited on the Notes or the Indebtedness
(or if the Notes and the Indebtedness shall have been paid in full,  refunded to
Grantors).

          Section 7.04 WAIVERS.  Grantors,  or Grantors' respective heirs, legal
representatives,  successors or assigns, shall not have or assert, and do hereby
waive, any right,  under any statute or rule of law pertaining to the marshaling
of assets,  a sale in inverse order of  alienation,  the exemption of homestead,
the administration of estates of decedents, or other matter whatever, to defeat,
reduce or affect the lien,  security  interest and rights of Beneficiary,  under
the terms of this Deed of Trust,  to a sale of the  Mortgaged  Property  for the
collection  of the  Indebtedness  (without  any prior or  different  resort  for
collection), or the right of Beneficiary, under the terms of this Deed of Trust,
to the payment of the  Indebtedness out of the proceeds of sale of the Mortgaged
Property  in  preference

                                       28
<PAGE>

to every  other  person and  claimant  whatever  (only  reasonable  expenses  as
aforesaid being first deducted).

          Section  7.05  ACTION BY  BENEFICIARY  NOT A WAIVER.  It is  expressly
agreed  that:  (a) no waiver of any default on the part of Grantors or breach of
any of the  provisions of this Deed of Trust shall be considered a waiver of any
other or subsequent default or breach, and no delay or omission in exercising or
enforcing the rights and powers herein granted shall be construed as a waiver of
such rights and powers, and likewise no exercise or enforcement of any rights or
powers hereunder shall be held to exhaust such rights and powers, and every such
right  and  power  may be  exercised  from  time to  time;  (b) any  failure  by
Beneficiary  to insist  upon the strict  performance  by  Grantors of any of the
terms  and  provisions  hereof  shall not be deemed to be a waiver of any of the
terms and provisions hereof, and Beneficiary,  notwithstanding any such failure,
shall  have the  right  thereafter  to insist  upon the  strict  performance  by
Grantors of any and all of the terms and  provisions of this Deed of Trust;  (c)
neither Grantors nor any Other Liable Party shall be relieved of such obligation
by reason of the failure of Beneficiary or Trustee to comply with any request of
Grantors, or of any other person so obligated,  to take action to foreclose this
Deed of Trust or otherwise  enforce any of the  provisions of this Deed of Trust
or of any  obligations  secured  by this  Deed of  Trust,  or by  reason  of the
release,  regardless of consideration,  of the whole or any part of the security
held for the Indebtedness, or by reason of the subordination in whole or in part
by Beneficiary of the lien,  security interest or rights evidenced hereby, or by
reason of any agreement or stipulation  with any  subsequent  owner or owners of
the Mortgaged  Property  extending the time of payment or modifying the terms of
the Indebtedness or this Deed of Trust without first having obtained the consent
of Grantors or such other  person,  and, in the latter  event,  Grantors and all
such other persons shall continue liable to make such payments  according to the
terms of any such  agreement  of  extension  or  modification  unless  expressly
released  and   discharged  in  writing  by   Beneficiary;   (d)  regardless  of
consideration,  and  without the  necessity  for any notice to or consent by the
holder of any subordinate lien or security  interest on the Mortgaged  Property,
Beneficiary  may release the  obligation of anyone at any time liable for any of
the  Indebtedness or any part of the security held for the  Indebtedness and may
extend  the time of payment or  otherwise  modify the terms of the  Indebtedness
and/or this Deed of Trust without,  as to the security or the remainder thereof,
in anywise  impairing or affecting the lien or security interest of this Deed of
Trust or the  priority of such lien or security  interest,  as security  for the
payment of the  Indebtedness  as it may be so  extended  or  modified,  over any
subordinate lien or security interest; (e) the holder of any subordinate lien or
security  interest  shall have no right to  terminate  any lease  affecting  the
Mortgaged  Property  whether  or not such lease be  subordinate  to this Deed of
Trust; and (f) Beneficiary may resort for the payment of the Indebtedness to any
security  therefor held by  Beneficiary  in such order and manner as Beneficiary
may elect.

          Section 7.06 APPLICATION OF PAYMENTS.  In the event any portion of the
Indebtedness is not, for any reason whatsoever, secured by this Deed of Trust on
the Mortgaged Property, the full amount of all payments made on the Indebtedness
shall first be applied to such unsecured  portion of the Indebtedness  until the
same has been fully paid.

                                       29
<PAGE>

          Section 7.07 PRIOR  INDEBTEDNESS.  To the extent that  proceeds of the
Notes are used to pay any prior  indebtedness  secured by an  outstanding  lien,
security interest,  charge or prior encumbrance  against the Mortgaged Property,
such  proceeds  have been  advanced by  Beneficiary  at Grantors'  request;  and
Beneficiary shall be subrogated to any and all rights, powers,  equities,  liens
and  security  interests  owned or  granted by any owner or holder of such prior
indebtedness, irrespective of whether said security interests, liens, charges or
encumbrances are released of record.

          Section 7.08  WITHDRAWAL  OF ACTION.  In the event  Beneficiary  shall
elect to invoke any of the rights or remedies  provided  for  herein,  but shall
thereafter  determine to withdraw or discontinue  same for any reason,  it shall
have  the  unqualified   right  to  do  so,   whereupon  all  parties  shall  be
automatically  restored and returned to their respective positions regarding the
Indebtedness  and this document as shall have existed prior to the invocation of
Beneficiary's   rights  hereunder  and  the  rights,   powers  and  remedies  of
Beneficiary hereunder shall be and remain in full force and effect.

          Section 7.09 FURTHER  ACTION.  Grantors  agree that they shall execute
and deliver such other and further  documents and do and perform such other acts
as may be  reasonably  necessary  and proper to carry out the  intention  of the
parties as herein  expressed and to effect the purposes of this document and the
loan  transaction  referred  to herein.  Without  limitation  of the  foregoing,
Grantors  agree to execute and deliver  such  documents  as may be  necessary to
cause the liens and security  interests granted hereby to cover and apply to any
property  placed  in,  or about  the  Mortgaged  Property  in  addition  to,  or
replacement or substitute for any of the Mortgaged Property.

          Section 7.10 SUCCESSORS AND ASSIGNS.  The covenants  herein  contained
shall  inure to the benefit of  Beneficiary  and  Trustee,  their  heirs,  legal
representatives,   successors  and  assigns,  and  shall  be  binding  upon  the
respective heirs, legal representatives, successors and assigns of Grantors, and
any subsequent  owner or owners of the Mortgaged  Property,  but nothing in this
Section  shall  constitute an  authorization  for Grantors to sell or in any way
dispose of the Mortgaged Property or any part thereof if otherwise prohibited by
any of the terms hereof.

          Section  7.11  DEFEASANCE.  All of the  covenants  and  agreements  of
Grantors  set forth  herein  shall  survive the  execution  and delivery of this
document  and shall  continue  in full force until the  Indebtedness  is paid in
full.  No release of this  conveyance  or the lien thereof shall be valid unless
executed by Beneficiary.

          Section  7.12 CHOICE OF LAW.  This Deed of Trust and the  Indebtedness
arising in connection herewith shall be governed by, and construed in accordance
with,  the laws of the  State of  Minnesota  applicable  to  contracts  made and
performed in such State and any  applicable law of the United States of America,
including,  without  limiting  the  generality  of  the  foregoing,  matters  of
construction,  validity and performance, except that at all times the provisions
for  the  creation,  perfection,  and  enforcement  of the  liens  and  security
interests  created pursuant hereto shall be governed by and construed  according
to the law of Texas, it being  understood  that, to the fullest extent permitted
by the law of Texas, the law of the State of Minnesota shall govern the validity
and the  enforceability

                                       30
<PAGE>

of this Deed of Trust and the Indebtedness  arising in connection  herewith.  To
the fullest  extent  permitted  by law,  Mortgagor  hereby  unconditionally  and
irrevocably  waives any claim to assert  that the law of any other  jurisdiction
governs this Deed of Trust, the Credit  Agreement,  the Notes and the other Loan
Documents and this Deed of Trust, the Credit Agreement,  the Notes and the other
Loan Documents shall be governed by and construed in accordance with the laws of
the State of Minnesota.

          Section 7.13 REMEDIES  CUMULATIVE.  The execution and delivery of this
Deed of Trust in no  manner  shall  impair  or affect  any  other  security  (by
endorsement or otherwise) for the  Indebtedness.  No security taken hereafter as
security for the Indebtedness  shall impair in any manner or affect this Deed of
Trust.  All such  present  and future  additional  security,  and all rights and
remedies under any and all Security Instruments,  shall be cumulative and may be
pursued singly or together.

          SECTION 7.14 DTPA WAIVER. GRANTORS ACKNOWLEDGE AND AGREE, ON GRANTORS'
OWN BEHALF AND ON BEHALF OF ANY PERMITTED ASSIGNS AND SUCCESSORS HEREAFTER, THAT
THE DTPA IS NOT APPLICABLE TO THIS  TRANSACTION.  ACCORDINGLY,  GRANTORS' RIGHTS
AND REMEDIES  WITH RESPECT TO THE  TRANSACTION  CONTEMPLATED  UNDER THIS DEED OF
TRUST,  THE NOTES AND ALL OTHER  SECURITY  INSTRUMENTS,  AND WITH RESPECT TO ALL
ACTS OR PRACTICES OF THE  BENEFICIARY,  PAST,  PRESENT OR FUTURE,  IN CONNECTION
WITH SUCH  TRANSACTION,  SHALL BE  GOVERNED BY LEGAL  PRINCIPLES  OTHER THAN THE
DTPA. IN FURTHERANCE THEREOF, GRANTORS AGREE AS FOLLOWS:

          (A) GRANTORS  REPRESENT THAT GRANTORS HAVE KNOWLEDGE AND EXPERIENCE IN
FINANCIAL AND BUSINESS  MATTERS THAT ENABLE  GRANTORS TO EVALUATE THE MERITS AND
RISKS OF THE  BUSINESS  TRANSACTION  THAT IS THE  SUBJECT OF THIS DEED OF TRUST.
GRANTORS  ALSO  REPRESENT  THAT  GRANTORS ARE NOT IN A  SIGNIFICANTLY  DISPARATE
BARGAINING  POSITION IN RELATION TO  BENEFICIARY.  GRANTORS HAVE  NEGOTIATED THE
LOAN DOCUMENTS WITH BENEFICIARY AT ARM'S LENGTH AND HAVE WILLINGLY  ENTERED INTO
THE LOAN DOCUMENTS.

          (B) GRANTORS  REPRESENT  THAT (I) GRANTORS  HAVE BEEN  REPRESENTED  BY
FISCHBEIN,  BADILLO,  WAGNER &  HARDING,  AS LEGAL  COUNSEL  IN THE  TRANSACTION
CONTEMPLATED  BY  THIS  DEED  OF  TRUST,   THE  NOTES  AND  ALL  OTHER  SECURITY
INSTRUMENTS,  AND  (II)  SUCH  LEGAL  COUNSEL  WAS NOT  DIRECTLY  OR  INDIRECTLY
IDENTIFIED, SUGGESTED OR SELECTED BY BENEFICIARY OR AN AGENT OF BENEFICIARY.

          (C)  THIS  AGREEMENT   RELATES  TO  A  TRANSACTION   INVOLVING   TOTAL
CONSIDERATION  BY  GRANTOR OF MORE THAN  $100,000.00  AND DOES NOT  INVOLVE  THE
GRANTORS' RESIDENCE.

GRANTORS  AGREE,  ON GRANTORS'  OWN BEHALF AND ON BEHALF OF GRANTORS'  PERMITTED
ASSIGNS AND SUCCESSORS,  THAT ALL OF THE GRANTORS' RIGHTS AND REMEDIES UNDER THE
DTPA ARE WAIVED AND RELEASED,  INCLUDING SPECIFICALLY,  WITHOUT LIMITATION,  ALL
RIGHTS AND REMEDIES  UNDER THE DTPA RESULTING FROM OR ARISING OUT OF ANY AND ALL
ACTS OR PRACTICES OF BENEFICIARY IN CONNECTION  WITH THIS  TRANSACTION,  WHETHER
SUCH ACTS OR  PRACTICES  OCCUR  BEFORE OR AFTER  THE  EXECUTION  OF THIS

                                       31
<PAGE>

DEED OF TRUST;  PROVIDED,  HOWEVER,  NOTWITHSTANDING  ANYTHING  TO THE  CONTRARY
HEREIN,  GRANTORS  DO NOT  WAIVE  SECTION  17.555 OF THE  DTPA.

         IN  FURTHERANCE THEREOF, GRANTORS AGREE THAT BY SIGNING THIS AGREEMENT,
GRANTORS AND ANY  PERMITTED  ASSIGNS AND  SUCCESSORS  ARE BOUND BY THE FOLLOWING
WAIVER:

         WAIVER OF  CONSUMER  RIGHTS.  GRANTORS  WAIVE  THEIR  RIGHTS  UNDER THE
         DECEPTIVE TRADE  PRACTICES--CONSUMER  PROTECTION ACT,  SECTION 17.41 ET
         SEQ.,  BUSINESS & COMMERCE CODE, TO THE EXTENT  APPLICABLE,  A LAW THAT
         GIVES CONSUMERS SPECIAL RIGHTS AND PROTECTION.  AFTER CONSULTATION WITH
         AN ATTORNEY OF GRANTORS' OWN SELECTION, GRANTORS VOLUNTARILY CONSENT TO
         THIS WAIVER.

          Section 7.15 RELEASE OF LIABILITY.  To the maximum extent permitted by
law from time to time in effect, each Grantor hereby knowingly,  voluntarily and
intentionally  (and after each has consulted with its own attorney)  irrevocably
and unconditionally  agrees that no claim may be made by any Grantor against the
Beneficiary or any of its  affiliates,  participants,  shareholders,  directors,
officers,  employees,  attorneys,  accountants, or agents or any of its or their
successors and assigns,  for any actual,  special,  indirect,  consequential  or
punitive damages in respect of any breach or wrongful conduct (whether the claim
is based on  contract,  tort or  statute)  arising  out of, or  related  to, the
transactions  contemplated by any of this Deed of Trust, the Notes, the Security
Instruments  or any other  related  documents,  or any act,  omission,  or event
occurring in connection herewith or therewith.  In furtherance of the foregoing,
each Grantor  hereby  waives,  releases and agrees not to sue upon any claim for
any such  damages,  whether or not accrued and whether or not known or suspected
to exist in its  favor,  and each  Grantor  shall  indemnify  and hold  harmless
Beneficiary and its affiliates, participants, shareholders, directors, officers,
employees, attorneys, accountants and agents and their successors and assigns of
and from any such claims.  Upon the full payment of the Indebtedness,  and prior
to  Beneficiary  releasing  any lien or security  interest in property  given to
secure the Indebtedness, Grantors shall execute a release agreement, in form and
substance  satisfactory to Beneficiary,  releasing Beneficiary and Beneficiary's
affiliates, participants,  shareholders,  directors, officers, employees, agents
and  attorneys  from any and all  claims,  demands,  actions,  causes of action,
costs,  expenses  and  liabilities  whatsoever,  known or unknown,  at law or in
equity, which the Grantors may have, as of the date of execution of such release
or  in  the  future,  against  the  Beneficiary  and  Beneficiary's  affiliates,
participants,   shareholders,   directors,   officers,   employees,  agents  and
attorneys,  arising  out of or in  connection  with  this  Deed of  Trust or any
related documents.

          Section 7.16  MODIFICATIONS.  All  modifications  of any of the terms,
provisions, conditions or requirements of the Notes, Security Instruments or any
other  related  document  must be in writing and signed by a Vice  President  of
Beneficiary.

          Section 7.17 NOTICE.  Any notice given hereunder or under the Notes or
Security  Instruments  shall be given in accordance with the terms or provisions
set forth in the Credit Agreement.

                                       32
<PAGE>

          Section 7.18 RESERVED.

          Section 7.19 NON-ASSIGNABILITY OF PROCEEDS. The loan proceeds provided
for pursuant to the Notes and the Security Instruments are not assignable by the
Grantors. The Notes and Security Instruments pertain to financial accommodations
for the benefit of the Grantors  and cannot be  transferred  to,  assigned to or
assumed by any other person or entity either voluntarily or by operation of law.
In the  event any  Grantor  becomes a debtor  under the  Bankruptcy  Code of the
United States or under the law of any foreign country,  any trustee or debtor in
possession may not assume or assign this agreement nor delegate the  performance
of any provision hereunder.

          Section 7.20 VENUE;  WAIVER OF JURY TRIAL.  The parties  hereto hereby
(i) consent to the personal jurisdiction of the state and federal courts located
in the State of Minnesota in  connection  with any  controversy  related to this
Deed of Trust;  (ii)  waives  any  argument  that venue in any such forum is not
convenient,  (iii)  agrees  that  any  litigation  initiated  by  any  party  in
connection  with this Deed of Trust or the other Loan Documents  shall be venued
in either the District Court of Hennepin County, Minnesota, or the United States
District Court, District of Minnesota,  Fourth Division;  and (iv) agrees that a
final  judgment in any such suit,  action or proceeding  shall be conclusive and
may be enforced in other  jurisdictions  by suit on the judgment or in any other
manner  provided by law.  Notwithstanding  the  forgoing,  nothing  herein shall
affect the right of the Lender to effect  service of process in any other manner
permitted by law or shall limit the right to sue in any other jurisdiction.  THE
PARTIES WAIVE ANY RIGHT TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING BASED ON OR
PERTAINING TO THIS DEED OF TRUST.

          Section  7.21 SOLE  DISCRETION  OF LENDER.  Wherever  pursuant  to any
Security Instruments (a) Beneficiary  exercises any right given to it to approve
or disapprove, (b) any arrangement or term is to be satisfactory to Beneficiary,
or (c) any other decision or  determination  is to be made by Beneficiary at its
option or discretion,  the decision of Beneficiary to approve or disapprove, all
decisions that  arrangements or terms are  satisfactory or not  satisfactory AND
all other decisions and determinations made by Beneficiary, shall be in the sole
and absolute discretion of Beneficiary and shall be final and conclusive, except
as may  be  otherwise  expressly  and  specifically  provided  in  the  Security
Instrument.

         [The remainder of this page has been intentionally left blank.]

                                       33
<PAGE>

          IN TESTIMONY  WHEREOF,  Grantors have executed this document as of the
date first above written.

                                   GRANTORS:
                                   --------

                                   OUR FOOD PRODUCTS GROUP, INC.

                                   By:  Julie P. Tedesco
                                      ------------------------------
                                   Name:  Julie P. Tedesco
                                        ----------------------------
                                   Title: CFO
                                         ---------------------------

THE STATE OF TEXAS      )
                        )
COUNTY  OF HAYS         )

          This  instrument  was  acknowledged  before me on the 31st day of May,
2000, by Julie Tedesco,  the Chief Financial Officer of Our Food Products Group,
Inc., a Texas corporation, on behalf of said corporation.

                                    /s/ Jay S. Fitzgerald
                                    ---------------------------------
                                    Notary Public, State of Texas

<PAGE>

                                   EXHIBIT "A"

                              PROPERTY DESCRIPTION

<PAGE>

                                    EXHIBIT B
                                       TO
           DEED OF TRUST, SECURITY AGREEMENT, AND FINANCING STATEMENT

                             PERMITTED ENCUMBRANCES

1.   Electric Utility Easement from Texxstar Resources (USA), Inc. to Pedernales
     Electric Cooperative,  Inc., recorded in Volume 953, Page 386, Hayes County
     Official Public Records.

2.   Subject to the rights of others,  if any, and in to the grave sites and the
     "Allen  Cemetery":  located on said property,  as shown on surveyor's  plat
     prepared by Bury and Pittman surveyors.

3.   Easement Agreement dated July 21, 1992, from Texxstar Resources (USA), Inc.
     and The City of Buda,  for public  utilities,  recorded in Volume 939, Page
     640, Hayes County Official Public Records.

4.   Wire fence protruding over portion of most northerly east line, as shown on
     surveyor's plat dated May 1, 1998 by Bury Pittman, Inc.

5.   Overhead  Electric  lines  crossing said tract as shown on surveyor's  plat
     dated May 1, 1998 by Bury Pittman, Inc.

6.   That certain Deed of Trust,  Security Agreement and Assignment of Rents and
     Leases dated May 15, 1998,  executed by Hamlin Food Products  Group,  Inc.,
     recorded in Volume 1414,  page 690, Hays County Official Public Records and
     that certain Financing  Statement dated May 21, 1998,  recorded in Document
     No.  9810148,  Volume 1414,  page 710, Hays County  Official Public Records
     ("KBK  Lien"),  provided  however that such liens shall at all times remain
     junior and  subordinate  to this Deed of Trust on such terms and conditions
     as required by Wells Fargo Business Credit, Inc.

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