Document:

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                                                                   EXHIBIT 10.36

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

                                                                  EXECUTION COPY

                          TECHNICAL SERVICES AGREEMENT

         This Agreement is entered into as of October 18, 2001 (the "Effective
Date"), between EXULT, INC. ("PROVIDER") and INTERNATIONAL PAPER COMPANY
(together with the other members of the Company Group, "COMPANY").

The Parties agree to the terms and conditions set forth in this Agreement
including the Schedules referenced in this Agreement.

SIGNED FOR AND ON BEHALF OF PROVIDER:

Signature:
          --------------------------------

By:      [***]*

SIGNED FOR AND ON BEHALF OF COMPANY:

Signature:
          --------------------------------

By:      [***]*

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* Confidential information has been omitted

                          Technical Services Agreement
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                                TABLE OF CONTENTS

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Background...............................................................     1

Article 1.  Relationship Protocols.......................................     1
         1.1      Contracting Parties....................................     1
         1.2      Evolving Nature of Relationship........................     1
         1.3      Inherent Services......................................     2
         1.4      Changing Nature of Services............................     2
         1.5      Conflicts of Interests.................................     2
         1.6      Alternate Providers....................................     2
         1.7      Most Favored Customer..................................     2
         1.8      Additional Agreements..................................     2

Article 2.  The Services.................................................     3
         2.1      Obligation to Provide Services.........................     3
         2.2      Affiliate Participation................................     3
         2.3      Third Party Participation..............................     3
         2.4      Service Levels; Reporting..............................     3
         2.5      Service Credits; Fees at Risk..........................     4
         2.6      Sole and Exclusive Remedy; Option......................     4
         2.7      Disaster Recovery Services.............................     4
         2.8      Audits.................................................     4
         2.9      Change of Requirements.................................     5
         2.10     Regulatory Compliance..................................     5
         2.11     Use of Subcontractors..................................     7
         2.12     Special Projects.......................................     7
         2.13     New Services...........................................     7
         2.14     Required Consents......................................     8
         2.15     Responsibility for Data Accuracy.......................     8

Article 3.  Platform Components..........................................     8
         3.1      Component Rights.......................................     8
         3.2      Software and Hardware Migration........................     9
         3.3      Appointment as Company Representative..................     9
         3.4      License, Lease and Maintenance Fees....................    10
         3.5      Viruses................................................    10

Article 4.  Change Management............................................    10
         4.1      Change Control Procedures..............................    10

Article 5.  Transition and Resources.....................................    11
         5.1      Transition Plan........................................    11
         5.2      Affected Employees.....................................    11
         5.3      Resources..............................................    11

Article 6.   Service Staffing............................................    11
         6.1      Relationship Managers..................................    11
         6.2      Key Personnel..........................................    12
         6.3      Provider's Replacement of Personnel....................    12
         6.4      Retention of Experienced Resources.....................    12
         6.5      Efficient Use of Resources.............................    12
         6.6      Non-solicitation of Employees..........................    12

Article 7.  Charges and Disbursements....................................    13
         7.1      Charges................................................    13
         7.2      Taxes..................................................    13
         7.3      Service Credits........................................    14

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         7.4      Benchmarking...........................................    14

Article 8.  Invoicing and Payment........................................    14
         8.1      Invoicing..............................................    14
         8.2      Invoice Payment........................................    14
         8.3      Disputed Charges/Credits...............................    14
         8.4      Setoff Rights..........................................    15

Article 9.  Technology Rights............................................    15
         9.1      Pre-Existing Property..................................    15
         9.2      Development Works......................................    15
         9.3      Company License........................................    15
         9.4      No Other Licenses......................................    15
         9.5      Assignments............................................    15
         9.6      Other Agreements.......................................    15

Article 10.  Confidentiality.............................................    15
         10.1     Covenants..............................................    15
         10.2     Exclusions.............................................    16
         10.3     Limitations............................................    16
         10.4     Residual Rights........................................    16

Article 11.  Security....................................................    16
         11.1     Data Ownership and Privacy.............................    17
         11.2     Data Security..........................................    17
         11.3     Other Security Measures................................    17

Article 12.  Term and Termination........................................    18
         12.1     Term...................................................    18
         12.2     Renewal................................................    18
         12.3     Termination by Company for Cause.......................    18
         12.4     Termination by Company for Change of Control...........    19
         12.5     Termination by Company for Convenience.................    19
         12.6     Termination by Provider................................    19

Article 13.  Effect of Termination.......................................    19
         13.1     Survival of Selected Provisions........................    19
         13.2     Extension..............................................    19
         13.3     Services Transfer Assistance...........................    20
         13.4     Other Rights...........................................    20
         13.5     Winddown...............................................    22

Article 14.  Liability...................................................    22
         14.1     Damages and Liability Limits...........................    22
         14.2     Exclusions.............................................    23

Article 15.  Warranties..................................................    23
         15.1     Provider Warranties....................................    23
         15.2     Party Warranties.......................................    23
         15.3     Disclaimers............................................    23

Article 16.  Indemnities.................................................    24
         16.1     Indemnity by Provider..................................    24
         16.2     Indemnity by Company...................................    25
         16.3     Indemnification Procedures.............................    26
         16.4     Clarifications.........................................    26
         16.5     Primary Indemnification................................    26

Article 17.  Insurance...................................................    27
         17.1     Provider Insurance.....................................    27

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         17.2     Mutual Waiver of Subrogation...........................    27

Article 18.  Dispute Resolution..........................................    28
         18.1     Dispute Resolution Process.............................    28
         18.2     Continued Performance..................................    28

Article 19.  Force Majeure...............................................    28
         19.1     Force Majeure..........................................    28
         19.2     Exceptions.............................................    29

Article 20.  General Terms...............................................    29
         20.1     Governing Law..........................................    29
         20.2     Choice of Forum........................................    29
         20.3     Relationship of the Parties............................    29
         20.4     Publicity..............................................    29
         20.5     Entire Agreement, Updates, Amendments and Modifications    29
         20.6     Waiver.................................................    30
         20.7     Severability...........................................    30
         20.8     Counterparts...........................................    30
         20.9     Binding Nature and Assignment..........................    30
         20.10    Notices................................................    30
         20.11    No Third Party Beneficiaries...........................    30
         20.12    Other Documents........................................    31
         20.13    Consents and Approvals.................................    31

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                                LIST OF SCHEDULES

                  Account Governance Schedule (Schedule L)
                  Additional Agreements Schedule (Schedule X)
                  Affected Employees Arrangements Schedule (Schedule J)
                  Agreed Damages Exceptions Schedule (Schedule O)
                  Auditor Confidentiality Schedule (Schedule Y)
                  Benchmarking Schedule (Schedule P)
                  Change Control Schedule (Schedule K)
                  Charges Schedule (Schedule C)
                  Data Privacy and Security Procedures Schedule (Schedule Q)
                  Disaster Recovery Schedule (Schedule N)
                  Dispute Resolution Schedule (Schedule R)
                  Hardware Rights Schedule (Schedule M)
                  In Flight Projects Schedule (Schedule H)
                  Insurance Schedule (Schedule S)
                  Key Personnel Schedule (Schedule E)
                  List of Affected Employees Schedule (Schedule D)
                  Reports Schedule (Schedule U)
                  Service Levels (Schedule B)
                  Services Schedule (Schedule A)
                  Software Rights Schedule (Schedule F)
                  Technology Process Governance Schedule (Schedule V)
                  Termination Assistance Schedule (Schedule T)
                  Termination for Convenience (Schedule Z)
                  Third Party Participation Schedule (Schedule W)
                  Transition Plan Schedule (Schedule G)

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                                   BACKGROUND

            (i)   Company is a global forest products, paper and packaging
                  company, which, as of the Effective Date, has operations in
                  the U.S., Canada, Europe, Asia, Latin America and South
                  America. Presently, Company provides certain information
                  technology support services for the Company Group, including,
                  but not limited to, researching and responding to inquiries
                  from Company Group employees and agents regarding the
                  functionality of the Company Group's human resources, payroll
                  and benefits software applications.

Provider is a provider of integrated services designed to manage human resources
functions for large, multinational corporations, including those services
required by Company. After consideration of various service providers, Company
has chosen Provider as the service provider best qualified to assist Company in
achieving its goals and objectives. The Parties have documented in this
Agreement the terms and conditions under which Company agrees to purchase, and
Provider agrees to provide, such information technology support services.

This Background Section is intended as general background only and is not
intended to alter the plain meaning of the terms and conditions of this
Agreement or to require either Party to undertake performance obligations not
required by this Agreement.

The Parties acknowledge that Company's purchase of the Services under this
Agreement was optional and was not required by Company's purchase of any other
services from Provider.

For ease of reference, capitalized terms used in this Agreement are defined in
the Glossary attached hereto as APPENDIX A.

                       ARTICLE 1. RELATIONSHIP PROTOCOLS

1.1.  Contracting Parties. Company shall contract on behalf of and will be
      responsible for all obligations of the Company Group under this Agreement.
      Provider shall contract on behalf of and will be responsible for all
      obligations of Provider under this Agreement.

1.2.  Evolving Nature of Relationship.

      (a)   The Schedules to this Agreement will be updated by the Parties as
            set forth in this Agreement as necessary or appropriate during the
            Term to accurately reflect the evolution of the Services and
            components and elements of the Services as described therein and the
            development of the law applicable to the Services.

      (b)   Company and Provider agree that the Services may require adjustments
            to reflect the developing business and operations of the Company
            Group and Provider, that the relationship memorialized by this
            Agreement is dynamic in nature and will evolve as the operating and
            business environment of the Company Group changes and evolves, and
            that the scope of the Services to be provided by Provider to the
            Company Group during the Term and corresponding fees charged by
            Provider may be changed and modified with the written agreement of
            the Parties pursuant to the Change Control Procedures. Therefore,
            the Company/Provider Executive Steering Committee will periodically
            evaluate the business and operating strategies of each Party and
            recommend modifications to, and evolution of, the Services
            (including the Service Levels) to optimize such strategies and
            determine the reasonable effect that any modifications of the
            Services may have on the fees chargeable by

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            Provider under this Agreement, taking into account all relevant
            material facts and circumstances [***]*

1.3.  Inherent Services.

      (a)   The Parties acknowledge and agree that there are functions,
            responsibilities, activities and tasks not specifically described in
            this Agreement which are required for the proper performance and
            provision of the Services and are a necessary, customary or inherent
            part of, or a necessary sub-part included within, the Services.
            Subject to the terms of Section 1.3(c) below, such functions,
            responsibilities, activities and tasks shall be deemed to be implied
            and included within the scope of the Services to the same extent and
            in the same manner as if specifically described in this Agreement.

      (b)   The Parties acknowledge and agree that there are functions,
            responsibilities, activities and tasks not specifically described in
            this Agreement which are a customary or inherent part of, or a
            necessary sub-part included within, the responsibilities retained by
            Company and which shall not be transferred to Provider. Subject to
            the terms of Section 1.3(c) below, such functions, responsibilities,
            activities and tasks shall be deemed to be retained by Company to
            the same extent and in the same manner as if specifically described
            in this Agreement as being retained by Company.

      (c)   The Parties recognize that it may not be possible in all cases to
            determine clearly whether a given function, responsibility, activity
            or task should be performed by Provider as an inherent part of the
            Services or instead should be retained by Company as a
            responsibility that has not been transferred to Provider. The
            Parties agree to work together in good faith in such cases to
            appropriately assign responsibility for the performance of such
            function, responsibility, activity or task, including those
            described in the SERVICES SCHEDULE (SCHEDULE A).

1.4.  Changing Nature of Services. While the Parties will endeavor to update,
      modify and amend this Agreement and the Schedules as necessary or
      appropriate from time to time to reflect various adjustments in the
      arrangements contemplated by this Agreement, the Parties acknowledge that
      such adjustments may not always be documented with specificity. Therefore,
      the Parties agree to deal with each other in good faith to resolve all
      issues presented by each Party to the other and any disputes that may
      arise.

1.5.  Conflicts of Interests. Provider shall not use any of the Company
      telephony platform, Hardware or Company Software Assets to perform
      services for others (including Provider), without the prior written
      consent of Company. Provider shall not use any of the Company Support
      Services to perform services for others (including Provider), without the
      prior written consent of Company until such time as Provider and Company
      transition to a new delivery and fee model based on business process
      outputs for the delivery of Services as described in the CHARGES SCHEDULE
      (SCHEDULE C).

1.6.  [***]*

1.7.  [***]*

1.8   Additional Agreements. The parties have agreed to enter into the
      transactions contemplated in the ADDITIONAL AGREEMENTS SCHEDULE.

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                            ARTICLE 2. THE SERVICES

2.1.  Obligation to Provide Services. During the Term, Provider shall provide
      the Services to and perform the Services for the Company Group. The scope
      of Services is described in the SERVICES SCHEDULE (SCHEDULE A), the
      service levels are described in the SERVICE LEVEL SCHEDULE (SCHEDULE B),
      and the charges are described in the CHARGES SCHEDULE (SCHEDULE C).

2.2.  Affiliate Participation.

      (a)   [***]*

      (b)   If the Company Group divests or no longer controls a given Affiliate
            or other particular operations or assets that were receiving
            Services under this Agreement, at Company's request: (i) Provider
            shall continue to provide the Services to such former Company Group
            entity, operations or assets [***]* for a period of no more than
            [***]* following the closing date of the applicable transaction,
            (ii) the amount of Services provided to such former Company Group
            entity, operations or assets will be consolidated with the amount of
            Services provided to the Company for the purposes of calculating the
            Charges to be charged by Provider to the Company and such former
            Company Group entity from and after the closing date of such
            transaction for the period during which Provider provides the
            Services to the former Company Group entity at the direction of the
            Company and (iii) at either Party's option, the relevant parties
            will use commercially reasonable efforts to enter into a new
            contract and modification of this Agreement in order to effectuate
            the intent of this Section 2.2(b); provided that pending execution
            of such new contract and modification, the provision of Services
            [***]* therefor shall continue to be governed by this Agreement, and
            Company shall require any divested entity or successor entity that
            receives services under this Section 2.2(b) to agree to comply with
            the provisions of this Agreement.

      (c)   Provider shall perform any transition services required to
            transition any operation into or out of the Provider's Service
            delivery platform contemplated by this Section 2.2 as a New Service
            expressly subject to the provisions of Section 2.13 governing the
            delivery of New Services by Provider to Company. [***]*

2.3.  Third Party Participation. Third parties supporting the Company Group
      Business, such as Company contractors and subcontractors, shall be
      entitled to access and use Services, but only as necessary or appropriate
      for their delivery of services supporting the Company Group business.
      Company shall ensure that, at the request of Provider, each such
      third-party participant enters into a written agreement with Company that
      (i) limits the third party's disclosure and use of information that it
      obtains from Provider solely to the support of the Company Group, (ii)
      obligates such third party supplier to comply with Provider's general
      security policies applicable to the relevant Provider activities and (iii)
      at the request of Provider in appropriate cases, names Provider as a
      third-party beneficiary of such arrangement. The third parties or
      categories of such third parties are set forth in the THIRD PARTY
      PARTICIPATION SCHEDULE.

2.4.  Service Levels; Reporting

      (a)   Provider agrees that, from and after the Process Take-On Date, that
            its performance of the Services will conform to the requirements of
            the applicable Service Levels set forth in the SERVICE LEVELS
            SCHEDULE (SCHEDULE B) to this Agreement (as such schedule may be
            modified from time to time pursuant to 2.4(b) below). Provider will
            measure its performance of the Services relative to the Service
            Levels.

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      (b)   Company and Provider will, [***]*, review and consider commercially
            reasonable changes, modifications, deletions and replacements of and
            additions to the Service Levels and the Service Credits for the
            purposes of better and more timely reflecting, facilitating and
            supporting the continuing development, and evolving priorities of
            the Company Group and the Company Group Business. Any such changes
            will be implemented through the Change Control Procedures. The
            Service Levels shall not be changed, modified or adjusted downward
            or upward without the prior written agreement of the Parties. [***]*
            The Parties agree to cooperate and deal with each other in good
            faith to promptly resolve on a reasonable basis in consonance with
            the purposes of the review process, any differences between the
            Parties regarding appropriate changes to, modifications of,
            additions to, deletions of and replacements of the Service Levels
            and the Service Credits.

      (c)   Provider shall implement the necessary measurement and monitoring
            tools and procedures to measure and report Provider's performance of
            the Services against the Service Levels as such standards and levels
            may be developed, modified and changed during the Term and as the
            Services may evolve and be supplemented and enhanced during the
            Term. Such measurement and monitoring shall permit reporting at a
            reasonable level of detail sufficient to verify compliance with the
            Service Levels and application of any attendant Service Credits.
            Provider shall prepare and maintain detailed records regarding its
            compliance with the Service Levels and the determination and
            application of attendant Service Credits, and shall permit Company
            and its designees access to all such records for the purposes of
            performing verifying audits, planning and identifying possible
            process improvements. Upon request Provider shall provide Company
            with information and reasonable access to such tools and procedures,
            and the records relating thereto, for purposes of verification of
            the reported performance levels.

      (d)   Provider shall provide Company with the reports regarding its
            performance in accordance with the REPORTS SCHEDULE.

2.5.  [***]*

2.6.  [***]*

2.7.  Disaster Recovery Services. Provider will provide Disaster Recovery
      Services pertaining to the Services in accordance with the DISASTER
      RECOVERY SCHEDULE. Company shall provide reasonable assistance and
      cooperation to support Provider's efforts to deliver such Disaster
      Recovery Services. Company shall retain responsibility to perform its
      obligations in accordance with the DISASTER RECOVERY SCHEDULE.

2.8.  Audits. Provider will assist the Company Group in meeting the respective
      audit and regulatory requirements applicable to members of the Company
      Group as and to the extent described in this Section 2.8. Company shall
      have the right to conduct or permit to be conducted regulatory,
      operational, financial and internal audits. Provider will provide access
      to the facilities where Provider will perform the Services and Provider's
      data, information and records, (i) to enable the Company Group and its
      auditors and examiners to conduct appropriate audits and examinations of
      the Company Group's operations and Provider's operations relating to the
      performance of the Services, and (ii) to verify that Provider's charges
      and credits to Company are accurate and that the Services are being
      provided in accordance with this Agreement and the Service Levels. Except
      as otherwise required by regulatory auditors, Company shall provide at
      least [***]* notice to Provider of its need for such access and Provider
      shall then provide such access during reasonable hours. If any audit or
      examination reveals that Provider's invoices for the audited period are
      not correct (other than amounts in dispute pursuant to Section 8.3),
      Provider shall promptly reimburse Company for the amount of any
      overcharges, or Company shall promptly pay Provider for the

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      amount of any undercharges. Company shall choose the auditors that will
      conduct the audits provided for in this Section 2.8; provided, however,
      that except as otherwise required by regulatory auditors, no personnel
      conducting such audits shall then currently be engaged in any other
      assignment that is in direct and material competition with Provider's
      principal business. In addition, Company agrees to exercise commercially
      reasonable efforts to reasonably accommodate any reasonable, good faith
      concerns identified by Provider to Company's selection of an auditing firm
      that is a competitor of or has a business unit that is competitive with
      Provider. No person or entity may serve as an auditor unless and until
      that prospective auditor has entered into a written agreement with Company
      that includes those requirements set forth on the AUDITOR CONFIDENTIALITY
      SCHEDULE. Provider shall have the right to conduct such orientation and
      closing conferences with non-regulatory auditors as are reasonable and
      customary in the management of such audit activities. Company will pay the
      costs associated with conducting any audits (which shall include fees and
      expenses paid to Company's third party auditors and examiners), except
      that each Party will pay its internal costs relating to audits and
      Provider shall pay the reasonable costs of any external auditors engaged
      by Company to perform financial audit of the Charges invoiced by Provider
      under this Agreement if such audit reveals that the audited Charges exceed
      the correct Charges by [***]*

2.9.  Change of Requirements.

      (a)   During the Term, if either Party determines that Company requires a
            sustained substantial increase or reduction in the level of Services
            or any element of the Services needed by the Company Group Business
            such changes shall be governed by applicable provisions of Section
            2.2(b) and this Section 2.9.

      (b)   Each Party will notify the other of its determination that a
            sustained substantial increase or reduction of the level of the
            Services or any element of the Services will be required. Provider
            will promptly prepare and deliver to Company a written plan setting
            forth the nature, composition and extent of the changes to the
            Services, the adjustments in the Charges and Service Levels, as
            applicable, for the Services implied by such events and the Provider
            resource disposition and asset reallocation schedule that will need
            to be implemented in order to accommodate the increase or decrease
            of resource requirements for such changes in an equitable and
            cost-effective manner without disruption to the Company Group's
            continuing operations. The plan, including the impact on the Charges
            that will result therefrom will be promptly reported to Company for
            review and acceptance. Upon acceptance by Company, Provider will
            make the applicable adjustments to the Charges and components
            thereof in accordance with the plan to reflect the foregoing and
            distribute and execute amended Schedules as appropriate.

2.10. Regulatory Compliance.

      (a)   As part of, and to the extent relevant to, the Services, Provider
            will identify, interpret and comply in all material respects (i)
            with the laws and regulations applicable to payroll matters,
            including without limitation wage and hour laws, tax withholding and
            garnishments, and (ii) with the laws and regulations applicable as
            relevant to Provider's business operations under this Agreement. In
            addition and as part of the Services, Provider shall identify the
            impact of changes in the foregoing laws and regulations on its
            ability to deliver the Services. Provider shall notify Company of
            such changes and shall work with Company to identify the impact of
            such changes on how Company uses the Services. Provider does not
            otherwise have, and Company retains, responsibility for identifying
            or interpreting (i) laws and regulations applicable as relevant to
            Company's business operations under this Agreement, including
            without limitation, employment benefits, employee rights and
            discrimination laws, other human resources-related Laws, and all
            fiduciary obligations

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      arising under such laws, and (ii) laws and regulations applicable to
      Company in its capacity as a global forest products, paper and packaging
      company.

(b)   Without limiting the generality of the preceding sentence, the Parties
      specifically agree that they may need to make appropriate adjustments to
      the arrangements contemplated by this Agreement to address the impact of
      the laws, rules and regulations applicable to such arrangements. Further,
      the Parties may need to amend this Agreement within a commercially
      reasonable time prior to the effective date of any HIPAA privacy
      regulations, as may be necessary for the Services and this Agreement to
      comply with such regulations. Company's reasonable good faith
      interpretation of any law, rule or regulation shall be conclusive in
      determining whether any such change is necessary. Any change to the
      Services required as a result of any change in any Law or in the
      interpretation thereof shall be implemented by Provider in accordance with
      Company's written instructions, and any changes to the Charges as may be
      appropriate as a result of such changes in Services will be given effect
      through the Change Control Procedures.

(c)   If either Party receives an official charge of non-compliance from a
      governmental entity with respect to the performance of its obligations
      under this Agreement, such Party will promptly notify the other Party of
      such charge in writing.

(d)   To the extent that Company is obligated to comply with particular laws and
      regulations associated with benefits plans, payroll and other activities,
      Provider shall provide as part of the Services assistance and cooperation
      (including without limitation, documentation) as requested by Company in
      writing to permit Company to comply with such laws and regulations;
      provided that any change or addition to the Services and Charges required
      by such cooperation, assistance and documentation shall be given effect
      through the Change Control Procedures.

(e)   Company may submit to Provider findings and recommendations regarding
      compliance by Provider with applicable laws and regulations, which
      Provider will analyze and consider in good faith. Provider shall promptly
      provide to Company Provider's evaluation of such findings and
      recommendations and, if applicable, Provider's plan for addressing such
      findings and recommendations. The Parties shall promptly make any
      resulting modifications to the Services and Charges as are reasonably
      necessary to give effect to such changes through the Change Control
      Procedures.

(f)   Provider shall be responsible for any fines and penalties imposed on
      Provider or Company arising from any noncompliance with the laws and
      regulations for which Provider is responsible under Subsection (a) above
      by Provider, its agents, subcontractors or third party product or service
      providers, except to the extent that such noncompliance was caused by
      Company, Company Group or their respective affiliates, agents or
      sub-contractors. Company shall be responsible for any fines and penalties
      imposed on Provider and Company arising from any noncompliance with the
      laws and regulations for which Company retains responsibility under
      Subsection (a) above by Company or its agents, subcontractors or third
      party product or service providers, except to the extent that such
      noncompliance was caused by Provider, its affiliates, agents or
      subcontractors.

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2.11. Use of Subcontractors.

      (a)   Provider may not subcontract any material portion of the Services
            covered by the Baseline Charges (individually or in the aggregate)
            without Company's prior written consent. Company agrees that when
            informed by Provider of Provider's desire to subcontract with
            respect to the performance of the Services, Company shall enter into
            good faith discussion with Provider to assess the appropriateness of
            Provider's desired subcontracting arrangement.

      (b)   Provider may use temporary staffing to perform information
            technology services, temporary staffing included in the Baseline and
            temporary staffing that perform the services of Affected Employees
            who are no longer employed by Provider without limitation on the
            number of such personnel. Provider may utilize other temporary
            staffing to provide other Services, [***]*

      (c)   No subcontracting, whether or not permitted, shall relieve Provider
            of its performance obligations under this Agreement. Provider shall
            remain primarily liable and obligated to Company for the timely and
            proper performance of all of its obligations hereunder even if such
            obligations are delegated to third party subcontractors, and for the
            proper and timely performance and actions of any person or entity to
            which it delegates or subcontracts any such obligation.

2.12. Special Projects. Provider will perform the special projects set forth in
      the IN-FLIGHT PROJECTS SCHEDULE in accordance with its terms and with the
      terms of this Agreement. From time to time during the Term, Provider will
      perform additional special projects for Company at Company's request.
      Except as otherwise agreed, charges for the performance of project work
      will be determined in accordance with the CHARGES SCHEDULE (SCHEDULE C).
      Any special projects will be completed on time and in accordance with the
      specifications for each such project.

2.13. New Services.

      (a)   If Company requests Provider to perform an additional function,
            responsibility or task that is not described on the SERVICES
            SCHEDULE (SCHEDULE A), such additional function, responsibility or
            task will be considered a "New Service". If Company's request for a
            New Service includes a request for Provider to correspondingly
            reduce or eliminate one or more existing elements of the Services
            then being provided hereunder, Provider shall determine the
            resources and expenses related to the element or elements of the
            Services being reduced or eliminated and those required for the
            services being added.

      (b)   Promptly after receiving each request for New Services from Company,
            Provider will provide a written quote to Company setting forth the
            net increase or decrease in the Charges and/or other charging
            methodologies, and if applicable, increases and decreases in
            resource units and additional resource baselines, if any, that will
            be attributable to such New Services, and will concurrently deliver
            to Company as a part of such quote a detailed description of and
            proposal for the New Services together with a report regarding the
            ramifications and impacts of such New Services on the Services. All
            changes in the Charges and other charging methodologies will be
            based upon the required proportional increase in personnel, system
            and other resources applicable to the New Services relative to the
            Charges and other existing charging methodologies. Upon receipt of
            such quote and other documentation, Company may then elect to have
            Provider perform the New Services, and the Charges and, if
            applicable, other charging methodologies and resource baselines will
            be established and/or adjusted to reflect such New Services.
            Notwithstanding the foregoing, nothing herein shall be deemed to
            obligate Company to obtain New Services from Provider.

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      (c)   The Parties agree that changes during the Term in functions,
            responsibilities and tasks that are within the scope of the Services
            will not be deemed to be New Services, if such functions,
            responsibilities and tasks evolved or were supplemented and enhanced
            during the Term by Provider in its sole discretion or pursuant to
            the provisions of this Agreement, unless such function,
            responsibility or task was approved by Company pursuant to the
            Change Control Procedures.

      (d)   Without limiting the provisions of Section 1.6 or Section 2.2, if
            the Parties cannot agree that a function, responsibility or task
            falls within the definition of a New Service, and Company either
            demonstrates that such function, responsibility or task is required
            by law or regulation or determines in good faith that the function,
            responsibility or task is critical to Company's business, then
            Provider shall nevertheless perform the disputed function,
            responsibility or task if requested by Company. The determination of
            whether any function, responsibility or task is a New Service to be
            paid by Company will be determined pursuant to the Dispute
            Resolution Process.

      (e)   Changes to this Agreement and to the Schedules to reflect New
            Services will be effected and documented through Change Control
            Procedures.

2.14. Required Consents. With respect to Third Party Agreements, each Party will
      be responsible for (i) obtaining all consents or rights to use, and (ii)
      paying the costs, if any, of obtaining the consents or rights to use, in
      accordance with the SOFTWARE RIGHTS SCHEDULE (SCHEDULE F) and as indicated
      on the CHARGES SCHEDULE (SCHEDULE C). All such consents or rights to use
      and transfers shall be obtained or made within [***]* after the Effective
      Date, but in no event later than the Process Take-On Date or the date
      required under the Transition Plan, unless otherwise agreed by the Parties
      in writing. If any consent or right to use is not obtained or a required
      transfer is not made, the Parties shall cooperate with each other in
      achieving a reasonable alternative arrangement for each Party to continue
      to process its work with minimum interference to its business operations
      unless and until such consents or rights to use are obtained or required
      transfers are made. The Parties shall allocate the cost of achieving such
      reasonable alternative arrangement based on which Party is responsible for
      obtaining the relevant consent or right to use or making the relevant
      transfer and on such other facts and circumstances as may be appropriate.

2.15. Responsibility for Data Accuracy. Company shall use reasonable efforts to
      detect, isolate and correct all errors in the data created, collected,
      disseminated, forwarded, processed or stored by Company and provided to
      Provider in connection with the Services. As part of the Services,
      Provider shall use reasonable efforts to detect, isolate and correct all
      errors in the data created, collected, disseminated, forwarded, processed
      or stored by Provider in connection with the Services. Company shall
      reimburse Provider the cost of Provider's correction of errors that are
      present in Company-provided data, provided the errors are present in such
      data at the time Company delivers or makes it available to Provider.

                         ARTICLE 3. PLATFORM COMPONENTS

3.1.  Component Rights.

      (a)   The Parties shall identify on the SOFTWARE RIGHTS SCHEDULE (SCHEDULE
            F) all Software required to provide the Services as of the
            commencement date, and shall categorize the Software as follows: (i)
            Software licensed by the Company Group which will be made available
            for use by Provider in connection with its delivery of the Services
            under Provider's appointment as Company's representative pursuant to
            Section 3.3; (ii) third party Software

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            licensed by the Company Group for which a right to use shall be
            obtained permitting Provider to access the Software in connection
            with its delivery of the Services, designating whether Company or
            Provider shall have responsibility for obtaining such right to use;
            (iii) proprietary Company-owned Software for use by Provider in
            connection with its delivery of the Services; (iv) proprietary
            Provider-owned Software which will be made available for use by
            Company in connection with its receipt of the Services; and (v)
            Software which is licensed by Provider from a third party which will
            be made available for use by Company in connection with its receipt
            of the Services.

      (b)   The Parties shall identify on the HARDWARE RIGHTS SCHEDULE (SCHEDULE
            M) all Hardware required to provide the Services as of the
            commencement date, and shall categorize such Hardware as follows:
            (i) Company Group owned Hardware which shall be transferred to
            Provider as part of the purchased assets; (ii) Company Group owned
            Hardware which Company will make available for use by Provider in
            connection with its delivery of the Services; (iii) Hardware which
            is leased by the Company Group from a third party and which Provider
            will use under Provider's appointment as Company's representative
            pursuant to Section 3.3; and (iv) leased Hardware for which a
            consent shall be obtained permitting Provider to use the Hardware in
            connection with its delivery of the Services, designating whether
            Company or Provider shall have responsibility for obtaining such
            consent.

      (c)   The Parties shall identify on the SOFTWARE RIGHTS SCHEDULE (SCHEDULE
            F) or the HARDWARE RIGHTS SCHEDULE (SCHEDULE M) all Third Party
            Agreements required to provide the Services as of the Effective
            Date, and shall categorize such Third Party Agreements as either
            Right to Use Agreements, Retained Agreements, Company Proprietary
            Agreements, Provider Proprietary Agreements, or Provider Third Party
            Agreements.

      (d)   Provider will provide to Company within a reasonable period after
            Company's request a current list of the applications Software
            required to provide the Services.

3.2.  Software and Hardware Migration.

      (a)   Provider and Company contemplate that certain of the information
            technology platform operated by Company and used exclusively to
            support the Employee Service Center shall be migrated from the
            Company to Provider on or before the Migration Date. The Parties
            therefore agree that on or before the Migration Date, Provider will
            discontinue its use of the Company Hardware located at the Employee
            Service Center and the Company Software residing on such Hardware.
            Provider will be responsible for determining the information
            technology migration plan and procedures with any changes to the
            Services and Charges to be handled through the Change Control
            Procedures. Except as otherwise agreed pursuant to the Change
            Control Procedures, Provider will be responsible for obtaining the
            necessary Hardware and Software at the Employee Service Center to
            continue to perform the Services following the Migration Date and
            for all costs associated with obtaining such Hardware and Software.

      (b)   Regarding the Company Hardware and Software, other than the SAP
            software, that Provider has the right to use or access in connection
            with the Services but which is not located at the Employee Service
            Center, the Parties agree to use the Change Control Procedures at
            any time and from time to time to determine any changes to
            Provider's right to use or access to such Hardware and Software and
            the impact of such changes on the Charges. Regarding the SAP
            software, the Parties agree that Provider will not be responsible
            for obtaining a SAP license to perform the Services for Company.

3.3.  Appointment as Company Representative.

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      (a)   Company authorizes Provider to act as the representative of the
            Company and the members of the Company Group, and Provider accepts
            such authorization, for the limited purposes of accessing the
            applicable Software and Hardware under the Retained Agreements.

      (b)   Provider will perform its obligations and responsibilities as
            representative of Company and Company Group under the Right to Use
            Agreements and the Retained Agreements subject to the provisions of
            this Agreement, the SOFTWARE RIGHTS SCHEDULE (SCHEDULE F), the
            HARDWARE RIGHTS SCHEDULE (SCHEDULE M) and the SERVICES SCHEDULE
            (SCHEDULE A). Upon Company's request, Provider will provide to
            Company all information and documentation related to its activities
            as the Company Group's representative under the Retained Agreements.

      (c)   Company may terminate or provide additional restrictions on
            Provider's appointment as representative of Company and Company
            Group with respect to the Retained Agreements at any time in
            Company's discretion upon reasonable notice to Provider. The impact
            on the Services of such termination or additional restrictions will
            be addressed through the Change Control Procedures.

3.4.  License, Lease and Maintenance Charges. In addition to the responsibility
      for the costs of Required Consents provided for in Section 2.14, each
      Party will be financially responsible for license, leasing, maintenance,
      support and other such costs of Software and Hardware provided by Company
      or used or accessed by Provider in connection with the arrangements
      contemplated by this Agreement as and to the extent provided for in the
      CHARGES SCHEDULE (SCHEDULE C). Provider will be financially responsible
      for all other such costs. The Charges will include all license, lease,
      maintenance, support and other costs for Provider Software and Hardware
      and all other such costs for which Provider is financially responsible.

3.5.  Viruses. Each Party will take commercially reasonable measures to ensure
      that no Virus or similar items are introduced into the Software system and
      the operating environments used to provide the Services. If a Virus is
      found to have been introduced into the Software systems and the operating
      environments used in connection with the Services, each Party shall use
      commercially reasonable efforts and diligently work to eliminate the
      effects of the Virus; provided, however, both Parties shall take immediate
      action if required due to the nature or severity of the Virus'
      proliferation. If a Virus is introduced into the Software system or the
      operating environments used to provide the Services from a desktop
      computer or other source controlled by Provider, then Provider will be
      financially responsible for the costs associated with eliminating the
      effects of the Virus. If a Virus is introduced into the Software system or
      the operating environment to provide the Services from other than an
      Provider controlled source, then Provider shall not be financially
      responsible for the costs associated with eliminating the effects of the
      Virus. Each Party shall be responsible for the reasonable costs incurred
      by the other Party resulting from the responsible Party's failure to
      fulfill its obligations under this Section 3.5.

                          ARTICLE 4. CHANGE MANAGEMENT

4.1.  Change Control Procedures. Except as otherwise set forth in this
      Agreement, the Account Governance Schedule or the Technology Process
      Governance Schedule, all changes and approval procedures for performance
      under this Agreement shall be made in accordance with the CHANGE CONTROL
      PROCEDURES SCHEDULE.

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                      ARTICLE 5. TRANSITION AND RESOURCES

5.1.  Transition Plan. The Transition Plan as set forth on the TRANSITION PLAN
      SCHEDULE (SCHEDULE G) will govern Provider's performance of the Services
      and the Company's performance of various transition tasks during the
      period from the Effective Date until such time as the Services are
      completely migrated/converted to Provider, including without limitation
      the satisfaction or written waiver of the conditions set forth on
      ADDITIONAL AGREEMENTS SCHEDULE (the "Process Take-On Date"). Each Party
      agrees to use its commercially reasonable efforts to satisfy the
      conditions set forth on the ADDITIONAL AGREEMENTS SCHEDULE. The Parties'
      expectation is that the Process Take-On Date will be no later than [***]*
      After the Process Take-On Date and until expiration or termination of this
      Agreement, Provider will perform the Services in accordance with the other
      provisions of this Agreement. The charges for the transition services to
      be provided by Provider are included in the Charges for the Services and
      there shall be no additional charge to the Company for transition services
      unless mutually agreed pursuant to the Change Control Procedures.

5.2.  Affected Employees.

      (a)   Provider will offer employment to each of the individuals listed on
            the AFFECTED EMPLOYEES SCHEDULE (SCHEDULE D). The offers to be made
            to each of the Affected Employees by Provider will be as described
            on the AFFECTED EMPLOYEE ARRANGEMENTS SCHEDULE (SCHEDULE J).
            Additional details regarding the treatment of Affected Employees are
            included in the AFFECTED EMPLOYEE ARRANGEMENTS SCHEDULE (SCHEDULE
            J).

      (b)   All costs and expenses incurred by Provider in connection with the
            offer to employ and the employment of the Affected Employees shall
            be the responsibility of Provider. Provider will promptly reimburse
            Company for the amount of salary and benefit costs incurred by
            Company, if any, with respect to the Affected Employees after the
            Process Take-On Date for the period until they receive offers and
            they reject such offers, such offers expire or the Affected
            Employees become Provider employees if and only if Provider requests
            that Company retains such employees beyond the Process Take-On Date.

5.3.  Resources.

      (a)   Except as otherwise provided in Sections 2.14 and 3.4, each Party
            will have the responsibility and obligation to provide, administer,
            manage, support, maintain and pay for all resources (including,
            without limitation, personnel, Hardware, Software, facilities,
            services and other items, however described) necessary or
            appropriate for the performance of such Party's obligations under
            this Agreement.

      (b)   Beginning on the Effective Date and for the duration of the Term,
            each Party will timely provide trained and qualified personnel as
            necessary or appropriate to facilitate and ensure the timely and
            proper performance of such Party's obligations under this Agreement.

                          ARTICLE 6. SERVICE STAFFING

6.1.  Relationship Managers. Each Party's initial Relationship Manager shall be
      the person so designated in the ACCOUNT GOVERNANCE SCHEDULE. A Party's
      Relationship Manager shall have the authority to act for the appointing
      Party and its subcontractors in connection with all aspects of this
      Agreement, and shall be the person to whom all of the non-appointing
      Party's communications to the appointing Party may be addressed. The
      process the Parties will follow for the subsequent

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      assignment of Relationship Managers is specified in Section 6.3 and in the
      ACCOUNT GOVERNANCE SCHEDULE.

6.2.  Key Personnel. Each of the Provider personnel engaged in key positions
      (including but not limited to the Relationship Manager) will devote
      substantially all of his or her full time and effort to the performance of
      the Services and the Company platform shared by the Parties. Company has
      the right to approve Provider personnel in key positions, in advance and
      in writing. Provider's personnel filling key positions as of the Effective
      Date are listed in the KEY PERSONNEL SCHEDULE.

6.3.  Provider's Replacement of Personnel. Provider will give Company at least
      [***]* advance notice of a change in the person appointed as the Provider
      Relationship Manager or the person appointed as the Provider Center
      Manager (together, the "Provider Managers"), unless the Provider Manager
      resigns or is unable to work due to his or her death, disability or is
      removed at Company's request. In any such event, Provider will provide
      Company with notice of such event as promptly as reasonably possible.
      Company shall promptly provide Provider with notice of any concerns that
      it may have with the proposed change and Provider and Company shall
      discuss such concerns. Company shall have the right after such discussion
      to require that its concerns be resolved on a mutually agreed basis.
      Provider shall not reassign or replace any person assigned as the Provider
      Relationship Manager or the Provider Center Manager during the first year
      of his or her assignment to the Company service team, nor shall Provider
      assign more than [***]* different individuals to either such position
      during the Term, unless Company consents to such reassignment or
      replacement, or the Provider employee voluntarily resigns from Provider,
      is unable to work due to his or her death or disability or in consultation
      with Company, is removed from the Company account for non-performance, or
      takes a leave of absence that Provider is required to provide by law or
      that is consistent with the terms of an ordinary and commercially
      reasonable benefits package applicable to that individual. If a Provider
      Relationship Manager resigns or is replaced and the Provider Center
      Manager moves into the position of Provider Relationship Manager (or vice
      versa), then such change will only be counted as a change in the Provider
      Relationship Manager, but not also as a change in the Provider Center
      Manager.

6.4.  Retention of Experienced Resources. If Company reasonably believes that a
      continuing deficiency in the performance of the Services is attributable
      in whole or in part to Provider's reassignment, movement, or other changes
      in the personnel assigned by Provider to the performance and delivery of
      the Services and/or to the Provider subcontractors assigned to the Company
      service team, Company will notify Provider of such belief and the basis
      for such belief. Upon receipt of such notice from Company, Provider (i)
      will promptly provide to Company a report setting forth Provider's
      position regarding the matters raised by Company in its notice; (ii) will
      meet with Company to discuss the matters raised by Company in its notice
      and Provider's positions with regard to such matters; and (iii) will
      promptly and diligently take commercially reasonable action to address any
      such Provider personnel assignment practices and/or processes identified
      by Company as adversely impacting the performance and delivery of the
      Services by Provider.

6.5.  Efficient Use of Resources. Provider shall take commercially reasonable
      actions (i) to efficiently administer, manage, operate and use the
      resources employed by Provider to provide and perform the Services that
      are chargeable to Company under this Agreement, and (ii) to diligently and
      continuously improve the performance and delivery of the Services by
      Provider and the elements of the policies, processes, procedures and
      system that are used by Provider to perform and deliver the Services,
      including, without limitation, re-engineering, tuning or optimizing the
      processes, procedures and systems used to perform, deliver and track the
      Services.

6.6.  Non-solicitation of Employees. [***]* neither Party shall knowingly
      solicit any employee of the other Party or their Affiliates without the
      other Party's written consent, except as permitted upon termination under
      Section 13.4 or under Section 5.2. Company or Provider employee's
      responses

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      to or employment resulting from general public solicitations will be
      exempted from this provision. Notwithstanding each Party's right to
      solicit the employment of employees of the other Party or its Affiliates
      through general public solicitations as provided above in this Section
      6.6, neither Party will [***]* hire, employ or engage as a consultant or
      in any other position, however described, any person who is directly
      involved in the delivery or receipt of the Services while such person is
      engaged in any such capacity by the other Party [***]* without the prior
      written consent of such other Party.

                      ARTICLE 7. CHARGES AND DISBURSEMENTS

7.1.  Charges. In consideration of Provider's performance of the Services,
      Company will pay Provider the Charges in accordance with the CHARGES
      SCHEDULE (SCHEDULE C). The Charges shall be the only amounts chargeable to
      Company for the Services and other resources to be provided to Company
      under this Agreement, except as otherwise provided for in Section 7.2.

7.2.  Taxes.

      (a)   [***]*

      (b)   Each Party will provide notice to the other Party before remitting
            sales and use Taxes in connection with any and all transactions
            contemplated by this Agreement. The Parties will cooperate in good
            faith to develop consistent sales and use Tax positions acceptable
            to both Parties. Each Party shall then provide notice of all sales
            and use Taxes voluntarily paid by that Party in connection with any
            and all transactions contemplated by this Agreement. Either Party
            may at its sole discretion elect to seek a refund of Taxes so paid,
            either directly or through the other Party to this Agreement if
            required by statutory refund procedures. When one Party elects to
            seek a refund of any sales and use Tax, the other Party may choose
            to participate in the litigation to obtain the refund (the term
            litigation being used in sections (b) and (c) broadly to encompass
            all efforts to seek administrative remedies and litigation in any
            appropriate trial or appellate forum), by bearing its pro-rata share
            of all attorneys fees and other expenses related thereto, based on
            the Parties share of the potential recovery as determined in
            subsection(a). In that event, all amounts recovered from said
            efforts to obtain a refund shall be allocated to the calendar year
            in which the Taxes were paid and distributed to the Parties
            according to the amounts of Taxes paid by each in that calendar year
            pursuant to subsection (a). A Party may elect to not participate in
            an effort to obtain a refund and not contribute to the cost of said
            effort. In that event, the Party proceeding in with a refund claim
            (whether directly, or through the other Party to this Agreement)
            shall receive all amounts recovered, with the non-litigating Party
            waiving all rights thereto. Each party will seek any refund at the
            behest of the other Party to this Agreement. When pursuing a claim
            for refund and related litigation, each Party will make a good faith
            effort to reach an agreement with the other Party regarding
            selection of counsel and litigation strategies.

      (c)   Either Party will notify the other party to this Agreement in the
            event it receives an assessment of sales and use Taxes arising out
            of any transaction contemplated by this Agreement. Either Party may,
            in the event it receives an assessment, pursue litigation to have
            the assessment set aside or, in the event the other Party receives
            an assessment, demand at its discretion that the other Party pursue
            litigation to have the assessment set aside. Attorneys' fees and
            other expenses associated with challenging any assessment shall be
            borne by the Parties on a pro rata basis reflecting each Party's
            share of the assessed tax liability as determined in paragraph (a).
            Any statutory attorneys fees or other expenses recovered as part of
            a challenge to an assessment shall be divided by the Parties

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            on that same pro-rata basis. In the event the Parties agree to pay
            an assessment, the assessed Taxes paid shall be allocated to the
            calendar year for which the Taxes were assessed and paid by the
            Parties according to their respective liabilities as set out in
            paragraph(a). When challenging an assessment and in related
            litigation, each Party will make a good faith effort to reach an
            agreement with the other Party regarding selection of counsel and
            litigation strategies.

      (d)   The Parties agree to reasonably cooperate with each other to enable
            each to more accurately determine each other's tax and to minimize
            such liability to the extent legally possible. Provider's invoices
            shall separately state the amounts of any Taxes Provider is
            collecting from Company. In the case of Company, such cooperation
            shall include providing Provider any applicable exemption or resale
            certificates, and information regarding out-of-province or
            out-of-country sales and use of equipment. In the case of Provider,
            such cooperation shall include providing Company, at the reasonable
            and written request of Company, with applicable information
            regarding delivery or use of materials, services, or sales, and
            taking reasonable additional steps to minimize Taxes, examples of
            which include providing Company with thorough invoices and/or
            additional billing information that may be reasonably requested in
            order to determine the taxability of specific goods and services
            provided under this Agreement.

7.3.  Service Credits. Any Service Credits shall be applied against the Charges
      as described in the CHARGES SCHEDULE (SCHEDULE C).

7.4.  Benchmarking. Company and Provider shall engage in the Benchmark Process
      provided for in the BENCHMARKING SCHEDULE. The Parties shall cooperate in
      good faith to jointly select one or more suitable benchmarkers, [***]*
      Provider shall not be specifically bound by the results of the
      Benchmarking Process, but Provider agrees that it shall give due
      consideration to such results in responding to reasonable requests
      received from Company for adjustments in the arrangements contemplated by
      this Agreement.

                        ARTICLE 8. INVOICING AND PAYMENT

8.1.  Invoicing. Provider will invoice Company for the Charges in accordance
      with the invoicing procedures set forth on the CHARGES SCHEDULE (SCHEDULE
      C).

8.2.  Invoice Payment. Company will pay each invoice by wire funds transfer or
      other electronic means to an account specified by Provider in accordance
      with the payment terms set forth in the CHARGES SCHEDULE (SCHEDULE C).

8.3.  Disputed Charges/Credits. In the event Company disputes the accuracy or
      applicability of a charge or credit or other financial arrangement
      described in this Agreement, Company shall notify Provider of such dispute
      as soon as practicable after the alleged discrepancy has been discovered.
      Notwithstanding any such dispute, Company shall timely pay all amounts for
      Baseline Charges, subject to correction for manifest error. Any payment of
      disputed charges remitted by Company shall be deemed to be made with a
      reservation of rights by Company. If Company disputes in good faith any
      invoiced amounts for charges other than for Baseline Charges, Company may
      withhold payment of particular charges that Company disputes provided that
      Company delivers to Provider concurrently with the withholding of the
      disputed charges a reasonably detailed written explanation of the basis of
      the dispute. All undisputed accrued and payable amounts will be paid by
      Company in accordance with the timeframes set forth in this Agreement.

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8.4.  Setoff Rights. Any fees charged by Provider under this Agreement may be
      offset by the amount of [***]* costs paid by Company on behalf of Provider
      in accordance with this Agreement, or any other damages incurred by
      Company and finally awarded by a court of competent jurisdiction, or other
      amounts owed and past due to Company by Provider in accordance with this
      Agreement. Company shall provide at the time of such setoff a detailed
      written explanation of, and backup information related to, such setoff
      amount.

                          ARTICLE 9. TECHNOLOGY RIGHTS

9.1.  Pre-Existing Property. Each Party will retain ownership of Pre-Existing
      Property that it provides for the performance of the Services.

9.2.  Development Activity. The Parties acknowledge and agree that the Services
      provided by Provider under this Agreement do not include the transfer to
      Company of any customized or packaged computer software or any services
      that are part of the transfer to Company of any customized or packaged
      computer software.

9.3.  Company License. [***]* Company will provide to Provider copies of such
      Code in object code form only and other Materials to the extent reasonably
      necessary to permit Provider to exercise its rights under this Article 9.
      Nothing in this Section shall prevent Provider from providing the
      cooperation to Company's third party suppliers in accordance with Section
      1.6 of this Agreement or from providing the access and use of the Services
      to third parties supporting the Company in accordance with Section 2.3 of
      this Agreement.

9.4.  No Other Licenses. Except as set forth in this Article 9 and in Section
      13.4, with respect to licenses and rights granted upon a termination or
      expiration of this Agreement, no other licenses or rights (including
      without limitation licenses or rights under patents) are granted under
      this Agreement.

9.5.  Assignments. To the extent that by operation of law, any of the Materials
      may not be owned by a Party to which ownership has been allocated under
      this Article 9, each Party agrees to promptly assign, or cause to be
      assigned, and take such actions and execute and deliver such documents as
      shall be necessary or appropriate to effect such assignment (including,
      without limitation, the intellectual property rights directly appurtenant
      to such Materials) without further consideration.

9.6.  Other Agreements. The assignment of ownership rights and the grant of
      certain license rights by Company to Provider provided for in this Article
      9 shall be expressly subject to the terms of any Software or Hardware
      agreements that may limit Company's ability to make such an assignment or
      grant to Provider, such as, for example, the terms of any license
      agreement included in the SOFTWARE RIGHTS SCHEDULE (SCHEDULE F) or
      HARDWARE RIGHTS SCHEDULE (SCHEDULE M) that may reserve some or all of such
      rights to the licensor under such license agreement. Following the
      Effective Date, Company will use commercially reasonable efforts to
      identify any such restrictions, secure any waiver of any confidentiality
      or similar provisions necessary to notify Provider of such restrictions,
      and provide Provider with descriptions or abstracts of such provisions,
      subject to the receipt of any such waivers necessary to make such
      disclosures.

                          ARTICLE 10. CONFIDENTIALITY

10.1. Covenants. Company and Provider will each refrain from disclosing, will
      hold as confidential and will use the same level of care to prevent
      disclosing to third parties, the Proprietary Information of the other
      Party as it employs to avoid disclosure, publication or dissemination of
      its own information of a similar nature but in no event less than a
      reasonable standard of care.

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      Notwithstanding the foregoing, the Parties may disclose Proprietary
      Information in the case of Company, to members of the Company Group, to
      auditors in accordance with Section 2.8, to third parties permitted to
      access the Services under Section 2.3 and in the case of both Parties, the
      authorized contractors and subcontractors involved in providing, accessing
      and using the Services under this Agreement where: (i) such disclosure is
      necessary to further the purposes of this Agreement; (ii) such receiving
      parties agree in writing to observe the confidentiality and restricted use
      and disclosure covenants and standards of care set forth in this Article
      10 and under which the disclosing Party is a third party beneficiary for
      all purposes; and (iii) the receiving Party making the disclosure assumes
      full responsibility for the acts or omissions of such other receiving
      parties.

      Neither Company nor Provider shall use the Proprietary Information of the
      other Party except in the case of Provider and its subcontractors, in
      connection with the performance of the Services and as otherwise
      specifically permitted in this Agreement, and in the case of Company, its
      contractors, other members of the Company Group and other permitted
      recipients of Provider's Proprietary Information, as specifically
      permitted in this Agreement and in connection with the use of the
      Services. Neither Provider nor Company will acquire any right in or assert
      any lien against the other Party's Proprietary Information except as
      contemplated by this Agreement; or refuse to promptly return, provide a
      copy of or destroy such Proprietary Information upon the request of the
      disclosing Party.

10.2. Exclusions. Notwithstanding the foregoing, this Article 10 will not apply
      to any information which Provider or Company can demonstrate: (a) at the
      time of disclosure to it, was in the public domain; (b) after disclosure
      to it, was published or otherwise part of the public domain through no
      fault of the receiving Party; (c) without a breach of duty owed to the
      disclosing Party, was in the possession of the receiving Party at the time
      of disclosure to it; (d) was received after disclosure to it from a third
      party who had a lawful right to and, without a breach of duty owed to the
      disclosing Party, did disclose such information to it; or (e) was
      independently developed by the receiving Party without reference to
      Proprietary Information of the disclosing Party. Further, either Party may
      disclose the other Party's Proprietary Information to the extent required
      by law or order of a court or governmental agency. However, the recipient
      of such Proprietary Information must give the other Party prompt notice
      and make a reasonable effort to obtain a protective order or otherwise
      protect the confidentiality of such information, all at the disclosing
      Party's cost and expense.

10.3. Limitations. The covenants of confidentiality set forth herein (a) will
      apply after the Effective Date to any Proprietary Information disclosed to
      the receiving Party before and after the Effective Date and [***]*

10.4. Residual Rights. Subject to any agreement between Company and its
      personnel, contractors or subcontractors, or between Provider and its
      personnel, contractors, or subcontractors, and notwithstanding any
      provision of this Agreement or its Schedules to the contrary, Company,
      Provider and their respective personnel, contractors and subcontractors
      shall be free to use and employ their respective general skills, know-how
      and expertise, and to use, disclose and employ any generalized ideas,
      concepts, know-how, methods, techniques or skills gained or learned during
      the course of any assignment, so long as they acquire and apply such
      information without disclosure of any confidential or proprietary
      information of the other Party and without any unauthorized use or
      disclosure of the Code or Materials owned by or under license from the
      other Party.

                              ARTICLE 11. SECURITY

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11.1. Data Ownership and Privacy. All Company Information is the exclusive
      property of Company. The furnishing of or access to such Company
      Information by Provider and/or its subcontractors will not grant to
      Provider and/or its subcontractors any express or implied license to or
      interest in the Company Information. Provider hereby waives any interest,
      title, lien or right to any such Company Information. Company Information
      shall not be (i) used by Provider except as required to perform the
      Services pursuant to this Agreement, (ii) disclosed, sold, assigned,
      leased, or otherwise provided to third parties by Provider other than to
      subcontractors and vendors participating in the provision of the Services
      in accordance with the terms of this Agreement and to the extent necessary
      for such subcontractors and vendors to perform their services under this
      Agreement, (iii) commercially exploited by or on behalf of Provider, its
      employees, subcontractors and agents, or (iv) used by Provider, during and
      after the term hereof, to solicit Company employees, directly or
      indirectly, on behalf of itself or others for any purpose which is not
      directly in furtherance of Provider's obligations with respect to Affected
      Employees as set forth herein. Provider's use and handling of all data
      shall at all times be in accordance with its obligations under Section
      2.10, all data privacy and protection laws and regulations as well as
      Company's data privacy requirements as set forth on the DATA PRIVACY AND
      SECURITY PROCEDURES SCHEDULE. Company shall be entitled from time to time
      during the Term and until such time as the Company Information is returned
      to Company following expiration or termination of this Agreement to
      supplement its data privacy requirements and any resulting impact on the
      arrangements contemplated under this Agreement will be addressed in
      accordance with the Change Control Procedures. Upon request by Company at
      any time and from time to time during the Term and until such time as the
      Company Information is returned to Company following expiration or
      termination of this Agreement and without regard to the default status of
      the Parties under this Agreement, Provider and/or its subcontractors shall
      promptly deliver to Company its Company Information in electronic (tape)
      format and in such hard copy as existing on the date of the request by
      Company.

11.2. Data Security. Provider will establish and maintain electronic and
      physical safeguards against unauthorized access, destruction, loss,
      accidental or unauthorized deletion, disclosure or alteration of the
      Company Information under Provider's control that are required by
      applicable law and/or agreed to by the Parties, which will in no event be
      less rigorous than (a) those safeguards set forth on the DATA PRIVACY AND
      SECURITY PROCEDURES SCHEDULE, and (b) applicable industry standards.
      Company shall be entitled from time to time during the Term and until such
      time as the Company Information is returned to Company following
      expiration or termination of this Agreement to supplement the security
      procedures to be enforced by Provider in accordance with the Change
      Control Procedures. Where Provider provides Company, Company Group, or
      their employees, agents and contractors access to Provider systems with
      password or other access restrictions, including restrictions to prevent
      unauthorized access to portions of Provider systems containing data of
      Provider or its other customers, Company agrees to abide by all reasonable
      data security policies imposed by Provider.

11.3. Other Security Measures. Portions of the facilities used by Provider to
      provide the Services shall be subject to data and records protection and
      physical security measures set forth on the DATA PRIVACY AND SECURITY
      PROCEDURES SCHEDULE. Provider will provide the Hardware, Software and
      other resources required to meet its obligations under this Article 11. If
      Provider provides the Services from a physical location or device that is
      shared with a third party or used in part on behalf of a third party,
      Provider shall develop a process, subject to Company's prior written
      approval, to restrict access to the Company Information by Provider's
      employees, subcontractors or agents engaged in business activities on
      behalf of a third party. Where Provider provides Company, Company Group,
      or their employees, agents and contractors access to Provider facilities
      with password or other access restrictions, including restrictions to
      prevent unauthorized access to portions of Provider facilities containing
      data of Provider or its other customers, Company agrees to abide by all
      reasonable data security policies imposed by Provider. [***]*

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<PAGE>
                        ARTICLE 12. TERM AND TERMINATION

12.1. Term. The term of this Agreement will begin as of the Effective Date and
      will end as of the tenth (10th) anniversary of the Effective Date (the
      "Term"), unless earlier terminated or extended in accordance with the
      provisions of this Agreement.

12.2. Renewal. Upon expiration of the initial Term, Company may, at its option,
      renew this Agreement for one (1) additional two (2) year term. The terms
      and conditions of this Agreement (including, without limitation, the
      CHARGES SCHEDULE (SCHEDULE C)), as amended from time to time, shall govern
      the renewal term. Company shall notify Provider of its intent to renew at
      least one hundred eighty (180) days prior to the expiration of the initial
      Term. If Company renews either of the Optional Agreements, Provider may
      require Company to renew this Agreement for a concurrent renewal term.
      This Agreement shall be renewed for additional renewal terms beyond the
      initial renewal term as the Parties may in each instance agree.

12.3. Termination by Company for Cause. Company may terminate this Agreement for
      cause immediately upon written notice to Provider by Company, if:

      (a)   Provider breaches any of its material duties or obligations under
            this Agreement and does not cure such breach within [***]* after
            notice thereof; provided that if by the nature of the breach a cure
            can be achieved, but not within [***]* and that after receipt of
            such notice Provider has begun to effect a cure without undue delay,
            then Provider shall have such time as is reasonably required to
            effect a cure with continuous and diligent effort, in any event not
            to exceed [***]* from the date that Provider receives notice from
            Company of such event; or

      (b)   [***]* or

      (c)   [***]*; or

      (d)   Provider breaches its duty in accordance with the Account Governance
            Schedule to deliver the plan or to execute against such plan to
            remedy a series of non-material or persistent breaches by Provider
            that Company perceives in the aggregate to have a significant
            adverse impact on the Services and fails to cure such breach within
            [***]* after written notice thereof; provided that if by the nature
            of the breach a cure can be achieved, but not within thirty days,
            and that after receipt of such notice Provider has begun to effect a
            cure without undue delay, then Provider shall have such time as is
            reasonably required to effect a cure with continuous and diligent
            effort, in any event not to exceed [***]* from the date that
            Provider receives notice from Company of such event; or

      (e)   Provider becomes insolvent or is unable to pay its debts or enters
            into or files (or has filed or commenced against it, unless
            dismissed within [***]*) a petition, arrangement, application,
            action or other proceeding seeking relief or protection under the
            bankruptcy laws of the United States or any similar laws of the
            United States or any state of the United States or any other country
            or transfers all or substantially all of its assets to another
            person or entity in an effort to avoid its obligations to creditors;
            or

      (f)   Provider incurs Damages to Company in excess of the Provider Damages
            Cap set forth in Section 14.1 as such Damages are either finally
            adjudicated or agreed to by the Parties; or

      (g)   Company elects to terminate this Agreement for Provider's failure to
            perform the Disaster Recovery Services in accordance with the
            DISASTER RECOVERY SCHEDULE and Provider fails

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<PAGE>
            to cure such non-compliance within [***]* after written notice from
            Company of such non-compliance; or

      (h)   Company elects to terminate this Agreement upon a continuing Force
            Majeure Event as provided for in Section 19.1(c)(ii); or

      (i)   Company elects to terminate this Agreement upon the occurrence of a
            Material Termination Event.

12.4  [***]*

12.5  Termination by Company for Convenience. Company may elect to terminate
      this Agreement at any time for its convenience in accordance with the
      TERMINATION FOR CONVENIENCE SCHEDULE. [***]* after a termination for
      convenience, Company shall pay the termination fee in the amount set forth
      on the CHARGES SCHEDULE (SCHEDULE C).

12.6  Termination by Provider. Provider may terminate this Agreement for failure
      by Company to pay Charges in accordance with this Agreement (other than
      any payment of any invoiced charge that is withheld by Company as
      permitted under Section 8.3), which payment remains uncured for a period
      of [***]* after written notice thereof from Provider.

                       ARTICLE 13. EFFECT OF TERMINATION

13.1. Survival of Selected Provisions. Notwithstanding the expiration or earlier
      termination of the Services or this Agreement for any reason however
      described, the following terms of this Agreement shall survive any such
      expiration or termination: (i) Article 7, Article 8, Article 9, Article
      10, Article 11, Article 13, Article 14, Article 18, Article 20, Section
      2.6, Section 2.8, Section 2.10, Section 5.2, and Section 6.6, (ii) until
      the applicable statute of limitations expire, Section 16.1(c), Section
      16.2(c) and Section 16.1(e), and (iii) for a period of three (3) years
      after the expiration or termination date of this Agreement, Article 15,
      Article 16 (except as otherwise provided in clause (ii)), and Article 17.

13.2. Extension. Upon any termination of this Agreement by either Party, or upon
      expiration of the Term of this Agreement, Company may extend the Term of
      this Agreement for a period not to exceed [***]* after the otherwise
      effective date of termination, except that the extension period shall be
      limited to [***]* in the event of any termination by Provider under
      Section 12.5. If Company elects to extend either of the Optional
      Agreements, Provider may require Company to extend this Agreement for a
      concurrent extension term. The provisions of this Agreement will remain in
      effect during such extension. Company may exercise such option by
      providing Provider written notice of its wish to extend (i) following
      termination of this Agreement by Company for Cause at least [***]* prior
      to the otherwise effective date of termination, (ii) following termination
      of this Agreement by Company for other than Cause, at least [***]* prior
      to the otherwise effective date of termination, (iii) following
      termination of this Agreement by Provider in accordance with Section 12.6
      at least [***]* prior to the otherwise effective date of termination, or
      (iv) following expiration of this Agreement, at least [***]* prior to the
      date of expiration. Except as otherwise agreed between Company and
      Provider, payments for Services during such extension will be due on the
      standard invoicing terms set forth in Article 8 of this Agreement. If,
      however, Provider terminates this Agreement under Section 12.6, Company
      must prepay for any Baseline Charges and Recurring Third Party Costs as a
      condition to Provider's obligations under this Section 13.2 and no
      election to extend shall be effective unless accompanied by Company's
      payment in full of all then unpaid invoices notwithstanding any disputes,
      provided that Company may reserve its rights with respect to such
      disputes.

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<PAGE>
13.3. Services Transfer Assistance.

      (a)   During the period after any termination of this Agreement, or
            expiration of this Agreement (the "Termination Assistance Period"),
            Provider will perform the termination assistance services in
            accordance with the Termination Assistance Plan set forth on the
            TERMINATION ASSISTANCE PLAN SCHEDULE. The Parties will use
            reasonable efforts to limit the Termination Assistance Period to no
            more than [***]* after the termination or expiration of this
            Agreement.

      (b)   The Parties agree that Provider will be compensated for any
            Termination Assistance Services provided by Provider that require
            the use of different or additional services or resources beyond that
            which Provider is then using to provide the Services in accordance
            with the Service Levels. In that event, Provider's request for
            Termination Assistance Services will be considered New Services to
            be provided in accordance with Section 2.13. Except as otherwise
            agreed between Company and Provider, payments for Termination
            Assistance Services will be due on the standard invoicing terms set
            forth in Article 8 of this Agreement. If, however, Provider
            terminates this Agreement for cause under Section 12.6, Company must
            cure the breach giving rise to termination and will prepay for any
            such Termination Assistance Services as a condition to Provider's
            obligations under this Section 13.3.

      (c)   Within [***]* after each anniversary date of this Agreement,
            Provider will submit for Company's approval a revised Termination
            Assistance Plan, updated by Provider to reflect the then-existing
            Company environment in which the Services are provided. Upon
            approval by both Parties, each revised Termination Assistance Plan
            will be signed by both Parties and attached as an Addendum to the
            TERMINATION ASSISTANCE PLAN SCHEDULE.

      (d)   During the Termination Assistance Period, Provider will provide the
            Company Group, its Affiliates, and third parties participating in
            the transition activities, with reasonable access to the business
            processes, Hardware, Software and other resources (including human
            resources) used by Provider to deliver the Services, as necessary to
            support the transition of the Services from Provider to performance
            by Company or another provider of functions to replace the Services,
            provided that (i) any such access does not interfere with Provider's
            ability to provide the Services or Termination Assistance Services;
            and (ii) such third parties and Company's Affiliates comply with
            Provider's security and confidentiality requirements, including
            execution of a confidentiality agreement reasonably acceptable to
            Provider.

      (e)   The provisions of this Agreement will remain in effect during the
            Termination Assistance Period.

13.4. Other Rights. At the expiration or earlier termination of this Agreement
      for any reason, however described, and continuing through any extension,
      renewal and Termination Assistance Period, Provider agrees that:

      (a)   Provider will cease using all Hardware, Software and other resources
            made available by Company to Provider for purposes of performing the
            Services

      (b)   Provider will sell to Company at Company's request all other
            Hardware and tangible property that are owned by Provider and which
            on the date of expiration or termination of this Agreement Provider
            is using on a dedicated basis to perform the Services. Company will
            pay Provider in such

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<PAGE>
            event [***]* In the case of property that Provider is leasing,
            Provider agrees to permit Company or its designee to either buy-out
            the lease on such property and purchase the property from the lessor
            or assume the lease(s) and secure the release of Provider thereon.
            Company shall be responsible for any sales, use or similar taxes
            associated with such purchase of such property or the assumption of
            such leases.

      (c)   [***]*

      (d)   [***]* At Company's option, Provider will recommend a mutually
            agreeable commercially available substitute, if available, to
            perform the same function.

      (e)   For generally available third party Software which on the date of
            expiration or termination of this Agreement Provider is using:

            (i)   solely to provide the Services to the Company Group, subject
                  to all required third party consents and the payment of all
                  required fees or charges in accordance with Subsection (iii)
                  below, Provider will assign its license, if any, to such
                  Software to Company or its designee subject to assumption by
                  Company or its designee of all obligations of Provider
                  thereunder (other than obligations of Provider arising before
                  the effective Date of the assignment) [***]*; and

            (ii)  to provide Services to the Company Group and other customers
                  in a shared environment, Provider will provide reasonable
                  assistance to Company in obtaining licenses for such Software;
                  and

            (iii) [***]*

      (f)   Subject to all required third party consents, upon Company's
            request, Provider will transfer or assign to Company or its
            designee, subject to assumption by Company or its designee of all
            obligations of Provider thereunder (other than obligations of
            Provider arising before the effective date of the assignment) on
            mutually acceptable terms and conditions, any third party agreements
            applicable solely to services being provided to Company (such as
            machine maintenance, disaster recovery or other such services [***]*

      (g)   Provider will use commercially reasonable efforts not including the
            payment of license fees to negotiate license arrangements with third
            parties that will minimize the amount of license and maintenance
            agreement transfer and assignment fees to be paid by Company under
            this Section 13.4. Company may participate in the negotiation of
            such license and maintenance agreement arrangements. Provider shall
            provide reasonable advance written notice to Company of such
            anticipated negotiations.

      (h)   Company shall have the right to make offers of employment to any or
            all Provider employees who devote a substantial portion of their
            time and effort to the performance of the Services for the Company
            Group hereunder (the "Services Employees"). Provider agrees that
            promptly after either Party sends the other Party written notice of
            termination or expiration, Provider shall supply Company at no
            charge with the names and resumes requested by Company for the
            purpose of exercising its rights under this Section 13.4; provided
            that no name or resume for a specific employee shall be provided to
            Company until after Provider has notified the employee of Company's
            interest and obtained the employee's consent. Provider will waive
            any provision of any Provider/employee employment contract or
            covenant that may otherwise limit the right of any such employee to
            accept employment with the Company Group.

      (i)   Provider will provide appropriate training for the employees of
            Company or a third party provider who will be assuming
            responsibility for operating any Software, Hardware or other

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<PAGE>
            resources used by Provider in performing the Services that are being
            licensed or transferred to Company.

      (j)   Upon Company's request, Provider will provide Company reasonably
            detailed specifications for the Hardware and Software or other
            resources used by Provider in performing the Services needed by
            Company to properly provide the Services.

      (k)   All Software, Code, Works, Derivative Works, etc. provided under
            this Section 13.4 (i) are provided as is with no warranties
            whatsoever other than a warranty that to the best knowledge of
            Provider such Materials do not infringe any intellectual property
            right of any third party together with Provider's agreement to
            provide reasonable notice to Company of any subsequent claim of
            infringement with respect to such Materials; (ii) are provided
            without any obligation by Provider to provide maintenance or support
            except as specifically provided in paragraphs (i) and (j) above; and
            (iii) other than the license granted by Provider under Section
            13.4(c), may be used by Company only for purposes of providing to
            Company services in replacement of the Services provided by Provider
            under this Agreement.

13.5. Winddown. Upon expiration of this Agreement at the end of the Term or any
      extension of the Term effected pursuant to Section 13.2 or the termination
      of this Agreement for any reason, but subject to provision of Termination
      Assistance Services, Provider will cease performing the Services, and
      Company will pay Provider all amounts due as specified in this Agreement
      for Services provided and expenses incurred, as specified herein.

                             ARTICLE 14. LIABILITY

14.1. Damages and Liability Limits.

      (a)   The liability of each Party and its respective Affiliates,
            employees, officers and directors to the other for all Damages
            resulting from any claim related to or arising out of this
            Agreement, regardless of the form of action that imposes liability,
            will be limited in the aggregate to:

            (i)   for events giving rise to Damages prior to or on the last day
                  of the third month following the Process Take-On Date, an
                  amount equal to [***]*;

            (ii)  for events giving rise to Damages after the last day of the
                  third month following the Process Take-On Date but prior to
                  the one year anniversary of the Process Take-On Date, an
                  amount equal to [***]*; and

            (iii) for events giving rise to Damages after the one year
                  anniversary of the Process Take-On Date, an amount equal
                  [***]*

      The amounts set forth in (i), (ii) and (iii) above shall collectively be
      referred to as the "Damages Cap."

      (b)   Except the Agreed Damage Exceptions as set forth on the AGREED
            DAMAGE EXCEPTIONS SCHEDULE, in no event will either Party or its
            respective Affiliates, employees, officers and directors be liable
            for any amounts for (i) loss of income, profit or revenue of the
            other Party, (ii) incidental, consequential, special or indirect
            damages suffered by the other Party or (iii) punitive or exemplary
            damages suffered by the other Party arising from or related to this
            Agreement, even if such Party has been advised of the possibility of
            such Losses or damages.

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<PAGE>
14.2. Exclusions. The limitations on liability in this Agreement and the Damages
      Cap will not apply to the liability of either Party to the extent such
      liability results from (i) the failure of either Party to pay or credit
      amounts to be paid or credited under this Agreement such as, but without
      limitation, Charges for the Services, termination fees [***]* (ii) any
      infringement of the other Party's intellectual property rights by such
      Party; (iii) such Party's breach of its confidentiality obligations under
      Article 10 of this Agreement; (iv) Provider's failure to comply with its
      payment obligations under Section 19.1(c) of this Agreement; and (v) the
      Agreed Damage Exceptions as set forth on the AGREED DAMAGE EXCEPTION
      SCHEDULE.

                             ARTICLE 15. WARRANTIES

15.1. Provider Warranties. Provider warrants, represents and covenants that:

      (a)   it has, and during the Term will have, and each of the Provider
            employees and subcontractors that it will use to provide and perform
            the Services has and during the Term will have, the necessary
            knowledge, skills, experience, qualifications, rights and resources
            to provide and perform the Services in accordance with this
            Agreement; and

      (b)   the Services will be performed for Company in a professional,
            diligent and workmanlike manner in accordance with industry
            standards applicable to the performance of such services.

15.2. Party Warranties. Each Party hereby represents and warrants that:

      (a)   it will perform its responsibilities under this Agreement in a
            manner that does not infringe, or constitute an infringement or
            misappropriation of, any patent, trade secret, copyright or other
            intellectual property right of the other Party, the respective
            Affiliates of the other Party or any third party;

      (b)   it has all requisite corporate power and authority to enter, and
            fully perform pursuant to, into this Agreement;

      (c)   the execution, delivery and performance of this Agreement and the
            consummation of the transactions contemplated hereby have been duly
            and properly authorized by all requisite corporate action on its
            part;

      (d)   this Agreement has been duly executed and delivered by such Party;
            and

      (e)   this Agreement is the legal, valid and binding obligation of such
            Party, enforceable against it in accordance with its terms (assuming
            the due authorization, execution, and delivery by the other Party).

15.3. Disclaimers. EXCEPT AS PROVIDED IN THIS SECTION 15, THERE ARE NO EXPRESS
      WARRANTIES, REPRESENTATIONS, UNDERTAKINGS, OR CONDITIONS (STATUTORY OR
      OTHERWISE) BY EITHER PARTY, AND THERE ARE NO IMPLIED WARRANTIES,
      REPRESENTATIONS, UNDERTAKINGS, OR CONDITIONS (STATUTORY OR OTHERWISE) BY
      EITHER PARTY, INCLUDING THE IMPLIED WARRANTIES OF MERCHANTABILITY AND
      FITNESS FOR A PARTICULAR PURPOSE, IN THIS AGREEMENT.

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<PAGE>
                            ARTICLE 16. INDEMNITIES

16.1. Indemnity by Provider. Provider will indemnify, defend and hold each
      member of the Company Group and their respective officers, directors,
      employees, agents, successors, contractors and assigns (each a "Company
      Indemnitee") harmless on an as-incurred basis from and against any and all
      Losses incurred by any Company Indemnitee arising from or in connection
      with:

      (a)   any Claims of infringement of any patent or any copyright,
            trademark, service mark, trade name, trade secret, confidential
            information or similar intellectual property right, whether
            conferred by contract or arising under law, alleged to have been
            incurred because of or arising out of any aspect of the Services
            (including without limitation any information technology,
            information management and communications services, equipment,
            Software or other resources) provided by Provider and/or its
            subcontractors in its performance of the Services; provided,
            however, that Provider will have no obligation with respect to any
            Losses to the extent arising out of or in connection with (i) a
            Company Indemnitee's modification of any Software, Hardware or
            similar resource provided by a member of the Company Group; (ii) a
            Company Indemnitee's combination, operation or use of the equipment,
            Software or other resources provided by a Provider Indemnitee with
            devices, data, programs or other resources not furnished by a
            Provider Indemnitee; or (iii) any use by a Company Indemnitee of
            devices, data, programs or other resources furnished by Provider in
            a manner materially contravening Provider's express written
            instructions to such Company Indemnitee, except to the extent in
            each case that any of the activities described in clauses (i), (ii)
            or (iii) above was at the written request or direction of, or in
            accordance with specifications required by, Provider Indemnitee;

      (b)   any Claims arising out of personal injuries, death or damage to
            tangible personal or real property of third parties including
            employees of Provider, its contractors and subcontractors caused by
            the tortious conduct, negligence or willful misconduct of Provider,
            its employees, Affiliates, agents, contractors or subcontractors;
            provided that Provider will have no obligation under this part, to
            the extent the same arise out of or in connection with the tortious
            conduct, negligence or willful misconduct of a member of the Company
            Group or any other Company Indemnitee;

      (c)   any Claims for Taxes assessed or claimed against the Company Group
            which are obligations of Provider under this Agreement (including
            the obligations of Provider regarding Taxes described in Section 7.2
            of this Agreement) or result from breach of obligations of Provider
            under this Agreement, including, without limitation, any fines,
            penalties, administrative fees or the like payable by Company to any
            governmental entity (whether or not a taxing entity) arising from
            Provider's failure to comply with its obligations under this
            Agreement;

      (d)   any Claim by a third party (including without limitation employees
            of Company or its contractors or subcontractors) resulting from
            inadequacies in the physical and data security control systems to
            the extent such physical and data security control systems are the
            responsibility of Provider under Section 11 of this Agreement and
            any act by Provider or any employee, agent, contractor or
            sub-contractor of Provider resulting in a breach of Provider's
            obligations under Section 11 (including, without limitation, any
            theft, conversion, misappropriation, unauthorized disclosure or
            other misuse of or unauthorized access to Company's Company
            Information);

      (e)   any Claims for penalties, interest and other charges imposed by a
            taxing authority (except the actual taxes payable by Company under
            the terms of this Agreement) arising out of or resulting from
            Provider's issuance of an incorrect invoice or other information
            provided to Company in writing regarding its charges to Company for
            the Services to Company;

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                                                                         Page 24
<PAGE>
      (f)   any Claims by any Affected Employees arising out of or resulting
            from their treatment by Provider as employees of Provider and any
            Claims resulting from any breach by Provider of its obligations
            under the AFFECTED EMPLOYEE ARRANGEMENTS SCHEDULE (SCHEDULE J); and

      (g)   any Claims arising out of any breach by Provider of Sections 2.10,
            10 or 11.

16.2. Indemnity by Company. Company will indemnify, defend and hold Provider,
      its Affiliates and their respective officers, directors, employees,
      agents, successors and assigns (each a "Provider Indemnitee") harmless on
      an as-incurred basis from and against any and all Losses incurred by any
      Provider Indemnitee arising from or in connection with:

      (a)   any Claims of infringement of any patent or any copyright,
            trademark, service mark, trade name, trade secret, confidential
            information or similar intellectual property right, whether
            conferred by contract or arising under law, alleged to have been
            incurred because of or arising out of any equipment, materials and
            other resources (including without limitation information
            technology, information management and communications services
            equipment, Software or other resources) provided to Provider by the
            Company Group in connection with the performance of the Services;
            provided, however, that Company will have no obligation with respect
            to any Losses to the extent arising out of or in connection with (i)
            a Provider Indemnitee's modification of any Software, Hardware or
            similar resource provided by a member of the Company Group; or (ii)
            a Provider Indemnitee's combination, operation or use of the
            equipment, Software or other resources provided by a Company
            Indemnitee and/or its other contractors with devices, data, programs
            or other resources not furnished by a Company Indemnitee and/or its
            other contractors; or (iii) any use by a Provider Indemnitee of
            devices, data, programs or other resources furnished by Company in a
            manner materially contravening Company's express written
            instructions to such Provider Indemnitee , except to the extent in
            each case that any of the activities described in clauses (i) , (ii)
            or (iii) above was at the written request or direction of, or in
            accordance with specifications required by, Company Indemnitee
            and/or its other contractors;

      (b)   any Claim arising out of or relating to personal injuries, death or
            damage to tangible personal or real property of third parties
            including employees of the Company Group caused by the tortious
            conduct, negligence or willful misconduct of the Company Group or
            their employees and agents; provided that Company will have no
            obligation, under this part, to the extent the same arise out of or
            in connection with the tortious conduct, negligence or willful
            misconduct of Provider, its Affiliates , subcontractors or any other
            Provider Indemnitee;

      (c)   any Claim for Taxes assessed or claimed against Provider which are
            obligations of Company under this Agreement (including the
            obligations of Company regarding Taxes described in Section 7.2 of
            this Agreement) or result from breach of obligations of Company
            under this Agreement, including, without limitation, any fines,
            penalties, administrative fees or the like payable by Provider to
            any governmental entity (whether or not a taxing entity) arising
            from Company's failure to comply with its obligations under this
            Agreement;

      (d)   any Claims by any Affected Employees arising out of or resulting
            from their treatment by any member of the Company Group as employees
            of the Company Group and Claims resulting from any breach by Company
            of its obligations under the AFFECTED EMPLOYEE ARRANGEMENT SCHEDULE
            (SCHEDULE J);

      (e)   any Claims arising out of any breach by Company of Sections 2.10, 10
            or 11; and

      (f)   any Claims arising out of any breach by Company of its obligations
            under ERISA except to the extent that such Claims are the result of
            or arise out of Provider's breach of its

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<PAGE>
            obligations under this Agreement or any act or omission of Provider
            in contravention of any written instructions from Company Group.

16.3. Indemnification Procedures.

      (a)   Written notice shall be given to the Party that is obligated to
            provide indemnification under Sections 16.1 and 16.2 (the
            "Indemnifying Party"), if any civil, criminal, administrative or
            investigative action or proceeding is commenced or threatened by a
            third party (any of the above being a "Claim") against any Party
            entitled to receive indemnification under Sections 16.1 and 16.2
            (the "Indemnified Party"). Such notice shall be given as promptly as
            practicable but in all events, within a period that will not
            prejudice the rights of the Indemnified Party under this Agreement
            or to defend the Claim. After such notice, if the Indemnifying Party
            acknowledges in writing to the Indemnified Party that this Agreement
            applies with respect to such Claim, then the Indemnifying Party
            shall be entitled to take control of the defense and investigation
            of such Claim and to employ and engage attorneys of its sole choice
            to handle and defend the same, at the Indemnifying Party's sole cost
            and expense. The Indemnifying Party must deliver written notice of
            its election to take control of the claim to the Indemnified Party
            not fewer than [***]* prior to the date on which a response to such
            Claim is due or such lesser period as is reasonable given the nature
            of the Claim and the notice and response time permitted by law or
            the facts and circumstances.

      (b)   The Indemnified Party shall cooperate in all reasonable respects
            with the Indemnifying Party and its attorneys in the investigation,
            trial, defense and settlement of such Claim and any appeal arising
            therefrom. The Indemnified Party may participate in such
            investigation, trial, defense and settlement of such Claim and any
            appeal arising therefrom, through its attorneys or otherwise, at its
            own cost and expense. No settlement of a Claim that involves a
            remedy other than the payment of money by the Indemnifying Party
            shall be entered into without the consent of the Indemnified Party.

      (c)   After notice to the Indemnified Party of the Indemnifying Party's
            election to assume full control of the defense of any such Claim,
            the Indemnifying Party shall not be liable for any legal expenses
            incurred thereafter in connection with the defense of that Claim by
            the Indemnified Party. If the Indemnifying Party does not promptly
            assume full control over and diligently pursue the defense of a
            Claim as provided in this Section 16.3, the Indemnified Party shall
            have the right to defend, settle or otherwise resolve the Claim in
            such manner as it may deem appropriate, at the cost and expense of
            the Indemnifying Party, and the Indemnifying Party may participate
            in such defense, at its sole cost and expense. In no event shall any
            settlement of the Claim require the consent of the Indemnifying
            Party, unless the Indemnifying Party is required to be a party to
            such settlement agreement.

16.4. Clarifications. In the event and to the extent that a Claim is made
      against an Indemnitee by an employee of the Indemnifying Party or its
      contractors or subcontractors, the Parties agree that the Indemnifying
      Party shall indemnify and hold harmless the Indemnitee to the same extent
      as if the Claim were made by a non-employee of the Indemnifying Party, its
      contractors or subcontractors.

16.5. Primary Indemnification. The indemnification provided by each Indemnifying
      Party hereunder shall be primary and immediate. Accordingly, in addition
      to other provisions herein, and in order to render the Parties' intent and
      this indemnification agreement fully enforceable, each Indemnifying Party,
      in an indemnification claim hereunder, expressly and without reservation
      waives any defense or immunity it may have under any statute or judicial
      decision disallowing or limiting such indemnification and consents to a
      cause of action for indemnity. This waiver and consent to indemnification
      is made irrespective of and specifically waiving any defense or immunity
      under any statute or judicial decision.

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* Confidential information has been omitted

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<PAGE>
                             ARTICLE 17. INSURANCE

17.1. Provider Insurance. During the term of this Agreement, Provider will
      maintain the insurance coverages specified in the INSURANCE SCHEDULE in
      amounts no less than the coverage amounts set forth on the INSURANCE
      SCHEDULE. Except for workers' compensation insurance and errors and
      omissions insurance, Company shall be named as an additional insured on
      all such required policies, and as such the carriers shall undertake to
      provide at least [***]* prior written notice of cancellation or
      modification of such policies. No such cancellation, modification or
      change shall affect Provider's obligation to maintain the insurance
      coverages required by this Agreement. The coverage afforded under any
      insurance policy obtained by Provider pursuant to this Agreement shall be
      primary coverage regardless of whether or not Company has similar
      coverage. Provider and its contractors and subcontractors shall not
      perform under this Agreement without the prerequisite insurance. Upon
      Company's request, Provider shall provide Company with certificates of
      such insurance including renewals thereof. The minimum limits of coverage
      required by this Agreement may be satisfied by a combination of primary
      and excess or umbrella insurance policies. If Provider or its contractors
      or subcontractors shall fail to comply with any of the insurance
      requirements herein, upon written notice to Provider by Company and a
      [***]* cure period, Company may, without any obligation to do so, procure
      such insurance and Provider shall pay Company the cost thereof plus a
      reasonable administrative fee as designated by Company. The maintenance of
      the insurance coverages required under this Agreement shall in no way
      operate to limit the liability of Provider to Company under the provisions
      of this Agreement. The Parties do not intend to shift all risk of loss to
      insurance. The naming of Company as additional insured is not intended to
      be a limitation of Provider's liability and shall in no event be deemed
      to, or serve to, limit Provider's liability to Company to available
      insurance coverage or to the policy limits specified in this Section 17.1,
      nor to limit Company's rights to exercise any and all remedies available
      to Company under contract, at law or in equity.

17.2. Mutual Waiver of Subrogation.

      (a)   To the extent permitted by law and applicable insurance policies,
            Provider, its contractors, subcontractors, and their respective
            insurers hereby waive their rights of subrogation against the
            Company Group and their respective directors, officers, employees
            and agents for any loss or damage to the Provider provided machines,
            Provider Software, and other tangible and intangible, real and
            personal property of Provider, its contractors and subcontractors
            resulting from operations in connection with this Agreement. Each
            property and workers' compensation insurance policy of Provider, its
            contractors and subcontractors shall be endorsed to provide a waiver
            of any and all rights of subrogation against the Company Group and
            their respective directors, officers, employees and agents for loss
            resulting from operations in connection with this Agreement.

      (b)   To the extent permitted by law and applicable insurance policies,
            Company, its directors, officers, employees and agents hereby waive
            their rights of subrogation against Provider, its contractors and
            subcontractors for any loss or damage to the Company provided
            Hardware, Software, office furnishings and other tangible and
            intangible, real and personal property of Company, its directors,
            officers, employees and agents resulting from operations in
            connection with this Agreement. Each property and worker's
            compensation insurance policy of Company shall be endorsed to
            provide a waiver of any and all rights of subrogation against
            Provider, its contractors and subcontractors for loss resulting from
            operations in connection with this Agreement.

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* Confidential information has been omitted

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<PAGE>
                         ARTICLE 18. DISPUTE RESOLUTION

18.1. Dispute Resolution Process. All disputes will be subject to the Dispute
      Resolution Process set forth in the DISPUTE RESOLUTION SCHEDULE.

18.2. Continued Performance. The Parties agree to continue performing their
      respective obligations under this Agreement while the dispute is being
      resolved unless and until such obligations are terminated or expire in
      accordance with the provisions of this Agreement.

                           ARTICLE 19. FORCE MAJEURE

19.1. Force Majeure.

      (a)   Neither Party shall be liable for any default or delay in the
            performance of its obligations hereunder if and to the extent and
            while such default or delay is caused, directly or indirectly, by
            fire, flood, earthquake, elements of nature or acts of God, acts of
            war, terrorism, riots, civil disorders, rebellions or revolutions in
            the United States, strikes, lockouts, or labor difficulties or any
            other similar cause beyond the reasonable control of such Party
            other than strikes, lockouts, or labor difficulties initiated by
            such Party's or its subcontractor's employees; provided such default
            or delay could not have been prevented by reasonable precautions and
            cannot reasonably be circumvented by the nonperforming Party through
            the use of alternate sources, work-around plans or other means,
            (individually, each being a "Force Majeure Event").

      (b)   If a Force Majeure Event occurs, the nonperforming Party will be
            excused from any further performance or observance of the
            obligation(s) so affected for as long as such circumstances prevail
            and such Party continues to use commercially reasonable efforts to
            recommence performance or observance whenever and to whatever extent
            reasonably possible without delay. Any Party so delayed in its
            performance will immediately notify the other by telephone and
            describe at a reasonable level of detail the circumstances causing
            such delay (to be confirmed in writing within [***]* after the
            inception of such delay).

      (c)   If any Force Majeure Event substantially prevents, hinders, or
            delays performance of the Services necessary for the performance of
            Company's critical functions for more than [***]* then Company may
            at its option:

            (i)   subject to SECTION 19.2, procure such Services from an
                  alternate source until Provider is able to provide the
                  Services. During the Force Majeure Event, Provider will
                  directly and timely pay the alternate source the full amount
                  charged by such alternate source for the provision of such
                  Services to Company until such time as Provider is able to
                  restore the Services and meet the Service Levels, but in no
                  event for more than [***]*; or

            (ii)  if Provider has been unable to restore the Services without
                  aid of such alternative source within [***]* Company may
                  terminate this Agreement as of a date specified by Company in
                  a written notice of termination to Provider, and Company will
                  pay all Charges due and payable through the termination date
                  so specified by Company in its notice to Provider. If Company
                  elects such termination, Company shall not be obligated to pay
                  any other termination or other fees, however described, to
                  Provider, except charges for Termination Assistance Services.

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<PAGE>
19.2. Exceptions. Section 19.1 does not limit or otherwise affect Provider's
      obligation to provide Disaster Recovery Services in accordance with
      Section 2.7. In the event of a Force Majeure Event affecting Company,
      Section 19.1 will not limit or otherwise relieve Company's obligation to
      pay any monies due Provider under the terms of this Agreement.

                           ARTICLE 20. GENERAL TERMS

20.1. Governing Law. This Agreement and any and all claims and disputes arising
      out of or in connection with or related to the relationships and
      arrangements between the Company Group and Provider described in this
      Agreement will be governed by and construed in accordance with the laws of
      the State of New York (to the extent not preempted by federal law),
      exclusive of its conflicts of laws provisions.

20.2. Choice of Forum. Subject to the Dispute Resolution Process, the Parties
      hereby (i) agree that the courts sitting in New York, New York shall have
      exclusive jurisdiction over the actions arising out of or related to or in
      connection with this Agreement and the subject matter of this Agreement,
      whether in contract tort, or any other form of action ("Action"); (ii)
      agree to initiate any such Action against the other Party only in such
      courts; (iii) agree that they shall not raise any defense to the lawful
      jurisdiction of such courts; and (iv) agree that they shall not attempt
      the removal of any Action to any other court, whether local, state or
      federal courts of the United States or the courts of any other country.

20.3. Relationship of the Parties. This Agreement shall not be construed as
      constituting either Party as partner of the other or to create any other
      form of legal association that would impose liability upon one Party for
      the act or failure to act of the other. This Agreement shall not be
      construed as providing either Party with the right, power or authority
      (express or implied) to create any duty or obligation of the other Party,
      except to the limited extent consistent with the appointment of Provider
      as Company's representative pursuant to Section 3.3. Each Party shall be
      responsible for the management, direction and control of its employees and
      such employees shall not be employees of the other Party. It is the mutual
      intent and understanding of the Parties that each Party in performing its
      obligations under this Agreement shall be an independent contractor
      engaged in the business of providing such services.

20.4. Publicity. Each Party will submit to the other Party all advertising,
      written sales promotion, press releases and other publicity matters
      relating to this Agreement in which the other Party's name or mark is
      mentioned or language from which the connection of said name or mark may
      be inferred or implied, and will not publish or use such advertising,
      sales promotion, press releases, or publicity matters without prior
      written approval of the other Party. However, either Party may include the
      other Party's name, and a factual description of the work performed under
      this Agreement with language substantially equivalent to language approved
      in a previously published press release, on employee bulletin boards, in
      its list of references and in the experience section of proposals to third
      parties, in internal business planning documents and in its annual report
      to stockholders, and whenever required by reason of legal, accounting or
      regulatory requirements.

20.5. Entire Agreement, Updates, Amendments and Modifications. This Agreement,
      including all Schedules attached hereto, constitute the entire agreement
      of the Parties with regard to the Services and matters addressed therein,
      and all prior agreements, letters, proposals, discussions and other
      documents regarding the Services and the matters addressed in this
      Agreement (including the Schedules) are superseded and merged into this
      Agreement (including the Schedules). Updates, amendments and modifications
      to this Agreement may not be made orally, but shall only be made by a
      written document signed by both Parties. Any terms and conditions varying
      from this Agreement (including the Schedules) on any order or written
      notification from either Party shall not be effective or binding on the
      other Party.

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<PAGE>
20.6.  Waiver. No waiver of any breach of any provision of this Agreement shall
       constitute a waiver of any prior, concurrent or subsequent breach of the
       same or any other provisions hereof.

20.7.  Severability. If any provision of this Agreement shall be held to be
       invalid, illegal or unenforceable by any court or other tribunal with
       jurisdiction over any proceeding relating to such provision, the
       validity, legality and enforceability of the remaining provisions shall
       not in any way be affected or impaired thereby, and such provision shall
       be deemed to be restated to reflect the Parties' original intentions as
       nearly as possible in accordance with applicable law(s).

20.8.  Counterparts. This Agreement shall be executed in counterparts. Each such
       counterpart shall be an original and together shall constitute but one
       and the same document.

20.9.  Binding Nature and Assignment. This Agreement will be binding on the
       Parties and their respective successors and permitted assigns. Except as
       provided in this Section 20.9, neither Party may, or will have the power
       to, assign this Agreement without the prior written consent of the other,
       [***]* The assigning Party shall remain fully liable for and shall not be
       relieved from the full performance of all obligations under this
       Agreement. Any attempted assignment that does not comply with the terms
       of this Section 20.9 shall be null and void.

20.10. Notices.

       (a)    Under this Agreement whenever one Party is required or permitted
              to give notice to the other Party, such notice will be in writing
              unless otherwise specifically provided herein and will be deemed
              given when delivered in hand, one (1) day after being given to an
              express courier with a reliable system for tracking delivery, or
              five (5) days after the day of mailing, when mailed by United
              States mail, registered or certified mail, return receipt
              requested, postage prepaid.

       (b)    Notifications will be addressed as follows:

              (i)    For all notices:

                                    In the case of Company:
                                    [***]*

                                    In the case of Provider:
                                    [***]*

              (ii)   For notices relating to termination, breach or default,
                     also notify:

                                    In the case of Company:
                                    [***]*

                                    In the case of Provider:
                                    [***]*

       Either Party may from time to time change its address for notification
       purposes by giving the other prior written notice of the new address and
       the date upon which it will become effective.

20.11. No Third Party Beneficiaries. The Parties do not intend, nor will any
       Section hereof be interpreted, to create for the benefit of any third
       party any beneficiary rights with respect to either of the Parties,
       except each member of the Company Group shall be a third party
       beneficiary under this Agreement.

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* Confidential information has been omitted

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<PAGE>
20.12. Other Documents. Upon request of the other Party, on or after the
       Effective Date and the date(s) of any amendments or revisions hereto each
       Party shall furnish to the other a certificate of an executive officer
       confirming that this Agreement and any amendment or revision hereto has
       been duly executed and delivered on behalf of such Party.

20.13. Consents and Approvals. The Parties agree that in any instance where
       consent, approval or agreement is required of a Party in order for the
       other Party to perform under or comply with the terms and conditions of
       this Agreement, then such Party will not unreasonably withhold or delay
       such consent, approval or agreement, and where consent, approval or
       agreement cannot be provided, the Party shall notify the other Party in a
       timely manner.

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                                                                         Page 31
<PAGE>
                                   APPENDIX A

                                    GLOSSARY

                                       TO
                          TECHNICAL SERVICES AGREEMENT

                                     between

                           INTERNATIONAL PAPER COMPANY

                                       and

                                   EXULT, INC.

      This Glossary contains the definitions of the capitalized terms used in
the Master Services Agreement between International Paper Company and Exult,
Inc. dated as of the Effective Date.

Action                                    has the meaning given in Section 20.2.

Additional Agreements                     has the meaning given in the
                                          ADDITIONAL AGREEMENTS SCHEDULE.

Affected Employees                        has the meaning given in Section 1.0
                                          of the AFFECTED EMPLOYEE ARRANGEMENTS
                                          SCHEDULE (SCHEDULE J) relating to the
                                          individuals who are listed in the
                                          AFFECTED EMPLOYEES SCHEDULE (SCHEDULE
                                          D), as such Schedule is updated from
                                          time to time after the Effective Date.

Affiliates                                means, with respect to a Party, any
                                          entity at any time Controlling,
                                          Controlled by or under common Control
                                          with such Party.

Agreed Damages Exceptions                 means those matters set forth on the
                                          AGREED DAMAGE EXCEPTIONS SCHEDULE that
                                          are not subject to certain limitations
                                          and waivers of liability set forth in
                                          Article 14 of this Agreement.

Agreement                                 means this Technical Services
                                          Agreement and the Schedules referenced
                                          herein.

Benchmark Process                         has the meaning given in the
                                          Benchmarking Schedule.

Confidential        Glossary to Technical Services Agreement
<PAGE>
Cause                                     means termination of this Agreement by
                                          Company pursuant to Section 12.3 of
                                          this Agreement.

Change Control Procedures                 means the change control process set
                                          forth on the CHANGE CONTROL SCHEDULE.

Change of Control                         [***]*

Charges                                   means the Baseline Charges, Additional
                                          Resource Charges, Reduced Resource
                                          Charges, Third Party Costs, Allocated
                                          Costs, project fees, charges for New
                                          Services, and any other charges, each
                                          as described in the CHARGES SCHEDULE
                                          (SCHEDULE C).

Claim                                     has the meaning given in
                                          Section 16.3(a).

COBRA                                     means the Consolidated Omnibus Budget
                                          Reconciliation Act of 1985 and any
                                          regulations promulgated thereunder.

Code                                      means computer programming code,
                                          including Source Code, Object Code and
                                          Script Language code.

Company                                   has the meaning given in the first
                                          paragraph of this Agreement.

Company Group                             means individually and collectively
                                          Company and any of its existing and
                                          future Affiliates [***]*

Company Group Business                    means the businesses engaged in by the
                                          Company Group.

Company Indemnitee                        has the meaning given in Section 16.1.

Company Information                       means the Company Confidential
                                          Information, the Company Trade Secrets
                                          and any and all other data or
                                          information of any kind owned or held
                                          in custody by any member of the
                                          Company Group, including, without
                                          limitation, all records and reports
                                          related to the Company Group, the
                                          Company Group Business and the
                                          Services and employee related data.

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

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                                                                          Page 2
<PAGE>
Company Software Assets                   means the Software owned by or
                                          licensed to Company listed in the
                                          SOFTWARE RIGHTS SCHEDULE (SCHEDULE F).

Company Support Services                  means the information technology
                                          services provided or to be provided by
                                          Affected Employees.

Confidential Information                  means any and all proprietary business
                                          information in the possession of the
                                          disclosing Party treated as secret by
                                          the disclosing party (that is, it is
                                          the subject of efforts by the
                                          disclosing Party or its Affiliates
                                          that are reasonable under the
                                          circumstances to maintain its secrecy)
                                          that does not constitute a Trade
                                          Secret, including, without limitation,
                                          any and all proprietary information in
                                          the possession of such Party of which
                                          the receiving Party becomes aware as a
                                          result of its access to and presence
                                          at the other Party's facilities.

Contract Year                             has the meaning given in the CHARGES
                                          SCHEDULE (SCHEDULE C).

Control, Controlling, or Controlled       means possessing, directly or
                                          indirectly, the power to direct or
                                          cause the direction of the management
                                          and policies of an entity, whether
                                          through ownership of voting
                                          securities, by contract or otherwise.

Damages                                   mean actual, direct, damages incurred
                                          by the claiming Party which include
                                          the following non-exhaustive examples,
                                          in the case of Company: (i) the costs
                                          of cover incurred by the Company Group
                                          to obtain services which are the same
                                          as or substantially similar to the
                                          Services; (ii) the costs to correct
                                          any deficiencies in the Services
                                          rendered by Provider; (iii) the costs
                                          incurred by the Company Group to
                                          transition to another services
                                          provider and/or to take some or all of
                                          such functions and responsibilities
                                          in-house; and (iv) the difference in
                                          the amounts to be paid to Provider
                                          hereunder and the charges to be paid
                                          to such other provider and/or the
                                          costs of providing such functions,
                                          responsibilities and tasks in-house.

Damages Cap                               has the meaning given in Section 14.1.

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                                                                          Page 3
<PAGE>
Derivative Code                           means Code that satisfies the
                                          definition of a Derivative Work.

Derivative Work                           shall mean a work that is based upon
                                          one or more preexisting works, such as
                                          a revision, modification, translation,
                                          abridgement, condensation, expansion,
                                          or any other form in which a
                                          preexisting work may be recast,
                                          transformed, or adapted, and that, if
                                          prepared without the authorization of
                                          the owner of the preexisting work,
                                          would constitute a copyright
                                          infringement.

Disaster Recovery Services                means the Services described in the
                                          DISASTER RECOVERY SCHEDULE.

Dispute Resolution Process                has the meaning given in the DISPUTE
                                          RESOLUTION SCHEDULE.

Effective Date                            means October 18, 2001, at 12:00 am,
                                          CST.

Employee Service Center                   means the portion of the Company's
                                          facility located at 4049 Willow Lake
                                          Boulevard, Willow Lake Business Park,
                                          Memphis, Tennessee 38118 through which
                                          Company performs human resources
                                          related functions.

ERISA                                     means the Employee Retirement Income
                                          Security Act of 1974 and any
                                          regulations promulgated thereunder.

Event-Related Damages                     means the aggregate amount of Damages
                                          to Company, plus any amounts that
                                          Company is entitled to recover from
                                          Provider under Section 16.1(c), that
                                          collectively are caused by an event or
                                          series of related events with respect
                                          to which a Service Credit is paid or
                                          credited.

Exclusive Services                        means the Services that Company shall
                                          purchase exclusively from Provider
                                          during the Term as described in the
                                          SERVICES SCHEDULE (SCHEDULE A).

Fees at Risk                              has the meaning set forth in CHARGES
                                          SCHEDULE (SCHEDULE C).

Force Majeure Event                       has the meaning given in Section 19.1.

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                                                                          Page 4
<PAGE>
Glossary                                  means this Appendix A Glossary to the
                                          Technical Services Agreement.

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

HIPAA                                     means the Health Insurance Portability
                                          and Accountability Act of 1996 and any
                                          regulations promulgated thereunder.

Human Resources Agreement                 means that certain Human Resources
                                          Services Agreement, Services dated as
                                          of October 18, 2001, entered into
                                          between the parties.

Indemnified Party                         has the meaning given in Section 16.3.

Indemnifying Party                        has the meaning given in Section 16.3.

Initial Services Period                   has the meaning given in the CHARGES
                                          SCHEDULE (SCHEDULE C).

Key Performance Indicators or KPIs        has the meaning given in the SERVICE
                                          LEVELS SCHEDULE (SCHEDULE B).

Losses                                    means all losses, liabilities,
                                          damages, penalties and claims
                                          (including taxes and all related
                                          interest and penalties incurred
                                          directly with respect thereto), and
                                          all related costs, expenses and other
                                          charges (including all reasonable
                                          attorneys' fees and reasonable costs
                                          of investigation, litigation,
                                          settlement judgment, interest and
                                          penalties).

Maintenance Release                       means those software fixes and updates
                                          provided by vendors of the Software as
                                          part of normal maintenance service for
                                          the software, such as, for example,
                                          software point releases.

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                                                                          Page 5
<PAGE>
Material Termination Event                means the termination for cause by
                                          Company of the Human Resources
                                          Services Agreement or the Systems
                                          Services Agreement.

Materials                                 means expressions of literary works or
                                          other works of authorship, Code and
                                          other development works of any kind
                                          (such as programs, program listings,
                                          programming tools, documentation,
                                          reports, drawings and similar works)
                                          that are developed by Provider,
                                          Company, or by Provider and Company
                                          (or the contractors or subcontractors
                                          of either Party), under or in
                                          connection with this Agreement.

Migration Date                            [***]*

New Services                              has the meaning given in Section 2.13.

Object Code                               is the version of Software that exists
                                          in the form of binary-coded machine
                                          instructions that may be specific to a
                                          CPU or computer model or family. It is
                                          sometimes called operating code or
                                          machine language. Object Code is
                                          created by using programs called
                                          assemblers, compilers and interpreters
                                          to convert the Source Code written by
                                          human software developers into the
                                          binary machine language the computer
                                          understands.

Optional Agreements                       means the Human Resources Services
                                          Agreement and the Systems Services
                                          Agreement.

Parties                                   means Company and Provider as
                                          identified on the initial page of this
                                          Agreement.

Party                                     means Company or Provider as detailed
                                          on the initial page of this Agreement.

Pre-Existing Property                     means any product, Code, property,
                                          works or other subject matter of any
                                          kind owned or licensed by either
                                          Party, its Affiliate, sub-contractors
                                          or licensors independent from, or
                                          prior to the commencement date of, the
                                          applicable development or deployment
                                          activity under this Agreement.

Process Take-On Date                      has the meaning given in Section 5.1.

----------
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                                                                          Page 6
<PAGE>
Proprietary Information                   means collectively the Confidential
                                          Information and Trade Secrets.
                                          Proprietary Information also includes
                                          information which has been disclosed
                                          to either Party by a third party which
                                          such Party is obligated to treat as
                                          confidential or secret.

Provider                                  has the meaning given in the first
                                          paragraph of this Agreement.

Provider Managers                         has the meaning given in Section 6.3.

Provider Indemnitee                       has the meaning given in Section 16.2.

Related Documentation                     means, with respect to Software,
                                          documentation, as relevant to the
                                          scope of the license for the
                                          particular Software, that describes
                                          the function and use (and installation
                                          and operation) of such Software, which
                                          may include the specifications,
                                          technical manuals, user manuals,
                                          procedures manuals, system manuals,
                                          flow diagrams, and file descriptions.

Relationship Manager                      has the meaning given in the ACCOUNT
                                          GOVERNANCE SCHEDULE.

Retained Agreements                       has the meaning given in the SOFTWARE
                                          RIGHTS SCHEDULE (SCHEDULE F).

Reporting Service Levels or RSL's         has the meaning given in the SERVICE
                                          LEVELS SCHEDULE (SCHEDULE B).

Right to Use Agreements                   has the meaning given in the SOFTWARE
                                          RIGHTS SCHEDULE (SCHEDULE F).

Schedules                                 means the schedules to this Agreement.

Script Language                           is a high-level command language that
                                          is interpreted by the computer
                                          (translated on the fly) without having
                                          to be compiled. Script Language is
                                          usually used to write scripts for
                                          limited functions that augment an
                                          application or system program. Macros
                                          and communications program scripts are
                                          other examples. Script Language is not
                                          a general-purpose programming
                                          language. Examples, of Script Language
                                          include Hyper-Text Mark-up Language
                                          (HTML) and Microsoft's Visual Basic
                                          for Applications (VBA).

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<PAGE>
Service Credits                           has the meaning set forth in the
                                          CHARGES SCHEDULE (SCHEDULE C).

Service Levels                            means the service levels and
                                          performance responsibilities under
                                          which the Services will be provided,
                                          which shall include Key Performance
                                          Indicators and Reporting Service
                                          Levels. The Service Levels are
                                          described in the SERVICE LEVELS
                                          SCHEDULE (SCHEDULE B).

Services                                  means the Services to be provided by
                                          Provider as set forth in the SERVICES
                                          SCHEDULE (SCHEDULE A), the TRANSITION
                                          PLAN SCHEDULE (SCHEDULE G) and the
                                          other Schedules to this Agreement and
                                          as those services may evolve and be
                                          supplemented and enhanced during the
                                          Term. Any New Services are included
                                          among the Services once Company
                                          accepts Provider's quote pursuant to
                                          Section 2.13(b) and elects to have
                                          Provider perform the New Services.

Services Employees                        has the meaning given in Section
                                          13.4(i).

Similar Services                          has the meaning given in Section 1.6.

Software                                  means and includes, as relevant to the
                                          scope of the license for the
                                          particular Software, Script Languages,
                                          Source Code or Object Code versions of
                                          any computer programs (including
                                          operating system programs, computer
                                          utilities programs), and Related
                                          Documentation, in whatever format or
                                          media, including the tangible media
                                          upon which such programs and Related
                                          Documentation are recorded or printed.

Systems Services Agreement                means that certain Systems Services
                                          Agreement, dated as of October 18,
                                          2001, entered into between the
                                          Parties.

Source Code                               means the version of Software that
                                          exists in the form of statements and
                                          instructions written by, and readable
                                          by, a human Software developer. Source
                                          Code is not directly executable by a
                                          computer, but must first be converted
                                          into Object Code by compilers,
                                          assemblers or interpreters. Source
                                          Code differs from Script Language
                                          which is both readable

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                                                                          Page 8
<PAGE>
                                          by a human software developer and is
                                          executable by a computer without
                                          compiling or assembling.

Tax Claim                                 has the meaning given in Section 7.2.

Taxes                                     means foreign, federal, state and
                                          local sales, use, gross receipts,
                                          excise, telecommunications, value
                                          added, goods and services, provincial
                                          sales, other similar types of transfer
                                          taxes, duties, fees or charges
                                          (including any related penalties,
                                          additions to tax, and interest),
                                          however designated or imposed, which
                                          are in the nature of a transaction
                                          tax, duty, fee or charge, but not
                                          including any taxes, duties, fees or
                                          charges imposed on or measured by net
                                          or gross income (other than any such
                                          taxes which are in the nature of
                                          transaction taxes of the type listed
                                          above), capital stock or net worth or
                                          in the nature of an income, capital,
                                          franchise, or net worth tax.

Term                                      has the meaning given in Section 12.1,
                                          and includes any extension or renewal
                                          term arising pursuant to this
                                          Agreement.

Termination Assistance Period             has the meaning given in Section 13.3.

Termination Assistance Plan               means the plan to be created by
                                          Provider in accordance with the
                                          TERMINATION ASSISTANCE SCHEDULE, under
                                          which plan Provider will assist
                                          Company in transitioning the Services
                                          to Company or to another provider
                                          after termination of the Services
                                          Agreement.

Termination Assistance Services           means the termination assistance
                                          services described in Sections 13.3
                                          and 13.4 and the TERMINATION
                                          ASSISTANCE SCHEDULE.

Third Party Agreements                    means those third party arrangements
                                          listed in, the SOFTWARE RIGHTS
                                          SCHEDULE (SCHEDULE F) and the HARDWARE
                                          RIGHTS SCHEDULE (SCHEDULE M).

Third Party Costs                         has the meaning given in the CHARGES
                                          SCHEDULE (SCHEDULE C).

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                                                                          Page 9
<PAGE>
Trade Secrets                             mean information related to the
                                          services or business of the disclosing
                                          Party or its Affiliates or of a third
                                          party which (a) derives economic
                                          value, actual or potential, from not
                                          being generally known to or readily
                                          ascertainable by other persons who can
                                          obtain economic value from its
                                          disclosure or use; and (b) is the
                                          subject of efforts by the disclosing
                                          Party or its Affiliates that are
                                          reasonable under the circumstances to
                                          maintain its secrecy, including
                                          without limitation (i) marking any
                                          information reduced to tangible form
                                          clearly and conspicuously with a
                                          legend identifying its confidential or
                                          proprietary nature; (ii) identifying
                                          any oral presentation or communication
                                          as confidential immediately before,
                                          during or after such oral presentation
                                          or communication; or (iii) otherwise,
                                          treating such information as
                                          confidential or secret. Assuming the
                                          criteria in sections (a) and (b) above
                                          are met, Trade Secrets include, but
                                          are not limited to, technical and
                                          non-technical data, employee data,
                                          personally identifiable information,
                                          formulas, patterns, compilations,
                                          computer programs and software,
                                          devices, drawings, processes, methods,
                                          techniques, designs, programs,
                                          financial plans, product plans, and
                                          lists of actual or potential customers
                                          and suppliers.

Transition Plan                           means the Transition Plan described in
                                          the TRANSITION PLAN SCHEDULE (SCHEDULE
                                          G).

Version                                   means major software upgrades that
                                          generally add function to existing
                                          Software and may be provided by the
                                          Software vendor at a fee over and
                                          above the standard software
                                          maintenance costs.

Virus or Viruses                          means computer instructions (i) that
                                          without functional purpose adversely
                                          affect the operation, security or
                                          integrity of a computing,
                                          telecommunications or other digital
                                          operating or processing system or
                                          environment including without
                                          limitation, other programs, data,
                                          computer libraries and computer and
                                          communications equipment, by altering,
                                          destroying, disrupting or inhibiting
                                          such operation, security or integrity;
                                          (ii) that without functional purpose,
                                          self-replicate written manual
                                          intervention; or (iii) that purport to

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                                                                         Page 10
<PAGE>
                                          perform a useful function but which
                                          actually perform either a destructive
                                          or harmful function, or perform no
                                          useful function and utilize
                                          substantial computer,
                                          telecommunications or memory
                                          resources.

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                                  SCHEDULE A

                             DESCRIPTION OF SERVICES

1     INTRODUCTION

      1.1   PROCESSES; PARTIES' RESPONSIBILITIES

      This Services Schedule (Schedule A) describes the responsibilities of
      Provider and Company in performing the listed Processes and sub-processes
      of the Services.

      The following categories of IT processes (each, a "Process") are covered
      in this Services Schedule and within the scope of Services:

            -     Information Technology Support Services

      The descriptions of processes and sub-processes in this Services Schedule
      are intended to provide a high-level allocation of responsibilities
      between Provider and Company. Various lesser-included subtasks are
      intended to be included within such Processes and sub-processes according
      to the following assumptions and principles, unless otherwise agreed or
      specified: [***]*

      Except where specifically set out in the applicable Transition Plan, from
      the Process Take-On Date, Provider shall perform each of its agreed-upon
      tasks within each Process included in the Services. The initial manner of
      Provider's performance of its assumed responsibilities shall be generally
      consistent with the manner in which Company performed such
      responsibilities prior to the applicable Process Take-On Date, provided
      that, Provider shall have control over the manner of its delivery of
      Services in accordance with Provider's standard procedures and practices,
      subject to Company's established internal service delivery obligations,
      the Service Levels, reporting requirements, and any other specifically
      agreed written requirements.

      Provider will perform all of the tasks inherent within the Services
      related to IT support of the IT environment within which the human
      resources processes operate as described in this Services Schedule. Those
      responsibilities retained by Company as identified in this Schedule shall
      be the responsibility of Company, and any failure by Company to perform
      such responsibilities shall not constitute a breach of this Agreement by
      Company; provided, however, that this sentence shall not relieve Company
      of its obligation to perform any covenants expressly set forth in the
      Agreement, including without limitation, Section 2.10 of the Agreement.
      The Parties acknowledge that as an inherent part of the Services Provider
      may create tools for its use in performing the Services.

      Provider shall be responsible for the services of all third parties
      engaged as subcontractors by Provider.

      Provider shall perform all services in this Schedule in accordance with
      the existing process flows and timelines maintained by Company prior to
      the Process Take-On Date as provided by Company to Provider prior to the
      Effective Date, without limiting Provider's right to control the manner in
      which the Services are delivered. Notwithstanding anything to the
      contrary, Provider shall have discretion to manage and modify its
      processes and internal timelines over time in any reasonable manner which
      maintains compliance with the specific requirements of this Schedule.

1.2   [***]*

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      1.3   LEGEND

      The following legend applies for all tables in this Services Schedule
      (Schedule A).

<TABLE>
<CAPTION>
                  -------------------------------------------

                                  Table Legend

                  -------------------------------------------
<S>                               <C>
                     X            Performs Task or Process

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

                     A                    Approves

                  -------------------------------------------
</TABLE>

2     INFORMATION TECHNOLOGY SUPPORT SERVICES

            The Information Technology Support Services Process refers to the
            applications support activities (excluding software development and
            enhancement activities) performed to support the information
            technology environment within which Company's human resources
            processes operate and which support the Company's human resources
            processes. This section specifically refers to the hardware,
            software and networks that support the Processes and sub-processes
            addressed elsewhere within this Schedule A.

            [***]*

            "Company IT Domain" means the data processing infrastructure,
            servers, data communications equipment, local area networks, desktop
            equipment and support, wide area network facilities operated and
            maintained by Company at Company facilities and/or operated and
            maintained by third parties under Third Party Contracts managed by
            Company at Company facilities. This includes the infrastructure,
            equipment and communications facilities for the Memphis ESC operated
            by Provider that supports Company.

            "DRP" means disaster recovery plan.

            "Provider IT Domain" means the data processing infrastructure,
            servers, data communications equipment, local area networks, desktop
            equipment and support and wide area network facilities, operated and
            maintained by Provider at Provider facilities and/or operated and
            maintained by third parties under Third Party Contracts administered
            by Provider at Provider facilities.

            The following table shows the high level division of
            responsibilities for Company IT Domain and Provider IT Domain
            responsibilities, based on the application and/or support type.

            [***]*

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            The language used in developing, operating and supporting all
            applications, documentation and web content under Provider
            responsibility shall be English.

            The table below specifies the IT support responsibilities for
            Company and Provider.

            [***]*

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* Confidential information has been omitted

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                                   SCHEDULE B
                                 SERVICE LEVELS

1     INTRODUCTION

      This Schedule describes the Service Levels that will be measured to
      establish certain performance requirements for Services to be performed
      under the Agreement. This Schedule also describes how such Service Levels
      shall be established.

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

      1.1   Key Performance Indicators (KPIs) - A limited number of significant
            Service Levels that will carry a fee credit for non-compliance
            according to the Fees at Risk associated with the applicable KPI;
            and

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

      The process for initially establishing these Service Levels is described
      in Section 3 of this Schedule.

2     PRINCIPLES GOVERNING SERVICE LEVELS

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

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

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

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

      2.5   Provisional KPIs shall not be subject to Service Credits.

      2.6   Should Company fail to meet its Company IT Service Levels (as set
            forth in Section 3.3.1 of this Schedule), Provider's failure to meet
            Service Levels (including KPIs) shall be excused to the extent such
            failure is caused by any failure by Company to meet the Company IT
            Service Levels. Any additional costs reasonably incurred by Provider
            in order to provide the Services, as a result of Company's failure
            to meet its Company IT Service Levels, shall be handled as agreed
            through the Change Control Procedures.

3     PROCESS

      Prior to the Effective Date, the Parties have agreed on the KPI Service
      Level measurements, process weightings and certain Service Level metrics
      that Provider will meet or exceed, as well as a representative list of RSL
      measurements identified below. For the Service Level metrics that have not
      been agreed upon as of the Agreement Date, such Service Level metrics
      shall be determined following the Agreement Date in accordance with the
      process identified below.

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3.1   KPIs

      3.1.1 Except as otherwise provided in Section 3.1.2 below, the KPI's shall
            have the values set forth in Table 3.1.3. (Table 3.1.3 also
            indicates certain "Target Metrics" for each process. [***]*

      3.1.2 [***]*

      3.1.3 KPI Process Weightings

            Company shall assign each KPI a weighting of no less than [***]* The
            total KPI process weighting for all KPI Service Levels shall [***]*

      3.1.4 Key Performance Indicator Table

            [***]*

      3.1.5 [***]*

3.2   RSLs

      3.2.1 With respect to RSL Service Levels that are set forth below,
            Provider shall implement and report on such RSL Service Levels as of
            the Process Effective Date.

      3.2.2 Reporting Service Level Table

            [***]*

Any requests for additional RSLs following the Process Take-On Date shall be
subject to the Change Control Procedures.

3.3   Company IT Service Levels

Table 3.3.1 outlines IT RSLs that Company shall be responsible for meeting
[***]* The RSLs below shall be determined and reported in the same manner as the
RSLs identified above.

      3.3.1 Company IT Service Levels Table

            [***]*

4     ANNUAL SERVICE LEVEL REVIEW

      The steering committee shall: (1) review the Service Levels metrics and
      targets annually, and (2) use the Change Control Procedures with respect
      to any Service Levels that require periodic adjustment pursuant to this
      Agreement or that are no longer appropriate because of an increase,
      decrease or change to the Services. In addition, either Party may, at any
      time pursuant to the Change Control Process, initiate negotiations to
      review and, upon agreement, adjust any Service Level which such Party in
      good faith believes is

----------
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      inappropriate. [***]*

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

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                                   SCHEDULE C

                                CHARGES SCHEDULE

1.    INTRODUCTION

This Schedule describes the methodology for determining the charges to be paid
by Company to Provider for the performance by Provider of its obligations under
the Agreement as well as the associated processes for invoicing Company for such
charges. In addition, this Schedule identifies charges to be paid by Provider
for other services provided by Company in support of the Services.

2.    DEFINITIONS

Unless otherwise specified, any capitalized terms that are not defined in this
Schedule shall have the meanings assigned to them in the Agreement. The
following terms shall have the meanings set out below:

"ALLOCATED COSTS" shall have the meaning set forth in Section 4.1.2 of this
Services Schedule.

"BASELINE CHARGES" means the base charges described in Table 4.1.3 of this
Charges Schedule [***]* by Provider to Company and subject to verification and
adjustment as set forth herein. [***]*

"CONTRACT YEAR" means each 12-month calendar year period during the Term, where
"Contract Year 1" or "Contract Year One" means the 12-month period from January
1, 2002 through December 31, 2002 and so forth.

"COMPANY BASELINE SPEND" means [***]*

"CORE MAINTENANCE" means the Services outlined in the Services Schedule
(Schedule A), under the sub-section entitled "Application Systems Management for
Provider Managed Applications" in Section 8, excluding activities dealing with
Minor Enhancements and Major Enhancements.

"FEES AT RISK" means the maximum amount of Service Credits that are available to
be paid or credited to Company.

"FULL-TIME EQUIVALENT" or "FTE" means 1,800 hours per work year.

"INITIAL SERVICES PERIOD" shall mean the period beginning on the Process Take-On
Date and ending on [***]*

"IT" means information technology and information services.

"IT STAFFING PLAN" means that certain plan dated [***]*

"MAJOR ENHANCEMENT" means application changes with an estimated effort of [***]*

"MINOR ENHANCEMENT" means application changes with an estimated effort of [***]*

"PROCESS TAKE-ON DATE" has the meaning set forth in Section 5.1 of the
Agreement.

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[***]*

"ROOT CAUSE EVENT" means a one-time, discrete, non-continuing event that is the
sole cause of a KPI failure.

"SERVICE CREDITS" means an amount to be credited or paid to Company, at the
Company's option, in the event of an unexcused failure by Provider to achieve a
Key Performance Indicator as specified in the Service Levels Schedule (Schedule
B).

"SYSTEMS SERVICES" means those services provided by Provider to Company pursuant
to the Systems Services Agreement entered into by the Parties as of even date
herewith, as may be amended by the Parties from time to time.

3.    VERIFICATION OF COMPANY BASELINE SPEND

      During the period of [***]* following the Process Take-On Date, the
Parties shall verify Company Baseline Spend. This process shall involve, among
other things: (i) validation of rates and associated charges from Company, (ii)
confirmation of the resources engaged in the performance of the Services, and
(iii) confirmation that the [***]* are accurately reflected in the Baseline
Spend. Upon completion of the verification of the Company Baseline Spend and
agreement by the Parties upon the results thereof, the Company Relationship
Manager and the Provider Relationship Manager shall mutually agree on the impact
on this Charges Schedule and on any other Schedule to the Agreement, with all
changes documented through the Change Control Procedures. Adjustments determined
from verification of the Company Baseline Spend, if any, shall be retroactive to
the commencement of Contract Year One.

3.2   DISPUTES REGARDING VERIFICATION

      Any disputes concerning verification of the Company Baseline Spend shall
be handled in accordance with the Dispute Resolution Process set forth in the
Dispute Resolution Schedule.

4.    CHARGING METHODOLOGY

4.1   MONTHLY BASELINE CHARGES; RECURRING THIRD PARTY COSTS; ALLOCATED COSTS

      4.1.1 MONTHLY BASELINE CHARGES AND RECURRING THIRD PARTY COSTS

      Monthly Baseline Charges shall commence on the Process Take-On Date.

      Provider's [***]* Baseline Charges shall be invoiced [***]* in accordance
      with Section 6 of this Schedule as follows [***]*:

      oBaseline Charges taking into account the discount set forth in Table
      4.1.3 for each Contract Year, in each case [***]*

      In addition, Provider will invoice Company in advance for Company's
      payment obligations as outlined in Section 5.1. [***]* Charges are
      allocated as set forth in Section 4.1.3.

      4.1.2 ALLOCATED COSTS

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      Prior to the Effective Date, the Employee Services Center received
      non-labor related systems and other support services from various
      corporate groups. As set forth in the Services Schedule (Schedule A),
      following the Process Take-On Date Company shall initially be responsible
      for providing these systems and services in support of the Employee
      Service Center. [***]* Company shall provide Provider with an estimate of
      projected annual Allocated Costs prior to the beginning of each calendar
      year, and the Parties agree to discuss and review these allocations prior
      to implementation. Any issues arising out of the allocation review shall
      be handled through the Dispute Resolution Process.

      Allocated Costs shall be charged and invoiced between the Parties as set
      forth in Section 6.6 below.

      [***]*

      4.1.3 ALLOCATION OF CHARGES

      Baseline Charges and Allocated Costs are allocated as follows:

            [***]*

      * Allocated costs to be provided by Company as outlined in Section 4.1.2.
      Entries for Allocated Costs are subject to revision after the Effective
      Date, with any increases or decreases treated as a pass-through.

      **To be completed during transition.

      References to a "Year" means a Contract Year.

      4.1.4 ASSUMPTIONS

            The Baseline Charges outlined in Table 4.1.3 include the following
            assumptions:

      1.    The Baseline Charges for Year 1 include [***]* of annualized charges
            related to IT legacy system support that will be provided and
            charged for during the Initial Services Period. These charges are
            outlined on the IT Staffing Plan.

      2.    The Baseline Charges for Year 1 include [***]* of annualized charges
            related to Viking support that will be provided and charged for
            during the Initial Services Period. These charges are outlined on
            the IT Staffing Plan.

      3.    The amounts identified in items (1) and (2) above are subject to
            verification as part of the verification of the Company Baseline
            Spend pursuant to Section 3.1 of this Charges Schedule.

      4.    [***]*

      4.1.5 IT SERVICES POOL

      [***]* at which time the Parties will agree through the Change Control
      Procedures on a revised fee structure based on business outputs as
      outlined below.

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      Company and Provider will evaluate the Services work processes/workloads
      in order to propose a new delivery model composed of a "discretionary
      pool" for Services based on business outputs. The Parties will construct
      the fee structure applicable to the Services [***]*

      Provider will implement certain practices, procedures and data processes
      to capture IT support services metrics during the [***]* following the
      Process Take-On Date. Based on an analysis of the gathered metrics,
      Company and Provider will agree on a work-based output approach, and will
      implement a methodology to deliver and manage the new approach. Any impact
      on the Service Levels, the new fee structure, and the requirements for
      implementing the proposed changes, will be handled through the Change
      Control Procedures. [***]*

      Major Enhancements will be dealt with through the Change Control Process
      as outlined in the Change Control Schedule or through reprioritization of
      the Discretionary Pool resources.

      4.1.6 NEW PROJECTS

      Fees, including consulting fees, resource fees, out-of pocket costs, and
      other costs required to complete or support any new project or for New
      Services may be based upon Service Provider's then-current daily
      commercial rates adjusted [***]* project pricing, or other bases, and will
      be determined in accordance with Change Control Procedures. Fees for each
      project will be negotiated and agreed to by the parties on a case-by-case
      basis.

      4.1.7 NON-SUPPORTED SOFTWARE

      Company is responsible for paying for support and maintenance for certain
      third party software products designated as [***]* under the Software
      Rights Schedule (Schedule F). Company may, in its sole discretion, elect
      not to maintain support and maintenance on any third party software
      product for which it is responsible. In the event that Company elects not
      to maintain such support and maintenance, (1) the impact to the Services
      and/or Charges, if any, shall be determined through the Change Control
      Procedures; (2) Provider may engage the third party software vendor to
      provide support and/or maintenance [***]* as reasonably required in order
      for Provider to perform the Services, and Provider may invoice Company for
      the associated third party charges incurred as a result of such
      engagement; and [***]*

      In the event that Company fails to maintain its [***]* at a version level
      supported by [***]*, the Parties shall determine appropriate changes to
      the Charges, if any, through the Change Control Procedures.

      4.1.8 CHANGES TO SERVICE LEVELS

      Subject to the requirements of Section 2.4(a) of the Agreement, if Company
      requests the support of Service Levels solely for Company's benefit that
      are higher than Service Levels supported as of the Process Take-On Date,
      or agreed to be supported during the Term, and Provider agrees to meet
      such higher service levels, then the equipment, tools and resources
      required to support such enhanced Service Levels, and any associated fees
      and costs must be approved through Change Control Procedures.

      4.1.9 BASELINE CHARGES PRORATION AT PROCESS TAKE-ON DATE

      [***]* Baseline Charges for the [***]* of the Process Take-On Date shall
      reflect a pro rata amount based on [***]* from and after such Process
      Take-On Date. Provider shall submit the invoice for such pro rata amount
      on [***]* in which the Process Take-On Date is scheduled to occur;
      provided, however, in the event the actual Process Take-On Date with
      respect to any Process is different than the scheduled Process

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      Take-On Date, Provider shall make an appropriate adjustment to the invoice
      submitted to Company for the following [***]*

4.2   FEES AT RISK

      In the event of [***]* Provider shall be liable for Service Credits as
      follows:

      1.    Subject to Section 4.3.1(2) below, any payment due based on Service
            Credits will be reported and calculated [***]*

      2.    The aggregate Fees at Risk shall be [***]*

      3.    [***]*

      4.    [***]*

5.    CONSENTS AND FEES ASSOCIATED WITH IT AGREEMENTS

      Company shall, with Provider's assistance as reasonably requested by
Company, use commercially reasonable efforts to obtain for Provider the right to
use certain Software as designated on the Software Rights Schedule. [***]*

6.    INVOICING

      6.1   BASELINE CHARGES

      Provider shall deliver invoices for Baseline Charges on a monthly basis,
      in advance, [***]*

      6.2   FEES AT RISK; SERVICE CREDITS UNDER THIRD PARTY CONTRACTS

      Service Credits from Provider and credits for service under Third Party
Contracts shall be credited to Company in accordance with Section 4.3 of this
Charges Schedule.

      6.3   ALLOCATED COSTS

      While Company is providing systems and services in support of the Employee
Service Center as described in Section 4.1.2, Company will invoice Provider for
Allocated Costs incurred by the Employee Service Center after such costs have
been allocated to the Employee Services Center and charged by Company (as
described in Section 4.1.2 above). Provider shall then invoice Company on its
next [***]* invoice for such Allocated Costs, without markup. Provider shall
also issue Company a credit on the same [***]* invoice, in the amount of the
charge for such Allocated Costs. Provider's credit to Company shall be
considered full satisfaction of the associated Allocated Cost charge invoiced
from Company to Provider (such that the charge and charge-back of Allocated
Costs is a cash-less transaction between the parties). In no event shall
Provider invoice Company for any Allocated Costs until after such time as
Company has invoiced such Allocated Costs to Provider. As Provider replaces
systems and services

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provided by Company in support of the Employee Service Center, Provider's
charges to Company therefor will be handled as described in the third paragraph
of Section 4.1.2.

6.4   INVOICING OF DAMAGES

      Neither Party shall be permitted to invoice the other for damages or
increased costs incurred as a result of the other Party's breach of this
Agreement, unless and until Company and Provider have agreed to such charges
through the Change Control Procedures.

6.5   CREDIT FOR SERVICES

      [***]*

7.    TERMINATION

7.1   TERMINATION FOR CONVENIENCE

      The parties acknowledge that Provider will incur substantial set-up and
other direct installation costs to implement the Agreement. Therefore, as
described in Section 12.5 of the Agreement, in the event of termination for
convenience, in order to reimburse Provider for such expenses and to provide
further compensation to Provider, Company will pay Provider the full amount set
forth in Table 7.1 for the month within which the effective date of the
termination occurs. Such payment will be in full satisfaction of all set-up and
other direct installation costs, and all claims by Provider for termination of
the Agreement. Company will not be obligated to pay Charges to Provider for
periods of time following termination unless such Charges are associated with
work performed by Provider following the termination pursuant to written
agreement with Company. [***]*

                                    TABLE 7.1

      [***]*

7.2   [***]*

                                    TABLE 7.2

                        TERMINATION FOR CHANGE OF CONTROL

      [***]*

7.3   THIRD PARTY VENDORS

      In addition to the fees in Table 7.1 above, upon any termination or
      expiration of the Agreement, [***]*

8.    COST OF LIVING ADJUSTMENT

      Beginning [***]* all fees and charges of Provider for direct labor costs
will be subject to increase to reflect increases, if applicable, in the [***]*
If a transition is made from the [***]* to a successor index, then for the year
in which the transition takes place, the parties will use the applicable
translation or conversion methodology published

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by the [***]* and in the absence thereof the Parties will base adjustments for
the year in which the transition takes place upon a comparison of the successor
index with such index for the prior year. Percentage increases in the [***]* for
any adjustment period will be reflected by commensurate percentage increases in
Provider's fees and charges hereunder [***]* for any adjustment period, and any
increases in the [***]* for any adjustment period will result in an additional
percentage increase in Provider's fees and charges hereunder equal to [***]*

9.    RETAINED COSTS; ASSUMPTIONS

      9.1   RETAINED COSTS

      The Company shall retain responsibility for the following costs associated
with the Employee Service Center:

      [***]*

      9.2 ASSUMPTIONS

      This Schedule has been prepared based on the assumptions set forth in
Section 4.1.4 of this Charges Schedule. In the event of any material deviation
from the listed assumptions, charges will be equitably adjusted, if and to the
extent necessary, to reflect the net change in the cost of performing the
relevant Services in accordance with Change Control Procedures.

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                                   SCHEDULE D
                               AFFECTED EMPLOYEES

1     INTRODUCTION

      This schedule sets forth the employees to be transferred from Company to
      Provider in accordance with Schedule J.

2     TABLE OF AFFECTED EMPLOYEES

      [***]*

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                                   SCHEDULE E
                             KEY PERSONNEL SCHEDULE

1.0   INTRODUCTION

This Schedule identifies Provider's personnel filling key positions, as
contemplated by Section 6.2 of the Agreement.

2.0   KEY PERSONNEL

As of the Process Take-On Date, Company has designated the following key
personnel:

      1.    The Provider Relationship Manager; and

      2.    The Provider Center Manager (as defined in the Account Governance
            Schedule).

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                                   SCHEDULE F
                            SOFTWARE RIGHTS SCHEDULE

The Parties have identified on this Schedule F (Software Rights Schedule) the
Software required for Provider to perform the Services as of the Process Take-On
Date. Each Party acknowledges that, as of the Effective Date, this Schedule
lists certain Software used by Company to perform services prior to the
Effective Date. After the Effective Date, this Software Rights Schedule shall be
updated by Provider from time to time to incorporate any Software not listed on
this Software Rights Schedule that is required for Provider to perform the
Services on or after the Process Take-On Date.

Consistent with Section 3.1(a) of the Agreement, the Software is categorized
herein as follows:

[***]*

With respect to Software designated as [***]* the Party granted a right to use
hereunder shall comply at all times with the terms and conditions of the then
existing license agreement between the other Party and the applicable third
party vendor (each a "Retained Agreement") and any and all agreements
(including, but not limited to, consent letters, access/right to use agreements,
confidentiality agreements, etc.) entered into by Company and/or Provider and a
third party vendor pursuant to which the applicable rights to use are granted
The right to use grantee shall be responsible for all damages incurred by the
right to use grantor arising out of the grantee's non-compliance with any and
all Retained Agreements and Right to Use Agreements. In addition, the grantee
shall comply at all times with the grantor's Software policies and procedures
with respect to Software owned or licensed by the grantor. All Company-owned or
licensed Software used by Provider shall be subject to Section 3.2 of the
Agreement, including, but not limited to, any time limitations on Provider's
rights to access and use such Software. All Provider-owned or licensed Software
shall be subject to equivalent restrictions applicable to Company's access and
use.

[***]*

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* Confidential information has been omitted.

CP = Company Proprietary, R = Retained, RU = Right to Use, PP = Provider,
PTP = Provider Third Party

                                       1

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                                   SCHEDULE G

                                 TRANSITION PLAN

1     INTRODUCTION

      This Schedule sets forth the Transition approach and initial Transition
      Plan for conducting the transfer of services and facilities from Company
      to Provider and the treatment of Affected Employees. Subsequent
      transitions will follow the transition approach as defined in Schedule G.
      The specific deliverables and milestones for the transition approach,
      subject to ongoing review and revision by both parties, shall be completed
      by [***]*

2     TRANSITION PLANNING PRINCIPLES

      2.1   Transition is a shared responsibility. The Provider is responsible
            for management of the overall transition program. Each Party has
            responsibility for ensuring there is full participation in data
            gathering and requirements definition. Furthermore, each Party has
            responsibility to ensure the commitment and involvement of its team.

      2.2   The Transition Plan shall be primarily determined based on the
            in-scope Processes, people, and certain dependencies for
            transferring Company facilities.

3     TRANSITION APPROACH

      The general approach for all Processes is to transfer the current Process
      in place today from Company to Provider "as is". Once under Provider
      management, the Processes, where possible or practical, will be improved
      through a combination of changes to the procedures, underlying
      technologies, organization design, and deployment of employees. Other
      changes may be identified during the Transition Period, and will be
      undertaken in a manner consistent with Change Control Schedule.

      The Transition shall consist of a number of Workstreams:

      3.1   [***]*

      The establishment of a service management infrastructure within the
      delivery organization will provide appropriate activity and lines of
      communication between Company and Provider to manage the delivery of
      Services according to Service Levels and contractual requirements.

      Company and Provider shall agree to the overall approach and schedule for
      the Transition, the detailed work plan to complete the work, and the
      staffing levels and commitments from both organizations. The project
      reporting and governance shall also be agreed upon and put in place.

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4     TRANSITION ACTIVITIES

      [***]*

5     HIGH-LEVEL TRANSITION SCHEDULE

      Attached below is a High-level Transition Schedule outlining various Key
      Activities. Each Party agrees to use its commercially reasonable efforts
      to perform the tasks for which it is responsible in the Timeline for Key
      Activities by the date set forth for completing such activity.

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                                   SCHEDULE H

                           IN-FLIGHT PROJECTS SCHEDULE

1.0   INTRODUCTION

This In-Flight Projects Schedule sets forth certain projects that are either
in-process or anticipated by the Parties, as contemplated by Section 2.12 of the
Agreement.

2.0   PROJECTS

      [***]*

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                                   SCHEDULE J

                         AFFECTED EMPLOYEE ARRANGEMENTS

1.0 DEFINITIONS

For the purposes of this Schedule J:

"DESIGNATED EMPLOYEE" means any employee of Company listed on Schedule D,
including those employees on any approved leave under Company's policies.

"AFFECTED EMPLOYEE" means a Designated Employee who accepts Provider's offer of
employment and becomes an employee of Provider.

"SEPARATION DATE" of a Designated Employee means the date such Designated
Employee's employment with Company terminates.

"EMPLOYMENT DATE" means the date an Affected Employee commences employment with
Provider.

2.0 OFFER OF EMPLOYMENT; EMPLOYMENT TERMS

2.1 Provider shall offer employment to all Designated Employees prior to the
Separation Date, which will be mutually agreed by Company and Provider. Except
as specifically set forth herein, (i) each Affected Employee shall be employed
pursuant to Provider's standard employment terms, policies and programs,
including at-will employment; (ii) Provider will have no obligations to Affected
Employees except as required pursuant to Provider's standard employment terms,
policies and programs and applicable laws and regulations; (iii) Provider is not
required to continue any employment terms, policies, or programs of Company;
(iv) no Affected Employee will be entitled to any designated period of
employment; and (v) Provider will have no obligations to any Designated Employee
who does not become an Affected Employee.

2.2 [***]*

2.3 [***]*

2.4 [***]* Provider is an at-will employer. The terms and conditions of
employment may change from time to time at the Provider's sole discretion. An
Affected Employee's employment can be terminated either by the Affected Employee
or the Provider at any time with or without cause or advance notice.

2.5 [***]*

2.6 [***]*

      2.6.1 [***]*

      2.6.2 Provider's annual review cycle for Affected Employees will commence
      on [***]* with the first Provider review being initiated in [***]*

      2.6.3 [***]*

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2.7 Company is responsible for timely payment, as required by law, of all wages
and salaries and other compensation payable with respect to service provided by
a Designated Employee on or prior to his or her Separation Date, and all
obligations to Designated Employees arising out of and relating to their
employment by Company, termination of that employment, and their participation
in all of Company's employee benefit plans and programs. [***]*

2.8 As of an Affected Employee's Employment Date, the Affected Employee will
begin accruing vacation according to [***]*

      2.8.1 Company will pay out each Designated Employee for all unused
      vacation outstanding at his or her Separation Date directly to Designated
      Employee in a timely manner.

2.9 [***]*

2.10[***]*

2.11 The Separation Date of a Designated Employee who accepts employment with
Provider, but who is absent from work due to a Company-approved leave of absence
on the Designated Employee's original proposed Separation Date, will be the date
the Designated Employee is eligible to return to work. If that date is within
[***]* of the original proposed Separation Date, then the Employment Date of
such Designated Employee will occur immediately after such date..

      2.11.1 If a Designated Employee is absent from work for more than [***]*
      from his or her original proposed Separation Date, the Designated Employee
      will not become a Provider Employee, unless mutually agreed upon by
      Company and Provider.

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                                   SCHEDULE K

                             CHANGE CONTROL SCHEDULE

1.0   INTRODUCTION

1.1   This Change Control Schedule describes the process (the "Change Control
      Process") to be followed by Company and Provider when either Party wishes
      to make a change to the Services, software, hardware, systems, activities,
      processes, provisions, operations or any other terms and conditions under
      the Agreement (each a "Change"). The Parties may by joint written
      agreement amend or waive any part of the Change Control Process including,
      but not limited to, where the relevant Parties agree that shorter or
      longer timeframes are more appropriate or as may be agreed to by the
      Parties in the Technology and Business Process Procedures, provided that
      any Changes made to the Agreement are recorded in a Change Proposal (as
      such term is defined in Section 2.3(b)) and such Change Proposal is
      allocated a unique number by Provider and is signed by duly authorized
      representatives of Company and Provider.

1.2   The purposes and objectives of the Change Control Process are as follows:

      (a)   to review each request for a Change (a "Change Request") to
            determine whether such Change is appropriate;
      (b)   to determine whether a Change is within the scope of the Services or
            constitutes a New Service;
      (c)   to prepare a more detailed proposal to implement a Change Request
            (such proposal, a "Change Proposal")
      (c)   to prioritize all Change Requests and Change Proposals;
      (d)   to minimize the risk of exceeding both time and cost estimates
            associated with the requested Change by identifying, documenting,
            quantifying, controlling, managing and communicating: (i) Change
            Requests, (ii) the preparation of Change Proposals), and (iii) their
            disposition; and
      (e)   to identify the different roles, responsibilities and actions that
            shall be assumed and taken by the Parties to define and implement
            the Changes to the Services and to the Agreement.

1.3   Each Party shall be responsible for all costs and expenses incurred by its
      employees, agents and subcontractors with respect to its participation in,
      and responsibilities and obligations under, the Change Control Process,
      unless expressly agreed otherwise in writing by both Parties.

2.0   CHANGE CONTROL PROCESS

2.1   Either Provider or Company may initiate a Change Request by delivering to
      the other's Relationship Manager or his/her nominated representative a
      writing that describes the Change and sets forth the reasons for it.
      Provider shall assign a unique number to any such request and shall
      register the Change Request in the Change Request Log as described in
      Section 7.1. Each Change Proposal that may be prepared for a Change
      Request shall be tracked by reference to the Change Request to which it
      relates.

2.2   Each Party's respective Relationship Manager or his/her nominated
      representatives shall be responsible for reviewing and considering any
      Change Request, and shall approve it for further investigation, if deemed
      necessary. If the Parties agree that the Change Request requires further
      investigation, the Company and Provider Relationship Managers shall
      authorize such investigation, which shall be performed as required by
      Provider and/or Company. In accordance with Section 7.2, the Relationship
      Managers shall be responsible for keeping up to date the status of each
      Change Request in the Change Request Log as the status of the Change
      Request changes through the Change Control Process.

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2.3   For each Change Request that the Parties have approved for further
      investigation, regardless of which Party has proposed or investigated the
      Change, Provider shall prepare and submit to Company within [***]* (or as
      otherwise agreed), with Company's full cooperation and provision of any
      information reasonably requested by Provider, a preliminary report
      containing the following information and analysis:

      (a)   Such preliminary report shall contain:

            (i)   the estimated costs associated with the Change;

            (ii)  the timeframe for implementing the Change (including any
                  timing constraints);

            (iii) the preliminary technical or business case for making the
                  Change, as well as any changes or additions to policies,
                  standards and procedures in accordance with which the Change
                  is to be implemented;

            (iv)  an initial analysis of the potential risks (if any) to Company
                  or Provider if the Change is not implemented;

            (v)   an estimate of the costs and expenses associated with
                  preparing a comprehensive Change Proposal containing the
                  information and analysis set forth in Section 2.3(b) below
                  (the "Estimate").

            Provider shall bear the costs of preparing the preliminary report
            and Estimate as set forth in this Section 2.3(a), and shall provide
            such report as part of the Services.

      (b)   Company and Provider shall review the preliminary report and Company
            shall, within [***]* after deliver of such preliminary report,
            either (1) instruct Provider to prepare a comprehensive Change
            Proposal as set forth in this Section 2.3(b), or (2) notify the
            Provider that it does not wish to proceed with the Change. Where
            Company has instructed Provider to prepare a comprehensive Change
            Proposal, [***]* (or as otherwise agreed) after receiving such
            instruction, Provider shall prepare a Change Proposal describing the
            impact of the Change on the following elements of the Agreement, to
            the extent relevant:

            (iii) [***]*

2.4   Once submitted by Provider, Company shall review the Change Proposal and
      as soon as reasonably practicable, and in any event not more than [***]*
      (or as otherwise agreed) after receipt of the Change Proposal, either:

      (a)   the Parties may approve the Change Proposal in which case the Change
            Proposal shall be signed by the Relationship Managers and the Change
            incorporated in accordance with Section 3.0 below;

      (b)   Company may notify Provider that it does not wish to proceed with
            the Change, in which case no further action shall be taken in
            respect of the Change Proposal; provided, however, that Provider
            shall be entitled to charge Company for its reasonable costs
            associated with preparing the Change Proposal, but not to exceed the
            Estimate (and not

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            including any costs incurred in preparing the preliminary report or
            Estimate described in Section 2.3(a) above); or

      (c)   either Party may request that it and the other Party meet to discuss
            the Change Proposal (such meeting to be referred to as the "Change
            Proposal Meeting").

2.5   At the Change Proposal Meeting, the Parties shall use reasonable endeavors
      to agree to either:

      (a)   take no further action in respect of the proposed Change, in which
            case no further action shall be taken in respect of the Change
            Proposal;

      (b)   acquire further information before deciding whether to proceed with
            the Change;

      (c)   amend some or all of the contents of the Change Proposal, which
            Provider will incorporate into a revised version of the Change
            Proposal; or

      (d)   proceed with the Change as detailed in the Change Proposal in which
            case the Change Proposal shall be signed and the Change incorporated
            in accordance with Section 3.0.

2.6   In the event that the Parties agree to proceed in accordance with one of
      the options detailed in Section 2.5(b) or 2.5(c) above, then the Parties
      shall gather any necessary information and/or Provider shall prepare a
      revised version of the relevant Change Proposal, upon which the Parties
      shall decide whether to proceed in accordance with Section 2.5(a)-(d)
      above. The Parties shall continue to go through the process detailed above
      until such time as a final resolution is made by the Parties. The Parties
      shall act in good faith at all times during such process.

2.7   If the Parties' Relationship Managers agree to a Change prior to any
      investigation conducted by either Party, Provider shall in any event
      prepare a Change Proposal in accordance with Section 2.3 and submit such
      Change Proposal for review and approval in accordance with Section 2.4.

3.0   EFFECTIVENESS OF A CHANGE

3.1   Upon the signature of a Change Proposal by both Provider's and Company's
      Relationship Managers in respect of a Change, the contents of such Change
      Proposal shall be deemed to be agreed and incorporated into the Agreement
      on the date of signature or as the Parties may otherwise agree. No part of
      the discussions or interchanges between the Parties shall obligate the
      Parties to approve any Change or shall constitute an amendment or waiver
      of the Agreement unless and until reflected in a Change Proposal and
      adopted in accordance with this Change Control Schedule.

3.2   Neither Party shall have any obligation to commence or comply with any
      Change until such time as the relevant Parties have signed the appropriate
      Change Proposal.

4.0   CHANGE MANAGEMENT REPORTING REQUIREMENTS

4.1   Provider shall provide Company (as part of Provider's reporting
      requirements under the Reports Schedule) a summary specifying the status
      of all pending Change Requests and Change Proposals.

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5.0   FAILURE TO AGREE

5.1   In the event that the Party requesting a Change believes that the
      requested Change is required or necessary, the requesting Party shall
      inform the other Party in writing of such nature of the proposed Change.
      In the event that the other Party does not agree to implement the Change,
      the requesting Party shall be entitled to consider the other Party's
      failure to agree to implement the Change as a Dispute, and the requesting
      Party may escalate such Dispute for resolution in accordance with the
      Dispute Resolution Schedule and the Agreement.

6.0   EMERGENCY CHANGE PROCESS; COMPULSORY CHANGES

6.1   In the event that either Party requires a Change in order to respond to an
      emergency and such Change would, in the reasonable opinion of the
      requesting Party, if it was not implemented until the Change Control
      Process had been followed, have a detrimental effect on the requesting
      Party's ability to meet its obligations pursuant to this Agreement, the
      requesting Party shall make all reasonable efforts to contact the other
      Party's Relationship Manager, and if the requesting Party is unable to
      contact the other Party's Relationship Manager after reasonable efforts,
      the requesting Party shall, where appropriate and practical, make all
      reasonable efforts to contact the other Party's designated member of the
      Executive Steering Committee. If the requesting Party is unable to contact
      either the other Party's Relationship Manager or the other Party's
      designated Executive Steering Committee member, the requesting Party may
      make temporary Changes to the Services without the prior consent of the
      other Party. The requesting Party shall notify the other Party as soon as
      practicable of such Change and shall, as soon as reasonably practicable
      document and report on such Changes to the other Party. Any permanent
      Change as a result shall be agreed in accordance with the Change Control
      Process.

6.2   Notwithstanding the Change consideration and implementation process
      outlined in Sections 2 and 3 of this Change Control Schedule, if a Change
      requested by Company is a Compulsory Change (as defined hereafter),
      Provider shall immediately begin implementing as appropriate the Change
      upon request by Company. Provider shall also prepare and deliver to
      Company a Change Proposal related to the Compulsory Change on an expedited
      basis, where appropriate, and the Parties shall work together in good
      faith to determine the impact on the Agreement (including without
      limitation, any impact on the Charges) as a result of implementing the
      Compulsory Change. If the Parties are unable to agree on the impact on the
      Agreement within [***]* after Company has received the Change Proposal
      from Provider, either Party may consider such failure to agree to be a
      Dispute, and may escalate such Dispute for resolution in accordance with
      the Dispute Resolution Schedule and the Agreement. A "Compulsory Change"
      shall be any Change [***]*

7.0   CHANGE REQUEST LOG

7.1   Each entry made in the Change Request Log shall consist of the following
      fields:

      (a)   serial number of the Change Request;
      (b)   name of the originating party;
      (c)   a brief description of the Change;
      (d)   the current status of the Change; and
      (e)   the date of registration of the Change Request in the Change Request
            Log.

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7.2   The status of the Change Request at any stage in the Change Control
      Process shall be one of the following:

      (a)   raised (i.e., that the Change Request has been entered in the Change
            Request Log, but no Change Proposal has been issued);
      (b)   pending (i.e., that the Change Request has been raised and the
            Change Proposal has been issued);
      (c)   approved (i.e., awaiting implementation);
      (d)   closed (i.e., all implementation tasks have been completed); or
      (e)   rejected (i.e., closed and not implemented).

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                                   SCHEDULE L

                           ACCOUNT GOVERNANCE SCHEDULE

1.0   INTRODUCTION

1.1   This Account Governance Schedule provides a high level outline of the
      account governance process that the Parties will implement to manage the
      administration of the Agreement and the Services. The purpose of this
      schedule is to define agreed upon principles and processes that will guide
      the Parties' relationship under the Agreement.

2.0   DEFINITIONS

      "Relationship Manager" has the meaning given in Section 6.1 of the
      Agreement.

      "Provider Center Manager" has the meaning given in Section 6.3 of the
      Agreement.

      "Authorized Company Manager" shall mean interchangeably the Company
      Relationship Manager or those individuals identified in writing from time
      to time by the Company Relationship Manager to Provider as having
      authority to provide instructions or approvals to Provider on the matters
      otherwise requiring the approval of the Company Relationship Manager.

      "Operations Manager" shall mean each of the Company and Provider payroll,
      benefits and information technology representatives on the Operations
      Management Team as identified in Section 6.0 below.

3.0   ORGANIZATION; ACTIVITIES

3.1   Governance will be carried out through committees and teams consisting of
      representatives of each Party. This Schedule describes the primary roles,
      responsibilities and membership of the following committees and teams:

      a.    Executive Steering Committee

      b.    Operations Management Team

3.2   The Executive Steering Committee and the Operations Management Team will
      be formed and the initial members assigned as of the Process Take-On Date.

3.3   Unless otherwise dictated by procedures contained in this Schedule, the
      SERVICES SCHEDULE (Schedule A), or other Schedules to the Agreement, the
      internal operations, scheduling and procedures for each committee or team
      will be determined by agreement of the members of such committee or team
      in a manner consistent with the principles stated in this Schedule;
      provided that the Executive Steering Committee will have the right to
      elect to dictate any such matters as they relate to the other committees
      or teams.

3.4   In the event that Company believes that Provider has committed a series of
      non-material or persistent breaches that Company perceives in the
      aggregate to have a significant adverse impact on the Services, Company
      shall provide Provider with notice of such breaches. Upon receipt of such
      notice and subsequent discussions, Provider shall prepare and deliver to
      Company for Company's approval a plan by which Provider shall remedy such
      breaches. Once approved by Company, Provider shall execute against such
      plan until such breaches are successfully remedied.

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4.0   ROLE DESCRIPTIONS

4.1   Company and Provider shall ensure that the individuals referred to in this
      Account Governance Schedule possess the skills and perform the roles set
      out in the following role descriptions.

      4.1.1 The Company Relationship Manager

            (a)   Role

                  To be responsible for and to manage the Provider relationship.

            (b)   Reporting

                  To the Company Vice President of Human Resources

            (c)   Specific Responsibilities

                  To develop and maintain high level relationships with
                  Provider.

                  To act as the principal point of contact for Provider.

                  To attend review meetings as required by the Agreement.

                  To propose new prospective services, in conjunction with
                  Provider.

                  To be responsible for the provision of reports as required by
                  the Agreement.

                  To manage the Change Control Process on behalf of Company and
                  sign Change Orders.

                  To identify opportunities for development or improvement to
                  the Services.

                  To manage and resolve Disputes between Company and Provider.

                  To participate on the Technology and Business Process
                  Governance Committee (as identified in the Technology and
                  Process Governance Schedule).

      4.1.2 The Provider Relationship Manager

            (a)   Role

                  To be responsible for and to manage the Company account.

            (b)   Reporting

                  To the Vice President, Client Relationships

            (c)   Specific Responsibilities

                  To develop and maintain high level relationships with Company.

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                  To act as the principal point of contact for Company in
                  relation to the Services.

                  To attend review meetings as required by the Agreement.

                  To propose and develop new prospective services, in
                  conjunction with Company.

                  To manage the Change Control Process on behalf of Provider and
                  sign Change Orders.

                  To identify opportunities for development or improvement to
                  the Services.

                  To manage and resolve Disputes between Company and Provider.

                  To work closely with the Center Manager to ensure the quality
                  of all Services in conformance to the Agreement.

                  To monitor customer satisfaction.

                  To oversee startup and transition initiatives.

                  To participate on the Technology and Business Process
                  Governance Committee (as identified in the Technology and
                  Process Governance Schedule)

      4.1.3 The Provider Center Manager

            (a)   Role

                  To be responsible for all aspects of the day-to-day
                  operational delivery of the Services to the Service Level
                  Standards.

            (b)   Reporting

                  This role reports to the Director of U.S. Operations.

            (c)   Specific Responsibilities

                  To be responsible for the day-to-day operational delivery of
                  the Services.

                  To plan, allocate and monitor work undertaken in relation to
                  the Services.

                  To attend review meetings as required by the Agreement.

                  To be responsible for the provision of Reports as required by
                  the Agreement.

                  To ensure that appropriate operational and quality control
                  procedures are in use.

                  To manage and resolve customer complaints relating to
                  operational activities.

      4.1.4 The Company Operations Manager

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            (a)   Role

                  To be responsible for all aspects of the day-to-day
                  operational delivery of Company's performance related to and
                  necessary for Provider's performance of the Services and
                  Company's use of the Services.

            (b)   Reporting

                  This role reports to the Company Relationship Manager.

            (c)   Specific Responsibilities

                  To be responsible for the day-to-day operational delivery of
                  Company's performance obligations.

                  To plan, allocate and monitor work undertaken in relation to
                  the Services.

                  To attend review meetings as required by the Agreement.

                  To be responsible for the provision of Reports as required by
                  the Agreement.

                  To ensure that appropriate operational and quality control
                  procedures are in use.

                  To manage and resolve Provider complaints relating to
                  Company's operational activities.

5.0   EXECUTIVE STEERING COMMITTEE

5.1   The Executive Steering Committee shall not be involved in day-to-day
      management of the Agreement or Services. The Executive Steering Committee
      will meet periodically as it deems necessary, but at a minimum, [***]*
      until such time, if any, that the Executive Steering Committee agrees to a
      different schedule for meetings.

5.2   Company will designate one of its members on the Executive Steering
      Committee to act as the chairman of the Executive Steering Committee,
      provided that such designation and role will be for administrative
      convenience purposes only and the rights, responsibilities and authority
      of the chairman shall be the same as all other members of the Executive
      Steering Committee. Company and Provider may mutually agree to increase or
      decrease the size of the Executive Steering Committee or to change the
      qualifications of who may serve on the Executive Steering Committee. The
      Executive Steering Committee will initially be comprised of executives of
      the Parties as follows:

            [***]*

5.3   The Executive Steering Committee will be governed according to the
      following principles:

      a.    Each Party shall have a single vote;

      b.    Members may participate in meetings in person, by telephone, or by
            teleconference;

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      c.    Participation by one member from each team is sufficient for a
            quorum; and

      d.    Unanimity of the Parties is required for action to be taken.

5.4   The responsibilities of the Executive Steering Committee will include:

      a.    generally overseeing the performance of each Party's obligations
            under the Agreement;

      b.    review and authorization of high-level technical, financial and
            resource plans;

      c.    review of reports and recommendations, as reviewed and approved by
            the Operations Management Team, and, on [***]* basis, review
            recommendations and provide authorization as required for:

            (i)   Service Levels for previous [***]*

            (ii)  adjustment of Service Levels

            (iii) changes in pricing

            (iv)  Company employee satisfaction surveys and Service Level
                  results

            (v)   benchmarking results

            (vi)  summary of out-of-scope work

            (vii) implementation process of the Agreement and the achievement of
                  key milestones and deliverables

            (viii) adjustments to Services;

      d.    review of the relationship issues arising out of the Agreement;

      e.    consider the business and operating strategies of each party

      f.    resolution of concerns regarding replacement of a Relationship
            Manager or Center Manager or Operations Manager;

      g.    resolution of disputes;

      h.    final resolution of certain disputes, as noted in the Dispute
            Resolution Schedule; and

      i.    provision of advice and guidance to the Operations Management Team
            for performance improvement and submission of recommendations
            directly to Company and Provider on issues affecting the
            relationships between the Parties.

6.0   OPERATIONS MANAGEMENT TEAM

6.1   [***]*

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6.2   The Operations Management Team will meet [***]* and at other times as
      agreed between the Parties.

6.3   The Operations Management Team reviews shall be chaired by the Company
      Relationship Manager.

6.4   The responsibilities and authorities of the Operations Management Team
      will include the following:

      a.    review of the overall performance of the Parties' respective roles
            and responsibilities under this Agreement;

      b.    review of progress of the implementation of the Agreement with
            emphasis on the achievement of key milestones and deliverables;

      c.    implementation of risk management and provide an analysis for review
            by the Executive Steering Committee;

      d.    review of Service delivery and transition management activities and
            the associated contract management reports as provided by the
            Provider Service delivery teams;

      e.    approval of changes to reports;

      f.    review of summary reports as set out in Reports Schedule and submit
            for Executive Steering Committee review, as necessary;

      g.    annual review of the following and making recommendations to the
            Executive Steering Committee, as necessary:

            (i)   KPI's and RSL's based on previous [***]*

            (ii)  Proposal for adjustments to KPI's and RSL's;

            (iii) Company Employee satisfaction surveys;

            (iv)  Adjustments to Services; and

            (v)   Benchmarking results.

      h.    review of the recommendations and suggestions made by the Executive
            Steering Committee relating to the Services and/or Agreement and
            initiate appropriate actions;

      i.    implementation of technical, financial and resource plans;

      j.    providing advice and guidance to the Service delivery teams for
            performance improvement and making recommendations directly to
            Company and Provider; and

      k     delegating any of its powers it considers appropriate to the service
            delivery teams, subject to the terms of the Agreement.

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7.0   INITIAL COMMITTEE MEMBERS

7.1   The initial Relationship Managers shall be:

            [***]*

7.2   The initial Executive Steering Committee members shall be:

            [***]*

8.3   The initial Operations Management Team members shall be:

            [***]*

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                                   SCHEDULE M

                            HARDWARE RIGHTS SCHEDULE

1.0   INTRODUCTION

The Parties have identified on this Schedule M (Hardware Rights Schedule) the
Hardware required for Provider to perform the Services as of the Process Take-On
Date. After the Effective Date, this Hardware Rights Schedule shall be updated
by Provider from time to time to incorporate any Hardware not listed on this
Hardware Rights Schedule that is required for Provider to perform the Services
on or after the Process Take-On Date.

2.0   HARDWARE

Consistent with Section 3.1(b) of the Agreement, the Hardware is categorized in
the Exhibits attached hereto as follows:

               Exhibit I:     Company Group owned Hardware which shall be
                              transferred to Provider as part of the purchased
                              assets;

               Exhibit II:    Company Group owned Hardware which Company
                              will make available for use by Provider in
                              connection with its delivery of the Services;

               Exhibit III:   Hardware which is leased by the Company Group
                              from a third party and which Provider will use
                              under Provider's appointment as Company's
                              representative pursuant to Section 3.3 of the
                              Agreement; and

               Exhibit IV:    leased Hardware for which a consent shall be
                              obtained permitting Provider to use the Hardware
                              in connection with its delivery of the Services,
                              designating whether Company or Provider shall have
                              responsibility for obtaining such consent.

With respect to Hardware leased by a Party from a third party which the other
Party will use in either the delivery or receipt of the Services, the Party
using such Hardware shall comply at all times with the terms and conditions of
the then existing lease agreement between the lessee and the applicable third
party vendor (each a "Retained Agreement") and any and all agreements
(including, but not limited to, consent letters, sublease agreements,
confidentiality agreements, etc.) entered into by the lessee and/or the other
Party and a third party vendor pursuant to which the applicable rights to access
and use are granted (each a "Right to Use Agreement"). The right to use grantee
shall be responsible for all damages incurred by the right to use grantor
arising out of the grantee's non-compliance with any and all Retained Agreements
and Right to Use Agreements. In addition, the grantee shall comply at all times
with the grantor's Hardware policies and procedures with respect to Hardware
owned or leased by the grantor. All Company-owned or leased Hardware used by
Provider shall be subject to Section 3.2 of the Agreement, including, but not
limited to, any time limitations on Provider's rights to access and use such
Hardware. All Provider-owned or leased Hardware shall be subject to equivalent
restrictions applicable to Company's access and use.

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                                    EXHIBIT I
                                       TO
                                   SCHEDULE M

Following is a list of the Company Group owned Hardware which shall be
transferred to Provider as part of the purchased assets:

      [***]*

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                                   EXHIBIT II
                                       TO
                                   SCHEDULE M

Following is a list of the Company Group owned Hardware which Company will make
available for use by Provider in connection with its delivery of the Services:

[***]*

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                                   EXHIBIT III
                                       TO
                                   SCHEDULE M

Following is a list of the Hardware which is leased by the Company Group from a
third party and which Provider will use under Provider's appointment as
Company's representative pursuant to Section 3.3 of the Agreement:

COMPANY LEASED DESKTOPS/LAPTOPS LOCATED OUTSIDE ESC

[***]*

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                                   EXHIBIT IV
                                       TO
                                   SCHEDULE M

Following is a list of the leased Hardware for which a consent shall be obtained
permitting Provider to use the Hardware in connection with its delivery of the
Services, designating whether Company or Provider shall have responsibility for
obtaining such consent:

      [***]*

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                                   SCHEDULE N

                           DISASTER RECOVERY SERVICES

1.    EXISTING DISASTER RECOVERY PLANS

      Commencing on the Process Take on Date, Provider shall follow the existing
      Company ESC Disaster Recovery Plan, as provided in writing by Company to
      Provider, for the applicable Services. In addition, Company shall follow
      the existing Company IT Disaster Recovery Plan.

2.    DISASTER RECOVERY PLAN REVIEW AND MODIFICATION

      In the [***]* following the Process Take On, Company and Provider agree to
      review and revise, as appropriate, the existing Company ESC Disaster
      Recovery Plan and the existing Company IT Disaster Recovery Plan. In
      addition, the Parties shall develop and implement a Joint Disaster
      Recovery Dependency Plan which identifies the interfaces and dependencies
      between the plans and outlines areas of joint responsibility. Each
      Disaster Recovery Plan shall be made up of the following Disaster Recovery
      Plan Description:

            -     Recovery Management Team Procedures:

            -     Functional Team Recovery Procedures:

            -     Administrative and Recovery Progress Procedures:

            -     Ongoing Preparedness Procedures:

3.    REVISED DISASTER RECOVERY PLAN

      Following the [***]* period, Provider and Company shall follow the revised
      Provider ESC Disaster Recovery Plan Company IT Disaster Recovery Services
      and the Joint Disaster Recovery Plans and the provisions agreed to
      therein.

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* Confidential information has been omitted.

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                                   SCHEDULE O

                       AGREED DAMAGES EXCEPTIONS SCHEDULE

1.0   INTRODUCTION

This Agreed Damages Exceptions Schedule sets forth certain exceptions to the
Damages Cap (as defined in Section 14.1(a) of the Agreement) and the limitation
on damages as set forth in Section 14.2(a) of the Agreement.

2.0   EXCEPTIONS

      a.    Provider's indemnification obligations under Section 16.1 of the
            Agreement; and

      b.    Company's indemnification obligations under Section 16.2 of the
            Agreement.

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                                   SCHEDULE P

                              BENCHMARKING SCHEDULE

1.0   INTRODUCTION

This Schedule describes the Benchmark Process, as well as the procedure Company
and Provider will follow to select a Benchmarker, as contemplated under Section
7.4 of the Agreement.

2.0   DEFINITIONS

The following terms have the meanings set forth below when used in this
Schedule:

A.    BENCHMARK PROCESS means the relevant objective measurement and comparison
      process provided for in this Schedule as a means of measuring the
      technology, pricing, processes and Service Levels supplied or adhered to
      by Provider in providing the Services to Company, as compared to other
      organizations providing similar services under relevant arrangements.

B.    BENCHMARK RESULTS shall mean the results of the Benchmarking Process
      delivered by the Benchmarker in a written report to Company and Provider,
      including any supporting documentation requested by Company or Provider to
      analyze the results of the Benchmark Process.

C.    BENCHMARKER means the third party or third parties jointly selected by
      Company and Provider as described in this Schedule to conduct the
      Benchmarking Process.

3.0   ROLE OF BENCHMARKER

The Benchmarking Process shall be conducted by the Benchmarker.

3.1   BENCHMARKER SELECTION PROCESS

a.    Company and Provider will cooperate in good faith to jointly select one or
      more suitable Benchmarkers, taking into consideration the skill,
      experience, responsiveness, objectivity, fees and expenses of qualified
      firms or individuals. Once a Benchmarker has been selected, unless the
      Parties agree otherwise, such Benchmarker shall be used for any future
      Benchmarks.

b.    In the event: (1) a Benchmarker is no longer providing the services
      required to conduct the Benchmarking Process, (2) Company and Provider
      agree that the Benchmarker should be replaced or (3) Company and Provider
      determine that another Benchmarker would be needed to take advantage of
      another system or methodology used by such Benchmarker to conduct the
      Benchmarking Process, Company and Provider shall promptly designate a
      replacement Benchmarker.

3.2   BENCHMARKING PROCESS

a.    The Parties shall not conduct any Benchmarking Process prior to [***]*
      Thereafter, no Benchmarking Process shall be conducted more frequently
      than [***]* period, unless otherwise agreed by the Parties. Subject to the
      foregoing, Company and Provider shall designate the time when each
      Benchmarking Process shall be undertaken.

b.    [***]*

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c.    The Benchmarking Process shall be based upon and consistent with, in all
      material respects, the benchmarking methodology, principles and approach
      agreed to by the Parties, in consultation with the Benchmarker, which
      shall include:

      (i)   a representative sampling of a sufficient number of arrangements
            between providers and receivers of services comparable to the
            Services (the "Comparables"); and

      (ii)  any appropriate adjustments due to differences between the
            Comparables on one hand, and the arrangements between Provider and
            Company under this Agreement, such as differences in the nature or
            type of services received, the respective service environments,
            relative performance standards, volumes, term of agreement, location
            of services, amount of investments made pursuant to or in connection
            with the Comparables, and other similar terms and conditions.

d.    The Parties shall cooperate with each other and the Benchmarker to
      facilitate the Benchmarking Process, which shall include providing
      reasonable information as is necessary to conduct the Benchmarking
      Process; provided, however, that Provider will not be required to (i)
      disclose any of its Confidential Information, (ii) disclose details of
      other customers' confidential information without such customers' consent,
      or (iii) provide any information relating to Provider's margins or costs.

e.    Within [***]* (or as otherwise agreed to by the Parties and the
      Benchmarker) after the completion of any Benchmarking Process, the
      Benchmarker shall deliver the Benchmark Results to each Party's Account
      Manager.

f.    During the [***]* following delivery of the Benchmark Results from the
      Benchmarker, Company and Provider shall review the Benchmark Results and
      schedule one or more meetings (which shall include the Benchmarker) to
      address any issues either Party may have with the Benchmark information or
      the Benchmark Results.

3.3   EFFECT OF BENCHMARK RESULTS

The Parties shall not be specifically bound by the results of the Benchmarking
Process, but the Parties agree that they shall each give due consideration to
such results in accordance with the provisions of Section 7.4 of the Agreement.

3.4   DISPUTES

Any disputes between the Parties concerning the selection of the Benchmarker,
the Benchmark Process, the Benchmark Results, or any other aspects of
benchmarking may be escalated to the Executive Steering Committee for final and
binding resolution. No such disputes may be escalated beyond the Executive
Steering Committee or submitted to any other forum except as provided in the
Dispute Resolution Schedule.

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                                   SCHEDULE Q

                  DATA PRIVACY AND SECURITY PROCEDURES SCHEDULE

1.0   INTRODUCTION

This schedule sets forth the respective data management, data privacy and
security responsibilities of Company and Provider under the Agreement, which are
in addition to those Services described in the Agreement and the SERVICES
SCHEDULE.

2.0   DEFINITIONS

The following terms have the meanings set forth below when used in this
schedule. Capitalized terms used but not defined in this schedule have the
meanings assigned to them in the Glossary.

      "Focal Point" means, with respect to either Provider or Company, the
      person designated by a Party with responsibility for day-to-day data and
      security management for such Party.

      "Personal Data" means any data relating to Employees Served (as defined in
      the Charges Schedule (Schedule C)) that Provider processes on behalf of
      Company or otherwise has access to under or in connection with this
      Agreement or in performing the Services.

3.0   GENERAL

      a.    Prior to the Process Take-On Date, Provider shall, with Company's
            participation and assistance, develop and document a framework and
            plan for the ongoing identification, implementation, and maintenance
            of, and compliance with, data management, data privacy and security
            practices that Provider and Company will be responsible for
            implementing and following during the Term of the Agreement. Both
            Parties recognize and agree that the detailed requirements for data
            management, data privacy, and security will likely develop and
            evolve over the Term of the Agreement, and that this Schedule, and
            the Parties' obligations with respect to such matters will similarly
            evolve during the Term.

      b.    Provider's Focal Point will be responsible for supervising
            Provider's data management, data privacy and security activities,
            and will be generally familiar with data management, data privacy
            and data security requirements and issues relevant to the Services
            and Provider's business. Company's Focal Point will be responsible
            for supervising Company's data management, data privacy and security
            activities, and will be generally familiar with data management,
            data privacy and data security requirements and issues relevant to
            the Services and Company's business.

      c.    Unless otherwise agreed by Company and Provider, the services
            required from Provider under this Schedule are deemed to be an
            inherent part of the Services and shall be included in the Services
            provided by Provider and the Base Charges.

      d.    Company shall retain responsibility for all server-level data
            management, data privacy and security practices.

      e.    The Parties acknowledge that they may need to amend this Schedule or
            the Agreement within a commercially reasonable time prior to the
            effective date of any HIPAA privacy regulations, pursuant to the
            terms of Section 2.10(b) of the Agreement.

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4.0   DATA MANAGEMENT

      a.    Obligations with Respect to Privacy and Data Protection Laws

            1.    Provider and Company are each responsible for complying with
                  their respective obligations under the applicable privacy and
                  data protection laws governing Personal Data. Provider shall
                  comply with its obligations as Company's service provider,
                  processor and/or business associate under applicable data
                  protection laws. Where applicable, Company shall comply with
                  its obligations as the owner or controller of any such
                  Personal Data under applicable privacy and data protection
                  laws.

            2.    Company may create, or request that Provider create, any and
                  all programs, plans, procedures or measures Company deems
                  necessary, in its sole discretion, to comply with its
                  obligations set forth in Section 4.0(a)(1) of this Schedule.
                  Upon Company's request, Provider shall implement and maintain
                  throughout the term of the Agreement any and all such
                  programs, plans, procedures or measures created or dictated by
                  Company as part of the Services.

            3.    Subject to the terms and conditions of the Agreement and this
                  Schedule, each Party shall take steps it deems necessary to
                  comply with its obligations set forth in Section 4.0(a)(1) and
                  this Schedule; provided, however, that such Party shall use
                  commercially reasonable efforts to minimize the impact of such
                  steps on the other Party.

            4.    Provider shall fully cooperate with and reasonably assist
                  Company with responding to any data protection authority,
                  governmental agency, or other third party to the extent
                  necessary, in Company's sole reasonable discretion, to comply
                  with applicable privacy or data protection laws. To the extent
                  requested by Company, Provider shall fully cooperate with and
                  assist Company in support of Company's efforts to satisfy the
                  requirements of applicable privacy and data protection laws or
                  regulations, or any safe harbors or exemptions to such privacy
                  and data protection laws as such relate to the Services.

            5.    Provider shall fully cooperate with and reasonably assist
                  Company in fulfilling registration or other applicable
                  requirements under privacy or data protection laws, including
                  without limitation, providing requested information and
                  registering with data protection authorities or joining
                  self-regulatory programs as requested by Company in order to
                  permit Company and Provider to acheive the purposes of the
                  Agreement.

            6.    Changes to the Charges required by this Section 4.0(a) shall
                  be handled through the Change Control Procedures.

      b.    Data Usage and Management

            1.    Provider shall use the Personal Data only for the purposes of
                  providing the Services under this Agreement. Provider shall
                  treat all Personal Data as Confidential Information in
                  accordance with the confidentiality and security provisions of
                  the Agreement. Provider shall not disclose any such Personal
                  Data to any third party except as expressly authorized under
                  the Agreement, to the extent required by law or order of a
                  court of governmental agency, as required in order to perform
                  the Services in the ordinary course of business, or as
                  otherwise permitted under the terms of this Agreement.
                  Provider shall not use or disclose the Personal Data for the
                  purpose of marketing products or services to individuals whose
                  names are contained in the Personal Data. For the avoidance of
                  doubt, the foregoing sentence shall not restrict Provider's
                  communications to such individuals about the Services or any
                  products or services of Company.

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            2.    Provider will enter into such data protection agreements with
                  Company as may be reasonably required by governmental agencies
                  or data protection authorities in any jurisdiction after the
                  Effective Date and reasonably agreed to by Provider and
                  Company in discussions with such data protection authorities.

            3.    Company and Provider shall, as part of the plan to be
                  established under Section 3.0(a) above, establish technical
                  and organizational measures to ensure the security and
                  confidentiality of Personal Data, and to protect against
                  accidental or unlawful destruction or accidental loss,
                  alteration, unauthorized disclosure of or access to the
                  Personal Data, and security programs and procedures to ensure
                  that unauthorized persons will not have access to the systems
                  used to access or process the Personal Data.

            4.    Provider will ensure that any of its employees and
                  subcontractors whom it authorizes to have access to Personal
                  Data will comply with Provider's obligations under this
                  schedule and the confidentiality and security provisions of
                  the Agreement as applicable to the Personal Data.

      c.    Data Transfer

            1.    Provider will not transfer Personal Data out of the United
                  States, or otherwise engage in transfers of Personal Data from
                  one country to another, except as required for the express
                  purpose of fulfilling its obligation to provide Services under
                  this Agreement. Provider will obtain any required consents
                  prior to transferring any such Personal Data in accordance
                  with this provision.

      d.    Information Requests

            1.    If Company is required to provide information to an individual
                  regarding his or her Personal Data, Provider will respond
                  promptly to Company's inquiries concerning such Personal Data
                  and will reasonably cooperate with Company in providing such
                  information.

            2.    Upon Provider's or Company's reasonable written request,
                  Company or Provider will provide the other with such
                  information that it has regarding Personal Data and its access
                  and processing that is necessary to enable the requester to
                  comply with its obligations under this Section and the
                  applicable data protection laws.

      e.    Audit Rights

            1.    Provider will permit Company to audit Provider's compliance
                  with its data management, data privacy and security
                  obligations under the Agreement, this Schedule and the other
                  Schedules in accordance with Section 2.9 of the Agreement.

      f.    Event Management

            1.    Company and Provider shall develop, document and implement a
                  process for immediately addressing any incident relating to
                  data privacy, protection or security. In the event of any
                  claim or charge by a third party (including any individual or
                  data protection authority) that Company or Provider is not in
                  compliance with its obligations under applicable privacy and
                  data protection laws or has violated any privacy or data
                  protection law, Provider and Company shall cooperate with each
                  other and provide without delay all necessary resources or
                  cooperation to address and remedy such claim or charge that it
                  has not complied with its obligations as rapidly as possible.

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5.0   PHYSICAL/FACILITY SECURITY; LOGICAL SECURITY CONTROLS

      a.    Provider shall provide reasonable physical security controls at the
            Employee Service Center, which shall provide for physical security
            controls consistent with or better than those in place as of the
            Process Take-on Date. Provider shall immediately notify Company of
            any breach of such security controls or any suspicious activity
            affecting Company, Personal Data, Company Information or Provider's
            systems and shall take all necessary action to promptly correct such
            security problem.

      b.    Provider shall permit only those persons with legitimate business
            purposes to have access to the Employee Services Center.

      c.    Provider shall use the South Entrance of the building for access to
            the Employee Services Center.

      d.    Company's Relationship Manager, and members of Company's Operations
            Team, Executive Steering Committee, Gain Sharing Governance
            Committee, and Technology and Business Processes Governance
            Committee shall have reasonable unrestricted access to the Employee
            Services Center.

      e.    Provider shall comply with Company's logical access control
            procedures, and shall cooperate with Company in the administration
            of such controls.

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                                   SCHEDULE R

                           DISPUTE RESOLUTION SCHEDULE

1.0   DEFINED TERMS

Capitalized terms not otherwise defined herein have the meanings ascribed to
them in the Glossary.

      "Complex Dispute List" means the Complex Dispute List maintained by
      J*A*M*S/Endispute ("JAMS") or another list of individuals having similar
      qualifications maintained by JAMS.

      "Committee Exclusive Disputes" shall have the meaning set forth in Section
      2.2(e) below.

      "Dispute" means any dispute, controversy or claim of any kind or nature
      arising under or in connection with the Agreement, including without
      limitation, disputes as to the creation, validity, interpretation, breach
      or termination of this Agreement.

      "Executive Steering Committee" shall have the meaning set forth in the
      Account Governance Schedule.

      "Qualifications" means extensive knowledge or experience regarding the
      subject of the Dispute.

2.0   DISPUTE RESOLUTION PROCESS

2.1   General. Except as otherwise stated in the Agreement, all Disputes arising
      between the Parties shall be resolved in accordance with the process set
      forth in this Dispute Resolution Schedule (the "Dispute Resolution
      Process"). Notwithstanding the foregoing, in the event of any
      inconsistency in the Dispute Resolution Process set forth in this Schedule
      and any other process to resolve Disputes set forth elsewhere in this
      Agreement or otherwise used by the Parties to resolve Disputes without
      referring the Dispute to a third party, either Party may elect that both
      Parties adhere to this Dispute Resolution Process (it being acknowledged
      that such other processes generally contemplate that the Parties can
      resolve a Dispute without the need for mediation or arbitration, whereas
      the Dispute Resolution Process in this Schedule generally contemplates the
      potential need for the parties to resort to mediation or arbitration to
      resolve a particular Dispute). Company and Provider shall at all times
      exercise reasonable, good faith efforts to resolve all Disputes in a
      timely, amicable and efficient manner.

2.2   Escalation Procedure.

      (a)   Relationship Managers. All Disputes shall initially be referred by
            either Party to both Parties' Relationship Manager. Each Party's
            Relationship Manager shall negotiate with the other Party's
            Relationship Manager to resolve the Dispute.

      (b)   Executive Steering Committee. If the Relationship Managers do not
            resolve the Dispute within [***]* (or such longer period as the
            Relationship Managers may agree) after the date of referral of the
            Dispute to them, either Party may elect to proceed directly to the
            Executive Steering Committee.

      (c)   Acceleration. Notwithstanding the foregoing, in the event either
            Party determines at any time and in its sole discretion that the
            Dispute relates to such a critical matter that the Escalation
            Procedure set forth in this Section 2.2 will not resolve the Dispute
            in a timely

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            or satisfactory manner, such Party may accelerate the Dispute
            directly to the Executive Steering Committee. Subject to the
            provisions of Section 2.2(e) with respect to Committee Exclusive
            Disputes, if the Executive Steering Committee does not resolve the
            accelerated Dispute within [***]* after the date of referral of such
            Dispute to such committee, either Party may submit the Dispute to
            binding arbitration in accordance with Section 2.4 below.

      (d)   Committee Exclusive Disputes. The Executive Steering Committee shall
            be the final forum for the resolution of any Dispute with respect to
            the following matters (the "Committee Exclusive Disputes"):

            1.    Technology strategy and policy issues which are the subject of
                  the Technology and Process Governance Schedule;

            2.    Benchmarking;

            3.    Claims for damages arising under the Agreement where the
                  damages claimed, together with related damages claimed under
                  the Human Resources Services Agreement and the Software
                  Development Agreement, are less than $250,000 measured
                  annually; and

            4.    [Applicability of Section 1.7 (Most Favored Customer) of the
                  Agreement.]*

            In no event may a Committee Exclusive Dispute be escalated beyond
            the Executive Steering Committee, or submitted to mediation,
            arbitration, or any other forum for resolution, unless the Executive
            Steering Committee agrees to do so. [***]*

2.3   Further Escalation. Any Dispute that is not a Committee Exclusive Dispute
      may be further escalated as follows:

      (a)   Non-binding Mediation. If the Executive Steering Committee does not
            resolve the Dispute within [***]* (or such longer period as that
            Committee may agree) after the date of referral to it, either Party
            may submit the Dispute to non-binding mediation in accordance with
            Section 2.4 below.

      (b)   Binding Arbitration. If the Dispute is not resolved by any of the
            preceding steps and is not resolved by mediation, either Party may
            submit the Dispute to binding arbitration in accordance with Section
            2.5 below.

      (c)   Miscellaneous. If the Parties act pursuant to another process set
            forth elsewhere in this Agreement or as otherwise agreed to in their
            attempt to resolve a particular Dispute without referral of the
            Dispute to a third party (e.g., the parties utilize dispute
            resolution procedures pursuant to the ACCOUNT GOVERNANCE SCHEDULE),
            the Parties shall be deemed to have completed the steps in Sections
            2.2(a), 2.2(b) and 2(c) of this Dispute Resolution Process if the
            substance of those steps have been taken and those timeframes have
            been met by the Parties in such other process, such that either
            Party may then elect to proceed directly to either non-binding
            mediation in accordance with Section 2.4below or to binding
            arbitration in accordance with Section 2.5 below.

2.4   Mediation. Mediation of an unresolved Dispute shall be conducted in the
      following manner:

      (a)   Either Party may submit the Dispute to mediation by giving Notice of
            mediation to the other Party. The Parties shall thereafter attempt
            to promptly agree upon and appoint a sole mediator who has the
            Qualifications.

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      (b)   If the Parties are unable to agree upon a mediator within [***]*
            after the date the Dispute is submitted to mediation, either Party
            may request the [***]* office of JAMS to appoint a mediator who has
            the Qualifications. The mediator so appointed shall be deemed to
            have the Qualifications and to be accepted by the Parties.

      (c)   The mediation shall be conducted in the [***]* at a place and a time
            agreed by the Parties with the mediator, or if the Parties cannot
            agree, as designated by the mediator. The mediation shall be held as
            soon as practicable, considering the schedules of the mediator and
            the Parties.

      (d)   If either Party has substantial need for information from the other
            Party in order to prepare for the mediation, the Parties shall
            attempt to agree on procedures for the formal exchange of
            information. If the Parties cannot agree, the mediator's
            determination shall become effective.

      (e)   Each Party shall be represented in the mediation by at least its
            Relationship Manager or another natural Person with authority to
            settle the Dispute on behalf of that Party and, if desired by that
            Party, by counsel for that Party. The Parties' representatives in
            the mediation shall continue with the mediation as long as the
            mediator requests, but in no event longer than [***]* unless
            otherwise agreed.

      (f)   [***]*

2.5   Arbitration. Arbitration of an unresolved Dispute shall be conducted in
      the following manner:

      (a)   Either Party may initiate arbitration by filing a demand for
            arbitration (the "Demand") in accordance with the American Rules of
            Arbitration (the "Arbitration Rules"). The Parties shall thereafter
            attempt to promptly agree upon and appoint a Panel of three
            arbitrators (the "Panel"). Each of those arbitrators must have the
            Qualifications, and at least two of those arbitrators must be
            included in the Complex Dispute List.

      (b)   If the Parties are unable to agree upon any or all of the
            arbitrators within [***]* after the filing of the Demand (and do not
            agree to an extension of that ten-day period), either Party may
            request the [***]* office of JAMS to appoint the arbitrator or
            arbitrators, who have the Qualifications (and at least two of whom
            must be included in the Complex Dispute List), necessary to complete
            the Panel in accordance with the Arbitration Rules. Each arbitrator
            so appointed shall be deemed to have the Qualifications and to be
            accepted by the Parties as part of the Panel.

      (c)   The arbitration shall be conducted in the [***]* at a place and a
            time agreed by the Parties with the Panel, or if the Parties cannot
            agree, as designated by the Panel. The Panel may, however, call and
            conduct hearings and meetings at such other places as the Parties
            may agree or as the Panel may, on the motion of one Party, determine
            to be necessary to obtain significant testimony or evidence.

      (d)   The Parties shall attempt to agree upon the scope and nature of any
            discovery for the arbitration. If the Parties do not agree, the
            Panel may authorize any and all forms of discovery, including
            depositions, interrogatories, and document production, upon a
            showing of particularized need that the requested discovery is
            likely to lead to material evidence needed to resolve the Dispute.

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      (e)   The arbitration shall be subject to the Federal Arbitration Act and
            conducted in accordance with the Arbitration Rules to the extent
            they do not conflict with this Section 2.4. The Parties and the
            Panel may, however, agree to vary the provisions of this Section 2.4
            or the matters otherwise governed by the Arbitration Rules.

      (f)   The Panel has no power to:

            (i)   rule upon or grant any extension, renewal, or continuance of
                  the Agreement; or

            (ii)  award remedies or relief either expressly prohibited by the
                  Agreement or under circumstances not permitted by the
                  Agreement.

      (g)   Unless the Parties otherwise agree, all Disputes hereunder and under
            the Human Resources Services Agreement and/or the Software
            Development Agreement regarding or related to the same topic or
            event that are subject to arbitration during the same time period
            shall be consolidated in a single arbitration proceeding.

      (h)   A Party or other Person involved in an arbitration under this
            Section 2.4 may join in that arbitration any Person other than a
            Party if:

            (i)   the Person to be joined agrees to resolve the particular
                  Dispute or controversy in accordance with this Section 2.4 and
                  the other provisions of this Dispute Resolution Schedule
                  applicable to arbitration; and

            (ii)  the Panel determines, upon application of the Person seeking
                  joinder, that the joinder of that other Person will promote
                  the efficiency, expediency and consistency of the result of
                  the arbitration and will not unfairly prejudice any other
                  party to the arbitration.

      (i)   The arbitration hearing shall be held within [***]* after the
            appointment of the Panel unless the Parties agree otherwise. Upon
            request of either Party, the Panel shall arrange for a transcribed
            record of the arbitration hearing, to be made available to both
            Parties.

      (j)   The Panel's final decision or award shall be made within [***]*
            after the hearing. That final decision or award shall be made by
            unanimous or majority vote or consent of the arbitrators
            constituting the Panel, and shall be deemed issued at the place of
            arbitration. The Panel shall issue a reasoned written final decision
            or award based on the Agreement and the laws of the State of [***]*
            exclusive of its conflicts of laws provisions and to the extent not
            preempted by federal law.

      (k)   The Panel's final decision or award may include:

            (i)   recovery of Damages to the extent permitted by the Agreement;
                  or

            (ii)  injunctive relief in response to any actual or threatened
                  breach of the Agreement or any other actual or threatened
                  action or omission of a Party under or in connection with the
                  Agreement.

      (l)   The Panel's final decision or award shall be final and binding upon
            the Parties, and judgment upon that decision or award may be entered
            in any court having jurisdiction over either or both of the Parties
            or their respective assets. The Parties specifically waive any right
            they may have to apply or appeal to any court for relief from the

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            preceding sentence or from any decision of the Panel, or any
            question of law arising from or related to the Dispute, before or
            after the final decision or award.

      (m)   [***]*

3.0   EXCEPTIONS

3.1   Recourse to Courts. Nothing in the Agreement, this Dispute Resolution
      Schedule or otherwise shall limit the right of either Party to apply to a
      court or other tribunal having jurisdiction to:

      (a)   enforce the Dispute Resolution Process;

      (b)   seek provisional or injunctive relief (including without limitation
            the provision of Termination Assistance Services), in response to an
            actual or impending breach of the Agreement or otherwise so as to
            avoid irreparable damage or maintain the status quo, until a final
            arbitration decision or award is rendered or the Dispute is
            otherwise resolved; or

      (c)   take any other action to resolve the Dispute, whether or not
            permitted by or in conflict with the Dispute Resolution Process, if
            the action is specifically agreed to in writing by the Parties.

4.0   MISCELLANEOUS

4.1   Confidentiality. The proceedings of all negotiations, mediations, and
      arbitrations as part of the Dispute Resolution Process shall at all times
      be privately conducted. The Parties agree that all information, materials,
      statements, conduct, communications, negotiations, mediations,
      arbitrations, offers of settlement, documents, decisions, and awards of
      either Party, in whatever form and however disclosed or obtained in
      connection with the Dispute Resolution Process:

      (a)   shall at all times be Confidential Information;

      (b)   shall not be offered into evidence, disclosed, or used for any
            purpose other than the Dispute Resolution Process; and

      (c)   will not constitute an admission or waiver of rights.

4.2   Continued Performance. Except where clearly prevented by the nature of the
      Dispute as agreed to in writing by both Parties or where restrained or
      enjoined by the Panel or a court or tribunal with appropriate
      jurisdiction, the Parties agree to continue performing their respective
      obligations under the Agreement while a Dispute is being resolved.

4.3   Notice. Any referral or acceleration required or permitted herein shall be
      made by Notice to the applicable Persons designated herein. The date of
      referral is the effective date of the Notice to the Persons to whom the
      Dispute must have been referred.

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                                   SCHEDULE S

                               INSURANCE SCHEDULE

1.0   INTRODUCTION

This Insurance Schedule sets forth the types of insurance and the minimum limits
per occurrence, accident, claim or loss the Provider will maintain throughout
the term of the Agreement.

2.0   COVERAGES TABLE

[***]*

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                                   SCHEDULE T

                         TERMINATION ASSISTANCE SCHEDULE

1.0   INTRODUCTION

1.1   This Termination Assistance Schedule describes certain activities that the
      Parties shall undertake in connection with a termination or expiration of
      the Agreement. The Parties shall develop a Termination Assistance Plan.
      Capitalized terms used but not defined in this Schedule have the meanings
      assigned to them in the Glossary to the Agreement.

2.0   TERMINATION ASSISTANCE PLAN

2.1   Provider and Company shall establish a termination assistance team
      ("Termination Assistance Team") tasked with:

      (a)   documenting a Termination Assistance Plan that can be executed in
            connection with expiration or termination of the Agreement;

      (b)   meeting and agreeing to the details of the relevant Termination
            Assistance Plan and reviewing and updating the plan at least
            annually;

      (c)   facilitating the transition during the Termination Assistance
            Period; and

      (d)   managing the performance of the Parties' respective obligations
            under the Termination Assistance Plan.

2.2   In accordance with Section 13.3 of the Agreement, the Termination
      Assistance Team shall jointly develop, and Provider will submit for
      Company's approval a Termination Assistance Plan within [***]* after the
      Process Take-On Date. Provider will update the entire plan at least once
      per [***]* or after any significant event.

2.3   The Termination Assistance Plan will include the activities, timeframes
      and dependencies for transition of the Services performed by Provider to
      Company or a third party successor of Provider. This will include, by
      necessity, any activities needed to extract Company data and processes and
      access to those assets in the event that extraction is not feasible or
      desirable. The Termination Assistance Plan shall also address the manner
      in which Provider will minimize any disruption and/or degradation of the
      Services.

2.4   Provider will provide Company the opportunity to provide input into the
      Termination Assistance Plan through the Termination Assistance Team.

2.5   Consistent with the provisions set forth in Sections 13.3 and 13.4 of the
      Agreement, and any other services agreed to by the Parties, Provider will
      include the following Termination Assistance Services in the Termination
      Assistance Plan to be performed upon a termination or expiration of the
      Agreement:

      [***]*

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                                   SCHEDULE U

                                REPORTS SCHEDULE

1.0   INTRODUCTION

This Schedule identifies Provider's and Company's responsibilities in connection
with providing reports ("REPORTS").

2.0   GENERAL

2.1   Provider shall prepare and deliver to Company the Reports required under
      the Agreement and the Schedules to the Agreement.

2.2   From time to time, as part of the Services, Provider shall be responsible
      for preparing and delivering ad hoc Reports as required under the Services
      Schedule. Such Reports shall be delivered according to timing reasonably
      specified by Company.

2.3   Provider shall prepare and deliver to Company, within [***]* following the
      end of each calendar month, Reports regarding Provider's performance
      against each of the established Service Levels (i.e., the KPIs and RSLs as
      set forth in the Service Levels Schedule); provided, however, that Company
      may identify certain priority Reports which shall be delivered earlier, as
      mutually agreed. Company shall prepare and deliver to Provider within
      [***]* following the end of each calendar month, Reports regarding
      Company's performance against each of the established Company RSLs. Such
      reports shall be in sufficient detail to permit Company and Provider to
      determine the level of the other's performance in accordance with the
      Service Levels Schedule (Schedule B).

2.4   [***]*

2.5   The format of the Reports (including the form of delivery media, which may
      include paper and/or electronic form) shall be in accordance with
      Provider's standard formats; provided, however, that during the [***]*
      period following the Process Take-On Date, Company and Provider shall
      refine the appearance and content of the Reports to accommodate Company's
      reasonable business requirements.

2.6   All Reports will contain accurate and complete data based on the available
      data.

2.7   Preparation and delivery of Provider's Reports under this Schedule shall
      be considered part of the Services, and there shall be no additional
      charges or fees to Company associated with such activity.

2.8   For each Report, upon Company's reasonable request, Provider will answer
      any questions that Company may have regarding such Report.

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                                   SCHEDULE V

                     TECHNOLOGY PROCESS GOVERNANCE SCHEDULE

1.0   INTRODUCTION

Prior to the Process Take-On Date, Company and Provider will develop specific
procedures regarding changes, modifications and amendments to the Services IT
platform and certain business processes, which the Parties will follow as of the
Process Take-On Date (the "Technology Process Procedures"). This Technology
Process Governance Schedule sets out the process by which the Technology Process
Governance Procedures will be developed and finalized and the scope and
requirements of the Technology Process Procedures. For purposes hereof,
"technology process" or "Technology Process" means technology processes as
outlined in the Services Schedule (Schedule A) that involve how inputs are
prepared by Company and delivered to Provider, and how outputs are received by
Company from Provider, provided that such terms shall not include technology or
other processes that are internal to Provider.

2.0   TECHNOLOGY PROCESS PROCEDURES

2.1   Development. Provider and Company shall jointly develop and finalize the
      Technology Process Procedures prior to the Process Take-On Date. The
      Parties shall establish a team to develop the Technology Process
      Procedures, which shall be comprised of the Company Relationship Manager,
      the Provider Relationship Manager and no more than two additional
      representatives from each Party designated by the Relationship Managers.
      Company's processes and procedures shall apply until such time as the
      Parties have agreed to the Technology Process Procedures and Provider
      shall comply with all such Company processes and procedures. The Parties
      shall act in good faith at all times during the development of the
      Technology Process Procedures.

2.2   Scope. The Technology Process Procedures will describe in detail the
      processes and procedures to be followed by the Parties for management of
      the day-to-day operations relating to the following:

      (a)   Problem resolution with respect to the Services IT platform
            processes;

      (b)   Nomination and implementation of application and other operational
            changes to the Services IT platform;

      (c)   Requests by Company for personnel and other resources;

      (d)   Initiation and management of projects;

      (e)   Approval and implementation of changes required prior to Provider
            providing services to any third party other than Company using the
            Employee Service Center;

      (f)   Establishment of a technology governance team;

      (g)   Implementation of any changes or other initiatives according to
            Change Control Procedures or agreement on New Services; and

      (h)   Any other pertinent information as mutually agreed upon by the
            Parties.

2.3   Required Provisions. The Parties agree that, in addition to any provisions
      agreed to by the Parties, the Technology Process Procedures shall include
      provisions relating to the following:

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      (a)   Disputes involving the Services IT platform shall be escalated for
            resolution in accordance with the Dispute Resolution Schedule;

      (b)   Company shall make any changes, modifications or enhancements that
            Company deems appropriate in its sole discretion to any Company
            owned or provided hardware, software or system provided that any
            such change, modification or enhancement shall not have a material
            adverse impact on Provider's delivery of the Services, or Provider's
            performance in accordance with the Agreement (including Service
            Levels).

      (c)   Provider shall use commercially reasonable efforts to make
            additional SAP support personnel available as requested by Company
            to assist Company with Project Viking, which resources shall be
            charged to Company as set forth in Section 4.1.4(6) of the CHARGES
            SCHEDULE.

      (d)   Subject to Section 1.5 of the Agreement, prior to Provider providing
            services to any third party other than Company using the Employee
            Service Center, the Parties shall have agreed upon the transfer or
            replacement of the Company owned or provided IT infrastructure in
            the Employee Service Center, which includes, but shall not be
            limited to, the following:

            [***]*

      (e)   With respect to the establishment of a Technology Process Management
            Team:

            (i)   A Technology Process Management Team will be formed and the
                  initial members assigned prior to the Process Take-On Date.

            (ii)  The Technology Process Management Team shall be involved in
                  the management of any proposed or implemented change,
                  amendment or addition to the Services IT platform or the
                  business processes. The Technology Process Management Team
                  will meet on a monthly basis, and at any other time as
                  required by the Agreement or as necessary or as agreed to by
                  the Parties.

            (iii) The Technology Process Management Team will be comprised of
                  the Parties' Relationship Managers and any other
                  representatives designated by the Relationship Managers.

            (iv)  The responsibilities and authorities of the Technology Process
                  Management Team will include management of the Technology
                  Process Procedures, including, but not limited to, management
                  of the Change Control Process with respect to Changes that
                  impact the Services IT platform and/or any business processes.

2.4   Mutual Responsibilities. Each Party agrees to perform its responsibilities
      set forth in the Technology Process Procedures as mutually agreed upon by
      the Parties.

2.5   Effectiveness. Once approved by both Parties, the Technology Process
      Procedures shall be signed by both Provider's and Company's Relationship
      Managers, at which time such signed Technology Process Procedures shall be
      deemed to be agreed and incorporated into the Agreement on the date of
      signature or as the Parties may otherwise agree.

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2.6   Conflicts. In the event of a conflict between the provisions of the
      Agreement and the Technology Process Procedures, the provisions of the
      Agreement will control unless the Parties expressly agree otherwise in
      writing.

2.7   Updates and Amendments. During the Term, Provider will update and amend
      the Technology Process Procedures to the extent deemed necessary by the
      Parties to reflect new Services, changes in the operating environment or
      changes in the operations or procedures described in the Technology
      Process Procedures. The Parties shall submit any changes to the Technology
      Process Procedures for review, comment and approval in accordance with the
      CHANGE CONTROL SCHEDULE.

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                                   SCHEDULE W

                       THIRD PARTY PARTICIPATION SCHEDULE

1.0   INTRODUCTION

This Schedule lists certain third party contractors and subcontractors of
Company having certain access and cooperation rights, as contemplated by Section
2.3 of the Agreement.

The listing of Third Parties and the nature of access and cooperation provided
under this Schedule may be amended from time to time by mutual agreement of the
Parties. Company will be responsible for requiring all Third Parties to have
adequate insurance against damages to Provider's assets and people, to comply
with Provider's security and confidentiality procedures, and Company will make
its Relationship Manager (or appropriate designee) available to assist Provider
with any necessary problem resolution with such third parties.

2.0   PARTICIPATING THIRD PARTIES

[***]*

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

Schedule W - Technical Services Agreement - Final       1
October 18, 2001
<PAGE>
Proprietary and Confidential                         International Paper / Exult

                                   SCHEDULE X

                         ADDITIONAL AGREEMENTS SCHEDULE

1.    Additional Agreements shall mean:

      (a)   The Side Letter regarding the possible commission payments to be
            paid by Provider to Company;

      (b)   The Conveyance Document;

      (c)   The ancillary agreements to the Conveyance Document;

      (d)   The Sub-Lease;

      (e)   The Personal Property Sublease; and

      (f)   Site Licenses for the following locations:

            BPTC
            4070 Willow Lake Blvd.
            Memphis, TN 38118

            ITDC
            4100 Willow Lake Blvd.
            Memphis, TN 38118

            Tower I
            6400 Poplar Ave.
            Memphis, TN 38197.

2.    The Process-Take-On Date shall not occur unless and until each of the
      following conditions has been satisfied or waived by each Party:

      (a)   The Services under this Agreement and the services under each of the
            Optional Agreements shall have been completely migrated/converted to
            Provider; and

      (b)   The Additional Agreements shall have been completed and executed in
            a form satisfactory to each Party.

Schedule X - Technical Services Agreement - Final       1
October 18, 2001
<PAGE>
Proprietary and Confidential                         International Paper / Exult

                                   SCHEDULE Y

                        AUDITOR CONFIDENTIALITY SCHEDULE

The terms and conditions listed below, or terms and conditions that are
equivalent in all material respects, shall be included in a confidentiality and
non-disclosure agreement that any auditor designated by Company ("Auditor")
under Section 2.8 of the Agreement shall execute prior to the commencement of
any audit activities permitted under the Agreement. At the request of Provider
at the time, Company shall provide Provider with a copy of the executed
confidentiality and non-disclosure agreement for each Auditor prior to the
commencement of any audit activities by such Auditor.

      1.    That Auditor will hold as confidential all Confidential Information
            of Provider and Company, restricting access and use of all such
            Confidential Information solely to those of Auditors employees who
            have a legitimate need to know for purposes of the applicable audit.

      2.    That Auditor's employees having access to Provider's Confidential
            Information shall be bound by written employment or non-disclosure
            agreements broad enough in scope to require such employees to
            maintain the confidentiality of Provider's Confidential Information.

      3.    That Auditor's access to systems, data, facilities and personnel
            owned or managed by Provider shall be solely for purposes of the
            audit and Auditor shall comply with Provider's reasonable security
            and access restrictions to safeguard any Provider Confidential
            Information and any information relating to other Provider customer.

      4.    That Auditor shall not under any circumstances use, copy, disclose,
            disseminate, commercially exploit in any way (including, without
            limitation, to compete with Provider), or prepare Derivative Works
            from, any Confidential Information of Provider, except as reasonably
            necessary to perform the audit activities or as required by law.

      5.    At the request of Provider at the time, Provider shall be named as a
            third party beneficiary of the agreement with the Auditor.

Schedule Y - Technical Services Agreement - Final       1
October 18, 2001
<PAGE>
Proprietary and Confidential                         International Paper / Exult

                                   SCHEDULE Z

                      TERMINATION FOR CONVENIENCE SCHEDULE

1.0   INTRODUCTION

This Termination for Convenience Schedule describes the procedures to be
followed by Company if it elects to terminate the Agreement for convenience
pursuant to Section 12.5 of the Agreement.

2.0   TERMINATION FOR CONVENIENCE

Company may elect to terminate the Agreement for its convenience, by providing
Provider with [***]* prior written notice stating Company's election to
terminate for its convenience and the effective date of such termination,
provided that such effective date shall be no earlier than [***]* A termination
for convenience under either Optional Agreement shall be deemed an election to
terminate for convenience under this Agreement.

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

Schedule Z - Termination for Convenience - Final     1
October 18, 2001<PAGE>
                                                                   EXHIBIT 10.37

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

                                    SUBLEASE

THIS SUBLEASE ("SUBLEASE"), dated as of January 1, 2002, is entered into between
INTERNATIONAL PAPER COMPANY, a New York corporation having a principal office at
400 Atlantic Street, Stamford, CT 06921 ("IP") and Exult, Inc., a Delaware
corporation having a principal office at 4 Park Plaza, Suite 1000, Irvine, CA
92614 ("EXULT").

      WHEREAS, IP leases an approximately 217,743 square foot building located
at 4049 Willow Lake Boulevard, Willow Lake Business Park, Memphis, Tennessee
38118 commonly known as Willow Lake Business Park Building Ten (the "Building"),
pursuant to a Lease dated September 7, 1999 and Lease Amendment No. 1 dated as
of January 1, 2000 by and between AMB Property II, L.P., as landlord (the
"Landlord"), and IP, as tenant (collectively the "PRIME LEASE"). A copy of the
Prime Lease is attached hereto as Exhibit "A".

      WHEREAS, the Building is subject to a Real Property Lease Agreement dated
as of December 31, 1999 and a First Amendment to Real Property Lease Agreement
by and between The Industrial Development Board of the City of Memphis and
County of Shelby, Tennessee (the "IDB"), as lessor, AMB Property II, L.P. as
lessee and IP as applicant (collectively the "IDB Lease"). A copy of the IDB
Lease is attached hereto as Exhibit "B".

      WHEREAS, IP and Exult have entered into a Human Resources Services
Agreement, Technical Services Agreement, and Systems Services Agreement, each
dated as of October 18, 2001 pursuant to which Exult will provide certain human
resources business process services to IP (each an "MSA COMPONENT AGREEMENT" and
collectively, the "MSA").

      WHEREAS, in connection with the MSA, IP has required that Exult (i) lease
from IP the portion of the Building through which IP has performed human
resources related functions (the "EMPLOYEE SERVICE CENTER"), (ii) initially
provide services under the MSA from the Employee Service Center, and (iii)
maintain a business presence at the Employee Service Center for the duration of
the MSA.

      WHEREAS, Exult desires to sublease the Employee Service Center and IP is
willing to sublet the same on the conditions hereinafter set forth.

      NOW, THEREFORE, in consideration of the covenants and agreements
hereinafter contained to be performed by each of the parties, it is hereby
agreed:
<PAGE>
1. DEFINITIONS

      Capitalized terms used herein but not otherwise defined have the meanings
set forth below.

      "COMMENCEMENT DATE" means the initial Process Take-On Date, as defined in
the MSA).

      "ENVIRONMENTAL LAW" shall include local, state and federal laws,
judgments, ordinance, rules, regulations, codes and other governmental
restrictions.

      "EXPIRATION DATE" means the earlier to occur of (i) the MSA Expiration
Date or (ii) the Prime Lease Expiration Date.

      "HAZARDOUS MATERIAL(S)" means any chemical, substance or material or
combination thereof, which (i) is defined as a hazardous substance, hazardous
material, hazardous waste, pollutant, toxic material, or contaminant under any
Environmental Law, (ii) is a petroleum hydrocarbon, including crude oil or any
fraction thereof, (iii) is hazardous to human health or safety or the
environment due to its toxicity, corrosivity, flammability, explosivity,
infectiousness, radioactivity, carcinogenicity or reproductive toxicity, or (iv)
is regulated pursuant to any Environmental Law.

      "MSA EXPIRATION DATE" means the date of termination of all of Exult's
obligations to provide Services under the MSA, including pursuant to any renewal
term and any Termination Assistance Services as defined in the MSA.

      "PREMISES" means the portion of the Building and adjacent parking areas
shown on Exhibit C, comprising approximately 63,000 square feet of the Building
and parking on a first come first served basis.

      "PRIME LEASE EXPIRATION DATE" means the date of expiration of IP's right
of occupancy under the Prime Lease.

      "TERM" of this Sublease means the period commencing on the Commencement
Date and ending on the Expiration Date, subject to renewal, extension and early
termination as set forth herein.

2. LEASE; EARLY USE OF PREMISES

      (a) Lease. For and in consideration of the covenants set forth herein, and
subject to the conditions and upon the terms set forth herein, IP hereby leases
to Exult, and Exult hereby takes and leases from IP, the Premises for the Term.

      (b) Early Use of Premises. From the date hereof until the Commencement
Date, Exult will be provided with reasonable access to the Premises as necessary
and

                                       2
<PAGE>
appropriate to prepare for the commencement of its services under the MSA and
its occupancy under this Sublease. Such access will be without rental payment by
Exult but otherwise subject to the terms and conditions of this Sublease.

3. RENEWAL; EARLY TERMINATION.

      (a) Renewal. On or before the date which is 365 days prior to the
termination date of the Prime Lease, IP shall notify Exult in writing whether IP
will exercise its 5 year renewal option under Section 3.02 of the Prime Lease
(the "OPTION"), or otherwise extend or renew the Prime Lease. Exercise by IP of
the Option or other extension or renewal of the Prime Lease will have the effect
of continuing the Term of this Sublease (if this Sublease is has not then been
terminated) by extending the Prime Lease Expiration Date.

      (b) Early Termination by Exult. Exult may in its discretion terminate this
Sublease before the Expiration Date as follows:

            (i) If IP gives Exult notice causing termination of the MSA for
      convenience or for change of control or for insolvency, then Exult may
      terminate this Sublease by giving IP at least 30 days' advance written
      notice.

            (ii) If Exult gives IP notice of Exult's intention to terminate any
      MSA Component Agreement for failure by IP to pay to Exult amounts owed
      under the MSA, then Exult may also give IP notice of Exult's intention to
      terminate this Sublease. If IP's payment default is cured before
      termination of the MSA Component Agreement, or if for some other reason
      Exult and IP agree to continue the MSA Component Agreement notwithstanding
      the payment default, then Exult's notice to terminate this Sublease will
      lapse and this Sublease will continue according to its terms; if the MSA
      Component Agreement terminates for IP's payment default then this Sublease
      will also terminate pursuant to Exult's notice.

            (iii) If IP notifies Exult of IP's intent to extend the MSA beyond
      its initial ten year term, Exult may terminate this Sublease by giving IP
      at least 90 days' advance written notice. Notwithstanding, such early
      expiration pursuant to this paragraph shall not be effective until the
      expiration of the Primary Term (as such term is defined in the Prime
      Lease) of the Prime Lease.

Written notice of early termination by Exult may be given concurrently with, or
at any time within 90 days after, Exult's receipt of notice under items (i) or
(iii), or Exult's delivery to IP of notice of termination of any MSA Component
Agreement under item (ii). Written notice of termination of this Sublease will
specify the date of termination hereof, which may not be earlier than the
expiration of the requisite notice period set

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

                                       3
<PAGE>
forth in the applicable item above but may be up to 365 days after the date of
the notice.

      (c) Early Termination by IP. IP may not terminate this Sublease before the
Expiration Date except pursuant to the provisions of Article XVIII of the Prime
Lease, as incorporated herein.

4. HOLDING OVER.

      (a) Upon any termination of this Sublease for any reason except for a
breach by Exult, subject to Section 4(b), Exult shall be entitled to remain on
the Premises for a period not to exceed 180 days following the date of such
termination. In addition, in case of early termination of this Sublease by Exult
under Section 3(b), in no event shall the holdover term, plus the period of time
from the notice date to the termination date, exceed 365 days. Exult's tenancy
during any such holdover period shall be pursuant to the terms and conditions of
this Sublease, except that the rent for the holdover period shall be a daily
amount calculated as the quotient obtained by dividing the annual rent in effect
at the time of termination of this Sublease by 365, and shall be payable on the
first day of each calendar month during the holdover term for the days in that
calendar month constituting part of the holdover term.

      (b)   (i) Notwithstanding Section 4(a), if Exult remains on the Premises
after the Prime Lease Expiration Date and after IP vacates the Building in
compliance with the Prime Lease, and if Exult has received Adequate Prime Lease
Termination Notice (as defined below), then Exult will be responsible for all
holdover costs under the Prime Lease, including Exult paying 150% of the rent
for the entire 217,743 square feet of the Building, for the period after the
Prime Lease Expiration Date and IP's vacating the Building in compliance with
the Prime Lease.

            (ii) If Exult remains on the Premises after the Prime Lease
Expiration Date and after IP vacates the Building in compliance with the Prime
Lease, and if Exult has not received Adequate Prime Lease Termination Notice,
then any costs of Exult's holding over in the Premises, including payment of
150% of the rent for the entire 217,743 square feet of the Building, for the
Residual Notice Period (as defined below) will be borne by IP, provided that
Exult will continue to meet its rent and other payment obligations under this
Sublease during the Residual Notice Period. If this Section 4(b)(ii) applies but
Exult holds over beyond the Residual Notice Period, then Exult will be
responsible for all holdover costs under the Prime Lease, including Exult paying
150% of the rent for the entire 217,743 square feet of the Building, for the
period after the Residual Notice Period in compliance with the Prime Lease.

            (iii) For purposes of this Section 4(b), (A) "Adequate Prime Lease
Termination Notice" means that IP has informed Exult in writing at least 365
days before the Prime Lease Expiration Date; and (B) the "Residual Notice
Period" means the number of days, if any, calculated as the difference between
365 and the number of days from the date IP informs Exult in writing of the
Prime Lease Termination Date until

                                       4
<PAGE>
the Prime Lease Termination Date has occurred and IP has vacated the Building in
compliance with the Prime Lease.

      5. RELOCATION ASSISTANCE.

      (a) Extension of Term of Prime Lease. IP and Exult acknowledge that the
base term of the Prime Lease is scheduled to end prior to October 18, 2011. IP
agrees to use commercially reasonable efforts to enter into an amendment of the
Prime Lease such that the end of the base term of the Prime Lease ends on or
after October 18, 2011 (the "Prime Lease Extension").

      (b) Payment on Expiration of Prime Lease. In the event that (i) IP fails
to enter into a Prime Lease Extension, and (ii) IP elects not to exercise its
renewal option under Section 3.02 of the Prime Lease, and as a result of the
foregoing Exult is required to vacate the Premises prior to October 18, 2011, IP
shall reimburse Exult for its Relocation Costs (as defined below) up to a
maximum of [***]*. For the avoidance of doubt, Exult agrees that no payment
under this Section 5(b) shall be payable in the event that a payment under
Section 5(c) is payable.

      (c) Payment on Early Termination after Breach. In the event that Exult is
required to vacate the Premises prior to October 18, 2011 as a result of an
early termination of the Prime Lease arising out of a breach thereof by IP, then
IP shall reimburse Exult for its Relocation Costs up to a maximum of the
Relocation Reimbursement Cap (as defined below).

      (d) Certain Definitions. For purposes of this Section 5, the following
terms shall have the following definitions.

      "Relocation Costs" means Exult's out of pocket expenses incurred in
relocating its operations from the Premises to other facilities selected by
Exult (the "New Location"), including without limitation the following:

      (i) any applicable brokerage fees and commissions incurred in locating and
acquiring the New Location;

      (ii) any costs and fees for permits and applications required in
connection with preparation or occupancy of the New Location;

      (iii) any costs of architects, planners, contractors, and materials
incurred in building out the New Location to specifications and capabilities
comparable to the Premises (provided that if Exult builds out the New Location
to specifications and capabilities better than the Premises, then IP shall pay
the portion of the cost thereof equal to what the cost would have been to build
out the New Location to specifications

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

                                       5
<PAGE>
and capabilities comparable to the Premises and Exult shall pay any amounts in
excess thereof);

      (iv) any costs of moving personal property of Exult to the New Location
and installing same in the New Location; and

      (v) the excess, if any, by which the rental rate for the New Location
exceeds the rent payable by Exult under this Sublease, for the period from
termination of this Sublease until the MSA Expiration Date, provided that if the
rental rate for the New Location exceeds what the rental rate would be at that
time for the Premises, then IP will not be responsible for any portion of such
excess.

      "Relocation Reimbursement Cap" means [***]* as of the date hereof,
increased by [***]* as of January 1 of each year beginning January 1, 2003.

6. RENT

      (a) Fixed Rent. Exult covenants and agrees to pay to IP at the office of
IP or at such other place as IP may designate, fixed annual base rent of [***]*
(based upon the Premises being 63,000 square feet and [***]* per square foot)
payable in monthly installments of [***]*, in advance commencing on the
Commencement Date and continuing thereafter on the first day of each month
during the Term [***]* when the annual base rent shall be adjusted to [***]*
(based upon the Premises being 63,000 square feet and [***]* per square foot)
payable in monthly installments of [***]*. If IP exercises the Option then for
the duration of the First Extended Term (as defined in Section 3.02 of the Prime
Lease) or until earlier termination of this Sublease, the annual base rent shall
be the product of 63,000 and the square foot rate IP shall pay Landlord for the
First Extended Term. All annual base rent shall be payable without notice or
demand. Payment for partial months during the Term shall be prorated on daily
basis, based on a thirty (30)-day month. Notwithstanding the foregoing, in the
event that IP negotiates a rent reduction with Landlord, the rent pursuant to
this paragraph shall be the product of 63,000 and the dollar per square foot
rate IP shall pay Landlord pursuant to Article IV of the Prime Lease and any
amendment thereto.

      (b) Additional Rent

            (i) Exult shall pay to IP at the office at IP or at such other place
      as IP shall designate, additional rent as follows: Exult's proportionate
      share of Operating Costs specified in Sections 5.01, 5.02,6.01, 6.03, and
      7.03 of the Prime Lease and its proportionate share of Utilities specified
      in Article XI of the Prime Lease. For purposes of this Sublease, Exult's
      proportionate share shall be 28.93% (63,000 sf/217,743 sf). However, Exult
      will not be required to make payment to IP in respect of any utilities or
      maintenance or operating costs that are separately metered or billed to
      and paid by Exult and subject to Landlord's approval, Exult

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* Confidential information has been omitted.

                                       6
<PAGE>
      may cause the Premises to be metered separately for any utilities, and
      thereafter pay only its separately metered utility charges and not any
      utility charges for portions of the Building other than the Premises.

            (ii) In the event IP shall be charged for any other Landlord
      services that may be imposed pursuant to the Prime Lease as a result of
      any act or omission of Exult, Exult covenants and agrees to pay all such
      amounts to IP as additional rent.

            (iii) It is intended that the sums payable pursuant to this
      Paragraph 6(b) ("ADDITIONAL RENT") shall be paid at the times and
      according to the terms that IP is obligated to make payments under
      Sections 6.01 and 6.03 of the Prime Lease. Accordingly, IP shall promptly
      furnish Exult with copies of all statements received from Landlord in
      connection with any such charges and all other supporting documentation
      reasonably requested by Exult, and IP shall invoice Exult for Additional
      Rent contemporaneously therewith. As to Section 7.03, such sums are to be
      paid upon Exult's receipt of an invoice from IP. Exult shall pay
      Additional Rent within thirty (30) days following Exult's receipt of an
      invoice from IP setting forth the amounts then hereunder.

      (c) Payment. Exult shall pay the rent and Additional Rent to IP at such
address and to the attention of such person as IP may specify from time to time.

      7. CONDITION OF PREMISES; REPRESENTATIONS AND WARRANTIES

      (a) Inspection Report. Exult represents that it has made a thorough
examination and inspection of the Premises and is familiar with the condition
thereof. A copy of Exult's inspection report is attached as Exhibit D
("INSPECTION REPORT") and has been reviewed and approved by IP. Notwithstanding
anything to the contrary in this Sublease, the Prime Lease, or the IDB Lease, at
the termination or expiration of this Sublease, Exult shall deliver the Premises
in the same condition as shown in the Inspection Report, ordinary wear and tear
and casualty or condemnation loss excepted. Exult agrees that it enters into
this Sublease without any representations, warranties or statements by IP, its
agents, representatives, employees, servants, brokers or any other person as to
the present or future condition of the Premises, or the use that may be made of
the Premises or any improvements thereon or the Building, except as expressly
set forth in this Sublease.

      (b) Premises As Is. It is further agreed that Exult shall accept the
Premises "as is" in their condition on the Commencement Date, and IP shall have
no obligation to improve or alter the Premises for Exult's use. Except as
expressly set forth in this Sublease, IP shall have no liability by reason of
the condition of the Premises, including but not limited to any defect or any
limitation on its use.

      (c) Certain Agreements of IP.

                                       7
<PAGE>
            (i) IP represents to Exult that as of the date hereof, the Prime
      Lease is in full force and effect and has not been amended, modified,
      terminated or otherwise altered;

            (ii) IP represents to Exult that the termination date of the Prime
      Lease is March 31, 2010;

            (iii) IP represents to Exult that IP is not aware of, and has
      received no notice of, the occurrence of any default, event of default or
      event that with the giving of notice, the passage of time or both would
      constitute an event of default, under the Prime Lease on the part of the
      Landlord or IP;

            (iv) IP represents to Exult that all necessary approvals and
      consents have been obtained by IP for the consummation of the transactions
      contemplated by this Sublease;

            (v) IP shall not take any action to amend, modify or otherwise alter
      the terms and provisions of the IDB Lease without the prior written
      consent of Exult, which shall not be unreasonably withheld, if the same
      would have any material effect on the Premises or on Exult's rights or
      obligations under this Sublease;

            (vi) IP shall not take any action to amend, modify or otherwise
      alter the terms and provisions of the Prime Lease which would materially
      affect Exult's occupancy of the Premises or increase Exult's rent or
      Additional Rent without the prior written consent of Exult, which consent
      shall not be unreasonably withheld.

            (vii) IP shall neither do nor permit anything to be done that would
      cause the Prime Lease to be terminated or forfeited by reason of any right
      of termination or forfeiture reserved or vested in the Landlord under the
      Prime Lease;

            (viii) IP has not previously used, stored, generated or disposed of,
      and shall not in the future use, store, generate or dispose of, any
      Hazardous Materials in, on, under, or about the Premises or Building. IP
      has not violated and shall not at any time in the future violate any
      Environmental Law in connection with its occupancy under the Prime Lease;
      and

            (ix) IP has obtained Landlord's consent to sublease the Premises to
      Exult.

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

                                       8
<PAGE>
8. APPLICABLE ARTICLES OF PRIME LEASE

      (a) Prime Lease. (i) Except for the Excluded Terms and Modified Terms
(defined below) and except as otherwise provided in this Sublease, Exult and IP
hereby assume and agree to perform, observe and comply with all of the terms and
conditions of the Prime Lease, and the terms of the Prime Lease are incorporated
by reference herein, as if IP were the "Landlord" thereunder and Exult were the
"Tenant" thereunder and the "Premises" as referenced in the Prime Lease were the
Premises as defined in this Sublease. To the extent the terms of the Prime Lease
as applicable to this Sublease as provided in the preceding sentence are
inconsistent with the express terms of this Sublease, this Sublease shall
govern. Rights and obligations under the Prime Lease that are applicable both to
Exult's tenancy of the Premises hereunder and IP's tenancy of the remainder of
the premises under the Prime Lease will be shared 28.93% by Exult and 71.07% by
IP, consistent with their respective proportionate shares of the Premises under
the Prime Lease. Exult and IP shall cooperate in pursuing rights and remedies of
Tenant under the Prime Lease, insofar as such rights and remedies affect or
relate to the Premises or this Sublease. IP shall provide notice to Exult of all
actions, assertions of rights, and pursuit of remedies by IP under the Prime
Lease, and shall provide to Exult copies of all communications with Landlord
under the Prime Lease to the extent that such actions, rights, remedies and
communications affect or relate to the Premises or this Sublease.

(b) Excluded Terms,

      Notwithstanding the foregoing, the following provisions of the Prime Lease
(collectively, the "EXCLUDED TERMS") shall not be incorporated by reference in
this Sublease: Articles II (Construction), III (Term), IV (Base Rent), XII
(Assignment and Subletting), 13.06 (Waiver of Subrogation), XIV (Damage or
Destruction), XV (Condemnation), XVII (Holding Over), XIX (Landlord's Default),
XXIII (Notices) 24.10 (Brokerage), 24.11 (Landlord Limited Liability), and XXV
(Special Provision) (except for Article 25.02 which shall be applicable).

(c) Modified Terms.

      The following sections of the Lease shall be incorporated by reference as
modified in the manner set forth below (collectively, the "MODIFIED TERMS"):

            (i) With respect to Articles 9.01 and 9.02 (Alterations and Signage)
      Exult shall obtain Landlord's and IP's prior written consent.

            (ii) With respect to Article VIII (Landlord's Obligations)
      "Landlord" as used therein shall mean Landlord.

            (iii) With respect to Article X (Inspection) "Landlord" as used
      therein shall mean Landlord and IP.

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

                                       9
<PAGE>
            (iv) With respect to Articles 13.01 (Casualty Insurance), 13.02
      (Loss of Rent Insurance) and 13.03 (Landlord's Liability Insurance)
      "Landlord" as used therein shall mean Landlord and not IP.

            (v) With respect to Article 13.04 (Tenant's Liability Insurance)
      "Landlord" as used therein shall mean Landlord and IP.

            (vi) With respect to Article 16.01 (Liability) "Landlord" as used
      therein shall mean Landlord and IP.

      (d) Right of Entry. In any case where the Landlord reserves the right to
enter the Premises, said right shall inure to the benefit of the Landlord as
well as to IP.

      (e) Limits on IP Obligations. Except as set forth in this Sublease, IP
shall not be obligated to perform, and shall not be liable for the performance
or default by Landlord of, any of the obligations of Landlord under the Prime
Lease. Except for those instances in which the Sublease provides that IP shall
have the obligations of the Landlord or IP has received services or is entitled
to rights or remedies from Landlord but has not passed them through to Exult, or
IP has failed in good faith to pursue such services, rights and remedies to the
extent of its entitlement thereto under the Prime Lease, or as otherwise set
forth in this Sublease, (i) Exult shall have no claim against IP by reason of
any default upon the part of Landlord; (ii) IP shall have no obligation at any
time to render any services to Exult or to the Premises of any nature
whatsoever, or to expend any money for the Premises, including but not limited
to, preservation, reconstruction or repair of the Premises; (iii) Exult agrees
to look solely to Landlord for the performance of any obligations by Landlord or
the furnishing of any services to which IP may be entitled under the Prime
Lease; (iv) if Landlord fails to perform an obligation or provide a service
which Landlord is required by the Prime Lease to perform or provide, then except
for those instances in which the Sublease provides that IP shall have the
obligations of the Landlord, IP's sole obligation is to cooperate with Exult,
and to use reasonable efforts, without, however, incurring any liabilities or
out-of-pocket expenses in excess of amounts that IP would otherwise incur or
expend on its own behalf under the Prime Lease, by taking whatever action Exult
shall reasonably request, to enforce for the benefit of Exult the obligations of
Landlord to IP under the Prime Lease insofar as they relate to the Premises. By
virtue of this subsection, in connection with the incorporation by reference of
the Prime Lease the term "Landlord shall", "Landlord will", "Landlord agrees" or
similar language shall be deemed, for the purposes of this Sublease, except for
those instances in which the Sublease provides that IP shall have the
obligations of the Landlord, to mean "IP shall use reasonable efforts, without,
however, incurring any material liabilities or out-of-pocket expenses in excess
of amounts IP would have expended on its own behalf under the Prime Lease, to
cause Landlord" whenever such a modification is required so that an incorporated
provision reflects the agreement of the parties hereto as expressed in this
paragraph.

      Notwithstanding any of the foregoing, in the event Landlord fails to
perform any of its maintenance repair obligations pursuant to Article 8.01 of
the Prime Lease, IP

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

                                       10
<PAGE>
shall complete such maintenance or repairs pursuant to the terms of that
Article.

      (f) Reimbursement of IP. All reasonable out-of-pocket expenses of IP
taking actions requested by Exult to obtain the performance of Landlord's
obligations for the benefit of Exult that are in excess of amounts IP would have
expended on its own behalf under the Prime Lease shall be reimbursed by Exult
within thirty (30) days from written demand by IP.

      (g) Exult Compliance with Prime Lease. With respect to its occupancy of
the Premises under this Sublease, Exult agrees not to do or suffer or permit
anything to be done which would (i) violate any term or condition of the Prime
Lease; (ii) cause the Prime Lease to be terminated or forfeited; (iii) violate
any certificate of occupancy affecting the Premises or the building in which the
Premises are located; (iv) increase the insurance premiums or result in the
cancellation of insurance covering the Premises; or (v) violate any laws,
statutes, ordinances, rules, orders or regulations. However, Exult's obligations
under this provision do not extend to the Excluded Provisions and Exult shall
have no obligation or liability under this Sublease or otherwise for any act or
omission of IP, its employees, agents, independent contractors, successors or
assigns.

      (h) Alterations. Any alterations (as defined in Article 9.01 of the Prime
Lease) desired to be made by Exult, are subject to the terms of Article 9.01 of
the Prime Lease. Exult shall also obtain IP's prior written consent to the
making of any alterations, changes or additions, notwithstanding the cost
thereof. IP agrees, subject to the Prime Lease, to consider such request
concurrently with the Landlord, provided Exult makes concurrent requests for
such consent to Landlord and to IP. Exult shall, provided Landlord cooperates
with Exult, contact Landlord directly for the Landlord's consent, if required.
In securing IP's consent to such alterations, changes or additions, Exult shall
only be required to submit to IP those plans, specifications and information
also submitted to Landlord to secure its consent. Nothing contained herein shall
relieve Exult from the obligation to obtain Landlord's consent with respect to
any such alterations, changes or additions as provided in the Lease.

      Notwithstanding anything to the contrary in the preceding paragraph, it is
Exult's intention to use the Premises as a multi-client facility, and IP
recognizes that converting the Premises to multi-client use will require certain
modifications to the Premises. Any modifications to the Premises proposed by
Exult must comply with the Prime Lease and all applicable laws and regulations
and conform to applicable requirements imposed by regulatory authorities.
Further, in designing and implementing the modifications, Exult must consult
with IP and Landlord, and the design and implementation of the modifications
will be subject to the approval of IP. Subject to Exult's compliance with the
preceding two sentences, IP will not unreasonably withhold its consent to such
modifications.

      (i) Cure of Exult Default by IP. If Exult shall default in the performance
of any of its obligations under this Sublease, other than its obligation to pay
rent to IP, IP, without

                                       11
<PAGE>
being under any obligation to do so and without thereby waiving such default,
shall have the right, upon reasonable notice (except in an emergency or where
delay could result in a default under the Prime Lease), to cure such default for
the account and at the expense of Exult without prior notice in the case of
emergency and, in all other cases, upon five (5) business days' written notice
by IP to Exult. IP shall have the right to enter the Premises upon reasonable
advance notice to Exult at such times and to the extent as may be reasonably
necessary to exercise its right to cure Exult's defaults as provided above.

      (j) Notices Related to the Premises. Exult shall promptly furnish IP with
copies of all notices relating to the Premises which Exult shall receive from
Landlord, and IP shall promptly furnish Exult with copies of all notices
relating to the Premises which IP receives from Landlord.

      (k) IP Consents. Exult agrees that in each instance where a provision of
the Prime Lease (as incorporated by reference herein) requires the consent or
approval of Landlord, whether prior to Exult taking any action or otherwise, it
shall be a condition precedent to the taking of such action or otherwise that
the prior written consent or approval of both Landlord and IP shall have been
obtained. Exult agrees that IP shall not have any duty or responsibility with
respect to obtaining the consent or approval of Landlord when the same is
required, other than (i) the transmission by IP to Landlord of Exult's request
for such consent or approval and (ii) IP's cooperation with Exult to obtain such
approval or consent provided that such cooperation does not require IP to incur
any out-of-pocket expense or to make any material performance or undertaking. IP
shall not be required to give any consent or approval provided for hereunder
because Landlord has given consent or approval with respect to the same matter.
Any consent or approval required to be given by IP under this Sublease shall not
be unreasonably withheld, conditioned or delayed.

9. IDB LEASE OBLIGATIONS

      (a) IP Obligations. Subject to Exult's obligations under Section 9(b), (i)
IP will be responsible for ascertaining and meeting the requirements of the
Pilot program referenced in the IDB Lease; (ii) IP will fulfill its obligations
as "Applicant" under the PILOT Program and as a tenant under the IDB Lease and
the Application referenced therein; and (iii) IP will reimburse to Exult all
costs incurred by Exult as a result of IP's breach of its obligations under this
Section 9(a).

      (b) Exult Obligations. In support of IP's employment commitments under the
Pilot program referenced in the IDB Lease, Exult will comply with its
commitments under the MSA regarding employment in connection with the Premises.
IP shall inform Exult of all other requirements under the IDB Lease that may be
applicable to Exult pursuant to this Section 9(b). If and to the extent that
requirements imposed upon IP specifically pursuant to the IDB Lease relate
specifically to the Premises, and IP has notified Exult thereof in writing,
Exult will comply with such requirements at Exult's expense. In addition, (i)
Exult will use reasonable efforts to assist IP in complying with

                                       12
<PAGE>
requirements under the IDB Lease referenced in the IDB Lease that do not relate
specifically to the Premises; and (ii) Exult will not take any action that Exult
would otherwise be entitled to take but that IP has notified Exult would cause
IP to be in breach of its obligations under the IDB Lease or the Pilot program;
provided, however, that IP will reimburse Exult for any loss or diminution of
Exult's rights or quiet enjoyment, or additional costs or damages incurred by
Exult under this Sublease as a result of Exult's compliance with this sentence,
so long as Exult is not in default of any obligations under this Sublease. Exult
will have the rights described in Section 3.6(e) of the IDB Lease applicable to
sub-sublessees, subject to the obligations and limitations set forth in such
Section 3.6(e), and will have the benefit of all cure periods available under
the IDB Lease that are applicable to obligations that Exult is required under
this Section 9(b) to undertake.

10. ADDITIONAL PROVISIONS

      (a) Use. The Premises may be used only to perform the kinds of services
contemplated by the MSA and related tasks and processes. Exult may expand the
scope of operations of the Premises beyond that in existence as of the date
hereof in the Employee Service Center, including without limitation to serve
clients other than IP from the Premises provided that the use of the Premises
shall be in compliance with the Prime Lease.

      (b) Exult Indemnity. Exult agrees to indemnify and hold IP, its agents,
employees and officers, and their successors and assigns, harmless from and
against all actions, claims, demands, judgments, damages, liabilities, costs and
expenses whatsoever (including, without limitation, reasonable attorneys' fees
and disbursements) arising out of any violation caused or permitted by Exult,
its contractors, customers, agents, servants, employees or invitees, of any of
the terms, covenants or conditions of this Sublease or the Prime Lease to the
extent incorporated by this Sublease or the IDB Lease, or arising out of or
incurred, upon the execution of this Sublease on account of any acts or
omissions of Exult, its agents, contractors, customers, servants, employees or
invitees occurring in, on or about the Premises. In case any action or
proceeding is brought against IP by reason of any of the above, IP shall give
written notice thereof to Exult, and Exult shall resist or defend such action by
counsel reasonably satisfactory to IP at the sole cost and expense of Exult. IP
shall cooperate in Exult's defense, at Exult's sole cost and expense. If Exult
fails to resist or defend the same, IP may do so or may, after notice to Exult,
compromise the same, and, in such event, Exult shall pay IP as additional rent
hereunder all payments made by and expenses and reasonable attorneys' fees and
disbursements of IP. The obligations of Exult pursuant to this paragraph 10(b)
shall survive the expiration or other termination of this Sublease.

      (c) IP Indemnity. IP agrees to indemnify and hold Exult, its agents,
employees and officers, and their successors and assigns, harmless from and
against all actions, claims, demands, judgments, damages, liabilities, costs and
expenses whatsoever (including, without limitation, reasonable attorneys' fees
and disbursements) arising out

                                       13
<PAGE>
of any violation caused or permitted by IP, its contractors, customers, agents,
servants, employees or invitees, of any of the terms, covenants or conditions of
this Sublease or the Prime Lease or the IDB Lease, or arising out of or
incurred, from and after the Commencement Date of this Sublease on account of
any acts or omissions of IP, its agents, contractors, customers, servants,
employees or invitees occurring in, on or about the Premises or Building. In
case any action or proceeding is brought against Exult by reason of any of the
above, Exult shall give written notice thereof to IP, and IP shall resist or
defend such action by counsel reasonably satisfactory to Exult at the sole cost
and expense of IP. Exult shall cooperate in IP's defense, at IP's sole cost and
expense. If IP fails to resist or defend the same, Exult may do so or may, after
notice to IP, compromise the same, and, in such event, IP shall pay or reimburse
to Exult promptly after Exult's demand therefor all payments made by and
expenses and reasonable attorneys' fees and disbursements of Exult. The
obligations of IP pursuant to this paragraph 10(b) shall survive the expiration
or other termination of this Sublease.

      (d) Removal of Certain Equipment. Subject to the terms of the MSA, when
Exult vacates the Premises, it shall remove and take with it all specialized
equipment installed or purchased by Exult in connection with its use of the
Premises, including without limitation computer room installations and related
HVAC systems, telephone and computer equipment, and cabling, regardless of
whether such equipment constitutes fixtures, provided that Exult repairs any
damages caused by removal.

      (e) Default by IP. If any default by IP under this Sublease continues for
more than thirty (30) days after Exult delivers written notice of such default
to IP, then Exult may (i) terminate this Sublease, (ii) avail itself of any
other rights or remedies available to it under this Sublease, at law or in
equity, and/or (iii) recover all of its costs (including without limitation
reasonable attorneys fees) incurred in enforcing this Sublease or its rights
hereunder from IP.

      Notwithstanding the foregoing, IP shall not be in default under this
Sublease if the nature of its obligation is such that more than thirty (30) days
are reasonably required for its performance and IP commences its performance
within such thirty (30) day period and thereafter diligently pursues same to
completion.

11. QUIET ENJOYMENT

      IP covenants that Exult, on paying the rent and performing all the terms,
covenants and conditions of this Sublease, may peacefully and quietly have, hold
and enjoy the Premises for the Term, but subject to the exceptions, reservations
and conditions hereof. All entrances, exits, approaches and means of entrance
and approach, and all access to light and air now enjoyed by the Premises, shall
be and remain intact and uninterrupted by any act of IP during the term of this
Sublease.

                                       14
<PAGE>
12. WAIVER OF SUBROGATION

      Each party agrees to use its reasonable efforts to include in each of
their insurance policies a waiver of the insurer's right of subrogation against
the other party. If such waiver shall not be, or shall cease to be, obtainable
without additional charge or at all, the insured party shall so notify the other
party promptly after learning thereof. In such case, if the other party shall so
elect and shall pay the insurer's additional charge therefor, such waiver,
agreement or permission shall be included in the policy, or the other party
shall be named as an additional insured in the policy.

13. BROKERAGE

      IP and Exult each represents that they have dealt with no real estate
broker in connection with this transaction. Each party hereto agrees to
indemnify and save the other harmless against any claims, losses or damages
resulting from any breach of its representations hereunder.

14. SUBORDINATION

      Exult acknowledges that this Sublease is subject and subordinate to the
Prime Lease and, to the extent that the Prime Lease is also subject and
subordinate to the below-described instruments, this Sublease shall be subject
and subordinate to all ground and underlying leases and all mortgages which
might now or hereafter affect the Prime Lease, the leasehold estate thereby
created or the real property of which the Premises form a part, and to any and
all renewals, modifications, consolidations, replacements and extensions
thereof.

15. ASSIGNMENT AND SUBLEASING

      Exult shall have no right to assign this Sublease or sublet all or any
portion of the Premises, or permit the same to be used by any person or entity
other than Exult, without the prior written consent of IP, except that with
notice to IP but without IP's approval Exult may assign its rights and
obligations under this Sublease to an entity controlling, controlled by or under
common control with Exult which expressly assumes Exult's obligations hereunder,
provided that Exult guarantees such entity's full performance of such entity's
obligations pursuant to this Sublease, and subject to any Landlord approval
required under the Prime Lease. Exult may upon notice to IP assign its rights
and obligations under this Sublease in connection with a Change in Control, as
defined in the MSA. This Sublease shall be binding upon, and inure to the
benefit of, the successors and assigns (to the extent permitted) of IP and
Exult.

16. INSURANCE

      Exult shall, at its sole cost and expense, obtain and keep in effect
during the term of this Sublease the insurance required under Article 13.04 of
the Prime Lease and shall name Landlord and IP as additional insureds, provided
that such Insurance

                                       15
<PAGE>
need only apply to the Premises under this Sublease and Exult's use thereof.
Prior to the commencement of the term of this Sublease, Exult shall provide to
IP certificates evidencing such insurance and including an undertaking by the
carrier not to cancel the insurance or reduce the coverage limits changed
without first giving thirty (30) days prior written notice to IP. No such
cancellation, modification or change shall affect Exult's obligation to maintain
the insurance coverage required by this Sublease. Exult shall be responsible for
payment of any and all deductibles from insured claims under its policies. The
coverage afforded under any insurance policy obtained by Exult pursuant to this
Sublease shall be primary coverage regardless of whether or not Landlord and IP
have any similar coverage. Exult shall not proceed under this Sublease until
evidence of such insurance has been delivered to Landlord and IP. During the
performance of this Sublease, Exult shall provide, IP, within thirty (30) days
after each renewal, with evidence of renewal of such insurance. Exult may not
self-insure any of the insurance coverage required by this Sublease without
prior written consent of IP. The maintenance of such insurance shall not in any
way limit the liability of Exult to Landlord and IP under the Sublease.

17. NOTICES

      All notices, requests, demands, letters, waivers and other communications
required or permitted to be given under this Sublease shall be deemed to have
been duly given if (a) delivered personally, (b) mailed, certified or registered
mail, return receipt requested, with postage prepaid, (c) sent by next-day or
overnight mail or delivery or (d) sent by fax, directed to the other party at
the address set forth below, or to such other address as the party may indicate
by written notice to the other party. All such notices, requests, demands,
letters, waivers and other communications shall be deemed to have been received
(i) if by personal delivery, on the day after such delivery, (ii) if by
certified or registered mail, on the fifth business day after the mailing
thereof, (iii) if by next-day or overnight mail or delivery, on the day
delivered or (iv) if by fax, on the day on which such fax or email was sent, if
receipt is confirmed and provided that a copy if also sent by one of the other
permitted means of giving notice.

If to IP:                  International Paper Company
                           6400 Poplar Avenue
                           Memphis, TN 38197
                           [***]*

With a copy to:            International Paper Company
                           3 Paragon Drive
                           Montvale, NJ 07645
                           [***]*

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

                                       16
<PAGE>
If to Exult:               Exult, Inc.
                           4 Park Plaza, Suite 1000
                           Irvine, CA 92614
                           [***]*

Either party may, by notice in writing, direct that future notices or demands be
sent to a different address.

18. INTEGRATION

      This Sublease contains all of the terms and conditions regarding the
sublease of the Premises, and any agreement hereafter made shall be ineffective
to change, modify or discharge it in whole or in part unless such agreement is
in writing and signed by the party against whom enforcement of the change,
modification or discharge is sought.

19. MEMORANDUM OF SUBLEASE

      Neither IP nor Exult shall execute or record a memorandum of this Sublease
without the consent of IP and Landlord.

      IN WITNESS WHEREOF, IP and Exult have hereunto set their hands on said day
and year first above written.

                                          INTERNATIONAL PAPER COMPANY
Witness:

__________________________                By:____________________________

                                          EXULT, INC.
Witness:

__________________________                By:____________________________
                                          Name: _________________________
                                          Title: ________________________

                                       17
<PAGE>
                                   EXHIBIT "A"

                                   PRIME LEASE

<PAGE>

================================================================================

                                 LEASE AGREEMENT

                                     BETWEEN

                              AMB PROPERTY II, L.P.

                                  as Landlord,

                                       and

                           INTERNATIONAL PAPER COMPANY

                                    as Tenant

                                FOR THE PREMISES

                     Willow Lake Business Park Building Ten

================================================================================

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                           PAGE
<S>                                                                                        <C>
                             ARTICLE I
                             DEFINITIONS.....................................................1

                             ARTICLE II
                             CONSTRUCTION....................................................7

2.01      Construction Drawings..............................................................7
2.02      Tenant Review of Buildout Cost.....................................................7
2.03      Commencement of Construction.......................................................8
2.04      Tenant Changes to Construction Drawings............................................8
2.05      Inspections by Tenant..............................................................8
2.06      Substantial Completion.............................................................9
2.07      Tenant Set Up Work.................................................................9
2.08      As Built Plans.....................................................................9
2.09      Commencement Agreement.............................................................9
2.10      Landlord's Inability to Complete Interior...........................................
          Modifications Due to Tenant Delay..................................................9
2.11      Completion in Phases..............................................................10
2.12      Construction Defects..............................................................11

                             ARTICLE III
                             TERM...........................................................11

3.01      Primary Term......................................................................11
3.02      Option to Extend..................................................................11

                             ARTICLE IV
                             BASE RENT......................................................12

4.01      Base Rent During Primary Term.....................................................12
4.02      Base Rent During First Extended Term..............................................12
4.03      Time for Payment of Rent..........................................................12
4.04      Change in Base Rent Attributable to.................................................
          Change in Landlord's Buildout.....................................................12
4.05      Rent for Space Currently Sublet...................................................13

                             ARTICLE V
                             TAXES..........................................................13

5.01      Franchise and Sales Taxes.........................................................13
5.02      Impositions.......................................................................13
5.03      Tenant's Contest of Impositions...................................................13
5.04      P.I.L.O.T. Program................................................................14

                             ARTICLE VI
                             OPERATING COSTS................................................14

6.01      Tenant's Proportionate Share of
</TABLE>

                                       i
<PAGE>

<TABLE>
<S>                                                                                        <C>
          Operating Costs...................................................................14
6.02      Audit of Operating Costs..........................................................14
6.03      Allocation of Common Operating Costs..............................................15

                             ARTICLE VII
        TENANT'S USE AND MAINTENANCE OF THE PREMISES........................................15

7.01      Purpose...........................................................................15
7.02      Repairs and Maintenance...........................................................15
7.03      HVAC Maintenance..................................................................16
7.04      Compliance With Laws..............................................................16
7.05      End of Term.......................................................................17

                             ARTICLE VIII
                             LANDLORD'S OBLIGATIONS.........................................17

8.01      Landlord's Repair Obligation......................................................17
8.02      Covenant of Quiet Enjoyment.......................................................18

                             ARTICLE IX
                             ALTERATIONS AND SIGNAGE........................................18

9.01      Alterations.......................................................................18
9.02      Signage...........................................................................19

                             ARTICLE X
                             INSPECTION.....................................................19

                             ARTICLE XI
                             UTILITIES......................................................20

                             ARTICLE XII
                             ASSIGNMENT AND SUBLETTING......................................20

12.01     Requirement of Landlord Consent...................................................20
12.02     Transfers to Affiliates...........................................................20
12.03     Notice of Proposed Assignment.....................................................20
12.04     Transfer Premium..................................................................21

                             ARTICLE XIII
                             INSURANCE......................................................21

13.01     Casualty Insurance................................................................21
13.02     Loss of Rent Insurance............................................................21
13.03     Landlord's Liability Insurance....................................................21
13.04     Tenant's Liability Insurance......................................................21
13.05     Evidence of Insurance.............................................................21
13.06     Waiver of Subrogation.............................................................22

                             ARTICLE XIV
                             DAMAGE OR DESTRUCTION..........................................22

                             ARTICLE XV
</TABLE>

                                       ii
<PAGE>

<TABLE>
<S>                                                                                        <C>
                             CONDEMNATION...................................................22

                             ARTICLE XVI
                             INDEMNIFICATION................................................23

16.01     Liability.........................................................................23
16.02     Hazardous Materials...............................................................24
16.03     Environmental Report at Lease Expiration..........................................24

                             ARTICLE XVII
                             HOLDING OVER...................................................25

                             ARTICLE XVIII
                             TENANT'S DEFAULT...............................................25

18.01     Events of Default.................................................................25
18.02     Landlord's Remedies Upon an Event of Default......................................26

                             ARTICLE XIX
                             LANDLORD'S DEFAULT.............................................27

14.01     Tenant's Remedies.................................................................27
14.02     Landlord's Failure to Pay Mortgage Debt...........................................27

                             ARTICLE XX
                             ATTORNEY FEES..................................................28

                             ARTICLE XXI
                             SUBORDINATION..................................................28

                             ARTICLE XXII
                             MECHANIC'S LIENS...............................................29

                             ARTICLE XXIII
                             NOTICES........................................................29

                             ARTICLE XXIV
                             MISCELLANEOUS..................................................31

24.01     Gender............................................................................31
24.02     Binding Effect....................................................................31
24.03     Captions..........................................................................31
24.04     Entire Agreement..................................................................31
24.05     Changes in Writing................................................................31
24.06     Obligations Survive Expiration....................................................31
24.07     Partial Invalidity................................................................32
24.08     Estoppel Certificates.............................................................32
24.09     Memorandum of Lease...............................................................32
24.10     Brokerage.........................................................................32
24.11     Landlord Limited Liability........................................................32

                             ARTICLE XXV
                             SPECIAL PROVISION..............................................33
</TABLE>

                                      iii
<PAGE>

<TABLE>
<S>                                                                                        <C>
25.01     Drinking Water....................................................................33
25.02     Amenities.........................................................................33
25.03     Termination of Building Eight Leases..............................................33
25.04     Contingency.......................................................................33
</TABLE>

                              SCHEDULE OF EXHIBITS

<TABLE>
<S>                                                         <C>
Legal Description of Building...............................Exhibit A
Legal Description of
    Additional Parking Lot..................................Exhibit B
Floor Plan of Building .....................................Exhibit C
</TABLE>

                                       iv
<PAGE>

                                      LEASE

        THIS LEASE is made as of the _____ day of ______________, 1999 between
AMB Property II, L.P., a Delaware limited partnership (hereinafter called
"Landlord"); and International Paper Company, a New York corporation
(hereinafter called "Tenant").

                                   BACKGROUND

        The Building (as hereinafter defined) is currently occupied and
constructed for warehouse and distribution uses and Tenant currently sublets
approximately 17,743 s.f. of space within the Building from the current tenant
of the Building. The parties propose that as soon as Landlord is able to obtain
occupancy of the Building from the current tenant pursuant to a lease
termination agreement to be entered in to with the current tenant, that Landlord
will improve the Building to convert it from a warehouse distribution use to an
office building use to be occupied by Tenant pursuant to the terms and
conditions of this Lease and that at the termination of this Lease, Landlord
then intends to convert the Building back to a warehouse and distribution use.

                                      TERMS

        For and in consideration of the rentals hereinafter reserved and the
covenants and agreements herein contained, Landlord does hereby lease to Tenant,
and Tenant does take and lease from Landlord the real property and improvements
hereinbelow described for the term indicated at the rentals and upon and subject
to the terms and conditions stated herein.

                                    ARTICLE I
                                   DEFINITIONS

        The terms defined in this Article shall, for all purposes of this Lease
and all future agreements which may become supplemental thereto, have the
meanings herein specified.

        "Additional Parking Lot" means the parking lot to be constructed as part
of the Interior Modifications on the land legally described in Exhibit B annexed
hereto.

        "Affiliate" means a foreign or domestic affiliate of Tenant's as defined
in Rule 405 promulgated under the Securities Act of 1933, as amended.

        "Architect" means Denton Architecture or some other architect mutually
agreed upon between Landlord and Tenant.

        "Building" means that certain building having a property

                                       1
<PAGE>

address of 4049 Willow Lake Boulevard, Willow Lake Business Park, Memphis,
Tennessee 38118, which Building is sometimes referred to by the Landlord as
Willow Lake Business Park Building Ten. The Building is comprised of
approximately 217,743 rentable square feet of space and the Building is legally
described in Exhibit A annexed hereto.

        "Buildout Cost" means the cost of the design (including architecture and
engineering), permitting and legal work, supervision and management and
construction of the Interior Modifications. The Buildout Cost includes the
Buildout Cost with respect to the construction of the Additional Parking Lot and
the Buildout Cost also includes all costs associated with the installation of a
traffic signal at the Development's main entrance including the cost of the
traffic signal and any impact or mitigation fees.

        "Commencement Date" means the date that the Interior Modifications have
been Substantially Completed, subject, however, to any accelerations due to a
Tenant Delay.

        "Computer Support Systems" means any additional fire suppressant system
in excess of normal and customary office use, any emergency generator, and any
uninterruptible power supply.

        "Construction Drawings" means, with respect to the Interior
Modifications, mutually agreed upon plans and specifications.

        "Development" means the Building together with all other land and
improvements within Willow Lake Business Park.

        "Effective Date" means the date this Lease is signed by Landlord.

        "Events of Default" means those events of default specifically
identified in this Lease.

        "Expiration Date" means the last day of the tenth Lease Year. If the
term of this Lease has been extended pursuant to an option to extend granted to
Tenant under this Lease, then the Expiration Date will mean the last day of the
extended term.

        "General Contractor" means Grinder Taber and Grinder, Inc. or some other
general contractor mutually agreed upon between Landlord and Tenant.

        "Hazardous Material" means any hazardous or toxic material, substance or
waste which is defined by those or similar terms or is regulated as such under
any statute, law, ordinance, rule or regulation of any local, state or federal
authority having jurisdiction over the Premises or its use, including but not

                                       2
<PAGE>

limited to any material, substance or waste which is: (1) defined as a hazardous
substance under Section 311 of the Federal Water Pollution Control Act (33
U.S.C. Section 1317) as amended; (b) defined as a hazardous waste under Section
1004 of the Federal Resource Conservation and Recovery Act (42 U.S.C. Section
6901 et. seq.) as amended; or (c) defined as a hazardous waste substance under
Section 101 of the Comprehensive Environmental Response, Compensation and
Liability Act, (42 U.S.C. Section 9601 et. seq.) as amended.

        "Impositions" means all real estate taxes and installments of special
assessments levied against the Premises and attributable to any period of time
included within the term of this Lease.

        "Interior Modifications" means the construction work that Landlord has
agreed to do as set forth in the Construction Drawings. The Interior
Modifications include the construction of the Additional Parking Lot and the
installation of a traffic signal at the entrance to the Development. The
Interior Modifications shall not include any Computer Support Systems.

        "Landlord's Buildout Cost" means the Buildout Cost minus the Tenant's
Share.

        "Lease" means this lease agreement including all exhibits attached
hereto.

        "Lease Year" means, as to the first Lease Year, the 365 day period
beginning on the Commencement Date (366 day period if February 29 falls within
such Lease Year), provided, however, that if the Commencement Date is a day
other than the first day of a calendar month, then the first Lease Year shall
instead be measured from the first day of the calendar month immediately
following the calendar month within which the Commencement Date falls.
Thereafter, each succeeding Lease Year shall be the 365 day period (366 day
period if February 29 falls within such period) immediately following the end of
the prior Lease Year. By way of example, if the Commencement Date is October 24,
1999, then each Lease Year would run from November 1 through October 31.

        "Operating Costs" means all costs and expenses paid or incurred by
Landlord or on Landlord's behalf in connection with the ownership, management,
repair, replacement, remodeling, maintenance and operation of the Premises,
including, without limitation, all assessments due to deed restrictions and/or
owner's associations which accrue against the Premises, Impositions, the costs
of maintaining and repairing parking lots, parking structures, easements,
landscaping, property management fees, utility costs to the extent not
separately metered, insurance premiums, and depreciation of the costs of
replacement of the Premises and improvements in the Development but not
including any Structural

                                       3
<PAGE>

Repairs which are normally chargeable to capital accounts under sound accounting
principles. The term Operating Costs does not include; (i) costs of alterations
of tenants' premises; (ii) costs of curing construction defects; (iii) interest
and principal payments on mortgages, and other debt cost; (iv) real estate
brokers' leasing commissions or compensation; (v) any cost or expenditure for
which Landlord is reimbursed, whether by insurance proceeds or otherwise; (vi)
cost of legal and other professional fees incurred in preparing, negotiating and
executing leases; (vii) costs of electrical energy furnished and metered
directly to tenants of the Building; (viii) executive salaries except to the
extent reasonable and directly allocable to the operation of the Premises; (ix)
franchise or income taxes imposed upon the Landlord; (x) costs incurred by the
Landlord including legal and other professional fees, as a result of a breach
(or claim thereof) by any tenant or the Landlord of their lease obligations;
(xi) increased insurance premiums caused by acts of other tenants within the
Development; (xii) depreciation of real property and improvements (xiii) costs
of a capital nature; (xiv) costs incurred by the gross negligence or willful
acts of the Landlord. Notwithstanding anything contained herein to the contrary,
depreciation of any capital improvements which are intended to reduce Operating
Costs, or are required under any governmental laws, regulations or ordinances
which were not applicable to the Premises or the Development at the time it was
constructed, or are recommended by the N.F.P.A. Life Safety Code, shall be
included in Operating Costs. If Landlord selects the accrual method of
accounting rather than the cash accounting method for Operating Costs purposes,
Operating Costs shall be deemed to have been paid when such expenses have
accrued all in accordance with generally accepted accounting principals. Certain
of the costs of management, operation and maintenance of the Premises may be
common to all of the improvements within the Development owned by Landlord and
Tenant consents to Landlord's allocation of such common costs among the various
improvements owned by Landlord within the Development and the amount of such
common costs allocated by Landlord to the Premises shall be deemed an Operating
Cost, provided that the allocation method used by Landlord is reasonable and
provided that the determination of such costs and the allocation of all or part
thereof to Operating Costs hereunder shall be in accordance with generally
accepted accounting principles applied on a consistent basis. Landlord may, in a
reasonable manner taking into account any increased premiums, if any, due to any
special uses of other tenants in the Development, allocated insurance premiums
for so called "blanket" insurance policies which insure other properties as well
as the Premises and said allocated amount shall be deemed to be an Operating
Cost.

        "Permitted Use" means the use of the Building as an office facility and
such other purposes that are usual in connection therewith and the use of the
Additional Parking Lot for parking

                                       4
<PAGE>

purposes.

        "Phase I Portion of the Building" means the portion of the Building
comprised of approximately 105,118 s.f. situated in the most northern half of
the warehouse portion of the Building. The location of the Phase I Portion of
the Building is identified in the floor plan of the Building annexed hereto as
Exhibit C.

        "Phase II Portion of the Building" means the portion of the Building not
comprised of the Phase I Portion of the Building. The location of the Phase II
Portion of the Building is identified in the floor plan of the Building annexed
hereto as Exhibit C.

        "Phase I Target Delivery Date" means January 31, 2000 plus a number of
days thereafter equal to the sum of (i) the number of days from September 3,
1999 through the Effective Date"; and (ii) the number of Tenant Delay days.

        "Phase II Target Delivery Date" means April 1, 2000 plus a number of
days thereafter equal to the sum of (i) the number of days from September 3,
1999 through the Effective Date"; and (ii) the number of Tenant Delay days.

        "Public Accommodation Law" means any and all applicable laws,
regulations and building codes governing non-discrimination and public
accommodations and commercial facilities including, without limitation, the
requirements of the Americans with Disabilities Act, 42 USC 12-101 and all
regulations and promulgations thereunder.

        "Punch List Items" means, with respect to the Interior Modifications,
details of construction, decoration, mechanical adjustment, and landscaping,
which, in the aggregate, are minor in character and do not materially interfere
with Tenant's use or enjoyment of the Premises. Punch List Items shall be
completed within thirty (30) days after Substantial Completion.

        "Premises" means the entire Building. The Premises shall also include
the Additional Parking Lot.

        "Proportionate Share" means one hundred percent (100%).

        "Renewal Notice" means written notice that Tenant intends to exercise an
option to extend granted to Tenant under this Lease. A Renewal Notice, to be
effective, must be received by Landlord no later than 365 days prior to the
Expiration Date, time being of the essence.

        "Rent" means the sum of the monthly base rent plus the additional rent
as provided in Section 6.01 of this Lease together with all sales tax to be
collected thereon. Notwithstanding

                                       5
<PAGE>

anything in the Lease to the contrary, all amounts payable by Tenant to or on
behalf of Landlord under this Lease, whether or not expressly denominated as
Rent, shall constitute additional rent.

        "Specialty Items" means a special air conditioning system and raised
computer flooring in accordance with plans and specifications provided by
Tenant. Specialty Items also include the generator package and data and telecom
cables.

        "Structural Repairs" means repairs and replacements to the Building's
foundations, load-bearing walls, columns and joists and replacement of roofing
and roof deck.

        "Substantial Completion" will occur when (i) the Interior Modifications
have been completed except for Punch List Items; (ii) all of the Building's
sanitary, electrical, heating, ventilating, air conditioning and other systems,
to the extent they serve the Building, shall be completed and in good order and
operating condition except for Punch List Items; (iii) Landlord shall have
obtained a permanent Certificate of Occupancy for the Building, permitting legal
use of the Building for the Permitted Use; and (iv) Landlord shall have
delivered to Tenant written certification that Landlord has met its obligations
under clauses (i) through (iii) of this paragraph along with a current list of
Punch List Items, certified by the Architect; provided, however, that, if and to
the extent compliance with any of the conditions set forth in clauses (i)
through (iii) above would have occurred earlier but for a Tenant Delay, then
compliance with such condition shall be deemed to have occurred on the date it
would have occurred but for the Tenant Delay. If there is a dispute as to
whether Substantial Completion has been achieved, Landlord shall be deemed to
have substantially completed its work upon the certification of the Architect
together with the issuance of a Certificate of Occupancy.

        "Superior Mortgagee" means a bank, insurance company or other
institutional lender now or hereafter holding a mortgage or deed of trust
encumbering the Premises. The current Superior Mortgagee is The Prudential
Insurance Company of America, a New Jersey corporation whose notice address is
Two Ravinia Drive, Suite 1400, Atlanta, Georgia 30346-2110.

        "Tenant Delay" means, with respect to the construction of the Interior
Modifications, any one or more of (i) Tenant's failure to agree to plans,
specifications, and/or cost estimates within the required response date
specified in this Lease, or if none is specified, within seven business days of
Tenant's receipt of such plans, specifications and/or cost estimates, provided,
however, that if Tenant's approval is dependant upon a review by a Tenant
construction consultant based outside of Memphis, Tennessee, then ten business
days will be substituted for seven business days; (ii) Tenant's request for
materials, finishes or installations other

                                       6
<PAGE>

than in Building standard; (iii) Tenant's changes in the Construction Drawings;
or (iv) Tenant's failure to timely pay the Tenant Share.

        "Tenant Share" means the portion of the Buildout Cost, including
construction management fees, attributable to (i) the generator package; (ii)
data telecom cables; (iii) all costs associated with the traffic signal to be
installed at the main entrance to the Development including impact fees and
traffic mitigation charges; and (iv) any change orders required by Tenant and
agreed to by Landlord that increase the Buildout Cost. The Tenant Share shall be
paid by Tenant to Landlord within ten business days of the determination of the
amount, from time to time determined, provided, however, that the portion of the
Tenant Share attributable to the traffic signal at the entrance to the
Development will not be required to be paid until thirty days of the
determination of the amount.

        "Term", "term" or "rental term" means the primary term of this Lease. If
the term of this Lease has been extended pursuant to an option granted to Tenant
under this Lease to extend the term or pursuant to any amendment to this Lease
extending the term, then such extended term shall be included as part of the
term.

        "Transfer Premium" means all rent, additional rent or other
consideration payable by an assignee or subtenant (other than an Affiliate) in
excess of the Rent (including Impositions) payable by Tenant under this Lease
(on a per rentable square foot basis in the case of a subletting where the
subletting is for less than the entire Premises) after deducting the reasonable
expenses incurred by Tenant for (i) any Landlord consented to changes,
alterations and improvements to the Premises in connection with the assignment
or subletting; and (ii) any brokerage commissions in connection with the
assignment or subletting.

                                   ARTICLE II
                                  CONSTRUCTION

        2.01 Construction Drawings. As soon as is practical immediately
following the Effective Date, Landlord will instruct the Architect to prepare
the Construction Drawings in accordance with preliminary plans that were
approved by Tenant prior to the Effective Date. Upon Tenant's receipt of the
Construction Drawings, Tenant will have seven business days to review the
Construction Drawings. Unless, within such seven business day period, Tenant
provides Landlord with written notice that the Construction Drawings are not
acceptable (such written notice must specify with particularity the deficiencies
in the Construction Drawings), the Construction Drawings will be deemed accepted
by Tenant. If Landlord and Tenant have failed to reach an agreement on the
Construction Drawings within sixty (60) days of the

                                       7
<PAGE>

Effective Date, then Landlord may terminate this Lease.

        2.02 Tenant Review of Buildout Cost. Tenant, prior to the Effective
Date, has approved the General Contractor's bid which is on a cost plus basis.
Tenant shall have the right to review and approve all major subcontractor bids.
Tenant shall not unreasonably withhold or delay approval of any subcontractor
bids. Furthermore, Tenant shall have the right to audit the total Buildout Cost
during and at the completion of project construction for the purpose of
determining the actual Buildout Cost.

        2.03 Commencement of Construction. Upon Tenant's written approval or
Tenant's deemed approval of the Construction Drawings, and the selection of the
general contractor and the execution of the construction contract, whichever
occurs first, Landlord will then make application for, and pursue the issuance
of the building permit required for it to construct the Interior Modifications.
Upon the issuance of a building permit, Landlord will then promptly commence,
and shall pursue with due diligence and continuity until completion, the
construction of the Interior Modifications in accordance with the Construction
Drawings, subject, however, to the right of Landlord to make non-material
changes in design or construction which are necessary, in Landlord's reasonable
judgment, provided that such changes do not increase the Tenant Share.

        2.04 Tenant Changes to Construction Drawings. Tenant may propose changes
to the Construction Drawings provided that Landlord may refuse to make any
changes proposed by Tenant which would delay the progress of Landlord's work by
more than thirty days, in the aggregate, or which involves a material deviation
from the Construction Drawings, or in any way increases the cost to Landlord of
constructing the Interior Modifications in excess of five percent, in the
aggregate, of the initial budgeted amount. Any changes to the Construction
Drawings ("Change Orders") required by Tenant must be requested through the
Architect and approved in writing by Landlord and Tenant prior to construction.
Wherever practical, Change Orders shall specify the number of days of Tenant
Delay and/or the amount of the Tenant Share, if any.

        2.05 Inspections by Tenant. Tenant may inspect the construction of the
Interior Modifications and furnish to Landlord in writing Tenant's approval or
disapproval of the work done through the date of such inspection. Tenant's sole
basis for disapproval of any such work shall be the failure of such work to
comply with the Construction Drawings.

        2.06 Substantial Completion. Landlord will notify Tenant in writing as
soon as Landlord has Substantially Completed the Interior Modifications. If
Tenant believes that the Interior Modifications have not been Substantially
Completed, Tenant must

                                       8
<PAGE>

notify Landlord in writing of Tenant's objections. Landlord shall have a
reasonable time after delivery of such notice in which to take such corrective
action as may be necessary, and shall notify Tenant in writing as soon as
Landlord deems such corrective action has been completed so that the Interior
Modifications are Substantially Completed. The taking of possession of the
Premises by Tenant shall be deemed conclusively to establish that the Landlord
has completed all work required to be performed by Landlord to get the Premises
ready for Tenant's occupancy and that the Premises are in good and satisfactory
condition, as of when possession was so taken, Punch List Items excepted. Except
as otherwise expressly set forth in this Lease, Tenant acknowledges that no
representations as to the repair or improvement of the Premises or the
Development have been made by Landlord.

        2.07 Tenant Set Up Work. Prior to the Commencement Date and provided
that Tenant does not interfere with Landlord's construction of the Interior
Modifications, Tenant shall have the right to setup furniture, fixtures and
equipment and perform wiring and cabling. All work not within the scope of
Landlord's construction of the Interior Modifications, such as installation of
furniture, telephone equipment, and office equipment, shall be furnished and
installed by Tenant at Tenant's expense. Tenant shall conduct its work in such a
manner so as to maintain harmonious labor relations and so as not to interfere
unreasonably with or delay the work of Landlord's contractors. Tenant's
contractors, subcontractors and labor shall be reasonably approved by Landlord
and shall be subject to the administrative supervision of Landlord's
construction manager. All work performed by Tenant or at Tenant's direction
shall conform to and comply with any and all local and state building codes,
ordinances and the N.F.P.A. Life Safety Code.

        2.08 As Built Plans. On the Commencement Date or occupancy of the
Premises by Tenant, if later, Landlord shall deliver to Tenant four complete
sets of "as built" plans and specifications for the Interior Modifications,
together with a certificate of the Architect that the Interior Modifications
have been completed in accordance with the Construction Drawings. In addition,
Landlord shall make available to Tenant from time to time upon request copies of
the "as built" plans and specifications for the Building. Such plans and
specifications for the Building shall be made available at the Architect's
offices and may not be removed or copied without Landlord's consent.

        2.09 Commencement Agreement. Within thirty (30) days after Substantial
Completion, Landlord and Tenant shall execute an agreement supplementary hereto,
setting forth the Commencement Date and the Expiration Date.

        2.10 Landlord's Inability To Complete Interior Modifications

                                       9
<PAGE>

Due To Tenant Delay. If Landlord is delayed in the Substantial Completion of the
Interior Modifications as a result of a Tenant Delay, then in that event the
Commencement Date shall be accelerated by the number of days of such Tenant
Delay. In addition, if Landlord cannot Substantially Complete the Interior
Modifications as a result of a Tenant Delay, Landlord may, at its sole and
absolute discretion, complete so much of the Interior Modifications as may be
practical under the circumstances and, by written notice to Tenant, establish
the Commencement Date as the date of such partial completion, subject to any
accelerations due to any Tenant Delay, or if Tenant has not cured such Tenant
Delay within sixty days of Landlord's written notice to Tenant advising of the
Tenant Delay, then Landlord, in Landlord's sole and absolute discretion, may
elect to terminate the Lease in which case Tenant shall be liable for, as
liquidated damages, all Buildout Costs expended by Landlord through the date of
termination together with the monthly Rent and Impositions that would have been
paid for the first Lease Year.

        2.11 Completion in Phases. The Interior Modifications will be completed
in two phases. The first phase will be the completion of the Phase I Portion of
the Building and the second phase will be the completion of the Phase II Portion
of the Building. Landlord will endeavor to complete the Phase I Portion of the
Building on or before the Phase I Target Delivery Date and Landlord will
endeavor to complete the Phase II Portion of the Building on or before the Phase
II Target Delivery Date. Upon the Substantial Completion of the Phase I Portion
of the Building and provided that a partial certificate of occupancy can be
obtained enabling Tenant to do business from the Phase I Portion of the
Building, Tenant will be given occupancy of the Phase I Portion of the Building.
Within ten business days of the date that Tenant is given occupancy of the Phase
I Portion of the Building, Tenant will vacate and surrender possession to
Landlord of the approximately 17,743 s.f. of space within the Building that
Tenant is currently in occupancy of pursuant to a sublease from the existing
tenant of the Building(1) in order that Landlord can then begin and complete the
balance of the Interior Modifications. Notwithstanding the completion of the
Phase I Portion of the Building and notwithstanding any right of Tenant to
occupancy of the portion of the Building currently being sublet by Tenant, the
Commencement Date and Expiration Date shall each continue to be determined based
on the Substantial Completion of the entire Premises and shall not be based on
the Substantial Completion of the Phase I Portion of the Building. In such
event, the taking of possession of the Phase I Portion of the Building by

--------
(1) Until such time, Tenant shall be permitted to continue to occupy the
approximately 17,743 s.f. of space in the Building that Tenant is currently
subletting, it being agreed and understood that occupancy will be pursuant to
the terms of this Lease and not pursuant to any sublease agreement, such
sublease agreement to end as of the date of the termination of the lease between
Landlord and the current tenant of the Building.

                                       10
<PAGE>

Tenant shall only be deemed conclusively to establish that the Landlord has
completed all work required to be performed by Landlord to get the Phase I
Portion of the Building ready for Tenant's occupancy and that the Phase I
Portion of the Building is in good and satisfactory condition, as of when
possession was so taken, Punch List Items excepted.

        2.12 Construction Defects. After entering into occupancy of any part of
the Premises Tenant shall, within ninety (90) days, bring to Landlord's
attention any deficiencies in construction which come to Tenant's attention, and
Landlord shall promptly correct the same at Landlord's expense. Tenant
acknowledges that any Computer Support Systems for the Premises will be supplied
and installed by a vendor selected by Tenant, at Tenant's direction and expense.
Landlord shall not be responsible for the repair, maintenance or replacement of
any part of any Computer Support System. Landlord will contract for the
installation of any Specialty Items in accordance with plans and specifications
provided by Tenant if provided for in the Construction Drawings. Landlord's sole
representation and warranty with respect to any Specialty Items is that they
will be installed in accordance with Tenant's plans and specifications. Landlord
shall have no liability if it is subsequently determined that the Specialty
Items are not fit for the purpose for which they are intended by any reason
other than the failure to install in accordance with Tenant's plans and
specifications. By way of example, Landlord shall have no liability to Tenant if
it is subsequently determined that a larger air conditioning system is needed in
order to keep Tenant's computer hardware operational. Further, Tenant shall have
thirty days (the "Inspection Period") from the date of the installation of any
Specialty Items within which to advise Landlord in writing of Landlord's failure
to install the Specialty Items in accordance with Tenant's plans and
specifications, detailing with specificity any objections and required
corrections. After the Inspection Period, Landlord shall have no liability to
Tenant whatsoever with respect to the Specialty Items, except as to those items
that Tenant timely requested correction of within the Inspection Period.

                                   ARTICLE III
                                      TERM

        3.01 Primary Term. The primary term of this Lease shall be for a period
commencing on the Commencement Date and ending on the last day of the tenth
Lease Year.

        3.02 Option to Extend. Provided Tenant is not in default of the terms of
this Lease, Tenant shall have the right, at its option, to renew and extend the
term of this Lease for a renewal term of five (5) years (the "First Extended
Term"). To exercise its option to renew and extend the term of this Lease for
the First

                                       11
<PAGE>

Extended Term, Tenant must timely provide Landlord with the Renewal Notice. Upon
Landlord's timely receipt of the Renewal Notice, the term of this Lease shall be
extended to include the First Extended Term. Extension shall be upon the same
terms and conditions as the primary term, except that (i) the base rent during
the First Extended Term shall be determined according to Section 4.02, and (ii)
exercise of such option shall not be deemed to entitle Tenant to any additional
options unless Landlord and Tenant shall specifically so provide in writing, and
(iii) if Tenant does not meet any of the requirements of this Section 3.02
including the timely providing of the Renewal Notice, then this Section 3.02
will become null and void and with no avail.

                                   ARTICLE IV
                                    BASE RENT

        4.01 Base Rent During Primary Term. Tenant agrees to pay to Landlord
base rent for the Premises, without demand, deduction or set off, for the entire
primary term hereof beginning on the Commencement Date at the rate of
$157,319.32 a month ($8.67 s.f.), provided, however, that beginning on the first
day of the sixth Lease Year and continuing during the remainder of the primary
term, the monthly base rent amount shall increase to $165,484.68 a month ($9.12
s.f.). If the Commencement Date is a day other than the first day of a calendar
month, then for the initial partial month, Tenant agrees to pay a per diem base
rental of $5,243.98 a day for each day of the partial month beginning on the
Commencement Date and ending on the last day of the partial month in which the
Commencement Date falls. Tenant shall not be required to pay base rent for any
period of time beginning on the date Tenant takes occupancy of the Phase I
Portion of the Building and ending on the day immediately preceding the
Commencement Date.

        4.02 Base Rent During First Extended Term. If the term of this Lease has
been extended pursuant to Tenant's exercise of Tenant's First Extended Term
option, then the monthly base rent amount payable by Tenant during the First
Extended Term shall be $75,302.79 a month.

        4.03 Time For Payment of Rent. The first month's Rent shall be paid
simultaneously with the execution of this Lease. Thereafter, each monthly
installment of Rent shall be due and payable on or before the first day of the
calendar month for which such Rent is payable.

        4.04 Change in Base Rent Attributable to Change In Landlord's Buildout
Cost. The base rent amounts specified in Section 4.01 have been calculated based
on the sum of (i) an agreed upon warehouse space base rental rate of $3.00 s.f.
for Lease Years 1 through 5 and $3.45 s.f. for Lease Years 6 through 10; (ii) an
agreed upon rental rate for the Additional Land of $0.18 s.f. for

                                       12
<PAGE>

the entire primary term; (iii) an agreed upon $0.20 s.f. attributable to
demolition costs that might be incurred to convert the Building from office use
to warehouse and distribution use after the end of the term; and (iv) $5.29 s.f.
attributable to the cost of the Interior Modifications which was calculated
based on a projected Landlord's Buildout Cost of $7,148,871.95 which was then
reduced by a $177,430.00 tenant improvement allowance built in to the
calculation, which resulting difference was then amortized over the ten year
primary term using an eleven percent (11%) interest factor.

If Landlord's Buildout Cost is less than or greater than $7,148,871.95, then the
base rent amounts specified in Section 4.01 for the primary term shall be
increased or decreased, as the case may be, so that in lieu of the $5.29 s.f.
component of base rent attributable to the cost of the Interior Modifications,
there is instead substituted an amount equal to Landlord's Buildout Cost reduced
by $177,430.00 and amortized with an eleven percent (11%) interest factor over
the ten year primary term.

Nothing contained in this Section shall be construed to require an increase or
decrease in the base rent amount specified in Section 4.02 to be paid during the
First Extended Term.

        4.05 Rent for Space Currently Sublet. Tenant shall pay to Landlord the
sum of $155,018 as rent for the use and occupancy of the approximately 17,743
s.f. of space within the Building that Tenant is currently in occupancy of
pursuant to a sublease agreement with the existing tenant of the Building. The
foregoing rental shall be paid in two equal installments, the first installment
being due on November 1, 1999 and the second installment being due on December
1, 1999. The foregoing rent shall be for the period beginning on the date the
lease is terminated with the existing tenant of the Building (thereby
terminating the sublease) and ending on the date that Tenant is required to
vacate and surrender possession to Landlord in order that Landlord can complete
the Interior Modifications.

                                    ARTICLE V
                                      TAXES

        5.01 Franchise and Sales Taxes. Tenant shall be responsible to pay
before delinquency all franchise taxes, assessments, levies or charges measured
by or based in whole or in part upon the rents payable hereunder by Tenant and
all sales taxes and other taxes imposed upon or assessed by reason of the rents
and other charges payable hereunder.

        5.02 Impositions. Impositions will be payable as additional rent as part
of Tenant's Proportionate Share of Operating Costs.

                                       13
<PAGE>

        5.03 Tenant's Contest of Imposition. Tenant may contest in good faith
and at its expense the amount and validity of any Imposition that it is
obligated to pay as part of its Proportionate share of Operating Cost and, if
successful in that regard, Tenant shall be entitled to recover from Landlord any
refund paid to Landlord as a result of that successful contest. Landlord shall
join in any contest undertaken by Tenant in accordance with the foregoing at
Tenant's expense if the provisions of any law, rule or regulation at the time in
effect require that the proceedings be brought by or in the name of Landlord.

        5.04 P.I.L.O.T. Program. Landlord agrees to cooperate with Tenant in
enabling the Premises to qualify under the P.I.L.O.T. program including, to the
extent required in order to be eligible, conveying ownership of the Premises to
the Industrial Development Board of the City of Memphis and County of Shelby,
Tennessee, a public not for profit corporation of the State of Tennessee subject
to a lease back by Landlord. The foregoing is subject to (i) Landlord not being
required to incur any cost or expense; and (ii) the Superior Mortgagee
consenting.

                                   ARTICLE VI
                                 OPERATING COSTS

        6.01 Tenant's Proportionate Share of Operating Costs. Beginning on the
Commencement Date and continuing during the entire term(2), Tenant shall pay to
Landlord as additional rent, its Proportionate Share of Operating Costs. Any
payments with respect to any partial calendar year in which the term commences
or ends shall be prorated. Tenant agrees to initially pay $19,960.00 per month
as an escrow amount for Operating Costs. Thirty (30) days prior to the
commencement of each calendar year Landlord shall deliver to Tenant its estimate
(or revised estimate) of Tenant's Proportionate Share of Operating Costs payable
under this Section 6.01 for such calendar year. On or before the first day of
the next month and on or before the first day of each month thereafter, Tenant
shall pay to Landlord as additional rent such amount as Landlord reasonably
determines to be necessary to bring and keep Tenant current. By April 1 of the
next succeeding calendar year, Landlord shall deliver to Tenant a statement
showing the total amount payable by Tenant under this Section 6.01 for the
immediately preceding calendar year (the "Year End Statement"). Such statement
shall contain sufficient detail for Tenant to identify the specific Operating
Costs. If such statement shows an amount due from Tenant that is less than the
estimated payments previously paid by Tenant, it shall be accompanied by a
refund of

--------

(2) Tenant shall not be required to pay additional rent pursuant to this Section
attributable to any period beginning on the date Tenant has received possession
of the Phase I Portion of the Building and ending on the day immediately
preceding the Commencement Date.

                                       14
<PAGE>

the excess to Tenant or at Landlord's option the excess shall be credited
against the next monthly installment of Rent. If such statement shows an amount
due from Tenant that is more than the estimated payments paid by Tenant, Tenant
shall pay the deficiency to Landlord, as additional rent. If an amount is due
and is not paid within thirty (30) days after the date of Landlord's statement
to Tenant, Tenant shall pay a late fee of 10% of the unpaid balance.

        6.02 Audit of Operating Costs. Tenant or its representatives shall have
the right after seven (7) days prior written notice to Landlord to examine
Landlord's books and records of Operating Costs during normal business hours
within forty five (45) days following the furnishing of the Year End Statement
to Tenant. Unless Tenant takes written exception to any item within sixty (60)
days following the furnishing of the Year End Statement to Tenant (which item
shall be paid in any event), such Year End Statement shall be considered as
final and accepted by Tenant. The taking of exception of any item shall not
excuse Tenant from the obligation to make timely payment based upon the
statement as delivered by Landlord. If Tenant takes exception to any item,
Tenant must state with particularity the basis of the objection and the amount
of objection. Amounts objected to having a reasonable basis in fact and law, as
reasonably determined by Landlord, shall be paid by Tenant to the trust account
of a mutually acceptable attorney or title company to be held in escrow pending
resolution of the objection. If the matter cannot be satisfactorily resolved
within sixty days of the date of deposit into the escrow account, then Tenant
must commence an action in the appropriate court of competent jurisdiction
seeking a determination of the correct amount, the filing to be within seventy
five days of the date of deposit into the escrow account. Failure to timely do
so will entitle Landlord to have the escrowed funds distributed to Landlord.

        6.03 Allocation of Common Operating Costs. With respect to the
allocation of common operating costs among all of the improvements in the
Development owned by Landlord, an appropriate adjustment must be made in a
reasonable manner if, after taking into account all of the facts and
circumstances as to the particular common expense, it would be materially unfair
and inequitable to base the allocation solely on the basis of the respective
square footage of each improvement sharing the common expense.

                                   ARTICLE VII
                  TENANT'S USE AND MAINTENANCE OF THE PREMISES

        7.01 Purpose. Tenant agrees it shall not use or suffer the Premises to
be used for any disorderly or unlawful purpose. The Premises is to be used by
Tenant solely for the Permitted Use.

                                       15
<PAGE>

        7.02 Repairs and Maintenance. Tenant shall at its own cost and expense
keep and maintain all parts of the Premises and such portion of the Development
within the exclusive control of Tenant in good condition, promptly making all
necessary repairs and replacements, whether ordinary or extraordinary, with
materials and workmanship of the same character, kind and quality as the
original, including but not limited to, windows, glass and plate glass, doors,
any special office entries, interior walls and finish work, floors and floor
coverings, heating and air conditioning systems, electrical systems and
fixtures, sprinkler systems, water heaters, dock boards, truck doors, dock
bumpers, and plumbing work and fixtures. Tenant as part of its obligation
hereunder shall keep the whole of the Premises in a clean and sanitary
condition. Tenant will as far as possible keep all such parts of the Premises
from deteriorating, ordinary wear and tear excepted, and from falling
temporarily out of repair, and upon termination of this Lease in any way, Tenant
will yield up the Premises to Landlord in good condition and repair, loss by
fire or other casualty covered by insurance to be secured pursuant to Section
13.01 excepted. Tenant shall, at its own cost and expense, as additional rent,
pay for the repair of any damage to the Premises, the Building or the
Development resulting from and/or caused in whole or in part by the negligence
or misconduct of Tenant, its agents, servants, employees, patrons, customers, or
any other person entering upon the Development as a result of Tenant's business
activities or caused by Tenant's default hereunder. Landlord agrees to use its
best efforts to have all system warranties received from the general contractor
of subcontractors issued in the name of Landlord and Tenant, provided, however,
that Tenant shall only have rights under the system warranties during the rental
term including any extended term. If a system warranty cannot be issued in the
joint name of Landlord and Tenant, then Tenant's obligation to replace a system
shall be limited to the extent not covered under the system warranty.

        7.03 HVAC Maintenance. Tenant at its own cost and expense shall enter
into a regularly scheduled preventative maintenance/service contract with a
maintenance contractor approved by Landlord, for servicing all heating and air
conditioning systems and equipment servicing the Premises and an executed copy
of such contract shall be delivered to Landlord. This service contract must
include all services suggested by the equipment manufacturer within the
operations/maintenance manual and must become effective within thirty (30) days
of the date Tenant takes possession of the Premises. Landlord may (but shall not
be required to), upon notice to Tenant, elect to enter into such a maintenance
service contract on behalf of Tenant or perform the work itself and, in either
case, charge Tenant therefore, together with a reasonable charge for overhead.

                                       16
<PAGE>

        7.04 Compliance with Laws. Tenant covenants to comply with any and all
laws, statutes, ordinances and regulations, federal, state, county or municipal,
now or hereinafter in force applicable to the Premises relating to the use or
occupancy thereof or to the making of repairs thereto, or of changes,
alterations or improvements therein, ordinary or extraordinary, structural or
otherwise, seen or unforeseen, including but not limited to the performance of
any duty imposed upon the Landlord or Tenant by such laws, statutes, ordinances
or regulations in respect to the sidewalks, curbs, streets or vaults adjacent to
the Premises. The Tenant also covenants to comply with any and all regulations
and rules applicable to the Premises issued by the Board of Fire Underwriters,
or by any other body exercising similar functions, and insurance companies
writing policies covering the Premises which now or hereafter may become
applicable to the Premises. Tenant shall pay all costs, expenses, claims, fines,
penalties and damages that may in any manner arise out of or be imposed because
of the failure of Tenant to comply with this section, and in any event agrees to
indemnify the Landlord from all liability with reference to the same. The
Landlord and Tenant shall each promptly give notice to the other in writing at
the address listed in the Lease of any notice of violation received by the
Tenant or Landlord, respectively. Without diminishing the obligation of the
Tenant, if the Tenant shall at any time fail or neglect to comply, to the extent
reasonably appropriate and as expeditiously as reasonably feasible, with any of
said laws, rules, requirements, orders, directions, ordinances or regulations
concerning or affecting the Premises or the use and occupation thereof, or of
any building thereof, as hereinbefore provided, and, if a stay is necessary,
shall have failed to obtain the stay or continuance thereof, the Landlord in
addition to the other remedies shall be at liberty, after fifteen (15) days
prior written notice to Tenant, to comply therewith, and reasonable expenses
consequent thereon shall be borne and paid by the Tenant; upon Tenant's failure
so to pay, Landlord may pay the same and any payments so made by the Landlord,
together with interest thereon to be computed at the rate of fifteen percent
(15%) per annum from date of payment shall be considered as additional rent to
be added to the installment of Rent next accruing, and shall entitle Landlord to
enforce any of the terms, provisions, conditions and covenants herein contained
that may be applicable to such rent. Notwithstanding, Tenant shall not be
required to make any structural repairs or alterations to the Building arising
from any changes in the law unless resulting from Tenant's special use of the
Building.

        7.05 End of the Term. Tenant covenants that on the last day of the term,
it will peaceably and quietly leave and surrender the Premises in as good
condition as they were at the commencement of the Lease term, ordinary wear and
tear, repairs and replacements required herein to be made by Landlord,
destruction or damage by fire, excepted.

                                       17
<PAGE>

                                  ARTICLE VIII
                             LANDLORD'S OBLIGATIONS

        8.01 Landlord's Repair Obligation. Landlord shall maintain in good
repair, reasonable wear and tear and any casualty covered by the provisions of
Article XII excepted, all parts of the Development, other than Tenant's Premises
or portions of the Development within the exclusive control of tenants of the
Development, making all necessary repairs and replacements whether ordinary or
extraordinary structural or nonstructural, including roof, foundation,
structural floors (other than the raised computer flooring), walls, downspouts,
gutters, regular mowing of any grass, trimming, weed removal and general
landscape maintenance, including any rail spur areas, exterior painting,
exterior lighting, exterior signs and common sewage plumbing and maintenance of
all paved areas including driveways and alleys, including, but not limited to,
cleaning, repaving, restripping and resealing. Tenant shall immediately give
Landlord written notice of any defect or need for repairs, after which Landlord
shall have a reasonable opportunity to repair the same or cure such defect.
Landlord's liability with respect to any defects, repairs, or maintenance or the
curing of such defect for which Landlord is responsible under the provisions of
this Lease shall be limited to the cost of such repairs or maintenance or the
curing of such defect. The term "walls" as used herein shall not include
windows, glass or plate glass, doors, special store front or office entry. If
Landlord fails to perform maintenance or make repairs as required by the terms
of this Lease within a reasonable time after written notice from Tenant to
Landlord, then, upon prior written notice from Tenant to Landlord, Tenant may
perform Landlord's maintenance or repairs and invoice Landlord for payment of
said work.

        8.02 Covenant of Quiet Enjoyment. Landlord covenants that it now has or
will acquire before Tenant takes possession of the Premises, good title to the
Premises, free and clear of all liens and encumbrances, excepting only the lien
for current taxes not yet due, such mortgage or mortgages as are permitted by
the terms of this Lease, zoning ordinances and other building and fire
ordinances and governmental regulations relating to the use of such property,
and easements, restrictions other conditions of record. Landlord represents and
warrants that it has full authority and right to enter into this Lease and that
Tenant, upon paying the Rent and other charges herein set forth and performing
its other covenants and agreements herein set forth, shall peaceably and quietly
have, hold and enjoy the Premises for the term hereof without hindrance or
molestation from Landlord, subject to the terms and provisions of this Lease.

                                   ARTICLE IX
                             ALTERATIONS AND SIGNAGE

                                       18
<PAGE>

        9.01 Alterations. Tenant shall not make any alterations, additions or
improvements to the Premises (including, without limitation, the roof and wall
penetrations) without the prior written consent of Landlord which consent shall
not be unreasonably withheld. If Landlord shall consent to any alterations,
additions or improvements proposed by Tenant, Tenant shall construct the same in
accordance with all governmental laws, ordinances, rules and regulations and all
requirements of Landlord's and Tenant's insurance policies and only in
accordance with plans and specifications approved by Landlord. At the time
Landlord consents to any such alterations, additions or improvements Landlord
shall advise Tenant whether Tenant is required to remove such alterations,
additions or improvements prior to the termination of the Lease. If Landlord
does not so advise Tenant, then Tenant shall not be required to remove such
items. Tenant may, without the consent of Landlord, but at its own cost and
expense and in good workmanlike manner erect such shelves, bins, machinery and
other trade fixtures as it may deem advisable, without altering the basic
character of the Building or Development and without overloading the floor or
damaging such Building or Development, and in such case after complying with all
applicable governmental laws, ordinances, regulations and other requirements.
All shelves, bins, machinery and trade fixtures installed by Tenant may be
removed by Tenant prior to the termination of this Lease if Tenant so elects,
and shall be removed by the date of termination of this Lease or upon earlier
vacating of the Premises if required by Landlord; upon any such removal Tenant
shall restore the Premises to their original primary structure or structural
quality of the Building.

Tenant may, at its own cost and expense, without Landlord's consent, install,
replace or remove any of Tenant's trade fixtures, furniture, demountable
partitions and equipment (all hereinafter referred to as "Trade Fixtures"). Any
or all such Trade Fixtures shall be and remain the property of Tenant, and may,
at Tenant's option and expense, be removed by the Tenant at any time during the
term of the Lease or at the lease expiration date. Tenant shall be liable for
damages to the Premises caused by Tenant's removal of its Trade Fixtures.

        9.02 Signage. Tenant shall have the right, subject to Landlord's
approval which approval shall not be unreasonably withheld, to place on or in
the Building such signs conforming to all laws and municipal regulations as it
deems necessary and proper in the conduct of its business.

                                    ARTICLE X
                                   INSPECTION

        Landlord and the Landlord's agents and representatives shall have the
right to enter into or upon the Premises, or any part

                                       19
<PAGE>

thereof, after reasonable notice to Tenant for the purpose of examining the
same. Upon reasonable notice to Tenant, Landlord or Landlord's agents shall have
the right to show the Premises to persons wishing to purchase or lease the same.
During the three hundred and sixty five (365) day period prior to the expiration
of the then existing term of the Lease or renewal thereof, the Landlord or
Landlord's agent shall have the right to place the usual "for lease" or "for
sale" notices on the Premises, and Tenant agrees to permit the same to remain
thereon without hindrance or molestation.

                                   ARTICLE XI
                                    UTILITIES

        Tenant shall pay directly to the agencies and utilities providing such
service for waste collection, water, sewer, electricity, gas or any other
utility, all charges or rentals as may, during the term of this Lease, be
assessed or imposed for the utilities supplied in or on the Premises, whether
determined by meter or otherwise, as soon as the same may be payable. If such
charges or rentals are not so paid within thirty (30) days after written notice
from Landlord to Tenant, Landlord shall have the option of paying the amount due
and if such option be exercised by Landlord, such amounts paid on behalf of
Tenant shall be added to the base rental during the month next accruing. Tenant
shall pay for all gas and electricity used in the Premises during the term of
this Lease for whatever purposes. Landlord, however, agrees to provide at its
cost, water and electricity gas and sewer connections to the Premises in
accordance with the Construction Drawings. Landlord shall in no event be liable
for any interruption or failure of utility services on or to the Premises.

Notwithstanding the preceding, and solely with respect to the period of time
beginning on the Effective Date and ending on the day immediately preceding the
Commencement Date, Tenant will pay the following utility costs: (i) utility
costs attributable to the 17,743 s.f. of space currently occupied by Tenant
within the Building until the date that Tenant is given occupancy of the Phase I
Portion of the Building ; and thereafter and until the day immediately preceding
the Commencement Date (ii) two-thirds of the Building's utility costs.

                                   ARTICLE XII
                            ASSIGNMENT OR SUBLETTING

        12.01 Requirement of Landlord Consent. Tenant shall not assign or sublet
its interests, or any portion thereof, under this Lease without first obtaining
Landlord's consent in writing. Such consent shall not be unreasonably withheld.
No consent in one instance shall prevent this provision from applying in each
subsequent instance. This provision shall apply to all transfers

                                       20
<PAGE>

by operation of law, including but not limited to mergers or any change of
ownership of thirty percent (30%) or more of the stock of Tenant.

        12.02 Transfers to Affiliates. Tenant shall have the right to assign or
sublet the Premises to any of its Affiliates upon five (5) days advance written
notice to Landlord. No assignment or subletting shall relieve Tenant of
continuing direct and primary liability under this Lease without written consent
of Landlord. Such consent shall not be unreasonably withheld.

        12.03 Notice of Proposed Assignment. If Tenant desires to assign this
Lease or sublet the Premises or any part thereof to other than an Affiliate,
Tenant shall give Landlord written notice of such desire (and the name of the
proposed assignee or sublessee) at least ten (10) business days in advance of
the date Tenant proposes to make such assignment or subletting. The proposed
subletting or assignment shall be subject to Landlord's approval, which will not
be unreasonably withheld, and such approval shall be deemed given unless Tenant
receives notice in writing of Landlord's disapproval within the ten (10)
business days period. It is agreed that said assignment or sublet of Lease shall
not relieve Tenant of its liabilities under the terms of the Lease.

        12.04 Transfer Premium. If Landlord consents to a proposed assignment or
subletting and such is actually made, Tenant agrees to pay to Landlord fifty
percent (50%) of any Transfer Premium other than any Transfer Premium payable by
an Affiliate.

                                  ARTICLE XIII
                                    INSURANCE

        During the term of this Lease, the parties shall carry and maintain the
following types of insurance and in the amounts specified in this Article, all
as follows:

        13.01 Casualty Insurance. Landlord shall procure and maintain, and the
cost thereof shall be included in Operating Costs, fire and extended coverage
insurance covering the Premises against loss or damage by fire and coverages
provided in a typical all-risk insurance form under a blanket policy. Such
coverages shall include flood with a limitation of $100,000,000 on an annual
aggregate basis and earthquake with a limitation of $100,000,000 on an annual
aggregate basis. The Premises, including the Interior Modifications, shall be
insured on a full replacement cost basis. Landlord shall be responsible for any
and all deductible amounts under such policies exceeding $25,000 or for any loss
or damage caused by perils not covered by the insurance purchased.

        13.02 Loss of Rent Insurance. Landlord shall procure and maintain, and
the cost thereof shall be included in Operating

                                       21
<PAGE>

Costs, business interruption coverage insuring the loss of Rent (including
Impositions) to Landlord.

        13.03 Landlord's Liability Insurance. Landlord shall procure and
maintain, and the cost thereof shall be included in Operating Costs,
comprehensive public liability insurance including property damage, insuring the
Landlord against liability for injury to persons or property of others occurring
in or about the common areas of the Premises.

        13.04 Tenant's Liability Insurance. Tenant shall procure and maintain,
at its sole cost and expense, comprehensive public liability insurance including
property damage, insuring Tenant against liability for injury to persons or
property of others occurring in or about the Premises or arising out of the
ownership, maintenance or use or occupancy thereof. Tenant shall have their
policy or policies endorsed to name Landlord as an additional insured, but only
with respect to occurrences arising out of Tenant's operations in or about the
Premises. The liability under such insurance shall be One Million Dollars
($1,000,000.00) for any person injured or killed; Three Million Dollars
($3,000,000.00) for any one accident and One Million Dollars ($1,000,000.00) for
personal property damage per accident. Additionally, this coverage shall be
primary coverage to Landlord and Landlord's policy shall be excess over Tenant's
policies. All policies required to be covered by Tenant hereunder shall provide
for standard thirty (30) days written notice of cancellation or material change
to be given to Landlord. If Tenant fails to provide or to keep in force the
insurance required by this Section 13.04, Landlord may, at its option, procure
such insurance and all premiums advanced by Tenant on demand, together with
interest at the rate of 15% per annum from date of advance until paid. Landlord
shall give Tenant ten (10) days' written notice prior to obtaining any such
insurance unless the existing policy providing such insurance has lapsed or
would lapse within such 10-day period.

        13.05 Evidence of Insurance. Landlord and Tenant shall from time to time
provide each other with certificates issued by the other's insurance company or
companies showing the insurance required to be carried under this Article XIII
to be in effect. Upon request of any mortgagee of Landlord, Tenant shall also
furnish to landlord's mortgagee a certificate of insurance.

        13.06 Waiver of Subrogation. Each of Landlord and Tenant hereby releases
the other from any and all liability or responsibility to the other or any
person or entity claiming through or under them by way of subrogation or
otherwise for any loss or damage to property caused by fire or any other perils
causing damage to either party's property. Landlord covenants that its insurance
policies will allow an unconditional waiver of subrogation.

                                       22
<PAGE>

                                   ARTICLE XIV
                              DAMAGE OR DESTRUCTION

        If the Building should be damaged by fire, tornado or other casualty,
Tenant shall give immediate written notice thereof to Landlord. Landlord shall
proceed with reasonable diligence to rebuild and repair the Building to
substantially the condition in which it existed prior to such damage; except
that Landlord shall not be required to rebuild, repair or replace any part of
the subsequent additions, fixtures or other improvements which may have been
made on or to the Premises by Tenant including without limitation, any computer
support system. Rent (including Impositions) shall be abated during any period
of repair or reconstruction of the Premises and Landlord shall obtain
reimbursement from the business interruption insurance required to be procured
by Landlord under Section 13.02. If Landlord should fail to complete such
repairs and rebuilding within 365 days from the date upon which Landlord was
notified by Tenant of such damage, Tenant may, at its option, terminate this
Lease by delivering written notice of termination to Landlord as Tenant's
exclusive remedy for Landlord's inability to timely repair or rebuild, whereupon
all rights and or obligations hereunder shall cease and terminate. Should
construction be delayed because of changes, deletions or additions in
construction requested by Tenant, strikes, lockouts, casualties, acts of God,
war, material or labor shortages, governmental regulations or control, or causes
beyond the reasonable control of Landlord, the period of restoration, repair or
rebuilding shall be extended for the period of time which Landlord is so
delayed.

                                   ARTICLE XV
                                  CONDEMNATION

        If an authority, pursuant to its power of eminent domain, takes the
entire Premises or a substantial portion sufficient to render the remainder
unsuitable for Tenant's use, then Tenant may elect to terminate this Lease
effective on the date possession is taken by the condemning authority.
Otherwise, Landlord shall, following receipt of the proceeds of the condemnation
awards, proceed as soon as practical to restore the remaining Premises to a
condition comparable to that existing at the time of the taking. Base rent shall
be reduced for the remainder of the term in an amount equal to the reduction in
rental value of the Premises caused by the taking. Such reduction shall be
computed by determining the square footage of the Building situated on the
Premises which shall no longer be usable by the Tenant due to the taking by the
condemning authority and reducing the rental by that number times the square
foot rental amount stated in Article IV. Any and all condemnation proceeds shall
be paid to and shall belong to Landlord. Notwithstanding the foregoing, Tenant
shall have the

                                       23
<PAGE>

right to make a separate claim for leasehold improvements that were paid for by
Tenant and moving expenses.

                                   ARTICLE XVI
                                 INDEMNIFICATION

        16.01 Liability. Tenant agrees to exonerate, save harmless, protect and
indemnify the Landlord, its agents, partners, officers, directors and any
affiliates from and against any and all losses, damages, claims, suits or
actions including reasonable attorney's fees, judgments and costs which may
arise or proceed from any injury to or death of persons or damage to property,
if such incident arises out of and are attributable to the Premises or to the
use by Tenant, its agents, servants, employees, guests or customers of the
Premises. This provision shall not apply to any injuries or damages resulting
from the gross negligence of the Landlord its employees, agents or contractors
or the failure of the Landlord its employees, agents or contractors to construct
the Premises in accordance with the Construction Drawings.

        16.02 Hazardous Materials. Tenant warrants and represents to Landlord
and any mortgagee of Landlord that Tenant shall (i) not cause or permit any
Hazardous Material to exist on or be discharged from the Premises by Tenant, its
agents or employees except as for any Hazardous Material used in the ordinary
course of Tenant's business; (ii) promptly pay any claim against Landlord or the
Premises arising out of any such Hazardous Material existing on or discharged
from the Premises which would result in a charge or lien upon the Premises;
(iii) remove any such charge or lien upon the Premises; and (iv) indemnify and
hold harmless the Landlord and any mortgagee of Landlord's interest in the
Premises (collectively called the "Indemnities") from and against any and all
losses, liability, suits, obligations, fines, damages, judgments, penalties,
claims, charges, costs and expenses (including without limitation all reasonable
fees and disbursements of counsel and consultants) which may be suffered or
incurred by or asserted against, an Indemnitee and which arises directly or
indirectly out of or in connection with a violation of this Section. Tenant's
obligation pursuant to (i), (ii), (iii) and (iv) above shall survive the
Expiration Date for a period of one (1) year. Tenant shall notify Landlord of
any Hazardous Material except for those used in the ordinary course of Tenant's
business that exists on or is discharged from the Premises within ten (10) days
after Tenant first has knowledge of such existence or discharge. Reference to
Hazardous Materials used in the ordinary course of Tenant's business means
Tenant's use of the Premises for general office use and for no other purpose.

Nothing herein is intended nor shall it be construed as imposing any
environmental liability upon Tenant for any Hazardous Material existing on or
discharged from the Premises not caused by Tenant,

                                       24
<PAGE>

its agents, employees, licensees, guests, invitees, sublessees, or assigns, and
Landlord shall indemnify, defend and save harmless Tenant from and against any
and all losses, liability, suits, obligations, fines, damages, judgments,
penalties, claims, charges, costs and expenses (including without limitation all
reasonable fees and disbursements of counsel and consultants) which may be
suffered or incurred by or asserted against Tenant and which arise directly or
indirectly out of or in connection with any Hazardous Material existing on or
discharged from the Premises which occurs prior to, during or after the term of
this Lease and which is not caused by Tenant, its agents, employees, licensees,
guests, invitees, sublessees, or assigns.

        16.03 Environmental Report at Lease Expiration. At the expiration of the
term, and if but only if the occupant of the Premises is a subtenant or assignee
of Tenant, or if, but only if, Landlord has a reasonable basis to believe that
Tenant has breached the environmental covenants contained in this Lease, then in
such event and at the written request of Landlord, Tenant, at Tenant's sole cost
and expense, shall prepare and deliver to Landlord a Phase I environmental
report, the purpose being to determine if there are any environmental
deficiencies existing at the time of the expiration of the term.

                                  ARTICLE XVII
                                  HOLDING OVER

        Tenant will, at the termination of this Lease by lapse of time or
otherwise, yield up immediate possession to Landlord. In the event of any
holding over by Tenant or any of its successors in interest after the expiration
or termination of this Lease, unless the parties hereto otherwise agree in
writing, the hold over tenancy shall be subject to termination by Landlord at
any time upon not less than thirty (30) days advance written notice, or by
Tenant at any time upon not less than thirty (30) days advance written notice,
and all of the other terms and provisions of this Lease shall be applicable
during that period, except that Tenant shall pay Landlord from time to time upon
demand, as rental for the period of any holdover, an amount equal to one and
one-half (1-1/2) the Rent in effect on the termination date, computed on a daily
basis for each day of the holdover period. No holding over by Tenant, whether
with or without the consent of Landlord, shall operate to extend this Lease
except as otherwise expressly provided.

                                  ARTICLE XVIII
                                TENANT'S DEFAULT

        18.01 Events of Default. In addition to any other Event of Default
specified in this Lease, any of the following shall constitute an Event of
Default by Tenant under this Lease:

                                       25
<PAGE>

                a. Tenant's failure to pay Rent or any other charge under this
Lease on the date when due within five (5) days following written notice from
Landlord that a payment due has not been made or Tenant's failure to comply with
any other term or condition within thirty (30) days following written notice
from Landlord specifying the non-compliance. If such non-compliance cannot be
cured within the thirty (30) day period, this provision shall be satisfied if
Tenant commences correction within a reasonable time not to exceed thirty (30)
days, after receipt of such notice and in any event within such period and
thereafter proceeds in good faith and with reasonable diligence to effect
compliance as soon as possible.

                b. If this Lease devolves upon any person or entity other than
Tenant by operation of law.

                c. Tenant shall become insolvent, or shall make a transfer in
fraud of creditors, or shall make an assignment for the benefit of creditors.

                d. Tenant shall file a petition under any section or chapter of
the Bankruptcy Code, as amended, or under any similar law or statute of the
United States or any state thereof; or Tenant shall be adjudged bankrupt or
insolvent in proceedings filed against Tenant thereunder.

                e. A receiver or trustee shall be appointed for all or
substantially all of the assets of Tenant.

                f. Tenant shall assign any part of this Lease without the prior
written consent of Landlord.

        18.02 Landlord's Remedies Upon an Event of Default. In case of an Event
of Default, Landlord shall have the right to the following remedies which are
intended to be cumulative and in addition to any other remedies provided under
applicable law:

                a. Terminate this Lease, in which event Tenant shall immediately
surrender the Premises to Landlord; and Tenant agrees to pay to Landlord on
demand all costs incurred in connection with such termination and retaking of
possession, including, without limitation court costs and reasonable attorney
fees.

                b. Retake possession of the Premises by summary proceedings and
relet the Premises upon any reasonable terms. Reletting shall not be construed
as an acceptance of a surrender of Tenant's leasehold interest.

                c. Recover all damages of every nature and kind caused by
Tenant's default which shall include, without limitation, all

                                       26
<PAGE>

reasonable costs associated with reletting the Premises and reasonable
attorneys' fees relating to Tenant's default. Further, Tenant shall indemnify
and hold harmless the Landlord from any actual loss of Rent by Landlord during
the balance of the original term of the Lease or current option period,
whichever may be in force as long as Landlord is using reasonable efforts to
relet the Premises. Landlord may sue periodically to recover damages as they
occur throughout the term, and no action for accrued damages shall bar a later
action for damages subsequently accrued. Landlord may elect in any one action,
even after having instituted prior action for accrued damages, to recover
accrued damages plus damages attributable to the remaining term of the Lease
equal to the difference between the Rent under the Lease and the reasonable
rental value of the Premises for the remainder of the term, discounted to the
time of judgment at the rate of nine percent (9%) per annum, plus interest on
each rental payment past due and on such judgment from the date due to the date
of actual payment at the rate of fifteen percent (15%) per annum.

                d. Make any payment or perform any obligation required of Tenant
so as to cure Tenant's default, in which case Landlord shall be entitled to
recover all amounts so expended from Tenant, plus interest from the date of
expenditure at the rate of fifteen percent (15%) per annum from the date of
expenditure.

                e. Pursuit of any of the foregoing remedies shall not preclude
pursuit of any of the other remedies herein provided or any other remedies
provided by law, nor shall pursuit of any remedy herein provided constitute a
forfeiture or waiver of any rent due to Landlord hereunder or of any damages
accruing to Landlord by reason of the violation of any of the terms, provisions
and covenants herein contained. No act or thing done by the Landlord or its
agents during the term hereby granted shall be deemed a termination of this
Lease or an acceptance of the surrender of the Premises, and no agreement to
terminate this Lease or to accept a surrender of said Premises shall be valid
unless in writing signed by Landlord.

                f. No waiver by Landlord of any violation or breach of any of
the terms, provisions and covenants herein contained shall be deemed or
construed to constitute a waiver of any other violation or breach of any of the
terms, provisions and covenants herein contained. Landlord's acceptance of the
payment of Rent or other payments hereunder after the occurrence of an Event of
Default shall not be construed as a waiver of such default, unless Landlord so
notifies Tenant in writing. Forbearance by Landlord to enforce one or more of
the remedies herein provided upon an Event of Default shall not be deemed or
construed to constitute a waiver of such default or of Landlord's right to
enforce any such remedies with respect to such default or any subsequent
default.

                                       27
<PAGE>

                                   ARTICLE XIX
                               LANDLORD'S DEFAULT

        14.01 Tenant's Remedies. In the event of any default by Landlord,
Tenant's exclusive remedy shall be an action for damages or for specific
performance, but prior to any such action Tenant must give Landlord written
notice specifying such default with particularity, and Landlord shall thereupon
have thirty days in which to commence to cure such default and proceed
diligently thereafter to cure such default. Unless and until Landlord fails to
commence to cure such default with such thirty day period and to proceed
diligently thereafter to cure such default, Tenant shall not have any remedy or
cause of action by reason thereof.

        14.02 Landlord's Failure to Pay Mortgage Debt. If Landlord should become
in default in any payments due on any mortgage encumbering the Premises, Tenant
is authorized and empowered, after giving Landlord five (5) days prior written
notice of such default and Landlord's failure to cure such default, to pay such
items for and on behalf of Landlord, and the amount of any items so paid by
Tenant for or on behalf of Landlord, together with interest or penalty required
to be paid in connection therewith, shall be payable on demand by Landlord to
Tenant; provided, however, Tenant shall not be authorized and empowered to make
any payments under the terms of this Paragraph unless the item paid shall be
superior to Tenant's interest hereunder. If Tenant pays any mortgage debt in
full, in accordance with this Section, it shall, at its election, be entitled to
the mortgage security by assignment and subrogation.

                                   ARTICLE XX
                                  ATTORNEY FEES

        In case suit or action is instituted in connection with any of the
terms, covenants or conditions of this Lease, the prevailing party in such
litigation shall be fully reimbursed by the losing party for all costs,
disbursements and attorneys fees as incurred by the prevailing party in
pretrial, trial and appellate courts. If a party prevails only in part, such
costs, disbursements and fees will be accordingly apportioned between the
parties as determined by the court. If the matter shall be settled before
litigation is instituted, each party shall bear its own costs.

                                   ARTICLE XXI
                                  SUBORDINATION

        This Lease and all the rights of Tenant hereunder are and shall be
subject and subordinate to the lien of any mortgage or mortgages hereinafter
placed on the Premises or any part thereof, except the Tenant's property or
trade fixtures, and to any and all renewals, modifications, consolidations,
replacements, extensions

                                       28
<PAGE>

or substitutions of any such mortgage or mortgages (all of which hereinafter are
termed the mortgage or mortgages) provided, nevertheless, each of such mortgages
shall contain a provision to the effect that so long as the Tenant is not in
default under this Lease, or any renewal period thereof, no foreclosure of the
lien of said mortgage or any other proceeding in respect thereof shall divest,
impair, modify, abrogate or otherwise adversely affect any interests or rights
whatsoever of the Tenant under this Lease. Further, Tenant shall attorn to the
holder(s) of any such mortgages upon any such mortgagee's foreclosing on the
Premises or otherwise taking title and/or possession of the Premises.

Such subordination shall be automatic, without the execution of any further
subordination agreement by Tenant. If, however, a written subordination
agreement, consistent with this provision, is required by a mortgagee, Tenant
agrees to execute, acknowledge and deliver the same.

As used herein, the term "mortgage" shall be understood to include a deed of
trust and the term "mortgagee" shall include the beneficiary of any deed of
trust on the Premises.

No act or failure to act on the part of Landlord which would entitle Tenant,
under the express terms of this Lease or by law, to be relieved of Tenant's
obligations under this Lease or to terminate this Lease, shall result in a
release of such obligations or a termination of this Lease unless: (i) Tenant
has given notice by certified mail, return receipt requested, to the Superior
Mortgagee; and (ii) Tenant offers the Superior Mortgagee an opportunity to cure
such default within thirty (30) days next following receipt of such notice, or
if such default cannot be cured within thirty days, to commence to cure the
default within the thirty day period and to proceed diligently thereafter to
cure the default.

                                  ARTICLE XXII
                                MECHANIC'S LIENS

        Tenant shall have no authority, express or implied, to create or place
any lien or encumbrance, of any kind or nature whatsoever upon, or in any manner
or bind the interest of Landlord in the Premises or to charge the rental payable
hereunder for any claim in favor of any person dealing with Tenant, including
those who may furnish materials or perform labor for any construction or
repairs, and each such claim shall affect and each such lien shall attach to, if
at all, only the leasehold interest granted to Tenant by this instrument. Tenant
covenants and agrees that it will pay or cause to be paid all sums legally due
and payable by it on account of any labor performed or materials furnished in
connection with any work performed on the Premises on which any lien is or can
be validly and legally asserted against its leasehold interest in the

                                       29
<PAGE>

Premises or the improvements thereon and that it will save and hold Landlord
harmless from any and all loss, cost or expense based on or arising out of
asserted claims or liens against the leasehold estate or against the right,
title and interest of the Landlord in the Premises or under the terms of this
Lease.

                                  ARTICLE XXIII
                                     NOTICES

        Each provision of this Lease or of any applicable governmental laws,
ordinances, regulations and other requirements with reference to the sending,
mailing or delivery of any notice or the making of any payment by Landlord to
Tenant or with reference to the sending, mailing or delivery of any notice or
the making of any payment by Tenant to Landlord shall be deemed to be complied
with when and if the following steps are taken:

                a. All Rent and other payments required to be made by Tenant to
Landlord hereunder shall be payable to Landlord at the address hereinbelow set
forth or at such other address as Landlord may specify from time to time by
written notice delivered in accordance herewith. Tenant's obligation to pay rent
and any other amounts to Landlord under the terms of this Lease shall not be
deemed satisfied until such rent and other amounts have been actually received
by Landlord.

                b. All payments required to be made by Landlord to Tenant
hereunder shall be payable to Tenant at the address hereinbelow set forth, or at
such other address within the continental United States as Tenant may specify
from time to time by written notice delivered in accordance herewith.

                c. Notices required or permitted hereunder shall be delivered to
the parties by actual delivery, U.S. Mail, or by recognized overnight courier
service such as Federal Express Corporation or United Parcel Service at the
respective addresses below, or such other address as a party may designate by
written notice delivered in accordance herewith.

               LANDLORD
               AMB Property II, L.P.
               c/o Trammell Crow Company
               6000 Poplar Avenue
               Suite 400
               Memphis, Tennessee 38119

               TENANT:

               International Paper Company
               3 Paragon Drive

                                       30
<PAGE>

               Park Ridge, New Jersey  07656
               Attention:  Counsel
               Copy to:  the Premises after the Commencement Date

               Prior to the Commencement Date to:
                      Ralph Nebelung
                      International Paper Company
                      3 Paragon Drive
                      Montvale, NJ 07645

Any such notice shall be deemed effective : (1) if given by hand delivery, upon
delivery; (2) if given by mail, three (3) days after deposit in the U.S. Mail
properly addressed to the party to receive same, postage prepaid, and sent
registered or certified mail, return receipt requested; (3) if given by
overnight courier, one (1) day after delivery to such courier, properly
addressed, delivery fee prepaid and overnight specified.

                d. Any notice or document required or permitted to be delivered
hereunder shall be deemed to be delivered whether actually received or not when
actually sent in accordance with the requirements of subparagraph c. above.

If and when included within the term "Landlord", as used in this instrument,
there are more than one person, firm or corporation, all shall jointly arrange
among themselves for their joint execution of such a notice specifying some
individual at some specific address for the receipt of notices and payments to
Landlord; if and when included within the term "Tenant", as used in this
instrument, there are more than one person, firm or corporation, all shall
jointly arrange among themselves for their joint execution of such a notice
specifying some individual at some specific address within the continental
United States for the receipt of notices and payments to Tenant. All parties
included with the terms "Landlord" and "Tenant", respectively, shall be bound by
notices given in accordance with the provisions of this paragraph to the same
effect as if each had received such notice.

                                  ARTICLE XXIV
                                  MISCELLANEOUS

        24.01 Gender. Words of any gender used in this Lease shall be held and
construed to include any other gender, and words in the singular number shall be
held to include the plural, unless the context otherwise requires.

        24.02 Binding Effect. The terms, provisions, covenants and conditions
contained in this Lease shall apply to, inure to the benefit of, and be binding
upon, the parties hereto and upon their respective heirs, legal representatives,
successors and permitted assigns except as otherwise herein expressly provided.
Each party

                                       31
<PAGE>

agrees to furnish the other, promptly upon demand, a corporation resolution,
proof of due authorization by partners, or other appropriate documentation
evidencing the due authorization of such party to enter into this Lease.

        24.03 Captions. The captions inserted in this Lease are for convenience
only and in no way define, limit or otherwise describe the scope or intent of
this Lease, or any provision hereof, or in any way affect the interpretation of
this Lease.

        24.04 Entire Agreement. It is expressly understood and agreed by and
between the Landlord and Tenant that this Lease sets forth the promises,
agreements, conditions, inducements and understandings between Landlord and
Tenant relative to the Premises and that there are no promises, agreements,
conditions, understandings, inducements, warranties or representations, either
oral or written, express or implied, between them other than as set forth in
this Lease.

        24.05 Changes in Writing. This Lease may not be altered, changed or
amended except by an instrument in writing signed by both parties hereto.

        24.06 Obligations Survive Expiration. All obligations of Tenant
hereunder not fully performed as of the expiration or earlier termination of the
term of this Lease shall survive the expiration or earlier termination of the
term hereof, including without limitation, all payment obligations with respect
to Impositions, Operating Costs and all obligations concerning the condition of
the Premises. Notwithstanding, any claims relating to the condition of the
Premises, including but not limited to Tenant's obligation, if any, to maintain
or repair the Premises or to make improvements or alterations or to remove or
restore such items, must be presented in writing by Landlord to Tenant within
forty-five (45) days (which time is of the essence) after expiration or
termination of this Lease or such claims shall be irrevocably waived.

        24.07 Partial Invalidity. If any clause or provision of this Lease is
illegal, invalid or unenforceable under present or future laws effective during
the term of this Lease, then and in that event, it is the intention of the
parties hereto that the remainder of this Lease shall not be affected thereby,
and it is also the intention of the parties of this Lease that in lieu of each
clause or provision of this Lease that is illegal, invalid or unenforceable,
there be added as a party of this Lease a clause or provision as similar in
terms to such illegal, invalid or unenforceable clause or provision as may be
possible and be legal, valid and enforceable.

        24.08 Estoppel Certificates. Tenant agrees from time to time

                                       32
<PAGE>

within ten (10) days after request of Landlord, to deliver to Landlord, or
Landlord's designee, an estoppel certificate stating that this Lease is in full
force and effect, the date to which Rent (and Impositions) has been paid, the
unexpired term of this Lease and such other matters pertaining to this Lease as
may be reasonably requested by Landlord. It is understood and agreed that
Tenant's obligation to furnish such estoppel certificates in a timely fashion is
an express obligation under this Lease.

        24.09 Memorandum of Lease. The parties agree upon request of either
party that they shall execute and acknowledge a memorandum of lease for
recording purpose.

        24.10 Brokerage. Landlord and Tenant warrant that no broker other than
Trammell Crow Company was involved in this Lease or the transactions
contemplated hereby. Each party agrees to defend and indemnify the other party
from claims for real estate commission or fees arising out of any acts or
negotiations of the indemnifying party with any broker, realtor or finder other
than Trammell Crow Company. Landlord will pay all commissions due to Trammell
Crow Company.

        24.11 Landlord Limited Liability. It is expressly understood and agreed
that nothing in this Lease shall be construed as creating any liability against
Landlord, or its successors and assigns, personally, and in particular without
limiting the generality of the foregoing, there shall be no personal liability
to pay any indebtedness accruing hereunder or to perform any covenant, either
express or implied, herein contained, and that all personal liability of
landlord, or its successors and assigns, of every sort, if any, is hereby
expressly waived by you, and that so far as Landlord, or its successors and
assigns is concerned you shall look solely to the Building for the payment
thereof.

                                   ARTICLE XXV
                                SPECIAL PROVISION

        25.01 Drinking Water. Provided Tenant provides Landlord with a copy of
the test results, Tenant will have the right to test the drinking water at
Tenant's sole cost and expense.

        25.02 Amenities. The parties acknowledge that the Development includes a
health club and a day care center (the "Amenities"). Employees of Tenant shall
have access to said Amenities upon the same conditions as other tenants in the
Development. The parties acknowledge that the availability of the Amenities was
a material inducement for Tenant to enter into this Lease.

        25.03 Termination of Building Eight Leases. As of the Commencement Date
or if later, at such time as Tenant vacates and surrenders possession of all of
the Building Eight premises that

                                       33
<PAGE>

Tenant currently occupies (including the Towers Perrin lease) under leases with
Landlord, then the leases for those premises shall terminate. The Building Eight
premises currently occupied by Tenant are (i) 4113 Willow Lake Boulevard, (ii)
4105 Willow Lake Boulevard; and (iii) 4101 Willow Lake Boulevard. At the request
of either party made on or after the Commencement Date, the parties will enter
in to a memorandum of termination of lease acknowledging and confirming the
termination of the foregoing Building Eight leases.

        25.04 Contingency. The parties rights and obligations under this Lease
are contingent upon Landlord being able to enter in to a lease termination
agreement with the current tenant of the Building. If Landlord is unable to
enter in to a lease termination agreement with the current tenant of the
Building within thirty (30) days of the Effective Date, then from and after such
date and until such time as a lease termination agreement is entered in to;
either party may terminate this Lease whereupon neither party shall have any
obligation to the other under and pursuant to this Lease.

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

[Execution page immediately follows]

                                       34
<PAGE>

                                            LANDLORD:

                                            AMB PROPERTY II, L.P., a
                                            Delaware limited partnership

                                            By:  AMB Property Corporation,
                                                    a Maryland corporation,
                                                    its general partner
(Witnesses)

------------------------------
                                               By:
                                                  ------------------------------
------------------------------

                                            TENANT:

                                            INTERNATIONAL PAPER COMPANY
(Witnesses)

------------------------------
                                               By:
                                                  ------------------------------
------------------------------

Lease.wlbp.internationalpaper.bldg10.090399

                                       35
<PAGE>

                                   "EXHIBIT A"

Lot 8: (Building 10)

BEING LOT 8 OF THE WILLOW LAKE BUSINESS PARK SUBDIVISION, PLAT BOOK 148, PAGE 1,
ALSO BEING THE WILLOW LAKE ASSOCIATES PROPERTY AS RECORDED IN INSTRUMENT DD-5098
AT THE SHELBY COUNTY REGISTER'S OFFICE LOCATED IN PART OF LOT 4, SECTION 1,
TOWNSHIP 1 SOUTH, RANGE 7 WEST, CHICKASAW CESSION IN MEMPHIS, SHELBY COUNTY,
TENNESSEE AND BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS:

COMMENCING AT THE INTERSECTION OF THE EAST LINE OF OUTLAND ROAD (80 FOOT WIDE
RIGHT-OF-WAY) AND THE NORTH LINE OF RAINES ROAD (106 FOOT WIDE RIGHT-OF-WAY);
THENCE N90*00'00"E ALONG THE NORTH LINE OF RAINES ROAD 2397.14 FEET TO A POINT,
SAID POINT BEING THE SOUTHWEST CORNER OF LOT 9 SAID WILLOW LAKE BUSINESS PARK
SUBDIVISION; THENCE N00*00'00"E ALONG THE WEST LINE OF SAID LOT 9 WILLOW LAKE
BUSINESS PARK SUBDIVISION A DISTANCE OF 496.42 FEET TO THE NORTHWEST CORNER OF
SAID LOT 9 WILLOW LAKE BUSINESS PARK SUBDIVISION AND THE POINT OF BEGINNING;
THENCE CONTINUING N*00'00"E ALONG THE EAST LINE OF THE CATERPILLAR TRACTOR
COMPANY PROPERTY (INSTRUMENT K4-9712 SHELBY COUNTY REGISTER'S OFFICE) A DISTANCE
OF 995.50 FEET TO THE SOUTHWEST CORNER OF LOT 7 OF SAID WILLOW LAKE BUSINESS
PARK SUBDIVISION; THENCE LEAVING SAID WEST LINE S90*00'00" ALONG THE SOUTH LINE
OF SAID LOT 7 A DISTANCE OF 488.14 FEET TO A POINT ON THE WEST LINE OF AN
INGRESS/EGRESS EASEMENT (INSTRUMENT AA-1287 SHELBY COUNTY REGISTER'S OFFICE);
THENCE S00*00'00E ALONG THE WEST LINE OF SAID EASEMENT A DISTANCE OF 139.76 FEET
TO A POINT OF CURVATURE; THENCE CONTINUING ALONG THE WEST LINE OF SAID EASEMENT
ALONG A CURVE TO THE LEFT HAVING A RADIUS OF 653.45 FEET AN ARC LENGTH OF 652.75
FEET (CHORD OF S28*37'2"E, 625.94 FEET) TO THE MOST NORTHERLY WEST CORNER OF LOT
10 OF SAID WILLOW LAKE BUSINESS PARK SUBDIVISION; THENCE LEAVING SAID WEST LINE
S00*00'00"E ALONG THE WEST AND NORTH LINE OF SAID LOT 10 A DISTANCE OF 92.44
FEET TO A POINT, THENCE N90*00'00"W A DISTANCE OF 141.94 FEET TO A POINT; THENCE
S00*00'00"E A DISTANCE OF 35.25 FEET TO A POINT; THENCE N90*00'00"W A DISTANCE
OF 172.72 FEET TO A POINT OF CURVATURE; THENCE ALONG A CURVE TO THE LEFT HAVING
A RADIUS OF 19.00 FEET AN ARC LENGTH OF 14.92 FEET (CHORD OF S67*30'00"W, 14.54
FEET) TO A POINT OF CURVATURE; THENCE ALONG A CURVE TO THE LEFT HAVING A RADIUS
OF 27.00 FEET AN ARC LENGTH OF 21.21 FEET (CHORD OF S22*30'00"W, 20.66 FEET) TO
A POINT OF TANGENCY; THENCE S00*00'00" A DISTANCE OF 19.98 FEET TO A POINT OF
CURVATURE; THENCE ALONG A CURVE TO THE RIGHT HAVING A RADIUS OF 27.00 FEET AN
ARC LENGTH OF 42.41 FEET (CHORD S45*00'00"W, 38.18 FEET) TO A POINT OF TANGENCY;
THENCE N90*00'00"W A DISTANCE OF 53.74 FEET TO A POINT; THENCE S4*38'02"W A
DISTANCE OF 25.08 FEET TO A POINT, SAID POINT BEING THE NORTHEAST CORNER OF SAID
LOT 9 WILLOW LAKE BUSINESS PARK SUBDIVISION; THENCE N90?00'00"W ALONG THE NORTH
LINE OF SAID LOT 9

                                       36
<PAGE>

WILLOW LAKE BUSINESS PARK SUBDIVISION A DISTANCE OF 287.24 FEET TO THE POINT OF
BEGINNING.

                                   "EXHIBIT B"

BEING LOT 7 OF THE WILLOW LAKE BUSINESS PARK SUBDIVISION, (PLAT BOOK 148, PAGE
1), ALSO BEING THE WILLOW LAKE ASSOCIATES PROPERTY AS RECORDED IN INSTRUMENT
DD-5098 AT THE SHELBY COUNTY REGISTER'S OFFICE AND LOCATED IN PART OF LOT 4,
SECTION 1, TOWNSHIP 1 SOUTH, RANGE 7 WEST, CHICKASAW CESSION IN MEMPHIS, SHELBY
COUNTY, TENNESSEE AND BEING MORE PARTICULARLY DESCRIBED AS FOLLOWS:

COMMENCING AT THE INTERSECTION OF THE EAST LINE OF OUTLAND ROAD (80 FOOT WIDE
RIGHT-OF-WAY) AND THE NORTH LINE OF RAINES ROAD (106 FOOT WIDE RIGHT-OF-WAY);
THENCE N90*00'00"E ALONG THE NORTH LINE OF RAINES ROAD 2,397.14 FEET TO A POINT;
THENCE N00*00'00"E ALONG THE EAST LINE OF THE CATERPILLAR TRACTOR COMPANY
PROPERTY (K4-9712) A DISTANCE OF 1491.92 FEET TO THE POINT OF BEGINNING; THENCE
N00*00'00"E CONTINUING ALONG SAID EAST LINE AND THE EAST LINE OF LOT 7, PHASE II
B, OUTLAND BUSINESS CENTER (PLAT BOOK 127, PAGE 4) A DISTANCE OF 490.35 FEET TO
THE SOUTHWEST CORNER OF LOT 6 SAID WILLOW LAKE BUSINESS PARK SUBDIVISION; THENCE
90*00'00"E ALONG THE SOUTH LINE OF SAID LOT 6 A DISTANCE OF 463.14 FEET TO THE
NORTHWEST CORNER OF AN INGRESS-EGRESS EASEMENT (INSTRUMENT AA-1287); THENCE
ALONG THE WEST LINE OF SAID INGRESS-EGRESS EASEMENT ALONG A CURVE TO THE RIGHT
HAVING A RADIUS OF 24.00 FEET, AN ARC LENGTH OF 39.27 FEET (CHORD OF
S45*00'00"E, 35.37 FEET) TO A POINT OF TANGENCY; THENCE CONTINUING ALONG SAID
WEST LINE S00*00'00"E, A DISTANCE OF 465.35 FEET TO THE NORTHEAST CORNER OF LOT
8 OF SAID WILLOW LAKE BUSINESS PARK SUBDIVISION; THENCE N90*00'00"W ALONG SAID
NORTH LINE A DISTANCE OF 488.14 FEET TO THE POINT OF BEGINNING.

                                       37
<PAGE>
                                   EXHIBIT "B"

                                    IDB LEASE

<PAGE>

This instrument prepared by and return to:
J. Philip Jones, Esq.
Martin, Tate, Morrow & Marston, P.C.
6000 Poplar Avenue, Suite 340
Memphis, Tennessee 38119-3971

                          REAL PROPERTY LEASE AGREEMENT
                                (IP-WILLOW LAKE)

        This Lease Agreement (herein "Lease"), made and entered into as of
December 31, 1999, by and between THE INDUSTRIAL DEVELOPMENT BOARD OF THE CITY
OF MEMPHIS AND COUNTY OF SHELBY, TENNESSEE, a public not-for-profit corporation
of the State of Tennessee, with an office in Memphis, Tennessee ("Lessor"), and
AMB PROPERTY II, L.P., a Delaware limited partnership ("Lessee"), and is joined
in for the purposes hereinafter set forth by INTERNATIONAL PAPER COMPANY, a New
York corporation (Applicant") identified in Article I below.

                                    RECITALS

        A. Lessee owns, or has owned, as the case may be, certain real property
located in Memphis, Shelby County, Tennessee, consisting of approximately 12.6
acres of land (more particularly described in Exhibit A (the "Real Property")
attached hereto and being part of the property commonly referred to as Willow
Lake Business Park. The Lessee has entered into, or will enter into, as the case
may be, a lease agreement with Applicant (the "IP Sublease") wherein Lessee, as
owner of the Real Property, as landlord, leased, or will lease, as the case may
be, the Real Property to the Applicant.

        B. Applicant has applied to Lessor for certain property tax incentives
as part of the Pilot Program for the Real Property, which Application is more
particularly described in Article I below.

        C. Lessee has agreed to cooperate with Applicant in obtaining the tax
incentives available under the Pilot Program so long as Lessee suffers no loss
or liability in connection therewith. Such cooperation includes entering into a
transaction with Lessor pursuant to Lessor's Pilot Program.

        D. Lessor is organized pursuant to the provisions of Sections 7-53-101
to 7-53-311 (formerly Sections 6-2801 to 6-2821), inclusive, of Tennessee Code
Annotated, as amended (the "Act"), and is authorized thereunder to fulfill its
public purpose of contributing to increased employment and increasing
manufacturing in Memphis and Shelby County, Tennessee, through the Pilot
Program. The Application for such Pilot Program for Applicant at the Real
Property has been approved by Lessor.

        E. Pursuant to the provisions of Tennessee Code Annotated Section
7-53-305(b), the Lessor has found, and does hereby find, that the PILOT payments
as provided for herein are in furtherance of the Lessor's public purposes as
defined in said section.

        F. In order for Applicant to obtain the tax incentives available under
the Pilot Program, pursuant to the Act, Lessee has conveyed to Lessor fee title
to the Real Property, on condition that Lessor lease the Real Property back to
Lessee pursuant to the terms and conditions of this Lease. By entering into this
Lease, Lessor, Lessee and Applicant intend that the IP Sublease be automatically
converted into a sublease of the Real Property.

        The parties also desire that the Applicant join in the execution of this
Lease as a third-party obligor and beneficiary, as more particularly provided
below.

        NOW, THEREFORE, LESSOR, LESSEE AND APPLICANT AGREE AS FOLLOWS:

                                       1
<PAGE>

        Lessor, for and in consideration of the payments hereinafter stipulated
to be made by Lessee and Applicant, respectively, and covenants and agreements
hereinafter contained and to be kept and performed by Lessee and Applicant,
respectively, does hereby, by these premises, demise, lease, and let unto
Lessee, for the Term and upon the conditions stated herein, the Real Property as
the Real Property is improved as more particularly described hereinafter.

                                    ARTICLE I
                                   DEFINITIONS

        In addition to words and terms elsewhere defined in this Lease, the
following words and terms as used in this Lease shall have the following
meanings, unless some other meaning is plainly intended:

        Applicant: International Paper Company, as identified in the Application
(defined below).

        Application: As defined in Section 3.2 hereof. The Application in its
entirety is incorporated herein by reference. Any capitalized terms used herein
which are defined in the Application shall have the same definition herein as in
the Application.

        Board Counsel: Philip G. Kaminsky, Assistant Shelby County Attorney,
1755 Kirby Parkway, Suite 100, Memphis, Tennessee 38120, or such other person as
the Lessor may hereafter designate in writing to the Lessee.

        Capital Investment: as identified in Section 5.4.

        IP Sublease: That certain agreement dated September 7, 1999, by and
between Lessee, as landlord and Applicant, as tenant, and all amendments as have
been or may be entered into by such parties from time to time.

        Improvements: The improvements constructed upon the Real Property and
affixed thereto as part of the realty as constituting real property fixtures.

        Jobs and Wages: as identified in Section 5.4.

        Lender: Any lending institution which has loaned money or extended
credit to Lessee which indebtedness and/or obligations of Lessee are secured by
a deed of trust or other security instrument encumbering the Real Property or
Lessee's leasehold interest therein, and any other property in addition thereto,
and written notice of the name and address of such Lender has been received by
Lessor.

        Lessee: The legal entity or natural person identified in the first
paragraph of this Lease, or any permitted transferee or assignee pursuant to
Section 3.6 below.

        Pilot: The "Payment in lieu of taxes" program, such payments to be paid
as provided in Section 6.2 hereof.

        Project: The conveyance of the Real Property by Lessee to Lessor, the
leasing of the Real Property by Lessee from Lessor, the subleasing the of Real
Property from Lessee to Applicant, the expenditure of the Capital Investment,
and the creation and maintenance and/or retention of the Jobs and the Wages by
Applicant pursuant to the terms of this Lease, all as more particularly set out
in the Application.

        Real Property: The real property described in Exhibit B attached to this
Lease, and all Improvements thereon.

        Term:  The term of this Lease, as set out in Article III hereof.

                                       2
<PAGE>

                                   ARTICLE II

                         CONSTRUCTION AND/OR RESTORATION

        Section 2.1. Construction and/or Restoration of Improvements.

        (a) Lessor acknowledges that the Improvements for the Real Property have
been completed as of the date of this Lease, and Lessor accepts same in their
"AS IS" condition, with all faults, without representation or warranty by Lessee
of any kind, express or implied, as their condition, merchantability or fitness
for any purpose. In no event shall Lessor be liable for any such contracts,
agreements, purchase orders, and other documents related in any way to the
construction , maintenance, repair, replacement or demolition of the
improvements.

        (b) If Lessee elects to post any development or construction signs
located at or on the Real Property, such signs shall read in part: "The
Industrial Development Board of the City of Memphis and County of Shelby,
Tennessee, has provided financial incentives and other assistance for this
project."

        Section 2.2. Rights against Contractors, Etc.

        (a) Lessor will assign to Lessee (i) all Lessor's right, title and
interest, if any, in and to all warranties and guaranties of any and all
contractors, subcontractors, suppliers, or architects for the furnishing of
labor or material or supervision in connection with the Improvements or any part
thereof, and (ii) any and all rights or causes of action in connection with or
against any of the foregoing.

        (b) In the event of default of any contractor or subcontractor under any
contract made by Lessee in connection with the Improvements, Lessee may, at its
expense, either in its own name or in the name of Lessor, prosecute or defend
any action or proceeding or take any other action involving any such contractor,
subcontractor, surety, or supplier which Lessee deems reasonably necessary, and
in such event Lessor hereby agrees to cooperate fully with Lessee and, at
Lessee's expense, to take all action necessary to effect the substitution of
Lessee for Lessor in such action or proceeding. Lessee shall indemnify Lessor
from all claims, damages, liability, attorney's fees, and court costs if Lessee
shall prosecute or defend any such action or proceeding or take any other action
in Lessor's name. Any net amounts recovered by way of damages, refunds,
adjustments, or otherwise in connection with the foregoing shall be paid to
Lessee.

        Section 2.3. Future Improvements and Alterations. Lessee shall have full
right and authority to make any and all additional improvements to the Real
Property and to modify, replace, remove and demolish the Improvements as Lessee
may elect in its sole and absolute discretion, subject only to such restrictions
as Lessee has accepted or may accept for the benefit of other third parties.

                                   ARTICLE III

                         TERM AND CONCURRENT AGREEMENTS

        Section 3.1. Term. Subject to the terms and provisions herein contained,
this Lease shall be and remain in full force and effect for a Term of seven (7)
years from the date hereof, subject to earlier termination in the event the IP
Sublease is terminated pursuant to the operation of the terms and conditions of
the IP Sublease.

        Section 3.2. Use of Real Property and Compliance with Laws. Applicant
shall promptly comply or cause compliance with or obtain waivers of all laws,
ordinances, orders, rules, regulations, and requirements of duly constituted
public authorities applicable to the Project at no expense to Lessor or

                                       3
<PAGE>

Lessee, whether or not the same are foreseen or unforeseen, ordinary or
extraordinary; provided however, (i) the foregoing obligations of Applicant do
not include any obligation to make structural alterations or improvements to the
Real Property, and (ii) the foregoing obligations of Applicant with respect to
all applicable laws, regulations and building codes relating to any use or
occupancy of the Real Property governing non-discrimination and public
accommodations and commercial facilities ("Public Accommodation Laws"),
including without limitation, the requirements of the Americans with
Disabilities Act, 42 U.S.C. 12-101 and all regulations and promulgations
thereunder, shall not apply to the bathrooms, stairwells and elevators on the
fourth floor, and all improvements constructed therein. Applicant shall
throughout the term of this Lease cause the Project to be used in a manner that
will constitute a "project" within the meaning of Section 7-53-101 of the Act.
Applicant has represented to Lessor in the application filed with Lessor on or
about May 4, 1999, as amended August 10, 1999 (the "Application"), that it will
complete and use the Project for the purposes set out in the Application and
create and/or retain the Jobs at the Wages and make the Capital Investment all
as set out and defined in Section 5.4. Any proposed changes in the use and
operation of the Project must be submitted to Lessor and Lessee for advance
written approval.

        Pursuant and subject to the provisions of Article IX of this Lease,
Lessor reserves the right to terminate this Lease if the use of the Project
becomes materially inconsistent with the representations summarized above and as
stated in the Application. All such representations in the Application shall be
deemed warranties under this Lease and are incorporated herein by reference.

        Section 3.3. Contesting Laws. Neither Lessee nor Applicant shall be
required to comply or cause compliance with such laws, ordinances, orders,
rules, regulations, or requirements, so long as Lessee and/or Applicant, as
applicable, shall give written notice to Lessor, and at its expense, shall be
contesting the same or the validity thereof in good faith and in accordance with
applicable law. Such contest may be made by Lessee and/or Applicant in the name
of Lessor, Lessee, Applicant, or any combination, as Lessee and/or Applicant
shall determine, and Lessor agrees that it will, at no expense to Lessor,
cooperate with Lessee and/or Applicant therein as Lessee and Applicant may
reasonably request. At Lessor's option, Lessee and/or Applicant shall provide
Lessor with such security reasonably satisfactory to Lessor indemnifying Lessor
from all claims, damages, liability, attorney's fees, and court costs if Lessee
and/or Applicant shall pursue any claim or right in Lessor's name.

        Section 3.4. Lessor's Title to Real Property. Lessor has or will acquire
title to the Real Property subject to the encumbrances set out in Exhibit B.
Lessor will not, without the prior written consent of Lessee, directly or
indirectly create or consent to the creation or existence of Lessor's interest
therein, or convey title to the Real Property in any manner whatsoever, except
as otherwise provided herein or as requested or approved by Lessee in writing.
Lessor will promptly consent to and allow Lessee to place any easements
(including, but not limited to, the Property which Lessee believes are necessary
for the operation thereof, and Lessor will promptly execute any and all
documents reasonably requested by Lessee to grant any such easements, all at the
expense of Lessee, so long as such documents contain an express approval thereof
by Lessee, Lessee's direction to Lessor to execute same, and an indemnification
of Lessor acceptable to Lessor, and do not impose any personal liability on
Lessor. Lessor shall have no obligation to obtain any consent or approval by the
Applicant with respect to any such liens, encumbrances or easements on the Real
Property which is requested or placed by Lessee, as aforesaid, and the
Applicant, by its joinder in this Lease, hereby waives any right to consent to
or approve of any of the same.

        Section 3.5. Additional Encumbrances: Subordination of Lessor's Fee:
Estoppel.

        (a) Provided Lessor is notified in writing of the details of any
proposed transaction prior to the closing of such transaction, Lessee, at all
times, shall have the right to encumber by deed(s) of trust and security
agreement(s) or other proper instrument(s) in the nature thereof its right to
use and occupy the Real Property, or portions thereof, but any and all such
encumbrances of the Lessee's leasehold estate shall impose no personal liability
on Lessor, and Lessee shall indemnify Lessor against any losses, costs

                                       4
<PAGE>

or expenses which Lessor may incur as the result of executing any such
encumbrance or subordination agreement requested by Lessee. Upon the execution
and recordation of any such deed(s) of trust, security agreement(s), or
financing statement(s), Lessor shall be notified in writing that such deed(s) of
trust, security agreement(s), or financing statement(s) have been so given and
executed by Lessee, and Lessor shall also be furnished with the address of the
Lender(s) involved in such encumbrance to which copies of notices are to be
mailed. Lessor hereby covenants that it will thereafter contemporaneously mail
to such Lender(s) a duplicate copy of any and all notices in writing which
Lessor may, from time to time, give or serve upon Lessee under and pursuant to
the terms and provisions of this Lease. Unless and until such notice is mailed
to such Lender(s), no action shall be taken by Lessor which would be prejudicial
to such deed(s) of trust, security agreement(s), or instrument(s) in the nature
thereof, or to the rights of the Lender(s) thereunder. If a Lender requires
Lessor to execute any certificate or other closing documents, Lessee shall be
responsible to reimburse Lessor's actual expenses necessarily expended by Lessor
as a result of Lessee's transactions. Lessor shall have no obligation to obtain
any consent or approval by the Applicant with respect to any such encumbrance,
and the Applicant by its joinder in this Lease, hereby waives any right to
consent to or approve of any of the same.

        (b) Such Lender(s) may, at its (their) option, at any time before the
expiration of any cure period for an Event of Default, as provided for herein,
pay any of the rent due hereunder or do any other act or thing required of the
Lessee by the terms hereof, or do any act or thing which may be necessary and
proper to be done in the observance of the covenants and conditions hereof, so
as to cure or avoid an Event of Default. All payments so made, and all things so
done and performed, by any such Lender(s) shall be as effective to cure or avoid
an Event of Default hereunder as the same would have been if done and performed
by the Lessee instead of by any such Lender(s). However, in no event shall such
Lender(s) be required to pay the Basic Rent in order to keep this Lease in full
force and effect.

        (c) If requested by Lessee, Lessor shall subordinate its fee interest in
the Real Property to any encumbrances placed on the Real Property in favor of
any Lender(s), and to the rights, title and interest of any Lender(s) in and to
the Real Property, such subordination to be in form and content reasonably
requested by Lessee on behalf of such Lender(s), including, without limitation,
if requested by Lessee, the execution of deed(s) of trust or security
agreement(s) in favor of such Lender(s) encumbering the fee interest of Lessor;
provided, however, in the event of Lessor's execution of any such subordination,
deed of trust, security agreement or other document, Lessee agrees to indemnify
Lessor against any out-of-pocket direct expenses which Lessor may incur in
executing any such encumbrance. It is understood and agreed that any such
encumbrances shall impose no personal liability on Lessor.

        (d) Lessor acknowledges that the interests of any Lender(s) in the Real
Property shall take priority at all times as necessary in order to protect and
preserve the existence and priority of the collateral or security interest
and/or lien rights of such Lender(s) in and to the Real Property, which at the
same time preserving unto such Lender(s) the rights set forth herein, and in
Section 9.3 of Article IX hereof, to cure the Event of Default hereunder in
order to keep this Lease, and the Pilot, from being terminated.

        Section 3.6.  Subletting and Assignment.

        (a) Lessee may, without the consent of Lessor, assign its interest in
this Lease (including, but not limited to, a transaction provided for in Section
3.5 above), or sublet the Real Property or any part thereof to sublessees, and
approve, deny or condition any sub-assignment or sub-sublease of all or any
portion of the Real Property as permitted under the applicable sublease
therefore or under law (in each case, a "Transfer" or "Transfor"), in the normal
course of Lessee's business or operation of the Real Property and in Lessee's
sole and absolute discretion; provided, however, that an assignment of Lessee's
interest in all or any portion of the Real Property shall terminate any
obligations of the transferor Lessee therefore which arose or related to any
period occurring after the date of such assignment, and further provided, that
no Transfer shall reduce or terminate any of the obligations of Applicant
hereunder. Any Transfer shall be only for lawful and moral purposes. Lessee
shall give Lessor notice of any such

                                       5
<PAGE>

Transfer, and shall provide Lessor with an instrument executed by the assignee
or sublessee certifying that the assignment or sublease is in force and is
subject to all of the terms and provisions of this Lease.

        (b) Applicant may not assign, sublet or transfer its rights or duties
hereunder or under the LP Sublease without the prior written consent of the
Lessor, which consent shall not be unreasonably withheld or delayed, and the
prior written consent of Lessee if and as required under the IP Sublease. Any
Transfer constituting a Transfer of all or a portion of Applicant's interest in
the IP Sublease or rights of occupancy of the Real Property shall comply with
the purposes and conditions set forth in the Application. Any such transfer of
the Applicant's interest in the IP Sublease or the Real Property which is made
with the consent of Lessor, as aforesaid, is subject to the policies and
procedures of the Lessor. A change in the use and operation of the Real Property
from that which is provided for in the Application, shall be deemed a Transfer
of Applicant's interest in the IP Sublease or the Real Property, for which
Lessor's and Lessee's prior consent shall be required, as aforesaid. All
conditions and rights in this Lease applicable to Applicant with respect to an
assignment or sublease of all or any portion of Applicant's interest in the IP
Sublease or rights of occupancy in the Real Property as set forth above, shall
be in addition to, and not in contravention or in lieu of, the applicable
provisions of the IP Sublease respecting assignment and subleasing of the Real
Property.

        (c) In the event of the termination of this Lease pursuant to the
provisions of Article IX hereof, the Lessor expressly agrees that such
termination shall be subject to all the rights and privileges of any and all
permitted sublessees of Lessee under the terms and provisions of their
respective subleases so long as each such sublease shall be approved (if
Lessor's consent to the subletting is required under the provisions of Section
3.6(a) hereof) in writing by Lessor and so long as the sublease under such
sublease shall keep and perform all of the covenants and provisions of their
respective subleases, and shall agree to attorn to Lessor as landlord under the
direct lease from Lessor, as hereinafter provided. Lessor, by its execution of
this Lease, consents to and approves the leasing of the Real Property pursuant
to the IP Sublease. It is agreed that, in the event of the termination of this
Lease pursuant to Article IX hereof, Lessor will thereupon enter into a direct
lease of the Real Property to and for the benefit of such permitted sublessee,
upon all of the same terms and provisions herein set forth and contained
(including, but not limited to, the use provisions set forth in Section 3.2
hereof, and the payment in lieu of taxes provisions set forth in Section 6.2
hereof) for the balance of the Term of this Lease which would have remained, but
for such termination; provided, however, Lessor's obligation to enter into such
direct lease with such permitted sublessee shall be subject to the following
conditions: (i) the termination of this Lease shall not have resulted from the
failure of such permitted sublessee, as Applicant, to perform any of its
undertakings and obligations as set forth or provided in this Lease or in the
Application; (ii) no material uncured breach or event of default shall then be
existing on the part of such permitted sublessee, under the sublease, as to
which notice has been given and the time for curing (as provided in such
sublease) has then expired; (iii) the use of the Real Property shall be for the
purposes set forth and provided in this Lease and in the Application; (iv) the
Project will continue to be used in a manner that will constitute a "project"
within the meaning of Section 7-53-101 of the Act; and (v) Applicant is in
compliance with its obligations and requirements as set forth and provided in
the Application and in this Lease.

        (d) Lessor hereby covenants that it will contemporaneously mail to any
permitted sublessee of Lessee for the Real Property, at the address therefore
provided by Lessee, or otherwise, a duplicate copy of any and all notices in
writing which Lessor may, from time to time, give or serve upon Lessee under and
pursuant to the terms and provisions of this Lease. Unless and until such notice
is mailed to such sublessees, no action shall be taken by Lessor which would be
prejudicial to any such sublease, or to the rights of the sublessee thereunder.
If any sublessee of the Real Property requests that Lessor execute any
certificate or other documents, such sublessee shall be responsible to reimburse
Lessor's expenses, costs, and reasonable attorney fees incurred in reviewing
documents or otherwise expended by Lessor as a result of such sublessee's
transactions, but Lessee shall have no obligation to ensure such payment by such
sublessee.

                                       6
<PAGE>

        (e) Any permitted sub-sublessee of the Real Property may, at its option
and to the extent permitted by its sub-sublease, at any time before the
occurrence of an Event of Default, as defined herein, pay any of the rent due
hereunder or do any other act or thing which may be necessary and proper to be
done in the observance of the covenants and conditions hereof, so as to prevent
the termination of this Lease. All payments so made and all things so done and
performed by such sub-sublessee shall be as effective to prevent the occurrence
of an Event of Default hereunder as the same would have been if done and
performed by Lessee instead of by such sub-sublessee. Nevertheless, no such
payments by a sub-sublessee shall entitle it to an offset against amounts owed
by such sub-sublessee to Applicant, or by Applicant to Lessee or a right of
reimbursement from Lessee to such sub-sublessee.

        Section 3.7. Amendment of Subleases. Lessor hereby agrees that Lessee
may enter into any and all amendments of existing or future subleases of the
Real Property, including, without limitation, the IP Sublease, without the
approval of Lessor, except if such Amendment would cause an Event of Default to
occur under this Lease.

        Section 3.8. Relationship of Subleases to this Lease. Lessor, Lessee and
Applicant acknowledge and agree that the sole purposes of entering into this
transaction and Lessee's participation in the Project is to provide a mechanism
for the Applicant to obtain property tax relief under the Pilot Program, and to
permit Lessor to achieve the Capital Investment and Jobs and Wages in Memphis
and Shelby County. Therefore, Lessor agrees that, except as specifically
provided in this Lease to the contrary, as respects all subleases of the Real
Property which now or may hereafter exist, the terms and conditions of this
Lease shall be subject and subordinate to the terms and conditions of all such
subleases such that (a) with respect to any inconsistency between such subleases
and this Lease, or if any greater burden on Lessee or its sublessees is imposed
by this Lease, the terms of the sublease shall control with respect to the
general subject matter addressed by both instruments, and (b) no termination of
this Lease, whether by enforcement of the provisions of this Lease or by
operation of law, shall serve to terminate or modify the terms, conditions or
effectiveness of such subleases. Notwithstanding the foregoing, with respect to
the IP Sublease, no rights or privileges granted or made available to Applicant
under this Lease shall excuse Applicant's obligations to comply with and observe
each and every term and condition of the IP Sublease, all covenants and
conditions agreed to by Applicant in this Lease shall be in addition to the
covenants and conditions imposed upon Applicant under the IP Sublease, but all
obligations, covenants, undertakings, waivers and consents agreed to by
Applicant under this Lease shall be binding upon Applicant notwithstanding
anything to the contrary in the IP Sublease, and shall survive the termination
of this Lease for any reason.

                                   ARTICLE IV

                                      RENT

        Section 4.1. Basic Rent. Lessee shall pay to the Lessor without notice
or demand as absolutely net basic rental (herein called "Basic Rent") the sum of
One Hundred and No/100 Dollars ($100.00) per annum payable on each annual
anniversary of the date of this Lease.

        Section 4.2. Additional Rent. Lessee shall also pay, as Additional Rent,
those amounts set out in ARTICLE VI hereof. The Additional Rent shall be due by
Lessee in accordance with the applicable provisions of this Lease and, if no
date is specified, then within thirty (30) days after written demand therefor.
If such sums are advanced by a sublessee, such sums shall be credited against
any amounts owed by Lessee to Lessor hereunder. Any sums advanced by Lessor for
or on behalf of Lessee after a default of Lessee shall bear interest at the
highest lawful rate existing on the date of advance.

                                    ARTICLE V

             REPRESENTATIONS, WARRANTIES & INDEMNIFICATION OF LESSOR

                                       7
<PAGE>

        Section 5.1. Lessee's Acceptance of Improvements: No Warranties. Lessee
acknowledges and agrees that Lessor makes no representation or warranty, either
express or implied, and offers no assurance to anyone (except as provided in
ARTICLE XI) as to the condition or title of the Real Property, or that the
Improvements will be suitable for Lessee's or Applicant's purposes. As to the
Lessor only, Lessee accepts the Real Property in its condition as of the date of
the commencement of the Term of this Lease. Lessee agrees not to seek damages or
recourse against Lessor in connection with the condition of the Real Property.

        Section 5.2. Failure or Defect in Title. Lessor shall not be liable to
Lessee or to anyone for any damages resulting from (a) any failure or defect in
Lessor's title which interferes with, prevents, or renders burdensome the use or
occupancy of the Real Property or the compliance by Lessee with any of the terms
of this Lease, or (b) any delay in obtaining possession of all or any part
thereof.

        Section 5.3. Release and Indemnification.

        (a) Lessee and Applicant, for themselves, their respective successors
and assigns, hereby release and forever discharge Lessor, including any
incorporator, member, director, officer, employee, counsel or agent of Lessor,
its successors and assigns, from any claims, demands, causes of action,
accounting, or any other matter arising in connection with the Project,
provided, however, nothing contained herein shall be deemed to release Lessor
from its undertakings pursuant to this Lease.

        (b) Applicant, for itself, its successor and assigns, hereby releases
and forever discharges Lessee, including any incorporator, member, director,
officer, employee, counsel or agent of Lessee, its successors and assigns, from
any claims, demands, causes of action, accounting, or any other matter arising
in connection with the Project.

        (c) Lessee covenants and agrees, at its expense, to pay, and to
indemnify and save Lessor, and any incorporator, officer, director, agent,
counsel, or employee of Lessor, harmless, against and from any and all claims by
or on behalf of any person, firm, corporation, or governmental authority,
arising from (i) the occupation, use, possession, conduct, or management of or
from any work done in or about the Real Property or from the subletting of any
part thereof, including any liability for violation of conditions, agreements,
restrictions, laws, ordinances, or regulations affecting the Real Property or
the occupancy or use thereof, (ii) any condition of the Real Property and the
adjoining sidewalks and passageways, (iii) any breach or default on the part of
Lessee in the performance of any covenant or agreement to be performed by Lessee
pursuant to this Lease, (iv) any act or negligence of Lessee, or any of its
agents, contractors, servants, or employees, or (v) Lessor's ownership of the
Real Property, Lessor being an Owner under the Declaration, the making of this
Lease or any transactions related thereto, and from and against all costs,
reasonable counsel fees, expenses, and liabilities incurred in any action or
proceeding brought by reason of any claim referred to in the foregoing
subsection, except to the extent Applicant is obligated to indemnify Lessor
pursuant to this Lease or otherwise.

        (d) Applicant covenants and agrees, at its expense, to pay, and to
indemnify and save Lessor, and any Incorporator, officer, director, agent,
counsel, or employee of Lessor, harmless, against and from any and all claims by
or on behalf of any person, firm, corporation, or governmental authority,
arising from (i) the occupation, use, possession, conduct, or management of or
from any work done in or about the Real Property or from the sub-assignment or
sub-subletting of any part thereof, including any liability for violation of
conditions, agreements, restrictions, laws, ordinances, or regulations affecting
the Project or the occupancy or use of the Real Property, (ii) any condition of
the Real Property, (iii) any breach or default on the part of Applicant in the
performance of any covenant or agreement to be performed by Applicant pursuant
to this Lease, (iv) any act or negligence of Applicant, or any of its agents,
contractors, servants, employees, or licensees, (v) any accident, injury, or
damage whatsoever caused to any person, firm, or corporation, in or about the
Real Property, or (vi) Applicant's interest in and use and occupancy of the Real
Property, the making of this Lease or any transactions related thereto, and from
and against all

                                       8
<PAGE>

costs, reasonable counsel fees, expenses, and liabilities incurred in any action
or proceeding brought by reason of any claim referred to in this Section.

        (e) Upon notice from Lessor, either Lessee or Applicant, as applicable,
shall defend Lessor or any of its incorporators, officers, directors, agents,
counsel, or employees (collectively, "Lessor's Agents"), in any action or
proceeding brought in connection with any of the above. In the event Lessee or
Applicant shall fail or refuse to defend Lessor or Lessor's Agents when required
above and after receipt of such notice, Lessor shall be entitled to provide its
own defense and charge Lessee, or Applicant, as applicable, with its expenses
incurred in connection therewith.

        (f) The provisions of this Section 5.3 shall survive the termination of
this Lease.

        Section 5.4. Application Representations: Reports.

        (a) Applicant warrants and represents that it will comply with all terms
and conditions of the Application, including without limitation the creation
and/or maintenance of the Jobs at the Wages as represented in the Application,
the timely completion and use of covenants of the Project and the Capital
Investment in the Project, all as represented in the Application; provided,
however, Applicant shall not be deemed to have breached those warranties and
representations as to Jobs, Wages and Capital Investment unless an uncured Event
of Default exists pursuant to Article IX, Section 9.1(b).

        (b) On or before Marsh 1 of each year during the Term of this Lease, or
as otherwise reasonably requested by Lessor, Applicant shall file or cause to be
filed with Lessor a report (the "Report") containing all information required by
Lessor to determine compliance of Applicant with the terms and requirements of
this Lease as well as any other information reasonably requested by the Lessor
to determine such compliance. Each Report shall be certified by an authorized
representative of Applicant. To the extent that any information is represented
in the Report by Lessee, such representation shall be considered to have been
made by Lessee only to its knowledge, without independent obligation to
investigate or verify same, as a reasonable minimum estimate thereof, and Lessor
acknowledges that Applicant is relying solely upon such estimate. Applicant
hereby authorizes Lessor, its agents, servants, employees and representatives,
to inspect the Project, the Real Property and all improvements thereon at any
time during normal business hours. Applicant further authorizes Lessor to obtain
copies of any and all reports filed by Applicant with the State of Tennessee or
any other governmental entity, including, without limitation, reports concerning
the employees or business operations of the Project.

                                   ARTICLE VI

                   TAXES, OTHER CHARGES AND EXPENSES OF LESSOR

        Section 6.1. Agreement to Pay Additional Rent. Lessee agrees to pay to
Lessor or to the appropriate person, entity or governmental agency, as
Additional Rent, during the Term hereof, punctually:

        (a) Each and every cost, expense, and obligation of every kind and
nature, foreseen or unforeseen, for the payment of which Lessor is or shall
become liable by reason of (i) its interests in the Real Property or any portion
thereof, (ii) any right or interest of Lessor of Lessee in or under this Lease,
or (iii) or in any manner connected with or arising out of the possession,
operation, maintenance, alteration, repair, rebuilding, use, or occupancy of the
Real Property or requirements of this Lease.

        (b) All taxes of every type and description, utility charges,
assessments (including, but not limited to, assessments for public improvements
or benefits), payments in lieu of taxes, and all other impositions and charges
of every kind and nature, extraordinary or ordinary, general or special, which
at any time during which shall be levied, assessed, or imposed in connection
with the Real Property.

                                       9
<PAGE>

        (c) All charges for gas, water, sewer, electricity, light, heat, power,
telephone, and other utilities and services used, rendered or supplied to or in
connection with the Real Property which are paid by Lessor. Lessee agrees that
Lessor is not, nor shall it be required, to furnish to Lessee or any other
occupant, any gas, water, sewer, electricity, light, heat, power, or any other
facilities, equipment, labor, materials, or services of any kind. Lessor will
extend any rights it may have to Lessee, and will cooperate with Lessee, at
Lessee's expense, in connection with obtaining the use of any such utilities and
other facilities and services.

        (d) The reasonable expenses of Lessor, not to exceed the sum of One
Thousand and No/100 Dollars ($1,000.00) per annum, which are incurred in
connection with administering the this Lease or performing any act which it is
required to do under this Lease, but specifically excluding salaries, office
overhead, depreciation, or security.

        (e) All of Lessor's closing costs and reasonable expenses incurred, if
any, in connection with the acquisition of the Real Property by Lessor.

        The Applicant shall pay all fees and charges as required by the
Application.

        Section 6.2. Payments in Lieu of Taxes.

        (a) Each year during the Term hereof, Lessee shall make Pilot payments
for the Real Property, in amounts computed as indicated below, as Additional
Rent in lieu of Memphis and Shelby County ad valorem taxes that otherwise would
have been due and payable with regard to the Real Property, which consists of
part of tax parcel number 74-101-28, were it owned by a tax-paying entity and
subject to such taxation:

<TABLE>
<CAPTION>
                                                     Basis of Computation/
                                                     Proportion of Taxes
Period                                               Otherwise Due and Taxable
------                                               -------------------------
<S>                                                  <C>
Until the seventh (7th) anniversary of the date      Now current tax assessment of $_______
hereof (December 31, 2006)                           times the then current millage rate.

From the seventh (7th) anniversary of the date       The then current tax assessment determined
hereof until the termination of this Lease and       as though the Real Property were owned by a
the reconveyance of the Real Property to             taxpaying entity, times the then current
Lessee pursuant to the provisions of this            millage rate.
Lease
</TABLE>

In no event shall such Pilot payments be less than the amount of ad valorem
taxes that were due and payable on the Real Property for the period immediately
preceding calendar year 1999, which amounts of taxes totals $___________ (City)
and $___________ (County). These payments in lieu of taxes shall be paid in the
same manner and to the same tax collectors as ad valorem taxes are paid in the
City of Memphis and Shelby County. Notwithstanding the foregoing or any other
provisions of this Lease, however, it is the express intention of the parties
hereto that, pursuant to the provisions of Tennessee Code Annotated Section
7-53-305, the Real Property and the leasehold interests therein of Lessee, or
any sublessee, shall be exempt from all taxation in the state of Tennessee, and
that the Pilot payments as provided for in this Section 6.2 shall be made by and
accepted from Lessee in lieu of all ad valorem taxes which are or may be
assessed against the Real Property and the leasehold interests therein of Lessee
or any sublessee for and during the term of this Lease. In the event Lessee is
required to pay any ad valorem taxes for that portion of calendar year 1999
which precedes the acquisition of the Real Property by Lessor, Lessee shall be
entitled to a dollar-for-dollar credit for such amount against its first
calendar year payment in lieu of taxes. If, following an Event of Default, the
Real Property should legally be placed on the ad valorem tax rolls of either the
City of Memphis or Shelby County or both, the payment in lieu of

                                       10
<PAGE>

taxes shall terminate and Lessee shall pay ad valorem taxes as required of a
tax-paying entity. In the event Lessee's leasehold interest, but not Lessor's
fee interest, shall become subject to ad valorem taxation, the payment in lieu
of taxes called for hereunder shall continue, but shall be reduced on a
cumulative basis by the amount of ad valorem taxes paid by Lessee with regard to
its leasehold estate in the Real Property.

        All tax bills for payments in lieu of taxes as provided for in Section
6.2 shall be sent to: Lessee, c/o Clark & Clark, 5050 Poplar Avenue, Suite 2200,
Memphis, Tennessee 38157, or to such other entity or address as Lessee may
hereafter designate and provide to the tax collectors.

        (c) In the event that the Real Property is not, at the commencement of
the Term hereof, situated within the City of Memphis or some other municipality
(collectively, a "Municipality") so as to be subject to ad valorem taxation as a
part of a Municipality, but subsequently, by annexation or incorporation,
becomes part of a Municipality during the Term of this Lease, then Lessee shall
make additional payments in lieu of taxes, as Additional Rent, in lieu of the ad
valorem taxes of the Municipality from and after the effective date of the
annexation or incorporation of the Real Property into the Municipality, such
payments to be billed to Lessee, and paid by Lessee to the appropriate tax
collector for the Municipality, upon the same terms and conditions and in the
same manner as provided for the Pilot payments provided in Section (a) above.

        (d) The Pilot payments shall be due and payable on the same dates as ad
valorem tax payments are due to Shelby County, the City of Memphis or any other
applicable Municipality (as the case may be); and if any such Pilot payments are
not paid by the applicable delinquency dates for payment of the corresponding
Shelby County, City of Memphis, or other applicable Municipality ad valorem
taxes (as the case may be), then Lessee shall pay a penalty with respect to such
delinquent Pilot payment from and after the delinquency date in the same amount
as the penalty and all other charges which would be due on the corresponding
Shelby County, City of Memphis, or other applicable Municipality ad valorem
taxes.

        Section 6.3. Other Taxes, Assessments or Other Charges. Except as
provided for in Sections 6.2(b) and (c) above, in the event any local, state, or
national governmental body or agency enacts or imposes any tax, assessment, or
other charge on realty or leasehold interests which are not in existence or
collected as of the date of this Lease, Lessee shall pay said tax, assessment,
or other charge as Additional Rent under this Lease and said tax, assessment, or
other charge, if based on the assessment assigned to realty, shall be calculated
on an assessment determined as though the Real Property were owned by a
tax-paying entity.

        Section 6.4. Survival. The obligations of Lessee to pay any amount due
at the termination of this Lease pursuant to this Article VI, shall survive the
termination of this Lease.

                                   ARTICLE VII

                                    INSURANCE

        Section 7.1. Public Liability Insurance. Lessee shall maintain
commercial general public liability insurance naming Lessor as an additional
insured against claims for bodily injury, death, or property damage occurring
on, in, or about the Real Property in an amount of not less than $1,000,000 for
injury or death of a single person, $3,000,000 for a single accident, and
$500,000 for property damage. This requirement may be met by furnishing more
than one policy required under this Lease through a blanket insurance policy or
policies acceptable to Lessor. Upon written request of Lessor, Lessor shall be
furnished with certificates of such insurance as well as evidence of payment of
the premiums therefore.

        Section 7.2. Renewal. Not less than ten (10) days prior to the
expiration dates of the policies, certificates of the renewal thereof,
reasonably satisfactory to Lessor, shall be deposited with Lessor.

                                       11
<PAGE>

                                  ARTICLE VIII

                             MAINTENANCE AND REPAIR

        Lessor shall have no obligation to, and absent Lessee's prior express
written consent thereto, which consent Lessee may grant, withhold or condition
in Lessee's sole and absolute discretion, shall not make any repairs to or
maintain any portion of the Real Property. Lessee expressly waives the right
contained in any law now or hereafter in effect to make any repairs to the Real
Property or the Improvements at the expense of Lessor, provided, however, the
foregoing shall not prohibit Lessee, or any sublessee of the Real Property if
permitted or required pursuant to its sublease, from making any repairs.

                                   ARTICLE IX

                                DEFAULT: REMEDIES

        Section 9.1. Events of Default. Any one or more of the following events
are herein called "Events of Default":

        (a) The failure by Lessee or Applicant to make any payment of Basic Rent
or Additional Rent for more than thirty (30) days after written notice to Lessee
from Lessor that such Rent has become due and payable and is unpaid.

        (b) The occurrence of any one or more of the following, where such
occurrence is not cured within the cure period as set out hereinafter:

                (i) If Applicant shall fail, within the earlier to occur of (A)
the time period specified in the Application, or (B) three (3) years from the
date hereof, to create or maintain at least 80% of the number of Jobs as
represented by Applicant in the Application or Section 5.4 (a) of this Lease to
be created and/or retained by the Project and such Jobs are not maintained
thereafter (within such 80% parameter) from year to year during the entire Lease
Term; or

                (ii) If Applicant shall fail, within the earlier to occur of (A)
the time period specified in the Application, or (B) three (3) years from the
date hereof, to achieve and to pay at least 80% of the total Wagers for the Jobs
created in conjunction with the Project as represented by Applicant in the
Application or Section 5.4 (a) of this Lease and maintain thereafter (within
such 80% parameter) that level of Wages throughout the Lease Term; or

                (iii) If Applicant or Lessee, as applicable, shall fail, within
the earlier to occur of (A) the time period specified in the Application, or (B)
three (3) years from the date hereof, to contribute at least 90% of its portion
of the total Capital Investment to the Project, or cause such contribution to be
made, as represented by Applicant in the Application, or as required under
Section 5.4 (b) of this Lease.

Upon determination by Lessor that an Event of Default by Applicant as specified
in this Section 9.1(b) has occurred, Lessor shall give written notice of such
default to Lessee and to the Applicant and Applicant shall have a period
thereafter of one hundred twenty (120) days in which to cure such default. It is
provided, however, that notwithstanding the fact that the Applicant may have, at
any time, failed to meet or maintain the criteria set forth in any one or more
of subsections (i), (ii) or (iii) above, no Event of Default shall be deemed to
have occurred under this Subsection 9.1(b) so long as the Project would, under
Lessor's policies, procedures and criteria (including, but not limited to, any
special circumstances which were considered by Lessor) in effect at the time the
Application was approved by the Lessor, nevertheless at least qualify for the
Pilot incentives as provided in Section 6.2 of this Lease, as the same would be
determined taking into consideration the totality of the Jobs, Wages and Capital
Investment then actually

                                       12
<PAGE>

created or being maintained or contributed (as the case may be) by the
Applicant. If Lessor determines that Applicant is diligently pursuing cure of a
default under this Section 9.1(b), Lessor may, in its sole but reasonable
discretion, extend the time to cure such default or defaults.

        (c) Except with respect to the matters set forth in Section 9.1(b) above
(which Section shall govern with respect to such matters), if any other material
representation or warranty made by Applicant, in the Application or in any
statement or certificate furnished by Applicant either required hereby or in
connection with the execution and delivery of this Lease, is untrue in any
material respect as of the date of the issuance or making thereof.

        (d) If Applicant shall abandon the Real Property and the same shall
remain uncared for and unoccupied for more than thirty (30) days after written
notice by Lessor to Lessee and Applicant shall cease to operate the Project or
abandon same for a period of thirty (30) days, in which event, Lessor may cancel
this Lease on thirty (30) days written notice to Lessee and/or Applicant. Lessee
and/or Applicant shall give Lessor at least thirty (30) days written notice of
its intention to abandon the Project or cease operations at the Real Property.

        (e) Applicant's failure to complete construction of the improvements
applicable to the Real Property by the time set forth in the Application,
subject to the provisions of Section 9.2 hereof.

        (f) Failure of Applicant to file on time any Report(s) required under
Section 5.4 hereof and the continuance of any such failure for more than thirty
(30) days after written notice by Lessor to Applicant; or if any information
contained in any such Report is untrue in any material respect.

        (g) The occurrence of a default or an event of default (including, in
any case, the expiration of any permitted period for the curing of any such
default) under any other agreement between Lessor and Applicant, or any
sublessee or sub-sublessee of the Real Property, or any default under any
document executed by Lessee, or Applicant, related to the Project or the Real
Property, including, without limitation, any deeds of trust or other security
documents encumbering the Real Property, any of which such default or event of
default causes the Project to be disqualified as, or cease to constitute, a
"project" within the meaning of Section 7-53-101 of the Act.

        (h) Any material adverse change in the use or operation of the Real
Property and/or the Project from that set forth in the Application without the
prior written consent of Lessor.

        (i) The termination for any reason of the IP Sublease, other than a
termination of the IP Sublease which results from a transfer of Lessee's
interest in the Real Property to the Applicant.

        (j) The failure of Applicant to continuously operate a going business on
the Real Property, in such a manner as to cause an uncured Event of Default
pursuant to Section 9.1(b)(i), (ii) and (iii).

        (k) If default shall be made by Lessee or Applicant in the due
performance of or compliance with any of the terms of this Lease, other than
those referred to in the immediately preceding subsections (a), (b) or (j)
hereof, and such default shall continue for sixty (60) days after Lessor shall
have given Lessee and Applicant written notice of such default; or, in the case
of any such default which cannot with due diligence be cured within such sixty
(60) day period, if Lessee or Applicant (as the case may be) shall fail to
proceed promptly to cure the same and thereafter prosecute the curing of such
default with due diligence, it being intended in connection with any default not
susceptible of being cured with due diligence within sixty (60) days that the
time of Lessee or Applicant within which to cure the same shall be extended for
such period as may be necessary to complete the curing of the same with due
diligence. It is acknowledged and agreed that the cure period provided in this
subsection (j) shall be applicable to the events described in subsections (c)
through (h) above, inclusive.

                                       13
<PAGE>

        Section 9.2. Force Majeure. The provisions of Section 9.1 are subject to
the limitation that if by reason of force majeure, as defined below, either of
Lessee or Applicant (as the case may be) is unable, in whole or in part, to
carry out its agreements and covenants herein contained, other than its
obligation to pay Basic Rent and Additional Rent, Lessee or Applicant (as the
case may be) shall not be deemed in default during the continuance of such
inability.

        The term "force majeure" as used herein shall mean, without limitation,
the following: acts of God, strikes, lockouts, or other industrial disturbances,
acts of public enemies, order of any kind of the government of the United States
or the State of Tennessee, or any of their departments, agencies, or officials,
or any civil or military authority, insurrections, riots, epidemics, landslides,
lightning, earthquake, fire, hurricanes, storms, floods, washouts, droughts,
arrests, restraint of government and people, civil disturbance, explosions,
breakage, or accident to machinery, transmission pipes, or canals, partial or
entire failure of utilities, or any other cause or event not reasonably within
the control of Lessee or of Applicant (as the case may be).

        Lessee or Applicant, as applicable, respectively agree, however, to
remedy with all reasonable dispatch the cause or causes preventing them (as the
case may be) from carrying out their respective agreements and covenants,
provided that the settlement of strikes, lockouts, and other disturbances shall
be entirely within the discretion of Lessee and Applicant (as the case may be)
and they shall not be required to make settlement of strikes, lockouts, and
other disturbances by acceding to the demands of the opposing party or parties
when such course is, in the judgment of Lessee or Applicant (as the case may
be), unfavorable to them.

        Section 9.3. Lessor's Rights to Cure. Except with respect to the matters
set forth in Section 9.1(b) above (as to which matters the rights set forth in
Section 9.4(d) shall solely govern and apply), if Lessee or Applicant at any
time shall fail to make any other payment or perform any other act on its part
to be made or performed under this Lease such that an Event of Default (as
defined in Section 9.1) shall have occurred and then be uncured, Lessor (or
Lender or any permitted sublessee) may (but shall not be obligated to), upon
five (5) days prior written notice to Lessee and Applicant and without waiving
or releasing them from any obligations or defaults hereunder, make any such
payment or perform any such act for their account and at their expense, and may
enter upon the Real Property, for that purpose and take all such action thereon
as may be reasonably necessary therefore. No such entry shall be deemed an
eviction of Lessee. All sums so paid by Lessor (or by Lender or any permitted
sublessee) and all reasonable, necessary and incidental costs and expenses
(including, without limitation, reasonable attorneys' fees and expenses)
incurred in connection with the performance of any such act by Lessor (or by
Lender or any permitted sublessee), together with interest at the highest legal
rate per annum from the date of the making of such payment or the incurring of
such costs and expenses by Lessor (or by Lender or any permitted sublessee),
shall be deemed Additional Rent hereunder and shall be payable by Lessee or
Applicant (as the case may be) to Lessor or to Lender on demand, and Lessee and
Applicant (as the case may be) covenant to pay any such sum or sums with
interest at the rate stated above.

        Section 9.4. Lessor's Rights Upon an Event of Default.

        If an Event of Default occurs and shall be continuing for a period
beyond the time allowed hereunder for curing said default, Lessor may exercise
only those remedies set forth in this Section 9.4 below:

        (a) Lessor may transfer and convey the Real Property to Lessee pursuant
to the provisions of ARTICLE XI below, in which case, this Lease shall terminate
by merger, each sublessee shall immediately and automatically attorn to Lessee,
and all subleases, including, without limitation if otherwise still in effect,
the IP Sublease, shall not terminate but shall survive and automatically
continue in full force and effect as direct leases of the applicable space
within the Real Property and continue pursuant to their respective terms.
Applicant shall execute and deliver to Lessee, within five (5) business days
after written request therefor by Lessee and in a form reasonably requested by
Lessee, any additional

                                       14
<PAGE>

documents evidencing the continuation of the IP Sublease and the attornment of
Applicant to Lessee. In no event shall the entering into and operation of the
Project or termination of the Lease by merger and the continuation of the
subleases and attornment of the sublessees extend the term of any of the
subleases beyond that specifically provided in such subleases.

        (b) Lessor may seek to recover all amounts owed by Lessee or Applicant
hereunder and all Lessor's out-of-pocket costs incurred in seeking such
recovery, but only from the specific party hereto owing same; provided, however,
that such remedies shall be exercised lawfully and in a manner which is not in
contravention of the laws of the State of Tennessee.

        (c) [Deleted]

        (d) In the event of the occurrence of an Event of Default described in
Section 9.1(b) hereof, this Lease shall not be terminated so long as Lessee or
Applicant (as the case may be) complies with the provisions of this Section
9.4(d), but Lessor shall have the option, as hereinafter provided, to make a
recalculation and adjustment (a "Pilot Adjustment") of the Pilot incentives
provided in Section 6.2 of this Lease, and to amend Section 6.2 hereof
accordingly. Any Pilot Adjustment, if made by Lessor, shall be based upon the
Jobs, Wages and/or Capital Investment actually created, paid, or made with
respect to the Project. Any such Pilot Adjustment shall be made so as to produce
and reflect from and after the effective date of the Event of Default (which
includes any period allowed hereunder for the curing of any such default) the
maximum Pilot Incentive (the "Adjusted Pilot Incentive") for which the Project
would have been qualified or entitled under Lessor's policies, procedures and
criteria applicable to the Project at the date the Application was originally
approved by Lessor. In the event Lessor determines to make a Pilot Adjustment,
Lessor shall notify Lessee and Applicant and afford Lessee and Applicant the
opportunity to present such additional information with respect to the Project
and to the proposed Pilot Adjustment, as may be appropriate to the
determination, and Lessee or Applicant (as the case may be) shall promptly
furnish such information as Lessor may request in connection with the making of
such determination. Subject to the foregoing provisions, the decision of Lessor
as to the Adjusted Pilot Incentive shall be in the sole discretion of Lessor. In
the event that any Pilot Adjustment results in a determination that the Pilot
incentives provided in Section 6.2 of this Lease are greater (with respect to
the length of the Term of this Lease) than the Adjusted Pilot Incentive, then
Lessor, Lessee and Applicant (but not Lessee) shall thereupon pay (or cause to
be paid) to the appropriate tax collectors, as an additional payment in lieu of
taxes under Section 6.2 hereof, an amount (hereinafter called the "Recapture
Payment") equal to the difference, if any, between (i) the total amount of the
payments in lieu of taxes actually paid by or for the account of Lessee under
Section 6.2 hereof for the period (hereinafter called the "Recapture Period")
following the occurrence of such Event of Default and until the amendment of
this Lease, as aforesaid, and (ii) the total amount of the payments in lieu of
taxes for which Lessee would be obligated under the Adjusted Pilot incentive for
the Recapture Period (it being acknowledged that from and after the amendment of
this Lease pursuant to the foregoing provisions, Lessee will be making payments
in lieu of taxes based upon the Adjusted Pilot Incentive). It is the intention
of the parties, by the foregoing provisions, to provide that, after the
effective date of the Event of Default, Lessee and/or Applicant (as the case may
be) shall not receive any greater Pilot incentives than they are entitled to as
aforesaid. The obligation for any Recapture Payment(s) required pursuant to this
Section 9.4(d) shall survive the termination of this Lease and shall be the
personal obligations of Applicant, and shall not be an obligation of Lessee and
(any other provision of this Lease to the contrary notwithstanding) the same
shall not constitute a lien upon the Real Property. Applicant hereby consents
and agrees that any action or proceeding to enforce any of its obligations or to
collect any payments due from it may be brought in the courts of the State of
Tennessee in Shelby County, Tennessee, or in the courts of the United States of
America for the Western District of Tennessee.

        (e) All of Lessor's rights under this Section 9.4 and under Section 9.3
are subject and subordinate to Lessee's purchase option set forth in Article XI.

                                       15
<PAGE>

        Section 9.5. Exclusive Remedies. The remedies set forth in this ARTICLE
IX above are the sole and exclusive remedies available to Lessor under this
Lease or at law or equity for the occurrence of an Event of Default under this
Lease.

        Section 9.6. Survival of Lessee's and Applicant's Obligations. No
termination of this Lease pursuant to Section 9.4 hereof, or otherwise, shall
relieve Lessee or Applicant of their respective liability and obligations
hereunder due or accrued on the date of such termination or repossession, all of
which shall survive any such termination or repossession.

        Section 9.7. Lessor's Rights Upon Default Due to Abandonment.
Notwithstanding any other provision of this Lease to the contrary, in the event
of an Event of Default under Section 9.1(d) of this Lease, after the expiration
of any applicable notice and right to cure period contained in this Lease, in
addition to the other rights and remedies provided for in this Lease, Lessee
shall thereupon pay (or cause to be paid) to the appropriate tax collectors as
an additional payment in lieu of taxes under Section 6.2 of this Lease, an
amount (hereinafter called the "Recapture Payment") equal to the difference, if
any, between (i) the total amount of the payments in lieu of taxes actually paid
by or for the account of Lessee under Section 6.2 of this Lease for the period
(hereinafter called the "Recapture Period") following the date of abandonment as
determined by Lessor (the "Abandonment Date"), and (ii) the total amount of
taxes which would have been payable for the Recapture Period as if the Real
Property were then owned by a taxpaying entity. It is the intention of the
parties, by the foregoing provisions, to provide that, after the Abandonment
Date, Applicant shall not receive any greater Pilot incentives that it is
entitled to as determined by Lessor in its sole discretion. The obligation for
any Recapture Payment(s) required to be paid by Lessee (any other provision of
this Lease to the contrary notwithstanding) the same shall constitute a lien
upon the Real Property and enforceable by any and all remedies as are available
to enforce the payment of real property taxes. Lessee hereby consents and agrees
that any action or proceeding to enforce any of its obligations or to collect
any payments due from it may be brought in the courts of the State of Tennessee
in Shelby County, Tennessee, or in the courts of the United States of America
for the Western District of Tennessee. In the event of any conflict between this
Section 9.8 and any other provision of this Lease, this Section 9.8 shall
control.

                                    ARTICLE X

                            CONDEMNATION AND CASUALTY

        Section 10.1 Condemnation Proceeds. If, during the Term, all or any part
of the Real Property is taken by the exercise of the power of eminent domain or
condemnation, Lessee shall receive the entire award for the taking. If the award
is disbursed by the condemning authorities to Lessor, Lessor shall immediately
pay the award to the Lessee. Lessee shall be entitled to the proceeds of any
condemnation award or portion thereof separately awarded for damages to or
takings of Lessee's property or for damages on account of the taking or an
interference with Lessee's right to possession, use, or occupancy of the Real
Property. The parties hereto agree that the acquisition of the Real Property by
Lessor as part of the Project shall not constitute a Condemnation under the IP
Sublease.

                                   ARTICLE XI

            OPTION TO PURCHASE INVESTMENT TAX CREDIT AND LIMITATIONS

        Section 11.1. Option to Purchase. Notwithstanding the lack or the
occurrence of an Event of Default by Lessee or Applicant under this Lease,
Lessee shall have the option at any time during the Term of this Lease, to
purchase the Real Property from Lessor, subject to any then existing
indebtedness created by or for the account of Lessee, as permitted or provided
for in this Lease, for the sum of One Thousand Dollars ($1,000.00) ("Purchase
Price"). The occurrence of an Event of Default and election by Lessor of its
rights under Section 9.1(a) above, or the expiration of the Term of this Lease,
shall automatically constitute an exercise of Lessee's option to purchase the
Real Property under this ARTICLE XI, subject to

                                       16
<PAGE>

payment of the Purchase Price. The exercise of such option by Lessee shall not
relieve Lessee and Applicant from the payment of any monetary obligations which
shall be due and payable, or shall have accrued, under this Lease as of the date
of conveyance pursuant to such exercise, all of which shall be paid by Lessee or
Applicant, as applicable, to Lessor. Lessee shall notify Lessor in writing ten
(10) days before the proposed date of purchase that the Lessee desires to
exercise its option to purchase hereunder. Upon payment by Lessee of the
purchase price in cash plus all expenses related thereto and any other sums due
and payable hereunder, Lessor shall convey the Real Property to Lessee, subject
always to the liens of any existing deeds of trust and to the rights of Lenders,
and this Lease shall terminate by merger.

        Section 11.2. Investment Tax Credit. Lessor and Lessee hereby elect and
agree that for general income tax purposes, Lessee shall be entitled to any and
all deductions, depreciation, investment tax or similar credit, or grants, with
respect to the Real Property now or hereafter authorized by the Internal Revenue
Code, or other legislation, and Lessor agrees to take all reasonable action
necessary to make such investment tax election and obtain the benefits for same
for Lessee at Lessee's request and expense, and to obtain such grants.

        Section 11.3. Conveyance of Title. In the event of any purchase of the
Real Property or any portion thereof by Lessee pursuant to any provision of this
Lease, or otherwise, Lessor shall convey title by quitclaim deed thereto to
Lessee. Lessor shall be obligated to give or assign title to the Real Property
to Lessee in the same condition that existed on the first day of the Term of
this Lease, subject to the encumbrances set forth in Exhibit B and as thereafter
created by or for the account of Lessee, as permitted or provided for in this
Lease; provided, however, that Lessor acknowledges and agrees that Lessor has no
authority or right to encumber the Real Property or Lessor's interest therein by
any encumbrances other than (i) those set forth on Exhibit C, (ii) those which
Lessee has subsequently requested to be placed or caused to be placed against
the Real Property, (iii) those which Lessee has subsequently approved in writing
to be placed against the Real Property, or (iv) those for which Lessee is
responsible under the terms and provisions of this Lease. Any other conveyance
or encumbrance (other than those described in clauses (i) through (iv) inclusive
of the preceding sentence) by or for the account of Lessor shall in all respects
be subject and subordinate to Lessee's leasehold interest as created under this
Lease and to Lessee's right to acquire title to the Real Property, free and
clear of any such other conveyances or encumbrances, pursuant to Lessee's
exercise of its option to purchase the Real Property pursuant to this Article
XI; and any such other conveyance or encumbrance, and any rights or liens
created thereunder or arising therefrom shall be automatically terminated,
released and extinguished by the conveyance of the Real Property to Lessee by
Lessor by quitclaim deed as provided for in this Section 11.3, and thereafter
all such conveyances, encumbrances, rights or liens shall be void and of no
further effect. Subject to the foregoing, Lessee shall accept such title,
subject, however, to (i) any liens, encumbrances, charges, exceptions, and
restrictions not created or caused by Lessor or Lessor's Agents, and (ii) any
laws, regulations, and ordinances.

        Section 11.4. Survival of Rights. All provisions of this Article XI
shall survive the expiration of the Term of this Lease (including any extensions
thereof) or the termination of this Lease pursuant to any provision hereof or
for any reason (including, but not limited to, any termination pursuant to
Article IX or Article X hereof).

                                   ARTICLE XII

                                  MISCELLANEOUS

        Section 12.1. Recording. This Lease shall be executed, acknowledged and
recorded in the proper public office for the recordation of deeds in Shelby
County, Tennessee, if requested by any party.

        Section 12.2. Waivers. No waiver of any breach shall affect or alter
this Lease or constitute a waiver of any other then existing or subsequent
breach.

                                       17
<PAGE>

        Section 12.3. [Deleted]

        Section 12.4. No Claims Against Lessor. Except as provided herein,
nothing contained in this Lease shall constitute any consent or request by
Lessor, express or implied, for the performance of any labor or services or the
furnishing of any materials or other property in respect of the Real Property or
any part thereof, nor give Lessee or Applicant any right, power, or authority to
contract for or permit the performance of any labor or services or the
furnishing of any materials or other property in such fashion as would permit
the making of any personal claim against Lessor.

        Section 12.5. Quiet Enjoyment. The Lessor does not make any
representation or covenant that Lessee shall have quiet and peaceful possession
of the Demised Premises; however, Lessor agrees that it will not take, nor
permit any persons or entities claiming lawfully by, through or under Lessor to
take, any action to interfere with Lessee's peaceful and quiet enjoyment of the
Demised Premises and that in the event the peaceful and quiet enjoyment of the
Demised Premises shall be denied to Lessee or contested by anyone other than a
person or entity claiming lawfully by, through or under Lessee, Lessor shall
upon request of Lessee join where necessary in any proceeding to protect and
defend the quiet enjoyment of Lessee, provided that Lessee shall pay the entire
cost of any such proceeding and reimburse, indemnify, and hold harmless Lessor
from any cost or liability whatsoever in connection with such proceeding.

        Section 12.6. Governing Law; Entire Agreement. This Lease shall be
governed exclusively by the provisions hereof and by the applicable laws of the
State of Tennessee, and, together with the action taken by the Lessor granting
the Pilot incentives with respect to the Project set forth in the minutes of the
meeting of the Board of Directors of the Industrial Development Board held on
May 19, 1999, and on August 18, 1999, and the Application (collectively, the
"Related Documents"), expresses the entire agreement of the parties hereto.
Neither party hereto shall be bound by any agreement or representation to the
other party which is not expressly set forth in this Lease and the Related
Documents and/or the Reports.

        Section 12.7. Severability. In the event that any clause or provision of
this Lease shall be held to be invalid by any court of competent jurisdiction,
the invalidity of such clause or provision shall not affect any of the remaining
provisions hereof.

        Section 12.8. Notice. All notices, certificates, demands, requests,
consents, approvals, and other similar instruments under this Lease shall be in
writing and shall be deemed to have been properly given and received if
delivered in person or if sent by United States certified or registered mail,
postage prepaid, or by Federal Express, priority overnight service or other
comparable service, to the Lessor, Lessee or Applicant (as the case may be) at
such addresses as they respectively may have designated from time to time in
writing, and if to any Lenders under Section 3.05, or any permitted sublessee
under Section 3.06, addressed to their principal officers, or at such addresses
as said Lenders or said permitted sublessees shall have designated from time to
time in writing to Lessor and Lessee. At the commencement of this Lease:

Lessor's address is: 125 N. Main Street, Room 468, Memphis, Tennessee 38103,
with a copy to Board Counsel;

Lessee's address is: c/o Trammell Crow Company, 6000 Poplar Avenue, Suite 400,
Memphis, Tennessee 38119;

Applicant's address is: 6400 Poplar Avenue, Memphis, Tennessee 38197, Attention:
General Counsel.

Other sublessees' addresses: to be provided by Lessee when available.

Delivery in person shall be effective on the date of delivery. Delivery by mail
shall be effective three (3) days from the date of posting in the United States
Mail. Delivery by Federal Express, priority overnight

                                       18
<PAGE>

service or other comparable service shall be effective on the first business day
after deposit of such notice with such service.

        Section 12.9. No Default Certificates. Lessor, Lessee and Applicant
agree at any time and from time to time, upon not less than twenty (20) days
prior written request by the other party or by any Lender, or by any permitted
sublessee, to execute, acknowledge, and deliver a statement in writing
certifying that this Lease is in full force and effect and that they know of no
default (or if there is a default, the precise grounds therefor) and the date to
which the Basic Rent and other charges have been paid in advance, if any.

        Section 12.10.Headings. Headings in this Lease are for convenience of
reference only and shall not define or limit the provisions thereof.

        Section 12.11.Construction of Certain Words. Wherever the sense of this
document requires it, the singular shall be construed to include the plural and
the plural the singular, and wherever the masculine, feminine, or neuter gender
is used, each shall be construed to include either or both of the others if the
sense of this document so requires.

        Section 12.12.Successors. The terms and provisions of this Lease shall
be binding upon and inure to the benefit of the parties hereto and their
respective successors and assigns.

        Section 12.13.Counterparts. This Lease may be executed in multiple
counterparts, each of which shall be an original but all of which together shall
constitute but one and the same instrument.

        Section 12.14.Amendments. This Lease may be modified or amended only by
an instrument in writing signed by the parties (or their respective successors
or assigns).

        Section 12.15.Performance by Lessee. Lessee may satisfy any or all of
its undertakings and obligations provided for in this Lease by causing its
permitted sublessee, including, without limitation, the Applicant, to perform
the same.

        Section 12.16.Lessor's and Lessee's Limitation of Liability - No
Personal Liability. Notwithstanding anything to the contrary in this Lease, no
officer, director, employee or member of Lessor, Lessee or Applicant,
respectively, nor Lessor, shall have any personal liability for any default by
Lessor or Lessee or Applicant in any of its obligations under this Lease.

        Section 12.17.No Third-party Beneficiaries. The representations,
warranties and covenants made by Lessee under this Lease are made solely for the
benefit of THE INDUSTRIAL DEVELOPMENT BOARD OF THE CITY OF MEMPHIS AND COUNTY OF
SHELBY, TENNESSEE, and for no other person or entity, including, without
limitation, the successors and assigns of such person or entity, without the
prior express written consent of Lessee, which consent, Lessee may grant,
withhold or condition in its sole and absolute discretion.

                                  ARTICLE XIII

                              ENVIRONMENTAL MATTERS

        Section 13.1. Lessee's Environmental Representations and Warranties.

        (a) Lessee has delivered (or will cause to be delivered) to Lessor a
copy of that certain Level I Environmental Site Assessment dated
_________________, prepared by _______________________ and styled
"____________________________" (The "Phase I Report") concerning the
environmental condition of the Real Property.

                                       19
<PAGE>

        (b) For purposes of this Lease, any federal, state, county or local
statute, law, regulation, rule, ordinance, code, license or permit relating to
environmental matters, including but not limited to the Comprehensive
Environmental Response, Compensation and Liability Act of 1980 as amended by the
Superfund Amendments and Reauthorization Act of 1986, 42 Section U.S.C. 9601 et
seq., the Resource Conservation and Recovery Act of 1976 as amended by the
Hazardous and Solid Waste Amendments of 1984, 42 U.S.C. Section 6901 et seq.,
the Clean Air Act of 1986, as amended, 42 U.S.C. Section 7401 et seq., the Clean
Water Act of 1977, as amended, 33 U.S.C. Section 1251 et seq., the Toxic
Substances Control Act of 1976, 15 U.S.C. Section 2601 et seq., the National
Environmental Policy Act of 1975, 42 U.S.C. Section 4321 et seq., the Safe
Drinking Water Act of 1974, as amended, 42 U.S.C. Section 300 et seq., the
Emergency Planning and Right-to-Know Act of 1982, 42 U.S.C. Section 11001 et
seq., the Tennessee Water Quality Control Act, Tenn. Code Ann. Section 69-3-101,
et seq., the Tennessee Air Quality Act, Tenn. Code Ann. Section 68-201-101, et
seq., the Tennessee Solid Waste Disposal Act, Tenn. Code Ann. Section
68-211-101, et seq., the Tennessee Hazardous Waste Management Act, Tenn. Code
Ann. Section 68-212-101, et seq., the Tennessee Petroleum Underground Storage
Tank Act, Tenn. Code Ann. Section 68-215-101, et seq., or any other federal,
state or local statute, law, ordinance, code, rule, regulation, order or decree,
regulating, relating to or imposing liability or standards of conduct concerning
any petroleum, petroleum byproduct (including, but not limited to, crude oil,
diesel oil, fuel oil, gasoline, lubrication oil, oil refuse, oil mixed with
other waste, oil sludge, and all other liquid hydrocarbons, regardless of
specific gravity), natural or synthetic gas, or hazardous, toxic, radioactive or
any other regulated substance, product, material, waste, pollutant or
contaminant which are defined as "hazardous substances," "hazardous materials,"
"hazardous waste," "toxic substances," or other similar designations by federal,
state or local laws, regulations or ordinances, are hereinafter defined as
"Hazardous Waste", and all of the foregoing, as may now or at any time hereafter
be in effect, are hereinafter defined as "Environmental Laws". Lessee covenants
and agrees, at its expense, to pay, and to indemnify and save Lessor, and any
incorporator, officer, director, agent, counsel, or employee of Lessor,
harmless, against and from any and all claims by or on behalf of any person,
firm, corporation, or governmental authority, arising from (i) the presence of
any Hazardous Waste on the Real Property, and (ii) any liability for violation
of Environmental Laws, and from and against all costs, reasonable counsel fees,
expenses, and liabilities incurred in any action or proceeding brought by reason
of any claim referred to in this Section 13.1, except to the extent Applicant is
obligated to indemnify Lessor pursuant to this Lease or otherwise.

        (c) All representations, warranties, covenants, agreements and
indemnities of Lessee contained in this Article XIII shall survive the Term of
this Lease or any extensions hereof and the consummation of the transactions
contemplated in this Lease.

        Section 13.2. Applicant's Environmental Representations and Warranties.
Applicant represents and warrants to Lessor and its successors and assigns that
the Real Property will at all times comply with, and will not violate, in
connection with the use, maintenance or operation of the Real Property by
Applicant and the conduct of its business related thereto and therein, any
applicable Environmental Laws regulating, relating to or imposing liability or
standards of conduct concerning any Hazardous Waste, as may now or at any time
hereafter be in effect.

        Section 13.3. Additional Applicant Representations and Warranties.
Without limiting the generality of Section 13.02, Applicant further represents
and warrants to Lessor, its successors and assigns that:

        (a) Applicant will, in its use, maintenance and operation of the Real
Property at all times receive, handle, use, store, treat, ship and dispose of
all Hazardous Waste in strict compliance with all applicable Environmental Laws,
and will continue to do so during the Term of this Lease and any extension
thereof.

        (b) Except as may be shown in the Phase I Report, Applicant has no
actual knowledge of or information regarding any Hazardous Waste on the Real
Property.

                                       20
<PAGE>

        (c) To the best of Applicant's knowledge, information and belief, there
are no violations of any Environmental Laws requiring any work, repairs,
construction or capital expenditures with respect to the Real Property and it
has no knowledge or information, nor has it received any notice of such
violations.

        (d) To the best of Applicant's knowledge, information and belief, except
in strict compliance with all applicable Environmental Laws, no Hazardous Waste
has been released into the environment, or deposited, discharged, placed or
disposed of at, on or near the Real Property, nor has the Real Property been
used at any time by any person or entity as a landfill or a waste disposal site.

        (e) No notices of any violation of any of the matters referred to above
relating to the Real Property or its use have been received by Applicant, and
there are no writs, injunctions, decrees, orders or judgments outstanding, no
lawsuits, claims, proceedings or investigations pending as to it or (to the best
of its knowledge, information and belief) threatened, relating to the ownership,
use, maintenance or operation of the Real Property, nor (to the best of its
knowledge, information and belief) is there any basis for such lawsuits, claims,
proceedings or investigations being instituted or filed.

        Section 13.4. More Applicant Representations and Warranties. Applicant
further represents and warrants to Lessor, its successors and assigns that,
except as may be referenced in the Phase I Report:

        (a) To the best of its knowledge, information and belief, there are no
monitoring wells on the Real Property for monitoring Hazardous Waste.

        (b) To the best of its knowledge, information and belief, there are no
underground storage tanks on the Real Property.

        (c) To the best of its knowledge, information and belief, there is no
evidence of PCB contamination from any power transformer, capacitor, or any
other source on the Real Property.

        (d) To the best of its knowledge, information and belief, there is no
asbestos containing material (ACM) on the Real Property.

        (e) It knows of no fact or circumstance that may give rise to any future
civil, criminal, or administrative proceedings against it relating to
environmental matters involving the Real Property.

        Section 13.5. Applicant's Continuing Responsibility for Environmental
Matters. Applicant covenants at its cost and expense, to remove or take remedial
action with regard to any Hazardous Waste released to the environment at, on, or
from the Real Property during the Term of this Lease or any extension thereof
for which any removal or remedial action is required pursuant to any
Environmental Laws, provided that:

        (a) No such removal or remedial action shall be taken except after
reasonable advance written notice to Lessor; provided, however, that no notice
shall be required if immediate action is required in order to comply with the
requirements of any laws, rules, ordinances or regulations of any governmental
entity or immediate action would diminish the extent of any environmental
problem or hazardous condition.

        (b) Applicant shall indemnify Lessor for any action taken by Applicant,
in accordance with Section 13.6 hereof to Lessor's satisfaction.

        Applicant shall at all times retain any and all liabilities arising from
the handling, treatment, storage, transportation or disposal of Hazardous Waste
by it or by any of its contractors.

        Section 13.6. Applicant's Indemnification.

                                       21
<PAGE>

        (a) Applicant shall indemnify and hold Lessor and its officers,
directors, agents, counsel and employees harmless from and against any and all
liabilities, losses, claims, penalties, damages (including, without limitation,
consequential damages, interest, penalties, fines and monetary sanctions), and
costs (collectively, hereinafter "Loss"), and attorneys' and consultants' fees
and expenses, court costs and all other out-of-pocket expenses (collectively,
hereinafter "Expense") incurred or suffered by Lessor by reason of, resulting
from, or in connection with, or arising in any manner whatsoever out of the
breach of any warranty or covenant or the inaccuracy of any representation of
Applicant contained or referred to in this Article XIII. Lessor shall be
entitled to conduct its own investigation in connection therewith and provide
its own defense and charge Applicant with its reasonable expense incurred in
connection therewith, including any Loss or Expense.

        (b) All representations, warranties, covenants, agreements and
indemnities of Applicant contained herein shall survive the Term of this Lease
or any extensions hereof and the consummation of the transactions contemplated
in this Lease, and shall not be affected by any investigation by or on behalf of
Applicant or by any information Applicant may have or obtain with respect
thereof.

                                   ARTICLE XIV

                              JOINDER OF APPLICANT

        Applicant joins in this Lease for the purpose of making its
representations, warranties, covenants and agreements as expressly set forth in
this Lease, and Applicant agrees that all such representations, warranties,
covenants and agreements made by it herein shall survive the expiration or
termination of this Lease for any reason.

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

                   [SIGNATURE AND ACKNOWLEDGMENT PAGES FOLLOW]

                                       22
<PAGE>

                 INTERNATIONAL PAPER COMPANY WILLOW LAKE PILOT -
                            APPLICANT SIGNATURE PAGE

                                       APPLICANT:

                                       INTERNATIONAL PAPER COMPANY

                                       By:
                                          --------------------------------------
                                       Title:
                                             -----------------------------------

STATE OF
        -----------------
COUNTY OF
          ---------------

        Before me, the undersigned Notary Public in the state and county
aforesaid, personally appeared _______________________, with whom I am
personally acquainted (or proved to me on the basis of satisfactory evidence)
and who acknowledged (herself)himself to be the _______________________ of
INTERNATIONAL PAPER COMPANY, the within named bargainor, a corporation, and that
(she)he as such _______________________, being authorized so to do, executed the
foregoing instrument for the purposes therein contained by signing the name of
the corporation by (herself)himself as such _______________________.

        WITNESS my hand and official seal at office this ______ day of December,
1999.

                                             -----------------------------------
                                             NOTARY PUBLIC

My commission expires:

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

                                       23
<PAGE>

                 INTERNATIONAL PAPER COMPANY WILLOW LAKE PILOT -
                              LESSEE SIGNATURE PAGE

                                            LESSEE:

                                            AMB PROPERTY II, L.P., a Delaware
                                            limited partnership

                                            By: AMB Property Corporation, a
                                                Maryland corporation, its
                                                general partner

                                            By:
                                               ---------------------------------
                                            Title:
                                                  ------------------------------

STATE OF MARYLAND
COUNTY OF

        Before me, the undersigned Notary Public in the county and state
aforesaid, personally appeared _______________, with whom I am personally
acquainted, and who acknowledged himself to be the _______________ of AMB
Property Corporation, a Maryland corporation, the general partner of AMB
Property II, L.P., a Delaware limited partnership, the within named bargainor,
and that he as such officer of AMB Property Corporation, being duly authorized
so to do, executed the foregoing instrument for the purposes therein contained
by signing the name of the corporation by himself as such officer and that AMB
Property Corporation, as such general partner of AMB Property II, L.P., being
duly authorized so to do, executed the foregoing instrument for the purposes
therein contained by signing its name as the general partner of AMB Property II,
L.P.

        WITNESS my hand and official seal this ______ day of December, 1999.

                                             -----------------------------------
                                             NOTARY PUBLIC

My commission expires:
                      ---------------------

                                       24
<PAGE>

                     INTERNATIONAL PAPER WILLOW LAKE PILOT -
                           LESSOR (IDB) SIGNATURE PAGE

                                            LESSOR:

                                            THE INDUSTRIAL DEVELOPMENT BOARD OF
                                            THE CITY OF MEMPHIS AND COUNTY OF
                                            SHELBY, TENNESSEE

                                            By:
                                               ---------------------------------
                                            Title:
                                                  ------------------------------

                                            ATTEST:

                                            By:
                                               ---------------------------------
                                            Title:
                                                  ------------------------------

STATE OF TENNESSEE
COUNTY OF SHELBY

        Before me, the undersigned, a Notary Public in and for the County and
State aforesaid, personally appeared ____________________, and
____________________, with whom I am personally acquainted (or proved to me on
the basis of satisfactory evidence), and who, upon oath, acknowledged themselves
to be ____________________ and ____________________ of THE INDUSTRIAL
DEVELOPMENT BOARD OF THE CITY OF MEMPHIS AND COUNTY OF SHELBY, TENNESSEE, a
public not-for-profit corporation of the State of Tennessee, the within named
bargainor, a corporation, and that they as such ____________________ and
____________________, being authorized so to do, executed the foregoing
instrument for the purposes therein contained, by signing the name of the
corporation by themselves as ____________________ and ____________________.

        WITNESS my hand and official seal, at office this ______ day of
December, 1999.

                                             -----------------------------------
                                             NOTARY PUBLIC

My commission expires:

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

                                       25
<PAGE>

                                    EXHIBIT A

                                   WILLOW LAKE
                                LEGAL DESCRIPTION

Parcel 6: (Bldg. 10)

Being the CMSM-Nonconnah Associates #2 Limited Partnership (formerly known as
Crow-Brindel-Mitchell #4 Limited Partnership) property (instruments at 0800,
BD-2964 and AU-3692 in the Register's Office of Shelby County, Tennessee)
located in part of Lot 4, Section 1, Township 1 South, Range 7 West, Chickasaw
Cesston, Shelby County, Tennessee, and being more particularly described as
follows:

Commencing at the intersection of the east line of Outland Road (80 foot wide
right-of-way) and the north line of Raines Road (106 foot wide right-of-way);
thence N90 degrees00'00"E along the north line of Raines Road 2397.14 feet to a
point, said point being the southwest corner of the Crow-Farnsworth-Mitchell
parcel (Instrument V9-3631 Shelby County Register's Office); Thence N00
degrees00'00"E along the west line of the Crow-Farnsworth-Mitchell parcel a
distance of 496.42 feet to the northwest corner of the Crow-Farnsworth-Mitchell
parcel and the point of beginning: thence continuing N00 degrees00'00"E along
the east line of the Caterpillar Tractor Company property (Instrument K4-9712
Shelby County Register's Office) a distance of 995.50 feet to a point; thence
leaving said west line S90 degrees00'00"E a distance of 488.14 feet to a point
on the west line of an ingress-egress easement (Instrument AA-1287 Shelby County
Register's Office); thence S00 degrees00'00"E along the west line of said
easement a distance of 139.76 feet to a point of curvature; thence continuing
along the west line of said easement along a curve to the left having a radius
of 653.45 feet an arc length of 652.75 feet (chord of S28 degrees37"2"E 625.94
feet) to a point; thence leaving said west line S00 degrees00'00"E a distance of
92.44 feet to a point; thence N90 degrees00'00"W a distance of 141.94 feet to a
point; thence S00 degrees00'00"E a distance of 35.25 feet to a point; thence N90
degrees00'00"W a distance of 172.72 feet to a point of curvature; thence along a
curve to the left having a radius of 19.00 feet an arc length 14.92 feet (chord
of S67 degrees30'00"W, 14.54 feet) to a point of tangency; thence S45
degrees00'00"W a distance of 115.88 feet to a point of curvature; thence along a
curve to the left having a radius of 27.00 feet an arc length of 21.21 feet
(chord of S22 degrees30'00"W, 20.66 feet) to a point of tangency; thence S00
degrees00'00"E a distance of 19.98 feet to a point of curvature; thence along a
curve to the right having a radius of 27.00 feet an arc length 42.41 feet (chord
S45 degrees00'00"W, 38.18 feet) to a point of tangency; thence N90
degrees00'00"W a distance of 58.74 feet to a point; thence S4 degrees38'02"W a
distance of 25.08 feet to a point, said point being the northeast corner of the
Crow-Farnsworth-Mitchell parcel; thence N90 degrees00'00"W along the north line
of the said Crow-Farnsworth-Mitchell parcel a distance of 287.24 feet to the
point of beginning.

                                       26
<PAGE>

This instrument prepared by
and return to:
J. Philip Jones, Esq.
Martin, Tate, Morrow & Marston, P.C.
6000 Poplar Avenue, Suite 340
Memphis, Tennessee 38119-3971

                FIRST AMENDMENT TO REAL PROPERTY LEASE AGREEMENT
                        (INTERNATIONAL PAPER-WILLOW LAKE)

        THIS FIRST AMENDMENT TO REAL PROPERTY LEASE AGREEMENT ("Agreement") made
and entered into as of December 31, 1999, by and between THE INDUSTRIAL
DEVELOPMENT BOARD OF THE CITY OF MEMPHIS AND COUNTY OF SHELBY, TENNESSEE, a
public-not-for-profit corporation of the State of Tennessee, with an office in
Memphis, Tennessee ("Lessor"), and AMB PROPERTY II, L.P., a Delaware limited
partnership ("Lessee"), and is joined in by INTERNATIONAL PAPER COMPANY, a New
York corporation ("Applicant").

                                    RECITALS:

        A.      Lessor, Lessee and Applicant entered into that certain Real
                Property Lease Agreement dated as of December 31, 1999 appearing
                of record under Instrument No. JY 9378 in the Register's Office
                of Shelby County, Tennessee (the "Lease"), whereby Lessor leased
                to Lessee certain real property commonly known as Buildings 10
                and 11 located at 4049 Willow Lake Boulevard, Memphis, Shelby
                County, Tennessee, being more particularly described in Exhibit
                "A" attached hereto (the "Real Property"), in order to implement
                a payment-in-lieu-of-tax ("PILOT") transaction for Applicant,
                all as more fully set forth in the Lease. All defined terms
                herein not otherwise herein defined shall have the meanings set
                forth in the Lease.

        B.      Lessee and Applicant are parties to that certain Lease Agreement
                dated as of September 17, 1999 (the "IP Sublease") wherein
                Applicant leased from Lessee the Real Property.

        C.      The Real Property conveyed by Lessee to Lessor and leased back
                to Lessee pursuant to the Lease, and which is also subleased by
                Lessee to Applicant pursuant to the IP Sublease, consist of tax
                parcel numbers 74-101-28 ("Parcel 28") and 74-101-36 ("Parcel
                36"), however section 6.2 of the Lease only included Parcel 28
                and should have included Parcel 36 as well.

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

        1. The recitals of fact set forth above are hereby adopted as true and
correct statements of fact as though set forth verbatim in the agreement portion
hereof.

        2. Section 6.2(b) of the Lease is hereby amended and restated as
follows:

        (b) Each year during the Term hereof, Lessee shall make Pilot payments
for the Real Property, in amounts computed as indicated below, as Additional
Rent in lieu of Memphis and Shelby County ad valorem taxes that otherwise would
have been due and payable with regard to the Real Property, which consists of
tax parcel numbers 74-101-28 and 74-101-36, were it owned by a tax-paying entity
and subject to such taxation:

                                       27
<PAGE>

<TABLE>
<CAPTION>
                                                      Basis of Computation/
                                                      Proportion of Taxes
Period                                                Otherwise Due and Taxable
------                                                -------------------------
<S>                                                   <C>
Until the seventh (7th) anniversary of the            Now current tax assessment as to Parcel
date hereof (December 31, 2006)                       28 of $2,686,080, and now current tax
                                                      assessment as to Parcel 36 of $91,880,
                                                      for a total now current tax assessment of
                                                      $2,777,960 times the then current millage
                                                      rate.

From the seventh (7th) anniversary of the date        The then current tax assessment determined
hereof until the termination of this Lease and        as though the Real Property were owned by a
the reconveyance of the Real Property to              taxpaying entity, times the then current
Lessee pursuant to the provisions of this             millage rate.
Lease
</TABLE>

In no event shall such Pilot payments be less than the amount of ad valorem
taxes that were due and payable on the Real Property for the period immediately
preceding the calendar year 1999, which amount of taxes total $74,404.42 (City)
and $95,087.23 (County). Notwithstanding the foregoing, in the event the tax
assessment applicable to the Demised Premises for such year is reduced as a
result of the final determination of an appeal of the assessment, or is reduced
by the Shelby County Tax Assessor or otherwise, then the amount of the current
tax assessment set forth above shall be correspondingly reduced in direct
proportion to such reduction. These payments in lieu of taxes shall be paid in
the same manner and to the same tax collectors as ad valorem taxes are paid in
the City of Memphis and Shelby County. Notwithstanding the foregoing or any
other provisions of this Lease, however, it is the express intention of the
parties hereto that, pursuant to the provisions of Tennessee Code Annotated
Section 7-53-305, the Real Property and the leasehold interests therein of
Lessee, or any sublessee, shall be exempt from all taxation in the state of
Tennessee, and that the Pilot payments as provided for in this Section 6.2 shall
be made by and accepted from Lessee in lieu of all ad valorem taxes which are or
may be assessed against the Real Property and the leasehold interests therein of
Lessee or any Sublease for and during the term of this Lease. In the event
Lessee is required to pay any ad valorem taxes for that portion of calendar year
which precedes the acquisition of the Real Property by Lessor. Lessee shall be
entitled to a dollar-for-dollar credit for such amount against its first
calendar year payment in lieu of taxes. If, following an Event of Default, the
Real Property should legally be placed on the ad valorem tax rolls of either the
City of Memphis or Shelby County or both, the payment in lieu of taxes shall
terminate and Lessee shall pay ad valorem taxes as required of a tax-paying
entity. In the event Lessee's leasehold interest, but not Lessor's fee interest,
shall become subject to ad valorem taxation, the payment in lieu of taxes called
for hereunder shall continue, but shall be reduced on a cumulative basis by the
amount of ad valorem taxes paid by Lessee with regard to its leasehold estate in
the Real Property.

        All tax bills for payments in lieu of taxes as provided for in Section
6.2 shall be sent to: Lessee, c/o Trammell Crow Company, 6000 Poplar Avenue,
Suite 400, Memphis, Tennessee 38119, or to such other entity or address as
Lessee may hereafter designate and provide to the tax collectors.

        3. All other terms and conditions of the Lease are hereby ratified and
affirmed and shall continue in full force and effect.

        IN WITNESS WHEREOF, the parties have executed this Agreement as of the
date first above written.

                   [SIGNATURE AND ACKNOWLEDGMENT PAGES FOLLOW]

                                       28
<PAGE>

                 INTERNATIONAL PAPER COMPANY WILLOW LAKE PILOT -
                            APPLICANT SIGNATURE PAGE

                                            APPLICANT:

                                            INTERNATIONAL PAPER COMPANY

                                            By:
                                               ---------------------------------
                                            Title:
                                                  ------------------------------

STATE OF
        -----------------
COUNTY OF
          ---------------

        Before me, the undersigned Notary Public in the state and county
aforesaid, personally appeared _________________________, with whom I am
personally acquainted (or proved to me on the basis of satisfactory evidence)
and who acknowledged (herself)himself to be the _________________________ of
INTERNATIONAL PAPER COMPANY, the within named bargainor, a corporation, and that
(she)he as such _________________________, being authorized so to do, executed
the foregoing instrument for the purpose therein contained by signing the name
of the corporation by (herself)himself as such _________________________.

        WITNESS my hand and official seal at office this ______ day of December,
1999.

                                             -----------------------------------
                                             NOTARY PUBLIC

My commission expires:
                      ---------------------

<PAGE>

                 INTERNATIONAL PAPER COMPANY WILLOW LAKE PILOT -
                              LESSEE SIGNATURE PAGE

                                     LESSEE:

                                             AMB PROPERTY II, L.P., a Delaware
                                             limited partnership

                                             By: AMB Property Corporation, a
                                                 Maryland corporation, its
                                                 general partner

                                            By:
                                               ---------------------------------
                                            Title:
                                                  ------------------------------

STATE OF MARYLAND
COUNTY OF
          ------------------

        Before me, the undersigned Notary Public in the county and state
aforesaid, personally appeared _____________________, with whom I am personally
and who acknowledged himself to be the _____________________ of AMB Property
Corporation, a Maryland corporation, the general partner of AMB Property II,
L.P., a Delaware limited partnership, the within named bargainor, and that he as
such officer of AMB Property Corporation, being duly authorized so to do,
executed the foregoing instrument for the purpose therein contained by signing
the name of the corporation by himself as such officer and that AMB Property
Corporation, as such general partner of AMB Property II, L.P., being duly
authorized so to do, executed the foregoing instrument for the purposes therein
contained by signing its name as the general partner of AMB Property II, L.P.

        WITNESS my hand and official seal at office this ______ day of December,
1999.

                                             -----------------------------------
                                             NOTARY PUBLIC

My commission expires:
                      ---------------------

<PAGE>

                 INTERNATIONAL PAPER COMPANY WILLOW LAKE PILOT -
                           LESSOR (IDB) SIGNATURE PAGE

                                            LESSOR:

                                            THE INDUSTRIAL DEVELOPMENT BOARD OF
                                            THE CITY OF MEMPHIS AND COUNTY OF
                                            SHELBY, TENNESSEE

                                            By:
                                               ---------------------------------
                                            Title:
                                                  ------------------------------

                                            ATTEST:

                                            By:
                                               ---------------------------------
                                            Title:
                                                  ------------------------------

STATE OF TENNESSEE
COUNTY OF SHELBY

        Before me, the undersigned, a Notary Public in and for the County and
State aforesaid, personally appeared ______________________________________, and
______________________________________ with whom I am personally acquainted (or
proved to me on the basis of satisfactory evidence) and who, upon oath,
acknowledged themselves to be _____________________________ and _________ of THE
INDUSTRIAL DEVELOPMENT BOARD OF THE CITY OF MEMPHIS AND COUNTY OF SHELBY,
TENNESSEE, a public not-for-profit corporation of the State of Tennessee, the
within named bargainor, a corporation, and that they as such
_________________________________ and _________________________________, being
authorized so to do, executed the foregoing instrument for the purposes therein
contained by signing the name of the corporation by themselves as
______________________________________ and
______________________________________.

        WITNESS my hand and official seal at office this ______ day of December,
1999.

                                             -----------------------------------
                                             NOTARY PUBLIC

My commission expires:

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

<PAGE>
                                   EXHIBIT "C"

                              PLAN OF THE PREMISES

                                   [Drawing]

<PAGE>
                                   EXHIBIT "D"

                                INSPECTION REPORT

<PAGE>

BALDWIN, SHAWN
================================================================================

FROM:       Nora E Baker [Nora.Baker@ipaper.com[
SENT:       Tuesday, January 08, 2002 4:57 PM
TO:         Baldwin, Shawn
CC:         Apolinsky, Craig; William R Brennan; Paul J Karre; Cato Ealy; Mark
            Azzarello; Angelia G Peli
SUBJECT:

Shawn,

With this last piece of information from Exult related to the inspection of the
premises, Bill and I authorize you to release the signature pages to Exult.
Please coordinate the closing with Brian Copple, reminding him to provide us
with a Fed reference number for the wire transfer.

Call us with any questions.

Regards,
Nora and Bill

---------------------- Forwarded by Nora E Baker/BusDev&Plan/IPAPER on
01/08/2002 04:41 PM --------------------------

Mark Azzarello
01/08/2002 04:19 PM

To:  Nora E Baker/BusDev&Plan/IPAPER, William R
Brennan/Legal/IPAPER@IPAPER
cc:
bcc:
Subject:  4049 Willow Lake Blvd Building Walkthrough 1/8/02

The items listed are known structural items which IP should be required to
repair. They were issues prior to Exult being on the scene.

Hope this is what you need.

Mark

---------------------- Forwarded by Mark Azzarello/HR/IPAPER on
01/08/2002
03:17 PM --------------------------

"Koenig, Jim" jim.Koenig@exult.net on 01/08/2002 02:53:19 PM

To:  mark.azzarello@ipaper.com
cc:  "Copple, Brian" Brian.Copple@exult.net
bcc:
Subject:  4049 Willow Lake Blvd Building Walkthrough 1/8/02

<PAGE>

Mark:

The walkthrough of the facility today indicates that the building is as
represented by IP. The following maintenance items were noted during the
walkthrough:

Back of Bay 4 - leaky ceiling - rain damage
Back of Bay 4 - leaky windows/carpets soak during rain
Cubicle 4-114 - leaky ceiling - rain damage
Cubicle 2-163 - leaky ceiling - rain damage
Conference room 2-010 entrance - leaky ceiling - rain damage
South kitchen - lose faucet/faulty disposal

Regards & thanks;

Jim

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00042-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00042-of-00352.parquet"}]]