Document:

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                                LEASE AGREEMENT

                    LANDLORD:   BOYER JORDAN VALLEY 1 L.C., BY
                                ITS MANAGING PARTNER, THE
                                BOYER COMPANY, L.C.

                    TENANT:     TENFOLD CORPORATION
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                                LEASE AGREEMENT

                       TENFOLD OFFICE BUILDINGS PHASE I

     THIS LEASE AGREEMENT (the "Lease") is made and entered into as of this 28th
day of April, 2000, by and between BOYER JORDAN VALLEY 1, L.C. by its managing
partner, THE BOYER COMPANY, L.C., a Utah Limited Liability Company, (the
"Landlord"), and TENFOLD CORPORATION, a Delaware Corporation, (the "Tenant"),
(collectively the "Parties").

     For and in consideration of the rental to be paid by Tenant and of the
covenants and agreements herein set forth to be kept and performed by Tenant,
Landlord hereby leases to Tenant and Tenant hereby leases from Landlord, the
Leased Premises (as hereafter defined) and certain other areas, rights and
privileges for the term, at the rental and subject to and upon all of the terms,
covenants and agreements hereinafter set forth.

     It is the intent of the Parties that this Lease be construed and
interpreted as an "operating lease" under the guidelines established by EITF 97-
10 and other Generally Accepted Accounting Principles.

I.   PREMISES

          1.1  Description of Premises. Landlord does hereby demise, lease and
     let unto Tenant, and Tenant does hereby take and receive from Landlord the
     following:

          (a)  That certain floor area containing approximately 168,600 rentable
square feet (the "Leased Premises") in Office Buildings One and Two2 (the
"Buildings") located at approximately 10000 South 900 West in South Jordan, Utah
containing approximately 200,000 rentable square feet (the "Building Area"), on
the real property (the "Property") described on Exhibit "A" attached hereto and
by this reference incorporated herein. The space occupied by Tenant consists of
that certain area crosshatched on Exhibit "B" which is attached hereto and by
this reference incorporated herein.

               (i)  The Leased Premises and the Building Area shall be measured
     by the Base Building architect in accordance with the American National
     Standard Z65.1-1996 published by the Building Owners and Managers
     Association.

               (ii) "Tenant's Proportionate Share" shall mean the percentage
     derived from the fraction, the numerator of which is the gross rentable
     square footage of the Leased Premises (168,600), the denominator of which
     is the gross rentable square footage of the Buildings (200,000). In this
     Lease, Tenant's pro-rata share initially is 84.30%, subject to increase or

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     decrease due to increases or decreases in the gross rentable square footage
     of the Leased Premises and/or the Buildings.

     (b)  The non-exclusive right to Tenant's use of the Common Areas (as
defined in Section 20.1 below).

     (c)  Such non-exclusive rights-of-way, easements and similar rights with
respect to the Building and Property as may be reasonably necessary for access
to and egress from, the Leased Premises.

     (d)  The non-exclusive right to use those areas designated and suitable for
vehicular parking, including the non-exclusive right to the use of six hundred
seventy four (674) parking stalls, based on the ratio of four (4) parking spaces
per 1,000 rentable square feet.

     (e)  The non-exclusive right to use of the roof for installation of
Tenant's equipment including satellite equipment. Landlord shall have the right
to review and reasonably approve the location of Tenant's equipment.

     1.2  Construction of Tenant Improvements. The obligation of Landlord to
perform the work and supply the necessary materials and labor to prepare the
Leased Premises for occupancy ("Tenant Improvements") are described in detail on
Exhibit "C". Landlord and Tenant shall do all acts required of them as described
on Exhibit "C", expend all funds as described on Exhibit "E" and shall perform
or have the work performed promptly and diligently in a first class and
workmanlike manner.

     1.3  Construction of Building. If the Leased Premises and the Building in
which the Leased Premises are located are not currently in existence, Landlord
shall, at its own cost and expense, construct and complete such Building and
cause all of the construction which is to be performed by it in completing the
Building and performing its work as set forth on Exhibit "C", to be
substantially completed, and the Leased Premises ready for Tenant to install its
fixtures and equipment and to perform its other work as described on Exhibit "C"
as soon as reasonably possible, but in no event later than eighteen (18) months
after the date of this Lease. In the event that Landlord's obligation of
construction has not been fulfilled upon the expiration of said eighteen (18)
month period, Tenant shall have the right to exercise any right or remedy
available to it under this Lease, including the right to terminate this Lease.
Landlord shall be obligated to pay for any increase in the actual cost of
construction over and above the construction costs as specified in Exhibit "G-
1", unless such increase shall be the result of a requested change or upgrade of
the floor plan (Exhibit "B"), initiated by the Tenant, its agents or assigns.
Any change in the Buildings requested by Tenant, its agents or assigns that
results in an increase in the cost or time to complete the Buildings shall not
be performed unless Tenant executes an amendment to this Lease and Exhibit "G-
1" which will modify the Project Budget and the Tenant's lease rate.

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          1.4  Changes to Building. Landlord hereby reserves the right at any
     time and from time to time to make minor changes, alterations or additions
     to the Building or to the Property, provided Landlord gives Tenant
     reasonable prior written notice of intent to do so, and the proposed
     changes or alterations will have no material impact on the Tenant's ability
     to conduct its business in the Leased Premises or, except as required by
     applicable law or good engineering practices, the agreed upon design.

          1.5  Economic Incentives. Landlord and Tenant shall share equally any
     economic benefits or tax rebates received from a Redevelopment Area or
     similar incentive program granted to the Landlord exclusively for the
     building by the City of South Jordan or Salt Lake County. This agreement to
     share economic incentives expires when the Redevelopment Area or similar
     program expires.

II.  TERM

          2.1  Length of Term. The term of this Lease shall be for a period of
     Ten (10) years plus the partial calendar month, if any, occurring after the
     Commencement Date (as hereinafter defined) if the Commencement Date occurs
     other than on the first day of a calendar month.

          2.2  Commencement Date; Obligation to Pay. The term of this Lease and
     Tenant's obligation to pay rent hereunder shall commence on the first to
     occur of the following dates ("Commencement Date"):

          (a)  The date Tenant occupies the Leased Premises and conducts
     business.

          (b)  The Monday that is a minimum of Fourteen (14) calendar days after
     the Landlord, notified Tenant in writing that Landlord's construction
     obligations respecting the Leased Premises have been fulfilled and that the
     Leased Premises are ready for occupancy.

               The Commencement Date of the Lease shall not occur until each of
     the following have occurred; (i) the Buildings, with the exception of minor
     punch list items, are Substantially Completed as defined in AIA Document
     A201-1997 in accordance with Building Plans; (ii) the Tenant Improvements,
     with the exception of minor punch list items, are substantially completed
     in accordance with Tenant's Plans; (iii) Landlord has obtained approval
     from South Jordan City for occupancy for the Building and the Leased
     Premises; (iv) the Building Systems, utilities and life safety systems
     serving the Leased Premises are fully operational; (v) Tenant has access to
     its allotment of parking spaces; and (vi) Landlord has tendered possession
     of the Leased Premises to Tenant. Exhibit "D" acknowledges the Commencement
     Date of the Lease.

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          2.3  Construction of Leased Premises. Landlord shall construct or
     cause to be constructed the improvements to the Leased Premises (see
     Exhibit "C -Work Letter"). Landlord shall itemize each part of the
     construction and its associated cost. Landlord shall pay for $843,000
     ($5.00 per rentable square foot) of the cost listed (the "Tenant
     Allowance") and subject to the provisions of Exhibit "C" including
     specifically but without limitation Paragraph 3 of Exhibit "C" Tenant shall
     be responsible for the costs that exceed the Tenant Allowance as shown on
     Exhibit "E". Any special decorator items, equipment, furniture or
     furnishings not designated on Exhibit "E", shall be the sole cost of
     Tenant.

               The Construction of Leased Premises as designated in this section
     2.3, in Exhibit "C", and Exhibit "E", shall be in accordance with the
     minimum Building standard finishes described in Exhibit "F".

          2.4  Acknowledgment of Commencement Date. Landlord and Tenant shall
     execute a written acknowledgment of the Commencement Date in the form
     attached hereto as Exhibit "D".

          2.5  Right to Lease Additional Space. As specified in Section 1.1(a)
     of this Lease, Landlord is constructing approximately 31,400 rentable
     square feet in excess of that Leased by Tenant. Landlord grants Tenant the
     right to lease the space on the following terms and conditions:

               Tenant shall have the exclusive right to lease the 31,400
     rentable square feet through February 28, 2001. Thereafter, Landlord may
     lease the space to Tenant or other tenants. If Tenant leases additional
     space, it shall be under the same terms and conditions as the Leased
     Premises.

          (b)  In the event that the 31,400 square feet is leased to other
     tenants, Landlord warrants that any renewal options to the other tenants
     shall be subordinated to Tenant's right to lease the space at the end of
     the other tenant's lease term.

          2.6  Renewal Option. Tenant shall have the option to renew the Lease
     for two (2) terms of five years each.

III. BASIC RENTAL PAYMENTS

          3.1  Basic Annual Rent. Tenant agrees to pay to Landlord as basic
     annual rent (the "Basic Annual Rent") at such place as Landlord may
     designate, without prior demand therefore and without any deduction or set
     off whatsoever, the sum of Two Million Eight Hundred Forty Nine Thousand
     Three Hundred Forty and 00/100 Dollars ($2,849,340.00). Said Basic Annual
     Rent shall be due and payable in twelve (12) equal monthly installments to
     be paid in advance on or before the first day of each calendar month during
     the term of the Lease. The Basic Annual Rent shall escalate at the
     beginning of the 2/nd/ lease year and

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     each year thereafter using a 3% annually compounded rate. Simultaneously
     with the execution hereof, Tenant has paid to Landlord the first month's
     rent, receipt whereof is hereby acknowledged, subject to collection,
     however, if made by check. In the event the Commencement Date occurs on a
     day other than the first day of a calendar month, then rent shall be paid
     on the Commencement Date for the initial fractional calendar month prorated
     on a per-diem basis (based upon a thirty (30) day month). The amounts of
     Basic Annual Rent set forth above shall be adjusted upon completion of the
     building pursuant to changes resulting from the application of the Rent
     Formula (Exhibit G).

          3.2  Additional Monetary Obligations. Tenant shall also pay as rental
     (in addition to the Basic Annual Rent) all other sums of money as shall
     become due and payable by Tenant to Landlord under this Lease. Landlord
     shall have the same remedies in the case of a default in the payment of
     said other sums of money as are available to Landlord in the case of a
     default in the payment of one or more installments of Basic Annual Rent.

          3.3  Basic Annual Rent During Renewal Term. The Basic Annual Rent
     shall escalate by 3% at the start of each year of the renewal term(s).

IV.  ADDITIONAL RENT

          4.1  Definitions. It is the intent of both parties that the Basic
     Annual Rent herein specified shall be absolutely net to the Landlord
     throughout the term of this Lease, and that all costs, expenses and
     obligations relating to the Building, Property and/or Leased Premises which
     may arise or become due during the term shall be paid by Tenant in the
     manner hereafter provided.

               For purposes of this Part IV and the Lease in general, the
     following words and phrases shall have the meanings set forth below:

          (a)  "Basic Costs" shall mean all actual costs and expenses incurred
     by Landlord in connection with the ownership, operation, management and
     maintenance of the Building and Property and related improvements located
     thereon (the "Improvements"), including, but not limited to, all expenses
     incurred by Landlord as a result of Landlord's compliance with any and all
     of its obligations under this Lease (or under similar leases with other
     tenants) other than the performance by Landlord of its work under Section
     2.3 of this Lease or similar provisions of leases with other tenants. In
     explanation of the foregoing, and not in limitation thereof, Basic Costs
     shall include: all real and personal property taxes and assessments
     (whether general or special, known or unknown, foreseen or unforeseen) and
     any tax or assessment levied or charged in lieu thereof, whether assessed
     against Landlord and/or Tenant and whether collected from Landlord and/or
     Tenant; South Jordan City Special Improvement District assessments; snow
     removal, trash removal, common area utilities, Utah Power & Light Company

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     Finanswer service charge, cost of equipment or devices used to conserve or
     monitor energy consumption, supplies, insurance, license, permit and
     inspection fees, cost of services of independent contractors, cost of
     compensation (including employment taxes and fringe benefits) of all
     persons who perform regular and recurring duties connected with day-to-day
     operation, maintenance, repair, and replacement of the Building, its
     equipment and the adjacent walk and landscaped area (including, but not
     limited to janitorial, scavenger, gardening, security, parking, elevator,
     painting, plumbing, electrical, mechanical, carpentry, window washing,
     structural and roof repairs and reserves, signing and advertising), but
     excluding persons performing services not uniformly available to or
     performed for substantially all Building tenants; and rental expense or a
     reasonable allowance for depreciation of personal property used in the
     maintenance, operation and repair of the Building. The foregoing
     notwithstanding, Basic Costs shall not include depreciation on the Building
     and Improvements; amounts paid toward principal or interest of loans of
     Landlord; nor "Direct Costs" as defined in Section 4.1(b) below.

          (b)  "Direct Costs" shall mean all actual costs and expenses incurred
     by Landlord in connection with the operation, management, maintenance,
     replacement, and repair of tenants' premises, including but not limited to
     janitorial services, maintenance, repairs, supplies, utilities, heating,
     ventilation, air conditioning, and property management fees, which property
     management fees shall be equal to four and 23/100 percent (4.23%) of the
     Basic Annual Rent. Tenant shall pay its share of Direct Costs of the
     Building. The amount of Tenant's Direct Costs shall be obtained by
     multiplying the expenses in question by a fraction, the numerator of which
     shall be the gross rentable square footage of the premises, and the
     denominator of which shall be the average rentable square feet leased and
     occupied by tenants of the Building during any given year in which the
     Direct Costs are then being calculated.

               Landlord will cause meters to be installed to measure actual
     electrical and ventilation/air conditioning usage by Tenant. Tenant shall
     pay Landlord monthly, as additional rent, the estimated costs of such
     metered electrical and ventilation/air conditioning usage. At least
     annually, Landlord shall reconcile the estimated costs of these metered
     services and shall show the actual costs and shall apply any appropriate
     credits or debits from the previous year's actual usage. All such billings
     will be computed at the actual kilowatt hourly rate billed to the Landlord
     by the public utility companies for each respective period, including
     taxes, but without any additional mark-up or service charges. The costs of
     ventilation/air conditioning usage by Tenant shall be equitably apportioned
     among all building tenants according to usage. Tenant shall promptly pay to
     Landlord the amount due on each monthly billing received for and throughout
     the term of the Lease.

          (c)  "Estimated Costs" shall mean the projected amount of Tenant's
     Direct Costs and Tenant's Proportionate Share of Basic Costs, excluding the
     costs of electricity and ventilation/air conditioning provided to the
     Buildings, if separately metered. The Estimated Costs for the calendar year
     in which the Lease commences are $950,000 excluding the costs of
     electricity and ventilation/air conditioning to the

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     Buildings, and are not included in the Basic Annual Rent. The Estimated
     Costs are based on 200,000 rentable square feet and a $4.75 per rentable
     square foot cost. If the Estimated Costs as of the date Tenant takes
     occupancy are greater than Estimated Costs at the time this Lease is
     executed, the Estimated Costs shall be increased to equal the Estimated
     Costs as of the date of Tenant's occupancy.

          (d)  "Tenant's Proportionate Share of Basic Costs" shall mean the
     percentage of the Estimated Costs provided to the Buildings derived by
     multiplying the Estimated Costs times the Tenant's Proportionate Share.

          4.2  Report of Basic Costs and Statement of Estimated Costs.

          (a)  After the expiration of each calendar year occurring during the
     term of this Lease, Landlord shall furnish Tenant a written statement of
     the Tenant's Proportionate Share of Basic Costs and the Tenant's Direct
     Costs occurring during the previous calendar year. The written statement
     shall specify the amount by which Tenant's Direct Costs and Proportionate
     Share of Basic Costs exceeds or is less than the amounts paid by Tenant
     during the previous calendar year pursuant to Section 4.3(b) below.

          (b)  At the same time specified in Section 4.2(a) above, Landlord
     shall furnish Tenant a written statement of the Estimated Costs for the
     then current calendar year.

          4.3  Payment of Additional Rent. Tenant shall pay as additional rent
     ("Additional Rent") Tenant's Direct Costs and Tenant's Proportionate Share
     of Basic Costs. The Additional Rent shall be paid as follows:

          (a)  With each monthly payment of Basic Annual Rent due pursuant to
     Section 3.1 above, Tenant shall pay to Landlord, without offset or
     deduction, one-twelfth (l/12th) of the Estimated Costs as defined in
     Section 4.1(c).

          (b)  Within thirty (30) days after delivery of the written statement
     referred to in section 4.2(a) above, Tenant shall pay to Landlord the
     amount by which Tenant's Direct Costs and Proportionate Share of Basic
     Costs, as specified in such written statements, exceed the aggregate of
     Estimated Costs actually paid by Tenant for the year at issue. Payments by
     Tenant shall be made pursuant to this Section 4.3(b) notwithstanding that a
     statement pursuant to Section 4.2(a) is furnished to Tenant after the
     expiration of the term of this Lease.

          (c)  If the annual statement of costs indicates that the Estimated
     Costs paid by Tenant pursuant to Section 4.3(a) above for any year exceeded
     Tenant's Direct Costs and Tenant's Proportionate Share of Basic Costs for
     the same year, Landlord, at Tenant's election, shall either (i) promptly
     pay the amount of such

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     excess to Tenant, or (ii) apply such excess against the next installment of
     Basic Annual Rental or Additional Rent due hereunder.

          4.4  Exclusions. Notwithstanding anything to the contrary contained
     herein, Basic Costs and Direct Costs shall not include: 1) original
     construction costs of the Building; 2) interest and amortization of funds
     borrowed by Landlord, whether secured or unsecured; 3) reserves for
     repairs, maintenance and replacements (unless approved by Tenant); 4) costs
     or expenses associated with leasing space in the Building or the sale of
     any interest in the Building, including, without limitation, advertising
     and marketing, commissions or any amounts paid for or on behalf of a tenant
     such as space planning, moving costs, rental and other tenant concessions;
     5) ground rents; 6) salaries, wages or other compensations paid to
     employees of any property management organization whose salaries are deemed
     covered by a management fee (i.e., property manager, accounting or clerical
     personnel); 7) amounts paid to any partners, shareholder, officer or
     director of Landlord, for salary or other compensation; 8) repairs or other
     work occasioned by fire, windstorm, or other casualty covered by building
     insurance; 9) expenses for repairs, replacements or improvements arising
     from the initial construction of the Building to the extent such expenses
     are either (i) reimbursed to Landlord by virtue of warranties from
     contractors or suppliers or (ii) result by reason of deficiencies in design
     or workmanship except conditions resulting from ordinary wear and tear; 10)
     Landlord's general overhead except to the extent it is expended in direct
     connection with management and operation of the Building of which the
     Leased Premises forms a part; 11) accounting or legal fees incurred in
     tenant disputes, or in procuring tenants, or for fees not related to the
     operation and maintenance of the Building but personal to Landlord; 12)
     advertising and promotional activities; 13) leasing commissions, attorney's
     fees, costs, and disbursements and other expenses incurred in connection
     with negotiations or disputes with tenant, other occupants, or prospective
     tenant or other occupants; 14) all costs shall be "net" only and shall be
     reduced by the amount of insurance, condemnation awards or other
     reimbursement, recoupment, payment, discount, warrantee, guarantee or
     allowance received by Landlord; 15) costs of renovating or otherwise
     improving space for new tenants or in renovating space vacated by any
     tenant or any other work which Landlord performs for any tenant; 16) costs
     relating to maintaining Landlord's existence, either as a corporation,
     partnership or other entity, such as trustee's fees, annual fees,
     partnership organization or administration expenses, deed recordation
     expenses, legal and accounting fees (other than with respect to Building
     operations); 17) capital improvements to the Building, except those items
     that need replacement due to Tenant's occupancy of the Leased Premises; 18)
     depreciation of the Building or any equipment, machinery, fixtures or
     improvements therein; 19) any costs related to Landlord's compliance in the
     Building common areas with the Americans with Disabilities Act; 20) costs
     incurred due to Landlord's violation of any term or condition of this Lease
     or any law, ordinance or governmental rule or regulation affecting the
     Building; 21) costs for acquisitions of sculpture, paintings or other
     objects of art, unless approved by Tenant; 22) title insurance, automobile
     insurance, key man and other life insurance, long-term disability insurance
     and health, accident and sickness insurance, excepting only group plans
     providing reasonable benefits to persons of the grade of building manager
     and below employed in the operation and management of the Building
     (provided that the cost of

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     insurance with respect to any such employee dividing his or her time
     between the Building and any other buildings shall be apportioned pro rate
     among all such buildings); 23) any expense that would not be considered a
     normal maintenance or operating expense; 24) any inheritance, estate,
     succession, transfer, gift tax or capital levy shall not be included in
     Real Estate Taxes; and 25) costs of any items for which Landlord receives
     reimbursement from insurance proceeds or a third party. Insurance proceeds
     shall be excluded from Operating Expenses in the year in which they are
     received, except that any deductible amount under any insurance policy
     shall be included within Operation Expenses.

          4.5  Resolution of Disagreement. Every statement given by Landlord
     pursuant to Section 4.2 shall be conclusive and binding upon Tenant unless
     within ninety (90) days after the receipt of such statement Tenant shall
     notify Landlord that it disputes the correctness thereof, specifying the
     particular respects in which the statement is claimed to be incorrect. If
     such dispute shall not have been settled by agreement, the parties hereto
     shall submit the dispute to arbitration within ninety (90) days after
     Tenant's receipt of such statement. Pending the determination of such
     dispute by agreement or arbitration as aforesaid, Tenant shall, within
     thirty (30) days after receipt of such statement, pay Additional Rent in
     accordance with Landlord's statement, and such payment shall be without
     prejudice to Tenant's position. If the dispute shall be determined in
     Tenant's favor, Landlord shall forthwith pay Tenant the amount of Tenant's
     overpayment of rents resulting from compliance with Landlord's statement.
     Landlord agrees to grant Tenant reasonable access to Landlord's books and
     records for the purpose of verifying operating expenses incurred by
     Landlord.

          4.6  Landlord Duty to Keep Books for Audit. Landlord agrees to keep
     accurate books and records reflecting Basic Costs and Direct Costs and to
     make such records, and reasonable supporting detail available for
     examination during normal business hours upon reasonable notice by Tenant
     and its representatives; provided that any such examination or audit shall
     be at Tenant's sole cost and expense, unless the audit discloses a
     discrepancy of 10% or more per line item then Landlord shall be responsible
     for the cost of the audit. In addition, if the audit discloses any
     overpayment by Tenant, the overpayment shall be promptly repaid to Tenant
     together with interest at the rate of two percent (2%) above prime per
     annum.

               Landlord shall, at all times during the entire term and its
     options, operate, manage, maintain and repair the Building in a lawful,
     efficient and businesslike manner in accordance with sound property
     management practices consistent with comparable first class buildings in
     the area. Landlord shall not expend more than the reasonable and fair
     market value for any goods, services, labor or materials purchased or
     provided by Landlord in connection with the management, operation
     maintenance and repair of the Building. Tenant shall only be liable for
     Basic Costs and Direct Costs incurred by Tenant which are attributable to
     the term of this Lease or such time as Tenant occupies the Leased Premises,
     whichever is greater.

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          4.7  Limitations. Nothing contained in this Part IV shall be construed
     at any time so as to reduce the monthly installments of Basic Annual Rent
     payable hereunder below the amount set forth in Section 3.1 of this Lease.

V.   SECURITY DEPOSIT

          5.1  Deposit. Intentionally Deleted.

          5.2  Default. Intentionally Deleted

VI.  USE

          6.1  Use of Leased Premises. The Leased Premises shall be used and
     occupied by Tenant for general office purposes only which shall include
     computer room, training, conferences, and direct marketing and for no other
     purpose whatsoever without the prior written consent of Landlord.

          6.2  Prohibition of Certain Activities or Uses. The Tenant shall not
     do or permit anything to be done in or about, or bring or keep anything in
     the Leased Premises which is prohibited by this Lease or will, in any way
     or to any extent:

          (a)  Adversely affect any fire, liability or other insurance policy
     carried with respect to the Building, the Improvements or any of the
     contents of the Building (except with Landlord's express written
     permission, which will not be unreasonably withheld, but which may be
     contingent upon Tenant's agreement to bear any additional costs, expenses
     or liability for risk that may be involved).

          (b)  Obstruct or interfere with any right of any other tenant or
     occupant of the Building or injure or annoy such persons;

          (c)  Conflict with or violate any law, statute, ordinance, rule,
     regulation or requirement of any governmental unit, agency or authority
     (whether existing or enacted as promulgated in the future, known or
     unknown, foreseen or unforeseen).

          (d)  Adversely overload the floors or otherwise damage the structural
     soundness of the Leased Premises or Building, or any part thereof (except
     with Landlord's express written permission, which will not be unreasonably
     withheld, but which may be contingent upon Tenant's agreement to bear any
     additional costs, expenses or liability for risk that may be involved).

          6.3  Affirmative Obligations with Respect to Use.

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          (a)  Tenant will comply with all governmental laws, ordinances,
     regulations, and requirements, now in force or which hereafter may be in
     force, of any lawful governmental body or authorities having jurisdiction
     over the Leased Premises, will keep the Leased Premises and every part
     thereof in a clean, neat, and orderly condition, free of objectionable
     noise, odors, or nuisances, will in all respects and at all times fully
     comply with all health and policy regulations, and will not suffer, permit,
     or commit any waste.

          (b)  At all times during the term hereof, Tenant shall, at Tenant's
     sole cost and expense, comply with all statutes, ordinances, laws, orders,
     rules, regulations and requirements of all applicable federal, state,
     county, municipal and other agencies or authorities, now in effect or which
     may hereafter become effective, which shall impose any duty upon Landlord
     or Tenant with respect to the use, occupation or alterations of the Leased
     Premises (including, without limitation, all applicable requirements of the
     Americans with Disabilities Act of 1990 and all other applicable laws
     relating to people with disabilities, and all rules and regulations which
     may be promulgated thereunder from time to time and whether relating to
     barrier removal, providing auxiliary aids and services or otherwise) and
     upon request of Landlord shall deliver evidence thereof to Landlord.

          6.4  Suitability. Tenant acknowledges that except as expressly set
     forth in this Lease, neither Landlord nor any other person has made any
     representation or warranty with respect to the Leased Premises or any other
     portion of the Building, and that no representation has been made or relied
     on with respect to the suitability of the Leased Premises or any other
     portion of the Building or Improvements for the conduct of Tenant's
     business. The Leased Premises, Building and Improvements (and each and
     every part thereof) shall be deemed to be in satisfactory condition subject
     to the "punch list" prepared at Substantial Completion of the Building and
     the Leased Premises. Landlord shall be responsible for correcting any
     latent defects during the two (2) year warranty period following Tenant
     occupancy, normal wear and tear excepted.

          6.5  Taxes. Tenant shall pay all taxes, assessments, charges, and fees
     which during the term hereof may be imposed, assessed or levied by any
     governmental or public authority against or upon Tenant's use of the Leased
     Premises or any personal property or fixture kept or installed therein by
     Tenant and on the value of leasehold improvements to the extent that the
     same exceed Building allowances.

VII. UTILITIES AND SERVICE

          7.1  Obligation of Landlord. During the term of this Lease the
     Landlord agrees to cause to be furnished to the Building 24 hours per day,
     365 days per year the following utilities and services, the cost and
     expense of which shall be included in Basic and/or Direct Costs:

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          (a)  Electricity, water, gas and sewer service.

          (b)  Telephone connection, but not including telephone stations and
     equipment (it being expressly understood and agreed that Tenant shall be
     responsible for the ordering and installation of telephone lines and
     equipment which pertain to the Leased Premises).

          (c)  Elevator service.

          7.2  Obligation of Landlord. During the term of this Lease the
     Landlord agrees to cause to be furnished to the Leased Premises during
     customary business hours (7:00 a.m. to 6:00 p.m. Monday through Friday and
     8:00 a.m. to l:00 p.m. on Saturday) and during generally recognized
     business days the following services, the cost and expense of which shall
     be included in Basic and/or Direct Costs:

          (a)  Heat and air-conditioning to comply with ASHRAE 1989, so that the
     temperature does not exceed 80 (Degrees) F in summer nor fall below
     68(Degrees) F in winter. The parties agree and understand that the above
     heat and air-conditioning will be provided Monday through Friday from 7:00
     a.m. to 6:00 p.m. and Saturday from 8:00 a.m. to 1:00 p.m.

          (b)  Janitorial service in accordance with specifications attached
     hereto as Exhibit "H".

          (c)  Security (including the lighting of common halls, stairways,
     entries and restrooms) to such extent as is usual and customary in similar
     buildings in Salt Lake County, Utah.

          (d)  Snow removal service.

          (e)  Landscaping and groundskeeping service.

          7.3  Tenant's Obligations. Tenant shall arrange for and shall pay the
     entire cost and expense of all telephone stations, equipment and use
     charges, electric light bulbs (but not fluorescent bulbs used in fixtures
     originally installed in the Leased Premises) and all other materials and
     services not expressly required to be provided and paid for pursuant to the
     provisions of Section 7.1 above.

          7.4  Additional Limitations.

          (a)  Tenant will not, without the written consent of Landlord, which
     consent shall not be unreasonably withheld, use any apparatus or device on
     the Leased Premises (including but without limitation thereto, electronic
     data processing machines, punch card machines or machines using current in
     excess of 110 volts) which will in any way or to any extent increase the
     amount of electricity or water usually furnished or supplied for use on the
     Leased Premises for the use

                                      12
<PAGE>

     designated in Section 6.1 above, nor connect with electrical current,
     except through existing electrical outlets in the Leased Premises, or water
     pipes, any apparatus or device, for the purposes of using electric current
     or water.

          (b)  If Tenant shall require water or electric current in excess of
     that usually furnished or supplied for use of the Leased Premises, or for
     purposes other than those designated in Section 6.l above, Tenant shall
     first procure the consent of Landlord for the use thereof. If the Building
     is a multi-tenant building, the Landlord's consent may require a water
     meter or electric current meter to be installed in the Leased Premises, so
     as to measure the amount of water and/or electric current consumed for any
     such use. The cost of such meters and of installation maintenance, and
     repair thereof shall be paid for by Tenant and Tenant agrees to pay
     Landlord promptly upon demand by Landlord for all such water and electric
     current consumed as shown by said meters, at the rates charged for such
     service by the City in which the Building is located or the local public
     utility, as the case may be, furnishing the same, plus any additional
     expense incurred in keeping account of the water and electric current so
     consumed.

          (c)  If and where heat generating machines devices are used in the
     Leased Premises which affect the temperature otherwise maintained by the
     air conditioning system, Landlord reserves the right to install additional
     or supplementary air conditioning units for the Leased Premises, and the
     entire cost of installing, operating, maintaining and repairing the same
     shall be paid by Tenant to Landlord promptly after demand by Landlord.

          7.5  Limitation on Landlord's Liability. Landlord shall not be liable
     for and Tenant shall not be entitled to terminate this Lease or to
     effectuate any abatement or reduction of rent by reason of Landlord's
     failure to provide or furnish any of the foregoing utilities or services if
     such failure was reasonably beyond the control of Landlord. In no event
     shall Landlord be liable for loss or injury to persons or property,
     however, arising or occurring in connection with or attributable to any
     failure to furnish such utilities or services even if within the control of
     Landlord. Notwithstanding anything to the contrary contained herein, if
     Tenant cannot reasonably use any portion of the Leased Premises for
     Tenant's normal business operations by reason of any interruption in
     services within Landlord's reasonable control and such condition exists for
     three (3) consecutive business days, then Tenant's rent shall be equitably
     abated from the date of such occurrence for that portion of the Leased
     Premises that Tenant is unable to occupy until such service is restored and
     Tenant is able to use the Leased Premises.

               Notwithstanding the above, in the event Landlord needs to perform
     work in the Leased Premises which will interfere with the Tenant's normal
     course of business, then Landlord shall use its best efforts to perform
     such work and clean up the area after Tenant's business hours and prior to
     the Tenant's next day of business.

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<PAGE>

VIII.  MAINTENANCE AND REPAIRS; ALTERATIONS; ACCESS

          8.1  Maintenance and Repairs by Landlord. Landlord shall maintain in
     good order, condition and repair the Building, Base Building Systems, and
     Improvements in accordance with Class A office buildings in suburban Salt
     Lake City, except the Leased Premises and those other portions of the
     Building leased, rented or otherwise occupied by persons not affiliated
     with the Landlord. Base Building Systems includes, but is not limited to,
     the Building enclosure, the roof, HVAC system, plumbing, sprinklers, fire
     alarm, elevators, and electrical systems (which may be routed through the
     Leased Premises). Landlord shall supply normal janitorial and cleaning
     services reasonably required to keep the Leased Premises and the Building
     and Improvements in a clean, sanitary and orderly condition. The cost and
     expense of this maintenance and repair by Landlord shall be included in
     Direct and/or Basic Costs.

          8.2  Maintenance and Repairs by Tenant. Tenant, at Tenant's sole cost
     and expense and without prior demand being made, shall maintain the Leased
     Premises in good order, condition and repair, and will be responsible for
     the painting, carpeting or other interior design work of the Leased
     Premises beyond the initial construction phase as specified in Section 2.3
     and Exhibit "C" and "E" of the Lease and shall maintain all equipment and
     fixtures installed by Tenant. If repainting or recarpeting is required and
     authorized by Tenant, the cost for such are the sole obligation of Tenant
     and shall be paid for by Tenant immediately following the performance of
     said work and a presentation of an invoice for payment.

          8.3  Alterations. Except as set forth on Exhibit "C" attached hereto,
     Tenant shall not make or cause to be made any alterations, additions or
     improvements or install or cause to be installed any fixtures, signs, floor
     coverings, interior or exterior lighting, plumbing fixtures, or shades or
     awnings, or make any other changes to the Leased Premises without first
     obtaining Landlord's written approval, which approval shall not be
     unreasonably withheld. Tenant shall present to the Landlord plans and
     specifications for such work at the time approval is sought. In the event
     Landlord consents to the making of any alterations, additions, or
     improvements to the Leased Premises by Tenant, the same shall be made by
     Tenant at Tenant's sole cost and expense. All such work with respect to any
     alterations, additions, and changes shall be done in a good and workmanlike
     manner and diligently prosecuted to completion such that, except as
     absolutely necessary during the course of such work, the Leased Premises
     shall at all times be a complete operating unit. Any such alterations,
     additions, or changes shall be performed and done strictly in accordance
     with all laws and ordinances relating thereto. In performing the work or
     any such alterations, additions, or changes, Tenant shall have the same
     performed in such a manner as not to obstruct access to any portion of the
     Building. Any alterations, additions, or improvements to or of the Leased
     Premises, including, but not limited to, wallcovering, paneling, and built-
     in cabinet work, but excepting movable furniture and equipment, shall at
     once become a part of the realty and shall be surrendered with the Leased
     Premises unless Landlord otherwise elects at the end of the term hereof.
     Notwithstanding the above, decorating items shall not require notice to, or
     consent of Landlord. In the event Landlord does not respond

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<PAGE>

     to Tenant's written request for consent within ten (10) days, consent shall
     be deemed given. Landlord shall not charge any supervisory fee for
     alterations.

          8.4  Landlord's Access to Leased Premises. Landlord shall have the
     right to place, maintain, and repair all utility equipment of any kind in,
     upon, and under the Leased Premises as may be necessary for the servicing
     of the Leased Premises and other portion of the Building. Landlord shall
     upon providing adequate notice to Tenant, also have the right to enter the
     Leased Premises at all times to inspect or to exhibit the same to
     prospective purchasers, mortgagees, tenants, and lessees, and to make such
     repairs, additions, alterations, or improvements as Landlord may deem
     desirable. Landlord shall be allowed to take all material upon said Leased
     Premises that may be required therefor without the same constituting an
     actual or constructive eviction of Tenant in whole or in part and the rents
     reserved herein shall in no wise abate while said work is in progress by
     reason of loss or interruption of Tenant's business or otherwise, and
     Tenant shall have no claim for damages. During the three (3) months prior
     to expiration of this Lease or of any renewal term, Landlord may place upon
     the Leased Premises "For Lease" or "For Sale" signs which Tenant shall
     permit to remain thereon.

IX.  ASSIGNMENT

               9.1  Assignment Prohibited. Tenant shall not transfer, assign,
     mortgage, or hypothecate this Lease, in whole or in part, or permit the use
     of the Leased Premises by any person or persons other than Tenant, or
     sublet the Leased Premises, or any part thereof, without the prior written
     consent of Landlord in each instance, which consent shall not be
     unreasonably withheld, provided sufficient information is provided to
     Landlord to accurately represent the financial condition of those to whom
     this Lease will be transferred, assigned, mortgaged, or hypothecated. Such
     prohibition against assigning or subletting shall include any assignment or
     subletting by operation of law. Notwithstanding anything to the contrary
     contained herein, Tenant may assign this lease or sublet all or any portion
     of the Leased Premises, with Landlord's written consent, which shall not be
     unreasonably withheld, to any corporation or other business entity which
     (1) controls, is controlled by, or is under common control with Tenant or
     (2) is a successor corporation related to Tenant by merge, consolidation,
     non-bankruptcy reorganization or government action (herein referred to as a
     "Related Corporation") for any of the purposes permitted to Tenant, subject
     however to compliance with Tenant's obligations under this lease. Any such
     assignment or subletting shall not be deemed to relieve, release, impair or
     discharge any of Tenant's obligations thereunder. For the purposes hereof,
     "control" shall be deemed to mean ownership of not less than fifty percent
     (50%) of all of the voting stock of such corporation or not less than fifty
     percent (50%) of all of the legal and equitable interest in any other
     business entities. The sale of Tenant's capital stock through any public
     exchange shall not be deemed a sublease, assignment or transfer of this
     Lease.

          9.2  Consent Required:

                                      15
<PAGE>

          (a)  Any assignment or subletting without Landlord's consent shall be
     void, and shall constitute a default hereunder which, at the option of
     Landlord, shall result in the termination of this Lease or exercise of
     Landlord's other remedies hereunder. Consent to any assignment or
     subletting shall not operate as a waiver of the necessity for consent to
     any subsequent assignment or subletting, and the terms of such consent
     shall be binding upon any person holding by, under, or through Tenant.

          (b)  Landlord shall have no obligation to consent to the proposed
     sublease or assignment if the proposed sublessee or assignee or its
     business is or may be subject to compliance with additional requirements of
     the law, including any related rules or regulations, commonly known as the
     "Americans with Disabilities Act of l990" or similar state or local laws
     relating to persons with disabilities beyond those requirements which are
     applicable to the tenant desiring to so sublease or assign, unless Tenant
     pays the cost of the compliance with such additional rules or regulations.

          9.3  Landlord's Right in Event of Assignment If this Lease is assigned
     or if the Leased Premises or any portion thereof are sublet or occupied by
     any person other than the Tenant, Landlord may collect rent and other
     charges from such assignee or other party, and apply the amount collected
     to the rent and other charges reserved hereunder, but such collection shall
     not constitute consent or waiver of the necessity of consent to such
     assignment, subleasing, or other transfer, nor shall such collection
     constitute the recognition of such assignee, sublessee, or other party as
     the Tenant hereunder or a release of Tenant from the further performance of
     all of the covenants and obligations, including obligation to pay rent, of
     Tenant herein contained. In the event that Landlord shall consent to a
     sublease or assignment hereunder, Tenant shall pay to Landlord reasonable
     fees, not to exceed $100.00, incurred in connection with processing of
     documents necessary to the giving of such consent.

          9.4  Sublease and Assignments Rights The above paragraphs of this
     Section 9 not withstanding, Tenant shall have the right to sublet or assign
     all or part of the Leased Premises without Landlord's prior consent to any
     and all affiliates, subsidiaries, sister companies, or any entity in which
     Tenant or Tenant's parent company has a controlling interest, provided
     Tenant is not relieved of its obligations under the lease.

               For non-affiliated companies, Landlord shall not unreasonably
     withhold, condition or delay the approval of any and all proposed sublease
     or assignment, provided proposed sublessor has the same or better financial
     condition as Tenant. Tenant shall retain any and all profits from a
     sublease or assignment. Tenant's foregoing Rights of Sublease and
     Assignment shall apply to the initial lease term and any renewal terms.

          9.5  Right to Sublet and Retain Profit. Any profits from subleasing
     shall be retained by Tenant. Landlord may not withhold its consent on the
     grounds that the proposed assignee or sublessee is an occupant of the
     building or office park. Landlord shall

                                      16
<PAGE>

     provide sublessee and/or assignees all rights and services provided for in
     Tenant's Lease. Landlord shall not be entitled to any sublease profits nor
     shall Landlord have a right of recapture.

X.   INDEMNITY

          10.1  Indemnification By Landlord and Tenant.  From and after the
     Commencement Date, Landlord and/or Tenant shall defend and indemnify the
     other and save the other harmless from and against any and all suits,
     actions, damage and claims, liability and expense in connection with loss
     of life, bodily or personal injury, or property damage arising from or out
     of any occurrence in, upon, at or from the Leased Premises, or occasioned
     wholly or in part by any act or omission of the other or its agents,
     contractors, employees, servants, invitees, licensees or concessionaires.
     All insurance policies carried by Tenant and/or Landlord shall include a
     waiver of subrogation endorsement which specifies that the insurance
     carrier(s) will waive any right of subrogation against Tenant and/or
     Landlord arising out of any insurance claim.

          10.2  Release of Landlord.  Landlord shall not be responsible or
     liable at any time for any loss or damage to Tenant's personal property or
     to Tenant's business, including any loss or damage to either the person or
     property of Tenant that may be occasioned by or through the acts or
     omissions of persons occupying adjacent, connecting, or adjoining space.
     Tenant shall store its property in and shall use and enjoy the Leased
     Premises and all other portions of the Building and Improvements at its own
     risk, and hereby releases Landlord, to the full extent permitted by law,
     from all claims of every kind resulting in loss of life, personal or bodily
     injury, or property damage.

          10.3  Notice.  Tenant shall give prompt notice to Landlord in case of
     fire or accidents in the Leased Premises or in the Building of which the
     Leased Premises are a part or of defects therein or in any fixtures or
     equipment.

          10.4  Litigation.  In case Landlord or Tenant, without fault on its
     part, shall be made a party to any litigation commenced by or against
     Tenant or Landlord, then Tenant or Landlord shall protect and hold the
     other party harmless and shall pay all costs, expenses, and reasonable
     attorneys' fees.

XI.  INSURANCE

          11.1  Insurance on Tenant's Personal Property and Fixtures.  At all
     times during the term of this Lease, Tenant shall keep in force at its sole
     cost and expense, hazardous insurance with special causes of loss including
     theft coverage, insuring against fire and extended coverage risks
     (including vandalism and malicious mischief) in companies acceptable to
     Landlord, equal to the replacement cost of Tenant's fixtures, furnishings,
     equipment, and contents upon the Leased Premises and all improvements or
     additions made

                                      17
<PAGE>

     by Tenant to the Leased Premises. The Landlord shall be named as a loss
     payer on all such policies.

          11.2  Property Coverage.  Landlord shall obtain and maintain in force
     "All Risk" insurance, including vandalism and malicious mischief, required
     to cover any loss or destruction that the Leased Premises herein may
     experience during the Lease period and any extension thereof, and
     including, at Landlord's discretion, flood and earthquake coverage if
     commercially available at reasonable rates.  Such insurance shall also
     include coverage against loss of rents. Tenant shall pay Landlord, as a
     separate consideration, all reasonable costs to purchase the insurance
     called for in this paragraph on the Leased Premises.

          11.3  Liability Insurance.  Tenant shall, during the entire term
     hereof, keep in full force and effect a policy of public liability and
     property damage insurance with respect to the Leased Premises and the
     business operated by Tenant in the Leased Premises, with a combined single
     limit for personal or bodily injury and property damage of not less than
     $1,000,000.00.  The policy shall name Landlord, any person, firms, or
     corporations designated by Landlord, and Tenant as insureds, and shall
     contain a clause that the insurer will not cancel or materially change the
     insurance pertaining to the Leased Premises without first giving Landlord
     ten (10) days' written notice. Tenant shall at all times during the term
     hereof provide Landlord with evidence of current insurance coverage. All
     public liability, property damage, and other liability policies shall be
     written as primary policies, not contributing with coverage which Landlord
     may carry. All such policies shall contain a provision that Landlord,
     although named as an insured, shall nevertheless be entitled to recover
     under said policies for any loss occasioned to it, its servants, agents,
     and employees by reason of the negligence of Tenant. All such insurance
     shall specifically insure the performance by Tenant of the indemnity
     agreement as to liability for injury to or death of persons or injury or
     damage to property contained in Part X.

          11.4  Waiver of Subrogation.  Landlord and Tenant waive all rights to
     recover against each other, against any other tenant or occupant of the
     Building and against the officers, directors, shareholders, partners, joint
     venturers, employees, agents, customers, invitees or business visitors of
     each other or of any other tenant or occupant of the Building, for any loss
     or damage arising from any cause covered by any insurance carried by the
     waiving party, to the extent that such loss or damage is actually covered.

                No party shall have any right or claim against any of Landlord's
     agents for any property damage (whether caused by negligence or the
     condition of the Leased Premises or the Building or any part thereof) by
     way of subrogation or assignment, Tenant hereby waiving and relinquishing
     any such right.  Tenant shall obtain a valid certificate of insurance or
     similar document from its insurance company verifying this waiver of
     subrogation for that property that Tenant chooses to insure.  Landlord
     hereby waives and relinquishes any right or claim against Tenant from
     damages to the Leased Premises or Building by way of subrogation or
     assignment by Landlord.  At Tenant's request, Landlord

                                      18
<PAGE>

      shall obtain a valid certificate of insurance verifying this waiver of
      subrogation for that property Landlord chooses to insure.

          11.5  Lender.  Any mortgage lender interest in any part of the
      Building or Improvements may, at Landlord's option, be afforded coverage
      under any policy required to be secured by Tenant hereunder, by use of a
      mortgagee's endorsement to the policy concerned.

XII.  DESTRUCTION

      If the Leased Premises shall be partially damaged by any casualty insured
      against under any insurance policy maintained by Landlord, Landlord shall,
      upon receipt of the insurance proceeds, repair the Leased Premises and
      until repair is complete the Basic Annual Rent and Additional Rent shall
      be abated proportionately as to that portion of the Leased Premises
      rendered untenantable. Notwithstanding the foregoing, if: (a) the Leased
      Premises by reason of such occurrence are rendered wholly untenantable, or
      (b) the Leased Premises should be damaged as a result of a risk which is
      not covered by insurance, or (c) the Leased Premises should be damaged in
      whole or in part during the last six (6) months of the term or of any
      renewal hereof, or (d) the Leased Premises or the Building (whether the
      Leased Premises are damaged or not) should be damaged to the extent of
      fifty percent (50%) or more of the then-monetary value thereof, then and
      in any such events, Landlord may either elect to repair the damage or may
      cancel this Lease by notice of cancellation within sixty (60) days after
      such event and thereupon this Lease shall expire, and Tenant shall vacate
      and surrender the Leased Premises to Landlord. Tenant's liability for rent
      upon the termination of this Lease shall cease as of the day following
      Landlord's giving notice of cancellation. In the event Landlord elects to
      repair any damage, any abatement of rent shall end five (5) days after
      notice by Landlord to Tenant that the Leased Premises have been repaired.
      In the event Landlord elects to repair any damage, Landlord shall give
      notice to Tenant within sixty (60) days of the occurrence and such notice
      shall include a schedule for the completion of the repairs. Unless this
      Lease is terminated by Landlord, Tenant shall repair and refixture the
      interior of the Leased Premises in a manner and in at least a condition
      equal to that existing prior to the destruction or casualty and the
      proceeds of all insurance carried by Tenant on its property and fixtures
      shall be held in trust by Tenant for the purpose of said repair and
      replacement. During the repair of the Leased Premises, Landlord shall
      grant Tenant access to refixture and install furniture as needed.

XIII. CONDEMNATION

          13.1  Total Condemnation.  If the whole of the Leased Premises shall
      be acquired or taken by condemnation proceeding, then this Lease shall
      cease and terminate as of the date of title vesting in such proceeding.

          13.2  Partial Condemnation.  If any part of the Leased Premises shall
     be taken as aforesaid, and such partial taking shall render that portion
     not so taken unsuitable for the

                                      19
<PAGE>

     business of Tenant, then this Lease shall cease and terminate as aforesaid.
     If such partial taking is not extensive enough to render the Leased
     Premises unsuitable for the business of Tenant, then this Lease shall
     continue in effect except that the Basic Annual Rent and Additional Rent
     shall be reduced in the same proportion that the portion of the Leased
     Premises (including basement, if any) taken bears to the total area
     initially demised and Landlord shall, upon receipt of the award in
     condemnation, make all necessary repairs or alterations to the Building in
     which the Leased Premises are located, provided that Landlord shall not be
     required to expend for such work an amount in excess of the amount received
     by Landlord as damages for the part of the Leased Premises so taken.
     "Amount received by Landlord" shall mean that part of the award in
     condemnation which is free and clear to Landlord of any collection by
     mortgage lenders for the value of the diminished fee.

          13.3  Landlord's Option to Terminate.  If more than twenty percent
     (20%) of the Building shall be taken as aforesaid, Landlord may, by written
     notice to Tenant, terminate this Lease.  If this Lease is terminated as
     provided in this Section, rent shall be paid up to the day that possession
     is so taken by public authority and Landlord shall make an equitable refund
     of any rent paid by Tenant in advance.

          13.4  Award.  Tenant shall not be entitled to and expressly waives all
     claim to any condemnation award for any taking, whether whole or partial
     and whether for diminution in value of the leasehold or to the fee,
     although Tenant shall have the right, to the extent that the same shall not
     reduce Landlord's award, to claim from the condemnor, but not from the
     Landlord, such compensation as may be recoverable by Tenant in its own
     right for damages to Tenant's business and fixtures.

          13.5  Definition.  As used in this Part XIII the term "condemnation
     proceeding" means any action or proceeding in which any interest in the
     Leased Premises is taken for any public or quasi-public purpose by any
     lawful authority through exercise of eminent domain or right of
     condemnation or by purchase or otherwise in lieu thereof.

XIV. LANDLORD'S RIGHTS TO CURE

          14.1  General Right.  In the event of breach, default, or
     noncompliance hereunder by Landlord, Tenant shall, before exercising any
     right or remedy available to it, give Landlord written notice of the
     claimed breach, default, or noncompliance. If prior to its giving such
     notice Tenant has been notified in writing (by way of Notice of Assignment
     of Rents and Leases, or otherwise) of the address of a lender which has
     furnished any of the financing referred to in Part XV hereof, concurrently
     with giving the aforesaid notice to Landlord, Tenant shall, by certified
     mail, return receipt requested, transmit a copy thereof to such lender. For
     the thirty (30) days following the giving of the notice(s) required by the
     foregoing portion of this section (or such longer period of time as may be
     reasonably required to cure a matter which, due to its nature, cannot
     reasonably be rectified within thirty (30) days, Landlord shall have the
     right to cure the breach, default, or noncompliance involved. If Landlord
     has failed to cure a default within said period, any such lender shall

                                      20
<PAGE>

     have an additional thirty (30) days within which to cure the same or, if
     such default cannot be cured within that period, such additional time as
     may be necessary if within such thirty (30) day period said lender has
     commenced and is diligently pursuing the actions or remedies necessary to
     cure the breach default, or noncompliance involved (including, but not
     limited to, commencement and prosecution of proceedings to foreclose or
     otherwise exercise its rights under its mortgage or other security
     instrument, if necessary to effect such cure), in which event this Lease
     shall not be terminated by Tenant so long as such actions or remedies are
     being diligently pursued by said lender. Following the thirty (30) day
     notice period to Landlord, Tenant may perform such obligation(s) for or on
     behalf of the Landlord or make good any such default after three (3)
     business days written notice to Landlord, and any cost incurred by Tenant
     shall be repaid by Landlord to Tenant, within 30 days after receipt of an
     invoice.

          14.2  Mechanic's Lien.  Should any mechanic's or other lien be filed
     against the Leased Premises or any part thereof by reason of Tenant's acts
     or omissions or because of a claim against Tenant, Tenant shall cause the
     same to be canceled and discharged of record by bond or otherwise within
     ten (10) days after notice by Landlord.

XV.  FINANCING; SUBORDINATION

          15.1  Subordination.  Tenant acknowledges that it might be necessary
     for Landlord or its successors or assigns to secure mortgage loan financing
     or refinancing affecting the Leased Premises. Tenant also acknowledges that
     the lender interested in any given loan may desire that Tenant's interest
     under this Lease be either superior or subordinate to the mortgage then
     held or to be taken by said Lender. Accordingly, Tenant agrees that at the
     request of Landlord at any time and from time to time Tenant shall execute
     and deliver to Landlord an instrument, in form reasonably acceptable to
     Landlord, whereby Tenant subordinates its interest under this Lease and in
     the Leased Premises to any first mortgage or deed of trust covering the
     Leased Premises (a "Mortgage"); provided, however, that any such instrument
     or subordination executed by Tenant shall provide that so long as Tenant
     continues to perform all of its obligations under this Lease its tenancy
     shall remain in full force and effect notwithstanding Landlord's default in
     connection with the Mortgage concerned or any resulting foreclosure or sale
     or transfer in lieu of such proceedings. Tenant shall not subordinate its
     interests hereunder or in the Leased Premises to any lien or encumbrance
     other than the Mortgages described in and specified pursuant to this
     Section 15.1 without the prior written consent of Landlord and of the
     lender interested under each Mortgage then affecting the Leased Premises.
     Any such unauthorized subordination by Tenant shall be void and of no force
     or effect whatsoever.

          15.2  Amendment.  Tenant recognizes that Landlord's ability from time
     to time to obtain construction, acquisition, standing, and/or permanent
     mortgage loan financing for the Building and/or the Leased Premises may in
     part be dependent upon the acceptability of the terms of this Lease to the
     lender concerned.  Accordingly, Tenant agrees that from time to time it
     shall, if so requested by Landlord and if doing so will not substantially
     and adversely

                                      21
<PAGE>

     affect Tenant's economic interests hereunder join with Landlord in amending
     this Lease so as to meet the needs or requirements of any lender which is
     considering making or which has made a loan secured by a Mortgage affecting
     the Leased Premises.

          15.3  Attornment.  Any sale, assignment, or transfer of Landlord's
     interest under this Lease or in the Leased Premises including any such
     disposition resulting from Landlord's default under a Mortgage, shall be
     subject to this Lease and also Tenant shall attorn to Landlord's successor
     and assigns and shall recognize such successor or assigns as Landlord under
     this Lease, regardless of any rule of law to the contrary or absence of
     privity of contract.

          15.4  Financial Information.  As a condition to Landlord's acceptance
     of this Lease, Tenant shall provide financial information sufficient to
     verify to Landlord the financial condition of Tenant.  Tenant hereby
     represents and warrants that none of such information contains or will
     contain any untrue statement of material fact, nor will such information
     omit any material fact necessary to make the statements contained therein
     misleading or unreliable.

          15.5  Non-Disturbance Agreement.  Landlord shall obtain a Non-
     Disturbance Agreement for the benefit of Tenant from the holders of any
     current or future encumbrances against the Building, including but not
     limited to, mortgages, deeds or trusts and ground leases and any holders of
     interests superior to Tenant.  Such non-disturbance agreement shall be in
     form and content then used by such holder, but shall provide, among other
     things, that so long as Tenant is not in default in the payment of rent or
     any other material covenant or condition of this lease, (i) its rights as
     Tenant hereunder shall not be affected or terminated, (ii) its possession
     of the demised premises shall not be disturbed, (iii) no action or
     proceeding shall be commenced to remove or evict Tenant, and (iv) this
     lease shall continue in full force and effect notwithstanding the
     foreclosure of the mortgage prior to the expiration or termination of this
     lease.

XVI. EVENTS OF DEFAULT; REMEDIES OF LANDLORD

          16.1  Default by Tenant.  Upon the occurrence of any of the following
     events, Landlord shall have the remedies set forth in Section 16.2:

          (a)   Tenant fails to pay any installment of Basic Annual Rent or
     Additional Rent or any other sum due hereunder within ten (10) days after
     Tenant receives written notice of rent due.

          (b)   Tenant fails to perform any other term, condition, or covenant
     to be performed by it pursuant to this Lease within ten (10) days after
     written notice of such default shall have been given to Tenant by Landlord
     or, if cure would reasonably require more than ten (10) days to complete,
     if Tenant fails to commence

                                      22
<PAGE>

      performance within the ten (10) day period or fails diligently to pursue
      such cure to completion.

          (c)   Tenant or any guarantor of this Lease shall become bankrupt or
      insolvent or file any debtor proceedings or have taken against such party
      in any court pursuant to state or federal statute, a petition in
      bankruptcy or insolvency, reorganization, or appointment of a receiver or
      trustee; or Tenant petitions for or enters into an arrangement; or suffers
      this Lease to be taken under a writ of execution.

          16.2  Remedies.  In the event of any default by Tenant hereunder,
      Landlord may at any time, without waiving or limiting any other right or
      remedy available to it, terminate Tenant's rights under this Lease by
      written notice, reenter and take possession of the Leased Premises by any
      lawful means (with or without terminating this Lease), or pursue any other
      remedy allowed by law. Tenant agrees to pay to Landlord the cost of
      recovering possession of the Leased Premises, all costs of reletting, and
      all other costs and direct damages arising out of Tenant's default,
      including reasonable attorneys' fees. Notwithstanding any reentry, the
      liability of Tenant for the rent reserved herein shall not be extinguished
      for the balance of the Term, and Tenant agrees to compensate Landlord upon
      demand for any deficiency arising from reletting the Leased Premises at a
      lesser rent than applies under this Lease.

          16.3  Past Due Sums; Penalty.  If Tenant fails to pay, when the same
      is due and payable, any Basic Annual Rent, Additional Rent, or other sum
      required to be paid by it hereunder, such unpaid amounts shall bear
      interest from the due date thereof to the date of payment at a fluctuating
      rate equal to two percent (2%) per annum above the prime rate of interest
      charged by First Security Bank of Utah, Salt Lake City, Utah. In addition
      thereto, Tenant shall pay a sum of five percent (5%) of such unpaid
      amounts as a service fee. Notwithstanding the foregoing, however,
      Landlord's right concerning such interest and service fee shall be limited
      by the maximum amount which may properly be charged by Landlord for such
      purposes under applicable law. Twice each calendar year, Landlord shall
      grant Tenant a five (5) day grace period in case of late payment of Basic
      Annual Rent and Additional Rent.

XVII. PROVISIONS APPLICABLE AT TERMINATION OF LEASE

          17.1  Surrender of Premises.  At the expiration of this Lease, except
      for changes made by Tenant that were approved by Landlord, Tenant shall
      surrender the Leased Premises in the same condition, less reasonable wear
      and tear, as they were in upon delivery of possession thereto under this
      Lease and shall deliver all keys to Landlord. Before surrendering the
      Leased Premises, Tenant shall remove all of its personal property and
      trade fixtures and such property or the removal thereof shall in no way
      materially damage the Leased Premises, and Tenant shall be responsible for
      all costs, expenses and damages incurred in the removal thereof. If Tenant
      fails to remove its personal property and fixtures

                                      23
<PAGE>

       upon the expiration of this Lease, the same shall be deemed abandoned and
       shall become the property of Landlord.

          17.2  Removal of Trade Fixtures and Improvements.  At the expiration
       of the term, Tenant may remove movable walls, Tenant's trade fixtures,
       furniture, rooftop satellite equipment, A/V equipment (including screen,
       monitors, projectors) and Tenant's interior security system.

          17.3  Holding Over.  Any holding over after the expiration of the term
       hereof or of any renewal term with the prior written consent of Landlord
       shall be construed to be a tenancy from month to month. Tenant shall pay
       holdover rent equal to the then current Basic Annual Rent for three
       months, and thereafter the Basic Annual Rent shall be increased by 25%.

XVIII. ATTORNEYS' FEES

       In the event that at any time during the term of this Lease either
Landlord or the Tenant institutes any action or proceeding against the other
relating to the provisions of this Lease or any default hereunder, then the
unsuccessful party in such action or proceeding agrees to reimburse the
successful party for the reasonable expenses of such action including reasonable
attorneys' fees, incurred therein by the successful party.

XIX.   ESTOPPEL CERTIFICATE

          19.1  Landlord's Right to Estoppel Certificate  Tenant shall, within
      fifteen (15) days after Landlord's request, execute and deliver to
      Landlord a written declaration, in form and substance similar to Exhibit
      "D", in recordable form: (1) ratifying this Lease; (2) expressing the
      Commencement Date and expiration date hereof; (3) certifying that this
      Lease is in full force and effect and has not been assigned, modified,
      supplemented or amended (except by such writing as shall be stated); (4)
      that all conditions under this Lease to be performed by Landlord have been
      satisfied; (5) that there are no defenses or offsets against the
      enforcement of this Lease by the Landlord, or stating those claimed by
      Tenant; (6) the amount of advance rental, if any, (or none if such is the
      case) paid by Tenant; (7) the date to which rental has been paid; (8) the
      amount of security deposited with Landlord; and (9) such other information
      as Landlord may reasonably request. Landlord's mortgage lenders and/or
      purchasers shall be entitled to rely upon such declaration.

          19.2  Effect of Failure to Provide Estoppel Certificate.  Tenant's
      failure to furnish any Estoppel Certificate within fifteen (15) days after
      request therefor shall be deemed a default hereunder and moreover, it
      shall be conclusively presumed that: (a) this Lease is in full force and
      effect without modification in accordance with the terms set forth in the

                                      24
<PAGE>

      request; (b) that there are no unusual breaches or defaults on the part of
      the Landlord; and (c) no more than one (1) month's rent has been paid in
      advance.

XX.  COMMON AREAS

          20.1  Definition of Common Areas.  "Common Areas" means all areas,
     space, equipment and special services provided for the joint or common use
     and benefit of the tenants or occupants of the Building and Property or
     portions thereof, and their employees, agents, servants, patients,
     customers, and other invitees (collectively referred to herein as
     "Occupants") including without limitation, parking, access roads,
     driveways, retaining walls, landscaped areas, serviceways, loading docks,
     pedestrian walks; courts, stairs, ramps, and sidewalks; common corridors,
     rooms and restrooms; air-conditioning, fan, janitorial, electrical and
     telephone rooms or closets; and all other areas within the Building which
     are not specified for exclusive use or occupancy by Landlord or any tenant
     (whether or not they are leased or occupied).

          20.2  License to Use Common Areas.  The Common Areas shall be
     available for the common use of all Occupants and shall be used and
     occupied under a revocable license. If any such areas shall be changed or
     diminished, and provided the changes do not materially affect Tenant's
     ability to conduct its normal business in the Leased Premises, Landlord
     shall not be subject to any liability nor shall Tenant be entitled to any
     compensation or diminution or abatement of rent nor shall revocation or
     diminution of such areas be deemed constructive or actual eviction. All
     Common Areas shall be subject to the exclusive control and management of
     Landlord. Landlord shall have the right to construct, maintain, and operate
     lighting and other facilities on all said areas and improvements; to police
     the same; to change the area, level, location, and arrangement of parking
     areas and other facilities; to restrict parking by non-tenants; to close
     all or any portion of said areas or facilities to such extent as may be
     legally sufficient to prevent a dedication thereof or the accrual of any
     right to any person or the public therein; and to close temporarily any
     portion of the parking areas to discourage non-occupant parking. Landlord
     shall operate and maintain the Common Areas in such manner as Landlord in
     its discretion shall determine, shall have full right and authority to
     employ and discharge all personnel with respect thereto, and shall have the
     right, through reasonable rules, regulations, and/or restrictive covenants
     promulgated by it from time to time, to control use and operation of the
     Common Areas in order that the same may occur in a proper and orderly
     fashion.

          20.3  Parking.  Automobiles of Tenant and all Occupants (as defined
     above) associated with Tenant shall be parked only within parking areas not
     otherwise reserved by Landlord. Landlord or its agents shall, without any
     liability to Tenant or its Occupants, have the right to cause to be removed
     any automobile that may be wrongfully parked in a prohibited or reserved
     parking area, and Tenant agrees to indemnify, defend and hold Landlord
     harmless from and against any and all claims, losses, demands, damages and
     liabilities asserted or arising with respect to or in connection with any
     such removal of an automobile.

                                      25
<PAGE>

XXI.  SIGNS, AWNINGS, AND CANOPIES

          21.1  General Rights.  Tenant shall not place or suffer to be placed
      or maintained on any exterior door, wall, or window of the Leased
      Premises, or elsewhere in the Building, any sign, awning, marquee,
      decoration, lettering, attachment, or canopy, or advertising matter or
      other thing of any kind, and will not place or maintain any decoration,
      lettering, or advertising matter on the glass of any window or door of the
      Leased Premises without first obtaining Landlord's written approval.
      Tenant further agrees to maintain such sign, awning, canopy, decoration,
      lettering, advertising matter, or other things, as may be approved, in
      good condition and repair at all times. Landlord may, after five (5)
      business days notice to Tenant, at Tenant's cost, and without liability to
      Tenant, enter the Leased Premises and remove any item erected in violation
      of this Section. Landlord may establish rules and regulations governing
      the size, type, and design of all signs, decorations, etc., and Tenant
      agrees to abide thereby.

          21.2  Exclusive Rights.  Tenant shall have exclusive building and
      monument signage rights for the Building. Tenant shall have non-exclusive
      signage rights on the Jordan Valley Technology Center monument sign
      located on the easternmost part of the property.

XXII. MISCELLANEOUS PROVISIONS

          22.1  No Partnership.  Landlord does not by this Lease, in any way or
      for any purpose, become a partner or joint venturer of Tenant in the
      conduct of its business or otherwise.

          22.2  Force Majeure.  Landlord shall be excused for the period of any
      delay in the performance of any obligations hereunder when prevented from
      so doing by cause or causes beyond Landlord's control, including labor
      disputes, civil commotion, war, governmental regulations or controls, fire
      or other casualty, unforeseen material shortages, or acts of God.

          22.3  No Waiver.  Failure of Landlord to insist upon the strict
      performance of any provision or to exercise any option hereunder shall not
      be deemed a waiver of such breach. No provision of this Lease shall be
      deemed to have been waived unless such waiver be in writing signed by
      Landlord.

          22.4  Notice.  Any notice, demand, request, or other instrument which
      may be or is required to be given under this Lease shall be delivered in
      person or sent by United States certified or registered mail, postage
      prepaid and shall be addressed (a) if to Landlord, at the place specified
      for payment of rent, which is set forth below, and (b) if to Tenant,
      either at the Leased Premises or at any other current address for Tenant
      which is known to Landlord,

                                      26
<PAGE>

      including the address set forth below. Either party may designate such
      other address as shall be given by written notice.

      Landlord: Boyer Jordan Valley 1, L.C.
                c/o The Boyer Company
                127 South 500 East, Suite 100
                Salt Lake City, Utah 84102
                (801) 521-4781

      Tenant:   TenFold Corporation
                180 West Election Road
                Draper, Utah 84020
                (801) 495-1010

          22.5  Captions; Attachments; Defined Terms

          (a)   The captions to the section of this Lease are for convenience of
     reference only and shall not be deemed relevant in resolving questions of
     construction or interpretation under this Lease.

          (b)   Exhibits referred to in this Lease, and any addenda and
     schedules attached to this Lease shall be deemed to be incorporated in this
     Lease as though part thereof.

          22.6  Recording.  Tenant may not record this Lease or a memorandum
     thereof without the written consent of Landlord, which consent shall not be
     unreasonably withheld.  Landlord, at its option and at any time, may file
     this Lease for record with the Recorder of the County in which the Building
     is located.

          22.7  Partial Invalidity.  If any provision of this Lease or the
     application thereof to any person or circumstance shall to any extent be
     invalid, the remainder of this Lease or the application of such provision
     to persons or circumstances other than those as to which it is held invalid
     shall not be affected thereby and each provision of this Lease shall be
     valid and enforced to the fullest extent permitted by law.

          22.8  Broker's Commissions.  Tenant represents and warrants that other
     than Grubb & Ellis and Colliers Commerce CRG there are no claims for
     brokerage commissions or finder's fees in connection with this Lease and
     agrees to indemnify Landlord against and hold it harmless from all
     liabilities arising from any other such claims, including any attorneys'
     fees connected therewith.

          22.9  Tenant Defined.  Use of Pronouns.  The word "Tenant" shall be
     deemed and taken to mean each and every person or party executing this
     document as a Tenant herein.  If there is more than one person or
     organization set forth on the signature line as the Tenant, their liability
     hereunder shall be joint and several.  If there is more than one Tenant,
     any

                                      27
<PAGE>

     notice required or permitted by the terms of this Lease may be given by
     or to any one thereof, and shall have the same force and effect as if given
     by or to all thereof.  The use of the neuter singular pronoun to refer to
     Landlord or Tenant shall be deemed a proper reference even though Landlord
     or Tenant may be an individual, a partnership, a corporation, or a group of
     two or more individuals or corporations.  The necessary grammatical changes
     required to make the provisions of this Lease apply in the plural sense
     where there is more than one Landlord or Tenant and to corporations,
     associations, partnerships, or individuals, males or females, shall in all
     instances be assumed as though in each case fully expressed.

          22.10  Provisions Binding, Etc.  Except as otherwise provided, all
     provisions herein shall be binding upon and shall inure to the benefit of
     the parties, their legal representative, heirs, successors, and assigns.
     Each provision to be performed by Tenant shall be construed to be both a
     covenant and a condition, and if there shall be more than one Tenant, they
     shall all be bound, jointly and severally, by such provisions.  In the
     event of any sale or assignment (except for purposes of security or
     collateral) by Landlord of the Building, the Leased Premises, or this
     Lease, Landlord shall, from and after the Commencement Date (irrespective
     of when such sale or assignment occurs), be entirely relieved of all of its
     obligations hereunder.

          22.11  Entire Agreement, Etc.  This Lease and the Exhibits, Riders,
     and/or Addenda, if any, attached hereto, constitute the entire agreement
     between the parties.  Any guaranty attached hereto is an integral part of
     this Lease and constitutes consideration given to Landlord to enter in this
     Lease.  Any prior conversations or writings are merged herein and
     extinguished.  No subsequent amendment to this Lease shall be binding upon
     Landlord or Tenant unless reduced to writing and signed.  Submission of
     this Lease for examination does not constitute an option for the Leased
     Premises and becomes effective as a lease only upon execution and delivery
     thereof by Landlord to Tenant.  If any provision contained in the rider or
     addenda is inconsistent with a provision in the body of this Lease, the
     provision contained in said rider or addenda shall control.  It is hereby
     agreed that this Lease contains no restrictive covenants or exclusives in
     favor of Tenant.  The captions and Section numbers appearing herein are
     inserted only as a matter of convenience and are not intended to define,
     limit, construe, or describe the scope or intent of any section or
     paragraph.

          22.12  Governing Law.  The interpretation of this Lease shall be
     governed by the laws of the State of Utah.  Tenant hereby expressly and
     irrevocably agrees that Landlord may bring any action or claim to enforce
     the provisions of this Lease in the State of Utah, County of Salt Lake, and
     the Tenant irrevocably consents to personal jurisdiction in the State of
     Utah for the purposes of any such action or claim.  Tenant further
     irrevocably consents to service of process in accordance with the
     provisions of the laws of the State of Utah.  Nothing herein shall be
     deemed to preclude or prevent Landlord from bringing any action or claim to
     enforce the provisions of this Lease in any other appropriate place or
     forum.

                                      28
<PAGE>

          22.13  Recourse by Tenant.  Anything in this Lease to the contrary
     notwithstanding, Tenant agrees that it shall look solely to the estate and
     property of Landlord in the land, Buildings and Improvements thereto, and
     subject to prior rights of any mortgagee, for the collection of any
     judgment (or other judicial process) requiring the payment of money by
     Landlord in the event of any default or breach by Landlord with respect to
     any of the terms, covenants, and conditions of this Lease to be observed
     and/or performed by Landlord, and no other assets of Landlord or any of its
     partners, shareholders, successors, or assigns shall be subject to levy,
     execution, or other procedures for the satisfaction of Tenant's remedies.

          22.14  Choice of Law.  This Lease shall be governed by and construed
     in accordance with the laws of the State of Utah.

          22.15  Waiver of Right to Jury Trial.  Landlord and Tenant waive their
     respective rights to trial by jury of any contract or tort claim,
     counterclaim, cross-complaint, or cause of action in any action,
     proceeding, or hearing brought by either party against the other on any
     matter arising out of or in any way connected with this Lease, the
     relationship of Landlord and Tenant, or Tenant's use or occupancy of the
     Leased Premises, including any claim of injury or damage or the enforcement
     of any remedy under any current or future law, statue, regulation, code, or
     ordinance.

          22.16  Arbitration.  Where arbitration provisions apply, arbitration
     procedures shall be "baseball" where the arbitrator accepts one of the
     parties' claims without modification and rejects the other party's claim
     entirely.

          22.17  Tenant's Personal Property.  Notwithstanding anything in this
     Lease to the contrary under no circumstances shall Landlord have any lien
     or possessory interest in Tenant's equipment and personal property.

          22.18  Hazardous Substances.  Landlord represents and warrants, as of
     the date of commencement of this Lease that the Leased Premises will be
     free of asbestos and all hazardous materials as described by Federal, State
     and Local regulations and on behalf of itself and its successors and
     assigns hereby covenants and agrees to use and operate the Building and
     Property at all times during the term hereof, or any extensions, under and
     in compliance with any and all laws or rules, regulations, or other legal
     requirements regarding hazardous substances or other environmental matters
     and shall indemnify, defend and hold Tenant harmless from and against any
     and all loss, cost, liability, damage or expense, including reasonable
     attorney's fees, which Tenant may incur, sustain or which may be asserted
     against Tenant by reason of Landlord's failure to comply with all such laws
     or regulations.

                 Notwithstanding the above, Tenant shall indemnify, defend and
     hold Landlord harmless from and against any and all loss, cost liability,
     damage or expense including reasonable attorney's fees, which Landlord may
     incur or sustain or which may be asserted against Landlord by reason of any
     liability Landlord may incur for clean up,

                                      29
<PAGE>

     restoration costs, fines, or penalties resulting from the violation of any
     environmental law or regulation caused by Tenant, its employees, agents and
     contractors, arising out of Tenant's use of the Premises. Tenant shall
     operate its business in the Leased Premises in compliance with all
     environmental laws or regulations including but not limited to obtaining
     all required permits or licenses, if any, when required.

     IN WITNESS WHEREOF, the Landlord and Tenant have executed this Lease on the
date first set forth above.

                                   LANDLORD: BOYER JORDAN VALLEY 1, L.C., BY
                                             ITS MANAGING PARTNER,
                                             THE BOYER COMPANY, L.C.

                                             By:  /s/ Kem C. Gardner
                                                  ------------------------------
                                                  Kem C. Gardner
                                                  President and Manager

                                   TENANT:   TENFOLD CORPORATION

                                             By:  /s/ Robert P. Hughes
                                                  ------------------------------
                                                  Robert P. Hughes
                                             Its: Chief Financial Officer

                                      30
<PAGE>

                                    NOTARY

STATE OF UTAH            )
                         ) ss
COUNTY OF SALT LAKE      )

     On this 28 day of April, 2000, personally appeared before me KEM C.
GARDNER, who duly acknowledged to me that he executed the foregoing Lease as the
PRESIDENT AND MANAGER of BOYER JORDAN VALLEY 1, L.C., BY ITS MANAGING PARTNER,
THE BOYER COMPANY, L.C., A UTAH LIMITED LIABILITY COMPANY.

My commission Expires:                       /s/ Samantha Quealy
                                             ---------------------------------
                                             Notary Public
     4/28/01                                 Residing at SALT LAKE COUNTY

                                             [SEAL]
STATE OF UTAH            )
                         ) ss
COUNTY OF UTAH           )

     On this 28 day of April, 2000, personally appeared before me ROBERT P.
HUGHES, who being duly sworn, did say that he is the CHIEF FINANCIAL OFFICER of
Tenfold Corporation, a Delaware Corporation, and that said instrument was signed
in behalf of said corporation by authority of its by-laws or a resolution of its
Board of Directors, and said ROBERT P. HUGHES acknowledged to me that said
corporation executed the same.

My Commission Expires:                       /s/ Sheila Neumann
                                             ---------------------------------
                                             Notary Public
     3-15-2004                               Residing at Sandy, UT
----------------------                                   ---------------------

                                             [SEAL]

                                      31
<PAGE>

                                  EXHIBIT "A"

                         LEGAL DESCRIPTION OF PROPERTY
                         -----------------------------

                        Jordan Valley Technology Center
                              LOT No. 1 Boundary

  Beginning at a point which lies South 89?32'26" East 183.61 feet and South
00?27'34" West perpendicular to the north line of the southwest quarter of
section 12, T3S., R1W., S.L.B.&M., 75.67 feet, from the West quarter corner of
said section 12, ( a found brass cap ),
said point also lies on the westerly boundary of the Pheasant Hollow Business
Park; thence along said boundary line the following (7) seven courses:

1.) South 10?46'37"East 407.04 feet to a found rebar,
2.) South 60?49'07" East 407.94 feet to a found rebar,
3.) South 28?11'14" East 192.46,
4.) South 27?32'55" East 114.91 feet,
5.) South 86?31'49" East 29.65 feet,
6.) South 83?32'07" East 128.83 feet
7.) South 29?42'38" East 375.76 feet to a point which lies on the Northerly
right of way  line of the proposed 10000 South street; thence along said
boundary line the following (6) six courses:

1.) North 89?46'10" West 406.21 feet to the beginning of a  2.) curve to the
right having a central
of 35?13'30", radius of 667.00 feet, (chord bears North 72?09'25" West 403.64
feet), thence along the Arc of said curve 410.07 feet;  3.) thence North
54?32'40" West 259.04 feet to the beginning of a  4.) curve to the right, having
a central angle of 15?39'15", radius of 967.00 feet, ( chord bears North
46?43'02" West 263.38 feet), thence along the Arc of said curve 264.20 feet;
5.) thence North 38?53'25" West 119.58 feet to the beginning of a  6.) Curve to
the left, having a central angle of 7?56'11", radius of 508.00 feet, (chord
bears North 42?51'30"West 70.31 feet ), thence along the Arc of said curve 70.37
feet to a point which lies on the Phase Boundary line of the Jordan Valley
Technology Center; thence along said phase line North 32?53'27" East 729.04 feet
to the Point of Beginning.

Said Tract of land contains 14.925 acres more or less.

                                      A-1
<PAGE>

                                  EXHIBIT "B"

                         Floorplan of Leased Premises
                         ----------------------------

                           [FLOOR PLAN APPEARS HERE]

                                      B-1
<PAGE>

                               SECOND FLOORPLAN
                               ----------------

                           [FLOOR PLAN APPEARS HERE]

                                      B-2
<PAGE>

                                THIRD FLOORPLAN
                                ---------------

                           [FLOOR PLAN APPEARS HERE]

                                      B-3
<PAGE>

                               FOURTH FLOORPLAN
                               ----------------

                           [FLOOR PLAN APPEARS HERE]

                                      B-4
<PAGE>

                                FIFTH FLOORPLAN
                                ---------------

                           [FLOOR PLAN APPEARS HERE]

                                      B-5
<PAGE>

                                  EXHIBIT "C"

                                  WORK LETTER
                                  -----------

                        CONSTRUCTION AND/OR FINISHING OF
                        IMPROVEMENTS TO LEASED PREMISES

    In accordance with the provisions of the body of the Lease to which this
Exhibit "C" is attached, the improvements to the Leased Premises shall be
constructed and/or finished (as the case may be) in the manner described, and
upon all of the terms and conditions contained in the following portion of this
Exhibit "C."

I.  GENERAL DESCRIPTION OF WORK:
    ---------------------------

    A.   LANDLORD'S CONSTRUCTION OBLIGATION:  Landlord's construction obligation
         ----------------------------------
respecting improvements to the Leased Premises shall consist of the following
described items or elements of work (where more than one type of material,
structure, or method is indicated, Landlord shall have the option of selecting
or employing any thereof):

         1.  STRUCTURAL:
             ----------

             (a) Frame:  The building shall be of steel or concrete frame,
                 -----
         reinforced concrete, or bearing wall construction designed in
         accordance with the applicable building code.

             (b) Exterior Walls:  Insulated exterior walls of the building shall
                 --------------
         be of masonry, concrete, or such other material(s) as may be selected
         by Landlord's architect.

             (c) Floor:  Floor shall be of concrete slab.
                 -----

         2.  BASE BUILDING:  The Landlord shall provide the Tenant a building
             -------------
    shell consistent with a Class "A" multi-tenant office building including the
    following as part of the base building shell and parking:  Landscaping, site
    identification, elevators, elevator lobbies, toilets, stairwells, elevator
    machine rooms, mechanical rooms, electrical rooms, main lobby, loading
    docks, and janitorial closets on Leased Premises floors.  Landlord warrants
    that the Building and the Leased Premises are being constructed in
    compliance with the current 1989-62 ASHRAE Air Quality Standards.

         3.  UTILITIES:
             ---------

             (a) Water and Sewer:  Water and sewer service shall be furnished to
                 ---------------
         the toilet rooms on the floors of the Leased Premises.

                                      C-1
<PAGE>

             (b) Electricity:  Electrical service shall be provided to panels on
                 -----------
         the floors of the Leased Premises, capable of providing 7 watts per
         rentable square foot over the entire area.

         4.  HEATING, AIR CONDITIONING, AND SPRINKLERS:
             -----------------------------------------

             (a) Air Conditioning and Heating:  HVAC trunk lines shall be
                 ----------------------------
         provided to the floor area.  No distribution or controls shall be
         provided by Landlord.

             (b) Sprinklers:  Automatic sprinkler system, if and to the extent
                 ----------
         required by the applicable code, shall be installed in the Leased
         Premises.

    B.   TENANT'S LEASEHOLD IMPROVEMENT REQUEST:  The work to be performed by
         --------------------------------------
Landlord in satisfying its obligations respecting construction of improvements
to the Leased Premises shall be limited to that described in the foregoing
Section.  The Landlord, as Tenant's agent, shall construct the Tenant
Improvements in accordance with drawings and specifications prepared by the
Tenant and reasonably approved by the Landlord ("Tenant's Plans").  Tenant may
elect to negotiate with the Base Building contractor or bid the Tenant
Improvements.  If directed by Tenant, the Landlord shall competitively bid the
Approved Plans to not less than three (3) qualified general contractors.  The
Tenant shall have the right to review the list of qualified general contractors
prior to bidding and to remove from the list any general contractor which the
Tenant reasonably believes is unsatisfactory to perform the work.  The Tenant
and Landlord shall open the bids together and adjust the bids for
inconsistencies and/or qualification, and the Tenant shall select the contractor
("Tenant Contractor") with the lowest responsive bid.  Subject to Tenant's right
to modify the scope of the Tenant Improvements set forth in Section 3 of this
Exhibit "C," Tenant's Leasehold Improvement Request respecting improvements to
the Leased Premises shall include, but not necessarily be limited to, the
purchase, installation, and/or performance (as the case may be) of the following
described items or elements of work:

         1.  Tenant's Electric Fixtures and Equipment:  All electrical work and
             ----------------------------------------
    distribution related to Tenant's Improvements from Base Building panels.

         2.  Tenant's Telephone:  All arrangements for telephone service and all
             ------------------
    conduits for telephone wires in the Leased Premises.

         3.  Walls:  All interior partitioning and drywall on all party or the
             -----
    walls surrounding the Leased Premises.

         4.  Doors:  All interior doors and door frames.
             -----

         5.  Floor Covering:  All floor covering and floor materials other than
             --------------
    concrete.

         6.  Alarm System:  Any alarm systems or other protective devices within
             ------------
    the Leased Premises.

                                      C-2
<PAGE>

         7.  Demising Walls:  Demising walls (i.e., walls dividing the Leased
             --------------
    Premises for areas, if any, in the same building occupied by other lessees)
    shall be of steel stud or masonry.

         8.  Special Plumbing and Water Heater:  All extra plumbing (either
             --------------------------------
    roughing-in or fixtures) required for Tenant's special needs and any water
    heater required.

         9.  Special Ventilation:  All ventilation and related equipment not
             ------------------
    installed under Landlord's Construction Obligation.

         10.  Special Equipment:  All special equipment such as conveyors,
              -----------------
    lifts, etc.

         11.  Painting:  All interior painting.
              --------

         12.  Ceiling:  The following shall be furnished and installed:
              -------
    suspended type ceiling using pre-formed panels; drywall blown acoustical
    tile ceilings; light coves and specially hung or furred ceiling.

         13.  Tenant's Distribution System:  All low pressure ducting
              ----------------------------
    distribution, controls and diffusers.

II. PLANS
    -----

    A.   LANDLORD'S PLANS: Landlord shall furnish, construct and install the
         ----------------
items and elements comprising Landlord's Construction Obligation substantially
in accordance with the plans, specifications, and working drawings applicable
thereto (hereinafter referred to as "Landlord's Plans") prepared by the
architectural firms of Studios Architecture and MHTN Architects as Landlord's
Plans may be changed or modified from time to time.

    B.   TENANT'S PLANS:  Landlord and Tenant shall collaborate in preparation
         --------------
of complete plans and specifications (hereinafter referred to as "Tenant's
Plans") detailing the work and elements comprising Tenant's Leasehold
Improvement Request.  Tenant shall submit such Plans to Landlord for written
approval (not to be unreasonably withheld.)  The approval by Landlord of
Tenant's Plans for work to be performed in the Leased Premises shall in no way
create any responsibility or liability on the part of Landlord for their
completeness, design sufficiency or compliance with any and all laws, rules and
regulations of federal, state, county and municipal agencies or authorities.
Any objections by Landlord to the Tenant's Plans and the reason therefore shall
be given to Tenant  within ten (10) business days of receipt of Tenant's Plans.
Tenant shall complete or cause to have completed the Tenant's Plans within
ninety (90) days of receipt of complete and accurate Base Building plans and
specifications.  If Tenant fails within the ninety (90) day period after
receiving the necessary Base Building information from Landlord to furnish to
Landlord Tenant's Plans, Landlord shall have the right to terminate the Lease
five (5) days after written notice to Tenant (without prejudice to any right
Landlord may have against Tenant for damages arising out of Tenant's failure).

                                      C-3
<PAGE>

III.  CONSTRUCTION
      ------------

      A.  COMPETITIVE BIDDING:  At Tenant's option Landlord shall either (i)
          --------------------
have no less than three (3) general contractors reasonably approved by Tenant
and Landlord provide competitive bids to construct the Leased Premises or (ii)
select a general contractor of Tenant's choice (with Landlord's reasonable
approval) to negotiate a Cost Plus Fee Contract and to procure three competitive
bids on all trades of subcontractor work.

      B.  COMPLETION BY LANDLORD: Landlord shall construct and complete all the
          ----------------------
items or elements or work entering into Landlord's Construction Obligation as
soon as reasonably possible, but in no event later than Eighteen (18) months
after the date of the Lease.  In the event Landlord's Construction Obligations
have not been fulfilled upon the expiration of said Eighteen (18) month period,
Tenant shall have the right to exercise any right or remedy available to it
under applicable law, except that under no circumstances shall Landlord be
liable to Tenant for any incidental or consequential loss or damage to Tenant
resulting from delay in construction.  All of the items or elements of work
entering into Landlord's Construction Obligation shall be furnished,
constructed, and installed substantially in accordance with those portions of
Tenant's Plans applicable thereto. Landlord shall not be liable for any latent,
patent, or observable defects in such improvements after such acceptance by
Tenant.  Landlord does, however, warrant the work performed hereunder by
Landlord against latent defects discovered at any time during the one (1) year
period following the time of such acceptance by Tenant.

      C.  TENANT'S LEASEHOLD IMPROVEMENT REQUEST:  At such time as construction
          -------------------------------------
has progressed to a suitable point, Landlord, or Landlord's architect or
supervising contractor, shall notify Tenant in writing that work on the items or
elements entering into Tenant's Leasehold Improvement Request may begin.  Upon
receipt of such notice, Tenant shall promptly commence and thereafter shall
diligently pursue to completion all of the matters entering into Tenant's
Leasehold Improvement Request, and such matters shall be performed or
accomplished in accordance with the applicable law, in a good and workmanlike
manner, by contractors approved in writing by Landlord, and in such manner as to
maintain harmonious and suitable labor relations and working conditions.  Tenant
shall timely obtain all licenses or permits required for the work performed by
Tenant.

          Tenant's Leasehold Improvement Request shall include, but not be
limited to telephone and data cabling, security system, furniture, telephone and
data equipment, audio/visual wiring and equipment, white noise system, signage
and computers.

          Tenant shall, at Landlord's request, furnish Landlord with a bond or
bonds assuring payment to all those furnishing labor, materials, or services in
connection with Tenant's Leasehold Improvement Request.  Any work or change
which Tenant desires to accomplish and which is not reflected by Tenant's Plans
shall be subject to Landlord's prior written approval (not to be unreasonably
withheld).  Upon completion of Tenant's Leasehold Improvement Request, Tenant
shall furnish to Landlord a complete set of "as built" plans and specifications
for the items and elements entering into Tenant's Leasehold Improvement Request.

                                      C-4
<PAGE>

     D.   INTERRELATIONSHIP OF WORK:  In performing its Leasehold Improvement
          -------------------------
Request, Tenant shall comply with all directions of Landlord or Landlord's
contractor so as to coordinate its construction activities with those being
pursued by others (whether on the Leased Premises or elsewhere in the Building,
and whether by Landlord or by other tenants).  Any improvements or items of
equipment installed by Tenant which are to be visible from outside of the Leased
Premises shall be finish painted by Tenant in accordance with Landlord's
standard paint schedule.  All work performed by Tenant shall leave Landlord's
structure as strong or stronger than original design and with finishes
unimpaired.  Any roofing or flashing work accomplished by Tenant shall conform
to original work and shall be performed at Tenant's expense by Landlord's
roofing subcontractor who installed the original roof.  Either party hereto may
examine and inspect the work of the other at any reasonable time and shall
promptly give notice of any observed defects.

          1.   TENANT'S CONTRACTORS/VENDORS:  Tenant shall have the right to
               ----------------------------
    retain its own contractors or vendors to perform any portion of the work
    necessary to construct and outfit the Leased Premises (which will not be
    part of the general contractor's scope of work nor shall a mark-up be
    added).  The Tenant's contractors'/vendors' work shall include, but not be
    limited to:  data cabling, telephone and data equipment, security,
    audio/visual equipment, white noise, and furniture systems.  Tenant's
    contractors/vendors and Landlord's Building and Tenant Improvement
    contractor(s) shall work in harmony during the construction of the Tenant
    Improvements.  Tenant and Tenant's contractors/vendors shall have access to
    the Leased Premises during the construction to install cabling and for the
    purpose of inspecting the work in progress.

         2.    ROOF PENETRATIONS:  Tenant agrees that neither it nor its
               -----------------
    contractors or employees will, during the construction of the Leased
    Premises or at any time during the term of this Lease, make or cause to be
    made in the roof of the Premises any penetration whatsoever without first
    obtaining the prior written approval from Landlord.  Tenant acknowledges
    that Landlord may require Tenant to use Landlord's designated roofing
    contractor to perform or supervise any roof cuts or penetrations to which
    Landlord may agree or give its consent.

               In the event Tenant fails to observe this condition, Landlord may
    hire a roofing contractor of its choice to inspect any penetrations in the
    roofing material over the Demised Premises and to perform any needed
    modifications or corrections to the roof surface or its components in order
    to preserve the integrity of the roof structure.  Landlord may bill Tenant
    for the expenses of any such roof inspection and/or repairs, plus a 20%
    overhead fee for such work.  Tenant agrees to pay for said inspection and/or
    repairs immediately upon presentation of said invoice.

         3.    HEATING/VENTILATING/AIR CONDITIONING DISTRIBUTION AND CONTROL
               -------------------------------------------------------------
    WORK: In order to insure that the rooftop mechanical equipment, originally
    -----
    provided by the Landlord, will work efficiently and effectively to provide
    the specified heating, ventilating and/or cooling to the Leased Premises,
    Tenant agrees and

                                      C-5
<PAGE>

    covenants that prior to its installation of any duct work, distribution
    equipment, controls or other related components of the mechanical system, it
    will first obtain from Landlord or from Landlord's designated mechanical
    contractor, written approval of its plans for same.

    E.   PAYMENT:  Landlord shall furnish, construct, and complete all of the
         -------
matters entering into Landlord's Construction Obligation at its own cost and
expense.  Landlord, as Tenant's agent, shall furnish, construct and complete all
of the matters entering Tenant's Leasehold Improvement Request at its own cost
and expense up to the amount of the Tenant Allowance specified below.  All fees
of Tenant's architect or engineer shall be paid by Tenant.

         1.  Landlord agrees to provide a Tenant Allowance of $843,000 based on
    $5.00 per rentable square foot times 168,600 rentable square feet.

         2.  This Tenant Allowance shall be provided in accordance with the
    following conditions:

             (i)   All items of work specifically listed or implied under
         Tenant's Leasehold Improvement Request shall be certified complete by
         Landlord and Tenant;

             (ii)  Any such invoices with the necessary certification shall be
         forwarded to the Landlord for consideration and payment;

             (iii) If such work is found to be complete as certified, Landlord
         shall remit to the supplier of all such certified materials and/or
         labor thus invoiced, a total amount due within thirty (30) days.

             (iv)  The above notwithstanding, Landlord shall not be obligated to
         remit final payment prior to its receipt of the following documents:

                   l.  A Certificate of Occupancy from the municipality
             involved;

                   2.  A signed copy of Exhibit "D" of this Lease as defined in
             Section 2.2, or an equivalent document provided by Landlord and as
             required by lender;

                  3.  A copy of Liability Insurance or Certificate of Insurance
             as defined in Section 11; and

                  4.  All copies of necessary lien waivers involved with any
             general or subcontractors involved with Tenant's Leasehold
             Improvement Request.

             (v)  No personal property shall be included as part of the Tenant
         Allowance.

                                      C-6
<PAGE>

     3.   Subject to the last sentence of this Section 3, all expenses arising
     by reason of Tenant's Leasehold Improvement Request in excess of the Tenant
     Allowance shall be borne exclusively by the Tenant. Not later than May 15,
     2000, Tenant shall deposit into an escrow account reasonably acceptable to
     Landlord, an additional sum of Fifteen Dollars ($15.00) per rentable square
     foot or Two Million Five Hundred Twenty Nine Thousand Dollars
     ($2,529,000.00) for a portion of the cost of Tenant's Leasehold Improvement
     Request. Subject to the last sentence of this Section 3, Tenant shall pay
     or cause the payment from the escrow account to the Landlord any excess
     costs related to Tenant Improvements that exceed the Tenant Allowance on a
     pro-rata basis with each Tenant Improvement monthly construction draw.
     Landlord shall provide Tenant with an anticipated schedule of monthly draw
     amounts. To the extent that at any time the cost of Tenant's Leasehold
     Improvement Request, as modified pursuant to the next sentence, is less
     than the sum of the Tenant Allowance plus amounts disbursed from escrow to
     pay the cost of Tenant's Leasehold Improvement Request, the balance shall
     immediately be returned to Tenant. Tenant may reduce the cost or scope of
     Tenant's Leasehold Improvement Request with the consent of Landlord, which
     consent shall not be withheld if the Tenant's Improvements comply with
     applicable law and reasonable engineering and design practices for a Class
     "A" office building, but any reduction shall not affect Tenant's obligation
     to open for business in the Leased Premises or to pay Basic Annual Rent,
     Additional Rent or other rents and charges. If, however, Tenant defaults in
     performing any obligation under the Lease prior to full disbursement of the
     escrow account, Landlord shall have a security interest in any amounts
     remaining in escrow to secure payment of any damages finally determined to
     be owing by Tenant. Except to the extent more extensive Tenant Improvements
     are approved by Tenant, Tenant shall not be responsible to pay more than
     Two Million Five Hundred Twenty-Nine Thousand Dollars ($2,529,000.00) for
     its portion of the Tenant Leasehold Improvement Request and Landlord shall
     not be obligated to pay more than Eight Hundred Forty-Three Thousand
     Dollars ($843,000.00) for Tenant Improvements. In no event shall Tenant be
     obligated to pay any amount of cost overruns for items other than Tenant
     Leasehold Improvement Requests.

     F.   ACCURATE DRAWINGS:  Landlord shall supply to Tenant a full set in both
          -----------------
hard copy and on electronic media in a format acceptable by Tenant, of accurate
as-built architectural and engineering drawings.

     G.   PUNCH LIST PENALTY:  If the punch list items are not completed within
          ------------------
thirty (30) days, then landlord shall collect a penalty from the Tenant
Contractor in the amount of $300.00 for each day thereafter until the punch list
items are completed, and credit Tenant for the amount collected against any
excess Tenant Improvement costs or pay such amount to Tenant.

                                      C-7
<PAGE>

                                 EXHIBIT  "D "

                      ACKNOWLEDGMENT OF COMMENCEMENT DATE
                        AND TENANT ESTOPPEL CERTIFICATE

TO:                           DATE:

     RE:________________________________________________________________
        ________________________________________________________________
        ________________________________________________________________
        ________________________________________________________________

Gentlemen:

     The undersigned, as Tenant, has been advised that the Lease has been or
will be assigned to you as a result of your financing of the above-referenced
property, and as an inducement therefor hereby confirms the following:

1.   That the space leased by Tenant is ________________ rentable square feet.

2.   That the Basic Annual Rent is $       ($     per rentable square foot).

3.   That it has accepted possession and is in full occupancy of the Premises,
     that the Lease is in full force and effect, that Tenant has received no
     notice of any default of any of its obligations under the Lease, and that
     the Lease Commencement Date is _______________________________________.

4.   That other than the attached punch list items, the improvements and space
     required to be furnished according to the Lease have been completed and
     paid for in all respects, and that to the best of its knowledge, Landlord
     has fulfilled all of its duties under the terms, covenants and obligations
     of the Lease and is not currently in default thereunder.

5.   That the Lease has not been modified, altered, or amended, and represents
the entire agreement of the parties, except as follows:

     __________________________________________________________________
     __________________________________________________________________
     __________________________________________________________________
     __________________________________________________________________

                                      D-1
<PAGE>

6.   That there are no offsets, counterclaims or credits against rentals, nor
have rentals been prepaid or forgiven, except as provided by the terms of the
Lease.

7.   That said rental payments commenced or will commence to accrue on
     _____________, and the Lease term expires ___________________________.  The
     amount of the security deposit and all other deposits paid to Landlord is
     $__________________.

8.   That Tenant has no actual notice of a prior assignment, hypothecation or
     pledge of rents of the Lease, except: ____________________________________
     ___________________________________________________________________________
     ______________________.

9.   That this letter shall inure to your benefit and to the benefit of your
     successors and assigns, and shall be binding upon Tenant and Tenant's
     heirs, personal representatives, successors and assigns.  This letter shall
     not be deemed to alter or modify any of the terms, covenants or obligations
     of the Lease.

     The above statements are made with the understanding that you will rely on
them in connection with the purchase of the above-referenced property.

                                          Very truly yours,

                                          ____________________________________

     Date of Signature: _____________     By:_________________________________

                                      D-2
<PAGE>

                              E X H I B I T  "E"
                              ------------------

                       COST TO CONSTRUCT LEASED PREMISES
                       ---------------------------------

TENANT:  TENFOLD CORPORATION

SQUARE FOOTAGE:  168,600

ITEM                                               COST ESTIMATE
----                                               -------------

1.0  General Conditions--Clean up                   _____________

6.1  Rough Carpentry                                _____________
6.2  Millwork                                       _____________

7.1  Insulation                                     _____________
7.2  Caulking & Sealants                            _____________

8.1  Hollowmetal Doors & Frames                     _____________
     Lobby Door Access Controls                     _____________
8.2  Glazing                                        _____________

9.0  Drywall/Painting/Wall Coverings                _____________
9.1  Acoustical                                     _____________
9.2  Flooring                                       _____________

10.0 Specialties                                    _____________

15.0 HVAC                                           _____________
     Plumbing                                       _____________
15.1 Fire Protection                                _____________

16.0 Electrical                                     _____________

17.0 Controls                                       _____________

17.2 Tax                                            _____________
17.3 Fee                                            _____________

                    TOTAL COST                      $ 3,372,000
                                                    -------------

                    SOURCES OF FUNDS:

                    LANDLORD ALLOWANCE
                    (Section 2.3)                   $   843,000
                                                    -------------

                    TENANT ESCROW ACCOUNT           $2,529,000
                                                    -------------

                                      E-1
<PAGE>

                              E X H I B I T  "F"

                      MINIMUM BUILDING STANDARD FINISHES
                      ----------------------------------

A.   FLOORCOVERINGS:
     --------------

     1.   30 ounce face-weight carpet cut-pile on pad, color to be selected by
          Tenant.

     2.   Designated areas to receive vinyl composite tile made by Ken Tile,
          Avanti type, rubber base on all walls.

B.   WALLS:   All interior walls shall be sheetrock 5/8" on metal studs, taped
     -----
     and  ready for paint.

C.   DOORS/HARDWARE/GLASS:   Doors shall be twenty-minute rated, solid core, oak
     --------------------
     veneer faced, 7' in height, 3' in width.

     Hardware shall be a one-hour rated assembly to include a closure and lock
     set on the hallway doors.  All other doors to receive passage hardware,
     building standard.  Exterior doors shall have heavy duty hardware.

     Door frames to be 2" face hollow metal frames; frames must comply with
     U.B.C. requirements for fire rating.

     All interior glass shall be wired, clear.  Glass put in by Tenant shall
     conform to U.B.C. and C.P.S.C. requirements.

D.   LEVELORS:   All exterior windows to receive Levelor, Riviera window blinds,
     --------
     building standard color.

E.   PAINT:   All sheetrock interior walls and core walls to receive one coat
     ------
     prime, two coats Ameritone; color to be selected by Tenant.

F.   PLUMBING/CABINETRY:   Laminate base cabinet only with shelving; laminate
     ------------------
     color

                                      F-1
<PAGE>

     to be selected by Tenant.

G.   ELECTRICAL:
     ----------

     1.   2X4 four-tube, recessed, florescent light fixtures with parabolic lens
          to produce a lighting level of not less than 75 foot candles lighting
          at desk level.

     2.   One telephone outlet per 200 square feet of usable space.

     3.   One duplex outlet per 75 square feet of usable space.

     4.   One light switch per 200 square feet of usable space.

H.   HVAC:   The Landlord shall provide heating, ventilation and air
     ----
     conditioning on a  year-round basis throughout the premises and common
     areas.  The equipment shall maintain a uniform indoor temperature of 75
     degrees F.D.B. in summer and 72 degrees F.D.B. in the winter.  Temperature
     control shall be automatic and shall maintain temperature set point
     plus/minus 2 degrees F.  A thermostat control system with no more than
     l,000 square foot exterior zones and 3,000 square foot interior zones.

     All systems shall conform to local and national codes.  HVAC design and
     systems selected shall be submitted for review and approval by the Tenant.
     Approval by the Tenant does not release the Landlord from his strict
     responsibility to ensure furnishing design conditions as stated herein.

I.   CEILING TILE:   2x2 Acoustical tile 5/8" fissured tile.
     ------------

                                      F-2
<PAGE>

                                  EXHIBIT "G"

                                "RENT FORMULA"
                                --------------

     It is the intent of Landlord and Tenant that the Basic Annual Rent
specified is Section 3.1 of the Lease will be adjusted upon project completion.
The Basic Annual Rent specified in Section 3.1 of this Lease is established by
application of the "Rent Formula" to the Initial Project Budget (Exhibit "G-1").
Specifically, the Rent Formula is derived as follows:

     1.  Multiply the Initial Project Budget by the Tenant's pro-rata share
         of the Building as identified in Section 4.1(d) of this Lease.

     2.  Multiply the product obtained in Subsection 1 by the 13% rate of return
         to obtain the Basic Annual Rent.

     3.  Divide the Basic Annual Rent obtained in subsection (2) by the Tenant's
         rentable square feet to obtain the per square foot triple net lease
         rate.

     No later than ninety (90) days following the Commencement Date, Tenant and
Landlord shall jointly review the actual construction/development costs for the
project and establish the "Final Project Cost".

     The Rent Formula shall then be applied to the "Final Project Cost" to
derive the adjusted Basic Annual Rent to be paid by Tenant to Landlord.
Retroactive to the Commencement Date this Basic Annual Rent shall be paid in
lieu of the amount specified in Section 3.1 of the Lease.

                                      G-1
<PAGE>

                                 EXHIBIT "G-1"

                            INITIAL PROJECT BUDGET
                            ----------------------

                              TENFOLD CORPORATION                    4/20/00

SITE                   21.43 ACRES
SQUARE FEET       BLDG 1        3    FLOORS @      31,630 SQ FT      94,890
                  BLDG 2        5    FLOORS @      21,022 SQ FT     105,110
                                                                  ----------
                                                                    200,000

TENFOLD SQUARE FEET                                84.30%           168,600
AVAILABLE SQUARE FEET                              15.70%            31,400

PARKING               4      STALLS PER 1000                            800

<TABLE>
<CAPTION>
<S>                  <C>                         <C>                            <C>
LAND                   21.43 ACRES                $  4.56 / SQ FT               $  4,257,530
SHELL                200,000 SQ FT                $ 65.00 / SQ FT               $ 13,000,000
SITE                                                                            $  3,088,480
A & E FEES                                           6.0%                       $    965,309
TENANT FINISH        200,000 SQ FT                $ 20.00 / SQ FT               $  4,000,000
CONTINGENCY                                            3%                       $    631,614
                                                                               --------------

                                                HARD COST SUB TOTAL             $ 25,942,933

LEGAL, TITLE, PROPERTY TAXES, MISC                                              $    433,000
CITY IMPACT FEES                                  $  2.00 / SQ FT               $    400,000
LEASING COMMISSION                                $  5.00 / SQ FT               $  1,000,000
CONSTRUCTION LOAN POINTS                             0.5%                       $    151,730
CONSTRUCTION INTEREST                                8.5%      16 MONTHS        $  1,599,764
PERMANENT LOAN POINTS                                  1%                       $    303,460
SET UP FEE                                             1%                       $    303,460
CONSTRUCTION MGMT FEE                                                           $     83,365
CONTINGENCY                                            3%                       $    128,243
                                                                               --------------

                                                SOFT COST SUB TOTAL             $  4,403,021
                                                                               --------------

                                                TOTAL COST                      $ 30,345,954

LESS:
TENFOLD TENANT ESCROW ACCOUNT                     $ 15.00    X      168,600     $ (2,529,000)

SOUTH JORDAN WAIVER OF IMPACT FEES                                              $   (400,000)

SOUTH JORDAN SPECIAL IMPROVEMENT DISTRICT                                       $ (1,166,429)

UTAH  POWER & LIGHT FINANSWER PROGRAM                                           $   (250,000)
                                                                               --------------

                                     INITIAL PROJECT BUDGET                     $ 26,000,525

                                     MULTIPLY  BY  PRO-RATA  SHARE                     84.30%

                                     MULTIPLY  BY  RATE  OF  RETURN                       13%
                                                                               --------------

                                     BASIC ANNUAL RENT                          $  2,849,398

                                     DIVIDE  BY  TENFOLD  SQUARE  FEET               168,600
                                                                               --------------

                                      TRIPLE NET LEASE RATE                     $      16.90
                                                                               ==============
</TABLE>
<PAGE>

                                  EXHIBIT "H"

                            CLEANING SPECIFICATIONS

SCHEDULE OF JANITORIAL SERVICES
-------------------------------

OFFICE AREAS:
------------

     1.   Empty, clean and damp dust all waste receptacles and remove waste
          paper and rubbish from the Premises nightly; wash receptacles as
          necessary.

     2.   Empty and clean all ash trays, screen all sand urns nightly and supply
          and replace sand as necessary.

     3.   Vacuum all rugs and carpeted areas in offices, lobbies and corridors
          nightly.  Spot clean carpets as needed.

     4.   Hand dust and wipe clean with damp or treated cloth all office
          furniture, files, fixtures, paneling, window sills and other
          horizontal surfaces nightly; wash window sills when necessary.

     5.   Damp wipe and polish all glass furniture tops nightly.

     6.   Remove all finger marks and smudges from vertical surfaces, including
          doors, door frames, around light switches, private entrance glass and
          partitions nightly.

     7.   Wash clean all water coolers nightly.

     8.   Sweep all stairways nightly, vacuum if carpeted.

     9.   Police all stairwells throughout the entire building daily and keep in
          clean condition.

     10.  Damp mop spillage in office and public areas as required.

     11.  Damp dust all telephones as necessary.

WASHROOMS:
---------

     1.   Mop, rinse and dry floors nightly.

     2.   Scrub floors weekly.

     3.   Clean all mirrors, bright work and enameled surfaces nightly.

                                      H-1
<PAGE>

     4.   Wash and disinfect all basis, urinals and bowls nightly, using non-
          abrasive cleaners to remove stains and clean underside of rim on
          urinals and bowls nightly.

     5.   Wash both sides of all toilet seats with soap and water and disinfect
          nightly.

     6.   Damp wipe nightly, wash all partitions, tile walls and outside surface
          of all dispensers and receptacles.

     7.   Empty and sanitize all receptacles and sanitary disposals nightly;
          thoroughly clean and wash at least once per week.

     8.   Fill toilet tissue, soap, towel and sanitary napkin dispensers
          nightly.

     9.   Clean flushometers, piping, toilet seat hinges and other metal work
          nightly.

     10.  Wash and polish all wall, partitions, tile walls and enamel surfaces
          from trim to floor monthly or as needed.

     11.  Vacuum all louvers, ventilating grills, and dust light fixtures
          monthly.

FLOORS:
------

     1.   Ceramic tile, marble and terrazzo floors to be swept and buffed
          nightly and washed or scrubbed as necessary.

     2.   Vinyl asbestos, asphalt, vinyl, rubber or other composition floors and
          bases to be swept nightly; such floors in public areas on multiple
          tenancy floors to be waxed and buffed as needed.

     3.   Tile floors in office areas will be washed and buffed monthly.

     4.   All vinyl floors stripped and rewaxed as necessary.

     5.   All carpeted areas and rugs to be vacuumed clean nightly.

     6.   Detail vacuuming shall be performed as necessary.

RAISED COMPUTER FLOORS:
----------------------

     1.   Dry mop and spot clean all computer flooring nightly.

     2.   West mop all computer flooring at least once weekly.  Mopping may be
          performed on separate sections of the computer flooring on successive
          nights, as long as entire raised flooring is mopped once during each
          one-week period.

                                      H-2
<PAGE>

     3.   Buff all computer flooring monthly.

     4.   Computer sub-flooring shall be cleaned annually by contractor, or as
          necessary.

GLASS:
-----

     1.   Clean glass entrance doors, adjacent glass panels, and any common area
          glass nightly.

HIGH DUSTING (as needed):
------------

     1.   Dust and wipe clean all closet shelving when empty and carpet sweep or
          dry mop all floors in closets if such are empty.

     2.   Dust all picture frames, charts, graphs, and similar wall hangings.

     3.   Dust clean all verticals such as walls, partitions, doors, door bucks,
          and other surfaces above shoulder height.

     4.   Damp dust all ceiling air conditions diffusers, wall grilles,
          registers and other ventilating louvers.

     5.   Dust the exterior surfaces of lighting fixtures, including glass and
          plastic enclosures.

     6.   Dust all mini blinds.

ELEVATORS:
---------

     1.   Carpets will be vacuumed daily and spot cleaned as necessary.

     2.   Exterior and interior doors and trim will be dusted nightly.

     3.   Cabinets will be dusted nightly.

     4.   Control and dispatch panels will be dusted and polished as necessary.

     5.   Elevator thresholds will be cleaned nightly.

     6.   Hardwood surfaces will be kept clean.

     7.   Telephones will be kept dust free.

                                      H-3
<PAGE>

GENERAL:
-------

     1.   Wipe all interior metal window frames, mullions, and other unpainted
          interior metal surfaces of the perimeter walls of the building each
          time the interior of the window is washed (as requested by the
          Manager).

     2.   Keep slopsink rooms in a clean, neat and orderly condition at all
          times.

     3.   Wipe clean and polish all metal hardware fixtures and other bright
          work nightly.

     4.   Dust and/or wash all directory boards as required, remove fingerprints
          and smudges nightly.

     5.   Maintain building lobby, corridors and other public areas in a clean
          condition.

     6.   Dust fire extinguishers and cabinets nightly (interior and exterior);
          wash as necessary.

     7.   All baseboards (resilient flooring and carpeted areas) will be washed
          and wiped clean as necessary.

     8.   Vacuum entrance mats nightly.

     9.   Perform special cleaning needs of individual tenants only as
          authorized and directed by the Manger.

     10.  Properly maintain exterior of building at ground level by ensuring
          that curtain wall, glass, marble, etc., is kept in a clean condition.
          Exterior stainless steel is to be cleaned or polished weekly.

     11.  Polish standpipes and sprinkler siamese connections as necessary.

     12.  Wash all interior windows semi-annually.

     13.  Police parking lot, paying particular attention to drains, corners,
          curbs and general policing of grounds.

     14.  Janitors will change out florescent lights as necessary.  Janitors
          will order and receive shipments.

     15.  All cleaning equipment will be provided by janitorial contractor.
          Paper products will be ordered and received by janitors.  Landlord
          will provide janitor with supply vendor.

                                      H-4
<PAGE>

LIABILITY INSURANCE
-------------------

     1.   Contractors shall at all times during this contract maintain in force
          a policy of liability and property damage insurance of at least
          $200,000, and shall name The Boyer Company as an additional insured in
          said policy. Contractors shall provide evidence of such coverage to
          The Boyer Company.

                                      H-5
<PAGE>

                                  EXHIBIT "I"

                         BUILDING RULES AND REGULATIONS

     The following rules and regulations shall apply, where applicable, to the
Premises, the Building, the parking garage (if any), the Property and the
appurtenances.  Capitalized terms have the same meaning as defined in the Lease.

1.   Sidewalks, doorways, vestibules, halls, stairways and other similar areas
     shall not be obstructed by Tenant or used by Tenant for any purpose other
     than ingress and egress to and from the Premises.  No rubbish, litter,
     trash, or material shall be placed, emptied, or thrown in those areas.  At
     no time shall Tenant permit Tenant's employees to loiter in Common Areas or
     elsewhere about the Building or Property.

2.   Plumbing fixtures and appliances shall be used only for the purposes for
     which designed, and no sweepings, rubbish, rags or other unsuitable
     material shall be thrown or placed in the fixtures or appliances.  Damage
     resulting to fixtures or appliances by Tenant, its agents, employees or
     invitees, shall be paid for by Tenant, and Landlord shall not be
     responsible for the damage.

3.   No signs, advertisements or notices shall be painted or affixed to windows,
     doors or other parts of the Building, except those of such color, size,
     style and in such places as are first approved in writing by Landlord.  All
     tenant identification and suite numbers at the entrance to the Premises
     shall be installed by Landlord, at Tenant's cost and expense, using the
     standard graphics for the Building. Except in connection with the hanging
     of lightweight pictures and wall decorations, no nails, hooks or screws
     shall be inserted into any part of the Premises or Building except by the
     Building maintenance personnel.

4.   Landlord may provide and maintain in the first floor (main lobby) of the
     Building an alphabetical directory board or other directory device listing
     tenants, and no other directory shall be permitted unless previously
     consented to by Landlord in writing.

5.   Tenant shall not place any lock(s) on any door in the Premises or Building
     without Landlord's prior written consent and Landlord shall have the right
     to retain at all times and to use keys to all locks within and into the
     Premises.  A reasonable number of keys to the locks on the entry doors in
     the Premises shall be furnished by Landlord to Tenant at Tenant's cost, and
     Tenant shall not make any duplicate keys.  All keys shall be returned to
     Landlord at the expiration or early termination of this Lease.

6.   All contractors, contractor's representatives and installation technicians
     performing work in the Building shall be subject to Landlord's prior
     approval and shall be required to comply with Landlord's standard rules,
     regulations, policies and procedures, which may be revised from time to
     time.

                                      I-1
<PAGE>

7.   Movement in or out of the Building of furniture or office equipment, or
     dispatch or receipt by Tenant of merchandise or materials requiring the use
     of elevators, stairways, lobby areas or loading dock areas, shall be
     restricted to hours designated by Landlord.  Tenant shall obtain Landlord's
     prior approval by providing a detailed listing of the activity.  If
     approved by Landlord, the activity shall be under the supervision of
     Landlord and performed in the manner required by Landlord.  Tenant shall
     assume all risk for damage to articles moved and injury to any persons
     resulting from the activity.  If equipment, property, or personnel of
     Landlord or of any other party is damaged or injured as a result of or in
     connection with the activity, Tenant shall be solely liable for any
     resulting damage or loss.

8.   Landlord shall have the right to approve the weight, size, or location of
     heavy equipment or articles in and about the Premises.  Damage to the
     Building by the installation, maintenance, operation, existence or removal
     of Tenant's Property shall be repaired at Tenant's sole expense.

9.   Corridor doors, when not in use, shall be kept closed.  Nothing shall be
     swept or thrown into the corridors, halls, elevator shafts or stairways.
     No birds or animals (other than seeing-eye dogs) shall be brought into or
     kept in, on or about any tenant's leased premises.  No portion of any
     tenant's leased premises shall at any time be used or occupied as sleeping
     or lodging quarters.

10.  Tenant shall not:  (1) make or permit any improper, objectionable or
     unpleasant noises or odors in the Building, or otherwise interfere in any
     way with other tenants or persons having business with them; (2) solicit
     business or distribute, or cause to be distributed, in any portion of the
     Building, handbills, promotional materials or other advertising; or (3)
     conduct or permit other activities in the Building that might, in
     Landlord's sole opinion, constitute a nuisance.

11.  Tenant shall cooperate with Landlord's employees in keeping its leased
     premises neat and clean.  Tenants shall not employ any person for the
     purpose of such cleaning other than the Building's cleaning and maintenance
     personnel.

12.  No flammable, explosive or dangerous fluids or substances shall be used or
     kept by Tenant in the Premises, Building or about the Property.  Tenant
     shall not, without Landlord's prior written consent, use, store, install,
     spill, remove, release or dispose of, within or about the Premises or any
     other portion of the Property, any asbestos-containing materials or any
     solid, liquid or gaseous material now or subsequently considered toxic or
     hazardous under the provisions of 42 U.S.C. Section 9601 et seq. or any
     other applicable environmental Law which may now or later be in effect.
     Tenant shall comply with all Laws pertaining to and governing the use of
     these materials by Tenant, and shall remain solely liable for the costs of
     abatement and removal.

13.  Tenant shall not use or occupy the Premises in any manner or for any
     purpose which might injure the reputation or impair the present or future
     value of the Premises or the

                                      I-2
<PAGE>

     Building. Tenant shall not use, or permit any part of the Premises to be
     used, for lodging, sleeping or for any illegal purpose.

14.  Tenant shall not take any action which would violate Landlord's labor
     contracts or which would cause a work stoppage, picketing, demonstration,
     labor disruption or dispute, or interfere with Landlord's or any other
     tenant's or occupant's business or with the rights and privileges of any
     person lawfully in the Building ("Labor Disruption").  Tenant shall take
     the actions necessary to resolve the Labor Disruption, and shall have
     pickets removed and, at the request of Landlord, immediately terminate any
     work in the Premises that gave rise to the Labor Disruption, until Landlord
     gives its written consent for the work to resume.  Tenant shall have no
     claim for damages against Landlord or any of the Landlord Related Parties,
     nor shall the Commencement Date of the Term be extended as a result of the
     above actions.

15.  Tenant shall not install, operate or maintain in the Premises or in any
     other area of the Building, electrical equipment that would overload the
     electrical system beyond its capacity for proper, efficient and safe
     operation as determined solely by Landlord.  Tenant shall not furnish
     cooling or heating to the Premises, including, without limitation, the use
     of electronic or gas heating devices, without Landlord's prior written
     consent.  Tenant shall not use more than its proportionate share of
     telephone lines and other telecommunication facilities available to service
     the Building.

16.  Tenant shall not operate or permit to be operated a coin or token operated
     vending machine or similar device (including, without limitation,
     telephones, lockers, toilets, scales, amusement devices and machines for
     sale of beverages, foods, candy, cigarettes and other goods), except for
     machines for the exclusive use of Tenant's employees.

17.  Bicycles and other vehicles are not permitted inside the Building or on the
     walkways outside the Building, except in areas designated by Landlord.

18.  Landlord may from time to time adopt systems and procedures for the
     security and safety of the Building, its occupants, entry, use and
     contents.  Tenant, its agents, employees, contractors, guests and invitees
     shall comply with Landlord's systems and procedures.

19.  Landlord shall have the right to prohibit the use of the name of the
     Building or any other publicity by Tenant that in Landlord's sole opinion
     may impair the reputation of the Building or its desirability.  Upon
     written notice from Landlord, Tenant shall refrain from and discontinue
     such publicity immediately.

20.  Tenant shall not canvass, solicit or peddle in or about the Building or the
     Property.

21.  Neither Tenant nor its agents, employees, contractors, guests or invitees
     shall smoke or permit smoking in the Common Areas, unless the Common Areas
     have been declared a designated smoking area by Landlord, nor shall the
     above parties allow smoke from the Premises to emanate into the Common
     Areas or any other part of the Building.  Landlord

                                      I-3
<PAGE>

     shall have the right to designate the Building (including the Premises) as
     a non-smoking building.

22.  Landlord shall have the right to designate and approve standard window
     coverings for the Premises and to establish rules to assure that the
     Building presents a uniform exterior appearance.  Tenant shall ensure, to
     the extent reasonably practicable, that window coverings are closed on
     windows in the Premises while they are exposed to the direct rays of the
     sun.

23.  Deliveries to and from the Premises shall be made only at the times, in the
     areas and through the entrances and exits designated by Landlord.  Tenant
     shall not make deliveries to or from the Premises in a manner that might
     interfere with the use by any other tenant of its premises or of the Common
     Areas, any pedestrian use, or any use which is inconsistent with good
     business practice.

24.  The work of cleaning personnel shall not be hindered by Tenant after 5:30
     p.m., and cleaning work may be done at any time when the offices are
     vacant. Windows, doors and fixtures may be cleaned at any time.  Tenant
     shall provide adequate waste and rubbish receptacles to prevent
     unreasonable hardship to the cleaning service.

25.  Landlord will not be responsible for lost or stolen personal property,
     money or jewelry from tenant's leased premises or public or common areas
     regardless of whether such loss occurs when the area is locked against
     entry or not.

26.  No tenant may enter into phone rooms, electrical rooms, mechanical rooms,
     or other service areas of the Building unless accompanied by Landlord or
     the Building manager.

27.  All vehicles are to be currently licensed, in good operating condition,
     parked for business purposes having to do with Tenant's business operated
     in the Premises, parked within designated parking spaces, one vehicle to
     each space.  No vehicle shall be parked as a "billboard" vehicle in the
     parking lot.  Any vehicle parked improperly may be towed away.  Tenant,
     Tenant's agents, employees, vendors and customers who do not operate or
     park their vehicles as required shall subject the vehicle to being towed at
     the expense of the owner or driver.  Landlord may place a "boot" on the
     vehicle to immobilize it and may levy a charge of $50.00 to remove the
     "boot."  Tenant shall indemnify, hold and save harmless Landlord of any
     liability arising from the towing or booting of any vehicles belonging to a
     Tenant Party.

                                      I-4<PAGE>

                                                                    Exhibit 10.1

                                 NO. 96-CI-08327

A. R. MILKES AND D. R. BURKLEW,         (S)          IN THE DISTRICT COURT
on behalf of themselves and all other   (S)
limited partners of Courtyard by        (S)
Marriott II Limited Partnership         (S)
                                        (S)
v.                                      (S)
                                        (S)
HOST MARRIOTT CORPORATION,              (S)
MARRIOTT INTERNATIONAL, INC.            (S)          OF BEXAR COUNTY, TEXAS
CBM TWO CORPORATION,                    (S)
COURTYARD MANAGEMENT                    (S)
CORPORATION, HOST                       (S)
INTERNATIONAL INC.,                     (S)
STEPHEN RUSHMORE and                    (S)
HOSPITALITY VALUATION                   (S)
SERVICES, INC.                          (S)          285th JUDICIAL DISTRICT

                                -----------------

                                 NO. 98-CI-04092

ROBERT M. HAAS, SR. and                 (S)          IN THE DISTRICT COURT OF
IRWIN RANDOLPH,                         (S)
JOINT TENANTS, ET AL.                   (S)
                                        (S)
VS.                                     (S)
                                        (S)
MARRIOTT INTERNATIONAL,                 (S)
INC.,  HOST MARRIOTT                    (S)
CORPORATION, CBM ONE                    (S)
CORPORATION, CBM TWO                    (S)
CORPORATION, COURTYARD                  (S)
MANAGEMENT CORPORATION,                 (S)
RIBM ONE CORPORATION,                   (S)
MARRIOTT RIBM TWO                       (S)
CORPORATION, RESIDENCE                  (S)
INN BY MARRIOTT, INC.,                  (S)
MARRIOTT FIBM ONE                       (S)
CORPORATION, FAIRFIELD                  (S)          BEXAR  COUNTY,  TEXAS
FMC CORPORATION, INC.,                  (S)
MARRIOTT DESERT SPRINGS                 (S)
CORPORATION, MARRIOTT                   (S)
DESERT SPRINGS DEVELOPMENT              (S)
<PAGE>

CORPORATION, MARRIOTT                   (S)
HOTEL SERVICES, INC.,                   (S)
MARRIOTT MARQUIS                        (S)
CORPORATION, MARRIOTT                   (S)
HOTELS, INC., HOST                      (S)
INTERNATIONAL, INC.,                    (S)
J.W. MARRIOTT, JR.,                     (S)
STEPHEN RUSHMORE and                    (S)
HOSPITALITY VALUATION                   (S)          57TH  JUDICIAL  DISTRICT

                              SETTLEMENT AGREEMENT
                              --------------------

         This Settlement Agreement, dated as of March 9, 2000, is made and
entered into by and among the following parties: (i) the representative
Plaintiffs, A.R. Milkes, Donald Burklew, Charles Carey, Linda McGuire-Raskin,
Mortimer Goodkin, Wesley Tinker, Robert M. Haas, Sr., and Marsha Hendler,
individually and on behalf of each of the members of the Courtyard by Marriott
II Limited Partnership ("CBM II LP") Class certified by the Order of the
Honorable Michael Peden, dated June 23, 1998, as modified on July 21, 1998 (the
"Milkes Plaintiffs"), by and through their counsel of record in the lawsuit
styled Cause No. 96-CI-08327; A.R. Milkes and D.R. Burklew v. Host Marriott
Corporation, et al.; in the 285th Judicial District Court, Bexar County, Texas
(the "Milkes Litigation"); (ii) each of the individual named Plaintiffs in the
lawsuit styled Cause No. 98-CI-04092; Robert M. Haas, Sr., et al. v. Host
Marriott Corporation, et al.; in the 57th Judicial District Court of Bexar
County, Texas (the "Haas Litigation"), together with all putative class members
(the "Haas Plaintiffs"), by and through their counsel of record in the Haas
Litigation; (iii) the Palm and Equity Intervenors as defined herein, by and
through their counsel of record in the Milkes and Haas Litigation; and (iv) the
Defendants, Host Marriott Corporation, Marriott International, Inc., CBM One LLC
(successor by merger to CBM One Corporation), CBM Two LLC (successor by merger
to CBM Two Corporation), Host

Settlement Agreement - Page 2
<PAGE>

International, Inc., Courtyard by Marriott II Limited Partnership, RIBM One LLC
(successor by merger to RIBM One Corporation), RIBM Two LLC (successor by merger
to Marriott RIBM Two Corporation), Residence Inn by Marriott, Inc., FIBM One LLC
(successor by merger to Marriott FIBM One Corporation), Fairfield FMC
Corporation, Inc., HMC Desert LLC (successor by merger to Marriott Desert
Springs Corporation), Marriott Desert Springs Development Corporation, Marriott
Hotel Services, Inc., Marriott Marquis Corporation, Marriott Hotels, Inc.,
Courtyard Management Corporation and J.W. Marriott, Jr., by and through their
counsel of record in the Milkes and Haas Litigations. The Milkes Plaintiffs, the
Haas Plaintiffs, the Palm Intervenors, the Equity Intervenors and the Defendants
are collectively referred to as the "Settling Parties." This Settlement
Agreement is intended by the Settling Parties to fully, finally and forever
resolve, discharge and settle the Released Claims, as defined herein, upon and
subject to the terms and conditions hereof.

         WHEREAS:

I.       RECITALS
         --------

         A.       THE MILKES LITIGATION
                  ---------------------

         On June 7, 1996, Whitey Ford and 136 other limited partners in CBM II
LP instituted suit. On September 20, 1996, the suit was amended to include 443
CBM II LP limited partners. By March 17, 1997, approximately 454 CBM II LP
limited partners had joined the Milkes Litigation.

         On January 29, 1998, representative Plaintiffs, A.R. Milkes and D.R.
Burklew, filed a class action lawsuit, on behalf of themselves and a proposed
class of current and former CBM II LP limited partners, against certain
defendants. On June 23, 1998, the Court certified the Milkes Litigation as a
Class action pursuant to the Texas Rules of Civil Procedure 42(a) and (b) with

Settlement Agreement - Page 3

<PAGE>

the Class defined as "all limited partners in the CBM II LP as of January 31,
1998; excluding, however, the defendants, their parent corporations,
subsidiaries and affiliates, and their predecessors and successors in interest,
and the present officers, directors, or employees of any defendant or of any
predecessor or successor in interest of any Defendant" (the "CBM II LP Class").

         The Court appointed as representative Plaintiffs, A.R. Milkes, D.R.
Burklew, Charles Carey, Mortimer Goodkin, Linda McGuire-Raskin, Wesley Tinker,
Robert M. Haas, Sr. and Marsha Hendler, and by Order dated July 21, 1998, named
as Lead Class Counsel, David Berg and the law firm of Berg, Androphy & Wilson.
The Court further designated, as co-counsel for the CBM II LP Class, Stephen
Hackerman and the law firm of Hackerman, Peterson, Frankel & Manela; David E.
Warden, and the law firm of Yetter & Warden; James L. Branton, and the law firm
of Branton & Hall; James Moriarty and the law firm of Moriarty & Associates, PC;
J. Boyd Page and the law firm of Page & Bacek, LLP; Linda Broocks and the law
firm of Ogden, Gibson, White & Broocks, LLP; Charles E. Dorr and the law firm of
Charles E. Dorr, P.C.; Roy Barrera, Sr. and the law firm of Nicholas & Barrera,
P.C.; and J.A. Canales and the law firm of Canales & Simonson. Lead Class
Counsel and co-counsel are hereinafter collectively referred to as "Plaintiffs'
Counsel."

         A Notice of Pendency of Class Action was sent, in a form and manner
approved by the Court (the "CBM II LP Notice of Pendency"), to members of the
CBM II LP Class, advising them of the pendency of the Milkes Litigation and
giving them the right to request exclusion therefrom, and notifying them that
any CBM II LP Class member who failed to request exclusion as provided in the
CBM II LP Notice of Pendency would be bound by any judgment subsequently
rendered therein. Certain limited partners of CBM II LP, namely the Equity and

Settlement Agreement - Page 4
<PAGE>

Palm Intervenors, requested exclusion from the CBM II LP Class. The CBM II LP
Notice of Pendency satisfied the requirements of Texas Rule of Civil Procedure
42 regarding, among other things, the rights of CBM II LP Class members to
request exclusion from the Milkes Litigation, and no additional opportunity to
request exclusion is required.

         After opting-out of the CBM II LP Class, on March 11, 1999, Palm
Investors, LLC, as a limited partner in CBM II LP and as an alleged assignee of
all right, title and interest formerly held by certain CBM II LP limited
partners, by and through its counsel of record, R. James George and the law firm
of George & Donaldson, LLP ("Palm's Counsel"), intervened in the Milkes
Litigation (the "Palm Intervenors"). Similarly, on March 25, 1999, Equity
Resource Fund X, Equity Resource Fund XV, Equity Resource Fund XVI, Equity
Resource Fund XVII, Equity Resource Fund XX, Equity Resource Fund XXI, Equity
Resource Bay Fund, Equity Resource Bridge Fund and Equity Resource Pilgrim Fund,
by and through their counsel of record, J. Patrick Deely and the law firm of
Cheslock, Deely & Rapp ("Equity's Counsel"), filed their Plea in Intervention,
on behalf of themselves and as alleged assignees of all right, title and
interest formerly held by certain CBM II LP limited partners (the "Equity
Intervenors").

         On August 27, 1999, CBM Two LLC, the General Partner of CBM II LP,
appointed a Special Litigation Committee (the "SLC"), consisting of the
Honorable William H. Webster and the Honorable Charles B. Renfrew, to
investigate, review and analyze the facts and circumstances surrounding the
alleged derivative claims asserted on behalf of CBM II LP in the Milkes
Litigation. The SLC retained, as its counsel, Richard C. Tufaro and the law firm
of Milbank, Tweed, Hadley & McCloy, LLP (the "SLC's Counsel").

         On January 19, 2000, the Court signed an Order granting J.W. Marriott,
Jr.'s Special Appearance and dismissing him from the Milkes Litigation.

Settlement Agreement - Page 5
<PAGE>

         The Milkes Litigation alleges, among other things, that the Defendants,
or some of them: (1) breached and knowingly participated in breaches of
fiduciary duties to the limited partners in CBM II LP and to CBM II LP; (2)
defrauded and conspired to defraud the CBM II LP limited partners and CBM II LP;
(3) conspired against the CBM II LP limited partners and CBM II LP; (4) violated
the TEXAS FREE ENTERPRISE & ANTITRUST ACT OF 1983; (5) breached certain
contracts; and (6) tortiously interfered with certain contracts. Defendants
denied all allegations contained in the Milkes Lawsuit and have raised numerous
affirmative defenses thereto, including, without limitation, the statutes of
limitations.

         B.       THE HAAS LITIGATION
                  -------------------

         On March 16, 1998, Robert M. Haas, Sr. and Irwin Randolph, joint
tenants, et al., filed suit against Defendants, Marriott International, Inc.,
Host Marriott Corporation, CBM One LLC (successor by merger to CBM One
Corporation), CBM Two LLC (successor by merger to CBM Two Corporation), Host
International, Inc., Courtyard by Marriott II Limited Partnership, RIBM One LLC
(successor by merger to RIBM One Corporation), RIBM Two LLC (successor by merger
to Marriott RIBM Two Corporation), Residence Inn by Marriott, Inc., FIBM One LLC
(successor by merger to Marriott FIBM One Corporation), Fairfield FMC
Corporation, Inc., HMC Desert LLC (successor by merger to Marriott Desert
Springs Corporation), Marriott Desert Springs Development Corporation, Marriott
Hotel Services, Inc., Marriott Marquis Corporation, Marriott Hotels, Inc.,
Courtyard Management Corporation, J.W. Marriott, Jr., Stephen Rushmore and
Hospitality Valuation Services, Inc. Thereafter, on March 18, 1999, Jack L.
Walker and Maury F. Weiss, individually and on behalf of certain limited
partners in Courtyard by Marriott Limited Partnership ("CBM I LP"), filed a
Class Action Petition in Intervention against Defendants. On March 26, 1999,
Palm Investors, LLC, on behalf of itself and as an alleged assignee of all
rights, title and interests formerly held by certain limited partners in CBM I
LP, by and through Palm's Counsel, filed its Plea in Intervention. On April 5,
1999, Equity Resource Fund XI, Equity Resource Fund XIV, Equity Resource Fund
XV, Equity Resource Fund XVII, Equity Resource Fund XX, Equity Resource Fund
XXI, Equity Resource Bay Fund, Equity Resource Bridge Fund and Equity Resource
Pilgrim Fund, on behalf of themselves and as alleged

Settlement Agreement - Page 6
<PAGE>

assignees of all rights, titles and interests formally held by limited partners
in CBM I LP, Palm's Counsel, filed its Plea in Intervention. On April 5, 1999,
Equity Resourse Fund XI, Equity Resource Fund XIV, Equity Resource Fund XV,
Equity Resource Fund XVII, Equity Resource Fund XX, Equity Resource Fund XXI,
Equity Resource Bay Fund, Equity Resource Bridge Fund and Equity Resource
Pilgrim Fund, on behalf of themselves and as alleged assignees of all rights,
titles and interests formally held by limited partners in CMB I LP, by and
through Equity's Counsel, filed its Plea in Intervention. Thereafter,
Intervenors Walker and Weiss moved for certification of a class of certain
limited partners of CBM I LP, which was denied by the Court.

         On August 17, 1999, CBM One LLC, the General Partner of CBM I LP,
appointed the SLC to investigate, review and analyze the facts and circumstances
surrounding the alleged derivative claims asserted on behalf of CBM I LP in the
Haas Litigation.

         The Haas Litigation involves the following limited partnerships: CBM I
LP, Marriott Residence Inn Limited Partnership ("Residence Inn I LP"), Marriott
Residence Inn II Limited Partnership ("Residence Inn II LP"), Fairfield Inn by
Marriott Limited Partnership ("Fairfield Inn LP"), Desert Springs Marriott
Limited Partnership ("Desert Springs LP") and Atlanta Marriott Marquis Limited
Partnership and Atlanta Marriott Marquis II Limited Partnership (collectively
"Atlanta Marquis LP"), which are collectively referred to as the Haas Litigation
limited partnerships. The Complaint and Pleas in Intervention in the Haas
Litigation allege, among other things, that the Defendants, or some of them: (1)
breached and knowingly participated in breaches of fiduciary duties to various
limited partners and partnerships in the Haas Litigation limited partnerships;
(2) defrauded and conspired to defraud various limited partners and partnerships
in the Haas Litigation limited partnerships; (3) conspired against

Settlement Agreement - Page 7
<PAGE>

various limited partners and partnerships in the Haas Litigation limited
partnerships; (4) violated the TEXAS FREE ENTERPRISE & ANTITRUST ACT OF 1983;
(5) breached certain contracts; and (6) tortiously interfered with certain
contracts. Defendants denied all allegations contained in the Haas Litigation,
and have raised numerous defenses thereto, including, without limitation, the
statutes of limitations.

II.      PRETRIAL PROCEEDINGS AND DISCOVERY IN THE MILKES AND HAAS LITIGATIONS
         ---------------------------------------------------------------------

         Extensive discovery and investigation have been conducted in the Milkes
Litigation and, to a lesser degree, the Haas Litigation, including, inter alia:
(i) inspecting hundreds of thousands of pages of documents produced by the
Defendants and non-parties; (ii) deposing numerous present and former employees
of the Defendants; (iii) deposing Plaintiffs; (iv) deposing non-party witnesses;
(v) employing and consulting with experts, including reviewing and producing
expert reports and attending and taking expert depositions; (vi) reviewing
public and on-line filings; and (vii) researching applicable law with respect to
the claims asserted in the Milkes and Haas Litigations. Discovery in the Milkes
Litigation included documents and deposition testimony relevant to claims in the
Haas Litigation. Settlement discussions, individually, with a mediator and with
the SLC, have been intense and protracted.

III.     THE BENEFITS OF SETTLEMENT
         --------------------------

         Plaintiffs' Counsel believe that the claims asserted in the Milkes and
Haas Litigations have merit. They all recognize and acknowledge, however, the
risks and uncertainties associated with the continued prosecution of this
time-consuming litigation, and therefore, believe, that in consideration of all
the circumstances, the proposed Settlement set forth in this Settlement
Agreement confers substantial benefits upon the Plaintiffs and that the
Settlement is fair,

Settlement Agreement - Page 8
<PAGE>

adequate, reasonable and in the best interest of the Plaintiffs, the Palm
Intervenors and the Equity Intervenors. The SLC and the SLC's Counsel also
believe that, with respect to CBM I LP subject to Paragraph 9.3 below, and CBM
II LP, the Settlement is fair, adequate and reasonable and it is in the best
interests of the Settling Parties for the SLC to resolve the derivative claims
relating to CBM I LP and CBM II LP.

IV.      DEFENDANTS' DENIALS OF WRONGDOING AND LIABILITY
         -----------------------------------------------

         The Defendants have denied and continue to deny each and all of the
claims and contentions of wrongdoing or liability against them arising out of
the conduct, statements, acts or omissions alleged, or that could have been
alleged, in the Milkes and Haas Litigations. The Defendants also have denied and
continue to deny, inter alia, that: (1) any Defendant has breached any contracts
or fiduciary duties; (2) any fraud, deceit or misrepresentations occurred in
connection with the formation, operation or management of any hotel or hotel
limited partnership connected with any of these Defendants; and (3) anyone was
harmed by any conduct alleged in the Milkes and Haas Litigations.

         Nonetheless, although each deny wrongdoing of any kind whatsoever and
without admitting liability, the Defendants have concluded that the further
conduct of the Milkes and Haas Litigations would be protracted and expensive,
and that it is desirable that the Milkes and Haas Litigations be fully and
finally settled in the manner and upon the terms and conditions set forth in
this Settlement Agreement in order to limit the burden, expense, inconvenience
and distraction caused by the Milkes and Haas Litigations and to repurchase the
CBM I LP Units and CBM II LP Units. The Defendants also have taken into account
the uncertainties and risks inherent in complex litigation.

Settlement Agreement - Page 9
<PAGE>

V.       THE TERMS OF THE SETTLEMENT AGREEMENT AND THE AGREEMENT OF SETTLEMENT
         ---------------------------------------------------------------------

         NOW, THEREFORE, IT IS HEREBY STIPULATED AND AGREED by and among the
Plaintiffs, the Palm Intervenors, the Equity Intervenors, the SLC and the
Defendants, by and through their counsel of record in the Milkes and Haas
Litigations, that, subject to the approval of the Court, the Milkes and Haas
Litigations and the Released Claims shall be finally and fully compromised and
settled, and the Milkes and Haas Litigations shall be dismissed on the merits
and with prejudice as to the Defendants, upon and subject to the terms and
conditions of this Settlement Agreement, as follows:

         1.   Definitions
              -----------

         As used in this Settlement Agreement the following terms have the
meanings specified below:

         1.1  "Atlanta Marquis LP" means the Atlanta Marriott Marquis Limited
Partnership and Atlanta Marriott Marquis II Limited Partnership.

         1.2 "Atlanta Marquis LP's Counsel" means Lawrence P. Kolker and the law
firm of Wolf, Haldenstein, Adler, Freeman & Herz, LLP, and Martin D. Chitwood
and the law firm of Chitwood and Harley.

         1.3 "Atlanta Marquis LP Notice" means the Notice of Proposed Settlement
of Class Action and Settlement Hearing to be given to the Atlanta Marquis LP
Class which will be certified as part of the Atlanta Marquis LP Settlement, and
to the Palm Intervenors and the Equity Intervenors, if any, who formerly owned
units in Atlanta Marquis LP.

         1.4  "Atlanta Marquis LP Plaintiffs" means all persons named as parties
in the Haas Litigation and who formerly owned units in the Atlanta Marquis LP.

Settlement Agreement - Page 10
<PAGE>

         1.5  "Atlanta Marquis LP Proof of Claim" means the Atlanta Marquis LP
Proof of Claim and Release.

         1.6  "Atlanta Marquis LP Settlement" means the settlement of the Sturm
Litigation.

         1.7  "Atlanta Marquis LP Settlement Amount" means the aggregate of
$4.25 million or $8,018.86 for each of the former 530 Atlanta Marquis LP Units
that does not opt-out of the Atlanta Marquis Settlement and executes the Atlanta
Marquis LP Proof of Claim, reduced, however, by $8,018.86 for each Atlanta
Marquis LP Unit below 530 which fails to settle as provided herein.

         1.8  "Atlanta Marquis LP Unit" means a unit of limited partnership
interest in Atlanta Marquis LP.

         1.9  "CBM I LP" means the Courtyard by Marriott Limited Partnership.

         1.10 "CBM I LP Consent Form" means the form contained in the CBM I LP
Purchase Offer/Consent Solicitation Statement to be completed and returned to
the Claims Administrator to vote on the Proposed CBM I LP Partnership Agreement
Amendments and CBM I LP Merger.

Settlement Agreement - Page 11
<PAGE>

         1.11 "CBM I LP Purchase Offer/Consent Solicitation Statement" means the
Purchase/Offer Consent Solicitation Statement which may be set forth in one or
more documents, to be prepared by the Joint Venture and CBM I LP for inclusion
in the CBM I LP Notice and, following Court approval of the CBM I LP Notice,
distributed to the limited partners of CBM I LP seeking (i) their written
consent to the CBM I LP Merger and the Proposed CBM I LP Partnership Agreement
Amendments; and (ii) their assignment, transfer and conveyance to the Joint
venture or one or more of its designees of all right, title and interest in all
CBM I LP Units, half-CBM I LP Units and other fractional CBM I LP Units owned by
such person, together with all right, title and interest held, owned or claimed
in CBM I LP, free and clear of all pledges, security interests, liens and other
encumbrances whatsoever.

         1.12 "CBM I LP Merger" means the merger of a subsidiary of the Joint
Venture with and into CBM I LP, with CBM I LP surviving, pursuant to an
agreement and plan of merger to be entered into and attached to the CBM I LP
Purchase Offer/Consent Solicitation Statement, as more particularly described in
Paragraph 2.9(b) hereof.

         1.13 "CBM I LP Notice" means the Notice of Proposed Settlement of Class
Action and Settlement Hearing and the CBM I LP Purchase Offer/Consent
Solicitation Statement and Consent Form which will be approved by the Court and
given to the CBM I LP Class which will be certified as part of the CBM I LP
Settlement, and to the Palm Intervenors and Equity Intervenors who own CBM I LP
Units.

         1.14 "CBM I LP Plaintiffs" means all persons named as parties in the
Haas Litigation who own units in and/or a claim concerning CBM I LP, other than
the Palm Intervenors and the Equity Intervenors, and all putative members of the
CBM I LP Class to be certified in the Haas Litigation.

Settlement Agreement - Page 12
<PAGE>

         1.15 "CBM I LP Proof of Claim" means the CBM I LP Proof of Claim,
Assignment and Release.

         1.16 "CBM I LP Settlement" means the satisfaction of all the Settlement
terms and conditions as set forth herein.

         1.17 "CBM I LP Settlement Amount" means the aggregate of
$154,249,500.00 or $134,130.00 for each of the 1,150 CBM I LP Units, $67,065 for
each half-CBM I LP Unit, or a reduced pro-rata amount for each other fractional
CBM I LP Unit, that is assigned, transferred and conveyed to the Joint Venture
or to one or more its designees pursuant to this Settlement Agreement and for
which a CBM I LP Proof of Claim is provided pursuant to the CBM I LP Unit
Acquisition, the aggregate amount reduced, however, by $134,130.00 per CBM I LP
 Unit, or a pro-rata amount for each half-CBM I LP Unit or fractional CBM I LP
Unit below 1,150 CBM I LP Units which is not so assigned, transferred or
conveyed (including the 15 CBM I LP Units held by CBM One LLC) and reduced
further by the amount, if any, a holder of any CBM I LP Unit owes on the
purchase price of such unit.

         1.18 "CBM I LP Unit" means a unit of limited partnership interest in
CBM I LP.

         1.19 "CBM I LP Unit Acquisition" means the acquisition by the Joint
Venture or one of more of its designees of the CBM I LP Units held by the CBM I
LP Plaintiffs, the Palm Intervenors, the Equity Intervenors and Insiders
(excluding CBM One LLC).

         1.20 "CBM I LP Unit Acquisition Closing Date" means the date on which
the CBM I LP Unit Acquisition is consummated.

         1.21 "CBM II LP" means the Courtyard by Marriott II Limited
Partnership.

Settlement Agreement - Page 13
<PAGE>

         1.22 "CBM II LP Consent Form" means the form contained in the CBM II LP
Purchase Offer/Consent Solicitation Statement to be completed and returned to
the Claims Administrator to vote on the Proposed CBM II LP Partnership Agreement
Amendments and CBM II LP Merger.

         1.23 "CBM II LP Purchase Offer/Consent Solicitation Statement" means
the Purchase/Offer Consent Solicitation Statement, which may be set forth in one
or more documents, to be prepared by the Joint Venture and CBM II LP for
inclusion in the CBM II LP Notice and, following Court approval of the CBM II LP
Notice, distributed to the limited partners of CBM II LP seeking (i) their
written consent to the CBM II LP Merger and the Proposed CBM II LP Partnership
Agreement Amendments; and (ii) their assignment, transfer and conveyance to the
Joint Venture or one or more of its designees of all right, title and interest
in all CBM II LP Units, half-CBM II LP Units and other fractional CBM II LP
Units owned by such person, together with all right, title and interest held,
owned or claimed in CBM II LP, free and clear of all pledges, security
interests, liens and other encumbrances whatsoever.

         1.24 "CBM II LP Merger" means the merger of a subsidiary of the Joint
Venture with and into CBM II LP, with CBM II LP surviving, pursuant to an
agreement and plan of merger to be entered into and attached to the CBM II LP
Purchase Offer/Consent Solicitation Statement, as more particularly described in
Paragraph 3.8(b) hereof.

         1.25 "CBM II LP Notice" means the Notice of Proposed Settlement of
Class Action and Settlement Hearing and the CBM II LP Purchase Offer/Consent
Solicitation Statement and Consent Form will be approved by the Court and given
to the CBM II LP Class, and to the Palm Intervenors and the Equity Intervenors
who own CBM II LP Units.

         1.26 "CBM II LP Plaintiffs" means all persons named as parties in the
Milkes

Settlement Agreement - Page 14
<PAGE>

Litigation, who own units in and/or a claim concerning CBM II LP, other than the
Palm Intervenors and the Equity Intervenors, together with all members of the
CBM II LP Class certified in the Milkes Litigation.

         1.27 "CBM II LP Proof of Claim" means the CBM II LP Proof of Claim,
Assignment and Release.

         1.28 "CBM II LP Settlement" means the satisfaction of all the
Settlement terms and conditions as set forth herein.

         1.29 "CBM II LP Settlement Amount" means the aggregate of
$217,499,730.00 or $147,959.00 for each of the 1,470 CBM II LP Units, $73,979.50
for each half-CBM II LP Unit, or a reduced pro-rata amount for each other
fractional CBM II LP Unit, that is assigned, transferred and conveyed to the
Joint Venture or to one or more of its designees pursuant to this Settlement
Agreement and for which a CBM II LP Proof of Claim is provided pursuant to the
CBM II LP Unit Acquisition, the aggregate amount reduced, however, by
$147,959.00 per CBM II LP Unit, or a pro-rata amount for each half-CBM II LP
Unit or fractional CBM II LP Unit below 1,470 CBM II LP Units which is not so
assigned, transferred or conveyed (including 21.5 CBM II LP Units held by CBM
Two LLC) and reduced further by the amount, if any, a holder of any CBM II LP
Unit owes on the purchase price of such unit.

         1.30 "CBM II LP Unit" means a unit of limited partnership interest in
CBM II LP.

         1.31 "CBM II LP Unit Acquisition" means the acquisition by the Joint
Venture or one or more of its designees of the CBM II LP Units held by the CBM
II LP Plaintiffs, the Palm Intervenors, the Equity Intervenors and Insiders
(excluding CBM Two LLC).

         1.32 "CBM II LP Unit Acquisition Closing Date" means the date on which
the CBM II LP Unit Acquisition is consummated.

Settlement Agreement - Page 15
<PAGE>

         1.33 "Claims Administrator" means GEMISYS, Proxy Department, 7103 South
Revere Parkway, Englewood, Colorado 80112.

         1.34 "Defendants" means Host Marriott Corporation, Marriott
International, Inc., CBM One LLC (successor by merger to CBM One Corporation),
CBM Two LLC (successor by merger to CBM Two Corporation), Host International,
Inc., Courtyard by Marriott II Limited Partnership, RIBM One LLC (successor by
merger to RIBM One Corporation), RIBM Two LLC (successor by merger to Marriott
RIBM Two Corporation), Residence Inn by Marriott, Inc., FIBM One LLC (successor
by merger to Marriott FIBM One Corporation), Fairfield FMC Corporation, Inc.,
Marriott Desert Springs LLC (successor by merger to Marriott Desert Springs
Corporation), Marriott Desert Springs Development Corporation, Marriott Hotel
Services, Inc., Marriott Marquis Corporation, Marriott Hotels, Inc., Courtyard
Management Corporation and J.W. Marriott, Jr.

         1.35 "Defendants' Counsel" means those attorneys and law firms
representing the Defendants in the Litigation.

         1.36 "Desert Springs LP" means the Desert Springs Marriott Limited
Partnership.

         1.37 "Desert Springs LP Notice" means the Notice of Proposed Settlement
of Class Action and Settlement Hearing to be given to the Desert Springs LP
Class which will be certified as part of the Desert Springs LP Settlement, and
to the Palm Intervenors and the Equity Intervenors who formerly owned units in
Desert Springs LP.

         1.38 "Desert Springs LP Plaintiffs" means all persons named as parties
in the Haas Litigation who formerly owned units in and/or a claim concerning the
Desert Springs LP, other than the Palm Intervenors and the Equity Intervenors,
and all putative members of the Desert Springs LP Class to be certified in the
Haas Litigation.

Settlement Agreement - Page 16
<PAGE>

         1.39 "Desert Springs LP Proof of Claim" means the Desert Springs LP
Proof of Claim and Release.

         1.40 "Desert Springs LP Settlement" means the satisfaction of all the
Settlement terms and conditions as set forth herein.

         1.41 "Desert Springs LP Settlement Amount" means the aggregate of
$12,111,000.00, or (i) $21,900.54 per unit to former holders of the 206 former
Desert Springs LP units who are currently Plaintiffs in the Haas Litigation that
do not opt-out of the Desert Springs LP Class and executes the Desert Springs LP
Proof of Claim, the aggregate amount reduced, however, by $21,900.54 for each
unit below 206 which fails to settle as provided herein; and (ii) $10,950.27 per
unit to the former holders of the 694 remaining former units of Desert Springs
LP as of December 28, 1998 that do not opt-out of the Desert Springs LP Class
and execute the Desert Springs LP Proof of Claim, the aggregate amount reduced,
however, by $10,950.27 for each unit below 694 which fails to settle as provided
herein.

         1.42 "Effective Date" means the business day on which the Judgment
Order becomes Final.

         1.43 "Equity Intervenors" shall mean Equity Resource Fund X, Equity
Resource Fund XII, Equity Resource Fund XIV, Equity Resource Fund XV, Equity
Resource Fund XVI, Equity Resource Fund XVII, Equity Resource Fund XX, Equity
Resource Fund XXI, Equity Resource Bay Fund, Equity Resource Bridge Fund, and
Equity Resource Pilgrim Fund, and any affiliate who purchased units in CBM I LP,
CBM II LP, Residence Inn I LP, Residence Inn II LP, Fairfield Inn LP, Desert
Springs LP, or Atlanta Marquis LP (if any).

         1.44 "Equity's Counsel" means J. Patrick Deely and the law firm of
Cheslock, Deely & Rapp.

Settlement Agreement - Page 17
<PAGE>

         1.45 "Escrow Agent" means Chase Bank of Texas, N.A.

         1.46 "Fairfield Inn LP" means the Fairfield Inn by Marriott Limited
Partnership.

         1.47 "Fairfield Inn LP Notice" means the Notice of Proposed Settlement
of Class Action and Settlement Hearing to be given to the Fairfield Inn LP Class
which will be certified as part of the Fairfield Inn LP Settlement, and to the
Palm Intervenors and the Equity Intervenors who own units in Fairfield Inn LP.

         1.48 "Fairfield Inn LP Plaintiffs" means all persons named as parties
in the Haas Litigation and who own units in and/or a claim concerning Fairfield
Inn LP, other than the Palm Intervenors and the Equity Intervenors, and all
putative members of the Fairfield Inn LP Class to be certified in the Haas
Litigation.

         1.49 "Fairfield Inn LP Proof of Claim" means the Fairfield Inn LP Proof
of Claim and Release.

         1.50 "Fairfield Inn LP Settlement" means the satisfaction of all the
Settlement terms and conditions as set forth herein.

         1.51 "Fairfield Inn LP Settlement Amount" means the aggregate of
$19,032,504.06, or $228.38 for each of the 83,337 Fairfield Inn LP partnership
units that does not opt-out of the Fairfield Inn LP Class and executes the
Fairfield Inn LP Proof of Claim, the aggregate amount reduced, however, by
$228.38 for each unit below 83,337 which fails to settle as provided herein.

         1.52 "Final" when referring to the Judgment Order or an appeal of the
Judgment Order means that: (a) the Judgment Order is a final, appealable
judgment; and (b) either (i) the time for filing or noticing of any appeal or
other judicial review of the Judgment Order has expired without any such appeal
or other review of the judgment having been commenced, or (ii) if an

Settlement Agreement - Page 18
<PAGE>

appeal or other review of the Judgment Order has been filed, such appeal or
other review is finally concluded and is no longer subject to review by any
court, whether by appeal, writ of certiorari or otherwise, and such appeal or
other review has been resolved in such manner as to permit the consummation of
the Settlement as contemplated by the Judgment Order; provided (iii) that an
appeal of the Judgment Order relating solely to the amount, allocation or other
issue relating to an award of attorneys' fees to Plaintiffs' Counsel and/or
Atlanta Marquis LP's Counsel shall not affect the finality of the Judgment Order
for purposes of this Settlement and the Judgment Order shall be deemed "Final"
notwithstanding such an appeal.

         1.53 "Haas Litigation" means the lawsuit styled: Cause No. 98-CI-04092;
Robert M. Haas, Sr., et al v. Host Marriott Corporation, et al; in the 57th
Judicial District Court of Bexar County, Texas (the "Court).

Settlement Agreement - Page 19
<PAGE>

         1.54 "Hearing Order" means the Order with Respect to Hearing on the
Settlement, Notice, and Plaintiffs' Counsels' and Atlanta Marquis LP's Counsels'
Applications for Attorneys' Fees and Reimbursement of Litigation Costs and
Expenses.

         1.55 "Host Marriott" means, individually and collectively, Host
Marriott Corporation, a Maryland corporation, and Host Marriott, L.P., a
Delaware limited partnership of which Host Marriott Corporation is the general
partner, and their respective successors and assigns.

         1.56 "Insiders" means those persons or entities related to Defendants
and identified on Exhibit "A."

         1.57 "Interest" means simple interest at the rate for one year
certificates of deposit as published in the Wall Street Journal "Money Rates" to
be adjusted (but not compounded) on a weekly basis on Monday of each week.

         1.58 "Joint Venture" means a to-be-formed Delaware limited liability
company owned by Rockledge and by an indirect wholly-owned subsidiary of
Marriott International, and each other Person in which it directly or indirectly
will have an ownership interest, and their respective successors and assigns.

         1.59 "Judgment Order" means the judgment order to be rendered by the
Court in the Milkes and Haas Litigations approving the fairness of the
Settlement, dismissing the Milkes and Haas Litigations with prejudice,
extinguishing as to the Released Persons the Released Claims and permanently
barring and enjoining such persons from asserting such Released Claims, and
addressing such other matters as the Court deems necessary and appropriate.

         1.60 "Marriott International" means Marriott International, Inc., a
Delaware Corporation, and its successors and assigns.

Settlement Agreement - Page 20
<PAGE>

         1.61 "Milkes Litigation" means the lawsuit styled: Cause No.
96-CI-08327; A.R. Milkes and D.R. Burklew v. Host Marriott Corporation, et al.;
in the 285th Judicial District Court of Bexar County, Texas (the "Court").

         1.62 "Net Settlement Amount" means:

              (a) as to each Plaintiff, the pro-rata portion of the settlement
amount due to such Plaintiff for a particular partnership, less Plaintiffs'
Counsel's Attorneys' Fees,; and reduced further by the amount, if any, such
Plaintiff owes on the purchase price of its unit.

              (b) as to the Palm Intervenors, the pro-rata portion of the
settlement amount due to the Palm Intervenors for a particular partnership,
without any deduction for Plaintiffs' Counsel's Attorneys' Fees, it being
understood that the Palm Intervenors shall be separately responsible for payment
of attorneys' fees and litigation costs and expenses to Palm's Counsel and that
no request for reimbursement from the Settlement Fund will be made by Palm's
Counsel to the Court;

              (c) as to the Equity Intervenors, the pro-rata portion of the
settlement amount due to the Equity Intervenors for a particular partnership,
without regard to any deduction for Plaintiffs' Counsel's Attorneys' Fees, it
being understood that the Equity Intervenors shall be separately responsible for
payment of attorneys' fees and litigation costs and expenses to Equity's Counsel
and that no request for reimbursement from the Settlement Fund will be made by
Equity's Counsel to the Court;

              (d) as to the Insiders, the pro-rata portion of the settlement
amount due to Insiders in the CBM I LP Settlement or the CBM II LP Settlement,
without regard to deduction for Plaintiffs' Counsel's Attorneys' Fees, it being
understood that the Insiders were not represented by Plaintiffs' Counsel and
will make no separate application for reimbursement of

Settlement Agreement - Page 21
<PAGE>

attorneys' fees or litigation costs.

         1.63 "Net Settlement Fund" means the Settlement Fund less (a)
Plaintiffs' Counsel's Attorneys' Fees; and (b) any and all payments to the
Equity Intervenors, the Palm Intervenors and/or the Insiders as set forth
herein.

         1.64 "Palm Intervenors" shall mean Palm Investors, LLC and any
affiliates who purchased CBM II LP or CBM I LP Units.

         1.65 "Palm's Counsel" means R. James George and the law firm of George
& Donaldson, LLP.

         1.66 "Person" means a natural person or entity, corporation,
partnership, limited partnership, association, joint stock company, limited
liability company, estate, legal representative, trust, unincorporated
association, government or any political subdivision or agency thereof, or any
business or legal entity, and its respective spouses, heirs, predecessors,
successors, representatives, agents or assigns.

         1.67 "Plaintiffs" means collectively all CBM I LP Plaintiffs, all CBM
II LP Plaintiffs, all Residence Inn I LP Plaintiffs, all Residence Inn II LP
Plaintiffs, all Fairfield Inn Plaintiffs, and all Desert Springs LP Plaintiffs.

         1.68 "Plaintiffs' Counsel" means David Berg and the law firm of Berg,
Androphy & Wilson; Stephen Hackerman and the law firm of Hackerman, Peterson,
Frankel & Manela; David E. Warden, and the law firm of Yetter & Warden; James L.
Branton, and the law firm of Branton & Hall; James Moriarty and the law firm of
Moriarty & Associates, PC; J. Boyd Page and the law firm of Page & Bacek, LLP;
Linda Broocks and the law firm of Ogden, Gibson, White & Broocks, LLP; Charles
E. Dorr and the law firm of Charles E. Dorr, P.C.; Roy Barrera, Sr. and the law
firm of Nicholas & Barrera, P.C.; and J.A. Canales and the law firm of Canales &

Settlement Agreement - Page 22
<PAGE>

Simonson.

         1.69 "Plaintiffs' Counsel's Attorneys' Fees" means the attorneys' fees
and reimbursement of litigation costs and expenses awarded by the Court to
Plaintiffs' Counsel less $4.25 million, the amount by which Plaintiffs' Counsel
has agreed to reduce their attorneys' fees pursuant to Paragraph 13.1 herein.

         1.70 "Plan of Allocation" means a plan or formula of allocation of the
Settlement Fund to be approved by the Court whereby the Settlement Fund and the
Net Settlement Fund shall be distributed as set forth herein.

         1.71 "Proposed CBM I LP Partnership Agreement Amendments" means the
amendments to the Amended and Restated Agreement of Limited Partnership of CBM I
LP, as amended, as requested by the Joint Venture or any of the Defendants in
order to permit, implement or facilitate the CBM I LP Settlement or any of the
transactions constituting a part thereof (including, without limitation, the CBM
I LP Unit Acquisition and the CBM I LP Merger), which amendments shall be
described in the CBM I LP Purchase Offer/Consent Solicitation Statement approved
by the Court as part of the CBM I LP Notice.

         1.72 "Proposed CBM II LP Partnership Agreement Amendments" means the
amendments to the Amended and Restated Agreement of Limited Partnership of CBM
II LP, as amended, as requested by the Joint Venture or any of the Defendants in
order to permit, implement or facilitate the CBM II LP Settlement or any of the
transactions constituting a part thereof (including, without limitation, the CBM
II LP Unit Acquisition and the CBM II LP Merger), which amendments shall be
described in the CBM II LP Purchase/Offer/Consent Solicitation Statement
approved by the Court as part of the CBM II LP Notice.

Settlement Agreement - Page 23
<PAGE>

         1.73 "Released Claims" means all those claims which are released,
settled and discharged as part of this Settlement as described on Exhibits B, C,
D, E, F, and G, attached hereto and incorporated herein by reference.

         1.74 "Released Atlanta Marquis LP Claims" means all those claims which
are released, settled and discharged as part of the Atlanta Marquis LP
Settlement.

         1.75 "Released CBM I LP Claims" means all those claims which are
released, settled and discharged as part of the CBM I LP Settlement, and which
are described on Exhibit B, attached hereto and incorporated herein by
reference.

         1.76 "Released CBM II LP Claims" means all those claims which are
released, settled and discharged as part of the CBM II LP Settlement, and which
are described on Exhibit C, attached hereto and incorporated herein by
reference.

         1.77 "Released Desert Springs LP Claims" means all those claims which
are released, settled and discharged as part of the Desert Springs LP
Settlement, and which are described on Exhibit D,, attached hereto and
incorporated herein by reference.

         1.78 "Released Fairfield Inn LP Claims" means all those claims which
are released, settled and discharged as part of the Fairfield Inn LP Settlement,
and which are described on Exhibit E, attached hereto and incorporated herein by
reference.

         1.79 "Released Persons" means: (i) each and all of the Defendants and
their predecessors, successors, parents, subsidiaries, divisions, affiliates and
related entities; (ii) each of the foregoing persons' or entities' respective
past or present directors, officers, employees, partners, members, principals,
trustees, agents, servants, appraisers, including, but not limited to, Stephen
Rushmore and Hospitality Valuation Services, Inc., underwriters, issuers,
shareholders, insurers, co-insurers, reinsurers, independent contractors,
controlling shareholders, wholesalers,

Settlement Agreement - Page 24
<PAGE>

resellers, distributors, retailers, attorneys, accountants, auditors,
consultants, investment bankers, advisors, personal representatives, affiliates,
predecessors, successors, parents, subsidiaries, divisions, assigns, spouses,
heirs, executors, administrators, associates, and related or affiliated
entities; and (iii) any members of the foregoing persons' immediate families, or
any trust of which any of the foregoing persons is the settlor or which is for
the benefit of any of the foregoing persons and/or member(s) of his or her
family.

         1.80 "Released Residence Inn I LP Claims" means all those claims which
are released, settled and discharged as part of the Residence Inn I LP
Settlement, and which are described on Exhibit F, attached hereto and
incorporated herein by reference.

         1.81 "Released Residence Inn II LP Claims" means all those claims which
are released, settled and discharged as part of the Residence Inn II LP
Settlement, and which are described on Exhibit G, attached hereto and
incorporated herein by reference.

         1.82 "Residence Inn I LP" means the Marriott Residence Inn Limited
Partnership.

         1.83 "Residence Inn I LP Notice" means the Notice of Proposed
Settlement of Class Action and Settlement Hearing to be given to the Residence
Inn I LP Class which will be certified as part of the Residence Inn I LP
Settlement, and to the Palm Intervenors and the Equity Intervenors who own units
in Residence Inn I LP.

         1.84 "Residence Inn I LP Plaintiffs" means all persons named as parties
in the Haas Litigation who own units in and/or a claim concerning the Residence
Inn I LP, other than the Palm Intervenors and the Equity Intervenors, and all
putative members of the Residence Inn I LP Class to be certified in the Haas
Litigation.

         1.85 "Residence Inn I LP Proof of Claim" means the Residence Inn I LP
Proof of Claim and Release.

Settlement Agreement - Page 25
<PAGE>

         1.86 "Residence Inn I LP Settlement" means the satisfaction of all the
Settlement terms and conditions as set forth herein.

         1.87 "Residence Inn I LP Settlement Amount" means the aggregate of
$14,981,728.00, or $228.38 for each of the 65,600 Residence Inn I LP partnership
units that does not opt-out of the Residence Inn I LP Class and executes the
Residence Inn I LP Proof of Claim, the aggregate amount reduced, however, by
$228.38 for each unit below 65,600 which fails to settle as provided herein.

         1.88 "Residence Inn II LP" means the Marriott Residence Inn II Limited
Partnership.

         1.89 "Residence Inn II LP Notice" means the Notice of Proposed
Settlement of Class Action and Settlement Hearing to be given to the Residence
Inn II LP Class which will be certified as part of the Residence Inn II LP
Settlement, and to the Palm Intervenors and the Equity Intervenors who own units
in Residence Inn II LP.

         1.90 "Residence Inn II LP Plaintiffs" means all persons named as
parties in the Haas Litigation who own units in and/or a claim concerning
Residence Inn II LP, other than the Palm Intervenors and the Equity Intervenors,
and all putative members of the Residence Inn II LP Class to be certified in the
Haas Litigation.

         1.91 "Residence Inn II LP Proof of Claim" means the Residence Inn II LP
Proof of Claim and Release.

         1.92 "Residence Inn II LP Settlement" means the satisfaction of all the
Settlement terms and conditions as set forth herein.

         1.93 "Residence Inn II LP Settlement Amount" means the aggregate of
$15,986,600.00, or $228.38 for each of the 70,000 Residence Inn II LP
partnership units that does not opt-out of the Residence Inn II LP Class and
executes the Residence Inn II LP Proof of

Settlement Agreement - Page 26
<PAGE>

Claim, the aggregate amount reduced, however, by $228.38 for each unit below
70,000 which fails to settle as provided herein.

         1.94 "Rockledge" means Rockledge Hotel Properties, Inc., a Delaware
corporation in which Host Marriott owns approximately 95% of the economic
interests and which is the owner, directly or indirectly, of 99% of each of CBM
One LLC, CBM Two LLC, RIBM One LLC, RIBM Two LLC and FIBM One LLC, the general
partners of CBM I LP, CBM II LP, Residence Inn I LP, Residence Inn II LP and
Fairfield Inn LP, respectively, by virtue of their mergers with CBM One
Corporation, CBM Two Corporation, RIBM One Corporation, Marriott RIBM Two
Corporation and Marriott FIBM One Corporation, respectively, and its successors
and assigns. Rockledge has joined in this Settlement Agreement as an additional
party hereto.

         1.95 "Settlement" means the resolution of the Milkes and Haas
Litigations, according to the terms and conditions set forth in this Settlement
Agreement.

         1.96 "Settlement Agreement" means this Settlement Agreement.

         1.97 "Settlement Fund" means the total of the CBM I LP Settlement
Amount , CBM II LP Settlement Amount,, Residence Inn I LP Settlement Amount,
Residence Inn II LP Settlement Amount,, Fairfield Inn LP Settlement Amount, and
Desert Springs LP Settlement Amount, plus any Interest pursuant to Paragraphs
11.2 and 17.1, less $4.25 Million to be taken out of any award of attorneys'
fees to Plaintiffs' Counsel as set forth herein.

         1.98 "Settling Parties" means, collectively, each of the Defendants,
the Plaintiffs, the Palm Intervenors, the Equity Intervenors and the SLC, by and
through their respective counsel of record in the Haas and Milkes Litigations.

         1.99 "SLC" means the Special Litigation Committee appointed by the
General Partners of CBM I LP and CBM II LP.

Settlement Agreement - Page 27
<PAGE>

         1.100 "Sturm Litigation" means the lawsuit styled Civil Action No.
1:97-CV-3706-TWT; Hiram and Ruth Sturm, et al v. Marriott Marquis Corporation,
et al; In the United States District Court for the Northern District of Georgia.

         1.101 "Sturm Plaintiffs" means all persons named as parties in the
Sturm Litigation who formerly owned units in and/or a claim concerning the
Atlanta Marquis LP, other than the Equity Intervenors, and all putative members
of the class to be certified in the Sturm Litigation.

         2.    CBM I LP Settlement
               -------------------

         2.1   As part of the CBM I LP Settlement, and subject to the terms and
conditions contained herein, the Joint Venture will pay or cause to be paid the
CBM I LP Settlement Amount on behalf of and for the benefit of the CBM I LP
Plaintiffs, the Palm Intervenors, the Equity Intervenors and the Insiders (other
than CBM One LLC).

         2.2   As part of the CBM I LP Settlement, and subject to the terms and
conditions contained herein, Plaintiffs' Counsel, with the advice and consent of
Defendants' Counsel, will move for and be granted certification of a settlement
class consisting of all CBM I LP Unit holders, excluding, however, the Equity
Intervenors and the Palm Intervenors (the "CBM I LP Class").

         2.3   As part of the CBM I LP Settlement, and subject to the terms and
conditions contained herein, the CBM I LP Plaintiffs, the Palm Intervenors and
the Equity Intervenors will RELEASE, ACQUIT and FOREVER DISCHARGE the Released
Persons from the Released CBM I LP Claims as of the Effective Date. The Released
CBM I LP Claims are defined in Exhibit B, attached hereto and incorporated
herein by reference.

         2.4   As part of the CBM I LP Settlement, and subject to the terms and
conditions contained herein, the CBM I LP Plaintiffs, the Palm Intervenors, the
Equity Intervenors and the

Settlement Agreement  - Page 28
<PAGE>

Insiders (other than CBM One LLC) will assign, transfer and convey to the Joint
Venture, or to one or more of its designees, all CBM I LP Units, half-units and
other fractional units, together with all right, title and interest held, owned
or claimed in CBM I LP.

         2.5   As part of the CBM I LP Settlement, and subject to the terms and
conditions contained herein, each CBM I LP Plaintiff, Palm Intervenor and Equity
Intervenor will be given an opportunity to vote on those certain Proposed CBM I
LP Partnership Agreement Amendments which will be described in the CBM I LP
Purchase Offer/Consent Solicitation Statement to be sent to each CBM I LP
Plaintiff, Palm Intervenor and Equity Intervenor.

         2.6   As part of the CBM I LP Settlement, and subject to the terms and
conditions contained herein, each CBM I LP Plaintiff, Palm Intervenor and Equity
Intervenor will be given the opportunity to vote on the CBM I LP Merger which
will be described in the CBM I LP Purchase Offer/Consent Solicitation Statement
sent to all CBM I LP Plaintiffs, Palm Intervenors and Equity Intervenors.

         2.7   As part of the CBM I LP Settlement, and subject to the terms and
conditions contained herein, and before payment of any CBM I LP Settlement
Amount is made to any such person, each CBM I LP Plaintiff, Palm Intervenor,
Equity Intervenor and Insider will execute and timely return the CBM I LP Proof
of Claim in the form and manner described therein.

         2.8   Defendants have the unilateral option, at their sole discretion
prior to the entry of the Judgment Order, to terminate the CBM I LP Settlement,
without cost or expense, other than notice costs relating to the CBM I LP
Settlement, if: (1) holders of more than ten percent (10%) of the CBM I LP Units
opt-out of the CBM I LP Settlement; or (2) holders of a majority of the CBM I LP
Units (other than those owned by Insiders) fail to vote in favor of or given
written consent to the CBM I LP Merger or the Proposed CBM I LP Partnership
Agreement

Settlement Agreement - Page 29
<PAGE>

Amendments; or (3) Defendants fail to receive any necessary third party
consents; or (4) any of the terms or conditions of Paragraph 10 are not
satisfied.

         2.9   Subject to the terms and conditions set forth herein (including,
without limitation, the conditions set forth in Paragraphs 10.1 and 10.2
hereof), the CBM I LP Settlement will be effected through a fully-integrated
two-step process approved by the Court as described in this Paragraph 2.9.

         (a)   CBM I LP Unit Acquisition. The first step of the CBM I LP
               -------------------------
Settlement shall be the acquisition by the Joint Venture or one or more of its
designees of the CBM I LP Units held by the CBM I LP Plaintiffs, the Palm
Intervenors, the Equity Intervenors and the Insiders (other than CBM One LLC)
and the release of the Released Persons from the Released CBM I LP Claims by the
CBM I LP Plaintiffs, the Palm Intervenors and the Equity Intervenors (the "CBM I
LP Unit Acquisition"). In the CBM I LP Unit Acquisition, the Joint Venture shall
pay or cause to be paid, at the appropriate time as provided herein, to each CBM
I LP Plaintiff, Palm Intervenor, Equity Intervenor and Insider (other than CBM
One LLC) after receipt by the Claims Administrator of a valid CBM I LP Proof of
Claim as described in Paragraph 1.15 hereof prior to the CBM I LP Unit
Acquisition Closing Date, an amount with respect to each CBM I LP Unit (or
half-CBM I LP Unit or other fractional CBM I LP Unit) so acquired equal to its
pro-rata proportion of the Net Settlement Amount with respect to CBM I LP. To
receive the Net Settlement Amount with respect to CBM I LP, a CBM I LP
Plaintiff, Palm Intervenor, Equity Intervenor or Insider (other than CBM One
LLC), as the case may be, shall have executed and delivered the CBM I LP Proof
of Claim prior to the CBM I LP Unit Acquisition Date, pursuant to which such
person shall have (A) assigned, transferred and conveyed to the Joint Venture or
one or more of its designees all right, title and interest in all CBM I LP
Units, half-CBM I LP

Settlement Agreement - Page 30
<PAGE>

Units and other fractional CBM I LP Units owned by such person, together with
all rights, title and interest held, owned or claimed in CBM I LP, free and
clear of all pledges, security interests, liens and other encumbrances
whatsoever, and (B) released the Released Persons from the Released CBM I LP
Claims. The CBM I LP Unit Acquisition shall be effective as of the Effective
Date, and the CBM I LP Unit Acquisition Closing Date shall be as soon as
practicable following the Effective Date.

               (b) CBM I LP Merger. The second step of the Settlement with
                   ---------------
respect to CBM I LP shall be the merger of a subsidiary of the Joint Venture
with and into CBM I LP, with CBM I LP surviving as the surviving limited
partnership (the "CBM I LP Merger"), pursuant to an agreement and plan of merger
to be entered into among CBM I LP, the Joint Venture and such merger subsidiary
and attached to the CBM I LP Purchase Offer/Consent Solicitation Statement. In
the CBM I LP Merger, (A) the general partner interest held by CBM One LLC and
each CBM I LP Unit held directly or indirectly by the Joint Venture (including,
without limitation, the CBM I LP Units acquired in the CBM I LP Unit
Acquisition) shall remain outstanding and shall be unaffected by the CBM I LP
Merger, (B) the interests in the merger subsidiary shall be converted into CBM I
LP Units, (C) each CBM I LP Unit held by a CBM I LP Plaintiff, Palm Intervenor,
Equity Intervenor, or Insider (other than CBM One LLC) who has not executed and
delivered to the Claims Administrator a CBM I LP Proof of Claim prior to the CBM
I LP Unit Acquisition Closing Date shall be converted into the right to receive
cash in an amount equal to their pro-rata proportion of the Net Settlement
Amount with respect to CBM I LP, and (D) each remaining CBM I LP Unit, being a
CBM I LP Unit held by a Person who has opted-out of the CBM I LP Class and
elected not to participate in the CBM I LP Settlement, shall be converted into
the right to receive cash in an amount equal to the value of such CBM I LP

Settlement Agreement - Page 31
<PAGE>

Unit, determined in the following manner: (I) two independent, nationally
recognized hotel valuation firms approved by the Court and identified in the CBM
I LP Merger Agreement shall appraise the market value of the hotels owned by CBM
I LP as of the Effective Date, which appraisals shall be completed within 60
days after the effective time of the CBM I LP Merger and set forth in a report
certified by a MAI appraiser as having been prepared in accordance with the
requirements of the Standards of Professional Practice of the Appraisal
Institute and the Uniform Standards of Professional Appraisal Practice of the
Appraisal Foundation (which may be based on site visits to 10 or more hotels and
a limited scope review deemed appropriate by such appraisal firm); and (II) the
value of such CBM I LP Unit shall be equal to the amount that would be
distributed with respect to such CBM I LP Unit if the CBM I LP hotels were sold
for an amount equal to the average of the appraised values determined by the two
appraisers, all outstanding indebtedness of CBM I LP and its subsidiaries were
repaid in full in accordance with its terms (including any applicable defeasance
costs and prepayment penalties), all other liabilities of CBM I LP and its
subsidiaries were paid in full (including all amounts due under the CBM I LP
management agreement), and CBM I LP thereafter were liquidated and the
liquidation proceeds were distributed among the CBM I LP partners in accordance
with the terms of the CBM I LP Partnership Agreement. The amount to be received
in the CBM I LP Merger by the holders of the CBM I LP Units who have opted-out
of the CBM I LP Class and elected not to participate in the CBM I LP Settlement
will not include any amount with respect to any claims against the Defendants.
The CBM I LP Merger shall be consummated and be effective on the CBM I LP Unit
Acquisition Closing Date immediately following consummation of the CBM I LP Unit
Acquisition, and thereafter the holders of CBM I LP Units who have not yet
delivered a CBM I LP Proof of Claim and holders of CBM I LP Units who have
opted-out of the

Settlement Agreement - Page 32

<PAGE>

CBM I LP Class and elected not to participate in the CBM I LP Settlement shall
no longer hold any equity interest in CBM I LP.

         2.10  CBM I LP Plaintiffs who elect not to participate ("Opt-Out CBM I
LP Plaintiffs") will be informed in the proposed CBM I LP Notice that in
addition to the payment described in Paragraph 2.9(b)(D), they are free to
pursue individual claims against the Defendants by hiring independent counsel,
which will not include any counsel who have appeared for the CBM I LP Plaintiffs
in the Haas Litigation.

         2.11  Notwithstanding the failure of any CBM I LP Plaintiff, Palm
Intervenors, Equity Intervenors or Insiders to execute and deliver the CBM I LP
Proof of Claim, upon the Judgment Order becoming Final, such CBM I LP
Plaintiffs, Palm Intervenors, Equity Intervenors and Insiders will be deemed to
have: (1) released the Released CBM I LP Claims against the Released Persons;
and (2) assigned, transferred and conveyed to the Joint Venture or one or more
of its designees, all CBM I LP Units, half-units and other fractional units in
CBM I LP.

         3.    CBM II LP Settlement
               --------------------

         3.1   As part of the CBM II LP Settlement, and subject to the terms and
conditions contained herein, the Joint Venture will pay or cause to be paid the
CBM II LP Settlement Amount on behalf of and for the benefit of the CBM II LP
Plaintiffs, the Palm Intervenors, the Equity Intervenors and the Insiders (other
than CBM Two LLC).

         3.2   As part of the CBM II LP Settlement, and subject to the terms and
conditions contained herein, the CBM II LP Plaintiffs, the Palm Intervenors and
Equity Intervenors will RELEASE, ACQUIT and FOREVER DISCHARGE the Released
Persons from the Released CBM II LP Claims as of the Effective Date. The
Released CBM II LP Claims are defined in Exhibit C, attached hereto and
incorporated herein by reference.

Settlement Agreement - Page 33
<PAGE>

         3.3   As part of the CBM II LP Settlement, and subject to the terms and
conditions contained herein, the CBM II LP Plaintiffs, the Palm Intervenors, the
Equity Intervenors and the Insiders (other than CBM Two LLC) will assign,
transfer and convey to the Joint Venture or to one or more of its designees, all
CBM II LP Partnership Units, half-units and other fractional units, together
with all rights, title and interest held, owned or claimed in CBM II LP.

         3.4   As part of the CBM II LP Settlement, and subject to the terms and
conditions contained herein, each CBM II LP Plaintiff, Palm Intervenor and
Equity Intervenor will be given an opportunity to vote on those certain Proposed
CBM II LP Partnership Agreement Amendments which will be described in the CBM II
LP Purchase Offer/Consent Solicitation Statement to be sent to each CBM II LP
Plaintiff, Palm Intervenor and Equity Intervenor.

         3.5   As part of the CBM II LP Settlement, and subject to the terms and
conditions contained herein, each CBM II LP Plaintiff, Palm Intervenor and
Equity Intervenor will be given an opportunity to vote on the CBM II LP Merger
which will be described in the CBM II LP Purchase/Offer Consent Solicitation
Statement sent to all CBM II LP Plaintiffs, Palm Intervenors and Equity
Intervenors.

         3.6   As part of the CBM II LP Settlement, and subject to the terms and
conditions contained herein, and before payment of any CBM II LP Settlement
Amount is made to any such person, each CBM II LP Plaintiff, Palm Intervenor,
Equity Intervenor and Insider will execute and timely return the CBM II LP Proof
of Claim in the form and manner described therein.

         3.7   Defendants have the unilateral option, at their sole discretion
prior to the entry of the Judgment Order, to terminate the CBM II LP Settlement,
without cost or expense, other than notice costs relating to the CBM II LP
Settlement, if: (1) holders of more than ten percent (10%) of the CBM II LP
Units opt-out of the CBM II LP Settlement; or (2) holders of a majority of the

Settlement Page - 34
<PAGE>

CBM II LP Units (other than those owned by Insiders) fail to vote in favor of or
give written consent to the CBM II LP Merger or the Proposed CBM II LP
Partnership Agreement Amendments; or (3) Defendants fail to receive any
necessary third party consents; or (4) the terms and conditions of Paragraph 10
are not satisfied.

         3.8 Subject to the terms and conditions set forth herein (including,
without limitation, the conditions set forth in Paragraphs 10.1 and 10.2
hereof), the CBM II LP Settlement will be effected through a fully-integrated
two-step process approved by the Court as described in this Paragraph 3.8.

         (a)   CBM II LP Unit Acquisition. The first step of the CBM II LP
               --------------------------
Settlement shall be the acquisition by the Joint Venture or one or more of its
designees of the CBM II LP Units held by the CBM II LP Plaintiffs, the Palm
Intervenors, the Equity Intervenors and Insiders (other than CBM Two LLC) and
the release of the Released Persons from the Released CBM II LP Claims by the
CBM II LP Plaintiffs, the Palm Intervenors, the Equity Intervenors and the
Insiders (the "CBM II LP Unit Acquisition"). In the CBM II LP Unit Acquisition,
the Joint Venture shall pay or cause to be paid, at the appropriate time as
provided herein, to each CBM II LP Plaintiff, Palm Intervenors, Equity
Intervenors and Insiders (other than CBM Two LLC) after receipt by the Claims
Administrator of a valid CBM II LP Proof of Claim as described in Paragraph 1.76
hereof, prior to the CBM II LP Unit Acquisition Closing Date, an amount with
respect to each CBM II LP Unit (or half-CBM II LP Unit or other fractional CBM
II LP Unit) so acquired equal to their pro-rata proportion of the Net Settlement
Amount with respect to CBM II LP. To receive the Net Settlement Amount with
respect to CBM II LP, a CBM II LP Plaintiff, Palm Intervenor, Equity Intervenor
and Insider (other than CBM Two LLC), as the case may be, shall have executed
and delivered the CBM II LP Proof of Claim, prior to the CBM II LP Unit

Settlement Agreement - Page 35
<PAGE>

Acquisition Closing Date, pursuant to which such person shall have (A) assigned,
transferred and conveyed to the Joint Venture or one or more of its designees
all rights, title and interest in all CBM II LP Units, half-CBM II LP Units and
other fractional CBM II LP Units owned by such person, together with all rights,
title and interest held, owned or claimed in CBM II LP, free and clear of all
pledges, security interests, liens and other encumbrances whatsoever, and (B)
released the Released Persons from the Released CBM II LP Claims. The CBM II LP
Unit Acquisition shall be effective as of the Effective Date and shall be
consummated as soon as practicable following the Effective Date.

         (b)   CBM II LP Merger. The second step of the Settlement with respect
               ----------------
to CBM II LP shall be the merger of a subsidiary of the Joint Venture with and
into CBM II LP, with CBM II LP surviving as the surviving limited partnership
(the "CBM II LP Merger"), pursuant to an agreement and plan of merger to be
entered into among CBM II LP, the Joint Venture and such merger subsidiary and
attached to the CBM II LP Purchase Offer/Consent Solicitation Statement. In the
CBM II LP Merger, (A) the general partner interest held by CBM One LLC and each
CBM II LP Unit held directly or indirectly by the Joint Venture (including,
without limitation, the CBM II LP Units acquired in the CBM II LP Unit
Acquisition) shall remain outstanding and shall be unaffected by the CBM II LP
Merger, (B) the interests in the merger subsidiary shall be converted into CBM
II LP Units, (C) each CBM II LP Unit held by a CBM II LP Plaintiff, a Palm
Intervenor, an Equity Intervenor or Insider (other than CBM Two LLC) who has not
executed and delivered to the Claims Administrator a CBM II LP Proof of Claim
prior to the CBM II LP Unit Acquisition Closing Date shall be converted into the
right to receive cash in an amount equal to their pro-rata proportion of the Net
Settlement Amount with respect to CBM II LP, and (D) each remaining CBM II LP
Unit, being a CBM II LP Unit held by a Person who has

Settlement Agreement - Page 36
<PAGE>

opted-out of the CBM II LP Class and elected not to participate in the CBM II LP
Settlement, shall be converted into the right to receive cash in an amount equal
to the value of such CBM II LP Unit, determined in the following manner: (I) two
independent, nationally recognized hotel valuation firms approved by the Court
and identified in the CBM II LP merger agreement shall appraise the market value
of the hotels owned by CBM II LP as of the Effective Date, which appraisals
shall be completed within 60 days after the effective time of the CBM II LP
Merger and set forth in a report certified by a MAI appraiser as having been
prepared in accordance with the requirements of the Standards of Professional
Practice of the Appraisal Institute and the Uniform Standards of Professional
Appraisal Practice of the Appraisal Foundation (which may be based on site
visits to 10 or more hotels and a limited scope review deemed appropriate by
such appraisal firm); and (II) the value of such CBM II LP Unit shall be equal
to the amount that would be distributed with respect to such CBM II LP Unit if
the CBM II LP hotels were sold for an amount equal to the average of the
appraised values determined by the two appraisers, all outstanding indebtedness
of CBM II LP and its subsidiaries were repaid in full in accordance with its
terms (including any applicable defeasance costs and prepayment penalties), all
other liabilities of CBM II LP and its subsidiaries were paid in full (including
all amounts due under the CBM II LP Management Agreement), and CBM II LP
thereafter were liquidated and the liquidation proceeds were distributed among
the CBM II LP partners in accordance with the terms of the CBM II LP Partnership
Agreement. The amount to be received in the CBM II LP Merger by the holders of
the CBM II LP Units who have opted-out of the CBM II LP Class and elected not to
participate in the CBM II LP Settlement will not include any amount with respect
to any claims against the Defendants. The CBM II LP Merger shall be consummated
and be effective on the CBM II LP Unit Acquisition Closing Date immediately
following consummation

Settlement Agreement - Page 37
<PAGE>

of the CBM II LP Unit Acquisition and thereafter the holders of CBM II LP Units
who have not yet delivered a CBM II LP Proof of Claim and holders of CBM II LP
Units who have opted-out of the CBM II LP Class and elected not to participate
in the CBM II LP Settlement shall no longer hold any equity interest in CBM II
LP.

         3.9   CBM II LP Plaintiffs who elect not to participate ("Opt-Out CBM
II LP Plaintiffs") will be informed in the CBM II LP Notice that in addition to
the payment described in Paragraph 3.8(b)(D), they are free to pursue individual
claims against the Defendants by hiring independent counsel, which will not
include any counsel who have appeared for the CBM II LP Plaintiffs in the Milkes
Litigation.

         3.10  Notwithstanding any CBM II LP Plaintiff, Palm Intervenors, Equity
Intervenors or Insiders failure to execute and deliver the CBM II LP Proof of
Claim, upon the Judgment Order becoming Final, such CBM II LP Plaintiffs, Palm
Intervenors, Equity Intervenors and Insiders will be deemed to have: (1)
released the Released CBM II LP Claims against the Released Persons; and (2)
assigned, transferred and conveyed to the Joint Venture or one or more of its
designees, all CBM II LP Partnership Units, half-units and other fractional
units in CBM II LP.

         4.    The Residence Inn I LP Settlement
               ---------------------------------

         4.1   As part of the Residence Inn I LP Settlement, and subject to the
terms and conditions contained herein, Plaintiffs' Counsel, with the advice and
consent of Defendants' Counsel, will move for and be granted certification of a
settlement class consisting of all Residence Inn I LP unit holders, excluding,
however, the Equity Intervenors who own units in Residence Inn I LP (the
"Residence Inn I LP Class").

Settlement Agreement - Page 38
<PAGE>

         4.2   As part of the Residence Inn I LP Settlement, and subject to the
terms and conditions contained herein, Rockledge and Marriott International or
its designee, will pay or cause to be paid the Residence Inn I LP Settlement
Amount.

         4.3   As part of the Residence Inn I LP Settlement, and subject to the
terms and conditions contained herein, the Residence Inn I LP Plaintiffs, the
Palm Intervenors and the Equity Intervenors will RELEASE, ACQUIT and FOREVER
DISCHARGE the Released Persons from the Residence Inn I LP Released Claims as of
the Effective Date. The Residence Inn I LP Released Claims are described on
Exhibit F attached hereto and incorporated herein by reference.

         4.4   As part of the Residence Inn I LP Settlement, and subject to the
terms and conditions contained herein, and before payment of any Residence Inn I
LP Settlement Amount is made to any such person, each Residence Inn I LP
Plaintiff and Equity Intervenor will execute and timely return the Residence Inn
I LP Proof of Claim in the form and manner described therein.

         4.5   As part of the Residence Inn I LP Settlement, and subject to the
terms and conditions contained herein, Defendants will waive the right to
receive payment in the future of $29,781,000.00 in deferred management fees
presently owed to the manager pursuant to the terms of the Residence Inn I LP
Management Agreement.

         4.6   Defendants have the unilateral option, at their sole discretion
prior to entry of the Judgment Order, to terminate the Residence Inn I LP
Settlement, without cost or expense, other than notice costs relating to the
Residence Inn I LP Settlement, if holders of more than ten percent (10%) of the
65,600 units outstanding in Residence Inn I LP opt-out of the Residence Inn I LP
Settlement. If the Residence Inn I LP Settlement proceeds with fewer than one
hundred

Settlement Agreement - Page 39
<PAGE>

percent (100%) of the 65,600 units participating, the amount of the Residence
Inn I LP Settlement Amount shall be reduced by $228.38 for every such
non-participating unit.

         4.7   Residence Inn I LP Plaintiffs who elect not to participate
("Opt-Out Residence Inn I Plaintiffs") will be informed in the proposed
Residence Inn I LP Notice that they will receive no settlement payment but are
free to pursue individual claims against the Defendants by hiring independent
counsel, which will not include any counsel who have appeared for the Residence
Inn I LP Plaintiffs in the Haas Litigation.

         4.8   The Residence Inn I LP Settlement is also subject to Paragraph 10
hereof.

         4.9   Notwithstanding the failure of any Residence Inn I LP Plaintiff,
Palm Intervenors or Equity Intervenors to execute and deliver the Residence Inn
I LP Proof of Claim, upon the Judgment Order becoming Final, such Residence Inn
I LP Plaintiffs, Palm Intervenors and Equity Intervenors will be deemed to have
released the Released Residence Inn I LP Claims against the Released Persons.

         5.    The Residence Inn II LP Settlement
               ----------------------------------

         5.1   As part of the Residence Inn II LP Settlement, and subject to the
terms and conditions contained herein, Plaintiffs' Counsel, with the advice and
consent of Defendants' Counsel, will move for and be granted certification of a
settlement class consisting of all Residence Inn II LP unit holders, excluding,
however, the Equity Intervenors who own units in Residence Inn II LP (the
"Residence Inn II LP Class").

         5.2   As part of the Residence Inn II LP Settlement, and subject to the
terms and conditions contained herein, Rockledge and Marriott International or
its designee, will pay or cause to be paid the Residence Inn I LP Settlement
Amount.

         5.3   As part of the Residence Inn II LP Settlement, and subject to the
terms and

Settlement Agreement - Page 40
<PAGE>

conditions contained herein, the Residence Inn II LP Plaintiffs, the
Palm Intervenors and the Equity Intervenors will RELEASE, ACQUIT and FOREVER
DISCHARGE the Released Persons from the Residence Inn II LP Released Claims as
of the Effective Date. The Residence Inn II LP Released Claims are described on
Exhibit G attached hereto and incorporated herein by reference.

         5.4   As part of the Residence Inn II LP Settlement, and subject to the
terms and conditions contained herein, and before payment of any Residence Inn
II LP Settlement Amount is made to any such person, each Residence Inn II LP
Plaintiff and Equity Intervenor will execute and return the Residence Inn II LP
Proof of Claim in the form and manner described therein.

         5.5   As part of the Residence Inn II LP Settlement, and subject to the
terms and conditions contained herein, Defendants will waive the right to
receive payment in the future of $22,693,000.00 in deferred management fees
presently owed to the manager pursuant to the terms of the Residence Inn II LP
Management Agreement.

         5.6   Defendants have the unilateral option, at their sole discretion
prior to the entry of the Judgment Order, to terminate the Residence Inn II LP
Settlement, without cost or expense, other than notice costs relating to the
Residence Inn II LP Settlement, if holders of more than ten percent (10%) of the
70,000 units outstanding in Residence Inn II LP opt-out of the Residence Inn II
LP Settlement. If the Residence Inn II LP Settlement proceeds with fewer than
one hundred percent (100%) of the 70,000 units participating, the amount of the
Residence Inn II LP Settlement Amount shall be reduced by $228.38 for every such
non-participating unit.

         5.7   Residence Inn II LP Plaintiffs who elect not to participate
("Opt-Out Residence Inn II Plaintiffs") will be informed in the proposed
Residence Inn II LP Notice that they will

Settlement Agreement - Page 41
<PAGE>

receive no settlement payment but are free to pursue individual claims against
the Defendants by hiring independent counsel, which will not include any counsel
who have appeared for Residence Inn II LP Plaintiffs in the Haas Litigation.

         5.8   The Residence Inn II LP Settlement is also subject to Paragraph
10 herein.

         5.9   Notwithstanding the failure of any Residence Inn II LP Plaintiff,
Palm Intervenors or Equity Intervenors to execute and deliver the Residence Inn
II LP Proof of Claim, upon the Judgment Order becoming Final, such Residence Inn
II LP Plaintiffs, Palm Intervenors and Equity Intervenors will be deemed to have
released the Released Residence Inn II LP Claims against the Released Persons.

         6.    The Fairfield Inn LP Settlement
               -------------------------------

         6.1   As part of the Fairfield Inn LP Settlement, and subject to the
terms and conditions contained herein, Plaintiffs' Counsel, with the advice and
consent of Defendants' Counsel, will move for and be granted certification of a
settlement class consisting of all Fairfield Inn LP unit holders, excluding,
however, the Equity Intervenors who own units in Fairfield Inn LP (the
"Fairfield Inn LP Class").

         6.2   As part of the Fairfield Inn LP Settlement, and subject to the
terms and conditions contained herein, Rockledge and Marriott International or
its designee, will pay or cause to be paid the Fairfield Inn LP Settlement
Amount.

         6.3   As part of the Fairfield Inn LP Settlement, and subject to the
terms and conditions contained herein, the Fairfield Inn LP Plaintiffs, the Palm
Intervenors and Equity Intervenors will RELEASE, ACQUIT and FOREVER DISCHARGE
the Released Persons from the Fairfield Inn LP Released Claims as of the
Effective Date. The Fairfield Inn LP Released Claims are described on Exhibit E
attached hereto and incorporated herein by reference.

Settlement Agreement - Page 42
<PAGE>

         6.4   As part of the Fairfield Inn LP Settlement, and subject to the
terms and conditions contained herein, and before payment of any Fairfield Inn
LP Settlement Amount is made to any such person, each Fairfield Inn LP Plaintiff
and Equity Intervenor will execute and return the Fairfield Inn LP Proof of
Claim in the form and manner described therein.

         6.5   As part of the Fairfield Inn LP Settlement, and subject to the
terms and conditions contained herein, Defendants will waive the right to
receive payment in the future of $23,483,000.00 in deferred management fees
presently owed to the manager pursuant to the terms of the Fairfield Inn LP
Management Agreement.

         6.6   Defendants have the unilateral option, at their sole discretion
prior to entry of the Judgment Order, to terminate the Fairfield Inn LP
Settlement, without cost or expense, other than notice costs relating to the
Fairfield Inn LP Settlement, if holders of more than ten percent (10%) of the
83,337 units outstanding in Fairfield Inn LP opt-out of the Fairfield Inn LP
Settlement. If the Fairfield Inn LP Settlement proceeds with fewer than one
hundred percent (100%) of the 83,337 units participating, the amount of the
Fairfield Inn LP Settlement Amount shall be reduced by $228.38 for every such
non-participating unit.

         6.7   Fairfield Inn LP Plaintiffs who elect not to participate ("Opt-
Out Fairfield Inn LP Plaintiffs") will be informed in the proposed Fairfield Inn
LP Notice that they will receive no settlement payment but are free to pursue
individual claims against the Defendants by hiring independent counsel, which
will not include any counsel who have appeared for the Fairfield Inn LP
Plaintiffs in the Haas Litigation.

         6.8   The Fairfield Inn LP Settlement is subject to Paragraph 10
herein.

         6.9   Notwithstanding the failure of any Fairfield Inn LP Plaintiff,
Palm Intervenors or Equity Intervenors to execute and deliver the Fairfield Inn
LP Proof of Claim, upon the

Settlement Agreement - Page 43
<PAGE>

Judgment Order becoming Final, such Fairfield Inn LP Plaintiffs, Palm
Intervenors and Equity Intervenors will be deemed to have released the Released
Fairfield Inn LP Claims against the Released Persons.

         7.    The Desert Springs LP Settlement
               --------------------------------

         7.1   As part of the Desert Springs LP Settlement, and subject to the
terms and conditions contained herein, Plaintiffs' Counsel, with the advice and
consent of Defendants' Counsel, will move for and be granted certification of a
settlement class consisting of all former Desert Springs LP unit holders in two
sub-classes: (1) the former holders of the 206 units in Desert Springs LP who
have individually appeared in the Haas Litigation; and (2) all other former
Desert Springs LP Unit holders, excluding the Equity Intervenors who formerly
owned units in Desert Springs LP (collectively the "Desert Springs LP Class").

         7.2   As part of the Desert Springs LP Settlement, and subject to the
terms and conditions contained herein, Host Marriott and Marriott International
or its designee will pay or cause to be paid the Desert Springs LP Settlement
Amount.

         7.3   As part of the Desert Springs LP Settlement, and subject to the
terms and conditions contained herein, the Desert Springs LP Plaintiffs, the
Palm Intervenors and the Equity Intervenors will RELEASE, ACQUIT and FOREVER
DISCHARGE the Released Persons from the Desert Springs LP Released Claims as of
the Effective Date. The Desert Springs LP Released Claims are described on
Exhibit D attached hereto and incorporated herein by reference.

         7.4   As part of the Desert Springs LP Settlement, and subject to the
terms and conditions contained herein, and before payment of any Desert Springs
LP Settlement Amount is made to any such person, each Desert Springs LP
Plaintiff and Equity Intervenor will execute

Settlement Agreement - Page 44
<PAGE>

and return the Desert Spring LP Proof of Claim in the form and manner described
therein.

         7.5   Defendants have the unilateral option, at their sole discretion
prior to entry of the Judgment Order, to terminate the Desert Springs LP
Settlement, without cost or expense, other than notice costs relating to the
Desert Springs LP Settlement, if the holders of more than ten percent (10%) of
the 900 former units outstanding in Desert Springs LP opt-out of the Desert
Springs LP Settlement. If the Desert Springs LP Settlement proceeds with fewer
than one hundred percent (100%) of the holders of the 900 former units
participating, the amount of the Desert Springs LP Settlement Amount shall be
reduced by the amount set forth in Paragraph 1.41 for every such
non-participating unit.

         7.6   Desert Springs LP Plaintiffs who elect not to participate in the
Desert Springs LP Class ("Opt-Out Desert Springs LP Plaintiffs") will be
informed in the proposed Desert Springs LP Notice that they will receive no
settlement payment but are free to pursue individual claims against the
Defendants by hiring independent counsel, which will not include any counsel who
have appeared for the Desert Springs LP Plaintiffs in the Haas Litigation.

         7.7   The Desert Springs LP Settlement is subject to Paragraph 10
herein.

         7.8   Notwithstanding the failure of any Desert Springs LP Plaintiff,
Palm Intervenors or Equity Intervenors to execute and deliver the Desert Springs
LP Proof of Claim, upon the Judgment Order becoming Final, such Desert Springs
LP Plaintiffs, Palm Intervenors and Equity Intervenors will be deemed to have
released the Released Desert Springs LP Claims against the Released Persons.

Settlement Agreement - Page 45
<PAGE>

         8.    The Atlanta Marquis LP Settlement
               ---------------------------------

         8.1   As part of this Settlement, Plaintiffs' Counsel and Equity's
Counsel will dismiss without prejudice any and all claims in the Haas Litigation
relating to Atlanta Marquis LP and inform the Atlanta Marquis Plaintiffs that
(i) they are dismissing all claims relating to Atlanta Marquis LP; and (ii) they
will be class members in the Sturm Litigation with respect to the Atlanta
Marquis LP Settlement.

         8.2   As part of the Atlanta Marquis LP Settlement, Atlanta Marquis
LP's Counsel, with the advice and consent of Defendants' Counsel, will move for
and be granted certification of a settlement class consisting of all parties in
the Sturm Litigation who formerly owned units in Atlanta Marquis LP and all
other former Atlanta Marquis LP unit holders (the "Atlanta Marquis LP Class"),
excluding, however, Equity Intervenors who owned units in Atlanta Marquis LP.

         8.3   As part of the Atlanta Marquis LP Settlement, Host Marriott and
Marriott International or its designee, will pay or cause to be paid the Atlanta
Marquis LP Settlement Amount.

         8.4   As part of the Atlanta Marquis LP Settlement, the Sturm
Plaintiffs will RELEASE, ACQUIT and FOREVER DISCHARGE the Released Persons.

         8.5   As part of the Atlanta Marquis LP Settlement, and before payment
of any Atlanta Marquis LP Settlement Amount is made to any such person, each
Sturm Plaintiff will execute and return the Atlanta Marquis LP Proof of Claim in
the form and manner described therein.

         8.6   Defendants have the unilateral option, at their sole discretion
prior to entry of the Judgment Order to terminate the Atlanta Marquis LP
Settlement, without cost or expense, other than notice costs relating to the
Atlanta Marquis LP Settlement, if holders of more than ten

Settlement Agreement - Page 46
<PAGE>

percent (10%) of the former 530 unit holders in Atlanta Marquis LP opt-out of
the Atlanta Marquis LP Settlement. If the Atlanta Marquis LP Settlement proceeds
with fewer than one hundred percent (100%) of the 530 units participating, the
amount of the Atlanta Marquis LP Settlement Amount shall be reduced by $8,018.86
for every such non-participating unit.

         8.7   Sturm Plaintiffs who elect not to participate ("Opt-Out Atlanta
Marquis LP Plaintiffs") will be informed in the Atlanta Marquis LP Notice that
they will receive no settlement payment but are free to pursue individual claims
against the Defendants by hiring independent counsel, which will not include any
counsel who have appeared for the Atlanta Marquis LP Plaintiffs or the Sturm
Plaintiffs.

         9.    The SLC
               -------

         9.1   The SLC agrees that the terms of the CBM II LP Settlement
(including, without limitation, the terms and conditions of the CBM II LP Unit
Acquisition and the CBM II LP Merger) are fair and reasonable and include a fair
and reasonable settlement of any and all derivative claims, expressed or
implied, made on behalf of CBM II LP in the Milkes Litigation. If holders of ten
percent (10%) or less of the CBM II LP Units opt-out of the CBM II LP
Settlement, or, at Defendants' sole option, if holders of more than ten percent
(10%) opt-out and Defendants waive, in writing, the condition set forth in
Paragraph 10.2(a) as to CBM II LP, the SLC agrees to release, on behalf of CBM
II LP and in favor of all Defendants, any and all such derivative claims.

         9.2   The CBM II LP Notice shall state that if holders of ten percent
(10%) or less of the CBM II LP Units opt-out of the CBM II LP Settlement, or, at
Defendants' sole option, if holders of more than ten percent (10%) of the CBM II
LP Units opt-out and Defendants waive, in writing, the condition set forth in
Paragraph 10.2(a) as to CBM II LP, the SLC agrees to

Settlement Agreement - Page 47
<PAGE>

release upon the Effective Date, on behalf of CBM II LP and in favor of all
Defendants, any and all such derivative claims.

         9.3   Based on the information received by the SLC to date, the terms
of the CBM I LP Settlement (including, without limitation, the terms and
conditions of the CBM I LP Unit Acquisition and the CBM I LP Merger) appear to
the SLC to be fair and reasonable and to include a fair and reasonable
settlement of any and all derivative claims, expressed or implied, made on
behalf of CBM I LP in the Haas Litigation. It further appears to the SLC to be
fair and reasonable to release, and subject to the SLC's due diligence review,
the SLC shall release, on behalf of CBM I LP, in favor of all Defendants, any
such derivative claims if ten percent (10%) or less of the CBM I LP Units
opt-out of the CBM I LP Settlement, or, at Defendants' sole option, if more than
ten percent (10%) opt-out and Defendants waive, in writing, the condition set
forth in Paragraph 10.2(a) as to CBM I LP.

         9.4   Subject to the SLC's due diligence review, which shall be
concluded before the CBM I LP Notice is provided to the Court, the CBM I LP
Notice shall state that if holders of ten percent (10%) or less of the CBM I LP
Units opt-out of the CBM I LP Settlement, or, at Defendants' sole option, if
holders of more than ten percent (10%) of the CBM I LP Units opt-out and
Defendants waive, in writing, the condition set forth in Paragraph10.2(a) as to
CBM I LP, the SLC agrees to release upon the Effective Date, on behalf of CBM I
LP and in favor of all Defendants, any and all such derivative claims.

         9.5   The fees and expenses of the SLC, the SLC's Counsel and any
experts retained by the SLC shall be paid by the Defendants or their designees.

10.      Conditions to the Effectiveness of the Settlement
         -------------------------------------------------

         10.1  Conditions Prior to Notice. Defendants' obligation to proceed
               --------------------------
with this

Settlement Agreement - Page 48
<PAGE>

Settlement Agreement and consummate the transactions contemplated in connection
therewith is subject to the condition precedent that any and all necessary
consents from third parties shall have been obtained and remain in full force
and effect; provided that Host Marriott, Rockledge and Marriott International
shall have the right, in their sole and absolute discretion, to waive any such
condition, in writing, as to any or all of such consents, which may include the
following:

         (a)   If required, the lenders under the Amended and Restated Credit
Agreement dated as of August 5, 1998 (as amended to the date hereof) under which
Host Marriott is the borrower;

               (b)   If required, the lender under the Loan Agreement dated as
                     of March 21, 1997 (as amended to the date hereof), under
                     which CBM I LP is the borrower (and any Rating Comfort
                     Letter (as defined therein) required in connection with the
                     Settlement shall have obtained);

               (c)   If required, the holders of a majority of the outstanding
                     principal amount of Senior Secured Notes due 2008 issued by
                     CBM II LP;

               (d)   If required, any ground lessor (other than Marriott
                     International or any affiliate thereof) with respect to any
                     hotel owned by either of CBM I LP or Courtyard II
                     Associates; and

               (e)   If required, Hospitality Properties Trust (or its
                     successors or assigns) shall have waived its right to
                     purchase any partnership interest in CBM I LP or CBM II LP
                     pursuant to that certain Purchase-Sale and Option Agreement
                     by and among HMH Courtyard Properties, Inc., HMH
                     Properties, Inc., and Hospitality Properties, Inc., dated
                     as of February 3, 1995, as amended to the date hereof.

               (f)   If required, permission by the Securities and Exchange
                     Commission ("SEC") to mail the definitive Purchase
                     Offer/Consent Solicitation Statement to the holders of CBM
                     I LP Units and CBM II LP Units or the SEC staff shall have
                     decided not to review the Purchase Offer/Consent
                     Solicitation Statements.

         Following execution of this Settlement Agreement, Defendants will use
reasonable

Settlement Agreement - Page 49
<PAGE>

efforts to obtain such consents/permission within sixty (60) days, and notify
Plaintiffs' Counsel, Equity's Counsel and Palm's Counsel in writing when such
consents have been obtained. If Defendants determine in their sole discretion
that such consents/permission cannot be obtained, unless Defendants elect in
their sole discretion to waive the requirement of obtaining such
consent/permission in writing, Defendants shall notify Plaintiffs' Counsel,
Palm's Counsel and Equity's Counsel in writing, at which time this Settlement
Agreement and the Settlement shall be null and void and without cost or expense
(including Interest expense) to any party, and without further action, the
Defendants, the Joint Venture and Rockledge shall be relieved of any obligations
under this Settlement Agreement. If Defendants Counsel has not, within 120 days
of the execution of this Settlement Agreement, notified Plaintiffs' Counsel,
Palm's Counsel and Equity's Counsel that (i) such consents/permission have been
obtained; (ii) such consents/permission have been waived; or (iii) such
consents/permission cannot be obtained, then Plaintiffs' Counsel has the option
to notify Defendants' Counsel in writing that the Settlement shall be null and
void without cost or expense (including Interest expense) to any party, and
Palm's Counsel and/or Equity's Counsel has the option to notify Defendants'
Counsel in writing that the Palm Intervenors and/or the Equity Intervenors (as
the case may be) withdraw from the Settlement without cost or expense (including
Interest expense) to any party; provided that such notice from Plaintiffs'
Counsel, Palm's Counsel and/or Equity's Counsel is sent prior to notice being
sent by Defendants' Counsel that the consents/permission have been obtained or
waived.

         10.2  Conditions Following Notice. Assuming all conditions in Paragraph
               ---------------------------
10.1 have been satisfied or waived, and following the approval by the Court of
certification of the CBM I

Settlement Agreement - Page 50
<PAGE>

LP Class, the Residence Inn I LP Class, the Residence Inn II LP Class, the
Fairfield Inn LP Class, and the Desert Springs LP Class, and the sending to the
Plaintiffs of the appropriate Notices, Defendants shall be obligated to proceed
with this Settlement only if each of the following events shall have occurred
and remain in effect within the time set for all Plaintiffs, the Palm
Intervenors and Equity Intervenors to return the Consent Forms and/or Proof of
Claims or opt-out of the Settlements:

               (a)   Holders of ten percent (10%) or less of the units held by
                     limited partners (other than Insiders) in CBM I LP, CBM II
                     LP, Residence Inn I LP, Residence Inn II LP, Desert Springs
                     LP and Atlanta Marquis LP shall have elected not to
                     participate in ("opted-out" of) the Settlement;

               (b)   Limited partners holding a majority of the CBM I LP Units
                     (excluding CBM I LP Units held by Insiders) shall have
                     submitted valid written CBM I LP Consent Forms voting in
                     favor of the CBM I LP Merger and the Proposed CBM I LP
                     Partnership Agreement Amendments; and

               (c)   Limited partners holding a majority of the CBM II LP Units
                     (excluding the CBM II LP Units held by Insiders) shall have
                     submitted valid written CBM II LP Consent Forms voting in
                     favor of the CBM II LP Merger and the Proposed CBM II LP
                     Partnership Agreement Amendments.

         If any of the above conditions are not satisfied, unless Host Marriott,
Rockledge and Marriott International elect, in writing, in their sole and
absolute discretion, to waive any such condition and proceed with all, or any
one or more, or any combination of the CBM I LP Settlement, CBM II LP
Settlement, Residence Inn I LP Settlement, Residence Inn II LP Settlement,
Desert Springs LP Settlement and Atlanta Marquis LP Settlement, solely at the
option of Host Marriott, Rockledge and Marriott International, set forth in
writing, this Settlement Agreement and the Settlement as to all or any such
Partnerships shall be null and void and without cost or expense to any party
(including Interest expense) (and except for the Notice

Settlement Agreement - Page 51
<PAGE>

costs, as set forth elsewhere herein), and without further action, the
Defendants, the Joint Venture and Rockledge shall be relieved of any obligations
under this Settlement Agreement.

         10.3  Plaintiffs' Counsel has substantially completed its due diligence
regarding the Settlement subject to receipt within fourteen (14) days of the
remaining documents previously requested from Defendants.

         11.   Payment of the Settlement Fund
               ------------------------------

         11.1  On or before the third business day following the entry by the
Court of the executed Judgment Order, the Joint Venture, Rockledge, Host
Marriott and Marriott International, or one or more of their designees, shall
pay or cause to be paid by wire transfer the Settlement Fund to the Escrow
Agent, which will be deposited by the Escrow Agent in an interest-bearing
account pursuant to the Escrow Agreement in substantially the form attached as
Exhibit H. In the event that the Judgment Order does not become Final because an
appeal or other review of the Judgment Order has been filed, the Escrow Agent
will return the Settlement Fund, with interest, to the Joint Venture, Rockledge,
Host Marriott and Marriott International, in amounts as jointly instructed by
these four entities, by wire transfer, within two (2) business days after the
date the Escrow Agent receives documentation of such event. The Joint Venture,
Rockledge, Host Marriott and Marriott International or one or more of their
designees, will pay or cause to be paid by wire transfer the Settlement Fund
back to the Escrow Agent within three (3) business days after the order or
judgment by the appellate court affirming the Judgment Order becomes Final.

         11.2  In the event that the Settlement Fund is returned to the Joint
Venture, Rockledge,

Settlement Agreement - Page 52
<PAGE>

Host Marriott Corporation and Marriott International pursuant to Paragraph 11.1
above, the Defendants agree to accrue Interest on the Fairfield Inn LP
Settlement Amount, Residence Inn I LP Settlement Amount, Residence Inn II LP
Settlement Amount and Desert Springs LP Settlement Amount until such time as the
Settlement Fund, with such accrued Interest (including Interest earned on that
portion of the Settlement Fund relating to such Settlement Amounts pursuant to
Paragraph 11.1 above), is paid back to the Escrow Agent pursuant to Paragraph
11.1 above.

         11.3  The Escrow Agent shall not be authorized to distribute any amount
from the Settlement Fund to any Plaintiff, Palm Intervenor, Equity Intervenor,
Insider, or Plaintiffs' Counsel until after the Effective Date, and in
accordance with the Plan of Allocation and the Court's order with respect to the
payment of Plaintiffs' Counsel's Attorneys' Fees and reimbursement of expenses.

         11.4  The Escrow Agent will not distribute any amount from the
Settlement Fund to any Plaintiff, Palm Intervenor, Equity Intervenor or Insider
unless and until a fully executed Proof of Claim is received by the Claims
Administrator and provided to Defendants' Counsel and Plaintiffs' Counsel.

         11.5  If the Settlement does not become effective, all such Interest
shall inure to the benefit of the Joint Venture, Rockledge, Host Marriott and
Marriott International and shall be returned to the Joint Venture, Rockledge,
Host Marriott and Marriott International in such proportions as they shall agree
among themselves and in accordance with the provisions of Paragraph 11.1, less
any amounts necessary to pay the fees and expenses of the Escrow Agent and the
Claims Administrator.

         11.6  The Escrow Agent shall not use or disburse any funds from the
Settlement Fund

Settlement Agreement - Page 53
<PAGE>

except as provided for in this Settlement Agreement, the Escrow Agreement, as
permitted by Order of the Court or with the written consent of the Parties.

         11.7  In addition to the other terms and conditions contained herein,
the receipt by any Plaintiff, Palm Intervenor, Equity Intervenor or Insider of
any payment from the Settlement Fund or the execution, negotiation or deposit of
any check transferring or paying any amount from the Settlement Fund shall
constitute: (1) a full and final release of the Released Claims; and (2) an
assignment, conveyance and transfer of all CBM I LP and CBM II LP Units,
half-units and other fractional units owned by that person or its designees.

         11.8  The Settlement Fund shall be deemed and considered to be in
custodia legis of the Court, and shall remain subject to the jurisdiction of the
Court, until such time as the Settlement Fund shall be distributed pursuant to
this Settlement Agreement and/or further Order(s) of the Court.

         11.9  In the event that this Settlement Agreement is not approved, is
terminated, canceled, or fails to become effective for any reason, then none of
the Joint Venture, Rockledge, Host Marriott and Marriott International shall be
under any obligation to pay the Settlement Fund. In the event that the Judgment
Order does not become Final, or is reversed, or substantially modified on
appeal, then none of the Joint Venture, Rockledge, Host Marriott and Marriott
International shall be under any obligation to repay to the Escrow Agent the
Settlement Fund and this Settlement Agreement shall be terminated with the Joint
Venture, Rockledge, Host Marriott and Marriott International having no
obligation to pay the Settlement Fund.

         12.   Distribution of the Settlement Amounts and Settlement Documents
               ---------------------------------------------------------------

         12.1  The Escrow Agent, subject to the supervision, direction and
approval of the Court, and subject to all the terms and conditions contained
herein, shall administer and oversee

Settlement Agreement - Page 54
<PAGE>

the distribution of the Settlement Fund to the Plaintiffs, Palm Intervenors,
Equity Intervenors, Insiders, and Plaintiffs' Counsel, pursuant to this
Settlement Agreement, the Escrow Agreement and the Plan of Allocation approved
by the Court.

         12.2  Payment of the Settlement Fund in the manner provided in the Plan
of Allocation shall be deemed conclusive against any claim by any person or
entity receiving such payment.

         12.3  Seven (7) days after the Effective Date, the Escrow Agent will be
authorized to distribute from the Settlement Fund to Plaintiffs' Counsel
Plaintiffs' Counsel's Attorneys' Fees.

         12.4  Seven (7) days after the Effective Date, the Escrow Agent will be
authorized to distribute from the Settlement Fund to the Palm Intervenors,
Equity Intervenors and Insiders who have executed and timely returned their
Proof of Claims to the Claims Administrator before the Effective Date, their
pro-rata portion of the CBM I LP Settlement Amount, CBM II LP Settlement Amount,
Residence Inn I LP Settlement Amount, Residence Inn II LP Settlement Amount,
Fairfield Inn LP Settlement Amount, and/or Desert Springs LP Settlement Amount,
as the case may be, with no proportionate reduction for Plaintiffs' Counsels'
Attorneys' Fees.

         12.5  For any Plaintiff who has submitted a valid Proof of Claim to the
Claims Administrator on or before the Effective Date, within seven (7) business
days following the Effective Date, the Escrow Agent shall distribute to that
person or entity their pro-rata portion of the Net Settlement Fund as set forth
in the Plan of Allocation. For any Plaintiff, Palm Intervenor, Equity Intervenor
or Insider who submits a valid Proof of Claim after the Effective Date, within
seven (7) business days following the receipt of the Proof of Claim by the
Claims Administrator, the Escrow Agent shall distribute to that person or entity
their Net Settlement Amount; provided that for any Plaintiff who has not
returned a Proof of Claim to the Claims Administrator within ninety (90) days
following the Effective Date, Plaintiffs' Counsel, as the

Settlement Agreement - Page 55
<PAGE>

case may be, may execute a Proof of Claim on behalf of that Plaintiff and
distribute to that Plaintiff that Plaintiff's pro-rata portion of the Net
Settlement Fund as set forth in the Plan of Allocation and the Judgment Order.

         12.6 Completed and executed Proof of Claims, the CBM I LP Consent Forms
and the CBM II LP Consent Forms (collectively "Settlement Documents") shall be
sent to the Claims Administrator. Until the Effective Date, the Claims
Administrator shall hold all Settlement Documents and not distribute such
documents to Defendants; provided, however, that the Claims Administrator shall
give at least weekly (and otherwise, upon request) accountings of the status of
same to all counsel for the Settling Parties and will advise all counsel, in
writing, with sufficient back-up proof, including copies of the Consent Forms
and Proof of Claims, when the conditions set forth in Paragraph 10 of the
Settlement Agreement have been satisfied with respect to CBM I LP and CBM II LP.
On the day following the Effective Date, the Claims Administrator shall release
to the Defendants the Settlement Documents it has received to date. After the
Effective Date, the Claims Administrator shall, every two (2) days, release to
the Defendants all Settlement Documents it receives.

         12.7  The Defendants and Defendants' Counsel shall have no
responsibility for or liability whatsoever with respect to the investment or
distribution of the Settlement Fund, the determination, administration,
calculation or payment of claims, or any losses incurred in connection
therewith, or with the formulation or implementation of the Plan of Allocation,
or the giving of any notice with respect to same.

         12.8  It is understood and agreed by the Settling Parties that any
proposed Plan of Allocation of the Settlement Fund including, but not limited
to, any adjustments to be set forth therein, is not a part of this Settlement
Agreement, and may be considered by the Court

Settlement Agreement - Page 56
<PAGE>

separately from the Court's consideration of the fairness, reasonableness and
adequacy of the Settlement set forth in this Settlement Agreement, and any order
or proceedings relating to the Plan of Allocation or any appeal from any order
relating thereto or any reversal or modification thereof shall not operate to
terminate or cancel this Settlement Agreement or affect or delay the finality of
the Judgment Order and the Settlement of the Milkes and Haas Litigations as set
forth herein.

         12.9  Each Plaintiff, Palm Intervenor, Equity Intervenor and Insider
shall be deemed to have submitted to the jurisdiction of the Court with respect
to all matters relating to the allocation of the Settlement Fund and/or any such
person's interest therein.

         12.10 All proceedings with respect to the Settlement described by this
Settlement Agreement and the determination of all controversies relating
thereto, including disputed questions of law and all such fact with respect to
the validity of claims, shall be subject to the jurisdiction of the Court.

         12.11 Payment of the fees and expenses of the Escrow Agent and Claims
Administrator shall be made (i) first, out of any interest accrued on the
Settlement Fund during the time the Settlement Fund is in escrow, and (ii) to
the extent such accrued interest is insufficient to cover such fees and
expenses, by Defendants.

         12.12 Any disputes concerning the identity of the proper Person(s) to
receive any or all of a Plaintiffs' Net Settlement Amount, if not otherwise
resolved, will be finally determined by the Court. In the event of such a
dispute, the Escrow Agent will retain the Net Settlement Amount relating to such
Person(s) in the Settlement Fund until it receives a written order of the Court.

         13.   Agreement to Reduce Attorneys' Fees.

Settlement Agreement - Page 57
<PAGE>

         13.1  In exchange for the waiver of deferred fees identified in
Paragraphs 4.5, 5.5 and 6.5, Plaintiffs' Counsel hereby agrees to reduce their
attorneys' fees by $4.25 million from the amount of attorneys' fees ultimately
awarded by the Court. The amount to be contributed to the Settlement Fund to pay
the attorneys' fees awarded to Plaintiffs' Counsel shall be reduced accordingly.
Anything to the contrary notwithstanding, however, such reduction shall not
reduce the amounts to be contributed to or distributed from the Settlement Fund
for and on behalf of the Plaintiffs. The Settling Parties and Plaintiffs'
Counsel hereby agree that for all purposes, including, without limitation,
federal and state income tax purposes, the $4.25 million shall not be treated as
having been paid.

         14.   Hearing Order, Notice And Settlement Hearing
               --------------------------------------------

         14.1  Promptly after execution of this Settlement Agreement, after all
necessary consents prior to Notice (as set forth in Paragraph 10.1) have been
obtained, and after the SLC has completed its due diligence review, Plaintiffs'
Counsel shall move for certification of a settlement class of the limited
partners (other than Defendants) in CBM I LP, CBM II LP, Residence Inn I LP,
Residence Inn II LP, Fairfield Inn LP and Desert Springs LP, as set forth
herein.

Settlement Agreement - Page 58
<PAGE>

         14.2  Plaintiffs' Counsel, with the advice and consent of Defendants'
Counsel, shall prepare the Notices and the Plan of Allocation. Defendants'
Counsel, with the advice and consent of Plaintiffs' Counsel, shall prepare the
Hearing Order, Consent Solicitations, Consent Forms and Proof of Claims.
Thereafter, Plaintiffs' Counsel shall submit to the Court a motion for
authorization to disseminate the Notice, Proof of Claim, Consent Solicitations
and Consent Forms as appropriate. The Motion shall include (i) a proposed form
of, method for, and date of dissemination of the Notices, Proof of Claims,
Consent Solicitations and Consent Forms; (ii) a proposed date for the return of
the Proof of Claim and Consent Form; and (iii) a proposed hearing date.

         14.3  Defendants will pay the costs of sending the Notice to the CBM I
LP, CBM II LP, Residence Inn I LP, Residence Inn II LP, Fairfield Inn LP and
Desert Springs LP Class Members and to the Palm Intervenors and Equity
Intervenors.

         15.   Plaintiffs' Counsels' Fees And Reimbursement of Litigation Costs
               ----------------------------------------------------------------
               and Expenses
               ------------

         15.1  Plaintiffs' Counsel intend to submit an application or
applications (the "Fee and Expense Application") to the Court for an award from
the Settlement Fund. The amount of attorneys' fees and litigation costs and
expenses awarded by the Court to Plaintiffs' Counsel shall be in the sole
discretion of the Court.

         15.2  Plaintiffs' Counsel agree that they will seek fees, reimbursement
of all litigation costs and expenses, and any other costs and expenses solely
from the Settlement Fund and not from Defendants. In no event will Defendants be
obligated or required to pay any amount in excess of the Settlement Fund, except
as provided herein

         15.3  The procedure for and the allowance or disallowance by the Court
of any Fee and

Settlement Agreement - Page 59
<PAGE>

Expense Applications by Plaintiffs' Counsel are not part of the Settlement set
forth in this Settlement Agreement, and may be considered by the Court
separately from the Court's consideration of the fairness, reasonableness and
adequacy of the Settlement set forth in this Settlement Agreement, and any order
or proceeding relating to Plaintiffs' Counsels' application(s) for the award of
attorneys' fees and reimbursement of litigation costs and expenses, or any
appeal from any order relating thereto or reversal or modification thereof,
shall not operate to terminate or cancel this Settlement Agreement, or affect or
delay the finality of the Judgment Order and the Settlement of the Milkes and
Haas Litigations as set forth herein.

Settlement Agreement - Page 60
<PAGE>

         16.   Continued Interest in the CBM I and CBM II Partnerships
               -------------------------------------------------------

         16.1  Prior to the Judgment Order becoming Final, all Plaintiffs, Palm
Intervenors, Equity Intervenors and Insiders shall continue to own their
interest in CBM I LP and CBM II LP. Prior to entry of the Judgment Order, the
General Partner of CBM I LP and CBM II LP shall make such distributions of Cash
Available for Distribution as defined and provided for in the CBM I LP and CBM
II LP Partnership Agreements, for the period prior to the Judgment Order; it
being understood and agreed that there may be a delay in such distribution to
the extent the Judgment Order is entered in the middle of an accounting period
or the General Partner is otherwise unable to finally determine the amount of
the distribution. In such case, the General Partner shall provide to the Court
an estimate as to the amount of the distribution anticipated for the period
prior to the Judgement Order at the time of the Fairness Hearing to approve the
Settlement. The appropriateness of the determination of the Cash Available for
Distribution in CBM I LP and CBM II LP for the period from execution of this
Settlement Agreement to the entry of the Judgment Order shall be considered by
the Court as part of the approval of the Settlement, and any claims relating to
such distributions shall be covered by the Released Claims.

         16.2  Following entry of a Judgment Order, and until the Judgment Order
becomes Final, assuming there is no appeal, the benefits of ownership of the
Units shall inure to the benefit of the Joint Venture and the Defendants, and no
further Cash Available for Distribution shall be distributed by the General
Partners of CBM I LP or CBM II LP to the Plaintiffs or Palm Intervenors or
Equity Intervenors, and Plaintiffs and the Palm Intervenors and Equity
Intervenors waive any claim for such distributions.

         16.3  Following the entry of the Judgment Order, and in the event of an
appeal, the

Settlement Agreement - Page 61
<PAGE>

owners of CBM I LP Units and owners of CBM II LP Units (collectively, the
"Units") will remain owners, and retain all benefits of the ownership of the
Units (including, but not limited to any distributions) until the Judgment Order
becomes Final; and (ii) the General Partners of CBM I LP and CBM II LP shall
make such distributions of Cash Available for Distribution as provided for and
defined in the CBM I LP and CBM II LP partnership agreements, to the owners of
the Units, for the period from the entry of the Judgment Order and ending when
the Judgment Order becomes Final, it being understood and agreed that such
period will constitute a fiscal period for purposes of determining Cash
Available for Distribution as provided for, defined in and has been customary
pursuant to the CBM I LP and CBM II LP partnership agreements; and it being
further understood and agreed that there may be a delay in such distribution to
the extent the Judgment Order becomes Final in the middle of an accounting
period or the General Partner is otherwise unable to finally determine the
amount of the distribution prior to the Judgment Order becoming Final.

         17.   Interest Prior to Notice
               ------------------------

         17.1  If Defendants have not obtained the consents/permission required
by Paragraph 10.1 of this Settlement Agreement within sixty (60) days of the
execution of this Settlement Agreement, Defendants shall pay from the
sixty-first day forward, Interest on the Settlement Fund. Interest under this
provision shall cease to run as of the date Defendants' Counsel notifies
Plaintiffs' Counsel, Equity's Counsel and Palm's Counsel in writing that the
required consents/permission have been obtained, or the condition has been
waived by Defendants. Assuming that consents/permission required by Paragraph
10.1 have been obtained or waived at some time after the sixty-first day, and
that the Judgment Order is thereafter entered, Defendants will cause to be
deposited pursuant to the provisions of Paragraph 11.1 of this Settlement

Settlement Agreement - Page 62
<PAGE>

Agreement, the Settlement Fund, plus the Interest accumulated pursuant to this
Paragraph. If the Settlement with respect to any Partnership is not consummated
as a result of a failure of any of the conditions set forth in Paragraph 10,
Defendants shall have no obligations under this Paragraph 17.1 with respect to
such Partnerships.

         18.   Binding Nature of This Settlement Agreement
               -------------------------------------------

         18.1  This Settlement Agreement, and each and every term and obligation
hereunder, shall not be subject to limitation, impairment, modification, or
termination for any reason (except as expressly set forth herein), including,
without limitation, the following:

               (a)   Any judicial, legislative or other governmental action,
                     decision or announcement of any type, including but not
                     limited to the tax laws, regulations, rules or opinions,
                     which allegedly relates to any of the terms of this
                     Settlement or to any issue, claim, allegation or defense
                     which has been or might have been asserted in the Milkes
                     and/or Haas Litigations;

               (b)   Any change, whether adverse or positive, in the financial
                     condition, assets, liabilities, business, or any other
                     corporate or personal activity of any of the Settling
                     Parties; or

               (c)   Any allegedly newly discovered facts, legal issues, events
                     or allegations of any type which allegedly relate to any of
                     the terms of this Settlement or to any Released Claims.

         18.2  Except as otherwise provided herein, in the event the Settlement
is terminated, modified in any material respect, or fails to become effective
for any reason, then the Parties to this Settlement Agreement shall be deemed to
have reverted to their respective status in the Milkes Litigation and Haas
Litigation as of the date and time immediately prior to the execution of this
Settlement Agreement and, except as otherwise expressly provided, the Parties
shall proceed in all respects as if this Settlement Agreement, the Settlement
Documents and any related orders had not been entered.

Settlement Agreement - Page 63
<PAGE>

         19.   Miscellaneous Provisions
               ------------------------

         19.1  The signatories to this Settlement Agreement certify that they
are authorized to enter into and sign this Settlement Agreement.

         19.2  The Settling Parties agree to cooperate to the extent necessary
to effectuate and implement all terms and conditions of this Settlement
Agreement and to exercise their best efforts promptly to accomplish the
foregoing terms and conditions of this Settlement Agreement.

         19.3  Plaintiffs' Counsel and the SLC's Counsel agree, and shall
represent to the Court, that the Settlement provided herein is fair, reasonable
and adequate, and that it is in the best interests of the Plaintiffs to enter
into this Settlement Agreement in full and final Settlement of the Milkes and
Haas Litigations and the release of all Released Claims.

         19.4  This Settlement Agreement, the Settlement and any Court Orders
provided herein, whether or not consummated, and any act performed or document
executed pursuant to or in furtherance of this Settlement Agreement or the
Settlement and any negotiations or proceedings relating thereto, shall not be:
(i) deemed or construed to be or used as an admission of, or evidence of, the
validity of any Released Claim, or of any wrongdoing or liability of any
Released Person or any other person; (ii) deemed or construed to be or used as
an admission of, or evidence of, any fault or omission of any of the Released
Persons or of any other person in any civil, criminal or administrative
proceeding in any court, administrative agency or other tribunal; or (iii)
deemed or construed or used to evidence any presumption, concession or admission
by, or to establish liability of, any Released Person. Nothing herein, however,
shall prevent any of the Released Persons from filing or otherwise using this
Settlement Agreement, the Final Judgment Order or related documents in any
action that may be brought against them in order to support a defense or
counterclaim based on principles of res judicata, collateral

Settlement Agreement - Page 64
<PAGE>

estoppel, release, judgment, bar, reduction or any other theory of claim
preclusion or issue preclusion or similar defense or counterclaim. The
Defendants have denied and continue to deny each and all of the claims alleged
in the Milkes and Haas Litigation.

         19.5  Plaintiffs' Counsel agree that any agreements made during the
course of the Milkes and Haas Litigations relating to the confidentiality of
information and requirements for return or destruction of documents shall
survive this Settlement Agreement.

         19.6  All of the Exhibits to this Settlement Agreement are material and
integral parts hereof and are fully incorporated herein.

         19.7  This Settlement Agreement may be amended or modified only by a
written instrument signed by or on behalf of all Settling Parties or their
successors-in-interest, and approved by the Court.

         19.8  This Settlement Agreement and the Exhibits attached hereto
constitute the entire agreement between and among the Settling Parties with
respect to the Settlement of the Milkes and Haas Litigations and the other
matters contained herein, and no representations, warranties or inducements have
been made to any party concerning this Settlement Agreement or its Exhibits
other than the representations, warranties and covenants contained and
memorialized in such documents. Except as otherwise provided herein, as between
the Plaintiffs, Palm Intervenors, Equity Intervenors and Defendants, each party
shall bear its own costs.

         19.9  This Settlement Agreement may be executed in one or more
counterparts and by facsimile signatures. For each such document, all executed
counterparts and each of them shall be deemed to be one and the same instrument.
Plaintiffs' Counsel, Palm's Counsel, Equity's Counsel and Defendants' Counsel
shall exchange among themselves original signed counterparts and a complete set
of original executed counterparts of this Settlement Agreement shall be filed

Settlement Agreement - Page 65
<PAGE>

with the Court.

         19.10 This Settlement Agreement shall be binding upon, and inure to the
benefit of, the successors and assigns of the Plaintiffs, Palm Intervenors,
Equity Intervenors, Defendants, the Joint Venture and Rockledge.

         19.11 The Court shall retain jurisdiction with respect to
implementation and enforcement of the terms of this Settlement Agreement, and
the Plaintiffs, Palm Intervenors, Equity Intervenors, Defendants, the Joint
Venture and Rockledge submit to the jurisdiction of the Court for purposes of
implementing and enforcing the Settlement embodied in this Settlement Agreement.

         19.12 This Settlement Agreement shall be considered to have been
negotiated, executed and delivered, and to be wholly performed, in the State of
Texas, and the rights and obligations of the Settling Parties shall be construed
and enforced in accordance with, and governed by, the internal, substantive laws
of the State of Texas without giving effect to that State's choice of law
principles. Venue of any disputes arising out of or by virtue of this
Stipulation shall be in the 285th Judicial District Court of Bexar County,
Texas.

         19.13 The Settling Parties agree that no single party shall be deemed
to have drafted this Settlement Agreement or any portion thereof and that these
documents are the collaborative effort of all the Plaintiffs' Counsel, Palm's
Counsel, Equity's Counsel and the Defendants' Counsel.

         19.14 The waiver by any party of any breach by any other party of any
term of this Settlement Agreement shall not be deemed or construed as a waiver
with respect to any other party, or of any other breach, whether prior to,
subsequent to or contemporaneous with this Settlement Agreement.

Settlement Agreement - Page 66
<PAGE>

         19.15 This Settlement Agreement shall be deemed to have been executed
upon the last date of execution by the undersigned.

         19.16 Plaintiffs' Counsel shall be solely responsible for filing all
informational and other tax returns necessary to report any net taxable income
earned by the Settlement Fund and shall file all informational and other tax
returns necessary to report any income earned by the Settlement Fund and shall
be solely responsible for taking out of the Settlement Fund, as and when legally
required, any tax payments, including interest and penalties due on income
earned by the Settlement Fund. All taxes (including any interest and penalties)
due with respect to the income earned by the Settlement Fund shall be paid from
the Settlement Fund. Defendants shall have no responsibility to make any filings
relating to the Settlement Fund and will have no responsibility to pay tax on
income earned by the Settlement Fund or pay any taxes on the Settlement Fund,
unless the Settlement is not consummated and the Settlement Fund is returned. In
the event the Settlement is not consummated, the Defendants shall be responsible
for the payment of all taxes (including any interest or penalties) on said
income.

         19.17 Counsel for all the Settling Parties will jointly move to have
the Haas Litigation designated as a complex case and transferred to the
Honorable Michael Peden, Judge of the 285th Judicial District Court of Bexar
County, Texas.

         19.18 In entering this Settlement Agreement, the Plaintiffs, the Palm
Intervenors and Equity Intervenors, by and through their counsel of record in
the Milkes and Haas Litigations, expressly acknowledge, represent, warrant,
covenant and agree that in entering into this Settlement Agreement, they are
relying solely on their own independent analysis, beliefs and judgment
concerning the value of CBM I LP and CBM II LP, and the value of the Released

Settlement Agreement - Page 67
<PAGE>

Claims in CBM I LP, CBM II LP, Residence Inn I LP, Residence Inn II LP,
Fairfield Inn LP and Desert Springs LP , and expressly waive, disclaim, abandon
and relinquish any reliance (actual, perceived or otherwise) on any Defendant in
electing to consummate the transactions made the subject of this Settlement
Agreement, other than as expressly contained herein.

         19.19 Any notice, demand or request which may be permitted, required or
desired to be given in connection herewith shall be in writing and directed to
the other parties and their counsel by certified mail, return receipt requested,
postage prepaid, or by telecopy or by personal delivery at the last known
business addresses of counsel for each party to this Settlement Agreement. In
the event such notice or other communication is effected by personal delivery,
or by telecopy, the date and hour of actual delivery shall fix the time of
notice. In the event of delivery of notice by certified United States mail, the
notice shall be effective three (3) business days after the date upon which the
sealed envelope containing the notice is deposited in the United States mail,
properly addressed and with postage prepaid.

         19.20 In the event that any suit arising out of this Settlement
Agreement is brought by any party to this Settlement Agreement, the prevailing
party or parties shall be entitled to recover their reasonable attorneys' fees
and expenses incurred as a result of such suit.

         19.21 Marriott International and Host Marriott hereby jointly and
severally, unconditionally and irrevocably guarantee the full and timely
performance by the Joint Venture and Rockledge of their obligations hereunder.

         19.22 The headings of any section are formal and not substantive.

Settlement Agreement - Page 68
<PAGE>

AGREED TO THIS 9TH DAY OF MARCH, 2000.
BERG & ANDROPHY

By: /s/ David Berg
    --------------------------
        David Berg
3704 Travis
Houston, Texas  77002
(713) 529-5622 - telephone
(713) 529-3785 - facsimile

HACKERMAN, PETERSON, FRANKEL & MANELA, P.C.

By: /s/ Stephen M. Hackerman
    --------------------------
        Stephen M. Hackerman
        State Bar No. 08667500
1122 Bissonnet
Houston, Texas  77005
(713) 528-2500 - telephone
(713) 528-2509 - facsimile

JAMES R. MORIARTY & ASSOCIATES

By: /s/ James R. Moriarty
    --------------------------
        James R. Moriarty
        State Bar No. 14459000
        Kevin Leyendecker
1150 Bissonet
Houston, Texas  77005
(713) 528-0700 - telephone
(713) 528-1390 - facsimile

YETTER & WARDEN, LLP

By: /s/ David E. Warden
    --------------------------
        David E. Warden
        State Bar No. 20856750
3800 Chase Tower, 600 Travis
Houston, Texas  77002
(713) 238- 2002 - telephone
(713) 238-2002 - facsimile

ATTORNEYS FOR PLAINTIFFS

Settlement Agreement - Page 69
<PAGE>

CHESLOCK, DEELY & RAPP

By: /s/ J. Patrick Deely
    --------------------------
        J. Patrick Deely
        State Bar No. 05713600
405 N. St. Mary's Street, Suite 600
San Antonio, Texas  78205
(210) 224-5008 - telephone
(210) 224-8470 - facsimile

ATTORNEYS FOR INTERVENORS,
EQUITY RESOURCE FUND X, EQUITY RESOURCE FUND XV, EQUITY RESOURCE FUND XVI,
EQUITY RESOURCE FUND XVII, EQUITY RESOURCE FUND XX, EQUITY RESOURCE FUND XXI,
EQUITY RESOURCE BAY FUND, EQUITY RESOURCE BRIDGE FUND, And EQUITY RESOURCE
PILGRIM FUND

GEORGE & DONALDSON, LLP

By: /s/ R. James George
    --------------------------
        R. James George
        State Bar No. 07810000
1100 Norwood Tower
114 W. 7th Street
Austin, Texas  78701
(512) 495-1410 - telephone
(512) 499-0094 - facsimile

ATTORNEYS FOR INTERVENORS
PALM INVESTORS LLC

CUNNINGHAM, DARLOW, ZOOK & CHAPOTON, LLP

By: /s/ Debbie Darlow
    --------------------------
        Tom Alan Cunningham
        State Bar No. 05244700
        Debbie Darlow
        State Bar No. 05186900
        Kelley M. Keller
        State Bar No. 11198240
1700 Chase Tower, 600 Travis
Houston, Texas  77002
(713) 659-5522 - telephone
(713) 659-4466 - facsimile

ATTORNEYS FOR DEFENDANTS,
HOST MARRIOTT CORPORATION, CBM TWO LLC
<PAGE>

And HOST INTERNATIONAL, INC.

Settlement Agreement - Page 71
<PAGE>

WILLIAMS & CONNOLLY LLP

By: /s/ Richard Hoffman
    --------------------------
        Richard Hoffman
725 Twelfth Street, N.W.
Washington, DC  20005
(202) 434-5000 - telephone
(202) 343-5029 - facsimile

JENKENS & GILCHRIST

By: /s/ Seagal V. Wheatley
    --------------------------
Seagal V. Wheatley
State Bar No. 21252000
Charles L. Smith
State Bar No.  00000060
Jenkens & Gilchrist, P.C.
1800 Frost Bank Tower
100 W. Houston Street
San Antonio, Texas  78205
(210) 246-6500 - telephone
(210) 246-5999 - facsimile

ATTORNEYS FOR DEFENDANTS,
MARRIOTT INTERNATIONAL, INC. and
COURTYARD MANAGEMENT CORPORATION

MILBANK, TWEED, HADLEY & McCLOY, LLP

By: /s/ Richard C. Tufaro
    --------------------------
        Richard C. Tufaro
1825 Eye Street, N.W., Suite 1100
Washington, D.C.  20006
(202) 835-7500 - telephone
(202) 835-7586 - facsimile

James L. Walker
Albon O. Head, Jr.
JACKSON & WALKER
112 E. Pecan St., Suite 2100
San Antonio, TX  78205

ATTORNEYS TO THE SPECIAL LITIGATION COMMITTEE
OF COURTYARD BY MARRIOTT II LIMITED PARTNERSHIP
AND COURTYARD BY MARRIOTT LIMITED PARTNERSHIP

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