Document:

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                                                                  EXHIBIT 10.20

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR CERTAIN REDACTED PROVISIONS OF
THIS AGREEMENT. THE REDACTED PROVISIONS ARE IDENTIFIED BY THREE ASTERISKS
ENCLOSED BY BRACKETS AND UNDERLINED. THE CONFIDENTIAL PORTION HAS BEEN FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

                            MASTER SERVICES AGREEMENT

                                 by and between

                                   EXULT, INC.

                                       and

                               UNISYS CORPORATION

                           Dated as of August 28, 2000

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                                TABLE OF CONTENTS

<TABLE>
<S>                                                                                                         <C>
ARTICLE 1   AGREEMENT FRAMEWORK..............................................................................1

            1.01        Purpose..............................................................................1

            1.02        Master Agreement.....................................................................1

            1.03        Service Agreements...................................................................1

ARTICLE 2   DEFINITIONS AND INTERPRETATION...................................................................2

            2.01        Definitions..........................................................................2

            2.02        Interpretation.......................................................................2

ARTICLE 3   TERM. ...........................................................................................2

            3.01        Master Agreement.....................................................................2

            3.02        Service Agreements...................................................................2

            3.03        Renewal..............................................................................2

ARTICLE 4   SERVICES. .......................................................................................3

            4.01        Generally............................................................................3

            4.02        [***]*...............................................................................3

            4.03        Use of Facilities....................................................................3

            4.04        Exult Personnel......................................................................3

            4.05        Market Awareness.....................................................................4

            4.06        Turnover.............................................................................4

            4.07        Human Resources......................................................................4

            4.08        Steering Committee...................................................................4

            4.09        Disaster Recovery....................................................................4

            4.10        Account Management...................................................................4

            4.11        Compliance With Laws.................................................................5

            4.12        Transition Functions.................................................................5

            4.13        Subcontractors.......................................................................5

            4.14        Services to Competitors..............................................................5

ARTICLE 5   CONTRACT ADMINISTRATION..........................................................................6

            5.01        Transferred Agreements...............................................................6

            5.02        Managed Agreements...................................................................6
</TABLE>

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<TABLE>
<S>                                                                                                         <C>
            5.03        Unisys Obligations...................................................................6

ARTICLE 6   SERVICE LEVELS...................................................................................6

            6.01        Quality and Service Levels...........................................................6

            6.02        Service Levels.......................................................................7

            6.03        Reporting............................................................................7

            6.04        Remedies.............................................................................7

            6.05        Exclusions...........................................................................7

            6.06        Baseline Surveys.....................................................................8

            6.07        Periodic Surveys.....................................................................8

            6.08        [***]*...............................................................................8

            6.09        Benchmarking Report and Adjustments..................................................8

ARTICLE 7   CHANGES IN THE SERVICES..........................................................................9

            7.01        Right To Make Changes................................................................9

            7.02        Changes in Law.......................................................................9

ARTICLE 8   TRANSITION PLAN.................................................................................10

ARTICLE 9   NEW SERVICES....................................................................................10

            9.01        Exult Opportunity...................................................................10

            9.02        Exult Cooperation with Third Parties................................................10

ARTICLE 10  CUSTOMER RESPONSIBILITIES.......................................................................10

            10.01       Unisys Managers.....................................................................10

            10.02       Unisys Responsibilities.............................................................11

            10.03       Unisys Resources....................................................................11

            10.04       Use of Unisys Facilities & Resources................................................12

            10.05       Use of Services.....................................................................12

ARTICLE 11  SOFTWARE AND PROPRIETARY RIGHTS.................................................................12

            11.01       Rights in Residuals.................................................................12

            11.02       Exult Proprietary Software..........................................................13

            11.03       Unisys Proprietary Software.........................................................13

            11.04       New Intellectual Property...........................................................13

            11.05       License.............................................................................12
</TABLE>

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<TABLE>
<S>                                                                                                        <C>
ARTICLE 12  PAYMENTS TO EXULT...............................................................................13

            12.01       Fees................................................................................13

            12.02       Charges All-Inclusive...............................................................13

            12.03       Taxes...............................................................................13

            12.04       Verification of Information.........................................................13

            12.05       Pro-ration..........................................................................14

            12.06       Equitable Adjustment................................................................14

            12.07       Recordkeeping and Record Retention..................................................14

ARTICLE 13  AUDITS. ........................................................................................14

            13.01       Audit Rights........................................................................14

            13.02       Audit Responses.....................................................................15

            13.03       Exult Audits........................................................................15

            13.04       Survival............................................................................15

            13.05       Audit Procedures....................................................................15

            13.06       Audit Costs.........................................................................16

ARTICLE 14  DATA AND REPORTS................................................................................16

            14.01       Provision of Data...................................................................16

            14.02       Inspection of Reports...............................................................16

            14.03       Correction of Errors................................................................16

ARTICLE 15  CONFIDENTIALITY AND SECURITY....................................................................16

            15.01       General Obligations.................................................................16

            15.02       Exclusions..........................................................................17

            15.03       Unauthorized Acts...................................................................17

            15.04       Injunctive Relief...................................................................18

            15.05       Data Protection.....................................................................18

            15.06       Publicity...........................................................................18

ARTICLE 16  REPRESENTATIONS AND ADDITIONAL COVENANTS........................................................18

            16.01       By Unisys...........................................................................18

            16.02       By Exult............................................................................19

            16.03       Mutual..............................................................................19

            16.04       Regulations.........................................................................19

            16.05       Disclaimers.........................................................................19

            16.06       Year 2000 Readiness.................................................................20
</TABLE>

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<TABLE>
<S>                                                                                                         <C>
ARTICLE 17  DISPUTE RESOLUTION..............................................................................20

            17.01       Continued Performance...............................................................20

            17.02       Service Agreement...................................................................20

            17.03       Master Agreement....................................................................21

            17.04       Executive Review....................................................................21

            17.05       Mediation...........................................................................21

            17.06       Confidentiality.....................................................................21

            17.07       Arbitration.........................................................................21

            17.08       Certain Disputes....................................................................22

            17.09       Fees and Costs......................................................................22

            17.10       Provisional Remedies................................................................22

ARTICLE 18  TERMINATION.....................................................................................23

            18.01       By Exult............................................................................23

            18.02       By Unisys...........................................................................23

            18.03       Termination Assistance..............................................................25

            18.04       Exit Rights.........................................................................26

ARTICLE 19  INDEMNITIES.....................................................................................26

            19.01       Infringement........................................................................26

            19.02       Personal Injury and Property Damage By Exult........................................27

            19.03       Personal Injury and Property Damage By Unisys.......................................27

            19.04       By Unisys...........................................................................27

            19.05       By Exult............................................................................27

            19.06       Indemnification Procedures..........................................................28

            19.07       Subrogation.........................................................................28

ARTICLE 20  DAMAGES. .......................................................................................28

            20.01       Direct Damages......................................................................28

            20.02       Consequential Damages...............................................................29

            20.03       Exclusions and Limitations..........................................................29

            20.04       Mitigation..........................................................................30

            20.05       Acknowledgment......................................................................30

ARTICLE 21  INSURANCE. .....................................................................................30

            21.01       Insurance...........................................................................30

            21.02       Insurance Documentation.............................................................30
</TABLE>

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<TABLE>
<S>                                                                                                         <C>
            21.03       Risk of Loss........................................................................31

ARTICLE 22  MISCELLANEOUS PROVISIONS........................................................................31

            22.01       Notices.............................................................................31

            22.02       Assignment and Third Party Beneficiaries............................................31

            22.03       Relationship........................................................................32

            22.04       Severability and Waivers............................................................32

            22.05       Survival............................................................................32

            22.06       Governing Law.......................................................................32

            22.07       Sole and Exclusive Venue............................................................32

            22.08       Force Majeure.......................................................................33

            22.09       Nonperformance......................................................................33

            22.10       Right to Provide Services...........................................................33

            22.11       Right to Manage Performance.........................................................34

            22.12       Further Assurances..................................................................34

            22.13       Solicitation........................................................................34

            22.14       Limitation Period...................................................................34

            22.15       Negotiated Terms....................................................................34

            22.16       Consents, Approvals and Requests....................................................34

            22.17       Entire Agreement; Amendments; Counterparts..........................................34
</TABLE>

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                 TABLE OF SCHEDULES TO MASTER SERVICES AGREEMENT

Schedule A                 Description of Services (US)
Schedule B                 Service Levels (US)
Schedule C                 Fees and Invoicing(US)
Schedule D                 Approved Subcontractors (US)
Schedule E                 Designated Unisys Competitors
Schedule F                 Global Transition Plan
Schedule G                 Transition Plan (US)
Schedule H                 Projects
Schedule I                 Listed Unisys Competitors
Schedule J                 Employee Transfer Arrangements (US)
Schedule K                 Change Control Management
Schedule L                 N/A
Schedule M                 N/A
Schedule N                 Termination Assistance
Schedule O                 Service Delivery Venues
Schedule P                 Master Subcontract Addendum No. 1 -
                           (This item is part of a non-material contract
                           included with this agreement for convenience only,
                           and is not filed with the Commission.)
Schedule Q                 Form of US Service Agreement
Schedule R                 N/A
Schedule W                 N/A
Schedule Z                 Definitions

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           This MASTER SERVICES AGREEMENT (this "Master Agreement"), dated as of
August 28, 2000 (the "Master Agreement Date"), is by and between EXULT, INC.
("EXULT") and UNISYS CORPORATION ("UNISYS").

           WHEREAS, Unisys has engaged Exult to provide human resources and
related services pursuant to this Master Agreement and the Service Agreements;

           WHEREAS, Exult has agreed to provide such Services in accordance with
the terms of this Master Agreement and the Service Agreements for a term of
seven (7) years;

           WHEREAS, Unisys has agreed to provide, and Exult has agreed to use
internally and in its offerings to Exult clients, certain Unisys services and
products pursuant to the Master Subcontract; and

           WHEREAS, the purpose of this Master Agreement is to establish the
general terms and conditions applicable to Exult's provision of such services to
Unisys for which the Parties shall enter into specific Service Agreements.

           NOW, THEREFORE, for and in consideration of the agreements set forth
below, Exult and Unisys hereby agree as follows:

ARTICLE 1 AGREEMENT FRAMEWORK.

           1.01 Purpose. The purpose of this Master Agreement is to establish
the general terms and conditions applicable to Exult's provision of human
resources services to Unisys and Unisys Affiliates for which Exult and Unisys
shall have entered into one or more Service Agreements to this Master Agreement
describing the responsibilities and obligations specific to the applicable
services, in the case of United States based services in a form substantially
similar to the form attached as Schedule P (the "US Service Agreement"), in the
case of services based in the United Kingdom and other countries, in forms
consistent with this Agreement (the "UK Service Agreement" and Other Service
Agreement(s)," respectively) (collectively, the "Service Agreements"). Unisys
and Exult intend that the Schedules for each Service Agreement will be in
substantially the form of the Schedules for the US Service Agreement.

           1.02 Master Agreement. This Master Agreement is intended to serve as
a framework for the provision of services under one or more Service Agreements.
Exult shall only be obligated to provide those services agreed to under an
executed Service Agreement.

           1.03 Service Agreements. Unless otherwise agreed by Unisys and Exult,
and subject to Section 4.02, below, Exult shall be Unisys provider of, and
Unisys shall purchase from Exult, Unisys requirements for the services described
in Schedule A to the US Service Agreement and the Other Service Agreements.
Unisys and Exult shall enter into one or more Service Agreements covering Unisys
service requirements. The Service Agreements shall reference and incorporate
this Master Agreement, and the terms and conditions set forth in this Master
Agreement shall govern Exult's provision of services under the Service
Agreements, except as they may be amended by a Service Agreement in respect of
the specific services being provided under such Service Agreement.

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ARTICLE 2 DEFINITIONS AND INTERPRETATION.

           2.01 Definitions. Unless otherwise defined in this Master Agreement
or a Service Agreement, the defined terms used in this Master Agreement and the
Service Agreements shall have the meanings specified in Schedule Z.

           2.02 Interpretation. In this Master Agreement and the Schedules to
this Master Agreement, the Schedules to this Master Agreement shall be
incorporated into and deemed part of this Master Agreement and all references to
this Master Agreement shall include the Schedules to this Master Agreement.

(1)     The Article and Section headings, Table of Contents and Table of
        Schedules are for reference and convenience only and shall not be
        considered in the interpretation of this Master Agreement or the Service
        Agreements.

(2)     In the event of a conflict between the terms of this Master Agreement
        and the terms of a Service Agreement, the terms of the Service Agreement
        shall prevail; provided that no Service Agreement may amend the Master
        Term.

ARTICLE 3 TERM.

           3.01 Master Agreement. The term of this Master Agreement shall
commence on the Master Agreement Date and continue until [***]* (the "Initial
Master Agreement Expiration Date"), unless otherwise renewed pursuant to Section
3.03 or terminated pursuant to the terms of this Master Agreement (the "Master
Term").

           3.02 Service Agreements. Exult shall provide the Services during the
applicable Service Agreement Terms. The Initial Service Agreement Expiration
Date with respect to each Service Agreement shall be the same as the Initial
Master Agreement Expiration Date.

           3.03 Renewal. This Master Agreement may be renewed for up to [***]*
(each a "Renewal Period") in accordance with this Section. Unless this Master
Agreement is terminated earlier, Unisys shall notify Exult pursuant to this
Section at least one hundred eighty (180) days prior to the Initial Master
Agreement Expiration Date, or if in the first Renewal Period at least one
hundred eighty (180) days prior to the expiration date of the first Renewal
Period, as to whether Unisys desires to renew this Master Agreement. If Unisys
elects in writing to renew, is not then in default of any of its material
obligations, and no circumstances exist that would constitute material default
with notice or lapse of time, or both, at the time of notice or on the effective
date of renewal, then

(1)     the Agreement shall be renewed for the relevant Renewal Period, upon the
        terms then in effect, including all changes and amendments, at the rates
        in effect as of the Initial Master Agreement Expiration Date or the
        expiration date of the first Renewal Period, as applicable, plus any
        adjustments determined by operation or application of the relevant
        adjustment or other provisions of the applicable Service Agreements and
        Schedules for the period following the relevant expiration date; or if
        no such timely notice is given, then,

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(2)     this Master Agreement shall extend for up to an additional [***]* after
        the Initial Master Agreement Expiration Date or the expiration date of
        the first Renewal Period, as applicable, during which time Exult shall
        provide the Termination Assistance Services in accordance with Section
        18.04, below.

ARTICLE 4 SERVICES.

           4.01 Generally. Commencing as of the Master Agreement Effective Date
and continuing throughout the Master Term, Exult shall be the provider of, and
Unisys shall purchase from Exult, Unisys requirements for the services described
in Schedule A to the US Service Agreement, all upon and subject to the terms and
conditions set forth in this Master Agreement and the Service Agreements. The
Parties' respective functions and responsibilities include those (i) described
by the text, (ii) identified by charts or responsibility matrices, and (iii) not
specifically described but required for proper performance and inherent in or
necessary sub-tasks for the functions described (unless specifically excluded by
the text, charts or responsibility matrices).

           4.02 [***]*

           4.03 Use of Facilities.

           Each Party, while on the other Party's premises, shall (a) comply
with the reasonable requests, standard rules and regulations of such Party
regarding safety and health and personal and professional conduct generally
applicable to such premises and (b) otherwise conduct themselves in a
businesslike manner.

           4.04 Exult Personnel.

(1)     During the Master Term, Exult shall maintain an individual (the "Exult
        Global Client Executive") who shall serve as the primary Exult
        representative under this Master Agreement and the Service Agreements.
        The Exult Global Client Executive (or in his or her absence, his or her
        designee) shall (a) have overall responsibility for managing and
        coordinating the performance of Exult's obligations under this Master
        Agreement and the Service Agreements and (b) be authorized to act for
        and on behalf of Exult with respect to all matters relating to this
        Master Agreement and the Service Agreements.

(2)     During each Service Agreement Term, Exult shall maintain an individual
        (each, a "Exult Country Client Executive") to serve as the primary Exult
        representative under each Service Agreement. The Exult Country Client
        Executives (or in their absence, their designee(s)) shall (a) have
        overall responsibility for managing and coordinating the performance of
        Exult's obligations under the Service Agreements and (b) be authorized
        to act for and on behalf of Exult with respect to all matters relating
        to the Service Agreements.

(3)     If, in the performance of the Services, Exult in good faith believes
        that the health or safety of the Project Staff is placed at unacceptable
        risk by a Force Majeure Event, Exult reserves the right to suspend the
        performance of the Services (without incurring liability) in accordance
        with Section 22.08, below (concerning Force Majeure Events).

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* Confidential information has been omitted.

                                       3
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(4)     Exult shall appoint individuals to the Project Staff with suitable
        training and skills to perform the Services.

           4.05 Market Awareness. Exult shall periodically meet with Unisys in
accordance with the procedures agreed upon by the Parties to inform Unisys of
any new human resource and related services that Exult is developing or trends
of which Exult becomes aware that could reasonably be expected to have an impact
on Unisys business. The acquisition and implementation of any such new service
by Exult at Unisys request shall be through the process set forth in Section
9.01.

           4.06 Turnover. If unusual turnover or attrition among Unisys
employees during the Transition Period for any Service Agreement materially and
adversely affects Unisys ability to deliver compensation, benefits or recruiting
services prior to the relevant Process Take On Date, then upon Unisys request,
Exult shall use its best efforts to minimize the disruption in those services by
accelerating or re-sequencing transition activities and taking other reasonable
measures to assure uninterrupted performance of those services provided, that
(i) Unisys takes all reasonable measures to minimize turnover or attrition
through incentives to affected employees and otherwise, and (ii) Unisys pays
Exult for any material, incremental effort required to carry out the purposes of
this Section 4.06 at Exult's then-current rates for such services (including any
overtime, travel and living, or other unusual costs incurred because of the
urgency of the situation).

           4.07 Human Resources. The transition of employees of Unisys to Exult
shall be effected in accordance with the terms of Schedule J to the Service
Agreement.

           4.08 Steering Committee. Promptly following execution of this
Agreement, the Parties shall form a joint committee (the "Steering Committee")
consisting of the Parties' respective Global Client Executives, and two (2)
individuals selected from time to time by each Party. The Steering Committee
shall meet at least quarterly (or at such other intervals as it may determine)
and at any time upon at least fifteen (15) days' prior notice by either Party.
Meetings may be conducted in person or by video conference, and unless otherwise
agreed, shall take place at Unisys or Exult facilities on an alternating basis.
The Steering Committee shall (i) review period performance reports, (ii) review
the Parties' overall performance of this Agreement and all Service and other
agreements, (iii) attempt to resolve any outstanding issues, (iv) set policy for
performance of the Agreement, (v) review long range planning, and (vi) consider
such other issues as either Party may from time to time desire.

           4.09 Disaster Recovery. Exult shall provide disaster recovery
services in respect of critical services delivered to Unisys through the Exult
Service Centers. Any additional disaster recovery services requested by Unisys
may be provided in accordance with Change Control Management.

           4.10 Account Management. Throughout the term, the Parties' respective
Global Executives shall meet periodically, at such intervals as they may deem
advisable and in any event at least monthly to review the performance of the
Agreement and Service Agreements. In addition, the Parties' respective Client
Executives shall meet periodically, at such intervals as they may deem
advisable, or as may be specified by the relevant Service Agreement, to review
the performance of the relevant Service Agreement. All such meetings shall take
place at mutually agreeable locations, or if mutually agreed, by telephone
conference call or video conference.

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           4.11 Compliance With Laws. Each Party will comply with applicable
Laws, and advise the other of changes in Laws that concern the conduct of its
business and affect performance of the Services. Each Party shall obtain and
maintain all governmental approvals required to conduct its business and perform
its obligations under this Agreement and all Service Agreements.

           4.12 Transition Functions. In connection with each Service Agreement,
each Party shall perform all functions and services within its responsibility
and necessary to accomplish the transition of the services in accordance with
the relevant Transition Plan without causing a material disruption in Unisys
business. For each Service Agreement, each Party shall designate a transition
manager responsible for managing the transition, and who shall keep the other
Party's transition manager (or his or her designee) advised of the progress and
performance of the transition.

           4.13 Subcontractors. [***]*

(1)     No subcontracting shall release Exult from its responsibility for its
        obligations under this Master Agreement or any Service Agreement. Exult
        shall be responsible for the work and designated activities of each of
        its subcontractors, including compliance with applicable terms of this
        Master Agreement and any Service Agreement. Exult shall be responsible
        for all payments to its subcontractors.

(2)     Exult shall promptly pay for all services, materials, equipment and
        labor used by Exult in providing the Services and shall indemnify Unisys
        from, and defend Unisys against, any liabilities or expenses (including
        reasonable attorneys' fees and expenses) connected with Exult's failure
        to promptly pay for such services, materials, equipment or labor and
        shall keep the premises of Unisys free of all liens. (Indemnification
        procedures shall be governed by Section 19.06, below.)

(3)     All subcontractors shall comply with the provisions of this Master
        Agreement and the relevant Service Agreement such as provisions
        concerning confidentiality, protection of customer data, compliance with
        customer policies, audit, change control, security, use of facilities
        and such other requirements as may be required or appropriate for
        subcontractors.

(4)     The foregoing requirements do not apply to (a) subcontracts involving
        expenditure of less than [***]* or (b) incidental engagement by Exult of
        individual experts or consultants as independent contractors or to
        outsourcing by Exult of routine functions unrelated to performance of
        the Services (e.g., custodial and security services at Exult
        facilities).

           4.14 Services to Competitors. Exult's Key Employees substantially
engaged in the performance of Services, who (a) are identified in Schedule I, or
other agreed lists that may be appended to the relevant Service Agreement, as
they may be updated from time to time by mutual agreement, and (b) have access
to Confidential Information concerning Unisys business and affairs, will not be
permitted to provide similar services to Listed Unisys Competitors while they
perform Services, and for a period of [***]* thereafter. Exult will establish
and maintain procedures reasonably satisfactory to Unisys to restrict access to
the data and Confidential Information of Unisys, so that no competitors of
Unisys who may receive services from Exult have access to any such Confidential
Information (but Unisys shall be responsible for the security of all such data

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*Confidential information has been omitted.

                                       5
<PAGE>   13

stored for Exult in Unisys equipment and facilities). Unisys Listed Competitors
are the companies listed on Schedule I, and their respective successors. Unisys
may update Schedule I to identify other competitors once in each Contract Year,
by written notice, but (i) the total number of Listed Unisys Competitors shall
not exceed [***]* and (ii) Unisys may not add to the list of Listed Unisys
Competitors any entity that is, at the time of modification of the list, already
a client of Exult.

ARTICLE 5 CONTRACT ADMINISTRATION.

           5.01 Transferred Agreements. Subject to Unisys obtaining and
complying with the Consents, Exult shall have financial and administrative
responsibility during each Service Agreement Term for the Transferred Agreements
listed in Schedule D of each Service Agreement. Exult shall be responsible for
the performance of all obligations of Unisys under the Transferred Agreements,
including payment of all related expenses attributable to the period on or after
the applicable Service Agreement Effective Date, to the extent that such
obligations were disclosed to Exult on or before the applicable Service
Agreement Effective Date through receipt by Exult of a copy of the relevant
documents, including the applicable Transferred Agreements. Exult may from time
to time terminate any Transferred Agreement and Exult shall reimburse Unisys for
any termination charges arising out of any such terminations, to the extent paid
or payable by Unisys.

           5.02 Managed Agreements. Subject to Unisys obtaining and complying
with the Consents, Exult shall manage, administer and maintain the Managed
Agreements listed in Schedule D of each Service Agreement. Exult shall provide
Unisys with reasonable notice of any renewal, termination or cancellation dates
and fees with respect to the Managed Agreements. Exult shall not renew, modify,
terminate or cancel, or request or grant any consents or waivers under, any
Managed Agreement without Unisys consent. Any fees or charges imposed upon
Unisys in connection with any such renewal, modification, termination or
cancellation, or consent or waiver under the Managed Agreements, shall be paid
or discharged, as applicable, by the Party requesting such renewal,
modification, termination or cancellation. Exult shall promptly notify Unisys of
any breach of, or misuse or fraud in connection with, any Managed Agreements of
which Exult becomes aware and shall cooperate with Unisys to prevent or mitigate
any such breach, misuse or fraud. Exult shall pay all amounts due for any
penalties or charges (including amounts due to a third party as a result of
Exult's failure promptly to notify Unisys pursuant to the preceding sentence),
associated taxes, legal expenses and other incidental expenses incurred by
Unisys as a result of Exult's non-performance of its obligations concerning the
Managed Agreements.

           5.03 Unisys Obligations. Commencing as of the Master Agreement Date,
Unisys shall not enter into any new or amend any existing agreements or
arrangements, written or oral, affecting or impacting the Third Party Contracts,
without Exult's consent. Unisys represents and warrants that all obligations
with respect to the Third Party Contracts accruing prior to or attributable to
periods prior to the applicable Service Agreement Effective Date have been
satisfied.

ARTICLE 6 SERVICE LEVELS.

           6.01 Quality and Service Levels. Exult will deliver good quality
service that meets or exceeds agreed Service Levels specified by Service
Agreements. Where no specific Service Levels apply, Exult will use commercially
reasonable efforts to provide services that meet

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*Confidential information has been omitted.

                                       6
<PAGE>   14

or exceed industry standards. All Services shall be performed by individuals
with suitable training and skills.

           6.02 Service Levels. Exult shall report on and provide such data as
is necessary to support the Reporting Service Levels set forth in Schedule B to
the Service Agreements. Exult shall comply with the Key Performance Indicators
set forth in Schedule B to the Service Agreements.

           6.03 Reporting. Exult shall provide to Unisys performance reports on
a monthly basis in the format to be determined during the Transition Period.

           6.04 Remedies. If Exult fails to meet a Key Performance Indicator for
any Service, then Exult shall (a) complete performance of the Service as near as
commercially reasonably possible to the applicable Key Performance Indicator;
(b) use commercially reasonable efforts to remedy the problem that caused it to
fail to meet such Key Performance Indicator and (c) pay to Unisys the Service
Credits, if any, in accordance with Schedules B and C to the Service Agreements.
Payment of Service Credits shall be Unisys sole monetary remedy, except in cases
where the failure to meet Key Performance Indicators constitutes material
breach, and in such circumstances, Unisys may recover its full damages (less any
Service Credits actually paid, and subject to applicable limitations on Exult's
liability). The Service Credits shall not otherwise limit Unisys rights to
equitable relief or to terminate any Service Agreement or this Master Agreement.
Service Credits are liquidated damages. Service Credits are reasonable in the
circumstances existing at the time of this Agreement, and the relevant Service
Agreement(s).

           6.05 Exclusions. Degradations of performance shall not constitute
Exult's failure to meet applicable Service Levels to the extent that any such
failure is attributable to any one or more of the following causes:

(1)     Force Majeure Events;

(2)     Unisys acts or omissions (including, among other things, violations of
        Law, willful misconduct, negligent acts or breaches of this Master
        Agreement, a Service Agreement, deficiencies in Unisys services
        performed for Exult in connection with this Master Agreement or any
        Service Agreement, or matters subject to indemnification thereunder);

(3)     Acts or omissions of Unisys third party contractors other than Exult or
        Exult Affiliates or subcontractors (including, among other things,
        violations of Law, negligent acts or breaches of applicable agreements);

(4)     Infringements of third party proprietary rights by Unisys or its third
        party contractors other than Exult or Exult Affiliates or
        subcontractors;

(5)     Service or resource reductions requested or approved by Unisys and
        agreed by the Parties through Change Control Management;

(6)     Unisys failure to take corrective action within Unisys responsibility
        reasonably requested and identified by Exult in writing to Unisys as
        essential to maintain Service Levels; and

(7)     Failures to meet Service Levels while operating under a disaster
        recovery plan.

                                       7
<PAGE>   15

Exult will make commercially reasonable efforts to mitigate the effects of the
foregoing circumstances.

           6.06 Baseline Surveys. Upon request, Exult shall engage an
independent third party, approved by Unisys, to conduct a baseline survey of
customer satisfaction among Unisys employees who receive Services. The form,
content and administration of such baseline surveys shall be subject to Unisys
approval. Costs of the survey shall be apportioned as mutually agreed in
writing.

           6.07 Periodic Surveys. At such intervals as Unisys may reasonably
determine, Exult shall, upon Unisys request, engage an unaffiliated third party
approved by Unisys to conduct a customer satisfaction survey in respect of those
aspects of the Services designated by Unisys. The survey shall, at a minimum,
cover a representative sampling of Unisys employees and senior management of
Unisys, in each case as specified by Unisys. The timing, content, scope and
method of the survey shall be consistent with the relevant baseline survey and
subject to Unisys approval. Exult agrees that (a) increased measured customer
satisfaction shall be a key performance indicator [***]* and (b) customer
satisfaction metrics may be measured as Key Performance Indicators (and subject
to payment of Service Credits when and to the extent agreed in writing in
Schedule B to a Service Agreement). In the event that Unisys disputes the
results of the customer satisfaction survey, Unisys may engage a third party,
reasonably acceptable to Exult, to conduct the customer satisfaction survey
pursuant to this Section.

           6.08 [***]*

           6.09 Benchmarking Report and Adjustments.

(1)        The Benchmarker shall render a written report to both Parties.
           Comparisons with market measures of quality and cost shall be based
           upon a statistically meaningful sample, and normalized to account for
           investments in assets, transfers of personnel, variations in
           configurations, unusual or unique customer requirements, unusual or
           unique aspects of Exult's Services, provision of certain services by
           Unisys, and other, similar factors. Benchmarker's methods for
           normalization and the sample size shall be subject to the Parties'
           approval.

(2)        If the Benchmarker determines that Services are materially below
           market standards of quality, Exult shall within [***]* after
           receiving the Benchmarker's report, prepare a written plan for review
           with the Management Committee describing measures Exult proposes to
           take to improve quality and meet the standards specified by Section
           6.01, above, and, upon approval of such a plan, diligently carry out
           the plan, and such other measures as may be agreed to improve
           quality.

(3)        If the Benchmarker determines that charges for Services materially
           exceed market rates for similar volumes of similar services
           (normalized, as provided above), then Exult shall adjust its charges
           to market rates or meet with the Steering Committee to discuss
           adjustments of its charges. If the Parties are unable to agree upon
           adjustments in Exult charges within [***]* after receiving the
           Benchmarker's report, then Unisys may, at its option, request an
           adjustment to market rates in accordance with Article 17.04,
           concerning resolution of disputes by management, or if the Parties
           are unable to agree upon such an adjustment,

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

*Confidential information has been omitted.

                                       8
<PAGE>   16

           terminate the relevant Service Agreement or this Master Agreement for
           its convenience in accordance with Article 18.02(2), below.

ARTICLE 7 CHANGES IN THE SERVICES.

           7.01 Right To Make Changes.

(1)     Exult reserves the right in its discretion to designate and make changes
        to the operation procedures, accessibility periods, allocation and
        quantity of system resources utilized and administrative and operational
        algorithms (each, a "Change"); provided, however, that no such Change
        shall have a material adverse impact on the Service Levels or cause an
        increase to the Fees.

(2)     Except as set forth in subsection (1) above, in the event a Party wishes
        to make a Change, such Party shall, in accordance with Change Control
        Management, submit a written proposal to the other Party describing such
        desired Change. The other Party shall, in accordance with Change Control
        Management, reject or accept the proposal in writing within a reasonable
        period of time, but in no event more than [***]* after receipt of the
        proposal. In the event the proposal is rejected, the writing shall
        include the reason for the rejection. In the event the proposal is
        accepted, the Parties shall, in accordance with Change Control
        Management, determine the additions or modifications to be made to the
        Service Agreement (including the Fees). Any such addition or
        modification shall be set forth in a written Change Order signed by the
        Parties. Neither Party shall be obligated to accept a proposal submitted
        by the other Party pursuant to this subsection. Exult shall have no
        obligation to provide any service or otherwise act pursuant to any
        proposal submitted by Unisys pursuant to this subsection, except to the
        extent such proposal is set forth in an executed Change Order.

           7.02 Changes in Law. Unisys shall be responsible for promptly
identifying and notifying Exult of any changes in Law, including Unisys
regulatory requirements, that may relate to Exult's delivery or Unisys receipt
of or use of the Services. In accordance with Change Control Management, the
Parties shall work together to identify the impact of such changes on how Unisys
receives and uses, and Exult delivers, the Services. Unisys shall be responsible
for any fines and penalties arising from any noncompliance by Unisys or Exult
with any such changes in Law relating to Unisys use of the Services. Subject to
the following sentence, if a change in Law prevents or delays Exult from
performing its obligations under this Master Agreement or a Service Agreement,
the Parties shall, in accordance with Change Control Management, develop and
implement a suitable workaround until such time as Exult can perform its
obligations under this Master Agreement or a Service Agreement, as the case may
be, without such workaround. If a change in Law, including the development or
implementation of a workaround, results in Exult's use of additional resources
or an increase in Exult's costs of providing the Services, Unisys shall
reimburse Exult for such additional resources and increased costs (excluding
costs attributable to Exult's delays). Exult shall not have any obligation to
monitor or become aware of any Laws, including Unisys regulatory requirements,
relating to Unisys business or its receipt or use of the Services. If,
notwithstanding diligent efforts to mitigate or manage the effects any change in
Law,

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

*Confidential information has been omitted.

                                       9
<PAGE>   17

and to equitably adjust Services, Service Levels or Fees in the manner
contemplated by Section 12.06 below, (i) such a change in Law makes performance
of a material category of Services or Processes impossible to perform, or (ii)
an increase in taxation upon the Services makes continuation of the Master
Agreement or any Service Agreement uneconomic by rendering it unprofitable to
Exult, or erasing all or substantially all of the discount contemplated by
Section 4.1 Schedule C to the US Service Agreement, then the Party adversely
affected by the change in Law or taxation may terminate the Master Agreement and
all Service Agreements by giving written notice to the other Party. Such a
termination shall be treated as a convenience termination, subject to Section
18.02(2), but there shall be no obligation to pay a termination fee.

ARTICLE 8 TRANSITION PLAN.

Each of the Parties shall be responsible for the transition obligations and
milestones described in the Master Transition Plan set forth in Schedule G to
this Master Agreement and the Transition Plans set forth in Schedule G to each
of the Service Agreements.

ARTICLE 9 NEW SERVICES.

           9.01 Exult Opportunity. With respect to any New Service for which
Exult has been selected to provide to Unisys, Exult shall not be responsible for
providing such New Service until Exult and Unisys have executed a Change Order
or entered into a new Service Agreement, as the case may be, including Exult's
charges for such New Service. [***]*

           9.02 Exult Cooperation with Third Parties. In the event Unisys
selects a third party to provide a New Service, upon Unisys request and
reasonable notice, Exult shall cooperate with any independent third party
service vendors of Unisys; provided, however, that (1) such cooperation does not
impact the Services or Exult's ability to meet the Service Levels and (2) Exult
shall not be required to disclose any of Exult's Confidential Information to
such third party service provider unless such third party executes a
confidentiality agreement in a form acceptable to Exult and such third party's
use of such Confidential Information is solely for the benefit of Unisys. There
will be no charge to Unisys for incidental consultations, electronic copies of
data and documentation or other minor or incidental additional effort or service
provided in connection with provision of a New Service by a third party, but
Unisys will pay in accordance with an approved Change Order for material,
additional effort or serve at the rates and charges agreed to for the relevant
engagements, or if no specific rate or charge has been agreed, then at Exult's
standard rates then in effect for similar kinds and volumes of services.

ARTICLE 10 CUSTOMER RESPONSIBILITIES.

           10.01 Unisys Managers.

(1)     During the Master Term, Unisys shall maintain an individual (the "Unisys
        Global Client Executive") who shall serve as the primary Unisys
        representative under this Master Agreement and the Service Agreements.
        The Unisys Global Client Executive (or in his or her absence, his or her
        designee) shall (a) have overall responsibility for managing and

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

* Confidential information has been omitted.

                                       10
<PAGE>   18
        coordinating the performance of Unisys obligations under this Master
        Agreement and the Service Agreements and (b) be authorized to act for
        and on behalf of Unisys with respect to all matters relating to this
        Master Agreement and the Service Agreements.

(2)     During each Service Agreement Term, Unisys shall maintain a senior
        executive of Unisys (each, a "Unisys Client Executive") who shall serve
        as the primary Unisys representative under each Service Agreement. The
        Unisys Client Executives (or their absence, their respective designees)
        shall (a) have overall responsibility for managing and coordinating the
        performance of Unisys obligations under the Service Agreements and (b)
        be authorized to act for and on behalf of Unisys with respect to all
        matters relating to the Service Agreements.

           10.02 Unisys Responsibilities. During the Service Agreement Terms and
in connection with Exult's performance of the Services under the Service
Agreements, Unisys shall, at its expense: (1) be responsible for the obligations
and responsibilities set forth in Schedule A to the Service Agreements; (2) upon
Exult's request, make available to Exult Unisys personnel familiar with Unisys
business requirements related to the Services; (3) obtain and comply with the
Consents; (4) provide to Exult complete and accurate information regarding
Unisys business requirements in respect of any work to be performed by Exult
under the Service Agreements; (5) respond within the time period specified in
this Master Agreement or the Service Agreements (or if no time period is
specified within thirty (30) days to all deliverables presented to Unisys by
Exult for Unisys approval, which approval shall not be unreasonably withheld or
delayed (if Unisys fails to respond within the relevant period, and thereafter
fails to respond within ten (10) days after receiving further written notice,
Unisys shall be deemed to have accepted such deliverable); (6) provide
reasonable cooperation to Exult; (7) promptly notify Exult of any (a) third
party claims that may have an impact on this Master Agreement or the Service
Agreements and (b) invalid or nonexistent licenses; and (8) perform all other
obligations of Unisys described in this Master Agreement and the Service
Agreements.

           10.03 Unisys Resources. Commencing on the Service Agreement Effective
Date and continuing for so long as and to the extent that Exult requires the
same for the performance of the Services, Unisys shall provide to Exult, at no
charge to Exult:

(1)     the use of the space in Unisys premises that Exult may from time to time
        require in connection with the performance of the Services, together
        with office furnishings, telephone equipment and services, janitorial
        services, utilities and office-related equipment, supplies and
        duplicating services reasonably required in connection with the
        performance of the Services;

(2)     access to, and use of, the Unisys Machines, the Unisys Network and the
        Unisys Software; and

(3)     such other resources specified in Article 7 of the Service Agreements.

                                       11
<PAGE>   19

           10.04 Use of Unisys Facilities & Resources. No such Exult use of
Unisys facilities shall be construed to grant Exult, any Exult Representative,
or any third party any leasehold, subleasehold, license or other right
concerning Unisys facilities, other than the limited rights of use expressly
authorized by this Master Agreement (or otherwise in writing). In each such
instance, Exult and Exult Representatives shall:

(1)     Use the Unisys facilities only to provide the Services (provided that
        routine administrative time, or occasional consultation concerning work
        for other customers shall not constitute breach of this requirement);

(2)     Use Unisys facilities in a reasonably efficient manner (to the extent
        that Exult operates the space in a manner that unnecessarily increases
        facility costs incurred by Unisys, Unisys reserves the right to set-off
        the excess utility costs of such practices);

(3)     Keep the Unisys facilities in good order, and neither permit nor commit
        any waste, damage or unlawful uses or conduct;

(4)     Comply with all of Unisys standard policies and procedures as in effect
        from time to time, including security procedures;

(5)     Permit Unisys and its representatives to enter into those portions of
        the Unisys facilities occupied by Exult staff at any time;

(6)     Make no improvements or changes involving structural, mechanical or
        electrical alterations (including cabling) without Unisys approval; and

(7)     When the Unisys facilities are no longer required for performance of the
        Services, return those facilities to Unisys in substantially the same
        condition as before, normal wear and tear excepted.

           10.05 Use of Services. [***]*

ARTICLE 11 SOFTWARE AND PROPRIETARY RIGHTS.

           11.01 Rights in Residuals. Nothing contained in this Master Agreement
or the Service Agreements shall restrict either Party from the use of any ideas,
concepts, know-how, methodologies, processes, technologies, algorithms or
techniques relating to the Services which either Party, individually or jointly,
owns prior to the Master Agreement Effective Date, or develops or discloses
under this Master Agreement or a Service Agreement, or develops or obtains
independently during the Master Term, provided that in doing so such Party does
not breach its obligations of confidentiality or infringe the intellectual
property rights of the other Party or third parties who have licensed or
provided materials to the other Party and provided further, that obligations of
confidentiality shall not be construed to restrict a Party's general use of the
foregoing kinds of intellectual property (without disclosing Confidential
Information specific to the other Party). Except for the license rights
contained in this Article 11, neither this Master Agreement nor any disclosure
made hereunder grants any license to either Party under any patents or
copyrights of the other Party. Each Party reserves all rights in its ideas,
concepts, know-how, methodologies, processes, technologies, algorithms,
techniques and other intellectual property of every kind and

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

* Confidential information has been omitted.

                                       12
<PAGE>   20

description (except as otherwise expressly agreed in writing) and no provision
of this Master Agreement shall be construed to transfer any of such Party's
rights in such intellectual property.

           11.02 Exult Proprietary Software. Subject to Article 15
(Confidentiality) Exult hereby grants Unisys [***]*

           11.03 Unisys Proprietary Software. Subject to Article 15
(Confidentiality), Unisys hereby grants Exult [***]*

           11.04 New Intellectual Property. Unless otherwise agreed in writing
(through Addendum No. 1 to the Master Subcontract or otherwise), [***]*

           [***]*

ARTICLE 12 PAYMENTS TO EXULT.

           12.01 Fees. In consideration of Exult providing the Services, Unisys
shall pay to Exult the Fees set forth in each Service Agreement in accordance
with the terms and conditions of such Service Agreement, as may be adjusted from
time to time pursuant to the terms of this Master Agreement and the Service
Agreements.

           12.02 Charges All-Inclusive. Exult's Fees are all-inclusive. Payment
of the Fees specified by the Service Agreements, all pass-through or other
reimbursable costs, and other amounts specified by any Service Agreement
constitutes full payment for the Services. Unless otherwise agreed in writing,
Unisys shall have no responsibility to pay or reimburse any other charge,
expense or amount.

           12.03 Taxes.

(1)     The Fees payable by Unisys to Exult [***]*

(2)     Exult and Unisys shall each bear sole responsibility for all taxes,
        assessments and other taxes upon their respective real and personal
        property and net incomes.

(3)     Exult and Unisys shall cooperate to segregate the Fees into the
        following separate payment streams: (1) those for taxable Services; (2)
        those for nontaxable Services; and (3) those for which a sales, use or
        other similar tax has already been paid that otherwise are nontaxable or
        have previously been subject to tax. In addition, each of Exult and
        Unisys shall reasonably cooperate with the other to more accurately
        determine a Party's tax liability and to minimize such liability, to the
        extent legally permissible. Each of Exult and Unisys shall provide and
        make available to the other any resale certificates, information
        regarding out-of-state sales or use of equipment, materials or services,
        and any other exemption certificates or information requested by a
        Party.

           12.04 Verification of Information. The Services, Fees and Service
Levels are based on circumstances, estimates, metrics, principles, financial
data, standards and general information disclosed by Unisys or used by Exult as
more fully described in Schedule A, Schedule B and Schedule C to the US Service
Agreement, as applicable. [***]* Any material deviations from such assumptions
discovered after the Adjustment Period shall be made in accordance with

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

*Confidential information has been omitted.

                                       13
<PAGE>   21

the Change Control Management Procedures. For purposes of this Section 12.04 net
adjustments of less than [***]* shall not be deemed material.

           12.05 Pro-ration. Unless otherwise agreed in writing, all periodic
charges shall be computed on a calendar month basis, and shall be pro-rated for
any partial month. Amounts prepaid by Unisys under Transferred Agreements and
attributable to periods after the effective date of the relevant Service
Agreement shall be credited to Unisys account; and amounts prepaid by Exult
under third party agreements re-assigned or otherwise transferred to Unisys and
attributable to periods after expiration or termination of this Agreement or the
relevant Service Agreement shall be paid or credited to Exult.

           12.06 Equitable Adjustment. Except as otherwise agreed in writing for
a particular situation, in the event of any extraordinary change in Unisys
business because of acquisitions, divestitures, mergers, or other material
changes in circumstances that increase or decrease volumes of substantially all
of the Services under a particular Service Agreement by more than [***]*
measured on an annual or annualized basis, then upon either Party's request,
Exult's Fees for the affected Services and relevant Termination Charges shall be
equitably adjusted to reflect: (1) the net increase or decrease in Exult's
aggregate costs of performing the Services that are caused by the extraordinary
change (excluding increases or decreases attributable to Exult's performance);
(2) acquisition or dispositions of assets and other similar costs of additions
to or reductions from service; and (3) a reasonable allowance for profit upon
the net change in costs.

           12.07 Recordkeeping and Record Retention. Exult shall maintain
complete and accurate records of, and supporting documentation for, the amounts
billed to and payments made by Unisys under this Agreement. Exult shall retain
such records in accordance with records retention requirements of the applicable
Service Agreement, and in any event [***]* Exult shall provide Unisys, at Unisys
request, with paper and electronic copies of documents and information
reasonably necessary to verify Exult's compliance with this Master Agreement.
Unisys and its authorized agents and Unisys Representatives shall have access to
such records for audit purposes during normal business hours during the term of
this Master Agreement and any relevant Service Agreement and thereafter for the
period during which Exult is required to maintain such records.

ARTICLE 13 AUDITS.

           13.01 Audit Rights. Exult shall maintain (i) a complete audit trail
of financial transactions and (ii) records of its performance of Services under
this Agreement in accordance with good commercial practice. Exult shall provide
to Unisys, Unisys internal and external auditors and such other representatives
as Unisys may reasonably designate from time to time (collectively, "auditors")
access at reasonable times and after reasonable notice (unless circumstances
reasonably preclude such notice) to: (1) the parts of any facility at which
Exult is providing the Services, (2) Exult personnel providing the Services, and
(3) all data and records relating to the Services, for the purpose of performing
audits and inspections of Unisys and its business, to verify the integrity of
Unisys data, to examine the systems that process, store, support and transmit
that data, and to examine Exult's charges and performance of the Services under
this Agreement. The foregoing audit rights shall include, without limitation,
audits of the following, to the extent relevant to the Exult Services, (A)
practices and procedures, (B) systems, (C) general

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

*Confidential information has been omitted.

                                       14
<PAGE>   22

controls and security practices and procedures, (D) disaster recovery and backup
procedures, (E) efficiency (in accordance with Article 6), (F) costs (to the
extent Services are being provided by Exult on a cost-reimbursement basis) of
Exult in performing the Services, (G) Exult's variable charges under the
Agreement, (H) Service Level performance and reporting, and (I) necessary to
enable Unisys to meet applicable regulatory requirements. Exult shall provide
all reasonable cooperation to such auditors, inspectors, regulators and
representatives.

           13.02 Audit Responses.

(1)     If an audit reveals that Exult has overcharged Unisys for Services
        during the audited period, [***]* Exult shall pay such amount to Unisys
        within thirty (30) days after Unisys written request (which shall
        include the relevant portions of the audit and the auditor's invoice).
        [***]*

(2)     If any audit determines that Exult or any Exult Representatives are not
        in compliance with any applicable law, regulation or audit requirement,
        Exult shall, and shall cause Exult Representatives to, promptly take
        actions to comply with such audit. Exult shall bear the expense of any
        such compliance that is (1) required by a law, regulation or audit
        requirement relating to Exult business or (2) necessary due to Exult
        noncompliance with any law, regulation or audit requirement imposed on
        Exult. To the extent the expense is not payable by Exult pursuant to the
        preceding sentence, Unisys shall bear the expense of any such compliance
        that is (A) required by any Law or audit requirement relating to Unisys
        business or (B) necessary due to Unisys noncompliance with any law,
        regulation or audit requirement imposed on Unisys.

(3)     Disputes concerning overpayment, underpayment or other audit findings or
        recommendations shall be resolved in accordance with Article 17
        concerning disputes.

           13.03 Exult Audits. [***]* Exult will provide Unisys with an annual
letter concerning its compliance with SAS-70 (or any successor audit standard).

           13.04 Survival. The foregoing Sections 13.1 through 13.3 inclusive,
shall survive the expiration or earlier termination of this Master Agreement or
the relevant Service Agreements for a period of two (2) years.

           13.05 Audit Procedures. Unisys and its auditors shall have no access
to other Exult data, data of other Exult clients, or Exult internal or third
party costs or cost structure (except to the extent otherwise provided above
with respect to cost reimbursements). Auditors shall observe such procedures and
enter into such nondisclosure agreements as Exult may reasonably require to
protect Exult Confidential Information, and that of its clients and vendors.
Those procedures and agreements shall contain such security arrangements as
Exult may require to assure that no information concerning audits hereunder is
disclosed to business units of Unisys or its audit firm engaged in consulting or
other services that may compete with Exult. Unisys shall cause Auditors to
perform entry and exit interviews, and to provide Exult with copies of
applicable portions of audit reports.

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

*Confidential information has been omitted.

                                       15
<PAGE>   23

           13.06 Audit Costs. If Exult's provision of services related to an
audit or other review under this Article 13 requires use of additional resources
which Exult would not otherwise use in the performance of the Services (which
includes support of a single annual audit of Unisys accounts) then (unless
Section 13.02(1) applies) Unisys shall pay Exult for additional usage at Exult's
standard rates then in effect (unless the audit was undertaken by Unisys in
order to examine material deficiencies in Exult's performance or material
overcharges, and the audit in fact identifies material deficiencies or
overcharges). Any audits conducted pursuant to this Article 13 shall be at
Unisys expense (except as otherwise expressly provided above with respect to
overcharges).

ARTICLE 14 DATA AND REPORTS.

           14.01 Provision of Data. Unisys shall supply to Exult, in connection
with the Services, required data in the form and on such time schedules as may
be agreed upon by Exult and Unisys ("Unisys Data") in order to permit Exult to
perform the Services in accordance with the terms of the Service Agreements,
including the Service Levels. All Unisys Data is, or shall be, and shall remain
the property of Unisys.

           14.02 Inspection of Reports. Unisys shall use reasonable efforts to
inspect and review reports and provide Exult with notice of any errors or
inaccuracies (a) in daily or weekly reports, within [***]* of such reports, and
(b) in monthly or other reports, within twenty (20) business days of receipt of
such reports. Exult shall provide Unisys with such documentation and information
as may be requested by Unisys in order to verify the accuracy of the reports. If
Unisys fails to reject any such report within the applicable period, Unisys
shall be deemed to have accepted such report.

           14.03 Correction of Errors. Upon notice from Unisys and at Unisys
expense, Exult shall promptly correct any errors or inaccuracies in Unisys Data
and reports prepared by Exult as part of the Services, to the extent not caused
by Exult or Exult Representatives. Upon notice from Unisys and at Exult's
expense, Exult shall promptly correct any errors or inaccuracies in Unisys Data
and reports prepared by Exult as part of the Services, to the extent caused by
Exult or Exult Representatives.

ARTICLE 15 CONFIDENTIALITY AND SECURITY.

           15.01 General Obligations.

(1)     All Confidential Information relating to or obtained from Unisys or
        Exult shall be held in confidence by the recipient to the same extent
        and in at least the same manner as the recipient protects its own
        confidential or proprietary information and shall be used by the
        recipient only for the purposes of performance under this Master
        Agreement, the Service Agreements and Addendum No. 1 to the Master
        Subcontract.

(2)     Neither Unisys nor Exult shall disclose, publish, release, transfer or
        otherwise make available Confidential Information of, or obtained from,
        the other in any form to, or for the use or benefit of, any person or
        entity without the disclosing Party's consent. Each of

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

*Confidential information has been omitted.

                                       16
<PAGE>   24

        Unisys and Exult shall, however, be permitted to disclose relevant
        aspects of the other's Confidential Information to its officers,
        directors, employees, auditors, attorneys and Representatives, to the
        extent that such disclosure is not restricted under this Master
        Agreement, the Service Agreements or any governmental approvals and only
        to the extent that such disclosure is reasonably necessary for the
        performance of its duties and obligations under this Master Agreement
        and the Service Agreements; provided, however, that the recipient shall
        be responsible for ensuring that such officers, directors, employees,
        auditors, attorneys and Representatives abide by the provisions of this
        Master Agreement and the Service Agreements.

           15.02 Exclusions. The obligations in Section 15.01 shall not restrict
any disclosure pursuant to any applicable Law or by order of any court or
Governmental Authority (provided that the recipient shall give prompt notice to
the disclosing Party of such order) and, except to the extent that applicable
Law provides otherwise, shall not apply with respect to information that (1) is
independently developed by the recipient without violating the disclosing
Party's proprietary rights as shown by the recipient's written records, (2) is
or becomes publicly known (other than through unauthorized disclosure), (3) is
disclosed by the owner of such information to a third party free of any
obligation of confidentiality, (4) is already known by the recipient at the time
of disclosure, as shown by the recipient's written records, and the recipient
has no obligation of confidentiality other than pursuant to this Master
Agreement, any Service Agreement or any confidentiality agreements entered into
before the Master Agreement Date between Unisys and Exult or (5) is rightfully
received by a Party free of any obligation of confidentiality. Without limiting
the foregoing, the Parties recognize that each company may be required to
provide disclosure regarding the Master Agreement and Service Agreements in
connection with their respective SEC filings, and to file with the SEC copies of
the Master Agreement and Service Agreements. Each Party will give the other an
opportunity to comment in advance on the form of disclosure to be made by the
disclosing Party, and will attempt to obtain confidential treatment from the SEC
for sensitive portions of the Master Agreement and Service Agreements, including
portions thereof proposed for confidential treatment, subject in each case to
the disclosing Party's disclosure obligations.

           15.03 Unauthorized Acts. Without limiting either Party's rights in
respect of a breach of this Article, each Party shall:

(1)     promptly notify the other Party of any unauthorized possession, use or
        knowledge, or attempt thereof, of the other Party's Confidential
        Information by any person or entity that may become known to such Party,
        including any incidents involving a breach of security and any incidents
        that might indicate or lead to a threat to, or weakness in, security and
        any attempt to make unauthorized use of the Services or the Systems;

(2)     promptly furnish to the other Party full details of the unauthorized
        possession, use or knowledge, or attempt thereof, and assist the other
        Party in investigating or preventing the recurrence of any unauthorized
        possession, use or knowledge, or attempt thereof, of Confidential
        Information;

(3)     cooperate with the other Party in any litigation and investigation
        against third parties deemed necessary by the other Party to protect its
        proprietary rights; and

(4)     promptly use commercially reasonable efforts to prevent a recurrence of
        any such unauthorized possession, use or knowledge, or attempt thereof,
        of Confidential Information.

                                       17
<PAGE>   25

Each Party shall bear the cost it incurs as a result of compliance with this
Section.

           15.04 Injunctive Relief. Each Party recognizes that its disclosure or
inappropriate use of Confidential Information of the other Party may give rise
to irreparable injury to such Party and acknowledges that remedies other than
injunctive relief may not be adequate. Accordingly, each Party has the right to
equitable and injunctive relief to prevent the unauthorized possession, use,
disclosure or knowledge of any Confidential Information, as well as to such
damages or other relief as is occasioned by such unauthorized possession, use,
disclosure or knowledge.

           15.05 Data Protection. In addition to any requirements set forth in
the Service Agreements, in the event the Services require the access to or use
of personal data, each Party shall be responsible for taking all necessary steps
required by applicable Law to ensure the protection of the privacy of such
personal data to be accessed or used. In the event that applicable Law requires
registration with or consents of a Governmental Authority, Unisys shall
register, or cause such registration, with such Governmental Authority, or
obtain such consents, unless applicable Law otherwise requires.

           15.06 Publicity. Neither Party shall use the other Party's name or
refer to it directly or indirectly, without such Party's consent, which consent
shall not be unreasonably withheld, in any media release, public announcement or
public disclosure, except that such consent shall not be required for the use of
a Party's name for promotional or marketing materials, customer lists or
business presentations.

ARTICLE 16 REPRESENTATIONS AND ADDITIONAL COVENANTS.

           16.01 By Unisys. Unisys represents and warrants that:

(1)     It is either the owner of each Unisys Machine and the Unisys Software or
        is authorized by its owner to include it under a Service Agreement;

(2)     It is authorized to permit Exult access to and use of the Unisys
        facilities used in connection with performing the Services, and Exult is
        performing the Services at those Unisys facilities at Unisys request.

(3)     No investigations, legal, administrative or arbitral proceedings are
        pending or threatened concerning Unisys present performance of services
        similar to those described by Schedule A to the US Service Agreement,
        which performance complies in all material respects with all applicable
        Laws.

(4)     No investigations, legal, administrative or arbitral proceedings are
        pending or threatened concerning or relating to the employees presently
        engaged in performance of services similar to those described by
        Schedule A to the US Service Agreement.

(5)     It has delivered to Exult complete copies, including all amendments, of
        the Transferred and Managed Agreements, which are in full force and
        effect.

(6)     No legal, administrative or arbitral proceedings are pending or
        threatened concerning any of the Transferred or Managed Agreements; no
        defaults have occurred under any of the Transferred or Managed
        Agreements; and no circumstances exist that would permit declaration of
        default with notice or lapse of time, or both.

                                       18
<PAGE>   26

           16.02 By Exult.

(1)     It is either the owner of each Exult Machine and the Exult Software or
        is authorized by its owner to include it under a Service Agreement;

(2)     No investigations, legal, administrative or arbitral proceedings are
        pending or threatened concerning Exult's present performance of services
        similar to the Services, which performance complies in all material
        respects with all applicable Laws.

           16.03 Mutual. Each Party hereby represents and warrants that:

(1)     It is a corporation duly incorporated, validly existing and in good
        standing under the laws of the state in which it is incorporated, and is
        good standing in each other jurisdiction where the failure to be in good
        standing would have a material adverse affect on its business or its
        ability to perform its obligations under this Master Agreement or any
        Service Agreement;

(2)     it has all requisite corporate power and authority to enter into this
        Master Agreement and the Service Agreements and to carry out the
        transactions contemplated hereby;

(3)     the execution, delivery and performance of this Master Agreement and the
        Service Agreements and the consummation of the transactions contemplated
        hereby and thereby have been duly authorized by all requisite corporate
        action on the part of such Party;

(4)     this Master Agreement and the Service Agreements have been duly executed
        and delivered by such Party and (assuming the due authorization,
        execution and delivery hereof by the other Party) is a valid and binding
        obligation of such Party, enforceable against it in accordance with its
        terms;

(5)     its entry into and performance of this Master Agreement and the Service
        Agreements does not violate or constitute a breach of any of its
        contractual obligations with third parties; and

(6)     it shall perform its responsibilities under this Master Agreement and
        the Service Agreements in a manner that does not, to the knowledge of
        the applicable Party, infringe, or constitute an infringement or
        misappropriation of, any patent, trade secret, copyright or other
        intellectual property right of any third Party.

           16.04 Regulations.

(1)     Each Party shall obtain, maintain and comply with all consents,
        permissions, permits, approvals and assurances of whatever nature,
        including governmental approvals, in each case, applicable to the
        performance, or receipt, of the Services and such Party's payment
        obligations.

(2)     Each Party covenants and agrees that it shall comply with all Laws
        applicable to such Party.

           16.05 Disclaimers. Exult does not warrant the accuracy of any advice,
report, data or other product delivered to Unisys that is produced with or from
Unisys Data or Software provided by Unisys. Such products are delivered "AS IS",
and Exult shall not be liable for any inaccuracy thereof. EXCEPT AS EXPRESSLY
SET FORTH IN THIS MASTER AGREEMENT AND ANY SERVICE AGREEMENT, EXULT DOES NOT
MAKE ANY OTHER

                                       19
<PAGE>   27

WARRANTIES OR REPRESENTATIONS WITH RESPECT TO THE SERVICES AND EXPRESSLY
DISCLAIMS ALL OTHER REPRESENTATIONS AND WARRANTIES, EXPRESS OR IMPLIED,
INCLUDING ANY IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A SPECIFIC
PURPOSE. EXULT DOES NOT WARRANT THAT PERFORMANCE OF THE SERVICES SHALL BE
UNINTERRUPTED OR ERROR-FREE, OR THAT ALL ERRORS IN THE SERVICES SHALL BE
CORRECTED. EXCEPT AS EXPRESSLY SET FORTH IN THIS MASTER AGREEMENT OR THE SERVICE
AGREEMENTS, EXULT IS NOT ASSUMING ANY OBLIGATIONS OR LIABILITIES, INCLUDING ANY
OBLIGATION OR LIABILITY FOR ANY FIDUCIARY RESPONSIBILITIES OR LENDER
LIABILITIES.

           16.06 Year 2000 Readiness.

(1)     Each Party represents, warrants and covenants that its proprietary
        systems are Year 2000 Ready.

(2)     Each Party has (1) tested all third Party systems for Year 2000
        compliance, (2) found no material errors computing, processing or
        displaying date-related data, or processing anomalies related to the
        change of date or century (collectively, "date anomalies"), or (3)
        undertaken to correct all such known date anomalies within a reasonable
        time, and (4) will, in any event, use best efforts to correct any date
        anomalies that may hereafter occur or be identified.

(3)     Each Party acknowledges that corrective action for third party products
        may involve temporary workarounds, installation of upgrades and fixes,
        procurement of compliant substitutes and other, similar measures. Where
        corrective action requires procurement of an upgraded or replacement
        product, the Party responsible for initial procurement of the
        non-compliant product shall bear the cost of procuring the upgrade or
        replacement.

ARTICLE 17 DISPUTE RESOLUTION.

           17.01 Continued Performance. Except where clearly prevented by the
issue in dispute, both Parties agree to continue performing their respective
duties, obligations and responsibilities under this Master Agreement and any
Service Agreement while the dispute is being resolved in accordance with this
Article, unless and until such obligations are lawfully terminated or expire in
accordance with the provisions hereof.

           17.02 Service Agreement. Any dispute arising under a Service
Agreement shall be considered by the Unisys Client Executive and the Exult
Country Client Executive within [***]* of receipt of a notice from either Party
specifying the nature of the dispute; provided, however, that a dispute relating
to Article 15 shall not be subject to this Section. In the event the Unisys
Client Executive and the Exult Country Client Executive are unable to resolve,
or do not anticipate resolving, the dispute within such seven (7) day period,
the Unisys Client Executive and the Exult Country Client Executive shall submit
the dispute to the Exult Global Client Executive and the Unisys Global Client
Executive for their consideration in accordance with Section 17.03.

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

*Confidential information has been omitted.

                                       20
<PAGE>   28

           17.03 Master Agreement. Any dispute arising under this Master
Agreement or, a Service Agreement which cannot be resolved in accordance with
Section 17.02, above, shall be considered by the Unisys Global Client Executive
and the Exult Global Client Executive within seven (7) business days of receipt
of a notice from either Party specifying the nature of the dispute; provided,
however, that a dispute relating to Article 15 shall not be subject to this
Section.

           17.04 Executive Review. Any dispute arising under this Master
Agreement or a Service Agreement which cannot be resolved in accordance with
Section 17.02 or Section 17.03, as applicable, shall be considered in person or
by telephone by a senior executive of each Party within thirty (30) days of
receipt of a notice from either Party specifying the nature of the dispute;
provided, however, that a dispute relating to Article 15 shall not be subject to
this Section. Unless the executives of the Parties otherwise agree, either Party
may pursue its rights and remedies under Sections 17.05, 17.07 or 17.09 after
the occurrence of such meeting or telephone conversation.

           17.05 Mediation. If the Parties are unable to resolve a dispute under
Sections 17.02 through 17.04, inclusive, then either Party may refer the dispute
to mediation before a mediator reasonably acceptable to both sides, provided,
however, that a dispute relating to Article 15 shall not be subject to this
Section.

           17.06 Confidentiality. Communications, proposals and counter
proposals made by either Party during consultations and review in accordance
with the foregoing Sections 17.02 through 17.05, inclusive, shall be privileged
and confidential offers of compromise within the meaning of Section 1152 of the
California Evidence Code and Rule 408 of the Federal Rules of Evidence, and
shall be inadmissible for any purpose (but this shall not require exclusion of
otherwise admissible evidence, such as records of prior performance, merely
because it is presented in the course of settlement negotiations). No mediator
may be called as a witness by either Party for any purpose, and no mediator's
report or recommendation may be admitted into evidence in any proceeding for any
purpose.

           17.07 Arbitration. Except as otherwise provided below, any dispute
not settled pursuant to Sections 17.02 through 17.05 shall be finally and
exclusively settled by binding arbitration and, unless otherwise agreed by the
Parties, the following procedure:

(1)     The arbitration shall be conducted in accordance with the Commercial
        Arbitration Procedures of the American Arbitration Association then in
        effect (the "Rules"). In the event of any conflict between the Rules and
        the provisions of this Section 17, the provisions of this Section 17
        shall govern.

(2)     If the amount in dispute is [***]* or less, there shall be a sole
        arbitrator chosen by the Parties or, if they are unable to agree within
        thirty (30) days after the demand for arbitration, chosen in accordance
        with the Rules. If the amount in dispute exceeds [***]* (and unless the
        Parties otherwise agree to arbitrate before a sole arbitrator) each
        Party shall appoint one arbitrator within thirty (30) days after receipt
        by the respondent of the demand for arbitration, and the two arbitrators
        so appointed shall, within thirty (30) days after their appointment,
        appoint a third, presiding arbitrator. If either Party fails to nominate
        an arbitrator, or the two arbitrators appointed by the Parties are
        unable to appoint a presiding arbitrator within the stated periods, such
        arbitrator(s) shall be appointed in accordance with the Rules.

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

*Confidential information has been omitted.

                                       21
<PAGE>   29

(3)     The arbitrator or arbitrators shall be (1) retired judges or (2)
        lawyers, executives or professionals with at least five (5) years
        experience in software, data processing, employment law or human
        resources, as appropriate for the particular dispute.

(4)     The arbitration shall be conducted in Los Angeles or Orange County,
        California;

(5)     Either Party may, without inconsistency with this Master Agreement, seek
        from a court any interim or provisional relief that may be necessary to
        protect the rights or property of that Party pending the establishment
        of the arbitral tribunal;

(6)     The arbitrator(s) shall (by majority vote in cases involving three
        arbitrators) render a written decision stating reasons therefor in
        reasonable detail within six (6) months after the respondent receives
        the demand for arbitration. The award shall be final and enforceable and
        may be confirmed by the judgment of a court of competent jurisdiction.

(7)     The arbitrators shall have no authority to award punitive damages or any
        other monetary relief not measured by the prevailing Party's actual
        damages and will not make any decision inconsistent with the terms and
        conditions of this Master Agreement or the relevant Service Agreement.

(8)     If any dispute hereunder involves material issues of law or fact that
        are common to any dispute between the Parties under their Master
        Subcontract, then upon a showing of good cause, proceedings under this
        Section 17 and Article 19.5 of the Master Subcontract may, in the
        discretion of the first arbitrator(s) empanelled, be consolidated in a
        single arbitration (subject in all cases to Section 17.08 below and
        Article 19.7 of the Master Subcontract, concerning intellectual property
        and confidentiality).

           17.08 Certain Disputes. Claims and controversies concerning the
breach, or threatened breach, of provisions of this Agreement concerning
Confidential Information and intellectual property, including ownership,
infringement or misappropriation of proprietary rights may, at the election of
either Party, be decided by a court of competent jurisdiction in the Central
District of California to whose exclusive jurisdiction the Parties hereby
submit. Promptly following filing of an action contemplated by this Section
17.08, any arbitration then pending shall be stayed or terminated, insofar as it
concerns such issues.

           17.09 Fees and Costs. In any legal action or arbitration, the
prevailing Party shall be entitled to recover, in addition to its damages
(subject to limitations stated elsewhere in this Agreement), its reasonable
attorneys' fees, expert witness fees, costs of arbitration, and other ordinary
and necessary costs of litigation, as determined by the court or arbitrators.
Such costs include, without limitation, costs of any legal proceedings brought
to enforce an arbitral award, judgment or decree.

           17.10 Provisional Remedies. The Parties reserve all rights to obtain
provisional remedies that may be available under applicable law from courts of
competent jurisdiction, and no application for any such remedy shall be deemed
inconsistent with the Parties' obligations to consult with one another, mediate
or arbitrate certain disputes, as provided above.

                                       22
<PAGE>   30

ARTICLE 18 TERMINATION.

           18.01 By Exult.

(1)     Exult shall have the option, but not the obligation, to terminate this
        Master Agreement (and/or any Service Agreement affected by the breaches
        described below) only if (A) (1) Unisys fails to pay when due undisputed
        amounts (including, without limitation, amounts determined pursuant to
        Article 17 (Dispute Resolution) to be owing to Exult) that exceed [***]*
        and (2) Unisys fails to cure such failure within [***]* after receipt
        from Exult of written notice thereof; or (B) Unisys intentionally and
        materially infringes, converts or misappropriates any material
        intellectual property right of Exult and fails to cure the infringement
        or misappropriation (if curable) within [***]* after receiving written
        notice from Exult. Exult hereby waives any rights it may have under this
        Agreement, at law or in equity to terminate this Agreement for any
        reasons other than those specified in clauses (A) and (B), above. Exult
        shall exercise its termination option by delivering to Unisys written
        notice of such termination identifying the termination date, which shall
        be at least thirty (30) days from the date such termination notice is
        delivered to Unisys. The termination date shall be subject to extension,
        as provided below.

(2)     If Exult terminates the Master Agreement pursuant to Section 18.01(1),
        all Service Agreements then in effect shall simultaneously terminate.

(3)     If Exult terminates the US Service Agreement pursuant to Section
        18.01(1), Exult shall have the right, at its option, to simultaneously
        terminate the Master Agreement and all other Service Agreements.

(4)     If Exult terminates a Service Agreement other than the US Service
        Agreement pursuant to Section 18.01(1), the Master Agreement and all
        other Service Agreements shall remain in full force and effect.

           18.02 By Unisys.

(1)     Unisys shall have the right to terminate this Master Agreement or one or
        more Service Agreements for cause if Exult fails to perform any of its
        material obligations under the Master Agreement or respective Service
        Agreement(s), as appropriate, and does not cure such default:

        (a)     within [***]* receipt of a notice of default from Unisys, if
                there has been a material failure to provide [***]*; or,

        (b)     in all other cases, within [***]* receipt of notice provided,
                that if breach cannot reasonably be cured within the [***]*, the
                time to cure shall extend for a reasonable additional time, if
                Exult has (i) provided to Unisys a plan to cure such breach,
                (ii) promptly commences to implement such plan, and (iii)
                thereafter diligently prosecutes the plan to completion within
                [***]*

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

*Confidential information has been omitted.

                                       23
<PAGE>   31

        For purposes of this Section 18.02 (including all subparagraphs) "cure"
        includes patches, manual or substitute procedures, workarounds and
        other temporary measures that substantially restore service, so long as
        Exult continues diligent efforts to effect a reasonably complete cure.

(2)     Unisys shall have the right to terminate this Master Agreement or a
        Service Agreement for convenience effective as of any time on or after
        [***]* by giving Exult notice of the termination at least [***]* prior
        to the termination date specified in the notice. Notwithstanding the
        foregoing, Unisys may not terminate this Master Agreement or any Service
        Agreement unless Unisys is current in all undisputed payments then due
        and payable to Exult. If a purported termination for cause by Unisys is
        determined pursuant to Article 18 (Dispute Resolution) not to be a
        proper termination for cause, such termination shall be deemed a
        termination for convenience subject to this Section.

(3)     Unisys shall have the option, but not the obligation, to terminate this
        Master Agreement or, from time to time, one or more affected Service
        Agreements, without payment of a termination charge, if Exult fails to
        perform any Services (excluding disaster recovery services within
        Exult's scope of responsibility) in any material respects because of a
        Force Majeure Event and (1) subject to clause (2) below, Exult does not
        cure such failure within [***]* the occurrence of the Force Majeure
        Event; or (2) such failure is not reasonably subject to cure within
        [***]* such occurrence. Unisys shall exercise its termination option by
        delivering to Exult written notice of such termination identifying the
        termination date. Unisys shall have no right to terminate pursuant to
        this Section to the extent that any failure to restore service is
        attributable to an interruption in or disruption of services provided by
        Unisys to Exult. For purposes of terminating the Master Agreement,
        "material" shall be determined by considering Services as a whole, under
        all Service Agreements, and material failures to perform under the US
        Service Agreement are material to the Services as a whole.

(4)     Unisys shall have the option, but not the obligation, to terminate this
        Master Agreement and all Service Agreements in their entirety if Exult
        becomes or is declared insolvent or bankrupt, is the subject of any
        voluntary proceeding relating to its liquidation, winding-up, insolvency
        or the appointment of a receiver, administrator or similar officer (or
        has such an officer appointed for it), makes an assignment for the
        benefit of all or substantially all of its creditors or enters into an
        agreement for the composition, extension or readjustment of all or
        substantially all of its obligations.

(5)     If Unisys terminates the Master Agreement pursuant to Section 18.02(1)
        through 18.02(4), all Service Agreements then in effect shall
        simultaneously terminate.

(6)     If Unisys terminates the US Service Agreement pursuant to Section
        18.02(1) or 18.02(3), then Exult shall have the right, at its option, to
        terminate the Master Agreement and all other Service Agreements.

(7)     If Unisys terminates a Service Agreement other than the US Service
        Agreement pursuant to Section 18.02(1), the Master Agreement and all
        other Service Agreements shall remain in full force and effect.

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

*Confidential information has been omitted.

                                       24
<PAGE>   32

(8)     If Unisys terminates the Master Agreement pursuant to Section 18.02(2),
        all Service Agreements then in effect shall simultaneously terminate.
        Unisys shall pay to Exult the aggregate of the termination for
        convenience fees set forth in Schedule C to each of the Service
        Agreements.

(9)     If Unisys terminates the US Service Agreement pursuant to Section
        18.02(2), then Exult shall have the right, at its option, to terminate
        (a) the Master Agreement and all other Service Agreements, in which case
        Unisys shall pay to Exult the aggregate of the termination for
        convenience fees set forth in Schedule C to each of the Service
        Agreements or (b) selected Service Agreements, in which case Unisys
        shall pay to Exult the aggregate of the termination for convenience fees
        set forth in Schedule C to each of the terminated Service Agreements.

(10)    If Unisys terminates a Service Agreement other than the US Service
        Agreement pursuant to Section 18.02(2), the Master Agreement and all
        other Service Agreements shall remain in full force and effect. Unisys
        shall pay to Exult the termination for convenience fees set forth in
        Schedule C to the terminated Service Agreement.

(11)    [***]*

(12)    Termination fees, when payable as provided above, shall accompany Unisys
        notice of termination.

           18.03 Termination Assistance. Upon request by Unisys and in
anticipation of the expiration or the termination of this Master Agreement or a
Service Agreement, if all undisputed payments due to Exult under this Master
Agreement and the Service Agreement have been paid, Exult shall provide to
Unisys the services set forth in Schedule T to the Service Agreement (the
"Termination Assistance Services") and otherwise requested by Unisys to effect a
smooth transition. Exult shall provide the Termination Assistance Services for
up to [***]* prior to the termination or expiration of the Master Agreement or
Service Agreement at the rates then in effect; provided, however, that to the
extent such Termination Assistance Services cause Exult to use resources beyond
those otherwise then being provided by Exult as part of the Services or incur
additional costs, such Termination Assistance Services shall constitute and be
performed as New Services. In addition, at Unisys request, Exult shall provide
the Termination Assistance Services for up to [***]* after the effective date of
the termination or expiration of this Master Agreement or the Service Agreement
by Unisys at [***]* rates. The period during which the Termination Assistance
Services are provided, shall be referred to as the "Termination Assistance
Period." Exult shall make reasonable efforts to comply with the Service Levels
during the Termination Assistance Period, for so long as Exult remains
responsible for particular services, but shall have no liability for payment of
any Service Credit for any unexcused failure to meet any Key Performance
Indicator. Unisys shall pay for Termination Assistance Services in accordance
with the terms of this Agreement, without regard to any asserted right to
withhold payment or set off claims (other than good faith claims concerning
charges for Termination Assistance Services). In case of termination for
nonpayment by Unisys, Exult may condition performance of Termination Assistance
Services upon advance payment or other reasonable assurances of payment
reasonably satisfactory to Exult.

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

*Confidential information has been omitted.

                                       25
<PAGE>   33

           18.04 Exit Rights. Upon the expiration or termination of a Service
Agreement Exult shall provide the Termination Assistance Services in accordance
with Section 18.04;

(1)     Unisys shall allow Exult to use, at no charge, those Unisys facilities
        and Unisys assets (including the Unisys Software and the Unisys
        Machines) being used to perform the Termination Assistance Services for
        as long as Exult is providing the Termination Assistance Services;

(2)     Upon the later of the expiration or termination of all of the Service
        Agreements and the end of all of the Termination Assistance Periods, the
        rights granted to Exult in Section 11.03 shall immediately revert to
        Unisys (except to the extent agreed in writing through Addendum No. 1 to
        the Master Subcontract or otherwise); and

(3)     Upon Unisys request, with respect to any contracts applicable to the
        Services being provided to Unisys on a dedicated, full-time basis for
        maintenance, disaster recovery services and other necessary third party
        services being used by Exult to perform the Services as of the date of
        the expiration or termination of the Service Agreement, Exult shall
        transfer or assign such agreements to Unisys or its designee, on terms
        and conditions acceptable to both Parties; provided, however, that
        Unisys provided Exult with reasonable notice prior to entering into such
        contracts that Unisys may desire such transfer or assignment and Unisys
        pays any costs associated with such transfer or assignment.

(4)     Exult shall return all Unisys Data and Unisys Software, in the form
        maintained, or as otherwise reasonably requested by Unisys, when
        required by the relevant Service Agreement, or whenever Unisys otherwise
        requests, at the time of termination or expiration, or at any other
        time. Exult has no right to retain (other than authorized archival
        copies), encrypt, corrupt or destroy any Unisys Data or Unisys Software,
        and waives any and all statutory or common law liens, claims of lien or
        similar rights, remedies or encumbrances that may now or hereafter exist
        and might limit or condition Exult's obligations.

(5)     If Exult breaches, or threatens to breach, its obligation to provide
        Unisys with Termination Assistance, Unisys represents that it would be
        irreparably harmed. In such circumstances, Unisys shall be entitled to
        proceed directly to a court of competent jurisdiction and obtain such
        injunctive, declaratory or other injunctive relief as may be reasonably
        necessary to prevent such breach.

ARTICLE 19 INDEMNITIES.

           19.01 Infringement. Each Party (an "Indemnifying Party") agrees to
indemnify, defend and hold the other Party and its Representatives ("Indemnified
Parties") harmless from and against any and all Losses incurred by an
Indemnified Party arising from any third party claim of United States patent,
trade secret or copyright infringement asserted against the Indemnified Party by
virtue of the Indemnified Party's use of the Indemnifying Party's intellectual
property; provided, however, that (1) the Indemnifying Party is given prompt
notice of any such claim, (2) has the right to control and direct the defense of
such claim and (3) the Indemnified Party fully cooperates with the Indemnifying
Party in such defense, all as provided by Section 19.06, below. No Indemnifying
Party shall have any liability for any claim of infringement that results from
or relates to (a) any modification or enhancement to its intellectual property
by an Indemnified Party,

                                       26
<PAGE>   34

(b) any failure by an Indemnified Party to implement or install the Indemnifying
Party's intellectual property as directed by the Indemnifying Party, (c) the
combination, operation or use of the Indemnifying Party's intellectual property
with third party programs, data or documentation and (d) materials, items,
resources, or services provided or performed by the Indemnified Party (whether
or not used in connection with or incorporated into the Indemnified Party's
software). In the event the Indemnifying Party's intellectual property, in the
Indemnifying Party's opinion, is likely to or do become the subject of a claim
of infringement, the Indemnifying Party shall have the right at its sole option
and expense to (i) modify the allegedly infringing intellectual property to be
non-infringing, (ii) obtain for the Indemnified Party a license to continue
using the allegedly infringing intellectual property or (iii) terminate the
license granted hereunder with respect to the allegedly infringing intellectual
property and refund to the Indemnified Party a pro rata portion of the fee paid,
if any, for that portion of the allegedly infringing intellectual property,
respectively, which is the subject of such infringement, such portion based on a
straight line depreciation over a five-year term beginning on the delivery of
such portion of the intellectual property to the Indemnified Party.

           19.02 Personal Injury and Property Damage By Exult. Exult agrees to
indemnify, defend and hold Unisys harmless, from and against any and all Losses
incurred by Unisys arising from any third party claim for (1) bodily injuries
to, including fatal injury or disease to, Exult employees and (2) damage to
tangible real or personal property of Exult and Exult employees arising from or
in connection with negligent acts or omissions of Exult and its Representatives
in connection with this Master Agreement or the Service Agreement.

           19.03 Personal Injury and Property Damage By Unisys. Unisys agrees to
indemnify, defend and hold Exult and Exult Representatives harmless, from and
against any and all Losses arising from any third party claim for (1) bodily
injuries to, including fatal injury or disease to, Unisys employees and (2)
damage to tangible real or personal property of Unisys and Unisys employees
arising from or in connection with negligent acts or omissions of Unisys and its
Representatives in connection with this Master Agreement or the Service
Agreement.

           19.04 By Unisys. Unisys agrees to indemnify, defend and hold Exult
and Exult Representatives harmless from and against any and all Losses arising
from any third party claim relating to: (1) any amounts, including taxes,
interest and penalties which are obligations of Unisys pursuant to Section
12.03; (2) any breach or default by Unisys in the performance of Unisys
obligations under agreements with third parties; (3) any breach of Unisys
representations and warranties in this Agreement, any Service Agreement, or
Schedule to this Agreement or any Service Agreement; (4) any violations of law
by Unisys; (5) Unisys failure to perform any obligations required to be
performed by it under any contracts assigned or otherwise transferred to Exult,
which obligations arose before the transfer or are specifically excluded from
the transfer; and (6) any business practices or negligent acts or omissions by
Unisys that cause liability to any third party and for which Exult is asserted
to be responsible by virtue of its financial, administrative or management
responsibilities under the Master Agreement or any Service Agreement.

           19.05 By Exult. Exult agrees to indemnify, defend and hold Unisys and
Unisys Representatives harmless from and against any and all Losses arising from
any third party claim relating to: (1) Exult's failure to perform any
obligations required to be performed by it under any contracts assigned or
otherwise transferred to Exult, after assignment or transfer, (2) Claims arising
out of or related to occurrences Exult is required to insure against pursuant to
Article 21 (Insurance), (3) any breach or default by Exult in the performance of
Exult's obligations under agreements with third parties; (4) any breach of
Exult's representations and warranties in this

                                       27
<PAGE>   35

Agreement, any Service Agreement, or Schedule to this Agreement or any Service
Agreement; and (5) any violations of law by Exult; and (6) any business
practices or negligent acts or omissions by Exult that cause liability to any
third party and for which Unisys is asserted to be responsible by virtue of its
financial, administrative or management responsibilities under the Master
Agreement or any Service Agreement.

           19.06 Indemnification Procedures. If any third party claim is
commenced against an Indemnified Party under Sections 19.01 through 19.05,
inclusive, notice thereof shall be given to the Indemnifying Party as promptly
as practicable. If, after such notice, the Indemnifying Party shall acknowledge
that this Section applies with respect to such claim, then the Indemnifying
Party shall be entitled, if it so elects, in a notice promptly delivered to the
Indemnified Party, but in no event less than ten (10) days prior to the date on
which a response to such claim is due, to immediately take control of the
defense and investigation of such claim and to employ and engage attorneys
reasonably acceptable to the Indemnified Party to handle and defend the same, at
the Indemnifying Party's sole cost and expense. Where conflicting interests so
require, the Indemnified Party shall have separate counsel, at the Indemnifying
Party's expense. The Indemnified Party shall cooperate, at the cost of the
Indemnifying Party, in all reasonable respects with the Indemnifying Party and
its attorneys in the investigation, trial and defense of such claim and any
appeal arising therefrom; provided, however, that the Indemnified Party may, at
its own cost and expense, participate, through its attorneys or otherwise, in
such investigation, trial and defense of such claim and any appeal arising
therefrom. No settlement of a claim pursuant to this Section that involves a
remedy other than the payment of money by the Indemnifying Party shall be
entered into without the consent of the Indemnified Party, which consent shall
not be unreasonably withheld. After notice by the Indemnifying Party to the
Indemnified Party of its election to assume full control of the defense of any
such claim, the Indemnifying Party shall not be liable to the Indemnified Party
for any legal expenses incurred thereafter by such Indemnified Party in
connection with the defense of that claim. If the Indemnifying Party does not
assume full control over the defense of a claim subject to such defense as
provided in this Section, the Indemnifying Party may participate in such
defense, at its sole cost and expense, and the Indemnified Party shall have the
right to defend the claim in such manner as it may deem appropriate, at the cost
and expense of the Indemnifying Party.

           19.07 Subrogation. In the event that a Party is obligated to
indemnify the other Party pursuant to Sections 19.01 through 19.05, the
Indemnifying Party shall, upon payment of such indemnity in full, be subrogated
to all rights of the Indemnified Party with respect to the claims and defenses
to which such indemnification relates.

ARTICLE 20 DAMAGES.

           20.01 Direct Damages.

(1)     ANY AND ALL CLAIMS ASSERTING LIABILITY OF EITHER PARTY OR ITS
        REPRESENTATIVES TO THE OTHER PARTY OR ANY THIRD PARTY ARISING FROM OR IN
        CONNECTION WITH A SERVICE AGREEMENT OR THE LICENSE OR USE OF THE EXULT
        SOFTWARE, UNISYS SOFTWARE OR THE NEW INTELLECTUAL PROPERTY OR THE
        PROVISION OF SERVICES UNDER SUCH SERVICE AGREEMENT, HOWEVER CAUSED,
        REGARDLESS OF THE FORM OF ACTION AND ON ANY THEORY OF LIABILITY,
        INCLUDING CONTRACT, STRICT LIABILITY, NEGLIGENCE OR OTHER TORT, SHALL BE
        BROUGHT UNDER THE APPLICABLE SERVICE AGREEMENT.

                                       28
<PAGE>   36

(2)     THE ENTIRE LIABILITY OF (a) EXULT AND EXULT REPRESENTATIVES TO UNISYS OR
        ANY THIRD PARTY AND (b) UNISYS AND UNISYS REPRESENTATIVES TO EXULT OR
        ANY THIRD PARTY, IN EACH CASE ARISING FROM OR IN CONNECTION WITH A
        SERVICE AGREEMENT AND THE LICENSES AND USE OF THE SOFTWARE AND THE NEW
        INTELLECTUAL PROPERTY AND THE PROVISION OF SERVICES UNDER SUCH SERVICE
        AGREEMENT, HOWEVER CAUSED, REGARDLESS OF THE FORM OF ACTION AND ON ANY
        THEORY OF LIABILITY, INCLUDING CONTRACT, STRICT LIABILITY, NEGLIGENCE OR
        OTHER TORT, SHALL BE [***]*.

(3)     IN NO EVENT SHALL THE ENTIRE LIABILITY OF (a) EXULT AND EXULT
        REPRESENTATIVES COLLECTIVELY OR (b) UNISYS, AND UNISYS REPRESENTATIVES
        COLLECTIVELY, IN EACH CASE UNDER ARISING FROM OR IN CONNECTION WITH THIS
        MASTER AGREEMENT, ALL OF THE SERVICE AGREEMENTS, THE LICENSE OR USE OF
        THE EXULT SOFTWARE, UNISYS SOFTWARE, THE NEW INTELLECTUAL PROPERTY, AND
        THE PROVISION OF SERVICES UNDER THIS MASTER AGREEMENT AND ALL SERVICE
        AGREEMENTS EXCEED [***]*.

(4)     Notwithstanding section 20.01(1), section 20.01(2) and section 20.01(3),
        neither Party shall be liable for or seek recovery for any damages
        arising from or in connection with this Master Agreement or a Service
        Agreement and the licenses and use of the software and the New
        Intellectual Property and the provision of Services under this master
        agreement or a service agreement to the extent such damages are less
        than [***]*.

(5)     Exult shall have no liability for damages to the extent attributable to
        deficiencies in Unisys systems, prior to completion of transition for
        relevant business processes.

           20.02 Consequential Damages. IN NO EVENT SHALL EITHER PARTY HAVE ANY
LIABILITY, REGARDLESS OF THE FORM OF ACTION AND ON ANY THEORY OF LIABILITY,
INCLUDING CONTRACT, STRICT LIABILITY, NEGLIGENCE OR OTHER TORT, FOR ANY LOSS OF
INTEREST, PROFIT OR REVENUE BY THE OTHER PARTY OR FOR ANY CONSEQUENTIAL,
INDIRECT, INCIDENTAL, SPECIAL, PUNITIVE OR EXEMPLARY DAMAGES SUFFERED BY THE
OTHER PARTY, ARISING FROM OR RELATED TO THIS MASTER AGREEMENT OR A SERVICE
AGREEMENT, EVEN IF SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH LOSSES
OR DAMAGES.

           20.03 Exclusions and Limitations.

(1)     The limitations and exclusions of liability set forth in this Article
        are not applicable to the obligation or failure of Unisys to make
        payments due or past due under this Master Agreement or a Service
        Agreement. In addition, in no event shall either Party or its
        Representatives be liable for any damages if, and to the extent, caused
        by the other Party's failure to perform its responsibilities, as set
        forth in this Master Agreement or the Service Agreements.

(2)     In no event shall Exult or Exult Representatives be responsible or
        liable for (a) any corruption, damage, loss or mistransmission of data,
        (b) the security of data during transmission via public
        telecommunications facilities or (c) the content of any data provided by
        Unisys or Unisys Representatives.

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

*Confidential information has been omitted.

                                       29
<PAGE>   37

(3)     The limitations and exclusions of liability set forth in this Article
        are not applicable to direct damage to tangible property or injury to
        persons, including death, caused by and to the extent of the negligent
        acts or omissions of either Party.

(4)     The limitations in this Article shall not apply to claims that concern
        or relate to (1) intentional infringement of either Party's intellectual
        property rights, (2) misappropriation or conversion of the other Party's
        intellectual property rights or (3) intentional, wrongful disclosure of
        the other Party's Confidential Information.

(5)     [***]*

               20.04 Mitigation. Each Party shall have a duty to mitigate
damages for which the other Party is liable.

               20.05 Acknowledgment. Exult and Unisys each acknowledge that the
limitations and exclusions set forth in this Master Agreement and the Service
Agreements have been the subject of active and complete negotiations between the
Parties and represent the Parties' agreement based upon the level of risk to
Exult and Unisys associated with their respective obligations under this Master
Agreement and the Service Agreements and the payments made to Exult pursuant to
this Master Agreement and the Service Agreements.

ARTICLE 21 INSURANCE.

           21.01 Insurance. During the Master Term, Exult shall obtain and
maintain at its own expense, insurance of the type and in the amounts set forth
below:

(1)     statutory workers' compensation for Exult's employees in accordance with
        all Federal, state and local requirements;

(2)     commercial general liability (including contractual liability insurance)
        ($2,000,000);

(3)     professional liability [***]*;

(4)     umbrella liability [***]*

(5)     automobile liability [***]*; and

(6)     property damage [***]*.

           21.02 Insurance Documentation. To the extent third party insurance is
obtained or maintained pursuant to Section 21.01, Exult shall, upon Unisys
request, furnish to Unisys certificates of insurance or other appropriate
documentation (including evidence of renewal of insurance) evidencing all
coverages referenced in Section 21.01 and, if and to the extent applicable,
naming Unisys as an additional insured. Such certificates or other documentation
shall include a provision whereby 30 days' notice must be received by Unisys
prior to coverage cancellation or material alteration of the coverage by either
Exult or the applicable insurer. Such cancellation or

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

*Confidential information has been omitted.

                                       30
<PAGE>   38

material alteration shall not relieve Exult of its continuing obligation to
maintain insurance coverage in accordance with this Article.

           21.03 Risk of Loss. Each Party shall be responsible for risk of loss
of, and damage to, any Equipment, Software or other materials in its possession
or under its control.

ARTICLE 22 MISCELLANEOUS PROVISIONS.

           22.01 Notices. Except as otherwise specified in this Master Agreement
or a Service Agreement, all notices, requests, consents, approvals, agreements,
authorizations, acknowledgements, waivers and other communications required or
permitted under this Master Agreement and the Service Agreements shall be in
writing and shall be deemed given when sent by facsimile to the facsimile number
specified below or delivered by hand to the address specified below. A copy of
any such notice shall also be sent by express air mail on the date such notice
is transmitted by facsimile to the address specified below:

           In the case of Unisys:

                  Unisys Corporation

                  1 Unisys Way
                  Blue Bell, Pennsylvania 19424-0001
                  [***]*
                  [***]*

           In the case of Exult:

                  Exult, Inc.
                  4 Park Plaza, Suite 1000
                  Irvine, California 92614
                  [***]*
                  [***]*
                  [***]*

Either Party may change its address or facsimile number for notification
purposes by giving the other Party ten (10) days' notice of the new address or
facsimile number and the date upon which it shall become effective.

           22.02 Assignment and Third Party Beneficiaries. Neither Party,
without the consent of the other Party, assign this Master Agreement or any
Service Agreement or any of its rights under this Master Agreement or any
Service Agreement, in whole or in part, and may not delegate its obligations
under this Master Agreement or any Service Agreement (except for permitted
subcontracts), provided, that in the event of an assignment arising from a
Change of Control of Exult, no consent shall be required and Unisys sole rights
shall be termination in

                                       31
<PAGE>   39

accordance with Sections 18.02(2) (for convenience) and 18.02(11) (for
convenience following certain Changes of Control). Any such purported assignment
or delegation in contravention of this Section shall be null and void. Each
Party intends that this Master Agreement and the Service Agreement shall not
benefit, or create any right or cause of action in or on behalf of, any person
or entity other than the Parties.

           22.03 Relationship. The Parties intend to create an independent
contractor relationship and nothing contained in this Master Agreement or any
Service Agreement shall be construed to make either Unisys or Exult partners,
joint venturers, principals, Representatives or employees of the other. No
officer, director, employee or Exult Representative retained by Exult to perform
work on Unisys behalf under this Master Agreement or any Service Agreement shall
be deemed to be an employee of Unisys or a Unisys Representative. Neither Party
shall have any right, power or authority, express or implied, to bind the other.
Exult shall have the sole right to supervise, manage, contract, direct, procure,
perform or cause to be performed, all work to be performed by Exult under this
Master Agreement and the Service Agreements.

           22.04 Severability and Waivers. If any provision of this Master
Agreement or the Service Agreements is held by arbitrator(s) or a court of
competent jurisdiction to be contrary to Law, then the remaining provisions of
this Master Agreement or the Service Agreements, if capable of substantial
performance, shall remain in full force and effect. No delay or omission by
either Party to exercise any right or power it has under this Master Agreement
or the Service Agreements shall impair or be construed as a waiver of such right
or power. A waiver by any Party of any breach or covenant shall not be construed
to be a waiver of any succeeding breach or any other covenant. All waivers must
be signed by the Party waiving its rights.

           22.05 Survival. The terms of Articles and Sections 4.14, 11.01,
11.05, 12.07, 13, 15, 16.05, 17, 18.04, 18.05, 19, 20, 22.01 through 22.07
(inclusive), 22.13, 22.14 and all other provisions of this Master Agreement or
any Service Agreement that contemplate observance or performance after
expiration or termination shall survive the expiration or termination of this
Master Agreement and the Service Agreements.

           22.06 Governing Law. This Master Agreement and the Service Agreements
and the rights and obligations of the Parties under this Master Agreement and
the Service Agreements shall be governed by and construed in accordance with the
Laws of California, without giving effect to the principles thereof relating to
the conflicts of Laws.

           22.07 Sole and Exclusive Venue. Subject to the provisions of Article
15, each Party irrevocably agrees that any legal action, suit or proceeding
brought by it in any way arising out of this Master Agreement or the Service
Agreements must be brought solely and exclusively in United States District
Court for the Central District of California or in the state courts of the State
of California and irrevocably accepts and submits to the sole and exclusive
jurisdiction of each of the aforesaid courts in personam, generally and
unconditionally with respect to any action, suit or proceeding brought by it or
against it by the other Party; provided, however, that this Section shall not
prevent a Party against whom any legal action, suit or proceeding is brought by
the other Party from seeking to remove such legal action, suit or proceeding,
pursuant to applicable federal law, to the district court of the United States
of America for the district and division embracing the place where the action is
pending in the state courts of California , and in the event an action is so
removed each Party irrevocably accepts and submits to the jurisdiction of the
aforesaid district court. Each Party hereto further irrevocably consents to the
service of process from any of the aforesaid courts by mailing copies thereof by
registered or certified mail, postage prepaid, to such

                                       32
<PAGE>   40

Party at its address designated pursuant to this Master Agreement or the Service
Agreement, with such service of process to become effective 30 days after such
mailing.

           22.08 Force Majeure.

(1)     If and to the extent that a Party's performance of any of its
        obligations pursuant to this Agreement is prevented, hindered or delayed
        by fire, flood, earthquake, elements of nature or acts of God, acts of
        war, terrorism, riots, civil disorders, rebellions or revolutions, or
        any other similar cause beyond the reasonable control of such Party
        (each, a "Force Majeure Event"), and such non-performance, hindrance or
        delay could not have been prevented by reasonable precautions, then the
        non-performing, hindered or delayed Party shall be excused for such
        non-performance, hindrance or delay, as applicable, of those obligations
        affected by the Force Majeure Event for as long as such Force Majeure
        Event continues and such Party continues to use its best efforts to
        recommence performance whenever and to whatever extent possible without
        delay, including through the use of alternate sources, workaround plans
        or other means. The Party whose performance is prevented, hindered or
        delayed by a Force Majeure Event shall immediately notify the other
        Party of the occurrence of the Force Majeure Event and describe in
        reasonable detail the nature of the Force Majeure Event.

(2)     If any Force Majeure Event prevents, hinders or delays performance of
        the Services for more than two (2) days, Unisys may procure such
        Services from an alternate source and Exult shall reimburse Unisys for
        the costs and expenses incurred by Unisys in procuring such Services.

(3)     Except as provided in Section 22.08(2), above, nothing in this Article
        shall limit Unisys obligation to pay any Fees due Exult under this
        Agreement; provided, however, that if Exult fails to provide the
        Services in accordance with this Master Agreement or any Service
        Agreement due to the occurrence of a Force Majeure Event, the Fees shall
        be adjusted in a manner such that Unisys is not responsible for the
        payment of any Fees for Services that Exult fails to provide.

Whenever a Force Majeure Event requires Exult to allocate limited resources
between or among Exult's customers, Exult will allocate those resources
equitably, so that no Exult customer receiving services similar to the Services
has any greater priority in the restoration of those services.

           22.09 Nonperformance. In the event that Exult's performance of the
Services requires or is contingent upon Unisys performance of an obligation
under this Master Agreement or a Service Agreement, and Unisys delays or
withholds such performance beyond the agreed-upon time period (or beyond five
days, if a time period is not specified), the time for the performance of
Exult's obligations shall be extended for the period of such delay in, or
withholding of, performance.

           22.10 Right to Provide Services. Subject to Section 4.14, above, each
Party recognizes that Exult personnel providing services to Unisys under this
Master Agreement and the Service Agreements may perform similar services for
others and neither this Master Agreement nor the Service Agreements shall
prevent Exult from using the personnel and equipment provided to Unisys under
this Master Agreement or the Service Agreements for such purposes.

                                       33
<PAGE>   41

           22.11 Right to Manage Performance. Exult has the sole right to
supervise, manage, contract, direct, procure, perform or cause to be performed
all work and services to be performed by Exult.

           22.12 Further Assurances. Each of the Parties acknowledges and agrees
that, subsequent to the execution and delivery of this Master Agreement and the
Service Agreements and without any additional consideration, each of the Parties
shall execute and deliver any further legal instruments and perform any actions
which are or may become necessary to effectuate the purposes of this Master
Agreement or the Service Agreements.

           22.13 Solicitation. During the Service Agreement Terms [***]* neither
Party shall directly solicit any employees of the other Party without such
Party's consent (except as otherwise permitted by Schedule J to any Service
Agreement concerning Termination Assistance).

           22.14 Limitation Period. Neither Party may bring an action,
regardless of form, arising out of this Master Agreement or the Service
Agreements more than [***]* after the cause of action has arisen or the date
such cause of action was or should have been discovered.

           22.15 Negotiated Terms. The Parties agree that the terms and
conditions of this Master Agreement and the Service Agreements are the result of
negotiations between the Parties and that neither this Master Agreement nor the
Service Agreements shall be construed in favor of or against any Party by reason
of the extent to which any Party or its professional advisors participated in
the preparation of this Master Agreement or the Service Agreements.

           22.16 Consents, Approvals and Requests. Except as specifically set
forth in this Master Agreement or a Service Agreement, all consents, approvals,
notices, requests and similar actions to be given by either Party under this
Master Agreement or a Service Agreement shall not be unreasonably withheld or
delayed and each Party shall make only reasonable requests under this Master
Agreement and the Service Agreements.

           22.17 Entire Agreement; Amendments; Counterparts. This Master
Agreement and the Service Agreements represent the entire agreement between the
Parties with respect to their subject matter, and there are no other
representations, understandings or agreements between the Parties relative to
such subject matter. No amendment to, or change, waiver or discharge of, any
provision of this Master Agreement or the Service Agreements shall be valid
unless in writing and signed by an authorized representative of each of the
Parties. This Master Agreement and the Service Agreements may be executed in any
number of counterparts, each of which shall be deemed an original, but all of
which taken together shall constitute one single agreement between the Parties.

                             *   *   *   *

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

*Confidential information has been omitted.

                                       34
<PAGE>   42

        IN WITNESS WHEREOF, each of Unisys and Exult has caused this Master
Agreement to be signed and delivered by its duly authorized representative.

                                       UNISYS CORPORATION

                                       By:
                                           ------------------------------------
                                           Name: David O. Aker
                                           Title:  Senior Vice President,
                                           Worldwide Human Relations

                                       EXULT, INC.

                                       By:
                                           ------------------------------------
                                           Name:  Scott J. Figge
                                           Title: Vice President

                                       35
<PAGE>   43

                             SCHEDULE Z DEFINITIONS

(1)     "Approved Auditors" shall have the meaning set forth in Section 13.02.

(2)     "Change" shall have the meaning set forth in Section 7.01(1).

(3)     "Change Control Management" shall mean the written description of how
        Changes shall be implemented under this Master Agreement and the
        Services Agreements as set forth in Schedule K.

(4)     "Change Order" shall mean a document agreed upon by the Parties (1)
        implementing a Change or (2) adding a New Service under a Service
        Agreement.

(5)     "Confidential Information" shall mean (1) with respect to Unisys, any
        information, technical data or know-how of Unisys which is identified by
        Unisys as confidential at the time of disclosure, (2) with respect to
        Exult, any information, technical data or know-how of Exult disclosed by
        or relating to Exult, including the Exult Software, and (3) with respect
        to Unisys and Exult, the terms of this Master Agreement and the Service
        Agreement.

(6)     "Consents" shall mean all licenses, consents, authorizations and
        approvals that are necessary to allow Exult and Exult Representatives to
        use Unisys owned, licensed and leased assets, including the Unisys
        Software and the Unisys Machines.

(7)     "Contract Year" shall mean the twelve month period from September 1
        through August 31 of the following calendar year.

(8)     "Designated Unisys Competitors" shall mean shall mean the companies
        identified by Schedule E and their successors. Unisys may update
        Schedule E once in each Contract Year to substitute no more than two (2)
        competitors, by written notice to Exult, but (i) the total number of
        Designated Unisys Competitors shall not exceed eleven (11).

(9)     "Exult" shall mean Exult, Inc, a Delaware corporation, having its
        principal place of business at 4 Park Plaza, Suite 1000, Irvine,
        California 92614.

(10)    "Exult Affiliate" shall mean any entity that, directly or indirectly,
        Controls, is Controlled by or is under common Control with Exult.

(11)    "Exult Client Service Centers" shall mean those Exult facilities from
        which Exult provides processing services to Unisys.

(12)    "Exult Country Client Executive" shall have the meaning set forth in
        Section 4.03(2).

(13)    "Exult Global Client Executive" shall have the meaning set forth in
        Section 4.03(1).

                                       1
<PAGE>   44

(14)    "Exult Key Employees" shall mean Exult's Global Client Executive, US
        Country Executive, and finance manager, and such other positions as may
        be identified from time to time by mutual agreement.

(15)    "Exult Machines" shall mean the Machines owned or leased by Exult that
        are used in connection with the Services.

(16)    "Exult Proprietary Software" shall mean the Software owned or developed
        by or on behalf of Exult that is used in connection with the Services.

(17)    "Exult Representatives" shall mean Exult Affiliates and subcontractors,
        suppliers and agents of Exult and Exult Affiliates.

(18)    "Exult Software" shall mean the Exult Proprietary Software and the Exult
        Third Party Software, collectively.

(19)    "Exult Third Party Software" shall mean the Software licensed or leased
        by Exult from a third party that is used in connection with the
        Services.

(20)    "Fees" shall have the meaning set forth in Section 12.01 of the Master
        Agreement.

(21)    "Force Majeure Event" shall have the meaning set forth in Section 22.08.

(22)    "Governmental Authority" shall mean any international, national,
        provincial, municipal, local, territorial or other governmental
        department, regulatory authority, judicial or administrative body,
        domestic, international or foreign.

(23)    "Indemnified Party" shall have the meaning set forth in Section 19.05.

(24)    "Indemnifying Party" shall have the meaning set forth in Section 19.05.

(25)    "Initial Master Agreement Expiration Date" shall have the meaning set
        forth in Section 3.01.

(26)    "Initial Service Agreement Expiration Date" shall have the meaning set
        forth in Section 3.01 of the Service Agreement.

(27)    "Key Performance Indicator" shall mean the performance level that must
        be met to avoid a financial or business impact to Unisys as further
        described in Schedule B to the Service Agreement.

(28)    "Law" shall mean any declaration, decree, directive, legislative
        enactment, order, ordinance, regulation, rule or other binding
        requirement of or by any Governmental Authority.

(29)    Listed Unisys Competitors shall mean the companies identified by
        Schedule I, as updated in accordance with Section 4.14.

(30)    "Losses" shall mean any and all damages, fines, penalties, deficiencies,
        losses, liabilities (including settlements and judgments) and expenses
        (including interest,

                                       2
<PAGE>   45

        court costs, reasonable fees and expenses of attorneys, accountants and
        other experts or other reasonable fees and expenses of litigation or
        other proceedings or of any claim, default or assessment).

(31)    "Machines" shall mean computers and related equipment, including central
        processing units and other processors, controllers, modems,
        communications and telecommunications equipment (voice, data and video),
        cables, storage devices, printers, terminals, other peripherals, input
        and output devices, and other tangible mechanical and electronic
        equipment intended for the processing, input, output, storage,
        manipulation, communication, transmission and retrieval of information
        and data.

(32)    "Managed Agreements" shall mean the third party agreements relating to
        services provided to Unisys which Exult shall manage and administer on
        Unisys behalf.

(33)    "Master Agreement" shall have the meaning set forth in the Preamble.

(34)    "Master Agreement Effective Date" shall mean September 1, 2000.

(35)    "Master Agreement Date" shall have the meaning set forth in the
        Preamble.

(36)    "Master Subcontract" shall mean the Master Subcontract between Exult and
        Unisys dated as of December 31, 1999.

(37)    "Master Term" shall have the meaning set forth in Section 3.01.

(38)    "Master Transition Plan" shall mean the detailed description of the
        obligations of each Party in respect of the transition of the Services
        from Unisys to Exult as set forth in Schedule G.

(39)    "New Intellectual Property" shall mean any (a) Software and (b) literary
        works or other works of authorship, including documentation, reports,
        drawings, charts, graphics and other written documentation, in each
        instance, that is/are created by Exult for Unisys pursuant to this
        Master Agreement or a Service Agreement.

(40)    "New Service(s)" shall mean (a) any service that is not expressly
        included in Schedule A to the relevant Service Agreement and that Exult
        has the capability of performing or (b) services included in Schedule A
        to the US Service Agreement but which are to be provided to an entity
        not receiving such Services as of Master Agreement Effective Date.

(41)    "Non-US Service Agreement" shall have the meaning set forth in Section
        1.01.

(42)    "Parties" shall mean Unisys and Exult, collectively.

(43)    "Party" shall mean either Unisys or Exult, as the case may be.

(44)    "Process(es)" mean one or more of the seventeen (17) business processes
        identified in Section 2 to Schedule A to the US Service Agreement.

                                       3
<PAGE>   46

(45)    "Process Take On Date" means 00:01 A.M. local time on the day on which
        Exult assumes responsibility for delivery of the applicable Process
        pursuant to the applicable Transition Plan.

(46)    "Project Staff" shall mean the personnel of Exult and Exult
        Representatives who provide the Services.

(47)    "Related Documentation" shall mean, with respect to Software, all
        materials, documentation, specifications, technical manuals, user
        manuals, flow diagrams, file descriptions and other written information
        that describes the function and use of such Software, as applicable.

(48)    "Renewal Period" shall have the meaning set forth in Section 3.03.

(49)    "Reporting Service Levels" shall mean the quantitative and qualitative
        performance levels used to measure Exult's performance of services as
        further described in Schedule B to the Services Agreement.

(50)    "Representatives" shall mean Unisys Representatives or Exult
        Representatives, as the case may be.

(51)    "Service Agreement(s)" shall have the meaning set forth in Section 1.01.

(52)    "Service Agreement Effective Date" shall have the meaning set forth in
        Section 3.01 of the Service Agreement.

(53)    "Service Agreement Term" shall mean the term of a Service Agreement.

(54)    "Service Levels" shall have the mean the Reporting Service Levels and
        the Key Performance Indicators, collectively.

(55)    "Services" shall have the meaning set forth in Section 4.01 of the
        Service Agreement.

(56)    "Software" shall mean the object and source code versions of any
        applications programs, operating system software, computer software
        languages, utilities, other computer programs and Related Documentation,
        in whatever form or media, including the tangible media upon which such
        applications programs, operating system software, computer software
        languages, utilities, other computer programs and Related Documentation
        are recorded or printed.

(57)    Steering Committee shall mean the committee created under Section 4.07.

(58)    "Systems" shall mean the Software and the Machines, collectively, used
        to provide the Services.

(59)    "Termination Assistance Period" shall have the meaning set forth in
        Section 18.04.

(60)    "Termination Assistance Services" shall have the meaning set forth in
        Section 18.04.

                                       4
<PAGE>   47

(61)    "Third Party Contracts" shall mean the Managed Agreements and the
        Transferred Agreements, collectively.

(62)    "Transferred Agreements" shall mean the third party agreements relating
        to services provided to Unisys for which Exult shall have financial and
        administrative responsibility.

(63)    "Transition Period" shall have the meaning set forth in the Master
        Transition Plan.

(64)    "Transition Plan" shall mean the detailed description of the obligations
        of each Party in respect of the transition of the services in respect of
        each Service Agreement as set forth in Schedule G to a Service
        Agreement.

(65)    "Unisys" shall mean Unisys Corporation a Delaware corporation having its
        principal place of business at Township Line and Union Meeting Roads,
        Blue Bell, Pennsylvania 19424, and the Unisys Affiliates.

(66)    "Unisys Affiliate" shall mean any entity that, directly or indirectly,
        Controls, is Controlled by or is under common Control with Unisys.

(67)    "Unisys Client Executive" shall have the meaning set forth in Section
        10.01(2).

(68)    "Unisys Data" shall have the meaning set forth in Section 14.01.

(69)    "Unisys Global Client Executive" shall have the meaning set forth in
        Section 10.01(1).

(70)    "Unisys Machines" shall mean the Machines owned or leased by Unisys that
        are listed in Schedule V to the Service Agreement, as may be modified by
        agreement of the Parties from time to time during the Service Agreement
        Term.

(71)    "Unisys Network" shall mean Unisys internal computing network.

(72)    "Unisys Proprietary Software" shall mean the Software owned by Unisys
        that is listed in Schedule F to the Service Agreement, as may be
        modified by agreement of the Parties from time to time during the
        Service Agreement Term.

(73)    "Unisys Representatives" shall mean contractors and agents of Unisys.

(74)    "Unisys Software" shall mean the Unisys Proprietary Software and the
        Unisys Third Party Software, collectively.

(75)    "Unisys Third Party Software" shall mean the Software licensed or leased
        by Unisys from a third party that is listed in Schedule F to the Service
        Agreement, as may be modified by agreement of the Parties from time to
        time during the Service Agreement Term.

(76)    "US Service Agreement" shall have the meaning set forth in Section 1.01.

                                       5
<PAGE>   48

(77)    "Use" shall mean the right to load, execute, store, transmit, display,
        copy, maintain, modify, enhance, create derivative works, make and have
        made.

(78)    "Year 2000 Ready" means that a product so designated, when used in
        accordance with the applicable product documentation provided by Unisys,
        shall be able to accurately process date data (including, but not
        limited to, calculating, comparing, and sequencing) from, into and
        between the 20th and 21st centuries and 1999 and 2000, including leap
        year calculations, provided that all third party products used in
        combination with the product properly exchange date data with it, and
        provided further that no unauthorized modification has been made to such
        product.

                                       6
<PAGE>   49

PROPRIETARY AND CONFIDENTIAL                                        UNISYS/EXULT
--------------------------------------------------------------------------------

                        UNITED STATES SERVICES AGREEMENT

                                   SCHEDULE A

                             DESCRIPTION OF SERVICES

--------------------------------------------------------------------------------
US Sch. A                                                                 EXULT
Final

<PAGE>   50

PROPRIETARY AND CONFIDENTIAL                                        UNISYS/EXULT
--------------------------------------------------------------------------------

                                TABLE OF CONTENTS

<TABLE>
<S>                                                                                                  <C>
1       INTRODUCTION..................................................................................1

2       HUMAN RESOURCES SERVICES......................................................................1

        2.1     TOTAL COMPENSATION....................................................................1
                2.1.1       Compensation..............................................................1
                2.1.2       Benefits..................................................................1
                2.1.3       Payroll...................................................................2

        2.2     EMPLOYEE DATA MANAGEMENT..............................................................2
                2.2.1       Employee Data and Records Management......................................2
                2.2.2       HR Information Technology and Information Services ("HRIT")...............2

        2.3     WORKFORCE PLANNING....................................................................2
                2.3.1       Resourcing/Recruiting/Staffing............................................2
                2.3.2       Expatriate Relocation and Administration..................................3
                2.3.3       Domestic Relocation Administration........................................3
                2.3.4       Severance.................................................................3

        2.4     ORGANIZATION AND PEOPLE DEVELOPMENT...................................................3
                2.4.1       Organization Development..................................................3
                2.4.2       Performance Management....................................................3
                2.4.3       Employee Development......................................................3
                2.4.4       Policy and Legal Compliance...............................................4

        2.5     WORKFORCE SERVICES....................................................................4
                2.5.1       HR Strategy...............................................................4
                2.5.2       Labor Relations...........................................................4
                2.5.3       Employee Relations........................................................4
</TABLE>

                                       1

<PAGE>   51

PROPRIETARY AND CONFIDENTIAL                                        UNISYS/EXULT
--------------------------------------------------------------------------------

                                   SCHEDULE A

                             DESCRIPTION OF SERVICES

1       INTRODUCTION

        This Schedule describes certain duties, obligations and responsibilities
        of Exult and of Unisys in performing the Services.

        Except where specifically set out in the applicable Transition Plan,
        from the Process Take On Date, Exult shall provide each Process included
        in the Services [***]*

        Exult shall assume responsibility for each of the Processes set out in
        this Schedule on the applicable Process Take On Date. The following
        legend applies for all tables in this Schedule A.

                                      Table Legend

                        X       Performs Responsibility

                        A       Approves

2       HUMAN RESOURCES SERVICES

        Exult and Unisys will perform the Human Resources ("HR") services as
        defined in this Section 2. For responsibilities where there is no
        identification of the service to be provided, Exult and Unisys will
        provide the Service [***]*

        2.1     TOTAL COMPENSATION

                2.1.1   Compensation

                Compensation is the development of compensation strategy, plan
                designs, administration of plans, communication of those plans,
                and third party vendor management. The function ensures and
                administers the various compensation programs that range from
                base pay, executive compensation, variable pay programs and
                other business-needs based pay plans. Additionally, the function
                determines the appropriate competitive level and mix of base
                pay, short-term incentives and long term incentives.

                [***]*

                2.1.2   Benefits

                Benefits include benefits strategy development, benefits plan
                design and administration, and communication of benefit programs
                to Unisys employees. The function determines the appropriate
                competitive level and mix of benefits for Unisys, including
                health and welfare plans, defined contribution plans, and
                defined benefit plans.

                [***]*

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

*Confidential information has been omitted.

                                       1

<PAGE>   52

PROPRIETARY AND CONFIDENTIAL                                        UNISYS/EXULT
--------------------------------------------------------------------------------

                2.1.3   Payroll

                Payroll processes include the collection of time and attendance
                data, management of employee earning and deductions, calculation
                of gross and net pay, processing employee payments, and
                responding to and resolving employee payroll issues and
                inquiries. Additionally, the payroll function will compute and
                file payroll related taxes, manage mandated deductions and
                perform the accounting transactions necessary to accumulate
                labor expenses at the detailed level including all general
                ledger interfaces.

                [***]*

        2.2     EMPLOYEE DATA MANAGEMENT

                2.2.1   Employee Data and Records Management

                Employee Data and Records Management responsibilities include
                all activities necessary to capture, track, modify and report
                employee related electronic and physical data. Employee data
                includes data on active employees, inactive employees such as
                terminated, term vested, deceased, and annuitants, and
                appropriate non-employee populations.

                [***]*

                2.2.2   HR Information Technology and Information Services
                        ("HRIT")

                "Unisys IT Domain" shall mean the data processing
                infrastructure, servers, data communications equipment, local
                area networks, desktop equipment and support, common office
                environment, and wide area network facilities (including the
                link between the Exult IT Domain and the Unisys IT Domain)
                operated and maintained by Unisys and/or operated and maintained
                by third parties under Third Party Contracts managed by Unisys.
                Unisys IT Domain includes the provision of data processing
                infrastructure, servers, data communications equipment, local
                area networks, desktop equipment and support, common office
                environment, and wide area network facilities for the support of
                Unisys HR applications.

                [***]*

        2.3     WORKFORCE PLANNING

                2.3.1   Resourcing/Recruiting/Staffing

                Recruiting/Resourcing/Staffing involves development of the
                Resourcing and Workforce Planning strategies, developing
                candidate pools, assessing and selecting candidates, and
                managing the administration of the staffing process. Vendor
                administration, logistics and assessment of resourcing
                strategies are also included.

                [***]*

                2.3.2   Expatriate Relocation and Administration

                Expatriate relocation and administration establishes expatriate
                policies, manages the

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

*Confidential information has been omitted.

                                       2
<PAGE>   53

                special needs of the expatriate population, and administers the
                expatriate relocation programs. Other responsibilities include
                tax activities, spouse and dependent programs, relocation
                assistance, and salary equalization. Repatriation of employees
                is also in the scope of this function.

                [***]*

                2.3.3   Domestic Relocation Administration

                Domestic relocation administration oversees the work involved in
                moving employees from one geographical location to another.
                Policy development, cost tracking, employee education and
                communication, third party administration and issue resolution
                all reside in this area.

                [***]*

                2.3.4   Severance

                Severance responsibilities include development of successful
                programs/policies to transition employees from Unisys, policy
                definition, program development, impact modeling and program
                administration, selection of third party vendors for
                outplacement, and managing the cost of severance programs.

                [***]*

        2.4     ORGANIZATION AND PEOPLE DEVELOPMENT

                2.4.1   Organization Development

                Organization Development is a set of strategies and techniques
                aimed at improving organizational effectiveness and performance.
                The emphasis is on solving both immediate organizational work
                issues and on long term development of an effective
                organization.

                [***]*

                2.4.2   Performance Management

                Performance Management develops models to establish performance
                goals for the organization and the tools needed to assess
                employee/group performance against these goals. Management of
                the performance feedback process and reporting on the process
                outcomes are also responsibilities.

                [***]*

                2.4.3   Training

                Training encompasses establishing training strategies, training
                needs assessments, course/materials development, administration
                and logistics coordination, delivery of training, and training
                effectiveness assessments.

                [***]*

                2.4.4   Employee Development

                Employee Development identifies employee development needs and
                ensures that these development needs are planned with the
                employee and the supervisor. Employee Development program
                design, competency modeling, managing the execution of
                development, tracking employee development plans, and succession
                planning are all included.

                [***]*

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

*Confidential information has been omitted.

                                       3
<PAGE>   54

PROPRIETARY AND CONFIDENTIAL                                        UNISYS/EXULT
--------------------------------------------------------------------------------

                2.4.5   Policy and Legal Compliance

                Policy and Legal Compliance is the management of Unisys legal
                requirements and internal business policies across all HR
                processes.

                [***]*

        2.5     WORKFORCE SERVICES

                2.5.1   HR Strategy

                HR Strategy develops the long-term HR strategy for Unisys and
                ensures the linkages to organizational goals and business
                objectives. In addition, HR Strategy directs the development of
                the HR function and maintains ties to best practice research
                which will introduce new HR concepts into Unisys

                [***]*

                2.5.2   Labor Relations

                Labor Relations promotes/maintains effective relationships
                between Unisys and its employees. Relationship management with
                any Unisys unions, collective bargaining units and all Unisys
                employees includes negotiations, problem/issue management, and
                interfacing with regulatory entities on behalf of Unisys

                [***]*

                2.5.3   Employee Relations

                Employee Relations involves efforts at promoting and maintaining
                effective relationships between the company and its employees.
                It involves activities needed to keep a productive and committed
                workforce in place.

                [***]*

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

*Confidential information has been omitted.

                                       4

<PAGE>   55

PROPRIETARY AND CONFIDENTIAL                                        UNISYS/EXULT
--------------------------------------------------------------------------------

                        UNITED STATES SERVICES AGREEMENT

                                   SCHEDULE B

                                 SERVICE LEVELS

--------------------------------------------------------------------------------
US Sch. B                                                                  Exult
Final

<PAGE>   56

PROPRIETARY AND CONFIDENTIAL                                        UNISYS/EXULT
--------------------------------------------------------------------------------

                                TABLE OF CONTENTS

<TABLE>
<S>                                                                                    <C>
1           INTRODUCTION................................................................1

2           PRINCIPLES GOVERNING SERVICE LEVELS.........................................1

3           PROCESS.....................................................................1

4           SERVICE CREDITS.............................................................3
</TABLE>

                                       i

<PAGE>   57

PROPRIETARY AND CONFIDENTIAL                                        UNISYS/EXULT
--------------------------------------------------------------------------------

                                   SCHEDULE B

                                 SERVICE LEVELS

1       INTRODUCTION

        This Schedule defines the principles and parameters governing the
        Service Levels which shall be measured. This Schedule also describes how
        these Service Levels shall be established.

        There are two types of Service Levels that shall be defined, measured
        and reported:

        1.1     Key Performance Indicators ("KPIs"): Service Levels that must be
                met to avoid a significant financial or service impact to
                Unisys; and

        1.2     Reporting Service Levels ("RSLs"): These measure Exult's
                performance of the Services using a range of quantitative and
                qualitative Service Levels.

        The process for initially establishing these Service is described in
        Section 3, Process.

2       PRINCIPLES GOVERNING SERVICE LEVELS

        2.1     Service Levels shall be used to measure Exult's performance of
                the Services set out in Schedule A of the Service Agreement.

        2.2     Service Levels shall be based on objective and clearly defined
                measurable criteria.

        2.3     A limited number of Service Levels shall be designated as KPIs
                as mutually agreed by the Parties.

        2.4     Service Levels are designed to measure quality and cost issues
                that are clearly identifiable by Unisys business users.

        2.5     Exult's performance of the Services at the Service Levels is
                subject to Unisys performing its obligations and
                responsibilities under this Agreement.

3       PROCESS

        Prior to the Service Agreement Effective Date, the parties have agree on
        the Service Level measurements identified below. Service Level metrics
        and process weightings shall be determined following the Service
        Agreement Effective Date in accordance with the process identified
        below.

        3.1     KPIs

                3.1.1   [***]*

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

*Confidential information has been omitted.

                                       1
<PAGE>   58

                3.1.2   With respect to the remaining KPIs, the parties shall
                        agree on provisional KPI metrics and process weightings
                        following the Service Agreement Effective Date. Then
                        Exult shall measure and report its performance of the
                        Services in accordance with such provisional KPIs for a
                        period of [***]*, following the Service Agreement
                        Effective Date. Thereafter, the parties shall agree on
                        revised KPI metrics and Exult shall implement such
                        Service Levels.

                3.1.3   KPI Process Weightings

                        Each KPI Service Level shall be assigned a weighting, by
                        Unisys, of no less than [***]* and no greater than
                        [***]*. The total KPI process weighting for all KPI
                        Service Levels shall equal [***]*

                3.1.4   Key Performance Indicator Table

                        [***]*

                        Exult shall have no liability for a failure to achieve a
                        KPI that is not achieved due to any of the causes set
                        forth in Section 6.05 of the Master Agreement and
                        non-performance of or any other defect in any systems,
                        hardware or other technical infrastructure, other than
                        those systems, hardware or other technical
                        infrastructure supplied or controlled by Exult under
                        this Agreement.

        3.2     RSLs

                Unisys and Exult shall determine and agree on a limited number
                of meaningful RSLs to measure key aspects of the Services
                (initial RSLs are stated below). The RSLs should wherever
                practicable be based on:

                -       information that is actually reported on as of the
                        Service Agreement Effective Date; or

                -       information which can be generated from the normal
                        operation of the service delivery model and systems
                        without the need for extra development or modification
                        to the systems or Exult service delivery model.

                3.2.1   For RSL's, where Unisys provides verifiable Service
                        Level history for the twelve month period prior to the
                        Service Agreement Effective Date, the parties shall
                        determine the appropriate Service Level metric for each
                        such RSL. These Service Level metrics shall be
                        implemented following Transition

                3.2.2   With respect to the remaining RSLs, the parties shall
                        agree on provisional RSL metrics following the Service
                        Agreement Effective Date. Exult shall measure and report
                        its performance of the Services in accordance with such
                        provisional RSLs for a period of 12 months, following
                        the Service Agreement Effective Date. Thereafter, the
                        parties shall agree on revised RSL metrics and Exult
                        shall implement such Service Level.

                3.2.3   Reporting Service Level Table

                [***]*

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

*Confidential information has been omitted.

                                       2
<PAGE>   59

PROPRIETARY AND CONFIDENTIAL                                        UNISYS/EXULT
--------------------------------------------------------------------------------

                Any requests for additional RSLs shall be subject to Change
                Control Management and the parties recognize that an appropriate
                equitable adjustment to the Fees may be necessary to implement
                such RSLs. Agreed changes to RSLs will be implemented at Unisys
                expense.

        3.3     ANNUAL SERVICE LEVELS REVIEW

                The Steering Committee (1) shall review the Service Levels
                annually, (2) with respect to any Service Levels that require
                periodic adjustment pursuant to this Master Agreement or any
                Service Agreement or are no longer appropriate because of an
                increase, decrease or change to the Services, shall adjust the
                Service Levels and (3) with respect to all other Service Levels,
                may adjust the Service Levels for the subsequent contract year.
                In addition, either Party may, at any time upon notice to the
                other Party, initiate negotiations to review and, upon agreement
                by the Steering Committee, adjust any Service Level which such
                Party in good faith believes is inappropriate at the time. The
                Parties intend to adjust Service Levels upward by mutual
                agreement as performance improves, when Service Levels are
                consistently exceeded.

        3.4     CONTINUOUS IMPROVEMENT AND BEST PRACTICES

                [***]*

4       SERVICE CREDITS

        4.1     KPIs, for which Unisys provides [***]* of Service Level history,
                shall be subject to Service Credits, following Transition, as
                set out in Schedule C.

        4.2     Provisional KPIs, provisional RSLs and RSLs shall not be subject
                to Service Credits.

        4.3     A failure by Exult to meet the KPIs set out in Schedule B shall
                entitle Unisys to recover as its sole financial remedy for such
                failure, Service Credits as set out in Schedule C, Fees and
                Invoicing

        4.4     Failure by Exult to meet the KPIs resulting from a single event
                shall constitute a single failure by Exult to meet the KPIs. If
                a single event causes multiple failures to meet the KPIs,
                Exult's liability shall be limited to the largest Service Credit
                payable for a single failure by Exult to meet the KPIs (larger
                of the two credits).

        4.5     Service Credits for missed KPIs shall be calculated on a monthly
                basis and credited semi-annually.

        4.6     Exult shall be allowed [***]* KPI within each [***]*
                reconciliation period.

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

*Confidential information has been omitted.

                                       3
<PAGE>   60

PROPRIETARY AND CONFIDENTIAL                                        UNISYS/EXULT
--------------------------------------------------------------------------------

                        UNITED STATES SERVICES AGREEMENT

                                   SCHEDULE C

                               FEES AND INVOICING

--------------------------------------------------------------------------------
US Sch. C                                                                  Exult
Final

<PAGE>   61

PROPRIETARY AND CONFIDENTIAL                                        UNISYS/EXULT
--------------------------------------------------------------------------------

                                TABLE OF CONTENTS

<TABLE>
<S>                                                                                                   <C>
1.     INTRODUCTION....................................................................................1

2.     DEFINITIONS.....................................................................................1

3.     UNISYS BASELINE SPEND VERIFICATION..............................................................2

4.     CHARGING METHODOLOGY............................................................................2

       4.1       BASE CHARGES..........................................................................2
       4.2       ARCS/RRCS.............................................................................3
       4.3       SERVICE CREDITS.......................................................................4

5.     ADDITIONAL SERVICES.............................................................................5

6.     PASS THROUGH EXPENSES AND OTHER CHARGES.........................................................5

       6.1       PASS THROUGH EXPENSES.................................................................5
       6.2       OUT-OF-POCKET EXPENSES................................................................5

7.     INVOICING.......................................................................................5

8.     TERMINATION.....................................................................................6

       8.1       TERMINATION FOR CONVENIENCE...........................................................6
       8.2       TERMINATION FOR CAUSE.................................................................6

9.     INFLATION.......................................................................................6

10.    CONTRACT MINIMUMS...............................................................................7

11.    HRIT CHARGES....................................................................................7

       11.1      HRIT CHARGES..........................................................................7

12.    ASSUMPTIONS.....................................................................................8
</TABLE>

                                      -i-

<PAGE>   62

PROPRIETARY AND CONFIDENTIAL                                        UNISYS/EXULT
--------------------------------------------------------------------------------

1.      INTRODUCTION

This Schedule describes the methodology for determining the charges to be paid
by Unisys to Exult for the performance by Exult of its obligations under this
Agreement as well as the associated processes for invoicing Unisys for such
charges.

2.      DEFINITIONS

Any capitalized terms that are not defined in this Schedule shall have the
meanings assigned to them in the Master Agreement. The following terms shall
have the meanings set out below:

"Additional Resource Charge" (ARC) means the incremental charges payable by
Unisys in addition to the Base Charges when usage of relevant resources exceeds
the upper limit for Baseline Volumes.

"Additional Services Charges", as outlined in Section 5 of this Schedule, shall
mean Exult's charges for the provision of services other than described in
Schedule A.

"Base Charge" means the basic amount payable monthly, consisting of [***]* plus
[***]* determined as of the Master Agreement Effective Date (subject to
adjustment by verification), divided by twelve.

"Baseline Volume" means the expected volume of service delivered to Unisys, as
of the Master Agreement Effective Date, measured by the metrics in Table 4.2.2.1
of this Schedule C.

"Compensation Plans" means employee compensation plans including, without
limitation, base pay plans, short term incentive plans, long term incentive
plans, (including stock option plans, and deferred compensation plans) and other
plans administered by Exult.

"Formal Training" means learning events which are instructor led or computer
based in which registration is required.

"Full-Time Equivalent" (FTE) means 1,800 hours per work year.

"HR Labor Costs" means [***]* all as disclosed in the database extract report
provided to Exult on June 15, 2000.

"HR Other Costs" means [***]* as disclosed in Table 6.1.1 ("Non-Labor Related
Other Costs").

"HRIT" means the Information Technology and Information Services specified in
Section 2.2.2 of Schedule A of this Agreement.

"HRIT Full-Time Equivalent" ("HRIT FTE") means 1,780 hours per work year.

"Minimum Payment" means the minimum annual payments described by Section 10 of
this Schedule C.

"Minor Enhancement" means application changes with an estimated effort of 30
Person-Days or less.

"Person-Day" means 8.0 working hours.

"Qualified Applicants" mean potential employees seeking employment with Unisys
who (i) purportedly possess minimum qualifications and (ii) are tracked for
purposes of compliance with equal employment opportunity and affirmative action
regulations.

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

*Confidential information has been omitted.

                                      -1-
<PAGE>   63

PROPRIETARY AND CONFIDENTIAL                                        UNISYS/EXULT
--------------------------------------------------------------------------------

"Reduced Resource Charge" (RRC) means the incremental credits to Unisys that
apply when usage of relevant resources is less than agreed lower limits for
Baseline Volumes.

"Resource Unit" shall mean the unit of measurement for each Process as specified
in Table 4.2.2.1.

"Service Credit" shall mean an amount to be credited to Unisys in the event of
an unexcused failure by Exult to achieve a KPI as specified in Schedule B.

"Serviced Employee" means any Unisys employee (or, where appropriate, retiree or
temporary employee) supported by Exult or eligible to receive Services from
Exult, measured monthly on the last business day of the month from the
applicable employee database.

"Severed Employee" means employees who leave Unisys employ for any reason

"Unisys Baseline Spend" means [***]* all as disclosed in the June personnel
database extract and budgets provided to Exult and identified in Table 4.1.1.1,
Table 4.1.2.1, and Table 6.1.1.

3.      UNISYS BASELINE SPEND VERIFICATION

During the [***]* period following the Master Agreement Effective Date, the
parties shall verify Unisys Baseline Spend, including all categories of HR costs
defined above ("HR Costs"). This shall include (i) having each individual
providing HR services as of the Master Agreement Effective Date provide their
time activity across the list of services within Schedule A using Exult provided
software and (ii) interviewing or otherwise questioning knowledgeable members of
Unisys HR staff concerning Unisys operations and responsibilities.
Determinations shall be based upon numbers of FTE's engaged in performance of
services comparable to the Services. Unisys shall not provide the Schedule A
activities (except with respect to the individuals involved in the consummation
of this Agreement) prior to the individuals completing the activity allocation
in order to provide an unbiased representation. Upon completion of verification,
this Schedule C will be amended to adjust Unisys Baseline Spend, HR Costs, and
Termination for Convenience Charges, as appropriate (and other Schedules may be
amended by mutual agreement in accordance with Section 12.04 of the Master
Agreement). Any disputes between the parties concerning verification shall be
resolved in accordance with Article 17 of the Master Agreement. Adjustments
determined from verification shall be retroactive to the Master Agreement
Effective Date.

4.      CHARGING METHODOLOGY

4.1     BASE CHARGES

Exult's monthly Base Charge equals:

        -       [***]*

        -       Divided by 12.

[***]*

Initial Base Charges are based upon the annual Labor Costs in Table 4.1.1.1, and
Table 4.1.2.1 pending Unisys Baseline Spend verification. No discounts apply
during the [***]* HR Labor Costs and Labor-Related Other Costs are subject to
adjustment through verification as provided above.

        4.1.1   Allocation of Fixed Base Charge Among Processes

        Fixed Base charges are allocated among Processes as follows:

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

*Confidential information has been omitted.

                                      -2-
<PAGE>   64
PROPRIETARY AND CONFIDENTIAL                                        UNISYS/EXULT
--------------------------------------------------------------------------------

                  TOTAL HR LABOR COSTS AND FIXED BASE CHARGES

                                  TABLE 4.1.1.1

        [***]*

        4.1.2   Labor Related Other Charges

        Labor Related Other Charges are shown in Table 4.1.2.2.

                            LABOR RELATED OTHER COSTS

                                  TABLE 4.1.2.1

        [***]*

                            FTE SUPPORT BASED CHARGES

                                  TABLE 4.1.2.2

        [***]*

        4.1.3   Base Charges During Transition

        During the Transition Period, Unisys will pay Base Charges
        proportionally, as of the relevant Process Take On Dates. When
        transition occurs between the beginning and end of the month, Base
        Charges shall be prorated by taking a percentage (based on the number of
        days remaining for such month divided by the total days in such month)
        of a full month's charge for that Process. For example, if the Master
        Agreement Effective Date is September 1, 2000 and the Process Take On
        Date for Compensation is March 15, 2001, Unisys shall pay 48% (15 days
        remaining divided by 31 days in March) of the Base Charges for the month
        of March and the entire Base Charges for April 2001.

4.2     ARCS/RRCS

        4.2.1   Resource Units

        The Resource Units identified in Table 4.2.2.1 provide a representative
        measurement of usage for the Services. HR Services ARC and RRC
        adjustments to Base Charges will be based on such Resource Units.
        Examples of using resource units for ARC and RRC adjustments can be
        found in Table 4.2.5

        4.2.2   Baseline Volumes

        The Baseline Volume for each Resource Unit specified in Table 4.2.2.1
        shows the semi-annual volume. Average figures are based upon monthly
        totals, measured on the 30th or last business day of the month, then
        averaged for the relevant annual or semi-annual period. This average
        figure is known as the semi-annual volume number. These volumes are
        based on those provided by the Unisys prior to the Master Agreement
        Effective Date and are subject to verification provided above. [***]*

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

*Confidential information has been omitted.

                                       -3-
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PROPRIETARY AND CONFIDENTIAL                                        UNISYS/EXULT
--------------------------------------------------------------------------------

                     ARC/RRC UNIT RATES AND BASELINE VOLUMES

                                  TABLE 4.2.2.1

        [***]*

        4.2.3   Calculation of ARCs and RRCs

        A financial adjustment to the fees will occur if the semi-annual volume
        number exceeds the lower or upper limits of the resource units
        identified in Table 4.2.2.1.

                [***]*

        An ARC will be paid when the actual usage of a Resource Unit for the
        period measured exceeds the upper limit for such Resource Unit. [***]*

        An RRC will be credited when the actual usage of a Resource Unit for the
        period measured is less than the lower limit for such Resource Unit.
        [***]*

        4.2.4   Periodic Reconciliation and Payment

        First Contract Year

        For the first Contract Year, Exult will calculate ARCs and RRCs on an
        annual basis, using annualized Baseline Volumes, within forty-five (45)
        days after the end of the first Contract Year. Exult will prepare a
        detailed supplementary invoice for the net amount to be paid by or
        credited to Unisys, including calculations of all ARCs and RRCs, which
        shall be paid by Unisys within [***]*

        Later Contract Years

        In subsequent Contract Years, Exult will calculate ARCs and RRCs
        semi-annually, within forty-five (45) days after the end of the sixth
        and twelfth months of the Contract Year. Exult will prepare a detailed
        supplementary invoice for the net amount to be paid by or credited to
        Unisys, including calculations of all ARCs and RRCs, which shall be paid
        by Unisys within [***]* If, following the final Contract Year, a net
        credit is owed to Unisys, it shall be paid in cash or deducted from any
        other amounts owed by Unisys.

                          ARC/RRC ADJUSTMENTS EXAMPLES

                                   TABLE 4.2.5

[***]*

4.3     SERVICE CREDITS

In the event of an unexcused failure to meet a Key Performance Indicator
specified in Schedule B, Exult shall be liable for Service Credits as follows:

        -       Service Credits will be reported and calculated [***]*

        -       The Amount at Risk shall be [***]*

        -       For example, [***]*

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

*Confidential information has been omitted.

                                      -4-
<PAGE>   66

PROPRIETARY AND CONFIDENTIAL                                        UNISYS/EXULT
--------------------------------------------------------------------------------

Subject to Schedule B, Section 4.6, the total amount payable for all unexcused
failures to KPI shall in no event exceed the Amount at Risk.

All failures attributable to a single failure of a device, component, or process
shall be considered a single failure. If a single failure or incident causes
unexcused failures to meet two or more KPIs, Exult shall be liable for the
largest single Service Credit.

No Service Credits shall be payable until after completion of the Transition
Period.

Exult shall be allowed [***]* If any KPIs are missed within a semi-annual
period, [***]*

The parties understand and intend that credits are liquidated damages, and agree
that the amounts are reasonable in the circumstances existing on the date of
this Agreement.

5.      ADDITIONAL SERVICES

Additional Services and project work consist of those Services requested by
Unisys that are not included in Schedule A and will be administered through
Change Control Management as specified in Schedule K.

6.      PASS THROUGH EXPENSES AND OTHER CHARGES

6.1     PASS THROUGH EXPENSES

Exult will review and pay third party invoices for Non-Labor Related Other
Costs. Unisys will reimburse those costs. Within forty-five (45) days after the
end of each Contract Year, Exult will compare those payments with Non-Labor
Related Other Costs in original Unisys Baseline Spend (as adjusted through
verification, as provided above), and to the extent that they are lower, invoice
Unisys [***]* Non-Labor-Related Other Costs identified as of the Master
Agreement Effective Date are listed in Table 6.1.1, which may be amended through
the verification process in Section 3 or as agreed from time to time.

                          NON LABOR RELATED OTHER COSTS

                                   TABLE 6.1.1

[***]*

6.2     OUT-OF-POCKET EXPENSES

Unisys will reimburse Exult, in accordance with Unisys travel policies as
disclosed from time to time, for reasonable out-of-pocket expenses incurred as
part of Additional Services or other Unisys requests. These out-of-pocket are:

        (i)     Travel expenses pre-approved by Unisys.

        (ii)    Any other expenses pre-approved by Unisys.

Exult will maintain records of out-of-pocket expenses in accordance with good
business practice, and make those records available to Unisys upon request in
order to verify expenses.

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

*Confidential information has been omitted.

                                      -5-
<PAGE>   67

PROPRIETARY AND CONFIDENTIAL                                        UNISYS/EXULT
--------------------------------------------------------------------------------

7.      INVOICING

Invoices for Base Charges, HR-ASM Charges and for those Additional Service
Charges for Additional Services provided on an ongoing basis will be submitted
by Exult [***]*

Additional Service Charges for other Additional Services, ARCs and RRCs payment
adjustments, and pass through expenses and other charges will be invoiced by
Exult in arrears on the first day of the subsequent calendar month and shall be
due upon invoice receipt.

Payment shall be due from Unisys in accordance with Section 12.01 of the Master
Agreement. All payments shall be in US dollars.

Service Credits shall be calculated in accordance with Section 3.3 of this
Schedule C. and credited semi-annually against the next succeeding invoice (or
at expiration of the contract, paid in cash or credited against amounts
otherwise due from Unisys).

Base Charges, ARCs, RRCs and Termination Charges are subject to equitable
adjustment in accordance with Section 12.06 of the Master Agreement.

If periodic computation and reconciliation of ARCs and RRCs, or an equitable
adjustment under Section 12.06 of the Master Agreement yield net [***]* for
reasons other than unique or non-recurring events, then, in order to minimize
the net payment or credit following periodic reconciliation, subsequent monthly
invoices for Base Charges shall be adjusted up or down, as appropriate, by an
amount equal to the net adjustment for the immediately preceding period.

Exult's invoices will include reasonably detailed computations of all charges,
and a detailed breakdown of all pass-through and other reimbursable costs. Upon
request, Exult will provide reasonable backup documentation for all reimbursable
costs (such as copies of third party invoices).

8.      TERMINATION

8.1     TERMINATION FOR CONVENIENCE

As described in Section 18.02(2) of the Master Agreement, in the event of a
Termination for Convenience, Unisys will pay Exult the following:

                           TERMINATION FOR CONVENIENCE

                                    TABLE 7.1

        [***]*

        The amount shall be for the full amount of the month within which the
        termination occurs.

8.2     TERMINATION FOR CAUSE

As described in Section 18.02(1) of the Master Agreement, in the event of a
Termination for Cause [***]*

9.      INFLATION

At the beginning of each Contract Year, Base Charges, HR-ASM Management Charges,
ARCs and RRCs shall be adjusted by an amount equal to [***]*

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

*Confidential information has been omitted.

                                       -6-
<PAGE>   68

PROPRIETARY AND CONFIDENTIAL                                        UNISYS/EXULT
--------------------------------------------------------------------------------

10.     CONTRACT MINIMUMS

If total payments of Base Charges in any Contract Year (including any net
increase or credit related to ARCs or RRCs, but excluding any allowance for
Service Credits) are less than [***]* Exult shall deliver to Unisys an invoice
for the shortfall, which Unisys shall pay as part of the subsequent regular
monthly invoice, or at the time of termination or expiration, within [***]*
after receiving Exult's invoice.

11.     HRIT CHARGES

Prior to the Master Agreement Effective Date, Unisys HR received IT applications
development and support services from HRIT (Corporate IT) and HRET (HR Client
Services). With the transition to this HR Services Agreement, Unisys HR will
retain the responsibility and staff to perform HR business analysis. Exult will
perform HRIT Management directly and will subcontract to Unisys for expertise
and skilled IT resources for the provision of the other responsibility areas.
HRIT services consist of four main responsibility areas:

        1.      HRIT Management;

        2.      HR-ASM;

        3.      Reporting; and

        4.      HRIT Projects.

11.1    HRIT CHARGES

Exult charges for the delivery of HRIT services are shown in Table 11.1.1 below.
These charges shall commence following the transition to HRIT services to be
completed [***]* after the Master Agreement Effective Date.

During the [***]* following the Master Agreement Effective Date, the parties
shall verify actual HRIT staff related costs. [***]* Upon completion of
verification, this Schedule C will be amended to adjust Exult HRIT charges for
HR-ASM, Reporting and Projects, as appropriate. Any disputes between the parties
concerning verification shall be resolved in accordance with Article 17 of the
Master Agreement. Adjustments determined from verification shall be retroactive
to the Master Agreement Effective Date.

HRIT charges shall be adjusted at the end of each Contract Year for inflation as
specified in Section 7 of this Schedule C. Any change to the HRIT charges will
be pre-approved by Unisys and Exult in accordance with the Change Control
Management process.

                           HRIT CHARGES AND RESOURCES

                                  TABLE 11.1.1

        [***]*

        11.1.1  HRIT Management Charges

        Exult will invoice Unisys monthly a fixed charge as specified in Table
        11.1.1.

        11.1.2  HR-ASM Charges

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

*Confidential information has been omitted.

                                      -7-
<PAGE>   69

PROPRIETARY AND CONFIDENTIAL                                        UNISYS/EXULT
--------------------------------------------------------------------------------

        Exult will invoice Unisys monthly for the agreed charges for the
        provision of HR-ASM services to Unisys. Table 11.1.1 identifies [***]*
        Any change to the number of HR-ASM FTEs and/or charges will be
        pre-approved by Unisys and Exult through the Change Control Management
        process.

        11.1.3  Reporting Charges

        Exult will invoice Unisys monthly for the agreed charges incurred in the
        provision of Reporting services to Unisys. Table 11.1.1 identifies
        [***]* Any change to the number of reporting FTEs and/or charges will be
        pre-approved by Unisys and Exult through the Change Control Management
        process.

        11.1.4  HRIT Projects Charges

        Project resources and charges must be pre-approved for each project
        through the Change Control Management process defined in Schedule K.
        Exult will invoice Unisys monthly for the agreed charges for the
        provision of the HRIT Projects to Unisys. Table 11.1.1 identifies [***]*
        Any change to the number of HRIT Projects FTEs and/or charges will be
        pre-approved by Unisys and Exult through the Change Control Management
        process.

        11.1.5  HRIT Alternate Fee Structure

        The HRIT fee structure implemented in this Agreement is based on [***]*
        The fee structure specified in Table 11.1.1 will remain in place for
        nine months from the Master Agreement Effective Date at which time the
        parties will agree on a revised fee structure based on [***]* Any change
        to this fee structure shall be agreed through the Change Control
        Management process.

12.     ASSUMPTIONS

The assumptions listed below have been used in preparing this schedule.

        -       Current and future document storage charges are the
                responsibility of the party with whom the documents reside. All
                document storage charges for records prior to the Master
                Agreement Effective Date shall be the Unisys responsibility.

        -       Exult will operate under the Unisys PeopleSoft license.

        -       Postage and shipping costs from the Client Service Center will
                be the responsibility of Unisys.

        -       Severance and retention bonuses shall be Unisys responsibility

In the event of any deviation from the above listed assumptions, charges will be
equitably adjusted to reflect the net change in the cost of performing the
relevant Services in accordance with Section 12.06 of the Master Agreement and
Change Control Management procedures as defined in Schedule K.

--------------------
*Confidential information has been omitted.

                                      -8-
<PAGE>   70

PROPRIETARY AND CONFIDENTIAL                                        UNISYS/EXULT
--------------------------------------------------------------------------------

                        UNITED STATES SERVICES AGREEMENT

                                   SCHEDULE D

                             APPROVED SUBCONTRACTORS

--------------------------------------------------------------------------------
US Sch. D                                                                  Exult
Final

<PAGE>   71

PROPRIETARY AND CONFIDENTIAL                                        UNISYS/EXULT
--------------------------------------------------------------------------------

                                TABLE OF CONTENTS

<TABLE>
<S>                                                                                <C>
A.     APPROVED EXULT SUBCONTRACTORS................................................1

B.     CURRENT UNISYS SUBCONTRACTORS................................................1
</TABLE>

                                       i

<PAGE>   72

PROPRIETARY AND CONFIDENTIAL                                        UNISYS/EXULT
--------------------------------------------------------------------------------

                                   SCHEDULE D

                             APPROVED SUBCONTRACTORS

This schedule sets forth the approved Exult subcontractors and the current
Unisys subcontractors that Exult may use to provide the Services as described in
Schedule A, Description of Services.

A.     APPROVED EXULT SUBCONTRACTORS

       [***]*

B.     CURRENT UNISYS SUBCONTRACTORS

       [***]*

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

*Confidential information has been omitted.

                                       1
<PAGE>   73
PROPRIETARY AND CONFIDENTIAL                                        UNISYS/EXULT
--------------------------------------------------------------------------------

                        UNITED STATES SERVICES AGREEMENT

                                   SCHEDULE E

                          DESIGNATED UNISYS COMPETITORS

--------------------------------------------------------------------------------
US Sch. E                                                                  Exult
Final

<PAGE>   74

PROPRIETARY AND CONFIDENTIAL                                        UNISYS/EXULT
--------------------------------------------------------------------------------

                                   SCHEDULE E

                          DESIGNATED UNISYS COMPETITORS

This schedule sets forth the designated Unisys competitors pursuant to Section
18.02(11) of the Master Agreement.

[***]*

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

*Confidential information has been omitted.

                                       1

<PAGE>   75

PROPRIETARY AND CONFIDENTIAL                                        UNISYS/EXULT
--------------------------------------------------------------------------------

                        UNITED STATES SERVICES AGREEMENT

                                   SCHEDULE F

                    GLOBAL DUE DILIGENCE/TRANSITION PLANNING

--------------------------------------------------------------------------------
US Sch. F                                                                  Exult
Final

<PAGE>   76

PROPRIETARY AND CONFIDENTIAL                                        UNISYS/EXULT
--------------------------------------------------------------------------------

                                TABLE OF CONTENTS

<TABLE>
<S>                                                                                         <C>
1       INTRODUCTION.........................................................................1

2       PRINCIPLES FOR DETERMINING GLOBAL DUE DILIGENCE EXERCISE AND COUNTRY TRANSITION
        PLANNING ACTIVITIES..................................................................1

3       DUE DILIGENCE EXERCISE...............................................................1

4       DUE DILIGENCE EXERCISE COSTS.........................................................1
</TABLE>

                                       i

<PAGE>   77

PROPRIETARY AND CONFIDENTIAL                                        UNISYS/EXULT
--------------------------------------------------------------------------------

                                   SCHEDULE F

                    GLOBAL DUE DILIGENCE/TRANSITION PLANNING

1      INTRODUCTION

       This Schedule addresses the following issues:

       1.1    Due diligence exercise overview -- The general concept behind the
              due diligence exercise.

       1.2    Due Diligence Exercise Approach -- The guideline is for a [***]*
              due diligence exercise to be performed for each applicable
              country, concluding with signing of a Service Agreement for that
              country.

       1.3    Principles for determining global due diligence exercise and
              country transition planning activities -- The rational to
              determine the country sequencing and timing for inclusion into the
              Agreement.

       1.4    Global due diligence exercise schedule -- Schedule showing timing
              of the specific country due diligence exercise as agreed between
              both parties.

       1.5    Completion of post implementation review and incorporation of
              lessons learned.

2      PRINCIPLES FOR DETERMINING GLOBAL DUE DILIGENCE EXERCISE AND COUNTRY
       TRANSITION PLANNING ACTIVITIES

       2.1    The schedule for country due diligence and transition shall be
              primarily determined based on the size of the active and in-active
              employee base and applicable non-employee population and the
              country specific HR organization.

       2.2    Exult and Unisys shall assess a country's readiness for delivery,
              with particular attention given to a country's technology and
              application infrastructure, and economic viability.

3      DUE DILIGENCE EXERCISE

       The due diligence exercise will be conducted in a consistent manner for
       each country (or country group) and is comprised of the following key
       milestones:

       [***]*

4      DUE DILIGENCE EXERCISE COSTS

       In respect of countries other than the United States of America, Unisys
       will pay Exult for conducting the due diligence exercise under the Master
       Services Agreement as follows:

       [***]*

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

* Confidential information has been omitted.

                                       1
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PROPRIETARY AND CONFIDENTIAL                                        UNISYS/EXULT
--------------------------------------------------------------------------------

5      COUNTRY CANDIDATE LIST

       [***]*

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

* Confidential information has been omitted.

                                       2

<PAGE>   79

PROPRIETARY AND CONFIDENTIAL                                        UNISYS/EXULT
--------------------------------------------------------------------------------

                        UNITED STATES SERVICES AGREEMENT

                                   SCHEDULE G

                              TRANSITION PLAN (US)

--------------------------------------------------------------------------------
US Sch. G                                                                  Exult
Final

<PAGE>   80

PROPRIETARY AND CONFIDENTIAL                                        UNISYS/EXULT
--------------------------------------------------------------------------------

                                TABLE OF CONTENTS

<TABLE>
<S>                                                                                         <C>
1       INTRODUCTION.........................................................................1

2       TRANSITION PLANNING PRINCIPLES.......................................................1

3       CONTRACTING/HIGH LEVEL DUE DILIGENCE.................................................1

4       TRANSITION APPROACH..................................................................1

5       OVERALL TRANSITION ACTIVITIES........................................................2

6       PROJECT INITIATION...................................................................2

7       CLIENT REQUIREMENTS DEFINITION.......................................................2

8       PROCESS TRANSFER.....................................................................2

9       FIRST 120 DAYS PLAN TEMPLATE.........................................................2

10      SAMPLE US HIGH-LEVEL TRANSITION SCHEDULE.............................................2
</TABLE>

                                       i

<PAGE>   81
PROPRIETARY AND CONFIDENTIAL                                        UNISYS/EXULT
--------------------------------------------------------------------------------

                                   SCHEDULE G

                              TRANSITION PLAN (US)

1      INTRODUCTION

       This Schedule sets forth the Transition approach and high-level plan for
       conducting the current situation assessment, the work activity mapping
       (for baseline validation), the baseline validation, the requirements
       mapping, the endorsement process (for policy changes), the gap analysis,
       and the plan for the transfer (including process build) of the Services
       from Unisys to Exult and the transition approach that shall be followed.
       The specific deliverables and milestones for the transition approach
       shall be agreed within [***]*

2      TRANSITION PLANNING PRINCIPLES

       2.1    Transition is a joint responsibility. Exult is responsible for
              management of the overall transition plan and Unisys has
              responsibility for ensuring the appropriate level of participation
              in data gathering and requirements definition and of commitment
              and involvement for their team.

       2.2    The schedule for transition shall be primarily determined based on
              the size of the active and in-active employee base and applicable
              non-employee population and the Country specific HR organization.

3      CONTRACTING/HIGH LEVEL DUE DILIGENCE

       A contracting/high level due diligence phase has been completed prior to
       the Master Agreement Effective Date, pertaining to HR, HR Services,
       Payroll and related HRET/HRIT, and l included:

       3.1    Master Agreement development, negotiation and signing

       3.2    Input for in-scope Processes (Schedule A) and other Schedules

       3.3    Volumetrics data collection

       3.4    Budget/financial data collection for HR and Payroll

       3.5    HRIT/HRET projects data collection

4      TRANSITION APPROACH

       The process transfer shall be divided into multiple components and
       delivered through a series of releases or "builds". The initial component
       is known as the project initiation phase and deals with the project
       infrastructure necessary to support the successful completion of the
       transition. This is the phase of the transition during which Unisys and
       Exult agree to the overall approach and schedule for the transition, the
       detailed work plan to complete the work, and the staffing levels and
       commitments from both organizations. The project reporting and governance
       shall also be agreed and put in place. The diagram shown below and
       described in the following sections represents the transition components.
       [***]*

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

* Confidential information has been omitted.

                                       1
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PROPRIETARY AND CONFIDENTIAL                                        UNISYS/EXULT
--------------------------------------------------------------------------------

5      OVERALL TRANSITION ACTIVITIES

       Overall transition activities are project wide and not specific to a
       Process. The activities are:

              [***]*

6      PROJECT INITIATION

       During this activity Exult and Unisys will undertake the initiation
       activities in preparation for the transition workstream. Project
       initiation includes items such as [***]*

7      CLIENT REQUIREMENTS DEFINITION

       During this phase Exult and Unisys will undertake activities to define
       the specifics Unisys requirements to be addressed. These requirements may
       result in changes in policy and operations and as such need to be planned
       into the process transfer workstream. All requirements require
       endorsement/approval by Unisys before they can be incorporated into the
       process transfer plan.

       [***]*

8      PROCESS TRANSFER

       The Process Transfer workstream is where the activities necessary to
       transfer the work from Unisys to Exult are performed. The plan for the
       process transfer phase will consist of the following activities.

       [***]*

9      FIRST [***]* PLAN TEMPLATE

This template represents the activities to be accomplished in the first [***]*
of the agreement.

       [***]*

10     SAMPLE US HIGH-LEVEL TRANSITION SCHEDULE

       10.1   Sample US High-level Gantt Chart

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

* Confidential information has been omitted.

                                       2

<PAGE>   83

PROPRIETARY AND CONFIDENTIAL                                        UNISYS/EXULT
--------------------------------------------------------------------------------

                        UNITED STATES SERVICES AGREEMENT

                                   SCHEDULE H

                                    PROJECTS

--------------------------------------------------------------------------------
US Sch. H                                                                  Exult
Final

<PAGE>   84

PROPRIETARY AND CONFIDENTIAL                                        UNISYS/EXULT
--------------------------------------------------------------------------------

                                TABLE OF CONTENTS

<TABLE>
<S>                                                                                         <C>
1       PROJECTS IDENTIFIED AS NEW SERVICES..................................................1

2       PROJECTS TO BE CONSIDERED FOR NEW SERVICES...........................................1

3       PROCESS FOR AGREEING NEW PROJECTS AND CHANGES TO AGREED PROJECTS.....................1

4       PROPOSED PROJECTS....................................................................2
</TABLE>

                                       i

<PAGE>   85

PROPRIETARY AND CONFIDENTIAL                                        UNISYS/EXULT
--------------------------------------------------------------------------------

                                   SCHEDULE H

                                    PROJECTS

1      PROJECTS IDENTIFIED AS NEW SERVICES

       As of the Master Agreement Effective Date, Exult and Unisys have
       identified the following projects as New Services:

       1.1    Implementation of Services for other countries in which Unisys is
              operating

              Anticipated to be included into the agreement [***]* with a
              Transition schedule to be agreed by the parties

       1.2    [***]*

              1.2.1  Project Overview

              It is anticipated that [***]* will be included into the Agreement
              [***]* Primary components shall include:

              1.2.2  Administration

              Provide a comprehensive solution based on a platform that provides
              information for [***]* This solution includes a standardized,
              consistent technology-enabled process, leveraged across the entire
              organization. The key components of the administration solution
              are [***]*

              1.2.3  Functions Beyond Administration

              Exult delivery includes [***]* and measurement. Exult will work
              with Unisys University to determine the delivery solutions based
              on specific needs.

2      PROJECTS TO BE CONSIDERED FOR NEW SERVICES

       As of the Master Agreement Effective Date, Exult has identified the
       following as projects to be considered for New Services:

       [***]*

3      PROCESS FOR AGREEING NEW PROJECTS AND CHANGES TO AGREED PROJECTS

       Unisys and Exult may at any time during the term of this Agreement
       propose that Exult undertake new Projects as New Services pursuant to the
       Change Control Management process. Any such requests will be made and
       evaluated in accordance with the Change Control Management process in
       Schedule K.

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

* Confidential information has been omitted.

                                       1
<PAGE>   86

PROPRIETARY AND CONFIDENTIAL                                        UNISYS/EXULT
--------------------------------------------------------------------------------

4      PROPOSED PROJECTS

4.1    The terms applicable to a Project shall be set out in a Project statement
       to be signed by both parties. Once signed a Project statement will form
       part of this Agreement, unless agreed otherwise in writing by the
       parties.

4.2    Content of Project statement

       -      Scope of work

       -      Service Level impact

       -      Impact analysis including priority

       -      Deliverables [as applicable]

       -      Acceptance criteria, timeframe & process [as applicable]

       -      Project timetable (including start and end dates, activity
              duration and critical dependencies

       -      Responsibilities

       -      Staffing (implementation and ongoing)

       -      Assumptions

       -      Charges and payment terms

       -      Project manager contacts

       -      Other terms and conditions, to detail variations and/or additions
              to the Master Agreement, relevant Service Agreements, and/or
              Schedules applicable in relation to the Project.

                                       2

<PAGE>   87

PROPRIETARY AND CONFIDENTIAL                                        UNISYS/EXULT
--------------------------------------------------------------------------------

                        UNITED STATES SERVICES AGREEMENT

                                   SCHEDULE I

                            LISTED UNISYS COMPETITORS

--------------------------------------------------------------------------------
US Sch. I                                                                  Exult
Final

<PAGE>   88

PROPRIETARY AND CONFIDENTIAL                                        UNISYS/EXULT
--------------------------------------------------------------------------------

                                   SCHEDULE I

                            LISTED UNISYS COMPETITORS

This schedule sets forth the list of Unisys competitors pursuant to Section 4.14
of the Master Agreement.

[***]*

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

* Confidential information has been omitted.

                                       1

<PAGE>   89

PROPRIETARY AND CONFIDENTIAL                                        UNISYS/EXULT
--------------------------------------------------------------------------------

                        UNITED STATES SERVICES AGREEMENT

                                   SCHEDULE J

                         EMPLOYEE TRANSFER ARRANGEMENTS

--------------------------------------------------------------------------------
US Sch. J                                                                  Exult
Final

<PAGE>   90

PROPRIETARY AND CONFIDENTIAL                                        UNISYS/EXULT
--------------------------------------------------------------------------------

                                TABLE OF CONTENTS

<TABLE>
<S>                                                                                         <C>
1       DEFINITIONS; RULES OF APPLICATION....................................................2

2       INDEMNITIES..........................................................................3

3       OFFER OF EMPLOYMENT..................................................................3

4       EMPLOYMENT PROVISIONS ON TERMINATION.................................................5
</TABLE>

                                       1

<PAGE>   91

PROPRIETARY AND CONFIDENTIAL                                        UNISYS/EXULT
--------------------------------------------------------------------------------

                                   SCHEDULE J

                         EMPLOYEE TRANSFER ARRANGEMENTS

1      DEFINITIONS; RULES OF APPLICATION

       In this Schedule:

       "AFFECTED EMPLOYEE" means any employee of Unisys, employed wholly or
       mainly in providing one or more of the Services immediately before the
       Effective Date.

       "APPROPRIATE AFFILIATE" means, in elation to an Affected Employee, the
       Unisys Affiliate which employs that employee immediately prior to the
       Effective Date

       "CURRENT EXULT EMPLOYEE" means an employee of Exult who is [***]*

       "EMPLOYEE OFFERED EMPLOYMENT" means an Affected Employee who is offered
       employment with Exult on or after the Master Agreement Effective Date.

       "EXULT EMPLOYMENT DATE" means the date of hire of a New Exult Employee.

       "NEW EXULT EMPLOYEE" means an Affected Employee who accepts employment
       with Exult pursuant to Section 4.1 of this Schedule on or after the date
       of the Master Agreement Effective Date.

       "REPRESENTED EMPLOYEE" means an Affected Employee who is represented by a
       labor organization under the terms of a written collective bargaining
       agreement with Unisys.

       "STAFF COSTS" means any and all compensation, benefit costs, damages,
       interest, legal costs, penalties, fines or other liabilities whatsoever,
       arising from any claim by one or more Affected Employees, the Internal
       Revenue Service and state and local taxing agencies with respect to or
       resulting from any employment contract, employment relationship or
       collective bargaining agreement or termination of such relationship with
       an Affected Employee.

       "TERMINATION DATE" means 23.59 local time on the date when this Agreement
       expires or terminates.

       TRANSFER DATE" means the date an Affected Employee becomes an Exult
       Employee in connection with the relevant Process Take On.

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

* Confidential information has been omitted.

                                       2
<PAGE>   92
PROPRIETARY AND CONFIDENTIAL                                        UNISYS/EXULT
--------------------------------------------------------------------------------

       In this Schedule, any reference to an obligation or duty of an
       Appropriate Affiliate shall be treated as an obligation by Unisys to
       undertake such obligation itself or cause the Appropriate Affiliate to do
       so.

2      INDEMNITIES

       2.1    Unisys will indemnify, defend, keep indemnified and reimburse
              Exult for any Staff Costs incurred by Exult (other than Staff
              Costs which result from an act or deliberate failure to act by
              Exult in its dealing with an Affected Employee) with respect to an
              event occurring before the Affected Employee becomes a New Exult
              Employee irrespective of when such claim is made, or which relate
              to, arise out of or are connected with any act or omission by
              Unisys, or which arise from any claims by any Affected Employees
              pursuant to any employee benefit plan or program of Unisys;

       2.2    Exult will indemnify, defend, keep indemnified and reimburse
              Unisys for any Staff Costs incurred by Unisys (other than Staff
              Costs which result from an act or deliberate failure to act by
              Unisys in its dealing with an Affected Employee) with respect to
              an event occurring after the Affected Employee becomes a New Exult
              Employee irrespective of when such claim is made, or which relate
              to, arise out of or are connected with any act or omission by
              Exult, or which arise from any claims by any Affected Employees
              pursuant to any employee benefit plan or program of Exult;

3      OFFER OF EMPLOYMENT

       3.1    For up to [***]* Exult may offer to employ an Affected Employee on
              such terms and conditions as Exult shall determine.

       3.2    Employees coming to Exult will be offered a compensation package
              that will be tied to Exult's market competitive program, which
              includes base salary, incentive compensation, eligibility to
              participate in the stock option program, 401K plan, insurance
              programs, health and welfare plans, and other standard benefits
              provided to employees.

       3.3    If relocation is part of the employment offer, employees coming to
              Exult will be eligible for relocation under the standard terms and
              conditions of the Exult relocation policy.

       3.4    As soon as reasonably practicable after the Service Agreement
              Date, Unisys, subject to any restrictions imposed by law, will
              deliver to Exult employment information containing the identity
              of, job descriptions and skill qualifications of the Affected
              Employees, and such other employment information as Exult shall
              reasonably request with respect to an Affected Employee and which
              Unisys mutually agrees to provide. As soon as reasonably
              practicable after delivery to Unisys of a written release
              agreement from an Affected Employee, Unisys shall also deliver to
              Exult such additional employment information the release of which
              is authorized by such Affected Employee's release agreement.
              Unisys and Exult shall provide reasonable cooperation with Exult's
              collection of employment information for the Affected Employees,
              including the establishment of the form of any release agreements
              and the procedures for requesting Affected Employees to provide
              such release agreements.

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

* Confidential information has been omitted.

                                       3
<PAGE>   93

PROPRIETARY AND CONFIDENTIAL                                        UNISYS/EXULT
--------------------------------------------------------------------------------

       3.5    Exult shall permit each New Exult Employee to enroll in Exult's
              benefit plans and programs under the terms and conditions of such
              plans and programs in effect at the time of such employee's
              employment with Exult, as modified in the future, and as
              supplemented or modified to reflect the following specific
              commitments to be made by Exult.

              3.5.1  [***]*

              3.5.2  Exult will offer coverage under Exult's health and welfare
                     benefit plans to New Exult Employees and their dependents
                     in accordance with the terms of Exult's health and welfare
                     benefit plans; [***]* Unisys shall be responsible for
                     all health and welfare claims that are incurred by
                     employees prior to the date they become employees of Exult.
                     Exult's health and welfare plans shall be responsible for
                     all health and welfare claims that are incurred by
                     employees after the effective date of their coverage by
                     Exult's plan.

              3.5.3  New Exult Employees will be entitled to sick leave in
                     accordance with the terms and conditions of Exult's sick
                     leave policy provided that a New Exult Employee shall
                     receive full credit for his or her prior service with
                     Unisys for purposes of determining such New Exult
                     Employee's rate of sick leave entitlement. Unisys will be
                     responsible for all vacation benefits accrued by employees
                     up to the effective date of their employment by Exult.
                     Unisys will pay out all accrued but unused vacation pay to
                     its employees who accept employment with Exult according to
                     Unisys practices and applicable laws. Exult shall provide
                     vacation according to Exult's vacation policies, [***]*

              3.5.4  Unisys shall be responsible for all workers' compensation
                     claims of an Affected Employee timely filed, either prior
                     to or subsequent to the date an Affected Employee becomes a
                     New Exult Employee for instances of injury or illness,
                     arising from or incurred in the course of employment, that
                     occur prior to the date the Affected Employee becomes a New
                     Exult Employee. Exult shall be responsible for all workers'
                     compensation claims of a New Exult Employee for instances
                     of injury or illness, arising from or incurred in the
                     course of employment, that occur on and after the date an
                     individual becomes a New Exult Employee.

       3.6    Unisys shall provide COBRA health care continuation coverage under
              the Unisys group health benefit plans (as amended from time to
              time) to each qualified beneficiary under such plans. Unisys shall
              not terminate its sponsorship of a group health plan in connection
              with the transactions contemplated by this Agreement and shall
              continue to maintain a group health benefit plan and provide COBRA
              coverage for the maximum COBRA coverage period applicable to each
              qualified beneficiary under Unisys group health plans who is, or
              whose qualifying event occurred in connection with, an Affected
              Employee.

       3.7    Unisys will be responsible for compliance with all laws, rules,
              ordinances and regulations respecting termination of any Affected
              Employees, including, without limitation, the Worker Adjustment,
              Notification and Training Act, 29 U.S.C. Section 2101 et. seq.
              ("WARN") and any similar state or local laws. Exult will provide
              such reasonable cooperation as is requested by Unisys to comply
              with such laws, rules, ordinances and regulations.

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

* Confidential information has been omitted.

                                       4

<PAGE>   94

PROPRIETARY AND CONFIDENTIAL                                        UNISYS/EXULT
--------------------------------------------------------------------------------

4      EMPLOYMENT PROVISIONS ON TERMINATION

       On termination or expiration of this Agreement, the following provisions
       will apply:

       4.1    Unisys, Appropriate Affiliate, any other Unisys Affiliate, Exult
              or a Successor Operator may, at its absolute discretion, offer to
              employ one or more of the Current Exult Employees after the
              Transfer Date. Exult will not discourage a Current Exult Employee
              from accepting such offer and Exult shall release any Current
              Exult Employee who accepts such offer of employment from its
              employment obligations to Exult (other than confidentiality
              obligations).

       4.2    Unisys shall not for a period of [***]* solicit or induce any
              employee of Exult other than a Current Exult Employee to terminate
              his or her employment with Exult. Unisys shall cause its agreement
              with a successor to provide that successor will not solicit or
              induce any employee of an Exult other than a Current Employee to
              terminate his or her employment with Exult.

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

* Confidential information has been omitted.

                                       5
<PAGE>   95

PROPRIETARY AND CONFIDENTIAL                                        UNISYS/EXULT
--------------------------------------------------------------------------------

                        UNITED STATES SERVICES AGREEMENT

                                   SCHEDULE K

                            CHANGE CONTROL MANAGEMENT

--------------------------------------------------------------------------------
US Sch. K                                                                  Exult
Final

<PAGE>   96

PROPRIETARY AND CONFIDENTIAL                                        UNISYS/EXULT
--------------------------------------------------------------------------------

                                TABLE OF CONTENTS

<TABLE>
<S>                                                                                         <C>
1       CHANGE REQUESTS......................................................................1

2       CLASSIFICATION OF THE CHANGE REQUEST.................................................1

3       EVALUATION OF THE PROPOSED CHANGE....................................................1

4       IMPACT ANALYSIS......................................................................2

5       APPROVAL.............................................................................3

6       REPORTING............................................................................3
</TABLE>

                                       i

<PAGE>   97

PROPRIETARY AND CONFIDENTIAL                                        UNISYS/EXULT
--------------------------------------------------------------------------------

                                   SCHEDULE K

                            CHANGE CONTROL MANAGEMENT

This Schedule sets out the procedure to be followed for any proposed change to
the Agreement.

1      CHANGE REQUESTS

       1.1    Either party may propose a change by submitting a change request
              in accordance with the following process.

       1.2    The change request shall be divided into two (2) sections. The
              first section shall contain the general information regarding the
              proposed change and shall be completed by the submitting party.
              The second section shall contain the impact analysis for the
              proposed change, which shall be completed by Exult.

       1.3    Change requests shall be presented by the designee of the
              submitting party to the other party's designee who shall
              acknowledge receipt by signature of the change request.

2      CLASSIFICATION OF THE CHANGE REQUEST

       The Exult designee and Unisys designee shall agree to the classification
       of the change request as follows:

       2.1    Where it is determined by the parties that the proposed change is
              an operational change, the proposed change shall be evaluated as
              set out in Section 3.1.

       2.2    Where it is determined by the parties that the proposed change is
              a Project, the proposed change shall be evaluated as set out in
              Section 3.2

       2.3    Where it is determined by the parties that the proposed change is
              a change to the terms and conditions of the Agreement or a change
              related to the schedules of the Agreement which is not related to
              a specific Project, the proposed change shall be evaluated as set
              out in Section 3.3.

       2.4    Where it is determined that the proposed change should not
              proceed, the change request shall be rejected and returned to the
              submitting party in accordance to Exult Change Control Management
              procedures.

       If the Exult designee and the Unisys designee cannot agree to the
       classification of the change request, then the change request shall be
       handled in accordance with Section 17 of the Master Agreement.

3      EVALUATION OF THE PROPOSED CHANGE

       The proposed change shall be evaluated, by classification, as described
       below:

       3.1    Operational changes

              3.1.1  Operational changes shall be implemented in accordance with
                     the Exult operational change control procedures and subject
                     to approval as documented in Section 5 of this Schedule.

                                       1
<PAGE>   98

PROPRIETARY AND CONFIDENTIAL                                        UNISYS/EXULT
--------------------------------------------------------------------------------

       3.2    Projects

              3.2.1  Exult shall perform the impact analysis as described in
                     Section 4.

              3.2.2  Exult shall prepare a project statement.

              3.2.3  The Exult designee shall submit the proposed change,
                     including the project statement, to the Unisys designee.

              3.2.4  Based on the results of the impact analysis, the Unisys and
                     Exult account management shall, within a reasonable
                     timeframe:

                     (i)    approve the proposed change and the project
                            statement and proceed to its implementation subject
                            to approval as documented in Section 5 of this
                            Schedule; or

                     (ii)   request in writing that the submitting party
                            re-submit the proposed change and project statement
                            stating which items of information it is
                            dissatisfied with, and the submitting party shall
                            re-submit the proposed change and project statement
                            within a reasonable timeframe; or

                     (iii)  reject the change request in which case Exult will
                            not implement the Project.

       3.3    Changes to the Agreement (as described in Section 2.4)

              3.3.1  Exult shall perform the impact analysis as described in
                     Section 4.

              3.3.2  The Exult designee shall submit the proposed change,
                     including the impact analysis, to be mutually agreed by
                     Exult and Unisys, subject to approval as documented in
                     Section 5 of this Schedule.

4      IMPACT ANALYSIS

       4.1    Upon determination of the classification of the proposed change,
              [***]* or to a timeframe as agreed, Exult and Unisys shall agree
              to an estimate of the time and cost that Exult proposes to charge
              to Unisys to complete the impact analysis. If Unisys determines
              that the impact analysis should not proceed, the change request
              shall be rejected and returned to the submitting party.

       4.2    If Unisys and Exult agree to proceed, Exult shall, as soon as
              reasonably practicable and acting in good faith, conduct an impact
              analysis to assess and evaluate the impact of the proposed change
              having regard to relevant factors including the following:

              [***]*

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

* Confidential information has been omitted.

                                       2
<PAGE>   99

PROPRIETARY AND CONFIDENTIAL                                        UNISYS/EXULT
--------------------------------------------------------------------------------

5      APPROVAL

       Approval for change requests shall be handled through Exult and Unisys
       Account management or as documented during Transition.

       Neither party shall be obliged to comply with any proposed changes unless
       and until approval has been given in accordance with this Change Control
       Management process and, pending approval, no change shall be made to any
       services or to the Agreements.

6      REPORTING

       A consolidated report of all approved change requests shall be included
       in the monthly report.

                                       3

<PAGE>   100
PROPRIETARY AND CONFIDENTIAL                                        UNISYS/EXULT
--------------------------------------------------------------------------------

                        UNITED STATES SERVICES AGREEMENT

                                   SCHEDULE N

                             TERMINATION ASSISTANCE

--------------------------------------------------------------------------------
US Sch. N                                                                  Exult
Final

<PAGE>   101

PROPRIETARY AND CONFIDENTIAL                                        UNISYS/EXULT
--------------------------------------------------------------------------------

                                TABLE OF CONTENTS

<TABLE>
<S>                                                                                         <C>
1       INTRODUCTION.........................................................................1

2       EXULT TERMINATION ASSISTANCE FUNCTION................................................1
</TABLE>

--------------------------------------------------------------------------------
US Sch. N                              i                                   Exult
Final

<PAGE>   102

PROPRIETARY AND CONFIDENTIAL                                        UNISYS/EXULT
--------------------------------------------------------------------------------

                                   SCHEDULE N

                             TERMINATION ASSISTANCE

1      INTRODUCTION

       Upon expiration or any termination of the Master Agreement or a Service
       Agreement, Exult will take all reasonable action requested by Unisys to
       enable the Services to continue without interruption or material
       disruption.

2      EXULT TERMINATION ASSISTANCE FUNCTION

       2.1    Deliver all Unisys data to Unisys, or Unisys designee
              ("Successor") in Exult's existing data formats, when reasonably
              requested by Unisys or Successor. Exult may not retain any Unisys
              data, apart from authorized archival copies.

       2.2    Provide or make available technical information reasonably
              requested by Unisys or Successor concerning software
              configurations, production operation of Unisys applications,
              environment, operations and procedures.

       2.3    Make knowledgeable members of Exult's account management,
              technical and operations staff available in person at Exult
              facilities or by telephone to answer questions concerning Services
              to Unisys, as performed by Exult, including the matters referred
              in Section 2.1 and 2.2 above.

       2.4    Cooperate with Unisys and Successor in implementation of a
              migration or transition plan, including reasonable testing. Unisys
              and Successor shall have primary responsibility for preparation,
              delivery and performance of any such plan.

       2.5    Remove Exult equipment located on Unisys premises as requested by
              Unisys.

       2.6    Certify to Unisys that all Unisys data and files have been removed
              from equipment managed by Exult.

       2.7    Cooperate with Unisys, Successor and other third parties. Take
              action reasonably necessary to effect an orderly transition of
              telecommunications, data center and other third party services.

       2.8    [***]*

       2.9    Cooperate with Unisys to transfer software licenses to applicable
              parties to the extent permitted by applicable licenses. Unisys
              will pay applicable transfer charges. [***]*

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

* Confidential information has been omitted.

                                       1

<PAGE>   103
PROPRIETARY AND CONFIDENTIAL                                        UNISYS/EXULT
--------------------------------------------------------------------------------

                        UNITED STATES SERVICES AGREEMENT

                                   SCHEDULE O

                             SERVICE DELIVERY VENUE

--------------------------------------------------------------------------------
US Sch. O                                                                  Exult
Final

<PAGE>   104

PROPRIETARY AND CONFIDENTIAL                                        UNISYS/EXULT
--------------------------------------------------------------------------------

                                TABLE OF CONTENTS

<TABLE>
<S>                                                                                         <C>
1       INTRODUCTION.........................................................................1

2       DELIVERY VENUE MATRIX................................................................1

3       HUMAN RESOURCES SERVICES DESCRIPTIONS................................................1
</TABLE>

                                       i

<PAGE>   105
PROPRIETARY AND CONFIDENTIAL                                        UNISYS/EXULT
--------------------------------------------------------------------------------

                                   SCHEDULE O

                             SERVICE DELIVERY VENUE

1      INTRODUCTION

This Schedule O generally describes Exult's proposed delivery of Services to
Unisys. It is subject to change, based on the evolution of the parties'
relationship, the results of transition, and further development of Exult's
business. It describes Exult's intentions, as of August 28, 2000, but is not
legally binding upon Exult, and does not amend or alter the Services described
by Schedule A, the Service Levels described by Schedule B, or any other term of
the Master Agreement, applicable Country Agreements or any other Schedule.

2      DELIVERY VENUE MATRIX

       2.1    Matrix Overview

              The venue matrix illustrates Exult's preferred delivery venue for
              each of the Human Resource processes. The checked items are
              indicative of the scope of the relationship that has been
              discussed between Exult and Unisys.

                             High Level Venue Matrix

       [***]*

3      HUMAN RESOURCES SERVICES DESCRIPTIONS

       [***]*

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

* Confidential information has been omitted.

                                       1

<PAGE>   106
                                                                       Final

                              US SERVICE AGREEMENT

Pursuant to the Master Services Agreement ("Master Agreement") dated August 28,
2000 between Exult, Inc. ("Exult") and Unisys Corporation ("Unisys"),

1.     Unisys hereby engages Exult to provide human resources and related
       services pursuant to Unisys in the United States of America pursuant to
       the terms of the Master Agreement and the Service Agreements. Exult
       agrees to provide such Services in accordance with the terms of the
       Master Agreement, which are incorporated by this reference in their
       entirety.

2.     The following Schedules are attached to this US Service Agreement and
       incorporated by this reference.

               Schedule A         Description of Services (US)
               Schedule B         Service Levels (US)
               Schedule C         Fees and Invoicing(US)
               Schedule D         Approved Subcontractors (US)
               Schedule E         Designated Unisys Competitors
               Schedule F         Global Transition Plan
               Schedule G         Transition Plan (US)
               Schedule H         Projects
               Schedule I         Listed Unisys Competitors
               Schedule J         Employee Transfer Arrangements (US)
               Schedule K         Change Control Management
               Schedule N         Termination Assistance
               Schedule O         Service Delivery Venues
               Schedule Z         Definitions

        Executed at Blue Bell, Pennsylvania on August 28, 2000, by the Parties
undersigned authorized representatives.

                                    UNISYS CORPORATION

                                    By:
                                        ---------------------------------------
                                        Name: David O. Aker
                                        Title:  Senior Vice President,
                                        Worldwide Human Relations

                                    EXULT, INC.

                                    By:
                                        ---------------------------------------
                                        Name:  Scott J. Figge
                                        Title: Vice President<PAGE>   1
                                                                   EXHIBIT 10.36

                                 SECOND AMENDED AND RESTATED
                                   JOINT VENTURE AGREEMENT

                                              OF

                             MARINA DISTRICT DEVELOPMENT COMPANY

                           Dated as of August 31, 2000

<PAGE>   2

                           SECOND AMENDED AND RESTATED
                             JOINT VENTURE AGREEMENT

                                       OF

                       MARINA DISTRICT DEVELOPMENT COMPANY

        This Second Amended and Restated Joint Venture Agreement (the
"Agreement") is made as of August 31, 2000, by and between MAC, CORP. ("MR
Sub"), a New Jersey corporation which is a wholly owned subsidiary of Mirage
Resorts, Incorporated, a Nevada corporation ("MRI"), and Boyd Atlantic City,
Inc. ("Boyd Sub"), a New Jersey corporation which is a wholly owned subsidiary
of Boyd Gaming Corporation, a Nevada corporation ("Boyd") (MR Sub and Boyd Sub
are hereinafter referred to individually as a "Venturer" and collectively as the
"Venturers"). MRI and Boyd are also parties to this Agreement solely for the
specific purposes enumerated herein.

                                    PREAMBLE

        WHEREAS, on May 29, 1996, MR Sub, MRI, Atlandia Design and Furnishings,
Inc., a New Jersey corporation (which was subsequently dissolved), Grand K,
Inc., a Nevada corporation, and Boyd entered into that certain Joint Venture
Agreement (the "Original Agreement"), relating to a joint venture formed for the
purpose of designing, developing, constructing, owning and operating a
hotel-casino and related facilities on property located in the "Huron North
Redevelopment Area" in the Marina area of Atlantic City, New Jersey, which
property was conveyed to MR Sub by deed, dated January 8, 1998, recorded in the
office of the County Clerk of the County on January 9, 1998, pursuant to a
resolution of the City Council of the City of Atlantic City, New Jersey (the
"City"), duly adopted at a meeting of the City Council on December 17, 1997, and
signed by the Mayor of the City on December 18, 1997, as such deed was modified
by that certain Agreement Modifying Deed, recorded in Book 6237, Page 223, on
January 18, 1999, between the City and MR Sub (collectively, the "Parcel Deed"),
and which property is designated as the "H-Tract" on Exhibit A attached hereto
(the "Parcel").

        WHEREAS, on July 14, 1998, Grand K, Inc. assigned all of its right,
title and interest in and to the Original Agreement to Boyd Sub.

        WHEREAS, on July 14, 1998, the Parties entered into that certain Amended
and Restated Joint Venture Agreement, as amended pursuant to that certain First
Amendment to Amended and Restated Joint Venture Agreement, dated as of September
10, 1998 (as amended, the "Amended and Restated Agreement"), which Amended and
Restated Agreement superseded the Original Agreement.

        WHEREAS, MR Sub has subdivided the Parcel and has agreed to convey to
the Joint Venture, upon the terms and conditions hereinafter set forth, that
certain portion of the Parcel

                                       -1-

<PAGE>   3

commonly known as Block 576, Lot 1.03, comprised of (or to be comprised of)
approximately twenty-seven and twenty-seven one-hundredths (27.27) acres (the
"Property"). The remainder of the Parcel, excluding the Property, as the same
may be further subdivided from time to time, shall be referred to herein as
"Tract II."

        WHEREAS, the Parties desire to amend and restate the Amended and
Restated Agreement upon the terms and conditions hereinafter set forth in this
Agreement.

        NOW THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, and in consideration of the mutual
promises set forth, the parties agree as follows:

                                    ARTICLE 1

                                THE JOINT VENTURE

        Section 1.1 Organization. The Venturers hereby confirm that they have
formed and established a joint venture in the form of a general partnership (the
"Joint Venture") under and pursuant to, and which shall continue to constitute a
joint venture for purposes of, the provisions of this Agreement and the New
Jersey Uniform Partnership Act (the "Act") from and after May 29, 1996, upon the
terms and conditions set forth in this Agreement.

        Section 1.2 Name. The name of the Joint Venture shall be Marina District
Development Company, and all business of the Joint Venture shall be conducted
solely in such name or in such other name or names as the Venturers may mutually
determine.

        Section 1.3 Place of Business. The principal office of the Joint Venture
shall be located at such place within the County as may be approved by the
Venturers.

        Section 1.4 Business of the Joint Venture. The business of the Joint
Venture is to acquire and own the Property and to design, develop, construct,
finance, own and operate the Facility on the Property. The purposes of the Joint
Venture shall include the conduct of casino gaming. In furtherance of its
business, the Joint Venture shall have and may exercise all the powers now or
hereafter conferred by the laws of the State of New Jersey on partnerships
formed under the laws of that State, and may do any and all things related or
incidental to its business as fully as natural persons might or could do under
the laws of that State. One such power shall include, but shall not be limited
to, the creation, ownership and operation of an entity to be utilized in
connection with financing the Facility, whose board of directors shall be
appointed by the Managing Venturer.

        Section 1.5   Purposes Limited.  The Joint Venture shall be a joint
venture only for the purposes specified in Section 1.4. Except as otherwise
provided in this Agreement, the Joint Venture

                                       -2-

<PAGE>   4

shall not engage in any other activity or business and neither Venturer shall
have any authority to hold itself out as an agent of the other Venturer in any
other business or activity.

        Section 1.6 No Payments of Individual Obligations. The Venturers shall
use the Joint Venture's credit and assets solely for the benefit of the Joint
Venture. No asset of the Joint Venture shall be transferred or encumbered for or
in payment of any individual obligation of a Venturer.

        Section 1.7 Statutory Compliance. The Joint Venture shall exist under
and be governed by, and this Agreement shall be construed and enforced in
accordance with, the laws of the State of New Jersey, including the New Jersey
Casino Control Act, but excluding its conflict of law principles. The Venturers
shall make all filings and disclosures required by, and shall otherwise comply
with, all such laws. The Venturers shall execute, file and record in the
appropriate records any assumed or fictitious name certificate required by law
to be filed or recorded in connection with the formation of the Joint Venture
and shall execute, file and record such other documents and instruments as may
be necessary or appropriate with respect to the formation of, and conduct of
business by, the Joint Venture.

        Section 1.8 Title to Property. All property, whether real or personal,
tangible or intangible, owned by the Joint Venture shall be owned in the name of
the Joint Venture and no Venturer shall have any ownership interest in such
property in its individual name or right and each Venturer's interest in the
Joint Venture shall be personal property for all purposes.

        Section 1.9 Duration. The Joint Venture commenced as of May 29, 1996 and
shall continue until dissolved and liquidated pursuant to law or any provision
of this Agreement.

        Section 1.10  Definitions.  As used in this Agreement:

        "Acceptance Notice" has the meaning set forth in Section 11.4 hereof.

        "Accountants" has the meaning set forth in Section 7.3 hereof.

        "Act" has the meaning set forth in Section 1.1 hereof.

        "Affiliate" means a person which directly, or indirectly through one or
        more intermediaries, controls, is controlled by or is under common
        control with the person specified; provided, however, that a Venturer,
        as such, shall not be deemed to be an Affiliate of the other Venturer.

        "Agreement" means this Second Amended and Restated Joint Venture
        Agreement, as the same may be modified or amended from time to time in
        accordance with the terms hereof.

        "Allocable Share" means the Joint Venture's equitable share of any
        Government Improvement Costs and Master Plan Improvement Costs for
        which the Joint Venture is

                                       -3-

<PAGE>   5

        responsible in accordance with the terms and provisions hereof relating
        to the components of the Government Improvements and Master Plan
        Improvements that are not for the sole use or benefit of either the
        Property or Tract II. The Venturers agree that to the extent that a
        Government Improvement or Master Plan Improvement for which the Joint
        Venture is responsible in accordance with the terms and provisions
        hereof is for the use or benefit of the entire Parcel, the Joint
        Venture's Allocable Share of the Government Improvement Costs and/or
        Master Plan Improvement Costs relating thereto shall be 25%. The
        Venturers further agree that the Joint Venture's Allocable Share of the
        Initial Master Plan Improvement Costs is as set forth on Exhibit B
        attached hereto and incorporated herein by this reference.

        "Amended and Restated Agreement" has the meaning set forth in the
        Preamble to this Agreement.

        "Applicable Ratio" has the meaning set forth in Section 3.5 hereof.

        "Appraisal Notice" has the meaning set forth in Section 11.5 hereof.

        "Appraised Value" has the meaning set forth in Section 11.5 hereof.

        "Boyd" has the meaning set forth in the first paragraph of this
        Agreement.

        "Boyd License Agreement" has the meaning set forth in Section 8.2 of
         this Agreement.

        "Boyd Sub" has the meaning set forth in the first paragraph of this
        Agreement.

        "Building Elevation Plans" means that certain Valet Parking Level Plan,
        dated as of August 29, 2000, prepared by Anthony A. Marnell II,
        Chartered, a copy of which has been provided to Boyd Sub and MR Sub
        prior to the execution of this Agreement.

        "Bulkhead Project" has the meaning set forth in Section 4.8 of this
        Agreement.

        "CAFRA" means the New Jersey Coastal Area Facilities Review Act and the
        rules, regulations and policies promulgated thereunder, as each may be
        amended from time to time.

        "Capital Account" has the meaning set forth in Section 3.10 hereof.

        "Capital Expenditure Budget" has the meaning set forth in Section 7.11
        hereof.

        "Capital Expenditure Reserve Account" has the meaning set forth in
        Section 7.10 hereof.

        "City" has the meaning set forth in the Preamble to this Agreement.

        "Closure Reports" has the meaning set forth in Section 4.4(b) hereof.

                                       -4-

<PAGE>   6

        "Code" has the meaning set forth in Section 5.1 hereof.

        "Commencement of Construction" means (i) with respect to construction of
        the Facility, the date that a notice to proceed is issued by the
        Managing Venturer or any of its Affiliates to the contractor(s) for the
        Facility, which date shall, in any event, occur only after receipt by
        the responsible Venturer or by MRI, as appropriate, of all permits,
        authorizations and approvals necessary to commence construction of the
        Facility, including without limitation, all Master Plan Approvals, and
        (ii) with respect to construction of the MRI Casino Project, the date
        that a notice to proceed is issued by MRI or its Affiliates to the
        contractor(s) for the MRI Casino Project, which date shall, in any
        event, occur only after receipt by MRI or MR Sub, as applicable, of all
        permits, authorizations and approvals necessary to commence construction
        of the MRI Casino Project, including without limitation, all Master Plan
        Approvals.

        "Connector" means the Atlantic City-Brigantine Connector road
        improvement project currently under construction in the City, as the
        same may be modified from time to time hereafter.

        "Construction Financing" means debt financing, which may be unsecured or
        collateralized by one or more liens on the Property and the Facility or
        any portion thereof (including purchase money financing collateralized
        by furniture, furnishings, fixtures, machinery or equipment), to be
        obtained by the Joint Venture from one or more commercial banks or other
        lenders (including vendors or the Venturers) for the purpose of funding
        Project Costs.

        "Construction Period" has the meaning set forth in Section 4.1 hereof

        "County" means Atlantic County, New Jersey.

        "CRDA" means the New Jersey Casino Reinvestment Development Authority.

        "Cumulative Excess Contributions" has the meaning set forth in Section
        3.5 hereof.

        "Defaulting Venturer" has the meaning set forth in Section 12.1 hereof

        "Development Agreement" means that certain agreement entitled "An
        Agreement between the City of Atlantic City and MRI for the Development
        of the Huron North Redevelopment Area," dated May 3, 1996, including all
        exhibits thereto, as the same was previously amended by Amendments
        thereto dated January 8, 1998, December 15, 1998 and January 13, 1999,
        and as the same may be amended or supplemented from time to time
        hereafter upon the terms and conditions permitted hereby.

        "Disapproval Notice" has the meaning set forth in Section 1 1.4 hereof.

                                       -5-

<PAGE>   7

        "Distributable Cash" has the meaning set forth in Section 6.1 hereof.

        "Employee Parking Lot" means a surface parking lot which shall be
        constructed upon a portion of Tract II, as more particularly provided in
        Section 4.5(a) hereof.

        "Employee Parking Lease" means the lease of the Employee Parking Lot, to
        be entered into between the Joint Venture and MR Sub upon the terms and
        conditions more particularly set forth in Section 4.5(a) hereof.

        "Environmental Assessment Reports" shall mean all environmental
        assessment reports and data relating to the Property and the Parcel,
        including without limitation, all Phase I, II and III environmental
        assessments, Closure Reports, and any and all documentation,
        correspondence, reports or data relating to any investigation, analyses,
        cleanup, detoxification, testing, monitoring or remediation of the
        Property and the Parcel or otherwise relating to the preparation and
        implementation of any closure, remediation or other required plans,
        together with evidence of all federal, state and local governmental
        consents and approvals relating thereto.

        "Event of Bankruptcy" has the meaning set forth in Section 12.1 hereof.

        "Event of Default" has the meaning set forth in Section 12.1 hereof.

        "Excess Government Improvement Costs" means the amount, if any, of the
        Joint Venture's share of Government Improvement Costs that exceeds, in
        the aggregate, the sum of $7,500,000.

        "Excess Master Plan Improvement Costs" means the amount, if any, of the
        Joint Venture's share of Master Plan Improvement Costs relating to the
        Initial Master Plan Improvements that exceeds, in the aggregate, the sum
        of $27,500,000.

        "Facility" means a new hotel-casino and related restaurant,
        entertainment, retail and other facilities and amenities, containing not
        less than 2,000 guestrooms, to be designed, developed and constructed by
        the Joint Venture on the Property, including all furniture, fixtures,
        machinery, equipment and other tangible personal property located
        therein and used in connection therewith except for any furniture,
        fixtures, machinery, equipment and other tangible personal property
        owned by third parties and to be used at or incorporated into the
        Property relating to (i) the central power plant and related facilities
        to be constructed and operated by a third party provider, or (ii) any
        facilities leased to third parties for operation of retail, restaurant
        or spa facilities.

        "Force Majeure Event" has the meaning set forth in Section 4.2(f)
        hereof.

                                       -6-

<PAGE>   8

        "Government Improvements" means all off-site and on-site improvements
        (other than the Initial Master Plan Improvements and any other Master
        Plan Improvements to be constructed upon the Parcel) required by any
        federal, state, county, municipal or other governmental or
        quasi-governmental agency or by any utility provider, in order to enable
        the construction of each of the Facility, the Employee Parking Lot, and,
        if applicable, the MRI Casino Project and the Third Casino on the
        Parcel, including without limitation, the construction or relocation of
        any required common air and water quality infrastructure, wetlands
        remediation, solid waste, ground water and storm water runoff facilities
        and other similar improvements or projects, and the construction of all
        improvements required to bring all necessary utilities to the Parcel and
        to the Property (including without limitation, water, gas, electricity,
        sewer and telephone), and the relocation of any existing utility service
        or installation located upon the Parcel that would obstruct the intended
        development thereof.

        "Government Improvement Costs" means all costs and expenses of
        designing, engineering, developing and constructing the Government
        Improvements, including without limitation, all direct and indirect
        costs related thereto, such as labor, materials, supplies, machinery,
        equipment, construction management, legal, architectural, engineering
        and design fees, site work, utility installation and hookup or
        connection charges and fees, construction permits, certificates, bonds,
        and other deposits, but excluding any and all costs associated with
        conveying the Property to the Joint Venture which are the sole
        responsibility of MRI or MR Sub or their Affiliates, as more
        particularly provided in Section 3.2 hereof, and excluding any other
        costs or expenses which are the sole obligation of any of the Parties
        pursuant to the terms hereof.

        "Initial Master Plan Improvements" means, collectively, (i) all of those
        Master Plan Improvements of the type or in the nature of those that are
        currently anticipated to be constructed upon the Parcel as more
        particularly described in that portion of the Tishman Construction
        Company of New Jersey Order of Magnitude Estimate - Update, dated
        February 22, 2000 attached hereto as Exhibit C-1 and incorporated herein
        by this reference; and (ii) preparation of sub-grade up to the underside
        of the porte cochere road paving surface. Except as otherwise
        specifically provided in this Agreement, all Initial Master Plan
        Improvements shall be subject to the cap on Excess Master Plan
        Improvement Costs.

        "Initiating Venturer" has the meaning set forth in Section 11.4 hereof

        "Interest" has the meaning set forth in Section 3.6 hereof.

        "Jobs and Business Opportunities Program" means a program designed to
        satisfy the requirements and conditions contained in Section 9 of the
        Development Agreement.

        "Losses" has the meaning set forth in Section 5.1 hereof.

                                       -7-

<PAGE>   9

        "Managing Venturer" means Boyd Sub until such time, if any, as MR Sub
        becomes the Managing Venturer pursuant to Section 9.3 hereof, and
        thereafter means MR Sub or its successor as Managing Venturer.

        "Master Plan" means the engineering, design and specifications for (i)
        the entirety of the infrastructure and other improvements that will
        jointly benefit or be used in common by the MRI Casino Project, the
        Facility, and if applicable, the Third Casino, including without
        limitation, all common landscaping, signage, lighting and fencing, the
        specific points at which the Connector will connect to the Parcel, all
        roads leading to and from the porte- cocheres and the preparation of
        sub-grade up to the underside of the porte cochere road paving surface,
        all traffic, parking, and circulation improvements (including, without
        limitation, roads, bridges, walkways, monorail systems and other means
        of transportation within, adjoining or servicing the Parcel and the
        Property and all landscaping, lighting and fencing related thereto); and
        (ii) all Government Improvements; excluding only the engineering and
        design of those improvements that specifically, solely, and individually
        comprise, respectively, the Facility, the MRI Casino Project, and if
        applicable, the Third Casino.

        "Master Plan Approvals" means all those permits, licenses, and
        approvals, issued in final, unappealable, and unconditional form, that
        are required under all applicable federal, state, county and municipal
        laws, regulations or governmental or quasi-governmental requirements
        pertaining to or necessary for the formal adoption and approval of the
        Master Plan and the construction of the Government Improvements,
        excluding only those permits, licenses, and approvals that pertain
        solely to the improvements that specifically, solely, and individually
        comprise, respectively, the Facility, the MRI Casino Project, and if
        applicable, the Third Casino.

        "Master Plan Improvement Costs" means all costs and expenses of
        designing, engineering, developing, constructing, equipping and opening
        any Master Plan Improvements, including without limitation, all direct
        and indirect costs related thereto, such as labor, materials, supplies,
        furniture, furnishings, fixtures, machinery, equipment, construction
        management, legal, architectural, engineering and design fees, site
        work, permits, certificates, bonds, and other deposits, but excluding
        any and all costs associated with conveying the Property to the Joint
        Venture, which are the sole responsibility of MRI or MR Sub or their
        Affiliates, as more particularly provided in Section 3.2 hereof, and
        excluding any other costs or expenses which are the sole obligation of
        any of the Parties pursuant to the terms hereof.

        "Master Plan Improvements" means any and all improvements included in or
        built or to be built pursuant to the Master Plan other than any specific
        improvements included in the Master Plan which constitute Government
        Improvements.

        "Memorandum of Agreement" has the meaning set forth in Section 14.22 of
        this Agreement.

                                       -8-

<PAGE>   10

        "MGM" means MGM MIRAGE, a Delaware corporation.

        "MRI" has the meaning set forth in the first paragraph of this
        Agreement.

        "MRI Casino Project" means a hotel-casino project which may be
        constructed by MRI or its Affiliates or by any purchaser of Tract II
        from MRI or its Affiliates.

        "MR Sub" has the meaning set forth in the first paragraph of this
        Agreement.

        "New Jersey Casino Control Act" means all the terms and provisions of
        N.J.S.A. 5:12-1 et. seq., as the same may be modified and amended from
        time to time.

        "New Jersey Gaming Authorities" means, collectively, the New Jersey
        Casino Control Commission and the New Jersey Division of Gaming
        Enforcement, or any governmental agency of the State of New Jersey or
        its political subdivisions which succeeds to the functions of such
        agencies.

        "NJDEP" means the New Jersey Department of Environmental Protection.

        "Non-Managing Venturer" means MR Sub until such time, if any, as MR Sub
        becomes the Managing Venturer pursuant to Section 9.3 hereof, and
        thereafter means Boyd Sub or its successor as Non-Managing Venturer.

        "Offering Notice" has the meaning set forth in Section 11.4 hereof.

        "Option" has the meaning set forth in Section 4.5(c) hereof.

        "Option Agreement" has the meaning set forth in Section 4.5(c) hereof.

        "Option Parcel" has the meaning set forth in Section 4.5(c) hereof.

        "Ordinance" has the meaning set forth in Section 3.2(a) hereof.

        "Original Agreement" has the meaning set forth in the Preamble to this
        Agreement.

        "Parcel" has the meaning set forth in the Preamble to this Agreement.

        "Parcel Deed" has the meaning set forth in the Preamble to this
        Agreement.

        "Party" or "Parties" means MR Sub, MRI, Boyd Sub and Boyd, individually
        or collectively, as appropriate, and their respective successors and
        assigns.

        "Profits" has the meaning set forth in Section 5.1 hereof.

                                       -9-

<PAGE>   11

        "Program" means the number of guestrooms; the number of parking spaces;
        the square footage of the retail components of the Facility, including
        but not limited to the shops, restaurants and other food and beverage
        outlets, meeting and ballroom space, and spa; and the number of slot
        machines and table games to be contained in the Facility, in each case
        as set forth on Exhibit D attached hereto and incorporated herein by
        this reference, as the same may be amended from time to time as more
        particularly provided in this Agreement.

        "Project Costs" means all hard and soft costs and expenses of designing,
        engineering, developing, constructing, equipping and opening the
        Facility paid or accrued prior to the end of the Construction Period,
        including without limitation (i) all direct and indirect costs related
        thereto, such as labor, materials, site work, supplies, furniture,
        furnishings, fixtures, machinery, equipment, construction management,
        architectural, engineering and design fees paid to non-Affiliates of
        Boyd Sub, (ii) all out-of-pocket fees and expenses for which Boyd Sub
        shall be entitled to reimbursement or compensation pursuant to either
        Section 2.3 or Section 2.4 hereof, and all salaries paid to employees of
        Boyd Sub or its Affiliates who devote substantially full time to the
        Joint Venture's designing, engineering, developing, constructing,
        equipping and opening the Facility, (iii) all Master Plan Improvement
        Costs and Government Improvement Costs, to the extent payable by the
        Joint Venture pursuant to the terms of Section 4.2. hereof, (iv) the
        cost of installing utility service from the Property boundary, (v) the
        cost of design and construction approvals, permits, certificates, bonds
        and other non-refundable deposits, (vi) preopening expenses, (vii) costs
        and expenses of preparing, filing and processing applications to obtain
        licenses and approvals from the New Jersey Gaming Authorities to the
        extent payable by the Joint Venture pursuant to Section 4.3(d) hereof,
        (viii) initial gaming and non-gaming bankroll, (ix) interest and fees on
        the Construction Financing; (x) the cost of creating and implementing
        the Jobs and Business Opportunities Program; and (xi) the value of the
        Property as specified in Section 3.2(f) hereof; but excluding (A) costs
        and expenses of acquiring any additional property pursuant to Section
        3.4 hereof; (B) all Road Development Costs associated with the
        Connector; (C) except as otherwise provided in Section 4.4 hereof, all
        costs and expenses associated with the evaluation and remediation of
        environmental contamination of the Property; (D) the amount of Excess
        Master Plan Improvement Costs, if any, which are the sole obligation of
        MR Sub, as provided in Section 4.2(c) hereof; and (E) any other costs or
        expenses which are the sole obligation of MRI or MR Sub as provided
        herein.

        "Property" has the meaning set forth in the Preamble to this Agreement.

        "Reciprocal Easement Agreement" has the meaning set forth in Section
        3.2(a) hereof.

        "Redevelopment Plan" means that certain Redevelopment Plan for the Huron
        North Redevelopment Area, adopted by the City, dated as of March 15,
        1995.

        "Resort Zone Designation" means the land zoning classification of the
        City which authorizes and which is recognized by the New Jersey Gaming
        Authorities as acceptable for the

                                      -10-

<PAGE>   12

        construction of a casino facility with all forms of legalized gaming
        permitted pursuant to the laws of the State of New Jersey.

        "Responding Venturer" has the meaning set forth in Section 11.4 hereof.

        "Reverter" has the meaning set forth in Section 3.2(a) hereof.

        "Road Development Agreement" means that certain Road Development
        Agreement, dated as of January 10, 1997, by and among the State of New
        Jersey, SJTA and AC Holding Corp., a Nevada corporation, as successor by
        assignment to MRI, which Road Development Agreement has been amended
        pursuant to that certain First Amendment, dated as of July 31, 1997,
        that certain Second Amendment, dated as of October 10, 1997, that
        certain Amended and Restated Third Amendment, dated as of February 1,
        1999 and that certain Fourth Amendment, dated as of October 30, 1999,
        and as the same may hereafter be amended or supplemented from time to
        time upon the terms and conditions permitted hereby.

        "Road Development Costs" means all costs and expenses of designing,
        developing, constructing, equipping and opening the Connector, including
        without limitation, any and all direct and indirect costs related
        thereto, such as labor, materials, supplies, fixtures, machinery,
        equipment, landscaping, construction management, legal, architectural,
        engineering and design fees, site work, utility installation and hook-up
        fees, construction permits, certificates, bonds, and deposits, and any
        other costs payable by MRI or its Affiliates pursuant to the terms of
        the Road Development Agreement.

        "Survey" shall mean an ALTA survey of the Property prepared by a
        licensed surveyor or civil engineering firm, which shall be certified to
        the Joint Venture, each of the Parties, and the Joint Venture's title
        insurer, and which shall include, without limitation, the legal
        description and gross acreage of the Property, and the locations of any
        existing improvements, easements and servitudes existing upon or
        encumbering the Property.

        "SJTA" means the South Jersey Transportation Authority.

        "Special Revenue Bonds" means the various series of Special Revenue
        Bonds (Atlantic City/Brigantine Connector Project - CRDA H-Tract Revenue
        Pledge Agreement) issued or to be issued by SJTA to MRI or an Affiliate
        of MRI pursuant to SJTA's Resolution adopted on October 8, 1997 and the
        Bond Purchase Agreement dated as of October 10, 1997 between SJTA and
        MRI, as the same may be amended from time to time hereafter.

        "Third Casino" means a casino-hotel project that, in addition to the
        Facility and the MRI Casino Project, may be constructed upon the Parcel.

        "Third Party" has the meaning set forth in Section 11.4(a) of this
        Agreement.

                                      -11-

<PAGE>   13

        "Tract II" has the meaning set forth in the Preamble to this Agreement.

        "Transfer" has the meaning set forth in Section 11.1 hereof.

        "Tri-Party Agreement" means that certain agreement captioned H-Tract
        Tri-Party Agreement, contemplated to be executed pursuant to the
        Ordinance, by and among the City, the Joint Venture and MR Sub.

        "Vacated Land" has the meaning set forth in Section 3.2(a) hereof.

        "Venturer" and "Venturers" means, individually or collectively, as
        applicable, the parties named as such in the first paragraph of this
        Agreement or any successor to either party by Transfer expressly
        permitted by this Agreement.

                                    ARTICLE 2

                                  THE VENTURERS

        Section 2.1 Identification. MR Sub and Boyd Sub shall be the Venturers
of the Joint Venture. No other person may become a Venturer except pursuant to a
Transfer specifically permitted under and effected in compliance with this
Agreement.

        Section 2.2 Services of Venturers. During the existence of the Joint
Venture, the Venturers shall be required to devote only such time and effort to
Joint Venture business as may be necessary to promote adequately the interests
of the Joint Venture and the mutual interests of the Venturers, it being
specifically understood and agreed that the Venturers shall not be required to
devote full time to Joint Venture business and, except as provided in Section
3.4 hereof, each Venturer and its Affiliates may at any time and from time to
time engage in and possess interests in other business ventures of every type
and description, independently or with others, whether or not such ventures
relate to or compete with the Facility; and neither the Joint Venture nor the
other Venturer shall by virtue of this Agreement have any right, title or
interest in or to such independent ventures or to the income or profits derived
therefrom. The Venturers may, but shall not be required to, organize a
management company under the laws of Nevada to manage the affairs of the Joint
Venture in a manner consistent with the provisions of this Agreement.

        Section 2.3 Reimbursement and Fees. Unless expressly provided for in
this Agreement or approved by each of the Venturers, neither of the Venturers
nor any Affiliate thereof shall be paid any compensation for its management
services to the Joint Venture provided pursuant to the terms hereof or be
reimbursed for out-of-pocket, overhead or general administrative expenses.
Notwithstanding the foregoing, the Managing Venturer and its Affiliates shall be
entitled to reimbursement by the Joint Venture for reasonable out-of-pocket
costs and expenses incurred for travel to and from the Facility in connection
with the performance of any services required or

                                      -12-

<PAGE>   14

contemplated by this Agreement, including without limitation, travel in
connection with designing, developing, constructing, and operating the Facility.
In addition, in the event the Managing Venturer requests employees of MR Sub or
its Affiliates to travel to the Facility for purposes of the Joint Venture's
business, or employees of MR Sub or its Affiliates to travel to Las Vegas,
Nevada for purposes of the Joint Venture's business, then MR Sub or its
Affiliates shall be entitled to reimbursement by the Joint Venture for
reasonable out-of-pocket costs and expenses incurred for such travel.

        Section 2.4 Transactions with Affiliates. The Managing Venturer shall be
entitled to employ or retain, or enter into any transaction or contract with,
any Venturer or any officer, employee or Affiliate of any Venturer, provided
that the compensation and other terms and conditions of any such arrangement are
no less favorable to the Joint Venture than those that could reasonably be
obtained at the time from an unrelated party providing comparable goods or
services.

        Section 2.5 Liability of the Venturers; Indemnification. Except as
otherwise may be required by the provisions of the New Jersey Casino Control
Act, neither Venturer shall be liable for damages or otherwise to the Joint
Venture or the other Venturer for any act or omission performed or omitted by it
in good faith on behalf of the Joint Venture and in a manner reasonably believed
by it to be within the scope of the authority granted to it by this Agreement
and in the best interests of the Joint Venture if it shall not have been guilty
of gross negligence, bad faith or willful misconduct with respect to such acts
or omissions. Each Venturer shall be indemnified by the Joint Venture for, from
and against any and all claims, losses, damages and liabilities, including
reasonable attorneys' fees which shall be reimbursed as incurred, arising out of
or relating to any act or failure to act performed or omitted by it within the
scope of the authority conferred upon it by this Agreement; provided, however,
that such indemnity shall be payable only if such Venturer acted in good faith
and in a manner it reasonably believed to be in, or not opposed to, the best
interests of the Joint Venture. Any indemnity under this Section 2.5 shall be
paid from, and shall be limited to the extent of, Joint Venture assets, and no
Venturer shall have any personal liability on account thereof.

                                    ARTICLE 3

                 CAPITAL CONTRIBUTIONS; LOANS; CAPITAL ACCOUNTS

        Section 3.1 Initial Capital Contributions. Each Venturer previously
contributed to the Joint Venture, as its initial capital contribution, cash in
the amount of $1,000.

        Section 3.2   Contribution of Property.

        (a) Following the latest of such time as: (i) the City shall have
adopted an ordinance substantially in the form of Exhibit E attached hereto and
incorporated herein by this reference (the "Ordinance") providing that upon
conveyance of the Property to the Joint Venture, the Property shall be released
from all the requirements, restrictions and conditions of the Development
Agreement,

                                      -13-

<PAGE>   15

other than the reversion provisions contained in the Development Agreement and
Parcel Deed, as amended (collectively, the "Reverter"), and upon substantial
completion of the Facility, the entire Parcel shall be released from the
Reverter and the City will provide the Joint Venture, for recordation in the
office of the County Clerk of the County pursuant to N.J.S.A. 46:15-1.1 et.seq.,
with an instrument to reflect the release of the entire Parcel from the
Reverter; (ii) MR Sub or its Affiliates shall have obtained all other
governmental or quasi-governmental approvals necessary to permit the transfer of
title to the Property to the Joint Venture; (iii) the City has vacated the
existing public works facilities located on the Property, and MRI, MR Sub or the
City, as appropriate, has caused all such facilities to be completely removed
from the Property (it being understood and agreed, however, that underground
piling beneath the public works facilities shall remain in place, and upon
Commencement of Construction of the Facility, MRI will promptly reimburse the
Joint Venture, in the amount of $35,000, as a one-time payment for the
installation of new piles in and around the area of the existing underground
piles, as shown on Pile Overlay Drawing P-1, dated as of January 6, 2000, and
prepared by Paulus, Sokolowski and Sartor, Inc.); (iv) MRI and MR Sub have
obtained all Master Plan Approvals; (v) Managing Venturer shall have obtained
all requisite approvals for construction of the Facility, as contemplated
hereunder, from the NJDEP and the Atlantic City Planning Board; (vi) MRI or MR
Sub shall have obtained from the New Jersey Department of Transportation or the
SJTA, as applicable, a vacation and extinguishment of any public rights in a
certain portion of the former North Carolina Avenue having a size of 0.067
acres, all as more specifically shown on Exhibit F attached hereto and made a
part hereof (the "Vacated Land"), which vacation and extinguishment shall be in
a form acceptable to Managing Venturer, in its reasonable discretion, and
acceptable to its title insurer and shall be sufficient to convey good and
marketable fee simple title to the Vacated Land to the Joint Venture and to
enable the Joint Venture, upon payment of the regular and customary insurance
premium, to obtain an owner's policy of title insurance from its title insurer,
insuring, without exception, the Joint Venture as the fee simple owner of the
Vacated Land; (vii) MRI, MR Sub or its Affiliates or their successors and
assigns shall have provided to the Joint Venture a reciprocal easement agreement
(the "Reciprocal Easement Agreement") in form and substance acceptable to
Managing Venturer, in its reasonable discretion, and acceptable to the provider
of Construction Financing, and in form and substance legally sufficient for
recordation in the office of the County Clerk of the County, granting to the
Joint Venture such easements and other rights to use any Governmental
Improvements or Master Plan Improvements which are located on the Parcel and are
necessary or desirable, in the reasonable opinion of Managing Venturer, for the
Joint Venture's construction, use, maintenance or occupancy of the Facility,
including but not limited to the Initial Master Plan Improvements; (viii) MR Sub
and Managing Venturer shall have agreed upon the form and substance of the
Option Agreement; (ix) MR Sub and Managing Venturer shall have agreed upon the
form and substance of the Employee Parking Lease; and (x) MR Sub and Boyd Sub
shall be satisfied, in their reasonable discretion, that all conditions to allow
the first draw under the Construction Financing shall have been met or are
capable of being met; MR Sub shall, as an additional capital contribution,
convey, or cause to be conveyed, to the Joint Venture fee simple title to the
Property. Such conveyance shall be made by bargain and sale deed, with covenants
as to the grantor's acts, and with covenants that the Property shall be free and
clear of all monetary liens and encumbrances and all other liens, encumbrances,
rights and restrictions which would materially adversely affect the Joint
Venture's

                                      -14-

<PAGE>   16

contemplated use of the Property, other than those liens, encumbrances, rights
and restrictions contained or referred to in (i) the Parcel Deed or (ii) the
Transnation Title Insurance Company Title Commitment number 98-14779, dated
effective as of December 27, 1999 (except for Exception No. 23, relating to the
Reverter, which shall be modified pursuant to the Ordinance.

        (b) Boyd Sub acknowledges that a portion of the Property is not
currently within the Resort Zone Designation, and such portion is not zoned for
the construction of the casino component of the proposed Facility. MRI and MR
Sub hereby represent and warrant, however, that the zoning for the portion of
the Property that is not within the Resort Zone Designation will allow for the
construction of restaurants, hotel towers, retail, parking garages, showrooms,
administrative office space and any and all other non-casino space to be
developed in connection with the Facility. To the extent that the City or the
New Jersey Gaming Authorities shall require a re-zoning of all or any portion of
the Property to the Resort Zone Designation, or to the extent that Boyd Sub
deems it reasonably necessary to have all or any portion of the Property
re-zoned to the Resort Zone Designation in order to best utilize the Property to
construct the Facility, then the Venturers shall cooperate with each other to
use all commercially reasonable efforts to attempt to obtain such re- zoning of
the Property, with the cost thereof to be a Project Cost to be paid by the Joint
Venture.

        (c) The Venturers agree, solely for purposes of this Agreement, that as
of the date that MR Sub contributes the Property to the Joint Venture, MR Sub
shall receive credit for a capital contribution to the Joint Venture in the
amount of $90,000,000, a portion of which amount shall reflect the actual fair
market value of the Property, as determined at such time by an appraisal
obtained by Managing Venturer, and the remainder of which shall reflect the fair
market value of certain other tangible and intangible property contributed to
the Joint Venture by MR Sub, including but not limited to, the Special Revenue
Bonds.

        (d) Except as hereinafter provided, all costs and expenses associated
with the Environmental Assessment Reports and remediation of the Property, all
Road Development Costs, all real property transfer taxes or fees, and any other
costs and expenses of conveying the Property to the Joint Venture, including the
cost of obtaining the Survey and the cost of an ALTA owner's policy of title
insurance, shall be borne solely by MRI or MR Sub, as appropriate, and shall not
be costs or expenses of the Joint Venture. Real property taxes and assessments
relating to the Property shall be prorated as of the date of contribution of the
Property to the Joint Venture. MR Sub shall not be entitled to any increase in
its capital account or in its Interest in the Joint Venture by virtue of the
expenditure of any sums relating to the matters set forth in this Section
3.2(d). Notwithstanding the foregoing, costs and expenses associated with the
environmental remediation of the Property shall be borne by the Joint Venture as
Project Costs to the extent that (i) changes in the design or location of the
Facility from the design and location of the Facility as reflected in the
Building Elevation Plans, or (ii) changes in the location of the Employee
Parking Lot from the location agreed upon pursuant to the terms of Section
4.5(a) hereof, cause an actual increase in such costs and expenses to MRI or MR
Sub.

                                      -15-

<PAGE>   17

        Section 3.3   Additional Capital Contributions.

        (a) At the time of and as a condition concurrent to conveyance of the
Property to the Joint Venture by MR Sub pursuant to Section 3.2, Boyd Sub shall
make an additional capital contribution of cash aggregating $90,000,000 to the
Joint Venture. From time to time thereafter, each of the Venturers shall
concurrently make equal additional capital contributions of cash aggregating
$117,000,000 each to the Joint Venture at such time or times as required by the
provider of the Construction Financing or at the time or times as the Managing
Venturer reasonably determines necessary to coincide with the funding of Project
Costs; provided, however, that if acceptable to the provider of the Construction
Financing, each of the Venturers may provide all or part of such $117,000,000
cash contribution as subordinated loans, on such terms as the Venturers may
mutually determine, rather than as capital contributions. Notwithstanding the
foregoing, if acceptable to the provider of Construction Financing, each
Venturer shall be entitled to defer a portion of such $117,000,000 capital
contribution by providing the Joint Venture with a standby letter of credit in
the amount of $25,000,000 as security for its obligation to contribute such
amount. Any such letter of credit shall be on terms and conditions reasonably
acceptable to the Venturers and to the provider of the Construction Financing,
but in any event, each such letter of credit shall provide that the letter of
credit may be drawn if, but only if the respective Venturer shall fail to
contribute the capital contribution secured by such letter of credit at the time
required by either Managing Venturer or by the provider of Construction
Financing pursuant to the express terms of the Construction Financing.

        (b) The Parties acknowledge that as of the date of this Agreement, the
anticipated total Project Costs (including a reasonable contingency to be
established by Boyd Sub) are $1,035,000,000. Boyd Sub shall make additional
capital contributions of cash to the Joint Venture equal to the amount of
Project Costs that exceed, in the aggregate, the sum of $1,035,000,000, except
to the extent (i) such Project Costs are the sole obligation of either MRI or MR
Sub or any of their respective Affiliates pursuant to the terms hereof, (ii)
such Project Costs are permitted to be added to the amount of the Construction
Financing pursuant to the terms and provisions of Section 4.1 hereof, or (iii)
the Venturers mutually agree in writing to increase the size or scope of the
Facility and to share in the increase in the Project Cost relating to such
change in size or scope. The additional capital contributions referred to in the
immediately preceding sentence shall be made by Boyd Sub at such time or times
as required by the provider of the Construction Financing or at the time or
times as the Managing Venturer reasonably determines necessary to coincide with
the funding of Project Costs, but in no event prior to the contribution of the
Property to the Joint Venture by MR Sub.

        (c) MR Sub shall make additional capital contributions of cash to the
Joint Venture equal to the amount of any Excess Master Plan Improvement Costs,
except to the extent of Excess Master Plan Improvement Costs actually caused by
(i) changes in the design or location of the Facility from the design and
location of the Facility as reflected in the Building Elevation Plans, or (ii)
changes in the location of the Employee Parking Lot from the location agreed
upon pursuant to the terms of Section 4.5(a) hereof. The additional capital
contributions referred to in the immediately preceding sentence shall be made by
MR Sub at such time or times as required by the provider of the

                                      -16-

<PAGE>   18

Construction Financing or at the time or times as the Venturers reasonably
determine to be necessary to coincide with the funding of the Master Plan
Improvements.

        (d) In order to fund Project Costs incurred or to be incurred prior to
conveyance of the Property to the Joint Venture, each Venturer shall, within
five (5) business days following the request of the Managing Venturer, make one
or more additional equal capital contributions of cash to the Joint Venture in
amounts sufficient to fund outstanding or anticipated Project Costs, as
reasonably determined by Managing Venturer, which contributions (including such
contributions previously made by the Venturers) shall be credited against each
Venturer's cash capital contribution obligations due under the second sentence
of Section 3.3(a) hereof. In connection with each such request for capital
contributions, Managing Venturer agrees to provide each Venturer with quarterly
projected cash requirements for the next succeeding quarter, which shall contain
Managing Venturer's best estimate of the upcoming capital needs of the Joint
Venture for such time period.

        (e) MR Sub shall contribute to the Joint Venture 25% of the aggregate
principal amount of each series of Special Revenue Bonds as and when such
Special Revenue Bonds are issued by SJTA to MRI or an Affiliate of MRI, but in
no event prior to the contribution of the Property to the Joint Venture,
provided that the total principal amount of such Special Revenue Bonds so
contributed shall not exceed, in the aggregate, $13,750,000. All payments of
principal and interest in respect of the Special Revenue Bonds owned by the
Joint Venture shall accrue to and be the property of the Joint Venture. At the
time of the initial contribution of Special Revenue Bonds to the Joint Venture,
and as a condition thereto, the Joint Venture shall execute and deliver, and
agree to perform its obligations under, all agreements and instruments,
including without limitation a Donation Agreement with CRDA in substantially the
form of the Donation Agreement dated October 10, 1997 between CRDA and MR Sub,
necessary to permit the Joint Venture to obtain a credit against its future CRDA
alternative investment tax obligations to the maximum extent permitted by law.
The contribution of the Special Revenue Bonds by MR Sub to the Joint Venture
shall not increase the capital account or Interest of MR Sub in the Joint
Venture.

        Section 3.4   Acquisition and Development of Additional Property.

        (a) Subject to the terms and conditions of this Agreement, MR Sub or its
Affiliates may, alone or as a partner, joint venturer, stockholder or associate
of or with one or more other persons or entities, (i) develop and operate the
MRI Casino Project on such terms and conditions as it may determine, and (ii)
acquire, develop and operate additional property adjacent to the Property or the
Parcel on such terms and conditions as it may determine it its sole discretion,
and neither the Joint Venture nor Boyd Sub shall have any rights with respect
thereto except such as may be agreed to by each of the Venturers.

        (b) Without the consent of MR Sub, which it may withhold or condition in
its sole discretion, neither Boyd Sub nor its Affiliates, alone or as a partner,
joint venturer, stockholder (except for ownership of up to 5% of the stock of
any publicly traded company) or associate of or with other persons or entities,
may acquire or possess an interest in any other gaming property,

                                             -17-

<PAGE>   19

gaming development project or gaming business located within the Marina area of
the City at any time during the term of this Agreement or within three years
following the termination of this Agreement as a result of the occurrence of an
Event of Default by Boyd Sub. Without the consent of MR Sub, which it may
withhold or condition in its sole discretion, neither Boyd Sub nor its
Affiliates, alone or as a partner, joint venturer, stockholder (except for
ownership of up to 5% of the stock of any publicly traded company) or associate
of or with other persons or entities, may acquire or possess an interest in any
project involving the construction and development of a new resort/casino
project located within the entire City during the three-year period commencing
on the date of this Agreement; provided, however, that the foregoing shall not
preclude Boyd Sub or its Affiliates from effecting any merger with or
acquisition of another entity that owns all or any interest in any existing
gaming facility in the City (other than in the Marina area of the City) during
such three-year period. Notwithstanding the foregoing, the restrictions
contained in this Section 3.4(b) shall cease and be of no further force and
effect in the event that (A) MRI or MR Sub shall default under any material
obligation under this Agreement, or (B) this Agreement shall terminate or be
terminated without any uncured Event of Default on the part of Boyd Sub.

        (c) With the consent of each Venturer, the Joint Venture may acquire
additional property beneficial to the Joint Venture in the vicinity of the
Property. The purchase price and other terms of any such acquisition shall be
subject to the approval of each Venturer. Unless the Venturers agree otherwise,
the acquisition cost of any such additional property shall be funded by equal
additional capital contributions by each of the Venturers on or prior to the
acquisition date, which shall not affect the respective obligations of the
Venturers to make additional capital contributions to the Joint Venture pursuant
to Section 3.3. If any such additional property is acquired by the Joint Venture
and the Joint Venture is thereafter dissolved and liquidated, MR Sub shall have
the option, exercisable for a period of 90 days following liquidation of the
Joint Venture, to purchase any or all of such additional property for cash at a
purchase price equal to the Joint Venture's acquisition cost of such additional
property, plus all other capitalized costs and expenses incurred by the Joint
Venture in connection with such additional property. Notwithstanding the
foregoing, MR Sub hereby expressly consents to the acquisition of the Option
Parcel upon the terms and provisions of Section 4.5(c) hereof and of the Option
Agreement.

        Section 3.5   Failure to Make Capital Contributions.

        (a) If a Venturer defaults in its obligation to make capital
contributions required by this Article 3, the other Venturer shall have and may
exercise all remedies available pursuant to this Agreement, at law or in equity.
In addition, if a Venturer defaults in its obligation to make capital
contributions in cash required by this Article 3, the other Venturer may, but
shall not be required to, contribute to the Joint Venture all or a portion of
such amount. If such other Venturer contributes any amount to the Joint Venture
pursuant to this Section 3.5, immediately following such contribution the
Interest of the contributing Venturer in the Joint Venture shall be increased
and the Interest of the Defaulting Venturer in the Joint Venture shall be
decreased. The resulting Interest of the contributing Venturer shall be the
number of percentage points (rounded to the nearest one-hundredth of a
percentage point) determined in accordance with the following formula:

                                      -18-

<PAGE>   20

(i) determine the percentage equivalent of a fraction, the numerator of which
shall be the aggregate capital contributions made to the Joint Venture by the
contributing Venturer pursuant to this Agreement (excluding capital
contributions made by Boyd Sub pursuant to Section 3.3(b) and by MR Sub pursuant
to Section 3.3(c) or Section 3.3(e)), and the denominator of which shall be the
aggregate capital contributions made to the Joint Venture by all Venturers
pursuant to this Agreement (excluding capital contributions made by Boyd Sub
pursuant to Section 3.3(b) and by MR Sub pursuant to Section 3.3(c) or Section
3.3(e)), (ii) subtract 50 percentage points, (iii) multiply the result of (i)
and (ii) by the Applicable Ratio (rounded to the nearest one-hundredth of a
percentage point) and (iv) add 50 percentage points to the result of (i), (ii)
and (iii). For purposes of the immediately preceding sentence, the value of the
Property contributed by MR Sub pursuant to Section 3.2 hereof shall at all times
be deemed to be equal to $90,000,000. The resulting Interest of the Defaulting
Venturer shall be the number of percentage points equal to 100 minus the
resulting Interest of the contributing Venturer as determined above.

        (b) As used in this Section 3.5: (i) to the extent that the cash
contributed by the contributing Venturer pursuant to this Section 3.5 in
response to such default, together with all cash previously contributed by the
contributing Venturer pursuant to this Section 3.5 in response to prior defaults
(collectively, the "Cumulative Excess Contributions"), is less than $30,000,000,
the Applicable Ratio shall be 1.20; (ii) with respect to that portion of the
Cumulative Excess Contributions that is between $30,000,000 and $39,999,999, the
Applicable Ratio shall be 1.30; (iii) with respect to that portion of the
Cumulative Excess Contributions that is between $40,000,000 and $49,999,999, the
Applicable Ratio shall be 1.40; and (iv) with respect to that portion of the
Cumulative Excess Contributions that is $50,000,000 or more, the Applicable
Ratio shall be 1.50.

        (c) By way of illustration, assume that (i) MR Sub and Boyd Sub each has
a 50% Interest; (ii) MR Sub has previously contributed the Property pursuant to
Section 3.2 and $117,000,000 pursuant to Section 3.3(a), and Boyd Sub has
previously contributed a total of $207,000,000 pursuant to Section 3.3(a); and
(iii) Boyd Sub is required to contribute an additional $35,000,000 pursuant to
Section 3.3(b). If Boyd Sub fails to contribute such amount, and MR Sub elects
to contribute such $35,000,000 pursuant to this Section 3.5, the resulting
Interest of MR Sub following such contribution would be 54.72%, determined as
follows:

           $90,000,000 plus $117,000,000 plus $35,000,000 [MR Sub cash and
           Property contributions]

           $359,000,000 plus $90,000,000 [total cash and Property contributions]

equals 53.90%, minus 50% equals 3.90%, multiplied by 1.21 [the blended
Applicable Ratio applicable to $35,000,000] equals 4.72%, plus 50% equals
54.72%.

Accordingly, the resulting Interest of Boyd Sub would be 45.28%.

                                      -19-

<PAGE>   21

        Section 3.6 Interests. The respective percentage interest (the
"Interest") of the Venturers in the Joint Venture shall initially be as follows:

                      MR Sub - 50%
                      Boyd Sub- 50%

Any additional capital contributions made by Boyd Sub pursuant to Section 3.3(b)
hereof shall not increase the Interest of Boyd Sub. Any additional capital
contributions made by MR Sub pursuant to Section 3.3(c) hereof shall not
increase the Interest of MR Sub.

        Section 3.7 Loans by Venturers to the Joint Venture. If the Managing
Venturer reasonably determines that the Joint Venture's existing funds (giving
effect to funds available pursuant to existing third-party financing and amounts
required to be contributed to the Joint Venture by the Venturers pursuant to
Section 3.3) are insufficient to meet the Joint Venture's costs, expenses,
obligations and liabilities, the Managing Venturer may offer to each Venturer
the opportunity to advance funds to the Joint Venture in proportion to its
respective Interest. No Venturer shall be required to advance funds to the Joint
Venture, and neither Venturer shall be permitted to advance funds to the Joint
Venture without the approval of each Venturer. All amounts so advanced shall
take the form of an unsecured loan and shall bear interest at a floating rate
equal to the Joint Venture's weighted average cost of borrowed funds (or, if the
Joint Venture then has no borrowed funds, the published prime rate charged from
time to time by Bank of America NT & SA). Such loans shall be repayable on
demand but solely out of assets of the Joint Venture, in accordance with the
provisions of Section 6.2(a) and Article 13 hereof, and no Venturer shall have
any personal liability on account thereof, nor shall there be any recourse to
such Venturer's assets. To the extent required by the terms of the Construction
Financing or such other third-party financing obtained by the Joint Venture,
repayment of such loans shall be subordinated to the prior repayment of the
Construction Financing or other third-party financing. The provisions of this
Section 3.7 are solely and exclusively for the benefit of the Venturers, may
only be enforced by the Venturers and shall not inure to the benefit of, or be
enforceable by, any third party, including without limitation any creditor of
the Joint Venture.

         Section 3.8 No Further Capital Contributions. The Venturers shall not
be required to contribute additional capital or lend any funds to the Joint
Venture, except as expressly provided in this Article 3.

         Section 3.9 Capital Accounts. Each Venturer shall have a single capital
account (the "Capital Account") that, except as otherwise expressly provided by
this Agreement, shall be (i) increased by (a) the sum of the cash and the fair
market value at the time of contribution of any property contributed by such
Venturer, (b) such Venturer's distributive share of Joint Venture Profits and
(c) the amount of any Joint Venture liabilities assumed by such Venturer or
secured by any Joint Venture property distributed to such Venturer and (ii)
decreased by (a) the sum of the cash and the fair market value of property
distributed to such Venturer, (b) such Venturer's distributive share of Joint
Venture Losses and (c) the amount of liabilities of such Venturer assumed by the
Joint Venture

                                      -20-

<PAGE>   22

or that are secured by property contributed by such Venturer to the Joint
Venture. No Venturer shall be entitled to receive or shall be paid interest on
its contributions to the capital of the Joint Venture or on its Capital Account
balance. This Section 3.9 is intended to comply with the requirements of
Treasury Regulation ss. 1.704-1(b) regarding the maintenance of capital accounts
and shall be interpreted and applied in a manner consistent with that provision.

        Section 3.10 Return of Capital. Except as specifically provided herein,
no Venturer may withdraw capital from the Joint Venture. To the extent any cash
which any Venturer is entitled to receive pursuant to any provision of this
Agreement would constitute a return of capital, each of the Venturers consents
to the withdrawal of such capital. If any capital is, or is to be, returned to a
Venturer, the Venturer shall not have the right to receive property other than
cash, except as otherwise expressly provided in this Agreement.

                                    ARTICLE 4

                           FINANCING, CONSTRUCTION AND
                           DEVELOPMENT-RELATED MATTERS

        Section 4.1 Construction Financing. The Managing Venturer, in
consultation and cooperation with the Non-Managing Venturer, shall use all
commercially reasonable efforts to obtain committed Construction Financing as
promptly as commercially reasonable in an amount up to $621,000,000 plus the
amount of additional indebtedness, if any, allowed or reasonably anticipated by
Managing Venturer to be allowed pursuant to the third sentence of this Section
4.1 on the most favorable terms available to the Joint Venture. The Managing
Venturer shall have the responsibility and authority for the negotiation,
structuring and documentation of the Construction Financing. Without the
approval of each Venturer, the outstanding principal amount of the Construction
Financing shall not exceed 60% of the total Project Costs; provided, however,
that (i) if the weighted average interest rate accrued on such indebtedness
during the period beginning on the day on which the first draw on such
indebtedness is made and ending on the day before the day on which the Facility
opens to the general public (the "Construction Period") exceeds 10.0% per annum,
the outstanding principal amount of Construction Financing may exceed 60% of the
total Project Costs and/or may be increased by an amount equal to 100% of the
difference between (A) the interest accrued on such indebtedness during the
Construction Period and (B) the interest which would have accrued on such
indebtedness during the Construction Period if such weighted average interest
rate had been 10.0% per annum; (ii) without double counting, the outstanding
principal amount of Construction Financing may exceed 60% of the total Project
Costs and/or may increased by the amount of Excess Government Improvement Costs,
if any; (iii) the outstanding principal amount of Construction Financing may
exceed 60% of the total Project Costs and/or may be increased by the actual
amount of the Joint Venture's costs of creating and implementing the Jobs and
Business Opportunities Program; and (iv) if acceptable to the provider of
Construction Financing, if the Joint Venturers defer a portion of their
respective capital contribution obligations by providing a standby letter of
credit pursuant to the terms of Section 3.3(a) hereof, and if the actual total
Project Costs are

                                      -21-

<PAGE>   23

less than $1,035,000,000, the outstanding principal amount of Construction
Financing may exceed 60% of the total Project Costs by the amount of capital
contributions so deferred. In any event, without the approval of each Venturer,
the aggregate principal amount of Construction Financing and all other Joint
Venture indebtedness outstanding at any time (other than Venturer subordinated
loans permitted by Section 3.3(a) hereof) shall not exceed the sum of
$621,000,000 plus the amount of additional indebtedness, if any, permitted by
the immediately preceding sentence. The interest rate and other material terms
of the Construction Financing and any other Joint Venture indebtedness shall be
subject to the approval of each Venturer, such approval not to be unreasonably
withheld or delayed. If nonrecourse debt financing is not available to the Joint
Venture on terms reasonably acceptable to the Venturers, the Venturers will
cooperate in good faith to agree on alternative construction financing and to
seek such alternative construction financing (and in such event such alternative
construction financing shall constitute "Construction Financing" as such term is
used in this Agreement). In no event shall the stockholder or other Affiliates
of MR Sub or Boyd Sub be required to guarantee or otherwise assume liability for
Construction Financing; provided, however, that Boyd agrees, if required by the
providers of Construction Financing, to guarantee to the providers of
Construction Financing that following Commencement of Construction of the
Facility, Boyd will complete the construction thereof, such guaranty to be in
form and substance reasonably satisfactory to Boyd and to the providers of
Construction Financing.

        Section 4.2   Design, Development and Construction.

        (a) MRI or its Affiliates shall have sole responsibility and authority
with respect to the Master Plan, and MRI agrees to use all commercially
reasonable efforts to attempt (or to cause its Affiliates to attempt) to obtain,
as expeditiously as possible, all required Master Plan Approvals for the Parcel
and the Property. MRI or its Affiliates, in consultation with Boyd Sub, shall
prepare and submit all applications for all necessary Master Plan Approvals and
shall thereafter prosecute such applications diligently to completion. MRI shall
keep Boyd Sub fully advised on a regular basis with respect to all aspects of
the Master Plan Approvals. Any material changes to the engineering, design
and/or composition of the Initial Master Plan Improvements shall be subject to
the reasonable approval of Boyd Sub. MRI and its Affiliates shall have
responsibility for and shall diligently complete or cause to be completed the
construction of all Master Plan Improvements and Government Improvements in such
a manner as to minimize any inconvenience in or disruption to the construction
or operation of the Facility upon the Property. MRI and its Affiliates shall
cause all Government Improvements and those components of the Initial Master
Plan Improvements more particularly described on Exhibit C-2 attached hereto and
incorporated herein by this reference to be completed on or before the date not
less than thirty (30) days before the scheduled opening of the Facility to the
public. The obligations of MRI or its Affiliates under this Section 4.2(a) shall
be expressly referenced in the Memorandum of Agreement to be recorded as more
particularly provided in Section 14.22 hereof.

        (b) Upon conveyance of the Property to the Joint Venture, the Joint
Venture shall become obligated to pay or reimburse MRI or its Affiliates for (i)
all Government Improvement Costs and all Master Plan Improvement Costs relating
to the Initial Master Plan Improvements (except to the

                                      -22-

<PAGE>   24

extent of any Excess Master Plan Improvement Costs which are the sole obligation
of MR Sub as more particularly provided in Section 3.3(c) hereof) which are for
the sole use or benefit of the Property; and (ii) its Allocable Share of all
Government Improvement Costs, and of all Master Plan Improvement Costs relating
to the Initial Master Plan Improvements (except to the extent of any Excess
Master Plan Improvement Costs, which shall be the sole obligation of MR Sub as
more particularly provided herein), which are partially for the use of or
partially benefit the Property, whether such costs are incurred prior to or
following conveyance of the Property to the Joint Venture. Following conveyance
of the Property to the Joint Venture, the Joint Venture shall also become
obligated to pay or reimburse MRI or its Affiliates for the Allocable Share of
all reasonable costs and expenses relating to the operation, maintenance, repair
and necessary replacements of all Government Improvements, and of the Initial
Master Plan Improvements, except to the extent of any costs of operation,
maintenance, repair or replacement that are required due to the negligence or
willful misconduct of MRI or its Affiliates or their respective employees,
agents or contractors, or to the extent the cost of such operation, maintenance,
repair or replacement is paid by any third party, including without limitation,
any insurance or bonding company or any other person or business entity.
Notwithstanding the foregoing, the Joint Venture shall not have any
responsibility for any Master Plan Improvement Costs or for any costs or
expenses relating to the operation or maintenance of any Master Plan
Improvements other than those relating to the Initial Master Plan Improvements
unless Boyd Sub agrees in writing to share in any such costs or expenses.

        (c) Except to the extent provided in Section 3.3(c) hereof, MR Sub shall
be responsible, at its sole cost and expense and not as an expense of the Joint
Venture, for any Excess Master Plan Improvement Costs. MR Sub shall pay such
amount as an additional capital contribution to the Joint Venture, as more
particularly provided in Section 3.3(c) hereof.

        (d) Except as provided in Section 4.2(a) hereof and in Sections 4.4 and
9.2 hereof, the Managing Venturer shall have the responsibility and authority
for supervising the design, development and construction of the Facility.
Managing Venturer shall (i) prepare or cause to be prepared all necessary
preliminary plans and architectural, engineering, design and construction
drawings and other construction documents for the Facility, (ii) arrange for the
Joint Venture to obtain a construction contract from a reputable and qualified
general contractor or a construction management agreement from a reputable and
qualified construction management firm, (iii) engage on behalf of the Joint
Venture other reputable and qualified contractors or subcontractors, architects,
engineers, designers and other professionals for the design, development and
construction of the Facility, and (iv) in consultation with MR Sub, prepare,
submit and prosecute diligently to completion, applications for all necessary
pre-construction permits and approvals for the Facility, including without
limitation a CAFRA permit. Managing Venturer shall prosecute construction of the
Facility in such a manner as to minimize any inconvenience in or disruption to
the construction or operation of the Initial Master Plan Improvements. Prior to
conveyance of the Property to the Joint Venture, MR Sub agrees to execute any
and all documents, instruments or consents necessary to enable the Managing
Venturer to apply for and obtain any such permits and approvals for the
Facility. The Managing Venturer shall keep the other Venturer fully advised on a
regular basis with respect to all aspects of the design, permitting, development
and construction of the Facility.

                                      -23-

<PAGE>   25

        (e) Without the consent of each Venturer, which consent shall not
unreasonably be withheld or delayed, Commencement of Construction of the
Facility shall not occur prior to the closing of the Construction Financing but
shall occur as promptly as practicable thereafter. If Commencement of
Construction of the Facility has not occurred by the first anniversary of the
earlier to occur of (i) the date of the Commencement of Construction of the MRI
Casino Project by MRI or its Affiliate, provided that such construction shall at
all times thereafter proceed with diligence and in a timely manner, or (ii) the
date the Property is contributed to the Joint Venture in accordance with and
satisfaction of all of the terms and conditions of this Agreement; subject, in
both cases, to any delays in the Commencement of Construction of the Facility
attributable to factors beyond Boyd Sub's reasonable control, including, without
limitation, any delays by MRI or MR Sub in obtaining the Master Plan Approvals,
any delays in the Joint Venture's obtaining any and all required consents,
permits, licenses and approvals necessary to construct the Facility (which
delays are not caused by any fault on the part of Boyd Sub), or the inability of
the Joint Venture to obtain Construction Financing upon the terms and conditions
provided in Section 4.1 hereof (but which factors shall not include any lack of
financial resources that prevents Boyd Sub from contributing any amount required
by Section 3.3 hereof), for all of which delays the foregoing time period shall
be automatically extended for a period of time equal to the corresponding delay,
either Venturer may, by written notice to the other Venturer delivered within 60
days after such date, elect to dissolve the Joint Venture as provided in Article
13 hereof. In the event of a dissolution of the Joint Venture pursuant to the
terms and conditions of this Section 4.2(e), which dissolution is not subject to
any dispute between the Venturers (or which dissolution, in the event of such
dispute, is finally determined by a judicial tribunal to have been authorized
pursuant to the express terms and conditions of this Section 4.2(e)), Boyd shall
pay MR Sub, from Boyd's funds and not from the assets of the Joint Venture, a
termination fee of $2,000,000.

        (f) Boyd Sub shall diligently cause to be completed the construction of
the Facility in accordance with the Program, as the same may be modified
pursuant to the terms hereof, and shall cause the Facility to open to the public
as expeditiously as possible. The Venturers acknowledge that the Tri-Party
Agreement establishes a deadline for the completion of construction of the
Facility. Subject to a Force Majeure Event, Boyd Sub agrees to cause the
Facility to be completed on or before the date forty-one (41) months following
the Commencement of Construction of the Facility. The Venturers agree to
document the date of the actual Commencement of Construction of the Facility, in
writing, for purposes of this Section 4.2(f). The foregoing completion date
shall be subject to extension for delays caused by force majeure, which shall
include an act of God, sabotage, strike, labor dispute, lock-out or other
industrial disturbance not caused by any act or omission of Boyd Sub, act of the
public enemy, war, blockade, riots, lightening, fire, flood, explosion, order or
acts of military or civil authority, failure to timely receive necessary
governmental approvals, so long as such an event is not caused by an act or
omission of Boyd Sub, and any other cause, whether of the kind specifically
enumerated above or otherwise, which is not reasonably within the control of
Boyd Sub (a "Force Majeure Event"). In the event MR Sub shall elect to become
Managing Venturer pursuant to Section 9.3(a)(vi) as a result of Boyd Sub's
failure to complete construction of the Facility in the time specified in this
Section 4.2(f), MR Sub shall use all reasonable efforts to complete the
construction of the Facility on or before the deadline specified in the
Tri-Party

                                      -24-

<PAGE>   26

Agreement. In addition, upon any such election by MR Sub, Boyd Sub and MR Sub
shall promptly determine, using reasonable, good faith best efforts, the
anticipated cost to complete the construction of the Facility, and MR Sub shall
be responsible for any and all Project Costs that exceed such estimated amount.

        (g) MRI shall have the responsibility and authority to negotiate a
project agreement with the South Jersey Building and Construction Trades Council
on behalf of all developers within the Parcel. Such negotiation shall be
conducted by a committee chaired by a representative of MR Sub and on which Boyd
Sub shall be represented by its most senior in-house construction official.

        Section 4.3   Governmental Approvals.

        (a) In addition to using all commercially reasonable efforts in order to
obtain all Master Plan Approvals, as more particularly provided in Section
4.2(a) hereof, MR Sub shall have the responsibility and authority, at its sole
cost and expense and not as an expense of the Joint Venture except as
hereinafter provided, for preparing and filing all documents, instruments and
applications necessary to obtain all permits or approvals of all governmental
and quasi-governmental agencies required in order to contribute the Property to
the Joint Venture. Notwithstanding the foregoing, costs and expenses associated
with obtaining governmental approvals shall be borne by the Joint Venture as
Project Costs to the extent that (i) changes in the design or location of the
Facility from the design and location of the Facility as reflected in the
Building Elevation Plans, or (ii) changes in the location of the Employee
Parking Lot from the location agreed upon pursuant to the terms of Section
4.5(a) hereof, cause an actual increase in such costs and expenses.

        (b) MRI and MR Sub, in consultation with Boyd Sub, shall prepare and
submit all applications for the permits and approvals required pursuant to
Section 4.3(a) hereof and shall thereafter prosecute such applications
diligently to completion. With regard to all Master Plan Approvals or other
governmental permits and approvals required to be obtained pursuant to Section
4.3(a) hereof, MRI and MR Sub agree that they will, and will cause their
respective consultants and contractors, to (i) keep Boyd Sub informed on a
regular and timely basis as to the status of any and all such approvals and
permits which have not been received prior to the date hereof or which may
require modification or amendment, as permitted hereby, (ii) cooperate with Boyd
Sub and give due consideration to any recommendations and/or proposals made by
Boyd Sub with regard thereto, and (iii) otherwise not take or permit to be taken
any actions which might materially adversely affect the use and development of
the Property and the Facility.

        (c) The Managing Venturer shall have the responsibility and authority
for preparing, filing and processing all applications to obtain all governmental
licenses, approvals, permits and entitlements on behalf of the Joint Venture
necessary or appropriate for the design, development, construction, ownership
and operation of the Facility, including without limitation a CAFRA permit,
building permits and licenses and approvals issued by the New Jersey Gaming
Authorities, but excluding all Master Plan Approvals or other governmental
approvals that are expressly set forth herein as the obligation of MRI or MR
Sub.

                                      -25-

<PAGE>   27

        (d) The costs of preparing, filing and processing applications to obtain
licenses and approvals from the New Jersey Gaming Authorities, including without
limitation, investigation costs, shall be borne by the Venturer who (or whose
Affiliates) requires such licenses and approvals and shall not be an expense of
the Joint Venture. The Venturers shall at all times cooperate with each other
and furnish all documents and other information necessary in order to obtain
such licenses, approvals, permits and entitlements. Notwithstanding the
foregoing, the costs of obtaining and maintaining a finding of suitability of
the Facility as an approved hotel and of obtaining and maintaining a valid
operation certificate for the Facility from the New Jersey Gaming Authorities
pursuant to Sections 83, 84e and 96, respectively, of the New Jersey Casino
Control Act, shall be an obligation of the Joint Venture.

        (e) MRI and MR Sub and their respective Affiliates shall not enter into
any amendments to the Development Agreement, the Road Development Agreement or
any other agreement with any third party or governmental entity that would
materially adversely affect the development of the Property by the Joint Venture
without obtaining the prior written consent of Boyd Sub thereto, which consent
shall not unreasonably be withheld or delayed by Boyd Sub. If the Managing
Venturer determines that any amendments or modifications to the Development
Agreement or Road Development Agreement are reasonably necessary or advisable to
accommodate the development of the Facility, MRI and MR Sub agree that they will
take such steps as are reasonably necessary or advisable to attempt to obtain
such amendments or modifications, provided that such amendments or modifications
do not adversely affect the interests of MRI or MR Sub.

        (f) MRI and MR Sub hereby represent and warrant to the Joint Venture
that MRI and MR Sub have met all of their respective funding obligations under
the Road Development Agreement by putting all required contributions into an
escrow account. MRI and MR Sub and their respective Affiliates agree (i) not to
default or take any action or fail to take any action that would cause or
constitute a default under the Road Development Agreement; (ii) not to terminate
the Road Development Agreement (except in the event of a default thereunder by
any other party thereto; provided, however, that prior to any termination as a
result of any such default, MRI and MR Sub shall diligently pursue any and all
other rights and remedies available at law or in equity including but not
limited to specific performance of the Road Development Agreement);and (iii) to
guarantee that they will continue to approve all appropriate funding requests
for payments to be made pursuant to the terms of the Road Development Agreement.

        Section 4.4   Environmental Matters.

        (a) MRI shall have sole responsibility and authority with respect to and
shall, at its sole cost and expense and not as an expense of the Joint Venture
(except as provided in Section 3.2(d) hereof), use all commercially reasonable
efforts to cause to be diligently completed, the environmental assessment and
remediation of the Parcel (including the Property, to the extent that such
assessment and remediation relates to the Facility as it exists at the time of
initial public opening and not to any future expansions thereof or additions
thereto). The environmental assessment and remediation of the Parcel and the
Property shall be conducted in accordance with a

                                      -26-

<PAGE>   28

remediation plan approved by all applicable federal, state and local agencies.
MRI shall also be responsible, at its sole cost and expense and not as an
expense of the Joint Venture, for satisfying all commercially reasonable
requirements of any provider or providers of the Construction Financing and of
any title insurance company that provides either an ALTA Owner's Policy or a
Lender's Policy of Title Insurance, relating to the environmental assessment or
remediation of the Parcel. Except for the foregoing costs and expenses, MRI have
no further liability to the Joint Venture or any Venturer with respect to or in
any way arising out of the environmental remediation of the Parcel and the
Property, and the Parties hereby release MRI and its Affiliates from and waive
any such liability, damages, costs and expenses.

        (b) MRI shall be entitled to receive and retain any credits or other
financial assistance which may be made available by the State of New Jersey or
any other governmental entity as a result of expenditures for environmental
assessment and remediation of the Parcel, including without limitation, pursuant
to the Municipal Landfill Site Closure, Remediation and Redevelopment Act, L.
1999, c. 124, as the same may be amended from time to time. The Joint Venture
shall report, and shall cause all of its contractors, consultants and lessees to
report, to MRI, on a monthly basis, all sales and other taxes collected which
form the basis of any such credits or other financial assistance. To the extent
that, pursuant to any applicable law or regulation, any such credits or other
financial assistance become payable to the Joint Venture, the Joint Venture
shall promptly remit the full amount thereof to MRI. The environmental
assessment and remediation of the Parcel shall be conducted by one or more
licensed professional firms selected by MRI, and MRI will assign to the Joint
Venture any and all assignable rights (including rights to indemnification)
which MRI has under its contract or contracts with such firms. Promptly upon
completion of such remediation (other than ongoing methane venting and other
ongoing monitoring or remediation systems), MRI shall use all commercially
reasonable efforts to have delivered to the Joint Venture (i) all Environmental
Assessment Reports, including without limitation, all closure reports issued by
all applicable governmental or quasi-governmental agencies and authorities,
confirming their final approval of completion of such remediation work (other
than any such ongoing ventilation and monitoring requirements) (the "Closure
Reports"), (ii) a "no further action" letter issued by the NJDEP, and (iii) a
covenant not to sue issued by the NJDEP, pursuant to which the NJDEP shall agree
to waive its rights to institute any and all civil suits and claims against the
Venturers or the Joint Venture pursuant to any applicable environmental laws or
regulations for cleanup and removal costs or natural resource damages concerning
contamination discharge at the Property prior to date that MR Sub conveys title
to the Property to the Joint Venture.

        (c) As and when requested by MRI, Boyd Sub shall furnish MRI as promptly
as practicable with current information concerning the proposed Facility,
including without limitation the footprint, storm drainage system, slab
elevations at the bottom floor relative to existing grade, utility lines, hard
scape areas and site grading, necessary for MRI's consultants to prepare all
permit applications and construction documents that may be required to secure
approval for MRI's contractor(s) to remediate the Property. Boyd Sub will fully
cooperate with MRI's consultants and contractors(s) to ensure that the
remediation of the Property can be accomplished in the most efficient and
cost-effective manner possible. Notwithstanding anything contained herein, MRI

                                      -27-

<PAGE>   29

acknowledges that portions of the remediation associated with the Facility (for
example, by way of illustration and not by way of limitation, the installation
of methane venting systems and the excavation of hazardous materials) can be
more efficiently accomplished by the Joint Venture's contractors as part of the
construction of the Facility. MRI agrees to cooperate, in good faith, with
Managing Venturer in determining which aspects of the remediation can be more
efficiently accomplished by the Joint Venture's contractors. Any of the Joint
Venture's contractors so selected to perform certain aspects of the
environmental remediation shall perform their work in accordance with the rules
and regulations of the NJDEP. If approved by MRI in its reasonable discretion,
the Joint Venture shall directly engage its contractors, pursuant to fixed-price
contracts approved by MRI, to perform those aspects of the remediation that MRI
and Managing Venturer so determine can be more efficiently accomplished by the
Joint Venture's contractors, and MRI shall, except as provided in Section
3.2(d), promptly reimburse the Joint Venture for the costs and expenses of such
contractors that are attributable to environmental remediation. All plans
relating to the Facility shall be consistent with the landfill closure and
remediation plan approved by the State of New Jersey.

        (d) The Joint Venture will maintain the methane venting and other
environmental remediation systems associated with the Facility in accordance
with all approved Closure Reports and all applicable laws, regulations and
procedures (and acknowledges that the Property will be subject to recorded deed
restrictions imposed by the NJDEP intended to ensure compliance with such
procedures) and will indemnify and hold harmless MRI and its Affiliates from and
against any and all damages, claims, liabilities and expenses resulting from the
Joint Venture's failure to do so.

        Section 4.5   Employee Parking; Option to Purchase Portion of Tract II.

        (a) MR Sub and its successors and assigns shall make available to the
Joint Venture, the portion of Tract II depicted on Exhibit G attached hereto and
incorporated herein by this reference for the Joint Venture to construct up to
one thousand four hundred (1,400) surface parking spaces for use by employees of
the Joint Venture and of its lessees (the "Employee Parking Lot"). MR Sub and
its successors and assigns shall lease the land for the Employee Parking Lot to
the Joint Venture pursuant to the Employee Parking Lease, which shall be a
ground lease in form and substance reasonably acceptable to MR Sub and Managing
Venturer, but which shall provide (i) that it shall be for a term of ninety-nine
(99) years, provided that MR Sub shall have the right to terminate the Employee
Parking Lease upon any uncured material breach thereof by the Joint Venture,
upon completion and opening of an employee parking structure upon the terms and
provisions of Section 4.5(b) hereof in which the Joint Venture is afforded a
minimum of 1,400 parking spaces, or upon any sale of Tract II in accordance with
the terms and provisions of Section 4.5(c) hereof; (ii) that commencing upon the
date that the Employee Parking Lot is completed and is available for use by the
Joint Venture, rent shall accrue at the rate of Thirty-Five Dollars ($35) per
space per month, with such amount increasing on the fifth anniversary of the
rent commencement date and every five (5) years thereafter, based upon increases
in the United States Department of Labor, Bureau of Labor Statistics Consumer
Price Index for All Urban Consumers, United States Average, Subgroup "All Items"
(1982-84 = 100) during such five (5)-year period; provided, however, that the
Joint Venture shall be entitled to a credit against such rent equal to the
amount of all hard and soft costs and

                                      -28-

<PAGE>   30

expenses of designing, permitting, engineering, developing, constructing,
equipping and opening the Employee Parking Lot, and the Joint Venture shall not
have to pay any rent to MR Sub under the Employee Parking Lease until such time
as the Joint Venture has fully utilized such rent credit; (iii) that MRI, MR Sub
and their Affiliates and successors and assigns shall provide the Joint Venture
with unimpeded access (except temporarily during times of emergency or required
repairs) to the Employee Parking Lot at all times during the term of the
Employee Parking Lease; (iv) that the Joint Venture shall maintain the Employee
Parking Lot and shall be responsible for all liability insurance thereon and for
the cost of all utilities relating thereto; (v) that the Joint Venture shall be
responsible for any and all hard and soft costs and expenses of designing,
permitting, engineering, developing, constructing, equipping and opening the
Employee Parking Lot; (vi) that the design of the Employee Parking Lot shall be
subject to the prior approval of MR Sub and its successors and assigns, which
approval shall not unreasonably be withheld or delayed; (vii) that MR Sub shall
have the right, in connection with the construction of any employee parking
structure upon Tract II, to relocate the Employee Parking Lot upon no less than
one hundred-eighty (180) days' prior written notice to the Joint Venture,
provided that (a) the amount of all hard and soft costs and expenses of
designing, permitting, engineering, developing, constructing, equipping and
opening any such relocated Employee Parking Lot incurred pursuant to a budget
that shall be agreed upon between Boyd Sub and MR Sub, in their reasonable
discretion, on or before the construction of the relocated Employee Parking Lot,
shall be paid by the Joint Venture and shall be included in the computation of
the cost of the employee parking structure pursuant to Section 4.5(b) hereof;
(b) the Joint Venture shall receive a credit for the foregoing costs and
expenses as more particularly provided in Section 4.5(b) hereof; and (c) all
such costs and expenses shall not be deemed to be Project Costs for purposes of
Section 3.3(b) hereof; (viii) that the Joint Venture shall not be responsible
for any environmental remediation costs associated with the Employee Parking Lot
except to the extent of conditions caused by the Joint Venture or its agents,
employees or contractors; and (ix) MR Sub shall be solely responsible for all
real property taxes and assessments relating to the Employee Parking Lot.

        (b) MR Sub or its Affiliates may, but shall not be required to,
construct an employee parking structure on a portion of Tract II contiguous to
the Property. In such event, subject to the terms of Section 4.5(c) hereof, MR
Sub shall provide a minimum of 1,400 spaces in such parking structure to the
Joint Venture pursuant to either a joint ownership structure or pursuant to a
99-year lease, either of which shall be in form and substance satisfactory to
Boyd Sub and MR Sub, in their reasonable discretion. In any event, such
ownership or lease arrangement shall provide that the Joint Venture (i) shall
pay its pro rata share of all hard and soft costs and expenses of designing,
permitting, engineering, developing, constructing, equipping, opening and
operating such employee parking structure, including but not limited to property
taxes, utilities and insurance, and (ii) shall be entitled to a credit against
the foregoing costs equal to (x) the amount of all hard and soft costs and
expenses of designing, permitting, engineering, developing, constructing,
equipping and opening any such relocated Employee Parking Lot, and (y) any and
all incremental operating costs incurred by the Joint Venture during such time
as the Employee Parking Lot shall cease to be contiguous to the Property,
including but not limited to all costs of employee shuttle buses necessitated
thereby, as reasonably determined by Managing Venturer. The Joint Venture's pro
rata share of the foregoing

                                      -29-

<PAGE>   31

costs and expenses shall be determined based upon the number of employee parking
spaces to be utilized by the Joint Venture in comparison to the total number of
parking spaces contained in such parking structure. None of the costs and
expenses incurred by the Joint Venture pursuant to this Section 4.5(b) shall be
deemed to be Project Costs for purposes of Section 3.3(b) hereof.

        (c) In the event (i) MR Sub and Boyd Sub shall mutually determine that
they cannot, after reasonable good faith negotiations, agree upon the terms of a
lease or joint ownership arrangement for any employee parking structure to be
constructed in accordance with the terms of Section 4.5(b) hereof; (ii) MR Sub
or its Affiliates shall enter into a bona fide agreement with an independent
third party to sell any portion of Tract II that includes all or a substantial
portion of the Employee Parking Lot; or (iii) MR Sub or its Affiliates shall
elect to develop all or a substantial portion of the Employee Parking Lot for
other purposes associated with the development of the MRI Casino Project; then
MR Sub shall have the right to terminate the Employee Parking Lease effective on
the date fourteen (14) months following the date that MR Sub shall give written
notice to Managing Venturer of MR Sub's election to terminate the Employee
Parking Lease. In the event MR Sub shall give the Joint Venture any such
termination notice, the Joint Venture shall have an option (the "Option") to
purchase the portion of Tract II comprised of approximately 2.14 acres that is
depicted on Exhibit G attached hereto (the "Option Parcel") for construction of
an employee parking structure sufficient to contain no less than 1,400 parking
spaces. Promptly following conveyance of the Property to the Joint Venture, MR
Sub shall obtain a legal description of the Option Parcel sufficient for
recordation of a memorandum of option in the office of the County Clerk of the
County, and MR Sub agrees to execute and cause to be recorded a memorandum of
option, in form and substance reasonably satisfactory to Boyd Sub and MR Sub to
reflect the existence of the Option. Within sixty (60) days following the date
of execution of this Agreement, the parties agree to negotiate and execute a
formal option agreement (the "Option Agreement"), which Option Agreement shall
be in form and substance reasonably satisfactory to Boyd Sub and MR Sub, but
which shall provide (1) that the Option shall be exercisable by the Joint
Venture for a period of thirty (30) days following the Joint Venture's receipt
of written notice from MR Sub or its Affiliates that it intends to terminate the
Employee Parking Lease pursuant to the terms of this Section 4.5(c), (2) that
the purchase price to be paid by the Joint Venture for the Option Parcel shall
be equal to the fair market value of the Option Parcel, as determined by an
appraiser mutually acceptable to MR Sub and Boyd Sub at the time the Option is
exercised; (3) that the Option Parcel shall be delivered free and clear of all
liens and encumbrances other than any liens and encumbrances currently set forth
in the Transnation Title Insurance Company Title Commitment number 98-14779,
dated effective as of December 27, 1999 (except for Exception No. 23, relating
to the Reverter, which shall be modified pursuant to the Ordinance) and any
other non-monetary liens and encumbrances that do not materially adversely
interfere with the intended use of the Option Parcel; and (4) that the close of
escrow on the Option Parcel shall occur on the date thirty (30) days following
the Joint Venture's exercise of the Option. In the event the Joint Venture shall
exercise the Option, if requested by Managing Venturer, MR Sub shall negotiate,
in good faith, with the Joint Venture, to attempt to make available another
location on Tract II or other property then owned by MR Sub or its Affiliates in
the vicinity of Tract II, if any such property shall then be available in the
reasonable determination of MR Sub, in order to relocate all or a portion of the
Employee Parking Lot until the effective

                                      -30-

<PAGE>   32

termination date of the Employee Parking Lease. All costs and expenses
associated with any such relocation of the Employee Parking Lot shall be paid by
the Joint Venture. Notwithstanding anything contained in this Section 4.5(c), in
the event of any termination notice given pursuant to clause (ii) of this
Section 4.5(c), if Managing Venturer shall have elected not to exercise the
Option, and if MR Sub shall have failed to complete such third party sale for
any reason on or before the effective termination date of the Employee Parking
Lease, then the Employee Parking Lease shall not terminate pursuant to such
termination notice, and the Option shall be reinstated upon the same terms and
conditions as set forth in this Section 4.5(c) and in the Option Agreement. In
addition, in the event of any termination notice given pursuant to clause (iii)
of this Section 4.5(c), if Managing Venturer shall have elected not to exercise
the Option, and if MR Sub shall have failed to cause the Commencement of
Construction of the MRI Casino Project for any reason on or before the effective
termination date of the Employee Parking Lease, then notwithstanding any such
termination notice, the Employee Parking Lease shall continue, on a
month-to-month basis, until such time as MR Sub or its Affiliates shall cause
the Commencement of Construction of the MRI Casino Project to occur; provided,
however, if following any such termination notice, Managing Venturer shall have
elected not to exercise the Option, and if at any time before the effective
termination date of the Employee Parking Lease, MR Sub shall notify the Joint
Venture that it has elected not to construct the MRI Casino Project, then the
Employee Parking Lease shall not terminate pursuant to such termination notice,
and the Option shall be reinstated upon the same terms and conditions as set
forth in this Section 4.5(c) and in the Option Agreement. None of the costs and
expenses incurred by the Joint Venture pursuant to this Section 4.5(c) shall be
deemed to be Project Costs for purposes of Section 3.3(b) hereof.

        Section 4.6 Construction Staging and Parking. Upon the terms and
conditions set forth in this Section 4.6, MR Sub and its Affiliates shall make
available to the Joint Venture those portions of Tract II depicted on Exhibit H
attached hereto and incorporated herein by this reference for use in the staging
of construction of the Facility and for parking of construction vehicles and
equipment during the construction of the Facility. MR Sub shall have the right
to relocate the construction staging areas one (1) time, upon no less than one
hundred-twenty (120) days' advance notice to the Managing Venturer. The Joint
Venture shall not pay any rent for use of the construction staging areas, but
except as hereinafter provided, the Joint Venture shall be responsible, at its
sole cost and expense, for all costs relating to use of the construction staging
areas, including but not limited to all costs and expenses of permits and
approvals, grading the areas, setting up construction trailers on the site,
bringing temporary power and other necessary utilities to the site, and all
costs of restoring the sites to their existing condition upon completion of
construction of the Facility. Notwithstanding the foregoing, in no event shall
the Joint Venture be responsible for any environmental remediation costs
associated with the construction staging areas except to the extent of
conditions caused by the use of the construction staging areas by the Joint
Venture or its contractors. The Joint Venture shall also be responsible for all
utility charges associated with the use of the construction staging areas and
for all costs of insurance associated with the Joint Venture's use thereof. The
Joint Venture agrees to indemnify MR Sub and its Affiliates for, from and
against any and all claims, losses, damages and liabilities, including
reasonable attorneys' fees, which shall

                                      -31-

<PAGE>   33

be reimbursed as incurred, arising out of or relating to the use by the Joint
Venture of such construction staging areas.

        Section 4.7 Jobs and Business Opportunities Program. Upon execution of
this Agreement, and until such time as MRI or its Affiliates or any purchaser of
Tract II from MRI or its Affiliates first obtains a CAFRA permit for the MRI
Casino Project, the Joint Venture agrees to undertake the obligations of MRI and
its Affiliates contained in Section 9 of the Development Agreement, captioned
"Jobs and Business Opportunities Program." During such time, Managing Venturer
shall develop a Jobs and Business Opportunities Program and take such actions
relating thereto as shall be necessary, in the Managing Venturer's reasonable
discretion, to commence to satisfy such requirements and conditions. Without
limiting the foregoing, Managing Venturer shall commit the Joint Venture to
spend not less than Two Million Dollars ($2,000,000) to create and implement the
Jobs and Business Opportunities Program, all of which shall be deemed to be a
Project Cost, subject, however, to the terms and provisions of Sections
3.3(b)(ii) and 4.1 hereof.

        Section 4.8 CRDA Funds. The Joint Venture hereby agrees to authorize MRI
and its Affiliates to attempt to obtain the approval of CRDA to use the Joint
Venture's CRDA reinvestment obligation to reimburse MRI or its Affiliates for
its costs of constructing the improvements which may be made by MRI or its
Affiliates pursuant to Section 8.1.1 and pursuant to Exhibit M of the
Development Agreement, consisting primarily of the construction of improvements
to the existing bulkheading along one side of Penrose Canal, and the
construction of additional bulkhead improvements to the opposite side of Penrose
Canal and both sides of the Venice Canal area (collectively, the "Bulkhead
Project"). Specifically, the Joint Venture agrees to use the Joint Venture's
CRDA reinvestment obligation to make a direct investment to reimburse MRI or its
Affiliates for the construction of the foregoing improvements provided (1) that
the CRDA makes a determination that the Bulkhead Project is eligible to be
funded by the Joint Venture from investments designated for housing projects in
Atlantic City under N.J.S.A. 5:12-144.1.f, and (2) that either CRDA agrees to
act as general contractor therefor or MRI or its Affiliates shall be responsible
for directly contracting for such improvements. The Joint Venture agrees to
cooperate, at no cost or expense to the Joint Venture, with MRI and its
Affiliates, in attempting to obtain the foregoing approvals. Notwithstanding
anything contained herein, subject only to the right of reimbursement set forth
in this Section 4.8, MRI or its Affiliates shall be solely responsible for
funding any and all hard and soft costs and expenses of designing, permitting,
engineering, developing, constructing, equipping and opening the Bulkhead
Project regardless of whether or not the CRDA ultimately makes a determination
that the Bulkhead Project is eligible to be funded by the Joint Venture from
investments designated for housing projects in Atlantic City under N.J.S.A.
5:12-144.1.f. MRI agrees to indemnify the Joint Venture for, from and against
any and all costs, expenses, claims, losses, damages and liabilities, including
reasonable attorneys' fees, which shall be reimbursed as incurred, arising out
of or relating to the designing, permitting, engineering, developing,
constructing, equipping and opening the Bulkhead Project and relating to the use
by the Joint Venture of its CRDA funds for that purpose.

                                      -32-

<PAGE>   34

                                    ARTICLE 5

                        ALLOCATION OF PROFITS AND LOSSES

        Section 5.1 Profits and Losses. The terms "Profits" and "Losses" shall
mean, for each fiscal year, an amount equal to the Joint Venture's federal
taxable income or loss for such period determined in accordance with Section
703(a) of the Internal Revenue Code of 1986, as amended (the "Code"), but
disregarding Section 703(a)(1) of the Code, and with the following adjustments:

        (a)    income exempt from federal income tax shall be added to such
taxable income or loss;

        (b) expenditures not deductible in computing the Joint Venture's taxable
income and that are not properly chargeable as capital expenditures shall be
subtracted from such taxable income or loss;

        (c) in the event that the tax book value of any Joint Venture asset is
adjusted pursuant to Section 7.2(a) or (b) hereof, the amount of such adjustment
shall be taken into account as gain or loss from the disposition of such asset
in computing Profits and Losses;

        (d) gain or loss from any disposition of a Joint Venture asset with
respect to which gain or loss is recognized for federal income tax purposes
shall be computed by reference to the tax book value and not the adjusted
federal income tax basis of the asset disposed of; and

        (e) if the tax book value of a Joint Venture asset has been adjusted
pursuant to Section 7.2 hereof, in lieu of federal income tax depreciation, tax
book depreciation (which shall be in the same ratio to tax book value at the
beginning of the taxable period as federal income tax depreciation is to
adjusted federal income tax basis at the beginning of such period) shall be
taken into account in computing Profits and Losses.

        Section 5.2 Allocations. Profits or Losses, including without limitation
all items of income, gain, profit, loss, cost, expense, deduction or credit
earned or incurred by the Joint Venture, shall be allocated and credited to the
Venturers, and reflected in the Capital Accounts of the Venturers, in accordance
with each Venturer's Interest. Notwithstanding the foregoing, the following
items shall be specially allocated in the following manner:

        (a) Solely for the purpose of federal, state and local income taxes, and
without affecting or in any way being taken into account in computing a
Venturer's Capital Account or share of Profits, Losses or other items or
distributions pursuant to any provision of this Agreement:

               (i) items of income, gain, loss and deduction with respect to any
property contributed to the Joint Venture by any Venturer shall be allocated
among the Venturers in accordance with Section 704(c) of the Code so as to take
account of any variation between the

                                      -33-

<PAGE>   35

adjusted basis of the property to the Joint Venture and the fair market value of
the property (as determined by the Venturers) at the time of the contribution;
and

               (ii) in the event that the tax book value of a Joint Venture
asset is adjusted pursuant to Section 7.2(a) hereof, subsequent allocations of
income, gain, loss and deduction with respect to such asset shall take account
of any difference between the adjusted basis of such asset for federal income
tax purposes and its book value in the same manner as under Section 704(c) of
the Code.

         (b) To the extent the adjusted federal income tax basis of a Joint
Venture asset is adjusted pursuant to Section 734(b) or 743(b) of the Code, and
such adjustment is required by Treasury Regulation Section 1.704-1 (b)(2)(iv)(m)
to be taken into account in determining Capital Accounts, the amount of such
adjustment to the Capital Accounts shall be treated as an item of gain (if the
adjustment increases the basis of the asset) or loss (if the adjustment
decreases such basis), and such gain or loss shall be allocated to the Venturers
in a manner consistent with the manner in which their Capital Accounts are
required to be adjusted pursuant to such Treasury Regulation.

         (c) Except as provided in Treasury Regulation Section 1.704-2(f)(2),
(3) and (4) (pertaining to conversion or repayment of nonrecourse liabilities),
in the event there is a net decrease in partnership minimum gain (within the
meaning of Treasury Regulation Section 1 .704-2(d)) for a taxable year of the
Joint Venture, each Venturer must be allocated items of partnership income and
gain for that year equal to that Venturer's share of the net decrease in
partnership minimum gain (within the meaning of Treasury Regulation Section
1.704-2(g)(2)). Allocations made pursuant to this Section 5.2(c) shall consist
of gains recognized from the disposition of Joint Venture property subject to
one or more nonrecourse liabilities of the Joint Venture and then, if necessary,
shall consist of a pro rata portion of the Joint Venture's other items of income
and gain for that taxable year.

         (d) Items of loss or deductions attributable to a nonrecourse liability
to a Venturer incurred pursuant to Section 3.7 hereof or to a nonrecourse
liability with respect to which a Venturer bears the economic risk of loss
(within the meaning of Treasury Regulation Section 1.752-2) shall be allocated
to such Venturer.

         (e) If the additional capital contributions of Boyd Sub pursuant to the
first sentence of Section 3.3(a) hereof and pursuant to Section 3.3(b) hereof
exceed the fair market value of the sum of the Property and the other tangible
and intangible property referred to in Section 3.2(c) hereof at the time of the
conveyance of the Property to the Joint Venture as specified in Section 3.2(c)
hereof, upon liquidation of the Joint Venture in accordance with Article 13
hereof MR Sub shall be allocated items of income and gain, including gross
income if necessary, equal to the excess of such additional capital
contributions over such fair market value.

         (f) If MR Sub makes additional capital contributions pursuant to
Section 3.3(c) hereof, upon liquidation of the Joint Venture in accordance with
Article 13 hereof Boyd Sub shall be

                                      -34-

<PAGE>   36

allocated items of income and gain, including gross income if necessary, equal
to the amount of such additional capital contributions.

        Section 5.3 Transfers of Joint Venture Interests. If any Interest in the
Joint Venture is Transferred in accordance with Section 11.2(a) hereof, all
items of Profits or Losses, including without limitation all items of income,
gain, profit, loss, deduction, cost, expense or credit and all other items of
the Joint Venture with respect to the Interest so Transferred, shall be
allocated between the transferor and the transferee in accordance with Section
706 of the Code using such conventions as may be selected by the Venturers.

                                    ARTICLE 6

                          NON-LIQUIDATING DISTRIBUTIONS

        Section 6.1 Distributable Cash. The term "Distributable Cash" with
respect to any period shall mean an amount equal to the total cash revenues and
receipts of the Joint Venture from any source (including capital contributions,
loans and refinances) for such period, less the sum of (i) all operating
expenses paid or incurred by the Joint Venture, including current principal and
interest payments on the Construction Financing and other Joint Venture
indebtedness, but excluding any distributions pursuant to Section 6.2, (ii) all
capital expenditures made by the Joint Venture and (iii) the amount of any
increase during such period in, or amounts established during such period for,
reasonable reserves for anticipated costs, expenses, liabilities and obligations
of the Joint Venture, working capital needs of the Joint Venture or other
appropriate Joint Venture purposes, as reasonably determined by the Managing
Venturer in consultation with the other Venturer.

        Section 6.2 Distribution of Distributable Cash. Subject to any covenants
contained in the documentation governing the Construction Financing or any other
agreements to which the Joint Venture is a party, commencing with the first full
fiscal quarter following the fiscal quarter during which the Facility opens to
the public, Distributable Cash for each fiscal quarter shall be distributed
within 45 days after the end of such quarter in the following order of priority:

        (a) first, to the Venturers to repay amounts, if any, lent by them to
the Joint Venture pursuant to Section 3.7 hereof, any such payments to be made
on a pro rata basis according to the then outstanding balances of such loans,
with such payments applied first against accrued interest; and

        (b)    the balance, if any, to the Venturers, pro rata in accordance
with their respective Interests.

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<PAGE>   37

                                    ARTICLE 7

           ACCOUNTING AND RECORDS; CAPITAL RESERVE AND CAPITAL BUDGETS

        Section 7.1 Books and Records. The Joint Venture shall keep at its
principal office separate books of account for the Joint Venture which shall
show a true and accurate record of all costs and expenses incurred, all charges
made, all credits made and received and all income derived in connection with
the operation of the Joint Venture business in accordance with generally
accepted accounting principles consistently applied.

        Each Venturer shall, at its sole expense, have the right, at any time
without notice to the other, to examine, copy and audit the Joint Venture's
books and records during normal business hours.

        Section 7.2 Tax Book Values. The tax book value of any Joint Venture
asset shall be such asset's adjusted basis for federal income tax purposes,
except as follows:

        (a) The tax book value of Joint Venture assets shall be adjusted to
equal their respective gross fair market values, as determined by the Venturers,
as of the following times:

               (i) upon the acquisition of an additional Interest in the Joint
Venture by any new or existing Venturer in exchange for more than a de minimis
capital contribution; and

               (ii) upon the liquidation of the Joint Venture within the meaning
of Treasury Regulation Section 1.704-1 (b)(2)(ii)(g).

        (b) The tax book value of a Joint Venture asset that is distributed to
any Venturer shall be the fair market value of such asset at the time of
distribution, as determined by the Venturers.

        (c) The tax book value of Joint Venture assets shall be increased (or
decreased) to reflect any adjustments to the adjusted basis of such assets
pursuant to Section 734(b) or 743(b) of the Code, but only to the extent such
adjustments are taken into account in determining Capital Accounts pursuant to
Treasury Regulation Section 1.704-l (b)(2)(iv)(m).

        (d) If the tax book value of a Joint Venture asset has been adjusted
pursuant to this Section 7.2, such tax book value shall thereafter be adjusted
by the amount of tax book depreciation taken into account with respect to such
asset for the purpose of determining Profits and Losses.

        Section 7.3 Reports.

        (a) The Managing Venturer shall cause to be prepared and distributed to
each Venturer the following reports as promptly as practicable, but in any event
within 75 days after the end of each fiscal year of the Joint Venture:

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<PAGE>   38

               (i) a balance sheet as of the end of the fiscal year and
statements of income, Venturers' equity and cash flows for the year then ended,
each of which shall be audited by a firm of independent certified public
accountants (the "Accountants") selected by the Venturers in accordance with
Section 9.2(k) hereof;

               (ii) a general description of the activities of the Joint
Venture during the period covered by the report; and

               (iii) a report of any material contracts or transactions between
the Joint Venture and the Venturers or any of their Affiliates, including fees
or compensation paid by the Joint Venture and the products supplied and services
performed by the Venturers or any such Affiliate for such fees or compensation.

        (b) As promptly as practicable, but in any event within thirty (30) days
after the end of each of the first three quarters of each fiscal year, the
Managing Venturer shall cause to be prepared and distributed to each Venturer a
quarterly report containing a balance sheet and statement of income for the
period covered by the report, each of which may be unaudited but which shall be
certified by the chief financial officer of the Joint Venture as fairly
presenting the financial position and results of operations of the Joint Venture
during the period covered by the report and as having been prepared in
accordance with generally accepted accounting principles applied on a basis
substantially consistent with that of the Joint Venture's audited financial
statements. The report shall also contain a description of any material event
regarding the business of the Joint Venture during the period covered by the
report.

        (c) As promptly as practicable, but in any event within twenty-five (25)
days after the end of each calendar month, Managing Venturer shall cause to be
prepared and distributed to each Venturer an unaudited monthly income statement
for the monthly period covered thereby, together with substantially similar
supporting documentation and management information as is provided by each of
Boyd's other operating properties to Boyd's management.

        (d) As promptly as practicable, but in any event within ninety (90) days
after the end of each fiscal year, the Managing Venturer shall cause to be
prepared and distributed to each Venturer all information necessary for the
preparation of such Venturer's federal and state income tax returns, including a
statement showing such Venturer's share of income, gains, losses, deductions and
credits for such year for federal and state income tax purposes and the amount
of any distributions made to or for the account of such Venturer pursuant to
this Agreement.

        Section 7.4 Tax Returns. The Managing Venturer, at the expense of the
Joint Venture, shall prepare or cause the Accountants to prepare all income and
other tax returns, on an accrual basis, of the Joint Venture and cause the same
to be filed in a timely manner. The Managing Venturer shall furnish to each
Venturer a copy of each such return as soon as it has been filed, together with
any schedules or other information which each Venturer may require in connection
with such Venturer's own tax affairs. Each of the Venturers shall, in its
respective income tax return

                                      -37-

<PAGE>   39

and other statements filed with the Internal Revenue Service or other taxing
authority, report taxable income in accordance with the provisions of this
Agreement.

        Section 7.5 Tax Matters Partner. The Managing Venturer is hereby
designated as the "tax matters partner" of the Joint Venture as defined in
Section 6231 of the Code and, to the extent authorized or permitted under
applicable law, the Managing Venturer shall represent the Joint Venture in
connection with all examinations of Joint Venture affairs by taxing authorities,
including, without limitation, resulting administrative and judicial
proceedings.

        Section 7.6 Fiscal Year. The fiscal year of the Joint Venture shall be
the calendar year. As used in this Agreement, a fiscal year shall include any
partial fiscal year at the beginning or end of the term of the Joint Venture.

        Section 7.7 Bank Accounts. The Managing Venturer shall be responsible
for causing one or more accounts to be maintained in one or more banks, which
accounts shall be used for the payment of expenses incurred in connection with
the business of the Joint Venture, and in which shall be deposited any and all
cash receipts and for establishment of the Capital Expenditure Reserve Account.
Such accounts shall be maintained in a bank or banks in New Jersey to the extent
required by the New Jersey Casino Control Act. All such amounts shall be and
remain the property of the Joint Venture and shall be received, held and
disbursed by the Joint Venture for the purposes specified in this Agreement.
There shall not be deposited in any of such accounts any funds other than funds
belonging to the Joint Venture, and no other funds shall be commingled with such
funds.

        Section 7.8   Tax Elections.

        (a) At the request of any Venturer, the Managing Venturer, on behalf of
the Joint Venture, shall elect to adjust the basis of the assets of the Joint
Venture for federal income tax purposes in accordance with Section 754 of the
Code in the event of a distribution of Joint Venture property as described in
Section 734 of the Code or a transfer by any Venturer of its Interest in the
Joint Venture as described in Section 743 of the Code.

        (b) The Managing Venturer, on behalf of the Joint Venture, shall from
time to time make such other tax elections as it deems necessary or desirable to
carry out the business of the Joint Venture or the purposes of this Agreement.

        Section 7.9 Tax Withholding. Except as otherwise provided in this
Section 7.9, if the Joint Venture incurs an obligation to withhold taxes with
respect to any Venturer, any amount withheld or paid as withholding taxes by the
Joint Venture with respect to such Venturer shall be treated for all purposes of
this Agreement as if it had been distributed to such Venturer. The Venturers may
make such elections with respect to such withholding obligations, including
without limitation an election pursuant to Section 1446 of the Code, as they
reasonably determine. If the withholding obligation exceeds the amount that
would have been distributed to such Venturer determined without regard to the
provisions of this Section 7.9, such excess amount shall be treated

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<PAGE>   40

for all purposes of this Agreement as if it had been transferred to such
Venturer by the Joint Venture as an interest-free loan. If the Joint Venture
incurs any liability as a result of a failure to withhold with respect to any
Venturer, such liability will be borne by such Venturer and charged to such
Venturer's Capital Account. Amounts treated as loaned to any Venturer pursuant
to this Section 7.9 shall be repaid by such Venturer to the Joint Venture as
promptly as practicable. The Joint Venture shall offset such amounts against any
amounts that would otherwise be distributed to such Venturer.

        Section 7.10 Capital Expenditure Reserve Account. Upon opening of the
Facility, Managing Venturer shall create a reserve for capital expenditures (the
"Capital Expenditure Reserve Account") into which Managing Venturer shall pay
monthly amounts equal to five percent (5%) of the Joint Venture's earnings
before interest, depreciation and amortization accrued during the preceding
calendar month, as calculated by Managing Venturer pursuant to generally
accepted principles of accounting in the gaming industry. The Capital
Expenditure Reserve Account shall be used exclusively for the replacement of
capital equipment and for improvements to, renovations of or enhancements to the
Facility in accordance with Managing Venturer's business judgement, above and
beyond any capital expenditure items contained in the annual Capital Expenditure
Budget approved by the Venturers as set forth in Section 7.11 hereof. The funds
for the Capital Expenditures Reserve Account shall be deposited into a bank
account in accordance with the terms of Section 7.7 hereof. The signature of an
authorized representative of Managing Venturer shall be the only signature
required to make withdrawals (by check or otherwise) from such account, provided
that the monies withdrawn are to be used only for the purposes set forth herein.

        Section 7.11 Capital Expenditure Budget. Managing Venturer shall prepare
a capital expenditure budget (a "Capital Expenditure Budget") and submit such
Capital Expenditure Budget to the Non-Managing Venturer at least ninety (90)
days prior to the public opening of the Facility. Thereafter, Managing Venturer
shall prepare an annual Capital Expenditure Budget, which shall be submitted by
Managing Venturer to the Non-Managing Venturer no later than thirty (30) days
prior to the commencement of each fiscal year of the Joint Venture. Each Capital
Expenditure Budget prepared by Managing Venturer pursuant hereto shall be
subject to approval or disapproval by an authorized representative of the
Non-Managing Venturer within twenty (20) days of submission to the Non-Managing
Venturer for approval; provided, however, that such approval shall not
unreasonably be withheld. In the event an authorized representative of the
Non-Managing Venturer shall fail to approve or disapprove any Capital
Expenditure Budget, in writing, within the foregoing twenty (20)-day time
period, then such Capital Expenditure Budget shall be deemed to be approved by
the Non-Managing Venturer. In the event the Non-Managing Venturer reasonably
disapproves any item contained in any Capital Expenditure Budget, then the
Venturers agree to work, in good faith, to revise the Capital Expenditure Budget
as expeditiously as possible; provided, however, that any non-disputed items
contained in any such Capital Expenditure Budget shall be deemed to be approved.
Notwithstanding anything contained herein, the Venturers recognize that mutually
agreeable adjustments may be made to previously approved Capital Expenditure
Budgets from time to time during any fiscal year to reflect the impact of
unforeseen circumstances, financial constraints, or other events. Managing
Venturer agrees to keep the Non-Managing Venturer informed and to obtain the
Non-Managing Venturer's approval regarding any capital projects or capital
expenditures

                                      -39-

<PAGE>   41

that exceed any sums in the Capital Expenditure Reserve Account and that are
reasonably anticipated to cause a material change to any Capital Expenditure
Budget previously approved by the Non-Managing Venturer. Notwithstanding the
foregoing, nothing contained in this Section 7.11 shall be deemed to limit
Managing Venturer's ability to expend any funds contained in the Capital
Expenditure Reserve Account as provided in Section 7.10 hereof.

        Section 7.12 Ownership Ledger. The Joint Venture shall maintain a ledger
in its principal place of business in New Jersey which shall at all times
reflect the current ownership of Interests and shall be available for inspection
by the New Jersey Gaming Authorities and their authorized agents at all
reasonable times, without notice.

                                    ARTICLE 8

                     CONFIDENTIALITY; INTELLECTUAL PROPERTY

        Section 8.1 Confidential Treatment of Information. Each of the Venturers
agrees, and shall cause each of its Affiliates (i) not to disclose any material
information concerning the Joint Venture or its business to the press or the
general public without the approval of the other Venturer, such approval not to
be unreasonably withheld or delayed and (ii) to retain in strict confidence any
proprietary confidential information and trade secrets of the other Venturer,
whether disclosed prior to or after the date hereof, and not to use or disclose
to persons other than the Venturer or its Affiliates ("third parties"), and to
use its best efforts to cause its employees, agents and consultants not to use
or disclose to third parties, such proprietary confidential information or trade
secrets without the approval of the other Venturer, unless in either case it can
be established by the disclosing party that such information:

            (a) at the time of disclosure is part of the public domain and
readily accessible to the public or such third party;

            (b) at the time of disclosure is already known by the receiving
party otherwise than pursuant to a breach of an obligation of confidentiality;

            (c) is required by applicable law, regulation or court order to be
disclosed; or

            (d) is required by any vendor, supplier or consultant in order to
carry out the business of the Joint Venture, provided that the disclosing
Venturer shall obtain the written agreement and obligation of such third party,
in a form reasonably satisfactory to the other Venturer, prior to disclosing
such information, that all of the provisions of this Article 8 shall apply with
equal effect to such third party. The Joint Venture shall be a third-party
beneficiary of any such written agreement.

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<PAGE>   42

        Section 8.2 Intellectual Property. The Joint Venture, Boyd and Boyd Sub,
and their respective Affiliates, shall not have any right to use any trademark,
service mark, trade name, logo, copyright or other intellectual property owned
by MRI or MR Sub, or any of their respective Affiliates, in connection with the
Facility or the business of the Joint Venture. Except as expressly provided
herein, the Joint Venture, MRI and MR Sub, and their respective Affiliates,
shall not have the right to use any trademark, service mark, trade name, logo,
copyright or other intellectual property owned by Boyd or Boyd Sub, or any of
their respective Affiliates, in connection with the Facility or the business of
the Joint Venture. Notwithstanding the foregoing, Boyd will enter into a license
agreement (in form and substance reasonably satisfactory to Boyd) with the Joint
Venture providing for the use of such intellectual property owned by Boyd and to
be used in connection with the management or operation of the Facility (the
"Boyd License Agreement"), without compensation to Boyd, as long as Boyd Sub or
another Affiliate of Boyd shall be Managing Venturer. In the event that Boyd Sub
or another Affiliate of Boyd shall cease for any reason to be a Venturer or to
be the Managing Venturer, the Boyd License Agreement shall provide for a
reasonable transition period to enable the Joint Venture to replace Boyd's
intellectual property being used by the Joint Venture, without causing any
disruption in the operations of the Facility. The Managing Venturer, on behalf
and at the expense of the Joint Venture, shall prepare, file and prosecute all
applications which it reasonably deems necessary or appropriate to protect and
preserve any intellectual property rights acquired or developed by the Joint
Venture. Upon any liquidation of the Joint Venture, the Boyd License Agreement
shall terminate (if not previously terminated pursuant to the terms thereof),
and each Venturer shall be entitled to the full and complete right to use any
and all intellectual property owned or developed by the Joint Venture (other
than any intellectual property covered by the Boyd License Agreement, including
without limitation, any alterations or modifications of the intellectual
property covered thereby which may have been developed by the Joint Venture,
which items shall be the exclusive property of Boyd Sub or its Affiliates)
during the term hereof, including without limitation, any customer or marketing
databases developed by the Joint Venture.

                                    ARTICLE 9

                                   MANAGEMENT

        Section 9.1 Management by Managing Venturer. Subject to Section 9.3
hereof, Boyd Sub shall be and hereby is appointed the Managing Venturer of the
Joint Venture and shall serve in such capacity without fee or other
compensation. Except as otherwise provided in this Agreement, the Managing
Venturer shall have, and hereby assumes, sole responsibility and authority for
the prudent day-to-day management and operation of the Joint Venture and the
Facility, and in furtherance thereof may exercise the following specific rights
and powers without approval of the other Venturer:

        (a) oversee and manage the day-to-day operations of the Facility, the
Joint Venture business and such other activities as are customary in connection
with such operations;

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<PAGE>   43

        (b) except as otherwise provided in Sections 4.2, 4.4 and 9.2 hereof,
direct and oversee the architectural, engineering, design, construction,
administrative, legal and other work necessary for the design, development,
construction, completion, financing, opening, operation and improvement of the
Facility and other Joint Venture business;

        (c) prepare appropriate budgets, including but not limited to the
Capital Expenditure Budget, and prepare construction schedules for the
development, construction, opening, repair, improvement and operation of the
Facility and other Joint Venture property;

        (d) except as otherwise provided in Sections 4.2, 4.4 and 9.2 hereof,
negotiate with and enter into contracts for the design, development,
construction, completion, opening, operation and improvement of the Facility,
including but not limited to negotiating and entering into contracts and
easement agreements necessary for the central power plant to be constructed upon
or adjacent to the Property (which shall not include the right to construct such
power plant on Tract II), and negotiating and entering into contracts, leases or
agreements relating to the retail, restaurant and spa operations to be located
at the Facility, and to supervise all work relating to the foregoing;

        (e) implement decisions made by the Venturers;

        (f) use its best efforts to operate, on behalf of and for the sole
benefit of the Joint Venture, the Facility and such other business and
activities as are customary in connection with such operation;

        (g) preserve, maintain and distribute Joint Venture funds in accordance
with the provisions of this Agreement;

        (h) contract on behalf of the Joint Venture for the services of
independent contractors, including attorneys, accountants and financial
advisers;

        (i) establish, maintain and supervise the deposit of funds and
securities of the Joint Venture with federally insured banking institutions, and
the Managing Venturer is authorized to sign on behalf of the Joint Venture on
all accounts with such banking institutions;

        (j) acquire by purchase, lease or otherwise such personal property as
may be necessary, convenient or incidental to the accomplishment of the purposes
of the Joint Venture;

        (k) procure on behalf of the Joint Venture such general liability,
casualty, comprehensive, workers' compensation, fidelity, errors and omissions,
business interruption and other insurance as is adequate to protect the Joint
Venture;

        (l) execute on behalf of the Joint Venture any and all agreements,
documents, certificates and instruments necessary or convenient in connection
with the management and operation of the Facility or in connection with managing
the affairs of the Joint Venture; and

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<PAGE>   44

        (m) employ or retain, or enter into any transaction or contract with,
any Venturer or any officer, employee or Affiliate of any Venturer, upon the
terms and conditions provided in Section 2.4 hereof.

        Section 9.2 Exclusive Powers of the Venturers. In addition to those
matters which, pursuant to other provisions of this Agreement, require approval
of each Venturer, the following matters shall require the approval of each
Venturer:

        (a) except as otherwise provided in this Agreement, the admission of an
additional Venturer;

        (b) the acquisition of any real property in addition to the Property
(excluding, however, the leasing of the Employee Parking Lot and the Employee
Parking Structure and further excluding any acquisition of the Option Parcel
pursuant to the terms of Section 4.5(c) hereof and of the Option Agreement);

        (c) any transaction which is unrelated to the purposes of the Joint
Venture or makes it unlawful or impossible to carry out the purposes of the
Joint Venture;

        (d) except with respect to the Construction Financing or as otherwise
provided in this Agreement, the incurrence of any indebtedness, except for
liabilities which are normal and customary in the gaming business, including but
not limited to the incurrence of trade payables in the ordinary course of
business;

        (e) the refinancing or early retirement of any Joint Venture
indebtedness;

        (f) except in connection with the Construction Financing, the sale or
hypothecation of all or any significant part of the property or assets of the
Joint Venture, other than in the ordinary course of business, except for
subordination, non-disturbance and attornment agreements which may be necessary
in connection with the construction and operation of the central power plant or
the leasing of the retail, restaurant and spa operations at the Facility;

        (g) capital expenditures in excess of any funds contained in the Capital
Expenditure Reserve Account other than (i) any capital expenditures included in
a Capital Expenditure Budget prepared by the Managing Venturer and approved by
the Non-Managing Venturer as provided herein or (ii) any capital expenditures
that are Project Costs to be incurred in accordance with the terms hereof.

        (h) except as otherwise provided in Article 11 hereof, the Transfer of
all or any portion of a Venturer's Interest in the Joint Venture;

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<PAGE>   45

      (i) the compromise of any claim owned by or against the Joint Venture in
excess of $500,000 or submission to arbitration of any dispute or controversy
involving the Joint Venture, other than in the ordinary course of business;

      (j) the cancellation or lapse of any material insurance policy, which
approval shall not be unreasonably withheld or delayed;

      (k) the selection and retention of independent certified public
accountants to audit the Joint Venture's financial statements and prepare its
tax returns;

      (l) except as otherwise provided in Section 4.2 hereof, the design of the
exterior of the Facility (the current design of which, as reflected on Exhibit I
attached hereto and incorporated herein by this reference, has been approved by
MR Sub), including the design and location of all landscaping, lighting and
signage for the Facility;

      (m) commencing upon the opening of the MRI Casino Project (if but only if
the same shall be owned and operated by MRI or any of its Affiliates), the
establishment of hotel room rate structures for the Facility; provided, however,
in any event, Managing Venturer may change hotel room rates without the approval
of the Non-Managing Venturer until such time as the Non-Managing Venturer shall
have notified the Managing Venturer in writing that the Non-Managing Venturer's
approval shall thereafter be required;

      (n) any expenditure by the Joint Venture in excess of $50,000 other than
expenditures authorized pursuant to Sections 9.2(a)-(m) hereof or expenditures
in the ordinary course of business;

      (o) except as otherwise provided in this Agreement, the dissolution or
liquidation of the Joint Venture, or a merger, consolidation or recapitalization
involving the Joint Venture;

      (p) any change in the number of hotel rooms below 2,000 rooms, and any
change to any other element of the Program causing a decrease in any such
element of more than ten percent (10%) of the number for such element set forth
on Exhibit D attached hereto; and

      (q) the sale or other disposition of any Special Revenue Bonds owned by
the Joint Venture.

      Any matter which requires the approval of each Venturer may be approved by
an instrument signed by an authorized representative of each Venturer. The
current authorized representatives of Boyd Sub are William S. Boyd, Donald D.
Snyder, Robert L. Boughner and Ellis Landau, and the current authorized
representatives of MR Sub are J. Terrence Lanni, John T. Redmond, Robert H.
Baldwin and Gary N. Jacobs. Either Venturer may designate different or
additional authorized representatives by written notice to the other.

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<PAGE>   46

        Section 9.3   Replacement of Managing Venturer.

        (a) Except as otherwise provided in this Agreement, the Managing
Venturer may only be changed with the approval of each Venturer. In the event
that (i) the Joint Venture is in material default with respect to any of its
debt obligations, and such material default shall be continuing after notice of
such default is received by the Joint Venture and after one-half (1/2) of the
applicable cure period has expired, (ii) an Event of Default on the part of Boyd
Sub has occurred and is continuing under this Agreement, (iii) Boyd Sub or
another direct or indirect wholly owned subsidiary of Boyd ceases for any reason
(including a Permitted Transfer) to own at least a 50% Interest in the Joint
Venture; (iv) prior to the public opening of the Facility, none of William S.
Boyd, Donald D. Snyder, Robert L. Boughner, Ellis Landau or Keith E. Smith is
serving as Chief Operating Officer or a more senior executive officer of Boyd),
(v) prior to the end of the three-year period commencing upon the public opening
of the Facility, William S. Boyd, or his heirs or legatees collectively, cease
to own beneficially at least 15% of the outstanding common stock or to be the
largest beneficial stockholder of Boyd, or (vi) Boyd Sub shall fail to cause
completion of construction of the Facility on or before the time period
specified in Section 4.2(f), subject to any Force Majeure Event(s) specified
therein, MR Sub may, at any time during the continuation of any event specified
in (i) through (vi) above, elect by written notice delivered to Boyd Sub to
become the Managing Venturer, and MR Sub shall thereupon become the Managing
Venturer and Boyd Sub shall become the Non-Managing Venturer. In the event of
such election by MR Sub as a result of an event specified in clause (i), (ii) or
(iii) of this Section 9.3(a), subject to the last sentence of this Section
9.3(a), the Joint Venture shall pay MR Sub, on a quarterly basis, a management
fee equal to 3.5% of gross revenues (before deduction of promotional allowances)
of the Joint Venture. In the event of such election by MR Sub as a result of an
event specified in either clause (iv) or clause (vi) of this Section 9.3(a),
subject to the last sentence of this Section 9.3(a), the Joint Venture shall pay
MR Sub a one (1)-time fee equal to 3.5% of gross revenues (before deduction of
promotional allowances) earned by the Joint Venture during the one hundred
eighty (180) day period following the public opening of the Facility. In the
event MR Sub becomes the Managing Venturer pursuant to clause (v) of this
Section 9.3(a), no management fee shall be payable to MR Sub. Upon the
occurrence of any of the events specified in Section 13.1(h) hereof with respect
to the Managing Venturer, if the business of the Joint Venture is continued, the
remaining Venturer shall become the Managing Venturer. Notwithstanding anything
contained in this Section 9.3(a), any management fee payable to MR Sub pursuant
to this Section 9.3(a) shall be subordinated to the repayment of principal and
interest on the Construction Financing.

        (b) The Managing Venturer shall not have the right to resign as Managing
Venturer, and any such purported resignation shall constitute an Event of
Default under this Agreement which shall entitle the other Venturer to exercise
all rights and remedies available under this Agreement, at law or m equity.

        Section 9.4 Meetings of the Venturers: Time and Place. The Venturers
shall meet with each other on a periodic basis, at least quarterly. At such
meetings, the Managing Venturer's representatives shall report on the
performance and condition of the Joint Venture, give progress

                                      -45-

<PAGE>   47

reports on negotiation of the Construction Financing, the status of governmental
permits and approvals for the Facility, capital projects including construction
of the Facility, material contracts entered into, material litigation and other
matters material to the operation of the Joint Venture. Meetings shall be held
at such time and place within the County as the Managing Venturer shall
determine or by telephone, provided that each Venturer's representatives may
simultaneously participate and hear each other Venturer's representatives. The
Venturers may take action without a meeting if the action taken is reduced to
writing (either prior to or thereafter) and signed on behalf of each Venturer.
Any Venturer may call for a meeting of the Venturers at any time by giving at
least 48 hours' prior written notice to the other Venturer.

        Section 9.5 Officers. The Managing Venturer shall appoint the chief
executive officer, chief financial officer and other officers of the Joint
Venture, who shall serve at the direction and pleasure of the Managing Venturer.
Appointment and replacement of the chief executive officer (or equivalent
officer) of the Joint Venture shall require the approval of the Non-Managing
Venturer, which approval shall not be unreasonably withheld or delayed. The
officers shall perform those functions of the Managing Venturer and such other
duties and responsibilities as the Managing Venturer may assign to them. No
officer or employee of either Venturer or its Affiliates who does not devote
substantially full time to the Joint Venture shall receive any salary or other
compensation from the Joint Venture. The Managing Venturer may from time to time
appoint employees of the Managing Venturer or its Affiliates to devote
substantially full time to the Joint Venture and retain such employees on its
payroll. In such event, the Joint Venture shall reimburse the Managing Venturer
or its Affiliate for the out-of-pocket compensation (including salary, bonus and
the direct cost of health and retirement benefit plans) paid to such employee
for performing services to the Joint Venture on a full-time basis. The terms of
any benefits offered to such an employee shall be within the discretion of the
Managing Venturer or its Affiliate. Each officer of the Joint Venture shall be
indemnified by the Joint Venture from and against any and all claims, losses,
damages and liabilities, including reasonable attorneys' fees which shall be
reimbursed as incurred, arising out of or relating to any act or failure to act
performed or omitted by him; provided, however, that such indemnity shall be
payable only if such officer acted in good faith and in a manner he reasonably
believed to be in, or not opposed to, the best interests of the Joint Venture.
Any indemnity under this Section 9.5 shall be paid from, and shall be limited to
the extent of, Joint Venture assets, and no Venturer shall have any personal
liability on account thereof. Each officer of the Joint Venture shall be fully
protected with respect to any action or omission taken or omitted by him in good
faith if such action or omission is taken or omitted in reliance upon and in
accordance with the opinion or advice of competent legal counsel, accountants,
financial advisers or other professionals as to matters within their
professional competence.

                                      -46-

<PAGE>   48

                                   ARTICLE 10

                         REPRESENTATIONS AND WARRANTIES

        Section 10.1 MR Sub. MRI and MR Sub, as applicable, hereby represent and
warrant, which representations and warranties shall survive the execution of
this Agreement (and which representations and warranties shall be true and
accurate in all material respects at the time that MR Sub conveys the Property
to the Joint Venture pursuant to the terms hereof), that:

        (a) MR Sub is a corporation duly organized, validly existing and in good
standing under the laws of the State of New Jersey and has the requisite
corporate power and authority to enter into and carry out the terms of this
Agreement;

        (b) all of the outstanding capital stock of MR Sub is owned directly or
indirectly by MRI;

        (c) all corporate action required to be taken by MR Sub to enter into
and carry out the terms of this Agreement has been taken and, except as
otherwise provided or contemplated in this Agreement, no further approval of any
governmental agency, court or other body is necessary in order to permit MR Sub
to enter into and carry out the terms of this Agreement;

        (d) this Agreement has been duly executed and delivered by MR Sub and
constitutes the legal, valid and binding obligation of MR Sub, enforceable in
accordance with its terms (subject to applicable bankruptcy, insolvency,
moratorium or similar laws affecting creditors' rights generally, equitable
principles and judicial discretion);

        (e) to the best of its knowledge, neither the execution and delivery of
this Agreement, nor the performance of its obligations hereunder, has resulted
or will result in any violation of, or default under, the charter or bylaws of
MR Sub or any indenture, trust agreement, mortgage or other agreement or any
permit, judgment, decree or order to which MR Sub is a party or by which it is
bound, including but not limited to, that certain Agreement and Plan of Merger,
dated as of March 6, 2000, among MRI, MGM, and a wholly-owned subsidiary of MGM,
and there is no default and no event or omission has occurred which, with the
passage of time or the giving of notice or both, would constitute a default on
the part of MR Sub under this Agreement;

        (f) to the best of its knowledge, there is no action, proceeding or
investigation, pending or threatened, which questions the validity or
enforceability of this Agreement as to MR Sub;

        (g) no representation, warranty or covenant of MR Sub in this Agreement,
or in any document or certificate furnished or to be furnished to Boyd Sub
pursuant hereto, contains or will contain any untrue statement of material fact
or omits or will omit to state a material fact necessary to make the statements
or facts contained therein not misleading; all such representations, warranties
or statements of MR Sub are based, to the best of MR Sub's knowledge, upon
accurate and complete

                                      -47-

<PAGE>   49

information as of the time of their making, and there have been, to the best of
MR Sub's knowledge, no material changes in such information subsequent thereto;

        (h) MR Sub has no reason to believe that it or its Affiliates will not
receive any gaming license, approval or permit necessary for the consummation of
the transactions contemplated by this Agreement;

        (i) MR Sub has provided Boyd Sub with complete and accurate copies of
the Development Agreement and the Road Development Agreement, including any
amendments thereto. Other than as set forth in or referred to in the Development
Agreement and the Road Development Agreement, to the best of MR Sub's and MRI's
knowledge, there are no unrecorded leases, arrangements, agreements,
understandings, options, contracts, or rights of first refusal affecting or
relating in any material way to the use and development of the Facility and/or
the Property. No material default or breach (nor event which, with the giving of
notice or the passage of time, or both, would constitute a material default or
breach) exists under the Development Agreement or the Road Development Agreement
on the part of MRI or MR Sub or their respective Affiliates, or to the best of
the knowledge of MRI or MR Sub, any other party to such agreements. There is no
information or document not disclosed or provided by MRI or MR Sub to Boyd Sub,
which to the best of the actual knowledge of MRI or MR Sub, could reasonably be
expected to materially adversely affect the use and development of the Facility
and/or the Property.

        (j) MRI and MR Sub have complied, in all material respects, with all
laws, ordinances, rules, regulations, requirements and orders of federal, state,
or local governments and/or their agencies with respect to the Property of which
they have actual knowledge.

        (k) To the best of the knowledge of MRI and MR Sub, there are no
historical or archeological materials or artifacts of any kind or any Indian
ruins of any kind located on the Property;

        (l) To the best of the knowledge of MRI and MR Sub, the Property is not
located within any water conservation, irrigation, weed or insect abatement, or
other similar district, or any special improvement district. The Property is
located within a soil conservation district and a flood hazard area;

        (m) MRI and MR Sub do not have any liability for any taxes, or any
interest or penalty in respect thereof, of any nature that may be assessed
against the Joint Venture or that are or may become a lien against the Property,
except real property taxes not yet due and payable;

        (n) Except as set forth in the Parcel Deed or in the Development
Agreement, there are no conditions imposed by any governmental or quasi-
governmental agency or instrumentality, which, if not satisfied, waived or
otherwise eliminated, could result in a reversion or other defeasance of title
to the Property or the Parcel;

                                      -48-

<PAGE>   50

        (o) MRI and MR Sub have provided Boyd Sub with copies of any and all
reports, studies, investigations and other similar information obtained by MRI
and/or MR Sub which could reasonably be expected to materially adversely affect
the use and development of the Property; and

        (p) The information furnished by MRI and MR Sub to Boyd Sub or Boyd in
accordance with the provisions of this Agreement is true and accurate in all
material respects, and if, at any time hereafter, there is any material change
in any of such information, MRI or MR Sub shall promptly notify Boyd Sub of such
material change.

        Section 10.2 Boyd Sub. Boyd Sub hereby represents and warrants, which
representations and warranties shall survive the execution of this Agreement
(and which representations and warranties shall be true and accurate in all
material respects at the time that MR Sub conveys the Property to the Joint
Venture pursuant to the terms hereof), that:

        (a) Boyd Sub is a corporation duly organized, validly existing and in
good standing under the laws of the State of New Jersey and has the requisite
corporate power and authority to enter into and carry out the terms of this
Agreement;

        (b) all of the outstanding capital stock of Boyd Sub is owned directly
or indirectly by Boyd;

        (c) all corporate action required to be taken by Boyd Sub to enter into
and carry out the terms of this Agreement has been taken and, except as
otherwise provided or contemplated in this Agreement, no further approval of any
governmental agency, court or other body is necessary in order to permit Boyd
Sub to enter into and carry out the terms of this Agreement;

        (d) this Agreement has been duly executed and delivered by Boyd Sub and
constitutes the legal, valid and binding obligation of Boyd Sub, enforceable in
accordance with its terms (subject to applicable bankruptcy, insolvency,
moratorium or similar laws affecting creditors' rights generally, equitable
principles and judicial discretion);

        (e) to the best of its knowledge, neither the execution and delivery of
this Agreement, nor the performance of its obligations hereunder, has resulted
or will result in any violation of, or default under, the charter or bylaws of
Boyd Sub or any indenture, trust agreement, mortgage or other agreement or any
permit, judgment, decree or order to which Boyd Sub is a party or by which it is
bound, and there is no default and no event or omission has occurred which, with
the passage of time or the giving of notice or both, would constitute a default
on the part of Boyd Sub under this Agreement;

        (f) to the best of its knowledge, there is no action, proceeding or
investigation, pending or threatened, which questions the validity or
enforceability of this Agreement as to Boyd Sub;

                                      -49-

<PAGE>   51

        (g) No representation, warranty or covenant of Boyd Sub in this
Agreement, or in any document or certificate furnished or to be furnished to MR
Sub pursuant hereto, contains or will contain any untrue statement of material
fact or omits or will omit to state a material fact necessary to make the
statements or facts contained therein not misleading; all such representations,
warranties or statements of Boyd Sub are based, to the best of Boyd Sub's
knowledge, upon accurate and complete information as of the time of their
making, and there have been, to the best of Boyd Sub's knowledge, no material
changes in such information subsequent thereto; and

        (h) Boyd Sub has no reason to believe that it or its Affiliates will not
receive any gaming license, approval or permit necessary for the consummation of
the transactions contemplated by this Agreement.

        Section 10.3 Brokers. The parties each represent to the other that they
have not retained any broker, finder or agent in connection with the
transactions contemplated hereby or the negotiation thereof. Each party shall
indemnify and hold the other party harmless from and against all losses, claims,
damages and liabilities, including reasonable attorneys' fees, arising out of or
relating to any claim of brokerage or other commissions relative to this
Agreement or the transactions contemplated hereby insofar as any such claim
arises by reason of services alleged to have been rendered to or at the request
of the indemnifying party.

                                   ARTICLE 11

                              TRANSFER OF INTERESTS

        Section 11.1 Restrictions on Transfers. Except as otherwise expressly
provided in this Agreement, no Venturer shall, without the approval of each of
the Venturers, sell, transfer, assign, pledge, encumber or otherwise dispose of
(each a "Transfer") all or any portion of its Interest in the Joint Venture or
any rights therein. Any purported Transfer in violation of the preceding
sentence shall be null and void and of no force or effect. Each Venturer
acknowledges the reasonableness of the restrictions on Transfers imposed by this
Agreement in view of the Joint Venture purposes and the relationship of the
Venturers. The Venturers acknowledge and agree that they are relying on the
experience, reputation and financial condition of each other in entering into
this Agreement, that the nature of the relationship between the Venturers is
personal and that the amount of damages that would be sustained by the Venturers
in the event of a breach of the restrictions on Transfers imposed by this
Agreement would not be readily ascertainable. Accordingly, upon any breach of
this Article 11 by any Venturer, the other Venturer (in addition to all rights
and remedies it may have under this Agreement, at law or in equity) shall be
entitled to a decree or order from a court of competent jurisdiction
specifically enforcing the restrictions on Transfers contained herein. Each
Venturer further agrees to hold the Joint Venture and the other Venturer
(including their respective directors, officers, employees, Affiliates,
successors and assigns) harmless for, from and against any and all claims,
losses, damages, liabilities and costs, including without limitation, reasonable
attorneys' fees (which shall be reimbursed as incurred), and liabilities for
income taxes and costs of

                                      -50-

<PAGE>   52

enforcing this indemnity, incurred by any of such indemnified parties as a
result of a Transfer or purported Transfer in violation of this Agreement.

        Section 11 .2 Permitted Transfers.

        (a) A Venturer shall be entitled to make the following Transfers of its
Interest (each a "Permitted Transfer") without the approval of the other
Venturer: (i) a pledge or encumbrance of its Interest in favor of one or more
commercial banks or other institutional lenders to secure a loan provided by
such lender(s) to such Venturer or its Affiliates, provided that a foreclosure
upon such pledge or encumbrance shall not be a Permitted Transfer; (ii) a
Transfer of its Interest to an Affiliate of such Venturer, subject to the
provisions of Section 11.3; (iii) a Transfer of its Interest to MR Sub or Boyd
Sub; or (iv) a Transfer of its Interest pursuant to the right of first refusal
provisions of Section 11.4.

        (b) Except with respect to Permitted Transfers described in clause (ii),
(iii) or (iv) of Section 11.2(a), a transferee of an Interest in the Joint
Venture shall be admitted as a Venturer only upon the agreement of each
Venturer. The rights of a transferee who is not admitted as a Venturer shall be
limited to the right to receive allocations and distributions from the Joint
Venture with respect to the Interest transferred, as provided in this Agreement.
A transferee that is not admitted as a Venturer shall not be a Venturer with
respect to such Interest, and without limiting the foregoing, shall not have the
right to inspect the Joint Venture's books or assets, grant or withhold
approvals, act for or bind the Joint Venture or otherwise participate in its
operations.

        (c) The Venturers intend that a Permitted Transfer shall not cause the
dissolution of the Joint Venture under the Act. However, if a court of competent
jurisdiction determines that a dissolution has occurred, the Venturers shall
continue to hold the Joint Venture's assets and operate its business in joint
venture form pursuant to this Agreement as if no such dissolution had occurred.

        (d) In the event of a Permitted Transfer, the Venturer making the
Transfer shall notify the other Venturer of the Transfer and shall furnish the
Joint Venture with the transferee's taxpayer identification number and
sufficient information to determine the transferee's Interest and tax basis in
the Joint Venture and any other information reasonably necessary to permit the
Joint Venture to file all required tax returns. All Transfers shall be by
instrument in form and substance reasonably satisfactory to counsel for the
Joint Venture and shall contain an agreement of the transferee to accept the
Transfer and to accept and adopt all of the applicable provisions of this
Agreement. The Venturer making a Permitted Transfer shall execute, acknowledge
and deliver all such documents and instruments, in form and substance reasonably
satisfactory to counsel for the Joint Venture, as may be necessary or desirable
to effectuate such Transfer, and shall pay all costs and expenses incurred by
the Joint Venture in connection with such Transfer.

        (e) Notwithstanding anything to the contrary in this Agreement, no
Venturer shall be permitted to Transfer its Interest or any portion thereof to
the extent such Transfer would be in violation of applicable law (including
without limitation securities laws and regulations and the New

                                      -51-

<PAGE>   53

Jersey Casino Control Act) or would cause a default under any agreement or
instrument to which the Joint Venture is a party or by which it is bound.
Without limiting the foregoing, at such time as the Joint Venture is a casino
licensee or an applicant for a casino license, no Transfer of Interest or any
portion thereof shall be valid or effective unless such transfer is first
approved by the New Jersey Casino Control Commission as provided in N.J.S.A.
5:12-82(d)(7).

        Section 11.3  Limitation on Ownership of Venturers.

        (a) Unless otherwise agreed by Boyd Sub, all of the outstanding capital
stock of MR Sub (or any Affiliate of MR Sub to whom MR Sub Transfers its
Interest pursuant to the terms of Section 11.2(a)(ii) hereof) shall continue to
be owned directly or indirectly by MRI or MGM.

        (b) Unless otherwise agreed by MR Sub, all of the outstanding capital
stock of Boyd Sub (or any Affiliate of Boyd Sub to whom Boyd Sub Transfers its
Interest pursuant to the terms of Section 11.2(a)(ii) hereof) shall continue to
be owned directly or indirectly by Boyd.

        Section 11.4  Right of First Refusal.

        (a) Commencing on the first anniversary of the opening of the Facility
to the public, either Venturer shall have the right to Transfer all or any part
of its Interest in the Joint Venture to a person who is not an Affiliate of any
Venturer (the "Third Party"), in consideration for cash and/or a promissory
note, provided that (i) the Venturer wishing to Transfer its Interest (the
"Initiating Venturer") has not caused the Joint Venture to be in default under
the terms of the Construction Financing, (ii) the Initiating Venturer is not in
default under any of the provisions of this Agreement, and (iii) the Initiating
Venturer first offers the Interest (or portion thereof) to the other Venturer as
provided in this Section 11.4.

        (b) Prior to becoming legally obligated to Transfer its Interest or any
portion thereof (the "Relevant Interest") to a Third Party pursuant to the terms
of this Section 11.4, the Initiating Venturer shall deliver written notice (the
"Offering Notice") to the other Venturer (the "Responding Venturer") offering to
Transfer the Relevant Interest to the Responding Venturer on the same terms and
for the same price as the Initiating Venturer proposes to Transfer to the Third
Party. The Offering Notice shall specify the name of the Third Party, the
Relevant Interest proposed to be Transferred and the material terms on which the
Transfer is to be consummated, including without limitation, the Transfer price,
terms of payment and the time and place of the closing. The Responding Venturer
shall thereupon have the right and option to purchase from the Initiating
Venturer all ( but not less than all) of the Relevant Interest at the purchase
price set forth in the Offering Notice by delivering written notice (an
"Acceptance Notice") to the Initiating Venturer within 30 days after delivery of
the Offering Notice. If the Responding Venturer delivers an Acceptance Notice,
it shall be legally obligated to purchase the Relevant Interest on the same
terms as specified in the Offering Notice at a closing to be held as specified
in the Offering Notice (but in no event earlier than 60 days after delivery of
the Offering Notice) or such other time as may be directed by the New Jersey
Gaming Authorities. At the closing, the Initiating Venturer shall deliver

                                      -52-

<PAGE>   54

to the Responding Venturer good title to the Relevant Interest, free and clear
of any liens, claims or other encumbrances.

        (c) If the Responding Venturer does not elect to purchase the Relevant
Interest, it may, within the 30-day period referred to above, deliver to the
Initiating Venturer written notice (the "Disapproval Notice") stating that it
does not elect to purchase the Relevant Interest and that it disapproves of the
proposed Transfer to the Third Party. In the event that the Responding Venturer
delivers the Disapproval Notice within such 30-day period, and the Disapproval
Notice sets forth the existence of specific facts which reasonably demonstrate
that the Third Party would not be suitable as a Venturer due to its background,
reputation or lack of financial capability, the Initiating Venturer may not
consummate the proposed Transfer. If the Responding Venturer does not deliver
the Acceptance Notice or the Disapproval Notice within the 30-day period
referred to above, or if the Disapproval Notice does not satisfy the foregoing
requirements, the Initiating Venturer may, within 90 days after the expiration
of such 30-day period, consummate the proposed Transfer to the Third Party on
the terms set forth in the Offering Notice or on substantially similar terms. If
the Initiating Venturer does not consummate the proposed Transfer within such
90-day period, the proposed Transfer may not be effected unless the Initiating
Venturer again complies with the provisions of this Section 11.4.

        Section 11.5 Buy-Out on Default. At any time during the continuance of
an Event of Default under this Agreement, the non-defaulting Venturer, without
limiting any other rights or remedies it may have under this Agreement, at law
or in equity, may, upon written notice (the "Appraisal Notice") delivered to the
Defaulting Venturer, elect to purchase all (but not less than all) of the
Interest of the Defaulting Venturer for cash in an amount equal to 80% of the
Appraised Value of the Defaulting Venturer's Interest. The "Appraised Value"
shall be an amount equal to the Defaulting Venturer's Interest multiplied by the
fair market value of the Joint Venture, which shall represent the amount that a
single purchaser unrelated to any Venturer would reasonably be expected to pay
for the Joint Venture business and assets as a going concern, subject to all
existing indebtedness, liens and encumbrances, in a single cash purchase, taking
into account the current condition, use and net income of the Facility. If the
Venturers are unable to mutually agree upon the Appraised Value within 30 days
after delivery of the Appraisal Notice, each Venturer shall select a reputable
MAI appraiser to determine the Appraised Value. The two appraisers shall furnish
the Venturers with their written appraisals within 45 days of their selection,
setting forth their determinations of the Appraised Value as of the date of the
Appraisal Notice. If the higher of such appraisals does not exceed the lower of
such appraisals by more than 10%, the Appraised Value shall be the average of
the two appraisals. If the higher of such appraisals exceeds the lower of such
appraisals by more than 10%, the two appraisers shall, within 20 days, mutually
select a third reputable MAI appraiser. The third appraiser shall furnish the
Venturers with its written appraisal within 45 days of its selection, and the
Appraised Value shall be the average of the three appraisals. The cost of the
appraisals shall be borne equally by the Defaulting Venturer and the
non-defaulting Venturer. The determination of the Appraised Value in accordance
with this Section 11.5 shall constitute a final and non-appealable arbitration.
The closing of the purchase and sale of the Interest of the Defaulting Venturer
pursuant to this Section 11.5 shall occur not later than 90 days after

                                      -53-

<PAGE>   55

determination of the Appraised Value, or such other time as may be directed by
the New Jersey Gaming Authorities. At the closing, the Defaulting Venturer shall
deliver to the non-defaulting Venturer good title to its Interest, free and
clear of any liens, claims or other encumbrances.

                                   ARTICLE 12

                                EVENTS OF DEFAULT

        Section 12.1 Events of Default. The occurrence of any of the following
events shall constitute an "Event of Default" hereunder on the part of the
Venturer to which such event relates (the "Defaulting Venturer") if within 30
days following delivery to the Defaulting Venturer of written notice of such
default by the other Venturer, or within 10 days if the default is due solely to
the non-payment of monies, the Defaulting Venturer fails to pay such monies, or
in the case of non-monetary defaults, fails to commence substantial efforts to
cure such default or thereafter fails within a reasonable time to prosecute to
completion with diligence the curing of such default; provided, however, that
the occurrence of any of the events described in Section 12.1 (a) or (b) shall
constitute an Event of Default immediately upon such occurrence without any
requirement of notice or the passage of time except as specifically set forth
therein:

        (a) the violation by a Venturer of any of the restrictions set forth in
Article 11 of this Agreement upon the right of such Venturer to Transfer its
Interest;

        (b) (i) the institution by a Venturer of proceedings under any federal
or state law for the relief of debtors wherein such Venturer is seeking relief
as debtor, (ii) a general assignment by a Venturer for the benefit of creditors,
(iii) the institution by a Venturer of a proceeding for relief under the Federal
Bankruptcy Code, (iv) the institution against a Venturer of a proceeding under
the Federal Bankruptcy Code, which proceeding is not dismissed, stayed or
discharged within 60 days after the filing thereof or, if stayed, which stay is
thereafter lifted without a contemporaneous discharge or dismissal of such
proceeding, (v) the admission by a Venturer in writing of its inability to pay
its debts as they mature or (vi) the attachment, execution or other judicial
seizure of all or any substantial part of a Venturer's Interest which remains
undismissed or undischarged for a period of 15 days after the levy thereof, if
such attachment, execution or other judicial seizure would reasonably be
expected to have a material adverse effect upon the performance by such Venturer
of its obligations under this Agreement; provided, however, that any such
attachment, execution or seizure shall not constitute an Event of Default if
such Venturer posts a bond sufficient to fully satisfy the amount of such claim
or judgment within 15 days after the levy thereof and the Venturer's Interest is
thereby released from the lien of such attachment (each an "Event of
Bankruptcy");

        (c) any material breach by a Venturer of its representations and
warranties pursuant to Article 10 hereof or any material default in performance
of, or failure to comply with, any other agreement, obligation or undertaking of
a Venturer contained in this Agreement;

                                      -54-

<PAGE>   56

        (d) the Managing Venturer causing or permitting a material event of
default under the Construction Financing or any other third-party indebtedness
incurred by the Joint Venture, which material default shall be continuing after
notice of such default is received by the Joint Venture and after one-half (1/2)
of the applicable cure period has expired;

        (e) the issuance of a final and non-appealable order or directive of a
governmental agency of any jurisdiction, including the New Jersey Gaming
Authorities, disqualifying a Venturer from holding any license, approval or
permit required for the business of the Joint Venture, or directing that the
other Venturer or any of its Affiliates terminate its relationship with such
Venturer;

        (f) the failure or inability of a Venturer, its officers, directors, key
employees or direct or indirect owners or the officers, directors or key
employees of its direct or indirect owners to obtain any license, approval or
permit required for the business of the Joint Venture or any other event
involving a Venturer which results in the Joint Venture or such Venturer
becoming unable to conduct a gaming business; and

        (g) the failure of MRI or its Affiliates to use all commercially
reasonable efforts to obtain any Master Plan Approvals or to cause to be
completed the Government Improvements and/or the Master Plan Improvements upon
the terms and conditions set forth herein.

        Section 12.2 Remedies upon Default. Upon the occurrence of any Event of
Default, the non-defaulting Venturer shall have the right, without limitation,
to exercise any and all rights and remedies set forth in this Agreement or as
may be available at law or in equity against the Defaulting Venturer.

                                   ARTICLE 13

                           DISSOLUTION AND LIQUIDATION

        Section 13.1  Events of Dissolution.  The Joint Venture shall dissolve
upon the occurrence of any of the following events:

        (a) the sale or other disposition (including, without limitation, taking
by eminent domain) of all or substantially all of the assets of the Joint
Venture and the collection of the proceeds thereof;

        (b) the approval of each of the Venturers;

        (c) at the election of the non-defaulting Venturer, the occurrence of
an Event of Default by a Defaulting Venturer;

        (d) December 31, 2070;

                                      -55-

<PAGE>   57

        (e) at the election of Boyd Sub or MR Sub, as the case may be, pursuant
to Section 4.2(e) hereof;

        (f) at the election of either Venturer in the event of a final
determination, judicial or otherwise, resulting in the permanent termination of
construction of the Connector prior to the substantial completion thereof;

        (g) the final and non-appealable denial of the Joint Venture's
application for a casino license for the Facility or, after issuance, the final
and non-appealable revocation of such license;

        (h) the death, withdrawal, bankruptcy or dissolution of a Venturer, or
the occurrence of any event that terminates a Venturer's continued interest in
the Joint Venture or causes a Transfer of such interest by operation of law,
unless within 90 days after such event one or more new Venturers is admitted
pursuant to Section 11.2 or 13.2 hereof;

        (i) the failure of the Commencement of Construction of the Facility to
occur on or before December 31, 2010; or

        (j) the occurrence or failure to occur of any other event, as a result
of which it is or becomes unlawful or impossible to carry on the business of the
Joint Venture.

        Section 13.2 Venturers' Consent to Continue Business. Upon the
occurrence of an event described in Section 13.1 which may cause the dissolution
of the Joint Venture, or subsequent discovery of the occurrence of such an
event, the Managing Venturer shall immediately notify each of the remaining
Venturers of the occurrence of the event, and each of the remaining Venturers
shall notify the Managing Venturer whether or not it consents to continue the
business of the Joint Venture. If all of the remaining Venturers consent to
continue the Joint Venture's business, and there are at least two remaining
Venturers, the Joint Venture shall not be dissolved and the remaining Venturers
shall continue the Joint Venture's business. If there is only one remaining
Venturer and it consents to continue the Joint Venture's business, such Venturer
shall have the absolute right, notwithstanding any contrary provision of this
Agreement (but subject to applicable law) to Transfer a portion of its Interest
to a transferee (who may be an Affiliate of such Venturer) and to unilaterally
admit such transferee as a new Venturer in the Joint Venture, so that such two
Venturers may continue the Joint Venture's business.

        Section 13.3 Dissolution and Liquidation. Upon the occurrence of an
event of dissolution described in Section 13.1, if the business of the Joint
Venture is not continued by the remaining Venturers pursuant to Section 13.2,
the Joint Venture shall continue solely for the purpose of winding up its
affairs in an orderly manner, liquidating its assets and satisfying the claims
of its creditors and Venturers and no Venturer shall take any action that is
inconsistent with, or not necessary to or appropriate for, winding up the Joint
Venture's business and affairs. To the extent not inconsistent with the
foregoing, all covenants and obligations set forth in this Agreement shall
continue in effect until such time as the Joint Venture's assets have been
distributed pursuant to this

                                      -56-

<PAGE>   58

Section 13.3 and the Joint Venture has been liquidated. The Managing Venturer
shall be responsible for overseeing the winding up and liquidation of the Joint
Venture, shall take full account of the Joint Venture's liabilities and assets,
shall cause the assets to be liquidated as promptly as is consistent with
obtaining the fair market value thereof and shall cause the proceeds therefrom,
to the extent sufficient therefor, to be applied and distributed in the
following order:

        (a) first, to the payment and discharge of all of the Joint Venture's
debts and liabilities to creditors other than Venturers, in the order of
priority provided by law;

        (b) second, to the payment and discharge of all of the Joint Venture's
debts and liabilities to Venturers, other than liabilities for distributions to
which Venturers are entitled in their capacities as Venturers pursuant to
Article 6 hereof;

        (c) third, to the establishment of any reserves that may reasonably be
deemed necessary by the Managing Venturer to meet any contingent or unforeseen
liabilities or obligations of the Joint Venture not covered by insurance. Any
such reserve shall be deposited in a bank or other financial institution. All or
any portion of such reserve no longer needed for the purpose for which it was
established shall be distributed as promptly as practicable in accordance with
Section 13.3(d) or 13.3(e), as appropriate;

        (d) fourth, to the Venturers in accordance with the positive balances
in their respective Capital Accounts; and

        (e) fifth, to the Venturers in accordance with their respective
Interests.

        The Managing Venturer shall not receive any compensation for any
services performed pursuant to this Section 13.3 but shall be entitled to
reimbursement for all out-of-pocket costs and expenses reasonably incurred in
connection therewith.

        Any gains or losses on the disposition of assets of the Joint Venture in
the process of liquidation shall be credited or charged to the Venturers in
accordance with Article 5 hereof. Any property distributed in kind in the
liquidation shall be valued by agreement of the Venturers and the Capital
Accounts of the Venturers shall be adjusted to reflect the amount of Profits or
Losses that would have been recognized by the Joint Venture had such property
been sold for such value immediately before such distribution.

        In the event that any Venturer has a negative balance in its Capital
Account after the liquidation of all of the Joint Venture's assets, such
Venturer shall contribute to the Joint Venture cash in an amount sufficient to
eliminate such negative balance.

        Section 13.4 Notice of Dissolution. Upon the occurrence of an event of
dissolution described in Section 13.1, if the business of the Joint Venture is
not continued by the remaining Venturers pursuant to Section 13.2, the Managing
Venturer shall, within 30 days thereafter (i)

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<PAGE>   59

provide written notice thereof to each of the Venturers and to all other persons
with whom the Joint Venture regularly conducts business (as determined in the
discretion of the Managing Venturer) and (ii) publish notice of such dissolution
in a newspaper of general circulation in each place in which the Joint Venture
conducts business.

                                   ARTICLE 14

                            MISCELLANEOUS PROVISIONS

        Section 14.1 Waiver of Partition and Covenant Not to Withdraw. Each
Venturer covenants and agrees that the Venturers have entered into this
Agreement based on the mutual expectation that both Venturers will continue as
Venturers and carry out the duties and obligations undertaken by them hereunder
and, except as otherwise expressly required or permitted by this Agreement or
approved by each of the Venturers, each Venturer covenants and agrees not to (i)
take any action to require partition or to compel any sale with respect to its
Interest, (ii) take any action to file a certificate of dissolution or its
equivalent with respect to itself, (iii) take any action that would cause an
Event of Bankruptcy of such Venturer, (iv) withdraw or resign, or attempt to do
so, from the Joint Venture, (v) exercise any power under the Act to dissolve the
Joint Venture, (vi) except as permitted herein, transfer all or any portion of
its Interest, (vii) petition for judicial dissolution of the Joint Venture or
(viii) demand a return of its capital contributions. Upon any breach of this
Section 14.1 by any Venturer, the other Venturer (in addition to all rights and
remedies it may have under this Agreement, at law or in equity) shall be
entitled to a decree or order from a court of competent jurisdiction restraining
and enjoining such application, action or proceeding.

        Section 14.2 Notices. Unless otherwise provided herein, all notices or
other communications required or permitted by this Agreement shall be in writing
and shall be deemed to have been duly given on the date of delivery if delivered
personally to the Party to whom notice is given, on the next business day if
sent by confirmed facsimile transmission or on the date of actual delivery if
sent by overnight commercial courier or by first-class mail, registered or
certified, with postage prepaid and properly addressed to the Party at its
address set forth below, or at any other address that any Party may from time to
time designate by written notice to the others:

        If to MR Sub:

                      MAC, CORP.
                      c/o MGM MIRAGE
                      3600 Las Vegas Boulevard South
                      Las Vegas, Nevada 89109
                      Attention:  General Counsel
                      Facsimile: (702) 693-7628

                                      -58-

<PAGE>   60

        If to MRI:

                      MIRAGE RESORTS, INCORPORATED
                      c/o MGM MIRAGE
                      3600 Las Vegas Boulevard South
                      Las Vegas, Nevada 89109
                      Attention:  General Counsel
                      Facsimile: (702) 693-7628

        If to Boyd Sub:

                      BOYD ATLANTIC CITY, INC.
                      c/o Boyd Gaming Corporation
                      2950 Industrial Road
                      Las Vegas, Nevada  89109-1150
                      Attention:  General Counsel
                      Facsimile:  (702) 792-7335

        If to Boyd:

                      BOYD GAMING CORPORATION
                      2950 Industrial Road
                      Las Vegas, Nevada  89109-1150
                      Attention:  General Counsel
                      Facsimile:  (702) 792-7335

        Section 14.3 Amendments. The provisions of this Agreement may not be
waived, amended or repealed, in whole or in part, by any of the Parties hereto,
except with the written consent of each of the Parties hereto.

        Section 14.4 Successors and Assigns. This Agreement shall be binding on,
and inure to the benefit of, the Parties hereto and their respective heirs,
legal representatives, successors and permitted transferees and assigns.

        Section 14.5  Time.  Time is of the essence with respect to this
Agreement and each and every provision hereof.

        Section 14.6 Severability. Each provision of this Agreement is intended
to be severable. If any term or provision hereof is held to be illegal or
invalid for any reason, such illegality or invalidity shall not affect the
legality or validity of the remainder of this Agreement.

                                      -59-

<PAGE>   61

        Section 14.7 Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

        Section 14.8 Attorneys' Fees. Except as otherwise provided in this
Agreement, each of the Parties shall bear its own legal fees and expenses in
connection with the negotiation, execution and performance of this Agreement.
Boyd and Boyd Sub acknowledge that various legal and administrative proceedings
are pending in federal and state courts in New Jersey and before the NJDEP
challenging the construction of the Connector and agree that if they are named
as parties in any such proceeding or in any future proceeding relating to the
Development Agreement, the Parcel or the Connector, they shall bear their own
legal fees and expenses in connection therewith. The Joint Venture shall bear
all legal fees and expenses in connection with any proceeding in which the Joint
Venture is named as a party. Should any action or proceeding be commenced
(including without limitation any proceeding in bankruptcy) by any of the
Parties to enforce any of the terms of this Agreement or that in any other way
pertains to Joint Venture affairs or this Agreement, the prevailing Party or
Parties in such action or proceeding (as determined by the presiding
official(s)) shall be entitled to receive from the opposing Party or Parties the
prevailing Party's reasonable costs and attorneys' fees incurred in
investigating, prosecuting, defending or appearing in any such action or
proceeding.

        Section 14.9 Entire Agreement. This Agreement constitutes the complete
and exclusive statement of the agreement among the Parties. This Agreement
supersedes all prior negotiations, understandings and agreements of the parties,
written or oral, with respect to the subject matter hereof, including without
limitation the Amended and Restated Agreement.

        Section 14.10 Further Assurances. Each of the Parties agrees to perform
any further acts and execute, acknowledge and deliver any documents or
instruments which may be reasonably necessary or appropriate to carry out the
provisions of this Agreement and to satisfy the conditions to the obligations of
the Parties hereunder.

        Section 14.11 Headings; Interpretation. Article and section headings
contained in this Agreement are for convenience of reference only and shall not
be deemed a part of this Agreement or have any legal effect. All provisions of
this Agreement shall be construed to further the interests and business of the
Joint Venture. The Parties agree to cooperate with one another in all respects
in order to effect the purposes of and carry out the business activities of the
Joint Venture, as more particularly set forth herein.

        Section 14.12 Exhibits. Each of the Exhibits referred to herein and
attached hereto is hereby incorporated by reference and made a part hereof for
all purposes. Unless the context otherwise expressly requires, any reference to
"this Agreement" shall mean and include all such Exhibits.

        Section 14.13 Approvals and Consents.  Whenever the approval or consent
of a Venturer or any of the Parties is required by this Agreement, such Venturer
or Party shall have the right to

                                      -60-

<PAGE>   62

give or withhold such approval or consent in its sole and unfettered discretion,
unless otherwise expressly provided herein.

        Section 14.14 Estoppels. Each of the Parties shall, upon the written
request of any other Party, promptly execute and deliver to the other Parties a
statement certifying that this Agreement is unmodified and in full force and
effect (or, if modified, the nature of the modification) and whether or not
there are, to such Party's knowledge, any uncured defaults on the part of the
other Party or Parties, specifying such defaults if any exist. Any such
statement may be relied upon by third parties.

        Section 14.15 Compliance with Laws and Contractual Obligations. Each of
the Parties shall at all times act in accordance with all applicable laws and
regulations and shall indemnify and hold the other Parties (including their
respective directors, officers, employees, Affiliates, successors and assigns)
harmless for, from and against any and all claims, losses, damages, liabilities
and costs, including without limitation, reasonable attorneys' fees (which shall
be reimbursed as incurred), arising out of or relating to any breach of such
laws or regulations. The Joint Venture will at all times comply with all legal
and contractual obligations and requirements applicable to the acquisition or
development of the Property and the operation of the Facility, including without
limitation those relating to the employment of economically disadvantaged
persons and City residents, contained in the Development Agreement, and with all
applicable federal, state and local statutes, ordinances and regulations.

        Section 14.16 Remedies Cumulative. Each right, power and remedy provided
for in this Agreement or now or hereafter existing at law, in equity, by statute
or otherwise shall be cumulative and concurrent and shall be in addition to
every other right, power or remedy provided for in this Agreement or now or
hereafter existing at law, in equity, by statute or otherwise, and the exercise
by any Party of any one or more of such rights, powers or remedies shall not
preclude the simultaneous or later exercise by such Party of any or all of such
other rights, powers or remedies.

        Section 14.17 Waiver. No consent or waiver, express or implied, by any
Party to or of any breach or default by any other Party in the performance of
obligations under this Agreement shall be deemed or construed to be a consent or
waiver to or of any other breach or default in the performance by such Party.
Failure on the part of any Party to complain of any act or failure to act by any
other party or to declare any other party in default, irrespective of how long
such failure continues, shall not constitute a waiver by any Party of its rights
under this Agreement.

        Section 14.18 Gaming Licensing Matters. The Parties shall provide all
reasonable cooperation with any investigation by any gaming authority having
jurisdiction over any Party or any Affiliate of any Party. Each Venturer shall
cause any transferee of any portion of its Interest likewise to so cooperate.
Each Party agrees that it shall not take any action or omit to take any action
that would have the effect of adversely affecting any gaming license, approval
or permit held by any Venturer. MR Sub and its Affiliates shall cooperate with
Boyd and its Affiliates, to the extent reasonably necessary, in connection with
any review of this Agreement by the New Jersey Gaming

                                      -61-

<PAGE>   63

Authorities, and the Parties shall execute and deliver any further documents or
instruments, including amendments to this Agreement, as the New Jersey Gaming
Authorities may reasonably require and which do not alter the terms of this
Agreement in a manner unfavorable to any of the Parties in their sole
discretion. Each Party acknowledges that monetary damages alone would not be
adequate compensation for a breach of this Section 14.18 and the Parties agree
that a non-breaching Party shall be entitled to seek a decree or order from a
court of competent jurisdiction for specific performance to restrain a breach or
threatened breach of this Section 14.18 or to require compliance by a Party with
this Section 14.18.

        Section 14.19 Liquidated Damages. The provisions of Section 3.5 hereof,
which in certain circumstances could result in the reduction of a Venturer's
Interest, constitute an agreement by the Parties upon a liquidated amount as to
the damages sustained by the other Parties upon the failure of a Venturer to
contribute to the capital of the Joint Venture. Each Venturer acknowledges that
the amount of damages sustained by the Venturers in the event of such a failure
is not readily ascertainable and that the provisions of Section 3.5 hereof
establishing such liquidated amount are reasonable under the circumstances
existing at the time of the execution of this Agreement and, to the extent
permitted by law, each Venturer waives any and all rights of any nature
whatsoever to challenge the reasonableness of such provisions as of the date of
this Agreement. In the event that the non-defaulting Venturer contributes the
full amount of capital that the Defaulting Venturer shall have failed to
contribute, the reduction in the Defaulting Venturer's Interest shall be the
sole measure of damages resulting from the occurrence of such a failure. If the
non-defaulting Venturer does not contribute the full amount of the deficit, the
Joint Venture and the non-defaulting Venturer shall have all other rights and
remedies that may be available under this Agreement, at law or in equity against
the Defaulting Venturer with respect to the portion of the deficit not
contributed by the non- defaulting Venturer.

        Section 14.20 Governing Law and Choice of Forum. This Agreement shall be
governed by and construed in accordance with the laws of the State of New
Jersey, excluding its conflict of law principles. In the event of any litigation
between the Parties concerning or arising out of this Agreement, the Parties
hereby consent to the exclusive jurisdiction of the federal and state courts in
New Jersey.

        Section 14.21 Joint Access. MRI agrees that there shall be a physical
public connection or transportation link between the Facility and the MRI Casino
Project (if the same is constructed), which connection or link shall be subject
to the reasonable approval of Boyd Sub. The Joint Venture shall pay its
equitable share of all costs and expenses relating to the design, engineering,
construction, operation, maintenance and repair of such physical public
connection or transportation link, including the Joint Venture's equitable share
of any people mover system, but only if such people mover system includes a
station or stop constructed upon the Property and such station or stop is
approved by Boyd Sub.

        Section 14.22 Memorandum of Agreement.  The Parties hereby consent to
the recordation of a memorandum of agreement (the "Memorandum of Agreement")
promptly following

                                      -62-

<PAGE>   64

contribution of the Property by MR Sub to the Joint Venture pursuant to Section
3.2(a) hereof, which Memorandum of Agreement shall be in form and substance
reasonably acceptable to each of Boyd Sub and MR Sub. Without limiting the
foregoing, the Memorandum of Agreement will specifically reference the Initial
Master Plan Improvements and Government Improvements to be constructed by MRI
and its Affiliates upon the Parcel and the Employee Parking Lease. Upon the
earlier of (a) the substantial completion of all of the Initial Master Plan
Improvements described on Exhibit C-2; or (b) the dissolution of the Joint
Venture in accordance with the terms hereof, the Managing Venturer shall execute
a release of the Memorandum of Agreement in recordable form and shall cause such
release to be recorded in the official records of the County.

        Section 14.23 Survival of Indemnification Obligations. Each and every
indemnification obligation of any one or more of the Parties hereto shall
expressly survive the termination of this Agreement and the dissolution of the
Joint Venture.

        IN WITNESS WHEREOF, the parties have executed this Agreement as of the
date first above written.

                                      MAC, CORP., a New Jersey corporation

                                      By:_________________________________
                                      Its:_________________________________

                                      Boyd Atlantic City, Inc., a New Jersey
                                      corporation

                                      By:_________________________________
                                      Its:_________________________________

                                      Mirage Resorts, Incorporated
                                      hereby agrees to all of its
                                      obligations specified in the
                                      foregoing Agreement.

                                      Mirage Resorts, Incorporated, a Nevada
                                      corporation

                                      By:_________________________________
                                      Its:_________________________________

                                      -63-

<PAGE>   65

                                        Boyd Gaming Corporation
                                        hereby agrees to all of its
                                        obligations specified in the
                                        foregoing Agreement.

                                        Boyd Gaming Corporation, a Nevada
                                        corporation

                                        By:_________________________________
                                        Its:_________________________________

                                      -64-

<PAGE>   66

                 EXHIBITS INTENTIONALLY OMITTED DUE TO INABILITY
               TO EASILY REPRODUCE, BUT WILL BE FILED UPON REQUEST

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