Document:

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                          1998 STOCK COMPENSATION PLAN

                                       OF

                           RAMPART CAPITAL CORPORATION

                              (A TEXAS CORPORATION)

                              REVISED JUNE 24, 1999

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                                TABLE OF CONTENTS

                          1998 STOCK COMPENSATION PLAN
                                       OF
                           RAMPART CAPITAL CORPORATION

<TABLE>
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SECTION                         SUBJECT                                                                 PAGE
<S>          <C>                                                                                        <C>
   1.        Purpose of Plan   ...........................................................................1

   2.        Stock Subject to the Plan....................................................................1

   3.        Administration of the Plan...................................................................1

             (a)      General  ...........................................................................1

             (b)      Changes in Law Applicable...........................................................2

   4.        Types of Awards Under the Plan...............................................................2

   5.        Persons to Whom Options Shall Be Granted.....................................................2

             (a)      Nonqualified Options................................................................2

             (b)      Incentive Options...................................................................2

   6.        Factors to Be Considered in Granting Options.................................................3

   7.        Time of Granting Option......................................................................3

   8.        Terms and Conditions of Options..............................................................3

             (a)      Number of Shares....................................................................3

             (b)      Type of Option......................................................................3

             (c)      Option Period.......................................................................3

                      (1)      General....................................................................3

                      (2)      Termination of Employment..................................................3

                      (3)      Cessation of Service as Director or Advisor................................4

                      (4)      Disability.................................................................4

                      (5)      Death......................................................................4

                      (6)      Acceleration and Exercise Upon Change of Control...........................4

             (d)      Option Prices.......................................................................5

                                      (1)

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                      (1)      Nonqualified Options.......................................................5

                      (2)      Incentive Options..........................................................5

                      (3)      Determination of Fair Market Value.........................................5

             (e)      Exercise of Options.................................................................6

             (f)      Non-transferability of Options......................................................6

             (g)      Limitations on 10% Shareholders.....................................................6

             (h)      Limits on Vesting of Incentive Options..............................................6

             (i)      Compliance with Securities Laws.....................................................6

             (j)      Additional Provisions...............................................................7

   9.        Medium and Time of Payment...................................................................7

   10.       Alternate Stock Appreciation Rights..........................................................8

             (a)      Award of Alternate Stock Rights.....................................................8

             (b)      Alternate Stock Rights Agreement....................................................8

             (c)      Exercise ...........................................................................8

             (d)      Amount of Payment...................................................................8

             (e)      Form of Payment.....................................................................8

             (f)      Termination of SAR .................................................................8

             (g)      Effect of Exercise of SAR...........................................................9

             (h)      Effect of Exercise of Related Option................................................9

             (i)      Non-transferability of SAR..........................................................9

   11.       Rights as a Shareholder......................................................................9

   12.       Optionee's Agreement to Serve................................................................10

   13.       Adjustments on Changes in Capitalization.....................................................10

             (a)      Changes in Capitalization...........................................................10

             (b)      Reorganization, Dissolution or Liquidation..........................................10

             (c)      Change in Par Value.................................................................10

             (d)      Notice of Adjustments...............................................................10

             (e)      Effect Upon Holder of Option........................................................11

             (f)      Right of Company to Make Adjustments................................................11

   14.       Investment Purpose...........................................................................11

   15.       No Obligation to Exercise Option or SAR......................................................12

   16.       Modification, Extension, and Renewal of Options..............................................12

   17.       Effective Date of the Plan...................................................................12

                                      (2)

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   18.       Termination of the Plan......................................................................12

   19.       Amendment of the Plan........................................................................12

   20.       Withholding..................................................................................12

   21.       Indemnification of Committee.................................................................12

   22.       Application of Funds.........................................................................13

   23.       Governing Law................................................................................13

</TABLE>

                                      (3)

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                          1998 STOCK COMPENSATION PLAN

                                       OF

                           RAMPART CAPITAL CORPORATION

         1. PURPOSE OF PLAN. This 1998 Stock Compensation Plan ("Plan") is
intended to encourage ownership of the common stock of RAMPART CAPITAL
CORPORATION ("Company") by certain officers, directors, employees and
advisors of the Company or any Subsidiary or Subsidiaries of the Company (as
hereinafter defined) in order to provide additional incentive for such
persons to promote the success and the business of the Company or its
Subsidiaries and to encourage them to remain in the employ of the Company or
its Subsidiaries by providing such persons an opportunity to benefit from any
appreciation of the common stock of the Company through the issuance of stock
options and related stock appreciation rights to such persons in accordance
with the terms of the Plan. It is further intended that options granted
pursuant to this Plan shall constitute either incentive stock options
("Incentive Options") within the meaning of Section 422 (formerly Section
422A) of the Internal Revenue Code of 1986, as amended ("Code"), or options
which do not constitute Incentive Options ("Nonqualified Options") as
determined by the Committee (as hereinafter defined) at the time of issuance
of such options. Incentive Options, Nonqualified Options and Reload Options
(as defined in Section 11 hereof) are herein sometimes referred to
collectively as "Options". As used herein, the term Subsidiary or
Subsidiaries shall mean any corporation (other than the employer corporation)
in an unbroken chain of corporations beginning with the employer corporation
if, at the time of granting of the Option, each of the corporations other
than the last corporation in the unbroken chain owns stock possessing fifty
percent (50%) or more of the total combined voting power of all classes of
stock in one of the other corporations in such chain.

         2. STOCK SUBJECT TO THE PLAN. Subject to adjustment as provided in
Section 14 hereof, there will be reserved for the use upon the exercise of
Options to be granted from time to time under the Plan, an aggregate of three
hundred and seventy-five thousand (375,000) shares of the common stock, $.01
par value, of the Company ("Common Stock"), which shares in whole or in part
shall be authorized, but unissued, shares of the Common Stock or issued
shares of Common Stock which shall have been reacquired by the Company as
determined from time to time by the Board of Directors of the Company ("Board
of Directors"). To determine the number of shares of Common Stock available
at any time for the granting of Options under the Plan, there shall be
deducted from the total number of reserved shares of Common Stock, the number
of shares of Common Stock in respect of which Options have been granted
pursuant to the Plan which remain outstanding or which have been exercised.
If and to the extent that any Option to purchase reserved shares shall not be
exercised by the optionee for any reason or if such Option to purchase shall
terminate as provided herein, such shares which have not been so purchased
hereunder shall again become available for the purposes of the Plan unless
the Plan shall have been terminated, but such unpurchased shares shall not be
deemed to increase the aggregate number of shares specified above to be
reserved for purposes of the Plan (subject to adjustment as provided in
Section 14 hereof).

         3. ADMINISTRATION OF THE PLAN.

                  (a) GENERAL. The Plan shall be administered by a Compensation
         Committee ("Committee") appointed by the Board of Directors, which
         Committee shall consist of not less than two (2) members of the Board
         of Directors each of whom shall be (i) a "non-employee director" within
         the meaning of Rule 16b-3 promulgated under the Exchange Act and (ii)
         an "outside director" within the meaning of Section 162(m) of the Code
         and the regulations promulgated thereunder. Notwithstanding the
         preceding sentence, the term "Committee" as used in the Plan shall
         refer to the full Board if (i) no committee of the Board has been
         appointed to administer the Plan or there is not a committee of two
         members that meet the above qualifications or (ii) even if a committee
         has been so appointed, with respect to the grant of any Options to
         Outside Directors, and in either case, the full Board shall have all
         the rights, powers and responsibilities of the Committee set forth
         hereunder. For purposes of this Plan, "Outside Director" shall mean any
         director of the Company who is not an employee of the Company or any
         Subsidiary. The Board of Directors may from time to time appoint
         members of the Committee in substitution for or in addition to members
         previously appointed

1998 STOCK COMPENSATION PLAN - Page 1

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         and may fill vacancies, however caused, in the Committee. If the
         Board of Directors does not designate a Chairman of the Committee,
         the Committee shall select one of its members as its Chairman. The
         Committee shall hold its meetings at such times and places as it
         shall deem advisable. A majority of its members shall constitute a
         quorum. Any action of the Committee shall be taken by a majority vote
         of its members at a meeting at which a quorum is present.
         Notwithstanding the preceding, any action of the Committee may be
         taken without a meeting by a written consent signed by all of the
         members, and any action so taken shall be deemed fully as effective
         as if it had been taken by a vote of the members present in person at
         the meeting duly called and held. The Committee may appoint a
         Secretary, shall keep minutes of its meetings, and shall make such
         rules and regulations for the conduct of its business as it shall
         deem advisable.

                  The Committee shall have the sole authority and power, subject
         to the express provisions and limitations of the Plan, to construe the
         Plan and option agreements granted hereunder, and to adopt, prescribe,
         amend, and rescind rules and regulations relating to the Plan, and to
         make all determinations necessary or advisable for administering the
         Plan, including, but not limited to, (i) who shall be granted Options
         under the Plan, (ii) the term of each Option, (iii) the number of
         shares covered by such Option, (iv) whether the Option shall constitute
         an Incentive Option or a Nonqualified Option or a Reload Option, (v)
         the exercise price for the purchase of the shares of the Common Stock
         covered by the Option, (vi) the period during which the Option may be
         exercised, (vii) whether the right to purchase the number of shares
         covered by the Option shall be fully vested on issuance of the Option
         so that such shares may be purchased in full at one time or whether the
         right to purchase such shares shall become vested over a period of time
         so that such shares may only be purchased in installments, and (viii)
         the time or times at which Options shall be granted. The Committee's
         determinations under the Plan, including the above enumerated
         determinations, need not be uniform and may be made by it selectively
         among the persons who receive, or are eligible to receive, Options
         under the Plan, whether or not such persons are similarly situated.

                  The interpretation by the Committee of any provision of the
         Plan or of any option agreement entered into hereunder with respect to
         any Incentive Option shall be in accordance with Section 422 of the
         Code and the regulations issued thereunder, as such section or
         regulations may be amended from time to time, in order that the rights
         granted hereunder and under said option agreements shall constitute
         "Incentive Stock Options" within the meaning of such section. The
         interpretation and construction by the Committee of any provision of
         the Plan or of any Option granted hereunder shall be final and
         conclusive, unless otherwise determined by the Board of Directors. No
         member of the Board of Directors or the Committee shall be liable for
         any action or determination made in good faith with respect to the Plan
         or any Option granted under it. Upon issuing an Option under the Plan,
         the Committee shall report to the Board of Directors the name of the
         person granted the Option, whether the Option is an Incentive Option or
         a Nonqualified Option, the number of shares of Common Stock covered by
         the Option, and the terms and conditions of such Option.

                  (b) CHANGES IN LAW APPLICABLE. If the laws relating to
         Incentive Options or Nonqualified Options are changed, altered or
         amended during the term of the Plan, the Board of Directors shall have
         full authority and power to alter or amend the Plan with respect to
         Incentive Options or Nonqualified Options, respectively, to conform to
         such changes in the law without the necessity of obtaining further
         shareholder approval, unless the changes require such approval.

         4. TYPES OF AWARDS UNDER THE PLAN. Awards under the Plan may be in
the form of either Options, alternate stock appreciation rights (as described
in Section 10 hereof), or a combination thereof.

         5.       PERSONS TO WHOM OPTIONS SHALL BE GRANTED.

                  (a) NONQUALIFIED OPTIONS. Nonqualified Options shall be
granted only to officers, directors, employees and advisors of the Company or
a Subsidiary who, in the judgment of the Committee, are responsible for or
contribute to the management or success of the Company or a Subsidiary and
who, at the time of the granting of the Nonqualified Options, are either
officers, directors, employees or advisors of the Company or a Subsidiary.

                  (b) INCENTIVE OPTIONS. Incentive Options shall be granted
only to employees of the Company or a Subsidiary who, in the judgment of the
Committee, are responsible for or contribute to the management or success of
the Company or a Subsidiary and who, at the time of the granting of the
Incentive Option are either an employee of

1998 STOCK COMPENSATION PLAN - Page 2

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the Company or a Subsidiary. Subject to the provisions of Section 8(g)
hereof, no individual shall be granted an Incentive Option who, immediately
before such Incentive Option was granted, would own more than ten percent
(10%) of the total combined voting power or value of all classes of stock of
the Company ("10% Shareholder").

         6. FACTORS TO BE CONSIDERED IN GRANTING OPTIONS. In making any
determination as to persons to whom Options shall be granted and as to the
number of shares to be covered by such Options, the Committee shall take into
account the duties and responsibilities of the respective officers,
directors, employees, or advisors, their current and potential contributions
to the success of the Company or a Subsidiary, and such other factors as the
Committee shall deem relevant in connection with accomplishing the purpose of
the Plan.

         7. TIME OF GRANTING OPTIONS. Neither anything contained in the Plan
or in any resolution adopted or to be adopted by the Board of Directors or
the Shareholders of the Company or a Subsidiary nor any action taken by the
Committee shall constitute the granting of any Option. The granting of an
Option shall be effected only when a written Option Agreement acceptable in
form and substance to the Committee, subject to the terms and conditions
hereof including those set forth in Section 8 hereof, shall have been duly
executed and delivered by or on behalf of the Company and the person to whom
such Option shall be granted. No person shall have any rights under the Plan
until such time, if any, as a written Option Agreement shall have been duly
executed and delivered as set forth in this Section 7.

         8. TERMS AND CONDITIONS OF OPTIONS. All Options granted pursuant to
this Plan must be granted within ten (10) years from the date the Plan is
adopted by the Board of Directors of the Company. Each Option Agreement
governing an Option granted hereunder shall be subject to at least the
following terms and conditions, and shall contain such other terms and
conditions, not inconsistent therewith, that the Committee shall deem
appropriate:

                  (a) NUMBER OF SHARES. Each Option shall state the number of
         shares of Common Stock which it represents.

                  (b) TYPE OF OPTION. Each Option shall state whether it is
         intended to be an Incentive Option or a Nonqualified Option.

                  (c)      OPTION PERIOD.

                           (1) GENERAL. Each Option shall state the date upon
                  which it is granted. Each Option shall be exercisable in whole
                  or in part during such period as is provided under the terms
                  of the Option subject to any vesting period set forth in the
                  Option, but in no event shall an Option be exercisable either
                  in whole or in part after the expiration of ten (10) years
                  from the date of grant; provided, however, if an Incentive
                  Option is granted to a 10% Shareholder, such Incentive Option
                  shall not be exercisable more than five (5) years from the
                  date of grant thereof.

                           (2) TERMINATION OF EMPLOYMENT. Except as otherwise
                  provided in case of Disability (as hereinafter defined), death
                  or Change of Control (as hereinafter defined), no Option shall
                  be exercisable after an optionee who is an employee of the
                  Company or a Subsidiary ceases to be employed by the Company
                  or a Subsidiary as an employee; provided, however, that the
                  Committee shall have the right in its sole discretion, but not
                  the obligation, to extend the exercise period for not more
                  than three (3) months following the date of termination of
                  such optionee's employment; provided further, however, that no
                  Option shall be exercisable after the expiration of ten (10)
                  years from the date it is granted and provided further, no
                  Incentive Option granted to a 10% Shareholder shall be
                  exercisable after the expiration of five (5) years from the
                  date it is granted.

                           (3) CESSATION OF SERVICE AS DIRECTOR OR ADVISOR. In
                  the event an optionee who was a director or advisor of the
                  Company or a Subsidiary ceases to be a director or advisor of
                  the Company or a Subsidiary for any reason, other than
                  Disability or death, prior to the full exercise of the Option,
                  such optionee may exercise his Option at any time within
                  ninety (90) days after such optionee's status as a director or
                  advisor of the Company or a Subsidiary is so terminated to the
                  extent he was entitled to exercise such Option at the date
                  such optionee's status as a director or advisor of the Company
                  or a Subsidiary terminated; provided, however, that no Option
                  shall be exercisable after the expiration of ten (10) years
                  from the date it is granted.

1998 STOCK COMPENSATION PLAN - Page 3

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                           (4) DISABILITY. If an optionee's employment is
                  terminated by reason of the permanent and total Disability of
                  such optionee or if an optionee who is a director or advisor
                  of the Company or a Subsidiary ceases to serve as a director
                  or advisor by reason of the permanent and total Disability of
                  such optionee, the Committee shall have the right in its sole
                  discretion, but not the obligation, to extend the exercise
                  period for not more than one (1) year following the date of
                  termination of the optionee's employment or the date such
                  optionee ceases to be a director or advisor of the Company or
                  a Subsidiary, as the case may be, subject to the condition
                  that no Option shall be exercisable after the expiration of
                  ten (10) years from the date it is granted and subject to the
                  further condition that no Incentive Option granted to a 10%
                  Shareholder shall be exercisable after the expiration of five
                  (5) years from the date it is granted. For purposes of this
                  Plan, the term "Disability" shall mean the inability of the
                  optionee to fulfill such optionee's obligations to the Company
                  or a Subsidiary by reason of any physical or mental impairment
                  which can be expected to result in death or which has lasted
                  or can be expected to last for a continuous period of not less
                  than twelve (12) months as determined by a physician
                  acceptable to the Committee in its sole discretion.

                           (5) DEATH. If an optionee dies while in the employ of
                  the Company or a Subsidiary, or while serving as a director or
                  advisor of the Company or a Subsidiary, and shall not have
                  fully exercised Options granted pursuant to the Plan, such
                  Options may be exercised in whole or in part at any time
                  within one (1) year after the optionee's death, by the
                  executors or administrators of the optionee's estate or by any
                  person or persons who shall have acquired the Options directly
                  from the optionee by bequest or inheritance, but only to the
                  extent that the optionee was entitled to exercise such Option
                  at the date of such optionee's death, subject to the condition
                  that no Option shall be exercisable after the expiration of
                  ten (10) years from the date it is granted and subject to the
                  further condition that no Incentive Option granted to a 10%
                  Shareholder shall be exercisable after the expiration of five
                  (5) years from the date it is granted.

                           (6) ACCELERATION AND EXERCISE UPON CHANGE OF CONTROL.
                  Notwithstanding the preceding provisions of this Section 8(c),
                  if any Option granted under the Plan provides for either (a)
                  an incremental vesting period whereby such Option may only be
                  exercised in installments as such incremental vesting period
                  is satisfied or (b) a delayed vesting period whereby such
                  Option may only be exercised after the lapse of a specified
                  period of time, such as after the expiration of one (1) year,
                  such vesting period shall be accelerated upon the occurrence
                  of a Change of Control (as hereinafter defined) of the
                  Company, or a threatened Change of Control of the Company as
                  determined by the Committee, so that such Option shall
                  thereupon become exercisable immediately in part or its
                  entirety by the holder thereof, as such holder shall elect.
                  For the purposes of this Plan, a "Change of Control" shall be
                  deemed to have occurred if:

                                    (i) Any "person", including a "group" as
                           determined in accordance with Section 13(d)(3) of the
                           Securities Exchange Act of 1934 ("Exchange Act") and
                           the Rules and Regulations promulgated thereunder, is
                           or becomes, through one or a series of related
                           transactions or through one or more intermediaries,
                           the beneficial owner, directly or indirectly, of
                           securities of the Company representing 25% or more of
                           the combined voting power of the Company's then
                           outstanding securities, other than a person who is
                           such a beneficial owner on the effective date of the
                           Plan and any affiliate of such person;

                                    (ii) As a result of, or in connection with,
                           any tender offer or exchange offer, merger or other
                           business combination, sale of assets or contested
                           election, or any combination of the foregoing
                           transactions ("Transaction"), the persons who were
                           Directors of the Company before the Transaction shall
                           cease to constitute a majority of the Board of
                           Directors of the Company or any successor to the
                           Company;

                               (iii) Following the effective date of the Plan,
                           the Company is merged or consolidated with another
                           corporation and as a result of such merger or
                           consolidation less than 40% of the outstanding voting
                           securities of the surviving or resulting corporation
                           shall then be

1998 STOCK COMPENSATION PLAN - Page 4

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                           owned in the aggregate by the former stockholders
                           of the Company, other than (x) any party to such
                           merger or consolidation, or (y) any affiliates of
                           any such party;

                                    (iv) A tender offer or exchange offer is
                           made and consummated for the ownership of securities
                           of the Company representing 25% or more of the
                           combined voting power of the Company's then
                           outstanding voting securities; or

                                    (v) The Company transfers more than 50% of
                           its assets, or the last of a series of transfers
                           result in the transfer of more than 50% of the assets
                           of the Company, to another corporation that is not a
                           wholly-owned corporation of the Company. For purposes
                           of this subsection 8(c)(6)(v), the determination of
                           what constitutes more than 50% of the assets of the
                           Company shall be determined based on the sum of the
                           values attributed to (i) the Company's real property
                           as determined by an independent appraisal thereof,
                           and (ii) the net book value of all other assets of
                           the Company, each taken as of the date of the
                           Transaction involved.

                           In addition, upon a Change of Control, any Options
                  previously granted under the Plan to the extent not already
                  exercised may be exercised in whole or in part either
                  immediately or at any time during the term of the Option as
                  such holder shall elect.

                  (d)      OPTION PRICES.

                           (1) NONQUALIFIED OPTIONS. The purchase price or
                  prices of the shares of the Common Stock which shall be
                  offered to any person under the Plan and covered by a
                  Nonqualified Option shall be the price determined by the
                  Committee at the time of granting of the Nonqualified Option,
                  which price may be less than, equal to or higher than one
                  hundred percent (100%) of the fair market value of the Common
                  Stock at the time of granting the Nonqualified Option.

                           (2) INCENTIVE OPTIONS. The purchase price or prices
                  of the shares of the Common Stock which shall be offered to
                  any person under the Plan and covered by an Incentive Option
                  shall be one hundred percent (100%) of the fair market value
                  of the Common Stock at the time of granting the Incentive
                  Option or such higher purchase price as may be determined by
                  the Committee at the time of granting the Incentive Option;
                  provided, however, if an Incentive Option is granted to a 10%
                  Shareholder, the purchase price of the shares of the Common
                  Stock of the Company covered by such Incentive Option may not
                  be less than one hundred ten percent (110%) of the fair market
                  value of such shares on the day the Incentive Option is
                  granted.

                           (3) DETERMINATION OF FAIR MARKET VALUE. During such
                  time as the Common Stock of the Company is not listed upon an
                  established stock exchange, the fair market value per share
                  shall be deemed to be the closing sales price of the Common
                  Stock on the National Association of Securities Dealers
                  Automated Quotation System ("NASDAQ") on the day the Option is
                  granted, as reported by NASDAQ, if the Common Stock is so
                  quoted, and if not so quoted, the mean between dealer "bid"
                  and "ask," prices of the Common Stock in the New York
                  over-the-counter market on the day the Option is granted, as
                  reported by the National Association of Securities Dealers,
                  Inc. If the Common Stock is listed upon an established stock
                  exchange or exchanges, such fair market value shall be deemed
                  to be the highest closing price of the Common Stock on such
                  stock exchange or exchanges on the day the Option is granted
                  or, if no sale of the Common Stock of the Company shall have
                  been made on established stock exchange on such day, on the
                  next preceding day on which there was a sale of such stock. If
                  there is no market price for the Common Stock, then the Board
                  of Directors and the Committee may, after taking all relevant
                  facts into consideration, determine the fair market value of
                  the Common Stock.

                           (e) EXERCISE OF OPTIONS. To the extent that a holder
                  of an Option has a current right to exercise, the Option may
                  be exercised from time to time by written notice to the
                  Company at its principal place of business. Such notice shall
                  state the election to exercise the Option, the number of whole
                  shares in respect of which it is being exercised, shall be
                  signed by the person or persons so

1998 STOCK COMPENSATION PLAN - Page 5

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                  exercising the Option, and shall contain any investment
                  representation required by Section 8(i) hereof. Such notice
                  shall be accompanied by payment of the full purchase price
                  of such shares and by the Option Agreement evidencing the
                  Option. In addition, if the Option shall be exercised,
                  pursuant to Section 8(c)(4) or Section 8(c)(5) hereof, by
                  any person or persons other than the optionee, such notice
                  shall also be accompanied by appropriate proof of the right
                  of such person or persons to exercise the Option. The
                  Company shall deliver a certificate or certificates
                  representing such shares as soon as practicable after the
                  aforesaid notice and payment of such shares shall be
                  received. The certificate or certificates for the shares as
                  to which the Option shall have been so exercised shall be
                  registered in the name of the person or persons so exercising
                  the Option. In the event the Option shall not be exercised
                  in full, the Secretary of the Company shall endorse or cause
                  to be endorsed on the Option the number of shares which has
                  been exercised thereunder and the number of shares that
                  remain exercisable under the Option and return such Option
                  Agreement to the holder thereof.

                           (f) NON-TRANSFERABILITY OF OPTIONS. An Option granted
                  pursuant to the Plan shall be exercisable only by the optionee
                  or the optionee's court appointed guardian as set forth in
                  Section 8(c)(4) hereof during the optionee's lifetime and
                  shall not be assignable or transferable by the optionee
                  otherwise than by Will or the laws of descent and
                  distribution. An Option granted pursuant to the Plan shall not
                  be assigned, pledged or hypothecated in any way (whether by
                  operation of law or otherwise other than by Will or the laws
                  of descent and distribution) and shall not be subject to
                  execution, attachment, or similar process. Any attempted
                  transfer, assignment, pledge, hypothecation, or other
                  disposition of any Option or of any rights granted thereunder
                  contrary to the foregoing provisions of this Section 8(f), or
                  the levy of any attachment or similar process upon an Option
                  or such rights, shall be null and void.

                           (g) LIMITATIONS ON 10% SHAREHOLDERS. No Incentive
                  Option may be granted under the Plan to any 10% Shareholder
                  unless (i) such Incentive Option is granted at an option price
                  not less than one hundred ten percent (110%) of the fair
                  market value of the shares on the day the Incentive Option is
                  granted and (ii) such Incentive Option expires on a date not
                  later than five (5) years from the date the Incentive Option
                  is granted.

                           (h) LIMITS ON VESTING OF INCENTIVE OPTIONS. An
                  individual may be granted one or more Incentive Options,
                  provided that the aggregate fair market value (as determined
                  at the time such Incentive Option is granted) of the stock
                  with respect to which Incentive Options are exercisable for
                  the first time by such individual during any calendar year
                  shall not exceed $100,000. To the extent the $100,000
                  limitation in the preceding sentence is exceeded, such option
                  shall be treated as an option which is not an Incentive
                  Option.

                           (i) COMPLIANCE WITH SECURITIES LAWS. The Plan and the
                  grant and exercise of the rights to purchase shares hereunder,
                  and the Company's obligations to sell and deliver shares upon
                  the exercise of rights to purchase shares, shall be subject to
                  all applicable federal and state laws, rules and regulations,
                  and to such approvals by any regulatory or governmental agency
                  as may, in the opinion of counsel for the Company, be
                  required, and shall also be subject to all applicable rules
                  and regulations of any stock exchange upon which the Common
                  Stock of the Company may then be listed. At the time of
                  exercise of any Option, the Company may require the optionee
                  to execute any documents or take any action which may be then
                  necessary to comply with the Securities Act of 1933, as
                  amended ("Securities Act"), and the rules and regulations
                  promulgated thereunder, or any other applicable federal or
                  state laws regulating the sale and issuance of securities, and
                  the Company may, if it deems necessary, include provisions in
                  the stock option agreements to assure such compliance. The
                  Company may, from time to time, change its requirements with
                  respect to enforcing compliance with federal and state
                  securities laws, including the request for and enforcement of
                  letters of investment intent, such requirements to be
                  determined by the Company in its judgment as necessary to
                  assure compliance with said laws. Such changes may be made
                  with respect to any particular Option or stock issued upon
                  exercise thereof. Without limiting the

1998 STOCK COMPENSATION PLAN - Page 6

<PAGE>

                  generality of the foregoing, if the Common Stock issuable
                  upon exercise of an Option granted under the Plan is not
                  registered under the Securities Act, the Company at the time
                  of exercise will require that the registered owner execute
                  and deliver an investment representation agreement to the
                  Company in form acceptable to the Company and its counsel,
                  and the Company will place a legend on the certificate
                  evidencing such Common Stock restricting the transfer
                  thereof, which legend shall be substantially as follows:

                           THE SHARES OF COMMON STOCK REPRESENTED BY THIS
                           CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
                           SECURITIES ACT OF 1933, AS AMENDED, OR ANY APPLICABLE
                           STATE SECURITIES LAW BUT HAVE BEEN ACQUIRED FOR THE
                           PRIVATE INVESTMENT OF THE HOLDER HEREOF AND MAY NOT
                           BE OFFERED, SOLD OR TRANSFERRED UNTIL EITHER (i) A
                           REGISTRATION STATEMENT UNDER SUCH SECURITIES ACT OR
                           SUCH APPLICABLE STATE SECURITIES LAWS SHALL HAVE
                           BECOME EFFECTIVE WITH REGARD THERETO, OR (ii) THE
                           COMPANY SHALL HAVE RECEIVED AN OPINION OF COUNSEL
                           ACCEPTABLE TO THE COMPANY AND ITS COUNSEL THAT
                           REGISTRATION UNDER SUCH SECURITIES ACT OR SUCH
                           APPLICABLE STATE SECURITIES LAWS IS NOT REQUIRED IN
                           CONNECTION WITH SUCH PROPOSED OFFER, SALE OR
                           TRANSFER.

                           (j) ADDITIONAL PROVISIONS. The Option Agreements
                  authorized under the Plan shall contain such other provisions
                  as the Committee shall deem advisable, including, without
                  limitation, restrictions upon the exercise of the Option. Any
                  such Option Agreement with respect to an Incentive Option
                  shall contain such limitations and restrictions upon the
                  exercise of the Incentive Option as shall be necessary in
                  order that the option will be an "Incentive Stock Option" as
                  defined in Section 422 of the Code.

         9. MEDIUM AND TIME OF PAYMENT. The purchase price of the shares of
the Common Stock as to which the Option shall be exercised shall be paid in
full either (i) in cash at the time of exercise of the Option, (ii) by
tendering to the Company shares of the Company's Common Stock having a fair
market value (as of the date of receipt of such shares by the Company) equal
to the purchase price for the number of shares of Common Stock purchased, or
(iii) partly in cash and partly in shares of the Company's Common Stock
valued at fair market value as of the date of receipt of such shares by the
Company. Cash payment for the shares of the Common Stock purchased upon
exercise of the Option shall be in the form of either a cashier's check,
certified check or money order. Personal checks may be submitted, but will
not be considered as payment for the shares of the Common Stock purchased and
no certificate for such shares will be issued until the personal check clears
in normal banking channels. If a personal check is not paid upon presentment
by the Company, then the attempted exercise of the Option will be null and
void. In the event the optionee tenders shares of the Company's Common Stock
in full or partial payment for the shares being purchased pursuant to the
Option, the shares of Common Stock so tendered shall be accompanied by fully
executed stock powers endorsed in favor of the Company with the signature on
such stock power being guaranteed. If an optionee tenders shares, such
optionee assumes sole and full responsibility for the tax consequences, if
any, to such optionee arising therefrom, including the possible application
of Code Section 424(c), or its successor Code section, which negates any
nonrecognition of income rule with respect to such transferred shares, if
such transferred shares have not been held for the minimum statutory holding
period to receive preferential tax treatment.

1998 STOCK COMPENSATION PLAN - Page 7

<PAGE>

         10.      ALTERNATE STOCK APPRECIATION RIGHTS.

                  (a) AWARD OF ALTERNATE STOCK RIGHTS. Concurrently with or
         subsequent to the award of any Option to purchase one or more shares of
         Common Stock, the Committee may in its sole discretion, subject to the
         provisions of the Plan and such other terms and conditions as the
         Committee may prescribe, award to the optionee with respect to each
         share of Common Stock covered by an Option ("Related Option"), a
         related alternate stock appreciation right ("SAR"), permitting the
         optionee to be paid the appreciation on the Related Option in lieu of
         exercising the Related Option. A SAR granted with respect to an
         Incentive Option must be granted together with the Related Option. A
         SAR granted with respect to a Nonqualified Option may be granted
         together with or subsequent to the grant of such Related Option.

                  (b) ALTERNATE STOCK RIGHTS AGREEMENT. Each SAR shall be on
         such terms and conditions not inconsistent with this Plan as the
         Committee may determine and shall be evidenced by a written agreement
         executed by the Company and the optionee receiving the Related Option.

                  (c) EXERCISE. An SAR may be exercised only if and to the
         extent that its Related Option is eligible to be exercised on the date
         of exercise of the SAR. To the extent that a holder of a SAR has a
         current right to exercise, the SAR may be exercised from time to time
         by written notice to the Company at its principal place of business.
         Such notice shall state the election to exercise the SAR, the number of
         shares in respect of which it is being exercised, shall be signed by
         the person so exercising the SAR and shall be accompanied by the
         agreement evidencing the SAR and the Related Option. In the event the
         SAR shall not be exercised in full, the Secretary of the Company shall
         endorse or cause to be endorsed on the SAR and the Related Option the
         number of shares which have been exercised thereunder and the number of
         shares that remain exercisable under the SAR and the Related Option and
         return such SAR and Related Option to the holder thereof.

                  (d) AMOUNT OF PAYMENT. The amount of payment to which an
         optionee shall be entitled upon the exercise of each SAR shall be equal
         to 100% of the amount, if any, by which the fair market value of a
         share of Common Stock on the exercise date exceeds the fair market
         value of a share of Common Stock on the date the Option related to said
         SAR was granted or became effective, as the case may be; provided,
         however, the Company may, in its sole discretion, withhold from such
         cash payment any amount necessary to satisfy the Company's obligation
         for withholding taxes with respect to such payment. For this purpose,
         the fair market value of a share of Common Stock shall be determined as
         set forth in Section 8(d) hereof.

                  (e) FORM OF PAYMENT. The amount payable by the Company to an
         optionee upon exercise of a SAR may be paid in shares of Common Stock,
         cash or a combination thereof. The number of shares of Common Stock to
         be paid to an optionee upon such optionee's exercise of SAR shall be
         determined by dividing the amount of payment determined pursuant to
         Section 10(d) hereof by the fair market value of a share of Common
         Stock on the exercise date of such SAR. For purposes of this Plan, the
         exercise date of a SAR shall be the date the Company receives written
         notification from the optionee of the exercise of the SAR in accordance
         with the provisions of Section 10(c) hereof. As soon as practicable
         after exercise, the Company shall either deliver to the optionee the
         amount of cash due such optionee or a certificate or certificates for
         such shares of Common Stock. All such shares shall be issued with the
         rights and restrictions specified herein.

                  (f) TERMINATION OF SAR. Except as otherwise provided in case
         of Disability (as defined in Section 8(c)(4) hereof) or death, no SAR
         shall be exercisable after an optionee ceases to be an employee,
         director or advisor of the Company or Subsidiary; provided, however,
         that the Committee shall have the right in its sole discretion, but not
         the obligation, to extend the exercise period for not more than three
         (3) months following the date such optionee ceases to be an employee,
         director or advisor of the Company or a Subsidiary; provided further,
         that the Committee may not extend the period during which an optionee
         may exercise a SAR for a period greater than the period during which an
         optionee may exercise the Related Option. If an optionee's position as
         an employee, director or advisor of the Company is terminated due to
         the Disability or death of such optionee, the Committee shall have the
         right, in its sole discretion, but not the obligation, to extend the
         exercise period applicable to the SAR for a period not to exceed the
         period in which

1998 STOCK COMPENSATION PLAN - Page 8

<PAGE>

         the optionee may exercise the Option related to said SAR as set forth
         in Sections 8(c)(4) and 8(c)(5) hereof, respectively.

                  (g) EFFECT OF EXERCISE OF SAR. The exercise of any SAR shall
         cancel and terminate the right to purchase an equal number of shares
         covered by the Related Option.

                  (h) EFFECT OF EXERCISE OF RELATED OPTION. Upon the exercise or
         termination of any Related Option, the SAR with respect to such Related
         Option shall terminate to the extent of the number of shares of Common
         Stock as to which the Related Option was exercised or terminated.

                  (i) NON-TRANSFERABILITY OF SAR. A SAR granted pursuant to this
         Plan shall be exercisable only by the optionee or the optionee's court
         appointed guardian as set forth in Section 8(c)(4) hereof during the
         optionee's lifetime and, subject to the provisions of Section 10(f)
         hereof, shall not be assignable or transferable by the optionee. A SAR
         granted pursuant to the Plan shall not be assigned, pledged or
         hypothecated in any way (whether by operation of law or otherwise) and
         shall not be subject to execution, attachment, or similar process. Any
         attempted transfer, assignment, pledge, hypothecation, or other
         disposition of any SAR or of any rights granted thereunder contrary to
         the foregoing provisions of this Section 10(i), or the levy of any
         attachment or similar process upon a SAR or such rights, shall be null
         and void.

         11. RIGHTS AS A SHAREHOLDER. The holder of an Option or a SAR shall
have no rights as a shareholder with respect to the shares covered by the
Option or SAR until the due exercise of the Option, Related Option, or SAR
and the date of issuance of one or more stock certificates to such holder for
such shares. No adjustment shall be made for dividends (ordinary or
extraordinary, whether in cash, securities or other property) or
distributions or other rights for which the record date is prior to the date
such stock certificate is issued, except as provided in Section 14 hereof.

         12. OPTIONEE'S AGREEMENT TO SERVE. Each employee receiving an Option
shall, as one of the terms of the Option Agreement agree that such employee
will remain in the employ of the Company or Subsidiary for a period of at
least one (1) year from the date on which the Option shall be granted to such
employee; and that such employee will, during such employment, devote such
employee's entire time, energy, and skill to the service of the Company or a
Subsidiary as may be required by the management thereof, subject to
vacations, sick leaves, and military absences. Such employment, subject to
the provisions of any written contract between the Company or a Subsidiary
and such employee, shall be at the pleasure of the Board of Directors of the
Company or a Subsidiary, and at such compensation as the Company or a
Subsidiary shall reasonably determine. Any termination of such employee's
employment during the period which the employee has agreed pursuant to the
foregoing provisions of this Section 13 to remain in employment that is
either for cause or voluntary on the part of the employee shall be deemed a
violation by the employee of such employee's agreement. In the event of such
violation, any Option or Options held by such employee, to the extent not
theretofore exercised, shall forthwith terminate, unless otherwise determined
by the Committee. Notwithstanding the preceding, neither the action of the
Company in establishing the Plan nor any action taken by the Company, a
Subsidiary or the Committee under the provisions hereof shall be construed as
granting the optionee the right to be retained in the employ of the Company
or a Subsidiary, or to limit or restrict the right of the Company or a
Subsidiary, as applicable, to terminate the employment of any employee of the
Company or a Subsidiary, with or without cause.

         13.      ADJUSTMENTS ON CHANGES IN CAPITALIZATION.

                  (a) CHANGES IN CAPITALIZATION. Subject to any required action
         by the Shareholders of the Company, the number of shares of Common
         Stock covered by the Plan, the number of shares of Common Stock covered
         by each outstanding Option, and the exercise price per share thereof
         specified in each such Option, shall be proportionately adjusted for
         any increase or decrease in the number of issued shares of Common Stock
         of the Company resulting from a subdivision or consolidation of shares
         or the payment of a stock dividend (but only on the Common Stock) or
         any other increase or decrease in the number of such shares effected
         without receipt of consideration by the Company after the date the
         Option is granted, so that upon exercise of the Option, the optionee
         shall receive the same number of shares the optionee would have
         received had the optionee been the holder of all shares subject to such
         optionee's outstanding Option immediately before the effective date of
         such change in the number of issued shares of the Common Stock of the
         Company.

1998 STOCK COMPENSATION PLAN - Page 9

<PAGE>

                  (b) REORGANIZATION, DISSOLUTION OR LIQUIDATION. Subject to any
         required action by the Shareholders of the Company, if the Company
         shall be the surviving corporation in any merger or consolidation, each
         outstanding Option shall pertain to and apply to the securities to
         which a holder of the number of shares of Common Stock subject to the
         Option would have been entitled. A dissolution or liquidation of the
         Company or a merger or consolidation in which the Company is not the
         surviving corporation, shall cause each outstanding Option to terminate
         as of a date to be fixed by the Committee (which date shall be as of or
         prior to the effective date of any such dissolution or liquidation or
         merger or consolidation); provided, that not less than thirty (30) days
         written notice of the date so fixed as such termination date shall be
         given to each optionee, and each optionee shall, in such event, have
         the right, during the said period of thirty (30) days preceding such
         termination date, to exercise such optionee's Option in whole or in
         part in the manner herein set forth.

                  (c) CHANGE IN PAR VALUE. In the event of a change in the
         Common Stock of the Company as presently constituted, which change is
         limited to a change of all of its authorized shares with par value into
         the same number of shares with a different par value or without par
         value, the shares resulting from any change shall be deemed to be the
         Common Stock within the meaning of the Plan.

                  (d) NOTICE OF ADJUSTMENTS. To the extent that the adjustments
         set forth in the foregoing paragraphs of this Section 14 relate to
         stock or securities of the Company, such adjustments, if any, shall be
         made by the Committee, whose determination in that respect shall be
         final, binding and conclusive, provided that each Incentive Option
         granted pursuant to this Plan shall not be adjusted in a manner that
         causes the Incentive Option to fail to continue to qualify as an
         "Incentive Stock Option" within the meaning of Section 422 of the Code.
         The Company shall give timely notice of any adjustments made to each
         holder of an Option under this Plan and such adjustments shall be
         effective and binding on the optionee.

                  (e) EFFECT UPON HOLDER OF OPTION. Except as hereinbefore
         expressly provided in this Section 14, the holder of an Option shall
         have no rights by reason of any subdivision or consolidation of shares
         of stock of any class or the payment of any stock dividend or any other
         increase or decrease in the number of shares of stock of any class by
         reason of any dissolution, liquidation, merger, reorganization, or
         consolidation, or spin-off of assets or stock of another corporation,
         and any issue by the Company of shares of stock of any class, or
         securities convertible into shares of stock of any class, shall not
         affect, and no adjustment by reason thereof shall be made with respect
         to, the number or price of shares of Common Stock subject to the
         Option. Without limiting the generality of the foregoing, no adjustment
         shall be made with respect to the number or price of shares subject to
         any Option granted hereunder upon the occurrence of any of the
         following events:

                           (1) The grant or exercise of any other options which
                  may be granted or exercised under any qualified or
                  nonqualified stock option plan or under any other employee
                  benefit plan of the Company whether or not such options were
                  outstanding on the date of grant of the Option or thereafter
                  granted;

                           (2) The sale of any shares of Common Stock in the
                  Company's initial or any subsequent public offering,
                  including, without limitation, shares sold upon the exercise
                  of any overallotment option granted to the underwriter in
                  connection with such offering;

                           (3) The issuance, sale or exercise of any warrants to
                  purchase shares of Common Stock whether or not such warrants
                  were outstanding on the date of grant of the Option or
                  thereafter issued;

                           (4) The issuance or sale of rights, promissory notes
                  or other securities convertible into shares of Common Stock in
                  accordance with the terms of such securities ("Convertible
                  Securities") whether or not such Convertible Securities were
                  outstanding on the date of grant of the Option or were
                  thereafter issued or sold;

                           (5) The issuance or sale of Common Stock upon
                  conversion or exchange of any Convertible Securities, whether
                  or not any adjustment in the purchase price was made or
                  required to be made upon the issuance or sale of such
                  Convertible Securities and whether or not such

1998 STOCK COMPENSATION PLAN - Page 10

<PAGE>

                  Convertible Securities were outstanding on the date of grant
                  of the Option or were thereafter issued or sold; or

                           (6) Upon any amendment to or change in the terms of
                  any rights or warrants to subscribe for or purchase, or
                  options for the purchase of, Common Stock or Convertible
                  Securities or in the terms of any Convertible Securities,
                  including, but not limited to, any extension of any expiration
                  date of any such right, warrant or option, any change in any
                  exercise or purchase price provided for in any such right,
                  warrant or option, any extension of any date through which any
                  Convertible Securities are convertible into or exchangeable
                  for Common Stock or any change in the rate at which any
                  Convertible Securities are convertible into or exchangeable
                  for Common Stock.

                  (f) RIGHT OF COMPANY TO MAKE ADJUSTMENTS. The grant of an
         Option pursuant to the Plan shall not affect in any way the right or
         power of the Company to make adjustments, reclassification,
         reorganizations, or changes of its capital or business structure or to
         merge or to consolidate or to dissolve, liquidate or sell, or transfer
         all or any part of its business or assets.

         14. INVESTMENT PURPOSE. Each Option under the Plan shall be granted
on the condition that the purchase of the shares of stock thereunder shall be
for investment purposes, and not with a view to resale or distribution;
provided, however, that in the event the shares of stock subject to such
Option are registered under the Securities Act or in the event a resale of
such shares of stock without such registration would otherwise be
permissible, such condition shall be inoperative if in the opinion of counsel
for the Company such condition is not required under the Securities Act or
any other applicable law, regulation, or rule of any governmental agency.

         15. NO OBLIGATION TO EXERCISE OPTION OR SAR. The granting of an
Option or SAR shall impose no obligation upon the optionee to exercise such
Option or SAR.

         16. MODIFICATION, EXTENSION, AND RENEWAL OF OPTIONS. Subject to the
terms and conditions and within the limitations of the Plan, the Committee
and the Board of Directors may modify, extend or renew outstanding Options
granted under the Plan, or accept the surrender of outstanding Options (to
the extent not theretofore exercised). Neither the Committee nor the Board of
Directors shall, however, modify any outstanding Options so as to specify a
lower price or accept the surrender of outstanding Options and authorize the
granting of new Options in substitution therefor specifying a lower price.
Notwithstanding the foregoing, however, no modification of an Option shall,
without the consent of the optionee, alter or impair any rights or
obligations under any Option theretofore granted under the Plan.

         17. EFFECTIVE DATE OF THE PLAN. The Plan shall become effective on
the date of execution hereof, which date is the date the Board of Directors
approved and adopted the Plan ("Effective Date"); provided, however, if the
Shareholders of the Company shall not have approved the Plan by the requisite
vote of the Shareholders, within twelve (12) months after the Effective Date,
then the Plan shall terminate and all Options theretofore granted under the
Plan shall terminate and be null and void.

         18. TERMINATION OF THE PLAN. This Plan shall terminate as of the
expiration of ten (10) years from the Effective Date. Options may be granted
under this Plan at any time and from time to time prior to its termination.
Any Option outstanding under the Plan at the time of its termination shall
remain in effect until the Option shall have been exercised or shall have
expired.

         19. AMENDMENT OF THE PLAN. The Plan may be terminated at any time by
the Board of Directors of the Company. The Board of Directors may at any time
and from time to time without obtaining the approval of the Shareholders of
the Company or a Subsidiary, modify or amend the Plan (including such form of
Option Agreement as hereinabove mentioned) in such respects as it shall deem
advisable in order that the Incentive Options granted under the Plan shall be
"Incentive Stock Options" as defined in Section 422 of the Code or to conform
to any change in the law, or in any other respect which shall not change: (a)
the maximum number of shares for which Options may be granted under the Plan,
except as provided in Section 14 hereof; or (b) the option prices other than
to change the manner of determining the fair market value of the Common Stock
for the purpose of Section 8(d) hereof to conform with any then applicable
provisions of the Code or regulations thereunder; or (c) the periods during
which Options may be granted or exercised; or (d) the provisions relating to
the determination of persons to whom Options shall be granted

1998 STOCK COMPENSATION PLAN - Page 11

<PAGE>

and the number of shares to be covered by such Options; or (e) the provisions
relating to adjustments to be made upon changes in capitalization. The
termination or any modification or amendment of the Plan shall not, without
the consent of the person to whom any Option shall theretofore have been
granted, affect that person's rights under an Option theretofore granted to
such person. With the consent of the person to whom such Option was granted,
an outstanding Option may be modified or amended by the Committee in such
manner as it may deem appropriate and consistent with the requirements of
this Plan applicable to the grant of a new Option on the date of modification
or amendment.

         20. WITHHOLDING. Whenever an optionee shall recognize compensation
income as a result of the exercise of any Option or SAR granted under the
Plan, the optionee shall remit in cash to the Company or Subsidiary the
minimum amount of federal income and employment tax withholding which the
Company or Subsidiary is required to remit to the Internal Revenue Service in
accordance with the then current provisions of the Code. The full amount of
such withholding shall be paid by the optionee simultaneously with the award
or exercise of an Option or SAR, as applicable.

         21. INDEMNIFICATION OF COMMITTEE. In addition to such other rights
of indemnification as they may have as Directors or as members of the
Committee, the members of the Committee shall be indemnified by the Company
against the reasonable expenses, including attorneys' fees actually and
necessarily incurred in connection with the defense of any action, suit or
proceedings, or in connection with any appeal therein, to which they or any
of them may be a party by reason of any action taken or failure to act under
or in connection with the Plan or any Option granted thereunder, and against
all amounts paid by them in settlement thereof (provided such settlement is
approved by independent legal counsel selected by the Company) or paid by
them in satisfaction of a judgment in any such action, suit or proceeding,
except in relation to matters as to which it shall be adjudged in such
action, suit or proceeding that such Committee member is liable for
negligence or misconduct in the performance of his duties; provided that
within sixty (60) days after institution of any such action, suit or
proceeding a Committee member shall in writing offer the Company the
opportunity, at its own expense, to pursue and defend the same.

         22. APPLICATION OF FUNDS. The proceeds received by the Company from
the sale of Common Stock pursuant to Options granted hereunder will be used
for general corporate purposes.

         23. GOVERNING LAW. This Plan shall be governed and construed in
accordance with the laws of the state of incorporation of the Company.

         EXECUTED on the 23rd day of December, 1998 and modified this 24th
day of June, 1999.

                                            RAMPART CAPITAL CORPORATION

                                            By:   /s/ CHARLES W. JANKE

                                                  Charles W. Janke, Chairman

ATTEST:

/s/ J. H. CARPENTER
--------------------------
J. H. Carpenter, Secretary

1998 STOCK COMPENSATION PLAN - Page 12<PAGE>

                              MANAGEMENT AGREEMENT

         THIS AGREEMENT, made as of the 12 day of November, 1999, is between
Owner (hereinafter named), and BMC-The Benchmark Management Company, a Texas
corporation doing business as Benchmark Golf (hereinafter called "Operator"):

                              W I T N E S S E T H:

         WHEREAS, Owner proposes to provide the first-class golf club and
conference center known as Newport Golf Club & Conference Center whose Site is
located at 16401 Country Club Drive, Houston, Texas (hereinafter referred to and
defined as the "Project"); and

         WHEREAS, Owner desires to obtain the benefits of Operator's expertise
in the management and operation of the Project, and Operator desires to provide
its management upon the terms and conditions set forth in this Agreement.

         NOW, THEREFORE, in consideration of the mutual promises and covenants
herein contained, Owner and Operator agree as follows:

                                    ARTICLE I

                                   DEFINITIONS

         1.1 BASE FEE. The Base Fee of SEVEN THOUSAND DOLLARS ($7,000.00) per
month, or pro rata portion thereof. The Base Fee shall be adjusted annually
according to the increase in the Consumer Price Index, mutually agreeable to
both parties.

         1.2 BUDGETS. An estimate of income, revenues and expenditures
(including capital expenditures and replacements) approved by Owner pursuant to
Paragraph 4.3 below.

         1.3 BUILDINGS. The buildings and improvements to be located on the
Project, including locker room, pro shop, golf cart storage and maintenance
area, restaurant, bar, and other public rooms, recreational facilities,
landscaped grounds and other facilities necessary for the operation of a
first-class golf club and conference center, together with all fixtures and
equipment necessary for the efficient operation of the buildings and other
improvements, including without limitation, heating, air conditioning, lighting,
sanitation, laundry, refrigeration, kitchen, and other similar fixtures and
equipment.

                                       1
<PAGE>

         1.4 EXECUTIVE COMMITTEE MEMBERS. The members of this committee shall be
the general manager, head golf professional, golf course superintendent,
marketing manager, and food & beverage manager, or any positions mutually agreed
upon between Owner and Operator. Owner will have the right to approve the
general manager, head golf professional, golf course superintendent and food &
beverage manager or require their removal if such request is for cause which
directly affects his ability to operate the Project, or maintain the Project's
image in the community. Owner will have the right to attend Executive Committee
meetings.

         1.5 FISCAL YEAR. The year ending December 31, which is the fiscal year
established by Owner for the Project.

         1.6      FURNISHINGS AND EQUIPMENT.

                  (a)      The Operating Equipment;

                  (b)      All furniture, furnishings and specialized golf
         course equipment;

                  (c)      Office furniture and equipment.

         1.7 GROSS REVENUES. Income derived from aggregate sales to unaffiliated
as well as affiliated customers of all products and services offered at the
Project, including annual golf contract fees and trail fees, food and beverage
sales, guest privilege fees, service charges, golf operations and other user
fees, and other revenues; but, excluding:

                  (a)      revenues from sales of goods or services by
         concessionaires;

                  (b)      sales and use taxes or other similar impositions
         collected directly from customers or included as the sales price of any
         goods or services;

                  (c)      revenues from the sale of disposition of capital
         assets;

                  (d)      proceeds from financings or refinancings; (e) sales
         allowances, discounts, rebates and adjustments;

                  (f)      golf revenue derived from the annual charity event
         held one day each year on behalf of the Boys and Girls Harbor.

         1.8 INCENTIVE FEE. Twenty percent (20%) of Net Operating Income over
approved operating budget for calendar year 2000 (attached hereto as Exhibit
"C"), or pro rata portion thereof, if applicable. For each of the years two
through five, the incentive Fee shall be 20%

                                       2
<PAGE>

of net operating income over each prior year. In each of years six through
ten, the Incentive Fee shall be 15% of the increased net operating income
over the four-year average actual net operating income for contract years two
through five. The Incentive Fee will be calculated annually and paid to
Operator within thirty (30) days of the presentation of final year-end
financial statements.

         1.9 INCOME BEFORE FIXED CHARGES. For any period, the sum of Gross
Revenues and business interruption insurance proceeds less all direct expenses
but before Replacement Reserves, depreciation and amortization, property and
liability insurance, interest, real estate and personal property taxes, and any
state or federal income taxes.

         1.10 NET OPERATING INCOME. For any period, the sum of Gross Revenues
and business interruption insurance proceeds less all direct and undistributed
operating expenses but before Base Fee, Incentive Fees, Replacement Reserves,
depreciation and amortization, property and liability insurance, interest, real
estate and personal property taxes, and any state or federal income taxes.

         1.11 OPERATING EQUIPMENT. All chinaware, glasses, utensils, silverware
and uniforms necessary for the operation of the Project.

         1.12 OPERATING SUPPLIES. Supplies, cleaning materials, food and
beverages, and other consumable items.

         1.13 OPERATING YEAR. A twelve-month year of operation under this
Agreement.

         1.14 OWNER. Rampart Properties Corporation, a wholly owned subsidiary
of Rampart Capital Corporation.

         1.15 OWNERS MEETING. There will be a quarterly meeting between the
Owner, the Operator's Home Office representatives and the appropriate members
of the Project's Executive Committee. At the quarterly meeting, the agenda
will consist of review of financial performance, ninety (90) day forecasts,
review of marketing strategies, reviews and status of all capital projects,
capital planning sessions and any matters relevant to management and
operation of the Project.

                                       3
<PAGE>

         1.16 PROJECT. The Buildings, the Site, the Furnishings and Equipment,
together with all entrances, exits, rights of ingress and egress, riparian
rights, easements and appurtenances thereunto belonging or appertaining to the
property known as Newport Golf Club & Conference Center.

         1.17 REPLACEMENT EXPENDITURES. Unless otherwise specified by the
Budget, the amount of Replacement Expenditures during a fiscal year will be:

<TABLE>
<CAPTION>

                  YEAR OF OPERATION         PERCENT OF GROSS SALES
                  -----------------         ----------------------
                  <S>                       <C>
                             1                    2 percent
                             2                    3 percent
                             3                    4 percent
                             4                    5 percent

</TABLE>

         1.18 SITE. A tract of real property described in Exhibit A and A-1
attached hereto on which the Buildings, golf course and nine expansion golf
holes are located.

         1.19 TERM. The original term shall be five (5) years commencing on
January 1, 2000, and Operator shall have the right as set forth in Article III
to renew the term for five (5) years.

         1.20 TERM OF THIS AGREEMENT. The phrase "Term of this Agreement" as
used herein shall mean the original term and any renewal or renewals thereof
then in effect in accordance with the provisions of Article III.

         1.21 UNIFORM SYSTEM. A Uniform System of Accounts for Hotels, as
revised from time to time and approved by The American Hotel and Motel
Association. Accounting terms used in this Agreement have the meanings given
them in the Uniform System and must conform to Generally Accepted Accounting
Principles ("GAAP").

                                   ARTICLE II

                                  OWNER'S TITLE

Owner represents and warrants as follows:

         (a) Owner is the fee simple owner of the Project and has full power and
authority to enter into this Agreement.

         (b) The Project is used as a golf club and conference center and all
necessary

                                       4
<PAGE>

governmental and other permits and approvals which Owner is required to
obtain under the terms of this Agreement for such use has been obtained and
are in full force and effect.

                                   ARTICLE III

                                TERM OF AGREEMENT

         3.1 RENEWALS. This Agreement shall continue for the term described in
Paragraph 1.19 hereof. Operator shall have the right and option to renew such
term for successive periods as set out in Paragraph 1.19 hereof, upon the
following terms and conditions:

                  (a) Each renewal term shall be upon the same terms, covenants
         and conditions as in this Agreement, except as modified in this Article
         III;

                  (b) The term of this Agreement shall have been renewed for the
         prior renewal term (if applicable);

                  (c) Operator shall exercise its right to renew the term by
         written notice to Owner at least six (6) months prior to the expiration
         of the then existing term.

                                   ARTICLE IV

                               DUTIES OF OPERATOR

         4.1 MANAGEMENT AND OPERATION. During the term of this Agreement,
Operator agrees, for and in consideration of the compensation hereinafter
provided, to supervise and direct the management and operation of the Project
including but not limited to the responsibility for all matters relating to
human resources, accounting, management information services support, and
facilities evaluation in addition to management oversight, as the independent
contractor of Owner, and Owner hereby grants Operator the sole and exclusive
right to do so. Without limiting the generality of the foregoing, Owner grants
to Operator the sole and exclusive right, and Operator agrees.

         4.2 GENERAL STANDARD. To operate the Project in the same manner as is
customary and usual in the operation of comparable facilities, to provide such
services as are customarily provided by operators of a golf club and conference
center of comparable class and standard consistent with the Project's
facilities, and to consult with Owner and keep Owner advised as to

                                       5
<PAGE>

all major policy matters affecting the Project; provided, however, that
Operator will make no major policy changes not reflected in the Budget
without prior written approval of Owner. In this connection, and except as
otherwise required by this Agreement, Operator shall have all reasonable
discretion in the operation, direction, management and supervision of the
Project, including without limitation, labor policies, credit policies
(including entering into agreements with credit card organizations),
cashiering, terms of admittance food and beverages, purchases of Operating
Equipment not to exceed $5,000, maintenance of the Project, repairs to and
replacements of Furnishings and Equipment, the institution of such legal
proceedings as are necessary in connection with tenants or otherwise in the
operation of the Project, all matters relating to employee safety, health and
welfare, insurance, benefits and the like, and all phases of advertising,
promotion, publicity, marketing and sales strategy relating to the Project.

         4.3 BUDGETS. To submit for Owner's approval, within sixty (60) days,
prior to the first day of the succeeding Fiscal Year, a Budget in reasonable
detail, including special repairs and maintenance projects and Replacement
Expenditures. In conjunction with submittal of the Budget, Owner will review the
marketing strategy, major operating assumptions, any proposed changes in
physical facilities, and the proposed Replacement Expenditures. These items may
not then be changed without the consent of both parties. If Owner and Operator
cannot agree upon a budget for the ensuing year, then the last budget submitted
by Operator along with written objections of Owner shall be submitted to a
mutually acceptable nationally recognized independent firm with expertise in the
financial aspects of golf club and conference center operations such as Pannell
Kerr Forster ("Consultant"). Consultant shall review the documents and recommend
a budget for the ensuring year. The budget so recommended by Consultant shall be
considered the Budget under which the Project will be administered. Until such
time that a Budget is approved, the prior year's actual revenues and expenses
adjusted by a percentage equal to the increase year over year in the U. S.
Consumer Price Index. Such Budgets shall, in general, form the basis on which
expenditures for the Project shall be made, it being understood and agreed that,
subject to the limitations contained in this Agreement, Operator may deviate
from such Budgets if in Operator's reasonable judgment a deviation is necessary
or desirable for the efficient operation of the Project as a first-class golf
club and

                                       6
<PAGE>

conference center. Operator makes no guarantee, warranty or representation
whatsoever in connection with the Budgets, other than that the Budgets will
be prepared in good faith to the best of Operator's ability and will be
reasonable estimates of anticipated operations. Operator will notify Owner as
soon as reasonably possible of any anticipated or actual significant variance
in the budgeted monthly income or expenses for any department, and will
provide an explanation of the reason for the variance and measures being
taken in response to it. Any variance which exceeds the monthly budgeted
total departmental amount for that department by fifteen percent (15%) per
individual item or ten percent (10%) aggregate will be deemed significant.
Any expenditures not in the approved budget and exceeding $5,000 or with a
term of longer than one year must have written Owner approval.

         4.4 EMPLOYEES. To hire, promote, discharge and supervise the work of
the management staff (i.e., general manager, assistant managers and department
heads) of the Project and to supervise through said management staff the
recruiting, hiring, promoting, discharging and work of all other operating and
service employees performing services in or about the Project, all in Project's
name. Operator agrees to hire the current Head Golf Professional, Golf Course
Superintendent and Chef and to evaluate their performance over ninety (90) days.
All Executive Committee Members shall be employees of Operator and all other
employees working in or about the Project shall be employees of Operator or its
subsidiary. Operator will, in the hiring of the management staff and other
operating and service employees of the Project, use or cause said management
staff to use reasonable care to select qualified, competent and trustworthy
employees. Operator will not enter into any agreement with an employee for an
annual base salary in excess of the General Manager's Base Salary without the
consent of the Owner. Operator may arrange a bonus plan to be paid to the
General Manager and the other members of the Executive Committee as an incentive
to maximize the total Income Before Fixed Charges, provided this plan is
specific for the Project, and not part of Operator's company-wide bonus, pension
or profit plans.

         The General Manager and other Executive Committee Members assigned to
the Project shall be employees of Operator and their total aggregate
compensation, including salary and related fringe benefits will be expenses of
the Project. The term "fringe benefits" will include

                                       7
<PAGE>

the items listed in Payroll Taxes and Employee Benefits in the Uniform
System, and will also include the Project's prorata share of costs of any of
Operator's company-wide incentive compensation plan, pension or profit plans
for employees involved in the Project if required by applicable federal
income tax laws. However, Operator will diligently and in good faith attempt
to structure its operations so that on-site employee wage and benefit plans
will be competitive with other such wages and benefits in the local area for
comparable employees and facilities.

         Operator may from time to time find it desirable to assign one or more
of its supervisory employees to the Project on a temporary basis. Owner will
reimburse Operator for all actual expenses to and from the Project and for all
room and board while at the Project for such employees while on Project
business, but only if Owner has previously approved the assignment of such
employees, which approval will not be unreasonably withheld. If such an employee
is filling a vacant position, salary and benefits will be charged to the
Project; if such an employee is on an audit or supervisory overview function,
salary and benefits will not be charged to the Project.

         Human Resource supervision and benefit administration will be handled
by Operator's Home Office personnel with no additional Human Resource fees.

         The Project will participate in Benchmark University Training Programs
for its managers. The prorata expense of the training program will be an expense
of the Project.

         4.5 CONCESSIONS. To consummate in the name of and for the benefit of
Owner, arrangement with concessionaires, licensees, tenants, or other intended
users of the facilities of the Project.

         4.6 CONTRACTS. To enter into contracts on behalf of the Owner with
prior approval of owner for the furnishing to the Project of electricity, gas,
water, steam, telephone, cleaning (including window cleaning where necessary),
vermin extermination, boiler maintenance, air conditioning maintenance, and
other utilities, services and concessions which are provided in connection with
the maintenance and operation of a first-class golf course.

         4.7 SUPPLIES. To purchase all Operating Supplies and other materials
and supplies as agent for the Owner. Owner acknowledges that Operator may
perform services as a

                                       8
<PAGE>

representative of the manufacturer of any of such items in order to secure
the benefits of lower costs in connection with purchasing arrangements for
Owner.

         4.8 MAINTENANCE. Cause to be made or installed, through a schedule of
preventative maintenance and supervisory program, all necessary or desirable
repairs, decorations, renewals, revisions, alterations, re-buildings,
replacements, additions and improvements in and to the Project; provided,
however, that such are included in the Budget or do not exceed Five Thousand
Dollars ($5,000) per item. Operator also agrees to cause needed repairs to be
recorded and serviced on a priority basis through the use of a work order
system.

         4.9 PERMITS. To apply for, obtain and maintain in the name of Owner, if
legally permitted, all licenses and permits required of Owner or Operator in
connection with the management and operation of the Project. Owner agrees to
execute and deliver any and all applications and other documents and to
otherwise cooperate to the fullest extent with Operator in applying for,
obtaining and maintaining such licenses and permits.

         4.10 COMPLIANCE WITH LAWS. Owner and Operator covenant to each other
that throughout the term of this Agreement, they will not take any action which
would intentionally violate any statutes, ordinances, laws, rules, regulations,
orders and requirements of any federal, state or municipal government and/or
appropriate departments, commissions, boards or officers having jurisdiction
over the Project or the construction, maintenance or operator thereof. Owner and
Operator are to comply with all orders and requirements of the local Board of
Fire Underwriters, or any other body which may hereafter exercise similar
functions, and any requirements of any agreements concerning financing of the
Project (other than the payment of loan monies, taxes or insurance). If Owner
shall adequately secure and protect Operator from loss, cost, damage and expense
by bond or other means satisfactory to Operator, Owner at its sole expense and
without cost to Operator, shall have the right to contest by proper legal
proceedings the validity of any such statute, ordinance, law, rule, regulations,
order or requirements involving Owner's actions, provided such contest shall not
result in the suspension of operations of the Project. Subject to the foregoing,
Owner may postpone compliance with any such law, ordinance, order, rule,
regulation or requirement to the extent and in the manner provided by law until
final determination of any such proceedings.

                                       9
<PAGE>

Owner shall prosecute all such proceedings with all due diligence and
dispatch. Notwithstanding the foregoing, if failure to comply promptly with
any statute, ordinance, law, rule, regulations, order or requirement would
result in the suspension of operations of the Project or would expose Owner
or Operator to the imminent danger of criminal liability other than the
payment of fines, then in such event Operator may (but shall not be obligated
to) cause the same to be compiled with at Owner's expense.

         4.11 CASH ACCOUNTS. As agent for Owner, to deposit in a banking
institution or institutions in a segregated account with both Owner and Operator
having signatory and withdrawal capacity, in the Project's name all monies
furnished by Owner as working capital and all monies received by Operator from
the Project's operation or for or on behalf of Owner, and subject to the
limitations in this Agreement, to disburse and pay the same on behalf of the
Project in such amounts and at such times as the same are required in connection
with the ownership, maintenance and operation of the Project:

                           (a)      OPERATING COSTS. All costs and expenses of
         maintaining, operating and supervising the operation of the Project,
         including, without limitation, the following:

                  (i)      The cost of all purchase of Operating Supplies.

                  (ii)     Reimbursement to Operator for salaries, fringe
         benefits and expenses of Project employees, including the Executive
         Committee and General Manager.

                  (iii)    Out-of-pocket expenses incurred for the account of or
         in connection with the Project, including reasonable traveling expenses
         of executives and employees of Operator and its subsidiaries and
         affiliates.

                  (iv)     All expenditures which are of an ordinary nature and
         which have been covered in the Budget for the then current year, for
         repairs and maintenance, Furnishings and Equipment for capital
         improvements.

                  (v)      All legal and accounting fees, paid to outside third
         parties.

                  (vi)     The Base Fee, Incentive Fee, and all reimbursements
         or other payments due to Operator under the provisions of this
         Agreement.

                                       10
<PAGE>
                  (vii)    Cost and expense of utilities, services and
         concessions at the Project and any and all other expenditures provided
         for in this Agreement.

                  (viii)   Any other charge, item or expense or other item which
         Owner, in writing, directs to be paid.

                  (ix)     Any charges for outside security consultant, approved
         in operating budget or approved directly by owner.

                  (x)      If property is linked to Benchmark's Sales and
         Catering Operating System and national database, any mutually agreed
         allocations will be expenses of the property.

         (b) TRANSFER OF FUNDS. At the end of each calendar month, Operator will
determine the amount of cash reserves which reasonably need to be retained in
the operating account, which cash reserves shall not exceed the projected cash
expenditure requirements for operating costs, debt service, taxes, Replacement
Expenditures and maintenance for the following calendar month. The balance of
funds in the operating account (if any) will then be transferred to one or more
accounts designated by Owner, which will be Owner's sole accounts, within
fifteen (15) days after the end of such calendar month.

         (c) INTEREST. Interest earned on Project funds will not be considered
Project income, but will be Owner's funds and will be used to offset Owner's
required working capital contributions (if needed).

         (d) RESOLUTIONS. Owner shall provide all necessary corporate
resolutions required in order to open Cash Accounts within a reasonable period
of time, not to exceed thirty (30) days from such time as the same are required
in connection with the ownership, maintenance and operation of the Project.

         4.12 Owner to be responsible for paying all real estate and personal
property taxes and to notify Operator of payments and proper allocations for
financial statement preparation.

         4.13 INSURANCE. Owner will take out and maintain at all times during
the term of this Agreement, insurance as provided in the Insurance Exhibit B
attached hereto and made a part of this Agreement for all purposes. Owner will
pay insurance premiums for policies specified in Exhibit B and notify Operator
of payments and proper allocations for financial statement preparation.

                                       11
<PAGE>

                  Operator will take out and maintain Worker's Compensation
insurance on its employees with limits of $1,000,000. The cost of such insurance
shall be an expense of the Project.

                  Operator will take out and maintain a crime policy on its home
office employees and its employees at the Project with limits of not less than
one million dollars. The cost of such policy will be an expense of the Operator.

                  Operator shall name Owner and Owner shall name Operator as
Additional Insured.

         4.14 FINANCIAL STATEMENTS. To deliver or cause to be delivered to Owner
statements as follows:

                  (a) MONTHLY. Within fifteen (15) days after the end of each
calendar month, Operator shall deliver or cause to be delivered to Owner a
complete financial statement, including but not limited to balance sheet and
statement of earnings before income taxes showing the results of operation of
the Project for that calendar month and the cumulative results of operation for
the Fiscal Year to date, and having annexed thereto a computation of the
management fee for such month and the Fiscal Year to date. Such statement and
computation shall be prepared by the Operator's Home Office and taken and made
from the books of account of the Project. In addition to the monthly statement,
Operator shall provide to Owner the Project's check registers, accounts payable
and accounts receivable, detailed ledgers and bank reconciliations. Operator's
Senior Vice President, Financial Operations shall warrant these monthly
statements to fairly present the Project's operation results provided that such
warrant may be subject to future changes resulting from year-end audit
adjustments.

                  (b) NINETY-DAY FORECAST. Simultaneously, with the presentation
of the monthly financial statement; but no later than five (5) days prior to the
commencement of the first month of the ninety (90) day forecast period, Operator
shall present and review with Owner a ninety (90) day forecast. Such forecast
shall project revenues and expenses for the next ninety (90) day period as well
as cash needs or surpluses during the ninety (90) day period.

                  (c) ANNUAL. Within thirty (30) days after the end of each
Fiscal Year,

                                       12
<PAGE>

Operator will deliver or cause to be delivered to Owner a balance sheet and
related statements of earnings before income taxes, and changes in Owner's
equity and financial position for the year then ended. If required and at the
expense of the project, these financial statements may be audited by
independent public accountants recognized in the club management field,
approved by both Owner and Operator and retained by Owner. In addition, the
computation of the Base Fees and Incentive Fees, shall be included in the
footnotes to the audited financial statements and shall be included within
the scope of the independent auditor's examination.

         The preparation of financial statements, payment of accounts payable
and maintenance of accounting records by Operator are included in the Base Fee
and no additional accounting fees will be paid to Operator.

         4.15 LEGAL MATTERS. To institute, in its own name or in the name of
Owner, and at the Project's expense, any and all legal actions or proceedings to
collect charges, rent or other income for the Project or to oust or dispossess
guests, tenants or other persons in possession therefrom, or to cancel or
terminate any lease, license or concessions agreement for the breach thereof or
default thereunder by the tenant, licensee or concessionaire; provided, however,
that Operator shall not institute any legal actions or proceedings to oust or
dispossess tenants or other persons in possession thereunder, or cancel or
terminate any lease, license or concession agreement involving in excess of Five
Thousand Dollars ($5,000), or having a then unexpired term of one (1) year or
more, without prior consent of Owner.

                                    ARTICLE V

                                      FEES

         5.1 PAYMENT. As compensation for the services to be rendered by
Operator during the term of this Agreement, Owner authorizes Operator to pay its
base fee monthly from the authorized Cash Accounts specified in Section
4.11.Atime specified in Section 1.8, Incentive Fees, derived from the Project in
each Fiscal Year, or portion thereof if applicable shall be paid by Owner.

         5.2 ADJUSTMENTS. If, based on the audited yearly financial statements,
the aggregate installments of the management fee paid in any Fiscal Year shall
be more or less than the total

                                       13
<PAGE>

annual management fee due for the Fiscal Year, Operator, or Owner, as the
case may be, shall pay to the other the amount of such overpayment or
underpayment within thirty (30) days after the date of the Auditor's report
on the year-end financial statements.

                                   ARTICLE VI

                     GENERAL COVENANTS OF OWNER AND OPERATOR

         6.1 BOOKS AND RECORDS. Operator shall supervise and direct the keeping
of, full and adequate books of account and such other records reflecting the
results of the operation of the Project. Such books and records shall be kept in
all material respects in accordance with the Uniform System of Accounts and
according to GAAP. Operator will establish an internal control program designed
to stay abreast of all operational responsibilities and to provide constructive
development of such responsibilities.

         6.2 WORKING CAPITAL. Owner will, upon the commencement of this
Agreement and thereafter, provide One Hundred Thousand Dollars ($100,000) in
funds required for the uninterrupted and efficient operation and maintenance of
the Project in accordance with the previously approved Budget and sound cash
management. If, at any time during the term of this Agreement, the funds
available from Project operations for the payment of all financial requirements
of the Project, including any of the fees and the costs and expenses specified
in Paragraph 4.11, 5.1 are insufficient to pay the same as they become due and
payable, Owner shall make deposits of funds into the Project's bank accounts
sufficient to make the payments. To implement this obligation, Owner agrees to
establish and maintain, at its sole cost and expense, a financing program for
the Project to ensure that sufficient funds exist at all times to meet all
financial requirements of the Project. To the extent that Owner fails to
establish and maintain such a financing program, and fees earned and expenses
incurred by Operator are unpaid and outstanding, the fees and expenses shall
accrue interest at the annual rate of the lesser of one and one-half percent
(1.5%) over the prime lending rate of Bank One (Houston) computed on the first
day of each month or the maximum interest rate allowable unable applicable law.
A similar rate of interest shall be paid by Owner to Operator on any advances
Operator may elect, without obligation, to make on Owner's behalf in payment of
any

                                       14
<PAGE>

obligations of Owner to third parties or Operator.

         6.3 OPERATING EXPENSES. Operator will pay for the costs and expenses of
maintaining and operating the Project from funds in the operating account, as
supplemented by Owner's working capital contributions provided pursuant to
Paragraph 6.2.

         6.4 OWNER'S RIGHTS OF INSPECTION AND REVIEW. Operator shall accord to
Owner, its accountants, attorneys and agents, the right to enter upon any part
of the Project during normal business hours and upon prior reasonable notice to
the Project's general manager during the term of this Agreement for the purpose
of examining or inspecting the same or examining or making extracts of books and
records of the Project or for any other purpose which Owner, in its discretion,
shall deem necessary or advisable, but the same shall be done with as little
disruption to the business of the Project as possible. Books and records of the
Project shall be kept at the Project or such other place as the parties may
hereafter agree. In all cases, prior reasonable notice and proper identification
must be given to management in charge of the Project before inspection or review
is granted.

         6.5 REPLACEMENT EXPENDITURES. Funds for Replacement Expenditures shall
be provided by Owner as reasonably required, but not to exceed those specified
in that year's Budget. These funds will be used for making capitalized
replacements, substitutions and additions to the Furnishing and Equipment of the
Project in accordance with the Budget. Any expenditure for replacement,
substitution of or addition to Furnishings and Equipment during each Fiscal Year
may be made by Operator in accordance with the Budget up to the cumulative total
of Replacement Expenditures specified in the applicable Budget. Any Replacement
Expenditure of five percent (5%) or more in excess of the budgeted amount shall
be subject to Owner's discretionary approval. If the Project's Total Income
Before Fixed Charges differs from that projected by the Budget, Owner and
Operator will revise the budgeted Replacement Expenditures as appropriate to
reflect such change on a quarterly basis. Upon termination of this Agreement,
the remaining balance of any Replacement Expenditure funds advanced by Owner
shall be returned to Owner.

         6.6      INDEMNIFICATION OF OPERATOR.

                  (a) Operator, its agents and employees, shall not be liable to
Owner or to any

                                       15
<PAGE>

other person for any omission, negligent, tortuous or otherwise, of any agent
or employee of Owner or Operator in the performance of this Agreement, except
this provision will not apply to any such liability arising from any fraud,
willful misconduct or negligence or intentional acts of Operator, its
employees or agents. Owner hereby agrees to indemnify and hold harmless
Operator, its agents and employees from and against any such liability, loss,
damage, cost or expense (including attorneys' fees) by reason of any such act
or omission which is covered by the preceding sentence.

                  (b) Owner, its agents and employees, shall not be liable to
Operator or to any other person for any omission, negligent, tortuous or
otherwise, of any agent or employee of Owner or Operator in the performance of
this Agreement, except this provision will not apply to any such liability
arising from any fraud, willful misconduct or negligence or intentional acts of
Owner, its employees or agents. Operator hereby agrees to indemnify and hold
harmless Owner, its agents and employees from and against any such liability,
loss, damage, cost or expense (including attorneys' fees) by reason of any such
act or omission which is covered by the preceding sentence.

         6.7 EMPLOYMENT OF EXECUTIVE COMMITTEE MEMBERS. If any of the Executive
Committee Members of the Project or other off-site executive employees of
Operator or any of its affiliated entities leave the employment of Operator or
the affiliate involved for any reason, including termination by Operator, Owner
will not hire or cause to be hired such Executive Committee Members or other
employees in any capacity for at least two (2) years following such termination
of employment with Operator, without prior written consent of Operator. This
restriction will not apply to Executive Committee Members if Operator elects not
to renew this Agreement for any additional terms permitted hereunder.

         6.8 MAJOR CONTRACTS. Any expenditure, concession, contract or agreement
made by Operator under this Agreement which has a term (including renewal
options) longer than one (1) year, or involves a total expenditure in excess of
Five Thousand Dollars ($5,000), is called a "Major Contract" and must have
Owner's prior approval. Unless otherwise provided for herein, or Owner otherwise
consents, Major Contracts will be in Owner's name.

         6.9 APPEALS. Unless otherwise directed by Owner, Operator may (but
shall not be

                                       16
<PAGE>

obligated to) take, at the Project's expense, any appropriate steps to
protest and/or litigate to final decision in any appropriate court or forum
any violation, order, rule or regulation affecting the Project. Any counsel
to be engaged under this paragraph or Paragraph 4.14 above shall be mutually
approved by Owner and Operator.

                                   ARTICLE VII

                                   TRADE NAME

         7.1 USE. The trademarks and service marks of both Owner and Operator
may be used in connection with the operation of the Project but only with the
party involved's prior consent of the proposed use. It is expressly agreed that
neither party will, by virtue of the operations under this Agreement, acquire
any right to any trademark or service mark of the other party. Each party agrees
to cooperate with the other party by all reasonable means in the protection of
its trademarks and service marks.

         7.2 RESTRICTION. Anything contained in this Article VII to the contrary
notwithstanding, upon the expiration or earlier termination of this Agreement,
Owner shall have the right to use, in connection with the operation of the
Project, any and all items of Operating Equipment and Operating Supplies then on
hand bearing the trademarks or service marks of Operator but shall not reorder
any such items; and thereafter Owner shall not use any trademark or service
marks of Operator for any purpose. It is expressly provided, however, that
Operator may, at its expense, replace any such items with supplies of comparable
quality at its expense, and from and after such replacement Owner shall have no
right to use such items bearing Operator's trademarks or service marks. Any
merchandise in the golf shop utilizing the Benchmark Golf logo must first
receive Owner's approval.

                                  ARTICLE VIII

                                    TRANSFERS

         8.1 TRANSFERS BY OPERATOR. Operator may not sell or transfer any of its
interests in this Agreement without Owner's prior written consent. This
restriction shall not apply to transfers to entities in which the Operator or
Benchmark Hospitality, Inc., has at least fifty-one

                                       17
<PAGE>

percent (51%) ownership interest and which the Operator controls.

         8.2      TRANSFERS BY OWNER.

                  (a) RESTRICTIONS. If Owner sells, transfers or leases either
         the Project or its interest in this Agreement and it is not due to:

                            (i) any transfer or restructuring by Owner, so long
                  as Owner retains control over the entity owning the Project
                  and remains obligated to make the contributions of working
                  capital required by this Agreement; or

                           (ii) any transfer or restructuring made pursuant to
                  bona fide financing or refinancing of the Project;

         either party hereto will then have the right to terminate this
         Agreement. Termination will be effective sixty (60) days after Operator
         and/or Owner has received the notice of termination. Upon termination
         pursuant to this Paragraph 8.2(a), Owner will pay Operator a
         termination payment as defined in Paragraph 9.4.

         8.3      EFFECT OF TRANSFER. This Agreement will inure to the benefit
         of, and be binding upon, any permitted successors and assigns of the
         parties. No transfer or assignment will relieve the transferring party
         of its obligations hereunder.

                                   ARTICLE IX

                                   TERMINATION

         9.1      BY OWNER.  Owner may terminate this Agreement if:

                  (a) BANKRUPTCY. Operator shall apply for or consent to the
appointment of a receiver, trustee or liquidator of Operator or of all or a
substantial part of its assets, file a voluntary petition in bankruptcy, or
admit in writing its inability to pay its debts as they come due, make a general
assignment for the benefit of creditors, file a petition or an answer seeking
reorganization or arrangement with creditors or to take advantage of any
insolvency law, or file an answer admitting the material allegations of a
petition filed against Operator in any bankruptcy, reorganization or insolvency
proceedings, or if an order, judgement or decree shall be entered by any court
of competent jurisdiction on the application of a creditor adjudicating Operator
bankrupt or insolvent or approving a petition seeking reorganization of Operator
or

                                       18
<PAGE>

appointing a receiver, trustee or liquidator of Operator or of all or a
substantial part of its assets, and such order, judgment or decree shall
continue unstayed and in effect for any period of ninety (90) consecutive
days; or

                  (b) DEFAULT. Operator shall fail to keep, observe or perform
any covenant, agreement, term or provision of this Agreement to be kept,
observed or performed by Operator and such default shall continue for a period
of thirty (30) days after notice thereof by Owner to Operator, or if such
default cannot be cured within thirty (30) days, then such additional period as
shall be reasonable, provided that Operator has proceeded to cure such default.

                  (c) FAILURE TO MEET PERFORMANCE STANDARD. If for any two
consecutive fiscal years beginning with the calendar year 2000, during the
term of this Agreement, Income Before Fixed Expenses is less than eighty
percent (80%) of the Owner approved budgeted amount ("The Performance
Standard"), Owner may elect to terminate this Agreement by notice given to
the Operator within sixty (60) days after receipt of the necessary financial
information from the Operator, which termination shall be effective not less
than sixty (60) days nor more than ninety (90) days after the giving of such
notice. If the Owner does not deliver to Operator the notice provided for
herein and within the period provided, Owner shall be deemed to have waived
its rights under this section with respect to such fiscal year. Owner's
election to terminate under this Paragraph 9.1(c) shall be null and void when
Income Before Fixed Expenses does not meet the Performance Standard if the
Operator is able to show (i) that the operations of comparable facilities in
the local metropolitan area suffered similar loses in Income Before Fixed
Charges by reason of unfavorable economic climate (comparable statistics are
to be furnished by Pannell Kerr Forster (PKF) or another recognized industry
expert, as agreed upon, in the event PKF no longer provides such services),
or (ii) that failure to meet the Performance Standard was because Owner
failed to advance working capital funds to the extent required by this
Agreement. In measuring a performance standard of the operational comparison
with other operators, reference shall be made to rates of percentage change
rather than absolute dollar amounts. Comparable and competing properties will
be agreed between Owner and Operator prior to the commencement of each year
to which this standard may apply. In the event that there is disagreement
regarding the

                                       19
<PAGE>

preceding, PKF or another recognized industry expert will be engaged (the
cost of which will be borne by the losing party) to arbitrate. Its decision
will be final. Notwithstanding the foregoing, should Income Before Fixed
Expenses not meet the Performance Standard for any fiscal year the Operator
may, at its option, contribute the difference from its separate funds and
thereupon the required level of performance shall be deemed achieved for such
fiscal year.

                  (d) COMPETITIVE FACILITIES. If during the term of this
Agreement, Operator contracts to operate or manage a comparable golf club and
conference center that provides services consistent with the Projects that is
located within twenty-five miles of the Project in any direction without
Owner's written approval.

9.2      BY OPERATOR.  Operator may terminate this Agreement if:

                  (a) DEFAULT. Owner shall fail to keep, observe or perform any
covenant, agreement, term or provision of this Agreement to be kept, observed or
performed by Owner and such default shall continue for a period of thirty (30)
days after notice thereof by Operator to Owner, or if such default cannot be
cured within thirty (30) days, then such additional period as shall be
reasonable, provided that Owner has proceeded to cure such default.

                  (b) CASUALTY. The Project or any portion thereof shall be
materially damaged by fire or other casualty and if Owner fails to repair,
restore, rebuild or replace any such damage or destruction within one hundred
twenty (120) days after such fire or other casualty, or shall fail to complete
such work diligently.

                  (c) BANKRUPTCY. Owner shall apply for or consent to the
appointment of a receiver, trustee or liquidator of Owner or of all or a
substantial part of its assets, file a voluntary petition in bankruptcy or admit
in writing its inability to pay its debts as they come due, make a general
assignment for the benefit of creditors, file a petition or an answer seeking
reorganization or arrangement with creditors or to take advantage of any
insolvency law, or file an answer admitting the material allegations of a
petition filed against Owner in any bankruptcy, reorganization or insolvency
proceeding, or if any order, judgment or decree shall be entered by any court of
competent jurisdiction on the application of a creditor adjudicating Owner
bankrupt or insolvent or approving a petition seeking reorganization of Owner or
appointing a

                                       20
<PAGE>

receiver, trustee or liquidator of Owner or of all or a substantial part of
the assets of Owner and such order, judgment or decree shall continue
unstayed and in effect for any period of ninety (90) consecutive days.

         9.3      PROCEDURE.

                  (a) GENERALLY. Termination shall be by written notice from
the party entitled to terminate which will specify the effective date of
termination, which will not be less than sixty (60) or more than ninety (90)
days after the notice is delivered, ("Termination Date"). On the date of
termination, Operator will transfer to Owner all funds, accounts, deposits,
receivables, Operating Supplies, equipment, reservations, contracts,
information concerning prospective customers and other items or things of any
kind under its control or supervision pertaining to the operation and
management of the Project and will fully disclose to Owner any information
Operator may have concerning operation or management of the Project which had
not previously been made available to Owner. In addition, Owner will have the
option to employ any on-site staff of Operator (excluding members of the
Executive Committee), effective as of termination. As promptly as possible
after termination, Operator will deliver to Owner audited financial
statements for the Project up to the date of termination. The auditor's costs
for preparing these statements will be paid by Owner. If Operator terminates
this Agreement pursuant to Paragraph 9.2, Owner will pay Operator a
reasonable termination fee to cover relocation expenses of Operator's
full-time on-site employees, but in no event will this fee be greater than
one (1) month's regular salary for each such employee who has not been
employed by Owner after termination pursuant to this Paragraph 9.3.

                  (b) EFFECT OF TERMINATION. All obligations of the parties
under this Agreement shall automatically terminate on the effective date of
the Termination Date, except as other explicitly provided for hereunder, and
except for any such obligations which have accrued or arose prior to
Termination Date.

         9.4 TERMINATION PAYMENTS. If, during the initial term of this
Agreement, Operator terminates this Agreement pursuant to Paragraphs 8.2(a)
or 9.2(a), Owner shall pay Operator a termination payment equal two times the
Base and Incentive Fees earned by Operator during the preceding twelve (12)
month period, or in the event a twelve (12) month period has not

                                    21

<PAGE>

been completed, based upon the agreed upon Budget for the next twelve (12)
month period ("Termination Payment") and thereafter, the Termination Payment
shall be one (1) times Base and Incentive Fees.

         Termination payments are considered full liquidated damages with no
right or cause of action on the part of the Operator. In addition, Owner
shall pay a reasonable fee to cover relocation expenses of Operator's
full-time on-site employees, but in no event will this relocation fee be
greater than one (1) month's regular salary for each such employee who has
not been employed by Owner after termination. If this Agreement is terminated
pursuant to Paragraph 9.1(a), 9.1(b). 9.1(c) or 9.1(d) there are no
termination payments or fees due Operator pursuant to this paragraph.

         9.5 PAST DUE FEES. Except as specifically provided herein all fees
payable under Paragraph 9.4 are in addition to any past due fees payable to
Operator under other portions of this Agreement.

                                    ARTICLE X

                                  CONDEMNATION

         10.1 TOTAL. If the whole of the Project shall be taken or condemned
in any eminent domain, condemnation, compulsory acquisition or like
proceeding by any competent authority for any public or quasi-public use or
purpose, or if such a portion thereof shall be taken or condemned as to make
it imprudent or unreasonable, in Operator's reasonable opinion, to use the
remaining portion as a golf club and conference center of the type and class
immediately preceding such taking or condemnation, then in either of such
events the Term of this Agreement shall cease and terminate as of the date on
which Owner shall be required to surrender possession of the Project as a
consequence of such taking or condemnation, and Operator shall be paid any
damages awarded in condemnation to the extent any award for such taking or
condemnation includes compensation to Operator for any loss of income
resulting from such taking or condemnation. If the award contains no express
award to the Operator, then any such award for loss of income shall be fairly
and equitably apportioned between Owner and Operator so as to compensate
Operator for any such loss of income that it would have derived from its
management fee for the longer of the remainder of the then current term

                                      22

<PAGE>

of this Agreement (excluding renewal options) or two (2) years. Operator
shall continue to supervise and direct the management and operation of the
Project until such time as Owner shall be required to surrender possession of
the Project as a consequence of such taking or condemnation.

         10.2 PARTIAL. If only a part of the Project shall be taken or
condemned and the taking or condemnation of such part does not make it
unreasonable or imprudent, in Operator's reasonable opinion, to operate the
remainder as a golf club and conference center of the same type and class as
immediately preceding such taking or condemnation, this Agreement shall not
terminate. In such event, the entire award shall belong to Owner, but out of
the award to Owner, so much thereof as shall be reasonably necessary to
repair any damage to the Project, or any part thereof, or to alter or modify
the Project, or any part thereof, so as to render the Project a complete and
satisfactory architectural unit as a golf club and conference center of the
same type and class as immediately preceding the taking or condemnation,
shall be used for that purpose.

                                   ARTICLE XI

                                     NOTICES

         11.1 GENERAL. Any approvals, consents or notices by either party to
the other shall be in writing and shall be given and be deemed to have been
duly given if either delivered personally or five (5) days after having been
mailed in a registered or certified postpaid envelope addressed as set forth
below, or, if the address for the notice of either party shall be duly
changed as hereinafter provided, delivered or mailed as aforesaid to such
party at such changed address. Either party may at any time change the person
or address for notice to such party by the delivery or mailing as aforesaid
of a notice stating the change and setting forth the changed address. Notices
shall be addressed as follows:

         If to Owner, to the attention of:

                  Jim Carpenter
                  President
                  Rampart Properties Corporation
                  700 Louisiana, Suite 2550

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<PAGE>

                  Houston, Texas  77002

         If to Operator, to the attention of:
                  Burt Cabanas
                  Chairman & Chief Executive Officer
                  BMC-The Benchmark Management Company
                  2170 Buckthorne Place, Suite 400
                  The Woodlands, Texas  77380

         11.2 APPROVALS. If any approvals or consents are required by this
Agreement, they will be given within the time period specified, or if none is
required, within thirty (30) days. Failure to either approve or deny within
the required time will be deemed approval.

                                   ARTICLE XII

                            MISCELLANEOUS PROVISIONS

         12.1 NO PARTNERSHIP OR JOINT VENTURE. Nothing contained in this
Agreement shall constitute or be construed to be or create a partnership or
joint venture between Owner, its successors or assigns, on the one part, and
Operator, its successors or assigns, on the other part.

         12.2 AGREEMENT NOT AN INTEREST IN REAL PROPERTY; SUBJECT AND
SUBORDINATE. This Agreement shall not be deemed at any time to be an interest
in real estate or a lien of any nature against the Project or the land on
which it is erected. This Agreement shall at all times be subject and
subordinate to all mortgages on the Project or the land on which is erected
which may now or hereafter be outstanding, to all renewals, modifications,
consolidations, replacements and extensions thereof. This clause shall be
self-operative and no further instrument of subordination shall be required
by any mortgagee. However, Owner and Operator shall execute promptly any
certificate or other document that any mortgagee may request as to the
subordination of this Agreement.

         12.3 NON-COMPETE. Operator agrees that during the term of this
Agreement, it will not operate or manage a comparable golf club and
conference center that provides services consistent with the Projects and is
located within twenty-five miles of the Project in any

                                     24

<PAGE>

direction without Owner's written approval.

                  Operator and Owner acknowledge that Redstone Capital,
Operator's capital partner, is attempting to purchase the El Dorado Golf
Club. If Redstone is successful in its attempt to purchase El Dorado and
either Operator or Owner determine this to be in direct competition with the
Newport Golf Club and Conference Center, either may terminate this Management
Agreement with written notice. This shall also apply to any golf club or
conference center owned by Redstone and managed by Benchmark.

         12.4 FORCE MAJEURE. Except for failure to pay any sums required by
this Agreement, neither party hereto shall be in default for failure to
perform any of its obligations pursuant to this Agreement if and to the
extent that it can establish that such failure was occasioned by any
circumstances which were beyond its control and which by the exercise of due
diligence and foresight it could have not prevented or overcome.

         12.5 MODIFICATION AND CHANGES. This Agreement cannot be changed or
modified except by another agreement in writing signed by the party sought to
be charged therewith or by its duly authorized agent.

         12.6 UNDERSTANDINGS AND AGREEMENTS. This Agreement constitutes all
of the understandings and agreements of whatsoever nature or kind existing
between the parties with respect to Operator's management of the Project.
Operator makes no guarantee, warranty or representation that there will be
profits or that there will not be losses from the operation of the Project,
but does warrant that any financial or other projections or forecasts it may
deliver to Owner will be reasonable and made in good faith and to the best of
its ability.

         12.7 HEADINGS. The article and paragraph headings contained herein
are for convenience of reference only and are not intended to define, limit
or describe the scope or intent or any provision of this Agreement.

         12.8 COSTS OF ENFORCEMENT. In any action to enforce this Agreement,
collect damages as a result of a breach of its provisions, or to collect any
indemnity provided for herein, the prevailing party shall also be entitled to
collect all its costs in such action, including the costs of investigation,
settlement, expert witnesses and reasonable attorneys' fees, together with
all additional costs incurred in enforcing or collecting any judgment
rendered.

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         12.9 GOVERNING LAW. This Agreement shall be deemed to have been made
and shall be construed and interpreted in accordance with the laws of the State
of Texas.

                                        26

<PAGE>

         IN WITNESS WHEREOF, the parties hereto have executed or caused to be
executed this Agreement, all as of the day and year first above written.

                                    OWNER

                                    RAMPART PROPERTIES CORPORATION

                                    By: /s/ J. H. CARPENTER
                                        -------------------------------
                                            J. H. Carpenter
                                            President

                                    OPERATOR

                                    BMC-THE BENCHMARK MANAGEMENT COMPANY

                                    By:     /s/ R. DENNIS BLYSHAK
                                        --------------------------------
                                            R. Dennis Blyshak
                                            Senior Vice President

                                       27

<PAGE>

                              EXHIBIT "A" INSURANCE

Several pages of mete and bounds legal description of the Newport Golf Club
and Conference Center.

                                       28

<PAGE>

                                          EXHIBIT "B" INSURANCE

INSURANCE. Owner shall carry or cause to be carried, at its expense,
insurance with responsible and reputable companies in such amounts and
covering such risks as is usually carried by companies engaged in similar
businesses and owning similar properties in the same area and which will be
consistent with all lenders' requirements. Such insurance shall include, but
not be limited to:

         a.       All Risk Property insurance coverage including boiler and
                  machinery and sprinkler leakage insurance on all facilities
                  and all improvements thereto and contents therein in an amount
                  of not less than the full replacement value.

         b.       Business Interruption and/or Rental insurance providing
                  coverage on all facilities for loss of income resulting from
                  the shutdown arising from a peril usually insured under a
                  standard all risk policy form. Such coverage shall be for a
                  period of one (1) year or the estimated time to rebuild the
                  facilities in a diligent manner following the loss, whichever
                  is greater.

         c.       General Liability insurance coverage providing third party
                  bodily injury and property damage coverage with endorsements
                  provided for contractual liability, owners protective
                  liability, liquor liability and completed operations/products
                  liability coverage.

         d.       Automobile Liability insurance providing third party bodily
                  injury and property damage coverage for losses arising from
                  the ownership, operation or use of an owned, non-owned or
                  hired vehicle.

         e.       Umbrella Liability coverage providing limits of liability
                  protection in an amount of not less than Ten Million Dollars
                  ($10,000,000) per occurrence excess of the limits provided
                  under (a), (d) and (e) above.

Operator shall carry or cause to be carried insurance with responsible and
reputable companies in such amounts and covering such risks as is usually
carried by companies engaged in similar businesses and owning similar properties
in the same area and which will be consistent with all lenders' requirements.
Such insurance shall include, but not be limited to:

         a.       Workers Compensation and Employers Liability coverage (in
                  accordance with all

                                       29

<PAGE>

                  state and federal laws) on all employees of Operator employed
                  at the Project with limits of coverage for workers
                  compensation based on the statutory benefits established
                  within the State of Texas and Employers Liability limits of
                  not less than One Million Dollars ($1,000,000) as a Project
                  expense.

         b.       Crime policy to cover Operator's employees at the Project and
                  at Operator's Home Office with limits of coverage not less
                  than One Million Dollars at Operator's expense.

All such insurance shall name Owner, Operator and any Contractors so
designated by Owner or Operator that are employed in performance of this
Contract as additional insureds. Owner shall cause all insurance carried by
the construction contractor and any subcontractors employed by the
construction contractor to contain a waiver of subrogation in favor of Owner
and Operator. Owner shall furnish Operator with certificates of insurance or
at the written request of Operator, copies of insurance policies relative
thereto. Such policies shall not be cancelable or subject to modification
without at least sixty (60) days' written notice to Owner. This insurance
will be coordinated with any other insurance required by lenders, contractors
or others to avoid duplication or excessive costs. Any deductibles on
insurance policies maintained by Owner shall be for the account of the Owner.
All insurance coverages carried will be with the mutual agreement of Owner
and Operator.

                                      30

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