Document:

<PAGE>

                                                                   EXHIBIT 10.11

03/25/98 JBC
04/02/98 JBC
04/17/98 JBC
04/20/98 JBC
04/26/98 JBC
                                  OFFICE LEASE
                              SCOTTSDALE NORTHSIGHT

         THIS INDENTURE OF LEASE (the "Lease"), dated as of the 30th day of
April, 1998, by and between OPUS WEST CORPORATION, a Minnesota corporation,
owner of the Office Complex (as hereinafter defined), hereinafter referred to as
"Lessor", and JDA SOFTWARE GROUP, INC., a Delaware corporation, hereinafter
referred to as "Lessee".

                                  WITNESSETH:

         That Lessor, in consideration of the rents and covenants hereinafter
set forth, does hereby lease and let unto Lessee, and Lessee does hereby hire
and take from Lessor, that certain space shown and designated on the site plan
attached hereto and made a part hereof as Exhibit A, which space shall consist
of not less than 95,000 rentable square feet (the final area to be determined
pursuant to Article XXI, below) and shall be comprised of the entire rentable
areas on the second (2nd) and third (3rd) floors (at a minimum) of the Office
Complex containing approximately 136,000 rentable square feet, to be constructed
by Lessor west and contiguous to 87th Street and south of Raintree Drive,
Scottsdale, Arizona 852______, and, subject to the naming rights of Lessee
provided herein, to be known as Scottsdale Northsight. The aforesaid space
leased and let unto Lessee is hereinafter referred to as the "Premises"; the
land (including all easement areas appurtenant thereto) upon which the building
("Building") of which the Premises are a part is hereinafter referred to as the
"Property"; and the Property and all buildings and improvements and personal
property of Lessor used in connection with the operation or maintenance thereof
located therein and thereon and the appurtenant parking facilities, if any, are
hereinafter called the "Office Complex".

         Lessee hereby accepts this Lease and the Premises upon the covenants
and conditions set forth herein and subject to any encumbrances (but subject
also to the non-disturbance covenants contemplated in Article XV, below),
covenants, conditions, restrictions and other matters of record and all
applicable zoning, municipal, county, state and federal laws, ordinances and
regulations governing and regulating the use of the Premises.

         TO HAVE AND TO HOLD THE SAME PREMISES, without any liability or
obligation on the part of Lessor to make any alterations, improvements or
repairs of any kind on or about the Premises, except as expressly provided
herein, for a term of ten (10) years, commencing on the first (1st) day of
April, 1999 (as such date may be extended due to force majeure or Lessee's
Delays, and herein referred to as the "Target Commencement Date"), and ending on
the thirty-first (31st) day of March, 2009, unless sooner terminated, in the
manner provided hereinafter, to be occupied and used by Lessee for general
office purposes and for no other purpose, subject to the covenants and
agreements hereinafter contained. The commencement of the term of this Lease
shall be the later of (i) fifteen (15) days after the delivery of possession of
Premises to Lessee, with the Tenant Improvements substantially completed or (ii)
the delivery to Lessee of an occupancy permit for the Premises. Lessee shall not
be required to accept delivery of possession prior to March 15, 1999. The
commencement of operations (and not mere fixturization) by Lessee in any portion
of the Premises shall be deemed to be acceptance of delivery of the Premises.

<PAGE>

ARTICLE I. BASE RENT: In consideration of the leasing aforesaid, Lessee agrees
to pay to Lessor, at c/o Opus West Management Corporation, 2415 East Camelback,
Road, Suite 840, Phoenix, Arizona 85016, or at such other place as Lessor from
time to time may designate in writing, an annual rental equal to the product of
the rentable area of the Premises multiplied by the rental rate for the
applicable portion of the term of this Lease, as hereinafter set forth, which
annual rental may sometimes hereinafter be referred to as the "Base Rent",
payable monthly, in advance, in equal monthly installments, commencing on the
first day of the term and continuing on the first day of each and every month
thereafter for the next succeeding months during the balance of the term:

<TABLE>
<CAPTION>
Applicable Portion                Annual Rental Rate Per
     of Term                       Rentable Square Foot
------------------                ----------------------
<S>                               <C>
Months 1 through 60                       $13.40
Months 61 through 120                      15.41
</TABLE>

If the term commences on a date other than the first day of a calendar month or
ends on a date other than the last day of a calendar month, monthly rent for the
first month of the term or the last month of the term, as the case may be, shall
be prorated based upon the ratio that the number of days in the term within such
month bears to the total number of days in such month.

         The amounts set forth above as the Annual Rental Rate per Rentable
Square Foot are subject to reduction, based upon any savings realized in the
"Total Project Costs", pursuant to Exhibit "E" attached hereto. For this
purpose, "Total Project Costs" shall include all costs incurred in the
acquisition, construction, development, and completion of the Office Complex,
including, without limitation, land acquisition and related costs, permits, use
fees, design, survey, engineering, environmental and soils consultants, legal,
financing and interest expenses, commissions, labor, materials, real estate and
other taxes, and allowances of three percent (3%) for a development fee, five
percent (5%) for overhead and profit and five percent (5%) for general
conditions. No other general contractor employed to construct this Office
Complex shall be entitled to charge such fees (although subcontractors and
suppliers may charge reasonable general conditions and overhead and profit
fees). (Notwithstanding the foregoing, to the extent the water use fees exceed
$1.00 per gross square foot based on the area of the Building, and to the extent
such excess results in the actual amount of the "Total Project Costs" (set forth
on Exhibit "E" attached hereto) exceeding the budget "Total Project Costs"
(before the Tenant Improvement Allowance), then such excess shall reduce the
Tenant Improvement Allowance otherwise available to Lessee under this Lease.)
Lessor shall be responsible to supply to the Premises the 2' x 4' layin
parabolic light fixtures, the 2' x 2' layin ceiling tile and the necessary
ceiling grid. To the extent the costs of supplying the materials listed in the
preceding sentence results in the actual amount of the "Total Project Costs"
(set forth on Exhibit "E" attached hereto) exceeding the budget "Total Project
Costs" (before the Tenant Improvement Allowance and the water use fees
referenced above), then such excess shall reduce the Tenant Improvement
Allowance otherwise available to Lessee under this Lease. Accordingly, within
sixty (60) days after the Commencement Date, Lessor shall provide to Lessee a
reconciliation of the Total Project Costs, and a computation of the Base Rent
(with reference to the 10.42% return) and including the 5% adjustment to the
land acquisition (which adjustment shall be subject to reduction in inverse
proportion to the increase in the initial area of the Premises, as designated by
Lessee herein), as illustrated in Exhibit "E" . In the event the resulting
"rent" is less than $13.40, then the Base Rent for months 1 through 60 shall be
such "rent", and the Base Rent for months 61 through 120 shall be 115% of the
reduced Base Rent amount. All work which is a component of the Total Project
Costs will be performed on an "open book" basis with Lessee (subject to
confidentiality covenants of Article XXV)

                                      -2-

<PAGE>

having access to all cost accounting records and books with respect to such work
upon reasonable advance notice to Lessee.

ARTICLE II. ADDITIONAL RENT: In addition to the Base Rent payable by Lessee
under the provisions of Article I hereof, Lessee shall pay to Lessor "Additional
Rent" as hereinafter provided for in this Article II. All sums under this
Article II and all other sums and charges required to be paid by Lessee under
this Lease (except Base Rent), however denoted, shall be deemed to be
"Additional Rent". If any such amounts or charges are not paid at the time
provided in this Lease, they shall nevertheless be collectible as Additional
Rent with the next installment of Base Rent falling due.

         For purposes of this Article II, the parties hereto agree upon the
following Definitions:

         A.       The term "Lease Year" shall mean each of those calendar years
                  commencing with and including the year during which the term
                  of this Lease commences, and ending with the calendar year
                  during which the term of this Lease (including any extensions
                  or renewals) terminates.

         B.       The term "Real Estate Taxes" shall mean and include all
                  personal property taxes of Lessor relating to Lessor's
                  personal property located in the Office Complex and used or
                  useful in connection with the operation and maintenance
                  thereof, real estate taxes and installments of special
                  assessments, including interest thereon, relating to the
                  Property and the Office Complex, and all other governmental
                  charges, general and special, ordinary and extraordinary,
                  foreseen as well as unforeseen, of any kind and nature
                  whatsoever, or other tax, however described, which is levied
                  or assessed by the United States of America or the state in
                  which the Office Complex is located or any political
                  subdivision thereof, against Lessor or all or any part of the
                  Office Complex as a result of Lessor's ownership of the
                  Property or the Office Complex, and payable during the
                  respective Lease Year. It shall not include any net income
                  tax, estate tax, inheritance tax, excess profit taxes,
                  franchise taxes, gift taxes, capital stock taxes, other taxes
                  applied or measured by Lessor's net income, and any items
                  included as Operating Expenses (defined below).

         C.       The term "Operating Expenses" shall mean and include all
                  expenses incurred with respect to the maintenance and
                  operation of the Property and the Office Complex as determined
                  by Lessor's accountant in accordance with generally accepted
                  accounting principles consistently followed, including, but
                  not limited to property, casualty or liability insurance (and
                  such other types of insurance typically procured by landlords
                  for office projects comparable to the Office Complex) premiums
                  (including insurance premiums for rent insurance), maintenance
                  and repair costs, steam, electricity, water, sewer, gas and
                  other utility charges, fuel, lighting (including the tubes,
                  ballasts and starters of fluorescent parabolic lights), window
                  washing, janitorial services, trash and rubbish removal, wages
                  payable to employees of Lessor whose duties are connected with
                  the operation and maintenance (and specifically excluding
                  administration) of the Property and the Office Complex (but
                  only for the portion of their time allocable to work related
                  to the Office Complex (and specifically excluding
                  administration) ), amounts paid to contractors or
                  subcontractors for work or services performed in connection
                  with the operation and maintenance of the Property and the
                  Office Complex, all costs of uniforms, supplies and materials
                  used in connection with the operation and maintenance of the
                  Property and the Office Complex, all payroll taxes,
                  unemployment insurance costs, vacation allowances and the

                                      -3-

<PAGE>

                  cost of providing disability insurance or benefits, pensions,
                  profit sharing benefits, hospitalization, retirement or other
                  so-called fringe benefits, and any other expense imposed on
                  Lessor or its contractors or subcontractors, pursuant to law
                  or pursuant to any collective bargaining agreement covering
                  such employees, all services, supplies, repairs, replacements
                  or other expenses for maintaining and operating the Office
                  Complex, reasonable attorneys' fees and costs in connection
                  with appeal or contest of real estate or other taxes or
                  levies, and such other expenses as may be ordinarily incurred
                  in the operation and maintenance of an office complex and not
                  specifically set forth herein, including reasonable management
                  fees (which, as charged to Lessee, shall not exceed two and
                  one-half percent (2 1/2%) of the Base Rent plus Additional
                  Rent) and the costs of a building office at the Office
                  Complex. Lessor agrees, however, that a building office shall
                  not be at the Office Complex, unless located in Phase II, or
                  otherwise approved by Lessee. Lessee shall have the right to
                  approve the janitorial service contractor. The term "Operating
                  Expenses" shall not include any capital improvement to the
                  Office Complex other than replacements required for normal
                  maintenance and repair, nor shall it include repairs,
                  restoration or other work occasioned by fire, windstorm or
                  other insured casualty, expenses incurred in leasing or
                  procuring tenants, leasing commissions, advertising expenses,
                  expenses for renovating space for new tenants, or for any cost
                  or expense incurred solely for the benefit of a tenant or
                  occupant at the Office Complex, other than Lessee, legal
                  expenses incident to enforcement by Lessor of the terms of any
                  lease, interest or principal payments on any mortgage or other
                  indebtedness of Lessor, compensation paid to any employee of
                  Lessor above the grade of building superintendent,
                  depreciation allowance or expense. Notwithstanding the
                  foregoing, in the event Lessor installs equipment in or makes
                  improvements or alterations to the Office Complex which are
                  for the purpose of reducing energy costs, maintenance costs or
                  other Operating Expenses (and which, based upon reasonable
                  evidence, do reduce such costs and expenses) or which are
                  required under any governmental laws, regulations or
                  ordinances which were not required at the date of commencement
                  of the term of this Lease, Lessor may include in Operating
                  Expenses reasonable charges for interest on such investment
                  and reasonable charges for depreciation on the same so as to
                  amortize such investment over the reasonable life of such
                  equipment, improvement or alteration on a straight line basis.
                  Operating Expenses shall also be deemed to include expenses
                  incurred by Lessor in connection with city sidewalks adjacent
                  to the Property and any pedestrian walkway system (either
                  above or below ground) or other public facility to which
                  Lessor or the Office Complex is from time to time subject in
                  connection with operations of the Property and the Office
                  Complex. The term "Operating Expenses" shall also include any
                  assessments or fees or other charges imposed upon the Office
                  Complex, or upon Lessor as a result of Lessor's ownership of
                  the Office Complex, under any encumbrances, covenants,
                  conditions, restrictions or other matters now of record or
                  hereafter recorded against the Office Complex. Lessor shall
                  use commercially reasonable efforts to maintain Operating
                  Expenses (and each component thereof) at competitive, market
                  rates, and to cooperate with Lessee in this regard, including
                  re-bidding any service or cost-item deemed, by Lessee, to be
                  above competitive, market rates. Lessee's failure to assess
                  any charges to Lessee of any additional, or previously
                  unbilled Operating Expenses or Real Estate Taxes for a Lease
                  Year by

                                      -4-

<PAGE>

                  December 31 of the following calendar year shall be deemed a
                  waiver by Lessee of its right to assess and collect such
                  additional unbilled amount.

         D.       The term "Lessee's Pro Rata Share of Real Estate Taxes and
                  Operating Expenses" shall mean the product of (i) the
                  percentage obtained by dividing the rentable area of the
                  Premises by the rentable area of the Office Complex, and (ii)
                  the Real Estate Taxes and Operating Expenses for the
                  applicable Lease Year; provided, however, the percentage used
                  to calculate Lessee's Pro Rata Share of Real Estate Taxes and
                  Operating Expenses shall be amended each Lease Year to the
                  greater of the following: (i) if the total rentable area
                  leased in the Office Complex (pursuant to leases under which
                  the term has commenced) is ninety-five percent (95%) or less
                  than the rentable area of the Office Complex, the percentage
                  shall be that which the rentable area of the Premises bears to
                  ninety-five percent (95%) of the total rentable area of the
                  Office Complex for such Lease Year; or (ii) if the total
                  rentable area leased in the Office Complex (pursuant to leases
                  under which the term has commenced) is greater than
                  ninety-five percent (95%), the percentage shall be that which
                  the rentable area of the Premises bears to the actual rentable
                  area of the Office Complex for such Lease Year. Rentable area
                  shall in no event include basement storage space or garage
                  space.

         E.       Anything herein to the contrary notwithstanding, it is agreed
                  that in the event the Office Complex is not fully occupied
                  during any calendar year or any Lease Year, a reasonable and
                  equitable adjustment shall be made by Lessor in computing the
                  Operating Expenses for such year so that the Operating
                  Expenses shall be adjusted to the amount that would have been
                  incurred had the Office Complex been fully occupied during
                  such year. Any such adjustment shall be consistent with
                  prudent property management practices, shall be disclosed in
                  writing to Lessee in each Lease Year's reconciliation
                  statement of Operating Expenses provided to Lessee, and shall
                  not conflict with the provisions of Article II.D., above.

         As to each Lease Year during the term of this Lease, Lessor shall
estimate for each such Lease Year (i) the total amount of Real Estate Taxes and
Operating Expenses; (ii) Lessee's Pro Rata Share of Real Estate Taxes and
Operating Expenses; and (iii) the computation of the annual and monthly rental
payable during such Lease Year as a result of increases or decreases in Lessee's
Pro Rata Share of Real Estate Taxes and Operating Expenses. Said estimate shall
be in writing and shall be delivered or mailed to Lessee at the Premises. Lessor
shall endeavor to deliver said estimate no later than April 30 of each Lease
Year. As of the date of this Lease, Lessor estimates the total amount of Real
Estate Taxes and Operating Expenses for the first lease Year of Operation of the
Office Complex to be approximately $6.00, per rentable square foot.

         Lessee shall pay, as Additional Rent, the amount of Lessee's Pro Rata
Share of Real Estate Taxes and Operating Expenses for each Lease Year, so
estimated, in equal monthly installments, in advance, on the first day of each
month during each applicable Lease Year. In the event that said estimate is
delivered to Lessee after the first day of January of the applicable Lease Year,
said amount, so estimated, shall be payable as Additional Rent, in equal monthly
installments, in advance, on the first day of each month over the balance of
such Lease Year, with the number of installments being equal to the number of
full calendar months remaining in such Lease Year.

         From time to time during any applicable Lease Year, Lessor may
re-estimate the amount of Real Estate Taxes and Operating Expenses

                                      -5-

<PAGE>

and Lessee's Pro Rata Share thereof, and in such event Lessor shall notify
Lessee, in writing, of such re-estimate in the manner above set forth and fix
monthly installments for the then remaining balance of such Lease Year in an
amount sufficient to pay the re-estimated amount over the balance of such Lease
Year after giving credit for payments made by Lessee on the previous estimate.

         Upon completion of each Lease Year (and in any event prior to the
immediately succeeding June 30), Lessor shall cause its accountants to determine
the actual amount of Real Estate Taxes and Operating Expenses for such Lease
Year and Lessee's Pro Rata Share thereof and deliver a written certification of
the amounts thereof (in reasonable detail) to Lessee after the end of each Lease
Year. If Lessee has paid less than its Pro Rata Share of Real Estate Taxes and
Operating Expenses for any Lease Year, Lessee shall pay the balance of its Pro
Rata Share of the same within thirty (30) days after the receipt of such
statement. If Lessee has paid more than its Pro Rata Share of Real Estate Taxes
and Operating Expenses for any Lease Year, Lessor shall, at Lessee's option,
either (i) refund such excess, or (ii) credit such excess against the most
current monthly installment or installments due Lessor for its estimate of
Lessee's Pro Rata Share of Real Estate Taxes and Operating Expenses for the next
following Lease Year. A pro rata adjustment shall be made for a fractional Lease
Year occurring during the term of this Lease or any renewal or extension thereof
based upon the number of days of the term of this Lease during said Lease Year
as compared to three hundred sixty-five (365) days and all additional sums
payable by Lessee or credits due Lessee as a result of the provisions of this
Article II shall be adjusted accordingly.

         Further, Lessee shall pay, also as Additional Rent, all other sums and
charges required to be paid by Lessee under this Lease, and any tax or excise on
rents, gross receipts tax, transaction privilege tax or other tax, however
described, which is levied or assessed by the United States of America or the
state in which the Office Complex is located or any political subdivision
thereof, or any city or municipality, against Lessor in respect to the Base
Rent, Additional Rent, or other charges reserved under this Lease or as a result
of Lessor's receipt of such rents or other charges accruing under this Lease;
provided, however, Lessee shall have no obligation to pay net income, estate or
inheritance taxes of Lessor.

ARTICLE III. LATE CHARGE AND OVERDUE AMOUNTS - RENT INDEPENDENT: Lessee shall
pay to Lessor, as liquidated damages, a late charge equal to five percent (5%)
of any amount not paid on the date when the same is due to compensate Lessor for
its costs in connection with such late payment by Lessee. Notwithstanding the
preceding sentence, as a condition to Lessor's assessment and collection of said
late charge, the late charge shall not be due unless Lessee fails to pay any
amount within ten (10) days after notice from lessor; however, said condition
shall only apply to the first two (2) delinquencies during any calendar year
during the term of this Lease. The assessment or collection of a late charge
hereunder shall not constitute the waiver by Lessor of a default by Lessee under
this Lease and shall not bar the exercise by Lessor of any rights or remedies
available under this Lease. In addition, any installment of Base Rent,
Additional Rent or other charges to be paid by Lessee accruing under the
provisions of this Lease, which shall not be paid when due, shall bear interest
at the rate of one percent (1%) per month from the date which is thirty (30)
days after the date when the same is due until the same shall be paid, but if
such rate exceeds the maximum interest rate permitted by law, such rate shall be
reduced to the highest rate allowed by law under the circumstances. Lessee's
covenants to pay the Base Rent and the Additional Rent are independent of any
other covenant, condition, provision or agreement herein contained. Nothing
herein contained shall be deemed to suspend or delay the payment of any amount
of money or charge at the time the same becomes due and payable hereunder, or
limit any other remedy of Lessor. Base Rent

                                      -6-

<PAGE>

and Additional Rent are sometimes collectively referred to as "rent". Rent shall
be payable without deduction, offset, prior notice or demand, in lawful money of
the United States, except as expressly provided herein.

ARTICLE IV. POSSESSION OF PREMISES: Lessor shall use commercially reasonable and
diligent efforts to construct and deliver the Premises as required by the
provisions of this Lease. If Lessor shall be unable to give possession of the
Premises on the Target Commencement Date because the construction of the Office
Complex or the completion of the Premises has not been sufficiently completed to
make the Premises ready for occupancy or if Lessor shall fail to provide a
certificate of occupancy, or for any other reason, Lessor shall not be subject
to any claims, damages or liabilities for the failure to give possession on said
date except as expressly set forth in this Article IV. Under said circumstances,
the rent reserved and covenant to pay same shall not commence until possession
of the Premises is given or the Premises are ready for occupancy, whichever is
earlier. Failure to give possession on the date of commencement of the term
shall in no way affect the validity of this Lease or the obligations of Lessee
hereunder; provided, however, that if the date of commencement of the initial
term is delayed beyond the Target Commencement Date, the expiration date of the
initial term shall be extended to provide for a full ten-year initial term of
this Lease. If Lessee is given and accepts possession of the Premises on a date
earlier than the date above specified for commencement of the term, and
commences operating its business therefrom (and not merely installing equipment
and fixtures), the rent reserved herein and all covenants, agreements and
obligations herein and the term of this Lease shall commence on the date that
possession of the Premises is given to Lessee.

         The acceptance of possession by Lessee shall be deemed conclusively to
establish that the Premises and all other improvements of the Office Complex
required to be constructed by Lessor for use thereof by Lessee hereunder have
been completed at such time to Lessee's satisfaction and in conformity with the
provisions of this Lease in all respects unless Lessee notifies Lessor in
writing within sixty (60) days after commencement of the term as to any items
not completed. Lessee waives any claim as to matters not listed in said notice.
Lessor shall exercise commercially reasonable efforts to complete, repair or
replace any aspect of the Premises set forth in said notice, within sixty (60)
days of said notice. Lessee acknowledges that neither Lessor nor any agent of
Lessor has made any representation or warranty with respect to the Premises or
the Office Complex or with respect to the suitability or fitness of either for
the conduct of Lessee's business or for any other purpose except as expressly
set forth herein. Nothing contained in this Article shall affect the
commencement of the Lease term or the obligation of Lessee to pay any rent due
under this Lease.

         On or before February 1, 1999, Lessor shall notify Lessee (said notice
herein referred to as the "Target Notice") of the "Target Delivery Date"
(defined for purposes herein as that date when Lessor shall deliver
non-exclusive possession of the Premises to Lessee with substantial completion
of the Tenant Improvements at which time Lessee may commence installation of its
fixtures and equipment) as well as the Target Commencement Date (which, in
absence of Lessee's written approval, shall be not less than fifteen (15) days
after the Target Delivery Date). If Lessor fails to provide the Target Notice as
required and such failure continues for five (5) business days after notice of
such failure from Lessee (which notice shall describe the obligation of Lessor
to provide said notice, and the resulting termination right (described below) of
Lessee), then Lessee, by subsequent notice (given prior to Lessor's Target
Notice) may elect to, and thereby, terminate this Lease.

                                      -7-

<PAGE>

         Tenant's existing premises for its corporate headquarters at 11811 N.
Tatum Boulevard (the "Existing Premises"), is governed and created by several
leases, is comprised of 55,977 rentable square feet, is scheduled to expire on
March 31, 1999, and has an average base rent (before addition of the triple net
charges) of $17.33 per rentable square foot. Tenant shall use diligent efforts
to reach an agreement with its existing landlord to allow a holdover of such
existing premises, at no extraordinary penalty or additional cost, until the
Target Commencement Date, and to thereby mitigate the amount of the
reimbursement obligation of Lessor described in the next paragraph. Lessor
acknowledges that as of the date of this Lease, said landlord has refused to
agree to any holdover arrangement. However, Lessor and Lessee shall continue to
cooperate with each other in negotiating with said landlord to provide for
holdover rights deemed acceptable to Lessor and Lessee.

         If the Target Notice indicates a Target Delivery Date which is a date
beyond March 15, 1999, or a Target Commencement Date which is a date beyond
April 1, 1999, then Lessor shall assist Lessee to procure substitute premises in
a "Class 'B'" or better quality office project (as such category is generally
understood as of the date hereof), of approximately the same size as the
Existing Premises at an alternate location in the greater metropolitan Phoenix
area for Lessee's benefit, until the Target Commencement Date. Lessor shall
reimburse Lessee (within twenty (20) days of receipt of Lessee's demand
therefore with reasonable, supporting documentation) for Lessee's out of pocket,
verified costs: (i) directly related to relocating to said substitute premises
from the Existing Premises; and (ii) for leasing said substitute premises, to
the extent the total rent rate payable for the substitute premises exceeds the
total rent rate payable at the time of expiration of the leases for the Existing
Premises (collectively, the "Reimbursement Obligation"); the parties intend by
the foregoing provision to have Lessor pay for the additional costs (as
specified in (i) and (ii) above) incurred by Lessee as a result of Lessor's
inability to complete and deliver the Premises by the dates set forth in the
first sentence of this paragraph.

         If the actual substantial completion and delivery to Lessee of the
Premises occurs after the Target Delivery Date, and the actual commencement of
the term of this Lease occurs after the Target Commencement Date (as each
"Target" date is set forth in the Target Notice), then Lessor shall also pay to
Lessee, the sum of $40,000.00 for each month (and prorated for any partial
months) transpiring between the Target Commencement Date and the actual
commencement of the term of this Lease, and such amount shall be included (in
addition to the amounts described in the preceding paragraph) in the
"Reimbursement Obligation".

         If by December 31, 1998, a construction and building permit has not
been issued for the Building (exclusive of the Tenant Improvements for the
Premises) despite the commercially reasonable efforts of Lessor, then either
party, by notice to the other within fifteen (15) days of such date, may
terminate this Lease, in which case, neither party shall have any further
liability to the other, and Lessor shall have no Reimbursement Obligation.
Further, if by September 15, 1999, the Premises have not been substantially
completed and all required occupancy permits have not been provided, then
Lessor's Reimbursement Obligation shall cease accruing as of said date, and
further Lessee may elect to terminate this Lease by notice to Lessor within
fifteen (15) days of such date.

         All obligations of Lessor in this Lease to plan, develop, improve and
construct the Office Complex, including the Premises, are subject to acts of
God, strikes, labor troubles, failure or refusal of governmental authorities to
timely issue permits or approvals or conduct reviews or inspections (despite the
commercially reasonable efforts of Lessor), civil disorder, inability to procure
materials (despite the commercially reasonable efforts of Lessor), restrictive
governmental laws or regulations,

                                      -8-

<PAGE>

acts or omissions of Lessee which interfere with the discharge by Lessor of its
obligations, the failure or refusal of Lessee to act or respond in a timely
manner, or other causes beyond Lessor's reasonable control ("force majeure").
To the extent the substantial completion of the Office Complex, including the
Premises, is delayed because of causes force majeure, then the dates applicable
for the Target Delivery Date, the Target Commencement Date, the dates set forth
in the preceding paragraph, and all other dates set forth in this Lease which
relate to the construction and delivery of the Office Complex and the Premises,
shall be postponed in an amount corresponding to the amount of the delays, and
in addition, any Reimbursement Obligation of Lessor thereby resulting shall not
be the responsibility of Lessor, notwithstanding anything in this Lease to the
contrary.

         Lessee acknowledges that except for certain conduits, trenches and
related facilities to be constructed by Lessor (to the extent described under
the plans and specifications described on Exhibit "F", hereto) intended to
accommodate the telephone service to the Office Complex, the failure to have
operating telephone service to the Office Complex shall not affect the
commencement of the term of this Lease, or the determination of the substantial
completion of the Premises.

ARTICLE V. SERVICES: Subject to the provisions of Article II hereof, Lessor
shall provide the following services on all days excepting Saturdays, Sundays,
holidays, and as otherwise stated:

         A.       Nightly janitorial services Monday through Friday in and about
                  the Premises; provided, however, Lessor may, but shall not be
                  obligated to, elect to furnish janitorial service on Saturday
                  or Sunday in lieu of furnishing such service on Friday. The
                  janitorial services furnished to the Premises shall include
                  normal cleaning and upkeep services, normal removal of trash
                  and rubbish, vacuuming and spot cleaning of carpeting,
                  maintenance of towels, tissue and other restroom supplies and
                  such other work as is customarily performed in connection with
                  such nightly janitorial services in an office complex similar
                  in construction, general location, use and occupancy to the
                  Office Complex. Lessor shall also provide periodic interior
                  and exterior window washing and cleaning and waxing of
                  uncarpeted floors in accordance with Lessor's reasonable
                  schedule.

         B.       Electrical energy will be provided for lighting and operation
                  of office machines, air conditioning, and heating as required
                  for normal office usage during the normal working hours set
                  forth in subparagraph C of this Article. Office machines will
                  include electric typewriters and other office equipment of
                  similar low electrical consumption. This does not include
                  special lighting in excess of building standard (2.2 watts per
                  square foot installed), or any other item of electrical
                  equipment which singularly consumes more than 0.5 kilowatts
                  per hour at rated capacity or requires a voltage other than
                  one hundred twenty (120) volts single phase. If electrical
                  consumption exceeds the requirement of normal office use as
                  specified above (such as in a computer room), Lessor reserves
                  the right to include and Lessee shall pay upon receipt of
                  invoice, a charge based on the average cost per unit of
                  electricity for the Office Complex applied to the excess use
                  determined by an engineer selected by Lessor and/or by
                  submeter. At the option of either Lessor or Lessee, a submeter
                  may be provided and installed at Lessee's expense, if
                  allowable under law and local utility regulations. Lessee
                  shall pay the cost of all equipment and of the installation of
                  all facilities provided and installed by Lessor to provide
                  such electrical capacity in excess of the above normal office
                  standards. Lessee shall not make any installation requiring

                                      -9-

<PAGE>

                  excess electrical energy without first receiving Lessor's
                  written consent thereto, which shall not be unreasonably
                  withheld; and provided further that Lessee shall pay all costs
                  of installation of facilities necessary to furnish such excess
                  capacity and for such increased electrical usage. All electric
                  lighting bulbs for specialized lighting within the Premises
                  shall be replaced by Lessor at the expense of Lessee and shall
                  be paid by Lessee upon receipt of invoice from Lessor as rent.
                  The electrical service required of Lessor by this subparagraph
                  B, and electricity for other uses consented to by Lessor,
                  shall be available at all times subject to the requirement
                  that Lessee pay for usage in excess of the electrical service
                  to be provided pursuant to the terms of this subparagraph B.

         C.       Heat and air conditioning, when necessary in Lessor's
                  reasonable judgment (consistent with standards of prudent
                  property management applicable for comparable office
                  projects), for normal comfort, from 7 o'clock A.M. to 6
                  o'clock P.M. on non-holiday weekdays, and on Saturdays which
                  are not holidays, from 7 o'clock A.M. to 1 o'clock P.M. Air
                  conditioning to the Premises is to be provided based on
                  standard lighting and normal incidental office use only.
                  During other hours, Lessor shall provide such amounts of
                  heating and air conditioning within designated and configured
                  (based upon the HVAC distribution system) zones within the
                  Premises, upon reasonable advance notice from Lessee to
                  Lessor, which advance notice shall not be less than
                  twenty-four (24) hours; and Lessee, upon presentation of a
                  bill therefor, shall pay Lessor for such service on an hourly
                  basis at the then prevailing rates as established by Lessor.
                  As of the date of this Lease, said rate shall be $2.50 per
                  hour per air distribution zone, subject to reasonable provider
                  increases as a result of increased utility or other charges.

         D.       Hot and cold water from the regular building outlets for
                  lavatory and restrooms and for drinking purposes, at all
                  times.

         E.       Passenger elevator service in common with other tenants to be
                  provided by automatic elevators, at all times. Lessor shall
                  have the right to restrict the use of elevators for freight
                  purposes to the freight elevator and to hours to be determined
                  by Lessor. Lessor shall have the right to limit the number of
                  elevators to be in operation on Saturdays, Sundays and
                  holidays.

         F.       Maintenance in good order, condition and repair of the parking
                  facilities and all driveways leading thereto and keeping the
                  same free from any unreasonable accumulation of snow. Lessor
                  shall keep and maintain the landscaped area and parking
                  facilities in a neat and orderly condition. Lessor reserves
                  the right to designate areas of the appurtenant parking
                  facilities where Lessee, its agents, employees and invitees
                  shall park and may exclude Lessee and its agents, employees
                  and invitees from parking in other areas as designated by
                  Lessor; provided, however, Lessor shall not be liable to
                  Lessee for the failure of any tenant or its invitees,
                  employees, agents or customers to abide by Lessor's
                  designations or restrictions. Lessee is aware that Lessor may
                  be required to designate certain parking stalls due to
                  governmental request or order to accommodate car or van
                  poolers.

         G.       Lessee shall be solely responsible for the direct payment of
                  all utilities which are separately metered or separately
                  charged (electric, natural gas (if any), telephone, cable
                  television (if any) and any other special

                                      -10-

<PAGE>

                  utility requirements of Lessee), if any, to the Premises or to
                  Lessee and shall make such payments to the respective utility
                  companies prior to delinquency. Such amounts shall not be
                  included as Operating Expenses.

         No interruption in, or temporary stoppage of, any of the aforesaid
services caused by repairs, renewals, improvements, alterations, strikes,
lockouts, labor controversy, accident, inability to obtain fuel or supplies, or
other causes shall be deemed an eviction or disturbance of Lessee's use and
possession, or render Lessor liable for damages, by abatement of rent or
otherwise or relieve Lessee from any obligation herein set forth; provided,
however, that if there is a localized interruption in, or localized temporary
stoppage of, any of the aforesaid services in the Premises (as opposed to an
interruption in the general vicinity of the Office Complex not under Lessor's
control), and if such interruption or temporary stoppage is within the sole
control of Lessor and, after notice to Lessor, Lessor does not diligently
attempt and continue diligent attempts to cure such interruption or temporary
stoppage, then Lessee shall be entitled to a reasonable abatement of Base Rent
and Additional Rent if after twenty-four (24) hours after Lessor's receipt of
notice, Lessor's efforts to cure same have failed. In no event shall Lessor be
required to provide any heat, air conditioning, electricity or other service in
excess of that permitted by voluntary or involuntary guidelines or laws,
ordinances or regulations of governmental authority. Lessor reserves the right,
from time to time, to make reasonable and non-discriminatory modifications to
the above standards for utilities and services.

         Lessee shall not, without the prior written consent of Lessor, use any
apparatus or device in or about the Premises which shall cause any substantial
noise or vibration or which will increase the amount of electricity or water, if
any, usually furnished or supplied for use of the Premises as general office
space. Lessee shall not connect with electric current or water pipes, except
through existing electrical or water outlets already in the Premises, any
apparatus or device for the purposes of using electric current or water.

ARTICLE VI. INSURANCE: Lessor shall keep the Office Complex insured for the
benefit of Lessor in an amount equivalent to the full replacement value thereof
(excluding foundation, grading and excavation costs and a commercially
reasonable deductible) against:

         (a)      loss or damage by fire; and

         (b)      such other risk or risks of a similar or dissimilar nature as
                  are now or may be customarily covered with respect to
                  buildings and improvements similar in construction, general
                  location, use, occupancy and design to the Office Complex,
                  including, but without limiting the generality of the
                  foregoing, windstorms, hail, explosion, vandalism, malicious
                  mischief, civil commotion and such other coverage as may be
                  deemed necessary by Lessor, provided such additional coverage
                  is obtainable and provided such additional coverage is such as
                  is customarily carried with respect to buildings and
                  improvements similar in construction, general location, use,
                  occupancy and design to the Office Complex.

         These insurance provisions shall in no way limit or modify any of the
obligations of Lessee under any provision of this Lease. Lessor agrees that such
policy or policies of insurance shall permit releases of liability as provided
herein and/or waiver of subrogation clause as to Lessee, and Lessor waives,
releases and discharges Lessee from all claims or demands whatsoever which
Lessor may have or acquire arising out of damage to or destruction of the Office
Complex or loss of use thereof occasioned by fire or other casualty, whether
such claim or demand may arise because of the negligence or fault of Lessee or
its agents, employees,

                                      -11-

<PAGE>

customers or business invitees, or otherwise, and Lessor agrees to look to the
insurance coverage only in the event of such loss. Insurance premiums paid
thereon shall be a portion of the "Operating Expenses" described in Article II
hereof. Notwithstanding the above, in the event a release of Lessee or waiver of
subrogation as to Lessee (without invalidation of coverage) becomes generally
unavailable in insurance policies as to commercial office projects similar to
the Office Complex, the release and any waiver of subrogation above provided for
shall cease upon written notice by Lessor to Lessee of such event. Thereafter,
Lessee may, upon written notice to Lessor, require Lessor to secure a waiver of
subrogation as to Lessee if (a) a right to waive subrogation as to Lessee
thereafter becomes available without increased premium, or (b) a right to waive
subrogation as to Lessee becomes available and Lessee pays any increased premium
required in connection therewith.

         Lessee shall keep all of its machinery, equipment, furniture, fixtures,
personal property (including also property under the care, custody or control of
Lessee) and business interests which may be located in, upon or about the
Premises insured for the benefit of Lessee in an amount equivalent to the full
replacement value or insurable value thereof against:

         (a)      loss or damage by fire; and

         (b)      such other risk or risks of a similar or dissimilar nature as
                  are now, or may in the future be, customarily covered with
                  respect to a tenant's machinery, equipment, furniture,
                  fixtures, personal property and business located in a building
                  similar in construction, general location, use, occupancy and
                  design to the Office Complex, including, but without limiting
                  the generality of the foregoing, windstorms, hail, explosions,
                  vandalism, theft, malicious mischief, civil commotion and such
                  other coverage as Lessee may deem appropriate or necessary.

         Lessee agrees that such policy or policies of insurance shall permit
releases of liability as provided herein and/or waiver of subrogation clause as
to Lessor, and Lessee waives, releases and discharges Lessor and its agents,
employees and contractors from all claims or demands whatsoever which Lessee may
have or acquire arising out of damage to or destruction of the machinery,
equipment, furniture, fixtures, personal property and loss of use thereof
occasioned by fire or other casualty, whether such claim or demand may arise
because of the negligence or fault of Lessor or its agents, employees,
contractors or otherwise, and Lessee agrees to look to the insurance coverage
only in the event of such loss.

         Lessee shall be permitted to "self-insure" or to establish deductible
limits under such policies, provided, however, that the amount of such retained
risk shall not exceed, at any time, ten percent (10%) of Lessee's Tangible Net
Worth (defined in the last paragraph of this Article), as the same may change
from time to time. Lessee agrees that such policy or policies of insurance shall
permit releases of liability as provided herein and/or waiver of subrogation
clause as to Lessor, and Lessee waives, releases and discharges Lessor and its
agents, employees and contractors from all claims or demands whatsoever which
Lessee may have or acquire arising out of damage to or destruction of the
machinery, equipment, furniture, fixtures, personal property and loss of use
thereof occasioned by fire or other casualty, whether such claim or demand may
arise because of the negligence or fault of Lessor or its agents, employees,
contractors or otherwise, and Lessee agrees to look to the insurance coverage
only in the event of such loss.

         Lessor shall, as a portion of the Operating Expenses defined in Article
II, maintain, for its benefit and the benefit of its managing agent, general
public liability insurance against claims for personal injury, death or property
damage occurring upon, in or about the Complex, such insurance to afford
protection to Lessor

                                      -12-
<PAGE>

and its managing agent in such amounts as Lessor deems commercially reasonable
and comparable to the amounts maintained for projects similar to the Complex,
but in no event less than $2,000,000.00 of total insurance coverage for the
commercial general liability policy.

         Lessee shall, at Lessee's sole cost and expense but for the mutual
benefit of Lessor, its managing agent and Lessee, maintain general public
liability insurance against claims for personal injury, death or property damage
occurring upon, in or about the Premises, such insurance to afford protection to
Lessor, its managing agent and Lessee to the limit of not less than One Million
and No/100 Dollars ($1,000,000.00) in respect to the injury or death to a single
person, and to the limit of not less than Two Million and No/100 Dollars
($2,000,000.00) in respect to any one accident, and to the limit of not less
than Five Hundred Thousand and No/100 Dollars ($500,000.00) in respect to any
property damage or any greater amounts, if Lessee procures insurance with
greater limits. Such policies of insurance shall be written in companies
reasonably satisfactory to Lessor, naming Lessor and its managing agent as
additional insureds thereunder, and such policies, or a memorandum or
certificate of such insurance, shall be delivered to Lessor, which certificate
shall require the insurance underwriter to notify Lessor, not less than thirty
(30) days prior to any cancellation or termination of such insurance coverage.
At such time as insurance limits required of tenants in office buildings in the
area in which the Office Complex is located are generally increased to greater
amounts, Lessor shall have the right to require such greater limits as may then
be customary. Lessee agrees to include in such policy the contractual liability
coverage insuring Lessee's indemnification obligations provided for herein. Any
such coverage shall be deemed primary to any liability coverage secured by
Lessor. Such insurance shall also afford coverage for all claims based upon
acts, omissions, injury or damage, which claims occurred or arose (or the onset
of which occurred or arose) in whole or in part during the policy period.

         Lessee agrees to indemnify, protect, defend and hold harmless Lessor
and Lessor's partners, shareholders, employees, lender and managing agent
harmless from and against any and all claims, losses, costs, liabilities,
actions and damages, including without limitation attorneys' fees and costs, by
or on behalf of any person or persons, firm or firms, corporation or
corporations, arising from any breach or default on the part of Lessee in the
performance of any covenant or agreement on the part of Lessee to be performed,
pursuant to the terms of this Lease, or arising from any act or negligence on
the part of Lessee or its agents, contractors, servants, employees or licensees,
or arising from any accident, injury or damage to the extent caused by Lessee or
its agents or employees to any person, firm or corporation occurring during the
term of this Lease or any renewal thereof, in or about the Premises and the
Office Complex, and from and against all costs, reasonable counsel fees,
expenses and liabilities incurred in or about any such claim or action or
proceeding brought thereon; and in case any action or proceeding be brought
against Lessor or its managing agent, by reason of any such claim, Lessee upon
notice from Lessor, covenants to resist or defend such action or proceeding by
counsel reasonably satisfactory to Lessor.

         Lessee agrees, to the extent not expressly prohibited by law, that
Lessor and Lessor's agents, employees and servants shall not be liable, and
Lessee waives all claims for damage to property and business sustained during
the term of this Lease by Lessee occurring in or about the Office Complex,
resulting directly or indirectly from any existing or future condition, defect,
matter or thing in the Premises, the Office Complex or any part thereof, or from
equipment or appurtenances becoming out of repair, or from accident, or from any
occurrence or act or omission of Lessor, Lessor's agents, employees or servants
(other than as a result of the gross negligence or willful misconduct of Lessor,
its agents, employees or servants), any tenant or occupant of the Office

                                      -13-

<PAGE>

Complex or any other person. This paragraph shall apply especially, but not
exclusively, to damage caused as aforesaid or by the flooding of basements or
other subsurface areas, or by refrigerators, sprinkling devices, air
conditioning apparatus, water, snow, frost, steam, excessive heat or cold,
falling plaster, broken glass, sewage, gas, odors or noise, or the bursting or
leaking of pipes or plumbing fixtures, and shall apply equally, whether any such
damage results from the act or omission of other tenants or occupants in the
Office Complex or any other persons, and whether such damage be caused by or
result from any of the aforesaid, or shall be caused by or result from other
circumstances of a similar or dissimilar nature.

         Anything herein to the contrary notwithstanding, in the event any
damage to the Office Complex results from any act or omission of Lessee or its
agents, employees or invitees, and all or any portion of Lessor's loss is within
the "deductible" portion of Lessor's insurance coverage, Lessee shall pay to
Lessor the amount of such deductible loss (not to exceed $1,000 per event). All
property in the Office Complex or on the Premises belonging to Lessee or its
agents, employees or invitees or otherwise located at the Premises, shall be at
the risk of Lessee only, and Lessor shall not be liable for damage thereto or
theft, misappropriation or loss thereof, and Lessee agrees to defend and hold
Lessor and Lessor's agents, employees and servants harmless and indemnify them
against claims and liability for injuries to such property. Lessee shall not do
or permit anything to be done in or about the Premises nor bring or keep
anything therein which will in any way increase the existing rate of or affect
in any other way any fire or other insurance upon the Office Complex or any of
its contents, or cause a cancellation of any insurance policy covering the
Office Complex or any of its contents. Notwithstanding anything to the contrary
contained herein, Lessee shall within thirty (30) days of demand, reimburse
Lessor for the full amount of any additional premium charged for such policy by
reason of Lessee's failure to comply with the provisions of this paragraph, it
being understood that such demand for reimbursement shall not be Lessor's
exclusive remedy. Lessee shall promptly, upon demand, reimburse Lessor for any
additional premium charged for any such policy by reason of Lessee's failure to
comply with the provisions of this Article.

         In the event Lessee fails to provide Lessor with evidence of insurance
required under this Article VI, Lessor may, but shall not be obligated to, and
after ten (10) days demand upon Lessee, and without waiving or releasing Lessee
from any obligation contained in this Lease, obtain such insurance and Lessee
agrees to repay, upon demand, all such sums incurred by Lessor in effecting such
insurance. All such sums shall become a part of the Additional Rent payable
hereunder, but no such payment by Lessor shall relieve Lessee from any default
under this Lease.

         For purposes hereof, "Tangible Net Worth" shall mean equity of Lessee
and its subsidiaries on a consolidated basis determined in accordance with GAAP,
minus the net book value of all intangible assets including, without limitation,
good will, trademarks, trade names, service marks, brand names, copyrights,
patents and unamortized debt discount and expense, organizational expenses and
the excess of the equity in any subsidiary over the cost of the investment in
such subsidiary.

ARTICLE VII. CERTAIN RIGHTS RESERVED BY LESSOR: Lessor reserves the following
rights exercisable without notice and without liability to Lessee and without
effecting an eviction, constructive or actual, or disturbance of Lessee's use or
possession, or giving rise to any claim for setoff or abatement of rent:

         A.       Subject to Article XXXVI, below, to control, install, affix
                  and maintain any and all signs on the Property, or on the
                  exterior of the Office Complex and in the corridors, entrances
                  and other common areas thereof,

                                      -14-

<PAGE>

                  except those signs within the Premises not visible from
                  outside the Premises.

         B.       To reasonably designate, limit, restrict and control any
                  service in or to the Office Complex, including but not limited
                  to the designation of sources from which Lessee may obtain
                  sign painting and lettering (however, Lessor agrees not to
                  unreasonably withhold its consent to Lessee's designation).
                  Any restriction, designation, limitation or control imposed by
                  reason of this subparagraph shall be imposed uniformly on
                  Lessee and other tenants occupying space in the Office
                  Complex, and pursuant to the comprehensive sign program,
                  applicable to the Office Complex, which shall be subject to
                  Lessee's reasonable consent.

         C.       To retain at all times and to use in appropriate instances
                  (which, except during an emergency, shall require reasonable
                  prior notice) keys to all doors within and into the Premises.
                  No locks shall be changed without the prior written consent of
                  Lessor. This provision shall not apply to Lessee's safes or
                  other areas maintained by Lessee for the safety and security
                  of monies, securities, negotiable instruments or similar
                  items.

         D.       To make repairs, improvements, alterations, additions or
                  installations, whether structural or otherwise, in and about
                  the Office Complex, or any part thereof, and for such purposes
                  to enter upon the Premises (after reasonable advance notice of
                  twenty-four (24) hours), and during the continuation of any of
                  said work, to temporarily close doors, entryways, public
                  spaces and corridors in the Office Complex and to interrupt or
                  temporarily suspend services and facilities.

         E.       To restrict or prohibit vending or dispensing machines of any
                  kind in or about the Premises; provided, however, Lessor
                  consents to the installation of vending machines in the pantry
                  or kitchen areas of the Premises for the dispensing of soda
                  and other similar drinks and snack foods to only Lessee's
                  employees, clients and visitors.

         F.       To approve the weight, size and location of safes and other
                  heavy equipment and articles in and about the Premises and the
                  Office Complex and to require all such items to be moved into
                  and out of the Office Complex and the Premises only at such
                  times and in such manner as Lessor shall direct in writing.

         G.       To grant to anyone the exclusive right to conduct any
                  particular business or undertaking in the Office Complex other
                  than general office use, for only the following businesses:
                  banks, savings and loan associations, candy and/or tobacco
                  shops, and other stores selling retail products.

         Lessor and its agents may enter the Premises at any time in case of
emergency and shall have the right to use any and all means which Lessor may
deem proper to open such doors during an emergency in order to obtain entry to
the Premises. Any entry to the Premises obtained by Lessor in the event of an
emergency shall not, under any circumstances, be construed or deemed to be a
forcible or unlawful entry into, or detainer of, the Premises, or to be an
eviction of Lessee from the Premises or any portion thereof.

         Lessee shall permit Lessor and its agents twenty-four (24) hours
advance notice, to enter and pass through the Premises or any part thereof at
reasonable times during normal business hours to: (a) post notices of
nonresponsibility; and (b) exhibit the Premises to holders of encumbrances on
the interest of Lessor under the

                                      -15-

<PAGE>

Lease and to prospective purchasers, mortgagees or lessees of the Office
Complex.

         All covenants and agreements to be performed by Lessee under any of the
terms of this Lease shall be performed by Lessee at Lessee's sole cost and
expense and without any abatement of rent. If Lessee shall fail to pay any sum
of money (other than rent due Lessor) required to be paid by it hereunder or
shall fail to perform any other act on its part to be performed hereunder,
including, but not limited to, the failure to commence and complete repairs
promptly and adequately, and the failure to remove any liens or otherwise to
perform any act or fulfill any obligation required of Lessee under this Lease,
Lessor may, but shall not be obligated to do so, without waiving or releasing
Lessee from any obligations of Lessee, and upon reasonable prior notice to
Lessee, make any such payment or perform any such act on Lessee's part to be
made or performed as in this Lease provided. All sums so paid by Lessor and all
necessary incidental costs, together with an administrative charge in the amount
of ten percent (10%) of any costs incurred by Lessor, and interest thereon at
the rate set forth in Article III accruing from the date paid or incurred by
Lessor until reimbursed to Lessor by Lessee, shall be payable to Lessor by
Lessee as rent on demand and Lessee covenants to pay all such sums. Lessor shall
have (in addition to any other right or remedy of Lessor) the same rights and
remedies in the event of Lessee's nonpayment of such sums, as in the case of
default by Lessee in the payment of rent to Lessor.

ARTICLE VIII. ALTERATIONS AND IMPROVEMENTS: Lessee shall not make any
improvements, alterations, additions or installations in excess of $10,000.00 or
otherwise affecting the Building structure or systems, in or to the Premises
(hereinafter referred to as "Work") without Lessor's prior written consent,
which consent may not be unreasonably withheld. Along with any request for
Lessor's consent and before commencement of the Work or delivery of any
materials to be used in the Work to the Premises or into the Office Complex,
Lessee shall furnish Lessor with plans and specifications, names and addresses
of contractors, copies of contracts, necessary permits and licenses, an
indemnification in such form and amount as may be reasonably satisfactory to
Lessor, and for Work estimated to cost $100,000.00 or more, a performance bond
executed by a commercial surety reasonably satisfactory to Lessor in an amount
equal to the cost of the Work and for the payment of all liens for labor and
material arising therefrom. Lessee agrees to defend and hold Lessor forever
harmless from any and all claims and liabilities of any kind and description
which may arise out of or be connected in any way with said improvements,
alterations, additions or installations. All Work shall be done only by
contractors or mechanics reasonably approved by Lessor and at such time and in
such manner as Lessor may from time to time reasonably designate. All Work done
by Lessee or its agents, employees or contractors shall be done in such a manner
as to avoid labor disputes. Lessee shall pay the cost of all such improvements,
alterations, additions or installations (including a reasonable charge, not in
excess of prevailing market rates, for Lessor's services and for Lessor's
inspection and engineering time) and the cost of painting, restoring or
repairing the Premises and the Office Complex occasioned by such improvements,
alterations, additions or installations. Upon completion of the Work, Lessee
shall furnish Lessor with contractor's affidavits, full and final waivers of
liens and receipted bills covering all labor and materials expended and used.
The Work shall comply with all insurance requirements and all laws, ordinances,
rules and regulations of all governmental authorities and shall be constructed
in a good and workmanlike manner. Lessee shall permit Lessor to inspect
construction operations in connection with the Work. Lessee shall not be allowed
to make any improvements, alterations, additions or installations if such action
results or would result in a labor dispute or otherwise would materially
interfere with Lessor's operation of the Office Complex. Lessor, by written
notice to Lessee given at or prior to termination of this Lease, may require
Lessee, at

                                      -16-

<PAGE>

Lessee's sole cost and expense, to remove any improvements, alterations,
additions or installations which are not typical of similar office projects used
for general office purposes, installed by Lessee in the Premises and to repair
or restore any damage caused by the installation and removal of such
improvements, alterations, additions or installations; provided, however, the
only improvements, alterations, additions or installations which Lessee shall
remove shall be those specified in Lessor's notice. Lessee shall keep the
Premises and the Office Complex free from any liens arising out of any work
performed, material furnished or obligations incurred by Lessee, and shall
indemnify, protect, defend and hold harmless Lessor from any liens and
encumbrances arising out of any work performed or material furnished by or at
the direction of Lessee. In the event that Lessee shall not, within twenty (20)
days following the imposition of any such lien, cause such lien to be released
of record by payment or posting of a proper bond, Lessor shall have, in addition
to all other remedies provided herein and by law, the right, but not the
obligation, to cause the same to be released by such means as it shall deem
proper, including payment of and/or defense against the claim giving rise to
such lien. All such sums paid by Lessor and all expenses incurred by it in
connection therewith, including attorneys' fees and costs, shall be payable as
Additional Rent to Lessor by Lessee on demand with interest at the rate provided
in Article III accruing from the date paid or incurred by Lessor until
reimbursed to Lessor by Lessee.

ARTICLE IX. REPAIRS: Subject to Article VI hereof, Lessee shall, during the term
of this Lease, at Lessee's expense, keep the Premises in as good order,
condition and repair as they were at the time Lessee took possession of the
same, reasonable wear and tear and damage from fire and other casualties
excepted. Lessee shall keep the Premises in a neat and sanitary condition, and
Lessee shall not commit any nuisance or waste on the Premises or in, on or about
the Office Complex, throw foreign substances in the plumbing facilities, or
waste any of the utilities furnished by the Lessor. All uninsured damage or
injury to the Premises or to the Office Complex caused by Lessee moving
furniture, fixtures, equipment or other devices in or out of the Premises or the
Office Complex or by installation or removal of furniture, fixtures, equipment,
devices or other property of Lessee or its agents, contractors, servants or
employees, due to carelessness, omission, neglect, improper conduct or other
cause of Lessee or its servants, employees, agents, visitors or licensees, shall
be repaired, restored and replaced promptly by Lessee at its sole cost and
expense to the satisfaction of Lessor. All repairs, restorations and
replacements shall be in quality and class equal to the original work and shall
comply with all requirements of this Lease.

         Subject to Article II hereof and to Lessee's specific obligations,
except to the extent of any damage caused by the fault or negligence of Lessee,
Lessor shall maintain and keep in good order, condition and repair all common
areas of the Office Complex and the structural portions of the Office Complex,
including the outer walls, roof, floors, foundations, load bearing members,
trusses, and joists, the HVAC facilities serving the Premises, and the portions
of the plumbing and electrical lines located outside of the Premises which serve
the Premises.

         Lessor and its employees and agents shall have the right to enter the
Premises at any reasonable time or times after twenty-four (24) hours advance
notice, for the purpose of inspection, cleaning, repairs, altering or improving
the same but nothing contained herein shall be construed as imposing any
obligation on Lessor to make any repairs, improvements, alterations, additions
or installations which are the obligation of Lessee.

         Either party may give written notice to the other party at least thirty
(30) days prior to vacating the Premises for the express purpose of arranging a
meeting for a joint inspection of the Premises.

                                      -17-

<PAGE>

ARTICLE X. ASSIGNMENT AND SUBLETTING: Lessee shall not, without the prior
written consent of Lessor, (i) transfer, pledge, mortgage or assign this Lease
or any interest hereunder; (ii) permit any assignment of this Lease by voluntary
act, operation of law or otherwise; (iii) sublet the Premises or any part
thereof; or (iv) permit the use of the Premises by any parties other than Lessee
and its agents and employees. Notwithstanding the foregoing, a sublease or
assignment to a subsidiary of Lessee, or an arrangement resulting from a merger
or reorganization in which the surviving entity has a "Tangible Net Worth"
(defined in Article VI of not less than Lessee's immediately prior to the merger
or reorganization, shall not require the consent of Lessor. Lessee shall seek
such written consent of Lessor by a written request therefor, setting forth such
information as Lessor may deem necessary. Lessee shall, by notice in writing,
advise Lessor of Lessee's intention, from, on and after a stated date (which
shall not be less than twenty (20) days after the date of Lessee's notice), to
assign this Lease or to sublet any part or all of the Premises for the balance
or any part of the term. Lessee's notice shall include all of the terms of the
proposed assignment or sublease and shall state the consideration therefor.
Lessee's notice shall state the name and address of the proposed assignee or
subtenant and a. true and complete copy of the proposed assignment or sublease
shall be delivered to Lessor with Lessee's notice.

         Lessor, upon receiving Lessee's notice with respect to any such space,
shall not unreasonably withhold its consent to Lessee's assignment of the Lease
or subletting such space to the party identified in Lessee's notice; provided,
however, that in the event Lessor consents to any such assignment or subletting,
and as a condition thereto, Lessee shall pay to Lessor fifty percent (50%) of
all profit derived by Lessee from such assignment or subletting. For purposes of
the foregoing, profit shall be deemed to include, but shall not be limited to,
the amount of all rent payable by such assignee or sublessee in excess of the
Base Rent, and rent adjustments, payable by Lessee under this Lease after
recovery by Lessee of its reasonable and necessary costs incurred in procuring
the sublease or assignment. If a part of the consideration for such assignment
or subletting shall be payable other than in cash, the payment to Lessor shall
be in cash for its share of any non-cash consideration based upon the fair
market value thereof.

         Lessee shall and hereby agrees that it will furnish to Lessor upon
request from Lessor a complete statement, certified by an independent certified
public accountant, setting forth in detail the computation of all profit derived
and to be derived from such assignment or subletting, such computation to be
made in accordance with generally accepted accounting principles. Lessee agrees
that Lessor and its authorized representatives shall be given access at all
reasonable times to the books, records and papers of Lessee relating to any such
assignment or subletting, and Lessor shall have the right to make copies
thereof. The percentage of Lessee's profit due Lessor hereunder shall be paid by
Lessee to Lessor within ten (10) business days of receipt by Lessee of all
payments made from time to time by such assignee or sublessee to Lessee.

         For purposes of the foregoing, any change in the partners of Lessee, if
Lessee is a partnership, or, if Lessee is a corporation, any transfer of any or
all of the shares of stock of Lessee by sale, assignment, operation of law or
otherwise resulting in a change in the present control of such corporation by
the person or persons owning a controlling portion of such shares as of the date
of this Lease, shall be deemed to be an assignment within the meaning of this
Article X.

         Unless the express, written consent of Lessor is given regarding
releasing Lessee, any subletting or assignment hereunder shall not release or
discharge Lessee of or from any liability, whether past, present or future,
under this Lease, and Lessee shall continue fully liable thereunder. Lessor
shall have no obligation to agree to such release or discharge. The subtenant or
subtenants

                                      -18-

<PAGE>

or assignee shall agree in a form satisfactory to Lessor to comply with and be
bound by all of the terms, covenants, conditions, provisions and agreements of
this Lease to the extent of the space sublet or assigned, and Lessee shall
deliver to Lessor promptly after execution an executed copy of each such
sublease or assignment and an agreement of compliance by each such subtenant or
assignee. Consent by Lessor to any assignment of this Lease or to any subletting
of the Premises shall not be a waiver of Lessor's rights under this Article X as
to any subsequent assignment or subletting.

         Any sale, assignment, mortgage, transfer or subletting of this Lease
which is not in compliance with the provisions of this Article X shall be of no
effect and void. Lessor's right to assign its interest in this Lease shall
remain unqualified. Lessor may make a reasonable charge to Lessee for any
reasonable attorneys' fees or expenses incident to a review of any documentation
related to any proposed assignment or subletting by Lessee.

         Notwithstanding anything to the contrary in this Lease, Lessee shall
not assign its rights under this Lease or sublet all or any part of the Premises
to a person, firm or corporation which is (or, immediately prior to such
subletting or assignment, was) a tenant or occupant of the Office Complex owned
by Lessor.

         The consent of Lessor to a transfer may not be unreasonably withheld,
provided that should Lessor withhold its consent for any of the following
reasons, which list is not exclusive, such withholding shall be deemed to be
reasonable:

         (a)      A proposed transferee whose occupation of the Premises would
                  cause a diminution in the reputation of the Office Complex or
                  the other businesses located therein;

         (b)      A proposed transferee whose impact on the common areas or the
                  other occupants of the Office Complex would be
                  disadvantageous; or

         (c)      A proposed transferee whose occupancy will require any
                  variation in the terms and conditions of this Lease.

ARTICLE XI. DAMAGE BY FIRE OR OTHER CASUALTY: If fire or other casualty shall
render the whole or any material portion of the Premises untenantable, and the
Premises can reasonably be expected to be made tenantable within one hundred
twenty (120) days from the date of such event, then Lessor shall repair and
restore the Premises and the Office Complex to as near their condition prior to
the fire or other casualty as is reasonably possible within such one hundred
twenty (120) day period (subject to delays for causes beyond Lessor's reasonable
control) and notify Lessee that it will be doing so, such notice to be mailed
within thirty (30) days from the date of such damage or destruction, and this
Lease shall remain in full force and effect, but the rent for the period during
which the Premises are untenantable shall be abated pro rata (based upon the
portion of the Premises which is untenantable). If Lessor is required to repair
the Office Complex and/or the Premises, as aforesaid, said work shall be
undertaken and prosecuted with all due diligence and speed.

         If fire or other casualty shall render the whole or any material part
of the Premises untenantable and the Premises cannot reasonably be expected to
be made tenantable within one hundred twenty (120) days from the date of such
event, then either party, by notice in writing to the other mailed within thirty
(30) days from the date of such damage or destruction, may terminate this Lease
effective upon a date within thirty (30) days from the date of such notice.

         In the event that more than fifty percent (50%) of the value of the
specific office structure of which the Premises is a part is damaged or
destroyed by fire or other casualty, and irrespective of

                                      -19-

<PAGE>

whether damage or destruction can be made tenantable within one hundred twenty
(120) days thereafter, then at Lessor's option, by written notice to Lessee,
mailed within forty-five (45) days from the date of such damage or destruction,
Lessor may terminate this Lease effective upon a date within ninety (90) days
from the date of such notice to Lessee. Further, if the foregoing damage or
destruction results in a materially adverse effect on Lessee's use and enjoyment
of the Premises, the Lessee shall have the same right to terminate as is
provided to Lessor (and within the same time periods) in the foregoing sentence.

         If fire or other casualty shall render any material portion of the
Premises or any material portion of the Office Complex untenantable and the
insurance proceeds are not sufficient to make repairs, then Lessor may, by
notice to Lessee, mailed within thirty (30) days from the date of such damages
or destruction, terminate this Lease effective upon a date within thirty (30)
days from the date of such notice. However, Lessee may within fifteen (15) days
from Lessor's notice of termination elect to fund the repair cost shortfall and
upon making such funds available to lessor or an independent escrowee within
fifteen (15) days of Lessee's election notice, Lessor's termination election
shall be rescinded, and Lessor shall proceed to repair or restore the Premises
and the Office Complex.

         If the Premises or the Office Complex is damaged, and such damage is of
the type insured against under the fire and special form property damage
insurance maintained by Lessor hereunder, the cost of repairing said damage up
to the amount of the deductible under said insurance policy shall be included as
a part of the Operating Expenses. If the damage is not covered by such insurance
policies and Lessor elects to repair the damage, then Lessee shall pay Lessor a
pro rata share of the "deductible amount" (if any) under Lessor's insurance
policies based on Lessee's percentage interest of the Premises and, if the
damage was due to an act or omission of Lessee, Lessee shall pay Lessor the
difference between the actual cost of repair and any insurance proceeds received
by Lessor.

         If fire or other casualty shall render the whole or any material part
of the Premises untenantable and the Premises cannot reasonably be expected to
be made tenantable within one hundred twenty (120) days from the date of such
event and neither party hereto terminates this Lease pursuant to its rights
herein or in the event that more than fifty percent (50%) of the value of the
Office Complex is damaged or destroyed by fire or other casualty, and Lessor
does not terminate this Lease pursuant to its option granted herein, or in the
event that fifty percent (50%) or less of the value of the Office Complex is
damaged or destroyed by fire or other casualty and neither the whole nor any
material portion of the Premises is rendered untenantable, then Lessor shall
repair and restore the Premises and the Office Complex to as near their
condition prior to the fire or other casualty as is reasonably possible with all
due diligence and speed (subject to delays for causes beyond Lessor's reasonable
control) and the rent for the period during which the Premises are untenantable
shall be abated pro rata (based upon the portion of the Premises which is
untenantable). In no event shall Lessor be obligated to repair or restore any
special equipment or improvements installed by Lessee. Anything herein contained
to the contrary notwithstanding, Lessor shall not be obligated to spend more
than the net insurance proceeds received by Lessor on account of any fire or
other casualty in order to repair or restore the Premises or the Office Complex
following such casualty; provided, however, Lessor shall notify Lessee promptly
after the casualty if Lessor is unwilling to expend more than the net insurance
proceeds.

         In the event of a termination of this Lease pursuant to this Article
XI, rent shall be apportioned on a per diem basis and paid to the date of the
fire or other casualty.

                                      -20-

<PAGE>

ARTICLE XII. EMINENT DOMAIN: If the whole of or any substantial part of the
Premises is taken by any public authority under the power of eminent domain, or
taken in any manner for any public or quasi-public use, so as to render the
remaining portion of the Premises unsuitable for the purposes intended
hereunder, then the term of this Lease shall cease as of the day possession
shall be taken by such public authority and Lessor shall make a pro rata refund
of any prepaid rent. All damages awarded for such taking under the power of
eminent domain or any like proceedings shall belong to and be the property of
Lessor, Lessee hereby assigning to Lessor Lessee's interest, if any, in said
award. In the event that fifty percent (50%) or more of the building area or
fifty percent (50%) or more of the value of the Office Complex is taken by
public authority under the power of eminent domain, then, at Lessor's option, by
written notice to Lessee mailed within thirty (30) days from the date possession
shall be taken by such public authority, Lessor may terminate this Lease
effective upon a date within thirty (30) days from the date of such notice to
Lessee. Further, if the whole of or any material part of the Premises is taken
by public authority under the power of eminent domain, or taken in any manner
for any public or quasi-public use, so as to render the remaining portion of the
Premises unsuitable for the purposes intended hereunder, upon delivery of
possession to the condemning authority pursuant to the proceedings, Lessee may,
at its option, terminate this Lease as to the remainder of the Premises by
written notice to Lessor, such notice to be given to Lessor within thirty (30)
days after Lessee receives notice of the taking. Lessee shall not have the right
to terminate this Lease pursuant to the preceding sentence unless (i) the
business of Lessee conducted in the portion of the Premises taken cannot be
carried on with substantially the same utility and efficiency in the remainder
of the Premises (or any substitute space securable by Lessee pursuant to clause
(ii) hereof); and (ii) Lessee cannot secure substantially similar (in Lessee' s
reasonable judgment) alternate space upon the same terms and conditions as set
forth in this Lease (including rental) from Lessor in the Office Complex. Any
notice of termination shall specify the date no more than sixty (60) days after
the giving of such notice as the date for such termination.

         Anything in this Article XII to the contrary notwithstanding, Lessee
shall have the right to prove in any condemnation proceedings and to receive any
separate award which may be made for damages to or condemnation of Lessee's
movable trade fixtures and equipment and for moving expenses; provided, however,
Lessee shall in no event have any right to receive any award for its interest in
this Lease or for loss of leasehold; and, provided further, Lessee shall not be
entitled to claim any award to the extent the award to Lessor would be reduced
below the amount which would be allowed to Lessor absent such claim by Lessee.
Anything in this Article XII to the contrary notwithstanding, in the event of a
partial condemnation of the Office Complex or the Premises and this Lease is not
terminated, Lessor shall, at its sole cost and expense, restore the Premises and
Office Complex to a complete architectural unit and the Base Rent provided for
herein during the period from and after the date of delivery of possession
pursuant to such proceedings to the termination of this Lease shall be reduced
proportionately based upon the resulting rentable area of the Premises versus
the rentable area of the Premises prior to such taking.

ARTICLE XIII. SURRENDER OF PREMISES: On the last day of the term of this Lease,
or on the sooner termination thereof, Lessee shall peaceably surrender the
Premises in good condition and repair consistent with Lessee's duty to make
repairs as herein provided. On or before the last day of the term of this Lease,
or the date of sooner termination thereof, Lessee shall, at its sole cost and
expense, remove all of its property and trade fixtures and equipment from the
Premises, and all property not removed shall be deemed abandoned. Lessee hereby
appoints Lessor its agent to remove all property of Lessee from the Premises
upon termination of this Lease at the sole cost and risk of Lessee, and Lessor
shall not be liable for damage, theft, misappropriation or loss thereof and
Lessor

                                      -21-

<PAGE>

shall not be liable in any manner in respect thereto. Lessee shall pay all costs
and expenses of such removal. Lessee shall leave the Premises in good order,
condition and repair, reasonable wear and tear and damage from fire and other
casualty not caused by Lessee excepted. Lessee shall reimburse Lessor upon
demand for any expenses incurred by Lessor with respect to removal,
transportation or storage of abandoned property and with respect to restoring
said Premises to good order, condition and repair. All improvements,
alterations, additions, installations and fixtures, other than Lessee's trade
fixtures and equipment, which have been made or installed by either Lessor or
Lessee upon the Premises shall remain the property of Lessor and shall be
surrendered with the Premises as a part thereof, unless Lessee is required to
remove same pursuant to the provisions of Article VIII hereof. Lessee shall
promptly surrender all keys for the Premises to Lessor at the place then fixed
for the payment of rent and shall inform Lessor of the combinations of any
vaults, locks and safes left on the Premises.

ARTICLE XIV. DEFAULT OF LESSEE: The occurrence of any one or more of the
following events (in this Article sometimes called "Event of Default") shall
constitute a default and breach of this Lease by Lessee:

         A.       If Lessee fails to pay any Base Rent or Additional Rent
                  payable under this Lease or fails to pay any obligation
                  required to be paid by Lessee when and as the same shall
                  become due and payable, and such default continues for a
                  period of ten (10) days after written notice thereof given by
                  Lessor to Lessee.

         B.       If Lessee fails to perform any of Lessee's nonmonetary
                  obligations under this Lease for a period of thirty (30) days
                  after written notice from Lessor; provided that if more time
                  is required to complete such performance, Lessee shall not be
                  in default if Lessee commences such performance within the
                  thirty-day period and thereafter diligently pursues its
                  completion. However, Lessor shall not be required to give such
                  notice if Lessee's failure to perform constitutes a
                  non-curable breach of this Lease. The notice required by this
                  subsection is intended to satisfy any and all notice
                  requirements imposed by law on Lessor and is not in addition
                  to any such requirement.

         C.       If Lessee, by operation of law or otherwise, violates the
                  provisions of Article X hereof relating to assignment,
                  sublease, mortgage or other transfer of Lessee's interest in
                  this Lease or in the Premises or in the income arising
                  therefrom.

         D.       If Lessee, by operation of law or otherwise, violates the
                  provisions of Article XVI.R relating to compliance with
                  environmental laws.

         E.       If (i) Lessee makes a general assignment or general
                  arrangement for the benefit of creditors; (ii) a petition for
                  adjudication of bankruptcy or for reorganization or
                  rearrangement is filed by or against Lessee and is not
                  dismissed within thirty (30) days; (iii) if a trustee or
                  receiver is appointed to take possession of substantially all
                  of Lessee's assets located at the Premises or of Lessee's
                  interest in this Lease and possession is not restored to
                  Lessee within thirty (30) days; or (iv) if substantially all
                  of Lessee's assets located at the Premises or of Lessee's
                  interest in this Lease is subjected to attachment, execution
                  or other judicial or nonjudicial seizure which is not
                  discharged within thirty (30) days. If a court of competent
                  jurisdiction determines that any of the acts described in this
                  subsection does not constitute an Event of Default and a
                  trustee is appointed to take possession (or if Lessee

                                      -22-

<PAGE>

                  remains a debtor in possession) and such trustee or Lessee
                  transfers Lessee's interest hereunder, then Lessor shall
                  receive, as Additional Rent, the difference between the rent
                  (or any other consideration) paid in connection with such
                  assignment or sublease and the rent payable by Lessee
                  hereunder. As used in this subsection, the term "Lessee"
                  shall also mean any guarantor of Lessee's obligations under
                  this Lease. If any such Event of Default shall occur, Lessor,
                  at any time during the continuance of any such Event of
                  Default, may give written notice to Lessee stating that this
                  Lease shall expire and terminate on the date specified in such
                  notice, and upon the date specified in such notice this Lease,
                  and all rights of Lessee under this Lease, including all
                  rights of renewal whether exercised or not, shall expire and
                  terminate, or in the alternative or in addition to the
                  foregoing remedy, Lessor may assert and have the benefit of
                  any other remedy allowed herein, at law, or in equity.

         Upon the occurrence of an Event of Default by Lessee, and at any time
thereafter, with or without notice or demand and without limiting Lessor in the
exercise of any right or remedy which Lessor may have, Lessor shall be entitled
to the rights and remedies set forth below:

         A.       Terminate Lessee's right to possession of the Premises by any
                  lawful means, in which case this Lease shall not terminate
                  unless Lessor gives written Notice to Lessee of its intention
                  to terminate this Lease and Lessee shall immediately surrender
                  possession of the Premises to Lessor. In such event, Lessor
                  shall have the immediate right to reenter and remove all
                  persons and property, and such property may be removed and
                  stored in a public warehouse or elsewhere at the cost of, and
                  for the account of Lessee, all without service of notice or
                  resort to legal process and without being deemed guilty of
                  trespass, or becoming liable for any loss or damage which may
                  be occasioned thereby. In the event that Lessor shall elect to
                  so terminate this Lease, then Lessor shall be entitled to
                  recover from Lessee all damages incurred by Lessor by reason
                  of Lessee's default, including:

                  1.       The equivalent of the amount of the Base Rent and
                           Additional Rent which would be payable under this
                           Lease by Lessee if this Lease were still in effect,
                           less

                  2.       The net proceeds of any reletting affected pursuant
                           to the provisions of this Article XIV hereof after
                           deducting all of Lessor's reasonable expenses in
                           connection with such reletting, including, without
                           limitation, all repossession costs, brokerage
                           commissions, legal expenses, reasonable attorneys'
                           fees, alteration costs, and expenses of preparation
                           of the Premises, or any portion thereof, for such
                           reletting.

                  Lessee shall pay such current damages in the amount determined
                  in accordance with the terms of this Article XIV as set forth
                  in a written statement thereof from Lessor to Lessee
                  (hereinafter called the "Deficiency"), to Lessor in monthly
                  installments on the days on which the rent would have been
                  payable under this Lease if this Lease were still in effect,
                  and Lessor shall be entitled to recover from Lessee each
                  monthly installment of the Deficiency as the same shall arise.

         B.       At any time after an Event of Default, whether or not Lessor
                  shall have collected any monthly Deficiency as set forth in
                  this Article XIV, Lessor shall be entitled to

                                      -23-
<PAGE>

                  recover from Lessee, and Lessee shall pay to Lessor, on
                  demand, as and for final damages for Lessee's default, an
                  amount equal to the then present worth of the aggregate of the
                  Base Rent and Additional Rent and any other charges to be paid
                  by Lessee hereunder for the unexpired portion of the term of
                  this Lease (assuming this Lease had not been so terminated).
                  In the computation of present worth, a discount at the rate of
                  ten percent (10%) per annum shall be employed. If the
                  Premises, or any portion thereof, shall be relet by Lessor for
                  the unexpired term of this Lease, or any part thereof, before
                  presentation of proof of such damages to any court, commission
                  or tribunal, the amount of rent received upon such reletting
                  shall be offset against any monies claimed pursuant to this
                  subsection. Nothing herein contained or contained in this
                  Article XIV shall limit or prejudice the right of Lessor to
                  prove for and obtain, as damages, an amount equal to the
                  maximum allowed by any statute or rule of law in effect at the
                  time when, and governing the proceedings in which, such
                  damages are to be proved, whether or not such amount be
                  greater, equal to or less than the amount of the difference
                  referred to above.

         C.       Upon the occurrence of an Event of Default by Lessee, Lessor
                  shall also have the right, with or without terminating this
                  Lease, to reenter the Premises to remove all persons and
                  property from the Premises. Such property may be removed and
                  stored in a public warehouse or elsewhere at the cost of and
                  for the account of Lessee. If Lessor shall elect to reenter
                  the Premises, Lessor shall not be liable for damages by reason
                  of such reentry.

         D.       If Lessor does not elect to terminate this Lease as provided
                  in this Article XIV then Lessor may, from time to time,
                  recover all rent as it becomes due under this Lease. At any
                  time thereafter, Lessor may elect to terminate this Lease and
                  to recover damages to which Lessor is entitled.

         E.       In the event that Lessor should elect to terminate this Lease
                  and to relet the Premises, it may execute any new lease in its
                  own name. In the event that Lessor should not elect to
                  terminate this Lease, it may re-let the Premises to a
                  substitute tenant at the then prevailing market rate. Lessee
                  hereunder shall have no right or authority whatsoever to
                  collect any rent from such substitute tenant. The proceeds of
                  any such reletting shall be applied as follows:

                  1.       First, to the payment of any indebtedness other than
                           rent due hereunder from Lessee to Lessor, including
                           but not limited to storage charges or brokerage
                           commissions owing from Lessee to Lessor as the result
                           of such reletting;

                  2.       Second, to the payment of the costs and expenses of
                           reletting the Premises, including repairs which were
                           required to be performed by Lessee and which Lessor,
                           in its sole discretion, deems reasonably necessary
                           and advisable and reasonable attorneys' fees incurred
                           by Lessor in connection with the retaking of the
                           Premises and such reletting;

                  3.       Third, to the payment of rent and other charges due
                           and unpaid hereunder; and

                  4.       Fourth, to the payment of future rent and other
                           damages payable by Lessee under this Lease.

         Upon any Event of Default by Lessee, Lessor agrees to use commercially
reasonable efforts to mitigate the resulting damages.

Scottsdale Northsight/JDA Software
04/26/98: 531637.1827-0801

                                      -24-

<PAGE>

Lessee may contest the damage claim of Lessor, if Lessor fails to exert such
mitigation effort.

         Lessor shall not be deemed to have terminated this Lease and the
Lessee's right to possession of the leasehold or the liability of Lessee to pay
rent thereafter to accrue or its liability for damages under any of the
provisions hereof, unless Lessor shall have notified Lessee in writing that it
has so elected to terminate this Lease. Lessee covenants that the retaking of
possession by Lessor or the service by Lessor of any notice pursuant to the
applicable unlawful detainer statutes of the state in which the Office Complex
is located and Lessee's surrender of possession pursuant to such notice shall
not (unless Lessor elects to the contrary at the time of, or at any time
subsequent to the service of, such notice, and such election be evidenced by a
written notice to Lessee) be deemed to be a termination of this Lease or of
Lessee's right to possession thereof.

         All rights, options and remedies of Lessor contained in this Lease
shall be construed and held to be cumulative, and no one of them shall be
exclusive of the other, and Lessor shall have the right to pursue any one or all
of such remedies or any other remedy or relief which may be provided by law
whether or not stated in this Lease. No waiver by Lessor of a breach of any of
the terms, covenants or conditions of this Lease by Lessee shall be construed or
held to be a waiver of any succeeding or preceding breach of the same or any
other term, covenant or condition therein contained. No waiver of any default of
Lessee hereunder shall be implied from any omission by Lessor to take any action
on account of such default if such default persists or is repeated, and no
express waiver shall affect default other than as specified in said waiver. The
consent or approval by Lessor to or of any act by Lessee requiring Lessor's
consent or approval shall not be deemed to waive or render unnecessary Lessor's
consent to or approval of any subsequent similar acts by Lessee.

         Lessee shall reimburse Lessor, upon demand, for any costs or expenses
incurred by Lessor in connection with any breach or default of Lessee under this
Lease, whether or not suit is commenced or judgment entered. Such costs shall
include, but not be limited to: legal fees and costs incurred for the
negotiation of a settlement, enforcement of rights or otherwise. Furthermore, if
any action for breach of or to enforce the provisions of this Lease is
commenced, the court in such action shall award to the party in whose favor a
judgment is entered a reasonable sum as attorneys' fees and costs. Such
attorneys' fees and costs shall be paid by the losing party in such action.
Lessee shall also indemnify Lessor against and hold Lessor harmless from all
costs, expenses, demands and liability incurred by Lessor if Lessor becomes or
is made a party to any claim or action (a) instituted by Lessee, or by any third
party against Lessee; (b) for foreclosure of any lien for labor or material
furnished to or for Lessee or such other person; (c) otherwise arising out of or
resulting from any act or transaction of Lessee or such other person; or (d)
necessary to protect Lessor's interest under this Lease in a bankruptcy
proceeding or other proceeding under Title 11 of the United States Code, as
amended. Lessee shall defend Lessor against any such claim or action at Lessee's
expense with counsel reasonably acceptable to Lessor or, at Lessor's election,
Lessee shall reimburse Lessor for any legal fees or costs incurred by Lessor in
any such claim or action.

         In addition, Lessee shall pay Lessor's reasonable attorneys' fees
incurred in connection with Lessee's request for Lessor's consent in connection
with any act which Lessee proposed to do and which requires Lessor's consent.

         Lessee hereby waives all claims by Lessor's reentering and taking
possession of the Premises or removing and storing the property of Lessee as
permitted under this Lease and will save Lessor harmless from all losses, costs
or damages occasioned Lessor

Scottsdale Northsight/JDA Software
04/26/98: 531637.1827-0801

                                      -25-

<PAGE>

thereby. No such reentry shall be considered or construed to be a forcible entry
by Lessor.

ARTICLE XV. SUBORDINATION: This Lease shall be subject and subordinate to any
mortgage, deed of trust or ground lease now or hereafter placed upon the
Premises, the Office Complex, the Property or any portion thereof by Lessor or
its successors or assigns, and to amendments, replacements, renewals and
extensions thereof. Lessee agrees at any time hereafter, upon demand, to execute
and deliver any instruments, releases or other documents that may be reasonably
required for the purpose of subjecting and subordinating this Lease, as above
provided, to the lien of any such mortgage, deed of trust or ground lease. It is
agreed, nevertheless, that as long as Lessee is not in default in the payment of
Base Rent, Additional Rent, and other charges to be paid by Lessee under this
Lease and in the performance of all covenants, agreements and conditions to be
performed by Lessee under this Lease, then neither Lessee's right to quiet
enjoyment under this Lease, nor the right of Lessee to continue to occupy the
Premises and to conduct its business thereon, in accordance with the terms of
this Lease as against any lessor, lessee, mortgagee, trustee or their successors
or assigns shall be disturbed.

         The above subordination shall be effective without the necessity of the
execution and delivery of any further instruments on the part of Lessee to
effectuate such subordination. Notwithstanding anything hereinabove contained in
this Article XV, in the event the holder of any mortgage, deed of trust or
ground lease shall at any time elect to have this Lease constitute a prior and
superior lien to its mortgage, deed of trust or ground lease, then, and in such
event, upon any such holder or landlord notifying Lessee to that effect in
writing, this Lease shall be deemed prior and superior in lien to such mortgage,
deed of trust or ground lease, whether this Lease is dated prior to or
subsequent to the date of such mortgage, deed of trust or ground lease, and
Lessee shall execute such attornment agreement as may be reasonably requested by
said holder or Lessor.

         Lessee agrees, provided the mortgagee, ground lessor or trust deed
holder under any mortgage, ground lease, deed of trust or other security
instrument shall have notified Lessee in writing (by the way of a notice of
assignment of lease or otherwise) of its address, that Lessee shall give such
mortgagee, ground lessor, trust deed holder or other secured party
("Mortgagee"), simultaneously with delivery of notice to Lessor, by registered
or certified mail, a copy of any such notice of default served upon Lessor.
Lessee further agrees that said Mortgagee shall have the right to cure any
alleged default during the same period that Lessor has to cure such default.

         On or before the commencement of the term of this Lease, Lessor agrees
to provide an express "non-disturbance" agreement from the holder of any
mortgage or deed of trust in place as of such time.

ARTICLE XVI. MISCELLANEOUS:

         A.       Lessee represents that Lessee has dealt directly with and only
with Lee & Associates (Craig Coppola and Bill Blake) , as broker, in connection
with this Lease and that insofar as Lessee knows, no other broker negotiated or
participated in negotiations of this Lease or submitted or showed the Premises
or is entitled to any commission in connection therewith. Lessor and Lessee
agree that no broker shall be entitled to any commission in connection with any
renewal of the term of this Lease. Lessor shall pay the commission, if any, owed
to the "broker" named above for any expansion of the Premises.

         B.       Lessee agrees from time to time, upon not less than ten (10)
business days prior written request by Lessor, to deliver to Lessor a statement
in writing certifying (i) this Lease is

Scottsdale Northsight/JDA Software
04/26/98: 531637.1827-0801

                                      -26-

<PAGE>

unmodified and in full force and effect (or if there have been modifications
that the Lease as modified is in full force and effect and stating the
modifications); (ii) the dates to which the rent and other charges have been
paid; (iii) Lessor is not in default in any provision of this Lease or, if in
default, the nature thereof specified in detail; (iv) the amount of monthly
rental currently payable by Lessee; (v) the amount of any prepaid rent, and (vi)
such other factual matters as may be reasonably requested by Lessor or any
Mortgagee or prospective purchaser of the Office Complex.

         If Lessee does not deliver such statement to Lessor within such ten
(10) day period, Lessor and any prospective purchaser or encumbrancer of the
Premises or the Office Complex may conclusively presume and rely upon the
following facts: (i) that the terms and provisions of this Lease have not been
changed except as otherwise represented by Lessor; (ii) that this Lease has not
been canceled or terminated and is in full force and effect, except as otherwise
represented by Lessor; (iii) that the current amounts of the Base Rent and
security deposit are as represented by Lessor and that any charges made against
the security deposit are uncontested and valid; (iv) that there have been no
subleases or assignments of the Lease; (v) that not more than one month's Base
Rent or other charges have been paid in advance; and (vi) that Lessor is not in
default under the Lease. In such event, Lessee shall be estopped from denying
the truth of such facts.

         C.       All notices, demands and requests shall be in writing, and
shall be effectively served by forwarding such notice, demand or request by
certified or registered mail, postage prepaid, or by commercial overnight
courier service addressed as follows:

                  (i)  If addressed to Lessee:

                       JDA Software Group, Inc.
                       11811 North Tatum Boulevard
                       Suite 2000
                       Phoenix, Arizona 85018-1626
                       Attn: Kristen L. Magnuson, CFO

                       with a copy to:

                       JDA Software Group, Inc.
                       11811 North Tatum Boulevard
                       Suite 2000
                       Phoenix, Arizona 85018-1626
                       Attn: Karen L. Nagel, General Counsel

                  (ii) If addressed to Lessor:

                       Opus West Corporation
                       2415 East Camelback Road
                       Suite 800
                       Phoenix, Arizona 85016
                       Attn: Thomas W. Roberts, President

                       with a copy to:

                       Opus U.S. Corporation
                       2415 East Camelback Road
                       Suite 800
                       Phoenix, Arizona 85016
                       Attn: Daniel T. Haug, Esq.

                       and with a copy to:

                       Opus West Management Corporation
                       2415 East Camelback Road
                       Suite 840
                       Phoenix, Arizona 85016
                       Attn: Property Manager

Scottsdale Northsight/JDA Software
04/26/98: 531637.1827-0801

                                      -27-

<PAGE>

                       and with a copy to:

                       Gallagher & Kennedy, P.A.
                       2600 North Central Avenue
                       Phoenix, Arizona 85004-3020
                       Attn: Mr. Gregory L. Mast

or at such other addresses as Lessor and Lessee may hereafter designate by
written notice. The effective date of all notices shall be the time of mailing
such notice or the date of delivery to a commercial overnight courier service.

         D.       All rights and remedies of Lessor under this Lease or that may
be provided by law may be executed by Lessor in its own name, individually, or
in the name of its agent, and all legal proceedings for the enforcement of any
such rights or remedies, including those set forth in Article XIV, may be
commenced and prosecuted to final judgment and execution by Lessor in its own
name or in the name of its agent.

         E.       Lessor covenants and agrees that Lessee, upon paying the Base
Rent, Additional Rent and other charges herein provided for and observing and
keeping the covenants, agreements and conditions of this Lease on its part to be
kept and performed, shall lawfully and quietly hold, occupy and enjoy the
Premises during the term of this Lease. Time is of the essence of this Lease and
each and every provision contained herein, and any extension of time granted by
Lessor to Lessee for the performance of any obligation of Lessee under this
Lease shall not be considered an extension of time for the performance of any
subsequent obligation of Lessee under this Lease.

         F.       The covenants and agreements herein contained shall bind and
inure to the benefit of Lessor and its successors and assigns and Lessee and its
permitted successors and assigns. All obligations of each party constituting
Lessee hereunder shall be the joint and several obligations of each such party.

         G.       If any term or provision of this Lease shall to any extent be
held invalid or unenforceable, the remaining terms and provisions of this Lease
shall not be affected thereby, but each term and provision of this Lease shall
be valid and enforced to the fullest extent permitted by law. This Lease shall
be construed and enforced in accordance with the laws of the state in which the
Premises are located.

         H.       Lessee covenants not to do or suffer any waste or damage or
disfigurement or injury to the Premises or the Office Complex and Lessee further
covenants that it will not vacate or abandon the Premises during the term of
this Lease.

         I.       The term "Lessor" as used in this Lease so far as covenants or
obligations on the part of Lessor are concerned shall be limited to mean and
include only the owner or owners of the Office Complex at the time in question,
and in the event of any transfer or transfers or conveyances and an assumption
by the assignor or successor of the obligation of "Lessor" herein, the then
grantor shall be automatically freed and released from all personal liability
accruing from and after the date of such transfer or conveyance as respects the
performance of any covenant or obligation on the part of Lessor contained in
this Lease to be performed, it being intended hereby that the covenants and
obligations contained in this Lease on the part of Lessor shall be binding on
the Lessor, its successors and assigns, only during and in respect to their
respective successive periods of ownership.

         In the event of a sale or conveyance by Lessor of the Office Complex or
any part of the Office Complex, the same shall operate to release Lessor from
any future liability upon any of the covenants or conditions herein contained
and in such event Lessee agrees to look solely to the responsibility of the
successor in

Scottsdale Northsight/JDA Software
04/26/98: 531637.1827-0801

                                      -28-

<PAGE>

interest of Lessor in and to this Lease. This Lease shall not be affected by any
such sale or conveyance, and Lessee agrees to attorn to the purchaser or
grantee, which purchaser or grantee shall be personally obligated on this Lease
only so long as it is the owner of Lessor's interest in and to this Lease.

         J.       The marginal or topical headings of the several Articles are
for convenience only and do not define, limit or construe the contents of said
Articles.

         K.       All preliminary negotiations are merged into and incorporated
in this Lease, except for written collateral agreements executed
contemporaneously herewith.

         L.       This Lease can only be modified or amended by an agreement in
writing signed by the parties hereto. No receipt of money by Lessor from Lessee
or any other person after termination of this Lease or after the service of any
notice or after the commencement of any suit, or after final judgment for
possession of the Premises, shall reinstate, continue or extend the term of this
Lease or affect any such notice, demand or suit, or imply consent for any action
for which Lessor's consent is required, unless specifically agreed to in writing
by Lessor. Any amounts received by Lessor may be allocated to any specific
amounts due from Lessee to Lessor as Lessor determines.

         M.       Lessor shall have the right to close any portion of the
building area or land area to the extent as may, in Lessor's reasonable opinion,
be necessary to prevent a dedication thereof or the accrual of any rights to any
person or the public therein. Lessor shall at all times have full control,
management and direction of the Office Complex, subject to the rights of Lessee
in the Premises, and subject to the approval of Lessee, which approval shall not
be unreasonably withheld, Lessor reserves the right at any time and from time to
time to reduce, increase, enclose or otherwise change the size, number and
location of buildings, layout and nature of the Office Complex, to construct
additional buildings and additions to any building, and to create additional
rentable areas through use and/or enclosure of common areas, or otherwise, and
to place signs on the Office Complex. No implied easements are granted by this
Lease.

         N.       Lessee shall permit Lessor (or its designees), upon not less
than twenty-four (24) hours advance notice, to erect, use, maintain, replace and
repair pipes, cables, conduits, plumbing, vents, and telephone, electric and
other wires or other items, in, to and through the Premises, as and to the
extent that Lessor may now or hereafter deem necessary or appropriate for the
proper operation and maintenance of the Office Complex, but without material
disruption to Lessee's use and enjoyment of the Premises.

         O.       Employees or agents of Lessor have no authority to make or
agree to make a lease or other agreement or undertaking in connection herewith.
The submission of this document for examination does not constitute an offer to
lease, or a reservation of, or option for, the Premises. This document becomes
effective and binding only upon the execution and delivery hereof by the proper
officers of Lessor and by Lessee. Lessee confirms that Lessor and its agents
have made no representations or promises with respect to the Premises or the
making of or entry into this Lease except as in this Lease expressly set forth,
and Lessee agrees that no claim or liability shall be asserted by Lessee against
Lessor for, and Lessor shall not be liable by reason of, breach of any
representations or promises not expressly stated in this Lease. This Lease,
except for the Building Rules and Regulations, in respect to which subparagraph
P of this Article shall prevail, can be modified or altered only by agreement in
writing between Lessor and Lessee, and no act or omission of any employee or
agent of Lessor shall alter, change or modify any of the provisions hereof.

Scottsdale Northsight/JDA Software
04/26/98: 531637.1827-0801

                                      -29-

<PAGE>

         P.       Lessee shall perform, observe and comply with the Building
Rules and Regulations of the Office Complex as set forth on Exhibit B attached
hereto and by this reference incorporated herein, with respect to the safety,
care and cleanliness of the Premises and the Office Complex, and the
preservation of good order thereon, and, upon written notice thereof to Lessee,
Lessee shall perform, observe and comply with any changes, amendments or
additions thereto as from time to time shall be established and deemed advisable
by Lessor for tenants of the Office Complex. Lessor shall not be liable to
Lessee for any failure of any other tenant or tenants of the Office Complex to
comply with such Building Rules and Regulations. Lessor shall enforce such
Building Rules and Regulations in a reasonable, uniform and nondiscriminatory
manner.

         Q.       Neither party shall use the Premises or permit (which, in the
case of Lessor, shall require knowledge and consent) anything to be done in or
about the Premises which will, in any way, conflict with any law, statute,
ordinance or governmental rule or regulation now in force or which may hereafter
be enacted or promulgated. Lessee shall, at its sole cost and expense, promptly
comply with all laws, statutes, ordinances and governmental rules and
regulations now in force or which may hereafter be in force, including, without
limitation, those pertaining to indoor air quality, and with the requirements of
any fire insurance underwriters or other similar body now or hereafter
constituted relating to or affecting the condition, use or occupancy of the
Premises. Lessee shall use the Premises and comply with any recorded covenants,
conditions, and restrictions affecting the Premises and the Office Complex as of
the commencement of the Lease or which are recorded during the lease term.

         R.       Neither party shall (either with or without negligence) cause
or permit (which, in the case of Lessor, shall require knowledge and consent)
the escape, disposal or release of any biologically or chemically active or
other hazardous substances or materials. Lessee shall not allow the storage or
use of such substances or materials in any manner not sanctioned by law and by
the highest standards prevailing in the industry for the storage and use of such
substances or materials, nor allow to be brought into the Office Complex any
such materials or substances except to use in the ordinary course of Lessee's
business, and then only after written notice is given to Lessor of the identity
of such substances or materials. Without limitation, hazardous substances and
materials shall include those described in the Comprehensive Environmental
Response, Compensation and Liability Act of 1980, as amended, 42 U.S.C. Section
9601 et seq., the Resource Conservation and Recovery Act, as amended, 42 U.S.C.
Section 6901 et seq., any applicable state or local laws and the regulations
adopted under these acts. If any lender or governmental agency shall ever
require testing to ascertain whether or not there has been any release of
hazardous materials, then the reasonable costs thereof shall be reimbursed by
Lessee to Lessor upon demand as additional charges if such requirement applies
to the Premises. In addition, Lessee shall execute affidavits, representations
and the like from time to time at Lessor's request concerning Lessee's best
knowledge and belief regarding the presence of hazardous substances or materials
on the Premises. In all events, Lessee shall indemnify Lessor in the manner
elsewhere provided in this Lease from any release of hazardous materials on the
Premises occurring while Lessee is in possession, or elsewhere if caused by
Lessee or persons acting under Lessee. The within covenants shall survive the
expiration or earlier termination of the term of this Lease.

         S.       All obligations of Lessee hereunder not fully performed as of
the expiration or earlier termination of the term of this Lease shall survive
the expiration or earlier termination of the term hereof, including, without
limitation, all payment obligations with respect to Operating Expenses and Real
Estate Taxes and all obligations concerning the condition of the Premises.

Scottsdale Northsight/JDA Software
04/26/98: 531637.1827-0801

                                      -30-

<PAGE>

         T.       Any claim which Lessee may have against Lessor for default in
performance of any of the obligations herein contained to be kept and performed
by Lessor shall be deemed waived unless such claim is asserted by written notice
thereof to Lessor within thirty (30) days of commencement of the alleged default
or of accrual of the cause of action. Furthermore, Lessee agrees to look solely
to Lessor's interest in the Office Complex, including the rents therefrom, for
the recovery of any judgment from Lessor, it being agreed that Lessor, or if
Lessor is a partnership, its partners whether general or limited, or if Lessor
is a corporation, its directors, officers or shareholders, or if Lessor is a
limited liability company, its members, shall never be_ personally liable for
any such judgment.

         U.       Lessee shall furnish to Lessor promptly upon demand, a
corporate resolution, proof of due authorization of partners, or other
appropriate documentation reasonably requested by Lessor evidencing the due
authorization of Lessee to enter into this Lease.

         V.       This Lease shall not be deemed or construed to create or
establish any relationship or partnership or joint venture or similar
relationship or arrangement between Lessor and Lessee hereunder.

         W.       Lessee shall in all respects comply with the Americans With
Disabilities Act of 1990 (42 U.S.C. Section 12101 et seq.), as the same may be
amended from time to time (as amended, the "ADA"), and Lessee agrees to
indemnify and save Lessor and its managing agent harmless against and from any
and all claims, loss, damage and expense by or on behalf of any person or
persons, firm or firms, corporation or corporations, arising from any failure or
alleged failure of Lessee to comply with the ADA or arising from any claim made
under the ADA in connection with the Premises, and from and against all costs,
reasonable attorneys' fees, expenses and liabilities incurred in or about any
such claim or action or proceeding brought thereon; in case any action or
proceeding be brought against Lessor or its managing agent by reason of any such
claim. Lessee, upon notice from Lessor, covenants to resist or defend such
action or proceeding by counsel reasonably satisfactory to Lessor.

         X.       Lessee shall not place, or permit to be placed or maintained,
on any exterior door, wall or window of the Premises any sign, awning or canopy,
or advertising matter or other thing of any kind, and will not place or maintain
any decoration, lettering or advertising matter on the glass of any window or
door, or that can be seen through the glass, of the Premises except as
specifically approved in writing by Lessor. Lessee further agrees to maintain
such sign, awning, canopy, decoration, lettering, advertising matter or thing as
may be approved, in good condition and repair at all times. Lessee agrees at
Lessee's sole cost, that any Lessee sign will be maintained in strict
conformance with Lessor's sign criteria, if any, as to design, material, color,
location, size, letter style, and method of installation.

ARTICLE XVII. MISCELLANEOUS TAXES: Lessee shall pay, prior to delinquency, all
taxes assessed or levied upon its occupancy of the Premises, or upon the trade
fixtures, furnishings, equipment and all other personal property of Lessee
located in the Premises, and when possible. Lessee shall cause such trade
fixtures, furnishings, equipment and other personal property to be assessed and
billed separately from the property of Lessor. In the event any or all of
Lessee's trade fixtures, furnishings, equipment or other personal property, or
Lessee's occupancy of the Premises, shall be assessed and taxed with the
property of Lessor, Lessee shall pay to Lessor its share of such taxes within
ten (10) days after delivery to Lessee by Lessor of a statement in writing
setting forth the amount of such taxes applicable to Lessee's personal property.

ARTICLE XVIII. OTHER PROVISIONS: The following are made a part hereof, with the
same force and effect as if specifically set forth herein:

Scottsdale Northsight/JDA Software
04/26/98: 531637.1827-0801

                                      -31-

<PAGE>

         A.     Site Plan - Exhibit A.
         A-l.   Floor Plan - Exhibit A-l
         A-2.   Phase II Site Plan - Exhibit A-2
         B.     Building Rules and Regulations - Exhibit B.
         C.     Rider To Lease - Exhibit C.
         D.     [RESERVED]
         E.     Total Project Cost Illustrative Calculation - Exhibit E.
         F.     Base Building Plans - Exhibit F

         IN WITNESS WHEREOF, the parties have executed this Lease as of the day
and year first above written.

LESSOR:                                         LESSEE:

OPUS WEST CORPORATION, a                        JDA SOFTWARE GROUP, INC., a
Minnesota corporation                           Delaware corporation

By /s/ Thomas W. Roberts                          By /s/ JM PAD
   --------------------------------                  ---------------------------
   Thomas W. Roberts                                 Name FREDERACK M. PATIS
   Its President                                     Print _____________________
                                                     Its: Co-Chairman

Scottsdale Northsight/JDA Software
04/26/98: 531637.1827-0801

                                      -32-

<PAGE>

                                   EXHIBIT A

                                   SITE PLAN

                             [PHASE ONE SITE PLAN]

                                   Phase One
                                10.13 acres net
                              136,000 sf rentable
                           816 spaces(6.0:1000 rent.)

[DFD LOGO]                         Northsight Office                 [OPUS LOGO]
DFD Architecture                  Scottsdale, Arizona
4201 N, 24th Street, Suite 100
Phoenix Arizona 85016
Phone (602) 957-4758
FAX (602) 957-9603

Scottsdale Northsight/JDA Software
04/26/98: 531637.1827-0801

                                   Exhibit A

                                 (Page 1 of 1)

<PAGE>

                                  EXHIBIT A-1

                                   FLOOR PLAN

                               [FIRST FLOOR PLAN]

[OPUS LOGO]                       FIRST FLOOR
OPUS Architects & Engineers, Inc,.

Scottsdale Northsight/JDA Software
04/26/98: 531637.1827-0801

                                  Exhibit A-1

                                 (Page 1 of 3)
<PAGE>

                                  EXHIBIT A-1

                                   FLOOR PLAN

                               [SECOND FLOOR PLAN]

[OPUS LOGO]                       SECOND FLOOR
OPUS Architects & Engineers, Inc,.

Scottsdale Northsight/JDA Software
04/26/98: 531637.1827-0801

                                  Exhibit A-1

                                 (Page 2 of 3)

<PAGE>

                                  EXHIBIT A-1

                                   FLOOR PLAN

                               [THIRD FLOOR PLAN]

[OPUS LOGO]                        THIRD FLOOR
OPUS Architects & Engineers, Inc,.

Scottsdale Northsight/JDA Software
04/26/98: 531637.1827-0801

                                   Exhibit A-1

                                  (Page 3 of 3)

<PAGE>

                                   EXHIBIT A-2

                               PHASE II SITE PLAN

                             [PHASE TWO SITE PLAN]

                                   Phase Two(A)
                                 15.0 acres net
                              272,000 af rentable
                          1,632 spaces(6.0:1000 rent.)

Scottsdale Northsight/JDA Software
04/26/98: 531637.1827-0801

                                   Exhibit A-2

                                  (Page 1 of 1)
<PAGE>

                                    EXHIBIT B

                         BUILDINGS RULES AND REGULATIONS

         1.       Any sign, lettering, picture, notice or advertisement
installed on or in any part of the Premises and visible from the exterior of the
Office Complex, or visible from the exterior of the Premises, shall be installed
at Lessee's sole cost and expense, and in such manner, character and style as
Lessor may approve in writing. In the event of a violation of the foregoing by
Lessee, Lessor may remove the same without any liability and may charge the
expense incurred by such removal to Lessee.

         2.       No awning or other projection shall be attached to the outside
walls of the Office Complex. No curtains, blinds, shades or screens visible from
the exterior of the Office Complex or visible from the exterior of the Premises
shall be attached to or hung in, or used in connection with, any window or door
of the Premises without the prior written consent of Lessor. Such curtains,
blinds, shades, screens or other fixtures must be of a quality, type, design and
color, and attached in the manner, approved by Lessor.

         3.       Lessee and its servants, employees, customers, invitees and
guests shall not obstruct sidewalks, entrances, passages, corridors, vestibules,
halls, elevators or stairways in and about the Office Complex which are used in
common with other tenants and their servants, employees, customers, guests and
invitees and which are not a part of the Premises of Lessee. Lessee shall not
place objects against glass partitions or doors or windows which would be
unsightly from the Office Complex corridors or from the exterior of the Office
Complex and will promptly remove any such objects upon notice from Lessor.

         4.       Lessee shall not make excessive noises, cause disturbances or
vibrations or use or operate any electrical or mechanical devises that emit
excessive sound or other waves or disturbances, and Lessee shall not create
obnoxious odors (including cigarette, cigar and pipe smoke), any of which may be
offensive to the other tenants and occupants of the Office Complex, or that
would interfere with the operation of any device, equipment, radio, television
broadcasting or reception from or within the Office Complex or elsewhere and
shall not place or install any projections, antennas, aerials or similar devices
inside or outside of the Premises or on the Office Complex.

         5.       Lessee shall not waste electricity, water or air conditioning
and shall cooperate fully with Lessor to insure the most effective operation of
the Office Complex's heating and air conditioning systems and shall refrain from
attempting to adjust any controls other than unlocked room thermostats, if any,
installed for Lessee's use. Lessee shall keep corridor doors closed.

         6.       Lessee assumes full responsibility for protecting its space
from theft, robbery and pilferage, which includes keeping doors locked and other
means of entry to the Premises closed and secured after normal business hours.

         7.       No person or contractor not employed by Lessor shall be used
to perform janitorial work, window washing, cleaning, maintenance, repair or
similar work in the Premises without the written consent of Lessor.

         8.       In no event shall Lessee bring into the Office Complex
inflammables, such as gasoline, kerosene, naphtha and benzine, or explosives or
any other article of intrinsically dangerous nature. If, by reason of the
failure of Lessee to comply with the provisions of this subparagraph, any
insurance premium for all or

Scottsdale Northsight/JDA Software
04/26/98: 531637.1827-0801

                                    Exhibit B

                                  (Page 1 of 4)

<PAGE>

any part of the Office Complex shall at any time be increased, Lessee shall make
immediate payment of the whole of the increased insurance premium, without
waiver of any of Lessor's other rights at law or in equity for Lessee's breach
of this Lease.

         9.       Lessee shall comply with all applicable federal, state and
municipal laws, ordinances and regulations and building rules and shall not
directly or indirectly make any use of the Premises which may be prohibited by
any of the foregoing or which may be dangerous to persons or property or may
increase the cost of insurance or require additional insurance coverage.

         10.      Lessor shall have the right to prohibit any advertising by
Lessee which in Lessor's reasonable opinion tends to impair the reputation of
the Office Complex or its desirability as an office complex for general office
use, and upon written notice from Lessor, Lessee shall refrain from or
discontinue such advertising.

         11.      The Premises shall not be used for lodging, sleeping or for
any immoral or illegal purpose.

         12.      Lessee and Lessee's servants, employees, agents, visitors and
licensees shall observe faithfully and comply strictly with the foregoing rules
and regulations and such other and further appropriate rules and regulations as
Lessor or Lessor's agent may from time to time adopt. Reasonable notice of any
additional rules and regulations shall be given in such manner as Lessor may
reasonably elect.

         13.      Unless expressly permitted by Lessor, no additional locks or
similar devices shall be attached to any door or window and no keys other than
those provided by Lessor shall be made for any door. If more than two keys for
one lock are desired by Lessee, Lessor may provide the same upon payment by
Lessee. Upon termination of this Lease or of Lessee's possession, Lessee shall
surrender all keys of the Premises and shall explain to Lessor all combination
locks on safes, cabinets and vaults.

         14.      Any carpeting cemented down by Lessee shall be installed with
a releasable adhesive. In the event of a violation of the foregoing by Lessee,
Lessor may charge the expense incurred by such removal to Lessee.

         15.      The water and wash closets, drinking fountains and other
plumbing fixtures shall not be used for any purpose other than those for which
they were constructed, and no sweepings, rubbish, rags, coffee grounds or other
substances shall be thrown therein. All damages resulting from any misuse of the
fixtures shall be borne by the lessee who, or whose servants, employees, agents,
visitors or licensees, shall have caused the same. No person shall waste water
by interfering or tampering with the faucets or otherwise.

         16.      No electrical circuit for any purpose shall be brought into
the Premises without Lessor's written permission specifying the manner in which
same may be done.

         17.      No dog (other than seeing eye dogs) or other animal, shall be
allowed in offices, halls, corridors or elsewhere in the Office Complex. No
bicycles or other vehicles shall be allowed in the Buildings of the Office
Complex.

         18.      Lessee shall not throw anything out of the door or windows or
down any passageways or elevator shafts.

         19.      All loading, unloading, receiving or delivery of goods,
supplies or disposal of garbage or refuse shall be made only through entryways
and freight elevators provided for such purposes and indicated by Lessor. Lessee
shall be responsible for any damage to the Office Complex or the property of its
employees or

Scottsdale Northsight/JDA Software
04/26/98: 531637.1827-0801

                                    Exhibit B

                                  (Page 2 of 4)

<PAGE>

others and injuries sustained by any person whomsoever resulting from the use or
moving of such articles in or out of the Premises, and shall make all repairs
and improvements required by Lessor or governmental authorities in connection
with the use of such articles.

         20.      All safes, equipment or other heavy articles shall be carried
in or out of the Premises only at such time and in such manner as shall be
prescribed in writing by Lessor, and Lessor shall in all cases have the right to
specify the proper position of any such safe, equipment or other heavy article,
which shall only be used by Lessee in a manner which will not interfere with or
cause damage to the Premises or the Office Complex or to the other tenants or
occupants of the Office Complex. Lessee shall be responsible for any damage to
the Office Complex or the property of its employees or others and injuries
sustained by any person whomsoever resulting from the use or moving of such
articles in or out of the Premises, and shall make all repairs and improvements
required by Lessor or governmental authorities in connection with the use or
moving of such articles.

         21.      Canvassing, soliciting and peddling in the Office Complex is
prohibited and all tenants of the Office Complex shall cooperate to prevent the
same.

         22.      Vending machines shall not be installed without permission of
Lessor; provided, however, Lessor consents to the installation of vending
machines in the pantry or kitchen area of the Premises for the dispensing of
soda and other similar drinks to Lessee's employees and guests.

         23.      Wherever in these Building Rules and Regulations the word
"Lessee" occurs, it is understood and agreed that it shall mean Lessee and
Lessee's associates, agents, clerks, servants and visitors. Wherever the word
"Lessor" occurs, it is understood and agreed that it shall mean Lessor and
Lessor's assigns, agents, clerks, servants and visitors.

         24.      Lessor shall have the right, upon twenty-four (24) hours
advance notice, to enter upon the Premises at all reasonable hours for the
purpose of inspecting the same, provided that Lessor shall not disrupt
materially, Lessee's use and enjoyment of the Premises as a result.

         25.      Lessee and its servants, employees, customers, invitees and
guests shall, when using the common parking facilities, if any, in and around
the Office Complex, observe and obey all signs regarding fire lanes and no
parking zones, and when parking, shall always park between the designated lines.
Lessor reserves the right to tow away, at the expense of the owner, any vehicle
which is improperly parked or parked in a no parking zone. All vehicles shall be
parked at the sole risk of the owner, and Lessor assumes no responsibility for
any damage to or loss of vehicles. No vehicles shall be parked overnight for
more than three (3) consecutive days).

         26.      At all times Lessee shall have access to the Premises,
however, the Office Complex shall be in the control of Lessor's employee in
charge and (a) persons may enter the Office Complex only in accordance with
Lessor's regulations, (b) persons entering or departing from the Office Complex
may be questioned as to their business in the Office Complex, and the right is
reserved to require the use of an identification card or other access device and
the registering of such persons as to the hour of entry and departure, nature of
visit, and other information deemed necessary for the protection of the Office
Complex, and (c) all entries into and departures from the Office Complex will
take place through one or more entrances as Lessor shall from time to time
designate; provided, however, anything herein to the contrary notwithstanding,
Lessor shall not be liable for any lack of security in respect to

Scottsdale Northsight/JDA Software
04/26/98: 531637.1827-0801

                                    Exhibit B

                                  (Page 3 of 4)

<PAGE>

the Office Complex whatsoever. Lessor will normally not enforce clauses (a), (b)
and (c) above from 7:00 a.m., to 6:00 p.m., Monday through Friday, and from 8:00
a.m. to 1:00 p.m. on Saturdays, but it reserves the right to do so or not to do
so at any time at its sole discretion. In case of invasion, mob, riot, public
excitement or other commotion, Lessor reserves the right to prevent access to
the Office Complex during the continuance of the same by closing the doors or
otherwise, for the safety of the tenants or the protection of the Office Complex
and the property therein. Lessor shall in no case be liable for damages for any
error or other action taken with regard to the admission to or exclusion from
the Office Complex of any person.

         27.      All entrance doors to the Premises shall be locked when the
Premises are not in use. All corridor doors shall also be closed during times
when the air conditioning equipment in the Office Complex is operating so as not
to dissipate the effectiveness of the system or place an overload thereon.

         28.      Lessor reserves the right at any time and from time to time to
rescind, alter or waive, in whole or in part, any of these Building Rules and
Regulations when it is deemed necessary, desirable or proper, in Lessor's
judgment, for its best interest or for the best interest of the tenants of the
Office Complex.

         29.      Smoking shall be permitted only in the smoking areas located
outside of the building, as designated and redesignated from time to time by
Lessor, and Lessee and its servants, employees, customers, invitees and guests
shall not smoke anywhere at the Office Complex (other than the smoking areas
designated by Lessor), including without limitation Lessee's Premises and the
sidewalks, entrances, passages, corridors, halls, elevators and stairways of the
Office Complex.

                                                           Initials:

                                                           Lessor_______________

                                                           Lessee_______________

Scottsdale Northsight/JDA Software
04/26/98: 531637.1827-0801

                                    Exhibit B

                                  (Page 4 of 4)

<PAGE>

                                    EXHIBIT C

                              RIDER TO OFFICE LEASE

                 SCOTTSDALE NORTHSIGHT/JDA SOFTWARE GROUP, INC.

ARTICLE XX. LESSOR'S REPRESENTATIONS: Lessor represents and warrants to Lessee
as follows:

         (a)      Upon commencement of the term of this Lease, the Premises,
Building and Office Complex shall be constructed substantially in accordance
with the plans and specifications therefor, as described on Exhibit "F" hereto,
or as otherwise approved by Lessee. Such plans and specifications will comply
with all codes, ordinances, regulations and laws (including, without limitation,
the ADA) governing the construction of the Premises, Building and Office
Complex, as existing, enforced and interpreted as of the date of the issuance of
the applicable building or construction permit.

         (b)      Lessor will not incorporate into construction of the Premises
any "hazardous materials" (as contemplated in Article XVI.R), the use of which
is prohibited in construction of projects of the nature of the Building under
applicable state and federal laws, rules and regulations in effect and as
interpreted and enforced at the time construction is performed. Lessor will not
incorporate into construction of the Premises any materials which are generally
known to the construction industry at the time construction is performed to
contain hazardous material in a manner contrary to applicable federal and state
laws, rules and regulations and material safety data sheets. Upon request of
Lessee, Lessor shall provide Lessee with a copy of the Phase I Environmental
Assessment for the Building and the Property on which it is located.

         (c)      Subject to force majeure and Lessee's obligation to pay Rent,
Lessor shall cause the Office Complex to be managed, as a "Class A" project (as
that characterization is known and defined in the regional area of Scottsdale,
Arizona in which the Office Complex is located) and in a cost effective manner.

         (d)      The Building and Premises shall be constructed to maintain an
airflow and air quality consistent with the ASHREI standards applicable to a
"Class A" office building (as recognized in the greater metropolitan Scottsdale
area as of the date of this Lease), as such standards exist and are applied as
of the date of issuance of the construction permits for the Building.

         (e)      Lessor shall make no substantial changes to the site plan of
the Office Complex (as attached as Exhibit "A", hereto), without the approval of
Lessee, which approval shall not be unreasonably withheld.

ARTICLE XXI. DETERMINATION OF AREA OF PREMISES. Lessee shall lease from Lessor
the entire second (2nd) and third (3rd) floors of the Building, which as of the
date hereof, the parties agree to be approximately 95,000 rentable square feet
as the "Premises". By notice to Lessor, given prior to the date of the permit
(to be issued by the City of Scottsdale) to construct the Building (such date
herein called the "Permit Date"), Lessee may designate the Premises to include
an additional area located on the first (1st) floor of the Building, but, as a
result of, the expanded "Premises" shall not exceed 115,000 rentable square feet
in area.

ARTICLE XXII. LOCK BOX: Lessor may from time to time designate a lock box
collection agent for the collection of rents or other charges due Lessor. In
such event, the payment made by Lessee to the lock box shall be the date of
receipt by the lock box collection agent of such payment (or the date of
collection of any such

Scottsdale Northsight/JDA Software
04/26/98: 531637.1827-0801

                                    Exhibit C

                                 (Page 1 of 14)

<PAGE>

sum if payment is made in the form of a negotiable instrument thereafter
dishonored upon presentment); however, for the purpose of this Lease, no such
payment or collection shall be deemed a waiver by Lessor of any breach by Lessee
of any term, covenant or condition of this Lease nor a waiver of any of Lessor's
rights or remedies and any payment of amounts other than that deemed due and
proper by Lessor shall not prejudice Lessor in any manner nor constitute a
waiver and Lessor shall hereby be authorized to retain the proceeds of any
payments by Lessee, whether restrictively endorsed or otherwise, and apply same
to the amounts due and payable from Lessee under this Lease without waiver.

ARTICLE XXIII. PRIOR PROPOSALS: All prior proposals in respect to this Lease are
hereby terminated.

ARTICLE XXIV. USE: Lessee shall use the Premises only for general office
purposes. Notwithstanding anything to the contrary contained in this Lease,
during the term of this Lease and any extensions or renewals, Lessee shall not
use or permit any portion of the Premises to be used for (i) the operation of a
title company or title agency or for providing services typically offered by
escrow agents in connection with real estate transactions, or (ii) the discount
or retail sale and/or brokerage of securities and/or commodities, or (iii) the
operation of a bank or the provision of trust services (collectively, the
"Restricted Uses").

         Lessee shall comply with the terms of any encumbrances, covenants,
conditions, restrictions or other matters now of record or hereafter recorded
against the Office Complex.

ARTICLE XXV. CONFIDENTIALITY: Lessee agrees to keep this Lease and the terms
hereof in confidence, and not to publish or disclose, in whole or in part, the
same without Lessor's prior written consent, which consent may be withheld in
Lessor's sole discretion. This covenant of confidentiality shall include,
without limitation, all information disclosed by Lessor pursuant to the "open
book" understanding regarding the costs of the Total Project Costs. Accordingly,
all such information and disclosures shall be limited to dissemination only
among the executive officers and the construction manager of Lessee and each
such person shall be informed of this confidentiality covenant.

ARTICLE XXVI. DEFAULT OF LESSOR: In the event of any alleged breach by Lessor of
its covenants contained in this Lease, Lessee shall have available all rights
and remedies provided at law or in equity, subject to the terms and conditions
of this Lease; provided, however, Lessee may not exercise any such right or
remedy unless Lessee has notified Lessor and any party to whom notice is
required to be given pursuant to Article XV by notice of such alleged default,
and the notified party or parties have not cured such default within the thirty
(30) day period subsequent to receipt of such notice by Lessee or, in the event
such alleged default is of such a nature that it cannot reasonably be cured
within such thirty-day period, such notified party or parties have failed to
cure such alleged default with all due diligence.

ARTICLE XXVII. FINANCIAL STATEMENTS: Lessee agrees to provide to Lessor upon
Lessee's execution of this Lease and prior to Lessor executing same, and within
thirty (30) days after Lessor's request therefor at any time during the term of
this Lease, complete, accurate financial statements, currently available,
prepared according to generally accepted accounting principles consistently
applied, certified by Lessee's chief financial officer as an officer of Lessee
that same are a true, complete and correct statement of the financial condition
of Lessee as of the date of such financial statements.

ARTICLE XXVIII. COMMENCEMENT DATE MEMORANDUM; MEASUREMENT OF RENTABLE AREA:
Lessee acknowledges that the Office Complex is not constructed as of the date of
this Lease and that the Base Rent,

Scottsdale Northsight/JDA Software
04/26/98: 531637.1827-0801

                                    Exhibit C

                                 (Page 2 of 14)

<PAGE>

Lessee's Pro Rata Share of Real Estate Taxes and Operating Expenses, the Tenant
Improvement Allowance, and certain other items set forth in this Lease will be
calculated based on the useable area of the Premises, the rentable area of the
Premises, and the rentable area of the Office Complex. Further, Lessee has
certain rights to modify the total rentable area of the Premises after execution
of this Lease.

         Promptly after the commencement of the ten-year term of this Lease, a
memorandum (the "Commencement Date Memorandum") shall be prepared by Lessor and
executed by Lessor and Lessee. The Commencement Date Memorandum shall set forth
the date on which the term of this Lease commenced, the expiration date of the
initial ten-year term, the rentable area of the Premises, and the rentable area
of the Office Complex (all as certified by Lessor's architect), the Base Rent,
and the percentage initially to be used to calculate Lessee's Pro Rata Share of
Real Estate Taxes and Operating Expenses.

         Lessor's architect shall calculate and determine the rentable area of
the Premises and the Office Complex in accordance with ANSI/BOMA Z65.1 approved
June 7, 1996. Such calculation and determination may be verified by Lessee
within thirty (30) days of receipt.

ARTICLE XXIX. FUTURE DEVELOPMENT: Lessor and Lessee understand and agree that
the Office Complex as initially constructed is the first phase ("Phase I") of a
proposed two-phase integrated commercial real estate development (the second
phase is hereinafter referred to as "Phase II"). Phase II may be constructed by
Lessor, if at all, only upon the approval of Lessee, which approval may be
conditioned upon adequate assurance regarding the staging of construction and
the provision of parking during the construction. Upon substantial completion of
Phase II, the Office Complex for purposes of this Lease may, at Lessor's option,
include all of the land within Phase II and all easement areas appurtenant
thereto, and all buildings, improvements and personal property of Lessor used in
connection with the operation or maintenance thereof located therein and thereon
and the appurtenant parking facilities.

         Upon substantial completion of Phase II and election of Lessor, the
Property shall thereafter be deemed to mean the land (and all easement areas
appurtenant thereto) on which both Phase I and Phase II are located; and the
Office Complex as that term is used herein shall be deemed to mean all buildings
and improvements and personal property of Lessor used in connection with the
operation or maintenance thereof and appurtenant parking facilities located on
Phase I and Phase II.

         If Lessor so elects, upon substantial completion of Phase II and
redefinition of the terms "Property" and "Office Complex" as hereinabove
described, the percentage set forth as "Lessee's Pro Rata Share of Real Estate
Taxes and Operating Expenses" in Article II.D herein, shall be recomputed on the
basis of the rentable area of the Premises compared to the rentable area of the
Office Complex (as expanded) subject to adjustment on the basis of ninety-five
percent (95%) of the total average rentable area of the Office Complex (as
expanded) pursuant to said Article II.E.

         In no event shall this Article be deemed to require Lessor to develop
or construct Phase II (nor require Lessor to combine Phase I and Phase II as
hereinabove allowed) or any addition or modification to the Office Complex (as
originally defined herein or otherwise), nor is this intended in any manner to
be a representation or warranty that Phase II will at any time be constructed or
developed by Lessor. Subject to the approval of Lessee, Lessor shall retain the
right to increase or decrease the size of Phase I or Phase II and make other
changes to the Property and the legal description of the Office Complex in its
reasonable discretion.

Scottsdale Northsight/JDA Software
04/26/98: 531637.1827-0801

                                    Exhibit C

                                 (Page 3 of 14)

<PAGE>

         However, upon execution by Lessee of a lease agreement for not less
than sixty-five percent (65%) of the proposed building comprising Phase II, then
Lessor, or the developer chosen by Lessee, shall then commence and diligently
pursue the completion of construction of Phase II. The construction of Phase II
by Lessor shall be performed: (i) pursuant to a construction plan and schedule
which Lessor shall review with Lessee; and (ii) by Lessor using commercially
reasonable efforts to minimize the disruption to Lessee and its utilization of
the Premises. In the event the developer of Phase II (and the landlord to Lessee
for the sixty-five percent (65%) of the proposed Phase II building) is not
Lessor, then nonetheless, Lessor shall cooperate with Lessee (and its Phase II
developer) in such efforts, and shall not unreasonably withhold its consent to
such agreements (including, without limitation, a land exchange agreement to
allow the Phase II building site to be acquired by Lessee or its developer),
plats, easements, shared operating expense arrangements and parking
improvements, which are of a nature to accommodate the proposed development of
Phase II, as contemplated on the Phase II Site Plan attached hereto as Exhibit
"A-2". In any event, if Lessor is not the developer of Phase II, then it shall
not be required to pay for any improvements.

         Nothing in this Lease shall be construed to require Lessee to engage
Lessor to acquire, develop or construct Phase II, or to otherwise grant to
Lessor any exclusive rights thereto.

ARTICLE XXX. EXPANSION RIGHT: Subject to the terms and conditions set forth in
this Article XXX, Lessor hereby grants to Lessee the right ("Offer Right") to be
offered by Lessor the opportunity to lease not less than 24,000 rentable square
feet of space in the remaining rentable areas of the Building (or such lesser
area, if Lessee is then leasing, as the Premises, an area which results in less
than 24,000 rentable square feet being available in the Building) as and when
such portions become available between the sixtieth (60th) and the
seventy-second (72nd) calendar month of the term of this Lease (the "Offer Right
Period"). As a condition to this Offer Right, Lessee shall be required to give
Lessor a notice of Lessee's exercise, during the forty-seventy (47th) month of
the term of this Lease and of Lessee's waiver of its early termination rights
under Article XXXVIII. Within thirty (30) days of receipt of Lessee's exercise
notice, Lessor shall provide Lessee a description of the portions of the
Building which shall be available during the Offer Right Period and a form of
lease, or an amendment to this Lease, in regard to such portions. The Base Rent
for the additional portions shall be ninety-five percent (95%) of the then Fair
Market Value (defined in Article XXXIV, below) and the term shall be
co-terminous with the remaining term of this Lease. For a period of thirty (30)
days thereafter, the parties shall make a good faith effort to agree upon the
Fair Market Value for Base Rent of the additional portions. In the event that
Lessor and Lessee fail to agree within said thirty (30) day period, then the
Fair Market Value for Base Rent for such additional portion shall be determined
by appraisal in the manner set forth in Article XXXIV hereof. For this purpose,
however, "Fair Market Value" shall be determined by considering the amount of
tenant improvement allowance and the then remaining term of this Lease.

ARTICLE XXXI. FIRST OPTION TO EXTEND: Lessee shall have the right, subject to
the provisions hereinafter provided, to extend the term of this Lease for one
(1) period of five (5) years on the terms and provisions of this Article XXXI.
Such five-year renewal period is sometimes herein referred to as the "First
Renewal Term". The conditions of such First Renewal Term shall be as follows:

         (a)      That this Lease is in full force and effect and Lessee is not
                  in default in the performance of any of the terms, covenants
                  and conditions herein contained, in respect to which notice of
                  default has been given hereunder which has not been or is not
                  being remedied in the time limited

Scottsdale Northsight/JDA Software
04/30/98: 532732.1827-0801

                                    Exhibit C

                                 (Page 4 of 14)

<PAGE>

                  in this Lease, at the time of exercise of the right of
                  renewal, but Lessor shall have the right at its sole
                  discretion to waive the non-default conditions herein.

         (b)      That such First Renewal Term shall be on the same terms,
                  covenants and conditions as in this Lease; provided, however,
                  the annual Base Rent for such First Renewal Term shall be an
                  amount equal to 115% of the Base Rent rate for the last sixty
                  (60) months of the initial ten (10) year term of this Lease
                  per rentable square feet of the Premises.

         (c)      That Lessee shall exercise its right to the First Renewal Term
                  provided herein, if at all, by notifying Lessor in writing of
                  its election to exercise the right to renew the term of this
                  Lease no later than twelve (12) months prior to end of the
                  initial ten-year term.

ARTICLE XXXII. SECOND OPTION TO EXTEND: If and only if Lessee has exercised its
option to extend the term of this Lease for the First Renewal Term and this
Lease is in full force and effect, Lessee shall have the right, subject to the
provisions hereinafter provided, to further extend the term of this Lease for
one (1) period of five (5) years on the terms and provisions of this Article
XXXII. Such five-year renewal period, which is sometimes hereinafter referred to
as the "Second Renewal Term", shall commence on the day after the expiration of
the First Renewal Term. The conditions of such Second Renewal Term shall be as
follows:

         (a)      That this Lease is in full force and effect and Lessee is not
                  in default in the performance of any of the terms, covenants
                  and conditions herein contained, in respect to which notice of
                  default has been given hereunder which has not been or is not
                  being remedied in the time limited in this Lease, at the time
                  of exercise of the right of renewal, but Lessor shall have the
                  right at its sole discretion to waive the non-default
                  conditions herein.

         (b)      That such Second Renewal Term shall be on the same terms,
                  covenants and conditions as in this Lease; provided, however,
                  the annual Base Rent for such Second Renewal Term shall be an
                  amount equal to ninety-five percent (95%) of the Fair Market
                  Value for Base Rent rate for such space on the date such
                  renewal term shall commence in relation to comparable (in
                  quality, location and size) office space located in
                  Scottsdale, Arizona. The determination of such Fair Market
                  Value for Base Rent for the Premises shall be made no later
                  than the date that is twelve (12) months prior to the end of
                  the First Renewal Term. Provided Lessee has properly elected
                  to renew the term of this Lease, and if Lessor and Lessee fail
                  to agree at least eleven (11) months prior to the end of the
                  First Renewal Term upon the Fair Market Value for Base Rent of
                  the Premises, the Fair Market Value for Base Rent of the
                  Premises shall be determined by appraisal in accordance with
                  the provisions of Article XXXIV hereof. Notwithstanding
                  anything to the contrary contained in this Article, in no
                  event shall the Base Rent of the Premises for the Second
                  Renewal Term be less than the Base Rent (exclusive of
                  temporary abatements) payable by Lessee under the terms of
                  this Lease immediately prior to commencement of such Second
                  Renewal Term.

         (c)      That Lessee shall exercise its right to the Second Renewal
                  Term provided herein, if at all, by notifying Lessor in
                  writing of its election to exercise the right to renew the
                  term of this Lease no later than twelve (12) months prior to
                  end of the First Renewal Term. Upon notification with respect
                  to such renewal, and for a period of thirty (30) days
                  thereafter, the parties hereto

Scottsdale Northsight/JDA Software
04/26/98: 531637.1827-0801

                                    Exhibit C

                                 (Page 5 of 14)

<PAGE>

                  shall make a good faith effort to agree upon the Fair Market
                  Value for Base Rent of the Premises for such Second Renewal
                  Term. In the event that Lessor and Lessee fail to agree within
                  the thirty (30) day time period set forth in this subparagraph
                  (c), the Fair Market Value for Base Rent of the Premises for
                  such Second Renewal Term shall be determined by appraisal in
                  the manner set forth in Article XXXIV hereof. Any
                  determination by appraisal or any agreement reached by the
                  parties hereto with respect to such Fair Market Value for Base
                  Rent and resulting Base Rent of the Premises for such Second
                  Renewal Term shall be expressed in writing and shall be
                  executed by the parties hereto, and a copy thereof delivered
                  to each of the parties.

ARTICLE XXXIII. THIRD OPTION TO EXTEND. If and only if Lessee has exercised its
option to extend the term of this Lease for the Second Renewal Terms and this
Lease is in full force and effect, Lessee shall have the right, subject to the
provisions hereinafter provided, to further extend the term of this Lease for
one (1) period of five (5) years on the terms and provisions of this Article
XXXIII. Such five-year renewal period, which is sometimes hereinafter referred
to as the "Third Renewal Term", shall commence on the day after the expiration
of the Second Renewal Term. The conditions of such Third Renewal Term shall be
as follows:

         (a)      That this Lease is in full force and effect and Lessee is not
                  in default in the performance of any of the terms, covenants
                  and conditions herein contained, in respect to which notice of
                  default has been given hereunder which has not been or is not
                  being remedied in the time limited in this Lease, at the time
                  of exercise of the right of renewal, but Lessor shall have the
                  right at its sole discretion to waive the non-default
                  conditions herein.

         (b)      That such Third Renewal Term shall be on the same terms,
                  covenants and conditions as in this Lease; provided, however,
                  the annual Base Rent for such Third Renewal Term shall be an
                  amount equal to ninety-five percent (95%) of the Fair Market
                  Value for Base Rent rate for such space on the date such
                  renewal term shall commence in relation to comparable (in
                  quality, location and size) office space located in
                  Scottsdale, Arizona. The determination of such Fair Market
                  Value for Base Rent for the Premises shall be made no later
                  than the date that is twelve (12) months prior to the end of
                  the Second Renewal Term. Provided Lessee has properly elected
                  to renew the term of this Lease, and if Lessor and Lessee fail
                  to agree at least eleven (11) months prior to the end of the
                  Second Renewal Term upon the Fair Market Value for Base Rent
                  of the Premises, the Fair Market Value for Base Rent of the
                  Premises shall be determined by appraisal in accordance with
                  the provisions of Article XXXIV hereof. Notwithstanding
                  anything to the contrary contained in this Article, in no
                  event shall the Base Rent of the Premises for the Third
                  Renewal Term be less than the Base Rent (exclusive of
                  temporary abatements) payable by Lessee under the terms of
                  this Lease immediately prior to commencement of such Third
                  Renewal Term.

         (c)      That Lessee shall exercise its right to the Third Renewal Term
                  provided herein, if at all, by notifying Lessor in writing of
                  its election to exercise the right to renew the term of this
                  Lease no later than twelve (12) months prior to end of the
                  Second Renewal Term. Upon notification with respect to such
                  renewal, and for a period of thirty (30) days thereafter, the
                  parties hereto shall make a good faith effort to agree upon
                  the Fair Market Value for Base Rent of the Premises for such
                  Third Renewal Term. In the event that Lessor and Lessee fail

Scottsdale Northsight/JDA Software
04/26/98: 531637.1827-0801

                                    Exhibit C

                                 (Page 6 of 14)

<PAGE>

                  to agree within the thirty (30) day time period set forth in
                  this subparagraph (c), the Fair Market Value for Base Rent of
                  the Premises for such Third Renewal Term shall be determined
                  by appraisal in the manner set forth in Article XXXIV hereof.
                  Any determination by appraisal or any agreement reached by the
                  parties hereto with respect to such Fair Market Value for Base
                  Rent and resulting Base Rent of the Premises for such Third
                  Renewal Term shall be expressed in writing and shall be
                  executed by the parties hereto, and a copy thereof delivered
                  to each of the parties.

ARTICLE XXXIV. APPRAISAL: Within seven (7) days after the expiration of the
period within which Lessor and Lessee were to reach agreement on the Fair Market
Value for Base Rent as provided in Article XXXII, Article XXXIII or Article
XXXV, Lessor and Lessee shall mutually appoint an appraiser that has at least
five (5) years full-time commercial appraisal experience and is a member of the
American Institute of Real Estate Appraisers. If Lessor and Lessee are unable to
agree upon an appraiser, either of the parties to this Lease, after giving five
(5) days prior written notice to the other party, may apply to the then
president of the Phoenix Board of Realtors for the selection of an appraiser who
meets the foregoing qualifications, which selection shall be made within fifteen
(15) days. The appraiser selected by the president of the Board of Realtors
shall be a person who has not previously acted in any capacity for either party,
its affiliates or leasing agents and who meets the above experience
qualifications. Lessor and Lessee shall each, within seven (7) days of the
appointment (either by agreement or selection) of the appraiser, submit to the
appraiser such parties' determination of the Fair Market Value for Base Rent for
purposes of Article XXXII, Article XXXIII or Article XXXV, as the case may be.
Within twenty (20) days after the conclusion of the above-referenced seven-day
period, the appraiser shall review each of the Lessor's and Lessee's submittals
and shall review such other information as such appraiser shall deem necessary
(a party may furnish the appraiser with any information it deems relevant) and
shall determine which of the two submittals is the more reasonable. The
appraiser shall immediately notify the parties of his or her selection, and such
selection shall be the Base Rent of the Premises for the Second Renewal Term or
the Third Renewal Term, as the case may be. If, upon the expiration of the
above-referenced seven-day period, the appraiser shall have received one of the
party's submittals as to the Fair Market Value for Base Rent, but not both, the
appraiser shall designate the submitted item as the Base Rent for the Second
Renewal Term or the Third Renewal Term, as the case may be, and the appraiser
shall immediately notify the parties of same. Notwithstanding the foregoing two
sentences, in no event shall the Base Rent of the Premises for the Second
Renewal Term or the Third Renewal Term be less than the Base Rent (exclusive of
temporary abatements) payable by Lessee under the terms of this Lease
immediately prior to commencement of the applicable renewal term.

         For purposes of this Lease, the parties intend for the "Fair Market
Value" for Base Rent to be the prevailing rental rate then being obtained by
Lessor (or that Lessor would then be able to obtain) under leases of comparable
space within the Office Complex for a comparable term (including any renewal
terms that have then been exercised by Lessee). In determining the Fair Market
Value, the parties shall consider the prevailing rental rate that is then being
obtained (or would be able to be obtained) by other landlords of buildings
similar to the Office Complex located in the same regional Scottsdale area under
leases of comparable space for a comparable term. In determining the Fair Market
Value, adjustments shall be made to account for (a) the difference, if any,
between (i) the amount of tenant improvement allowance, free rent and other
tenant inducements that Lessor and such other landlords are (or would be)
required to grant under leases, and (ii) the amount of tenant improvement
allowance, free rent and other tenant

Scottsdale Northsight/JDA Software
04/26/98: 531637.1827-0801

                                    Exhibit C

                                 (Page 7 of 14)

<PAGE>

inducements to which Lessee will be entitled under this Lease for the subject
space and term (and, for purposes of such adjustment when determining the Fair
Market Value for any renewal term, Lessor shall be deemed to have granted Lessee
a tenant improvement allowance in an amount equal to the replacement value of
the then-existing leasehold improvements in the Premises); and (b) the amount of
Operating Expenses and Real Estate Taxes per square foot of rentable area that
Lessor and such other landlords are (or would be) required to pay under the
leases at such prevailing rental rate.

ARTICLE XXXV. FIRST RIGHT OF OFFER. Subject to the terms and conditions set
forth in this Article XXXV, Lessor hereby grants to Lessee the first right
("First Right") to be offered by Lessor to lease certain portions of the
Building. However, except for the Premises leased to Lessee at the commencement
of the term of this Lease, Lessee agrees that the First Right shall apply only
to the balance of the leasable area in the Building (not so leased by Lessee)
and only after the expiration or earlier termination of leases with third party
tenants, procured by Lessor as the initial or subsequent occupants of such
balance. If, at any time while this First Right is in effect, Lessor should
intend to lease such space to a third party tenant subsequent to the initial
third party tenant, then Lessor shall first offer to lease such space to Lessee.
In the event Lessor offers to Lease such space to Lessee pursuant to this
Article XXXV, Lessee shall notify Lessor in writing within thirty (30) days of
its receipt of Lessor's notice whether Lessee desires to offer to lease such
space from Lessor. If Lessee notifies Lessor in writing within such thirty-day
period that Lessee does not desire to lease such space, or if Lessee does not
respond in writing to Lessor's notice within such thirty-day period, then, in
either of the above instances, Lessor's obligations under this Article XXXV
shall automatically terminate as to that space at that time and Lessor shall
thereafter be entitled to lease such space. If Lessee notifies Lessor in writing
within such thirty-day period that Lessee desires to lease such space from
Lessor, the parties shall thereafter negotiate for Lessee's lease of the space
from Lessor; provided, however, that if Lessor and Lessee fail to mutually agree
upon the terms of Lessee's lease of such space and to execute a written
amendment to this Lease within ten (10) business days of the date of Lessee's
receipt of written notice (which amendment shall contain the terms mutually
agreed to by the parties for Lessee's lease of such space), then Lessor's
obligations under this Article XXXV shall automatically terminate and be of no
further force or effect at the end of such ten (10) business days period with
respect to such space, until after it has again been leased to a third party
tenant. This First Right described herein is intended by the parties to be valid
throughout the term of this Lease, including any renewals of said term, however,
the terms of any amendment to include any additional space within the "Premises"
shall consider the remaining term of this Lease, and to appropriately prorate
(and thereby reduce) any concessions or allowances otherwise made by Lessor, so
as to result in a realization by Lessor of a substantially equivalent economic
return in regard to the additional space. The purpose of this Article is to
provide notice to Lessee so that Lessee may be in a position to offer to lease
such space on a competitive basis with others, and, notwithstanding anything to
the contrary contained in this Article XXXV, nothing in this Article XXXV shall
be deemed to be an option or right of first refusal.

ARTICLE XXXVI. SIGNAGE AND NAMING RIGHTS: Provided Lessee at its cost receives
all necessary governmental and quasi-governmental approvals therefor, Lessor
shall allow Lessee to erect a sign on the exterior of the Office Complex, in a
location designated by Lessor, which sign shall be Lessee's name and the
building designation sign. Lessee shall also have the right to designate the
name for the Office Complex. Lessor shall pay for the procurement and
installation of such signage to the extent the

Scottsdale Northsight/JDA Software
04/26/98: 531637.1827-0801

                                    Exhibit C

                                 (Page 8 of 14)

<PAGE>

plans and specifications set forth in Exhibit "F" require Lessor to procure or
install such signage. Lessee shall pay all annual and other permit fees
therefor, shall pay all costs of maintenance thereof, shall keep same in good
condition, order and repair at its sole cost and expense, shall remove same
prior to termination of this Lease, and shall repair and restore any damage to
the Office Complex caused by such installation and/or removal. Any such sign,
and the display of Lessee's name thereon, shall be subject to the terms of any
restrictive covenants applicable thereto and all applicable laws, ordinances
and regulations. Lessor and Lessee shall approve the comprehensive sign program
to be submitted to the City of Scottsdale for approval. Lessor expressly
reserves the right to erect additional signs on the exterior of the Office
Complex, for the benefit of the other tenants, however, the size, location and
appearance of such signage shall be subject to Lessee's approval, which shall
not be unreasonably withheld, delayed or conditioned. The signage rights of
Lessee and of Lessor shall be proportionate, in area, based upon the relative
areas of the Office Complex (i) of the Premises, and (ii) of the remainder of
the rentable area of the Office Complex.

ARTICLE XXXVII. TENANT IMPROVEMENTS:

         A.       Lessor is providing the existing base building (pursuant to
the schedule of base building plan attached hereto as Exhibit "F") and a tenant
improvement allowance of $30.00 per usable square foot (the "Tenant Improvement
Allowance") for the tenant improvements to be constructed by Lessor at the
Premises. All improvements to the existing base building will be so-called
"Tenant Improvements" to be installed by Lessor but to be selected by Lessee as
hereinafter provided and paid for by Lessee subject to Lessor providing an
allowance in the aforesaid amount. Included within the Tenant Improvement
Allowance shall be all costs for space planning, construction document
preparation, design work and construction drawing work and all costs of
obtaining permits. In the event Lessee desires any Tenant Improvements having a
price in excess of the Tenant Improvement Allowance, Lessee shall pay Lessor in
cash for such excess amount or, at Lessee's option, such excess amount (up to
$7.00 per rentable square foot of the Premises) may be paid by Tenant in equal
monthly installments over the Initial Term, with an annual interest rate thereon
of nine percent (9%), in which case, such excess amount shall be deemed to be
included in the Tenant Improvement Allowance. If Lessee requests a higher grade
or quality of any component of the Tenant Improvements (if any) otherwise
provided by Lessor pursuant to the plans and specifications of Exhibit "F",
Lessor will allow a credit for the cost of the component replaced. The balance
of the amount by which the cost of the Tenant Improvements exceeds the Tenant
Improvement Allowance shall be paid for in cash by Lessee to Lessor upon
substantial completion of the Tenant Improvements. In the event the actual cost
of the Tenant Improvements is less than the Tenant Improvement Allowance
(without regard to the $7.00 per rentable square foot additional amount), the
difference between the actual cost of such Tenant Improvements and the Tenant
Improvement Allowance shall be available to Lessee as a credit against Base Rent
due from Lessee to Lessor. Opus West Construction Corporation shall be the
general contractor for all Tenant Improvement work. All major subcontracts shall
be competitively bid.

         B.       On or before June 17, 1998, Lessee shall provide to Lessor a
space plan for the Tenant Improvements to be constructed by Lessor, which space
plan shall have received final approval of Lessee and which shall be adequate
for preparation by Lessor of working drawings for construction of such Tenant
Improvements. Such space plan shall show in reasonable detail the design and
appearance of the tenant finishing materials to be used in the construction
thereof, and such other detail or description as may be necessary to adequately
outline the scope of the Tenant Improvements. If Lessee shall provide Lessor
with Lessee's space plan after June 17, 1998, then the Target Commencement Date
(April

Scottsdale Northsight/JDA Software
04/26/98: 531637.1827-0801

                                    Exhibit C

                                 (Page 9 of 14)

<PAGE>

1, 1999) shall be automatically extended day-for-day for each day of delay after
June 17, 1998.

         C.       Lessor's architect (which shall be selected by Lessee from the
list of architects already approved by Lessor) shall prepare the final working
drawings and specifications for the construction and installation of the Tenant
Improvements. Lessee shall approve or disapprove the final working drawings and
specifications within ten working days after receipt of same, and if Lessee
fails to approve or disapprove same within such ten working day period, Lessee
shall be deemed to have approved the final working drawings and specifications.
Lessee agrees that it will not withhold its approval except for just and
reasonable cause and will not act in an arbitrary or capricious manner with
respect to the approval of the final working drawings and specifications.
Lessor's architect shall review and seal said plans and submit the plans for
permits and construction bids.

         D.       Subject to the provisions of Article XXXVII.G., below, if
Lessee desires to make revisions to the final working drawings and
specifications once they have been approved, Lessee shall request that Lessor's
architect prepare, and submit to Lessor for approval, proposed working drawings
and specifications containing all such desired revisions. Upon approval by
Lessor of any revisions, Lessor shall obtain promptly from its contractor the
amount of any adjustment in the Tenant Improvement costs resulting from such
revisions and the amount of any delay that would result from constructing such
proposed revisions, and Lessor shall submit the amount thereof and the
contemplated delay caused thereby to Lessee for Lessee's approval. Lessee shall
approve or disapprove the amount of such adjustment and the delay caused thereby
within two working days after submission thereof to Lessee by Lessor, and if
Lessee fails to notify Lessor of its disapproval within such two working day
period, Lessee shall be deemed to have given Lessee's approval thereto. If
Lessee disapproves either the amount of such adjustment or the delay resulting
therefrom, then such proposed revision shall be deemed withdrawn by Lessee and
Lessor shall have no obligation to cause the construction of such revision. Once
any adjustment and the resulting delay have been approved, Lessee shall be
deemed to have given full authorization to Lessor to proceed with the work of
constructing and installing the Tenant Improvements in accordance with the final
working drawings and specifications, as revised.

         E.       Lessor shall use its best faith efforts to cause the
construction of the Office Complex, the Premises or the Tenant Improvements to
be substantially completed, subject only to completion of punchlist items, on or
before fifteen (15) days prior to the Target Commencement Date; provided,
however, that if any delay is caused or contributed to by Lessee (which shall
include delays described above relating to the failure of Lessee to submit the
required plans by June 17, 1998 or to respond timely to approve the final
working drawings and specifications and shall also include any delays caused by
any Lessee-proposed revisions to the final working drawings and specifications),
or in the event performance by Lessor is delayed due to force majeure, which
shall include, without limitation, act or neglect of Lessee or those acting for
or under Lessee ("Lessee Delay"), labor disputes, casualties, acts of God or the
public enemy, governmental embargo restrictions, shortages of fuel, labor or
building materials, action or nonaction of public utilities, or of local, state
or federal governments affecting the Tenant Improvements or other causes beyond
Lessor's reasonable control), then the Target Commencement Date shall be
automatically extended day-for-day for each day of any such delay.

         F.       The price charged by Lessor to Lessee for the Tenant
Improvements shall be all direct and indirect costs thereof plus three percent
(3%) as a development fee, five percent (5%) for Lessor's overhead and profit
and five percent (5%) as a fixed-fee

Scottsdale Northsight/JDA Software
04/26/98: 531637.1827-0801

                                    Exhibit C

                                 (Page 10 of 14)

<PAGE>

general conditions cost, in connection with the construction of the Tenant
Improvements. Lessee shall be responsible for Lessor's costs (including lost
rent) arising out of delays in completing the Tenant Improvements caused by
Lessee. Lessee also agrees to refrain from ordering long lead time items which
would delay substantial completion of the Tenant Improvements. For purposes of
this Article, "long lead time items" shall mean items required to complete the
Tenant Improvements that may delay substantial completion beyond the date which
is fifteen (15) days prior to the Target Commencement Date due to causes such as
an extended length of time necessary for the supplier of the item to manufacture
same or due to a lengthy shipping time. Lessor shall give notice to Lessee as
soon as practicable, to identify any items constituting "long lead time items."

         G.       From time to time, Lessee may request reasonable modifications
of the plans and specifications of the final working drawings for the Tenant
Improvements, or to the plans and specifications set forth on Exhibit "F"
attached hereto. Lessor reserves the right to reject such request if the request
requires a substantial modification of the structural aspects or primary systems
of the Building, a substantial delay in the completion of the construction, or a
substantial increase in the costs of construction. As soon as reasonably
possible after receipt of such request (if not rejected for the foregoing
reasons), Lessor shall prepare a change order which shall describe the
modification requested and the additional costs and delays, if any, which shall
result and the time period for Lessee to review and accept the change order.
Further, Lessor shall be entitled to propose, as a condition to Lessor's
agreement to the change order, a modification of the provisions of Article IV,
so that as a result of the delays anticipated to be caused by the change order,
Lessor's liability for the Reimbursement Obligation shall not be increased. If
Lessee accepts the change order (and by implication, all modifications to the
Lease required, as proposed by Lessor and necessitated thereby), then Lessor
shall diligently proceed to construct the proposed change order improvements.
Lessee shall pay any such costs upon demand by Lessor and completion of such
change order improvements, including the fees and charges allowed in Article
XXXVII.F., above.

ARTICLE XXXVIII. TERMINATION RIGHT: Provided (a) Lessee is free from default
under the terms of this Lease on both the date Lessee delivers written notice to
Lessor as provided in subparagraph (b) of this sentence and on the last day of
the eighty-fourth (84th) month of the initial ten-year term of this Lease, and
(b) on or before the last day of the seventy-second (72nd) month of the initial
term, Lessee delivers written notice to Lessor advising Lessor that Lessee
desires to terminate this Lease as of the end of the eighty-fourth (84th) month
of the initial term, together with a payment in good funds (as a termination
payment and not as advance rent) equal to the Base Rent and Additional Rent
required to be paid by Lessee pursuant to the terms of this Lease, for the
twelve (12) month period ending on the last day of such eighty-fourth (84th)
month, plus, an amount equal to the unamortized balance of the Tenant
Improvement Allowance in excess of the $30.00 per usable square foot (provided
in Article XXXVII.A. and which is being amortized over the Initial Term at nine
percent (9%) per annum), if any, projected to exist at the end of said
eighty-fourth (84th) month, and (c) pays the Base Rent and Additional Rent when
and as due through said eighty-fourth (84th) month, then this Lease shall be
deemed to terminate on the last day of the eighty-fourth (84th) month of the
initial term.

ARTICLE XXXIX. RIGHT TO EXAMINE BOOKS AND RECORDS OF LESSOR: Lessor hereby
agrees, at Lessee's request, to make available to Lessee for its inspection and
examination all of the books and records that relate to Lessor's statement as to
Lessee's Pro Rata Share of Real Estate Taxes and Lessee's Pro Rata Share of
Operating Expenses. Lessor also agrees to make the aforementioned books and
records available to a certified public accountant, selected by Lessee, for
review and audit if Lessee so elects. If Lessee elects to audit such costs and
expenses and Lessor's statement is found to be in error, the appropriate party
shall pay to the other such payment as may be required based upon such audit.
Further, if Lessee elects to audit such costs and expenses as provided above and
Lessor's statement is found to be in error by more than ten

Scottsdale Northsight/JDA Software
04/30/98: 532732.1827-0801

                                    Exhibit C

                                 (Page 11 of 14)

<PAGE>

percent (10%), then Lessor shall pay the reasonable costs of such audit not to
exceed $2,500. Lessee's right to audit and obtain reimbursement of any
erroneously charged amount of Real Estate Taxes or Operating Expenses for any
given Lease Year, shall expire as of December 31 of the following calendar year.

ARTICLE XL. CONSTRUCTION WARRANTY: Lessor shall cause Opus West Construction
Corporation ("Opus West") to guarantee the Tenant Improvements against defective
workmanship and/or materials for a period of one (1) year from the date of
substantial completion of the Tenant Improvements and Lessor shall cause Opus
West to guarantee also the Building and the Office Complex against defective
workmanship and/or materials for a period of one (1) year from the substantial
completion thereof. Lessor agrees to cause Opus West to repair or replace any
defective item in the Tenant Improvements or such other improvements occasioned
by poor workmanship and/or materials during the applicable one-year period, and
Opus West's performance of such one-year guarantee shall be the sole and
exclusive obligation of Lessor or Opus West with respect to such defective
workmanship and/or materials, and Lessee's rights to enforce such one-year
guarantee against Opus West shall be Lessee's sole and exclusive remedy with
respect to such defective workmanship and/or materials in limitation of any
contract, warranty or other rights, whether express or implied, that Lessee may
otherwise have under applicable law. To the extent warranties of any of Lessor's
subcontractors or suppliers remain enforceable after the expiration of Lessor's
one (1) year guarantee described above, Lessor shall cooperate with Lessee to
enforce same for the parties' mutual benefit. Lessor agrees to obtain a ten (10)
year warranty or bond on the roof membrane and structure from the roof supplier
and contractor.

         Subject to Articles II, XII and XIII hereof and to Lessee's obligations
hereunder, except to the extent of any damage caused by the fault or negligence
of Lessee, Lessor shall maintain and keep in good order, condition and repair
the structural components (defined as the footings and foundation, support walls
and columns and the roof structure (exclusive of the roof membrane)) of the
Building in which the Premises is located. All costs and expenses incurred in
connection therewith shall be included in Operating Expenses, except for any
capital improvements that are excluded pursuant to Article II, which excluded
capital improvements shall not be included in Operating Expenses.

ARTICLE XLI. FIXTURIZATION PERIOD: Lessor shall permit Lessee, during the
fifteen (15) day period following substantial completion of the Tenant
Improvements and prior to the commencement date of this Lease (as to all, or a
portion of the Premises if the delivery by Lessor is in phases), to commence
installing Lessee's furniture, fixtures and equipment in the Premises; provided,
however, that Lessee shall not interfere with any Tenant Improvement work then
being completed by Lessor, and provided further, however, that Lessee shall not
commence doing business in the Premises during such fifteen-day period. During
such early move-in period, Lessee agrees to comply with all provisions of this
Lease (except for the provisions relating to the payment of rent, which shall
not become effective until the commencement date of this Lease as to all, or a
portion of the Premises if the delivery by Lessor is in phases). Prior to
entering the Premises during such early move-in period, Lessee agrees that all
insurance required to be maintained by Lessee under Article VI of this Lease
shall be in full force and effect, and Lessee agrees to deliver certificates of
insurance to Lessor evidencing such insurance. All improvements, alterations,
additions and installations made by Lessee prior to the commencement date of
this Lease shall be made in strict compliance with the provisions of Article
VIII of this Lease.

ARTICLE XLII. HOLDOVER RIGHT: Lessee shall have the right, subject to the
provisions hereinafter provided, to extend the term of this Lease for one (1)
period of three (3) months after the

Scottsdale Northsight/JDA Software
04/26/98: 531637.1827-0801

                                    Exhibit C

                                 (Page 12 of 14)

<PAGE>

expiration of the initial ten-year term (or after any renewal options
thereafter) on the terms and provisions of this Article. Such three-month
renewal period is sometimes herein referred to as the "Holdover Period". The
conditions of Lessee's lease of the Premises during the Holdover Period shall be
as follows:

         (a)      That this Lease is in full force and effect and Lessee is not
                  in default in the performance of any of the terms, covenants
                  and conditions herein contained, in respect to which notice
                  of default has been given hereunder which has not been or is
                  not being remedied in the time limited in this Lease, at the
                  time of exercise of the right of renewal, but Lessor shall
                  have the right at its sole discretion to waive the non-default
                  conditions herein.

         (b)      That Lessee's lease of the Premises during the Holdover Period
                  shall be on the same terms, covenants and conditions as in
                  this Lease; provided, however, the monthly Base Rent for such
                  Holdover Period shall be an amount equal to the Base rent
                  amount, in effect immediately prior to the Holdover Period,
                  multiplied by 125%.

         (c)      That Lessee shall exercise its right to remain in possession
                  of the Premises during the Holdover Period, if at all, by
                  notifying Lessor in writing of its election to do so no later
                  than six (6) months prior to end of the initial ten-year term,
                  or any applicable and exercised renewal term.

If the Premises are not surrendered at the end of the term (as may be extended
by the preceding provisions of this Article) or sooner termination thereof,
Lessee shall indemnify Lessor against loss or liability resulting from delay by
Lessee in so surrendering the Premises, including, without limitation, claims
made by any succeeding tenants founded on such delay and any attorneys' fees
resulting therefrom.

         In the event Lessee remains in possession of the Premises after
expiration of this Lease and without the execution of a new lease and without
Lessor's written consent, Lessee shall be deemed to be occupying the Premises
without claim of right and Lessee shall pay Lessor for all costs arising out of
loss or liability resulting from delay by Lessee in so surrendering the Premises
as above provided and shall pay a charge for each day of occupancy in an amount
equal to double the Base Rent and Additional Rent (on a daily basis) payable by
Lessee under this Lease immediately prior to the expiration of this Lease.

ARTICLE XLIII. PARKING: Lessor shall construct not less than six (6) vehicular
parking spaces on the Property per 1,000 rentable square feet in the Office
Complex. Lessee (and its employees, invitees and visitors) shall be entitled to
use, without charge, six (6) vehicular parking spaces per 1,000 rentable square
feet in the Premises, of which spaces, approximately thirty-five percent (35%)
shall be covered. Subject to Lessor's approval (which shall not be unreasonably
withheld), Lessee may request Lessor to provide covered parking with respect to
a certain number of additional parking spaces to be designated by Lessee. In the
event Lessee desires and Lessor approves such covered parking, the cost incurred
by Lessor in connection with such covered parking shall be paid by Lessee within
thirty (30) days after Lessee's receipt of Lessor's written request therefor.
Lessee and Lessor shall cooperate in the designation of "reserved" and "visitor"
spaces for the exclusive benefit of Lessee and in the location of the parking;
however, any costs in such designation shall be borne solely by Lessee, and
Lessor shall have no obligation regarding the enforcement of Lessee's rights to
such parking. Lessee shall determine the number of "reserved" covered parking
spaces allocated to Lessee.

Scottsdale Northsight/JDA Software
04/26/98: 531637.1827-0801

                                    Exhibit C

                                 (Page 13 of 14)
<PAGE>

 ARTICLE XLIV. ACQUISITION CONTINGENCIES: This Lease, and Lessor's obligations
 hereunder are expressly conditioned upon Lessor's acquisition of the Property
 on terms and conditions acceptable to Lessor in its absolute discretion, on or
 before July 1, 1998. Accordingly, if Lessor shall notify Lessee on or before
 July 15, 1998, to the effect that Lessor has failed to acquire the Property,
 then in such case this condition subsequent shall be deemed failed and this
 Lease shall terminate, and neither party shall have any obligation or liability
 to the other. Lessee acknowledges receipt of that letter of intent by and
 between Lessor and Treaccar, dated March 23, 1998,' and Lessee confirms the
 acceptability thereof. Such agreement shall also include an option right to
 acquire a parcel of approximately 5 acres in size, adjacent to the Property,
 and such option shall provide that it shall be freely assignable from Lessor to
 Lessee, upon mere notice by Lessee.

 ARTICLE XLV. INDEMNITY BY LESSOR: Lessor agrees to indemnify and save Lessee
 harmless against and from any and all claims, loss, damage and expense by or on
 behalf of any person or persons, firm or firms, corporation or corporations,
 arising from any breach or default on the part of Lessor in the performance of
 any covenant or agreement on the part of Lessor to be performed, pursuant to
 the terms of this Lease, or arising from any negligence or wilful misconduct on
 the part of Lessor or its agents, contractors, servants, employees or
 licensees, or arising from any accident, injury or damage to the extent caused
 by the negligence or wilful misconduct of Lessor or its agents or employees to
 any person, firm or corporation occurring during the term of this Lease or any
 renewal thereof, in or about the Premises and the Office Complex, and from and
 against all costs, reasonable counsel fees, expenses and liabilities incurred
 in or about any such claim or action or proceeding brought thereon; and in case
 any such action or proceeding be brought against Lessee by reason of any such
 claim, Lessor, upon notice from Lessee, covenants to resist or defend such
 action or proceeding by counsel reasonably satisfactory to Lessee; provided,
 however, that notwithstanding anything to the contrary contained in this
 Article, Lessor shall not be liable for, and Lessor shall not indemnify Lessee
 against or from, (a) any consequential damages of Lessee, which shall include
 without limitation any loss of business or loss of profits, or (b) any claim
 which Lessee has waived pursuant to Article VI of this Lease, or (c) any claim
 which is not covered by, or exceeds the limits of, Lessor's general public
 liability insurance policy.

                                    Exhibit C

                                (Page 14 of 14)
<PAGE>
                         FIRST AMENDMENT TO OFFICE LEASE
                              SCOTTSDALE NORTHSIGHT

         This First Amendment to Office Lease (the "Amendment") dated as of the
30th day of June, 1998, by and between OPUS WEST CORPORATION, a Minnesota
corporation ("Lessor") and JDA SOFTWARE GROUP, INC., a Delaware corporation
("Lessee").

                                    RECITALS

         1.       By that Lease dated as of April 30, 1998 (the "Lease") by and
between Lessor and Lessee, the parties agreed to lease approximately 95,000
rentable square feet (the "Premises"), within that Office Complex to be
constructed by Lessor, west and contiguous to 87th Street and South of Raintree
Drive in Scottsdale, Arizona;

         2.       Pursuant to Article XXI. DETERMINATION OF AREA OF PREMISES OF
THE LEASE, Lessee has the right to give notice to Lessor, prior to the date of
the construction permit, to designate additional areas on the first floor of the
Building to be included as part of the Premises, and accordingly, this Amendment
shall constitute said notice by Lessee, and a revision of the area intended to
be the Premises.

         THEREFORE, for valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties agree as follows:

         A.       Notwithstanding any provision in the Lease to the contrary,
the parties agree that the Premises shall be comprised of the entire second
(2nd) and third (3rd) floor of the Building, plus (approximately) 20,000
rentable square feet located in the first floor of the Building. Exhibit A-l
attached to this Amendment sets forth the conceptual depiction and location of
the Premises as expanded hereby. Such adjustment in the rentable area of the
Premises shall be effective for all purposes referenced in the Lease, including,
without limitation, in the determination of the Lessee's Pro Rata Share of Real
Estate Taxes and Operating Expenses, the Tenant Improvement Allowance (although
said amount shall continue to be computed based upon usable square feet), the
allocation of parking rights pursuant to Article XLIII (i.e. at the rate of six
(6) spaces per 1,000 rentable square feet), and for other purposes set forth in
the Lease. Notwithstanding the foregoing, the commencement date memorandum to be
executed by the parties pursuant to Article XXVIII of the Lease shall control as
to the exact amount of rentable and usable area for the Premises.

         B.       Except as specifically modified or amended hereby, the parties
confirm and ratify the Lease as enforceable and binding in accordance with its
terms and provisions. All capitalized terms not otherwise defined herein shall
have the meanings provided in the Lease.

         IN WITNESS WHEREOF, the undersigned parties have executed this
Amendment to be effective as of the date first written above.

LESSOR:                                     LESSEE:

OPUS WEST CORPORATION, a                    JDA SOFTWARE GROUP, INC., a
Minnesota corporation                       Delaware corporation

By /s/ Thomas W. Roberts                    By /s/ Brent W. Lippman
   ----------------------                      ------------------------
   Thomas W. Roberts                           Name BRENT W. LIPPMAN
   Its President                               Print BRENT W. LIPPMAN
                                               Its : CHIEF EXECUTIVE OFFICER

<PAGE>

                                  EXHIBIT A-1

                                   FLOOR PLAN

                               [FIRST FLOOR PLAN]

                                  Exhibit A-1

                                 (Page 1 of 3)

<PAGE>

                                  EXHIBIT A-1

                                   FLOOR PLAN

                              [SECOND FLOOR PLAN]

                                  Exhibit A-1

                                 (Page 2 of 3)

<PAGE>

                                  EXHIBIT A-1

                                   FLOOR PLAN

                               [THIRD FLOOR PLAN]

                                  Exhibit A-1

                                 (Page 3 of 3)

<PAGE>

                                    EXHIBIT E

                              TOTAL PROJECT COSTS

NOTE: The five percent (5%) risk factor premium imposed upon the land cost to
compensate Lessor for the risk of Lessor's future expansion and the
corresponding speculative space shall be proportionately reduced if the portion
of the Building which is not initially leased by Lessee diminishes from 30.15%.

                                   NORTHSIGHT
                           DEVELOPMENT COST BREAKDOWN
                                  JDA SOFTWARE
                                 MARCH 10, 1998

<TABLE>
<CAPTION>
                                                                        JDA
                                                                       INITIAL
                                                                     REQUIREMENT
                                                                     95,000 RSF
                                                                    -----------
<S>                                                                 <C>
                                                                         95,000
                                                                          69.85%
LAND                           435,600 SF @ $9.50
                               $4,138,200 X 74.85%*                 $ 3,097,564

BUILDING
Shell Design                    98,835 GSF @ $ 3.00                 $   296,504
Shell Building                  98,835 GSF @ $46.18                 $ 4,564,185
Tenant Improvements             90,000 USF @ $30.00                 $ 2,700,000
                                                                    -----------

TOTAL BUILDING COSTS                                                $ 7,560,689

DEVELOPMENT COSTS

Survey                                                              $     3,493
Soil & Environmental                                                $     6,985
Real Estate Taxes                                                   $    46,463
Legal Expenses                                                      $    52,390
Advertising & Marketing                                             $         0
Development Fee @ 3%                                                $   366.406
                                                                    -----------

TOTAL DEVELOPMENT COSTS                                             $   475,737

FINANCING COSTS

Land Carry - 11 Mos. @ 8%                                           $   227,155
Construction Loan - 10.5 Mos. @ 8%                                  $   295,310
Financing Charge @ 1/2%                                             $    61.068

TOTAL FINANCING COSTS                                               $   583,532

COMMISSIONS        95,000 RSF @ 4% (1-5) & 2% (6-10)                $   400,995

DEVELOPMENT CONTINGENCY                                             $    95,000
                                                                    -----------

TOTAL PROJECT COSTS             95,000 SF @ $128.56                 $12,213,517

RATE RETURN @ 10.42%                                                x     10.42%
                                                                    -----------

ANNUAL NET RENT                                                     $ 1,272,649

NET RENT BASED ON 95,000 RSF                                        $     13.40
</TABLE>

* LANDLORD TO APPLY A FIVE PERCENT (5%) ADJUSTMENT TO THE JDA LAND ALLOCATION TO
  JUSTIFY RISK ASSOCIATED WITH TENANT'S FUTURE EXPANSION REQUIREMENT AND
  CORRESPONDING SPECULATIVE SPACE.

                                    Exhibit E
                                  (Page 1 of 1)

<PAGE>

                                    EXHIBIT F

                               BASE BUILDING PLANS

[OPUS LOGO]

                     CONCORDE COMMERCE CENTER- DRAWING LIST

<TABLE>
<CAPTION>
 No.                                  DESCRIPTION                         DATE
 ---                                  -----------                         ----
<S>                        <C>                                           <C>
CIVIL
-----
C1                         COVER SHEET GRADING AND DRAINAGE PLAN         4/28/97
C2                         GRADING AND DRAINAGE PLAN                     4/28/97
C3                         GRADING AND DRAINAGE PLAN                     4/28/97
C4                         GRADING AND DRAINAGE PLAN                     4/28/97
C5                         GRADING AND DRAINAGE PLAN                     4/28/97
C6                         GRADING AND DRAINAGE PLAN DETAILS             4/28/97
C7                         COVER SHEET WATER AND SEWER PLAN              4/28/97
C8                         WATER AND SEWER PLAN                          4/28/97
C9                         COVER SHEET PRIVATE FIRELINE PLAN             4/28/97
C10                        PRIVATE FIRELINE PLAN                         4/28/97
C11                        PRIVATE FIRELINE PLAN                         4/28/97
C12                        PRIVATE FIRELINE PLAN                         4/28/97

LANDSCAPE
---------
LA1                        COVER SHEET                                    5/7/97
LA2                        LANDSCAPE PLANS                                5/7/57
LA3                        LANDSCAPE PLANS                                5/7/97
LA4                        LANDSCAPE PLANS                                5/7/97
LA5                        IRRIGATION PLANS                               5/7/97
LA6                        IRRIGATION PLANS                               5/7/97
LA7                        IRRIGATION PLANS                               5/7/97
LA8                        DETAIL SHEET                                   5/7/97
LA9                        SPECIFICATIONS                                 5/7/97

ARCHITECTURAL
-------------
T1.1                       TITLE SHEET                                   9/22/97
A1.l                       SITE PLAN                                     9/22/97
A1.2                       SITE DETAILS                                  9/22/97
A2.1                       LEVEL ONE FLOOR PLAN                          9/22/97
A2.2                       LEVEL TWO FLOOR PLAN                          9/22/97
A2.3                       LEVEL THREE FLOOR PLAN                        9/22/97
A2.4                       ROOF PLAN                                     9/22/97
A2.5                       CORE PLAN LEVEL ONE/ENLARGED STAIR PLANS      9/22/97
A2.6                       ENLARGED CORE PLANS LEVELS TWO & THREE        9/22/97
A2.7                       ENLARGED FINISH PLAN/FINISH SCHEDULE          9/22/97
A3.1                       EXTERIOR ELEVATIONS                           9/22/97
A3.2                       ENLARGED ELEVATIONS                           9/22/97
A4.1                       STAIR/ELEVATOR SECTIONS/SECTION DETAILS       9/22/97
A4.2                       STAIR/SECTION DETAILS                         9/22/97
A4.3                       WALL SECTIONS                                 9/22/97
A4.4                       SECTIONS DETAILS                              9/22/97
A5.1                       CONSTRUCTION DETAILS                          9/22/97
A5.2                       FIRE RESISTIVE CONSTRUCTION DETAILS           9/22/97
A6.1                       DOOR SCHEDULE/INTERIOR DETAILS                9/22/97
A7.1                       INTERIOR ELEVATIONS                           9/22/97
A7.2                       INTERIOR ELEVATIONS                           9/22/97
A9.1                       REFLECTED CEILING PLANS                       9/22/97
</TABLE>

                                    Exhibit F
                                  (Page 1 of 2)

<PAGE>

                                    EXHIBIT F

                               BASE BUILDING PLANS

<TABLE>
<CAPTION>
                                                                     Page 2 of 2
<S>                        <C>                                       <C>
STRUCTURAL
----------
S1                         TITLE SHEET                                  2/6/98
S2.1                       FOUNDATIONS PLAN                             2/6/98
S2.2                       LEVEL TWO FRAMING PLAN                       2/6/98
S2.3                       LEVEL THREE FRAMING PLAN                     2/6/98
S2.4                       ROOF FRAMING PLAN                            2/6/98
S3.1                       SECTIONS AND DETAILS                         2/6/98
S3.2                       SECTIONS AND DETAILS                         2/6/98
S3.3                       SECTIONS AND DETAILS                         2/6/98
S3.4                       STAIR PLANS AND SECTIONS                     2/6/98

MECHANICAL
----------
Ml.l                       LEGEND AND SYMBOLS                          9/22/97
M2.1                       FIRST FLOOR PLAN - MECHANICAL               9/22/97
M2.2.                      SECOND FLOOR PLAN - MECHANICAL              9/22/97
M2.3                       THIRD FLOOR PLAN - MECHANICAL               9/22/97
M3.1                       ENLARGED MECHANICAL PLANS - FIRST LEVEL     9/22/97
M3.2                       ENLARGED MECHANICAL PLANS - SECOND LEVEL    9/22/97
M3.3                       ENLARGED MECHANICAL PLANS - THIRD LEVEL     9/22/97
M4.1                       SECTIONS                                    9/22/97
M5.1                       CONTROLS - DIAGRAMS                         9/22/97
M6.1                       SCHEDULES                                   9/22/97
M7.1                       DETAILS                                     9/22/97
P2.1                       LEVEL ONE FLOOR PLAN PLUMBING PLANS         5/22/97
P2.2                       LEVEL TWO FLOOR PLAN PLUMBING PLANS         5/22/97
P2.3                       LEVEL THREE FLOOR PLAN PLUMBING PLAN        5/22/97
P3.1                       ENLARGED PLUMBING PLANS/WATER PIPING        5/22/97
P3.2                       ENLARGED PLUMBING PLANS/WATER PIPING        5/22/97
P4.1                       WASTE AND VENT SCHEMATICS                   5/22/97

ELECTRICAL
----------
E1.1                       ELECTRICAL SITE PLAN                        6/26/97
E2.1                       FIRST FLOOR ELECTRICAL PLAN                 5/21/97
E2.2                       SECOND FLOOR ELECTRICAL PLAN                5/21/97
E2.3                       THIRD FLOOR ELECTRICAL PLAN                 5/21/97
E2.4                       FIRST FLOOR LIGHTING PLAN                   10/9/97
E2.5                       SECOND AND THIRD FLOOR LIGHTING PLAN        10/9/97
E2.6                       FIRST FLOOR POWER PLAN                      10/9/97
E2.7                       SECOND AND THIRD FLOOR POWER PLANS          10/9/97
E4.1                       ELECTRICAL SINGLE-LINE DIAGRAM              5/21/97
E4.2                       ELECTRICAL SINGLE-LINE DIAGRAM              5/21/97
E4.3                       ELECTRICAL SYMBOLS & RISER DIAGRAMS         5/21/97
E5.1                       ELECTRICAL SCHEDULES                        5/21/97
</TABLE>

                                    Exhibit F
                                  (Page 2 of 2)

<PAGE>

JDA SOFTWARE
Revised - August 14, 1998

<TABLE>
<CAPTION>
                                                    INITIAL                      REVISED                     PROJECT
                                                  REQUIREMENT                  REQUIREMENT                    TOTALS
                                                  95,000 RSF                   11 5,000 RSF                 136,000 RSF
                                                  -----------                  ------------                 -----------
<S>                                               <C>            <C>           <C>            <C>           <C>
                                                       95,000                       115,000                     136,000
                                                        69.85%                        84.56%                        100%
LAND                    435,600 SF @ $9.50                       New Factor                   Total Factor
                        $4,138,200 X 74.85%*      $ 3,097,564         x87.12*  $  3,605,192          x100%  $ 4,138,200
BUILDING
Shell Design            98,835 GSF @ $ 3.00       $   296,504    119,642 GSF   $    358,926   141,490 GSF   $   424,470
Shell Building          98,835 GSF @ $46.18         4,564,185    119,642 GSF      5,525,068   141,490 GSF     6,534,008
Tenant Improvements     90,000 USF @ $30.00         2,700,000    108,947 USF      3,268.410   128,842 USF     3,865,260
                                                  -----------                  ------------                 -----------

TOTAL BUILDING COSTS                              $ 7,560,689                  $  9,152,404                 $10,823,738

DEVELOPMENT COSTS
Survey                                            $     3,493                  $      4,228                 $     5,000
Soil & Environmental                                    6,985                         8,456                      10,000
Real Estate Taxes                                      46,463                        54,078                      62,073
Legal Expenses                                         52,390                        63,419                      75,000
Advertising & Marketing                                     0                             0                           0
Development Fee @ 3%                              $   366,406                       443,666                     524,538
                                                  -----------                  ------------                 -----------

TOTAL DEVELOPMENT COSTS                           $   475,737                  $    573,847                 $   676,711

FINANCING COSTS

Land Carry - 11 Mos. @ 8%                         $   227,155                  $    264,381                 $   303,468
Construction Loan - 10.5 Mos. @ 8%                    295,310                       357,406                     422,604
Financing Charge @ 1/2%                                61,068                        73,924                      87,423
                                                  -----------                  ------------                 -----------

TOTAL FINANCING COSTS                             $   583,532                  $    695,711                 $   813,495

COMMISSIONS  95,000 RSF @ 4% (1-5) & 2% (6-10)    $   400,995                       485,415                 $   574,056

DEVELOPMENT CONTINGENCY                           $    95,000                       272,217                     458,515
                                                  -----------                  ------------                 -----------

TOTAL PROJECT COSTS     95,000 SF @ $128.56       $12,213,517                  $ 14,784,785                 $17,484,616

RATE RETURN @ 10.42%                              x     10.42%                 x      10.42%                x     10.42%
                                                  -----------                  ------------                 -----------
ANNUAL NET RENT                                   $ 1,272,649                  $  1,540,575                 $ 1,821,897

NET RENT BASED ON 95,000 RSF                      $     13.40    115,000 RSF   $      13.40   136,000 RSF   $     13.40
</TABLE>

* Landlord to apply a two point five six percent (2.56%) adjustment to the JDA
land allocation to justify risk associated with Tenant's future expansion
requirement and corresponding speculative space. Factor was reduced from 5% to
2.56% to correspond with the reduction in the remaining speculative space.

<PAGE>

                        SECOND AMENDMENT TO OFFICE LEASE
                              SCOTTSDALE NORTHSIGHT

         This Second Amendment to Office Lease (the "Amendment") dated as of the
23 day of November, 1998, by and between OPUS WEST CORPORATION, a Minnesota
corporation ("Lessor") and JDA SOFTWARE GROUP, INC., a Delaware corporation
("Lessee").

                                         RECITALS

         1.       By that Lease dated as of April 30, 1998 (the "Lease") by and
between Lessor and Lessee, the parties agreed to lease approximately 95,000
rentable square feet (the "Premises"), within that Office Complex to be
constructed by Lessor, west and contiguous to 87th Street and South of Raintree
Drive in Scottsdale, Arizona;

         2.       By that First Amendment to Office Lease dated June 30, 1998
(herein, the "First Amendment" ), Lessor and Lessee amended the Lease to provide
that the Premises shall be comprised of the entire second (2nd) and third (3rd)
floor of the Building, plus (approximately) 20,000 rentable square feet located
in the first floor of the Building. Said First Amendment constituted Lessee's
election under Article XXI of the Lease, to increase the size of the Premises by
notice to Lessor given prior to the issuance of the Permit Date (as defined
therein) to an area not to exceed 115,000 rentable square feet.

         3.       By this Amendment, Lessee and Lessor intend to increase again,
the size of the Premises, such that the total area shall be 121,141 rentable
square feet of space.

         THEREFORE, for valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties agree as follows:

         A.       Notwithstanding any provision in the Lease to the contrary,
the parties agree that the Premises shall be comprised of the entire second
(2nd) and third (3rd) floor of the Building, plus that portion of the first
floor, such that the total area of the Premises shall be (approximately) 121,141
rentable square feet. Exhibit A-l attached to this Amendment sets forth the
conceptual depiction and location of the Premises as expanded hereby. Such
adjustment in the rentable area of the Premises shall be effective for all
purposes referenced in the Lease, including, without limitation, in the
determination of the Lessee's Pro Rata Share of Real Estate Taxes and Operating
Expenses, the Tenant Improvement Allowance (although said amount shall continue
to be computed based upon usable square feet), the allocation of parking rights
pursuant to Article XLIII (i.e. at the rate of six (6) spaces per 1,000 rentable
square feet), and for other purposes set forth in the Lease. Notwithstanding the
foregoing, the commencement date memorandum to be executed by the parties
pursuant to Article XXVIII of the Lease shall control as to the exact amount of
rentable and usable area for the Premises.

         B.       Exhibit E, TOTAL PROJECT COSTS, attached to the Lease, is
hereby replaced with Exhibit E, attached hereto.

         C.       Except as specifically modified or amended hereby, the parties
confirm and ratify the Lease, as amended by the First Amendment and this
Amendment, as enforceable and binding in accordance with its terms and
provisions. All capitalized terms not otherwise defined herein shall have the
meanings provided in the Lease.

                            [SIGNATURES ON NEXT PAGE]

<PAGE>

         IN WITNESS WHEREOF, the undersigned parties have executed this
Amendment to be effective as of the date first written above.

LESSOR:                                      LESSEE:

OPUS WEST CORPORATION, a                     JDA SOFTWARE GROUP, INC., a
Minnesota corporation                        Delaware corporation

By /s/ Thomas W. Roberts                     By /s/ KRISTEN L MAGNUSON
  ----------------------                       -----------------------------
   Thomas W. Roberts                           Name KRISTEN L MAGNUSON
      Its President                            Print________________________
                                               Its: CHIEF FINANCIAL OFFICER

<PAGE>

[THIRD FLOOR PLAN]

                                  EXHIBIT A-1

                                  PAGE 1 of 3

<PAGE>

[SECOND FLOOR PLAN]

                                  EXHIBIT A-1

                                  PAGE 2 of 3

<PAGE>

[FIRST FLOOR PLAN]

                                  EXHIBIT A-1

                                  PAGE 3 of 3
<PAGE>

                              REVISED AND RESTATED
                       THIRD AMENDMENT TO LEASE AGREEMENT

                  This Revised and Restated Third Amendment to Lease Agreement
(the "Amendment") is dated to be effective as of this 20th day of October, 1999,
by and between JDA SOFTWARE GROUP, INC., a Delaware corporation ("Lessee") and
OPUS WEST CORPORATION, a Minnesota corporation ("Lessor").

                                    RECITALS

                  A.       WHEREAS, Lessee and Lessor entered into that Lease
Agreement dated April 30, 1998, as amended by that First Amendment to Office
Lease dated June 30, 1998, and that Second Amendment to Office Lease dated
November 23, 1998 (collectively, said Lease Agreement and the amendments thereto
are referred to as the "Lease"), all in regard to the leasing by Lessee from
Lessor of certain premises at that project known as Scottsdale Northsight,
located west and contiguous to 87th Street, and south of Raintree Drive in
Scottsdale, Arizona; and

                  B.       WHEREAS, said Lease allows the Lessee to make certain
improvements and alterations, but only to its Premises, and notwithstanding, the
Lessee has installed certain cables and conduits in portions of the Building
which are outside the Premises; and

                  C.       WHEREAS, Lessor is willing to allow said improvements
to remain in their existing location, but only subject to the provisions of this
Amendment;

                  D.       WHEREAS, the parties entered into that Third
Amendment to Lease Agreement, dated October 8, 1999, and intend, by the
execution of this Amendment to supercede and replace, in its entirety said Third
Amendment with this Amendment;

                  THEREFORE, for valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties agree as follows:

                  1.       Notwithstanding anything in the Lease to the
contrary, the existing cables, wires and conduits installed by the Lessee in
portions outside the Premises at the Building (the "Cables") shall be allowed to
remain in their present, existing locations, and in this regard, the Lessor
grants its consent to the placement of such cables.

                  2.       Lessee agrees that Lessor, and its contractors,
affiliates, employees and agents (collectively, the "Lessor Parties") shall have
no responsibility or liability in regard to the repair, maintenance or
replacement of said Cables, however, Lessor agrees that the Lessor Parties shall
not intentionally nor willfully damage or interfere with the Cables, and Lessor
shall not intentionally permit any other tenant at the Building to damage or
interfere with the Cables.

                  3.       Further, Lessor and any occupant (including tenants)
of portions of the Building in which the cables, wires and conduits are placed
shall have a right superior to that of Lessee in regard to possession and access
to the areas of the Building in which said cables, wires and conduits are
located. Lessee must first obtain the consent of any such occupant, in addition

<PAGE>

to the consent of the Lessor (which consent shall not be unreasonably withheld),
prior to entering into such portions of the Building in which the Cables exist,
for the purpose of repair, maintenance, replacement thereof, or any other
purpose. Lessor agrees to cooperate with Lessee in obtaining the consent of such
occupant, and to exercise any rights reserved by Lessor under the lease with any
such occupant, in order to provide access to such areas for Lessee's benefit.

                  4.       Except as expressly consented to by Lessor herein,
Lessee agrees to adhere to the provisions of the Lease, and to not place any
cables, wires or conduits or any other improvements outside of the Premises
without the express prior written consent of the Lessor, which consent shall not
be unreasonably withheld.

                  5.       The provisions of Article I. Base Rent of the Lease,
which provide for an adjustment to the Base Rent in the event the Total Project
Costs actually incurred vary from the Total Project Costs pursuant to the
project budget are hereby irrevocably waived by the parties. Accordingly, there
shall be no adjustment in the Base Rent and the parties confirm and agree that
the Base Rent will be the product of $13.40 or $15.41 (as the case may be, and
for the applicable periods, as provided in Article I. Base Rent) times the
rentable square feet of the Premises.

                  6.       Except as expressly modified hereby, the parties
hereby confirm and ratify the provisions of the Lease, as being enforceable and
binding in accordance with its terms. Any capitalized terms used herein and not
otherwise defined shall have the meanings provided in the Lease.

                  IN WITNESS WHEREOF, the undersigned parties have executed this
Amendment to be effective as of the date first written above.

                                        JDA SOFTWARE GROUP, INC.,
                                        a Delaware corporation

                                        By: /s/ Lindsay L. Hoopes
                                            ------------------------------------
                                        Its: VICE PRESIDENT

                                        OPUS WEST CORPORATION,
                                        a Minnesota corporation

                                        BY: /s/ Thomas W. Roberts
                                            ------------------------------------
                                        Its: THOMAS W. ROBERTS
                                             PRESIDENT

<PAGE>

05/01/01
05/07/01
05/15/01
05/22/01

                        FOURTH AMENDMENT TO OFFICE LEASE
                             SCOTTSDALE NORTHSIGHT

                  THIS FOURTH AMENDMENT TO OFFICE LEASE (the "Fourth Amendment")
is made and entered into as of the 30 day of May, 2001, by and between OPUS REAL
ESTATE ARIZONA II, L.L.C., a Delaware limited liability company ("Lessor"), and
JDA SOFTWARE GROUP, INC., a Delaware corporation ("Lessee").

                  WHEREAS, Opus West Corporation, a Minnesota corporation,
predecessor in interest to Lessor, and Lessee entered into that certain Office
Lease dated April 30, 1998, as amended by that certain First Amendment to Office
Lease dated June 30, 1998, that certain Second Amendment to Office Lease dated
November 23, 1998, that certain Third Amendment to Lease Agreement dated October
8, 1999, and that certain Revised and Restated Third Amendment to Lease
Agreement dated October 20, 1999 (as amended, the "Lease"), all in regard to the
leasing by Lessee from Lessor of certain premises at that certain project known
as Scottsdale Northsight, located west of and contiguous to 87th Street, and
south of Raintree Drive, in Scottsdale, Arizona; and

                  WHEREAS, the parties desire to modify the Lease as hereinafter
set forth in this Fourth Amendment.

                  NOW, THEREFORE, in consideration of the premises herein
contained and other good and valuable consideration, the receipt and adequacy of
which are hereby acknowledged, the parties hereto agree as follows:

                  1.       The terms and provisions of this Fourth Amendment
shall be effective on the date of this Fourth Amendment. All capitalized terms
used in this Fourth Amendment, unless otherwise defined herein, shall have the
same meanings given to them in the Lease.

                  2.       The second sentence of Article X of the Lease is
hereby deleted in its entirety and the following sentence is hereby substituted
in its place:

                  Notwithstanding the foregoing, a sublease or
                  assignment to a subsidiary of Lessee, or a
                  sale of all or substantially all of Lessee's
                  assets or an arrangement resulting from a
                  merger or reorganization in which the
                  purchasing or surviving entity, as the case
                  may be, has a "Tangible Net Worth" (defined
                  in Article VI) of not less than Lessee's
                  immediately prior to the purchase, merger or
                  reorganization, shall not require the consent
                  of Lessor.

                  3.       Except as otherwise expressly modified in this Fourth
Amendment, the terms and provisions of the Lease are and shall remain in full
force and effect. In the event of

<PAGE>

any conflict or inconsistency between the terms and provisions of the Lease and
the terms and provisions of this Fourth Amendment, the terms and provisions of
this Fourth Amendment shall govern and control.

                  4.       This Fourth Amendment may be executed in any number
of counterparts, all of which together shall be deemed to constitute one
instrument, and each of which shall be deemed an original.

                  IN WITNESS WHEREOF, the parties have executed this Fourth
Amendment to Office Lease as of the day and year first above written.

Lessor:                                          Lessee:

OPUS REAL ESTATE ARIZONA II, L.L.C., a           JDA SOFTWARE GROUP, INC., a
Delaware limited liability company               Delaware corporation

By /s/ Wade Lau                                  By /s/ Kristen L. Magnuson
   -----------------------------------------        ----------------------------
Name: WADE LAU                                   Name: _________________________
Title: VICE PRESIDENT                            Title:_________________________

                                        2

<PAGE>

05/22/01
05/23/01

                         FIFTH AMENDMENT TO OFFICE LEASE
                             SCOTTSDALE NORTHSIGHT

                  THIS FIFTH AMENDMENT TO OFFICE LEASE (the "Fifth Amendment")
is made and entered into as of the 31 day of May, 2001, by and between OPUS REAL
ESTATE ARIZONA II, L.L.C., a Delaware limited liability company ("Lessor"), and
JDA SOFTWARE GROUP, INC., a Delaware corporation ("Lessee").

                  WHEREAS, Opus West Corporation, a Minnesota corporation,
predecessor in interest to Lessor, and Lessee entered into that certain Office
Lease dated April 30, 1998, as amended by that certain First Amendment to Office
Lease dated June 30, 1998, that certain Second Amendment to Office Lease dated
November 23, 1998, that certain Third Amendment to Lease Agreement dated October
8, 1999, that certain Revised and Restated Third Amendment to Lease Agreement
dated October 20, 1999, and Lessor and Lessee entered into that certain Fourth
Amendment to Office Lease dated May 30, 2001 (as amended, the "Lease"), all in
regard to the leasing by Lessee from Lessor of certain premises at that certain
project known as Scottsdale Northsight, located west of and contiguous to 87th
Street, and south of Raintree Drive, in Scottsdale, Arizona; and

                  WHEREAS, pursuant to Article XXIX of the Lease ("Future
Development"), Lessor and Lessee acknowledge that (i) the Office Complex as
initially constructed is the first phase of a proposed two-phase integrated
commercial real estate development, and (ii) as an accommodation to Lessee and
the developer of that parcel, Lessor shall cooperate with Lessee and such
developer in the construction of said second phase development on the terms set
forth herein.

                  NOW, THEREFORE, in consideration of the premises herein
contained and other good and valuable consideration, the receipt and adequacy of
which are hereby acknowledged, the parties hereto agree as follows:

                  1.       The terms and provisions of this Fifth Amendment
shall be effective on the date of this Fifth Amendment. All capitalized terms
used in this Fifth Amendment, unless otherwise defined herein, shall have the
same meanings given to them in the Lease.

                  2.       The parties acknowledge that Opus West Corporation, a
Minnesota corporation, or its designee (collectively, "Developer"), may, but has
no obligation to, commence construction of a parking structure (the "Parking
Structure") that will serve the Office Complex on an approximate 5-acre parcel
that is north of and adjacent to the Property (the "Adjacent Parcel"). Such
Parking Structure will (i) consist of two parking levels, (ii) be located
entirely on the Adjacent Parcel, and (iii) be set back a minimum of seventy (70)
feet from 87th Street.

                  3.       Lessor intends to permit Developer to stage its
construction activities in connection with the construction of such Parking
Structure on the Property. Lessor will provide Lessee with notice that Lessor
has given such permission to Developer prior to the

<PAGE>

commencement of any such staging activities by Developer. Lessee acknowledges
that such staging activities may create a disruption to Lessee's access to
parking within the Office Complex and utilization of the Premises. During such
construction, Lessor will cause Developer to take commercially reasonable steps
to minimize the disruption to Lessee's access to parking on the Property and
utilization of the Premises; provided, however, that in no event will Lessor
permit Developer to prohibit access to the parking areas serving the Property.
Lessor will also not permit Developer to occupy parking spaces on the Property
without first (i) obtaining Lessee's consent as to the location and
configuration of the parking spaces to be occupied by the Developer, which
consent shall not be unreasonably withheld, and (ii) if the parking spaces so
occupied are covered parking spaces, providing for substitute covered parking
spaces on the Property for the duration of the time Developer occupies such
assigned covered parking spaces.

                  4.       If Developer elects to construct the Parking
Structure, then at such time as construction of the Parking Structure is
completed, Lessor and Developer intend to swap the Adjacent Parcel for a portion
of the Property (the "Exchange") so that Developer can construct an additional
office building thereon (such portion of the Property is referred to herein as
"Phase II"). At such time as Lessor obtains title to the Adjacent Parcel and
Developer obtains title to Phase II (the "Exchange Date"), the site plan
attached to the Lease as Exhibit A will be deemed deleted and replaced with the
site plan attached hereto as Exhibit A. From and after the Exchange Date, Lessee
acknowledges and agrees that (i) the phrase "Property" in the Lease will
thereafter refer to the Adjacent Parcel and all of the original Property less
Phase II, and (ii) the phrase "Office Complex" in the Lease will thereafter
refer to the "Property", as amended, and all buildings and improvements and
personal property of Lessor used in connection with the operation or maintenance
thereof located therein and thereon and the appurtenant parking facilities,
including the Parking Structure.

                  5.       At such time as Lessor obtains title to the Adjacent
Parcel, Lessor shall give Lessee written notice thereof and the parties agree
that Lessor will relocate all of Lessee's parking from the existing surface
parking location on the Property to the Parking Structure, which spaces will be
located generally within the area depicted on Exhibit B attached hereto.

                  6.       As described above, the parties acknowledge that
Developer may commence construction of an office building and related
improvements ("Phase II Office Building") on Phase II; provided, however, that
Lessor will not permit Developer to construct such Phase II Office Building
until such time as Developer has completed construction of the Parking Structure
and the Exchange has been completed.

                  7.       The parties acknowledge that this Fifth Amendment has
been executed by Lessor and Lessee in anticipation of (i) Developer acquiring
title to the Adjacent Parcel, (ii) Developer constructing the Parking Structure
thereon, (iii) Developer and Lessor entering into an agreement to swap the
Adjacent Parcel for a portion of the Property, and (iv) Developer constructing
the Phase II Office Building on Phase II. As a result, the parties agree that
the provisions of this Fifth Amendment shall be contingent upon (i) Developer
acquiring title to the Adjacent Parcel on or before December 31, 2001, and (ii)
Developer and Lessor entering into an agreement to swap the Adjacent Parcel for
a portion of the Property on or before December 31, 2001. In the event either of
these conditions are not timely satisfied, then in that event the terms and
provisions of this Fifth Amendment shall automatically and without further
action of the parties be null, void and of no further force or effect.

                                       2

<PAGE>

                  8.       Except as otherwise expressly modified in this Fifth
Amendment, the terms and provisions of the Lease are and shall remain in full
force and effect. In the event of any conflict or inconsistency between the
terms and provisions of the Lease and the terms and provisions of this Fifth
Amendment, the terms and provisions of this Fifth Amendment shall govern and
control.

                  9.       This Fifth Amendment may be executed in any number of
counterparts, all of which together shall be deemed to constitute one
instrument, and each of which shall be deemed an original.

                        [SIGNATURES APPEAR ON NEXT PAGE]

                                       3

<PAGE>

                  IN WITNESS WHEREOF, the parties have executed this Fifth
Amendment to Office Lease as of the day and year first above written.

Lessor:                                            Lessee:

OPUS REAL ESTATE ARIZONA II, L.L.C.,               JDA SOFTWARE GROUP, INC., a
a Delaware limited liability company               Delaware corporation

By /s/ Wade Lau                                    By /s/ Kristen L. Magnuson
   -----------------------------------------          --------------------------
Name: WADE LAU                                     Name: Kristen L. Magnuson
Title: VICE PRESIDENT                              Title: EXEC. VP/CFO

                                       4
<PAGE>

                                    EXHIBIT A

                                    SITE PLAN

                             [CONCEPTUAL SITE PLAN]

                                    Exhibit A

                                  (Page 1 of 1)

<PAGE>

                                    EXHIBIT B

                           PARKING STRUCTURE SITE PLAN

                               [PARKING EXHIBIT]

                                    Exhibit B

                                  (Page 1 of 1)

<PAGE>

                         SIXTH AMENDMENT TO OFFICE LEASE
                             SCOTTSDALE NORTHSIGHT

                  THIS SIXTH AMENDMENT TO OFFICE LEASE (the "Sixth Amendment")
is made and entered into as of the ________________ day of August, 2001, by and
between OPUS REAL ESTATE ARIZONA II, L.L.C., a Delaware limited liability
company ("Lessor"), and JDA SOFTWARE GROUP, INC., a Delaware corporation
("Lessee").

                  WHEREAS, Opus West Corporation, a Minnesota corporation,
predecessor in interest to Lessor, and Lessee entered into that certain Office
Lease dated April 30, 1998, as amended by that certain First Amendment to Office
Lease dated June 30, 1998, that certain Second Amendment to Office Lease dated
November 23, 1998, that certain Third Amendment to Lease Agreement dated October
8, 1999, that certain Revised and Restated Third Amendment to Lease Agreement
dated October 20, 1999, that certain Fourth Amendment to Office Lease dated May
30, 2001, and that certain Fifth Amendment to Office Lease (the "Fifth
Amendment") dated May 31, 2001 (as amended, the "Lease"), all in regard to the
leasing by Lessee from Lessor of certain premises at that certain project known
as Scottsdale Northsight, located west of and contiguous to 87th Street, and
south of Raintree Drive, in Scottsdale, Arizona; and

                  WHEREAS, the parties desire to modify the Lease as hereinafter
set forth.

                  NOW, THEREFORE, in consideration of the premises herein
contained and other good and valuable consideration, the receipt and adequacy of
which are hereby acknowledged, the parties hereto agree as follows:

         1.       The terms and provisions of this Sixth Amendment shall be
effective on the date of this Sixth Amendment. All capitalized terms used in
this Sixth Amendment, unless otherwise defined herein, shall have the same
meanings given to them in the Lease.

         2.       Lessor or Developer (as defined in the Fifth Amendment), may,
but have no obligation to, construct the proposed Phase II Office Building (as
defined in the Fifth Amendment).

         3.       The Phase II Office Building, if and when constructed, may
consist of a two- or three-story office building in generally the configuration
shown on Exhibit "A" attached hereto and incorporated herein.

         4.       The Parking Structure, if and when constructed by Lessor or
Developer and acquired by Lessor, will contain not less than 426 parking spaces,
of which at least 200 will be covered.

         5.       Article XLIII grants Tenant the right to six (6) parking
spaces per one thousand (1,000) rentable square feet of the Premises. The Second
Amendment to Office Lease dated November 23, 1998 indicates that, for purposes
of Article XLIII, the Premises consists of 121,141 rentable square feet. Tenant
is currently entitled to 726 parking spaces of which 298 are covered parking
spaces. If Developer and Lessor consummate the "Exchange", as described in

<PAGE>

the Fifth Amendment, Article XLIII of the Lease is automatically amended as of
the Exchange Date to:

                  (a)      reduce the number of parking spaces the Lessor is
         obligated to construct on the Property and provide to Lessee from 6 per
         1,000 rentable square feet in the Premises to 5.5 per 1,000 rentable
         square feet in the Premises; and

                  (b)      the number of the parking spaces Lessor is obligated
         to provide to Lessee which must be covered parking spaces remains 298
         and may be increased to 328 pursuant to Section 6 below.

If Lessee rents additional space from Lessor pursuant to Article XXX of the
Lease, Lessor must provide Lessee 5.5 parking spaces per 1,000 rentable square
feet in the additional space and approximately thirty-five percent (35%) of such
parking spaces must be covered parking spaces.

         6.       Section 5 of the Fifth Amendment is hereby deleted in its
entirety and replaced with the following:

                  5.       Prior to commencement of construction of the Phase II
                  Building, Lessor shall give Lessee written notice thereof and
                  Lessee's parking spaces will automatically be relocated from
                  the surface parking lot located on the Property to a surface
                  parking lot Developer or Lessor will construct on Phase II
                  prior to the Exchange and to the Parking Structure. Lessor
                  must relocate at least 200 of Lessee's covered parking spaces
                  to covered parking spaces in the Parking Structure. The 200
                  covered parking spaces in the Parking Structure must be
                  located in the easternmost portions of the Parking Structure.
                  Lessor may relocate the remaining 98 covered spaces Lessor is
                  obligated to provide to Lessee either to covered spaces in the
                  Parking Structure or to covered spaces on the surface parking
                  lot to be constructed on Phase II. If Lessor does not relocate
                  all 298 of the covered parking spaces Lessor is obligated to
                  provide to Lessee to covered spaces in the Parking Structure,
                  Lessor must, at no cost to Lessee, increase the number of
                  covered parking spaces Lessor provides to Lessee from 298 to
                  328. If Lessor is obligated to increase the number of covered
                  parking spaces Lessor provides to Lessee from 298 to 328,
                  Lessor is not obligated to increase the number of total
                  parking spaces Lessor provides to Lessee, so Lessee will have
                  30 fewer uncovered parking spaces.

         7.       Except as otherwise expressly modified in this Sixth
Amendment, the terms and provisions of the Lease are and shall remain in full
force and effect. In the event of any conflict or inconsistency between the
terms and provisions of the Lease and the terms and provisions of this Sixth
Amendment, the terms and provisions of this Sixth Amendment shall govern and
control.

                                        2

<PAGE>

         8.       This Sixth Amendment may be executed in any number of
counterparts, all of which together shall be deemed to constitute one
instrument, and each of which shall be deemed an original.

                  IN WITNESS WHEREOF, the parties have executed this Sixth
Amendment to Office Lease as of the day and year first above written.

Lessor:                                    Lessee:

OPUS REAL ESTATE ARIZONA II,               JDA SOFTWARE GROUP, INC., a
L.L.C., a Delaware limited liability       Delaware corporation
company

By /s/ Wade Lay                            By /s/ Kristen L. Magnuson
   ------------------                         ----------------------------
Name: WADE LAY                             Name: KRISTEN L. MAGNUSON
Title: VICE PRESIDENT                      Title: EXECUTIVE VICE PRESIDENT

                                       3

<PAGE>

                             [CONCEPTUAL SITE PLAN]

                                    EXHIBIT A

<PAGE>

                        SEVENTH AMENDMENT TO OFFICE LEASE
                              SCOTTSDALE NORTHSIGHT

                  THIS SEVENTH AMENDMENT TO OFFICE LEASE (the "Seventh
Amendment") is made and entered into as of the 30th day of June, 2003, by and
between OPUS REAL ESTATE ARIZONA II, L.L.C., a Delaware limited liability
company ("Lessor"), and IDA SOFTWARE GROUP, INC., a Delaware corporation
("Lessee").

                  WHEREAS, Opus West Corporation, a Minnesota corporation,
predecessor in interest to Lessor, and Lessee entered into that certain Office
Lease dated April 30, 1998, as amended by that certain First Amendment to Office
Lease dated June 30, 1998, that certain Second Amendment to Office Lease dated
November 23, 1998, that certain Third Amendment to Lease Agreement dated October
8, 1999, that certain Revised and Restated Third Amendment to Lease Agreement
dated October 20, 1999, that certain Fourth Amendment to Office Lease dated May
30, 2001, that certain Fifth Amendment to Office Lease (the "Fifth Amendment")
dated May 31, 2001, and that certain Sixth Amendment to Office Lease dated as of
August 31, 2001 (the "Sixth Amendment") (as amended, the "Lease"), all in regard
to the leasing by Lessee from Lessor of certain premises at that certain project
known as Scottsdale Northsight, located west of and contiguous to 87th Street,
and south of Raintree Drive, in Scottsdale, Arizona; and

                  WHEREAS, the parties desire to modify the Lease as hereinafter
set forth.

                  NOW, THEREFORE, in consideration of the premises herein
contained and other good and valuable consideration, the receipt and adequacy of
which are hereby acknowledged, the parties hereto agree as follows:

         1.       The terms and provisions of this Seventh Amendment shall be
effective on the date of this Seventh Amendment. All capitalized terms used in
this Seventh Amendment, unless otherwise defined herein, shall have the same
meanings given to them in the Lease.

         2.       The second reference to "December 31, 2001" within Section 7
of the Fifth Amendment is hereby deleted and the phrase "August 31, 2003" is
substituted in its place. Accordingly, notwithstanding anything to the contrary
contained in the Fifth Amendment or elsewhere in the Lease, the terms and
provisions of the Fifth Amendment shall not be deemed null, void and of no force
or effect pursuant to the provisions of Section 7 of the Fifth Amendment unless
and until Developer and Lessor fail to enter into an agreement to swap the
Adjacent Parcel for a portion of the Property on or before August 31, 2003.

         3.       Notwithstanding anything to the contrary contained in the
Lease, the initial term of the Lease is hereby extended through, and shall
expire on, December 31, 2014, which extension period is inclusive of the First
Renewal Term, as defined in Article XXXI of the Lease. From and after the date
of this Seventh Amendment, Article XXXI of the Lease is hereby deleted from the
Lease in its entirety; provided, however, that Lessee shall be deemed to have
exercised its option to extend the term of the Lease for the First Renewal Term
for purposes of Article XXXII of the Lease.

<PAGE>

         4.       Lessee hereby waives Lessee's early termination rights under
Article XXXVIII of the Lease. From and after the date of this Seventh Amendment,
the terms and provisions of Article XXXVIII of the Lease shall be null, void and
of no further force and effect.

         5.       The parties hereby acknowledge and agree that Lessee timely
notified Lessor of Lessee's election to exercise Lessee's Offer Right pursuant
to Article XXX of the Lease. Lessor hereby agrees to make the remaining portions
of the rentable areas of the Building (the "Additional Space"), which consist of
approximately 15,942 rentable square feet in the aggregate, available for lease
by Lessee, and Lessee hereby agrees to lease the Additional Space from Lessor,
commencing on the date that is sixty (60) days after Lessor delivers possession
of the Additional Space to Lessee for Lessee's installation of any tenant
improvements therein in accordance with Section 8 of this Seventh Amendment (the
"Additional Space Commencement Date") and continuing thereafter throughout the
remainder of the term of the Lease. Tenant's lease of the Additional Space will
in all events be coterminous with Tenant's lease of the remainder of the
Premises, as may be extended under the Lease.

         6.       Commencing on the Additional Space Commencement Date and
continuing thereafter throughout the remainder of the initial term of the Lease
(as extended pursuant to Section 3 of this Seventh Amendment), (i) the Premises
shall be deemed to consist of the existing Premises and the Additional Space, or
137,083 rentable square feet of space, for all purposes under the Lease,
including, without limitation, for purposes of calculating Lessee's Pro Rata
Share of Real Estate Taxes and Operating Expenses (which pro rata share will be
equal to 100% of Real Estate Taxes and Operating Expenses for the Building), and
(ii) Lessee will pay Base Rent (based upon a Premises consisting of 137,083
rentable square feet of space) in accordance with the following schedule:

<TABLE>
<CAPTION>
Applicable Portion                    Annual Rental Rate Per
     of Term                          Rentable Square Foot
------------------                    ----------------------
<S>                                   <C>
Additional Space Commencement                $14.50
Date-12/31/09

01/01/10-12/31/14                            $16.25
</TABLE>

Prior to the Additional Space Commencement Date, the Premises shall be deemed to
consist of the existing Premises only, or 121,141 rentable square feet of space,
for all purposes under the Lease, including, without limitation, for purposes of
calculating Lessee's Pro Rata Share of Real Estate Taxes and Operating Expenses.
In the event the Additional Space Commencement Date occurs prior to January 1,
2005, then in that event Lessee will pay Base Rent (based upon a Premises
consisting of 121,141 rentable square feet of space) in accordance with Article
I of the Lease through the Additional Space Commencement Date and thereafter
Lessee will pay Base Rent in accordance with subsection (ii) of the second
preceding sentence. In the event the Additional Space Commencement Date occurs
after January 1, 2005, then in that event Lessee will pay Base Rent (based upon
a Premises consisting of 121,141 rentable square feet of space) in accordance
with Article I of the Lease through December 31, 2004, Lessee will pay Base Rent
(based upon a Premises consisting of 121,141 rentable square feet of space)
based upon an annual rental rate of $14.50 per rentable square foot of the
Premises commencing on January 1,

                                       2

<PAGE>

2005 through the Additional Space Commencement Date and thereafter Lessee will
pay Base Rent in accordance with subsection (ii) of the third preceding
sentence.

         7.       Promptly following the expiration of the existing third party
leases for portions of the Additional Space and the applicable third party's
vacation thereof, Lessor agrees to deliver such portions of the Additional Space
to Lessee for Lessee's installation of any tenant improvements therein, which
tenant improvements, if any, will in all events be considered "Work" for
purposes of Article VIII of the Lease. Notwithstanding anything to the contrary
contained in the Lease, Lessor shall have no obligation to construct, or pay any
portion of the cost of, any tenant improvements installed in the Additional
Space or any portion of the existing Premises in connection with any build out
of the Additional Space by Lessee. Lessor hereby agrees to use commercially
reasonable efforts to cause those certain third party tenants occupying the
Additional Space as of the date of this Seventh Amendment to vacate such
tenants' respective spaces promptly following the expiration of such tenants'
leases for such spaces. Lessor further agrees that Lessor will not consent to
any holdovers by any such tenants in such spaces after the expiration of the
respective leases.

         8.       Pursuant to Section 5 of the Sixth Amendment, from and after
the Additional Space Commencement Date, in addition to those parking spaces
provided to Lessee based upon a Premises consisting of the existing Premises
only, Lessor will provide to Lessee 5.5 parking spaces per 1,000 rentable square
feet of the Additional Space, thirty-five percent (35%) of which will be covered
parking spaces (or 88 total additional parking spaces [31 of which will be
covered parking spaces] based upon an Additional Space consisting of 15,942
rentable square feet). Except as expressly set forth to the contrary in this
Section 8, all such parking spaces will be provided to Lessee pursuant to the
terms and provisions of the Lease, including, without limitation, Article XLIII
thereof.

         9.       Commencing on the Additional Space Commencement Date, based
upon the additional parking spaces to be provided to Lessee pursuant to Section
8 of this Seventh Amendment, Section 6 of the Sixth Amendment is hereby deleted
in its entirety and the following text is substituted in its place:

                  6.       Prior to commencement of construction of the Phase II
                  Building, Lessor shall give Lessee written notice thereof and
                  Lessee's parking spaces will automatically be relocated from
                  the surface parking lot located on the Property to a surface
                  parking lot Developer or Lessor will construct on Phase II
                  prior to the Exchange and to the Parking Structure. Lessor
                  must relocate at least 210 of Lessee's covered parking spaces
                  to covered parking spaces in the Parking Structure. The 210
                  covered parking spaces in the Parking Structure must be
                  located in the easternmost portions of the Parking Structure.
                  Lessor may relocate the remaining 119 covered spaces Lessor is
                  obligated to provide to Lessee either to covered spaces in the
                  Parking Structure or to covered spaces on the surface parking
                  lot to be constructed on Phase II. If Lessor does not relocate
                  all 329 of the covered parking spaces Lessor is obligated to
                  provide to Lessee to covered spaces

                                       3

<PAGE>

                  in the Parking Structure, Lessor must, at no cost to Lessee,
                  increase the number of covered parking spaces Lessor provides
                  to Lessee from 329 to 359. If Lessor is obligated to increase
                  the number of covered parking spaces Lessor provides to Lessee
                  from 329 to 359, Lessor is not obligated to increase the
                  number of total parking spaces Lessor provides to Lessee, so
                  Lessee will have 30 fewer uncovered parking spaces.

         10.      Tenant represents that Tenant has dealt with no brokers in
connection with this Seventh Amendment other than Lee & Associates Arizona
Commercial Real Estate Services Com. and Opus West Management Corporation
(collectively, the "Brokers") and that insofar as Tenant knows, no other broker
negotiated or participated in negotiations of this Seventh Amendment or is
entitled to any commission in connection therewith. Landlord and Tenant agree
that no broker (other than the Brokers) shall be entitled to any commission in
connection with the expansion of the Premises. Tenant shall defend, indemnify
and hold harmless Landlord from and against any and all claims of brokers,
finders or any like third party claiming any right to commission or compensation
by or through acts of Tenant in connection herewith other than the Brokers.
Landlord shall pay the Brokers pursuant to a separate agreement and shall
defend, indemnify and hold harmless Tenant from and against any and all claims
of brokers, finders or any like third party claiming any right to commission or
compensation by or through acts of Landlord in connection herewith including the
Brokers.

         11.      Except as otherwise expressly modified in this Seventh
Amendment, the terms and provisions of the Lease are and shall remain in full
force and effect. In the event of any conflict or inconsistency between the
terms and provisions of the Lease and the terms and provisions of this Seventh
Amendment, the terms and provisions of this Seventh Amendment shall govern and
control.

         12.      This Seventh Amendment may be executed in any number of
counterparts, all of which together shall be deemed to constitute one
instrument, and each of which shall be deemed an original.

                  IN WITNESS WHEREOF, the parties have executed this Seventh
Amendment to Office Lease as of the day and year first above written.

Lessor:                                     Lessee:

OPUS REAL ESTATE ARIZONA II,                JDA SOFTWARE GROUP, INC., a
L.L.C., a Delaware limited liability        Delaware corporation
company

By /s/ Andrew C. Deckas                     By /s/ Kristen E. Magnuson
   --------------------                        -----------------------
Name:  Andrew C. Deckas                     Name:  Kristen E. Magnuson
Title: Vice President                       Title: EVP/CFO

                                       4

<PAGE>

[OPUS LETTERHEAD]

June 30, 2003

VIA FEDERAL EXPRESS

JDA Software Group, Inc.
14400 North 87th Street
Scottsdale, Arizona 85260
Attention: Kristen L. Magnuson, CFO

                  Re:      Office Lease Scottsdale Northsight II dated May 25,
                           2001 by and between Opus West Corporation, a
                           Minnesota corporation ("Opus West"), and JDA Software
                           Group, Inc., a Delaware corporation ("JDA"), as
                           terminated by that certain Letter Agreement dated
                           September 19, 2001 between Opus West and JDA (as
                           terminated, the "Lease")

Ladies and Gentlemen:

                  You will recall that Articles XXIX (Expansion Right) and XXXV
(First Right of Offer) of the Lease survived the termination thereof. In light
of the fact that Opus West presently plans to acquire the Property and construct
the Building thereon (the "Phase II Building"), the purpose of this letter
agreement (the "Letter Agreement") is to confirm the understanding between the
parties in connection with, and to restate in their entirety, JDA's surviving
rights under the Lease. Capitalized terms used in this Letter Agreement and not
otherwise defined herein shall have the meanings given to them in the Lease.

                  The parties hereto acknowledge and agree that the following
rights expressly survived the termination of the Lease and, assuming Opus West
acquires the Property and constructs the Phase II Building thereon, will remain
in full force and effect pursuant to the terms and provisions of this Letter
Agreement:

         1.       EXPANSION RIGHT: Subject to the terms and conditions set forth
                  in this Section 1, the owner of the Phase II Building (the
                  "Phase II Owner") grants to JDA the right ("Offer Right") to
                  be offered by the Phase II Owner the opportunity to lease an
                  approximately 11,000 rentable square foot contiguous block of
                  space in the Phase II Building (the "Expansion Space"), which
                  Expansion Space will be provided to JDA, if at all, between
                  the sixtieth (60th) and seventy-second (72nd) calendar month
                  after the date of issuance of all governmental approvals of
                  substantial completion of the Phase II Building shell (the
                  "Offer Right Period"). The location of such space will be
                  determined by Landlord in Landlord's sole and absolute
                  discretion. At least twelve (12) months prior to the date that
                  the Phase II Owner will make the Expansion Space available to
                  JDA, the Phase II Owner will give JDA written notice of the
                  availability and location thereof and the date upon which the
                  Expansion Space can be delivered to JDA (the "Expansion Space
                  Delivery Date"). At least nine (9) months prior to the
                  Expansion Space Delivery Date, JDA shall notify the Phase II
                  Owner in writing whether JDA elects to exercise its right to
                  lease the Expansion Space on the terms of this Section 1. If
                  JDA elects not to lease the Expansion Space, the provisions of
                  this Section 1 shall be null, void and of no further force or
                  effect. Failure of JDA to timely respond in writing will be
                  deemed an election by JDA not to lease such

<PAGE>

[OPUS LETTERHEAD]

                  Expansion Space from the Phase II Owner. Within thirty (30)
                  days of receipt of JDA's notice indicating JDA's decision to
                  lease the Expansion Space, the Phase II Owner shall provide
                  JDA a form of lease in regard to JDA's lease of the Expansion
                  Space. The lease of the Expansion Space shall commence upon
                  delivery of the Expansion Space to JDA, shall expire on
                  December 31, 2014 and Base Rent for the Expansion Space will
                  be at $17.00 per rentable square foot of the Expansion Space
                  for months one (1) through thirty (30) of such term and at
                  $18.50 per rentable square foot of the Expansion Space for
                  months thirty-one (31) through the expiration of such term.
                  The Expansion Space will be provided to JDA in "as is"
                  condition without representation or warranty by the Phase II
                  Owner and without any obligation on the Phase II Owner's part
                  to construct any tenant improvements therein or to pay any
                  brokerage commission relating thereto. With respect to tenant
                  improvements, if the Expansion Space is in "shell" condition
                  (e.g., the Expansion Space has not previously been improved
                  for occupancy by a tenant on the Expansion Space Delivery
                  Date), the Phase II Owner shall provide to JDA a tenant
                  improvement allowance relating to the Expansion Space at then
                  fair market rates for similar buildings, taking into account
                  the term of the lease of the Expansion Space, the condition of
                  the Expansion Space as of the date of commencement of JDA's
                  leasing thereof, and other relevant factors. If the Expansion
                  Space has previously been improved for occupancy by a tenant,
                  no tenant improvement allowance will be payable with respect
                  thereto.

         2.       FIRST RIGHT OF OFFER: Subject to the terms and conditions set
                  forth in this Section 2, the Phase II Owner grants to JDA the
                  first right ("First Right") to be offered by the Phase II
                  Owner to lease all or a portion of the leasable area in the
                  Phase II Building. If, at any time while this First Right is
                  in effect, the Phase II Owner should intend to lease any
                  portion of such space to a third party tenant (the "Available
                  Space"), then the Phase II Owner shall first offer to lease
                  the Available Space to JDA and provide to JDA the terms of the
                  Phase II Owner's offer to such third party (the "Third Party
                  Terms"). In the event the Phase II Owner offers to Lease the
                  Available Space to JDA pursuant to this Section 2, JDA shall
                  notify the Phase II Owner in writing within ten (10) business
                  days of its receipt of the Phase II Owner's notice whether JDA
                  desires to lease the Available Space from the Phase II Owner
                  on the Third Party Terms. If JDA notifies the Phase II Owner
                  in writing within such ten-business day period that JDA does
                  not desire to lease the Available Space, or if JDA does not
                  respond in writing to the Phase II Owner's notice within such
                  ten-business day period, then, in either of the above
                  instances, the Phase II Owner's obligations under this Section
                  2 shall automatically and forever terminate as to the
                  Available Space and the Phase II Owner shall thereafter be
                  entitled to lease the Available Space to the existing, or any
                  future third party tenant, free of any rights of JDA therein.
                  If JDA notifies the Phase II Owner in writing within such
                  ten-business day period that JDA desires to lease the
                  Available Space from the Phase II Owner on the Third Party
                  Terms, the parties shall thereafter execute a form of lease in
                  regard to JDA's lease of the Available Space (which lease form
                  shall provide for JDA's lease of the Available Space on the
                  Third Party Terms). Subject to the termination thereof as
                  described in the second preceding sentence, the First Right
                  described herein is intended by the parties to be valid
                  through the end of the sixtieth (60th) calendar month after
                  the date of issuance of all governmental approvals of
                  substantial completion of the Phase II Building shell and
                  shall be of no further force or effect thereafter. The purpose
                  of this Section 2 is to provide notice to JDA so that JDA may
                  be in a position to lease portions of the Phase II Building on
                  a competitive basis with others, and, notwithstanding anything
                  to the contrary contained in this Section 2, nothing in this
                  Section shall be deemed to be an option or right of first
                  refusal.

                                     Page 2

<PAGE>

[OPUS LETTERHEAD]

         3.       PHASE II BUILDING NAME/SIGNAGE: The Phase II Owner hereby
                  agrees that the Phase II Owner will not permit the following
                  tenants to place signage on the Phase II Building: Accenture,
                  AC Nielson Corporation, Armature Ltd., GERS, Inc., i2
                  Technologies, Information Resources, Inc., KhiMetrics, Inc.,
                  Manugistics Group, Inc., Marketmax, Inc., nsb Retail Systems
                  PLC, Oracle Corporation, Retek, Inc., SAP AG, SVI Holdings,
                  Inc., TCI Solutions, Inc. Notwithstanding the foregoing, in
                  the event that JDA has not leased space in the Phase II
                  Building on or before the expiration of the sixtieth (60th)
                  month after the date of issuance of all governmental approvals
                  of substantial completion of the Phase II Building shell, then
                  in that event the terms and provisions of this Section 3 shall
                  immediately thereafter terminate automatically and without
                  further action of the parties.

         4.       TRANSFER OF PHASE II OWNER'S INTEREST: If Opus West or any
                  subsequent Phase II Owner transfers (other than for collateral
                  security purposes) its ownership interest in the Phase II
                  Building, the transferor is automatically relieved of all
                  obligations on the part of the Phase II Owner accruing under
                  this Letter Agreement from and after the date of such
                  transfer, provided that the transferee agrees in writing to
                  assume such obligations. The Phase II Owner's covenants and
                  obligations in this Letter Agreement bind each successive
                  Phase II Owner only during and with respect to its respective
                  period of ownership. In the event that Opus West elects to
                  transfer its ownership interest in the Phase II Building to a
                  third party, Opus West agrees to disclose the terms and
                  provisions of this Letter Agreement to such third party in
                  connection with such transfer.

                  Assuming that the foregoing rights correctly describe your
understanding of those rights granted to JDA under the Lease that expressly
survived the termination thereof, please have the appropriate JDA representative
acknowledge its agreement with the terms and provisions herein by signing this
letter in the space provided below and returning a copy thereof to my attention
via facsimile at 602-468-7045.

                                     Page 3

<PAGE>

[OPUS LETTERHEAD]

                  If you have questions or comments concerning any of the
matters contained herein, do not hesitate to contact me.

                                    Very truly yours,

                                    OPUS WEST CORPORATION, a Minnesota
                                    corporation

                                    By /s/ Thomas W. Roberts
                                       ---------------------
                                    Name:  Thomas W. Roberts
                                    Title: President

AGREED AND ACKNOWLEDGED this 30th day
of June, 2003:

JDA SOFTWARE GROUP, INC., a Delaware
corporation

By /s/ Kristen R. Magnuson
   -----------------------
Name:  Kristen R. Magnuson
Title: EVP/CFO

cc:      Daniel T. Haug, Esq. (via interoffice delivery)
         Mr. Jeff Roberts (via interoffice delivery)
         Mr. Adrian Evarkiou (via interoffice delivery)
         Mr. Gregory L. Mast (via facsimile: 602-530-8500)

                                     Page 4<PAGE>
                                                       Exhibit 10.22

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

                         SWIFT TRANSPORTATION CO., INC.,
                             an Arizona corporation

                                       and

                         SWIFT TRANSPORTATION CO., INC.
                              a Nevada corporation

     $100,000,000 3.73% Senior Guaranteed Notes, Series A, Due June 27, 2008
     $100,000,000 4.33% Senior Guaranteed Notes, Series B, Due June 27, 2010

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

                             NOTE PURCHASE AGREEMENT

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

                            Dated as of June 27, 2003

--------------------------------------------------------------------------------
<PAGE>
                                TABLE OF CONTENTS

                          (Not a part of the Agreement)

<TABLE>
<CAPTION>
SECTION                               HEADING                                                                     PAGE

<S>                     <C>                                                                                       <C>
SECTION 1.              AUTHORIZATION OF NOTES................................................................      1

SECTION 2.              SALE AND PURCHASE OF NOTES; GUARANTIES................................................      2

       Section 2.1.     Sale and Purchase of Notes............................................................      2
       Section 2.2.     Guaranties............................................................................      2

SECTION 3.              CLOSING...............................................................................      2

SECTION 4.              CONDITIONS TO CLOSING.................................................................      3

       Section 4.1.     Representations and Warranties........................................................      3
       Section 4.2.     Performance; No Default...............................................................      3
       Section 4.3.     Compliance Certificates...............................................................      3
       Section 4.4.     Constituent Company Guaranty..........................................................      4
       Section 4.5.     Opinions of Counsel...................................................................      4
       Section 4.6.     Purchase Permitted By Applicable Law, Etc.............................................      4
       Section 4.7.     Sale of Other Notes...................................................................      4
       Section 4.8.     Payment of Special Counsel Fees.......................................................      4
       Section 4.9.     Private Placement Numbers.............................................................      5
       Section 4.10.    Changes in Corporate Structure........................................................      5
       Section 4.11.    Funding Instructions..................................................................      5
       Section 4.12.    Proceedings and Documents.............................................................      5

SECTION 5.              REPRESENTATIONS AND WARRANTIES........................................................      5

       Section 5.1.     Representations and Warranties of the Parent Corporation..............................      5
       Section 5.1.1.   Organization; Power and Authority.....................................................      5
       Section 5.1.2.   Authorization, Etc....................................................................      5
       Section 5.1.3.   Disclosure............................................................................      6
       Section 5.1.4.   Organization and Ownership of Shares of Subsidiaries; Affiliates......................      6
       Section 5.1.5.   Financial Statements..................................................................      7
       Section 5.1.6.   Compliance with Laws, Other Instruments, Etc..........................................      7
       Section 5.1.7.   Governmental Authorizations, Etc......................................................      7
       Section 5.1.8.   Litigation; Observance of Agreements, Statutes and Orders.............................      7
       Section 5.1.9.   Taxes.................................................................................      8
       Section 5.1.10.      Title to Property; Leases.........................................................      8
       Section 5.1.11.      Licenses, Permits, Etc............................................................      8
       Section 5.1.12.      Compliance with ERISA.............................................................      9
       Section 5.1.13.      Private Offering by the Parent Corporation........................................     10
</TABLE>

                                      -i-
<PAGE>
<TABLE>
<S>                     <C>                                                                                       <C>
       Section 5.1.14.      Use of Proceeds; Margin Regulations...............................................     10
       Section 5.1.15.      Existing Debt; Future Liens.......................................................     10
       Section 5.1.16.      Foreign Assets Control Regulations, Etc...........................................     11
       Section 5.1.17.      Status under Certain Statutes.....................................................     11
       Section 5.1.18.      Obligations Rank Pari Passu.......................................................     11
       Section 5.2.     Representations and Warranties of the Company.........................................     12
       Section 5.2.1.   Organization; Power and Authority.....................................................     12
       Section 5.2.2.   Authorization, Etc....................................................................     12
       Section 5.2.3.   Compliance with Laws, Other Instruments, Etc..........................................     12
       Section 5.2.4.   Governmental Authorizations, Etc......................................................     13
       Section 5.2.5.   Litigation; Observance of Agreements, Statutes and Orders.............................     13
       Section 5.2.6.   Taxes.................................................................................     13
       Section 5.2.7.   Title to Property; Leases.............................................................     13
       Section 5.2.8.   Licenses, Permits, Etc................................................................     14
       Section 5.2.9.   Private Offering by the Company.......................................................     14
       Section 5.2.10.      Use of Proceeds; Margin Regulations...............................................     14
       Section 5.2.11.      Obligations Rank Pari Passu.......................................................     14
       Section 5.2.12.      Solvency..........................................................................     15

SECTION 6.              REPRESENTATIONS OF THE PURCHASER......................................................     15

       Section 6.1.     Purchase for Investment...............................................................     15
       Section 6.2.     Source of Funds.......................................................................     15

SECTION 7.              INFORMATION AS TO THE PARENT CORPORATION..............................................     16

       Section 7.1.     Financial and Business Information....................................................     16
       Section 7.2.     Officer's Certificate.................................................................     18
       Section 7.3.     Inspection............................................................................     19

SECTION 8.              PREPAYMENT OF THE NOTES...............................................................     19

       Section 8.1.     No Required Prepayments...............................................................     19
       Section 8.2.     Optional Prepayments with Make-Whole Amount...........................................     20
       Section 8.3.     Allocation of Partial Prepayments.....................................................     20
       Section 8.4.     Maturity; Surrender, Etc..............................................................     20
       Section 8.5.     Purchase of Notes.....................................................................     20
       Section 8.6.     Make-Whole Amount.....................................................................     21

SECTION 9.              AFFIRMATIVE COVENANTS.................................................................     22

       Section 9.1.     Affirmative Covenants of the Parent Corporation.......................................     22
       Section 9.1.1.   Compliance with Law...................................................................     22
       Section 9.1.2.   Insurance.............................................................................     22
       Section 9.1.3.   Maintenance of Properties.............................................................     23
       Section 9.1.4.   Payment of Taxes and Claims...........................................................     23
       Section 9.1.5.   Corporate Existence, Etc..............................................................     23
       Section 9.1.6.   [Reserved.]...........................................................................     23
</TABLE>

                                      -ii-
<PAGE>
<TABLE>
<S>                     <C>                                                                                       <C>
       Section 9.1.7.   Parent Guaranty to Rank Pari Passu....................................................     23
       Section 9.1.8.   Guaranty by Additional Constituent Company Guarantors.................................     24
       Section 9.1.9.   Ownership.............................................................................     24
       Section 9.1.10.      Agreement to Seek Amendments......................................................     24
       Section 9.2.     Affirmative Covenants of the Company..................................................     24
       Section 9.2.1.   Compliance with Law...................................................................     24
       Section 9.2.2.   Insurance.............................................................................     25
       Section 9.2.3.   Maintenance of Properties.............................................................     25
       Section 9.2.4.   Payment of Taxes and Claims...........................................................     25
       Section 9.2.5.   Corporate Existence, Etc..............................................................     25
       Section 9.2.6.   Notes to Rank Pari Passu..............................................................     26

SECTION 10.             NEGATIVE COVENANTS....................................................................     26

       Section 10.1.    Consolidated Total Debt...............................................................     26
       Section 10.2.    Priority Debt.........................................................................     26
       Section 10.3.    Fixed Charges Coverage Ratio..........................................................     26
       Section 10.4.    Consolidated Tangible Net Worth.......................................................     26
       Section 10.5.    Limitation on Liens...................................................................     26
       Section 10.6.    Mergers, Consolidations and Sales of Assets...........................................     29
       Section 10.7.    Transactions with Affiliates..........................................................     33
       Section 10.8.    Restrictive Agreements................................................................     33
       Section 10.9.    Changes to Jurisdiction of Incorporation, Fiscal Year.................................     33
       Section 10.10.       Nature of Business................................................................     33

SECTION 11.             PARENT GUARANTY.......................................................................     33

       Section 11.1.    Parent Guaranty.......................................................................     33
       Section 11.2.    Obligations Absolute and Unconditional................................................     34
       Section 11.3.    Subrogation...........................................................................     38
       Section 11.4.    Preference............................................................................     38
       Section 11.5.    Marshalling...........................................................................     39
       Section 11.6.    Subordination.........................................................................     39

SECTION 12.             EVENTS OF DEFAULT.....................................................................     39

SECTION 13.             REMEDIES ON DEFAULT, ETC..............................................................     42

       Section 13.1.    Acceleration..........................................................................     42
       Section 13.2.    Other Remedies........................................................................     42
       Section 13.3.    Rescission............................................................................     42
       Section 13.4.    No Waivers or Election of Remedies, Expenses, Etc.....................................     43

SECTION 14.             REGISTRATION; EXCHANGE; SUBSTITUTION OF NOTES.........................................     43

       Section 14.1.    Registration of Notes.................................................................     43
       Section 14.2.    Transfer and Exchange of Notes........................................................     43
       Section 14.3.    Replacement of Notes..................................................................     44
</TABLE>

                                     -iii-
<PAGE>
<TABLE>
<S>                     <C>                                                                                       <C>
SECTION 15.             PAYMENTS ON NOTES.....................................................................     44

       Section 15.1.    Place of Payment......................................................................     44
       Section 15.2.    Home Office Payment...................................................................     44

SECTION 16.             EXPENSES, ETC.........................................................................     45

       Section 16.1.    Transaction Expenses..................................................................     45
       Section 16.2.    Survival..............................................................................     45

SECTION 17.             SURVIVAL OF REPRESENTATIONS AND WARRANTIES; ENTIRE AGREEMENT..........................     45

SECTION 18.             AMENDMENT AND WAIVER..................................................................     46

       Section 18.1.    Requirements..........................................................................     46
       Section 18.2.    Solicitation of Holders of Notes......................................................     46
       Section 18.3.    Binding Effect, Etc...................................................................     47
       Section 18.4.    Notes Held by Company, Etc............................................................     47

SECTION 19.             NOTICES...............................................................................     47

SECTION 20.             REPRODUCTION OF DOCUMENTS.............................................................     48

SECTION 21.             CONFIDENTIAL INFORMATION..............................................................     48

SECTION 22.             SUBSTITUTION OF PURCHASER.............................................................     49

SECTION 23.             MISCELLANEOUS.........................................................................     49

       Section 23.1.    Successors and Assigns................................................................     49
       Section 23.2.    Payments Due on Non-Business Days.....................................................     49
       Section 23.3.    Severability..........................................................................     50
       Section 23.4.    Construction..........................................................................     50
       Section 23.5.    Counterparts..........................................................................     50
       Section 23.6.    Governing Law.........................................................................     50
       Section 23.7.    Submission to Jurisdiction............................................................     50

Signature.....................................................................................................     51
</TABLE>

                                      -iv-
<PAGE>
SCHEDULE A        --   Information Relating To Purchasers

SCHEDULE B        --   Defined Terms

SCHEDULE 4.10     --   Changes in Corporate Structure

SCHEDULE 5.1.3    --   Disclosure Materials

SCHEDULE 5.1.4    --   Subsidiaries of the Company and Ownership of Subsidiary
                       Stock

SCHEDULE 5.1.5    --   Financial Statements

SCHEDULE 5.1.8    --   Certain Litigation

SCHEDULE 5.1.11   --   Licenses, Permits, etc.

SCHEDULE 5.1.14   --   Use of Proceeds

SCHEDULE 5.1.15   --   Existing Debt

EXHIBIT 1-A       --   Form of 3.73% Senior Guaranteed Note, Series A, due June
                       27, 2008

EXHIBIT 1-B       --   Form of 4.33% Senior Guaranteed Note, Series B, due June
                       27, 2010

EXHIBIT 4.5(a)    --   Form of Opinion of Special Counsel for the Parent
                       Corporation and the Company

EXHIBIT 4.5(b)    --   Form of Opinion of Special Counsel for the Purchasers

                                      -v-
<PAGE>
                         SWIFT TRANSPORTATION CO., INC.,
                             an Arizona corporation
                         SWIFT TRANSPORTATION CO., INC.,
                              a Nevada corporation

                                2200 75TH AVENUE
                             PHOENIX, ARIZONA 85043

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

     $100,000,000 3.73% Senior Guaranteed Notes, Series A, Due June 27, 2008
     $100,000,000 4.33% Senior Guaranteed Notes, Series B, Due June 27, 2010

                                                       Dated as of June 27, 2003

TO THE PURCHASERS LISTED IN
  THE ATTACHED SCHEDULE A:

Ladies and Gentlemen:

      SWIFT TRANSPORTATION CO., INC., an Arizona corporation (the "Company"),
and Swift Transportation Co., Inc., a Nevada corporation (the "Parent
Corporation"), hereby jointly and severally agree with the Purchasers listed in
the attached SCHEDULE A (the "Purchasers") to this Note Purchase Agreement (as
amended or supplemented from time to time, this "Agreement") as follows:

SECTION 1. AUTHORIZATION OF NOTES.

      The Company will authorize the issue and sale of:

            (a) $100,000,000 aggregate principal amount of its 3.73% Senior
      Guaranteed Notes, Series A, due June 27, 2008 (the "Series A Notes"); and

            (b) $100,000,000 aggregate principal amount of its 4.33% Senior
      Guaranteed Notes, Series B, due June 27, 2010 (the "Series B Notes").

The term "Notes" as used in this Agreement shall include the Series A Notes and
the Series B Notes, and any such notes issued in substitution therefor pursuant
to SECTION 14 of this Agreement. The Notes shall be substantially in the form
set out in EXHIBIT 1-A and EXHIBIT 1-B, respectively, with such changes
therefrom, if any, as may be approved by the Purchasers and the Company. Certain
capitalized terms used in this Agreement are defined in Schedule B;
<PAGE>
references to a "Schedule" or an "Exhibit" are, unless otherwise specified, to a
Schedule or an Exhibit attached to this Agreement.

SECTION 2. SALE AND PURCHASE OF NOTES; GUARANTIES.

      Section 2.1. Sale and Purchase of Notes. Subject to the terms and
conditions of this Agreement, the Company will issue and sell to each Purchaser
and each Purchaser will purchase from the Company, at the Closing provided for
in SECTION 3, Notes in the principal amount and of the series specified opposite
such Purchaser's name in SCHEDULE A at the purchase price of 100% of the
principal amount thereof. The obligations of each Purchaser hereunder are
several and not joint obligations and no Purchaser shall have any obligation or
liability to any Person for the performance or nonperformance by any other
Purchaser hereunder.

      Section 2.2. Guaranties. (a) The payment by the Company of all amounts due
with respect to the Notes and the performance by the Company of its obligations
under this Agreement will be absolutely and unconditionally guaranteed by the
Parent Corporation pursuant to the guaranty set forth in SECTION 11 of this
Agreement in favor of the holders of the Notes (the "Parent Guaranty").

      (b) The payment by the Company of all amounts due with respect to the
Notes and the performance by the Company of its obligations under this Agreement
will be absolutely and unconditionally guaranteed by each Constituent Company
which guarantees Debt outstanding under the Credit Agreement (together with any
additional Constituent Company which delivers a guaranty pursuant to SECTION
9.1.8, the "Constituent Company Guarantors") pursuant to a Constituent Company
Guaranty in form and substance reasonably satisfactory to the Purchasers.

SECTION 3. CLOSING.

      The sale and purchase of the Notes to be purchased by each Purchaser shall
occur at the offices of Chapman and Cutler, 111 West Monroe Street, Chicago,
Illinois 60603 at 10:00 a.m. Chicago time, at a closing (the "Closing") on June
27, 2003 or on such other Business Day thereafter on or prior to June 30, 2003
as may be agreed upon by the Company and the Purchasers. At the Closing, the
Company will deliver to each Purchaser the Notes to be purchased by such
Purchaser in the form of a single Note (or such greater number of Notes in
denominations of at least $100,000 as such Purchaser may request) dated the date
of the Closing and registered in such Purchaser's name (or in the name of such
Purchaser's nominee), against delivery by such Purchaser to the Company or its
order of immediately available funds in the amount of the purchase price
therefor by wire transfer of immediately available funds for credit to the
account of the Company, to account number 1536-5531-0032, at US Bank in
Portland, Oregon, ABA Number 123 000220, referencing Swift Transportation Co.,
Inc., all as more fully provided in the written instructions delivered by the
Company to the Purchasers pursuant to SECTION 4.11. If, at the Closing, the
Company shall fail to tender such Notes to any Purchaser as provided above in
this SECTION 3, or any of the conditions specified in SECTION 4 shall not have
been fulfilled to any Purchaser's satisfaction, such Purchaser shall, at such
Purchaser's election, be relieved of all further obligations under this
Agreement, without thereby waiving any rights such Purchaser may have by reason
of such failure or such nonfulfillment.

                                      -2-
<PAGE>
SECTION 4. CONDITIONS TO CLOSING.

      The obligation of each Purchaser to purchase and pay for the Notes to be
sold to such Purchaser at the Closing is subject to the fulfillment to such
Purchaser's satisfaction, prior to or at the Closing, of the following
conditions:

      Section 4.1. Representations and Warranties.

      (a) The representations and warranties of each of the Parent Corporation
and the Company in this Agreement shall be correct when made and at the time of
the Closing.

      (b) The representations and warranties of each Constituent Company
Guarantor in the Constituent Company Guaranty shall be correct when made and at
the time of the Closing.

      Section 4.2. Performance; No Default. Each of the Parent Corporation and
the Company shall have performed and complied with all agreements and conditions
contained in this Agreement required to be performed or complied with by the
Parent Corporation or the Company, as the case may be, prior to or at the
Closing, and after giving effect to the issue and sale of the Notes (and the
application of the proceeds thereof as contemplated by SCHEDULE 5.1.14), no
Default or Event of Default shall have occurred and be continuing. Neither the
Parent Corporation nor any Subsidiary shall have entered into any transaction
since the date of the Memorandum that would have been prohibited by SECTION 10
hereof had such Section applied since such date.

      Section 4.3. Compliance Certificates.

      (a) Parent Corporation Officer's Certificate. The Parent Corporation shall
have delivered to such Purchaser an Officer's Certificate, dated the date of the
Closing, certifying that the conditions specified in SECTIONS 4.1(A), 4.2 and
4.10 in respect of the Parent Corporation have been fulfilled.

      (b) Company Officer's Certificate. The Company shall have delivered to
such Purchaser an Officer's Certificate, dated the date of the Closing,
certifying that the conditions specified in SECTIONS 4.1(A), 4.2 and 4.10 in
respect of the Company have been fulfilled.

      (c) Constituent Company Guarantors' Officer's Certificates. Each
Constituent Company Guarantor shall have delivered to such Purchaser a
certificate of an authorized officer, dated the date of the Closing, certifying
that the condition specified in SECTION 4.1(B) in respect of such Constituent
Company Guarantor has been fulfilled.

      (d) Parent Corporation Secretary's Certificate. The Parent Corporation
shall have delivered to such Purchaser a certificate certifying as to the
resolutions of the Parent Corporation attached thereto and other corporate
proceedings relating to the authorization, execution and delivery of this
Agreement by the Parent Corporation.

                                      -3-
<PAGE>
      (e) Company Secretary's Certificate. The Company shall have delivered to
such Purchaser a certificate certifying as to the resolutions of the Company
attached thereto and other corporate proceedings relating to the authorization,
execution and delivery of the Notes and this Agreement by the Company.

      (f) Constituent Company Guarantors' Secretary's Certificates. Each
Constituent Company Guarantor shall have delivered to such Purchaser a
certificate certifying as to the resolutions of such Constituent Company
Guarantor attached thereto and other corporate proceedings relating to the
authorization, execution and delivery of the Constituent Company Guaranty by
such Constituent Company Guarantor.

      Section 4.4. Constituent Company Guaranty. The Constituent Company
Guaranty shall have been duly executed and delivered by the parties thereto and
shall be in full force and effect and such Purchaser shall have received a true,
correct and complete copy thereof.

      Section 4.5. Opinions of Counsel. Such Purchaser shall have received
opinions in form and substance satisfactory to such Purchaser, dated the date of
the Closing (a) from Snell & Wilmer L.L.P., counsel for the Parent Corporation
and the Company, covering the matters set forth in EXHIBIT 4.5(A) and covering
such other matters incident to the transactions contemplated hereby as such
Purchaser or such Purchaser's counsel may reasonably request (and the Company
hereby instructs its counsel to deliver such opinion to such Purchaser) and (b)
from Chapman and Cutler, such Purchaser's special counsel in connection with
such transactions, substantially in the form set forth in EXHIBIT 4.5(B) and
covering such other matters incident to such transactions as such Purchaser may
reasonably request.

      Section 4.6. Purchase Permitted By Applicable Law, Etc. On the date of the
Closing, each purchase of Notes shall (a) be permitted by the laws and
regulations of each jurisdiction to which each Purchaser is subject, without
recourse to provisions (such as Section 1405(a)(8) of the New York Insurance
Law) permitting limited investments by insurance companies without restriction
as to the character of the particular investment, (b) not violate any applicable
law or regulation (including, without limitation, Regulation T, U or X of the
Board of Governors of the Federal Reserve System), and (c) not subject such
Purchaser to any tax, penalty or liability under or pursuant to any applicable
law or regulation, which law or regulation was not in effect on the date hereof.
If requested by such Purchaser, such Purchaser shall have received an Officer's
Certificate certifying as to such matters of fact as such Purchaser may
reasonably specify to enable such Purchaser to determine whether such purchase
is so permitted.

      Section 4.7. Sale of Other Notes. The Company shall have consummated the
sale of the entire principal amount of the Notes scheduled to be sold on the
date of Closing pursuant to this Agreement.

      Section 4.8. Payment of Special Counsel Fees. Without limiting the
provisions of SECTION 16.1, the Company shall have paid, on or before the
Closing, the fees, charges and disbursements of the Purchasers' special counsel
referred to in SECTION 4.5 to the extent reflected in a statement of such
counsel rendered to the Company at least one Business Day prior to the Closing.

                                      -4-
<PAGE>
      Section 4.9. Private Placement Numbers. Private Placement Numbers issued
by Standard & Poor's CUSIP Service Bureau (in cooperation with the Securities
Valuation Office of the National Association of Insurance Commissioners) shall
have been obtained for the Series A Notes and the Series B Notes.

      Section 4.10. Changes in Corporate Structure. Except as set forth in
SCHEDULE 4.10, neither the Parent Corporation nor the Company shall have changed
its jurisdiction of incorporation or been a party to any consolidation or merger
and shall not have succeeded to all or any substantial part of the liabilities
of any other entity, at any time following the date of the most recent financial
statements referred to in SCHEDULE 5.1.5.

      Section 4.11. Funding Instructions. At least three Business Days prior to
the date of the Closing, such Purchaser shall have received written instructions
executed by a Responsible Officer of the Company directing the manner of the
payment of funds and setting forth (a) the name and address of the transferee
bank, (b) such transferee bank's ABA number, (c) the account name and number
into which the purchase price for the Notes is to be deposited, and (d) the name
and telephone number of the account representative responsible for verifying
receipt of such funds.

      Section 4.12. Proceedings and Documents. All corporate and other
proceedings in connection with the transactions contemplated by this Agreement
and all documents and instruments incident to such transactions shall be
satisfactory to such Purchaser and such Purchaser's special counsel, and such
Purchaser and such Purchaser's special counsel shall have received all such
counterpart originals or certified or other copies of such documents as such
Purchaser or such Purchaser's special counsel may reasonably request.

SECTION 5. REPRESENTATIONS AND WARRANTIES.

      Section 5.1. Representations and Warranties of the Parent Corporation. The
Parent Corporation represents and warrants to each Purchaser that:

      Section 5.1.1. Organization; Power and Authority. The Parent Corporation
is a corporation duly organized, validly existing and in good standing under the
laws of its jurisdiction of incorporation, and is duly qualified as a foreign
corporation and is in good standing in each jurisdiction in which such
qualification is required by law, other than those jurisdictions as to which the
failure to be so qualified or in good standing could not, individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect. The Parent
Corporation has the corporate power and authority to own or hold under lease the
properties it purports to own or hold under lease, to transact the business it
transacts and proposes to transact, to execute and deliver this Agreement and to
perform the provisions hereof.

      Section 5.1.2. Authorization, Etc. This Agreement has been duly authorized
by all necessary corporate action on the part of the Parent Corporation, and
this Agreement constitutes a legal, valid and binding obligation of the Parent
Corporation enforceable against the Parent Corporation in accordance with its
terms, except as such enforceability may be limited by (a) applicable
bankruptcy, insolvency, reorganization, moratorium or other similar laws
affecting

                                      -5-
<PAGE>
the enforcement of creditors' rights generally and (b) general principles of
equity (regardless of whether such enforceability is considered in a proceeding
in equity or at law).

      Section 5.1.3. Disclosure. The Parent Corporation, through its agent,
SunTrust Capital Markets, Inc., has delivered to each Purchaser a copy of a
Private Placement Memorandum, dated May, 2003 (including the filings made by the
Parent Corporation with the Securities and Exchange Commission incorporated
therein by reference, the "Memorandum"), relating to the transactions
contemplated hereby. The Memorandum fairly describes, in all material respects,
the general nature of the business and principal properties of the Parent
Corporation and its Subsidiaries. Except as disclosed in SCHEDULE 5.1.3, this
Agreement, the Memorandum, the documents, certificates and other writings
delivered to each Purchaser by or on behalf of the Parent Corporation in
connection with the transactions contemplated hereby and the financial
statements listed in SCHEDULE 5.1.5, taken as a whole, do not contain any untrue
statement of a material fact or omit to state any material fact necessary to
make the statements therein not misleading in light of the circumstances under
which they were made. Except as disclosed in the Memorandum, since December 31,
2002, there has been no change in the financial condition, operations, business,
properties or prospects of the Parent Corporation or any Subsidiary except
changes that individually or in the aggregate could not reasonably be expected
to have a Material Adverse Effect. There is no fact known to the Parent
Corporation or the Company that could reasonably be expected to have a Material
Adverse Effect that has not been set forth herein or in the Memorandum or in the
other documents, certificates and other writings delivered to each Purchaser by
or on behalf of the Parent Corporation specifically for use in connection with
the transactions contemplated hereby.

      Section 5.1.4. Organization and Ownership of Shares of Subsidiaries;
Affiliates. (a) SCHEDULE 5.1.4 contains (except as noted therein) complete and
correct lists of (i) the Parent Corporation's Subsidiaries, showing, as to each
Subsidiary, the correct name thereof, the jurisdiction of its organization, and
the percentage of shares of each class of its capital stock or similar equity
interests outstanding owned by the Parent Corporation and each other Subsidiary,
(ii) the Parent Corporation's Affiliates, other than Subsidiaries, and (iii) the
Parent Corporation's directors and senior officers.

      (b) All of the outstanding shares of capital stock or similar equity
interests of each Subsidiary shown in SCHEDULE 5.1.4 as being owned by the
Parent Corporation and its Subsidiaries have been validly issued, are fully paid
and nonassessable and are owned by the Parent Corporation or another Subsidiary
free and clear of any Lien (except as otherwise disclosed in SCHEDULE 5.1.4).

      (c) Each Subsidiary identified in SCHEDULE 5.1.4 is a corporation or other
legal entity duly organized, validly existing and in good standing under the
laws of its jurisdiction of organization, and is duly qualified as a foreign
corporation or other legal entity and is in good standing in each jurisdiction
in which such qualification is required by law, other than those jurisdictions
as to which the failure to be so qualified or in good standing could not,
individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect. Each such Subsidiary has the corporate or other power and
authority to own or hold under lease the

                                      -6-
<PAGE>
properties it purports to own or hold under lease and to transact the business
it transacts and proposes to transact.

      (d) No Subsidiary is a party to, or otherwise subject to, any legal
restriction or any agreement (other than this Agreement, the Credit Agreement
and customary limitations imposed by corporate law statutes) restricting the
ability of such Subsidiary to pay dividends out of profits or make any other
similar distributions of profits to the Parent Corporation or any of its
Subsidiaries that owns outstanding shares of capital stock or similar equity
interests of such Subsidiary.

      Section 5.1.5. Financial Statements. The Parent Corporation has delivered
to each Purchaser copies of the financial statements of the Parent Corporation
and its Subsidiaries listed on SCHEDULE 5.1.5. All of said financial statements
(including in each case the related schedules and notes) fairly present in all
material respects the consolidated financial position of the Parent Corporation
and its Subsidiaries as of the respective dates specified in such financial
statements and the consolidated results of their operations and cash flows for
the respective periods so specified and have been prepared in accordance with
GAAP consistently applied throughout the periods involved except as set forth in
the notes thereto (subject, in the case of any interim financial statements, to
normal year-end adjustments).

      Section 5.1.6. Compliance with Laws, Other Instruments, Etc. The
execution, delivery and performance by the Parent Corporation of this Agreement
will not (a) contravene, result in any breach of, or constitute a default under,
or result in the creation of any Lien in respect of any property of the Parent
Corporation or any Subsidiary under, any indenture, mortgage, deed of trust,
loan, purchase or credit agreement, lease, corporate charter or by-laws, or any
other agreement or instrument to which the Parent Corporation or any Subsidiary
is bound or by which the Parent Corporation or any Subsidiary or any of their
respective properties may be bound or affected, (b) conflict with or result in a
breach of any of the terms, conditions or provisions of any order, judgment,
decree, or ruling of any court, arbitrator or Governmental Authority applicable
to the Parent Corporation or any Subsidiary or (c) violate any provision of any
statute or other rule or regulation of any Governmental Authority applicable to
the Parent Corporation or any Subsidiary.

      Section 5.1.7. Governmental Authorizations, Etc. No consent, approval or
authorization of, or registration, filing or declaration with, any Governmental
Authority is required in connection with the execution, delivery or performance
by the Parent Corporation of this Agreement.

      Section 5.1.8. Litigation; Observance of Agreements, Statutes and Orders.
(a) There are no actions, suits or proceedings pending or, to the knowledge of
the Parent Corporation, threatened against or affecting the Parent Corporation
or any Subsidiary or any property of the Parent Corporation or any Subsidiary in
any court or before any arbitrator of any kind or before or by any Governmental
Authority that, individually or in the aggregate, could reasonably be expected
to have a Material Adverse Effect.

                                      -7-
<PAGE>
      (b) Neither the Parent Corporation nor any Subsidiary is in default under
any term of any agreement or instrument to which it is a party or by which it is
bound, or any order, judgment, decree or ruling of any court, arbitrator or
Governmental Authority or is in violation of any applicable law, ordinance, rule
or regulation (including without limitation Environmental Laws) of any
Governmental Authority, which default or violation, individually or in the
aggregate, could reasonably be expected to have a Material Adverse Effect.

      Section 5.1.9. Taxes. The Parent Corporation and its Subsidiaries have
filed all tax returns that are required to have been filed in any jurisdiction,
and have paid all taxes shown to be due and payable on such returns and all
other taxes and assessments levied upon them or their properties, assets, income
or franchises, to the extent such taxes and assessments have become due and
payable and before they have become delinquent, except for any taxes and
assessments (a) the amount of which is not individually or in the aggregate
Material or (b) the amount, applicability or validity of which is currently
being contested in good faith by appropriate proceedings and with respect to
which the Parent Corporation or a Subsidiary, as the case may be, has
established adequate reserves in accordance with GAAP. The Parent Corporation
knows of no basis for any other tax or assessment that could reasonably be
expected to have a Material Adverse Effect. The charges, accruals and reserves
on the books of the Parent Corporation and its Subsidiaries in respect of
Federal, state or other taxes for all fiscal periods are adequate. The Federal
income tax liabilities of the Parent Corporation and its Subsidiaries have been
determined by the Internal Revenue Service and paid for all fiscal years up to
and including the fiscal year ended December 31, 1998.

      Section 5.1.10. Title to Property; Leases. The Parent Corporation and its
Subsidiaries have good and sufficient title to their respective properties that
individually or in the aggregate are Material, including all such properties
reflected in the most recent audited balance sheet referred to in SECTION 5.1.5
or purported to have been acquired by the Parent Corporation or any Subsidiary
after said date (except as sold or otherwise disposed of in the ordinary course
of business), in each case free and clear of Liens prohibited by this Agreement.
All leases that individually or in the aggregate are Material are valid and
subsisting and are in full force and effect in all material respects.

      Section 5.1.11. Licenses, Permits, Etc. Except as disclosed in SCHEDULE
5.1.11,

            (a) the Parent Corporation and its Subsidiaries own or possess all
      licenses, permits, franchises, authorizations, patents, copyrights,
      service marks, trademarks and trade names, or rights thereto, that
      individually or in the aggregate are Material, without known conflict with
      the rights of others;

            (b) to the best knowledge of the Parent Corporation, no product of
      the Parent Corporation or any of its Subsidiaries infringes in any
      Material respect any license, permit, franchise, authorization, patent,
      copyright, service mark, trademark, trade name or other right owned by any
      other Person; and

            (c) to the best knowledge of the Parent Corporation, there is no
      Material violation by any Person of any right of the Parent Corporation or
      any of its Subsidiaries

                                      -8-
<PAGE>
      with respect to any patent, copyright, service mark, trademark, trade name
      or other right owned or used by the Parent Corporation or any of its
      Subsidiaries.

      Section 5.1.12. Compliance with ERISA. (a) The Parent Corporation and each
ERISA Affiliate have operated and administered each Plan in compliance with all
applicable laws except for such instances of noncompliance as have not resulted
in and could not reasonably be expected to result in a Material Adverse Effect.
Neither the Parent Corporation nor any ERISA Affiliate has incurred any
liability pursuant to Title I or IV of ERISA or the penalty or excise tax
provisions of the Code relating to employee benefit plans (as defined in Section
3 of ERISA), and no event, transaction or condition has occurred or exists that
could reasonably be expected to result in the incurrence of any such liability
by the Parent Corporation or any ERISA Affiliate, or in the imposition of any
Lien on any of the rights, properties or assets of the Parent Corporation or any
ERISA Affiliate, in either case pursuant to Title I or IV of ERISA or to such
penalty or excise tax provisions or to Section 401(a)(29) or 412 of the Code,
other than such liabilities or Liens as would not be individually or in the
aggregate Material.

      (b) The present value of the aggregate benefit liabilities under each of
the Plans (other than Multiemployer Plans), determined as of the end of such
Plan's most recently ended plan year on the basis of the actuarial assumptions
specified for funding purposes in such Plan's most recent actuarial valuation
report, did not exceed the aggregate current value of the assets of such Plan
allocable to such benefit liabilities by more than $2,000,000 in the case of any
single Plan and by more than $5,000,000 in the aggregate for all Plans. The term
"benefit liabilities" has the meaning specified in Section 4001 of ERISA and the
terms "current value" and "present value" have the meaning specified in Section
3 of ERISA.

      (c) The Parent Corporation and its ERISA Affiliates have not incurred
withdrawal liabilities (and are not subject to contingent withdrawal
liabilities) under Section 4201 or 4204 of ERISA in respect of Multiemployer
Plans that individually or in the aggregate are Material.

      (d) The expected post-retirement benefit obligation (determined as of the
last day of the Parent Corporation's most recently ended fiscal year in
accordance with Financial Accounting Standards Board Statement No. 106, without
regard to liabilities attributable to continuation coverage mandated by Section
4980B of the Code) of the Parent Corporation and its Subsidiaries is not
Material.

      (e) Each Non-U.S. Pension Plan has been maintained in substantial
compliance with its terms and with the requirements of any and all applicable
laws, statutes, rules, regulations and orders and has been maintained, where
required, in good standing with applicable regulatory authorities; neither the
Parent Corporation nor any Subsidiary has incurred any obligation in connection
with the termination of or withdrawal from any Non-U.S. Pension Plan; and the
present value of the accrued benefit liabilities (whether or not vested) under
each Non-U.S. Pension Plan, determined as of the end of the Parent Corporation's
most recently ended fiscal year on the basis of actuarial assumptions, each of
which is reasonable, did not exceed the current value of the assets of such
Non-U.S. Pension Plan allocable to such benefit liabilities. All contributions
required to be made with respect to a Non-U.S. Pension Plan have been timely
made.

                                      -9-
<PAGE>
      (f) The execution and delivery of this Agreement and the issuance and sale
of the Notes hereunder will not involve any transaction that is subject to the
prohibitions of Section 406 of ERISA or in connection with which a tax could be
imposed pursuant to Section 4975(c)(1)(A)-(D) of the Code. The representation by
the Parent Corporation in the first sentence of this SECTION 5.1.12(F) is made
in reliance upon and subject to the accuracy of each Purchaser's representation
in SECTION 6.2 as to the sources of the funds to be used to pay the purchase
price of the Notes to be purchased by such Purchaser.

      Section 5.1.13. Private Offering by the Parent Corporation. Neither the
Parent Corporation nor anyone acting on its behalf has offered the Notes, the
Parent Guaranty or the Constituent Company Guaranty or any similar securities
for sale to, or solicited any offer to buy any of the same from, or otherwise
approached or negotiated in respect thereof with, any Person other than the
Purchasers and not more than 18 other Institutional Investors, each of which has
been offered the Notes, the Parent Guaranty and the Constituent Company Guaranty
at a private sale for investment. Neither the Parent Corporation nor anyone
acting on its behalf has taken, or will take, any action that would subject the
issuance or sale of the Notes or the issuance of the Parent Guaranty or the
Constituent Company Guaranty to the registration requirements of Section 5 of
the Securities Act.

      Section 5.1.14. Use of Proceeds; Margin Regulations. The Parent
Corporation and the Company will apply the proceeds of the sale of the Notes as
set forth in SCHEDULE 5.1.14. No part of the proceeds from the sale of the Notes
hereunder will be used, directly or indirectly, for the purpose of buying or
carrying any margin stock within the meaning of Regulation U of the Board of
Governors of the Federal Reserve System (12 CFR 221), or for the purpose of
buying or carrying or trading in any securities under such circumstances as to
involve the Parent Corporation in a violation of Regulation X of said Board (12
CFR 224) or to involve any broker or dealer in a violation of Regulation T of
said Board (12 CFR 220). Margin stock does not constitute more than 10% of the
value of the consolidated assets of the Parent Corporation and its Subsidiaries
and the Parent Corporation does not have any present intention that margin stock
will constitute more than 10% of the value of such assets. As used in this
Section, the terms "margin stock" and "purpose of buying or carrying" shall have
the meanings assigned to them in said Regulation U.

      Section 5.1.15. Existing Debt; Future Liens. (a) SCHEDULE 5.1.15 sets
forth a complete and correct list of all outstanding Debt of the Parent
Corporation and its Subsidiaries as of May 31, 2003 (except as therein noted),
since which date there has been no Material change in the amounts, interest
rates, sinking funds, installment payments or maturities of the Debt of the
Parent Corporation or its Subsidiaries. Neither the Parent Corporation nor any
Subsidiary is in default and no waiver of default is currently in effect, in the
payment of any principal or interest on any Debt of the Parent Corporation or
such Subsidiary and no event or condition exists with respect to any Debt of the
Parent Corporation or any Subsidiary that would permit (or that with notice or
the lapse of time, or both, would permit) one or more Persons to cause such Debt
to become due and payable before its stated maturity or before its regularly
scheduled dates of payment.

                                      -10-
<PAGE>
      (b) Except as disclosed in SCHEDULE 5.1.15, neither the Parent Corporation
nor any Subsidiary has agreed or consented to cause or permit in the future
(upon the happening of a contingency or otherwise) any of its property, whether
now owned or hereafter acquired, to be subject to a Lien not permitted by
SECTION 10.5.

      Section 5.1.16. Foreign Assets Control Regulations, Etc. Neither the sale
of the Notes by the Company hereunder nor its use of the proceeds thereof will
violate the Trading with the Enemy Act, as amended, or any of the foreign assets
control regulations of the United States Treasury Department (31 CFR, Subtitle
B, Chapter V, as amended) or any enabling legislation or executive order
relating thereto. Without limiting the foregoing, (a) neither the Parent
Corporation nor any of its Subsidiaries (i) is a blocked person described in
Section 1 of Executive Order 13224 of September 23, 2001 Blocking Property and
Prohibiting Transaction With Persons Who Commit and Threaten to Commit, or
Support Terrorism (66 Fed. Reg. 49049 (2001)) or (ii) engages in any dealings or
transactions, or is otherwise associated, with any such blocked person and (b)
the Parent Corporation and its Subsidiaries are in compliance, in all Material
respects, with the USA Patriot Act of 2001 (signed into law October 26, 2001).

      Section 5.1.17. Status under Certain Statutes. Neither the Parent
Corporation nor any Subsidiary is an "investment company" registered or required
to be registered or subject to regulation under the Investment Company Act of
1940, as amended, or is subject to regulation under the Public Utility Holding
Company Act of 1935, as amended, the ICC Termination Act of 1995, as amended, or
the Federal Power Act, as amended.

      Section 5.1.18. Obligations Rank Pari Passu. The obligations of the Parent
Corporation under this Agreement (including the Parent Guaranty) rank at least
pari passu in right of payment with all other senior unsecured Debt (actual or
contingent) of the Parent Corporation, including, without limitation, all senior
unsecured Debt of the Parent Corporation described in SCHEDULE 5.1.15 hereto,
except as contemplated in SECTION 9.1.10.

      Section 5.1.19. Environmental Matters. Neither the Parent Corporation nor
any Subsidiary has knowledge of any claim or has received any notice of any
claim, and no proceeding has been instituted raising any claim against the
Parent Corporation or any of its Subsidiaries or any of their respective real
properties now or formerly owned, leased or operated by any of them or other
assets, alleging any damage to the environment or violation of any Environmental
Laws, except, in each case, such as could not reasonably be expected to result
in a Material Adverse Effect. Except as otherwise disclosed to the Purchasers in
writing:

            (a) neither the Parent Corporation nor any Subsidiary has knowledge
      of any facts which would give rise to any claim, public or private, of
      violation of Environmental Laws or damage to the environment emanating
      from, occurring on or in any way related to real properties now or
      formerly owned, leased or operated by any of them or to other assets or
      their use, except, in each case, such as could not reasonably be expected
      to result in a Material Adverse Effect;

            (b) neither the Parent Corporation nor any of its Subsidiaries has
      stored any Hazardous Materials on real properties now or formerly owned,
      leased or operated by any

                                      -11-
<PAGE>
      of them or has disposed of any Hazardous Materials in a manner contrary to
      any Environmental Laws in each case in any manner that could reasonably be
      expected to result in a Material Adverse Effect; and

            (c) all buildings and structures (including, without limitation,
      fuel storage tanks) on all real properties now owned, leased or operated
      by the Parent Corporation or any of its Subsidiaries are in compliance
      with applicable Environmental Laws, except where failure to comply could
      not reasonably be expected to result in a Material Adverse Effect.

      Section 5.2. Representations and Warranties of the Company. The Company
represents and warrants to each Purchaser that:

      Section 5.2.1. Organization; Power and Authority. The Company is a
corporation duly organized, validly existing and in good standing under the laws
of its jurisdiction of incorporation, and is duly qualified as a foreign
corporation and is in good standing in each jurisdiction in which such
qualification is required by law, other than those jurisdictions as to which the
failure to be so qualified or in good standing could not, individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect. The Company
has the corporate power and authority to own or hold under lease the properties
it purports to own or hold under lease, to transact the business it transacts
and proposes to transact, to execute and deliver this Agreement and the Notes
and to perform the provisions hereof and thereof.

      Section 5.2.2. Authorization, Etc. This Agreement and the Notes have been
duly authorized by all necessary corporate action on the part of the Company,
and this Agreement constitutes, and upon execution and delivery thereof each
Note will constitute, a legal, valid and binding obligation of the Company
enforceable against the Company in accordance with its terms, except as such
enforceability may be limited by (a) applicable bankruptcy, insolvency,
reorganization, moratorium or other similar laws affecting the enforcement of
creditors' rights generally and (b) general principles of equity (regardless of
whether such enforceability is considered in a proceeding in equity or at law).

      Section 5.2.3. Compliance with Laws, Other Instruments, Etc. The
execution, delivery and performance by the Company of this Agreement and the
Notes will not (a) contravene, result in any breach of, or constitute a default
under, or result in the creation of any Lien in respect of any property of the
Company or any Subsidiary of the Company under, any indenture, mortgage, deed of
trust, loan, purchase or credit agreement, lease, corporate charter or by-laws,
or any other agreement or instrument to which the Company or any Subsidiary of
the Company is bound or by which the Company or any Subsidiary of the Company or
any of their respective properties may be bound or affected, (b) conflict with
or result in a breach of any of the terms, conditions or provisions of any
order, judgment, decree, or ruling of any court, arbitrator or Governmental
Authority applicable to the Company or any Subsidiary of the Company or (c)
violate any provision of any statute or other rule or regulation of any
Governmental Authority applicable to the Company or any Subsidiary of the
Company.

                                      -12-
<PAGE>
      Section 5.2.4. Governmental Authorizations, Etc. No consent, approval or
authorization of, or registration, filing or declaration with, any Governmental
Authority is required in connection with the execution, delivery or performance
by the Company of this Agreement or the Notes.

      Section 5.2.5. Litigation; Observance of Agreements, Statutes and Orders.
(a) There are no actions, suits or proceedings pending or, to the knowledge of
the Company, threatened against or affecting the Company or any Subsidiary of
the Company or any property of the Company or any Subsidiary of the Company in
any court or before any arbitrator of any kind or before or by any Governmental
Authority that, individually or in the aggregate, could reasonably be expected
to have a Material Adverse Effect.

      (b) Neither the Company nor any Subsidiary of the Company is in default
under any term of any agreement or instrument to which it is a party or by which
it is bound, or any order, judgment, decree or ruling of any court, arbitrator
or Governmental Authority or is in violation of any applicable law, ordinance,
rule or regulation (including without limitation Environmental Laws) of any
Governmental Authority, which default or violation, individually or in the
aggregate, could reasonably be expected to have a Material Adverse Effect.

      Section 5.2.6. Taxes. The Company and its Subsidiaries have filed all tax
returns that are required to have been filed in any jurisdiction, and have paid
all taxes shown to be due and payable on such returns and all other taxes and
assessments levied upon them or their properties, assets, income or franchises,
to the extent such taxes and assessments have become due and payable and before
they have become delinquent, except for any taxes and assessments (a) the amount
of which is not individually or in the aggregate Material or (b) the amount,
applicability or validity of which is currently being contested in good faith by
appropriate proceedings and with respect to which the Company or a Subsidiary of
the Company, as the case may be, has established adequate reserves in accordance
with GAAP. The Company knows of no basis for any other tax or assessment that
could reasonably be expected to have a Material Adverse Effect. The charges,
accruals and reserves on the books of the Company and its Subsidiaries in
respect of Federal, state or other taxes for all fiscal periods are adequate.
The Federal income tax liabilities of the Company and its Subsidiaries have been
determined by the Internal Revenue Service and paid for all fiscal years up to
and including the fiscal year ended December 31, 1998.

      Section 5.2.7. Title to Property; Leases. The Company and its Subsidiaries
have good and sufficient title to their respective properties that individually
or in the aggregate are Material, including all such properties reflected in the
most recent audited balance sheet referred to in SECTION 5.1.5 or purported to
have been acquired by the Company or any Subsidiary of the Company after said
date (except as sold or otherwise disposed of in the ordinary course of
business), in each case free and clear of Liens prohibited by this Agreement.
All leases that individually or in the aggregate are Material are valid and
subsisting and are in full force and effect in all material respects.

                                      -13-
<PAGE>
      Section 5.2.8. Licenses, Permits, Etc. Except as disclosed in SCHEDULE
5.1.11,

            (a) the Company and its Subsidiaries own or possess all licenses,
      permits, franchises, authorizations, patents, copyrights, service marks,
      trademarks and trade names, or rights thereto, that individually or in the
      aggregate are Material, without known conflict with the rights of others;

            (b) to the best knowledge of the Company, no product of the Company
      or any of its Subsidiaries infringes in any Material respect any license,
      permit, franchise, authorization, patent, copyright, service mark,
      trademark, trade name or other right owned by any other Person; and

            (c) to the best knowledge of the Company, there is no Material
      violation by any Person of any right of the Company or any of its
      Subsidiaries with respect to any patent, copyright, service mark,
      trademark, trade name or other right owned or used by the Company or any
      of its Subsidiaries.

      Section 5.2.9. Private Offering by the Company. Neither the Company nor
anyone acting on its behalf has offered the Notes, the Parent Guaranty or the
Constituent Company Guaranty or any similar securities for sale to, or solicited
any offer to buy any of the same from, or otherwise approached or negotiated in
respect thereof with, any Person other than the Purchasers and not more than 18
other Institutional Investors, each of which has been offered the Notes, the
Parent Guaranty or the Constituent Company Guaranty at a private sale for
investment. Neither the Company nor anyone acting on its behalf has taken, or
will take, any action that would subject the issuance or sale of the Notes or
the issuance of the Parent Guaranty or the Constituent Company Guaranty to the
registration requirements of Section 5 of the Securities Act.

      Section 5.2.10. Use of Proceeds; Margin Regulations. The Company will
apply the proceeds of the sale of the Notes as set forth in SCHEDULE 5.1.14. No
part of the proceeds from the sale of the Notes hereunder will be used, directly
or indirectly, for the purpose of buying or carrying any margin stock within the
meaning of Regulation U of the Board of Governors of the Federal Reserve System
(12 CFR 221), or for the purpose of buying or carrying or trading in any
securities under such circumstances as to involve the Company in a violation of
Regulation X of said Board (12 CFR 224) or to involve any broker or dealer in a
violation of Regulation T of said Board (12 CFR 220). Margin stock does not
constitute more than 5% of the value of the consolidated assets of the Company
and its Subsidiaries and the Company does not have any present intention that
margin stock will constitute more than 5% of the value of such assets. As used
in this Section, the terms "margin stock" and "purpose of buying or carrying"
shall have the meanings assigned to them in said Regulation U.

      Section 5.2.11. Obligations Rank Pari Passu. The obligations of the
Company under this Agreement and the Notes rank at least pari passu in right of
payment with all other senior unsecured Debt (actual or contingent) of the
Company, including, without limitation, all senior unsecured Debt of the Company
described in SCHEDULE 5.1.15 hereto, except as contemplated in SECTION 9.1.10.

                                      -14-
<PAGE>
      Section 5.2.12. Solvency. On the date of Closing, after giving effect to
the issuance of the Notes and the application of the proceeds thereof, the
Company is Solvent.

SECTION 6. REPRESENTATIONS OF THE PURCHASER.

      Section 6.1. Purchase for Investment. Each Purchaser represents that it is
purchasing the Notes for its own account or for one or more separate accounts
maintained by it or for the account of one or more pension or trust funds and
not with a view to the distribution thereof, provided that the disposition of
such Purchaser's or such pension or trust funds' property shall at all times be
within such Purchaser's or such pension or trust funds' control. Each Purchaser
understands that the Notes have not been registered under the Securities Act and
may be resold only if registered pursuant to the provisions of the Securities
Act or if an exemption from registration is available, except under
circumstances where neither such registration nor such an exemption is required
by law, and that the Company is not required to register the Notes.

      Section 6.2. Source of Funds. Each Purchaser represents that at least one
of the following statements is an accurate representation as to each source of
funds (a "Source") to be used by it to pay the purchase price of the Notes to be
purchased by it hereunder:

            (a) the Source is an "insurance company general account" within the
      meaning of Department of Labor Prohibited Transaction Exemption ("PTE")
      95-60 (issued July 12, 1995) and there is no employee benefit plan,
      treating as a single plan all plans maintained by the same employer or
      employee organization, with respect to which the amount of the general
      account reserves and liabilities for all contracts held by or on behalf of
      such plan, exceeds 10% of the total reserves and liabilities of such
      general account (exclusive of separate account liabilities) plus surplus,
      as set forth in the NAIC Annual Statement for such Purchaser most recently
      filed with such Purchaser's state of domicile; or

            (b) the Source is either (i) an insurance company pooled separate
      account, within the meaning of PTE 90-1 (issued January 29, 1990), or (ii)
      a bank collective investment fund, within the meaning of the PTE 91-38
      (issued July 12, 1991) and, except as such Purchaser has disclosed to the
      Company in writing pursuant to this paragraph (b), no employee benefit
      plan or group of plans maintained by the same employer or employee
      organization beneficially owns more than 10% of all assets allocated to
      such pooled separate account or collective investment fund; or

            (c) the Source constitutes assets of an "investment fund" (within
      the meaning of Part V of the QPAM Exemption) managed by a "qualified
      professional asset manager" or "QPAM" (within the meaning of Part V of the
      QPAM Exemption), no employee benefit plan's assets that are included in
      such investment fund, when combined with the assets of all other employee
      benefit plans established or maintained by the same employer or by an
      affiliate (within the meaning of Section V(c)(1) of the QPAM Exemption) of
      such employer or by the same employee organization and managed by such
      QPAM, exceed 20% of the total client assets managed by such QPAM, the
      conditions of Part I(c) and (g) of the QPAM Exemption are satisfied,
      neither the QPAM

                                      -15-
<PAGE>
      nor a person controlling or controlled by the QPAM (applying the
      definition of "control" in Section V(e) of the QPAM Exemption) owns a 5%
      or more interest in either the Company or the Parent Corporation and (i)
      the identity of such QPAM and (ii) the names of all employee benefit plans
      whose assets are included in such investment fund have been disclosed to
      the Company in writing pursuant to this paragraph (c); or

            (d) the Source is a governmental plan; or

            (e) the Source is one or more employee benefit plans, or a separate
      account or trust fund comprised of one or more employee benefit plans,
      each of which has been identified to the Company in writing pursuant to
      this paragraph (e); or

            (f) the Source does not include assets of any employee benefit plan,
      other than a plan exempt from the coverage of ERISA; or

            (g) the Source is an insurance company separate account maintained
      solely in connection with the fixed contractual obligations of the
      insurance company under which the amounts payable, or credited, to any
      employee benefit plan (or its related trust) and to any participant or
      beneficiary of such plan (including any annuitant) are not affected in any
      manner by the investment performance of the separate account.

As used in this SECTION 6.2, the terms "employee benefit plan", "governmental
plan", "party in interest" and "separate account" shall have the respective
meanings assigned to such terms in Section 3 of ERISA.

SECTION 7. INFORMATION AS TO THE PARENT CORPORATION.

      Section 7.1. Financial and Business Information. The Parent Corporation
shall deliver to each holder of Notes that is an Institutional Investor:

            (a) Quarterly Statements -- within 50 days after the end of each
      quarterly fiscal period in each fiscal year of the Parent Corporation
      (other than the last quarterly fiscal period of each such fiscal year),
      duplicate copies of:

                  (i) a consolidated balance sheet of the Parent Corporation and
            its Subsidiaries as at the end of such quarter, and

                  (ii) consolidated statements of earnings, changes in
            stockholders' equity and cash flows of the Parent Corporation and
            its Subsidiaries for such quarter and (in the case of the second and
            third quarters) for the portion of the fiscal year ending with such
            quarter,

setting forth in each case in comparative form the figures for the corresponding
periods in the previous fiscal year, all in reasonable detail, prepared in
accordance with GAAP applicable to quarterly financial statements generally, and
certified by a Senior Financial Officer as fairly presenting, in all material
respects, the financial position of the companies being reported on and

                                      -16-
<PAGE>
their results of operations and cash flows, subject to changes resulting from
year-end adjustments; provided that delivery within the time period specified
above of copies of the Parent Corporation's Quarterly Report on Form 10-Q
prepared in compliance with the requirements therefor and filed with the
Securities and Exchange Commission shall be deemed to satisfy the requirements
of this SECTION 7.1(A);

            (b) Annual Statements -- within 95 days after the end of each fiscal
      year of the Parent Corporation, duplicate copies of,

                  (i) a consolidated balance sheet of the Parent Corporation and
            its Subsidiaries, as at the end of such year, and

                  (ii) consolidated statements of earnings, changes in
            stockholders' equity and cash flows of the Parent Corporation and
            its Subsidiaries, for such year,

      setting forth in each case in comparative form the figures for the
      previous fiscal year, all in reasonable detail, prepared in accordance
      with GAAP, and accompanied by an opinion thereon of independent certified
      public accountants of recognized national standing, which opinion shall
      state that such financial statements present fairly, in all material
      respects, the financial position of the companies being reported upon and
      their results of operations and cash flows and have been prepared in
      conformity with GAAP, and that the examination of such accountants in
      connection with such financial statements has been made in accordance with
      generally accepted auditing standards, and that such audit provides a
      reasonable basis for such opinion in the circumstances, provided that the
      delivery within the time period specified above of the Parent
      Corporation's Annual Report on Form 10-K for such fiscal year (together
      with the Parent Corporation's annual report to shareholders, if any,
      prepared pursuant to Rule 14a-3 under the Exchange Act) prepared in
      accordance with the requirements therefor and filed with the Securities
      and Exchange Commission shall be deemed to satisfy the requirements of
      this SECTION 7.1(B);

            (c) SEC and Other Reports -- promptly upon their becoming available,
      one copy of (i) each financial statement, report, notice or proxy
      statement sent by the Parent Corporation or any Subsidiary to public
      securities holders generally, and (ii) each regular or periodic report,
      each registration statement (without exhibits except as expressly
      requested by such holder), and each prospectus and all amendments thereto
      filed by the Parent Corporation or any Subsidiary with any securities
      exchange or the Securities and Exchange Commission;

            (d) Notice of Default or Event of Default -- promptly, and in any
      event within five days after a Responsible Officer becoming aware of the
      existence of any Default or Event of Default or that any Person has given
      any notice or taken any action with respect to a claimed default hereunder
      or that any Person has given any notice or taken any action with respect
      to a claimed default of the type referred to in SECTION 12(F), a written
      notice specifying the nature and period of existence thereof and what
      action the Parent Corporation is taking or proposes to take with respect
      thereto;

                                      -17-
<PAGE>
            (e) ERISA Matters -- promptly, and in any event within five days
      after a Responsible Officer becoming aware of any of the following, a
      written notice setting forth the nature thereof and the action, if any,
      that the Parent Corporation or an ERISA Affiliate proposes to take with
      respect thereto:

                  (i) with respect to any Plan, any reportable event, as defined
            in Section 4043(c) of ERISA and the regulations thereunder, for
            which notice thereof has not been waived pursuant to such
            regulations as in effect on the date hereof; or

                  (ii) the taking by the PBGC of steps to institute, or the
            threatening by the PBGC of the institution of, proceedings under
            Section 4042 of ERISA for the termination of, or the appointment of
            a trustee to administer, any Plan, or the receipt by the Parent
            Corporation or any ERISA Affiliate of a notice from a Multiemployer
            Plan that such action has been taken by the PBGC with respect to
            such Multiemployer Plan; or

                  (iii) any event, transaction or condition that could result in
            the incurrence of any liability by the Parent Corporation or any
            ERISA Affiliate pursuant to Title I or IV of ERISA or the penalty or
            excise tax provisions of the Code relating to employee benefit
            plans, or in the imposition of any Lien on any of the rights,
            properties or assets of the Parent Corporation or any ERISA
            Affiliate pursuant to Title I or IV of ERISA or such penalty or
            excise tax provisions, if such liability or Lien, taken together
            with any other such liabilities or Liens then existing, could
            reasonably be expected to have a Material Adverse Effect;

            (f) Notices from Governmental Authority -- promptly, and in any
      event within 30 days of receipt thereof, copies of any notice to the
      Parent Corporation or any Subsidiary from any Federal or state
      Governmental Authority relating to any order, ruling, statute or other law
      or regulation that could reasonably be expected to have a Material Adverse
      Effect; and

            (g) Requested Information -- with reasonable promptness, such other
      data and information relating to the business, operations, affairs,
      financial condition, assets or properties of the Parent Corporation or any
      of its Subsidiaries or relating to the ability of the Parent Corporation
      or the Company to perform their respective obligations hereunder and under
      the Notes as from time to time may be reasonably requested by any such
      holder of Notes.

      Section 7.2. Officer's Certificate. Each set of financial statements
delivered to a holder of Notes pursuant to SECTION 7.1(A) or SECTION 7.1(B)
hereof shall be accompanied by a certificate of a Senior Financial Officer
setting forth:

            (a) Covenant Compliance -- the information (including detailed
      calculations) required in order to establish whether the Parent
      Corporation was in compliance with the requirements of SECTION 10.1
      through SECTION 10.6 hereof, inclusive, during the quarterly

                                      -18-
<PAGE>
      or annual period covered by the statements then being furnished (including
      with respect to each such SECTION, where applicable, the calculations of
      the maximum or minimum amount, ratio or percentage, as the case may be,
      permissible under the terms of such SECTIONS, and the calculation of the
      amount, ratio or percentage then in existence); and

            (b) Event of Default -- a statement that such officer has reviewed
      the relevant terms hereof and has made, or caused to be made, under his or
      her supervision, a review of the transactions and conditions of the Parent
      Corporation and its Subsidiaries from the beginning of the quarterly or
      annual period covered by the statements then being furnished to the date
      of the certificate and that such review shall not have disclosed the
      existence during such period of any condition or event that constitutes a
      Default or an Event of Default or, if any such condition or event existed
      or exists (including, without limitation, any such event or condition
      resulting from the failure of the Parent Corporation or any Subsidiary to
      comply with any Environmental Law), specifying the nature and period of
      existence thereof and what action the Parent Corporation shall have taken
      or proposes to take with respect thereto.

      Section 7.3. Inspection. The Parent Corporation and the Company shall
permit the representatives of each holder of Notes that is an Institutional
Investor:

            (a) No Default -- if no Default or Event of Default then exists, at
      the expense of such holder and upon reasonable prior notice to the Parent
      Corporation and the Company, to visit the principal executive office of
      the Parent Corporation and the Company, to discuss the affairs, finances
      and accounts of the Parent Corporation and its Subsidiaries with the
      Parent Corporation's and the Company's officers, and (with the consent of
      the Parent Corporation, which consent will not be unreasonably withheld)
      their independent public accountants, and (with the consent of the Parent
      Corporation, which consent will not be unreasonably withheld) to visit the
      other offices and properties of the Parent Corporation and each
      Subsidiary, all at such reasonable times and as often as may be reasonably
      requested in writing; and

            (b) Default -- if a Default or Event of Default then exists, at the
      expense of the Parent Corporation, to visit and inspect any of the offices
      or properties of the Parent Corporation or any Subsidiary, to examine all
      their respective books of account, records, reports and other papers, to
      make copies and extracts therefrom, and to discuss their respective
      affairs, finances and accounts with their respective officers and
      independent public accountants (and by this provision the Parent
      Corporation authorizes said accountants to discuss the affairs, finances
      and accounts of the Parent Corporation and its Subsidiaries), all at such
      times and as often as may be requested.

SECTION 8. PREPAYMENT OF THE NOTES.

      Section 8.1. Required Prepayments. The Company agrees that:

            (a) Series A Notes. There shall be no scheduled principal
      prepayments in respect of the Series A Notes. On June 27, 2008, the entire
      principal amount of the

                                      -19-
<PAGE>
      Series A Notes, together with accrued and unpaid interest thereon, shall
      become due and payable.

            (b) Series B Notes. There shall be no scheduled principal
      prepayments in respect of the Series B Notes. On June 27, 2010, the entire
      principal amount of the Series B Notes, together with accrued and unpaid
      interest thereon, shall become due and payable.

      Section 8.2. Optional Prepayments with Make-Whole Amount. The Company may,
at its option, upon notice as provided below, prepay at any time all, or from
time to time any part of, the Notes, in an amount not less than 10% of the
aggregate principal amount of the Notes then outstanding in the case of a
partial prepayment, at 100% of the principal amount so prepaid, together with
interest accrued thereon to the date of such prepayment, plus the Make-Whole
Amount determined for the prepayment date with respect to such principal amount.
The Company will give each holder of Notes written notice of each optional
prepayment under this SECTION 8.2 not less than 30 days and not more than 60
days prior to the date fixed for such prepayment. Each such notice shall specify
such date, the aggregate principal amount of the Notes to be prepaid on such
date, the principal amount of each Note held by such holder to be prepaid
(determined in accordance with SECTION 8.3), and the interest to be paid on the
prepayment date with respect to such principal amount being prepaid, and shall
be accompanied by a certificate of a Senior Financial Officer as to the
estimated Make-Whole Amount due in connection with such prepayment (calculated
as if the date of such notice were the date of the prepayment), setting forth
the details of such computation. Two Business Days prior to such prepayment, the
Company shall deliver to each holder of Notes a certificate of a Senior
Financial Officer specifying the calculation of such Make-Whole Amount as of the
specified prepayment date.

      Section 8.3. Allocation of Partial Prepayments. In the case of each
partial prepayment of the Notes pursuant to SECTION 8.2, the principal amount of
the Notes to be prepaid shall be allocated among all of the Notes at the time
outstanding in proportion, as nearly as practicable, to the respective unpaid
principal amounts thereof not theretofore called for prepayment.

      Section 8.4. Maturity; Surrender, Etc. In the case of each prepayment of
Notes pursuant to this SECTION 8, the principal amount of each Note to be
prepaid shall mature and become due and payable on the date fixed for such
prepayment, together with interest on such principal amount accrued to such date
and the applicable Make-Whole Amount, if any. From and after such date, unless
the Company shall fail to pay such principal amount when so due and payable,
together with the interest and Make-Whole Amount, if any, as aforesaid, interest
on such principal amount shall cease to accrue. Any Note paid or prepaid in full
shall be surrendered to the Company and cancelled and shall not be reissued, and
no Note shall be issued in lieu of any prepaid principal amount of any Note.

      Section 8.5. Purchase of Notes. The Company will not and will not permit
any Affiliate to purchase, redeem, prepay or otherwise acquire, directly or
indirectly, any of the outstanding Notes except upon the payment or prepayment
of the Notes in accordance with the terms of this Agreement and the Notes. The
Company will promptly cancel all Notes acquired by it or any

                                      -20-
<PAGE>
Affiliate pursuant to any payment, prepayment or purchase of Notes pursuant to
any provision of this Agreement and no Notes may be issued in substitution or
exchange for any such Notes.

      Section 8.6. Make-Whole Amount. The term "Make-Whole Amount" means, with
respect to any Note, an amount equal to the excess, if any, of the Discounted
Value of the Remaining Scheduled Payments with respect to the Called Principal
of such Note over the amount of such Called Principal; provided that the
Make-Whole Amount may in no event be less than zero. It is understood by the
parties that the determination of Reinvestment Yield, Remaining Average Life and
Remaining Scheduled Payments in respect of each Series of Notes will be
different and, accordingly, the Make-Whole Amount for each Series of Notes will
be different. For the purposes of determining the Make-Whole Amount, the
following terms have the following meanings:

            "Called Principal" means, with respect to any Note, the principal of
      such Note that is to be prepaid pursuant to SECTION 8.2 or has become or
      is declared to be immediately due and payable pursuant to SECTION 13.1, as
      the context requires.

            "Discounted Value" means, with respect to the Called Principal of
      any Note, the amount obtained by discounting all Remaining Scheduled
      Payments with respect to such Called Principal from their respective
      scheduled due dates to the Settlement Date with respect to such Called
      Principal, in accordance with accepted financial practice and at a
      discount factor (applied on the same periodic basis as that on which
      interest on such Note is payable) equal to the Reinvestment Yield with
      respect to such Called Principal.

            "Reinvestment Yield" means, with respect to the Called Principal of
      any Note, 0.50% per annum over the yield to maturity implied by (a) the
      yields reported, as of 10:00 A.M. (New York City time) on the second
      Business Day preceding the Settlement Date with respect to such Called
      Principal, on the display designated as "Page PX1" of the Bloomberg
      Financial Markets Services Screen (or, if not available, any other
      national recognized trading screen reporting on-line intraday trading in
      the U.S. Treasury securities) for actively traded U.S. Treasury securities
      having a maturity equal to the Remaining Average Life of such Called
      Principal as of such Settlement Date, or (b) if such yields are not
      reported as of such time or the yields reported as of such time are not
      ascertainable, the Treasury Constant Maturity Series Yields reported, for
      the latest day for which such yields have been so reported as of the
      second Business Day preceding the Settlement Date with respect to such
      Called Principal, in Federal Reserve Statistical Release H.15 (519) (or
      any comparable successor publication) for actively traded U.S. Treasury
      securities having a constant maturity equal to the Remaining Average Life
      of such Called Principal as of such Settlement Date. Such implied yield
      will be determined, if necessary, by (i) converting U.S. Treasury bill
      quotations to bond-equivalent yields in accordance with accepted financial
      practice and (ii) interpolating linearly between (1) the actively traded
      U.S. Treasury security with the term to maturity closest to and greater
      than the Remaining Average Life and (2) the actively traded U.S. Treasury
      security with the term to maturity closest to and less than the Remaining
      Average Life.

                                      -21-
<PAGE>
            "Remaining Average Life" means, with respect to any Called
      Principal, the number of years (calculated to the nearest one-twelfth
      year) obtained by dividing (a) such Called Principal into (b) the sum of
      the products obtained by multiplying (i) the principal component of each
      Remaining Scheduled Payment with respect to such Called Principal by (ii)
      the number of years (calculated to the nearest one-twelfth year) that will
      elapse between the Settlement Date with respect to such Called Principal
      and the scheduled due date of such Remaining Scheduled Payment.

            "Remaining Scheduled Payments" means, with respect to the Called
      Principal of any Note, all payments of such Called Principal and interest
      thereon that would be due after the Settlement Date with respect to such
      Called Principal if no payment of such Called Principal were made prior to
      its scheduled due date; provided that if such Settlement Date is not a
      date on which interest payments are due to be made under the terms of such
      Note, then the amount of the next succeeding scheduled interest payment
      will be reduced by the amount of interest accrued to such Settlement Date
      and required to be paid on such Settlement Date pursuant to SECTION 8.2 or
      13.1.

            "Settlement Date" means, with respect to the Called Principal of any
      Note, the date on which such Called Principal is to be prepaid pursuant to
      SECTION 8.2 or has become or is declared to be immediately due and payable
      pursuant to SECTION 13.1, as the context requires.

SECTION 9. AFFIRMATIVE COVENANTS.

      Section 9.1. Affirmative Covenants of the Parent Corporation. The Parent
Corporation covenants that so long as any of the Notes are outstanding:

      Section 9.1.1. Compliance with Law. The Parent Corporation will, and will
cause each of its Subsidiaries to, comply with all laws, ordinances or
governmental rules or regulations to which each of them is subject, including,
without limitation, ERISA and applicable laws in respect of Non-U.S. Pension
Plans and all Environmental Laws, and will obtain and maintain in effect all
licenses, certificates, permits, franchises and other governmental
authorizations necessary to the ownership of their respective properties or to
the conduct of their respective businesses, in each case to the extent necessary
to ensure that non-compliance with such laws, ordinances or governmental rules
or regulations or failures to obtain or maintain in effect such licenses,
certificates, permits, franchises and other governmental authorizations could
not, individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect.

      Section 9.1.2. Insurance. The Parent Corporation will, and will cause each
of its Subsidiaries to, maintain, with financially sound and reputable insurers,
insurance with respect to their respective properties and businesses against
such casualties and contingencies, of such types, on such terms and in such
amounts (including deductibles, co-insurance and self-insurance, if adequate
reserves are maintained with respect thereto) as is customary in the case of
entities of established reputations engaged in the same or a similar business
and similarly situated.

                                      -22-
<PAGE>
      Section 9.1.3. Maintenance of Properties. The Parent Corporation will, and
will cause each of its Subsidiaries to, maintain and keep, or cause to be
maintained and kept, their respective properties in good repair, working order
and condition (other than ordinary wear and tear), so that the business carried
on in connection therewith may be properly conducted at all times; provided that
this SECTION 9.1.3 shall not prevent the Parent Corporation or any Subsidiary
from discontinuing the operation and the maintenance of any of its properties if
such discontinuance is desirable in the conduct of its business and the Parent
Corporation has concluded that such discontinuance could not, individually or in
the aggregate, reasonably be expected to have a Material Adverse Effect.

      Section 9.1.4. Payment of Taxes and Claims. The Parent Corporation will,
and will cause each of its Subsidiaries to, file all tax returns required to be
filed in any jurisdiction and to pay and discharge all taxes shown to be due and
payable on such returns and all other taxes, assessments, governmental charges,
or levies imposed on them or any of their properties, assets, income or
franchises, to the extent such taxes, assessments, charges and levies have
become due and payable and before they have become delinquent and all claims for
which sums have become due and payable that have or might become a Lien on
properties or assets of the Parent Corporation or any Subsidiary; provided that
neither the Parent Corporation nor any Subsidiary need pay any such tax,
assessment, charge, levy or claim if (a) the amount, applicability or validity
thereof is contested by the Parent Corporation or such Subsidiary on a timely
basis in good faith and in appropriate proceedings, and the Parent Corporation
or a Subsidiary has established adequate reserves therefor in accordance with
GAAP on the books of the Parent Corporation or such Subsidiary or (b) the
nonpayment of all such taxes, assessments, charges, levies and claims in the
aggregate could not reasonably be expected to have a Material Adverse Effect.

      Section 9.1.5. Corporate Existence, Etc. Subject to SECTION 10.6, the
Parent Corporation will at all times preserve and keep in full force and effect
its corporate existence and will at all times preserve and keep in full force
and effect the corporate existence of each of its Subsidiaries (unless merged
into the Parent Corporation or a Wholly-owned Subsidiary) and all rights and
franchises of the Parent Corporation and its Subsidiaries unless, in the good
faith judgment of the Parent Corporation, the termination of or failure to
preserve and keep in full force and effect such corporate existence, right or
franchise could not, individually or in the aggregate, have a Material Adverse
Effect.

      Section 9.1.6. [Reserved.]

      Section 9.1.7. Parent Guaranty to Rank Pari Passu. The obligations of the
Parent Corporation under and in respect of the Parent Guaranty are and at all
times shall remain a direct and unsecured obligation of the Parent Corporation
ranking pari passu as against the assets of the Parent Corporation with all
other present and future unsecured Debt (actual or contingent) of the Parent
Corporation which is not expressed to be subordinate or junior in rank to any
other unsecured Debt of the Parent Corporation.

                                      -23-

<PAGE>
       Section 9.1.8. Guaranty by Additional Constituent Company Guarantors. The
Parent Corporation will cause each Constituent Company which delivers a Guaranty
to any Person in respect of any Debt of the Parent Corporation or of the Company
outstanding under the Credit Agreement (or under any credit facility or other
Debt instrument replacing all or part thereof) to concurrently enter into a
Constituent Company Guaranty, and within five Business Days thereafter shall
deliver to each of the holders of the Notes the following items:

                     (a) an executed counterpart of such Constituent Company
              Guaranty or joinder agreement in respect of an existing
              Constituent Company Guaranty, as appropriate;

                     (b) a certificate signed by the President, a Vice President
              or another authorized Responsible Officer of such Constituent
              Company making representations and warranties to the effect of
              those contained in SECTIONS 5.1.1, 5.1.2, 5.1.6 and 5.1.7, but
              with respect to such Constituent Company and such Constituent
              Company Guaranty, as applicable;

                     (c) such documents and evidence with respect to such
              Constituent Company as any holder of the Notes may reasonably
              request in order to establish the existence and good standing of
              such Constituent Company and the authorization of the transactions
              contemplated by such Constituent Company Guaranty; and

                     (d) an opinion of counsel satisfactory to the Required
              Holders to the effect that such Constituent Company Guaranty has
              been duly authorized, executed and delivered and constitutes the
              legal, valid and binding contract and agreement of such
              Constituent Company enforceable in accordance with its terms,
              except as an enforcement of such terms may be limited by
              bankruptcy, insolvency, reorganization, moratorium and similar
              laws affecting the enforcement of creditors' rights generally and
              by general equitable principles.

       Section 9.1.9. Ownership. Subject to SECTION 10.6(A), the Parent
Corporation shall at all times own, directly or indirectly, 100% of the issued
and outstanding stock of the Company.

      Section 9.1.10. Agreement to Seek Amendments. The Parent Corporation
agrees that, on or before November 15, 2005, it shall use its best efforts to
effect an amendment to the Credit Agreement and the Guaranties issued in
connection therewith, or it shall enter into a renewal or replacement of the
Credit Agreement and such Guaranties, which amendment, renewal or replacement
eliminates any obligation on the part of the Parent Corporation or any
Subsidiary to pay-over to the lenders under the Credit Agreement intercompany
advances in preference to payments due to the holders of the Notes under the
Notes and the other Note Documents.

       Section 9.2. Affirmative Covenants of the Company. The Company covenants
that so long as any of the Notes are outstanding:

       Section 9.2.1. Compliance with Law. The Company will, and will cause each
of its Subsidiaries to, comply with all laws, ordinances or governmental rules
or regulations to which each of them is subject, including, without limitation,
ERISA and applicable laws in respect of

                                      -24-
<PAGE>
Non-U.S. Pension Plans and all Environmental Laws, and will obtain and maintain
in effect all licenses, certificates, permits, franchises and other governmental
authorizations necessary to the ownership of their respective properties or to
the conduct of their respective businesses, in each case to the extent necessary
to ensure that non-compliance with such laws, ordinances or governmental rules
or regulations or failures to obtain or maintain in effect such licenses,
certificates, permits, franchises and other governmental authorizations could
not, individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect.

       Section 9.2.2. Insurance. The Company will, and will cause each of its
Subsidiaries to, maintain, with financially sound and reputable insurers,
insurance with respect to their respective properties and businesses against
such casualties and contingencies, of such types, on such terms and in such
amounts (including deductibles, co-insurance and self-insurance, if adequate
reserves are maintained with respect thereto) as is customary in the case of
entities of established reputations engaged in the same or a similar business
and similarly situated.

       Section 9.2.3. Maintenance of Properties. The Company will, and will
cause each of its Subsidiaries to, maintain and keep, or cause to be maintained
and kept, their respective properties in good repair, working order and
condition (other than ordinary wear and tear), so that the business carried on
in connection therewith may be properly conducted at all times; provided that
this SECTION 9.2.3 shall not prevent the Company or any Subsidiary from
discontinuing the operation and the maintenance of any of its properties if such
discontinuance is desirable in the conduct of its business and the Company has
concluded that such discontinuance could not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect.

       Section 9.2.4. Payment of Taxes and Claims. The Company will, and will
cause each of its Subsidiaries to, file all tax returns required to be filed in
any jurisdiction and to pay and discharge all taxes shown to be due and payable
on such returns and all other taxes, assessments, governmental charges, or
levies imposed on them or any of their properties, assets, income or franchises,
to the extent such taxes, assessments, charges and levies have become due and
payable and before they have become delinquent and all claims for which sums
have become due and payable that have or might become a Lien on properties or
assets of the Company or any Subsidiary; provided that neither the Company nor
any Subsidiary need pay any such tax, assessment, charge, levy or claim if (a)
the amount, applicability or validity thereof is contested by the Company or
such Subsidiary on a timely basis in good faith and in appropriate proceedings,
and the Company or a Subsidiary has established adequate reserves therefor in
accordance with GAAP on the books of the Company or such Subsidiary or (b) the
nonpayment of all such taxes, assessments, charges, levies, and claims in the
aggregate could not reasonably be expected to have a Material Adverse Effect.

       Section 9.2.5. Corporate Existence, Etc. The Company will at all times
preserve and keep in full force and effect its corporate existence. Subject to
SECTION 10.6, the Company will at all times preserve and keep in full force and
effect the corporate existence of each of its Subsidiaries (unless merged into
the Company or a Subsidiary) and all rights and franchises of the Company and
its Subsidiaries unless, in the good faith judgment of the Company, the
termination of or

                                      -25-
<PAGE>
failure to preserve and keep in full force and effect such corporate existence,
right or franchise could not, individually or in the aggregate, have a Material
Adverse Effect.

       Section 9.2.6. Notes to Rank Pari Passu. The Notes and all other
obligations under this Agreement of the Company are and at all times shall
remain direct and unsecured obligations of the Company ranking pari passu as
against the assets of the Company with all other Notes from time to time issued
and outstanding hereunder without any preference among themselves and pari passu
with all other present and future unsecured Debt (actual or contingent) of the
Company which is not expressed to be subordinate or junior in rank to any other
unsecured Debt of the Company.

SECTION 10. NEGATIVE COVENANTS.

       The Parent Corporation covenants that so long as any of the Notes are
outstanding:

       Section 10.1. Consolidated Total Debt. The Parent Corporation will not at
any time permit Consolidated Total Debt to exceed 55% of Consolidated Total
Capitalization determined as of the last day of the immediately preceding fiscal
quarter.

       Section 10.2. Priority Debt. The Parent Corporation will not at any time
permit Priority Debt to exceed 25% of Consolidated Tangible Net Worth determined
as of the last day of the immediately preceding fiscal quarter.

       Section 10.3. Fixed Charges Coverage Ratio. The Parent Corporation will
not, as of the last day of any fiscal quarter, permit the ratio of (a)
Consolidated EBITDAR for the period consisting of the four consecutive fiscal
quarters ending on such date to (b) Consolidated Fixed Charges for such period
to be less than 1.50 to 1.0.

       Section 10.4. Consolidated Tangible Net Worth. The Parent Corporation
will at all times keep and maintain Consolidated Tangible Net Worth at an amount
not less than the sum of (a) $600,000,000, plus (b) an aggregate amount equal to
50% of Consolidated Net Income (but, in each case, only if a positive number)
for each completed fiscal quarter commencing with the fiscal quarter ending June
30, 2003, plus (c) 100% of the amount by which "total stockholders' equity" of
the Parent Corporation is increased as a result of any public or private
offering of common stock of the Parent Corporation after the date of Closing.

       Section 10.5. Limitation on Liens. The Parent Corporation will not, and
will not permit any Subsidiary to, create or incur, or suffer to be incurred or
to exist, any Lien on its or their property or assets (including, without
limitation, Intercompany Obligations and instruments evidencing the same),
whether now owned or hereafter acquired, or upon any income or profits
therefrom, or transfer any property for the purpose of subjecting the same to
the payment of obligations in priority to the payment of its or their general
creditors, or acquire or agree to acquire, or permit any Subsidiary to acquire,
any property or assets upon conditional sales agreements or other title
retention devices, except:

                                      -26-
<PAGE>
                     (a) Liens for taxes and assessments or governmental charges
              or levies and Liens securing claims or demands of mechanics,
              workmen, carriers and materialmen; provided that payment thereof
              is not at the time required by SECTION 9.1.4 or SECTION 9.2.4;

                     (b) Liens of or resulting from any judgment or award, the
              time for the appeal or petition for rehearing of which shall not
              have expired, or in respect of which the Parent Corporation or a
              Subsidiary shall at all times in good faith be prosecuting an
              appeal or proceeding for a review and in respect of which a stay
              of execution pending such appeal or proceeding for review shall
              have been secured;

                     (c) Liens incidental to the conduct of business or the
              ownership of properties and assets (including Liens in connection
              with worker's compensation, unemployment insurance, social
              security and other like laws, warehousemen's and attorneys' liens
              and statutory landlords' liens), Liens to secure the performance
              of bids, tenders or trade contracts, or to secure statutory
              obligations, surety or appeal bonds (including pledges, deposits
              and other security arrangements, together with related letters of
              credit and performance and indemnity bonds) or other Liens of like
              general nature, and the retained interest of landlords in
              connection with property leased by the Parent Corporation or any
              of its Subsidiaries, in any such case incurred in the ordinary
              course of business and not in connection with the borrowing of
              money; provided in each case, the obligation secured is not
              overdue or, if overdue, is being contested in good faith by
              appropriate actions or proceedings;

                     (d) minor survey exceptions or minor encumbrances,
              easements or reservations, or rights of others for rights-of-way,
              utilities and other similar purposes, or zoning or other
              restrictions as to the use of real properties, which are necessary
              for the conduct of the activities of the Parent Corporation and
              its Subsidiaries or which customarily exist on properties of
              corporations engaged in similar activities and similarly situated
              and which do not in any event materially impair their use in the
              operation of the business of the Parent Corporation and its
              Subsidiaries, taken as a whole;

                     (e) Liens attaching to Receivables sold or pledged by the
              Parent Corporation or a Subsidiary in connection with any
              Securitization Transaction, provided that the Debt incurred in
              connection with such Securitization Transaction shall be permitted
              within the applicable provisions of this Agreement (including,
              without limitation, under SECTIONS 10.1 and 10.2 hereof);

                     (f) Liens existing as of the date of the Closing and
              described on SCHEDULE 5.1.15 hereto;

                     (g) Liens created or incurred after the date of the Closing
              given to secure the payment of the purchase price incurred in
              connection with the acquisition or purchase or the cost of
              construction of property or of assets useful and intended to be
              used in carrying on the business of the Parent Corporation or a
              Subsidiary, whether or not such existing Liens were given to
              secure the payment of the acquisition or purchase price or cost of

                                      -27-
<PAGE>
              construction, as the case may be, of the property or assets to
              which they attach; provided that (i) the Lien shall attach solely
              to the property or assets acquired, purchased or constructed, (ii)
              such Lien shall have been created or incurred within 90 days of
              the date of acquisition or purchase or completion of construction,
              as the case may be, (iii) at the time of acquisition or purchase
              or of completion of construction of such property or assets, the
              aggregate amount remaining unpaid on all Debt secured by Liens on
              such property or assets, whether or not assumed by the Parent
              Corporation or a Subsidiary, shall not exceed an amount equal to
              the lesser of the total purchase price or fair market value at the
              time of acquisition or purchase (as determined in good faith by
              the Board of Directors of the Parent Corporation) or the cost of
              construction on the date of completion thereof, and (iv) at the
              time of creation, issuance, assumption, guarantee or incurrence of
              the Debt secured by such Lien and after giving effect thereto and
              to the application of the proceeds thereof, no Default or Event of
              Default would exist (including, without limitation, under SECTIONS
              10.1 and 10.2 hereof);

                     (h) any Lien existing on property or assets of a
              corporation at the time such corporation is consolidated with or
              merged into the Parent Corporation or a Subsidiary or its becoming
              a Subsidiary, or any Lien existing on any property or assets
              acquired by the Parent Corporation or any Subsidiary at the time
              such property or assets are so acquired (whether or not the Debt
              secured thereby shall have been assumed), provided that (i) each
              such Lien shall extend solely to the property or assets so
              acquired, (ii) no such Lien shall have been created or assumed in
              contemplation of such consolidation or merger or such Person's
              becoming a Subsidiary or such acquisition of property and (iii) at
              the time of creation, issuance, assumption, guarantee or
              incurrence of the Debt secured by such Lien and after giving
              effect thereto and to the application of the proceeds thereof, no
              Default or Event of Default would exist (including, without
              limitation, under SECTIONS 10.1 and 10.2 hereof);

                     (i) any extension, renewal or refunding of any Lien
              permitted by the preceding clauses (f), (g) or (h) of this SECTION
              10.5 in respect of the same property theretofore subject to such
              Lien in connection with the extension, renewal or refunding of the
              Debt secured thereby; provided that (i) such extension, renewal or
              refunding of Debt shall be without increase in the principal
              amount remaining unpaid as of the date of such extension, renewal
              or refunding, (ii) such Lien shall attach solely to the same such
              property, and (iii) at the time of such extension, renewal or
              refunding and after giving effect thereto, no Default or Event of
              Default would exist (including, without limitation, under SECTIONS
              10.1 and 10.2 hereof); and

                     (j) Liens created or incurred after the date of the Closing
              given to secure Debt of the Parent Corporation or any Subsidiary
              in addition to the Liens permitted by the preceding clauses (a)
              through (i) hereof; provided that at the time of creation,
              issuance, assumption, guarantee or incurrence of the Debt secured
              by such Lien and after giving effect thereto and to the
              application of the proceeds thereof, no Default or Event of
              Default would exist (including, without limitation, under SECTIONS
              10.1 and 10.2 hereof).

                                      -28-
<PAGE>
For the purposes of this SECTION 10.5, any Person becoming a Subsidiary after
the date of this Agreement shall be deemed to have incurred all of its then
outstanding Liens at the time it becomes a Subsidiary, and any Person extending,
renewing or refunding any Debt secured by any Lien shall be deemed to have
incurred such Lien at the time of such extension, renewal or refunding.

        Section 10.6. Mergers, Consolidations and Sales of Assets. (a) The
Parent Corporation will not, and will not permit any Subsidiary to, consolidate
with or be a party to a merger with any other Person, or sell, lease or
otherwise dispose of all or substantially all of its assets; provided that:

              (i) any Subsidiary may consolidate or merge with or into the
       Parent Corporation or any Wholly-owned Subsidiary so long as:

                     (1) in any consolidation or merger involving the Parent
              Corporation, the Parent Corporation shall be the surviving or
              continuing corporation and, if such consolidation or merger
              involves the Company, the due and punctual performance and
              observation of all of the covenants in this Agreement and the
              Notes to be performed or observed by the Company are expressly
              assumed in writing by the Parent Corporation (pursuant to such
              agreements and instruments as shall be reasonably satisfactory to
              the Required Holders) and the Parent Corporation shall furnish to
              the holders of the Notes an opinion of counsel satisfactory to
              such holders to the effect that the instrument of assumption has
              been duly authorized, executed and delivered and constitutes the
              legal, valid and binding contract and agreement of the Parent
              Corporation enforceable in accordance with its terms;

                     (2) in any consolidation or merger involving the Company
              (and not the Parent Corporation), the Company shall be the
              surviving or continuing corporation;

                     (3) in any consolidation or merger involving a Constituent
              Company Guarantor (and not the Parent Corporation or the Company),
              the Constituent Company Guarantor shall be the surviving or
              continuing corporation;

                     (4) in any consolidation or merger involving a Wholly-owned
              Subsidiary (and not the Parent Corporation, the Company or a
              Constituent Company Guarantor), the Wholly-owned Subsidiary shall
              be the surviving or continuing corporation, provided that, in the
              case of a consolidation or merger involving a Wholly-owned
              Subsidiary created solely for the purpose of effecting the
              acquisition of an entity with no more than a de minimus capital
              contribution from the Parent Corporation or another Subsidiary,
              the survivor of the merger of such Wholly-owned Subsidiary and
              target entity shall be a Subsidiary; and

                     (5) in each case, each of the Guarantors shall confirm in
              writing its respective obligations under the Note Documents to
              which it is a party and

                                      -29-
<PAGE>
              immediately prior and after giving effect to such consolidation or
              merger, no Default or Event of Default would exist;

              (ii) the Parent Corporation may consolidate or merge with or into
       any other corporation if (1) the corporation which results from such
       consolidation or merger (the "surviving corporation") is a Solvent
       corporation organized under the laws of any state of the United States or
       the District of Columbia, (2) the due and punctual performance and
       observation of all of the covenants in this Agreement to be performed or
       observed by the Parent Corporation are expressly assumed in writing by
       the surviving corporation (pursuant to such agreements and instruments of
       assumption as shall be reasonably satisfactory to the Required Holders)
       and the surviving corporation shall furnish to the holders of the Notes
       an opinion of counsel satisfactory to such holders to the effect that the
       instrument of assumption has been duly authorized, executed and delivered
       and constitutes the legal, valid and binding contract and agreement of
       the surviving corporation enforceable in accordance with its terms, and
       (3) immediately prior and after giving effect to such consolidation or
       merger, no Default or Event of Default would exist;

              (iii) the Parent Corporation may sell or otherwise dispose of all
       or substantially all of its assets (other than Subsidiary Stock and Debt
       of Subsidiaries which may only be sold or otherwise disposed of in
       compliance with SECTION 10.6(C)) to any Person for consideration which
       represents the fair market value of such assets (as determined in good
       faith by the Board of Directors of the Parent Corporation) at the time of
       such sale or other disposition if (1) the acquiring Person is a Solvent
       corporation organized under the laws of any state of the United States or
       the District of Columbia, (2) the due and punctual performance and
       observance of all of the covenants in this Agreement to be performed or
       observed by the Parent Corporation are expressly assumed in writing by
       the acquiring corporation (pursuant to such agreements and instruments of
       assumption as shall be reasonably satisfactory to the Required Holders)
       and the acquiring corporation shall furnish to the holders of the Notes
       an opinion of counsel satisfactory to such holders to the effect that the
       instrument of assumption has been duly authorized, executed and delivered
       and constitutes the legal, valid and binding contract and agreement of
       such acquiring corporation enforceable in accordance with its terms,
       except as enforcement of such terms may be limited by bankruptcy,
       insolvency, reorganization, moratorium and similar laws affecting the
       enforcement of creditors' rights generally and by general equitable
       principles, (3) the Parent Corporation and each Constituent Company
       Guarantor confirms in writing its obligations under this Agreement and
       the Constituent Company Guaranty, respectively, and (4) immediately prior
       and after giving effect to such sale or disposition, no Default or Event
       of Default would exist;

              (iv) the Company may sell or otherwise dispose of all or
       substantially all of its assets (other than Subsidiary Stock and Debt of
       its Subsidiaries which may only be sold or otherwise disposed of in
       compliance with SECTION 10.6(C)) to any Person for consideration which
       represents the fair market value of such assets (as determined in good
       faith by the Board of Directors of the Parent Corporation) at the time of
       such sale or other disposition if (1) the acquiring Person is a Solvent
       corporation organized under the laws of any state of the United States or
       the District of Columbia, (2) the due and

                                      -30-
<PAGE>
       punctual performance and observance of all of the covenants in this
       Agreement and in the Notes to be performed or observed by the Company are
       expressly assumed in writing by the acquiring corporation (pursuant to
       such agreements and instruments of assumption as shall be reasonably
       satisfactory to the Required Holders) and the acquiring corporation shall
       furnish to the holders of the Notes an opinion of counsel satisfactory to
       such holders to the effect that the instrument of assumption has been
       duly authorized, executed and delivered and constitutes the legal, valid
       and binding contract and agreement of such acquiring corporation
       enforceable in accordance with its terms, except as enforcement of such
       terms may be limited by bankruptcy, insolvency, reorganization,
       moratorium and similar laws affecting the enforcement of creditors'
       rights generally and by general equitable principles, and (3) immediately
       prior and after giving effect to such sale or disposition, no Default or
       Event of Default would exist; and

              (v) any Subsidiary (other than the Company) may transfer or lease
       all or substantially all of its assets in compliance with the provisions
       of SECTION 10.6(B).

       (b) The Parent Corporation will not, and will not permit any Subsidiary
to, sell, lease, transfer, abandon or otherwise dispose of assets; provided that
the foregoing restrictions do not apply to:

              (i) assets sold, leased or transferred in the ordinary course of
       business for fair market value, including such sale or other disposition
       of obsolete or worn out property not necessary for operations; or

              (ii) the sale, lease, transfer or other disposition of
       substantially all of the assets of the Parent Corporation or the Company
       as an entirety as provided in SECTION 10.6(A)(III) or SECTION
       10.6(A)(IV), respectively; or

              (iii) the sale, lease, transfer or other disposition of assets of
       a Subsidiary to the Parent Corporation or a Wholly-owned Subsidiary; or

              (iv) the sale or transfer of Receivables pursuant to one or more
       Securitization Transactions, provided that at the time of such sale of
       Receivables and after giving effect thereto, no Default or Event of
       Default shall have occurred and be continuing; or

              (v) the sale of assets for cash or other property to a Person or
       Persons other than an Affiliate if all of the following conditions are
       met:

                     (1) such assets (valued at net book value) do not, together
              with all other assets of the Parent Corporation and its
              Subsidiaries previously disposed of during the immediately
              preceding 12 months (other than in the ordinary course of
              business), exceed 15% of Consolidated Total Assets determined as
              of the end of the immediately preceding fiscal year; and

                                      -31-
<PAGE>
                     (2) in the opinion of the Parent Corporation's Board of
              Directors, the sale is for fair market value and is in the best
              interests of the Parent Corporation and its Subsidiaries; and

                     (3) in the event such assets are Subsidiary Stock or Debt
              of a Subsidiary, such sale shall comply with the requirements of
              SECTION 10.6(C); and

                     (4) immediately prior and after the consummation of the
              transaction and after giving effect thereto, no Default or Event
              of Default would exist;

         provided, however, that for purposes of the foregoing calculation,
         there shall not be included any assets the proceeds of which were or
         are applied within 365 days of the date of sale of such assets to the
         acquisition of assets of a similar nature and useful and intended to be
         used in the operation of the business of the Parent Corporation and its
         Subsidiaries as described in SECTION 10.10 and having a fair market
         value at least equal to that of the assets so disposed of.

         (c) Subject in all events to SECTION 9.1.9, the Parent Corporation will
not sell, transfer or otherwise dispose of any Subsidiary Stock of a Subsidiary
(except to qualify directors or in connection with a consolidation or merger
permitted under SECTION 10.6(A)(I)) or any Debt of any Subsidiary, and will not
permit any Subsidiary to sell, transfer or otherwise dispose of any Subsidiary
Stock or Debt of any Subsidiary (other than to the Parent Corporation or a
Wholly-owned Subsidiary), unless:

              (i) simultaneously with such sale, transfer or disposition, all
       shares of Subsidiary Stock and all Debt of such Subsidiary at the time
       owned by the Parent Corporation and by every other Subsidiary shall be
       sold, transferred or disposed of as an entirety;

              (ii) the Board of Directors of the Parent Corporation shall have
       determined, as evidenced by a resolution thereof, that the proposed sale,
       transfer or disposition of said shares of Subsidiary Stock and Debt is in
       the best interest of the Parent Corporation;

              (iii) said shares of Subsidiary Stock and Debt are sold,
       transferred or otherwise disposed of to a Person on terms reasonably
       deemed by the Board of Directors of the Parent Corporation to be adequate
       and satisfactory;

              (iv) the Subsidiary being disposed of shall not have any
       continuing investment in the Parent Corporation or any other Subsidiary
       not being simultaneously disposed of; and

              (v) such sale, transfer or other disposition shall be treated as a
       disposition under and shall satisfy the requirements of SECTION 10.6(B)
       hereof.

                                      -32-
<PAGE>
       (d) The Parent Corporation will not permit any Subsidiary to issue any
Subsidiary Stock of such Subsidiary to any Person other than the Parent
Corporation or a Wholly-owned Subsidiary except to qualify directors.

       Section 10.7. Transactions with Affiliates. The Parent Corporation will
not and will not permit any Subsidiary to enter into directly or indirectly any
Material transaction or Material group of related transactions (including
without limitation the purchase, lease, sale or exchange of properties of any
kind or the rendering of any service) with any Affiliate (other than the Parent
Corporation or another Subsidiary), except (x) in the ordinary course and
pursuant to the reasonable requirements of the Parent Corporation's or such
Subsidiary's business and upon fair and reasonable terms no less favorable to
the Parent Corporation or such Subsidiary than would be obtainable in a
comparable arm's-length transaction with a Person not an Affiliate or (y)
transactions approved by a majority of the independent directors (as such term
is defined by the Exchange Act and the Rules and Regulations of the Nasdaq Stock
Market as in effect from time to time) of the Parent Corporation.

       Section 10.8. Restrictive Agreements. The Parent Corporation will not,
and will not permit any of its Subsidiaries to, directly or indirectly, enter
into, incur or permit to exist any agreement or other arrangement that
prohibits, restricts or imposes any condition upon the ability of any Subsidiary
to pay dividends or other distributions with respect to any shares of its
capital stock or to make or repay loans or advances to the Parent Corporation,
the Company or any other Subsidiary or to guaranty Debt of the Parent
Corporation, the Company or any other Subsidiary; or to transfer any of its
property or assets to the Parent Corporation, the Company or any other
Subsidiary, provided that the foregoing shall not apply to (i) restrictions and
conditions imposed by law or by this Agreement or any other Note Document, (ii)
the restrictions and conditions in the Credit Agreement as in effect on the date
of Closing (but shall apply to any amendment or modification expanding the scope
of, any such restriction or condition), and (iii) customary restrictions and
conditions contained in agreements relating to the sale of a Subsidiary or any
asset pending such sale, provided such restrictions and conditions apply only to
the Subsidiary or asset that is to be sold and such sale is permitted hereunder.

       Section 10.9. Changes to Jurisdiction of Incorporation, Fiscal Year. The
Parent Corporation shall not, and shall not permit the Company, to change its
jurisdiction of incorporation as exists on the date of Closing. At all times,
the Parent Corporation and the Company shall have the same fiscal year end.

       Section 10.10. Nature of Business. Neither the Parent Corporation nor any
Subsidiary will engage in any business if, as a result, the general nature of
the business, taken on a consolidated basis, which would then be engaged in by
the Parent Corporation and its Subsidiaries would be substantially changed from
the general nature of the business engaged in by the Parent Corporation and its
Subsidiaries on the date of this Agreement.

SECTION 11. PARENT GUARANTY.

       Section 11.1. Parent Guaranty. The Parent Corporation hereby absolutely
and unconditionally guarantees to the holders from time to time of the Notes:
(a) the full and prompt

                                      -33-
<PAGE>
payment of the principal of all of the Notes and of the interest thereon at the
rate therein stipulated and the Make-Whole Amount (if any), when and as the same
shall become due and payable, whether by lapse of time, upon redemption or
prepayment, by extension or by acceleration or declaration, or otherwise
(including (to the extent legally enforceable) interest due on overdue payments
of principal, Make-Whole Amount (if any) or interest at the rate set forth in
the Notes), (b) the full and prompt performance and observance by the Company of
each and all of the obligations, covenants and agreements required to be
performed or observed by the Company under the terms of the Notes and this
Agreement, and (c) the full and prompt payment, upon demand by any holder of the
Notes, of all costs and expenses, legal or otherwise (including attorneys' fees)
and such expenses, if any, as shall have been expended or incurred in the
protection or enforcement of any right or privilege under the Notes or this
Agreement, including, without limitation, in any consultation or action in
connection therewith, and in each and every case irrespective of the validity,
regularity, or enforcement of any of the Notes or this Agreement or any of the
terms thereof or of any other like circumstance or circumstances. The guaranty
of the Notes herein provided for is a guaranty of the immediate and timely
payment of the principal and interest on the Notes and the Make-Whole Amount (if
any) as and when the same are due and payable and shall not be deemed to be a
guaranty only of the collectibility of such payments and that in consequence
thereof each holder of the Notes may sue the Parent Corporation directly upon
such principal, interest and Make-Whole Amount (if any) becoming so due and
payable.

       Section 11.2. Obligations Absolute and Unconditional. The obligations of
the Parent Corporation under this Agreement shall be absolute and unconditional
and shall remain in full force and effect until the entire principal, interest
and Make-Whole Amount (if any) on the Notes and all other sums due pursuant to
SECTION 11.1 shall have been paid and such obligations shall not be affected,
modified or impaired upon the happening from time to time of any event,
including, without limitation, any of the following, whether or not with notice
to or the consent of the Parent Corporation:

              (a) the power or authority or the lack of power or authority of
       the Company to issue the Notes or to execute and deliver this Agreement,
       and irrespective of the validity of the Notes or this Agreement or of any
       defense whatsoever that the Company or any Constituent Company Guarantor
       may or might have to the payment of the Notes (principal, interest and
       Make-Whole Amount, if any) or to the performance or observance of any of
       the provisions or conditions of this Agreement, or the existence or
       continuance of the Company or any Constituent Company Guarantor as a
       legal entity;

              (b) any failure to present the Notes for payment or to demand
       payment thereof, or to give the Company, the Parent Corporation or any
       Constituent Company Guarantor notice of dishonor for non-payment of the
       Notes, when and as the same may become due and payable, or notice of any
       failure on the part of the Company to do any act or thing or to perform
       or to keep any covenant or agreement by it to be done, kept or performed
       under the terms of the Notes or this Agreement;

              (c) the acceptance of any security or any guaranty, the advance of
       additional money to the Company, any extension of the obligation of the
       Notes, either indefinitely or for any period of time, or any other
       modification in the obligation of the Notes, of this

                                      -34-
<PAGE>
       Agreement or the Constituent Company Guaranty or of the Company thereon,
       or in connection therewith, or any sale, release, substitution or
       exchange of any security;

              (d) any act or failure to act with regard to the Notes or this
       Agreement or anything which might vary the risk of the Company, the
       Parent Corporation or any Constituent Company Guarantor;

              (e) any action taken under this Agreement in the exercise of any
       right or power thereby conferred or any failure or omission on the part
       of any holder of any Note to first enforce any right or security given
       under this Agreement or any failure or omission on the part of any holder
       of any of the Notes to first enforce any right against the Company or any
       Constituent Company Guarantor;

              (f) the waiver, compromise, settlement, release or termination of
       any or all of the obligations, covenants or agreements of the Company or
       any Constituent Company Guarantor contained in this Agreement or the
       Constituent Company Guaranty or of the payment, performance or observance
       thereof;

              (g) the failure to give notice to the Company, the Parent
       Corporation or any Constituent Company Guarantor of the occurrence of any
       Default or Event of Default under the terms and provisions of this
       Agreement;

              (h) the extension of the time for payment of any principal of, or
       interest (or Make-Whole Amount, if any), on any Note owing or payable on
       such Note or of the time of or for performance of any obligations,
       covenants or agreements under or arising out of this Agreement or the
       Constituent Company Guaranty, or the extension or the renewal of any
       thereof;

              (i) the modification or amendment (whether material or otherwise)
       of any obligation, covenant or agreement set forth in this Agreement, the
       Notes or the Constituent Company Guaranty;

              (j) any failure, omission, delay or lack on the part of the
       holders of the Notes to enforce, assert or exercise any right, power or
       remedy conferred on the holders of the Notes in this Agreement or the
       Constituent Company Guaranty or the Notes or any other act or acts on the
       part of the holders from time to time of the Notes;

              (k) the voluntary or involuntary liquidation, dissolution, sale or
       other disposition of all or substantially all the assets, marshalling of
       assets and liabilities, receivership, insolvency, bankruptcy, assignment
       for the benefit of creditors, reorganization or arrangement under
       bankruptcy or similar laws, composition with creditors or readjustment
       of, or other similar procedures affecting the Company, the Parent
       Corporation or any Constituent Company Guarantor or any of the assets of
       any of them, or any allegation or contest of the validity of this
       Agreement or the Constituent Company Guaranty or the disaffirmance of
       this Agreement or the Constituent Company Guaranty in any such proceeding
       (it being understood that the obligations of the Parent

                                      -35-
<PAGE>
       Corporation under this Agreement shall continue to be effective or be
       reinstated, as the case may be, if at any time any payment made with
       respect to the Notes is rescinded or must otherwise be restored or
       returned by any holder of the Notes upon the insolvency, bankruptcy or
       reorganization of the Company, the Parent Corporation or any Constituent
       Company Guarantor, all as though such payment had not been made);

              (l) any event or action that would, in the absence of this clause,
       result in the release or discharge by operation of law of the Parent
       Corporation from the performance or observance of any obligation,
       covenant or agreement contained in this Agreement;

              (m) the invalidity or unenforceability of the Notes, this
       Agreement or any Constituent Company Guaranty;

              (n) the invalidity or unenforceability of the obligations of the
       Parent Corporation under this Agreement, the absence of any action to
       enforce such obligations of the Parent Corporation, any waiver or consent
       by the Parent Corporation with respect to any of the provisions hereof or
       any other circumstances which might otherwise constitute a discharge or
       defense by the Parent Corporation, including, without limitation, any
       failure or delay in the enforcement of the obligations of the Parent
       Corporation with respect to this Agreement or of notice thereof; or any
       suit or other action brought by any shareholder or creditor of, or by,
       the Parent Corporation or any other Person, for any reason, including,
       without limitation, any suit or action in any way attacking or involving
       any issue, matter or thing in respect of this Agreement, the Notes, the
       Constituent Company Guaranty or any other agreement;

              (o) the default or failure of the Company fully to perform any of
       its covenants or obligations set forth in this Agreement;

              (p) the impossibility or illegality of performance on the part of
       the Company or any other Person of its obligations under the Notes, this
       Agreement, the Constituent Company Guaranty or any other instruments;

              (q) in respect of the Company, any Constituent Company Guarantor
       or any other Person, any change of circumstances, whether or not foreseen
       or foreseeable, whether or not imputable to the Company or any other
       Person, or other impossibility of performance through fire, explosion,
       accident, labor disturbance, floods, droughts, embargoes, wars (whether
       or not declared), civil commotions, acts of God or the public enemy,
       delays or failure of suppliers or carriers, inability to obtain
       materials, action of any federal or state regulatory body or agency,
       change of law or any other causes affecting performance, or other force
       majeure, whether or not beyond the control of the Company or any other
       Person and whether or not of the kind hereinbefore specified;

              (r) any attachment, claim, demand, charge, Lien, order, process,
       encumbrance or any other happening or event or reason, similar or
       dissimilar to the foregoing, or any withholding or diminution at the
       source, by reason of any taxes, assessments, expenses, indebtedness,
       obligations or liabilities of any character, foreseen or unforeseen, and

                                      -36-
<PAGE>
       whether or not valid, incurred by or against any Person, or any claims,
       demands, charges or Liens of any nature, foreseen or unforeseen, incurred
       by any Person, or against any sums payable under this Agreement or the
       Constituent Company Guaranty so that such sums would be rendered
       inadequate or would be unavailable to make the payments herein provided;

              (s) the failure of the Parent Corporation to receive any benefit
       or consideration from or as a result of its execution, delivery and
       performance of this Agreement;

              (t) the failure of any Constituent Company Guarantor to receive
       any benefit or consideration from or as a result of its execution,
       delivery and performance of the Constituent Company Guaranty;

              (u) any other circumstance which might otherwise constitute a
       defense available to, or a discharge of, the Parent Corporation in
       respect of the obligations of the Parent Corporation under this
       Agreement;

              (v) any default, failure or delay, willful or otherwise, in the
       performance by the Company, any Constituent Company Guarantor or any
       other Person of any obligations of any kind or character whatsoever of
       the Company, any Constituent Company Guarantor or any other Person
       (including, without limitation, the obligations and undertakings of the
       Company, any Constituent Company Guarantor or any other Person under the
       Notes or this Agreement); or

              (w) any order, judgment, decree, ruling or regulation (whether or
       not valid) of any court of any nation or of any political subdivision
       thereof or any body, agency, department, official or administrative or
       regulatory agency of any thereof or any other action, happening, event or
       reason whatsoever which shall delay, interfere with, hinder or prevent,
       or in any way adversely affect, the performance by any party of its
       respective obligations under the Notes, this Agreement, the Constituent
       Company Guaranty or any instrument relating thereto;

provided that the specific enumeration of the above-mentioned acts, failures or
omissions shall not be deemed to exclude any other acts, failures or omissions,
though not specifically mentioned above, it being the purpose and intent of this
paragraph that the obligations of the Parent Corporation hereunder shall be
absolute and unconditional and shall not be discharged, impaired or varied
except by the payment to the holders thereof of the principal of, Make-Whole
Amount (if any) and interest on the Notes, and of all other sums due and owing
to the holders of the Notes pursuant to this Agreement, and then only to the
extent of such payments. Without limiting any of the other terms or provisions
hereof, it is understood and agreed that in order to hold the Parent Corporation
liable hereunder, there shall be no obligation on the part of any holder of any
Note to resort, in any manner or form, for payment, to the Company, to any
Constituent Company Guarantor or to any other Person or to the properties or
estates of any of the foregoing. All rights of the holder of any Note pursuant
thereto or to this Agreement may be transferred

                                      -37-
<PAGE>
or assigned at any time or from time to time and shall be considered to be
transferred or assigned upon the transfer of such Note, whether with or without
the consent of or notice to the Parent Corporation, any Constituent Company
Guarantor or the Company. Without limiting the foregoing, it is understood that
repeated and successive demands may be made and recoveries may be had hereunder
as and when, from time to time, the Company shall default under the terms of the
Notes or this Agreement and that, notwithstanding recovery hereunder for or in
respect of any given default or defaults by the Company under the Notes or this
Agreement, the Parent Corporation's agreements under this SECTION 11 shall
remain in full force and effect and shall apply to each and every subsequent
default.

       Section 11.3. Subrogation. To the extent of any payments made under this
Agreement, the Parent Corporation shall be subrogated to the rights of the
holder of the Notes receiving such payments, but the Parent Corporation
covenants and agrees that such right of subrogation shall be subordinate in
right of payment to the rights of any holders of the Notes for which full
payment has not been made or provided for and, to that end, the Parent
Corporation agrees not to claim or enforce any such right of subrogation or any
right of set-off or any other right which may arise on account of any payment
made by the Parent Corporation in accordance with the provisions of this
Agreement, including, without limitation, any right of reimbursement,
exoneration, contribution or indemnification and any right to participate in any
claim or remedy of any holder of the Notes against the Company, the Parent
Corporation or any Constituent Company Guarantor, whether or not such claim,
remedy or right arises in equity or under contract, statute or common law,
including, without limitation, the right to take or receive from the Company,
the Parent Corporation or any Constituent Company Guarantor, directly or
indirectly, in cash or other property or by set-off or in any other manner,
payment or security on account of such claim, remedy or right, unless and until
all of the Notes owned by Persons other than the Parent Corporation or any of
its affiliates and all other sums due or payable under this Agreement have been
fully and indefeasibly paid and discharged or payment therefor has been
provided. If any amount shall be paid to the Parent Corporation in violation of
the preceding sentence at any time prior to the indefeasible cash payment in
full in U.S. Dollars of the Notes and all other amounts payable under this
Agreement, such amounts shall be held in trust for the benefit of the holders of
the Notes and shall forthwith be paid to the holders of the Notes to be credited
and applied to the amounts due or to become due with respect to the Notes and
all other amounts payable under this Agreement, whether matured or unmatured.

       Section 11.4. Preference. The Parent Corporation agrees that to the
extent the Company, any Constituent Company Guarantor or any other Person makes
any payment on the Notes, which payment or any part thereof is subsequently
invalidated, voided, declared to be fraudulent or preferential, set aside,
recovered, rescinded or is required to be retained by or repaid to a trustee,
liquidator, receiver or any other Person under any bankruptcy code, common law
or equitable cause, then and to the extent of such payment, the obligation or
the part thereof intended to be satisfied shall be revived and continued in full
force and effect with respect to the Parent Corporation's obligations hereunder,
as if said payment had not been made. The liability of the Parent Corporation
hereunder shall not be reduced or discharged, in whole or in part, by any
payment to any holder of the Notes from any source that is thereafter paid,
returned or refunded in whole or in part by reason of the assertion of a claim
of any kind relating thereto, including, but not limited to, any claim for
breach of contract, breach of warranty, preference, illegality, invalidity or
fraud asserted by any account debtor or by any other Person.

                                      -38-
<PAGE>
       Section 11.5. Marshalling. None of the holders of the Notes shall be
under any obligation (a) to marshall any assets in favor of the Parent
Corporation or in payment of any or all of the liabilities of the Company under
or in respect of the Notes or the obligation of the Parent Corporation hereunder
or (b) to pursue any other remedy that the Parent Corporation may or may not be
able to pursue itself and that may lessen the Parent Corporation's burden or any
right to which the Parent Corporation hereby expressly waives. The obligations
of the Parent Corporation under this Agreement rank pari passu in right of
payment with all other Debt (actual or contingent) of the Parent Corporation
which is not secured or the subject of any statutory trust or preference or
which is not expressly subordinated in right of payment to any other Debt.

       Section 11.6. Subordination. The Parent Corporation agrees that all
obligations and liabilities of the Company and each other Subsidiary owing to
the Parent Corporation, including, without limitation, all intercompany loans
and receivables and other obligations of the Company and the other Subsidiaries
owing to the Parent Corporation (the "Intercompany Obligations"), shall be
subordinate and junior in right of payment to the prior indefeasible payment in
full of all obligations of the Company and each other Subsidiary owing to the
holders of the Notes under this Agreement, the Notes and the other Note
Documents.

       The Parent Corporation shall execute such additional documents as the
Required Holders may reasonably request from time to time to evidence the
foregoing subordination.

SECTION 12. EVENTS OF DEFAULT.

       An "Event of Default" shall exist if any of the following conditions or
events shall occur and be continuing:

              (a) the Company defaults in the payment of any principal or
       Make-Whole Amount, if any, on any Note when the same becomes due and
       payable, whether at maturity or at a date fixed for prepayment or by
       declaration or otherwise; or

              (b) the Company defaults in the payment of any interest on any
       Note for more than five Business Days after the same becomes due and
       payable; or

              (c) the Parent Corporation defaults in the performance of or
       compliance with any term contained in SECTION 7.1(D) or SECTIONS 10.1
       through 10.6, inclusive, or

              (d) the Parent Corporation or the Company defaults in the
       performance of or compliance with any term contained herein (other than
       those referred to in paragraphs (a), (b) and (c) of this SECTION 12) and
       such default is not remedied within 30 days after the earlier of (i) a
       Responsible Officer obtaining actual knowledge of such default and (ii)
       the Parent Corporation receiving written notice of such default from any
       holder of a Note (any such written notice to be identified as a "notice
       of default" and to refer specifically to this paragraph (d) of SECTION
       12); or

              (e) any representation or warranty made in writing by or on behalf
       of the Parent Corporation, the Company or any Constituent Company
       Guarantor or by any

                                      -39-
<PAGE>
       officer of the Parent Corporation, the Company or any Constituent Company
       Guarantor in this Agreement, the Constituent Company Guaranty or in any
       writing furnished in connection with the transactions contemplated hereby
       proves to have been false or incorrect in any material respect on the
       date as of which made; or

              (f) (i) the Parent Corporation or any Subsidiary (including the
       Company or any Constituent Company Guarantor) is in default (as principal
       or as guarantor or other surety) in the payment of any principal of or
       premium or make-whole amount or interest on any Debt that is outstanding
       in an aggregate principal amount of at least $25,000,000 beyond any
       period of grace provided with respect thereto, or (ii) the Parent
       Corporation or any Subsidiary (including the Company or any Constituent
       Company Guarantor) is in default in the performance of or compliance with
       any term of any evidence of any Debt in an aggregate outstanding
       principal amount of at least $25,000,000 or of any mortgage, indenture or
       other agreement relating thereto or any other condition exists, and as a
       consequence of such default or condition such Debt has become, or has
       been declared (or one or more Persons are entitled to declare such Debt
       to be), due and payable before its stated maturity or before its
       regularly scheduled dates of payment, or (iii) as a consequence of the
       occurrence or continuation of any event or condition (other than the
       passage of time or the right of the holder of Debt to convert such Debt
       into equity interests), (x) the Parent Corporation or any Subsidiary
       (including the Company or any Constituent Company Guarantor) has become
       obligated to purchase or repay Debt before its regular maturity or before
       its regularly scheduled dates of payment in an aggregate outstanding
       principal amount of at least $25,000,000, or (y) one or more Persons have
       the right to require the Parent Corporation or any Subsidiary (including
       the Company or any Constituent Company Guarantor) so to purchase or repay
       such Debt; or

              (g) the Parent Guaranty provided in SECTION 11 or the Constituent
       Company Guaranty shall cease to be in full force and effect for any
       reason whatsoever (other than with the prior consent of the holders),
       including, without limitation, a determination by a Governmental
       Authority of competent jurisdiction that either such guaranty is invalid,
       void or unenforceable or the Parent Corporation or any Constituent
       Company Guarantor shall contest or deny in writing the validity or
       enforceability of any of its obligations under the Parent Guaranty or the
       Constituent Company Guaranty, as applicable; or

              (h) the Parent Corporation or any Subsidiary (including without
       limitation the Company or any Constituent Company Guarantor) (i) is
       generally not paying, or admits in writing its inability to pay, its
       debts as they become due, (ii) files, or consents by answer or otherwise
       to the filing against it of, a petition for relief or reorganization or
       arrangement or any other petition in bankruptcy, for liquidation or to
       take advantage of any bankruptcy, insolvency, reorganization, moratorium
       or other similar law of any jurisdiction, (iii) makes an assignment for
       the benefit of its creditors, (iv) consents to the appointment of a
       custodian, receiver, trustee or other officer with similar powers with
       respect to it or with respect to any substantial part of its property,
       (v) is adjudicated as insolvent or to be liquidated, or (vi) takes
       corporate action for the purpose of any of the foregoing; or

                                      -40-
<PAGE>
              (i) a court or Governmental Authority of competent jurisdiction
       enters an order appointing, without consent by the Parent Corporation or
       any of its Subsidiaries (including, without limitation, the Company or
       any Constituent Company Guarantor), a custodian, receiver, trustee or
       other officer with similar powers with respect to it or with respect to
       any substantial part of its property, or constituting an order for relief
       or approving a petition for relief or reorganization or any other
       petition in bankruptcy or for liquidation or to take advantage of any
       bankruptcy or insolvency law of any jurisdiction, or ordering the
       dissolution, winding-up or liquidation of the Parent Corporation or any
       of its Subsidiaries (including without limitation the Company or any
       Constituent Company Guarantor), or any such petition shall be filed
       against the Parent Corporation or any of its Subsidiaries (including
       without limitation the Company or any Constituent Company Guarantor) and
       such petition shall not be dismissed within 60 days; or

              (j) a final judgment or judgments for the payment of money
       aggregating in excess of $50,000,000 are rendered against one or more of
       the Parent Corporation and its Subsidiaries (including without limitation
       the Company or any Constituent Company Guarantor) and which judgments are
       not, within 30 days after entry thereof, bonded, discharged or stayed
       pending appeal, or are not discharged within 30 days after the expiration
       of such stay; or

              (k) if (i) any Plan shall fail to satisfy the minimum funding
       standards of ERISA or the Code for any plan year or part thereof or a
       waiver of such standards or extension of any amortization period is
       sought or granted under Section 412 of the Code, (ii) a notice of intent
       to terminate any Plan shall have been or is reasonably expected to be
       filed with the PBGC or the PBGC shall have instituted proceedings under
       ERISA Section 4042 to terminate or appoint a trustee to administer any
       Plan or the PBGC shall have notified the Parent Corporation or any ERISA
       Affiliate that a Plan may become a subject of any such proceedings, (iii)
       the aggregate "amount of unfunded benefit liabilities" (within the
       meaning of Section 4001(a)(18) of ERISA) under all Plans, determined in
       accordance with Title IV of ERISA, shall exceed $10,000,000, (iv) the
       Parent Corporation or any ERISA Affiliate shall have incurred or is
       reasonably expected to incur any liability pursuant to Title I or IV of
       ERISA or the penalty or excise tax provisions of the Code relating to
       employee benefit plans, (v) the Parent Corporation or any ERISA Affiliate
       withdraws from any Multiemployer Plan, or (vi) the Parent Corporation or
       any Subsidiary establishes or amends any employee welfare benefit plan
       that provides post-employment welfare benefits in a manner that would
       increase the liability of the Parent Corporation or any Subsidiary
       thereunder; and any such event or events described in clauses (i) through
       (vi) above, either individually or together with any other such event or
       events, could reasonably be expected to have a Material Adverse Effect.

As used in SECTION 12(K), the terms "employee benefit plan" and "employee
welfare benefit plan" shall have the respective meanings assigned to such terms
in Section 3 of ERISA.

                                      -41-
<PAGE>
SECTION 13. REMEDIES ON DEFAULT, ETC.

       Section 13.1. Acceleration. (a) If an Event of Default with respect to
the Parent Corporation or the Company described in paragraph (h) or (i) of
SECTION 12 (other than an Event of Default described in clause (i) of paragraph
(h) or described in clause (vi) of paragraph (h) by virtue of the fact that such
clause encompasses clause (i) of paragraph (h)) has occurred, all the Notes then
outstanding shall automatically become immediately due and payable.

       (b) If any other Event of Default has occurred and is continuing, any
holder or holders of more than 50% in principal amount of the Notes at the time
outstanding may at any time at its or their option, by notice or notices to the
Parent Corporation and the Company, declare all the Notes then outstanding to be
immediately due and payable.

       (c) If any Event of Default described in paragraph (a) or (b) of SECTION
12 has occurred and is continuing, any holder or holders of Notes at the time
outstanding affected by such Event of Default may at any time, at its or their
option, by notice or notices to the Parent Corporation and the Company, declare
all the Notes held by it or them to be immediately due and payable.

       Upon any Notes becoming due and payable under this SECTION 13.1, whether
automatically or by declaration, such Notes will forthwith mature and the entire
unpaid principal amount of such Notes, plus (i) all accrued and unpaid interest
thereon and (ii) the Make-Whole Amount determined in respect of such principal
amount (to the full extent permitted by applicable law), shall all be
immediately due and payable, in each and every case without presentment, demand,
protest or further notice, all of which are hereby waived. The Parent
Corporation and the Company acknowledge, and the parties hereto agree, that each
holder of a Note has the right to maintain its investment in the Notes free from
repayment by the Company (except as herein specifically provided for), and that
the provision for payment of a Make-Whole Amount by the Company in the event
that the Notes are prepaid or are accelerated as a result of an Event of
Default, is intended to provide compensation for the deprivation of such right
under such circumstances.

       Section 13.2. Other Remedies. If any Default or Event of Default has
occurred and is continuing, and irrespective of whether any Notes have become or
have been declared immediately due and payable under SECTION 13.1, the holder of
any Note at the time outstanding may proceed to protect and enforce the rights
of such holder by an action at law, suit in equity or other appropriate
proceeding, whether for the specific performance of any agreement contained
herein or in any Note, or for an injunction against a violation of any of the
terms hereof or thereof, or in aid of the exercise of any power granted hereby
or thereby or by law or otherwise.

       Section 13.3. Rescission. At any time after any Notes have been declared
due and payable pursuant to clause (b) or (c) of SECTION 13.1, the holders of
more than 50% in principal amount of the Notes then outstanding, by written
notice to the Parent Corporation and the Company, may rescind and annul any such
declaration and its consequences if (a) the Company has paid all overdue
interest on the Notes, all principal of and Make-Whole Amount, if any, on any
Notes that are due and payable and are unpaid other than by reason of such
declaration, and all interest on such overdue principal and Make-Whole Amount,
if any, and (to the extent

                                      -42-
<PAGE>
permitted by applicable law) any overdue interest in respect of the Notes, at
the Default Rate, (b) all Events of Default and Defaults, other than non-payment
of amounts that have become due solely by reason of such declaration, have been
cured or have been waived pursuant to SECTION 18, and (c) no judgment or decree
has been entered for the payment of any monies due pursuant hereto or to the
Notes. No rescission and annulment under this SECTION 13.3 will extend to or
affect any subsequent Event of Default or Default or impair any right consequent
thereon.

       Section 13.4. No Waivers or Election of Remedies, Expenses, Etc. No
course of dealing and no delay on the part of any holder of any Note in
exercising any right, power or remedy shall operate as a waiver thereof or
otherwise prejudice such holder's rights, powers or remedies. No right, power or
remedy conferred by this Agreement or by any Note upon any holder thereof shall
be exclusive of any other right, power or remedy referred to herein or therein
or now or hereafter available at law, in equity, by statute or otherwise.
Without limiting the obligations of the Parent Corporation and Company under
SECTION 16, the Parent Corporation and Company agree, jointly and severally, to
pay to the holder of each Note on demand such further amount as shall be
sufficient to cover all costs and expenses of such holder incurred in any
enforcement or collection under this SECTION 13, including, without limitation,
reasonable attorneys' fees, expenses and disbursements.

SECTION 14. REGISTRATION; EXCHANGE; SUBSTITUTION OF NOTES.

       Section 14.1. Registration of Notes. The Company shall keep at its
principal executive office a register for the registration and registration of
transfers of Notes. The name and address of each holder of one or more Notes,
each transfer thereof and the name and address of each transferee of one or more
Notes shall be registered in such register. Prior to due presentment for
registration of transfer, the Person in whose name any Note shall be registered
shall be deemed and treated as the owner and holder thereof for all purposes
hereof, and the Company shall not be affected by any notice or knowledge to the
contrary. The Company shall give to any holder of a Note that is an
Institutional Investor promptly upon request therefor, a complete and correct
copy of the names and addresses of all registered holders of Notes.

       Section 14.2. Transfer and Exchange of Notes. Upon surrender of any Note
at the principal executive office of the Company for registration of transfer or
exchange (and in the case of a surrender for registration of transfer, duly
endorsed or accompanied by a written instrument of transfer duly executed by the
registered holder of such Note or its attorney duly authorized in writing and
accompanied by the address for notices of each transferee of such Note or part
thereof), the Company shall execute and deliver, at the Company's expense
(except as provided below), one or more new Notes of the same series (as
requested by the holder thereof) in exchange therefor, in an aggregate principal
amount equal to the unpaid principal amount of the surrendered Note. Each such
new Note shall be payable to such Person as such holder may request and shall be
substantially in the form of EXHIBIT 1-A or 1-B, as applicable. Each such new
Note shall be dated and bear interest from the date to which interest shall have
been paid on the surrendered Note or dated the date of the surrendered Note if
no interest shall have been paid thereon. The Company may require payment of a
sum sufficient to cover any stamp tax or governmental charge imposed in respect
of any such transfer of Notes. Notes shall not be transferred in denominations
of less than $500,000; provided that if necessary to enable the

                                      -43-
<PAGE>
registration of transfer by a holder of its entire holding of Notes, one Note
may be in a denomination of less than $500,000. Any transferee, by its
acceptance of a Note registered in its name (or the name of its nominee), shall
be deemed to have made the representation set forth in SECTION 6.2.

       Section 14.3. Replacement of Notes. Upon receipt by the Company of
evidence reasonably satisfactory to it of the ownership of and the loss, theft,
destruction or mutilation of any Note (which evidence shall be, in the case of
an Institutional Investor, notice from such Institutional Investor of such
ownership and such loss, theft, destruction or mutilation), and

              (a) in the case of loss, theft or destruction, of indemnity
       reasonably satisfactory to it (provided that if the holder of such Note
       is, or is a nominee for, an original Purchaser or another holder of a
       Note with a minimum net worth of at least $75,000,000, such Person's own
       unsecured agreement of indemnity shall be deemed to be satisfactory), or

              (b) in the case of mutilation, upon surrender and cancellation
       thereof,

the Company at its own expense shall execute and deliver, in lieu thereof, a new
Note of the same series, dated and bearing interest from the date to which
interest shall have been paid on such lost, stolen, destroyed or mutilated Note
or dated the date of such lost, stolen, destroyed or mutilated Note if no
interest shall have been paid thereon.

SECTION 15. PAYMENTS ON NOTES.

        Section 15.1. Place of Payment. Subject to SECTION 15.2, payments of
principal, Make-Whole Amount, if any, and interest becoming due and payable on
the Notes shall be made in Phoenix, Arizona, at the principal office of the
Company in such jurisdiction. The Company may at any time, by notice to each
holder of a Note, change the place of payment of the Notes so long as such place
of payment shall be either the principal office of the Company in such
jurisdiction or the principal office of a bank or trust company in such
jurisdiction.

        Section 15.2. Home Office Payment. So long as any Purchaser or such
Purchaser's nominee shall be the holder of any Note, and notwithstanding
anything contained in SECTION 15.1 or in such Note to the contrary, the Company
will pay all sums becoming due on such Note for principal, Make-Whole Amount, if
any, and interest by the method and at the address specified for such purpose
for such Purchaser on SCHEDULE A hereto or by such other method or at such other
address as such Purchaser shall have from time to time specified to the Company
in writing for such purpose, without the presentation or surrender of such Note
or the making of any notation thereon, except that upon written request of the
Company made concurrently with or reasonably promptly after payment or
prepayment in full of any Note, such Purchaser shall surrender such Note for
cancellation, reasonably promptly after any such request, to the Company at its
principal executive office or at the place of payment most recently designated
by the Company pursuant to SECTION 15.1. Prior to any sale or other disposition
of any Note held by any Purchaser or such Person's nominee, such Person will, at
its election, either endorse thereon the amount of principal paid thereon and
the last date to which interest has been paid thereon or

                                      -44-
<PAGE>
surrender such Note to the Company in exchange for a new Note or Notes pursuant
to SECTION 14.2. The Company will afford the benefits of this SECTION 15.2 to
any Institutional Investor that is the direct or indirect transferee of any Note
purchased under this Agreement and that has made the same agreement relating to
such Note as is made in this SECTION 15.2.

SECTION 16. EXPENSES, ETC.

        Section 16.1. Transaction Expenses. Whether or not the transactions
contemplated hereby are consummated, the Parent Corporation and the Company
jointly and severally agree to pay all costs and expenses (including reasonable
attorneys' fees of one special counsel and, if reasonably required, local or
other counsel) incurred by each Purchaser and each other holder of a Note in
connection with such transactions and in connection with any amendments, waivers
or consents under or in respect of this Agreement, the Notes or the Constituent
Company Guaranty (whether or not such amendment, waiver or consent becomes
effective), including, without limitation: (a) the costs and expenses incurred
in enforcing or defending (or determining whether or how to enforce or defend)
any rights under this Agreement, the Notes or the Constituent Company Guaranty
or in responding to any subpoena or other legal process or informal
investigative demand issued in connection with this Agreement, the Notes or the
Constituent Company Guaranty, or by reason of being a holder of any Note, (b)
the costs and expenses, including financial advisors' fees, incurred in
connection with the insolvency or bankruptcy of the Parent Corporation or any
Subsidiary, (including, without limitation, the Company or any Constituent
Company Guarantor) or in connection with any work-out or restructuring of the
transactions contemplated hereby or by the Notes or the Constituent Company
Guaranty and (c) fees payable in connection with the initial filing of this
Agreement and all related documents and financial information with the
Securities Valuation Office of the National Association of Insurance
Commissioners (the "SVO") and all subsequent annual and interim filings of
documents and financial information related to this Agreement with the SVO or
any successor organization acceding to the authority thereof. The Parent
Corporation and the Company jointly and severally agree to pay, and to save each
Purchaser and each other holder of a Note harmless from, all claims in respect
of any fees, costs or expenses if any, of brokers and finders (other than those
retained by the Purchasers).

       Section 16.2. Survival. The obligations of the Company under this SECTION
16 will survive the payment or transfer of any Note, the enforcement, amendment
or waiver of any provision of this Agreement, the Notes or the Constituent
Company Guaranty and the termination of this Agreement.

SECTION 17. SURVIVAL OF REPRESENTATIONS AND WARRANTIES; ENTIRE AGREEMENT.

       All representations and warranties contained herein shall survive the
execution and delivery of this Agreement, the Notes and the Constituent Company
Guaranty, the purchase or transfer by any Purchaser of any Note or portion
thereof or interest therein and the payment of any Note, and may be relied upon
by any subsequent holder of a Note, regardless of any investigation made at any
time by or on behalf of any Purchaser or any other holder of a Note. All
statements contained in any certificate or other instrument delivered by or on
behalf of the Parent Corporation, the Company or any Constituent Company
Guarantor pursuant to this

                                      -45-
<PAGE>
Agreement or the Constituent Company Guaranty shall be deemed representations
and warranties of the Parent Corporation, the Company or a Constituent Company
Guarantor under this Agreement or the Constituent Company Guaranty, as the case
may be. Subject to the preceding sentence, this Agreement, the Notes and the
Constituent Company Guaranty embody the entire agreement and understanding among
the Purchasers, the Parent Corporation, the Company and the Constituent Company
Guarantors and supersede all prior agreements and understandings relating to the
subject matter hereof.

SECTION 18. AMENDMENT AND WAIVER.

       Section 18.1. Requirements. This Agreement and the Notes may be amended,
and the observance of any term hereof or of the Notes may be waived (either
retroactively or prospectively), with (and only with) the written consent of the
Parent Corporation and the Company and the Required Holders, except that (a) no
amendment or waiver of any of the provisions of SECTION 1, 2, 3, 4, 5, 6 or 22
hereof, or any defined term (as it is used therein), will be effective as to as
to any holder of Notes unless consented to by such holder in writing, and (b) no
such amendment or waiver may, without the written consent of the holder of each
Note at the time outstanding affected thereby, (i) subject to the provisions of
SECTION 13 relating to acceleration or rescission, change the amount or time of
any prepayment or payment of principal of, or change the rate or change the time
of payment or method of computation of interest or of the Make-Whole Amount on,
the Notes, (ii) change the percentage of the principal amount of the Notes the
holders of which are required to consent to any such amendment or waiver, (iii)
amend any of SECTIONS 8, 12(A), 12(B), 13, 18 or 21, or (iv) reduce or alter the
scope of the Guaranty contained in SECTION 11.

       Section 18.2. Solicitation of Holders of Notes.

       (a) Solicitation. The Parent Corporation and the Company will provide
each holder of the Notes (irrespective of the amount of Notes then owned by it)
with sufficient information, sufficiently far in advance of the date a decision
is required, to enable such holder to make an informed and considered decision
with respect to any proposed amendment, waiver or consent in respect of any of
the provisions hereof, of the Constituent Company Guaranty or of the Notes. The
Parent Corporation and the Company will deliver executed or true and correct
copies of each amendment, waiver or consent effected pursuant to the provisions
of this SECTION 18 to each holder of outstanding Notes promptly following the
date on which it is executed and delivered by, or receives the consent or
approval of, the requisite holders of Notes.

       (b) Payment. Neither the Parent Corporation nor the Company will directly
or indirectly pay or cause to be paid any remuneration, whether by way of
supplemental or additional interest, fee or otherwise, or grant any security, to
any holder of Notes as consideration for or as an inducement to the entering
into by any holder of Notes of any waiver or amendment of any of the terms and
provisions hereof unless such remuneration is concurrently paid, or security is
concurrently granted, on the same terms, ratably to each holder of Notes then
outstanding even if such holder did not consent to such waiver or amendment.

                                      -46-
<PAGE>
       Section 18.3. Binding Effect, Etc. Any amendment or waiver consented to
as provided in this SECTION 18 applies equally to all holders of Notes and is
binding upon them and upon each future holder of any Note and upon the Parent
Corporation and the Company without regard to whether such Note has been marked
to indicate such amendment or waiver. No such amendment or waiver will extend to
or affect any obligation, covenant, agreement, Default or Event of Default not
expressly amended or waived or impair any right consequent thereon. No course of
dealing between the Parent Corporation, the Company and the holder of any Note
nor any delay in exercising any rights hereunder or under any Note shall operate
as a waiver of any rights of any holder of such Note. As used herein, the term
"this Agreement" and references thereto shall mean this Agreement as it may from
time to time be amended or supplemented.

       Section 18.4. Notes Held by Company, Etc. Solely for the purpose of
determining whether the holders of the requisite percentage of the aggregate
principal amount of Notes then outstanding approved or consented to any
amendment, waiver or consent to be given under this Agreement, the Constituent
Company Guaranty or the Notes, or have directed the taking of any action
provided herein or in the Notes to be taken upon the direction of the holders of
a specified percentage of the aggregate principal amount of Notes then
outstanding, Notes directly or indirectly owned by the Parent Corporation or the
Company or any of their respective Affiliates shall be deemed not to be
outstanding.

SECTION 19. NOTICES.

       All notices and communications provided for hereunder shall be in writing
and sent (a) by telefacsimile if the sender on the same day sends a confirming
copy of such notice by a recognized overnight delivery service (charges
prepaid), or (b) by registered or certified mail with return receipt requested
(postage prepaid), or (c) by a recognized overnight delivery service (with
charges prepaid). Any such notice must be sent:

              (i) if to a Purchaser or such Purchaser's nominee, to such
       Purchaser or such Purchaser's nominee at the address specified for such
       communications in SCHEDULE A to this Agreement, or at such other address
       as such Purchaser or such Purchaser's nominee shall have specified to the
       Company in writing,

              (ii) if to any other holder of any Note, to such holder at such
       address as such other holder shall have specified to the Company in
       writing,

              (iii) if to the Company, to the Company at its address set forth
       at the beginning hereof to the attention of Chief Financial Officer, or
       at such other address as the Company shall have specified to the holder
       of each Note in writing, or

              (iv) if to the Parent Corporation, to the Parent Corporation at
       its address set forth at the beginning hereof to the attention of Chief
       Financial Officer, or at such other address as the Parent Corporation
       shall have specified to the holder of each Note in writing.

Notices under this SECTION 19 will be deemed given only when actually received.

                                      -47-
<PAGE>
SECTION 20. REPRODUCTION OF DOCUMENTS.

              This Agreement and the Constituent Company Guaranty and all
       documents relating thereto, including, without limitation, (a) consents,
       waivers and modifications that may hereafter be executed, (b) documents
       received by each Purchaser at the Closing (except the Notes themselves),
       and (c) financial statements, certificates and other information
       previously or hereafter furnished to each Purchaser, may be reproduced by
       such Purchaser by any photographic, photostatic, microfilm, microcard,
       miniature photographic or other similar process and such Purchaser may
       destroy any original document so reproduced. The Parent Corporation and
       the Company agree and stipulate that, to the extent permitted by
       applicable law, any such reproduction shall be admissible in evidence as
       the original itself in any judicial or administrative proceeding (whether
       or not the original is in existence and whether or not such reproduction
       was made by any Purchaser in the regular course of business) and any
       enlargement, facsimile or further reproduction of such reproduction shall
       likewise be admissible in evidence. This SECTION 20 shall not prohibit
       the Parent Corporation, the Company or any other holder of Notes from
       contesting any such reproduction to the same extent that it could contest
       the original, or from introducing evidence to demonstrate the inaccuracy
       or incompleteness of any such reproduction.

SECTION 21. CONFIDENTIAL INFORMATION.

       For the purposes of this SECTION 21, "Confidential Information" means
information delivered to any Purchaser by or on behalf of the Parent Corporation
or any Subsidiary (including, without limitation, the Company) in connection
with the transactions contemplated by or otherwise pursuant to this Agreement
that is proprietary in nature and that was clearly marked or labeled or
otherwise adequately identified in writing when received by such Purchaser as
being confidential information of the Parent Corporation or such Subsidiary;
provided that such term does not include information that (a) was publicly known
or otherwise known to such Purchaser prior to the time of such disclosure, (b)
subsequently becomes publicly known through no act or omission by such Purchaser
or any Person acting on such Purchaser's behalf, (c) otherwise becomes known to
such Purchaser other than through disclosure by the Parent Corporation or any
Subsidiary (including, without limitation, the Company) or (d) constitutes
financial statements delivered to such Purchaser under SECTION 7.1 that are
otherwise publicly available. Each Purchaser will maintain the confidentiality
of such Confidential Information in accordance with procedures adopted by such
Purchaser in good faith to protect confidential information of third parties
delivered to such Purchaser; provided that such Purchaser may deliver or
disclose Confidential Information to (i) such Purchaser's directors, trustees,
officers, employees, agents, attorneys and affiliates (to the extent such
disclosure reasonably relates to the administration of the investment
represented by such Purchaser's Notes, (ii) such Purchaser's financial advisors
and other professional advisors who agree to hold confidential the Confidential
Information substantially in accordance with the terms of this SECTION 21, (iii)
any other holder of any Note, (iv) any Institutional Investor to which such
Purchaser sells or offers to sell such Note or any part thereof or any
participation therein (if such Person has agreed in writing prior to its receipt
of such Confidential Information to be bound by the provisions of this SECTION
21), (v) any Person from which such Purchaser offers to purchase any security of
the Parent Corporation or the Company (if such Person has agreed in writing
prior to its receipt of such

                                      -48-
<PAGE>
Confidential Information to be bound by the provisions of this SECTION 21), (vi)
any Federal or state regulatory authority having jurisdiction over such
Purchaser, (vii) the National Association of Insurance Commissioners or any
similar organization, or any nationally recognized rating agency that requires
access to information about such Purchaser's investment portfolio or (viii) any
other Person to which such delivery or disclosure may be necessary or
appropriate (w) to effect compliance with any law, rule, regulation or order
applicable to such Purchaser, (x) in response to any subpoena or other legal
process, (y) in connection with any litigation to which such Purchaser is a
party or (z) if an Event of Default has occurred and is continuing, to the
extent such Purchaser may reasonably determine such delivery and disclosure to
be necessary or appropriate in the enforcement or for the protection of the
rights and remedies under such Purchaser's Notes, this Agreement or the
Constituent Company Guaranty. Each holder of a Note, by its acceptance of a
Note, will be deemed to have agreed to be bound by and to be entitled to the
benefits of this SECTION 21 as though it were a party to this Agreement. On
reasonable request by the Parent Corporation or the Company in connection with
the delivery to any holder of a Note of information required to be delivered to
such holder under this Agreement or requested by such holder (other than a
holder that is a party to this Agreement or its nominee), such holder will enter
into an agreement with the Parent Corporation and the Company embodying the
provisions of this SECTION 21.

SECTION 22. SUBSTITUTION OF PURCHASER.

         Each Purchaser shall have the right to substitute any one of such
Purchaser's Affiliates as the purchaser of the Notes that such Purchaser has
agreed to purchase hereunder, by written notice to the Parent Corporation and
the Company, which notice shall be signed by both such Purchaser and such
Affiliate, shall contain such Affiliate's agreement to be bound by this
Agreement and shall contain a confirmation by such Affiliate of the accuracy
with respect to it of the representations set forth in SECTION 6. Upon receipt
of such notice, wherever the word "Purchaser" is used in this Agreement (other
than in this SECTION 22), such word shall be deemed to refer to such Affiliate
in lieu of such Purchaser. In the event that such Affiliate is so substituted as
a purchaser hereunder and such Affiliate thereafter transfers to such Purchaser
all of the Notes then held by such Affiliate, upon receipt by the Company of
notice of such transfer, wherever the word "Purchaser" is used in this Agreement
(other than in this SECTION 22), such word shall no longer be deemed to refer to
such Affiliate, but shall refer to such Purchaser, and such Purchaser shall have
all the rights of an original holder of the Notes under this Agreement.

SECTION 23. MISCELLANEOUS.

       Section 23.1. Successors and Assigns. All covenants and other agreements
contained in this Agreement by or on behalf of any of the parties hereto bind
and inure to the benefit of their respective successors and assigns (including,
without limitation, any subsequent holder of a Note) whether so expressed or
not.

       Section 23.2. Payments Due on Non-Business Days. Anything in this
Agreement or the Notes to the contrary notwithstanding, any payment of principal
of or Make-Whole Amount or interest on any Note that is due on a date other than
a Business Day shall be made on the next

                                      -49-
<PAGE>
succeeding Business Day without including the additional days elapsed in the
computation of the interest payable on such next succeeding Business Day.

       Section 23.3. Severability. Any provision of this Agreement that is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall (to the full extent permitted by law)
not invalidate or render unenforceable such provision in any other jurisdiction.

       Section 23.4. Construction. Each covenant contained herein shall be
construed (absent express provision to the contrary) as being independent of
each other covenant contained herein, so that compliance with any one covenant
shall not (absent such an express contrary provision) be deemed to excuse
compliance with any other covenant. Where any provision herein refers to action
to be taken by any Person, or which such Person is prohibited from taking, such
provision shall be applicable whether such action is taken directly or
indirectly by such Person.

       Section 23.5. Counterparts. This Agreement may be executed in any number
of counterparts, each of which shall be an original but all of which together
shall constitute one instrument. Each counterpart may consist of a number of
copies hereof, each signed by less than all, but together signed by all, of the
parties hereto.

       SECTION 23.6. GOVERNING LAW. THIS AGREEMENT SHALL BE CONSTRUED AND
ENFORCED IN ACCORDANCE WITH, AND THE RIGHTS OF THE PARTIES SHALL BE GOVERNED BY,
THE LAW OF THE STATE OF NEW YORK, EXCLUDING CHOICE-OF-LAW PRINCIPLES OF THE LAW
OF SUCH STATE THAT WOULD REQUIRE THE APPLICATION OF THE LAWS OF A JURISDICTION
OTHER THAN SUCH STATE.

       Section 23.7. Submission to Jurisdiction. The Parent Corporation and the
Company hereby irrevocably submit and consent to the jurisdiction of the Federal
court for the Southern District of New York located within the County of New
York, State of New York (or if such court lacks jurisdiction, the state courts
located therein), and irrevocably agree that all actions or proceedings relating
to this Agreement and the Notes may be litigated in such courts, and the Parent
Corporation and the Company waive any objection which either of them may have
based on improper venue or forum non conveniens to the conduct of any proceeding
in any such court and waives personal service of any and all process upon it,
and consents that all such service of process be made by delivery to it at the
address of the Parent Corporation or the Company, as the case may be, set forth
in SECTION 19 above and that service so made shall be deemed to be completed
upon actual receipt. The Parent Corporation and the Company agree that a final
judgment in any such suit, action or proceeding shall be conclusive and may be
enforced in any manner provided by law or equity. Nothing contained in this
Section shall affect the right of any holder of Notes to serve legal process in
any other manner permitted by law or to bring any action or proceeding in the
courts of any jurisdiction against the Parent Corporation or the Company or to
enforce a judgment obtained in the courts of any other jurisdiction.

                                    * * * * *

                                      -50-
<PAGE>
       The execution hereof by the Purchasers shall constitute a contract among
the Parent Corporation, the Company and the Purchasers for the uses and purposes
hereinabove set forth. This Agreement may be executed in any number of
counterparts, each executed counterpart constituting an original but all
together only one agreement.

                                      Very truly yours,

                                      SWIFT TRANSPORTATION CO., INC., an Arizona
                                        corporation

                                      By________________________________________
                                           Name:
                                           Title:

                                      SWIFT TRANSPORTATION CO., INC., a Nevada
                                        corporation

                                      By________________________________________
                                           Name:
                                           Title:

Accepted as of June ____, 2003.

                                      [VARIATION]

                                      By________________________________________
                                           Name:
                                           Title:

                                      -51-
<PAGE>
                                   SCHEDULE B

                          (to Note Purchase Agreement)

                                  DEFINED TERMS

      As used herein, the following terms have the respective meanings set forth
below or set forth in the Section hereof following such term:

      "Acquisition" means an acquisition or purchase of (in one transaction or a
series of transactions) any other Person, all or substantially all assets of any
Person or any assets of any other Person that constitute a business unit.

      "Affiliate" means, at any time, (a) with respect to any Person, any other
Person that at such time directly or indirectly through one or more
intermediaries Controls, or is Controlled by, or is under common Control with,
such first Person, and (b) with respect to the Parent Corporation, any Person
beneficially owning or holding, directly or indirectly, 10% or more of any class
of voting or equity interests of the Parent Corporation or any Subsidiary or any
corporation of which the Parent Corporation and its Subsidiaries beneficially
own or hold, in the aggregate, directly or indirectly, 10% or more of any class
of voting or equity interests. As used in this definition, "Control" means the
possession, directly or indirectly, of the power to direct or cause the
direction of the management and policies of a Person, whether through the
ownership of voting securities, by contract or otherwise. Unless the context
otherwise clearly requires, any reference to an "Affiliate" is a reference to an
Affiliate of the Parent Corporation.

      "Business Day" means (a) for the purposes of SECTION 8.6 only, any day
other than a Saturday, a Sunday or a day on which commercial banks in New York
City are required or authorized to be closed, and (b) for the purposes of any
other provision of this Agreement, any day other than a Saturday, a Sunday or a
day on which commercial banks in Phoenix, Arizona or New York, New York are
required or authorized to be closed.

      "Capital Lease" means, at any time, a lease with respect to which the
lessee is required concurrently to recognize the acquisition of an asset and the
incurrence of a liability in accordance with GAAP.

      "Capital Lease Obligations" of any Person shall mean all obligations of
such Person to pay rent or other amounts under any Capital Lease (or other
arrangement conveying the right to use) of real or personal property, or a
combination thereof, which obligations are required to be classified and
accounted for as Capital Leases on a balance sheet of such Person under GAAP,
and the amount of such obligations shall be the capitalized amount thereof
determined in accordance with GAAP.

      "Closing" is defined in SECTION 3.

      "Code" means the Internal Revenue Code of 1986, as amended from time to
time, and the rules and regulations promulgated thereunder from time to time.

      "Company" means Swift Transportation Co., Inc., an Arizona corporation, as
issuer of the Notes hereunder, and any successor thereto pursuant to the terms
hereof.

                                   SCHEDULE B
                          (to Note Purchase Agreement)
<PAGE>
      "Confidential Information" is defined in SECTION 21.

      "Consolidated EBITDA" means, for the Parent Corporation and its
Subsidiaries for any period, an amount equal to the sum of (a) Consolidated Net
Income for such period plus (b) to the extent deducted in determining
Consolidated Net Income for such period, (i) Consolidated Interest Expense, (ii)
income tax expense determined on a consolidated basis in accordance with GAAP,
(iii) depreciation and amortization determined on a consolidated basis in
accordance with GAAP, and (iv) all other non-cash charges acceptable to the
Required Holders, determined on a consolidated basis in accordance with GAAP, in
each case for such period; provided, however, that the Consolidated Net Income,
Consolidated Interest Expense, income tax expense, depreciation, amortization
and other non-cash charges of any Person or assets acquired in any Material
Acquisition during such period that accrue prior to the date such Person becomes
a Subsidiary or is merged into or consolidated with the Parent Corporation or
any Subsidiary, or such assets are acquired by the Parent Corporation or any
Subsidiary, shall be included within Consolidated EBITDA, as if the Material
Acquisition had been consummated on the first day of such period.

      "Consolidated EBITDAR" means, for the Parent Corporation and its
Subsidiaries for any period, an amount equal to the sum of (a) Consolidated
EBITDA for such period plus (b) Consolidated Lease Expense for such period.

      "Consolidated Fixed Charges" means, for the Parent Corporation and its
Subsidiaries for any period, the sum (without duplication) of (a) Consolidated
Interest Expense for such period, plus (b) Consolidated Lease Expense for such
period.

      "Consolidated Interest Expense" means, for the Parent Corporation and its
Subsidiaries for any period determined on a consolidated basis in accordance
with GAAP, the sum of (a) total interest expense, including without limitation
the interest component of any payments in respect of Capital Lease Obligations
capitalized or expensed during such period (whether or not actually paid during
such period) plus (b) the net amount payable (or minus the net amount
receivable) under Hedging Transactions during such period (whether or not
actually paid or received during such period).

      "Consolidated Lease Expense" means, for the Parent Corporation and its
Subsidiaries for any period, the aggregate amount of fixed and contingent
rentals payable with respect to leases of real and personal property (excluding
Capital Lease Obligations) determined on a consolidated basis in accordance with
GAAP for such period.

      "Consolidated Net Income" means, for the Parent Corporation and its
Subsidiaries for any period, the net income (or loss) of the Parent Corporation
and its Subsidiaries for such period determined on a consolidated basis in
accordance with GAAP, but excluding therefrom (to the extent otherwise included
therein) (a) any extraordinary gains or losses, (b) any gains attributable to
write-ups of assets, and (c) any equity interest of the Parent Corporation or
any Subsidiary of the Parent Corporation in the unremitted earnings or losses of
any Person that is not a Subsidiary, other than any equity interest in the
unremitted earnings or losses of Transplace or Trans-Mex and (d) any income (or
loss) of any Person accrued prior to the date it becomes a Subsidiary or is

                                      B-2
<PAGE>
merged into or consolidated with the Parent Corporation or any Subsidiary or the
date that such Person's assets are acquired by the Parent Corporation or any
Subsidiary.

      "Consolidated Tangible Net Worth" shall mean, as of any date, (a) the
total assets of the Parent Corporation and its Subsidiaries that would be
reflected on the Parent Corporation's consolidated balance sheet as of such date
prepared in accordance with GAAP, after eliminating all amounts properly
attributable to Minority Interests, if any, in the stock and surplus of
Subsidiaries, minus (b) the sum of (x) the total liabilities of the Parent
Corporation and its Subsidiaries that would be reflected on the Parent
Corporation's consolidated balance sheet as of such date prepared in accordance
with GAAP, (y) the amount of any write-up in the book value of any assets
resulting from a revaluation thereof or any write-up in excess of the cost of
such assets acquired reflected on the consolidated balance sheet of the Parent
Corporation as of such date prepared in accordance with GAAP and (z) the net
book amount of all assets of the Parent Corporation and its Subsidiaries that
would be classified as intangible assets on a consolidated balance sheet of the
Parent Corporation as of such date prepared in accordance with GAAP.

      "Consolidated Total Assets" means, as of any date of determination, the
total amount of all assets of the Parent Corporation and its Subsidiaries,
determined on a consolidated basis in accordance with GAAP.

      "Consolidated Total Capitalization" means, at any time, the sum of
Consolidated Tangible Net Worth and Consolidated Total Debt at such time.

      "Consolidated Total Debt" means, at any time, all Debt (excluding Hedging
Obligations) of the Parent Corporation and its Subsidiaries that would be
reflected on a consolidated balance sheet of the Parent Corporation prepared in
accordance with GAAP at such time, including Securitization Obligations of any
SPE Subsidiary whether or not such SPE Subsidiary is consolidated with the
Parent Corporation under GAAP.

      "Constituent Company" means and includes each Subsidiary of the Parent
Corporation or the Company.

      "Constituent Company Guarantors" is defined in SECTION 2.2(B). On the date
of Closing, the Constituent Company Guarantors shall be (a) Swift Corporation,
(b) Swift Leasing Co., Inc., an Arizona corporation, (c) M.S. Carriers, Inc., a
Tennessee corporation and (d) M.S. Carriers Warehousing & Distribution, Inc., a
Tennessee corporation.

      "Constituent Company Guaranty" means any Guaranty of any Constituent
Company with respect to the payment of the Notes and all other sums due and
owing by the Company under this Agreement, which Guaranty shall be in form and
substance reasonably satisfactory to the Required Holders.

      "Credit Agreement" means that certain Revolving Credit Agreement, dated as
of November 21, 2002, among the Company, the Parent Corporation, SunTrust Bank,
as administrative agent, Wells Fargo Bank, N.A., and KeyBank National
Association, as co-syndication agents, U.S. Bank National Association and
LaSalle Bank National Association, as

                                      B-3
<PAGE>
co-documentation agents, and certain lenders from time to time party thereto, as
amended, modified, supplemented, refinanced or replaced, in whole or in part,
from time to time.

      "Debt" with respect to any Person means, at any time, without duplication,

            (a) its liabilities for borrowed money and its redemption
      obligations in respect of Redeemable Preferred Stock;

            (b) its liabilities for the deferred purchase price of property
      acquired by such Person (excluding accounts payable arising in the
      ordinary course of business but including all liabilities created or
      arising under any conditional sale or other title retention agreement with
      respect to any such property);

            (c) all liabilities appearing on its balance sheet in accordance
      with GAAP in respect of Capital Leases;

            (d) all liabilities for borrowed money secured by any Lien with
      respect to any property owned by such Person (whether or not it has
      assumed or otherwise become liable for such liabilities); and

            (e) all its liabilities in respect of letters of credit or
      instruments serving a similar function issued or accepted for its account
      by banks and other financial institutions (whether or not representing
      obligations for borrowed money);

            (f) Hedging Obligations of such Person;

            (g) Off-Balance Sheet Liabilities of such Person;

            (h) Securitization Obligations of such Person; and

            (i) any Guaranty of such Person with respect to liabilities of a
      type described in any of clauses (a) through (h) hereof.

Debt of any Person shall include all obligations of such Person of the character
described in clauses (a) through (i) to the extent such Person remains legally
liable in respect thereof notwithstanding that any such obligation is deemed to
be extinguished under GAAP.

      "Default" means an event or condition the occurrence or existence of which
would, with the lapse of time or the giving of notice or both, become an Event
of Default.

      "Default Rate" means, with respect to Notes of either series, that rate of
interest that is the greater of (i) 2.0% per annum above the rate of interest
stated in clause (a) of the first paragraph of the Note of such series or (ii)
2.0% over the rate of interest publicly announced by The Bank of New York (or
its successor) in New York, New York as its "base" or "prime" rate.

                                      B-4
<PAGE>
      "Environmental Laws" means any and all Federal, state, local, and foreign
statutes, laws, regulations, ordinances, rules, judgments, orders, decrees,
permits, concessions, grants, franchises, licenses, agreements or governmental
restrictions relating to pollution and the protection of the environment or the
release of any materials into the environment, including but not limited to
those related to hazardous substances or wastes, air emissions and discharges to
waste or public systems.

      "ERISA" means the Employee Retirement Income Security Act of 1974, as
amended from time to time, and the rules and regulations promulgated thereunder
from time to time in effect.

      "ERISA Affiliate" means any trade or business (whether or not
incorporated) that is treated as a single employer together with the Parent
Corporation under Section 414 of the Code.

      "Event of Default" is defined in SECTION 12.

      "Exchange Act" means the Securities Exchange Act of 1934, as amended.

      "GAAP" means generally accepted accounting principles as in effect from
time to time in the United States of America.

      "Governmental Authority" means

            (a) the government of

                  (i) the United States of America or any State or other
            political subdivision thereof, or

                  (ii) any jurisdiction in which the Parent Corporation or any
            Subsidiary conducts all or any part of its business, or which
            asserts jurisdiction over any properties of the Parent Corporation
            or any Subsidiary, or

            (b) any entity exercising executive, legislative, judicial,
      regulatory or administrative functions of, or pertaining to, any such
      government.

      "Guarantor" means, individually, the Parent Corporation or any Constituent
Company Guarantor, as the context requires, and "Guarantors" means,
collectively, the Parent Corporation and the Constituent Company Guarantors.

      "Guaranty" means, with respect to any Person, any obligation (except the
endorsement in the ordinary course of business of negotiable instruments for
deposit or collection) of such Person guaranteeing or in effect guaranteeing any
Debt, dividend or other obligation of any other Person in any manner, whether
directly or indirectly, including (without limitation) obligations incurred
through an agreement, contingent or otherwise, by such Person:

                                      B-5
<PAGE>
            (a) to purchase such Debt or obligation or any property constituting
      security therefor;

            (b) to advance or supply funds (i) for the purchase or payment of
      such Debt or obligation, or (ii) to maintain any working capital or other
      balance sheet condition or any income statement condition of any other
      Person or otherwise to advance or make available funds for the purchase or
      payment of such Debt or obligation;

            (c) to lease properties or to purchase properties or services
      primarily for the purpose of assuring the owner of such Debt or obligation
      of the ability of any other Person to make payment of the Debt or
      obligation; or

            (d) otherwise to assure the owner of such Debt or obligation against
      loss in respect thereof.

In any computation of the Debt or other liabilities of the obligor under any
Guaranty, the Debt or other obligations that are the subject of such Guaranty
shall be assumed to be direct obligations of such obligor.

      "Hazardous Material" means any and all pollutants, toxic or hazardous
wastes or any other substances, including all substances listed in or regulated
in any Environmental Law, that might pose a hazard to health or safety, the
removal of which may be required or the generation, manufacture, refining,
production, processing, treatment, storage, handling, transportation, transfer,
use, disposal, release, discharge, spillage, seepage, or filtration of which is
or shall be restricted, regulated, prohibited or penalized by any applicable law
(including, without limitation, asbestos, urea formaldehyde foam insulation and
polychlorinated biphenyls).

      "Hedging Obligations" of any Person shall mean any and all obligations of
such Person, whether absolute or contingent and howsoever and whensoever
created, arising, evidenced or acquired under (a) any and all Hedging
Transactions, (b) any and all cancellations, buy backs, reversals, terminations
or assignments of any Hedging Transactions and (c) any and all renewals,
extensions and modifications of any Hedging Transactions and any and all
substitutions for any Hedging Transactions.

      "Hedging Transaction" of any Person means any transaction (including an
agreement with respect thereto) now existing or hereafter entered into by such
Person that is a rate swap, basis swap, forward rate transaction, commodity
swap, interest rate option, foreign exchange transaction, cap transaction, floor
transaction, collateral transaction, forward transaction, currency swap
transaction, cross-currency rate swap transaction, currency option or any other
similar transaction (including any option with respect to any of these
transactions) or any combination thereof, whether linked to one or more interest
rates, foreign currencies, commodity prices, equity prices or other financial
measures.

      "holder" means, with respect to any Note, the Person in whose name such
Note is registered in the register maintained by the Company pursuant to SECTION
14.1.

                                      B-6
<PAGE>
      "Institutional Investor" means (a) any original purchaser of a Note, (b)
any holder of a Note holding more than 5% of the aggregate principal amount of
the Notes then outstanding, and (c) any bank, trust company, savings and loan
association or other financial institution, any pension plan, any investment
company, any insurance company, any broker or dealer, or any other similar
financial institution or entity, regardless of legal form.

      "Intercompany Obligations" is defined in SECTION 11.6.

      "Lien" means, with respect to any Person, any mortgage, lien, pledge,
charge, security interest or other encumbrance, or any interest or title of any
vendor, lessor, lender or other secured party to or of such Person under any
conditional sale or other title retention agreement or Capital Lease, upon or
with respect to any property or asset of such Person (including in the case of
stock, stockholder agreements, voting trust agreements and all similar
arrangements).

      "Make-Whole Amount" is defined in SECTION 8.6.

      "Material" means material in relation to the business, operations,
affairs, financial condition, assets, properties, or prospects of the Parent
Corporation and its Subsidiaries (including, without limitation, the Company and
any Constituent Company Guarantor), taken as a whole.

      "Material Acquisition" means an Acquisition of (a) a Person that, after
giving effect to such Acquisition, would constitute a Material Subsidiary or (b)
assets that, if such assets were deemed to be acquired by a newly-formed
Subsidiary with no other assets, liabilities or operations, such Subsidiary
would constitute a Material Subsidiary.

      "Material Adverse Effect" means a material adverse effect on (a) the
business, operations, affairs, financial condition, assets, properties or
prospects of the Parent Corporation and its Subsidiaries (including, without
limitation, the Company and any Constituent Company Guarantor), taken as a
whole, or (b) the ability of the Company to perform its obligations under this
Agreement and the Notes, or (c) the ability of the Parent Corporation to perform
its obligations under the Parent Guaranty, or (d) the validity or enforceability
of this Agreement (including, without limitation, the Parent Guaranty), the
Notes or the Constituent Company Guaranty.

      "Material Subsidiary" means any Subsidiary, existing on the date of the
Closing or created or acquired thereafter, if (a) the portion of gross revenues
or Consolidated Net Income which was contributed by such Subsidiary during the
12-month period ending on the last day of the immediately preceding fiscal
quarter of the Parent Corporation equals or exceeds 5% of gross revenues or
Consolidated Net Income, respectively, for such 12-month period, or (b) the
assets of such Subsidiary as at the end of the immediately preceding fiscal
quarter of the Parent Corporation equal or exceed 5% of Consolidated Total
Assets as of the end of such fiscal quarter, or (c) such Subsidiary is a
"Material Subsidiary" under the Credit Agreement.

      "Memorandum" is defined in SECTION 5.1.3.

                                      B-7
<PAGE>
      "Minority Interests" means any shares of stock of any class of a
Subsidiary (other than directors' qualifying shares as required by law) that are
not owned by the Parent Corporation and/or one or more of its Subsidiaries.
Minority Interests shall be valued by valuing Minority Interests constituting
preferred stock at the voluntary or involuntary liquidating value of such
preferred stock, whichever is greater, and by valuing Minority Interests
constituting common stock at the book value of capital and surplus applicable
thereto adjusted, if necessary, to reflect any changes from the book value of
such common stock required by the foregoing method of valuing Minority Interests
in preferred stock.

      "Multiemployer Plan" means any Plan that is a "multiemployer plan" (as
such term is defined in Section 4001(a)(3) of ERISA).

      "Non-U.S. Pension Plan" means any plan, fund, or other similar program
established or maintained outside the United States of America by the Parent
Corporation or any one or more of its Subsidiaries primarily for the benefit of
employees of the Parent Corporation or such Subsidiary residing outside the
United States of America, which plan, fund or other similar program provides for
retirement income for such employees or a deferral of income for such employees
in contemplation of retirement and is not subject to ERISA or the Code.

      "Note Documents" means and includes means this Agreement (including the
Schedules and Exhibits hereto), the Notes, the Constituent Company Guaranty and
all other instruments, agreements, Guaranties, documents and writings executed
in connection with any of the foregoing, including, without limitation,
agreements that provide for credit support or other collateral security for any
of the obligations arising in connection with any of the foregoing.

      "Notes" is defined in SECTION 1.

      "Off-Balance Sheet Liabilities" of any Person shall mean (a) any
repurchase obligation or liability of such Person with respect to accounts or
notes receivable sold by such Person, (b) any liability of such Person under any
sale and leaseback transactions that do not create a liability on the balance
sheet of such Person, (c) any Synthetic Lease Obligation, (d) Securitization
Obligations which do not constitute a liability on the balance sheet of such
Person or (e) any obligation arising with respect to any other transaction
(including a Securitization Transaction) which is the functional equivalent of
or takes the place of borrowing but which does not constitute a liability on the
balance sheet of such Person.

      "Officer's Certificate" means a certificate of a Senior Financial Officer
or of any other officer of the Parent Corporation or the Company whose
responsibilities extend to the subject matter of such certificate.

      "Parent Corporation" means Swift Transportation Co., Inc., a Nevada
corporation, and any successor thereto pursuant to the terms hereof.

      "Parent Guaranty" is defined in SECTION 2.2(A).

                                      B-8
<PAGE>
      "PBGC" means the Pension Benefit Guaranty Corporation referred to and
defined in ERISA or any successor thereto.

      "Person" means an individual, partnership, corporation, limited liability
company, association, trust, unincorporated organization, or a government or
agency or political subdivision thereof.

      "Plan" means an "employee benefit plan" (as defined in Section 3(3) of
ERISA) that is or, within the preceding five years, has been established or
maintained, or to which contributions are or, within the preceding five years,
have been made or required to be made, by the Parent Corporation or any ERISA
Affiliate or with respect to which the Parent Corporation or any ERISA Affiliate
may have any liability.

      "Preferred Stock" means any class of capital stock of a corporation that
is preferred over any other class of capital stock of such corporation as to the
payment of dividends or the payment of any amount upon liquidation or
dissolution of such corporation.

      "Priority Debt" means (a) all Debt of the Parent Corporation, Swift
Corporation and the Company secured by Liens created, incurred or outstanding
pursuant to SECTIONS 10.5(F), 10.5(I) (to the extent that such Debt refinances
Debt permitted by SECTION 10.5(F)) and 10.5(J), and (b) all Debt of the Parent
Corporation's Subsidiaries, except for:

            (i) unsecured Debt of Swift Corporation and the Company;

            (ii) the Constituent Company Guaranties;

            (iii) unsecured Guaranties of Subsidiaries issued in favor of the
      lenders pursuant to the terms of the Credit Agreement, provided that
      substantially similar Constituent Company Guaranties are delivered to the
      holders of the Notes pursuant to the requirements of SECTION 9.1.8;

            (iv) unsecured Guaranties of Subsidiaries issued in favor of other
      third-party creditors guaranteeing Debt of the Parent Corporation or the
      Company which is permitted by the applicable terms of this Agreement,
      provided that substantially similar Constituent Company Guaranties are
      substantially concurrently delivered to the holders of the Notes or are
      otherwise in effect from each such guaranteeing Subsidiary;

            (v) Debt and Redeemable Preferred Stock owing to the Parent
      Corporation or Wholly-owned Subsidiaries; and

            (vi) Securitization Obligations of Swift Receivables Co., Inc., a
      Delaware corporation, or its successors that are SPE Subsidiaries or
      another SPE Subsidiary, whether or not consolidated with the Parent
      Corporation under GAAP, in an amount not to exceed $200,000,000 at anytime
      outstanding, provided, that such Securitization Obligations are otherwise
      permitted by SECTION 10.1 and each other applicable term of this
      Agreement.

                                      B-9
<PAGE>
      "property" or "properties" means, unless otherwise specifically limited,
real or personal property of any kind, tangible or intangible, choate or
inchoate.

      "Purchasers" is defined in the first paragraph of this Agreement.

      "QPAM Exemption" means Prohibited Transaction Class Exemption 84-14 issued
by the United States Department of Labor.

      "Receivables" means accounts receivable (including, without limitation,
all rights to payment created or arising from the sales of goods, leases of
goods or the rendition of services, no matter how evidenced and whether or not
earned by performance).

      "Redeemable" means, with respect to the capital stock of any Person, each
share of such Person's capital stock that is:

            (a) redeemable, payable or required to be purchased or otherwise
      retired or extinguished, or convertible into Debt of such Person (i) at a
      fixed or determinable date, whether by operation of sinking fund or
      otherwise, (ii) at the option of any Person other than such Person, or
      (iii) upon the occurrence of a condition not solely within the control of
      such Person; or

            (b) convertible into other Redeemable capital stock.

      "Required Holders" means, at any time, the holders of more than 50% in
principal amount of the Notes at the time outstanding (exclusive of Notes then
owned by the Parent Corporation or any of its Affiliates).

      "Responsible Officer" means any Senior Financial Officer and any other
officer of the Parent Corporation or the Company with responsibility for the
administration of the relevant portion of this Agreement.

      "Securities Act" means the Securities Act of 1933, as amended from time to
time.

      "Securitization Obligations" means, with respect to any Person, all
payment and repayment obligations of such Person undertaken in connection with a
Securitization Transaction.

      "Securitization Transaction" means any transfer by the Company or any
Subsidiary of Receivables or interests therein and all collateral securing such
Receivables, all contracts and contract rights and all guarantees or other
obligations in respect of such Receivables, all other assets that are
customarily transferred or in respect of which security interests are
customarily granted in connection with asset securitization transactions
involving such Receivables and all proceeds of any of the foregoing (a) to a
trust, partnership, limited liability company, corporation or other entity
(other than the Company or a Subsidiary which is not a SPE Subsidiary), which
transfer is funded in whole or in part, directly or indirectly, by the
incurrence or issuance by the transferee or any successor transferee of Debt or
other securities that are to receive payments

                                      B-10
<PAGE>
from, or that represent interests in, the cash flow derived from such
Receivables or interests in Receivables, which Debt and securities are, for
purposes of this Agreement, included in Consolidated Total Debt, or (b) directly
to one or more investors or other purchasers (other than the Company or any
Subsidiary), in a transaction which is not of a type described in (a) above,
and, in the case of both (a) and (b) above, which are in the good faith opinion
of a Senior Financial Officer of the Parent Corporation for fair value and in
the best interests of the Parent Corporation and its Subsidiaries. The "amount"
or "principal amount" of any Securitization Obligations arising in connection
with any Securitization Transaction shall be deemed at any time to be (x) in the
case of a transaction described in clause (a) of the preceding sentence, the
aggregate principal or stated amount of the Debt or other securities referred to
in such clause or, if there shall be no such principal or stated amount, the
uncollected amount of the Receivables transferred pursuant to such
Securitization Transaction net of any such Receivables that have been written
off as uncollectible, and (y) in the case of a transaction described in clause
(b) of the preceding sentence, the aggregate outstanding principal amount of the
Debt, if any, secured by Liens on the subject Receivables.

      "Senior Financial Officer" means the chief financial officer, principal
accounting officer, treasurer or comptroller of the Parent Corporation or the
Company, as applicable.

      "Series A Notes" is defined in SECTION 1.

      "Series B Notes" is defined in SECTION 1.

      "Solvent" means, when used with respect to any Person, that at the time of
determination: (a) the fair value of its assets (both at fair valuation and at
present fair saleable value on an orderly basis) is in excess of the total
amount of its liabilities, including contingent obligations, and (b) it is then
able and expects to be able to pay its debt as they mature, and (c) it has
capital sufficient to carry on its business as conducted and as proposed to be
conducted.

      "SPE Subsidiary" means any Subsidiary formed solely for the purpose of,
and that engages only in, one or more Securitization Transactions.

      "Subsidiary" means, as to any Person, any corporation, association or
other business entity in which such Person or one or more of its Subsidiaries or
such Person and one or more of its Subsidiaries owns sufficient equity or voting
interests to enable it or them (as a group) ordinarily, in the absence of
contingencies, to elect a majority of the directors (or Persons performing
similar functions) of such entity, and any partnership or joint venture if more
than a 50% interest in the profits or capital thereof is owned by such Person or
one or more of its Subsidiaries or such Person and one or more of its
Subsidiaries (unless such partnership can and does ordinarily take major
business actions without the prior approval of such Person or one or more of its
Subsidiaries). Unless the context otherwise clearly requires, any reference to a
"Subsidiary" is a reference to a Subsidiary of the Parent Corporation.

      "Subsidiary Stock" means, with respect to any Person, the stock,
membership interests or other equity interests (or any options or warrants to
purchase stock, membership interests or

                                      B-11
<PAGE>
other equity interests or other Securities exchangeable for or convertible into
stock, membership interests or other equity interests) of any Subsidiary of such
Person.

      "Swift Corporation" means Swift Transportation Corporation, a Nevada
corporation and direct owner and holder of 100% of the issued and outstanding
stock of the Company.

      "Synthetic Lease" means a lease transaction under which the parties intend
that (a) the lease will be treated as an "operating lease" by the lessee
pursuant to Statement of Financial Accounting Standards No. 13, as amended and
(b) the lessee will be entitled to various tax and other benefits ordinarily
available to owners (as opposed to lessees) of like property.

      "Synthetic Lease Obligations" shall means, with respect to any Person, the
sum of (a) all remaining rental obligations of such Person as lessee under
Synthetic Leases which are attributable to principal and, without duplication,
(b) all rental and purchase price payment obligations of such Person under such
Synthetic Leases assuming such Person exercises the option to purchase the
leased property at the end of the lease term.

      "Trans-Mex" means Trans-Mex, Inc. S.A. de C.V., a Mexican corporation in
which, as of the date of Closing, the Parent Corporation and its Subsidiaries
own a 49% equity interest.

      "Transplace" means Transplace.com LLC, a Nevada limited liability company
in which, as of the date of Closing, the Parent Corporation and its Subsidiaries
own a 29% equity interest.

      "Wholly-owned Subsidiary" means, at any time, any Subsidiary one hundred
percent (100%) of all of the equity interests (except directors' qualifying
shares) and voting interests of which are owned by any one or more of the Parent
Corporation and the Parent Corporation's other Wholly-owned Subsidiaries at such
time.

                                      B-12

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00055-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00055-of-00352.parquet"}]]