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Exhibit 10.1  

 
 

INTERNAP CORPORATION    
    
    INDEMNIFICATION AGREEMENT    
  

    This Indemnification Agreement (this "Agreement") dated as of            , 2001 is made between 
InterNAP Corporation, a Washington corporation (the "Company"), and            ("Indemnitee"). 

 
 

Recitals    
  

    Whereas, Indemnitee is a director or officer of the Company and in such capacity is performing valuable
services for the Company; 

    Whereas, the Company and Indemnitee recognize the difficulty in obtaining directors' and officers' liability insurance and the
significant cost of such insurance; 

    Whereas, the Company and Indemnitee further recognize the substantial increase in litigation subjecting directors and officers to
expensive litigation risks at the same time that such liability insurance has been severely limited; 

    Whereas, the Company has adopted bylaws (the "Bylaws") providing for indemnification of the officers, directors, agents and employees
of the Company to the full extent permitted by the Business Corporation Act of Washington (the "Statute"); 

    Whereas, the Bylaws and the Statute specifically provide that they are not exclusive, and thereby contemplate that contracts may be
entered into between the Company and its directors and officers with respect to indemnification of such directors and officers; and 

    Whereas, to induce Indemnitee to serve or continue to serve as a director or officer of the Company, the Company desires to confirm the
contract indemnification rights provided in the Bylaws and agrees to provide the Indemnitee with the benefits contemplated by this Agreement. 

 
 

Agreement    
  

    In consideration of the recitals above, the mutual covenants and agreements herein contained, and Indemnitee's continued service as a director or officer, as
the case may be, of the Company after the date hereof, the parties to this Agreement agree as follows: 

1.  Indemnification Of Indemnitee  

    1.1  Scope.  The Company agrees to hold harmless and indemnify Indemnitee to the full extent provided
under the provisions of the Company's Articles of Incorporation and the Bylaws, and to the full extent permitted by law, notwithstanding that the basis for such indemnification is not specifically
enumerated in this Agreement, the Company's Articles of Incorporation, the Bylaws, any statute or otherwise. In the event of any change, after the date of this Agreement, in any applicable law,
statute or rule regarding the right of a Washington corporation to indemnify a member of its board of directors or an officer, such change, to the extent that it would expand Indemnitee's rights
hereunder, shall be included within Indemnitee's rights and the Company's obligations hereunder, and, to the extent that it would narrow Indemnitee's rights or the Company's obligations hereunder,
shall not affect or limit the scope of this Agreement; provided, however, that in no event shall any part of this Agreement be construed so as to require indemnification when such indemnification is
not permitted by then applicable law. 

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    1.2  Nonexclusivity.  The indemnification provided by this Agreement shall not be deemed exclusive of any
rights to which Indemnitee may be entitled under the Company's Articles of Incorporation, the Bylaws,
any agreement, any vote of shareholders or disinterested directors, the Statute, or otherwise, whether as to action in Indemnitee's official capacity or otherwise. 

    1.3  Included Coverage.  If Indemnitee was or is made a party, or is threatened to be made a party, to or
is otherwise involved (including, without limitation, as a witness) in any Proceeding (as defined below), the Company shall hold harmless and indemnify Indemnitee from and against any and all losses,
claims, damages (compensatory, exemplary, punitive or otherwise), liabilities or expenses, including, without limitation, attorneys' fees, costs, judgments, fines, ERISA excise taxes or penalties,
witness fees, amounts paid in settlement and other expenses incurred in connection with the investigation, defense, settlement or approval of such Proceeding (collectively, "Damages"). 

    1.4  Definition Of Proceeding.  For purposes of this Agreement, "Proceeding" shall mean any completed,
actual, pending or threatened action, suit, claim, hearing or proceeding, whether civil, criminal, arbitrative, administrative, investigative or pursuant to any alternative dispute resolution
mechanism (including an action by or in the right of the Company) and whether formal or informal, in which Indemnitee is, was or becomes involved by reason of the fact that Indemnitee is or was a
director, officer, employee or agent of the Company or that, being or having been such a director, officer, employee or agent, Indemnitee is or was serving at the request of the Company as a director,
officer, employee, trustee or agent of another corporation or of a partnership, joint venture, trust or other enterprise (collectively, a "Related Company"), including service with respect to an
employee benefit plan, whether the basis of such proceeding is alleged action (or inaction) by Indemnitee in an official capacity as a director, officer, employee, trustee or agent or in any other
capacity while serving as a director, officer, employee, trustee or agent; provided, however, that, except with respect to an Enforcement Action (defined in Section 3.1 below, an action
challenging the Company's determination that Indemnitee is not entitled to indemnification pursuant to Section 1.5, and any other action to enforce the provisions of this Agreement,
"Proceeding" shall not include any action, suit, claim or proceeding instituted by or at the direction of Indemnitee unless such action, suit, claim or proceeding is or was authorized by the Company's
Board of Directors. 

    1.5  Determination Of Entitlement.  In the event that a determination of Indemnitee's entitlement to
indemnification is required pursuant to Section 23B.08.550 of the Statute or a successor statute or pursuant to other applicable law, the appropriate decision-maker shall make such
determination; provided, however, that Indemnitee shall initially be presumed in all cases to be entitled to indemnification, that Indemnitee may establish a conclusive presumption of any fact
necessary to such a determination by delivering to the Company a declaration made under penalty of perjury that such fact is true and that, unless the Company shall deliver to Indemnitee written
notice of a determination that Indemnitee is not entitled to indemnification within twenty (20) calendar days after the Company's receipt of Indemnitee's initial written request for
indemnification, such determination shall conclusively be deemed to have been made in favor of the Company's provision of indemnification, and that the Company hereby agrees not to assert otherwise. 

    1.6  Contribution.  If the indemnification provided under Section 1.1 is unavailable by reason of
a court decision, based on grounds other than any of those set forth in paragraphs (b) through (d) of Section 4.1, then, in respect of any Proceeding in which the Company is
jointly liable with Indemnitee (or would be if joined in such Proceeding), the Company shall contribute to the amount of Damages (including attorneys' fees) actually and reasonably incurred and paid
or payable by Indemnitee in such proportion as is appropriate to reflect (i) the relative benefits received by the Company on the one hand and Indemnitee on the other from the transaction from
which such Proceeding arose and (ii) the relative fault of the Company on the one hand and of Indemnitee on the other in connection with the events that resulted in such Damages as well as any
other relevant equitable considerations. The relative fault of the Company on the one hand and of Indemnitee on the other shall be determined by 

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reference to, among other things, the parties' relative intent, knowledge, access to information and opportunity to correct or prevent the circumstances resulting in such Damages. The Company agrees
that it would not be just and equitable if contribution pursuant to this Section 1.6 were determined by pro rata allocation or any other method of allocation that does not take account of the
foregoing equitable considerations. 

    1.7  Survival.  The indemnification and contribution provided under this Agreement shall apply to any and
all Proceedings, notwithstanding that Indemnitee has ceased to serve the Company or a Related Company and shall continue so long as Indemnitee shall be subject to any possible Proceeding, whether
civil, criminal or investigative, by reason of the fact that Indemnitee was a director or officer of the Company or serving in any other capacity referred to in Section 1.4 of this Agreement. 

2.  Expense Advances.  

    2.1  Generally.  The right to indemnification of Damages conferred by Section 1 shall include the
right to have the Company pay Indemnitee's expenses in any Proceeding as such expenses are incurred and in advance of such Proceeding's final disposition (such right, an "Expense Advance"). 

    2.2  Conditions To Expense Advance.  The Company's obligation to provide an Expense Advance is subject to
the following conditions: 

    2.2.1  Undertaking.  If the Proceeding arose in connection with Indemnitee's service as a director or an
officer of the Company (and not in any other capacity in which Indemnitee rendered service, including
service to any Related Company), then Indemnitee or Indemnitee's representative shall have executed and delivered to the Company an undertaking, which need not be secured and shall be accepted without
reference to Indemnitee's financial ability to make repayment, by or on behalf of Indemnitee to repay all Expense Advances if it shall ultimately be determined by a final, unappealable decision
rendered by a court having jurisdiction over the parties that Indemnitee is not entitled to be indemnified under this Agreement or otherwise. 

    2.2.2  Cooperation.  Indemnitee shall give the Company such information and cooperation as it may
reasonably request and as shall be within Indemnitee's legal power to so provide. 

    2.2.3  Affirmation.  Indemnitee shall furnish, upon request by the Company and if required under
applicable law, a written affirmation of Indemnitee's good faith belief that any applicable standards of conduct have been met by Indemnitee. 

3.  Procedures For Enforcement  

    3.1  Enforcement.  In the event that any claim for indemnification, whether an Expense Advance or
otherwise, is made hereunder and is not paid in full within ninety (90) calendar days after written notice of such claim is delivered to the Company, Indemnitee may, but need not, at any time
thereafter bring suit against the Company to recover the unpaid amount of the claim (an "Enforcement Action"). It shall be a defense to any action for which a claim for indemnification is made under
Section 1 hereof (other than an action brought to enforce a claim for expenses pursuant to Section 2 hereof, provided that the required undertaking has been tendered to the Company) that
Indemnitee is not entitled to indemnification because of the limitations set forth in Section 4 hereof. 

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    3.2  Presumptions In Enforcement Action.  In any Enforcement Action, the following presumptions (and
limitation on presumptions) shall apply: 

    (a) The Company expressly affirms and agrees that it has entered into this Agreement and assumed the obligations imposed
on it hereunder to induce Indemnitee to continue as a director or officer, as the case may be, of the Company; 

    (b) Neither (i) the failure of the Company (including the Company's Board of Directors, independent or special
legal counsel or the Company's shareholders) to have made a determination prior to the commencement of the Enforcement Action that indemnification of Indemnitee is proper in the circumstances nor
(ii) an actual determination by the Company, its Board of Directors, independent or special legal counsel or shareholders that Indemnitee is not entitled to indemnification shall be a defense
to the Enforcement Action or create a presumption that Indemnitee is not entitled to indemnification hereunder; and 

    (c) If Indemnitee is or was serving as a director or officer of a corporation of which a majority of the shares entitled
to vote in the election of its directors is held by the Company or as a partner, trustee or otherwise in an executive or management capacity in a partnership, joint venture, trust or other enterprise
of which the Company or a wholly owned subsidiary of the Company is a general partner or has a majority ownership, then such corporation, partnership, joint venture, trust or other enterprise shall
conclusively be deemed a Related Company and Indemnitee shall conclusively be deemed to be serving such Related Company at the Company's request. 

    3.3  Attorneys' Fees And Expenses For Enforcement Action.  In the event Indemnitee is required to bring
an Enforcement Action, the Company shall pay all of Indemnitee's fees and expenses in bringing and pursuing the Enforcement Action (including attorneys' fees at any stage, including on appeal);
provided, however, that the Company shall not be required to provide such payment for such attorneys' fees or expenses if a court of competent jurisdiction determines that each of the material
assertions made by Indemnitee in such Enforcement Action was not made in good faith. 

4.  Limitations On Indemnity; Mutual Acknowledgment  

    4.1  Limitation On Indemnity.  No indemnity pursuant to this Agreement shall be provided by the Company: 

    (a) On account of any suit in which a final, unappealable judgment is rendered against Indemnitee for an accounting of
profits made from the purchase or sale by Indemnitee of securities of the Company in violation of the provisions of Section 16(b) of the Securities Exchange Act of 1934, as amended; 

    (b) For Damages that have been paid directly to Indemnitee by an insurance carrier under a policy of insurance
maintained by the Company; 

    (c) With respect to remuneration paid to Indemnitee if it shall be determined by a final judgment or other final
adjudication that such remuneration was in violation of law; 

    (d) On account of Indemnitee's conduct which is finally adjudged by a court having jurisdiction in the matter to have
been intentional misconduct, a knowing violation of law or the RCW 23B.08.310 or any successor provision of the Statute, or a transaction from which Indemnitee derived an improper personal benefit; 

    (e) If a final decision by a court having jurisdiction in the matter with no further right of appeal shall determine
that such indemnification is not lawful (and, in this respect, both the Company and Indemnitee have been advised that the Securities and Exchange Commission (the "SEC") believes that indemnification
for liabilities arising under the federal securities 

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laws is against public policy and is, therefore, unenforceable and that claims for indemnification should be submitted to appropriate courts for adjudication); or 

    (f)  In connection with any proceeding (or part thereof) initiated by Indemnitee, or any proceeding by Indemnitee
against the Company or its directors, officers, employees or other indemnitees, unless (i) such indemnification is expressly required to be made by law, (ii) the proceeding was
authorized by the Board of Directors of the Company, (iii) such indemnification is provided by the Company, in its sole discretion, pursuant to the powers vested in the Company under the
Statute, or (iv) the proceeding is initiated pursuant to Section 3.3 hereof. 

    4.2  Partial Indemnification.  If Indemnitee is entitled under any provision of this Agreement to
indemnification by the Company for some or a portion of any Damages in connection with a Proceeding, but not, however, for the total amount thereof, the Company shall nevertheless indemnify Indemnitee
for the portion of such Damages to which Indemnitee is entitled. 

    4.3  Mutual Acknowledgment.  The Company and Indemnitee acknowledge that, in certain instances, federal
law or public policy may override applicable state law and prohibit the Company from indemnifying Indemnitee under this Agreement or otherwise. For example, the Company and
Indemnitee acknowledge that the SEC has taken the position that indemnification is not permissible for liabilities arising under certain federal securities laws, and federal legislation prohibits
indemnification for certain ERISA violations. Furthermore, Indemnitee understands and acknowledges that the Company has undertaken or may be required in the future to undertake with the SEC to submit
the question of indemnification to a court in certain circumstances for a determination of the Company's right under public policy to indemnify Indemnitee. 

5.  Notification And Defense Of Claim. 

    5.1  Notification.  Not later than thirty (30) days after receipt by Indemnitee of notice of the
commencement of any Proceeding, Indemnitee shall, if a claim in respect thereof is to be made against the Company under this Agreement, notify the Company of the commencement thereof; but the omission
so to notify the Company will not, however, relieve the Company from any liability which it may have to Indemnitee under this Agreement unless and only to the extent that such omission can be shown to
have prejudiced the Company's ability to defend the Proceeding. 

    If,
at the time of the receipt of a notice of a claim pursuant to Section 5.1, the Company has director and officer liability insurance in effect, the Company shall give prompt
notice of the commencement of such proceeding to the insurers in accordance with the procedures set forth in the respective policies. The Company shall take all necessary or desirable action to cause
such insurers to pay, on behalf of the Indemnitee, all amounts payable as a result of such Proceeding in accordance with the terms of such policies. 

    5.2  Defense Of Claim.  With respect to any such Proceeding as to which Indemnitee notifies the Company
of the commencement thereof: 

    (a) The Company may participate therein at its own expense; 

    (b) The Company, jointly with any other indemnifying party similarly notified, may assume the defense thereof, with
counsel satisfactory to Indemnitee. After notice from the Company to Indemnitee of its election so to assume the defense thereof, the Company shall not be liable to Indemnitee under this Agreement for
any legal or other expenses (other than reasonable costs of investigation) subsequently incurred by Indemnitee in connection with the defense thereof unless (i) the employment of counsel by
Indemnitee has been authorized by the Company, (ii) Indemnitee shall have reasonably concluded that
there may be a conflict of interest between the Company (or any other person or persons included in the joint defense) 

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and Indemnitee in the conduct of the defense of such action, (iii) the Company shall not, in fact, have employed counsel to assume the defense of such action, in each of which cases the fees
and expenses of counsel shall be at the Company's expense, or (iv) the Company is not financially or legally able to perform its indemnification obligations. The Company shall not be entitled
to assume the defense of any proceeding brought by or on behalf of the Company or as to which Indemnitee shall have reasonably made the conclusion provided for in (ii) or (iv) above; 

    (c) The Company shall not be liable to indemnify Indemnitee under this Agreement for any amounts paid in settlement of
any Proceeding effected without its written consent; 

    (d) The Company shall not settle any action or claim in any manner that would impose any penalty or limitation on
Indemnitee without Indemnitee's written consent; and 

    (e) Neither the Company nor Indemnitee will unreasonably withhold its, his or her consent to any proposed settlement. 

    6.  Severability.  Nothing in this Agreement is intended to require or shall be construed as requiring
the Company to do or to fail to do any act in violation of applicable law. The Company's inability, pursuant to court order, to perform its obligations under this Agreement shall not constitute a
breach of this Agreement. The provisions of this Agreement shall be severable, as provided in this Section 6. If this Agreement or any portion hereof shall be invalidated on any ground by any
court of competent jurisdiction, then the Company shall nevertheless indemnify or make contribution to Indemnitee to the full extent permitted by any applicable portion of this Agreement that shall
not have been invalidated, and the balance of this Agreement not so invalidated shall be enforceable in accordance with its terms. 

7.  Governing Law; Binding Effect; Amendment And Termination.

    (a) This Agreement shall be interpreted and enforced in accordance with the laws of the State of Washington. 

    (b) This Agreement shall be binding on Indemnitee and on the Company and its successors and assigns (including any
transferee of all or substantially all its assets and any successor by merger or otherwise by operation of law), and shall inure to the benefit of Indemnitee and Indemnitee's heirs, personal
representatives and assigns and to the benefit of the Company and its successors and assigns. The Company shall not effect any merger, consolidation, sale of all or substantially all of its assets or
other reorganization in which it is not the surviving entity, unless the surviving entity agrees in writing to assure all of the Company's obligations under this Agreement. 

    (c) No amendment, modification, termination or cancellation of this Agreement shall be effective unless in writing
signed by both parties hereto. 

    8.  Entire Agreement.  This Agreement is the entire agreement of the parties regarding its subject matter
and supersedes all prior written or oral communications or agreements. 

    9.  Counterparts.  This Agreement may be executed in two or more counterparts, each of which shall be
deemed an original, but all of which together shall constitute one instrument. 

    10.  Amendments; Waivers.  Neither this Agreement nor any provision may be amended except by written
agreement signed by the parties. No waiver of any breach or default shall be considered valid unless in writing, and no such waiver shall be deemed a waiver of any subsequent breach or default. 

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    11.  Notices.  All notices, claims and other communications hereunder shall be in writing and made by
hand delivery, registered or certified mail (postage prepaid, return receipt requested), facsimile or overnight air courier guaranteeing next-day delivery: 

    (a) If to the Company, to: 

InterNAP
Corporation

601 Union Street, Suite 1000

Seattle, WA 98101

Attn: Anthony C. Naughtin 

with
a copy to: 

Cooley
Godward LLP

5200 Carillon Point

Kirkland, WA 98033

Attn: Christopher W. Wright, Esq. 

    (b) If to Indemnitee, to the address specified on the last page of this Agreement or to such other address as either
party may from time to time furnish to the other party by a notice given in accordance with the provisions of this Section 11. All such notices, claims and communications shall be deemed to
have been duly given if (i) personally delivered, at the time delivered, (ii) mailed, five days after dispatched, (iii) sent by facsimile transmission, upon confirmation of
receipt, and (iv) sent by any other means, upon receipt. 

12. Directors' And Officers' Insurance. 

    (a) The Company hereby covenants and agrees that, subject to the provisions of Section 12(c) hereof, the Company
shall, from a date no later than the closing date of the Company's first registered public offering of the Company's Common Stock pursuant to an effective registration statement under the Securities
Act of 1933, as amended, maintain directors' and officers' insurance in full force and effect so long as Indemnitee continues to serve as a director or officer of the Company and thereafter so long as
Indemnitee shall be subject to any possible Proceeding. 

    (b) In all policies of directors' and officers' insurance, Indemnitee shall be named as an insured in such a manner as
to provide Indemnitee the same rights and benefits, subject to the same limitations, as are accorded to the Company's directors or officers most favorably insured by such policy. 

    (c) Notwithstanding the foregoing provisions of this Section 12, the Company shall have no obligation to maintain
directors' and officers' insurance if the Company determines in good faith that such insurance is not reasonably available, the premium costs for such insurance are disproportionate to the amount of
coverage provided, or the coverage provided by such insurance is limited by exclusions so as to provide an insufficient benefit. 

    13.  Specific Performance.  The Company and Indemnitee agree herein that a monetary remedy for breach of
this Agreement, at some later date, will be inadequate, impracticable and difficult of proof, and further agree that such breach would cause Indemnitee irreparable harm. Accordingly, the Company and
Indemnitee agree that Indemnitee shall be entitled to temporary and permanent injunctive relief to enforce this Agreement without the necessity of proving actual damages or irreparable harm. The
Company and Indemnitee further agree that Indemnitee shall be entitled to such injunctive relief, including temporary restraining orders, preliminary injunctions and permanent injunctions, without the
necessity of posting bond or other undertaking in connection therewith. Any such requirement of bond or undertaking is hereby waived by the Company, and the Company 

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acknowledges that in the absence of such a waiver, a bond or undertaking may be required by the court. 

    14.  Subrogation.  In the event of payment under this Agreement, the Company shall be subrogated to the
extent of such payment to all of the rights of recovery of Indemnitee, who shall execute all documents required and shall do all acts that may be necessary to secure such rights and to enable the
Company effectively to bring suit to enforce such rights. 

[Signature Page Follows] 

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    In Witness Whereof, the parties hereto have executed this Agreement on and as of the day and year first above written. 

	 	 	COMPANY:
	 	 	INTERNAP CORPORATION
	

 	
 	
By:	
 	

 
	 	 	 	 	

	

 	
 	

Its:	
 	

 
	 	 	 	 	

 

	

 	
 	
INDEMNITEE:
	

 	
 	

Print name:	
 	

	

 	
 	

Address:	
 	

 
	 	 	 	 	

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INTERNAP CORPORATION INDEMNIFICATION AGREEMENT

Recitals

Agreement<PAGE>

                                                                   EXHIBIT 10.57

                                      LEASE

         This lease is made February 7, 2001 between 1815 LLC ("Landlord"),
whose address is c/o Tri-Y, Inc., 1835 W. Main Street, Zanesville, Ohio 43701,
and ADS ALLIANCE DATA SYSTEMS, INC. ("Tenant"), whose address is 800 TechCenter
Drive, Gahanna, OH 43230 who hereby agree as follows:

         Section 1 LEASE OF PREMISES. On the terms and subject to the conditions
set forth in this lease, Landlord hereby leases to Tenant and Tenant hereby
leases from Landlord the real property situated in Muskingum County, Ohio and
more fully described on the attached Exhibit A, including the 5,400 square foot
building (the "Building") and all other improvements thereon and appurtenances
thereto (the "Premises"), subject only to those matters listed on the attached
Exhibit A (the "Permitted Exceptions"). Landlord shall provide Tenant with at
least 50 paved parking spaces adjacent to the Premises as shown on Exhibit B
attached hereto. Such parking spaces shall be designated for the Tenant's sole
use. Landlord shall also provide Tenant with unrestricted driveway access from
the main road to the parking area. Tenant shall maintain such parking lot and
driveway at its expense, including without limitation snow removal.

         Section 2 TERM. The initial term of this lease (the "Initial Term")
shall be a period of five (5) years commencing on the earlier of the following
dates (the "Commencement Date"): (a) the date which is 15 days after the
"Improvements" (as defined in Section9, below) have been substantially
completed, or (b) the date on which Tenant occupies and commences its business
operations in substantially the entire Premises, and ending on the date
preceding the fifth anniversary of the Commencement Date, both dates inclusive,
unless terminated earlier as provided herein. Tenant may at its option terminate
this lease early on the second or third anniversary of the Commencement Date, if
(x) Tenant gives Landlord at least ninety (90) days prior written notice

                                     Page 1
<PAGE>

of its election to terminate early, and (y) pays Landlord a sum of $75,000, such
sum shall be paid by Tenant on or before the termination date of the lease.

         Section 3 RENTAL. During the Initial Term of this lease, Tenant shall
pay Landlord rent for the Premises in the amount of $13 per square foot, which
will be seventy thousand two hundred dollars ($70,200) per annum, payable in
twelve (12) equal monthly installments of five thousand eight hundred fifty
dollars ($5,850.00) each, due and payable in advance on the first day of each
calendar month during the term of this lease. For all purposes under this lease,
a "lease year" shall be the 12-month period from the Commencement Date through
the date immediately preceding the anniversary of the Commencement Date and each
successive 12-month period thereafter. It is the purpose and intent of the
Landlord and Tenant that, except for Landlord's obligations under this lease and
as otherwise provided in this lease, the rent shall be net to Landlord so that
this lease shall yield, net to Landlord, the rent specified in Section3 and
Section4 hereof in each year during the term of this lease and that all costs,
expenses and obligations normally paid for by the Tenant in a triple net lease
which becomes due during the term of this lease shall be paid by Tenant.

         Unless otherwise provided under this lease, all payments to be made by
Tenant to Landlord under this lease shall be made by normal business methods and
shall be paid to Landlord at Landlord's address for receiving notices under
Section 20.

         Landlord represents and warrants to Tenant that the Premises are free
and clear of all mortgages, deeds of trust, liens, or encumbrances, except for
the Permitted Exceptions, which include the first mortgage to be given to Bank
First which will secure a promissory note in the original principal amount not
to exceed $410,000 and that the First Mortgage is current to date and Landlord
is not otherwise in default thereunder. If Landlord defaults in making any
payment

                                     Page 2
<PAGE>

due on the First Mortgage, or on any other mortgage, deed or trust, security
interest, lien, or other claim which now or hereafter may encumber the Premises,
Tenant may, after five (5) days prior notice to Landlord (if permitted by the
mortgagee's non-disturbance agreement), make any such payments directly out of
the rent payments due Landlord under this lease. All such payments by Tenant
shall constitute a payment of rent to Landlord under this lease; provided that
nothing in this lease shall be construed as an assumption by Tenant of
Landlord's obligations under any such mortgage, security interest, lien, or
other claim.

         Section 4 TENANT'S RENEWAL OPTIONS. Tenant shall have the options to
renew this lease for five (5) additional terms of two (2) years each (the
"Renewal Terms"). Each of Tenant's renewal options shall be exercisable by
Tenant's written notice to Landlord which states that Tenant thereby exercises
its renewal option under this Section 4 and shall be deemed exercised if Tenant
gives such a notice to Landlord: (a) at least 120 days prior to the end of the
Initial Term or the then current Renewal Term, of (b) if no more than 150 days
prior to the end of the Initial Term or the then current Renewal Term, Landlord
requests Tenant to notify Landlord if Tenant intends to renew, then Tenant shall
within 30 days after such written request from Landlord exercise or waive its
option to renew the Term. Any reference in this lease to the "term of this
lease" shall include the Renewal Term if Tenant exercises its renewal option
under this Section 4.

         All terms and conditions of this lease which are applicable during the
Initial Term shall also be applicable during each Renewal Term, except that the
rent shall be adjusted to the amount set forth below.

<TABLE>
<CAPTION>
         RENEWAL TERM                                RENTAL PER SQUARE FOOT
<S>                                                  <C>
         First                                                    $13.25
         Second                                                   $13.50

                                     Page 3
<PAGE>

         Third                                                    $13.75
         Fourth                                                   $14.00
         Fifth                                                    $14.25
</TABLE>

         Section 5 TAXES AND ASSESSMENTS. Tenant shall pay or caused to be paid
when due (a) all taxes or charges now or hereafter imposed with respect to any
business conducted on the Premises or any fixtures or personal property
contained on the Premises or used in connection with Tenant's business on the
Premises, and (b) all installments of real estate taxes and assessments on the
Premises which become due and payable with respect to the term of this lease
(prorated to the Commencement Date and the termination date of this lease).

         Section 6 UTILITIES. Tenant shall pay or cause to be paid all charges
for utility services used or consumed on the Premises during the term of this
lease, including without limitation water, sewer, gas, electricity, and
telephone. Landlord represents to Tenant that all such utility services are
currently available to the Premises through public rights-of-way or valid
easements in the following current capacities:

<TABLE>
<S>               <C>                    <C>
         (a)      Electric               600 Amp 120/208 Volt
         (b)      Water                  6 inch main - 1 1/2" to Building
         (c)      Sewer                  4 inch main
         (d)      Natural Gas            Sufficient for Building
         (e)      Telephone              Make 4" Conduit available for Vendor
                                         from new power pole to building
</TABLE>

         Section 7 INSURANCE. Tenant shall maintain or cause to be maintained in
force, at all times during the term of this lease:

                                     Page 4
<PAGE>

                  (a) Comprehensive public liability insurance with respect to
the Premises having limits not less than Three Million Dollars ($3,000,000.00)
for bodily injury to any one person, Three Million Dollars ($3,000,000.00) for
bodily injuries arising out of one occurrence, and Two Hundred Fifty Thousand
Dollars ($250,000.00) for property damage. If coverage is not available in the
exact amounts stated, the coverage in the nearest higher amount available shall
be obtained;

                  (b) Fire and extended coverage insurance on the Premises in an
amount not less than then the current full insurable value of the Premises;

                  (c) Rent interruption insurance for the sole benefit of
Landlord in an amount not less than the annual rental then in effect; and

                  (d) Fire and extended coverage insurance with respect to all
Tenant's personal property within the Premises. Each insurance policy furnished
by Tenant under this Section 7 shall be issued by a reputable insurance company
licensed to do business in Ohio and reasonably approved by Landlord; and shall
name Tenant, Landlord, and any persons reasonably designated by Landlord as
insured parties therein; and shall provide for written notice to Landlord and
its designees at least ten (10) days prior to any cancellation, expiration
without renewal, or modification of such policy. Upon request, Tenant shall
furnish Landlord with certificates of coverage and evidence of payment of
premiums thereon from time to time. Tenant does hereby waive any and all rights
of recovery against Landlord for any insurable loss arising out of or occurring
to any of Tenant's property situated on the Premises, and to the extent
permitted by the policy providing such insurance, hereby agrees not to assign to
any insurer any right or cause of action for any insured damage to said Premises
which may occur during the term of this lease, provided that this waiver shall
not limit Tenant's rights to insurance proceeds under Section 12 below.

                                     Page 5
<PAGE>

Landlord does hereby waive any and all rights of recovery against Tenant for
loss arising out of or occurring to the Premises or any of Landlord's property
therein which loss is covered by insurance maintained under this lease, and to
the extent permitted by the policy providing such insurance, agrees not to
assign to any insurer any right or cause of action for insured damage to the
Premises which may occur during the term of this lease.

         Section 8 USE OF PREMISES. Tenant shall use the Premises during the
term of this lease for any and all purposes that are from time to time permitted
by applicable laws as applicable to Tenant's regular lines of business,
including without limitation the following: customer service center, collections
center, data processing, payment and remittance processing, and other general
office uses. Tenant shall use the Premises only in a lawful, careful, safe, and
proper manner and shall not commit or permit any waste of or on the Premises.

         Tenant will not use, store, or dispose of any Hazardous Substances (as
hereinafter defined) on the Premises except for immaterial amounts that are
exempt from or do not give rise to any violation of the Environmental Laws (as
hereinafter defined) and except for the handling, use or storage of Hazardous
Substances in the normal course of Tenant's business conducted at the Premises
in accordance with the terms of this lease and in compliance with all
Environmental Laws. As used herein, "Hazardous Substances" shall mean and
include all hazardous substances, toxic substances, wastes, materials,
compounds, pollutants and contaminates including, without limitation, asbestos,
polychlorinated biphenyls and petroleum products that are included under or
regulated by the Comprehensive Environmental Response, Compensation and
Liability Act, as amended, 42 U.S.C. 9601, et. seq., the Toxic Substances
Control Act, 15 U.S.C. 2601 et. seq., the Resource Conservation and Recovery
Act, 42 U.S.C. 6901, et. seq., the Water Quality Act of 1987, 33 U.S.C. 1251 et.
seq., and the Clean Air Act, 42 U.S.C. 7041, et. seq., any state and local

                                     Page 6
<PAGE>

statute, ordinance, law, code, rule, regulation or order regulating or imposing
liability (including strict liability) or standards of conduct regarding
Hazardous Substance (herein the "Environmental Laws"). Tenant shall indemnify
Landlord and hold Landlord harmless from and against any loss, damage, cost,
expense or liability (including strict liability) directly or indirectly arising
out of or attributable to the generation, storage, release, threatened release,
discharge or disposal during the term of this lease of Hazardous Substance on,
under, or from the Premises by Tenant or any employee, agents, contractors or
subcontractors of Tenant or by third persons occupying or present on the
Premises, under the direction or control of Tenant, including, without
limitation: (a) those damages or expenses arising under the Environmental Laws;
(b) the cost of any required or necessary repair, cleanup or detoxification of
the Premises, including the soil and ground water thereof, and the preparation
and implementation of any closure, remedial or other required plans; (c)
quantifiable damage to any natural resources; and (d) all reasonable costs and
expenses incurred by Landlord in connection with clauses (a), (b), and (c)
including, but not limited to reasonable attorney's fees. Tenant's obligations
shall survive the expiration or earlier termination of the term of this lease
for a period of one year after such expiration or termination.

         Landlord (i) represents an warrants to Tenant that on the date of this
lease, the Premises, including all areas under and adjacent to the Premises, are
free from all Hazardous Substances and in compliance with all Environmental
Laws, and (ii) agrees to indemnify Tenant and hold Tenant harmless from and
against any loss, damage, cost (including strict liability) directly or
indirectly arising out of or attributable to the generation, storage, release,
threatened release, discharge or disposal prior to the term of this lease, or
the existence on the date of this lease, of Hazardous Substances on, under,
about, or from the Premises (whether caused by Landlord or

                                     Page 7
<PAGE>

any employee, agents, contractors or subcontractors of Landlord or by third
persons occupying or present on the Premises), including without limitation: (a)
those costs, penalties, damages or expenses arising under the Environmental
Laws; (b) the cost of any required or necessary investigation, repair, cleanup
or detoxification of the Premises, including the soil and ground water thereof,
and the preparation and implementation of any closure, removal, remedial or
other required plan or study; (c) damage to any natural resources; and (d) all
reasonable costs and expenses incurred by Tenant in connection with clauses (a),
(b), and (c) including, but not limited to reasonable attorney's fees.
Landlord's obligations shall survive the expiration or earlier termination of
the term of this lease for a period of one year after such expiration or
termination.

         Section 9 IMPROVEMENTS. Landlord and Tenant have agreed upon a
construction plan which is attached hereto as Exhibit B.

         Section 10 MAINTENANCE AND REPAIRS. Subject to Landlord's obligations
under the next paragraph of this section, Tenant shall, at Tenant's expense,
perform all maintenance to the interior, non-structural features of the
Premises, including without limitation the interior floors, walls, ceilings,
doors, windows; all heating, ventilation and air-conditioning (HVAC);
electrical; plumbing; lighting (including bulb replacement); and other systems,
fixtures, and equipment therein, to maintain the Premises in good order and
condition of repair and safety during the term of this lease, ordinary wear and
tear and damage by casualty excepted.

         Except in instances covered by Section 12 or Section 13, which will be
governed by such sections, Landlord shall, at its expense, maintain the roof,
exterior walls, foundation, subfloors, common driveways and structure of the
Building in good order and condition of repair and safety. If Landlord fails to
perform or commence the performance of (and thereafter diligently prosecute

                                     Page 8
<PAGE>

them to completion) the maintenance or repair of such items shall commence
within 15 days and be completed in a reasonable time after receipt of notice of
the need thereof from Tenant, Tenant may, at its option and upon prior written
notice to Landlord, perform such maintenance or repair obligations and the
amount of all costs and expenses incurred by Tenant shall be paid to Tenant upon
demand, or at Tenant's option Tenant may offset such amount against future rent
obligations of Tenant; provided that nothing in this lease shall be construed as
an assumption by Tenant of Landlord's obligation to perform such obligations.
This right shall be in addition to, and not in limitation of, any other rights
which Tenant may have under this lease for Landlord's failure to perform such
obligations.

         Section 11 ALTERATIONS, SIGNS, MECHANICS' LIENS. Tenant shall have the
right from time to time to make changes, alterations, or additions in or to the
Premises or to restore, remove, replace, or reconstruct all or any part of the
Premises (hereinafter collectively, called an "alteration") provided that: (a)
no such alteration shall reduce or otherwise impair the value of the Premises;
(b) all costs relating to any such alteration shall be paid by Tenant; (c) if
such alteration is structural in nature, pierces the roof or any exterior wall
of the Building, or is estimated to cost more than Twenty-Five Thousand Dollars
($25,000), then Landlord shall have given its prior consent to the alterations
being made, which consent will not be unreasonably withheld; and (d) any such
alteration shall be made in compliance with all requirements of any governmental
authority having jurisdiction.

         Tenant shall have the right from time to time attach, install, and
furnish to an in the Premises (including without limitation the land, building,
and other improvements) fixtures, signs, equipment, and personal property
relating to Tenant's use of the Premises. Landlord shall have no right, title,
or interest to or in any such fixtures, signs, equipment, and personal property,

                                     Page 9
<PAGE>

and Tenant shall remove them at any time at or prior to the end or sooner
termination of the term of this lease. Tenant shall pay the cost of all repairs
of damage caused by such removal. Tenant shall have the right to install, at its
expense, a monument sign near the main access road to the Building to be
approved by Landlord and meet Local Building Codes.

         Section 12 RESTORATION. If all or any part of the Premises is damaged
or destroyed at any time during the term of this lease and the cost to repair
such damage or destruction is less than 50% of the Premises as reasonably
estimated by Landlord and agreed by Tenant, then Tenant shall repair or restore
the Premises to their previous or better condition with all reasonable speed,
and for this purpose Landlord shall have the right to use all insurance proceeds
payable in connection with such damage or destruction, and if all such insurance
proceeds are not made available to Tenant for this purpose, Tenant shall have
the right to terminate this lease. If such destruction or damage occurs during
the first sixty (60) months of the term of this lease, Tenant shall have the
option to terminate this lease and any further liability hereunder in which case
all insurance proceeds shall be paid to the Landlord: If such destruction or
damage occurs after the first sixty (60) months of the term of this lease and
such damage or destruction is greater than 50% of the Premises, Landlord and
Tenant shall each then have the option to terminate this lease and any further
liability hereunder in which case, all insurance proceeds shall be paid to
Landlord.

         If neither Tenant nor Landlord elects to exercise an applicable option
to terminate this lease by notice to the other within sixty (60) days after
their agreement upon the estimated cost of the repair, then Tenant shall proceed
to repair or restore the Premises to their previous or better condition with all
reasonable speed.

                                    Page 10
<PAGE>

         In the event that any damage or destruction to the Premises occurs
which does not result in a termination of this lease, the rental payable by
Tenant shall be abated during the period of any restoration or repair of the
Premises, in such proportion that the floor area of the Building of which the
Tenant is deprived as a result of such damage or destruction or the repair or
restoration necessitated thereby bears to the total floor area of the Building.

         If all or any part of the Premises is damaged or destroyed, Tenant
promptly shall notify Landlord thereof.

         Section 13 CONDEMNATION. If all or materially all of the Premises or
the Building is taken in appropriation proceedings or by right of eminent
domain, then this lease shall terminate as of the date Tenant is deprived of
physical possession thereof and the rent and other charges under this lease to
be paid by Tenant shall be paid to that date. For purposes of this lease,
"materially all of the Premises or the Building" shall be considered as having
been taken if the portion which is taken would leave remaining a portion which
(due either to the area so taken or the location of the parts taken) would not
under then existing economic conditions, zoning laws, building regulations or
Tenant's current or anticipated needs readily accommodate improvements or a
nature similar to those improvements comprising the Premises at the time of such
taking of size sufficient, together with improvements not taken, to permit
Tenant in Tenant's reasonable determination to operate its business in a
reasonably efficient manner.

         If less than materially all of the Premises or the Building is taken in
appropriation proceedings or by right of eminent domain, then this lease shall
not terminate and all damages and compensation awarded for such taking shall be
reinvested in to the Premises or the Building to the extent necessary to restore
the Premises and the Building to the same or better condition as the same were
in immediately prior to such taking, and the balance, if any, shall be payable
to

                                    Page 11
<PAGE>

Landlord. In that event, an equitable amount of the rent otherwise payable under
this lease shall be abated until the Premises are so restored, considering all
relevant factors, including, but not limited to, the limitations to Tenant's use
of the Premises resulting from the taking and the amount of the damages and
compensation paid to Landlord which is not reinvested in the Premises or the
Building. If this lease is terminated upon any such taking as described in the
preceding paragraph, then all compensation or damages awarded for such taking
shall belong to the Landlord.

         For the purposes in this Section 13, any negotiated sale to a public or
quasi-public authority under threat of condemnation shall be deemed to
constitute a taking by such public or quasi-public authority under the power of
eminent domain. Tenant shall have the right to participate with Landlord on an
equal basis in the negotiations with any public or quasi-public authority.

         Section 14 MORTGAGE BY LANDLORD. Subject to the last sentence of this
Section14, this lease and Tenant's rights under this lease shall be subject and
subordinate to the First Mortgage (as defined in Section3) and to any subsequent
first mortgage granted by Landlord upon the Premises either before or after the
date of this lease and delivered as security for any bona fide loan made to
Landlord. Tenant shall execute, acknowledge, or verify and deliver any and all
instruments that may be reasonably requested by such mortgagee from time to time
to permit or expedite disbursement to Landlord or such other person of the
proceeds of such mortgage loan; provided that Tenant shall have no liability
whatsoever with respect to any such mortgage loan. Prior to the date of this
lease, Landlord has procured from the holder of the First Mortgage, and Landlord
shall procure from any future mortgagee of any mortgage on the Premises, a
non-disturbance agreement providing, in form and content satisfactory to Tenant,
that Tenant's rights under this lease shall not be disturbed by any such
mortgagee or any purchaser at foreclosure in the event of a default

                                    Page 12
<PAGE>

by Landlord under such mortgage or otherwise so long as Tenant is in compliance
with the terms of this lease.

         Section 15 DEFAULT.

                  (a) TENANT DEFAULTS. Each of the following shall be deemed an
event of default by Tenant under this lease:

                           (i)   Failure by Tenant to make any payment of rent
                  to Landlord when due and failure to cure such nonpayment
                  within ten (10) days after Landlord gives Tenant to do so;

                           (ii)  Failure by Tenant to make any other payment or
                  perform or observe any other obligation or condition to be
                  performed or observed by Tenant under this lease within thirty
                  (30) days after Landlord gives Tenant notice to do so or, if
                  because of the nature of such default it cannot reasonable be
                  corrected within such thirty (30) day period, failure by
                  Tenant to commence correction within such thirty (30) day
                  period and thereafter to expeditiously and continuously
                  prosecute the correction to completion;

                           (iii) Tenant's interest created by this lease is
                  taken in execution or other process of law; or

                           (iv)  Tenant or any entity which has guaranteed the
                  obligations of Tenant under the lease (a) is insolvent, is
                  adjudicated bankrupt, or seeks any relief as a debtor by any
                  bankruptcy proceeding pursuant to the provisions of any state
                  or federal law; (b) has any receiver or trustee of its
                  property appointed by reason of insolvency or inability to pay
                  debts; or (c) makes or permits an assignment of its property
                  for the benefit of creditors.

                                    Page 13
<PAGE>

         Immediately upon the occurrence of an event of default or at any time
thereafter, unless such default has been cured by Tenant or waived by Landlord,
Landlord may at its option elect either to: (A) continue this lease in full
force and effect notwithstanding the occurrence of such event of default, or (B)
terminate this lease, in which event all rights and interests of Tenant in and
to the Premises and this lease shall terminate and Landlord shall be entitled
immediately to re-enter and re-lease the Premises at the best possible rent
obtainable, but Tenant shall remain liable for the amount by which the rent
payable by Tenant under this lease exceeds the rent received upon such
re-letting, if any. Any and all monthly deficiencies in the rent so payable by
Tenant shall be paid monthly on the date required for payment of rent under
Section3. The remedies provided herein shall be without prejudice to any other
remedies which Landlord may have for the recovery of the arrears of rent or for
damages for the Tenant's breach of this lease.

                  (b) LANDLORD DEFAULTS. Failure by Landlord to make any payment
or perform or observe any other obligation or condition to be performed or
observed by Landlord under this lease within thirty (30) days after Tenant gives
Landlord notice to do so (or such shorter time as may be appropriate, such as
for a necessary repair under Section10 above) or, if because of the nature of
such default it cannot reasonably be corrected within such thirty (30) day (or
shorter) period, failure by Landlord to commence correction within such thirty
(30) day or shorter period and thereafter to expeditiously and continuously
prosecute the correction to completion shall be deemed an event of default by
Landlord under this lease.

         Immediately upon the occurrence of an event of default or at any time
thereafter, unless such default has been cured by Landlord or waived by Tenant,
Tenant may at its option elect either to: (A) continue this lease in full force
and effect notwithstanding the occurrence of such event of default, or (B)
terminate this lease, in which event Tenant shall be released from all of

                                    Page 14
<PAGE>

its obligations under this lease. The remedies provided herein shall be without
prejudice to any other remedies which Tenant may have for damages for the
Landlord's breach of this lease.

                  (c) RIGHT TO CURE DEFAULTS. If either party fails to perform
and observe all obligations and conditions to be performed and observed by it
under this lease within the time periods set forth in (a) and (b) above, then
the non-defaulting party may, but shall not be obligated to, cause the
performance and observance of the obligation or condition to which the default
relates, and any and all costs and expenses incurred by the non-defaulting party
in connection therewith, including without limitation reasonable attorneys'
fees, shall thereupon be due and payable immediately from the defaulting party,
with interest thereon at a rate equal to one percent (1%) per month (12% per
annum) from the time such costs and expenses were paid until reimbursed or, in
Tenant's case, until Tenant offsets any such amount against its rent obligation
under this lease.

         Section 16 SURRENDER AND HOLDING OVER. Tenant shall deliver and
surrender possession of the Premises to landlord upon the expiration of this
lease or its earlier termination for any reason, in substantially as good
condition and repair as the same shall be on the Commencement Date, or as the
same may be put by Landlord or Tenant, ordinary wear and tear and damage from
casualty excepted. If Tenant, or any party claiming under Tenant, remains in
possession of the Premises, or any part thereof, after expiration or any
termination of this lease, Tenant or such party claiming under Tenant shall be
deemed a Tenant from month-to-month on the same terms and conditions set forth
in this lease, subject to termination by either party upon thirty (30) days'
prior written notice to the other party.

                                    Page 15
<PAGE>

         Section 17 MEMORANDUM OF LEASE. Upon request of either party, this
lease or a memorandum of this lease shall be recorded for the purpose of giving
public notice of the rights and obligations of Landlord and Tenant under this
lease.

         Section 18 ASSIGNMENT AND SUBLEASE. Tenant shall have the right, from
time to time, to assign its rights under this lease or sublet all or any portion
of the Premises to any person or organization selected by Tenant, upon such
terms and conditions as may be agreed upon between Tenant and such assignee or
sublessee, provided that: (a) Landlord shall have given its consent to such
assignment or sublease, which consent shall not be unreasonably withheld or
delayed: provided that Landlord's consent shall not be required for any
assignment or sublease by Tenant to Tenant's parent company, subsidiary or any
entity of which Tenant or Tenant's parent company, subsidiary or any entity of
which Tenant or Tenant's parent company owns more than fifty percent (50%) of
the voting interests thereof: (b) no such assignment or sublease shall excuse or
otherwise affect any liability of Tenant under this lease, and Tenant shall
remain fully liable to perform and observe all obligations and conditions to be
performed and observed by Tenant under this lease; and (c) the term of any such
sublease shall not exceed the then remaining term of this lease.

         Landlord may assign its rights and obligations under this lease at any
time during the term of this lease, and after any such assignment shall not be
liable for any obligations of Landlord under this lease, provided that any such
assignment shall be subject to this lease and all of Tenant's rights hereunder
and provided further that Landlord's assignee assumes in writing all of
Landlord's obligations under this lease. Tenant shall attorn to any assignee of
Landlord which so assumes Landlord's obligations.

                                    Page 16
<PAGE>

         Section 19 NON-WAIVER. No failure by either party to enforce its rights
or seek its remedies upon any default shall affect or constitute a waiver of
such party's right to enforce that right, or seek that remedy with respect to
that default or any prior or subsequent default.

         Section 20 NOTICES. Any notice, consent, or other communication
required or desired to be given to either party under this lease shall be in
writing and shall be deemed given when delivered personally to that party's
address set forth at the beginning of this lease (in the case of Tenant a copy
of which shall be sent to ADS Alliance Data Systems, Attention: John Clyne,
17655 Waterview Parkway, Dallas, TX 75252) or when deposited in the United
States mail, first class, postage prepaid, addressed to that party at that same
address or, in either case, at such other address as that party may theretofore
have designated in notice to the party giving notice.

         Section 21 ESTOPPEL CERTIFICATE. Either party to this lease shall from
time to time during the term of this lease, promptly after request of the other
party, execute and deliver to the other party a statement certifying that this
lease is in full force and effect, the date through which the rentals and other
charges hereunder have been paid, and any other factual matter reasonably
requested by the other party.

         Section 22 ADDITIONAL WARRANTIES. Landlord represents and warrants to
Tenant that: (a) Landlord has good and marketable fee simple title to the
Premises except for the permitted exception in Attachment A; (b) Landlord has
unrestricted capacity, power, and right to enter into and perform this lease in
accordance with its provisions without joinder or consent of anyone else; (c)
the Premises are not situated within the one-hundred (100) year floodplain; (d)
Tenant shall be entitled to lawfully, peaceably, and quietly hold, occupy, and
enjoy the Premises during the term of this lease without hindrance or
molestation from Landlord or any person or organization claiming any legal or
equitable interest or rights in or to the Premises; (e) the

                                    Page 17
<PAGE>

Building and all fixtures and systems therein are in good and operable condition
and were constructed in compliance with all applicable laws, ordinances, codes,
and regulations (including without limitation the Americans with Disabilities
Act); and (f) the Premises are zoned under a classification which permits
Tenant's intended use thereof without any license, permits, or variances, except
for any required occupancy permit which will be obtained upon completion of the
Improvements.

         Section 23 SEVERABILITY. The intention of the parties to this lease is
to comply fully with all laws governing leases, and this lease shall be
construed consistently with all such laws to the extent possible. If and to the
extent that any court of competent jurisdiction is unable to so construe part or
all of any provision of this lease, and holds part or all of that provision to
be invalid, such invalidity shall not affect the balance of that provision or
the remaining provisions of this lease, which shall remain in full force and
effect.

         Section 24 GOVERNING LAW. The Premises is located in the State of Ohio
and it is the intention of the parties to this lease that all questions
concerning the intention, validity, or meaning of this lease or relating to the
rights and obligations of the parties with respect to performance under this
lease shall be construed and resolved according to the laws of the State of
Ohio.

         Section 25 NO THIRD PARTY BENEFIT. This lease is intended for the
exclusive benefit of the parties to this lease and their respective successors
and permitted assigns, and nothing contained in this lease shall be construed as
creating any right or benefit in or to any third party.

         Section 26 CAPTIONS. The captions of the various sections of this lease
are not part of the context of this lease, but are only labels to assist in
locating those sections, and shall be ignored to construing this lease.

                                    Page 18
<PAGE>

         Section 27 EXHIBITS. Each exhibit and addendum, if any, referred to in
this lease hereby is incorporated in this lease by reference. All obligations of
any party under any such exhibit or addendum shall be considered an obligation
under this lease.

         Section 28 GENDERS AND NUMBERS. When permitted by the context, each
pronoun used in this lease includes the same pronoun in other genders or
numbers, and each noun used in this lease includes the same noun in other
numbers.

         Section 29 COMPLETE AGREEMENT. This document (including each exhibit or
addendum, in any, referred to in this document) contains the entire agreement
between the parties and supersedes all prior or contemporaneous discussions,
negotiations, representations, or agreements relating to the subject matter of
this lease. No change to this lease shall be made or be binding on any party
unless made in writing and signed by each party to this lease.

         Section 30 SUCCESSORS. This lease shall be binding upon, inure to the
benefit of, and be enforceable by and against the respective successors and
permitted assigns of each party to this lease.

         Section 31 INDEMNIFICATION.

                  (a) Tenant, shall assume, pay and at all time indemnify,
protect and save Landlord harmless from any and all loss, liability, damage and
expense for injuries to person (including death) or property of others arising
or resulting from the use or occupancy by Tenant of the Premises or resulting
from any tortious or negligent act or default of Tenant, its employees, agents,
or invitees on, or in said Premises, together with all costs and expenses
(including reasonable legal fees) incurred with respect to any such claim,
demand or legal proceeding brought against Landlord

                                    Page 19
<PAGE>

                  (b) Landlord shall assume, pay and at all times indemnify,
protect and save Tenant harmless from any and all loss, liability, damage and
expense for injuries to person (including death) or property of others arising
or resulting from any tortious or negligent act or default of Landlord, its
employees or agents, together with all costs and expenses (including reasonable
legal fees) incurred with respect to any such claim, demand or legal proceeding
brought against Tenant.

         Section 32 MUTUAL INDEMNIFICATION. Each party shall indemnify the other
party against any and all losses, damages, liabilities, or claims arising
directly or indirectly out of: (a) any failure of any representation or warranty
of such party to be correct and complete when made or any failure by such party
to fully perform and observe all obligations and conditions to be performed or
observed by such party under this lease, whether any such failure is innocent,
negligent, or intentional; and (b) any and all costs and expenses (including
reasonable legal fees) relating to any of the matter set forth in subparagraph
(a), above. All rights and remedies under this section are cumulative and in
addition to all other rights or remedies under this lease or any applicable
laws.

         Section 33 BROKERAGE FEE. Landlord shall pay all real estate or leasing
commissions and brokerage fees payable in connection with this lease. Tenant
represents to Landlord that Tenant has not dealt with or entered into any
agreement with any persons or entities that would require the payment of any
real estate or leasing commission or brokerage fees in connection with this
lease.

         Section 34 TAX INCENTIVES. Landlord agrees that (a) it shall cooperate
and assist Tenant as reasonably requested by Tenant in Tenant's efforts to
secure the benefit of certain tax incentives, and (b) if these incentives are
challenged at any time during the term of this lease, Landlord shall

                                    Page 20
<PAGE>

use its best efforts to assist Tenant in objecting to and overcoming such
challenge. Section34 shall not require Landlord to incur expenses or costs,
including, but not limited to, professional fees or expenses, but Tenant shall
not be obligated to reimburse Landlord for any such costs or expenses which
Landlord may elect to incur.

Witnesses as to Landlord:              1815 LLC

/s/ [illegible]                        By:      /s/ [illegible]
---------------------------------         --------------------------------------
Name:  [illegible]
     ----------------------------

/s/ [illegible]                        Its:     PARTNER
---------------------------------         --------------------------------------
Name:  [illegible]
     ----------------------------

Witnesses as to Tenant:                ADS Alliance Data Systems, Inc.

/s/ [illegible]                        By:      /s/ Dwayne H. Tucker
---------------------------------         --------------------------------------

                                                Dwayne H. Tucker
                                                EVP & CAO

Name:  [illegible]                     Its:     EVP & CAO
---------------------------------         --------------------------------------

/s/ Jane Baedke
---------------------------------
Name:  Jane Baedke
     ----------------------------

STATE OF OHIO, COUNTY OF FRANKLIN, ss:

         The foregoing instrument was acknowledged before me this 8th day of
FEBRUARY, 2001, by MIKE NASH the PARTNER of 1815 LLC, a LIMITED LIABILITY CO, on
behalf of the 1815 LLC.

                                    Page 21
<PAGE>

                                       /s/ Bonnie S. Bendure
                                       -----------------------------------------
                                       Notary Public

STATE OF TEXAS, COUNTY OF DALLAS, ss:

         The foregoing instrument was acknowledged before me this 6th day of
FEBRUARY, 2001, by DWAYNE H. TUCKER the EVP & CAO of ADS Alliance Data Sytems,
Inc., a Delaware corporation, on behalf of the Corporation.

                                       /s/ Teresa C. Johnson
                                       -----------------------------------------
                                       Notary Public

                                    Page 22

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