Document:

<PAGE>   1
                                                                   EXHIBIT 10.46

                                  EXECUTION

 THE OBLIGATIONS OF USEC INC. UNDER THIS AMENDED AND RESTATED REVOLVING LOAN
  AGREEMENT ARE NOT OBLIGATIONS OF, AND ARE NOT GUARANTEED AS TO PRINCIPAL,
        INTEREST OR ANY OTHER AMOUNT BY, THE UNITED STATES OF AMERICA.

                AMENDED AND RESTATED REVOLVING LOAN AGREEMENT

                          Dated as of July 21, 2000

                                    among

                                  USEC INC.

                           THE LENDERS HEREIN NAMED

                          FIRST UNION NATIONAL BANK
                             as Syndication Agent

                     WACHOVIA BANK, NATIONAL ASSOCIATION
                            as Documentation Agent

                            BANK OF AMERICA, N.A.
                           as Administrative Agent

                                     and

                        BANC OF AMERICA SECURITIES LLC
                               as Lead Arranger

<PAGE>   2
                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                             Page
                                                                             ----
<S>                                                                           <C>
Article 1
      DEFINITIONS AND ACCOUNTING TERMS.........................................1
      1.1   Defined Terms......................................................1
      1.2   Use of Defined Terms..............................................17
      1.3   Accounting Terms..................................................17
      1.4   Rounding..........................................................1
      1.5   Exhibits and Schedules............................................18
      1.6   References to "Borrower and its Subsidiaries".....................28
      1.7   Miscellaneous Terms...............................................28

Article 2
      LOANS...................................................................19
      2.1   Loans-General.....................................................19
      2.2   Base Rate Loans...................................................20
      2.3   Eurodollar Rate Loans.............................................20
      2.4   [Intentionally Omitted]...........................................20
      2.5   [Intentionally Omitted]...........................................20
      2.6   Voluntary Reduction of Commitment.................................20
      2.7   [Intentionally Omitted]...........................................20
      2.8   Optional Termination of Commitment................................20
      2.9   Administrative Agent's Right to Assume Funds Available for
            Advances..........................................................21
      2.10  Guaranty..........................................................21
      2.11  Adjusting Purchase Payments.......................................21

Article 3
      PAYMENTS AND FEES.......................................................22
      3.1   Principal and Interest............................................22
      3.2   Arranger and Agency Fees..........................................23
      3.3   Facility Fee......................................................23
      3.4   Utilization Fee...................................................23
      3.5   [Intentionally Omitted]...........................................23
      3.6   [Intentionally Omitted]...........................................23
      3.7   Increased Commitment Costs........................................23
      3.8   Eurodollar Costs and Related Matters..............................24
      3.9   Late Payments.....................................................27
      3.10  Computation of Interest and Fees..................................27
      3.11  Non-Banking Days..................................................27
      3.12  Manner and Treatment of Payments..................................27
      3.13  Funding Sources...................................................29
      3.14  Failure to Charge Not Subsequent Waiver...........................29
      3.15  Administrative Agent's Right to Assume Payments Will be Made......29
      3.16  Fee Determination Detail..........................................29
      3.17  Survivability.....................................................29
      3.18  Substitution of Lender............................................30
      3.19  Accruals Under Pre-Existing Loan Documents........................30
</TABLE>

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<PAGE>   3

<TABLE>
<S>                                                                           <C>
   Article 4
      REPRESENTATIONS AND WARRANTIES..........................................31
      4.1   Existence and Qualification; Power; Compliance With Laws..........31
      4.2   Authority; Compliance With Other Agreements and Instruments and
            Government Regulations............................................31
      4.3   No Governmental Approvals Required................................32
      4.4   Subsidiaries......................................................32
      4.5   Financial Statements..............................................32
      4.6   No Other Liabilities; No Material Adverse Changes.................33
      4.7   Title to and Location of Property.................................33
      4.8   Intellectual Property.............................................33
      4.9   Public Utility Holding Company Act................................33
      4.10  Litigation........................................................33
      4.11  Binding Obligations...............................................33
      4.12  No Default........................................................33
      4.13  ERISA.............................................................34
      4.14  Regulation U; Investment Company Act..............................34
      4.15  Disclosure........................................................34
      4.16  Tax Liability.....................................................34
      4.17  [Intentionally Omitted]...........................................34
      4.18  Hazardous Materials...............................................35
      4.19  Solvency..........................................................35
      4.20  [Intentionally Omitted]...........................................35
      4.21  [Intentionally Omitted]...........................................35
      4.22  [Intentionally Omitted]...........................................35

   Article 5
      AFFIRMATIVE COVENANTS(OTHER THAN INFORMATION AND REPORTING
      REQUIREMENTS)...........................................................36
      5.1   Payment of Taxes and Other Potential Liens........................36
      5.2   Preservation of Existence.........................................36
      5.3   Maintenance of Properties.........................................36
      5.4   Maintenance of Insurance..........................................36
      5.5   Compliance With Laws..............................................36
      5.6   Inspection Rights.................................................36
      5.7   Keeping of Records and Books of Account...........................37
      5.8   Compliance With Agreements........................................37
      5.9   Use of Proceeds...................................................37
      5.10  Hazardous Materials Laws..........................................37
      5.11  Future Subsidiaries...............................................37

   Article 6
      NEGATIVE COVENANTS......................................................38
      6.1   Disposition of Property...........................................38
      6.2   Mergers...........................................................38
      6.3   Hostile Acquisitions..............................................38
      6.4   Distributions.....................................................38
      6.5   ERISA.............................................................38
      6.6   Change in Nature of Business......................................39
      6.7   Liens and Negative Pledges........................................39
</TABLE>

                                     -ii-
<PAGE>   4

<TABLE>
<S>                                                                           <C>
      6.8   Transactions with Affiliates......................................39
      6.9   Stockholders' Equity..............................................39
      6.10  Capitalization Ratio..............................................39
      6.11  Investments.......................................................39
      6.12  Subsidiary Indebtedness...........................................40

   Article 7
      INFORMATION AND REPORTING REQUIREMENTS..................................41
      7.1   Financial and Business Information................................41
      7.2   Compliance Certificates...........................................42

   Article 8
      CONDITIONS..............................................................43
      8.1   Initial Advances..................................................43
      8.2   Any Advance.......................................................44
      8.3   Return of Pre-Existing Notes......................................45

   Article 9
      EVENTS OF DEFAULT AND REMEDIES UPON EVENT OF DEFAULT....................46
      9.1   Events of Default.................................................46
      9.2   Remedies Upon Event of Default....................................48

   Article 10
      THE ADMINISTRATIVE AGENT................................................50
      10.1  Appointment and Authorization.....................................50
      10.2  Administrative Agent and Affiliates...............................50
      10.3  Proportionate Interest in any Collateral..........................50
      10.4  Lenders' Credit Decisions.........................................50
      10.5  Action by Administrative Agent....................................51
      10.6  Liability of Administrative Agent.................................51
      10.7  Indemnification...................................................52
      10.8  Successor Administrative Agent....................................53
      10.9  No Obligations of Borrower........................................53

   Article 11
      MISCELLANEOUS...........................................................54
      11.1  Cumulative Remedies; No Waiver....................................54
      11.2  Amendments; Consents..............................................54
      11.3  Costs, Expenses and Taxes.........................................55
      11.4  Nature of Lenders' Obligations....................................55
      11.5  Survival of Representations and Warranties........................55
      11.6  Notices...........................................................55
      11.7  Execution of Loan Documents.......................................56
      11.8  Binding Effect; Assignment........................................56
      11.9  Right of Setoff...................................................58
      11.10 Sharing of Setoffs................................................58
      11.11 Indemnity by Borrower.............................................59
      11.12 Nonliability of the Lenders.......................................60
      11.13 No Third Parties Benefitted.......................................60
      11.14 Confidentiality...................................................61
</TABLE>

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<PAGE>   5
<TABLE>
<S>                                                                           <C>
      11.15 Further Assurances................................................61
      11.16 Integration.......................................................61
      11.17 Governing Law.....................................................61
      11.18 Severability of Provisions........................................61
      11.19 Headings..........................................................62
      11.20 Time of the Essence...............................................62
      11.21 Foreign Lenders and Participants..................................62
      11.22 Hazardous Material Indemnity......................................62
      11.23 Waiver of Right to Trial by Jury..................................63
      11.24 Purported Oral Amendments.........................................63
</TABLE>

Exhibits

A     -   Commitment Assignment and Acceptance
B     -   Compliance Certificate
C     -   Note
D     -   Opinion of Counsel
E     -   Request for Loan
F     -   Subsidiary Guaranty

Schedules

1.1       Lender Commitments
2.11      Adjusting Purchase Payment(s)
4.4(a)    Subsidiaries
4.4(c)    Compliance With Laws
4.6       Material Adverse Changes
4.7       Existing Liens, Negative Pledges and Rights of Others
4.8       Intellectual Property Matters
4.10      Material Litigation
4.18      Hazardous Materials Matters
6.11  Existing Investments

                                       -iv-
<PAGE>   6
THE OBLIGATIONS OF USEC INC. UNDER THIS AMENDED AND RESTATED REVOLVING LOAN
AGREEMENT ARE NOT OBLIGATIONS OF, AND ARE NOT GUARANTEED AS TO PRINCIPAL,
INTEREST OR ANY OTHER AMOUNT BY, THE UNITED STATES OF AMERICA.

                AMENDED AND RESTATED REVOLVING LOAN AGREEMENT

                            Dated as of July 21, 2000

            This AMENDED AND RESTATED REVOLVING LOAN AGREEMENT ("Agreement") is
      entered into by and among USEC Inc., a Delaware corporation ("Borrower"),
      each lender whose name is set forth on the signature pages of this
      Agreement and each lender which may hereafter become a party to this
      Agreement pursuant to Section 11.8 (collectively, the "Lenders" and
      individually, a "Lender"), First Union National Bank, as Syndication
      Agent, Wachovia Bank, National Association, as Documentation Agent, Bank
      of America, N.A., as Administrative Agent, and Banc of America Securities
      LLC, as Lead Arranger.

            This Agreement is intended by the parties hereto as an amendment and
      restatement of the Original Loan Agreement as of the effective date of
      this Agreement. Amounts outstanding and committed under the Original Loan
      Agreement and evidenced by the Pre-Existing Notes shall, upon the
      effectiveness of this Agreement, be deemed to be outstanding and committed
      hereunder and evidenced by the Notes, subject, however, to all terms and
      conditions hereunder and under the other Loan Documents, including without
      limitation the allocation of the Commitment among the Lenders as provided
      herein.

            In consideration of the mutual covenants and agreements herein
      contained, the parties hereto covenant and agree as follows:

                                    Article 1
                        DEFINITIONS AND ACCOUNTING TERMS

            1.1 Defined Terms. As used in this Agreement, the following terms
      shall have the meanings set forth below:

            "Adjusting Purchase Payment(s)" has the meaning given that term in
      Section 2.11.

            "Administrative Agent" means Bank of America, N. A. when acting
      in its capacity as the Administrative Agent under any of the Loan
      Documents, or any successor Administrative Agent.

            "Administrative Agent's Office" means the Administrative Agent's
      address as set forth on the signature pages of this Agreement, or such
      other address as the Administrative Agent hereafter may designate by
      written notice to Borrower and the Lenders.

            "Advance" means any advance made or to be made by any Lender to
      Borrower as provided in Article 2, and includes each Base Rate Advance and
      Eurodollar Rate Advance.

                                      -1-
<PAGE>   7

               "Affiliate" means, as to any Person, any other Person which
         directly or indirectly controls, or is under common control with, or is
         controlled by, such Person. As used in this definition, "control" (and
         the correlative terms, "controlled by" and "under common control with")
         shall mean possession, directly or indirectly, of power to direct or
         cause the direction of management or policies (whether through
         ownership of securities or partnership or other ownership interests, by
         contract or otherwise); provided that, in any event, any Person that
         owns, directly or indirectly, 10% or more of the securities having
         ordinary voting power for the election of directors or other governing
         body of a corporation that has more than 100 record holders of such
         securities, or 10% or more of the partnership or other ownership
         interests of any other Person that has more than 100 record holders of
         such interests, will be deemed to be an Affiliate of such corporation,
         partnership or other Person.

               "Agreement" means this Amended and Restated Revolving Loan
         Agreement, either as originally executed or as it may from time to time
         be supplemented, modified, amended, restated or extended.

               "Applicable Eurodollar Margin" means, during the continuance of
         any Applicable Pricing Level, the interest rate margin set forth below
         (expressed in basis points per annum) opposite that Applicable Pricing
         Level:

<TABLE>
<CAPTION>
                       --------------------------------
                          Applicable
                         Pricing Level     Margin
                       --------------------------------
                         <S>              <C>
                              I             80.0
                       --------------------------------
                             II             100.0
                       --------------------------------
                             III            120.0
                       --------------------------------
                             IV             137.5
                       --------------------------------
                              V             155.0
                       --------------------------------
</TABLE>

               "Applicable Facility Fee Rate" means, during the continuance of
         any Applicable Pricing Level, the rate set forth below (expressed in
         basis points per annum) opposite that Applicable Pricing Level:

<TABLE>
<CAPTION>
                       --------------------------------
                           Applicable
                          Pricing Level     Rate
                       --------------------------------
                          <S>              <C>
                              I             20.0
                       --------------------------------
                             II             25.0
                       --------------------------------
                             III            30.0
                       --------------------------------
                             IV             37.5
                       --------------------------------
</TABLE>

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<PAGE>   8
<TABLE>
<CAPTION>
                       --------------------------------
                           Applicable
                          Pricing Level     Rate
                       --------------------------------
                          <S>              <C>

                              V             45.0
                       --------------------------------
</TABLE>

            "Applicable Pricing Level" means the pricing level set forth below
      opposite the credit rating then given to Borrower's long-term senior
      unsecured debt which is not the beneficiary of any external credit
      enhancement by Standard & Poor's Rating Group (a division of McGraw-Hill,
      Inc.) ("S&P") and Moody's Investors Service, Inc. ("Moody's"), provided
      that if either or both S&P and Moody's have rated Borrower's Obligations
      to the Lenders under this Agreement, such rating(s) shall be used instead:

<TABLE>
<CAPTION>

                   Applicable           Credit Rating
                  Pricing Level         (S&P/Moody's)
                  -------------         -------------
                   <S>                  <C>
                        I               BBB/Baa2 or higher
                        II              BBB-/Baa3
                       III              BB+/Ba1
                        IV              BB/Ba2
                        V               BB-/Ba3 or lower
</TABLE>

      The following convention shall apply with respect to the foregoing: the
      lower of such credit ratings shall be used to determine the Applicable
      Pricing Level unless such credit ratings are split by more than one level,
      in which case the credit rating that is one level higher than the lower of
      the two credit ratings shall be used to determine the Applicable Pricing
      Level.

            "Bank of America" means Bank of America, N.A., as a Lender.

            "Banking Day" means any Monday, Tuesday, Wednesday, Thursday or
      Friday, other than a day on which banks are authorized or required to be
      closed in California, New York, or North Carolina.

            "Base Rate" means the higher of (a) the Prime Rate and (b) one-half
      percent per annum above the Federal Funds Rate.

            "Base Rate Advance" means an Advance made hereunder and specified to
      be an Base Rate Advance in accordance with Article 2.

            "Base Rate Loan" means a Loan made hereunder and specified to be an
      Base Rate Loan in accordance with Article 2.

            "Borrower" means USEC Inc., a Delaware corporation, and its
      successors.

            "Capital Lease Obligations" means all monetary obligations of a
      Person under any leasing or similar arrangement which, in accordance with
      GAAP, is classified as a capital lease.

                                      -3-
<PAGE>   9
            "Cash" means, when used in connection with any Person, all monetary
      and non-monetary items owned by that Person that are treated as cash in
      accordance with GAAP, consistently applied.

               "Cash Equivalents" means, when used in connection with any
      Person, that Person's Investments in:

                  (a) Government Securities due within one year after the date
      of the making of the Investment;

                  (b) readily marketable direct obligations of any State of the
      United States of America or any political subdivision of any such State
      or any public agency or instrumentality thereof given on the date of such
      Investment a credit rating of at least A3 by Moody's Investors Service,
      Inc. or A- by Standard & Poor's Rating Group (a division of McGraw-Hill,
      Inc.), in each case due within one year from the making of the
      Investment;

                  (c) certificates of deposit issued by, bank deposits in,
      Eurodollar deposits through, bankers' acceptances of, and repurchase
      agreements covering Government Securities executed by any Lender or any
      bank incorporated under the Laws of the United States of America, any
      State thereof or the District of Columbia and having on the date of such
      Investment combined capital, surplus and undivided profits of at least
      $250,000,000, or total assets of at least $5,000,000,000, in each case
      due within one year after the date of the making of the Investment;

                  (d) certificates of deposit issued by, bank deposits in,
      Eurodollar deposits through, bankers' acceptances of, and repurchase
      agreements covering Government Securities executed by any Lender or any
      branch or office located in the United States of America of a bank
      incorporated under the Laws of any jurisdiction outside the United States
      of America having on the date of such Investment combined capital,
      surplus and undivided profits of at least $500,000,000, or total assets
      of at least $15,000,000,000, in each case due within one year after the
      date of the making of the Investment;

                  (e) repurchase agreements covering Government Securities
      executed by a broker or dealer registered under Section 15(b) of the
      Securities Exchange Act of 1934, as amended, having on the date of the
      Investment capital of at least $50,000,000, due within 90 days after the
      date of the making of the Investment; provided that the maker of the
      Investment receives written confirmation of the transfer to it of record
      ownership of the Government Securities on the books of a "primary dealer"
      in such Government Securities or on the books of such registered broker
      or dealer, as soon as practicable after the making of the Investment;

                  (f) readily marketable commercial paper or other debt
      securities issued by corporations doing business in and incorporated
      under the Laws of the United States of America or any State thereof or of
      any corporation that is the holding company for a bank described in
      clause (c) or (d) above given on the date of such Investment a credit
      rating of at least P-2 by Moody's Investors Service, Inc. or A-2 by
      Standard & Poor's Rating Group (a division of McGraw-Hill, Inc.), in each
      case due within one year after the date of the making of the Investment;

                  (g) "money market preferred stock" issued by a corporation
      incorporated under the Laws of the United States of America or any State
      thereof (i) given on the date of such Investment a credit rating of at
      least A3 by Moody's Investors Service, Inc. and A- by Standard & Poor's
      Rating Group (a division of McGraw-Hill, Inc.), in each case having an
      investment period not exceeding 50 days or (ii) to the extent that
      investors therein have the benefit of a standby letter of credit issued
      by

                                      -4-
<PAGE>   10

      a Lender or a bank described in clauses (c) or (d) above; provided that
      (y) the amount of all such Investments issued by the same issuer does not
      exceed $5,000,000 and (z) the aggregate amount of all such Investments
      does not exceed $15,000,000;

                  (h) a readily redeemable "money market mutual fund" sponsored
      by a bank described in clause (c) or (d) hereof, or a registered broker
      or dealer described in clause (e) hereof, that has and maintains an
      investment policy limiting its investments primarily to instruments of
      the types described in clauses (a) through (g) hereof and given on the
      date of such Investment a credit rating of at least A3 by Moody's
      Investors Service, Inc. and A- by Standard & Poor's Rating Group (a
      division of McGraw-Hill, Inc.); and

                  (i) corporate notes or bonds having an original term to
      maturity of not more than one year issued by a corporation incorporated
      under the Laws of the United States of America, or a participation
      interest therein; provided that (i) commercial paper issued by such
      corporation is given on the date of such Investment a credit rating of at
      least P2 by Moody's Investors Service, Inc. and A2 by Standard & Poor's
      Rating Group (a division of McGraw-Hill, Inc.), (ii) the amount of all
      such Investments issued by the same issuer does not exceed $5,000,000 and
      (iii) the aggregate amount of all such Investments does not exceed
      $15,000,000.

            "Certificate" means a certificate signed by a Senior Officer or
      Responsible Official (as applicable) of the Person providing the
      certificate.

            "Change in Control" means (a) any transaction or series of related
      transactions in which any Unrelated Person or two or more Unrelated
      Persons acting in concert acquire beneficial ownership (within the meaning
      of Rule 13d-3(a)(1) under the Securities Exchange Act of 1934, as
      amended), directly or indirectly, of 35% or more of the outstanding Common
      Stock, (b) Borrower consolidates with or merges into another Person or
      conveys, transfers or leases its properties and assets substantially as an
      entirety to any Person or any Person consolidates with or merges into
      Borrower, in either event pursuant to a transaction in which the
      outstanding Common Stock is changed into or exchanged for cash, securities
      or other property, with the effect that any Unrelated Person becomes the
      beneficial owner, directly or indirectly, of 35% or more of Common Stock
      or that the Persons who were the holders of Common Stock immediately prior
      to the transaction hold less than 65% of the common stock of the surviving
      corporation after the transaction, (c) during any period of 24 consecutive
      months, individuals who at the beginning of such period constituted the
      board of directors of Borrower (together with any new or replacement
      directors whose election by the board of directors, or whose nomination
      for election, was approved by a vote of at least a majority of the
      directors then still in office who were either directors at the beginning
      of such period or whose election or nomination for reelection was
      previously so approved) cease for any reason to constitute a majority of
      the directors then in office or (d) a "change in control" as defined in
      any document governing Indebtedness of Borrower in excess of $10,000,000
      which gives the holders of such Indebtedness the right to accelerate or
      otherwise require payment of such Indebtedness prior to the maturity date
      thereof. For purposes of the foregoing, the term "Unrelated Person" means
      any Person other than (i) a Subsidiary of Borrower or (ii) an employee
      stock ownership plan or other employee benefit plan covering the employees
      of Borrower and its Subsidiaries.

            "Closing Date" means the time and Banking Day on which the
      conditions set forth in Section 8.1 are satisfied or waived. The
      Administrative Agent shall notify Borrower and the Lenders of the date
      that is the Closing Date.

                                      -5-
<PAGE>   11

            "Code" means the Internal Revenue Code of 1986, as amended or
      replaced and as in effect from time to time.

            "Commitment" means, subject to Section 2.6, $115,000,000. The
      respective Pro Rata Shares of the Lenders with respect to the Commitment
      are set forth in Schedule 1.1.

            "Commitment Assignment and Acceptance" means a commitment assignment
      and acceptance substantially in the form of Exhibit A.

            "Common Stock" means the common stock of Borrower or its successor.

            "Compliance Certificate" means a certificate in the form of Exhibit
      B, properly completed and signed by a Senior Officer of Borrower.

            "Contractual Obligation" means, as to any Person, any provision of
      any outstanding security issued by that Person or of any material
      agreement, instrument or undertaking to which that Person is a party or by
      which it or any of its Property is bound.

            "Debtor Relief Laws" means the Bankruptcy Code of the United States
      of America, as amended from time to time, and all other applicable
      liquidation, conservatorship, bankruptcy, moratorium, rearrangement,
      receivership, insolvency, reorganization, or similar debtor relief Laws
      from time to time in effect affecting the rights of creditors generally.

            "Default" means any event that, with the giving of any applicable
      notice or passage of time specified in Section 9.1, or both, would be an
      Event of Default.

            "Default Rate" means the interest rate prescribed in Section 3.9.

            "Designated Eurodollar Market" means the Eurodollar Market in
      London, England.

            "Disposition" means the sale, transfer or other disposition in any
      single transaction or series of related transactions of any asset, or
      group of related assets, of Borrower or any of its Subsidiaries (a) which
      asset or assets constitute an entire segment of business or substantially
      all the assets of Borrower or (b) the aggregate amount of the Net Cash
      Sales Proceeds of such assets is more than $2,000,000, other than (i)
      Cash, Cash Equivalents, inventory or other assets sold or otherwise
      disposed of in the ordinary course of business of Borrower or its
      Subsidiary, (ii) assets sold or otherwise disposed of where substantially
      similar assets in replacement thereof have theretofore been acquired, or
      thereafter within six (6) months are acquired, by Borrower or its
      Subsidiary and (iii) obsolete assets no longer useful in the business of
      Borrower and its Subsidiaries.

            "Disqualified Stock" means any capital stock, warrants, options or
      other rights to acquire capital stock (but excluding any debt security
      which is convertible, or exchangeable, for capital stock), which, by its
      terms (or by the terms of any security into which it is convertible or for
      which it is exchangeable), or upon the happening of any event, matures or
      is mandatorily redeemable, pursuant to a sinking fund obligation or
      otherwise, or is redeemable at the option of the holder thereof, in whole
      or in part, on or prior to the Maturity Date.

            "Distribution" means, with respect to any shares of capital stock or
      any warrant or option to purchase an equity security or other equity
      security issued by a Person, (a) the retirement, redemption,

                                      -6-
<PAGE>   12

      purchase or other acquisition for Cash or for Property by such Person of
      any such security, (b) the declaration or (without duplication) payment by
      such Person of any dividend in Cash or in Property on or with respect to
      any such security, (c) any Investment by such Person in the holder of 5%
      or more of any such security if a purpose of such Investment is to avoid
      characterization of the transaction as a Distribution and (d) any other
      payment in Cash or Property by such Person constituting a distribution
      under applicable Laws with respect to such security.

            "Documentation Agent" means Wachovia Bank, National Association. The
      Documentation Agent shall have no rights, duties, allegations or
      responsibilities beyond those of a Lender.

            "Dollars" or "$" means United States of America dollars.

            "Eligible Assignee" means (a) another Lender, (b) with respect to
      any Lender, any Affiliate of that Lender, (c) any commercial bank having
      total assets of $10,000,000,000 or more, (d) any (i) savings bank, savings
      and loan association or similar financial institution or (ii) insurance
      company engaged in the business of writing insurance which, in either case
      (A) has total assets of $10,000,000,000 or more, (B) is engaged in the
      business of lending money and extending credit under credit facilities
      substantially similar to those extended under this Agreement and (C) is
      operationally and procedurally able to meet the obligations of a Lender
      hereunder to the same degree as a commercial bank and (e) any other
      financial institution (including a mutual fund or other fund) having total
      assets of $10,000,000,000 or more which meets the requirements set forth
      in subclauses (B) and (C) of clause (d) above; provided that each Eligible
      Assignee must either (aa) be organized under the Laws of the United States
      of America, any State thereof or the District of Columbia or (bb) be
      organized under the Laws of the Cayman Islands or any country which is a
      member of the Organization for Economic Cooperation and Development, or a
      political subdivision of such a country, and (i) act hereunder through a
      branch, agency or funding office located in the United States of America
      and (ii) be exempt from withholding of tax on interest and deliver the
      documents related thereto pursuant to Section 11.21.

            "ERISA" means the Employee Retirement Income Security Act of 1974,
      and any regulations issued pursuant thereto, as amended or replaced and as
      in effect from time to time.

            "ERISA Affiliate" means each Person (whether or not incorporated)
      which is required to be aggregated with Borrower pursuant to Section 414
      of the Code.

            "Eurodollar Banking Day" means any Banking Day on which dealings in
      Dollar deposits are conducted by and among banks in the Designated
      Eurodollar Market.

            "Eurodollar Lending Office" means, as to each Lender, its office or
      branch so designated by written notice to Borrower and the Administrative
      Agent as its Eurodollar Lending Office. If no Eurodollar Lending Office is
      designated by a Lender, its Eurodollar Lending Office shall be its office
      at its address for purposes of notices hereunder.

            "Eurodollar Market" means a regular established market located
      outside the United States of America by and among banks for the
      solicitation, offer and acceptance of Dollar deposits in such banks.

            "Eurodollar Obligations" means eurocurrency liabilities, as defined
      in Regulation D or any comparable regulation of any Governmental Agency
      having jurisdiction over any Lender.

                                      -7-
<PAGE>   13
            "Eurodollar Period" means, as to each Eurodollar Rate Loan, the
      period commencing on the date specified by Borrower pursuant to Section
      2.1(c) and ending 1, 2, 3 or 6 months thereafter, as specified by Borrower
      in the applicable Request for Loan; provided that:

                  (a) The first day of any Eurodollar Period shall be a
      Eurodollar Banking Day;

                  (b) Any Eurodollar Period that would otherwise end on a day
      that is not a Eurodollar Banking Day shall be extended to the immediately
      succeeding Eurodollar Banking Day unless such Eurodollar Banking Day falls
      in another calendar month, in which case such Eurodollar Period shall end
      on the immediately preceding Eurodollar Banking Day; and

                  (c) No Eurodollar Period shall extend beyond the Maturity
      Date.

               "Eurodollar Rate" means, with respect to any Eurodollar Rate
      Loan, the average of the interest rates per annum (rounded upward, if
      necessary, to the next 1/16 of 1%) at which deposits in Dollars are
      offered to the Administrative Agent in the Designated Eurodollar Market at
      or about 11:00 a.m. local time in the Designated Eurodollar Market, two
      (2) Eurodollar Banking Days before the first day of the applicable
      Eurodollar Period in an aggregate amount approximately equal to the amount
      of the Advance to be made by the Administrative Agent with respect to such
      Eurodollar Rate Loan and for a period of time comparable to the number of
      days in the applicable Eurodollar Period.

               "Eurodollar Rate Advance" means an Advance made hereunder and
      specified to be a Eurodollar Rate Advance in accordance with Article 2.

               "Eurodollar Rate Loan" means a Loan made hereunder and specified
      to be a Eurodollar Rate Loan in accordance with Article 2.

               "Event of Default" shall have the meaning provided in Section
      9.1.

               "Facility" means the credit facility extended by the Lenders to
      Borrower under this Agreement.

               "Federal Funds Rate" means, as of any date of determination, the
      rate set forth in the weekly statistical release designated as H.15(519),
      or any successor publication, published by the Federal Reserve Board
      (including any such successor, "H.15(519)") for such date opposite the
      caption "Federal Funds (Effective)". If for any relevant date such rate is
      not yet published in H.15(519), the rate for such date will be the rate
      set forth in the daily statistical release designated as the Composite
      3:30 p.m. Quotations for U.S. Government Securities, or any successor
      publication, published by the Federal Reserve Lender of New York
      (including any such successor, the "Composite 3:30 p.m. Quotation") for
      such date under the caption "Federal Funds Effective Rate". If on any
      relevant date the appropriate rate for such date is not yet published in
      either H.15(519) or the Composite 3:30 p.m. Quotations, the rate for such
      date will be the arithmetic mean of the rates for the last transaction in
      overnight Federal funds arranged prior to 9:00 a.m. (New York City time)
      on that date by each of three leading brokers of Federal funds
      transactions in New York City selected by the Administrative Agent. For
      purposes of this Agreement, any change in the Base Rate due to a change in
      the Federal Funds Rate shall be effective as of the opening of business on
      the effective date of such change.

               "Fiscal Quarter" means the fiscal quarter of Borrower ending on
      each September 30, December 31, March 31 and June 30.

                                      -8-
<PAGE>   14

            "Fiscal Year" means the fiscal year of Borrower ending on each June
      30.

            "GAAP" means, as of any date of determination, accounting principles
      (a) set forth as generally accepted in then currently effective Opinions
      of the Accounting Principles Board of the American Institute of Certified
      Public Accountants, (b) set forth as generally accepted in then currently
      effective Statements of the Financial Accounting Standards Board or (c)
      that are then approved by such other entity as may be approved by a
      significant segment of the accounting profession in the United States of
      America. The term "consistently applied," as used in connection therewith,
      means that the accounting principles applied are consistent in all
      material respects with those applied at prior dates or for prior periods.

            "Government Securities" means readily marketable (a) direct full
      faith and credit obligations of the United States of America or
      obligations guaranteed by the full faith and credit of the United States
      of America and (b) obligations of an agency or instrumentality of, or
      corporation owned, controlled or sponsored by, the United States of
      America that are generally considered in the securities industry to be
      implicit obligations of the United States of America.

            "Governmental Agency" means (a) any international, foreign, federal,
      state, county or municipal government, or political subdivision thereof,
      (b) any governmental or quasi-governmental agency, authority, board,
      bureau, commission, department, instrumentality or public body or (c) any
      court or administrative tribunal of competent jurisdiction.

            "Guaranty Obligation" means, as to any Person, any (a) guarantee by
      that Person of Indebtedness of any other Person or (b) assurance given by
      that Person to a creditor of any other Person with respect to the payment
      of Indebtedness by, or the financial condition of, such other Person,
      whether direct, indirect or contingent, including any purchase or
      repurchase agreement covering such obligation or any collateral security
      therefor, any agreement to provide funds (by means of loans, capital
      contributions or otherwise) to such other Person, any agreement to support
      the solvency or level of any balance sheet item of such other Person or
      any "keep-well" or other arrangement of whatever nature given for the
      purpose of assuring or holding harmless such obligee against loss with
      respect to any obligation of such other Person; provided, however, that
      the term Guaranty Obligation shall not include (a) endorsements of
      instruments for deposit or collection in the ordinary course of business
      or (b) obligations of Borrower or any of its Subsidiaries under electric
      power supply contracts in existence on the Reference Date to make minimum
      payments to suppliers of electric power in the event that Borrower or its
      Subsidiary terminates such a power supply contract. The amount of any
      Guaranty Obligation shall be deemed to be an amount equal to the stated or
      determinable amount of the related Indebtedness (unless the Guaranty
      Obligation is limited by its terms to a lesser amount, in which case to
      the extent of such amount) or, if not stated or determinable, the maximum
      reasonably anticipated liability in respect thereof as determined by the
      Person in good faith.

            "Hazardous Materials" means substances defined as "hazardous
      substances" pursuant to the Comprehensive Environmental Response,
      Compensation and Liability Act of 1980, 42 U.S.C. ' 9601 et seq., or as
      "hazardous", "toxic" or "pollutant" substances or as "solid waste"
      pursuant to the Hazardous Materials Transportation Act, 49 U.S.C. '
      1801, et seq., the Resource Conservation and Recovery Act, 42 U.S.C. '
      6901, et seq., or as "friable asbestos" pursuant to the Toxic
      Substances Control Act, 15 U.S.C. ' 2601 et seq. or any other
      applicable Hazardous Materials Law, in each case as such Laws are
      amended from time to time.

                                      -9-
<PAGE>   15

            "Hazardous Materials Laws" means all Laws governing the treatment,
      transportation or disposal of Hazardous Materials applicable to any of the
      Real Property.

            "Inactive Subsidiary" means a Subsidiary of Borrower that holds
      total assets of $1,000,000 or less.

            "Indebtedness" means, as to any Person (without duplication), (a)
      indebtedness of such Person for borrowed money or for the deferred
      purchase price of Property (excluding trade and other accounts payable in
      the ordinary course of business in accordance with ordinary trade terms),
      including any Guaranty Obligation for any such indebtedness, (b)
      indebtedness of such Person of the nature described in clause (a) that is
      non-recourse to the credit of such Person but is secured by assets of such
      Person, to the extent of the fair market value of such assets as
      determined in good faith by such Person, (c) Capital Lease Obligations of
      such Person, (d) indebtedness of such Person arising under bankers'
      acceptance facilities or under facilities for the discount of accounts
      receivable of such Person, (e) any direct or contingent obligations of
      such Person under letters of credit issued for the account of such Person
      and (f) the obligations of such Person under any series of Disqualified
      Stock.

            "Investment" means, when used in connection with any Person, any
      investment by or of that Person, whether by means of purchase or other
      acquisition of stock or other securities of any other Person or by means
      of a loan, advance creating a debt, capital contribution, guaranty or
      other debt or equity participation or interest in any other Person,
      including any partnership and joint venture interests of such Person. The
      amount of any Investment shall be the amount actually invested (minus any
      return of capital with respect to such Investment which has actually been
      received in Cash or has been converted into Cash), without adjustment for
      subsequent increases or decreases in the value of such Investment.

            "Laws" means, collectively, all international, foreign, federal,
      state and local statutes, treaties, rules, regulations, ordinances, codes
      and administrative or judicial precedents.

            "Lead Arranger" means Banc of America Securities LLC.

            "Lender" means each lender whose name is set forth in the signature
      pages of this Agreement and each lender which may hereafter become a party
      to this Agreement pursuant to Section 11.8.

            "Lien" means any mortgage, deed of trust, pledge, hypothecation,
      assignment for security, security interest, encumbrance, lien or charge of
      any kind, whether voluntarily incurred or arising by operation of Law or
      otherwise, affecting any Property, including any conditional sale or other
      title retention agreement, any lease in the nature of a security interest,
      and/or the filing of any financing statement (other than a precautionary
      financing statement with respect to a lease that is not in the nature of a
      security interest) under the Uniform Commercial Code or comparable Law of
      any jurisdiction with respect to any Property.

            "Loan" means the aggregate of the Advances made at any one time by
      the Lenders pursuant to Section 2.1.

            "Loan Documents" means, collectively, this Agreement, the Notes, the
      Subsidiary Guaranty, and any other agreements of any type or nature
      hereafter executed and delivered by Borrower or any of the Subsidiary
      Guarantors to the Administrative Agent or to any Lender in any way
      relating to or in furtherance of this Agreement, in each case either as
      originally executed or as the same may from time

                                      -10-
<PAGE>   16

      to time be supplemented, modified, amended, restated, extended or
      supplanted.

            "Margin Stock" means "margin stock" as such term is defined in
      Regulation U.

            "Material Adverse Effect" means any set of circumstances or events
      which (a) has had or could reasonably be expected to have any material
      adverse effect whatsoever upon the validity or enforceability of any Loan
      Document, (b) has been or could reasonably be expected to be material and
      adverse to the business or condition (financial or otherwise) of Borrower
      and its Subsidiaries, taken as a whole or (c) has materially impaired or
      could reasonably be expected to materially impair the ability of Borrower
      to perform the Obligations.

            "Maturity Date" means the date that is 60 days after the Closing
      Date.

            "Multiemployer Plan" means any employee benefit plan of the type
      described in Section 4001(a)(3) of ERISA to which Borrower or any of its
      ERISA Affiliates contributes or is obligated to contribute.

            "Negative Pledge" means a Contractual Obligation which contains a
      covenant binding on Borrower or any of its Subsidiaries that prohibits
      Liens on any of its Property, other than (a) any such covenant contained
      in a Contractual Obligation granting or relating to a particular Lien
      which affects only the Property that is the subject of such Lien and (b)
      any such covenant that does not apply to Liens securing the Obligations.

            "Net Cash Sales Proceeds" means, with respect to any Disposition,
      the sum of (a) the Cash proceeds received by or for the account of
      Borrower and its Subsidiaries from such Disposition plus (b) the amount of
      Cash received by or for the account of Borrower and its Subsidiaries upon
      the sale, collection or other liquidation of any proceeds that are not
      Cash from such Disposition, in each case net of (i) any amount required to
      be paid to any Person owning an interest in the assets disposed of, (ii)
      any amount applied to the repayment of Indebtedness secured by a Lien
      permitted under Section 6.7 on the asset disposed of, (iii) any transfer,
      income or other taxes payable as a result of such Disposition, (iv)
      professional fees and expenses, fees due to any Governmental Agency,
      broker's commissions and other out-of-pocket costs of sale actually paid
      to any Person that is not an Affiliate of Borrower attributable to such
      Disposition and (v) any reserves established in accordance with GAAP in
      connection with such Disposition.

            "Net Income" means, with respect to any fiscal period, the
      consolidated net income of Borrower and its Subsidiaries for that period,
      determined in accordance with GAAP, consistently applied.

            "Note" means any of the promissory notes made by Borrower to a
      Lender evidencing Advances under that Lender's Pro Rata Share of the
      Commitment, substantially in the form of Exhibit C, either as originally
      executed or as the same may from time to time be supplemented, modified,
      amended, renewed, extended or supplanted.

            "Obligations" means all present and future obligations of every kind
      or nature of Borrower or any of the Subsidiary Guarantors at any time and
      from time to time owed to the Administrative Agent or the Lenders or any
      one or more of them, under any one or more of the Loan Documents, whether
      due or to become due, matured or unmatured, liquidated or unliquidated, or
      contingent or noncontingent, including obligations of performance as well
      as obligations of payment, and including interest

                                      -11-
<PAGE>   17

      that accrues after the commencement of any proceeding under any Debtor
      Relief Law by or against Borrower or any of the Subsidiary Guarantors.

            "Opinion of Counsel" means the favorable written legal opinion of
      Skadden, Arps, Slate, Meagher & Flom, LLP, special counsel to Borrower,
      substantially in the form of Exhibit D, together with copies of all
      factual certificates and legal opinions delivered to such counsel in
      connection with such opinion upon which such counsel has relied.

            "Original Loan Agreement" means the Revolving Loan Agreement dated
      as of July 27, 1999 by and among Borrower, the Lenders party thereto,
      First Union National Bank, as Syndication Agent, Wachovia Bank, National
      Association, as Documentation Agent, Bank of America, N.A., as
      Administrative Agent, pursuant to which certain of the Lenders agreed to
      make revolving loans to Borrower in the original aggregate principal
      amount of up to $150,000,000, as such Original Loan Agreement existed
      immediately prior to the effectiveness of this Agreement.

            "Other Loan Agreement" means that certain Revolving Loan Agreement
      dated as of July 28, 1998 among Borrower, the lenders party thereto and
      Bank of America National Trust and Savings Association, as administrative
      agent, as amended or revised from time to time in accordance with its
      terms.

            "Party" means any Person other than the Administrative Agent and the
      Lenders, which now or hereafter is a party to any of the Loan Documents.

            "PBGC" means the Pension Benefit Guaranty Corporation or any
      successor thereof established under ERISA.

            "Pension Plan" means any "employee pension benefit plan" (as such
      term is defined in Section 3(2) of ERISA), other than a Multiemployer
      Plan, which is subject to Title IV of ERISA and is maintained by Borrower.

            "Permitted Encumbrances" means:

                  (a) Inchoate Liens incident to construction on or maintenance
        of Property; or Liens incident to construction on or maintenance of
        Property now or hereafter filed of record for which adequate reserves
        have been set aside (or deposits made pursuant to applicable Law) and
        which are being contested in good faith by appropriate proceedings and
        have not proceeded to judgment, provided that, by reason of nonpayment
        of the obligations secured by such Liens, no such Property is subject
        to a material impending risk of loss or forfeiture;

                  (b) Liens for taxes and assessments on Property which are not
      yet past due; or Liens for taxes and assessments on Property for which
      adequate reserves have been set aside and are being contested in good
      faith by appropriate proceedings and have not proceeded to judgment,
      provided that, by reason of nonpayment of the obligations secured by such
      Liens, no such Property is subject to a material impending risk of loss or
      forfeiture;

                  (c) defects and irregularities in title to any Property which
      in the aggregate do not materially impair the fair market value or use of
      the Property for the purposes for which it is or may reasonably be
      expected to be held;

                                      -12-
<PAGE>   18

                  (d) easements, exceptions, reservations, or other agreements
      for the purpose of pipelines, conduits, cables, wire communication lines,
      power lines and substations, streets, trails, walkways, drainage,
      irrigation, water, and sewerage purposes, dikes, canals, ditches, the
      removal of oil, gas, coal, or other minerals, and other like purposes
      affecting Property which in the aggregate do not materially burden or
      impair the fair market value or use of such Property for the purposes for
      which it is or may reasonably be expected to be held;

                  (e) easements, exceptions, reservations, or other agreements
      for the purpose of facilitating the joint or common use of Property in or
      adjacent to a shopping center or similar project affecting Property which
      in the aggregate do not materially burden or impair the fair market value
      or use of such Property for the purposes for which it is or may reasonably
      be expected to be held;

                  (f) rights reserved to or vested in any Governmental Agency to
      control or regulate, or obligations or duties to any Governmental Agency
      with respect to, the use of any Property;

                  (g) rights reserved to or vested in any Governmental Agency to
      control or regulate, or obligations or duties to any Governmental Agency
      with respect to, any right, power, franchise, grant, license, or permit;

                  (h) present or future zoning laws and ordinances or other laws
      and ordinances restricting the occupancy, use, or enjoyment of Property;

                  (i) statutory Liens, other than those described in clauses (a)
      or (b) above, arising in the ordinary course of business with respect to
      obligations which are not delinquent or are being contested in good faith,
      provided that, if delinquent, adequate reserves have been set aside with
      respect thereto and, by reason of nonpayment, no Property is subject to a
      material impending risk of loss or forfeiture;

                  (j) covenants, conditions, and restrictions affecting the use
      of Property which in the aggregate do not materially impair the fair
      market value or use of the Property for the purposes for which it is or
      may reasonably be expected to be held;

                  (k) rights of tenants under leases and rental agreements
      covering Property entered into in the ordinary course of business of the
      Person owning such Property;

                  (l) Liens consisting of pledges or deposits to secure
      obligations under workers' compensation laws or similar legislation,
      including Liens of judgments thereunder which are not currently
      dischargeable;

                  (m) Liens consisting of pledges or deposits of Property to
      secure performance in connection with operating leases made in the
      ordinary course of business, provided the aggregate value of all such
      pledges and deposits in connection with any such lease does not at any
      time exceed 20% of the annual fixed rentals payable under such lease;

                  (n) Liens consisting of deposits of Property to secure bids
      made with respect to, or performance of, contracts (other than contracts
      creating or evidencing an extension of credit to the depositor);

                                      -13-
<PAGE>   19

                  (o) Liens consisting of any right of offset, or statutory
      bankers' lien, on bank deposit accounts maintained in the ordinary course
      of business so long as such bank deposit accounts are not established or
      maintained for the purpose of providing such right of offset or bankers'
      lien;

                  (p) Liens consisting of deposits of Property to secure
      statutory obligations of Borrower;

                  (q) Liens consisting of deposits of Property to secure (or in
      lieu of) surety, appeal or customs bonds;

                  (r) Liens created by or resulting from any litigation or legal
      proceeding in the ordinary course of business which is currently being
      contested in good faith by appropriate proceedings, provided that,
      adequate reserves have been set aside and no material Property is subject
      to a material impending risk of loss or forfeiture; and

                  (s) other non-consensual Liens incurred in the ordinary course
      of business but not in connection with the incurrence of any Indebtedness,
      which do not in the aggregate, when taken together with all other Liens,
      materially impair the fair market value or use of the Property for the
      purposes for which it is or may reasonably be expected to be held.

            "Permitted Right of Others" means a Right of Others consisting of
      (a) an interest (other than a legal or equitable co-ownership interest, an
      option or right to acquire a legal or equitable co-ownership interest and
      any interest of a ground lessor under a ground lease), that does not
      materially impair the fair market value or use of Property for the
      purposes for which it is or may reasonably be expected to be held, (b) an
      option or right to acquire a Lien that would be a Permitted Encumbrance,
      (c) the subordination of a lease or sublease in favor of a financing
      entity and (d) a license, or similar right, of or to intangible assets
      granted in the ordinary course of business.

            "Person" means any individual or entity, including a trustee,
      corporation, limited liability company, general partnership, limited
      partnership, joint stock company, trust, estate, unincorporated
      organization, business association, firm, joint venture, Governmental
      Agency, or other entity.

            "Pre-Existing Loan Documents" mean the Original Loan Agreement and
      the Pre-Existing Notes and the Subsidiary Guaranty delivered thereunder,
      as existing immediately prior to the effectiveness of this Agreement.

            "Pre-Existing Notes" means those certain promissory notes delivered
      under the Original Loan Agreement, as existing immediately prior to the
      effectiveness of this Agreement.

            "Predecessor" means United States Enrichment Corporation, a
      wholly-owned United States Government corporation.

            "Prime Rate" means the rate of interest publicly announced from time
      to time by Bank of America as its "prime rate." It is a rate set by Bank
      of America based upon various factors including Bank of America's costs
      and desired return, general economic conditions and other factors, and is
      used as a reference point for pricing some loans, which may be priced at,
      above, or below such announced rate. Any change in the Prime Rate
      announced by Bank of America shall take effect at the opening of business
      on the day specified in the public announcement of such change.

                                      -14-
<PAGE>   20

            "Privatization" means the transfer on the Reference Date of
      ownership of Predecessor from the United States Government to private
      investors, as described in the Registration Statement, pursuant to the
      USEC Privatization Act (Public Law 104-134), the Energy Policy Act (Public
      Law 102-486) and other applicable Laws.

            "Property" means any interest in any kind of property or asset,
      whether real, personal or mixed, or tangible or intangible.

            "Pro Rata Share" means, with respect to each Lender, the percentage
      of the Commitment set forth opposite the name of that Lender on Schedule
      1.1, as such percentage may be increased or decreased pursuant to a
      Commitment Assignment and Acceptance executed in accordance with Section
      11.8.

            "Quarterly Payment Date" means each June 30, September 30, December
      31 and March 31.

            "Real Property" means, as of any date of determination, all real
      property then or theretofore owned, leased or occupied by any of Borrower.

            "Reference Date" means July 28, 1998.

            "Registration Statement" means the registration statement on Form
      S-1 filed by Borrower on or about June 29, 1998 with the Securities and
      Exchange Commission, in the form in which it became effective under the
      Securities Act of 1933, as amended.

            "Regulation D" means Regulation D, as at any time amended, of the
      Board of Governors of the Federal Reserve System, or any other regulation
      in substance substituted therefor.

            "Regulation U" means Regulation U, as at any time amended, of the
      Board of Governors of the Federal Reserve System, or any other regulation
      in substance substituted therefor.

            "Request for Loan" means a written request for a Loan substantially
      in the form of Exhibit E, signed by a Responsible Official of Borrower, on
      behalf of Borrower, and properly completed to provide all information
      required to be included therein.

            "Requirement of Law" means, as to any Person, the articles or
      certificate of incorporation and by-laws or other organizational or
      governing documents of such Person, and any Law, or judgment, award,
      decree, writ or determination of a Governmental Agency, in each case
      applicable to or binding upon such Person or any of its Property or to
      which such Person or any of its Property is subject.

            "Requisite Lenders" means (a) as of any date of determination if the
      Commitment is then in effect, Lenders having in the aggregate 51% or more
      of the Commitment then in effect and (b) as of any date of determination
      if the Commitment has then been suspended or terminated and there is then
      any Indebtedness evidenced by the Notes, Lenders holding Notes evidencing
      in the aggregate 51% or more of the aggregate Indebtedness then evidenced
      by the Notes.

            "Responsible Official" means (a) any Senior Officer of Borrower and
      (b) any other responsible official of Borrower so designated in a written
      notice thereof from a Senior Officer to the Administrative Agent. The
      Lenders shall be entitled to conclusively rely upon any document or

                                      -15-
<PAGE>   21

      certificate that is signed or executed by a Responsible Official of
      Borrower or any of its Subsidiaries as having been authorized by all
      necessary corporate, partnership and/or other action on the part of
      Borrower or such Subsidiary.

            "Right of Others" means, as to any Property in which a Person has an
      interest, any legal or equitable right, title or other interest (other
      than a Lien) held by any other Person in that Property, and any option or
      right held by any other Person to acquire any such right, title or other
      interest in that Property, including any option or right to acquire a
      Lien; provided, however, that (a) no covenant restricting the use or
      disposition of Property of such Person contained in any Contractual
      Obligation of such Person and (b) no provision contained in a contract
      creating a right of payment or performance in favor of a Person that
      conditions, limits, restricts, diminishes, transfers or terminates such
      right shall be deemed to constitute a Right of Others.

            "Senior Officer" means (a) the chief executive officer, (b) the
      president, (c) any executive vice president, (d) the chief financial
      officer or (e) the treasurer, in each case of Borrower.

            "Solvent" means, with respect to a Person, that (a) the fair market
      value of the Person's assets will be in excess of the amount that will be
      required to be paid on or in respect of the existing debts and other
      liabilities (including contingent liabilities) of the Person as they
      mature, (b) the Person does not have unreasonably small capital to carry
      on its business as conducted or as proposed to be conducted, (c) the
      Person does not intend to or believe that it will incur debts beyond its
      ability to pay such debts as they mature, taking into account the timing
      and amounts of Cash to be received by it and the amounts to be payable on
      or in respect of its obligations, (d) the Person does not intend to
      hinder, delay or defraud either present or future creditors and (e) the
      Person has received fair consideration and reasonably equivalent value in
      exchange for incurring its Obligations under the Loan Documents.

            "Special Eurodollar Circumstance" means the application or adoption
      after the Closing Date of any Law or interpretation, or any change therein
      or thereof, or any change in the interpretation or administration thereof
      by any Governmental Agency, central bank or comparable authority charged
      with the interpretation or administration thereof, or compliance by any
      Lender or its Eurodollar Lending Office with any request or directive
      (whether or not having the force of Law) of any such Governmental Agency,
      central bank or comparable authority.

            "Stockholders' Equity" means, as of any date of determination and
      with respect to any Person, the consolidated stockholders' equity of the
      Person as of that date determined in accordance with GAAP; provided that
      there shall be excluded from Stockholders' Equity any amount attributable
      to Disqualified Stock.

            "Subsidiary" means, as of any date of determination and with respect
      to any Person, any corporation, limited liability company or partnership
      (whether or not, in any case, characterized as such or as a "joint
      venture"), whether now existing or hereafter organized or acquired: (a) in
      the case of a corporation or limited liability company, of which a
      majority of the securities having ordinary voting power for the election
      of directors or other governing body (other than securities having such
      power only by reason of the happening of a contingency) are at the time
      beneficially owned by such Person and/or one or more Subsidiaries of such
      Person, or (b) in the case of a partnership, of which a majority of the
      partnership or other ownership interests are at the time beneficially
      owned by such Person and/or one or more of its Subsidiaries.

                                      -16-
<PAGE>   22
            "Subsidiary Guarantors" means (a) USEC (Delaware) and (b) each other
      Subsidiary of Borrower that is not an Inactive Subsidiary.

            "Subsidiary Guaranty" means the continuing guaranty of the
      Obligations to be executed and delivered pursuant to Article 8 by the
      Subsidiary Guarantors, in the form of Exhibit F, either as originally
      executed or as it may from time to time be supplemented, modified,
      amended, extended or supplanted.

            "Syndication Agent" means First Union National Bank. The Syndication
      Agent shall have no rights, duties, obligations or responsibilities beyond
      those of a Lender.

            "Total Capitalization" means, as of any date of determination, the
      sum of (a) the Stockholders' Equity of Borrower and its Subsidiaries on
      that date plus (b) all Indebtedness of Borrower and its Subsidiaries on
      that date.

            "to the best knowledge of" means, when modifying a representation,
      warranty or other statement of any Person, that the fact or situation
      described therein is known by the Person (or, in the case of a Person
      other than a natural Person, known by a Responsible Official of that
      Person) making the representation, warranty or other statement, or with
      the exercise of reasonable due diligence under the circumstances (in
      accordance with the standard of what a reasonable Person in similar
      circumstances would have done) would have been known by the Person (or, in
      the case of a Person other than a natural Person, would have been known by
      a Responsible Official of that Person).

            "type", when used with respect to any Loan or Advance, means the
      designation of whether such Loan or Advance is an Base Rate Loan or
      Advance, or a Eurodollar Rate Loan or Advance.

            "USEC (Delaware)" means United States Enrichment Corporation, a
      Delaware corporation, which corporation on the Reference Date (a) became a
      Wholly-Owned Subsidiary of Borrower and (b) succeeded by merger to all or
      substantially all of the assets of Predecessor (other than assets to be
      transferred to the United States Government pursuant to the
      Privatization). When used with respect to periods prior to the Reference
      Date, the term "USEC (Delaware)" shall include Predecessor unless the
      context clearly otherwise requires.

            "Wholly-Owned Subsidiary" means a Subsidiary of Borrower, 100% of
      the capital stock or other equity interest of which is owned, directly or
      indirectly, by Borrower, except for director's qualifying shares required
      by applicable Laws.

            1.2 Use of Defined Terms. Any defined term used in the plural shall
refer to all members of the relevant class, and any defined term used in the
singular shall refer to any one or more of the members of the relevant class.

            1.3 Accounting Terms. All accounting terms not specifically defined
in this Agreement shall be construed in conformity with, and all financial data
required to be submitted by this Agreement shall be prepared in conformity with,
GAAP applied on a consistent basis, except as otherwise specifically prescribed
herein. In the event that GAAP changes during the term of this Agreement such
that the covenants contained in Sections 6.9 and 6.10 would then be calculated
in a different manner or with different components, (a) Borrower and the Lenders
agree to amend this Agreement in such respects as are necessary to conform those
covenants as criteria for evaluating Borrower's financial condition to
substantially the same criteria as were effective prior to such change in GAAP
and (b) Borrower shall be deemed to be in compliance with the covenants
contained in

                                      -17-
<PAGE>   23

the aforesaid Sections if and to the extent that Borrower would have been in
compliance therewith under GAAP as in effect immediately prior to such change,
but shall have the obligation to deliver each of the materials described in
Article 7 to the Administrative Agent and the Lenders, on the dates therein
specified, with financial data presented in a manner which conforms with GAAP as
in effect immediately prior to such change.

            1.4 Rounding. Any financial ratios required to be maintained by
Borrower pursuant to this Agreement shall be calculated by dividing the
appropriate component by the other component, carrying the result to one place
more than the number of places by which such ratio is expressed in this
Agreement and rounding the result up or down to the nearest number (with a
round-up if there is no nearest number) to the number of places by which such
ratio is expressed in this Agreement.

            1.5 Exhibits and Schedules. All Exhibits and Schedules to this
Agreement, either as originally existing or as the same may from time to time be
supplemented, modified or amended, are incorporated herein by this reference. A
matter disclosed on any Schedule shall be deemed disclosed on all Schedules.

            1.6 References to "Borrower and its Subsidiaries". Any reference
herein to "Borrower and its Subsidiaries" or the like shall refer solely to
Borrower during such times, if any, as Borrower shall have no Subsidiaries.

            1.7 Miscellaneous Terms. The term "or" is disjunctive; the term
"and" is conjunctive. The term "shall" is mandatory; the term "may" is
permissive. Masculine terms also apply to females; feminine terms also apply to
males. The term "including" is by way of example and not limitation.

                                      -18-
<PAGE>   24
                                    Article 2
                                      LOANS

            2.1 Loans-General.

                (a) Subject to the terms and conditions set forth in this
Agreement, at any time and from time to time commencing on the Closing Date
through the Maturity Date, each Lender shall, pro rata according to that
Lender's Pro Rata Share of the then applicable Commitment, make Advances to
Borrower under the Commitment in such amounts as Borrower may request that do
not result in the aggregate principal amount outstanding under the Notes to
exceed the Commitment. Subject to the limitations set forth herein, Borrower may
borrow, repay and reborrow under the Commitment without premium or penalty.

                (b) [Intentionally Omitted.]

                (c) [Intentionally Omitted.]

                (d) Each Loan shall be made pursuant to a Request for Loan which
shall specify the requested (i) date of such Loan, (ii) type of Loan, (iii)
amount of such Loan, and (iv) in the case of a Eurodollar Rate Loan, the
Eurodollar Period for such Loan.

                (e) Promptly following receipt of a Request for Loan, the
Administrative Agent shall notify each Lender by telecopier of the date and type
of the Loan, the applicable Eurodollar Period, and that Lender's Pro Rata Share
of the Loan. Not later than 10:00 a.m., California time, on the date specified
for any Loan (which must be a Banking Day), each Lender shall make its Pro Rata
Share of the Loan in immediately available funds available to the Administrative
Agent at the Administrative Agent's Office. Upon satisfaction or waiver of the
applicable conditions set forth in Article 8, all Advances shall be made
available to Borrower on that date by such means as it may request in
immediately available funds.

                (f) Unless the Requisite Lenders otherwise consent, each Base
Rate Loan shall be not less than $1,000,000 and in an integral multiple of
$1,000,000 and each Eurodollar Rate Loan shall be not less than $5,000,000 and
in an integral multiple of $1,000,000.

                (g) [Intentionally Omitted].

                (h) The Advances made by each Lender under the Commitment shall
be evidenced by that Lender's Note.

                (i) A Request for Loan shall be irrevocable upon the
Administrative Agent's first notification thereof.

                (j) If no Request for Loan has been made within the requisite
notice periods set forth in Section 2.2 or 2.3 prior to the end of the
Eurodollar Period for any outstanding Eurodollar Rate Loan, then on the last day
of such Eurodollar Period, such Eurodollar Rate Loan shall be automatically
converted into a Base Rate Loan in the same amount.

                                      -19-
<PAGE>   25

            2.2 Base Rate Loans. Each request by Borrower for a Base Rate Loan
shall be made pursuant to a Request for Loan received by the Administrative
Agent, at the Administrative Agent's Office, not later than 11:00 a.m.
California time, on the date (which must be a Banking Day) immediately prior to
the date of the requested Base Rate Loan (except in the case of Base Rate Loans
made on the Closing Date for which the Request for Loan may be delivered on the
Closing Date). All Loans shall constitute Base Rate Loans unless properly
designated as a Eurodollar Rate Loan pursuant to Section 2.3.

            2.3 Eurodollar Rate Loans. Each request by Borrower for a Eurodollar
Rate Loan shall be made pursuant to a Request for Loan received by the
Administrative Agent, at the Administrative Agent's Office, not later than 9:00
a.m., California time, at least three (3) Eurodollar Banking Days before the
first day of the applicable Eurodollar Period.

                (a) On the date which is two (2) Eurodollar Banking Days before
      the first day of the applicable Eurodollar Period, the Administrative
      Agent shall confirm its determination of the applicable Eurodollar Rate
      (which determination shall be conclusive in the absence of manifest
      error) and promptly shall give notice of the same to Borrower and the
      Lenders by telecopier.

                (b) Unless the Administrative Agent and the Requisite Lenders
      otherwise consent, no more than ten (10) Eurodollar Rate Loans shall be
      outstanding at any one time.

                (c) No Eurodollar Rate Loan may be requested during the
      continuation of a Default or Event of Default.

                (d) Nothing contained herein shall require any Lender to fund
      any Eurodollar Rate Advance in the Designated Eurodollar Market.

            2.4 [Intentionally Omitted].

            2.5 [Intentionally Omitted].

            2.6 Voluntary Reduction of Commitment. Borrower shall have the
right, at any time and from time to time, without penalty or charge, upon at
least five (5) Banking Days' prior written notice by a Responsible Official of
Borrower to the Administrative Agent, voluntarily to reduce, permanently and
irrevocably, in aggregate principal amounts in an integral multiple of
$1,000,000 but not less than $5,000,000, or to terminate, all or a portion of
the then undisbursed portion of the Commitment. The Administrative Agent shall
promptly notify the Lenders of any reduction or termination of the Commitment
under this Section.

            2.7 [Intentionally Omitted].

            2.8 Optional Termination of Commitment. Following the occurrence of
a Change in Control, the Requisite Lenders may in their sole and absolute
discretion elect, during the thirty (30) day period immediately subsequent to
the later of (a) such occurrence or (b) the earlier of (i) receipt of Borrower's
written notice to the Administrative Agent of such occurrence or (ii) if no such
notice has been received by the Administrative Agent, the date upon which the
Administrative Agent has actual knowledge thereof, to terminate the Commitment,
in which case the Commitment shall be terminated, and all outstanding Loans
shall be repaid, effective on the date which is thirty (30) days subsequent to
written notice from the Administrative Agent to Borrower thereof.

                                      -20-
<PAGE>   26

            2.9 Administrative Agent's Right to Assume Funds Available for
Advances. Unless the Administrative Agent shall have been notified by any Lender
no later than 10:00 a.m. on the Banking Day of the proposed funding by the
Administrative Agent of any Loan that such Lender does not intend to make
available to the Administrative Agent such Lender's portion of the total amount
of such Loan, the Administrative Agent may assume that such Lender has made such
amount available to the Administrative Agent on the date of the Loan and the
Administrative Agent may, in reliance upon such assumption, make available to
Borrower a corresponding amount. If the Administrative Agent has made funds
available to Borrower based on such assumption and such corresponding amount is
not in fact made available to the Administrative Agent by such Lender, the
Administrative Agent shall be entitled to recover such corresponding amount on
demand from such Lender. If such Lender does not pay such corresponding amount
forthwith upon the Administrative Agent's demand therefor, the Administrative
Agent promptly shall notify Borrower and Borrower shall pay such corresponding
amount to the Administrative Agent. The Administrative Agent also shall be
entitled to recover from such Lender interest on such corresponding amount in
respect of each day from the date such corresponding amount was made available
by the Administrative Agent to Borrower to the date such corresponding amount is
recovered by the Administrative Agent, at a rate per annum equal to the daily
Federal Funds Rate. Nothing herein shall be deemed to relieve any Lender from
its obligation to fulfill its share of the Commitment or to prejudice any rights
which the Administrative Agent or Borrower may have against any Lender as a
result of any default by such Lender hereunder.

            2.10  Guaranty.  The Obligations shall be guaranteed by the
Subsidiary Guarantors pursuant to the Subsidiary Guaranty.

            2.11 Adjusting Purchase Payments. Principal amounts outstanding
under the Commitment of the Original Loan Agreement on the effective date of
this Agreement (the "Carryover Principal Balance") remain outstanding under the
Commitment hereunder. Concurrently with the effectiveness of this Agreement and
the making of the initial Loan as provided in Section 8.1, the Lenders agree to
purchase and sell undivided interests in the Carryover Principal Balance by
making or receiving Adjusting Purchase Payments as specified in Schedule 2.11
(the "Adjusting Purchase Payment(s)") so that the Carryover Principal Balance
will be properly allocated and owing to the Lenders under the Notes in
accordance with the Pro-Rata Shares specified in Schedule 1.1. Each Lender
making an Adjusting Purchase Payment shall deliver it to the Administrative
Agent together with its funding of its initial Advance, and the Administrative
Agent shall forward such Adjusting Purchase Payments to the Lenders entitled
thereto promptly after receipt in accordance with the allocations specified in
Schedule 2.11. On the effective date of this Agreement, in addition to any other
Advances that may be made, each Lender shall be deemed as having made an Advance
in the amount of its Pro-Rata Share of the Carryover Principal Balance.

                                      -21-
<PAGE>   27

                                    Article 3
                                PAYMENTS AND FEES

            3.1  Principal and Interest.

                 (a) Interest shall be payable on the outstanding daily unpaid
       principal amount of each Advance from the date thereof until payment in
       full is made and shall accrue and be payable at the rates set forth or
       provided for herein before and after Default, before and after maturity,
       before and after judgment, and before and after the commencement of any
       proceeding under any Debtor Relief Law, with interest on overdue interest
       at the Default Rate to the fullest extent permitted by applicable Laws.

                 (b) Interest accrued on each Base Rate Loan shall be due and
       payable on each Quarterly Payment Date. Except as otherwise provided in
       Section 3.9, the unpaid principal amount of any Base Rate Loan shall bear
       interest at a fluctuating rate per annum equal to the Base Rate. Each
       change in the interest rate under this Section 3.1(b) due to a change in
       the Base Rate shall take effect simultaneously with the corresponding
       change in the Base Rate.

                 (c) Interest accrued on each Eurodollar Rate Loan which is for
       a term of three months or less shall be due and payable on the last day
       of the related Eurodollar Period. Interest accrued on each other
       Eurodollar Rate Loan shall be due and payable on the date which is three
       months after the date such Eurodollar Rate Loan was made and on the last
       day of the related Eurodollar Period. Except as otherwise provided in
       Section 3.9, the unpaid principal amount of any Eurodollar Rate Loan
       shall bear interest at a rate per annum equal to the Eurodollar Rate for
       that Eurodollar Rate Loan plus the Applicable Eurodollar Margin.

                 (d) If not sooner paid, the principal Indebtedness evidenced by
       the Notes shall be payable as follows:

                     (i) the amount, if any, by which the principal Indebtedness
              evidenced by the Notes at any time exceeds the then applicable
              Commitment shall be payable immediately;

                     (ii) [Intentionally Omitted];

                     (iii) [Intentionally Omitted];

                     (iv) [Intentionally Omitted];

                     (v) [Intentionally Omitted];

                     (vi) the principal Indebtedness evidenced by the Notes
              shall be payable on the Maturity Date; and

                     (vii) [Intentionally Omitted]

                 (e) [Intentionally Omitted].

                                      -22-
<PAGE>   28

                 (f) The principal Indebtedness evidenced by the Notes may, at
       any time and from time to time, voluntarily be paid or prepaid in whole
       or in part without premium or penalty, except that with respect to any
       voluntary prepayment under this Subsection, (i) any partial prepayment
       shall be not less than $1,000,000 and shall be an integral multiple of
       $1,000,000, (ii) the Administrative Agent shall have received written
       notice of any prepayment by 9:00 a.m. California time on the date that is
       one (1) Banking Day before the date of prepayment (which must be a
       Banking Day) in the case of an Base Rate Loan, and, in the case of a
       Eurodollar Rate Loan, three (3) Banking Days before the date of
       prepayment, which notice shall identify the date and amount of the
       prepayment and the Loan(s) being prepaid, (iii) each prepayment of
       principal on any Eurodollar Rate Loan shall be accompanied by payment of
       interest accrued to the date of payment on the amount of principal paid
       and (iv) any payment or prepayment of all or any part of any Eurodollar
       Rate Loan on a day other than the last day of the applicable Eurodollar
       Period shall be subject to Section 3.8(e).

            3.2  Arranger and Agency Fees. On the Closing Date and on each other
date upon which a fee is payable, Borrower shall pay to the Lead Arranger and
the Administrative Agent such fees as heretofore agreed upon by letter agreement
between Borrower, the Lead Arranger and the Administrative Agent. The fees paid
to the Lead Arranger and the Administrative Agent are solely for their own
account and are nonrefundable.

            3.3  Facility Fee. Borrower shall pay to the Administrative Agent,
for the ratable accounts of the Lenders pro rata according to their Pro Rata
Share of the Commitment, a facility fee equal to the Applicable Facility Fee
Rate per annum times the Commitment in effect on each day during a Fiscal
Quarter. The facility fee shall be payable quarterly in arrears on each
Quarterly Payment Date.

            3.4  Utilization Fee. Borrower shall pay to the Administrative
Agent, for the ratable accounts of the Lenders pro rata according to their Pro
Rata Share of the Commitment, a utilization fee equal to 0.125% (12.5 basis
points) per annum times the aggregate Indebtedness evidenced by the Notes for
each day (or portion thereof) that such Indebtedness evidenced by the Notes is
in excess of 33-1/3% of the Commitment. The utilization fee shall be payable
quarterly in arrears on each Quarterly Payment Date.

            3.5  [Intentionally Omitted].

            3.6  [Intentionally Omitted].

            3.7  Increased Commitment Costs. If any Lender shall determine in
good faith that the introduction after the Closing Date of any applicable law,
rule, regulation or guideline regarding capital adequacy, or any change therein
or any change in the interpretation or administration thereof by any central
bank or other Governmental Agency charged with the interpretation or
administration thereof, or compliance by such Lender (or its Eurodollar Lending
Office) or any corporation controlling such Lender, with any request, guideline
or directive regarding capital adequacy (whether or not having the force of Law)
of any such central bank or other authority not imposed as a result of such
Lender's or such corporation's failure to comply with any other Laws, affects or
would affect the amount of capital required or expected to be maintained by such
Lender or any corporation controlling such Lender and (taking into consideration
such Lender's or such corporation's policies with respect to capital adequacy
and such Lender's desired return on capital) determines in good faith that the
amount of such capital is increased, or the rate of return on capital is
reduced, as a consequence of its obligations under this Agreement, then, within
five (5) Banking Days after demand of such Lender, Borrower shall pay to such
Lender, from time to time as specified in good faith by such Lender, additional
amounts sufficient to compensate such Lender in light of such circumstances, to
the extent reasonably allocable to such

                                      -23-
<PAGE>   29

obligations under this Agreement, provided that Borrower shall not be obligated
to pay any such amount which arose prior to the date which is ninety (90) days
preceding the date of such demand or is attributable to periods prior to the
date which is ninety (90) days preceding the date of such demand. Each Lender's
determination of such amounts shall be conclusive in the absence of manifest
error.

            3.8  Eurodollar Costs and Related Matters.

                 (a) In the event that any Governmental Agency imposes on any
       Lender any reserve or comparable requirement (including any emergency,
       supplemental or other reserve) with respect to the Eurodollar Obligations
       of that Lender, Borrower shall pay that Lender within five (5) Banking
       Days after demand all amounts necessary to compensate such Lender
       (determined as though such Lender's Eurodollar Lending Office had funded
       100% of its Eurodollar Rate Advance in the Designated Eurodollar Market)
       in respect of the imposition of such reserve requirements (provided, that
       Borrower shall not be obligated to pay any such amount which arose prior
       to the date which is ninety (90) days preceding the date of such demand
       or is attributable to periods prior to the date which is ninety (90) days
       preceding the date of such demand). The Lender's determination of such
       amount shall be conclusive in the absence of manifest error.

                 (b) If, after the date hereof, the existence or occurrence of
       any Special Eurodollar Circumstance:

                     (1) shall subject any Lender or its Eurodollar Lending
              Office to any tax, duty or other charge or cost with respect to
              any Eurodollar Rate Advance, any of its Notes evidencing
              Eurodollar Rate Loans or its obligation to make Eurodollar Rate
              Advances, or shall change the basis of taxation of payments to any
              Lender attributable to the principal of or interest on any
              Eurodollar Rate Advance or any other amounts due under this
              Agreement in respect of any Eurodollar Rate Advance, any of its
              Notes evidencing Eurodollar Rate Loans or its obligation to make
              Eurodollar Rate Advances, excluding (i) taxes imposed on or
              measured in whole or in part by its overall net income by (A) any
              jurisdiction (or political subdivision thereof) in which it is
              organized or maintains its principal office or Eurodollar Lending
              Office or (B) any jurisdiction (or political subdivision thereof)
              in which it is "doing business" and (ii) any withholding taxes or
              other taxes based on gross income imposed by the United States of
              America for any period with respect to which it has failed to
              provide Borrower with the appropriate form or forms required by
              Section 11.21, to the extent such forms are then required by
              applicable Laws;

                     (2) shall impose, modify or deem applicable any reserve not
              applicable or deemed applicable on the date hereof (including any
              reserve imposed by the Board of Governors of the Federal Reserve
              System, special deposit, capital or similar requirements against
              assets of, deposits with or for the account of, or credit extended
              by, any Lender or its Eurodollar Lending Office); or

                     (3) shall impose on any Lender or its Eurodollar Lending
              Office or the Designated Eurodollar Market any other condition
              affecting any Eurodollar Rate Advance, any of its Notes evidencing
              Eurodollar Rate Loans, its obligation to make Eurodollar Rate
              Advances or this Agreement, or shall otherwise affect any of the
              same;

                                      -24-
<PAGE>   30

                     (4) and the result of any of the foregoing, as determined
              in good faith by such Lender, increases the cost to such Lender or
              its Eurodollar Lending Office of making or maintaining any
              Eurodollar Rate Advance or in respect of any Eurodollar Rate
              Advance, any of its Notes evidencing Eurodollar Rate Loans or its
              obligation to make Eurodollar Rate Advances or reduces the amount
              of any sum received or receivable by such Lender or its Eurodollar
              Lending Office with respect to any Eurodollar Rate Advance, any of
              its Notes evidencing Eurodollar Rate Loans or its obligation to
              make Eurodollar Rate Advances (assuming such Lender's Eurodollar
              Lending Office had funded 100% of its Eurodollar Rate Advance in
              the Designated Eurodollar Market), then, within five (5) Banking
              Days after demand by such Lender (with a copy to the
              Administrative Agent), Borrower shall pay to such Lender such
              additional amount or amounts as will compensate such Lender for
              such increased cost or reduction (determined as though such
              Lender's Eurodollar Lending Office had funded 100% of its
              Eurodollar Rate Advance in the Designated Eurodollar Market);
              provided, that Borrower shall not be obligated to pay any such
              amount which arose prior to the date which is ninety (90) days
              preceding the date of such demand or is attributable to periods
              prior to the date which is ninety (90) days preceding the date of
              such demand. A statement of any Lender claiming compensation under
              this subsection shall be conclusive in the absence of manifest
              error.

                 (c) If, after the date hereof, the existence or occurrence
       of any Special Eurodollar Circumstance shall, in the good faith opinion
       of any Lender, make it unlawful or impossible for such Lender or its
       Eurodollar Lending Office to make, maintain or fund its portion of any
       Eurodollar Rate Loan, or materially restrict the authority of such Lender
       to purchase or sell, or to take deposits of, Dollars in the Designated
       Eurodollar Market, or to determine or charge interest rates based upon
       the Eurodollar Rate, and such Lender shall so notify the Administrative
       Agent, then such Lender's obligation to make Eurodollar Rate Advances
       shall be suspended for the duration of such illegality or impossibility
       and the Administrative Agent forthwith shall give notice thereof to the
       other Lenders and Borrower. Upon receipt of such notice, the outstanding
       principal amount of such Lender's Eurodollar Rate Advances, together with
       accrued interest thereon, automatically shall be converted to Base Rate
       Advances on either (1) the last day of the Eurodollar Period(s)
       applicable to such Eurodollar Rate Advances if such Lender may lawfully
       continue to maintain and fund such Eurodollar Rate Advances to such
       day(s) or (2) immediately if such Lender may not lawfully continue to
       fund and maintain such Eurodollar Rate Advances to such day(s), provided
       that in such event the conversion shall not be subject to payment of a
       prepayment fee under Section 3.8(e). Each Lender agrees to endeavor
       promptly to notify Borrower of any event of which it has actual
       knowledge, occurring after the Closing Date, which will cause that Lender
       to notify the Administrative Agent under this Section, and agrees to
       designate a different Eurodollar Lending Office if such designation will
       avoid the need for such notice and will not, in the good faith judgment
       of such Lender, otherwise be materially disadvantageous to such Lender.
       In the event that any Lender is unable, for the reasons set forth above,
       to make, maintain or fund its portion of any Eurodollar Rate Loan, such
       Lender shall fund such amount as an Base Rate Advance for the same period
       of time, and such amount shall be treated in all respects as an Base Rate
       Advance. Any Lender whose obligation to make Eurodollar Rate Advances has
       been suspended under this Section shall promptly notify the
       Administrative Agent and Borrower of the cessation of the Special
       Eurodollar Circumstance which gave rise to such suspension.

                 (d) If, with respect to any proposed Eurodollar Rate Loan:

                     (1) the Administrative Agent reasonably determines that, by
              reason of circumstances affecting the Designated Eurodollar Market
              generally that are beyond the reasonable control of the Lenders,
              deposits in Dollars (in the applicable amounts) are not being

                                      -25-
<PAGE>   31

              offered to any Lender in the Designated Eurodollar Market for the
              applicable Eurodollar Period; or

                          (2) the Requisite Lenders advise the Administrative
              Agent that the Eurodollar Rate as determined by the Administrative
              Agent (i) does not represent the effective pricing to such Lenders
              for deposits in Dollars in the Designated Eurodollar Market in the
              relevant amount for the applicable Eurodollar Period, or (ii) will
              not adequately and fairly reflect the cost to such Lenders of
              making the applicable Eurodollar Rate Advances;

       then the Administrative Agent forthwith shall give notice thereof to
       Borrower and the Lenders, whereupon until the Administrative Agent
       notifies Borrower that the circumstances giving rise to such suspension
       no longer exist, the obligation of the Lenders to make any future
       Eurodollar Rate Advances shall be suspended.

                     (e) Upon payment or prepayment of any Eurodollar Rate
       Advance (other than as the result of a conversion required under Section
       3.8(c) on a day other than the last day in the applicable Eurodollar
       Period (whether voluntarily, involuntarily, by reason of acceleration, or
       otherwise), or upon the failure of Borrower (for a reason other than the
       breach by a Lender of its obligation pursuant to Section 2.1(a) to make
       an Advance) to borrow on the date or in the amount specified for a
       Eurodollar Rate Loan in any Request for Loan, Borrower shall pay to the
       appropriate Lender within five (5) Banking Days after demand a prepayment
       fee or failure to borrow fee, as the case may be (determined as though
       100% of the Eurodollar Rate Advance had been funded in the Designated
       Eurodollar Market) equal to the sum of:

                          (1) $250; plus

                          (2) the amount, if any, by which (i) the additional
            interest would have accrued on the amount prepaid or not borrowed at
            the Eurodollar Rate plus the Applicable Eurodollar Rate Margin if
            that amount had remained or been outstanding through the last day of
            the applicable Eurodollar Period exceeds (ii) the interest that the
            Lender could recover by placing such amount on deposit in the
            Designated Eurodollar Market for a period beginning on the date of
            the prepayment or failure to borrow and ending on the last day of
            the applicable Eurodollar Period (or, if no deposit rate quotation
            is available for such period, for the most comparable period for
            which a deposit rate quotation may be obtained); plus

                          (3) all out-of-pocket expenses incurred by the Lender
            reasonably attributable to such payment, prepayment or failure to
            borrow.

            Each Lender's determination of the amount of any prepayment fee
            payable under this Section shall be conclusive in the absence of
            manifest error.

                 (f) Each Lender agrees to endeavor promptly to notify Borrower
       of any event of which it has actual knowledge, occurring after the
       Closing Date, which will entitle such Lender to compensation pursuant to
       clause (a) or clause (b) of this Section, and agrees to designate a
       different Eurodollar Lending Office if such designation will avoid the
       need for or reduce the amount of such compensation and will not, in the
       good faith judgment of such Lender, otherwise be materially
       disadvantageous to such Lender. Any request for compensation by a Lender
       under this Section shall set forth the basis upon which it has been
       determined that such an amount is due from Borrower, a

                                      -26-
<PAGE>   32

       calculation of the amount due, and a certification that the corresponding
       costs have been incurred by the Lender.

            3.9  Late Payments. If any installment of principal or interest or
any fee or cost or other amount payable under any Loan Document to the
Administrative Agent or any Lender is not paid when due, it shall thereafter
bear interest at a fluctuating interest rate per annum at all times equal to the
sum of the Base Rate plus 2%, to the fullest extent permitted by applicable
Laws. Accrued and unpaid interest on past due amounts (including, without
limitation, interest on past due interest) shall be compounded monthly, on the
last day of each calendar month, to the fullest extent permitted by applicable
Laws.

            3.10 Computation of Interest and Fees. Computation of interest on
Base Rate Loans under this Agreement shall be calculated on the basis of a year
of 365/366 days and the actual number of days elapsed. Computation of interest
on Eurodollar Rate Loans and all fees under this Agreement shall be calculated
on the basis of a year of 360 days and the actual number of days elapsed.
Interest shall accrue on each Loan for the day on which the Loan is made;
interest shall not accrue on a Loan, or any portion thereof, for the day on
which the Loan or such portion is paid. Any Loan that is repaid on the same day
on which it is made shall bear interest for one day. Notwithstanding anything in
this Agreement to the contrary, interest in excess of the maximum amount
permitted by applicable Laws shall not accrue or be payable hereunder or under
the Notes, and any amount paid as interest hereunder or under the Notes which
would otherwise be in excess of such maximum permitted amount shall instead be
treated as a payment of principal.

            3.11 Non-Banking Days. If any payment to be made by Borrower or
any other Party under any Loan Document shall come due on a day other than a
Banking Day, payment shall instead be considered due on the next succeeding
Banking Day and the extension of time shall be reflected in computing interest
and fees.

            3.12  Manner and Treatment of Payments.

                 (a) Each payment hereunder (except payments pursuant to
       Sections 3.7, 3.8, 11.3, 11.11 and 11.22) or on the Notes or under any
       other Loan Document shall be made by Borrower to the Administrative Agent
       without setoff, deduction or counterclaim at the Administrative Agent's
       Office for the account of each of the Lenders or the Administrative
       Agent, as the case may be, in immediately available funds not later than
       11:00 a.m. California time, on the day of payment (which must be a
       Banking Day). All payments received after such time, on any Banking Day,
       shall be deemed received on the next succeeding Banking Day. The amount
       of all payments received by the Administrative Agent for the account of
       each Lender shall be immediately paid by the Administrative Agent to the
       applicable Lender in immediately available funds and, if such payment was
       received by the Administrative Agent by 11:00 a.m., California time, on a
       Banking Day and not so made available to the account of a Lender on that
       Banking Day, the Administrative Agent shall reimburse that Lender for the
       cost to such Lender of funding the amount of such payment at the Federal
       Funds Rate. All payments shall be made in lawful money of the United
       States of America.

                 (b) Each payment or prepayment on account of any Loan shall be
       applied pro rata according to the outstanding Advances made by each
       Lender comprising such Loan.

                 (c) Each Lender shall use its best efforts to keep a record (in
       writing or by an electronic data entry system) of Advances made by it and
       payments received by it with respect to each of its Notes and, subject to
       Section 10.6(g), such record shall, as against Borrower, be presumptive

                                      -27-
<PAGE>   33

evidence of the amounts owing. Notwithstanding the foregoing sentence, the
failure by any Lender to keep such a record shall not affect Borrower's
obligation to pay the Obligations.

                 (d) (i) Any and all payments by Borrower under this Agreement
       shall be made free and clear of and without deduction or withholding for
       any and all present or future taxes, including those taxes
       described in Section 11.3, levies, imposts, deductions, charges or
       withholdings, and all interest, penalties and liabilities with respect
       thereto, imposed by any Governmental Agency, excluding, in the
       case of each Lender and the Administrative Agent, net income taxes or
       branch profits taxes or franchise and excise taxes (to the extent such
       taxes are imposed in lieu of net income taxes), imposed on any Lender or
       the Administrative Agent as a result of a connection between such Lender
       or the Administrative Agent and the jurisdiction of the Governmental
       Agency imposing such tax (other than any such connection
       arising solely from such Lender or the Administrative Agent having
       executed, delivered or performed its obligations or received a payment
       under, or enforced, this Agreement) (all such non-excluded taxes,
       assessments and charges being hereinafter referred to as "Non-Excluded
        Taxes"). If Borrower shall be required by law to deduct or
       withhold any Non-Excluded Taxes from or in respect of any sum
       payable hereunder to any Lender or the Administrative Agent (A) the
       amount payable shall be increased as may be necessary so that after
       making all required deductions or withholdings (including required
       deductions or withholdings for Non-Excluded Taxes applicable to
       additional amounts payable under this Section 3.12(d)) such Lender or the
       Administrative Agent, as the case may be, receives an amount
       equal to the amount it would have received had no such deductions or
       withholdings been made, (B) Borrower shall make such deductions or
       withholdings and (C) Borrower shall pay the full amount deducted or
       withheld to the relevant Governmental Agency in accordance with
       applicable Laws.

                     (ii) Each Lender organized under the Laws of the United
       States of America or a State thereof or the District of Columbia on or
       prior to the execution and delivery of this Agreement (A) shall provide
       each of the Administrative Agent and Borrower with two original and duly
       completed United States Internal Revenue Service Forms W-9, or successor
       applicable form, certifying that such Lender is a United States resident
       and is exempt from United States backup withholding tax, (B) shall
       provide the Administrative Agent and Borrower two further copies of any
       such form or certification from time to time thereafter as requested in
       writing by Borrower and (C) shall obtain such extensions and renewals
       thereof as may reasonably be requested in writing by Borrower or the
       Administrative Agent. Each Person that shall become a participant
       pursuant to Section 11.8 shall, upon the effectiveness of the related
       transfer, be required to provide all of the forms and certifications
       required pursuant to this Section 3.12(d)(ii) as appropriate, as if such
       participant were a Lender; provided that such participant shall furnish
       all such required forms and certifications to the Lender from which the
       related participation was purchased.

                     (iii) Notwithstanding anything else in this Agreement to
       the contrary, for any period with respect to which a Lender has failed to
       comply with the requirements of Section 3.12(d)(ii) or Section 11.21, as
       the case may be, such Lender shall not be entitled to any payment under
       this Section 3.12(d) or to indemnification under Section 3.12(e) with
       respect to Non-Excluded Taxes imposed by reason of such failure;
       provided, however, that should a Lender become subject to Non-Excluded
       Taxes because of its failure to deliver a form required hereunder,
       Borrower shall, at such Lender's expense (including internal costs of
       Borrower), take such steps as such Lender shall reasonably require to
       assist the Lender to recover such Non-Excluded Taxes.

                     (iv) Should any Lender claim a refund, credit or
       deduction from a Governmental Agency to which such Lender would not be
       entitled but for the payment by Borrower of

                                      -28-
<PAGE>   34

       Non-Excluded Taxes as required by this Section 3.12(d), such Lender
       thereupon shall pay the amount of such refund or, in the case of a credit
       or deduction, the amount equal to the amount by which other taxes of such
       Lender are actually reduced, together with any interest paid or allowed
       by the refunding, crediting or deducting Governmental Agency in
       connection with such refund, credit or deduction.

                 (e) Borrower shall indemnify each Lender and the Administrative
       Agent for and hold each of them harmless against the full amount of
       Non-Excluded Taxes (including Non-Excluded Taxes of any kind imposed by a
       Governmental Agency on additional amounts required to be paid pursuant to
       Section 3.12(d)) imposed on or paid by such Lender or the Administrative
       Agent, as the case may be. Each Lender and the Administrative Agent
       hereby agrees to give written notice to Borrower, as appropriate, of the
       assertion of any claim against such Lender or the Agent relating to
       Non-Excluded Taxes as promptly as practicable after such Lender or the
       Administrative Agent has been notified in writing of such assertion. This
       indemnification shall be made within 30 days from the date such Lender or
       the Administrative Agent, as the case may be, provides Borrower, as
       appropriate, with such written notice.

            3.13 Funding Sources. Nothing in this Agreement shall be deemed
to obligate any Lender to obtain the funds for any Loan or Advance in any
particular place or manner or to constitute a representation by any Lender that
it has obtained or will obtain the funds for any Loan or Advance in any
particular place or manner.

            3.14 Failure to Charge Not Subsequent Waiver. Any decision by the
Administrative Agent or any Lender not to require payment of any interest
(including interest arising under Section 3.9), fee, cost or other amount
payable under any Loan Document, or to calculate any amount payable by a
particular method, on any occasion shall in no way limit or be deemed a waiver
of the Administrative Agent's or such Lender's right to require full payment of
any interest (including interest arising under Section 3.9), fee, cost or other
amount payable under any Loan Document, or to calculate an amount payable by
another method that is not inconsistent with this Agreement, on any other or
subsequent occasion.

            3.15 Administrative Agent's Right to Assume Payments Will be
Made. Unless the Administrative Agent shall have been notified by Borrower prior
to the date on which any payment to be made by Borrower hereunder is due that
Borrower does not intend to remit such payment, the Administrative Agent may, in
its discretion, assume that Borrower has remitted such payment when so due and
the Administrative Agent may, in its discretion and in reliance upon such
assumption, make available to each Lender on such payment date an amount equal
to such Lender's share of such assumed payment. If Borrower has not in fact
remitted such payment to the Administrative Agent, each Lender shall forthwith
on demand repay to the Administrative Agent the amount of such assumed payment
made available to such Lender, together with interest thereon in respect of each
day from and including the date such amount was made available by the
Administrative Agent to such Lender to the date such amount is repaid to the
Administrative Agent at the Federal Funds Rate.

            3.16 Fee Determination Detail. The Administrative Agent, and any
Lender, shall provide reasonable detail to Borrower regarding the manner in
which the amount of any payment to the Administrative Agent and the Lenders, or
that Lender, under Article 3 has been determined, concurrently with demand for
such payment.

            3.17 Survivability. All of Borrower's obligations under Sections
3.7 and 3.8 shall survive for the ninety (90) day period following the date on
which the Commitment is terminated and all Loans

                                      -29-
<PAGE>   35

hereunder are fully paid, and Borrower shall remain obligated thereunder for all
claims under such Sections made by any Lender to Borrower prior to the
expiration of such period.

            3.18 Substitution of Lender. If (a) the obligation of any Lender
to make Eurodollar Rate Advances has been suspended for ten (10) Banking Days or
more pursuant to Sections 3.8(c) or 3.8(d) or (b) any Lender has demanded and
been paid compensation of $5,000 or more under Section 3.7 or 3.8, Borrower
shall have the right, with the assistance of the Administrative Agent, to seek a
mutually satisfactory substitute lender or lenders (which may be one or more of
the Lenders or an Eligible Assignee) to replace such Lender. Any substitution
under this Section 3.18 may be accomplished at Borrower's option either (i) by
the replaced Lender assigning its rights and obligations hereunder to the
replacement lender or lenders pursuant to Section 11.8 at a mutually agreeable
price or (ii) by Borrower prepaying all outstanding Advances from the replaced
Lender and terminating its obligations hereunder on a date specified in a notice
delivered to the Administrative Agent and the replaced Lender at least three (3)
Banking Days before the date so specified (and compensating such Lender for any
resulting funding losses as provided in Section 3.8(e)) and concurrently the
replacement lender or lenders assuming a Pro Rata Share of the Commitment in an
amount equal to the Pro Rata Share of the Commitment being terminated and making
Advances in the same aggregate amount and having the same maturity date or
dates, respectively, as the Advances being prepaid, all pursuant to documents
reasonably satisfactory to the Administrative Agent (and in the case of any
document to be signed by the replaced Lender, reasonably satisfactory to such
Lender). Borrower must give written notice to the affected Lender and the
Administrative Agent within sixty (60) days after the applicable event described
in clauses (a) or (b) of the first sentence of this Section of its intent to
exercise its rights under this Section, and must complete the substitution
within thirty (30) days after the date of such notice. No such substitution
shall relieve Borrower of its obligations to compensate and/or indemnify the
replaced Lender as required by Sections 3.7 and 3.8 with respect to the period
before it is replaced and to pay all accrued interest, accrued fees and other
amounts owing the replaced Lender hereunder.

            3.19 Accruals Under Pre-Existing Loan Documents. The accrual of
interest and fees payable by Borrower under the Pre-Existing Loan Documents
shall be calculated as provided therein through the effective date of this
Agreement. Such fees include, without limitation, those specified in Sections
3.2, 3.3 and 3.4 of the Original Loan Agreement. All such accrued interest and
fees through the effective date of this Agreement shall, notwithstanding any
provision of the Pre-Existing Loan Documents or hereunder to the contrary, be
due on the effective date of this Agreement and shall be payable immediately
upon submission of an invoice therefor to Borrower by the Administrative Agent.
Upon receipt by the Administrative Agent, all such amounts shall be promptly
distributed by the Administrative Agent in accordance with the terms of the
Pre-Existing Loan Documents.

                                      -30-
<PAGE>   36

                                    Article 4
                         REPRESENTATIONS AND WARRANTIES

           Borrower represents and warrants to the Lenders that:

            4.1  Existence and Qualification; Power; Compliance With Laws.
Borrower is a corporation duly formed, validly existing and in good standing
under the Laws of Delaware. Borrower is duly qualified or registered to transact
business and is in good standing in Maryland and each other jurisdiction in
which the conduct of its business or the ownership or leasing of its Properties
makes such qualification or registration necessary, except where the failure so
to qualify or register and to be in good standing would not constitute a
Material Adverse Effect. Borrower has all requisite power and authority to
conduct its business, to own and lease its Properties and to execute and deliver
each Loan Document to which it is a Party and to perform its Obligations. All
outstanding shares of capital stock of Borrower are duly authorized, validly
issued, fully paid and non-assessable, and no holder thereof has any enforceable
right of rescission under any applicable state or federal securities Laws.
Borrower is in compliance with all Laws (except for Hazardous Materials Laws
which are the subject of Section 4.18) and other legal requirements applicable
to its business, has obtained all authorizations, consents, approvals, orders,
licenses and permits from, and has accomplished all filings, registrations and
qualifications with, or obtained exemptions from any of the foregoing from, any
Governmental Agency that are necessary for the transaction of its business,
except where the failure so to comply, obtain authorizations, etc., file,
register, qualify or obtain exemptions does not constitute a Material Adverse
Effect.

            4.2  Authority; Compliance With Other Agreements and Instruments
and Government Regulations. The execution, delivery and performance by Borrower
and the Subsidiary Guarantors of the Loan Documents to which it is a Party have
been duly authorized by all necessary corporate action, and do not and will not:

                 (a) Require any consent or approval not heretofore
       obtained of any partner, director, stockholder, security holder or
       creditor of such Party;

                 (b) Violate or conflict with any provision of such Party's
       charter, articles of incorporation or bylaws, as applicable;

                 (c) Result in or require the creation or imposition of any Lien
       (other than pursuant to the Loan Documents) or Right of Others upon or
       with respect to any Property now owned or leased or hereafter acquired by
       such Party;

                 (d) Violate any Requirement of Law applicable to such Party;

                 (e) Result in a breach of or constitute a default under, or
       cause or permit the acceleration of any obligation owed under, any
       material indenture or loan or credit agreement or any other Contractual
       Obligation to which such Party is a party or by which such Party or any
       of its Property is bound or affected;

and such Party is not in violation of, or default under, any Requirement of Law
or Contractual Obligation, or any material indenture, loan or credit agreement
described in Section 4.2(e), in any respect that constitutes a Material Adverse
Effect.

                                      -31-
<PAGE>   37

            4.3  No Governmental Approvals Required. Except as previously
obtained or made, no authorization, consent, approval, order, license or permit
from, or filing, registration or qualification with, any Governmental Agency is
or will be required to authorize or permit under applicable Laws the execution,
delivery and performance by Borrower or any Subsidiary Guarantor of the Loan
Documents to which it is a Party.

            4.4  Subsidiaries.

                 (a) Schedule 4.4(a) hereto correctly sets forth as of the
       Closing Date the names, form of legal entity, number of shares of capital
       stock issued and outstanding, number of shares owned by Borrower or a
       Subsidiary of Borrower (specifying such owner) and jurisdictions of
       organization of all Subsidiaries of Borrower and specifies which thereof,
       as of the Closing Date, are Inactive Subsidiaries. Except as described in
       Schedule 4.4(a), Borrower does not as of the Closing Date own any capital
       stock, equity interest or debt security which is convertible, or
       exchangeable, for capital stock or equity interest in any Person. Unless
       otherwise indicated in Schedule 4.4(a), all of the outstanding shares of
       capital stock, or all of the units of equity interest, as the case may
       be, of each Subsidiary are owned of record and beneficially by Borrower,
       there are no outstanding options, warrants or other rights to purchase
       capital stock of any such Subsidiary, and all such shares or equity
       interests so owned are duly authorized, validly issued, fully paid and
       non-assessable, and were issued in compliance with all applicable state
       and federal securities and other Laws, and are free and clear of all
       Liens, except for Permitted Encumbrances.

                 (b) Each Subsidiary is a legal entity of the type described in
       Schedule 4.4(a) duly formed, validly existing and in good standing under
       the Laws of its jurisdiction of organization, is duly qualified to do
       business as a foreign organization and is in good standing as such in
       each jurisdiction in which the conduct of its business or the ownership
       or leasing of its Properties makes such qualification necessary (except
       where the failure to be so duly qualified and in good standing does not
       constitute a Material Adverse Effect), and has all requisite power and
       authority to conduct its business and to own and lease its Properties.

                 (c) Except as described in Schedule 4.4(c), each Subsidiary
       is in compliance with all Laws (except for Hazardous Materials Laws which
       are the subject of Section 4.18) and other requirements applicable to its
       business and has obtained all authorizations, consents, approvals,
       orders, licenses, and permits from, and each such Subsidiary has
       accomplished all filings, registrations, and qualifications with, or
       obtained exemptions from any of the foregoing from, any Governmental
       Agency that are necessary for the transaction of its business, except
       where the failure to be in such compliance, obtain such authorizations,
       consents, approvals, orders, licenses, and permits, accomplish such
       filings, registrations, and qualifications, or obtain such exemptions,
       does not constitute a Material Adverse Effect.

            4.5  Financial Statements. Borrower has furnished to the Lenders
(a) the audited financial statements of Borrower for the Fiscal Year ended June
30, 1999 and (b) the unaudited balance sheet and statement of operations of
Borrower for the Fiscal Quarter ended March 31, 2000. The financial statements
described in clause (a) fairly present in all material respects the financial
condition, results of operations and changes in financial position of Borrower,
and the balance sheet and statement of operations described in clause (b) fairly
present the financial condition and results of operations of Borrower as of such
dates and for such periods in conformity with GAAP consistently applied (except
as otherwise indicated in the notes thereto), subject only to normal year-end
accruals and audit adjustments.

                                      -32-
<PAGE>   38

            4.6  No Other Liabilities; No Material Adverse Changes. Borrower
and its Subsidiaries do not have any material liability or material contingent
liability required under GAAP to be reflected or disclosed, and not reflected or
disclosed, in the balance sheet described in Section 4.5(c), other than
liabilities and contingent liabilities arising in the ordinary course of
business since the date of such financial statements. As of the Closing Date, no
circumstance or event has occurred that constitutes a Material Adverse Effect
since June 30, 1999, except as set forth in Schedule 4.6.

            4.7  Title to and Location of Property. Borrower and its
Subsidiaries have valid title to the Property (other than assets which are the
subject of a Capital Lease Obligation) reflected in the balance sheet described
in Section 4.5(c), other than (a) items of Property or exceptions to title which
are in each case immaterial and Property subsequently sold or disposed of in the
ordinary course of business and (b) uranium inventory owned by customers of
Borrower or its Subsidiaries for which a corresponding liability in favor of
such customers is reflected in such balance sheet. Such Property is free and
clear of all Liens and Rights of Others, other than Liens or Rights of Others
described in Schedule 4.7 and Permitted Encumbrances and Permitted Rights of
Others.

            4.8  Intellectual Property. Except as set forth in Schedule 4.8,
Borrower and its Subsidiaries own, or possess the right to use to the extent
necessary in their respective businesses, all trademarks, service marks, trade
names, copyrights, patents, patent rights and related registrations and
applications that are used in and are material to the conduct of their
businesses as now operated, and no such intellectual property, to the best
knowledge of Borrower, conflicts with the valid trademark, service mark, trade
name, copyright, patent or patent right of any other Person to the extent that
such conflict constitutes a Material Adverse Effect.

            4.9  Public Utility Holding Company Act. Neither Borrower nor any
of its Subsidiaries is a "holding company", or a "subsidiary company" of a
"holding company", or an "affiliate" of a "holding company" or of a "subsidiary
company" of a "holding company", within the meaning of the Public Utility
Holding Company Act of 1935, as amended.

            4.10 Litigation. Except for (a) any matter fully covered as to
subject matter and amount (subject to applicable deductibles and retentions) by
insurance for which the insurance carrier has not asserted lack of subject
matter coverage or reserved its right to do so, (b) any matter, or series of
related matters, involving a claim against Borrower or any of its Subsidiaries
or Predecessor of less than $1,000,000, (c) matters involving a claim against
Predecessor for which neither Borrower nor any of its Subsidiaries will be
liable subsequent to Privatization, (d) matters of an administrative nature not
involving a claim or charge against Borrower or any of its Subsidiaries or
Predecessor, (e) matters involving a claim under Hazardous Materials Laws which
are the subject of Section 4.18 and (f) matters set forth in Schedule 4.10,
there are no actions, suits, proceedings or investigations pending as to which
Borrower or any of its Subsidiaries or Predecessor have been served or have
received notice or, to the best knowledge of Borrower, threatened against or
affecting Borrower or any of its Subsidiaries or Predecessor or any Property of
any of them before any Governmental Agency.

            4.11 Binding Obligations. Each of the Loan Documents to which
Borrower and any Subsidiary Guarantor is a Party will, when executed and
delivered by such Party, constitute the legal, valid and binding obligation of
such Party, enforceable against such Party in accordance with its terms, except
as enforcement may be limited by Debtor Relief Laws or equitable principles
relating to the granting of specific performance and other equitable remedies as
a matter of judicial discretion.

            4.12 No Default.  No event has occurred and is continuing
that is a Default or Event of Default.

                                      -33-
<PAGE>   39

            4.13 ERISA.

                 (a) With respect to each Pension Plan:

                     (i) such Pension Plan complies in all material respects
              with ERISA and any other applicable Laws to the extent that
              noncompliance could reasonably be expected to have a Material
              Adverse Effect;

                     (ii) such Pension Plan has not incurred any "accumulated
              funding deficiency" (as defined in Section 302 of ERISA) that
              could reasonably be expected to have a Material Adverse Effect;

                     (iii) no "reportable event" (as defined in Section 4043 of
              ERISA, but excluding such events as to which the PBGC has by
              regulation waived the requirement therein contained that it be
              notified within thirty days of the occurrence of such event) has
              occurred that could reasonably be expected to have a Material
              Adverse Effect; and

                     (iv) neither Borrower nor any of its Subsidiaries has
              engaged in any non-exempt "prohibited transaction" (as defined in
              Section 4975 of the Code) that could reasonably be expected to
              have a Material Adverse Effect.

                 (b) Neither Borrower nor any of its Subsidiaries has incurred
       or expects to incur any withdrawal liability to any Multiemployer Plan
       that could reasonably be expected to have a Material Adverse Effect.

            4.14 Regulation U; Investment Company Act. No part of the proceeds
of any Loan hereunder will be used to purchase or carry, or to extend credit to
others for the purpose of purchasing or carrying, any Margin Stock in violation
of Regulation U. Neither Borrower nor any of its Subsidiaries is or is required
to be registered as an "investment company" under the Investment Company Act of
1940.

            4.15 Disclosure. No written statement made by a Senior Officer to
the Administrative Agent or any Lender in connection with this Agreement, or in
connection with any Loan, taken as a whole with other written statements
concurrently or theretofore made, as of the date thereof contained any untrue
statement of a material fact or omitted a material fact necessary to make the
statement made not misleading in light of all the circumstances existing at the
date the statement was made.

            4.16 Tax Liability. Borrower and its Subsidiaries have filed all
tax returns which are required to be filed, such returns are true, complete,
correct and in compliance with applicable Laws and Borrower and its Subsidiaries
have paid, or made provision for the payment of, all taxes shown to be due and
payable in said returns, or pursuant to any written assessment received by
Borrower or any of its Subsidiaries, except (a) such tax returns, taxes, fees or
other charges the amount or validity of which are being contested in good faith
by appropriate proceedings and as to which adequate reserves in respect to the
reasonably anticipated liability have been established and maintained and (b)
such returns or taxes which, if not filed or paid, would not constitute a
Material Adverse Effect.

            4.17 [Intentionally Omitted].

                                      -34-
<PAGE>   40

            4.18 Hazardous Materials. Except as described in Schedule 4.18,
as of the Closing Date (a) neither Borrower nor any of its Subsidiaries or
Predecessor at any time has disposed of, discharged, released or threatened the
release of any Hazardous Materials on, from or under the Real Property in
violation of any Hazardous Materials Law that would individually or in the
aggregate constitute a Material Adverse Effect, (b) to the best knowledge of
Borrower, no condition exists that violates any Hazardous Material Law affecting
any Real Property except for such violations that would not individually or in
the aggregate constitute a Material Adverse Effect, (c) no Real Property or any
portion thereof is or has been utilized by Borrower or any of its Subsidiaries
or Predecessor as a site for the manufacture of any Hazardous Materials and (d)
to the extent that any Hazardous Materials are used, generated or stored by
Borrower or any of its Subsidiaries or Predecessor on any Real Property, or
transported to or from such Real Property by Borrower or any of its
Subsidiaries, such use, generation, storage and transportation are in compliance
with all Hazardous Materials Laws except for such non-compliance that would not
constitute a Material Adverse Effect or be materially adverse to the interests
of the Lenders.

            4.19 Solvency. On the Closing Date, giving effect to all
transactions occurring on that date, each of Borrower and USEC (Delaware) is
Solvent.

            4.20 [Intentionally Omitted].

            4.21 [Intentionally Omitted].

            4.22 [Intentionally Omitted].

                                      -35-
<PAGE>   41

                                    Article 5
                              AFFIRMATIVE COVENANTS
                           (OTHER THAN INFORMATION AND
                            REPORTING REQUIREMENTS)

            So long as any Advance remains unpaid, or any other Obligation
remains unpaid, or any portion of the Commitment remains in force, Borrower
shall, and shall cause its Subsidiaries to, unless the Administrative Agent
(with the written approval of the Requisite Lenders) otherwise consents:

            5.1  Payment of Taxes and Other Potential Liens. Pay and discharge
promptly all taxes, assessments and governmental charges or levies imposed upon
any of them, upon their respective Property or any part thereof and upon their
respective income or profits or any part thereof, except that Borrower and its
Subsidiaries shall not be required to pay or cause to be paid (a) any tax,
assessment, charge or levy that is not yet past due, or is being contested in
good faith by appropriate proceedings so long as the relevant entity has
established and maintains adequate reserves in respect of the reasonably
anticipated liability for the payment of the same or (b) such taxes which, if
not paid, would not constitute a Material Adverse Effect.

            5.2  Preservation of Existence. Preserve and maintain their
respective existences in the jurisdiction of their formation and all material
authorizations, rights, franchises, privileges, consents, approvals, orders,
licenses, permits, or registrations from any Governmental Agency that are
necessary for the transaction of their respective business and qualify and
remain qualified to transact business in each jurisdiction in which such
qualification is necessary in view of their respective business or the ownership
or leasing of their respective Properties except (a) a merger permitted by
Section 6.2 or as otherwise permitted by this Agreement and (b) where the
failure to so qualify or remain qualified would not constitute a Material
Adverse Effect.

            5.3  Maintenance of Properties. Maintain, preserve and protect all
of their respective Properties in good order and condition, subject to wear and
tear in the ordinary course of business, and not permit any waste of their
respective Properties, except that the failure to maintain, preserve and protect
a particular item of Property that is at the end of its useful life or that is
not of significant value, either intrinsically or to the operations of Borrower,
shall not constitute a violation of this covenant.

            5.4  Maintenance of Insurance. Maintain liability, casualty and
other insurance (subject to customary deductibles and retentions) with
responsible insurance companies in such amounts and against such risks as is
carried by responsible companies engaged in similar businesses and owning
similar assets in the general areas in which Borrower and its Subsidiaries
operate.

            5.5  Compliance With Laws. Comply with all Requirements of Law
noncompliance with which constitutes a Material Adverse Effect, except that
Borrower and its Subsidiaries need not comply with a Requirement of Law then
being contested by any of them in good faith by appropriate proceedings.

            5.6  Inspection Rights. Upon reasonable notice, at any time during
regular business hours and as often as reasonably requested (but not so as to
materially interfere with the business of Borrower or any of its Subsidiaries)
permit the Administrative Agent or any Lender, or any authorized employee, agent
or representative thereof, to examine, audit and make copies and abstracts from
the records and books of account of, and to visit and inspect the Properties of,
Borrower and its Subsidiaries and to discuss the affairs, finances and accounts
of Borrower and its Subsidiaries with any of their officers, key employees or
accountants, subject in each case to compliance with applicable Laws; provided
that Borrower and its Subsidiaries shall not be obligated to provide any
information that is "classified" under applicable Laws.

                                      -36-
<PAGE>   42

            5.7  Keeping of Records and Books of Account. Keep adequate records
and books of account reflecting all financial transactions in conformity with
GAAP, consistently applied, and in material conformity with all applicable
requirements of any Governmental Agency having regulatory jurisdiction over
Borrower and its Subsidiaries.

            5.8 Compliance With Agreements. Promptly and fully comply with all
Contractual Obligations to which any one or more of them is a party, except for
any such Contractual Obligations (a) the performance of which would cause a
Default or (b) if the failure to comply does not constitute a Material Adverse
Effect.

            5.9 Use of Proceeds. Use the proceeds of Loans to provide working
capital and to fund general corporate purposes.

            5.10 Hazardous Materials Laws. Keep and maintain all Real Property
and each portion thereof in compliance in all material respects with all
applicable Hazardous Materials Laws and promptly notify the Administrative Agent
in writing (attaching a copy of any pertinent written material) of (a) any and
all material enforcement, cleanup, removal or other governmental or regulatory
actions instituted, completed or threatened in writing by a Governmental Agency
pursuant to any applicable Hazardous Materials Laws, (b) any and all material
claims made or threatened in writing by any Person against Borrower relating to
damage, contribution, cost recovery, compensation, loss or injury resulting from
any Hazardous Materials and (c) discovery by any Senior Officer of any of
Borrower of any material occurrence or condition on any real Property adjoining
or in the vicinity of such Real Property that could reasonably be expected to
cause such Real Property or any part thereof to be subject to any restrictions
on the ownership, occupancy, transferability or use of such Real Property under
any applicable Hazardous Materials Laws.

            5.11 Future Subsidiaries. Cause any Subsidiary (other than an
Inactive Subsidiary), formed or acquired after the Closing Date to execute and
deliver an appropriate joinder to the Subsidiary Guaranty.

                                      -37-
<PAGE>   43

                                    Article 6
                               NEGATIVE COVENANTS

            So long as any Advance remains unpaid, or any other Obligation
remains unpaid, or any portion of the Commitment remains in force, Borrower
shall not, and shall not permit any of its Subsidiaries to, unless the
Administrative Agent (with the written approval of the Requisite Lenders or, if
required by Section 11.2, of all of the Lenders) otherwise consents:

            6.1  Disposition of Property. Make any Disposition of its Property,
whether now owned or hereafter acquired, (a) except a Disposition by Borrower to
a Wholly-Owned Subsidiary, or by a Subsidiary to Borrower or a Wholly-Owned
Subsidiary and (b) a Disposition for which the Net Cash Sales Proceeds, when
added to the aggregate Net Cash Sales Proceeds of all Dispositions made during
that Fiscal Year, does not exceed an amount equal to 10% of the book value of
consolidated total assets of Borrower and its Subsidiaries as of the last day of
the immediately preceding Fiscal Year.

            6.2  Mergers. Merge or consolidate with or into any Person, except
(a) mergers and consolidations of a Subsidiary of Borrower into Borrower or a
Wholly-Owned Subsidiary or of Subsidiaries with each other and (b) a merger or
consolidation of a Person into Borrower or with or into a Wholly-Owned
Subsidiary of Borrower which constitutes an acquisition permitted by Section
6.3; provided that (i) Borrower or a Wholly-Owned Subsidiary is the surviving
entity, (ii) no Change in Control results therefrom, (iii) no Default or Event
of Default then exists or would result therefrom and (iv) Borrower and each of
the Subsidiary Guarantors execute such amendments to the Loan Documents as the
Administrative Agent may reasonably determine are appropriate as a result of
such merger.

            6.3  Hostile Acquisitions. Directly or indirectly use the proceeds
of any Loan in connection with the acquisition of part or all of a voting
interest of five percent (5%) or more in any corporation or other business
entity if such acquisition is opposed by the board of directors of such
corporation or business entity.

            6.4  Distributions. Make any Distribution, whether from capital,
income or otherwise, and whether in Cash or other Property, subsequent to the
Privatization except:

                 (a) Distributions by any Subsidiary of Borrower to Borrower or
       any Wholly-Owned Subsidiary;

                 (b) dividends payable on Common Stock; and

                 (c) repurchases of Common Stock; provided that no Default or
       Event of Default then exists or would result therefrom.

            6.5  ERISA. At any time, permit any Pension Plan to: (i) engage in
any non-exempt "prohibited transaction" (as defined in Section 4975 of the
Code); (ii) fail to comply with ERISA or any other applicable Laws; (iii) incur
any material "accumulated funding deficiency" (as defined in Section 302 of
ERISA); (iv) terminate in any manner, which, with respect to each event listed
above, could reasonably be expected to result in a Material Adverse Effect; or
(v) withdraw, completely or partially, from any Multiemployer Plan if to do so
could reasonably be expected to result in a Material Adverse Effect.

                                      -38-
<PAGE>   44

            6.6  Change in Nature of Business. Make any material change in the
nature of the business of Borrower and its Subsidiaries, taken as a whole;
provided that the development and commercialization of an advanced uranium
enrichment technology as described in the Registration Statement shall not be
deemed a material change in such business.

            6.7  Liens and Negative Pledges. Create, incur, assume or suffer to
exist any Lien or Negative Pledge of any nature upon or with respect to any of
their respective Properties, or engage in any sale and leaseback transaction
with respect to any of their respective Properties, whether now owned or
hereafter acquired, except:

                 (a)  Liens and Negative Pledges existing on the Closing Date
       and disclosed in Schedule 4.7 and any renewals/extensions or amendments
       thereof, provided that the obligations secured or benefited thereby are
       not increased;

                 (b)  Liens and Negative Pledges under the Loan Documents;

                 (c)  Permitted Encumbrances;

                 (d) Liens on Property acquired by Borrower or any of its
       Subsidiaries that were in existence at the time of the acquisition of
       such Property and were not created in contemplation of such acquisition;

                 (e) Liens (to the extent that such arrangements constitute a
       Lien) on uranium inventory owned by customers of Borrower but held by
       Borrower for which there exists a corresponding liability of Borrower in
       favor of such customers; and

                 (f) Liens not otherwise described above on Property having a
       book value or fair market value not in excess of ten percent (10%) of
       Stockholders' Equity of Borrower and its Subsidiaries as of the last day
       of the immediately preceding Fiscal Year.

            6.8  Transactions with Affiliates. Enter into any transaction of any
kind with any Affiliate of Borrower other than (a) salary, bonus, employee stock
option and other compensation arrangements with directors or officers in the
ordinary course of business, (b) transactions that are fully disclosed to the
board of directors (or executive committee thereof) of Borrower and expressly
authorized by a resolution of the board of directors (or executive committee) of
Borrower which is approved by a majority of the directors (or executive
committee) not having an interest in the transaction, (c) transactions between
or among Borrower and its Subsidiaries and (d) transactions on overall terms at
least as favorable to Borrower or its Subsidiaries as would be the case in an
arm's-length transaction between unrelated parties of equal bargaining power.

            6.9  Stockholders' Equity. Permit Stockholders' Equity, as of the
last day of any Fiscal Quarter, to be less than the sum of (a) $832,500,000 plus
(b) 35% of Net Income in the Fiscal Quarter ending September 30, 1998 and each
Fiscal Quarter thereafter (with no deduction for a net loss in any such Fiscal
Quarter) plus (c) 50% of the proceeds of any issuance by Borrower of equity
securities (except to employees or former employees of Borrower pursuant to an
employee stock option plan maintained by Borrower) subsequent to the Reference
Date.

            6.10 Capitalization Ratio.  Permit, as of the last day of any
Fiscal Quarter, the ratio of (a) all Indebtedness of Borrower and its
Subsidiaries on that date to (b) Total Capitalization on that date to exceed
0.55 to 1.00.

            6.11 Investments.  Make or suffer to exist any Investment, other
than:

                                      -39-
<PAGE>   45
                 (a) Investments in existence on the Closing Date and disclosed
       on Schedule 6.11;

                 (b) Investments consisting of Cash Equivalents;

                 (c) Investments consisting of advances to officers, directors
       and employees of Borrower and its Subsidiaries for travel, entertainment,
       relocation, anticipated bonus and analogous ordinary business purposes;

                 (d) Investments in Wholly-Owned Subsidiaries;

                 (e) Investments consisting of the extension of credit to
       customers or suppliers of Borrower and its Subsidiaries in the ordinary
       course of business and any Investments received in satisfaction or
       partial satisfaction thereof;

                 (f) Investments received in connection with the settlement of a
       bona fide dispute with another Person;

                 (g) Investments representing all or a portion of the
       sales price of Property sold or services provided to another Person;

                 (h) Investments consisting of advances to the vendor under the
       Russian HEU Contract (as such term is defined in the Registration
       Statement) and other advances in the ordinary course of business to
       vendors against purchases of inventory which Borrower is obligated to
       purchase in the future;

                 (i) Investments in joint ventures to develop advanced uranium
       enrichment technologies generally consistent in amounts and timing to
       those described in Borrower's Strategic Plan dated September, 1997; and

                 (j) Investments not described above not in excess of an amount
       equal to 15% of the consolidated total assets of Borrower and its
       Subsidiaries as of the last day of the immediately preceding Fiscal
       Quarter outstanding at any time.

            6.12 Subsidiary Indebtedness. Permit any Subsidiary of Borrower to
create, incur, assume or suffer to exist any Indebtedness or Guaranty
Obligation, except (a) Indebtedness and Guaranty Obligations in existence on the
Closing Date, (b) the Subsidiary Guaranty, (c) Indebtedness owed to Borrower or
another Subsidiary of Borrower, (d) Capital Lease Obligations and purchase money
obligations of a Subsidiary in respect of Property used by that Subsidiary, (e)
the Subsidiary Guaranty (as such term is defined in the Other Loan Agreement)
and (f) other Indebtedness not described above not in excess of $100,000,000
outstanding at any time.

                                      -40-
<PAGE>   46

                                    Article 7
                    INFORMATION AND REPORTING REQUIREMENTS

            7.1  Financial and Business Information. So long as any Advance
remains unpaid, or any other Obligation remains unpaid, or any portion of the
Commitment remains in force, Borrower shall, unless the Administrative Agent
(with the written approval of the Requisite Lenders) otherwise consents, at
Borrower's sole expense, deliver to the Administrative Agent for distribution by
it to the Lenders, a sufficient number of copies for all of the Lenders of the
following:

                 (a) [Intentionally Omitted];

                 (b) [Intentionally Omitted];

                 (c) As soon as practicable, and in any event within 45 days
       after the end of each Fiscal Quarter (other than the fourth Fiscal
       Quarter in any Fiscal Year), the consolidated balance sheet of Borrower
       and its Subsidiaries as at the end of such Fiscal Quarter and the
       consolidated statements of income and cash flows for such Fiscal Quarter,
       and the portion of the Fiscal Year ended with such Fiscal Quarter, all in
       reasonable detail. Such financial statements shall be certified by the
       chief financial officer of Borrower as fairly presenting the financial
       condition, results of operations and cash flows of Borrower and its
       Subsidiaries in accordance with GAAP (other than footnote disclosures),
       consistently applied, as at such date and for such periods, subject only
       to normal year-end accruals and audit adjustments;

                 (d) As soon as practicable, and in any event within 90 days
       after the end of each Fiscal Year, the consolidated balance sheet of
       Borrower and its Subsidiaries as at the end of such Fiscal Year and the
       consolidated statements of income and cash flows, in each case of
       Borrower and its Subsidiaries for such Fiscal Year, all in reasonable
       detail. Such financial statements shall be prepared in accordance with
       GAAP, consistently applied, and shall be accompanied by a report of
       Arthur Andersen LLP or other independent public accountants of recognized
       standing, which report shall be prepared in accordance with generally
       accepted auditing standards as at such date, and shall not be subject to
       any qualifications or exceptions as to the scope of the audit nor to any
       other qualification or exception determined by the Requisite Lenders in
       their good faith business judgment to be adverse to the interests of the
       Lenders;

                 (e) Promptly after the same are available, and in any event
       within five (5) Banking Days after filing with the Securities and
       Exchange Commission, copies of each annual report, proxy or financial
       statement or other report or communication sent to the stockholders of
       Borrower, and copies of all annual, regular, periodic and special reports
       and registration statements which Borrower may file or be required to
       file with the Securities and Exchange Commission under Section 13 or
       15(d) of the Securities Exchange Act of 1934, as amended, and not
       otherwise required to be delivered to the Lenders pursuant to other
       provisions of this Section 7.1;

                 (f) Promptly after request by the Administrative Agent or any
       Lender, copies of any other report or other document that was filed by
       Borrower with any Governmental Agency; provided that neither Borrower nor
       any of its Subsidiaries shall be obligated to provide any information
       that is "classified" under applicable Laws;

                                      -41-
<PAGE>   47

                 (g) Promptly upon a Senior Officer becoming aware, and in any
       event within ten (10) Banking Days after becoming aware, of the
       occurrence of any (i) "reportable event" (as such term is defined in
       Section 4043 of ERISA, but excluding such events as to which the PBGC has
       by regulation waived the requirement therein contained that it be
       notified within thirty days of the occurrence of such event) or (ii)
       non-exempt "prohibited transaction" (as such term is defined in Section
       406 of ERISA or Section 4975 of the Code) involving any Pension Plan or
       any trust created thereunder, telephonic notice specifying the nature
       thereof, and, no more than two (2) Banking Days after such telephonic
       notice, written notice again specifying the nature thereof and specifying
       what action Borrower is taking or proposes to take with respect thereto,
       and, when known, any action taken by the Internal Revenue Service with
       respect thereto;

                 (h) As soon as practicable, and in any event within two (2)
       Banking Days after a Senior Officer becomes aware of the existence of any
       condition or event which constitutes a Default or Event of Default,
       telephonic notice specifying the nature and period of existence thereof,
       and, no more than two (2) Banking Days after such telephonic notice,
       written notice again specifying the nature and period of existence
       thereof and specifying what action Borrower is taking or proposes to take
       with respect thereto;

                 (i) Promptly upon a Senior Officer becoming aware that (i) any
       Person has commenced a legal proceeding with respect to a claim against
       Borrower that is $5,000,000 or more in excess of the amount thereof that
       is fully covered by insurance, (ii) any creditor under a credit agreement
       involving Indebtedness of $5,000,000 or more or any lessor under a lease
       involving aggregate rent of $5,000,000 or more has asserted a default
       thereunder on the part of Borrower or, (iii) any Person has commenced a
       legal proceeding with respect to a claim against Borrower under a
       contract that is not a credit agreement or material lease with respect to
       a claim of in excess of $5,000,000 or which otherwise may reasonably be
       expected to result in a Material Adverse Effect, a written notice
       describing the pertinent facts relating thereto and what action Borrower
       is taking or proposes to take with respect thereto;

                 (j) Promptly upon a Senior Officer becoming aware of a change
       in the credit rating given by S&P or Moody's to Borrower's long term
       senior unsecured non-credit enhanced debt, written notice thereof; and

                 (k) Such other data and information as from time to time may be
       reasonably requested by the Administrative Agent, any Lender (through the
       Administrative Agent) or the Requisite Lenders; provided that neither
       Borrower nor any of its Subsidiaries shall be obligated to provide any
       information that is "classified" under applicable Laws.

            7.2  Compliance Certificates. So long as any Advance remains unpaid,
or any other Obligation remains unpaid or unperformed, or any portion of any of
the Commitments remains outstanding, Borrower shall, at Borrower's sole expense,
deliver to the Administrative Agent for distribution by it to the Lenders
concurrently with the financial statements required pursuant to Sections 7.1(c)
and 7.1(d), a Compliance Certificate signed by a Senior Officer.

                                      -42-
<PAGE>   48

                                    Article 8
                                   CONDITIONS

            8.1  Initial Advances. The effectiveness of this Agreement as an
amendment and restatement of the Original Loan Agreement, and the effectiveness
of the other Loan Documents as amendments and restatements of the other
Pre-Existing Loan Documents, and the obligation of each Lender to make the
initial Advance to be made by it and, if applicable, to make or accept an
Adjusting Purchase Payment, are subject to the following conditions precedent,
each of which must be satisfied unless all of the Lenders, in their sole and
absolute discretion, shall agree otherwise:

                 (a) The Administrative Agent shall have received all of the
       following, each of which shall be originals unless otherwise specified,
       each properly executed by a Responsible Official of each party thereto,
       each dated as of the Closing Date and each in form and substance
       satisfactory to the Administrative Agent and its legal counsel (unless
       otherwise specified or, in the case of the date of any of the following,
       unless the Administrative Agent otherwise agrees or directs):

                     (1) at least one (1) executed counterpart of this
            Agreement, together with arrangements satisfactory to the
            Administrative Agent for additional executed counterparts,
            sufficient in number for distribution to the Lenders and Borrower;

                     (2) Notes executed by Borrower in favor of each Lender,
            each in a principal amount equal to that Lender's Pro Rata Share of
            the Commitment;

                     (3) [Intentionally Omitted];

                     (4) [Intentionally Omitted];

                     (5) [Intentionally Omitted];

                     (6)   the Subsidiary Guaranty executed by the
            Subsidiary Guarantors;

                     (7) with respect to Borrower and the Subsidiary
            Guarantors, such documentation as the Administrative Agent may
            reasonably require to establish the due organization, valid
            existence and good standing of Borrower and the Subsidiary
            Guarantors, their qualification to engage in business in each
            material jurisdiction in which they are engaged in business or
            required to be so qualified, their authority to execute, deliver and
            perform the Loan Documents to which it is a Party, the identity,
            authority and capacity of each Responsible Official thereof
            authorized to act on its behalf, including certified copies of
            articles of incorporation and amendments thereto, bylaws and
            amendments thereto, certificates of good standing and/or
            qualification to engage in business, tax clearance certificates,
            certificates of corporate resolutions, incumbency certificates,
            Certificates of Responsible Officials, and the like;

                     (8) the Opinion of Counsel;

                     (9) [Intentionally Omitted];

                                      -43-
<PAGE>   49

                     (10) [Intentionally Omitted];

                     (11) [Intentionally Omitted];

                     (12) a Certificate of the chief financial officer of
            Borrower certifying that the conditions specified in Sections 8.1(f)
            and 8.1(g) have been satisfied; and

                     (13) such other assurances, certificates, documents,
            consents or opinions as the Administrative Agent or the Requisite
            Lenders reasonably may require.

                 (b) The fees payable on the Closing Date pursuant to Section
       3.2 shall have been paid, and any accrued interest and fees under the
       Pre-Existing Loan Documents shall have been paid as specified in Section
       3.19.

                 (c) There shall not have occurred any event or condition that,
       in the good faith judgment of the Administrative Agent and the Lead
       Arranger, constitutes a material disruption of, or material adverse
       change in the conditions in, the financial, banking or capital markets in
       connection with the syndication of the Facility.

                 (d) [Intentionally Omitted].

                 (e) The reasonable costs and expenses of the Administrative
       Agent in connection with the preparation of the Loan Documents payable
       pursuant to Section 11.3, and invoiced to Borrower prior to the Closing
       Date, shall have been paid.

                 (f) The representations and warranties of Borrower contained
      in Article 4 shall be true and correct in all material respects.

                 (g) Borrower shall be in compliance with all the terms and
       provisions of the Loan Documents, and giving effect to the initial
       Advance, no Default or Event of Default shall have occurred and be
       continuing.

                 (h) All legal matters relating to the Loan Documents shall be
       satisfactory to Sheppard, Mullin, Richter & Hampton LLP, special counsel
       to the Administrative Agent.

                 (i) The Closing Date shall have occurred on or before July 25,
       2000.

                 (j) The Borrower shall not have exercised its election under
       Section 3.1(d)(vi) of the Original Loan Agreement to covert the "Loans"
       (as defined thereunder) to a term loan.

            8.2  Any Advance. The obligation of each Lender to make any Advance
is subject to the following conditions precedent (unless the Requisite Lenders
or, in any case where the approval of all of the Lenders is required pursuant to
Section 11.2, all of the Lenders, in their sole and absolute discretion, shall
agree otherwise):

                                      -44-
<PAGE>   50

                 (a) except (i) for representations and warranties which
       expressly speak as of a particular date or are no longer true and correct
       as a result of a change which is permitted by this Agreement or (ii) as
       disclosed by Borrower and approved in writing by the Requisite Lenders,
       the representations and warranties contained in Article 4 (other than
       Sections 4.4(a), 4.6 (first sentence), 4.10 and 4.17) shall be true and
       correct in all material respects on and as of the date of the Advance as
       though made on that date;

                 (b) no circumstance or event shall have occurred that
       constitutes a Material Adverse Effect since the Closing Date; provided,
       that this clause (b) shall not apply at any time that the Facility is
       explicitly in support of authorized or outstanding commercial paper of
       Borrower;

                 (c) other than matters described in Schedule 4.10 or not
       required as of the Closing Date to be therein described, there shall not
       be then pending or threatened any action, suit, proceeding or
       investigation against or affecting Borrower or any of its Subsidiaries or
       any Property of any of them before any Governmental Agency that
       constitutes a Material Adverse Effect;

                 (d) the Administrative Agent shall have timely received a
       Request for Loan in compliance with Article 2; and

                 (e) the Administrative Agent shall have received, in form and
       substance satisfactory to the Administrative Agent, such other
       assurances, certificates, documents or consents related to the foregoing
       as the Administrative Agent or Requisite Lenders reasonably may require.

            8.3  Return of Pre-Existing Notes. Upon the effectiveness of this
Agreement, including the delivery by Borrower of all documents required under
Section 8.1, the Lenders holding the Pre-Existing Notes shall return them to
Borrower, in each case marked "Canceled and Replaced."

                                      -45-

<PAGE>   51

                                    Article 9
            EVENTS OF DEFAULT AND REMEDIES UPON EVENT OF DEFAULT

            9.1  Events of Default. The existence or occurrence of any one or
more of the following events, whatever the reason therefor and under any
circumstances whatsoever, shall constitute an Event of Default:

                 (a) Borrower fails to pay any principal on any of the Notes, or
       any portion thereof, on the date when due; or

                 (b) Borrower fails to pay any interest on any of the Notes, or
       any fees under Sections 3.2, 3.3 or 3 .4 or any portion thereof, within
       five (5) days after the date when due; or fails to pay any other fee or
       amount payable to the Lenders under any Loan Document, or any portion
       thereof, within two (2) Banking Days after demand therefor; or

                 (c) Borrower fails to comply with any of the covenants
       contained in Article 6; or

                 (d) Borrower fails to comply with Section 7.1(i) in any
       respect that is materially adverse to the interests of the Lenders; or

                 (e) Borrower or any other Party fails to perform or observe
       any other covenant or agreement (not specified in clause (a), (b), (c) or
       (d) above) contained in any Loan Document on its part to be performed or
       observed within twenty (20) Banking Days after the giving of notice by
       the Administrative Agent on behalf of the Requisite Lenders of such
       Default or, if such Default is not reasonably susceptible of cure within
       such period, within such longer period as is reasonably necessary to
       effect a cure so long as such Borrower or such Party continues to
       diligently pursue cure of such Default but not in any event in excess of
       forty (40) Banking Days; or

                 (f) Any representation or warranty of Borrower or any other
       Party made in any Loan Document, or in any certificate or other writing
       delivered by Borrower or such Party pursuant to any Loan Document, proves
       to have been incorrect when made or reaffirmed in any respect that is
       materially adverse to the interests of the Lenders; or

                 (g) Borrower or any Subsidiary Guarantor (i) fails to pay the
       principal, or any principal installment, of any present or future
       Indebtedness of $10,000,000 or more, or any guaranty of present or future
       Indebtedness of $10,000,000 or more, on its part to be paid, when due (or
       within any stated grace period), whether at the stated maturity, upon
       acceleration, by reason of required prepayment or otherwise or (ii) fails
       to perform or observe any other term, covenant or agreement on its part
       to be performed or observed, or suffers any event of default to occur, in
       connection with any present or future Indebtedness of $10,000,000 or
       more, or of any guaranty of present or future Indebtedness of $10,000,000
       or more, if as a result of such failure or sufferance any holder or
       holders thereof (or an agent or trustee on its or their behalf) has the
       right to declare such Indebtedness due before the date on which it
       otherwise would become due or the right to require Borrower or the
       Subsidiary Guarantor to redeem or purchase, or offer to redeem or
       purchase, all or any portion of such Indebtedness; or

                                      -46-

<PAGE>   52

                 (h) Any Loan Document, at any time after its execution and
       delivery and for any reason other than the agreement or action (or
       omission to act) of the Administrative Agent or the Lenders or
       satisfaction in full of all the Obligations, ceases to be in full force
       and effect or is declared by a court of competent jurisdiction to be null
       and void, invalid or unenforceable in any respect which is materially
       adverse to the interests of the Lenders; or any Party thereto denies in
       writing that it has any or further liability or obligation under any Loan
       Document, or purports to revoke, terminate or rescind same; or

                (i) A final judgment against Borrower or any Subsidiary
       Guarantor is entered for the payment of money in excess of $5,000,000
       (not covered by insurance or for which an insurer has reserved its
       rights) and, absent procurement of a stay of execution, such judgment
       remains unsatisfied for thirty (30) calendar days after the date of entry
       of judgment, or in any event later than five (5) days prior to the date
       of any proposed sale thereunder; or any writ or warrant of attachment or
       execution or similar process is issued or levied against all or any
       material part of the Property of Borrower or any Subsidiary Guarantor and
       is not released, vacated or fully bonded within thirty (30) calendar days
       after its issue or levy; or

                (j) Borrower or any Subsidiary Guarantor institutes or consents
       to the institution of any proceeding under a Debtor Relief Law relating
       to it or to all or any material part of its Property, or is unable or
       admits in writing its inability to pay its debts as they mature, or makes
       an assignment for the benefit of creditors; or applies for or consents to
       the appointment of any receiver, trustee, custodian, conservator,
       liquidator, rehabilitator or similar officer for it or for all or any
       material part of its Property; or any receiver, trustee, custodian,
       conservator, liquidator, rehabilitator or similar officer is appointed
       without the application or consent of that Person and the appointment
       continues undischarged or unstayed for sixty (60) calendar days; or any
       proceeding under a Debtor Relief Law relating to any such Person or to
       all or any part of its Property is instituted without the consent of that
       Person and continues undismissed or unstayed for sixty (60) calendar
       days; or

                (k) The occurrence of an Event of Default (as such term is or
       may hereafter be specifically defined in any other Loan Document in
       existence on the Closing Date) under any other Loan Document; or

                (l) Any Pension Plan maintained by Borrower is finally
       determined by the PBGC to have a material "accumulated funding
       deficiency" as that term is defined in Section 302 of ERISA in excess of
       an amount equal to 5% of the consolidated total assets of Borrower as of
       the most-recently ended Fiscal Quarter; or

                (m) The Nuclear Regulatory Commission or other Governmental
       Authority takes any action that restricts the operation of Borrower and
       its Subsidiaries such that Borrower or its Subsidiary is or will be
       unable to make scheduled deliveries under customer contracts the payments
       for which would exceed 10% of the projected gross revenues of Borrower
       and its Subsidiaries over the next twelve (12) consecutive months; or

                (n) The Requisite Lenders determine in good faith that a
       circumstance or event has occurred that constitutes a Material Adverse
       Effect; provided, that this clause (n) shall not apply at any time that
       the Facility is explicitly in support of authorized or outstanding
       commercial paper of Borrower; or

                                      -47-
<PAGE>   53
                  (o) The occurrence of an Event of Default (as such term is
      defined in the Other Loan Agreement) under the Other Loan Agreement.

            9.2 Remedies Upon Event of Default. Without limiting any other
rights or remedies of the Administrative Agent or the Lenders provided for
elsewhere in this Agreement, or the other Loan Documents, or by applicable Law,
or in equity, or otherwise:

                  (a) Upon the occurrence, and during the continuance, of any
      Event of Default other than an Event of Default described in Section
      9.1(j):

                        (1) the Commitment to make Advances and all other
            obligations of the Administrative Agent or the Lenders and all
            rights of Borrower and any other Parties under the Loan Documents
            shall be suspended without notice to or demand upon Borrower, which
            are expressly waived by Borrower, except that all of the Lenders or
            the Requisite Lenders (as the case may be, in accordance with
            Section 11.2) may waive an Event of Default or, without waiving,
            determine, upon terms and conditions satisfactory to the Lenders or
            Requisite Lenders, as the case may be, to reinstate the Commitment
            and such other obligations and rights and make further Advances,
            which waiver or determination shall apply equally to, and shall be
            binding upon, all the Lenders;

                        (2) [Intentionally Omitted]; and

                        (3) the Requisite Lenders may request the Administrative
            Agent to, and the Administrative Agent thereupon shall, terminate
            the Commitment and/or declare all or any part of the unpaid
            principal of all Notes, all interest accrued and unpaid thereon and
            all other amounts payable under the Loan Documents to be forthwith
            due and payable, whereupon the same shall become and be forthwith
            due and payable, without protest, presentment, notice of dishonor,
            demand or further notice of any kind, all of which are expressly
            waived by Borrower.

                  (b)   Upon the occurrence of any Event of Default described
      in Section 9.1(j):

                        (1) the Commitment to make Advances and all other
            obligations of the Administrative Agent or the Lenders and all
            rights of Borrower and any other Parties under the Loan Documents
            shall terminate without notice to or demand upon Borrower, which are
            expressly waived by Borrower, except that all of the Lenders may
            waive the Event of Default or, without waiving, determine, upon
            terms and conditions satisfactory to all the Lenders, to reinstate
            the Commitment and such other obligations and rights and make
            further Advances, which determination shall apply equally to, and
            shall be binding upon, all the Lenders;

                        (2) [Intentionally Omitted]; and

                        (3) the unpaid principal of all Notes, all interest
            accrued and unpaid thereon and all other amounts payable under the
            Loan Documents shall be forthwith due and payable, without protest,
            presentment, notice of dishonor, demand or further notice of any
            kind, all of which are expressly waived by Borrower.

                                      -48-
<PAGE>   54

                  (c) Upon the occurrence of any Event of Default, the Lenders
      and the Administrative Agent, or any of them, without notice to (except as
      expressly provided for in any Loan Document) or demand upon Borrower,
      which are expressly waived by Borrower (except as to notices expressly
      provided for in any Loan Document), may proceed (but only with the consent
      of the Requisite Lenders) to protect, exercise and enforce their rights
      and remedies under the Loan Documents against Borrower and any other Party
      and such other rights and remedies as are provided by Law or equity.

                  (d) The order and manner in which the Lenders' rights and
      remedies are to be exercised shall be determined by the Requisite Lenders
      in their sole discretion, and all payments received by the Administrative
      Agent and the Lenders, or any of them, shall be applied first to the costs
      and expenses (including reasonable attorneys' fees and disbursements and
      the reasonably allocated costs of attorneys employed by the Administrative
      Agent or by any Lender) of the Administrative Agent and of the Lenders,
      and thereafter paid pro rata to the Lenders in the same proportions that
      the aggregate Obligations owed to each Lender under the Loan Documents
      bear to the aggregate Obligations owed under the Loan Documents to all the
      Lenders, without priority or preference among the Lenders. Regardless of
      how each Lender may treat payments for the purpose of its own accounting,
      for the purpose of computing Borrower' Obligations hereunder and under the
      Notes, payments shall be applied first, to the costs and expenses of the
      Administrative Agent and the Lenders, as set forth above, second, to the
      payment of accrued and unpaid interest due under any Loan Documents to and
      including the date of such application (ratably, and without duplication,
      according to the accrued and unpaid interest due under each of the Loan
      Documents), and third, to the payment of all other amounts (including
      principal and fees) then owing to the Administrative Agent or the Lenders
      under the Loan Documents. No application of payments will cure any Event
      of Default, or prevent acceleration, or continued acceleration, of amounts
      payable under the Loan Documents, or prevent the exercise, or continued
      exercise, of rights or remedies of the Lenders hereunder or thereunder or
      at Law or in equity.

                                      -49-
<PAGE>   55

                                   Article 10
                            THE ADMINISTRATIVE AGENT

            10.1 Appointment and Authorization. Subject to Section 10.8, each
Lender hereby irrevocably appoints and authorizes the Administrative Agent to
take such action as agent on its behalf and to exercise such powers under the
Loan Documents as are delegated to the Administrative Agent by the terms thereof
or are reasonably incidental, as determined by the Administrative Agent,
thereto. This appointment and authorization is intended solely for the purpose
of facilitating the servicing of the Loans and does not constitute appointment
of the Administrative Agent as trustee for any Lender or as representative of
any Lender for any other purpose and, except as specifically set forth in the
Loan Documents to the contrary, the Administrative Agent shall take such action
and exercise such powers only in an administrative and ministerial capacity.

            10.2 Administrative Agent and Affiliates. Bank of America National
Trust and Savings Association (and each successor Administrative Agent) has the
same rights and powers under the Loan Documents as any other Lender and may
exercise the same as though it were not the Administrative Agent, and the term
"Lender" or "Lenders" includes Bank of America, N.A. in its individual capacity.
Bank of America, N.A. (and each successor Administrative Agent) and its
Affiliates may accept deposits from, lend money to and generally engage in any
kind of banking, trust or other business with Borrower, any Subsidiary thereof,
or any Affiliate of Borrower or any Subsidiary thereof, as if it were not the
Administrative Agent and without any duty to account therefor to the Lenders.
Bank of America, N.A. (and each successor Administrative Agent) need not account
to any other Lender for any monies received by it for reimbursement of its costs
and expenses as Administrative Agent hereunder, or (subject to Section 11.10)
for any monies received by it in its capacity as a Lender hereunder. The
Administrative Agent shall not be deemed to hold a fiduciary relationship with
any Lender and no implied covenants, functions, responsibilities, duties,
obligations or liabilities shall be read into this Agreement or otherwise exist
against the Administrative Agent.

            10.3 Proportionate Interest in any Collateral. The Administrative
Agent, on behalf of all the Lenders, shall hold in accordance with the Loan
Documents all items of any collateral or interests therein received or held by
the Administrative Agent. Subject to the Administrative Agent's and the Lenders'
rights to reimbursement for their costs and expenses hereunder (including
reasonable attorneys' fees and disbursements and other professional services and
the reasonably allocated costs of attorneys employed by the Administrative Agent
or a Lender) and subject to the application of payments in accordance with
Section 9.2(d), each Lender shall have an interest in the Lenders' interest in
such collateral or interests therein in the same proportions that the aggregate
Obligations owed such Lender under the Loan Documents bear to the aggregate
Obligations owed under the Loan Documents to all the Lenders, without priority
or preference among the Lenders.

            10.4 Lenders' Credit Decisions. Each Lender agrees that it has,
independently and without reliance upon the Administrative Agent, any other
Lender or the directors, officers, agents, employees or attorneys of the
Administrative Agent or of any other Lender, and instead in reliance upon
information supplied to it by or on behalf of Borrower and upon such other
information as it has deemed appropriate, made its own independent credit
analysis and decision to enter into this Agreement. Each Lender also agrees that
it shall, independently and without reliance upon the Administrative Agent, any
other Lender or the directors, officers, agents, employees or attorneys of the
Administrative Agent or of any other Lender, continue to make its own
independent credit analyses and decisions in acting or not acting under the Loan
Documents.

                                      -50-
<PAGE>   56

            10.5  Action by Administrative Agent.

                  (a) Absent actual knowledge of the Administrative Agent of the
      existence of a Default, the Administrative Agent may assume that no
      Default has occurred and is continuing, unless the Administrative Agent
      (or the Lender that is then the Administrative Agent) has received notice
      from Borrower stating the nature of the Default or has received notice
      from a Lender stating the nature of the Default and that such Lender
      considers the Default to have occurred and to be continuing.

                  (b) The Administrative Agent has only those obligations under
      the Loan Documents as are expressly set forth therein.

                  (c) Except for any obligation expressly set forth in the Loan
      Documents and as long as the Administrative Agent may assume that no Event
      of Default has occurred and is continuing, the Administrative Agent may,
      but shall not be required to, exercise its discretion to act or not act,
      except that the Administrative Agent shall be required to act or not act
      upon the instructions of the Requisite Lenders (or of all the Lenders, to
      the extent required by Section 11.2) and those instructions shall be
      binding upon the Administrative Agent and all the Lenders, provided that
      the Administrative Agent shall not be required to act or not act if to do
      so would be contrary to any Loan Document or to applicable Law or would
      result, in the reasonable judgment of the Administrative Agent, in
      substantial risk of liability to the Administrative Agent.

                  (d) If the Administrative Agent has received a notice
      specified in clause (a), the Administrative Agent shall immediately give
      notice thereof to the Lenders and shall act or not act upon the
      instructions of the Requisite Lenders (or of all the Lenders, to the
      extent required by Section 11.2), provided that the Administrative Agent
      shall not be required to act or not act if to do so would be contrary to
      any Loan Document or to applicable Law or would result, in the reasonable
      judgment of the Administrative Agent, in substantial risk of liability to
      the Administrative Agent, and except that if the Requisite Lenders (or all
      the Lenders, if required under Section 11.2) fail, for five (5) Banking
      Days after the receipt of notice from the Administrative Agent, to
      instruct the Administrative Agent, then the Administrative Agent, in its
      sole discretion, may act or not act as it deems advisable for the
      protection of the interests of the Lenders.

                  (e) The Administrative Agent shall have no liability to any
      Lender for acting, or not acting, as instructed by the Requisite Lenders
      (or all the Lenders, if required under Section 11.2), notwithstanding any
      other provision hereof.

            10.6 Liability of Administrative Agent. Neither the Administrative
Agent nor any of its directors, officers, agents, employees or attorneys shall
be liable for any action taken or not taken by them under or in connection with
the Loan Documents, except for their own gross negligence or willful misconduct.
Without limitation on the foregoing, the Administrative Agent and its directors,
officers, agents, employees and attorneys:

                  (a) May treat the payee of any Note as the holder thereof
      until the Administrative Agent receives notice of the assignment or
      transfer thereof, in form satisfactory to the Administrative Agent, signed
      by the payee, and may treat each Lender as the owner of that Lender's
      interest in the Obligations for all purposes of this Agreement until the
      Administrative Agent receives notice of the assignment or transfer
      thereof, in form satisfactory to the Administrative Agent, signed by that
      Lender;

                                      -51-
<PAGE>   57

                  (b) May consult with legal counsel (including in-house legal
      counsel), accountants (including in-house accountants) and other
      professionals or experts selected by it, or with legal counsel,
      accountants or other professionals or experts for Borrower and/or their
      Subsidiaries or the Lenders, and shall not be liable for any action taken
      or not taken by it in good faith in accordance with any advice of such
      legal counsel, accountants or other professionals or experts;

                  (c) Shall not be responsible to any Lender for any statement,
      warranty or representation made in any of the Loan Documents or in any
      notice, certificate, report, request or other statement (written or oral)
      given or made in connection with any of the Loan Documents;

                  (d) Except to the extent expressly set forth in the Loan
      Documents, shall have no duty to ask or inquire as to the performance or
      observance by Borrower or its Subsidiaries of any of the terms, conditions
      or covenants of any of the Loan Documents or to inspect any collateral or
      any Property, books or records of Borrower or their Subsidiaries;

                  (e) Will not be responsible to any Lender for the due
      execution, legality, validity, enforceability, genuineness, effectiveness,
      sufficiency or value of any Loan Document, any other instrument or writing
      furnished pursuant thereto or in connection therewith, or any collateral;

                  (f) Will not incur any liability by acting or not acting in
      reliance upon any Loan Document, notice, consent, certificate, statement,
      request or other instrument or writing believed in good faith by it to be
      genuine and signed or sent by the proper party or parties; and

                  (g) Will not incur any liability for any arithmetical error in
      computing any amount paid or payable by Borrower or any Subsidiary or
      Affiliate thereof or paid or payable to or received or receivable from any
      Lender under any Loan Document, including, without limitation, principal,
      interest, commitment fees, Advances and other amounts; provided that,
      promptly upon discovery of such an error in computation, the
      Administrative Agent, the Lenders and (to the extent applicable) Borrower
      and/or its Subsidiaries or Affiliates shall make such adjustments as are
      necessary to correct such error and to restore the parties to the position
      that they would have occupied had the error not occurred.

            10.7 Indemnification. Each Lender shall, ratably in accordance with
its Pro Rata Share of the Commitment (if the Commitment is then in effect) or in
accordance with its proportion of the aggregate Indebtedness then evidenced by
the Notes (if the Commitment has then been terminated), indemnify and hold the
Administrative Agent and its directors, officers, agents, employees and
attorneys harmless against any and all liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses or disbursements
of any kind or nature whatsoever (including reasonable attorneys' fees and
disbursements and allocated costs of attorneys employed by the Administrative
Agent) that may be imposed on, incurred by or asserted against it or them in any
way relating to or arising out of the Loan Documents (other than losses incurred
by reason of the failure of Borrower to pay the Indebtedness represented by the
Notes) or any action taken or not taken by it as Administrative Agent
thereunder, except such as result from its own gross negligence or willful
misconduct. Without limitation on the foregoing, each Lender shall reimburse the
Administrative Agent upon demand for that Lender's Pro Rata Share of any
out-of-pocket cost or expense incurred by the Administrative Agent in connection
with the negotiation, preparation, execution, delivery, amendment, waiver,
restructuring, reorganization (including a bankruptcy reorganization),
enforcement or attempted enforcement of the Loan Documents, to the extent that
Borrower or any other Party is required by Section 11.3 to pay that cost or
expense

                                      -52-
<PAGE>   58

but fails to do so upon demand. Nothing in this Section 10.7 shall entitle the
Administrative Agent or any indemnitee referred to above to recover any amount
from the Lenders if and to the extent that such amount has theretofore been
recovered from Borrower or any of its Subsidiaries. To the extent that the
Administrative Agent or any indemnitee referred to above is later reimbursed
such amount by Borrower or any of its Subsidiaries, it shall return the amounts
paid to it by the Lenders in respect of such amount.

            10.8 Successor Administrative Agent. The Administrative Agent may,
and at the request of the Requisite Lenders shall, resign as Administrative
Agent upon reasonable notice to the Lenders and Borrower effective upon
acceptance of appointment by a successor Administrative Agent. If the
Administrative Agent shall resign as Administrative Agent under this Agreement,
the Requisite Lenders shall appoint from among the Lenders a successor
Administrative Agent for the Lenders, which successor Administrative Agent shall
be approved by Borrower (and such approval shall not be unreasonably withheld or
delayed). If no successor Administrative Agent is appointed prior to the
effective date of the resignation of the Administrative Agent, the
Administrative Agent may appoint, after consulting with the Lenders and
Borrower, a successor Administrative Agent from among the Lenders. Upon the
acceptance of its appointment as successor Administrative Agent hereunder, such
successor Administrative Agent shall succeed to all the rights, powers and
duties of the retiring Administrative Agent and the term "Administrative Agent"
shall mean such successor Administrative Agent and the retiring Administrative
Agent's appointment, powers and duties as Administrative Agent shall be
terminated. After any retiring Administrative Agent's resignation hereunder as
Administrative Agent, the provisions of this Article 10, and Sections 11.3,
11.11 and 11.22, shall inure to its benefit as to any actions taken or omitted
to be taken by it while it was Administrative Agent under this Agreement.
Notwithstanding the foregoing, if (a) the Administrative Agent has not been paid
its agency fees under Section 3.2 or has not been reimbursed for any expense
reimbursable to it under Section 11.3, in either case for a period of at least
one (1) year and (b) no successor Administrative Agent has accepted appointment
as Administrative Agent by the date which is thirty (30) days following a
retiring Administrative Agent's notice of resignation, the retiring
Administrative Agent's resignation shall nevertheless thereupon become effective
and the Lenders shall perform all of the duties of the Administrative Agent
hereunder until such time, if any, as the Requisite Lenders appoint a successor
Administrative Agent as provided for above.

            10.9 No Obligations of Borrower. Nothing contained in this Article
10 shall be deemed to impose upon Borrower any obligation in respect of the due
and punctual performance by the Administrative Agent of its obligations to the
Lenders under any provision of this Agreement, and Borrower shall have no
liability to the Administrative Agent or any of the Lenders in respect of any
failure by the Administrative Agent or any Lender to perform any of its
obligations to the Administrative Agent or the Lenders under this Agreement.
Without limiting the generality of the foregoing, where any provision of this
Agreement relating to the payment of any amounts due and owing under the Loan
Documents provides that such payments shall be made by Borrower to the
Administrative Agent for the account of the Lenders, Borrower's obligations to
the Lenders in respect of such payments shall be deemed to be satisfied upon the
making of such payments to the Administrative Agent in the manner provided by
this Agreement. In addition, Borrower may rely on a written statement by the
Administrative Agent to the effect that it has obtained the written consent of
the Requisite Lenders or all of the Lenders, as applicable under Section 11.2,
in connection with a waiver, amendment, consent, approval or other action by the
Lenders hereunder, and shall have no obligation to verify or confirm the same.

                                      -53-
<PAGE>   59
                                   Article 11
                                  MISCELLANEOUS

            11.1 Cumulative Remedies; No Waiver. The rights, powers, privileges
and remedies of the Administrative Agent and the Lenders provided herein or in
any Note or other Loan Document are cumulative and not exclusive of any right,
power, privilege or remedy provided by Law or equity. No failure or delay on the
part of the Administrative Agent or any Lender in exercising any right, power,
privilege or remedy may be, or may be deemed to be, a waiver thereof; nor may
any single or partial exercise of any right, power, privilege or remedy preclude
any other or further exercise of the same or any other right, power, privilege
or remedy. The terms and conditions of Article 8 hereof are inserted for the
sole benefit of the Administrative Agent and the Lenders; the same may be waived
in whole or in part, with or without terms or conditions, in respect of any Loan
without prejudicing the Administrative Agent's or the Lenders' rights to assert
them in whole or in part in respect of any other Loan.

            11.2 Amendments; Consents. No amendment, modification, supplement,
extension, termination or waiver of any provision of this Agreement or any other
Loan Document, no approval or consent thereunder, and no consent to any
departure by Borrower or any other Party therefrom, may in any event be
effective unless in writing signed by the Administrative Agent with the written
approval of the Requisite Lenders (and, in the case of any amendment,
modification or supplement of or to any Loan Document to which Borrower is a
Party, signed by Borrower, and, in the case of any amendment, modification or
supplement to Article 10, signed by the Administrative Agent), and then only in
the specific instance and for the specific purpose given; and, without the
approval in writing of all the Lenders, no amendment, modification, supplement,
termination, waiver or consent may be effective:

                  (a) To amend or modify the principal of, or the amount of
      principal or principal prepayments on, any Note, to reduce the rate of
      interest payable on any Note, or the amount of the Commitment or the Pro
      Rata Share of any Lender or the amount of any commitment fee payable to
      any Lender, or any other fee or amount payable to any Lender under the
      Loan Documents or to waive an Event of Default consisting of the failure
      of Borrower to pay when due principal, interest or any fee;

                  (b) To postpone any date fixed for any payment of principal
      of, prepayment of principal of or any installment of interest on, any Note
      or any installment of any fee, or to extend the term of the Commitment;

                  (c) To amend the provisions of the definition of
      "Requisite Lenders" or "Maturity Date"; or

                  (d) To release any material Subsidiary Guarantor from the
      Subsidiary Guaranty; or

                  (e) To amend or waive Article 8 or this Section 11.2; or

                  (f) To amend any provision of this Agreement that expressly
      requires the consent or approval of all the Lenders.

Any amendment, modification, supplement, termination, waiver or consent pursuant
to this Section 11.2 shall apply equally to, and shall be binding upon, all the
Lenders and the Administrative Agent.

                                      -54-
<PAGE>   60

            11.3 Costs, Expenses and Taxes. Borrower shall pay within twenty
(20) Banking Days after demand, accompanied by an invoice therefor, the
reasonable costs and expenses of the Administrative Agent in connection with the
negotiation, preparation, syndication, execution and delivery of the Loan
Documents and any amendment thereto or waiver thereof. Borrower shall also pay
on demand, accompanied by an invoice therefor, the reasonable costs and expenses
of the Administrative Agent and the Lenders in connection with the refinancing,
restructuring, reorganization (including a bankruptcy reorganization) and
enforcement or attempted enforcement of the Loan Documents, and any matter
related thereto. The foregoing costs and expenses shall include filing fees,
recording fees, title insurance fees, appraisal fees, search fees, and other
out-of-pocket expenses and the reasonable fees and out-of-pocket expenses of any
legal counsel (including reasonably allocated costs of legal counsel employed by
the Administrative Agent or any Lender), independent public accountants and
other outside experts retained by the Administrative Agent or any Lender,
whether or not such costs and expenses are incurred or suffered by the
Administrative Agent or any Lender in connection with or during the course of
any bankruptcy or insolvency proceedings of any of Borrower or any Subsidiary
thereof. Borrower shall pay any and all documentary and other taxes that may be
payable in connection with the execution and delivery of the Loan Documents and
agrees to hold harmless and indemnify on the terms set forth in 11.11 the
Administrative Agent and the Lenders from and against any and all loss,
liability or legal or other expense with respect to or resulting from any delay
in paying or failure to pay any such tax, cost, expense, fee or charge or that
any of them may suffer or incur by reason of the failure of any Party to perform
any of its Obligations.

            11.4 Nature of Lenders' Obligations. The obligations of the Lenders
hereunder are several and not joint or joint and several. Nothing contained in
this Agreement or any other Loan Document and no action taken by the
Administrative Agent or the Lenders or any of them pursuant hereto or thereto
may, or may be deemed to, make the Lenders a partnership, an association, a
joint venture or other entity, either among themselves or with the Borrower or
any Affiliate of any of Borrower. A default by any Lender will not increase the
Pro Rata Share of the Commitments attributable to any other Lender. Any Lender
not in default may, if it desires, assume in such proportion as the
nondefaulting Lenders agree the obligations of any Lender in default, but is not
obligated to do so. The Administrative Agent agrees that it will use its best
efforts either to induce promptly the other Lenders to assume the obligations of
a Lender in default or to obtain promptly another Lender, reasonably
satisfactory to Borrower, to replace such a Lender in default.

            11.5 Survival of Representations and Warranties. All representations
and warranties contained herein or in any other Loan Document, or in any
certificate or other writing delivered by or on behalf of any one or more of the
Parties to any Loan Document, will survive the making of the Loans hereunder and
the execution and delivery of the Notes, and have been or will be relied upon by
the Administrative Agent and each Lender, notwithstanding any investigation made
by the Administrative Agent or any Lender or on their behalf.

            11.6 Notices. Except as otherwise expressly provided in the Loan
Documents, all notices, requests, demands, directions and other communications
provided for hereunder or under any other Loan Document must be in writing and
must be mailed, telegraphed, telecopied, dispatched by commercial courier or
delivered to the appropriate party at the address set forth on the signature
pages of this Agreement or other applicable Loan Document or, as to any party to
any Loan Document, at any other address as may be designated by it in a written
notice sent to all other parties to such Loan Document in accordance with this
Section. Except as otherwise expressly provided in any Loan Document, if any
notice, request, demand, direction or other communication required or permitted
by any Loan Document is given by mail it will be effective on the earlier of
receipt or the fourth Banking Day after deposit in the United States mail with
first class or airmail postage prepaid; if given by telegraph or cable, when
delivered to the telegraph company with charges prepaid; if given

                                      -55-
<PAGE>   61

by telecopier, when sent; if dispatched by commercial courier, on the scheduled
delivery date; or if given by personal delivery, when delivered.

            11.7 Execution of Loan Documents. Unless the Administrative Agent
otherwise specifies with respect to any Loan Document, (a) this Agreement and
any other Loan Document may be executed in any number of counterparts and any
party hereto or thereto may execute any counterpart, each of which when executed
and delivered will be deemed to be an original and all of which counterparts of
this Agreement or any other Loan Document, as the case may be, when taken
together will be deemed to be but one and the same instrument and (b) execution
of any such counterpart may be evidenced by a telecopier transmission of the
signature of such party. The execution of this Agreement or any other Loan
Document by any party hereto or thereto will not become effective until
counterparts hereof or thereof, as the case may be, have been executed by all
the parties hereto or thereto.

            11.8  Binding Effect; Assignment.

                  (a) This Agreement and the other Loan Documents to which
      Borrower is a Party will be binding upon and inure to the benefit of
      Borrower, the Administrative Agent, each of the Lenders, and their
      respective successors and assigns, except that Borrower may not assign its
      rights hereunder or thereunder or any interest herein or therein without
      the prior written consent of all the Lenders. Each Lender represents that
      it is not acquiring its Note with a view to the distribution thereof
      within the meaning of the Securities Act of 1933, as amended (subject to
      any requirement that disposition of such Note must be within the control
      of such Lender). Any Lender may at any time pledge its Note or any other
      instrument evidencing its rights as a Lender under this Agreement to a
      Federal Reserve Bank, but no such pledge shall release that Lender from
      its obligations hereunder or grant to such Federal Reserve Bank the rights
      of a Lender hereunder absent foreclosure of such pledge.

                  (b) From time to time following the Closing Date, each Lender
      may assign to one or more Eligible Assignees all or any portion of its Pro
      Rata Share of the Commitment; provided that (i) such Eligible Assignee, if
      not then a Lender or an Affiliate of the assigning Lender, shall be
      approved by the Administrative Agent and (if no Event of Default then
      exists) Borrower (neither of which approvals shall be unreasonably
      withheld or delayed), (ii) such assignment shall be evidenced by a
      Commitment Assignment and Acceptance, a copy of which shall be furnished
      to the Administrative Agent as hereinbelow provided, (iii) except in the
      case of an assignment to an Affiliate of the assigning Lender, to another
      Lender or of the entire remaining Commitment of the assigning Lender, the
      assignment shall not assign a Pro Rata Share of the Commitment that is
      equivalent to less than $5,000,000, (iv) [Intentionally Omitted]; (v)
      [Intentionally Omitted], and (vi) the effective date of any such
      assignment shall be as specified in the Commitment Assignment and
      Acceptance, but not earlier than the date which is five (5) Banking Days
      after the date the Administrative Agent has received the Commitment
      Assignment and Acceptance, unless otherwise consented to by the
      Administrative Agent. Upon the effective date of such Commitment
      Assignment and Acceptance, the Eligible Assignee named therein shall be a
      Lender for all purposes of this Agreement, with the Pro Rata Share of the
      Commitment therein set forth and, to the extent of such Pro Rata Share,
      the assigning Lender shall be released from its further obligations under
      this Agreement. Borrower agrees that it shall execute and deliver (against
      delivery by the assigning Lender to Borrower of its Note) to such assignee
      Lender, a Note evidencing that assignee Lender's Pro Rata Share of the
      Commitment, and to the assigning Lender, a Note evidencing the remaining
      balance Pro Rata Share retained by the assigning Lender.

                  (c) By executing and delivering a Commitment Assignment and
      Acceptance, the Eligible Assignee thereunder acknowledges and agrees that:
      (i) other than the representation and

                                      -56-
<PAGE>   62

      warranty that it is the legal and beneficial owner of the Pro Rata Share
      of the Commitment being assigned thereby free and clear of any adverse
      claim, the assigning Lender has made no representation or warranty and
      assumes no responsibility with respect to any statements, warranties or
      representations made in or in connection with this Agreement or the
      execution, legality, validity, enforceability, genuineness or
      sufficiency of this Agreement or any other Loan Document; (ii) the
      assigning Lender has made no representation or warranty and assumes no
      responsibility with respect to the financial condition of Borrower or
      the performance by Borrower of the Obligations; (iii) it has received a
      copy of this Agreement, together with copies of the most recent
      financial statements delivered pursuant to Section 7.1 and such other
      documents and information as it has deemed appropriate to make its own
      credit analysis and decision to enter into such Commitment Assignment
      and Acceptance; (iv) it will, independently and without reliance upon
      the Administrative Agent or any Lender and based on such documents and
      information as it shall deem appropriate at the time, continue to make
      its own credit decisions in taking or not taking action under this
      Agreement; (v) it appoints and authorizes the Administrative Agent to
      take such action and to exercise such powers under this Agreement as are
      delegated to the Administrative Agent by this Agreement; and (vi) it
      will perform in accordance with their terms all of the obligations which
      by the terms of this Agreement are required to be performed by it as a
      Lender.

                  (d) The Administrative Agent shall maintain at the
      Administrative Agent's Office a copy of each Commitment Assignment and
      Acceptance delivered to it and a register (the "Register") of the names
      and address of each of the Lenders and the Pro Rata Share of the
      Commitment held by each Lender, giving effect to each Commitment
      Assignment and Acceptance. The Register shall be available during normal
      business hours for inspection by Borrower or any Lender upon reasonable
      prior notice to the Administrative Agent. After receipt of a completed
      Commitment Assignment and Acceptance executed by any Lender and an
      Eligible Assignee, and receipt of an assignment fee of $3,000 from such
      Lender or Eligible Assignee, the Administrative Agent shall, promptly
      following the effective date thereof, provide to Borrower and the Lenders
      a revised Schedule 1.1 giving effect thereto. Borrower, the Administrative
      Agent and the Lenders shall deem and treat the Persons listed as Lenders
      in the Register as the holders and owners of the Pro Rata Share of the
      Commitment listed therein for all purposes hereof, and no assignment or
      transfer of any such Pro Rata Share of the Commitment shall be effective,
      in each case unless and until a Commitment Assignment and Acceptance
      effecting the assignment or transfer thereof shall have been accepted by
      the Administrative Agent and recorded in the Register as provided above.
      Prior to such recordation, all amounts owed with respect to the applicable
      Pro Rata Share of the Commitment shall be owed to the Lender listed in the
      Register as the owner thereof, and any request, authority or consent of
      any Person who, at the time of making such request or giving such
      authority or consent, is listed in the Register as a Lender shall be
      conclusive and binding on any subsequent holder, assignee or transferee of
      the corresponding Pro Rata Share of the Commitment.

                  (e) Each Lender may from time to time grant participations to
      one or more banks or other financial institutions in a portion of its Pro
      Rata Share of the Commitment; provided, however, that (i) such Lender's
      obligations under this Agreement shall remain unchanged, (ii) such Lender
      shall remain solely responsible to the other parties hereto for the
      performance of such obligations, (iii) the participating banks or other
      financial institutions shall not be a Lender hereunder for any purpose
      except, if the participation agreement so provides, for the purposes of
      Sections 3.7, 3.8, 11.11 and 11.22 but only to the extent that the cost of
      such benefits to Borrower does not exceed the cost which Borrower would
      have incurred in respect of such Lender absent the participation, (iv)
      Borrower, the Administrative Agent and the other Lenders shall continue to
      deal solely and directly with such Lender in connection with such Lender's
      rights and obligations under this Agreement, (v) the

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<PAGE>   63

      participation interest shall be expressed as a percentage of the
      granting Lender's Pro Rata Share of the Commitment as it then exists and
      shall not restrict an increase in the Commitment, or in the granting
      Lender's Pro Rata Share of the Commitment, so long as the amount of the
      participation interest is not affected thereby and (vi) the consent of
      the holder of such participation interest shall not be required for
      amendments or waivers of provisions of the Loan Documents other than
      those which (A) extend the Maturity Date or any other date upon which
      any payment of money is due to the Lenders, (B) reduce the rate of
      interest on the Notes, any fee or any other monetary amount payable to
      the Lenders, (C) reduce the amount of any installment of principal due
      under the Notes or (D) release any material Subsidiary Guarantor from
      the Subsidiary Guaranty.

                  (f) Notwithstanding anything to the contrary contained herein,
      any Lender (a "Granting Lender") may grant to a special purpose conduit
      funding vehicle (an "SPC") identified as such in a writing delivered from
      time to time by the Granting Lender to the Administrative Agent and
      Borrower, the option to fund all or any part of any Loan that such
      Granting Lender would otherwise be obligated to fund pursuant to this
      Agreement; provided that (i) nothing herein shall constitute a commitment
      by an SPC to fund any Loan, (ii) the Granting Lender shall remain
      obligated to fund such Loan pursuant to the terms hereof unless and until
      the SPC actually funds such Loan in full, (iii) the SPC shall be subject
      to all of the restrictions hereunder applicable to its Granting Lender and
      shall have no rights hereunder beyond any derived from its Granting
      Lender, (iv) the Administrative Agent, Borrower and the other Lenders
      shall continue to deal only with the Granting Lender respecting this
      Agreement and no such option shall, and no such funding shall (except as
      to the funding of that Loan), release the Granting Lender of any
      obligation hereunder, and (v) such SPC must be a party to an agreement
      with the Granting Lender containing provisions substantially similar to
      Section 11.14 (provided, however, that such agreement may permit such SPC
      to disclose on a confidential basis on terms substantially similar to
      Section 11.14 any non-public information relating to its funding of Loans
      to any rating agency, commercial paper dealer or provider of any surety or
      guarantee to such SPC) and provide a copy thereof to the Administrative
      Agent and Borrower. The Loans made by an SPC shall be evidenced by the
      Note of its Granting Lender. Payments made by Borrower to a Granting
      Lender in respect of a Loan made by its SPC shall be deemed payments made
      to such SPC and neither the Administrative Agent nor Borrower shall have
      any responsibility to an SPC as to any payments made to its Granting
      Lender. Any consent or approval given by a Granting Lender pursuant to
      Section 11.2 shall be conclusive as against any SPC of that Granting
      Lender, notwithstanding the failure of the SPC to approve such consent or
      approval. The funding of a Loan by an SPC hereunder shall utilize the Pro
      Rata Share of the Commitment of the Granting Lender to the same extent as
      if such Loan were funded by such Granting Lender. No SPC shall be liable
      for any indemnity or payment under this Agreement (all liability for which
      shall remain with the Granting Lender). This Section 11.8(f) may not be
      amended without the written consent of each Granting Lender, all or any
      part of whose Loan is being funded by an SPC designated to the
      Administrative Agent and Borrower as provided above as of the time of such
      amendment.

            11.9 Right of Setoff. If an Event of Default has occurred and is
continuing, the Administrative Agent or any Lender may exercise its rights under
applicable Laws and, to the extent permitted by applicable Laws, apply any funds
in any deposit account maintained with it by Borrower and/or any Property of
Borrower in its possession against the Obligations.

            11.10 Sharing of Setoffs. Each Lender severally agrees that if it,
through the exercise of any right of setoff, banker's lien or counterclaim
against Borrower, or otherwise, receives payment of the Obligations held by it
that is ratably more than any other Lender, through any means, receives in
payment of the Obligations held by that Lender, then, subject to applicable
Laws: (a) the Lender exercising the right of setoff,

                                      -58-
<PAGE>   64

banker's lien or counterclaim or otherwise receiving such payment shall
purchase, and shall be deemed to have simultaneously purchased, from each of the
other Lenders a participation in the Obligations held by the other Lenders and
shall pay to the other Lenders a purchase price in an amount so that the share
of the Obligations held by each Lender after the exercise of the right of
setoff, banker's lien or counterclaim or receipt of payment shall be in the same
proportion that existed prior to the exercise of the right of setoff, banker's
lien or counterclaim or receipt of payment; and (b) such other adjustments and
purchases of participations shall be made from time to time as shall be
equitable to ensure that all of the Lenders share any payment obtained in
respect of the Obligations ratably in accordance with each Lender's share of the
Obligations immediately prior to, and without taking into account, the payment;
provided that, if all or any portion of a disproportionate payment obtained as a
result of the exercise of the right of setoff, banker's lien, counterclaim or
otherwise is thereafter recovered from the purchasing Lender by Borrower or any
Person claiming through or succeeding to the rights of Borrower, the purchase of
a participation shall be rescinded and the purchase price thereof shall be
restored to the extent of the recovery, but without interest. Each Lender that
purchases a participation in the Obligations pursuant to this Section 11.10
shall from and after the purchase have the right to give all notices, requests,
demands, directions and other communications under this Agreement with respect
to the portion of the Obligations purchased to the same extent as though the
purchasing Lender were the original owner of the Obligations purchased. Borrower
expressly consents to the foregoing arrangements and agrees that any Lender
holding a participation in an Obligation so purchased pursuant to this Section
11.10 may exercise any and all rights of setoff, banker's lien or counterclaim
with respect to the participation as fully as if the Lender were the original
owner of the Obligation purchased.

            11.11 Indemnity by Borrower. Borrower agrees to indemnify, save and
hold harmless the Administrative Agent and each Lender and their respective
Affiliates, directors, officers, agents, attorneys and employees (collectively
the "Indemnitees") from and against: (a) any and all claims, demands, actions or
causes of action (except a claim, demand, action, or cause of action for any
amount excluded from the definition of "Taxes" in Section 3.12(d)) if the claim,
demand, action or cause of action arises out of or relates to any act or
omission (or alleged act or omission) of Borrower, its Affiliates or any of its
officers, directors or stockholders relating to the Commitment, the use or
contemplated use of proceeds of any Loan, or the relationship of Borrower and
the Lenders under this Agreement; (b) any administrative or investigative
proceeding by any Governmental Agency arising out of or related to a claim,
demand, action or cause of action described in clause (a) above; and (c) any and
all liabilities, losses, costs or expenses (including reasonable attorneys' fees
and the reasonably allocated costs of attorneys employed by any Indemnitee and
disbursements of such attorneys and other professional services) that any
Indemnitee suffers or incurs as a result of the assertion of any foregoing
claim, demand, action or cause of action; provided that no Indemnitee shall be
entitled to indemnification for any loss caused by its own gross negligence or
willful misconduct or for any loss asserted against it by another Indemnitee. If
any claim, demand, action or cause of action is asserted against any Indemnitee,
such Indemnitee shall promptly notify Borrower, but the failure to so promptly
notify Borrower shall not affect Borrower's obligations under this Section
unless such failure materially prejudices Borrower's right to participate in the
contest of such claim, demand, action or cause of action, as hereinafter
provided. Such Indemnitee may (and shall, if requested by Borrower in writing)
contest the validity, applicability and amount of such claim, demand, action or
cause of action and shall permit Borrower to participate in such contest. Any
Indemnitee that proposes to settle or compromise any claim or proceeding for
which Borrower may be liable for payment of indemnity hereunder shall give
Borrower written notice of the terms of such proposed settlement or compromise
reasonably in advance of settling or compromising such claim or proceeding and
shall obtain Borrower's prior consent (which shall not be unreasonably withheld
or delayed). In connection with any claim, demand, action or cause of action
covered by this Section 11.11 against more than one Indemnitee, all such
Indemnitees shall be represented by the same legal counsel (which may be a law
firm engaged by the Indemnitees or attorneys employed by an Indemnitee or a
combination of the foregoing) selected by the Indemnitees and reasonably
acceptable to Borrower; provided, that if such legal counsel determines in good

                                      -59-
<PAGE>   65

faith that representing all such Indemnitees would or could result in a conflict
of interest under Laws or ethical principles applicable to such legal counsel or
that a defense or counterclaim is available to an Indemnitee that is not
available to all such Indemnitees, then to the extent reasonably necessary to
avoid such a conflict of interest or to permit unqualified assertion of such a
defense or counterclaim, each affected Indemnitee shall be entitled to separate
representation by legal counsel selected by that Indemnitee and reasonably
acceptable to Borrower, with all such legal counsel using reasonable efforts to
avoid unnecessary duplication of effort by counsel for all Indemnitees; and
further provided that the Administrative Agent (as an Indemnitee) shall at all
times be entitled to representation by separate legal counsel (which may be a
law firm or attorneys employed by the Administrative Agent or a combination of
the foregoing). Any obligation or liability of Borrower to any Indemnitee under
this Section 11.11 shall survive the expiration or termination of this Agreement
and the repayment of all Loans and the payment and performance of all other
Obligations owed to the Lenders.

            11.12 Nonliability of the Lenders.  Borrower acknowledges and
agrees that:

                  (a) Any inspections of any Property of Borrower made by or
      through the Administrative Agent or the Lenders are for purposes of
      administration of the Loan only and Borrower is not entitled to rely upon
      the same (whether or not such inspections are at the expense of Borrower);

                  (b) By accepting or approving anything required to be
      observed, performed, fulfilled or given to the Administrative Agent or the
      Lenders pursuant to the Loan Documents, neither the Administrative Agent
      nor the Lenders shall be deemed to have warranted or represented the
      sufficiency, legality, effectiveness or legal effect of the same, or of
      any term, provision or condition thereof, and such acceptance or approval
      thereof shall not constitute a warranty or representation to anyone with
      respect thereto by the Administrative Agent or the Lenders;

                  (c) The relationship between Borrower and the Administrative
      Agent and the Lenders is, and shall at all times remain, solely that of
      borrowers and lenders; neither the Administrative Agent nor the Lenders
      shall under any circumstance be construed to be partners or joint
      venturers of Borrower or its Affiliates; neither the Administrative Agent
      nor the Lenders shall under any circumstance be deemed to be in a
      relationship of confidence or trust or a fiduciary relationship with
      Borrower or its Affiliates, or to owe any fiduciary duty to Borrower or
      its Affiliates; neither the Administrative Agent nor the Lenders undertake
      or assume any responsibility or duty to Borrower or its Affiliates to
      select, review, inspect, supervise, pass judgment upon or inform Borrower
      or its Affiliates of any matter in connection with their Property or the
      operations of Borrower or its Affiliates; Borrower and its Affiliates
      shall rely entirely upon their own judgment with respect to such matters;
      and any review, inspection, supervision, exercise of judgment or supply of
      information undertaken or assumed by the Administrative Agent or the
      Lenders in connection with such matters is solely for the protection of
      the Administrative Agent and the Lenders and neither Borrower nor any
      other Person is entitled to rely thereon; and

                  (d) The Administrative Agent and the Lenders shall not be
      responsible or liable to any Person for any loss, damage, liability or
      claim of any kind relating to injury or death to Persons or damage to
      Property caused by the actions, inaction or negligence of Borrower and/or
      its Affiliates and Borrower hereby indemnify and hold the Administrative
      Agent and the Lenders harmless on the terms set forth in Section 11.11
      from any such loss, damage, liability or claim.

            11.13 No Third Parties Benefited. This Agreement is made for the
purpose of defining and setting forth certain obligations, rights and duties of
Borrower, the Administrative Agent and the Lenders in

                                      -60-
<PAGE>   66

connection with the Loans, and is made for the sole benefit of Borrower and its
Subsidiaries, the Administrative Agent and the Lenders, and the Administrative
Agent's and the Lenders' successors and assigns. Except as provided in Sections
11.8 and 11.11, no other Person shall have any rights of any nature hereunder or
by reason hereof.

            11.14 Confidentiality. Each Lender agrees to hold any confidential
information that it may receive from Borrower pursuant to this Agreement in
confidence, except for disclosure: (a) to other Lenders or Affiliates of a
Lender; (b) to legal counsel and accountants for Borrower or any Lender; (c) to
other professional advisors to Borrower or any Lender, provided that the
recipient has accepted such information subject to a confidentiality agreement
substantially similar to this Section 11.14; (d) to regulatory officials having
jurisdiction over that Lender; (e) as required by Law or legal process, provided
that each Lender agrees to notify Borrower of any such disclosures unless
prohibited by applicable Laws, or in connection with any legal proceeding to
which that Lender and Borrower are adverse parties; and (f) to another financial
institution in connection with a disposition or proposed disposition to that
financial institution of all or part of that Lender's interests hereunder or a
participation interest in its Notes, provided that the recipient has accepted
such information subject to a confidentiality agreement substantially similar to
this Section 11.14. For purposes of the foregoing, "confidential information"
shall mean any information respecting Borrower or its Subsidiaries reasonably
considered by Borrower to be confidential, other than (i) information previously
filed with any Governmental Agency and available to the public, (ii) information
previously published in any public medium from a source other than, directly or
indirectly, that Lender, and (iii) information previously disclosed by Borrower
to any Person not associated with Borrower which does not owe a professional
duty of confidentiality to Borrower or which has not executed an appropriate
confidentiality agreement with Borrower. Nothing in this Section shall be
construed to create or give rise to any fiduciary duty on the part of the
Administrative Agent or the Lenders to Borrower.

            11.15 Further Assurances. Borrower shall, at its expense and without
expense to the Lenders or the Administrative Agent, do, execute and deliver such
further acts and documents as the Requisite Lenders or the Administrative Agent
from time to time reasonably require for the assuring and confirming unto the
Lenders or the Administrative Agent of the rights hereby created or intended now
or hereafter so to be, or for carrying out the intention or facilitating the
performance of the terms of any Loan Document.

            11.16 Integration. This Agreement, together with the other Loan
Documents and the letter agreement referred to in Section 3.2, comprises the
complete and integrated agreement of the parties on the subject matter hereof
and supersedes all prior agreements, written or oral, on the subject matter
hereof. In the event of any conflict between the provisions of this Agreement
and those of any other Loan Document, the provisions of this Agreement shall
control and govern; provided that the inclusion of supplemental rights or
remedies in favor of the Administrative Agent or the Lenders in any other Loan
Document shall not be deemed a conflict with this Agreement. Each Loan Document
was drafted with the joint participation of the respective parties thereto and
shall be construed neither against nor in favor of any party, but rather in
accordance with the fair meaning thereof.

            11.17 Governing Law. Except to the extent otherwise provided
therein, each Loan Document shall be governed by, and construed and enforced in
accordance with, the Laws of New York applicable to contracts made and performed
in New York.

            11.18 Severability of Provisions. Any provision in any Loan Document
that is held to be inoperative, unenforceable or invalid as to any party or in
any jurisdiction shall, as to that party or jurisdiction, be inoperative,
unenforceable or invalid without affecting the remaining provisions or the
operation, enforceability or validity of that provision as to any other party or
in any other jurisdiction, and to this end the

                                      -61-
<PAGE>   67

provisions of all Loan Documents are declared to be severable.

            11.19 Headings. Article and Section headings in this Agreement and
the other Loan Documents are included for convenience of reference only and are
not part of this Agreement or the other Loan Documents for any other purpose.

            11.20 Time of the Essence.  Time is of the essence of the Loan
Documents.

            11.21 Foreign Lenders and Participants. Each Lender organized under
the Laws of a jurisdiction outside the United States of America or a State
thereof or the District of Columbia on or prior to the date of execution and
delivery of this Agreement (a) shall provide each of the Administrative Agent
and Borrower with two original and duly completed United States Internal Revenue
Forms 1001 or 4224, or successor applicable form, as appropriate, and any other
forms or certifications prescribed by the Internal Revenue Service (including a
Form W-8 or Form W-9, as appropriate) certifying that such Lender (i) is exempt
from or entitled to a reduced rate of withholding with respect to United States
federal income tax imposed on any payments under this Agreement or the Notes and
(ii) is exempt from United States backup withholding tax, (b) shall provide to
the Administrative Agent and Borrower two further copies of any such form or
certification from time to time thereafter as requested in writing by Borrower
and (c) shall obtain such extensions and renewals thereof as may reasonably be
requested in writing by Borrower or the Administrative Agent. If the form
provided by a Lender at the time such Lender first becomes a party to this
Agreement indicates a withholding rate in excess of zero, withholding taxes at
such rate shall be considered excluded from Non-Excluded Taxes, and such Lender
shall not be entitled to receive any payment under this Section 11.21 with
respect thereto, unless and until such Lender provides any additional forms or
certifications certifying that a lesser rate of withholding applied with respect
to such Lender under existing Law at the time such Lender first became a party
to this Agreement, whereupon withholding tax at such lesser rate only shall be
considered excluded from Non-Excluded Taxes for all subsequent periods. Each
Person that becomes a participant pursuant to Section 11.8 shall, upon the
effectiveness of the related transfer, be required to provide all of the forms
and certifications required pursuant to this Section 11.21, as appropriate, as
if such participant were a Lender; provided that such participant shall furnish
all such required forms and certifications to the Lender from which the related
participation was purchased.

            11.22 Hazardous Material Indemnity. Borrower hereby agrees to
indemnify, hold harmless and defend (by counsel reasonably satisfactory to the
Administrative Agent) the Administrative Agent and each of the Lenders and their
respective directors, officers, employees, agents, successors and assigns from
and against any and all claims, losses, damages, liabilities, fines, penalties,
charges, administrative and judicial proceedings and orders, judgments, remedial
action requirements, enforcement actions of any kind, and all costs and expenses
incurred in connection therewith (including but not limited to reasonable
attorneys' fees and the reasonably allocated costs of attorneys employed by the
Administrative Agent or any Lender, and expenses to the extent that the defense
of any such action has not been assumed by Borrower), arising directly or
indirectly out of (i) the presence on, in, under or about any Real Property of
any Hazardous Materials, or any releases or discharges of any Hazardous
Materials on, under or from any Real Property and (ii) any activity carried on
or undertaken on or off any Real Property by Borrower or any of its predecessors
in title, whether prior to or during the term of this Agreement, and whether by
Borrower or any predecessor in title or any employees, agents, contractors or
subcontractors of Borrower or any predecessor in title, in connection with the
handling, treatment, removal, storage, decontamination, clean-up, transport or
disposal of any Hazardous Materials at any time located or present on, in, under
or about any Real Property. The foregoing indemnity shall further apply to any
residual contamination on, in, under or about any Real Property, or affecting
any natural resources, and to any contamination of any Property or natural
resources arising in connection with the generation, use, handling, storage,
transport or disposal of any such Hazardous Materials, and irrespective of
whether any of such activities

                                      -62-
<PAGE>   68

were or will be undertaken in accordance with applicable Laws, but the foregoing
indemnity shall not apply to Hazardous Materials on any Real Property, the
presence of which is caused by the Administrative Agent or the Lenders. Borrower
hereby acknowledges and agrees that, notwithstanding any other provision of this
Agreement or any of the other Loan Documents to the contrary, the obligations of
Borrower under this Section shall be unlimited corporate obligations of Borrower
and shall not be secured by any Lien on any Real Property. Any obligation or
liability of Borrower to any Indemnitee under this Section 11.22 shall survive
the expiration or termination of this Agreement and the repayment of all Loans
and the payment and performance of all other Obligations owed to the Lenders.

            11.23 Waiver of Right to Trial by Jury. EACH PARTY TO THIS AGREEMENT
HEREBY EXPRESSLY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION
OR CAUSE OF ACTION ARISING UNDER ANY LOAN DOCUMENT OR IN ANY WAY CONNECTED WITH
OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTY HERETO OR ANY OF THEM WITH
RESPECT TO ANY LOAN DOCUMENT, OR THE TRANSACTIONS RELATED THERETO, IN EACH CASE
WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER SOUNDING IN CONTRACT OR
TORT OR OTHERWISE; AND EACH PARTY HEREBY AGREES AND CONSENTS THAT ANY SUCH
CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT
A JURY, AND THAT ANY PARTY TO THIS AGREEMENT MAY FILE AN ORIGINAL COUNTERPART OR
A COPY OF THIS SECTION WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE
SIGNATORIES HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY.

            11.24 Purported Oral Amendments. BORROWER EXPRESSLY ACKNOWLEDGES
THAT THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS MAY ONLY BE AMENDED OR
MODIFIED, OR THE PROVISIONS HEREOF OR THEREOF WAIVED OR SUPPLEMENTED, BY AN
INSTRUMENT IN WRITING THAT COMPLIES WITH SECTION 11.2. BORROWER AGREES THAT IT
WILL NOT RELY ON ANY COURSE OF DEALING, COURSE OF PERFORMANCE, OR ORAL OR
WRITTEN STATEMENTS BY ANY REPRESENTATIVE OF THE MANAGING AGENT OR ANY BANK THAT
DOES NOT COMPLY WITH SECTION 11.2 TO EFFECT AN AMENDMENT, MODIFICATION, WAIVER
OR SUPPLEMENT TO THIS AGREEMENT OR THE OTHER LOAN DOCUMENTS.

                 [Remainder of Page intentionally left blank]

                                      -63-
<PAGE>   69
            IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be duly executed as of the date first above written.

                              USEC INC.

                              By:
                                   ------------------------------

                                    ----------------------------
                                    [Printed Name and Title]

                              Address for notices:

                              USEC Inc.
                              6903 Rockledge Drive
                              Bethesda, Maryland   20817

                              Attn:  Chief Financial Officer

                              Telecopier:  (301) 564-3211
                              Telephone:   (301) 564-3344

<PAGE>   70

                             BANK OF AMERICA, N.A., as Administrative Agent

                             By:  /s/Gina Meador
                                  -------------------
                                  Gina Meador
                                  Vice President

                             Address for notices (other than Requests for Loan)

                             Bank of America, N.A.
                             Agency Management - Los Angeles
                             Mail Code CA9-706-11-03
                             555 South Flower Street, 11th Floor
                             Los Angeles, California  90071

                             Attn:  Gina Meador

                             Telecopier:  (213) 228-2299
                             Telephone:   (213) 228-5245

                             Address for notices (Requests for Loans and
                             Domestic and Offshore Lending Office):

                             Bank of America, N.A.
                             Agency Administrative Services
                             Mail Code CA4-706-05-09
                             1850 Gateway Boulevard, 5th Floor
                             Concord, California 94520

                             Attn:  Glenis Croucher

                             Telecopier:  (925) 969-2807
                             Telephone:   (925) 675-8447

<PAGE>   71

BANK OF AMERICA, N.A., as a Lender

By:  /s/ Dianne J. Prust
     -----------------------------------------
     Dianne J. Prust
     Principal

Address for notices (other than Requests for Loans):

Bank of America, N.A.
Credit Products
Mail Code CA9-706-11-07
555 South Flower Street, 11th Floor
Los Angeles, California  90071

Attn:  Dianne J. Prust, Principal

Telecopier:  (213) 623-1959
Telephone:   (213) 228-2435

<PAGE>   72

                             FIRST UNION NATIONAL BANK, as Syndication Agent
                             and as a Lender

                             By: /s/ Barbara Kauffmann Angel
                                -------------------------------------------
                                 Barbara Kauffmann Angel
                                 Vice President

                             Address for notices:

                             First Union National Bank
                             1970 Chain Bridge Road, 3rd Floor
                             McLean, Virginia  22102

                             Attn: Barbara K. Angel

                             Telecopier:  (703) 760-5457
                             Telephone:   (703) 760-6369

<PAGE>   73

WACHOVIA BANK, NATIONAL ASSOCIATION, as
Documentation Agent and as a Lender

By:  /s/ Keith A. Sherman
     -------------------------
     Keith A. Sherman
     Senior Vice President

Address for notices:

Wachovia Bank, National Association
227 Fayetteville Street, 8th Floor
Raleigh, North Carolina  27601

Attn:  Keith A. Sherman

Telecopier:  (919) 755-7879
Telephone:   (919) 755-7806

<PAGE>   74

                              MORGAN GUARANTY TRUST COMPANY OF NEW YORK, as
                              a Lender

                              By: /s/ Robert R. Bottamedi
                                  --------------------------
                                  Robert R. Bottamedi
                                  Vice President

                              Address for notice:

                              Morgan Guaranty Trust Company of New York
                              60 Wall Street
                              New York, New York 10260

                              Attn:  Robert R. Bottamedi

                              Telecopier:  (212) 648-5018
                              Telephone:   (212) 648-1349

<PAGE>   75

MELLON BANK, N.A., as a Lender

By:  /s/ Maria N. Sisto
     -------------------
     Maria N. Sisto
     Assistant Vice President

Address for notices:

Mellon Bank, N.A.
Corporate Banking
Mellon Bank Center, AIM 193-0750
Philadelphia, Pennsylvania 19103

Attn: Maria N. Sisto

Telecopier:  (215) 553-4899
Telephone:   (215) 553-3243

<PAGE>   76

                              THE NORTHERN TRUST COMPANY, as a Lender

                              By: /s/ Eric Strickland
                                  --------------------------
                                  Eric Strickland
                                  Vice President

                              Address for notices:

                              The Northern Trust Company
                              50 South LaSalle Street
                              Chicago, Illinois 60675

                              Attn:  Eric Strickland

                              Telecopier:  (312) 630-6062
                              Telephone:   (312) 444-5602

<PAGE>   77

THE BANK OF NOVA SCOTIA, as a Lender

By:
   ------------------------------

    -----------------------------
    [Printed Name and Title]

Address for notices:

The Bank of Nova Scotia
1 Liberty Plaza
New York, New York 10006

Attn: Timothy P. Finneran

Telecopier:  (212) 225-5090
Telephone:   (212) 225-5159

<PAGE>   78

                             FLEET NATIONAL BANK, as a Lender

                             By: /s/Stephen J. Hoffman
                                 --------------------------
                                 Stephen J. Hoffman
                                 Assistant Vice President

                             Address for notices:

                             Fleet National Bank
                             One Federal Street - MAOFD07J
                             Boston, Massachusetts 02110-2012

                             Attn: Stephen J. Hoffman

                             Telecopier:  (617) 346-0580
                             Telephone:   (617) 346-0571<PAGE>   1
                                                                    EXHIBIT 10.5

                               1700 PACIFIC AVENUE

                                  OFFICE LEASE

                                 BY AND BETWEEN

                            F/P/D MASTER LEASE, INC.

                                  AS LANDLORD,

                                       AND

                        SERVICE ASSET MANAGEMENT COMPANY

                                    AS TENANT

<PAGE>   2

                                TABLE OF CONTENTS

<TABLE>
<S>                                                                                                            <C>
 1.      Definitions and Basic Lease Provisions .................................................................1

 2.      Leased Premises ........................................................................................4

 3.      Lease Term .............................................................................................4

 4.      Acceptance of Leased Premises ..........................................................................5

 5.      Rent Payments ..........................................................................................5

 6.      Electricity ............................................................................................6

 7.      Services by Landlord ...................................................................................8

 8.      Service Interruptions ..................................................................................9

 9.      Operating Costs .......................................................................................10

10.      Security Deposit ......................................................................................12

11.      Assignment and Subletting .............................................................................12

12.      Repair and Maintenance by Tenant ......................................................................15

13.      Alterations and Additions by Tenant ...................................................................16

14.      Use and Occupancy .....................................................................................18

15.      Mechanics' Liens - Tenant's Obligations ...............................................................20

16.      Limitations on Liability of Landlord; Waiver ..........................................................21

17.      Tenant's Indemnification of Landlord: Assumption: Employees' Claims ...................................22

18.      Tenant's Insurance ....................................................................................23

19.      Landlord's Insurance ..................................................................................24

20.      Rights Reserved by Landlord ...........................................................................25
</TABLE>

                                                                          PAGE i

<PAGE>   3

<TABLE>
<S>                                                                                                            <C>
21.      Fire or Other Casualty ................................................................................27

22.      Condemnation ..........................................................................................27

23.      Taxes on Tenant's Property ............................................................................28

24.      Waiver of Subrogation .................................................................................29

25.      Surrender Upon Termination or Expiration; Holdover ....................................................29

26.      Removal of Tenant's Property ..........................................................................30

27.      Events of Default .....................................................................................31

28.      Landlord's Remedies ...................................................................................32

29.      No Implied Waiver .....................................................................................34

30.      Waiver by Tenant ......................................................................................35

31.      Attorneys' Fees and Legal Expenses ....................................................................35

32.      Subordination .........................................................................................35

33.      Quiet Enjoyment .......................................................................................36

34.      Notice of Landlord's Default ..........................................................................37

35.      Rules and Regulations .................................................................................37

36.      Estoppel Certificate ..................................................................................37

37.      Notices ...............................................................................................37

38.      Hazardous Materials ...................................................................................38

39.      Business Purpose ......................................................................................39

40.      Severability ..........................................................................................39

41.      No Merger .............................................................................................39

42.      Force Majeure .........................................................................................40
</TABLE>

                                                                         PAGE ii

<PAGE>   4

<TABLE>
<S>                                                                                                            <C>
 43.      Brokerage; Mutual Indemnities .......................................................................40

 44.      Gender ..............................................................................................40

 45.      Joint and Several Liability .........................................................................41

 46.      No Representations ..................................................................................41

 47.      Entire Agreement; Amendments ........................................................................41

 48.      Paragraph Headings ..................................................................................41

 49.      Binding Effect ......................................................................................41

 50.      Exhibits ............................................................................................41

 51.      Counterparts ........................................................................................42

 52.      Rental Tax ..........................................................................................42

 53.      Parking .............................................................................................42

 54.      Tenant's Service Providers ..........................................................................43

 55.      Security Disclaimer .................................................................................43

 56.      Intentionally Deleted ...............................................................................44

 57.      Relocation of the Leased Premises ...................................................................44

 58.      Limitation of Actions ...............................................................................46

 59.      Execution and Approval of Lease .....................................................................46

 60.      Right of First Notice ...............................................................................46

 61.      Option to Extend Lease Term .........................................................................47
</TABLE>

                                                                        PAGE iii
<PAGE>   5

                                  OFFICE LEASE

         This Office Lease (this LEASE) is entered into as of May 20, 1998 (the
DATE OF THIS LEASE), by F/P/D Master Lease, Inc., a Texas corporation
(LANDLORD), and Service Asset Management Company, a North Carolina corporation
(TENANT).

1. DEFINITIONS AND BASIC LEASE PROVISIONS.

         Some of the basic provisions and defined terms of this Lease are as
follows:

         PROJECT:                         1700 Pacific Avenue, Dallas, Texas,
                                          including the LAND described on
                                          EXHIBIT B, the Building, the On-Site
                                          Garage, the concourse, lobbies,
                                          plazas, walkways, open spaces,
                                          landscaped areas, and similar public
                                          areas located on, above, beneath or
                                          immediately adjacent to the Land, and
                                          any truck accessways, loading docks,
                                          or similar facilities which serve the
                                          Building, the Off-Site Garage, and the
                                          Building's interest in pedestrian
                                          tunnels, skybridges or parking garages
                                          now or hereafter connecting the
                                          Building to any building or garage
                                          that may be located on any other block
                                          adjacent to or nearby the block in
                                          which the Building is located.

         BUILDING:                        The building located on the Land,
                                          known as 1700 Pacific Avenue, located
                                          at 1700 Pacific Avenue, Dallas, Texas
                                          75201.

         LEASED PREMISES:                 31,478 Rentable Square Feet as shown
                                          on EXHIBIT A. Suite 1400 on Floor 14
                                          of the Building and Suite 1500 on
                                          Floor 15 of the Building.

         TENANT'S PROPORTIONATE SHARE:    2.348%, determined by dividing the
                                          number of Rentable Square Feet
                                          contained in the Leased Premises by
                                          the Total Building Area. The Tenant's
                                          Proportionate Share shall change if
                                          the size of the Leased Premises
                                          changes as a result of expansions,
                                          reductions, or otherwise.

<PAGE>   6

         TOTAL BUILDING AREA:            1,340,481 Rentable Square Feet.

         MINIMUM RENT:                   $ 0.00 per month for months 1 through 6

                                         $ 39,347.50 per month for months 7
                                         through 42

                                         $ 44,593.83 per month for months 43
                                         through 66

                                         $ 47,217.00 per month for months 67
                                         through 90

                                         $ 52,463.33 per month for months 91
                                         through 126

         RENT:                           The Minimum Rent and all other amounts
                                         payable by Tenant to Landlord under
                                         this Lease, including Tenant's
                                         Proportionate Share of Total
                                         Electricity Costs for the Project and
                                         Excess Operating Costs.

         COMMENCEMENT DATE:              June 1, 1998. (See Paragraph 3)

         EXPIRATION DATE:                November 30, 2008. (See Paragraph 3)

         LEASE TERM:                     126 Months, ending on the Expiration
                                         Date.

         BASE YEAR FOR OPERATING COSTS:  Calendar year 1998.

         TENANT'S BROKER:                Trinity Advisory Group, Inc.

         LANDLORD'S BROKER:              Faison-Stone, Inc., a Texas
                                         corporation.

         SECURITY DEPOSIT:               $ N/A

         OFF-SITE GARAGE:                The approximately 1400 space parking
                                         garage on the western end of the block
                                         bounded by Harwood, Pearl, Main, and
                                         Elm Streets in Dallas, Texas.

         ON-SITE GARAGE:                 The approximately 300 space parking
                                         garage that is part of the Building.

                                                                         PAGE 2
<PAGE>   7

         PARKING:                         4 spaces (Reserved or Unreserved) in
                                          the On-Site Garage, 27 Unreserved
                                          spaces in the Off-Site Garage, and,
                                          subject to availability up to 60
                                          additional unreserved spaces in the
                                          Off-Site Garage on a month-to-month
                                          basis. (See Paragraph 53)

         PERMITTED USE:                   General business offices.

         TENANT PARTY(IES):               Tenant and its directors,
                                          shareholders, partners, trustees,
                                          members, agents, contractors,
                                          subcontractors, employees, licensees,
                                          servants, and invitees and all persons
                                          and entities claiming through any of
                                          these persons or entities.

         Addresses for notices under this Lease:

         LANDLORD:                        F/P/D Master Lease, Inc.
                                          c/o Faison-Stone, Inc.
                                          1700 Pacific Avenue, Suite 4500
                                          Dallas, Texas 75201
                                          Attention:  M. Scott Ozymy
                                          Fax: (214)969-0384

         TENANT:                          Service Asset Management Company
                                          1700 Pacific Avenue, Suite 1400
                                          Dallas, Texas 75201
                                          Attention:   William D. Gross
                                          Fax: (214)___-______

                                          with a copy to:

                                          Service Asset Management Company
                                          6907 Capital of Texas Highway #230
                                          Austin, Texas 78755-0800
                                          Attention:   Roger J. Engemoen, Jr.
                                          Fax: (512)231-8526

                                                                          PAGE 3

<PAGE>   8

2.       LEASED PREMISES.

         Landlord, in consideration of the Rent and the obligations of Tenant
         under this Lease, leases the Leased Premises to Tenant and Tenant
         leases the Leased Premises from Landlord, subject to the terms of this
         Lease. The number of RENTABLE SQUARE FEET in the Leased Premises and
         the Project is the square footage of the applicable portion of the
         Project, is stipulated for all purposes to be the number of Rentable
         Square Feet set forth in Section 1 and is binding on Landlord and
         Tenant subject to changes in the size of the Leased Premises.

3.       LEASE TERM.

         (a)      The Lease Term begins on the earliest to occur of: (1) the
                  date Tenant occupies any part of the Leased Premises; (2) the
                  Commencement Date; or (3) the Ready for Occupancy Date
                  (defined below); and ends on the Expiration Date.
                  Notwithstanding the foregoing, if the Ready for Occupancy Date
                  occurs before May 22, 1998, then the Lease Term shall begin on
                  the earlier of (i) the date Tenant occupies any part of the
                  Lease Premises or May 25, 1998, and if the Ready for Occupancy
                  Date occurs on or after May 25, 1998 and before July 3, 1998,
                  then the Lease Term shall begin on the earlier of (i) the date
                  Tenant occupies any part of the Lease Premises, or (ii) July
                  3, 1998.

         (b)      Subject to Paragraph 3(c) below, if the Ready for Occupancy
                  Date does not occur by the Commencement Date for any reason
                  other than omission, delay, or default by any Tenant Party,
                  Tenant's obligation to pay Rent does not commence until the
                  Ready For Occupancy Date occurs and the Expiration Date is
                  extended for a period of time equal to the time period
                  beginning on the Commencement Date and ending on the day
                  before the Ready for Occupancy Date. This abatement of Rent is
                  Tenant's sole and exclusive remedy and is full settlement of
                  all claims that Tenant has against Landlord by reason of the
                  Leased Premises not being ready for occupancy by Tenant on the
                  Commencement Date.

         (c)      If Tenant occupies any part of the Leased Premises before the
                  Commencement Date or the Ready for Occupancy Date, as
                  applicable, the Lease Term and Tenant's obligation to pay Rent
                  commence on the date Tenant occupies the Leased Premises and
                  the Expiration Date is 126 months after the date on which
                  Tenant's occupancy commences. Tenant is deemed to OCCUPY the
                  Leased Premises when Tenant takes possession of any part of
                  the Leased Premises for any purpose, including placing
                  furniture and installing Tenant's equipment in the Leased
                  Premises.

         (d)      When the first day of the Lease Term is established pursuant
                  to this Paragraph 3, Landlord shall prepare and Landlord and
                  Tenant shall exchange a letter acknowledging that date and, if
                  the Expiration Date changes under this Paragraph, the
                  Expiration Date.

                                                                          PAGE 4

<PAGE>   9

         (e)      The READY FOR OCCUPANCY DATE is the earlier to occur of:

                  (1)      the date that Landlord notifies Tenant that the City
                           of Dallas has approved the Leased Premises for
                           occupancy; or

                  (2)      the date the City of Dallas would have approved the
                           Leased Premises for occupancy but for delays caused
                           by any Tenant Party;

                  provided, if Landlord performs any Additional Work (defined in
                  EXHIBIT F), the Ready for Occupancy Date is deemed accelerated
                  by the number of days in the Additional Work Period (defined
                  in EXHIBIT F).

4.       ACCEPTANCE OF LEASED PREMISES.

         Tenant's occupancy of the Leased Premises is conclusive evidence that
         Tenant: (A) accepts the Leased Premises as suitable for the purposes
         for which they are leased; (B) accepts the Leased Premises and the
         Project as being in a good and satisfactory condition; and (C) waives
         any defects in the Leased Premises and the Project; provided, however,
         that by occupying the Lease Premises, Tenant shall not be deemed to
         have accepted or waived any defect therein about Tenant, in the
         exercise of reasonable care, could not have learned prior to occupying
         the Leased Premises.

5.       RENT PAYMENTS.

         (a)      The installment of Minimum Rent due for the seventh (7th)
                  month of the Lease Term is payable by Tenant when this Lease
                  is executed. Subsequent installments of Minimum Rent are
                  payable by Tenant in advance on the first day of each calendar
                  month during the Lease Term beginning on the first day of the
                  eighth full calendar month after the Commencement Date (or the
                  Ready for Occupancy Date, if applicable). Minimum Rent for any
                  partial calendar month is prorated on a per diem basis.

         (b)      All Rent is payable by Tenant at the times and in the amounts
                  specified in this Lease in legal tender of the United States
                  of America to Landlord at the following address or to any
                  other person or at any other address as Landlord may from time
                  to time designate by notice to Tenant:

                            F/P/D Master Lease, Inc.
                            P.O. Box 844792
                            Dallas, Texas 75284-4792

         (c)      Rent is payable by Tenant without notice, demand, abatement,
                  deduction, or set off. Tenant's obligation to pay Rent is
                  independent of any obligation of Landlord under

                                                                          PAGE 5

<PAGE>   10

                  this Lease. If any installment of Rent is not paid within 5
                  days after it is due, Tenant shall pay a late charge in an
                  amount equal to 10% of the delinquent installment of Rent when
                  it pays the delinquent installment. In addition, any Rent not
                  paid when due (and which represents amounts not already
                  specified as bearing interest under other provisions of this
                  Lease) bears interest from the due date until the date paid at
                  a rate (the INTEREST RATE) equal to the lesser of the highest
                  rate allowable under applicable law or 18% per annum.

6.       ELECTRICITY.

         (a)      Landlord, subject to payment by Tenant as specified below,
                  shall furnish electricity as follows:

                  o        up to 2 watts per Rentable Square Foot in the Leased
                           Premises at 277 volts for lighting; and

                  o        up to 1.25 watts per Rentable Square Foot in the
                           Leased Premises at 120 volts for office machines.

                  If Tenant wants to use any office equipment or lighting that
                  will cause Tenant's electricity requirements to exceed the
                  specified levels or that will generate, excess heat, Tenant
                  must give Landlord prior notice specifying Tenant's excess
                  electricity requirements and the specific equipment that
                  generates excess heat. If the excess electricity requirements
                  can be supplied without, in Landlord's sole opinion,
                  overloading the existing Building systems, or if the
                  additional equipment necessary to supply Tenant's excess
                  electricity requirements can be installed without, in
                  Landlord's sole opinion, creating a dangerous condition in the
                  Building, Landlord shall supply Tenant's excess electricity
                  requirements and Tenant shall pay Landlord the cost of
                  supplying the excess electricity requirements, including all
                  installation costs, on demand as additional Rent.

         (b)      If Tenant's electricity use exceeds the specified limits,
                  Landlord may, at its sole option, either:

                  o        install separate submeter(s) for all or any part of
                           the Leased Premises and Tenant shall pay Landlord the
                           installation cost and the cost of the excess
                           electricity as metered on demand as additional Rent;
                           or

                  o        if Landlord does not elect to install separate
                           submeter(s), cause Landlord's engineer to determine
                           the amount of excess electricity to be allocated to
                           Tenant based on the power requirements of the
                           equipment or lighting and Tenant shall pay Landlord
                           the cost of the excess electricity as reasonably
                           determined by Landlord's engineer on demand as
                           additional Rent.

                                                                          PAGE 6

<PAGE>   11

         (c)      If Tenant's electricity use exceeds the specified limits or
                  any of Tenant's equipment generates excess heat, Landlord may
                  also, at its sole option and without any obligation to do so,
                  install supplemental air conditioning units in the Leased
                  Premises to offset the heat-generating effect of Tenant's
                  excess electricity usage and Tenant's equipment and Tenant
                  shall pay Landlord the installation cost and the cost of
                  operation, use, repair, and replacement of the supplemental
                  air conditioning units on demand as additional Rent.

         (d)      The obligation of Landlord to furnish electricity is subject
                  to the rules and regulations of the supplier of electricity
                  and of any municipal or other governmental authority
                  regulating the business of providing electricity. Landlord is
                  not liable to any Tenant Party for any failure or defect in
                  the supply or character of electricity furnished to the Leased
                  Premises due to any requirement, act, or omission of the
                  entity supplying electricity to the Project.

         (e)      Tenant shall pay to Landlord, without any set off or
                  deduction, beginning on the Commencement Date, Tenant's
                  Proportionate Share of Total Electricity Costs for the Project
                  (defined below) incurred in the use, occupancy, and operation
                  of the Project and all related improvements and appurtenances,
                  including electricity used for heating and air-conditioning
                  and perimeter lighting for the Project, net of Submetered
                  Power (defined below).

         (f)      The term TOTAL ELECTRICITY COSTS FOR THE PROJECT means the
                  total electricity cost charged to Landlord by the entity
                  supplying electricity to the Building, and the Building's
                  share of electricity costs charged for other portions of the
                  Project, including taxes, but may not include any
                  administrative fee or charge by Landlord. The term SUBMETERED
                  POWER means all supplemental electricity that is separately
                  submetered by Landlord and paid by tenants in the Building or
                  that is separately tracked and calculated by Landlord's
                  engineer and paid by tenants in the Building.

         (g)      If Landlord at any time elects to install submeters measuring
                  electricity used in the Building or the Leased Premises, which
                  may include submeters measuring electricity used for heating
                  and cooling the Building or Leased Premises, then Tenant's
                  Proportionate Share of those actual costs will be based on
                  actual use as measured by the submeters, but, with any areas
                  sharing a submeter being prorated on the basis that the area
                  of the Leased Premises bears to the total area covered by the
                  submeters.

         (h)      Landlord shall bill Tenant for Tenant's electricity charges
                  under this Paragraph monthly and Tenant shall pay its
                  electricity charges within 10 business days after receipt of
                  each bill. Landlord shall bill Tenant for Tenant's electricity
                  charge for the last full or partial month of the Lease Term as
                  soon as practicable after the termination or expiration of
                  this Lease and Tenant shall pay the bill within 10

                                                                          PAGE 7
<PAGE>   12

                  business days after receipt. Tenant's obligation to pay the
                  bill survives the termination or expiration of the Lease.

 7.      SERVICES BY LANDLORD.

         Landlord shall maintain the Building, the On-Site Garage, the Off-Site
         Garage and all common areas (exclusive of those portions of the Lease
         Premises Tenant is obligated to maintain hereunder) in accordance with
         standards customarily followed in the maintenance of first-class
         buildings comparable to the Building in the downtown Dallas central
         business district. Landlord, subject to payment by Tenant as specified
         below, shall furnish the following services for the Leased Premises:

         o        air conditioning, both heating and cooling (as required by the
                  seasons), from 8:00 a.m. to 6:00 p.m. on weekdays and on
                  Saturdays from 8:00 a.m. to 1:00 p.m., except on Holidays (as
                  defined below) (the HVAC Standard Hours) amounts as are in the
                  sole judgment of Landlord reasonably required for comfortable
                  use and occupancy under normal business operations.
                  Circulating air is not available other than through the
                  Building's HVAC system. If Tenant requires HVAC services at
                  any time other than HVAC Standard Hours, Landlord shall
                  furnish after-hours HVAC service for the times specified in a
                  request by Tenant received by the Project manager before 2:00
                  p.m. on the business day the extra usage is required. Requests
                  received after that deadline will be handled in accordance
                  with Landlord's Building Policies in effect at the time.
                  Tenant acknowledges receipt of a copy of the current Building
                  Policies. Landlord may make changes in the Building Policies
                  and the changes become effective when a copy of the revised
                  Building Policies is delivered to Tenant. Tenant shall pay
                  Landlord as additional Rent for extra service within 5 days
                  after receipt of a bill therefor the greater of (A) the actual
                  cost of the extra service [if more than one tenant has
                  requested and is furnished after-hours HVAC service for the
                  same hour(s) the charge will be prorated if reasonably
                  possible], or (B) $50 per hour per floor (whole or partial) of
                  after-hours HVAC service. HOLIDAYS are New Year's Day,
                  Memorial Day, Independence Day, Labor Day, Thanksgiving, and
                  Christmas. BUSINESS DAYS are weekdays other than Holidays.

         o        cold water (at the normal temperature of the water supply to
                  the Building) for lavatory and toilet purposes, water for
                  drinking purposes, and hot water (from the regular Building
                  supply at prevailing temperatures) for lavatory purposes to
                  restrooms located in the core area of the Building only, all
                  water service to be at supply points provided for general use
                  of tenants of the Building through fixtures installed by
                  Landlord, or by Tenant with Landlord's prior consent;

         o        janitor and maid service to the Leased Premises in accordance
                  with Exhibit G on days other than Fridays, Saturdays, and
                  Holidays;

                                                                          PAGE 8

<PAGE>   13

         o        window washing and wall cleaning as determined by Landlord in
                  its reasonable discretion;

         o        operator-less passenger elevators for ingress and egress to
                  and from the floor(s) on which the Leased Premises are located
                  (provided, Landlord may reasonably limit the number of
                  elevators to be in operation on Saturdays, Sundays, and
                  Holidays) and freight elevator service in common with other
                  tenants but only when scheduled through the Project manager;

         o        common area rest room facilities; and

         o        electric lighting for all common areas and special service
                  areas of the Building in the manner and to the extent deemed
                  by Landlord to be reasonable and standard, including
                  replacement of fluorescent light tubes in Building standard
                  light fixtures.

         BUILDING STANDARD HOURS are weekdays, excluding Holidays, from 8:00
         a.m. to 6:00 p.m. Landlord may lock the Buildings at all times other
         than during Building Standard Hours; provided, however, that Tenant
         shall at all times have access to the Leased Premises by keys, magnetic
         cards, or other access device provided by Landlord in accordance with
         this Lease, subject to reasonable access control measures instituted by
         Landlord after Building Standard Hours.

8.       SERVICE INTERRUPTIONS.

         (a)      Landlord does not warrant that the services provided by
                  Landlord will be free from any slow-down, interruption, or
                  stoppage by governmental bodies, regulatory agencies, utility
                  companies, and others supplying services or caused by the
                  maintenance, repair, replacement, or improvement of any
                  equipment involved in the furnishing of the services or caused
                  by changes of services, alterations, strikes, lockouts, labor
                  controversies, fuel shortages, accidents, acts of God, the
                  elements, or other causes beyond the reasonable control of
                  Landlord. Landlord shall use due diligence to resume the
                  service upon any slowdown, interruption, or stoppage.

         (b)      No slow-down, interruption, or stoppage of the services may be
                  construed as an eviction, actual or constructive, of Tenant or
                  cause an abatement of Rent or in any manner or for any purpose
                  relieve Tenant from its obligations under this Lease. Landlord
                  is not liable for damage to persons or property, or in default
                  under this Lease, as a result of any slow-down, interruption,
                  or stoppage.

         (c)      Notwithstanding the foregoing, if there occurs an interruption
                  in HVAC, electricity, water or elevator services ("ESSENTIAL
                  SERVICES"), such interruption is not caused by Tenant or a
                  Tenant Party, such interruption renders at least 50% of the
                  Leased Premises untenantable, and such interruption continues
                  to render at least 50% of the

                                                                          PAGE 9

<PAGE>   14

                  Lease Premises untenantable for (i) 5 consecutive business
                  days if caused by Landlord's negligence or willful misconduct,
                  or (ii) 30 consecutive days if not caused by Landlord's
                  negligence or willful misconduct, then Rent shall abate as to
                  that portion of the Leased Premises rendered untenantable from
                  the 6th consecutive business day or the 31st day, as the case
                  may be, of such interruption and for as long as such
                  interruption continues thereafter. The foregoing remedies
                  shall be Tenant's sole and exclusive remedies with respect to
                  interruption of services.

9.       OPERATING COSTS.

         (a)      The term OPERATING COSTS means those expenses (other than
                  expenses for electricity) directly incurred in the management,
                  operation, maintenance, repair, and security of the Project,
                  including but not limited to the cost of all utilities,
                  building supplies, janitorial service, maintenance, repairs,
                  fire and extended coverage, public liability, and other
                  insurance costs, all labor and employee benefit costs
                  (including wages, salaries, and fees of all personnel engaged
                  in the management, operation, maintenance, repair, and
                  security of the Project), ad valorem taxes and assessments
                  (both regular and special), costs that reduce operating
                  expenses or are required to meet Applicable Laws [defined in
                  Paragraph 14(a)], management fees, consulting fees, legal
                  fees, accounting fees, the Building's share of fees, charges,
                  taxes, expenses and other amounts due in connection with
                  pedestrian tunnels, pedestrian skybridges, parking garages,
                  City of Dallas property required to be maintained or operated
                  by Landlord, and other elements of the Project or other
                  facilities that benefit the Building, and the fair market
                  rental of the Project managers' offices, together with
                  payments or credits Landlord makes to any tenant or tenants in
                  the Project in lieu of Landlord providing any of the services
                  or paying for any of the costs. If for any time period in
                  question the Project is less than 95% occupied, Landlord shall
                  increase Operating Costs as though the Project were 95%
                  occupied.

         (b)      The term EXCESS OPERATING COSTS means the amount by which the
                  Operating Costs for any calendar year after the Base Year
                  exceed the Operating Costs for the Base Year. Landlord shall
                  calculate Operating Costs and Excess Operating Costs on a
                  Rentable Square Foot basis by dividing the aggregate costs by
                  the Total Building Area. If the amount of ad valorem taxes and
                  assessments for the Base Year is subsequently modified, the
                  modified amount is deemed to be the ad valorem taxes and
                  assessments for the Base Year and is substituted for the
                  original amount of taxes and assessments in the calculation of
                  Operating Costs for the Base Year.

         (c)      If there are Excess Operating Costs for any calendar year,
                  Tenant shall pay to Landlord as additional Rent an amount
                  equal to the product of the Excess Operating Costs (on a
                  Rentable Square Foot basis) multiplied by the number of
                  Rentable Square Feet in the Leased Premises. If the amount of
                  ad valorem taxes and assessments for the Base Year is reduced
                  under subparagraph (b), Tenant shall pay to Landlord as

                                                                         PAGE 10

<PAGE>   15

                  additional Rent any underpayment in Excess Operating Costs
                  resulting from the recalculation of the Operating Costs for
                  the Base Year within 30 days after delivery of any invoice
                  therefor.

         (d)      On or before December 1 of the Base Year and each subsequent
                  calendar year, Landlord shall deliver to Tenant Landlord's
                  reasonable estimate of the Excess Operating Costs for the next
                  calendar year. Tenant shall pay to Landlord monthly as
                  additional Rent, in advance on or before the first day in each
                  succeeding calendar month, an amount equal to one twelfth
                  (1/12th) of the product of the number of Rentable Square Feet
                  in the Leased Premises times Landlord's estimated Excess
                  Operating Costs for the applicable calendar year. Landlord may
                  adjust its estimate by notice to Tenant at any time during the
                  applicable calendar year if actual Excess Operating Costs are
                  substantially different from the estimate, and thereafter
                  payments by Tenant under this Paragraph adjust accordingly.
                  The term CALENDAR YEAR includes partial calendar years.

         (e)      No later than July 1 of each calendar year, Landlord shall
                  deliver to Tenant a statement (EXCESS OPERATING COSTS
                  STATEMENT) certified by an authorized representative of
                  Landlord setting out in reasonable detail the actual Excess
                  Operating Costs for the prior calendar year. If the estimated
                  payments made by Tenant during the prior calendar year exceed
                  Tenant's share of actual Excess Operating Costs for that year,
                  Landlord shall credit the difference against the next ensuing
                  installments of estimated payments by Tenant under this
                  Paragraph. If the estimated payments made by Tenant during the
                  prior calendar year under this Paragraph are less than
                  Tenant's share of the actual Excess Operating Costs for that
                  year, Tenant shall pay the amount of the difference to
                  Landlord in cash within 30 days after delivery of any invoice
                  therefor by Landlord accompanied by a statement of the actual
                  Excess Operating Costs for that year as additional Rent.

         (f)      Notwithstanding the foregoing, Operating Costs that are
                  controllable (which excludes electricity, taxes, utilities and
                  insurance) shall not increase, on a cumulative compounded
                  basis by more than eight percent (8%) per year during the
                  Lease Term.

         (g)      If Operating Costs for any calendar year (other than taxes,
                  utility or insurance) increase by more than 5%, Tenant, at its
                  expense, may inspect, audit, and copy Landlord's books and
                  records concerning the applicable Excess Operating Costs
                  Statement at Landlord's Project Manager's offices during
                  normal office hours within 6 months after the date of the
                  Excess Operating Costs Statement by giving Landlord at least
                  30 days' prior notice. Tenant may not be in Landlord's Project
                  Manager's offices for more than a total of 5 business days.
                  Tenant shall make reasonable efforts to minimize any
                  disruption to Landlord's business while in Landlord's project
                  manager's offices. Landlord will use reasonable efforts to
                  cooperate with the conduct

                                                                         PAGE 11
<PAGE>   16

                  of such audit. Tenant shall deliver to Landlord a copy of the
                  audit within 10 days after it is finalized.

                  o        If Tenant disputes any Excess Operating Costs
                           Statement as a result of its audit and Landlord does
                           not contest the accuracy of Tenant's dispute, within
                           10 business days after demand, Landlord shall
                           reimburse Tenant the amount of any overpayment or
                           Tenant shall pay Landlord the amount of any
                           underpayment, together with interest thereon from the
                           date due until paid at the Interest Rate. If Landlord
                           contests the results of Tenant's audit, Landlord and
                           Tenant shall use reasonable efforts to resolve their
                           differences. If Landlord and Tenant are unable to
                           resolve their differences after using reasonable
                           efforts, then, prior to the institution of legal
                           action, Landlord and Tenant agree to attempt to
                           resolve such dispute by participating in nonbinding
                           mediation. If Tenant retains a third party (AUDITOR)
                           to audit any Excess Operating Costs Statement, the
                           Auditor must be a nationally recognized accounting
                           firm that is not being compensated by Tenant on a
                           contingency fee basis. Prior to conducting an audit,
                           Tenant and any Auditor shall execute Landlord's
                           standard form of confidentiality agreement relating
                           to the audit.

                  o        Tenant may not conduct an audit of any Excess
                           Operating Costs Statement if Tenant is in default
                           under this Lease at the time Tenant delivers its
                           notice to Landlord requesting the audit or at the
                           time the audit would be conducted. Except for
                           Affiliate, as hereinafter defined, sublessees or
                           assignees, no subtenant may conduct an audit and no
                           assignee may conduct an audit for any period during
                           which the assignee was not in possession of the
                           Leased Premises.

10.      SECURITY DEPOSIT. Intentionally Deleted.

11.      ASSIGNMENT AND SUBLETTING.

         (a)      Tenant may not, without Landlord's prior written consent,
                  except as specified in subparagraph 11(i) below; (1) assign or
                  transfer this Lease or any interest therein; (2) permit any
                  assignment of this Lease or any interest therein by operation
                  of law; (3) sublet the Leased Premises or any part thereof;
                  (4) grant any license, concession, or other right of occupancy
                  of any portion of the Leased Premises; (5) mortgage, pledge,
                  or otherwise encumber its interest in this Lease; or (6)
                  permit the use of the Leased Premises by any parties other
                  than Tenant and its employees. Landlord's consent to any
                  assignment, subletting, or reorganization is not a waiver of
                  Landlord's right to approve or disapprove any subsequent
                  assignment, subletting, or reorganization. Tenant and any
                  guarantor of Tenant's obligations under this Lease (GUARANTOR,
                  whether one or more) shall remain jointly and severally liable
                  for the

                                                                         PAGE 12
<PAGE>   17

                  payment of Rent and performance of all other obligations under
                  this Lease after any assignment or subletting. If Tenant is a
                  partnership, Tenant, Guarantor, and the general partners of
                  Tenant prior to its reorganization shall remain jointly and
                  severally liable for the payment of Rent and performance of
                  all other obligations under this Lease after any
                  reorganization.

         (b)      If an Event of Default (defined in Paragraph 27) occurs while
                  the Leased Premises or any part thereof are assigned or
                  sublet, Landlord, in addition to any other remedies under this
                  Lease or provided by law, may at its option collect directly
                  from the assignee or sublessee all rents payable to Tenant
                  under the assignment or sublease and apply the rent against
                  any sums due to Landlord under this Lease. Tenant authorizes
                  and directs any assignee or sublessee to make payments of rent
                  directly to Landlord upon receipt of notice from Landlord. No
                  direct collection of rent by Landlord from any assignee or
                  sublessee is a novation or a release of Tenant or Guarantor
                  from the performance of their obligations under this Lease or
                  under any guaranty executed by Guarantor. Receipt by Landlord
                  of rent from any assignee, sublessee, or occupant of the
                  Leased Premises is not a waiver of the covenant against
                  assignment and subletting or a release of Tenant or Guarantor.

         (c)      If Tenant wants to assign or sublease all or part of the
                  Leased Premises, it shall deliver a notice to Landlord
                  specifying the name of, financial information for, and the
                  nature of the business of the proposed assignee or subtenant,
                  and the proposed effective date of the assignment or sublease.
                  Tenant may not assign or sublease all or any part of the
                  Leased Premises at any time when Tenant is in default under
                  this Lease, whether or not an Event of Default has occurred.

         (d)      Landlord has a period of 20 days from receipt of Tenant's
                  notice to notify Tenant that Landlord elects, in Landlord's
                  sole discretion, to:

                  (1)      terminate this Lease as to the space that is the
                           subject of Tenant's notice as of the date specified
                           by Tenant, and if more than thirty percent (30%) of
                           the Leased Premises, whether through one or more
                           transactions, will be subject to assignments or
                           subleases as a results of the proposed sublease or
                           assignment, Landlord shall have the right to
                           terminate the Lease in its entirety;

                  (2)      consent to the assignment or sublease; provided, if
                           the rent payable to the Tenant by the sublessee is
                           greater than the Minimum Rent, fifty percent (50%) of
                           the excess rent is payable by Tenant as additional
                           Rent to Landlord on the same dates Tenant pays
                           Minimum Rent; or

                  (3)      refuse to consent to Tenant's assignment or sublease
                           of that space and to continue this Lease in effect.

                                                                         PAGE 13
<PAGE>   18

                  If Landlord does not notify Tenant of Landlord's election
                  within the 20-day period, Landlord is deemed to elect option
                  (3).

         (e)      Any change in a majority of the voting rights or other control
                  rights of Tenant is an assignment for purposes of this
                  Paragraph. If Tenant is a partnership, then any transfer of a
                  general partnership interest is an assignment for purposes
                  hereof.

         (f)      As a condition to the effectiveness of each assignment or
                  subletting, and whether or not Landlord's prior consent is
                  required for the assignment or subletting, Tenant shall pay to
                  Landlord its reasonable administrative and legal costs in
                  connection therewith, not to exceed $1,000.

         (g)      Any attempted assignment or sublease by Tenant or any
                  attempted reorganization of Tenant in violation of the terms
                  of this Paragraph is void.

         (h)      Tenant may not enter into any sublease, license, concession or
                  other agreement for any use, occupancy or utilization of the
                  Leased Premises that provides for a rental or other payment
                  for the use, occupancy, or utilization based in whole or in
                  part on the net income or profits derived by any person from
                  the premises so leased, used, occupied, or utilized.

         (i)      Tenant may, without the prior consent of Landlord, sublet all
                  or any part of the Leased Premises to an Affiliate (defined
                  below), or assign this Lease to an Affiliate, so long as (i)
                  Tenant provides Landlord a copy of the sublease or the
                  assignment within 10 days after its execution, (ii) the
                  transaction was not entered into as a subterfuge to avoid the
                  obligations and restrictions of this Lease, (iii) the assignee
                  or sublessee is engaged in a business customarily acceptable
                  for a tenant in a first-class high-rise building in Dallas,
                  Texas, (iv) the assignee's or sublessee's proposed use of the
                  Leased Premises does not violate this Lease, and (v) the
                  assignee's or sublessee's net worth, creditworthiness and
                  financial standing is equal to or better than Tenant's as of
                  the date of such assignment or sublease. Landlord has no
                  obligation to recognize an Affiliate as the tenant under this
                  Lease unless Landlord timely receives a complete copy of the
                  assignment or sublease. Tenant and Guarantor remain jointly
                  and severally liable for the payment of Rent and performance
                  of all other obligations under this Lease after any assignment
                  or subletting to an Affiliate. The term AFFILIATE means any
                  entity that acquires all or part of Tenant, or that is
                  acquired in whole or in part by Tenant, or which entity
                  controls, directly or indirectly, Tenant. For purposes of this
                  subparagraph, CONTROL means the possession, directly or
                  indirectly, of the power to direct or cause the direction of
                  the management and policies of a corporation, whether through
                  the ownership of voting securities or by contract or
                  otherwise.

                                                                         PAGE 14
<PAGE>   19

         (j)      If Landlord exercises its termination right set forth in
                  subparagraph 11(d)(1) above, the number of reserved (if any)
                  and unreserved parking spaces allocated to Tenant reduces
                  proportionately, effective as of the date of termination.

         (k)      Notwithstanding the foregoing, Landlord will not unreasonably
                  withhold its approval of an assignment of this Lease or a
                  sublease of a portion of the Leased Premises so long as the
                  following conditions are satisfied: (i) the assignee or
                  sublessee is of a kind and type and has a net worth and
                  creditworthiness comparable to other tenants customarily found
                  in or comparable with first-class office buildings in the
                  downtown Dallas central business district comparable to the
                  Building; (ii) the assignee or sublessee is engaged in a
                  business customarily acceptable for a tenant in a first-class
                  office building in the downtown Dallas central business
                  district comparable to the Building; (iii) the assignee's or
                  sublessee's proposed use of the Leased Premises does not
                  violate this Lease or any restriction applicable to the
                  Building; (iv) at the time of such assignment or subletting,
                  this Lease is in full force and effect and there is no uncured
                  Event of Default; (v) the assignee or sublessee shall not use
                  the Leased Premises or the Building in a manner that adversely
                  interferes with, burdens the use of or otherwise increases the
                  use of the public areas of the Project, any Building system,
                  or the use of the elevators or any Building system; and (vi)
                  in no event shall the following be considered as suitable
                  assignees or sublessees under this Lease: any governmental
                  body, agency or bureau (of the United States, any state,
                  county, municipality or any subdivision thereof); any foreign
                  government or subdivision thereof; any health care
                  professional or health care service organization; schools or
                  similar organizations; employment agencies; radio, television
                  or other communication stations; restaurants; and retailers
                  offering retail services from the Leased Premises.

         (l)      Notwithstanding the giving by Landlord of its consent to any
                  sublease or assignment with respect to the Leased Premises, no
                  sublessee or assignee may exercise any renewal options,
                  expansion options, rights of first offer or similar rights
                  under this Lease except in accordance with a separate written
                  agreement entered into directly between such sublessee or
                  assignee and Landlord, provided Tenant continues to be liable
                  for the performance of all obligations hereunder, as increased
                  or otherwise affected by the exercise of such rights. Tenant
                  may not exercise any renewal options, expansion options,
                  rights of first offer or similar rights under this Lease if
                  Tenant has assigned any portion of its interest in this Lease
                  or subleased any portion of the Leased Premises.

12.      REPAIR AND MAINTENANCE BY TENANT.

         (a)      Except for those repairs and maintenance obligations required
                  to be undertaken by Landlord as expressly provided in this
                  Lease, Tenant shall keep the Leased Premises [including,
                  without limitation, Standard Improvements and Tenant
                  Improvements

                                                                         PAGE 15

<PAGE>   20

                  (both as defined in Exhibit F)] and all fixtures installed by
                  or on behalf of Tenant in good and tenantable condition.
                  Tenant shall promptly make all necessary non-structural
                  repairs and replacements to its fixtures and Tenant
                  Improvements, all at Tenant's expense, under the supervision
                  and with the approval of Landlord. All repairs and
                  replacements must be equal in quality and class to the
                  original work. Without diminishing this obligation of Tenant,
                  if Tenant fails to make any repairs and replacements within 15
                  days after the occurrence of the damage or injury, Landlord
                  may at its option make the repairs and replacements and Tenant
                  shall pay Landlord on demand as additional Rent the costs
                  incurred by Landlord plus an administrative fee equal to 10%
                  of the costs; provided, however, that with respect to any
                  repair which reasonably requires more than 15 days to
                  complete, Landlord shall not have the right to make such
                  repair or replacement as long as Tenant commences such repair
                  within such 15 day period and thereafter diligently pursues
                  such repair to completion.

         (b)      Tenant shall pay the cost of repairs and replacements due to
                  damage or injury to the Project or any part thereof caused by
                  any Tenant Party or by any malfunction or misuse of any
                  equipment installed by or on behalf of Tenant. This amount is
                  payable by Tenant to Landlord on demand as additional Rent,
                  plus interest at the Interest Rate from the date of payment by
                  Landlord until paid by Tenant. If Tenant requests Landlord to
                  perform any maintenance or repairs to the Leased Premises,
                  over and above the services required to be performed by
                  Landlord pursuant to Paragraph 7, Tenant shall pay the actual
                  cost thereof, plus an administrative fee equal to 10% of the
                  actual cost thereof, to Landlord as additional Rent within 5
                  business days after demand.

         (c)      Tenant also shall pay the actual cost, plus an administrative
                  fee equal to 10% of the actual cost thereof, to Landlord as
                  additional Rent within 5 days after demand, of replacing
                  fluorescent light tubes in Building standard light fixtures
                  located in the Leased Premises.

13.      ALTERATIONS AND ADDITIONS BY TENANT.

         (a)      Tenant may not make or permit any alterations, improvements,
                  or additions in or to the Leased Premises or the Project
                  without Landlord's prior consent. Provided Tenant has notified
                  Landlord in writing at least 10 days prior to the commencement
                  of any such work within the Leased Premises, Landlord will not
                  unreasonably withhold its approval of non-structural
                  alterations or physical additions to the Leased Premises which
                  cost $10,000 or less in each case subject to the following
                  limitations: (i) such alterations and additions will not
                  impair the structural integrity of the Building, (ii) such
                  alterations and additions will not affect the mechanical,
                  electrical, plumbing, heating, air-conditioning or ventilation
                  systems of the Leased Premises, (iii) such alterations and
                  additions are accomplished in a good and workmanlike

                                                                         PAGE 16
<PAGE>   21

                  manner and in accordance with all applicable governmental
                  requirements, (iv) such alterations and additions are not
                  visible from outside the Leased Premises, and (v) Tenant
                  obtains all applicable governmental permits and approvals
                  required in connection with such alterations and additions.
                  All alterations, additions, and improvements made to, or
                  fixtures or other improvements placed in or upon, the Leased
                  Premises, whether temporary or permanent in character, by
                  either party (except only Tenant's movable trade fixtures,
                  office furniture, and equipment) are a part of the Project and
                  are the property of Landlord when they are placed in the
                  Leased Premises without compensation to Tenant. Alterations,
                  improvements, and additions in and to the Leased Premises
                  requested by Tenant must be made in accordance with complete
                  and accurate plans and specifications and construction
                  documents [including, without limitation, complete mechanical,
                  electrical and plumbing (MEP) requirements] prepared by Tenant
                  and approved in advance by Landlord. All work must be
                  performed at Tenant's expense either by Landlord or by
                  contractors and subcontractors approved in advance by
                  Landlord. If the work is not performed by Landlord, then all
                  work performed by Tenant's contractors and subcontractors is
                  subject to the following conditions:

                  (1)      Each contractor and subcontractor must deliver
                           evidence satisfactory to Landlord that the insurance
                           specified on EXHIBIT D is in force prior to
                           commencing work.

                  (2)      Tenant shall ensure that all workers are cooperative
                           with Project personnel and comply with all Project
                           Rules and Regulations.

                  (3)      Tenant must deliver to Landlord evidence that Tenant
                           has obtained all necessary governmental permits and
                           approvals for the improvements or alterations prior
                           to starting any work.

                  (4)      All construction must be done in a good and
                           workmanlike manner and is subject to approval by
                           Landlord during and after construction to determine
                           compliance with the approved plans and specifications
                           and construction documents, in its sole discretion.

                  (5)      Lien releases from each contractor and subcontractor
                           must be submitted to Landlord within 5 days after
                           completion of the work performed by the contractor or
                           subcontractor.

                  (6)      Within 30 days after completion of any improvements
                           or alterations, Tenant, at its cost, shall deliver to
                           Landlord 2 reproducible copies of "as-built" plans
                           and specifications (1/8" scale) for each floor where
                           alterations or improvements were made.

                                                                         PAGE 17
<PAGE>   22

                  All changes to the plans and specifications and construction
                  documents are also subject to Landlord's prior approval.

         (b)      Tenant must use Landlord's fire protection contractor and must
                  either (1) use Landlord's MEP engineer to prepare the MEP
                  portions of the plans and specifications and construction
                  documents, or (2) reimburse the cost of one review by
                  Landlord's MEP engineer of the plans and specifications and
                  the construction documents. Landlord shall cause its fire
                  protection contractor and MEP engineer to perform the work for
                  Tenant at Landlord's contracted rates.

         (c)      All alterations and improvements by Tenant must comply with
                  all Applicable Laws. Tenant and its consultants must
                  coordinate any alterations or additions relating to compliance
                  with Access Laws with Landlord and Landlord's Access Law
                  compliance plan for the Project in preparing the plans and
                  specifications and construction documents. If Tenant's
                  alterations or additions to the Leased Premises or the manner
                  in which Tenant uses the Leased Premises cause Landlord to
                  make any alterations or improvements to the Project to comply
                  with the provisions of the Americans With Disabilities Act of
                  1990 (as amended), the Texas Architectural Barriers Act (as
                  amended) [Tex. Rev. Civ. Stat. Ann. Art. 9102], and any
                  similar law, rule or regulation relating to access by disabled
                  persons to the Leased Premises or the Project (collectively,
                  ACCESS LAWS), Tenant shall reimburse Landlord for the cost of
                  the alterations or improvements upon demand as additional
                  Rent. Neither Landlord's approval of Tenant's plans and
                  specifications for the alterations or improvements nor
                  Landlord's acceptance of Tenant's as-built plans is a
                  confirmation or agreement by Landlord that the improvements
                  and alterations comply with Applicable Laws.

         (d)      Within 30 days after Tenant installs any telephone or data
                  cables, whether or not in connection with an alteration or
                  addition to the Leased Premises, Tenant, at its cost, shall
                  deliver to Landlord 2 reproducible copies of "as-built" plans
                  and specifications (1/8" scale) showing the location of the
                  telephone and data cables.

         (e)      As between Landlord and Tenant, for purposes of the insurance
                  requirements of Paragraph 18, Tenant has an insurable interest
                  in all of the Tenant Improvements and alterations made by
                  Tenant in the Leased Premises, but all of the Tenant
                  Improvements and alterations shall be surrendered to Landlord
                  with the Leased Premises upon the expiration or earlier
                  termination of the Lease as set forth in Paragraph 25 of the
                  Lease.

14.      USE AND OCCUPANCY.

         (a)      The Leased Premises may be used and occupied by Tenant only
                  for general business offices and incidental uses and for no
                  other purpose without Landlord's prior consent, in its sole
                  discretion. Tenant shall use and maintain the Leased Premises
                  in a clean,

                                                                         PAGE 18
<PAGE>   23

                  careful, safe, and proper manner and shall comply with all
                  laws, ordinances, orders, rules, and regulations of all
                  governmental bodies (state, federal, and municipal) applicable
                  to or having jurisdiction over the use, occupancy, operation,
                  and maintenance of the Leased Premises and the Project,
                  including without limitations all applicable environmental
                  laws and the Access Laws (those laws, ordinances, orders,
                  rules, decisions, and regulations being called APPLICABLE
                  LAWS).

         (b)      Tenant may not deface or injure the Leased Premises or the
                  Project or any part thereof or overload the floors of the
                  Leased Premises. Tenant may not commit waste or permit waste
                  to be committed or cause or permit any nuisance on or in the
                  Leased Premises or the Project. Tenant shall pay Landlord on
                  demand as additional Rent for any damage to the Leased
                  Premises or to any other part of the Project caused by any
                  negligence or willful act or any misuse or abuse (whether or
                  not the misuse or abuse results from negligence or willful
                  acts) by Tenant or any Tenant Party or any other person
                  (except Landlord or any of its agents, employees, or
                  contractors) authorized by Tenant to enter upon the Leased
                  Premises.

         (c)      Tenant may not use or allow the Leased Premises to be used for
                  any purpose prohibited by any Applicable Law, or by any
                  restrictive covenants applicable to the Project, or as a
                  manned express mail pick up center for delivery services like
                  Airborne and Federal Express, or for the sale of bakery
                  products for dessert items including cookies, fudge slices,
                  bar type cookies and cakes, cupcakes and brownies, whether the
                  product is sold packaged or unpackaged if the sales would
                  constitute more than 10% of Tenant's gross receipts, or for a
                  mini-bank or bank. Tenant may not sell, purchase, or give
                  away, or permit, except with Landlord's prior approval, the
                  sale, purchase, or gift of food in any form by or to any
                  Tenant Party or any other parties at the Leased Premises or
                  the Project. Tenant also will not use any part of the Leased
                  Premises for the following uses: health care services,
                  telephone or telegraph agency, radio, television or other
                  communication station, employment agency, public restaurant or
                  bar, retail, wholesale or discount shop for sale of
                  merchandise, retail service shop, school or classroom, or
                  governmental or quasi-governmental bureau, department or
                  agency. Tenant shall conduct its business and occupy the
                  Leased Premises and control all Tenant Parties so as not to
                  create any nuisance or interfere with, annoy, or disturb any
                  other tenants in the Project or Landlord in its management of
                  the Project and so as not to injure the reputation of the
                  Project.

         (d)      Tenant may not erect, place, or allow to be placed any sign,
                  advertising matter, stand, booth, or showcase in or upon the
                  doorsteps, vestibules, halls, corridors, doors, walls,
                  windows, or pavement of the Project visible outside the Leased
                  Premises (except for lettering on the door or doors to the
                  Leased Premises as allowed by the Rules and Regulations
                  attached as EXHIBIT D) without the prior consent of Landlord;
                  provided, however, that on the interior of any floor leased
                  entirely by Tenant, Tenant may

                                                                         PAGE 19
<PAGE>   24

                  install signage approved by Landlord, which approval shall not
                  be unreasonably withheld, that is not visible from the
                  exterior of the Leased Premises.

         (e)      Tenant may not use or allow or permit the Leased Premises to
                  be used in any way or for any purpose that:

                  (1)      Landlord deems hazardous on account of the
                           possibility of fire or other casualty;

                  (2)      is visible from the exterior of the Leased Premises,
                           adversely affects ventilation in other areas of the
                           Project, creates unreasonable elevator loads, causes
                           structural loads to be exceeded, or creates
                           unreasonable noise levels;

                  (3)      increases the rate of fire or other insurance for the
                           Project or its contents or in respect of the
                           operation of the Project; or

                  (4)      renders the Project uninsurable at normal rates by
                           responsible insurance carriers authorized to do
                           business in the State of Texas or renders void or
                           voidable any insurance on the Project.

                  If insurance premiums are increased because of Tenant's use of
                  the Leased Premises, then, in addition to any other remedies
                  Landlord may have, Tenant shall pay the amount of the increase
                  to Landlord as additional Rent within 5 days after demand.

15.      MECHANICS' LIENS - TENANT'S OBLIGATIONS.

         Tenant may not cause or permit any mechanic's or materialman's lien to
         be placed upon Landlord's interest in the Project or the Leased
         Premises or any part thereof or against Landlord's interest under this
         Lease by any contractor, subcontractor, laborer, or materialman
         performing any labor or furnishing any materials to Tenant for any
         improvement, alteration, or repair of or to the Leased Premises, the
         Project, or any part thereof. If any lien is filed on Landlord's
         interest or Tenant's interest in the Leased Premises, Tenant shall
         cause the same to be discharged of record within 20 days after filing.
         If Tenant does not discharge the lien within the 20-day period, then,
         in addition to any other right or remedy of Landlord, Landlord may, but
         is not obligated to, discharge the lien by paying the amount claimed to
         be due or by procuring the discharge of the lien by deposit in court or
         bonding. Any amount paid by Landlord relating to any lien not caused by
         Landlord, and all reasonable legal and other expenses of Landlord,
         including reasonable attorneys' fees, in defending any action or in
         procuring the discharge of any lien, with interest thereon at the
         Interest Rate from date of payment by Landlord until paid by Tenant, is
         payable by Tenant to Landlord on demand as additional Rent.

                                                                         PAGE 20
<PAGE>   25

16.      LIMITATIONS ON LIABILITY OF LANDLORD; WAIVER.

         (a)      To the fullest extent permitted by law, Tenant, on its behalf
                  and on behalf of all Tenant Parties, waives all claims (in
                  law, equity, or otherwise) against Landlord and Landlord's
                  officers, directors, shareholders, partners, trustees,
                  members, agents, employees, property manager and independent
                  contractors (singularly, a Landlord Party and collectively,
                  Landlord Parties) arising out of, knowingly and voluntarily
                  assumes the risk of, and agrees that Landlord Parties are not
                  liable to any Tenant Parties for any of the following:

                  (1)      any injury or damage to person or property (including
                           the resulting loss of use, economic losses and
                           consequential or resulting damages of any kind from
                           any cause) due to the condition or design of, or any
                           defect in, the Leased Premises or Project that exists
                           now or occurs in the future, except for Landlord's
                           gross negligence or willful misconduct;

                  (2)      any injury or damage to person or property (including
                           the resulting loss of use, economic losses and
                           consequential or resulting damages of any kind from
                           any cause) due to the Leased Premises or Project or
                           related improvements or appurtenances being out of
                           repair, or defects in or failure of pipes or wiring,
                           or backing up of drains, or the bursting or leaking
                           of pipes, faucets, and plumbing mixtures, or gas,
                           water, steam, electricity, or oil leaking, escaping,
                           or flowing into the Leased Premises, unless caused by
                           Landlord's willful misconduct or gross negligence;

                  (3)      any loss or damage caused by the acts or omissions of
                           other tenants in the Project or of any other persons,
                           excepting only the willful misconduct or gross
                           negligence of duly authorized employees and agents of
                           Landlord; or

                  (4)      any loss or damage to property or person occasioned
                           by theft, fire, act of God, public enemy, injunction,
                           riot, insurrection, war, court order, requisition,
                           order of governmental authority, and any other cause
                           beyond the control of Landlord Parties.

         (b)      Notwithstanding the foregoing or anything else to the contrary
                  contained in this Lease, the liability of Landlord to any
                  Tenant Party for any default, indemnity by, or other
                  obligation or liability of Landlord under this Lease is
                  limited to the interest of Landlord in the Project. No
                  Landlord Party has any personal liability for any amounts
                  payable or obligations performable by Landlord under this
                  Lease.

         (c)      The provisions of this Paragraph 16 shall survive the
                  expiration or earlier termination of this Lease.

                                                                         PAGE 21

<PAGE>   26

17.      TENANT'S INDEMNIFICATION OF LANDLORD: ASSUMPTION: EMPLOYEES' CLAIMS.

         (a)      Tenant shall indemnify, defend, and hold Landlord Parties
                  harmless from all fines, suits, losses, costs, liabilities,
                  claims, demands, actions, and judgments (collectively, claims)
                  arising out of or relating to any of the following:

                  (1)      any breach or default in performance of any
                           obligation on Tenant's part to be performed under
                           this Lease, whether before or during the Lease Term
                           or after its expiration or earlier termination;

                  (2)      any act, omission, negligence, or misconduct of
                           Tenant or any Tenant Party, or of any other person
                           entering upon the Leased Premises under or with the
                           express or implied invitation or permission of
                           Tenant;

                  (3)      any alterations, activities, work, or things done,
                           permitted, allowed, or suffered by Tenant Parties in,
                           at, or about the Leased Premises or the Project,
                           including the violation by Tenant or any Tenant Party
                           of any law, ordinance, or governmental order of any
                           kind; and

                  (4)      the occupancy or use by Tenant or any Tenant Party of
                           the Leased Premises or the Project.

         (b)      Tenant is not required to indemnify, defend, or hold Landlord
                  Parties harmless from any claim, demand, fine, suit, loss,
                  liability, action or judgment arising solely from Landlord's
                  gross negligence or willful misconduct (except for damage to
                  the Tenant Improvements or Tenant's personal property,
                  fixtures, furniture, and equipment in the Leased premises to
                  the extent that such damage is covered by insurance that
                  Tenant is required to carry under this Lease (or would have
                  been covered had Tenant carried the insurance required under
                  the provisions of this Lease).

         (c)      If any Landlord Party is made a party to any litigation
                  commenced against any Tenant Party or relating to this Lease
                  or to the Leased Premises, against which Tenant has agreed to
                  indemnify Landlord Parties pursuant to this Lease, then Tenant
                  shall pay all costs and expenses, including attorneys' fees
                  and court costs, incurred by or imposed upon the Landlord
                  Party by virtue of the litigation. The amount of all costs and
                  expenses, including attorney's fees and court costs, is a
                  demand obligation payable by Tenant to Landlord as additional
                  Rent bearing interest at the Interest Rate from the date of
                  payment by Landlord until paid by Tenant.

         (d)      Deleted.

         (e)      The provisions of this Paragraph 17 survive the expiration or
                  earlier termination of this Lease.

                                                                         PAGE 22
<PAGE>   27

          (f)     The indemnification provisions of this Paragraph 17 shall not
                  be construed or interpreted as in any way restricting,
                  limiting, or modifying Tenant's insurance or other obligations
                  under this Lease and is independent of Tenant's insurance and
                  other obligations under this Lease.

18.      TENANT'S INSURANCE.

         (a)      Tenant shall, at its expense, maintain at all times during the
                  Lease Term (and prior to the Lease Term with respect to
                  activities of Tenant under the Lease at the Project) insurance
                  as set forth below:

                  (1)      Commercial General Liability Insurance (1986 ISO Form
                           or its equivalent) written on an "occurrence" basis
                           with respect to the business carried on, in or from
                           the Leased Premises and Tenant's use and occupancy of
                           the Leased Premises (including a contractual
                           liability) in an amount not less than $1,000,000 per
                           occurrence and $2,000,000 general aggregate per
                           location for bodily injury and property damages (or
                           with increased limits as may be required from time to
                           time by Landlord by giving notice to Tenant) and
                           without any deductible;

                  (2)      Statutory Workers' Compensation Insurance in
                           compliance with the Worker's Compensation Laws of the
                           state in which the Leased Premises is located and
                           including at least 100/500/100 Employers Liability
                           Insurance.

                  (3)      Excess/Umbrella Liability Insurance, applying on at
                           least a "following form" basis, with a minimum limit
                           of $3,000,000 each Occurrence and Aggregate, where
                           applicable; and

                  (4)      "ISO Special Form" Property Insurance, including but
                           not limited to, coverage for:

                           (A)     All office furniture, trade fixtures, office
                                   equipment, merchandise, and all other items
                                   of Tenant's property in, on, at, or about the
                                   Leased Premises and the Building, including
                                   property installed by, for, or at the expense
                                   of Tenant;

                           (B)     Tenant Improvements; and

                           (C)     Except for Standard Improvements, all other
                                   improvements, betterments, alterations, and
                                   additions to the Leased Premises.

                           Tenant's Property Insurance must also fulfill the
                  following requirements:

                                                                         PAGE 23

<PAGE>   28

                           (AA)    It must be written on the equivalent of an
                                   ISO "Special Form" Property Insurance Form or
                                   an equivalent form acceptable to Landlord;

                           (BB)    It must include earthquake and flood as
                                   covered causes of losses;

                           (CC)    It must include an agreed amount endorsement
                                   for not less than one-hundred percent (100%)
                                   of the full replacement cost (new without
                                   deduction for depreciation) of the covered
                                   items and property; and

                           (DD)    It must have a deductible no greater than
                                   $25,000 for each loss.

                  It is the parties' intent that Tenant structure its property
                  insurance program so that no coinsurance penalty is imposed
                  and there are no valuation disputes with any insurer or with
                  Landlord. The property insurance coverage must include
                  vandalism and malicious mischief coverage.

         (b)      Tenant's policies must be written by an insurance company or
                  companies with a current A.M. Best's rating of A-IX or better
                  and be admitted to do business in the State of Texas.
                  Landlord, any mortgagees, any lessor under any ground,
                  primary, or master lease, and Landlord's property management
                  company must be named as additional insureds without
                  restriction under the liability, property and umbrella
                  policies. Tenant shall obtain a written obligation on the part
                  of each insurance company to notify Landlord at least 45 days
                  prior to cancellation, non-renewal, or material reduction of
                  the coverage.

         (c)      Tenant shall deliver copies of duly executed certificates of
                  insurance to Landlord prior to occupying any part of the
                  Leased Premises, and on an annual basis thereafter. If Tenant
                  fails to comply with these insurance requirements, Landlord
                  may obtain the required insurance and Tenant shall pay to
                  Landlord on demand as additional Rent the premium cost thereof
                  plus interest at the Interest Rate from the date of payment by
                  Landlord until paid by Tenant.

19.      LANDLORD'S INSURANCE.

         Landlord shall carry, or cause to be carried: (A) Commercial General
         Liability Insurance with limits of liability of not less than
         $1,000,000 each occurrence, single limit Bodily Injury and Property
         Damage combined; and (B) the equivalent of ISO Special Form Property
         Insurance insuring the Project for the full replacement value thereof;
         excluding Tenant Improvements and Tenant's merchandise, trade fixtures,
         furnishings, equipment, personal property, and any alterations or
         additions made by Tenant.

                                                                         PAGE 24
<PAGE>   29

20.      RIGHTS RESERVED BY LANDLORD.

         Landlord reserves the following rights, exercisable without notice and
         without liability to, and without consent of, any Tenant Party for
         damage or injury to property, persons, or business and without
         effecting an eviction, constructive or actual, or disturbance of
         Tenant's use or possession or giving rise to any claim for set-off or
         abatement of Rent:

         (a)      To change the Building's or the Project's name or street
                  address; provided Landlord shall reimburse Tenant for the cost
                  of a 1 month supply of stationery.

         (b)      To install, affix, and maintain any signs on the exterior and
                  interior of the Project.

         (c)      To designate and approve, prior to installation, all types of
                  window shades, blinds, drapes, awnings, window ventilators,
                  and similar equipment, and to control all internal lighting
                  that is visible from the exterior of the Project.

         (d)      To designate, restrict, and control all sources within the
                  Project where Tenant may obtain ice, drinking water, towels,
                  toilet supplies, catering, food and beverages, and like or
                  other services on the Leased Premises and, in general, the
                  exclusive right to designate, limit, restrict, and control any
                  business and any service in or to the Project and its tenants.

         (e)      To enter upon the Leased Premises with reasonable notice
                  (except in the case of an emergency when no notice shall be
                  required) at reasonable hours to inspect, clean, or make
                  repairs or alterations to the Leased Premises (but without any
                  obligation to do so, except as expressly specified in this
                  Lease), to make repairs or alterations to any part of the
                  Building or the Building systems (including adjacent
                  premises), to show the Leased Premises to prospective lenders,
                  purchasers, and, during the last 12 months of the Lease Term,
                  to show the Leased Premises to prospective tenants at
                  reasonable hours and, if the Leased Premises are vacant, to
                  prepare them for reoccupancy. Notwithstanding the foregoing,
                  Landlord shall not enter into areas previously designated in
                  writing by Tenant as high security areas unless (i) Landlord
                  shows cause therefor and is accompanied by a representative of
                  Tenant, or (ii) in the event of an emergency. Landlord's
                  obligations under this Lease shall be reduced to the extent of
                  Tenant's refusal to grant access to such portions of the
                  Leased Premises.

         (f)      To retain at all times, and to use in appropriate instances,
                  keys to all doors within and into the Leased Premises. No
                  locks may be changed or added without the prior consent of
                  Landlord.

         (g)      To decorate and make repairs, alterations, additions, changes,
                  or improvements, whether structural or otherwise, in and about
                  the Project, and for those purposes to enter upon the Leased
                  Premises and, during the continuance of the work, temporarily
                  close doors, entryways, public space, and corridors in the
                  Project, to interrupt or temporarily suspend Project services
                  and facilities, and to change the arrangement

                                                                         PAGE 25
<PAGE>   30

                  and location of entrances or passageways, doors and doorways,
                  corridors, elevators, stairs, toilets, or other public parts
                  of the Project, all without abatement or set off of Rent or
                  affecting any of Tenant's obligations under this Lease, so
                  long as the Leased Premises are reasonably accessible. In
                  exercising the foregoing rights, Landlord agrees to use
                  reasonable efforts not to unreasonably interfere with the
                  conduct of Tenant's business in the Leased Premises, including
                  making reasonable efforts to cause voluntary and intentional
                  total interruptions of Essential Services to occur after
                  Building Standard Hours.

         (h)      To have and retain a paramount title to the Leased Premises
                  and the Project free and clear of any act of Tenant purporting
                  to burden or encumber the Leased Premises or the Project.

         (i)      To grant to anyone the exclusive right to conduct any business
                  or render any service in or to the Project, provided the
                  exclusive right does not operate to exclude Tenant from the
                  uses expressly permitted in this Lease.

         (j)      To approve the weight, size, and location of safes, heavy
                  equipment, file cabinets, book shelves, and other heavy items
                  in and about the Leased Premises and the Project and to
                  require all those items and all furniture to be moved into and
                  out of the Project and the Leased Premises only at times and
                  in a manner specified by Landlord. Movements of Tenant's
                  property into or out of the Project and within the Project are
                  entirely at the risk and responsibility of Tenant. To require
                  permits before allowing Tenant's property to be moved into or
                  out of the Project.

         (k)      To take reasonable measures as Landlord deems advisable for
                  the security of the Project and its occupants including,
                  without limitation, the search of all persons entering or
                  leaving the Project, the evacuation of the Project for cause,
                  suspected cause, or for drill purposes, the temporary denial
                  of access to the Project, and the closing of the Project after
                  Building Standard Hours, subject to Tenant's right to
                  admittance when the Project is closed after Building Standard
                  Hours under reasonable regulations Landlord may prescribe from
                  time to time.

         (l)      To transfer, assign, or convey, in whole or in part, the
                  Project and Landlord's rights under this Lease. If Landlord
                  transfers, assigns, or conveys its rights under this Lease,
                  Landlord is released from any further obligations under this
                  Lease and Tenant shall look solely to the successor in
                  interest of Landlord for performance of the obligations of
                  "Landlord" under this Lease.

                                                                         PAGE 26
<PAGE>   31

21.  FIRE OR OTHER CASUALTY

     (a)  If the Leased Premises or any part thereof are damaged by fire or
          other casualty, Tenant shall give prompt notice thereof to Landlord.
          If the Project or the Building is so damaged by fire or other casualty
          that substantial alteration or reconstruction of the Project or the
          Building is, in Landlord's sole opinion, required (whether or not the
          Leased Premises are damaged) or if any mortgagee under a mortgage or
          deed of trust covering the Project requires that the insurance
          proceeds payable as a result of the fire or other casualty be used to
          retire the mortgage debt, Landlord may, at its sole option, terminate
          this Lease by giving Tenant notice of termination within 90 days after
          the date of the damage. If Landlord terminates this Lease under this
          Paragraph, the Rent abates as of the date of the damage.

     (b)  If Landlord does not elect to terminate this Lease, Landlord shall
          within 90 days after the date of the damage commence to repair and
          restore the Project (except that Landlord is not responsible for
          delays outside its control) to substantially the same condition in
          which it was immediately prior to the casualty. Upon such damage,
          Tenant shall assign to Landlord (or Landlord's designee) all insurance
          proceeds payable to Tenant under the property insurance required
          pursuant to Paragraph 18 (save and except proceeds paid for loss of
          Tenant's personal property) and Landlord shall repair and replace the
          Standard Improvements, Tenant Improvements and alterations installed
          in the Leased Premises; provided that Landlord shall in no event be
          obligated to expend for such repair or replacement amounts in excess
          of the insurance proceeds available to Landlord (over and above
          amounts going to the mortgagee of the Building and/or Project).
          Landlord is not liable for any inconvenience or annoyance to any
          Tenant Party or injury to the business of Tenant resulting in any way
          from casualty damage or the repairs; provided, during the time and to
          the extent the Leased Premises are unfit for occupancy, Landlord
          shall, either furnish Tenant with comparable office space at
          prevailing market rates or a fair diminution of Rent, in accordance
          with the mutual agreement of Landlord and Tenant at the time.

     (c)  If the damages are caused by the negligence or willful misconduct of
          any Tenant Party, Rent does not abate and Tenant shall pay to Landlord
          on demand as additional Rent any damages in excess of the amount paid
          by insurance proceeds received by Landlord.

22.  CONDEMNATION.

     (a)  If all or substantially all of the Project or the Building is taken
          for any public or quasi-public use under any governmental law,
          ordinance, or regulation or by right of eminent domain or is sold to
          the condemning authority in lieu of condemnation, then this Lease
          terminates as of the date which is 7 days prior to the date when
          physical

                                                                         PAGE 27
<PAGE>   32

          possession of the portion of the Building or Project is taken by the
          condemning authority. If less than all or substantially all of the
          Project or the Building is taken or sold, Landlord (whether or not the
          Leased Premises are affected) may terminate this Lease by giving
          notice to Tenant within 90 days after the right of election accrues,
          in which event this Lease terminates as of the date which is 7 days
          prior to the date when physical possession of the portion of the
          Building and Project is taken by the condemning authority.

     (b)  If this Lease is not terminated upon any taking or sale of less than
          all or substantially all of the Project:

          (1)  the Rent reduces by an amount representing that part of the Rent
               properly allocable to the portion of the Leased Premises taken or
               sold; and

          (2)  Landlord shall, at Landlord's sole expense, restore the Project
               to substantially its former condition to the extent reasonably
               deemed feasible by Landlord, but:

               (A)  Landlord's restoration obligation does not exceed the scope
                    of the work done by Landlord in originally constructing the
                    Project and installing Standard Improvements in the Leased
                    Premises; and

               (B)  Landlord is not required to spend for the work an amount in
                    excess of the amount received by Landlord as compensation or
                    damages (over and above amounts going to the mortgagee of
                    the property taken) for the part of the Project so taken.

               (C)  Landlord is entitled to receive all of the compensation
                    awarded upon a taking of any part or all of the Project,
                    including any award for the value of the unexpired Lease
                    Term. Tenant is not entitled to and expressly waives all
                    claim to any compensation; provided, Tenant is entitled to
                    receive any award for damages to the Tenant Improvements not
                    paid for by Landlord.

23.  TAXES ON TENANT'S PROPERTY.

     Tenant shall pay, and indemnify, defend, and hold Landlord harmless
     against, all taxes levied or assessed against personal property, furniture,
     fixtures, or other improvements placed by or for Tenant in the Leased
     Premises. If any taxes for which Tenant is liable are levied or assessed
     against Landlord or Landlord's property and if Landlord is required to pay
     the taxes or if the assessed value of Landlord's property is increased by
     inclusion of personal property, furniture, fixtures, or other improvements
     placed by or for Tenant in the Leased Premises and Landlord elects to pay
     the increased taxes, Tenant shall pay to Landlord on demand as

                                                                         PAGE 28
<PAGE>   33

     additional Rent that part of the taxes for which Tenant is liable under
     this Paragraph. If Landlord is advised of any increase in property
     valuation which could give rise to a property tax increase for which
     Landlord is entitled to indemnification under this Paragraph 23, then
     Landlord shall promptly notify Tenant of such increase and Tenant shall
     thereafter have the right to contest such increase provided Tenant contests
     such increase in accordance with all applicable laws as to Tenant's
     personal property only and Tenant either pays the resulting tax increase
     before it becomes due or provides Landlord with adequate security for the
     payment of such tax and any penalty and interest should the contest be
     denied.

24.  WAIVER OF SUBROGATION.

     Each party waives all claims that arise or may arise in its favor against
     the other party, or anyone claiming through or under them, by way of
     subrogation or otherwise, during the Lease Term or any extension or renewal
     thereof, for all losses of, or damage to, any of its property (whether or
     not the loss or damage is caused by the fault or negligence of the other
     party or anyone for whom the other party is responsible), which loss or
     damage is covered by valid and collectible fire and extended coverage
     insurance policies, to the extent that the loss or damage is recovered
     under the insurance policies. These waivers are in addition to, and not in
     limitation of, any other waiver or release in this Lease with respect to
     any loss or damage to property of the parties. Since these mutual waivers
     preclude the assignment of any claim by way of subrogation (or otherwise)
     to an insurance company (or any other person), each party shall immediately
     give each insurance company issuing to it policies of fire and extended
     coverage insurance written notice of the terms of these mutual waivers, and
     have the insurance policies properly endorsed, if necessary, to prevent the
     invalidation of the insurance coverages by reason of these waivers.

25.  SURRENDER UPON TERMINATION OR EXPIRATION; HOLDOVER.

     (a)  Upon the Expiration Date or any earlier termination of this Lease,
          Tenant shall: (1) surrender to Landlord possession of the Leased
          Premises in good repair and condition, reasonable wear and tear and
          damages or destruction by any insured casualty excepted, and (2)
          deliver to Landlord all keys to the Leased Premises and all parking
          access cards. If Tenant does not immediately surrender possession,
          Landlord may enter upon and take possession of the Leased Premises and
          expel or remove Tenant and any other person who may be occupying the
          Leased Premises, or any part thereof, by force if necessary, without
          having any civil or criminal liability therefor.

     (b)  If Tenant or any of its successors in interest continues to hold any
          part of the Leased Premises after the termination of this Lease, the
          holding over is a tenancy at sufferance at a monthly rental equal to
          175% of the monthly Minimum Rent payable at the time of termination,
          plus the payment of all other Rent payable under this Lease. While
          Tenant or its successor continues to hold the Leased Premises after
          the

                                                                         PAGE 29
<PAGE>   34

          termination of this Lease, the tenancy is subject to all terms of this
          Lease; provided, all expansion rights, first refusal rights, first
          notice rights, first offer rights, and renewal rights automatically
          terminate. Landlord shall have the right to terminate such tenancy at
          any time at will on one (1) day notice.

     (c)  No payments of money by Tenant to Landlord after the termination of
          this Lease reinstate, continue, or extend the Lease Term and no
          extension of this Lease after the termination or expiration thereof is
          valid unless it is reduced to writing and signed by Landlord and
          Tenant. Nothing in this Paragraph may be construed to give Tenant the
          right to hold over beyond the Expiration Date or any earlier
          termination of this Lease or preclude Landlord from having the right
          to dispossess or otherwise terminate Tenant's right of possession. Any
          month-to-month tenancy is terminable upon notice from Landlord.

26.  REMOVAL OF TENANT'S PROPERTY.

     (a)  All furniture, movable trade fixtures, and equipment installed by or
          on behalf of Tenant remains the property of Tenant and must be removed
          by Tenant at its sole risk and expense at the termination of this
          Lease, but may not be removed prior to the termination of this Lease
          without Landlord's prior consent. Any removal of Tenant's property
          must be accomplished in a good and workmanlike manner so as not to
          damage the Leased Premises or the Project. Tenant, or Landlord at
          Tenant's expense, shall repair any damage to the Leased Premises or
          the Project caused by any removal. All furniture, movable trade
          fixtures, and equipment installed by Tenant not removed within 15 days
          after termination of the Lease are conclusively presumed to be
          abandoned by Tenant. Landlord may, at its option, take the possession
          of the property (including any special use improvements) and either
          (1) declare it to be the property of Landlord by notice to Tenant or
          (2) at the sole risk and expense of Tenant and without payment of any
          compensation to Tenant, remove it or any part thereof in any manner
          that Landlord chooses and store, sell, or otherwise dispose of it
          without incurring liability to Tenant or any other person. All amounts
          payable to Landlord under this Paragraph plus interest at the Interest
          Rate from date of payment by Landlord until paid by Tenant are due on
          demand as additional Rent.

     (b)  Upon request of Landlord, Tenant shall also remove, at its sole risk
          and expense, any special use improvements installed by or on behalf of
          Tenant in connection with the completion of the Tenant Finish Work (as
          defined in EXHIBIT F), any Additional Work, or otherwise. The term
          SPECIAL USE IMPROVEMENTS means all special improvements installed
          specifically for use by Tenant and includes, without limitation,
          telephone and data cables, computer floors and cables, cafeteria
          equipment, telephones and telephone equipment, supplemental air
          conditioning units and related equipment, equipment supplying excess
          electricity to the Leased Premises, and similar items. Any removal
          must be accomplished in a good and

                                                                         PAGE 30
<PAGE>   35

          workmanlike manner so as not to damage the Leased Premises or the
          Project. Tenant, or Landlord at Tenant's expense, shall repair any
          damage to the Leased Premises or the Project caused by any removal.

27.  EVENTS OF DEFAULT.

     The following are events of default (EVENTS OF DEFAULT) by Tenant under
     this Lease:

     (a)  Tenant fails to pay any Rent when due and the failure continues for a
          period of 5 days.

     (b)  Tenant fails to comply with any of the terms of this Lease, other than
          the payment of Rent, and does not cure the failure within 20 days
          after Landlord delivers notice of the failure to Tenant or, if such
          failure is one which cannot be cured within such 20 day period, Tenant
          fails to begin curing such failure within such 20 day period and
          diligently pursue such cure to completion within 40 days after the
          expiration of such 20 day period.

     (c)  Tenant or Guarantor becomes insolvent, makes a transfer in fraud of
          creditors, commits any act of bankruptcy, makes an assignment for the
          benefit of creditors, or admits in writing its inability to pay its
          debts as they become due.

     (d)  Tenant or Guarantor files a petition under any section or chapter of
          the Bankruptcy Code of the United States, as amended, or under any
          similar law or statute of the United States or any state thereof, or
          Tenant or Guarantor is adjudged bankrupt or insolvent in proceedings
          filed against Tenant or Guarantor, or a petition or answer proposing
          the adjudication of Tenant or Guarantor as a bankrupt or its
          reorganization under any present or future federal or state bankruptcy
          or similar law is filed in any court and the petition or answer is not
          discharged or denied within 120 days after filing.

     (e)  A receiver or trustee is appointed for all or substantially all of the
          assets of Tenant or Guarantor or of the Leased Premises or of any of
          Tenant's property located therein in any proceeding brought by Tenant
          or Guarantor, or any receiver or trustee is appointed in any
          proceeding brought against Tenant or Guarantor and is not discharged
          within 120 days after appointment or Tenant or Guarantor shall consent
          to or acquiesce in the appointment.

     (f)  Tenant, if a natural person, dies or becomes incapacitated or, if
          Tenant is not a natural person, Tenant is dissolved or ceases to
          exist.

     (g)  Tenant's leasehold estate is taken on execution or other process of
          law in any action against Tenant.

                                                                         PAGE 31
<PAGE>   36

     (h)  Tenant does not conduct its business in any substantial portion of the
          Leased Premises for more than 5 days.

28.  LANDLORD'S REMEDIES.

     If an Event of Default occurs, Landlord may then or any time thereafter
     while the Event of Default continues and without any further notice or
     opportunity to cure except as expressly set forth in this Paragraph pursue
     any one or more of the following remedies:

     (a)  Terminate this Lease (without terminating Tenant's obligation to pay
          Rent for the balance of the Lease Term) by giving notice to Tenant, in
          which event Tenant shall immediately surrender the Leased Premises to
          Landlord. If Tenant fails to surrender the Leased Premises, Landlord
          may, without prejudice to any other remedy it has for possession or
          arrearages in Rent, take possession of the Leased Premises and expel
          or remove Tenant and any other person occupying the Leased Premises,
          or any part thereof, without being liable for prosecution or any claim
          of damages. Tenant shall pay to Landlord on demand as additional Rent
          the amount of all loss and damage Landlord suffers by reason of the
          termination, whether through inability to relet the Leased Premises on
          satisfactory terms or otherwise. Except to the extent required by law,
          Landlord has no duty to re-let the Leased Premises. Landlord's damages
          specifically include, but are not limited to: (1) all reasonable
          expenses necessary to re-let the Leased Premises including the cost of
          renovating, repairing, and altering the Leased Premises for a new
          tenant or tenants, advertisements, and brokerage fees; and (2) any
          increase in insurance premiums caused by the vacancy of the Leased
          Premises. Nothing in this Lease limits Landlord's right to prove and
          obtain in bankruptcy or insolvency proceedings damages by reason of
          the termination of this Lease in an amount equal to the maximum
          allowed by any statute or rule of law in effect at the time when the
          damages are to be proved, whether or not the amount is greater, equal
          to, or less than the amount of the loss or damages referred to above.

     (b)  Take possession of the Leased Premises and remove Tenant or any other
          person occupying the Leased Premises, or any part thereof, without
          having any civil or criminal liability and without terminating this
          Lease. Landlord may (but is under no obligation, except as may be
          required by law, to) re-let the Leased Premises or any part thereof
          for the account of Tenant, in the name of Tenant or Landlord or
          otherwise, without notice to Tenant for a term or terms (which may be
          greater or less than the period that would otherwise have constituted
          the balance of the Lease Term) and on conditions (which may include
          concessions or free rent) and for uses as Landlord in its sole
          discretion may determine. Landlord may collect and receive any rents
          payable by reason of any re-letting. Tenant shall pay Landlord on
          demand as additional Rent all reasonable expenses necessary to re-let
          the Leased Premises, which includes the cost of renovating, repairing,
          and altering the Leased Premises for a new tenant or tenants,
          advertisements, and brokerage fees, as well as any deficiency

                                                                         PAGE 32
<PAGE>   37

          that may arise by reason of the reletting. Landlord is not liable for
          any failure to relet the Leased Premises or any part thereof or for
          any failure to collect any Rent due upon any re-letting. No taking of
          possession of the Leased Premises by Landlord is an election on
          Landlord's part to terminate this Lease unless a notice of termination
          is given to Tenant under subparagraphs (a) or (e).

     (c)  Enter upon the Leased Premises without having any civil or criminal
          liability and do whatever Tenant is obligated to do under the terms of
          this Lease. Tenant shall reimburse Landlord on demand as additional
          Rent for any expenses Landlord incurs in performing Tenant's
          obligations under this Lease, together with interest at the rate of
          18% per annum from the date incurred until repaid by Tenant. Landlord
          is not liable for any damages resulting to Tenant from Landlord's
          actions or omissions in performing Tenant's obligations, whether
          caused by the negligence of Landlord or otherwise.

     (d)  Interrupt or cause the interruption of any utility service serving the
          Leased Premises, deactivate Tenant's parking access cards, suspend
          elevator service to the Leased Premises, remove, alter, or change any
          door, window, attic hatchway cover to the Leased Premises, or any
          lock, latch, hinge, hinge pin, doorknob, or other mechanism connected
          to any door, window, or attic hatchway cover to the Leased Premises,
          and intentionally prevent Tenant from entering the Leased Premises
          without resort to judicial process. Landlord is under no obligation to
          restore any door, window, or attic hatchway cover or any lock, latch,
          hinge, hinge pin, doorknob, or other mechanism attached thereto or to
          deliver or make available to Tenant any key to any door, window, or
          attic hatchway cover until Tenant fully cures all Events of Default
          then existing under this Lease.

     (e)  Terminate this Lease and forthwith repossess the Leased Premises and
          remove all persons or property therefrom, and be entitled to recover
          forthwith as damages a sum of money equal to the total of (i) the cost
          of recovering the Leased Premises (including, without limitation,
          attorneys' fees and costs of suit), (ii) the cost as reasonably
          estimated by Landlord of any alterations of, or repairs to, the Leased
          Premises which are necessary or proper to prepare the same for
          reletting, (iii) the unpaid Rent owed at the time of termination, plus
          interest thereon from due date at the rate of 18% per annum, (iv) the
          present value of the balance of the Rent for the remainder of the Term
          less the present value of the fair market rental value (and in
          computing the fair market rental value the factors taken into account
          shall include without limitation the market rental concessions and the
          time necessary to relet the Leased Premises) of the Leased Premises
          for said period (in each case using a discount rate of 8% per annum),
          and (v) any other sum of money and damages owed by Tenant to Landlord.

                                                                         PAGE 33
<PAGE>   38

     (f)  If Tenant violates Section 27 (h), then Landlord, as its sole and
          exclusive remedy, shall have the right, but not the obligation, at
          Landlord's sole option, to terminate this Lease by delivering to
          Tenant 30 days' prior written notice of the effective date of such
          termination.

     No repossession of or reentering all or any part of the Leased Premises,
     and no re-letting of the Leased Premises or any part thereof, relieves
     Tenant or Guarantor of any liabilities or obligations under this Lease, all
     of which survive repossession or re-entering by Landlord. If Landlord
     repossesses or re-enters all or any part of the Leased Premises after an
     Event of Default, Tenant shall pay to Landlord the Rent required to be paid
     by Tenant. No right or remedy of Landlord under this Lease is intended to
     be exclusive of any other right or remedy. Each right and remedy of
     Landlord is cumulative and all other rights or remedies under this Lease or
     now or hereafter existing at law, in equity or by statute. In addition to
     other remedies provided in this Lease, Landlord is entitled, to the extent
     permitted by applicable law, to injunctive relief in case of the violation,
     or attempted or threatened violation, of any of the terms of this Lease, or
     to a decree compelling specific performance of the terms of this Lease.
     Notwithstanding anything in this Lease to the contrary, if Landlord is
     deemed to have a duty to mitigate its damages arising from a default by
     Tenant under this Lease, then Landlord's duty to mitigate shall be limited
     to using reasonable and good faith efforts to relet the Leased Premises,
     which duty to relet the Leased Premises shall not (i) require Landlord to
     give priority to the Leased Premises over other premises owned or managed
     by Landlord or its affiliates, (ii) require Landlord to relet for less than
     market rent, or (iii) require Landlord to relet to a tenant (or for a use)
     which is not in keeping with the first-class character of the Project.

29.  NO IMPLIED WAIVER.

     The failure of Landlord or Tenant to insist at any time upon the strict
     performance of any of the terms of this Lease or to exercise any option,
     right, power, or remedy contained in this Lease is not a waiver of the
     right or remedy for the future. The waiver of any breach of this Lease or
     violation of the Rules and Regulations attached to this Lease does not
     prevent a subsequent act, which would have originally constituted a breach
     or violation, from having all the force and effect of an original breach or
     violation. No express waiver affects any terms other than the ones
     specified in the waiver and those only for the time and in the manner
     specifically stated. Acceptance by Landlord of any Rent after the breach of
     any of the terms of this Lease or violation of any Rule or Regulation is
     not a waiver of the breach or violation or the right to collect applicable
     late charges and interest, and no waiver by Landlord of any of the terms of
     this Lease is effective unless expressed in writing and signed by Landlord.

                                                                         PAGE 34
<PAGE>   39

30.  WAIVER BY TENANT.

     Tenant waives and surrenders for itself and all persons or entities
     claiming by, through, and under it, including creditors of all kinds: (A)
     any right and privilege which it or any of them has under any present or
     future constitution, statute, or rule of law to redeem the Leased Premises
     or to have a continuance of this Lease for the Lease Term after termination
     of Tenant's right of occupancy by order or judgment of any court or by any
     legal process or writ, or under the terms of this Lease; (B) the benefits
     of any present or future constitution, statute, or rule of law that exempts
     property from liability for debt or for distress for Rent; (C) any
     provision of law relating to notice or delay in levy of execution in case
     of eviction of a tenant for nonpayment of Rent; (D) any rights, privileges,
     and liens set out under Sections 91.004 and 93.003 of the Texas Property
     Code (as amended), and Tenant exempts Landlord from any liability or duty
     thereunder; and (E) any rights of Tenant to contest reappraisals of the
     Project (but not ad valorem taxes on Tenant's personal property in the
     Leased Premises) under Sections 41.143 and 42.015 of the Texas Tax Code (as
     amended).

31.  ATTORNEYS' FEES AND LEGAL EXPENSES.

     If either party files litigation concerning the interpretation or
     enforcement of this Lease, the prevailing party is entitled to recover from
     the losing party the prevailing party's reasonable attorneys' fees, court
     costs, and expenses, whether at the trial or appellate level.

32.  SUBORDINATION.

     (a)  This Lease and all rights of Tenant under this Lease are subject and
          subordinate to:

          (1)  any mortgage or deed of trust secured by a first lien against the
               Project;

          (2)  all increases, renewals, modifications, consolidations,
               replacements, and extensions of any first lien mortgage or deed
               of trust;

          (3)  all ground, primary, or master leases now or hereafter affecting
               the Building, the Project, or any portion thereof; and

          (4)  all leases, restrictions, easements, and encumbrances recorded in
               the Real Property Records of Dallas County, Texas, to the extent
               they validly affect the Project.

          Tenant shall, upon demand at any time or times, execute, acknowledge,
          and deliver to Landlord, or to Landlord's first mortgagee or any
          lessor, any instruments that may be necessary or proper to more
          effectively effect or evidence this subordination to any first
          mortgage, first deed of trust, or ground, primary, or master lease.

                                                                         PAGE 35
<PAGE>   40

     (b)  If any first mortgage or first deed of trust against the Project is
          foreclosed, or if any ground, primary, or master lease is terminated,
          Tenant shall, upon request by the purchaser at the foreclosure sale or
          the lessor under any ground, primary or master lease:

          (1)  attorn to the purchaser or lessor and recognize the purchaser or
               lessor as "Landlord" under this Lease; and

          (2)  execute, acknowledge, and deliver to the purchaser or lessor an
               instrument in appropriate form acknowledging the attornment.

     (c)  Tenant waives the provisions of any statute or rule of law, now or
          hereafter in effect, that may give or purport to give Tenant any right
          or election to terminate or otherwise adversely affect this Lease and
          the obligations of Tenant under this Lease if any foreclosure sale or
          ground, primary, or master lease termination occurs. This Lease is not
          affected in any way whatsoever by any foreclosure sale or ground,
          primary or master lease termination unless the holder(s) of the
          indebtedness or other obligations secured by the mortgages or deeds of
          trust declare otherwise.

     (d)  Notwithstanding the foregoing, any such first mortgagee or holder of a
          first deed of trust or lessor under a ground, primary, or master lease
          shall have the right, unilaterally, at any time to fully or partially
          subordinate any such mortgage, deed of trust, or ground, primary or
          master lease or other security instruments to this Lease on such terms
          and subject to such conditions as such first mortgagee or ground,
          primary, or master lessor may consider appropriate in its sole
          discretion. Upon request, Tenant shall execute an instrument
          confirming any such full or partial subordination.

     (e)  Notwithstanding the foregoing, Tenant shall have the right to approve
          any subordination and non-disturbance agreements required of Tenant,
          provided that Tenant hereby approves any subordination and
          non-disturbance agreement that is not materially different from the
          Subordination, Non-Disturbance and Attornment Agreement entered into
          by Tenant and Landlord's First Mortgagee in connection with the
          execution and delivery of this Lease.

33.  QUIET ENJOYMENT.

     If Tenant pays the Rent when due and timely performs all other obligations
     of Tenant under this Lease, then Tenant may peaceably and quietly enjoy the
     Leased Premises during the Lease Term without any disturbance from Landlord
     or from any other person claiming by, through, or under Landlord, but not
     otherwise, subject to the terms of this Lease and of the deeds of trust,
     mortgages, ground, primary, or master leases, pedestrian tunnel agreements,

                                                                         PAGE 36
<PAGE>   41

     skybridge agreements, parking garage operating agreements, ordinances,
     leases, utility easements, and agreements affecting the Project.

34.  NOTICE OF LANDLORD'S DEFAULT.

     If any act or omission by Landlord occurs that would give Tenant the right
     to damages from Landlord or the right to terminate this Lease due to
     constructive or actual eviction from all or part of the Leased Premises or
     otherwise, Tenant may not sue for damages or exercise any right to
     terminate until (A) it gives notice of the act or omission to Landlord and
     Landlord's first mortgagee, or ground, primary, or master lessor, if any,
     and (B) a reasonable period of time for remedying the act or omission
     elapses following the giving of the notice, during which time Landlord, its
     agents, employees, first mortgagee or ground, primary, or master lessor,
     are entitled to enter the Leased Premises and cure the act or omission.
     During the period after the giving of the notice and during the curing of
     the act or omission, the Rent payable by Tenant abates only to the extent
     that any part of the Leased Premises is untenantable. For purposes of this
     Paragraph, Landlord's first mortgagee's name and address for notice
     purposes are: Pacific-St. Paul Partners, L.P., c/o Dang Phan, Donaldson,
     Lufkin & Jenrette, 277 Park Avenue, 19th Floor, New York, NY 10172.

35.  RULES AND REGULATIONS.

     All Tenant Parties must comply with the Rules and Regulations (as changed
     from time to time as hereinafter provided) attached as EXHIBIT C. Landlord
     may at any time make reasonable changes to the Rules and Regulations or
     promulgate other Rules and Regulations as Landlord deems advisable for the
     safety, care, cleanliness, or orderliness of the Project. No changes are
     effective until a copy of the changes is delivered to Tenant. Tenant is
     responsible for the compliance with the Rules and Regulations by all Tenant
     Parties. Landlord shall use reasonable efforts to enforce compliance by all
     other tenants with the Rules and Regulations from time to time in effect,
     but Landlord is not responsible to Tenant for failure of any person to
     comply with the Rules and Regulations.

36.  ESTOPPEL CERTIFICATE.

     Tenant shall, from time to time on not less than 10 days' prior notice by
     Landlord, execute, acknowledge, and deliver to Landlord an Estoppel
     Certificate in substantially the form attached as Exhibit E.

37.  NOTICES.

     All notices, requests, approvals, and other communications required or
     permitted to be delivered under this Lease must be in writing and are
     effective:

                                                                         PAGE 37
<PAGE>   42

     (a)  on the business day sent if sent by telecopier prior to 5:00 p.m.,
          Dallas, Texas time, and the sending telecopier generates a written
          confirmation of sending;

     (b)  the next business day after delivery on a business day to a
          nationally-recognized-overnight-courier service for prepaid overnight
          delivery;

     (c)  if orderly delivery of the mail is not then disrupted or threatened,
          in which event some method of delivery other than the mail must be
          used, 3 days after being deposited in the United States mail,
          certified, return receipt requested, postage prepaid; or

     (d)  upon receipt if delivered personally or by any method other than by
          telecopier (with written confirmations
          nationally-recognized-overnight-courier service, or mail);

     in each instance addressed to Landlord or Tenant, as the case may be, at
     the address specified in Paragraph 1 of this Lease, or to any other address
     either party may designate by 10 days' prior notice to the other party.

     With respect to any default notice to Landlord, a copy of the notice must
     be sent on the same date as sent to Landlord to:

                         Baker & Botts, L.L.P.
                         800 Trammell Crow Center
                         2001 Ross Avenue
                         Dallas, Texas 75201
                         Attention: Jonathan W. Dunlay
                         Telecopier No.: (214) 953-6503

38.  HAZARDOUS MATERIALS.

     (a)  Tenant may not:

          (1)  cause or permit the escape, disposal, or release in the Leased
               Premises or the Project of any biologically active, chemically
               active, or hazardous substances or materials (collectively,
               HAZARDOUS SUBSTANCES); or

          (2)  bring, or permit any other Tenant Party to bring, any hazardous
               substances into the Leased Premises or the Project.

          The term HAZARDOUS SUBSTANCES includes, but is not limited to, those
          described in the Comprehensive Environmental Response Compensation and
          Liability Act of 1980, as amended, 42 U.S.C. Section 9601 et seq., the
          Resource Conservation and Recovery Act, as amended, 42 U.S.C. Section
          6901 et seq., the Texas Water Code,

                                                                         PAGE 38
<PAGE>   43

          the Texas Solid Waste Disposal Act, and other applicable state or
          local environmental laws and the regulations adopted under those acts.

          (b)  If any lender or governmental agency requires testing to
               ascertain whether or not a release of hazardous substances has
               occurred in or on the Leased Premises or the Project based on
               probable cause that a release occurred and was caused by any
               Tenant Party, then Tenant shall reimburse the reasonable costs of
               the testing to Landlord on demand as additional Rent.

          (c)  Tenant shall execute affidavits, representations, and the like
               from time to time at Landlord's request concerning Tenant's best
               knowledge and belief regarding the presence of hazardous
               substances in the Leased Premises and the Project.

          (d)  Tenant shall indemnify Landlord in the manner elsewhere provided
               in this Lease from any release of hazardous substances in or on
               the Leased Premises or the Project caused or permitted by any
               Tenant Party.

          (e)  Landlord shall not cause or permit the escape, disposal or
               release in the Leased Premises or the Project of any hazardous
               substances in violation of law or bring any hazardous substances
               into the Leased Premises or the Project in violation of laws.

          (f)  These covenants survive the expiration or earlier termination of
               this Lease.

39.  BUSINESS PURPOSE.

     Tenant represents that this Lease is executed by Tenant, and all
     obligations of Tenant arising out of this Lease are, primarily for business
     or commercial purposes and not for personal, family, or household purposes.

40.  SEVERABILITY.

     Each of the terms of this Lease is, and must be construed to be, separate
     and independent. If any of the terms of this Lease or its application to
     any person or circumstances is to any extent invalid and unenforceable, the
     remainder of this Lease, or the application of that term to persons or
     circumstances other than those as to which it is invalid or unenforceable,
     are not affected thereby.

41.  NO MERGER.

     The fact that the same person may acquire or hold, directly or indirectly,
     this Lease or the leasehold estate hereby created or any interest in this
     Lease or in the leasehold estate as well as the fee estate in the Leased
     Premises or any interest in the fee estate does not cause a

                                                                         PAGE 39
<PAGE>   44

     merger of this Lease or of the leasehold estate hereby created with the fee
     estate in the Leased Premises.

42.  FORCE MAJEURE.

     When this Lease prescribes a period of time for action to be taken by
     Landlord or Tenant, Landlord or Tenant is not liable or responsible for,
     and there is excluded from the computation for the period of time, any
     delays due to strikes, acts of God, shortages of labor or materials, war,
     governmental laws, regulations, restrictions, or any other cause of any
     kind that is beyond the control of Landlord or Tenant, provided that the
     foregoing shall not apply to Tenant's obligation to pay amounts payable
     under this Lease, which amounts shall be paid on the dates and within the
     time periods provided in this Lease without extension or delay, except as
     provided in Section 8(c).

43.  BROKERAGE; MUTUAL INDEMNITIES.

     (a)  Tenant warrants that it has had no dealings with any broker or agent
          in connection with the negotiation or execution of this Lease other
          than Tenant's Broker and Landlord's Broker (collectively, BROKERS).
          Tenant shall indemnify, defend, and hold Landlord harmless against all
          costs, expenses, attorneys' fees, or other liability for commissions
          or other compensation or charges claimed by any broker or agent other
          than Brokers claiming by, through, or under Tenant with respect to
          this Lease or any renewal or extension or with respect to any
          expansion of the Leased Premises.

     (b)  Landlord warrants that it has had no dealings with any broker or agent
          in connection with the negotiations or execution of this Lease other
          than Brokers. Landlord shall indemnify, defend, and hold Tenant
          harmless against all costs, expenses, attorneys' fees, or other
          liability for commissions or other compensation or charges claimed by
          any broker or agent, including Brokers, claiming by, through or under
          Landlord with respect to this Lease or any renewal or extension or
          with respect to any expansion of the Leased Premises.

     (c)  Any brokerage commissions payable to Brokers are payable by Landlord
          pursuant to the terms of separate agreements between Landlord and
          Brokers.

44.  GENDER.

     Words of any gender used in this Lease include any other gender and words
     in the singular number include the plural, unless the context otherwise
     requires.

                                                                         PAGE 40
<PAGE>   45

45.  JOINT AND SEVERAL LIABILITY.

     If there is more than one Tenant, the obligations imposed upon Tenant under
     this Lease are joint and several. If Tenant is a general or limited
     partnership, each general partner of Tenant is jointly and severally liable
     for the obligations imposed upon Tenant under this Lease.

46.  NO REPRESENTATIONS.

     LANDLORD OR LANDLORD'S AGENTS MADE NO REPRESENTATIONS OR PROMISES WITH
     RESPECT TO THE LEASED PREMISES OR THE PROJECT EXCEPT AS EXPRESSLY SET FORTH
     IN THIS LEASE. NO RIGHTS, EASEMENTS, OR LICENSES ARE ACQUIRED BY TENANT BY
     IMPLICATION OR OTHERWISE EXCEPT AS EXPRESSLY SET FORTH IN THIS LEASE.

47.  ENTIRE AGREEMENT; AMENDMENTS.

     This Lease is the entire agreement between the parties. All negotiations,
     considerations, representations, and understandings between Landlord and
     Tenant are incorporated in this Lease. No act or omission of any employee
     or agent of Landlord or of Landlord's Broker may alter, change, or modify
     any of the terms of this Lease. No amendment or modification of this Lease
     is binding unless expressed in a written instrument executed by Landlord
     and Tenant.

48.  PARAGRAPH HEADINGS.

     The paragraph headings in this Lease are for convenience only and in no way
     enlarge or limit the scope or meaning of the paragraphs in this Lease.

49.  BINDING EFFECT.

     All terms of this Lease are binding upon the respective heirs, personal
     representatives, successors, and, to the extent assignment is permitted,
     assigns of Landlord and Tenant.

50.  EXHIBITS.

     The following exhibits are attached to and made a part of this Lease:

               EXHIBIT A [Leased Premises],

               EXHIBIT B [Land],

               EXHIBIT C [Project Rules and Regulations],

               EXHIBIT D [Contractor Insurance Requirements],

               EXHIBIT E [Estoppel Certificate],

               EXHIBIT F [Tenant Finish Construction,] and

               EXHIBIT G [Janitorial Specifications]

                                                                         PAGE 41
<PAGE>   46

51.  COUNTERPARTS.

     This Lease may be executed in two or more counterparts, each of which is
     deemed an original and all of which together constitute one and the same
     instrument.

52.  RENTAL TAX.

     Tenant shall pay as additional Rent all licenses, charges, and other fees
     of every kind and nature as and when they become due arising out of or in
     connection with Tenant's use and occupancy of the Leased Premises and the
     Project (including the parking garages), including but not limited to
     license fees, business license taxes, and privilege, sales, excise, or
     other taxes (other than income) imposed upon Rent or upon services provided
     by Landlord or upon Landlord in an amount measured by Rent received by
     Landlord.

53.  PARKING.

     (a)  During the Lease Term, Landlord shall provide, twenty-seven (27)
          unreserved parking spaces in the Off-Site Garage and four (4) spaces
          in the On-Site Garage, which four (4) spaces shall, at Tenant's
          option, be either reserved or unreserved spaces, and, subsequent to
          availability, on a month-to-month basis, up to sixty (60) additional
          unreserved spaces in the Off-Site Garage ("Temporary Spaces"),
          specified by Landlord and issue to Tenant one parking access card for
          each parking space. As rental for the parking spaces, Tenant shall pay
          (i) $75.00 per month (plus any applicable sales tax) for the first
          twenty-four (24) months of the Lease Term, $90.00 per month (plus any
          applicable sales tax) for months twenty-five (25) through sixty (60)
          of the Lease Term, and the parking charge (plus any applicable sales
          tax) then imposed by Landlord thereafter for the unreserved parking
          spaces in the Off-Site Garage, (ii) $125.00 per month (plus any
          applicable sales tax) for the first twenty-four (24) months of the
          Lease term, $135.00 per month (plus any applicable sales tax) for
          months twenty-five (25) through sixty (60) of the Lease Term, and the
          parking charge (plus any applicable sales tax) then imposed by
          Landlord thereafter for the unreserved parking spaces in the On-Site
          Garage, and (iii) $225.00 per month (plus any applicable sales tax)
          for the first twenty-four (24) months of the Lease Term, $235.00 per
          month (plus any applicable sales tax) for months twenty-five (25)
          through sixty (60) of the Lease Term, and the parking charge (plus any
          applicable sales tax) then imposed by Landlord thereafter for the
          reserved parking spaces in the On-Site Garage. Prior to issuance of
          the parking access cards, Tenant must deliver to Landlord a list of
          the automobile license numbers of Tenant's employees who will be using
          the cards, together with Landlord's then current per card deposit.
          This deposit is forfeited to Landlord if any card is lost or damaged
          or not returned to

                                                                         PAGE 42
<PAGE>   47

          Landlord on request and a new deposit must be delivered to Landlord
          before a replacement card is issued to Tenant.

     (b)  Except to the extent Tenant has exercised its option to lease reserved
          parking spaces as provided in Subparagraph (a) above, Tenant is not
          assigned designated parking spaces, but is permitted to use whatever
          unreserved stalls are available, on a first-come, first-served basis
          in areas of the parking garage designated from time to time by
          Landlord. If for any reason Landlord fails or is unable to provide
          parking spaces to Tenant or parking spaces in the parking garage are
          not available for use by Tenant Parties, this failure or inability is
          not a default by Landlord under this Lease; provided, however, that
          Landlord shall not intentionally transfer the parking garages in a
          manner designed to terminate Tenant's parking rights. If parking
          spaces are not available to Tenant due to intentional acts of Landlord
          for more than 10 consecutive days, Landlord shall use reasonable
          efforts to make available to Tenant sufficient substitute unassigned
          parking spaces (in the amount of those spaces not available to Tenant)
          within a one-half (1/2) mile radius until such parking spaces are
          again available to Tenant.

     (c)  All Tenant Parties must comply with all traffic, security, safety, and
          other rules and regulations promulgated from time to time by the
          operator of the garage.

     (d)  During any renewal or extension of the Lease Term or during any
          holdover after the termination of this Lease, Landlord reserves the
          right to charge Tenant the parking charge (plus any applicable sales
          tax) then imposed by Landlord for parking at the Project.

     (e)  Upon thirty (30) days prior written notice, Landlord has the right to
          terminate any of the Temporary Spaces at any time and from time to
          time, including without limitation, at times necessary or required for
          purposes of granting to new tenants of the Building rights to park in
          the Off-Site Garage.

54.  TENANT'S SERVICE PROVIDERS.

     Tenant shall cause all moving companies and other entities providing
     services to Tenant to deliver evidence satisfactory to Landlord that the
     insurance specified in EXHIBIT D is in force prior to entering the Project.

55.  SECURITY DISCLAIMER.

     ANY SECURITY MEASURES PROVIDED BY LANDLORD MAY NOT BE TREATED BY TENANT AS
     A GUARANTEE AGAINST CRIME. LANDLORD DOES NOT MAKE, AND TENANT WAIVES, ANY
     GUARANTY OR WARRANTY, EXPRESSED OR IMPLIED, WITH RESPECT TO SECURITY AT THE
     PROJECT OR IN THE BUILDING,

                                                                         PAGE 43
<PAGE>   48

     OR THAT ANY SECURITY MEASURES WILL PREVENT OCCURRENCES OR CONSEQUENCES OF
     CRIMINAL ACTIVITY. ANY MECHANICAL SECURITY DEVICES CAN BE RENDERED
     INOPERATIVE AT ANY TIME. LANDLORD IS NOT RESPONSIBLE FOR A TEMPORARY
     FAILURE OF SUCH DEVICES. IF SUCH DEVICES ARE IN NEED OF REPAIR, TENANT
     WAIVES ALL WARRANTIES, EXPRESSED OR IMPLIED, WITH RESPECT TO LANDLORD'S
     REPAIR OF SUCH DEVICES. LANDLORD'S INSTALLATION OR USE OF ANY SECURITY
     MEASURE DOES NOT CONSTITUTE A VOLUNTARY UNDERTAKING OR AGREEMENT BY
     LANDLORD TO PROVIDE SECURITY TO ANY TENANT PARTY. LANDLORD MAY MODIFY,
     REDUCE OR ELIMINATE THE USE OF ANY SECURITY MEASURE AT ANY TIME WITHOUT
     NOTICE TO TENANT. NEITHER LANDLORD NOR ITS AGENTS, EMPLOYEES OR
     REPRESENTATIVES ARE LIABLE IN ANY WAY FOR ANY DISRUPTION IN THE OPERATION
     OR PERFORMANCE OF ANY SECURITY MEASURE. LANDLORD DOES NOT MAKE, AND TENANT
     WAIVES, ANY GUARANTY OR WARRANTY THAT THE PRESENCE OF ANY SECURITY MEASURE
     AT THE PROJECT OR IN THE BUILDING IN ANY WAY INCREASES THE PERSONAL
     SECURITY OF ANY TENANT PARTY OR ITS PROPERTY. LANDLORD IS NOT LIABLE TO ANY
     TENANT PARTY FOR ANY INJURY, DAMAGE OR LOSS WHATSOEVER WHICH IS CAUSED (A)
     AS A RESULT OF ANY PROBLEM, DEFECT, MALFUNCTION OR THE FAILURE OF THE
     PERFORMANCE OF ANY SECURITY MEASURE OR (B) BY ANY PERSON ENGAGING IN
     CRIMINAL ACTIVITY.

56.  INTENTIONALLY DELETED

57.  RELOCATION OF THE LEASED PREMISES.

     (a)  At any time during the Lease Term or any renewal or extension thereof,
          Landlord may relocate the Leased Premises within the Building by
          giving Tenant at least 30 days' prior notice, subject to the
          following:

          (1)  the premises being substituted for the Leased Premises (the
               SUBSTITUTE SPACE) may not be lower in the Building than Floor 14,
               must be in the same elevator bank as the Leased Premises, and
               must contain approximately the same number of Rentable Square
               Feet as the original Leased Premises; and

          (2)  Landlord shall reimburse Tenant for Tenant's actual out-of-pocket
               expenses for moving Tenant's furniture, equipment, supplies,
               telephones, and telephone equipment from the original Leased
               Premises to the Substitute Space within 30 days after receipt of
               a certified, itemized statement of those costs, together with
               paid invoices therefor.

                                                                         PAGE 44
<PAGE>   49

     (b)  Tenant may, at its option, elect either to accept possession of the
          Substitute Space in its "AS IS" condition on the effective date of the
          relocation or to require Landlord to remodel the Substitute Space in
          the same manner as the original Leased Premises were remodeled under
          the terms of EXHIBIT F. Tenant may exercise this option by giving
          notice to Landlord within 10 days after the date of the relocation
          notice from Landlord. If Landlord does not receive notice of Tenant's
          exercise of this option within the 10-day period, Tenant is deemed to
          elect to require remodeling in accordance with EXHIBIT F.

     (c)  The Substitute Space is substituted for the original Leased Premises
          and becomes the Leased Premises on the Relocation Effective Date
          (defined below) on the same terms as under this Lease, except that if
          the Substitute Space contains more Rentable Square Feet than the
          original Leased Premises, the Minimum Rent, Tenant's Electricity
          Percentage, and Tenant's Excess Operating Costs Percentage increase
          proportionately; provided, the Minimum Rent increase is limited to a
          maximum increase of 5% even if the Substitute Space is more than 5%
          larger than the original Leased Premises.

     (d)  The RELOCATION EFFECTIVE DATE is:

          (1)  the date specified in Landlord's relocation notice (which date
               may not be less than 90 days after the date, of the notice) if
               Tenant elects to take the Substitute Space as-is; or

          (2)  the date, Landlord substantially completes the remodeling of the
               Substitute Space, subject to the Tenant delay provisions of
               EXHIBIT F, if Tenant exercises or is deemed to exercise its
               option to cause Landlord to remodel the Substitute Space.

     (e)  Tenant shall move from the original Leased Premises into the
          Substitute Space and surrender possession of the original Leased
          Premises to Landlord no later than the Relocation Effective Date. If
          Tenant continues to occupy the original Leased Premises after the
          Relocation Effective Date, then, Tenant shall:

          (1)  pay Rent for both the original Leased Premises and the Substitute
               Space until Tenant surrenders the original Leased Premises to
               Landlord; and

          (2)  pay to Landlord on demand as additional Rent any damages that
               Landlord incurs as a result of Tenant's failure to timely
               surrender the original Leased Premises, including, but not
               limited, to attorneys' fees and court costs incurred by Landlord
               in enforcing Landlord's rights under this Paragraph, together
               with interest at the Interest Rate from the date of demand until
               repaid by Tenant.

                                                                         PAGE 45
<PAGE>   50

58.  LIMITATION OF ACTIONS.

     Any claim, demand, right, or defense of Tenant arising out of this Lease is
     barred unless Tenant commences an action or asserts an affirmative defense
     within 2 years after the date of the event giving rise to Tenant's claim,
     demand, right, or defense. Tenant represents and warrants to Landlord that
     Tenant has consulted with legal counsel regarding the effect of this
     Paragraph.

59.  EXECUTION AND APPROVAL OF LEASE.

     Employees and agents of Landlord and of Landlord's Broker have no authority
     to make or agree to make a lease or any other agreement or undertaking in
     connection herewith. The submission of this Lease for examination and
     negotiation is not an offer to lease, agreement to reserve, or option to
     lease the Leased Premises. This Lease is effective and binding on Landlord
     only upon the execution and delivery of this Lease by Landlord and Tenant.
     If Landlord's first mortgagee requires any modifications of the terms of
     this Lease as a condition to approving this Lease, other than a
     modification of the Minimum Rent, Tenant shall execute and deliver any
     required modifications within 10 days after receipt of Landlord's demand.

60.  RIGHT OF FIRST NOTICE.

     (a)  If during the Lease Term space on floor 15 of the Building (the FIRST
          NOTICE SPACE) is available for lease and Landlord receives an
          expression of interest in the First Notice Space from a prospective
          tenant, Landlord shall deliver a notice to Tenant offering to lease
          the First Notice Space to Tenant. Landlord's notice must specify the
          First Notice Rate (defined below). The term AVAILABLE FOR LEASE means
          that the First Notice Space is not then subject to any existing rights
          of third parties, including, without limitation, rights of first
          notice, expansion rights, extension rights, options to lease, or other
          rights.

     (b)  Tenant may elect to lease the First Notice Space by delivering a
          notice (the RESPONSE NOTICE) to Landlord within 5 days after the date
          of Landlord's notice specifying that Tenant elects either (1) to lease
          all, but not less than all, of the applicable First Notice Space
          offered or (2) to decline to lease the applicable First Notice Space
          offered.

     (c)  If (1) Landlord does not receive the Response Notice within the 5-day
          period or (2) in the Response Notice Tenant does not elect to lease
          all of the applicable First Notice Space offered, Tenant is deemed to
          waive its right to lease the First Notice Space and Tenant has no
          further rights under this Paragraph, but Tenant shall have a
          continuing right of first notice with respect to the First Notice
          Space subsequently offered on terms materially different from those
          contained in Landlord's notice or if

                                                                         PAGE 46
<PAGE>   51

          Landlord does not enter into a binding commitment with the prospective
          tenant within 120 days after delivery of Landlord's notice to Tenant.

     (d)  If Tenant timely delivers a Response Notice electing to lease all of
          the applicable First Notice Space offered, Tenant's lease of the
          applicable First Notice Space commences on the earlier of the date
          that Tenant occupies such First Notice Space or the date 60 days after
          Landlord's receipt of the Response Notice and is on the same terms as
          this Lease except that the Rent and other applicable terms for the
          First Notice Space adjust based on the First Notice Rate. Landlord
          shall prepare and deliver to Tenant an amendment to the Lease adding
          the First Notice Space to the Leased Premises upon the terms specified
          in this Paragraph, Tenant shall execute, and deliver the amendment to
          Landlord within 10 days after Tenant's receipt of the amendment, and
          Landlord will deliver to Tenant a counterpart of the amendment
          executed by Landlord.

     (e)  Landlord is not obligated to offer the First Notice Space to Tenant,
          and Tenant may not exercise its option to lease the First Notice
          Space, if at the time Landlord would otherwise be obligated to give
          the Notice to Tenant, Tenant is in default under this Lease.

     (f)  The term FIRST NOTICE RATE means the Market Rate, as defined in
          Paragraph 61, as determined by Landlord in its sole discretion,
          provided the Rent components of the First Notice Rate will not be less
          than the Rent then being paid under this Lease.

     (g)  Tenant may not assign this option to lease the First Notice Space to
          any assignee of the Lease, nor may any sublessee or assignee exercise
          this option.

61.  OPTION TO EXTEND LEASE TERM.

     (a)  If Tenant is not in default under this Lease at the time of the
          exercise of this option or at the commencement of the extended Lease
          Term, Tenant may extend the initial Lease Term for 2 extension terms
          of 5 years each commencing on the next day after the initial
          Expiration Date as to the first renewal term and on the next day after
          the expiration of the first renewal term as to the second renewal term
          by giving Landlord an extension notice at least 12 months, but not
          more than 15 months, prior to the (i) initial Expiration Date as to
          the first renewal option, and (ii) the expiration of the first renewal
          term as to the second renewal option. If Tenant timely gives a valid
          extension notice, the Lease Term is extended for 5 years upon the same
          terms as in the Lease, except that the Rent and other applicable terms
          adjust based on the Market Rate (defined below) and Tenant has no
          further option to extend the Lease Term after these option's are
          exercised.

                                                                         PAGE 47
<PAGE>   52

     (b)  Within 30 days after Landlord receives Tenant's extension notice,
          Landlord shall deliver a notice to Tenant specifying the Market Rate.
          If Tenant does not approve Landlord's designation of Market Rate, then
          Tenant, as its sole remedy, may revoke its exercise notice by
          delivering a revocation notice to Landlord within 30 days after
          Tenant's receipt of Landlord's notice specifying the Market Rate, but
          otherwise Tenant may not revoke its extension notice. If Tenant gives
          a revocation notice, the Lease Term ends on the initial Expiration
          Date as to the first renewal option or the expiration of the first
          renewal term as to the second renewal option and Tenant has no further
          rights under this Paragraph.

     (c)  The term MARKET RATE means the Minimum Rent that Landlord quotes for
          space similar to the Leased Premises for a 5-year term commencing on
          the same date as the extension term, as determined by Landlord in its
          sole discretion; provided, the Rent components of the Market Rate will
          not be less than the Rent being paid under this Lease at the end of
          the Lease Term.

     (d)  Tenant may not assign this extension option to any assignee of the
          Lease, nor may any sublessee or assignee exercise this extension
          option.

     (e)  If the Lease Term is extended under this Paragraph, Landlord shall
          prepare, and Landlord and Tenant will execute and deliver an amendment
          to the Lease extending the Lease Term within 30 days after Tenant's
          election to renew the Lease Term.

     This Lease is executed in multiple originals as of the date first above set
     forth.

                                                                         PAGE 48
<PAGE>   53

                                        LANDLORD:

                                        F/P/D Master Lease, Inc., a Texas
                                        corporation

                                        By:    /s/ JOHN B. DETWILER
                                           -------------------------------------
                                        Name:  John B. Detwiler
                                             -----------------------------------
                                        Title: Asst Vice President
                                              ----------------------------------

                                        TENANT:

                                        Service Asset Management Company
                                        a North Carolina corporation

                                        By:    /s/ ROGER J. [ILLEGIBLE]
                                           -------------------------------------
                                        Name:  Roger J. [ILLEGIBLE]
                                             -----------------------------------
                                        Title: President
                                              ----------------------------------

<PAGE>   54

                                    EXHIBIT A

                         to Office Lease by and between

                     F/P/D Master Lease, Inc., as Landlord,

                                       and

                   Service Asset Management Company, as Tenant

                        FLOOR PLAN OF THE LEASED PREMISES

                                       A-l
<PAGE>   55

                            [FOURTEENTH FLOOR PLAN]

<PAGE>   56

                             [FIFTEENTH FLOOR PLAN]

<PAGE>   57
                                                                       EXHIBIT B

                         to Office Lease by and between

                      F/P/D Master Lease, Inc., as Landlord

                                       and

                   Service Asset Management Company, as Tenant

                                    THE LAND

<PAGE>   58

PARCEL 1 (The Project Fee Tract)

         Being all of that certain lot, tract or parcel of land, a part of which
being situated in the Live Oak Office Building Addition in the City of Dallas,
according to the Map thereof recorded in Volume 81122, Page 1117, of the Deed
Records of Dallas County, Texas, and in Lot 1, Block A/475 (Official City
Numbers) of the City of Dallas, and all of such land being situated in the J.
Grigsby Survey, Abstract No. 495, in the City of Dallas, Dallas County, Texas,
and being more particularly described as follows:

         BEGINNING at a point for corner being the present intersection of the
Northerly right-of-way line of Elm Street (an 80-foot public right-of-way)
with the Westerly right-of-way line of North St. Paul Street (a 60-foot public
right-of-way);

         THENCE South 14(degrees) 00' 00" East, a distance of 14.50 feet to a
point for corner;

         THENCE South 76(degrees) 00' 00" West, a distance of 394.56 feet to a
point for corner, said point being in the Easterly right-of-way line of Ervay
Street (a 50-foot public right-of-way);

         THENCE North 14(degrees) 00' 00" West, along the Easterly right-of-way
line of Ervay Street, a distance of 230.50 feet to a point for corner;

         THENCE North 76(degrees) 00' 00" East, a distance of 394.56 feet to a
point for corner, said point being in the Westerly right-of-way line of North
St. Paul Street;

         THENCE South 14(degrees) 00' 00" East, along the Westerly right-of-way
line of North St. Paul Street, a distance of 24.00 feet to a point for corner;

         THENCE North 76(degrees) 00' 00" East, a distance of 6.85 feet to a
point for corner;

         THENCE South 14(degrees) 00' 00" East, a distance of 192.00 feet to a
point for corner;

         THENCE South 76(degrees) 00' 00" West, a distance of 6.85 feet to the
intersection of the Northerly right-of-way line of Elm Street with the Westerly
right-of-way line of North St. Paul Street, being the POINT OF BEGINNING, and
containing 92,261.38 square feet or 2.1180 acres of land.

6/23/95                     Exhibit B - Page 1 of 43

<PAGE>   59

SAVE AND EXCEPT the following described Tracts A through G:

TRACT A (The Easterwood Leasehold Tract plus the Open Areas Tract, the Mezzanine
Tracts, and the Subway Tunnel Tract conveyed by Southern Methodist University)

         Being all of that certain lot, tract, or parcel of land situated in the
Live Oak Office Building Addition in the City of Dallas, according to the Map
thereof recorded in Volume 81122, Page 1117, of the Deed Records of Dallas
County, Texas, and situated in the J. Grigsby Survey, Abstract No. 495, and
being part of Lot 1, Block A/475 (Official City Numbers) of the City of Dallas,
Dallas County, Texas, and being more particularly described as follows:

         COMMENCING at a point being the present intersection of the Northerly
right-of-way line of Elm Street (an 80-foot public right-of-way) with the
Westerly right-of-way line of North St. Paul Street (a 60-foot public
right-of-way); thence South 76(degrees) 00' 00" West, along the Northerly
right-of-way line of Elm Street, a distance of 267.90 feet to the POINT OF
BEGINNING;

         THENCE South 76(degrees) 00' 00" West, a distance of 50.00 feet along
the Northerly right-of-way line of Elm Street to a point for corner;

         THENCE North 14(degrees) 00' 00" West, a distance of 47.53 feet to a
point for corner;

         THENCE North 45(degrees) 33' 42" East, a distance of 57.99 feet to a
point for corner;

         THENCE South 14(degrees) 00' 00" East, a distance of 76.91 feet to a
point in the Northerly right-of-way line of Elm Street, being the POINT OF
BEGINNING, and containing 3,110.90 square feet or 0.0714 acre of land.

TRACT B (The Open Areas Tract)

         Being the surface estate only in and to the tract or parcel of land
more particularly described below, such "surface" being all portions of such
land above the depth which is the lesser of (a) four feet (4') below the actual
surface as it presently exists on the date hereof, or (b) the uppermost surfaces
of the underground improvements as constructed therein by First City Center
Associates, which surface estate was reserved by the City of Dallas in those
certain deeds to C F Pacific, Inc. recorded in Volume 81105, Page 2790; Volume
81105, Page 2809; and Volume 81105, Page 2799, of the Deed Records of Dallas
County, Texas, as such deeds, have been corrected by that certain Master
Corrective

                            Exhibit B - Page 2 of 43
<PAGE>   60

Deed from the City of Dallas to C F Pacific, Inc., dated June 1, 1984, and
recorded on June 14, 1984, in Volume 84118, Page 5300 of the Deed Records of
Dallas County, Texas, and as such surface estate was conveyed by First City
Center Associates to the City of Dallas by that certain Deed (the "FCCA Open
Areas Deed"), dated June 1, 1984, and recorded on June 14, 1984, in Volume
84118, Page 5325 of the Deed Records of Dallas County, Texas, subject, however,
to the easements in favor of 1700 Pacific Associates Limited Partnership, its
successors and assigns, as the assignee of First City Center Associates pursuant
to the Special Warranty Deed and Assignment of Ground Leases dated June 21, 1984
and recorded June 21, 1984 in Volume 84124, Page 402 of the Deed Records of
Dallas County, Texas) granted and/or reserved in said deeds, as more
specifically described hereinafter as Parcel 9 (The Open Areas Easements Tract):

         Being all of that certain lot, tract, or parcel of land, a part of
which being situated in the Live Oak Office Building Addition in the City of
Dallas, according to the Map thereof recorded in Volume 81122, Page 1117 of the
Deed Records of Dallas County, Texas, and in Lot 1, Block A/475 (Official City
Numbers) of the City of Dallas, Texas, and parts of which being situated in the
rights-of-way of Pacific Avenue and Elm Street adjacent to said Lot 1, Block
A/475, and all of such land being situated in the J. Grigsby Survey, Abstract
No. 495, of the City of Dallas, Dallas County, Texas, and being more
particularly described as follows:

         BEGINNING at a point for corner being the present intersection of the
Northerly right-of-way line of Elm Street (an 80-foot public right-of-way) with
the Westerly right-of-way line of North St. Paul Street (a 60-foot public
right-of-way);

         THENCE South 14(degrees) 00' 00" East, along the Westerly right-of-way
line of North St. Paul Street, a distance of 14.50 feet to a point for corner;

         THENCE South 76(degrees) 00' 00" West, a distance of 394.56 feet to a
point for corner, said point being in the Easterly right-of-way line of Ervay
Street (a 50-foot public right-of-way);

         THENCE North 14(degrees) 00' 00" West, along the Easterly right-of-way
line of Ervay Street, a distance of 230.50 feet to a point for corner;

         THENCE North 76(degrees) 00' 00" East, a distance of 394.56 feet to a
point for corner, said point being in the Westerly right-of-way line of North
St. Paul Street;

                            Exhibit B - Page 3 of 43
<PAGE>   61

         THENCE South 14(degrees) 00' 00" East, along the Westerly right-of-way
line of North St. Paul Street, a distance of 16.00 feet to a point for corner,
said point being the present intersection of the westerly right-of-way line of
North St. Paul Street with the Southerly right-of-way line of Pacific Avenue (an
80-foot public right-of-way);

         THENCE South 76(degrees) 00' 00" West, along the Southerly right-of-way
line of Pacific Avenue, a distance of 17.10 feet to a point for corner;

         THENCE South 45(degrees) 47' 33" West, a distance of 43.20 feet to a
point for corner;

         THENCE North 44(degrees) 15' 22" West, a distance of 6.62 feet to a
point for corner;

         THENCE South 45(degrees) 44' 38" West, a distance of 21.80 feet to a
point for corner;

         THENCE North 44(degrees) 15' 22" West, a distance of 30.20 feet to a
point for corner;

         THENCE South 45(degrees) 44' 38" West, a distance of 66.80 feet to a
point for corner;

         THENCE North 44(degrees) 15' 22" West, a distance of 30.00 feet to a
point for corner;

         THENCE South 45(degrees) 44' 38" West, a distance of 125.80 feet to a
point for corner;

         THENCE South 44(degrees) 15' 22" East, a distance of 30.00 feet to a
point for corner;

         THENCE South 45(degrees) 44' 38" West, a distance of 67.00 feet to a
point for corner;

         THENCE South 44(degrees) 15' 22" East, a distance of 16.95 feet to a
point for corner, said point being in the Northerly boundary line of the
above-described Tract A - The Easterwood Leasehold Tract;

         THENCE South 45(degrees) 33' 42" West, along the Northerly boundary
line of the above-described Tract A - The Easterwood Leasehold Tract, a distance
of 11.94 feet to a point for corner, said point being the Northwest corner of
the said Tract A - The Easterwood Leasehold Tract;

                            Exhibit B - Page 4 of 43
<PAGE>   62
         THENCE South 14(degrees) 00' 00" East, along the Westerly boundary line
of the above-described Tract A - The Easterwood Leasehold Tract, a distance of
47.53 feet to a point for corner, said point being in the Northerly right-of-way
line of Elm Street;

         THENCE North 76(degrees) 00' 00" East, along the Northerly right-of-way
line of Elm Street, a distance of 317.90 feet to the POINT OF BEGINNING, and
containing 39,913.49 square feet or 0.9163 acres of land.

TRACT C (The North St. Paul Street Sidewalk Tract)

         Being the surface estate only in and to the tract or parcel of land
more particularly described below, such "surface" being all portions of such
land above the depth which is the lesser of (a) four feet (4') below the actual
surface as it presently exists, on the date hereof, or (b) the uppermost
surfaces of the underground improvements as constructed therein by First City
Center Associates, which surface estate was reserved by the City of Dallas in
that certain deed to C F Pacific, Inc., recorded in Volume 81105, Page 2799, of
the Deed Records of Dallas County, Texas, as such deed has been corrected by
that certain Master Corrective Deed from the City of Dallas to C F Pacific,
Inc., dated June 1, 1984, and recorded on June 14, 1984, in Volume 84118, Page
5300 of the Deed Records of Dallas County, Texas, and as such surface estate was
conveyed by First City Center Associates to the City of Dallas by that certain
Deed (the "FCCA Open Areas Deed"), dated June 1, 1984, and recorded on June 14,
1984, in Volume 84118, Page 5325 of the Deed Records of Dallas County, Texas,
subject, however, to the easements in favor of 1700 Pacific Associates Limited
Partnership, its successors and assigns, as the assignee of First City Center
Associates pursuant to the Special Warranty Deed and Assignment of Ground Leases
dated June 21, 1984 and recorded June 21, 1984 in Volume 84124, Page 402 of the
Deed Records of Dallas County, Texas) granted and/or reserved in said deeds, as
more specifically described hereinafter as Parcel 9 (The Open Areas Easements
Tract):

         Being all of that certain lot, tract, or parcel of land, being situated
in the J. Grigsby Survey, Abstract No. 495, Dallas County, Texas, and being a
part of North St. Paul Street (a 60-foot public right-of-way) adjacent to Lot 1,
Block A/475 (Official City Numbers) of the City of Dallas, Dallas County, Texas,
and being more particularly described as follows:

         BEGINNING at a point for corner being the present intersection of the
Northerly right-of-way line of Elm Street (an 80-foot public right-of-way) with
the Westerly right-of-way line of North St. Paul Street (a 60-foot public
right-of-way);

                            Exhibit B - Page 5 of 43

<PAGE>   63
         THENCE North 14(degrees) 00' 00" West, along the Westerly right-of-way
line of North St. Paul Street, a distance of 192.00 feet to a point for corner;

         THENCE North 76(degrees) 00' 00" East, a distance of 6.85 feet to a
point for corner;

         THENCE South 14(degrees) 00' 00" East, along a line which is 6.85 feet
perpendicularly distant Northeast from, and parallel to, the Westerly
right-of-way line of said North St. Paul Street, a distance of 192.00 feet to a
point for corner, said point being in the Northerly right-of-way line of Elm
Street;

         THENCE South 76(degrees) 00' 00" West, along the Northerly right-of-way
line of Elm Street, a distance of 6.85 feet to the POINT OF BEGINNING, and
containing 1,315.2 square feet or 0.0302 acre of land.

TRACT D (The Mezzanine Tract - Concourse Level)

         Being a subsurface estate only, bounded on the bottom at 443.0 feet
above mean sea level ("M.S.L.") and bounded at the top at 453.0 feet above
M.S.L., in and to the following described tract or parcel of land, but excluding
from such subsurface estate all existing structural columns, primary support
beams, foundations, bearing walls, and other structural improvements constructed
therein by First City Center Associates, and the land, areas, and spaces in
which such structural improvements are located, which subsurface estate was
granted from First City Center Associates to the City of Dallas by that certain
Deed (the "FCCA Mezzanine Deed"), dated June 1, 1984, recorded on June 14, 1984,
in Volume 84118, Page 5334 of the Deed Records of Dallas County, Texas, and is
subject to the restrictions upon the City of Dallas and the reservations,
easements, and interim rights in favor of 1700 Pacific Associates Limited
Partnership, its successors and assigns, as the assignee of First City Center
Associates pursuant to the Special Warranty Deed and Assignment of Ground Leases
dated June 21, 1984 and recorded June 21, 1984 in Volume 84124, Page 402 of the
Deed Records of Dallas County, Texas) to use such subsurface estate, all as set
forth in said FCCA Mezzanine Deed, as more specifically described hereinafter as
Parcel 10 (The Mezzanine Easements Tract):

         Being part of the Live Oak Office Building Addition, an addition to the
City of Dallas, Dallas County, Texas, as shown on the Map thereof recorded in
Volume 81122, Page 1117 of the Deed Records of Dallas County, Texas, and
situated in Lot 1, Block A/475 (Official City Numbers) of the City of Dallas,
Dallas County, Texas, and being more particularly described as follows:

                            Exhibit B - Page 6 of 43
<PAGE>   64
         COMMENCING at a point being the present intersection of the Northerly
right-of-way line of Elm Street (an 80-foot public right-of-way) with the
Westerly right-of-way line of North St. Paul Street (a 60-foot public
right-of-way); thence South 76(degrees) 00' 00" West, along the Northerly
right-of-way line of said Elm Street, a distance of 276.23 feet to a point for
corner; and thence North 44(degrees) 15' 22" West, a distance of 62.09 feet to
the POINT OF BEGINNING;

         THENCE North 44(degrees) 15' 22" West, a distance of 16.96 feet to a
point for corner;

         THENCE North 45(degrees) 44' 38" East, a distance of 50.67 feet to a
point for corner;

         THENCE South 14(degrees) 00' 00" East, a distance of 19.48 feet to a
point for corner, said point being on the Northerly boundary line of the
above-described Tract A - The Easterwood Leasehold Tract;

         THENCE South 45(degrees) 33' 42" West, along the Northerly boundary
line of the said Tract A - The Easterwood Leasehold Tract, a distance of 40.85
feet to the POINT OF BEGINNING, and containing 772.82 square feet or 0.0177 acre
of land.

TRACT E (The Mezzanine Tract - Garage Level 1)

         Being a subsurface estate only, bounded on the bottom at 433.0 feet
above M.S.L. and bounded at the top at 443.0 feet above M.S.L., in and to
the following described tract or parcel of land, but excluding from such
subsurface estate all existing structural columns, primary support beams,
foundations, bearing walls, and other structural improvements constructed
therein by First City Center Associates, and the land, areas, and spaces in
which such structural improvements are located, which subsurface estate was
granted from First City Center Associates to the City of Dallas by that certain
deed (the "FCCA Mezzanine Deed"), dated June 1, 1984, and recorded on June 14,
1984, in Volume 84118, Page 5334 of the Deed Records of Dallas County, Texas,
and is subject to the restrictions upon the City of Dallas and the
reservations, easements, and interim rights in favor of 1700 Pacific Associates
Limited Partnership, its successors and assigns, as the assignee of First City
Center Associates pursuant to the Special Warranty Deed and Assignment of Ground
Leases dated June 21, 1984 and recorded June 21, 1984 in Volume 84124, Page 402
of the Deed Records of Dallas County, Texas) to use such subsurface estate, all
as set-forth in said FCCA Mezzanine Deed, as more specifically described
hereinafter as Parcel 10 (The Mezzanine Easements Tract):

                            Exhibit B - Page 7 of 43
<PAGE>   65

         Being all of that certain tract or parcel of land, a part of which
being situated in the Live Oak Office Building Addition, an addition to the City
of Dallas, Dallas County, Texas, as shown on the Map thereof recorded in Volume
81122, Page 1117, of the Deed Records of Dallas County, Texas, and in Lot 1,
Block A/475 (Official City Numbers) of the City of Dallas, Dallas County, Texas,
and a part of which being situated in the subsurface of the right-of-way of Elm
Street adjacent to said Lot 1, Block A/475, and being more particularly
described as follows:

         COMMENCING at a point being the present intersection of the Southerly
right-of-way line of Pacific Avenue (an 80-foot public right-of-way) with the
Easterly right-of-way line of Ervay Street (a 50-foot public right-of-way);
thence South 14(degrees) 00' 00" East, along the Easterly right-of-way line of
said Ervay Street, a distance of 107.97 feet to the POINT OF BEGINNING;

         THENCE North 76(degrees) 00' 00" East, a distance of 16.00 feet to a
point for corner;

         THENCE South 44(degrees) 15' 22" East, a distance of 68.00 feet to a
point for corner;

         THENCE North 45(degrees) 44' 38" East, a distance of 25.00 feet to a
point for corner;

         THENCE North 44(degrees) 15' 22" West, a distance of 16.00 feet to a
point for corner;

         THENCE North 45(degrees) 44' 38" East, a distance of 39.00 feet to a
point for corner;

         THENCE South 44(degrees) 15' 22" East, a distance of 16.89 feet to a
point for corner, said point being on the Northerly boundary line of the above
described Tract A - The Easterwood Leasehold Tract;

         THENCE South 45(degrees) 33' 42 West, along the Northerly boundary line
of the said Tract A - The Easterwood Leasehold Tract, a distance of 34.03 feet
to a point for corner, said point being the Northwest corner of the said Tract A
- The Easterwood Leasehold Tract;

         THENCE South 14(degrees) 00' 00" East, along the Westerly boundary line
of the said Tract A - The Easterwood Leasehold Tract, a distance of 21.99 feet
to a point for corner;

         THENCE South 45(degrees) 44' 38" West, a distance of 68.89 feet to a
point for corner;

                            Exhibit B - Page 8 of 43
<PAGE>   66
         THENCE North 14(degrees) 00' 00" West, a distance of 9.17 feet to a
point for corner;

         THENCE South 76(degrees) 00' 00" West, a distance of 17.18 feet to a
point for corner, said point being in the Easterly right-of-way line of Ervay
Street;

         THENCE North 14(degrees) 00' 00" West, along the Easterly right-of-way
line of Ervay Street, a distance of 92.00 feet to the POINT OF BEGINNING, and
containing 4,873.01 square feet or 0.1119 acre of land.

TRACT F - (The Mezzanine Tract - Garage Level 2)

         Being a subsurface estate only, bounded on the bottom at a variable
elevation above M.S.L., ranging from 421.5 feet above M.S.L. to 425.0 feet above
M.S.L., which bottom boundary is (a) the uppermost boundary of the below
described Tract G - The Subway Tunnel Tract, with respect to all portions of
the below described Mezzanine Tract - Garage Level 2 which are directly above
the said Subway Tunnel Tract, and (b) 425.0 feet above M.S.L., with respect to
all other portions of the below-described Mezzanine Tract - Garage Level 2, and
bounded on the top at 433.0 feet above M.S.L., in and to the following described
tract or parcel of land, but excluding from such subsurface estate all existing
structural columns, primary support beams, foundations, bearing walls, and other
structural improvements constructed therein by First City Center Associates, and
the land, areas, and spaces in which such structural improvements are located,
which subsurface estate was granted from First City Center Associates to the
City of Dallas by that certain deed (the "FCCA Mezzanine Deed"), dated June 1,
1984, and recorded on June 14, 1984, in Volume 84118, Page 5334 of the Deed
Records of Dallas County, Texas, and is subject to the restrictions upon the
City of Dallas and the reservations, easements, and interim rights in favor of
1700 Pacific Associates Limited Partnership, its successors and assigns, as the
assignee of First City Center Associates pursuant to the Special Warranty Deed
and Assignment of Ground Leases dated June 21, 1984 and recorded June 21, 1984
in Volume 84124, Page 402 of the Deed Records of Dallas County, Texas) to use
such subsurface estate, all as set forth in said FCCA Mezzanine Deed, as more
specifically described hereinafter as Parcel 10 (the Mezzanine Easements Tract):

         Being all of that certain tract or parcel of land, a part of which
being situated in the Live Oak Office Building Addition, an addition to the City
of Dallas, Dallas County, Texas, as shown on the Map thereof recorded in Volume
81122, Page 1117, of the Deed Records of Dallas County, Texas, and in Lot 1,
Block A/475 (Official City Numbers) of the City of Dallas, Dallas County,

                            Exhibit B - Page 9 of 43
<PAGE>   67

Texas, and a part of which being situated in the subsurface of the
right-of-way of Elm Street adjacent to said Lot 1, Block A/475, and being more
particularly described as follows:

         COMMENCING at a point being the present intersection of the Southerly
right-of-way line of Pacific Avenue (an 80-foot public right-of-way) with the
Easterly right-of-way line of Ervay Street (a 50-foot public right-of-way);
thence South 14(degrees) 00' 00" East, along the Easterly right-of-way line of
said Ervay Street, a distance of 125.42 feet to the POINT OF BEGINNING;

         THENCE North 45(degrees) 44' 38" East, a distance of 22.14 feet to a
point for corner;

         THENCE South 44(degrees) 15' 22" East, a distance of 56.00 feet to a
point for corner;

         THENCE North 45(degrees) 44' 38" East, a distance of 14.83 feet to a
point for corner;

         THENCE South 44(degrees) 15' 22" East, a distance of 2.00 feet to a
point for corner;

         THENCE North 45(degrees) 44' 38" East, a distance of 9.67 feet to a
point for corner;

         THENCE North 44(degrees) 15' 22" West, a distance of 22.00 feet to a
point for corner;

         THENCE North 45(degrees) 44' 38" East, a distance of 40.00 feet to a
point for corner;

         THENCE South 44(degrees) 15' 22" East, a distance of 7.00 feet to a
point for corner;

         THENCE South 45(degrees) 44' 38" West, a distance of 23.00 feet to a
point for corner;

         THENCE South 44(degrees) 15' 22" East, a distance of 2.00 feet to a
point for corner;

         THENCE North 45(degrees) 44' 38" East, a distance of 23.00 feet to a
point for corner;

         THENCE South 44(degrees) 15' 22" East, a distance of 16.88 feet to a
point for corner, said point being on the Northerly boundary line of the above
described Tract A - The Easterwood Leasehold Tract;

                            Exhibit B - Page 10 of 43
<PAGE>   68
         THENCE South 45(degrees) 33' 42" West, along the Northerly boundary
line of said Tract A - The Easterwood Leasehold Tract, a distance of 34.05 feet
to a point for corner, said point being the Northwest corner of the said Tract A
- The Easterwood Leasehold Tract;

         THENCE South 14(degrees) 00' 00" East, along the Westerly boundary line
of the said Tract A - The Easterwood Leasehold Tract, a distance of 22.01 feet
to a point for corner;

         THENCE South 45(degrees) 44' 38" West, a distance of 68.86 feet to a
point for corner;

         THENCE North 14(degrees) 00' 00" West, a distance of 9.17 feet to a
point for corner;

         THENCE South 76(degrees) 00' 00" West, a distance of 17.18 feet to a
point for corner, said point being in the Easterly right-of-way line of Ervay
Street;

         THENCE North 14(degrees) 00' 00" West, along the Easterly right-of-way
line of Ervay Street, a distance of 74.58 feet to the POINT OF BEGINNING, and
containing 5,055.60 square feet or 0.1160 acre of land.

TRACT G (The Subway Tunnel Tract)

         Being a subsurface estate only, bounded on the bottom at 397.0 feet
above M.S.L. and bounded at the top at a variable elevation above M.S.L.,
ranging from 416.5 feet above M.S.L. to 421.5 feet above M.S.L., which top
boundary is three feet (3') below the lowermost surface of those two certain
concrete structural slabs heretofore constructed above such subsurface estate by
First City Center Associates at approximately 425.0 and 420.0 feet above M.S.L.,
in and to the following described tract or parcel of land, but excluding from
such subsurface estate all existing footings, caissons, columns, structural
beams and other supports, structural slabs, and other improvements constructed
therein by First City Center Associates, and the land, areas, and spaces in
which such improvements are located, which subsurface estate as granted from
First City Center Associates to the City of Dallas by that certain deed (the
"FCCA Subway Tunnel Deed") dated June 1, 1984, and recorded on June 14, 1984, in
Volume 84118, Page 5344 of the Deed Records of Dallas County, Texas, and is
subject to the restrictions upon the City of Dallas and the reservations,
easements, and rights of access in favor of 1700 Pacific Associates Limited
Partnership, its successors and assigns, as the assignee of First City Center
Associates pursuant to the Special Warranty Deed and Assignment of Ground Leases
dated June 21, 1984 and recorded June 21, 1984 in Volume 84124,

                            Exhibit B - Page 11 of 43
<PAGE>   69

Page 402 of the Deed Records of Dallas County, Texas), all as set forth in said
FCCA Subway Tunnel Deed, as more specifically described hereinafter as Parcel 11
(the Subway Tunnel Easements Tract):

         Being all of that certain lot, tract, or parcel of land, a part of
which being situated in the Live Oak Office Building Addition, an addition to
the City of Dallas, as shown on the Map thereof recorded in Volume 81122, Page
1117, of the Deed Records of Dallas County, Texas, and in Lot 1, Block A/475
(Official City Numbers) of the City of Dallas, Dallas County, Texas, and parts
of which being situated in the subsurface of the rights-of-way of Pacific
Avenue and Elm Street adjacent to said Lot 1, Block A/475, and being more
particularly described as follows:

         COMMENCING at a point being the present intersection of the Southerly
right-of-way line of Pacific Avenue (an 80-foot public right-of-way) with the
Westerly right-of-way line of North St. Paul Street (a 60-foot public
right-of-way); thence South 76(degrees) 00' 00" West, along the Southerly
right-of-way line of Pacific Avenue, a distance of 31.45 feet to the POINT OF
BEGINNING;

         THENCE South 45(degrees) 44' 42" West, a distance of 278.39 feet to a
point for corner, said point being in the Easterly boundary line of the
above-described Tract A - The Easterwood Leasehold Tract;

         THENCE North 14(degrees) 00' 00" West, along the said Easterly boundary
line of the said Tract A - The Easterwood Leasehold Tract, a distance of 15.38
feet to a point for corner, said point being the Northeast corner of the said
Tract A - The Easterwood Leasehold Tract;

         THENCE South 45(degrees) 33' 42" West, along the Northerly boundary
line of the said Tract A - The Easterwood Leasehold Tract, a distance of 57.99
feet to a point for corner, said point being the Northwest corner of the said
Tract A - The Easterwood Leasehold Tract;

         THENCE South 14(degrees) 00' 00" East, along the Westerly boundary line
of the said Tract A - The Easterwood Leasehold Tract, a distance of 15.16 feet
to a point for corner;

         THENCE South 45(degrees) 44' 42" West, a distance of 84.10 feet to a
point for corner, said point being in the Easterly right-of-way line of Ervay
Street (a 50-foot public right-of-way);

         THENCE North 14(degrees) 00' 00" West, along the Easterly right-of-way
line of said Ervay Street, a distance of 69.50 feet to a point for corner;

                            Exhibit B - Page 12 of 43
<PAGE>   70
         THENCE North 45(degrees) 44' 42" East, a distance of 314.26 feet to a
point for corner, said point being on a line which is 16.0 feet distant
Northwest of, and parallel with, the Southerly right-of-way line of Pacific
Avenue;

         THENCE North 76(degrees) 00' 00" East, along a line which is 16.0 feet
distant Northwest of, and parallel with, the Southerly right-of-way line of
Pacific Avenue, a distance of 119.08 feet to a point for corner;

         THENCE South 45(degrees) 44' 42" West, a distance of 31.76 feet to a
point on the Southerly right-of-way line of Pacific Avenue, being the POINT OF
BEGINNING, and containing 22,227.67 square feet or 0.5103 acres of land.

PARCEL 2 (The Easterwood Leasehold Tract)

         All that certain leasehold estate (excepting the last day of the term
thereof unless so extended, in which event excepting only the last day of the
term as so extended) in and to the following described parcel of land, created
by that certain Ground Lease, dated as of May 1, 1980, between Eva Easterwood
(now deceased), Individually and as the Independent Executrix of the Estate of
W. E. Easterwood, and Southern Methodist University, as Lessor (the fee interest
of Eva Easterwood having been conveyed to Southern Methodist University by deed
dated May 30, 1984, and recorded in Volume 84118, Page 5311 of the Deed Records
of Dallas County, Texas), and Pacific Investments, Inc., a Texas corporation, as
Lessee, a memorandum of which is recorded in Volume 80117, Page 0197 of the Deed
Records of Dallas County, Texas, which Ground Lease has been assigned: (a) by
C F Pacific, Inc. (formerly known as Pacific Investments, Inc.), a Texas
corporation, to First City Center Associates, a Texas limited partnership, the
sole general partner of which is C F Pacific, Inc., by Assignment of Lease,
dated June 22, 1981, and recorded in Volume 81122, Page 3288, Deed Records of
Dallas County, Texas; (b) by First City Center Associates, a Texas limited
partnership, the sole general partner of which is C F Pacific, Inc., to First
City Bank of Dallas, a Texas state banking corporation, by that certain Special
Warranty Deed and Assignment of Ground Lease, dated July 1, 1982, recorded in
Volume 82131, Page 2782 of the Deed Records of Dallas County, Texas; (c) by
First City Bank of Dallas, a Texas state banking corporation, to First City
Center Associates, a Texas limited partnership, the sole general partner of
which is C F Pacific, Inc., by that certain Special Warranty Deed and Assignment
of Ground Lease, dated May 18, 1984, recorded in Volume 84106, Page 2947 of the
Deed Records of Dallas County, Texas; and (d) by First City Center Associates, a
Texas limited partnership, to 1700 Pacific Associates Limited Partnership, a
Connecticut limited partnership, by that Special Warranty Deed

                            Exhibit B - Page 13 of 43
<PAGE>   71
and Assignment of Ground Leases dated June 21, 1984 and recorded June 21, 1984
in Volume 84124, Page 402 of the Deed Records of Dallas County, Texas, and which
Ground Lease has been amended by that certain Agreement, dated March 5, 1981,
and further amended by that certain Second Amendment to Lease, dated September
21, 1983, which Second Amendment to Lease is recorded in Volume 84083, Page 3298
of the Deed Records of Dallas County, Texas, as ratified by Statement of Ground
Lessor dated September 28, 1994 from Southern Methodist University to Teachers
Insurance Annuity Association of America recorded in Volume 95120, Page 1, Deed
Records, Dallas County, Texas (the Ground Lease, as the same has been so
assigned and so amended, is herein collectively called the "Easterwood Ground
Lease"), together with all rights, titles, interests, options, and estates of
1700 Pacific Associates Limited Partnership in, to, and under such Easterwood
Ground Lease (the said Easterwood Ground Lease being for a term of fifty (50)
years commencing on May 1, 1980 and ending on April 30, 2030, with five (5)
options to renew and extend said term for additional terms of ten (10) years
each):

         Being all of that certain lot, tract, or parcel of land situated in the
Live Oak Office Building Addition, an addition to the City of Dallas, according
to the Map thereof recorded in Volume 81122, Page 1117 of the Deed Records of
Dallas County, Texas, and situated in the J. Grigsby Survey, Abstract No. 495,
and in Lot 1, Block A/475 (Official City Numbers) of the City of Dallas, Dallas
County, Texas, and being more particularly described as follows:

         COMMENCING at a point being the present intersection of the Northerly
right-of-way line of Elm Street (an 80-foot public right-of-way) with the
Westerly right-of-way line of North St. Paul Street (a 60-foot public
right-of-way); thence South 76(degrees) 00' 00" West, along the Northerly
right-of-way line of Elm Street, a distance of 267.90 feet to the POINT OF
BEGINNING;

         THENCE South 76(degrees) 00' 00" West, along the Northerly right-of-way
line of Elm Street, a distance of 50.00 feet to a point for corner;

         THENCE North 14(degrees) 00' 00" West, a distance of 47.53 feet to a
point for corner;

         THENCE North 45(degrees) 33' 42" East, a distance of 57.99 feet to a
point for corner;

         THENCE South 14(degrees) 00' 00" East, a distance of 76.91 feet to a
point on the Northerly right-of-way line of Elm Street, being the POINT OF
BEGINNING, and containing 3110.90 square feet or 0.0714 acre of land.

                            Exhibit B - Page 14 of 43
<PAGE>   72

SAVE AND EXCEPT the following described Tracts B-1, D-1, E-1, F-1, and G-l:

TRACT B-1 (The Easterwood Open Areas Tract)

         Being the surface estate only in and to the tract or parcel of land
more particularly described below, such "surface" being all portions of such
land above the depth which is the lesser of (a) four feet (4') below the actual
surface as it presently exists on the date hereof, or (b) the uppermost surfaces
of the underground improvements as constructed therein by First City Center
Associates, which surface estate was granted by Southern Methodist University to
the City of Dallas by that certain Deed (the "Easterwood Open Areas Deed"),
dated May 30, 1984, and recorded on June 14, 1984, in Volume 84118, Page 5351 of
the Deed Records of Dallas County, Texas, and is subject to the reservations and
easements in favor of 1700 Pacific Associates Limited Partnership, its
successors and assigns as the assignee of First City Center Associates pursuant
to that Special Warranty Deed and Assignment of Ground Leases dated June 21,
1984 and recorded June 21, 1984 in Volume 84124, Page 402 of the Deed Records of
Dallas County, Texas, and any successor lessee under the Easterwood Ground
Lease, as set forth in such Easterwood Open Areas Deed, as more specifically
described hereinafter as Parcel 9 (The Open Areas Easements Tract):

         Being all of that certain lot, tract, or parcel situated in the Live
Oak Office Building Addition, an addition to the City of Dallas, according to
the Map thereof recorded in Volume 81122, Page 1117 of the Deed Records of
Dallas County, Texas, and in Lot 1, Block A/475 (Official City Numbers) of the
City of Dallas, Dallas County, Texas, and being more particularly described as
follows:

         COMMENCING at a point being the present intersection of the Northerly
right-of-way line of Elm Street (an 80-foot public right-of-way) with the
Westerly right-of-way line of North St. Paul Street (a 60-foot public
right-of-way); thence South 76(degrees) 00' 00" West, along the Northerly
right-of-way line of Elm Street, a distance of 317.90 feet to a point for
corner; and thence North 14(degrees) 00' 00" West, along the Westerly boundary
line of the above described Parcel 2 - The Easterwood Leasehold Tract, a
distance of 24.88 feet to the POINT OF BEGINNING;

         THENCE North 14(degrees) 00' 00" West, continuing along the Westerly
boundary line of the said Parcel 2 - The Easterwood Leasehold Tract, a distance
of 22.65 feet to a point for corner, said point being the Northwest corner of
the said Parcel 2 - The Easterwood Leasehold Tract;

                            Exhibit B - Page 15 of 43
<PAGE>   73
         THENCE North 45(degrees) 33' 42" East, along the Northerly boundary
line of the said parcel 2 - The Easterwood Leasehold Tract, a distance of 11.94
feet to a point for corner;

         THENCE South 44(degrees) 15' 22" East, a distance of 19.62 feet to a
point for corner;

         THENCE South 45(degrees) 47' 33" West, a distance of 23.46 feet to the
POINT OF BEGINNING, and containing 346.20 square feet of land.

TRACT D-l (The Mezzanine Tract - Concourse Level)

         Being a subsurface estate only, bounded on the bottom at 443.0 feet
above M.S.L. and bounded at the top at 453.0 feet above M.S.L., in and to the
following described tract or parcel of land, but excluding from such subsurface
estate all existing structural columns, primary support beams, foundations,
bearing walls, and other structural improvements constructed therein by First
City Center Associates, and the land, areas, and spaces in which such structural
improvements are located, which subsurface estate was granted by Southern
Methodist University to the City of Dallas by that certain deed (the "Easterwood
Mezzanine Deed") dated May 30, 1984, and recorded on June 14, 1984, in Volume
84118, Page 5359 of the Deed Records of Dallas County, Texas, and is subject to
the restrictions upon the City of Dallas and the reservations, easements, and
interim rights in favor of 1700 Pacific Associates Limited Partnership, its
successors and assigns as the assignee of First City Center Associates pursuant
to that Special Warranty Deed and Assignment of Ground Leases dated June 21,
1984 and recorded June 21, 1984 in Volume 84124, Page 402 of the Deed Records of
Dallas County, Texas, and any successor lessee under the Easterwood Ground
Lease, to use such subsurface estate, all as set forth in said, Easterwood
Mezzanine Deed, as more specifically described hereinafter as Parcel 10 (The
Mezzanine Easements Tract):

         Being part of the Live Oak Office Building Addition, an addition to the
City of Dallas, Dallas County, Texas, as shown on the Map thereof recorded in
Volume 81122, Page 1117, of the Deed Records of Dallas County, Texas, and
situated in Lot 1, Block A/475 (Official City Numbers) of the City of Dallas,
Dallas County, Texas, and being more particularly described as follows:

         COMMENCING at a point being the present intersection of the Northerly
right-of-way line of Elm Street (an 80-foot public right-of-way) with the
Westerly right-of-way line of North St. Paul Street (a 60-foot public
right-of-way); thence South 76(degrees) 00' 00" West, along the Northerly
right-of-way line of said Elm Street, a distance of 276.23 feet to a point for
corner; and

                            Exhibit B - Page 16 of 43
<PAGE>   74

         THENCE North 44(degrees) 15' 22" West, a distance of 47.05 feet to the
POINT OF BEGINNING;

         THENCE North 44(degrees) 15' 22" West, a distance of 15.04 feet to a
point for corner, said point being on the Northerly boundary line of the
above-described Parcel 2 - The Easterwood Leasehold Tract;

         THENCE North 45(degrees) 33' 42" East, along the Northerly boundary
line of said Parcel 2 - The Easterwood Leasehold Tract, a distance of 40.85 feet
to a point for corner;

         THENCE South 14(degrees) 00' 00" East, a distance of 17.57 feet to a
point for corner;

         THENCE South 45(degrees) 44' 38" West, a distance of 32.00 feet to the
POINT OF BEGINNING, and containing 549.84 square feet or 0.0127 acre of land.

TRACT E-l (The Mezzanine Tract - Garage Level 1)

         Being a subsurface estate only, bounded on the bottom at 433.0 feet
above M.S.L. and bounded at the top at 443.0 feet above M.S.L., in and to the
following described tract or parcel of land, but excluding from such subsurface
estate all existing structural columns, primary support beams, foundations,
bearing walls, and other structural improvements constructed therein by First
City Center Associates, and the land, areas, and spaces in which such structural
improvements are located, which subsurface estate was granted by Southern
Methodist University to the City of Dallas by that certain deed (the "Easterwood
Mezzanine Deed" dated May 30, 1984, and recorded on June 14, 1984, in Volume
84118, Page 5359 of the Deed Records of Dallas County, Texas, and is subject to
the restrictions upon the City of Dallas and the reservations, easements, and
interim rights in favor of 1700 Pacific Associates Limited Partnership, its
successors and assigns as the assignee of First City Center Associates pursuant
to that Special Warranty Deed and Assignment of Ground Leases dated June 21,
1984 and recorded June 21, 1984 in Volume 84124, Page 402 of the Deed Records of
Dallas County, Texas, and any successor lessee under the Easterwood Ground
Lease, to use such subsurface estate, all as set forth in said Easterwood
Mezzanine Deed, as more specifically described hereinafter as Parcel 10 (The
Mezzanine Easements Tract):

         Being part of the Live Oak Office Building Addition, an addition to the
City of Dallas, Dallas County, Texas, as shown on the Map thereof recorded in
Volume 81122, Page 1117, of the Deed Records of Dallas County, Texas, and
situated in Lot 1, Block A/475 (Official City Numbers) of the City of Dallas,
Dallas County, Texas, and being more particularly described as follows:

                            Exhibit B - Page 17 of 43
<PAGE>   75
         COMMENCING at a point being the present intersection of the Northerly
right-of-way line of Elm Street (an 80-foot public right-of-way) with the
Westerly right-of-way line of North St. Paul Street (a 60-foot public
right-of-way); thence South 76(degrees) 00' 00" West, along the Northerly
right-of-way line of said Elm Street, a distance of 317.90 feet to a point for
corner; and thence North 14(degrees) 00' 00" West, along the Westerly boundary
line of the above described Parcel 2 - The Easterwood Leasehold Tract, a
distance of 25.54 feet to the POINT OF BEGINNING;

         THENCE North 14(degrees) 00' 00" West, continuing along the Westerly
boundary line of the said Parcel 2 - The Easterwood Leasehold Tract, a distance
of 21.99 feet to a point for corner, said point being the Northwest corner of
the said Parcel 2 - The Easterwood Leasehold Tract;

         THENCE North 45(degrees) 33' 42" East, along the Northerly boundary
line of the said Parcel 2 - The Easterwood Leasehold Tract, a distance of 34.03
feet to a point for corner;

         THENCE South 44(degrees) 15' 22" East, a distance of 5.11 feet to a
point for corner;

         THENCE South 45(degrees) 44' 38" West, a distance of 22.00 feet to a
point for corner;

         THENCE South 44(degrees) 15' 22" East, a distance of 14.00 feet to a
point for corner;

         THENCE South 45(degrees) 44' 38" West, a distance of 23.11 feet to the
POINT OF BEGINNING, and containing 445.48 square feet or 0.0102 acre of land.

TRACT F-l (The Mezzanine Tract - Garage Level 2)

         Being a subsurface estate only, bounded on the bottom at a variable
elevation above M.S.L., ranging from 421.5 feet above M.S.L. to 425.0 feet above
M.S.L., which bottom boundary is: (a) the uppermost boundary of the below
described Tract G-l - The Subway Tunnel Tract, with respect to all portions of
the below described Tract F-l - The Mezzanine Tract - Garage Level 2 which are
directly above the said Tract G-l - The Subway Tunnel Tract, and (b) 425.0 feet
above M.S.L., with respect to all other portions of the said Tract F-l - The
Mezzanine Tract - Garage Level 2, and bounded at the top at 433.0 feet above
M.S.L., in and to the following described tract or parcel of land, but excluding
from such subsurface estate all existing structural columns, primary support
beams, foundations, bearing walls, and other structural improvements constructed
therein by First City Center Associates, and the land, areas, and spaces in
which such

                            Exhibit B - Page 18 of 43
<PAGE>   76

structural improvements are located, which subsurface estate was granted by
Southern Methodist University to the City of Dallas by that certain deed (the
"Easterwood Mezzanine Deed"), dated May 30, 1984, and recorded on June 14, 1984,
in Volume 84118, Page 5359 of the Deed Records of Dallas County, Texas, and is
subject to the restrictions upon the City of Dallas and the reservations,
easements, and interim rights in favor of 1700 Pacific Associates Limited
Partnership, its successors and assigns as the assignee of First City Center
Associates pursuant to that Special Warranty Deed and Assignment of Ground
Leases dated June 21, 1984 and recorded June 21, 1984 in Volume 84124, Page 402
of the Deed Records of Dallas County, Texas, and any successor lessee under the
Easterwood Ground Lease, to use such subsurface estate, all as set forth in said
Easterwood Mezzanine Deed, as more specifically described hereinafter as Parcel
10 (The Mezzanine Easements Tract):

         Being part of the Live Oak Office Building Addition, an addition to the
City of Dallas, Dallas County, Texas, as shown on the Map thereof recorded in
Volume 81122, Page 1117, of the Deed Records of Dallas County, Texas, and
situated in Lot 1, Block A/475 (Official City Numbers) of the City of Dallas,
Dallas County, Texas, and being more particularly described as follows:

         COMMENCING at a point being the present intersection of the Northerly
right-of-way line of Elm Street (an 80-foot public right-of-way) with the
Westerly right-of-way line of North St. Paul Street (a 60-foot public
right-of-way); thence South 76(degrees) 00' 00" West, along the Northerly
right-of-way line of said Elm Street, a distance of 317.90 feet to a point for
corner; and thence North 14(degrees) 00' 00" West, along the Westerly boundary
line of the above-described Parcel 2 - The Easterwood Leasehold Tract, a
distance of 25.52 feet to the POINT OF BEGINNING;

         THENCE North 14(degrees) 00' 00" West, continuing along the Westerly
boundary line of the said Parcel 2 - The Easterwood Leasehold Tract, a distance
of 22.01 feet to a point for corner, said point being the Northwest corner of
the said Parcel 2 - The Easterwood Leasehold Tract;

         THENCE North 45(degrees) 33' 42" East, along the Northerly boundary
line of the said Parcel 2 - The Easterwood Leasehold Tract, a distance of 34.05
feet to a point for corner;

         THENCE South 44(degrees) 15' 22" East, a distance of 5.12 feet to a
point for corner;

         THENCE South 45(degrees) 44' 38" West, a distance of 22.00 feet to a
point for corner;

                           Exhibit B - Page 19 of 43
<PAGE>   77

         THENCE South 44(degrees) 15' 22" East, a distance of 14.00 feet to
point for corner;

         THENCE South 45(degrees) 44' 38" West, a distance of 23.14 feet to the
POINT OF BEGINNING, and containing 446.50 square feet or 0.0103 acre of land.

TRACT G-l (The Subway Tunnel Tract)

         Being a subsurface estate only, bounded on the bottom at 397.0 feet
above M.S.L. and bounded at the top at approximately 421.5 feet above M.S.L.,
which top boundary is three feet (3') below the lowermost surface of a certain
concrete structural slab heretofore constructed above such subsurface estate by
First City Center Associates at approximately 425.0 feet above M.S.L., in and to
the following described tract or parcel of land, but excluding from such
subsurface estate all existing footings, caissons, columns, structural beams and
other supports, structural slabs, and other improvements constructed therein by
First City Center Associates, and the land, areas, and spaces in which such
improvements are located, which subsurface estate was granted by Southern
Methodist University to the City of Dallas by that certain deed (the "Easterwood
Subway Tunnel Deed"), dated May 30, 1984, and recorded on June 14, 1984, in
Volume 84118, Page 5370 of the Deed Records of Dallas County, Texas, and is
subject to the restrictions upon the City of Dallas and the reservations,
easements, and rights of access in favor of 1700 Pacific Associates Limited
Partnership, its successors and assigns as the assignee of First City Center
Associates pursuant to that Special Warranty Deed and Assignment of Ground
Leases dated June 21, 1984 and recorded June 21, 1984 in Volume 84124, Page 402
of the Deed Records of Dallas County, Texas, and any successor lessee under the
Easterwood Ground Lease, all as set forth in said Easterwood Subway Tunnel Deed,
as more specifically described hereinafter as Parcel 11 (The Subway Tunnel
Easements Tract):

         Being part of the Live Oak Office Building Addition, an addition to the
City of Dallas, Dallas County, Texas, as shown on the Map thereof recorded in
Volume 81122, Page 1117, of the Deed Records of Dallas County, Texas, and
situated in Lot 1, Block A/475 (Official City Numbers) of the City of Dallas,
Dallas County, Texas, and being more particularly described as follows:

         COMMENCING at a point being the present intersection of the Northerly
right-of-way line of Elm Street (an 80-foot public right-of-way) with the
Westerly right-of-way line of North St. Paul Street (a 60-foot public
right-of-way); thence South 76(degrees) 00' 00" West, along the Northerly
right-of-way line of said Elm Street, a distance of 317.90 feet to a point for
corner; and

                            Exhibit B - Page 20 of 43
<PAGE>   78

thence North 14(degrees) 00' 00" West, along the Westerly boundary line of the
above-described Parcel 2 - The Easterwood Leasehold Tract, a distance of 30.57
feet to the POINT OF BEGINNING;

         THENCE North 14(degrees) 00' 00" West, continuing along the Westerly
boundary line of the said Parcel 2 - The Easterwood Leasehold Tract, a distance
of 15.16 feet to a point for corner, said point being the Northwest corner of
the said Parcel 2 - The Easterwood Leasehold Tract;

         THENCE North 45(degrees) 33' 42" East, along the Northerly boundary of
the said Parcel 2 - The Easterwood Leasehold Tract, a distance of 57.99 feet to
a point for corner, said point being the Northeast corner of the said Parcel 2 -
The Easterwood Leasehold Tract;

         THENCE South 14(degrees) 00' 00" East, along the Easterly boundary line
of the said Parcel 2 - The Easterwood Leasehold Tract, a distance of 15.38 feet
to a point for corner;

         THENCE South 45(degrees) 44' 42" West, a distance of 57.88 feet to the
POINT OF BEGINNING, and containing 763.38 square feet or 0.0175 acre of land.

PARCEL 3 (The Garage Fee Tract)

         Being a part of City Block B/125 of the JAMES BENTLY SUBDIVISION, an
addition to the City of Dallas, Dallas County, Texas, as recorded in Volume AA,
Page 213, of the Deed Records of Dallas County, Texas, and a part of City Block
33/125 of the RAILROAD ADDITION, an addition to the City of Dallas, Dallas
County, Texas, as recorded in Volume 4, Page 350 of the Map Records of Dallas
County, Texas, and being more particularly described as follows:

         BEGINNING at a cross for corner at the present intersection of the
Easterly right-of-way line of North Harwood Street (a 75.25-foot public
right-of-way) with the Southerly right-of-way line of Elm Street (an 80-foot
public right-of-way);

         THENCE North 76(degrees) 00' 00" East, along the Southerly right-of-way
line of Elm Street, a distance of 235.00 feet to a nail for corner;

         THENCE South 14(degrees) 00' 00" East, a distance of 200.15 feet to a
nail for corner in the Northerly right-of-way line of Main Street (a 79.50-foot
public right-of-way);

                            Exhibit B - Page 21 of 43
<PAGE>   79

         THENCE South 76(degrees) 00' 00" West, along said Northerly
right-of-way line of Main Street, a distance of 235.00 feet to a cross for
corner in the Easterly right-of-way line of North Harwood Street;

         THENCE North 14(degrees) 00' 00" West, along said Easterly right-of-way
line of North Harwood Street, a distance of 200.15 feet to the POINT OF
BEGINNING, and containing 47,035.25 square feet or 1.0798 acres of land;

SAVE AND EXCEPT THE FOLLOWING DESCRIBED PARCEL:

         Being a part of City Block B/125 of the JAMES BENTLY SUBDIVISION, an
addition to the City of Dallas, Dallas County, Texas, as recorded in Volume AA
Page 213 of the Deed Records of Dallas County, Texas, and a part of Block 33/125
of the RAILROAD ADDITION, an addition to the City of Dallas, Dallas County,
Texas, as recorded in Volume 4, Page 350 of the Map Records of Dallas County,
Texas, and being more particularly described as follows:

         BEGINNING at a point for corner in the Southerly right-of-way line of
Elm Street (an 80-foot public right-of-way); said point being North 76(degrees)
00' 00" East, a distance of 166.00 feet from the present intersection of the
Southerly right-of-way line of Elm Street with the Easterly right-of-way line of
North Harwood Street (a 75.25-foot public right-of-way); said point also being
North 76(degrees) 00' 00" East, a distance of 175.0 feet from the former
intersection of the Southerly right-of-way line of Elm Street with the former
Easterly right-of-way line of North Harwood Street, at such intersection existed
prior to the conveyance of a 9.00 foot strip of land to the City of Dallas for
the widening of North Harwood Street by deed recorded in Volume 82093, Page 2970
of the Deed Records of Dallas County, Texas;

         THENCE South 14(degrees) 00' 00" East, a distance of 100.00 feet to a
point for corner;

         THENCE North 76(degrees) 00' 00" East, a distance of 68.00 feet to a
point for corner;

         THENCE North 14(degrees) 00' 00" West, a distance of 100.00 feet to a
point for corner, said point being in the Southerly right-of-way line of Elm
Street;

         THENCE, South 76(degrees) 00' 00" West, along the Southerly
right-of-way line of Elm Street, a distance of 68.00 feet to the POINT OF
BEGINNING, and containing 6,800.00 square feet or 0.1561 acres of land, the said
Parcel 3 containing a net of 40,235.25 square feet, or 0.9237 acres of land.

                            Exhibit B - Page 22 of 43
<PAGE>   80

PARCEL 4 (The Fonberg Leasehold Tract).

         All that certain leasehold estate (excepting the last day of the term
thereof unless so extended, in which event excepting only the last day of the
term as so extended) in and to the following described tract or parcel of land,
created by that certain Ground Lease, dated June 1, 1981, by and between Elaine
Schwartz Fonberg, et al, as Lessor, and Teerts Corporation, as Lessee, a
memorandum of which is recorded in Volume 81170, Page 4141 of the Deed Records
of Dallas County, Texas, as such Ground Lease has been assigned (i) by Teerts
Corporation to C F Pacific, Inc., by Assignment of Lease, dated March 29, 1982,
recorded in Volume 82066, Page 0977 of the Deed Records of Dallas County, Texas,
and assigned (ii) by C F Pacific, Inc., to First City Center Associates, a Texas
limited partnership, the sole general partner of which is C F Pacific, Inc., by
Assignment of Lease, dated March 29, 1982, recorded in Volume 82066, Page 0983
of the Deed Records of Dallas County, Texas; and further assigned by (iii) First
City Center Associates, a Texas limited partnership, to 1700 Pacific Associates
Limited Partnership, a Connecticut limited partnership, by that Special Warranty
Deed and Assignment of Ground Leases dated June 21, 1984 and recorded June 21,
1984 in Volume 84124, Page 402 of the Deed Records of Dallas County, Texas, and
as such Ground Lease has been amended by: (a) that certain Amendment to Ground
Lease, dated effective as of June 1, 1981; (b) that certain Second Amendment to
Ground Lease, dated May 17, 1982, a memorandum of which Second Amendment to
Ground Lease is recorded in Volume 82100, Page 2456 of the Deed Records of
Dallas County, Texas; (c) that certain Third Amendment to Lease, dated June 1,
1984, and recorded in Volume 84118, Page 5397 of the Deed Records of Dallas
County, Texas; and (d) that certain Fourth Amendment to Lease, dated June 1,
1984, and recorded in Volume 84118, Page 5418 of the Deed Records of Dallas
County, Texas, as ratified by Statement of Ground Lessor dated October 14, 1994
from the lessor to Teachers Insurance and Annuity Association of America
recorded in Volume 95120, Page 1, Deed Records, Dallas County, Texas (the said
Ground Lease, as the same has been so amended and so assigned, is herein called
the "Fonberg Ground Lease"), together with all rights, titles, interests,
options, and estates of 1700 Pacific Associates Limited Partnership in, to, and
under such Fonberg Ground Lease (the said Fonberg Ground Lease being for a term
of fifty (50) years commencing on June 1, 1981 and ending on May 31, 2031 with
such renewal and extension options as are set forth in said Fonberg Ground
Lease):

         Being a part of City Block B/125 of the JAMES BENTLY SUBDIVISION, an
addition to the City of Dallas, Dallas County, Texas, as recorded in Volume AA,
Page 213 of the Deed Records of Dallas County, Texas, and a part of City Block
33/125 of the

                            Exhibit B - Page 23 of 43
<PAGE>   81

RAILROAD ADDITION, an addition to the City of Dallas, Dallas County, Texas, as
recorded in Volume 4, Page 350 of the Map Records of Dallas County, Texas, and
being more particularly described as follows:

         BEGINNING at a point for corner in the Southerly right-of-way line of
Elm Street (an 80-foot public right-of-way); said point being North 76(degrees)
00' 00" East, a distance of 166.00 feet from the present intersection of the
Southerly right-of-way line of Elm Street with the Easterly right-of-way line of
North Harwood Street (a 75.25-foot public right-of-way), said point also being
North 76(degrees) 00' 00" East, a distance of 175.00 feet from the former
intersection of the Southerly right-of-way line of Elm Street with the former
Easterly right-of-way line of North Harwood Street, as such intersection existed
prior to the conveyance of a 9.00 foot strip of land to the City of Dallas for
the widening of North Harwood Street by deed recorded in Volume 82093, Page 2970
of the Deed Records of Dallas County, Texas;

         THENCE South 14(degrees) 00' 00" East, a distance of 100.00 feet to a
point for Corner;

         THENCE North 76(degrees) 00' 00" East, a distance of 68.00 feet to a
point for corner;

         THENCE North 14(degrees) 00' 00" West, a distance of 100.00 feet to a
point for corner, said point being in the Southerly right-of-way line of Elm
Street;

         THENCE South 76(degrees) 00' 00" West, along the Southerly right-of-way
line of Elm Street, a distance of 68.00 feet to the POINT OF BEGINNING, and
containing 6,800.00 square feet or 0.1561 acres of land.

PARCEL 5 (The Pedestrian Tunnel License Tract)

         The license rights of 1700 Pacific Associates Limited Partnership, its
successors and assigns as the assignee of First City Center Associates pursuant
to that Special Warranty Deed and Assignment of Ground Leases dated June 21,
1984 and recorded June 21, 1984 in Volume 84124, Page 402 of the Deed Records of
Dallas County, Texas, in and to a License, granting the right to use, for the
purpose of constructing, maintaining, and using a pedestrian tunnel within
subsurface space beneath Pacific Avenue, in the tract or parcel of land more
particularly described below, in accordance with, and subject to, the terms,
conditions, and provisions of City of Dallas Ordinance No. 17663, as amended by
City of Dallas Ordinance No. 17698, recorded in Volume 84040, Page 3620 of the
Deed Records of Dallas County, Texas, together with Acceptance of Ordinance as
shown in Volume 84040, Page 3643

                            Exhibit B - Page 24 of 43

<PAGE>   82

of the Deed Records of Dallas County, Texas, as ratified by Estoppel Certificate
from the City of Dallas dated September 20, 1994, recorded in Volume 95120, Page
1, Deed Records, Dallas County, Texas, such subsurface space extending from a
minimum depth of 3 feet below the crown of Pacific Avenue to a maximum depth of
24 feet below the crown of Pacific Avenue, within that certain tract or parcel
of land situated in the City of Dallas, Dallas County, Texas, and being more
particularly described as follows:

REVISED FIELD NOTES FROM ORDINANCE NO. 17698:

ALL THAT certain lot, tract or parcel of land lying and being situated in the
City and County of Dallas, Texas, more particularly described as follows:

BEING a part of Pacific Avenue between Block A/475 and Block B/477, official
City Block numbers, and being an area to accommodate a pedestrian tunnel under
said street and being more particularly described as follows:

BEGINNING at a point on a line that is 16.0 feet perpendicularly distant
northwest of and parallel with the southeast line of Pacific Avenue, said point
being South 76(degrees) 00' West, a distance of 185.5 feet along said line from
the southwest line of St. Paul Street;

THENCE South 76(degrees) 00' West along said line that is 16.0 feet
perpendicularly distant northwest of and parallel with the southeast line of
Pacific Avenue, a distance of 26.4 feet to a point for corner;

THENCE North 14(degrees) 00' West, a distance of 12.5 feet to a point for
corner;

THENCE North 76(degrees) 00' East, a distance of 8.0 feet to a point for corner;

THENCE North 14(degrees) 00' West, a distance of 51.5 feet to a point for corner
in the northwest line of Pacific Avenue;

THENCE North 76(degrees) 00' East along said northwest line of Pacific Avenue, a
distance of 18.4 feet to a point for corner;

THENCE South 14(degrees) 00' East crossing Pacific Avenue, a distance of 64.0
feet to the place of beginning and containing approximately 1,277 square feet of
land.

                            Exhibit B - Page 25 of 43
<PAGE>   83

PARCEL 6 (The Pedestrian Tunnel Easement Tract)

         The easement in favor of 1700 Pacific Associates Limited Partnership,
its successors and assigns as the assignee of First City Center Associates
pursuant to that Special Warranty Deed and Assignment of Ground Leases dated
June 21, 1984 and recorded June 21, 1984 in Volume 84124, Page 402 of the Deed
Records of Dallas County, Texas, in the following described parcel or tract of
land, created by that certain Pedestrian Tunnel Development Construction,
Maintenance, and Easements Agreement, dated June 17, 1983, by and between First
City Center Associates, a Texas limited partnership, and RepublicBank Dallas,
National Association, a national banking association, recorded in Volume 84055,
Page 4218 of the Deed Records of Dallas County, Texas, as ratified by Estoppel
Certificate from Roxford Capital Corporation, successor in interest to
RepublicBank Dallas, National Association, dated October 13, 1994, recorded in
Volume 95120, Page 1, Deed Records of Dallas County, Texas (the "Tunnel
Agreement"), which tract is more particularly described as follows:

         Being all of that certain lot, tract, or parcel of land situated in the
J. Grigsby Survey, Abstract A-495, and being part of City Block B/477 (Official
City Numbers) of the City of Dallas, Dallas County, Texas, and lying beneath the
present surface of the earth between an elevation of three feet (3') below the
crown of Pacific Avenue and an elevation of twenty-four feet (24') below the
crown of Pacific Avenue, and being more particularly described as follows:

         COMMENCING at a point being the present intersection of the Southerly
right-of-way line of Pacific Avenue (an 80-foot public right-of-way) and the
Westerly right-of-way line of North St. Paul Street (a 60-foot public
right-of-way); thence South 76(degrees) 00' 00" West, a distance of 185.50 feet
along the Southerly right-of-way line of Pacific Avenue to a point for corner;
and thence North 14(degrees) 00' 00" West, a distance of 80.00 feet, across
Pacific Avenue, to the POINT OF BEGINNING, said point being in the Northerly
right-of-way line of Pacific Avenue and also being the Northeast corner of the
above-described Parcel 5 - The Pedestrian Tunnel License Tract;

         THENCE South 76(degrees) 00' 00" West, along the Northerly right-of-way
line of Pacific Avenue and also along the Northerly boundary line of the
above-described Parcel 5 - The Pedestrian Tunnel License Tract, a distance of
18.40 feet to a point for corner;

         THENCE North 14(degrees) 00' 00" West, a distance of 21.21 feet to a
point for corner;

                            Exhibit B - Page 26 of 43
<PAGE>   84
         THENCE North 76(degrees) 00' 00" East, a distance of 18.40 feet to a
point for corner;

         THENCE South 14(degrees) 00' 00" East, a distance of 21.21 feet to a
point on the Northerly right-of-way line of Pacific Avenue, being the POINT OF
BEGINNING, and containing 390.26 square feet or .0090 acres of land.

PARCEL 7 (The Skybridge License Tract)

         The license rights of 1700 Pacific Associates Limited Partnership, its
successors and assigns as the assignee of First City Center Associates pursuant
to that Special Warranty Deed and Assignment of Ground Leases dated June 21,
1984 and recorded June 21, 1984 in Volume 84124, Page 402 of the Deed Records of
Dallas County, Texas, in and to a License, granting the right to use, for the
purpose of constructing, maintaining, and using a pedestrian skybridge within
certain airspace above North St. Paul Street, a public street, in the tract or
parcel of land more particularly described below, in accordance with, and
subject to, the terms, conditions, and provisions of City of Dallas Ordinance
No. 17664, as amended by City of Dallas Ordinance No. 17699, recorded in Volume
84040, Page 3646, Deed Records of Dallas County, Texas, as amended by City of
Dallas Ordinance No. 18309, recorded in Volume 84141, Page 3307 of the Deed
Records of Dallas County, Texas, as ratified by Estoppel Certificate from the
City of Dallas dated September 20, 1994, recorded in Volume 95120, Page 1, Deed
Records of Dallas County, Texas, such airspace being between a minimum height of
20 feet above the crown of North St. Paul Street up to a maximum height of 37
feet above the crown of North St. Paul Street, such airspace being above that
certain tract or parcel of land situated in the City of Dallas, Dallas County,
Texas, and being more particularly described as follows:

REVISED FIELD NOTES FROM ORDINANCE NO. 18309:

         BEING situated in the John Grigsby Survey, Abstract No. 495, Dallas
County, Texas, and being an area over North St. Paul Street between Block A/475
and Block 94, official City Numbers, and being more particularly described as
follows:

         COMMENCING at the present intersection of the northeast line of North
St. Paul Street with the southeast line of Pacific Avenue; and thence South
14(degrees) 00' 00" East, along the northeast line of North St. Paul Street, a
distance of 122.50 feet to the POINT OF BEGINNING;

         THENCE South 14(degrees) 00' 00" East, along said northeast line of
North St. Paul Street, a distance of 15.12 feet to a point for corner;

                            Exhibit B - Page 27 of 43
<PAGE>   85

         THENCE South 68(degrees) 25' 30" West, across North St. Paul Street a
distance of 60.47 feet to the intersection of same with the southwest line of
North St. Paul Street;

         THENCE North 14(degrees) 00' 00" West, along said southwest line of
North St. Paul Street a distance of 15.12 feet to a point for corner;

         THENCE North 68(degrees) 25' 30" East, across North St. Paul Street a
distance of 60.47 feet to the POINT OF BEGINNING and containing approximately
907 square feet of land.

PARCEL 8 (The Skybridge Easement Tracts)

          The easements in favor of 1700 Pacific Associates Limited Partnership,
its successors and assigns as the assignee of First City Center Associates
pursuant to that Special Warranty Deed and Assignment of Ground Leases dated
June 21, 1984 and recorded June 21, 1984 in Volume 84124, Page 402 of the Deed
Records of Dallas County, Texas, created by that certain Skybridge Development,
Construction, Maintenance, and Easements Agreement, dated August 12, 1983, by
and among First City Center Associates, a Texas limited partnership, Pacific
Place Partners, Ltd., a Texas limited partnership, and Pacific Avenue
Associates, a Texas limited partnership, recorded in Volume 83176, Page 2482 of
the Deed Records of Dallas County, Texas, as assigned to 1700 Pacific Associates
Limited Partnership in that Pedestrian Walkway Development, Construction,
Maintenance, and Easements Agreement Assignment dated June, 1995 and recorded in
the Deed Records, Dallas County, Texas, and as amended by that Amendment to
Pedestrian Walkway Development, Construction, Maintenance, and Easements
Agreement dated June, 1995 and recorded or to be recorded in the Deed Records,
Dallas County, Texas, and as ratified by that Estoppel Certificate executed by
1700 Pacific Associates Limited Partnership dated June, 1995 and recorded or to
be recorded in the Deed Records, Dallas County, Texas, and as ratified by that
Certificate executed by Prentis/Copley Investment Group dated June, 1995 and
recorded or to be recorded in the Deed Records, Dallas County, Texas (the
"Skybridge Agreement"), in certain airspace above the following two (2) tracts
or parcels of land, described as Parcels 8A and 8B below:

         Parcel 8A - The Pacific Avenue Associates Skybridge Tract

         Being situated in City Block 94 (Official City Numbers) of the City of
Dallas, Dallas County, Texas, and being between elevation 475.00' above M.S.L.
and elevation 490.00' above M.S.L., and being more particularly described as
follows:

                            Exhibit B - Page 28 of 43
<PAGE>   86
         BEGINNING at a point for corner in the Easterly right-of-way line of
North St. Paul Street, (a 60-foot public right-of-way) said point being North
14(degrees) 00' 00" West, a distance of 58.33 feet along the Easterly
right-of-way line of North St. Paul Street from the present intersection of the
Easterly right-of-way line of North St. Paul Street with the Northerly
right-of-way line of Elm Street (an 80-foot public right-of-way);

         THENCE North 76(degrees) 00' 00" East, a distance of 110.47 feet to a
point for corner, said point being the Southwest corner of the below-described
Parcel 8B - The Pacific Place Partners Skybridge Tract;

         THENCE North 14(degrees) 00' 00" West, along the Westerly boundary of
the below-described Parcel 8B - the Pacific Place Partners Skybridge Tract, a
distance of 19.68 feet to a point for corner;

         THENCE South 76(degrees) 00' 00" West, a distance of 110.47 feet to a
point for corner, said point being in the Easterly right-of-way line of North
St. Paul Street;

         THENCE South 14(degrees) 00' 00", East, along the Easterly right-of-way
line, of North St. Paul Street and, for part of its distance, along the Easterly
boundary line of the above-described Parcel 7 - The Skybridge License Tract, a
distance of 19.68 feet to the POINT OF BEGINNING, and containing 2174.05 square
feet.

         Parcel 8B - The Pacific Place Partners Skybridge Tract

         Being situated in City Block 94 (Official City Numbers) of the City of
Dallas, Dallas County, Texas, and being between elevation 475.00' above M.S.L.
and elevation 490.00' above M.S.L., and being more particularly described as
follows:

         COMMENCING at the present intersection of the Northerly right-of-way
line of Elm Street (an 80-foot public right-of-way) with the Easterly
right-of-way line of North St. Paul Street (a 60-foot public right-of-way);
thence North 14(degrees) 00' 00" West, a distance of 58.33 feet along the
Easterly right-of-way line of North St. Paul Street to a point; and thence North
76(degrees) 00' 00" East, a distance of 110.47 feet to the POINT OF BEGINNING,
said POINT OF BEGINNING being the Southeast corner of the above-described Parcel
8A - The Pacific Avenue Associates Skybridge Tract;

         THENCE North 14(degrees) 00' 00" West, along the Easterly boundary line
of the above-described Parcel 8A - The Pacific Avenue Associates Skybridge
Tract, a distance of 19.68 feet to a point for corner;

                            Exhibit B - Page 29 of 43
<PAGE>   87
         THENCE North 76(degrees) 00' 00" East, a distance of 5.00 feet to a
point for corner;

         THENCE South 14(degrees) 00' 00" East, a distance of 19.68 feet to a
point for corner;

         THENCE South 76(degrees) 00' 00" West, a distance of 5.00 feet to the
POINT OF BEGINNING, and containing 98.4 square feet.

PARCEL 9 (The Open Areas Easements Tract)

         The easements in favor of 1700 Pacific Associates Limited Partnership,
its successors and assigns as the assignee of First City Center Associates
pursuant to that Special Warranty Deed and Assignment of Ground Leases dated
June 21, 1984 and recorded June 21, 1984 in Volume 84124, Page 402 of the Deed
Records of Dallas County, Texas, to use the surface of the aforedescribed Tract
B (The Open Areas Tract), Tract C (The North St. Paul Street Sidewalk Tract),
and Tract B-l (The Easterwood Open Areas Tract) (collectively, the "Open Areas
Tracts") for pedestrian access to the building constructed by First City Center
Associates within the aforedescribed Parcels 1 and 2, and the rights to use,
maintain, replace, and restore those portions of any subsurface improvements
constructed by First City Center Associates which may penetrate to or through
the surface of the ground within the Open Areas Tracts, as granted to and/or
reserved by or for the benefit of First City Center Associates, its successors
and assigns (including 1700 Pacific Associates Limited Partnership), pursuant to
the terms of the aforedescribed FCCA Open Areas Deed (as defined in the
description of Tract B), the Easterwood Open Areas Deed (as defined in the
description of Tract B-l), that certain Master Corrective Deed from the City of
Dallas to C F Pacific, Inc. (as described in the description of Tract B), and
that certain Master Corrective Deed from C F Pacific, Inc. to First City Center
Associates recorded in Volume 84118, Page 5315, Deed Records of Dallas County,
Texas.

PARCEL 10 (The Mezzanine Easements Tract)

         The easements in favor of 1700 Pacific Associates Limited Partnership,
its successors and assigns as the assignee of First City Center Associates
pursuant to that Special Warranty Deed and Assignment of Ground Leases dated
June 21, 1984 and recorded June 21, 1984 in Volume 84124, Page 402 of the Deed
Records of Dallas County, Texas, to use the aforedescribed Tracts D, D-l, E,
E-l, F, and F-l (collectively, the "Mezzanine Tracts") to: (a) have access
through said Mezzanine Tracts for the purpose of repairing, maintaining, and
replacing the structural improvements located therein, the ownership of which
had been reserved by First City Center Associates, and (b) to use the said
Mezzanine

                           Exhibit B - Page 30 of 43
<PAGE>   88

Tracts until such time as the City of Dallas requires said Mezzanine Tracts for
the construction of transit-related facilities therein, as such easements had
been reserved by or for the benefit of First City Center Associates, its
successors and assigns (including 1700 Pacific Associates Limited Partnership),
pursuant to the terms of the FCCA Mezzanine Deed (as defined in the descriptions
of Tracts D, E, and F) and the Easterwood Mezzanine Deed (as defined in the
descriptions of Tracts D-1, E-1 and F-1).

PARCEL 11 (The Subway Tunnel Easements Tract)

         The easements in favor of 1700 Pacific Associates Limited Partnership,
its successors and assigns as the assignee of First City Center Associates
pursuant to that Special Warranty Deed and Assignment of Ground Leases dated
June 21, 1984 and recorded June 21, 1984 in Volume 84124, Page 402 of the Deed
Records of Dallas County, Texas, to use the aforedescribed Tracts G and G-l
(collectively, the "Subway Tunnel Tracts") to have access through said Subway
Tunnel Tracts for the purpose of repairing, maintaining, and replacing
structural improvements located therein, the ownership of which had been
reserved by First City Center Associates, its successors and assigns (including
1700 Pacific Associates Limited Partnership), as such easements have been
reserved by or for the benefit of First City Center Associates pursuant to the
terms of the FCCA Subway Tunnel Deed (as defined in the description of Tract G)
and the Easterwood Subway Tunnel Deed (as defined in the description of Tract
G-1).

PARCEL 12 (The Elm Street Garage Easement Tract)

         Cross-access easement as created in that certain Operating Agreement
and Cross-Access Easement, dated 10/17/86, as evidenced by the Memorandum of
Operating Agreement and Cross-Access Easement, dated 9/30/88, recorded in Volume
88199, Page 4203, Deed Records of Dallas County, Texas; as amended by First
Amendment, dated 9/28/88, recorded in Volume 88199, Page 4228, Deed Records of
Dallas County, Texas; as assigned to 1700 Pacific Associates Limited Partnership
by Assignment Agreement RE Operating and Cross-Access Easement dated June, 1995
recorded or to be recorded in the Deed Records, Dallas County, Texas, as amended
by that Amendment to Operating and Cross-Access Easement dated June, 1995
recorded in the Deed Records, Dallas County, Texas, as subordinated by
Subordination to Operating Agreement and Cross-Access Easement dated March 7,
1995 recorded in Volume 95047, Page 4589, Deed Records, Dallas County, Texas,
said easement being over and across the following described tract of land, to
wit:

                            Exhibit B - Page 31 of 43
<PAGE>   89

         BEING all of Tract "G" Addition in City Block 33/125, an Addition to
the City of Dallas, Texas according to the plat thereof recorded in Volume
86027, Page 3056, Dallas County, Texas, more particularly described by metes and
bounds as follows:

         BEGINNING at an "X" cut in concrete at the northeast corner of said
Tract "G" Addition, at the intersection of the southerly R.O.W. line of Elm
Street (an 80.00 foot wide R.O.W.) and the westerly R.O.W. line of North Pearl
Street (an 80.00 foot wide R.O.W.);

         THENCE South 14 degrees 00 minutes 00 seconds East, along said westerly
R.O.W. line, a distance of 200.00 feet to an "X" cut in concrete at the
intersection of said westerly R.O.W. line with the northerly R.O.W. line of Main
Street (a 79.50 foot wide R.O.W.) for the southeast corner of said Tract "G"
Addition;

         THENCE South 76 degrees 00 minutes 00 seconds West, along said
northerly R.O.W. line, a distance of 225.10 feet to an "X" cut in concrete for
the southwest corner of said Tract "G" Addition;

         THENCE North 14 degrees 00 minutes 00 seconds West, departing from said
northerly R.O.W. line, a distance of 200.00 feet to an "X" cut in concrete on
the southerly R.O.W. line of Elm Street for the northwest corner of said Tract
"G" Addition;

         THENCE North 76 degrees 00 minutes 00 seconds East, along said
southerly R.O.W. line, a distance of 225.10 feet to the POINT OF BEGINNING, and
containing 45,020.00 square feet or 1.0335 acres of land, more or less.

PARCEL 13 (The Elm Street Tunnel to 1717 Main Building Easement Tract)

         Easement created by Pedestrian Tunnel Maintenance and Easements
Agreement dated September 30, 1988, by and between First City Center Associates
II, a Texas limited partnership, and Elm Block Development Limited Partnership,
a Texas limited partnership, recorded in Volume 88199, Page 4066, Deed Records,
Dallas County, Texas; as amended by First Amendment to Pedestrian Tunnel
Maintenance and Easements Agreement dated October 7, 1988, by and between First
City Center Associates II, a Texas limited partnership, and Elm Block
Development Limited Partnership, a Texas limited partnership, recorded in Volume
88199, Page 4240, Deed Records, Dallas County, Texas, as assigned to 1700
Pacific Associates Limited Partnership by that Assignment of Pedestrian Tunnel,
Maintenance and Easements Agreement dated June, 1995 recorded or to be recorded
in the Deed Records, Dallas County,

                            Exhibit B - Page 32 of 43
<PAGE>   90

Texas, and as ratified by that Mutual Estoppel Agreement dated June, 1995,
recorded or to be recorded in the Deed Records, Dallas County, Texas, over the
following described tract of land:

         ALL THAT CERTAIN lot, tract or parcel of land lying and being situated
in the City and County of Dallas, Texas, and being more particularly
described as follows:

         Being part of Elm Street as described by Smith, Murphy, and Martin's
Addition, an addition to the City of Dallas, Texas, according to the map or plat
thereof, recorded in Volume 143, Page 403, Deed Records, Dallas County, Texas
and being adjacent to Blocks 95 and 94, Official City Numbers, and being more
particularly described as follows:

         COMMENCING at the intersection of the East line of Ervay Street (55
foot wide) with the South line of Elm Street (80 foot wide), said intersection
being the northwest corner of said Block 95;

         THENCE NORTH 76 Degrees 00 Minutes 00 Seconds East along the South line
of Elm Street, a distance of 193.42 feet to the POINT OF BEGINNING of the herein
described tract;

         THENCE NORTH 14 Degrees 00 Minutes 00 Seconds West a distance of 38.86
feet to a point for corner;

         THENCE NORTH 43 Degrees 29 Minutes 27 Seconds West, a distance of 30.03
feet to a point for corner;

         THENCE NORTH 14 Degrees 00 Minutes 00 Seconds West, a distance of 15.00
feet to a point for corner;

         THENCE NORTH 76 Degrees 00 Minutes 00 Seconds East, a distance of 27.90
feet to a point for corner;

          THENCE SOUTH 14 Degrees 00 Minutes 00 Seconds East, a distance of
15.00 feet to a point for corner;

         THENCE SOUTH 43 Degrees 29 Minutes 27 Seconds East, a distance of 56.77
feet to a point for corner;

         THENCE SOUTH 14 Degrees 00 Minutes 00 seconds East, a distance of 15.58
feet to a point for corner in said South line of Elm Street;

         THENCE SOUTH 76 Degrees 00 Minutes 00 Seconds West along said South
line of Elm Street, a distance of 41.06 feet to the POINT OF BEGINNING and
containing 2,590 square feet or 0.059 acres of land, more or less.

                            Exhibit B - Page 33 of 43
<PAGE>   91

PARCEL 14 (The Elm Street Tunnel to 1717 Main Building License Tract)

          License Estate created by City of Dallas Ordinance No. 19329 recorded
in Volume 87002, Page 6318 and in Volume 88189, Page 2683, Deed Records, Dallas
County, Texas, as assigned to 1700 Pacific Associates Limited Partnership by
that Assignment of Pedestrian Tunnel, Maintenance and Easements Agreement dated
June, 1995 recorded or to be recorded in the Deed Records, Dallas County, Texas,
as ratified by Estoppel Certificate from the City of Dallas dated September 20,
1994, recorded in Volume 95120, Page 1, Deed Records of Dallas County, Texas,
over the following described tract of land:

         ALL THAT CERTAIN lot, tract or parcel of land lying and being situated
in the City and County of Dallas, Texas, and being more particularly described
as follows:

         Being part of Elm Street as described by Smith, Murphy, and Martin's
Addition, an addition to the City of Dallas, Texas, according to the map or plat
thereof, recorded in Volume 143, Page 403, Deed Records, Dallas County, Texas
and being adjacent to Blocks 95 and 94, Official City Numbers, and being more
particularly described as follows:

         COMMENCING at the intersection of the East line of Ervay Street (55
foot wide) with the South line of Elm Street (80 foot wide), said intersection
being the northwest corner of said Block 95;

         THENCE NORTH 76 Degrees 00 Minutes 00 Seconds East along the South line
of Elm Street, a distance of 193.42 feet to the POINT OF BEGINNING of the herein
described tract;

         THENCE NORTH 14 Degrees 00 Minutes 00 Seconds West a distance of 38.86
feet to a point for corner;

         THENCE NORTH 43 Degrees 29 Minutes 27 Seconds West, a distance of 30.03
feet to a point for corner;

         THENCE NORTH 14 Degrees 00 Minutes 00 Seconds West, a distance of 15.00
feet to a point for corner;

         THENCE NORTH 76 Degrees 00 Minutes 00 Seconds East, a distance of 27.90
feet to a point for corner;

         THENCE SOUTH 14 Degrees 00 Minutes 00 Seconds East, a distance of 15.00
feet to a point for corner;

                            Exhibit B - Page 34 of 43
<PAGE>   92

         THENCE SOUTH 43 Degrees 29 Minutes 27 Seconds East, a distance of 56.77
feet to a point for corner;

         THENCE SOUTH 14 Degrees 00 Minutes 00 Seconds East, a distance of 15.58
feet to a point for corner in said South line of Elm Street;

         THENCE SOUTH 76 Degrees 00 Minutes 00 Seconds West along said South
line of Elm Street, a distance of 41.06 feet to the POINT OF BEGINNING and
containing 2,590 square feet or 0.059 acre of land, more or less.

PARCEL 15 (The Pacific Place Second Floor Pedestrian Walkway)

         Nonexclusive Easement Estate created by that certain Pedestrian Walkway
Development, Construction, Maintenance, and Easements Agreement executed by and
between First City Center Associates II, a Texas limited partnership, The
Prentiss/Copley Investment Group, a Delaware general partnership, and Pacific
Place Partners, Ltd., a Texas limited partnership dated October 12, 1988, filed
December 31, 1991, recorded in Volume 91252, Page 3046, Deed Records, Dallas
County, Texas, as amended by First Amendment to Pedestrian Walkway Development,
Construction, Maintenance, and Easements Agreement recorded in Volume 91252,
Page 3037, Deed Records, Dallas County, Texas, as modified by Letter Agreement
recorded in Volume 91252, Page 5575, Deed Records, Dallas County, Texas, as
assigned to 1700 Pacific Associates Limited Partnership by Pedestrian Walkway
Development, Construction, Maintenance, and Easements Agreement Assignment dated
June, 1995 and recorded or to be recorded in the Deed Records, Dallas County,
Texas, as amended by Third Amendment to Pedestrian Walkway Development,
Construction, Maintenance, and Easements Agreement dated June, 1995 and recorded
or to be recorded in the Deed Records, Dallas County, Texas, as ratified by
various estoppel certificates executed by First City Center Associates II, 1910
PP Limited Partnership, Prentis/Copley Investment Group, and 1700 Pacific
Associates Limited Partnership and all dated June, 1995 and recorded or to be
recorded in the Deed Records, Dallas County, Texas, as also ratified by the
Certificate from The Prentis/Copley Investment Group dated June, 1995 and
recorded or to be recorded in the Deed Records, Dallas County, Texas, over the
following described tract of land:

         BEING all of that certain lot, tract or parcel of land situated in the
J. Grigsby Survey, A-495, and in City Block 94, Official City Numbers of the
City of Dallas, Dallas County, Texas, and also being all of those same two
tracts of land described as Tract One and Tract Two in deed from Martin Hull
Sparks, et al, to B.R. McLendon recorded in Volume 69110, Page 0420 of the Deed
Records of Dallas County, Texas, and being more particularly described as
follows:

                            Exhibit B - Page 35 of 43
<PAGE>   93
         BEGINNING at a 60p nail for corner in the North R.O.W. line of Elm
Street (an 80' R.O.W.); said point being South 76 degrees 00 minutes 00 seconds
West, 187.17 feet from the present intersection of the North line of Elm Street
with the West R.O.W. line of North Harwood Street (a 66.25' R.O.W.);

         THENCE South 76 degrees 00 minutes 00 seconds West, 130.77 feet with
the North line of Elm Street to a 8p nail at Southeast corner of that same tract
of land described in deed to William D. Felder Jr., Trustee, recorded in Volume
70134, Page 0340 of the Deed Records of Dallas County, Texas;

         THENCE North 14 degrees 00 minutes 00 seconds West, 200.00 feet with
the East line of the Felder tract to a point for corner in the South R.O.W. line
of Pacific Avenue (an 80' R.O.W.);

         THENCE North 76 degrees 00 minutes 00 seconds East, 130.77 feet with
the South line of Pacific Avenue to the Northwest corner of that same tract of
land described in deed to the City of Dallas, recorded in Volume 76250, Page
0261 of the Deed Records of Dallas County, Texas;

         THENCE South 14 degrees 00 minutes 00 seconds East, 200.00 feet with
the West line of the City of Dallas tract to the PLACE OF BEGINNING and
containing 26,154.00 square feet or 0.6004 acres of land, more or less.

PARCEL 16 (The Elm Street Skybridge Easement Tract)

         Nonexclusive Easement Estate as created by Pedestrian Walkway,
Development, Construction, Maintenance, and Easements Agreement recorded in
Volume 91252, Page 3046, Deed Records, Dallas County, Texas, as amended by First
Amendment to Pedestrian Walkway, Development, Construction, Maintenance, and
Easements Agreement recorded in Volume 91252, Page 3037, Deed Records, Dallas
County, Texas, as modified by Letter Agreement recorded in Volume 91252, Page
5575, Deed Records, Dallas County, Texas, as assigned to 1700 Pacific Associates
Limited Partnership by Pedestrian Walkway Development, Construction,
Maintenance, and Easements Agreement Assignment dated June, 1995 and recorded or
to be recorded in the Deed Records, Dallas County, Texas, as amended by Third
Amendment to Pedestrian Walkway Development, Construction, Maintenance, and
Easements Agreement dated June, 1995 and recorded or to be recorded in the Deed
Records, Dallas County, Texas, as ratified by various estoppel certificates
executed by First City Center Associates II, 1910 PP Limited Partnership,
Prentis/Copley Investment Group, and 1700 Pacific Associates Limited Partnership
and all dated June, 1995 and

                            Exhibit B - Page 36 of 43
<PAGE>   94

recorded or to be recorded in the Deed Records, Dallas County, Texas, as also
ratified by the Certificate from The Prentis/Copley Investment Group dated June,
1995 and recorded or to be recorded in the Deed Records, Dallas County, Texas,
over the following described tract of land:

         FIELD NOTES FOR GRANTING A PRIVATE LICENSE TO CADILLAC FAIRVIEW URBAN
DEVELOPMENT, INC., AND PACIFIC PLACE PARTNERS, LTD. FOR ELEVATED PEDESTRIANWAY
CROSSING ELM STREET ADJACENT TO BLOCKS 94 AND 107:

         BEING situated in the John Grigsby Survey, Abstract No. 495, Dallas
County Texas, and being a part of Elm Street adjacent to Blocks 94 and 107,
Official City Numbers, and being more particularly described as follows:

         BEGINNING at a point in the southerly line of Elm Street that is 239.26
feet westerly and along said southerly line from the intersection of same with
the westerly line of Harwood Street;

         THENCE in a westerly direction along said southerly line, a distance of
15.67 feet to a point for corner;

         THENCE angle right 90 degrees 00 minutes and in a northerly direction,
a distance of 80.0 feet to the intersection of same with the northerly line of
Elm Street;

         THENCE angle right 90 degrees 00 minutes and in an easterly direction
along said northerly line, a distance of 15.67 feet to point for corner;

         THENCE angle right 90 degrees 00 minutes and in a southerly direction,
a distance of 80.0 feet to the place of beginning and containing approximately
1253 square feet of land, more or less.

PARCEL 17 (The Pocket Park Walkway Tract)

         Nonexclusive Easement Estate created by that certain Pedestrian Walkway
Development, Construction, Maintenance, and Easements Agreement executed by and
between First City Center Associates II, a Texas limited partnership, The
Prentiss/Copley Investment Group, a Delaware general partnership, and Pacific
Place Partners, Ltd., a Texas limited partnership dated October 12, 1988, filed
December 31, 1991, recorded in Volume 91252, Page 3046, Deed Records, Dallas
County, Texas, as amended by First Amendment to Pedestrian Walkway Development,
Construction, Maintenance, and Easements Agreement recorded in Volume 91252,
Page 3037, Deed Records, Dallas County, Texas, as modified by Letter Agreement
recorded in Volume 91252, Page 5575, Deed

                            Exhibit B - Page 37 of 43
<PAGE>   95

Records, Dallas County, Texas, as assigned to 1700 Pacific Associates Limited
Partnership by Pedestrian Walkway Development, Construction, Maintenance, and
Easements Agreement Assignment dated June, 1995 and recorded or to be recorded
in the Deed Records, Dallas County, Texas, as amended by Third Amendment to
Pedestrian Walkway Development, Construction, Maintenance, and Easements
Agreement dated June, 1995 and recorded or to be recorded in the Deed Records,
Dallas County, Texas, as ratified by various estoppel certificates executed by
First City Center Associates II, 1910 PP Limited Partnership, Prentis/Copley
Investment Group, and 1700 Pacific Associates Limited Partnership and all dated
June, 1995 and recorded or to be recorded in the Deed Records, Dallas County,
Texas, as also ratified by the Certificate from The Prentis/Copley Investment
Group dated June, 1995 and recorded or to be recorded in the Deed Records,
Dallas County, Texas, over the following described tract of land:

         BEING all of that certain lot, tract or parcel of land situated in the
J. Grigsby Survey, A-495, and in City Block 107, Official Numbers of the City of
Dallas, Dallas County, Texas and being more particularly described as follows:

         BEGINNING at a point for corner in the South R.O.W. line of Elm Street
(an 80' R.O.W.); said point being North 76 degrees 00 minutes 00 seconds East,
175.00 feet from the present intersection of the South line of Elm Street with
the East R.O.W. line of North St. Paul Street (a variable width R.O.W.);

         THENCE North 76 degrees 00 minutes 00 seconds East, 92.50 feet with the
South line of Elm Street to the Northwest corner of the W.O. Bankston and Max
Williams 0.1146 acre tract of land;

         THENCE South 14 degrees 00 minutes 00 seconds East, 100.00 feet with
the West line of Bankston & Williams tract to a point for corner in the North
line of Joske's property;

         THENCE South 76 degrees 00 minutes 00 seconds West, 92.50 feet with the
Joske's property line to a point for corner;

         THENCE North 14 degrees 00 minutes 00 seconds West, 100.00 feet with
the Joske's property line to the PLACE OF BEGINNING and containing 9,250.00
square feet or 0.2123 acres of land, more or less.

PARCEL 18 (The McCrory Walkway Tract)

         Nonexclusive Easement Estate created by that certain Pedestrian Walkway
Development, Construction, Maintenance, and Easements Agreement executed by and
between First City Center Associates II, a Texas limited partnership, The
Prentiss/Copley

                            Exhibit B - Page 38 of 43
<PAGE>   96

Investment Group, a Delaware general partnership, and Pacific Place Partners,
Ltd., a Texas limited partnership dated October 12, 1988, filed December 31,
1991, recorded in Volume 91252, Page 3046, Deed Records, Dallas County, Texas,
as amended by First Amendment to Pedestrian Walkway Development, Construction,
Maintenance, and Easements Agreement recorded in Volume 91252, Page 3037, Deed
Records, Dallas County, Texas, as modified by Letter Agreement recorded in
Volume 91252, Page 5575, Deed Records, Dallas County, Texas, as assigned to 1700
Pacific Associates Limited Partnership by Pedestrian Walkway Development,
Construction, Maintenance, and Easements Agreement Assignment dated June, 1995
and recorded or to be recorded in the Deed Records, Dallas County, Texas, as
amended by Third Amendment to Pedestrian Walkway Development, Construction,
Maintenance, and Easements Agreement dated June, 1995 and recorded or to be
recorded in the Deed Records, Dallas County, Texas, as ratified by various
estoppel certificates executed by First City Center Associates II, 1910 PP
Limited Partnership, Prentis/Copley Investment Group, and 1700 Pacific
Associates Limited Partnership and all dated June, 1995 and recorded or to be
recorded in the Deed Records, Dallas County, Texas, as also ratified by the
Certificate from The Prentis/Copley Investment Group dated June, 1995 and
recorded or to be recorded in the Deed Records, Dallas County, Texas, over the
following described tract of land:

TRACT A:

         BEING a part of Block 107, City of Dallas, Dallas County, Texas, and
being more particularly described as follows:

         BEGINNING at a point in the Southerly line of Elm Street, a distance of
65.75 feet Westerly along the Southerly line of Elm Street from its intersection
with the Westerly line of Harwood Street as widened (a 66.25 foot street);

         THENCE Westerly along the Southerly line of Elm Street, a distance of
50.00 feet to a point for corner;

         THENCE 90 degrees 00 minutes to the left and parallel to the Westerly
line of Harwood Street, a distance of 100.00 feet, a point for corner;

         THENCE 90 degrees 00 minutes to the left and parallel to the Southerly
line of Elm Street a distance of 50.00 feet, a point for corner;

         THENCE 90 degrees 00 minutes to the left and parallel to the Westerly
line of Harwood Street, a distance of 100.00 feet to the PLACE OF BEGINNING and
containing 5,000 square feet, more or less.

                            Exhibit B - Page 39 of 43
<PAGE>   97

TRACT B:

         BEING a 50 feet X 100 feet out of Block 107, Official City Numbers, in
the City of Dallas, Texas, and being more particularly described as follows:

         BEGINNING at a point 165.75 feet South 76 degrees West from the present
Southwest corner of Elm and Harwood Streets (Harwood Street having been widened
as evidenced by widening proceeding of the City of Dallas) on the South side of
Elm Street, said beginning point being the original Northwest corner of a tract
of land described in a Deed of Trust from Mary D. Ewell to C.E. Wellesley,
Trustee, dated September 10, 1988, recorded in Volume 20, Page 23, Deed of Trust
Records of Dallas County, Texas;

         THENCE North 76 degrees East with the South line of Elm Street, 50
feet to a stake in South line of Elm Street;

         THENCE South 14 degrees East, parallel with Harwood Street, as widened,
100 feet to a stake;

         THENCE South 76 degrees West, parallel with Elm Street, 50 feet to a
stake in the original West line of Mary D. Ewell tract;

         THENCE North 14 degrees West with said line, parallel with Harwood
Street, 100 feet to the PLACE OF BEGINNING.

PARCEL 19 (The Park Walkway Tract)

         Nonexclusive Easement Estate created by that certain Pedestrian Walkway
Development, Construction, Maintenance, and Easements Agreement executed by and
between First City Center Associates II, a Texas limited partnership, The
Prentiss/Copley Investment Group, a Delaware general partnership, and Pacific
Place Partners, Ltd., a Texas limited partnership dated October 12, 1988, filed
December 31, 1991, recorded in Volume 91252, Page 3046, Deed Records, Dallas
County, Texas, as amended by First Amendment to Pedestrian Walkway Development,
Construction, Maintenance, and Easements Agreement recorded in Volume 91252,
Page 3037, Deed Records, Dallas County, Texas, as modified by Letter Agreement
recorded in Volume 91252, Page 5575, Deed Records, Dallas County, Texas, as
assigned to 1700 Pacific Associates Limited Partnership by Pedestrian Walkway
Development, Construction, Maintenance, and Easements Agreement Assignment dated
June, 1995 and recorded or to be recorded in the Deed Records, Dallas County,
Texas, as amended by Third Amendment to Pedestrian Walkway Development,
Construction, Maintenance, and Easements Agreement dated June, 1995 and recorded
or to be recorded in the Deed Records, Dallas County, Texas, as ratified by
various estoppel certificates executed by First City Center

                            Exhibit B - Page 40 of 43
<PAGE>   98

Associates II, 1910 PP Limited Partnership, Prentis/Copley Investment Group, and
1700 Pacific Associates Limited Partnership and all dated June, 1995 and
recorded or to be recorded in the Deed Records, Dallas County, Texas, as also
ratified by the Certificate from The Prentis/Copley Investment Group dated June,
1995 and recorded or to be recorded in the Deed Records, Dallas County, Texas,
over the following described tract of land:

         BEING all of that certain lot, tract or parcel of land situated in the
J. Grigsby Survey, A-495, and in City Block 107, Official City Numbers of the
City of Dallas, Dallas County, Texas, and being more particularly described as
follows:

         BEGINNING at a nail for corner at the present intersection of the South
R.O.W. line of Elm Street (an 80' R.O.W.) with the West R.O.W. line of North
Harwood Street (a 66.25' R.O.W.);

         THENCE South 14 degrees 00 minutes 00 seconds East, 100.00 feet with
the West line of North Harwood Street to a cross for corner at the Northeast
corner of the L. Ronald Milner 0.1917 acre tract;

         THENCE South 76 degrees 00 minutes 00 seconds West, 65.75 feet with the
North line of the Milner tract to the Southeast corner of the W.O. Bankston and
Max Williams 5000 square foot tract;

         THENCE North 14 degrees 00 minutes 00 seconds West, 100.00 feet with
the East line of the Bankston and Williams tract to a point for corner in the
South line of Elm Street;

         THENCE North 76 degrees 00 minutes 00 seconds East, 65.75 feet with the
South line of Elm Street to the PLACE OF BEGINNING and containing 6,575.00
square feet or 0.1509 acres of land, more or less.

PARCEL 20 (The Harwood Skybridge Easement Tract)

         Nonexclusive Easement Estate as created by Pedestrian Walkway,
Development, Construction, Maintenance, and Easements Agreement recorded in
Volume 91252, Page 3046, Deed Records, Dallas County, Texas, as amended by First
Amendment to Pedestrian Walkway, Development, Construction, Maintenance, and
Easements Agreement recorded in Volume 91252, Page 3037, Deed Records, Dallas
County, Texas, as modified by Letter Agreement recorded in Volume 91252, Page
5575, Deed Records, Dallas County, Texas, as assigned to 1700 Pacific Associates
Limited Partnership by Pedestrian Walkway Development, Construction,
Maintenance, and Easements Agreement Assignment dated June, 1995 and recorded or
to be recorded in the Deed Records, Dallas County, Texas, as

                            Exhibit B - Page 41 of 43
<PAGE>   99

amended by Third Amendment to Pedestrian Walkway Development, Construction,
Maintenance, and Easements Agreement dated June, 1995 and recorded or to be
recorded in the Deed Records, Dallas County, Texas, as ratified by various
estoppel certificates executed by First City Center Associates II, 1910 PP
Limited Partnership, Prentis/Copley Investment Group, and 1700 Pacific
Associates Limited Partnership and all dated June, 1995 and recorded or to be
recorded in the Deed Records, Dallas County, Texas, as also ratified by the
Certificate from The Prentis/Copley Investment Group dated June, 1995 and
recorded or to be recorded in the Deed Records, Dallas County, Texas, over the
following described tract of land:

         BEING a tract of land situated in the John Grigsby Survey, Abstract No.
495, Dallas County, Texas and being a part of North Harwood Street adjacent to
Blocks 107 and 125, Official City Numbers, and being more particularly described
as follows:

         BEGINNING at a point in the westerly line of North Harwood Street that
is South 14 degrees 00 minutes 00 seconds East, 84.33 feet along said Westerly
line from the intersection of same with the Southerly line of Elm Street;

         THENCE South 14 degrees 00 minutes 00 seconds East along said Westerly
line, a distance of 15.67 feet to a point for corner;

         THENCE North 76 degrees 00 minutes 00 seconds East crossing said North
Harwood Street, a distance of 75.25 feet to a point on the Easterly line of
Harwood Street;

         THENCE North 14 degrees 00 minutes 00 seconds West along said Easterly
line, a distance of 15.67 feet to a point for corner;

         THENCE South 76 degrees 00 minutes 00 seconds West crossing said North
Harwood Street, a distance of 75.25 feet to the POINT OF BEGINNING and embracing
1,179.17 Square Feet or 0.027 acres of land, more or less.

PARCEL 21 (The Harwood Skybridge License Tract)

         License Estate as created by City of Dallas Ordinance No. 18664
recorded in Volume 85186, Page 2227, Deed Records, Dallas County, Texas, over
the following described tract of land:

         BEING a tract of land situated in the John Grigsby Survey, Abstract No.
495, Dallas County, Texas and being a part of North Harwood Street adjacent to
Blocks 107 and 125, Official City Numbers, and being more particularly described
as follows:

                            Exhibit B - Page 42 of 43
<PAGE>   100

         BEGINNING at a point in the westerly line of North Harwood Street that
is South 14 degrees 00 minutes 00 seconds East, 84.33 feet along said Westerly
line from the intersection of same with the Southerly line of Elm Street;

         THENCE South 14 degrees 00 minutes 00 seconds East along said Westerly
line, a distance of 15.67 feet to a point for corner;

         THENCE North 76 degrees 00 minutes 00 seconds East crossing said North
Harwood Street, a distance of 75.25 feet to a point on the Easterly line of
Harwood Street;

         THENCE North 14 degrees 00 minutes 00 seconds West along said Easterly
line, a distance of 15.67 feet to a point for corner;

         THENCE South 76 degrees 00 minutes 00 seconds West crossing said North
Harwood Street, a distance of 75.25 feet to the POINT OF BEGINNING and embracing
1,179.17 Square Feet or 0.027 acres of land, more or less.

                           Exhibit B - Page 43 of 43               June 23, 1995
<PAGE>   101
                                    EXHIBIT C

                         to Office Lease by and between

                     F/P/D Master Lease, Inc., as Landlord,

                                       and

                   Service Asset Management Company, as Tenant

                          PROJECT RULES AND REGULATIONS

1.       No birds, animals, reptiles, or any other creatures may be brought into
         or about the Project except to assist disabled persons.

2.       Nothing may be swept or thrown into the corridors, halls, elevator
         shafts, or stairways.

3.       Tenant may not make or permit any improper noises in the Building,
         create a nuisance, or do or permit anything which, in Landlord's sole
         judgment, interferes in any way with other tenants or persons having
         business with them.

4.       No equipment of any kind may be operated on the Leased Premises that
         could in any way annoy any other tenant in the Building,

5.       Tenant shall cooperate with Building employees in keeping the Leased
         Premises neat and clean.

6.       Corridor doors, when not in use, must be kept closed.

7.       No bicycles or similar vehicles are allowed in the Building.

8.       Tenant shall refer all contractors, contractor's representatives, and
         installation technicians rendering any service on or to the Leased
         Premises for Tenant to Landlord for Landlord's approval and supervision
         for performance of any contractual service. This provision applies to
         all work performed in the Building, including installation of
         telephones, telephone equipment, electrical devices, and attachments
         and installations of any nature affecting floors, walls, woodwork,
         trim, windows, ceiling, equipment, or any other physical portion of the
         Building.

9.       No nails, hooks, or screws may be driven into or inserted in any part
         of the Building except by Building maintenance personnel.

                                      C-1

<PAGE>   102

10.      Sidewalks, doorways, vestibules, halls, stairways, and similar areas
         may not be obstructed by any Tenant Party, or used for any purpose
         other than ingress and egress to and from the Leased Premises, or for
         going from one part of the Building to another part of the Building. No
         furniture may be placed in front of the Building or in any lobby or
         corridor without prior consent of Landlord.

11.      Any Tenant Party who desires to enter the Building after Building
         Standard Hours, is required to sign in upon entry and sign out upon
         leaving, giving the location during their stay and their time of
         arrival and departure.

12.      All deliveries must be made via the service entrance and service
         elevator during Building Standard Hours or at other times as Landlord
         may determine. Prior approval must be obtained from the Landlord for
         all deliveries that are received after Building Standard Hours.

13.      Landlord or its agents or employees may enter the Leased Premises at
         reasonable times and upon reasonable notice (except no notice shall be
         required in the event of an emergency) to examine the same or to make
         repairs, alterations, or additions as Landlord deems necessary for the
         safety, preservation, or improvement of the Building.

14.      Landlord may require all Tenant Parties to evacuate the Building in the
         event of an emergency or catastrophe.

15.      Tenant may not do anything, or permit anything to be done, in or about
         the Building, or bring or keep anything in the Building that in any way
         increases the possibility of fire or other casualty, or do anything in
         conflict with the valid laws, rules, or regulations of any governmental
         authority.

16.      Tenant shall notify the Building Manager when safes or other equipment
         are to be taken into or out of the Building. Moving of those items must
         be done under the supervision of the Building Manager, after receiving
         approval from Landlord.

17.      Landlord may prescribe the weight and position of safes and other heavy
         equipment that may over stress any portion of the floor. All damage
         done to the Building by the improper placing of heavy items that over
         stress the floor will be repaired at the sole expense of the Tenant.

18.      No food may be distributed from Tenant's office without the prior
         approval of the Building Manager.

19.      No additional locks may be placed on any doors without the prior
         consent of Landlord. All necessary keys must be furnished by Landlord
         and must be surrendered to Landlord upon termination of this Lease.
         Tenant shall then give Landlord the combination for all locks on the
         doors and vaults.

                                      C-2
<PAGE>   103

20.      Tenant shall comply with parking rules and regulations as may be posted
         and distributed from time to time.

21.      Plumbing and appliances may be used only for the purposes for which
         constructed. No sweeping, rubbish, rags, or other unsuitable material
         may be thrown or placed therein. Any stoppage or damage resulting to
         any fixtures or appliances from misuse by any Tenant Party is payable
         by Tenant.

22.      No signs, posters, advertisements, or notices may be painted or affixed
         on any windows, doors, or other parts of the Building, except in
         colors, sizes, and styles, and in places, approved in advance by
         Landlord. Landlord has no obligation or duty to give this approval.
         Building standard suite identification signs will be prepared by a sign
         writer approved by Landlord. The cost of the Building standard signs is
         payable by Tenant. Landlord may remove all unapproved signs without
         notice to Tenant, at the expense of Tenant. Directories will be placed
         by Landlord, at Landlord's expense, in conspicuous places in the
         Building. No other directories are permitted.

23.      No portion of the Building may be used as lodging rooms or for any
         immoral or unlawful purposes.

24.      Tenant may not operate, or allow the operation of any coin or token
         operated vending machine or similar device for the sale of any goods,
         wares, merchandise, food, beverages, or services, including but not
         limited to pay lockers, pay toilets, scales, amusement devices and
         machines for the sale of beverages, foods, candy, cigarettes or other
         commodities, without the prior consent of Landlord.

25.      Tenant must obtain Landlord's prior approval, which is at Landlord's
         sole discretion, for installation of any solar screen material, window
         shades, blinds, drapes, awnings, window ventilators, or other similar
         equipment and any window treatment of any kind whatsoever. Landlord may
         control all internal lighting that is visible from the exterior of the
         Building and may change any unapproved lighting without notice to
         Tenant, at Tenant's expense.

26.      Landlord may rescind any of these Rules and Regulations and make other
         future Rules and Regulations as in the judgment of Landlord are from
         time to time needed for the safety, protection, care, and cleanliness
         of the Building, the operation thereof, the preservation of good order
         therein, and the protection and comfort of its tenants, their agents,
         employees, and invitees. Those rules, when made and notice thereof
         given to a tenant, are binding upon the Tenant in the same manner as
         the original rules.

27.      Tenant shall not permit any Tenant Party to hold, carry, smoke, or
         dispose of a lighted cigar, cigarette, pipe, or any other lighted
         smoking equipment in any common area of the Buildings. The common areas
         includes, but are not limited to, all rest rooms, common corridors,
         stairwells, elevator lobbies, first floor lobbies, and other areas used
         in common

                                       C-3

<PAGE>   104

         with other tenants and occupants of the Buildings. In addition, the
         Building shall be a nonsmoking building, with no smoking in the Leased
         Premises or in any other area of the Building, including the exterior
         portions thereof, provided that Landlord may provide for a smoking
         area, in which case Tenant shall ensure that its employees smoke only
         in such smoking area.

28.      No provision in the Lease or these Rules and Regulations should be
         construed in any manner as permitting, consenting to or authorizing
         Tenant to violate requirements under the Access Laws, and any provision
         of the Lease or these Rules and Regulations which could be construed as
         authorizing a violation of the Access Laws shall be interpreted in a
         manner which permits compliance with the Access Laws and the Lease and
         these Rules and Regulations are deemed to permit such compliance.

29.      The carrying of firearms of any kind in any leased premises, the
         building in which such premises are situated, any related garage, or
         any related complex of buildings of which the foregoing are a part, or
         any sidewalks, drives, or other common areas related to any of the
         foregoing, is prohibited except in the case of unconcealed firearms
         carried by licensed security personnel hired or contracted for by
         tenants for security of their premises as permitted by such tenants'
         leases or otherwise consented to by Landlord in writing.

                                       C-4

<PAGE>   105

                                    EXHIBIT D

                         to Office Lease by and between

                     F/P/D Master Lease, Inc., as Landlord,

                                       and

                   Service Asset Management Company, as Tenant

                        CONTRACTOR INSURANCE REQUIREMENTS

All contractors, subcontractors, suppliers, service providers, moving companies,
and others performing work of any type for Tenant in the Project shall:

         o        carry the insurance listed below with companies acceptable to
                  Landlord; and

         o        furnish Certificates of Insurance to Landlord evidencing
                  required coverages at least 10 days prior to entry in the
                  Project and annually thereafter.

Certificates of Insurance must provide for 30 days' prior written notice of
cancellation, non-renewal or material reduction in coverage to Landlord, c/o
Faison-Stone, Inc. (Manager), 1700 Pacific Avenue, Suite 4500, Dallas, Texas
75201, Attention: Property Manager.

1.       WORKERS COMPENSATION: Statutory coverage in compliance with Workers
         Compensation Laws of the state in which the Project is located.

2.       EMPLOYERS' LIABILITY: With the following minimum limits of liability:

                     $100,000      Each Accident
                     $500,000      Disease-Policy Limit
                     $100,000      Disease-Each Employee

3.       COMMERCIAL GENERAL LIABILITY: (1986 ISO Form or its equivalent): This
         Insurance must provide contractual liability and a general aggregate
         limit on a per location or per project basis. The minimum limits must
         be $2,000,000 general aggregate and $1,000,000 per occurrence.

4.       AUTOMOBILE LIABILITY: Insurance for claims arising out of ownership,
         maintenance, or use of owned, non-owned, and hired motor vehicles at,
         upon, or away from the Project with the following minimum limits:

                                      D-1

<PAGE>   106

                $1,000,000     Each Accident Single Limit Bodily Injury and
Property Damage combined

5.       UMBRELLA: At least Following Form liability insurance, in excess of the
         Commercial General Liability, Employers Liability, and Automobile
         Insurance above, with the following minimum limits:

                $3,000,000     Each Occurrence
                $3,000,000     Aggregate - Where Applicable

6.       GENERAL REQUIREMENTS: All policies must be:

         o      written on an occurrence basis and not on a claims-made basis;

         o      except for the workers compensation insurance, endorsed to name
                as additional insureds Landlord, Landlord's property manager,
                Landlord's mortgagees, any ground, primary, or master lessor,
                and their respective officers, directors, employees, agents,
                partners, and assigns; and

         o      endorsed to waive any rights of subrogation against Landlord,
                Landlord's property manager, Landlord's mortgagees, any ground,
                primary, or master lessor, and their respective officers,
                directors, employees, agents, partners, and assigns.

                                       D-2

<PAGE>   107

                                    EXHIBIT E

                         to Office Lease by and between

                     F/P/D Master Lease, Inc., as Landlord,

                                       and

                   Service Asset Management Company, as Tenant

                              ESTOPPEL CERTIFICATE

_________________, 19____

_________________________

_________________________

_________________________

_________________________

_________________________

_________________________

_________________________

_________________________

Re:      Office Lease dated ____________199__, between F/P/D) Master Lease, Inc.
         ("Landlord"), a New York corporation, and
         ________________________________________ ("Tenant"), a
         _____________________________ (as amended, the "Lease")
         1700 Pacific Avenue, Dallas, Texas (the "Project")

Dear___________________:

Tenant understands that _______________ ("Purchaser") is purchasing the Project
from Landlord and Purchaser and Landlord are relying on this Estoppel
Certificate.

For $10 and other good and valuable consideration, the receipt and sufficiency
of which are acknowledged, Tenant ratifies the Lease and certifies to Purchaser
and Landlord that:

1.       Tenant is occupying and conducting business in the Leased Premises.

2.       The Minimum Rent under the Lease is $ _____________ per month payable
         in advance on the first day of each calendar month. Minimum Rent is
         paid through ____________ 1, 19

                                      E-1

<PAGE>   108

3.       The Lease is in full force and effect and Tenant has not assigned or
         subleased its interest in the Lease except as specified on Schedule A
         attached to this Estoppel Certificate.

4.       A true and correct copy of the Lease and all amendments thereto is
         attached as Schedule B to this Estoppel Certificate.

5.       The Lease is the entire agreement between Landlord and Tenant
         concerning the Leased Premises.

6.       The Lease Term expires on _____________, 19__.

7.       Landlord has satisfied all of its obligations regarding the
         installation of leasehold improvements.

8.       To the best knowledge of Tenant, after due inquiry, no Event of Default
         by Tenant or default by Landlord has occurred under the Lease and is
         continuing and no act or omission has occurred that with the giving of
         notice or passage of time or both would constitute an Event of Default
         by Tenant except as specified on Schedule A.

9.       Tenant is not entitled to any abatements, setoffs, or deductions from
         Rent under the Lease except as specified in Schedule A.

10.      No Rent has been paid more than one month in advance.

11.      The Security Deposit is $_________________

Defined terms in the Lease have the same meanings in this Estoppel Certificate.

                                                                         a
                                ---------------------------------------,

                                By:
                                   ------------------------------------

                                Name:
                                     ----------------------------------

                                Title:
                                      ---------------------------------

                                      E-2

<PAGE>   109

                                   SCHEDULE A

1.       List any assignments or subleases or state NONE:

2.       List any Events of Default by Tenant that have occurred and are
         continuing or any acts or omissions that have occurred that with the
         giving of notice or passage of time or both would constitute an Event
         of Default by Tenant or state NONE:

3.       List any Events of Default by Landlord that have occurred and are
         continuing or any acts or omissions that have occurred that with the
         giving of notice or passage of time or both would constitute an Event
         of Default by Landlord or state NONE:

4.       List any abatements, setoffs, or deductions from Rent to which Tenant
         is entitled at this time or state NONE:

                                       E-3

<PAGE>   110

                                   SCHEDULE B

                  COVER PAGE FOR COPIES OF LEASE AND AMENDMENTS

                                      E-4

<PAGE>   111

                                    EXHIBIT F

                         to Office Lease by and between

                     F/P/D Master Lease, Inc., as Landlord,

                                       and

                   Service Asset Management Company, as Tenant

                           TENANT FINISH CONSTRUCTION

1.       PLANS AND SPECIFICATIONS: Tenant and Landlord have approved complete
         plans and specifications (the CONSTRUCTION DOCUMENTS) for the
         construction of the tenant finish in the Leased Premises. Tenant shall
         pay the cost of the Construction Documents, provided that the Work
         Allowance, defined below, may be applied to the cost of the
         Construction Documents.

         All work to be performed by Landlord pursuant to the Construction
         Documents is referred to as the TENANT FINISH WORK. Landlord shall not
         be deemed to represent and warrant that the Construction Documents
         comply with Applicable Laws and Tenant, at its sole cost and expense,
         is responsible for the Construction Documents and Tenant's business
         operations at the Leased Premises complying with Access Laws.

2.       TENANT FINISH WORK. Landlord shall construct or cause to be constructed
         the Tenant Finish Work in substantial accordance with the Construction
         Documents, subject to the Building Service Fee and Administrative Fee
         specified below. Tenant shall pay the Actual Cost (defined below) of
         all Tenant Finish Work in excess of $629,560 (the WORK ALLOWANCE). The
         Work Allowance may be applied to the cost of preparing the Construction
         Documents, relocation, installation of cabling, and space planning. The
         contractor Landlord selects to perform the Tenant Finish Work shall be
         selected by Landlord from at least three (3) qualified contractors who
         bid for such Tenant Finish Work. If the Actual Cost exceeds the Work
         Allowance, then Landlord agrees to pay up to $5.00 per rentable square
         foot contained in the Leased Premises, which additional sums shall be
         repaid by Tenant to Landlord by Minimum Rent being increased by an
         amount sufficient to fully amortize and pay such additional allowance
         together with interest at the rate of 10% per annum over the first 5
         years of the Lease Term.

                                      F-1

<PAGE>   112

         The term ACTUAL COST means the cost of all labor and materials and all
         hard and soft costs, together with the Building Service Fee of 2.5% of
         all hard costs, incurred by Landlord in performing the Tenant Finish
         Work or the Additional Work (defined below), as applicable.

         If prior to commencement of the Tenant Finish Work Landlord
         determines, based on construction bids received by Landlord, that the
         Actual Cost of the Tenant Finish Work will exceed the Work Allowance,
         Tenant shall pay the excess to Landlord. Landlord is not obligated to
         commence the Tenant Finish Work until it receives the excess payment
         from Tenant.

         If during construction the Actual Cost of the Tenant Finish Work
         exceeds the Work Allowance and all amounts previously paid by Tenant to
         Landlord prior to the commencement of construction, Landlord shall
         submit interim statements covering any excess costs incurred by
         Landlord under this Paragraph and Tenant shall pay the amount of the
         excess costs to Landlord.

         If the Actual Cost of the Tenant Finish Work is less than the Work
         Allowance (not increased by the $5.00 per rentable square foot
         additional allowance discussed above), such excess, not to exceed $2.00
         per rentable square foot, shall be credited against the first accruing
         Minimum Rent hereunder.

3.       ADDITIONAL WORK. If Landlord performs, at Tenant's request and upon
         submission by Tenant and approval by Landlord of necessary plans and
         specifications (as approved, the ADDITIONAL WORK PLANS), any work over
         and above the Tenant Finish Work (ADDITIONAL WORK), including any
         Additional Work approved by change order or work order, the Additional
         Work is at Tenant's expense, to which of any remaining balance of the
         Work Allowance may be applied. Landlord is not obligated to perform any
         Additional Work until Tenant pays Landlord the Actual Cost of the
         Additional Work, as estimated by Landlord. If the Actual Cost of the
         Additional Work exceeds the estimated amount paid by Tenant, Tenant
         shall pay the excess to Landlord.

         The Additional Work is not part of the Tenant Finish Work. If Landlord
         agrees to perform any Additional Work, Landlord shall request that its
         contractor estimate the additional amount of time that will be added to
         the completion of the Tenant Finish Work because of the Additional Work
         (the ADDITIONAL WORK PERIOD). This estimate is conclusive and binding
         on Landlord and Tenant for the purpose of establishing the Ready for
         Occupancy Date.

4.       DELAYS: If Landlord is delayed in substantially completing the Tenant
         Finish Work or any Additional Work as a result of:

         (a)      Tenant's failure to promptly and timely furnish any
                  information required by Landlord;

                                      F-2

<PAGE>   113

         (b)      Tenant's delay in approving the Construction Documents or in
                  submitting any Additional Work Plans or in modifying the
                  Additional Work Plans as required by Landlord;

         (c)      Tenant's request for materials, finishes, or installations
                  other than Landlord's Building standard items or for long lead
                  items;

         (d)      Tenant's changes in the Construction Documents or any
                  Additional Work Plans;

         (e)      interference with Landlord's work by any Tenant Party; or

         (f)      Tenant does not timely obtain the approval, if required, of
                  the Texas Department of Licensing and Regulation;

         then the Ready for Occupancy Date is accelerated by the number of days
         of Tenant delays.

5.       EARLY ENTRY: Upon request by Tenant, Landlord shall permit Tenant and
         its contractors to enter the Leased Premises prior to the Ready for
         Occupancy Date, in order that Tenant may perform through its own
         contractor(s) (who must be approved by Landlord) other work and
         decorations Tenant wants in the Leased Premises while Landlord's
         contractors are working. This license to enter prior to the Ready for
         Occupancy Date is subject to the following conditions:

         (a)      Tenant's contractor(s) must work in harmony and not interfere
                  with Landlord's contractors and subcontractors; and

         (b)      Prior to commencement of the work by Tenant's contractor(s),
                  Tenant must deliver evidence to Landlord of compliance with
                  the requirements of Exhibit D.

         Landlord may revoke this license upon 48 hours' notice to Tenant if the
         entry causes disharmony or interference with the Tenant Finish Work or
         any Additional Work.

         Landlord Is not liable in any way for any injury, loss, or damage that
         occurs to any of Tenant's decorations or installations made prior to
         the Ready for Occupancy Date, the entry being solely at Tenant's risk.
         Tenant shall indemnify, defend, and hold Landlord harmless from any
         claims, demands, actions, losses, and damages arising from activities
         of Tenant's contractors, workers, and mechanics.

6.       PROJECT ENGINEER: Tenant must use the fire alarm, mechanical,
         electrical, and plumbing engineer(s) of record for the Project in
         connection with any Tenant Finish Work or Additional Work affecting the
         Building's fire alarm, mechanical, electrical, or plumbing systems.
         Landlord shall designate from time to time (i) the mechanical,
         electrical and

                                      F-3

<PAGE>   114

         plumbing engineer of record for the Project, and (ii) the fire alarm
         contractor of record for the Project.

7.       PAYMENTS BY TENANT: All amounts payable by Tenant under this Exhibit F
         are payable to Landlord as additional Rent within 10 days after
         Tenant's receipt of Landlord's demand.

8.       STANDARD IMPROVEMENTS; TENANT IMPROVEMENTS: For purposes of allocating
         repair and obligations, the Standard Improvements are those
         improvements located in the Leased Premises as of the date of this
         Lease (and all other improvements in and to the Leased Premises are
         Tenant Improvements).

                                      F-4

<PAGE>   115

                                    EXHIBIT G

                         to Office Lease by and between

                     F/P/D Master Lease, Inc., as Landlord,

                                       and

                   Service Asset Management Company, as Tenant

                            JANITORIAL SPECIFICATIONS

                                      G-1
<PAGE>   116

                   DETAILED SPECIFICATIONS - NIGHTLY CLEANING

GENERAL OFFICE AREAS

1. Vacuum carpet areas that can be reasonably vacuumed including the moving of
light furniture and chairs to accomplish this task.

2. Detailed carpet spotting in areas as they appear.

3. Dust mop and spot clean spillage stains and marks nightly from hardwood
floor surfaces. Wet mop and spray buff to restore floor finish weekly.

4. Empty waste paper baskets, special canisters and/or receptacles into
collection units and disposed from the Project nightly. Wastebaskets and trash
containers will be wiped clean and washed as needed.

5. Thorough dusting of horizontal surfaces, with treated dust cloths. Areas to
be dusted nightly include but are not limited to: desks, chairs, tables,
cabinets, credenzas, shelves, low ledges, window sills, coat racks, picture
frames, signs, and wall panel sections.

6. Remove finger prints, marks and stains from doors and frames nightly
utilizing the specified materials and cloths. Wipe down, clean and polish
quarterly utilizing the specified materials and cloths.

7. Furniture cleaning utilizing the specified furniture polish and cleaning
products of all desks, credenzas, cabinets, tables and office furniture, as
required.

8. Dust and clean horizontal surfaces, utilizing the specified treated cloths
and materials. Remove spills, stains and rings.

9. Dust arms, backs and leg rungs of sofas and chairs, utilizing the specified
materials and cloths. Detail vacuum utilizing the specified back pack vacuum
cleaner with furniture attachments, as required.

10. Clean and dust vertical surfaces utilizing the specified treated cloths, as
required.

11. Spot clean finger prints, stains and surface dust from glass doors,
sidelights and partitions.

12. Spot clean marks, stains and fingerprints from vinyl wall surfaces,
utilizing the specified materials and cloths.

13. Spot clean marks and fingerprints, on light switches and cover plates.

14. Drinking fountains shall be cleaned, sanitized and polished utilizing the
specified cleaning materials and cloths on a nightly basis. Metal finishes will
be restored to a sparkling clean and sanitary condition.

RESTROOMS

1. Finger prints, marks and stains will be removed from doors and frames,
utilizing the specified materials and cloths.

2. Wipe down, clean and polish doors and frames, utilizing the specified
materials and cloths.

3. Sweep and wet mop nightly tile floor utilizing the specified cleaning
materials. Machine scrub monthly utilizing specified cleaning material.

4. Wipe down stains and finger prints from wall tile nightly utilizing the
specified materials and cloths. Completely wash and wipe down all tile wall
surfaces monthly utilizing the specified materials and cloths.

                                       1

<PAGE>   117

5. Wipe down stains and finger prints from vinyl wall surfaces nightly
utilizing the specified materials and cloths. Completely wash and wipe down all
vinyl wall surfaces monthly utilizing the specified materials and cloths.

6. Refill hand towel dispensers with specified paper products as needed and
completely wash and wipe down to a sanitary condition.

7. Refill toilet paper dispensers with specified paper products as needed.

8. Refill soap dispenser with specified product as needed.

9. Trash containers, special canisters and/or receptacles will be emptied
nightly with trash container liner changed nightly. Trash container will be
wiped clean and washed nightly.

10. Wash and wipe down sinks, countertops and faucets nightly to a sanitary
condition utilizing the specified materials and cloths.

11. Wash and wipe down toilets and urinals nightly utilizing the specified
equipment and materials.

12. Wash and wipe down flush valves and chrome piping nightly to a sanitary
condition, utilizing the specified materials and cloths. Restore chrome finishes
to a sparkling clean condition.

13. Remove spots, water marks and fingerprints nightly utilizing the specified
materials and cloths, as needed. Wash and wipe all mirror finishes weekly
utilizing the specified materials and cloths.

14. Remove spots, water marks, stains, dust on horizontal surfaces and finger
prints utilizing the specified materials and cloths, as needed. Completely wash
and wipe all partitions weekly surfaces utilizing the specified materials and
cloths. Restore surface to a sanitary and sparkling clean condition.

ELEVATORS - (PASSENGER, FREIGHT, AND GARAGE CARS)

1. Wipe down wood wall surfaces utilizing the specified materials and cloths.

2. Wipe down elevator doors and frames nightly with treated cloth as specified.
Remove finger prints, smudge marks, stains and grease.

3. Clean light lenses nightly utilizing the specified treated cloths.

4. Wash and wipe down mirror finishes nightly utilizing the specified materials
and cloths. Restore to a sparkling clean condition.

5. Clean and wipe down metal finishes nightly utilizing specified materials and
cloths to remove finger prints, smudge marks and grease.

6. Clean and wipe down metal flooring nightly. Detail clean utilizing specified
cleaning materials, products and equipment, as required.

7. Vacuum carpet utilizing the specified commercial upright vacuum cleaner.

8. Vacuum elevator door tracks removing all debris. Thoroughly polish metal
finish utilizing specified materials and cloths, as required.

FIRE STAIRWELLS (AS REQUIRED)

                                        2

<PAGE>   118

1. Completely wipe down handrails utilizing the specified materials and cloths.

2. Sweep and wet mop risers utilizing specified materials and equipment. All
floor surfaces shall be slip resistant at all times.

3. Sweep and wet mop landings utilizing specified materials and equipment. All
floor surfaces shall be slip resistant at all times. Completely strip existing
concrete floor finish and reseal utilizing the specified materials. All floor
surfaces shall be slip resistant at all times.

4. Wipe down sprinkler riser pipes utilizing the specified treated cloths, areas
that are below six feet in height. Contractor to use caution while cleaning any
related equipment valves and fire sprinkler system devices.

5. Clean light lenses utilizing the specified treated cloths.

BUILDING ENTRANCES

1. Spot clean from glass doors, sidelights, and partitions nightly finger
prints, stains and surface dust. Detail clean quarterly utilizing the specified
glass and window cleaning equipment and materials.

2. Remove finger prints, marks and stains from doors and frames nightly. Wipe
down, clean and polish quarterly.

3. Completely clean and wipe down metal finishes nightly utilizing specified
materials and cloths to remove finger prints, smudge marks and grease.

4. Vacuum carpet including areas that can be reasonably vacuumed including the
moving of light furniture and chairs to accomplish this task.

5. Detailed carpet spotting in areas as they appear.

MAIN LOBBIES

1. Vacuum carpet cleaning utilizing the specified commercial upright vacuum
cleaner. Includes all areas that can be reasonably vacuumed including the moving
of light furniture and chairs to accomplish this task.

2. Detail carpet spotting in areas as they appear.

3. Dust mop and then wet mop all hard floor surfaces utilizing specified
cleaning materials, products and equipment. Wet mop and then spray buff weekly
to restore floor finish utilizing specified cleaning materials, products and
equipment. Detail and thoroughly clean monthly utilizing specified cleaning
materials, products and equipment.

4. Empty waste paper baskets, special canisters and/or receptacles into
collection units and dispose from the Project nightly. Waste paper baskets and
containers will be wiped clean and washed nightly.

5. Dusting of horizontal surfaces nightly with treated dust cloths.

6. Remove finger prints, marks and stains from doors and frames nightly
utilizing the specified materials and cloths.

                                       3
<PAGE>   119
                               FIRST AMENDMENT TO
                                  OFFICE LEASE

THIS FIRST AMENDMENT TO OFFICE LEASE (this "Amendment") is made as of this 16th
day of July, 1998, ("Effective Date") by and between F/P/D MASTER LEASE, INC., a
Texas corporation ("Landlord"), and SERVICE ASSET MANAGEMENT COMPANY, INC., a
North Carolina corporation ("Tenant").

                                   WITNESSETH:

WHEREAS, Landlord and Tenant entered into that certain Office Lease dated
April_____, 1998 (the "Lease"), with respect to the lease of approximately
31,478 Rentable Square Feet (as defined in the Lease) on the 14th and 15th
floors known as Suites 1400 and 1500 (the "Premises") of that certain office
building known as 1700 Pacific Avenue, and located at 1700 Pacific Avenue,
Dallas, Texas (the "Building");

WHEREAS, Landlord and Tenant now desire to amend the Lease to modify certain
provisions of the Lease as set forth herein but not otherwise.

NOW, THEREFORE, for and in consideration of Ten and No/100 Dollars ($10.00) and
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged and confessed, Landlord and Tenant, intending to be and
being legally bound, do hereby agree as follows:

1. DEFINED TERMS

All capitalized terms used herein and not defined herein have the meanings set
forth in the Lease.

2. PARKING

Commencing on the Effective Date and continuing through and until the last day
of the Lease Term, as extended if applicable, (in addition to and not in lieu of
the Parking provided for in Section 53 of the Lease), Landlord shall provide two
(2) additional spaces in the On-Site Garage, which two (2) spaces shall be
unreserved spaces, (the "Additional Spaces") and issue to Tenant one parking
access card for each parking space. The Additional Spaces shall be added to and
become a part of the unreserved parking spaces in the On-site Garage to which
Tenant is entitled and shall be leased by Tenant on the same terms and
conditions, including parking charges, set forth in Section 53 of the Lease.

3. FULL FORCE AND EFFECT

In the event any of the terms of the Lease conflict with the terms of this
Amendment, the terms of this Amendment shall control. Except as amended hereby,
all terms and conditions of the Lease shall remain in full force and effect, and
Landlord and Tenant hereby ratify and confirm the Lease.

<PAGE>   120

                        SECOND AMENDMENT TO OFFICE LEASE

         THIS SECOND AMENDMENT TO OFFICE LEASE (this "Amendment") is made and
entered into this 17th day of February, 1999 (the "Amendment Effective Date"),
by and between F/P/D MASTER LEASE, INC., a Texas corporation ("Landlord"), and
SERVICE ASSET MANAGEMENT COMPANY, a North Carolina corporation ("Tenant").

                                   WITNESSETH:

         WHEREAS, Landlord and Tenant entered into that certain Lease Agreement
dated as of May 20th, 1998, as amended by the First Amendment to Office Lease,
dated as of July 16th, 1998 (the "Lease"), with respect to the lease of
approximately 31,478 Rentable Square Feet ("Leased Premises") in the building
commonly referred to as 1700 Pacific Avenue located in Dallas, Texas (the
"Building"); and

         WHEREAS, Landlord and Tenant mutually desire to amend the Lease to
expand the Leased Premises and to modify certain other provisions of the Lease
as set forth herein but not otherwise.

         NOW THEREFORE, for and in consideration of Ten Dollars and other good
and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged and confessed, Landlord and Tenant, intending to be and being
legally bound, do hereby agree as follows:

1.       Defined Terms.

         (a) The "Expansion Date" shall be the earliest to occur of (i) March 1,
1999, (ii) the date Tenant occupies any part of the Expansion Space, or (iii)
the Expansion Space Ready for Occupancy Date (defined below).

         (b) The "Expansion Space Ready for Occupancy Date" is the earlier to
occur of:

            (1) the date that Landlord notifies Tenant that the City of Dallas
                has approved the Expansion Space for occupancy; or

            (2) the date the City of Dallas would have approved the Expansion
                Space for occupancy but for delays caused by any Tenant Party;

                                      -1-

<PAGE>   121
                  provided, if landlord performs any Additional Work (defined in
                  Exhibit B), the Expansion Space Ready for Occupancy Date is
                  deemed accelerated by the number of days in the Additional
                  Work Period (defined in Exhibit B).

         (c) All other capitalized terms utilized herein and not defined herein
shall have the meaning ascribed thereto in the Lease.

2. Expansion of Leased Premises.

         Commencing on the Expansion Date, the Leased Premises shall be expanded
from the existing 31,478 Rentable Square Feet (the "Existing Space") to include
an additional 3,198 Rentable Square Feet on Floor 15 of the Building (the
Expansion Space") as shown on Exhibit A attached hereto and made a part hereof,
such that the total rentable square footage of the Leased Premises as of the
Expansion Date shall be 34,676 Rentable Square Feet. The Expansion Space shall
be added to and become part of the Leased Premises for all purposes of the Lease
and shall be subject to all of the provisions of the Lease as amended hereby,
applicable to the Leased Premises, including, without limitation, Tenant's
obligation to pay Rent.

3. Term of Expansion Space.

         The term of the Expansion Space shall commence on the Expansion Date
and shall expire on the Expiration Date.

4. Parking.

         Commencing on the Expansion Date, Landlord shall provide to Tenant,
and Tenant shall accept and lease for the remainder of the Lease Term, as it
may be extended, three (3) additional unreserved spaces in the Off-Site Garage
(for a total of thirty (30) unreserved spaces in the Off-Site Garage) on the
same terms and conditions as set forth in Section 53 of the Lease. Such
additional three (3) spaces shall not be considered Temporary Spaces.

5. Tenant Improvements.

         (a) Landlord and Tenant each shall comply with the provisions of
Exhibit B attached hereto. Tenant agrees to cooperate with Landlord in
Landlord's construction of the Tenant Finish Work, and Tenant shall not take
any action which would impede or hinder Landlord's construction of the Tenant
Finish Work. Tenant hereby grants to Landlord access to the Existing Space
commencing on the date thereof, for the purpose of the construction of the
Tenant Finish Work and performing the obligations of Landlord set forth in
Exhibit B. Tenant acknowledges that (i) the construction of the Tenant Finish
Work may affect Tenant's business, (ii) Landlord shall not be responsible for
any effect such construction may have on Tenant's business, and (iii) any such

                                      -2-
<PAGE>   122
disturbance or effect in (i) or (ii) shall not constitute a default by Landlord
under the Lease as amended hereby.

     (b) THE EXPANSION SPACE SHALL BE FURNISHED TO TENANT AT THE EXPANSION DATE
IN AN AS-IS CONDITION AND LANDLORD SHALL NOT BE OBLIGATED TO MAKE ANY
IMPROVEMENTS THERETO EXCEPT AS MAY BE PROVIDED IN EXHIBIT B, NOR SHALL TENANT BE
ENTITLED TO ANY ALLOWANCE WITH RESPECT THERETO. ADDITIONALLY, LANDLORD MAKES NO
WARRANTIES, EXPRESS OR IMPLIED, WITH RESPECT TO THE LEASEHOLD IMPROVEMENTS IN
THE EXISTING SPACE OR THE EXPANSION SPACE. ALL IMPLIED WARRANTIES WITH RESPECT
THERETO, INCLUDING BUT NOT LIMITED TO THOSE OF MERCHANTABILITY AND FITNESS FOR A
PARTICULAR PURPOSE, ARE EXPRESSLY NEGATED AND WAIVED.

6.       Minimum Rent for Expansion Space

         (a) Commencing on the Expansion Date and continuing through and until
the Expiration Date, Tenant's Minimum Rent for the Expansion Space shall be an
annual amount equal to the sum of the product of (x) the annual Minimum Rental
Rate identified below for the applicable period identified therein multiplied
by (y) the Rentable Square Feet of the Expansion Space.

<TABLE>
<CAPTION>
Period                                                         Minimum Rental Rate
------                                                         -------------------
<S>                                                            <C>
Expansion Date through the expiration of the
thirtieth (30th) month of the Lease Term                             $  16.00

The commencement of the thirty-first (31st)
month of the Lease Term through the
expiration of the fifty-fourth (54th) month of
the Lease Term                                                       $  17.00

The commencement of the fifty-fifth (55th)
month of the Lease Term through the
expiration of the seventh-eight (78th) month
of the Lease Term                                                    $  18.00
</TABLE>

                                      -3-
<PAGE>   123

The commencement of the seventy-ninth (79th)                   $19.00
month of the Lease Term through the expiration of the
one hundred second (102nd) month of the Lease Term

The commencement of the one hundred third (103rd)              $21.00
month of the Lease Term through the expiration of the
one hundred twenty-sixth (126th) month of the Lease
Term

         All such Minimum Rent shall be payable in accordance with the
provisions set forth in the Lease.

7.       Tenant's Proportionate Share.

         Effective as of the Effective Date, Tenant's Proportionate Share shall
be 2.587% (in lieu of the 2.348% share set forth in Section 1 of the Lease) and
determined by dividing the number of Rentable Square Feet of the Leased Premises
(as expanded) by the Total Building Area. Tenant's Proportionate Share as
recalculated shall be paid in accordance with the provisions set forth in the
Lease. The Base Year for the purpose of calculating the Operating Costs shall
remain the calendar 1998 and shall be applicable to both the Expansion Space and
the Existing Space.

8.       Brokerage Commission.

         Landlord and Tenant hereby represent and warrant to each other that no
commission is due and payable to any broker or other leasing agent in connection
with this Amendment as a result of its own dealings with any such broker or
leasing agent except Trinity Advisory Group, Inc. ("Broker"), and Landlord and
Tenant hereby agree to indemnify and hold each other harmless from and against
all loss, damage, cost and expense (including reasonable attorneys' fees)
suffered by the other party as a result of a breach of the foregoing
representation and warranty.

         Landlord has agreed to pay Broker a commission pursuant to a separate
agreement between Broker and Landlord.

9.       Acceptance of Leased Premises.

         Tenant's occupancy of the Expansion Space is conclusive evidence that
Tenant: (A) accepts the Expansion Space as suitable for the purposes for which
they are leased; (B) accepts the Expansion Space as being in a good and
satisfactory condition; and (C) waives any defects in the Expansion Space.

                                       -4-

<PAGE>   124

10.      Full Force and Effect.

In the event any of the terms of the Lease conflict with the terms of this
Amendment, the terms of this Amendment shall control. The Lease remains in full
force and effect without any further amendments, alterations, or modifications
thereto except as set forth herein, and Landlord and Tenant expressly ratify and
confirm the Lease as amended hereby. The Lease, as amended by this Amendment,
constitutes the entire agreement between the parties hereto and no further
modification of the Lease shall be binding unless evidenced by an agreement in
writing signed by Landlord and Tenant.

         EXECUTED the day and year first above written.

                                          LANDLORD:

                                          F/P/D MASTER LEASE, INC.,
                                          a Texas corporation

                                          By: /s/ JOHN B.DETWILER
                                             --------------------------
                                          Name: John B. Detwiler
                                               ------------------------
                                          Title: Asst VP
                                                -----------------------

                                          TENANT:

                                          SERVICE ASSET MANAGEMENT COMPANY,
                                          a North Carolina corporation

                                          By: /s/ ROGER J. EAGEMOEN, JR
                                             --------------------------
                                          Name: Roger J. Eagemoen, Jr
                                               ------------------------
                                          Title: President
                                                -----------------------

                                      -5-
<PAGE>   125

                         THIRD AMENDMENT TO OFFICE LEASE

                  THIS THIRD AMENDMENT TO OFFICE LEASE (this "Amendment") is
made and entered into this 30th day of September, 1999, but to be effective as
of February 17, 1999 (the "Amendment Effective Date"), by and between F/P/D
MASTER LEASE, INC., a Texas corporation "(Landlord"), and SERVICE ASSET
MANAGEMENT COMPANY, a North Carolina corporation ("Tenant").

                                   WITNESSETH:

                  WHEREAS, Landlord and Tenant entered into that certain Lease
Agreement (the "Original Lease") dated as of May 20, 1998, with respect to the
lease of approximately 31,478 Rentable Square Feet ("Leased Premises") in the
building commonly referred to as 1700 Pacific Avenue located in Dallas, Texas
(the "BUILDING");

                  WHEREAS, the Original Lease has been amended by that certain
First Amendment to Office Lease dated as of July 16, 1998, and that certain
Second Amendment to Office Lease dated as of February 17, 1999 (the "Second
Amendment") (the Original Lease, as amended, the "LEASE"); and

                  WHEREAS, Landlord and Tenant mutually desire to amend the
Lease to modify the number of Rentable Square Feet comprising the Expansion
Space as provided in the Second Amendment and to modify certain other provisions
of the Second Amendment as set forth herein but not otherwise.

                  NOW THEREFORE, for and in consideration of Ten Dollars and
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged and confessed, Landlord and Tenant, intending to be and
being legally bound, do hereby agree as follows:

1.       Defined Terms.

         All capitalized terms utilized herein and not defined herein shall have
the meanings ascribed thereto in the Lease.

2.       Change in Rentable Square Feet.

Effective as of the Amendment Effective Date, Paragraph 2 of the Second
Amendment shall be amended as follows:

         (a) The number "3,198" located in the second line thereof shall be
deleted and replaced with the number "3,448"; and

                                      -1-
<PAGE>   126

         (b) The number "34,676" located in the fifth line thereof shall be
deleted and replaced with the number "34,926".

3.       Tenant's Proportionate Share.

Effective as of the Amendment Effective Date, Paragraph 7 of the Second
Amendment shall be amended to delete the percentage "2.578%" located in the
first line thereof and to replace the percentage "2.605%" therefor.

4.       Work Allowance.

Effective as of the Amendment Effective Date, the first paragraph of Section 2
of EXHIBIT B attached to the Second Amendment shall be amended to delete the
amount "$55,032" located in the fourth line thereof and to replace the amount
"$59,334.06" therefor.

5.       Exhibit A.

Effective as of the Amendment Effective Date, EXHIBIT A attached to the Second
Amendment shall be deleted and replaced with EXHIBIT A attached hereto.

6.       Brokerage Commission.

         Except for the commission due and payable to Trinity Advisory Group and
Cousins Stone, LP. (collectively, the "BROKERS"), which commissions shall be
payable by Landlord pursuant to separate agreements entered into by Landlord and
Brokers, Landlord and Tenant hereby represent and warrant to each other that no
commission is due and payable to any broker or other leasing agent in connection
with this Amendment as a result of its own dealings with any such broker or
leasing agent, and Landlord and Tenant hereby agree to indemnify and hold each
other harmless from and against all loss, damage, cost and expense (including
reasonable attorneys fees) suffered by the other party as a result of a breach
of the foregoing representation and warranty.

                                      -2-
<PAGE>   127

7.       Full Force and Effect.

In the event any of the terms of the Lease conflict with the terms of this
Amendment, the terms of this Amendment shall control. The Lease remains in full
force and effect without any further amendments, alterations, or modifications
thereto except as set forth herein, and Landlord and Tenant expressly ratify and
confirm the Lease as amended hereby. The Lease, as amended by this Amendment,
constitutes the entire agreement between the parties hereto and no further
modification of the Lease shall be binding unless evidenced by an agreement in
writing signed by Landlord and Tenant.

                  EXECUTED the day and year first above written.

                                        LANDLORD:

                                        F/P/D MASTER LEASE, INC.,
                                        a Texas corporation

                                        By:    /s/ JOHN B. DETWILER
                                           -------------------------------------
                                        Name:  John B. Detwiler
                                             -----------------------------------
                                        Title: Asst VP
                                              ----------------------------------

                                        TENANT:

                                        SERVICE ASSET MANAGEMENT COMPANY,
                                        a North Carolina corporation

                                        By:    /s/ ROGER J. ENGEMOEN, JR.
                                           -------------------------------------
                                        Name:  Roger J. Engemoen, Jr.
                                             -----------------------------------
                                        Title: President
                                              ----------------------------------

<PAGE>   128

                        FOURTH AMENDMENT TO OFFICE LEASE

                 THIS FOURTH AMENDMENT TO OFFICE LEASE (this "Amendment") is
made and entered into this 30th day of November, 1999 (the "Amendment Effective
Date"), by and between F/P/D MASTER LEASE, INC., a Texas corporation
("Landlord"), and SERVICE ASSET MANAGEMENT COMPANY, a North Carolina corporation
("Tenant").

                                   WITNESSETH:

                  WHEREAS, Landlord and Tenant entered into that certain Office
Lease dated as of May 20, 1998, as amended by (i) that certain First Amendment
to Office Lease, dated as of July 16, 1998, (ii) that certain Second Amendment
to Office Lease dated as of February 17, 1999, and (iii) that certain Third
Amendment to Office Lease (the "Third Amendment"), dated as of September 20,
1999 (as amended, the "Lease"), with respect to the lease of approximately
34,676 Rentable Square Feet ("Leased Premises") in the building commonly
referred to as 1700 Pacific Avenue located in Dallas, Texas (the "Building");
and

                  WHEREAS, Landlord and Tenant mutually desire to amend the
Lease to expand the Leased Premises and to modify certain other provisions of
the Lease as set forth herein but not otherwise.

                 NOW THEREFORE, for and in consideration of Ten Dollars and
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged and confessed, Landlord and Tenant, intending to be and
being legally bound, do hereby agree as follows:

1. Defined Terms.

         (a) The "First Expansion Date" shall be the earliest to occur of (i)
January 15, 2000, or (ii) the date Tenant occupies any part of the First
Expansion Space (as defined below).

         (b) The "Second Expansion Date" shall be the earliest to occur of (i)
July 1, 2000, or (ii) the date Tenant occupies any part of the Second Expansion
Space (as defined below).

         (c) The "Expansion Space" shall mean, individually and collectively as
the context requires, the First Expansion Space and/or the Second Expansion
Space.

         (d) All other capitalized terms utilized herein and not defined herein
shall have the meanings ascribed thereto in the Lease.

2. Expansion of Leased Premises.

         (a) Commencing on the First Expansion Date, the Leased Premises shall
be expanded from the existing 34,926 Rentable Square Feet (the "Existing Space")
to include an additional 4,345

                                      -1-
<PAGE>   129

Rentable Square Feet on Floor 15 of the Building (the "First Expansion Space")
as shown on Exhibit A attached hereto and made a part hereof, such that the
total Rentable Square Feet contained within the Leased Premises as of the First
Expansion Date shall be 39,271 Rentable Square Feet.

         (b) Commencing on the Second Expansion Date, the Leased Premises shall
be expanded from the then existing 39,271 Rentable Square Feet (as previously
expanded to include the First Expansion Space) to include an additional 11,052
Rentable Square Feet on Floor 15 of the Building (the "Second Expansion Space")
as shown on Exhibit A, such that the total Rentable Square Feet contained within
the Leased Premises as of the Second Expansion Date shall be 50,323 Rentable
Square Feet.

         (c) The Expansion Space shall be added to and become part of the Leased
Premises for all purposes of the Lease and, except as expressly set forth
herein, shall be subject to all of the provisions of the Lease, as amended
hereby, applicable to the Leased Premises, including, without limitation,
Tenant's obligation to pay Rent.

3. Term of Lease for Expansion Space.

         The term of the Lease (i) for the First Expansion Space shall commence
on the First Expansion Date, (ii) for the Second Expansion Space shall commence
on the Second Expansion Date, and (iii) shall expire for the First Expansion
Space, the Second Expansion Space and all other portions of the Leased Premises
on the Expiration Date.

4. Parking.

         (a) Commencing on the First Expansion Date, Landlord shall provide to
Tenant, and Tenant shall accept and lease for the remainder of the Lease Term,
as it may be extended, (i) six (6) additional unreserved spaces in the Off-Site
Garage (for a total of thirty (36) unreserved spaces in the Off-Site Garage),
and (ii) one (1) additional unreserved space in the On-Site Garage (for a total
of seven (7) unreserved spaces in the On-Site Garage).

         (b) Commencing on the Second Expansion Date, Landlord shall provide to
Tenant, and Tenant shall accept and lease for the remainder of the Lease Term,
as it may be extended, (i) six (6) additional unreserved spaces in the Off-Site
Garage (for a total of forty-two (42) unreserved spaces in the Off-Site Garage),
and (ii) two (2) additional unreserved spaces in the On-Site Garage (for a total
of nine (9) unreserved spaces in the On-Site Garage).

         (c) Such additional spaces shall be provided to Tenant on the same
terms and conditions as set forth in Section 53 of the Lease and shall not be
considered Temporary Spaces.

                                       -2-

<PAGE>   130

5. Tenant Improvements.

         (a) Landlord and Tenant each shall comply with the provisions of
Exhibit B attached hereto. Tenant agrees to cooperate with Landlord in
Landlord's construction of the Tenant Finish Work (as defined in said Exhibit
B), and Tenant shall not take any action which would impede or hinder Landlord's
construction of the Tenant Finish Work. Tenant hereby grants to Landlord access
to the Existing Space and the Expansion Space commencing on the date hereof, for
the purpose of the construction of the Tenant Finish Work and performing the
obligations of Landlord set forth in Exhibit B. Tenant acknowledges that (i) the
construction of the Tenant Finish Work may affect Tenant's business, (ii)
Landlord shall not be responsible for any effect such construction may have on
Tenant's business, and (iii) any such disturbance or effect in (i) or (ii) shall
not constitute a default by Landlord under the Lease as amended hereby.

         (b) THE FIRST EXPANSION SPACE SHALL BE FURNISHED TO TENANT ON THE FIRST
EXPANSION DATE AND THE SECOND EXPANSION SPACE SHALL BE FURNISHED TO TENANT ON
THE SECOND EXPANSION DATE, EACH IN AN AS-IS CONDITION AND LANDLORD SHALL NOT BE
OBLIGATED TO MAKE ANY IMPROVEMENTS THERETO, EXCEPT AS MAY BE PROVIDED IN EXHIBIT
B, NOR SHALL TENANT BE ENTITLED TO ANY ALLOWANCE WITH RESPECT THERETO, EXCEPT AS
MAY BE PROVIDED IN EXHIBIT B. ADDITIONALLY, LANDLORD MAKES NO WARRANTIES,
EXPRESS OR IMPLIED, WITH RESPECT TO THE LEASEHOLD IMPROVEMENTS IN THE EXISTING
SPACE, THE EXPANSION SPACE OR ANY PORTION THEREOF. ALL IMPLIED WARRANTIES WITH
RESPECT THERETO, INCLUDING BUT NOT LIMITED TO THOSE OF MERCHANTABILITY AND
FITNESS FOR A PARTICULAR PURPOSE, ARE EXPRESSLY NEGATED AND WAIVED.

6. Minimum Rent for Expansion Space

         (a) Commencing (i) on the First Expansion Date with respect to the
First Expansion Space, and (ii) on the Second Expansion Date with respect to the
Second Expansion Space, and continuing through and until the Expiration Date,
Tenant's Minimum Rent for the Expansion Space shall be an annual amount equal to
the sum of the product of(x) the annual Minimum Rental Rate, identified below
for the applicable period identified therein, multiplied by (y) the Rentable
Square Feet then included within the Expansion Space, subject in each case,
however, to the provisions of Paragraph 2 of Exhibit B.

                                      -3-
<PAGE>   131

<TABLE>
<CAPTION>
Period                                                Minimum Rental Rate
------                                                -------------------
<S>                                                   <C>
First Expansion Date or Second Expansion                    $ 16.00
Date, as applicable, through the expiration of
the thirtieth (30th) month of the Lease Term

The commencement of the thirty-first (31st)                 $ 17.00
month of the Lease Term through the
expiration of the fifty-fourth (54th) month of
the Lease Term

The commencement of the fifty-fifth (55th)                  $ 18.00
month of the Lease Term through the
expiration of the seventh-eighth (78th) month
of the Lease Term

The commencement of the seventy-ninth                       $ 19.00
(79th) month of the Lease Term through the
expiration of the one hundred second (102nd)
month of the Lease Term

The commencement of the one hundred third                   $ 21.00
(103rd) month of the Lease Term through the
expiration of the one hundred twenty-sixth
(126th) month of the Lease Term
</TABLE>

         All such Minimum Rent shall be payable in accordance with the
provisions set forth in the Lease.

7. Tenant's Proportionate Share.

         (a) Effective as of the First Expansion Date, Tenant's Proportionate
Share shall become 2.911% (in lieu of the 2.605% share set forth in the Third
Amendment), as determined by dividing the number of Rentable Square Feet of the
Leased Premises (as expanded to include the First Expansion Space) by the Total
Building Area.

         (b) Effective as of the Second Expansion Date, Tenant's Proportionate
Share shall become 3.735% (in lieu of the 2.911% share set forth in Section 7(a)
above), as determined by dividing the number of Rentable Square Feet of the
Leased Premises (as expanded to include the Second Expansion Space) by the Total
Building Area.

         (c) Tenant's Proportionate Share of both Operating Costs and Total
Electricity Costs, as recalculated, shall be paid in accordance with the
provisions set forth in the Lease. The Base Year for the purpose of calculating
the Operating Costs shall remain calendar year 1998 and shall be applicable to
both the Expansion Space and the Existing Space.

                                      -4-
<PAGE>   132

8. Right of First Notice.

         (a) If during the Lease Term space on floor 20 of the Building (the
FIRST NOTICE SPACE) is available for lease and Landlord receives an expression
of interest in the First Notice Space from a prospective tenant, Landlord shall
deliver a notice to Tenant offering to lease the First Notice Space to Tenant
(subject to subparagraph (i) below). Landlord's notice must specify the First
Notice Rate (defined below). The term AVAILABLE FOR LEASE means that the First
Notice Space is not then subject to any existing rights of third parties,
including, without limitation, rights of first notice, expansion rights,
extension rights, options to lease, or other rights. Notwithstanding the
foregoing, if during the Lease Term Landlord receives an expression of interest
in all or a part of floor 20 that also includes an expression of interest in all
or a part of any other floor from a prospective tenant, then Landlord shall not
be obligated to offer the First Notice Space to Tenant, and Tenant may not
exercise its option to lease the First Notice Space in such case.

         (b) Tenant may elect to lease the First Notice Space by delivering a
notice (the RESPONSE NOTICE) to Landlord within 5 days after the date of
Landlord's notice specifying that Tenant elects either (1) to lease all, but not
less than all, of the applicable First Notice Space offered or (2) to decline to
lease the applicable First Notice Space offered.

         (c) If (l) Landlord does not receive the Response Notice within the
5-day period or (2) in the Response Notice Tenant does not elect to lease all of
the applicable First Notice Space offered, Tenant is deemed to waive its right
to lease the First Notice Space and Tenant has no further rights under this
Paragraph, but Tenant shall have a continuing right of first notice with respect
to the First Notice Space subsequently offered on terms materially different
from those contained in Landlord's notice or if Landlord does not enter into a
binding commitment with the prospective tenant within 120 days after delivery of
Landlord's notice to Tenant.

         (d) If Tenant timely delivers a Response Notice electing to lease all
of the applicable First Notice Space offered, Tenant's lease of the applicable
First Notice Space commences on the earlier of the date that Tenant occupies
such First Notice Space or the date 60 days after Landlord's receipt of the
Response Notice and is on the same terms as the Lease except that the Rent and
other applicable terms for the First Notice Space adjust based on the First
Notice Rate. Landlord shall prepare and deliver to Tenant an amendment to the
Lease adding the First Notice Space to the Leased Premises upon the terms
specified in this Paragraph, Tenant shall execute, and deliver the amendment to
Landlord within 10 days after Tenant's receipt of the amendment, and Landlord
will deliver to Tenant a counterpart of the amendment executed by Landlord.

         (e) Landlord is not obligated to offer the First Notice Space to
Tenant, and Tenant may not exercise its option to lease the First Notice Space,
if at the time Landlord would otherwise be obligated to give the Notice to
Tenant, Tenant is in default under the Lease.

         (f) The term FIRST NOTICE RATE means the Market Rate, as defined in
Paragraph 60 of the Lease, as determined by Landlord in its sole discretion,
provided the Rent components of the First Notice Rate will not be less than the
Rent then being paid under the Lease.

                                      -5-
<PAGE>   133

         (g) Tenant may not assign this option to lease the First Notice Space
to any assignee of the Lease, nor may any sublessee or assignee exercise this
option.

9. Brokerage Commission.

         Landlord and Tenant hereby represent and warrant to each other that no
commission is due and payable to any broker or other leasing agent in connection
with this Amendment as a result of its own dealings with any such broker or
leasing agent, except Trinity Advisory Group, Inc. ("Broker"), and Landlord and
Tenant hereby agree to indemnify and hold each other harmless from and against
all loss, damage, cost and expense (including reasonable attorneys' fees)
suffered by the other party as a result of a breach of the foregoing
representation and warranty.

         Landlord has agreed to pay Broker a commission pursuant to a separate
agreement between Broker and Landlord.

10. Acceptance of Expansion Space.

         Tenant's occupancy of the Expansion Space is conclusive evidence that
Tenant: (A) accepts the Expansion Space as suitable for the purposes for which
they are leased; (B) accepts the Expansion Space as being in a good and
satisfactory condition; and (C) waives any defects in the Expansion Space.

11. Full Force and Effect.

         In the event any of the terms of the Lease conflict with the terms of
this Amendment, the terms of this Amendment shall control. The Lease remains in
full force and effect without any further amendments, alterations, or
modifications thereto, except as set forth herein, and Landlord and Tenant
expressly ratify and confirm the Lease as amended hereby. The Lease, as amended
by this Amendment, constitutes the entire agreement between the parties hereto
and no further modification of the Lease shall be binding unless evidenced by an
agreement in writing signed by Landlord and Tenant.

                      [END OF PAGE; SIGNATURE PAGE FOLLOWS]

                                       -6-
<PAGE>   134

         EXECUTED the day and year first above written.

                                          LANDLORD:

                                          F/P/D MASTER LEASE, INC.,
                                          a Texas corporation

                                          By:  /s/ JOHN B. DETWILER
                                             -----------------------------------
                                          Name:  John B. Detwiler
                                               ---------------------------------
                                          Title: Assistant Vice President
                                                 -------------------------------

                                          TENANT:

                                          SERVICE ASSET MANAGEMENT
                                          COMPANY, a North Carolina corporation

                                          By:  /s/ ROGER J. ENGEMOEN JR.
                                             -----------------------------------
                                          Name:    Roger J. Engemoen Jr.
                                               ---------------------------------
                                          Title:  President
                                                 -------------------------------

                                      -7-
<PAGE>   135
                         FIFTH AMENDMENT TO OFFICE LEASE

                 THIS FIFTH AMENDMENT TO OFFICE LEASE (this "Amendment") is made
and entered into this 25th day of May, 2000 (the "Amendment Effective Date"), by
and between F/P/D MASTER LEASE, INC., a Texas corporation ("Landlord"), and
SERVICE ASSET MANAGEMENT COMPANY, a North Carolina corporation ("Tenant").

                                   WITNESSETH:

                 WHEREAS, Landlord and Tenant entered into that certain Office
Lease (the "Original Lease") dated as of May 20, 1998, with respect to the lease
of approximately 31,478 Rentable Square Feet ("Leased Premises") in the building
commonly referred to as 1700 Pacific Avenue located in Dallas, Texas (the
"Building");

                 WHEREAS, the Original Lease has been amended by that certain
First Amendment to Office Lease dated as of July 16, 1998, that certain Second
Amendment to Office Lease dated as of February 17, 1999, that certain Third
Amendment to Office Lease dated as of September 20, 1999, and that certain
Fourth Amendment to Office Lease dated as of November 30th, 1999 (the Original
Lease, as amended, the "Lease"); and

                 WHEREAS, Landlord and Tenant mutually desire to amend the Lease
to expand the Leased Premises and to modify certain other provisions of the
Lease as set forth herein but not otherwise.

                 NOW THEREFORE, for and in consideration of Ten Dollars and
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged and confessed, Landlord and Tenant, intending to be and
being legally bound, do hereby agree as follows:

1. Defined Terms.

         (a) The "Expansion Date" shall be the earliest to occur of (i) January
1, 2001, or (ii) the date Tenant occupies any part of the Expansion Space.

         (b) All other capitalized terms utilized herein and not defined herein
shall have the meanings ascribed thereto in the Lease.

2. Expansion of Leased Premises.

         Commencing on the Expansion Date, the Leased Premises shall be expanded
from the existing 50,323 Rentable Square Feet (the "Existing Space") to include
an additional 12,620 Rentable Square Feet on Floor 20 of the Building (the
"Expansion Space") as shown on Exhibit A attached hereto and made a part hereof,
such that the total Rentable Square Feet contained within the

                                      -1-
<PAGE>   136

Leased Premises as of the Expansion Date shall be 62,943 Rentable Square Feet.
The Expansion Space shall be added to and become part of the Leased Premises for
all purposes of the Lease and, except as expressly set forth herein, shall be
subject to all of the provisions of the Lease as amended hereby, applicable to
the Leased Premises, including, without limitation, Tenant's obligation to pay
Rent.

3. Term OF Expansion Space.

         The term of the Lease for the Expansion Space (the "EXPANSION TERM")
shall commence on the Expansion Date and shall terminate on December 31, 2008
(the "EXPIRATION DATE"), which date is the same date the Lease shall terminate
with respect to the remainder of the Leased Premises (unless the Term of the
Lease is extended pursuant to Section 61 of the Lease, in which case the term
for the Expansion Space shall terminate on the last day of such renewal term).

4. Parking.

         Commencing on the Expansion Date, Landlord shall provide to Tenant, and
Tenant shall accept and lease for the remainder of the Lease Term, as it may be
extended, ten (10) additional unreserved spaces in the Off-Site Garage (for a
total of fifty-two (52) unreserved spaces in the Off-Site Garage), and three (3)
additional unreserved spaces in the On-Site Garage (for a total of twelve (12)
spaces in the On-Site Garage), on the same terms and conditions as set forth in
Section 53 of the Lease. Such additional thirteen (13) spaces provided herein
shall not be considered Temporary Spaces.

5. Tenant Improvements.

         (a) Landlord and Tenant each shall comply with the provisions of
EXHIBIT B attached hereto. Tenant agrees to cooperate with Landlord in
Landlord's construction of the Tenant Finish Work (as defined in said EXHIBIT
B), and Tenant shall not take any action which would impede or hinder
Landlord's construction of the Tenant Finish Work. Tenant hereby grants to
Landlord access to the Existing Space and the Expansion Space commencing on the
date hereof, for the purpose of the construction of the Tenant Finish Work and
performing the obligations of Landlord set forth in EXHIBIT B. Tenant
acknowledges that (i) the construction of the Tenant Finish Work may affect
Tenant's business, (ii) Landlord shall not be responsible for any effect such
construction may have on Tenant's business, and (iii) any such disturbance or
effect in (i) or (ii) shall not constitute a default by Landlord under the Lease
as amended hereby.

         (b) THE EXPANSION SPACE SHALL BE FURNISHED TO TENANT ON THE EXPANSION
DATE IN AN AS-IS CONDITION AND LANDLORD SHALL NOT BE OBLIGATED TO MAKE ANY
IMPROVEMENTS THERETO EXCEPT AS MAY BE PROVIDED IN EXHIBIT B, NOR SHALL TENANT BE
ENTITLED TO ANY ALLOWANCE WITH RESPECT THERETO, EXCEPT AS MAY BE PROVIDED IN
EXHIBIT B. ADDITIONALLY, LANDLORD MAKES NO WARRANTIES, EXPRESS OR IMPLIED, WITH

                                      -2-
<PAGE>   137

RESPECT TO THE LEASEHOLD IMPROVEMENTS IN THE EXISTING SPACE, THE EXPANSION SPACE
OR ANY PORTION THEREOF. ALL IMPLIED WARRANTIES WITH RESPECT THERETO, INCLUDING
BUT NOT LIMITED TO THOSE OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR
PURPOSE, ARE EXPRESSLY NEGATED AND WAIVED.

6. Minimum Rent For Expansion Space.

         (a) Commencing on the Expansion Date and continuing through and until
the Expiration Date, Tenant's Minimum Rent for the Expansion Space shall be an
annual amount equal to the sum of the product of (x) the annual Minimum Rental
Rate identified below for the applicable period identified therein multiplied by
(y) the Rentable Square Feet of the Expansion Space.

<TABLE>
<CAPTION>
                    Period                                                Minimum Rental Rate
                    ------                                                -------------------
<S>                                                                       <C>
                    Expansion Date through the expiration                       $ 17.00
                    of the twenty-fourth (24th) month of the
                    Expansion Term

                    The commencement of the twenty-fifth                        $ 18.00
                    (25th) month of the Expansion Term
                    through the expiration of the forty-eighth
                    (48th) month of the Expansion Term

                    The commencement of the forty-ninth                         $ 19.00
                    (49th) month of the Expansion Term
                    through the expiration of the seventy-
                    second (72nd) month of the Expansion
                    Term

                    The commencement of the seventy-third                       $ 22.00
                    (73rd) month of the Expansion Term
                    through the Expiration Date
</TABLE>

         All such Minimum Rent shall be payable in accordance with the
provisions set forth in the Lease; provided, however, the first installment of
Minimum Rent for the Expansion Space shall be due and payable upon the Amendment
Effective Date.

7. Tenant's Proportionate Share.

         Effective as of the Expansion Date, Tenant's Proportionate Share shall
be 4.696% (in lieu of the 3.735% share set forth in Section 1 of the Lease) and
determined by dividing the number of Rentable Square Feet of the Leased Premises
(as expanded) by the Total Building Area. Tenant's

                                      -3-
<PAGE>   138

Proportionate Share as recalculated shall be paid in accordance with the
provisions set forth in the Lease. The Base Year for the purpose of calculating
the Operating Costs shall remain calendar year 1998 and shall be applicable to
both the Expansion Space and the Existing Space.

8. Right of First Notice.

         (a) If during the Lease Term space on floor 20 of the Building (the
FIRST NOTICE SPACE) is available for lease and Landlord receives an expression
of interest in the First Notice Space from a prospective tenant, Landlord shall
deliver a notice to Tenant offering to lease the First Notice Space to Tenant
(subject to subparagraph (i) below). Landlord's notice must specify the First
Notice Rate (defined below). The term AVAILABLE FOR LEASE means that the First
Notice Space is not then subject to any existing rights of third parties,
including, without limitation, rights of first notice, expansion rights,
extension rights, options to lease, or other rights. Notwithstanding the
foregoing, if during the Lease Term Landlord receives an expression of interest
in all or a part of floor 20 that also includes an expression of interest in all
or a part of any other floor from a prospective tenant, then Landlord shall not
be obligated to offer the First Notice Space to Tenant, and Tenant may not
exercise its option to lease the First Notice Space in such case.

         (b) Tenant may elect to lease the First Notice Space by delivering a
notice (the RESPONSE NOTICE) to Landlord within 5 days after the date of
Landlord's notice specifying that Tenant elects either (1) to lease all, but
not less than all, of the applicable First Notice Space offered or (2) to
decline to lease the applicable First Notice Space offered.

         (c) If (1) Landlord does not receive the Response Notice within the
5-day period or (2) in the Response Notice Tenant does not elect to lease all of
the applicable First Notice Space offered, Tenant is deemed to waive its right
to lease the First Notice Space and Tenant has no further rights under this
Paragraph, but Tenant shall have a continuing right of first notice with respect
to the First Notice Space subsequently offered on terms materially different
from those contained in Landlord's notice or if Landlord does not enter into a
binding commitment with the prospective tenant within 120 days after delivery of
Landlord's notice to Tenant.

         (d) If Tenant timely delivers a Response Notice electing to lease all
of the applicable First Notice Space offered, Tenant's lease of the applicable
First Notice Space commences on the earlier of the date that Tenant occupies
such First Notice Space or the date 60 days after Landlord's receipt of the
Response Notice and is on the same terms as the Lease except that the Rent and
other applicable terms for the First Notice Space adjust based on the First
Notice Rate. Landlord shall prepare and deliver to Tenant an amendment to the
Lease adding the First Notice Space to the Leased Premises upon the terms
specified in this Paragraph, Tenant shall execute, and deliver the amendment to
Landlord within 10 days after Tenant's receipt of the amendment, and Landlord
will deliver to Tenant a counterpart of the amendment executed by Landlord.

                                      -4-
<PAGE>   139

         (e) Landlord is not obligated to offer the First Notice Space to
Tenant, and Tenant may not exercise its option to lease the First Notice Space,
if at the time Landlord would otherwise be obligated to give the Notice to
Tenant, Tenant is in default under the Lease.

         (f) The term FIRST NOTICE RATE means the Market Rate, as defined in
Paragraph 60 of the Lease, as determined by Landlord in its sole discretion,
provided the Rent components of the First Notice Rate will not be less than the
Rent then being paid under the Lease.

         (g) Tenant may not assign this option to lease the First Notice Space
to any assignee of the Lease, nor may any sublessee or assignee exercise this
option.

9. Brokerage Commission.

         Landlord and Tenant hereby represent and warrant to each other that no
commission is due and payable to any broker or other leasing agent in connection
with this Amendment as a result of its own dealings with any such broker or
leasing agent, except Trinity Advisory Group, Inc. ("Broker"), and Landlord and
Tenant hereby agree to indemnify and hold each other harmless from and against
all loss, damage, cost and expense (including reasonable attorneys' fees)
suffered by the other party as a result of a breach of the foregoing
representation and warranty.

10. Acceptance of Expansion Space.

         Tenant's occupancy of the Expansion Space is conclusive evidence that
Tenant: (A) accepts the Expansion Space as suitable for the purposes for which
they are leased; (B) accepts the Expansion Space as being in a good and
satisfactory condition; and (C) waives any defects in the Expansion Space.

11. Full Force and Effect.

         In the event any of the terms of the Lease conflict with the terms of
this Amendment, the terms of this Amendment shall control. The Lease remains in
full force and effect without any further amendments, alterations, or
modifications thereto except as set forth herein, and Landlord and Tenant
expressly ratify and confirm the Lease as amended hereby. The Lease, as amended
by this Amendment, constitutes the entire agreement between the parties hereto
and no further modification of the Lease shall be binding unless evidenced by an
agreement in writing signed by Landlord and Tenant.

                                      -5-
<PAGE>   140

         EXECUTED the day and year first above written.

                                    LANDLORD:

                                    F/P/D MASTER LEASE, INC.,
                                    a Texas corporation

                                    By: /s/ JOHN B. DETWILER
                                       -------------------------------------
                                    Name: John B. Detwiler
                                         -----------------------------------
                                    Title: Assistant Vice President
                                          ----------------------------------

                                    TENANT:

                                    SERVICE ASSET MANAGEMENT COMPANY,
                                    a North Carolina corporation

                                    By: /s/ ROGER J. ENGEMOEN, JR.
                                       -------------------------------------
                                    Name: Roger J. Engemoen, Jr.
                                         -----------------------------------
                                    Title: President
                                          ----------------------------------

                                       -6-

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