Document:

<PAGE>

                                                                    EXHIBIT 10.5

                                                          Draft:  18 August 2000
________________________________________________________________________________

Securitisation Advisory Services Pty Limited
Manager

Merrill Lynch International (Australia) Limited
MLIA and Party A

Perpetual Trustee Company Limited
Party B

Commonwealth Bank of Australia
CBA and Standby Swap Provider

Series 2000-2G Medallion Trust
ISDA Master Agreement
(Currency Swap Agreement)

              Levels 23-35  No 1 O'Connell Street Sydney  NSW  2000  Australia
                 PO Box H3 Australia Square Sydney NSW 1215  DX 370 Sydney
                         Tel + 61 2 9353 4000 Fax  + 61 2 9251 7832
                    Our ref - 174/801/1545256  Contact - Ninian Lewis

                 Sydney . Melbourne . Brisbane . Perth . Canberra . Darwin

 Liability limited by the Solicitors' Limitation of Liability Scheme approved
                under the Professional Standards Act 1994 (NSW)

<PAGE>

                                     Schedule

                                     to the

                                MASTER AGREEMENT

                 dated as of                     2000 between

                 Securitisation Advisory Services Pty. Limited
                                ACN 064 133 946
                                  ("Manager")

                                      and

                Merrill Lynch International (Australia) Limited
                               ABN 31 002 892 846
                             ("MLIA" and "Party A")

                                      and

                       Perpetual Trustee Company Limited
                                ACN 000 001 007
in its several capacities as trustee of various Series Trusts from time to time
     established under the Master Trust Deed and various Series Supplements
                                  ("Party B")

                                      and

                         Commonwealth Bank of Australia
                                ACN 123 123 124
                      ("CBA" and "Standby Swap Provider")

Part 1.    Termination Provisions.

In this Agreement:

(a)   "Specified Entity" does not apply in relation to Party A or Party B.

(b)   The definition of "Specified Transaction" is not applicable.

(c)   (i)      The following provisions of Section 5 will not apply to Party A:

               Section 5(a)(ii)     Section 5(a)(v)
               Section 5(a)(iii)    Section 5(a)(vi)
               Section 5(a)(iv)     Section 5(b)(iv)

      (ii)     The following provisions of Section 5 will not apply to Party B:

               Section 5(a)(ii)     Section 5(a)(v)
               Section 5(a)(iii)    Section 5(a)(vi)
               Section 5(a)(iv)     Section 5(a)(vii)

      (iii)    Section 5(b)(ii) will not apply to Party A as the Affected Party
               (subject to Part 5(6)(b) of this Schedule) and Section 5(b)(iii)
               will not apply to Party A as the Burdened Party.

(d)   The "Automatic Early Termination" provisions in Section 6(a) will not
      apply to Party A or Party B.

(e)   Payments on Early Termination.  For the purposes of Section 6(e) of this
      Agreement:

                                                                               2
<PAGE>

         (i)    Market Quotation will apply; and

         (ii)   the Second Method will apply.

(f)      "Termination Currency" means US$ provided that if an amount due in
         respect of an Early Termination Date will be payable by Party B to
         Party A the Termination Currency for the purpose of calculating and
         paying that amount is Australian Dollars.

(g)      "Additional Termination Event" applies.  The following is an Additional
         Termination Event in relation to which both Party A and Party B are
         Affected Parties:

         "An Event of Default (as defined in the Security Trust Deed) occurs and
         the Security Trustee has declared, in accordance with the Security
         Trust Deed, the Relevant Notes immediately due and payable."

         For the purposes of calculating a payment due under Sections 6(d) and
         (e) when an Early Termination Date is designated under Section 6(b) as
         a result of such Additional Termination Event, Party B will be the only
         Affected Party.

Part 2.  Tax Representations

(a)      Payer Tax Representations.  For the purpose of Section 3(e) of this
         Agreement, Party A and Party B each make the following representation:

         It is not required by any applicable law, as modified by the practice
         of any relevant government revenue authority, of any Relevant
         Jurisdiction to make any deduction or withholding for or on account of
         any Tax from any payment (other than interest under Section 2(e),
         6(d)(ii) or 6(e) of this Agreement) to be made by it to any other party
         under this Agreement. In making this representation, it may rely on:

         (i)    the accuracy of any representation made by that other party
                pursuant to Section 3(f) of this Agreement;

         (ii)   the satisfaction of the agreement contained in Section 4(a)(i)
                or 4(a)(iii) of this Agreement and the accuracy and
                effectiveness of any document provided by that other party
                pursuant to Section 4(a)(i) or 4(a)(iii) of this Agreement; and

         (iii)  the satisfaction of the agreement of that other party contained
                in Section 4(d) of this Agreement,

         PROVIDED THAT it shall not be a breach of this representation where
         reliance is placed on clause (ii) and the other party does not deliver
         a form or document under Section 4(a)(iii) by reason of material
         prejudice to its legal or commercial position.

   (b)   Payee Tax Representations. For the purpose of Section 3(f) of this
         Agreement, MLIA as Party A, Party B and CBA as Standby Swap Provider
         and (on and from the Novation Date) as Party A, each makes the
         following representation:

         It is an Australian resident and does not derive the payments under
         this Agreement in part or whole in carrying on a business in a country
         outside Australia at or through a permanent establishment of itself in
         that country.

Part 3.  Agreement to Deliver Documents

                                                                               3
<PAGE>

For the purpose of Sections 4(a)(i) and (ii) of this Agreement, each party
agrees to deliver to each other party the following documents, as applicable:

(a)   Tax forms, documents or certificates to be delivered are:

<TABLE>
<CAPTION>
Party required to deliver           Form/Document/Certificate                  Date by which to be delivered
document
<S>                                 <C>                                        <C>
Party A, Party B, and the           Any document or certificate                On the earlier of (a)
 Standby Swap Provider              reasonably required or reasonably          learning that such document
                                    requested by a party in connection         or certificate is required
                                    with its obligations to make a             and (b) as soon as
                                    payment under this Agreement which         reasonably practicable
                                    would enable that party to make            following a request by a
                                    the payment free from any                  party.
                                    deduction or withholding for or on
                                    account of Tax or which would
                                    reduce the rate at which deduction
                                    or withholding for or on account
                                    of Tax is applied to that payment
                                    as requested by Party A with
                                    respect to any payments received
                                    by Party B.
</TABLE>
(b)   Other documents to be delivered are:

<TABLE>
<CAPTION>
Party required to deliver           Form/Document/Certificate                  Date by which to be
document                                                                       delivered
<S>                                 <C>                                        <C>
Party A, Party B, the               A certificate specifying the               On the execution of this
Standby Swap Provider and           names, title and specimen                  Agreement and each
the  Manager                        signatures of the persons                  Confirmation unless that
                                    authorised to execute this                 certificate has already
                                    Agreement and each Confirmation or         been supplied and remains
                                    other communication in writing             true and in effect and when
                                    made pursuant to this Agreement on         the certificate is updated.
                                    its behalf.

Party A, Party B, the               A legal opinion as to the validity         Prior to the Closing Date.
Standby Swap Provider and           and enforceability of its
the Manager                         obligations under this Agreement
                                    in form and substance (and issued
                                    by legal counsel) reasonably
                                    acceptable to each other party.

Party B                             A certified copy to Party A of             Not less than 5 Business
                                    each Credit Support Document               Days (or such lesser period
                                    specified in respect of Party B            as Party A agrees to)
                                    and (without limiting any                  before the Trade Date of
                                    obligation Party B may have under          the first occurring
                                    the terms of that Credit Support           Transaction and in the case
                                    Document to notify Party A of              of any amending documents
                                    amendments thereto) a certified            entered into subsequent to
                                    copy to Party A of any document            that date, promptly after
                                    that amends in any way the terms           each amending document (if
                                    of that Credit Support Document.           any) has been entered into.

Party A                             Original executed copies to Party          Not less than 5 Business
                                    B and the Standby Swap Provider            Days (or such lesser period
                                    and a certified copy to the                as Party B and the Manager
                                    Manager of each Credit Support             agree to) before the Trade
                                    Document (if any) specified in             Date of the first occurring
                                    respect of
</TABLE>

                                                                               4
<PAGE>

<TABLE>
<S>                                 <C>                                        <C>
                                    Party A and (without limiting any          Transaction and in the case
                                    obligation Party A may have under          of any amending documents
                                    the terms of that Credit Support           entered into subsequent to
                                    Document to notify Party B, the            that date, promptly after
                                    Standby Swap Provider or the               each amending document (if
                                    Manager of amendments thereto)             any) has been entered into.
                                    original executed copies to Party B
                                    and the Standby Swap Provider
                                    and a certified copy to the Manager
                                    of any document that amends in
                                    any way the terms of that Credit
                                    Support Document.
</TABLE>

Other than the legal opinions, any Credit Support Document or any document
amending a Credit Support Document (but including any certifications in relation
to such documents), all documents delivered under this Part 3(b) are covered by
the Section 3(d) representation.  For the purposes of this Part 3(b), a copy of
a document is taken to be certified if a director or secretary of the party
providing the document, or a person authorised to execute this Agreement or a
Confirmation on behalf of that party or a solicitor acting for that party has
certified it to be a true and complete copy of the document of which it purports
to be a copy.

                                                                               5
<PAGE>

Part 4    Miscellaneous

(a)       Addresses for Notices. For the purpose of Section 12(a)
          of this Agreement:

          Address for notices or communications to MLIA as Party A:

          Address:           Merrill Lynch International (Australia) Limited
                             Level 49
                             19-29 Martin Place
                             Sydney NSW 2000.
                             AUSTRALIA

          Attention:         Manager, Operations

          Telex No:          AA24498

          Answerback:        M LYNCH

          Facsimile No.:     612 9225 6655

          Telephone No.:     612 9225 6500

          Address for notices or communications to Party B:

          Address:           Perpetual Trustee Company Limited
                             Level 3
                             39 Hunter Street
                             Sydney  NSW  2000
                             AUSTRALIA

          Attention:         Manager, Securitisation Services

          Facsimile No.:     612 9221 7870

          Additionally, a copy of all notices as well as any changes to
          counterparty's address, telephone number or facsimile number should be
          sent to:

          Address:           Securitisation Advisory Services Pty. Limited
                             Level 8
                             48 Martin Place
                             Sydney  NSW  2000
                             AUSTRALIA

          Attention:         Manager, Securitisation

          Facsimile No.:     612 9378 2481

          Address for notices or communications to CBA as Standby Swap Provider
          and (on and from the Novation Date) as Party A:

          Address:           Commonwealth Bank of Australia
                             Level 8
                             48 Martin Place
                             Sydney  NSW  2000
                             AUSTRALIA

          Attention:         Manager, Securitisation

                                                                               6
<PAGE>

          Facsimile No.:     612 9378 2481

(b)       Process Agent. For the purpose of Section 13(c) of this Agreement:

          MLIA as Party A appoints as its Process Agent: not applicable.

          Party B appoints as its Process Agent: not applicable.

          CBA as Standby Swap Provider and (on and from the Novation Date) as
          Party A appoints as its Process Agent: not applicable.

(c)       Offices. The provisions of Section 10(a) will apply to this Agreement.

(d)       Multibranch Party. For the purpose of Section 10(c) of this Agreement:

          Party A is not a Multibranch Party.

          Party B is not a Multibranch Party.

(e)       Calculation Agent.

          (i)  The Calculation Agent is:

               (A)  in respect of all notices, determinations and calculations
                    in respect of amounts denominated in US$, the Agent Bank;
                    and

               (B)  in respect of all other notices, determinations and
                    calculations, the Manager.

          (ii) All determinations and calculations by the Calculation Agent
               will:

               (A)  be made in good faith and in the exercise of its commercial
                    reasonable judgment; and

               (B)  be determined, where applicable, on the basis of then
                    prevailing market rates or prices.

          All such determinations and calculations will be binding on Party A
          and Party B in the absence of manifest error. The Manager (or, if the
          Manager fails to do so and Party A notifies Party B, Party B)
          covenants in favour of Party A to use reasonable endeavours
          (including, without limitation, taking such action as is reasonably
          necessary to promptly enforce the obligations of the Agent Bank under
          the Agency Agreement) to ensure that the Agent Bank performs its
          obligations as Calculation Agent under this Agreement.

(f)       Credit Support Document.  Details of any Credit Support Document:

          (i)    In relation to MLIA as Party A: A Guarantee from Merrill Lynch
                 & Co. Inc ("M L & Co.") in respect of the Series Trust in the
                 form attached hereto as Annexure 2.

          (ii)   In relation to Party B:  the Security Trust Deed.

          (iii)  In relation to CBA as (on and from the Novation Date) Party A:
                 not applicable.

(g)       Credit Support Provider.

          (i)    In relation to MLIA as Party A:  M L & Co.

          (ii)   In relation to Party B:  None.

                                                                               7
<PAGE>

          (iii)  In relation to CBA as (on and from the Novation Date) Party A:
                 none.

(h)       Governing Law. This Agreement will be governed by and construed in
          accordance with the laws in force in New South Wales, except the
          Credit Support Annex, which will be governed by and construed in
          accordance with the laws in force in the State of New York as provided
          in Paragraph 13(m)(iv) of the Credit Support Annex. Section 13(b)(i)
          is deleted and replaced by the following:

                 "(i) submits to the non-exclusive jurisdiction of the courts of
                 New South Wales and courts of appeal from them; and".

(i)       Netting of Payments. Subparagraph (ii) of Section 2(c) of this
          Agreement will apply in respect of all Transactions.

(j)       "Affiliate" will have the meaning specified in Section 14 of this
          Agreement. However, for the purposes of Section 3(c) Party B is deemed
          not to have any Affiliates.

                                                                               8
<PAGE>

Part 5    Other Provisions

(1)       Payments:  In Section 2:

          (a)  In Section 2(a)(i) add the following sentence:

               "Each payment will be by way of exchange for the corresponding
               payment or payments payable by the other party (if any)".

          (b)  In Section 2(a)(ii) the first sentence is deleted and replaced
               with the following sentence:

               "Unless specified otherwise in this Agreement, payments under
               this Agreement by:

               (i)   Party A, will be made by 10.00 am (New York time); and

               (ii)  Party B, will be made by 4.00pm (Sydney time),

               on the due date for value on that date in the place of the
               account specified in the relevant Confirmation or otherwise
               pursuant to this Agreement, in freely transferable funds, free of
               any set-off, counterclaim, deduction or withholding (except as
               expressly provided in this Agreement) and in the manner customary
               for payment in the required currency.".

          (c)  Insert a new paragraph (iv) in Section 2(a) immediately after
               Section 2(a)(iii) as follows:

               "(iv) The condition precedent in Section 2(a)(iii)(1) does not
                     apply to a payment due to be made to a party if it has
                     satisfied all its payment obligations under Section
                     2(a)(i) of this Agreement and has no future payment
                     obligations, whether absolute or contingent under Section
                     2(a)(i)."

          (d)  Add the following new sentence to Section 2(b):

               "Each new account so designated shall be in the same tax
               jurisdiction as the original account."

          (e)  Amend Section 2(d) as follows:

               (i)   Delete the word "if" at the beginning of Section 2(d)(i)(4)
                     and insert the following words instead:

                     "if and only if X is Party A and".

               (ii)  In Section 2(d)(ii) insert the words "(if and only if Y is
                     Party A)" after the word "then" at the beginning of the
                     last paragraph.

               Without prejudice to the above amendments, it is agreed that
               Party B:

               (iii) is not obliged to pay:

                     (1) any additional amount to Party A under Section
                     2(d)(i)(4); or

                     (2) any amount to Party A under Section 2(d)(ii); and

               (iv)  will not receive payments under this Agreement or any
                     Transaction from which deductions or withholdings have been
                     made.

                                                                               9
<PAGE>

(2)       Party B's Payment Instructions: Party B irrevocably authorises and
          instructs Party A to make payment of:

          (i)  the Initial Exchange Amount due from Party A to Party B in
               respect of the Initial Exchange Date by paying that amount direct
               to the account notified in writing by Party B to Party A for that
               purpose; and

          (ii) any other amount due from Party A to Party B under this Agreement
               by paying that amount direct to the Principal Paying Agent to the
               account outside Australia notified in writing by the Principal
               Paying Agent to Party A for that purpose.

(3)       Party A's Payment Instructions: Party A irrevocably authorises and
          instructs Party B to make payment of:

          (i)  any amount denominated in A$ due from Party B to the account in
               Sydney notified in writing by Party A to Party B from time to
               time; and

          (ii) any amount denominated in US$ due from Party B to the account
               notified in writing by Party A to Party B from time to time.

(4)       Representations:  In Section 3:

          (a)  Section 3(a)(v) is amended by inserting immediately after the
               words "creditors' rights generally" the following:

               "(including in the case of a party being an ADI (as that term is
               defined in the Reserve Bank Act, 1959 (Cth)) and section 13A(3)
               of the Banking Act, 1959 (Cth)).";

          (b)  Relationship Between Parties. Each party will be deemed to
               represent to the other parties on the date on which it enters
               into a Transaction that (absent a written agreement between the
               parties that expressly imposes affirmative obligations to the
               contrary for that Transaction):-

               (i)    Non-Reliance. It is acting for its own account (in the
                      case of Party B, as trustee of the Series Trust), and it
                      has made its own independent decisions to enter into that
                      Transaction and as to whether that Transaction is
                      appropriate or proper for it based upon its own judgment
                      (and in the case of Party B, also on the judgment of the
                      Manager) and upon advice from such advisers as it has
                      deemed necessary. It is not relying on any communication
                      (written or oral) of any other party as investment advice
                      or as a recommendation to enter into that Transaction; it
                      being understood that information and explanations related
                      to the terms and conditions of a Transaction will not be
                      considered investment advice or a recommendation to enter
                      into that Transaction. No communication (written or oral)
                      received from any other party will be deemed to be an
                      assurance or guarantee as to the expected results of that
                      Transaction.

               (ii)   Evaluation and Understanding. It is capable of evaluating
                      and understanding (on its own behalf or through
                      independent professional advice), and understands and
                      accepts, the terms, conditions and risks of that
                      Transaction. It is also capable of assuming, and assumes,
                      the risks of that Transaction.

               (iii)  Status of Parties. No other party is acting as a fiduciary
                      or an adviser to it in respect of that Transaction.

          (c)  insert the following new paragraphs (g), (h) and (i) in Section 3
               immediately after

                                                                              10
<PAGE>

          Section 3(f):

         (g)   Series Trust.  By Party B, in respect of Party B only:

               (i)   Trust Validly Created. The Series Trust has been validly
                     created and is in existence at the Trade Date of the first
                     occurring Transaction.

               (ii)  Sole Trustee. It has been validly appointed as trustee of
                     the Series Trust and is presently the sole trustee of the
                     Series Trust.

               (iii) No Proceedings to Remove. No notice has been given to it
                     and to its knowledge no resolution has been passed, or
                     direction or notice has been given, removing it as trustee
                     of the Series Trust.

               (iv)  Power.  It has power under the Master Trust Deed to:

                     (A)     enter into and perform its obligations under this
                             Agreement and each Credit Support Document in
                             relation to Party B in its capacity as trustee of
                             the Series Trust; and

                     (B)     mortgage or charge the Assets of the Series Trust
                             in the manner provided in the Credit Support
                             Document in relation to Party B,

                     and its entry into this Agreement and each Credit Support
                     Document in relation to Party B is in the interests of the
                     beneficiaries of the Series Trust and does not constitute a
                     breach of trust.

               (v)   Good Title. It is the lawful owner of the Assets of the
                     Series Trust and, subject only to the Credit Support
                     Document in relation to Party B and any Security Interest
                     permitted under the Credit Support Document in relation to
                     Party B, those Assets are free of all other Security
                     Interests (except for Party B's right of indemnity out of
                     the Assets of the Series Trust).

               (vi)  Eligible Swap Participant. The Series Trust was not formed
                     for the specific purpose of constituting an eligible swap
                     participant (as that term is used in Part 35 of the General
                     Regulations under the Commodity Exchange Act).

               (vii) Total Assets. As at close of business on the Trade Date of
                     the first occurring Transaction, following the issue of the
                     Relevant Notes and provided that the aggregate Invested
                     Amount of the Relevant Notes upon issue exceeds
                     USD10,000,000, the Series Trust will have total assets
                     exceeding USD10,000,000.

          (h)  Non-assignment. It has not assigned (whether absolutely, in
               equity, by way of security or otherwise), declared any trust over
               or given any charge over any of its rights under this Agreement
               or any Transaction except, in the case of Party B, for the
               Security Interests created under each Credit Support Document in
               relation to Party B.

          (i)  Contracting as principal.  Each existing Transaction has
               been entered

                                                                              11
<PAGE>

               into by that party as principal and not otherwise."

(5)       Event of Default:  In Section 5(a):

          (a)  Failure to Pay or Deliver: delete paragraph (i) and replace it
               with the following:

               ""(i)  Failure to Pay or Deliver. Failure by the party to make,
                      when due, any payment under this Agreement or delivery
                      under Section 2(a)(i) or 2(e) required to be made by it if
                      such failure is not remedied at or before:

                      (1)  where the failure is by Party B, 10.00am on the tenth
                           day after notice of such failure is given to Party
                           B;" and

                      (2)  where the failure is by Party A, 10.00am on the tenth
                           day after notice of such failure is given to Party
                           A;";

          (b)  Consequential amendments:

               (i)   delete "or" at the end of Section 5(a)(vii); and

               (ii)  replace the full stop at the end of Section 5(a)(viii) with
                     "; or"; and

          (c)  Downgrade Obligations: insert the following new paragraph (ix):

               "(ix)  Downgrade Obligations. In respect of Party A only, Party A
                      fails to comply with Part 5(22) of the Schedule if such
                      failure is not remedied on or before the tenth Business
                      Day (or such later day as Party B and the Manager may
                      agree and which the Rating Agencies confirm in writing
                      will not result in a reduction, qualification or
                      withdrawal of the credit ratings then assigned by them to
                      the Relevant Notes) after notice of such failure is given
                      to Party A.".

(6)       Termination Events:

          (a)  Illegality: In respect of each Transaction, the parties agree
               that the imposition by any Governmental Agency of an Australian
               jurisdiction of any exchange controls, restrictions or
               prohibitions which would otherwise constitute an Illegality for
               the purposes of Sections 5(b)(i) or 5(c) will not be an event
               which constitutes an Illegality for the purposes of those
               Sections so that, following the occurrence of that event:

               (i)    neither Party A nor Party B will be entitled to designate
                      an Early Termination Date in respect of that Transaction
                      as a result of that event occurring;

               (ii)   payment by Party B in accordance with Part 5(3) of the
                      Schedule will continue to constitute proper performance of
                      its payment obligations in respect of that Transaction;
                      and

               (iii)  Party A's obligations in respect of that Transaction or
                      this Agreement will, to the extent permitted by law, be
                      unaffected by the occurrence of that event.

          (b)  Party A's limited rights in relation to Tax Event:

               (i)    Notwithstanding Part 1(c)(iii) of the Schedule, but
                      subject to Section 6(b)(ii), Party A may designate an
                      Early Termination Date if it is an Affected Party
                      following a Tax Event but only if the Relevant Note
                      Trustee has notified the parties in writing that it is
                      satisfied that all

                                                                              12
<PAGE>

                      amounts owing to the Relevant Noteholders will be paid in
                      full on the date on which the Relevant Notes are to be
                      redeemed.

               (ii)   If a Tax Event occurs where Party A is the Affected Party
                      and Party A is unable to transfer all its rights and
                      obligations under this Agreement and each Transaction to
                      an Affiliate pursuant to Section 6(b)(ii), Party A may, at
                      its cost, transfer all its rights, powers and privileges
                      and all its unperformed and future obligations under this
                      Agreement and each Transaction to any person provided
                      that:

                      (A)  each Rating Agency has confirmed in writing that the
                           transfer will not result in a reduction,
                           qualification or withdrawal of the credit ratings
                           then assigned by them to the Relevant Notes; and

                      (B)  that person has a long term credit rating assigned by
                           each Rating Agency of at least the long term credit
                           rating assigned by that Rating Agency to ML & Co. as
                           at the date of this Agreement or, otherwise, the
                           Standby Swap Provider provides its written consent to
                           the transfer.

          (7)  Termination:

               (a)    Termination by Trustee: Party B must not designate an
                      Early Termination Date without the prior written consent
                      of the Relevant Note Trustee.

               (b)    Termination by the Relevant Note Trustee: If following an
                      Event of Default or Termination Event, Party B does not
                      exercise its right to terminate a Transaction, then the
                      Relevant Note Trustee may designate an Early Termination
                      Date in relation to that Transaction as if it were a party
                      to this Agreement.

               (c)    Termination Payments by Party B: Notwithstanding Section
                      6(d)(ii), any amount calculated as being due by Party B in
                      respect of any Early Termination Date under Section 6(e)
                      will be payable on the Distribution Date immediately
                      following the date that such amount would otherwise be
                      payable under Section 6(d)(ii) (or will be payable on that
                      date if that date is a Distribution Date) except to the
                      extent that such amount may be satisfied from an earlier
                      distribution under the Security Trust Deed or the payment
                      of an upfront premium in respect of a Replacement Currency
                      Swap in accordance with Part 5(17)(b).

               (d)    Transfers to avoid Termination: Section 6(b)(ii) is
                      amended as follows:

                      (i)  The following sentence is added at the end of the
                           second paragraph:

                           "However, if Party A is that other party it must, if
                           so requested by the Manager, use reasonable efforts
                           (which will not require Party A to incur a loss,
                           excluding immaterial, incidental expenses) to make
                           such a transfer to an Affiliate provided the Rating
                           Agencies have given prior written confirmation to the
                           Manager that such a transfer will not result in a
                           reduction, qualification or withdrawal of the credit
                           ratings then assigned by them to the Relevant Notes."

                      (ii) The third paragraph is deleted and replaced with the
                           following:

                           "Any such transfer by a party under this Section
                           6(b)(ii) will be subject to and conditional upon the
                           prior written consent of the other party, which
                           consent will not be withheld:

                           (1)  where the other party is Party A, if Party A's
                                policies in effect

                                                                              13
<PAGE>

                                at such time would permit it to enter into
                                transactions with the transferee on the terms
                                proposed; or

                           (2)  where the other party is Party B, if the Rating
                                Agencies have confirmed in writing that such
                                transfer will not result in a reduction,
                                qualification or withdrawal of the credit
                                ratings then assigned by them to the Relevant
                                Notes.

               (e)    Notice of Event of Default. For the purposes of Section
                      6(a) and (b):

                      (i)  Party A may only provide a notice specifying an Event
                           of Default to Party B as the Defaulting Party and may
                           only designate an Early Termination Date following a
                           Termination Event where Party A or Party B (or both)
                           is the Affected Party or the Burdened Party; and

                      (ii) the Standby Swap Provider may not issue a notice
                           specifying an Event of Default or designating an
                           Early Termination Date (except as Party A on or after
                           the Novation Date).

          (8)  No Set-Off: Section 6(e) is amended by deleting the last sentence
               of the first paragraph.

          (9)  Transfer:  Section 7 is replaced with:

               "7.  Essential term: Transfer

               (a)  Neither the interests nor the obligations of any party in or
                    under this Agreement (including any Transaction) are capable
                    of being assigned or transferred (whether at law, in equity
                    or otherwise), charged or the subject of any trust (other
                    than the Series Trust or the trusts created pursuant to the
                    Credit Support Document in relation to Party B) or other
                    fiduciary obligation. Any action by a party which purports
                    to do any of these things is void.

               (b)  Nothing in this Section 7:

                    (i)    restricts a transfer by a party after the other
                           parties have agreed to the variation of this
                           Agreement in accordance with Part 5(20) to the extent
                           necessary to permit such transfer;

                    (ii)   restricts a novation of the interests and obligations
                           of a party in or under this Agreement (including any
                           Transaction) for the purposes of giving effect to a
                           transfer under Section 6(b)(ii);

                    (iii)  restricts a transfer by a party of all or any part of
                           its interest in any amount payable to it from a
                           Defaulting Party under Section 6(e);

                    (iv)   restricts a transfer by Party B or the Manager to a
                           Substitute Trustee or Substitute Manager,
                           respectively, in accordance with the Master Trust
                           Deed;

                    (v)    restricts Party B from granting security over a
                           Transaction or this Agreement pursuant to any Credit
                           Support Document in relation to Party B; or

                    (vi)   limits Parts 5(6)(b)(ii), 5(22), 5(23), 5(24) or
                           5(25).

             (c)    Each party acknowledges that the other party enters into
                    this Agreement and each Transaction on the basis that this
                    Section 7 must be strictly observed and is essential to the
                    terms of this Agreement (including each Transaction)."

                                                                              14
<PAGE>

(10)  Facsimile Transmission:  In Section 12:

      (a)  delete Section 12(a)(ii); and

      (b)  replace Section 12(a)(iii) with:

           "(iii) if sent by facsimile transmission:

                  (A)  in the case of any notice or other communication pursuant
                       to Parts 5(23), (24) or (25), on the date that
                       transmission is received by a responsible employee of the
                       recipient in legible form (it being agreed that the
                       burden of proving receipt will be on the sender and will
                       not be met by a transmission report generated by the
                       sender's facsimile machine); or

                  (B)  otherwise, on the date a transmission report is produced
                       by the machine from which the facsimile was sent which
                       indicates that the facsimile was sent in its entirety to
                       the facsimile number of the recipient notified for the
                       purpose of this Section unless the recipient notifies the
                       sender within one Business Day of the facsimile being
                       sent that the facsimile was not received in its entirety
                       in legible form;".

(11)  Definitions

      In this Agreement, unless the contrary intention appears:

      (a)  Master Trust Deed: subject to Part 5(11)(h), unless defined in this
           Agreement words and phrases defined in the Master Trust Deed, and the
           Series Supplement have the same meaning in this Agreement. Subject to
           Part 5(11)(h), where there is any inconsistency in a definition
           between this Agreement (on the one hand) and the Master Trust Deed or
           the Series Supplement (on the other hand), this Agreement prevails.
           Where there is any inconsistency in a definition between the Master
           Trust Deed (on the one hand) and the Series Supplement (on the other
           hand), the Series Supplement prevails over the Master Trust Deed in
           respect of the Series Trust. Where words or phrases used but not
           defined in this Agreement are defined in the Master Trust Deed in
           relation to a Series Trust (as defined in the Master Trust Deed) such
           words or phrases are to be construed in this Agreement, where
           necessary, as being used only in relation to the Series Trust;

      (b)  Trustee Capacity:

           (i)   a reference to Party B is a reference to Party B in its
                 capacity as trustee of the relevant Series Trust only, and in
                 no other capacity; and

           (ii)  a reference to the undertaking, assets, business or money of
                 Party B is a reference to the undertaking, assets, business or
                 money of Party B in the capacity referred to in paragraph
                 11(b)(i) only;

      (c)  Definitions: in Section 14:

           (i)   replace the definitions of "Affected Transactions" and
                 "Local Business Day" with the following:

                 ""Affected Transactions" means, with respect to a
                 Termination Event, all Transactions."

                 ""Local Business Day" has the same meaning as "Business Day"."

                                                                              15
<PAGE>

           (ii)  insert the following new definitions:

                 "BBSW" or "AUD-BBR-BBSW" in relation to a Calculation Period
                 means the rate appearing at approximately 10.00 am Sydney time
                 on the Reset Date for that Calculation Period on the Reuters
                 Screen page "BBSW" as being the average of the mean buying and
                 selling rates appearing on that page for a bill of exchange
                 having a tenor of three months. If:

                 (a)  on that Reset Date fewer than 4 banks are quoted on the
                      Reuters Screen page "BBSW"; or

                 (b)  for any other reason the rate for that day cannot be
                      determined in accordance with the foregoing procedures,

                  then "BBSW" or "AUD-BBR-BBSW" means such rate as is specified
                  by the Calculation Agent having regard to comparable indices
                  then available.

                  "Credit Support Annex" means the Credit Support Annex annexed
                  to this Agreement.

                  "Distribution Date" has the meaning given in Section 16.

                  "Inconvertibility Event" means any event beyond the control of
                  CBA that makes it impossible for CBA to convert to U.S.
                  Dollars through customary legal channels an amount of
                  Australian Dollars sufficient to fulfil CBA's obligations
                  under this Agreement and each Transaction.

                  "Joint Ratings" means the highest possible jointly supported
                  short term credit rating or long term credit rating, as
                  applicable, that can be determined in relation to Party A and
                  the Standby Swap Provider by Moody's, S&P and Fitch in
                  accordance with Moody's, S&P's and Fitch's respective
                  approaches to jointly supported obligations provided that if
                  either Party A or the Standby Swap Provider has a long term
                  credit rating of less than BBB from S&P the Joint Ratings from
                  S&P will be the credit ratings of the other party.

                  "Master Trust Deed" means the Master Trust Deed date 8 October
                  1997 between Party B and the Manager, as amended from time to
                  time.

                  "MLIA/CBA ISDA Master Agreement" means the ISDA Master
                  Agreement dated 20 November 1995 between MLIA and CBA, as
                  amended from time to time.

                  "Novation Date" means the date upon which the obligations of
                  MLIA as Party A under this Agreement and each Transaction are
                  novated to the Standby Swap Provider pursuant to Part
                  5(24)(c).

                  "Prescribed Rating Period" means in relation to the Joint
                  Ratings determined by the Rating Agencies:

                  (a)  a period of 30 Business Days from the date of
                       determination of the relevant credit rating where any
                       Joint Rating immediately after that determination is less
                       than the relevant Prescribed Rating but greater than or
                       equal to a short term credit rating of A-1 by S&P and
                       long term credit ratings of A- by S&P, A3 by Moody's and
                       A- by Fitch, as the case may be; and

                                                                              16
<PAGE>

                  (b)  a period of 5 Business Days from the date of
                       determination of the relevant credit rating where any
                       Joint Rating immediately after that determination is less
                       than a short term credit rating of A-1 by S&P or less
                       than a long term credit rating of A- by S&P, A3 by
                       Moody's and A- by Fitch.

                  "Prescribed Ratings" means a short term credit rating of A-1
                  by S&P or a long term credit rating of AA- by S&P and long
                  term credit ratings of AA- by Fitch and A2 by Moody's.

                  "Relevant Calculation Amount" has the meaning given in Section
                  16.

                  "Relevant Notes" has the meaning given in Section 16.

                  "Relevant Note Trustee" has the meaning given in Section 16.

                  "Relevant Noteholders" has the meaning given in Section 16.

                  "Scheduled Maturity Date" has the meaning given in Section
                  16.

                  "Security Trust Deed" has the meaning given in Section 16.

                  "Series Supplement" has the meaning given in Section 16..

                  "Series Trust" has the meaning given in Section 16.

      (d)  Interpretation:

             (i)   references to time are references to Sydney time;

             (ii)  a reference to "wilful default" in relation to Party B means,
                   subject to Part 5(11)(d)(iii) of this Schedule, any wilful
                   failure by Party B to comply with, or wilful breach by Party
                   B of, any of its obligations under any Transaction Document,
                   other than a failure or breach which:

                   A.  (1)  arises as a result of a breach of a Transaction
                            Document by a person other than:

                            (a)  Party B; or

                            (b)  any other person referred to in Part
                                 5(11)(d)(iii) of this Schedule; and

                       (2)  the performance of the action (the non-performance
                            of which gave rise to such breach) is a
                            precondition to Party B performing the said
                            obligation;

                   B.  is in accordance with a lawful court order or direction
                       or required by law; or

                   C.  is in accordance with any proper instruction or direction
                       of the Investors given at a meeting convened under the
                       Master Trust Deed;

             (iii) a reference to the "fraud", "negligence" or "wilful default"
                   of Party B means the fraud, negligence or wilful default of
                   Party B and of its officers, employees, agents and any other
                   person where Party B is liable for the acts or omissions of
                   such other person under the terms of any Transaction
                   Document;

                                                                              17
<PAGE>

             (iv)  a reference to "neither party" will be construed as a
                   reference to "no party";

             (v)   a reference to "other party" will be construed as a reference
                   to "other parties"; and

             (vi)  a reference to a credit rating of MLIA means the higher of
                   the relevant credit ratings of MLIA and M L & Co.

        (e)  ISDA Definitions: The 1991 ISDA Definitions (as published by the
             International Swaps and Derivatives Association, Inc ("ISDA")), as
             supplemented by the 1998 Supplement to the 1991 ISDA Definitions
             (as published by ISDA) (the "1991 ISDA Definitions") as at the date
             of this Agreement are incorporated into this Agreement and each
             Confirmation.

        (f)  Inconsistency: Subject to Part 5(11)(a), unless specified
             otherwise, in the event of any inconsistency between any two or
             more of the following documents in respect of a Transaction they
             will take precedence over each other in the following order in
             respect of that Transaction:

             (i)   any Confirmation;

             (ii)  this Schedule and Section 13 ("Elections and Variables") of
                   the Credit Support Annex (as applicable);

             (iii) the 1991 ISDA Definitions; and

             (iv)  the printed form of the 1992 ISDA Master Agreement and the
                   printed form of the ISDA Credit Support Annex which form part
                   of this Agreement.

        (g)  Swap Transaction: Any reference to a:

             (i)   "Swap Transaction" in the 1991 ISDA Definitions is deemed to
                   be a reference to a "Transaction" for the purpose of
                   interpreting this Agreement or any Confirmation; and

             (ii)  "Transaction" in this Agreement or any Confirmation is
                   deemed to be a reference to a "Swap Transaction" for the
                   purpose of interpreting the 1991 ISDA Definitions.

        (h)  Incorporated Definitions and other Transaction Documents and
             provisions:  Where in this Agreement a word or expression is
             defined by reference to its meaning in another Transaction Document
             or there is a reference to another Transaction Document or to a
             provision of another Transaction Document, any amendment to the
             meaning of that word or expression or to that other Transaction
             Document or provision (as the case may be) will be of no effect for
             the purposes of this Agreement unless and until the amendment is
             consented to by the parties to this Agreement.

(12)  Limitation of Liability: Insert the following as Sections 15 and 16,
      after Section 14:

      "15.   Party B's Limitation of Liability

             (a)  (Limitation on Party B's liability): Party B enters into this
                  Agreement only in its capacity as trustee of the relevant
                  Series Trust and in no other capacity. A liability incurred by
                  Party B acting in its capacity as trustee of the relevant
                  Series Trust arising under or in connection with this
                  Agreement is limited to and can be enforced against Party B
                  only to the

                                                                              18
<PAGE>

                  extent to which it can be satisfied out of the Assets of that
                  Series Trust out of which Party B is actually indemnified for
                  the liability. This limitation of Party B's liability applies
                  despite any other provision of this Agreement (other than
                  Section 15(c)) and extends to all liabilities and obligations
                  of Party B in any way connected with any representation,
                  warranty, conduct, omission, agreement or transaction related
                  to this Agreement.

             (b)  (Claims against Party B): The parties other than Party B may
                  not sue Party B in respect of liabilities incurred by Party B
                  acting in its capacity as trustee of a Series Trust in any
                  other capacity other than as trustee of that Series Trust,
                  including seeking the appointment of a receiver (except in
                  relation to Assets of that Series Trust), or a liquidator, or
                  an administrator, or any similar person to Party B or prove in
                  any liquidation, administration or similar arrangements of or
                  affecting Party B (except in relation to the Assets of that
                  Series Trust).

             (c)  (Breach of trust): The provisions of this Section 15 will not
                  apply to any obligation or liability of Party B to the extent
                  that it is not satisfied because under the Master Trust Deed,
                  the corresponding Series Supplement or any other corresponding
                  Transaction Document or by operation of law there is a
                  reduction in the extent of Party B's indemnification out of
                  the Assets of the relevant Series Trust, as a result of Party
                  B's fraud, negligence or wilful default.

             (d)  (Acts or omissions): It is acknowledged that the Relevant
                  Parties are responsible under the corresponding Transaction
                  Documents for performing a variety of obligations relating to
                  the relevant Series Trust. No act or omission of Party B
                  (including any related failure to satisfy its obligations or
                  any breach of representation or warranty under this Agreement)
                  will be considered fraudulent, negligent or a wilful default
                  of Party B for the purpose of paragraph (c) of this Section
                  |15 to the extent to which the act or omission was caused or
                  contributed to by any failure by any such Relevant Person or
                  any other person appointed by Party B under such a Transaction
                  Document (other than a person whose acts or omissions Party B
                  is liable for in accordance with any such Transaction
                  Document) to fulfil its obligations relating to the relevant
                  Series Trust or by any other act or omission of the Manager or
                  the Servicer or any other such person.

             (e)  (No obligation): Party B is not obliged to enter into any
             commitment or obligation under this Agreement or any Transaction
             Document (including incur any further liability) unless Party B's
             liability is limited in a manner which is consistent with this
             Section |15 or otherwise in a manner satisfactory to Party B in its
             absolute discretion.

      "16.   Segregation

             Party B will enter into each Transaction as trustee of a Series
             Trust. Each Confirmation in relation to a Transaction must specify
             the name of the Series Trust to which the Transaction relates.
             Notwithstanding anything else in this Agreement, but without
             limiting the generality of Section 15, the provisions of this
             Agreement (including, without limitation, the Credit Support Annex)
             shall have effect severally in respect of each Series Trust and
             shall be enforceable by or against Party B in its capacity as
             trustee of the relevant Series Trust as though a separate Agreement
             applied between Party A, Party B (in its capacity as trustee of the
             Series Trust specified in the relevant Confirmation), the Manager
             and the Standby Swap Provider for each of Party B's said several
             capacities, to the intent that (inter alia):

                                                                              19
<PAGE>

             (a)  (References to Party B): unless the context indicates a
                  contrary intention, each reference to "Party B" in this
                  Agreement shall be construed as a several reference to Party B
                  in its respective capacities as trustee of each Series Trust;

             (b)  (Separate Agreements): this Master Agreement including,
                  without limitation, this Schedule and the Credit Support Annex
                  together with each Confirmation relating to a particular
                  Series Trust will form a single separate agreement between
                  Party A, the Manager, the Standby Swap Provider and Party B in
                  its capacity as trustee of that Series Trust and references to
                  the respective obligations (including references to payment
                  obligations generally and in the context of provisions for the
                  netting of payments and the calculation of amounts due on
                  early termination) of Party A, the Manager, the Standby Swap
                  Provider or Party B shall be construed accordingly as a
                  several reference to each mutual set of obligations arising
                  under each such separate agreement between Party A, the
                  Manager, the Standby Swap Provider and Party B in its several
                  capacity as trustee of the relevant Series Trust;

             (c)  (Representations): representations made and agreements entered
                  by the parties under this Agreement are made and entered
                  severally by Party B in its respective capacities as trustee
                  of each Series Trust and in respect of the relevant Series
                  Trust and may be enforced by Party B against Party A, the
                  Manager or the Standby Swap Provider severally in Party B's
                  said several capacities (and by Party A, the Manager or the
                  Standby Swap Provider against Party B in Party B's said
                  several capacities);

             (d)  (Termination): rights of termination, and obligations and
                  entitlements consequent upon termination, only accrue to Party
                  A against Party B severally in Party B's respective capacities
                  as trustee of each Series Trust, and only accrue to Party B
                  against Party A severally in Party B's said several
                  capacities;

             (e)  (Events of Default and Termination Events): without limiting
                  Section 15, the occurrence of an Event of Default or
                  Termination Event in respect of one Series Trust shall not in
                  itself constitute an Event of Default or Termination Event in
                  respect of any other Series Trust; and

             (f)  (Definitions):

                  (i) the term "Series Trust":

                      (A)  in this Section 16, means each Series Trust (as
                           defined in the Master Trust Deed) specified or to be
                           specified, as the context requires, as the relevant
                           Series Trust in the Confirmation for a Transaction;
                           and

                      (B)  elsewhere in this Agreement, means each such Series
                           Trust severally in accordance with the preceding
                           provisions of this Section 16;

                 (ii) the term "Transaction":

                      (A)  in this Section 16, means each Transaction governed
                           by this Agreement; and

                      (B)  elsewhere in this Agreement, means each such
                           Transaction entered into by the trustee as Trustee

                                                                              20
<PAGE>

                           of the relevant Series Trust;

                (iii) the term "Agreement":

                           (A)  in this Section 16 means this Master Agreement,
                                including, without limitation, this Schedule and
                                the Credit Support Annex, and all Confirmations
                                governed by this Master Agreement; and

                           (B)  elsewhere, means the separate agreement referred
                                to in Section 16(b) in respect of each
                                particular Series Trust;

                 (iv) the terms "Distribution Date", "Relevant Calculation
                      Amount", "Relevant Note Trustee", "Relevant Notes",
                      "Relevant Noteholders", "Scheduled Maturity Date",
                      "Security Trust Deed" and "Series Supplement" in this
                      Agreement to the extent that it applies in relation to a
                      Series Trust have the respective meanings given to them in
                      the Confirmations for the Transactions of that Series
                      Trust."

(13)  Further Assurances: Each party will, upon request by the other party (the
      "requesting party") at the expense of the requesting party, perform all
      such acts and execute all such agreements, assurances and other documents
      and instruments as the requesting party reasonably requires (and, in the
      case of Party B, are within the powers granted to Party B under the Master
      Trust Deed) to assure and confirm the rights and powers afforded, created
      or intended to be afforded or created, under or in relation to this
      Agreement and each Transaction or other dealing which occurs under or is
      contemplated by it.

(14)  Procedures for Entering into Transactions

      (a)  With respect to each Transaction entered into pursuant to this
           Agreement and for the purposes of Section 9(e)(ii), Party A will, by
           or promptly after the relevant Trade Date, send Party B, the Standby
           Swap Provider and the Manager a Confirmation substantially in the
           form set out in Annexure 1 (or in such other form as may be agreed
           between Party A, Party B, the Standby Swap Provider and the Manager),
           and Party B, the Standby Swap Provider and the Manager must promptly
           then confirm the accuracy of and sign and return, or request the
           correction of, such Confirmation; and

      (b)  Party B will enter into each Transaction in its capacity as trustee
           of the Series Trust.

(15)  Authorised Officer: Each party will be entitled to assume, in the absence
      of any knowledge to the contrary, that any Confirmation, notice or other
      written communication, which is issued in respect of this Agreement and
      which is purported to be signed on behalf of another party by a person
      specified in the certificate provided by that other party under Part 3(b),
      is authorised by that other party.

(16)  Recorded Conversations: Each party:

      (a)  consents to the electronic recording of its telephone conversations
           with the other party (or any of its associated persons) with or
           without the use of an automatic tone warning device;

      (b)  will provide transcripts of such recordings (if any) upon reasonable
           request by the other party (at the reasonable cost of the party
           requesting); and

      (c)  acknowledges that neither is obligated to maintain copies of such
           recordings and transcripts for the benefit of the other party.

                                                                              21
<PAGE>

(17)  Replacement Currency Swap Agreement:

      (a)  If any Transaction under this Agreement is terminated prior to the
           day upon which the Relevant Notes are redeemed in full, Party B may,
           at the direction of the Manager, enter into one or more currency
           swaps which replace that Transaction (collectively a "Replacement
           Currency Swap") provided that:

           (i)  the Rating Agencies confirm in writing that the entry into the
                Replacement Currency Swap by Party B does not result in a
                reduction, qualification or withdrawal of the credit ratings
                then assigned by them to the Relevant Notes; and

           (ii) the liability of Party B under the Replacement Currency Swap is
                limited to at least the same extent that its liability is
                limited under that Transaction.

      (b)  If Party B enters into a Replacement Currency Swap pursuant to
           paragraph (a) and a Settlement Amount is payable by Party B to Party
           A upon termination of the Transaction referred to in Part 5(17)(a),
           Party B must direct the Replacement Currency Swap provider to pay any
           upfront premium to enter into the Replacement Currency Swap due to
           Party B directly to Party A in satisfaction of and to the extent of
           Party B's obligation to pay the Settlement Amount to Party A, and to
           the extent such premium is not greater than or equal to the
           Settlement Amount, the balance may be satisfied by Party B as an
           Expense.

      (c)  If Party B enters into a Replacement Currency Swap pursuant to
           paragraph (a) and a Settlement Amount is payable by Party A to Party
           B upon termination of the Transaction referred to in Part 5(17)(a),
           Party B may direct Party A to pay that amount to the Replacement
           Currency Swap provider in satisfaction of or towards and to the
           extent of Party B's obligation (if any) to pay an upfront premium to
           the Replacement Currency Swap provider to enter into the Replacement
           Currency Swap.

      (d)  The obligations of Party B (and the rights of Party A) under this
           Part 5(17) will survive the termination of this Agreement.

(18)  Knowledge or Awareness:  Subject to Section 12(a), each party will only be
      considered to have knowledge or awareness of, or notice of, a thing or
      grounds to believe anything by virtue of the officers of that party or any
      Related Body Corporate of that party which have the day to day
      responsibility for the administration or management of that party's (or a
      Related Body Corporate of that party's) obligations in relation to the
      Series Trust or the Transactions entered into under this Agreement having
      actual knowledge, actual awareness or actual notice of that thing, or
      grounds or reason to believe that thing (and similar references will be
      interpreted in this way).

(19)  Restrictions on Party B's Rights:  Party B must at all times act in
      accordance with the instructions of the Manager in relation to this
      Agreement.

(20)  Amendment to this Agreement: None of Party A, Party B, the Standby Swap
      Provider or the Manager may amend this Agreement unless the Rating
      Agencies have confirmed in writing that the proposed amendment will not
      result in a reduction, qualification or withdrawal of the credit ratings
      then assigned by them to the Relevant Notes.

(21)  Appointment of Manager: Party B hereby exclusively appoints the Manager as
      its attorney to act on Party B's behalf and exercise all rights and powers
      of Party B with respect to this Agreement.  Without limiting the
      generality of the foregoing, the Manager may issue and receive on behalf
      of Party B all notices, certificates and other communications to or by
      Party A under this Agreement until such time as Party B serves written
      notice on Party A of the

                                                                              22
<PAGE>

      revocation of the Manager's authority to act on behalf of Party B in
      accordance with this Part 5(21) of the Schedule.

(22)  Ratings Downgrade:

      (a)  (Downgrade): If, as a result of the reduction or withdrawal of the
           credit rating of Party A or the Standby Swap Provider a Joint Rating
           is less than the relevant Prescribed Rating, Party A must by the
           expiry of the Prescribed Rating Period in relation to the credit
           ratings assigned by the Rating Agencies to Party A and the Standby
           Swap Provider at that time (or such greater period as is agreed to in
           writing by each relevant Rating Agency), at its cost alone and at its
           election:

           (i)   provided that the short term Joint Rating by S&P is greater
                 than or equal to A-1 or the long term Joint Rating by S&P is
                 greater than or equal to A- and the long term Joint Rating by
                 Fitch is greater than or equal to A-, lodge collateral in
                 accordance with the Credit Support Annex in an amount equal to
                 the Collateral Amount as defined in Part 5 (22)(b); or

           (ii)  enter into, and procure that the Standby Swap Provider enters
                 into, an agreement novating Party A's and/or the Standby Swap
                 Providers' rights and obligations under this Agreement and each
                 Transaction to a replacement counterparty acceptable to the
                 Manager and the Standby Swap Provider and which the Rating
                 Agencies confirm in writing will not result in a reduction,
                 qualification or withdrawal of the credit ratings then assigned
                 by them to the Relevant Notes; or

           (iii) enter into, or procure that the Standby Swap Provider enters
                 into, such other arrangements in respect of each Transaction
                 which the Rating Agencies confirm in writing will not result in
                 a reduction, qualification or withdrawal of the credit ratings
                 then assigned by them to the Relevant Notes.

           Notwithstanding that Party A has elected to satisfy its obligations
           pursuant to this Part 5(22)(a) in a particular manner, it may
           subsequently and from time to time vary the manner in which it
           satisfies its obligations pursuant to this Part 5(22)(a) (but will
           not be entitled to any additional grace period in relation to such a
           variation).

      (b)  (Collateral Amount): For the purpose of this Part 5(22) the
           Collateral Amount will be an amount equal to the greater of the
           following:

           (i)   zero;

           (ii)  CCR; and

           (iii) an amount acceptable to Moody's and Fitch and sufficient to
                 maintain the credit rating assigned to the Relevant Notes by
                 Moody's and Fitch immediately prior to the review of the Joint
                 Rating.

           Where:

           CCR = CR x 1.030

           CR = MTM + VB

           MTM means the aggregate mark-to-market value (whether positive or
           negative) of each Transaction determined in accordance with Part
           5(22)(c) no earlier than 3 Business Days prior to the date that the
           Collateral Amount is lodged.

           VB means the volatility buffer, being the value calculated by
           multiplying

                                                                              23
<PAGE>

           the Relevant Calculation Amount as at the most recent Distribution
           Date by the relevant percentage obtained from the following table:

<TABLE>
<CAPTION>
             ------------------------------------------------------------------------------------------------------------
             Party A's and the         Where the period between   Where the period between   Where the period between
             Standby Swap              the date of                the date of                the date of
             Provider's jointly        recalculation and the      recalculation and the      recalculation and the
             supported long term       Scheduled Maturity Date    Scheduled Maturity Date    Scheduled Maturity Date
             credit rating by S&P      is less than or equal to   is greater than 5 years    is greater than 10 years
                                       5 years                    and less than or equal
                                                                  to 10 year
<S>                                    <C>                         <C>                        <C>
             -----------------------------------------------------------------------------------------------------------
             A+                        1.05                       1.75                       3.0
             -----------------------------------------------------------------------------------------------------------
             A                         1.35                       2.45                       4.5
             -----------------------------------------------------------------------------------------------------------
             A-                        1.5                        3.15                       6
             -----------------------------------------------------------------------------------------------------------
</TABLE>

      (c)  (Mark to Market Value): Party A must calculate the mark-to-market
           value of each Transaction by obtaining 2 bids from counterparties
           with the Prescribed Ratings willing to provide each Transaction in
           the absence of Party A. The mark-to-market value may be a positive or
           a negative amount. A bid has a negative value if the payment to be
           made is from the counterparty to Party A and has a positive value if
           the payment to be made is from Party A to the counterparty. The mark-
           to-market value is the higher of the bids (on the basis that any bid
           of a positive value is higher than any bid of a negative value).

      (d)  (Recalculation): Party A must recalculate the Collateral Amount
           (including the CCR and the mark-to-market value) on each Valuation
           Date. If:

           (i)  the Value on such Valuation Date of all Posted Credit Support
                held by the Secured Party is less than the recalculated
                Collateral Amount, the difference is the Delivery Amount in
                relation to that Valuation Date; or

           (ii) the Value on such Valuation Date of all Posted Credit Support
                held by the Secured Party is greater than the recalculated
                Collateral Amount, the difference is the Return Amount in
                relation to that Valuation Date.

      (e)  (Definitions): For the purposes of this Part 5(22) "Delivery
           Amount", "Posted Credit Support", "Secured Party", "Value" and
           "Valuation Date" have the same meaning as in the Credit Support
           Annex.

(23)  Transfer: Notwithstanding the provisions of Section 7, MLIA as Party A may
      transfer all its rights powers and privileges and all its unperformed and
      future obligations under this Agreement and each Transaction to any
      subsidiary of ML & Co ("Transferee") by delivering to the Standby Swap
      Provider, Party B and the Manager a notice expressed to be given under
      this provision signed by both MLIA as Party A and the Transferee and an
      executed guarantee of the Transferee's transferred obligations in the form
      of Annexure 2.  Upon delivery of those documents to Party B:

      (a)  (Party A's rights terminate): MLIA's rights powers privileges and
           obligations as Party A under this Agreement and each Transaction
           terminate;

      (b)  (Transfer and Assumption): MLIA will be taken to have transferred its
           rights powers and privileges under this Agreement and each
           Transaction to the Transferee and the Transferee will be taken to
           have assumed obligations equivalent to those Party A had under this
           Agreement and each Transaction;

      (c)  (Release): Party B will be taken to have released MLIA as Party A
           from all its unperformed and future obligations under this Agreement
           and each Transaction; and

      (d)  (Documents): this Agreement and the Confirmation relating to each
           Transaction shall be construed as if the Transferee was a party to it
           in place of MLIA as Party A.

                                                                              24
<PAGE>

      A Transferee may utilise this provision as Party A. A transfer under this
      Part 5(23) will be of no force or effect until each Rating Agency confirms
      in writing that such transfer will not result in a reduction,
      qualification or withdrawal of the credit ratings then assigned by them to
      the Relevant Notes and until the Standby Swap Provider has given its
      written consent to such a transfer (such consent not to be withheld if the
      Transferee is willing to enter into collateral arrangements between the
      Transferee and the Standby Swap Provider on substantially the same terms
      as have been agreed between MLIA and the Standby Swap Provider in the
      MLIA/CBA ISDA Master Agreement).

(24)  Standby Swap Provider:

      (a)  (Commitment): Notwithstanding any other provision in this Agreement
           to the contrary, if MLIA as Party A fails to:

           (i)   make, when due, any payment required to be made by it to Party
                 B under a Transaction; or

           (ii)  comply with any obligation under Part 5(22) within the required
                 period,

           then:

           (iii) as soon as practicable following such failure but, in relation
                 to a failure to pay under a Transaction, in any event no later
                 than 11.00 am (New York time) on the due date for such payment
                 or, in relation to a failure to comply with an obligation under
                 Part 5(22), no later than the Business Day following the due
                 date for compliance with such obligation, Party B must notify
                 MLIA as Party A and the Standby Swap Provider in writing of
                 such failure and:

                 (A)  the amount of the defaulted payment and the basis of
                      calculation of the defaulted payment; or

                 (B)  details of the failure to comply with the obligation under
                      Part 5(22),

                 as the case may be; and

           (iv)  as soon as reasonably practicable after its receipt of such
                 notice (and in any event, in relation to a failure to pay under
                 a Transaction, no later than 1.30 pm (New York time) on the due
                 date for such payment, and, in relation to a failure to comply
                 with an obligation under Part 5(22), no later than 3 Business
                 Days after the failure to comply with such obligation,
                 provided, in each case, that notice has been given by Party B
                 by the required times in accordance with Part 5(24)(a)(iii))
                 the Standby Swap Provider must:

                 (A)  in relation to a failure to pay under a Transaction, pay
                      to Party B the amount then owing by MLIA as Party A to
                      Party B under that Transaction by depositing such amount
                      into the Collections Account in cleared funds; and

                 (B)  in relation to a failure to comply with an obligation
                      under Part 5(22), satisfy the obligations of MLIA as Party
                      A under Part 5(22).

            (b)  (Reimbursement): If on any day the Standby Swap Provider:

                 (i)  makes a payment pursuant to Part 5(24)(a)(iv)(A), MLIA as
                      Party A must by 2.00 pm (New York time) on the next

                                                                              25
<PAGE>

                      following Business Day (or such other time as the Standby
                      Swap Provider may agree in writing) pay to the Standby
                      Swap Provider an amount equal to that payment by
                      depositing such amount into the account which the Standby
                      Swap Provider nominates for this purpose in cleared funds;
                      or

                (ii)  satisfies the obligations of MLIA as Party A pursuant to
                      Part 5(24)(a)(iv)(B), MLIA as Party A must:

                      (A)  within 3 Business Days, fulfill its obligations under
                           Part 5(22) such that any collateral lodged by the
                           Standby Swap Provider pursuant to Part 5(22)(a)(i) or
                           any other arrangement made by the Standby Swap
                           Provider pursuant to Part 5(22)(a)(iii) is returned
                           to the Standby Swap Provider or will cease (but MLIA
                           as Party A will have no obligations to the Standby
                           Swap Provider under this Part 5(24)(b)(ii)(A) in
                           relation to any novation pursuant to Part
                           5(22)(a)(ii)); and

                      (B)  upon demand by the Standby Swap Provider, indemnify
                           the Standby Swap Provider from and against any cost
                           or liability incurred by the Standby Swap Provider in
                           satisfying those obligations.

                 (c)  (Novation): If:

                      (i)  MLIA as Party A defaults in its payment obligations
                           under Part 5(24)(b)(i) or (b)(ii)(B) for reasons
                           other than solely a technical, computer or similar
                           error outside the control of Party A and such default
                           is not remedied on or before one Business Day after
                           such failure; or

                     (ii)  MLIA as Party A fails to fulfill its obligations
                           under Part 5(24)(b)(ii)(A),

                     then:

                     (iv)  MLIA's rights, powers, privileges and obligations as
                           Party A under this Agreement and each Transaction
                           terminate other than its rights, powers, privileges
                           and obligations pursuant to Part 5(24)(d) and
                           Paragraph 13(m)(vii) of the Credit Support Annex;

                     (v)   subject to Part 5(24)(c)(vii), MLIA will be taken to
                           have transferred its rights powers and privileges as
                           Party A under this Agreement and each Transaction to
                           the Standby Swap Provider and the Standby Swap
                           Provider will be taken to have assumed obligations
                           equivalent to those that MLIA as Party A had under
                           this Agreement and each Transaction;

                     (vi)  Party B and the Standby Swap Provider will be taken
                           to have released MLIA as Party A from all its
                           unperformed and future obligations under this
                           Agreement and each Transaction other than its present
                           and future obligations pursuant to Part 5(24)(d);

                     (vii) this Agreement and the Confirmation relating to each

                                                                              26
<PAGE>

                           Transaction shall be construed as if the Standby Swap
                           Provider was a party to it in place of Party A except
                           that:

                           (A)    references to "MLIA as Party A" will not apply
                                  to the Standby Swap Provider as Party A;
                           (B)    references to any jointly supported credit
                                  rating of Party A and the Standby Swap
                                  Provider will be deemed to be references to
                                  the relevant credit rating of the Standby Swap
                                  Provider;
                           (C)    without limiting Part 5(24)(c)(vii)(A),  this
                                  Part 5(24) and Paragraph 13(m)(vii) of the
                                  Credit Support Annex will not apply to the
                                  Standby Swap Provider as Party A;
                           (D)    the Standby Swap Provider must (if it has not
                                  already done so) satisfy the obligations of
                                  Party A under Part 5(22)(a) within 10 Business
                                  Days  of the Novation Date on the basis that
                                  any collateral lodged by MLIA as Party A or
                                  any other arrangements made by MLIA as Party A
                                  pursuant to Part 5(22)(a)(iii) will be
                                  returned to MLIA as Party A or will cease (but
                                  such collateral will only be returned and such
                                  arrangements will only cease upon compliance
                                  by the Standby Swap Provider with its
                                  obligations under this Part 5(24)(c)(vii)(D)
                                  and otherwise, where applicable, in accordance
                                  with Paragraph 13(m)(vii) of the Credit
                                  Support Annex or the terms of such
                                  arrangements).

             (d)    (Termination Payment): Following novation under Part
                    5(24)(c) MLIA as Party A must pay the Standby Swap Provider
                    or the Standby Swap Provider must pay MLIA as Party A an
                    amount (the "Novation Settlement Amount") being:

                    (i)    in the case of payment by MLIA as Party A to the
                           Standby Swap Provider, an amount equal to the amount
                           (if any) that would be payable by Party A to Party B;
                           and

                    (ii)   in the case of payment by the Standby Swap Provider
                           to MLIA as Party A, an amount equal to the amount (if
                           any) that would be payable by Party B to Party A,

                    if each Transaction had been terminated, calculated and
                    payable in accordance with Sections 6(d) and (e) on the
                    basis that:

                    (i)    the Novation Date is the Early Termination Date and
                           the Novation Settlement Amount is due and payable on
                           the day that notice of the amount payable is
                           effective;

                    (ii)   the Early Termination Date has resulted from an Event
                           of Default in respect of which Party A is the
                           Defaulting Party;

                    (iii)  all calculations and determinations which would have
                           been done by Party B are done by the Standby Swap
                           Provider and all calculations and determination that
                           would have been done by Party A are done by MLIA;

                    (iv)   a reference to Unpaid Amounts owing to Party B is a
                           reference to such amounts payable by Party A to the
                           Standby

                                                                              27
<PAGE>

                           Swap Provider pursuant to Part 5(24)(b) and
                           (e) and there are no Unpaid Amounts owing to Party A;

                    (v)    without limiting the foregoing, for the purposes of
                           the definition of "Market Quotation" in Section 14
                           each Reference Market-maker would be required, upon
                           entering into a Replacement Transaction, to fulfill
                           the obligations of Party A under Part 5(22)(a) and to
                           comply with Section 2(d) as amended by Part
                           (5)(1)(e); and

                    (vi)   the Termination Currency is U.S. Dollars.

             (e)    (Default Interest):  If MLIA as Party A defaults in the
                    performance of any payment obligations under Part 5(24)(b)
                    or Part 5(24)(d), it must pay interest (before as well as
                    after judgment) on the overdue amount to the Standby Swap
                    Provider on demand in the same currency as such overdue
                    amount, for the period from (and including) the original due
                    date for payment to (but excluding) the date of actual
                    payment, at the Default Rate.  Such interest will be
                    calculated on the basis of daily compounding and the actual
                    number of days elapsed.

             (f)    (Irrevocable Notice):  If the Standby Swap Provider
                    satisfies the obligations of MLIA as Party A under Part
                    5(24)(a)(iv)(B) by lodging collateral on behalf of MLIA as
                    Party A pursuant to Part 5(22)(a), MLIA as Party A must
                    promptly provide an irrevocable notice to Party B (copied to
                    the Standby Swap Provider) directing Party B that any such
                    collateral, and any Distribution or Interest Amount (as
                    those terms are defined in the Credit Support Annex) with
                    respect to such collateral, is to be returned or paid to the
                    Standby Swap Provider and not to MLIA as Party A.

(25)  Inconvertibility: If prior to the Novation Date an Inconvertibility Event
      occurs the Standby Swap Provider's rights, powers, privileges and
      obligations under this Agreement and each Transaction will terminate upon
      the Standby Swap Provider delivering a notice expressed to be given under
      this provision to Party A, Party B and the Manager and Party B will be
      taken to have released the Standby Swap Provider from all its unperformed
      and future obligations under this Agreement and each Transaction.
      Following the delivery of such a notice in accordance with this Part
      5(25), references to any jointly supported credit rating of Party A and
      the Standby Swap Provider will be deemed to references to the relevant
      credit rating of Party A.

                                                                              28
<PAGE>

Annexure 1

                  FORM OF CONFIRMATION [NAME OF SERIES TRUST]

                            [Letterhead of Party A]

[DATE]

To:  Perpetual Trustee Company Limited        Securitisation Advisory Services
     as trustee of the Series Trust           Pty. Limited
     Level 3                                  Level 8
     39 Hunter Street                         48 Martin Place
     Sydney  NSW  2000                        Sydney  NSW  2000
     AUSTRALIA                                AUSTRALIA

     Attention: Manager, Securitisation       Attention: Manager, Securitisation
                Services

     Commonwealth Bank of Australia
     Level 8
     48 Martin Place
     Sydney  NSW  2000
     AUSTRALIA

     Attention: Manager, Securitisation

CONFIRMATION - [NAME OF TRANSACTION]

The purpose of this letter is to confirm the terms and conditions of the
Transaction entered into between us on the terms specified below (the
"Transaction"). This letter constitutes a "Confirmation" as referred to in the
Master Agreement specified below.

This Confirmation is entered into by Perpetual Trustee Company Limited, ACN 000
001 007 as trustee of the Series [] Medallion Trust (the "Series Trust").

This Confirmation supplements, forms part of, and is subject to, the 1992 ISDA
Master Agreement dated as of [           ], as amended, novated or supplemented
from time to time (the "Agreement"), between Merrill Lynch International
(Australia) Limited, ACN 002 892 846("Party A"), Perpetual Trustee Company
Limited, ACN 000 001 007 as trustee of, inter alia, the Series Trust ("Party
B"), Securitisation Advisory Services Pty. Limited, ACN 064 133 946 (the
"Manager") and Commonwealth Bank of Australia, ACN 123 123 124 (the "Standby
Swap Provider"). All provisions contained in the Agreement govern this
Confirmation except as expressly modified below.

This Confirmation incorporates the attached Definitions Schedule which forms
part of, and is subject to, this Confirmation.

The terms of the particular Transaction to which this Confirmation relates are
specified below:

1.  Our Reference:              [                     ]

2.  Trade Date:                 [                     ]

3.  Effective Date:             Issue Date in respect of the Relevant Notes

4.  Termination Date:           The earlier of:

                                (a)  the date that the Relevant Notes have been

                                                                              29
<PAGE>

                                        redeemed in full in accordance with the
                                        Note Conditions; and

                                  (b)   the Scheduled Maturity Date,

5.   Floating Amounts

5.1  Floating Amounts Payable
     by Party A (subject to
     Paragraph 9 of this
     Confirmation):

     Floating Rate Payer:         Party A

     Calculation Amount:          For each Floating Rate Payer Payment Date, one
                                  half of the aggregate Invested Amount of the
                                  Relevant Notes as at the first day of the
                                  Calculation Period ending on but excluding
                                  that Floating Rate Payer Payment Date
     Floating Rate Payer          Each Distribution Date during the period
     Payment Dates:               commencing on and including [ ] and ending on
                                  and including the Termination Date, subject to
                                  adjustment in accordance with the Following
                                  Business Day Convention
     Floating Rate Option:        USD-LIBOR-BBA (except that references to
                                  "London Banking Days" in section 7.1(ag)(ii)
                                  and (iv) of the 1998 Supplement to the 1991
                                  ISDA Definitions will be replaced with
                                  references to "Banking Days" as that
                                  expression is defined in the Note Conditions)
      Designated Maturity:        [ ] months (except that Linear Interpolation
                                  using [ ] and [ ]months will apply in respect
                                  of the first Calculation Period)
      Spread:                     In respect of:

                                  (a)  Floating Rate Payer Payment Dates on or
                                       prior to [ ] (or if that day is not a
                                       Business Day, the next following Business
                                       Day), [      ]; and

                                  (b)  Floating Rate Payer Payment Dates after
                                       [ ] (or if that day is not a Business
                                       Day, the next following Business Day), [
                                       ].
     Floating Rate Day Count      Actual/360
     Fraction:

     Reset Dates:                 The first day of each Calculation Period

     Compounding:                 Inapplicable

     Class A-1 Unpaid Coupon      On each Floating Rate Payer Payment Date,
     Amount                       Party A will pay to Party B an amount
                                  calculated as follows:

                                             LIBOR
                                  $USUC=$AUCx-----x$USExchangeRate
                                             BBSW
                                  where:

                                  $US UC =  the amount to be paid by Party A;

                                  $A UC =   the A$ Class A-1 Unpaid Interest

                                                                              30
<PAGE>

                                              Payment in relation to the
                                              Distribution Date which is the
                                              same day as that Floating Rate
                                              Payer Payment Date;

                                     LIBOR =  the Floating Rate Option under
                                              this paragraph 5.1 in respect of
                                              the Reset Date which is the same
                                              day as that Floating Rate Payer
                                              Payment Date;

                                     BBSW =   the Floating Rate Option under
                                              paragraph 5.2 in respect of the
                                              Reset Date which is the same day
                                              as that Floating Rate Payer
                                              Payment Date.

5.2  Floating Amounts Payable by
     Party B (subject to
     paragraph 9 of this
     Confirmation):
     Floating Rate Payer:            Party B

     Calculation Amount:             For each Floating Rate Payer Payment Date,
                                     the A$ Equivalent of one half of the
                                     aggregate Invested Amount of the Relevant
                                     Notes as at the first day of the
                                     Calculation Period ending on but excluding
                                     that Floating Rate Payer Payment Date
     Floating Rate Payer :           Each Distribution Date during the period
     Payment Dates                   commencing on and including [ ] and ending
                                     on and including the Termination Date,
                                     subject to adjustment in accordance with
                                     the Following Business Day Convention
     Floating Rate Option:           AUD-BBR-BBSW

     Designated Maturity:            [ ] months (except that Linear
                                     Interpolation using [ ] and [ ] months will
                                     apply in respect of the first Calculation
                                     Period)
     Spread:                         In respect of:

                                     (a)  Floating Rate Payer Payment Dates on
                                          or prior to [ ] (or if that day is not
                                          a Business Day, the next following
                                          Business Day), [           ]; and

                                     (b)  Floating Rate Payer Payment Dates
                                          after [] (or if that day is not a
                                          Business Day, the next following
                                          Business Day), [           ].
     Floating Rate Day Count
     Fraction:                       Actual/365 (Fixed)

     Reset Dates                     The first day of each Calculation Period

     Compounding:                    Inapplicable

     A$ Class A-1 Unpaid Interest    On each Floating Rate Payer Payment Date
     Amount                          Party B will pay to Party A the A$ Class
                                      A-1 Unpaid Interest Payment in relation to
                                     the Distribution Date which is the same day
                                     as that Floating Rate Payer Payment Date.

6.   Exchanges

                                                                              31
<PAGE>

6.1  Initial Exchange:

     Initial Exchange Date:          Issue Date

     Party A Initial Exchange        The A$ Equivalent of the Party B Initial
     Amount:                         Exchange Amount, being A$[           ]
     Party B Initial Exchange        One half of the Initial Invested Amount of
     Amount:                         the Relevant Notes on the Issue Date ,
                                     being US$[                   ]

                                     Notwithstanding Section 2(a)(ii) of the
                                     Agreement, Party A must pay the Party A
                                     Initial Exchange Amount to Party B by
                                     4.00pm (Sydney time) on the Initial
                                     Exchange Date and Party B must pay Party A
                                     the Party B Initial Exchange Amount by
                                     4.00pm (New York time) on the Initial
                                     Exchange Date.

6.2  Instalment Exchange:

     Instalment Exchange Date:       Each Distribution Date (other than the
                                     Final Exchange Date)
     Party A Instalment Exchange     In respect of an Instalment Exchange Date
     Amount:                         means the US$ Equivalent of one half of the
                                     A$ Class A-1 Principal Amount in relation
                                     to the Distribution Date occurring on that
                                     Instalment Exchange Date
     Party B Instalment Exchange     In respect of an Instalment Exchange Date
     Amount:                         means one half of the A$ Class A-1
                                     Principal Amount in relation to the
                                     Distribution Date occurring on that
                                     Instalment Exchange Date
6.3  Final Exchange:

     Final Exchange Date:            Termination Date
     Party A Final Exchange          The US$ Equivalent of one half of the A$
     Amount:                         Class A-1 Principal Amount in relation to
                                     the Distribution Date which is the Final
                                     Exchange Date
     Party B Final Exchange          One half of the A$ Class A-1 Principal
     Amount:                         Amount in relation to the Distribution Date
                                     which is the Final Exchange Date
7.   Exchange Rates:

     For the purpose of the
     definitions of "A$
     Equivalent" and "US$
     Equivalent":

     US$ Exchange Rate:              [                     ]

     A$ Exchange Rate:               [                     ]

8.   Account Details:

8.1  Payments to Party A

     Account for payments in US$:    The account notified in writing by Part A
                                     to Party B in accordance with Part 5(3)(ii)
                                     of the Schedule to the Agreement
     Account for payments in A$:     The account notified in writing by Party A
                                     to Party B in accordance with Part 5(3)(i)
                                     of the Schedule to the

                                                                              32
<PAGE>

                                       Agreement

8.2  Payments to Party B

     Account for payments in US$:      The account notified in writing by the
                                       Principal Paying Agent to Party A in
                                       accordance with Part 5(2)(ii) of the
                                       Schedule to the Agreement

     Account for payments in A$:       The account notified in writing by Party
                                       B to Party A in accordance with Part
                                       5(2)(i) of the Schedule to the Agreement
9.   Notifications to Party A          On or before the Determination Time in
                                       respect of each Distribution Date the
                                       Manager must notify Party A and the
                                       Standby Swap Provider in writing of:

                                       (a)   the A$ Class A-1 Principal Amount
                                             which the Manager has directed
                                             Party B to pay to Party A on that
                                             Distribution Date pursuant to
                                             clause 10.5(b)(i) of the Series
                                             Supplement;

                                       (b)   the A$ Class A-1 Interest Payment
                                             in relation to that Distribution
                                             Date;

                                       (c)   the amounts (if any) allocated to
                                             the Class A-1 Notes in respect of
                                             any Principal Charge-off or
                                             Principal Charge-off Reimbursement
                                             on the immediately preceding
                                             Determination Date in accordance
                                             with Conditions 7.9 and 7.10 of the
                                             Note Conditions; and

                                       (d)   the A$ Class A-1 Unpaid Interest
                                             Payment (if any) in relation to
                                             that Distribution Date.
10.  Offices:                          The Office of MLIA as Party A for each
                                       Transaction isSydney.

                                       The Office of CBA (on and from the
                                       Novation Date) as Party A is Sydney.

                                       The Office of Party B for each
                                       Transaction is Sydney.

Please confirm that the above correctly sets out the terms of our agreement in
respect of each Transaction to which this Confirmation relates by signing and
returning this Confirmation to us by facsimile today.

Executed documents will follow by mail.

Yours sincerely

SIGNED for and on behalf of
MERRILL LYNCHINTERNATIONAL (AUSTRALIA) LIMITED, ABN 31 002 892 846

By:    _____________________________
       (Authorised Officer)

Name:  _____________________________

Title: _____________________________

                                                                              33
<PAGE>

Confirmed as at the date first             Confirmed as at the date first
written above:                             written above:

SIGNED for and on behalf of                SIGNED for and on behalf of
PERPETUAL TRUSTEE                          SECURITISATION ADVISORY SERVICES PTY.
COMPANY LIMITED, ACN 000 001 007           LIMITED, ACN 064 133 946
as trustee of the Series
2000-2G Medallion Trust

By:    ______________________________      By:    ______________________________
       (Authorised Officer)                       (Authorised Officer)

Name:  ______________________________      Name:   _____________________________

Title:  _____________________________      Title:  _____________________________

SIGNED for and on behalf of
COMMONWEALTH BANK OF
AUSTRALIA, ACN 123 123 124

By:     _____________________________
        (Authorised Officer)

Name:   _____________________________

Title:  _____________________________

                                                                              34
<PAGE>

                             Definitions Schedule

In this Confirmation and in the Agreement to the extent that it relates to the
Series Trust, unless the context otherwise requires:

"A$ Class A-1 Unpaid Interest Payment" means in relation to a Distribution Date
the amount available to be allocated towards payment to Party A in respect of A$
Class A-1 Unpaid Interest Amounts on that Distribution Date in accordance with
clause 10.2(k)(i) of the Series Supplement determined on the basis that all
amounts allocated towards payment of A$ Class A-1 Interest Amounts and A$ Class
A-1 Unpaid Interest Amounts pursuant to clause 10.2(k)(i) of the Series
Supplement are allocated first towards payment of A$ Class A-1 Interest Amounts
and then, once the A$ Class A-1 Interest Amounts are paid in full, towards
payment of A$ Class A-1 Unpaid Interest Amounts.

"Class A-1 Note Trust Deed" means the Class A-1 Note Trust Deed dated on or
about the date of this Confirmation between Party B, the Manager and the
Relevant Note Trustee.

"Determination Time" in relation to a Distribution Date means on or about
11.00am Sydney time 1 Business Day prior to that Distribution Date.

"Distribution Date" has the same meaning as in the Series Supplement.

"Note Conditions"  means the terms and conditions of the Relevant Notes annexed
to the Relevant Notes.

"Relevant Calculation Amount" means the Calculation Amount referred to in
paragraph 5.1 of this Confirmation.

"Relevant Notes" means the Class A-1 Notes issued by the Trustee under the Class
A-1 Note Trust Deed.

"Relevant Noteholders" means the Class A-1 Noteholders as that term is defined
in the Class A-1 Note Trust Deed.

"Relevant Note Trustee" means The Bank of New York, New York Branch or, if the
Bank of New York is removed or retires as the trustee for the Class A-1
Noteholders, any person appointed from time to time in its place in accordance
with the Class A-1 Note Trust Deed.

"Scheduled Maturity Date" has the same meaning as in the Series Supplement.

"Security Trust Deed" means the Security Trust Deed dated on or about the date
of this Confirmation between Party B, the Manager, the Relevant Note Trustee and
P.T. Limited, ACN 004 454 666.

"Series Supplement" means the Series Supplement dated on or about the date of
this Confirmation between CBA, Party B and the Manager.

Terms defined in the Note Conditions have the same meaning in this Confirmation
unless otherwise defined in this Confirmation.

                                                                              35
<PAGE>

 Annexure 2

                FORM OF GUARANTEE OF MERRILL LYNCH & CO., INC.

FOR VALUE RECEIVED, receipt of which is hereby acknowledged, MERRILL LYNCH &
CO., INC., a corporation duly organized and existing under the laws of the State
of Delaware ("ML & Co."), hereby unconditionally guarantees to:

(a)    Perpetual Trustee Company Limited, ACN 000 001 007 (the "Company") as
       trustee of the Series [] Medallion Trust (the "Series Trust"), the due
       and punctual payment of any and all amounts payable by Merrill Lynch
       International (Australia) Limited, ABN 31 002 892 846 a company
       incorporated in the New South Wales, Australia ("MLIA"), to the Company
       as trustee of the Series Trust under the terms of the ISDA Master
       Agreement (Currency Swap Agreement) between the Company, Securitisation
       Advisory Services Pty. Limited, ACN 064 133 946, Commonwealth Bank of
       Australia, ACN 123 123 124 as Standby Swap Provider and MLIA as Party A,
       dated as of []  (the "Agreement"), including, in case of default,
       interest on any amount due, when and as the same shall become due and
       payable, whether on the scheduled payment dates, at maturity, upon
       declaration of termination or otherwise, according to the terms thereof;
       and

(b)    Commonwealth Bank of Australia, ACN 123 123 124 ("CBA") the due and
       punctual payment of any and all amounts payable by MLIA to CBA under the
       terms of the Agreement, including all amounts due under Parts 5(24)(b),
       (d) and (e) of the schedule to the Agreement.

In case of the failure of MLIA punctually to make any such payment, ML & Co.
hereby agrees to make such payment, or cause such payment to be made, promptly
upon demand made by the Company (in the case of amounts referred to in paragraph
(a)) or CBA (in the case of amounts referred to in paragraph (b)) to ML & Co.;
provided, however that delay by the Company or CBA (as the case may be) in
giving such demand shall in no event affect ML & Co.'s obligations under this
Guarantee.  This Guarantee shall remain in full force and effect or shall be
reinstated (as the case may be) if at any time any payment guaranteed hereunder,
in whole or in part, is rescinded or must otherwise be returned by the Company
or CBA upon the insolvency, bankruptcy or reorganization of MLIA or otherwise,
all as though such payment had not been made.

ML & Co. hereby agrees that its obligations hereunder shall be unconditional,
irrespective of the validity, regularity or enforceability of the Agreement; the
absence of any action to enforce the same; any waiver or consent by the Company
or CBA concerning any provisions thereof; the rendering of any judgment against
MLIA or any action to enforce the same; or any other circumstances that might
otherwise constitute a legal or equitable discharge of a guarantor or a defense
of a guarantor.  ML & Co. covenants that this guarantee will not be discharged
except by complete payment of the amounts payable under the Agreement.  This
Guarantee shall continue to be effective if MLIA merges or consolidates with or
into another entity, loses its separate legal identity or ceases to exist.

ML & Co. hereby waives diligence; presentment; protest; notice of protest,
acceleration, and dishonor; filing of claims with a court in the event of
insolvency or bankruptcy of MLIA; all demands whatsoever, except as noted in the
fourth paragraph hereof; and any right to require a proceeding first against
MLIA.

ML & Co. hereby certifies and warrants that this Guarantee constitutes the valid
obligation of ML & Co. and complies with all applicable laws.

This Guarantee shall be governed by, and construed in accordance with, the laws
of the State of New York.

This Guarantee may be terminated at any time by notice by ML & Co. to the
Company and CBA given in accordance with the notice provisions of the Agreement,
effective upon receipt of such notice by each of the Company and CBA or such
later date as may be specified in such notice; provided, however, that this
Guarantee shall continue in full force and effect with respect to any obligation
of MLIA under the Agreement entered into prior to the effectiveness of such
notice of termination.

                                                                              36
<PAGE>

This Guarantee becomes effective concurrent with the effectiveness of the
Agreement, according to its terms.

The obligations of ML & Co. to the Company and CBA under this Agreement are
several and may be enforced by each of the Company and CBA without reference to
the other.

IN WITNESS WHEREOF, ML & Co. has caused this Guarantee to be executed in its
corporate name by its duly authorized representative.

MERRILL LYNCH & CO., INC.

By:     ________________________

Name:   ________________________

Title:  ________________________

Date:   ________________________

                                                                              37
<PAGE>

Paragraph 13 to New York Law Credit Support Annex

(13)  Elections and Variables

      (a)    Security Interest for "Obligations"

             The term "Obligations" as used in this Annex includes the
             additional obligations referred to in Paragraph 13(m)(vii)(B).

             "Base Currency" means US$.

             "Eligible Currency" means the Base Currency and any other currency
             agreed from time to time between Party A, Party B, the Standby Swap
             Provider and each Rating Agency.

      (b)    Credit Support Obligations

             (i)  Delivery Amount and Return Amount

                  "Delivery Amount" for a Valuation Date means the amount of
                  collateral calculated in accordance with Part 5(22)(d)(i) for
                  that Valuation Date.

                  "Return Amount" for a Valuation Date means the amount of
                  collateral calculated in accordance with Part 5(22)(d)(ii) for
                  that Valuation Date.

             (ii) Eligible Collateral. The following items will qualify as
                  "Eligible Collateral" for Party A provided that the items
                  specified in paragraphs (E), (F), (G) and (H) will only
                  qualify as "Eligible Collateral" of Party A upon receipt by
                  Party B and the Standby Swap Provider of an opinion as to the
                  perfection of the Secured Party's security interest in such
                  items in form and substance (and issued by legal counsel)
                  satisfactory to Party B and the Standby Swap Provider:

                                                                      Valuation
                                                                      Percentage

                  (A)     negotiable debt obligations issued by the        98%
                          U.S. Treasury Department having a remaining
                          maturity of not more than one year

                  (B)     negotiable debt obligations issued by the        95%
                          U.S. Treasury Department having a remaining
                          maturity of more than one year but not more
                          than five years

                  (C)     negotiable debt obligations issued by the        93%
                          U.S. Treasury Department having a remaining
                          maturity of more than five years but not more
                          than ten years

                  (D)     negotiable debt obligations issued by the        90%
                          U.S. Treasury Department having a remaining
                          maturity of more than ten years

                  (E)     Agency Securities having a remaining maturity    97%
                          of not more than one year

                  (F)     Agency Securities having a remaining maturity    94%
                          of more than one year but not more than five
                          years

                                                                              38
<PAGE>

                  (G)     Agency Securities having a remaining maturity    92%
                          of more than five years but not more than ten
                          years

                  (H)     Agency Securities having a remaining maturity    89%
                          of more than ten years.

                  (I)     cash in an Eligible Currency.                   100%

                  (J)     other Eligible Credit Support and Valuation
                          Percentage agreed by the parties and acceptable to
                          each Rating Agency

                  Notwithstanding the foregoing to the contrary, the Valuation
                  Percentage with respect to all Eligible Credit Support shall
                  be deemed to be 100% with respect to a Valuation Date which is
                  an Early Termination Date.

                  "Agency Securities" means negotiable debt obligations which
                  are fully guaranteed as to both principal and interest by the
                  Federal National Mortgage Association, the Government National
                  Mortgage Corporation or the Federal Home Loan Mortgage
                  Corporation and which have been assigned a short term credit
                  rating of A-1+ by S&P, but exclude: (i) interest only and
                  principal only securities; and (ii) collateralized mortgage
                  obligations, real estate mortgage investment conduits and
                  similar derivative securities.

           (iii)  Other Eligible Support

                  Not applicable.

            (iv)  Thresholds

                  (A)    "Minimum Transfer Amount" means with respect to both
                          Party A and Party B:  US$100,000.

                  (B)    Rounding. The Delivery Amount and the Return Amount
                         will be rounded to the nearest integral multiple of
                         US$10,000.

      (c)   Valuation and Timing

            (i)    "Valuation Agent" means Party A.

            (ii)   "Valuation Date" means the last Business Day of each week
                   and, at the option of either Party A or the Standby Swap
                   Provider, any Business Day between Valuation Dates.

            (iii)  "Valuation Time" means the close of business on the Business
                   Day before the Valuation Date; provided that the calculations
                   of Value and Exposure will be made as of approximately the
                   same time on the same date.

            (iv)   "Notification Time" means 11:00 am New York time on the
                   second Business Day after the Valuation Date.

        (d) Conditions Precedent and Secured Party's Rights and Remedies

            There are no "Specified Conditions" applicable to Party A. The
            following is a Specified Condition with respect to Party B:

                                                                              39
<PAGE>

             "If an Early Termination Date has been designated in respect of
             each Transaction provided that if an amount is due by Party A to
             Party B in respect of that Early Termination Date pursuant to
             Section 6, that amount has been paid in full."

      (e)    Substitution

             (i)   "Substitution Date" has the meaning specified in paragraph
             4(d)(ii).

             (ii)  Consent.  Not applicable.

      (f)    Dispute Resolution

             (i)   "Resolution Time"" means 11:00 am New York time.

             (ii)  "Value".  Not applicable.

             (iii) "Alternative".  The provisions of Paragraph 5 will apply.

      (g)    Holding and Using Posted Collateral

             (i)   Eligibility to Hold Posted Collateral; Custodians.

                   Party A: Not Applicable.

                   Party B is not entitled to hold Posted Collateral. It must
                   appoint a Custodian to hold Posted Collateral on its behalf
                   pursuant to paragraph 6(b). Party B may only appoint a
                   Custodian to hold Posted Collateral on its behalf if the
                   following conditions are satisfied:

                   (A)    Party B is not a Defaulting Party;

                   (B)    Party B's Custodian will always be the Principal
                          Paying Agent, unless that party is Party A; and

                   (C)    if the Principal Paying Agent is Party A, then Party B
                          must appoint a Custodian which is a Bank (as defined
                          in the Federal Deposit Insurance Act, as amended)
                          outside Australia, whose rating (with respect to its
                          long term unsecured, unsubordinated indebtedness) is
                          at all times at least Aa2 by Moody's and its short
                          term debt rating is A-1+/F-1+ (S&P/Fitch), and Party B
                          must notify Party A in writing of this appointment and
                          of the relevant account for Paragraph 13(l).

                   (D)    Posted Collateral may only be held in one or more
                          accounts in the name of Party B in the United States
                          and any account established by Party B's Custodian to
                          hold Posted Collateral shall be established and
                          maintained for the sole purpose of receiving
                          deliveries of and holding Posted Collateral.

             (ii)  Use of Posted Collateral. The provisions of paragraph 6(c)
                   will not apply to Party B and its Custodian. Party B's
                   Custodian will permit Party B to secure Party B's obligations
                   under the relevant Class A-1 Notes by granting to the
                   Security Trustee the charge under the Security Trust Deed
                   over Party B's rights in relation to the Posted Collateral,
                   but subject to Paragraph 13(m)(vi) of this Annex.

         (h) Distributions and Interest Amount

                                                                              40
<PAGE>

             (i)   Interest Rate. The "Interest Rate", in respect of Posted
                   Collateral which is denominated in US$, for any day means the
                   Federal Funds Overnight Rate. For the purposes hereof,
                   "Federal Funds Overnight Rate" means, for any day, an
                   interest rate per annum equal to the rate published as the
                   Federal Funds Effective Rate that appears on Telerate Page
                   118 for such day. The "Interest Rate" in respect of Posted
                   Collateral denominated in any other Eligible Currency means
                   the rate as agreed between the parties.

             (ii)  Transfer of Interest Amount. The Transfer of Interest Amount
                   will be made monthly on the second Business Day of each
                   calendar month.

             (iii) Alternative to Interest Amount. The provisions of Paragraph
                   6(d)(ii) will apply.

        (i)  Additional Representation(s)

             None.

        (j)  Other Eligible Support and Other Posted Support

             "Value" and "Transfer" with respect to Other Eligible Support and
             Other Posted Support means:  not applicable.

        (k)  Demands and Notices

             All demands, specifications and notices under this Annex will be
             made pursuant to the Section 12 of this Agreement; provided, that
             any such demand, specification or notice may be made by telephone
             ("Telephone Notice") between duly authorised employees of each
             party if such Telephone Notice is confirmed by a subsequent written
             instruction (which may be delivered via facsimile) by the close of
             business of the same day that such Telephone Notice is given.

        (l)  Addresses for Transfers

             Party A:  Party A to specify account for returns of collateral.

             Party B:  Party B must notify Party A of its Custodian's account.

        (m)  Other Provisions

             (i)  Paragraph 4(b) of the Annex is replaced by the following:

                  "(b)   Transfer Timing. Subject to Paragraph 4(a) and 5 and
                         unless otherwise specified, if a demand for the
                         Transfer of Eligible Credit Support or Posted Credit
                         Support is made by the Notification Time, then the
                         relevant Transfer will be made within three Business
                         Days of receipt of the demand; if a demand is made
                         after the Notification Time, then the relevant Transfer
                         will be made within four Business Days of receipt of
                         the demand."

             (ii) Event of Default

                  Joint Ratings below specified levels

                  Paragraph 7(i) of the Annex is amended, on line 3, by
                  replacing "two Business Days" with "three Business Days".

                                                                              41
<PAGE>

             (iii)   Party B's expenses

                     Subject to Section 15 of the Agreement, Party B agrees to
                     pay Party A's costs and expenses in relation to or caused
                     by any breach by Party B of its obligations under this
                     Annex. Party A acknowledges and agrees that its obligations
                     under this Annex will not be affected by a failure by Party
                     B to comply with its obligations under this paragraph
                     (m)(iii).

             (iv)    Governing Law notwithstanding

                     Notwithstanding that the Agreement is expressed to be
                     governed by the laws of New South Wales, this Annex (but
                     not any other provisions of the Agreement) shall be
                     governed by and construed in accordance with the laws of
                     the state of New York without giving effect to choice of
                     law doctrine and parties hereto agree that proceedings
                     relating to any dispute arising out of or in connection
                     with this Annex shall be subject to the non-exclusive
                     jurisdiction of the federal or state courts of competent
                     jurisdiction in the Borough of Manhattan in New York City,
                     State of New York.

             (v)     No trial by jury

                     Each party waives, to the fullest extent permitted by
                     applicable law, any right it may have to a trial by jury in
                     respect of any suit, action or proceeding relating to this
                     Annex.

             (vi)    No pooling of Collateral with other Security Trust security

                     Notwithstanding any provision in the Master Trust Deed,
                     Series Supplement or Security Trust Deed, but without
                     prejudice to Party B's rights under Paragraph 8(a) of this
                     Annex, no party shall be entitled to deal with the Posted
                     Collateral in any manner inconsistent with the rights of
                     the Pledgor under Paragraphs 3(d), 4(b) or 8(b)(iii) of
                     this Annex, and each party covenants to the other that it
                     shall not permit any other person to gain any rights in
                     relation to the Posted Collateral that are inconsistent
                     with the rights of the Pledgor.

             (vii)   Rights in Relation to MLIA's Posted Collateral Following
                     Novation

                     (A)    The Secured Party will hold its security interest
                            in, lien on and right of Set- Off against all Posted
                            Collateral Transferred or received by the Secured
                            Party from MLIA as Party A (or from the Standby Swap
                            Provider on behalf of MLIA as Party A but not from
                            the Standby Swap Provider in its capacity as Party
                            A) hereunder on trust for the benefit of:

                            (1)    the Series Trust as security for the
                                   Obligations of MLIA as Party A to the Secured
                                   Party as trustee of the Series Trust (other
                                   than pursuant to Paragraph 13(m)(vii)(B));
                                   and

                            (2)    the Standby Swap Provider as security for the
                                   Obligations of MLIA as Party A to the Standby
                                   Swap Provider pursuant to Parts 5(24)(d) and
                                   (e) of the Schedule to this Agreement and all
                                   MLIA's present and future obligations to the
                                   Standby Swap Provider under Paragraph
                                   13(m)(v) of the credit support annex to the
                                   MLIA/CBA ISDA Master Agreement,

                                                                              42
<PAGE>

                           in accordance with the provisions of this Paragraph
                           13(m)(vii), and Paragraph 2 is varied accordingly.

                    (B)    MLIA as Party A covenants in favour of the Secured
                           Party that it will duly and punctually pay to the
                           Secured Party:

                           (1)    all its Obligations to the Standby Swap
                                  Provider pursuant to Parts 5(24)(d) and (e) of
                                  the Schedule to this Agreement; and

                           (2)    all its present and future obligations to the
                                  Standby Swap Provider under Paragraph 13(m)(v)
                                  of the credit support annex to the MLIA/CBA
                                  ISDA Master Agreement,

                           as and when the same fall due for payment.
                           Notwithstanding the foregoing, every payment by MLIA
                           as Party A, or the Secured Party in accordance with
                           Paragraph 13(m)(vii)(C)(2)(b), to the Standby Swap
                           Provider will operate as a payment by MLIA as Party A
                           to the Secured Party in satisfaction of MLIA's
                           obligations as Party A pursuant to this Paragraph
                           13(m)(vii)(B).  The Secured Party will hold the
                           benefit of its rights under this Paragraph
                           13(m)(vii)(B) on trust for the Standby Swap Provider
                           in accordance with the provisions of this Paragraph
                           13(m)(vii).

                    (C)    The Secured Party must deal with all Posted
                           Collateral Transferred or received by the Secured
                           Party from MLIA as Party A (or from the Standby Swap
                           Provider on behalf of MLIA as Party A but not from
                           the Standby Swap Provider in its capacity as Party A)
                           hereunder:

                           (1)    prior to the Novation Date, in accordance with
                                  the provisions of this Agreement other than
                                  this Paragraph 13(m)(vii);

                           (2)    on or after the Novation Date:

                                  (a)    until the date upon which the Standby
                                         Swap Provider has initially fulfilled
                                         its obligations as Party A pursuant to
                                         Part 5(22)(a) of the Schedule to this
                                         Agreement, such Posted Collateral must
                                         be held by the Secured Party and not
                                         Transferred or otherwise applied;

                                  (b)    on or after the date upon which the
                                         Standby Swap Provider has initially
                                         fulfilled its obligations as Party A
                                         pursuant to Part 5(22)(a) of the
                                         Schedule to this Agreement and until
                                         MLIA as Party A has paid in full all of
                                         its Obligations to the Standby Swap
                                         Provider pursuant to Parts 5(24)(d) and
                                         (e) of the Schedule to this Agreement
                                         and all its present and future
                                         obligations to the Standby Swap
                                         Provider under Paragraph 13(m)(v) of
                                         the credit

                                                                              43
<PAGE>

                                         support annex to the MLIA/CBA ISDA
                                         Master Agreement, the Secured Party
                                         must, upon the instructions of the
                                         Standby Swap Provider, exercise the
                                         rights and remedies pursuant to
                                         Paragraph 8(a) in respect of such
                                         Posted Collateral, and Party A agrees
                                         that the Secured Party may exercise
                                         such rights and remedies under
                                         Paragraph 8(a) to the same extent and
                                         with the same effect as if an Event of
                                         Default or Specified Condition had
                                         occurred with respect to Party A, and
                                         apply the proceeds of the exercise of
                                         such rights and remedies in
                                         satisfaction of MLIA's Obligations as
                                         Party A to the Standby Swap Provider
                                         pursuant to Parts 5(24)(d) and (e) of
                                         the Schedule to this Agreement and
                                         MLIA's present and future obligations
                                         to the Standby Swap Provider under
                                         Paragraph 13(m)(v) of the credit
                                         support annex to the MLIA/CBA ISDA
                                         Master Agreement (and to the Secured
                                         Party pursuant to Paragraph
                                         13(m)(vii)(B)) until all such
                                         Obligations have been paid in full; and

                                  (c)    on or after the date upon which the
                                         Standby Swap Provider has initially
                                         fulfilled its obligations as Party A
                                         pursuant to Part 5(22)(a) of the
                                         Schedule to this Agreement and MLIA as
                                         Party A has paid in full all its
                                         Obligations to the Standby Swap
                                         Provider pursuant to Parts 5(24)(d) and
                                         (e) of the Schedule to this Agreement
                                         and all its present and future
                                         obligations to the Standby Swap
                                         Provider under Paragraph 13(m)(v) of
                                         the credit support annex to the
                                         MLIA/CBA ISDA Master Agreement
                                         (including by virtue of Paragraph
                                         13(m)(vii)(C)(2)(b)), the Secured Party
                                         must Transfer to MLIA as Party A all
                                         such Posted Collateral and the Interest
                                         Amount in relation to such Posted
                                         Collateral, if any.

                    (D)    The Standby Swap Provider indemnifies the Secured
                           Party from and against any cost or liability incurred
                           by the Secured Party in complying with the
                           instructions of the Standby Swap Provider pursuant to
                           Paragraph 13(m)(vii)(C)(2)(b). The Standby Swap
                           Provider acknowledges and agrees that the Secured
                           Party may not, and is not required, to take any
                           action to exercise its rights and remedies in
                           relation to the Posted Collateral in respect of the
                           Obligations of MLIA as Party A to the Standby Swap
                           Provider except upon the directions of the Standby
                           Swap Provider and in accordance with this Paragraph

                                                                              44
<PAGE>

                           13(m)(vii).

                    (E)    Following the Novation Date, the Secured Party must
                           ensure that any Posted Collateral Transferred or
                           received by the Secured Party from MLIA as Party A is
                           held by the Custodian separately from, and is not co-
                           mingled with, Posted Collateral Transferred or
                           received by the Secured Party from the Standby Swap
                           Provider as Party A.

                    (F)    This paragraph 13(m)(vii) applies notwithstanding any
                           other provision of this Agreement.

             (viii) Pledgor and Secured Party

                    In this Annex:

                    (a)    "Pledgor" means only Party A; and

                    (b)    "Secured Party" means only Party B.

             (ix)   Non-Australian Assets

                    CBA must only Transfer Posted Collateral to the Secured
                    Party from its assets held outside Australia.

             (x)    Dispute Resolution

                    Paragraph 5(i) is amended by:

                    (A)    replacing the word "Exposure" with the words "the
                           Delivery Amount  or the Return Amount, as the case
                           may be" in the first paragraph of Paragraph 5(i);

                    (B)    adding the word "and" at the end of Paragraph 5(i)(A)
                           and deleting Paragraph 5(i)(B).

             (xi)  Specified Condition

                   (A)    In Paragraph 4(a)(ii) the words "or Specified
                          Condition" are deleted.

                   (B)    In Paragraph 8(b) the words "or Specified Condition"
                          are deleted and replaced with the following "with
                          respect to the Secured Party or a Specified Condition
                          has occurred".

                                                                              45<PAGE>

                                                                   Exhibit 10.12

                      Standard Form of Agreements Between
                           Owner and Design/Builder

                    AIA Document A191 -- Electronic Format

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

THIS DOCUMENT HAS IMPORTANT LEGAL CONSEQUENCES: CONSULTATION WITH AN ATTORNEY IS
ENCOURAGED WITH RESPECT TO ITS COMPLETION OR MODIFICATION. AUTHENTICATION OF
THIS ELECTRONICALLY DRAFTED AIA DOCUMENT MAY BE MADE BY USING AIA DOCUMENT D401.

Copyright 1985, (C)1996 The American Institute of Architects, 1733 New York
Avenue, NW, Washington, DC 20006-5292. Reproduction of the material herein or
substantial quotation of its provisions without the written permission of the
AIA violates the copyright laws of the United States and will subject the
violator to legal prosecution.

--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
                                 1996 EDITION

                               TABLE OF ARTICLES

                               PART 1 AGREEMENT

<S>                                                    <C>
1.  Design/Builder                                     6.  Dispute Resolution - Mediation and Arbitration

2.  Owner                                              7.  Miscellaneous Provisions

3.  Ownership and Use of Documents and                 8.  Termination of the Agreement
    Electronic data
                                                       9.  Basis of Compensation
4.  Time
                                                       10.  Other Conditions and Services
5.  Payments

                                PART 2 AGREEMENT
<S>                                                    <C>
1.  General Provisions                                 8.  Changes in the Work

2.  Owner                                              9.  Correction of Work

3.  Design/Builder                                     10.  Dispute Resolution - Mediation and Arbitration

4.  Time                                               11.  Miscellaneous Provisions

5.  Payments                                           12.  Termination of the Agreement

6.  Protection of Persons and Property                 13.  Basis of Compensation

7.  Insurance and Bonds                                14.  Other Conditions and Services
</TABLE>

--------------------------------------------------------------------------------
<PAGE>

                      Standard Form of Agreements Between
                           Owner and Design/Builder

                    AIA Document A191 -- Electronic Format

This document comprises two separate Agreements: Part 1 Agreement and Part 2
Agreement.  Before executing the Part 1 Agreement, the parties should reach
substantial agreement on the Part 2 Agreement.  To the extent referenced in
these Agreements, subordinate parallel agreements to A191 consist of AIA
Document A491, Standard Form of Agreements Between Design/Builder and
Contractor, and AIA Document B901, Standard Form of Agreements Between
Design/Builder and Architect.

                               PART 1 AGREEMENT

                                 1996 EDITION

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

AGREEMENT

made as of the 11th day of August in the year of nineteen hundred ninety nine
               ----                              ----------------------------
(1999)
------
(In words, indicate day, month and year.)

BETWEEN the Owner:
(Name and address)
MediChem Research, Inc., an Illinois corporation
-------------------------------------------------
12305 South New Avenue
----------------------
Lemont, Illinois 60439
----------------------

and the Design/Builder:
(Name and address)
Walsh Construction Company of Illinois, an Illinois corporation
---------------------------------------------------------------
929 West Adams Street
---------------------
Chicago, Illinois 60607
-----------------------

For the following Project:
(Include Project name, location and a summary description)
MediChem New Corporate Center and Research and Development Facility on
----------------------------------------------------------------------
approximately 14.2 acres ("Project Parcel") situated in the International
-------------------------------------------------------------------------
Centre, Woodridge, Illinois.
----------------------------

The architectural services described in Article I will be provided by Solomon,
                                                                      --------
Cordwell Buenz & Associates Inc. who is lawfully licensed to practice
--------------------------------
architecture in Illinois, pursuant to a contract with the Design/Builder dated
             -----------------------------------
August 11, 1999.

Normal structural, mechanical and electrical engineering services will be
provided by the following consultants licensed to practice in Illinois pursuant
         ---------------------------- -----------------------------------------
to separate contracts with the Design/Builder:
---------------------------------------------
Space                           Civil Engineer
----------------------------------------------
Welsh Engineering               Structural Engineer
---------------------------------------------------
McGuire Engineering             Mechanical/Electrical/Fire Protection Engineers
-------------------------------------------------------------------------------
Allan Kracower Associates Inc.  Landscape Architect
---------------------------------------------------

The Owner and the Design/Builder agree as set forth below.
<PAGE>

                                   RECITALS

1.   The Design/Builder has represented to the Owner that it is an expert in the
     construction of research and office facilities and will contract with
     consultants who are expert in the design and engineering of research and
     office facilities. The Design/Builder acknowledges that Owner, in entering
     into the Agreement is seeking to consolidate the responsibility for the
     design, engineering and construction of the Corporate Center and Research
     and Development Facility in the Design/Builder.
<PAGE>

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                   TERMS AND CONDITIONS -- PART I AGREEMENT

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                                   ARTICLE 1
                                DESIGN/BUILDER

1.1    SERVICES

1.1.1  Preliminary design, budget, and schedule comprise the services required
to accomplish the preparation and submission of the Design/Builder's Proposal as
well as the preparation and submission of any modifications to the Proposal
prior to execution of the Part 2 Agreement.

1.2    RESPONSIBILITIES

1.2.1  Design services required by this Part 1 Agreement shall be performed by
qualified architects and other design professionals. The contractual obligations
of such professional persons or entities are undertaken and performed in the
interest of the Design/Builder.

1.2.2  The agreements between the Design/Builder and the persons or entities
identified in this Part 1 Agreement, and any subsequent modifications, shall be
in writing. These agreements, including financial arrangements with respect to
this Project, shall be promptly and fully disclosed to the Owner upon request.

1.2.3  Construction budgets shall be prepared by qualified professionals, cost
estimators or contractors retained by and acting in the interest of the
Design/Builder.

1.2.4  The Design/Builder shall be responsible to the Owner for acts and
omissions of the Design/Builder's Design employees, subcontractors and their
agents and employees, persons, including the Architect and other design
professionals, performing any portion of the Design/Builder's obligations under
this Part 1 Agreement.

1.2.5  If the Design/Builder believes or is advised by the Architect or by
another design professional retained to provide services on the Project that
implementation of any instruction received from the Owner would cause a
violation of any applicable law, the Design/Builder shall notify the Owner in
writing. The Design/Builder shall not be obligated to perform any act which it
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believes will violate any applicable law.

1.2.6  Nothing contained in this Part 1 Agreement shall create a contractual
relationship between the Owner and any person or entity other than the
Design/Builder.

1.3    BASIC SERVICES

1.3.1  The Design/Builder shall provide a preliminary evaluation of the Owner's
program and project budget requirements, each in terms of the other.
<PAGE>

1.3.2  The Design/Builder shall visit the site, become familiar with the local
conditions, and correlate observable conditions with the requirements of the
Owner's program, schedule, and budget.

1.3.3  The Design/Builder shall review laws applicable to design and
construction of the Project correlate such laws with the Owner's program
requirements; and advise the Owner if any program requirement may cause a
violation of such laws. Necessary changes to the Owner's program shall be
accomplished by appropriate written modification or disclosed as described in
Paragraph 1.3.5.

1.3.4  The Design/Builder shall review with the Owner alternative approaches to
design and construction of the Project.

1.3.5  The Design/Builder shall submit to the Owner a Proposal, including the
completed Schematic Design Documents, a statement of the proposed contract sum,
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and proposed schedule for completion of the Project.  Schematic Design Documents
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shall consist of preliminary design drawings, outline specifications or other
documents sufficient to establish the size, quality and character of the entire
Project, its architectural, structural, mechanical and electrical systems, and
the materials and such other elements of the Project as may be appropriate.
Deviations from the Owner's program shall be disclosed in the Proposal. If the
Proposal is accepted by the Owner, the parties shall then execute the Part 2
Agreement. A modification to the Proposal before execution of the Part 2
Agreement shall be recorded in writing as an addendum and shall be identified in
the Contract Documents of the Part 2 Agreement.

1.4    ADDITIONAL SERVICES

1.4.1  The Additional Services described under this Paragraph 1.4 shall be
provided by the Design/Builder and paid for by the Owner if authorized or
confirmed in writing by the Owner.

1.4.2  Making revisions in the Preliminary Design Documents, budget or other
documents when such revisions are:

       .1   inconsistent with approvals or instructions previously given by the
            Owner, including revisions made necessary by adjustments in the
            Owner's program or Project budget;

       .2   required by the enactment or revision of codes, laws or regulations
            subsequent to the preparation of such documents; or

       .3   due to changes required as a result of the Owner's failure to render
            decisions in a timely manner.

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<PAGE>

1.4.3  Providing more extensive programmatic criteria than that furnished by the
Owner as described in Paragraph 2.1. When authorized, the Design/Builder shall
provide professional services to assist the Owner in the preparation of the
program. Programming services may consist of:

       .1   consulting with the Owner and other persons or entities not
            designated in this Part 1 Agreement to define the program
            requirements of the Project and to review the understanding of such
            requirements with the Owner;

       .2   documentation of the applicable requirements necessary for the
            various Project functions or operations;

       .3   providing, a review and analysis of the functional and
            organizational relationships, requirements, and objectives for the
            Project;

       .4   setting forth a written program of requirements for the Owner's
            approval which summarizes the Owner's objectives, schedule,
            constraints, and criteria.

1.4.4  Providing financial feasibility or other special studies.

1.4.5  Providing planning surveys, site evaluations, or comparative studies of
prospective sites.

1.4.6  Providing special surveys, environmental studies, and submissions
required for approvals of governmental authorities or others having jurisdiction
over the Project.

1.4.7  Providing services relative to future facilities, systems, and equipment.

1.4.8  Providing services at the Owner's specific request to perform detailed
investigations of existing conditions or facilities or to make measured drawings
thereof.

1.4.9  Providing services at the Owner's specific request to verify the accuracy
of drawings or other information furnished by the Owner.

1.4.10 Coordinating services in connection with the work of separate persons or
entities retained by the Owner subsequent to the execution of this Part 1
Agreement.

1.4.11 Providing analyses of owning and operating costs.

1.4.12 Providing interior design and other similar services required for or in
connection with the selection, procurement or installation of furniture,
furnishings, and related equipment.

1.4.13 Providing services for planning tenant or rental spaces.

1.4.14 Making investigations, inventories of materials or equipment, or
valuations and detailed appraisals of existing facilities.

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<PAGE>

                                   ARTICLE 2
                                     OWNER

2.1    RESPONSIBILITIES

2.1.1  The Owner shall provide full information in a timely manner regarding
requirements for the Project, including a written program which shall set forth
the Owner 's objectives, schedule, constraints and criteria.

2.1.2  The Owner shall establish and update an overall budget for the Project,
including reasonable contingencies. This budget shall not constitute the
contract sum.

2.1.3  The Owner shall designate a representative authorized to act on the
Owner's behalf with respect to the Project. The Owner or such authorized
representative shall render decisions in a timely manner pertaining to documents
submitted by the Design/Builder in order to avoid unreasonable delay in the
orderly and sequential progress of the Design/Builder's services. The Owner may
obtain independent review of the documents by a separate architect, engineer,
contractor, or cost estimator under contract to or employed by the Owner. Such
independent review shall be undertaken at the Owner's expense in a timely manner
and shall not have the orderly progress of the Design/Builder's services.

2.1.4  The Owner shall furnish surveys describing physical characteristics,
legal limitations and utility locations for the site of the Project, and a
written legal description of the site. The surveys and legal information shall
include, as applicable, grades and lines of streets, alleys, pavements, and
adjoining property and structures; adjacent drainage; rights-of-way,
restrictions, easements, encroachments, zoning deed restrictions, boundaries and
contours of the site; locations, dimensions and necessary data pertaining to
existing buildings, other improvements and trees; and information concerning
available utility services and lines, both public and private, above and below
grade, including inverts and depths. All the information on the survey shall be
referenced to a Project bench-mark.

2.1.5  The Owner shall furnish the services of geotechnical engineers when such
services are stipulated in this Part 1 Agreement, or deemed reasonably necessary
by the Design/Builder. Such services may include but are not limited to test
borings, test pits, determinations of soil bearing values, percolation tests,
evaluations of hazardous materials, ground corrosion and resistivity tests, and
necessary operations for anticipating, subsoil conditions. The services of
geotechnical engineer(s) or other consultants shall include preparation and
submission of all appropriate reports and professional recommendations.

2.1.6  The Owner shall disclose, to the extent known to the owner, the results
and reports of prior tests, inspections or investigations conducted for the
Project involving: structural or mechanical systems; chemical, air and water
pollution hazardous materials; or other environmental and subsurface conditions.
The Owner shall disclose all information known to the Owner regarding the
presence of pollutants at the Project's site.

2.1.7  The Owner shall furnish all legal, accounting and insurance counseling
services as may be necessary at any time for the Project, including such
auditing services as the Owner may require to verify the Design Builder's
Applications for Payment.

                                      -4-
<PAGE>

2.1.8   The Owner shall promptly obtain easements, zoning variances, and legal
authorizations regarding site utilization where essential to the execution of
the Owner's program.

2.1.9   Those services, information. surveys, and reports required by Paragraphs
2.1.4 through 2.1.8 which are within the Owner's control shall be furnished at
the Owner's expense, and the Design/Builder shall be entitled to rely upon the
accuracy and completeness thereof, except to the extent the Owner advises the
Design/Builder to the contrary in writing.

2.1.10  If the Owner requires the Design/Builder to maintain any special
insurance coverage, policy, amendment, or rider, above and beyond that required
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by the Contract Documents, the Owner shall pay the additional cost thereof,
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except as otherwise stipulated in this Part 1 Agreement.

2.1.11  The Owner shall communicate with persons or entities employed or
retained by the Design/Builder through the Design/Builder, unless otherwise
directed by the Design/Builder.

                                   ARTICLE 3
                        OWNERSHIP AND USE OF DOCUMENTS
                              AND ELECTRONIC DATA

3.1     Drawings, specifications, and other documents and electronic data
furnished by the Design/Builder are instruments of service. The Design/Builder's
Architect and other providers of professional services shall retain all common
law, statutory and other reserved rights including copyright in those
instruments of service furnished by them. Drawings, specifications, and other
documents and electronic data are furnished for use solely with respect to this
Part 1 Agreement. The Owner shall be permitted to retain copies, including
reproducible copies, of the drawings, specifications, and other documents and
electronic data furnished by the Design/Builder for information and reference in
connection with the Project except as provided in Paragraphs 3.2 and 3.3.

3.2     If the Part 2 Agreement is not executed, the Owner shall not use the
drawings, specifications, and other documents and electronic data furnished by
the Design/Builder without the written permission of the Design/Builder.
Drawings, specifications, and other documents and electronic data shall not be
used by the Owner or others on other projects, for additions to this Project or
for completion of this Project by others, except by agreement in writing and
with appropriate compensation to the Design/Builder, unless the Design/Builder
is adjudged to be in default under this Part 1 Agreement or under any other
subsequently executed agreement, or by agreement in writing.

3.3     If the Design/Builder defaults in the Design/Builder's obligations to
the Owner, the Architect shall grant a license to the Owner to use the drawings,
specifications, and other documents and electronic data furnished by the
Architect to the Design/Builder for the completion of the Project, conditioned
upon the Owner's execution of an agreement to cure the Design/Builder's default
in payment to the Architect for services previously performed and to indemnify
the Architect with regard to claims arising from such reuse without the
Architect's professional involvement.

                                      -5-
<PAGE>

3.4     Submission or distribution of the Design/Builder's documents to meet
official regulatory requirements or for similar purposes in connection with the
Project is not to be construed as publication in derogation of the rights
reserved in Paragraph 3.1.

                                   ARTICLE 4
                                     TIME

4.1     Upon the request of the Owner, the Design/Builder shall prepare a
schedule for the performance of the Basic and Additional Services which shall
not exceed the time limits contained in Paragraph 10.1 and shall include
allowances for periods of time required for the Owner's review and for approval
of submissions by authorities having jurisdiction over the Project.

4.2     If the Design/Builder is delayed in the performance of services under
this Part 1 Agreement through no fault of the Design/Builder, any applicable
schedule shall be equitably adjusted.

                                   ARTICLE 5
                                   PAYMENTS

5.1     The initial payment provided in Article 9 shall be made upon execution
of this Part 1 Agreement and credited to the Owner's account as provided in
Subparagraph 9.1.2.

5.2     Subsequent payments for Basic Services, Additional Services and
Reimbursable Expenses provided for in this Part 1 Agreement shall be made
monthly on the basis set forth in Article 9.

5.3     Within ten (10) days of the Owner's receipt of a properly submitted and
correct Application for Payment, the Owner shall make payment to the
Design/Builder.

5.4     Payments due the Design/Builder under this Part 1 Agreement which are
not paid when due shall bear interest from the date due at the rate specified in
Paragraph 9.5, or in the absence of a specified rate, at the legal rate
prevailing where the Project is located.

                                      -6-
<PAGE>

                                   ARTICLE 6
                        DISPUTE RESOLUTION -- MEDIATION
                                AND ARBITRATION

6.1    Claims, disputes or other matters in question between the parties to this
Part 1 Agreement arising out of or relating to this Part 1 Agreement or breach
thereof shall be subject to and decided by mediation or arbitration. Such
mediation or arbitration shall be conducted in accordance with the Construction
Industry Mediation or Arbitration Rules of the American Arbitration Association
currently in effect.

6.2    In addition to and prior to arbitration, the parties shall endeavor to
settle disputes by mediation. Demand for mediation shall be filed in writing
with the other party to this Part 1 Agreement and with the American Arbitration
Association. A demand for mediation shall be made within a reasonable time after
the claim, dispute or other matter in question has arisen. In no event shall the
demand for mediation be made after the date when institution of legal or
equitable proceedings based on such claim, dispute or other matter in question
would be barred by the applicable statute of repose or limitations.

6.3    Demand for arbitration shall be filed in writing with the other party to
this Part 1 Agreement and with the American Arbitration Association. A demand
for arbitration shall be made within a reasonable time after the claim, dispute
or other matter in question has arisen. In no event shall the demand for
arbitration be made after the date when institution of legal or equitable
proceedings based on such claim, dispute or other matter in question would be
barred by the applicable statutes of repose or limitations.

6.4    An arbitration pursuant to this Paragraph may be joined with an
arbitration involving common issues of law or fact between the Design/Builder
and any person or entity with whom the Design/Builder has a contractual
obligation to arbitrate disputes. No other arbitration arising out of or
relating to this Part 1 Agreement shall include, by consolidation, joinder or in
any other manner, an additional person or entity not a party to this Part 1
Agreement or not a party to an agreement with the Design/Builder, except by
written consent containing a specific reference to this Part 1 Agreement signed
by the Owner, the Design/Builder and all other persons or entities sought to be
joined. Consent to arbitration involving an additional person or entity shall
not constitute consent to arbitration of any claim, dispute or other matter in
question not described in the written consent or with a person or entity not
named or described therein. The foregoing agreement to arbitrate and other
agreements to arbitrate with an additional person or entity duly consented to by
the parties to this Part 1 Agreement shall be specifically enforceable in
accordance with applicable law in any court having jurisdiction thereof.

6.5    The award rendered by the arbitrator or arbitrators shall be final, and
judgment may be entered upon it in accordance with applicable law in any court
having jurisdiction thereof.

                                   ARTICLE 7
                           MISCELLANEOUS PROVISIONS

7.1    Unless otherwise provided, this Part 1 Agreement shall be achieved by the
law of the place where the Project is located.

                                      -7-
<PAGE>

7.2  The Owner and the Design/Builder, respectively, bind themselves, their
partners, successors, assigns and legal representatives to the other party to
this Part 1 Agreement and to the partners, successors and assigns of such other
party with respect to all covenants of this Part 1 Agreement.  Neither the Owner
nor the Design/Builder shall assign this Part 1 Agreement without the written
consent of the other.

7.3  Unless otherwise provided, neither the design for nor the cost of
remediation of hazardous materials shall be the responsibility of the
Design/Builder.

7.4  This Part 1 Agreement represents the entire and integrated agreement
between the Owner and the Design/Builder and supersedes all prior negotiations,
representations or agreements, either written or oral.  This Part 1 Agreement
may be amended only by written instrument signed by both the Owner and the
Design/Builder.

7.5  Prior to the termination of the services of the Architect or any other
design professional designated in this Part 1 Agreement, the Design/Builder
shall identify, to the Owner in writing another architect or design professional
with respect to whom the Owner has no reasonable objection, who will provide the
services originally to have been provided by the Architect or other design
professional whose services are being terminated.

                                   ARTICLE 8
                         TERMINATION OF THE AGREEMENT

8.1  This Part 1 Agreement may be terminated by either party upon seven (7)
days' written notice should the other party fail to perform substantially in
accordance with its terms through no fault of the party initiating the
termination.

8.2  This Part 1 Agreement may be terminated by the Owner without cause upon at
least seven (7) days' written notice to the Design/Builder.

8.3  In the event of termination not the fault of the Design/Builder, the
Design/Builder shall be compensated for services performed to the termination
date, together with Reimbursable Expenses.

                                   ARTICLE 9
                             BASIS OF COMPENSATION

The Owner shall compensate the Design/Builder in accordance with Article 5,
Payments, and the other provisions of this Part 1 Agreement as described below.

9.1  COMPENSATION FOR BASIC SERVICES.  The compensation for all services of the
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Design/Builder under Part 1 of this Agreement are included in the compensation
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to be paid the Design/Builder included under Part 2 of this Agreement.
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                                      -8-
<PAGE>

(Usury laws and requirements under the Federal Truth in Lending Act, similar
state and local consumer credit laws and other regulations at the Owner's and
Design/Builder's principal places of business, at the location of the Project
and elsewhere may affect the validity of this provision. Specific legal advice
should he obtained with respect to deletion, modification or other requirements,
such as written disclosures or waivers.)

                                  ARTICLE 10
                         OTHER CONDITIONS AND SERVICES

Notwithstanding anything to the contrary contained herein, the Owner and the
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Design/Builder agree that as of September 15, 1999, the Owner accepted the
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Design/Builder's Proposal and the Design/Builder was authorized to proceed with
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Part 2 of this Agreement.  The Proposal is dated September 1, 1999 and a copy is
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attached to Part 2 as Exhibit E.
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This Agreement entered into as of the day and year first written above.

OWNER:                                  DESIGN/BUILDER:

Medichem Research, Inc., an             Walsh Construction Company of Illinois,
Illinois corporation                    an Illinois corporation

By:__________________________           By:__________________________________
   MICHAEL T. FLAVIN, President            DANIEL WALSH, President

<PAGE>

   ADDENDUM attached to and made a part of the Standard Form of Agreement
    Between Owner and Design/Builder, Part 1, dated as of August 11, 2000,
    between MediChem Research, Inc., an Illinois corporation, Owner, and Walsh
               Construction Company of Illinois, Inc., an Illinois corporation,
               Design/Builder

1.  1.1.1.  Paragraph 1.1.1 is deleted in its entirety and the following is
            substituted in lieu thereof:

    "1.1.1  Services required to accomplish the preparation and submission of
    the Design Builder Proposal as well as the preparation and submission of any
    modifications to the Proposal prior to execution of the Part 2 Agreement."

2.  Paragraph 1.2.1 is deleted in its entirety and the following is substituted
    in lieu thereof:

    "1.2.1 Design services, consisting of architectural and engineering
    services, required by this Part 1 Agreement shall be performed by qualified
    and licensed architects and engineers under agreements between such
    architects and engineers and the Design/Builder. Construction services
    required by this Part 1 Agreement shall be performed by qualified employees
    of the Design/Builder and its subcontractors.

3.  Paragraph 1.2.2 is deleted in its entirety and the following is substituted
    in lieu thereof

    "1.2.2 Nothing contained in the Design/Build Contract Documents shall create
    a contractual relationship between the Owner and any third party; however,
    it is understood and agreed that the Owner is an intended third-party
    beneficiary of all contracts, if any, for design or engineering services,
    all subcontracts, purchase orders and other agreements between the
    Design/Builder and third parties. The Design/Builder shall incorporate the
    obligations of this contract into its respective subcontracts, supply
    agreements and purchase orders."

4.  Paragraph 1.2.4 is amended by deleting the words ", including the Architect
    and other design professionals," in the fourth and fifth lines.

5.  Paragraph 1.2.5 is amended by deleting the words "by the Architect or" in
    the second line.

6.  Paragraph 1.4 is amended by deleting same in its entirety.

7.  Paragraph 2.1.4 is amended by deleting same in its entirety and the
    following is substituted in lieu thereof:

          "2.1.4 The Owner shall cause to be furnished Design/Builder an ALTA
          survey of the Project Parcel."

8.  Paragraph 2.1.5 is amended by adding the following:

    "Notwithstanding anything to the contrary contained herein, the
    Design/Builder represents that it has inspected in detail the Project Parcel
    and has become familiar with
<PAGE>

    all the physical and local conditions affecting the Project Parcel. Any
    information provided by the Owner to the Design/Builder, relating to
    existing conditions on, under, or to the Project and/or Project Parcel
    including but not limited to information pertaining to subsurface
    exploration and conditions, borings, test pits, tunnels and other conditions
    affecting the Project Parcel ("Assumed Existing Conditions"), is provided
    only for the convenience of the Design/Builder. The Owner assumes no
    responsibility whatsoever with respect to the sufficiency or accuracy of
    such information and there is no guarantee either express or implied that
    the conditions indicated or otherwise found by the Design/Builder as a
    result of any examination or exploration, are representative of those
    existing throughout the Project Parcel, or that unanticipated developments
    may not occur. The Owner shall be responsible and shall be obligated to
    provide any additional compensation to the Design/Builder for any increase
    in cost resulting from such existing conditions turning out to be different
    than the Assumed Existing Conditions."

9.  Paragraph 2.1.6 is amended by deleting after "involving" in the third line:
    "structural or mechanical systems; chemical, air and water pollution;" and
    adding at the end of 2.16 the following: "as Owner, has assisted
    Design/Builder in defining the business use, programming, product storage,
    etc. and without assuming any responsibility for designee engineering of the
    Project as such, shall continue to assist Design/Builder and disclose
    information to Design/Builder regarding such matters."

10. Paragraph 2.1.10 is amended by deleting "special" in the second line.

11. Paragraphs 3.1, 3.2, 3.3 and 3.4 are deleted in their entirety and the
    following is substituted in lieu thereof:

    "3.1 The copies or other intangible embodiments of all design materials,
    whether or not such materials are subject to intellectual property
    protection, including but not limited to documents, shop drawings, computer
    programs and electronic information developed for the Project or if such
    programs are not the property of the Design/Builder, its employees, the
    results of the use thereof by the Design/Builder, its employees or its
    design services subcontractors, data, plans, drawings, sketches,
    illustrations, specifications, descriptions, models, the Design Development
    Documents and the Construction Documents, and any other documents developed,
    prepared, furnished, delivered as required to be delivered by the
    Design/Builder or its employees to the Owner under this Part 1 Agreement and
    the Part 2 Agreement (collectively, "Design Materials") shall be and remain
    the property of the Owner whether or not the Project is commenced or
    completed, provided, however, that the Owner makes payment for such Design
    Materials in accordance with the Part 1 Agreement and the Part 2 Agreement.
    The intellectual property rights, if any, to the contents and concepts
    embodied in the Design Materials shall belong to the Design/Builder. As to
    those Design Materials subject to any form of intellectual property
    protection, the Design/Builder hereby grants or will cause to be granted to
    the Owner as of the date such Design Materials are delivered or required to
    be delivered to the Owner, a worldwide, paid-up, non-exclusive, non-
    transferable license for the term of the intellectual property protection,
    for the Owner to use, reproduce and have reproduced, display and allow
    others to display and to publish and allow others, subject to the
    restrictions contained herein, to display and publish, in any manner, at any
    time and as

                                     -2-
<PAGE>

    often as it desires, with or without compensation, such Design Materials
    without further compensation to the Design/Builder or any third party
    subject to the following restrictions:

           (a)  All copyright and other intellectual proprietary rights in or
         relating to any of the Design Materials, shall remain the property of
         the Design/Builder whether or not the Project is constructed. It is
         understood and agreed that, except as hereinafter provided, the
         Design/Builder shall have the right to use any detail, part, concept or
         system shown on, specified in, or inferable from such Design Materials
         on any other project and to retain copies thereof for the
         Design/Builder's, its employees or design services subcontractor's
         future use;

           (b)  the Owner shall not, without the consent of the Design/Builder
         use such Design Materials in whole or in part for the construction of
         any other project. If, however, the Owner agrees to indemnify the owner
         of the intellectual property rights against liability arising from the
         misuse or incorrect use of such Design Materials by the Owner, the
         Owner shall be entitled to, at no additional cost to the Owner, use
         such Design Materials for additions, improvements, changes or
         alterations to the Project after the completion thereof. If the
         Design/Builder is in default under this Part 1 Agreement and the Part 1
         Agreement is terminated by reason thereof, the Owner shall be entitled
         to use the Design Materials for the completion of the Project by others
         without additional compensation, and the Owner shall, at the Owner's
         option, either agree to indemnify or cause the person or persons or
         entity with whom the Owner contracts for completion of the Project to
         indemnify the Design/Builder against liability arising out of such use;

           (c)  Any reproduction of the Design Materials or part thereof be
         faithful and accurate to the original and of good quality;

           (d)  The Owner shall not remove or alter, and shall reproduce and
         display on all copies made by the Owner, the copyright notice and other
         proprietary legends appearing on such Design Materials when delivered
         to the Owner. The restrictions set forth in (c) and (a) above shall be
         imposed by the Owner on any third party to whom the Owner allows to
         display or publish the Design Materials.

         It is understood that the Owner considers the Project's aggregate
         architectural expression (that is, the overall combination of the
         Project's visually apparent and non-functional design features) and any
         distinctive individual features thereof, to be unique and of commercial
         value, and the Design/Builder agree not to design or build or allow
         other third parties the use of the Design Materials or to design or
         build within the Chicago Metropolitan Area another structure having a
         substantially identical aggregate architectural expression. The
         Design/Builder shall, however, be free to use the individual features
         from the Project or combinations of such features in other projects, so
         long as the Design/Builder

                                      -3-
<PAGE>

         complies with the foregoing limitations regarding a structure having a
         substantially identical aggregate architectural expression."

12.  Paragraph 5.1 is amended by deleting same in its entirety.

13.  Paragraph 5.2 is amended by inserting "upon application by Design/Builder
     not more often than "between "made" and "monthly" in the third line.

14.  Paragraph 5.3 is amended by deleting "ten (10)" and substituting thirty
     (30)" in line one.

15.  Paragraph 5.4 is amended by deleting everything after "9.5" in the third
     line.

16.  Article 6, including Paragraph 6.1, 6.2, 6.3, 6.4 and 6.5 is deleted in its
     entirety.

     "6.1  All claims, disputes and other matters in question between the
     Design/Builder and the Owner arising out of, or relating to this Agreement,
     the Project, the Work, the Contract Documents or the breach thereof may,
     together or separately as the Owner and Design/Builder see fit, be decided
     by arbitration in accordance with the Construction Industry Arbitration
     Rules of the American Arbitration Association then obtaining as modified
     hereby.

     Any arbitration arising out of or relating to this Agreement, the Project,
     the Work, the Contract Documents, or the breach thereof may include by
     consolidation, joinder or in any other manner, any other entities or
     persons whom the Owner or Design/Builder believes to be substantially
     involved in a common question of fact or law. In the event that more than
     one claim, dispute, or other matter in question, shall be in existence at
     the same time, the Owner and Deign/Builder may decide which of such claims,
     disputes or other matters in question shall be arbitrated and which shall
     not be arbitrated. Such decision shall be final and unappealable, and no
     arbitration shall be authorized to consider, decide, or make any award on
     any claim or matter which Owner and Design/Builder have determined shall
     not be arbitrated.

     In the event that the Owner or Design/Builder wishes to request arbitration
     of any claim, dispute or other matter in question, they shall file a notice
     of demand for arbitration in writing with the other Party specifically
     describing the claims, disputes and other matters in question which the
     Owner or Design/Builder wish to submit to arbitration.

     The Owner and Design/Builder shall have the right, but not the obligation,
     by so electing in their arbitration demand, to invoke the following method
     of selection of arbitrators in lieu of that otherwise provided by the
     American Arbitration Association rules.  If the Owner or Design/Builder so
     elects in its notice of demand for arbitration, the Owner or Design/Builder
     may appoint one party-appointed arbitrator in its notice of demand for
     arbitration.  If the Owner or Design/Builder does so, the other Party may,
     within ten (10) days, appoint a second party-appointed arbitrator.  These
     two party-appointed arbitrators shall, within thirty (30) days, or such
     further time as may be agreed upon between the Owner and the
     Design/Builder, appoint a third party-appointed arbitrator.  If the party-
     appointed arbitrators fail, to appoint a third arbitrator, the third
     arbitrator shall be

                                      -4-
<PAGE>

     appointed in accordance with the Construction Industry Arbitration Rules of
     the American Arbitration Association.

     The Owner and Design/Builder may elect to have the discovery rights and
     procedures provided by the Federal Rules of Civil Procedure to be available
     and enforceable within the arbitration proceeding.

     Any request or demand for arbitration hereunder shall be made before the
     date when institution of legal or equitable proceedings based on such
     claim, dispute or other matter in question would be barred by the
     applicable statute of limitations.

     This agreement to arbitrate shall be specifically enforceable by the Owner
     and Design/Builder under the prevailing arbitration law.  Any award
     rendered by arbitrators shall be final and enforceable by any party to the
     arbitration, and judgment may be rendered upon it in accordance with
     applicable law in any court having jurisdiction thereof.

     The Design/Builder and Owner mutually agree to arbitrate under the terms
     and conditions outlined above in this paragraph.

     Unless otherwise agreed in writing, and notwithstanding any other rights or
     obligations of either of the parties under any Contract Documents or
     agreements, Design/Builder shall carry on with the performance of its
     services and duties hereunder during the pendency of any claim, dispute,
     other matter in question or arbitration or other proceeding to resolve any
     claim, dispute or other matter in question, and the Owner shall continue to
     make payments in accordance with the Contract Documents, but the Owner
     shall be under no obligation to make payments on or against such claims,
     disputes, or other matters in question, during the pendency of any
     arbitration or other proceeding to resolve such claims, disputes or other
     matters in question."

17.  Paragraph 7.5 is amended by deleting "of the Architect or" in the second
     line; "architect or" in the fourth line; and "Architect or" in the seventh
     line.

18.  Paragraph 8.1 is amended by deleting same in its entirety and substituting
     in lieu thereof, the following:

     "8.1 If the Design/Builder defaults or persistently fails or neglects to
     perform the provisions of this Part 1, the Owner may give written notice
     that the Owner intends to terminate Part 1. If the Design/Builder fails to
     correct the default, failure or neglect within seven (7) days after receipt
     of such notice, the Owner, without prejudice to any other remedy, may make
     good such deficiencies and may deduct the cost thereof from any payment due
     the Design/Builder or, at the Owner's option, may terminate the employment
     of the Design/Builder and take possession of all of the Design Materials by
     whatever means the Owner deems expedient.

19.  Paragraphs 10.1 and 10.2 are amended by deleting same in their entirety and
     substituting in lieu thereof, the following:

                                      -5-
<PAGE>

     "10.1  The Basic Services to be performed by the Design/Builder pursuant to
     this Part 1 Agreement commenced on or about August 4, 1999 and shall be
     completed by, September 30, 1999." Owner acknowledges that such Part 1
     Basic Services were timely completed.

     "10.2  Design/Builder acknowledges that all of the services rendered by it
     pursuant to this Part 1 Agreement and resulting in the Design/Builder
     Proposal are included in its Basic Services under this Part 1 Agreement.
     Design/Builder shall not make any claims, and hereby waives any right to
     make any claim, above and beyond the compensation set forth in Part 2 of
     this Agreement.

20.  The following paragraphs are added to this Part 1 Agreement:

     "10.4  The Design/Builder acknowledges that the Owner, in entering into
     this Part 1 Agreement, is seeking to consolidate the responsibility for
     both the design and construction of the Project in the Design/Builder.  The
     Design/Builder has represented to the Owner that the Design/Builder is an
     expert in the construction of office, research and development facilities
     and that it will contract with architects and engineers that are experts in
     the design and engineering of office, research and development facilities.
     The Owner has made known to the Design/Builder the general parameters of
     the Project and its performance requirements, and the Design/Builder
     undertakes to design and build a project which fulfills such requirements."

     "10.5  Included in the Basic Services under this Part 1 Agreement is
     Design/Builder's written submission to the Owner of a Design/Builder
     Proposal for the design, engineering and construction for the Project.

     "10.6  The Owner, under separate contracts, intends to purchase equipment
     and provide for the installation of such equipment by contractors other
     than the Design/Builder.  The Design/Builder acknowledges that included in
     its Basic Services under this Part 1 Agreement is coordination with such
     manufacturers and contractors to the extent that the information is made
     available to the Design/Builder to the end that the Design/Builder designs
     the Project to meet any requirements, specification or performance
     standards required by such manufacturers and that the Basic Services
     pursuant to Part 2 of this Agreement will include construction necessary to
     allow incorporation of such equipment into the Project and allow same to be
     operational."

     "10.7  The Owner and the Design/Builder acknowledge that the Project Budget
     in the Proposal is not intended to be the Design/Builder's Guaranteed
     Maximum Price for the Project, but is intended to be Design/Builder's
     estimate, based on quantity take offs and consultation with subcontractors
     in the major trades.  Design/Builder and Owner agree that based on the
     substantially complete construction documents provided for in Part 2 of
     this Agreement, the Design/Builder has contemporaneously entered into Part
     2 of this Agreement whereby the Design/Builder agrees to provide the
     design, engineering and construction services for Contract Sum but not to
     exceed a Guaranteed Maximum Price, as defined in Part 2 of this Agreement
     for the Project."

                                      -6-
<PAGE>

     "10.8 The Design/Builder and any Subcontractor of Design/Builder shall
     purchase and maintain, prior to commencement of the Work and, except as
     hereinafter provided, final completion of the Work, the insurance coverage
     provided for in Part 2 of this Agreement.

                                      -7-
<PAGE>

                      Standard Form of Agreements Between
                           Owner and Design/Builder

                    AIA Document A191 -- Electronic Format

This document comprises two separate Agreements: Part 1 Agreement and Part 2
Agreement. Before executing the Part 1 Agreement, the parties should reach
substantial agreement on the Part 2 Agreement. To the extent referenced in these
Agreements, subordinate parallel agreements to A191 consist of AIA Document
A491, Standard Form of Agreements Between Design/Builder and Contractor, and AIA
Document B901, Standard Form of Agreements Between Design/Builder and Architect.

                               PART 2 AGREEMENT

                                 1996 EDITION

________________________________________________________________________________

AGREEMENT

made as of the 15th day of September in the year of nineteen hundred ninety nine
               ----        ---------                ----------------------------
(1999).
------
(In words, indicate day, month and year.)

BETWEEN the Owner:
(Name and address)
MediChem Research, Inc., an Illinois corporation
-------------------------------------------------
12305 South New Avenue
----------------------
Lemont, Illinois 60439
----------------------

and the Design/Builder:
(Name and address)
Walsh Construction Company of Illinois, an Illinois corporation
---------------------------------------------------------------
929 West Adams Street
---------------------
Chicago, Illinois 60607
-----------------------

For the following Project:
(Include Project name, location and a summary description.)
MediChem New Corporate Center and Research and Development Facility on
----------------------------------------------------------------------
approximately 14.2 acres ("Project Parcel") situated in the International
-------------------------------------------------------------------------
Centre, Woodridge, Illinois.
----------------------------

The architectural services described in Article 3 will be provided by Solomon,
                                                                      --------
Cordwell, Buenz & Associates, Inc., who is lawfully licensed to practice
----------------------------------
architecture in Illinois pursuant to a contract with the Design/Builder dated
             ----------------------------------------------------------------
August 11, 1999.
----------------

(Name and address)     (Registration Number)    (Relationship to Design/Builder)

Normal structural, mechanical and electrical engineering services will be
provided by the following consultants who are licensed to practice in Illinois,
         ----------------------------------------------------------------------
pursuant to separate contracts with the Design/Builder:
-------------------------------------------------------

Space Co.                       Civil Engineer
----------------------------------------------
Welsh Engineering               Structural Engineer
---------------------------------------------------
McGuire Engineering             Mechanical/Electrical/Fire Protection
---------------------------------------------------------------------
Allan Kracower Associates Inc.  Landscape Architect
---------------------------------------------------

The Owner and the Design/Builder agree as set forth below.

<PAGE>

                                   RECITALS

1.   The Owner and Design/Builder entered into a Standard Form of Agreement
     between Owner and Design/Builder, Part 1 Agreement, dated as of September
     15, 1999.

2.   The Design/Builder has completed the Part 1 services described in its
     Services Proposal and presented to the Owner its proposal ("Proposal") for
     the Project.

3.   The Owner has, with certain revision and adjustments, accepted the
     Design/Builder's Project Proposal.

4.   The Owner and the Design/Builder are desirous of entering into this Part 2
     Agreement and, incorporating to set forth the terms and conditions upon
     which the Design/Builder shall provide all of architectural and engineering
     services for the planning, procurement and construction of the Project
     described in the Proposal, as revised.

5.   The Design/Builder has represented to the Owner that it is an expert in
     construction of office, research and development facilities and that it has
     contracted separately with architects and engineers who are experts in the
     design and engineering of office, research and development facilities.  The
     Design/Builder acknowledges that Owner, in entering into the Agreement is
     seeking to consolidate the responsibility for the design.  engineering and
     construction of the Corporate Center and Research and Development Facility
     in the Design/Builder.

6.   The Owner and the Design/Builder desire that the fee under this Part 2
     Agreement shall be equal to five percent (5%) of the Cost of the Work under
     the Part 2 Agreement, which compensation shall include all compensation to
     be paid the Design/Builder for Part 1 services and costs. The Contract Sum
     under Part 2 of the Agreement shall be on the basis of actual cost plus a
     fee but not to exceed a guaranteed maximum price ("GMP").

7.   The design and engineering plans and specifications for the Project Work
     was done on a "fast track" basis with packages related to early stages of
     the work being completed first and the balance in the sequence of
     construction. As of the date of this Part 2 Agreement construction drawings
     and specifications for all of the Work have been completed and are
     scheduled in this Part 2 Agreement. The foregoing recitals are incorporated
     herein and made a part of the Part 2 Agreement.

<PAGE>

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

                    TERMS AND CONDITIONS--PART 2 AGREEMENT

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

                                   ARTICLE 1
                              GENERAL PROVISIONS

1.1    BASIC DEFINITIONS

1.1.1  The Contract Documents consist of the Part 1 Agreement to the extent
not modified by this Part 2 Agreement, this Part 2 Agreement, the
Design/Builder's Proposal and written addenda to the Proposal identified in
Article 14, the Construction Documents approved by the Owner in accordance with
Subparagraph 3.2.3 and Modifications issued after execution of this Part 2
Agreement. A Modification is a Change Order or a written amendment to this Part
2 Agreement signed by both parties, or a Construction Change Directive issued by
the Owner in accordance with Paragraph 8.3.

1.1.2  The term "Work" means the construction and services provided by the
Design/Builder to fulfill the Design/Builder's obligations.

1.2    EXECUTION, CORRELATION AND INTENT

1.2.1  It is the intent of the Owner and Design/Builder that the Contract
Documents include all items necessary for proper execution and completion of the
Work. The Contract Documents are complementary, and what is required by one
shall be as binding as if required by all; performance by the Design/Builder
shall be required only to the extent consistent with and reasonably inferable
from the Contract Documents as being necessary to produce the intended results.
Words that have well-known technical or construction industry meanings are used
in the Contract Documents in accordance with such recognized meanings.

1.2.2  If the Design/Builder believes or is advised by the Architect or by
another design professional retained to provide services on the Project that
implementation of any instruction received from the Owner would cause a
violation of any applicable law, the Design/Builder shall notify the Owner in
writing.  Design/Builder shall not be obligated to perform any act which it
                               ---                                       --
believes will violate any applicable law.

1.2.3  Nothing contained in this Part 2 Agreement shall create a contractual
relationship between the Owner and any person or entity other than the
Design/Builder.

1.3  OWNERSHIP AND USE OF DOCUMENTS

1.3.1  Drawings, specifications, and other documents and electronic data
furnished by the Design/Builder are instruments of service.  The
Design/Builder's Architect and other providers of professional services shall
retain all common law, statutory and other reserved rights, including copyright
in those instruments of service furnished by them.  Drawings, specifications,
and other documents and electronic data are furnished for use solely with
respect to this Part 2 Agreement.  The Owner shall be permitted to retain
copies, including reproducible copies, of the drawings,

<PAGE>

specifications, and other documents and electronic data furnished by the
Design/Builder for information and reference in connection with the Project
except as provided in Subparagraphs 1.3.2 and 1.3.3.

1.3.2  Drawings, specifications, and other documents and electronic data
furnished by the Design/Builder shall not be used by the Owner or others on
other projects, for additions to this Project or for completion of this Project
by others, except by agreement in writing and with appropriate compensation to
the Design/Builder, unless the Design/Builder is adjudged to be in default under
this Part 2 Agreement or under any other subsequently executed agreement.

1.3.3  If the Design/Builder defaults in the Design/Builder's obligations to the
Owner, the Architect shall grant a license to the Owner to use the drawings,
specifications, and other documents and electronic data furnished by the
Architect to the Design/Builder for the completion of the Project, conditioned
upon the Owner's execution of an agreement to cure the Design/Builder's default
in payment to the Architect for services previously performed and to indemnify
the Architect with regard to claims arising from such reuse without the
Architect's professional involvement.

1.3.4  Submission or distribution of the Design/Builder's documents to meet
official regulatory requirements or for similar purposes in connection with the
Project is not to be construed as publication in derogation of the rights
reserved in Subparagraph 1.3.1.

                                   ARTICLE 2
                                     OWNER

2.1    The Owner shall designate a representative authorized to act on the
Owner's behalf with respect to the Project. The Owner or such authorized
representative shall examine documents submitted by the Design/Builder and shall
render decisions in a timely manner and in accordance with the schedule accepted
by the Owner. The Owner may obtain independent review of the Contract Documents
by a separate architect, engineer, contractor, or cost estimator under contract
to or employed by the Owner. Such independent review shall be undertaken at the
Owner's expense in a timely manner and shall not delay the orderly progress of
the Work.

2.2    The Owner may appoint an on-site project representative to observe the
Work and to have such other responsibilities as the Owner and Design/Builder
agree in writing.

2.3    The Owner shall cooperate with the Design/Builder in securing building
and other permits, licenses and inspections. The Owner shall not be required to
pay the fees for such permits, licenses and inspections unless the cost of such
fees is excluded from the Design/Builder's Proposal.

2.4    The Owner shall furnish services of land surveyors, geotechnical
engineers, and other consultants for subsoil, air and water conditions, in
addition to those provided under the Part 1 Agreement, when such services are
deemed necessary by the Design/Builder to properly carry out the design services
required by this Part 2 Agreement.

2.5    The Owner shall disclose, to the extent known to the Owner, the results
and reports of prior tests, inspections or investigations conducted for the
Project involving: structural or mechanical systems; chemical, air and water
pollution; hazardous materials; or other

                                      -2-

<PAGE>

environmental and subsurface conditions. The Owner shall disclose all
information known to the Owner regarding the presence of pollutants at the
Project's site.

2.6    The Owner shall furnish all legal, accounting and insurance counseling
services as may be necessary at any time for the Project, including such
auditing services as the Owner may require to verify the Design/Builder's
Applications for Payment.

2.7    Those services, information, surveys and reports required by Paragraphs
2.4 through 2.6 which are within the Owner's control shall be furnished at the
Owner's expense, and the Design/Builder shall be entitled to rely upon the
accuracy and completeness thereof, except to the extent the Owner advises the
Design/Builder to the contrary in writing.

2.8    If the Owner requires the Design/Builder to maintain any insurance
coverage, policy, amendment, or rider, above and beyond that provided for in
                                       -------------------------------------
this Part 2 Agreement, the Owner shall pay the additional cost thereof, except
---------------------
as otherwise stipulated in this Part 2 Agreement.

2.9    If the Owner observes or otherwise becomes aware of a fault or defect in
the Work or nonconformity with the Design/Builder's Proposal or the Construction
Documents, the Owner shall give prompt written notice thereof to the
Design/Builder.

2.10    The Owner shall, at the request of the Design/Builder, prior to
execution of this Part 2 Agreement and promptly upon request thereafter, furnish
to the Design/Builder reasonable evidence that financial arrangements have been
made to fulfill the Owner's obligations under the Contract.

2.11   The Owner shall communicate with persons or entities employed or retained
by the Design/Builder through the Design/Builder, unless otherwise directed by
the Design/Builder.

                                   ARTICLE 3
                                DESIGN/BUILDER

3.1    SERVICES AND RESPONSIBILITIES

3.1.1  Design services required by this Part 2 Agreement shall be performed by
qualified architects and other design professionals.  The contractual
obligations of such professional persons or entities are undertaken and
performed in the interest of the Design/Builder.

3.1.2  The agreements between the Design/Builder and the persons or entities
identified in this Part 2 Agreement, and any subsequent modifications, shall be
in writing. These agreements, including financial arrangements with respect to
this Project, shall be promptly and fully disclosed to the Owner upon request.

3.1.3  The Design/Builder shall be responsible to the Owner for acts and
omissions of the Design/Builder's employees, subcontractors and their agents and
employees, and other persons, including the Architect and other design
professionals, performing any portion of the Design/Builder's obligations under
this Part 2 Agreement.

3.2    BASIC SERVICES

3.2.1  The Design/Builder's Basic Services are described below and in Article
14.

                                      -3-

<PAGE>

3.2.2  The Design/Builder shall designate a representative authorized to act on
the Design/Builder's behalf with respect to the Project.

3.2.3  The Design/Builder shall submit Construction Documents for review and
approval by the Owner. Construction Documents may include drawings,
specifications, and other documents and electronic data setting forth in detail
the requirements for construction of the Work, and shall:

       .1  be consistent with the intent of the Design/Builder's Proposal:

       .2  provide information for the use of those in the building trades; and

       .3  include documents customarily required for regulatory agency
           approvals.

3.2.4  The Design/Builder, with the assistance of the Owner, shall file
documents required to obtain necessary approvals of governmental authorities
having jurisdiction over the Project.

3.2.5  Unless otherwise provided in the Contract Documents, the Design/Builder
shall provide or cause to be provided and shall pay for design services, labor,
materials, equipment, tools, construction equipment and machinery, water, heat,
utilities, transportation and other facilities and services necessary for proper
execution and completion of the Work, whether temporary or permanent and whether
or not incorporated or to be incorporated in the Work.

3.2.6  The Design/Builder shall be responsible for all construction means,
methods, techniques, sequences and procedures, and for coordinating all portions
of the Work under this Part 2 Agreement.

3.2.7  The Design/Builder shall keep the Owner informed of the progress and
quality of the Work.

3.2.8  The Design/Builder shall be responsible for correcting Work which does
not conform to the Contract Documents.

3.2.9  The Design/Builder warrants to the Owner that materials and equipment
furnished under the Contract will be of good quality and new unless otherwise
required or permitted by the Contract Documents, that the construction will be
free from faults and defects, and that the construction will conform with the
requirements of the Contract Documents.  Construction not conforming to these
requirements, including substitutions not properly approved by the Owner, shall
be corrected in accordance with Article 9.

3.2.10 The Design/Builder shall pay all sales, consumer, use and similar taxes
which had been legally enacted at the time the Design/Builder's Proposal was
first submitted to the Owner, and shall secure and pay for building and other
permits and governmental fees, licenses and inspections necessary for the proper
execution and completion of the Work which are either customarily secured after
execution of a contract for construction or are legally required at the time the
Design/Builder's Proposal was first submitted to the Owner.

                                      -4-

<PAGE>

3.2.11  The Design/Builder shall comply with and give notices required by laws,
ordinances, rules, regulations and lawful orders of public authorities relating
to the Project.

3.2.12  The Design/Builder shall pay royalties and license fees for patented
designs, processes or products. The Design/Builder shall defend suits or claims
for infringement of patent rights and shall hold the Owner harmless from loss on
account thereof, but shall not be responsible for such defense or loss when a
particular design, process or product of a particular manufacturer is required
by the Owner. However, if the Design/Builder has reason to believe the use of a
required design, process or product is an infringement of a patent, the
Design/Builder shall be responsible for such loss unless such information is
promptly furnished to the Owner.

3.2.13  The Design/Builder shall keep the premises and surrounding area free
from accumulation of waste materials or rubbish caused by operations under this
Part 2 Agreement.  At the completion of the Work, the Design/Builder shall
remove from the site waste materials, rubbish, the Design/Builder's tools,
construction equipment, machinery, and surplus materials.

3.2.14  The Design/Builder shall notify the Owner when the Design/Builder
believes that the Work or an agreed upon portion thereof is substantially
completed.  If the Owner concurs, the Design/Builder shall issue a Certificate
of Substantial Completion which shall establish the Date of Substantial
Completion, shall state the responsibility of each party for security,
maintenance, heat, utilities, damage to the Work and insurance, shall include a
list of items to be completed or corrected and shall fix the time within which
the Design/Builder shall complete items listed therein.  Disputes between the
Owner and Design/Builder regarding the Certificate of Substantial Completion
shall be resolved in accordance with provisions of Article 10.

3.2.15  The Design/Builder shall maintain at the site for the Owner one record
copy of the drawings, specifications, product data, samples, shop drawings,
Change Orders and other modifications, in good order and regularly updated to
record the completed construction.  These shall be delivered to the Owner upon
completion of construction and prior to final payment.

3.3  ADDITIONAL SERVICES

3.3.1   The services described in this Paragraph 3.3 are not included in Basic
Services unless so identified in Article 14, and they shall be paid for by the
Owner as provided in this Part 2 Agreement, in addition to the compensation for
Basic Services. The services described in this Paragraph 3.3 shall be provided
only if authorized or confirmed in writing by the Owner.

3.3.2  Making revisions in drawings, specifications, and other documents or
electronic data when such revisions are required by the enactment or revision of
codes, laws or regulations subsequent to the preparation of such documents or
electronic data.

3.3.3  Providing consultation concerning replacement of Work damaged by fire or
other cause during construction, and furnishing services required in connection
with the replacement of such Work.

3.3.4  Providing services in connection with a public hearing, arbitration
proceeding or legal proceeding, except where the Design/Builder is a party
thereto.

                                      -5-

<PAGE>

3.3.5  Providing coordination of construction performed by the Owner's own
forces or separate contractors employed by the Owner, and coordination of
services required in connection with construction performed and equipment
supplied by the Owner.

3.3.6  Preparing a set of reproducible record documents or electronic data
showing significant changes in the Work made during construction.

3.3.7  Providing assistance in the utilization of equipment or systems such as
preparation of operation and maintenance manuals, training personnel for
operation and maintenance, and consultation during operation.

                                   ARTICLE 4
                                     TIME

4.1    Unless otherwise indicated, the Owner and the Design/Builder shall
perform their respective obligations as expeditiously as is consistent with
reasonable skill and care and the orderly progress of the Project.

4.2    Time limits stated in the Contract Documents are of the essence. The Work
to be performed under this Part 2 Agreement shall commence upon receipt of a
notice to proceed unless otherwise agreed and, subject to authorized
Modifications, Substantial Completion shall be achieved on or before the date
established in Article 14.

4.3    Substantial Completion is the stage in the progress of the Work when the
Work or designated portion thereof is sufficiently complete in accordance with
the Contract Documents so the Owner can occupy or utilize the Work for its
intended use.

4.4    Based on the Design/Builder's Proposal, a construction schedule shall be
provided consistent with Paragraph 4.2 above.

4.5    If the Design/Builder is delayed at any time in the progress of the Work
by an act or neglect of the Owner, Owner's employees, or separate contractors
employed by the Owner, or by changes ordered in the Work, or by labor disputes,
fire, unusual delay in deliveries, adverse weather conditions not reasonably
anticipatable, unavoidable casualties or other causes beyond the
Design/Builder's control, or by delay authorized by the Owner pending
arbitration, or by other causes which the Owner and Design/Builder agree may
justify delay, then the Contract Time shall be reasonably extended by Change
Order.

                                   ARTICLE 5
                                   PAYMENTS

5.1    PROGRESS PAYMENTS

5.1.1  The Design/Builder shall deliver to the Owner itemized Applications for
Payment in such detail as indicated in Article 14.

5.1.2  Within ten (10) days of the Owner's receipt of a properly submitted and
correct Application for Payment, the Owner shall make payment to the
Design/Builder.

                                      -6-

<PAGE>

5.1.3  The Application for Payment shall constitute a representation by the
Design/Builder to the Owner that the design and construction have progressed to
the point indicated; the quality of the Work covered by the application is in
accordance with the Contract Documents; and the Design/Builder is entitled to
payment in the amount requested.

5.1.4  Upon receipt of payment from the Owner, the Design/Builder shall promptly
pay the Architect, other design professionals and each contractor the amount to
which each is entitled in accordance with the terms of their respective
contracts.

5.1.5  The Owner shall have no obligation under this Part 2 Agreement to pay or
to be responsible in any way for payment to the Architect, another design
professional, or a contractor performing portions of the Work.

5.1.6  Neither progress payment nor partial or entire use or occupancy of the
Project by the Owner shall constitute an acceptance of Work not in accordance
with the Contract Documents.

5.1.7  The Design/Builder warrants that title to all construction covered by an
Application for Payment will pass to the Owner no later than the time of
payment.  The Design/Builder further warrants that upon submittal of an
Application for Payment all construction for which payments have been received
from the Owner shall be free and clear of liens, claims, security interests or
encumbrances in favor of the Design/Builder or any other person or entity
performing construction at the site or furnishing materials or equipment
relating to the construction.

5.1.8  At the time of Substantial Completion, the Owner shall pay the
Design/Builder the retainage, if any, less the reasonable cost to correct or
complete incorrect or incomplete Work.  Final payment of such withheld sum shall
be made upon correction or completion of such Work.

5.2    FINAL PAYMENT

5.2.1  Neither final payment nor amounts retained, if any, shall become due
until the Design/Builder submits to the Owner (1) an affidavit that payrolls,
bills for materials and equipment, and other indebtedness connected with the
Work for which the Owner or Owner's property might be responsible or encumbered
(less amounts withheld by the Owner) have been paid or otherwise satisfied; (2)
a certificate evidencing that insurance required by the Contract Documents to
remain in force after final payment is currently in effect and will not be
canceled or allowed to expire until at least 30 days' prior written notice has
been given to the Owner; (3) a written statement that the Design/Builder knows
of no substantial reason that the insurance will not be renewable to cover the
period required by the Contract Documents; (4) consent of surety, if any, to
final payment; and (5) if required by the Owner, other data establishing payment
or satisfaction of obligations, such as receipts, releases and waivers of liens,
claims, security interests or encumbrances arising out of the Contract, to the
extent and in such form as may be designated by the Owner.  If a contractor or
other person or entity entitled to assert a lien against the Owner's property
refuses to furnish a release or waiver required by the Owner, the Design/
Builder may furnish a bond satisfactory to the Owner to indemnify the Owner
against such lien.  If such lien remains unsatisfied after payments are made,
the Design/Builder shall indemnify the Owner for all loss and cost, including
reasonable attorneys' fees incurred as a result of such lien.

                                      -7-

<PAGE>

5.2.2  When the Work has been completed and the contract fully performed, the
Design/Builder shall submit a final application for payment to the Owner, who
shall make final payment within 30 days of receipt.

5.2.3  The making of final payment shall constitute a waiver of claims by the
Owner except those arising from:

       .1  liens, claims, security interests or encumbrances arising out of the
           Contract and unsettled;

       .2  failure of the Work to comply with the requirements of the Contract
           Documents; or

       .3  terms of special warranties required by the Contract Documents.

5.2.4  Acceptance of final payment shall constitute a waiver of all claims by
the Design/Builder except those previously made in writing and identified by the
Design/Builder as unsettled at the time of final Application for Payment.

5.3    INTEREST PAYMENTS

5.3.1  Payments due the Design/Builder under this Part 2 Agreement which are not
paid when due shall bear interest from the date due at the rate specified in
Article 13, or in the absence of a specified rate, at the legal rate prevailing
where the Project is located.

                                   ARTICLE 6
                       PROTECTION OF PERSONS AND PROPERTY

6.1    The Design/Builder shall be responsible for initiating, maintaining and
providing supervision of all safety precautions and programs in connection with
the performance of this Part 2 Agreement.

6.2    The Design/Builder shall take reasonable precautions for the safety of,
and shall provide reasonable protection to prevent damage, injury or loss to:
(1) employees on the Work and other persons who may be affected thereby; (2) the
Work and materials and equipment to be incorporated therein, whether in storage
on or off the site, under care, custody, or control of the Design/Builder or the
Design/Builder's contractors; and (3) other property at or adjacent thereto,
such as trees, shrubs, lawns, walks, pavements, roadways, structures and
utilities not designated for removal, relocation, or replacement in the course
of construction.

6.3    The Design/Builder shall give notices and comply with applicable laws,
ordinances, rules, regulations and lawful orders of public authorities bearing
on the safety of persons or property or their protection from damage, injury or
loss.

6.4    The Design/Builder shall promptly remedy damage and loss (other than
damage or loss insured under property insurance provided or required by the
Contract Documents) to property at the site caused in whole or in part by the
Design/Builder, a contractor of the Design/Builder or anyone directly or
indirectly employed by any of them, or by anyone for whose acts they may be
liable.

                                      -8-
<PAGE>

                                   ARTICLE 7
                              INSURANCE AND BONDS

7.1    DESIGN/BUILDER'S LIABILITY INSURANCE

7.1.1  The Design/Builder shall purchase from and maintain, in a company or
companies lawfully authorized to do business in the jurisdiction in which the
Project is located, such insurance as will protect the Design/Builder from
claims set forth below which may arise out of or result from operations under
this Part 2 Agreement by the Design/Builder or by a contractor of the
Design/Builder, or by anyone directly or indirectly employed by any of them, or
by anyone for whose acts any of them may be liable:

     .1   claims under workers' compensation, disability benefit and other
          similar employee benefit laws that are applicable to the Work to be
          performed;

     .2   claims for damages because of bodily injury, occupational sickness or
          disease, or death of the Design/Builder's employees:

     .3   claims for damages because of bodily injury, sickness or disease, or
          death of persons other than the Design/Builder's employees:

     .4   claims for damages covered by usual personal injury liability coverage
          which are sustained (1) by a person as a result of an offense directly
          or indirectly related to employment of such person by the
          Design/Builder or (2) by another person;

     .5   claims for damages, other than to the Work itself, because of injury
          to or destruction of tangible property, including loss of use
          resulting therefrom:

     .6   claims for damages because of bodily injury, death of a person or
          property damage arising out of ownership, maintenance or use of a
          motor vehicle; and

     .7   claims involving contractual liability insurance applicable to the
          Design/Builder's obligations under Paragraph 11.5.

7.1.2     The insurance required by Subparagraph 7.1.1 shall be written for not
less than limits of liability specified in this Part 2 Agreement or required by
law, whichever coverage is greater. Coverages, whether written on an occurrence
or claims-made basis, shall be maintained without interruption from date of
commencement of the Work until date of final payment and termination of any
coverage required to be maintained after final payment.

7.1.3     Certificates of Insurance acceptable to the Owner shall be delivered
to the Owner immediately after execution of this Part 2 Agreement. These
Certificates and the insurance policies required by this Paragraph 7.1 shall
contain a provision that coverages afforded under the policies will not be
canceled or allowed to expire until at least 30 days' prior written notice has
been given to the Owner. If any of the foregoing insurance coverages are
required to remain in force after final payment, an additional certificate
evidencing continuation of such coverage shall be submitted with the application
for final payment. Information concerning reduction of

                                      -9-
<PAGE>

coverage shall be furnished by the Design/Builder with reasonable promptness in
accordance with the Design/Builder's information and belief.

7.2    OWNER'S LIABILITY INSURANCE

7.2.1  The Owner shall be responsible for purchasing and maintaining the Owner's
usual liability insurance. Optionally, the Owner may purchase and maintain other
insurance for self-protection against claims which may arise from operations
under this Part 2 Agreement. The Design/Builder shall not be responsible for
purchasing and maintaining this optional Owner's liability insurance unless
specifically required by the Contract Documents.

7.3    PROPERTY INSURANCE

7.3.1  Unless otherwise provided under this Part 2 Agreement, the Owner shall
purchase and maintain, in a company or companies authorized to do business in
the jurisdiction in which the principal improvements are to be located, property
insurance upon the Work to the full insurable value thereof on a replacement
cost basis without optional deductibles. Such property insurance shall be
maintained, unless otherwise provided in the Contract Documents or otherwise
agreed in writing by all persons and entities who are beneficiaries of such
insurance, until final payment has been made or until no person or entity other
than the Owner has an insurable interest in the property required by this
Paragraph 7.3 to be insured, whichever is earlier. This insurance shall include
interests of the Owner, the Design/Builder, and their respective contractors and
subcontractors in the Work.

7.3.2  Property insurance shall be on an all-risk policy form and shall insure
against the perils of fire and extended coverage and physical loss or damage
including, without duplication of coverage, theft, vandalism, malicious
mischief, collapse, falsework, temporary buildings and debris removal including
demolition occasioned by enforcement of any applicable legal requirements, and
shall cover reasonable compensation for the services and expenses of the
Design/Builder's Architect and other professionals required as a result of such
insured loss. Coverage for other perils shall not be required unless otherwise
provided in the Contract Documents.

7.3.3  If the Owner does not intend to purchase such property insurance required
by this Part 2 Agreement and with all of the coverages in the amount described
above, the Owner shall so inform the Design/Builder prior to commencement of the
construction. The Design/Builder may then effect insurance which will protect
the interests of the Design/Builder and the Design/Builder's contractors in the
construction, and by appropriate Change Order the cost thereof shall be charged
to the Owner. If the Design/Builder is damaged by the failure or neglect of the
Owner to purchase or maintain insurance as described above, then the Owner shall
bear all reasonable costs properly attributable thereto.

7.3.4  Unless otherwise provided, the Owner shall purchase and maintain such
boiler and machinery insurance required by this Part 2 Agreement or by law,
which shall specifically cover such insured objects during installation and
until final acceptance by the Owner. This insurance shall include interests of
the Owner, the Design/Builder, the Design/Builder's contractors and
subcontractors in the Work, and the Design/Builder's Architect and other design
professionals. The Owner and the Design/Builder shall be named insureds.

                                     -10-
<PAGE>

7.3.5  A loss insured under the Owner's property insurance shall be adjusted by
the Owner as trustee and made payable to the Owner as trustee for the insureds,
as their interests may appear, subject to requirements of any applicable
mortgagee clause and of Subparagraph 7.3.10. The Design/Builder shall pay
contractors their shares of insurance proceeds received by the Design/Builder,
and by appropriate agreement, written where legally required for validity, shall
require contractors to make payments to their subcontractors in similar manner.

7.3.6  Before an exposure to loss may occur, the Owner shall file with the
Design/Builder a copy of each policy that includes insurance coverages required
by this Paragraph 7.3. Each policy shall contain all generally applicable
conditions, definitions, exclusions and endorsements related to this Project.
Each policy shall contain a provision that the policy will not be canceled or
allowed to expire until at least 30 days' prior written notice has been given to
the Design/Builder.

7.3.7  If the Design/Builder requests in writing that insurance for risks other
than those described herein or for other special hazards be included in the
property insurance policy, the Owner shall, if possible, obtain such insurance,
and the cost thereof shall be charged to the Design/Builder by appropriate
Change Order.

7.3.8  The Owner and the Design/Builder waive all rights against each other and
the Architect and other design professionals, contractors, subcontractors,
agents and employees, each of the other, for damages caused by fire or other
perils to the extent covered by property insurance obtained pursuant to this
Paragraph 7.3 or other property insurance applicable to the Work, except such
rights as they may have to proceeds of such insurance held by the Owner as
trustee. The Owner or Design/ Builder, as appropriate, shall require from
contractors and subcontractors by appropriate agreements, written where legally
required for validity, similar waivers each in favor of other parties enumerated
in this Paragraph 7.3. The policies shall provide such waivers of subrogation by
endorsement or otherwise. A waiver of subrogation shall be effective as to a
person or entity even though that person or entity would otherwise have a duty
of indemnification, contractual or otherwise, did not pay the insurance premium
directly or indirectly, and whether or not the person or entity had an insurable
interest in the property damaged.

7.3.9  If required in writing by a party in interest, the Owner as trustee
shall, upon occurrence of an insured loss, give bond for proper performance of
the Owner's duties. The cost of required bonds shall be charged against proceeds
received as fiduciary. The Owner shall deposit in a separate account proceeds so
received, which the Owner shall distribute in accordance with such agreement as
the parties in interest may reach, or in accordance with an arbitration award in
which case the procedure shall be as provided in Article 10.

       If after such loss no other special agreement is made, replacement of
damaged Work shall be covered by appropriate Change Order.

7.3.10 The Owner as trustee shall have power to adjust and settle a loss with
insurers unless one of the parties in interest shall object in writing, within
five (5) days after occurrence of loss to the Owner's exercise of this power; if
such objection be made, the parties shall enter into dispute

                                     -11-
<PAGE>

resolution under procedures provided in Article 10. If distribution of insurance
proceeds by arbitration is required, the arbitrators will direct such
distribution.

7.3.11 Partial occupancy or use prior to Substantial Completion shall not
commence until the insurance company or companies providing property insurance
have consented to such partial occupancy or use by endorsement or otherwise. The
Owner and the Design/Builder shall take reasonable steps to obtain consent of
the insurance company or companies and shall not, without mutual written
consent, take any action with respect to partial occupancy or use that would
cause cancellation, lapse or reduction of coverage.

7.4    LOSS OF USE INSURANCE

7.4.1  The Owner, at the Owner's option, may purchase and maintain such
insurance as will insure the Owner against loss of use of the Owner's property
due to fire or other hazards. however caused. The Owner waives all rights of
action against the Design/Builder for loss of use of the Owner's property,
including consequential losses due to fire or other hazards, however caused.

                                   ARTICLE 8
                              CHANGES IN THE WORK

8.1    CHANGES

8.1.1  Changes in the Work may be accomplished after execution of this Part 2
Agreement, without invalidating this Part 2 Agreement, by Change Order,
Construction Change Directive, or order for a minor change in the Work, subject
to the limitations stated in the Contract Documents.

8.1.2  A Change Order shall be based upon agreement between the Owner and the
Design/Builder; a Construction Change Directive may be issued by the Owner
without the agreement of the Design/Builder; an order for a minor change in the
Work may be issued by the Design/Builder alone.

8.1.3  Changes in the Work shall be performed under applicable provisions of the
Contract Documents, and the Design/Builder shall proceed promptly, unless
otherwise provided in the Change Order, Construction Change Directive, or order
for a minor change in the Work.

8.1.4  If unit prices are stated in the Contract Documents or subsequently
agreed upon, and if quantities originally contemplated are so changed in a
proposed Change Order or Construction Change Directive that application of such
unit prices to quantities of Work proposed will cause substantial inequity to
the Owner or the Design/Builder, the applicable unit prices shall be equitably
adjusted.

8.2    CHANGE ORDERS

8.2.1  A Change Order is a written instrument prepared by the Design/Builder and
signed by the Owner and the Design/Builder, stating their agreement upon all of
the following:

     .1  a change in the Work;

                                     -12-
<PAGE>

      .2  the amount of the adjustment, if any, in the Contract Sum; and

      .3  the extent of the adjustment, if any, in the Contract Time.

8.2.2 If the Owner requests a proposal for a change in the Work from the
Design/Builder and subsequently elects not to proceed with the change, a Change
Order shall be issued to reimburse the Design/Builder for any costs incurred for
estimating services, design services or preparation of proposed revisions to the
Contract Documents.

8.3   CONSTRUCTION CHANGE DIRECTIVES

8.3.1 A Construction Change Directive is a written order prepared and signed by
the Owner, directing a change in the Work prior to agreement on adjustment, if
any, in the Contract Sum or Contract Time, or both.

8.3.2 Except as otherwise agreed by the Owner and the Design/Builder, the
adjustment to the Contract Sum shall be determined on the basis of reasonable
expenditures and savings of those performing the Work attributable to the
change, including the expenditures for design services and revisions to the
Contract Documents. In case of an increase in the Contract Sum, the cost shall
include a reasonable allowance for overhead and profit. In such case, the
Design/Builder shall keep and present an itemized accounting together with
appropriate supporting data for inclusion in a Change Order. Unless otherwise
provided in the Contract Documents, costs for these purposes shall be limited to
the following:

      .1  costs of labor, including social security, old age and unemployment
          insurance, fringe benefits required by agreement or custom, and
          workers' compensation insurance;

      .2  costs of materials, supplies and equipment, including cost of
          transportation, whether incorporated or consumed;

      .3  rental costs of machinery and equipment exclusive of hand tools,
          whether rented from the Design/Builder or others;

      .4  costs of premiums for all bonds and insurance permit fees, and sales,
          use or similar taxes;

      .5  additional costs of supervision and field office personnel directly
          attributable to the change; and fees paid to the Architect, engineers
          and other professionals.

8.3.3 Pending final determination of cost to the Owner, amounts not in dispute
may be included in Applications for Payment. The amount of credit to be allowed
by the Design/Builder to the Owner for deletion or change which results in a net
decrease in the Contract Sum will be actual net cost. When both additions and
credits covering related Work or substitutions are involved in a change, the
allowance for overhead and profit shall be figured on the basis of the net
increase, if any, with respect to that change.

                                     -13-
<PAGE>

8.3.4  When the Owner and the Design/Builder agree upon the adjustments in the
Contract Sum and Contract Time, such agreement shall be effective immediately
and shall be recorded by preparation and execution of an appropriate Change
Order.

8.4    MINOR CHANGES IN THE WORK

8.4.1  The Design/Builder shall have authority to make minor changes in the
Construction Documents and construction consistent with the intent of the
Contract Documents when such minor changes do not involve adjustment in the
Contract Sum or extension of the Contract Time. The Design/Builder shall
promptly inform the Owner, in writing, of minor changes in the Construction
Documents and construction.

8.5    CONCEALED CONDITIONS

8.5.1  If conditions are encountered at the site which are ( 1) subsurface or
otherwise concealed physical conditions which differ materially from those
indicated in the Contract Documents, or (2) unknown physical conditions of an
unusual nature which differ materially from those ordinarily found to exist and
generally recognized as inherent in construction activities of the character
provided for in the Contract Documents, then notice by the observing party shall
be given to the other party promptly before conditions are disturbed and in no
event later than 21 days after first observance of the conditions.  The Contract
Sum shall be equitably adjusted for such concealed or unknown conditions by
Change Order upon claim by either party made within 21 days after the claimant
becomes aware of the conditions.

8.6    REGULATORY CHANGES

8.7    The Design/Builder shall be compensated for changes in the construction
necessitated by the enactment or revisions of codes, laws or regulations
subsequent to the submission of the Design/Builder's Proposal.

                                   ARTICLE 9
                               CORRECTION OF WORK

9.1    The Design/Builder shall promptly correct Work rejected by the Owner or
known by the Design/Builder to be defective or failing to conform to the
requirements of the Contract Documents, whether observed before or after
Substantial Completion and whether or not fabricated, installed or completed.
The Design/Builder shall bear costs of correcting such rejected Work, including
additional testing and inspections.

9.2    If, within one (1) year after the date of Substantial Completion of the
Work or, after the date for commencement of warranties established in a written
agreement between the Owner and the Design/Builder, or by terms of an applicable
special warranty required by the Contract Documents, any of the Work is found to
be not in accordance with the requirements of the Contract Documents, the
Design/Builder shall correct it promptly after receipt of a written notice from
the Owner to do so unless the Owner has previously given the Design/ Builder a
written acceptance of such condition.

9.3    Nothing contained in this Article 9 shall be construed to establish a
period of limitation with respect to other obligations which the Design/Builder
might have under the Contract Documents. Establishment of the time period of one
(1) year as described in Subparagraph 9.2

                                     -14-
<PAGE>

relates only to the specific obligation of the Design/Builder to correct the
Work, and has no relationship to the time within which the obligation to comply
with the Contract Documents may be sought to be enforced, nor to the time within
which proceedings may be commenced to establish the Design/Builder's liability
with respect to the Design/Builder's obligations other than specifically to
correct the Work.

9.4  If the Design/Builder fails to correct nonconforming Work as required or
fails to carry out Work in accordance with the Contract Documents, the Owner, by
written order signed personally or by an agent specifically so empowered by the
Owner in writing, may order the Design/Builder to stop the Work, or any portion
thereof, until the cause for such order has been eliminated; however, the
Owner's right to stop the Work shall not give rise to a duty on the part of the
Owner to exercise the right for benefit of the Design/Builder or other persons
or entities.

9.5  If the Design/Builder defaults or neglects to carry out the Work in
accordance with the Contract Documents and fails within seven (7) days after
receipt of written notice from the Owner to commence and continue correction of
such default or neglect with diligence and promptness, the Owner may give a
second written notice to the Design/Builder and, seven (7) days following
receipt by the Design/Builder of that second written notice and without
prejudice to other remedies the Owner may have, correct such deficiencies. In
such case an appropriate Change Order shall be issued deducting from payments
then or thereafter due the Design/Builder, the costs of correcting such
deficiencies. If the payments then or thereafter due the Design/Builder are not
sufficient to cover the amount of the deduction, the Design/Builder shall pay
the difference to the Owner. Such action by the Owner shall be subject to
dispute resolution procedures as provided in Article 10.

                                  ARTICLE 10
                  DISPUTE RESOLUTION MEDIATION AND ARBITRATION

10.1  Claims, disputes or other matters in question between the parties to this
Part 2 Agreement arising out of or relating to this Part 2 Agreement or breach
thereof shall be subject to and decided by mediation or arbitration. Such
mediation or arbitration shall be conducted in accordance with the Construction
Industry Mediation or Arbitration Rules of the American Arbitration Association
currently in effect.

10.2  In addition to and prior to arbitration, the parties shall endeavor to
settle disputes by mediation. Demand for mediation shall be filed in writing
with the other party to this Part 2 Agreement and with the American Arbitration
Association. A demand for mediation shall be made within a reasonable time after
the claim, dispute, or other matter in question has arisen. In no event shall
the demand for mediation be made after the date when institution of legal or
equitable proceedings based on such claim, dispute or other matter in question
would be barred by the applicable statutes of repose or limitations.

10.3  Demand for arbitration shall be filed in writing with the other party to
this Part 2 Agreement and with the American Arbitration Association. A demand
for arbitration shall be made within a reasonable time after the claim, dispute
or other matter in question has arisen. In no event shall the demand for
arbitration be made after the date when institution of legal or equitable
proceedings based on such claim, dispute or other matter in question would be
barred by the applicable statutes of repose or limitations.

                                     -15-
<PAGE>

10.4    An arbitration pursuant to this Article may be joined with an
arbitration involving common issues of law or fact between the Design/Builder
and any person or entity with whom the Design/Builder has a contractual
obligation to arbitrate disputes. No other arbitration arising out of or
relating to this Part 2 Agreement shall include, by consolidation, joinder or in
any other manner, an additional person or entity not a party to this Part 2
Agreement or not a party to an agreement with the Design/Builder, except by
written consent containing a specific reference to this Part 2 Agreement signed
by the Owner, the Design/Builder and any other person or entities sought to be
joined. Consent to arbitration involving an additional person or entity shall
not constitute consent to arbitration of any claim, dispute or other matter in
question not described in the written consent or with a person or entity not
named or described therein. The foregoing agreement to arbitrate and other
agreements to arbitrate with an additional person or entity duty consented to by
the parties to this Part 2 Agreement shall be specifically enforceable in
accordance with applicable law in any court having jurisdiction thereof.

10.5    The award rendered by the arbitrator or arbitrators shall be final, and
judgment may be entered upon it in accordance with applicable law in any court
having jurisdiction thereof.

                                  ARTICLE 11
                            MISCELLANEOUS PROVISIONS

11.1    Unless otherwise provided, this Part 2 Agreement shall be governed by
the law of the place where the Project is located.

11.2    SUBCONTRACTS

11.2.1  The Design/Builder, as soon as practicable after execution of this Part
2 Agreement, shall furnish to the Owner in writing the names of the persons or
entities the Design/Builder will engage as contractors for the Project.

11.3    WORK BY OWNER OR OWNER'S CONTRACTORS

11.3.1  The Owner reserves the right to perform construction or operations
related to the Project with the Owner's own forces, and to award separate
contracts in connection with other portions of the Project or other construction
or operations on the site under conditions of insurance and waiver of
subrogation identical to the provisions of this Part 2 Agreement. If the
Design/Builder claims that delay or additional cost is involved because of such
action by the Owner, the Design/Builder shall assert such claims as provided in
Subparagraph 11.4.

11.3.2  The Design/Builder shall afford the Owner's separate contractors
reasonable opportunity for introduction and storage of their materials and
equipment and performance of their activities and shall connect and coordinate
the Design/Builder's construction and operations with theirs as required by the
Contract Documents.

11.3.3  Costs caused by delays or by improperly timed activities or defective
construction shall be borne by the party responsible therefor. 11.4 CLAIMS FOR
DAMAGES

11.4.1  If either party to this Part 2 Agreement suffers injury or damage to
person or property because of an act or omission of the other party, of any of
the other party's employees or agents,

                                     -16-
<PAGE>

or of others for whose acts such party is legally liable, written notice of such
injury or damage, whether or not insured, shall be given to the other party
within a reasonable time not exceeding 21 days after first observance. The
notice shall provide sufficient detail to enable the other party to investigate
the matter. If a claim of additional cost or time related to this claim is to be
asserted, it shall be filed in writing.

11.5    INDEMNIFICATION

11.5.1  To the fullest extent permitted by law, the Design/Builder shall
indemnify and hold harmless the Owner, Owner's consultants, and agents and
employees of any of them from and against claims, damages, losses and expenses.
including but not limited to attorneys' fees, arising out of or resulting from
performance of the Work, provided that such claim, damage, loss or expense is
attributable to bodily injury, sickness, disease or death, or to injury to or
destruction of tangible property (other than the Work itself) including loss of
use resulting therefrom, but only to the extent caused in whole or in part by
negligent acts or omissions of the Design/Builder, anyone directly or indirectly
employed by the Design/Builder or anyone for whose acts the Design/Builder may
be liable, regardless of whether or not such claim, damage, loss or expense is
caused in part by a party indemnified hereunder. Such obligation shall not be
construed to negate, abridge, or reduce other rights or obligations of indemnity
which would otherwise exist as to a party or person described in this paragraph
11.5.

11.5.2  In claims against any person or entity indemnified under this Paragraph
11.5 by an employee of the Design/Builder, anyone directly or indirectly
employed by the Design/Builder or anyone for whose acts the Design/Builder may
be liable, the indemnification obligation under this Paragraph 11.5 shall not be
limited by a limitation on amount or type of damages, compensation or benefits
payable by or for the Design/Builder under workers' compensation acts,
disability benefit acts or other employee benefit acts.

11.6    SUCCESSORS AND ASSIGNS

11.6.1  The Owner and Design/Builder, respectively, bind themselves, their
partners, successors, assigns and legal representatives to the other party to
this Part 2 Agreement and to the partners, successors and assigns of such other
party with respect to all covenants of this Part 2 Agreement. Neither the Owner
nor the Design/Builder shall assign this Part 2 Agreement without the written
consent of the other. The Owner may assign this Part 2 Agreement to any
institutional lender providing construction financing, and the Design/Builder
agrees to execute all consents reasonably required to facilitate such an
assignment. If either party makes such an assignment, that party shall
nevertheless remain legally responsible for all obligations under this Part 2
Agreement, unless otherwise agreed by the other party.

11.7    TERMINATION OF PROFESSIONAL DESIGN SERVICES

11.7.1  Prior to termination of the services of the Architect or any other
design professional designated in this Part 2 Agreement, the Design/Builder
shall identify to the Owner in writing another architect or other design
professional with respect to whom the Owner has no reasonable objection, who
will provide the services originally to have been provided by the Architect or
other design professional whose services are being terminated.

                                     -17-
<PAGE>

11.8    EXTENT OF AGREEMENT

11.8.1  This Part 2 Agreement represents the entire agreement between the Owner
and the Design/Builder and supersedes prior negotiations, representations or
agreements, either written or oral. This Part 2 Agreement may be amended only by
written instrument and signed by both the Owner and the Design/Builder.

                                  ARTICLE 12
                          TERMINATION OF THE AGREEMENT

12.1    TERMINATION BY THE OWNER

12.1.1  This Part 2 Agreement may be terminated by the Owner upon 14 days'
written notice to the Design/Builder in the event that the Project is abandoned.
If such termination occurs, the Owner shall pay the Design/Builder for Work
completed and for proven loss sustained upon materials, equipment, tools, and
construction equipment and machinery, including reasonable profit and applicable
damages.

12.1.2  If the Design/Builder defaults or persistently fails or neglects to
carry out the Work in accordance with the Contract Documents or fails to perform
the provisions of this Part 2 Agreement, the Owner may give written notice that
the Owner intends to terminate this Part 2 Agreement. If the Design/Builder
fails to correct the defaults, failure or neglect within seven (7) days after
being given notice, the Owner may then give a second written notice and. after
an additional seven (7) days, the Owner may without prejudice to any other
remedy terminate the employment of the Design/Builder and take possession of the
site and of all materials, equipment, tools and construction equipment and
machinery thereon owned by the Design/Builder and finish the Work by whatever
method the Owner may deem expedient. If the unpaid balance of the Contract Sum
exceeds the expense of finishing the Work and all damages incurred by the Owner,
such excess shall be paid to the Design/Builder. If the expense of completing
the Work and all damages incurred by the Owner exceeds the unpaid balance, the
Design/Builder shall pay the difference to the Owner. This obligation for
payment shall survive termination of this Part 2 Agreement.

12.2    TERMINATION BY THE DESIGN/BUILDER

12.2.1  If the Owner fails to make payment when due, the Design/Builder may give
written notice of the Design/Builder's intention to terminate this Part 2
Agreement. If the Design/Builder fails to receive payment within seven (7) days
after receipt of such notice by the Owner, the Design/Builder may give a second
written notice and, seven (7) days after receipt of such second written notice
by the Owner, may terminate this Part 2 Agreement and recover from the Owner
payment for Work executed and for proven losses sustained upon materials,
equipment, tools, and construction equipment and machinery, including,
reasonable profit and applicable damages.

                                  ARTICLE 13
                             BASIS OF COMPENSATION

The Owner shall compensate the Design/Builder in accordance with Article 5,
Payments, and the other provisions of this Part 2 Agreement as described below.

                                     -18-
<PAGE>

13.1    COMPENSATION

13.1.1  For the Design/Builder's performance of the Work, the Owner shall pay
the Design/Builder in current funds the Contract Sum as determined pursuant to
                                                        ----------------------
the Addendum hereto.
-------------------

13.2    INTEREST PAYMENTS

13.3.1  The rate of interest for past due payments shall be as follows:
_________________________________ seven per cent (7%) per annum

(Usury laws and requirements under the Federal Truth in Lending Act, similar
state and local consumer credit laws and other regulations at the Owner's and
Design/Builder's principal places of business, at the location of the Project
and elsewhere may affect the validity of this provision.  Specific legal advice
should be obtained with respect to deletion, modification or other requirements,
such as written disclosures or waivers.)

                                  ARTICLE 14
                         OTHER CONDITIONS AND SERVICES

14.1.1

14.1.2

14.1.3

14.1.4

14.1.5  An Addendum, consisting of 33 pages is attached hereto and by this
        ------------------------------------------------------------------
reference incorporated herein.
-----------------------------

This Agreement entered into as of the day and year first written above.

OWNER:                              DESIGN/BUILDER:

Medichem Research, Inc., an         Walsh Construction Company of
Illinois corporation                Illinois, an Illinois corporation

By:_____________________________    By:_____________________________

                                    -19-
<PAGE>

ADDENDUM attached to and made a part of the Standard Form of Agreement Between
Owner and Design/Builder, PART 2, dated as of September 15, 1999, between
MediChem Research, Inc., an Illinois corporation, Owner, and Walsh Construction
Company of Illinois, an Illinois corporation, Design/Builder

1.   ARTICLE 1 is amended by adding the following Paragraph 1.1.3:

     "The Design/Builder accepts the relationship of trust and confidence
     established between it and the Owner by this Part 2 Agreement.  The
     Design/Builder agrees to furnish the architectural, engineering and
     construction services set forth hereby and agrees to furnish efficient
     business administration and superintendence, and to use its best efforts to
     complete the Project in the best and soundest way and in the most
     expeditious and economical manners consistent with the interest of the
     Owner".

2.   Paragraph 1.2.2 is amended by deleting "or is advised by the Architect or
     by another design professional retained to provide services on the Project"
     in the first, second and third lines.

3.   Paragraphs 1.3.1, 1.3.2, 1.3.3 and 1.3.4 are amended by deleting same in
     their entirety and substituting, in lieu thereof, the following:

     "1.3  The copies or other intangible embodiments of all design materials,
     whether or not such materials are subject to intellectual property
     protection, including but not limited to documents, shop drawings, computer
     programs and electronic information developed for the Project or if such
     programs are not the property of the Design/Builder, its employees or its
     design services subcontractor, the results of the use thereof by the
     Design/Builder, its employees or its design services subcontractors, data,
     plans, drawings, sketches, illustrations, specifications, descriptions,
     models, the Design Development Documents and the Construction Documents,
     and any other documents developed, prepared, furnished, delivered as
     required to be delivered by the Design/Builder or its employees or design
     services subcontractors to the Owner under this Part 1 Agreement and the
     Part 2 Agreement (collectively, "Design Materials") shall be and remain the
     property of the Owner whether or not the Project is commenced or completed,
     provided, however, that the Owner makes payment for such Design Materials
     in accordance with the Part 1 Agreement and the Part 2 Agreement.  The
     intellectual property rights, if any, to the contents and concepts embodied
     in the Design Materials shall belong to the Design/Builder, its employees
     or design service subcontractors in accordance with their contractual
     relationship.  As to those Design Materials subject to any form of
     intellectual property protection, the Design/Builder hereby grants or will
     cause to be granted to the Owner as of the date such Design Materials are
     delivered or required to be delivered to the Owner, a worldwide, paid-up,
     non-exclusive, non-transferable license for the term of the intellectual
     property protection, for the Owner to use, reproduce and have reproduced,
     display and allow others to display and to publish and allow others,
     subject to the restrictions contained herein, to display and publish, in
     any manner, at any time and as often as it desires, with or without
     compensation, such Design Materials without further compensation to the
     Design/Builder or any third party subject to the following restrictions:

                                      -1-
<PAGE>

     (b) All copyright and other intellectual proprietary rights in or relating
     to any of the Design Materials, shall remain the property of the
     Design/Builder, its employees and design services subcontractors whether or
     not the Project is constructed. It is understood and agreed that, except as
     hereinafter provided, the Design/Builder and its employees and design
     services subcontractors shall have the right to use any detail, part,
     concept or system shown on, specified in, or inferable from such Design
     Materials on any other project and to retain copies thereof for the
     Design/Builder's, its employees or design services subcontractor's future
     use;

     (c) the Owner shall not, without the consent of the Design/Builder or its
     appropriate employees or design services subcontractor, as the case may be,
     use such Design Materials in whole or in part for the construction of any
     other project. If, however, the Owner agrees to indemnify the owner of the
     intellectual property rights against liability arising from the misuse or
     incorrect use of such Design Materials by the Owner, the Owner shall be
     entitled to, at no additional cost to the Owner, use such Design Materials
     for additions, improvements, changes or alterations to the Project after
     the completion thereof. If the Design/Builder is in default under this Part
     2 Agreement and the Part 2 Agreement is terminated by reason thereof, the
     Owner shall be entitled to use the Design Materials for the completion of
     the Project by others without additional compensation, and the Owner shall,
     at the Owner's option, either agree to indemnify or cause the person or
     persons or entity with whom the Owner contracts for completion of the
     Project to indemnify the Design/Builder, its employees or design services
     subcontractors against liability arising out of such use;

     (d) Any reproduction of the Design Materials or part thereof be faithful
     and accurate to the original and of good quality;

     (e) The Owner shall not remove or alter, and shall reproduce and display on
     all copies made by the Owner, the copyright notice and other proprietary
     legends appearing on such Design Materials when delivered to the Owner. The
     restrictions set forth in (c) and (a) above shall be imposed by the Owner
     on any third party to whom the Owner allows to display or publish the
     Design Materials.

It is understood that the Owner considers the Project's aggregate architectural
expression (that is, the overall combination of the Project's visually apparent
and non-functional design features) and any distinctive individual features
thereof, to be unique and of commercial value, and the Design/Builder, its
employees and its design services subcontractors agree not to design or build or
allow other third parties the use of the Design Materials or to design or build
within the Chicago Metropolitan Area another structure having a substantially
identical aggregate architectural expression. The Design/Builder, its employees
and its design services subcontractors shall, however, be free to use the
individual features from the Project or combinations of such features in other
projects, so long as the Design/Builder complies with the foregoing limitations
regarding a structure having a substantially identical aggregate architectural
expression.
                                      -2-
<PAGE>

4.   Paragraph 2.1 is amended by adding ", which representative shall be
     designated the Project Director" to the end of the first sentence, and by
     deleting everything following the second sentence.

5.   Paragraph 2.2 is amended by inserting a period after "Work" in line two and
     delete the balance of such sentence; and by adding the following: "The
     Project Director and the on-site representative shall be afforded access to
     all areas of the Work without exception. The on-site representative shall
     not be presumed to have any authority to modify any aspects of the design,
     to dictate construction methods or to give instructions to the
     Design/Builder or any Subcontractor except as evidenced by the written
     authority of the Project Director.

6.   Paragraph 2.3 is amended by deleting same in its entirety and substituting
     in lieu thereof, the following:

     "The Design/Builder shall secure all building and other permits, licenses
     and inspections and shall pay the fees for such permits, licenses and
     inspections as a Cost of the Work. The Owner shall cooperate with the
     Design/Builder in connection with the securing of any such permits,
     licenses or inspections."

7.   Paragraph 2.4 is amended by deleting same in its entirety and substituting
     in lieu thereof, the following:

     "To the extent completed and available to Owner prior to the commencement
     of Phase 1 services, the Owner shall provide the Design/Builder with any
     surveys and geotechnical studies in the possession of the Owner."

8.   Intentionally deleted.

9.   Intentionally deleted.

10.  Paragraph 3.1.3 is amended by deleting "The Architect and" in the fourth
     line.

11.  Article 3 is amended by adding the following Paragraph 3.1.4:

     "3.1.4 Owner is the intended third party beneficiary of all contracts with
     design professionals, subcontractors, purchase orders and other agreements
     between the Design/Builder and third parties.  The Design/Builder shall
     incorporate the obligations of this Part 2 Agreement with the Owner in its
     respective contracts with design professionals, subcontractors, supply
     agreements, purchase orders and other agreements."

12.  Paragraph 3.2.3 is amended by inserting "Design Development Documents and"
     after "submit" in the first line.

13.  Paragraph 3.2.3.3 is amended by deleting "customarily" in the first line.

14.  Paragraph 3.2.4 is hereby amended by deleting "assistance" in the first
     line and substituting "cooperation".
<PAGE>

15.  Paragraph 3.2.14 is amended by inserting "in writing" after "concurs" in
     the fourth line; and insert "subject to the approval of Owner" after
     "shall" in line four.

16.  Paragraph 3.3.6 is amended by deleting same in its entirety.

17.  Paragraph 3.3.7 is amended by deleting same in its entirety.

18.  Paragraph 4.1 is amended by deleting same in its entirety and substituting
     in the lieu thereof, the following: "Design/Builder shall perform its
     obligations within the time limits stated in the Contract Documents with
     reasonable skill and care and providing for the orderly progress of the
     Project."

19.  Paragraph 4.2 is amended by deleting the second sentence of such paragraph
     and substituting in lieu thereof, the following:

     "The design and engineering services to be performed under this Part 2
     Agreement shall commence by August 1, 1999 and the Construction Documents
     for all of the Project Work under this Part 2 Agreement shall be completed
     by the dates contained in Exhibit "B" attached hereto, the Schedule of
     Completion of Construction.

20.  Paragraph 4.4 is amended by deleting same in its entirety and substituting
     the following:

     "Attached hereto as Exhibit "A" is the Schedule of Construction Drawings
     and Specifications for all of the Work.  Exhibit B indicates each major
     category or unit of construction to be performed at the Project Parcel,
     properly sequenced and intermeshed and shows completion of the construction
     portion of the Work within the time periods established in Article 14.  The
     Design/Builder shall provide the Owner with Monthly updates of such
     progress schedules indicating completed activities and any changes in
     sequencing or intermeshed durations."

21.  Paragraph 4.5 is amended by adding the following:

     "Extension of time shall be Design/Builder's sole remedy for any such
     delay, unless the same shall have been caused by acts constituting
     intentional interference by the Owner with the Design/Builder's performance
     of the Work where such acts continue after Design/Builder's written notice
     to the Owner of such interference.  The Owner's exercise of any of its
     rights under the Contract Documents regarding changes in the Work,
     regardless of the extent or number of changes, or the Owner's exercise of
     any of its remedies or suspension of the Work or requirement of connection
     or re-execution of any defective work shall not under any circumstances be
     construed as interference with Design/Builder's performance of the Work."

22.  Paragraph 5.1.2 is amended by deleting same in its entirety and
     substituting in lieu thereof, the following:

                                      -4-
<PAGE>

     "Based on Applications for payment submitted to the Owner by Design/Builder
     and certificates of payment issued by the Owner, Owner shall make progress
     payments on account of the design and engineering services and the
     construction services included in the Contract Sum to the Design/Builder as
     provided in the Contract Documents as follows:

          In connection with construction and Design services, not later than
          twenty (20) days following the submission of a complete and correct
          Application for payment, subject to retainage as set forth herein, and
          compliance with the procedures set forth in the Contract Documents,
          the portion of the Contract Sum properly allocable to the cost of
          labor, materials and equipment ("Cost of Work") incorporated in the
          Work and, subject to the Owner's prior written approval, properly
          allocable to materials and equipment suitably stored at the Project
          Parcel or in a bonded warehouse away from the Project Parcel for the
          period covered by the Application for payment and the Design/Builder's
          fee."

23.  Paragraph 5.3.1 is amended by putting a period after "13" in the third
     line, and deleting the balance of the paragraph.

24.  Paragraph 7.1 is amended by adding the following Paragraph 7.1.4:

     "7.1.4 The Design/Builder and any Subcontractor of Design/Builder,
     including design and engineering consultants, shall purchase and maintain
     the following insurance coverage:

     All such coverage maintained by the Design/Builder and any Subcontractor of
     Design/Builder shall be written by companies licensed by or authorized to
     do business within the State of Illinois and shall be listed in the most
     current Best's Key Rating Guide at no less a rating than A-III.

     A.   Statutory Workers' Compensation and Occupational Disease including
          Other States, Voluntary Compensation, United States Longshoremen and
          Harbor Worker's coverage: Coverage is provided only for employees of
          the Design/Builder and its Subcontractors, including design and
          engineering consultants, as applicable, performing work on this
          Project and operations incidental to the Work.

     B.   Employer's Liability coverage with a limit of liability of $1,000,000
          per accident, $1,000,000 per person for disease and $1,000,000 in the
          aggregate for disease.

     C.   Comprehensive General Liability coverage with a limit of liability of
          $2,000,000 for each occurrence and $2,000,000 in the aggregate for
          Bodily Injury and Property Damage Coverage.  This coverage will
          include:

          (1)  Premises/Operations (in or about the construction site);

          (2)  Products/Completed Operations with a minimum of a two year
               extension of coverage following Final Completion of the Project;

                                      -5-
<PAGE>

          (3)   Explosion, Collapse, and Underground Hazards coverage;

          (4)   Broad Form Blanket Contractual Liability;

          (5)   Personal Injury coverage;

          (6)   Advertising Liability coverage;

          (7)   Medical Payments coverage;

          (8)   Host Liquor Liability coverage;

          (9)   Fire Legal Liability coverage;

          (10)  Broad Form Property Damage coverage, including Completed
                Operations;

          (11)  Intentionally deleted;

          (12)  Intentionally deleted;

          (13)  Intentionally deleted;

          (14)  Additional Persons Insured coverage;

          (15)  Extended Bodily Injury coverage with Employee and Contractual
                Exclusions voided;

          (16)  Severability of Interest coverage; and

          (17)  Cross Liability coverage.

     D.   Comprehensive Automobile Liability Insurance covering the use of all
          owned, non-owned and hired vehicles with Bodily Injury in an amount
          not less than $1,000,000 for each person in any one occurrence, and
          $1,000,000 for injuries sustained by two or more persons in any one
          occurrence and Property Damage limits of not less than $500,000 for
          each occurrence.

     E.   Excess Liability Coverage, specifically identifying the policies
          described in B, C and D above, in excess of the Employer's Liability
          and Comprehensive General Liability and Comprehensive Automobile
          Liability Insurance coverage with a limit of not less than $20,000,000
          for each occurrence and in the aggregate for Bodily Injury and
          Property Damage claims.

     F.   Intentionally deleted.

     G.   The Design/Builder shall, at its cost, expense, and a cost of the work
          purchase and maintain professional liability insurance, covering the
          Design/Builder and its employees and design and engineering service
          subcontractors against all claims which the Design/Builder, its
          employees and design and engineering service

                                      -6-
<PAGE>

          subcontractors may become obligated to pay by reason of liability
          enforced upon them by law, the Agreement (Part 1 and Part 2) or
          otherwise as a result of the performance of professional services for
          the Owner under this Agreement, including but not limited to, design,
          architectural and engineering services. Such coverage shall be in an
          amount not less than $10,000,000, and such coverage shall remain in
          force for not less then five (5) years from the date of Substantial
          Completion of the Project.

     H.   The Additional insured under the Comprehensive General Liability
          Policy, the Comprehensive Automobile Liability Policy, Workmen's
          Compensation and Employer's Liability Policy shall be the Owner, its
          lender, and all of the officers, directors, engineers, agents,
          shareholders and representatives of the foregoing.

     I.   If any insurance to be provided herein is subject to an aggregate
          limit.  Design/Builder and its Subcontractors shall cause each such
          policy to provide that such limit will apply separately to the Work,
          other than product/completed operations-aggregate limits.

     J.   Intentionally deleted.

     K.   In addition to the other requirements set forth herein, to the extent
          the Contract Insurance Requirements of Owner's lender, and by this
          reference are greater than other insurance requirements herein, the
          requirements of Owner's lender shall prevail, provided such greater
          requirements are generally attainable in the market place and the
          Contract Sum is increased to cover any additional cost.

25.  Paragraph 7.3.9 is amended by deleting same in its entirety.

26.  Article 7 is amended by adding the following Paragraph 7.4:

     "7.4 Performance Bonds and Labor and Material Payment Bonds.

     7.4.1 At the option of the Owner, Design/Builder shall furnish bonds
     covering its faithful performance and payment obligations under this Part 2
     Agreement.  The Cost of such bonds shall be a Cost of the work.  Such bonds
     shall be in an amount equal to 100% of the Contract Sum, and shall be with
     a surety acceptable to Owner.  Such bonds shall name Owner and Owner's
     lender as obligees and such entities as Owner may designate as additional
     obligees thereunder such bonds shall include a provision stating that no
     modification of any provision of any Contract Documents, including a change
     in the Contract Time, Contract Sum or condition of payment, will release
     the surety in part or in whole.  At the option of the Owner, Design/Builder
     shall require any subcontractor to furnish bonds covering their faithful
     performance and payment obligations under their respective subcontracts,
     naming Owner and its lender as obligees and including the same provisions
     required for Design/Builder's bonds.  The costs of such bonds shall be a
     Cost of the Work and shall result in an increase in the GMP.

                                      -7-
<PAGE>

27.  Paragraph 8.1.1 is amended by adding the following:

     "No action, conduct omission, prior failure as course of dealing by the
     Owner shall act to waive, modify, change or alter the requirements that
     change orders must be in writing signed by the Owner and Design/Builder and
     that such written change order's are the exclusive method of effecting any
     change to the Contract Sum or Contract Time."

28.  Paragraph 8.1.2 is amended by deleting "may be issued by the Design/Builder
     alone" in lines five and six and substituting, "shall be based upon
     agreement between the Design/Builder and Owner."

29.  Not used.

30.  Paragraph 8.4.1 is amended by adding to the last sentence: ", which minor
     changes shall be subject to the Owner's reasonable objection."

31.  Paragraph 8.5.1 is amended by deleting same in its entirety and
     substituting in lieu thereof the following:

     "Notwithstanding anything to the contrary contained herein, the
     Design/Builder represents that it has inspected in detail the Project
     Parcel and has become familiar with all the physical and local conditions,
     affecting the Project Parcel.  Any information provided by the Owner to the
     Design/Builder, relating to existing conditions on, under, or to the
     Project and/or Project Parcel including but not limited to information
     pertaining to subsurface exploration and conditions, borings, test pits,
     tunnels and other conditions affecting the Project Parcel (collectively,
     "Assumed Existing Conditions"), is provided only for the convenience of the
     Design/Builder.  The Owner assumes no responsibility whatsoever with
     respect to the sufficiency or accuracy of such information and there is no
     guarantee either express or implied that the conditions indicated or
     otherwise found by the Design/Builder as a result of any examination or
     exploration, are representative of those existing throughout the Project
     Parcel, or that unanticipated developments may not occur.  The Owner shall
     be responsible and shall be obligated to provide any additional
     compensation to the Design/Builder for any increase in cost or decrease in
     anticipated profits resulting from such existing conditions turning out to
     be different than the Assumed Existing Conditions.

32.  Paragraph 8.6.1 is amended by deleting "the submission of the
     Design/Builder's Proposal" and substituting in lieu thereof, the following:
     "The Design/Builder giving its Guaranteed Maximum Price."

33.  Article 10 is amended by deleting same in its entirety and substituting, in
     lieu thereof, the following:

     "10.1  All claims, disputes and other matters in question between the
     Design/Builder and the Owner arising out of, or relating to this Agreement,
     the Project, the Work, the Contract Documents or the breach thereof may
     together or separately as the Owner and Deign/Builder see fit be decided by
     arbitration in accordance with the Construction

                                      -8-
<PAGE>

     Industry Arbitration Rules of the American Arbitration Association then
     obtaining as modified hereby.

          Any arbitration arising out of or relating to this Agreement, the
          Project, the Work, the Contract Documents, or the breach thereof may
          include by consolidation, joinder or in any other manner, any other
          entities or persons whom the Owner believes to be substantially
          involved in a common question of fact or law.  In the event that more
          than one claim, dispute, or other matter in question, shall be in
          existence at the same time, the Owner and Design/Builder may decide
          which of such claims, disputes or other matters in question shall be
          arbitrated and which shall not be arbitrated.  Such decision shall be
          final and unappealable, and no arbitration shall be authorized to
          consider, decide, or make any award on any claim or matter which Owner
          and Design/Builder have determined shall not be arbitrated.

          In the event that the Owner or Design/Builder wishes to request
          arbitration of any claim, dispute or other matter in question, they
          shall file a notice of demand for arbitration in writing with the
          other party specifically describing the claims, disputes and other
          matters in question which the Owner or Design/Builder wishes to submit
          to arbitration.

          The Owner and Design/Builder shall have the right, but not the
          obligation, by so electing in their arbitration demand, to invoke the
          following method of selection of arbitrators in lieu of that otherwise
          provided by the American Arbitration Association Rules.  If the Owner
          or Design/Builder so elects in its notice of demand for arbitration,
          the Owner or Design/Builder may appoint one party-appointed arbitrator
          in its notice of demand for arbitration.  If the Owner or
          Design/Builder does so, the other party may, within ten (10) days,
          appoint a second party-appointed arbitrator.  These two party-
          appointed arbitrators shall, within thirty (30) days, or such further
          time as may be agreed upon between the Owner and the Design/Builder,
          appoint a third party-appointed arbitrator.  If the party-appointed
          arbitrators fail to appoint a third arbitrator, the third arbitrator
          shall be appointed in accordance with the Construction Industry
          Arbitration Rules of the American Arbitration Association.

          The Owner and Design/Builder may elect to have the discovery rights
          and procedures provided by the Federal Rules of Civil Procedure to be
          available and enforceable within the arbitration proceeding.

          Any request or demand for arbitration hereunder shall be made before
          the date when institution of legal or equitable proceedings based on
          such claim, dispute or other matter in question would be barred by the
          applicable statute of limitations.

          This agreement to arbitrate shall be specifically enforceable by the
          Owner and Design/Builder under the prevailing arbitration law.  Any
          award

                                      -9-
<PAGE>

          rendered by arbitrators shall be final and enforceable by any party to
          the arbitration, and judgment may be rendered upon it in accordance
          with applicable law in any court having jurisdiction thereof.

          The Design/Builder and Owner mutually agree to arbitrate under the
          terms and conditions outlined above in this paragraph.

          Unless otherwise agreed in writing, and notwithstanding any other
          rights or obligations of either of the parties under any Contract
          Documents or agreements, Design/Builder shall carry on with the
          performance of its services and duties hereunder during the pendency
          of any claim, dispute, other matter in question or arbitration or
          other proceeding to resolve any claim, dispute or other matter in
          question, and the Owner shall continue to make payments in accordance
          with the Contract Documents, but the Owner shall be under no
          obligation to make payments on or against such claims, disputes, or
          other matters in question, during the pendency of any arbitration or
          other proceeding to resolve such claims, disputes or other matters in
          question."

34.  Paragraph 11.2.1 is amended by deleting same in its entirety and
     substituting, in lieu thereof, the following:

     11.2.1 Design/Builder, prior to the award for a particular portion of the
     Work, shall furnish to Owner in writing the names of the persons or
     entities (including those who are to furnish materials or equipment
     fabricated to a special design) proposed for such portion of the Work,
     together with sufficient documentation, upon Owner's request, for Owner to
     review the qualifications, capabilities and financial capacity of each such
     proposed Subcontractor. Design/Builder shall not allow any such proposed
     person or entity to whom Owner has made reasonable objection to be
     subcontracted any portion of the Work, provided that such objection shall
     be made, if at all, in writing, within five days after Design/Builder
     submits names and supporting documentation to Owner. If Owner has timely
     made reasonable objection to any such proposed person or entity,
     Design/Builder may submit a substitute to whom Owner has no reasonable
     objection. Design/Builder shall make no substitution for any Subcontractor,
     person or entity previously selected if Owner makes reasonable objection to
     such substitution. Design/Builder shall not be required to contract with
     anyone against whom Design/Builder has a reasonable objection."

35.  Article 11 is amended by adding the following Paragraphs 11.2.2, 11.2.3,
     11.2.4, 11.2.5, 11.2.6, and 11.2.7:

     11.2.2 The Owner agrees that the following Trades do not require a pre-bid
     process as stated in 11.2.1 and Design/Builder has the authority to enter
     into Subcontract agreements with the following:

          . Westside Mechanical:             HVAC/Piping
          . Cecchin Plumbing:                Plumbing/Site Utilities

                                     -10-
<PAGE>

          . Continental Electric:         Electrical/Controls
          . Aetna Engineering:            Structural Steel Fabrication/Erection

     11.2.3 By appropriate agreement, Design/Builder shall require each
     Subcontractor, to the extent of the Work to be performed by such
     Subcontractor, to be bound to Design/Builder or by the terms of the
     Contract Documents, and to assume toward Design/Builder all of the
     obligations and responsibilities which Design/Builder, by these Contract
     Documents, assumes toward Owner, and Owner's Lender. Design/Builder shall
     require each Subcontractor to enter into similar agreements with its
     subcontractor, prior to the execution of the proposed Subcontract
     therewith, copies of the Contract Documents to which the Subcontractor will
     be bound by this Article. Design/Builder shall require each Subcontractor
     to make copies of the Contract Documents available to all Subcontractors.

     11.2.4 Design/Builder is free to divide the Work according to its
     discretion, so long as such divisions are made so as to avoid labor
     disputes. In the event of a conflict related to trade jurisdiction,
     Design/Builder shall take immediate action as necessary to prevent, if
     possible, and otherwise to mitigate any work delay arising therefrom.

     11.2.5 Design/Builder shall coordinate the efforts of its Subcontractors so
     that no part of the Work is duplicated or omitted, and shall require its
     Subcontractors to proceed with the Work in accordance with the Construction
     Schedule and in such order as Owner, through Design/Builder, may direct.
     Design/Builder agrees that it is as fully responsible to Owner for the acts
     and omissions of its Subcontractors and of persons either directly or
     indirectly employed by the, as Design/Builder is for the acts and omissions
     of persons directly employed by Design/Builder.

     11.2.6 Nothing contained herein shall create any contractual obligation
     between any Subcontractor and Owner; provided, however, that each
     Subcontract shall provide that Owner, at Owner's option, shall have the
     right to cause the Subcontractor to perform for the benefit of Owner the
     remainder of the work covered by such Subcontract in the event that the
     Contract is terminated, so long as Owner shall have paid to Design/Builder
     all amounts then due such Subcontractor as and thereafter Owner continues
     to pay the amounts due such Subcontractor as they come due.

     11.2.7 Design/Builder shall require each Subcontractor to carry insurance
     required pursuant to Paragraph 7.1-4.

36.  Article 11 is amended by adding the following paragraphs 11.3.4, 11.3.5,
     11.3.6, 11.3.7, and 11.3.8:

     "11.3.4 If any part of the work to be performed by other contractors and
     subcontractors depends for proper execution upon Design/Builder Work, then
     such separate contractor or subcontractor shall, prior to preceding with
     such work, promptly report to Design/Builder any apparent discrepancies or
     defect in Contractor's Work that render it unsuitable for such proper
     execution and results. Failure of such other contractor to report same
     shall constitute an acceptance of Design/Builder's Work as fit and proper
     to

                                     -11-
<PAGE>

     receive such separate contractor or subcontractor's work, except as to
     latent defects in Design/Builder's Work.

     11.3.5  Owner and Design/Builder each will provide for the coordination of
     the work of its own forces and of each separate contractor with the Work of
     Design/Builder, who shall cooperate therewith as provided in Article 11.
     All Work shall be coordinated through Owner and Design/Builder prior to
     proceeding. In particular, no cutting or fitting, layout, etc., shall be
     done without the prior approval of Owner and Design/Builder.

     11.3.6 If any part of Design/Builder Work depends for proper execution or
     results upon the work of Owner or any separate contractor, Design/Builder
     shall, prior to proceeding with the Work, promptly report to Owner any
     apparent discrepancies or defects in such other work that render it
     unsuitable for such proper execution and results. Failure of Design/Builder
     to report same after the same becomes apparent shall constitute an
     acceptance of such separate contractor's work as fit and proper to receive
     Design/Builder's Work, except as to latent defects in such Work or with
     respect to any preceding portion of the Work for which Design/Builder
     receives a Change Order with respect to correcting such defect, Contractor
     shall correct the same.

     113.7 Should Design/Builder wrongfully cause damage to the Work or property
     of Owner or any separate contractor or subcontractor, or to other work on
     the Site, including, without limitation, damage caused by defective or ill-
     timed work, Design/Builder shall promptly remedy such damage and promptly
     attempt to resolve any dispute arising therefrom.

     11.3.8 Any costs caused by defective or ill-timed work which is brought to
     the attention of Owner pursuant to this Article or which results from
     latent defects shall be borne by the party responsible thereof, without
     reimbursement; provided however, in the event that (a) such damage was not
     caused by Design/Builder's gross negligence or (b) such damage was caused
     by a Subcontractor's work and Design/Builder is unable, after using good
     faith efforts, to have such Work corrected by such Subcontractor on a
     timely basis, after taking into account the Completion Schedule,
     Design/Builder shall be able to charge such costs incurred to correct such
     defective work as a Cost of the Work. In the event that the Contractor
     later obtains a backcharge from the appropriate Subcontractor for such
     defective work, Design/Builder shall credit the Cost of the Work."

37.  Paragraph 11.5 is amended by deleting paragraphs 11.5.1 and 11.5.2 in their
     entirety and substituting, in lieu thereof, the following paragraphs
     11.5.1, 11.5.2, 11.5.3, 11.5.4, 11.5.5, 11.5.6, 11.5.7, 11.5.8, 11.5.9,
     11.5.10, 11.5.11 and 11.5.12:

     "11.5.1 To the extent permitted by law, Design/Builder shall indemnify,
     defend, save and hold Owner, all its employees, officers, directors and
     stockholders and such other persons and entities as Owner may from time to
     time designate (all of the foregoing being herein collectively called
     "Indemnitees") harmless from and against all loss and expense (including
     reasonable attorney's fees and other costs and expenses) by reason of the
     liability imposed by law upon the Indemnitees, or any of them, for damages
     because of

                                     -12-
<PAGE>

     bodily injury, occupational sickness or disease, including death resulting
     therefrom, sustained by any employees of Design/Builder while at the Site
     where Work under this Agreement is being conducted or elsewhere, while
     engaged in the performance of Work under the Agreement, or sustained by any
     person or persons other than employees of Design/Builder relating to the
     Work (including such injuries as result from any act or omission of
     Design/Builder which are alleged to be actionable against Indemnitees or
     any of them), whether attributable to a breach of statutory duty or
     administrative regulation or otherwise, and such injuries for which
     liability is imputed to the Indemnitees, or any of them, or claims for
     property damage because of injury to or destruction of tangible property
     (other than the Work itself to the extent the damage or injury thereto
     results from a loss covered by Owner's policy of builder's risk insurance,
     including loss of use resulting therefrom), directly or indirectly arising
     or alleged to arise out of the performance of or the failure to perform the
     Work or the failure to protect or the Project Parcel, or the condition of
     the Work, the Project Parcel, adjoining land or driveways, or streets or
     alleys used in connection with the performance of the Work. The obligations
     of Design/Builder under this Paragraph 11.5.1 shall extend to the liability
     of Design/Builder and its employees and design subcontractors arising out
     of (1) the preparation or approval of maps, Drawings, opinions, reports,
     surveys, Change Orders, designs or Specifications, or (2) the giving of or
     failure to give directions or instructions by Design/Builder,
     Design/Builder's agents or employees provided such giving or failure to
     give is a cause of the injury or damage.

     11.5.2 Without limiting the generality of the foregoing, such defense and
     indemnity set forth in Paragraph 11.5.1 includes, subject only to the
     limitations contained in Paragraph 11.5.1, all liabilities, damages,
     losses, claims, demands and actions on account of bodily injury, death or
     property loss to an Indemnitee or to any other persons or entities, whether
     based upon, or claimed to be based upon, statutory (including the
     generality of the foregoing, workmen's compensation), contractual, tort or
     other liability of any Indemnitee. In addition, such defense and indemnity
     shall include all liabilities, damages, losses, claims, demands and actions
     on account of bodily injury, death or property loss to an Indemnitee or to
     any other persons or entities, whether based upon, or claimed to be based
     upon, statutory (including the generality of the foregoing, Workmen's
     Compensation), contractual, tort or other liability of any Indemnitee. In
     addition, such defense and indemnity shall include all liabilities,
     damages, losses, claims, demands and actions for defamation, false arrest,
     malicious prosecution or any other infringement or similar rights.

     11.5.3 The obligation set forth in this Paragraph 11.5 shall, but not by
     way of limitation, specifically include all claims directly or indirectly
     alleged to arise under any scaffolding, Structural Work Safe Place Law, or
     any law with respect to the protection of adjacent landowners.

     11.5.4  The obligations set forth in this Paragraph 11.5 shall not include
     any claims arising solely from the negligence of the party asking to be
     defended, indemnified or saved harmless.

                                     -13-
<PAGE>

     11.5.5 Design/Builder shall be notified of any claims against the
     Indemnitees of which Owner has notice, and Owner shall give Design/Builder
     such reasonable information and assistance as may be requested by
     Design/Builder to perform the obligations set forth in this Paragraph 11.5;
     provided, however, that (1) failure to notify Contractor of any claim shall
     not relieve Design/Builder of any obligations contained in this Paragraph
     11.5 (except to the extent that such failure would relieve Design/Builder's
     insurers from the duty to insure and defend Design/Builder or allow
     Contractor to mitigate damages); and (ii) the obligation of Owner to give
     information and assistance shall be at Design/Builder's expense and shall
     not obligate Owner to incur any expense or liability.

     11.5.6 The foregoing indemnification remedy shall not deprive Owner, or
     Owner's Lender of any other indemnity action, right or remedy otherwise
     available to the, or either of the, under Contract Documents, at common law
     or otherwise.

     11.5.7 Neither the provisions of, nor any limitations upon the indemnity
     provided for in this Paragraph 11.5 shall be construed to (i) indemnify any
     Indemnitee from the consequences of its own separate negligent acts or
     omissions, (ii) eliminate or reduce any other indemnification, right or
     remedy which Owner, or Owner's Lender has under Contract Documents or
     otherwise, or (iii) deprive any Indemnitee, as an additional insured or
     otherwise, of the benefits of any insurance required to be carried by
     Design/Builder under the Contract Documents.

     11.5.8 Design/Builder expressly understands and agrees that any performance
     or labor any material bond or insurance protection required by any
     provision of the Contract Documents, or otherwise provided by
     Design/Builder, shall in no way limit the responsibility to indemnify, save
     and hold harmless and defend each of the Indemnities as herein provided.

     11.5.9 Design/Builder shall cause the foregoing indemnification agreement
     by Design/Builder to be included in each subcontract between Contractor and
     a Subcontractor and shall be in favor of each of the Indemnities and
     Design/Builder, and at Owner's request, Design/Builder shall provide
     evidence satisfactory to Owner that it has fulfilled its obligation under
     this Paragraph.

     11.5.10 If any claim indemnified hereunder has not been settled or
     discharged when the Work is completed, Final Payment of the Contract Sum
     shall not be due, unless and until Design/Builder provides one of the
     following: a (i) bond in favor of Owner issued by a bonding company
     satisfactory to Owner, (11) other security acceptable in an amount equal to
     150% of the amount of any such claim. including interest on such claim as
     estimated by Owner, (iii) evidence that the insurer has acknowledged
     coverage of such issue and has undertaken defense of the same, or (iv)
     other security acceptable to Owner, which bond or other security shall be
     in form and substance reasonably satisfactory to Owner and shall be subject
     to such increase reasonably satisfactory to Owner and shall be subject to
     such increase as Owner may from time to time require as interest accrues on
     such claim.

                                     -14-
<PAGE>

     11.5.11 In any and all claims against any Indemnitee or any of its agents
     or employees by any employee of Design/Builder, anyone directly or
     indirectly employed by him or anyone for whose acts he may be liable, the
     indemnification obligation under this Paragraph 11.5 shall not be limited
     in any way by any limitation on the amount or type of damages, compensation
     or benefits payable by or for Design/Builder under workers' compensation
     acts, disability benefit acts or other employee benefit acts.

     11.5.12  The obligation of Contractor under this Paragraph 11.5 shall
     extend to the liability of Design/Builder and its design subcontractors,
     contractors and their employees, for claims, indemnities, liabilities,
     damages, losses, demand and actions arising out of the rendering of, or the
     failure to render, any professional services, including (a) the preparation
     of approval of maps, Plans, drawings, opinions, reports, surveys, Change
     Orders, designs or Specifications, or (b) supervisory, inspection,
     architectural or engineering services."

38.  Paragraph 11.6 is amended by deleting Paragraph 11.6.1 and substituting, in
     lieu thereof, the following Paragraphs 11.6.1, 11.6.2 and 11.6.3:

     11.6.1 Owner and Design/Builder each binds itself, its successors,
     permitted assigns and legal representatives to the other party hereto and
     to the successors, assigns and legal representatives of such other party
     with respect to all covenants, agreements and obligations contained in the
     Contract Documents. Design/Builder shall not assign its rights or
     responsibilities in whole or in part under the Contract Documents without
     the prior written consent of Owner and Owner's Lender, which consent may be
     granted or withheld in Owner's and Owner's Lender's sole discretion, and
     any attempt at such an assignment shall be null and void. Further,
     Design/Builder shall, except with respect to Contractor's general business
     line of credit or general business bank financing, not assign any monies
     due or to become due to Contractor hereunder, without the previous written
     consent of Owner.

     11.6.2 If this Agreement is assigned by Owner to Owner's Lender, and if
     Owner's Lender (a) exercises its rights under such assignment and (b) cures
     any default in payment by Owner existing on the date of the exercise by
     Owner's Lender of its right under such assignment, then Design/Builder
     agrees to perform its covenants and obligations under this Contract and to
     release and discharge Owner from any liability whatsoever arising from this
     Agreement which occurs after the date of the exercise by Owner's Lender of
     its rights under such assignment; provided, however, Owner shall not be
     released from liability with respect to obligations accruing before the
     date of exercise by Owner's Lender and (ii) liability for payments becoming
     due after the date of such exercise to the extent Owner's Lender agrees in
     writing such payments. In no event shall the foregoing be deemed to deprive
     Design/Builder of its right and remedies at law and in equity, including
     but not limited to its statutory mechanic's lien rights and the rights to
     seek a monetary judgment against the Project Parcel and the Project.

     11.6.3  Unless otherwise consented to in advance by Design/Builder, Owner
     shall not transfer or assign its interest in the Project Parcel (other than
     to Owner's Lender) unless

                                     -15-
<PAGE>

     such transferee or assignee agrees to be liable to Contractor to the same
     extent as Owner is as set forth in the Contract Documents.

39.  Paragraph 11.7.1 is amended by deleting "the Architect or" in lines one and
     two, "other" in line two, "another architect or other" in line four, and
     "the Architect or other" in lines seven and eight.

40.  Paragraph 12.1 is amended by deleting Paragraphs 12.1.1 and 12.1.2 and
     substituting, in lieu thereof, the following Paragraphs 12.1.1 and 12.1.2:

     "12.1.1 Part 2 of this Agreement may be terminated by the Owner upon ten
     (10) days written notice at the Owner's election. In the event of
     termination at the Owner's election and not due to the fault of the
     Design/Builder, the Design/Builder shall be compensated for services
     performed to termination date, including a proportionate amount of profit,
     together with reimbursable expenses then due.

     12.1.2 If the Design/Builder defaults or persistently fails or neglects to
     carry out the Work in accordance with the Contract Documents or fails to
     perform the provisions of Part 2, of this Agreement, the Owner may give
     written notice that the Owner intends to terminate Part 2, of this
     Agreement. If the Design/Builder falls to correct, or commence the
     correction and diligently pursue its completion, the defaults within seven
     (7) business days after being given notice, the Owner may without prejudice
     to any other remedy make good such deficiencies and may deduct the cost
     thereof from the payment due the Design/Builder or at the Owner's option,
     may terminate the employment of the Design/Builder and take possession of
     the Project Parcel and of all materials, equipment, tools and construction
     equipment and machinery thereon owned by the Design/Builder as well as all
     drawings, plans, and specifications and finish the Work by whatever means
     the Owner may deem expedient. If the unpaid balance of the Contract Sum
     exceeds the expense of finishing the Work, the excess shall be paid to the
     Design/Builder, but if the expense exceeds the unpaid balance, the
     Design/Builder shall pay the difference to the Owner."

41.  Paragraph 12.2.1 is amended by deleting same in its entirety and
     substituting, in lieu thereof, the following:

     "If the Owner fails to make payment when due, the Design/Builder may give
     written notice of the Design/Builder's intention to terminate Part 2 of
     this Agreement. If the Design/Builder fails to receive payment within
     fourteen days after receipt of such notice by the Owner, the Design/Builder
     may give a second written notice and, fourteen days after receipt of such
     second written notice by the Owner, may terminate Part 2 of this Agreement
     and recover from the Owner payment for the cost of the Work to the date of
     termination plus the Design/Builder's fee relating to such work."

42.  Paragraph 13.1 is amended by deleting same in its entirety and
     substituting, in lieu thereof, the following:

                                     -16-
<PAGE>

     "13.1.1  For the Design/Builder's performance of the Work in this Part 2
     Agreement, including but not limited to the services described in Paragraph
     3.2, the Owner shall pay the Design/Builder in current funds the Contract
     Sum as follows:

          A    Subject, except as hereinafter provided, to additions and
               deductions by Change Order as provided in the Contract Documents,
               the Contract Sum consisting of (1) the Cost of the Work, as
               hereinafter defined, plus (2) a Design/Builder's Fee of five
               percent (5%) of the Cost of the Work, plus the sum of items (1)
               and (2) multiplied by 0.0075 for the cost of liability insurance,
               provided, however, that the Contract Sum shall not exceed the
               guaranteed maximum price ("GMP") of Fifteen Million Three Hundred
               Forty Four Thousand Four Hundred Thirty Nine and XX/100 Dollars
               ($15,344,439.00) in accordance with Exhibit C. Any savings
               between the Contract Sum and the GMP shall belong to the Owner.

          B.   The GMP has been established by the Design/Builder and includes
               the various categories set forth in the Schedule of Values
               attached hereto as Exhibit "C". The Schedule of Values includes
               the various categories of Construction Work as well as design and
               engineering costs, a fee of 5% and a Contingency of 2% and the
               cost of liability insurance of 0.75%. Certain of the categories
               in the GMP are Allowances.

     13.1.2 The words "Cost", "Cost of the Work", "Cost of Work" or "Cost of
     such Work", as used herein, shall mean the costs incurred by Design/Builder
     or in the performance of the design, engineering and construction portions
     of the Work for: all items of labor, including project office personnel,
     including time spent by such persons while in shops or on the road
     expediting such Work, home office personnel as provided in Paragraph
     13.1.5(d), and including such welfare and other benefits (such as benefits
     required by law or collective bargaining agreements and for personnel not
     covered by such collective bargaining agreements, customary benefits such
     as sick leave, medical and health benefits, holidays, vacations and
     pensions) as may be payable with respect thereto; all materials, supplies
     and equipment incorporated or to be incorporated in such Work, including
     costs of transportation and storage thereof; Work performed by
     Subcontractors including the costs of bonds provided by such Subcontractor;
     contributions, assessments or taxes for such items as unemployment
     compensation and social security, insofar as such costs are based on wages,
     salaries or other remuneration paid to employees of Design/Builder; sales,
     use or similar taxes related to the Work, and for which Design/Builder is
     liable, imposed by any governmental authority; premiums for all payment and
     performance bonds and insurance which Design/Builder is required by the
     Contract Documents to purchase and maintain, including cost (at the agreed
     rate of $0.75 per one hundred dollars of the sum of the "Cost of the Work"
     plus the Design/Builder's fee) of all liability insurance provided for in
     the Contract Documents (which includes the cost of umbrella liability
     insurance coverages reasonably allocable to such Work); amounts payable to
     architects and engineers pursuant to separate agreements with
     Design/Builder; maintenance of equipment (including gasoline, oil and
     repairs, but excluding normal wear and tear) and mileage allowances paid to
     Design/Builder's personnel in connection with the use of their vehicles for
     local travel in the prosecution of

                                     -17-
<PAGE>

     such Work; rental on scaffolding, hoists, trucks and any other equipment
     items which are normally required for a project of the type and size to be
     constructed pursuant to the Contract Documents, which equipment is now
     owned by Design/Builder or is obtained on a rental basis as provided
     herein; an amount equal to 10% of all such Work performed by Design/Builder
     with its own forces for trade work (not general conditions), which work
     shall not be performed without the prior written approval of the Owner,
     including labor, materials and equipment; the cost of any other items
     specifically and expressly provided for in the Contract Documents as being
     a Cost of the Work; the general condition items in the lump sum of $560,000
     as identified in Exhibit "D" attached hereto, except as revised pursuant to
     Change Orders approved pursuant to the Contract Documents; reimbursables;
     subject to the prior approval of Design/Builder both as to cost and
     subcontractor, the cost of any consultants regarding the Design/Builder's
     obligations, and any other miscellaneous project costs and general
     condition items which are approved by Owner, exclusive of the items listed
     below which are to be absorbed by Design/Builder or in Design/Builder's
     fee; legal costs, excluding any legal costs related to negotiating this
     Agreement, required in connection with the performance of its obligations
     under this Part 2 Agreement; provided, however, that (i) no salaries for
     the construction portion of the Work are to be included as a part of the
     Cost of Work, except those for personnel who are required for the direct
     execution, supervision and management of the Work at the Site; and (ii)
     Cost shall not include the items described in Paragraph 13.1.5.

     13.1.3 Cost includes maintenance of all materials, supplies, equipment,
     temporary facilities and hand tools not owned by the workers which are
     consumed in the performance of the Work. These costs must be submitted in
     an itemized fashion and specifically identified and justified by
     Design/Builder.

     13.1.4 Rental charges shall include all necessary machinery and equipment,
     exclusive of small tools, used at the site of such Work, such rental
     charges to be in addition to any proper charges for installation, minor
     repairs and replacements, dismantling, removal, transportation and delivery
     thereof, at rental charges consistent with those prevailing in the area.
     These costs must submitted in an itemized fashion on a monthly basis and
     specifically identified by the project manager. Equipment that is to be
     used on the Work that is owned and furnished by Design/Builder, for which
     Design/Builder expects to be reimbursed rentals for the use of, will be
     charged for at a rate equal to 80% of the standard book rate as reflected
     in the Rental Rate Blue Book for Construction, latest edition. These
     equipment charges shall be available for verification by Owner or its
     authorized designated agent on Design/builder's monthly contractor
     equipment charge sheet. Design/Builder shall give Owner 30 days' prior
     written notice of any items which Design,/Builder intends to rent, and such
     items shall be purchased upon Owner's direction and at Owner's discretion
     and upon such purchase shall be the property of Owner.

     13.1.5 The words "Cost", "Cost of the Work", "Cost of Work" or "Cost of
     such Work" shall not include the cost of the following items which shall be
     paid by Design/Builder and not reimbursed by Owner:

                                     -18-
<PAGE>

          (a)  costs incurred by Design/Builder, but not Subcontractors, in
               correction of defective or non-conforming Work caused by the
               gross negligence of Design/Builder;

          (b)  undepreciated value of all equipment transferable at Owner's
               option as usable items at the completion of the Work;

          (c)  the costs of bonds over mechanics' or materialmen liens of any
               Subcontractor, except to the extent the liens of subcontractors
               are filed due to the unexcused failure of Owner to make payments
               under the Contract Documents;

          (d)  all administrative home office expenses, other than the field
               office expenses; provided, however, that to the extent that the
               personnel costs of the schedulers, estimators and others are
               included in the Schedule of General Conditions attached hereto or
               would have been included had such persons been located at the
               Project Parcel and Design/Builder demonstrates to Owner that
               having such persons work in Design/Builder's home office enhances
               job efficiency, then the personnel costs of such schedulers,
               estimators and others shall be included;

          (e)  salaries and other compensation of home office personnel in
               whatever capacity employed, including salaries and other
               compensation of Design/Builder's officers, partners, principals,
               executives, general managers, estimators, auditors, accountants,
               purchasing and contracting agents and other employees at
               Design/Builder's home office;

          (f)  interest on capital employed either in plant or expenditures on
               such Work;

          (g)  Cost in excess of the maximum cost established for general
               conditions listed in Exhibit D;

          (h)  bonuses paid to Design/Builder's personnel and any other
               administrative costs;

          (i)  costs in excess of the GMP;

          (j)  Intentionally deleted.

     13.1.6 All cash discounts received by Design/Builder shall accrue to Owner
     in total, and all quantity and trade discounts, rebates and refunds and all
     returns from sale of surplus material shall be applied as a reduction of
     cost of materials, services and other items purchased by Design/Builder for
     performance of such Work. The foregoing shall not apply to discounts for
     items for which Design/Builder has advanced payment from Design/Builder's
     own funds.

     13.1.7 Design/Builder shall check all materials and labor utilized during
     the course of such Work and shall keep full and detailed records and
     accounts thereof in keeping with

                                     -19-
<PAGE>

     good business management practices, and the system utilized shall be such
     as is reasonably satisfactory to Owner's auditor and Owner's Lender and
     their auditors. timekeepers and clerks shall at all reasonable times be
     afforded access to such Work and to all Design/Builder's books, records,
     correspondence, instructions, drawings, receipts, vouchers. memoranda,
     etc., relating to such Work and Design/Builder shall preserve all such
     records for a period of three (3) years after the final payment hereunder.
     At the Owner's expense such records shall then be delivered to Owner. The
     foregoing shall not deprive Owner's Lender of access to the Work in
     accordance with the Contract Documents.

     13.1.8 Design/Builder will keep complete and detailed books and records
     which will accurately reflect Costs. Such books and records and all
     supporting data shall at all reasonable times and upon reasonable notice
     during the course of construction be open for audit, inspection and copying
     by Owner and its authorized representatives. These books, records and data
     shall be retained and available for audit, inspection and copying for a
     period of five years after such Work has been completed. At the Owner's
     expense, Design/Builder shall deliver the originals or a copy of all of
     such books and records to Owner at the time of the expiration of such five-
     year period or at such earlier date in the event that Design/Builder
     desires to dispose of such books and records prior to the expiration of
     such five-year period.

43.  Paragraph 14 is amended by deleting same in its entirety and substituting,
     in lieu thereof, the following:

     "14.1.l The construction services of the Design/Builder shall be deemed to
     have commenced on or prior to the date of this Part 2 Agreement and
     Substantial Completion of the Project shall be achieved by October 16,
     2000, subject to revision as provided in the Contract Documents ("Delivery
     Date"). The Owner and the Design/Builder acknowledge that if Substantial
     Completion of the Project does not occur on or before the Delivery Date,
     the Owner will incur substantial damages, and, therefore, Owner and
     Design/Builder agree that if the Substantial Completion of the Project does
     not occur on or before the fourteenth (14th ) day following the Delivery
     Date, Design/Builder shall pay the Owner, which payment shall be Owner's
     sole remedy with respect to Design/Builder's failure to achieve Substantial
     Completion by the Delivery Date until Substantial Completion as follows:

          (a)  for the first thirty (30) days, Two Thousand Five Hundred Dollars
               ($2,500) per day;

          (b)  for the next thirty (30) days, Five Thousand Dollars ($5,000) per
               day;

          (c)  thereafter, Ten Thousand Dollars ($10,000) per day.

          (d)  In no event shall the liquidated damages assessed exceed the
               Design/Builder's fee for the Project.

     14.1.2  If Owner desires to accelerate performance of any part of the Work,
     Owner may request such acceleration, in which event Design/Builder shall
     advise Owner to what

                                     -20-
<PAGE>

     extent if any, in the judgment of Design/Builder, overtime Work will be
     required to accomplish such acceleration and the estimated extra actual
     out-of-pocket cost resulting from the use of such overtime. If upon receipt
     of such estimate from Design/Builder, Owner still desires to accelerate
     performance of such part of the Work, Owner shall issue a Change Order for
     such Work. Design/Builder shall perform on such accelerated basis, and
     Owner shall pay the actual extra cost resulting from the use of overtime.

     14.1.3 If Design/Builder is delayed at any time in the progress of the Work
     by (i) any act or neglect of Owner, (ii) any separate design/builder
     employed by Owner, (iii) changes in the Work ordered by Owner, (iv) fire or
     other unavoidable casualties, (v) labor disputes (subject to the provisions
     herein), (vi) unusual delay in transportation, (vii) uncustomary adverse
     weather conditions not reasonably anticipated, (viii) any causes beyond the
     reasonable control of Design/Builder, or (ix) delay authorized by Owner,
     then the Contract Time shall be extended by Change Order for such
     reasonable time as the Owner may determine and solely with respect to
     delays pursuant to (i), (ii), (iii) and (ix), the Design/Builder may also
     make claims to adjust the Contract Price to reflect its reasonable costs,
     as determined by the Owner, incurred as a result of any such delay. In no
     event shall any such extension of Contract Time exceed the actual period of
     time lost by reason of the causes aforesaid. In all events, Design/Builder
     shall use Design/Builder's best efforts to eliminate the cause of any delay
     or minimize any delay.

     14.1.4 Any claim for extension of time shall be made in writing to Owner
     not more than seven days after the commencement of the delay; otherwise it
     shall be waived. In the case of a continuing delay, only one claim is
     necessary. The presentation of any such claim shall not establish the
     validity of the claim. With such claim Design/Builder shall provide an
     estimate of the probable effect of such delay on the progress of the Work,
     and Design/Builder shall immediately take all steps reasonably necessary to
     lessen the adverse impact of such delay.

44.  The following provisions shall be inserted in the Agreement:

     "15.1.1 If for any reason labor employed by Design/Builder (or any other
     person or entity engaged by Design/Builder in connection with the Work or
     for whose work Design/Builder is responsible) takes any action with the
     intent of impeding or stopping the progress of the Work, or individually or
     in concert with others, unlawfully strikes, slows down or otherwise engages
     or participates in any other withholding of or interference with services
     (including honoring pickets or picket lines, improperly performing work
     required to be performed under the Contract Documents or making claims
     resulting in work jurisdiction disputes), and all or any of such actions
     impede or stop the progress of the Work (any such action herein referred to
     as "Improper Practice"), Owner shall have the right to require that
     Design/Builder and/or any such other person or entity take all reasonable
     action to bring about a return to normal operations and the cost thereof
     shall be a Cost of the Work.

     15.1.2 In addition, if the Improper Practice is subject to grievance and/or
     arbitration procedure under an applicable labor agreement between
     Design/Builder or such other person or entity and a union, Design/Builder
     shall be required, at Design Builder's

                                     -21-
<PAGE>

expense as a Cost of the Work, to (and Contractor shall require all such other
persons or entities to) take all action, including legal action, as may be
required, to have the dispute resolved by such grievance or arbitration
procedure, including obtaining, prompt injunctive relief under state or federal
law. Notwithstanding such procedures, Design/Builder shall not be relieved of
its obligation to maintain the progress of the Work according to the
Construction Schedule if the Improper Practice results from a jurisdictional
dispute among laborers or trades employed by Design/Builder with respect to the
prosecution of the Work. Design/Builder shall be entitled to (i) an extension of
the Contract Time and (ii) if Design/Builder is not in default of its
obligations under Paragraph 15.1.1 above, reimbursement from Owner for
Design/Builder's direct out-of-pocket expenses associated therewith, expressly
excluding, however, any profit or fee associated therewith (but there shall be
no adjustment of the Contract Sum) with respect to Improper Practice resulting
from other types of labor disputes. Design/Builder agrees to use its best
efforts to minimize such delays in the progress of the Work.

15.1.3  In the event that Design/Builder or other such person or entity fails,
in the reasonable opinion of Owner, to take prompt remedial action as provided
above, Owner shall have the right after 72 hours' notice to Design/Builder to
(a) take such action in the name of Design/Builder and/or other person or entity
as may be reasonably necessary to obtain an end to the Improper Practice,
including legal action, and (b) back-charge all costs and expenses connected
therewith to Design/Builder, including legal, accounting, administrative and,
other direct, indirect, general and special expenses all of which shall be
deemed Cost of the Work.

15.1.4  Without limitation of the foregoing in the event that the Improper
Practice is found by an arbitration, a grievance committee or a court of proper
jurisdiction, to have been caused primarily by Design/Builder or a Subcontractor
and Design/Builder shall fail to fully comply or shall fail to cause said
Subcontractor to fully comply with the order of such arbitrator, grievance
committee or court with respect thereto, Contractor shall be deemed to have
committed an event of default under this Contract.

15.1.5  Notwithstanding the foregoing provisions of Paragraph 15, no labor
action shall be deemed an Improper Practice if it is a strike of workers within
a particular trade throughout the standard metropolitan statistical area in
which the Project Parcel is located, and in such event for such trades on the
critical path for completion, Design/Builder shall be entitled to claim an
extension of the Contract Time to the extent of the delay caused by such strike.

16.1.1  If the Contract Documents or any Government Requirements require any
portion of the Work to be inspected, tested or approved, Design/Builder shall
give Owner timely notice (not less than 48 hours' prior notice) of its readiness
so Owner may observe such inspection, testing or approval. Design/Builder will
retain the services of a testing laboratory(ies) or service organization
reasonably satisfactory to Owner for purposes of such inspections, tests or
approvals.

16.1.2  If Owner determines that any Work requires special inspection, testing
or approval which Paragraph 16.1.1 does not include, Owner will instruct
Design/Builder to

                                     -22-
<PAGE>

arrange for such special inspection, testing or approval, and Design/Builder
shall give notice of its readiness therefor as provided in Paragraph 16.1.1. Any
testing laboratory or service organization retained by Design Builder for such
purposes must be reasonably satisfactory to Owner. If such inspection or testing
reveals a failure of the Work to comply with the requirements of the Contract
Documents, Contractor shall bear all costs hereof, and shall correct same in
accordance with the Contract Documents; otherwise Owner shall bear such costs,
and an appropriate Change Order shall be issued to adjust the Contract Sum.

16.1.3  Required certificate of inspection, testing or approval shall be secured
by Design/Builder and promptly delivered by Design/Builder to Owner.

16.1.4  Design/Builder shall not be relieved of Design/Builder's obligations to
perform or cause performance of the Work in accordance with the Contract
Documents by reason of any errors or omissions contained in any tests performed
by or for Owner, notwithstanding that such tests and the results thereof may
have been delivered to Design/Builder and that Design/Builder may have relied
upon the correction of such tests. The fact that Owner may have provided to
Design/Builder any such tests or the results thereof, shall not relieve
Design/Builder of the obligation to provide all testing necessary to assure
Design/Builder that the Work performed by Design/Builder is in compliance in all
respects with the requirements of the Contract Documents.

16.1.5  Design/Builder shall coordinate the activities of all entities
conducting tests or inspections by or for Owner and shall cooperate fully with
such entities so as to facilitate such tests and inspections.

16.1.6  Separate testing required by or performed by Owner consistent with
normal practice in constructing projects similar to the Project shall not
entitle Design/Builder to any adjustment in the Contract Sum or extension of the
Contract Time.

17.1.1 Attached hereto as Exhibit C, which may be amended from time to time, is
a schedule of values allocated to the various portions of the Work based on the
Project Budget included in the Design/Builder Proposal. Additionally,
contemporaneously with agreeing upon a GMP for the Work as set forth in the
Agreement, Design/Builder shall submit to Owner a schedule of values allocated
to the various portions of the Work, including all of the Work, having at least
the same level of detail as contained on Exhibit C, and otherwise prepared in
such form to substantiate its accuracy as Owner may reasonably require. Owner
shall have final approval over the schedule of values. The applicable schedule
of values, unless reasonably objected to by Owner, shall be (i) used only as a
basis for Design/Builder's applications for payment, and (ii) updated and
revised from time to time at Owner's or Design/Builder's request.

17.1.2  Unless otherwise agreed in writing by the Owner, in connection with each
progress payment, Design/Builder shall submit to Owner no later than the 25th
day of each month an itemized application for payment, on A.I.A. Form G-702
(with 703 extension), notarized, supported by such documents and data
substantiating Design/Builder's right to payment as Owner may reasonably require
(it being agreed by

                                     -23-
<PAGE>

Contractor that in no event shall Owner be deemed to have been unreasonable if
Owner requires items which are required by Owner's Lender), and reflecting
retainage as provided elsewhere in the Contract Documents. All other deliveries
required by the Contract Documents to be made with each application for payment
shall also be timely delivered. Notwithstanding anything to the contrary
contained in the Contract Documents, Owner may require, as a condition of the
approving and/or making a progress payment, that Design/Builder furnish (a) with
respect to the current application for payment, an affidavit listing every
Subcontractor in connection with the Work and the amounts due or to become due
to such Subcontractors for Work done and materials furnished through the date of
said application for payment; (b) with respect to the current application for
payment, a certified payroll for such month; and (c) with respect to the payment
made for the preceding month, evidence satisfactory to Owner (including paid
invoices for which payment has been made, releases, Design/Builder's affidavits
averring to full payment of all labor and materials covered in said application
for payment, and partial lien waivers from all Subcontractors) that all
payrolls, bills for materials and equipment delivered to the Project Parcel, and
other indebtedness related to the Work and giving rise to all previous
applications for payments up to, but not including, the current one have been
paid in full or otherwise satisfied; (d) a lien waiver from Design/Builder
covering all Work performed through the date of said previous application for
payment; (e) a sworn acknowledgment of payments and credits to which Owner is
entitled by Design/Builder; (f) bills of sale as provided below; and (g)
Design/Builder's statement of percentage of completion, provided, however, that
notwithstanding any provisions of the Contract Documents, which may appear to be
contrary, Owner shall in no event be obligated to pay to Design/Builder an
amount which exceeds the Cost of the Work incurred by Design/Builder to the date
of the Contract application for payment plus a proportionate part of
Design/Builder fees less amounts paid to date and less retainage as provided
elsewhere in the Contract Documents. If requested by Owner, applications for
payments shall be submitted directly to Owner's Lender. In addition,
Design/Builder agrees to provide any additional information or documents that is
reasonably requested by any escrow agent with respect to any escrow agreement
relating to the Work that Contractor is either a party to or has consented to
the terms thereof. The Owner shall retain from any payments due Design/Builder
hereunder, except amounts due for design and engineering, (x) an amount equal to
ten per cent (10%) of the cost of labor and material eligible for payment with
respect to each Subcontractor until each portion of the Work covered by each
subcontract in place plus stored materials related thereto is 50%, and (y) an
amount equal to ten per cent (10%) of the Design/Builder's Fee until 50% of the
total amount of the Design/Builder Fee is eligible for payment, after which time
no further retainage shall be withheld. All retainage shall be released with the
Final Payment.

17.1.3  Each application for payment shall be accompanied by (i) a supplement to
the schedule of values submitted pursuant to Paragraph 17.1.1 indicating any
changes to the amounts allocated to the various portions of the Work, (ii) a
statement by Design/Builder setting forth in detail any deviations from the
Contract Schedule, (iii) if requested by Owner, a log showing on a cumulative
basis through not less than fifteen days prior to the application for payment,
all submissions of Shop Drawings, Samples and Product Data, and (iv)
photographs, as directed by Owner, dated and noted as to orientation.

                                     -24-
<PAGE>

17.1.4  The following minimum documentation shall be submitted by Design/Builder
to Owner with each application for payment and sworn statement on the forms set
forth above or as required by Owner and Owner's Lender:

        (a)  Design/Builder's application for payment and original notarized
             sworn statement.

        (b)  Design/Builder's original conditional waiver of lien contingent
             upon receipt of payment for the amount requested in the current
             application.

        (c)  Design/Builder's original unconditional waiver of lien for the
             amount requested in the previous application for payment (for each
             application after the first) and paid by Owner.

        (d)  Documentation, pursuant to the provisions of the Contract Documents
             relating to stored materials and equipment for which Design/Builder
             is seeking payment.

        (e)  At the time of final payment, Design/Builder shall provide Owner
             with a final unconditional waiver of lien for the final amount
             paid.

        (f)  All waivers of lien, conditional and unconditional, partial or
             final, and all sworn statements must be signed by a representative
             of the Design/Builder duly authorized by Design/Builder to execute
             such legal documents and to legally bind the Design/Builder as set
             forth therein. Evidence of such authorization of Design/Builder's
             representative shall be provided by Design/Builder to Owner as set
             forth in subparagraph (k) below.

        (g)  Subcontractors - Partial/Progress/Monthly Payments.
             --------------------------------------------------

             For each primary tier Subcontractor with a subcontract in excess of
             $10,000, Design/Builder shall obtain and provide to Owner:

             (1) An original waiver of lien except that such waiver shall be
             provided to cover amounts requested in the Design/Builder's
             application for payment immediately preceding the current
             application for payment.

             (2) Current original, notarized affidavits listing all
             subcontractors and otherwise stating the source of labor and
             materials provided for the Work.

        (h)  Subcontractors - Final Payment.
               ------------------------------

             For each Subcontractor of any tier with a subcontract in excess of
             $10,000, Design/Builder shall obtain and provide to Owner:

             (1) An original final unconditional waiver of lien for the full
             subcontract amount.

                                     -25-
<PAGE>

18.1.1  Upon receipt of written notice that the Work is ready for final
inspection and acceptance and upon receipt of a final application for payment,
Owner will promptly make such inspection and, when Owner finds the Work fully
performed and acceptable under the Contract Documents, Design/Builder shall be
entitled to final payment upon the conditions in Paragraph 18.1.2 having been
satisfied.

18.1.2  Neither the final payment nor the retained percentage shall become due
until Design/Builder submits to Owner (1) an affidavit that all payrolls, bills
for materials and equipment, and other indebtedness connected with the Work for
which Owner or Owner's property might in any way be responsible, have been paid,
will be paid out of such payment or shall otherwise be satisfied, (2) consent of
surety, if any, to final payment, (3) data establishing payment or satisfaction
of all such obligations, such as receipts, releases and waivers of liens arising
out of this Agreement and all Subcontracts, to the extent and in such form as
may be designated by Owner and Owner's Lender, (4) an assignment to Owner of all
claims which Design/Builder has or may have against all Subcontractors, and (5)
all documents relating to the final payment as required by the Contract
Documents. In the event that any data required by Owner and Owner's Lender
pursuant to (3) above are not or cannot be furnished, then there shall be
furnished to Owner and Owner's Lender a bond or other security reasonably
satisfactory to Owner and Owner's Lender to indemnify Owner and Owner's Lender
against any liens. In lieu of providing a bond or other security, Design/Builder
may cause the title insurer which most recently insured title to the Project
Parcel to issue or endorse its policy of title insurance without exception for
such lien, which insurance shall include insurance against loss or damage by
reason of the unwillingness of any person to purchase the Project Parcel or to
lend money secured by all or any portion of the Project Parcel due to the
existence or possibility of any such lien. If any such lien remains unsatisfied
after all payments are made, Design/Builder shall refund to Owner all monies
that Owner may be compelled to pay in discharging such lien, including all costs
and reasonable attorney's fees. In addition, the following additional
conditions, or any thereof as may be required by Owner, shall have been
fulfilled prior to final payment:

(a)     Design/Builder shall have made, or caused to have been made, all
        corrections in its Work which are required to remedy any defects therein
        or obtain compliance with the applicable Plans and Specifications, to
        obtain a certificate of occupancy (except that if the correction in the
        Work in order to obtain a certificate of occupancy is due to
        noncompliance of the Plans and Specifications with Government
        Requirements and such noncompliance could not reasonably be expected to
        be discovered upon that review which is necessary for proper performance
        of the Work by a fully competent first-class contractor, such correction
        in the Work shall not be a condition to Design/Builder's right to final
        payment) or to fulfill any of the orders or directions of Owner required
        under the Contract Documents including any Punch List. Design/Builder
        shall, if required by Owner, deliver a certificate to Owner certifying
        that the Work has been completed in accordance with the Contract
        Documents, including any properly authorized changes thereto, and
        certifying any other matters Owner's Lender may require. Notwithstanding
        the foregoing, Owner will not withhold final payment on account of minor
        defects and incomplete items which do not prevent use and

                                     -26-
<PAGE>

     occupancy of the property for its intended purposes; instead there shall be
     withheld from final payment such amounts as Owner deems just, representing
     200% of the cost to complete the defective or incomplete items, such
     retained amounts to be disbursed to Design/Builder upon completion of such
     defective or incomplete items.

(b)  Contractor shall organize and have delivered to Owner, together with
     appropriate assignments, if any, all written guarantees, warranties,
     applications for payment and bonds required by the Contract Documents for
     Design/Builder's Work and all operation and maintenance instructions for
     equipment and apparatus and all permits, licenses, approvals, certificates
     and authorizations required by any Government Requirements, for which
     Design/Builder is responsible under the Contract Documents.

(c)  Design/Builder shall have delivered to Owner reproducible final drawings
     with notations and corrections showing Design/Builder's Work "as built" as
     well as Design/Builder's record drawings.

(d)  Owner shall have completed an audit of Design/Builder's books and records
     related to the Work; provided, however, that if Owner shall not have
     completed an audit of Design/Builder's books and records within 30 days of
     the date when all other conditions to the final payment have been made,
     then Owner shall be deemed to have waived its right under this Paragraph to
     require a completed audit as a condition to making the final payment (which
     waiver shall not affect Owner's ability to subsequently complete an audit
     of Design/Builder's books and records relating to the Work).

18.13  The making of final payment shall constitute a waiver of all claims by
Owner except those arising from:

(a)    unsettled liens;

(b)    defects or deficiencies in the Work;

(c)    latent failures of the Work to comply with the requirements of the
       Contract Documents;

(d)    terms of any warranties required by the Contract Documents;

(e)    claims involving Subcontractors or third parties; or

(f)    claims relating to Owner's audit of Contractor's books and records
       related to the Work.

18.1.4 The acceptance of final payment by Design/Builder shall constitute a
waiver of all claims by Design/Builder except those previously made in writing
and identified by Design/Builder as unsettled at the time of the final
application for payment.

                                     -27-
<PAGE>

19.1.1  Not used.

20.1.1  The Owner's Project Director (who shall be a person or entity designated
by Owner pursuant to a written notice to Design/Builder) shall have full
authority to settle all disputes on behalf of the Owner, to decide all
questions, and to examine and approve or reject all materials and workmanship;
provided, however, that such authority may only be exercised in a writing signed
by Owner's Project Director.

20.1.2  Owner's Project Director and on-site project representative will not be
responsible for and will not have control or charge of construction means,
methods, techniques, sequences or procedures, or for safety precaution programs
in connection with the Work and shall not be responsible for Design/Builder's
failure to carry out the Work in accordance with the Contract Documents. Neither
Owner's Project Director or on-site project representative shall be responsible
for or have control over acts or omissions of Contractor or any Subcontractor.

21.1.   'The Guaranteed Maximum Price ("GMP"), established pursuant to Paragraph
        13.1.1A, is the total of the following:

        (a)    The Design/Builder estimate of the cost of the Work, including
               lump sum General Conditions of $560,000 and certain Allowances.

         (b)   A contingency equal to 2% of the Cost of the Work.

         (c)   Design/Builder's Fee, for construction services, design and
               engineering services equal to 5.00% of the sum of (a) and (b)
               above.

         (d)   General Liability Insurance at a cost not to exceed 0.75 per one
               hundred dollars of the sum of (a), (b) and (c) above.

22.1.1   Allowances means the amounts stated in the determination of the GMP as
representing the estimated cost of any portion of the Work, other than the
Design/Builder's general conditions, for which a subcontract has not been
executed. Whenever such subcontract is executed and the amount thereof is
greater or lesser than the Allowance, the GMP shall be adjusted by Change Order
to reflect such difference.

23.1.1   Nothing in the Contract Documents shall be construed as imposing upon
Design/Builder any obligation to discover, remove, remediate or abate any
environmental hazards or conditions located in, on or about any part of the
Project Parcel, except for any such conditions caused by hazardous materials
brought upon the Project Parcel by Design/Builder or anyone acting by, through
or under Design/Builder. Except as provided above, Owner and Design/Builder
expressly negate any responsibility or liability of Design/Builder with respect
to hazardous materials. Hazardous materials, including but not limited to,
asbestos, PCB's and oil-contaminated soil may be encountered during the
performance of the Work. Owner shall make arrangements with a separate
contractor for the removal of such hazardous materials. Design/Builder shall,
pursuant to a Change Order increasing Contract Sum and extending the Contract
Time, coordinate the Work with the work of Owner's separate environmental
contractor.

                                     -28-
<PAGE>

24.1.1   Design/Builder warrants all Work performed and material and equipment
furnished against defects and deficiencies (it being agreed by Owner that
failure of any part of the Work due solely to misuse by persons other than
Design/Builder and Subcontractors shall not be deemed a defect or deficiency in
such part) which develop within (i) as to those portions of the Work not covered
by the following clause (ii), a period of one year from Substantial Completion
of the Work or if such defect is not discovered within one year from Substantial
Completion of the Work, a period of one year from the time such defect should
have been discovered with the exercise of reasonable diligence and in no event
should such warranty extend beyond three years from the date of acceptance of
the Work and final payment by Owner; (ii) the period specified in the Contract
Documents as to any part of the Work for which a period longer than one year is
specified. The foregoing time limitations shall not apply to defects and
deficiencies which are latent and not readily ascertainable by ordinary
observation. Notwithstanding the foregoing, in the event Design/Builder uses any
heating, ventilating or air conditioning facilities installed in the Project
prior to Substantial Completion, the warranty with respect to such heating,
ventilating or air conditioning facilities shall not commence until Substantial
Completion of the Work and Contractor shall fully maintain such equipment during
such temporary use and turn the equipment over to Owner in like new condition.

24.1.2   Contractor shall require each Subcontractor to execute and deliver to
Owner a warranty of the Work to be performed by such Subcontractor, in form
satisfactory to Owner which shall equal or exceed the requirements of Paragraph
24.1.1 above and shall be in such form and contain such context as shall be
agreed upon by Owner prior to the execution of such Subcontract for such Work.
Such warranty by a Subcontractor shall be enforceable directly by Owner against
each such Subcontractor and shall be in addition to any warranty provided by
Design/Builder herein.

24.1.3   Design/Builder shall obtain warranties with respect to all equipment
and materials and personal property supplied with respect to the Work from the
respective suppliers, at least as favorable as those generally supplied with
respect to such equipment, materials and personal property by the suppliers
thereof, which warranties shall be enforceable directly by Owner against such
suppliers and shall be in addition to any warranty provided by Design/Builder
herein or by any Subcontractor.

24.1.4   The warranties shall be executed in quadruplicate by the respective
Subcontractors not later than the date of payment to be made with Substantial
Completion of the applicable subcontract or purchase order. Design/Builder shall
obtain such warranties from each Subcontractor and deliver three executed copies
of each to Owner. Owner shall have no obligation to make the final payment with
respect to the portion of the Work provided by any Subcontractor which has not
delivered the warranties required of such Subcontractor.

25.1.1   Included within the Contract Sum are all sales, consumer, use, personal
property and other similar taxes applicable to the Work or any portion thereof
provided by Design/Builder.

                                     -29-
<PAGE>

     26.1.1 The Contract Documents consist of this Part 2 Agreement: Conditions
     of the Contract (General, Supplementary and other conditions) approved in
     writing by the Owner; Construction Documents consisting of Drawings and
     Specifications which are the bases for a GMP shall be attached hereto as
     Exhibit G at such time as the GNIP is agreed to; and Modifications issued
     after a document is attached. Design/Builder and Owner acknowledge that
     design and engineering is being done on a fast track basis; accordingly,
     Construction Documents and Conditions of the Contract for each completed
     design and engineering package will become part of the Contract Documents
     at such time each such package is agreed upon by the Owner and
     Design/Builder. The Design/Builder's Proposal shall not be deemed a
     Contract Document.

     27.1.1 Design/Builder shall draw upon its experience as a designer/builder
     of corporate center, research and development facilities to be responsible
     for integration of all equipment and systems in the building design and
     construction.

     28.1.1 Written notice shall be deemed to have been duly served if (i)
     actually received by the individual or member of the firm or entity or to
     an officer of the corporation for whom it was intended, (ii) delivered in
     person to Design/Builder's project manager at the Project, or (iii) if
     mailed, within three calendar days after the date it is sent by either
     registered or certified mail, or if sent by overnight courier, on the
     business day after it is delivered to such overnight courier, in each case
     addressed to Owner or Design/Builder, as the case may be, at the following
     addresses (or at such other address as Owner or Design/Builder, as the case
     may be may designate by notice to the other):

If to Owner:

     MediChem Research, Inc.
     12305 South New Avenue
     Lemont, Illinois  60439

     Attention: Edward Flavin, Vice President

With copies to:

     Holleb & Coff
     Suite 4100
     55 E.  Monroe Street
     Chicago, Illinois  60603

     Attention: Robert H. Gerstein

If to Design/Builder:

     Walsh Construction Company
     929 W.  Adams Street
     Chicago, Illinois  60607

     Attention:  Keith Kovach

                                     -30-
<PAGE>

29.1.1  Not used.

30.0    Shop Drawings, Product Data and Samples

30.1.1  Shop Drawings are drawings, diagrams, schedules and other data specially
prepared for the Work by the Design/Builder or a Subcontractor, Sub-
subcontractor, manufacturer, supplier or distributor to illustrate some portion
of the Work.

30.1.2  Product Data are illustrations, standard schedules, performance charts,
instructions, brochures, diagrams and other information furnished by
Design/Builder to Illustrate materials or equipment for some portion of the
Work.

30.1.3  Samples are physical examples which illustrate materials, equipment or
workmanship and establish standards by which the Work will be judged.

30.1.4  Shop Drawings, Product Data. Samples and similar submittals are not
Contract Documents. The purpose of their submittal is to demonstrate for those
portions of the Work for which submittals are required the way the
Design/Builder proposes to conform to the information given and the design
concept expressed in the Contract Documents.

30.1.5  The Design/Builder shall review and approve the Shop Drawings, Product
Data, Samples and similar submittals required by the Contract Documents with
reasonable promptness and in such sequence as to cause no delay in the Work or
in the activities of the Owner or of separate contractors. Submittals made by
the Design/Builder which are not required by the Contract Documents may be
returned without action.

30.1.6  The Design/Builder shall perform no portion of the Work requiring
submittal and review of Shop Drawings, Product Data. Samples or similar
submittals until the respective submittal has been approved by the
Design/Builder. Such Work shall be in accordance with approved submittals.

30.1.7  By approving and submitting Shop Drawings, Product Data, Samples and
similar submittals, the Design/Builder represents that the Design/Builder has
determined and verified materials, field measurements and field construction
criteria related thereto, or will do so, and has checked and coordinated the
information contained within such submittals with the requirements of the Work
and of the Contract Documents.

30.1.8  The Design/Builder shall be responsible for deviations from requirements
of the Contract Documents, Shop Drawings, Product Data, Samples or similar
submittals.

30.1.9  When professional certification of performance criteria of materials,
systems or equipment is required by the Contract Documents. the Design/Builder
shall be entitled to rely upon the accuracy and completeness of such
calculations and certifications.

31.0  The Owner, under separate contracts, intends to purchase equipment and
provide for the installation of such equipment by contractors other than the
Design/Builder. The Design/Builder acknowledges that included in its Basic
Services under this Part 2 Agreement is coordination with such manufacturers and
contractors to the extent that the

                                     -31-
<PAGE>

information is made available to the Design/Builder to the end that the
Design/Builder designs the Project to meet any requirements, specification or
performance standards required by such manufacturers and that the Basic Services
pursuant to Part 2 of this Agreement will include construction necessary to
allow incorporation of such equipment into the Project and allow same to be
operational.

                                     -32-

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