Document:

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                                                                   EXHIBIT 10.13

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                             CONTRIBUTION AGREEMENT

                                 BY AND BETWEEN

                                  ____________

                                       AND

                              BIOMED PROPERTY, L.P.
                         A MARYLAND LIMITED PARTNERSHIP

                             DATED AS OF MAY 4, 2004

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                                TABLE OF CONTENTS

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                                                                                                                PAGE
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RECITALS......................................................................................................    1

ARTICLE 1. CONTRIBUTION OF PARTICIPATING ENTITY INTERESTS OR PROPERTY IN EXCHANGE FOR OP UNITS................    2
   Section 1.1    Contribution Transaction....................................................................    2
   Section 1.2    Consideration for Participating Entity Interests or Properties..............................    3
   Section 1.3    Adjusted Consideration......................................................................    4
   Section 1.4    Allocation of Total Contributor Consideration...............................................    4
   Section 1.5    Authorization...............................................................................    4
   Section 1.6    Prorations..................................................................................    4
   Section 1.7    Tax Treatment as Contribution...............................................................    5
   Section 1.8    Final Year Allocations......................................................................    5
   Section 1.9    Tax Indemnity...............................................................................    5

ARTICLE 2. CLOSING............................................................................................    8
   Section 2.1    Conditions Precedent........................................................................    8
   Section 2.2    Date, Time and Place of Closing.............................................................    9
   Section 2.3    Closing Deliveries..........................................................................    9
   Section 2.4    Closing Costs..............................................................................    11
   Section 2.5    Spousal Consent.............................................................................   11

ARTICLE 3. REPRESENTATIONS AND WARRANTIES AND INDEMNITIES.....................................................   11
   Section 3.1    Representations and Warranties of the Operating Partnership.................................   11
   Section 3.2    Representations and Warranties of Contributor..............................................    12
   Section 3.3    Indemnification.............................................................................   12

ARTICLE 4. COVENANTS OF CONTRIBUTOR...........................................................................   13
   Section 4.1    Negative Covenants..........................................................................   13
   Section 4.2    Affirmative Covenants.......................................................................   14

ARTICLE 5. RELEASES AND WAIVERS...............................................................................   15
   Section 5.1    General Release of Operating Partnership....................................................   15
   Section 5.2    General Release of Contributor..............................................................   15
   Section 5.3    Waiver of Section 1542 Protections..........................................................   15
   Section 5.4    Waiver of Rights Under Participating Entity Agreements......................................   16

ARTICLE 6. POWER OF ATTORNEY..................................................................................   18
   Section 6.1    Grant of Power of Attorney..................................................................   18
   Section 6.2    Limitation on Liability.....................................................................   19

ARTICLE 7. MISCELLANEOUS......................................................................................   19
   Section 7.1    Further Assurances..........................................................................   19
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   <S>                                                                                                           <C>
   Section 7.2    Counterparts................................................................................   20
   Section 7.3    Governing Law..............................................................................    20
   Section 7.4    Amendment; Waiver...........................................................................   20
   Section 7.5    Entire Agreement............................................................................   20
   Section 7.6    Assignability...............................................................................   20
   Section 7.7    Titles......................................................................................   20
   Section 7.8    Third Party Beneficiary.....................................................................   20
   Section 7.9    Severability................................................................................   21
   Section 7.10   Equitable Remedies..........................................................................   21
   Section 7.11   Confidentiality.............................................................................   21
   Section 7.12   Time of the Essence.........................................................................   21
   Section 7.13   Reliance....................................................................................   21
   Section 7.14   Survival....................................................................................   21
   Section 7.15   Notice......................................................................................   22
   Section 7.16   Termination.................................................................................   22
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                                                                                      SECTION FIRST
EXHIBITS                                                                                REFERENCED
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<S>      <C>                                                                          <C>
   A     Contributor's Participating Entity Interests...............................     Recital D

   B     Contribution and Assumption Agreement......................................        1.1

   C     Form of Quitclaim..........................................................        1.1

   D     Estimated Initial Protected Gain Allocable to Contributor..................        1.9

   E     Power of Attorney..........................................................        2.3

   F     Spousal Consent............................................................        2.5

   G     Representations and Warranties of Contributor..............................        3.2

   H     Certification of Non-Foreign Status........................................        3.3
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                             CONTRIBUTION AGREEMENT

            THIS CONTRIBUTION AGREEMENT (including all exhibits and schedules,
this "Agreement") is made and entered into as of May 4, 2004 by and between
BioMed Property, L.P., a Maryland limited partnership (the "Operating
Partnership"), _________________, a ________________________("Contributor").

                                    RECITALS

            A.    The Operating Partnership desires to consolidate the ownership
of a portfolio of office and laboratory properties through a series of
transactions (the "Formation Transactions") whereby the
Operating Partnership will acquire such properties either through an
acquisition, directly or indirectly, of some or all of the interests in certain
limited partnerships, limited liability companies and other entities (each a
"Participating Entity" and collectively, the "Participating Entities") that
currently own directly or indirectly such properties, or through one of the
other acquisition methods described in Recital F hereto.

            B.    The Formation Transactions relate to the proposed initial
public offering (the "Public Offering") of the common stock of BioMed Property
Trust, Inc., a Maryland corporation (the "Company"), which will operate as a
self-administered and self-managed real estate investment trust ("REIT") within
the meaning of Section 856 of the Internal Revenue Code of 1986, as amended (the
"Code"), and which is the sole general partner of the Operating Partnership.

            C.    The partners and members of the Participating Entities (each,
a "Participating Party" and collectively, the "Participating Parties") will
either transfer their respective interests in the Participating Entities to the
Operating Partnership in exchange for cash or partnership units in the Operating
Partnership (the "OP Units"), or the Participating Entities will transfer the
Properties through a Direct Contribution, Merger or Division as described in
Recital F below, as determined by the Operating Partnership at its sole and
absolute discretion, in exchange for cash or OP Units.

            D.    Contributor owns interests in one or more of the Participating
Entities as set forth on Exhibit A, and the Participating Entities own directly
or indirectly the properties set forth on Exhibit A (each, a "Property" and
together, the "Properties"). As used herein, "Participating Entity Agreements"
means the partnership agreements and/or limited liability company agreements, as
applicable, under which each Participating Entity was formed (including all
amendments or restatements).

            E.    Subject to the alternative methods described in Recital F
below, Contributor desires to, and the Operating Partnership desires Contributor
to, contribute to the Operating Partnership all of Contributor's right, title
and interest, free and clear of all Liens (as defined in Exhibit G), as a
partner or member of each Participating Entity including, without limitation,
all of its voting rights and interests in the capital, profits and losses of the
Participating Entity or any property distributable therefrom, constituting all
of its interests in the Participating Entity (such right, title and interest,
the "Participating Entity Interest" and

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collectively, the "Participating Entity Interests"), in exchange for cash or OP
Units, on the terms and subject to the conditions set forth herein.

            F.    Contributor acknowledges that the Operating Partnership may
decide that, rather t han acquiring the Participating Entity Interests by direct
transfer, it is more desirable for the Operating Partnership to acquire a
particular Property by a direct contribution of such Property from the
Participating Entity that owns such Property (a "Direct Contribution"), or by a
merger of another entity or the Participating Entity with and into the Company,
the Operating Partnership or an affiliate of either of them (a "Merger"), or to
divide a Participating Entity into more than one entity to facilitate the
Formation Transactions (a "Division"), and, so long as the Operating Partnership
agrees to hold Contributor harmless for any additional adverse income tax
consequences to Contributor, or costs or liabilities incurred by Contributor, as
a result of any restructuring pursuant to this Recital F as provided in Section
5.4 hereof, Contributor gives the Operating Partnership the right, in the
Operating Partnership's sole and absolute discretion, to engage in any Direct
Contribution, Merger or Division on the terms and conditions described herein
without the need to seek any further consent or action of Contributor, and will
grant to the Operating Partnership an irrevocable power of attorney as set forth
in Article 6 hereof and irrevocable consents as set forth in Section 5.4 hereof,
subject to the terms and conditions of this Agreement.

            G.    The parties acknowledge that the Operating Partnership's
acquisition of the Properties, whether through Contributor's contribution of its
Participating Entity Interests, Direct Contribution, Merger or Division, is in
connection with and subject to the consummation of the Formation Transactions
and the Public Offering. It is understood that the Operating Partnership may
acquire interests in additional properties with the proceeds of the Public
Offering.

            NOW, THEREFORE, for and in consideration of the foregoing premises,
and the mutual undertakings set forth below, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties hereto agree as follows:

                               TERMS OF AGREEMENT

                                   ARTICLE 1.
          CONTRIBUTION OF PARTICIPATING ENTITY INTERESTS OR PROPERTY IN
                             EXCHANGE FOR OP UNITS

      Section 1.1 Contribution Transaction.

            (a) At the Closing (as defined in Section 2.2) and subject to the
terms and conditions contained in this Agreement, if the transaction is
consummated as an acquisition of all the outstanding Participating Entity
Interests, Contributor shall contribute, transfer, assign, convey and deliver to
the Operating Partnership, absolutely and unconditionally and free and clear of
all Liens, but without recourse, representation or warranty except as expressly
set forth herein (including Exhibit G), all of its Participating Entity
Interests, including, without limitation, all of Contributor's rights and
interests in the Participating Entities and all rights to indemnification,
reimbursement, payment and distributions in favor of Contributor under the

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Participating Entity Agreements or any other agreements pursuant to which
Contributor acquired such Participating Entity Interests. The contribution of
the Participating Entity Interests shall be evidenced by the execution and
delivery of a Contribution and Assumption Agreement in substantially the form of
Exhibit B for each Participating Entity Interest contributed hereunder. In
addition, Contributor shall execute, and upon the Operating Partnership's
request shall cause each of its individual constituent partners, members and/or
beneficiaries (as applicable) to execute, and have duly acknowledged an
individual quitclaim deed for each Property in substantially the form of Exhibit
C quitclaiming to the Operating Partnership any direct or indirect ownership
interest in and to the Properties.

            (b) At the Closing and subject to the terms and conditions contained
in this Agreement, if the transaction is consummated as an acquisition of the
Property by the Operating Partnership directly from the Participating Entity,
the Participating Entity shall contribute, transfer, assign, convey and deliver
to the Operating Partnership, absolutely and unconditionally and free and clear
of all Liens, but without recourse, representation or warranty except as
expressly set forth herein (including Exhibit G), the Property. The contribution
of the Property shall be evidenced by the execution and delivery of a
Contribution and Assumption Agreement for the Property contributed hereunder in
a form reasonably satisfactory to the Operating Partnership, which shall contain
a warranty of title that the Participating Entity owns the Property free and
clear of all Liens.

            (c) The parties shall take such additional actions and execute such
additional documentation as may be required by the Participating Entity
Agreements and the Agreement of Limited Partnership of the Operating Partnership
(the "OP Partnership Agreement") or as requested in the reasonable judgment of
counsel to the Operating Partnership in order to effect the transactions
contemplated hereby, including any actions or documentation necessary or
advisable in connection with a Direct Contribution, Merger or Division (without,
however, the expenditure of any additional money or the incurring of any
additional liability by Contributor not contemplated herein (including Exhibit
G) unless Contributor is advanced such money or held harmless from such
additional liability by the Operating Partnership by agreement in form and
substance reasonably acceptable to Contributor).

      Section 1.2 Consideration for Participating Entity Interests or
Properties.

      Subject to Section 1.3, the Operating Partnership shall, in exchange for
each Participating Entity Interest or Property, as applicable, transfer to
Contributor the amount of cash (the "Cash Amount") and/or the number of OP
Units, in each case as indicated on Exhibit A as Contributor's "Participating
Entity Consideration" relating to each Participating Entity Interest or Property
contributed hereunder (the aggregate of all such amounts being the "Total
Contributor Consideration"). The transfer of the OP Units to Contributor shall
be evidenced by either an amendment (each, an "Amendment") to the OP Partnership
Agreement or by certificates relating to such OP Units (each, a "Certificate"),
in either case, as determined by the Operating Partnership, in such form as
shall be reasonably acceptable to Contributor. The parties shall take such
additional actions and execute such additional documentation as may be required
by the applicable Participating Entity Agreements and the OP Partnership
Agreement in order to effect the transactions contemplated hereby.

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      Section 1.3 Adjusted Consideration.

            The Operating Partnership reserves the right not to acquire any
particular interest that constitutes part of the Participating Entity Interests,
if the Operating Partnership determines in good faith that the ownership of such
interest or the underlying Property would be inappropriate for the Operating
Partnership for any reason whatsoever, including, without limitation, that the
ownership of such interest or the underlying Property could jeopardize the
Company's status as a REIT.

            The risk of loss relating to the Participating Entity Interests and
the underlying Properties contributed hereunder prior to Closing shall be borne
by Contributor. If, prior to the Closing, any Property is destroyed or
materially damaged by fire or other casualty, then the Operating Partnership
may, at its option, determine not to acquire a particular Property, including
Contributor's interest in the Participating Entity that directly or indirectly
owns such Property, that has been destroyed or damaged. Under such
circumstances, Contributor acknowledges that the Total Contributor Consideration
will likely be correspondingly reduced. After the occurrence of any such
casualty affecting a Property, the Operating Partnership may also, at its
option, elect to (a) acquire Contributor's interest in any such Participating
Entity that directly or indirectly owns the affected Property, (b) direct
Contributor to pay or cause to be paid to the Operating Partnership any sums
collected under any policies of insurance relating to such casualty and
otherwise assign to the Operating Partnership all rights to collect such sums as
may then be uncollected and (c) adjust or settle any insurance claim.

      Section 1.4 Allocation of Total Contributor Consideration.

            The Total Contributor Consideration shall be allocated among the
Participating Entity Interests as set forth on Exhibit A. The Operating
Partnership and Contributor agree to (i) be bound by the allocation, (ii) act in
accordance with the allocation in the preparation of financial statements and
filing of all tax returns and in the course of any tax audit, tax review or tax
litigation relating thereto and (iii) take no position, and cause their
affiliates to take no position, inconsistent with the allocation for income tax
purposes.

      Section 1.5 Authorization.

            Contributor authorizes the Authorized Parties to make any and all
determinations to be made by Contributor pursuant to Section 1.3 hereof, and any
and all such determinations shall be final and binding on all parties.

      Section 1.6 Prorations.

            At the Closing, or as promptly as practicable thereafter, to the
extent such matters are not the right or responsibility of all tenants of a
given Property, all revenue and charges that are customarily prorated in
transactions of this nature, including accrued rent currently due and payable,
overpaid taxes or fees, real and personal property taxes, common area
maintenance charges and other similar periodic charges payable or receivable
with respect to such Property shall be prorated between the partners of the
Participating Entity that holds such Property prior to the Closing and the
Operating Partnership on and after the Closing, effective as of the Closing.
After providing for such prorations, if a Participating Entity has a resultant
cash surplus or a

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resultant cash deficit, then such surplus or deficiency, as the case may be,
shall be settled in cash at the Closing or as soon thereafter as is reasonably
practicable.

      Section 1.7 Tax Treatment as Contribution.

            The contribution, transfer, conveyance and assignment effectuated
pursuant to this Agreement shall be treated as a transaction in "assets-over"
form pursuant to Treasury Regulation Section 1.708-1(c)(3). To the extent any
Participating Party transfers all or any portion of a Participating Entity
Interests to the Operating Partnership in exchange for a Cash Amount, or to the
extent any portion of a Participating Party's transfer of a Participating Entity
Interest is otherwise treated as a "disguised sale" pursuant to Section 707 of
the Code or the Treasury Regulations promulgated thereunder (such Participating
Party referred to as a "Selling Party," and the portion of the Participating
Entity Interests sold referred to as a "Sold Interest"), such transfer shall be
treated as a purchase of the Sold Interest by the Operating Partnership directly
from the Selling Party in accordance with the provisions of Treasury Regulation
Section 1.708-1(c)(4) and Code Section 741. To the extent that Contributor
constitutes a Selling Party, Contributor expressly consents to treat the
transfer of the Sold Interests as a sale of an interest in the Participating
Entity for all federal tax purposes. The Operating Partnership and Contributor
agree that the transaction shall be treated for federal income tax purposes as
if the Selling Party first sold the Sold Interests in the Participating Entity
to the Operating Partnership, the Participating Entity then transferred its
assets and liabilities (except to the extent attributable to the Sold Interests)
to the Operating Partnership in exchange for OP Units, and then the
Participating Entity liquidated, distributing the OP Units to its partners or
members (other than the Selling Parties with respect to the Sold Interests) and
distributing the balance of its assets and liabilities to the Operating
Partnership in redemption of the Sold Interests acquired by the Operating
Partnership.

      Section 1.8 Final Year Allocations.

            To the extent a Participating Entity Agreement does not provide for
final year tax allocations, Contributor agrees to use the "interim closing of
the books" method as provided in Section 706 of the Code to allocate income and
loss for the year in which the Closing occurs.

      Section 1.9 Tax Indemnity.

            (a) Definitions. As used in this Section 1.9, the terms set forth
below shall have the following respective meanings:

                  (i)   "Book Gain" means any gain that would not be required
under Section 704(c) of the Code and applicable Treasury Regulations to be
specifically allocated to Contributor but rather would be allocated to all
partners in the Operating Partnership, including the REIT, in accordance with
their respective economic interests in the Operating Partnership.

                  (ii)  "Protected Gain" means the taxable gain that Contributor
would be allocated and recognize under Section 704(c) of the Code if the
Properties were sold in a fully taxable transaction. The estimates of the
initial Protected Gain allocable to Contributor with respect to each Property as
of the Closing Date are set forth in Exhibit D hereto. Anything to the

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contrary herein notwithstanding, any gain that would be allocated to Contributor
upon a sale of any Property that is a "Book Gain" shall not be considered
Protected Gain.

                  (iii) "Qualifying Debt" means (i) unsecured debt of the
Operating Partnership with respect to which the lender has recourse, without
limitation, to all assets of the Operating Partnership provided such debt is not
junior to any other unsecured debt of the Operating Partnership or (ii) debt of
the Operating Partnership secured by property with a value at least equal to
150% of the loan balance at the time of the Guarantee (as defined below) or at
the time any subsequent guarantee of such debt is incurred by another party.
Debt which satisfies requirement (i) or (ii) above will not be Qualifying Debt
if and when there is another guarantee by any person (other than the REIT) with
respect to the same indebtedness that is prior to (i.e., with less economic
risk) the Guarantee provided by Contributor pursuant to this Agreement.

                  (iv)  "Sale Restriction Period" means, with respect to
Contributor, a period of time commencing on the Closing Date and ending on the
date that is ten years following the Closing Date.

            (b) Restriction on Dispositions of Property.

                  (i)   The Operating Partnership agrees not to sell or dispose
of any Property in a transaction that would cause Contributor, during the Sale
Restriction Period, to recognize any Protected Gain, unless the Operating
Partnership makes the indemnity payment to Contributor set forth in Section
1.9(c); provided, however, that the foregoing restriction shall no longer apply
in the event that Contributor continues to hold less than 25% of the OP Units
issued to Contributor on the Closing Date. For purposes of this Section 1.9(b),
the Properties will also include any direct or indirect interest owned by the
Operating Partnership in any entity that owns an interest in any Property, if
the disposition of that interest would result in the recognition of Protected
Gain by Contributor.

                  (ii)  The prohibition on the sale or other disposition of the
Properties shall not apply if the Property is disposed of in a transaction in
which no gain is required to be recognized by Contributor (for example, an
exchange under Section 1031 of the Internal Revenue Code or a tax-free
partnership merger or contribution). However, in such case, the provisions of
Section 1.9(b)(i) shall then apply to the replacement property (or partnership
interest received in the exchange) to the extent the sale or disposition of that
asset would result in the recognition of Protected Gain.

            (c) Debt Opportunity. The Operating Partnership shall make available
to Contributor, during the Sale Restriction Period applicable to Contributor, an
opportunity to make a "bottom dollar guarantee" of Qualifying Debt in a form and
amount to be agreed upon by the parties hereto (a "Guarantee"). Contributor
shall either accept or decline such opportunity within twenty (20) business days
of receipt of written notice from the Operating Partnership of the availability
of such opportunity. After the expiration of Sale Restriction Period with
respect to Contributor, the Operating Partnership shall use its commercially
reasonable efforts to provide Guarantee opportunities to Contributor to the
extent reasonably necessary to permit Contributor to defer the recognition of
tax gain, provided however that the Operating Partnership shall in no

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event be required to incur any new or additional indebtedness for purposes of
this commercially reasonable efforts covenant. Notwithstanding the foregoing, if
at any time Contributor continues to hold less than 25% of the OP Units issued
to Contributor on the Closing Date, or Contributor declines, in whole or in
part, to make a "bottom dollar guarantee", the Operating Partnership's
obligations set forth in this Section 1.9(c) with respect to Contributor shall,
from such time forward, terminate.

            (d) Indemnity for Breaches of Section 1.9(b). In the event of a
breach of the provisions of Section 1.9(b) by the Operating Partnership during
the Sale Restriction Period applicable to Contributor, the Operating Partnership
shall pay to Contributor, in the manner set forth below, an amount equal to the
taxes incurred or to be incurred with respect to the Protected Gain attributable
to the Property, computed assuming the maximum potential effective combined
federal and state income tax rate on such character and type of gain (using the
state income tax rates for the state(s) in which such gain would be subject to
tax for Contributor), plus an amount sufficient to compensate Contributor for
all taxes payable with respect to such payment (such additional amount being the
"Gross-up Amount"). The Gross-up Amount shall be computed without regard to any
losses, credit, or other tax attributes that Contributor might have that would
reduce its actual tax liability. Anything to the contrary in this Agreement
notwithstanding, the sole and exclusive rights and remedies of Contributor for a
breach or violation of the provisions of Section 1.9(b) by the Operating
Partnership shall be a claim for damages against the Operating Partnership,
computed as set forth in this Section 1.9(d), and Contributor shall not be
entitled to pursue a claim for specific performance of the provisions of Section
1.9(b) by the Operating Partnership, or bring a claim against any person that
acquires any Property from the Operating Partnership in violation of Section
1.9(b).

            (e) Indemnity Payment Mechanics. If the Operating Partnership
completes a transaction that would result in liability under this Section 1.9,
then (i) on or before the date such transaction is completed, the Operating
Partnership shall provide notice of such transaction to Contributor and (ii) on
or before April 1st of the year in which Contributor would first be responsible
for any tax obligation associated with such transaction, the Operating
Partnership shall pay to Contributor the amounts required by this Section 1.9
and shall provide to Contributor the Operating Partnership's calculation of the
amount paid. If Contributor is obligated to make any interim or other tax
payment with respect to such a transaction prior to April 15th of the year in
which Contributor would first be responsible for any tax associated with such
transaction, then Contributor shall notify the Operating Partnership of such tax
obligation no later than thirty-five (35) days prior to the date Contributor is
required to make such payment, and the Operating Partnership shall pay to
Contributor the amounts required by this Section 1.9 and shall provide to
Contributor the Operating Partnership's calculation of the amount paid no later
than five (5) days prior to the date Contributor is required to pay such tax
obligation.

            (f) Section 704(c) Method. The Operating Partnership will use the
"traditional method" with respect to the Properties, with no "curative
allocation" of income or gain to offset any "shortfall" in depreciation that
results by reason of the use of the "traditional method," including upon sale of
any Property.

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                                   ARTICLE 2.
                                     CLOSING

      Section 2.1 Conditions Precedent.

            The effectiveness of the Company's Registration Statement on Form
S-11 (as amended from time to time, the "Registration Statement") to be filed
with the Securities and Exchange Commission after the execution of this
Agreement is a condition precedent to the obligations of all parties to this
Agreement to effect the transactions contemplated by this Agreement on the
Closing Date (as defined below). This condition may not be waived by any party
to this Agreement.

            The obligations of the Operating Partnership to effect the
transactions contemplated hereby shall be subject to the following additional
conditions:

            (a) the representations and warranties of Contributor contained in
this Agreement shall have been true and correct on the date such representations
and warranties were made, and shall be true and correct on the Closing Date as
if made at and as of such date;

            (b) each obligation of Contributor to be performed by it shall have
been duly performed by it on or before the Closing Date, and Contributor shall
not have breached any of its covenants contained herein;

            (c) concurrently with the Closing, Contributor, directly or through
the Attorney-in-Fact (as defined below), shall have executed and delivered to
the Operating Partnership the documents required to be delivered pursuant to
Section 2.3;

            (d) all necessary consents or approvals of governmental authorities
or third parties (including lenders) to the consummation of the transactions
contemplated herein and the Formation Transactions shall have been obtained;

            (e) no order, statute, rule, regulation, executive order,
injunction, stay, decree or restraining order shall have been enacted, entered,
promulgated or enforced by any court of competent jurisdiction or governmental
or regulatory authority or instrumentality that prohibits the consummation of
the transactions contemplated herein, and no litigation or governmental
proceeding seeking such an order shall be pending or threatened;

            (f) there shall not have occurred between the date hereof and the
Closing Date any material adverse change in the Participating Entity's
businesses or the Properties; and

            (g) the contribution of the Participating Entity Interests and the
Properties shall have been approved by the Participating Entities' respective
partners and members to the extent such approval is required by the applicable
Participating Entity Agreements.

            The foregoing conditions may be waived by the Operating Partnership
in its sole and absolute discretion.

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      Section 2.2 Date, Time and Place of Closing.

            The date, time and place of the transactions contemplated hereunder
shall be the day the Operating Partnership receives the proceeds from the Public
Offering from the underwriter(s), at 10:00 a.m. in the office of Latham &
Watkins LLP, 12636 High Bluff Drive, Suite 300, San Diego, California (the
"Closing" or "Closing Date"). The transfers described in Article 1 of this
Agreement, and all closing deliveries, and the consummation of the Public
Offering, shall be deemed concurrent for all purposes.

      Section 2.3 Closing Deliveries.

            At the Closing, each party shall make, execute, acknowledge and
deliver, or cause to be made, executed, acknowledged and delivered through the
Attorney-in-Fact the legal documents and other items (collectively, the "Closing
Documents") necessary to carry out the intention of this Agreement, which
Closing Documents and other items shall include, without limitation, the
following:

            (a) a Contribution and Assumption Agreement substantially in the
form attached hereto as Exhibit B for each Participating Entity Interest or such
form as reasonably requested by the Operating Partnership for each Property, as
applicable;

            (b) an individual quitclaim deed substantially in the form attached
hereto as Exhibit C for each Property fully executed and duly acknowledged from
each of the individual constituent partners and/or members of the Participating
Entities, as required by the Operating Partnership;

            (c) Amendment(s) or Certificate(s) evidencing the transfer of OP
Units to Contributor or the payment of the Cash Amount, as applicable;

            (d) a Power of Attorney fully executed and duly acknowledged from
Contributor substantially in the form attached hereto as Exhibit E;

            (e) all title insurance policies, leases, lease files, contracts,
stock certificates, original promissory notes and other indicia of ownership
with respect to each Participating Entity that are in Contributor's possession
or that can be obtained through Contributor's reasonable efforts (without,
however, the expenditure of any additional money or the incurring of any
additional liability by Contributor not contemplated herein (including Exhibit
G)) in Contributor's capacity as a partner or interest holder of any
Participating Entity shall be delivered to the Operating Partnership;

            (f) an affidavit from Contributor, stating under penalty of perjury,
Contributor's United States Taxpayer Identification Number and that Contributor
is not a foreign person pursuant to section 1445(b)(2) of the Code and a
comparable affidavit satisfying California and any other withholding
requirements;

            (g) a certificate affirming that the representations and warranties
made by Contributor under this Agreement remain true and correct as of the
Closing Date, and that all

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obligations to be performed by Contributor under this Agreement have been
performed by Contributor on or before the Closing Date;

            (h) if requested by the Operating Partnership, a certified copy of
all appropriate corporate resolutions or partnership or limited liability
company actions authorizing the execution, delivery and performance by
Contributor of this Agreement, any related documents and the Closing Documents;

            (i) If requested by the Operating Partnership in the case of any
Contributor that is a corporation, limited liability company, partnership, trust
or other entity, an opinion from counsel for Contributor in form and content
reasonably acceptable to the Operating Partnership substantially to the effect
that:

                  (i)   Contributor is a limited partnership, corporation,
limited liability company or trust duly organized, validly existing and in good
standing under the laws of the state of its organization and had and has all
applicable power and authority necessary to enter into, deliver and perform this
Agreement, the other agreements contemplated hereby and any other documents or
instruments to be executed and delivered by Contributor at Closing;

                  (ii)  None of the execution, delivery or performance of this
Agreement, the documents required pursuant hereto and the transactions
contemplated hereby and thereby does or will, with or without the giving of
notice, lapse of time, or both, (A) violate, conflict with, result in a breach
of, or constitute a default under or give to others any right of termination or
cancellation of (1) the organizational documents, including the charter and
bylaws, if any, of Contributor, (2) any material agreement, document or
instrument to which Contributor is a party or by which Contributor, its
Participating Entity Interests or any of its assets or properties are bound or
(3) any applicable law, or any judgment, order, writ, injunction or decree of
any governmental or regulatory authority that is binding on Contributor or
Contributor, its Participating Entity Interests or any of its assets or
properties are bound or (B) result in the creation of any Lien upon the
Participating Entity Interests or the Property; and

                  (iii) all applicable entity action necessary for Contributor
to execute, deliver and perform this Agreement, the other agreements
contemplated hereby and any other documents or instruments to be delivered at
Closing has been taken and that the same have been validly executed and
delivered and are the valid and binding obligations of such Contributor
enforceable against it in accordance with their terms, as such enforceability
may be limited by bankruptcy or the application of equitable principals;

            (j)   evidence reasonably satisfactory to the Operating Partnership
that the lender of any borrowed money set forth in Schedule 2.1 has consented to
the transaction as required by any loan document, deed of trust, mortgage or
other evidence of indebtedness related to the Property; and

            (k)   any other documents reasonably requested by the Operating
Partnership or the Company to assign, transfer, convey, contribute and deliver
the Participating Entity Interests or the Property, as applicable, free and
clear of all Liens, and effectuate the transactions contemplated hereby,
including, without limitation, to the extent applicable, assignment of

                                       10
<PAGE>

ground leases, bills of sale and assignment, and any documents reasonably
requested by the Operating Partnership to enable a title insurance company
selected by the Operating Partnership, in its sole discretion, to issue to the
Operating Partnership as of the Closing Date American Land Title Assurances
policies of title insurance with appropriate endorsements (including, without
limitation, non-imputation endorsements to the extent available) and levels of
reinsurance for the Properties (the "Title Policies"), insuring fee simple
and/or leasehold title to all real property and improvements comprising all or
any part of the Properties to the Operating Partnership as the Operating
Partnership may designate, subject only to the Permitted Liens (as defined in
Exhibit G), and all state and local transfer tax returns and any filings with
any applicable governmental jurisdiction in which the Operating Partnership is
required to file its partnership documentation or the recording of the
Contribution and Assumption Agreement or deed or other Property Interests
transfer documents is required.

            Contributor acknowledges and agrees that if the transaction is
consummated as a Direct Contribution, Merger or Division, in addition to (a) the
closing deliveries listed above, (b) the closing conditions listed in Section
2.1 herein and (c) the covenants by Contributor listed in Sections 4.1 and 4.2
herein, the Operating Partnership, at its sole and absolute discretion, may
require additional closing deliveries that contributing entities customarily
provide in that type of transaction, and may require additional closing
conditions and covenants in favor of the Operating Partnership that are
customary in the type of transaction contemplated.

      Section 2.4 Closing Costs.

            The Operating Partnership shall pay any documentary transfer taxes,
escrow charges, title charges and recording taxes or fees and any other closing
costs incurred in connection with the transactions contemplated hereby;
provided, however, that Contributor shall be responsible for its own legal costs
or income tax liability incurred by Contributor in connection herewith subject
to the provisions of Section 5.4.

      Section 2.5 Spousal Consent.

            If required under applicable law, upon the execution of this
Agreement, Contributor shall deliver a spousal consent executed by such
individual's spouse in the form of Exhibit F.

                                   ARTICLE 3.
                 REPRESENTATIONS AND WARRANTIES AND INDEMNITIES

      Section 3.1 Representations and Warranties of the Operating Partnership.

            The Operating Partnership hereby represents and warrants to, and
covenants with, Contributor that:

            (a) Organization; Authority. The Operating Partnership has been duly
formed and is validly existing with requisite partnership power and authority to
enter this Agreement and all agreements contemplated hereby. The persons and
entities executing this Agreement and all agreements contemplated hereby on
behalf of the Operating Partnership have the power and authority to enter into
this Agreement and such other contemplated agreements.

                                       11
<PAGE>

            (b) Due Authorization. The execution, delivery and performance by
the Operating Partnership of its obligations under this Agreement and all
agreements contemplated hereby will not contravene any provision of applicable
law, the OP Partnership Agreement, charter, declaration of trust or other
constituent document of the Operating Partnership, or any agreement or other
instrument binding upon the Operating Partnership or any applicable law,
judgment, order or decree of any governmental body, agency or court having
jurisdiction over the Operating Partnership, and no consent, approval,
authorization or order of or qualification with any governmental body or agency
is required for the performance by the Operating Partnership of its obligations
under this Agreement and all other agreements contemplated hereby.

            (c) No Brokers. The Operating Partnership represents that it has not
entered into, and covenants that it will not enter into, any agreement,
arrangement or understanding with any person or firm that will result in the
obligation of Contributor to pay any finder's fee, brokerage commission or
similar payment in connection with the transactions contemplated hereby.

      Section 3.2 Representations and Warranties of Contributor.

            (a) General. As a material inducement to the Operating Partnership
to enter into this Agreement and to consummate the transactions contemplated
hereby, Contributor represents and warrants to and covenants with the Operating
Partnership as provided in Exhibit G attached hereto, and acknowledges and
agrees to be bound by the indemnification provisions contained therein.
Contributor hereby agrees promptly to give the Operating Partnership written
notice upon obtaining actual knowledge of any information that makes any
representation or warranty made by Contributor hereunder untrue, and in any
event to give written notice within five (5) business days of obtaining actual
knowledge of such information.

            (b) Tax Matters. Contributor (or, if Contributor is not a natural
person, any beneficial owner of Contributor) represents and warrants that each
has obtained from its own counsel advice regarding the tax consequences of (i)
the transfer of Contributor's Participating Entity Interests to the Operating
Partnership and the receipt of the Cash Amount and/or OP Units, as applicable,
as consideration therefor, (ii) Contributor's admission as a limited partner of
the Operating Partnership and (iii) any other transaction contemplated by this
Agreement. Contributor (or, if such Contributor is not a natural person, any
beneficial owner of Contributor) further represents and warrants that it has not
relied on the Operating Partnership or any other Participating Party, or such
Participating Party's affiliates, representatives or counsel for such tax
advice.

      Section 3.3 Indemnification.

            The Operating Partnership shall indemnify and hold harmless
Contributor and its directors, officers, employees, agents, representatives,
beneficiaries and affiliates (each of which is an "Indemnified Contributor
Party") from and against any and all charges, complaints, claims, actions,
causes of action, losses, damages, liabilities and expenses of any nature
whatsoever, including without limitation, amounts paid in settlement, reasonable
attorneys' fees, costs of investigation and remediation, costs of investigative
judicial or administrative proceedings or appeals therefrom and costs of
attachment or similar bonds (collectively, "Losses") arising out of

                                       12
<PAGE>

or relating to, asserted against, imposed upon or incurred by the Indemnified
Contributor Party in connection with: (a) any breach of a representation,
warranty or covenant of the Operating Partnership contained in this Agreement
(including, without limitation, any breach of the Power of Attorney as set forth
in Article 6 below) and (b) the Operating Partnership's operation of any
Participating Entities or the Properties following the Closing; provided,
however, that the Operating Partnership shall have no obligation under this
Agreement to indemnify or hold harmless Contributor from any losses arising from
Contributor's breach of a representation, warranty or covenant of this
Agreement, or from Contributor's gross negligence, willful misconduct or fraud.
The notice and defense requirements set forth in Section 3.4 of Exhibit G
attached hereto shall apply mutatis mutandis to this Section 3.3; provided,
however, that if the Operating Partnership is required to retain counsel, any
such counsel shall be selected by the Operating Partnership. Notwithstanding
anything to the contrary in this Agreement, the Operating Partnership shall not
be liable under this Agreement for monetary damages (or otherwise) for breach of
any of its representations, warranties and covenants contained in this
Agreement, or in any Schedule, certificate or affidavit delivered by it pursuant
hereto, other than pursuant to this Section 3.3 (and the notice and defense
requirements of Section 3.4 of Exhibit G), which represents the exclusive remedy
available to an Indemnified Contributor Party in respect of the matters covered
by this Section 3.3. Notwithstanding anything contained herein to the contrary,
no Indemnified Contributor Party shall have the right to receive or recover
punitive damages against the Operating Partnership by reason of any breach under
or in connection with this Agreement or any schedule, exhibit, certificate or
affidavit or any other document delivered by the Operating Partnership pursuant
to this Agreement, and each Indemnified Contributor Party hereby waives any and
all rights to receive such punitive damages.

                                   ARTICLE 4.
                            COVENANTS OF CONTRIBUTOR

      Section 4.1 Negative Covenants.

            (a) From the date hereof through the Closing, Contributor shall not:

                  (i)   sell, transfer or otherwise dispose (or agree to sell,
transfer or dispose) of all or any portion of its Participating Entity
Interests, without the prior written consent of the Operating Partnership; or

                  (ii)  mortgage, pledge or encumber (or permit to become
encumbered) all or any portion of its Participating Entity Interests.

            (b) From the date hereof through the Closing, Contributor shall
permit the Participating Entity to conduct its business in the ordinary course,
consistent with past practice, and shall not permit the Participating Entity to:

                  (i)   enter into any material transaction not in the ordinary
course of business;

                  (ii)  sell or transfer any assets of such Participating
Entity;

                                       13
<PAGE>

                  (iii) mortgage, pledge or encumber (or permit to become
encumbered) any assets of such Participating Entity, except (x) liens for taxes
not due, (y) purchase money security interests and (z) mechanics' liens being
disputed by such Participating Entity in good faith and by appropriate
proceedings;

                  (iv)  amend, modify or terminate any material agreements or
other instruments to which the Participating Entity is a party;

                  (v)   materially alter the manner of keeping the Participating
Entity's books, accounts or records or the accounting practices therein
reflected; or

                  (vi)  other than in the ordinary course of the Participating
Entity's business consistent with past practice, make any distribution to its
partners or members.

            (c) From the date hereof and subsequent to the Closing, Contributor
agrees to provide the Operating Partnership with such tax information relating
to the Participating Entity Interests that is in Contributor's possession or
control and that is reasonably requested by the Operating Partnership and not
otherwise in the Operating Partnership's possession or control and to cooperate
with the Operating Partnership with respect to its filing of tax returns.

      Section 4.2 Affirmative Covenants.

            (a) Contributor shall use its good faith diligent efforts to obtain
any approvals, waivers or other consents of third parties, governmental
authorities and agencies required to effect the transactions contemplated by
this Agreement. Contributor shall use its good faith diligent efforts to achieve
the tax treatment described in Section 1.7 above.

            (b) Without limiting the obligations of Contributor set forth in
this Agreement, Contributor covenants to use all reasonable efforts within its
control (i) to prevent the breach of any representation or warranty of
Contributor hereunder, (ii) to satisfy all covenants of Contributor hereunder
and (iii) to promptly cure any breach of a representation, warranty or covenant
of Contributor hereunder upon its learning of same. Compliance with this
covenant shall not limit Contributor's liability for a breach of, or failure to
perform, any other representation, warranty or covenant herein.

            (c) From the date hereof through the Closing Date, Contributor will
give prompt written notice to the Operating Partnership of any material
development affecting the Property and the operations and results of operations
related to the Property. Each party hereto will give prompt written notice to
the other parties of any material development affecting the ability of such
party to consummate the transactions contemplated by this Agreement. No
disclosure by any party pursuant to this Section 4.2(c) shall be deemed to amend
or supplement any Schedule or to prevent or cure any misrepresentation, breach
of warranty or breach of covenant.

                                       14
<PAGE>

                                   ARTICLE 5.
                              RELEASES AND WAIVERS

            Each of the releases and waivers enumerated in this Article 5 shall
become effective only upon the Closing of the contribution and exchange of the
Participating Entity Interests pursuant to Articles 1 and 2 herein.

      Section 5.1 General Release of Operating Partnership.

            As of the Closing, Contributor irrevocably waives, releases and
forever discharges the Company, the Operating Partnership and each of the
Operating Partnership's affiliates, partners, agents, attorneys, successors and
assigns of and from, any and all obligations, charges, complaints, claims,
liabilities, damages, actions, causes of action, losses and costs of any nature
whatsoever existing as of the Closing (collectively, "Contributor Claims"),
known or unknown, suspected or unsuspected, arising out of or relating to the
Participating Entity Agreements, the Participating Entities, the Properties or
any other matter which exists at the Closing, except for Contributor Claims
arising from the breach of any representation, warranty, covenant or obligation
of the Operating Partnership under this Agreement, any agreement contemplated
hereby or entered into in connection herewith, or the governing documents of the
Operating Partnership and the Company, subject to the obligations of the Company
and the Operating Partnership under this Agreement.

      Section 5.2 General Release of Contributor.

            As of the Closing, the Operating Partnership (on behalf of itself
and the Company) irrevocably waives, releases and forever discharges Contributor
and Contributor's agents, attorneys, successors and assigns of and from, any and
all obligations, charges, complaints, claims, liabilities, damages, actions,
causes of action, losses and costs of any nature whatsoever existing as of the
Closing (collectively, "Operating Partnership Claims"), known or unknown,
suspected or unsuspected, arising out of or relating to the Participating Entity
Agreements, the Participating Entities, the Properties or any other matter which
exists at the Closing, except for Operating Partnership Claims arising from the
breach of any representation, warranty, covenant or obligation of Contributor
under this Agreement, any agreement contemplated hereby or entered into in
connection herewith, or the governing documents of the Operating Partnership and
the Company, subject to the obligations of Contributor under this Agreement.

      Section 5.3 Waiver of Section 1542 Protections.

            As of the Closing, Contributor and the Operating Partnership (on
behalf of itself and the Company) each expressly acknowledges that it has had,
or has had and waived, the opportunity to be advised by independent legal
counsel and hereby waives and relinquishes all rights and benefits afforded by
Section 1542 of the California Civil Code and do so understanding and
acknowledging the significance and consequence of such specific waiver of
Section 1542 which provides:

                 A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS
                 WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO

                                       15
<PAGE>

                 EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE
                 RELEASE, WHICH IF KNOWN BY HIM MUST HAVE
                 MATERIALLY AFFECTED THE SETTLEMENT WITH THE
                 DEBTOR.

      Section 5.4 Waiver of Rights Under Participating Entity Agreements.

            (a) As of the Closing, Contributor waives and relinquishes all
rights and benefits otherwise afforded to Contributor under the Participating
Entity Agreements including, without limitation, any rights of appraisal, rights
of first offer or first refusal, buy/sell agreements and any right to consent to
or approve of the sale or contribution by the other partners or members of the
Participating Entity of their interests therein to the Operating Partnership.
Contributor acknowledges that the agreements contained herein and the
transactions contemplated hereby and any actions taken in contemplation of the
transactions contemplated hereby may conflict with, and may not have been
contemplated by, certain Participating Entity Agreements or other agreements
among one or more holders of such Participating Entity Interests or one or more
of the partners of any such Participating Entity. With respect to each
Participating Entity and each Property in which a Participating Entity Interest
of Contributor represents a direct or indirect interest, Contributor expressly
gives all Consents (and any consents necessary to authorize the proper parties
in interest to give all Consents) and Waivers necessary or desirable to (i)
facilitate any Conveyance Action relating to such Participating Entity or
Property, (ii) cause the Participating Entity to have authority to transfer the
Participating Entity Interests or Properties to the Operating Partnership and
(iii) allow Contributor to receive OP Units directly from the Participating
Entity if the Participating Entity transfers assets or interests directly to the
Operating Partnership (rather than Contributor's contributing the Participating
Entity Interests hereunder); provided that the Operating Partnership shall hold
Contributor harmless (by an agreement in form and substance reasonably
acceptable to Contributor and consistent with the terms of this Section 5.4) for
any additional adverse tax consequences to Contributor or additional costs or
liabilities incurred by Contributor, in each case solely as a result of any
Conveyance Action and in excess of those contemplated herein (including Exhibit
G) that would have resulted were the transactions consummated pursuant to the
contributions contemplated by Section 1.1. In addition, if the Closing occurs,
this Agreement shall be deemed to be an amendment to any Participating Entity
Agreement to the extent the terms herein conflict with the terms thereof,
including without limitation, terms with respect to allocations, distributions
and the like.

            (b) As used herein, the term "Conveyance Action" means, with respect
to any Participating Entity having a direct or indirect ownership interest in
any Property, (i) the transfer, conveyance or agreement to convey by a partner
thereof or by any holder of an indirect interest therein (whether or not such
partner or holder is the Contributor hereunder) directly, by Direct
Contribution, Merger, Division or otherwise of its direct or indirect interest
in such Participating Entity or Property to the Operating Partnership or the
Company or (ii) the entering into by any such partner or holder any agreement
relating to (x) the formation of the Operating Partnership or the Company or (y)
the direct or indirect acquisition by the Operating Partnership or the Company
of any such direct or indirect interest or (iii) the taking by any such partner
or holder of any action necessary or desirable to facilitate any of the
foregoing, including, without limitation, the following (provided that the same
are taken in furtherance of the foregoing): any sale or

                                       16
<PAGE>

distribution to any person of a direct or indirect interest in such
Participating Entity or Property, the entering into any agreement with any
person that grants to such person the right to purchase a direct or indirect
interest in such Participating Entity or Property and the giving of the Consents
and Waivers contained in this Section or consents or waivers similar thereto in
form or purpose.

            (c) As used herein, the term "Consents" means, with respect to any
such Participating Entity or Property, any consent necessary or desirable under
any Participating Entity Agreement, or any other agreement among all or any of
the holders of interests therein or any other agreement relating thereto or
referred to therein (i) to cause the Participating Entity to have authority to
permit any and all Conveyance Actions relating to such Participating Entity or
the Property held by such Participating Entity, or to amend any such
Participating Entity Agreement and/or other agreements so that no provision
thereof prohibits, restricts, impairs or interferes with any Conveyance Action,
(ii) to admit the Operating Partnership as a substitute limited partner or
general partner of such Participating Entity upon the contribution of a limited
or general Participating Entity Interest, respectively, to the Operating
Partnership and to adopt such amendment as is necessary or desirable to effect
such admission, (iii) to adopt any amendment to such Participating Entity
Agreement as may be necessary or desirable to facilitate the transactions
contemplated herein, either simultaneously with or immediately prior to the
acquisition of any interest therein, (iv) to continue such Participating Entity
following the transfer of interest therein to the Operating Partnership and (v)
to satisfy any requirement of any third party, title company, or governmental
authority with respect to the Conveyance Actions.

            (d) As used herein, the term "Waivers" means, with respect to a
Participating Entity or a Property of which a Participating Entity Interest of
Contributor represents a direct or indirect interest, the waiving of any and all
rights that Contributor may have with respect to, and (to the extent possible)
that any other person may have with respect to, or that may accrue to
Contributor or other person upon the occurrence of, a Conveyance Action relating
to such Participating Entity or Property, including, but not limited to, the
following rights: rights of notice, rights to response periods, rights to
purchase the direct or indirect interests of another partner in such
Participating Entity or Property or to sell Contributor's or other person's
direct or indirect interest therein to another partner, rights to sell
Contributor's or other person's direct or indirect interest therein at a price
other than as provided herein, or rights to prohibit, limit, invalidate,
otherwise restrict or impair any such Conveyance Action or to cause a
termination or dissolution of such Participating Entity because of such
Conveyance Action. Contributor further covenants that it will take no action to
enjoin, or seek damages resulting from, any Conveyance Action permitted
hereunder by any holder of a direct or indirect interest in a Participating
Entity or a Property in which a Participating Entity Interest of Contributor
represents a direct or indirect interest.

            (e) The Waivers and Consents contained in this Section shall
terminate upon the termination of this Agreement, except as to transactions
completed hereunder prior to termination.

                                       17
<PAGE>

                                   ARTICLE 6.
                                POWER OF ATTORNEY

      Section 6.1 Grant of Power of Attorney.

            Contributor hereby irrevocably appoints the Operating Partnership
(or its designee) and any successor thereof from time to time (such Operating
Partnership or designee or any such successor of any of them acting in
Contributor's capacity as attorney-in-fact pursuant hereto, the
"Attorney-In-Fact") as the true and lawful attorney-in-fact and agent of
Contributor, to act in the name, place and stead of Contributor:

            (a) to take for Contributor all steps deemed necessary or advisable
by the Operating Partnership in connection with the registration of the
Company's common stock under the Securities Act of 1933, as amended (the "Act"),
in the Public Offering, including without limitation (i) filing the Registration
Statement under the Act describing the benefits to be received by Contributor in
connection with the formation of the Company and the Public Offering, (ii)
distributing a preliminary prospectus and prospectus regarding the offering of
the Company's common stock (the "Preliminary Prospectus" and "Prospectus")
containing such information as is deemed necessary or desirable to lawfully
effect the Public Offering and (iii) taking such other steps as the
Attorney-in-Fact may deem necessary or advisable;

            (b) to make, execute, acknowledge and deliver all such other
contracts, orders, receipts, notices, requests, instructions, certificates,
consents, letters and other writings relating to the transactions contemplated
by this Agreement (including without limitation the execution of any Closing
Documents or other documents relating to the acquisition by the Attorney-in-Fact
of Contributor's Participating Entity Interests, or to the acquisition of any
interest in the Property by Direct Contribution, Merger or Division, all in
accordance with the terms and conditions of this Agreement, as well as the OP
Partnership Agreement, as it may be amended or revised, any registration rights
agreements and any lock-up agreements);

            (c) to make, acknowledge, verify and file on behalf of Contributor
applications, consents to service of process and such other undertakings or
reports as may be required by law with state commissioners or officers
administering blue sky laws and to take any other action required to facilitate
the exemption for registration of the OP Units and the qualification of the
Company's common stock under the blue sky laws of the jurisdictions in which the
OP Units and the Company's common stock are to be offered; and

            (d) and, in general, to do all things and to take all actions that
the Attorney-in-Fact in its sole discretion may consider necessary or proper in
connection with or to carry out the transactions contemplated by this Agreement
and the Closing Documents, as fully as could Contributor if personally present
and acting (the "Power of Attorney").

            Further, Contributor hereby grants to Attorney-in-Fact a proxy (the
"Proxy") to vote Contributor's Participating Entity Interests on any matter
related to the Formation Transactions presented to any of the Participating
Entity's partners for a vote, including, but not limited to, the transfer of
interests in the Participating Entity by the other partners.

                                       18
<PAGE>

            Each of the Power of Attorney and Proxy and all authority granted
hereby shall be coupled with an interest and therefore shall be irrevocable and
shall not be terminated by any act of Contributor, by operation of law, whether
by the death, disability, incapacity or liquidation of Contributor, or by the
occurrence of any other event or events, and if any other such act or event
shall occur before the completion of the transactions contemplated by this
Agreement, the Attorney-in-Fact shall nevertheless be authorized and directed to
complete all such transactions as if such other act or event had not occurred
and regardless of notice thereof. Contributor agrees that, at the request of
Operating Partnership, it will promptly execute and deliver to the Operating
Partnership a separate power of attorney and proxy on the same terms set forth
in this Article 6, such execution to be witnessed and notarized. Contributor
hereby authorizes the reliance of third parties on each of the Power of Attorney
and Proxy, and waives its rights, if any, against any such third party for its
reliance hereon. Contributor hereby ratifies and confirms all that the
Attorney-in-Fact shall lawfully do or cause to be done by virtue of the exercise
of the powers granted to it by Contributor hereunder.

            Contributor acknowledges that the Operating Partnership has, and any
designee or successor thereof acting as Attorney-in-Fact may have, an economic
interest in the transactions contemplated by this Agreement.

      Section 6.2 Limitation on Liability.

            It is understood that the Attorney-in-Fact assumes no responsibility
or liability to any person by virtue of the Power of Attorney or Proxy granted
by Contributor hereby. Other than as specifically set forth in this Agreement,
the Attorney-in-Fact makes no representations with respect to and shall have no
responsibility for the Formation Transactions or the Public Offering, or the
acquisition of the Participating Entity Interests by the Operating Partnership,
the Registration Statement, the Prospectus or any Preliminary Prospectus, and
shall not be liable for any error or judgement or for any act done or omitted or
for any mistake of fact or law except for its own gross negligence or bad faith.
Contributor agrees that the Attorney-in-Fact may consult with counsel of its own
choice (who may be counsel for the Operating Partnership or its successors or
affiliates), and it shall have full and complete authorization and protection
for any action taken or suffered by it hereunder in good faith and in accordance
with the opinion of such counsel. It is understood that the Attorney-in-Fact
may, without breaching any express or implied obligation to Contributor
hereunder, release, amend or modify any other power of attorney or proxy granted
by any other person under any related agreement.

                                   ARTICLE 7.
                                  MISCELLANEOUS

      Section 7.1 Further Assurances.

            Contributor shall take such other actions and execute and deliver
such additional documents following the Closing as the Operating Partnership may
reasonably request in order to effect the transactions contemplated hereby.

                                       19
<PAGE>

      Section 7.2 Counterparts.

            This Agreement may be executed in one or more counterparts and by
facsimile, each of which shall be deemed an original, but all of which together
shall constitute one and the same instrument.

      Section 7.3 Governing Law.

            This Agreement shall be governed by the internal laws of the State
of California, without regard to the choice of laws provisions thereof.

      Section 7.4 Amendment; Waiver.

            Any amendment hereto shall be in writing and signed by all parties
hereto. No waiver of any provisions of this Agreement shall be valid unless in
writing and signed by the party against whom enforcement is sought.

      Section 7.5 Entire Agreement.

            This Agreement and all related agreements referred to herein
constitute the entire agreement and supersede conflicting provisions set forth
in all other prior agreements and understandings, both written and oral, among
the parties with respect to the subject matter hereof.

      Section 7.6 Assignability.

            This Agreement shall be binding upon, and shall be enforceable by
and inure to the benefit of, the parties hereto and their respective heirs,
legal representatives, successors and assigns; provided, however, that this
Agreement may not be assigned (except by operation of law) by any party without
the prior written consent of the other parties, and any attempted assignment
without such consent shall be void and of no effect, except that the Operating
Partnership may assign this Agreement, the Closing Documents, and its rights and
obligations hereunder and thereunder to an affiliate of the Operating
Partnership without the consent of Contributor.

      Section 7.7 Titles.

            The titles and captions of the Articles, Sections and paragraphs of
this Agreement are included for convenience of reference only and shall have no
effect on the construction or meaning of this Agreement.

      Section 7.8 Third Party Beneficiary.

            No provision of this Agreement is intended, nor shall it be
interpreted, to provide or create any third party beneficiary rights or any
other rights of any kind in any customer, affiliate, stockholder, partner,
member, director, officer or employee of any party hereto or any other person or
entity.

                                       20
<PAGE>

      Section 7.9 Severability.

            If any provision of this Agreement, or the application thereof, is
for any reason held to any extent to be invalid or unenforceable, the remainder
of this Agreement and application of such provision to other persons or
circumstances will be interpreted so as reasonably to effect the intent of the
parties hereto. The parties further agree to replace such void or unenforceable
provision of this Agreement with a valid and enforceable provision that will
achieve, to the extent possible, the economic, business and other purposes of
the void or unenforceable provision and to execute any amendment, consent or
agreement deemed necessary or desirable by the parties to effect such
replacement.

      Section 7.10 Equitable Remedies.

            Contributor agrees that irreparable damage would occur to the
Operating Partnership in the event that any of the provisions of this Agreement
were not performed in accordance with their specific terms or were otherwise
breached. It is accordingly agreed that the Operating Partnership shall be
entitled to an injunction or injunctions to prevent breaches of this Agreement
by Contributor and to enforce specifically the terms and provisions hereof in
any federal or state court located in California (as to which the parties agree
to submit to jurisdiction for the purposes of such action), this being in
addition to any other remedy to which the Operating Partnership is entitled
under this Agreement or otherwise at law or in equity.

      Section 7.11 Confidentiality.

            All press releases or other public communications of any kind
relating to the Public Offering or the transactions contemplated herein, and the
method and timing of release for publication thereof, will be subject to the
prior written approval of the Operating Partnership.

      Section 7.12 Time of the Essence.

            Time is of the essence with respect to all obligations under this
Agreement.

      Section 7.13 Reliance.

            Each party to this Agreement acknowledges and agrees that it is not
relying on tax advice or other advice from the other party to this Agreement,
and that it has or will consult with its own advisors.

      Section 7.14 Survival.

            It is the express intention and agreement of the parties hereto that
the representations, warranties and covenants of Contributor and Operating
Partnership set forth in this Agreement shall survive the consummation of the
transactions contemplated hereby; provided, however, that the representations of
Contributor shall survive only for the period specified in Exhibit G attached
hereto. The provisions of this Agreement that contemplate performance after the
Closing and the obligations of the parties not fully performed at the Closing
shall survive the Closing and shall not be deemed to be merged into or waived by
the instruments of Closing.

                                       21
<PAGE>

      Section 7.15 Notice.

            Any notice to be given hereunder by any party to the other shall be
given in writing by personal delivery, by registered or certified mail, postage
prepaid, return receipt requested or by any nationally-recognized overnight
carrier, and shall be deemed communicated as of the date of personal delivery
(including delivery by overnight courier). Mailed notices shall be addressed as
set forth below, but any party may change the address set forth below by written
notice to other parties in accordance with this paragraph.

            To Contributor:

            __________________
            __________________
            __________________

            To the Operating Partnership:

            BioMed Property, L.P.
            17140 Bernardo Center Drive, Suite 195
            San Diego, CA 92128

      Section 7.16 Termination.

            This Agreement shall terminate if the Closing shall not have
occurred on or prior to December 31, 2004. Upon such termination, this Agreement
shall become void and have no effect, and no party hereto shall have any
liability to the other parties hereto except that nothing herein shall relieve
any party from liability for any breach of this Agreement prior to termination.

                                       22
<PAGE>

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

                                      "OPERATING PARTNERSHIP"

                                      BioMed Property, L.P.,
                                      a Maryland limited partnership

                                        By: BioMed Property Trust, Inc.,
                                        a Maryland corporation, general partner

                                      By:   __________________________________
                                      Name: __________________________________
                                      Title:__________________________________

                                      "CONTRIBUTOR"
                                      ________________________________________

                                      S-1
<PAGE>

                                    EXHIBIT A
                                       TO
                             CONTRIBUTION AGREEMENT

                  CONTRIBUTOR'S PARTICIPATING ENTITY INTERESTS

<TABLE>
<CAPTION>
                                            PROPERTIES HELD BY         PARTICIPATING ENTITY
PARTICIPATING ENTITY                    THE PARTICIPATING ENTITY          CONSIDERATION
<S>                                     <C>                            <C>
Total Contributor Consideration
</TABLE>
                                      A-1
<PAGE>

                                    EXHIBIT B
                                       TO
                             CONTRIBUTION AGREEMENT

                      CONTRIBUTION AND ASSUMPTION AGREEMENT

            FOR GOOD AND VALUABLE CONSIDERATION, the receipt and sufficiency of
which are hereby acknowledged, the undersigned hereby assigns, transfers,
contributes and conveys to BioMed Property, L.P., a Maryland limited partnership
(the "Operating Partnership"), its entire legal and beneficial right, title and
interest in and to (the "Participating Entity"), including, without limitation,
all right, title and interest, if any, of the undersigned in and to the assets
of the Participating Entity and the right to receive distributions of money,
profits and other assets from the Participating Entity, presently existing or
hereafter at any time arising or accruing (such right, title and interest are
hereinafter collectively referred to as the "Participating Entity Interest"), TO
HAVE AND TO HOLD the same unto the Operating Partnership, its successors and
assigns, forever.

            Upon the execution and delivery hereof, the Operating Partnership
assumes all obligations in respect of the Participating Entity Interests.

            The Participating Entity owns certain real property as described in
Attachment "1" attached hereto.

Executed:   ______________, 2004      By: ______________________________

                                       B-1
<PAGE>

                                Attachment "1" to
                      Contribution and Assumption Agreement

                                   PROPERTIES

                                      B-2
<PAGE>

                                    EXHIBIT C
                                       TO
                             CONTRIBUTION AGREEMENT

                                 QUITCLAIM DEED

Order No.
Escrow No.
Loan No.

WHEN RECORDED MAIL TO:

________________________________________________________________________________

MAIL TAX STATEMENTS TO:                 SPACE ABOVE THIS LINE FOR RECORDER'S USE
                                            DOCUMENTARY TRANSFER TAX $ . . . . .

                                                Computed on the consideration or
                                                value of property conveyed; OR

                                                Computed on the consideration or
                                                value less liens or encumbrances
                                                remaining at time of sale.

                                           ____________________________________
                                           Signature of Declarant of Agent
                                           determining tax - Firm Name
_______________________________________________________________________________

                                 QUITCLAIM DEED

FOR VALUABLE CONSIDERATION, receipt of which is hereby acknowledged,
____________________ do(es) hereby REMISE, RELEASE and FOREVER QUITCLAIM to
BioMed Property, L.P., a Maryland limited partnership, the real property in the
City of ________________, County of ________________, State of California,
described on Exhibit "A" attached hereto.

Dated________________________________      ____________________________________

STATE OF CALIFORNIA            )           ____________________________________
                               )           ____________________________________
COUNTY OF_____________________ )           ____________________________________

On _________________________________       ____________________________________
before me,  personally appeared
__________________________ personally      ____________________________________
known to me (or proved to me on the basis
of satisfactory evidence) to be  the
person(s) whose names(s) is/are subscribed
to the within instrument and acknowledged to
me that he/she/they executed the same in
his/her/their authorized capacity(ies), and
that by his/her/their signature(s) on the
instrument the person(s) or the entity upon
behalf of which the person(s) acted, executed
the instrument.

WITNESS my hand and official seal.

Signature______________________________   (This area for official notarial seal)

                                      C-1
<PAGE>

                          Exhibit "A" to Quitclaim Deed

                                LEGAL DESCRIPTION

                                      C-2
<PAGE>

                                    EXHIBIT D
                                       TO
                             CONTRIBUTION AGREEMENT

            ESTIMATED INITIAL PROTECTED GAIN ALLOCABLE TO CONTRIBUTOR

<TABLE>
<CAPTION>
PROPERTY                ESTIMATED INITIAL PROTECTED GAIN
<S>                     <C>
                                _________________
                                _________________
                                _________________
</TABLE>

                                      D-1
<PAGE>

                                    EXHIBIT E
                                       TO
                             CONTRIBUTION AGREEMENT

                                POWER OF ATTORNEY

RECORDING REQUESTED BY
AND WHEN RECORDED MAIL TO

                                POWER OF ATTORNEY

KNOW ALL PERSONS BY THESE PRESENTS: That I,_________________________, the
undersigned, hereby make, constitute and appoint BioMed Property, L.P., a
Maryland limited partnership (or its designees) ("Attorney-in-Fact"), my true
and lawful Attorney for me and in my name, place and stead and for my use and
benefit solely with respect to the following and for no other purpose.
Capitalized terms used herein and not otherwise defined shall have the terms
ascribed to them in that certain Contribution Agreement by and between me and
Attorney-in-Fact (the "Contribution Agreement").

            (a) to take for me all steps deemed necessary or advisable by the
      Attorney-in-Fact in connection with the registration of the common stock
      of BioMed Property Trust, Inc., a Maryland corporation and the general
      partner of the Attorney-in-Fact, under the Act, including without
      limitation (i) filing the Registration Statement under the Act describing
      the benefits to be received by me in connection with the formation of the
      Company and the offering of the Company's common stock, (ii) distributing
      a Preliminary Prospectus and Prospectus containing such information as is
      deemed necessary or desirable to lawfully effect the initial public
      offering of such shares and (iii) taking such other steps as the
      Attorney-in-Fact may deem necessary or advisable;

            (b) to make, execute, acknowledge and deliver all such other
      contracts, orders, receipts, notices, requests, instructions,
      certificates, consents, letters and other writings relating to the
      transactions contemplated by the Contribution Agreement (including without
      limitation the execution of any documents relating to the acquisition by
      the Attorney-in-Fact of the my Participating Entity Interests, or to the
      acquisition of any interest in the Property by Direct Contribution, Merger
      or Division, all in accordance with the terms and conditions of the
      Contribution Agreement, as well as the OP Partnership Agreement, as it may
      be amended or revised, any registration rights agreements and any lock-up
      agreements);

            (c) to make, acknowledge, verify and file on behalf of me
      applications, consents to service of process and such other undertakings
      or reports as may be required by law with state commissioners or officers
      administering blue sky laws and to take any other action required to
      facilitate the exemption for registration of the OP Units and the
      qualification of the Company's common stock under the blue sky laws of the

                                       E-1
<PAGE>

      jurisdictions in which the OP Units and the Company's common stock are to
      be offered; and

            (d) and, in general, to do all things and to take all actions which
      the Attorney-in-Fact in its sole discretion may consider necessary or
      proper in connection with or to carry out the transactions contemplated by
      the Contribution Agreement and the Closing Documents, as fully as I could
      if personally present and acting on behalf of the undersigned.

      GIVING AND GRANTING unto my said Attorney-in-Fact full power and authority
to do and perform all and every act and thing whatsoever requisite, necessary or
appropriate to be done with respect to the foregoing specified transactions as
fully to all intents and purposes as I might or could do if personally present,
hereby ratifying all that my said Attorney-in-Fact shall lawfully do or cause to
be done by virtue of these presents.

      My said Attorney-in-Fact is empowered hereby to determine in its sole
discretion the time when, purpose for and manner in which any power herein
conferred upon him shall be exercised, and the conditions, provisions and
covenants of any instrument or document which may be executed by it pursuant
hereto. Notwithstanding any provision of this Power of Attorney to the contrary,
the Power of Attorney only applies to the transactions contemplated by the
Contribution Agreement and described above and shall only be exercised in
accordance with the Contribution Agreement, solely for the purpose of carrying
out the Closing described in the Contribution Agreement. In no event will this
Power of Attorney be useable or used in contravention of the Contribution
Agreement or to amend or modify the Contribution Agreement; nor will it be used
for any purpose outside those permitted by the Contribution Agreement. This
Power of Attorney expires and becomes null and void when the Contribution
Agreement expires or becomes null and void.

      Under penalties of perjury, I declare that I have examined this
certification and, to the best of my knowledge and belief, it is true, correct
and complete, and I further declare that I have authority to sign this document.

      When the context so requires, the masculine gender includes the feminine
and/or neuter, and the singular number includes the plural.

Dated_______________________________

Signed______________________________

                                      E-2
<PAGE>

STATE OF CALIFORNIA     )
                        )SS
COUNTY OF __________    )

On __________, 2004 before me, _________________________________, personally
appeared ________________________________ personally known to me (or proved to
me on the basis of satisfactory evidence) to the person(s) whose name(s) is/are
subscribed to the within instrument and acknowledged to me that he/she/they
executed the same in his/her/their authorized capacity(ies), and that by
his/her/their signature(s) on the instrument the person(s), or the entity upon
behalf of which the person(s) acted, executed the instrument.

WITNESS my hand and official seal.

Signature ____________________________

                                      E-3
<PAGE>

                                    EXHIBIT F
                                       TO
                             CONTRIBUTION AGREEMENT

                                 SPOUSAL CONSENT

            I acknowledge that I have read and understand the contents of that
certain Contribution Agreement entered into as of May 4, 2004 by and between
BioMed Property, L.P., a Maryland limited partnership (the "Operating
Partnership"), and ___________________ , an individual (the "Contribution
Agreement"). Capitalized items used herein and not otherwise defined herein,
shall have the meaning ascribed in the Contribution Agreement.

            I am aware that by its provisions, subject to certain time
parameters, my spouse agrees to consummate certain transactions and release
certain signature pages to agreements and documents referred to in the
Contribution Agreement, including the contribution of all of
[Ms.][Mr.]______________ 's Participating Entity Interests to the Operating
Partnership for the consideration recited in the Contribution Agreement. I
hereby consent to such undertakings and the transactions and contribution as
contemplated in the Contribution Agreement. I hereby further agree to be bound
by the provisions of the Contribution Agreement to the extent of any community
property interest that I may have that may be affected thereby.

            I hereby further agree that I will not bequeath any interest I have
that may be affected by the Contribution Agreement or any interest therein by my
will if I predecease my spouse to anyone and direct that the residuary clauses
in my will shall not be deemed to apply to any such interest.

Dated: ____________________                By:  ______________________________
                                                Name:
                                                Spouse of:____________________

                                      F-1
<PAGE>

                                    EXHIBIT G
                                       TO
                             CONTRIBUTION AGREEMENT

           REPRESENTATIONS, WARRANTIES AND INDEMNITIES OF CONTRIBUTOR

                      ARTICLE 1 - ADDITIONAL DEFINED TERMS

            For purposes of this Exhibit G, the following terms have the
meanings set forth below. Terms which are not defined below shall have the
meaning set forth for those terms as defined in the Contribution Agreement to
which this Exhibit G is attached:

            Actions: Means all actions, complaints, charges, accusations,
investigations, petitions, suits, arbitrations, mediations or other proceedings,
whether civil or criminal, at law or in equity, or before any arbitrator or
Governmental Entity.

            Claims: Means claims, disputes or Actions pending or, to Knowledge,
threatened that directly or indirectly affect any of Contributor, the
Participating Entity or the Properties.

            Contribution Agreement: Means the Contribution Agreement to which
this Exhibit G is attached.

            Knowledge: Means, with respect to any representation or warranty so
indicated, the actual knowledge, upon reasonable investigation and inquiry in
good faith, of the signatory to the Contribution Agreement.

            Liens: Means, with respect to any real and personal property, each
of the following, other than any of the following that would constitute
Permitted Liens: all mortgages, deeds of trust, pledges, liens, options,
charges, security interests, restrictions, prior assignments, encumbrances,
covenants, encroachments, assessments, rights of others, licenses, easements,
liabilities or claims of any kind or nature whatsoever, direct or indirect,
including, without limitation, interests in or claims to revenues generated by
such property.

            OP Units: Shall have the meaning set forth in the OP Partnership
Agreement.

            Permitted Liens: Means

            (a)   Liens, or deposits made to secure the release of such Liens,
securing taxes, the payment of which is not delinquent or the payment of which
is actively being contested in good faith by appropriate proceedings diligently
pursued;

            (b)   Zoning laws and ordinances generally applicable to the
districts in which the Properties are located which are not violated by the
existing structures or present uses thereof;

            (c)   Liens imposed by laws, such as carriers', warehousemen's and
mechanics' liens, and other similar liens arising in the ordinary course of
business which secure payment of

                                      G-1
<PAGE>

obligations not more than 60 days past due or which are being contested in good
faith by appropriate proceedings diligently pursued;

            (d)   non-exclusive easements for public utilities that do not have
a material adverse effect upon, or interfere with the use of, the Properties;

            (e)   the leases and licenses (and purchase rights contained
therein) affecting the property; and

            (f)   any exceptions contained in the Title Policies.

            Person: Means any individual, corporation, limited liability
company, partnership, joint venture, association, joint-stock company, trust,
unincorporated organization or governmental entity.

            Prospectus: Means the Company's Form S-11 Registration Statement.

            REIT Shares: Shall have the meaning set forth in the OP Partnership
Agreement.

                   ARTICLE 2 - REPRESENTATIONS AND WARRANTIES
                                 OF CONTRIBUTOR

            Contributor represents and warrants to the Operating Partnership as
set forth below in this Article 2. Unless otherwise noted in this Exhibit G,
Contributor makes representations, warranties and indemnities only with respect
to the interests in the Participating Entity to be transferred by Contributor
identified on Exhibit A to the Contribution Agreement.

            2.1   Organization; Authority. Contributor has the full right,
authority, power and legal capacity to enter into the Contribution Agreement and
any other agreement, document or instrument to be executed and delivered by
Contributor pursuant to the Contribution Agreement and to carry out the
transactions contemplated hereby and thereby, including the conveyance of the
Participating Entity Interests free and clear of all Liens. If not a natural
person, Contributor is duly formed, validly existing and in good standing (to
the extent applicable) under the laws of the jurisdiction of its formation, and
has all requisite power and authority to own, lease or operate its property and
to carry on its business as presently conducted and, to the extent required
under applicable law, is qualified to do business and is in good standing in
each jurisdiction in which the nature of its business or the character of its
property make such qualification necessary.

            2.2   Due Authorization. The execution, delivery and performance of
the Contribution Agreement and any other agreement, document or instrument to be
executed and delivered by Contributor pursuant to the Contribution Agreement by
Contributor has been duly and validly authorized by all necessary action of
Contributor. The Contribution Agreement and each agreement, document and
instrument executed and delivered by or on behalf of Contributor pursuant to the
Contribution Agreement constitutes, or when executed and delivered will
constitute, the legal, valid and binding obligation of Contributor, each
enforceable against Contributor in accordance with its terms, as such
enforceability may be limited by bankruptcy or the application of equitable
principles.

                                      G-2
<PAGE>

            2.3   Consents and Approvals. Other than the consent of the
Participating Entity's lenders under loans that will not be repaid in connection
with the Public Offering, if any, no consent, waiver, approval or authorization
of any third party, including any governmental authority, is required to be
obtained by Contributor in connection with the execution, delivery and
performance of the Contribution Agreement and the transactions contemplated
hereby, except any of the foregoing that shall have been satisfied or obtained
prior to the Closing Date.

            2.4   Ownership of the Participating Entity Interests. Contributor
is the sole beneficial and record owner of the Participating Entity Interests to
be transferred by Contributor and has good and valid title to such Participating
Entity Interests.

            2.5   Participating Entity Interests. The Participating Entity
Interests contributed by Contributor constitutes all of the issued and
outstanding interests owned by Contributor in the Participating Entity. The
Participating Entity Interests are validly issued, fully paid and
non-assessable, and were not issued in violation of any preemptive rights. The
Participating Entity Interests have been issued in compliance with applicable
law and the Participating Entity Agreements. There are no rights, subscriptions,
warrants, options, conversion rights, preemptive rights or agreements of any
kind outstanding to purchase or to otherwise acquire any of the interests which
comprise the Participating Entity Interests or any securities or obligations of
any kind convertible into any of the interests which comprise the Participating
Entity Interests or other equity interests or profit participation of any kind
in the Participating Entity. At the Closing, upon receipt of the consideration,
Contributor will have transferred its Participating Entity Interests to the
Operating Partnership free and clear of all Liens.

            2.6   No Violation. Subject to the consent requirements contained in
the loan documents for the Property and the Participating Entity Agreements,
copies of which have been previously provided to the Operating Partnership, none
of the execution, delivery or performance of the Contribution Agreement, the
documents required pursuant thereto and the transactions contemplated hereby and
thereby does or will, with or without the giving of notice, lapse of time, or
both, (a) violate, conflict with, result in a breach of, or constitute a default
under or give to others any right of termination or cancellation of (i) the
organizational documents, including the charters and bylaws, if any, of
Contributor, (ii) any material agreement, document or instrument to which
Contributor is a party or by which Contributor, its Participating Entity
Interests or any of its assets or properties are bound or iii) any applicable
law, or term or provision of any judgment, order, writ, injunction, or decree of
any governmental or regulatory authority, which is binding on Contributor or by
which Contributor or any of its assets or properties are bound or subject or
(ii) result in the creation of any Lien upon the Participating Entity Interests
or the Property.

            2.7   Non-Foreign Status. Contributor is not a foreign person,
foreign corporation, foreign partnership, foreign trust or foreign estate (as
defined in the Code), and is, therefore, not subject to the provisions of the
Code relating to the withholding of sales proceeds to foreign persons.

            2.8   Withholding. Contributor shall execute at Closing such
certificates or affidavits reasonably necessary to document the inapplicability
of any federal or state

                                      G-3
<PAGE>

withholding provisions, including those referred to in Section 2.8 above and
similar provisions under California law. If Contributor fails to provide such
certificates or affidavits, the Operating Partnership may withhold a portion of
any payments otherwise to be made to Contributor as required by the Code or
California law.

            2.9   Investment Purposes. Contributor acknowledges Contributor's
understanding that the OP Units to be acquired pursuant to the Contribution
Agreement and any common stock of the Company into which the OP Units may be
exchanged in certain circumstances (the "Common Stock") are not being registered
under the Securities Act of 1933, as amended and the rules and regulations in
effect thereunder (the "Act") or any applicable state blue sky laws pursuant to
a specific exemption or exemptions therefrom, and the Operating Partnership's
reliance on such exemptions is predicated in part on the accuracy and
completeness of the representations and warranties of Contributor. In
furtherance thereof, Contributor represents and warrants to the Company as
follows:

                  2.9.1 Investment. Contributor is acquiring the OP Units solely
for Contributor's own account for the purpose of investment and not as a nominee
or agent for any other person and not with a view to, or for offer or sale in
connection with, any distribution of any thereof. Contributor agrees and
acknowledges that he, she or it will not, directly or indirectly, offer,
transfer, sell, assign, pledge, hypothecate or otherwise dispose of
(hereinafter, "Transfer") any of the OP Units (or Common Stock that might be
exchanged therefor) unless (i) the Transfer is pursuant to an effective
registration statement under the Act and qualification or other compliance under
applicable blue sky or state securities laws or (ii) counsel for Contributor
(which counsel shall be reasonably acceptable to the Operating Partnership)
shall have furnished the Operating Partnership with an opinion, reasonably
satisfactory in form and substance to the Operating Partnership, to the effect
that no such registration is required because of the availability of an
exemption from registration under the Act and qualification or other compliance
under applicable blue sky or state securities laws.

                  2.9.2 Knowledge. Contributor is knowledgeable, sophisticated
and experienced in business and financial matters; Contributor has previously
invested in securities similar to the OP Units and fully understands the
limitations on transfer imposed by the Federal securities laws and as described
in the Contribution Agreement. Contributor is able to bear the economic risk of
holding the OP Units for an indefinite period and is able to afford the complete
loss of Contributor's investment in the OP Units. Contributor has received and
reviewed all information and documents about or pertaining to the Company, the
Operating Partnership, the business and prospects of the Company and the
Operating Partnership and the issuance of the OP Units as Contributor deems
necessary or desirable, and has been given the opportunity to obtain any
additional information or documents and to ask questions of the proposed
management of the Operating Partnership and the Company and receive answers
about such information and documents, the Company, the Operating Partnership,
the business and prospects of the Company and the Operating Partnership and the
OP Units that Contributor deems necessary or desirable to evaluate the merits
and risks related to Contributor's investment in the OP Units. Contributor
acknowledges that any such questions posed were answered to Contributor's
satisfaction. Contributor understands and has taken cognizance of all risk
factors related to the purchase of the OP Units.

                                      G-4
<PAGE>

                  2.9.3 Holding Period. Contributor acknowledges that he, she or
it has been advised that (i) unless the OP Units and the Common Stock into which
the OP Units may be exchanged are subsequently registered under the Act or an
exemption from such registration is available, such OP Units and Common Stock
must be held (and Contributor must continue to bear the economic risk of the
investment in the OP Units and any Common Stock that might be exchanged
therefor) indefinitely, (ii) a restrictive legend in the form hereafter set
forth shall be placed on the certificates representing the OP Units (and any
Common Stock that might be exchanged therefor) and (iii) a notation shall be
made in the appropriate records of the Operating Partnership (and the Company)
indicating that the OP Units (and any Common Stock that might be exchanged
therefor) are subject to restrictions on transfer.

                  2.9.4 Accredited Investor. Contributor is an "accredited
investor" (as such term is defined in Rule 501 (a) of Regulation D under the
Act). Contributor has previously provided to the Operating Partnership a duly
executed Accredited Investor Questionnaire. No event or circumstance has
occurred since delivery of such Questionnaire that would make the statements
contained therein false or misleading.

                  2.9.5 Legending. Each certificate representing the OP Units
(and any Common Stock that might be exchanged therefor) shall bear the following
legend:

      THE SECURITIES EVIDENCED HEREBY HAVE NOT BEEN REGISTERED UNDER THE
      SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR THE SECURITIES LAWS OF
      ANY STATE AND MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF IN THE
      ABSENCE OF SUCH REGISTRATION, UNLESS THE TRANSFEROR DELIVERS TO THE
      COMPANY AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY, TO THE EFFECT
      THAT THE PROPOSED SALE, TRANSFER OR OTHER DISPOSITION MAY BE EFFECTED
      WITHOUT REGISTRATION UNDER THE ACT AND UNDER APPLICABLE STATE SECURITIES
      OR "BLUE SKY" LAWS;

            In addition, the Common Stock for which the OP Units might be
exchanged shall also bear a legend which generally provides the following:

      THE SHARES OF COMMON STOCK REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO
      RESTRICTIONS ON BENEFICIAL AND CONSTRUCTIVE OWNERSHIP AND TRANSFER FOR THE
      PURPOSE OF THE CORPORATION'S MAINTENANCE OF ITS STATUS AS A REAL ESTATE
      INVESTMENT TRUST UNDER THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE
      "CODE"). SUBJECT TO CERTAIN FURTHER RESTRICTIONS AND EXCEPT AS EXPRESSLY
      PROVIDED IN THE CORPORATION'S CHARTER, (1) NO PERSON MAY BENEFICIALLY OWN
      OR CONSTRUCTIVELY OWN SHARES OF THE CORPORATION'S COMMON STOCK IN EXCESS
      OF 9.8% (BY VALUE OR BY NUMBER OF SHARES, WHICHEVER IS MORE RESTRICTIVE)
      OF THE OUTSTANDING COMMON STOCK OF THE CORPORATION; (2) NO PERSON MAY
      BENEFICIALLY OR CONSTRUCTIVELY OWN SHARES OF COMMON STOCK THAT WOULD
      RESULT IN THE CORPORATION BEING "CLOSELY HELD" UNDER SECTION 856 (H) OF
      THE CODE OR OTHERWISE CAUSE THE

                                      G-5
<PAGE>

      CORPORATION TO FAIL TO QUALIFY AS A REIT; AND (3) NO PERSON MAY TRANSFER
      SHARES OF COMMON STOCK IF SUCH TRANSFER WOULD RESULT IN THE CAPITAL STOCK
      OF THE CORPORATION BEING OWNED BY FEWER THAN 100 PERSONS. ANY PERSON WHO
      BENEFICIALLY OR CONSTRUCTIVELY OWNS OR ATTEMPTS TO BENEFICIALLY OR
      CONSTRUCTIVELY OWN SHARES OF COMMON STOCK IN VIOLATION OF THE ABOVE
      LIMITATIONS MUST IMMEDIATELY NOTIFY THE CORPORATION. IF ANY OF THE
      RESTRICTIONS ON TRANSFER OR OWNERSHIP ARE VIOLATED, THE SHARES OF COMMON
      STOCK REPRESENTED HEREBY WILL BE AUTOMATICALLY TRANSFERRED TO THE TRUSTEE
      OF A TRUST FOR THE BENEFIT OF ONE OR MORE CHARITABLE BENEFICIARIES. IN
      ADDITION, THE CORPORATION MAY REDEEM SHARES UPON THE TERMS AND CONDITIONS
      SPECIFIED BY THE BOARD OF DIRECTORS IN ITS SOLE DISCRETION IF THE BOARD OF
      DIRECTORS DETERMINES THAT OWNERSHIP OR A TRANSFER OR OTHER EVENT MAY
      VIOLATE THE RESTRICTIONS DESCRIBED ABOVE. FURTHERMORE, UPON THE OCCURRENCE
      OF CERTAIN EVENTS, ATTEMPTED TRANSFERS IN VIOLATION OF THE RESTRICTIONS
      DESCRIBED ABOVE MAY BE VOID AB INITIO. ALL TERMS IN THIS LEGEND THAT ARE
      DEFINED IN THE CHARTER OF THE CORPORATION SHALL HAVE THE MEANINGS ASCRIBED
      TO THEM IN SUCH CHARTER, AS THE SAME MAY BE AMENDED FROM TIME TO TIME, A
      COPY OF WHICH, INCLUDING THE RESTRICTIONS ON TRANSFER AND OWNERSHIP, WILL
      BE FURNISHED TO EACH HOLDER OF SHARES OF COMMON STOCK ON REQUEST AND
      WITHOUT CHARGE. REQUESTS FOR SUCH A COPY MAY BE DIRECTED TO THE SECRETARY
      OF THE CORPORATION AT ITS PRINCIPAL OFFICE.

            2.10  No Brokers. Neither Contributor nor any of Contributor's
respective officers, directors or employees has employed or made any agreement
with any broker, finder or similar agent or any person or firm that will result
in the obligation of the Operating Partnership or any of its affiliates to pay
any finder's fee, brokerage fees or commissions or similar payment in connection
with the transactions contemplated by the Contribution Agreement.

            2.11  Solvency. Contributor has been and will be solvent at all
times prior to and immediately following the transfer of the Participating
Entity Interests to the Operating Partnership.

            2.12  No Misrepresentations. No representation, warranty or
statement made, or information provided, by Contributor in the Contribution
Agreement or in any other document or instrument furnished or to be furnished by
or on behalf of Contributor pursuant hereto or as contemplated hereby (i)
contains or will contain any untrue statement of a material fact or (ii) omits
or will omit to state a material fact necessary to make the statements contained
herein or therein not misleading.

            2.13  NASD Affiliation. Contributor represents severally that
neither it nor any affiliate of Contributor is a member, affiliate of a member
or person associated with a member of the National Association of Securities
Dealers, Inc. ("NASD"). Contributor further represents

                                      G-6
<PAGE>

severally that neither it nor any of its affiliates owns any stock or other
securities of any NASD member not purchased in the open market, or has made any
outstanding subordinated loans to a NASD member. (A company or natural person is
presumed to control a member of the NASD and is therefore presumed to constitute
an affiliate of such member if the Company or person is the beneficial owner of
10% or more of the outstanding securities of a member which is a corporation.
Additionally, a natural person is presumed to control a member of the NASD and
is therefore presumed to constitute an affiliate of such a member if such person
has the power to direct or cause the direction of the management or policies of
such member.)

                          ARTICLE 3 - INDEMNIFICATION

            3.1   Survival of Representations and Warranties; Remedy for Breach.

            (a)   Subject to Section 3.6, all representations and warranties
contained in this Exhibit G or in any Schedule or certificate delivered pursuant
hereto shall survive the Closing.

            (b)   Notwithstanding anything to the contrary in the Contribution
Agreement or this Exhibit G, no party hereto shall be liable under this Exhibit
G or the Contribution Agreement for monetary damages (or otherwise) for breach
of any of its representations and warranties contained in this Exhibit G or the
Contribution Agreement, or in any Schedule, certificate or affidavit delivered
by it pursuant thereto, other than pursuant to the succeeding provisions of this
Article 3.

            3.2   General Indemnification.

            (a)   Contributor shall indemnify and hold harmless the Operating
Partnership, the Company, and their affiliates and each of their respective
directors, officers, employees, agents, representatives and affiliates (each of
which is an "Indemnified Party") from and against any and all claims, losses,
damages, liabilities and expenses, including, without limitation, amounts paid
in settlement, reasonable attorneys' fees, costs of investigation and
remediation, costs of investigative, judicial or administrative proceedings or
appeals therefrom, and costs of attachment or similar bonds (collectively,
"Losses"), asserted against, imposed upon or incurred by the Indemnified Party
in connection with or as a result of (i) any breach, untruth or inaccuracy of a
representation or warranty of Contributor contained in the Contribution
Agreement, Closing Document or in any Schedule, certificate or affidavit
delivered by Contributor pursuant to the Contribution Agreement or (ii) the
failure, partial or total, to perform a covenant or agreement made by
Contributor in the Contribution Agreement, Closing Document or in any Schedule,
certificate or affidavit delivered by Contributor pursuant to the Contribution
Agreement.

            (b)   Contributor shall indemnify and hold harmless the Indemnified
Parties from and against any and all Losses, asserted against, imposed upon or
incurred by the Indemnified Parties in connection with or as a result of:

                  (i)   all fees and expenses of Contributor in connection with
the transactions contemplated by the Contribution Agreement; or

                                      G-7
<PAGE>

                  (ii)  any liabilities or obligations incurred, arising from or
out of, in connection with or as a result of the failure of Contributor to
obtain any undisclosed consents that are required to consummate the transactions
contemplated by the Contribution Agreement.

            3.3   Payment of Indemnification. Contributor may satisfy its
obligations hereunder by the prompt delivery (paid promptly as and when expenses
are incurred) to an Indemnified Party of OP Units, subject to the limits on
ownership and transfer of REIT shares set forth in the Company's articles of
incorporation. Any OP Units delivered to an Indemnified Party hereunder shall be
valued based upon the initial public offering price of the Company's Common
Stock.

            3.4   Notice and Defense of Claims. As soon as reasonably
practicable after receipt by the Indemnified Party of notice of any liability or
claim incurred by or asserted against the Indemnified Party that is subject to
indemnification under this Article 3, the Indemnified Party shall give notice
thereof to Contributor, including liabilities or claims to be applied against
the indemnification baskets established pursuant to Section 3.5 of this Exhibit
G. The Indemnified Party may at its option demand indemnity under this Article 3
as soon as a claim has been threatened by a third party, regardless of whether
an actual Loss has been suffered, so long as the Indemnified Party shall in good
faith determine that such claim is not frivolous and that the Indemnified Party
may be liable for, or otherwise incur, a Loss as a result thereof and shall give
notice of such determination to Contributor. The Indemnified Party shall permit
Contributor, at its option and expense, to assume the defense of any such claim
by counsel selected by Contributor and reasonably satisfactory to the
Indemnified Party, and to settle or otherwise dispose of the same; provided,
however, that the Indemnified Party may at all times participate in such defense
at its expense; and provided further, however, that Contributor shall not, in
defense of any such claim, except with the prior written consent of the
Indemnified Party in its sole and absolute discretion, consent to the entry of
any judgment or enter into any settlement that does not include as an
unconditional term thereof the giving by the claimant or plaintiff in question
to the Indemnified Party and its affiliates a release of all liabilities in
respect of such claims, or that does not result only in the payment of money
damages. If Contributor shall fail to undertake such defense within 30 days
after such notice, or within such shorter time as may be reasonable under the
circumstances, then the Indemnified Party shall have the right to undertake the
defense, compromise or settlement of such liability or claim on behalf of and
for the account of Contributor.

            3.5   Limitations on and Threshold for Indemnification Under Section
3.2.

            (a)   Contributor shall not be liable under Section 3.2 of this
Exhibit G unless and until the total amount recoverable by the Indemnified
Parties under Section 3.2 of this Exhibit G exceeds $250,000; provided, however,
that once the total amount recoverable by the Indemnified Parties under Section
3.2 of this Exhibit G exceeds $250,000 in the aggregate, Contributor's
obligation under Section 3.2 of this Exhibit G shall be for the full amount of
such obligation.

            (b)   Notwithstanding anything contained herein to the contrary,
Contributor shall not be liable or obligated to make payments under this Article
3 with respect to any Participating Entity Interests to the extent such payments
in the aggregate would exceed the Cash

                                      G-8
<PAGE>

Amount or the value of the OP Units (based upon the initial public offering
price of the Common Stock) received by Contributor at the Closing.
Notwithstanding anything contained herein to the contrary, the Indemnified
Parties shall look first to Contributor's OP Units for indemnification under
this Article 3 and then to Contributor's other assets.

            3.6   Limitation Period.

            (a)   Notwithstanding the foregoing, any claim for indemnification
under Section 3.2 of this Exhibit G must be asserted in writing by the
Indemnified Party, stating the nature of the Losses and the basis for
indemnification therefore within one year after the Closing in the case of a
claim under Section 3.2 of this Exhibit G.

            (b)   If so asserted in writing within one year after the Closing,
such claims for indemnification shall survive until resolved by mutual agreement
between Contributor and the Indemnified Party or by judicial determination. Any
claim for indemnification not so asserted in writing within one year after the
Closing shall not thereafter be asserted and shall forever be waived.

            3.7   Reservation of Contributor Rights. Notwithstanding anything
else in this Exhibit G or the Contribution Agreement to the contrary,
Contributor reserves unto itself all rights and remedies (including rights to
seek contribution) against any third party indemnitors and prior property owners
or occupants for which the Participating Entity has been indemnified by
Contributor hereunder. To the extent Contributor's rights against any such third
party indemnitors, owners or occupants may be prejudiced by actions or inactions
by any owner or occupant of the Properties after the Closing, Contributor's
indemnity obligation shall be reduced in accordance with the effect of the
actions or inactions which so prejudiced Contributor's rights.

                                      G-9
<PAGE>

                                    EXHIBIT H
                                       TO
                             CONTRIBUTION AGREEMENT

                      CERTIFICATION OF NON-FOREIGN STATUS(1)

      Section 1445 of the Internal Revenue Code of 1986, as amended, provides
that a transferee of a United States real property interest must withhold tax if
the transferor is a foreign person. To inform BioMed Property, L.P., a Maryland
limited partnership (the "Operating Partnership"), that the withholding of tax
is not required upon the contribution of Participating Entity Interests by
_______________________________ , an individual (the "Contributor"), to the
Operating Partnership in exchange for Units, which transfer occurred on
[__________], 2004, the undersigned hereby certifies the following on behalf of
Contributor:

      1. Contributor is not a foreign corporation, foreign partnership, foreign
trust or foreign estate (as those terms are defined in the Code and the Treasury
Regulations promulgated thereunder);

      2. Contributor's social security number is ______________; and

      3. Contributor's [office][home] address is:

            _______________________________
            _______________________________

      The undersigned understands that this certification may be disclosed to
the Internal Revenue Service by the Operating Partnership and that any false
statement contained herein could be punishable by fine, imprisonment or both.

      Under penalties of perjury, I declare that I have examined this
certification and, to the best of my knowledge and belief, it is true, correct
and complete, and I further declare that I have authority to sign this document
on behalf of Contributor.

Executed:   ______________, 2004         By:________________________________

----------
(1)   Capitalized terms which are used but not otherwise defined herein shall
      have the meanings ascribed to them in that certain Contribution Agreement,
      dated May 4, 2004.
<PAGE>

                         CALIFORNIA FRANCHISE TAX BOARD

                                   Form 597-WExhibit 4.1

                             FIXED RATE SENIOR NOTE

REGISTERED                                                      REGISTERED
No. FXR                                                         U.S. $
                                                                CUSIP:

     Unless this certificate is presented by an authorized representative of
The Depository Trust Company (55 Water Street, New York, New York) to the
issuer or its agent for registration of transfer, exchange or payment, and any
certificate issued is registered in the name of Cede & Co. or such other name
as requested by an authorized representative of The Depository Trust Company
and any payment is made to Cede & Co., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF
FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL since the registered
owner hereof, Cede & Co., has an interest herein.

                                      A-1
<PAGE>

                                 MORGAN STANLEY
                   SENIOR GLOBAL MEDIUM-TERM NOTES, SERIES C
                                  (Fixed Rate)

                         STOCK PARTICIPATION ACCRETING
               REDEMPTION QUARTERLY-PAY SECURITIES(SM) ("SPARQS")

                        10% SPARQS(R) DUE JULY 15, 2005
                            MANDATORILY EXCHANGEABLE
                         FOR SHARES OF COMMON STOCK OF
                                   AVAYA INC.

<TABLE>
--------------------------------------------------------------------------------------------------------------------------
<S>                           <C>                          <C>                          <C>
ORIGINAL ISSUE DATE:          INITIAL REDEMPTION           INTEREST RATE:  % per        MATURITY DATE:
                                 DATE: See "Morgan            annum (equivalent            See "Maturity Date"
                                 Stanley Call Right"          to $      per annum per      below.
                                 below.                       SPARQS)
--------------------------------------------------------------------------------------------------------------------------
INTEREST ACCRUAL              INITIAL REDEMPTION           INTEREST PAYMENT             OPTIONAL
   DATE:                         PERCENTAGE: See              DATE(S): See "Interest       REPAYMENT
                                 "Morgan Stanley Call         Payment Dates" below.        DATE(S):  N/A
                                 Right" and "Call Price"
                                 below.
--------------------------------------------------------------------------------------------------------------------------
SPECIFIED CURRENCY:           ANNUAL REDEMPTION            INTEREST PAYMENT             APPLICABILITY OF
   U.S. dollars                  PERCENTAGE                   PERIOD: Quarterly            MODIFIED
                                 REDUCTION: N/A                                            PAYMENT UPON
                                                                                           ACCELERATION OR
                                                                                           REDEMPTION: See
                                                                                           "Alternate Exchange
                                                                                           Calculation in Case of
                                                                                           an Event of Default"
                                                                                           below.
--------------------------------------------------------------------------------------------------------------------------
IF SPECIFIED                  REDEMPTION NOTICE            APPLICABILITY OF             If yes, state Issue Price:
   CURRENCY OTHER                PERIOD: At least 10          ANNUAL INTEREST              N/A
   THAN U.S. DOLLARS,            days but no more than        PAYMENTS: N/A
   OPTION TO ELECT               30 days.  See "Morgan
   PAYMENT IN U.S.               Stanley Call Right" and
   DOLLARS: N/A                  "Morgan Stanley Notice
                                 Date" below.
--------------------------------------------------------------------------------------------------------------------------
EXCHANGE RATE                 TAX REDEMPTION               PRICE APPLICABLE             ORIGINAL YIELD TO
   AGENT: N/A                    AND PAYMENT OF            UPON OPTIONAL                   MATURITY: N/A
                                 ADDITIONAL                REPAYMENT: N/A
                                 AMOUNTS: N/A
--------------------------------------------------------------------------------------------------------------------------
OTHER PROVISIONS:             IF YES, STATE INITIAL
   See below.                 OFFERING DATE: N/A
--------------------------------------------------------------------------------------------------------------------------
</TABLE>

For the purposes of this note, paragraph number 10 of Section 2.08 of the
Amended and Restated Indenture, dated as of May 1, 1999, between the Issuer and
JPMorgan Chase Bank (formerly known as The Chase Manhattan Bank) as Trustee,
shall not apply.

 Issue Price................... $        per each $       principal amount
                                of this SPARQS

Maturity Date.................. July 15, 2005, subject to acceleration as
                                described below in "Price Event Acceleration"
                                and "Alternate Exchange

                                      A-2
<PAGE>

                                Calculation in Case of an Event of Default" and
                                subject to extension if the Final Call Notice
                                Date is postponed in accordance with the
                                following paragraph.

                                If the Final Call Notice Date is postponed
                                because it is not a Trading Day or due to a
                                Market Disruption Event or otherwise and the
                                Issuer exercises the Morgan Stanley Call Right,
                                the Maturity Date shall be postponed so that
                                the Maturity Date will be the tenth calendar
                                day following the Final Call Notice Date. See
                                "Final Call Notice Date" below.

                                In the event that the Final Call Notice Date is
                                postponed because it is not a Trading Day or
                                due to a Market Disruption Event or otherwise,
                                the Issuer shall give notice of such
                                postponement as promptly as possible, and in no
                                case later than two Business Days following the
                                scheduled Final Call Notice Date, (i) to the
                                holder of this SPARQS by mailing notice of such
                                postponement by first class mail, postage
                                prepaid, to the holder's last address as it
                                shall appear upon the registry books, (ii) to
                                the Trustee by telephone or facsimile confirmed
                                by mailing such notice to the Trustee by first
                                class mail, postage prepaid, at its New York
                                office and (iii) to The Depository Trust
                                Company (the "Depositary") by telephone or
                                facsimile confirmed by mailing such notice to
                                the Depositary by first class mail, postage
                                prepaid. Any notice that is mailed in the
                                manner herein provided shall be conclusively
                                presumed to have been duly given, whether or
                                not the holder of this SPARQS receives the
                                notice. Notice of the date to which the
                                Maturity Date has been rescheduled as a result
                                of postponement of the Final Call Notice Date,
                                if applicable, shall be included in the
                                Issuer's notice of exercise of the Morgan
                                Stanley Call Right.

Interest Payment Dates.........

                                If the scheduled Maturity Date is postponed due
                                to a Market Disruption Event or otherwise, the
                                Issuer shall pay interest on the Maturity Date
                                as postponed rather than on July 15, 2005, but
                                no interest will accrue on this SPARQS or on
                                such payment during the period from or after
                                the scheduled Maturity Date.

                                      A-3
<PAGE>

Record Date.................... Notwithstanding the definition of "Record Date"
                                on page 22 hereof, the Record Date for each
                                Interest Payment Date, including the Interest
                                Payment Date scheduled to occur on the Maturity
                                Date, shall be the date 5 calendar days prior
                                to such scheduled Interest Payment Date,
                                whether or not that date is a Business Day;
                                provided, however, that in the event that the
                                Issuer exercises the Morgan Stanley Call Right,
                                no Interest Payment Date shall occur after the
                                Morgan Stanley Notice Date, except for any
                                Interest Payment Date for which the Morgan
                                Stanley Notice Date falls on or after the
                                "ex-interest" date for the related interest
                                payment, in which case the related interest
                                payment shall be made on such Interest Payment
                                Date; and provided, further, that accrued but
                                unpaid interest payable on the Call Date, if
                                any, shall be payable to the person to whom the
                                Call Price is payable. The "ex- interest" date
                                for any interest payment is the date on which
                                purchase transactions in the SPARQS no longer
                                carry the right to receive such interest
                                payment.

                                In the event that the Issuer exercises the
                                Morgan Stanley Call Right and the Morgan
                                Stanley Notice Date falls before the
                                "ex-interest" date for an interest payment, so
                                that as a result a scheduled Interest Payment
                                Date will not occur, the Issuer shall cause the
                                Calculation Agent to give notice to the Trustee
                                and to the Depositary, in each case in the
                                manner and at the time described in the second
                                and third paragraphs under "Morgan Stanley Call
                                Right" below, that no Interest Payment Date
                                will occur after such Morgan Stanley Notice
                                Date.

Denominations.................  $           and integral multiples thereof

Morgan Stanley Call Right.....  On any scheduled Trading Day on or after
                                December   , 2004 or on the Maturity Date
                                (including the Maturity Date as it may be
                                extended and regardless of whether the Maturity
                                Date is a Trading Day), the Issuer may call the
                                SPARQS, in whole but not in part, for mandatory
                                exchange for the Call Price paid in cash
                                (together with accrued but unpaid interest) on
                                the Call Date.

                                On the Morgan Stanley Notice Date, the Issuer
                                shall give notice of the Issuer's exercise of
                                the Morgan Stanley Call Right (i) to the holder
                                of this SPARQS by mailing notice of such
                                exercise, specifying the Call Date on which the
                                Issuer shall effect such exchange, by first
                                class mail,

                                      A-4
<PAGE>

                                postage prepaid, to the holder's last address
                                as it shall appear upon the registry books,
                                (ii) to the Trustee by telephone or facsimile
                                confirmed by mailing such notice to the Trustee
                                by first class mail, postage prepaid, at its
                                New York office and (iii) to the Depositary in
                                accordance with the applicable procedures set
                                forth in the Blanket Letter of Representations
                                prepared by the Issuer. Any notice which is
                                mailed in the manner herein provided shall be
                                conclusively presumed to have been duly given,
                                whether or not the holder of this SPARQS
                                receives the notice. Failure to give notice by
                                mail or any defect in the notice to the holder
                                of any SPARQS shall not affect the validity of
                                the proceedings for the exercise of the Morgan
                                Stanley Call Right with respect to any other
                                SPARQS.

                                The notice of the Issuer's exercise of the
                                Morgan Stanley Call Right shall specify (i) the
                                Call Date, (ii) the Call Price payable per
                                SPARQS, (iii) the amount of accrued but unpaid
                                interest payable per SPARQS on the Call Date,
                                (iv) whether any subsequently scheduled
                                Interest Payment Date shall no longer be an
                                Interest Payment Date as a result of the
                                exercise of the Morgan Stanley Call Right, (v)
                                the place or places of payment of such Call
                                Price, (vi) that such delivery will be made
                                upon presentation and surrender of this SPARQS,
                                (vii) that such exchange is pursuant to the
                                Morgan Stanley Call Right and (viii) if
                                applicable, the date to which the Maturity Date
                                has been extended due to a Market Disruption
                                Event as described under "Maturity Date" above.

                                The notice of the Issuer's exercise of the
                                Morgan Stanley Call Right shall be given by the
                                Issuer or, at the Issuer's request, by the
                                Trustee in the name and at the expense of the
                                Issuer.

                                If this SPARQS is so called for mandatory
                                exchange by the Issuer, then the cash Call
                                Price and any accrued but unpaid interest on
                                this SPARQS to be delivered to the holder of
                                this SPARQS shall be delivered on the Call Date
                                fixed by the Issuer and set forth in its notice
                                of its exercise of the Morgan Stanley Call
                                Right, upon delivery of this SPARQS to the
                                Trustee. The Issuer shall, or shall cause the
                                Calculation Agent to, deliver such cash to the
                                Trustee for delivery to the holder of this
                                SPARQS.

                                      A-5
<PAGE>

                                If this SPARQS is not surrendered for exchange
                                on the Call Date, it shall be deemed to be no
                                longer Outstanding under, and as defined in,
                                the Senior Indenture after the Call Date,
                                except with respect to the holder's right to
                                receive cash due in connection with the Morgan
                                Stanley Call Right.

Morgan Stanley Notice Date..... The scheduled Trading Day on which the Issuer
                                issues its notice of mandatory exchange, which
                                must be at least 10 but not more than 30 days
                                prior to the Call Date.

Final Call Notice Date......... July 5, 2005; provided that if July 5, 2005 is
                                not a Trading Day or if a Market Disruption
                                Event occurs on such day, the Final Call Notice
                                Date will be the immediately succeeding Trading
                                Day on which no Market Disruption Event occurs.

Call Date...................... The day specified in the Issuer's notice of
                                mandatory exchange, on which the Issuer shall
                                deliver cash to the holder of this SPARQS, for
                                mandatory exchange, which day may be any
                                scheduled Trading Day on or after December   ,
                                2004 or the Maturity Date (including the
                                Maturity Date as it may be extended and
                                regardless of whether the Maturity Date is a
                                scheduled Trading Day). See "Maturity Date"
                                above.

Call Price..................... The Call Price with respect to any Call Date is
                                an amount of cash per each $         principal
                                amount of this SPARQS, as calculated by the
                                Calculation Agent, such that the sum of the
                                present values of all cash flows on each
                                $         principal amount of this SPARQS to
                                and including the Call Date (i.e., the Call
                                Price and all of the interest payments,
                                including accrued and unpaid interest payable
                                on the Call Date), discounted to the Original
                                Issue Date from the applicable payment date at
                                the Yield to Call rate of     % per annum
                                computed on the basis of a 360-day year of
                                twelve 30-day months, equals the Issue Price,
                                as determined by the Calculation Agent.

Exchange at Maturity........... At maturity, subject to a prior call of this
                                SPARQS for cash in an amount equal to the Call
                                Price by the Issuer as described under "Morgan
                                Stanley Call Right" above or any acceleration
                                of the SPARQS, upon delivery of this SPARQS to
                                the Trustee, each $         principal amount of
                                this SPARQS shall be applied by the Issuer as
                                payment for a number of shares of the common
                                stock of Avaya

                                      A-6
<PAGE>

                                Inc. ("Avaya Stock") at the Exchange Ratio, and
                                the Issuer shall deliver with respect to each
                                $         principal amount of this SPARQS an
                                amount of Avaya Stock equal to the Exchange
                                Ratio.

                                The amount of Avaya Stock to be delivered at
                                maturity shall be subject to any applicable
                                adjustments (i) to the Exchange Ratio
                                (including, as applicable, any New Stock
                                Exchange Ratio or any Basket Stock Exchange
                                Ratio, each as defined in paragraph 5 under
                                "Antidilution Adjustments" below) and (ii) in
                                the Exchange Property, as defined in paragraph
                                5 under "Antidilution Adjustments" below, to be
                                delivered instead of, or in addition to, such
                                Avaya Stock as a result of any corporate event
                                described under "Antidilution Adjustments"
                                below, in each case, required to be made
                                through the close of business on the third
                                Trading Day prior to maturity.

                                The Issuer shall, or shall cause the
                                Calculation Agent to, provide written notice to
                                the Trustee at its New York Office and to the
                                Depositary, on which notice the Trustee and
                                Depositary may conclusively rely, on or prior
                                to 10:30 a.m. on the Trading Day immediately
                                prior to maturity of this SPARQS (but if such
                                Trading Day is not a Business Day, prior to the
                                close of business on the Business Day preceding
                                maturity of this SPARQS), of the amount of
                                Avaya Stock (or the amount of Exchange
                                Property) or cash to be delivered with respect
                                to each $         principal amount of this
                                SPARQS and of the amount of any cash to be paid
                                in lieu of any fractional share of Avaya Stock
                                (or of any other securities included in
                                Exchange Property, if applicable); provided
                                that if the maturity date of this SPARQS is
                                accelerated (x) because of a Price Event
                                Acceleration (as described under "Price Event
                                Acceleration" below) or (y) because of an Event
                                of Default Acceleration (as defined under
                                "Alternate Exchange Calculation in Case of an
                                Event of Default" below), the Issuer shall give
                                notice of such acceleration as promptly as
                                possible, and in no case later than (A) in the
                                case of an Event of Default Acceleration, two
                                Trading Days following such deemed maturity
                                date or (B) in the case of a Price Event
                                Acceleration, 10:30 a.m. on the Trading Day
                                immediately prior to the date of acceleration
                                (as defined under "Price Event Acceleration"
                                below), (i) to the holder of this SPARQS by
                                mailing notice of such acceleration by first
                                class mail, postage prepaid, to the

                                      A-7
<PAGE>

                                holder's last address as it shall appear upon
                                the registry books, (ii) to the Trustee by
                                telephone or facsimile confirmed by mailing
                                such notice to the Trustee by first class mail,
                                postage prepaid, at its New York office and
                                (iii) to the Depositary by telephone or
                                facsimile confirmed by mailing such notice to
                                the Depositary by first class mail, postage
                                prepaid. Any notice that is mailed in the
                                manner herein provided shall be conclusively
                                presumed to have been duly given, whether or
                                not the holder of this SPARQS receives the
                                notice. If the maturity of this SPARQS is
                                accelerated, no interest on the amounts payable
                                with respect to this SPARQS shall accrue for
                                the period from and after such accelerated
                                maturity date; provided that the Issuer has
                                deposited with the Trustee the Avaya Stock, the
                                Exchange Property or any cash due with respect
                                to such acceleration by such accelerated
                                maturity date.

                                The Issuer shall, or shall cause the
                                Calculation Agent to, deliver any such shares
                                of Avaya Stock (or any Exchange Property) and
                                cash in respect of interest and any fractional
                                share of Avaya Stock (or any Exchange Property)
                                and cash otherwise due upon any acceleration
                                described above to the Trustee for delivery to
                                the holder of this Note. References to payment
                                "per SPARQS" refer to each $         principal
                                amount of this SPARQS.

                                If this SPARQS is not surrendered for exchange
                                at maturity, it shall be deemed to be no longer
                                Outstanding under, and as defined in, the
                                Senior Indenture, except with respect to the
                                holder's right to receive the Avaya Stock (and,
                                if applicable, any Exchange Property) and any
                                cash in respect of interest and any fractional
                                share of Avaya Stock (or any Exchange Property)
                                and any other cash due at maturity as described
                                in the preceding paragraph under this heading.

Price Event Acceleration....... If on any two consecutive Trading Days during
                                the period prior to and ending on the third
                                Business Day immediately preceding the Maturity
                                Date, the product of the Closing Price per
                                share of Avaya Stock and the Exchange Ratio is
                                less than $2.00, the Maturity Date of this
                                SPARQS shall be deemed to be accelerated to the
                                third Business Day immediately following such
                                second Trading Day (the "date of
                                acceleration"). Upon such acceleration, the
                                holder of each $       principal amount of

                                      A-8
<PAGE>

                                this SPARQS shall receive per SPARQS on the
                                date of acceleration:

                                   (i) a number of shares of Avaya Stock at the
                                   then current Exchange Ratio;

                                   (ii) accrued but unpaid interest on each
                                   $         principal amount of this SPARQS to
                                   but excluding the date of acceleration; and

                                   (iii) an amount of cash as determined by the
                                   Calculation Agent equal to the sum of the
                                   present values of the remaining scheduled
                                   payments of interest on each $
                                   principal amount of this SPARQS (excluding
                                   the amounts included in clause (ii) above)
                                   discounted to the date of acceleration. The
                                   present value of each remaining scheduled
                                   payment will be based on the comparable
                                   yield that the Issuer would pay on a
                                   non-interest bearing, senior unsecured debt
                                   obligation of the Issuer having a maturity
                                   equal to the term of each such remaining
                                   scheduled payment, as determined by the
                                   Calculation Agent.

No Fractional Shares..........  Upon delivery of this SPARQS to the Trustee at
                                maturity, the Issuer shall deliver the
                                aggregate number of shares of Avaya Stock due
                                with respect to this SPARQS, as described
                                above, but the Issuer shall pay cash in lieu of
                                delivering any fractional share of Avaya Stock
                                in an amount equal to the corresponding
                                fractional Closing Price of such fraction of a
                                share of Avaya Stock as determined by the
                                Calculation Agent as of the second scheduled
                                Trading Day prior to maturity of this SPARQS.

Exchange Ratio.................                   , subject to adjustment for
                                corporate events relating to Avaya Inc.
                                ("Avaya") described under "Antidilution
                                Adjustments" below.

Closing Price.................  The Closing Price for one share of Avaya Stock
                                (or one unit of any other security for which a
                                Closing Price must be determined) on any
                                Trading Day (as defined below) means:

                                o if Avaya Stock (or any such other security)
                                is listed or admitted to trading on a national
                                securities exchange, the last reported sale
                                price, regular way, of the principal trading
                                session on such day on the principal United
                                States

                                      A-9
<PAGE>

                                securities exchange registered under the
                                Securities Exchange Act of 1934, as amended
                                (the "Exchange Act"), on which Avaya Stock (or
                                any such other security) is listed or admitted
                                to trading,

                                o if Avaya Stock (or any such other security)
                                is a security of the Nasdaq National Market
                                (and provided that the Nasdaq National Market
                                is not then a national securities exchange),
                                the Nasdaq official closing price published by
                                The Nasdaq Stock Market, Inc. on such day, or

                                o if Avaya Stock (or any such other security)
                                is not listed or admitted to trading on any
                                national securities exchange or a security of
                                the Nasdaq National Market but is included in
                                the OTC Bulletin Board Service (the "OTC
                                Bulletin Board") operated by the National
                                Association of Securities Dealers, Inc. (the
                                "NASD"), the last reported sale price of the
                                principal trading session on the OTC Bulletin
                                Board on such day.

                                If Avaya Stock (or any such other security) is
                                listed or admitted to trading on any national
                                securities exchange or is a security of the
                                Nasdaq National Market but the last reported
                                sale price or Nasdaq official closing price, as
                                applicable, is not available pursuant to the
                                preceding sentence, then the Closing Price for
                                one share of Avaya Stock (or one unit of any
                                such other security) on any Trading Day will
                                mean the last reported sale price of the
                                principal trading session on the
                                over-the-counter market as reported on the
                                Nasdaq National Market or the OTC Bulletin
                                Board on such day. If, because of a Market
                                Disruption Event (as defined below) or
                                otherwise, the last reported sale price or
                                Nasdaq official closing price, as applicable,
                                for Avaya Stock (or any such other security) is
                                not available pursuant to either of the two
                                preceding sentences, then the Closing Price for
                                any Trading Day will be the mean, as determined
                                by the Calculation Agent, of the bid prices for
                                Avaya Stock (or any such other security)
                                obtained from as many recognized dealers in
                                such security, but not exceeding three, as will
                                make such bid prices available to the
                                Calculation Agent. Bids of MS & Co. or any of
                                its affiliates may be included in the
                                calculation of such mean, but only to the
                                extent that any such bid is the highest of the
                                bids obtained. The term "security of the Nasdaq
                                National Market" will include a

                                      A-10
<PAGE>

                                security included in any successor to such
                                system, and the term OTC Bulletin Board Service
                                will include any successor service thereto.

Trading Day.................... A day, as determined by the Calculation Agent,
                                on which trading is generally conducted on the
                                New York Stock Exchange, Inc. ("NYSE"), the
                                American Stock Exchange LLC, the Nasdaq
                                National Market, the Chicago Mercantile
                                Exchange and the Chicago Board of Options
                                Exchange and in the over-the-counter market for
                                equity securities in the United States.

Calculation Agent.............. MS & Co. and its successors.

                                All calculations with respect to the Exchange
                                Ratio and Call Price for the SPARQS shall be
                                made by the Calculation Agent and shall be
                                rounded to the nearest one hundred-thousandth,
                                with five one-millionths rounded upward (e.g.,
                                .876545 would be rounded to .87655); all dollar
                                amounts related to the Call Price resulting
                                from such calculations shall be rounded to the
                                nearest ten-thousandth, with five one
                                hundred-thousandths rounded upward (e.g.,
                                .76545 would be rounded to .7655); and all
                                dollar amounts paid with respect to the Call
                                Price on the aggregate number of SPARQS shall
                                be rounded to the nearest cent, with one-half
                                cent rounded upward.

                                All determinations made by the Calculation
                                Agent shall be at the sole discretion of the
                                Calculation Agent and shall, in the absence of
                                manifest error, be conclusive for all purposes
                                and binding on the holder of this SPARQS, the
                                Trustee and the Issuer.

Antidilution Adjustments....... The Exchange Ratio shall be adjusted as
                                follows:

                                     1. If Avaya Stock is subject to a stock
                                split or reverse stock split, then once such
                                split has become effective, the Exchange Ratio
                                shall be adjusted to equal the product of the
                                prior Exchange Ratio and the number of shares
                                issued in such stock split or reverse stock
                                split with respect to one share of Avaya Stock.

                                     2. If Avaya Stock is subject (i) to a
                                stock dividend (issuance of additional shares
                                of Avaya Stock) that is given ratably to all
                                holders of shares of Avaya Stock or (ii) to a
                                distribution of Avaya Stock as a result of the

                                      A-11
<PAGE>

                                triggering of any provision of the corporate
                                charter of Avaya Airways, then once the
                                dividend has become effective and Avaya Stock
                                is trading ex-dividend, the Exchange Ratio
                                shall be adjusted so that the new Exchange
                                Ratio shall equal the prior Exchange Ratio plus
                                the product of (i) the number of shares issued
                                with respect to one share of Avaya Stock and
                                (ii) the prior Exchange Ratio.

                                     3. If Avaya issues rights or warrants to
                                all holders of Avaya Stock to subscribe for or
                                purchase Avaya Stock at an exercise price per
                                share less than the Closing Price of Avaya
                                Stock on both (i) the date the exercise price
                                of such rights or warrants is determined and
                                (ii) the expiration date of such rights or
                                warrants, and if the expiration date of such
                                rights or warrants precedes the maturity of
                                this SPARQS, then the Exchange Ratio shall be
                                adjusted to equal the product of the prior
                                Exchange Ratio and a fraction, the numerator of
                                which shall be the number of shares of Avaya
                                Stock outstanding immediately prior to the
                                issuance of such rights or warrants plus the
                                number of additional shares of Avaya Stock
                                offered for subscription or purchase pursuant
                                to such rights or warrants and the denominator
                                of which shall be the number of shares of Avaya
                                Stock outstanding immediately prior to the
                                issuance of such rights or warrants plus the
                                number of additional shares of Avaya Stock
                                which the aggregate offering price of the total
                                number of shares of Avaya Stock so offered for
                                subscription or purchase pursuant to such
                                rights or warrants would purchase at the
                                Closing Price on the expiration date of such
                                rights or warrants, which shall be determined
                                by multiplying such total number of shares
                                offered by the exercise price of such rights or
                                warrants and dividing the product so obtained
                                by such Closing Price.

                                     4. There shall be no adjustments to the
                                Exchange Ratio to reflect cash dividends or
                                other distributions paid with respect to Avaya
                                Stock other than distributions described in
                                paragraph 2, paragraph 3 and clauses (i), (iv)
                                and (v) of the first sentence of paragraph 5
                                and Extraordinary Dividends. "Extraordinary
                                Dividend" means each of (a) the full amount per
                                share of Avaya Stock of any cash dividend or
                                special dividend or distribution that is
                                identified by Avaya as an extraordinary

                                      A-12
<PAGE>

                                or special dividend or distribution, (b) the
                                excess of any cash dividend or other cash
                                distribution (that is not otherwise identified
                                by Avaya as an extraordinary or special
                                dividend or distribution) distributed per share
                                of Avaya Stock over the immediately preceding
                                cash dividend or other cash distribution, if
                                any, per share of Avaya Stock that did not
                                include an Extraordinary Dividend (as adjusted
                                for any subsequent corporate event requiring an
                                adjustment hereunder, such as a stock split or
                                reverse stock split) if such excess portion of
                                the dividend or distribution is more than 5% of
                                the Closing Price of Avaya Stock on the Trading
                                Day preceding the "ex-dividend date" (that is,
                                the day on and after which transactions in
                                Avaya Stock on an organized securities exchange
                                or trading system no longer carry the right to
                                receive that cash dividend or other cash
                                distribution) for the payment of such cash
                                dividend or other cash distribution (such
                                Closing Price, the "Base Closing Price") and
                                (c) the full cash value of any non-cash
                                dividend or distribution per share of Avaya
                                Stock (excluding Marketable Securities, as
                                defined in paragraph 5 below). Subject to the
                                following sentence, if any cash dividend or
                                distribution of such other property with
                                respect to Avaya Stock includes an
                                Extraordinary Dividend, the Exchange Ratio with
                                respect to Avaya Stock shall be adjusted on the
                                ex-dividend date so that the new Exchange Ratio
                                shall equal the product of (i) the prior
                                Exchange Ratio and (ii) a fraction, the
                                numerator of which is the Base Closing Price,
                                and the denominator of which is the amount by
                                which the Base Closing Price exceeds the
                                Extraordinary Dividend. If any Extraordinary
                                Dividend is at least 35% of the Base Closing
                                Price, then, instead of adjusting the Exchange
                                Ratio, the amount payable upon exchange at
                                maturity shall be determined as described in
                                paragraph 5 below, and the Extraordinary
                                Dividend shall be allocated to Reference Basket
                                Stocks in accordance with the procedures for a
                                Reference Basket Event as described in clause
                                (c)(ii) of paragraph 5 below. The value of the
                                non-cash component of an Extraordinary Dividend
                                shall be determined on the ex-dividend date for
                                such distribution by the Calculation Agent,
                                whose determination shall be conclusive in the
                                absence of manifest error. A distribution on
                                Avaya Stock described in clause (i), (iv) or
                                (v) of the first sentence of paragraph 5 below
                                shall cause an adjustment to the Exchange Ratio

                                      A-13
<PAGE>

                                pursuant only to clause (i), (iv) or (v) of the
                                first sentence of paragraph 5, as applicable.

                                     5. Any of the following shall constitute a
                                Reorganization Event: (i) Avaya Stock is
                                reclassified or changed, including, without
                                limitation, as a result of the issuance of any
                                tracking stock by Avaya, (ii) Avaya has been
                                subject to any merger, combination or
                                consolidation and is not the surviving entity,
                                (iii) Avaya completes a statutory exchange of
                                securities with another corporation (other than
                                pursuant to clause (ii) above), (iv) Avaya is
                                liquidated, (v) Avaya issues to all of its
                                shareholders equity securities of an issuer
                                other than Avaya (other than in a transaction
                                described in clause (ii), (iii) or (iv) above)
                                (a "spinoff stock") or (vi) Avaya Stock is the
                                subject of a tender or exchange offer or going
                                private transaction on all of the outstanding
                                shares. If any Reorganization Event occurs, in
                                each case as a result of which the holders of
                                Avaya Stock receive any equity security listed
                                on a national securities exchange or traded on
                                The Nasdaq National Market (a "Marketable
                                Security"), other securities or other property,
                                assets or cash (collectively "Exchange
                                Property"), the amount payable upon exchange at
                                maturity with respect to each $
                                principal amount of this SPARQS following the
                                effective date for such Reorganization Event
                                (or, if applicable, in the case of spinoff
                                stock, the ex-dividend date for the
                                distribution of such spinoff stock) shall be
                                determined in accordance with the following:

                                (a) if Avaya Stock continues to be outstanding,
                                Avaya Stock (if applicable, as reclassified
                                upon the issuance of any tracking stock) at the
                                Exchange Ratio in effect on the third Trading
                                Day prior to the scheduled Maturity Date
                                (taking into account any adjustments for any
                                distributions described under clause (c)(i)
                                below); and

                                (b) for each Marketable Security received in
                                such Reorganization Event (each a "New Stock"),
                                including the issuance of any tracking stock or
                                spinoff stock or the receipt of any stock
                                received in exchange for Avaya Stock where
                                Avaya is not the surviving entity, the number
                                of shares of the New Stock received with
                                respect to one share of Avaya Stock multiplied
                                by the Exchange Ratio for Avaya Stock on the
                                Trading Day immediately prior to the effective
                                date of the Reorganization Event (the "New
                                Stock Exchange Ratio"), as adjusted to the
                                third Trading

                                      A-14
<PAGE>

                                Day prior to the scheduled Maturity Date
                                (taking into account any adjustments for
                                distributions described under clause (c)(i)
                                below); and

                                (c) for any cash and any other property or
                                securities other than Marketable Securities
                                received in such Reorganization Event (the
                                "Non-Stock Exchange Property"),

                                   (i) if the combined value of the amount of
                                   Non-Stock Exchange Property received per
                                   share of Avaya Stock, as determined by the
                                   Calculation Agent in its sole discretion on
                                   the effective date of such Reorganization
                                   Event (the "Non-Stock Exchange Property
                                   Value"), by holders of Avaya Stock is less
                                   than 25% of the Closing Price of Avaya Stock
                                   on the Trading Day immediately prior to the
                                   effective date of such Reorganization Event,
                                   a number of shares of Avaya Stock, if
                                   applicable, and of any New Stock received in
                                   connection with such Reorganization Event,
                                   if applicable, in proportion to the relative
                                   Closing Prices of Avaya Stock and any such
                                   New Stock, and with an aggregate value equal
                                   to the Non- Stock Exchange Property Value
                                   multiplied by the Exchange Ratio in effect
                                   for Avaya Stock on the Trading Day
                                   immediately prior to the effective date of
                                   such Reorganization Event, based on such
                                   Closing Prices, in each case as determined
                                   by the Calculation Agent in its sole
                                   discretion on the effective date of such
                                   Reorganization Event; and the number of such
                                   shares of Avaya Stock or any New Stock
                                   determined in accordance with this clause
                                   (c)(i) shall be added at the time of such
                                   adjustment to the Exchange Ratio in
                                   subparagraph (a) above and/or the New Stock
                                   Exchange Ratio in subparagraph (b) above, as
                                   applicable, or

                                   (ii) if the Non-Stock Exchange Property
                                   Value is equal to or exceeds 25% of the
                                   Closing Price of Avaya Stock on the Trading
                                   Day immediately prior to the effective date
                                   relating to such Reorganization Event or, if
                                   Avaya Stock is surrendered exclusively for
                                   Non-Stock Exchange Property (in each case, a
                                   "Reference Basket Event"), an initially
                                   equal-dollar weighted basket of three
                                   Reference Basket Stocks (as defined below)
                                   with an aggregate value on the

                                      A-15
<PAGE>

                                   effective date of such Reorganization Event
                                   equal to the Non-Stock Exchange Property
                                   Value multiplied by the Exchange Ratio in
                                   effect for Avaya Stock on the Trading Day
                                   immediately prior to the effective date of
                                   such Reorganization Event. The "Reference
                                   Basket Stocks" shall be the three stocks
                                   with the largest market capitalization among
                                   the stocks that then comprise the S&P 500
                                   Index (or, if publication of such index is
                                   discontinued, any successor or substitute
                                   index selected by the Calculation Agent in
                                   its sole discretion) with the same primary
                                   Standard Industrial Classification Code
                                   ("SIC Code") as Avaya; provided, however,
                                   that a Reference Basket Stock shall not
                                   include any stock that is subject to a
                                   trading restriction under the trading
                                   restriction policies of Morgan Stanley or
                                   any of its affiliates that would materially
                                   limit the ability of Morgan Stanley or any
                                   of its affiliates to hedge the SPARQS with
                                   respect to such stock (a "Hedging
                                   Restriction"); provided further that if
                                   three Reference Basket Stocks cannot be
                                   identified from the S&P 500 Index by primary
                                   SIC Code for which a Hedging Restriction
                                   does not exist, the remaining Reference
                                   Basket Stock(s) shall be selected by the
                                   Calculation Agent from the largest market
                                   capitalization stock(s) within the same
                                   Division and Major Group classification (as
                                   defined by the Office of Management and
                                   Budget) as the primary SIC Code for Avaya.
                                   Each Reference Basket Stock shall be
                                   assigned a Basket Stock Exchange Ratio equal
                                   to the number of shares of such Reference
                                   Basket Stock with a Closing Price on the
                                   effective date of such Reorganization Event
                                   equal to the product of (a) the Non-Stock
                                   Exchange Property Value, (b) the Exchange
                                   Ratio in effect for Avaya Stock on the
                                   Trading Day immediately prior to the
                                   effective date of such Reorganization Event
                                   and (c) 0.3333333.

                                Following the allocation of any Extraordinary
                                Dividend to Reference Basket Stocks pursuant to
                                paragraph 4 above or any Reorganization Event
                                described in this paragraph 5, the amount
                                payable upon exchange at maturity with respect
                                to each $         principal amount of this
                                SPARQS shall be the sum of:

                                      A-16
<PAGE>

                                   (x) if applicable, Avaya Stock at the
                                       Exchange Ratio then in effect; and

                                   (y) if applicable, for each New Stock, such
                                       New Stock at the New Stock Exchange Ratio
                                       then in effect for such New Stock; and

                                   (z) if applicable, for each Reference Basket
                                Stock, such Reference Basket Stock at the
                                Basket Stock Exchange Ratio then in effect for
                                such Reference Basket Stock.

                                In each case, the applicable Exchange Ratio
                                (including for this purpose, any New Stock
                                Exchange Ratio or Basket Stock Exchange Ratio)
                                shall be determined by the Calculation Agent on
                                the third Trading Day prior to the scheduled
                                Maturity Date.

                                For purposes of paragraph 5 above, in the case
                                of a consummated tender or exchange offer or
                                going-private transaction involving Exchange
                                Property of a particular type, Exchange
                                Property shall be deemed to include the amount
                                of cash or other property paid by the offeror
                                in the tender or exchange offer with respect to
                                such Exchange Property (in an amount determined
                                on the basis of the rate of exchange in such
                                tender or exchange offer or going-private
                                transaction). In the event of a tender or
                                exchange offer or a going-private transaction
                                with respect to Exchange Property in which an
                                offeree may elect to receive cash or other
                                property, Exchange Property shall be deemed to
                                include the kind and amount of cash and other
                                property received by offerees who elect to
                                receive cash.

                                Following the occurrence of any Reorganization
                                Event referred to in paragraphs 4 or 5 above,
                                (i) references to "Avaya Stock" under "No
                                Fractional Shares," "Closing Price" and "Market
                                Disruption Event" shall be deemed to also refer
                                to any New Stock or Reference Basket Stock, and
                                (ii) all other references in this SPARQS to
                                "Avaya Stock" shall be deemed to refer to the
                                Exchange Property into which this SPARQS is
                                thereafter exchangeable and references to a
                                "share" or "shares" of Avaya Stock shall be
                                deemed to refer to the applicable unit or units
                                of such Exchange Property, including any New
                                Stock or Reference Basket Stock, unless the
                                context otherwise requires. The New Stock
                                Exchange Ratio(s) or Basket

                                      A-17
<PAGE>

                                Stock Exchange Ratios resulting from any
                                Reorganization Event described in paragraph 5
                                above or similar adjustment under paragraph 4
                                above shall be subject to the adjustments set
                                forth in paragraphs 1 through 5 hereof.

                                If a Reference Basket Event occurs, the Issuer
                                shall, or shall cause the Calculation Agent to,
                                provide written notice to the Trustee at its
                                New York office, on which notice the Trustee
                                may conclusively rely, and to DTC of the
                                occurrence of such Reference Basket Event and
                                of the three Reference Basket Stocks selected
                                as promptly as possible and in no event later
                                than five Business Days after the date of the
                                Reference Basket Event.

                                No adjustment to any Exchange Ratio (including
                                for this purpose, any New Stock Exchange Ratio
                                or Basket Stock Exchange Ratio) shall be
                                required unless such adjustment would require a
                                change of at least 0.1% in the Exchange Ratio
                                then in effect. The Exchange Ratio resulting
                                from any of the adjustments specified above
                                will be rounded to the nearest one
                                hundred-thousandth, with five one-millionths
                                rounded upward. Adjustments to the Exchange
                                Ratios will be made up to the close of business
                                on the third Trading Day prior to the Maturity
                                Date.

                                No adjustments to the Exchange Ratio or method
                                of calculating the Exchange Ratio shall be made
                                other than those specified above.

                                The Calculation Agent shall be solely
                                responsible for the determination and
                                calculation of any adjustments to the Exchange
                                Ratio, any New Stock Exchange Ratio or Basket
                                Stock Exchange Ratio or method of calculating
                                the Exchange Property Value and of any related
                                determinations and calculations with respect to
                                any distributions of stock, other securities or
                                other property or assets (including cash) in
                                connection with any corporate event described
                                in paragraphs 1 through 5 above, and its
                                determinations and calculations with respect
                                thereto shall be conclusive in the absence of
                                manifest error.

                                The Calculation Agent shall provide information
                                as to any adjustments to the Exchange Ratio or
                                to the method of calculating the amount payable
                                upon exchange at maturity of the SPARQS made
                                pursuant to paragraphs 1 through

                                      A-18
<PAGE>

                                5 above upon written request by any holder of
                                this SPARQS.

Market Disruption Event........ "Market Disruption Event" means, with respect
                                to Avaya Stock:

                                   (i) a suspension, absence or material
                                   limitation of trading of Avaya Stock on the
                                   primary market for Avaya Stock for more than
                                   two hours of trading or during the one-half
                                   hour period preceding the close of the
                                   principal trading session in such market; or
                                   a breakdown or failure in the price and
                                   trade reporting systems of the primary
                                   market for Avaya Stock as a result of which
                                   the reported trading prices for Avaya Stock
                                   during the last one-half hour preceding the
                                   close of the principal trading session in
                                   such market are materially inaccurate; or
                                   the suspension, absence or material
                                   limitation of trading on the primary market
                                   for trading in options contracts related to
                                   Avaya Stock, if available, during the
                                   one-half hour period preceding the close of
                                   the principal trading session in the
                                   applicable market, in each case as
                                   determined by the Calculation Agent in its
                                   sole discretion; and

                                   (ii) a determination by the Calculation
                                   Agent in its sole discretion that any event
                                   described in clause (i) above materially
                                   interfered with the ability of the Issuer or
                                   any of its affiliates to unwind or adjust
                                   all or a material portion of the hedge with
                                   respect to the SPARQS due July 15, 2005,
                                   Mandatorily Exchangeable for Shares of
                                   Common Stock of Avaya.

                                For purposes of determining whether a Market
                                Disruption Event has occurred: (i) a limitation
                                on the hours or number of days of trading shall
                                not constitute a Market Disruption Event if it
                                results from an announced change in the regular
                                business hours of the relevant exchange, (ii) a
                                decision to permanently discontinue trading in
                                the relevant options contract shall not
                                constitute a Market Disruption Event, (iii)
                                limitations pursuant to NYSE Rule 80A (or any
                                applicable rule or regulation enacted or
                                promulgated by the NYSE, any other
                                self-regulatory organization or the Securities
                                and Exchange Commission of scope similar to
                                NYSE Rule 80A as determined by the Calculation
                                Agent) on trading during significant market

                                      A-19
<PAGE>

                                fluctuations shall constitute a suspension,
                                absence or material limitation of trading, (iv)
                                a suspension of trading in options contracts on
                                Avaya Stock by the primary securities market
                                trading in such options, if available, by
                                reason of (a) a price change exceeding limits
                                set by such securities exchange or market, (b)
                                an imbalance of orders relating to such
                                contracts or (c) a disparity in bid and ask
                                quotes relating to such contracts shall
                                constitute a suspension, absence or material
                                limitation of trading in options contracts
                                related to Avaya Stock and (v) a suspension,
                                absence or material limitation of trading on
                                the primary securities market on which options
                                contracts related to Avaya Stock are traded
                                shall not include any time when such securities
                                market is itself closed for trading under
                                ordinary circumstances.

Alternate Exchange
Calculation in Case of an
Event of Default............... In case an event of default with respect to the
                                SPARQS shall have occurred and be continuing,
                                the amount declared due and payable per each
                                $         principal amount of this SPARQS upon
                                any acceleration of this SPARQS (an "Event of
                                Default Acceleration") shall be determined by
                                the Calculation Agent and shall be an amount in
                                cash equal to the lesser of (i) the product of
                                (x) the Closing Price of Avaya Stock (and/or
                                the value of any Exchange Property) as of the
                                date of such acceleration and (y) the then
                                current Exchange Ratio and (ii) the Call Price
                                calculated as though the date of acceleration
                                were the Call Date (but in no event less than
                                the Call Price for the first Call Date), in
                                each case plus accrued but unpaid interest to
                                but excluding the date of acceleration;
                                provided that if the Issuer has called the
                                SPARQS in accordance with the Morgan Stanley
                                Call Right, the amount declared due and payable
                                upon any such acceleration shall be an amount
                                in cash for each $         principal amount of
                                this SPARQS equal to the Call Price for the
                                Call Date specified in the Issuer's notice of
                                mandatory exchange, plus accrued but unpaid
                                interest to but excluding the date of
                                acceleration.

Treatment of SPARQS for
United States Federal
Income Tax Purposes............ The Issuer, by its sale of this SPARQS, and the
                                holder of this SPARQS (and any successor holder
                                of, or holder of a beneficial interest in, this
                                SPARQS), by its respective purchase hereof,
                                agree (in the absence of an administrative
                                determination or judicial ruling to the

                                      A-20
<PAGE>

                                contrary) to characterize each $
                                principal amount of this SPARQS for all tax
                                purposes as an investment unit consisting of
                                (A) a terminable contract (the "Terminable
                                Forward Contract") that (i) requires the holder
                                of this SPARQS (subject to the Morgan Stanley
                                Call Right) to purchase, and the Issuer to
                                sell, for an amount equal to $         (the
                                "Forward Price"), Avaya Stock at maturity and
                                (ii) allows the Issuer, upon exercise of the
                                Morgan Stanley Call Right, to terminate the
                                Terminable Forward Contract by returning to
                                such holder the Deposit (as defined below) and
                                paying to such holder an amount of cash equal
                                to the difference between the Deposit and the
                                Call Price and (B) a deposit with the Issuer of
                                a fixed amount of cash, equal to the Issue
                                Price per each $         principal amount of
                                this SPARQS, to secure the holder's obligation
                                to purchase Avaya Stock pursuant to the
                                Terminable Forward Contract (the "Deposit"),
                                which Deposit bears a quarterly compounded
                                yield of     % per annum.

                                      A-21
<PAGE>

     Morgan Stanley, a Delaware corporation (together with its successors and
assigns, the "Issuer"), for value received, hereby promises to pay to CEDE &
CO., or registered assignees, the amount of Avaya Stock (or other Exchange
Property), as determined in accordance with the provisions set forth under
"Exchange at Maturity" above, due with respect to the principal sum of U.S.
$             (UNITED STATES DOLLARS                         ) on the Maturity
Date specified above (except to the extent redeemed or repaid prior to
maturity) and to pay interest thereon at the Interest Rate per annum specified
above, from and including the Interest Accrual Date specified above until the
principal hereof is paid or duly made available for payment weekly, monthly,
quarterly, semiannually or annually in arrears as specified above as the
Interest Payment Period on each Interest Payment Date (as specified above),
commencing on the Interest Payment Date next succeeding the Interest Accrual
Date specified above, and at maturity (or on any redemption or repayment date);
provided, however, that if the Interest Accrual Date occurs between a Record
Date, as defined below, and the next succeeding Interest Payment Date, interest
payments will commence on the second Interest Payment Date succeeding the
Interest Accrual Date to the registered holder of this Note on the Record Date
with respect to such second Interest Payment Date; and provided, further, that
if this Note is subject to "Annual Interest Payments," interest payments shall
be made annually in arrears and the term "Interest Payment Date" shall be
deemed to mean the first day of March in each year.

     Interest on this Note will accrue from and including the most recent date
to which interest has been paid or duly provided for, or, if no interest has
been paid or duly provided for, from and including the Interest Accrual Date,
until but excluding the date the principal hereof has been paid or duly made
available for payment. The interest so payable, and punctually paid or duly
provided for, on any Interest Payment Date will, subject to certain exceptions
described herein, be paid to the person in whose name this Note (or one or more
predecessor Notes) is registered at the close of business on the date 15
calendar days prior to such Interest Payment Date (whether or not a Business
Day (as defined below)) (each such date, a "Record Date"); provided, however,
that interest payable at maturity (or any redemption or repayment date) will be
payable to the person to whom the principal hereof shall be payable. As used
herein, "Business Day" means any day, other than a Saturday or Sunday, (a) that
is neither a legal holiday nor a day on which banking institutions are
authorized or required by law or regulation to close (x) in The City of New
York or (y) if this Note is denominated in a Specified Currency other than U.S.
dollars, euro or Australian dollars, in the principal financial center of the
country of the Specified Currency, or (z) if this Note is denominated in
Australian dollars, in Sydney and (b) if this Note is denominated in euro, that
is also a day on which the Trans-European Automated Real-time Gross Settlement
Express Transfer System ("TARGET") is operating (a "TARGET Settlement Day").

     Payment of the principal of this Note, any premium and the interest due at
maturity (or any redemption or repayment date), unless this Note is denominated
in a Specified Currency other than U.S. dollars and is to be paid in whole or
in part in such Specified Currency, will be made in immediately available funds
upon surrender of this Note at the office or agency of the Paying Agent, as
defined on the reverse hereof, maintained for that purpose in the Borough of
Manhattan, The City of New York, or at such other paying agency as the Issuer
may determine, in U.S. dollars. U.S. dollar payments of interest, other than
interest due at maturity or on any date of redemption or repayment, will be
made by U.S. dollar check mailed to the address of the person entitled thereto
as such address shall appear in the Note register. A holder of U.S. $10,000,000
(or the equivalent

                                      A-22
<PAGE>

in a Specified Currency) or more in aggregate principal amount of Notes having
the same Interest Payment Date, the interest on which is payable in U.S.
dollars, shall be entitled to receive payments of interest, other than interest
due at maturity or on any date of redemption or repayment, by wire transfer of
immediately available funds if appropriate wire transfer instructions have been
received by the Paying Agent in writing not less than 15 calendar days prior to
the applicable Interest Payment Date.

     If this Note is denominated in a Specified Currency other than U.S.
dollars, and the holder does not elect (in whole or in part) to receive payment
in U.S. dollars pursuant to the next succeeding paragraph, payments of
interest, principal or any premium with regard to this Note will be made by
wire transfer of immediately available funds to an account maintained by the
holder hereof with a bank located outside the United States if appropriate wire
transfer instructions have been received by the Paying Agent in writing, with
respect to payments of interest, on or prior to the fifth Business Day after
the applicable Record Date and, with respect to payments of principal or any
premium, at least ten Business Days prior to the Maturity Date or any
redemption or repayment date, as the case may be; provided that, if payment of
interest, principal or any premium with regard to this Note is payable in euro,
the account must be a euro account in a country for which the euro is the
lawful currency, provided, further, that if such wire transfer instructions are
not received, such payments will be made by check payable in such Specified
Currency mailed to the address of the person entitled thereto as such address
shall appear in the Note register; and provided, further, that payment of the
principal of this Note, any premium and the interest due at maturity (or on any
redemption or repayment date) will be made upon surrender of this Note at the
office or agency referred to in the preceding paragraph.

     If so indicated on the face hereof, the holder of this Note, if
denominated in a Specified Currency other than U.S. dollars, may elect to
receive all or a portion of payments on this Note in U.S. dollars by
transmitting a written request to the Paying Agent, on or prior to the fifth
Business Day after such Record Date or at least ten Business Days prior to the
Maturity Date or any redemption or repayment date, as the case may be. Such
election shall remain in effect unless such request is revoked by written
notice to the Paying Agent as to all or a portion of payments on this Note at
least five Business Days prior to such Record Date, for payments of interest,
or at least ten calendar days prior to the Maturity Date or any redemption or
repayment date, for payments of principal, as the case may be.

     If the holder elects to receive all or a portion of payments of principal
of, premium, if any, and interest on this Note, if denominated in a Specified
Currency other than U.S. dollars, in U.S. dollars, the Exchange Rate Agent (as
defined on the reverse hereof) will convert such payments into U.S. dollars. In
the event of such an election, payment in respect of this Note will be based
upon the exchange rate as determined by the Exchange Rate Agent based on the
highest bid quotation in The City of New York received by such Exchange Rate
Agent at approximately 11:00 a.m., New York City time, on the second Business
Day preceding the applicable payment date from three recognized foreign
exchange dealers (one of which may be the Exchange Rate Agent unless such
Exchange Rate Agent is an affiliate of the Issuer) for the purchase by the
quoting dealer of the Specified Currency for U.S. dollars for settlement on
such payment date in the amount of the Specified Currency payable in the
absence of such an election to such holder and at which the applicable dealer
commits to execute a contract. If such bid quotations are not available, such

                                      A-23
<PAGE>

payment will be made in the Specified Currency. All currency exchange costs
will be borne by the holder of this Note by deductions from such payments.

     Reference is hereby made to the further provisions of this Note set forth
on the reverse hereof, which further provisions shall for all purposes have the
same effect as if set forth at this place.

     Unless the certificate of authentication hereon has been executed by the
Trustee referred to on the reverse hereof by manual signature, this Note shall
not be entitled to any benefit under the Senior Indenture, as defined on the
reverse hereof, or be valid or obligatory for any purpose.

                                      A-24
<PAGE>

     IN WITNESS WHEREOF, the Issuer has caused this Note to be duly executed.

DATED:
                                             MORGAN STANLEY

                                             By:
                                                --------------------------------
                                                Name:
                                                Title:

TRUSTEE'S CERTIFICATE
    OF AUTHENTICATION

This is one of the Notes referred
    to in the within-mentioned
    Senior Indenture.

JPMORGAN CHASE BANK,
    as Trustee

By:
    ---------------------------------------
    Authorized Officer

                                      A-25
<PAGE>

                              REVERSE OF SECURITY

     This Note is one of a duly authorized issue of Senior Global Medium-Term
Notes, Series C, having maturities more than nine months from the date of issue
(the "Notes") of the Issuer. The Notes are issuable under an Amended and
Restated Senior Indenture, dated as of May 1, 1999, between the Issuer and
JPMorgan Chase Bank (formerly known as The Chase Manhattan Bank), as Trustee
(the "Trustee," which term includes any successor trustee under the Senior
Indenture) (as may be amended or supplemented from time to time, the "Senior
Indenture"), to which Senior Indenture and all indentures supplemental thereto
reference is hereby made for a statement of the respective rights, limitations
of rights, duties and immunities of the Issuer, the Trustee and holders of the
Notes and the terms upon which the Notes are, and are to be, authenticated and
delivered. The Issuer has appointed JPMorgan Chase Bank at its corporate trust
office in The City of New York as the paying agent (the "Paying Agent," which
term includes any additional or successor Paying Agent appointed by the Issuer)
with respect to the Notes. The terms of individual Notes may vary with respect
to interest rates, interest rate formulas, issue dates, maturity dates, or
otherwise, all as provided in the Senior Indenture. To the extent not
inconsistent herewith, the terms of the Senior Indenture are hereby
incorporated by reference herein.

     Unless otherwise indicated on the face hereof, this Note will not be
subject to any sinking fund and, unless otherwise provided on the face hereof
in accordance with the provisions of the following two paragraphs, will not be
redeemable or subject to repayment at the option of the holder prior to
maturity.

     If so indicated on the face hereof, this Note may be redeemed in whole or
in part at the option of the Issuer on or after the Initial Redemption Date
specified on the face hereof on the terms set forth on the face hereof,
together with interest accrued and unpaid hereon to the date of redemption. If
this Note is subject to "Annual Redemption Percentage Reduction," the Initial
Redemption Percentage indicated on the face hereof will be reduced on each
anniversary of the Initial Redemption Date by the Annual Redemption Percentage
Reduction specified on the face hereof until the redemption price of this Note
is 100% of the principal amount hereof, together with interest accrued and
unpaid hereon to the date of redemption. Notice of redemption shall be mailed
to the registered holders of the Notes designated for redemption at their
addresses as the same shall appear on the Note register not less than 30 nor
more than 60 calendar days prior to the date fixed for redemption or within the
Redemption Notice Period specified on the face hereof, subject to all the
conditions and provisions of the Senior Indenture. In the event of redemption
of this Note in part only, a new Note or Notes for the amount of the unredeemed
portion hereof shall be issued in the name of the holder hereof upon the
cancellation hereof.

     If so indicated on the face of this Note, this Note will be subject to
repayment at the option of the holder on the Optional Repayment Date or Dates
specified on the face hereof on the terms set forth herein. On any Optional
Repayment Date, this Note will be repayable in whole or in part in increments
of $1,000 or, if this Note is denominated in a Specified Currency other than
U.S. dollars, in increments of 1,000 units of such Specified Currency (provided
that any remaining principal amount hereof shall not be less than the minimum
authorized denomination hereof) at the option of the holder hereof at a price
equal to 100% of the principal amount to be repaid, together with interest
accrued and unpaid hereon to the date of repayment, provided that if this Note
is issued with original

                                      A-26
<PAGE>

issue discount, this Note will be repayable on the applicable Optional
Repayment Date or Dates at the price(s) specified on the face hereof. For this
Note to be repaid at the option of the holder hereof, the Paying Agent must
receive at its corporate trust office in the Borough of Manhattan, The City of
New York, at least 15 but not more than 30 calendar days prior to the date of
repayment, (i) this Note with the form entitled "Option to Elect Repayment"
below duly completed or (ii) a telegram, telex, facsimile transmission or a
letter from a member of a national securities exchange or the National
Association of Securities Dealers, Inc. or a commercial bank or a trust company
in the United States setting forth the name of the holder of this Note, the
principal amount hereof, the certificate number of this Note or a description
of this Note's tenor and terms, the principal amount hereof to be repaid, a
statement that the option to elect repayment is being exercised thereby and a
guarantee that this Note, together with the form entitled "Option to Elect
Repayment" duly completed, will be received by the Paying Agent not later than
the fifth Business Day after the date of such telegram, telex, facsimile
transmission or letter; provided, that such telegram, telex, facsimile
transmission or letter shall only be effective if this Note and form duly
completed are received by the Paying Agent by such fifth Business Day. Exercise
of such repayment option by the holder hereof shall be irrevocable. In the
event of repayment of this Note in part only, a new Note or Notes for the
amount of the unpaid portion hereof shall be issued in the name of the holder
hereof upon the cancellation hereof.

     Interest payments on this Note will include interest accrued to but
excluding the Interest Payment Dates or the Maturity Date (or any earlier
redemption or repayment date), as the case may be. Unless otherwise provided on
the face hereof, interest payments for this Note will be computed and paid on
the basis of a 360-day year of twelve 30-day months.

     In the case where the Interest Payment Date or the Maturity Date (or any
redemption or repayment date) does not fall on a Business Day, payment of
interest, premium, if any, or principal otherwise payable on such date need not
be made on such date, but may be made on the next succeeding Business Day with
the same force and effect as if made on the Interest Payment Date or on the
Maturity Date (or any redemption or repayment date), and no interest on such
payment shall accrue for the period from and after the Interest Payment Date or
the Maturity Date (or any redemption or repayment date) to such next succeeding
Business Day.

     This Note and all the obligations of the Issuer hereunder are direct,
unsecured obligations of the Issuer and rank without preference or priority
among themselves and pari passu with all other existing and future unsecured
and unsubordinated indebtedness of the Issuer, subject to certain statutory
exceptions in the event of liquidation upon insolvency.

     This Note, and any Note or Notes issued upon transfer or exchange hereof,
is issuable only in fully registered form, without coupons, and, if denominated
in U.S. dollars, unless otherwise stated above, is issuable only in
denominations of U.S. $1,000 and any integral multiple of U.S. $1,000 in excess
thereof. If this Note is denominated in a Specified Currency other than U.S.
dollars, then, unless a higher minimum denomination is required by applicable
law, it is issuable only in denominations of the equivalent of U.S. $1,000
(rounded to an integral multiple of 1,000 units of such Specified Currency), or
any amount in excess thereof which is an integral multiple of 1,000 units of
such Specified Currency, as determined by reference to the noon dollar buying
rate in The City of New York for cable transfers of such Specified Currency
published by the Federal

                                      A-27
<PAGE>

Reserve Bank of New York (the "Market Exchange Rate") on the Business Day
immediately preceding the date of issuance.

     The Trustee has been appointed registrar for the Notes, and the Trustee
will maintain at its office in The City of New York a register for the
registration and transfer of Notes. This Note may be transferred at the
aforesaid office of the Trustee by surrendering this Note for cancellation,
accompanied by a written instrument of transfer in form satisfactory to the
Issuer and the Trustee and duly executed by the registered holder hereof in
person or by the holder's attorney duly authorized in writing, and thereupon
the Trustee shall issue in the name of the transferee or transferees, in
exchange herefor, a new Note or Notes having identical terms and provisions and
having a like aggregate principal amount in authorized denominations, subject
to the terms and conditions set forth herein; provided, however, that the
Trustee will not be required (i) to register the transfer of or exchange any
Note that has been called for redemption in whole or in part, except the
unredeemed portion of Notes being redeemed in part, (ii) to register the
transfer of or exchange any Note if the holder thereof has exercised his right,
if any, to require the Issuer to repurchase such Note in whole or in part,
except the portion of such Note not required to be repurchased, or (iii) to
register the transfer of or exchange Notes to the extent and during the period
so provided in the Senior Indenture with respect to the redemption of Notes.
Notes are exchangeable at said office for other Notes of other authorized
denominations of equal aggregate principal amount having identical terms and
provisions. All such exchanges and transfers of Notes will be free of charge,
but the Issuer may require payment of a sum sufficient to cover any tax or
other governmental charge in connection therewith. All Notes surrendered for
exchange shall be accompanied by a written instrument of transfer in form
satisfactory to the Issuer and the Trustee and executed by the registered
holder in person or by the holder's attorney duly authorized in writing. The
date of registration of any Note delivered upon any exchange or transfer of
Notes shall be such that no gain or loss of interest results from such exchange
or transfer.

     In case this Note shall at any time become mutilated, defaced or be
destroyed, lost or stolen and this Note or evidence of the loss, theft or
destruction thereof (together with the indemnity hereinafter referred to and
such other documents or proof as may be required in the premises) shall be
delivered to the Trustee, the Issuer in its discretion may execute a new Note
of like tenor in exchange for this Note, but, if this Note is destroyed, lost
or stolen, only upon receipt of evidence satisfactory to the Trustee and the
Issuer that this Note was destroyed or lost or stolen and, if required, upon
receipt also of indemnity satisfactory to each of them. All expenses and
reasonable charges associated with procuring such indemnity and with the
preparation, authentication and delivery of a new Note shall be borne by the
owner of the Note mutilated, defaced, destroyed, lost or stolen.

     The Senior Indenture provides that (a) if an Event of Default (as defined
in the Senior Indenture) due to the default in payment of principal of,
premium, if any, or interest on, any series of debt securities issued under the
Senior Indenture, including the series of Senior Medium-Term Notes of which
this Note forms a part, or due to the default in the performance or breach of
any other covenant or warranty of the Issuer applicable to the debt securities
of such series but not applicable to all outstanding debt securities issued
under the Senior Indenture shall have occurred and be continuing, either the
Trustee or the holders of not less than 25% in aggregate principal amount of
the outstanding debt securities of each affected series, voting as one class,
by notice in

                                      A-28
<PAGE>

writing to the Issuer and to the Trustee, if given by the securityholders, may
then declare the principal of all debt securities of all such series and
interest accrued thereon to be due and payable immediately and (b) if an Event
of Default due to a default in the performance of any other of the covenants or
agreements in the Senior Indenture applicable to all outstanding debt
securities issued thereunder, including this Note, or due to certain events of
bankruptcy, insolvency or reorganization of the Issuer, shall have occurred and
be continuing, either the Trustee or the holders of not less than 25% in
aggregate principal amount of all outstanding debt securities issued under the
Senior Indenture, voting as one class, by notice in writing to the Issuer and
to the Trustee, if given by the securityholders, may declare the principal of
all such debt securities and interest accrued thereon to be due and payable
immediately, but upon certain conditions such declarations may be annulled and
past defaults may be waived (except a continuing default in payment of
principal or premium, if any, or interest on such debt securities) by the
holders of a majority in aggregate principal amount of the debt securities of
all affected series then outstanding.

     If the face hereof indicates that this Note is subject to "Modified
Payment upon Acceleration or Redemption," then (i) if the principal hereof is
declared to be due and payable as described in the preceding paragraph, the
amount of principal due and payable with respect to this Note shall be limited
to the aggregate principal amount hereof multiplied by the sum of the Issue
Price specified on the face hereof (expressed as a percentage of the aggregate
principal amount) plus the original issue discount amortized from the Interest
Accrual Date to the date of declaration, which amortization shall be calculated
using the "interest method" (computed in accordance with generally accepted
accounting principles in effect on the date of declaration), (ii) for the
purpose of any vote of securityholders taken pursuant to the Senior Indenture
prior to the acceleration of payment of this Note, the principal amount hereof
shall equal the amount that would be due and payable hereon, calculated as set
forth in clause (i) above, if this Note were declared to be due and payable on
the date of any such vote and (iii) for the purpose of any vote of
securityholders taken pursuant to the Senior Indenture following the
acceleration of payment of this Note, the principal amount hereof shall equal
the amount of principal due and payable with respect to this Note, calculated
as set forth in clause (i) above.

     If the face hereof indicates that this Note is subject to "Tax Redemption
and Payment of Additional Amounts," this Note may be redeemed, as a whole, at
the option of the Issuer at any time prior to maturity, upon the giving of a
notice of redemption as described below, at a redemption price equal to 100% of
the principal amount hereof, together with accrued interest to the date fixed
for redemption (except that if this Note is subject to "Modified Payment upon
Acceleration or Redemption," such redemption price would be limited to the
aggregate principal amount hereof multiplied by the sum of the Issue Price
specified on the face hereof (expressed as a percentage of the aggregate
principal amount) plus the original issue discount amortized from the Interest
Accrual Date to the date of redemption, which amortization shall be calculated
using the "interest method" (computed in accordance with generally accepted
accounting principles in effect on the date of redemption) (the "Amortized
Amount")), if the Issuer determines that, as a result of any change in or
amendment to the laws, or any regulations or rulings promulgated thereunder, of
the United States or of any political subdivision or taxing authority thereof
or therein affecting taxation, or any change in official position regarding the
application or interpretation of such laws, regulations or rulings, which
change or amendment becomes effective on or after the Initial Offering Date
hereof, the Issuer has or will become obligated to pay Additional Amounts, as
defined below, with respect to this Note

                                      A-29
<PAGE>

as described below. Prior to the giving of any notice of redemption pursuant to
this paragraph, the Issuer shall deliver to the Trustee (i) a certificate
stating that the Issuer is entitled to effect such redemption and setting forth
a statement of facts showing that the conditions precedent to the right of the
Issuer to so redeem have occurred, and (ii) an opinion of independent legal
counsel satisfactory to the Trustee to such effect based on such statement of
facts; provided that no such notice of redemption shall be given earlier than
60 calendar days prior to the earliest date on which the Issuer would be
obligated to pay such Additional Amounts if a payment in respect of this Note
were then due.

     Notice of redemption will be given not less than 30 nor more than 60
calendar days prior to the date fixed for redemption or within the Redemption
Notice Period specified on the face hereof, which date and the applicable
redemption price will be specified in the notice.

     If the face hereof indicates that this Note is subject to "Tax Redemption
and Payment of Additional Amounts," the Issuer will, subject to certain
exceptions and limitations set forth below, pay such additional amounts (the
"Additional Amounts") to the holder of this Note who is a United States Alien
as may be necessary in order that every net payment of the principal of and
interest on this Note and any other amounts payable on this Note, after
withholding or deduction for or on account of any present or future tax,
assessment or governmental charge imposed upon or as a result of such payment
by the United States, or any political subdivision or taxing authority thereof
or therein, will not be less than the amount provided for in this Note to be
then due and payable. The Issuer will not, however, make any payment of
Additional Amounts to any such holder who is a United States Alien for or on
account of:

          (a) any present or future tax, assessment or other governmental
     charge that would not have been so imposed but for (i) the existence of
     any present or former connection between such holder, or between a
     fiduciary, settlor, beneficiary, member or shareholder of such holder, if
     such holder is an estate, a trust, a partnership or a corporation for
     United States federal income tax purposes, and the United States,
     including, without limitation, such holder, or such fiduciary, settlor,
     beneficiary, member or shareholder, being or having been a citizen or
     resident thereof or being or having been engaged in a trade or business or
     present therein or having, or having had, a permanent establishment
     therein or (ii) the presentation by or on behalf of the holder of this
     Note for payment on a date more than 15 calendar days after the date on
     which such payment became due and payable or the date on which payment
     thereof is duly provided for, whichever occurs later;

          (b) any estate, inheritance, gift, sales, transfer, excise or
     personal property tax or any similar tax, assessment or governmental
     charge;

          (c) any tax, assessment or other governmental charge imposed by
     reason of such holder's past or present status as a personal holding
     company or foreign personal holding company or controlled foreign
     corporation or passive foreign investment company with respect to the
     United States or as a corporation which accumulates earnings to avoid
     United States federal income tax or as a private foundation or other
     tax-exempt organization or a bank receiving interest under Section
     881(c)(3)(A) of the Internal Revenue Code of 1986, as amended;

                                      A-30
<PAGE>

          (d) any tax, assessment or other governmental charge that is payable
     otherwise than by withholding or deduction from payments on or in respect
     of this Note;

          (e) any tax, assessment or other governmental charge required to be
     withheld by any Paying Agent from any payment of principal of, or interest
     on, this Note, if such payment can be made without such withholding by any
     other Paying Agent in a city in Western Europe;

          (f) any tax, assessment or other governmental charge that would not
     have been imposed but for the failure to comply with certification,
     information or other reporting requirements concerning the nationality,
     residence or identity of the holder or beneficial owner of this Note, if
     such compliance is required by statute or by regulation of the United
     States or of any political subdivision or taxing authority thereof or
     therein as a precondition to relief or exemption from such tax, assessment
     or other governmental charge;

          (g) any tax, assessment or other governmental charge imposed by
     reason of such holder's past or present status as the actual or
     constructive owner of 10% or more of the total combined voting power of
     all classes of stock entitled to vote of the Issuer or as a direct or
     indirect subsidiary of the Issuer; or

          (h) any combination of items (a), (b), (c), (d), (e), (f) or (g).

In addition, the Issuer shall not be required to make any payment of Additional
Amounts (i) to any such holder where such withholding or deduction is imposed
on a payment to an individual and is required to be made pursuant to any law
implementing or complying with, or introduced in order to conform to, any
European Union Directive on the taxation of savings; or (ii) by or on behalf of
a holder who would have been able to avoid such withholding or deduction by
presenting this Note or the relevant coupon to another Paying Agent in a member
state of the European Union. Nor shall the Issuer pay Additional Amounts with
respect to any payment on this Note to a United States Alien who is a fiduciary
or partnership or other than the sole beneficial owner of such payment to the
extent such payment would be required by the laws of the United States (or any
political subdivision thereof) to be included in the income, for tax purposes,
of a beneficiary or settlor with respect to such fiduciary or a member of such
partnership or a beneficial owner who would not have been entitled to the
Additional Amounts had such beneficiary, settlor, member or beneficial owner
been the holder of this Note.

     The Senior Indenture permits the Issuer and the Trustee, with the consent
of the holders of not less than a majority in aggregate principal amount of the
debt securities of all series issued under the Senior Indenture then
outstanding and affected (voting as one class), to execute supplemental
indentures adding any provisions to or changing in any manner the rights of the
holders of each series so affected; provided that the Issuer and the Trustee
may not, without the consent of the holder of each outstanding debt security
affected thereby, (a) extend the final maturity of any such debt security, or
reduce the principal amount thereof, or reduce the rate or extend the time of
payment of interest thereon, or reduce any amount payable on redemption
thereof, or change the currency of payment thereof, or modify or amend the
provisions for conversion of any currency into any other currency, or modify or
amend the provisions for conversion or exchange of the debt security for
securities of the Issuer or other entities or for other property or the cash
value of the property (other

                                      A-31
<PAGE>

than as provided in the antidilution provisions or other similar adjustment
provisions of the debt securities or otherwise in accordance with the terms
thereof), or impair or affect the rights of any holder to institute suit for
the payment thereof or (b) reduce the aforesaid percentage in principal amount
of debt securities the consent of the holders of which is required for any such
supplemental indenture.

     Except as set forth below, if the principal of, premium, if any, or
interest on this Note is payable in a Specified Currency other than U.S.
dollars and such Specified Currency is not available to the Issuer for making
payments hereon due to the imposition of exchange controls or other
circumstances beyond the control of the Issuer or is no longer used by the
government of the country issuing such currency or for the settlement of
transactions by public institutions within the international banking community,
then the Issuer will be entitled to satisfy its obligations to the holder of
this Note by making such payments in U.S. dollars on the basis of the Market
Exchange Rate on the date of such payment or, if the Market Exchange Rate is
not available on such date, as of the most recent practicable date; provided,
however, that if the euro has been substituted for such Specified Currency, the
Issuer may at its option (or shall, if so required by applicable law) without
the consent of the holder of this Note effect the payment of principal of,
premium, if any, or interest on, any Note denominated in such Specified
Currency in euro in lieu of such Specified Currency in conformity with legally
applicable measures taken pursuant to, or by virtue of, the Treaty establishing
the European Community, as amended. Any payment made under such circumstances
in U.S. dollars or euro where the required payment is in an unavailable
Specified Currency will not constitute an Event of Default. If such Market
Exchange Rate is not then available to the Issuer or is not published for a
particular Specified Currency, the Market Exchange Rate will be based on the
highest bid quotation in The City of New York received by the Exchange Rate
Agent at approximately 11:00 a.m., New York City time, on the second Business
Day preceding the date of such payment from three recognized foreign exchange
dealers (the "Exchange Dealers") for the purchase by the quoting Exchange
Dealer of the Specified Currency for U.S. dollars for settlement on the payment
date, in the aggregate amount of the Specified Currency payable to those
holders or beneficial owners of Notes and at which the applicable Exchange
Dealer commits to execute a contract. One of the Exchange Dealers providing
quotations may be the Exchange Rate Agent unless the Exchange Rate Agent is an
affiliate of the Issuer. If those bid quotations are not available, the
Exchange Rate Agent shall determine the market exchange rate at its sole
discretion.

     The "Exchange Rate Agent" shall be Morgan Stanley & Co. Incorporated,
unless otherwise indicated on the face hereof.

     All determinations referred to above made by, or on behalf of, the Issuer
or by, or on behalf of, the Exchange Rate Agent shall be at such entity's sole
discretion and shall, in the absence of manifest error, be conclusive for all
purposes and binding on holders of Notes and coupons.

     So long as this Note shall be outstanding, the Issuer will cause to be
maintained an office or agency for the payment of the principal of and premium,
if any, and interest on this Note as herein provided in the Borough of
Manhattan, The City of New York, and an office or agency in said Borough of
Manhattan for the registration, transfer and exchange as aforesaid of the
Notes. The Issuer may designate other agencies for the payment of said
principal, premium and interest at such place or places (subject to applicable
laws and regulations) as the Issuer may decide. So long as

                                      A-32
<PAGE>

there shall be such an agency, the Issuer shall keep the Trustee advised of the
names and locations of such agencies, if any are so designated. If any European
Union Directive on the taxation of savings comes into force, the Issuer will,
to the extent possible as a matter of law, maintain a Paying Agent in a member
state of the European Union that will not be obligated to withhold or deduct
tax pursuant to any such Directive or any law implementing or complying with,
or introduced in order to conform to, such Directive.

     With respect to moneys paid by the Issuer and held by the Trustee or any
Paying Agent for payment of the principal of or interest or premium, if any, on
any Notes that remain unclaimed at the end of two years after such principal,
interest or premium shall have become due and payable (whether at maturity or
upon call for redemption or otherwise), (i) the Trustee or such Paying Agent
shall notify the holders of such Notes that such moneys shall be repaid to the
Issuer and any person claiming such moneys shall thereafter look only to the
Issuer for payment thereof and (ii) such moneys shall be so repaid to the
Issuer. Upon such repayment all liability of the Trustee or such Paying Agent
with respect to such moneys shall thereupon cease, without, however, limiting
in any way any obligation that the Issuer may have to pay the principal of or
interest or premium, if any, on this Note as the same shall become due.

     No provision of this Note or of the Senior Indenture shall alter or impair
the obligation of the Issuer, which is absolute and unconditional, to pay the
principal of, premium, if any, and interest on this Note at the time, place,
and rate, and in the coin or currency, herein prescribed unless otherwise
agreed between the Issuer and the registered holder of this Note.

     Prior to due presentment of this Note for registration of transfer, the
Issuer, the Trustee and any agent of the Issuer or the Trustee may treat the
holder in whose name this Note is registered as the owner hereof for all
purposes, whether or not this Note be overdue, and none of the Issuer, the
Trustee or any such agent shall be affected by notice to the contrary.

     No recourse shall be had for the payment of the principal of, premium, if
any, or the interest on this Note, for any claim based hereon, or otherwise in
respect hereof, or based on or in respect of the Senior Indenture or any
indenture supplemental thereto, against any incorporator, shareholder, officer
or director, as such, past, present or future, of the Issuer or of any
successor corporation, either directly or through the Issuer or any successor
corporation, whether by virtue of any constitution, statute or rule of law or
by the enforcement of any assessment or penalty or otherwise, all such
liability being, by the acceptance hereof and as part of the consideration for
the issue hereof, expressly waived and released.

     This Note shall for all purposes be governed by, and construed in
accordance with, the laws of the State of New York.

     As used herein, the term "United States Alien" means any person who is,
for United States federal income tax purposes, (i) a nonresident alien
individual, (ii) a foreign corporation, (iii) a nonresident alien fiduciary of
a foreign estate or trust or (iv) a foreign partnership one or more of the
members of which is, for United States federal income tax purposes, a
nonresident alien individual, a foreign corporation or a nonresident alien
fiduciary of a foreign estate or trust.

                                      A-33
<PAGE>

     All terms used in this Note which are defined in the Senior Indenture and
not otherwise defined herein shall have the meanings assigned to them in the
Senior Indenture.

                                      A-34
<PAGE>

                                 ABBREVIATIONS

         The following abbreviations, when used in the inscription on the face
of this instrument, shall be construed as though they were written out in full
according to applicable laws or regulations:

               TEN COM -  as tenants in common
               TEN ENT -  as tenants by the entireties
               JT TEN  -  as joint tenants with right of survivorship and not
                          as tenants in common

     UNIF GIFT MIN ACT - __________________ Custodian _________________________
                               (Minor)                         (Cust)

     Under Uniform Gifts to Minors Act ________________________________
                                                  (State)

     Additional abbreviations may also be used though not in the above list.

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

                                      A-35
<PAGE>

     FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and
transfer(s) unto

_________________________________________
[PLEASE INSERT SOCIAL SECURITY OR OTHER
   IDENTIFYING NUMBER OF ASSIGNEE]

_______________________________________________________________________________

_______________________________________________________________________________

_______________________________________________________________________________
[PLEASE PRINT OR TYPE NAME AND ADDRESS, INCLUDING ZIP CODE, OF ASSIGNEE]

the within Note and all rights thereunder, hereby irrevocably constituting and
appointing such person attorney to transfer such note on the books of the
Issuer, with full power of substitution in the premises.

Dated: _______________________

NOTICE: The signature to this assignment must correspond with the name
        as written upon the face of the within Note in every particular
        without alteration or enlargement or any change whatsoever.

                                      A-36
<PAGE>

                           OPTION TO ELECT REPAYMENT

     The undersigned hereby irrevocably requests and instructs the Issuer to
repay the within Note (or portion thereof specified below) pursuant to its
terms at a price equal to the principal amount thereof, together with interest
to the Optional Repayment Date, to the undersigned at

_______________________________________________________________________________

_______________________________________________________________________________

_______________________________________________________________________________
        (Please print or typewrite name and address of the undersigned)

     If less than the entire principal amount of the within Note is to be
repaid, specify the portion thereof which the holder elects to have repaid:
_________; and specify the denomination or denominations (which shall not be
less than the minimum authorized denomination) of the Notes to be issued to the
holder for the portion of the within Note not being repaid (in the absence of
any such specification, one such Note will be issued for the portion not being
repaid): ____________.

Dated: _______________________    _____________________________________________
                                  NOTICE: The signature on this Option to Elect
                                  Repayment must correspond with the name as
                                  written upon the face of the within instrument
                                  in every particular without alteration or
                                  enlargement.

                                      A-37

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