Document:

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                                                                   EXHIBIT 10.57

                               SECOND AMENDMENT TO

                   PROVISIONAL WAIVER AND STANDSTILL AGREEMENT

         THIS SECOND AMENDMENT TO PROVISIONAL WAIVER AND STANDSTILL AGREEMENT
(this "Second Amendment") is made and entered into as of the 14th day of July,
2000, by the Lenders party to the Credit Agreement identified below and FIRST
UNION NATIONAL BANK, as Agent for the Lenders, and RURAL/METRO CORPORATION, a
corporation organized under the laws of Delaware (the "Borrower").

                              Statement of Purpose

         Pursuant to the Provisional Waiver and Standstill Agreement dated as of
March 14, 2000 (as amended, restated, supplemented or otherwise modified, the
"Waiver Agreement"), the Borrower, the Agent and the Lenders, each a party to
the Amended and Restated Credit Agreement dated as of March 16, 1998 (as amended
by the First Amendment dated as of June 30, 1998 and as further amended,
restated, supplemented or otherwise modified, the "Credit Agreement"), agreed to
waive the Acknowledged Defaults provisionally for a period of 30 days after
March 14, 2000 and to defer the exercise of remedies during such period, subject
to the express terms and provisions of the Waiver Agreement.

         Pursuant to the First Amendment to the Provisional Waiver and
Standstill Agreement dated as of April 13, 2000 (the "First Amendment"), the
Borrower, the Lenders and the Agent agreed, among other things, to continue to
waive the Acknowledged Defaults provisionally until July 14, 2000, or earlier if
certain other specified events occur, and to continue negotiations with the
Agent and the Lenders to amend or otherwise restructure the Credit Agreement.
The Borrower, the Agent and the Lenders are continuing to negotiate but have not
yet reached an agreement on such amendment or restructuring and the Borrower
has, therefore, requested an additional period of time in which to continue such
negotiations.

         The Lenders and the Agent are willing to continue to waive the
Acknowledged Defaults provisionally for an additional period of time and to
defer the exercise of remedies in respect of the Acknowledged Defaults during
such period subject to the express terms and provisions of this Second
Amendment. This Second Amendment shall be deemed to be one of the Loan Documents
under and pursuant to the Credit Agreement.

         NOW THEREFORE, in consideration of the premises and the mutual
covenants contained herein and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:
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         1. Effect of Amendment and Acknowledgments by Borrower. Except as
expressly amended hereby, the First Amendment, the Waiver Agreement, the Credit
Agreement and each other Loan Document, shall be and remain in full force and
effect. The amendments granted in this Second Amendment are specific and limited
and shall not constitute a modification, acceptance or waiver of any other
provision of the First Amendment, the Waiver Agreement, the Credit Agreement,
the other Loan Documents or any other document or instrument entered into in
connection therewith, or a future modification, acceptance or waiver of the
provisions set forth therein. For avoidance of doubt, but in no way limiting the
scope and breadth of the previous sentences in this paragraph, each Credit Party
hereby reaffirms each of the acknowledgments and agreements made by it in
Sections 1 (except as expressly amended in Paragraph 3(a) below), 6 and 7 of the
Waiver Agreement as if each such acknowledgment and agreement was made as of the
date hereof.

         2. Capitalized Terms. All capitalized undefined terms used in this
Second Amendment shall have the meanings assigned thereto in the Waiver
Agreement.

         3. Amendment of Waiver Agreement. The Waiver Agreement shall be hereby
amended as follows:

         a. Section 1 shall hereby be amended by deleting paragraph 1(c) and
replacing it in its entirety with the following:

                  "(c) The Loans outstanding as of the date hereof are in an
         amount equal to $146,559,153.00 (the "Existing Loans") and the L/C
         Obligations outstanding as of the date hereof are in an amount equal to
         $6,515,000.00 (the "Existing L/C Obligations", and together with the
         Existing Loans, the "Existing Extensions of Credit") and no Credit
         Party has any defense or right of offset with respect to such amounts."

         b. Section 2 shall hereby be amended by deleting Section 2 and
replacing it in its entirety with the following:

                  "Provisional Waiver and Limited Deferral. The Lenders and the
         Agent respectively agree to waive the Acknowledged Defaults
         provisionally and to defer the exercise of any rights or remedies
         arising by reason of Events of Default that have occurred solely as a
         result of the occurrence of the Acknowledged Defaults until that date
         (as so extended and as may be further extended, the "Waiver Maturity
         Date") which is the earliest to occur of (a) October 16, 2000; (b) the
         occurrence of any Event of Default other than (i) the Acknowledged
         Defaults or (ii) any breach of the financial covenants that are the
         subject of the Acknowledged Defaults as of the fiscal quarters ending
         March 31, 2000, June 30, 2000 and September 30, 2000; (c) any Event of
         Default (as such term is defined in the Senior Note Indenture (as
         defined below)) that shall have occurred under the Indenture dated as
         of March 16, 1998, by and among the Borrower, the subsidiaries acting
         as Guarantors thereto, and U.S. Bank National Association, a national
         banking association, successor to the First National Bank of Chicago,
         as Trustee (the "Senior Note

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         Indenture"); or (d) the breach of any of the further conditions or
         agreements provided in the Waiver Agreement as amended by the First
         Amendment and this Second Amendment, it being agreed that the breach of
         any such further condition or agreement shall constitute an immediate
         Default and Event of Default under the Credit Agreement."

         c. Section 3 shall hereby be amended by deleting paragraph 3(b)(i) and
replacing it in its entirety with the following:

            "(i) The Aggregate Commitment shall hereafter be further reduced and
         the Existing Loans repaid by an amount equal to: (A) one hundred
         percent (100%) of the gross cash proceeds, net of all reasonable costs
         of sale and taxes paid or payable as a result thereof by the Borrower
         and its Subsidiaries and net of such other liabilities, costs and
         expenses as are reasonably acceptable to the Agent and the Lenders,
         from the sale or other disposition of assets by the Borrower or any of
         its Subsidiaries from and after March 14, 2000 (including any
         Borrower's or its Subsidiary's equity ownership in any Person), (B) one
         hundred percent (100%) of the gross cash proceeds received by the
         Borrower or any of its Subsidiaries in connection with the Disputed
         Receivables (as defined below), and (C) one hundred percent (100%) of
         the gross cash proceeds received by the Borrower or any of its
         Subsidiaries from any and all receivables from their respective
         business operations wherever located which the Borrower elects to
         shutdown at its option (net of expenses, termination costs, costs of
         professionals and other direct costs related to the shutdown of such
         business operations, which expenses shall include severance and other
         employee-related expenses in respect of the shutdown of such business
         operations and payment of open accounts payable balances subsequently
         paid or payable by Borrower or any of its Subsidiaries in respect of
         such business operations for which services were rendered prior to such
         shutdown); provided that (I) any and all receivables generated by the
         Fort Worth, Texas operations shall be excluded from the requirements
         set forth in this clause (C) and (II) Disputed Receivables shall be
         excluded from the requirements set forth in this clause (C) and subject
         to the requirements set forth in clause (B) above. Notwithstanding the
         foregoing, (X) up to an aggregate amount of two million ($2,000,000)
         dollars of the gross cash proceeds (the "Carve Out") realized upon any
         disposition of assets or shutdown of operations set forth in the
         preceding clauses (A) and (C), net of the expenses and costs referred
         to in the preceding clauses (A) and (C), shall be exempt from this
         paragraph 3(b)(i), and (Y) the Borrower agrees that this provision
         shall not be deemed to permit the sale of assets not otherwise
         permitted under the Credit Agreement. All reductions and prepayments
         set forth in this paragraph shall be made immediately upon receipt of
         the applicable cash proceeds and, for any transactions subject to
         clause (C) of this paragraph 3(b)(i), the identification of any
         applicable adjustments to such proceeds; provided, that all adjustments
         to any proceeds received by the Borrower or its Subsidiaries shall be
         completed, and the applicable amounts turned over to the Lenders within
         ten (10) Business Days after the end of the month in which such funds
         are received unless the Lender Financial Consultant agrees to provide
         the Borrower additional time to complete its adjustments. As used
         herein, the term "Disputed Receivables" shall mean those receivables,
         net of reasonable collection costs, if any, disputed with
         Medicare/Medicaid carriers in Texas which were accrued as

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         of December 31, 1999 and which have an aging of no less than 176 days
         past the date of service as of April 30, 2000."

         d. Section 4 shall hereby be amended by deleting paragraph 4(b)(v) and
replacing it in its entirety with the following:

            "(v)        No later than the last day of each calendar week, a
                        written report comparing the actual cash flow of the
                        Borrower and its Subsidiaries during the preceding week
                        to the projected cash balance for such week set forth in
                        the Cash Flow Projection (as defined below), which
                        written report shall be in the form and substance
                        satisfactory to the Lender Financial Consultant,
                        Policano & Manzo LLP; and"

         e. Section 4 shall hereby be further amended by adding the following
paragraph 4(b)(viii) to the end of paragraph 4(b):

            "(viii)     commencing on August 31, 2000 and no later than the last
                        calendar day of each month thereafter, the Borrower
                        shall submit a written report acceptable in form and
                        substance to the Lender Financial Consultant,
                        calculating the amounts received by the Borrower and its
                        Subsidiaries for the preceding calendar month with
                        respect to the amounts due to the Agent and Lenders
                        pursuant to paragraph 3(b)(i)(C) herein, and such report
                        shall include a reconciliation of net cash proceeds
                        receipts as compared to the final "Phase I Shutdown
                        Plan" presented to the Lender Financial Consultant, the
                        Agent and the Lenders."

         f. Section 4 shall hereby be further amended by deleting paragraphs
4(e), 4(g), 4(h) and 4(j) and replacing them in their entirety with the
following paragraphs 4(e), 4(g), 4(h) and 4(j):

         "(e) Intentionally omitted."

         "(g) Each calendar week, the Borrower and its Subsidiaries shall
maintain a cash balance of no less than fifty percent (50%) of the projected
cash balance for such week set forth in the Cash Flow Projection.

         (h) The amount of disbursements in each two (2) consecutive week period
by the Borrower and its Subsidiaries shall not exceed by more than five percent
(5%) the amount of disbursements for such two (2) week period set forth in the
Cash Flow Projection; provided , that the Borrower and its Subsidiaries may use
the Carve Out or any Excess Cash that is not required to be turned over to the
Lenders to make any additional disbursements; and, provided further, that any
reasonable fees paid to the Investment Banker (as defined below) shall be
excluded from the calculation of the foregoing disbursement."

         "(j) No later than (i) August 12, 2000 the Borrower shall have engaged
an investment banker (the "Investment Banker") for the purpose of identifying
and disposing of

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         non-core business operations of the Borrower and its Subsidiaries , and
         (ii) September 30, 2000 the Investment Banker shall have completed an
         offering memorandum in respect of the sale of such operations. The
         Agent and the Lenders shall be provided with an executed copy of the
         engagement letter between the Borrower and the Investment Banker
         promptly upon such letter's execution. Subject to applicable
         confidentiality agreements, the Agent and the Lenders shall, in
         addition, be provided upon request reasonable access to the Investment
         Banker and shall be further provided with copies of all reports,
         analyses, and other work-product of such Investment Banker when such
         information is delivered to the Borrower."

         g. Section 4 shall hereby be further amended by adding the following
paragraphs 4(k) and 4(l) to the end of Section 4:

            "(k) No later than October 1, 2000, the Borrower on behalf of itself
        and its Subsidiaries shall have completed and delivered a comprehensive
        written proposal for the restructuring of the Debt evidenced by the
        Credit Agreement of the Borrower and its Subsidiaries to the Agent and
        the Lenders.

            (l) No later than October 1, 2000, the Borrower and its Subsidiaries
        shall have completed and delivered their "Phase II Shutdown Plan" to the
        Agent and the Lenders."

         h. Section 9 shall hereby be amended by deleting paragraph 9(a) and
replacing it in its entirety with the following:

            "(a) No later than the date of this Second Amendment, the Borrower
        shall pay to the Agent and the Lenders, for distribution to the Lenders
        pro rata in accordance with their Commitment Percentages, (i) a fee in
        an amount equal to $500,000.00 which fee was fully earned on March 14,
        2000 and (ii) an additional fee in an amount equal to $100,000.00."

         4. Release. Each Credit Party, on behalf of itself and any Person
claiming by, through, or under such Credit Party, acknowledges that it has no
claim, counterclaim, setoff, action or cause of action of any kind or nature
whatsoever ("Claims") against all or any of the Agent, the Lenders or any of the
Agent's or the Lenders' directors, officers, employees, agents, attorneys,
financial advisors, accountants, legal representatives, successors and assigns
(the Agent, the Lenders and their directors, officers, employees, agents,
attorneys, financial advisors, accountants, legal representatives, successors
and assigns are jointly and severally referred to as the "Lender Group"), that
directly or indirectly arise out of or are based upon or in any manner connected
with any "Prior Event" (as defined below), and each Credit Party, on behalf of
itself and any Person claiming by, through or under such Credit Party, hereby
releases the Lender Group from any liability whatsoever should any Claims
nonetheless exist. As used herein the term "Prior Event" means any transaction,
event, circumstances, action, failure to act or occurrence of any sort or type,
whether known or unknown, which occurred, existed, was taken, permitted or begun
prior to the execution of this Second Amendment and occurred, existed, was
taken, permitted or begun in accordance with, pursuant to or by virtue of any
terms of this Second Amendment, the transactions referred to herein, any Loan
Document or oral or written

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agreement relating to any of the foregoing, including without limitation any
approval or acceptance given or denied.

         5. Representations and Warranties. By its execution hereof, the
Borrower hereby certifies on behalf of itself and the other Credit Parties that
each of the representations and warranties set forth in the Credit Agreement and
the other Loan Documents is true and correct as of the date hereof as if fully
set forth herein, and that as of the date hereof no Default or Event of Default
(other than Events of Default occurring as a result of the occurrence of the
Acknowledged Defaults) has occurred and is continuing. Additionally, the
Borrower represents and warrants that, since April 13, 2000, no event which has
had, or could reasonably be expected to have, a Material Adverse Effect has
occurred, except as previously disclosed in writing to the Agent.

         6. Conditions. The effectiveness of this Second Amendment shall be
conditioned upon the following:

         (a) The following documents shall have been duly authorized and
executed by the parties thereto, shall be in full force and effect and no
default shall exist thereunder, and the Borrower shall have delivered original
counterparts thereof the Agent:

             (i)          this Second Amendment, duly executed and delivered by
                          the Credit Parties, the Agent and the Lenders
                          constituting Required Lenders;

             (ii)         a cash flow projection (the "Cash Flow Projection")
                          for the Borrower and its Subsidiaries for each week up
                          through and including October 16, 2000 which shall be
                          attached hereto as Exhibit "A" and which shall be in
                          the form and substance satisfactory to the Lender
                          Financial Consultant; and

             (iii)        such other documents, certificates and instruments as
                          the Agent reasonably requests.

         (b) The Borrower shall have paid all outstanding fees and expenses, to
the extent that the Borrower has received an invoice for such fees and expenses,
through the date hereof of Stroock & Stroock & Lavan LLP and the Lender
Financial Consultant.

         7. Governing Law. THE WAIVER AGREEMENT, AS AMENDED BY THE FIRST
AMENDMENT AND AS AMENDED HEREIN, AND EACH OTHER LOAN DOCUMENT, UNLESS OTHERWISE
EXPRESSLY SET FORTH THEREIN, SHALL BE GOVERNED BY, CONSTRUED AND ENFORCED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NORTH CAROLINA, WITHOUT REFERENCE TO
THE CONFLICTS OR CHOICE OF LAW PRINCIPLES THEREOF.

         8. Miscellaneous.

         a. Reversal of Payments. To the extent the Borrower
makes a payment or payments to the Agent for the ratable benefit of Lenders
pursuant to the Waiver Agreement, as amended by

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the First Amendment and as amended herein, the Notes or any other Loan Document
which payments or proceeds or any part thereof are subsequently invalidated,
declared to be fraudulent or preferential, set aside and/or required to be
repaid to a trustee, receiver or any other party under any bankruptcy law, state
or federal law, common law or equitable cause, then, to the extent of such
payment or proceeds repaid, the Obligations or part thereof intended to be
satisfied shall be revived and continued in full force and effect as if such
payment or proceeds had not been received by the Agent.

         b.       Arbitration.

                              (i) Binding Arbitration. Upon demand of any party,
                  whether made before or after institution of any judicial
                  proceeding, any dispute, claim or controversy arising out of,
                  connected with or relating to the Waiver Agreement, as amended
                  by the First Amendment and as amended herein, the Notes or any
                  other Loan Documents ("Disputes"), between or among parties to
                  this Second Amendment, the Notes or any other Loan Document
                  shall be resolved by binding arbitration as provided herein.
                  Institution of a judicial proceeding by a party does not waive
                  the right of that party to demand arbitration hereunder.
                  Disputes may include, without limitation, tort claims,
                  counterclaims, claims brought as class actions, claims arising
                  from Loan Documents executed in the future, or claims
                  concerning any aspect of the past, present or future
                  relationships arising out or connected with the Loan
                  Documents. Arbitration shall be conducted under and governed
                  by the Commercial Financial Disputes Arbitration Rules (the
                  "Arbitration Rules") of the American Arbitration Association
                  (the "AAA") and Title 9 of the U.S. Code. All arbitration
                  hearings shall be conducted in Charlotte, North Carolina. The
                  expedited procedures set forth in Rule 51, et seq., of the
                  Arbitration Rules shall be applicable to claims of less than
                  $1,000,000. All applicable statutes of limitation shall apply
                  to any Dispute. A judgment upon the award may be entered in
                  any court having jurisdiction. The panel from which all
                  arbitrators are selected shall be comprised of licensed
                  attorneys. The single arbitrator selected for expedited
                  procedure shall be a retired judge from the highest court of
                  general jurisdiction, state or federal, of the state where the
                  hearing will be conducted. The arbitrators shall be appointed
                  as provided in the Arbitration Rules.

                              (ii) Preservation of Certain Remedies.
                  Notwithstanding the preceding binding arbitration provisions,
                  the Agent and the Lenders preserve, without diminution,
                  certain remedies that the Agent and the Lenders may employ or
                  exercise freely, either alone, in conjunction with or during a
                  Dispute. The Agent and the Lenders shall have and hereby
                  reserve the right to proceed in any court of proper
                  jurisdiction or by self help to exercise or prosecute the
                  following remedies: (A) all rights to foreclose against any
                  real or personal property or other security by exercising a
                  power of sale granted in the Loan Documents or under
                  applicable law or by judicial foreclosure and sale, (B) all
                  rights of self help including peaceful occupation of property
                  and collection of rents, set off, and peaceful possession of
                  property and (C) obtaining provisions or ancillary remedies
                  including injunctive

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                  relief, sequestration, garnishment, attachment, appointment of
                  receiver and in filing an involuntary bankruptcy proceeding.
                  Preservation of these remedies does not limit the power of any
                  arbitrator to grant similar remedies that may be requested by
                  a party in a Dispute.

         c. Waiver of Jury Trial. TO THE EXTENT PERMITTED BY APPLICABLE LAW, THE
AGENT, EACH LENDER AND THE BORROWER HEREBY IRREVOCABLY WAIVE THEIR RESPECTIVE
RIGHTS TO A JURY TRIAL WITH RESPECT TO ANY ACTION, CLAIM OR OTHER PROCEEDING
ARISING OUT OF ANY DISPUTE IN CONNECTION WITH THE WAIVER AGREEMENT, AS AMENDED
BY THE FIRST AMENDMENT AND AS AMENDED HEREIN, THE NOTES OR THE OTHER LOAN
DOCUMENTS, ANY RIGHTS OR OBLIGATIONS HEREUNDER OR THEREUNDER, OR THE PERFORMANCE
OF SUCH RIGHTS AND OBLIGATIONS.

         d. Survival of Terms of Agreement. The waivers, agreements, covenants,
representations and warranties of each Credit Party in the Waiver Agreement, as
amended by the First Amendment and as amended herein, shall survive the Waiver
Maturity Date.

         9. Counterparts. This Second Amendment may be executed in separate
counterparts, each of which when executed and delivered is an original but all
of which taken together constitute one and the same instrument.

                            [Signature pages follow]

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<PAGE>   9
         IN WITNESS WHEREOF, the parties hereto have caused this Second
Amendment to be duly executed as of the date and year first above written.

                                    BORROWER:

                                    RURAL/METRO CORPORATION, a Delaware
                                         corporation

                                    By:/s/ John S. Banas III
                                       ---------------------
                                    Name:  John S. Banas III
                                        ---------------------
                                    Title: Senior Vice President and
                                           -------------------------
                                           General Counsel

                            [Signature pages follow]

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                                    LENDERS:

                                    FIRST UNION NATIONAL BANK,
                                    as Agent and Lender

                                    By:/s/Ron R. Ferguson
                                         ------------------------
                                    Name: Ron R. Ferguson
                                         ------------------------
                                    Title:Senior Vice President
                                         ------------------------

                            [Signature pages follow]

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                                      FLEET BANK, N.A., as Lender

                                      By:/s/Vincent Pitts
                                         ------------------------
                                      Name: Vincent Pitts
                                          ------------------------
                                      Title:Vice President
                                           ------------------------

                            [Signature pages follow]

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                                      BANK ONE, NA, as Lender

                                      By:  /s/ Bonnie D. Wilson
                                         ------------------------
                                      Name:    Bonnie D. Wilson
                                         ------------------------
                                      Title:   1st Vice President
                                         ------------------------

                            [Signature pages follow]

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                                       ABN AMRO BANK NV, as Lender

                                       By:  /s/ S.L. Wimpenny
                                            --------------------------
                                       Name:    S.L. Wimpenny
                                            --------------------------
                                       Title:   GSVP
                                            --------------------------

                                       By:  /s/William J. Teresky, Jr.
                                            --------------------------
                                       Name:   William J. Teresky, Jr.
                                            --------------------------
                                       Title:  Vice President
                                            --------------------------

                            [Signature pages follow]

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                                     WELLS FARGO BANK, as Lender

                                     By:/s/Art Brokx
                                        -------------------
                                     Name: Art Brokx
                                        -------------------
                                     Title:Vice President
                                        -------------------

                            [Signature pages follow]

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                                       GENERAL ELECTRIC CAPITAL
                                           CORPORATION, as Lender

                                       By:  Thomas E. Johnstone
                                       ---------------------------------
                                       Name:Thomas E. Johnstone
                                       ---------------------------------
                                       Title:Duly Authorized Signatory
                                       ---------------------------------

                            [Signature pages follow]

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                                         BANK OF AMERICA NATIONAL TRUST AND
                                               SAVINGS ASSOCIATION, as Lender

                                         By:    Kurt A. Huisman
                                              -----------------
                                         Name:  Kurt A. Huisman
                                              -----------------
                                         Title: Vice President
                                              -----------------

                            [Signature pages follow]

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                                          BNP PARIBAS, as Lender

                                          By:    Don L. Unruh
                                                 --------------------
                                          Name:  Don L. Unruh
                                                 --------------------
                                          Title: Vice President
                                                 --------------------

                                          By:    Albert A. Young, Jr.
                                                 --------------------
                                          Name:  Albert A. Young, Jr.
                                                 --------------------
                                          Title: Director
                                                 --------------------

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<PAGE>   18
By execution hereof, the undersigned Subsidiary Guarantors hereby acknowledge
and agree to the terms hereof; hereby reaffirm their respective obligations
under the Subsidiary Guaranty and the Intercompany Subordination Agreement;
acknowledge that the Guaranty Obligations with respect to the Subsidiary
Guaranty include the obligations under this Second Amendment; acknowledge that
the Senior Debt as defined in and with respect to the Intercompany Subordination
Agreement include the obligations under this Second Amendment; and hereby agree
that the terms of the Subsidiary Guaranty shall remain in full force and effect
notwithstanding any event or condition which has occurred.

ACCEPTED AND AGREED TO AS OF JULY 14, 2000.
AID AMBULANCE AT VIGO COUNTY, INC., an Indiana corporation, AMBULANCE TRANSPORT
SYSTEMS, INC., a New Jersey corporation, AMERICAN LIMOUSINE SERVICE, INC., an
Ohio corporation, ARROW AMBULANCE, INC., an Idaho corporation, BEACON
TRANSPORTATION, INC., a New York corporation, COASTAL EMS, INC., a Georgia
corporation, CORNING AMBULANCE SERVICE INC., a New York corporation, DONLOCK,
LTD., a Pennsylvania corporation, E.M.S. VENTURES, INC., a Georgia corporation,
EMS VENTURES OF SOUTH CAROLINA, INC., a South Carolina corporation, EASTERN
AMBULANCE SERVICE, INC., a Nebraska corporation, EASTERN PARAMEDICS, INC., a
Delaware corporation, GOLD CROSS AMBULANCE SERVICES, INC., a Delaware
corporation, GOLD CROSS AMBULANCE SERVICE OF PA., INC., an Ohio corporation,
KEEFE & KEEFE, INC., a New York corporation, KEEFE & KEEFE AMBULETTE, LTD., a
New York corporation, LASALLE AMBULANCE INC., a New York corporation, MEDI-CAB
OF GEORGIA, INC., a Delaware corporation, MEDICAL EMERGENCY DEVICES AND SERVICES
(MEDS), INC., an Arizona corporation, MEDICAL TRANSPORTATION SERVICES, INC., a
South Dakota corporation, MEDSTAR EMERGENCY MEDICAL SERVICES, INC., a Delaware
corporation, MERCURY AMBULANCE SERVICE, INC., a Kentucky corporation, METRO CARE
CORP., an Ohio corporation, MO-RO-KO, INC., an Arizona corporation, MULTI CAB
INC., a New Jersey corporation, MULTI-CARE INTERNATIONAL, INC., a New Jersey
corporation, MULTI-CARE MEDICAL CAR SERVICE, INC., a New Jersey corporation,
MULTI-HEALTH CORP., a Florida corporation, MYERS AMBULANCE SERVICE, INC., an
Indiana corporation, NATIONAL AMBULANCE & OXYGEN SERVICE, INC., a New York
corporation, NORTH MISS. AMBULANCE SERVICE, INC., a Mississippi corporation,
PROFESSIONAL MEDICAL SERVICES, INC., an Arkansas corporation, RISC AMERICA
ALABAMA FIRE SAFETY SERVICES, INC., a Delaware corporation, RMFD OF NEW JERSEY,
INC., a Delaware corporation, R/M MANAGEMENT CO., INC., an Arizona corporation,
R/M OF MISSISSIPPI, INC., a Delaware corporation, R/M OF TENNESSEE G.P., INC., a
Delaware corporation, R/M OF TENNESSEE L.P., INC., a Delaware corporation, R/M
OF TEXAS G.P., INC., a Delaware corporation, R/M PARTNERS, INC., a Delaware
corporation, RMC CORPORATE CENTER, L.L.C., an Arizona limited liability company,
By: RURAL/METRO CORPORATION, an Arizona corporation, Its Member, RURAL/METRO
ARGENTINA, L.L.C., an Arizona limited liability company, By: RURAL/METRO
INTERNATIONAL, INC., a Delaware corporation, Its Member, RURAL/METRO BRASIL,
L.L.C., an Arizona limited liability company, By: RURAL/METRO INTERNATIONAL,
INC., a Delaware corporation, Its Member, RURAL/METRO CANADIAN HOLDINGS, INC., a
Delaware corporation, RURAL/METRO COMMUNICATIONS SERVICES, INC., a Delaware
corporation, RURAL/METRO CORPORATION, an Arizona corporation, RURAL/METRO
CORPORATION OF FLORIDA, a Florida corporation, RURAL/METRO CORPORATION OF
TENNESSEE, a Tennessee corporation, RURAL/METRO FIRE DEPT., INC., an Arizona
corporation, RURAL/METRO HOSPITAL SERVICES, INC., a Delaware corporation

                                                By:/s/ John S. Banas III
                                                       -----------------
                                                Name:  John S. Banas III
                                                       -----------------
                                                Title: Secretary
                                                       -----------------

                                      -18-
<PAGE>   19
RURAL/METRO INTERNATIONAL, INC., a Delaware corporation, RURAL/METRO LOGISTICS,
INC., a Delaware corporation, RURAL/METRO MID-ATLANTIC, INC., a Delaware
corporation, RURAL/METRO MID-SOUTH, L.P., a Delaware limited partnership, By:
R/M OF TENNESSEE G.P., INC., a Delaware corporation, Its General Partner,
RURAL/METRO OF ALABAMA, INC., a Delaware corporation, RURAL/METRO OF ARGENTINA,
INC., a Delaware corporation, RURAL/METRO OF ARKANSAS, INC., a Delaware
corporation, RURAL/METRO OF ARLINGTON, INC., a Delaware corporation, RURAL/METRO
OF BRASIL, INC., a Delaware corporation, RURAL/METRO OF CALIFORNIA, INC., a
Delaware corporation, RURAL/METRO OF CENTRAL ALABAMA, INC., a Delaware
corporation, RURAL/METRO OF CENTRAL COLORADO, INC., a Delaware corporation,
RURAL/METRO OF CENTRAL OHIO, INC., a Delaware corporation, RURAL/METRO OF
COLORADO, a Delaware corporation, RURAL/METRO OF GEORGIA, INC., a Delaware
corporation, RURAL/METRO OF GREATER SEATTLE, INC., a Washington corporation,
RURAL/METRO OF INDIANA, INC., a Delaware corporation, RURAL/METRO OF INDIANA,
L.P., a Delaware limited partnership, By: THE AID AMBULANCE COMPANY, INC., a
Delaware corporation, Its General Partner, RURAL/METRO OF INDIANA II, L.P., a
Delaware limited partnership, By: THE AID AMBULANCE COMPANY, INC., a Delaware
corporation, Its General Partner, RURAL/METRO OF KENTUCKY, INC., a Delaware
corporation, RURAL/METRO OF MISSISSIPPI, INC., a Delaware corporation,
RURAL/METRO OF NEBRASKA, INC., a Delaware corporation, RURAL/METRO OF NEVADA,
INC., a Delaware corporation, RURAL/METRO OF NEW YORK, INC., a Delaware
corporation, RURAL/METRO OF NORTH FLORIDA, INC., a Florida corporation,
RURAL/METRO OF NORTH TEXAS, L.P., By: R/M OF TEXAS G.P., INC., a Delaware
corporation, Its General Partner, RURAL/METRO OF NORTHERN OHIO, INC., a Delaware
corporation, RURAL/METRO OF OHIO, INC., a Delaware corporation, RURAL/METRO OF
OREGON, INC., a Delaware corporation, RURAL/METRO OF ROCHESTER, INC., a New York
corporation, RURAL/METRO OF SAN DIEGO, INC., a California corporation,
RURAL/METRO OF SOUTH CAROLINA, INC., a Delaware corporation, RURAL/METRO OF
SOUTH DAKOTA, INC., a Delaware corporation, RURAL/METRO OF SOUTHERN OHIO, INC.,
an Ohio corporation, RURAL/METRO OF TENNESSEE, L.P., a Delaware limited
partnership, By: R/M OF TENNESSEE G.P., INC., a Delaware corporation, Its
General Partner, RURAL/METRO OF TEXAS, INC., a Delaware corporation, RURAL/METRO
OF TEXAS, L.P., a Delaware limited partnership, By: R/M OF TEXAS G.P., INC., a
Delaware corporation, Its General Partner, RURAL/METRO PROTECTION SERVICES,
INC., an Arizona corporation, RURAL/METRO TEXAS HOLDINGS, INC., a Delaware
corporation, SW GENERAL, INC., an Arizona corporation, SIOUX FALLS AMBULANCE,
INC., a South Dakota corporation, SOUTH GEORGIA EMERGENCY MEDICAL SERVICES,
INC., a Georgia corporation, SOUTHWEST AMBULANCE AND RESCUE OF ARIZONA, INC., an
Arizona corporation, SOUTHWEST AMBULANCE OF CASA GRANDE, INC., an Arizona
corporation, SOUTHWEST AMBULANCE OF TUCSON, INC., an Arizona corporation,
SOUTHWEST GENERAL SERVICES, INC., an Arizona corporation, THE AID AMBULANCE
COMPANY, INC., a Delaware corporation, THE AID COMPANY, INC., an Indiana
corporation, TOWNS AMBULANCE SERVICE, INC., a New York corporation, VALLEY FIRE
SERVICE, INC., a Delaware corporation, W & W LEASING COMPANY, INC., an Arizona
corporation

                                                 By:  /s/ John S. Banas III
                                                       --------------------
                                                 Name:  John S. Banas III
                                                       --------------------
                                                 Title:  Secretary
                                                       --------------------

                                      -19-
<PAGE>   20

                                    EXHIBIT A
                                    ---------

                          FORM OF CASH FLOW PROJECTION
                          ----------------------------

                                      -20-Exhibit 4(a)

<PAGE>

                              MANAGEMENT AGREEMENT

      AGREEMENT made this 24th day of March, 2000, by and between NOMURA PACIFIC
BASIN FUND, INC., a Maryland corporation (hereinafter referred to as the
"Corporation"), and NOMURA ASSET MANAGEMENT U.S.A. INC., a New York corporation
(hereinafter referred to as the "Manager").

                                   WITNESSETH:

      WHEREAS, the Corporation is engaged in business as an open-end, management
investment company registered under the Investment Company Act of 1940, as
amended (hereinafter referred to as the "Investment Company Act"); and

      WHEREAS, the Manager is engaged in the business of rendering management
and investment advisory services and is registered as an investment adviser
under the Investment Advisers Act of 1940, as amended; and

      WHEREAS, the Corporation desires to retain the Manager to render
investment advisory and management services to the Corporation in the manner and
on the terms hereinafter set forth; and

      WHEREAS, the Manager is willing to provide management and investment
advisory services to the Corporation on the terms and conditions hereinafter set
forth;

      NOW, THEREFORE, in consideration of the mutual covenants and agreements of
the parties hereto as herein set forth, the parties covenant and agree as
follows:

                                    ARTICLE I
                              DUTIES OF THE MANAGER

      The Corporation hereby retains the Manager to act as the manager for the
Corporation or, if the Corporation becomes a series investment company, for each
of the portfolios of the Corporation that executes a "Management Fee Exhibit" to
this Agreement (each a "Fund", which term refers to the Corporation if it does
not become a series investment company), and to furnish each Fund with the
management and investment advisory services described below, subject to the
policies of, review by and overall control of the Board of Directors of the
Corporation, for the period and on the terms and conditions set forth in this
Agreement. The Manager hereby accepts such employment and agrees during such
period, at its own expense, to render, to arrange for the rendering of, such
services and to assume the obligations herein set forth for the compensation
provided for herein.

      (a) Management and Administrative Services. The Manager shall perform, or
supervise the performance of, the management and administrative services
necessary for the operation of each Fund, including administering shareholder
accounts and handling shareholder relations. The Manager shall provide each Fund
with office space, equipment and facilities and such other services as the
Manager, subject to review by the Board of Directors of the

<PAGE>

Corporation, shall from time to time determine to be necessary or useful to
perform its obligations under this Agreement. The Manager shall also, on behalf
of each Fund, conduct relations with custodians, depositories, transfer agents,
dividend disbursing agents, other shareholder servicing agents, accountants,
attorneys, underwriters, brokers and dealers, corporate fiduciaries, insurers,
banks and such other persons in any such other capacity deemed to be necessary
or desirable. The Manager shall monitor each Fund's compliance with investment
policies and restrictions as set forth in the currently effective prospectus and
statement of additional information relating to the shares of such Fund under
the Securities Act of 1933, as amended (the "Prospectus" and "Statement of
Additional Information," respectively). The Manager shall make reports to the
Board of Directors of the Corporation of the performance of obligations
hereunder with respect to each Fund and furnish advice and recommendations with
respect to such other aspects of the business and affairs of the Funds as it
shall determine to be desirable. The Manager, and its affiliates, shall for all
purposes herein be deemed to be an independent contractor and shall, unless
otherwise expressly provided or authorized, have no authority to act for or
represent the Corporation in any way or otherwise be deemed an agent of the
Corporation or any Fund.

      (b) Investment Advisory Services. The Manager shall provide each Fund with
such investment research, advice and supervision as the latter may from time to
time consider necessary for the proper supervision of the assets of such Fund.
The Manager shall act as investment adviser to each Fund and as such shall
furnish continuously an investment program for such Fund and shall determine
from time to time which securities shall be purchased, sold or exchanged and
what portion of the assets of such Fund shall be held in the various securities
in which such Fund invests, options, futures, options on futures or in cash,
subject always to the restrictions of the Articles of Incorporation and By-Laws
of the Corporation, as amended from time to time, the provisions of the
Investment Company Act and the statements relating to the respective Fund's
investment objective, investment policies and investment restrictions as the
same are set forth in such Fund's Prospectus and Statement of Additional
Information. The Manager shall make decisions for each Fund as to foreign
currency matters and make determinations as to foreign exchange contracts. The
Manager shall make recommendations as to the manner in which voting rights,
rights to consent to corporate action and any other rights pertaining to each
Fund's portfolio securities shall be exercised. Should the Board of Directors of
the Corporation at any time, however, make any definite determination as to
investment policy and notify the Manager thereof in writing, the Manager shall
be bound by such determination for the period, if any, specified in such notice
or until similarly notified that such determination has been revoked. The
Manager shall take, on behalf of the applicable Fund, all actions which it deems
necessary to implement the investment policies determined as provided above, and
in particular to place all orders for the purchase or sale of portfolio
securities for such Fund's account with brokers or dealers selected by it, and
to that end, the Manager is authorized as the agent of such Fund to give
instructions to the Custodian of such Fund as to deliveries of securities and
payments of cash for the account of such Fund. In connection with the selection
of such brokers or dealers and the placing of such orders, the Manager is
directed at all times to seek to obtain executions and price within the policy
guidelines determined by the Board of Directors of the Corporation and set forth
in the applicable Fund's Prospectus and Statement of Additional Information.
Subject to this requirement and the provisions of the Investment Company Act,
the Securities Exchange Act of 1934, as amended, and other applicable provisions

<PAGE>

of law, the Manager may select brokers or dealers with which it, or the
Corporation or any Fund, is affiliated.

                                   ARTICLE II
                       ALLOCATION OF CHARGES AND EXPENSES

      The Manager. The Manager assumes and shall pay for maintaining the staff
and personnel necessary to perform its obligations under this Agreement and
shall, at its own expense, provide the office space, equipment and facilities
which it is obligated to provide under Article I hereof, and shall pay all
compensation of officers of the Corporation and all directors of the Corporation
who are "affiliated persons" (as defined in the Investment Company Act) of the
Manager.

      The Corporation and the Funds. Each Fund assumes and shall pay or cause to
be paid all expenses attributable to or incurred by such Fund (except for the
expenses incurred by the Distributor), as well as its allocable share of the
Corporation's expenses, including, without limitation: taxes, expenses for legal
and auditing services, costs of printing proxies, stock certificates,
shareholder reports, prospectuses and statements of additional information,
charges of the Custodian, any sub-Custodian and Transfer and Dividend Disbursing
Agent, expenses of redemption of such Fund's shares, Securities and Exchange
Commission fees, expenses of registering such Fund's shares under federal, state
and foreign laws, fees and actual out-of-pocket expenses of directors who are
not affiliated persons of the Manager, accounting and pricing costs (including
the daily calculation of the net asset value), insurance, interest, brokerage
costs, litigation and other extraordinary or non-recurring expenses, and other
like expenses properly payable by such Fund. The Distributor pays certain of the
expenses of each Fund incurred in connection with the continuous offering of
such Fund's shares.

                                   ARTICLE III
                           COMPENSATION OF THE MANAGER

      For the services rendered, the equipment and facilities furnished and
expenses assumed by the Manager, each Fund shall pay to the Manager the fees set
forth in such Fund's Management Fee Exhibit hereto. If this Agreement becomes
effective subsequent to the first day of a month or shall terminate before the
last day of a month, compensation for that part of the month for which this
Agreement is in effect shall be prorated in a manner consistent with the
calculation of the fee as set forth in the applicable Fund's Management Fee
Exhibit. During any period when the determination of net asset value is
suspended by the Board of Directors of the Corporation, the net asset value of a
share of any Fund as of the last business day prior to such suspension shall for
this purpose be deemed to be the net asset value at the close of each succeeding
business day until it is again determined.

                                   ARTICLE IV
                         INVESTMENT ADVISORY AGREEMENTS

      The Manager may enter into Investment Advisory Agreements with Nomura
Asset Management Co., Ltd. and/or Nomura Asset Management Singapore Ltd.
(together, the "Investment Advisers") in the forms attached hereto as Exhibits A
and B, respectively, in which

<PAGE>

the Manager may contract for advisory services and pay the Investment Advisers
compensation for their services out of the compensation received hereunder
pursuant to Article III. Such Investment Advisory Agreements will be coterminous
with this Management Agreement.

                                    ARTICLE V
                     LIMITATION OF LIABILITY OF THE MANAGER

      The Manager shall not be liable for any error of judgment or mistake of
law or for any loss arising out of any investment or for any act or omission in
the execution and management of the Corporation or any Fund, except for willful
misfeasance, bad faith or gross negligence in the performance of its duties, or
by reason of reckless disregard of its obligations and duties hereunder. As used
in this Article V, the term "Manager" shall include any affiliates of the
Manager performing services for the Corporation or any Fund contemplated hereby
and directors, officers and employees of the Manager as well as that corporation
itself.

                                   ARTICLE VI
                            ACTIVITIES OF THE MANAGER

      The services of the Manager to the Corporation are not to be deemed to be
exclusive, the Manager and any person controlled by or under common control with
the Manager (for purposes of this Article VI referred to as "affiliates") being
free to render services to others. It is understood that directors, officers,
employees and shareholders of the Corporation are or may become interested in
the Manager and its affiliates, as directors, officers, employees, partners, and
shareholders or otherwise and that directors, officers, employees, partners, and
shareholders of the Manager, and its affiliates are or may become similarly
interested in the Corporation, and that the Manager is or may become interested
in the Corporation as shareholder or otherwise.

                                   ARTICLE VII
                   DURATION AND TERMINATION OF THIS AGREEMENT

      This Agreement shall become effective and binding on the parties hereto
upon execution of the attached exhibits. This Agreement shall remain in force
with respect to each Fund named in a Management Fee Exhibit attached hereto,
until August 20, 2000.

      This Agreement may be terminated at any time, without the payment of any
penalty, by the Board of Directors of the Corporation or by vote of a majority
of the outstanding voting securities of the Corporation, or by the Manager, on
sixty days' written notice to the other party. This Agreement shall
automatically terminate in the event of its assignment.

<PAGE>

                                  ARTICLE VIII
                           AMENDMENTS OF THE AGREEMENT

      This Agreement may be amended by the parties only if such amendment is
specifically approved by (i) a majority of those directors who are not parties
to this Agreement or interested persons of any such party cast in person at a
meeting called for the purpose of voting on such approval; (ii) the vote of a
majority of outstanding voting securities of the Corporation; and (iii) with
respect to amendments affecting an individual Fund, by the vote of majority of
outstanding voting securities of such Fund.

                                   ARTICLE IX
                          DEFINITIONS OF CERTAIN TERMS

      The terms "vote of a majority of outstanding voting securities,"
"assignment," "affiliated person" and "interested person," when used in this
Agreement, shall have the respective meanings specified in the Investment
Company Act and the rules and regulations thereunder, subject, however, to such
exemptions as may be granted by the Securities and Exchange Commission under
said Act.

                                    ARTICLE X
                                  GOVERNING LAW

      This Agreement shall be construed in accordance with the laws of the State
of New York and the applicable provisions of the Investment Company Act. To the
extent that the applicable laws of the State of New York, or any of the
provisions herein, conflict with the applicable provisions of the Investment
Company Act, the latter shall control.

<PAGE>

      IN WITNESS WHEREOF, the parties hereto have executed and delivered this
Agreement as of the date first above written.

                                    NOMURA PACIFIC BASIN FUND, INC.

                                    By /s/ David G. Stoeffel
                                      ------------------------------------------
                                      David G. Stoeffel
                                      President

                                    NOMURA ASSET MANAGEMENT U.S.A. INC.

                                    By /s/ Nobuo Katayama
                                      ------------------------------------------
                                      Nobuo Katayama
                                      President

<PAGE>

                             MANAGEMENT FEE EXHIBIT
                                 WITH RESPECT TO
                             PACIFIC BASIN PORTFOLIO

      The following provisions are hereby incorporated and made part of the
Management Agreement dated May 24, 2000 (the "Management Agreement") between
Nomura Pacific Basin Fund, Inc. (the "Corporation") and Nomura Asset Management
U.S.A. Inc. (the "Manager") with respect to the Pacific Basin Portfolio series
of the Corporation (the "Fund").

      For all services rendered by the Manager hereunder, the Fund shall pay to
the Manager and the Manager agrees to accept as full compensation for all
services rendered hereunder, at the end of each calendar month a fee based upon
the average daily value of the net assets of the Fund, as determined and
computed in accordance with the description of the determination of net asset
value contained in the Fund's Prospectus and Statement of Additional
Information, at the annual rate of .75 of 1% (.75%) of the average daily net
assets of the Fund, commencing on the day following effectiveness hereof.

      In consideration of the mutual covenants set forth in the Management
Agreement, the Corporation executes and delivers this Management Fee Exhibit on
behalf of the Fund.

      IN WITNESS WHEREOF, the parties hereto have executed and delivered this
Management Fee Exhibit as of the date first above written.

                                    NOMURA PACIFIC BASIN FUND, INC.

                                    By /s/ David G. Stoeffel
                                      ------------------------------------------
                                      David G. Stoeffel
                                      President

                                    NOMURA ASSET MANAGEMENT U.S.A. INC.

                                    By /s/ Nobuo Katayama
                                      ------------------------------------------
                                      Nobuo Katayama
                                      President

<PAGE>

                                                                       Exhibit A

                          INVESTMENT ADVISORY AGREEMENT

      AGREEMENT made this 24 day of March, 2000, by and between NOMURA ASSET
MANAGEMENT U.S.A. INC., a New York corporation (hereinafter referred to as the
"Manager"), and NOMURA ASSET MANAGEMENT CO., LTD., a Japanese corporation
(hereinafter referred to as the "Investment Adviser").

                                   WITNESSETH:

      WHEREAS, the Pacific Basin Portfolio (the "Fund") of Nomura Pacific Basin
Fund, Inc. (the "Corporation") is engaged in business as a diversified open-end
investment company registered under the Investment Company Act of 1940, as
amended (hereinafter referred to as the "Investment Company Act"); and

      WHEREAS, the Manager and the Investment Adviser are engaged in business as
registered investment advisers under the Investment Advisers Act of 1940, as
amended; and

      WHEREAS, the Manager has entered into a Management Agreement with the
Corporation with respect to the Fund of even date herewith (the "Management
Agreement"); and

      WHEREAS, the Manager desires to retain the Investment Adviser to render
investment advisory services to the Manager in connection with the Fund's
operations in the manner and on the terms hereinafter set forth; and

      WHEREAS, the Investment Adviser is willing to provide investment advisory
services to the Manager in connection with the Fund's operations on the terms
and conditions hereinafter set forth;

      NOW, THEREFORE, in consideration of the mutual covenants and agreements of
the parties hereto as herein set forth, the parties covenant and agree as
follows:

                                    ARTICLE I
                        DUTIES OF THE INVESTMENT ADVISER

      Subject to the broad supervision of the Manager and the Corporation, the
Investment Adviser shall provide the Manager with advice as to allocation of the
Fund's assets among various Pacific Basin markets in which the Fund may invest.
The Investment Adviser will also provide economic research and securities
analysis relating to issuers of securities domiciled or based in Japan and other
Pacific Basin jurisdictions, other than Singapore, as the Manager may request.
The Investment Adviser shall continuously review the Fund's holdings of such
securities and shall make recommendations as to which such securities shall be
purchased, sold or exchanged, and what portion of the assets of the Fund shall
be held in the various securities in which the Fund invests, subject always to
the restrictions of the Articles of Incorporation and By-Laws of the
Corporation, as amended from time to time, the provisions of the Investment
Company Act and the statements relating to the Fund's investment objective,
investment policies and investment restrictions as the same are set forth in the
Fund's currently effective prospectus

<PAGE>

and statement of additional information relating to the shares of the Fund under
the Securities Act of 1933, as amended (the "Prospectus" and "Statement of
Additional Information", respectively). The Investment Adviser shall make
recommendations as to foreign currency matters and the advisability of entering
into foreign exchange contracts. The Investment Adviser shall also make
recommendations as to the manner in which voting rights, rights to consent to
corporate action and any other rights pertaining to the Fund's securities shall
be exercised.

                                   ARTICLE II
                       ALLOCATION OF CHARGES AND EXPENSES

      The Investment Adviser shall furnish, at its own expense, all
administrative services, office space, equipment and facilities, investment
advisory, statistical and research services, and executive, supervisory and
clerical personnel necessary to carry out its obligations under this Agreement.

                                   ARTICLE III
                     COMPENSATION OF THE INVESTMENT ADVISER

      For the services to be rendered as provided herein, the Manager shall pay
to the Investment Adviser at the end of each calendar month a fee based upon the
average daily value of the net assets of the Fund, as determined and computed in
accordance with the description of the determination of net asset value
contained in the Prospectus and Statement of Additional Information, at the
annual rate of .26125 of 1% (.26125%) of the average daily net assets of the
Fund, less the Investment Adviser's pro rata portion of amounts paid by the
Manager in connection with distribution or shareholder servicing for the Fund,
commencing on the day following effectiveness hereof. For this purpose, the
Investment Adviser's pro rata portion of the amount paid by the Manager in
connection with distribution or shareholder servicing shall be determined based
on the relationship of the fee payable to the Investment Adviser by the Manager
under this Article III to the management fee payable by the Fund to the Manager
under the Management Agreement. During any period when the determination of net
asset value is suspended by the Board of Directors of the Corporation, the net
asset value of a share as of the last business day prior to such suspension
shall for this purpose be deemed to be the net asset value at the close of each
succeeding business day until it is again determined. If the Investment Adviser
shall serve for less than the whole of any period specified in this Article III,
the compensation to the Investment Adviser shall be prorated.

                                   ARTICLE IV
                LIMITATION OF LIABILITY OF THE INVESTMENT ADVISER

      The Investment Adviser shall not be liable for any error of judgment or
mistake of law or for any loss arising out of any investment or for any act or
omission in the execution and management of the Fund, except for willful
misfeasance, bad faith or gross negligence in the performance of its duties, or
by reason of reckless disregard of its obligations and duties hereunder. As used
in this Article IV, the term "Investment Adviser" shall include any affiliates
of the Investment Adviser performing services for the Fund contemplated hereby
and directors, officers, partners and employees of the Investment Adviser and
such affiliates.

<PAGE>

                                    ARTICLE V
                      ACTIVITIES OF THE INVESTMENT ADVISER

      The services of the Investment Adviser to the Fund are not to be deemed to
be exclusive, the Investment Adviser and any person controlled by or under
common control with the Investment Adviser (for purpose of this Article V
referred to as "affiliates") being free to render services to others. It is
understood that directors, officers, employees and shareholders of the Manager
are or may become interested in the Investment Adviser and its affiliates, as
directors, officers, employees, partners and shareholders or otherwise and that
directors, officers, employees, partners and shareholders of the Investment
Adviser and its affiliates are or may become similarly interested in the Manager
or the Fund, and that the Investment Adviser is or may become interested in the
Manager, the Corporation or the Fund as shareholder or otherwise.

                                   ARTICLE VI
                    DURATION AND TERMINATION OF THE AGREEMENT

      This Agreement shall become effective as of the date first above written
and shall remain in force until August 20, 2000.

      This Agreement may be terminated at any time, without the payment of any
penalty, by the Manager or by vote of a majority of the outstanding voting
securities of the Fund or by the Investment Adviser, on sixty days' written
notice to the other party. This Agreement shall automatically terminate in the
event of its assignment.

                                   ARTICLE VII
                          AMENDMENTS OF THIS AGREEMENT

      This Agreement may be amended by the parties only if such amendment is
specifically approved by (i) the vote of a majority of outstanding voting
securities of the Fund, and (ii) a majority of those directors who are not
parties to this Agreement or interested persons of any such party cast in person
at a meeting called for the purpose of voting on such approval.

                                  ARTICLE VIII
                          DEFINITIONS OF CERTAIN TERMS

      The terms "vote of a majority of the outstanding voting securities,"
"assignment," "affiliated person" and "interested person," when used in this
Agreement, shall have the respective meanings specified in the Investment
Company Act of 1940 and the Rules and Regulations thereunder, subject, however,
to such exemptions as may be granted by the Securities and Exchange Commission
under said Act.

<PAGE>

                                   ARTICLE IX
                                  GOVERNING LAW

      This Agreement shall be construed in accordance with laws of the State of
New York and the applicable provisions of the Investment Company Act. To the
extent that the applicable laws of the State of New York, or any of the
provisions herein conflict with the applicable provisions of the Investment
Company Act, the latter shall control.

<PAGE>

      IN WITNESS WHEREOF, the parties hereto have executed and delivered this
Agreement as of the date first above written.

                                    NOMURA ASSET MANAGEMENT U.S.A. INC.

                                    By /s/ Nobuo Katayama
                                      ------------------------------------------
                                      Nobuo Katayama
                                      President

                                    NOMURA ASSET MANAGEMENT CO., LTD.

                                    By /s/ Hisaaki Hino
                                      ------------------------------------------
                                      Hisaaki Hino
                                      Executive Managing Director

<PAGE>

                                                                       Exhibit B

                          INVESTMENT ADVISORY AGREEMENT

      AGREEMENT made this 24 day of March, 2000 by and between NOMURA ASSET
MANAGEMENT U.S.A. INC., a New York corporation (hereinafter referred to as the
"Manager), and NOMURA ASSET MANAGEMENT SINGAPORE LTD., a Singapore corporation
(hereinafter referred to as the "Investment Adviser").

                                   WITNESSETH:

      WHEREAS, the Pacific Basin Portfolio (the "Fund") of Nomura Pacific Basin
Fund, Inc. (the "Corporation") is engaged in business as a diversified,
open-end, management investment company registered under the Investment Company
Act of 1940, as amended (hereinafter referred to as the "Investment Company
Act"); and

      WHEREAS, the Manager and the Investment Adviser are engaged in business as
registered investment advisers under the Investment Advisers Act of 1940, as
amended; and

      WHEREAS, the Manager has entered into a Management Agreement with the
Corporation with respect to the Fund of even date herewith (the "Management
Agreement"); and

      WHEREAS, the Manager desires to retain the Investment Adviser to render
investment advisory services to the Manager in connection with the Fund's
operations in the manner and on the terms hereinafter set forth; and

      WHEREAS, the Investment Adviser is willing to provide investment advisory
services to the Manager in connection with the Fund's operations on the terms
and conditions hereinafter set forth;

      NOW, THEREFORE, in consideration of the mutual covenants and agreements of
the parties hereto as herein set forth, the parties covenant and agree as
follows:

                                    ARTICLE I
                        DUTIES OF THE INVESTMENT ADVISER

      Subject to the broad supervision of the Manager and the Corporation, the
Investment Adviser shall provide the Manager with such economic research and
securities analysis relating to investments in Singapore and other Pacific Basin
countries, other than Japan, as the Manager may request. The Investment Adviser
shall continuously review the Fund's holdings of securities of issuers domiciled
or based in Pacific Basin countries other than Japan, as the Manager may
request, and shall make recommendations as to which such securities shall be
purchased, sold or exchanged and what portion of the assets of the Fund shall be
held in the various securities in which the Fund invests, subject always to the
restrictions of the Articles of Incorporation and By-Laws of the Corporation, as
amended from time to time, the provisions of the Investment Company Act and the
statements relating to the Fund's investment objective, investment policies and
investment restrictions as the same are set forth in the Fund's currently
effective prospectus and statement of additional information relating to the
shares of the Fund under the Securities

<PAGE>

Act of 1933, as amended (the "Prospectus" and "Statement of Additional
Information", respectively). The Investment Adviser shall make recommendations
as to foreign currency matters and the advisability of entering into foreign
exchange contracts. The Investment Adviser shall also make recommendations as to
the manner in which voting rights, rights to consent to corporate action and any
other rights pertaining to the Fund's investments in Pacific Basin countries
other than Japan shall be exercised.

                                   ARTICLE II
                       ALLOCATION OF CHARGES AND EXPENSES

      The Investment Adviser shall furnish, at its own expense, all
administrative services, office space, equipment and facilities, investment
advisory, statistical and research services, and executive, supervisory and
clerical personnel necessary to carry out its obligations under this Agreement.

                                   ARTICLE III
                     COMPENSATION OF THE INVESTMENT ADVISER

      For the services to be rendered as provided herein, the Manager shall pay
to the Investment Adviser at the end of each calendar month a fee based upon the
average daily value of the net assets of the Fund, as determined and computed in
accordance with the description of the determination of net asset value
contained in the Prospectus and Statement of Additional Information, at the
annual rate of .0275 of 1% (.0275%) of the average daily net assets of the Fund,
less the Investment Adviser's pro rata portion of amounts paid by the Manager in
connection with distribution or shareholder servicing for the Fund, commencing
on the day following effectiveness hereof. For this purpose, the Investment
Adviser's pro rata portion of the amount paid by the Manager in connection with
distribution or shareholder servicing shall be determined based on the
relationship of the fee payable to the Investment Adviser by the Manager under
this Article III to the management fee payable by the Fund to the Manager under
the Management Agreement. During any period when the determination of net asset
value is suspended by the Board of Directors of the Corporation, the net asset
value of a share as of the last business day prior to such suspension shall for
this purpose be deemed to be the net asset value at the close of each succeeding
business day until it is again determined. If the Investment Adviser shall serve
for less than the whole of any period specified in this Article III, the
compensation to the Investment Adviser shall be prorated.

                                   ARTICLE IV
                LIMITATION OF LIABILITY OF THE INVESTMENT ADVISER

      The Investment Adviser shall not be liable for any error of judgement or
mistake of law or for any loss arising out of any investment or for any act or
omission in the execution and management of the Fund, except for willful
misfeasance, bad faith or gross negligence in the performance of its duties, or
by reason of reckless disregard of its obligations and duties hereunder. As used
in this Article IV, the term "Investment Adviser" shall include any affiliates
of the Investment Adviser performing services for the Fund contemplated hereby
and directors, officers, partners and employees of the Investment Adviser and
such affiliates.

<PAGE>

                                    ARTICLE V
                      ACTIVITIES OF THE INVESTMENT ADVISER

      The services of the Investment Adviser to the Fund are not to be deemed to
be exclusive, the Investment Adviser and any person controlled by or under
common control with the Investment Adviser (for purpose of this Article V
referred to as "affiliates") being free to render services to others. It is
understood that directors, officers, employees and shareholders of the Manager
are or may become interested in the Investment Adviser and its affiliates, as
directors, officers, employees, partners and shareholders or otherwise and that
directors, officers, employees, partners and shareholders of the Investment
Adviser and its affiliates are or may become similarly interested in the Manager
or the Fund, and that the Investment Adviser is or may become interested in the
Manager, the Corporation or the Fund as shareholder or otherwise.

                                   ARTICLE VI
                   DURATION AND TERMINATION OF THIS AGREEMENT

      This Agreement shall become effective as of the date first above written
and shall remain in force until August 20, 2000.

      This Agreement may be terminated at any time, without the payment of any
penalty, by the Manager or by vote of a majority of the outstanding voting
securities of the Fund or by the Investment Adviser, on sixty days' written
notice to the other party. This Agreement shall automatically terminate in the
event of its assignment.

                                   ARTICLE VII
                          AMENDMENTS OF THIS AGREEMENT

      This Agreement may be amended by the parties only if such amendment is
specifically approved by (i) the vote of a majority of outstanding voting
securities of the Fund, and (ii) a majority of those directors who are not
parties to this Agreement or interested persons of any such party cast in person
at a meeting called for the purpose of voting on such approval.

                                  ARTICLE VIII
                          DEFINITIONS OF CERTAIN TERMS

      The terms "vote of a majority of the outstanding voting securities,"
"assignment," "affiliated person" and "interested person," when used in this
Agreement, shall have the respective meanings specified in the Investment
Company Act of 1940 and the Rules and Regulations thereunder, subject, however,
to such exemptions as may be granted by the Securities and Exchange Commission
under said Act.

<PAGE>

                                   ARTICLE IX
                                  GOVERNING LAW

      This Agreement shall be construed in accordance with laws of the State of
New York and the applicable provisions of the Investment Company Act. To the
extent that the applicable laws of the State of New York or any of the
provisions herein conflict with the applicable provisions of the Investment
Company Act, the latter shall control.

<PAGE>

      IN WITNESS WHEREOF, the parties hereto have executed and delivered this
Agreement as of the date first above written.

                                    NOMURA ASSET MANAGEMENT U.S.A. INC.

                                    By /s/ Nobuo Katayama
                                      ------------------------------------------
                                      Nobuo Katayama
                                      President

                                    NOMURA ASSET MANAGEMENT SINGAPORE, LTD.

                                    By /s/ Hirokazu Maki
                                      ------------------------------------------
                                      Hirokazu Maki
                                      Director

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