Document:

OPERATING AGREEMENT

                                       OF

                             FRONTIER CENTER ONE LLC

                                 By and Between

                            SHEA FRONTIER CENTER LLC

                                       and

                                 7001 TOWER, LLC

                                       and

                             FRONTIER AIRLINES, INC.

                                  May 10, 2000

<PAGE>

                             Table of Contents                              Page

ARTICLE I         DEFINITIONS; INTERPRETATION..................................1
         1.1 Certain Definitions...............................................1
         1.2 Interpretation...................................................10
             (a)  Captions and Meanings.......................................10
             (b)  Extension to Business Day...................................11
             (c)  Monetary Amounts............................................11

ARTICLE II        FORMATION AND EXISTENCE.....................................11
         2.1 Formation; Preservation..........................................11
         2.2 Name; Transacting Business.......................................11
         2.3 Place of Business................................................11
         2.4 Registered Office and Registered Agent...........................11
         2.5 Term.............................................................11

ARTICLE III       PURPOSES AND POWERS.........................................12
         3.1 Purposes.........................................................12
         3.2 Powers...........................................................12

ARTICLE IV        CAPITAL CONTRIBUTIONS; LOANS; GUARANTEES....................12
         4.1 Capital Contributions............................................12
             (a)  General.....................................................12
             (b)  Initial Capital Contribution................................12
             (c)  Additional Capital Contributions............................12
             (d)  Additional Contribution for Frontier Incentive Payment......13
             (e)  Interest on and Return of Capital...........................13
         4.2 Project Financing................................................13
             (a)  Frontier Center One Financing...............................13
             (b)  Third-Party Financing.......................................13
         4.3 Other Loans......................................................14
         4.4 Guarantees, Indemnities, Etc.....................................14

ARTICLE V         CAPITAL ACCOUNTS; ALLOCATIONS; DISTRIBUTIONS................14
         5.1 Capital Accounts Generally.......................................14
         5.2 Allocations for Book Purposes....................................15
             (a)  Operating Income and Loss...................................15
             (b)  Allocations of Gains........................................15
             (c)  Allocations of Losses.......................................15
             (d)  Special Allocations.........................................16

        (1)       Minimum Gain Chargeback.....................................16
        (2)       Member Minimum Gain Chargeback..............................16
        (3)       Qualified Income Offset.....................................16
        (4)       Member Nonrecourse Deductions...............................16
        (5)       Code Section 754 Adjustments................................16
        (6)       Curative Allocations........................................17
        (7)       Excess Nonrecourse Liabilities..............................17
        (8)       Allocations Relating to the Frontier Incentive Payment......17
        (9)       Allocations Relating to Frontier Operating Distributions....17

         5.3 Allocations for Tax Purposes.....................................17

         5.4 Distributions....................................................18

         5.5 Negative Capital Accounts........................................19

ARTICLE VI        MANAGEMENT..................................................19

         6.1 Manager..........................................................19

             (a)  Generally; Certain Powers...................................19
             (b)  Manager's Specific Duties...................................20

        (1)       Management Services.........................................20
        (2)       Development Services........................................20
        (3)       Construction of the Improvements............................20
        (4)       Property Management Services................................21
        (5)       Project Leasing Services....................................21
        (6)       Insurance...................................................21
        (7)       Employees; Legal Compliance.................................21

             (c)  Right to Rely on Manager; Attorney-in-Fact..................21
             (d)  Appointment, Resignation or Removal.........................21
             (e)  Manager Compensation........................................22
             (f)  Property Management Fee.....................................22
             (g)  Licensing...................................................22

         6.2 Major Decisions and Major Operating Decisions....................22

             (a)          Major Decisions.....................................22
             (b)          Major Operating Decisions...........................23

         6.3 Member Meetings and Voting.......................................24

         6.4 Member Compensation; Development Fee.............................24

         6.5 Management Relationships.........................................25

         6.6 Designated Representatives.......................................25

         6.7 Indemnification..................................................25

         6.8 Other Activities and Competition.................................26

             (a)  Other Activities............................................26
             (b)  Competition.................................................26

         6.9 Rights of the Frontier...........................................26

             (a)  Limitation of Rights........................................26
             (b)  Limitation of Duties........................................26
             (c)  Information.................................................27
             (d)  Event of Default............................................27

ARTICLE VII       BANK ACCOUNTS; BOOKS AND RECORDS; REPORTS; TAX MATTERS;
                  CONFIDENTIALITY.............................................27

         7.1 LLC Accounts.....................................................27

         7.2 Books and Records; Financial Statements..........................27

         7.3 Tax Matters......................................................28

             (a)  Partnership Treatment.......................................28
             (b)  Tax Returns and Elections...................................28
             (c)  Tax Matters Member..........................................28

         7.4 Regulatory Requirements..........................................29

ARTICLE VIII      ADMISSION AND WITHDRAWAL OF MEMBERS; TRANSFERS..............29

         8.1 Admission and Withdrawal of Members..............................29

             (a)  Admission...................................................29
             (b)  Withdrawal..................................................30

         8.2 Transfers of LLC Interests and Member Interests..................30

             (a)  Permitted Transfers.........................................30
             (b)  Void Transfers..............................................31

ARTICLE IX        PUT AND CALL; RIGHT OF FIRST OFFER..........................31

         9.1 Put/Call Offering Notice.........................................31

         9.2 Exercise of Put/Call.............................................31

             (a)  Exercise....................................................31
             (b)  Put/Call Offering Price.....................................32
             (c)  Exercise....................................................32
             (d)  Designee of Purchasing Member...............................32

         9.3 Put/Call Closing.................................................32

         9.4 Audit After Put/Call Closing; Final Settlement...................33

         9.5 Tax Returns......................................................33

         9.6 Right of FirstOffer..............................................33

ARTICLE X         DISSOLUTION; LIQUIDATION....................................35

        10.1 Dissolution; Liquidation.........................................35

             (a)  Members' Covenant...........................................35
             (b)  Dissolution.................................................35
             (c)  Liquidation; Liquidator.....................................35

        10.2 Final Payments and Distributions.................................36

             (a)  Application Priorities......................................36
             (b)  Distributions in Kind.......................................36

        10.3 Fillings.........................................................36

ARTICLE XI        DEFAULT; REMEDIES...........................................36

        11.1 Events of Default................................................37

        11.2 Remedies.........................................................37
             (a)  Remedies Generally..........................................37
             (b)  Indemnification.............................................37
             (c)  Arbitration.................................................37

        (1)       Location....................................................37
        (2)       Rules and Selection of Arbitrator...........................37
        (3)       Powers of Arbitrator........................................38
        (4)       Discovery and Rules of Evidence.............................38
        (5)       Timing......................................................38
        (6)       Transcript..................................................38
        (7)       Costs.......................................................38
        (8)       Reconsideration.............................................39
        (9)       Specific Enforcement........................................39
        (10)      Interest on Award...........................................39
        (11)      Extraordinary Remedies......................................39

             (d)  Limitation on Damages.......................................39

ARTICLE XII       MISCELLANEOUS...............................................39

        12.1 Press Releases and Confidentiality...............................39

        12.2 Notices..........................................................40

        12.3 Waivers..........................................................41

        12.4 Successors and Assigns; No Third-Party Beneficiaries.............41

        12.5 Waiver of Action for Partition...................................41

        12.6 Integration; Incorporation; Severability; Modifications..........41

        12.7 Negotiated Provisions............................................41

        12.8 Governing Law....................................................41

        12.9 Jurisdiction.....................................................41

       12.10 Waiver of Jury Trial.............................................41

       12.11 Costs of Legal Proceedings.......................................42

       12.12 Further Assurances...............................................42

       12.13 Counterparts.....................................................42

                                    EXHIBITS

Exhibit A         Developer's Pre-Development Work Product...................A-1
Exhibit B         Legal Description of the Land..............................B-1
Exhibit C         Owner's Pre-Development Work Product.......................C-1
Exhibit D         Initial Project Development Plan...........................D-1

<PAGE>

                               OPERATING AGREEMENT

                                       OF

                             FRONTIER CENTER ONE LLC

This Operating  Agreement (this "Agreement") is entered into as of May 10, 2000,
by and between SHEA FRONTIER CENTER, LLC, a California limited liability company
(the "Developer  Member"),  and 7001 TOWER,  LLC, a Colorado  limited  liability
company  (the  "Owner  Member"),   and  FRONTIER  AIRLINES,   INC.,  a  Colorado
corporation ("Frontier").

                                   ARTICLE I
                           DEFINITIONS; INTERPRETATION

1.1 Certain  Definitions.  Unless the context  otherwise  requires,  capitalized
terms  used  herein  without  definition  shall  have the  following  respective
meanings.

                  "AAA" means the American Arbitration Association.

                  "AAA Rules" means the Commercial Arbitration rules of the AAA.

                  "Act" means the Colorado Limited Liability Company Act and any
successor statute, as amended from time to time.

                  "Additional Capital  Contribution" shall mean any contribution
to the capital of the LLC pursuant to Sections 4.1(c) and (d), but not including
the Initial Capital Contribution.

                  "Adjusted  Basis" means the basis,  as defined in Section 1011
of the Code, for  determining  gain or loss for federal income tax purposes from
the sale or other disposition of property.

                  "Adjusted Capital Account" means each Member's Capital Account
determined  as of the end of each Fiscal Year (a) increased by (i) the amount of
any  unpaid  Capital  Contributions  (if  any)  unconditionally   agreed  to  be
contributed  by such Member  hereunder,  (ii) an amount equal to the sum of such
Member's  allocable  share  of  Minimum  Gain  attributable  to LLC  Nonrecourse
Liabilities and such Member's  allocable  share of Minimum Gain  attributable to
Member  Nonrecourse  Debt, in each case as computed as of the end of such Fiscal
Year in accordance with applicable Treasury Regulations, and (iii) the amount of
LLC  liabilities  allocable  to such Member  under  Section 752 of the Code with
respect to which such Member bears the Economic Risk of Loss, to the extent such
liabilities do not constitute "Member  Nonrecourse Debt," and (b) reduced by all
reasonably  expected  adjustments,  allocations and  distributions  described in
Treasury  Regulations  Sections  1.704-1(b)(2)(ii)(d)(4),   (5),  and  (6).  For
purposes of this definition of "Adjusted Capital Account," any recourse debt for
which no Member  bears the  Economic  Risk of Loss  shall be  treated  as an LLC
Nonrecourse   Liability.   The  foregoing  is  meant  to  comply  with  Treasury
Regulations 1.704-1(b)(2)(ii)(d) and to be interpreted consistently therewith.

                  "Affiliate"  means any other  person  or  entity  directly  or
indirectly  controlling,  controlled by, or under common control with the person
or entity to which such term applies.  As to any natural  person,  such person's
spouse, child, grandchild, grandparent, sibling, as well as the spouse of any of
the  foregoing,  shall be  Affiliates  of such person.  In  addition,  as to any
corporation,  limited liability company, partnership, trust or other entity, any
person with any of the foregoing  relationships to any person in control of such
entity as a general partner, member, manager, shareholder,  trustee or otherwise
shall be deemed to be an  Affiliate  of such  entity.  An  Affiliate of a Member
shall  include any entity in which such Member or any  Affiliate  of such Member
has control. For purposes of this definition,  Section 8.2(a) and Section 9.2(d)
"control" as applied to any person or entity means the  possession,  directly or
indirectly,  of the power to direct or cause the  direction  of the  management,
policies  and  decision-making  of such  person or entity,  whether  through the
ownership of voting  interests or by contract or otherwise.  For purpose of this
definition and Section  8.2(a),  "control"  shall also include the possession of
direct or indirect  equity or  beneficial  interests  in at least fifty  percent
(50%) of the profits or voting control of any entity.

                  "Agreed  Value"  means,  with  respect  to money,  the  amount
thereof,  and with  respect to any other  property  of the LLC,  the fair market
value  of  such  property,  as  determined  by the  Members  as of the  date  of
determination,  provided, however, the Agreed Value of the Land, the Developer's
Pre-Development Work Product and the Owner's  Pre-Development Work Product shall
be as determined pursuant to the Contribution Agreement.

                  "Agreement"  means this Operating  Agreement,  as amended from
time to time.

                  "Alternate  Designee"  shall have the meaning given in Section
6.6.

                  "Arbitrable  Dispute"  shall have the meaning given in Section
11.2(c).

                  "Arbitration  Act"  shall  have the  meaning  given in Section
11.2(c)(3).

                  "Arbitration Party" shall mean a named party to an Arbitration
Proceeding.

                  "Arbitration  Proceeding"  shall  have  the  meaning  given in
Section 11.2(c).

                  "Articles of Organization"  means the Articles of Organization
of the LLC as filed with the  Secretary of State of Colorado on May 5, 2000,  as
the same may be amended from time to time.

                  "Bankruptcy"  means,  with  respect  to any  person,  (i)  the
initiation by such person of any action or proceeding  seeking under any law any
reorganization,  arrangement, adjustment, composition, liquidation, dissolution,
winding-up  or similar  relief or the  appointment  of a  receiver,  liquidator,
assignee,  trustee,  custodian,  sequestrator or other similar official for such
person or any material part of its assets, (ii) the making by such person of any
assignment  for the benefit of its creditors or any admission in writing by such
person of its  inability  to pay its debts as such debts come due,  or (iii) the
initiation of any action or proceeding against such person seeking under any law
any   reorganization,   arrangement,   adjustment,   composition,   liquidation,
dissolution,  winding-up  or similar  relief or the  appointment  of a receiver,
liquidator, assignee, trustee, custodian, sequestrator or other similar official
for such person or any material part of its assets and such person acquiesces in
such action or  proceeding  or such action or  proceeding  is not  discharged or
dismissed within sixty (60) days after the initiation thereof.

                  "Business  Day" means any day other than a day on which  banks
in Denver are permitted or required by applicable law to be closed.

                  "Capital  Account"  means,  with  respect to any  Member,  the
capital account of such Member  maintained  pursuant to Article V or the balance
thereof, as the context may require.

                  "Capital  Contribution"  means  any  cash  or  other  property
contributed at any time to the LLC pursuant to Article IV by or on behalf of any
person in such  person's  capacity as a Member,  including  the Initial  Capital
Contribution and any Additional Capital Contribution.

                  "Carrying Value"  means,  with  respect  to any LLC Asset, the
Adjusted Basis thereof, except as follows:

(a)      The  initial  Carrying  Value of any LLC Asset  contributed  (or deemed
         contributed)  to the LLC shall be the Agreed Value  thereof at the time
         of such contribution;

(b)      Any  adjustment  to the  Adjusted  Basis of any LLC Asset  pursuant  to
         Section  734  or 743 of  the  Code  shall  be  taken  into  account  in
         determining,  in a manner consistent with Treasury  Regulations Section
         1.704-(1)(b)(2)(iv)(m), the Carrying Value thereof; and

(c)      If the Carrying Value of any LLC Asset has been determined  pursuant to
         paragraph  (a) or (b) above,  such Carrying  Value shall  thereafter be
         adjusted  in the same  manner as would the  Adjusted  Basis of such LLC
         Asset.

                  "Code"  means the  Internal  Revenue  Code of 1986,  as now in
effect and  hereafter  amended,  and,  unless the  context  otherwise  requires,
applicable regulations thereunder. Any reference herein to a specific section or
sections of the Code shall be deemed to include a reference to any corresponding
provision of future law.

                  "Consent" means,  with respect to the taking of any action for
which the consent of a Member is  required,  the written  consent of such Member
for the taking of such action.

                  "Contributed  Property"  means each LLC Asset,  excluding cash
and any property or other assets  treated as sold to the LLC pursuant to Section
707(a) of the Code,  contributed to the LLC (or deemed contributed to the LLC on
termination and reconstitution thereof pursuant to Section 708 of the Code).

                  "Contribution  Agreement" means the Formation and Contribution
Agreement of even date herewith by and between the  Developer and Owner,  as the
same hereafter may be amended from time to time.

                  "Date of Value" shall have the meaning given in Section 9.1.

                  "Deciding Members"  means  the  Developer Member and the Owner
                  Member.

                  "Denver" means the City and County of Denver, Colorado.

                  "Designated  Representative"  shall have the meaning  given in
Section 6.6(a).

                  "Developer" means Shea Homes Limited  Partnership,  d/b/a Shea
Homes, a California limited partnership.

                  "Developer Member Preferred Return" means an amount accrued on
the Unreturned  Developer Member Preferred Equity at a rate of ten percent (10%)
per annum,  compounded as of the first day of each Fiscal Quarter, from the date
of this Agreement.

                  "Developer's Pre-Development Work Product" means those certain
items set forth in Exhibit A attached hereto,  all of which have heretofore been
assigned and transferred to the LLC.

                  "Development Fee" shall have the meaning given in Section 6.4.

                  "DIBC   Covenants"   means  the   covenants,   conditions  and
restrictions  affecting the Land,  including the  provisions  thereof  requiring
approval from the Review  Committee (as defined therein) for any improvements to
the Land,  as  provided  therein,  as the same have  been and  hereafter  may be
amended from time to time.

                  "Dispose,  Disposing or Disposition"  means to consummate,  or
the  consummation  (voluntarily or by operation of law) of, a conveyance,  sale,
assignment,  transfer,  exchange,  lease, mortgage,  pledge, grant of a security
interest or lien or other disposition or encumbrance.

                  "Distribution"  means  any cash or other  property  whatsoever
distributed at any time by the LLC to any person in such person's  capacity as a
Member; provided,  however, the Development Fee, the Frontier Incentive Payment,
any fees payable to the Manager  hereunder or any reimbursable  expenses payable
to  the  Manager  or  any  Member   pursuant   hereto  shall  not  constitute  a
Distribution.

                  "Economic  Risk of  Loss"  shall  have  the  meaning  given in
Treasury Regulations Section 1.752-2(a).

                  "Event of  Default"  shall have the  meaning  given in Section
11.1.

                  "Filing  Office" means the Office of the Secretary of State of
the State of Colorado.

                  "Fiscal  Quarter"  means any of the following  periods  within
each Fiscal Year: the period commencing on January 1 and ending on March 31; the
period  commencing  on April 1 and ending on June 30; the period  commencing  on
July 1 and ending on September  30; and the period  commencing  on October 1 and
ending on December 31.

                  "Fiscal Year" means a fiscal year with respect to the LLC,  as
required by Section 706 of the Code.

                  "Frontier  Center One" means the portion of the  Improvements,
constructed  or to be  constructed  upon the Land,  consisting  of a  one-story,
approximately  70,000  rentable square foot office  building,  commonly known as
Frontier  Center One and having a street  address  of 7001 Tower  Road,  Denver,
Colorado 80249.

                  "Frontier  Center One Financing"  shall have the meaning given
in Section 4.2(a).

                  "Frontier  Center One Project Cost" means the documented total
cost to the LLC of developing and constructing Frontier Center One in accordance
with the  Project  Development  Plan,  the Site Plan,  the Project  Design,  the
Working  Drawings,  the Project  Leases,  the DIBC  Covenants and all applicable
governmental  requirements,  including  the Net  Agreed  Value of the Land,  the
Developer's  Pre-Development  Work  Product,  the Owner's  Pre-Development  Work
Product,  the costs of the Frontier  Center One  Financing  and the  Third-Party
Financing and the amounts of the Development Fee.

                  "Frontier  Equity  Payment"  means any and all of the  amounts
payable  to  Frontier  pursuant  to  this  Agreement,   including  any  and  all
Distributions  payable to Frontier,  but in any event not including the Frontier
Incentive Payment.

                  "Frontier  Incentive  Payment" shall mean the payment,  in the
aggregate  amount  of  $200,000,  to be  paid  to  Frontier  pursuant  to and in
accordance with the Frontier Lease.

                  "Frontier  Lease"  shall mean that  certain  Lease dated on or
about the date of this  Agreement,  by and  between the LLC,  as  Landlord,  and
Frontier,  as  Tenant,  for the  leasing by  Frontier  of  approximately  51,000
rentable  square  feet of Frontier  Center One, as the same may be amended  from
time to time in accordance with the provisions of this Agreement.

                  "Frontier Lease Default" means a default by Frontier under the
Frontier  Lease in the payment of money (after notice and the  expiration of the
period of grace as provided  in Section  14.1(b) of the  Frontier  Lease) or any
other default pursuant to which the Frontier Lease is terminated.

                  "Frontier  Rent  Commencement  Date"  means the first day upon
which "Base Rent" (as defined in the Frontier Lease) becomes payable pursuant to
the Frontier Lease.

                  "Fulenwider"  means   L. C.  Fulenwider,  Inc.,   a   Colorado
corporation, or any successor thereto.

                  "GAAP"  means,  as of  any  day  of  determination,  generally
accepted accounting principles as then in effect; provided, however, that if the
use of more that one principle is then  permitted  with respect to an accounting
matter, "GAAP" shall refer to the principle then being used by the LLC.

                  "General   Contractor"   means  The  Neenan   Company  or  any
substitute therefor as determined by the Deciding Members from time to time.

                  "Improvements"   means,    collectively,    the   improvements
constructed or to be constructed by the LLC upon or in connection  with the Land
in accordance  with the Project  Development  Plan,  the Site Plan,  the Project
Design,  the Working  Drawings,  the Project Leases,  the DIBC Covenants and all
applicable governmental  requirements,  including:  (a) Frontier Center One; (b)
related utilities,  landscaping,  access driveways and lanes,  parking and other
related  improvements;  (c)  any  other  improvements,  including  any  required
off-site  improvements,  required  under  the  Site  Plan;  and  (d)  any  other
improvements required to be constructed under the Project Development Plan.

                  "Indemnitee" shall have the meaning given in Section 6.7.

                  "Initial Capital Contribution" shall have the meaning given in
Section 4.1(b).

                  "Initiating  Member"  shall have the  meaning  give in Section
9.1.

                  "Land" means the real property legally  described in Exhibit B
attached hereto, with all its appurtenances.

                  "Leasing  Agent" means  Cushman & Wakefield or any  substitute
therefor as determined by the Deciding Members from time to time.

                  "LIBOR" means the London Interbank Offered Rate as  quoted  in
The Wall Street Journal from time to time.

                  "LLC" means the limited  liability  company in  existence  and
operating pursuant hereto.

                  "LLC Assets" means, as of any date of determination,  all cash
and  other  property  whatsoever  owned by or held for the  benefit  of the LLC,
including the Project.

                  "LLC Assets Gains" or "LLC Assets Losses" mean,  respectively,
gains or losses,  computed for federal income tax purposes,  of the LLC from the
disposition  of LLC Assets,  except that such gains or losses  shall be computed
based upon the Carrying  Value of such LLC Assets  rather than upon the Adjusted
Basis thereof.

                  "LLC  Book-Tax   Disparities"   means,  with  respect  to  any
Contributed Property as of any date of determination, the difference between the
Carrying Value thereof and the Adjusted  Basis thereof.  A Member's share of LLC
Book-Tax  Disparities  shall equal the difference  between such Member's Capital
Account balance as maintained pursuant to Article V and the hypothetical balance
of such Member's  Capital  Account  computed as if such Capital Account had been
maintained in accordance with federal income tax accounting principles.

                  "LLC Interest" means,  with respect to any Member,  all of the
rights  and  interests  whatsoever  of such  Member in  connection  with the LLC
(including,  to the  extent  provided  for  herein,  such  Member's  right  to a
distributive share of income,  gains, losses,  expenses or deductions of the LLC
and/or any LLC Assets),  subject to the limitations contained in this Agreement,
and all of the obligations and liabilities of such Member in connection with the
LLC.

                  "LLC  Nonrecourse  Deductions"  means,  with  respect  to  LLC
Nonrecourse Liabilities, the amount of deductions,  losses and expenses equal to
the net  increase  during any Fiscal Year in Minimum  Gain  attributable  to LLC
Nonrecourse  Liabilities,  reduced  (but  not  below  zero) by  proceeds  of LLC
Nonrecourse  Liabilities  allocated to any increase in Minimum Gain attributable
to  LLC  Nonrecourse   Liabilities  distributed  during  such  Fiscal  Year,  as
determined in accordance with applicable Treasury Regulations.

                  "LLC Nonrecourse Liabilities" means nonrecourse liabilities of
the LLC for which no Member bears the Economic Risk of Loss.

                  "Major  Decision"  shall  have the  meaning  given in  Section
6.2(a).

                  "Major  Operating  Decision"  shall have the meaning  given in
Section 6.2(b).

                  "Manager" shall have the meaning given in Section 6.1(a).

                  "Member"  means  the  Owner  Member,   the  Developer  Member,
Frontier  and any  other  person  admitted  to the LLC as a Member  pursuant  to
Section 8.1(a).

                  "Member  Nonrecourse  Debt" means any nonrecourse  debt of the
LLC for which any Member bears the Economic Risk of Loss.

                  "Member  Nonrecourse  Deductions"  means,  with respect to any
Member Nonrecourse Debt, the amount of deductions,  losses and expenses equal to
the net increase  during any Fiscal Year in Minimum Gain  attributable to Member
Nonrecourse  Debt,  reduced  (but not below  zero) by  proceeds  of such  Member
Nonrecourse  Debt  allocated  to any increase in Minimum  Gain  attributable  to
Member  Nonrecourse  Debt  distributed  during  such  Fiscal Year to the Members
bearing the Economic  Risk of Loss for such debt,  as  determined  in accordance
with applicable Treasury Regulations.

                  "Minimum  Gain"  means  (i) with  respect  to LLC  Nonrecourse
Liabilities,  the  amount  of gain  that  would be  realized  by the LLC if in a
taxable  transaction  the LLC disposed of any LLC Assets that are subject to LLC
Nonrecourse  Liabilities in full satisfaction of such  liabilities,  computed in
accordance with applicable Treasury Regulations, and (ii) with respect to Member
Nonrecourse  Debt,  the amount of gain that would be realized by the LLC if in a
taxable  transaction  the LLC  disposed  of any LLC Assets  that are  subject to
Member  Nonrecourse  Debt  in  full  satisfaction  of  such  debt,  computed  in
accordance with applicable Treasury Regulations.

                  "Net Agreed  Value" means (i) with respect to any  Contributed
Property,  the Agreed Value thereof  reduced by any  indebtedness or liabilities
either assumed by the LLC upon the  contribution  thereof to the LLC or to which
such  property is subject upon such  contribution,  and (ii) with respect to any
property  distributed to a Member or in liquidation of the LLC, the Agreed Value
of such  property  upon the  distribution  thereof  reduced by any  indebtedness
either assumed by such Member upon such  distribution  or to which such property
is subject upon such distribution.

                  "Net Available Cash" means,  as of any date of  determination,
the  amount of cash and cash  equivalents  readily  available  to the LLC in the
accounts  of the LLC and not  needed to be  reserved  with  respect  to the then
current or  anticipated  operating or capital  requirements  or  obligations  or
liabilities  (whether matured or contingent) of the LLC,  including  reserves to
permit the  payment  of the  Frontier  Incentive  Payment as and when due and to
protect the LLC from a cash  shortage in the event of a default under any of the
Project Leases.

                  "Notice  of Intent to Sell"  shall have the  meaning  given in
Section 9.6(a).

                  "Operating  Income" and "Operating  Loss" mean,  respectively,
for any Taxable  Period,  the income or loss of the LLC for  federal  income tax
purposes, computed with the following adjustments:

                    (a)  LLC  Assets  Gains and  Losses  shall not be taken into
                         account in computing Operating Income or Loss;

                    (b)  Tax-exempt  income  of the LLC  shall be  treated,  for
                         purposes of this definition only, as gross income;

                    (c)  Expenditures   of  the   LLC   described   in   Section
                         705(a)(2)(B)  of the Code or deemed to be  described in
                         Section  705(a)(2)(B)  of the Code pursuant to Treasury
                         Regulations  under Section  704(b) of the Code shall be
                         treated,  for  purposes  of this  definition  only,  as
                         deductible expenses;

                    (d)  Notwithstanding any other provision of this definition,
                         any items  allocated  pursuant to Section  5.2(d) shall
                         not be taken into account in computing Operating Income
                         or Loss; and

                    (e)  Separately  stated  items under  Section  702(a) of the
                         Code shall be taken into account.

                  "Owner" means DIBC Hotel  Conference,  LLC, a Colorado limited
liability partnership, or any successor thereto.

                  "Owner Member Preferred Return" means an amount accrued on the
Unreturned Owner Member Preferred Equity at a rate of * per annum, compounded as
of the first day of each Fiscal Quarter, from the date of this Agreement.

                  "Owner's  Pre-Development  Work  Product"  means those certain
items set forth in Exhibit C attached hereto.

                  "Permitted  Transfer"  shall have the meaning given in Section
8.2(a).

                  "Permitted Transferee" shall have the meaning given in Section
8.2(a)(1).

                  "Primary  Designee"  shall have the  meaning  given in Section
6.6.

                  "Proceeding"    means   any   judicial,    administrative   or
arbitrational  trial,  hearing  or other  proceeding  or any  civil or  criminal
investigation as result of which a court,  arbitrator or governmental  authority
may enter a judgment,  order,  decree,  award or other determination that if not
appealed or reversed would be binding upon any person.

                  "Project"  means,  collectively,  the Land,  the  Improvements
(including Frontier Center One) and the LLC's interest in the Project Leases.

                  "Project  Design"  means the design of  Frontier  Center  One,
including the schematic design and design development documents,  as prepared by
the architect or architects for the Project or portions thereof and approved and
amended by the Deciding Members from time to time.

                  "Project  Development  Plan" means a plan,  as prepared by the
Developer  and  amended by the  Manager  and  submitted  to and  approved by the
Deciding  Members from time to time, for the  development  and  construction  of
Frontier Center One, that states the following: (i) the timetable for each phase
of the development and  construction;  (ii) a budget of all projected income and
expenses; (iii) a description of the methods of financing, both for construction
and permanent  financing,  including,  when known, the lender,  the term and the
financial  terms of any such  financing;  (iv) the names of any  architects  and
general  contractors to be used for construction of Frontier Center One; and (v)
a plan for the leasing of Frontier Center One, including the name of the leasing
agent, a schedule and pro forma rental rates and financial terms for the Project
Leases; all in such detail as the Deciding Members may reasonably  require.  The
initial Project  Development  Plan, as prepared by the Developer and approved by
the Deciding Members, is attached to this Agreement as Exhibit D.

                  "Project Leases" means,  collectively,  the Frontier Lease and
the space  leases  for the other  portions  of the  Project,  as the same may be
amended from time to time in accordance with the provisions of this Agreement.

                  "Project  Leasing  Agreement"  shall have the meaning given in
Section 6.1(b)(5).

                  "Property Management  Agreement" means the Property Management
Agreement of even date herewith between the Developer Member and the LLC, as the
same may be amended from time to time in accordance  with the provisions of this
Agreement.

                  "Property  Management  Fee"  shall have the  meaning  given in
Section 6.1(f).

                  "Purchasing  Member"  shall have the meaning  given in Section
9.2(c).

                  "Put/Call  Closing"  shall have the  meaning  given in Section
9.3(a).

                  "Put/Call  Default  Notice"  shall have the  meaning  given in
Section 9.3(b).

                  "Put/Call  Offering  Notice"  shall have the  meaning  give in
Section 9.1.

                  "Put/Call  Offering  Price"  shall  have the  meaning  give in
Section 9.2(b).

                  "Put/Call  Purchase  Price"  shall  have the  meaning  give in
Section 9.2(c).

                  "Rentable  Area" means,  with respect to Frontier  Center One,
the rentable  area as  calculated  in  accordance  with the Standard  Method for
Measuring  Floor Area in Office  Buildings  published by The Building Owners and
Managers  Association  International  and  approved  by  the  American  National
Standards Institute, Inc., on June 7, 1996.

                  "Residual  Gain" or "Residual  Loss" means any item of gain or
loss (as the case may be) of the LLC  recognized for federal income tax purposes
and resulting from any Disposition of Contributed  Property,  to the extent such
item is not allocated pursuant to Section 5.3(b)(1)(i).

                  "Responding  Member"  shall have the meaning  given in Section
9.1.

                  "Right of First Offer" shall have the meaning given in Section
9.6.

                  "Securities Act" means the Securities Act of 1933, as amended,
and, unless the context otherwise acquires, applicable regulations thereunder.

                  "Selling  Member"  shall  have the  meaning  given in  Section
9.2(c).

                  "Sharing  Ratio" means (i) with  respect to  Frontier,  twenty
five percent  (25%);  (ii) with respect to the Owner  Member,  as of the date of
determination,  seventy  five  percent  (75%)  multiplied  by  a  fraction,  the
numerator of which is the total amount of the Capital  Contributions made by the
Owner  Member   (including  the  Agreed  Value  of  the  Land  and  the  Owner's
Pre-Development Work Product and regardless of whether any amounts on account of
the Owner Member's Capital  Contributions has been returned to the Owner Member)
and the  denominator  of which is the total amount of all Capital  Contributions
made by the Owner Member and the Developer Member (including the Agreed Value of
the  Land,  the  Owner's   Pre-Development  Work  Product  and  the  Developer's
Pre-Development Work Product and regardless of whether any amounts on account of
the Owner  Member's or the Developer  Member's  Capital  Contributions  has been
returned to the Owner Member or the Developer Member), and (iii) with respect to
the  Developer  Member,  as of the date of  determination,  seventy five percent
(75%)  multiplied  by a fraction,  the numerator of which is the total amount of
the Capital  Contributions  made by the Developer  Member  (including the Agreed
Value of the Developer's  Pre-Development Work Product and regardless of whether
any amounts on account of the Developer Member's Capital  Contributions has been
returned  to the  Developer  Member) and the  denominator  of which is the total
amount of all Capital  Contributions  made by the Owner Member and the Developer
Member (including the Agreed Value of the Land, the Owner's Pre-Development Work
Product and the  Developer's  Pre-Development  Work  Product and  regardless  of
whether any amounts on account of the Owner  Member's or the Developer  Member's
Capital  Contributions  has been  returned to the Owner Member or the  Developer
Member).

                  "Site Plan" shall mean the site plan for the Land, as the same
has been  approved  and may  hereafter be amended from time to time by unanimous
Consent of the Deciding Members.

                  "Special  Allocation"  shall have the meaning given in Section
5.2(d).

                  "Taxable  Period"  means any period of time  commencing on the
first  day of any  Fiscal  Quarter  and  ending  on the last  day of any  Fiscal
Quarter, subject to the Termination Date.

                  "Tax Matters  Member"  shall have the meaning given in Section
7.3(c).

                  "Termination  Date"  means  the  date  upon  which  the LLC is
dissolved and liquidated pursuant to Article X.

                  "Third-Party  Financing"  shall  have  the  meaning  given  in
Section 4.2(b).

                  "Transfer" shall have the meaning given in Section 8.2(a).

                  "Treasury  Regulations"  mean the  regulations  issued  by the
United States Department of the Treasury under the Code, as now in effect and as
hereafter amended, and any successor regulations.

                  "Unpaid  Developer Member Preferred Return" means, as the date
of measurement,  the amount of the Developer  Member  Preferred  Return less the
aggregate  amount of  distributions  made to the  Developer  Member  pursuant to
Section 5.4(c)(1).

                  "Unpaid Owner Member  Preferred  Return" means, as of the date
of  measurement,  the  amount  of the Owner  Member  Preferred  Return  less the
aggregate amount of  distributions  made to the Owner Member pursuant to Section
5.4(c)(1).

                  "Unreturned  Developer Member  Preferred  Equity" means, as of
the date of  measurement,  the amount of the Net Agreed  Value of the  Developer
Member's Initial Capital Contribution, plus the amount of any Additional Capital
Contributions  made by the Developer Member pursuant to Section 4.1 and less the
aggregate  amount of  Distributions  made to the  Developer  Member  pursuant to
Section 5.4(c)(2).

                  "Unreturned  Owner Member  Preferred  Equity" means, as of the
date of  measurement,  the amount of the Net Agreed Value of the Owner  Member's
Initial  Capital  Contribution,  plus  the  amount  of  any  Additional  Capital
Contributions  made by the Owner  Member  pursuant  to Section  4.1 and less the
aggregate amount of  Distributions  made to the Owner Member pursuant to Section
5.4(c)(2).

                  "Unsolicited  Offer"  shall have the meaning  given in Section
9.6(a).

                  "Working  Drawings"  means  final  architectural  construction
working  drawings for the  construction  of Frontier Center One, as the same may
hereafter be approved and amended from time to time by the Deciding Members.

1.2 Interpretation.

(a)  Captions and Meanings. Captions are included for convenience only and shall
     not be used to interpret this Agreement. Words and pronouns shall be deemed
     to include  any gender and number as the context  may  require.  References
     herein to Articles,  Sections,  Schedules and Exhibits, except as otherwise
     specifically  indicated,   are  to  the  corresponding  provisions  hereof.
     References to "hereof,"  "herein" and  "hereunder"  and other  compounds of
     "here" refer to this  Agreement  in its  entirety.  References  to "person"
     include any natural  person,  corporation,  trust,  estate,  joint venture,
     partnership, limited liability company, association, custodian, nominee, or
     other entity  recognized as having  existence  under any applicable law and
     such  person's  successors  and permitted  assigns.  Reference to property,
     unless otherwise limited,  shall include all property,  whether tangible or
     intangible,   real,   personal  or  mixed,   including  the  Land  and  the
     Improvements.  References to "include" and  "including"  shall be construed
     without limitation. References to "default" with respect to any party shall
     be  deemed  to  include  any  breach  of any  representation,  warranty  or
     obligation  of such  party,  whether or not such  breach is  intended by or
     occurs  with  the  knowledge  of such  party.  "Will"  means  "shall,"  and
     vice-versa, as the context may require.

(b)Extension  to  Business  Day.  If any  action  (including  the  making of any
     payment) in connection herewith must be taken on a particular day or if the
     failure to take any action on a particular  day would operate  hereunder as
     an  election  among  alternatives  or  result in the lapse or waiver of any
     right and if such day is not a Business  Day,  the time  within  which such
     action may be taken shall be extended to the next Business Day.

(c)  Monetary  Amounts.  All monetary  amounts to be determined  hereunder or in
     connection  herewith shall be determined in dollars,  and all amounts to be
     paid hereunder or in connection herewith shall be paid in dollars.  For the
     purposes of this  Agreement,  "dollars"  means  legal  tender of the United
     States of America.

                                   ARTICLE II

                             FORMATION AND EXISTENCE

2.1 Formation; Preservation. The Members hereby confirm and ratify the formation
of the LLC as a limited  liability  company  pursuant to the Act. This Agreement
(i)  establishes  rights,  obligations,  liabilities  and  relationships  of the
Manager and the Members  with  respect to the LLC and with respect to each other
in connection  with the LLC and (ii) shall govern  matters with respect  thereto
except to the extent the Act  specifically  contains  provisions that may not be
altered by an operating agreement. The Manager has effected the formation of the
LLC by  preparing,  executing and filing the Articles of  Organization  with the
Filing Office.  The Manager shall prepare,  execute and file all such amendments
and other  documents in connection with any of the foregoing as may be necessary
to  reflect  any  change in the  information  contained  therein or herein or to
continue and preserve the  existence of the LLC as a limited  liability  company
under the Act, in each such case in accordance with applicable law.

2.2 Name;  Transacting  Business.  The name of the LLC,  and under which the LLC
shall  conduct its business,  is "Frontier  Center One LLC." The business of the
LLC may be conducted  under any other name as may be  designated  by the Manager
upon the unanimous  Consent of the Deciding Members and as permitted by the Act.
If the law or any jurisdiction in which the LLC transacts  business so requires,
the Manager shall  prepare,  execute and file any  certificate or other document
required to qualify the LLC as a foreign limited liability company authorized to
transact  business  therein  and any  assumed  or  fictitious  name  certificate
required to transact business therein.

2.3 Place of Business.  The principal  office of the LLC shall be 300 West Plaza
Drive,  Highlands  Ranch,  Colorado  80126,  or such other place in the State of
Colorado as the Manager  may  designate  from time to time upon thirty (30) days
prior  notice to each  Member.  The LLC shall  have such  other  offices  as the
Manager may establish from time to time.

2.4 Registered Office and Registered Agent. The LLC's initial  registered office
in the State of Colorado shall be at the office of its  registered  agent at 300
West Plaza Drive,  Highlands Ranch,  Colorado 80126, and the name of its initial
registered  agent at such address shall be Jeffrey H.  Donelson.  The registered
office or  registered  agent,  or both,  in the State of Colorado may be changed
from time to time by filing the address of the new registered office or the name
of the new registered agent, as the case may be, with the Filing Office pursuant
to the Act. The LLC shall  appoint  registered  agents and  maintain  registered
offices in other jurisdictions as may be required by law.

2.5 Term. The existence of the LLC commenced on the date upon which the Articles
of  Organization  were  filed  with  the  Filing  Office,   and  the  LLC  shall
continuously exist until its dissolution and liquidation pursuant to Article X.

                                  ARTICLE III

                               PURPOSES AND POWERS

3.1 Purposes.  The purposes of the LLC are to acquire,  own,  develop,  improve,
market,  operate,  lease, convey and sell the Land and the Project, or interests
therein,  and perform all activities  incidental thereto,  and to enter into any
lawful transactions and engage in any lawful activities  (including borrowing or
investing  money,   issuing  guaranties  and  indemnities  and  granting  liens,
mortgages,  deeds of trust and other  security  interests)  as may be necessary,
incidental or convenient in connection therewith.

3.2  Powers.  The LLC  shall  have the  power to do any and all acts and  things
whatsoever for the  furtherance and  accomplishment  of the purposes of the LLC,
except to the extent prohibited under the Act or any other applicable law.

                                   ARTICLE IV

                    CAPITAL CONTRIBUTIONS; LOANS; GUARANTEES

4.1 Capital Contributions.

(a)  General.  No Member  shall be  entitled  or  obligated  to make any Capital
     Contribution except as specifically  provided herein.  Frontier shall never
     be required to make any Capital Contribution.

(b)  Initial   Capital   Contributions.   Set  forth   below  are  the   Capital
     Contributions (the "Initial Capital Contributions") each Member has made as
     of the date hereof:

                  Initial Capital                               Net Agreed
Member            Contribution                                    Value
------            ------------                                  -----------

Owner             The Land and                                  $ *
Member            the Owner's Pre-Development
                  Work Product

Developer         The Developer's Pre- Development              $ *
Member            Work Product and Cash

Frontier                         *                              $ *
Member

Total                                                           $ *

(c)  Additional Capital Contributions. If from time to time the cash contributed
     by the Developer Member as part of its Initial Capital Contribution and the
     proceeds of the Frontier Center One Financing and the Third-Party Financing
     are not  available  or  sufficient  to fund the cash needs of the LLC,  the
     Developer   Member  shall  provide  such  capital  as  Additional   Capital
     Contributions;   provided,  however  the  maximum  amount  required  to  be
     contributed  by the Developer  Member shall in no event exceed $*, plus any
     contribution  required to be made by the Developer Member on account of the
     Frontier Incentive Payment pursuant to Section 4.1(d).

(d)  Additional  Contributions for Frontier Incentive Payment.  To the extent at
     any time the LLC has  insufficient  funds,  taking  into  account  expected
     receipts and other  obligations  of the LLC, as  determined by the Deciding
     Members in good faith,  to pay any  installment  of the Frontier  Incentive
     Payment   when  due,  the  Manager   shall   request   Additional   Capital
     Contributions from the Owner Member and the Developer Member, and the Owner
     Member   and  the   Developer   Member   shall  make   Additional   Capital
     Contributions,  within * days after each request therefor from the Manager,
     as follows:  the Owner Member shall  contribute * and the Developer  Member
     shall contribute * of the amounts of the additional amount necessary to pay
     such installment of the Frontier Incentive Payment when due.

(e)  Interest on and Return of Capital.  Except as specifically provided herein,
     no Member shall be  permitted  to receive any interest  with respect to any
     Capital  Contribution  or any Capital  Account or any return of any Capital
     Contribution.

4.2  Project Financing.

(a)  Frontier  Center  One  Financing.  The  Developer  Member  shall  cause  an
     Affiliate of the Developer Member to provide  financing for the development
     and   construction  of  Frontier  Center  One  (the  "Frontier  Center  One
     Financing"), in the amount of * of the Frontier Center One Project Cost, as
     determined  by the  Manager,  but in no event,  without  the Consent of the
     Developer  Member,  more than $*. Interest on the principal  balance of the
     Frontier  Center One Financing from time to time shall accrue at a floating
     rate equal to LIBOR plus 250 basis points,  and shall be paid monthly.  All
     accrued and unpaid  interest and principal  shall be payable * months after
     the initial funding of the Frontier Center One Financing and may be renewed
     for an  additional  * months upon  notice to the lender  given prior to the
     initial due date of the  Frontier  Center One  Financing.  Upon the initial
     funding of the Frontier Center One Financing,  the LLC shall pay the lender
     an origination fee, in the amount of $*, and a loan fee, in the amount of *
     of the maximum  principal amount of the Frontier Center One Financing.  The
     LLC shall pay the lender an  extension  fee of * of the  maximum  principal
     amount of the  Frontier  Center One  Financing if the loan is renewed for a
     second * month  period,  payable  upon  renewal.  The  Frontier  Center One
     Financing  shall be  recourse  to the LLC and the LLC  Assets  and shall be
     secured  by a first  deed of trust on the  Project.  The Owner  Member  and
     Fulenwider shall guaranty * of any loss incurred by the lender in the event
     of a  default,  provided  the lender  disposes  of the  collateral  for the
     Frontier Center One Financing in a commercially  reasonable  manner and any
     loss based upon any late payment charges, pre-payment penalties or interest
     at a rate greater  than the rate stated above in this Section  4.2(a) shall
     not be  guaranteed  by  Fulenwider.  In all other  respects,  including the
     disbursement of the proceeds,  the Frontier Center One Financing shall have
     terms and  conditions  similar  to those in  connection  with  construction
     financing  from  national  banks with offices in Denver.  In no event shall
     Frontier be liable for the Frontier  Center One  Financing.  The  Developer
     Member, at its option,  may obtain the Frontier Center One Financing from a
     third-party  lender,  not an Affiliate of the Developer  Member, so long as
     the terms of such  third-party  financing do not make it more costly to the
     LLC than as provided in this Section 4.2(a).

(b)  Third-Party  Financing.  The Manager shall use reasonable efforts to obtain
     permanent  financing for Frontier Center One, on the best available  market
     terms  and  conditions,  from  one  or  more  third-party  lenders,  not an
     Affiliate of any Member (the  "Third-Party  Financing").  The Manager shall
     use  reasonable  efforts  to obtain  all such  Third-Party  Financing  on a
     non-recourse basis, with a Permitted Transfer being permitted by the lender
     without a change in the terms and conditions of the Third-Party  Financing.
     If,  however,  any  lender,  as  a  condition  to  making  the  Third-Party
     Financing,  shall require that the same be recourse,  or that a guaranty of
     the same be made (i) the  Developer  Member and the Owner Member each shall
     accept such recourse liability and agree to make such guaranty, and (ii) to
     the extent  required by such lender (A) the  Developer  Member  shall cause
     Developer  to  accept  such  recourse  liability  and  agree  to make  such
     guaranty;  provided,  however (x)  Fulenwider  has accepted  such  recourse
     liability  or agreed to make such  guaranty to the extent  required by this
     Section 4.2(b),  (y) the liability of the Developer shall at no time exceed
     the  lesser  of * of  the  total  outstanding  amount  of  the  Third-Party
     Financing and * of  Fulenwider's  maximum  liability  under the Third-Party
     Financing, and (z) the other terms and conditions of any recourse liability
     or guaranty of the  Developer  shall be  substantially  the same as that of
     Fulenwider;  and (B) the Owner Member shall cause Fulenwider to accept such
     recourse liability and agree to make such guaranty;  provided,  however (x)
     Developer  has  accepted  such  recourse  liability  or agreed to make such
     guaranty to the extent required in this Section  4.2(b),  (y) the liability
     of  Fulenwider  shall  at no  time  exceed  the  lesser  of * of the  total
     outstanding  amount of the  Third-Party  Financing and * of the Developer's
     maximum liability under the Third-Party Financing,  and (z) the other terms
     and conditions of any recourse liability or guaranty of Fulenwider shall be
     substantially the same as that of the Developer. In no event shall Frontier
     be liable for the Third-Party Financing.

4.3 Other Loans.  Except as otherwise  expressly  provided  herein,  none of the
Manager,  any Member or any  Affiliate  of any  thereof  shall be  permitted  or
obligated to advance any funds or otherwise make any loan to the LLC except upon
such terms and  conditions as to which the Deciding  Members  shall  unanimously
Consent.  Any advance or loan made by the Manager,  a Member or Affiliate of the
Manager or a Member  shall be on terms and  conditions  no less  favorable  than
could  reasonably  be obtained from a person that is not the Manager or a Member
or an Affiliate of any thereof based solely upon the credit of the LLC under the
then existing  circumstances.  In no event shall Frontier be liable for any such
advance or loan,  or be  obligated  to advance any funds to the LLC or otherwise
make any loans to the LLC.  If,  without  the  prior  unanimous  Consent  of the
Deciding Members, a loan or advance not otherwise provided for herein is made to
the LLC by the Manager or a Member,  no such loan or advance  shall  entitle the
lending or advancing person to any increase in its compensation, Capital Account
balance or  interest in the LLC's  profits,  losses or  distributions  or to the
payment of any fee,  interest or other  consideration for the use of such funds.
Except  as  otherwise  specifically  provided  in  this  Agreement,  only by the
unanimous  Consent of the Deciding Members at the time that a loan or advance is
made to the LLC shall any such loan or  advance  be made a debt due from the LLC
to such lending or advancing person repayable as to principal or interest out of
the LLC  Assets  and then only upon such  terms and  conditions  as to which the
Deciding  Members  shall  unanimously  Consent.  In no event shall any Member be
personally  liable for such loan and the sole recourse of the person making such
loan shall be to the LLC and the LLC Assets.

4.4 Guarantees,  Indemnities,  Etc. Except as specifically provided herein, none
of the Manager,  the Members or any  Affiliate of any thereof shall be obligated
to  guarantee  or  otherwise  give  any  assurance  for the  performance  of any
obligation  or the  satisfaction  of any  liability of the LLC, to indemnify any
person with  respect  thereto or to provide any  collateral  securing any of the
foregoing.

                                   ARTICLE V

                  CAPITAL ACCOUNTS; ALLOCATIONS; DISTRIBUTIONS

5.1 Capital Accounts Generally.

(a)Each Member shall have a single,  separate Capital  Account,  and the Manager
     shall maintain each Capital Account in accordance with Treasury Regulations
     Sections 1.704-1(b)(2)(iv) and 1.704-2. Consistent therewith, each Member's
     Capital Account shall be:

     (1)  credited  with (i) the amount of cash and the Net Agreed  Value of any
          property  contributed to the LLC by such Member and (ii) all Operating
          Income and LLC Assets Gains in accordance with this Agreement; and

     (2)  debited  with  (i) all  Operating  Losses  and LLC  Assets  Losses  in
          accordance with this Agreement and (ii) the amount of cash and the Net
          Agreed  Value of any  property  distributed  by the LLC to such Member
          pursuant to Section 5.4 or Section 10.2.

(b)  No  Capital  Account  shall  be  decreased  to  reflect  any   Distribution
     (including a deemed liquidating distribution under Section 708 of the Code)
     of any  property  other  than cash  without  first  adjusting  all  Capital
     Accounts to reflect the manner in which the unrealized  income,  gain, loss
     and deduction inherent in such property (if unreflected in Capital Accounts
     theretofore) would be allocated among all Capital Accounts as if there were
     then a taxable Disposition of such property for the greater of (i) the fair
     market value  thereof and (ii) the amount of any  nonrecourse  indebtedness
     secured thereby.

(c)  Except as  specifically  provided  to the  contrary  herein,  whenever  any
     determination  of any Capital  Account is made,  such  determination  shall
     first give effect to all allocations pursuant to Section 5.2 and all actual
     or deemed Capital Contributions and Distributions made theretofore.

5.2  Allocations  for Book  Purposes.  The Manager  shall  allocate all items of
income,  gain, loss and deduction among Capital Accounts for each Taxable Period
as follows:

(a)  Operating Income and Loss.  Subject to Section 5.2(d),  Operating Income or
     Operating Loss shall be allocated to the Deciding  Members in proportion to
     each  Deciding  Member's  Sharing  Ratio as of the last day of such Taxable
     Period.

(b)  Allocations of Gains.  Subject to Section 5.2(d), LLC Assets Gains shall be
     allocated:

     (1)  first, to the extent any Member has a negative  balance in its Capital
          Account, to the extent of such negative balances, pari passu;

     (2)  second,  to the Owner Member until the Owner Member's  Capital Account
          equals the Unpaid Owner Member  Preferred  Return and to the Developer
          Member until the Developer  Member's Capital Account equals the Unpaid
          Developer Member Preferred Return, pari passu;

     (3)  third,  to the Owner Member until the Owner Member's  Capital  Account
          equals the sum of the Unreturned Owner Member Preferred Equity and the
          Unpaid Owner Member Preferred Return and to the Developer Member until
          the Developer  Member's  Capital  Account equals the sum of Unreturned
          Developer  Member  Preferred  Equity and the Unpaid  Developer  Member
          Preferred Return, pari passu; and

     (4)  thereafter,  in proportion  to each  Member's  Sharing Ratio as of the
          date of allocation.

(c)  Allocations of Losses.  Subject to Section 5.2(d),  LLC Assets Losses shall
     be allocated:

     (1)  to the Owner Member until the Owner  Member's  Capital  Account equals
          the sum of the Unreturned Owner Member Preferred Equity and the Unpaid
          Owner  Member  Preferred  Return,  to the  Developer  Member until the
          Developer  Member's  Capital  Account equals the sum of the Unreturned
          Developer  Member  Preferred  Equity and the Unpaid  Developer  Member
          Preferred  Return,  and to Frontier until the Frontier Capital Account
          equals zero, pari passu;

     (2)  to the Owner Member until its Capital  Account equals the Unpaid Owner
          Member  Preferred Return and to the Developer Member until its Capital
          Account equals the Unpaid  Developer  Member  Preferred  Return,  pari
          passu;

     (3)  to the Owner  Member and the  Developer  Member  until  their  Capital
          Accounts equal zero, pari passu; and

    (4)  thereafter,  in proportion  to each  Member's  Sharing Ratio as of the
          date of allocation.

(d)  Special  Allocations.  Notwithstanding  any other provision of this Section
     5.2,  the  Manager   shall  make  the   following   allocations   ("Special
     Allocations"):

     (1)  Minimum  Gain  Chargeback.  If at any time during any  Taxable  Period
          there  is  a  net  decrease  in  Minimum  Gain   attributable  to  LLC
          Nonrecourse Liabilities,  items of LLC income and gain for such period
          (and,  if  necessary,  subsequent  periods)  shall  be  determined  in
          accordance  with  Treasury  Regulations  Sections   1.704-2(f)(6)  and
          1.704-2(j)(2)  and  allocated  as quickly as  possible  to the Capital
          Account of each Member having a share of the Minimum Gain attributable
          to LLC Nonrecourse Liabilities,  in proportion to and to the extent of
          such Member's  share of such net decrease.  This paragraph is intended
          to comply with the minimum  gain  chargeback  requirement  in Treasury
          Regulations  Section 1.704-2(f) and shall be interpreted  consistently
          therewith.

     (2)  Member  Minimum  Gain  Chargeback.  If at any time  during any Taxable
          Period  there is a net decrease in the Minimum  Gain  attributable  to
          Member  Nonrecourse Debt, items of LLC income and gain for such period
          (and,  if  necessary,  subsequent  periods)  shall  be  determined  in
          accordance  with  Treasury  Regulations  Sections   1.704-2(i)(4)  and
          1.704-2(j)(2)  and  allocated  as quickly as  possible  to the Capital
          Account of each Member having a share of the Minimum Gain attributable
          to Member Nonrecourse Debt, in proportion to and to the extent of such
          Member's  share of such net  decrease.  This  paragraph is intended to
          comply  with  the  partner  minimum  gain  chargeback  requirement  in
          Treasury  Regulations  Section  1.704-2(i)  and  shall be  interpreted
          consistently therewith.

     (3)  Qualified Income Offset.  If at any time during any Taxable Period any
          Member   unexpectedly   receives  any   adjustments,   allocations  or
          distributions    described    in    Treasury    Regulations    Section
          1.704-1(b)(2)(ii)(d)(4),  (5) or  (6)  and  if  any  such  adjustment,
          allocation  or  distribution  would  result in or  increase a negative
          balance in such Member's Adjusted Capital Account as of the end of any
          Fiscal  Year,  items of LLC income and gain shall be allocated to such
          Member in an amount and manner  sufficient to eliminate (to the extent
          required by the foregoing Treasury  Regulations) such negative balance
          as quickly as possible;  provided that an allocation  pursuant to this
          paragraph  shall be made only if and to the extent that such  Adjusted
          Capital  Account  would  have  a  negative  balance  after  all  other
          allocations provided for in this Article V have been made.

     (4)  Member Nonrecourse  Deductions.  Member Nonrecourse Deductions for any
          Taxable  Period  shall  be  allocated  in  accordance   with  Treasury
          Regulations Section  1.704-(2)(i)(1) among Capital Accounts of Members
          bearing the Economic  Risk of Loss with respect to Member  Nonrecourse
          Debt to which such Member Nonrecourse Deductions are attributable.

     (5)  Code Section 754 Adjustments.  To the extent that an adjustment to the
          Adjusted  Basis of any LLC Asset under Section 734(b) or 743(b) of the
          Code is required to be taken into account in  determining  any Capital
          Account pursuant to Treasury Regulations Section 1.704-1(b)(2)(iv)(m),
          (i) the amount of such  adjustment  shall be treated as (x) an item of
          gain if such  adjustment  increases such Adjusted Basis or (y) an item
          of loss if such  adjustment  decreases such Adjusted  Basis,  and (ii)
          such gain or loss shall be allocated  to Capital  Accounts in a manner
          consistent with the requirements of such Treasury  Regulations for the
          adjustment thereof.

     (6)  Curative Allocations.  Notwithstanding  Section 5.2(d)(1) through (5),
          each such Special Allocation under such provisions shall be taken into
          account in allocating among Capital Accounts Net Income,  Net Loss and
          items of LLC income,  gain,  loss and deduction for the Fiscal Year in
          which such Special  Allocation  occurs and each subsequent Fiscal Year
          so that, to the extent possible,  the net amount of income gain, loss,
          deduction and other items  allocated to each Capital  Account shall be
          equal to the net amount that would have been allocated to such Capital
          Account if such Special Allocation had not been made.  Notwithstanding
          the  preceding   sentence,   (i)  allocations  of  Member  Nonrecourse
          Deductions shall not be taken into account under this paragraph except
          to the extent of any net  decrease  in Minimum  Gain  attributable  to
          Member  Nonrecourse  Debt,  and (ii)  allocations  of LLC  Nonrecourse
          Deductions shall not be taken into account under this paragraph except
          to the extent of any net decrease in Minimum Gain  attributable to LLC
          Nonrecourse Liabilities.

     (7)  Excess  Nonrecourse  Liabilities.  Solely for purposes of  determining
          each  Member's   proportionate   share  of  the  "excess   nonrecourse
          liabilities"  of the LLC within the  meaning of  Treasury  Regulations
          Section 1.752-3(a)(3), each Member's interest in the Net Income of the
          LLC shall be its balance in its Capital Account, as adjusted from time
          to time.

     (8)  Allocations Relating to the Frontier Incentive Payment. Allocations of
          Operating  Income and  Operating  Loss shall be  allocated so that all
          payments made by the LLC on account of the Frontier Incentive Payment,
          to the extent of the amount of the  Additional  Capital  Contributions
          made  pursuant  to Section  4.1(d)  shall be  allocated * to the Owner
          Member and * to the Developer Member.

     (9)  Allocations  Relating to Frontier  Operating  Distributions.  Frontier
          shall be allocated  an amount of gross rental  income from the Project
          equal to the amount of the Distributions  made to Frontier pursuant to
          Section 5.4.

5.3 Allocations for Tax Purposes.

(a)  Except as otherwise  provided herein,  the Manager shall for federal income
     tax purposes allocate among Capital Accounts (i) each item of income, gain,
     loss or  deduction in the same manner as the  corresponding  item of "book"
     income,  gain,  loss or deduction is allocated  pursuant to Section 5.2 and
     (ii) each tax  credit  in the same  manner as the  receipt  or  expenditure
     giving rise thereto is allocated pursuant to Section 5.2.

(b)  In an attempt to eliminate LLC Book-Tax Disparities,  the Manager shall for
     federal  income  tax  purposes  allocate  items  of  income,   gain,  loss,
     depreciation, amortization and cost recovery deductions as follows:

     (1)  (i) In the  case of  Contributed  Property,  such  items  attributable
          thereto  shall be  allocated  among  Capital  Accounts  in the  manner
          provided  under Section 704(c) of the Code that takes into account the
          variation  between the Agreed  Value  thereof and the  Adjusted  Basis
          thereof  at the time of  contribution,  and (ii) any item of  Residual
          Gain or Residual Loss  attributable  to Contributed  Property shall be
          allocated   among   Capital   Accounts  in  the  same  manner  as  the
          corresponding  item of "book"  gain or loss is  allocated  pursuant to
          Section 5.2.

          (2)  To correct  distortions created by the "ceiling rule" of Treasury
               Regulations  Section  1.704-3(b)(1),  to the extent  permitted or
               required by Treasury  Regulations,  the Manager may make remedial
               allocations of LLC tax items as provided in Treasury  Regulations
               Section  1.704-3(d) to effect the purposes of Sections 704(b) and
               704(c) of the Code by  allocating  to the Capital  Account of any
               Member that  contributed  property other than cash to the LLC the
               tax  consequences  of any  gain  or  loss  attributable  to  such
               property for any period prior to the contribution thereof.

5.4  Distributions.  Distributions,  other than distributions made following the
sale or refinancing of Frontier Center One or otherwise upon the dissolution and
liquidation  of the LLC,  which shall be made in  accordance  with Section 10.2,
shall be made as determined by the Deciding Members from time to time and in any
event as follows:

(a)  No Distribution shall be made other than in cash.

(b)  Except to the extent  prohibited by applicable  law, any other agreement to
     which the LLC is a party or any  provision  hereof,  the  Deciding  Members
     shall,  on or before * of each calendar  year,  determine the Net Available
     Cash,  and cause the Manager to notify each Member  thereof and declare and
     cause  the  LLC  to  make  Distributions  of the  Net  Available  Cash,  as
     determined  by  unanimous  Consent  of the  Deciding  Members,  in  amounts
     sufficient  (or such lesser  amounts as the Deciding  Members in good faith
     determine,  if the  Deciding  Members  in good  faith  determine  there  is
     insufficient  Net Available Cash to distribute  amounts so sufficient)  for
     each  Deciding  Member  (or  their  beneficial   owners)  to  pay  its  tax
     liabilities  which arise in respect of its LLC Interest,  determined as set
     forth below by such Deciding Members in good faith,  prior to the making of
     any other  Distributions  pursuant to this Section 5.4. Any funds  actually
     distributed  to a Deciding  Member  pursuant to this  Section  5.4(b) shall
     reduce the amount such Deciding Member would otherwise  receive pursuant to
     Sections 5.4 and Section 10.2.  For purposes of this Section  5.4(b),  each
     Deciding  Member's tax liability for any taxable year shall be deemed equal
     to (i) its  cumulative  share of net  taxable  income  and gain  (that  is,
     taxable income net of taxable losses),  of the LLC for such year multiplied
     by (ii) the sum of the highest rate of Federal and the State of  California
     and/or the State of Colorado  (as  applicable)  tax imposed on the Deciding
     Member for such year with  respect to items of the same  character  as such
     net taxable income and gain, taking into account the deductibility of state
     and local  income  taxes for Federal  income tax purposes and based on such
     assumptions  as  the  Deciding  Members  determine  in  good  faith  to  be
     appropriate. In no event shall any Member be required or expected to make a
     Capital  Contribution  then or at any  other  time  to  fund  Distributions
     pursuant to this Section  5.4(b).  If, at the time of the  dissolution  and
     liquidation  of the  LLC,  it is  determined  that a  Deciding  Member  has
     received  Distributions as a result of this Section 5.4(b) in excess of the
     amount  that such  Deciding  Member  would have  otherwise  received  under
     Section 5.4 and is entitled to receive under Section 10.2, then such Member
     shall  promptly  contribute  such  excess  amount  in cash to the LLC to be
     distributed in accordance with Section 10.2.

(c)  Distributions shall only be made in the following order and priority:

     (1)  first,  to the Owner Member an amount equal to the Unpaid Owner Member
          Preferred  Return and to the  Developer  Member an amount equal to the
          Unpaid Developer Member Preferred Return, pari passu;

     (2)  the balance, to the Owner Member, the Developer Member and Frontier in
          accordance with their respective  Sharing Ratios as of the date of the
          distribution.

(d)  Upon the  unanimous  Consent of the  Members,  the Manager  shall take such
     actions  (including any declaration,  revocation,  withholding or making of
     any Distribution)  with respect to Distributions as the Members may direct.

5.5 Negative  Capital  Accounts.  Notwithstanding  any  provision  hereof to the
contrary,  no Member shall be obligated to  contribute  any amount to the LLC in
restoration  of a negative  balance (if any) existing in such  Member's  Capital
Account upon the dissolution and liquidation of the LLC.

                                   ARTICLE VI

                                   MANAGEMENT

6.1 Manager

(a)  Generally;  Certain  Powers.  Management  of the LLC  shall be  vested in a
     manager pursuant to the Act (the "Manager"),  licensed to transact business
     in the State of Colorado and such other  jurisdictions where such licensing
     is required under  applicable  law. The Manager shall have on behalf and in
     the name of the LLC full and exclusive  power and authority,  and the duty,
     to manage and control the LLC's business and affairs and the LLC Assets, to
     make all  decisions  regarding  the same and to perform  any and all lawful
     acts incidental to the accomplishment of the purposes of the LLC; provided,
     however,  that the Manager (i) shall not, without the unanimous  Consent of
     the Members,  take or cause the LLC to take any Major Decision,  (ii) shall
     not, without the unanimous Consent of the Deciding  Members,  take or cause
     the LLC to take any Major Operating Decision,  and (iii) upon the unanimous
     Consent and at the direction of the Deciding Members, subject to clause (i)
     above, shall take on behalf and in the name of the LLC any action specified
     by the Deciding Members.  Without limiting the generality of the foregoing,
     the Manager shall have the power and authority on behalf and in the name of
     the LLC to do any of the following,  in each case in the ordinary course of
     the LLC's  business,  subject to the  provisions  above  relating  to Major
     Decisions  and Major  Operating  Decisions  and  otherwise to the terms and
     conditions of this Agreement:

     (1)  manage the  operations  and affairs of the LLC, and receive and expend
          LLC funds;

     (2)  purchase,  lease, license or otherwise acquire property and any rights
          therein or thereto  (including  any  rights of first  refusal,  option
          rights or similar rights) and hold,  own,  develop,  manage,  operate,
          improve,  use or  otherwise  deal  with any  property  and any  rights
          therein or thereto;

     (3)  Dispose  of or grant any  interest  in  (whether  by lease,  easement,
          covenant,  condition  or  restriction  or  any  declaration  or  other
          document in respect  thereof) any  property and any rights  therein or
          thereto  (including  any  rights of first  refusal,  option  rights or
          similar rights);

     (4)  enter into agreements  (including purchase and sale contracts,  option
          agreements,   leases,   loan   agreements,    consulting   agreements,
          construction   contracts,   land  use  or  zoning  agreements,   water
          management   agreements,   easements,   declarations   of   covenants,
          conditions or restrictions and subdivision plats);

     (5)  borrow  money  from  banks and  other  financial  institutions  and in
          connection therewith hypothecate, mortgage, pledge, grant any security
          interest in or otherwise encumber any LLC Assets,  issue guarantees or
          other  assurances of payment  thereof and  performance  of obligations
          relating  thereto  and  agree  to  such  other  terms  and  conditions
          (including  any recourse  liability or  confession of judgment) as any
          lender may require;

     (6)  invest  and  reinvest  temporarily  (whether  directly  or  through  a
          financial  institution)  any LLC  funds  in such  investments  as time
          deposits,  short-term  governmental  obligations,   commercial  paper,
          repurchase agreements and money-market mutual funds;

     (7)  post  security  deposits,  bonds or similar  assurances  of payment or
          performance  with, or advance or otherwise  lend any LLC funds to, any
          person (including  contractors,  suppliers,  trades persons or service
          providers);

     (8)  provide bonds, letters of credit, guarantees,  warranties, indemnities
          and other assurances of any person's performance;

     (9)  open, make deposits to, drafts upon and withdrawals from, and maintain
          accounts with, any bank,  investment  banking firm or other  financial
          institution  and designate one or more persons as signatories for such
          accounts;

     (10) enforce or forbear in the enforcement of, or compromise,  discharge or
          settle, any obligation of any person;

     (11) engage accountants,  attorneys, consultants and other professionals to
          perform  services,  establish the duties and compensation  thereof and
          terminate any of the foregoing;

     (12) engage brokers, finders, leasing agents, marketing representatives and
          similar  persons,  establish the duties and  compensation  thereof and
          terminate any of the foregoing;

     (13) purchase  liability,  property,  errors and  omissions,  directors and
          officers, and other insurance coverages;

     (14) institute, prosecute, defend or settle any Proceeding; and

     (15) execute  and/or  deliver  on  behalf  and in the  name  of the LLC any
          documents (including checks, drafts, notes and other instruments; loan
          agreements,   deeds  of  trust,   security  agreements  and  financing
          statements;  and  purchase  and sale  agreements,  option  agreements,
          assignments  and other  documents  providing  for the  acquisition  or
          Disposition of LLC Assets) relating to the business of the LLC.

(b)  Manager's Specific Duties. The Manager shall perform the following duties:

     (1)  Management Services. The Manager shall manage the business and affairs
          of the LLC pursuant to this Agreement and the Act.

     (2)  Development Services. The Manager shall update the Project Development
          Plan from time to time as  appropriate,  and cause to be prepared  and
          amended from time to time,  when and as appropriate  under the Project
          Development  Plan (i) the Site Plan, (ii) the Project Design and (iii)
          the Working Drawings for the Deciding Members'  approval.  The Manager
          shall develop the Project in accordance  with the Project  Development
          Plan, the Site Plan, the Project  Design,  the Working  Drawings,  the
          Project  Leases,  the DIBC Covenants and all  applicable  governmental
          requirements,  devoting such time,  effort and resources  necessary to
          perform such  obligations in an efficient,  thorough and  businesslike
          manner.

     (3)  Construction of the  Improvements.  The Manager shall cause the LLC to
          (a) construct Frontier Center One pursuant to a construction  contract
          with the  General  Contractor  on such  terms  and  conditions  as the
          Manager shall  determine,  and (b)  construct  all other  improvements
          pursuant  to  contracts  with  contractors  as  required  by,  and  in
          accordance with, the Project Development Plan.

     (4)  Property Management Services.  From and after the time Frontier Center
          One is substantially complete (or, if earlier, the date upon which any
          tenant  takes  occupancy of any portion of the  Project),  the Manager
          shall  manage,  or cause an  Affiliate  of the Manager to manage,  the
          Project  as  property  manager  pursuant  to the  Property  Management
          Agreement.

     (5)  Project  Leasing  Services.  The Manager shall enter into an exclusive
          leasing agreement with the Leasing Agent and renewals and replacements
          thereof  (the  "Project  Leasing   Agreement"),   on  such  terms  and
          conditions as the Manager may determine  from time to time,  and shall
          supervise  the Leasing  Agent in the  performance  of its duties under
          such agreement.

     (6)  Insurance.  The Manager  shall  obtain and  maintain in full force and
          effect,  at the expense of the LLC, such  insurance as the Manager may
          deem  necessary or appropriate  from time to time and such  additional
          coverages as any Deciding  Member may reasonably  request from time to
          time.  Whenever  insurance is purchased for the LLC, the Manager shall
          arrange  for  each  Member  to  receive  a  certificate  of  insurance
          evidencing the  insurance.  Each such  certificate  shall identify the
          insurance  policy by policy number,  inception and  expiration  dates,
          named insureds,  coverages,  and limits of liability.  The certificate
          shall also provide for * days' advance  written  notice to each Member
          prior to  cancellation,  termination  or change in coverage.  Upon the
          request of any  Member,  the  Manager  shall  furnish to such Member a
          certified copy of any insurance policy obtained for the benefit of the
          LLC.  The Manager may obtain all or any portion of such  insurance  as
          part of a blanket  policy  obtained by any  Affiliate of the Developer
          Member  from  time to time,  in which  case the LLC  shall pay to such
          Affiliate an equitable  portion of the premium  therefor as reasonably
          determined by such Affiliate.

     (7)  Employees;  Legal Compliance. The Manager shall perform all the duties
          under this Section 6.1(b) using its own personnel and  resources.  The
          Manager shall pay all compensation,  benefits and taxes required to be
          paid to its employees  and to comply with all laws in connection  with
          such employment and the performance of its duties hereunder.

(c)  Right to Rely on Manager;  Attorney-in-Fact.  The  execution or delivery by
     the  Manager  on behalf  and in the name of the LLC of any  document  shall
     constitute  conclusive evidence of (i) the Manager's power and authority on
     behalf and in the name of the LLC to execute  and  deliver (as the case may
     be) such  document;  (ii) the power and authority of the LLC to execute and
     deliver (as the case may be) such  document and to perform all  obligations
     (if any) of the LLC provided therein;  and (iii) the truth of any statement
     contained therein as to any action taken or to be taken by the Manager, the
     Members  and/or the LLC  (including  such matters as formation,  existence,
     power and authority,  authorization,  execution or delivery, the identities
     and genuine signatures of the Manager, Members or agents of the LLC and the
     existence or nonexistence of any fact constituting a condition precedent to
     the taking of any action by any of the  foregoing).  Without  limiting  the
     generality  of the  foregoing,  the LLC hereby  appoints the Manager as its
     attorney-in-fact,  with  full  power of  substitution,  to take any  action
     whatsoever  (including the execution or delivery of any document) on behalf
     and in the name of the LLC that the  Manager is  permitted  or  required to
     take pursuant hereto.

(d)  Appointment,  Resignation  or  Removal.  The  Developer  Member  is  hereby
     appointed the Manager.  The Developer Member may resign as the Manager only
     upon the  unanimous  Consent of the  Deciding  Members or if the  Developer
     Member ceases to be a Member. Except as otherwise  specifically provided in
     this Agreement, no person may be removed or appointed as the Manager except
     upon the  unanimous  Consent  of the  Members.  Upon such  Consent,  notice
     thereof to the Manager and each Member and the  execution  and  delivery by
     the  person  being  appointed  as  the  Manager  of  a  counterpart  hereof
     evidencing such person's agreement to be bound hereby as the Manager,  such
     removal and appointment shall be effective. The Manager may be removed upon
     such Consent at any time, with or without cause.  The removal of any person
     as the Manager shall have no effect on such  person's  status (if any) as a
     Member.

(e)  Manager  Compensation.  Except as specifically  provided in this Agreement,
     the Manager  shall not be entitled to  compensation  or  reimbursement  for
     expenses  for its services as such.  In its  capacity as the  Manager,  the
     Manager  shall not make any  contributions  to the capital of the LLC,  nor
     share in the  profits  and losses of the LLC. In no event shall the Manager
     be  entitled  to any  brokerage,  finder's  or other  similar  fee upon the
     closing of the  acquisition  of the Project by the LLC or the sale or other
     Disposition of the Project.

(f)  Property  Management Fee. As compensation for management  services pursuant
     to the Property Management  Agreement,  the LLC shall pay the Manager a fee
     (the "Property  Management  Fee") equal to * of the gross receipts from the
     Project  in  accordance  with the  terms  and  conditions  of the  Property
     Management Agreement.

(g)  Licensing.  The Manager represents and warrants to the LLC that it has duly
     obtained,  and agrees that it shall duly maintain in full force and effect,
     all licenses and permits,  including real estate broker licenses,  required
     under applicable law to perform its duties under this Agreement.

6.2 Major Decisions and Major Operating Decisions.

(a)  Major Decisions.  Notwithstanding anything contained in Sections 6.1 to the
     contrary,  the Members by unanimous  Consent  shall have the full power and
     authority to cause the LLC to do anything that the Members  determine is in
     the best  interests of the LLC and not  prohibited by  applicable  law, and
     neither the  Manager nor any Member may cause the LLC to take,  or agree to
     take, any of the following  actions (each a "Major  Decision")  without the
     unanimous   Consent  of  the  Members   (which   Consent  no  Member  shall
     unreasonably withhold or delay, provided,  however, that it shall be deemed
     reasonable  for  Frontier to withhold its Consent to any action which would
     result in any airline or an Affiliate of any airline,  other than Frontier,
     becoming an Affiliate of the LLC or a Member of the LLC or the Manager):

     (1)  amend the Articles of Organization or this Agreement;

     (2)  except as specifically  provided herein,  admit any person as a Member
          or permit the withdrawal of any person as a Member;

     (3)  except as specifically  provided herein, remove the Manager or appoint
          any person as a Manager;

     (4)  permit the  redemption or repurchase of any LLC interest or the return
          of any Capital Contribution, except as specifically provided herein;

     (5)  merge,  consolidate  or amalgamate  with any person,  convert into any
          other entity or,  except as otherwise  specifically  provided  herein,
          dissolve, liquidate or terminate;

     (6)  transact any business other than as set forth in Section 3.1;

     (7)  acquire  any  property  or  interest  therein  other  than  as  may be
          reasonably  necessary to perform the  business  purposes of the LLC as
          set forth in Section 3.1;

     (8)  compromise,  discharge or settle any  Proceeding as a  consequence  of
          which the LLC may be subject to any criminal  liability or judgment or
          any civil  liability  or  judgment  in which the LLC  admits to fraud,
          misrepresentation,  or any other  action or inaction  involving  moral
          turpitude or which could reasonably be expected to reflect unfavorably
          upon the corporate image of the Manager or any Member;

     (9)  increase the Property  Management  Fee to an amount  greater than * of
          the gross  receipts  from the  Project or  increase  the amount of the
          Development Fee;

     (10) enter  into any  agreement  with an  Affiliate  of the  Manager or any
          Member  except this  Agreement or pursuant to (i) the Frontier  Center
          One Financing,  (ii) the Property  Management  Agreement and (iii) the
          Project  Leasing  Agreement,  or amend in any material  respect (other
          than to extend the term  thereof),  or waive any material right of the
          LLC or material  obligation due the LLC under (i) the Frontier  Center
          One Financing,  (ii) the Property  Management  Agreement and (iii) the
          Project Leasing Agreement;

     (11) except  as  contemplated  by the  express  terms  of  this  Agreement,
          increase any amounts due the Manager,  any Member or any  Affiliate of
          the Manager or of any Member  hereunder,  to the extent such  increase
          reduces the amounts payable to Frontier hereunder absent such increase
          (including,  without  limitation,  any such  increase that reduces the
          amount of the cash  available as Net Available Cash  distributable  to
          Frontier  under  Section  5.4 or the amount of cash  distributable  to
          Frontier under Section 10.2); or

     (12) Sell Frontier Center One other than for cash.

(b)  Major Operating Decisions.  Notwithstanding  anything contained in Sections
     6.1 to the  contrary,  neither the Manager nor any Member may cause the LLC
     to take,  or agree to take,  any of the  following  actions  (each a "Major
     Operating Decision") without the unanimous Consent of the Deciding Members:

     (1)  Dispose of all or substantially all of the LLC Assets, with or without
          the LLC's  goodwill,  or any  property  of the LLC other  than (i) any
          property required to be encumbered pursuant to the Frontier Center One
          Financing or any Third-Party Financing,  to the extent so required; or
          (ii) a  leasehold  interest  in  Frontier  Center One  pursuant to the
          Frontier Lease or any other Project Lease;

     (2)  enter into a contract for the construction of Frontier Center One with
          a general contractor other than the General Contractor;

     (3)  apply for or  consent  to any  change in the zoning of the Land or any
          further subdivision of the Land;

     (4)  contract  for, or delegate,  the  management or leasing of the Project
          other than  pursuant  to the  Property  Management  Agreement  and the
          Project Leasing Agreement;

     (5)  enter into any real estate brokerage  contract for the sale or leasing
          of all or any of the Project or any  interest  therein  other than the
          Project Leasing Agreement with the Leasing Agent;

     (6)  make any changes to the Project Development Plan;

     (7)  amend, extend, renew, cancel,  terminate,  or waive any material right
          of the LLC under, the Frontier Lease, permit any assignment thereof or
          subletting  thereunder  or amend,  cancel or  terminate  any  guaranty
          thereof;

     (8)  compromise,  discharge or settle any  Proceeding as a  consequence  of
          which the LLC may be  subject  to  specific  performance  or any civil
          liability or judgment;

     (9)  borrow  money  (other  than  trade  debt  in the  ordinary  course  of
          business) or issue guarantees; or

     (10) receive  any Capital  Contributions  except as  expressly  provided in
          Section 4.1(c).

Any matter which is  submitted by the Manager to a Member for approval  shall be
deemed  approved  by such  Member  as  presented  by the  Manager  unless  it is
disapproved  by notice to the  Manager  given  within * Business  Days after the
matter is submitted by the Manager to the Member,  provided,  however,  a Member
may withhold  approval  pending  further  consideration  without  disapproving a
matter by giving notice to the Manager to such effect within such * Business Day
period.

6.3 Member  Meetings and Voting.  The Members may, but shall not be required to,
hold any annual, periodic or other formal meetings. Nevertheless, the Members or
the Manager,  upon telephonic or other notice,  may convene a special meeting of
the   Members  or  of  the   Deciding   Members  at  any  time  the   Designated
Representatives  are  available  therefor.  In  addition,  upon not less  than *
Business Days' prior notice to the Manager and the other Members, any Member may
require that a special  meeting of the Members be held at the time  specified in
such  notice.  No notice of meeting need state the purpose of the meeting or the
business to be transacted thereat. The Manager shall conduct any meetings of the
Members  or  of  the  Deciding   Members.   The   presence  of  the   Designated
Representative  for each Member shall be required to constitute a quorum for the
taking at any  meeting of the  Members of any action for which  their  unanimous
Consent is required and the presence of the Designated  Representatives for each
Deciding  Member shall be required to  constitute a quorum for the taking at any
meeting of the Deciding Members of any action for which their unanimous  Consent
is required.  Unless  otherwise agreed by the Members required to participate in
the meeting,  all meetings shall be held in the Denver,  Colorado,  metropolitan
area; provided,  however, any meeting of the Members or the Deciding Members may
be held through a conference telephone or similar communications device by means
of  which  the  Designated  Representatives  of  the  Manager  and  all  Members
participating in the meeting can hear and speak to each other, and participation
in such meeting shall  constitute  presence at such  meeting.  Any notice of any
meeting of the Members or of the Deciding Members may be waived in writing,  and
the  presence  of the  Designated  Representative  of a Member or of a  Deciding
Member,  as the case may be, at such meeting shall constitute a waiver of notice
thereof by such Member,  except where such Designated  Representative is present
for the express  purpose of  objecting  at the  beginning of such meeting to the
transaction  of any  business  on the  ground  that  such  meeting  has not been
properly  convened.  The  Manager  shall  cause  minutes of all  meetings of the
Members and of the Deciding  Members to be kept and retained in the LLC records.
Notwithstanding the foregoing,  any action permitted or required hereunder or by
applicable  law to be taken  at a  meeting  of the  Members  or of the  Deciding
Members may be taken without a meeting upon a written Consent, setting forth the
action to be taken,  executed by each Member or Deciding Member, as the case may
be (whether in one instrument or in  counterparts).  Such Consent shall have the
same  force and  effect as a vote at a meeting  and may be stated as such in any
document filed with the Filing Office.

6.4 Member  Compensation;  Development  Fee. Except as specifically  provided in
this Agreement,  no Member shall be entitled to compensation or reimbursement of
expenses for any services as a Member except that the  Developer  Member and the
Owner Member shall be paid a development fee (the "Development Fee") as follows:
The  Development  Fee shall be an amount equal to * of Frontier  Center One. The
Development  Fee shall be paid only from and to the extent of Net Available Cash
and prior to the making of any  Distributions.  The Development Fee shall become
payable upon the Frontier Rent  Commencement  Date. The Development Fee shall be
allocated  between  the Owner  Member and the  Developer  Member  based upon the
respective   balances  in  their  Capital  Accounts  as  of  the  Frontier  Rent
Commencement Date.

6.5 Management  Relationships.  The Manager shall keep each Member well informed
regarding  all  material  matters  affecting  the LLC.  The  Manager  shall,  in
accordance  with any  Member's  request,  without  cost to the Member,  promptly
deliver  thereto  any  information  or  copies  of  documents  in the  Manager's
possession  or  control  relating  to the LLC and  disclose  to,  and  cause its
Designated  Representative to discuss with, the Designated Representative of any
Member any matter relating to the LLC or its business known to the Manager.

6.6 Designated Representatives.

(a)  The Manager and each Member  shall at all times have a natural  person (the
     "Primary Designee") as its representative (the "Designated Representative")
     who shall be  authorized  to act under this  Agreement for and on behalf of
     the Manager or such Member  respectively.  Any  Consent,  action or vote in
     writing of a Designated  Representative  shall be deemed conclusively to be
     the Consent,  action or vote of the Manager or the Member which  designated
     such  Designated  Representative,  and none of the LLC,  the Manager or any
     Member shall be required to inquire into the  authority of such  Designated
     Representative  as to such  Consent,  action or vote.  The Manager and each
     Member  shall at all times have  another  natural  person  (the  "Alternate
     Designee")  to  serve  as the  Designated  Representative  if  the  Primary
     Designee  is  unavailable  at the  time  any  Consent,  action  or  vote is
     required. Any Primary Designee or Alternate Designee may be replaced by the
     Manager or Member  which  designated  such  person by giving  notice to the
     Manager and the other Members and stating the name of the replacement.

(b)  Until  replaced  as provided  above,  the Primary  Designee  and  Alternate
     Designee of the Manager and each Member shall be:

For the Developer Member and the Manager: Primary Designee: Chester T. Latcham
                                          Alternate Designee: David Goldberg

For the Owner Member:                     Primary Designee: L.C. Fulenwider, III
                                          Alternate Designee: Marcia A. Lujan

For Frontier:                             Primary Designee: Joan Osterman
                                          Alternate Designee: Arthur T. Voss

(c)  A Designated  Representative shall not be personally liable to the LLC, the
     Manager  or any  Member  for  monetary  damages  for  breach of any duty as
     Designated Representative.

6.7  Indemnification.  The LLC shall,  to the fullest  extent  permitted by law,
indemnify,  defend and hold  harmless the  Manager,  each Member and each person
that has served or is serving as a Designated  Representative  (in each case, an
"Indemnitee"),  from and against any and all claims  (whether  involving  civil,
criminal or administrative allegations,  investigations or proceedings), losses,
damages,  liabilities  and expenses  (including  attorneys'  fees and  expenses)
arising out of or in  connection  with any matter  incidental to the business or
activities of or relating to the LLC and involving the Indemnitee, except to the
extent arising out of such  Indemnitee's  breach of this Agreement (or any other
agreement  between the  Indemnitee and all or any of the LLC, the Manager or any
Member  relating,  directly or  indirectly,  to the LLC or the Project) or gross
negligence or willful  misconduct.  Upon  delivery to the LLC of a  satisfactory
undertaking by or on behalf of any Indemnitee to repay,  upon any  determination
pursuant  to a final  decision in any  Proceeding  that such  Indemnitee  is not
entitled to the  benefits of this  Section 6.7, all advances by the LLC for such
Indemnitee's  defense  costs  in  connection  with  any  matter  covered  by the
preceding  sentence,  the LLC shall  from time to time,  upon such  Indemnitee's
request,  advance such defense  costs prior to the final  determination  of such
matter.  Notwithstanding  anything  herein  to  the  contrary,  the  rights  and
obligations  contained in this Section 6.7 shall survive the  termination of any
Indemnitee's designation other engagement by or involvement with the LLC.

6.8 Other Activities and Competition.

(a)  Other  Activities.  Nothing in this Agreement shall be construed to require
     the Manager or any Member or any Affiliate thereof to devote its full time,
     attention or resources to the business of the LLC. The Manager,  any Member
     and any  Affiliate  of any  thereof  may,  without  notice to the LLC,  the
     Manager or any Member and without any obligation to share  therewith any of
     the   benefits   thereof,   engage  in   activities   (including   business
     opportunities)  other than in connection with the performance of any duties
     hereunder or the accomplishment of the purposes of the LLC.

(b)  Competition.  Subject to the  provisions  of Section 8 of the  Contribution
     Agreement,  nothing in this  Agreement or in the  formation or operation of
     the LLC  pursuant  hereto  shall be  construed  to prohibit  the  Developer
     Member,  the  Owner  Member  or the  Manager  or any  of  their  respective
     Affiliates from purchasing,  selling, developing or otherwise engaging in a
     business  relating  to  land  or  other  real  property,  including  office
     buildings,  whether  or not  such  activities  are or  could  be in  direct
     competition  with the  business  of the LLC.  The  Manager  and each Member
     hereby  expressly  acknowledges  that  Affiliates  of each of the Developer
     Member,  the Owner Member and the Manager are  developing a mixed-use  land
     development,  which competes or may in the future compete directly with the
     Project,  and the  Manager  and each  Member  has  satisfied  itself of the
     economic  viability of the Project  notwithstanding  the other  activities,
     including  the  competitive  activities,  of the  Affiliates of each of the
     Developer Member, the Owner Member and the Manager. None of the competitive
     or other activities of the Developer Member,  the Owner Member, the Manager
     or any of their respective Affiliates shall be deemed to be a breach of any
     obligation,  express or implied, including any fiduciary obligation, of the
     Developer  Member,  the Owner Member,  the Manager or such Affiliate to the
     LLC, the Manager or any Member.

6.9 Rights of Frontier.

(a)  Limitation  of Rights.  In no event shall  Frontier  have the right to, nor
     shall it,  participate in the management of the LLC or in the making of any
     decisions other than any Major Decisions and any other decisions  expressly
     reserved to the Members  under this  Agreement or expressly  required to be
     reserved to the Members under the Act.

(b)  Limitation of Duties. In no event shall the Manager have any greater duties
     than are  required by the Act. In no event shall any Member have any duties
     to any other Member other than the duties of good faith and fair dealing as
     those  duties  are  implied  under  the laws of the  State of  Colorado  in
     commercial  contracts  generally.   The  Manager  and  the  Members  hereby
     expressly  disclaim any other  duties,  express or implied,  including  any
     fiduciary duties,  and each Member hereby covenants and agrees that it will
     not assert any right or make any claims  against  the  Manager or any other
     Member  under or arising  out this  Agreement  on the basis of any  duties,
     express or implied, other than the duties of good faith and fair dealing as
     those  duties  are  implied  under  the laws of the  State of  Colorado  in
     commercial  contracts  generally,  and,  as to the  Manager,  such  duties,
     including  fiduciary  duties,  if any,  as are  required  of a manager of a
     Colorado limited liability company under the Act.

(c)  Information. Notwithstanding any provisions of Article VI or Article VII to
     the contrary,  the Manager shall not be required to furnish to Frontier all
     of the information it furnishes to the Deciding Members, provided, however,
     and without  limitation to its statutory  rights to information as a Member
     of the LLC,  Frontier  shall be entitled to access to the books and records
     of, and other  information  concerning,  the LLC to the  extent  reasonably
     required to determine  its right to, and the amount of, any monies  payable
     to Frontier under this Agreement or relevant to the Right of First Offer or
     the purchase of Frontier Center One pursuant to the Right of First Offer or
     the  exercise  of its other  rights and  obligations  hereunder,  including
     compliance by the Manager and the Members of their  obligations to Frontier
     hereunder and the determination of Frontier's  position on Major Decisions.
     Frontier  shall not be  entitled  to any  information  concerning  Frontier
     Center One or the business of the LLC that would, in the reasonable opinion
     of the Manager,  prejudice the  interests of the LLC as the landlord  under
     the Frontier Lease except to the extent such  information is required to be
     disclosed under the Frontier Lease.

(d)  Event of Default.  Notwithstanding  any provisions of this Agreement or the
     Frontier  Lease to the contrary,  Frontier's  rights under this  Agreement,
     including  the right to receive all or any portion of the  Frontier  Equity
     Payment,  the Right of First Offer and its status as a Member,  shall cease
     and  terminate,  as if  such  rights  had  never  been  granted,  upon  the
     occurrence at any time within * years after the Frontier Rent  Commencement
     Date, of a Frontier Lease Default.

                                  ARTICLE VII
                        BANK ACCOUNTS; BOOKS AND RECORDS;
                      REPORTS; TAX MATTERS; CONFIDENTIALITY

7.1 LLC Accounts.  The Manager shall establish and maintain on behalf and in the
name of the LLC, and  designate  signatories  on, one or more bank or investment
accounts with such financial institutions and firms as the Manager may select by
notice  to  the  Members,   other  than  any  accounts  or  with  any  financial
institutions to which any Member shall reasonably object by giving notice to the
Manager within * Business Days following the giving of the notice by the Manager
to the Members.

7.2 Books and Records; Financial Statements.

(a)  The Manager  shall  prepare  and  maintain  at the LLC's  principal  office
     accurate and complete books and records of the  organization  and governing
     documents  of,  actions  taken by, and business of, the LLC,  including the
     records required to be kept at the principal office under the Act.

(b)  The  Manager  shall  cause  to be  prepared  and  maintained  at the  LLC's
     principal  office  accurate  and  complete  books and  records  showing the
     assets,  liabilities,   revenues,  expenses,   transactions  and  financial
     condition of the LLC  (specifically  including  all loans and loan payments
     and all capital  expenditures).  The accounts of the LLC, together with any
     financial   statements   relating   thereto,   shall  be   prepared   on  a
     consolidating,  accrual basis in accordance with GAAP consistently applied,
     except to the  extent  GAAP is  inconsistent  with any  specific  provision
     contained  herein or applicable  law. Each  financial  statement of the LLC
     shall  fairly  present the  financial  condition  of the LLC as of the date
     thereof.

(c)  The Manager  shall cause to be prepared  and  delivered  to each Member the
     following written reports and financial statements:

     (1)  Within fifteen (15) days after the end of each calendar month and each
          Fiscal Quarter (i) unaudited balance sheets and related  statements of
          income, Members' equity and changes in cash flow, and (ii) a rent roll
          showing all pertinent  information with respect to the Project Leases,
          in each  case  certified  by the  Manager  to be,  to the  best of the
          Manager's knowledge and belief, accurate and complete and, in the case
          of financial statements, prepared in accordance with GAAP consistently
          applied, except to the extent specified therein;

     (2)  All  plans  and  reports   required  under  the  Property   Management
          Agreement; and

     (3)  Within  ninety  (90) days after the end of each Fiscal  Year,  balance
          sheets and related  statements of income,  Members' equity and changes
          in cash flow, in each case audited by an independent  accounting  firm
          selected by the Manager by notice to the Members,  other than any firm
          to which any Member  shall  reasonably  object by notice  given to the
          Manager  within five (5)  Business  Days  following  the giving of the
          notice by the Manager to the Members.

(d)  Subject to Section  6.9(c),  the Manager shall  promptly make copies of the
     books and records of the LLC available upon any Member's  request,  and the
     Manager  shall  retain and make  available  to the  Members  such books and
     records  for a period of at least  seven (7)  years  after the  Termination
     Date.

(e)  Upon any resignation or other termination of the Manager, the Manager shall
     promptly  deliver all of the accounts,  books and records of the LLC to the
     person designated by the Members.

7.3 Tax Matters.

(a)  Partnership  Treatment.  The  Members  intend  that the LLC be treated as a
     partnership for federal income tax purposes and, to the extent permitted by
     applicable  law,  for state,  local and  foreign  franchise  and income tax
     purposes.  None of the LLC,  the Manager or any Member may make an election
     for the LLC to be (i) excluded from the  application  of the  provisions of
     subchapter  K of  Chapter  1 of  Subtitle  A of the  Code  or  any  similar
     provisions  of  applicable  state or  local  law or (ii)  classified  as an
     association  pursuant to Treasury  Regulation  Section  301-7701-3,  and no
     provision hereof shall be construed to permit or require such an election.

(b)  Tax Returns and Elections. The Manager shall cause to be prepared and filed
     all necessary  federal,  state and local income tax returns for the LLC and
     in connection therewith make the following elections on the appropriate tax
     returns: (i) the adoption of the Fiscal Year required by Section 706 of the
     Code; (ii) the adoption of the accrual method of accounting and the keeping
     of the  LLC's  books  and  records  in  accordance  therewith;  (iii)  if a
     distribution  of LLC Assets as  described in Section 734 of the Code occurs
     or if a transfer of an LLC Interest as described in Section 743 of the Code
     occurs, upon the unanimous Consent of the Members, the election pursuant to
     Section  754 of the Code to adjust  the basis of LLC  Assets;  and (iv) the
     amortization of the organizational expenses of the LLC under Section 709(b)
     of the Code and the startup  expenditures  of the LLC under  Section 195 of
     the Code, in each case ratably over the shortest  period of time  permitted
     by applicable law.

(c)  Tax Matters  Member.  The LLC shall have a "tax matters  partner" (the "Tax
     Matters  Member")  pursuant to Section  6231(a)(7)  of the Code.  Except as
     specifically  required to the contrary herein or by applicable law, the Tax
     Matters  Member may take or not take any action in connection  with any tax
     matter  relating  to  the  LLC.  Without  limiting  the  generality  of the
     foregoing,  the  Tax  Matters  Member  shall  take  such  action  as may be
     necessary to:

     (1)  cause the other Members to become "notice partners" within the meaning
          of  Section  6231(a)(8)  of the  Code,  promptly  inform  them  of all
          material matters that may come to its attention in its capacity as Tax
          Matters  Member and  deliver to them  copies of all  material  written
          communications   (including  any  written  adjustment  by  any  taxing
          authority which would affect any Member's  liability for taxes) it may
          receive or submit in such capacity; and

(2)                        participate in any meeting with any taxing  authority
     and/or prosecute any Proceeding involving tax matters
                           relating  to the LLC  and  determine,  to the  extent
                           permitted by applicable law, whether or not to permit
                           any other Member to  participate  therein  (including
                           any defense).

The  Developer  Member is hereby  appointed the Tax Matters  Member.  Any person
serving  as the Tax  Matters  Member  may  resign at any time upon not less than
sixty (60) days prior notice to each  Member,  and such  resignation  shall take
effect  upon the  expiration  of such  60-day  period or at such  later  time as
specified  in such notice.  The  Developer  Member shall not be removed,  and no
person  other than the  Developer  Member may be  appointed,  as the Tax Matters
Member  except upon the unanimous  Consent of the Members.  The  resignation  or
replacement of any Member as the Tax Matters Member shall have no effect on such
person's  status  as a Manager  or a Member.  The Tax  Matters  Member  shall be
entitled to reimbursement by the LLC of all reasonable,  out-of-pocket  expenses
incurred by the Tax Matters Member in performing its duties hereunder.

7.4 Regulatory Requirements.  Each Member shall, from time to time upon request,
provide such  information in its possession or control as the Manager or the Tax
Matters Member (as the case may be) deems  necessary to permit the LLC to comply
with any applicable governmental requirements.

                                  ARTICLE VIII
                      ADMISSION AND WITHDRAWAL OF MEMBERS;
                                    TRANSFERS

8.1 Admission and Withdrawal of Members.

(a)  Admission.  Each  person  signing  this  Agreement  as a Member  is  hereby
     admitted to the LLC as such.  No other person shall be admitted as a Member
     except upon the satisfaction of the following conditions precedent:

     (1)  if such  person  is not a  Permitted  Transferee,  upon the  unanimous
          Consent of the Deciding Members;

     (2)  if such  person  is a  Permitted  Transferee  of less  than all of any
          Member's LLC Interest,  the vesting  therein,  pursuant to a Permitted
          Transfer,  of  ownership  of  an  equal  percentage  (as  compared  to
          percentage  of such LLC Interest not being  transferred)  of all items
          (including the Capital Account) constituting such LLC Interest;

     (3)  if such  person is a  Permitted  Transferee,  together  with any other
          Permitted  Transferee,  of the  entirety of the  Member's LLC Interest
          pursuant  to one or more  Permitted  Transfers,  the  delivery  to the
          Manager of a notice of withdrawal from the LLC by the Member;

     (4)  the  reimbursement  by or on  behalf of such  person  of all  expenses
          (including  attorneys'  fees  and  expenses)  incurred  by the  LLC in
          connection with such admission; and

     (5)  the execution and delivery by such person of a counterpart  hereof and
          such other  documents  as the  Manager or the Tax  Matters  Member may
          reasonably  request to effect the admission of such person as a Member
          and to assure compliance with applicable law in connection therewith.

(b)  Withdrawal.  No person  admitted  to the LLC as a Member may  withdraw as a
     Member except upon the unanimous  Consent of the Members,  upon a Permitted
     Transfer of the entirety of its LLC  Interest or as otherwise  specifically
     provided herein.

8.2 Transfers of LLC Interests and Member Interests.

(a)  Permitted Transfers. No Member shall, directly or indirectly, sell, assign,
     transfer,  exchange,  mortgage,  pledge,  dispose of, hypothecate,  grant a
     security  interest in, encumber  (except by a negative pledge) or permit to
     be sold, assigned, transferred, exchanged, mortgaged, pledged, disposed of,
     hypothecated,  become subject to a security interest or encumbered  (except
     by negative  pledge) (in any such case, a "Transfer") all or any portion of
     its LLC  Interest  or all or any  portion of any  interest  in any  Member,
     except  upon  the  satisfaction  of  the  following  conditions  precedent,
     whereupon such Transfer  shall be deemed to be effective (as  effective,  a
     "Permitted Transfer"):

     (1)  upon (i) the unanimous Consent of the Members to the proposed Transfer
          (provided,  however, the Consent of Frontier shall not be unreasonably
          withheld  or delayed  to any  Transfer  other  than a  Transfer  to an
          airline or any  Affiliate  of an  airline),  or (ii) a  Transfer  by a
          Deciding Member to another  Deciding Member or to an Affiliate of such
          Deciding Member or of another Deciding Member,  or (iii) a Transfer of
          an  interest  in the  Developer  Member to any  person  other  than an
          airline  or an  Affiliate  of an  airline,  so long  as the  Developer
          remains in control of the Developer  Member;  or (iv) a Transfer of an
          interest  in the Owner  Member to any person  other than an airline an
          Affiliate of any airline,  so long as the Owner  remains in control of
          the Owner  Member,  or (v) a Transfer  of the entire LLC  Interest  of
          Frontier to an Affiliate of Frontier or to a person which acquires all
          or substantially  all of the assets of Frontier and which Affiliate or
          acquiror is  permitted to become,  and  becomes,  the tenant under the
          Frontier  Lease and assumes all of the  obligations  of Frontier under
          the  Frontier  Lease,  whereupon,  following  a  Transfer  of the type
          described in clauses (i) through (v) above,  the  proposed  transferee
          shall be deemed to be a  "Permitted  Transferee;"  provided,  however,
          nothing in this  Section  8.2(a)(1)  shall be  construed  to limit any
          Transfer to the extent J.F. Shea Co., Inc., a Nevada  corporation,  or
          any Affiliate  thereof (other than Developer or the Developer  Member)
          now have or at any time hereafter have control of an airline;

     (2)  the  delivery to the Manager of an  effective  instrument  of Transfer
          describing  in  reasonable  detail the portion of the LLC  Interest or
          interest in the Member  being  transferred;  provided,  however,  that
          notwithstanding  any provision in such instrument to the contrary,  no
          transferee of all or a portion of an LLC Interest shall be entitled to
          assert  any  right  or  interest,  other  than the  right  to  receive
          Distributions,  in respect of the portion of such LLC  Interest  being
          transferred,  except upon the admission of such transferee as a Member
          pursuant to Section 8.1(a);

     (3)  the delivery to the Manager of an opinion of counsel,  satisfactory in
          form and  substance to the Manager,  that such Transfer is exempt from
          registration  under the Securities Act and that such Transfer does not
          violate,  and will not  result  in the LLC being in  violation  of, or
          require any filing by the LLC or any Member  pursuant to, or cause any
          dissolution  of  the  LLC  or  any  Member  in  connection  with,  any
          applicable law;

     (4)  the  reimbursement  by or on  behalf of the  transferor  Member of all
          expenses (including  attorneys' fees and expenses) incurred by the LLC
          in connection with such Transfer; and

     (5)  the  execution  and  delivery by all parties to such  Transfer of such
          documents  as the  Manager or the Tax  Matters  Member may  reasonably
          request  to  effect  such  Transfer  and  to  assure  compliance  with
          applicable law in connection therewith.

(b)  Void  Transfers.  Any purported  Transfer  other than a Permitted  Transfer
     shall be void,  and  neither the Manager or any Member nor the LLC shall be
     required to recognize  any claims by any  purported  transferee  to any LLC
     interest (including any Distribution in respect thereof) or any interest in
     any Member other than a Permitted Transferee. If at any time the Manager or
     any Member has any good faith reason to believe any LLC Interest is subject
     to any purported Transfer other than a Permitted Transfer, the Manager may,
     and,  upon the  request of any Member  having  such a reason,  the  Manager
     shall,  withhold any  Distribution in respect thereof until delivery to the
     Manager or such Member, as the case may be, of satisfactory assurances that
     such LLC Interest is not subject to any such purported Transfer.

                                   ARTICLE IX
                       PUT AND CALL; RIGHT OF FIRST OFFER

9.1 Put/Call  Offering Notice.  At any time after * or more of the Rentable Area
of Frontier Center One is leased and occupied and the Third-Party  Financing has
been obtained (and whether or not a dissolution  of the LLC has occurred and, if
a dissolution of the LLC has occurred, references to the Manager in this Section
9.1 shall be deemed to refer to the  liquidator  appointed  pursuant  to Section
10.1(c)),  either the Owner  Member or the  Developer  Member  (the  "Initiating
Member") may give notice (the  "Put/Call  Offering  Notice") to the other Member
(the "Responding  Member") and the Manager of the Initiating  Member's intent to
exercise  its rights  under this  Section 9.1 and to purchase  all, but not less
than all, of the Responding Member's LLC Interest. In such event, the provisions
set forth in this Article IX shall apply. The Initiating Member shall specify in
its Put/Call  Offering  Notice the all cash purchase price (which price shall be
the  fair  market  value  of the  Project  as  determined  in good  faith by the
Initiating  Member) at which the Initiating  Member would be willing to purchase
the  Project,  free and clear of  monetary  liens  (other than the lien for real
property  taxes for the calendar year in which the Put/Call  Offering  Notice is
given) as of the date the Put/Call  Offering  Notice is given ("Date of Value").
Once given, a Put/Call Offering Notice cannot be revoked.

9.2 Exercise of Put/Call.

(a)  Election.  Upon receipt of the Put/Call  Offering  Notice,  the  Responding
     Member shall then be obligated either:

     (1)  To sell to the Initiating  Member its LLC Interest at a price equal to
          the amount the  Responding  Member would have been entitled to receive
          hereunder  if the LLC had sold the LLC Assets to a third party for the
          Put/Call  Offering  Price (as defined  below) on the Date of Value and
          dissolved and liquidated the LLC in accordance with Article X; or

     (2)  To purchase the LLC Interest of the Initiating Member at a price equal
          to the amount  the  Initiating  Member  would  have been  entitled  to
          receive  hereunder if the LLC had sold the LLC Assets for the Put/Call
          Offering  Price to a third  party on the Date of Value and  liquidated
          the LLC in accordance with Article X.

(b)  Put/Call  Offering  Price.  "Put/Call  Offering  Price" shall mean the cash
     purchase price for the Project  specified in the Put/Call  Offering  Notice
     plus the book  value of all the other LLC  Assets as shown on the books and
     records of the LLC, updated to the Date of Value, and minus all liabilities
     of the LLC (in any event not  including  the  Developer  Member  Unreturned
     Preferred Equity,  the Developer Member Preferred Return,  the Owner Member
     Unreturned  Preferred  Equity,  the Owner  Member  Preferred  Return or the
     Frontier Equity Payment), all as determined by the LLC's accountant.

(c)  Exercise.  The Responding  Member shall notify the Initiating Member of its
     election within  forty-five  (45) days after the Date of Value.  Failure to
     give notice  within  such time  period  shall be deemed an election to sell
     under Section  9.2(a) made on the date which is forty-five  (45) days after
     the Date of Value. For purposes of the balance of this Article IX the price
     calculated  pursuant to Section 9.2(a)(1) or (2) above shall be referred to
     as the "Put/Call  Purchase  Price" and the term  "Purchasing  Member" shall
     mean the  Member  who is  obligated  to  purchase  the other  Member's  LLC
     Interest pursuant to either Section 9.2(a)(1) or Section 9.2(a)(2) (whether
     such Member is the Initiating Member or the Responding Member) and the term
     "Selling  Member"  shall mean the Member who is  obligated  to sell its LLC
     Interest to the Purchasing Member pursuant to such Sections.

(d)  Designee of Purchasing  Member.  Notwithstanding  the provisions of Article
     VIII, if any Member  purchases the other Member's LLC interest  pursuant to
     this Article IX, such Purchasing  Member shall be entitled to designate any
     third party to be the  transferee  of such interest and to become a Member,
     provided that (i) the foregoing shall not delay any  transaction  described
     in this Article IX and (ii) the designated  transferee is not an airline or
     an  Affiliate  of an airline;  provided,  however,  nothing in this Section
     9.2(d) shall be construed to limit the  designation  of a transferee to the
     extent J.F. Shea Co., Inc., a Nevada corporation,  or any Affiliate thereof
     (other than the Developer or the Developer  Member) now have or at any time
     hereafter have control of an airline.

9.3 Put/Call Closing.

(a)  The Deciding Members shall meet and exchange  documents and pay any amounts
     due, and otherwise do all things  necessary to conclude the transaction set
     forth  in  Section  9.2 at the  closing  of such  purchase  (the  "Put/Call
     Closing"). The Put/Call Closing shall occur at the office of the Manager at
     1:00 p.m. on the thirtieth (30th) day after the date the Responding  Member
     notifies  or is deemed to notify  the  Initiating  Member of its  election;
     provided,  however, if the closing of the purchase would result in a change
     in the terms or conditions of the  Third-Party  Financing,  the  Purchasing
     Member,  by notice  given to the  Selling  Member no later than twenty (20)
     days prior to the scheduled date for the Put/Call Closing as stated herein,
     may  postpone  the  Put/Call  Closing to a date not later than the sixtieth
     (60th) day after the date the  Responding  Member  notifies or is deemed to
     notify the Initiating Member of its election.  At the Put/Call Closing, the
     Selling  Member  shall  deliver to the  Purchasing  Member a duly  executed
     assignment  of  its  LLC  Interest,   free  and  clear  of  all  liens  and
     encumbrances.  Upon the reasonable request of the Purchasing Member, at the
     Put/Call  Closing  or at any  time and from  time to time  thereafter,  the
     Selling  Member shall execute and deliver such other  documents and perform
     such other acts as may be necessary or desirable to consummate the Put/Call
     Closing and to transfer ownership, title and control of the LLC Interest to
     the Purchasing  Member in accordance  with this Article IX. At the Put/Call
     Closing,  the  Purchasing  Member shall  deliver to the Selling  Member the
     Put/Call Purchase Price, in cash, and shall deliver any other documents the
     Selling  Member  reasonably  requests  and are  necessary  or  desirable to
     consummate  the Put/Call  Closing.  Upon the  consummation  of the Put/Call
     Closing,  the Selling Member and its Affiliates  shall be released from any
     liability  under  the  Third-Party  Financing  and any  guarantees  made in
     connection therewith. If the lender under the Third-Party Financing refuses
     to so release the Selling Member and its Affiliates, the Purchasing Member,
     and if the Purchasing Member is the Developer Member or an Affiliate of the
     Developer Member, the Developer, shall indemnify the Selling Member and its
     Affiliates  from  liability  under the  Third-Party  Financing and any such
     guarantees.

(b)  If the  Purchasing  Member  fails to  consummate  the  Put/Call  Closing in
     accordance  with this Article IX, such failure  shall be deemed an Event of
     Default under this Agreement by the Purchasing  Member.  In addition to any
     other  remedies  available  under this  Agreement upon the occurrence of an
     Event of Default,  the Selling Member shall have the right,  exercisable by
     written notice (the  "Put/Call  Default  Notice") to the Purchasing  Member
     that failed to  consummate  the Put/Call  Closing  given within thirty (30)
     days after the date set for the Put/Call Closing, to purchase such Member's
     LLC Interest in accordance  with the  provisions of this Article IX, except
     that the Member that failed to  consummate  the Put/Call  Closing  shall be
     obligated  to sell its LLC  Interest  to the  other  Member,  the  Put/Call
     Purchase  Price shall be determined  based upon * of the Put/Call  Offering
     Price  established by the Put/Call Offering Notice given by the Member that
     failed to consummate the Put/Call  Closing,  and the Put/Call Closing shall
     occur on the * day after the giving of the Put/Call Default Notice.

9.4 Audit After Put/Call Closing;  Final Settlement.  Upon the request of either
Deciding Member made within * days after the Put/Call Closing, the Manager shall
cause the LLC's  accountant  to complete an audit of the books of account of the
LLC as of the Date of Value and prepare and deliver to the  Deciding  Members an
audited  financial  statement as of such date. The accountant shall also examine
the  books of  account  for the  period  of time  after the Date of Value to and
including the date of the Put/Call Closing. The Put/Call Purchase Price shall be
adjusted to reflect all relevant  activities  from the Date of Value through the
date  of  the  Put/Call  Closing.  The  adjustment  shall  include  any  capital
contribution or paybacks of capital, and each Member's share of any tax benefits
or detriments earned or incurred by the LLC during such period, and the expenses
of the accountant's services to the LLC in making the settlement. The accountant
shall deliver to the Deciding  Members a detailed  statement and  explanation of
any  adjustments to the Put/Call  Purchase Price as a result of any  transaction
occurring after the Date of Value but prior to the date of the Put/Call Closing.
The net amount of such adjustments due to one Deciding Member or the other shall
be due on * or the highest rate then  permitted by applicable  law (whichever is
less), and, at the option of the Deciding Member to whom such amount is due, may
be offset against any debt due to the owing Deciding Member.

9.5 Tax Returns. The LLC's accountant shall also deliver to the Deciding Members
(concurrently with the Purchase Price adjustment statement),  prepared as of the
date of Put/Call  Closing,  all  necessary  state and federal tax  returns.  The
Purchasing  Member shall  execute (on behalf of the LLC) and file all such state
and federal tax returns.

9.6 Right of First  Offer.  Frontier  shall have the prior  right (the "Right of
First Offer") to purchase  Frontier Center One in accordance with the provisions
of this Section 9.6 (but not otherwise), and the LLC shall not sell or offer for
sale Frontier  Center One without first  complying  with the  provisions of this
Section 9.6.

(a)  If,  at  any  time,  including  following  dissolution  of the  LLC  and in
     connection with liquidation of the LLC (in which case all references to the
     Manager in this Section 9.6 shall mean the liquidator appointed pursuant to
     Section  10.1(c)),  the Deciding  Members  either decide to offer  Frontier
     Center One for sale or the LLC receives, and the Deciding Members decide to
     entertain acceptance of, an unsolicited written offer from a third party to
     purchase  Frontier  Center One (an Unsolicited  Offer"),  the Manager shall
     give Frontier written notice stating the price and the terms and conditions
     upon which the LLC in good faith desires to offer  Frontier  Center One for
     sale to any able buyer (a "Notice of Intent to Sell") or, in the case of an
     Unsolicited  Offer, a copy of the Unsolicited  Offer.  Thereupon,  Frontier
     shall  have the  right,  for a period  of * days  after the  Manager  gives
     Frontier the Notice of Intent to Sell, or * Business Days after the Manager
     gives Frontier a copy of the Unsolicited Offer (provided, however, Frontier
     shall use reasonable good faith efforts to respond to a Notice of Intent to
     sell or an Unsolicited  Offer in the shortest time  possible),  to elect by
     giving notice to the Manager whether or not to purchase Frontier Center One
     for the  price and upon the terms  conditions  set forth in such  Notice of
     Intent to Sell or Unsolicited Offer, as the case may be. Frontier's failure
     to respond within the time periods stated above shall be deemed  Frontier's
     irrevocable  election not to purchase  Frontier  Center One pursuant to the
     Right of First  Offer,  and,  within * days  after  any  request  therefor,
     Frontier  shall  deliver to the Manager a statement,  in form and substance
     reasonably acceptable to the Manager, that Frontier has irrevocably elected
     not to purchase Frontier Center One pursuant to the Right of First Offer.

(b)  If Frontier  elects,  in strict  accordance  with the provisions of Section
     9.6(a),  to  purchase  Frontier  Center One  pursuant to the Right of First
     Offer,  the LLC shall sell and Frontier shall purchase  Frontier Center One
     upon (i) substantially the terms and conditions and for the price set forth
     in the Notice of Intent to Sell; provided, however, Frontier shall have (A)
     a maximum of * days after Frontier gives notice of its election to purchase
     Frontier  Center One to conduct  such due  diligence  as Frontier  may deem
     appropriate  (and at any time  within such * day period  Frontier  may give
     notice to the Manager  rescinding its election to purchase  Frontier Center
     One),  and (B) a  maximum  of * days  after  Frontier  gives  notice of its
     election to purchase  Frontier  Center One to close the  purchase;  or (ii)
     substantially  the terms and  conditions,  on the closing  date and for the
     price set forth in the  Unsolicited  Offer or (iii)  such  other  terms and
     conditions as the Members by unanimous Consent may then otherwise agree. If
     Frontier  fails to close the  purchase  in  accordance  with the  preceding
     sentence, then all rights of Frontier under this Right of First Offer shall
     terminate,  and Frontier shall be liable to the LLC for liquidated  damages
     (and  not  as a  penalty),  in  the  amount  of $* if  Frontier's  purchase
     obligation  was pursuant to a Notice of Intent to Sell and $* if Frontier's
     purchase  obligation  was  pursuant to an  Unsolicited  Offer.  The parties
     hereto  acknowledge  that the  amount of the  actual  damages  the LLC will
     suffer as the result of the failure of  Frontier  to close the  purchase in
     accordance  with such  agreement  may be  difficult to  determine,  and the
     amounts set forth above are a reasonable approximation of the damages which
     the LLC shall suffer on account of such failure.

(c)  If Frontier  elects not to so purchase  Frontier Center One (or if Frontier
     fails to make an election  within the time limit stated,  time being of the
     essence),  the LLC may offer Frontier Center One for sale to third parties,
     free of the right of Frontier to acquire  Frontier  Center One  pursuant to
     this Right of First Offer for the price (or any higher price) and otherwise
     upon terms and  conditions  not less  favorable  than are  contained in the
     Notice of Intent to Sell or in the  Unsolicited  Offer, as the case may be,
     for a period  of * days  after the date  Frontier  elects  not to  purchase
     Frontier Center One (or fails to make such election)  pursuant to the Right
     of First  Offer,  and the LLC may accept  any bona fide  offer to  purchase
     Frontier Center One from any third party,  or accept the Unsolicited  Offer
     to  purchase  Frontier  Center  One  from the  third  party  that  made the
     Unsolicited  Offer, at a price equal to or greater than a price which is $*
     less than the price set forth in the Notice of Intent to Sell or at a price
     equal to or greater  than a price which is $* less than the price set forth
     in the Unsolicited Offer, as the case may be, provided any offer requires a
     closing  within  * days  after  its  acceptance  by the LLC  and  otherwise
     contains terms and  conditions not materially  more favorable to such third
     party than the terms and conditions  contained in the Notice to Sell or, in
     the case of an  Unsolicited  Offer,  the final terms and  conditions of the
     sale are not materially more favorable than as set forth in the Unsolicited
     Offer.  For purposes of this Section 9.6, a "third party" shall not include
     the  Manager,  any  Member  or  any of  their  respective  Affiliates,  and
     acceptance  of an  offer or an  Unsolicited  Offer  shall  be  conclusively
     evidenced  by a contract  of  purchase  and sale with  respect to  Frontier
     Center One signed by the LLC and the third party (or any  Affiliate  of the
     third party). A sale of Frontier Center One pursuant to this Section 9.6(c)
     may be consummated free of the right of Frontier to acquire Frontier Center
     One pursuant to this Right of First Offer so long as Closing  occurs within
     * days after acceptance of the offer or Unsolicited  Offer, as the case may
     be.

(d)  If the LLC has complied,  and the offer, or the  Unsolicited  Offer, as the
     case may be,  accepted by the LLC  complies,  with the  provisions  of this
     Section 9.6, within * days after the Manager's request  therefor,  Frontier
     shall  execute and deliver a statement,  in form and  substance  reasonably
     acceptable to the Manager,  to the LLC and to the third party acknowledging
     such  compliance.  Upon the closing of the sale of  Frontier  Center One to
     such third party pursuant to such offer or Unsolicited  Offer,  as the case
     may  be,  Frontier  shall  execute  and  deliver  to  the  LLC a  statement
     acknowledging  the  termination  of this Right of First Offer.  If the sale
     pursuant to such offer, or the Unsolicited  Offer, as the case may be, does
     not close within * days after acceptance by the LLC, the LLC shall not sell
     Frontier  Center  One to such third  party,  without  once  again  offering
     Frontier the  opportunity to purchase  Frontier  Center One pursuant to the
     provisions of this Section 9.6. If the LLC does not accept any offer within
     * days after the giving of the Notice of Intent to Sell,  the LLC shall not
     sell Frontier  Center One without giving Frontier a new Notice of Intent to
     Sell  (which  the LLC may  give  prior  to the  expiration  of such * - day
     period) and otherwise complying with the provisions of this Section 9.6.

(e)  Frontier  shall not Transfer the Right of First Offer to any person,  other
     than to a Permitted Transferee.

                                   ARTICLE X
                            DISSOLUTION; LIQUIDATION

10.1 Dissolution; Liquidation.

(a)  Members'  Covenant.  Each Member  hereby  agrees that it shall not take any
     action or omit to take any action with respect to its  existence,  business
     or  affairs  or  its  membership  in  the  LLC  that  would  result  in the
     dissolution of the LLC under the Act.

(b)  Dissolution.  The LLC shall be dissolved  and its affairs wound up upon the
     occurrence of any of the following events:

     (1)  the unanimous Consent of the Deciding Members;

     (2)  the  death,  dissolution,  withdrawal  or  expulsion  from  the LLC or
          Bankruptcy of any Deciding Member or the occurrence of any other event
          terminating  the  continued  membership  in the  LLC  of  any  Member;
          provided, however, that there shall be no dissolution pursuant to this
          Section 10.1(b)(2) if within * days after the occurrence of such event
          (i) there are at least two remaining Members and the remaining Members
          give their unanimous  Consent to continue the LLC, or (ii) there is at
          least one remaining Member and another person is admitted as a Member,
          and the remaining Member and that person give their unanimous  Consent
          to continue the LLC; or

     (3)  the sale of Frontier Center One or all or substantially all of the LLC
          Assets, with or without its goodwill.

(c)  Liquidation; Liquidator. Upon any dissolution of the LLC, the Manager shall
     act as liquidator  thereof  until  another  person (if any) is appointed as
     liquidator thereof on the unanimous Consent of the Members.  The liquidator
     shall  operate  the LLC and deal with LLC Assets  with all of the power and
     authority  of the Manager and the  Members,  wind up the affairs of the LLC
     and, as promptly as  practicable  after  dissolution  and again after final
     liquidation of the LLC, cause a proper accounting to be made of LLC Assets,
     liabilities  and  operations  as of the  end of the  month  in  which  such
     dissolution  or  final  liquidation  (as  the  case  may  be)  occurs.  The
     liquidator  may defer the sale of any LLC Assets for a  reasonable  time to
     achieve an orderly liquidation that minimizes losses to the Members, except
     to the extent  necessary to satisfy LLC liabilities to creditors other than
     Members. Not later than the end of the Fiscal Year in which liquidation (as
     defined in Treasury  Regulations Section  1.704-1(b)(2)(ii)(g))  of the LLC
     occurs,   the  Manager  shall,   subject  to  applicable  law,  make  final
     Distributions pursuant to Section 10.2. All reasonable expenses incurred by
     the liquidator in performing its duties  hereunder or under  applicable law
     shall be expenses of the LLC.

10.2 Final Payments and Distributions.

(a)  Application  Priorities.  Upon final liquidation of the LLC, the liquidator
     of the LLC shall apply the liquidation  proceeds in the following order and
     priority:

     (1)  first, to the payment of liquidation expenses;

     (2)  second, to creditors of the LLC,  excluding Members (but not excluding
          the Manager in its  capacity as such,  even if a Member),  but in each
          case only to the extent of any  recourse  liabilities  of the LLC then
          due and payable;

     (3)  third,  to the  establishment  of such reserves as the  liquidator may
          deem necessary for contingent liabilities of the LLC;

     (4)  fourth, to the Manager,  any unpaid amount of the Property  Management
          Fee;

     (5)  fifth,  to  creditors  of the LLC that are  Members or  Affiliates  of
          Members (including unpaid amounts of the Development Fee);

     (6)  sixth,  to the Owner  Member  the amount of the  Unpaid  Owner  Member
          Preferred  Return and to the Developer Member the amount of the Unpaid
          Developer Member Preferred Return pari passu;

     (7)  seventh,  to the Owner Member an amount equal to the Unreturned  Owner
          Member Preferred Equity and to the Developer Member an amount equal to
          the Unreturned Developer Member Preferred Equity, pari passu; and

     (8)  last,  to the  Members in  accordance  with their  respective  Sharing
          Ratios as of the date of the distribution.

(b)  Distributions in Kind.  Unless agreed by unanimous  Consent of the Members,
     the  liquidator of the LLC shall not  distribute  any LLC Assets in kind to
     the Members.

10.3  Filings.  Upon each of the  dissolution  and  liquidation  of the LLC, the
Manager  shall file in the Filing  Office such  statements as are required to be
filed  under  the  Act  upon  the   dissolution  and  liquidation  of  the  LLC,
respectively,  and shall  promptly  notify the Members of such  dissolution  and
liquidation, respectively, and the filing of such statements.

                                   ARTICLE XI
                               DEFAULT; REMEDIES

11.1 Events of Default.  The  occurrence  of the  following  with respect to the
Manager or a Member  (sometime,  the  "Defaulting  Party"  or, if a Member,  the
"Defaulting  Member") shall constitute an event of default  hereunder ("Event of
Default"):

(a)  The failure of the Manager or any Member to perform any obligation required
     of it  hereunder  or any other breach of this  Agreement  which  failure or
     breach continues for more than * days following notice from the Manager, if
     it is not the Defaulting  Party,  or from a Member that is not a Defaulting
     Party (a "Non-Defaulting Member") of such failure or breach; or

(b)  As to the Manager or any Member:  (i)  Bankruptcy;  (ii) the  insolvency of
     such person or the execution by such person of a general assignment for the
     benefit of  creditors;  (iii) the  convening by such person of a meeting of
     its creditors, or any class thereof, for purposes of effecting a moratorium
     upon or extension or composition of its debts; or the failure  generally of
     such person to pay its debts as they become due; (iv) the levy, attachment,
     execution  or other  seizure of all or  substantially  all of the assets of
     such  person or such  person's  LLC  Interest  where  such  seizure  is not
     discharged within * days thereafter; or (v) the admission by such person in
     writing  of its  inability  to pay its  debts as they  mature or that it is
     generally not paying its debts as they become due; or

(c)  As to any Member,  the occurrence of a Transfer with respect to such Member
     or any member of such Member other than a Permitted Transfer.

11.2 Remedies.  Upon the occurrence of an Event of Default, the LLC, the Manager
and the Member shall have the following remedies:

(a)  Remedies  Generally.  Upon the  occurrence  of any  Event of  Default,  the
     Manager (unless the Manager is the Defaulting Party) and any Non-Defaulting
     Member may pursue any remedy  permitted by this  Agreement or allowed under
     law or in  equity,  including  specific  performance  and  prohibitory  and
     mandatory equitable relief.

(b)  Indemnification.  Any Defaulting Party shall indemnify and hold the Manager
     (unless the Manager is the Defaulting Party) and any Non-Defaulting  Member
     harmless from any actions,  causes of action, loss, cost, claim or expense,
     including attorney's fees, arising out of the Event of Default.

(c)  Arbitration.  Every  controversy,  claim or dispute under this Agreement or
     between or among any of the  Manager  and the  Members  relating to the LLC
     ("Arbitrable  Dispute") shall be resolved by or referred to arbitration (an
     "Arbitration Proceeding"), before a single neutral arbitrator in accordance
     with the AAA Rules and the terms and  conditions  of this Section  11.2(c).
     Whenever the terms of this Section 11.2(c) and the AAA Rules conflict,  the
     terms and conditions of this Section 11.2(c) shall control.

     (1)  Location.  All Arbitration  Proceedings shall be held and conducted in
          Denver. The location for an Arbitration Proceeding within Denver shall
          be as mutually  agreed by the  Arbitration  Parties,  but failing such
          agreement  within * days after a written  request  by any  Arbitration
          Party,  the Arbitration  Proceeding shall be conducted in the regional
          office of the AAA in Denver.

     (2)  Rules and Selection of Arbitrator.  Each Arbitration  Proceeding shall
          be limited to the specific  Arbitrable  Dispute(s)  in  question.  The
          arbitrator  appointed  must be (i) a  former  or  retired  judge  of a
          Colorado  District Court or any higher court in the State of Colorado,
          or (ii) an attorney with at least fifteen (15) years  experience  with
          commercial real estate development and/or  construction joint ventures
          who  has  not  acted  in any  capacity  for the  Owner  Member  or the
          Developer Member or any of their respective Affiliates during the five
          (5) year period prior to  appointment.  If agreement is not reached by
          the  Arbitration  Parties on the  selection of the  arbitrator  within
          thirty (30) days after  commencement  of an Arbitration  Proceeding as
          evidenced by (i) submission by the initiating  Arbitration  Party of a
          matter to the AAA in accordance  with the AAA Rules and (ii) notice to
          the other Arbitration  Parties of the initiating  Arbitration  Party's
          intention to arbitrate, then such arbitrator shall be appointed by the
          chief judge of the Denver  District  Court. In no event shall a demand
          for  arbitration  be made with respect to an Arbitrable  Dispute after
          the date when institution of legal or equitable  proceedings  based on
          such Arbitrable  Dispute would be barred by any applicable  statute of
          limitations.

     (3)  Powers of Arbitrator. Subject to Section 11.2(d), the arbitrator shall
          have the power to grant all legal and equitable relief (both by way of
          interim  relief and as a part of its final award) as may be granted by
          any  court  of the  State  of  Colorado  to carry  out the  terms  and
          conditions of this Agreement  specifically  including  prohibitory and
          mandatory declaratory relief and damages. All awards and orders of the
          arbitrator  (including,  interim  relief)  shall be final and binding,
          subject  to  confirmation,  correction  or  vacation  pursuant  to the
          Uniform  Arbitration  Act of 1975 as then in  effect  in the  State of
          Colorado (the "Arbitration Act").

     (4)  Discovery and Rules of Evidence. All Arbitration  Proceedings shall be
          conducted  as  expeditiously  as  reasonably  possible in keeping with
          fairness  and  with a  minimum  of  legal  formalities.  The  rules of
          evidence  shall not apply to any  Arbitration  Proceeding,  except the
          rules   relating  to   attorney/client   privilege  and  work  product
          protection,  which shall be applicable in all Arbitration Proceedings,
          and  only  limited  discovery  shall  be  allowed  in  an  Arbitration
          Proceeding. Unless otherwise ordered by the arbitrator on a showing of
          substantial  need, each Arbitration  Party shall be limited to one (1)
          document  production  request and three (3) depositions.  In addition,
          the Arbitration Parties shall exchange the names, qualifications and a
          narrative  report stating the opinion and basis therefor of any expert
          who may be  called,  * days  prior  to the  start  of the  Arbitration
          Proceeding.

     (5)  Timing.  Unless  modified  by the  arbitrator  upon a showing  of good
          cause,  all Arbitration  Proceedings  shall proceed upon the following
          schedule:  (i)  within * days  after the  service of the notice of the
          request to arbitrate upon Arbitration Parties, the Arbitration Parties
          shall select the arbitrator; (ii) within * days after selection of the
          arbitrator,  the Arbitration  Parties shall conduct a  pre-arbitration
          conference at which a schedule of  pre-arbitration  discovery shall be
          set, all  pre-arbitration  motions  scheduled and any other  necessary
          pre-arbitration  matters decided;  (iii) all discovery  allowed by the
          arbitrator   shall  be   completed   within  *  days   following   the
          pre-arbitration  conference; (iv) all pre-arbitration motions shall be
          filed  and  briefed  so that  they may be  heard no later  than * days
          following the  discovery  cut-off date;  (v) the  arbitration  hearing
          shall be scheduled to commence no later than * days after the decision
          on all pre-arbitration  motions, but in any event no later than * days
          following  the  service  of  the  notice  of   arbitration   upon  the
          Arbitration  Parties;  and (vi) the arbitrator shall render his or her
          written  decision   (including  any  and  all  findings  of  fact  and
          conclusions  of law) within * days  following  the  submission  of the
          matter to the arbitrator for decision. The foregoing schedule reflects
          the  maximum  time  allowed,  and  nothing  herein  shall  prevent the
          arbitrator  from  ordering  any action to be taken sooner if he or she
          concludes that the same is warranted by the circumstances.

     (6)  Transcript.  All proceedings  involving the Arbitration  Parties in an
          Arbitration  Proceeding  shall be reported  by a  certified  shorthand
          court reporter and written  transcripts of such  proceedings  shall be
          prepared and made available to all of the Arbitration Parties.

     (7)  Costs. The prevailing  Arbitration  Party shall be awarded  reasonable
          attorneys' fees, expert and non-expert witness costs and expenses, and
          other costs and expenses  incurred in connection with the arbitration,
          unless  the  arbitrator,  for  good  cause,  determines  otherwise.  A
          post-arbitration  proceeding to determine  costs, if needed,  shall be
          held  within * days after  notice of the award.  Costs and fees of the
          arbitrator  (including  the cost of the record of  transcripts  of the
          arbitration) shall be borne by the  non-prevailing  Arbitration Party,
          unless the arbitrator for good cause determines  otherwise.  Costs and
          fees payable in advance shall be advanced  equally by the  Arbitration
          Parties, subject to ultimate payment by the non-prevailing Arbitration
          Party in accordance with the preceding sentence.

     (8)  Reconsideration.  Within * days after receipt of the written  decision
          of the arbitrator,  any Arbitration Party shall have the right to file
          with the arbitrator a motion to reconsider,  and the arbitrator  shall
          then  reconsider the issues raised by the motion,  may allow the other
          Arbitration  Parties  an  opportunity  to respond  thereto,  and shall
          either confirm or change its decision within * days after such filing.
          Such revised or confirmed  decision shall then be final and conclusive
          upon the  Arbitration  Parties.  The costs (other than the  attorneys'
          fees of the respective  parties) of a motion for  reconsideration  and
          related proceedings shall be borne by the moving Arbitration Party.

     (9)  Specific Enforcement. The terms and conditions of this Section 11.2(c)
          shall be specifically enforceable under applicable law in any court of
          competent jurisdiction.  The award rendered by the arbitrator shall be
          final, subject to confirmation, correction or vacation pursuant to the
          Arbitration  Act,  and  judgment  may be  entered in  accordance  with
          applicable law in any court having jurisdiction thereof.

     (10) Interest on Award.  Any monetary  award of the  arbitrator may include
          interest at the rate of * per annum,  which interest shall accrue from
          the date of the  written  decision of the  arbitrator  to the date the
          award is paid.

     (11) Extraordinary  Remedies.  No provision of this Section  11.2(c)  shall
          limit the right of the  Manager  or any Member to  exercise  self-help
          remedies or to obtain  provisional or ancillary  remedies from a court
          of competent jurisdiction before, after, or during the pendency of any
          Arbitration  Proceeding.  The  exercise of any such  remedy  shall not
          waive the right of the Manager or such Member to resort to arbitration
          in accordance with this Section 11.2(c).

(d)  Limitation on Damages.  Notwithstanding  anything in this  Agreement to the
     contrary,  none of the Owner Member, the Developer Member or Frontier shall
     be entitled to seek,  claim or collect  damages in excess of the actual and
     direct damages actually  incurred or sustained as a result of a breach of a
     representation or warranty  contained herein or as a result of any Event of
     Default or otherwise  under this  Agreement or in connection  with the LLC,
     whether in an Arbitration Proceeding or otherwise.  Accordingly,  the Owner
     Member,  the Developer Member and Frontier each hereby expressly waives any
     right  to  seek,  claim  or  collect  any  punitive,   indirect,   special,
     speculative or  consequential  damages in connection with, or related to, a
     breach of a representation or warranty under this Agreement or any Event of
     Default or otherwise arising under this Agreement or in connection with the
     LLC.  Nothing in this  Section  11.2(d)  shall be  construed  to affect the
     rights and obligations of any person under the Frontier Lease.

                                  ARTICLE XII
                                 MISCELLANEOUS

12.1  Press  Releases  and  Confidentiality.  None of the  Manager or any Member
shall,  or permit any of their  respective  Affiliates to, make any statement or
release to the media any  information  regarding this Agreement or the terms and
conditions  hereof  unless the content and timing of said  statement  or release
shall have been  approved by  unanimous  Consent of the  Deciding  Members.  The
Manager  and each  Member  shall,  and  shall  cause  each of  their  respective
Affiliates  to, at all times,  keep the terms and  conditions of this  Agreement
confidential,  except as provided in the first sentence of this Section 12.l and
except to the extent reasonably  necessary (i) to comply with applicable law and
regulations;  (ii) to enforce  and carry out its  obligations  set forth in this
Agreement;  (iii) in any  Proceeding  pertaining to the Project,  the LLC or any
rights  of the  parties  under  this  Agreement;  or (iv) to  obtain  legal  and
financial  advice from its attorneys,  accountants and financial  advisors.  Any
disclosure  which is  permitted by this  Section  12.l shall  indicate  that the
information is confidential and should be so treated by the third party.

12.2  Notices.  All notices,  Consents or other  instruments  or  communications
provided  for under  this  Agreement  shall be in  writing,  signed by the party
giving the same,  and shall be deemed to be properly  given and  received on the
earlier of (i) when actually  delivered and  received,  personally,  by mail, by
messenger  service,  by fax or telecopy  delivery or otherwise;  and (ii) on the
next  Business Day after  deposit for delivery by an overnight  courier  service
such as Federal Express. All such notices or other instruments or communications
shall be furnished with delivery or postage charges prepaid and addressed to the
party as follows or to such other  address as such party may designate by notice
to the other party given in accordance with this Section:

                  If to the Developer Member or the Manager:
                  Shea Frontier Center LLC
                  c/o Shea Properties
                  300 West Plaza Drive, Suite 300
                  Highlands Ranch, Colorado 80126
                  Attention: Chester T. Latcham

                  with a copy to:

                  Legal Department
                  Shea Homes
                  300 West Plaza Drive, Suite 100
                  Highlands Ranch, Colorado 80126

                  If to the Owner Member:

                  c/o L. C. Fulenwider, Inc.
                  1125 17th Street, Suite 2500
                  Denver, Colorado 80202
                  Attention:  L. C. Fulenwider, III

                  with a copy to:

                  Slivka Robinson Waters & O'Dorisio, P.C.
                  1099 18th Street, Suite 2600
                  Denver, Colorado  80202-1926
                  Attention:  John W. O'Dorisio, Jr.

                  If to Frontier:

                  Frontier Airlines, Inc.
                  12015 E. 46th Ave., #200
                  Denver, CO  80239-3116
                  Attention:  General Counsel

12.3 Waivers.  Any party may waive any of the terms and  conditions  hereof made
for its benefit, and such waiver shall be effective when in writing and executed
and delivered thereby to the other parties. No waiver of any right or obligation
in any one instance shall preclude the exercise of such right or the enforcement
of such  obligation  in all other  instances,  nor shall the  single or  partial
exercise of any right or  enforcement  of any  obligation  preclude any other or
further exercise of such right or the enforcement of such obligation.

12.4 Successors and Assigns; No Third-Party Beneficiaries.  This Agreement shall
be  binding  upon and  inure to the  benefit  of the  parties  hereto  and their
successors  and permitted  assigns.  No person other than a party hereto and its
permitted  successors  and assigns may assert any right in connection  with this
Agreement.

12.5 Waiver of Action for Partition.  Each Member hereby  irrevocably waives any
right that it may have to maintain any action for partition  with respect to the
Land, the Project or any other LLC Asset.

12.6 Integration;  Incorporation;  Severability;  Modifications.  This Agreement
contains  the entire  agreement  between  the  parties as of the date hereof and
supersedes all prior representations,  warranties, agreements and understandings
except to the extent  expressly  preserved or  incorporated  herein.  All of the
exhibits,  schedules and appendices attached hereto are incorporated  herein. If
any provision  hereof or the application  thereof is held to be unenforceable in
any  jurisdiction,  the other provisions hereof shall be enforceable to the full
extent of the law of such jurisdiction.  Any  unenforceability  of any provision
hereof in any jurisdiction  shall not affect the  enforceability  thereof in any
other jurisdiction.  No provision hereof may be amended, modified,  supplemented
or waived except in accordance with a written instrument explicitly stating that
purpose and executed by the party  against which such  amendment,  modification,
supplement or waiver is being asserted.

12.7 Negotiated Provisions.  This Agreement shall not be construed more strictly
against  any  party  hereto  merely  by virtue of the fact that it may have been
prepared by counsel for one of the parties, it being recognized that the Manager
and the  Members  all  have  contributed  substantially  and  materially  to the
preparation of this Agreement.

12.8  Governing  Law.  This  Agreement  shall be  governed by and  construed  in
accordance with the laws of the State of Colorado.

12.9  Jurisdiction.  Each party (i) agrees that any  Proceeding  with respect to
this Agreement or any transaction  contemplated by this Agreement may be brought
only in the Denver,  Colorado  District Court or of the United States of America
for the District of Colorado,  sitting in Denver, (ii) accepts for itself and in
respect of its property,  generally and  unconditionally,  the  jurisdiction  of
those courts and (iii) irrevocably waives any objection, including any objection
to the laying of venue or based on the grounds of forum non conveniens, which it
may now or hereafter  have to the bringing of any legal action in those  courts;
provided,  however,  that any party may  assert  in an  Proceeding  in any other
jurisdiction or venue each mandatory defense, third-party claim or similar claim
that, if not so asserted in such Action,  may thereafter not be asserted by such
party in an original Proceeding in the courts referred to in clause (i) above.

12.10  Waiver of Jury Trial.  Each party  waives any right to a trial by jury in
any  Proceeding  to  enforce or defend any right  under  this  Agreement  or any
amendment,  instrument,  document or agreement delivered, or which in the future
may be  delivered,  in  connection  with  this  Agreement  and  agrees  that any
Proceeding (not including Arbitration  Proceedings with respect to which Section
11.2(c) shall apply) shall be tried before a court and not before a jury.

12.11  Costs  of Legal  Proceedings.  In the  event  that  any  party  hereunder
institutes legal proceedings (not including Arbitration Proceedings with respect
to which Section 11.2(c) shall apply) with respect to this Agreement or the LLC,
the  prevailing  party shall be  entitled  to recover,  in addition to any other
relief to which it is entitled,  its costs and expenses  incurred in  connection
with such legal proceedings, including reasonable attorney's fees.

12.12 Further Assurances.  The Manager and each Member covenants and agrees that
it will at any time and from time to time do, execute,  acknowledge and deliver,
or will cause to be done, executed, acknowledged and delivered, all such further
acts, documents and instruments as may reasonably be required by any other party
hereto  in order to carry  out and  effectuate  fully  the  transactions  herein
contemplated in accordance with this Agreement.

12.13 Counterparts. This Agreement may be executed in several counterparts, each
of which shall be  effective  as an original,  but all of which  together  shall
constitute one and the same instrument.

                            (Signature page follows.)

<PAGE>

         IN  WITNESS  WHEREOF,  each of the  undersigned  has  caused  its  duly
authorized  representative  to execute and deliver this Agreement as of the date
first written above.

                                        DEVELOPER MEMBER:

                                        SHEA FRONTIER CENTER, LLC, a California
                                        limited liability company

                                        By:  J.F. Shea Co., Inc., a Nevada
                                        corporation, its manager

                                        By:
                                        Name:
                                        Title:

                                        By:
                                        Name:
                                        Title:

                                        OWNER MEMBER:

                                        7001 TOWER, LLC, a Colorado limited
                                        liability company

                                        By:  L.C. Fulenwider, Inc., a Colorado
                                        corporation, its manager

                                        By:
                                        Name:
                                        Title:

                                        FRONTIER:

                                        Frontier Airlines, INC., a Colorado
                                        corporation

                                        By:
                                        Name:
                                        Title:

The LLC hereby  consents  to and agrees to be bound by the  foregoing  Operating
Agreement of Frontier Center One LLC.

                                        FRONTIER CENTER ONE LLC,
                                        a Colorado limited liability company

                                        By:  Shea Frontier Center, LLC, a
                                        California limited liability company,
                                        its manager

                                        By:  J.F. Shea Co., Inc., a Nevada
                                        corporation, its manager

                                        By:
                                        Name:
                                        Title:

                                        By:
                                        Name:
                                        Title:

         The Manager  hereby  consents to,  agrees to be bound by,  covenants to
perform  the  duties of and makes the  representations  and  warranties  of, the
Manager under the foregoing Operating Agreement of Frontier Center LLC.

                                        Shea Frontier Center, LLC, a California
                                        limited liability company

                                        By:  J.F. Shea Co., Inc., a Nevada
                                        corporation, its manager

                                        By:
                                        Name:
                                        Title:

                                        By:
                                        Name:
                                        Title:

<PAGE>

                                    EXHIBIT A

                                       to

                               OPERATING AGREEMENT

Developer's Pre-Development Work Product - See attached page(s).

<PAGE>

                                    EXHIBIT B

                                       to

                               OPERATING AGREEMENT

Legal Description of Land

Lot 3, Block 1, DENVER INTERNATIONAL  BUSINESS CENTER FILING NO. 8, according to
the recorded plat thereof, City and County of Denver, State of Colorado.

<PAGE>

                                    EXHIBIT C

                                       to

                               OPERATING AGREEMENT

Owner's Pre-Development Work Product - See attached page(s).

<PAGE>

                                    EXHIBIT D

                                       to

                               OPERATING AGREEMENT

Initial Project Development Plan - See attached page(s).STANDARD INDUSTRIAL LEASE

         THIS LEASE,  made this day of April 2000, by and between Mesilla Valley
Business  Park,  LLC  (hereinafter   "Landlord")  and  Frontier  Airlines,  Inc.
(hereinafter "Tenant").

W I T N E S S E T H:

         In  consideration  of the rents,  covenants and  agreements  herein set
forth, Landlord and Tenant enter into the following agreement:

1.   Definitions  and Key  Provisions.  The following  terms shall be defined in
     this Lease as follows:

          Premises: The space in the Building outlined on Exhibit "A" consisting
               of  approximately  * square feet of interior  building space plus
               the  approximately  * of an  acre  (for *  additional  automobile
               parking  spaces)  designated  as  parking  for  Tenant's  use  as
               identified on the Site Plan attached  hereto as Exhibit "B" (said
               acreage and any changes  thereto as provided  herein being called
               the "Additional Parking Area").

          Premises Area: * square feet.

          Project: The real estate and improvements  including the approximately
               * square foot building (the  "Building")  as shown on Exhibit "A"
               and  municipally  numbered as 1630 Hickory Loop, Las Cruces,  NM.
               The "Project" includes the Additional Parking Area.

          Tenant's Share: * (*) of the Operating  Expenses  attributable  to the
               Project  exclusive of the  Additional  Parking Area and * (*%) of
               the Operating  Expenses  attributable  to the Additional  Parking
               Area.

          Use: Airline  Call and  Reservation  Center  and/or  any other  lawful
               office use.

          Term:*  (*)  months  unless  terminated  earlier  as  provided  herein
               commencing on the Rent Commencement Date.

          Rent Commencement  Date:  The  earlier  of the date  Tenant  opens for
               business in the Premises or Substantial  Completion of Landlord's
               Work as provided in Section 31.

          Base Rent:   Months * and *       $           *           per month

                       Months * through *   $           *           per month

                       Months * through *   $           *           per month

                       Months * through *   $           *           per month

          Security Deposit:      $*

          Broker:      CB Richard Ellis - Chris Hook

2.   Granting  Clause.  In consideration of the obligation of Tenant to pay rent
     as herein provided and in consideration  of the other terms,  covenants and
     conditions  hereof,  Landlord  leases to  Tenant,  and  Tenant  takes  from
     Landlord, the Premises for the Term hereof.

3.   Quiet Enjoyment.  Notwithstanding  the fact that the Rent Commencement Date
     is subsequent to the effective  date of this Lease,  it is the intention of
     Landlord and Tenant that each have vested  rights  hereunder  and that this
     Lease  constitutes  a binding and valid  obligation  of each as of the date
     this Lease is fully executed. Tenant shall peaceably and quietly have, hold
     and enjoy the  Premises  for the term,  for the Use  specified in Section 1
     hereof subject, however, to all of the terms hereof and to all reservations
     in favor of Landlord,  all zoning ordinances and other laws and regulations
     governing  or  regulating  the  use of the  Premises,  and  all  easements,
     rights-of-way, and recorded instruments which affect the Premises. Landlord
     represents  and warrants that it has full right and authority to enter into
     this Lease.

4.   Security  Deposit.  Concurrently  with  Tenant's  execution  of this Lease,
     Tenant shall  deposit with  Landlord the  Security  Deposit  referenced  in
     Section 1 which shall be held by Landlord,  without obligation for interest
     or  segregation,  as security for  performance  of Tenant's  covenants  and
     obligations under this Lease, it being expressly understood and agreed that
     the  Security  Deposit  is not an  advance  rental  deposit or a measure of
     Landlord's damages in case of Tenant's default.  Upon the occurrence of any
     default by Tenant,  Landlord may, without  prejudice to any other available
     remedy,  use such fund to make good any rent arrearage or any other damage,
     injury,  expense or liability  caused by such event of default,  and Tenant
     shall  pay the  Landlord  within  * (*)  business  days of  written  demand
     therefore,  the amount so applied in order to restore the Security  Deposit
     to its original  amount.  If Tenant is not then in default  hereunder,  any
     remaining balance of such deposit shall be returned by Landlord to Tenant *
     (*) days after the termination of this Lease.

5.   Rent.

5.1  Base Rent.  Tenant  shall pay Base Rent to Landlord for the Premises in the
     amounts  set forth in Section 1. Said Base Rent shall be paid in advance on
     the first day of each month of the Term,  with  proration  to occur for any
     partial month if the Rent  Commencement Date is other than on the first day
     of a calendar month.  Payments  received by Landlord within the first * (*)
     days of any  month  shall not  constitute  an event of  default  hereunder.
     Simultaneous  with  Tenant's  execution of this Lease,  it shall prepay the
     Base Rent for Month * (*) (*). All rentals to be paid by Tenant to Landlord
     shall be in lawful money of the United  States of America and shall be paid
     without deduction or offset, prior notice or demand, on or before the first
     day of each and every month during the Term, and at such place or places as
     may be designated from time to time by Landlord. Tenant's obligation to pay
     rent  under  this  Lease  is  an   independent   covenant  and  no  act  or
     circumstance,  regardless of whether such act or circumstance constitutes a
     breach of this Lease by Landlord, shall release Tenant of its obligation to
     pay rent as required by this Lease.  Notwithstanding the fact that the Rent
     Commencement  Date may be subsequent to the effective date of the Lease, it
     is the  intention  of  Landlord  and Tenant  that each have  vested  rights
     hereunder and that this Lease constitutes a binding and valid obligation of
     each as of the date this  Lease is fully  executed.  Payments  received  by
     Landlord  within the first * (*) days of any month shall not  constitute an
     event of default hereunder.

5.2  Operating Expense Payments. It is the intention of Landlord and Tenant that
     Landlord  receive  the Base  Rent  "net" of all  other  charges  except  as
     expressly provided herein; accordingly,  beginning on the Rent Commencement
     Date,  Tenant shall pay as additional rent Tenant's Share of the "Operating
     Expenses" for the Project.  The term  "Operating  Expenses"  shall mean all
     reasonable  costs and  expenses  incurred by Landlord  with  respect to the
     ownership,  maintenance  and  operation of the Project,  including  but not
     limited to: Taxes (as provided in Section  11);  Insurance  (as provided in
     Section 14); utilities; maintenance, repair and replacement of all portions
     of the Project,  including  without  limitation,  signs,  fire  suppression
     systems (if any), repair or replacement of exterior surfaces, including but
     not limited to painting,  cleaning and graffiti removal,  paving of parking
     areas and  roads,  roof  (routine  maintenance  and repair  only),  alleys,
     landscaping,  line painting,  utility lines, lighting,  electrical systems;
     amounts  paid to  contractors  and  subcontractors  for  work  or  services
     performed in connection with the foregoing;  reasonable property management
     fees  (not to exceed  *% of gross  rent  payments)  (which,  at  Landlord's
     option,  may be payable to itself,  an affiliate  or third party  manager);
     deductibles on insurance loss; security services,  if any; trash collection
     and sweeping and compliance  with laws,  rules,  regulations  and orders of
     governmental  authorities.  Operating  Expenses do not include debt service
     under mortgages;  depreciation on the building; costs of restoration to the
     extent of net insurance proceeds received by Landlord with respect thereto;
     leasing  commissions;  or the cost of renovating space for other tenants of
     the Project or capital  expenditures  unless  incurred  by Landlord  with a
     principal purpose to: (i) effect a reduction in the Operating Expenses; and
     (ii)  keep  the  Project  in  compliance  with  applicable   laws,   rules,
     regulations and orders of governmental  authorities;  or any other expenses
     which,  in  accordance  with  generally  accepted  accounting   principles,
     consistently applied, would not be treated as operating costs by comparable
     landlords of  comparable  buildings or projects.  The costs of additions or
     alterations  which are required to be  capitalized  for federal  income tax
     purposes shall be amortized on a straight line basis over a period equal to
     the lesser of the useful life thereof for federal  income tax purposes or *
     (*) years. The portion of Operating Expenses attributable to the Additional
     Parking Area shall be determined by Landlord in its reasonable  discretion.
     For purposes of allocating  taxes on the land, the Additional  Parking Area
     will be  treated as  consisting  of * (*) of an acre.  Landlord  may at its
     option  increase  Tenant's Share of the Operating  Expenses (or any portion
     thereof) if in Landlord's reasonable opinion a disproportionate  allocation
     is necessary because of Tenant's use or operation.

     Landlord  shall  furnish  Tenant,  at the  inception of the Lease and on an
annual basis or upon any  significant  change in operating  expenses,  a written
statement  estimating  Tenant's Share of the Operating  Expenses for the current
calendar year (herein the "Estimate").  Beginning on the Rent  Commencement Date
and on the first day of each month during the Term, Tenant shall pay Landlord as
additional rent * (*) of the Estimate.  After Tenant's  receipt of notice of any
change in the estimate, Tenant shall have * (*) days to pay Landlord any amounts
due to Landlord for the cumulative  difference between the amount paid by Tenant
based upon the previous  estimate and the amount due Landlord based upon the new
estimate  which has  accrued  since the date of  Tenant's  receipt  of the prior
notice. As soon as practical after the end of each calendar year, Landlord shall
furnish Tenant a written statement showing Tenant's Share of the total Operating
Expenses  actually due for the calendar year ended (the "Actual  Expenses").  If
the Actual Expenses exceed the Estimate,  then Tenant agrees to pay within * (*)
business days of receipt of said  statement,  the  difference  between  Tenant's
Share of the Actual  Expenses  and the  Estimate.  If the  Estimate  exceeds the
Actual Expenses,  then Landlord agrees to refund the difference at the time that
such  statement  is  furnished,  provided  Tenant is not then in  default in the
performance of any of its obligations  under this Lease.  The provisions of this
Section  shall apply for any partial  calendar  year during  which this Lease is
effective,  subject to a pro rata  adjustment  based upon the number of calendar
months or portions thereof that this Lease is in effect.  Tenant's obligation to
pay and  Landlord's  obligation to reimburse such  difference  shall survive the
termination or expiration of this Lease.

     For purposes of this Section,  a year shall mean a calendar year except for
the first year of this Lease,  which shall begin on the Rent  Commencement  Date
and the last year which shall end at the expiration of the Lease.

     Tenant shall have the right to audit Landlord's books and records detailing
Operating  Expenses  for the Project for the prior year.  Any such audit will be
scheduled on  reasonable  prior notice to Landlord and shall occur at Landlord's
address as provided on the signature page of this Lease. Tenant will conduct any
such audit within * (*) days of  Landlord's  delivery of the statement of Actual
Expenses.  Tenant shall provide Landlord with a copy of such audit. If the audit
discloses  an  underpayment  by Tenant,  it shall  promptly  pay said  amount to
Landlord.  If the audit  correctly  reflects an overpayment by Tenant,  Landlord
shall promptly  refund such  overpayment to Tenant.  If the  overpayment is more
than * (*), Landlord shall pay to Tenant the reasonable costs of such audit.

5.3. Late  Charges.  Tenant  agrees to pay a late charge of * (*) as  additional
     rent for each payment due hereunder that remains unpaid for more than * (*)
     days  after  the due  date to  cover  Landlord's  administrative  costs  of
     processing such late payment.  In addition to said late charge,  any rental
     or other  amount due from Tenant  under this Lease which is more than * (*)
     days  delinquent  shall bear  interest  from the date such  rental or other
     amount  was due at the  lesser  of the  rate of * (*) per  year or the then
     maximum  nonusurious rate under applicable law, (the lesser of said amounts
     being  herein  referred  to as the  "Maximum  Rate.") In the event the late
     charge is ever deemed to be  "interest"  the amount of interest on past due
     amounts shall be automatically reduced so that the combination of said late
     charge and the  interest on past due amounts,  if any,  does not exceed the
     Maximum Rate. Any amount  collected  which exceeds the Maximum Rate will be
     deemed  credited to other  amounts  owed by Tenant to  Landlord  under this
     Lease,  and any  remaining  excess  after such credit  shall be refunded to
     Tenant. It is the intent of both Landlord and Tenant to at all times comply
     with the applicable law regarding the maximum nonusurious amount or rate of
     interest which may be contracted for, charged,  taken, reserved or received
     by Landlord.  Any rental and/or other  payments due  hereunder  returned to
     Landlord marked  "Insufficient  Funds" will entitle  Landlord to collect an
     additional $* from Tenant for each such payment.

6.   Conduct of Business of Tenant.

6.1. Use of Premises.  The Premises  shall be occupied and used by Tenant solely
     for the purpose of conducting  therein the Use  authorized in Section 1 and
     for no other purpose without  Landlord's prior written consent,  which will
     not  be  unreasonably  withheld.  Tenant's  acceptance  of  occupancy  from
     Landlord  shall  constitute   acknowledgment  by  Tenant  that  Tenant  has
     inspected the Premises and the Project of which the Premises are a part and
     that same are suitable for Tenant's  intended use thereof as stated in this
     Paragraph.  Tenant  recognizes  and  agrees  that  Landlord  is  making  no
     warranties,  expressed or implied, as to the suitability of the Premises or
     the Project for any particular use. Unless otherwise expressly set forth in
     this Lease, Tenant accepts the space "AS IS" with all faults.

6.2. Operation by Tenant. Tenant covenants and agrees to the following:

     (a)  Tenant, at Tenant's expense,  shall comply with all present and future
          laws,  rules,   orders,   ordinances,   directions,   regulations  and
          requirements  of  federal,  state,  county and  municipal  authorities
          regardless of when they become  effective,  pertaining to Tenant's use
          or  occupancy  of  the  Premises  and  with  any  recorded  covenants,
          conditions and  restrictions  (copies of said  covenants  conditions &
          restrictions  will be  provided  to  Tenant by  Landlord  prior to the
          execution  hereof),  all  applicable  federal,  state and local  laws,
          regulations  or ordinances  pertaining to air, soil and water quality,
          Hazardous  Materials  (as  defined  in  Section  29.3  hereof),  waste
          disposal,  air emissions and other  environmental,  health and safety,
          zoning and land use matters,  the Americans with  Disabilities  Act or
          similar laws and with any directive or order of any public  officer or
          officers,  pursuant  to law,  which  impose any duty upon  Landlord or
          Tenant with respect to the use or occupancy of the Premises;

     (b)  Tenant shall comply with all  requirements  of any authority or agency
          having  jurisdiction  over the insurance rates with respect to the use
          or occupancy of the Premises;

     (c)  Landlord shall have the exclusive right to use the roof, side and rear
          walls of the Premises for any  purpose,  including  but not limited to
          erecting  signs or other  structures on or over all or any part of the
          same,  erecting  scaffolds  and  other  aids to the  construction  and
          installation  of  the  same,  and  installing,   maintaining,   using,
          repairing,  and  replacing  pipes,  ducts,  conduits and wires leading
          through,  to or from  the  Premises  and  serving  other  parts of the
          Project in locations  which do not materially  interfere with Tenant's
          use of the  Premises.  Tenant  shall have no right  whatsoever  to the
          exterior or exterior walls, or the roof of the Premises or any portion
          of the Project outside the Premises,  except as otherwise  provided in
          this Lease. Notwithstanding the foregoing, Tenant shall have the right
          to  install  satellite  antennas  and  other  related   communications
          equipment  on  the  roof,  immediately  above  Tenant's  premises,  at
          Tenant's  sole cost and expense,  provided  that (1) such antennas and
          equipment  comply with all applicable  laws,  ordinances and rules and
          regulations;  (2)  Landlord  shall have the right to approve the plans
          therefore,  which Landlord will not unreasonably withhold provided any
          roof penetrations  will not void Landlord's  warranties on the roofing
          system;  and (3) such  antennas and equipment do not overload the load
          bearing  capacity of the walls or roofing  system.  (d) Tenant  agrees
          that it shall not use or permit the  Premises  to be used for an adult
          book  store,   adult  motion  picture   theater,   nude  or  semi-nude
          entertainment club, or similar adult entertainment establishment.

7.   Rules and Regulations.  Tenant and Tenant's agents, employees, and invitees
     shall faithfully observe and comply with all reasonable,  uniform rules and
     regulations  promulgated by Landlord from time to time for the safety, care
     or cleanliness of the Project for the  preservation  of good order therein.
     Provided,  however,  Landlord has no obligation to promulgate such rules or
     regulations.   Landlord   shall  not  be  responsible  to  Tenant  for  the
     nonperformance by any other tenant or occupant of the Project of any of the
     rules and regulations. Landlord will use commercially reasonable efforts to
     enforce the rules and regulations.

7.1  A. Any rules and  regulations  imposed by  Landlord  after the date of this
     Lease shall be: (i) reasonable and  consistent  with rules and  regulations
     imposed on similar  properties;  (ii) no more burdensome than the rules and
     regulations  attached hereto; (iii) subject to the other provisions of this
     Lease;  (iv) related only to common areas, not the Premises;  (v) uniformly
     enforced; and (vi) effective only after Tenant has had at least thirty (30)
     days prior written notice of their enactment.

8.   Parking and Use of Common Area and Facilities.

8.1. Common Area. All parking areas, access roads and facilities furnished, made
     available or  maintained  by Landlord on the Project for the general use in
     common of tenants of the Project  and their  invitees in the Project or the
     Premises,  including the Additional  Parking Area,  truck ways,  driveways,
     loading  docks and  areas,  delivery  areas,  pickup  stations,  pedestrian
     sidewalks,  courts and ramps, landscaped areas, retaining walls, stairways,
     hallways,  common restrooms,  lighting facilities,  and other similar areas
     and  improvements  provided  by  Landlord  for the general use in common of
     tenants of the Project and their customers (herein  collectively called the
     "Common  Area") shall at all times be subject to the control and management
     of  Landlord.  Tenant  acknowledges  that it  does  not  have an  exclusive
     interest in the Common Area.  Subject to the terms and  conditions  of this
     Lease concerning the Additional  Parking Area,  Landlord reserves the right
     to grant such easements and other rights in the Common Area as Landlord may
     from time to time deem necessary,  including without limitation,  easements
     for mutual  ingress  and  egress,  truck  turning,  utilities,  and similar
     matters for the benefit of adjacent  properties.  Landlord may, at its sole
     option,  modify the Common Areas or make such  changes  thereto as Landlord
     deems reasonably  necessary,  as long as such  modifications do not prevent
     Tenant's reasonable access to or use of the Premises as permitted herein.

8.2. Use of Common  Area.  Subject  to the Terms and  conditions  of this  Lease
     concerning  the  Additional  Parking  Area,  Tenant and  Tenant's  business
     invitees,  employees and customers  shall have the  nonexclusive  right, in
     common with  Landlord  and all others to whom  Landlord  has granted or may
     hereafter grant rights, to use the Common Area, subject to such reasonable,
     uniform rules and  regulations as Landlord may from time to time impose and
     the rights of  Landlord  set forth  above.  Landlord  may at any time close
     temporarily  all or any part of the Common Area to make repairs or changes,
     to  prevent  the  acquisition  of public  rights  therein  or for any other
     reasonable  purpose as long as such  modifications  do not prevent Tenant's
     reasonable  access to or use of the Premises as permitted  herein..  Tenant
     shall not interfere  with the other  tenants'  right to use any part of the
     Common Area.  Landlord  shall not be  responsible  for  enforcing  Tenant's
     parking  rights  against any third  parties.  Nothing herein shall obligate
     Landlord to maintain  or provide any  security  services or systems for the
     Project. Tenant agrees that Landlord shall not be liable to Tenant for, and
     Tenant waives any claim against Landlord with respect to, any loss by theft
     or any other damage  suffered or incurred by Tenant in connection  with any
     unauthorized  entry into the Premises or other  criminal or willful acts of
     third parties.

8.3. Parking.  The "Premises" includes the area identified on Exhibit "B" as the
     "Additional Parking Area." Provided Tenant is operating in the Premises for
     the Use specified in Section 1, Landlord agrees to make available to Tenant
     a total of * (*) exclusive  parking spaces  (including  handicap spaces) as
     initially  designated  on the attached  Site Plan as Exhibit  "B".  Parking
     spaces will be marked  "Frontier  Parking  only." Tenant agrees to only use
     those exclusive parking spaces marked Frontier Parking, and no other spaces
     within the Project or parking areas shown on Exhibit "B". Landlord reserves
     the right to reconfigure or relocate the Additional  Parking Area and other
     parking  areas within the Project from time to time  provided  that parking
     available  to Tenant  within the Project is not  diminished  to less than *
     parking  spaces in  reasonably  close  proximity to the  Premises,  without
     Tenant's consent. In the event the square footage of the Additional Parking
     Area is  reduced as the result of such a  reconfiguration,  the  Additional
     Parking Area will nevertheless be treated as consisting of * (*) of an acre
     for allocation of real property taxes.

9.   Maintenance of Premises.

9.1. Maintenance  by  Landlord.  Landlord  shall  keep or  cause  to be kept the
     foundations,  roof (except for the HVAC System portions thereof as provided
     in Section  9.2) and  structural  portions of the walls of the  Premises in
     good order,  repair and condition except for damage thereto due to the acts
     or omissions of Tenant,  its agents,  employees,  contractors  or invitees.
     Landlord shall commence required repairs as soon as reasonably  practicable
     after receiving  written notice from Tenant thereof.  Except as provided in
     this   Paragraph,   Landlord  shall  not  be  obligated  to  make  repairs,
     replacements  or  improvements  of any kind  upon the  Premises,  or to any
     equipment, merchandise, stock in trade, facilities or fixtures therein, all
     of which  shall  be  Tenant's  responsibility.  Without  limitation  on the
     foregoing,  Tenant agrees that Landlord shall have no obligation to provide
     any janitorial service to the Building.

9.2. Maintenance  by  Tenant.  Tenant  shall at all times  keep all parts of the
     Premises not required  herein to be  maintained  by Landlord in good order,
     condition and repair and in a clean, orderly,  sanitary and safe condition,
     damage  by  unavoidable  casualty  excepted.   Without  limitation  on  the
     foregoing,  Tenant's repair and maintenance  obligations  shall include all
     glass,  signage,  windows,  doors,  fixtures,  equipment and  appurtenances
     thereof; lighting, electrical and plumbing appurtenances;  and all interior
     and exterior  heating,  ventilation  and  air-conditioning  equipment "HVAC
     System."  Tenant's  obligations  shall  include but not be limited to doing
     such things as necessary  to cause the  Premises to comply with  applicable
     laws,  rules,  regulations and orders of governmental and public bodies and
     agencies.  If replacement of equipment,  fixtures and appurtenances thereto
     are necessary,  Tenant shall replace the same with equipment,  fixtures and
     appurtenances  of the same quality,  and shall repair all damages caused by
     such replacement.  At the termination of this Lease, Tenant shall surrender
     the Premises in the same condition as they were on the  Commencement  Date,
     reasonable  wear  and  tear  excepted,  and  deliver  all  keys for and all
     combinations  on locks,  safes  and  vaults in the  Premises  to  Landlord.
     Notwithstanding  the above,  Landlord  reserves  the right  upon  notice to
     Tenant to enter  into a  maintenance  contract  with a third  party for the
     maintenance  and  repair  of all or any  portion  of the  HVAC  System.  If
     Landlord enters into such a contract,  Tenant agrees to reimburse  Landlord
     for all costs associated with such contract within * (*) business days of a
     billing therefore.

9.3. Fire Equipment. Tenant agrees to supply and maintain at its own expense any
     fire  extinguishers  required by local  ordinance or other fire  protection
     equipment  required  as a result of  Tenant's  use.  Landlord to supply and
     install  any  other  fire  protection  equipment  required  by law or local
     ordinance or as desired by Landlord,  if such equipment is required for the
     building independent of Tenant's use.

9.4. No Consent.  Tenant's  maintenance and other  obligations  under this Lease
     shall not be  construed  as granting  authority or consent to the Tenant to
     create  any  mechanic's  or  materialman's  lien  upon the  Property  or to
     subordinate Landlord's or Landlord's lenders rights.

10.  Alterations, Liens and Signs.

10.1.Alterations.  Tenant will not paint,  decorate or change the  architectural
     treatment  of any part of the  exterior of the  Premises or  construct  any
     changes to the interior of the Premises,  without  Landlord's prior written
     approval  thereto,   which  approval  will  not  be  unreasonably  withheld
     conditioned  or delayed,  and will promptly  remove any paint,  decoration,
     alteration,  addition or changes  applied or installed  without  Landlord's
     approval  or take such  other  action  with  respect  thereto  as  Landlord
     reasonably  directs.  Tenant  shall  not make any  structural  alterations,
     additions  or  changes to the  Premises.  Tenant  may,  at its own cost and
     expense erect shelves,  bins,  racks and removable  (i.e.,  not permanently
     attached to the realty) trade fixtures  (collectively  "Trade Fixtures") in
     the ordinary  course of its business  provided  such items do not alter the
     basic character of the Premises, do not damage the Premises, may be removed
     without  injury  to  the  Premises  and  the  construction,   erection  and
     installation  thereof  complies  with  all  legal  requirements  and  other
     provisions  of this Lease.  If  Landlord  grants  consent to any  requested
     alterations,  the alterations shall be performed in a good, workmanlike and
     lien free manner in accordance with all applicable  legal  requirements and
     any  restrictions  which may be imposed by Landlord  as a condition  to its
     consent. All alterations, changes, additions and all leasehold improvements
     made by Tenant or made by  Landlord  on  Tenant's  behalf and all  fixtures
     installed  by Tenant which are not Trade  Fixtures are herein  collectively
     referred to as "Tenant  Additions",  and shall be the property of Landlord.
     Such  Tenant  Additions  shall  not be  removed  by  Tenant  on,  before or
     following expiration or termination of the Lease without Landlord's consent
     except as may be required pursuant to Section 27.1.

10.2.Liens.  Tenant shall promptly pay all contractors and materialmen,  and not
     permit or suffer any lien to attach to the  Premises or Project or any part
     thereof,  and  indemnify  and save  harmless  Landlord  against  the  same.
     Landlord  shall have the right to require Tenant to furnish a bond or other
     indemnity satisfactory to Landlord prior to the commencement of any work by
     Tenant on the Premises  costing in excess of $*. If any lien attaches or is
     claimed, Tenant, within * (*) days following the imposing of any such lien,
     shall  cause the same to be released of record by payment or by petition to
     cancel the lien and posting  such  security as is  required.  Tenant has no
     express or implied  authority to create or place any lien or encumbrance of
     any kind upon,  or in any manner to bind the  interest  of  Landlord in the
     Premises  or Project or to charge the  rentals  payable  hereunder  for any
     claim  in favor of any  person  dealing  with  Tenant,  including,  without
     limitation,  those  who may  furnish  materials  or  perform  labor for any
     construction or repairs.

10.3.Signs.  Tenant will not place or permit on any  exterior  door or window or
     any exterior  wall of the Premises any sign,  awning,  canopy,  advertising
     matter,  decoration,  lettering  or other  thing of any kind which does not
     comply  with the  existing  Sign  Criteria  for the Project as set forth in
     Exhibit "C" attached hereto.  Landlord has installed,  at its expense, four
     (4) permanent sign(s) in compliance with said Sign Criteria.  Tenant agrees
     within thirty (30) days of the Rent  Commencement Date to have Tenants logo
     or  lettering  placed on  existing  said box  sign(s)  on the facade of the
     Premises.  Tenant  shall,  at its expenses,  maintain  such  signage.  Such
     maintenance shall include without limitation,  the replacing of light bulbs
     and other  lighting  materials  and any broken  panels or the like.  Tenant
     shall keep said sign lit during the operating  hours of the Project as such
     hours are determined by Landlord regardless of whether Tenant's business is
     open during this time.  Tenant shall remove such sign upon  termination  of
     this Lease. Such installation and removal shall be done in such a manner as
     to avoid injury,  defacement or overloading  of the Premises.  Tenant shall
     not be permitted to individually install a street-side sign on its behalf.

11.  Real Estate Taxes.  Landlord has the sole right to render the Project, land
     and any improvements thereon to any appropriate taxing authorities. Tenant,
     as additional rent, agrees to pay Tenant's Share of all taxes (both general
     and special),  assessments,  or governmental charges (hereinafter  "Taxes")
     lawfully  levied or assessed  against the Premises,  Project or any portion
     thereof, including without limitation any gross receipts or similar tax and
     all  taxes on the  Additional  Parking  Area,  but  specifically  excluding
     Landlord's income taxes,  excess profit taxes,  franchise taxes, or similar
     taxes on Landlord's business.  Tenant's Share of the taxes shall be payable
     as additional  rent in accordance  with Section 5.2.  Additionally,  Tenant
     shall pay to Landlord upon demand,  Tenant's Share of all reasonable  costs
     (including tax consultant  and/or  attorney's fees) incurred by Landlord in
     connection with any protest or contest of the valuation of taxes imposed on
     the Project or land. Provided,  however,  Landlord shall have no obligation
     to take  any such  action.  Tenant  shall  have the  right to  inspect,  at
     Landlord's   business  office  during  regular   business  hours  and  upon
     reasonable  notice to Landlord,  the tax bills which Landlord receives from
     the applicable taxing authorities.

12.  Personal  Property Taxes.  During the Term of this Lease,  Tenant shall pay
     prior to delinquency  all taxes assessed  against and levied upon fixtures,
     furnishings,  equipment and all other personal property of Tenant contained
     in the Premises. When possible, Tenant shall cause its personal property to
     be assessed and billed  separately  from the real property of Landlord.  If
     any of Tenant's  personal  property shall be assessed with  Landlord's real
     property, Tenant shall pay Landlord the taxes attributable to Tenant within
     * (*) business  days after receipt of a written  statement  therefor or, at
     Landlord's option as provided in Section 11.

13.  Utilities.  Tenant  agrees to pay before  delinquency  all  charges for all
     utilities   (including  but  not  limited  to  gas,  water,   heat,  sewer,
     electricity, telephone, garbage removal, water meter charges and all hookup
     or  connection  fees or  charges)  which may  accrue  with  respect  to the
     Premises during the Term of this Lease.  Additionally,  Tenant shall pay to
     Landlord, as additional rent, upon demand,  Tenant's Share of any utilities
     which are not separately metered based upon usage as reasonably  determined
     by  Landlord.  Landlord  shall in no  event be  liable  to  Tenant  for any
     interruption  in  the  service  of any  such  utilities  to  the  Premises,
     howsoever such  interruption may be caused and this Lease shall continue in
     full force and effect  despite  any such  interruptions.  Tenant  agrees to
     limit use of water and sewer to normal  restroom use.  Tenant  acknowledges
     that it has inspected  the utilities  available to the Premises and that it
     has determined that such utilities are sufficient for all anticipated  uses
     of the Premises.  Tenant shall not install any equipment or make any use of
     the Premises which overloads the utilities available to the Premises and if
     Landlord  deems  Tenant's  use of  equipment  to be in  violation  of  this
     provision,  Landlord may, in addition to such other remedies which Landlord
     has hereunder, require Tenant, at Tenant's expense, to upgrade such utility
     lines and related equipment including without limitation transformers.

14.  Insurance; Waiver; Indemnification.

14.1.Landlord's  Obligation.  During the Term of this Lease and any extension or
     renewal hereof, Landlord shall procure and maintain such "all risk property
     and general liability"  insurance coverage on the Project as Landlord deems
     appropriate,   but  not  less  than  full  replacement  cost  coverage,  as
     reasonably determined by Landlord,  including,  if Landlord so elects, loss
     of rental insurance in an amount of one or more year's annual rental.

14.2. Tenant's Obligations.

14.2.1. All Risk Property and General  Liability.  Tenant,  as additional  rent,
     shall pay to Landlord an amount  equal to  Tenant's  Share of all  premiums
     paid by Landlord for the  insurance  coverage  described  in Section  14.1.
     Tenant's Share of such premiums is payable as additional rent in accordance
     with Section 5.2.

14.2.2.  Liability.  Tenant  shall  procure and maintain a policy or policies of
     insurance insuring both Landlord and Tenant against all claims,  damages or
     actions  arising out of or in connection  with Tenant's use or occupancy of
     the Premises or by the condition of the Premises, the limits of such policy
     or policies to be in an amount not less than $* per  occurrence,  and in an
     amount not less than $* in the  general  aggregate  for  bodily  injury and
     property damage.  Said policy or policies shall additionally  include "Fire
     Legal Liability" insurance coverage in the maximum allowable amount. Tenant
     shall also maintain  workman's  compensation  insurance on its employees in
     the required statutory amounts.

14.2.3. Personalty Coverage.  Tenant also agrees to carry insurance against fire
     and such other risks as are from time to time included in standard extended
     coverage insurance,  for the full insurable value, covering all of Tenant's
     merchandise,  trade fixtures,  furnishings,  wall covering, floor covering,
     carpeting,  drapes,  equipment and all items of personal property of Tenant
     located on or within the  Premises.  All property in the  Premises  will be
     kept at Tenant's risk.

14.2.4.  Construction  Liability.  Tenant,  at its own cost and  expense,  shall
     obtain  and  maintain  at  all  times  when  demolition,   excavation,   or
     construction  work  is in  progress  being  done  by  Tenant  (specifically
     excluding any of the "Landlord Work" as designated herein) on the Premises,
     construction  liability  insurance  with  limits of not less than $* and $*
     combined  single  limit in the  general  aggregate  for  bodily  injury and
     property  damage,  protecting  Landlord  and  Tenant as well as such  other
     person or persons as Tenant may designate against any and all liability for
     injury or damage to any person or  property  in any way arising out of such
     demolition, excavation, or construction work.

14.2.5. Form of Insurance.  All policies required of Tenant hereunder shall: (i)
     be issued by a reputable  insurance company qualified to do business in the
     State of New Mexico and with an A.M.  Best rating  company of not less than
     "A-"  according to the most recent rating  thereof  acceptable to Landlord;
     (ii) name Landlord as an additional  insured and Tenant as a named insured;
     (iii) provide that they cannot be canceled for any reason  unless  Landlord
     is given * (*) days prior  written  notice by the insurer;  (iv) state that
     such  insurance is primary  over any  insurance  carried by  Landlord;  (v)
     contain  an  endorsement  in  favor of  Landlord,  waiving  such  insurance
     company's  right  of  subrogation  against  Landlord;  and (vi)  contain  a
     statement  that the current  installment of the premium for such policy has
     been paid in advance.  A duly executed  certificate  of insurance  shall be
     delivered  to  Landlord  prior to Tenant's  occupancy  and will be attached
     hereto as Exhibit "D." All renewals shall be delivered to Landlord at least
     * (*) days prior to the expiration of the respective policy terms. Landlord
     shall  have the right to review  said  insurance  amounts  at least  yearly
     during the Term of this Lease and require Tenant to increase said insurance
     policies to provide coverage in such amounts as Landlord,  in its sole, but
     reasonable discretion,  deems necessary.  Moreover,  should Tenant's use of
     the  Premises (or any vacancy by Tenant)  result in an increased  insurance
     rate, Landlord may, in its discretion allocate such amount of the insurance
     premium to Tenant as  Landlord  deems  reasonable  to pass the cost of such
     increased  premium  through  to Tenant  rather  than  other  tenants of the
     Project.  Tenant  agrees to procure and maintain said  increased  insurance
     coverage.  The insurance  required of Landlord  hereunder may be maintained
     under a blanket or master policy which includes  properties  other than the
     Project.

14.3.Mutual Waiver of  Subrogation  Rights.  Landlord and Tenant and all parties
     claiming  under them mutually  release and  discharge  each other and their
     respective  officers,  directors,  partners,  employees and agents from all
     claims and liabilities  arising from or caused by any casualty or hazard to
     the extent covered by valid and collectible  insurance on the Project;  and
     waive any right of subrogation  which might otherwise exist in or accrue to
     any person on account thereof; provided that such release shall not operate
     in any case where the effect is to invalidate such insurance coverage. This
     release shall apply even if the loss or damage shall be caused by the fault
     or  negligence  of a party hereto or for any person for which such party is
     responsible.

14.4.Waiver.  Landlord,  its agents and employees,  shall not be liable for, and
     Tenant waives all claims for damage  (except  claims caused by or resulting
     from the  negligence  or  willful  misconduct  of  Landlord,  its agents or
     employees),  including but not limited to consequential damages, to person,
     property or otherwise,  sustained by Tenant or any person claiming  through
     Tenant resulting from any accident or occurrence in or upon any part of the
     Premises or the Project,  including  but not limited to,  claims for damage
     resulting from: (a) any equipment or appurtenances  becoming out of repair;
     (b) injury done or caused by wind,  water, or other natural  elements;  (c)
     any  defect  in  or  failure  of  plumbing,   heating  or  air-conditioning
     equipment,  electric wiring or installation  thereof, gas, water, and steam
     pipes,  stairs,  porches,  railings  or walks;  (d) broken  glass;  (e) the
     backing up of any sewer pipe or  downspout;  (f) the  bursting,  leaking or
     running of any tank, tub,  washstand,  water, snow or ice upon the Premises
     or the  Project;  (g) the falling of any  fixture,  plaster or stucco;  (h)
     damage to or loss by theft or  otherwise  of  property of Tenant or others;
     (i) acts or omissions of other  persons in the  Premises,  other tenants in
     the Project,  occupants of nearby properties, or any other persons; and (j)
     any act or  omission  of owners of adjacent  or  contiguous  property.  All
     property of Tenant kept in the Premises  shall be so kept at Tenant's  risk
     only and Tenant shall  indemnify,  defend and save  Landlord  harmless from
     claims arising out of damage to the same,  including  subrogation claims by
     Tenant's insurance carrier.

14.5. Indemnification. Intentionally omitted.

15.  Right of Entry. Landlord, its agents and employees, shall have the right to
     enter the Premises  from time to time at  reasonable  times to examine,  to
     show them to prospective  purchasers  and other  persons,  and to make such
     repairs, alterations, improvements or additions as Landlord deems desirable
     as  long  as  Tenant's  use of the  Premises  is not  materially  disrupted
     thereby. Rent shall not abate during any such entry by Landlord,  including
     without  limitation,  during the period of any such  repairs,  alterations,
     improvements, or addition unless Tenant's use of the Premises is materially
     disrupted  thereby and then only to the extent of such  disruption.  During
     the last * (*) months of the Term of this Lease,  Landlord  may exhibit the
     Premises to  prospective  tenants and maintain  upon the  Premises  notices
     deemed advisable by Landlord.  In addition,  during any apparent emergency,
     Landlord, its agents and employees, may enter the Premises forcibly without
     liability therefor and without in any manner affecting Tenant's obligations
     under this Lease.  Nothing herein  contained,  however,  shall be deemed to
     impose  upon   Landlord  any   obligation,   responsibility   or  liability
     whatsoever,  for any care, maintenance or repair except as otherwise herein
     expressly provided.

16.  Subordination  and  Attornment.  Tenant  accepts  this  Lease  subject  and
     subordinate  to any  mortgage,  deed of  trust,  or  other  lien  presently
     existing on the Project or the Land or subsequently created on the Project,
     and to any renewals and extensions thereof, but Tenant agrees that any such
     mortgagee  shall have the right at any time to  subordinate  such mortgage,
     deed of trust, or other lien to this Lease.  Landlord is hereby irrevocably
     vested  with full  power and  authority  to  subordinate  this Lease to any
     mortgage,  deed of trust, or other lien hereafter  placed on the Project or
     the Land,  and Tenant agrees on demand to execute such further  instruments
     subordinating   this  Lease  as  Landlord   may  request,   provided   such
     subordination  shall be on the express  condition  that this Lease shall be
     recognized by the mortgagee,  and that the rights of Tenant shall remain in
     full force and effect during the Term of this Lease so long as Tenant shall
     continue to perform all of the covenants and  conditions of this Lease.  No
     such  mortgagee  shall be required to assume any  liabilities  for defaults
     occurring  prior to its  ownership of the  Project.  Tenant  covenants  and
     agrees  that  upon  foreclosure  of any deed of  trust,  mortgage  or other
     instrument  of security and the sale of the Project or the Land pursuant to
     any  such  document,  to  attorn  to any  purchaser  at such a sale  and to
     recognize such purchaser as the Landlord under this Lease. The agreement of
     Tenant to attorn to any purchaser  pursuant to such a  foreclosure  sale or
     trustee's sale in the immediately preceding sentence shall survive any such
     sale.

17.  Estoppel  Certificate.  Tenant  shall  at any  time,  upon the  request  of
     Landlord,  execute,  acknowledge  and deliver to  Landlord a  statement  in
     writing  certifying  that this  Lease is  unmodified  and in full force and
     effect  (or if  modified  stating  the  nature  of  such  modification  and
     certifying  that the Lease as  modified is in full force and  effect),  the
     dates to which the rent and other charges are paid in advance,  if any, and
     acknowledging  that  there are not,  to  Tenant's  knowledge,  any  uncured
     defaults on the part of Landlord hereunder,  or specifying such defaults if
     any are claimed.  The parties  hereto agree that any such  statement may be
     relied upon by any  prospective  purchaser  or  encumbrancer  of all or any
     portion of the  Project  or the Land.  Tenant's  failure  to  deliver  such
     statement within * (*) business days after Landlord's request for the same,
     shall be conclusive  upon Tenant that:  (i) this Lease is in full force and
     effect;  (ii) this  lease  has not been  modified  or  amended  other  than
     expressly  stated;  (iii)  there  are no  uncured  defaults  in  Landlord's
     performance;  and (iv) not more than one month's  rent or other  charge has
     been paid in advance.

18.  Damage and Destruction.  If the Premises are hereafter damaged or destroyed
     or rendered partially  unuseable by Tenant for their accustomed use by fire
     or other casualty and such fire or other casualty is not caused directly or
     indirectly  by the fault or negligence  of Tenant,  its agents,  employees,
     contractors or invitees,  Landlord shall, unless the Lease is terminated as
     below,  promptly repair the same to substantially  the condition which they
     were in  immediately  prior to the  happenings of such casualty  (excluding
     stock  in  trade,  fixtures,  furniture,   furnishings,   carpeting,  floor
     covering, wall covering,  drapes and equipment),  and from the date of such
     casualty until the Premises are so repaired and restored,  the monthly Base
     Rent payments  hereunder shall abate in such proportion as the part of said
     Premises thus destroyed or rendered  unuseable by Tenant bears to the total
     Premises.  Provided, however, Landlord shall not be obligated to expend for
     such repair or  restoration  an amount in excess of the insurance  proceeds
     received by Landlord as a result of such damage.  Landlord's  obligation to
     rebuild is contingent upon its receipt of insurance proceeds  sufficient to
     make such repairs.  In the event any mortgagee or lender requires such sums
     to be applied to any debt, Landlord will not be deemed to have received the
     proceeds.  Notwithstanding  the above,  if the  Premises  or any portion in
     excess of *% of the Building is wholly or partially  damaged,  destroyed or
     rendered  unuseable  by Tenant  for their  accustomed  use by fire or other
     casualty  then  Landlord or Tenant shall have the right to  terminate  this
     Lease  effective  as of the date of such  casualty  by  giving to the other
     party,  within * (*) days after the  happening  of such  casualty,  written
     notice of such  termination.  If such  notice is given,  this  Lease  shall
     terminate and provided Tenant is not in default  hereunder,  Landlord shall
     promptly repay to Tenant any rent theretofore paid in advance which was not
     earned  at the date of such  casualty.  If said  notice  is not  given  and
     Landlord is required or elects to repair or restore the  Premises as herein
     provided,  then Tenant shall promptly  repair or replace its stock in trade
     fixtures, furnishings, furniture, carpeting, wall covering, floor covering,
     drapes and  equipment  to the same  condition  as they were in  immediately
     prior to the  casualty.  If the  Premises or any portion of the Project are
     damaged by fire or other  casualty  caused  directly or  indirectly  by the
     fault or negligence  of Tenant or its agents,  employees,  contractors,  or
     invitees,  the rent under  this  Lease  will not abate and Tenant  shall be
     liable to Landlord  for the cost and expense of the repair and  restoration
     of the Premises or the Project  caused thereby to the extent that such cost
     and expense is equal to or less than the  deductible  amount covered by the
     insurance proceeds described in Section 14.1.

19.  Eminent Domain.

19.1.Eminent Domain.  If any material portion of the Premises shall be acquired,
     condemned  or damaged as a result of the  exercise  of any power of eminent
     domain, condemnation or sale under threat thereof or in lieu thereof to the
     extent that the remainder becomes unuseable for its intended purpose,  then
     Landlord  or Tenant at its  election  may  terminate  this  Lease by giving
     notice to the other party of its election,  within 180 days of the date the
     condemning  authority shall have the right to possession of the Premises or
     portion of the Project condemned.  Moreover, if any material portion of the
     Project is taken and in Landlord's  judgment  such taking would  materially
     interfere  with or  impair  its  ownership  or  operation  of the  Project,
     Landlord may terminate this Lease.  If the Lease shall not be terminated as
     aforesaid,  then it shall  continue in full force and effect,  and Landlord
     shall within a reasonable time after  possession is physically taken by the
     condemning authority (subject to delays due to shortage of labor, materials
     or equipment,  labor  difficulties,  breakdown of  equipment,  governmental
     restrictions, fires, other casualties or other causes beyond the reasonable
     control of Landlord)  restore the remaining  portion of the Premises to the
     extent reasonably  possible,  to render it reasonably  suitable for the Use
     permitted by Section 1. Provided,  however, Landlord shall not be obligated
     to expend an amount greater than the proceeds  received from the condemning
     authority  less all expenses  incurred in connection  therewith  (including
     attorney's fees) for the restoration. Base Rent as provided in Section 5.1,
     shall be reduced in the  proportion  that the area of the Premises so taken
     bears to the total  Premises.  No taking of the Common  Area shall  entitle
     Tenant to an abatement of rent,  but operating  expenses  shall be adjusted
     accordingly.

19.2.Damages.  Landlord  reserves and Tenant assigns to Landlord,  all rights to
     damages on account of any taking or condemnation or sale under threat or in
     lieu thereof or any act of any public or  quasi-public  authority for which
     damages are payable. Tenant shall execute such instruments of assignment as
     Landlord  requires,  join with  Landlord in any action for the  recovery of
     damages if  requested  by  Landlord,  and turn over to Landlord any damages
     recovered  in any  proceeding.  If  Tenant  fails  to  execute  instruments
     required by Landlord, or undertakes such other steps as requested, Landlord
     shall be deemed the duly authorized  irrevocable agent and attorney-in-fact
     of Tenant to execute such instruments and undertake such steps on behalf of
     Tenant.  However,  Landlord does not reserve any damages  payable for trade
     fixtures  installed  by  Tenant  at its own cost  which are not part of the
     realty,  moving  expenses and  business  interruption  expense  incurred by
     Tenant, provided that such items are separately awarded to Tenant.

20.  Assignment  and  Subletting.  Tenant  shall not  assign  this  Lease or any
     interest therein,  whether voluntarily,  by operation of law, or otherwise,
     and shall not sublet the  Premises  or any part  thereof  except by written
     permission and consent of Landlord being first had and obtained. Consent of
     Landlord to any such  assignment  or subletting  shall not be  unreasonably
     withheld if: (i) at the time of such assignment or subletting Tenant is not
     in default in the  performance  and  observance of any of the covenants and
     conditions  of this Lease;  (ii) the  assignee or subtenant of Tenant shall
     expressly assume in writing all of Tenant's  obligations  hereunder;  (iii)
     Tenant shall provide proof to Landlord that the assignee or subtenant has a
     financial  condition  which is  satisfactory  to  Landlord  and  Landlord's
     lender;  (iv) the Premises continue to be used solely for the Use set forth
     in Section 1, and (v) Landlord is  furnished  with and approves the form of
     the proposed sublease.  In connection with any such assignment or sublease,
     Tenant or the  assignee or  subtenant  of Tenant  shall pay to Landlord any
     legal and  administrative  costs  incurred by Landlord  in  approving  such
     assignment  or  subletting,  not to  exceed  $*.  Any  such  assignment  or
     sublease, even with the approval of Landlord, shall not relieve Tenant from
     liability  for  payment  of all forms of rental  and other  charges  herein
     provided  or from  the  obligations  to keep  and be  bound  by the  terms,
     conditions  and  covenants of this Lease.  The  acceptance of rent from any
     other person shall not be deemed to be a waiver of any of the provisions of
     this Lease,  or a consent to the  assignment or subletting of the Premises.
     Consent to any  assignment or  subletting  shall not be deemed a consent to
     any future assignment or subletting. Any merger,  consolidation or transfer
     of corporate shares of Tenant, if Tenant is a corporation,  so as to result
     in a change in the  present  voting  control of the Tenant by the person or
     persons  owning a  majority  of said  corporate  shares on the date of this
     Lease,  shall  constitute an assignment and be subject to the conditions of
     this  Paragraph.  If  Tenant is a general  partnership  having  one or more
     corporations as partners or if Tenant is a limited  partnership  having one
     or more corporations as general  partners,  the provisions of the preceding
     sentence shall apply to each of such  corporations  as if such  corporation
     alone  had been the  Tenant  hereunder.  If Tenant  is a  partnership,  the
     withdrawal  of a general  partner  shall be an  assignment  subject  to the
     provisions hereof.  Moreover,  in the event that the rental due and payable
     by a sublessee or assignee,  or a combination  of the rental  payable under
     such sublease or assignment plus any bonus or other consideration  therefor
     or incident thereto exceeds the rental payable under this Lease, or if with
     respect to an  assignment,  sublease,  license or other  transfer by Tenant
     permitted by Landlord, the consideration payable to Tenant by the assignee,
     subtenant,  licensee or other  transferee  exceeds the rental payable under
     this Lease,  then Tenant shall be bound and obligated to pay  Landlord,  in
     addition to all rental required hereunder,  * (*) of such excess rental and
     other excess  consideration  within * (*) days following receipt thereof by
     Tenant from such sublessee,  assignee, licensee or other transferee, as the
     case may be.  Finally,  in the event of any  assignment or subletting it is
     understood  and agreed  that all  rentals  paid to Tenant by an assignee or
     sublessee  shall be  received  by  Tenant  in  trust  for  Landlord,  to be
     forwarded  immediately to Landlord without  reduction of any kind, and upon
     election by  Landlord  such  rentals  shall be paid  directly to  Landlord.
     Without limitation of Landlord's  approval rights as provided above, Tenant
     shall provide a copy of any executed sublease to Landlord within * (*) days
     of the execution thereof.

20.1 Notwithstanding  anything  contained in this Lease to the contrary,  Tenant
     may  without  the prior  consent of  Landlord,  but with notice to Landlord
     within * (*) days of any assignment or sublease,  assign or sublease all or
     part of the  premises,  to an affiliate  of Tenant,  or to any company into
     which Tenant may be merged or consolidated,  or that acquires substantially
     all of the assets of Tenant.  Any such assignee  shall have a similar right
     to assign this Lease to an affiliate of Tenant or to any company into which
     Tenant  may be  merged  or  consolidated,  without  the  prior  consent  of
     Landlord,  but with notice to Landlord  within * (*) days of any assignment
     or sublease.  An  "Affiliate"  of Tenant shall mean any  corporation  which
     directly or  indirectly,  controls or is  controlled  by or is under common
     control  with  Tenant,  or a  successor  corporation  to Tenant by  merger,
     consolidation,  or  non-bankruptcy  reorganization.   For  purpose  of  the
     definition of "affiliate,"  the word "control"  (including  "controlled by"
     and  under  common  control  with"),   with  respect  to  any  corporation,
     partnership  or  association,  shall  mean  the  possession,   directly  or
     indirectly, of the power to direct or cause the direction of the management
     and policy of a particular corporation, partnership or association, whether
     through the  ownership of voting  securities  or by contract or  otherwise.
     Notwithstanding  the  foregoing,  if any such affiliate has a net woth less
     than that of Tenant at the time of such proposed  assignment,  Landlord may
     require  as a  condition  to such  assignment  a  guarantee  from  Frontier
     Airlines Inc., or its successor, in a form acceptable to Landlord.

21.  Default by Tenant.

21.1.Events of Default.  The following  shall be considered  for all purposes to
     be events of default  under and a breach of this Lease:  (a) any failure of
     Tenant to pay any rent or other amount when due hereunder after  expiration
     of any applicable grace periods therefore as provided in the Lease; (b) any
     failure by Tenant to perform or observe any of the other terms, provisions,
     conditions  and  covenants  of this  Lease for more  than * (*) days  after
     written  notice of such failure or if such  performance  is of a type which
     will require more than * (*) days to correct  using  reasonable  diligence,
     Tenant  fails to  commence  such cure  within * (*) days  after  notice and
     diligently  proceed  to cure same;  (c) Tenant  shall  become  bankrupt  or
     insolvent, or file or have filed against it a petition in bankruptcy or for
     reorganization  or  arrangement  or for the  appointment  of a receiver  or
     trustee  of all or a portion  of  Tenant's  property,  or  Tenant  makes an
     assignment  for the  benefit  of  creditors;  (d) if  Tenant  abandons  the
     Premises;  (e) this Lease, Tenant's interest herein or in the Premises, any
     improvements  thereon,  or any  property  of  Tenant  is  executed  upon or
     attached;  or (f) the Premises come into the hands of any person other than
     expressly permitted under this Lease.

21.2.Landlord's Remedies.  Upon the occurrence of any event of default specified
     in this Lease,  Landlord,  without grace period, demand or notice (the same
     being  hereby  waived by Tenant),  and in  addition to all other  rights or
     remedies Landlord may have for such default, shall have the right to pursue
     any one or more of the following remedies:

     (a)  Terminate this Lease in which event Tenant shall immediately surrender
          the Premises to Landlord,  and if Tenant fails to do so, Landlord may,
          without prejudice to any other remedy which it may have for possession
          or arrearages in rent,  enter upon and take possession of the Premises
          and expel or remove  Tenant and any other  person who may be occupying
          said  Premises or any part  thereof,  by force if  necessary,  without
          notice or the need to resort to legal process and without being deemed
          guilty  of  trespass  or  becoming  liable  for  any  loss  or  damage
          occasioned thereby; and Landlord may recover from Tenant the amount of
          all loss and  damage  which  Landlord  may  suffer  by  reason of such
          termination,  including, without limitation, all costs of retaking the
          Premises and the total present value (using a discount factor of * (*)
          percent) of the total rent and charges  reserved in this Lease for the
          remainder of the Term of this Lease (i.e.,  the duration of this Lease
          had it not been  terminated) all of which shall be immediately due and
          payable by Tenant to Landlord; and/or

     (b)  Without  terminating this Lease, enter upon and take possession of the
          Premises,  and expel or remove  Tenant and any other person who may be
          occupying said Premises,  or any part thereof,  by force if necessary,
          without  notice  or the need to resort to legal  process  and  without
          being  deemed  guilty of trespass  or becoming  liable for any loss or
          damage  occasioned  thereby.  Landlord may make such  alterations  and
          repairs as it deems  advisable  to relet the  Premises,  and relet the
          Premises or any part  thereof for such term or terms (which may extend
          beyond the Term of this Lease) and at such rentals and upon such other
          terms  and  conditions  as  Landlord  in  its  sole  discretion  deems
          advisable.  Upon each such reletting all rentals  received by Landlord
          therefrom shall be applied: first, to any indebtedness other than rent
          due hereunder  from Tenant to Landlord;  second,  to pay any costs and
          expenses of  reletting,  including  brokers' and  attorneys'  fees and
          costs of alterations and repairs;  third,  to rent due hereunder;  and
          fourth, the residue,  if any, shall be held by Landlord and applied in
          payment of future rent as it becomes due hereunder.  No such reletting
          shall  relieve  Tenant  or  any  guarantors  from  their   obligations
          hereunder.  If rentals  received from such reletting  during any month
          are less than that to be paid during  that month by Tenant  hereunder,
          Tenant shall  immediately pay any such  deficiency to Landlord.  In no
          event  shall  Tenant  be  entitled  to any  excess  rent  obtained  by
          reletting the Premises over and above the rent reserved herein.

     No  re-entry or taking  possession  of the  Premises  by Landlord  shall be
construed as an election to terminate this Lease unless a written notice of such
termination is given by Landlord to Tenant.  Notwithstanding  any such reletting
or re-entry or taking possession, without termination,  Landlord may at any time
thereafter terminate this Lease for any prior breach or default.  Pursuit of any
of the  foregoing  remedies  shall  not  preclude  pursuit  of any of the  other
remedies herein provided or any other remedies  provided by at law or in equity,
nor shall  pursuit of any remedy  herein  provided  constitute a  forfeiture  or
waiver of any rent due to  Landlord  hereunder  or of any  damages  accruing  to
Landlord.  Notwithstanding anything herein to the contrary,  Landlord shall have
no obligation  to relet or attempt to relet the Premises or any portion  thereof
following  termination of this Lease,  re-entry or repossession of the Premises.
Provided,  however,  in the  event  Landlord  is ever  held to have such a duty,
Tenant  agrees that Landlord  shall,  in  connection  with such efforts,  not be
required to do anything  more than list the  Premises  for lease with a licensed
real  estate  broker  of  Landlord's  choosing  (which  may be an  affiliate  of
Landlord)  for a period of * (*)  months.  If no party  acceptable  to  Landlord
executes a lease with Landlord on terms reasonably acceptable to Landlord within
this * (*) month period,  Tenant agrees that Landlord  shall  conclusively  have
satisfied  any such duty to release or mitigate.  In no event will Landlord have
any duty to lease the Premises  before  Landlord leases other vacant space which
it has in the Project or other  buildings  owned by Landlord nor shall  Landlord
have any  duty to lease to and  Landlord  will not be  considered  to be  acting
unreasonably  in refusing to lease to any party if: (i) the  prospective  lessee
has a financial  condition  which is  unacceptable  to  Landlord  or  Landlord's
lenders;  (ii)  the  prospective  lessee  requires  any  alterations  which  are
unacceptable to the Landlord or Landlord's lenders; (iii) the prospective lessee
requires  tenant  improvements  to be paid by Landlord;  or (iv) the prospective
lessee  requires  terms  different  from  this  Lease  or  which  are  otherwise
unacceptable to Landlord or Landlord's lender.

21.3.Lockout  Provisions.  Upon the  occurrence  of an uncured  event of default
     under the  Lease,  Landlord  shall be  entitled  to change the locks at the
     Premises after three (3) days prior written notice to Tenant. Tenant agrees
     that entry may be gained for that  purpose  through use of a  duplicate  or
     master  key or any  other  means,  that  same may be  conducted  out of the
     presence of Tenant if Landlord so elects,  that no notice shall be required
     to be posted at the time of such entry by the  Landlord  on any door to the
     Premises (or elsewhere)  disclosing the reason for such action or any other
     information,  and that Landlord  shall not be obligated to provide a key to
     the changed  lock to Tenant  unless  Tenant  shall have first:  (a) brought
     current all payments due to Landlord under this Lease;  provided,  however,
     that if Landlord has theretofore  formally and permanently  repossessed the
     Premises,  or has  terminated  this Lease,  then Landlord shall be under no
     obligation  to  provide a key to the new  lock(s) to Tenant  regardless  of
     Tenant's payment of past-due rent or other past-due  amounts,  damages,  or
     any other  payment or amounts of any nature or kind  whatsoever;  (b) fully
     cured and remedied to Landlord's  satisfaction all other defaults of Tenant
     under this Lease (but if such  defaults  are not  subject to cure,  such as
     early abandonment of the Premises,  then Landlord shall not be obligated to
     provide  the new key to  Tenant  under  any  circumstances);  and (c) given
     Landlord  security  and  assurances  satisfactory  to Landlord  that Tenant
     intends to and is able to meet and comply with its future obligations under
     this Lease, both monetary and nonmonetary.

21.4.Landlord's  Performance for Account of Tenant. If the Tenant shall continue
     in default in the performance of any of the covenants or agreements  herein
     contained  after the time limit for the curing  thereof  then  Landlord may
     perform the same for the  account of Tenant.  Any amount paid or expense or
     liability (together with interest thereon at the Maximum Rate from the date
     upon which any such expense shall have been incurred)  incurred by Landlord
     in the  performance  of any such matter for the account of Tenant  shall be
     deemed to be additional  rent and the same (together with interest  thereon
     at the Maximum  Rate from the date upon which any such  expense  shall have
     been  incurred)  may, at the option of Landlord,  be added to any rent then
     due or  thereafter  falling due  hereunder or shall be payable by Tenant to
     Landlord on demand.

21.5.Application  of Payments  Received  From  Tenant.  Landlord  shall have the
     right to apply any payments made by Tenant to the  satisfaction of any debt
     or obligation of Tenant to Landlord according to Landlord's sole discretion
     and regardless of the  instructions of Tenant as to application of any such
     sum,  whether  such   instructions  be  endorsed  upon  Tenant's  check  or
     otherwise,  unless  otherwise  agreed upon by both parties in writing.  The
     acceptance  by  Landlord  of a check or checks  drawn by a party other than
     Tenant shall not affect Tenant's liability hereunder nor shall it be deemed
     an approval of any assignment or sublease of this Lease by Tenant.

21.6.Waiver of Rights of  Redemption.  To the extent  permitted  by law,  Tenant
     waives any and all rights of redemption  granted by or under any present or
     future  laws if Tenant is evicted  or  dispossessed  for any  cause,  or if
     Landlord  obtains  possession  of  the  Premises  due to  Tenant's  default
     hereunder or otherwise.

21.7.No Waiver.  No delay or omission in the  exercise of any right or remedy of
     Landlord on any default by Tenant shall impair such a right or remedy or be
     construed as a waiver. The receipt and acceptance by Landlord of delinquent
     rent  shall  not  constitute  a  waiver  of any  other  default;  it  shall
     constitute  only a waiver of timely payment for the particular rent payment
     involved. No act or conduct of Landlord, including, without limitation, the
     acceptance of the keys to the Premises,  shall  constitute an acceptance of
     the surrender of the Premises by Tenant before the  expiration of the term.
     Only a notice from  Landlord to Tenant shall  constitute  acceptance of the
     surrender  of the  Premises  and  accomplish  a  termination  of the Lease.
     Landlord's consent to or approval of any act by Tenant requiring Landlord's
     consent  or  approval  shall not be  deemed to waive or render  unnecessary
     Landlord's  consent to or approval  of any  subsequent  act by Tenant.  Any
     waiver by  Landlord  or any  default  must be in writing and shall not be a
     waiver of any other default  concerning the same or any other  provision of
     the Lease.

22.  Landlord's Lien. Intentionally omitted.

23.  Default by Landlord.  Except in the event of emergency  repairs required to
     be made by the  Landlord to the  Premises,  which will be  commenced at the
     earliest reasonable  opportunity by Landlord after receipt of notice of the
     need  therefore,  Landlord shall in no event be charged with default in any
     of its obligations hereunder unless and until Landlord shall have failed to
     perform such  obligations  within * (*) days (or such additional time as is
     reasonably  required to correct any such default)  after written  notice to
     Landlord by Tenant,  specifically  describing such failure. All obligations
     of Landlord hereunder shall be construed as covenants, not conditions; and,
     except as may be otherwise expressly provided in this Lease, Tenant may not
     terminate this Lease for breach of Landlord's  obligations  hereunder.  All
     obligations  of  Landlord  under  this Lease  will be deemed  binding  upon
     Landlord  only  during the period of its  ownership  of the Project and not
     thereafter.  The term  "Landlord"  in this Lease shall mean only the owner,
     for the time being of the Project, and in the event of the transfer by such
     owner of its  interest  in the  Project,  such  owner  shall  thereupon  be
     released  and  discharged  from  all  obligations  of  Landlord  thereafter
     accruing,  but such obligations shall be binding during the Lease Term upon
     each new owner for the duration of such owner's ownership. Any liability of
     Landlord  under this Lease shall be limited  solely to its  interest in the
     Project,  and in no event shall any personal  liability be asserted against
     Landlord in connection with this Lease nor shall any recourse be had to any
     other property or assets of Landlord.

24.  Application of Payments Received From Tenant. Landlord shall have the right
     to apply any  payments  made by Tenant to the  satisfaction  of any debt or
     obligation of Tenant to Landlord  according to Landlord's  sole  discretion
     and regardless of the  instructions of Tenant as to application of any such
     sum,  whether  such   instructions  be  endorsed  upon  Tenant's  check  or
     otherwise,  unless  otherwise  agreed upon by both parties in writing.  The
     acceptance  by  Landlord  of a check or checks  drawn by a party other than
     Tenant shall not affect Tenant's liability hereunder nor shall it be deemed
     an approval of any assignment or sublease of this Lease by Tenant.

25.  Notices.  All notices  required to be given  hereunder shall be in writing,
     and shall be served in  person  upon the party to be  notified  or upon its
     agent, or shall be mailed by certified or registered mail or deposited with
     a  nationally  recognized  overnight  carrier,   postage  prepaid,  to  the
     appropriate address shown on the signature page of this Lease. Either party
     shall have the right to change its  address  for  notice by  notifying  the
     other party of such change in accordance with this paragraph.  Notice shall
     be  deemed  given * (*) days  after  deposit  in the  U.S.  Mail or sent as
     otherwise  provided in the manner provided herein.  Either party shall have
     the right to change its address for notice by notifying  the other party of
     such change in accordance with this Paragraph.

26.  Sale of  Project  or Land by  Landlord.  In the  event  of any  sale of the
     Project or Land by Landlord, or any part thereof,  Landlord shall be and is
     hereby  entirely  freed and relieved of all liability  under any and all of
     its  covenants  and  obligations  contained  in or derived  from this Lease
     arising  out of  any  act,  occurrence  or  omission  occurring  after  the
     consummation  of  such  sale;  and  the  purchaser,  at  such  sale  or any
     subsequent sale of the Project or Land shall be deemed, without any further
     agreement  between the parties or their  successors  in interest or between
     the parties and any such purchaser, to have assumed and agreed to carry out
     any and all of the covenants  and  obligations  of the Landlord  under this
     Lease. Furthermore, in the event of a sale or conveyance by Landlord of the
     Project or Land,  this Lease shall not be  affected  by any such sale,  and
     Tenant agrees to attorn to the purchaser thereof.

27.  Surrender, Holding Over and Successors.

27.1.Surrender.  Upon the  expiration  or  earlier  termination  of this  Lease,
     whether by forfeiture, lapse of time, or otherwise, or upon the termination
     of  Tenant's  right to  possession  of the  Premises,  Tenant  will at once
     surrender and deliver up the Premises,  to Landlord in good and broom-clean
     condition  and repair,  reasonable  wear and tear and loss by fire or other
     casualty excepted.  All Tenant Additions will,  following the expiration or
     termination  of this Lease,  remain in the Premises as Landlord's  property
     unless  Landlord  directs  Tenant to remove  all or any  portion of same in
     writing at the time Landlord approves the plans and specifications relating
     to such Tenant  Additions,  provided  however,  that  Tenant  must  request
     Landlord's  determination,  whether  said  improvements  will remain in the
     Premises or be required  to be  removed,  at the time Tenant is  requesting
     approval of the plans and  specifications,  whereupon Tenant agrees that it
     shall,  at its expense,  remove such Tenant  Additions (or portion  thereof
     directed by Landlord).  Provided  Tenant is not in default,  it will remove
     its  Trade  Fixtures,  inventory,  and  other  personal  property  upon the
     expiration  of the Term.  . Tenant  shall repair any damage to the Premises
     caused by the removal of such Tenant  Additions,  Trade Fixtures,  or other
     items. In no event will any fire sprinklers,  fire  suppression  equipment,
     HVAC System components,  floor tiles,  carpeting,  ceiling tiles,  plumbing
     fixtures,  or similar  building  system items or any  equipment or fixtures
     attached to the realty be considered  "Trade Fixtures" or be removed unless
     directed by Landlord to do so.  Tenant  agrees that  following  an Event of
     Default,  Landlord  may,  at its option,  allow any party  claiming to be a
     lessor of Tenant or a holder of a security  interest in such trade fixtures
     or equipment to remove equipment,  Trade Fixtures, and similar items leased
     from such lessor.  Landlord  shall have no  liability  to Tenant  therefor.
     Landlord  may  condition  its  consent  upon  such  lessor or a holder of a
     security  interest in such trade  fixtures or equipment  agreeing to repair
     any damage to the Premises  caused by such removal and  providing  adequate
     financial assurances of its ability to pay for any such damages.  Provided,
     however,  no such  agreement by any such lessor,  or Landlord's  failure to
     obtain such an agreement, shall relieve Tenant of its obligations hereunder
     including  without  limitation,  Tenant's  obligation to repair said damage
     even if the damage is caused by said lessor or its  contractors  or agents.
     Tenant shall remove all Hazardous  Materials.  Any Trade Fixtures or Tenant
     Additions  not  removed  by  Tenant  as  required  herein  shall be  deemed
     abandoned  and may be  stored,  removed  and  disposed  of by  Landlord  at
     Tenant's  expense,  and Tenant waives all claims  against  Landlord for any
     damages resulting from Landlord's  retention or disposal of same. Moreover,
     any period  following  the  termination  or expiration of this Lease during
     which there is Hazardous  Material,  Tenant  Alterations  or Trade Fixtures
     which are not removed as herein  required shall be considered a holdover by
     Tenant  and,  in  addition  to all other  remedies  available  to  Landlord
     hereunder,  shall obligate Tenant to the increased rental payments pursuant
     to Section  27.2.  Tenant shall be entitled to no payment or offset for the
     value of any such  property  (even if sold by  Landlord)  and  shall pay on
     demand all costs  incurred by Landlord in  connection  with such removal or
     disposal. No retention, disposal or sale of such items shall limit remedies
     otherwise  available  to  Landlord  hereunder  for a breach by Tenant.  All
     obligations of Tenant hereunder not full performed as of the termination or
     expiration of the Lease shall survive such termination or expiration.

27.2.Holding  Over.  If Tenant holds over or occupies  the  Premises  beyond the
     Term of this Lease (it being  agreed there shall be no such holding over or
     occupancy without  Landlord's  written consent),  Tenant shall pay Landlord
     for  each  day  of  such  holding  over a sum  equal  to * the  daily  rent
     applicable  hereunder at the  expiration of the Term  (including  Operating
     Expenses),  prorated for the number of days of such holding  over.  In such
     event, Tenant shall occupy the Premises as a Tenant at sufferance,  and all
     of the terms and  provisions  of this Lease shall be  applicable,  with the
     exception of the rent  applicable  during such  holding over period,  which
     shall be increased as aforesaid.  Tenant agrees that Landlord may institute
     a forcible  detainer or similar action against Tenant or any other party in
     possession  of the  Premises  without  serving  any demand for  possession,
     demand to vacate,  notice of  termination  or similar demand or notice upon
     Tenant or such party in possession.

27.3.Successors.  All rights and  liabilities  herein  given or imposed upon the
     respective  parties  hereto shall bind and inure to the several  respective
     heirs, successors, administrators, executors and assigns of the parties and
     if  Tenant  is more  than one  person,  they  shall be  bound  jointly  and
     severally by this Lease. No rights,  however, shall inure to the benefit of
     any  assignee of Tenant  unless the  assignment  is approved by Landlord as
     required herein.

28.  Brokers or Finders. Tenant represents and warrants to Landlord, that it has
     engaged no broker or finder  other  than the Broker  listed in Section 1 of
     this Lease and that no claims for  brokerage  commissions  or finders' fees
     will arise in  connection  with the  execution  of this Lease and agrees to
     indemnify,  defend and hold Landlord harmless from any liability or expense
     (including attorney's fees) arising from any such claim. Landlord agrees to
     pay Broker a commission  upon Tenant  accepting  occupancy  and  commencing
     payment of Base Rent hereunder as provided in a separate  agreement between
     Landlord and said Broker.

29.  Environmental Issues.

29.1.Tenants  Compliance  with  Environmental  Laws.  Tenant  shall not cause or
     permit any Hazardous  Material to be brought upon, kept or used in or about
     the  Premises by Tenant,  its agents,  employees,  contractors  or invitees
     without the prior written  consent of Landlord,  which  Landlord  shall not
     unreasonably   withhold   provided   Tenant   demonstrates   to  Landlord's
     satisfaction  that  such  Hazardous  Material  is  necessary  or  useful to
     Tenant's business. All Hazardous Materials will be used, kept and stored in
     a manner that complies with all laws regulating any such Hazardous Material
     so brought upon or used or kept in or about the Premises.

29.2.Indemnification.  In  addition  to, and without  limitation  on the general
     indemnity  obligations  of Tenant  under this  Lease,  Tenant  specifically
     agrees that it shall indemnify,  defend and hold Landlord harmless from any
     and all claims, judgments, damages, penalties, fines, costs, liabilities or
     losses (including, without limitation,  diminution in value of the Premises
     or the Project,  damages for the loss or  restriction on use of rentable or
     usable space or of any amenity of the Premises, and sums paid in settlement
     of claims,  attorneys'  fees,  consultant fees and expert fees) which arise
     during or after the Lease  Term as a result of any  breach by Tenant of its
     obligations  under this  Paragraph  or any  contamination  of the  Premises
     resulting from the presence of Hazardous Materials on or about the Premises
     caused or permitted by Tenant.  This  indemnification of Landlord by Tenant
     includes,  without  limitation,  costs  incurred  in  connection  with  any
     investigation  of site  conditions  or any clean-up,  remedial,  removal or
     restoration  work  required  by any  federal,  state or local  governmental
     agency or political  subdivision  because of Hazardous  Material present in
     the soil or ground  water on or under the  Premises.  Without  limiting the
     foregoing, if the presence of any Hazardous Material on the Premises caused
     or permitted by Tenant results in any contamination of the Premises, Tenant
     shall  promptly  take all actions at its sole  expense as are  necessary to
     return the Premises to the condition  existing prior to the introduction of
     any such  Hazardous  Material to the  Premises,  provided  that  Landlord's
     approval of such actions shall first be obtained.  Tenant further agrees to
     defend Landlord, its agents,  employees,  and assigns in any administrative
     or judicial  proceeding  commenced by private  individuals or  governmental
     entities  seeking  recovery  of damages  for  personal  injury or  property
     damage,  or recovery of civil penalties or fines arising out of,  connected
     with,  or  relating to any breach by Tenant of its  obligations  under this
     Paragraph or any contamination of the Premises  resulting from the presence
     of  Hazardous  Materials  on or about the  Premises  caused or permitted by
     Tenant.  The foregoing  indemnity  shall survive the  expiration or earlier
     termination of this Lease.

29.3.Hazardous  Material.  As used herein,  the term "Hazardous  Material" means
     any  pollutant,  toxic  substance,  hazardous  waste,  hazardous  material,
     hazardous substance,  oil hydrocarbon,  asbestos or similar item as defined
     in or pursuant to the Resource  Conservation  and Recovery Act, as amended,
     the Comprehensive Environmental Response,  Compensation, and Liability Act,
     as amended,  the Federal  Clean  Water Act, as amended,  the Safe  Drinking
     Water Act, as amended, the Federal Water Pollution Control Act, as amended,
     or any other  federal,  state or local  environmental  or heath and  safety
     related law, regulation,  ordinance, rule, or bylaw, whether existing as of
     the date hereof,  previously enforced or subsequently enacted (collectively
     the "Environmental Laws").

29.4.Notice of Certain  Events.  Tenant  shall  immediately  advise  Landlord in
     writing  of (a)  any  governmental  or  regulatory  actions  instituted  or
     threatened  under  any  Environmental  Law  affecting  the  Tenant  or  the
     Premises,  (b) all claims made or  threatened  by any third  party  against
     Tenant or the Premises  relating to damage,  contribution,  cost  recovery,
     compensation,  loss or injury resulting from any Hazardous  Materials,  (c)
     the discovery of any occurrence or condition on any real property adjoining
     or in the  vicinity of the  Premises  that could cause the  Premises or the
     Project  or Land to be  classified  in a manner  which may  support a claim
     under any  Environmental  Law, and (d) the  discovery of any  occurrence or
     condition  on the  Premises,  the  Project  or  Land or any  real  property
     adjoining  or in the  vicinity of the  Premises,  the Project or Land which
     could subject Tenant, the Premises, the Project or Land to any restrictions
     in  ownership,  occupancy,  transferability  or use of  the  Premises,  the
     Project or the Land under any Environmental Law. Landlord may elect to join
     and participate in any settlements,  remedial actions, legal proceedings or
     other  actions   initiated  in   connection   with  any  claims  under  any
     Environmental  Law  caused or alleged  to have been  caused by  Tenant,  it
     agents,  employees,  contractors  or  invitees  and to have its  reasonable
     attorney's fees paid by Tenant. At its sole cost and expense, Tenant agrees
     when applicable or upon request of Landlord to promptly and completely cure
     and remedy every violation of an  Environmental  Law caused by Tenant,  its
     agents, employees, contractors or invitees.

29.5.Environmental  Review.  In the  event  reasonable  evidence  exists  of the
     occurrence  or existence of the violation of any  Environmental  Law or the
     presence  of any  Hazardous  Material on the  Premises,  the Project or the
     Land, caused by Tenant, its agents,  employees,  contractors,  or invitees,
     Landlord (by its officers,  employees and agents) at any time and from time
     to time may contract for the services of persons (the "Site  Reviewers") to
     perform   environmental  site  assessments  ("Site   Assessments")  on  the
     Premises,  the Project,  Land or neighboring  properties for the purpose of
     determining  whether  there exists on the  Premises,  the Project,  Land or
     neighboring  properties any environmental  condition which could reasonably
     be expected to result in any  liability,  cost or expense to Landlord.  The
     Site  Reviewers  are  hereby  authorized  to enter  upon the  Premises  for
     purposes of conducting  Site  Assessments.  The Site  Reviewers are further
     authorized  to  perform  both  above  and  below  the  ground  testing  for
     environmental  damage or the presence of Hazardous Materials and such other
     tests on the Premises,  the Project, Land or neighboring  properties as may
     be necessary to conduct the Site  Assessments in the reasonable  opinion of
     the Site  Reviewers.  Tenant  agrees to supply to the Site  Reviewers  such
     historical  and  operational  information  regarding the Premises as may be
     reasonably   requested  by  the  Site  Reviewers  to  facilitate  the  Site
     Assessments  and will make  available for meetings with the Site  Reviewers
     appropriate personnel having knowledge of such matters. The results of Site
     Assessments  shall  be  furnished  to  Tenant  upon  request.  The  cost of
     performing such Site Assessments shall be paid by Tenant.

30.  Miscellaneous.

30.1.Partial Invalidity.  If any term, covenant,  condition or provision of this
     Lease is held by a court of competent  jurisdiction to be invalid,  void or
     unenforceable,  the remainder of the provisions hereof shall remain in full
     force and effect and shall in no way be affected,  impaired or  invalidated
     thereby.

30.2.Captions.  The various  headings and numbers herein and the grouping of the
     provisions of this Lease into Paragraphs are for the purpose of convenience
     only and shall not be considered a part hereof unless  expressly  stated to
     the contrary.

30.3.Gender;  Number.  Words of any gender  used in this Lease shall be held and
     construed to include any other  gender,  and words in the  singular  number
     shall be held to include  the plural,  and vice  versa,  unless the context
     otherwise requires.

30.4.Applicable  Law.  This Lease  shall be governed by the laws of the State of
     New Mexico.

30.5.Corporation as Tenant.  If a corporation  executes this Lease as Tenant, it
     shall promptly furnish  Landlord with certified  corporate  resolutions,  a
     secretary's certificate or other evidence reasonably acceptable to Landlord
     attesting to the authority of the officers  executing  this Lease on behalf
     of such corporation.

30.6.Time. Time is of the essence of this Lease.

30.7.Joint and Several  Liability.  If Tenant is a partnership or other business
     organization,  the members of which are subject to personal liability,  the
     liability of each such member shall be deemed to be joint and several.

30.8.Accord and Satisfaction.  Landlord is entitled to accept,  receive and cash
     or deposit any  payment  made by Tenant for any reason or purpose or in any
     amount  whatsoever,  and  apply  the  same  at  Landlord's  option  to  any
     obligation  of Tenant  and the same  shall not  constitute  payment  of any
     amount  owed  except  that to which  Landlord  has  applied  the  same.  No
     endorsement  or  statement on any check or letter of Tenant shall be deemed
     an  accord  and  satisfaction  or  otherwise  recognized  for  any  purpose
     whatsoever.  The  acceptance  of any such check or payment shall be without
     prejudice to Landlord's right to recover any and all amounts owed by Tenant
     hereunder and the Landlord's right to pursue any other available remedy.

30.9.Entire  Agreement.  There are no  representations,  covenants,  warranties,
     promises,  agreements,  conditions or undertaking, oral or written, between
     Landlord  and Tenant  other than  herein  set  forth.  Except as  otherwise
     provided herein, no subsequent alteration, amendment, change or addition to
     this Lease shall be binding upon  Landlord or Tenant  unless in writing and
     signed by them.  The normal  rule of  construction  to the effect  that any
     ambiguities  are to be  resolved  against the  drafting  party shall not be
     employed in the  interpretation  of the Lease or any  exhibits or addendums
     hereto.

30.10No Partnership.  Landlord does not, in any way or for any   purpose, become
     a partner, employer,  principal, master, agent or joint venturer of or with
     Tenant.

30.11. Force Majeure.  If either party hereto shall be delayed or hindered in or
     prevented from the  performance of any act required  hereunder by reason of
     acts  of God,  unavoidable  casualties,  the  elements,  inclement  weather
     preventing work, strikes,  lockouts,  labor troubles,  inability to procure
     material,  failure of power,  restrictive governmental laws or regulations,
     riots, insurrection, war or other reason of a like nature, not the fault of
     the party  delayed in  performing  work or doing acts  required  under this
     Lease, the period for the performance of any such act shall be extended for
     a period  equivalent  to the  period  of such  delay.  Tenant  shall not be
     excused  from  any  obligations  for  payment  of  rent,  percentage  rent,
     additional  rent or any other payments  required by the terms of this Lease
     when same are due,  and all such  amounts  shall be paid  when due,  unless
     otherwise expressly set forth herein.

30.12. Attorney's  Fees and Waiver of Jury Trial. In the event of any litigation
     regarding this Lease,  the losing party shall pay to the  prevailing  party
     reasonable  attorney's fees.  Without  limitation on the foregoing,  Tenant
     agrees  that  should  Landlord  ever file a forcible  detainer  action or a
     forcible  entry and  detainer  action,  Landlord  shall be  entitled to its
     reasonable attorney's fees and costs in such action, and Landlord shall not
     be required to give Tenant  written notice to vacate or any other notice in
     order to  recover  such  attorney's  fees and  costs.  Landlord  and Tenant
     acknowledge the delay, expense and uncertainty associated with a jury trial
     involving a complex  commercial lease of this nature, and in recognition of
     these inherent problems hereby waive their rights to a jury trial and agree
     that any litigation regarding this Lease will be tried without a jury.

30.13. Limitation of Liability.  To the extent Section 56-7-1 N.M.S.A.  1978 may
     be applicable to this Lease, any indemnity agreement contained herein shall
     not extend to liability,  claims,  damages,  losses or expenses,  including
     attorney's fees, arising out of:

     (a)  the  preparation  or approval of maps,  drawings,  opinions,  reports,
          surveys,  change orders,  designs or specifications by the indemnitee;
          or

     (b)  the giving or the failure to give  directions or  instructions  by the
          indemnitee,  or the agents or employees of the indemnitee,  where such
          giving or failure to give  directions or  instructions  is the primary
          cause of bodily injury to persons or damage to property.

30.14.  Exhibits.  The  following  Exhibits  are  attached to this Lease and are
     incorporated herein by reference:

Exhibit A    =   Premises/Site Plan
Exhibit B    =   Additional Parking Area
Exhibit C    =   Sign Criteria
Exhibit D    =   Certification of Tenant's Insurance
Exhibit E1   =   Overall Floor Plan of the Building
Exhibit E2   =   Clarifications to the Approved Building Plan Set
Exhibit E3   =   List of the Approved Building Plan Set

31.  Construction  of  Improvements.   Landlord  agrees  to  construct   certain
     improvements to the Premises as herein provided.  Attached to this Lease is
     the Overall Floor Plan of the Building  (Exhibit "E1"), the  Clarifications
     to the Approved  Building Plan Set (Exhibit  "E2") and List of the Approved
     Building Plan Set (Exhibit  "E3") which  consists of Sheet A1.1 prepared by
     Alvidrez  and  Associates  dated  April 13,  2000 and  sheets  MP-1 and E-1
     through E-3 dated April 10,  2000 and  demolition  plans MP-1 and E-1 dated
     April 1988 (reflecting  demolition  only) prepared by Mustang  Mechanical &
     Electrical  and have been  approved  by  Tenant,  all of which  are  herein
     collectively  referred to as the "Approved  Landlord's Work Plans." As soon
     as practical after execution of this Lease,  the Landlord,  at its cost and
     expense,  agrees to undertake  construction  of  improvements in and to the
     Premises in accordance  with the Approved  Landlord's  Work Plans  attached
     hereto  (the  "Landlord's  Work")  and to  complete  the same in a good and
     workmanlike  manner in compliance  with all applicable laws in place at the
     time of issuance of the building permit and in substantial  accordance with
     such  Approved   Landlord's   Work  Plans,   free  of  any  mechanic's  and
     materialman's liens relating to Landlord's Work which could impair Tenant's
     right to possession.  In no event will Landlord's Work include,  and Tenant
     will be responsible  for: (i) any items  designed on the Approved  Landlord
     Work Plans as  "Tenant's  Work" or "to be  provided  by Tenant" or words to
     that effect or (ii)  without  limitation,  any of the  following:  security
     system, fire extinguishers,  generators,  computers, fixtures, furnishings,
     furniture, vending machines, telephone systems and related wiring, computer
     cabling and wiring.

31.1.Tenant's  Work.   Following  Landlord's   Substantial   Completion  of  the
     Landlord's  Work,  Tenant,  at its cost and  expense,  agrees to  undertake
     construction  of improvements in and to the Leased Premises as set forth in
     the Approved  Tenant Plans (as defined below) (herein the "Tenant's  Work")
     to complete the same in a good and  workmanlike  manner in compliance  with
     Approved Tenant Plans and all applicable  regulations of Federal, State and
     local governmental  bodies. Prior to commencement of the Tenant's Work, the
     Tenant  will  deliver  to the  Landlord  plans and  specifications  for the
     Tenant's  Work.  The  Landlord  will have the right to promptly  approve or
     disapprove  the  same by  written  notice  to the  Tenant,  specifying  the
     corrective  action required in the case of any  disapproval.  Landlord will
     not  unreasonably  withhold,  condition  or delay its consent to such plans
     provided they do not create a Design  Problem.  If Landlord  disapproves of
     any such  items,  Tenant  will  revise  the  plans and  specifications  and
     resubmit to Landlord and this process will be repeated  until the plans and
     specifications for the Tenant's Work are approved by Landlord and Tenant at
     which point such plans will be referred to as the "Approved  Tenant Plans."
     As used herein a "Design  Problem" shall mean: (i) an adverse effect on the
     structural integrity of the Building;  (ii) possible damage to the building
     systems;  and (iii)  noncompliance  with applicable codes,  rules, laws and
     regulations.  No approval by Landlord of the Plans and  specifications  for
     Tenant's  Work shall  relieve  Tenant of its  obligations  hereunder  or be
     deemed a warranty by Landlord with respect thereto.

31.2.Completion of Landlord's  Work.  Landlord  agrees that the Landlord's  Work
     will,  subject to Tenant Delays as described below and Force Majeure Events
     as described in Section  30.11,  be  substantially  completed in accordance
     with  Approved  Landlord's  Work Plans on or before June 23, 2000  ("Target
     Completion   Date").   As  used  herein,   "Substantially   Complete"   and
     "Substantial  Completion"  shall mean  completion of Landlord's Work to the
     point where in the reasonable opinion of Landlord's architect,  the work is
     complete in accordance with the Approved Landlord's Work Plans to the point
     where Tenant may commence Tenant's Work except for punchlist items which do
     not materially  interfere with or prevent  Tenant's Work,  which  punchlist
     items shall be promptly and  diligently  completed  by  Landlord.  Tenant's
     contractor  (and its various  subcontractors)  may enter upon the  Premises
     prior to the June 23,  2000  provided  that they work in  harmony  with the
     Landlord's contractor and do not cause the Landlord's contractor any delays
     or interfere  with  necessary  inspections.  During any such entry prior to
     June 23, 2000, Tenant shall maintain insurance in amounts not less than and
     of the type  required of Tenant as  specified  in section 14 of this Lease,
     such  insurance  shall name Landlord as an additional  insured.  . Tenant's
     acceptance of occupancy from Landlord shall  constitute  acknowledgment  by
     Tenant that the Premises are then in the condition  called for in the Lease
     and that Landlord has satisfactorily completed Landlord's work hereunder.

     As used  herein,  "Tenant  Delay" shall mean any delay in  Landlord's  Work
caused by Tenant or its  contractors,  agents or  employees,  including  without
limitation:  (i) any failure to respond to items submitted for Tenant's approval
within the time limit specified by Landlord or, if no time limits are specified,
within * (*)  business  days;  (ii) any  changes to  Landlord's  Work  caused by
Tenant's  design of the Tenant's Work; or (iii) any failure of Tenant to pay any
amounts due hereunder when due or to otherwise  perform as herein required.  The
Target Completion Date and Outside  Completion Date will be extended one (1) day
for each day or partial day of Tenant Delay or Force Majeure Event.

31.3.Failure to  Complete.  Landlord  shall not be liable in damages  and Tenant
     may not  terminate  this Lease or pursue any remedies  against  Landlord if
     Landlord  fails to achieve  Substantial  Completion on or before the Target
     Completion  Date.  If,  however,  Landlord  fails  to  achieve  Substantial
     Completion  of  Landlord's  Work for any reason  other than Tenant Delay or
     delay caused by Force Majeure  Event on or before * (*) days  following the
     issuance  of a  building  permit  for the  Premises  (herein  the  "Outside
     Completion  Date"),  then Tenant may, as its sole and exclusive  remedy for
     such  delay,  delay the Rent  Commencement  Date for * (*) day for each day
     after the  Outside  Completion  Date  that  Substantial  Completion  is not
     achieved.  If the failure to complete is caused by Tenant Delay,  Base Rent
     and other sums shall  commence not later than June 15, 2000,  regardless of
     whether the Landlord's Work is Substantially Complete.

31.4.Substitutions  and Change  Orders.  Tenant  agrees  that when the  Approved
     Landlord's  Work  Plans  designate  a  particular  brand  of  materials  or
     equipment, Landlord may substitute a different brand of substantially equal
     quality  (as  determined  by  Landlord's  architect)  as  availability  may
     dictate.  Tenant  will have no right to  require  changes  to the  Approved
     Landlord's Work Plans without  Landlord's  consent,  which consent Landlord
     may  withhold  pending  (i)  Tenant's  payment  for  any  costs  associated
     therewith and (ii) Tenant's  agreement for an extension of time to complete
     Landlord's  Work. In no event will Landlord be obligated to reduce the Base
     Rent because of any savings achieved by a change.

32.  Renewal Option.

     (a)  Provided that as of the time of the giving of the Extension Notice and
          on the  Commencement  Date of the  Renewal  Term,  no event of default
          exists then Tenant shall have the right to extend the Lease Term for *
          (*)  additional  term  of *  (*)  years  (hereinafter"Renewal  Term"),
          commencing on the day following the  expiration of the Initial Term as
          applicable  (hereinafter  referred to as the "Commencement Date of the
          Renewal Term").  Tenant shall give Landlord notice (hereinafter called
          the "Extension  Notice") of its election to extend the Term at least *
          (*) months prior to the scheduled  expiration  date of the  applicable
          Term.

     (b)  Base Rent during the Renewal  Term will be the greater of (i) * (*) of
          the then Market Rental Rate for  comparable  space,  improvements  and
          parking as determined  pursuant to Section 32(d) or (ii) $* per square
          foot.

     (c)  Except for the Base Rent as determined  above,  Tenant's  occupancy of
          the  Premises  during the Renewal  Term shall be on the same terms and
          conditions as are in effect immediately prior to the expiration of the
          expiring Term, provided,  however,  Tenant shall have no further right
          to any  allowances,  credits or  abatements  relating  to  inducements
          regarding  the Initial Term and the Right of First  Refusal  shall not
          apply. If Tenant does not give the Extension  Notice within the period
          set forth in  Section  (a) above,  Tenant's  right to extend the Lease
          Term shall automatically  terminate.  Time is of the essence as to the
          giving of the Extension  Notice.  Landlord shall have no obligation to
          refurbish or otherwise  improve the Premises for the Renewal Term. The
          Premises  shall be  tendered on the  Commencement  Date of the Renewal
          Term in "AS IS"  condition.  If the Lease is extended  for the Renewal
          Term,  then  Landlord  shall  prepare  and  Tenant  shall  execute  an
          amendment to the Lease  confirming the extension of the Lease Term and
          the other provisions applicable thereto (the "Amendments").  If Tenant
          exercises  its right to extend  the term of the Lease for the  Renewal
          Term pursuant to this  Addendum,  the term "Lease Term" as used in the
          Lease shall be  construed  to  include,  the  Renewal  Term.  Tenant's
          Extension Notice is irrevocable once given.

     (d)  Calculation  of Market  Rental Rate by Agreement.  The "Market  Rental
          Rate" as herein so called shall be  determined  (i) by mutual  written
          agreement  reached between Landlord and Tenant on or before * (*) days
          after Tenant  shall have  provided the  Extension  Notice,  or (ii) if
          Landlord  or  Tenant  cannot  so  mutually  agree  on  or  before  the
          expiration of such *-day period,  by means of the appraisal  procedure
          set forth below.

          (i)  Appraiser.  If  Landlord  and Tenant  cannot  agree on the Market
               Rental Rate within such *-day period,  Landlord and Tenant shall,
               within * (*) days after the  expiration  of the  above-referenced
               *-day  period,  attempt to agree in writing on an appraiser  (who
               shall in all events be a member of the American Institute of Real
               Estate Appraisers with at least * (*) years experience appraising
               properties of the same type as the Premises in the area where the
               Premises  is  located  (the  "Appraiser  Qualifications"),   such
               appraiser,  an "MAI Lease  Appraiser").  If  Landlord  and Tenant
               agree on an  appraiser  within the  required  period,  the Market
               Rental Rate shall be determined by such single  appraiser  (which
               appraiser shall render its appraisal  within * (*) days after its
               appointment).

          (ii) Appointment of Appraisers.  In the event that Landlord and Tenant
               cannot so mutually agree on an appraiser within the required time
               period,  the Market Value shall be determined by two  appraisers,
               one  appointed by Tenant and one  appointed by Landlord,  each of
               which shall  satisfy  the  Appraiser  Qualifications  and each of
               which shall be appointed  within * (*) days after the  expiration
               of the time period set forth in Section 34.2 above.  In the event
               that  Landlord or Tenant fails to so appoint an appraiser  within
               such time  period,  the other  party  hereto  shall,  upon  prior
               written notice to the other party,  appoint the second  appraiser
               on behalf of such party.

          (iii)Delivery of  Appraisals.  The  appraisals of these two appraisers
               must be completed  and  submitted to Landlord and Tenant within *
               (*) days after their appointment.

          (iv) Averaging  of  Appraisals  - Selection  of Third  Appraiser.  The
               appraisals of these two appraisers shall be averaged to determine
               the Market Value, unless the higher of the two appraisals exceeds
               the  lesser  by * (*) or  more,  in  which  case  the  first  two
               appraisers  shall  appoint  a third  appraiser  within * (*) days
               after the  submission of the first two  appraisals.  If the first
               two  appraisers  are unable to agree  within such period upon the
               third  appraiser,  they shall give  immediate  written  notice to
               Landlord  and Tenant of such  failure to agree,  and, if Landlord
               and  Tenant  fail to  agree  upon  the  selection  of such  third
               appraiser  within * (*) days after the two appraisers give notice
               as aforesaid, then, within * (*) days thereafter, either Landlord
               or Tenant, upon notice to the other, may request such appointment
               by  the  American  Arbitration   Association  (or  any  successor
               organization thereto), or, in the event of the absence,  refusal,
               failure or inability to act of such organization, may apply for a
               court  appointment of such appraiser (which third appraiser shall
               in all events satisfy the Appraiser Qualifications).

          (v)  Delivery of Third  Appraisal.  The third appraiser shall have the
               right to  participate in all meetings of the first two appraisers
               following  its  appointment  and  shall  receive  copies  of  all
               reports,  memoranda  and other  materials  exchanged  between the
               first two  appraisers.  The third  appraiser  shall  conduct such
               hearings and  investigations as it may deem appropriate and shall
               render its  appraisal  within * (*) days  after its  appointment.
               Upon  submission of the appraisal  report of the third  appraiser
               (which  appraisal  report  shall be  submitted  to  Landlord  and
               Tenant),  the two  appraisals  closest  to each  other  shall  be
               averaged and such average shall be the Market Value.

          (vi) Cost and Scope of Appraisals. Tenant and Landlord in equal shares
               shall bear all costs incurred by any appraiser  whether appointed
               by Landlord or Tenant. All appraisal reports shall be in writing.
               In rendering their  respective  appraisals,  the appraisers shall
               not add to,  subtract from or otherwise  modify the provisions of
               this Section.

          (vii)Appraisals  Conclusive.  The determination of the appraisers,  as
               aforesaid, shall be conclusive and binding upon both Landlord and
               Tenant.

33.  Right of First  Refusal.  Provided no Event of Default then exists,  Tenant
     shall have a right of first  refusal to lease the space within the Building
     adjacent to the  Premises at the same lease price  offered by any bona fide
     third party  offer  received  by  Landlord  during the Initial  Term of the
     Lease,  which  offer  Landlord  desires  to  accept.  If Tenant  desires to
     exercise such right, it must do so by written notice to Landlord ("Election
     Notice")  within * (*)  business  days  after  Landlord's  notice to Tenant
     setting  forth the exact terms of the third party offer  ("Offer  Notice").
     Tenant  will  within  * (*)  days of  delivery  from  Landlord  execute  an
     amendment  to this  Lease to include  the  additional  space  which was the
     subject of such third party  offer in the  "Premises",  to adjust  Tenant's
     Share and to make such other  modifications to this Lease as Landlord deems
     reasonably  necessary to be effective upon the later of (i) the date of the
     amendment or (ii) substantial  completion of any finish work as required by
     such third party offer if relevant to Tenant's business.

     This Right of First Refusal shall not apply to space in the Building  which
does not immediately  abut the Premises.  Moreover,  this Right of First Refusal
does not apply to space in any new building constructed adjacent to the Premises
or in the  existing  building  adjacent to the  Premises.  If Tenant does not so
exercise its option to lease the  adjacent  space,  this Right of First  Refusal
shall not survive a lease to said third party  offeree.  No broker's  commission
shall  be owed in  connection  with  the  lease by  Tenant  of any  space in the
Building pursuant to the Right of First Refusal.

     This right is personal to Tenant and may not be assigned separate from this
Lease.

     If Tenant  provides  the  Election  Notice as herein  provided and fails to
execute the Amendment,  then: (i) Tenant will be in breach hereunder;  (ii) this
Right of First  Refusal shall expire,  and not apply to any future  leases;  and
(iii) the ability to terminate the Lease as provided in Section 34 shall, if not
already terminated, expire. If Tenant elects not to exercise this Right of First
Refusal,  Tenant shall provide such reasonable assurances of same as Landlord or
said third party offeree may require.

34.  Early Termination.

     Provided  Tenant is not in default  hereunder,  it shall have the option of
terminating  this Lease ("The Option") during the primary term. The Option shall
be effective  after the end of the * (*) month  following the Rent  Commencement
Date. To exercise The Option,  Tenant must provide  written  notice to Landlord,
the  ("Termination  Notice")  anytime  after the * (*) month  following the Rent
Commencement Date. The Termination Notice shall specify a date which shall be no
less  than * (*)  months  following  the  date  of the  Termination  Notice  the
("Termination  Date").  As  consideration  for The  Option,  Tenant  shall pay a
termination fee to Landlord the  ("Termination  Fee"),  which fee must accompany
the  Termination  Notice,  in the  applicable  amount set forth on  Exhibit  "E"
attached  hereto.  The  Termination  Fee shall be determined by calculating  the
number  of  complete   months  elapsed  in  the  Lease  Term  between  the  Rent
Commencement Date and the Termination Date and using the applicable  Termination
Fee shown on Exhibit "E".

     All payments due under this Lease for the  remaining * (*) months after the
Termination  Notice  will be paid  when  due and all  provisions  regarding  the
surrender  of  the  Premises  shall  apply.   Once  exercised,   The  Option  is
irrevocable.

35.  Exclusivity.

     Provided  (i) Tenant is  operating  in the Premises for the Use provided in
Section 1, (ii) is not in default  hereunder and (iii)  Landlord is the owner of
the buildings currently  municipally  numbered as 1630 and 1680 Hickory Loop (if
any), Landlord agrees not to lease space in such buildings for use as a customer
service/call center, without the prior written consent of Tenant.

36.  Landlord's Warranties.

36.1 Compliance  with  Laws.  Landlord  warrants  to  Tenant  that the  Premises
     (excluding,  any  improvements  or alterations  performed by Tenant) in the
     state existing on the date that this Lease commences, but without regard to
     the use for which  Tenant  will occupy the  Premises,  does not violate any
     covenants or  restrictions  of record,  or any  applicable  building  code,
     regulation  or ordinance in effect on the date upon which Lease  commences.
     In the event that it is determined  that this  warranty has been  violated,
     then it shall be the  obligation  of Landlord,  after  written  notice from
     Tenant, to promptly, at Landlord's sole cost and expense,  rectify any such
     violation.  In the event Tenant does not give to Landlord written notice of
     the  violation  of this  warranty  within one year from the date upon which
     this  Lease  commences,  the  correction  of same  shall no  longer  be the
     obligation  of  Landlord.  Landlord  shall  comply with and shall cause the
     Building  throughout the Term of this Lease,  to be in compliance  with all
     applicable  Laws  (as  herinafter   defined).   Landlord  shall  be  solely
     responsible  for all changes to the Project  (excluding the interior of the
     Premises)  required to comply with all Laws, except for changes required to
     comply with Laws which are due solely to Tenant's occupancy,  use or manner
     of use of the  Project.  As used  herein,  "Laws"  shall mean all  federal,
     state,  county  and  local  laws,  statutes,   codes,  ordinances,   rules,
     regulations,  decrees,  orders and other such requirements now or hereafter
     imposed, including, but not limited to, the Americans with Disabilities Act
     and any and all Environmental Laws.

36.2 No  Latent Defects Landlord  warrants  to Tenant  that  there are no latent
     defects in the Premises.  If such latent  defects are discovered by Tenant,
     Tenant shall provide immediate written notice to Landlord of same and shall
     allow  Landlord a period of * (*) days to correct  such  latent  defects or
     initiate  actions  to correct  such  latent  defects if the same  cannot be
     reasonably  completed  within * (*) days. In the event Tenant does not give
     Landlord  written notice of latents defects within * (*) days from the date
     upon  which  this  Lease  commences,  Landlord  shall  no  longer  have the
     obligation to correct the same.

36.3 Hazardous Materials. Landlord to the best of Landlord's knowledge and after
     reasonable  inquiry,  hereby  represents  to Tenant that, as of the date of
     this Lease,  no Hazardous  Materials are located in, on, under or about the
     Premises  and  that  the  Premises  is not  currently  and has not been the
     subject of any investigation or remedial action imposed by federal state or
     local  regulatory   authorities  with  jurisdiction   concerning  Hazardous
     Materials.

     IN WITNESS  WHEREOF,  Landlord  and Tenant have signed this Lease as of the
day and year first above written.

                                       LANDLORD:

                                       Mesilla Valley Business Park, LLC

                                       BY:      Mesita Investors, L.L.C.
                                       ITS:     General Partner
                                       BY:      Meyer Marcus
                                       ITS:     Manager

                                       ADDRESS: 6500 Montana Avenue
                                                El Paso, Texas 79925

                                       TENANT:

                                       Frontier Airlines, Inc., A Colorado
                                       Corporation

                                       BY:     _________________________
                                       ITS:    _________________________

                                       ADDRESS: 12015 East 46th Avenue
                                                Denver, Colorado  80239
                                       Phone Number:     ___________________
                                       Fax Number:       ___________________

<PAGE>

             RULES AND REGULATIONS FOR MESILLA VALLEY BUSINESS PARK

(a)  Tenant shall not place or maintain  any  merchandise,  vending  machines or
     other  articles in any  vestibule  or entry of the  Premises or outside the
     Premises;

(b)  Tenant shall store  garbage,  trash,  rubbish and other refuse in rat-proof
     and insect-proof  containers  inside the Premises or at such other location
     as  directed by  Landlord.  Tenant  shall  remove the same  frequently  and
     regularly,  subject to the  direction of Landlord by such means and methods
     and at such times and  intervals  as are  designated  by  Landlord,  all at
     Tenant's cost;

(c)  Tenant shall not permit any audible sound system or  objectionable  visible
     advertising medium outside the Premises;

(d)  Tenant shall keep all mechanical equipment free of vibration and noise, and
     in good working order and condition;

(e)  Tenant  shall not  commit or permit  waste or a nuisance  on the  Premises,
     including,  without limitation,  any noxious,  toxic or corrosive emissions
     from the  Premises or the placing of any upon the  Premises,  and shall not
     permit or cause odors to emanate or be dispelled from the Premises;

(f)  Tenant  shall  not  solicit  business  in the  Common  Area nor  distribute
     advertising matter in or upon the Common Area;

(g)  Tenant shall not permit the loading or unloading or the parking or standing
     of delivery vehicles outside any area designated  therefor,  nor permit any
     use of vehicles which will interfere with the use of the Common Area in the
     Project nor permit its employees to park anywhere in the Project other than
     those areas designated from time to time by Landlord as "Additional Parking
     Area";

(h)  Tenant shall not place a load on any floor in the Project which exceeds the
     floor load per square foot which such floor was designed to carry;

(i)  Subject to the rights  granted to Tenant in the Lease,  Landlord shall have
     the exclusive  right to use all or part of the roof, side and rear walls of
     the Premises for any purpose,  including but not limited to erecting  signs
     or  other  structures  on or over  all or any  part of the  same,  erecting
     scaffolds and other aids to the  construction and installation of the same,
     and installing,  maintaining, using, repairing, and replacing pipes, ducts,
     conduits  and wires  leading  through,  to or from the Premises and serving
     other parts of the Project in locations  which do not materially  interfere
     with Tenant's use of the Premises;

(j)  Subject to the rights to Tenant in the  Lease,  Tenant  shall have no right
     whatsoever to the exterior walls or the roof of the Premises or any portion
     of the Project outside the Premises,  except as otherwise  provided in this
     Lease; and

(k)  Tenant shall make no use of the  Premises or the Project  which would cause
     the premiums on the insurance carried by Landlord,  if any, to be increased
     or which would cause such insurance to be canceled.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00011-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00011-of-00352.parquet"}]]