Document:

[BANK ONE LOGO]

                                 PROMISSORY NOTE

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

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

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Principal Amount: $500,000.00                      Date of Note: August 13, 1999

PROMISE TO PAY. FOR VALUE RECEIVED,  WORLD WIDE STONE  CORPORATION  ("BORROWER")
PROMISES TO PAY TO BANK ONE, ARIZONA,  NA ("LENDER"),  OR ORDER, IN LAWFUL MONEY
OF THE UNITED STATES OF AMERICA, THE PRINCIPAL AMOUNT OF FIVE HUNDRED THOUSAND &
00/100  DOLLARS  ($500,000.00) ("TOTAL  PRINCIPAL  AMOUNT") OR SO MUCH AS MAY BE
OUTSTANDING,  TOGETHER WITH INTEREST ON THE UNPAID OUTSTANDING PRINCIPAL BALANCE
FROM THE DATE ADVANCED UNTIL PAID IN FULL.

PAYMENT.  THIS NOTE  SHALL BE  PAYABLE  AS  FOLLOWS:  INTEREST  SHALL BE DUE AND
PAYABLE  MONTHLY AS IT ACCRUES,  COMMENCING ON SEPTEMBER 13, 1999 AND CONTINUING
ON THE SAME DAY OF EACH MONTH  THEREAFTER  DURING THE TERM OF THIS NOTE, AND THE
OUTSTANDING PRINCIPAL BALANCE OF THIS NOTE, TOGETHER WITH ALL ACCRUED BUT UNPAID
INTEREST,  SHALL BE DUE AND PAYABLE ON AUGUST 13, 2000. The annual interest rate
for this Note is computed on a 365/360 basis;  that is, by applying the ratio of
the annual interest rate over a year of 360 days,  multiplied by the outstanding
principal balance, multiplied by the actual number of days the principal balance
is  outstanding.  Borrower  will pay Lender at the address  designated by Lender
from time to time in writing. If any payment of principal of or interest on this
Note shall become due on a day which is not a Business  Day,  such payment shall
be made on the next succeeding  Business Day. As used herein, the term "BUSINESS
DAY" shall mean any day other than a Saturday,  Sunday or any other day on which
national  banking  associations  are authorized to be closed.  Unless  otherwise
agreed to, in writing, or otherwise required by applicable law, payments will be
applied first to accrued, unpaid interest, then to principal,  and any remaining
amount to any unpaid collection costs, late charges and other charges, provided,
however,  upon delinquency or other default,  Lender reserves the right to apply
payments among  principal,  interest,  late charges,  collection costs and other
charges at its discretion.  The books and records of Lender shall be prima facie
evidence of all outstanding principal of and accrued but unpaid interest on this
Note.  If this Note is  governed by or is  executed  in  connection  with a loan
agreement, this Note is subject to the terms and provisions thereof.

VARIABLE INTEREST RATE. THE INTEREST RATE ON THIS NOTE IS SUBJECT TO FLUCTUATION
BASED UPON THE PRIME RATE OF INTEREST IN EFFECT FROM TIME TO TIME (THE  "INDEX")
(WHICH RATE MAY NOT BE THE LOWEST, BEST OR MOST FAVORABLE RATE OF INTEREST WHICH
LENDER MAY CHARGE ON LOANS TO ITS  CUSTOMERS). "PRIME  RATE" SHALL MEAN THE RATE
ANNOUNCED FROM TIME TO TIME BY LENDER AS ITS PRIME RATE. EACH CHANGE IN THE RATE
TO BE CHARGED ON THIS NOTE WILL BECOME EFFECTIVE  WITHOUT NOTICE ON THE SAME DAY
AS THE INDEX CHANGES.  EXCEPT AS OTHERWISE PROVIDED HEREIN, THE UNPAID PRINCIPAL
BALANCE OF THIS NOTE WILL  ACCRUE  INTEREST  AT A RATE PER ANNUM WHICH WILL FROM
TIME TO TIME BE EQUAL TO THE SUM OF THE INDEX,  PLUS  1.500%.  NOTICE:  UNDER NO
CIRCUMSTANCES  WILL THE INTEREST RATE ON THIS NOTE BE MORE THAN THE MAXIMUM RATE
ALLOWED BY APPLICABLE LAW.

PREPAYMENT.  Borrower  may pay  without  fee all or a portion  of the  principal
amount owed hereunder  earlier than it is due. All prepayments  shall be applied
to the indebtedness  owing hereunder in such order and manner as Lender may from
time to time determine in its sole discretion.

LATE  CHARGE.  If a payment  is 10 DAYS OR MORE LATE,  Borrower  will be charged
5.000% OF THE REGULARLY SCHEDULED PAYMENT OR $25.00, WHICHEVER IS GREATER.

DEFAULT.  Borrower  will be in  default  if any of the  following  happens:  (a)
Borrower  fails to make any payment of principal or interest when due under this
Note or any other indebtedness owing now or hereafter by Borrower to Lender; (b)
failure of  Borrower  or any other  party to comply  with or  perform  any term,
obligation,  covenant  or  condition  contained  in this  Note  or in any  other
promissory note, credit agreement, loan agreement, guaranty, security agreement,
mortgage, deed of trust or any other instrument,  agreement or document, whether
now or hereafter  existing,  executed in connection with this Note (the Note and
all such other  instruments,  agreements,  and documents  shall be  collectively
known herein as the "RELATED  DOCUMENTS");  (c) Any  representation or statement
made or  furnished  to Lender  herein,  in any of the  Related  Documents  or in
connection  with any of the  foregoing  is false or  misleading  in any material
respect;  (d)  Borrower or any other party  liable for the payment of this Note,
whether as maker, endorser, guarantor, surety or otherwise, becomes insolvent or
bankrupt,  has a receiver  or trustee  appointed  for any part of its  property,
makes an  assignment  for the benefit of its  creditors,  or any  proceeding  is
commenced  either  by any such  party or  against  it under  any  bankruptcy  or
insolvency laws; (e) the occurrence of any event of default  specified in any of
the other Related  Documents or in any other agreement now or hereafter  arising
between  Borrower and Lender;  (f) the occurrence of any event which permits the
acceleration  of the  maturity of any  indebtedness  owing now or  hereafter  by
Borrower to any third party; or (g) the liquidation,  termination,  dissolution,
death or legal  incapacity of Borrower or any other party liable for the payment
of this Note, whether as maker, endorser, guarantor, surety, or otherwise.

LENDER'S RIGHTS. Upon default,  Lender may at its option, without further notice
or demand (i)  declare the entire  unpaid  principal  balance on this Note,  all
accrued  unpaid  interest and all other costs and expenses for which Borrower is
responsible for under this Note and any other Related Document  immediately due,
(ii) refuse to advance any additional  amounts under this Note,  (iii) foreclose
all liens securing  payment hereof,  (iv) pursue any other rights,  remedies and
recourses  available  to the  Lender,  including  without  limitation,  any such
rights,  remedies or recourses under the Related Documents, at law or in equity,
or (v) pursue any combination of the foregoing. Upon default,  including failure
to pay upon final maturity,  Lender, at its option, may also, if permitted under
applicable  law, do one or both of the  following:  (a)  increase  the  variable
interest rate on this Note to 4.500  percentage  points over the Index,  and (b)
add any unpaid  accrued  interest to principal  and such sum will bear  interest
therefrom  until paid at the rate provided in this Note (including any increased
rate).  The  interest  rate  will not  exceed  the  maximum  rate  permitted  by
applicable  law.  Lender  may hire an  attorney  to help  collect  this  Note if
Borrower does not pay and Borrower will pay Lender's reasonable  attorneys' fees
and all other costs of  collection,  unless  prohibited by applicable  law. This
Note has been  delivered  to  Lender  and  accepted  by  Lender  in the State of
Arizona.  Subject to the provisions on arbitration,  this Note shall be governed
by and  construed in  accordance  with the laws of the State of Arizona  without
regard to any conflict of laws or provisions thereof.

PURPOSE.  Borrower  agrees  that no  advances  under this Note shall be used for
personal, family, or household purposes and that all advances hereunder shall be
used solely for business, commercial, agricultural or other similar purposes.

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

DISHONORED  ITEM FEE.  Borrower  will pay a fee to Lender of $25.00 if  Borrower
makes a payment on Borrower's  loan and the check or  preauthorized  charge with
which Borrower pays is later dishonored.

RIGHT OF SETOFF.  Unless a lien  would be  prohibited  by law or would  render a
nontaxable  account  taxable,  Borrower grants to Lender a contractual  security
interest in, and hereby assigns,  conveys,  delivers,  pledges, and transfers to
Lender all Borrower's right,  title and interest in and to, Borrower's  accounts
with Lender (whether checking, savings, or any other account), including without
limitation all accounts held jointly with someone else and all accounts Borrower
may open in the future,  Borrower  authorizes Lender, to the extent permitted by
applicable  law, to charge or setoff all sums owing on this Note against any and
all such accounts.

LINE OF CREDIT.  This Note  evidences a revolving  line of credit.  Borrower may
request advances and make payments hereunder from time to time, provided that it
is understood and agreed that the aggregate  principal  amount  outstanding from
time to time hereunder shall not at any time exceed the Total Principal  Amount.
The unpaid principal  balance of this Note shall increase and decrease with each
new  advance  or  payment  hereunder,  as the case may be.  Subject to the terms
hereof,  Borrower may borrow, repay and reborrow hereunder.  Advances under this
Note,  as well as  directions  for  payment  from  Borrower's  accounts,  may be
requested  orally or in writing by Borrower or by an authorized  person.  Lender
may,  but need not,  require  that all oral  requests be  confirmed  in writing.
Borrower  agrees to be liable for all sums either:  (a)  advanced in  accordance
with  the  instructions  of an  authorized  person  or  (b)  credited  to any of
Borrower's accounts with Lender.

ARBITRATION.  Lender and Borrower  agree that upon the written  demand of either
party,  whether made before or after the  institution of any legal  proceedings,
but prior to the  rendering of any judgment in that  proceeding,  all  disputes,
claims and controversies  between them, whether  individual,  joint, or class in
nature,  arising from this Note,  any Related  Document or otherwise,  including
without  limitation  contract  disputes  and tort  claims,  shall be resolved by
binding arbitration pursuant to the Commercial Rules of the American Arbitration
Association   ("AAA").   Any  arbitration   proceeding  held  pursuant  to  this
arbitration  provision  shall be conducted  in the city  nearest the  Borrower's
address having an AAA regional office,  or at any other place selected by mutual
agreement  of the  parties.  No act to take or dispose of any  collateral  shall
constitute  a waiver of this  arbitration  agreement  or be  prohibited  by this
arbitration  agreement.  This arbitration provision shall not limit the right of
either party during any dispute,  claim or controversy to seek,  use, and employ
ancillary, or preliminary rights and/or remedies, judicial or otherwise, for the
purposes  of  realizing  upon,  preserving,   protecting,  foreclosing  upon  or
proceeding under forcible entry and detainer for possession of, any
<PAGE>
08-13-1999                      PROMISSORY NOTE                           PAGE 2
LOAN NO.                          (CONTINUED)

real or personal  property,  and any such action shall not be deemed an election
of remedies.  Such remedies include,  without limitation,  obtaining  injunctive
relief or a temporary restraining order, invoking a power of sale under any deed
of  trust  or  mortgage,  obtaining  a writ of  attachment  or  imposition  of a
receivership,  or exercising any rights relating to personal property, including
exercising the right of set-off, or taking or disposing of such property with or
without judicial process pursuant to the Uniform  Commercial Code. Any disputes,
claims, or controversies  concerning the lawfulness or reasonableness of an act,
or exercise of any right or remedy,  concerning  any  collateral,  including any
claim to rescind,  reform,  or otherwise  modify any  agreement  relating to the
collateral, shall also be arbitrated; provided, however that no arbitrator shall
have the  right or the  power to enjoin  or  restrain  any act of either  party.
Judgment upon any award  rendered by any  arbitrator may be entered in any court
having jurisdiction.  The statute of limitations,  estoppel,  waiver, laches and
similar  doctrines which would otherwise be applicable in an action brought by a
party shall be applicable in any arbitration proceeding, and the commencement of
an arbitration  proceeding  shall be deemed the  commencement  of any action for
these purposes.  The Federal Arbitration Act (Title 9 of the United States Code)
shall  apply  to the  construction,  interpretation,  and  enforcement  of  this
arbitration provision.

ADDITIONAL  PROVISION REGARDING LATE CHARGES. In the "Late Charge" provision set
forth above,  the following  language is hereby added after the word  "greater":
"up to the  maximum  amount of Two  Hundred  Fifty  Dollars  ($250.00)  per late
charge".

GENERAL  PROVISIONS.  Lender may delay or forgo  enforcing  any of its rights or
remedies under this Note without losing them.  Borrower and any other person who
signs,  guarantees or endorses this Note,  to the extent  allowed by law,  waive
presentment, demand for payment, protest and notice of dishonor. Upon any change
in the terms of this Note, and unless otherwise  expressly stated in writing, no
party who signs this Note, whether as maker,  guarantor,  accommodation maker or
endorser,  shall be released from liability.  All such parties agree that Lender
may renew or  extend  (repeatedly  and for any  length of time)  this  Note,  or
release any party or guarantor or collateral; or impair, fail to realize upon or
perfect Lender's security interest in the collateral;  and take any other action
deemed necessary by Lender without the consent of or notice to anyone.  All such
parties  also agree that Lender may modify  this Note  without the consent of or
notice to anyone other than the party with whom the modification is made.

EFFECTIVE  RATE.  Borrower  agrees to an effective  rate of interest that is the
rate  specified in this Note plus any  additional  rate resulting from any other
charges in the nature of  interest  paid or to be paid in  connection  with this
Note.

PRIOR TO SIGNING THIS NOTE,  BORROWER READ AND  UNDERSTOOD ALL THE PROVISIONS OF
THIS NOTE,  INCLUDING THE VARIABLE INTEREST RATE PROVISIONS.  BORROWER AGREES TO
THE TERMS OF THE NOTE AND ACKNOWLEDGES RECEIPT OF A COMPLETED COPY OF THE NOTE.

BORROWER:

WORLD WIDE STONE CORPORATION

COPY
By: /s/ Spencer Cunningham
   -----------------------------------
   SPENCER CUNNINGHAM, Vice President

================================================================================[BANK ONE LOGO]

                          COMMERCIAL SECURITY AGREEMENT

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

THIS  COMMERCIAL  SECURITY  AGREEMENT  IS  ENTERED  INTO  BY  WORLD  WIDE  STONE
CORPORATION  (REFERRED  TO BELOW AS  "GRANTOR")  FOR THE  BENEFIT  OF BANK  ONE,
ARIZONA, NA (REFERRED TO BELOW AS "LENDER"). FOR VALUABLE CONSIDERATION, GRANTOR
GRANTS  TO  LENDER  A  SECURITY   INTEREST  IN  THE  COLLATERAL  TO  SECURE  THE
INDEBTEDNESS  AND  AGREES  THAT  LENDER  SHALL  HAVE THE  RIGHTS  STATED IN THIS
AGREEMENT WITH RESPECT TO THE COLLATERAL,  IN ADDITION TO ALL OTHER RIGHTS WHICH
LENDER MAY HAVE BY LAW.

DEFINITIONS.  The following words shall have the following meanings when used in
this  Agreement.  Terms not otherwise  defined in this Agreement  shall have the
meanings  attributed to such terms in the Uniform  Commercial Code as adopted in
the State of Arizona  ("Code").  All  references  to dollar  amounts  shall mean
amounts in lawful money of the United States of America.

     AGREEMENT.  The word "Agreement" means this Commercial  Security Agreement,
     as this Commercial  Security Agreement may be amended or modified from time
     to  time,  together  with  all  exhibits  and  schedules  attached  to this
     Commercial Security Agreement from time to time.

     COLLATERAL. The word "Collateral" means the following described property of
     Grantor,  whether now owned or hereafter acquired,  whether now existing or
     hereafter arising, and wherever located:

     ALL INVENTORY, CHATTEL PAPER, ACCOUNTS AND GENERAL INTANGIBLES

     In addition, the word "Collateral" includes all the following,  whether now
     owned or hereafter acquired, whether now existing or hereafter arising, and
     wherever located:

          (a) All attachments,  accessions, accessories, tools, parts, supplies,
          increases,  and additions to and all replacements of and substitutions
          for any property described above.

          (b) All products and produce of any of the property  described in this
          Collateral section.

          (c) All proceeds (including,  without limitation,  insurance proceeds)
          from the sale, lease,  destruction,  loss, or other disposition of any
          of the property described in this Collateral section.

          (d) All records and data relating to any of the property  described in
          this Collateral section, whether in the form of a writing, photograph,
          microfilm,  microfiche,  or  electronic  media,  together  with all of
          Grantor's right,  title, and interest in and to all computer  software
          required to utilize, create, maintain, and process any such records or
          data on electronic media.

     EVENT OF DEFAULT.  The words "Event of Default" mean and include any of the
     Events  of  Default  set  forth  below in the  section  titled  "Events  of
     Default."

     GRANTOR.  The word  "Grantor"  means  WORLD  WIDE  STONE  CORPORATION,  its
     successors and assigns (which is a debtor under the Code).

     GUARANTOR. The word "Guarantor" means and includes without limitation, each
     and  all  of  the  guarantors,   sureties,  and  accommodation  parties  in
     connection with the Indebtedness.

     INDEBTEDNESS.  The word "Indebtedness" means the indebtedness  evidenced by
     the Note,  including all principal and accrued interest  thereon,  together
     with all  other  liabilities,  costs and  expenses  for  which  Grantor  is
     responsible under this Agreement or under any of the Related Documents.  In
     addition, the word "Indebtedness" includes all other obligations, debts and
     liabilities,  plus any accrued interest thereon,  owing by Grantor,  or any
     one or more of them,  to Lender of any kind or  character,  now existing or
     hereafter  arising,  as well as all  present  and  future  claims by Lender
     against Grantor, or any one or more of them, and all renewals,  extensions,
     modifications,  substitutions  and  rearrangements of any of the foregoing;
     whether such  Indebtedness  arises by note,  draft,  acceptance,  guaranty,
     endorsement,  letter of credit, assignment,  overdraft, indemnity agreement
     or otherwise; whether such Indebtedness is voluntary or involuntary, due or
     not  due,  direct  or  indirect,  absolute  or  contingent,  liquidated  or
     unliquidated;  whether  Grantor may be liable  individually or jointly with
     others;  whether  Grantor  may be liable  primarily  or  secondarily  or as
     debtor, maker, comaker, drawer, endorser,  guarantor, surety, accommodation
     party or otherwise.

     LENDER.  The word "Lender" means BANK ONE, ARIZONA,  NA, its successors and
     assigns (which is a secured party under the Code).

     NOTE. The word "Note" means the  promissory  note dated August 13, 1999, in
     the principal  amount of $500,000.00  from WORLD WIDE STONE  CORPORATION to
     Lender,  together with all renewals of,  extensions of,  modifications  of,
     refinancings of,  consolidations  of and  substitutions for such promissory
     note.

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

OBLIGATIONS OF GRANTOR. Grantor represents,  warrants and covenants to Lender as
follows:

     PERFECTION OF SECURITY  INTEREST.  Grantor agrees to execute such financing
     statements  and to take  whatever  other actions are requested by Lender to
     perfect and continue  Lender's  security  interest in the Collateral.  Upon
     request  of  Lender,  Grantor  will  deliver  to Lender  any and all of the
     documents evidencing or constituting the Collateral,  and Grantor will note
     Lender's interest upon any and all chattel paper if not delivered to Lender
     for possession by Lender. Grantor hereby irrevocably appoints Lender as its
     attorney-in-fact  for the purpose of executing any  documents  necessary to
     perfect or to continue the  security  interest  granted in this  Agreement.
     Lender may at any time,  and without  further  authorization  from Grantor,
     file  a  carbon,  photographic  or  other  reproduction  of  any  financing
     statement or of this  Agreement for use as a financing  statement.  Grantor
     will  reimburse  Lender  for  all  expenses  for  the  perfection  and  the
     continuation  of  the  perfection  of  Lender's  security  interest  in the
     Collateral.  Grantor has  disclosed  to Lender all  tradenames  and assumed
     names  currently used by Grantor,  all tradenames and assumed names used by
     Grantor  within the  previous  six (6) years and all of  Grantor's  current
     business  locations.  Grantor will notify Lender in writing at least thirty
     (30) days prior to the occurrence of any of the following:  (i) any changes
     in Grantor's name,  tradename(s) or assumed name(s),  or (ii) any change in
     Grantor's business location(s) or the location of any of the Collateral.

     NO VIOLATION. The execution and delivery of this Agreement will not violate
     any law or agreement, governing Grantor or to which Grantor is a party, and
     its certificate or articles of incorporation and bylaws do not prohibit any
     term or condition of this Agreement.

     ENFORCEABILITY  OF  COLLATERAL.  To the extent the  Collateral  consists of
     accounts, chattel paper, or general
<PAGE>
08-13-1999                 COMMERCIAL SECURITY AGREEMENT                  PAGE 2
LOAN NO.                           (CONTINUED)

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

     intangibles, the Collateral is enforceable in accordance with its terms, is
     genuine,  and complies with applicable laws  concerning  form,  content and
     manner of  preparation  and  execution,  and all  persons  appearing  to be
     obligated on the Collateral have authority and capacity to contract and are
     in fact obligated as they appear to be on the  Collateral.  At the time any
     account  becomes  subject to a security  interest  in favor of Lender,  the
     account shall be a good and valid account representing an undisputed,  bona
     fide  indebtedness  incurred by the account debtor,  for  merchandise  held
     subject to  delivery  instructions  or  theretofore  shipped  or  delivered
     pursuant to a contract of sale,  or for services  theretofore  performed by
     Grantor with or for the account  debtor;  Grantor will not adjust,  settle,
     compromise,  amend or modify any  account,  except in good faith and in the
     ordinary  course of  business;  provided,  however,  this  exception  shall
     automatically  terminate upon the occurrence of an Event of Default or upon
     Lender's written request.

     LOCATION OF THE COLLATERAL.  Grantor,  upon request of Lender, will deliver
     to Lender in form  satisfactory to Lender a schedule of real properties and
     Collateral  locations relating to Grantor's  operations,  including without
     limitation the following: (a) all real property owned or being purchased by
     Grantor;  (b) all real property being rented or leased by Grantor;  (c) all
     storage facilities owned, rented, leased, or being used by Grantor; and (d)
     all other properties  where Collateral is or may be located.  Except in the
     ordinary  course of its business,  Grantor shall not remove the  Collateral
     from its existing locations without the prior written consent of Lender.

     REMOVAL OF COLLATERAL.  Grantor shall keep the Collateral (or to the extent
     the  Collateral  consists of  intangible  property  such as  accounts,  the
     records  concerning the Collateral) at Grantor's address shown above, or at
     such other  locations as are  acceptable to Lender.  Except in the ordinary
     course of its business, including the sales of inventory, Grantor shall not
     remove the Collateral from its existing locations without the prior written
     consent of Lender. To the extent that the Collateral  consists of vehicles,
     or other titled property, Grantor shall not take or permit any action which
     would  require  application  for  certificates  of title  for the  vehicles
     outside the State of Arizona, without the prior written consent of Lender.

     TRANSACTIONS  INVOLVING  COLLATERAL.  Except for inventory sold or accounts
     collected in the ordinary course of Grantor's  business,  Grantor shall not
     sell,  offer to sell, or otherwise  transfer or dispose of the  Collateral.
     While  Grantor is not in default  under this  Agreement,  Grantor  may sell
     inventory,  but only in the  ordinary  course of its  business  and only to
     buyers who qualify as a buyer in the ordinary course of business. A sale in
     the ordinary  course of Grantor's  business  does not include a transfer in
     partial or total satisfaction of a debt or any bulk sale. Grantor shall not
     pledge, mortgage, encumber or otherwise permit the Collateral to be subject
     to any lien,  security  interest,  encumbrance,  or charge,  other than the
     security interest provided for in this Agreement, without the prior written
     consent of Lender. This includes security interests even if junior in right
     to the security  interests  granted under this Agreement.  Unless waived by
     Lender,  all proceeds from any  disposition of the Collateral (for whatever
     reason) shall be held in trust for Lender and shall not be commingled  with
     any other funds;  provided  however,  this requirement shall not constitute
     consent by Lender to any sale or other disposition.  Upon receipt,  Grantor
     shall immediately deliver any such proceeds to Lender.

     TITLE.  Grantor  represents  and warrants to Lender that it is the owner of
     the Collateral and holds good and marketable title to the Collateral,  free
     and  clear  of all  liens  and  encumbrances  except  for the  lien of this
     Agreement. No financing statement covering any of the Collateral is on file
     in any public office other than those which  reflect the security  interest
     created by this  Agreement or to which Lender has  specifically  consented.
     Grantor shall defend Lender's  rights in the Collateral  against the claims
     and demands of all other persons.

     COLLATERAL  SCHEDULES AND LOCATIONS.  As often as Lender shall require, and
     insofar as the  Collateral  consists of accounts  and general  intangibles,
     Grantor shall  deliver to Lender  schedules of such  Collateral,  including
     such information as Lender may require,  including without limitation names
     and  addresses  of account  debtors  and  agings of  accounts  and  general
     intangibles.  Insofar as the Collateral consists of inventory Grantor shall
     deliver  to  Lender,  as  often  as  Lender  shall  require,   such  lists,
     descriptions,  and designations of such Collateral as Lender may require to
     identify the nature, extent, and location of such Collateral.

     MAINTENANCE  AND  INSPECTION  OF  COLLATERAL.  Grantor  shall  maintain all
     tangible  Collateral in good condition and repair.  Grantor will not commit
     or permit  damage to or  destruction  of the  Collateral or any part of the
     Collateral. Lender and its designated representatives and agents shall have
     the  right at all  reasonable  times to  examine,  inspect,  and  audit the
     Collateral wherever located. Grantor shall immediately notify Lender of all
     cases involving the return, rejection,  repossession,  loss or damage of or
     to any Collateral;  of any request for credit or adjustment or of any other
     dispute  arising  with  respect to the  Collateral;  and  generally  of all
     happenings  and events  affecting the Collateral or the value or the amount
     of the Collateral.

     TAXES,  ASSESSMENTS  AND  LIENS.  Grantor  will  pay  when  due all  taxes,
     assessments  and  governmental  charges or levies upon the  Collateral  and
     provide  Lender  evidence of such  payment  upon its  request.  Grantor may
     withhold any such payment or may elect to contest any lien if Grantor is in
     good faith  conducting an appropriate  proceeding to contest the obligation
     to  pay  and  so  long  as  Lender's  interest  in  the  Collateral  is not
     jeopardized  in Lender's sole opinion.  If the Collateral is subjected to a
     lien  which is not  discharged  within  fifteen  (15) days,  Grantor  shall
     deposit  with Lender  cash,  a  sufficient  corporate  surety bond or other
     security  satisfactory  to Lender in an amount  adequate to provide for the
     discharge of the lien plus any interest,  costs,  attorneys'  fees or other
     charges  that  could  accrue  as a  result  of  foreclosure  or sale of the
     Collateral. In any contest Grantor shall defend itself and Lender and shall
     satisfy  any  final  adverse  judgment  before   enforcement   against  the
     Collateral.  Grantor shall name Lender as an  additional  obligee under any
     surety bond furnished in the contest proceedings.

     COMPLIANCE WITH GOVERNMENTAL  REQUIREMENTS.  Grantor is conducting and will
     continue to conduct  Grantor's  businesses in material  compliance with all
     federal, state and local laws, statutes,  ordinances,  rules,  regulations,
     orders,   determinations  and  court  decisions   applicable  to  Grantor's
     businesses and to the  production,  disposition  or use of the  Collateral,
     including without limitation,  those pertaining to health and environmental
     matters such as the Comprehensive Environmental Response, Compensation, and
     Liability  Act  of  1980,  as  amended  by  the  Superfund  Amendments  and
     Reauthorization  Act of 1986  (collectively,  together with any  subsequent
     amendments,  hereinafter  called "CERCLA"),  the Resource  Conservation and
     Recovery Act of 1976, as amended by the Used Oil Recycling Act of 1980, the
     Solid Waste Disposal Act  Amendments of 1980,  and the Hazardous  Substance
     Waste  Amendments  of 1984  (collectively,  together  with  any  subsequent
     amendments,  hereinafter  called "RCRA").  Grantor  represents and warrants
     that (i) none of the  operations  of Grantor  is the  subject of a federal,
     state or local  investigation  evaluating  whether  any  material  remedial
     action is needed  to  respond  to a  release  or  disposal  of any toxic or
     hazardous  substance or solid waste into the environment;  (ii) Grantor has
     not filed any notice under any federal,  state or local law indicating that
     Grantor is responsible for the release into the  environment,  the disposal
     on any  premises  in which  Grantor is  conducting  its  businesses  or the
     improper  storage,  of any  material  amount  of  any  toxic  or  hazardous
     substance or solid waste or that any such toxic or  hazardous  substance or
     solid waste has been released,  disposed of or is improperly  stored,  upon
     any  premises on which  Grantor is  conducting  its  businesses;  and (iii)
     Grantor otherwise does not have any known material contingent  liability in
     connection with the release into the environment,  disposal or the improper
     storage, of any such toxic or hazardous substance or solid waste. The terms
     "hazardous  substance"  and  "release",  as used  herein,  shall  have  the
     meanings  specified in CERCLA,  and the terms "solid waste" and "disposal",
     as used  herein,  shall  have the  meanings  specified  in RCRA;  provided,
     however, that to the extent that the laws of the State of Arizona establish
     meanings  for such terms which are broader  than that  specified  in either
     CERCLA or RCRA, such broader meanings shall apply. The  representations and
     warranties  contained  herein  are  based on  Grantor's  due  diligence  in
     investigating  the Collateral for hazardous wastes and substances.  Grantor
     hereby  (a)  releases  and  waives any  future  claims  against  Lender for
     indemnity or contribution in the event Grantor
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08-13-1999                 COMMERCIAL SECURITY AGREEMENT                  PAGE 3
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     becomes  liable for  cleanup or other  costs  under any such laws,  and (b)
     agrees to indemnify and hold harmless Lender against any and all claims and
     losses  resulting from a breach of this provision of this  Agreement.  This
     obligation to indemnify shall survive the payment of the  Indebtedness  and
     the termination of this Agreement.

     MAINTENANCE OF CASUALTY  INSURANCE.  Grantor shall procure and maintain all
     risk insurance,  including  without  limitation  fire,  theft and liability
     coverage  together  with such other  insurance  as Lender may require  with
     respect to the Collateral, in form, amounts, coverages and basis reasonably
     acceptable  to  Lender  and  issued by a company  or  companies  reasonably
     acceptable  to Lender.  Grantor,  upon  request of Lender,  will deliver to
     Lender from time to time the policies or  certificates of insurance in form
     satisfactory to Lender,  including  stipulations that coverages will not be
     cancelled or  diminished  without at least thirty (30) days' prior  written
     notice  to  Lender  and  not  including  any  disclaimer  of the  insurer's
     liability  for failure to give such a notice.  Each  insurance  policy also
     shall  include an  endorsement  providing  that coverage in favor of Lender
     will not be impaired in any way by any act,  omission or default of Grantor
     or any other person.  In connection  with all policies  covering  assets in
     which Lender holds or is offered a security interest,  Grantor will provide
     Lender with such loss payable or other  endorsements as Lender may require.
     If  Grantor  at any time  fails to  obtain or  maintain  any  insurance  as
     required under this  Agreement,  Lender may (but shall not be obligated to)
     obtain such  insurance  as Lender  deems  appropriate,  including  if it so
     chooses  "single  interest  insurance,"  which  will  cover  only  Lender's
     interest in the Collateral.

     APPLICATION OF INSURANCE PROCEEDS.  Grantor shall promptly notify Lender of
     any loss or  damage to the  Collateral.  Lender  may make  proof of loss if
     Grantor  fails to do so  within  fifteen  (15)  days of the  casualty.  All
     proceeds of any insurance on the  Collateral,  including  accrued  proceeds
     thereon,  shall be held by  Lender  as part of the  Collateral.  If  Lender
     consents to repair or replacement  of the damaged or destroyed  Collateral,
     Lender shall,  upon  satisfactory  proof of  expenditure,  pay or reimburse
     Grantor from the proceeds for the reasonable cost of repair or restoration.
     If Lender  does not  consent to repair or  replacement  of the  Collateral,
     Lender shall  retain a sufficient  amount of the proceeds to pay all of the
     Indebtedness, and shall pay the balance to Grantor. Any proceeds which have
     not been  disbursed  within six (6) months  after  their  receipt and which
     Grantor has not committed to the repair or  restoration  of the  Collateral
     shall be used to prepay the Indebtedness. Application of insurance proceeds
     to the payment of the Indebtedness  will not extend,  postpone or waive any
     payments  otherwise  due, or change the amount of such  payments to be made
     and  proceeds  may be applied in such order and such  amounts as Lender may
     elect.

     SOLVENCY OF GRANTOR. As of the date hereof, and after giving effect to this
     Agreement and the  completion  of all other  transactions  contemplated  by
     Grantor at the time of the execution of this Agreement,  (i) Grantor is and
     will be solvent,  (ii) the fair salable value of Grantor's  assets  exceeds
     and  will  continue  to  exceed  Grantor's   liabilities  (both  fixed  and
     continent), (iii) Grantor is paying and will continue to be able to pay its
     debts as they mature, and (iv) if Grantor is not an individual, Grantor has
     and will have sufficient  capital to carry on Grantor's  businesses and all
     businesses in which Grantor is about to engage.

     LIEN NOT RELEASED. The lien, security interest and other security rights of
     Lender  hereunder  shall not be impaired by any  indulgence,  moratorium or
     release granted by Lender, including but not limited to, the following: (a)
     any  renewal,   extension,   increase  or   modification   of  any  of  the
     Indebtedness; (b) any surrender,  compromise,  release, renewal, extension,
     exchange or substitution  granted in respect of any of the Collateral;  (c)
     any release or indulgence  granted to any endorser,  guarantor or surety of
     any of the Indebtedness; (d) any release of any other collateral for any of
     the Indebtedness;  (e) any acquisition of any additional collateral for any
     of the  Indebtedness;  and (f) any waiver or failure to exercise any right,
     power or remedy granted herein, by law or in any of the Related Documents.

     REQUEST FOR ENVIRONMENTAL  INSPECTIONS.  Upon Lender's  reasonable  request
     from time to time,  Grantor will obtain at Grantor's  expense an inspection
     or audit  report(s)  addressed  to Lender of Grantor's  operations  from an
     engineering or consulting firm approved by Lender,  indicating the presence
     or absence of toxic and hazardous substances, underground storage tanks and
     solid waste on any  premises  in which  Grantor is  conducting  a business;
     provided,  however,  Grantor  will be  obligated to pay for the cost of any
     such  inspection  or audit no more than one time  in any  twelve (12) month
     period  unless  Lender  has  reason  to  believe  that  toxic or  hazardous
     substance  or  solid  wastes  have  been  dumped  or  released  on any such
     premises. If Grantor fails to order or obtain an inspection or audit within
     ten (10) days after Lender's  request,  Lender may at its option order such
     inspection  or  audit,  and  Grantor  grants  to  Lender  and  its  agents,
     employees,  contractors and consultants  access to the premises in which it
     is conducting its business and a license (which is coupled with an interest
     and is  irrevocable) to obtain  inspections  and audits.  Grantor agrees to
     promptly  provide Lender with a copy of the results of any such  inspection
     or audit received by Grantor.  The cost of such  inspections  and audits by
     Lender shall be a part of the  Indebtedness,  secured by the Collateral and
     payable by Grantor on demand.

     CHATTEL  PAPER.  To the extent a security  interest in the chattel paper of
     Grantor is granted hereunder, Grantor represents and warrants that all such
     chattel paper have only one original  counterpart  and no other party other
     than Grantor or Lender is in actual or constructive  possession of any such
     chattel  paper.  Grantor agrees that at the option of and on the request by
     Lender,  Grantor will either deliver to Lender all originals of the chattel
     paper  which is included in the  Collateral  or will mark all such  chattel
     paper with a legend  indicating  that such chattel  paper is subject to the
     security interest granted hereunder.

     LANDLORD'S WAIVERS. Grantor agrees that upon the request of Lender, Grantor
     shall cause each landlord of real  property  leased by Grantor at which any
     of the  Collateral  is  located  from time to time to execute  and  deliver
     agreements  satisfactory  in form and  substance  to Lender  by which  such
     landlord waives or subordinates any rights it may have in the Collateral.

GRANTOR'S RIGHT TO POSSESSION AND TO COLLECT ACCOUNTS.  Until default and except
as  otherwise  provided  below  with  respect  to  accounts,  Grantor  may  have
possession  of the  tangible  personal  property and  beneficial  use of all the
Collateral  and may use it in any  lawful  manner  not  inconsistent  with  this
Agreement or the Related Documents,  provided that Grantor's right to possession
and  beneficial use shall not apply to any  Collateral  where  possession of the
Collateral by Lender is required by law to perfect Lender's security interest in
such Collateral.  Until otherwise notified by Lender, Grantor may collect any of
the Collateral  consisting of accounts.  At any time and even though no Event of
Default exists, Lender may collect the accounts,  notify account debtors to make
payments  directly to Lender for application to the  Indebtedness  and to verify
the  accounts  with such  account  debtors.  Lender  also has the right,  at the
expense of Grantor,  to enforce collection of such accounts and adjust,  settle,
compromise,  sue for or foreclose on the amount owing under any such account, in
the same  manner and to the same  extent as  Grantor.  If Lender at any time has
possession  of any  Collateral,  whether  before  or after an Event of  Default,
Lender  shall be deemed to have  exercised  reasonable  care in the  custody and
preservation  of the  Collateral if Lender takes such action for that purpose as
Grantor shall  request or as Lender,  in Lender's  sole  discretion,  shall deem
appropriate under the circumstances, but failure to honor any request by Grantor
shall not of itself be deemed  to be a  failure  to  exercise  reasonable  care.
Lender shall not be required to take any steps  necessary to preserve any rights
in the Collateral  against prior parties,  nor to protect,  preserve or maintain
any security interest given to secure the Indebtedness.

EXPENDITURES  BY LENDER.  If not  discharged  or paid when due,  Lender may (but
shall  not  be  obligated  to)  discharge  or pay  any  amounts  required  to be
discharged or paid by Grantor under this Agreement, including without limitation
all taxes,  liens,  security interests,  encumbrances,  and other claims, at any
time  levied or  placed on the  Collateral.  Lender  also may (but  shall not be
obligated  to) pay all  costs  for  insuring,  maintaining  and  preserving  the
Collateral.  All such expenditures  incurred or paid by Lender for such purposes
will  then  bear  interest  at the rate  charged  under  the Note  from the date
incurred  or paid by  Lender  to the  date of  repayment  by  Grantor.  All such
expenses  shall  become a part of the  Indebtedness  and be payable on demand by
Lender.
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08-13-1999                 COMMERCIAL SECURITY AGREEMENT                  PAGE 4
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Such right shall be in addition to all other rights and remedies to which Lender
may be entitled upon the occurrence of an Event of Default.

EVENTS OF DEFAULT.  Each of the following  shall  constitute an Event of Default
under this Agreement:

     DEFAULT ON INDEBTEDNESS. Failure of Grantor to make any payment when due on
     the Indebtedness.

     OTHER  DEFAULTS.  Failure of Grantor to comply with or to perform any other
     term,  obligation,  covenant or condition contained in this Agreement,  the
     Note,  any of the other  Related  Documents or in any other  agreement  now
     existing or hereafter arising between Lender and Grantor.

     FALSE  STATEMENTS.  Any  warranty,  representation  or  statement  made  or
     furnished  to Lender  under  this  Agreement,  the Note or any of the other
     Related Documents is false or misleading in any material respect.

     DEFAULT TO THIRD  PARTY.  The  occurrence  of any event  which  permits the
     acceleration  of the maturity of any  indebtedness  owing by Grantor or any
     Guarantor to any third party under any agreement or undertaking.

     BANKRUPTCY  OR  INSOLVENCY.  If the Grantor or any  Guarantor:  (i) becomes
     insolvent,  or  makes a  transfer  in  fraud  of  creditors,  or  makes  an
     assignment for the benefit of creditors, or admits in writing its inability
     to pay its debts as they become due; (ii) generally is not paying its debts
     as such debts  become  due;  (iii) has a  receiver,  trustee  or  custodian
     appointed  for,  or take  possession  of, all or  substantially  all of the
     assets  of such  party or any of the  Collateral,  either  in a  proceeding
     brought by such party or in a  proceeding  brought  against  such party and
     such  appointment  is not  discharged or such  possession is not terminated
     within  sixty  (60) days  after the  effective  date  thereof or such party
     consents to or acquiesces in such  appointment or possession;  (iv) files a
     petition for relief under the United  States  Bankruptcy  Code or any other
     present or future federal or state  insolvency,  bankruptcy or similar laws
     (all  of  the  foregoing   hereinafter   collectively   called  "APPLICABLE
     BANKRUPTCY  LAW") or an  involuntary  petition for relief is filed  against
     such  party  under  any  Applicable  Bankruptcy  Law and  such  involuntary
     petition is not dismissed  within sixty (60) days after the filing thereof,
     or an order for relief  naming such party is entered  under any  Applicable
     Bankruptcy   Law,   or   any   composition,    rearrangement,    extension,
     reorganization  or other  relief of debtors  now or  hereafter  existing is
     requested  or  consented  to by such  party;  (v) fails to have  discharged
     within a period of sixty (60) days any attachment, sequestration or similar
     writ  levied upon any  property of such party;  or (vi) fails to pay within
     thirty (30) days any final money judgment against such party.

     LIQUIDATION,  DEATH AND RELATED  EVENTS.  If Grantor or any Guarantor is an
     entity, the liquidation,  dissolution,  merger or consolidation of any such
     entity  or, if any of such  parties  is an  individual,  the death or legal
     incapacity of any such individual.

     CREDITOR  OR  FORFEITURE   PROCEEDINGS.   Commencement  of  foreclosure  or
     forfeiture   proceedings,   whether  by  judicial  proceeding,   self-help,
     repossession  or any other  method,  by any  creditor  of Grantor or by any
     governmental agency against the Collateral or any other collateral securing
     the Indebtedness.

     VIOLATION OF LAW. Any of the Real Property and/or Improvements,  or any use
     of  any  of  the  Real  Property  and/or  Improvements  violates  any  law,
     ordinance, regulation or rule (Federal, state or local).

RIGHTS  AND  REMEDIES  ON  DEFAULT.  If an Event of  Default  occurs  under this
Agreement, at any time thereafter, Lender shall have all the rights of a secured
party under the Code.  In addition and without  limitation,  Lender may exercise
any one or more of the following rights and remedies:

     ACCELERATE  INDEBTEDNESS.  Lender  may  declare  the  entire  Indebtedness,
     including  any  prepayment  penalty which Grantor would be required to pay,
     immediately due and payable, without notice.

     ASSEMBLE COLLATERAL. Lender may require Grantor to deliver to Lender all or
     any portion of the  Collateral  and any and all  certificates  of title and
     other documents  relating to the Collateral.  Lender may require Grantor to
     assemble  the  Collateral  and make it available to Lender at a place to be
     designated  by Lender.  Lender also shall have full power to enter upon the
     property of Grantor to take possession of and remove the Collateral. If the
     Collateral  contains  other goods not covered by this Agreement at the time
     of repossession,  Grantor agrees Lender may take such other goods, provided
     that  Lender  makes  reasonable  efforts to return  them to  Grantor  after
     repossession.

     SELL THE COLLATERAL. Lender shall have full power to sell, lease, transfer,
     or otherwise  dispose of the Collateral or the proceeds  thereof in its own
     name or that of Grantor.  Lender may sell the  Collateral  (as a unit or in
     parcels) at public auction or private sale.  Lender may buy the Collateral,
     or any portion  thereof,  (i) at any public  sale,  and (ii) at any private
     sale if the Collateral is of a type customarily sold in a recognized market
     or is of a type which is the subject of widely  distributed  standard price
     quotations.  Lender shall not be  obligated to make any sale of  Collateral
     regardless  of a notice of sale having  been given.  Lender may adjourn any
     public or private  sale from time to time by  announcement  at the time and
     place fixed therefor, and such sale may, without further notice, be made at
     the time and place to which it was so adjourned.  Unless the  Collateral is
     perishable  or  threatens  to  decline  speedily  in  value or is of a type
     customarily  sold  on  a  recognized  market,   Lender  will  give  Grantor
     reasonable  notice of the time and place of any public  sale  thereof or of
     the time after which any private sale or any other intended  disposition of
     the Collateral is to be made. The  requirements of reasonable  notice shall
     be met if such notice is given at least ten (10) days prior to the date any
     public sale, or after which a private sale, of any of such Collateral is to
     be held.  All  expenses  relating  to the  disposition  of the  Collateral,
     including without limitation the expenses of retaking,  holding,  insuring,
     preparing for sale and selling the  Collateral,  shall become a part of the
     Indebtedness secured by this Agreement and shall be payable on demand, with
     interest at the Note rate from date of expenditure until repaid.

     APPOINT  RECEIVER.  To the extent permitted by applicable law, Lender shall
     have the  following  rights and remedies  regarding  the  appointment  of a
     receiver:  (a) Lender may have a receiver  appointed  as a matter of right,
     (b) the receiver may be an employee of Lender and may serve  without  bond,
     and (c) all fees of the receiver and his or her attorney  shall become part
     of the  Indebtedness  secured  by this  Agreement  and shall be  payable on
     demand,  with  interest  at the Note rate from  date of  expenditure  until
     repaid.

     COLLECT  REVENUES,  APPLY  ACCOUNTS.  Lender,  either  itself or  through a
     receiver,  may collect the payments,  rents,  income, and revenues from the
     Collateral. Lender may transfer any Collateral into its own name or that of
     its nominee and receive the payments, rents, income, and revenues therefrom
     and hold the same as security for the  Indebtedness  or apply it to payment
     of the  Indebtedness  in such order of preference as Lender may  determine.
     Insofar  as the  Collateral  consists  of  accounts,  general  intangibles,
     insurance  policies,  instruments,  chattel  paper,  choses in  action,  or
     similar  property,   Lender  may  demand,  collect,  receipt  for,  settle,
     compromise,  adjust,  sue for,  foreclose,  or realize on the Collateral as
     Lender may determine.  For these purposes,  Lender may, on behalf of and in
     the  name of  Grantor,  receive,  open and  dispose  of mail  addressed  to
     Grantor;  change any address to which mail and payments are to be sent; and
     endorse  notes,  checks,   drafts,   money  orders,   documents  of  title,
     instruments and items pertaining  to payment,  shipment,  or storage of any
     Collateral. To facilitate collection, Lender may notify account debtors and
     obligors on any Collateral to make payments directly to Lender.

     OBTAIN DEFICIENCY.  If Lender chooses to sell any or all of the Collateral,
     Lender may obtain a judgment  against Grantor for any deficiency  remaining
     on the Indebtedness due to Lender after application of all amounts received
     from the exercise of the rights provided in this  Agreement.  Grantor shall
     be  liable  for a  deficiency  even if the  transaction  described  in this
     subsection is a sale of accounts or chattel paper.

     OTHER RIGHTS AND REMEDIES. Lender shall have all the rights and remedies of
     a secured creditor under the provisions of the Code, as may be amended from
     time to time.  In  addition,  Lender shall have and may exercise any or all
     other  rights and  remedies it may have  available  at law,  in equity,  or
     otherwise.  Grantor waives any right to require  Lender to proceed  against
     any third party, exhaust any other security for the
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08-13-1999                 COMMERCIAL SECURITY AGREEMENT                  PAGE 5
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     Indebtedness or pursue any other right or remedy available to Lender.

     CUMULATIVE REMEDIES. All of Lender's rights and remedies, whether evidenced
     by this Agreement or the Related  Documents or by any other writing,  shall
     be cumulative and may be exercised singularly or concurrently.  Election by
     Lender to pursue any remedy shall not exclude  pursuit of any other remedy,
     and an  election  to make  expenditures  or to take  action to  perform  an
     obligation  of Grantor under this  Agreement,  after  Grantor's  failure to
     perform,  shall not  affect  Lender's  right to  declare  a default  and to
     exercise its remedies.

MISCELLANEOUS PROVISIONS.

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

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

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

     ATTORNEYS'  FEES;  EXPENSES.  Grantor  will upon  demand  pay to Lender the
     amount of any and all costs and  expenses  (including  without  limitation,
     reasonable  attorneys'  fees  and  expenses)  which  Lender  may  incur  in
     connection  with (i) the  perfection  and  preservation  of the  collateral
     assignment and security  interests  created under this Agreement,  (ii) the
     custody,  preservation,  use or  operation  of, or the sale of,  collection
     from, or other  realization  upon,  the  Collateral,  (iii) the exercise or
     enforcement  of any of the rights of Lender under this  Agreement,  or (iv)
     the failure by Grantor to perform or observe any of the provisions hereof.

     TERMINATION.  Upon (i) the satisfaction in full of the Indebtedness and all
     obligations hereunder, (ii) the termination or expiration of any commitment
     of Lender to extend credit that would become  Indebtedness  hereunder,  and
     (iii)  Lender's   receipt  of  a  written  request  from  Grantor  for  the
     termination  hereof,  this  Agreement  and the security  interests  created
     hereby shall  terminate.  Upon  termination of this Agreement and Grantor's
     written request, Lender will, at Grantor's sole cost and expense, return to
     Grantor  such of the  Collateral  as shall not have been sold or  otherwise
     disposed of or applied pursuant to the terms hereof and execute and deliver
     to Grantor such documents as Grantor shall  reasonably  request to evidence
     such termination.

     INDEMNITY.  Grantor  hereby agrees to  indemnify,  defend and hold harmless
     Lender, and its officers,  directors,  shareholders,  employees, agents and
     representatives (each an "INDEMNIFIED PERSON") from and against any and all
     liabilities,  obligations,  claims, losses,  damages,  penalties,  actions,
     judgments,  suits,  costs,  expenses or disbursements of any kind or nature
     (collectively,  the  "CLAIMS")  which may be  imposed  on,  incurred  by or
     asserted  against,  any  Indemnified  Person  (whether or not caused by any
     Indemnified Person's sole,  concurrent or contributory  negligence) arising
     in  connection  with  the  Related  Documents,   the  Indebtedness  or  the
     Collateral (including,  without limitation,  the enforcement of the Related
     Documents  and  the  defense  of any  Indemnified  Person's  action  and/or
     inactions in connection with the Related Documents),  except to the limited
     extent  that the Claims  against  the  Indemnified  Person are  proximately
     caused by such Indemnified Person's gross negligence or willful misconduct.
     The  indemnification  provided  for  in  this  Section  shall  survive  the
     termination of this Agreement and shall extend and continue to benefit each
     individual or entity who is or has at any time been an  Indemnified  Person
     hereunder.

     CAPTION  HEADINGS.  Caption  headings in this Agreement are for convenience
     purposes only and are not to be used to interpret or define the  provisions
     of this Agreement.

     NOTICES.  All notices  required to be given under this  Agreement  shall be
     given in writing,  and shall be effective  when actually  delivered or when
     deposited with a nationally  recognized  overnight  courier or deposited in
     the United  States mail,  first class,  postage  prepaid,  addressed to the
     party to whom the notice is to be given at the  address  shown  above.  Any
     party may change its  address for notices  under this  Agreement  by giving
     formal written notice to the other parties,  specifying that the purpose of
     the notice is to change the party's  address.  To the extent  permitted  by
     applicable  law, if there is more than one  Grantor,  notice to any Grantor
     will constitute notice to all Grantors.  For notice purposes,  Grantor will
     keep Lender informed at all times of Grantor's current address(es).

     POWER OF ATTORNEY.  Grantor hereby irrevocably  appoints Lender as its true
     and lawful  attorney-in-fact,  such power of attorney being coupled with an
     interest,  with full power of substitution to do the following in the place
     and stead of Grantor  and in the name of Grantor:  (a) to demand,  collect,
     receive,  receipt for, sue and recover all sums of money or other  property
     which  may  now  or  hereafter  become  due,  owing  or  payable  from  the
     Collateral;   (b)  to  execute,  sign  and  endorse  any  and  all  claims,
     instruments, receipts, checks, drafts or warrants issued in payment for the
     Collateral;  (c) to settle or compromise  any and all claims  arising under
     the  Collateral,  and,  in the place and stead of  Grantor,  to execute and
     deliver its release and settlement for the claim; and (d) to file any claim
     or  claims  or to  take  any  action  or  institute  or  take  part  in any
     proceedings,  either  in  its  own  name  or in the  name  of  Grantor,  or
     otherwise,  which in the  discretion  of Lender may seem to be necessary or
     advisable.  This power is given as security for the  Indebtedness,  and the
     authority  hereby conferred is and shall be irrevocable and shall remain in
     full force and effect until renounced by Lender.

     SEVERABILITY.  If a court of competent  jurisdiction finds any provision of
     this  Agreement  to be  invalid  or  unenforceable  as  to  any  person  or
     circumstance,  such  finding  shall not render  that  provision  invalid or
     unenforceable as to any other persons or  circumstances.  If feasible,  any
     such  offending  provision  shall be deemed to be modified to be within the
     limits of enforceability or validity;  however,  if the offending provision
     cannot be so  modified,  it shall be stricken and all other  provisions  of
     this Agreement in all other respects shall remain valid and enforceable.

     SUCCESSOR INTERESTS. Subject to the limitations set forth above on transfer
     of the  Collateral,  this Agreement  shall be binding upon and inure to the
     benefit of the parties,  their successors and assigns;  provided,  however,
     Grantor's,  rights  and  obligations  hereunder  may  not  be  assigned  or
     otherwise transferred without the prior written consent of Lender.

     TIME IS OF THE ESSENCE.  Time is of the essence in the  performance of this
     Agreement.

     WAIVER.  Lender  shall not be deemed to have  waived any rights  under this
     Agreement  unless such waiver is given in writing and signed by Lender.  No
     delay or  omission  on the part of Lender  in  exercising  any right  shall
     operate as a waiver of such right or any other right. A waiver by Lender of
     a provision of this Agreement shall not prejudice or constitute a waiver of
     Lender's right to thereafter  demand strict  compliance with that provision
     or any other  provision of this Agreement.  No prior waiver by Lender,  nor
     any course of dealing between Lender and Grantor, shall constitute a waiver
     of any of Lender's rights or of
<PAGE>
08-13-1999                 COMMERCIAL SECURITY AGREEMENT                  PAGE 6
LOAN NO.                           (CONTINUED)

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

     any of Grantor's  obligations as to any future  transactions.  Whenever the
     consent of Lender is required  under this  Agreement,  the granting of such
     consent by Lender in any instance shall not constitute  continuing  consent
     to  subsequent  instances  where such  consent is required and in all cases
     such consent may be granted or withheld in the sole discretion of Lender.

GRANTOR  ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS COMMERCIAL SECURITY
AGREEMENT,  AND GRANTOR AGREES TO ITS TERMS.  THIS AGREEMENT IS DATED AUGUST 13,
1999.

GRANTOR:

WORLD WIDE STONE CORPORATION

By: /s/ Spencer Cunningham
    --------------------------------------
    SPENCER CUNNINGHAM, Vice President

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