Document:

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                                                                  EXHIBIT 10.25

                                 LEASE AGREEMENT

                                 by and between

                           SOUTH BEND PARTNERS, L.P.,
                                    Landlord

                                       and

                         EGL EAGLE GLOBAL LOGISTICS, LP,
                                     Tenant

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                                TABLE OF CONTENTS

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<S>         <C>                                                                                                 <C>
ARTICLE 1.  BASIC PROVISIONS AND CERTAIN DEFINED TERMS............................................................1

ARTICLE 2.  PREMISES..............................................................................................4

ARTICLE 3.  TERM..................................................................................................5

       3.1    TERM5

ARTICLE 4.  BASE RENT AND ADDITIONAL RENT.........................................................................5

       4.1    BASE RENT...........................................................................................5

       4.2    ADDITIONAL RENT.....................................................................................6

       4.3    LATE PAYMENTS.......................................................................................7

       4.4    NET LEASE...........................................................................................7

ARTICLE 5.  UTILITIES.............................................................................................8

       5.1    PAYMENT OF UTILITIES................................................................................8

       5.2    INTERRUPTION OF UTILITIES...........................................................................8

       5.3    PERSONAL PROPERTY TAXES.............................................................................8

       5.4    RENT SALES TAX......................................................................................9

ARTICLE 6. USE; ENVIRONMENTAL.....................................................................................9

       6.1    PERMITTED USE.......................................................................................9

       6.2    ENVIRONMENTAL.......................................................................................9

ARTICLE 7. ASSIGNMENT AND SUBLETTING.............................................................................10

       7.1    CONSENT OF LANDLORD................................................................................10

       7.2    ASSIGNMENT; TRANSFER...............................................................................11

ARTICLE 8. REPAIR AND MAINTENANCE................................................................................11

       8.1    LANDLORD REPAIRS...................................................................................11

       8.2    TENANT REPAIRS AND MAINTENANCE.....................................................................12

       8.3    PROPERTY CONDITION.................................................................................12

       8.4    ENTRY BY LANDLORD..................................................................................12

       8.5    LIENS..............................................................................................13

       8.6    COSTS..............................................................................................13

ARTICLE 9.  ALTERATIONS AND FIXTURES.............................................................................14

       9.1    NO ALTERATIONS.....................................................................................14

       9.2    REMOVABLE TRADE FIXTURES...........................................................................14

ARTICLE 10.  FIRE AND DESTRUCTION OF PREMISES....................................................................15
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<S>         <C>                                                                                                 <C>
       10.1      DAMAGE OR DESTRUCTION OF LEASED PREMISES........................................................15

       10.2      RESTORATION OF LEASED PREMISES..................................................................15

       10.3      FIRE AND EXTENDED COVERAGE INSURANCE............................................................15

       10.4      WAIVER OF SUBROGATION...........................................................................16

ARTICLE 11.  LIABILITY AND INDEMNITY; INSURANCE..................................................................16

       11.1      MUTUAL INDEMNITY................................................................................16

       11.2      TENANT'S INSURANCE..............................................................................17

ARTICLE 12.  DEFAULT, REMEDIES AND DETERMINATION OF DAMAGES......................................................19

       12.1      DEFAULT.........................................................................................19

       12.2      TENANT DEFAULT AND LANDLORD REMEDIES............................................................19

       12.3      LANDLORD DEFAULT AND TENANT REMEDIES............................................................21

       12.4      ATTORNEY'S FEES.................................................................................21

ARTICLE 13.  NON-WAIVER..........................................................................................22

ARTICLE 14.  HOLDING OVER........................................................................................22

ARTICLE 15.  LANDLORD-TENANT RELATION............................................................................22

ARTICLE 16.  EMINENT DOMAIN......................................................................................22

       16.1      EFFECT OF TAKING................................................................................22

       16.2      CONDEMNATION AWARDS.............................................................................23

ARTICLE 17.  LANDLORD'S MORTGAGEE................................................................................23

       17.1      SUBORDINATION/NON-DISTURBANCE...................................................................23

       17.2      ESTOPPEL CERTIFICATE............................................................................24

       17.3      ATTORNMENT......................................................................................24

ARTICLE 18.  NOTICE..............................................................................................24

ARTICLE 19.  TENANT'S SIGNS......................................................................................25

ARTICLE 20.  MISCELLANEOUS.......................................................................................25

       20.1      CAPTIONS........................................................................................25

       20.2      SEVERABILITY....................................................................................25

       20.3      SUCCESSORS AND ASSIGNS..........................................................................25

       20.4      NO CONSTRUCTIVE EVICTION........................................................................25

       20.5      TIME OF THE ESSENCE.............................................................................26

       20.6      LOCATION OF PERFORMANCE.........................................................................26

       20.7      ENTIRE AGREEMENT; AMENDMENTS....................................................................26

       20.8      FORCE MAJEURE...................................................................................26

       20.9      QUIET ENJOYMENT.................................................................................26
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<S>         <C>                                                                                                 <C>
       20.10     TITLE...........................................................................................27

       20.11     COMPLIANCE WITH LAWS............................................................................27

       20.12     STATEMENT OF INTENT.............................................................................27

       20.13     PERMITTED ENCUMBRANCES..........................................................................27

       20.14     NO REDEMPTION...................................................................................28

       20.15     NO MERGER OF TITLE..............................................................................28

       20.16     SPECIAL PROVISIONS REGARDING LANDLORD...........................................................28

       20.17     MULTIPLE COUNTERPARTS...........................................................................28

       20.18     MAINTENANCE ARBITRATION.........................................................................28

LIST OF EXHIBITS:

Exhibit "A".......-........Leased Premises
Exhibit "B".......-........[Intentionally Omitted]
Exhibit "C".......-........[Intentionally Omitted]
Exhibit "D".......-........Permitted Encumbrances
Exhibit "E".......-........Form of Subordination, Non-Disturbance and Attornment Agreement
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                                 LEASE AGREEMENT
                              (South Bend, Indiana)

         THIS LEASE AGREEMENT ("Lease") is entered into by and between Landlord
and Tenant effective as of the 20th day of December, 2002 in accordance with the
terms and conditions hereinafter set forth.

                              W I T N E S S E T H:

ARTICLE 1.  BASIC PROVISIONS AND CERTAIN DEFINED TERMS

         (a)  "Landlord": South Bend Partners, L.P., a Texas limited partnership

         (b)  Notice Address of Landlord: 10100 North Central Expressway, Suite
              200 Dallas, Texas 75231 Attention: John L. Jenkins

         (c)  "Tenant": EGL Eagle Global Logistics, LP, a Delaware limited
              partnership, its successors and permitted assigns

         (d)  Notice Address of Tenant: 15350 Vickery Drive, Houston, Texas
              77032 Attention: General Counsel

         (e)  "Leased Premises": as more particularly described in Article 2

         (f)  "Term": From the Commencement Date through the Expiration Date

              "Lease Year":  Each calendar year during the Term

              "Commencement Date":  December 20, 2002

              "Expiration Date":  January 31, 2014

              "Renewal Option(s)":  Four five (5) year renewal options, as more
              particularly described in Article 3 hereof

            [THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

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         (g)  "Base Rent":

                  Monthly Annual
                    Lease Year         Base Rent          Base Rent
                  --------------       ---------          ---------

                    2002               $21,233.33         $254,800.00
                    2003               $21,233.33         $254,800.00
                    2004               $21,658.00         $259,896.00
                    2005               $22,091.16         $265,093.92
                    2006               $22,532.98         $270,395.80
                    2007               $22,983.64         $275,803.71
                    2008               $23,443.32         $281,319.79
                    2009               $23,912.18         $286,946.18
                    2010               $24,390.43         $292,685.11
                    2011               $24,878.23         $298,538.81
                    2012               $25,375.80         $304,509.59
                    2013               $25,883.31         $310,599.78
                    2014               $26,400.98         $316,811.78

         (h)  "Additional Rent" as particularly described in Section 4.2 hereof

         (i)  "Building": shall refer to one or more buildings located on the
              Property, as more particularly described in Exhibit "A" attached
              hereto and made a part hereof

         (j)  [Intentionally Omitted]

         (k)  "FMRV" shall mean the fair market rental value as more
              particularly described in Article 3 hereof

         (l)  "Impositions" as more particularly described in Section 4.2 hereof

         (m)  [Intentionally Omitted]

         (n)  Permitted Use: Use as an office, warehouse, freight forwarding,
              facility for general distribution of products, and facility for
              receiving and distribution of air cargo, as more particularly
              described in Article 6 hereof

         (o)  Utilities: Utilities shall be separately metered and Tenant shall
              be responsible for payment of all utilities.

         (p)  Additional Rent: In addition to the Base Rent due hereunder,
              Tenant shall also pay on or before the due date thereof, or if
              there is no due date specified, within ten (10) days after receipt
              of bill, as set forth in this Lease, all expenses and other items
              related to the Leased Premises (unless Landlord is expressly
              obligated to pay the same under this Lease), all of which shall
              constitute Additional Rent.

         (q)  "Hazardous Materials" shall mean any hazardous substance (as
              defined herein) on, under or about the Leased Premises which is
              subject to one or more of the following federal laws or their
              state equivalents: the Comprehensive Environmental Response,
              Compensation and Liability Act, the Superfund

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              Amendment and Reauthorization Act, the Resource Conservation
              Recovery Act, The Toxic Substance Control Act, the Federal Water
              Pollution Control Act, the Federal Environmental Pesticides Act,
              the Clean Water Act and the Clean Air Act; any so-called federal,
              state or local "Superfund" or "Superlien" statute; or any other
              statute, law, ordinance, code, rule, regulation, order or decree
              regulating, relating to or imposing liability (including strict
              liability) or standards of conduct concerning any hazardous
              substances (collectively, the "Hazardous Substance Laws"). For
              purposes of this Lease, the term "hazardous substances" shall mean
              and include any substance, whether solid, liquid or gaseous: (i)
              which is listed, defined or regulated as a "hazardous substance,"
              "hazardous waste" or "solid waste," or otherwise classified as
              hazardous or toxic, in or pursuant to any Hazardous Substance
              Laws; (ii) which is or contains asbestos, radon, any
              polychlorinated biphenyl, urea, formaldehyde, foam insulation, or
              explosive or radioactive material; (iii) which is or contains
              petroleum or petroleum products, including any fractions or
              distillates thereof; or (iv) which causes or poses a threat to
              cause a contamination or nuisance on the Leased Premises or on any
              adjacent property or a hazard to the environment or to the health
              or safety of persons on the Leased Premises. As used in this
              definition, the word "on" when used with respect to the Leased
              Premises or adjacent property means "on, in, under, above or
              about."

         (r)  "Governmental Authority" shall mean any and all courts, boards,
              agencies, commissions, offices, or authorities of any nature
              whatsoever for any governmental unit (federal, state, county,
              district, municipal, city, or otherwise) whether now or hereafter
              in existence.

         (s)  "Legal Requirements": (i) Any and all present and future judicial
              or administrative decisions, laws, statutes, rulings, rules,
              regulations, permits, certificates, or ordinances of any
              Governmental Authority in any way applicable to Landlord or
              Tenant, the business of Landlord or Tenant, or the Building and
              Leased Premises, including the ownership, use, occupancy,
              operation, maintenance, repair, or reconstruction thereof, and
              including, without limitation RCRA, CERCLA, TSCA, and any other
              statutes, regulations, ordinances, or similar laws enacted by any
              Governmental Authority relating to health or the environment, (ii)
              Tenant's present or subsequently effective Bylaws and Articles of
              Incorporation, (iii) any and all Leases and other contracts
              (written or oral) of any nature to which Tenant may be bound, and
              (iv) all agreements, covenants, restrictions and conditions of
              record which may be applicable to Tenant, Landlord or to all or
              any part of or interest in Leased Premises, being more
              particularly described in Exhibit "D" hereto.

         (t)  "Prime Rate" shall mean that certain rate of interest per annum
              established from time to time by Bank of America, N.A. and
              designated as its "Prime Rate" regardless of whether such rate is
              the lowest rate charged to its best customers. It is agreed that
              in the event Bank of America, N.A. is no longer in business, then
              the "Prime Rate" of the successor to Bank of America, N.A. shall
              be used in this Lease, and if there is no such successor, then the
              Prime Rate of the largest national bank in terms of assets having
              offices in Houston, Texas shall be used for this Lease.

                                      -3-

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         (u)  "Emergency" shall be deemed to exist if, in the good faith
              judgment of Landlord, prompt repairs are needed in order to
              prevent death or bodily injury or material property damage (other
              than de minimis property damage).

         Each of the foregoing provisions and defined terms shall be construed
in conjunction with the references thereto contained in the other sections of
this Lease. Each reference in this Lease to any of the foregoing basic Lease
provisions and defined terms shall be construed to incorporate each term set
forth above under such basic Lease provisions or defined term.

                               ARTICLE 2. PREMISES

              (a) Landlord hereby leases and demises to Tenant, and Tenant
         hereby leases from Landlord the real property described in Exhibit "A",
         such exhibit being attached hereto and incorporated herein for all
         purposes, together with the Building and all other improvements and
         fixtures located thereon (to the extent the same are owned by Landlord)
         (hereinafter called the "Leased Premises").

              (b) The Leased Premises are demised and let subject to (i) the
         Permitted Encumbrances described on Exhibit "D" hereto (the "Permitted
         Encumbrances"), (ii) all Legal Requirements, including any existing
         violation of any thereof, and (iii) the condition of the Leased
         Premises as of the commencement of the Term; it being understood and
         agreed, however, that the recital of the Permitted Encumbrances herein
         shall not be construed as a revival of any thereof which for any reason
         may have expired.

              (c) LANDLORD LEASES AND WILL LEASE AND TENANT TAKES AND WILL TAKE
         THE LEASED PREMISES "AS IS", AND TENANT ACKNOWLEDGES THAT LANDLORD
         (WHETHER ACTING AS LANDLORD HEREUNDER OR IN ANY OTHER CAPACITY) HAS NOT
         MADE AND WILL NOT MAKE, NOR SHALL LANDLORD BE DEEMED TO HAVE MADE, ANY
         WARRANTY OR REPRESENTATION, EXPRESS OR IMPLIED, WITH RESPECT TO ANY OF
         THE LEASED PREMISES, INCLUDING ANY WARRANTY OR REPRESENTATION AS TO ITS
         FITNESS FOR USE OR PURPOSE, DESIGN OR CONDITION FOR ANY PARTICULAR USE
         OR PURPOSE, AS TO THE QUALITY OF THE MATERIAL OR WORKMANSHIP THEREIN,
         LATENT OR PATENT, AS TO LANDLORD'S TITLE THERETO, OR AS TO VALUE,
         COMPLIANCE WITH SPECIFICATIONS, LOCATION, USE, CONDITION,
         MERCHANTABILITY, QUALITY, DESCRIPTION, DURABILITY OR OPERATION, IT
         BEING AGREED THAT ALL RISKS INCIDENT THERETO ARE TO BE BORNE BY TENANT.
         TENANT ACKNOWLEDGES THAT THE LEASED PREMISES ARE OF ITS SELECTION AND
         TO ITS SPECIFICATIONS, AND THAT THE LEASED PREMISES HAVE BEEN INSPECTED
         BY TENANT AND ARE SATISFACTORY TO IT. IN THE EVENT OF ANY DEFECT OR
         DEFICIENCY IN ANY OF THE LEASED PREMISES OF ANY NATURE, WHETHER PATENT
         OR LATENT, AND EXCEPT TO THE EXTENT LANDLORD IS OBLIGATED UNDER SECTION
         20.11, LANDLORD SHALL NOT HAVE ANY RESPONSIBILITY OR LIABILITY WITH
         RESPECT THERETO OR FOR ANY INCIDENTAL OR CONSEQUENTIAL DAMAGES
         (INCLUDING STRICT LIABILITY IN TORT). THE PROVISIONS OF THIS SECTION
         2(c) HAVE BEEN NEGOTIATED, AND THE FOREGOING PROVISIONS ARE INTENDED TO
         BE A COMPLETE EXCLUSION AND NEGATION OF ANY WARRANTIES BY LANDLORD,
         EXPRESS OR IMPLIED, WITH RESPECT TO ANY OF THE LEASED PREMISES, ARISING
         PURSUANT TO THE

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         UNIFORM COMMERCIAL CODE OR ANY OTHER LAW NOW OR HEREAFTER IN EFFECT OR
         OTHERWISE.

ARTICLE 3.  TERM

3.1      Term.

         The Term of this Lease shall commence on the Commencement Date as
defined in Section 1.1(f) and shall terminate on the Expiration Date as defined
in Section 1.1(f) above unless sooner terminated or extended in accordance with
the terms and conditions hereinafter set forth. So long as no Event of Default
has occurred and this Lease has not been terminated, Tenant shall have the right
and option to renew this lease for four (4) additional consecutive periods of
five (5) years each, next immediately ensuing after the Expiration Date of the
initial Term of this Lease and the subsequent renewal periods by notifying
Landlord in writing not less than six (6) months before the expiration of the
immediately preceding initial Term or subsequent renewal Term of this Lease of
the Tenant's intention to exercise its option to renew, but Tenant shall have no
option to extend this Lease beyond four (4) renewal periods of five (5) years
each after the initial Term. If Tenant shall fail to properly exercise a Renewal
Option, then all options with regard to subsequent Renewal Terms shall expire
and be null and void. In the event that Tenant so elects to extend this Lease,
then, for such extended period of the Term, all of the terms, covenants and
conditions of this Lease shall continue to be, and shall be, in full force and
effect during such extended period of the Term hereof, except for the Base Rent
(which shall be adjusted as hereinafter provided). The Base Rent for the first
Lease Year of each extended period shall be as mutually agreed upon by Landlord
and Tenant not less than six (6) months prior to the expiration of the then
current Term hereof and shall be increased thereafter as set forth in Section 3
hereof. If Landlord and Tenant are unable to mutually agree on the new Base Rent
for the first Lease Year of such extended period then, within one hundred twenty
(120) days prior to the expiration of the then current Term of this Lease, each
of Landlord and Tenant shall select a duly qualified real estate appraiser. The
Base Rent shall be ninety-five percent (95%) of the annual fair market rental
value (the "FMRV") of the Leased Premises as determined by the two (2)
appraisers selected by Tenant and Landlord as of the date which is sixty (60)
days before the date of the expiration of the then existing Term of this Lease.
The appraisers shall issue their reports within twenty (20) days after their
appointment. If the higher of the two (2) appraisals is less than or equal to
one hundred ten percent (110%) of the lower, FMRV shall be the average of the
two; if not, the two (2) appraisers shall then mutually select the third (3rd)
appraiser within ten (10) days. The third (3rd) appraiser so selected shall
determine which of the two (2) appraisers' determination is closest to FMRV
within ten (10) days and such determination shall be deemed to be the FMRV.
Landlord shall pay the cost of the appraisal by the appraiser selected by
Landlord. Tenant shall pay the cost of the appraisal by the appraiser selected
by Tenant. Landlord and Tenant shall equally bear the cost of the third
appraiser.

ARTICLE 4.  BASE RENT AND ADDITIONAL RENT

4.1      Base Rent.

         As "Base Rent" (herein so called), Tenant covenants and agrees to pay
to Landlord at the notice address of Landlord set forth in Section 1.1(b) or at
such other address as Landlord may from time to time designate in writing, the
sum(s) set forth in Section 1.1(g) above for the respective periods set forth in
such Section 1.1(g). All such Base Rent payments shall be made on the first
(1st) day of each calendar month, monthly in advance, for each and every month
in the term of this Lease. On the Commencement Date, Tenant will pay Landlord
Base Rent for the first (1st) full calendar month of the Lease Term; plus if the
Lease Term does not commence on the first (1st) day of the calendar month,
Tenant will also pay in

                                      -5-

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advance a pro rata part of such sum as Base Rent for such partial month. During
the Term of this Lease, the Base Rent shall be increased for each succeeding
Lease Year by an amount equal to the Base Rent for the preceding Lease Year
multiplied by two percent (2%), beginning on the first anniversary of the
Commencement Date and continuing on each anniversary thereafter. If requested by
Landlord, all payments of Base Rent shall be made by wire transfer in
immediately available federal funds to such account in such bank as Landlord
shall designate, from time to time, and such payment of Base Rent shall be made
on the first (1st) business day of each calendar month.

4.2      Additional Rent .

         Tenant shall promptly pay all taxes, assessments, impositions, levies,
charges, excises, fees, licenses and other sums (collectively, "Impositions")
levied, assessed, charged or imposed by any Governmental Authority or other
taxing authority for any period prior to or during the Term of this Lease
against or with respect to the Leased Premises or the Base Rent or Additional
Rent payable hereunder. The amount to be paid by Tenant on account of taxes
during the last calendar years in which any portion of the Term falls shall be
prorated per diem so that Tenant is liable only for so much of such taxes as the
portion of the Term which falls within such calendar year bears to a full
calendar year. In case of special taxes which may be payable in installments,
only the amount of each installment payable during a calendar year shall be
included in taxes for that calendar year. If received by Landlord, Landlord
shall provide to Tenant a copy of all final tax bill(s) for each calendar year
within ten (10) days after Landlord's receipt of such tax bill(s). Tenant shall
prepare and file all reports required by governmental authorities which relate
to the Impositions to be paid hereunder. Tenant shall deliver to Landlord, (i)
within ten (10) days after Tenant's receipt thereof, copies of all settlements
and notices pertaining to the Impositions provided hereunder which may be issued
by any Governmental Authority, and (ii) receipts for payments of all such
Impositions made during each calendar year of the Term, within thirty (30) days
after payment. In the event that the Tenant fails to pay any Impositions prior
to becoming delinquent, Tenant shall also pay all interest, penalties and other
amounts payable as a result of such failure to pay when due.

         The Tenant may contest the amount or validity of any Imposition
described in this Section 4.2 by appropriate proceedings. However, the Tenant
shall promptly pay such Imposition unless such proceedings shall operate to
prevent or stay the collection of the Imposition so contested. The Landlord, at
the Tenant's sole expense, shall join in any such contestation proceedings if
any Law shall so require. In no event shall Tenant pursue any contest with
respect to any Impositions referred to above in such manner that exposes
Landlord to (i) criminal liability, penalty or sanction, (ii) any civil
liability, penalty or sanction for which Tenant has not made provisions
reasonably acceptable to Landlord, or (iii) defeasance of its interest the
Leased Premises. Tenant agrees that each such contest shall be promptly and
diligently prosecuted to a final conclusion, except that Tenant shall, have the
right to attempt to settle or compromise such contest through negotiations.
Tenant shall pay and save Landlord harmless against any and all losses,
judgments, decrees and costs (including all attorneys' fees and expenses) in
connection with any such contest and shall, promptly after the final
determination of such contest, fully pay and discharge the amounts which shall
be levied, assessed, charged or imposed or be determined to be payable therein
or in connection therewith, together with all penalties, fines, interest, costs
and expenses thereof or in connection therewith, and perform all acts the
performance of which shall be ordered or decreed as a result thereof.

          All sums and charges of whatsoever nature required to be paid by
Tenant pursuant to the terms of this Lease other than Base Rent shall constitute
Additional Rent (whether or not same be designated "Additional Rent") and
failure by Tenant to timely pay such other sums or charges may be treated by
Landlord as a failure by Tenant to pay Base Rent. Tenant shall promptly deliver
to Landlord upon Landlord's request copies of actual paid receipts, bills or
other documentation evidencing all other

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<PAGE>

charges which constitute Additional Rent hereunder for which Tenant is
responsible with respect to the Leased Premises in accordance with the terms of
this Lease.

4.3      Late Payments .

         If any installment of Base Rent is not paid within ten (10) days after
the same is due, Tenant shall pay to Landlord, within five (5) business days
after demand therefor, as Additional Rent, a late charge equal to five percent
(5%) (the "Late Charge") on such overdue installment of Base Rent. If Tenant
shall fail to make payment of any installment of Base Rent or any Additional
Rent after the date when each such payment is due, Tenant shall pay to Landlord
interest at a rate (herein called the "Default Rate") equal to the Prime Rate
(or, if less, the highest rate permitted by applicable law) on the amount unpaid
computed from the date such payment of Base Rent or Additional Rent was due to
and including the date of payment. Notwithstanding the foregoing, the first late
payment of Base Rent during any consecutive twelve (12) month period shall not
be subject to a Late Charge.

4.4      Net Lease; Non-Terminability .

              (a) This is a net lease and all Base Rent, Additional Rent and all
         other sums payable hereunder by Tenant shall be paid without notice
         (except as otherwise specifically provided in this Lease), demand,
         setoff, counterclaim, recoupment, abatement (except as otherwise
         specifically provided in Sections 5.2, 8.4, 10.1 and 16.1 of this
         Lease), suspension, deferment, diminution, deduction, reduction or
         defense.

              (b) This Lease shall not terminate (except as otherwise expressly
         provided in Articles 10, 12 and 16 of this Lease), and Tenant shall not
         have any right to terminate this Lease (except as expressly provided in
         Articles 10 and 16 of this Lease), during the Term. Tenant shall not be
         entitled to any setoff, counterclaim, recoupment, abatement,
         suspension, deferment, diminution, deduction, reduction or defense of
         or to Base Rent, Additional Rent or any other sums payable under this
         Lease; and the obligations of Tenant under this Lease shall not be
         affected by any interference with Tenant's use of any of the Leased
         Premises for any reason, including the following: (i) any damage to or
         destruction of any of the Leased Premises by any cause whatsoever,
         except as otherwise expressly provided in Article 10 hereunder, (ii)
         any Condemnation (except as otherwise expressly provided in Article 16
         hereof), (iii) the prohibition, limitation or restriction of Tenant's
         use of any of the Leased Premises, (iv) any eviction by paramount title
         or otherwise, (v) Tenant's acquisition of ownership of any of the
         Leased Premises other than pursuant to an express provision of this
         Lease, (vi) any latent or other defect in, or any theft or loss of any
         of the Leased Premises, or (vii) any other cause, whether similar or
         dissimilar to the foregoing, any present or future law to the contrary
         notwithstanding. It is the intention of the parties hereto that the
         obligations of Tenant under this Lease shall be separate and
         independent covenants and agreements, and that Base Rent, Additional
         Rent and all other sums payable by Tenant hereunder shall continue to
         be payable in all events (or, in lieu thereof, Tenant shall pay amounts
         equal thereto), and that the obligations of Tenant under this Lease
         shall continue unaffected, unless this Lease shall have been terminated
         pursuant to Articles 10 or 16 of this Lease.

              (c) This Lease is the absolute and unconditional obligation of
         Tenant. Tenant waives all rights which are not expressly stated in this
         Lease but which may now or hereafter otherwise be conferred by Law (i)
         to quit, terminate or surrender this Lease or any of the Leased
         Premises, (ii) to any setoff, counterclaim, recoupment, abatement,
         suspension, deferment, diminution, deduction, reduction or defense of
         or to Base Rent, Additional Rent or any other sums payable under this
         Lease, and (iii) for any statutory lien or offset right against
         Landlord or its property.

                                       -7-

<PAGE>

                           ARTICLE 5. UTILITIES; TAXES

5.1      Payment of Utilities.

         From and after the Commencement Date, the utilities in the Leased
Premises shall be separately metered at Tenant's cost and expense. Tenant will
at its own cost and expense pay for all water, sanitary sewer, gas, electricity,
telephone, and other utilities, janitorial services (if Tenant contracts for
such services) and grounds maintenance (exclusive of repairs to paving) used in
the Leased Premises. Such payments shall be made by Tenant directly to the
supplier of any utility or service provider to the Leased Premises. Tenant shall
make its own arrangements for, and shall be solely responsible for, delivery of
all utility services to the Leased Premises, and Landlord shall be under no
obligation to furnish any utilities to the Leased Premises and, except as
hereinafter expressly provided, shall not be liable for any interruption or
failure in the supply of any such utilities.

5.2      Interruption of Utilities.

         Except for an interruption caused by the gross negligence or willful
misconduct of Landlord, its agents or employees, no interruption or malfunction
of any utility services (including, without limitation, water, sanitary sewer,
gas, and electricity services) shall constitute a breach by Landlord of any of
its obligations hereunder or render Landlord liable for any damages (except if
caused by the gross negligence or willful misconduct of Landlord, its agents or
employees.

         Landlord shall use reasonable efforts to promptly restore any utility
service that becomes unavailable due to gross negligence or willful misconduct
of the Landlord, its agents or employees. However, if Tenant is prevented from
making reasonable use of all or a portion of the Leased Premises for more than
five (5) consecutive days because of the unavailability of the utility service
caused by the gross negligence or willful misconduct of Landlord, Tenant shall
be entitled to abatement of Base Rent, or the pro rata portion thereof
equivalent to the portion of the Leased Premises rendered reasonably unusable
for use in the manner theretofore customarily used by Tenant, for each
consecutive day (after such five (5) day period) that Tenant is so prevented
from making reasonable use of the Leased Premises or the applicable portion
thereof.

         If Landlord fails to restore the utility service for a period in excess
of five (5) consecutive days due to an interruption caused by the gross
negligence or willful misconduct on the part of Landlord, its agents or
employees, Tenant shall additionally have the right to then expend reasonable
sums in the correction or curing of any such interruption, and Landlord shall be
obligated to pay such amounts to Tenant within fifteen (15) days after demand.

5.3      Personal Property Taxes.

         Tenant shall pay the full amount of all taxes, assessments,
impositions, levies, charges, excises, fees, licenses and other sums levied,
assessed, charged or imposed by any Governmental Authority or other taxing
authority for any period prior to or during the Term of this Lease upon Tenant's
leasehold interest under this Lease and all alterations, additions, fixtures
(including Removable Trade Fixtures, as hereinafter defined), inventory and
other property installed or placed or permitted at the Leased Premises by
Tenant. Within thirty (30) days after notice from Landlord, Tenant shall furnish
Landlord a true copy of receipts evidencing such payment received by Tenant from
the Governmental Authority or other taxing authority assessing such charges.

                                      -8-

<PAGE>

         Except for such insurance as required to be paid by Landlord, Tenant
will also pay all insurance premiums assessed or levied upon any alterations,
additions, fixtures or property installed in the Leased Premises by the Tenant
and all insurance related to Tenant's use, occupancy and operations within the
Leased Premises.

5.4      Rent Sales Tax.

         If there is presently in effect or hereafter adopted any nature of
sales tax or use tax or other tax on rents or other sums received by Landlord
under this Lease (herein referred to as "Rent Sales Tax"), then in addition to
all rent and other payments to be made by Tenant as provided above, Tenant will
also pay Landlord a sum equal to the amount of such Rent Sales Tax. The term
"Rent Sales Tax" shall not include any federal, state or local income taxes
applicable to Landlord.

                         ARTICLE 6. USE; ENVIRONMENTAL

6.1      Permitted Use.

              (a) The Leased Premises may be used and occupied for any lawful
         purposes during the Term of this Lease, including, without limitation,
         the purposes specified in Section 1.1(n) above, and any other uses
         selected by Tenant, in Tenant's sole discretion, which are not
         otherwise prohibited at law and which relate to or supplement any of
         the foregoing. It is hereby acknowledged that Tenant's initial use of
         the Leased Premises will be for the purpose specified in Section
         1.1(n), as well as for such other uses selected by Tenant, in Tenant's
         sole discretion, which are not otherwise prohibited at law. Upon the
         request of Tenant, Landlord will join with Tenant in applications or
         proceedings to obtain any required or desired use permits or licenses
         for the Leased Premises; provided, however, that Tenant shall bear all
         costs in connection therewith. Notwithstanding the foregoing, Tenant
         may not apply or seek to change the legal use of the Leased Premises
         from that specified in Section 1.1(n) if such other use would: (A) have
         an adverse effect on the fair market value of the Leased Premises, (B)
         increase the likelihood that Tenant, Landlord or Lender would incur
         liability under any provisions of any Hazardous Substance Laws, or (C)
         result in or give rise to any environmental deterioration or
         degradation of the Leased Premises, or (ii) any purpose which would
         constitute a public or private nuisance or waste or which would violate
         any of the provisions of any Permitted Encumbrance, any Legal
         Requirements, any insurance requirements or any covenants, restrictions
         or agreements hereafter created by or consented to by Landlord and
         Tenant which are applicable to the Leased Premises.

              (b) Notwithstanding anything contained or set forth in this Lease
         to the contrary, nothing set forth in this Lease shall be construed, in
         any manner whatsoever, as an express or implied covenant on the part of
         Tenant to commence business operations or to thereafter continuously
         operate any business operations on the Leased Premises, and Landlord
         specifically acknowledges that there is no covenant of initial or
         continuous operation on the part of the Tenant, express or implied.

6.2      Environmental.

         Tenant shall not cause or permit any Hazardous Materials to be used,
generated, stored or disposed of in, on or under, or released from, or
transported to or from the Leased Premises unless such Hazardous Materials are
received, stored and shipped by Tenant in the ordinary course of Tenant's
business in accordance with all Hazardous Substance Laws; provided, however,
Tenant shall at all times and in all material respects comply with all Legal
Requirements and further provided that Tenant shall periodically cause to be
removed from the Leased Premises Hazardous Materials placed thereon by Tenant or
Tenant's agents, servants, employees, guests, invitees and/or independent or any
other persons

                                      -9-

<PAGE>

or entities, such removal to be performed by persons or entities duly qualified
to handle and dispose of Hazardous Materials. Upon the expiration or earlier
termination of this Lease, Tenant shall cause all Hazardous Materials on the
Leased Premises to be removed, at Tenant's cost and expense, from the Leased
Premises and disposed of in strict accordance with the Hazardous Substance Laws.

          Tenant shall indemnify, defend (by counsel reasonably acceptable to
Landlord), protect, and hold Landlord harmless, from and against any and all
claims, liabilities, penalties, fines, judgment, forfeitures, losses, costs
(including clean-up costs) or expenses (including attorney's fees, consultant's
fees and expert's fees) for the death of or injury to any person or damage to
any property whatsoever, arising from or caused in whole or in part, directly or
indirectly, by (a) the presence before or after the Commencement Date in, on,
under, or about the Leased Premises of any Hazardous Materials; (b) any
discharge or release before or after the Commencement Date in or from the
Premises of any Hazardous Materials; (c) the use, storage, transportation,
generation, disposal, release or discharge before or after the Commencement Date
of Hazardous Materials, to, in, on, under, about or from the Leased Premises; or
(d) Tenant's failure after the Commencement Date to comply, or to cause the
Leased Premises to comply, with any Legal Requirements.

          Landlord shall indemnify, defend (by counsel reasonably accepted to
Tenant), protect, and hold Tenant harmless, from and against any and all claims,
liabilities, penalties, fines, judgment, forfeitures, losses, costs (including
clean-up costs) or expenses (including attorney's fees, consultant's fees and
expert's fees) for the death of or injury to any person or damage to any
property whatsoever, arising from or caused in whole or in part, directly or
indirectly, by the use, storage, transportation, generation, disposal, release
or discharge of Hazardous Materials by Landlord or Landlord's employees, agents,
contractors, subcontractors or invitees during the Term of the Lease, to, in,
on, under, about or from the Leased Premises. Landlord agrees to remediate at
Landlord's expense immediately upon receipt of notice from Tenant any condition
described in the previous sentence.

          Tenant has received no written notice from any governmental or private
entity relating to Hazardous Materials on the Leased Premises. Tenant shall
promptly deliver to Landlord copies of all notices made by Tenant to, or
received by Tenant from, any state, county, municipal or other agency having
authority to enforce any environmental law ("Enforcement Agency") or from the
United States Occupational Safety and Health Administration concerning
environmental matters or Hazardous Materials at the Leased Premises. Landlord
shall promptly deliver to Tenant copies of all notices received by Landlord from
any Enforcement Agency or from the United States Occupational Safety and Health
Administration concerning environmental matters or Hazardous Materials at the
Leased Premises.

                      ARTICLE 7. ASSIGNMENT AND SUBLETTING

7.1      Consent of Landlord.

         Tenant shall not assign this Lease, or sublet the Leased Premises, or
any part thereof, without Landlord's prior written consent, which consent shall
not be unreasonably withheld, conditioned or delayed; provided, however, Tenant
shall have the right to sublet up to fifty percent (50%) of the total rentable
square feet contained within the Leased Premises without the necessity of
obtaining Landlord's prior consent and without releasing the Tenant from
liability under this Lease. Prior to any sublease or assignment, Tenant shall
first notify Landlord in writing of its election to sublease all or a portion of
the Leased Premises or to assign this Lease or any interest hereunder, and shall
provide Landlord current financial information and other information requested
by Landlord regarding the proposed assignee or subtenant. At any time within
fifteen (15) days after service of said notice and delivery of such

                                      -10-

<PAGE>

information, Landlord shall notify Tenant that it consents or refuses to consent
to the sublease or assignment.

         Landlord shall not have the right to recapture any sublease or
assignment space. Any denial of such sublease or assignment by Landlord as
hereinabove provided must be predicated upon a "commercially reasonable basis"
for such denial. Tenant shall retain any profits paid in connection with a
sublease or assignment in excess of Tenant's Base Rent obligations hereunder,
which profits shall be calculated after deducting all costs incurred by Tenant
in connection with the space subject to the transfer, which shall include, but
not be limited to, tenant improvements, leasing commissions and the time to
sublease and remodel the Leased Premises.

         Any assignment or subletting shall not release Tenant of its liability
under this Lease nor permit any subsequent assignment, subletting or other
prohibited act, unless specifically provided in such consent. Within thirty (30)
days of any assignment or subletting, Tenant shall provide to Landlord executed
copies of all assignment or subleasing documents.

7.2      Assignment; Transfer.

         For purposes of this Lease, an "assignment" shall include (but shall
not be limited to) the following: (i) transfer of the majority of the ownership
interests in Tenant or any corporation which is a partner or member or other
beneficial owner of Tenant; (ii) transfer of a majority of the ownership
interests in Tenant or in any of the guarantors (whether or not Tenant or the
guarantors are a corporation). A "transfer" includes any sale, merger, share
exchange, consolidation, or dissolution. Notwithstanding the foregoing, no
consent of Landlord is required for Tenant to assign, sublet or otherwise
transfer (by operation of law or otherwise) this Lease or any of its rights
hereunder: (a) to any person, corporation, partnership or other entity which
acquires all or substantially all of the business or assets of Tenant or
ownership interest in Tenant; or (b) to any person, corporation, partnership or
other entity which controls, is controlled by or is under common control with
Tenant. Tenant and Tenant's transferee or assignee shall provide notice of any
transfer or assignment described in (a) or (b) hereof not less than fifteen (15)
days prior to the effective date of such transfer or assignment unless
prohibited by law and then, if so prohibited by law, within twenty (20) days
after the date of such transfer or assignment.

                       ARTICLE 8. REPAIR AND MAINTENANCE

8.1      Landlord Repairs.

              (a) Upon Tenant giving Landlord prior written notice of the item
         damaged, Landlord will, at its own cost and expense promptly repair and
         make necessary replacements to the following damage to the Leased
         Premises: damage to the roof, foundation, structural components,
         exterior walls, exterior doors and windows (excluding glass), walks,
         parking areas, driveways, and other exterior areas (including paving),
         exterior plumbing lines (including water lines and gas lines);
         provided, however, that if any such damage to the Leased Premises is
         caused by the Tenant, its agents, employees, customers or invitees,
         other than by normal wear and tear, or any burglar, vandal, or other
         unauthorized entrant, or any other person (with the exception of damage
         caused by gross negligence or willful misconduct of Landlord or of
         Landlord's agents, employees, or contractors), then in such event, such
         damage shall not be subject to this Section 8.1 and Tenant will bear
         the cost of and be responsible to complete such repairs in accordance
         with Section 8.2 hereof.

              (b) Tenant will promptly give Landlord written notice of any
         damage to the Leased Premises requiring repair by Landlord. If Landlord
         shall not commence such repairs within the fifteen (15) days

                                      -11-

<PAGE>

         following written notice from Tenant that such repairs arenecessary
         then Tenant may, at its option, cause such Landlord's repairs to be
         made and shall furnish Landlord with a statement of the cost of such
         repairs upon substantial completion thereof. Upon demand, Landlord
         shall reimburse Tenant for the cost of such repairs plus a service
         charge to cover Tenant's expenses in an amount equal to ten percent
         (10%) of the cost of such repairs within ten (10) days of the date of
         the statement from Tenant setting forth the amount due.

8.2      Tenant Repairs and Maintenance.

         All damage, other than that which Landlord undertakes to repair in
Section 8.1 and incurred after the Commencement Date will be promptly repaired
and all maintenance will be performed and replacements and renewals will be made
to the extent necessary to restore the Leased Premises to the condition existing
on the Commencement Date, except for reasonable wear and tear, by Tenant at
Tenant's sole cost and expense, including without limitation all other
maintenance and repairs necessary or appropriate to cause the Leased Premises to
remain suitable for Tenant's intended commercial purpose and occupancy. Without
limitation of the preceding sentence, Tenant shall be responsible for repairing
all damage to the Leased Premises caused by one or more negligent acts or
omissions of Tenant, its agents, employees, customers or invitees, or any
burglar or other unauthorized entrant, or any other person except for damage
caused by Landlord or of Landlord's agents, employees or contractors as
hereinafter expressly provided All damage to the Leased Premises caused by
Landlord or its agents, employees or contractors shall be repaired by Landlord
in accordance with its obligations under Section 8.1 hereof unless such damage
is caused by Landlord (i) in the exercise of its rights under Section 8.4(b) or
any other provision of this Lease allowing Landlord to cure any defaults of
Tenant, or (ii) in connection with its entry upon the Leased Premises after the
occurrence of an Event of Default under this Lease, in which cases (either (i)
or (ii) of the preceding) Tenant shall be obligated to promptly complete all
such repairs and replacements necessary as a result of any such damage unless
such damage was caused by the gross negligence or willful misconduct of Landlord
or its agents, employees or contractors.

8.3      Property Condition.

         Tenant will not commit waste and will not injure the Leased Premises or
the Building of which they are a part, but will maintain the Leased Premises in
a safe and clean condition and in good repair and in compliance with all
applicable Legal Requirements. Upon termination of this Lease, Tenant will
surrender and deliver up the Leased Premises to Landlord broom-clean and in the
same condition in which they existed as of the Commencement Date, excepting only
ordinary wear and tear and repair and damage arising from a fire or other
casualty occurring to the Leased Premises, and excepting also any damage
required hereunder to be repaired by Landlord. Upon termination of this Lease,
Tenant will also surrender to Landlord all keys to the Leased Premises at the
place stated herein for the payment of rent and inform Landlord, in writing, of
all combinations on locks, safes and vaults, if any, remaining at the Leased
Premises.

8.4      Entry by Landlord.

         (a) Landlord will have a right to enter the Leased Premises at any
reasonable time (including during Tenant's business hours) to inspect the
condition thereof, to show the Leased Premises to lenders and prospective future
lenders and tenants, or to make necessary repairs and improvements allowed or
required hereunder; provided, however, that Landlord shall give Tenant at least
twenty-four (24) hours prior written notice of its intent to enter the Leased
Premises, except in cases of an Emergency. Landlord shall be responsible for any
and all damages, claims or costs incurred by Tenant or its employees or agents
caused by negligent or wrongful acts relating to Landlord's entry onto the
Leased Premises.

                                      -12-

<PAGE>

         If Landlord's entry into the Leased Premises (to the extent due to
completing repair obligations under Section 8.1(a) of the Lease) renders the
Leased Premises unusable for its intended purpose as set forth in Section 1.1(n)
for five (5) or more business days, then Base Rent shall totally abate for each
day or portion thereof that such unusability continues; provided, however, that
Tenant shall not be permitted to abate Base Rent pursuant to this paragraph if
Landlord's entry onto the Leased Premises is required due to or in connection
with Tenant's default under this Lease.

              (b) If Tenant shall be in default under any of the provisions of
         this Lease, Landlord may after thirty (30) days written notice given to
         Tenant and failure of Tenant to cure during said period (provided,
         however, that if the nature of Tenant's default is such that more than
         thirty (30) days are reasonably required to cure, then such thirty (30)
         day period shall be extended for a reasonable time if Tenant commences
         such performance within said thirty (30) day period and thereafter
         diligently completes the required action within a reasonable time, but
         not to exceed a period of one hundred eighty (180) days after notice
         thereof from Landlord), but without notice in the event of an Emergency
         or during the continuance of an Event of Default, and even though the
         existence of such default or the nature thereof is denied or contested
         by Tenant or any other person, do whatever is necessary to cure such
         default as may be appropriate under the circumstances for the account
         of and at the expense of Tenant. In the event of an Emergency, Landlord
         shall make reasonable efforts to notify Tenant of the situation by
         phone or other available communication before taking any action to cure
         such default. All reasonable sums so paid by Landlord and all
         reasonable costs and expenses (including attorneys' fees and expenses)
         so incurred, together with interest thereon at the Default Rate from
         the date of payment or incurring the expense, shall constitute
         Additional Rent payable by Tenant under this Lease and shall be paid by
         Tenant to Landlord on demand.

8.5      Liens.

         Should any mechanic's liens or other liens or affidavits claiming liens
be filed against the Leased Premises or any portion thereof or interest therein
for any reason whatsoever incident to the acts or omissions of Tenant or any
contractor of Tenant or any such contractor's subcontractor or any laborer
performing labor or materialman furnishing materials at or for the Leased
Premises or by reason of any specially fabricated materials whether or not
placed at the Leased Premises, Tenant shall cause the same to be canceled and
discharged of record by payment, bonding or otherwise, within thirty (30) days
after notice by Landlord, or at such earlier time as is necessary to prevent the
foreclosure thereof, or Tenant shall timely contest the lien in a judicial
proceeding, or cause same to be discharged. Notice is hereby given that Landlord
shall not be liable for any labor, services or materials furnished or to be
furnished to Tenant, or to anyone holding any of the Leased Premises through or
under Tenant, and that no mechanic's or other liens for any such labor, services
or materials shall attach to or affect the interest of Landlord in and to any of
the Leased Premises.

8.6      Costs.

         Notwithstanding the other items set forth in this Article 8, Tenant
shall be responsible, at its sole cost and expense, for all costs incurred or
associated with the maintenance, management, or operation of the fixtures and
equipment made a part of the Leased Premises (excluding, however, costs required
to be paid by Landlord under Section 8.1, Article 10, or Article 11).

                                      -13-

<PAGE>

                      ARTICLE 9. ALTERATIONS AND FIXTURES

9.1      No Alterations.

         Tenant will make no alterations or additions to the Leased Premises
without the prior written consent of Landlord, which consent shall not
unreasonably be withheld, delayed or conditioned so long as Tenant is not in
default under this Lease and all other conditions of this Section 9.1 are
satisfied. At such time as Tenant requests such written consent of Landlord,
Tenant shall submit plans and specifications for such alterations or additions
to Landlord. Notwithstanding the foregoing, Tenant shall have the right to make
non-structural alterations, which do not exceed in cost One Hundred Thousand
Dollars ($100,000.00) during each Lease Year without Landlord's consent.

         In the event that Landlord gives its prior written consent to any
alterations, or if such consent is not required, Tenant agrees that in
connection with any alteration: (i) the fair market value of the Leased Premises
shall not be decreased after the completion of any such alteration, and the
structural integrity of the Building or any other improvements shall not be
impaired; (ii) the alterations to be made will be constructed using new
materials of a quality and workmanship at least as good as the original work;
(iii) all such alterations shall be performed in a good and workmanlike manner,
and shall be expeditiously completed in a commercially reasonable time period in
compliance with all Legal Requirements; (iv) Tenant shall promptly pay all costs
and expenses of any such alteration, and shall discharge all liens filed against
any of the Leased Premises arising out of the same; (v) Tenant shall procure and
pay for all permits and licenses required in connection with any such
alteration; (vi) all such alterations shall be the property of Landlord and
shall be subject to this Lease; and (vii) all alterations, the estimated cost of
which in any one instance exceeds One Hundred Thousand and No/100 Dollars
($100,000.00), shall be made under the supervision of an architect or engineer
and, in accordance with plans and specifications which have been submitted to
and approved by Landlord prior to the commencement of the alterations.

9.2      Removable Trade Fixtures.

         Tenant shall remove "Removable Trade Fixtures," as hereinafter defined
(excluding, however, ducts, conduits, wiring, pipes, paneling or other wall
covering or floor covering) and, in addition to other applicable provisions of
this Lease regarding such removal, the following shall apply: (i) Such removal
must be made on or before the Expiration Date or earlier date of termination of
this Lease; and (ii) such removal must be effected without damage to the Leased
Premises or the Building of which the Leased Premises are a part and Tenant must
promptly repair all damage caused by such removal. For the purposes hereof, the
phrase "Removable Trade Fixtures" means the following: all of Tenant's signs,
counters, tables, chairs, desks, racking, standards, wall brackets, hang-rods,
shelves, removable electrical control panels from Tenant's equipment (as opposed
to the electrical panels for the Leased Premises), equipment, security systems,
other business machines, and other equipment used by Tenant in its business
operations that can be removed without damaging the Leased Premises. All
alterations, additions, fixtures, equipment and other property (not constituting
Removable Trade Fixtures) installed or placed by Tenant or any subtenant or
assignee in the Leased Premises shall remain part of the Leased Premises and
Tenant shall have no obligation to remove the same unless Landlord notifies
Tenant (in writing) at the time of its approval thereof that such alterations,
additions, fixtures, equipment or other property must be removed before the end
of the Term.

                                      -14-

<PAGE>

                  ARTICLE 10. FIRE AND DESTRUCTION OF PREMISES

10.1     Damage or Destruction of Leased Premises.

         Tenant shall give prompt written notice to Landlord of any damage
caused to the Leased Premises by fire or other casualty. In the event that the
Leased Premises shall be damaged or destroyed by fire or other casualty and
Landlord or Tenant does not elect to terminate this Lease as hereinafter
provided, Landlord shall proceed with reasonable diligence and at its sole cost
and expense (provided that Landlord shall receive and be entitled to use the
proceeds of the fire and extended coverage insurance carried by Landlord or
Tenant, as applicable, to complete such repairs) to rebuild and repair damage to
the roof, foundation, structural components, exterior walls, exterior doors and
windows (excluding glass), walks, parking areas, driveways, and other exterior
areas (including paving), exterior plumbing lines (including water lines and gas
lines) of the Leased Premises within a period of one hundred eighty (180) days
after the occurrence of the casualty and the Base Rent and other charges
provided for herein shall be abated during such period of rebuilding and
restoration to the extent, and only to the extent that the Leased Premises
cannot be used for the purposes described in Section 1.1(n) as a result thereof.
Notwithstanding the foregoing, Tenant shall be responsible for repairing damage
caused by fire or other casualty to those items set forth in Section 10.2 below.
In the event (a) such Building shall be destroyed or rendered untenantable to an
extent in excess of fifty percent (50%) of the floor area by a casualty covered
by Landlord's insurance and the Leased Premises cannot be restored within one
hundred eighty (180) days thereafter; or (b) the holder of a mortgage, deed of
trust or other lien on the Leased Premises at the time of the casualty elects
pursuant to such mortgage, deed of trust or other lien to require the use of all
or part of Landlord's insurance proceeds in satisfaction of all or part of the
indebtedness secured by the mortgage, deed of trust or other lien; or (c) the
damage has occurred in the last twelve (12) months of the Lease Term, then
Landlord or Tenant may elect to either terminate this Lease or Landlord may
proceed to rebuild and repair the Leased Premises. Either party shall give
written notice to the other of such election within thirty (30) days after the
occurrence of such casualty and if it elects to rebuild and repair shall proceed
to do so with reasonable diligence within a period of one hundred eighty (180)
days after such casualty and at its sole cost and expense.

10.2     Restoration of Leased Premises.

         Landlord's obligation to rebuild and repair under this Article 10 shall
in any event be limited to restoring the Leased Premises, exclusive of any
alterations, additions, improvements, fixtures and equipment installed by
Tenant, to substantially the same condition in which the same existed prior to
the casualty. Tenant agrees that promptly after completion of such work by
Landlord, Tenant will proceed with reasonable diligence and at Tenant's sole
cost and expense to restore, repair and replace all alterations, additions,
improvements, fixtures, signs and equipment installed by Tenant.

10.3     Fire and Extended Coverage Insurance.

         During the Term of this Lease, Tenant shall maintain fire and extended
coverage insurance covering the full replacement cost of the Building and all
other structures and improvements located on the Leased Premises.
Notwithstanding the provisions of Section 10.1, Landlord shall not be liable for
any damage to Tenant's property within the Leased Premises, regardless of cause,
unless due to the gross negligence of Landlord and its employees and agents.

         In the event of a fire or other casualty during the Term of this Lease
and if Tenant obtains the fire and extended coverage insurance itself, Landlord
and Tenant shall proportionately allocate the amount of the deductible for which
each party shall be responsible based upon the amount of damage incurred that

                                      -15-

<PAGE>

would be the restoration responsibility of Landlord under Section 10.1 and the
amount of damage incurred that would be the restoration responsibility of Tenant
under Section 10.2. For purposes of this Lease, the maximum deductible that
Landlord would pay for purposes of this allocation will be $50,000.00,
regardless of the actual stated deductible in Tenant's fire and extended
coverage insurance policy for the Building and Leased Premises. Any remaining
deductible amount in excess of $50,000.00 shall be paid by Tenant.

         For example, assume an event of fire or other casualty occurs during
the Term of this Lease to the Leased Premises and that the total damage to the
Leased Premises totals $1,000,000.00; the amount of damage incurred that is the
restoration responsibility of Landlord under Section 10.1 is determined to be
$600,000.00 and the amount of damage incurred that is the restoration
responsibility of Tenant under Section 10.2 is determined to be $400,000.00
(alternatively stated, 60% of the damage is a Landlord restoration
responsibility under Section 10.1 and 40% of the damage is a Tenant restoration
responsibility under Section 10.2). Given that the maximum deductible subject to
the allocation is $50,000.00, Landlord would pay $30,000.00 of the maximum
deductible ($50,000.00 x 60%) and Tenant would be $20,000.00 of the maximum
deductible ($50,000.00 x 40%). As stated hereinabove, any actual deductible
amount owed to the insurance company in excess of $50,000.00 shall be paid by
Tenant.

         Notwithstanding the foregoing, if Tenant elects not to obtain the
insurance itself, then upon Tenant's request, Landlord shall obtain, at Tenant's
expense as Additional Rent, such fire and extended coverage on Tenant's behalf
as of a mutually agreed upon reasonable date and thereafter maintain such
insurance on Tenant's behalf until (1) Tenant notifies Landlord to cease causing
such insurance to be so carried and (2) Tenant provides Landlord with
certificates of insurance coverage which Tenant obtains to replace such
Landlord's policies, which Tenant furnished certificates of coverage must be in
conformance with the requirements of this Lease. In the event that Landlord
obtains the insurance coverage, Landlord may elect such deductible as it deems
appropriate and shall be responsible for the deductible payment resulting from
an insured loss.

10.4     Waiver of Subrogation.

         Landlord and Tenant hereby release each other and their respective
agents and employees from any and all liability to each other or anyone claiming
through or under them by way of subrogation or otherwise for any loss or damage
to property caused by or resulting from risks insured against under the property
insurance for loss, damage or destruction by fire or other casualty carried by
the parties hereto and which was in force at the time of any such loss or
damage; provided, however, that this release shall be applicable only with
respect to loss or damage occurring during such time as the releaser's policies
of insurance contain a clause or endorsement to the effect that any such release
shall not adversely affect or impair such policies or prejudice the right of the
releaser to recover thereunder. Landlord and Tenant each agree that it will
require its property insurance carriers to include in its policy such a clause
or endorsement. Nothing contained in this Section 10.4 shall be deemed to
relieve either party from any duty imposed elsewhere in this Lease to repair,
restore and rebuild.

                 ARTICLE 11. LIABILITY AND INDEMNITY; INSURANCE

11.1     Mutual Indemnity.

         TENANT AGREES TO INDEMNIFY, DEFEND AND HOLD LANDLORD HARMLESS FROM ALL
CLAIMS, LIABILTIES, PENALTIES, FINES, JUDGMENTS, ACTIONS, CAUSES OF ACTION,
DAMAGES, LOSSES, EXPENSES AND COSTS ARISING (OR ALLEGED TO ARISE) FROM (A) THE
USE OR NON-USE OF THE LEASED PREMISES DURING THE TERM, (B) ANY BREACH OF
TENANT'S OBLIGATIONS UNDER THIS LEASE, (C) ANY

                                      -16-

<PAGE>

WILLFUL MISCONDUCT OR NEGLIGENT ACT OR OMISSION OF TENANT OR TENANT'S AGENTS,
EMPLOYEES, ASSIGNEES, SUBTENANTS, CONTRACTORS, CUSTOMERS OR INVITEES, OR (D) ANY
INJURY TO OR DEATH OF ANY PERSON OR PERSONS OR DAMAGE TO OR DESTRUCTION OF THE
PROPERTY OF ANY PERSON OR PERSONS OCCURRING IN OR ABOUT THE LEASED PREMISES, AND
TENANT ASSUMES RESPONSIBILITY FOR THE CONDITION OF THE LEASED PREMISES AND
AGREES TO GIVE LANDLORD WRITTEN NOTICE IN THE EVENT OF ANY DAMAGE, DEFECT OR
DISREPAIR THEREIN. TENANT ACKNOWLEDGES THAT THE COVENANTS OF TENANT CONTAINED IN
THIS LEASE RELATING TO INDEMNITY BY TENANT OF THE LANDLORD HAVE SERVED AS A
MATERIAL INDUCEMENT TO LANDLORD TO CONSUMMATE THE TRANSACTIONS CONTEMPLATED BY
THIS LEASE AND TENANT FURTHER ACKNOWLEDGES AND AGREES THAT BUT FOR THE
PROVISIONS OF THIS LEASE REGARDING INDEMNITY, LANDLORD WOULD NOT HAVE
CONSUMMATED THE TRANSACTIONS CONTEMPLATED BY THIS LEASE.

         LANDLORD AGREES TO INDEMNIFY, DEFEND AND HOLD TENANT HARMLESS FROM ALL
CLAIMS AND COSTS ARISING (OR ALLEGED TO ARISE) FROM: (A) BREACH OF LANDLORD'S
OBLIGATIONS UNDER THIS LEASE; OR (B) ANY WILLFUL MISCONDUCT OR NEGLIGENT ACT OR
OMISSION OF LANDLORD OR LANDLORD'S AGENTS, EMPLOYEES, ASSIGNEES, CONTRACTORS,
CUSTOMERS OR INVITEES. LANDLORD ACKNOWLEDGES THAT THE COVENANTS OF LANDLORD
CONTAINED IN THIS LEASE RELATING TO INDEMNITY BY LANDLORD OF THE TENANT HAVE
SERVED AS A MATERIAL INDUCEMENT TO TENANT TO CONSUMMATE THE TRANSACTIONS
CONTEMPLATED BY THIS LEASE AND LANDLORD FURTHER ACKNOWLEDGES AND AGREES THAT BUT
FOR THE PROVISIONS OF THIS LEASE REGARDING INDEMNITY, TENANT WOULD NOT HAVE
CONSUMMATED THE TRANSACTIONS CONTEMPLATED BY THIS LEASE.

         THE PROVISIONS OF THIS SECTION 11.1 SHALL SURVIVE THE EXPIRATION OR
EARLIER TERMINATION OF THIS LEASE. LANDLORD'S INDEMNITY OBLIGATIONS UNDER THIS
SECTION 11.1 WILL APPLY WITH RESPECT TO ITS ACTIONS OR OMISSIONS CONSTITUTING
SIMPLE NEGLIGENCE IN CONNECTION WITH PERFORMING ANY DUTY OR RESPONSIBILITY OF
LANDLORD UNDER THIS LEASE; BUT LANDLORD'S INDEMNITY OBLIGATIONS UNDER THIS
SECTION 11.1 WILL APPLY ONLY WITH RESPECT TO ITS ACTIONS OR OMISSIONS
CONSTITUTING GROSS NEGLIGENCE OR WILLFUL MISCONDUCT IN CONNECTION WITH ANY
ACTIONS TAKEN AS A RESULT OF OR IN CONNECTION WITH TENANT'S DEFAULT UNDER THIS
LEASE.

11.2     Tenant's Insurance.

         Tenant, in order to insure against the liabilities specified in this
Lease, shall at all times during the term of this Lease carry, at its own
expense, one or more policies of general public liability and property damage
insurance, issued by one or more insurance companies acceptable to Landlord,
with the following minimum coverages:

              (a) Worker's Compensation: Five Hundred Thousand and No/100
         Dollars ($500,000.00) or, if greater, the amount required by applicable
         Legal Requirements.

                                      -17-

<PAGE>

              (b) Commercial General Liability Insurance, including blanket,
         contractual liability, broadform property damage, personal injury,
         completed operations, products liability, and fire damage: Not less
         than One Million and No/100 Dollars ($1,000,000.00) Combined Single
         Limit for both bodily injury and property damage per occurrence.

              (c) Excess liability (umbrella) insurance of at least Four Million
         and No/100 Dollars ($4,000,000.00).

              (d) Fire and extended coverage insurance covering the full
         replacement cost of all of the Building and all other structures and
         improvements located on the Leased Premises and all of Tenant's
         improvements, personal property, and trade fixtures contained within
         the Leased Premises.

              (e) Insurance for the removal and replacement of plate glass in
         and around the Leased Premises.

              (f) Whenever Tenant shall be engaged in making any Alteration or
         Alterations, repairs or construction work of any kind ("Work"), Tenant
         or its contractor shall obtain worker's compensation insurance or other
         adequate insurance coverage covering all persons employed in connection
         with the Work, whether by Tenant, its contractors or subcontractors and
         with respect to whom death or bodily injury claims could be asserted
         against Tenant or Landlord, and Tenant shall obtain or cause its
         contractor to obtain completed value builder's risk insurance when the
         estimated cost of the Work in any one instance exceeds the sum of One
         Hundred Thousand and No/100 Dollars ($100,000.00).

              (g) Business interruption insurance in amounts sufficient to
         compensate Landlord for all Base Rent, Additional Rent and other
         amounts payable hereunder for a period of not less than three (3)
         months, the amount of such coverage to be adjusted annually to reflect
         the Base Rent, Additional Rent and other amounts payable during the
         succeeding three (3) month period.

         The insurance policy or policies shall protect Tenant and Landlord (and
Landlord's lender) as their interests may appear, naming Landlord and Landlord's
mortgagee as additional insureds, and shall provide that they may not be
canceled on less than thirty (30) days prior written notice to Landlord. Tenant
shall furnish Landlord with Certificates of Insurance evidencing all required
coverage. Should Tenant fail to carry such insurance and furnish Landlord with
such Certificates of Insurance after a request to do so, Landlord shall have the
right to obtain such insurance and collect the cost thereof from Tenant as
additional rent.

         Landlord may, at its option, elect to obtain all or any portion of the
insurance required to be obtained by Tenant pursuant to the terms of this Lease
(other than the insurance required under Section 11.2(a) above). If Landlord
exercises such option to obtain any such insurance, then Tenant shall pay all
premiums and other costs of all such insurance within ten (10) days after
request for payment thereof from Landlord (provided, however, that if the
premiums and other costs for such insurance obtained by Landlord exceed the
premiums and other costs Tenant would have paid for such insurance, as
established by Tenant to Landlord's reasonable satisfaction, then such excess
premiums shall be paid by Landlord). If Landlord has elected to provide
insurance as permitted by this paragraph, Landlord may, at any time, terminate
such election by providing thirty (30) days' prior written notice to Tenant, in
which case Tenant shall thereafter be obligated and required to provide all
insurance required pursuant to the terms of this Lease and to comply with the
provisions of this Lease regarding such insurance coverage.

                                      -18-

<PAGE>

           ARTICLE 12. DEFAULT, REMEDIES AND DETERMINATION OF DAMAGES

12.1     Default.

         The occurrence of any of the following, and the continuance thereof
after the expiration of any applicable cure periods set forth in this Section
12.1, shall be deemed an "Event of Default:"

              (a) Tenant shall fail to pay any Base Rent or Additional Rent
         within ten (10) days after written notice thereof from Landlord to
         Tenant, or Tenant shall fail to pay any Additional Rent within ten (10)
         days after written notice thereof from Landlord to Tenant.

              (b) Tenant shall fail to maintain or renew insurance as required
         by this Lease, within fifteen (15) days following written notification
         from Landlord that Landlord has received a written notice of
         cancellation or nonrenewal from the applicable insurance carrier; or
         Tenant shall fail to maintain insurance as required by this Lease
         within five (5) business days after written notice from Landlord to
         Tenant if such insurance has lapsed or expired.

              (c) Tenant shall fail to perform or observe any term, condition,
         covenant or obligation (other than the failure to pay Base Rent or
         Additional Rent or to maintain or renew insurance under this Lease,
         which are subject to subsections (a) and (b) of this Section 12.1) as
         required under this Lease for a period of thirty (30) days after
         written notice thereof from Landlord; provided, however, that if the
         nature of Tenant's default is such that more than thirty (30) days are
         reasonably required to cure, then such thirty (30) day period shall be
         extended for a reasonable time if Tenant commences such performance
         within said thirty (30) day period and thereafter diligently completes
         the required action within a reasonable time, but not to exceed a
         period of one hundred eighty (180) days after notice thereof from
         Landlord; provided, that Landlord acknowledges in making a
         determination that an Event of Default has occurred under this
         subsection (c), to the extent that Landlord exercises discretion in
         making such determination, it shall exercise such discretion in a
         commercially reasonable manner.

              (d) All or substantially all of Tenant's assets in the Leased
         Premises or Tenant's interest in this Lease are attached or levied
         under execution (and Tenant does not discharge the same within sixty
         (60) days thereafter); a petition in bankruptcy, insolvency, or for
         reorganization or arrangement is filed by or against Tenant or any
         guarantor of Tenant's obligations under this Lease (and Tenant or such
         guarantor fails to secure a discharge thereof within sixty (60) days
         thereafter); Tenant or any guarantor of Tenant's obligations under this
         Lease shall be insolvent and unable to pay its debts as they become
         due; Tenant or any guarantor of Tenant's obligations under this Lease
         makes a general assignment for the benefit of creditors; Tenant or any
         guarantor of Tenant's obligations under this Lease takes the benefit of
         any insolvency action or law; the appointment of a receiver or trustee
         in bankruptcy for Tenant or any guarantor of Tenant's obligations under
         this Lease or any of their respective assets if such receivership has
         not been vacated or set aside within sixty (60) days thereafter;
         dissolution or other termination of Tenant's or any guarantor of
         Tenant's obligations under this Lease corporate charter if Tenant or
         such guarantor is a corporation.

12.2     Tenant Default and Landlord Remedies.

         Upon the occurrence of any Event of Default, Landlord shall have the
following rights and remedies, in addition to those allowed by law, any one or
more of which may be exercised without further notice to or demand upon Tenant:

                                      -19-

<PAGE>

              (a) in accordance with applicable laws, Landlord may reenter the
         Leased Premises and cure any default of Tenant, and Tenant shall
         reimburse Landlord within ten (10) days after written notice as
         Additional Rent for any costs and expenses which Landlord thereby
         incurs.

              (b) Landlord may terminate this Lease or, without terminating this
         Lease, terminate Tenant's right to possession of the Leased Premises as
         of the date of such default, and thereafter (i) neither Tenant nor any
         person claiming under or through Tenant shall be entitled to possession
         of the Leased Premises, and Tenant shall immediately surrender the
         Leased Premises to Landlord; and (ii) in accordance with applicable
         laws, Landlord may reenter the Leased Premises and dispossess Tenant
         and any other occupants of the Leased Premises by any lawful means and
         may remove and dispose of their effects, without prejudice to any other
         remedy which Landlord may have. Upon the termination of this Lease,
         Landlord may declare the discounted present value (as reasonably
         determined by Landlord using a discount rate of five percent (5%) per
         annum) of all Base Rent and Additional Rent which would have been due
         under this Lease for the balance of the Lease Term to be immediately
         due and payable, whereupon Tenant shall be obligated to pay the same to
         Landlord, together with all loss or damage which Landlord may sustain
         by reason of Tenant's default ("Default Damages"), which shall include
         without limitation expenses of preparing the Leased Premises for
         re-letting, demolition, repairs, tenant finish improvements, and
         brokers' and attorneys' fees, it being expressly understood and agreed
         that the liabilities and remedies specified in this subsection (b)
         shall survive the termination of this Lease.

              (c) In accordance with applicable laws, Landlord may, without
         terminating this Lease, re-enter the Leased Premises and re-let all or
         any part thereof for a term different from that which would otherwise
         have constituted the balance of the Lease Term and for rent and on
         terms and conditions different from those contained herein, whereupon
         Tenant shall be obligated to pay to Landlord as liquidated damages the
         difference between the Base Rent and Additional Rent provided for
         herein and that provided for in any lease covering a subsequent
         re-letting of the Leased Premises, for the period which would otherwise
         have constituted the balance of the Lease Term, together with all of
         Landlord's Default Damages.

              (d) Landlord may sue for injunctive relief or to recover damages
         for any loss resulting from the breach including, but not limited to,
         Base Rent and Additional Rent payable under this Lease.

              (e) Landlord may exercise any other right or remedy now or
         hereafter existing at law or in equity.

              (f) Upon and after any termination of this Lease by Landlord,
         Landlord shall use commercially reasonable efforts to relet the Leased
         Premises or any portion thereof to the extent required by law to any
         person, firm or corporation other than the Tenant for a fair market
         rent and upon such terms and conditions as are commercially reasonable.

              (g) Notwithstanding the foregoing, if, and only if, (i) one or
         more Events of Default specified in subsection (d) of Section 12.1
         (herein referred to as the "Limited Remedy Defaults") has occurred and
         is continuing and has not been waived by Landlord, and (ii) no Event of
         Default specified in subsection (a), (b) or (c) of Section 12.1 (herein
         referred to as the "Unlimited Remedy Defaults") has occurred, then the
         present value as of the Occurrence Date (as hereinafter defined),
         discounted from the date of payment at the annual rate of seven percent
         (7%) per annum, of the aggregate amount Tenant pays and shall be
         required to pay to Landlord from and

                                      -20-

<PAGE>

         after the date of the occurrence of such Limited Remedy Default (the
         "Occurrence Date") with respect to Base Rent and Additional Rent
         (subject to the following provisos), shall be limited to the present
         value as of the Occurrence Date, discounted at the annual rate of seven
         percent (7%), of all Base Rent reserved hereunder for the unexpired
         portion (after the Occurrence Date) of the Term devised herein as if
         this Lease had not expired or been terminated. In addition to the
         above, the Tenant shall be obligated for (i) any amounts of Additional
         Rent which are due and payable or have accrued under this Lease through
         the Occurrence Date, and (ii) any amounts of Additional Rent which are
         due and payable or have accrued under this Lease after the Occurrence
         Date while the Tenant remains in possession of the Leased Premises
         after any Limited Remedy Default that relate to Impositions, insurance,
         utilities, repairs, maintenance, environmental maintenance, remediation
         and compliance and other routine and customary costs and expenses of
         operating and maintaining the Leased Premises. Notwithstanding the
         foregoing, if the Tenant remains in possession of the Leased Premises
         and assumes, ratifies or affirms this Lease during any pending
         bankruptcy or other event described in subsection 12.1(d), then Tenant
         shall be obligated to pay all amounts of Base Rent and Additional Rent
         which become due and payable under this Lease without limitation by
         this subsection (g). Nothing contained in this subsection 12.2(g) shall
         limit any amounts payable by Tenant with respect to Base Rent or
         Additional Rent if any Unlimited Remedy Default has occurred.

12.3     Landlord Default and Tenant Remedies.

         Subject to the terms and provisions hereinbelow, and in addition to any
other remedy expressly available to Tenant pursuant to this Lease or at law or
in equity, should Landlord fail to perform any term or covenant under this Lease
(each and any such failure being herein sometimes referred to as a "Landlord
Default") and if any such Landlord Default shall not be cured and shall
accordingly be continuing thirty (30) days following written notice by certified
mail by Tenant to Landlord of such Landlord Default (in the event that such
Landlord Default consists of a breach or failure by Landlord to pay any monetary
amount due and payable by Landlord to Tenant), or sixty (60) days (provided,
however, that if Landlord shall commence curing of such default and such default
cannot be cured within said sixty (60) day period, Landlord shall be given up to
one hundred eighty (180) days following original written notice to cure said
default) following written notice by certified mail by Tenant to Landlord of
such Landlord Default (in the event such default consists of a breach or failure
by Landlord to comply with any obligation of Landlord other than one involving
the payment of a monetary amount payable by Landlord to Tenant hereunder), then,
in either such event, Tenant shall have the option (at Tenant's sole discretion)
of remedying such Landlord Default and, in connection therewith, incurring
expenses for the account of Landlord, and any and all such sums expended or
obligations incurred by Tenant in connection therewith shall be paid by Landlord
to Tenant upon demand (together with interest thereon at the Default Rate from
the date of any such expenditure by Tenant until the date of repayment thereof
by Landlord to Tenant). Notwithstanding the foregoing, in all events Tenant
shall have the right to remedy any Landlord Default without prior notice in the
event of an Emergency (so long as Tenant gives notice within a reasonable period
of time thereafter) and invoice Landlord in the manner set forth in the
preceding sentences of this Section.

12.4     Attorney's Fees.

         In the event that either party institutes any action or proceeding to
enforce any provision of this Lease and prevails in such action then, in such
event, the prevailing party in such action will be entitled to all reasonable
costs incurred by such party including reasonable attorney's fees.

                                      -21-

<PAGE>

                             ARTICLE 13. NON-WAIVER

         Neither acceptance of rent by Landlord nor failure by Landlord to
complain of any action, non-action or default of Tenant shall constitute a
waiver as to any breach of any covenant or condition of Tenant contained herein
nor a waiver of any of Landlord's rights hereunder. Waiver by Landlord of any
right for any default of Tenant shall not constitute a waiver of any right for
either a prior or subsequent default of the same obligation or for any prior or
subsequent default of any other obligation. No right or remedy of Landlord
hereunder or covenant, duty or obligation of Tenant hereunder shall be deemed
waived by Landlord unless such waiver be in writing, signed by Landlord.

                            ARTICLE 14. HOLDING OVER

         If Tenant should remain in possession of the Leased Premises after the
expiration of the Lease Term or termination of this Lease for any other reason,
without the execution of a new Lease, then Tenant shall be deemed to be
occupying the Leased Premises as a Tenant from month to month at sufferance,
subject to all the covenants and obligations of this Lease, except that as
liquidated damages by reason of such holding over, the amounts payable by Tenant
under this Lease shall be increased such that the Base Rent payable during such
period shall be equal to one hundred twenty-five percent (125%) of the monthly
Base Rent in effect as of the expiration of the Lease Term or earlier date of
termination.

                      ARTICLE 15. LANDLORD-TENANT RELATION

         The relation created by this Lease contract is that of Landlord and
Tenant. No provision of this Lease shall be construed in such a way as to
constitute Landlord and Tenant joint venturers or co-partners or to make either
party the agent of the other party or to make either party liable for the debts
of the other party.

                           ARTICLE 16. EMINENT DOMAIN

16.1     Effect of Taking.

         If there shall be taken (the term "taken" including a voluntary
conveyance in lieu thereof) during the Term of this Lease all of the Leased
Premises (other than a temporary taking), by any authority having the power of
eminent domain, then and in that event, the term of this Lease shall cease and
terminate, and the date of such termination shall be, the date upon which
possession is taken by such authority. If less than all but a substantial and
material portion of the Leased Premises should be so taken which, in the sole
but reasonable judgment of Tenant, renders the Leased Premises in such a
condition that it can no longer be used for its intended uses as set forth in
Section 1.1(n) (and Tenant must deliver notice to Landlord of such determination
within thirty (30) days after such portion of the Leased Premises is taken),
either Landlord or Tenant may elect to terminate this Lease or to continue this
Lease in effect, but if neither Landlord nor Tenant elects to terminate this
Lease within sixty (60) days after such taking, this Lease shall continue in
effect and if the portion of the Leased Premises so taken diminishes the
commercial value of the right to use the Leased Premises for the purposes
described in Section 1.1(n) of this Lease, then a portion of the Base Rent shall
be reduced by Landlord to the extent necessary to reflect such decreased value,
but in no event shall the Base Rent be reduced by a proportion greater than a
fraction equal to: (i) the square feet of any portion of the Building so taken
divided by (ii) the total square feet of

                                      -22-

<PAGE>

the Building. When any such reduction in Base Rent has been computed by
Landlord, Landlord shall notify Tenant as to the amount of such Base Rent after
the reduction and such sum shall become the Base Rent hereunder and shall be due
and payable by Tenant to Landlord in accordance with the provisions of Article 4
relating to the time and manner of Tenant's payment of Base Rent. At the request
of Landlord, Tenant will execute a letter or other memorandum setting forth the
amount of such Base Rent payable by Tenant. In the event that Landlord has
elected to continue this Lease in effect, then neither the restoration work, if
any, by Landlord with respect to the Leased Premises shall constitute an
eviction or disturbance of Tenant's use and possession of the Leased Premises or
a breach by Landlord of any of its obligations hereunder or render Landlord
liable for damages or entitle Tenant to be relieved from any of its obligations
hereunder (with the exception of the aforesaid proportionate reduction in Base
Rent) or grant Tenant any right of off-set or recoupment. In the event that any
condemnation proceeds, whether by way of compensation or damages, are collected
by any party holding a lien on Landlord's interest in the Leased Premises,
whether or not the payment to such lienholder is with the approval of Landlord,
then Landlord shall have the right to terminate this Lease within 60 days
following such taking. If less than a substantial and material portion of the
Leased Premises should be so taken, then neither party may terminate this Lease
as a result thereof; provided, however, that if less than a substantial and
material portion of the Leased Premises is taken and said condemned portion
detrimentally affects Tenant's access to the Leased Premises and/or the ability
of Tenant's delivery trucks and/or vehicles to properly access the Leased
Premises for its intended use as set forth in Section 1.1(n) hereof to a
material extent, then Landlord and Tenant shall mutually agree upon a fair and
reasonable reduction in Base Rent to the extent necessary to reflect such
decreased value, within thirty (30) days following the date of such taking. In
no event shall Base Rent be reduced by an amount greater than the amount of the
net condemnation award paid to Landlord amortized over the remaining Term of
this Lease on a straight line basis.

16.2     Condemnation Awards.

         All sums awarded or agreed upon between Landlord and the condemning
authority for the taking of the fee or the leasehold interest, whether as
damages or as compensation, will be the property of Landlord except to the
extent any such award attributes value to Tenant's personal property or
relocation expenses. Tenant hereby assigns to Landlord all proceeds, whether by
way of compensation or damages, payable to Tenant for the Leasehold interest by
reason of such taking; provided, however, Tenant shall be entitled to an award
expressly made to Tenant by any Governmental Authority for the cost of or the
removal of Tenant's equipment, trade fixtures and other moving expenses.

ARTICLE 17.  LANDLORD'S MORTGAGEE

17.1     Subordination/Non-Disturbance.

         Tenant shall, upon request of the holder of a mortgage or deed of trust
in the nature of a mortgage, which holder is a commercial or institutional
lender ("Mortgagee") subordinate any interest which it has by virtue of this
Lease, and any extensions and renewals thereof to any mortgages or deeds of
trust placed upon the Leased Premises by Landlord, if and only if such Mortgagee
shall execute, deliver and record in the appropriate registry of deeds a
Subordination, Non-disturbance and Attornment Agreement in the form attached
hereto as Exhibit "E", or in such other form and content generally used in
commercial loan transactions and approved by Tenant, such approval not to be
unreasonably withheld. Such agreements shall provide by their terms that
notwithstanding any foreclosure of such mortgage or deed of trust, Tenant may
continue to occupy the Leased Premises during the term of this Lease or any
extensions or renewals thereof under the same terms, conditions and provisions
of this Lease unless Tenant shall be in default beyond any applicable grace
periods provided for herein. Landlord shall at or prior to the Commencement
Date, secure from Landlord's present mortgagee of the Premises a non-

                                      -23-

<PAGE>

disturbance agreement in the form attached hereto as Exhibit "E", or in such
other form as is reasonably acceptable to Tenant.

17.2     Estoppel Certificate.

         Landlord and Tenant shall execute and deliver to each other (or to such
other parties as the requesting party may reasonably designate), at such time or
times as either Landlord or Tenant may request, a certificate stating:

              (a) Whether or not the Lease is in full force and effect;

              (b) Whether or not the Lease has been modified or amended in any
         respect, and submitting copies of such modifications or amendments, if
         any;

              (c) Whether or not there are any existing defaults under this
         Lease to the knowledge of the party executing the certificate, and
         specifying the nature of such defaults, if any; and

              (d) Such other information as may be reasonably requested.

         The aforesaid certificate(s) shall be delivered to Landlord or Tenant,
as the case may be, promptly upon receipt of a written request therefor, but in
no event more than twenty (20) days following receipt of such request.

17.3     Attornment.

         By its execution hereof, Tenant expressly promises, covenants and
agrees that in the event any person, firm, corporation or other party shall
succeed to all or any part of Landlord's interest in the Leased Premises or any
part thereof, whether by purchase, foreclosure, deed in lieu of foreclosure,
power of sale, termination of Lease or otherwise, that Tenant shall attorn to
such successor in interest, and if requested or required by Landlord or such
successor in interest, Tenant shall, upon such demand, immediately attorn to
such successor in interest and shall execute such written agreement and in
confirmation of such attornment as Landlord or such successor in interest shall
request.

                               ARTICLE 18. NOTICE

         Any notice which may or shall be given under the terms of this Lease
shall be in writing and shall be either delivered to the Notice Address of
either Landlord or Tenant, by hand, overnight delivery or sent by United States
Registered or Certified Mail, adequate postage prepaid. So long as Tenant is
occupying the Leased Premises, the Notice Address for Tenant shall be the
address set forth in Section 1.1(d) above. Either party's address may be changed
from time to time by such party by giving notice as provided above. No change of
address of either party shall be binding on the other party until notice of such
change of address is given as herein provided. A post office receipt for
registration of such notice or signed return receipt shall be conclusive that
such notice was delivered in due course of mail if mailed as provided above. For
purposes of the calculation of various time periods referred to herein, notice
delivered by hand shall be deemed received when delivered to the place for
giving notice to a party referred to above; notice mailed in the manner provided
above shall be deemed completed upon the earlier to occur of (i) actual receipt
as indicated on the signed return receipt, or (ii) three (3) days after posting
as herein provided. Finally, any written notice addressed as provided
hereinabove and actually

                                      -24-

<PAGE>

received by the addressee, shall constitute sufficient notice for all purposes
under this Lease. If any Lender shall have advised Tenant that it is the holder
of a mortgage or deed of trust secured by the Leased Premises and states in said
notice its address for the receipt of notices, then simultaneously with the
giving of any notice by Tenant to Landlord, Tenant shall send a copy of such
notice to such lender in the manner aforesaid. Any notice may be given on behalf
of any party by its counsel.

                           ARTICLE 19. TENANT'S SIGNS

         Tenant shall be responsible for the costs and repair of building signs,
if any, unless any damage to the building signs is caused by the acts, omissions
or misconduct of Landlord, its agents, employees or invitees. Landlord consents
to the current signs on the Leased Premises; however, sign plans for any
alterations to existing signs or contemplated signs shall be prepared by Tenant
and submitted to Landlord for Landlord's prior written approval, which approval
shall be exercised in Landlord's reasonable judgment and will not be
unreasonably delayed, conditioned or withheld so long as such signs will comply
with all applicable Legal Requirements.

ARTICLE 20.  MISCELLANEOUS

20.1     Captions.

         With respect to terminology in this Lease, each number (singular or
plural) shall include all numbers, and each gender (male, female or neuter)
shall include all genders. The titles of the Articles and Sections in this Lease
shall have no effect and shall neither limit nor amplify the provisions of the
Lease itself. The words "hereof," "herein," "hereunder," "hereinafter" and the
like refer to this entire instrument, not just to the specific Article, section
or paragraph in which such words appear. As used herein, the term "including"
shall mean "including but not limited to".

20.2     Severability.

         If any provision of this Lease shall ever be held to be invalid or
unenforceable, such invalidity or unenforceability shall not affect any other
provisions of the Lease, but such other provisions shall continue in full force
and effect.

20.3     Successors and Assigns.

         This Lease shall be binding upon and shall accrue to the benefit of
Landlord, its successors and assigns, and Tenant, its successors and assigns (or
heirs, executors, administrators and assigns, as the case may be); however, this
clause does not constitute a consent by Landlord to any assignment by Tenant,
but instead refers only to those instances in which an assignment by Tenant is
hereafter made in strict compliance with Article 7 above. Landlord may convey
the Leased Premises and assign its interest in this Lease without the consent of
Tenant.

20.4     No Constructive Eviction.

         In any circumstances where Landlord is permitted to enter upon the
Leased Premises during the Term of the Lease, whether for the purpose of curing
any default of Tenant, repairing damage resulting from fire or other casualty or
an eminent domain taking or is otherwise permitted hereunder to go upon the
Leased Premises and, except and as to the extent expressly provided under
Section 8.4, no such entry shall constitute an eviction or disturbance of
Tenant's use and possession of the Leased Premises or a

                                      -25-

<PAGE>

breach by Landlord of any of its obligations hereunder or render Landlord liable
for damages for loss of business or otherwise (unless such damages are caused by
the gross negligence or willful misconduct of the Landlord, its agents,
employees or invitees) or entitle Tenant to be relieved from any of its
obligations hereunder or grant Tenant any right of set-off or recoupment or
other remedy. In connection with any such entry incident to performance of
repairs, replacements, maintenance or construction, all of the aforesaid
provisions shall be applicable notwithstanding that Landlord may elect to take
building materials in, to or upon the Leased Premises that may be required or
utilized in connection with such entry by Landlord; provided however, that so
long as Tenant is not in default of its obligations under this Lease, such entry
shall be made by Landlord in such a manner as is calculated to minimize the
effect upon Tenant's business.

20.5     Time of the Essence.

         In all instances where Tenant is required hereunder to pay any sum or
do any act at a particular indicated time or within an indicated period, it is
understood that time is of the essence.

20.6     Location of Performance.

         All monetary obligations of Landlord and Tenant (including, without
limitation, any monetary obligation of Landlord or Tenant for damages for any
breach of the respective covenants, duties or obligations of Landlord or Tenant
hereunder) and this Lease shall be governed by the laws of the state in which
the Leased Premises are located.

20.7     Entire Agreement; Amendments.

         This instrument (including all Exhibits) constitutes the entire
agreement between Landlord and Tenant; no prior written or prior or
contemporaneous oral promises or representations shall be binding. This Lease
shall not be amended, changed or extended except by written instrument signed by
both parties hereto.

20.8     Force Majeure.

         If either party hereto shall be delayed or hindered in or prevented
from the performance of any obligation required hereunder by reason of strikes,
lock-outs, labor troubles, inability to procure materials, failure of power,
restrictive governmental laws or regulations, riots, acts of terrorism,
insurrection, war, military or usurped power, sabotage, unusually severe
weather, fire or other casualty or other reason (but excluding inadequacy of
insurance proceeds, financial inability or the lack of suitable financing) of a
like nature beyond the reasonable control of the party delayed in performing its
obligations under this Lease ("force majeure"), the time for performance of such
obligation shall be extended for the period of the delay. The provisions of the
preceding sentence however shall not excuse Tenant from the prompt and timely
payment of the Base Rent or Additional Rent when due under this Lease.

20.9     Quiet Enjoyment.

         Tenant, upon paying the Base Rent, Additional Rent and other sums due
under this Lease, and performing all of the terms and covenants of this Lease on
Tenant's part to be kept, observed, and performed, shall quietly have and enjoy
the Leased Premises during the Term of this Lease without interference from
anyone claiming by, through or under Landlord; subject, however, to Landlord's
rights of entry in Section 8.4 or any other provision of this Lease. Landlord
agrees that Tenant shall have

                                      -26-

<PAGE>

continuous, peaceful, uninterrupted and exclusive possession and quiet enjoyment
of the Leased Premises during the Term of the Lease.

20.10    Title.

         Landlord hereby represents that Landlord has the right and authority to
enter into this Lease. Landlord further represents that Landlord and those
signatories executing this Lease on behalf of Landlord have full power and
authority to execute this Lease.

20.11    Compliance with Laws.

         Tenant, at its own expense, will comply with all applicable federal,
state, municipal and other laws, ordinances, rules and regulations and other
Legal Requirements applicable to Tenant's use of the Leased Premises and the
business conducted therein by Tenant. Landlord, at its own expense, will comply
with all applicable federal, state, municipal and other laws, ordinances, rules
and regulations and other Legal Requirements (excluding matters included within
items (ii) and (iii) of the definition of Legal Requirements) generally
applicable to the roof, foundation, structural components, exterior walls,
exterior doors and windows (excluding glass), walks, parking areas, driveways,
and other exterior areas (including paving), exterior plumbing lines (including
water lines and gas lines) of the Leased Premises; provided, however, that
Landlord shall have no obligation to cause the Leased Premises to comply with
any Legal Requirements to the extent the Leased Premises were not in compliance
with such Legal Requirements on the date hereof unless Landlord is ordered to do
so by a Governmental Authority with jurisdiction over such matter. Tenant, at
its own expense, will comply with, and will cause the Leased Premises to comply
with, all applicable federal, state, municipal and other laws, ordinances, rules
and regulations and other Legal Requirements applicable to the Building, the
Leased Premises and any common areas, including, but not limited to, all fire,
health, safety, environmental and other local codes and the American With
Disabilities Act of 1990, as amended (the "ADA"), and the regulations
promulgated thereunder. During the Term of the Lease, Tenant will be responsible
for any upgrades or modifications to the exterior, public or common areas of the
Building or the property required pursuant to changes in the ADA and applicable
regulations thereunder, if applicable to Tenant's use of the Leased Premises.
During the Term of the Lease, Landlord will be responsible for any upgrades or
modifications to the exterior, public or common areas of the Building or the
Leased Premises required pursuant to changes in the ADA and applicable
regulations thereunder, if generally applicable to the portions of the Leased
Premises which Landlord is obligated to repair under Section 8.1 hereof. Tenant
will be responsible for any ADA upgrades to the interior of the Leased Premises
with respect to improvements or alterations made by Tenant to the Premises
during the Term of this Lease.

20.12 Statement of Intent. It is Tenant's and Landlord's intent that this Lease
will qualify as an operating lease under the applicable financial and regulatory
accounting rules and guidelines. In addition, Landlord shall not be consolidated
into Tenant under the applicable tax, financial and accounting rules and
regulations.

20.13 Permitted Encumbrances. Tenant agrees that with respect to the Permitted
Encumbrances and any covenants, restrictions or agreements affecting the Leased
Premises which are hereafter created by or consented to (in writing) by Tenant,
Tenant shall observe, perform and comply with, and cause the Leased Premises to
comply with, and carry out the provisions thereof required therein to be
observed and performed by the owner of the Leased Premises thereunder, and shall
pay all actual and reasonable costs and expenses required to be paid by the
owner of the Leased Premises thereunder.

                                      -27-

<PAGE>

20.14 No Redemption. Tenant hereby waives and surrenders for itself and all
those claiming under it, including creditors of all kinds, any right and
privilege which it or any of them may have under any present or future law to
redeem any of the Leased Premises or to have a continuance of this Lease after
termination of this Lease or of Tenant's right of occupancy or possession
pursuant to any court order or any provision hereof.

20.15 No Merger of Title. There shall be no merger of this Lease nor of the
leasehold estate created by this Lease with the fee estate in or ownership of
any of the Leased Premises by reason of the fact that the same person,
corporation, firm or other entity may acquire or hold or own, directly or
indirectly, (a) this Lease or the leasehold estate created by this Lease or any
interest in this Lease or in such leasehold estate and (b) the fee estate or
ownership of any of the Leased Premises or any interest in such fee estate or
ownership. No such merger shall occur unless and until all persons,
corporations, firms and other entities having any interest in (i) this Lease or
the leasehold estate created by this Lease and (ii) the fee estate in or
ownership of the Leased Premises or any part thereof sought to be merged shall
join in a written instrument effecting such merger and shall duly record the
same.

20.16    Special Provisions Regarding Landlord.

              (a) Anything contained herein to the contrary notwithstanding, any
         claim based on or in respect of any liability of Landlord under this
         Lease shall be enforced only against the Landlord's interest in the
         Leased Premises and shall not be enforced against the Landlord
         individually or personally.

              (b) The term "Landlord" as used in this Lease so far as covenants
         or obligations on the part of Landlord are concerned, shall be limited
         to mean and include only the owner or owners of the Leased Premises or
         holder of the Mortgage in possession at the time in question of the
         Leased Premises and so long as the assignee or transferee of Landlord
         shall expressly assume (in writing) all duties and obligations of
         Landlord thereafter accruing under this Lease, in the event of any
         transfer or transfers of the title of the Leased Premises, the Landlord
         herein named (and in case of any subsequent transfers or conveyances,
         the then grantor) shall be automatically freed and relieved from and
         after the date of such transfer and conveyance of all personal
         liability as respects the performance of any covenants or obligations
         on the part of Landlord contained in this Lease thereafter to be
         performed, except to the extent of any preexisting obligation not
         expressly assumed by the subsequent assignee or purchaser.

20.17 Multiple Counterparts. To facilitate execution, this Lease may be executed
in as many counterparts as may be convenient or required. It shall not be
necessary that the signature or acknowledgment of, or on behalf of, each party,
or that the signature of all persons required to bind any party, or the
acknowledgment of such party, appear on each counterpart. All counterparts shall
collectively constitute a single instrument. It shall not be necessary in making
proof of this Lease to produce or account for more than a single counterpart
containing the respective signatures of, or on behalf of, and the respective
acknowledgments of, each of the parties hereto. Any signature or acknowledgment
page to any counterpart may be detached from such counterpart without impairing
the legal effect of the signatures or acknowledgments thereon and thereafter
attached to another counterpart identical thereto except having attached to it
additional signature or acknowledgment pages.

20.18    Maintenance Arbitration.

                  (a) In the event that Tenant has made a request or demand to
         Landlord that Landlord perform any specific maintenance or repair
         obligations under Section 8.1(a) hereof (the "Subject

                                      -28-

<PAGE>

         Repairs") and Landlord disputes whether it is obligated to make the
         Subject Repairs under this Lease, then Tenant may make a written
         demand for arbitration under this Section 20.18, and such dispute
         between Landlord and Tenant shall be settled by arbitration as provided
         in this Section 20.18; provided, that the only issues to be the subject
         of such arbitration are whether the items, manner and extent of the
         Subject Repairs are required to be made by Landlord. Any demand for
         arbitration under this Section 20.18 must be made, if at all, not later
         than fifteen (15) days after Landlord disputes its obligation to make
         the Subject Repairs, or such right of arbitration shall be forever
         barred with respect to such Subject Repairs, and Landlord shall not be
         obligated to make such Subject Repairs.

              (b) Any disputes to be resolved under this Section 20.18 shall be
         settled by American Arbitration Association under its Commercial
         Arbitration Rules then pertaining. The parties also agree that the
         American Arbitration Association Optional Rules for Emergency Measures
         of Protection then pertaining shall apply to the proceedings. The
         parties hereby agree that any dispute under this Section 20.18 shall be
         submitted to one (1) arbitrator, selected by the parties from a list of
         qualified American Arbitration Association arbitrators in the Houston
         (Harris County) Texas area. The decision of the arbitrator shall be
         binding, final and conclusive on the parties and judgment on the award
         rendered by the arbitrator may be entered in any court having
         jurisdiction thereof.

              (c) Notwithstanding anything to the contrary herein, in the
         Commercial Arbitration Rules of the American Arbitration Association,
         or in the Optional Rules for Emergency Measures of Protection, (i) all
         fees, costs and expenses (including Landlord's reasonable attorney's
         fees and expenses) arising in connection with any arbitration
         proceeding pursuant to this Section 20.18 shall be borne and paid
         solely by the party prevailing in such arbitration proceeding, and (ii)
         under no circumstances shall Landlord or Tenant be required to provide
         any security or bond in connection with any such arbitration
         proceeding.

              (d) If in an arbitration proceeding under this Section 20.18, the
         arbitrator orders that the Landlord is required to make the Subject
         Repairs which are the subject of such arbitration proceeding, then
         Landlord shall be obligated to make such repairs under and in
         accordance with Section 8.1(a) of this Lease. If Landlord thereafter
         fails to make such Subject Repairs in accordance with Section 8.1(a)
         and Tenant exercises its right under Section 8.1(b) to cause such
         Subject Repairs to be made, then if Landlord fails to reimburse the
         Tenant for the cost of such Subject Repairs as required by Section
         8.1(b) within ten (10) days after the date Landlord receives the
         statement from Tenant setting forth the amount due, then Tenant may, at
         its option, offset such amounts against subsequent Base Rent due under
         this Lease.

              (e) The provisions of this Section 20.18 shall apply only with
         respect to demands or requests for Landlord to perform its repair and
         maintenance obligations under Section 8.1(a) of this Lease, and shall
         not apply with respect to any other matters hereunder.

            [THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

                                      -29-

<PAGE>

         EXECUTED in multiple counterparts, each of which shall have the force
and effect of an original, on the day and year first written above.

                                    LANDLORD:

                                    SOUTH BEND PARTNERS, L.P.,
                                    a Texas limited partnership

                                    By: South Bend Partners GP, L.L.C.,
                                        a Texas limited liability company,
                                        its general partner

                                    By:_____________________________
                                    Name:___________________________
                                    Title:__________________________

                                      -30-

<PAGE>

                                    TENANT:

                                    EGL EAGLE GLOBAL LOGISTICS, LP,
                                    a Delaware limited partnership

                                    By: EGL Management, LLC,
                                        a Delaware limited liability company

                                    By:_____________________________
                                    Name:___________________________
                                    Title:__________________________

                                      -31-

<PAGE>
                                   EXHIBIT "A"

                                 LEASED PREMISES

A part of the Southeast Quarter of Section 18, Township 38 North, Range 2 East,
City of South Bend, German Township, St. Joseph County, Indiana, being more
particularly described as follows:

      Lot Numbered Eighteen A (18A) as shown on the recorded Plat of U.S. 31
      Industrial Park, Section Three as recorded March 18, 1999 in Instrument
      No. 9912358 in the Office of Recorder of said County, subject to all
      easements and rights-of-way of record.

<PAGE>

                                   EXHIBIT "B"

                              INTENTIONALLY OMITTED

<PAGE>

                                   EXHIBIT "C"

                              INTENTIONALLY OMITTED

<PAGE>

                                   EXHIBIT "D"

                             PERMITTED ENCUMBRANCES

1. Taxes for the year 2002 payable in 2003 are a lien not yet due and payable.

2. Twenty-five foot building line back from and parallel with Ameritech and an
   easement for public utilities and drainage in, upon and over the East 30
   feet, South 15 feet and the Westerly 15 feet of said lot(s), all as shown by
   broken lines on the map of the recorded plat, recorded March 18, 1999 as
   Document Number 9912358 in the Office of the Recorder of St. Joseph County,
   Indiana.

3. Declaration of Protective and Restrictive Covenants for the US 31 Industrial
   Park recorded December 11, 1998 as Document Number 9864426 in the Office of
   the Recorder of St. Joseph County, Indiana.

4. Certificate of Completion recorded August 7, 2001 as Document Number 0138669
   in the Office of the Recorder of St. Joseph County, Indiana.

<PAGE>

                                   EXHIBIT "E"

                                     FORM OF
             SUBORDINATION, NON-DISTURBANCE AND ATTORNMENT AGREEMENT<PAGE>
                                                                  EXHIBIT 10.26

                          PURCHASE AND SALE AGREEMENT

                  THIS AGREEMENT (hereinafter sometimes called the "Agreement")
by and between EGL EAGLE GLOBAL LOGISTICS, L.P. a Delaware limited partnership
(hereinafter called "Seller"), and MCMILLAN INVESTMENT COMPANY, LTD., a Texas
limited liability company (hereinafter called "Buyer"), is entered into as of
the Effective Date (as herein defined).

                              W I T N E S S E T H:

                                  1. PROPERTY

                  Subject to the terms and provisions of this Agreement, Seller
hereby agrees to sell and convey to Buyer, and Buyer agrees to purchase from
Seller, the following:

                  (a) That certain tract or parcel of land described in Exhibit
         "A" attached hereto ----------- and incorporated by reference herein
         for all purposes (hereinafter called the "Land") consisting of
         approximately 18.136 acres located at the southeast intersection of
         N.W. 72nd Avenue and N.W. 58th Street in Dade County, Florida;

                  (b) All buildings, structures, and improvements, if any,
         situated on the Land and all fixtures and other property affixed
         thereto (hereinafter called the "Improvements");

                  (c) All the rights and appurtenances pertaining to the Land
         and Improvements, including any mineral rights, rights under any
         reciprocal easement agreements or other recorded or unrecorded
         instruments benefiting the Property (as hereinafter defined), any
         right, title, or interest of Seller in and to easements, adjacent or
         contiguous tracts, strips, gores, streets, alleys, or rights-of-way,
         any reversionary rights attributable to the Land, any condemnation
         awards made or to be made in lieu thereof, and any awards for damage
         to the Land by reason of a change of grade of any highway, street,
         road, or avenue (hereinafter called the "Appurtenances"); and

                  (d) All of the following to the extent they relate to or
         arise out of the ownership or use of the Land and Improvements: (i)
         contracts or agreements such as maintenance, service, or utility
         contracts (hereinafter called the "Operating Agreements"), to the
         extent that Buyer elects to take assignment thereof, (ii) warranties,
         guaranties, indemnities, and claims, (iii) development rights,
         governmental approvals, licenses, permits, or similar documents, (iv)
         surveys, engineering reports, environmental reports and audits, and
         government or regulatory

<PAGE>
         compliance reports, and (v) other property (real, personal, or mixed,
         tangible or intangible), owned or held by Seller to the extent Buyer
         elects to take assignment thereof (collectively, all such property
         described in this subparagraph (d) being called the "Intangible
         Property").

                  The Land, the Improvements, the Appurtenances, the Intangible
         Property, and all the other aforesaid property, rights, and
         appurtenances are hereinafter collectively called the "Property."

                               2. PURCHASE PRICE

                  The purchase price for the Property shall be the sum of NINE
MILLION SEVEN HUNDRED EIGHTY FOUR THOUSAND EIGHT HUNDRED NINETY TWO and NO/100
Dollars ($9,784,892.00) (the "Purchase Price"), payable in cash, cashier's
checks, federal wire transfer funds, or other immediately available funds at
the Closing (as hereinafter defined), subject to any adjustments and credits
provided in this Agreement. If there are any mortgages, deeds of trust, or
other monetary liens affecting the Property, which were created by, through, or
under Seller, Seller shall pay off and obtain recordable releases and
terminations of all such mortgages and liens, whether the Purchase Price is
sufficient to pay off such mortgages and other liens, and Seller shall be
responsible for any prepayment premiums, document preparation fees, any fees to
record any releases or terminations, and other fees charged by mortgagees in
connection with this transaction.

                          3. INFORMATION REVIEW PERIOD

         Buyer shall have until 5:00 p.m., Houston, Texas time on December 13,
2002 (such period of time is hereinafter called the "Information Review
Period") to make the physical inspection of the Property which is referred to
in Paragraph 4 and decide, in Buyer's sole discretion, whether the Property is
satisfactory to Buyer so as to proceed with the Closing, as referred to herein.
Within five (5) days after the Effective Date, Seller shall deliver to Buyer,
to the extent in Seller's possession or readily obtainable from Seller's agents
or contractors, a true and complete copy of (a) any existing title policy or
commitment relating to the Property, (b) any existing survey of the Property,
and (c) any environmental reports, site assessments, closure reports or
letters, correspondence to and from the applicable governmental authorities, or
any similar documents relating to the environmental condition of the Property.
If Buyer determines as a result of the foregoing inspections and the like that
the condition of the Property is not satisfactory, in Buyer's sole and absolute
discretion, or if Buyer, in its sole discretion, decides FOR ANY REASON not to
purchase the Property during the Information Review Period, then Buyer shall
give Seller notice of Buyer's intent not to close by delivering written notice
thereof to Seller prior to the expiration of the Information Review Period,
whereupon this Agreement shall terminate, Buyer shall receive a refund of the
Earnest Money (hereinafter defined), together with any interest thereon, and
Seller and Buyer shall be relieved of all further obligations under this
Agreement

                                    Page 2
<PAGE>
(except those obligations, terms and provisions which are explicitly stated to
survive termination of this Agreement).

                       4. PHYSICAL INSPECTION OF PROPERTY

                  Buyer shall have the right (for itself, its engineers, and
other representatives) to enter onto the Property to make a physical inspection
thereof, to examine the structure of any Improvements, to conduct soil tests,
and to make such other examinations as Buyer shall deem appropriate. Seller
will cause its contractor, engineer and agents, to cooperate with Buyer, its
employees, agents, and representatives in connection with such inspection and
to respond in writing to such reasonable questions as Buyer (or its employees,
agents, engineers and representatives) may ask in connection with Buyer's
inspection. Commencing on the Effective Date, and continuing until the Closing
Date, Seller shall make available at Seller's office, for inspection and
copying by Buyer or Buyer's designated representatives, all books and records
relating to the Property.

                  Buyer shall indemnify and defend (using counsel reasonably
acceptable to Seller) Seller and hold Seller harmless from and against all
loss, liability, damage, injury, and claims resulting from Buyer's testing or
inspection of the Property; provided, however, this indemnity shall not
include, and shall specifically exclude, any loss, liability, damage, injury,
and claims arising out of or resulting from, in whole or in part (a) the gross
negligence, or willful misconduct of Seller, or Seller's agents,
representatives, contractors, or employees, or (b) the discovery by Buyer, or
its agents, representatives, contractors, or employees of the presence of any
toxic or hazardous substance or hazardous material in, on, or under the
Property, which condition must be remediated under applicable Environmental
Laws (as that term is hereinafter defined); provided, however, that the
exclusion referred to in item (b) shall not extend to any claims made by the
agents, representatives, contractors, or employees of Buyer arising out of
exposure to any toxic or hazardous substance or hazardous material in, on, or
under the Property which exposure occurs during the course of Buyer's
investigations. This indemnity shall survive the closing of this transaction
(or if this transaction does not close, the termination of this Agreement) for
a period of twelve (12) months commencing on the Closing Date (as hereinafter
defined), or if the transaction does not close, the date this Agreement is
terminated. Upon the expiration of such twelve (12) month period, this
indemnity shall automatically terminate without the necessity of any notice,
and Buyer shall be conclusively deemed released from any liability or
obligations under this indemnity.

                                    Page 3
<PAGE>

                                5. EARNEST MONEY
                  Within one business day after a counterpart or counterparts
of this Agreement executed by Seller and Buyer are delivered to Partners Title
Company (the "Title Company") at their office located at 712 Main, Suite 2000E,
Houston, Texas 77002-3218, Attn: Jim Suttles, Buyer will deposit with the Title
Company the sum of TWENTY FIVE THOUSAND and NO/100 Dollars ($25,000.00) (the
"Earnest Money"), which shall be held in escrow by the Title Company and shall
only be disbursed in accordance with the terms of this Agreement. The Title
Company shall deposit the Earnest Money in one or more interest bearing
accounts with a bank or other financial institution acceptable to Buyer. Upon
the closing of this transaction, the Earnest Money plus any accrued interest
thereon shall be credited against the Purchase Price. In the event this
transaction does not close, the Title Company shall disburse the Earnest Money
as provided in this Agreement and shall pay immediately to Buyer all interest
accrued on the Earnest Money. Additionally, concurrently with the execution of
this Agreement, Buyer shall deliver to Seller the sum of One Hundred and 00/100
Dollars ($100.00) ("Inspection Fee") as consideration for Buyer's information
review and property inspection rights set forth herein, which Inspection Fee
shall remain the property of Seller in all instances.

                  Buyer acknowledges receipt of Seller's existing environmental
reports, entitled (i) Environmental Site Assessment Phase 1 for Sun Terminals,
Inc. 5601 NW 72nd Ave and 6900 NW 58th St. Prepared for: Seefried Properties,
Inc. Prepared by: Dynatech Engineering Corp, dated April 6, 2001, and (the
"Existing Environmental Report"), and (ii) Environmental Site Assessment Phase
2 for Sun Terminals, Inc. 5601 NW 72nd Ave and 6900 NW 58th St. Prepared for:
Seefried Properties, Inc. Prepared by: Dynatech Engineering Corp, dated May 15,
2001. Buyer further acknowledges that Seller has delivered the same to Buyer
without any warranty, express or implied, regarding the accuracy, content, or
substance of thereof.

                            6. SURVEY; TITLE BINDER

                  Seller, at Seller's expense, shall deliver to Buyer, within
five (5) days after the Effective Date, Seller's current survey of the
Property, dated April 26, 2002 (hereinafter called the "Survey"). Buyer may, at
Buyer's expense, have the Survey updated so that it is prepared in accordance
with the current survey standards adopted by the American Land Title
Association ("ALTA") and the American Congress on Surveying and Mapping
("ACSM"), and sufficient to enable the Title Company to issue a title insurance
policy with extended coverage and which updated Survey shall contain a
certificate in a form reasonably satisfactory to the Title Company and Buyer,
and which shall be signed and sealed by the aforesaid surveyor or engineer. The
metes and bounds description of the Land included with the Survey, once
approved by Buyer and the Title Company, shall be substituted for the legal
description attached as Exhibit "A" hereto and shall be the legal description
attached to or incorporated into the Deed (as hereinafter defined).

                  Seller, at Seller's expense, shall furnish to Buyer within
five (5) days after the Effective Date a title commitment (hereinafter called
the "Title Binder") issued by the Title

                                    Page 4
<PAGE>
Company with the Owner's Title Policy to be underwritten by an underwriter
acceptable to Buyer (the "Title Underwriter"), showing title to the Property
and committing to issue the Owner's Title Policy to Buyer pursuant to Paragraph
10(a)(ii) of this Agreement, such Title Binder to specify all exceptions to
title, including, without limitation, easements, liens, encumbrances,
restrictions, conditions, or covenants affecting the Property. If any
exceptions appear on the Title Binder, other than the standard printed
exceptions (which shall be modified as provided in Paragraph 10(a)(ii) of this
Agreement) or if any encroachments, overlapping of improvements, or other
conditions are shown on the Survey that are not acceptable to Buyer, Buyer
shall, within five (5) days after receipt of the last of the Title Binder, the
Survey, and copies of all documents referred to therein, notify Seller in
writing of such fact. Seller shall not be obligated to cure such objections,
other than: (i) mortgages, deeds of trust, or other "monetary" liens affecting
the Property, which were created by, through, or under Seller; (ii) easements,
liens, encumbrances, and other defects in Seller's title voluntarily created by
Seller from and after the Effective Date, which such items shall be released at
Closing. If Seller is unwilling to cure such objections on or before the later
to occur of: (a) two (2) days prior to the expiration of the Information Review
Period, or (b) five (5) days after receipt of such notice (but in all events on
or before the date that is two (2) days prior to Closing), Buyer may at any
time on or before the expiration of the Information Review Period, as its sole
and exclusive remedies, terminate this Agreement by written notice to Seller,
or accept such title as Seller can deliver and, in the case of liens, subtract
the amount of such liens from the Purchase Price. In the event of such
termination, the parties shall have no further right or other obligation
hereunder (other than with respect to obligations hereunder that expressly
survive the termination of this Agreement), and the Earnest Money and accrued
interest thereon shall be returned to Buyer. Those exceptions or title
deficiencies that appear on the Title Binder and any encroachments, overlapping
of improvements, or other conditions that are shown on the Survey and are
accepted by Buyer pursuant to the terms of this Paragraph 6 shall constitute
the "Permitted Encumbrances"; provided, however, the term "Permitted
Encumbrances" shall not include any liens or any other title defects which
Seller is obligated to cure under the terms of this Agreement or agrees in
writing to cure on or before the Closing.

                             7. COVENANTS OF SELLER

                  Seller covenants and agrees with Buyer that, between the
Effective Date and the Closing Date:

                  (a) Seller will not enter into any lease, sublease,
         contracts, subcontracts, license, concessions, easements, or other
         agreements, either recorded or unrecorded, written or oral affecting
         any portion of the property without the prior written approval of
         Buyer, such approval not to be unreasonably withheld, other than those
         items that are required to preserve the existing building permit for
         the Property.

                                     Page 5
<PAGE>
                  (b) Seller will not sell, exchange, assign, transfer, convey,
         encumber, or otherwise dispose of all or any part of the Property or
         any interest therein, or accede to or negotiate for any of the
         foregoing.

                  (c) Seller will not, without the prior written consent of
         Buyer, enter into any service, maintenance, or management agreement
         with respect to the Property which is not terminable, without penalty
         or consideration, on no more than thirty (30) days notice.

                   8. SELLER'S REPRESENTATIONS AND WARRANTIES

                  Seller hereby represents and warrants to Buyer the following:

                  (a) Seller has received no written notice that the location,
         operation, or use of the Property violates any applicable law,
         statute, ordinance, rule, regulation, order, or determination of any
         governmental authority, or any restrictive covenant or deed
         restriction or zoning ordinance or classification affecting the
         Property, including, without limitation, all applicable health and
         environmental laws and regulations (hereinafter sometimes collectively
         called "Applicable Laws").

                  (b) Seller has not received any written notice that the
         Property is currently subject to any existing or pending investigation
         or inquiry by any governmental authority or to any remedial
         obligations under any Applicable Laws pertaining to health or the
         environment ("Environmental Laws"), nor to Seller's knowledge, is any
         such investigation or inquiry existing, pending, or threatened.

                  (c) There are no lease, use, or occupancy agreements by,
         through, or under Seller affecting all or any portion of the Property,
         and, other than Seller, there are no parties in possession of the
         Property, or any portion thereof.

                  (d) Seller is not a party to, and Seller has not received
         written notice of any actual litigation that is pending with respect
         to the Property, nor to Seller's knowledge, is there any litigation
         that is pending or threatened with respect to the Property (including,
         without limitation, any condemnation or notice of condemnation)
         affecting or related to the Property.

                  (e) Seller is a duly formed and validly existing limited
         partnership under the laws of the State of Delaware. Seller is
         authorized to enter into this Agreement, and the undersigned signatory
         party for Seller has been duly authorized to consummate the
         transaction contemplated by this Agreement. This Agreement has been
         executed by each person or entity that has an ownership interest in
         the Property, and there is no requirement that any person or entity
         that has not signed this Agreement grant any consent or take any other
         action in order to enable Seller

                                    Page 6
<PAGE>
         to convey the Property as contemplated by this Agreement.

                  (f) There are no written agreements between Seller and any
         other person for the sale or other conveyance of the Property, and
         Seller has not granted to any person an option to purchase, right of
         first refusal or other contractual right to acquire the Property, or
         any part thereof, or any interest therein.

                  The foregoing representations and warranties shall be deemed
to be repeated by Seller at the Closing and shall survive the Closing. For a
period of one (1) year from and after Closing, Seller agrees to indemnify,
defend, and hold Buyer harmless from and against, and to reimburse Buyer with
respect to, any and all claims, demands, causes of action, losses, damages,
liabilities, costs, and expenses (including reasonable attorney's fees and
court costs) of any and every kind or character, known or unknown, fixed or
contingent, asserted against or incurred by Buyer at any time and from time to
time by reason of or arising out of the breach of any representation or
warranty of Seller set forth herein. The phrase "to Seller's knowledge" or
words of similar import shall mean and refer to the actual, current knowledge
of Jon Kennedy, without independent investigation or inquiry.

         BUYER ACKNOWLEDGES THAT, EXCEPT AS EXPRESSLY SET FORTH HEREIN, THE
CONVEYANCE OF THE PROPERTY SHALL BE SPECIFICALLY MADE "AS-IS" AND "WHERE-IS,"
WITHOUT ANY REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED (EXCEPT AS TO ANY
EXPRESS REPRESENTATIONS AND WARRANTIES SET FORTH IN THIS AGREEMENT AND AS TO
TITLE AS SET FORTH IN THE SPECIAL WARRANTY DEED), INCLUDING, WITHOUT
LIMITATION, IMPLIED WARRANTIES OF FITNESS FOR ANY PARTICULAR PURPOSE OR
MERCHANTABILITY OR ANY OTHER WARRANTIES WHATSOEVER. BUYER FURTHER ACKNOWLEDGES
THAT, EXCEPT AS EXPRESSLY PROVIDED IN THIS AGREEMENT AND CLOSING DOCUMENTS,
NEITHER SELLER NOR ANY OF ITS AGENTS HAS MADE, AND THAT SELLER AND ITS AGENTS
SPECIFICALLY NEGATE AND DISCLAIM, ANY REPRESENTATIONS, WARRANTIES (EXCEPT AS
EXPRESSLY PROVIDED IN THIS AGREEMENT AND THE CLOSING DOCUMENTS), PROMISES,
COVENANTS, AGREEMENTS OR GUARANTIES OF ANY KIND OR CHARACTER WHATSOEVER NOT
MADE IN THIS AGREEMENT, WHETHER EXPRESS OR IMPLIED, ORAL OR WRITTEN, OF, AS TO,
CONCERNING, OR WITH RESPECT TO, (i) THE VALUE, NATURE, QUALITY OR CONDITION OF
THE PROPERTY, INCLUDING, WITHOUT LIMITATION, THE WATER, SOIL AND GEOLOGY, (ii)
THE PROPERTY'S SUITABILITY FOR ANY AND ALL ACTIVITIES AND USES WHICH MAY BE
CONDUCTED THEREON, (iii) THE COMPLIANCE OF OR BY THE PROPERTY WITH ANY LAWS,
RULES, ORDINANCES OR REGULATIONS OF ANY APPLICABLE GOVERNMENTAL AUTHORITY, (iv)
THE PROPERTY'S HABITABILITY, MERCHANTABILITY, MARKETABILITY, PROFITABILITY OR
FITNESS FOR A PARTICULAR PURPOSE, OR (v) ANY OTHER MATTER WITH RESPECT TO THE
PROPERTY, AND SPECIFICALLY, THAT NEITHER SELLER NOR ANY OF ITS AGENTS

                                    Page 7
<PAGE>
HAS MADE, AND THAT SELLER AND ITS AGENTS SPECIFICALLY NEGATE AND DISCLAIM
(EXCEPT AS EXPRESSLY PROVIDED IN THIS AGREEMENT AND THE CLOSING DOCUMENTS), ANY
REPRESENTATIONS OR WARRANTIES REGARDING THE PROPERTY'S COMPLIANCE WITH ANY
ENVIRONMENTAL PROTECTION, POLLUTION OR LAND USE LAWS, RULES, REGULATIONS.

         BY EXECUTION OF THIS AGREEMENT, BUYER ACKNOWLEDGES THAT, EXCEPT FOR
THE REPRESENTATIONS AND WARRANTIES OF SELLER EXPRESSLY CONTAINED IN THIS
AGREEMENT AND ANY INSTRUMENTS DELIVERED BY SELLER AT CLOSING, BUYER HAS RELIED
AND SHALL RELY SOLELY ON ITS OWN INVESTIGATION OF THE PROPERTY AND NOT ON ANY
INFORMATION PROVIDED OR TO BE PROVIDED BY SELLER, ITS AGENTS OR CONTRACTORS.
SELLER SHALL NOT BE LIABLE OR BOUND IN ANY MANNER BY ANY VERBAL OR WRITTEN
STATEMENTS, REPRESENTATIONS OR INFORMATION PERTAINING TO THE PROPERTY OR THE
OPERATION THEREOF, FURNISHED BY ANY PARTY PURPORTING TO ACT ON BEHALF OF SELLER
(EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT OR IN ANY INSTRUMENT DELIVERED
BY SELLER AT CLOSING).

                                9. CONDEMNATION

         Promptly upon commencement of condemnation proceedings in any part of
the Property by an appropriate governmental authority, Seller will notify Buyer
of the pendency of such proceedings. Subject to the provisions at the end of
this sentence, in the event of the condemnation of any portion of the Property
or the sale of any portion of the Property in lieu of condemnation, this
Agreement shall remain in full force and effect, and in such event Seller shall
assign to Buyer any and all claims for the proceeds of such condemnation or
sale, and Buyer shall take title to the remainder of the Property with the
assignment of such proceeds and subject to such condemnation and without
reduction in the Purchase Price; provided, however, that if after such
condemnation or conveyance in lieu thereof the remainder of the Property would
no longer be suitable for Buyer's purposes, in Buyer's sole and absolute
discretion, then the Buyer may terminate this Agreement by notice in writing to
Seller within ten (10) days following notice in writing by Seller of such
condemnation of the Property, in which event the parties shall have no further
rights or obligations hereunder, and the Earnest Money shall be returned to
Buyer. If Buyer does not elect to terminate within said ten (10) day period
following such notice by Seller, Buyer shall be deemed to have waived all
rights to terminate pursuant to this provision and this Agreement shall remain
in full force and effect.

                                    Page 8
<PAGE>
                                  10. CLOSING

                  Provided that all conditions precedent to the Closing have
been satisfied, and this Agreement has not otherwise been rightfully terminated
pursuant to its terms, the closing of the conveyance and purchase of the
Property (herein called the "Closing") shall occur on or before December 15,
2002 (the "Closing Date"). The Closing shall take place at the offices of the
Title Company. At the Closing, the following shall occur:

                  (a)      Seller shall deliver to Buyer the following:

                           (i) a Special Warranty Deed (the "Deed") conveying
                  fee simple title to the Property to Buyer free of any
                  exceptions other than the Permitted Encumbrances;

                           (ii) at Seller's expense, an ALTA extended coverage
                  owner's title insurance policy issued by the Title
                  Underwriter in the amount of the Purchase Price insuring
                  Buyer that Buyer holds fee title to the Property subject only
                  to (a) the standard printed exceptions including the
                  following modifications to the standard typed or printed
                  exceptions in the Title Binder: (1) the restrictive covenants
                  exception shall be deleted if the Title Binder does not list
                  any restrictive covenants as exceptions to title; (2) the
                  standard exception for current taxes shall except only to
                  taxes for the year in which the Closing occurs and shall
                  indicate that such taxes are not yet due and payable; (3) the
                  exception for any discrepancies, conflicts, encroachments, or
                  any overlapping of improvements shall be deleted; (4) the
                  exception for rights of tenants and other parties in
                  possession shall be deleted (other than with respect to
                  Seller's rights as a tenant in possession under the Lease
                  (hereinafter defined); (5) the standard survey exception
                  shall be deleted and replaced with those items (if any) that
                  are specifically disclosed by the Survey, and (6) the
                  mechanics lien exception shall be deleted; and (b) the
                  Permitted Encumbrances (the "Title Policy").

                           (iii)    an assignment of all Intangibles;

                           (iv) all licenses, permits, and governmental
                  certificates and approvals relating to the Property, to the
                  extent the same are assignable;

                           (v)      Intentionally Deleted;

                           (vi) an affidavit from Seller and any other parties
                  required pursuant to Section 1445 of the Internal Revenue
                  Code and/or regulations relating thereto stating, under the
                  penalty of perjury, (1) that neither Seller

                                    Page 9
<PAGE>
                  nor any other party so swearing is a foreign person, (2) the
                  U.S. Taxpayer identification number of Seller and such other
                  parties, if any, and (3) such other information as may be
                  required by regulations enacted by the U.S. Department of the
                  Treasury in connection with Section 1445 of the Internal
                  Revenue Code. An executed counterpart of this affidavit will
                  be furnished to the Internal Revenue Service and Buyer at
                  Closing;

                           (vii)    Intentionally Deleted;

                           (viii) such evidence as may be reasonably required
                  by Buyer or the Title Company evidencing the status and
                  capacity of Seller and the authority of the person or persons
                  who are executing the various closing documents on behalf of
                  Seller in connection with this Agreement;

                           (ix) such affidavits, indemnities, and other
                  documents as the Title Company may require from Seller as a
                  condition to issuing the Owner's Title Policy in accordance
                  with Paragraph 10(a)(ii), including a "Mechanics Lien
                  Affidavit" and a so-called "Seller's Affidavit" or "Gap
                  Affidavit", in each case in form and substance reasonably
                  acceptable to Seller; and

                           (x) Such other documents as Seller and Buyer may
                  have agreed to deliver at the Closing. All closing documents
                  shall be prepared by Buyer and shall be consistent with this
                  Agreement and with custom and usage for similar type
                  transactions.

                  (b) Buyer shall pay the Purchase Price to the Title Company
         in the form of immediately available funds.

                  (c) General real estate taxes for the then current year
         relating to the Property shall be prorated as of the Closing Date. If
         the Closing shall occur before the tax rate is fixed for the then
         current year, the apportionment of taxes shall be made on the basis of
         the tax rate for the immediately preceding year applied to the latest
         assessed valuation of the Property, provided that, if the taxes
         actually due for the current year are more or less than the taxes for
         the preceding year, then within thirty (30) days after the issuance of
         the then current year's tax bill, Seller and Buyer shall adjust the
         proration of such taxes and Seller or Buyer, as the case may be, shall
         pay to the other any amount required as a result of such adjustment;
         this covenant shall not merge with the deed delivered hereunder but
         shall survive the Closing. All special taxes or assessments assessed
         prior to the Closing Date shall be paid by Seller, and those assessed
         after the Closing Date shall be paid by Buyer.

                  (d) All income from, and expenses of, the Property, if any,
         including but not limited to public utility charges, interest,
         maintenance charges, and service

                                    Page 10
<PAGE>
         charges, shall be prorated as of the Closing Date. To the extent that
         information for any such proration is not available at the Closing,
         the parties shall effect such proration within ninety (90) days after
         Closing. If, however, the proration of any item of income or expense
         cannot be made within ninety (90) days after the Closing, then the
         proration of such item shall be made within ten (10) days after the
         information relating to such item becomes available. The provisions of
         this subparagraph (d) shall survive the Closing.

                  (e) Possession of the Property shall be delivered to Buyer.

                  (f) Any escrow fee charged by the Title Company shall be paid
         one-half (1/2) by Seller and one-half (1/2) by Buyer. Seller shall pay
         the fee for recording the warranty deed and any other documents
         recorded in this transaction, the cost of the Survey, the premium for
         the Owner's Title Policy and for any required endorsements thereto,
         and the costs and fees of the Title Company incurred in connection
         with the issuance of the Title Binder and the Owner's Title Policy.
         Each party shall be responsible for the payment of its own attorney's
         fees incurred in connection with this transaction. Buyer shall be
         responsible for any and all documentary stamp taxes, real estate
         transfer taxes, or similar fees or taxes on the Deed delivered at
         Closing. Buyer shall be responsible for any and all documentary stamp
         taxes, real estate transfer taxes, or similar fees or taxes on any
         mortgage obtained by Buyer at Closing Any other costs payable at the
         Closing shall be allocated to Buyer and Seller as is customary in the
         county in which the Property is located.

                  (g) Buyer and Seller shall enter into a lease, in the form
         attached hereto as Exhibit "B" (the "Lease"), pursuant to which Buyer
         shall lease to Seller, and Seller shall lease from Buyer, all of the
         Land together with all future improvements to be constructed on the
         Land, as more particularly set forth in the Lease.

                                  11. REMEDIES

                  (a) Seller shall deemed to be in default under this Agreement
upon the occurrence of any one or more of the following events: (i) any of
Seller's representations or warranties is or becomes untrue in any material
respect at any time on or before Closing; or (ii) Seller should fail or refuse
to perform any of Seller's obligations hereunder, including, without
limitation, Seller's obligations at Closing under Paragraph 10 hereof. If
Seller is deemed to be in default under this Agreement, then Buyer may, at its
option, exercise either of the following remedies: (i) terminate this Agreement
and obtain a refund of the Earnest Money, with interest accrued thereon; or
(ii) enforce specific performance.

                  (b) If Seller shall have complied with all Seller's covenants
and obligations hereunder and all the conditions of Buyer's obligations
hereunder shall have been timely fulfilled

                                    Page 11
<PAGE>
but Buyer defaults and fails and refuses to close the purchase of the Property
as herein contemplated, Seller's sole and exclusive remedy shall be to receive
the Earnest Money; it being acknowledged and agreed by Seller and Buyer that
the Earnest Money to which Seller may be entitled under this Paragraph 11(b) is
a reasonable forecast of just compensation for the harm that could be caused by
Buyer's default, that the harm that could be caused to Seller by such default
is one that is difficult or impossible to accurately ascertain or predict, and
that the payment of the Earnest Money to Seller upon Buyer's default shall
constitute full satisfaction and accord of Buyer's obligations under this
Agreement. Seller hereby waives and releases any claim for specific performance
and all claims or remedies other than Seller's right to receive the Earnest
Money in accordance with the terms of this Paragraph 11(b).

                                   12. BROKER

                  Each party hereto represents to the other that such
respective party has not authorized any broker or finder to act on its behalf
in connection with the sale and purchase hereunder, and each party hereto
further represents to the other that no commission, brokerage fee, or other sum
is payable to any broker, finder or other party in connection with this
Agreement or the consummation of the transaction contemplated hereby. Each
party hereto agrees to indemnify, defend, and hold harmless the other party
from and against any and all claims, losses, damages, costs, or expenses
(including, but not limited to, reasonable attorney's fees) of any kind or
character arising out of or resulting from any agreement, arrangement, or
understanding alleged to have been made by such party with any broker or finder
in connection with this Agreement or the transaction contemplated hereby. This
Paragraph 12 shall survive the Closing or any earlier termination of this
Agreement.

                                   13. NOTICE

                  Any notice or communication required or permitted hereunder
shall be given in writing, sent by (a) personal delivery, (b) overnight courier
or delivery service with proof of delivery, (c) United States mail, postage
prepaid, registered or certified mail, or (d) prepaid telegram or telecopy
(provided that such telegram or telecopy is confirmed by mail in the manner
previously described), addressed as follows:

                  To Seller:          EGL Eagle Global Logistics, L.P.
                                      15350 Vickery Drive
                                      Houston, TX 77032
                                      Attn: Sr. Vice Pres., Corp, Admin.
                                      Telephone: (281) 618-3303
                                      Facsimile: (281) 618-3304

                                    Page 12
<PAGE>
                  With a copy to
                  (which shall not
                  constitute notice): Mr. William C. Stroh
                                      Baker & Hostetler, LLP
                                      1000 Louisiana, Suite 2000
                                      Houston, Texas 77002
                                      Telephone: (713) 646-1369
                                      Facsimile: (713) 751-1717

                  To Buyer:           McMillan Investment Company, Ltd.
                                      3003 W. Alabama
                                      Houston, Texas 77098
                                      Attn: Mr. Dan M. Moody, III
                                      Telephone: (713) 773-5540
                                      Facsimile: (713) 773-5556

                  With a copy to
                  (which shall not
                  constitute notice): Mr. E. Scot Dixon
                                      Haynes and Boone, LLP
                                      1000 Louisiana, Suite 4300
                                      Houston, Texas 77002
                                      Telephone: (713) 547-2260
                                      Facsimile: (713) 236-5639

or to such other address or to the attention of such other person as hereafter
shall be designated in writing by the applicable party in a notice sent in
accordance with these notice provisions. Any such notice or communication shall
be deemed to have been given at the time of personal delivery or, in the case
of certified or registered mail, two (2) days after deposited in the custody of
the United States Postal Service, or in the case of overnight courier or
delivery service, as of the date of first attempted delivery at the address and
in the manner provided herein, or, in the case of telegram or telecopy, upon
receipt.

                               14. MISCELLANEOUS

                  (a) This Agreement shall be binding upon and shall inure to
the benefit of the parties hereto, and their heirs, successors, and assigns.
Whenever in this Agreement a reference is made to any of the parties hereto,
such reference shall be deemed to include a reference to the heirs, legal
representatives, successors, and assigns of such parties. Buyer shall have the
right to assign this Agreement, without obtaining Seller's prior written
consent, to any entity that is controlled by Buyer and/or by the principals of
Buyer; provided notice of such assignment is promptly

                                    Page 13
<PAGE>
delivered to Seller, and provided, further, that such assignee agrees in
writing to assume the obligations and liabilities of "Buyer" hereunder.
Assignment to any other party without Seller's prior written consent, which
shall not be unreasonably withheld, conditioned, or delayed, is prohibited and
shall be considered null and void, ab initio. No assignment of the interest of
"Buyer" under this Agreement shall relieve Buyer of its obligations and
liabilities hereunder.

                  (b) The titles of the Articles of this Agreement shall have
no effect and shall neither limit nor amplify the provisions of the Agreement
itself.

                  (c) This Agreement constitutes the entire agreement between
the parties and supersedes and replaces all prior and contemporaneous
agreements, representations, and understandings between Buyer and Seller,
whether written or oral. This Agreement shall not be amended or changed except
by written instrument signed by the party to be charged therewith.

                  (d) Time is of the essence with respect to the various times
for performance by Seller and Buyer.

                  (e) This Agreement is the result of negotiations between the
parties and, accordingly, shall not be construed for or against either party
regardless of which party drafted this Agreement or any portion thereof.

                  (f) It is not intended by this Agreement to, and nothing
contained in this Agreement shall, create any partnership, joint venture, or
other similar arrangement between Seller and Buyer. No term or provision of
this Agreement is intended to, or shall, be for the benefit or any person,
firm, corporation, or other entity not a party hereto (including, without
limitation, any broker), and no such party shall have any right or cause of
action hereunder.

                  (g) The terms and provisions of this Agreement shall be
governed by and construed in accordance with the laws of the State of Florida
and applicable federal law.

                  (h) Except as herein expressly provided, no waiver by a party
of any breach of this Agreement or of any warranty or representation hereunder
by the other party shall be deemed to be a waiver of any other breach by the
other party (whether preceding or succeeding and whether of the same or similar
nature), and no acceptance of payment or performance by a party after any
breach by the other party shall be deemed to be a waiver of any breach of this
Agreement or of any representation or warranty hereunder by such other party,
whether the first party knows of such breach at the time it accepts such
payment or performance. No failure or delay by a party to exercise any right it
may have by reason of the default of the other party shall operate as a waiver
of default or modification of this Agreement or shall prevent the exercise of
any right by the first party while the other party continues to be so in
default.

                  (i) Each section of this Agreement constitutes a separate
agreement between the parties. In the event that any provision of this
Agreement, which would not deprive the parties, or

                                    Page 14
<PAGE>
either of them, of the benefit of the bargain, is deemed to be illegal,
invalid, or unenforceable on its face or as applied, then such provision shall
be deemed severed herefrom to the extent illegal, invalid, and unenforceable.

                  (j) If any date set forth in this Agreement as the last date
for the taking of any action hereunder shall fall on a Saturday, Sunday, or a
federal holiday (a federal holiday being a day on which the United States
Postal Service does not deliver first class mail), then the last date for
taking such action shall be extended to the next succeeding day that is not a
Saturday, Sunday, or federal holiday.

                  (k) The date upon which Buyer and the Title Company each
receives a counterpart original of this Agreement duly executed by Seller and
Buyer and the Title Company receives the Earnest Money shall be the "Effective
Date" of this Agreement for all purposes.

                  (l) If more than one party constitutes "Seller," as that term
is defined in this Agreement, then all parties constituting Seller shall be and
are jointly and severally liable for each and every obligation of Seller, of
whatever nature, under the terms of this Agreement.

                         [SIGNATURES ON FOLLOWING PAGE]

                                    Page 15
<PAGE>

                  EXECUTED by Buyer this ___ day of ___________________, 2002.

                            MCMILLAN INVESTMENT COMPANY,
                            LTD., a Texas limited liability company

                            By:
                               ------------------------------------------------
                            Name:
                                 ----------------------------------------------
                            Title:
                                  ---------------------------------------------

                                                                        "BUYER"

                  EXECUTED by Seller this ____ day of ___________________,
2002.

                            EGL EAGLE GLOBAL LOGISTICS, LP

                            By:      EGL Management, LLC General
                                     Partner

                                     By:
                                        ---------------------------------------
                                              Jon Kennedy, Senior Vice
                                              President, Corporate
                                              Administration

                                                                       "SELLER"

                                    Page 16
<PAGE>
                            RECEIPT OF TITLE COMPANY

                  The undersigned Title Company hereby acknowledges receipt of
(1) a counterpart of this Agreement, and (2) the Earnest Money. The Title
Company agrees to hold and disburse the Earnest Money in accordance with the
provisions of this Agreement. The Title Company further agrees that it shall be
responsible for all reporting to the Internal Revenue Service relating to the
transaction contemplated by this Agreement that is required under Section 6045
of the Internal Revenue Code of 1986, as amended.

                  EXECUTED as of the       day of _______________, 2002.
                                     -----

                             PARTNERS TITLE COMPANY

                             By:
                                ----------------------------------------------
                             Name:
                                  --------------------------------------------
                             Title:
                                   -------------------------------------------

                                                                "TITLE COMPANY"

                                    Page 17

<PAGE>

                                                                       03/24/03

                              SCHEDULE OF EXHIBITS

Exhibit "A" - Land
Exhibit "B" - Form of Lease
G:\HOdata1\wcs4506\Eagle USA\Miami Airport Lease (Envir)\P&S Agmt 120402.DOC

                                     -(1)-

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