Document:

<PAGE>

                                   EXHIBIT 4.3

                        AMENDED AND RESTATED DECLARATION

                                    OF TRUST

                               PB Capital Trust II

                           Dated as of March 29, 2005

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                               TABLE OF CONTENTS

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                                        ARTICLE I
                              INTERPRETATION AND DEFINITIONS

SECTION 1.1.      Definitions............................................................        1

                                       ARTICLE II
                                      ORGANIZATION

SECTION 2.1.      Name...................................................................        8

SECTION 2.2.      Office.................................................................        8

SECTION 2.3.      Purpose................................................................        8

SECTION 2.4.      Authority..............................................................        9

SECTION 2.5.      Title to Property of the Trust.........................................        9

SECTION 2.6.      Powers and Duties of the Trustees and the Administrators...............        9

SECTION 2.7.      Prohibition of Actions by the Trust and the Trustees...................       14

SECTION 2.8.      Powers and Duties of the Institutional Trustee.........................       15

SECTION 2.9.      Certain Duties and Responsibilities of the Trustees and the
                  Administrators.........................................................       16

SECTION 2.10.     Certain Rights of Institutional Trustee................................       18

SECTION 2.11.     Delaware Trustee.......................................................       20

SECTION 2.12.     Execution of Documents.................................................       20

SECTION 2.13.     Not Responsible for Recitals or Issuance of Securities.................       21

SECTION 2.14.     Duration of Trust......................................................       21

SECTION 2.15.     Mergers................................................................       21

                                       ARTICLE III
                                         SPONSOR

SECTION 3.1.      Sponsor's Purchase of Common Securities................................       23

SECTION 3.2.      Responsibilities of the Sponsor........................................       23
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                                       ARTICLE IV
                               TRUSTEES AND ADMINISTRATORS

SECTION 4.1.      Number of Trustees.....................................................       23

SECTION 4.2.      Delaware Trustee.......................................................       24

SECTION 4.3.      Institutional Trustee; Eligibility.....................................       24

SECTION 4.4.      Certain Qualifications of the Delaware Trustee Generally...............       24

SECTION 4.5.      Administrators.........................................................       25

SECTION 4.6.      Initial Delaware Trustee...............................................       25

SECTION 4.7.      Appointment, Removal and Resignation of the Trustees and
                  the Administrators.....................................................       25

SECTION 4.8.      Vacancies Among Trustees...............................................       27

SECTION 4.9.      Effect of Vacancies....................................................       27

SECTION 4.10.     Meetings of the Trustees and the Administrators........................       27

SECTION 4.11.     Delegation of Power....................................................       28

SECTION 4.12.     Merger, Conversion, Consolidation or Succession to Business............       28

                                        ARTICLE V
                                      DISTRIBUTIONS

SECTION 5.1.      Distributions..........................................................       28

                                       ARTICLE VI
                                 ISSUANCE OF SECURITIES

SECTION 6.1.      General Provisions Regarding Securities................................       29

SECTION 6.2.      Paying Agent, Transfer Agent, Calculation Agent and Registrar..........       30

SECTION 6.3.      Form and Dating........................................................       30

SECTION 6.4.      Mutilated, Destroyed, Lost or Stolen Certificates......................       31

SECTION 6.5.      Temporary Securities...................................................       31

SECTION 6.6.      Cancellation...........................................................       31
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SECTION 6.7.      Rights of Holders; Waivers of Past Defaults............................       31

                                       ARTICLE VII
                          DISSOLUTION AND TERMINATION OF TRUST

SECTION 7.1.      Dissolution and Termination of Trust...................................       33

                                      ARTICLE VIII
                                  TRANSFER OF INTERESTS

SECTION 8.1.      General................................................................       34

SECTION 8.2.      Transfer Procedures and Restrictions...................................       35

SECTION 8.3.      Deemed Security Holders................................................       38

                                        ARTICLE IX
           LIMITATION OF LIABILITY OF HOLDERS OF SECURITIES, TRUSTEES OR OTHERS

SECTION 9.1.      Liability..............................................................       38

SECTION 9.2.      Exculpation............................................................       39

SECTION 9.3.      Fiduciary Duty.........................................................       39

SECTION 9.4.      Indemnification........................................................       40

SECTION 9.5.      Outside Businesses.....................................................       43

SECTION 9.6.      Compensation; Fee......................................................       43

                                        ARTICLE X
                                       ACCOUNTING

SECTION 10.1.     Fiscal Year............................................................       44

SECTION 10.2.     Certain Accounting Matters.............................................       44

SECTION 10.3.     Banking................................................................       44

SECTION 10.4.     Withholding............................................................       45

                                       ARTICLE XI
                                 AMENDMENTS AND MEETINGS

SECTION 11.1.     Amendments.............................................................       45
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SECTION 11.2.     Meetings of the Holders of the Securities; Action by
                  Written Consent........................................................       47

                                       ARTICLE XII
              REPRESENTATIONS OF INSTITUTIONAL TRUSTEE AND DELAWARE TRUSTEE

SECTION 12.1.     Representations and Warranties of Institutional Trustee................       49

SECTION 12.2.     Representations and Warranties of Delaware Trustee.....................       49

                                      ARTICLE XIII
                                      MISCELLANEOUS

SECTION 13.1.     Notices................................................................       50

SECTION 13.2.     Governing Law..........................................................       52

SECTION 13.3.     Submission to Jurisdiction.............................................       52

SECTION 13.4.     Intention of the Parties...............................................       52

SECTION 13.5.     Headings...............................................................       52

SECTION 13.6.     Successors and Assigns.................................................       52

SECTION 13.7.     Partial Enforceability.................................................       53

SECTION 13.8.     Counterparts...........................................................       53
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ANNEXES AND EXHIBITS

ANNEX I           Terms of TP Securities and Common Securities

EXHIBIT A-1       Form of Capital Security Certificate
EXHIBIT A-2       Form of Common Security Certificate
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                                      -v-
<PAGE>

                    AMENDED AND RESTATED DECLARATION OF TRUST

                                       OF

                               PB Capital Trust II

                                 March 29, 2005

      AMENDED AND RESTATED DECLARATION OF TRUST (this "Declaration"), dated and
effective as of March 29, 2005, by the Trustees (as defined herein), the
Administrators (as defined herein), the Sponsor (as defined herein) and the
holders from time to time of undivided beneficial interests in the assets of the
Trust (as defined herein) to be issued pursuant to this Declaration.

      WHEREAS, certain of the Trustees, the Administrators and the Sponsor
established PB Capital Trust II (the "Trust"), a statutory trust under the
Statutory Trust Act (as defined herein), pursuant to a Declaration of Trust,
dated as of March 25, 2005 (the "Original Declaration"), and a Certificate of
Trust filed with the Secretary of State of the State of Delaware on March 25,
2005, for the sole purpose of issuing and selling certain securities
representing undivided beneficial interests in the assets of the Trust and
investing the proceeds thereof in the Debentures (as defined herein) of the
Debenture Issuer (as defined herein) in connection with the issuance of the
Capital Securities (as defined herein);

      WHEREAS, as of the date hereof, no interests in the assets of the Trust
have been issued; and

      WHEREAS, all of the Trustees, the Administrators and the Sponsor, by this
Declaration, amend and restate each and every term and provision of the Original
Declaration.

      NOW, THEREFORE, it being the intention of the parties hereto to continue
the Trust as a statutory trust under the Statutory Trust Act and that this
Declaration constitutes the governing instrument of such statutory trust, and
that all assets contributed to the Trust will be held in trust for the benefit
of the holders, from time to time, of the securities representing undivided
beneficial interests in the assets of the Trust issued hereunder, subject to the
provisions of this Declaration, and, in consideration of the mutual covenants
contained herein and other good and valuable consideration, the receipt of which
is hereby acknowledged, the parties, intending to be legally bound hereby, amend
and restate in its entirety the Original Declaration and agree as follows:

                                    ARTICLE I
                         INTERPRETATION AND DEFINITIONS

      SECTION 1.1. Definitions. Unless the context otherwise requires:

            (a) capitalized terms used in this Declaration but not defined in
the preamble above or elsewhere herein have the respective meanings assigned to
them in this Section 1.1 or, if not defined in this Section 1.1 or elsewhere
herein, in the Indenture;

<PAGE>

            (b) a term defined anywhere in this Declaration has the same meaning
throughout;

            (c) all references to "the Declaration" or "this Declaration" are to
this Declaration as modified, supplemented or amended from time to time;

            (d) all references in this Declaration to Articles and Sections and
Annexes and Exhibits are to Articles and Sections of and Annexes and Exhibits to
this Declaration unless otherwise specified;

            (e) a term defined in the Trust Indenture Act (as defined herein)
has the same meaning when used in this Declaration unless otherwise defined in
this Declaration or unless the context otherwise requires; and

            (f) a reference to the singular includes the plural and vice versa.

      "Additional Interest" has the meaning set forth in Section 3.06 of the
Indenture.

      "Administrative Action" has the meaning set forth in paragraph 4(a) of
Annex I.

      "Administrators" means each of Monty G. Watson and Kelly J. Johnson,
solely in such Person's capacity as Administrator of the Trust continued
hereunder and not in such Person's individual capacity, or such Administrator's
successor in interest in such capacity, or any successor appointed as herein
provided.

      "Affiliate" has the same meaning as given to that term in Rule 405 of the
Securities Act or any successor rule thereunder.

      "Authorized Officer" of a Person means any Person that is authorized to
bind such Person.

      "Bankruptcy Event" means, with respect to any Person:

            (a) a court having jurisdiction in the premises enters a decree or
order for relief in respect of such Person in an involuntary case under any
applicable bankruptcy, insolvency or other similar law now or hereafter in
effect, or appoints a receiver, liquidator, assignee, custodian, trustee,
sequestrator or similar official of such Person or for any substantial part of
its property, or orders the winding-up or liquidation of its affairs, and such
decree, appointment or order remains unstayed and in effect for a period of 90
consecutive days; or

            (b) such Person commences a voluntary case under any applicable
bankruptcy, insolvency or other similar law now or hereafter in effect, consents
to the entry of an order for relief in an involuntary case under any such law,
or consents to the appointment of or taking possession by a receiver,
liquidator, assignee, trustee, custodian, sequestrator or other similar official
of such Person of any substantial part of its property, or makes any general
assignment for the benefit of creditors, or fails generally to pay its debts as
they become due.

                                      -2-
<PAGE>

      "Business Day" means any day other than Saturday, Sunday or any other day
on which banking institutions in Wilmington, Delaware or New York City or the
city of the Corporate Trust Office are permitted or required by any applicable
law or executive order to close.

      "Calculation Agent" has the meaning set forth in Section 1.01 of the
Indenture.

      "Capital Securities" has the meaning set forth in Section 6.1(a).

      "Capital Securities Purchase Agreement" means the Capital Securities
Purchase Agreement dated as of March 25, 2005 among the Trust, the Sponsor and
Merrill Lynch International.

      "Capital Security Certificate" means a definitive Certificate registered
in the name of the Holder representing a Capital Security substantially in the
form of Exhibit A 1.

      "Capital Treatment Event" has the meaning set forth in paragraph 4(a) of
Annex I.

      "Certificate" means any certificate evidencing Securities.

      "Certificate of Trust" means the certificate of trust filed with the
Secretary of State of the State of Delaware with respect to the Trust, as
amended and restated from time to time.

      "Closing Date" means the date of execution and delivery of this
Declaration.

      "Code" means the Internal Revenue Code of 1986, as amended from time to
time, or any successor legislation.

      "Commission" means the United States Securities and Exchange Commission.

      "Common Securities" has the meaning set forth in Section 6.1(a).

      "Common Security Certificate" means a definitive Certificate registered in
the name of the Holder representing a Common Security substantially in the form
of Exhibit A-2.

      "Company Indemnified Person" means (a) any Administrator; (b) any
Affiliate of any Administrator; (c) any officers, directors, shareholders,
members, partners, employees, representatives or agents of any Administrator; or
(d) any officer, employee or agent of the Trust or its Affiliates.

      "Corporate Trust Office" means the office of the Institutional Trustee at
which the corporate trust business of the Institutional Trustee shall, at any
particular time, be principally administered, which office shall at all times be
located in the United States and at the date of execution of this Declaration is
located at 600 Travis Street, 50th Floor, Houston, TX 77002, Attn: Institutional
Trust Services - PB Capital Trust II.

      "Coupon Rate" has the meaning set forth in paragraph 2(a) of Annex I.

                                      -3-
<PAGE>

      "Covered Person" means: (a) any Administrator, officer, director,
shareholder, partner, member, representative, employee or agent of (i) the Trust
or (ii) the Trust's Affiliates; and (b) any Holder of Securities.

      "Debenture Issuer" means The PB Financial Services Corporation, a bank
holding company incorporated in Georgia, in its capacity as issuer of the
Debentures under the Indenture.

      "Debenture Trustee" means JPMorgan Chase Bank, National Association, not
in its individual capacity but solely as trustee under the Indenture until a
successor is appointed thereunder, and thereafter means such successor trustee.

      "Debentures" means the Junior Subordinated Debt Securities due June 15,
2035 to be issued by the Debenture Issuer under the Indenture.

      "Deferred Interest" means any interest on the Debentures that would have
been overdue and unpaid for more than one Distribution Payment Date but for the
imposition of an Extension Period, and the interest that shall accrue (to the
extent that the payment of such interest is legally enforceable) on such
interest at the Coupon Rate applicable during such Extension Period, compounded
quarterly from the date on which such Deferred Interest would otherwise have
been due and payable until paid or made available for payment.

      "Definitive Capital Securities" means any Capital Securities in definitive
form issued by the Trust.

      "Delaware Trustee" has the meaning set forth in Section 4.2.

      "Direct Action" has the meaning set forth in Section 2.8(e).

      "Distribution" means a distribution payable to Holders of Securities in
accordance with Section 5.1.

      "Distribution Payment Date" has the meaning set forth in paragraph 2(e) of
Annex I.

      "Distribution Payment Period" means the period from and including a
Distribution Payment Date, or in the case of the first Distribution Payment
Period, the original date of issuance of the Securities, to, but excluding, the
next succeeding Distribution Payment Date or, in the case of the last
Distribution Payment Period, the Redemption Date, Special Redemption Date or
Maturity Date (each as defined in the Indenture), as the case may be, for the
related Debentures.

      "Event of Default" means the occurrence of an Indenture Event of Default.

      "Exchange Act" means the Securities Exchange Act of 1934, as amended from
time to time, or any successor legislation.

      "Extension Period" has the meaning set forth in paragraph 2(e) of Annex I.

                                      -4-
<PAGE>

      "Fiduciary Indemnified Person" shall mean each of the Institutional
Trustee (including in its individual capacity), the Delaware Trustee (including
in its individual capacity), any Affiliate of the Institutional Trustee or the
Delaware Trustee, and any officers, directors, shareholders, members, partners,
employees, representatives, custodians, nominees or agents of the Institutional
Trustee or the Delaware Trustee.

      "Fiscal Year" has the meaning set forth in Section 10.1.

      "Guarantee" means the Guarantee Agreement, dated as of the Closing Date,
of the Sponsor (the "Guarantor") in respect of the Capital Securities.

      "Holder" means a Person in whose name a Certificate representing a
Security is registered on the register maintained by or on behalf of the
Registrar, such Person being a beneficial owner within the meaning of the
Statutory Trust Act.

      "Indemnified Person" means a Company Indemnified Person or a Fiduciary
Indemnified Person.

      "Indenture" means the Indenture, dated as of the Closing Date, between the
Debenture Issuer and the Debenture Trustee, and any indenture supplemental
thereto pursuant to which the Debentures are to be issued.

      "Indenture Event of Default" means an "Event of Default" as defined in the
Indenture.

      "Institutional Trustee" means the Trustee meeting the eligibility
requirements set forth in Section 4.3.

      "Investment Company" means an investment company as defined in the
Investment Company Act.

      "Investment Company Act" means the Investment Company Act of 1940, as
amended from time to time, or any successor legislation.

      "Investment Company Event" has the meaning set forth in paragraph 4(a) of
Annex I.

      "Legal Action" has the meaning set forth in Section 2.8(e).

      "LIBOR" means the London Interbank Offered Rate for U.S. Dollar deposits
in Europe as determined by the Calculation Agent according to paragraph 2(b) of
Annex I.

      "LIBOR Banking Day" has the meaning set forth in paragraph 2(b)(1) of
Annex I.

      "LIBOR Business Day" has the meaning set forth in paragraph 2(b)(1) of
Annex I.

      "LIBOR Determination Date" has the meaning set forth in paragraph 2(b)(1)
of Annex I.

      "Liquidation" has the meaning set forth in paragraph 3 of Annex I.

      "Liquidation Distribution" has the meaning set forth in paragraph 3 of
Annex I.

                                      -5-
<PAGE>

      "Majority in liquidation amount of the Securities" means Holders of
outstanding Securities voting together as a single class or, as the context may
require, Holders of outstanding Capital Securities or Holders of outstanding
Common Securities voting separately as a class, who are the record owners of
more than 50% of the aggregate liquidation amount (including the stated amount
that would be paid on redemption, liquidation or otherwise, plus accrued and
unpaid Distributions to the date upon which the voting percentages are
determined) of all outstanding Securities of the relevant class.

      "Notice" has the meaning set forth in Section 2.11 of the Indenture.

      "Officers' Certificate" means, with respect to any Person, a certificate
signed by two Authorized Officers of such Person. Any Officers' Certificate
delivered with respect to compliance with a condition or covenant provided for
in this Declaration shall include:

            (a) a statement that each officer signing the Officers' Certificate
has read the covenant or condition and the definitions relating thereto;

            (b) a brief statement of the nature and scope of the examination or
investigation undertaken by each officer in rendering the Officers' Certificate;

            (c) a statement that each such officer has made such examination or
investigation as, in such officer's opinion, is necessary to enable such officer
to express an informed opinion as to whether or not such covenant or condition
has been complied with; and

            (d) a statement as to whether, in the opinion of each such officer,
such condition or covenant has been complied with.

      "Paying Agent" has the meaning set forth in Section 6.2.

      "Payment Amount" has the meaning set forth in Section 5.1.

      "Person" means a legal person, including any individual, corporation,
estate, partnership, joint venture, association, joint stock company, limited
liability company, trust, unincorporated association, or government or any
agency or political subdivision thereof, or any other entity of whatever nature.

      "Placement Agreement" means the Placement Agreement relating to the
offering and sale of Capital Securities.

      "PORTAL" has the meaning set forth in Section 2.6(a)(i)(e).

      "Property Account" has the meaning set forth in Section 2.8(c).

      "Pro Rata" has the meaning set forth in paragraph 8 of Annex I.

      "QIB" means a "qualified institutional buyer" as defined under Rule 144A.

                                      -6-
<PAGE>

      "Quorum" means a majority of the Administrators or, if there are only two
Administrators, both of them.

      "Redemption/Distribution Notice" has the meaning set forth in paragraph
4(e) of Annex I.

      "Redemption Price" has the meaning set forth in paragraph 4(a) of Annex I.

      "Registrar" has the meaning set forth in Section 6.2.

      "Relevant Trustee" has the meaning set forth in Section 4.7(a).

      "Responsible Officer" means, with respect to the Institutional Trustee,
any officer within the Corporate Trust Office of the Institutional Trustee with
direct responsibility for the administration of this Declaration, including any
vice-president, any assistant vice-president, any secretary, any assistant
secretary, the treasurer, any assistant treasurer, any trust officer or other
officer of the Corporate Trust Office of the Institutional Trustee customarily
performing functions similar to those performed by any of the above designated
officers and also means, with respect to a particular corporate trust matter,
any other officer to whom such matter is referred because of that officer's
knowledge of and familiarity with the particular subject.

      "Restricted Securities Legend" has the meaning set forth in Section
8.2(c).

      "Rule 144A" means Rule 144A under the Securities Act.

      "Rule 3a-5" means Rule 3a-5 under the Investment Company Act.

      "Rule 3a-7" means Rule 3a-7 under the Investment Company Act.

      "Securities" means the Common Securities and the Capital Securities, as
applicable.

      "Securities Act" means the Securities Act of 1933, as amended from time to
time, or any successor legislation.

      "Sponsor" means The PB Financial Services Corporation, a bank holding
company that is a U.S. Person incorporated in Georgia, or any successor entity
in a merger, consolidation or amalgamation that is a U.S. Person, in its
capacity as sponsor of the Trust.

      "Statutory Trust Act" means Chapter 38 of Title 12 of the Delaware Code,
12 Del. Code Section 3801 et seq., as it may be amended from time to time, or
any successor legislation.

      "Successor Delaware Trustee" has the meaning set forth in Section 4.7(e).

      "Successor Entity" has the meaning set forth in Section 2.15(b).

      "Successor Institutional Trustee" has the meaning set forth in Section
4.7(b).

      "Successor Securities" has the meaning set forth in Section 2.15(b).

                                      -7-
<PAGE>

      "Super Majority" has the meaning set forth in paragraph 5(b) of Annex I.

      "Tax Event" has the meaning set forth in paragraph 4(a) of Annex I.

      "10% in liquidation amount of the Securities" means Holders of outstanding
Securities voting together as a single class or, as the context may require,
Holders of outstanding Capital Securities or Holders of outstanding Common
Securities voting separately as a class, who are the record owners of 10% or
more of the aggregate liquidation amount (including the stated amount that would
be paid on redemption, liquidation or otherwise, plus accrued and unpaid
Distributions to the date upon which the voting percentages are determined) of
all outstanding Securities of the relevant class.

      "Transfer Agent" has the meaning set forth in Section 6.2.

      "Trust Indenture Act" means the Trust Indenture Act of 1939, as amended
from time-to-time, or any successor legislation.

      "Trustee" or "Trustees" means each Person who has signed this Declaration
as a trustee, so long as such Person shall continue in office in accordance with
the terms hereof, and all other Persons who may from time to time be duly
appointed, qualified and serving as Trustees in accordance with the provisions
hereof, and references herein to a Trustee or the Trustees shall refer to such
Person or Persons solely in their capacity as trustees hereunder.

      "Trust Property" means (a) the Debentures, (b) any cash on deposit in, or
owing to, the Property Account and (c) all proceeds and rights in respect of the
foregoing and any other property and assets for the time being held or deemed to
be held by the Institutional Trustee pursuant to the trusts of this Declaration.

      "U.S. Person" means a United States Person as defined in Section
7701(a)(30) of the Code.

                                   ARTICLE II
                                  ORGANIZATION

      SECTION 2.1. Name. The Trust is named "PB Capital Trust II," as such name
may be modified from time to time by the Administrators following written notice
to the Institutional Trustee and the Holders of the Securities. The Trust's
activities may be conducted under the name of the Trust or any other name deemed
advisable by the Administrators.

      SECTION 2.2. Office. The address of the principal office of the Trust,
which shall be in a state of the United States or the District of Columbia, is
9570 Medlock Bridge Road, Duluth, GA 30097. On ten Business Days' written notice
to the Institutional Trustee and the Holders of the Securities, the
Administrators may designate another principal office, which shall be in a state
of the United States or the District of Columbia.

      SECTION 2.3. Purpose. The exclusive purposes and functions of the Trust
are (a) to issue and sell the Securities representing undivided beneficial
interests in the assets of the Trust, (b) to invest the gross proceeds from such
sale to acquire the Debentures, (c) to facilitate direct

                                      -8-
<PAGE>

investment in the assets of the Trust through issuance of the Common Securities
and the Capital Securities and (d) except as otherwise limited herein, to engage
in only those other activities incidental thereto that are deemed necessary or
advisable by the Institutional Trustee, including, without limitation, those
activities specified in this Declaration. The Trust shall not borrow money,
issue debt or reinvest proceeds derived from investments, pledge any of its
assets, or otherwise undertake (or permit to be undertaken) any activity that
would cause the Trust not to be classified for United States federal income tax
purposes as a grantor trust.

      SECTION 2.4. Authority. Except as specifically provided in this
Declaration, the Institutional Trustee shall have exclusive and complete
authority to carry out the purposes of the Trust. An action taken by a Trustee
on behalf of the Trust and in accordance with such Trustee's powers shall
constitute the act of and serve to bind the Trust. In dealing with the Trustees
acting on behalf of the Trust, no Person shall be required to inquire into the
authority of the Trustees to bind the Trust. Persons dealing with the Trust are
entitled to rely conclusively on the power and authority of the Trustees as set
forth in this Declaration. The Administrators shall have only those ministerial
duties set forth herein with respect to accomplishing the purposes of the Trust
and are not intended to be trustees or fiduciaries with respect to the Trust or
the Holders. The Institutional Trustee shall have the right, but shall not be
obligated except as provided in Section 2.6, to perform those duties assigned to
the Administrators.

      SECTION 2.5. Title to Property of the Trust. Except as provided in Section
2.6(g) and Section 2.8 with respect to the Debentures and the Property Account
or as otherwise provided in this Declaration, legal title to all assets of the
Trust shall be vested in the Trust. The Holders shall not have legal title to
any part of the assets of the Trust, but shall have an undivided beneficial
interest in the assets of the Trust.

      SECTION 2.6. Powers and Duties of the Trustees and the Administrators.

            (a) The Trustees and the Administrators shall conduct the affairs of
the Trust in accordance with the terms of this Declaration. Subject to the
limitations set forth in paragraph (b) of this Section, and in accordance with
the following provisions (i) and (ii), the Administrators and, at the direction
of the Administrators, the Trustees, shall have the authority to enter into all
transactions and agreements determined by the Administrators to be appropriate
in exercising the authority, express or implied, otherwise granted to the
Trustees or the Administrators, as the case may be, under this Declaration, and
to perform all acts in furtherance thereof, including without limitation, the
following:

                  (i) Each Administrator shall have the power, duty and
            authority, and is hereby authorized, to act on behalf of the Trust
            with respect to the following matters:

                        (A) the issuance and sale of the Securities;

                        (B) to acquire the Debentures with the proceeds of the
                  sale of the Securities; provided, however, that the
                  Administrators shall cause legal title to the Debentures to be
                  held of record in the name of the Institutional Trustee for
                  the benefit of the Holders;

                                       -9-
<PAGE>

                        (C) to cause the Trust to enter into, and to execute,
                  deliver and perform on behalf of the Trust, such agreements as
                  may be necessary or desirable in connection with the purposes
                  and function of the Trust, including agreements with the
                  Paying Agent, a Debenture subscription agreement between the
                  Trust and the Sponsor and a Common Securities subscription
                  agreement between the Trust and the Sponsor;

                        (D) ensuring compliance with the Securities Act and
                  applicable state securities or blue sky laws;

                        (E) if and at such time determined solely by the Sponsor
                  at the request of the Holders, assisting in the designation of
                  the Capital Securities for trading in the Private Offering,
                  Resales and Trading through the Automatic Linkages ("PORTAL")
                  system if available;

                        (F) the sending of notices (other than notices of
                  default) and other information regarding the Securities and
                  the Debentures to the Holders in accordance with this
                  Declaration, including notice of any notice received from the
                  Debenture Issuer of its election to defer payments of interest
                  on the Debentures by extending the interest payment period
                  under the Indenture;

                        (G) the appointment of a Paying Agent, Transfer Agent
                  and Registrar in accordance with this Declaration;

                        (H) execution and delivery of the Securities in
                  accordance with this Declaration;

                        (I) execution and delivery of closing certificates
                  pursuant to the Placement Agreement and the application for a
                  taxpayer identification number;

                        (J) unless otherwise determined by the Holders of a
                  Majority in liquidation amount of the Securities or as
                  otherwise required by the Statutory Trust Act, to execute on
                  behalf of the Trust (either acting alone or together with any
                  or all of the Administrators) any documents that the
                  Administrators have the power to execute pursuant to this
                  Declaration;

                        (K) the taking of any action incidental to the foregoing
                  as the Sponsor or an Administrator may from time to time
                  determine is necessary or advisable to give effect to the
                  terms of this Declaration for the benefit of the Holders
                  (without consideration of the effect of any such action on any
                  particular Holder);

                        (L) to establish a record date with respect to all
                  actions to be taken hereunder that require a record date be
                  established, including Distributions, voting rights,
                  redemptions and exchanges, and to issue

                                     -10-
<PAGE>

                  relevant notices to the Holders of Capital Securities and
                  Holders of Common Securities as to such actions and applicable
                  record dates;

                        (M) to duly prepare and file on behalf of the Trust all
                  applicable tax returns and tax information reports that are
                  required to be filed with respect to the Trust;

                        (N) to negotiate the terms of, and the execution and
                  delivery of, the Placement Agreement and the Capital
                  Securities Purchase Agreement related thereto, providing for
                  the sale of the Capital Securities;

                        (O) to employ or otherwise engage employees, agents (who
                  may be designated as officers with titles), managers,
                  contractors, advisors, attorneys and consultants and pay
                  reasonable compensation for such services;

                        (P) to incur expenses that are necessary or incidental
                  to carry out any of the purposes of the Trust;

                        (Q) to give the certificate required by Section
                  314(a)(4) of the Trust Indenture Act to the Institutional
                  Trustee, which certificate may be executed by an
                  Administrator; and

                        (R) to take all action that may be necessary or
                  appropriate for the preservation and the continuation of the
                  Trust's valid existence, rights, franchises and privileges as
                  a statutory trust under the laws of each jurisdiction (other
                  than the State of Delaware) in which such existence is
                  necessary to protect the limited liability of the Holders of
                  the Capital Securities or to enable the Trust to effect the
                  purposes for which the Trust was created.

                  (ii) As among the Trustees and the Administrators, the
            Institutional Trustee shall have the power, duty and authority, and
            is hereby authorized, to act on behalf of the Trust with respect to
            the following matters:

                        (A) the establishment of the Property Account;

                        (B) the receipt of the Debentures;

                        (C) the collection of interest, principal and any other
                  payments made in respect of the Debentures in the Property
                  Account;

                        (D) the distribution through the Paying Agent of amounts
                  owed to the Holders in respect of the Securities;

                        (E) the exercise of all of the rights, powers and
                  privileges of a holder of the Debentures;

                                      -11-

<PAGE>

                        (F) the sending of notices of default and other
                  information regarding the Securities and the Debentures to the
                  Holders in accordance with this Declaration;

                        (G) the distribution of the Trust Property in accordance
                  with the terms of this Declaration;

                        (H) to the extent provided in this Declaration, the
                  winding up of the affairs of and liquidation of the Trust;

                        (I) after any Event of Default (of which the
                  Institutional Trustee has knowledge (as provided in Section
                  2.10(m) hereof)) (provided, that such Event of Default is not
                  by or with respect to the Institutional Trustee), the taking
                  of any action incidental to the foregoing as the Institutional
                  Trustee may from time to time determine is necessary or
                  advisable to give effect to the terms of this Declaration and
                  protect and conserve the Trust Property for the benefit of the
                  Holders (without consideration of the effect of any such
                  action on any particular Holder);

                        (J) to take all action that may be necessary or
                  appropriate for the preservation and the continuation of the
                  Trust's valid existence, rights, franchises and privileges as
                  a statutory trust under the laws of the State of Delaware to
                  protect the limited liability of the Holders of the Capital
                  Securities or to enable the Trust to effect the purposes for
                  which the Trust was created; and

                        (K) to undertake any actions set forth in Section 317(a)
                  of the Trust Indenture Act.

                  (iii) The Institutional Trustee shall have the power and
            authority, and is hereby authorized, to act on behalf of the Trust
            with respect to any of the duties, liabilities, powers or the
            authority of the Administrators set forth in Section 2.6(a)(i)(E)
            and (F) herein but shall not have a duty to do any such act unless
            specifically requested to do so in writing by the Sponsor, and shall
            then be fully protected in acting pursuant to such written request;
            and in the event of a conflict between the action of the
            Administrators and the action of the Institutional Trustee, the
            action of the Institutional Trustee shall prevail.

            (b) So long as this Declaration remains in effect, the Trust (or the
Trustees or Administrators acting on behalf of the Trust) shall not undertake
any business, activities or transaction except as expressly provided herein or
contemplated hereby. In particular, neither the Trustees nor the Administrators
may cause the Trust to (i) acquire any investments or engage in any activities
not authorized by this Declaration, (ii) sell, assign, transfer, exchange,
mortgage, pledge, set-off or otherwise dispose of any of the Trust Property or
interests therein, including to Holders, except as expressly provided herein,
(iii) take any action that would cause (or in the case of the Institutional
Trustee, to the actual knowledge of a Responsible Officer would cause) the Trust
to fail or cease to qualify as a "grantor trust" for United States federal
income tax

                                      -12-

<PAGE>

purposes, (iv) incur any indebtedness for borrowed money or issue any other debt
or (v) take or consent to any action that would result in the placement of a
lien on any of the Trust Property. The Institutional Trustee shall, at the sole
cost and expense of the Trust, defend all claims and demands of all Persons at
any time claiming any lien on any of the Trust Property adverse to the interest
of the Trust or the Holders in their capacity as Holders.

            (c) In connection with the issuance and sale of the Capital
Securities, the Sponsor shall have the right and responsibility to assist the
Trust with respect to, or effect on behalf of the Trust, the following (and any
actions taken by the Sponsor in furtherance of the following prior to the date
of this Declaration are hereby ratified and confirmed in all respects):

                  (i) the taking of any action necessary to obtain an exemption
            from the Securities Act;

                  (ii) the determination of the States in which to take
            appropriate action to qualify or register for sale all or part of
            the Capital Securities and the determination of any and all such
            acts, other than actions which must be taken by or on behalf of the
            Trust, and the advisement of and direction to the Trustees of
            actions they must take on behalf of the Trust, and the preparation
            for execution and filing of any documents to be executed and filed
            by the Trust or on behalf of the Trust, as the Sponsor deems
            necessary or advisable in order to comply with the applicable laws
            of any such States in connection with the sale of the Capital
            Securities; and

                  (iii) the taking of any other actions necessary or desirable
            to carry out any of the foregoing activities.

            (d) Notwithstanding anything herein to the contrary, the
Administrators, the Institutional Trustee and the Holders of a Majority in
liquidation amount of the Common Securities are authorized and directed to
conduct the affairs of the Trust and to operate the Trust so that (i) the Trust
will not be deemed to be an Investment Company (in the case of the Institutional
Trustee, to the actual knowledge of a Responsible Officer), and (ii) the Trust
will not fail to be classified as a grantor trust for United States federal
income tax purposes (in the case of the Institutional Trustee, to the actual
knowledge of a Responsible Officer) and (iii) the Trust will not take any action
inconsistent with the treatment of the Debentures as indebtedness of the
Debenture Issuer for United States federal income tax purposes (in the case of
the Institutional Trustee, to the actual knowledge of a Responsible Officer). In
this connection, the Institutional Trustee, the Administrators and the Holders
of a Majority in liquidation amount of the Common Securities are authorized to
take any action, not inconsistent with applicable laws or this Declaration, as
amended from time to time, that each of the Institutional Trustee, the
Administrators and such Holders determine in their discretion to be necessary or
desirable for such purposes, even if such action adversely affects the interests
of the Holders of the Capital Securities.

            (e) All expenses incurred by the Administrators or the Trustees
pursuant to this Section 2.6 shall be reimbursed by the Sponsor, and the
Trustees shall have no obligations with respect to such expenses.

                                      -13-

<PAGE>

            (f) The assets of the Trust shall consist of the Trust Property.

            (g) Legal title to all Trust Property shall be vested at all times
in the Institutional Trustee (in its capacity as such) and shall be held and
administered by the Institutional Trustee for the benefit of the Trust in
accordance with this Declaration.

            (h) If the Institutional Trustee or any Holder has instituted any
proceeding to enforce any right or remedy under this Declaration and such
proceeding has been discontinued or abandoned for any reason, or has been
determined adversely to the Institutional Trustee or to such Holder, then and in
every such case the Sponsor, the Institutional Trustee and the Holders shall,
subject to any determination in such proceeding, be restored severally and
respectively to their former positions hereunder, and thereafter all rights and
remedies of the Institutional Trustee and the Holders shall continue as though
no such proceeding had been instituted.

      SECTION 2.7. Prohibition of Actions by the Trust and the Trustees. The
Trust shall not, and the Institutional Trustee and the Administrators shall not,
and the Administrators shall cause the Trust not to, engage in any activity
other than as required or authorized by this Declaration. In particular, the
Trust shall not, and the Institutional Trustee and the Administrators shall not
cause the Trust to:

            (a) invest any proceeds received by the Trust from holding the
Debentures, but shall distribute all such proceeds to Holders of the Securities
pursuant to the terms of this Declaration and of the Securities;

            (b) acquire any assets other than as expressly provided herein;

            (c) possess Trust Property for other than a Trust purpose;

            (d) make any loans or incur any indebtedness other than loans
represented by the Debentures;

            (e) possess any power or otherwise act in such a way as to vary the
Trust Property or the terms of the Securities;

            (f) issue any securities or other evidences of beneficial ownership
of, or beneficial interest in, the Trust other than the Securities; or

            (g) other than as provided in this Declaration (including Annex I),
(i) direct the time, method and place of exercising any trust or power conferred
upon the Debenture Trustee with respect to the Debentures, (ii) waive any past
default that is waivable under the Indenture, (iii) exercise any right to
rescind or annul any declaration that the principal of all the Debentures shall
be due and payable, or (iv) consent to any amendment, modification or
termination of the Indenture or the Debentures where such consent shall be
required unless the Trust shall have received a written opinion of counsel
experienced in such matters to the effect that such amendment, modification or
termination will not cause the Trust to cease to be classified as a grantor
trust for United States federal income tax purposes.

                                      -14-

<PAGE>

      SECTION 2.8. Powers and Duties of the Institutional Trustee.

            (a) The legal title to the Debentures shall be owned by and held of
record in the name of the Institutional Trustee in trust for the benefit of the
Trust. The right, title and interest of the Institutional Trustee to the
Debentures shall vest automatically in each Person who may hereafter be
appointed as Institutional Trustee in accordance with Section 4.7. Such vesting
and cessation of title shall be effective whether or not conveyancing documents
with regard to the Debentures have been executed and delivered.

            (b) The Institutional Trustee shall not transfer its right, title
and interest in the Debentures to the Administrators or to the Delaware Trustee.

            (c) The Institutional Trustee shall:

                  (i) establish and maintain a segregated non-interest bearing
            trust account (the "Property Account") in the United States (as
            defined in Treasury Regulations Section 301.7701-7), in the name of
            and under the exclusive control of the Institutional Trustee, and
            maintained in the Institutional Trustee's trust department, on
            behalf of the Holders of the Securities and, upon the receipt of
            payments of funds made in respect of the Debentures held by the
            Institutional Trustee, deposit such funds into the Property Account
            and make payments to the Holders of the Capital Securities and
            Holders of the Common Securities from the Property Account in
            accordance with Section 5.1. Funds in the Property Account shall be
            held uninvested until disbursed in accordance with this Declaration;

                  (ii) engage in such ministerial activities as shall be
            necessary or appropriate to effect the redemption of the Capital
            Securities and the Common Securities to the extent the Debentures
            are redeemed or mature; and

                  (iii) upon written notice of distribution issued by the
            Administrators in accordance with the terms of the Securities,
            engage in such ministerial activities as shall be necessary or
            appropriate to effect the distribution of the Debentures to Holders
            of Securities upon the occurrence of certain circumstances pursuant
            to the terms of the Securities.

            (d) The Institutional Trustee shall take all actions and perform
such duties as may be specifically required of the Institutional Trustee
pursuant to the terms of the Securities.

            (e) The Institutional Trustee may bring or defend, pay, collect,
compromise, arbitrate, resort to legal action with respect to, or otherwise
adjust claims or demands of or against, the Trust (a "Legal Action") which arise
out of or in connection with an Event of Default of which a Responsible Officer
of the Institutional Trustee has actual knowledge or the Institutional Trustee's
duties and obligations under this Declaration or the Trust Indenture Act;
provided, however, that if an Event of Default has occurred and is continuing
and such event is attributable to the failure of the Debenture Issuer to pay
interest or premium, if any, on or principal of the Debentures on the date such
interest, premium, if any, or principal is otherwise payable (or in the case of
redemption, on the redemption date), then a Holder of the Capital Securities may
directly institute a proceeding for enforcement of payment to such Holder of the

                                      -15-

<PAGE>

principal of or premium, if any, or interest on the Debentures having a
principal amount equal to the aggregate liquidation amount of the Capital
Securities of such Holder (a "Direct Action") on or after the respective due
date specified in the Debentures. In connection with such Direct Action, the
rights of the Holders of the Common Securities will be subrogated to the rights
of such Holder of the Capital Securities to the extent of any payment made by
the Debenture Issuer to such Holder of the Capital Securities in such Direct
Action; provided, however, that a Holder of the Common Securities may exercise
such right of subrogation only if no Event of Default with respect to the
Capital Securities has occurred and is continuing.

            (f) The Institutional Trustee shall continue to serve as a Trustee
until either:

                  (i) the Trust has been completely liquidated and the proceeds
            of the liquidation distributed to the Holders of the Securities
            pursuant to the terms of the Securities and this Declaration
            (including Annex I) and the certificate of cancellation referenced
            in Section 7.1(b) has been filed; or

                  (ii) a Successor Institutional Trustee has been appointed and
            has accepted that appointment in accordance with Section 4.7.

            (g) The Institutional Trustee shall have the legal power to exercise
all of the rights, powers and privileges of a holder of the Debentures under the
Indenture and, if an Event of Default occurs and is continuing, the
Institutional Trustee may, for the benefit of Holders of the Securities, enforce
its rights as holder of the Debentures subject to the rights of the Holders
pursuant to this Declaration (including Annex I) and the terms of the
Securities.

            (h) The Institutional Trustee must exercise the powers set forth in
this Section 2.8 in a manner that is consistent with the purposes and functions
of the Trust set out in Section 2.3, and the Institutional Trustee shall not
take any action that is inconsistent with the purposes and functions of the
Trust set out in Section 2.3.

      SECTION 2.9. Certain Duties and Responsibilities of the Trustees and the
Administrators.

            (a) The Institutional Trustee, before the occurrence of any Event of
Default (of which the Institutional Trustee has knowledge (as provided in
Section 2.10(m) hereof)) and after the curing of all Events of Default that may
have occurred, shall undertake to perform only such duties as are specifically
set forth in this Declaration and no implied covenants shall be read into this
Declaration against the Institutional Trustee. In case an Event of Default (of
which the Institutional Trustee has knowledge (as provided in Section 2.10(m)
hereof)), has occurred (that has not been cured or waived pursuant to Section
6.8), the Institutional Trustee shall exercise such of the rights and powers
vested in it by this Declaration, and use the same degree of care and skill in
their exercise, as a prudent person would exercise or use under the
circumstances in the conduct of his or her own affairs.

            (b) The duties and responsibilities of the Trustees and the
Administrators shall be as provided by this Declaration and, in the case of the
Institutional Trustee, by the Trust Indenture Act. Notwithstanding the
foregoing, no provision of this Declaration shall require any Trustee or
Administrator to expend or risk its own funds or otherwise incur any financial
liability

                                      -16-

<PAGE>

in the performance of any of its duties hereunder, or in the exercise of any of
its rights or powers, if it shall have reasonable grounds for believing that
repayment of such funds or adequate indemnity satisfactory to it against such
risk or liability is not reasonably assured to it. Whether or not therein
expressly so provided, every provision of this Declaration relating to the
conduct or affecting the liability of or affording protection to the Trustees or
the Administrators shall be subject to the provisions of this Article. Nothing
in this Declaration shall be construed to release a Trustee from liability for
its own negligent action, its own negligent failure to act, or its own willful
misconduct or bad faith. Nothing in this Declaration shall be construed to
release an Administrator from liability for its own gross negligent action, its
own gross negligent failure to act, or its own willful misconduct or bad faith.
To the extent that, at law or in equity, a Trustee or an Administrator has
duties and liabilities relating to the Trust or to the Holders, such Trustee or
Administrator shall not be liable to the Trust or to any Holder for such
Trustee's or Administrator's good faith reliance on the provisions of this
Declaration. The provisions of this Declaration, to the extent that they
restrict the duties and liabilities of the Administrators or the Trustees
otherwise existing at law or in equity, are agreed by the Sponsor and the
Holders to replace such other duties and liabilities of the Administrators or
the Trustees.

            (c) All payments made by the Institutional Trustee or a Paying Agent
in respect of the Securities shall be made only from the revenue and proceeds
from the Trust Property and only to the extent that there shall be sufficient
revenue or proceeds from the Trust Property to enable the Institutional Trustee
or a Paying Agent to make payments in accordance with the terms hereof. Each
Holder, by its acceptance of a Security, agrees that it will look solely to the
revenue and proceeds from the Trust Property to the extent legally available for
distribution to it as herein provided and that the Trustees and the
Administrators are not personally liable to it for any amount distributable in
respect of any Security or for any other liability in respect of any Security.
This Section 2.9(c) does not limit the liability of the Trustees expressly set
forth elsewhere in this Declaration or, in the case of the Institutional
Trustee, in the Trust Indenture Act.

            (d) No provision of this Declaration shall be construed to relieve
the Institutional Trustee from liability for its own negligent action, its own
negligent failure to act, or its own willful misconduct or bad faith with
respect to matters that are within the authority of the Institutional Trustee
under this Declaration, except that:

                  (i) the Institutional Trustee shall not be liable for any
            error or judgment made in good faith by a Responsible Officer of the
            Institutional Trustee, unless it shall be proved that the
            Institutional Trustee was negligent in ascertaining the pertinent
            facts;

                  (ii) the Institutional Trustee shall not be liable with
            respect to any action taken or omitted to be taken by it in good
            faith in accordance with the direction of the Holders of not less
            than a Majority in liquidation amount of the Capital Securities or
            the Common Securities, as applicable, relating to the time, method
            and place of conducting any proceeding for any remedy available to
            the Institutional Trustee, or exercising any trust or power
            conferred upon the Institutional Trustee under this Declaration;

                                      -17-

<PAGE>

                  (iii) the Institutional Trustee's sole duty with respect to
            the custody, safe keeping and physical preservation of the
            Debentures and the Property Account shall be to deal with such
            property in a similar manner as the Institutional Trustee deals with
            similar property for its own account, subject to the protections and
            limitations on liability afforded to the Institutional Trustee under
            this Declaration and the Trust Indenture Act;

                  (iv) the Institutional Trustee shall not be liable for any
            interest on any money received by it except as it may otherwise
            agree in writing with the Sponsor; and money held by the
            Institutional Trustee need not be segregated from other funds held
            by it except in relation to the Property Account maintained by the
            Institutional Trustee pursuant to Section 2.8(c)(i) and except to
            the extent otherwise required by law; and

                  (v) the Institutional Trustee shall not be responsible for
            monitoring the compliance by the Administrators or the Sponsor with
            their respective duties under this Declaration, nor shall the
            Institutional Trustee be liable for any default or misconduct of the
            Administrators or the Sponsor.

      SECTION 2.10. Certain Rights of Institutional Trustee. Subject to the
provisions of Section 2.9.

            (a) the Institutional Trustee may conclusively rely and shall fully
be protected in acting or refraining from acting in good faith upon any
resolution, written opinion of counsel, certificate, written representation of a
Holder or transferee, certificate of auditors or any other certificate,
statement, instrument, opinion, report, notice, request, direction, consent,
order, appraisal, bond, debenture, note, other evidence of indebtedness or other
paper or document believed by it to be genuine and to have been signed, sent or
presented by the proper party or parties;

            (b) if (i) in performing its duties under this Declaration, the
Institutional Trustee is required to decide between alternative courses of
action, (ii) in construing any of the provisions of this Declaration, the
Institutional Trustee finds the same ambiguous or inconsistent with any other
provisions contained herein, or (iii) the Institutional Trustee is unsure of the
application of any provision of this Declaration, then, except as to any matter
as to which the Holders of Capital Securities are entitled to vote under the
terms of this Declaration, the Institutional Trustee may deliver a notice to the
Sponsor requesting the Sponsor's opinion as to the course of action to be taken
and the Institutional Trustee shall take such action, or refrain from taking
such action, as the Institutional Trustee in its sole discretion shall deem
advisable and in the best interests of the Holders, in which event the
Institutional Trustee shall have no liability except for its own negligence or
willful misconduct;

            (c) any direction or act of the Sponsor or the Administrators
contemplated by this Declaration shall be sufficiently evidenced by an Officers'
Certificate;

            (d) whenever in the administration of this Declaration, the
Institutional Trustee shall deem it desirable that a matter be proved or
established before undertaking,

                                      -18-

<PAGE>

suffering or omitting any action hereunder, the Institutional Trustee (unless
other evidence is herein specifically prescribed) may, in the absence of bad
faith on its part, request and conclusively rely upon an Officers' Certificate
which, upon receipt of such request, shall be promptly delivered by the Sponsor
or the Administrators;

            (e) the Institutional Trustee shall have no duty to see to any
recording, filing or registration of any instrument (including any financing or
continuation statement or any filing under tax or securities laws) or any
rerecording, refiling or reregistration thereof;

            (f) the Institutional Trustee may consult with counsel of its
selection (which counsel may be counsel to the Sponsor or any of its Affiliates)
and the advice of such counsel shall be full and complete authorization and
protection in respect of any action taken, suffered or omitted by it hereunder
in good faith and in reliance thereon and in accordance with such advice; the
Institutional Trustee shall have the right at any time to seek instructions
concerning the administration of this Declaration from any court of competent
jurisdiction;

            (g) the Institutional Trustee shall be under no obligation to
exercise any of the rights or powers vested in it by this Declaration at the
request or direction of any of the Holders pursuant to this Declaration, unless
such Holders shall have offered to the Institutional Trustee security or
indemnity reasonably satisfactory to it against the costs, expenses and
liabilities which might be incurred by it in compliance with such request or
direction; provided, that nothing contained in this Section 2.10(g) shall be
taken to relieve the Institutional Trustee, upon the occurrence of an Event of
Default (of which the Institutional Trustee has knowledge (as provided in
Section 2.10(m) hereof)) that has not been cured or waived, of its obligation to
exercise the rights and powers vested in it by this Declaration;

            (h) the Institutional Trustee shall not be bound to make any
investigation into the facts or matters stated in any resolution, certificate,
statement, instrument, opinion, report, notice, request, consent, order,
approval, bond, debenture, note or other evidence of indebtedness or other paper
or document, unless requested in writing to do so by one or more Holders, but
the Institutional Trustee may make such further inquiry or investigation into
such facts or matters as it may see fit;

            (i) the Institutional Trustee may execute any of the trusts or
powers hereunder or perform any duties hereunder either directly or by or
through its agents or attorneys and the Institutional Trustee shall not be
responsible for any misconduct or negligence on the part of, or for the
supervision of, any such agent or attorney appointed with due care by it
hereunder;

            (j) whenever in the administration of this Declaration the
Institutional Trustee shall deem it desirable to receive instructions with
respect to enforcing any remedy or right or taking any other action hereunder,
the Institutional Trustee (i) may request instructions from the Holders of the
Common Securities and the Capital Securities, which instructions may be given
only by the Holders of the same proportion in liquidation amount of the Common
Securities and the Capital Securities as would be entitled to direct the
Institutional Trustee under the terms of the Common Securities and the Capital
Securities in respect of such remedy, right or action, (ii) may refrain from
enforcing such remedy or right or taking such other action until such

                                      -19-

<PAGE>

instructions are received, and (iii) shall be fully protected in acting in
accordance with such instructions;

            (k) except as otherwise expressly provided in this Declaration, the
Institutional Trustee shall not be under any obligation to take any action that
is discretionary under the provisions of this Declaration;

            (l) when the Institutional Trustee incurs expenses or renders
services in connection with a Bankruptcy Event, such expenses (including the
fees and expenses of its counsel) and the compensation for such services are
intended to constitute expenses of administration under any bankruptcy law or
law relating to creditors rights generally;

            (m) the Institutional Trustee shall not be charged with knowledge of
an Event of Default unless a Responsible Officer of the Institutional Trustee
has actual knowledge of such event or the Institutional Trustee receives written
notice of such event from any Holder, except with respect to an Event of Default
pursuant to Sections 5.01(a), 5.01(b) or 5.01(c) of the Indenture (other than an
Event of Default resulting from the default in the payment of Additional
Interest or premium, if any, if the Institutional Trustee does not have actual
knowledge or written notice that such payment is due and payable), of which the
Institutional Trustee shall be deemed to have knowledge;

            (n) any action taken by the Institutional Trustee or its agents
hereunder shall bind the Trust and the Holders of the Securities, and the
signature of the Institutional Trustee or its agents alone shall be sufficient
and effective to perform any such action and no third party shall be required to
inquire as to the authority of the Institutional Trustee to so act or as to its
compliance with any of the terms and provisions of this Declaration, both of
which shall be conclusively evidenced by the Institutional Trustee's or its
agent's taking such action; and

            (o) no provision of this Declaration shall be deemed to impose any
duty or obligation on the Institutional Trustee to perform any act or acts or
exercise any right, power, duty or obligation conferred or imposed on it, in any
jurisdiction in which it shall be illegal, or in which the Institutional Trustee
shall be unqualified or incompetent in accordance with applicable law, to
perform any such act or acts, or to exercise any such right, power, duty or
obligation. No permissive power or authority available to the Institutional
Trustee shall be construed to be a duty.

      SECTION 2.11. Delaware Trustee. Notwithstanding any other provision of
this Declaration other than Section 4.2, the Delaware Trustee shall not be
entitled to exercise any powers, nor shall the Delaware Trustee have any of the
duties and responsibilities of any of the Trustees or the Administrators
described in this Declaration (except as may be required under the Statutory
Trust Act). Except as set forth in Section 4.2, the Delaware Trustee shall be a
Trustee for the sole and limited purpose of fulfilling the requirements of
Section 3807 of the Statutory Trust Act.

      SECTION 2.12. Execution of Documents. Unless otherwise determined in
writing by the Institutional Trustee, and except as otherwise required by the
Statutory Trust Act, the Institutional Trustee, or any one or more of the
Administrators, as the case may be, is authorized

                                      -20-
<PAGE>

to execute and deliver on behalf of the Trust any documents, agreements,
instruments or certificates that the Trustees or the Administrators, as the case
may be, have the power and authority to execute pursuant to Section 2.6.

      SECTION 2.13. Not Responsible for Recitals or Issuance of Securities. The
recitals contained in this Declaration and the Securities shall be taken as the
statements of the Sponsor, and the Trustees do not assume any responsibility for
their correctness. The Trustees make no representations as to the value or
condition of the property of the Trust or any part thereof. The Trustees make no
representations as to the validity or sufficiency of this Declaration, the
Debentures or the Securities.

      SECTION 2.14. Duration of Trust. The Trust, unless dissolved pursuant to
the provisions of Article VII hereof, shall have existence for thirty-five (35)
years from the Closing Date.

      SECTION 2.15. Mergers.

            (a)   The Trust may not consolidate, amalgamate, merge with or into,
or be replaced by, or convey, transfer or lease its properties and assets
substantially as an entirety to any corporation or other Person, except as
described in this Section 2.15 and except with respect to the distribution of
Debentures to Holders of Securities pursuant to Section 7.1(a)(iv) of the
Declaration or Section 4 of Annex I.

            (b)   The Trust may, with the consent of the Administrators (which
consent will not be unreasonably withheld) and without the consent of the
Institutional Trustee, the Delaware Trustee or the Holders of the Capital
Securities, consolidate, amalgamate, merge with or into, or be replaced by, or
convey, transfer or lease its properties and assets as an entirety or
substantially as an entirety to a trust organized as such under the laws of any
state; provided, that:

                  (i)   if the Trust is not the survivor, such successor entity
            (the "Successor Entity") either:

                        (A) expressly assumes all of the obligations of the
                  Trust under the Securities; or

                        (B) substitutes for the Securities other securities
                  having substantially the same terms as the Securities (the
                  "Successor Securities") so that the Successor Securities rank
                  the same as the Securities rank with respect to Distributions
                  and payments upon Liquidation, redemption and otherwise;

                  (ii)  the Sponsor expressly appoints a trustee of the
            Successor Entity that possesses the same powers and duties as the
            Institutional Trustee;

                  (iii) the Capital Securities or any Successor Securities
            (excluding any securities substituted for the Common Securities) are
            listed or quoted, or any Successor Securities will be listed or
            quoted upon notification of issuance, on any

                                      -21-
<PAGE>

            national securities exchange or with another organization on which
            the Capital Securities are then listed or quoted, if any;

                  (iv)  such merger, consolidation, amalgamation, replacement,
            conveyance, transfer or lease does not cause the Capital Securities
            (including any Successor Securities) to be downgraded by any
            nationally recognized statistical rating organization, if the
            Capital Securities are then rated;

                  (v)   such merger, consolidation, amalgamation, replacement,
            conveyance, transfer or lease does not adversely affect the rights,
            preferences and privileges of the Holders of the Securities
            (including any Successor Securities) in any material respect (other
            than with respect to any dilution of such Holders' interests in the
            Successor Entity as a result of such merger, consolidation,
            amalgamation or replacement);

                  (vi)  such Successor Entity has a purpose substantially
            identical to that of the Trust;

                  (vii) prior to such merger, consolidation, amalgamation,
            replacement, conveyance, transfer or lease, the Trust has received a
            written opinion of a nationally recognized independent counsel to
            the Trust experienced in such matters to the effect that:

                        (A) such merger, consolidation, amalgamation,
                  replacement, conveyance, transfer or lease does not adversely
                  affect the rights, preferences and privileges of the Holders
                  of the Securities (including any Successor Securities) in any
                  material respect (other than with respect to any dilution of
                  the Holders' interests in the Successor Entity);

                        (B) following such merger, consolidation, amalgamation,
                  replacement, conveyance, transfer or lease, neither the Trust
                  nor the Successor Entity will be required to register as an
                  Investment Company; and

                        (C) following such merger, consolidation, amalgamation,
                  replacement, conveyance, transfer or lease, the Trust (or the
                  Successor Entity) will continue to be classified as a grantor
                  trust for United States federal income tax purposes;

                  (viii) the Sponsor guarantees the obligations of such
            Successor Entity under the Successor Securities to the same extent
            provided by the Guarantee, the Debentures and this Declaration; and

                  (ix)  prior to such merger, consolidation, amalgamation,
            replacement, conveyance, transfer or lease, the Institutional
            Trustee shall have received an Officers' Certificate of the
            Administrators and an opinion of counsel, each to the effect that
            all conditions precedent of this paragraph (b) to such transaction
            have been satisfied.

                                      -22-
<PAGE>

            (c)   Notwithstanding Section 2.15(b), the Trust shall not, except
with the consent of Holders of 100% in liquidation amount of the Securities,
consolidate, amalgamate, merge with or into, or be replaced by, or convey,
transfer or lease its properties and assets as an entirety or substantially as
an entirety to, any other Person or permit any other Person to consolidate,
amalgamate, merge with or into, or replace it if such consolidation,
amalgamation, merger, replacement, conveyance, transfer or lease would cause the
Trust or Successor Entity to be classified as other than a grantor trust for
United States federal income tax purposes.

                                  ARTICLE III
                                     SPONSOR

      SECTION 3.1. Sponsor's Purchase of Common Securities. On the Closing Date,
the Sponsor will purchase all of the Common Securities issued by the Trust, in
an amount at least equal to 3% of the capital of the Trust, at the same time as
the Capital Securities are sold.

      SECTION 3.2. Responsibilities of the Sponsor. In connection with the issue
and sale of the Capital Securities, the Sponsor shall have the exclusive right
and responsibility and sole decision to engage in, or direct the Administrators
to engage in, the following activities:

            (a)   to determine the States in which to take appropriate action to
qualify or register for sale of all or part of the Capital Securities and to do
any and all such acts, other than actions which must be taken by the Trust, and
advise the Trust of actions it must take, and prepare for execution and filing
any documents to be executed and filed by the Trust, as the Sponsor deems
necessary or advisable in order to comply with the applicable laws of any such
States;

            (b)   to prepare for filing and request the Administrators to cause
the filing by the Trust, as may be appropriate, of an application to the PORTAL
system, for listing or quotation upon notice of issuance of any Capital
Securities, as requested by the Holders of not less than a Majority in
liquidation amount of the Capital Securities; and

            (c)   to negotiate the terms of and/or execute and deliver on behalf
of the Trust, the Placement Agreement and other related agreements providing for
the sale of the Capital Securities.

                                   ARTICLE IV
                          TRUSTEES AND ADMINISTRATORS

      SECTION 4.1. Number of Trustees. The number of Trustees initially shall be
two, and:

            (a)   at any time before the issuance of any Securities, the Sponsor
may, by written instrument, increase or decrease the number of Trustees; and

            (b)   after the issuance of any Securities, the number of Trustees
may be increased or decreased by vote of the Holder of a Majority in liquidation
amount of the Common Securities voting as a class at a meeting of the Holder of
the Common Securities; provided, however, that there shall be a Delaware Trustee
if required by Section 4.2; and there shall always be one Trustee who shall be
the Institutional Trustee, and such Trustee may also serve as

                                      -23-
<PAGE>

Delaware Trustee if it meets the applicable requirements, in which case Section
2.11 shall have no application to such entity in its capacity as Institutional
Trustee.

      SECTION 4.2. Delaware Trustee. If required by the Statutory Trust Act, one
Trustee (the "Delaware Trustee") shall be:

            (a)   a natural person who is a resident of the State of Delaware;
or

            (b)   if not a natural person, an entity which is organized under
the laws of the United States or any state thereof or the District of Columbia,
has its principal place of business in the State of Delaware, and otherwise
meets the requirements of applicable law, including Section 3807 of the
Statutory Trust Act.

      SECTION 4.3. Institutional Trustee; Eligibility.

            (a)   There shall at all times be one Trustee which shall act as
Institutional Trustee which shall:

                  (i)   not be an Affiliate of the Sponsor;

                  (ii)  not offer or provide credit or credit enhancement to the
            Trust; and

                  (iii) be a banking corporation or national association
            organized and doing business under the laws of the United States of
            America or any state thereof or of the District of Columbia and
            authorized under such laws to exercise corporate trust powers,
            having a combined capital and surplus of at least fifty million U.S.
            dollars ($50,000,000), and subject to supervision or examination by
            federal, state or District of Columbia authority. If such
            corporation or national association publishes reports of condition
            at least annually, pursuant to law or to the requirements of the
            supervising or examining authority referred to above, then for the
            purposes of this Section 4.3(a)(iii), the combined capital and
            surplus of such corporation or national association shall be deemed
            to be its combined capital and surplus as set forth in its most
            recent report of condition so published.

            (b)   If at any time the Institutional Trustee shall cease to be
eligible to so act under Section 4.3(a), the Institutional Trustee shall
immediately resign in the manner and with the effect set forth in Section 4.7.

            (c)   If the Institutional Trustee has or shall acquire any
"conflicting interest" within the meaning of Section 310(b) of the Trust
Indenture Act, the Institutional Trustee shall either eliminate such interest or
resign, to the extent and in the manner provided by, and subject to this
Declaration.

            (d)   The initial Institutional Trustee shall be JPMorgan Chase
Bank, National Association.

                                      -24-
<PAGE>

      SECTION 4.4. Certain Qualifications of the Delaware Trustee Generally. The
Delaware Trustee shall be a U.S. Person and either a natural person who is at
least 21 years of age or a legal entity that shall act through one or more
Authorized Officers.

      SECTION 4.5. Administrators. Each Administrator shall be a U.S. Person.

      There shall at all times be at least one Administrator. Except where a
requirement for action by a specific number of Administrators is expressly set
forth in this Declaration and except with respect to any action the taking of
which is the subject of a meeting of the Administrators, any action required or
permitted to be taken by the Administrators may be taken by, and any power of
the Administrators may be exercised by, or with the consent of, any one such
Administrator acting alone.

      SECTION 4.6. Initial Delaware Trustee. The initial Delaware Trustee shall
be Chase Bank USA, National Association.

      SECTION 4.7. Appointment, Removal and Resignation of the Trustees and the
Administrators.

            (a)   No resignation or removal of any Trustee (the "Relevant
Trustee") and no appointment of a successor Trustee pursuant to this Article
shall become effective until the acceptance of appointment by the successor
Trustee in accordance with the applicable requirements of this Section 4.7.

            (b)   Subject to Section 4.7(a), a Relevant Trustee may resign at
any time by giving written notice thereof to the Holders of the Securities and
by appointing a successor Relevant Trustee, except in the case of the Delaware
Trustee's successor which shall be appointed by Holders of a Majority in
liquidation amount of the Common Securities. Upon the resignation of the
Institutional Trustee, the Institutional Trustee shall appoint a successor by
requesting from at least three Persons meeting the eligibility requirements
their expenses and charges to serve as the successor Institutional Trustee on a
form provided by the Administrators, and selecting the Person who agrees to the
lowest reasonable expense and charges (the "Successor Institutional Trustee").
If the instrument of acceptance by the successor Relevant Trustee required by
this Section 4.7 shall not have been delivered to the Relevant Trustee within 60
days after the giving of such notice of resignation or delivery of the
instrument of removal, the Relevant Trustee may petition, at the expense of the
Trust, any federal, state or District of Columbia court of competent
jurisdiction for the appointment of a successor Relevant Trustee. Such court may
thereupon, after prescribing such notice, if any, as it may deem proper, appoint
a Relevant Trustee. The Institutional Trustee shall have no liability for the
selection of such successor pursuant to this Section 4.7.

            (c)   Unless an Event of Default shall have occurred and be
continuing, any Trustee may be removed at any time by an act of the Holders of a
Majority in liquidation amount of the Common Securities. If any Trustee shall be
so removed, the Holders of the Common Securities, by act of the Holders of a
Majority in liquidation amount of the Common Securities delivered to the
Relevant Trustee, shall promptly appoint a successor Relevant Trustee, and such
successor Trustee shall comply with the applicable requirements of this Section
4.7. If an Event

                                      -25-
<PAGE>

of Default shall have occurred and be continuing, the Institutional Trustee or
the Delaware Trustee, or both of them, may be removed by the act of the Holders
of a Majority in liquidation amount of the Capital Securities, delivered to the
Relevant Trustee (in its individual capacity and on behalf of the Trust). If any
Trustee shall be so removed, the Holders of Capital Securities, by act of the
Holders of a Majority in liquidation amount of the Capital Securities then
outstanding delivered to the Relevant Trustee, shall promptly appoint a
successor Relevant Trustee or Trustees, and such successor Trustee shall comply
with the applicable requirements of this Section 4.7. If no successor Relevant
Trustee shall have been so appointed by the Holders of a Majority in liquidation
amount of the Capital Securities and accepted appointment in the manner required
by this Section 4.7 within 30 days after delivery of an instrument of removal,
the Relevant Trustee or any Holder who has been a Holder of the Securities for
at least six months may, on behalf of himself and all others similarly situated,
petition any federal, state or District of Columbia court of competent
jurisdiction for the appointment of a successor Relevant Trustee. Such court may
thereupon, after prescribing such notice, if any, as it may deem proper, appoint
a successor Relevant Trustee or Trustees.

            (d)   The Institutional Trustee shall give notice of each
resignation and each removal of a Trustee and each appointment of a successor
Trustee to all Holders and to the Sponsor. Each notice shall include the name of
the successor Relevant Trustee and the address of its Corporate Trust Office if
it is the Institutional Trustee.

            (e)   Notwithstanding the foregoing or any other provision of this
Declaration, in the event a Delaware Trustee who is a natural person dies or is
adjudged by a court to have become incompetent or incapacitated, the vacancy
created by such death, incompetence or incapacity may be filled by the
Institutional Trustee (provided the Institutional Trustee satisfies the
requirements of a Delaware Trustee as set forth in Section 4.2) following the
procedures in this Section 4.7 (with the successor being a Person who satisfies
the eligibility requirement for a Delaware Trustee set forth in this
Declaration) (the "Successor Delaware Trustee").

            (f)   In case of the appointment hereunder of a successor Relevant
Trustee, the retiring Relevant Trustee and each successor Relevant Trustee with
respect to the Securities shall execute and deliver an amendment hereto wherein
each successor Relevant Trustee shall accept such appointment and which (a)
shall contain such provisions as shall be necessary or desirable to transfer and
confirm to, and to vest in, each successor Relevant Trustee all the rights,
powers, trusts and duties of the retiring Relevant Trustee with respect to the
Securities and the Trust and (b) shall add to or change any of the provisions of
this Declaration as shall be necessary to provide for or facilitate the
administration of the Trust by more than one Relevant Trustee, it being
understood that nothing herein or in such amendment shall constitute such
Relevant Trustees co-trustees and upon the execution and delivery of such
amendment the resignation or removal of the retiring Relevant Trustee shall
become effective to the extent provided therein and each such successor Relevant
Trustee, without any further act, deed or conveyance, shall become vested with
all the rights, powers, trusts and duties of the retiring Relevant Trustee; but,
on request of the Trust or any successor Relevant Trustee, such retiring
Relevant Trustee shall duly assign, transfer and deliver to such successor
Relevant Trustee all Trust Property, all proceeds thereof and money held by such
retiring Relevant Trustee hereunder with respect to the Securities and the Trust
subject to the payment of all unpaid fees, expenses and indemnities of such
retiring Relevant Trustee.

                                      -26-
<PAGE>

            (g)   No Institutional Trustee or Delaware Trustee shall be liable
for the acts or omissions to act of any Successor Institutional Trustee or
Successor Delaware Trustee, as the case may be.

            (h)   The Holders of the Capital Securities will have no right to
vote to appoint, remove or replace the Administrators, which voting rights are
vested exclusively in the Holders of the Common Securities.

            (i)   Any successor Delaware Trustee shall file an amendment to the
Certificate of Trust with the Secretary of State of the State of Delaware
identifying the name and principal place of business of such Delaware Trustee in
the State of Delaware.

      SECTION 4.8. Vacancies Among Trustees. If a Trustee ceases to hold office
for any reason and the number of Trustees is not reduced pursuant to Section
4.1, or if the number of Trustees is increased pursuant to Section 4.1, a
vacancy shall occur. A resolution certifying the existence of such vacancy by
the Trustees or, if there are more than two, a majority of the Trustees shall be
conclusive evidence of the existence of such vacancy. The vacancy shall be
filled with a Trustee appointed in accordance with Section 4.7.

      SECTION 4.9. Effect of Vacancies. The death, resignation, retirement,
removal, bankruptcy, dissolution, liquidation, incompetence or incapacity to
perform the duties of a Trustee shall not operate to dissolve, terminate or
annul the Trust or terminate this Declaration. Whenever a vacancy in the number
of Trustees shall occur, until such vacancy is filled by the appointment of a
Trustee in accordance with Section 4.7, the Institutional Trustee shall have all
the powers granted to the Trustees and shall discharge all the duties imposed
upon the Trustees by this Declaration.

      SECTION 4.10. Meetings of the Trustees and the Administrators. Meetings of
the Trustees or the Administrators shall be held from time to time upon the call
of any Trustee or Administrator, as applicable. Regular meetings of the Trustees
and the Administrators, respectively, may be in person in the United States or
by telephone, at a place (if applicable) and time fixed by resolution of the
Trustees or the Administrators, as applicable. Notice of any in-person meetings
of the Trustees or the Administrators shall be hand delivered or otherwise
delivered in writing (including by facsimile, with a hard copy by overnight
courier) not less than 48 hours before such meeting. Notice of any telephonic
meetings of the Trustees or the Administrators or any committee thereof shall be
hand delivered or otherwise delivered in writing (including by facsimile, with a
hard copy by overnight courier) not less than 24 hours before a meeting. Notices
shall contain a brief statement of the time, place and anticipated purposes of
the meeting. The presence (whether in person or by telephone) of a Trustee or an
Administrator, as the case may be, at a meeting shall constitute a waiver of
notice of such meeting except where a Trustee or an Administrator, as the case
may be, attends a meeting for the express purpose of objecting to the
transaction of any activity on the ground that the meeting has not been lawfully
called or convened. Unless provided otherwise in this Declaration, any action of
the Trustees or the Administrators, as the case may be, may be taken at a
meeting by vote of a majority of the Trustees or the Administrators present
(whether in person or by telephone) and eligible to vote with respect to such
matter; provided, that, in the case of the Administrators, a Quorum is present,
or without a meeting by the unanimous written consent of

                                      -27-
<PAGE>

the Trustees or the Administrators, as the case may be. Meetings of the Trustees
and the Administrators together shall be held from time to time upon the call of
any Trustee or Administrator.

      SECTION 4.11. Delegation of Power.

            (a)   Any Trustee or any Administrator, as the case may be, may, by
power of attorney consistent with applicable law, delegate to any other natural
person over the age of 21 that is a U.S. Person his or her power for the purpose
of executing any documents, instruments or other writings contemplated in
Section 2.6.

            (b)   The Trustees shall have power to delegate from time to time to
such of their number or to any officer of the Trust that is a U.S. Person, the
doing of such things and the execution of such instruments or other writings
either in the name of the Trust or the names of the Trustees or otherwise as the
Trustees may deem expedient, to the extent such delegation is not prohibited by
applicable law or contrary to the provisions of the Trust, as set forth herein.

      SECTION 4.12. Merger, Conversion, Consolidation or Succession to Business.
Any Person into which the Institutional Trustee or the Delaware Trustee, as the
case maybe, may be merged or converted or with which either may be consolidated,
or any Person resulting from any merger, conversion or consolidation to which
the Institutional Trustee or the Delaware Trustee, as the case may be, shall be
a party, or any Person succeeding to all or substantially all the corporate
trust business of the Institutional Trustee or the Delaware Trustee, as the case
may be, shall be the successor of the Institutional Trustee or the Delaware
Trustee, as the case may be, hereunder, without the execution or filing of any
paper or any further act on the part of any of the parties hereto, provided such
Person shall be otherwise qualified and eligible under this Article and,
provided, further, that such Person shall file an amendment to the Certificate
of Trust with the Secretary of State of the State of Delaware as contemplated in
Section 4.7(i).

                                   ARTICLE V
                                  DISTRIBUTIONS

      SECTION 5.1. Distributions. Holders shall receive Distributions in
accordance with the applicable terms of the relevant Holder's Securities.
Distributions shall be made on the Capital Securities and the Common Securities
in accordance with the preferences set forth in their respective terms. If and
to the extent that the Debenture Issuer makes a payment of interest (including
any Additional Interest or Deferred Interest) or premium, if any, on and/or
principal on the Debentures held by the Institutional Trustee (the amount of any
such payment being a "Payment Amount"), the Institutional Trustee shall and is
directed, to the extent funds are available in the Property Account for that
purpose, to make a distribution (a "Distribution") of the Payment Amount to
Holders. For the avoidance of doubt, funds in the Property Account shall not be
distributed to Holders to the extent of any taxes payable by the Trust, in the
case of withholding taxes, as determined by the Institutional Trustee or any
Paying Agent and, in the case of taxes other than withholding tax taxes, as
determined by the Administrators in a written notice to the Institutional
Trustee.

                                      -28-
<PAGE>

                                   ARTICLE VI
                             ISSUANCE OF SECURITIES

      SECTION 6.1. General Provisions Regarding Securities.

            (a)   The Administrators shall on behalf of the Trust issue one
series of capital securities, evidenced by a certificate substantially in the
form of Exhibit A-1, representing undivided beneficial interests in the assets
of the Trust and having such terms as are set forth in Annex I (the "Capital
Securities"), and one series of common securities, evidenced by a certificate
substantially in the form of Exhibit A-2, representing undivided beneficial
interests in the assets of the Trust and having such terms as are set forth in
Annex I (the "Common Securities"). The Trust shall issue no securities or other
interests in the assets of the Trust other than the Capital Securities and the
Common Securities. The Capital Securities rank pari passu and payment thereon
shall be made Pro Rata with the Common Securities except that, where an Event of
Default has occurred and is continuing, the rights of Holders of the Common
Securities to payment in respect of Distributions and payments upon liquidation,
redemption and otherwise are subordinated to the rights to payment of the
Holders of the Capital Securities.

            (b)   The Certificates shall be signed on behalf of the Trust by one
or more Administrators. Such signature shall be the facsimile or manual
signature of any Administrator. In case any Administrator of the Trust who shall
have signed any of the Securities shall cease to be such Administrator before
the Certificates so signed shall be delivered by the Trust, such Certificates
nevertheless may be delivered as though the person who signed such Certificates
had not ceased to be such Administrator. Any Certificate may be signed on behalf
of the Trust by such person who, at the actual date of execution of such
Security, shall be an Administrator of the Trust, although at the date of the
execution and delivery of the Declaration any such person was not such an
Administrator. A Capital Security shall not be valid until authenticated by the
manual signature of an Authorized Officer of the Institutional Trustee. Such
signature shall be conclusive evidence that the Capital Security has been
authenticated under this Declaration. Upon written order of the Trust signed by
one Administrator, the Institutional Trustee shall authenticate the Capital
Securities for original issue. The Institutional Trustee may appoint an
authenticating agent that is a U.S. Person acceptable to the Trust to
authenticate the Capital Securities. A Common Security need not be so
authenticated and shall be valid upon execution by one or more Administrators.

            (c)   The consideration received by the Trust for the issuance of
the Securities shall constitute a contribution to the capital of the Trust and
shall not constitute a loan to the Trust.

            (d)   Upon issuance of the Securities as provided in this
Declaration, the Securities so issued shall be deemed to be validly issued,
fully paid and non-assessable, and each Holder thereof shall be entitled to the
benefits provided by this Declaration.

            (e)   Every Person, by virtue of having become a Holder in
accordance with the terms of this Declaration, shall be deemed to have expressly
assented and agreed to the terms of, and shall be bound by, this Declaration and
the Guarantee.

                                      -29-
<PAGE>

      SECTION 6.2. Paying Agent, Transfer Agent, Calculation Agent and
Registrar.

            (a)   The Trust shall maintain in New York, New York, an office or
agency where the Securities may be presented for payment (the "Paying Agent"),
and an office or agency where Securities may be presented for registration of
transfer or exchange (the "Transfer Agent"). The Trustee hereby appoints the
Institutional Trustee as Paying Agent and Transfer Agent at ITS Unit Trust
Window, 4 New York Plaza, Ground Floor, New York, New York 10004, Attn: ITS
(Houston) - PB Capital Trust II. The Trust shall also keep or cause to be kept a
register for the purpose of registering Securities and transfers and exchanges
of Securities, such register to be held by a registrar (the "Registrar"). The
Administrators may appoint the Paying Agent, the Registrar and the Transfer
Agent, and may appoint one or more additional Paying Agents, one or more
co-Registrars, or one or more co-Transfer Agents in such other locations as it
shall determine. The term "Paying Agent" includes any additional Paying Agent,
the term "Registrar" includes any additional Registrar or co-Registrar and the
term "Transfer Agent" includes any additional Transfer Agent or co-Transfer
Agent. The Administrators may change any Paying Agent, Transfer Agent or
Registrar at any time without prior notice to any Holder. The Administrators
shall notify the Institutional Trustee of the name and address of any Paying
Agent, Transfer Agent and Registrar not a party to this Declaration. The
Administrators hereby initially appoint the Institutional Trustee to act as
Registrar for the Capital Securities and the Common Securities at its Corporate
Trust Office. The Institutional Trustee or any of its Affiliates in the United
States may act as Paying Agent, Transfer Agent or Registrar.

            (b)   The Trust shall also appoint a Calculation Agent, which shall
determine the Coupon Rate in accordance with the terms of the Securities. The
Trust initially appoints the Institutional Trustee as Calculation Agent.

      SECTION 6.3. Form and Dating.

            (a)   The Capital Securities and the Institutional Trustee's
certificate of authentication thereon shall be substantially in the form of
Exhibit A-1, and the Common Securities shall be substantially in the form of
Exhibit A-2, each of which is hereby incorporated in and expressly made a part
of this Declaration. Certificates may be typed, printed, lithographed or
engraved or may be produced in any other manner as is reasonably acceptable to
the Administrators, as conclusively evidenced by their execution thereof. The
Certificates may have letters, numbers, notations or other marks of
identification or designation and such legends or endorsements required by law,
stock exchange rule, agreements to which the Trust is subject, if any, or usage
(provided, that any such notation, legend or endorsement is in a form acceptable
to the Sponsor). The Trust at the direction of the Sponsor shall furnish any
such legend not contained in Exhibit A-1 to the Institutional Trustee in
writing. Each Capital Security shall be dated the date of its authentication.
The terms and provisions of the Securities set forth in Annex I and the forms of
Securities set forth in Exhibits A-1 and A-2 are part of the terms of this
Declaration and to the extent applicable, the Institutional Trustee, the
Delaware Trustee, the Administrators and the Sponsor, by their execution and
delivery of this Declaration, expressly agree to such terms and provisions and
to be bound thereby. Capital Securities will be issued only in blocks having a
stated liquidation amount of not less than $100,000 and multiples of $1,000 in
excess thereof.

                                      -30-
<PAGE>

            (b)   The Capital Securities sold by the Trust to the initial
purchasers pursuant to the Placement Agreement and the Capital Securities
Purchase Agreement shall be issued in definitive form, registered in the name of
the Holder thereof, without coupons and with the Restricted Securities Legend.

      SECTION 6.4. Mutilated, Destroyed, Lost or Stolen Certificates. If: (a)
any mutilated Certificates should be surrendered to the Registrar, or if the
Registrar shall receive evidence to its satisfaction of the destruction, loss or
theft of any Certificate; and (b) there shall be delivered to the Registrar, the
Administrators and the Institutional Trustee such security or indemnity as may
be required by them to hold each of them harmless; then, in the absence of
notice that such Certificate shall have been acquired by a bona fide purchaser,
an Administrator on behalf of the Trust shall execute (and in the case of a
Capital Security Certificate, the Institutional Trustee shall authenticate) and
deliver, in exchange for or in lieu of any such mutilated, destroyed, lost or
stolen Certificate, a new Certificate of like denomination. In connection with
the issuance of any new Certificate under this Section 6.4, the Registrar or the
Administrators may require the payment of a sum sufficient to cover any tax or
other governmental charge that may be imposed in connection therewith. Any
duplicate Certificate issued pursuant to this Section shall constitute
conclusive evidence of an ownership interest in the relevant Securities, as if
originally issued, whether or not the lost, stolen or destroyed Certificate
shall be found at any time.

      SECTION 6.5. Temporary Securities. Until definitive Securities are ready
for delivery, the Administrators may prepare and, in the case of the Capital
Securities, the Institutional Trustee shall authenticate, temporary Securities.
Temporary Securities shall be substantially in form of definitive Securities but
may have variations that the Administrators consider appropriate for temporary
Securities. Without unreasonable delay, the Administrators shall prepare and, in
the case of the Capital Securities, the Institutional Trustee shall authenticate
definitive Securities in exchange for temporary Securities.

      SECTION 6.6. Cancellation. The Administrators at any time may deliver
Securities to the Registrar for cancellation. The Registrar shall forward to the
Institutional Trustee any Securities surrendered to it for registration of
transfer, redemption or payment. The Institutional Trustee shall promptly cancel
all Securities surrendered for registration of transfer, payment, replacement or
cancellation and shall dispose of such canceled Securities in accordance with
its standard procedures or otherwise as the Administrators direct. The
Administrators may not issue new Securities to replace Securities that have been
paid or that have been delivered to the Institutional Trustee for cancellation.

      SECTION 6.7. Rights of Holders; Waivers of Past Defaults.

            (a)   The legal title to the Trust Property is vested exclusively in
the Institutional Trustee (in its capacity as such) in accordance with Section
2.5, and the Holders shall not have any right or title therein other than the
undivided beneficial interest in the assets of the Trust conferred by their
Securities and they shall have no right to call for any partition or division of
property, profits or rights of the Trust except as described below. The
Securities shall be personal property giving only the rights specifically set
forth therein and in this Declaration. The Securities shall have no, and the
issuance of the Securities shall not be subject to,

                                      -31-
<PAGE>

preemptive or other similar rights and when issued and delivered to Holders
against payment of the purchase price therefor, the Securities will be fully
paid and nonassessable by the Trust.

            (b)   For so long as any Capital Securities remain outstanding, if,
upon an Indenture Event of Default under Section 5.01(c) of the Indenture, the
Debenture Trustee fails or the holders of not less than 25% in principal amount
of the outstanding Debentures fail to declare the principal of all of the
Debentures to be immediately due and payable, the Holders of not less than a
Majority in liquidation amount of the Capital Securities then outstanding shall
have the right to make such declaration by a notice in writing to the
Institutional Trustee, the Sponsor and the Debenture Trustee.

            (c)   At any time after a declaration of acceleration of maturity of
the Debentures has been made and before a judgment or decree for payment of the
money due has been obtained by the Debenture Trustee as provided in the
Indenture, if the Institutional Trustee, subject to the provisions hereof, fails
to annul any such declaration and waive such default, the Holders of not less
than a Majority in liquidation amount of the Capital Securities, by written
notice to the Institutional Trustee, the Sponsor and the Debenture Trustee, may
rescind and annul such declaration and its consequences if:

                  (i)   the Sponsor has paid or deposited with the Debenture
            Trustee a sum sufficient to pay

                        (A) all overdue installments of interest on all of the
                  Debentures;

                        (B) any accrued Deferred Interest on all of the
                  Debentures;

                        (C) all payments on any Debentures that have become due
                  otherwise than by such declaration of acceleration and
                  interest and Deferred Interest thereon at the rate borne by
                  the Debentures; and

                        (D) all sums paid or advanced by the Debenture Trustee
                  under the Indenture and the reasonable compensation,
                  documented expenses, disbursements and advances of the
                  Debenture Trustee and the Institutional Trustee, their agents
                  and counsel; and

                  (ii)  all Events of Default with respect to the Debentures,
            other than the non-payment of the principal of or premium, if any,
            on the Debentures that has become due solely by such acceleration,
            have been cured or waived as provided in Section 5.07 of the
            Indenture.

            (d)   The Holders of not less than a Majority in liquidation amount
of the Capital Securities may, on behalf of the Holders of all the Capital
Securities, waive any past default or Event of Default, except a default or
Event of Default in the payment of principal or interest (unless such default or
Event of Default has been cured and a sum sufficient to pay all matured
installments of interest and principal due otherwise than by acceleration has
been deposited with the Debenture Trustee) or a default or Event of Default in
respect of a covenant or provision that under the Indenture cannot be modified
or amended without the consent of the

                                      -32-
<PAGE>

holder of each outstanding Debenture. No such rescission shall affect any
subsequent default or impair any right consequent thereon.

            (e)   Upon receipt by the Institutional Trustee of written notice
declaring such an acceleration, or rescission and annulment thereof, by Holders
of any part of the Capital Securities, a record date shall be established for
determining Holders of outstanding Capital Securities entitled to join in such
notice, which record date shall be at the close of business on the day the
Institutional Trustee receives such notice. The Holders on such record date, or
their duly designated proxies, and only such Persons, shall be entitled to join
in such notice, whether or not such Holders remain Holders after such record
date; provided, that, unless such declaration of acceleration, or rescission and
annulment, as the case may be, shall have become effective by virtue of the
requisite percentage having joined in such notice prior to the day that is 90
days after such record date, such notice of declaration of acceleration, or
rescission and annulment, as the case may be, shall automatically and without
further action by any Holder be canceled and of no further effect. Nothing in
this paragraph shall prevent a Holder, or a proxy of a Holder, from giving,
after expiration of such 90-day period, a new written notice of declaration of
acceleration, or rescission and annulment thereof, as the case may be, that is
identical to a written notice that has been canceled pursuant to the proviso to
the preceding sentence, in which event a new record date shall be established
pursuant to the provisions of this Section 6.7.

            (f)   Except as otherwise provided in this Section 6.7, the Holders
of not less than a Majority in liquidation amount of the Capital Securities may,
on behalf of the Holders of all the Capital Securities, waive any past default
or Event of Default and its consequences. Upon such waiver, any such default or
Event of Default shall cease to exist, and any default or Event of Default
arising therefrom shall be deemed to have been cured, for every purpose of this
Declaration, but no such waiver shall extend to any subsequent or other default
or Event of Default or impair any right consequent thereon.

                                  ARTICLE VII
                      DISSOLUTION AND TERMINATION OF TRUST

      SECTION 7.1. Dissolution and Termination of Trust.

            (a)   The Trust shall dissolve on the first to occur of

                  (i)   unless earlier dissolved, on March 29, 2040, the
            expiration of the term of the Trust;

                  (ii)  a Bankruptcy Event with respect to the Sponsor, the
            Trust or the Debenture Issuer;

                  (iii) (other than in connection with a merger, consolidation
            or similar transaction not prohibited by the Indenture, this
            Declaration or the Guarantee, as the case may be) the filing of a
            certificate of dissolution or its equivalent with respect to the
            Sponsor or upon the revocation of the charter of the Sponsor and the
            expiration of 90 days after the date of revocation without a
            reinstatement thereof;

                                      -33-
<PAGE>

                  (iv)  the distribution of all of the Debentures to the Holders
            of the Securities, upon exercise of the right of the Holders of all
            of the outstanding Common Securities to dissolve the Trust as
            provided in Annex I hereto;

                  (v)   the entry of a decree of judicial dissolution of any
            Holder of the Common Securities, the Sponsor, the Trust or the
            Debenture Issuer;

                  (vi)  when all of the Securities shall have been called for
            redemption and the amounts necessary for redemption thereof shall
            have been paid to the Holders in accordance with the terms of the
            Securities; or

                  (vii) before the issuance of any Securities, with the consent
            of all of the Trustees and the Sponsor.

            (b)   As soon as is practicable after the occurrence of an event
referred to in Section 7.1(a), and after satisfaction of liabilities to
creditors of the Trust as required by applicable law, including Section 3808 of
the Statutory Trust Act, and subject to the terms set forth in Annex I, the
Delaware Trustee, when notified in writing of the completion of the winding up
of the Trust in accordance with the Statutory Trust Act, shall terminate the
Trust by filing, at the expense of the Sponsor, a certificate of cancellation
with the Secretary of State of the State of Delaware.

            (c)   The provisions of Section 2.9 and Article IX shall survive the
termination of the Trust.

                                  ARTICLE VIII
                              TRANSFER OF INTERESTS

      SECTION 8.1. General.

            (a)   Subject to Section 6.4 and Section 8.1(c), when Capital
Securities are presented to the Registrar with a request to register a transfer
or to exchange them for an equal number of Capital Securities represented by
different Certificates, the Registrar shall register the transfer or make the
exchange if the requirements provided for herein for such transactions are met.
To permit registrations of transfers and exchanges, the Trust shall issue and
the Institutional Trustee shall authenticate Capital Securities at the
Registrar's request.

            (b)   Upon issuance of the Common Securities, the Sponsor shall
acquire and retain beneficial and record ownership of the Common Securities and,
for so long as the Securities remain outstanding, the Sponsor shall maintain
100% ownership of the Common Securities; provided, however, that any permitted
successor of the Sponsor under the Indenture that is a U.S. Person may succeed
to the Sponsor's ownership of the Common Securities.

            (c)   Capital Securities may only be transferred, in whole or in
part, in accordance with the terms and conditions set forth in this Declaration
and in the terms of the Capital Securities. To the fullest extent permitted by
applicable law, any transfer or purported transfer of any Security not made in
accordance with this Declaration shall be null and void and will be deemed to be
of no legal effect whatsoever and any such transferee shall be deemed not

                                      -34-
<PAGE>

to be the holder of such Capital Securities for any purpose, including but not
limited to the receipt of Distributions on such Capital Securities, and such
transferee shall be deemed to have no interest whatsoever in such Capital
Securities.

            (d)   The Registrar shall provide for the registration of Securities
and of transfers of Securities, which will be effected without charge but only
upon payment (with such indemnity as the Registrar may require) in respect of
any tax or other governmental charges that may be imposed in relation to it.
Upon surrender for registration of transfer of any Securities, the Registrar
shall cause one or more new Securities to be issued in the name of the
designated transferee or transferees. Any Security issued upon any registration
of transfer or exchange pursuant to the terms of this Declaration shall evidence
the same Security and shall be entitled to the same benefits under this
Declaration as the Security surrendered upon such registration of transfer or
exchange. Every Security surrendered for registration of transfer shall be
accompanied by a written instrument of transfer in form satisfactory to the
Registrar duly executed by the Holder or such Holder's attorney duly authorized
in writing. Each Security surrendered for registration of transfer shall be
canceled by the Institutional Trustee pursuant to Section 6.6. A transferee of a
Security shall be entitled to the rights and subject to the obligations of a
Holder hereunder upon the receipt by such transferee of a Security. By
acceptance of a Security, each transferee shall be deemed to have agreed to be
bound by this Declaration.

            (e)   Neither the Trust nor the Registrar shall be required (i) to
issue, register the transfer of, or exchange any Securities during a period
beginning at the opening of business 15 days before the day of any selection of
Securities for redemption and ending at the close of business on the earliest
date on which the relevant notice of redemption is deemed to have been given to
all Holders of the Securities to be redeemed, or (ii) to register the transfer
or exchange of any Security so selected for redemption in whole or in part,
except the unredeemed portion of any Security being redeemed in part.

      SECTION 8.2. Transfer Procedures and Restrictions.

            (a)   The Capital Securities shall bear the Restricted Securities
Legend (as defined below), which shall not be removed unless there is delivered
to the Trust such satisfactory evidence, which may include an opinion of counsel
reasonably acceptable to the Administrators and the Institutional Trustee, as
may be reasonably required by the Trust or the Institutional Trustee, that
neither the legend nor the restrictions on transfer set forth therein are
required to ensure that transfers thereof comply with the provisions of the
Securities Act or that such Securities are not "restricted" within the meaning
of Rule 144 under the Securities Act. Upon provision of such satisfactory
evidence, the Institutional Trustee, at the written direction of the
Administrators, shall authenticate and deliver Capital Securities that do not
bear the Restricted Securities Legend (other than the legend contemplated by
Section 8.2(d)).

            (b)   When Capital Securities are presented to the Registrar (x) to
register the transfer of such Capital Securities, or (y) to exchange such
Capital Securities for an equal number of Capital Securities represented by
different Certificates, the Registrar shall register the transfer or make the
exchange as requested if its reasonable requirements for such transaction are
met; provided, however, that the Capital Securities surrendered for registration
of transfer or

                                      -35-
<PAGE>

exchange shall be duly endorsed or accompanied by a written instrument of
transfer in form reasonably satisfactory to the Administrators, the
Institutional Trustee and the Registrar, duly executed by the Holder thereof or
his attorney duly authorized in writing.

            (c)   Except as permitted by Section 8.2(a), each Capital Security
shall bear a legend (the "Restricted Securities Legend") in substantially the
following form:

      THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE "SECURITIES ACT"), OR ANY STATE SECURITIES LAWS OR ANY OTHER
APPLICABLE SECURITIES LAWS. NEITHER THIS SECURITY NOR ANY INTEREST OR
PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED,
ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR
UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT. THE HOLDER OF THIS SECURITY BY ITS
ACCEPTANCE HEREOF AGREES TO OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY ONLY
(A) TO THE DEBENTURE ISSUER OR THE TRUST, (B) PURSUANT TO RULE 144A UNDER THE
SECURITIES ACT ("RULE 144A") TO A PERSON THE HOLDER REASONABLY BELIEVES IS A
"QUALIFIED INSTITUTIONAL BUYER" AS DEFINED IN RULE 144A THAT PURCHASES FOR ITS
OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE
IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (C) TO A "NON
U.S. PERSON" IN AN "OFFSHORE TRANSACTION" PURSUANT TO REGULATION S UNDER THE
SECURITIES ACT, (D) PURSUANT TO AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS
OF THE SECURITIES ACT TO AN "ACCREDITED INVESTOR" WITHIN THE MEANING OF
SUBPARAGRAPH (a) (1), (2), (3) OR (7) OF RULE 501 UNDER THE SECURITIES ACT THAT
IS ACQUIRING THE SECURITY FOR ITS OWN ACCOUNT, OR FOR THE ACCOUNT OF SUCH AN
"ACCREDITED INVESTOR," FOR INVESTMENT PURPOSES AND NOT WITH A VIEW TO, OR FOR
OFFER OR SALE IN CONNECTION WITH, ANY DISTRIBUTION IN VIOLATION OF THE
SECURITIES ACT, OR (E) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE DEBENTURE
ISSUER'S AND THE TRUST'S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER
PURSUANT TO CLAUSES (D) OR (E) TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL,
CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM IN
ACCORDANCE WITH THE AMENDED AND RESTATED DECLARATION OF TRUST, A COPY OF WHICH
MAY BE OBTAINED FROM THE DEBENTURE ISSUER OR THE TRUST. THE HOLDER OF THIS
SECURITY BY ITS ACCEPTANCE HEREOF AGREES THAT IT WILL COMPLY WITH THE FOREGOING
RESTRICTIONS.

      THE HOLDER OF THIS SECURITY BY ITS ACCEPTANCE HEREOF AGREES, REPRESENTS
AND WARRANTS THAT IT WILL NOT ENGAGE IN HEDGING TRANSACTIONS INVOLVING THIS
SECURITY UNLESS SUCH TRANSACTIONS ARE IN COMPLIANCE WITH THE SECURITIES ACT.

                                      -36-
<PAGE>

      THE HOLDER OF THIS SECURITY BY ITS ACCEPTANCE HEREOF ALSO AGREES,
REPRESENTS AND WARRANTS THAT IT IS NOT AN EMPLOYEE BENEFIT, INDIVIDUAL
RETIREMENT ACCOUNT OR OTHER PLAN OR ARRANGEMENT SUBJECT TO TITLE I OF THE
EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"), OR
SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE "CODE"),
(EACH A "PLAN"), OR AN ENTITY WHOSE UNDERLYING ASSETS INCLUDE "PLAN ASSETS" BY
REASON OF ANY PLAN'S INVESTMENT IN THE ENTITY AND NO PERSON INVESTING "PLAN
ASSETS" OF ANY PLAN MAY ACQUIRE OR HOLD THIS SECURITY OR ANY INTEREST THEREIN,
UNLESS SUCH PURCHASER OR HOLDER IS ELIGIBLE FOR THE EXEMPTION RELIEF AVAILABLE
UNDER U.S. DEPARTMENT OF LABOR PROHIBITED TRANSACTION CLASS EXEMPTION 96-23,
95-60, 91-38, 90-1 OR 84-14 OR ANOTHER APPLICABLE EXEMPTION OR ITS PURCHASE AND
HOLDING OF THIS SECURITY IS NOT PROHIBITED BY SECTION 406 OF ERISA OR SECTION
4975 OF THE CODE WITH RESPECT TO SUCH PURCHASE OR HOLDING. ANY PURCHASER OR
HOLDER OF THIS SECURITY OR ANY INTEREST THEREIN WILL BE DEEMED TO HAVE
REPRESENTED BY ITS PURCHASE AND HOLDING THEREOF THAT EITHER (i) IT IS NOT AN
EMPLOYEE BENEFIT PLAN WITHIN THE MEANING OF SECTION 3(3) OF ERISA, OR A PLAN TO
WHICH SECTION 4975 OF THE CODE IS APPLICABLE, A TRUSTEE OR OTHER PERSON ACTING
ON BEHALF OF AN EMPLOYEE BENEFIT PLAN OR PLAN, OR ANY OTHER PERSON OR ENTITY
USING THE ASSETS OF ANY EMPLOYEE BENEFIT PLAN OR PLAN TO FINANCE SUCH PURCHASE,
OR (ii) SUCH PURCHASE WILL NOT RESULT IN A PROHIBITED TRANSACTION UNDER SECTION
406 OF ERISA OR SECTION 4975 OF THE CODE FOR WHICH THERE IS NO APPLICABLE
STATUTORY OR ADMINISTRATIVE EXEMPTION.

      IN CONNECTION WITH ANY TRANSFER, THE HOLDER OF THE CERTIFICATE WILL
DELIVER TO THE REGISTRAR AND TRANSFER AGENT SUCH CERTIFICATES AND OTHER
INFORMATION AS MAY BE REQUIRED BY THE AMENDED AND RESTATED DECLARATION OF TRUST
TO CONFIRM THAT THE TRANSFER COMPLIES WITH THE FOREGOING RESTRICTIONS.

      THIS SECURITY WILL BE ISSUED AND MAY BE TRANSFERRED ONLY IN BLOCKS HAVING
A LIQUIDATION AMOUNT OF NOT LESS THAN $100,000 AND MULTIPLES OF $1,000 IN EXCESS
THEREOF. ANY ATTEMPTED TRANSFER OF THIS SECURITY IN A BLOCK HAVING A LIQUIDATION
AMOUNT OF LESS THAN $100,000 SHALL BE DEEMED TO BE VOID AND OF NO LEGAL EFFECT
WHATSOEVER. ANY SUCH PURPORTED TRANSFEREE SHALL BE DEEMED NOT TO BE THE HOLDER
OF THIS SECURITY FOR ANY PURPOSE, INCLUDING, BUT NOT LIMITED TO, THE RECEIPT OF
DISTRIBUTIONS ON THIS SECURITY, AND SUCH PURPORTED TRANSFEREE SHALL BE DEEMED TO
HAVE NO INTEREST WHATSOEVER IN THIS SECURITY.

            (d)   Capital Securities may only be transferred in minimum blocks
of $100,000 aggregate liquidation amount (100 Capital Securities) and multiples
of $1,000 in excess thereof. Any attempted transfer of Capital Securities in a
block having an aggregate liquidation amount of less than $100,000 shall be
deemed to be void and of no legal effect whatsoever. Any such

                                      -37-
<PAGE>

purported transferee shall be deemed not to be a Holder of such Capital
Securities for any purpose, including, but not limited to, the receipt of
Distributions on such Capital Securities, and such purported transferee shall be
deemed to have no interest whatsoever in such Capital Securities.

            (e)   Each party hereto understands and hereby agrees that the
Initial Purchaser is intended solely to be an interim holder of the Capital
Securities and is purchasing such securities to facilitate consummation of the
transactions contemplated herein and in the documents ancillary hereto.
Notwithstanding any provision in this Declaration to the contrary, the Initial
Purchaser shall have the right upon notice (a "Transfer Notice") to the
Institutional Trustee and the Sponsor to transfer title in and to the Capital
Securities; provided the Initial Purchaser shall take reasonable steps to ensure
that such transfer is exempt from registration under the Securities Act of 1933,
as amended, and rules promulgated thereunder. Any Transfer Notice delivered to
the Institutional Trustee and Sponsor pursuant to the preceding sentence shall
indicate the aggregate liquidation amount of Capital Securities being
transferred, the name and address of the transferee thereof (the "Transferee")
and the date of such transfer. Notwithstanding any provision in this Declaration
to the contrary, the transfer by the Initial Purchaser of title in and to the
Capital Securities pursuant to a Transfer Notice shall not be subject to any
requirement relating to Opinions of Counsel, Certificates of Transfer or any
other Opinion or Certificate applicable to transfers hereunder and relating to
Capital Securities.

      SECTION 8.3. Deemed Security Holders. The Trust, the Administrators, the
Trustees, the Paying Agent, the Transfer Agent or the Registrar may treat the
Person in whose name any Certificate shall be registered on the books and
records of the Trust as the sole holder of such Certificate and of the
Securities represented by such Certificate for purposes of receiving
Distributions and for all other purposes whatsoever and, accordingly, shall not
be bound to recognize any equitable or other claim to or interest in such
Certificate or in the Securities represented by such Certificate on the part of
any Person, whether or not the Trust, the Administrators, the Trustees, the
Paying Agent, the Transfer Agent or the Registrar shall have actual or other
notice thereof.

                                   ARTICLE IX
                       LIMITATION OF LIABILITY OF HOLDERS
                        OF SECURITIES, TRUSTEES OR OTHERS

      SECTION 9.1. Liability.

            (a)   Except as expressly set forth in this Declaration, the
Guarantee and the terms of the Securities, the Sponsor shall not be:

                  (i)   personally liable for the return of any portion of the
            capital contributions (or any return thereon) of the Holders of the
            Securities which shall be made solely from assets of the Trust; and

                  (ii)  required to pay to the Trust or to any Holder of the
            Securities any deficit upon dissolution of the Trust or otherwise.

                                      -38-
<PAGE>

            (b)   The Holder of the Common Securities shall be liable for all of
the debts and obligations of the Trust (other than with respect to the
Securities) to the extent not satisfied out of the Trust's assets.

            (c)   Except to the extent provided in Section 9.1(b), and pursuant
to Section 3803(a) of the Statutory Trust Act, the Holders of the Securities
shall be entitled to the same limitation of personal liability extended to
stockholders of private corporations for profit organized under the General
Corporation Law of the State of Delaware, except as otherwise specifically set
forth herein.

      SECTION 9.2. Exculpation.

            (a)   No Indemnified Person shall be liable, responsible or
accountable in damages or otherwise to the Trust or any Covered Person for any
loss, damage or claim incurred by reason of any act or omission performed or
omitted by such Indemnified Person in good faith on behalf of the Trust and in a
manner such Indemnified Person reasonably believed to be within the scope of the
authority conferred on such Indemnified Person by this Declaration or by law,
except that an Indemnified Person (other than an Administrator) shall be liable
for any such loss, damage or claim incurred by reason of such Indemnified
Person's negligence or willful misconduct or bad faith with respect to such acts
or omissions and except that an Administrator shall be liable for any such loss,
damage or claim incurred by reason of such Administrator's gross negligence or
willful misconduct or bad faith with respect to such acts or omissions.

            (b)   An Indemnified Person shall be fully protected in relying in
good faith upon the records of the Trust and upon such information, opinions,
reports or statements presented to the Trust by any Person as to matters the
Indemnified Person reasonably believes are within such other Person's
professional or expert competence and, if selected by such Indemnified Person,
has been selected by such Indemnified Person with reasonable care by or on
behalf of the Trust, including information, opinions, reports or statements as
to the value and amount of the assets, liabilities, profits, losses or any other
facts pertinent to the existence and amount of assets from which Distributions
to Holders of Securities might properly be paid.

      SECTION 9.3. Fiduciary Duty.

            (a)   To the extent that, at law or in equity, an Indemnified Person
has duties (including fiduciary duties) and liabilities relating thereto to the
Trust or to any other Covered Person, an Indemnified Person acting under this
Declaration shall not be liable to the Trust or to any other Covered Person for
its good faith reliance on the provisions of this Declaration. The provisions of
this Declaration, to the extent that they restrict the duties and liabilities of
an Indemnified Person otherwise existing at law or in equity (other than the
duties imposed on the Institutional Trustee under the Trust Indenture Act), are
agreed by the parties hereto to replace such other duties and liabilities of the
Indemnified Person.

            (b)   Whenever in this Declaration an Indemnified Person is
permitted or required to make a decision:

                  (i)   in its "discretion" or under a grant of similar
            authority, the Indemnified Person shall be entitled to consider such
            interests and factors as it

                                      -39-
<PAGE>

            desires, including its own interests, and shall have no duty or
            obligation to give any consideration to any interest of or factors
            affecting the Trust or any other Person; or

                  (ii)  in its "good faith" or under another express standard,
            the Indemnified Person shall act under such express standard and
            shall not be subject to any other or different standard imposed by
            this Declaration or by applicable law.

      SECTION 9.4. Indemnification.

            (a)   (i)   The Sponsor shall indemnify, to the fullest extent
            permitted by law, any Indemnified Person who was or is a party or is
            threatened to be made a party to any threatened, pending or
            completed action, suit or proceeding, whether civil, criminal,
            administrative or investigative (other than an action by or in the
            right of the Trust) by reason of the fact that such Person is or was
            an Indemnified Person against expenses (including attorneys' fees
            and expenses), judgments, fines and amounts paid in settlement
            actually and reasonably incurred by such Person in connection with
            such action, suit or proceeding if such Person acted in good faith
            and in a manner such Person reasonably believed to be in or not
            opposed to the best interests of the Trust, and, with respect to any
            criminal action or proceeding, had no reasonable cause to believe
            such conduct was unlawful. The termination of any action, suit or
            proceeding by judgment, order, settlement, conviction, or upon a
            plea of nolo contendere or its equivalent, shall not, of itself,
            create a presumption that the Indemnified Person did not act in good
            faith and in a manner which such Person reasonably believed to be in
            or not opposed to the best interests of the Trust, and, with respect
            to any criminal action or proceeding, had reasonable cause to
            believe that such conduct was unlawful.

                  (ii)  The Sponsor shall indemnify, to the fullest extent
            permitted by law, any Indemnified Person who was or is a party or is
            threatened to be made a party to any threatened, pending or
            completed action or suit by or in the right of the Trust to procure
            a judgment in its favor by reason of the fact that such Person is or
            was an Indemnified Person against expenses (including attorneys'
            fees and expenses) actually and reasonably incurred by such Person
            in connection with the defense or settlement of such action or suit
            if such Person acted in good faith and in a manner such Person
            reasonably believed to be in or not opposed to the best interests of
            the Trust and except that no such indemnification shall be made in
            respect of any claim, issue or matter as to which such Indemnified
            Person shall have been adjudged to be liable to the Trust, unless
            and only to the extent that the Court of Chancery of Delaware or the
            court in which such action or suit was brought shall determine upon
            application that, despite the adjudication of liability but in view
            of all the circumstances of the case, such Person is fairly and
            reasonably entitled to indemnity for such expenses which such Court
            of Chancery or such other court shall deem proper.

                                      -40-
<PAGE>
                  (iii) To the extent that an Indemnified Person shall be
            successful on the merits or otherwise (including dismissal of an
            action without prejudice or the settlement of an action without
            admission of liability) in defense of any action, suit or proceeding
            referred to in paragraphs (i) and (ii) of this Section 9.4(a), or in
            defense of any claim, issue or matter therein, such Person shall be
            indemnified, to the fullest extent permitted by law, against
            expenses (including attorneys' fees and expenses) actually and
            reasonably incurred by such Person in connection therewith.

                  (iv)  Any indemnification of an Administrator under paragraphs
            (i) and (ii) of this Section 9.4(a) (unless ordered by a court)
            shall be made by the Sponsor only as authorized in the specific case
            upon a determination that indemnification of the Indemnified Person
            is proper in the circumstances because such Person has met the
            applicable standard of conduct set forth in paragraphs (i) and (ii).
            Such determination shall be made (A) by the Administrators by a
            majority vote of a Quorum consisting of such Administrators who were
            not parties to such action, suit or proceeding, (B) if such a Quorum
            is not obtainable, or, even if obtainable, if a Quorum of
            disinterested Administrators so directs, by independent legal
            counsel in a written opinion, or (C) by the Common Security Holder
            of the Trust.

                  (v)   To the fullest extent permitted by law, expenses
            (including attorneys' fees and expenses) incurred by an Indemnified
            Person in defending a civil, criminal, administrative or
            investigative action, suit or proceeding referred to in paragraphs
            (i) and (ii) of this Section 9.4(a) shall be paid by the Sponsor in
            advance of the final disposition of such action, suit or proceeding
            upon receipt of an undertaking by or on behalf of such Indemnified
            Person to repay such amount if it shall ultimately be determined
            that such Person is not entitled to be indemnified by the Sponsor as
            authorized in this Section 9.4(a). Notwithstanding the foregoing, no
            advance shall be made by the Sponsor if a determination is
            reasonably and promptly made (1) in the case of a Company
            Indemnified Person (A) by the Administrators by a majority vote of a
            Quorum of disinterested Administrators, (B) if such a Quorum is not
            obtainable, or, even if obtainable, if a Quorum of disinterested
            Administrators so directs, by independent legal counsel in a written
            opinion or (C) by the Common Security Holder of the Trust, that,
            based upon the facts known to the Administrators, counsel or the
            Common Security Holder at the time such determination is made, such
            Indemnified Person acted in bad faith or in a manner that such
            Person either believed to be opposed to or did not believe to be in
            the best interests of the Trust, or, with respect to any criminal
            proceeding, that such Indemnified Person believed or had reasonable
            cause to believe such conduct was unlawful, or (2) in the case of a
            Fiduciary Indemnified Person, by independent legal counsel in a
            written opinion that, based upon the facts known to the counsel at
            the time such determination is made, such Indemnified Person acted
            in bad faith or in a manner that such Indemnified Person either
            believed to be opposed to or did not believe to be in the best
            interests of the Trust, or, with respect to any criminal proceeding,
            that such Indemnified Person believed or had reasonable cause to
            believe such conduct was unlawful. In no event shall any advance be
            made (i) to a Company Indemnified

                                      -41-
<PAGE>

            Person in instances where the Administrators, independent legal
            counsel or the Common Security Holder reasonably determine that such
            Person deliberately breached such Person's duty to the Trust or its
            Common or Capital Security Holders or (ii) to a Fiduciary
            Indemnified Person in instances where independent legal counsel
            promptly and reasonably determines in a written opinion that such
            Person deliberately breached such Person's duty to the Trust or its
            Common or Capital Security Holders.

            (b)   The Sponsor shall indemnify, to the fullest extent permitted
by applicable law, each Indemnified Person from and against any and all loss,
damage, liability, tax (other than taxes based on the income of such Indemnified
Person), penalty, expense or claim of any kind or nature whatsoever incurred by
such Indemnified Person arising out of or in connection with or by reason of the
creation, administration or termination of the Trust, or any act or omission of
such Indemnified Person in good faith on behalf of the Trust and in a manner
such Indemnified Person reasonably believed to be within the scope of authority
conferred on such Indemnified Person by this Declaration, except that no
Indemnified Person shall be entitled to be indemnified in respect of any loss,
damage, liability, tax, penalty, expense or claim incurred by such Indemnified
Person by reason of negligence, willful misconduct or bad faith with respect to
such acts or omissions.

            (c)   The indemnification and advancement of expenses provided by,
or granted pursuant to, the other paragraphs of this Section 9.4 shall not be
deemed exclusive of any other rights to which those seeking indemnification and
advancement of expenses may be entitled under any agreement, vote of
stockholders or disinterested directors of the Sponsor or Capital Security
Holders of the Trust or otherwise, both as to action in such Person's official
capacity and as to action in another capacity while holding such office. All
rights to indemnification under this Section 9.4 shall be deemed to be provided
by a contract between the Sponsor and each Indemnified Person who serves in such
capacity at any time while this Section 9.4 is in effect. Any repeal or
modification of this Section 9.4 shall not affect any rights or obligations then
existing.

            (d)   The Sponsor or the Trust may purchase and maintain insurance
on behalf of any Person who is or was an Indemnified Person against any
liability asserted against such Person and incurred by such Person in any such
capacity, or arising out of such Person's status as such, whether or not the
Sponsor would have the power to indemnify such Person against such liability
under the provisions of this Section 9.4.

            (e)   For purposes of this Section 9.4, references to "the Trust"
shall include, in addition to the resulting or surviving entity, any constituent
entity (including any constituent of a constituent) absorbed in a consolidation
or merger, so that any Person who is or was a director, trustee, officer or
employee of such constituent entity, or is or was serving at the request of such
constituent entity as a director, trustee, officer, employee or agent of another
entity, shall stand in the same position under the provisions of this Section
9.4 with respect to the resulting or surviving entity as such Person would have
with respect to such constituent entity if its separate existence had continued.

                                      -42-
<PAGE>

            (f)   The indemnification and advancement of expenses provided by,
or granted pursuant to, this Section 9.4 shall, unless otherwise provided when
authorized or ratified, continue as to a Person who has ceased to be an
Indemnified Person and shall inure to the benefit of the heirs, executors and
administrators of such a Person.

            (g)   The provisions of this Section 9.4 shall survive the
termination of this Declaration or the earlier resignation or removal of the
Institutional Trustee. The obligations of the Sponsor under this Section 9.4 to
compensate and indemnify the Trustees and to pay or reimburse the Trustees for
expenses, disbursements and advances shall constitute additional indebtedness
hereunder. Such additional indebtedness shall be secured by a lien prior to that
of the Securities upon all property and funds held or collected by the Trustees
as such, except funds held in trust for the benefit of the holders of particular
Capital Securities, provided, that the Sponsor is the holder of the Common
Securities.

      SECTION 9.5. Outside Businesses. Any Covered Person, the Sponsor, the
Delaware Trustee and the Institutional Trustee (subject to Section 4.3(c)) may
engage in or possess an interest in other business ventures of any nature or
description, independently or with others, similar or dissimilar to the business
of the Trust, and the Trust and the Holders of Securities shall have no rights
by virtue of this Declaration in and to such independent ventures or the income
or profits derived therefrom, and the pursuit of any such venture, even if
competitive with the business of the Trust, shall not be deemed wrongful or
improper. None of any Covered Person, the Sponsor, the Delaware Trustee or the
Institutional Trustee shall be obligated to present any particular investment or
other opportunity to the Trust even if such opportunity is of a character that,
if presented to the Trust, could be taken by the Trust, and any Covered Person,
the Sponsor, the Delaware Trustee and the Institutional Trustee shall have the
right to take for its own account (individually or as a partner or fiduciary) or
to recommend to others any such particular investment or other opportunity. Any
Covered Person, the Delaware Trustee and the Institutional Trustee may engage or
be interested in any financial or other transaction with the Sponsor or any
Affiliate of the Sponsor, or may act as depositary for, trustee or agent for, or
act on any committee or body of holders of, securities or other obligations of
the Sponsor or its Affiliates.

      SECTION 9.6. Compensation; Fee.

            (a)   Subject to the provisions set forth in the Fee Agreement
between the Institutional Trustee, Cohen Bros. & Company and the Company of even
date herewith, the Sponsor agrees:

                  (i)   to pay to the Trustees from time to time such
            compensation for all services rendered by them hereunder as the
            parties shall agree in writing from time to time (which compensation
            shall not be limited by any provision of law in regard to the
            compensation of a trustee of an express trust); and

                  (ii)  except as otherwise expressly provided herein, to
            reimburse the Trustees upon request for all reasonable, documented
            expenses, disbursements and advances incurred or made by the
            Trustees in accordance with any provision of this Declaration
            (including the reasonable compensation and the expenses and

                                      -43-
<PAGE>

            disbursements of their respective agents and counsel), except any
            such expense, disbursement or advance attributable to their
            negligence or willful misconduct.

            (b)   The provisions of this Section 9.6 shall survive the
dissolution of the Trust and the termination of this Declaration and the removal
or resignation of any Trustee.

                                   ARTICLE X
                                   ACCOUNTING

      SECTION 10.1. Fiscal Year. The fiscal year (the "Fiscal Year") of the
Trust shall be the calendar year, or such other year as is required by the Code.

      SECTION 10.2. Certain Accounting Matters.

            (a)   At all times during the existence of the Trust, the
Administrators shall keep, or cause to be kept at the principal office of the
Trust in the United States, as defined for purposes of Treasury Regulations
Section 301.7701-7, full books of account, records and supporting documents,
which shall reflect in reasonable detail each transaction of the Trust. The
books of account shall be maintained on the accrual method of accounting, in
accordance with generally accepted accounting principles, consistently applied.

            (b)   The Administrators shall either (i) cause each Form 10-K and
Form 10-Q prepared by the Sponsor and filed with the Commission in accordance
with the Exchange Act to be delivered to each Holder of Securities, within 90
days after the filing of each Form 10-K and within 30 days after the filing of
each Form 10-Q or (ii) cause to be prepared at the principal office of the Trust
in the United States, as defined for purposes of Treasury Regulations Section
301.7701-7, and delivered to each of the Holders of Securities, within 90 days
after the end of each Fiscal Year of the Trust, annual financial statements of
the Trust, including a balance sheet of the Trust as of the end of such Fiscal
Year, and the related statements of income or loss.

            (c)   The Administrators shall cause to be duly prepared and
delivered to each of the Holders of Securities Form 1099 or such other annual
United States federal income tax information statement required by the Code,
containing such information with regard to the Securities held by each Holder as
is required by the Code and the Treasury Regulations. Notwithstanding any right
under the Code to deliver any such statement at a later date, the Administrators
shall endeavor to deliver all such statements within 30 days after the end of
each Fiscal Year of the Trust.

            (d)   The Administrators shall cause to be duly prepared in the
United States, as defined for purposes of Treasury Regulations Section
301.7701-7, and filed an annual United States federal income tax return on a
Form 1041 or such other form required by United States federal income tax law,
and any other annual income tax returns required to be filed by the
Administrators on behalf of the Trust with any state or local taxing authority.

      SECTION 10.3. Banking. The Trust shall maintain one or more bank accounts
in the United States, as defined for purposes of Treasury Regulations Section
301.7701-7, in the name and for the sole benefit of the Trust; provided,
however, that all payments of funds in respect of the Debentures held by the
Institutional Trustee shall be made directly to the Property Account and

                                      -44-
<PAGE>

no other funds of the Trust shall be deposited in the Property Account. The sole
signatories for such accounts (including the Property Account) shall be
designated by the Institutional Trustee.

      SECTION 10.4. Withholding. The Institutional Trustee or any Paying Agent
and the Administrators shall comply with all withholding requirements under
United States federal, state and local law. As a condition to the payment of any
principal of or interest on any Debt Security without the imposition of
withholding tax, the Institutional Trustee or any Paying Agent shall require the
previous delivery of properly completed and signed applicable U.S. federal
income tax certifications (generally, an Internal Revenue Service Form W-9 (or
applicable successor form) in the case of a person that is a "United States
person" within the meaning of Section 7701(a)(30) of the Code or an Internal
Revenue Service Form W-8 (or applicable successor form) in the case of a person
that is not a "United States person" within the meaning of Section 7701(a)(30)
of the Code) and any other certification acceptable to it to enable the
Institutional Trustee or any Paying Agent and the Trustee to determine their
respective duties and liabilities with respect to any taxes or other charges
that they may be required to pay, deduct or withhold in respect of such Debt
Security or the holder of such Debt Security under any present or future law or
regulation of the United States or any political subdivision thereof or taxing
authority therein or to comply with any reporting or other requirements under
any such law or regulation. The Administrators shall file required forms with
applicable jurisdictions and, unless an exemption from withholding is properly
established by a Holder, shall remit amounts withheld with respect to the Holder
to applicable jurisdictions. To the extent that the Institutional Trustee or any
Paying Agent is required to withhold and pay over any amounts to any authority
with respect to distributions or allocations to any Holder, the amount withheld
shall be deemed to be a Distribution to the Holder in the amount of the
withholding. In the event of any claimed overwithholding, Holders shall be
limited to an action against the applicable jurisdiction. If the amount required
to be withheld was not withheld from actual Distributions made, the
Institutional Trustee or any Paying Agent may reduce subsequent Distributions by
the amount of such withholding.

                                   ARTICLE XI
                             AMENDMENTS AND MEETINGS

      SECTION 11.1. Amendments.

            (a)   Except as otherwise provided in this Declaration or by any
applicable terms of the Securities, this Declaration may only be amended by a
written instrument approved and executed by:

                  (i)   the Institutional Trustee,

                  (ii)  if the amendment affects the rights, powers, duties,
            obligations or immunities of the Delaware Trustee, the Delaware
            Trustee,

                  (iii) if the amendment affects the rights, powers, duties,
            obligations or immunities of the Administrators, the Administrators,
            and

                  (iv)  the Holders of a Majority in liquidation amount of the
            Common Securities.

                                      -45-
<PAGE>

            (b)   Notwithstanding any other provision of this Article XI, no
amendment shall be made, and any such purported amendment shall be void and
ineffective:

                  (i)   unless the Institutional Trustee shall have first
            received

                        (A) an Officers' Certificate from each of the Trust and
                  the Sponsor that such amendment is permitted by, and conforms
                  to, the terms of this Declaration (including the terms of the
                  Securities); and

                        (B) an opinion of counsel (who may be counsel to the
                  Sponsor or the Trust) that such amendment is permitted by, and
                  conforms to, the terms of this Declaration (including the
                  terms of the Securities) and that all conditions precedent to
                  the execution and delivery of such amendment have been
                  satisfied; or

                  (ii)  if the result of such amendment would be to

                        (A) cause the Trust to cease to be classified for
                  purposes of United States federal income taxation as a grantor
                  trust;

                        (B) reduce or otherwise adversely affect the powers of
                  the Institutional Trustee in contravention of the Trust
                  Indenture Act;

                        (C) cause the Trust to be deemed to be an Investment
                  Company required to be registered under the Investment Company
                  Act; or

                        (D) cause the Debenture Issuer to be unable to treat an
                  amount equal to the Liquidation Amount of the Capital
                  Securities as "Tier 1 Capital" for purposes of the capital
                  adequacy guidelines of (x) the Federal Reserve (or, if the
                  Debenture Issuer is not a bank holding company, such
                  guidelines or policies applied to the Debenture Issuer as if
                  the Debenture Issuer were subject to such guidelines of
                  policies) or of (y) any other regulatory authority having
                  jurisdiction over the Debenture Issuer.

            (c)   Except as provided in Section 11.1(d), (e) or (g), no
amendment shall be made, and any such purported amendment shall be void and
ineffective, unless the Holders of a Majority in liquidation amount of the
Capital Securities shall have consented to such amendment.

            (d)   In addition to and notwithstanding any other provision in this
Declaration, without the consent of each affected Holder, this Declaration may
not be amended to (i) change the amount or timing of any Distribution on the
Securities or any redemption or liquidation provisions applicable to the
Securities or otherwise adversely affect the amount of any Distribution required
to be made in respect of the Securities as of a specified date or (ii) restrict
the right of a Holder to institute suit for the enforcement of any such payment
on or after such date.

                                      -46-
<PAGE>

            (e)   Sections 9.1(b) and 9.1(c) and this Section 11.1 shall not be
amended without the consent of all of the Holders of the Securities.

            (f)   The rights of the Holders of the Capital Securities and Common
Securities, as applicable, under Article IV to increase or decrease the number
of, and appoint and remove, Trustees shall not be amended without the consent of
the Holders of a Majority in liquidation amount of the Capital Securities or
Common Securities, as applicable.

            (g)   Subject to Section 11.1(a), this Declaration may be amended by
the Institutional Trustee and the Holder of a Majority in liquidation amount of
the Common Securities without the consent of the Holders of the Capital
Securities to:

                  (i)   cure any ambiguity;

                  (ii)  correct or supplement any provision in this Declaration
            that may be defective or inconsistent with any other provision of
            this Declaration;

                  (iii) add to the covenants, restrictions or obligations of the
            Sponsor; or

                  (iv)  modify, eliminate or add to any provision of this
            Declaration to such extent as may be necessary or desirable,
            including, without limitation, to ensure that the Trust will be
            classified for United States federal income tax purposes at all
            times as a grantor trust and will not be required to register as an
            Investment Company under the Investment Company Act (including
            without limitation to conform to any change in Rule 3a-5, Rule 3a-7
            or any other applicable rule under the Investment Company Act or
            written change in interpretation or application thereof by any
            legislative body, court, government agency or regulatory authority)
            which amendment does not have a material adverse effect on the
            right, preferences or privileges of the Holders of Securities;

provided, however, that no such modification, elimination or addition referred
to in clauses (i), (ii), (iii) or (iv) shall adversely affect the powers,
preferences or rights of Holders of Capital Securities.

      SECTION 11.2. Meetings of the Holders of the Securities; Action by Written
Consent.

            (a)   Meetings of the Holders of any class of Securities may be
called at any time by the Administrators (or as provided in the terms of the
Securities) to consider and act on any matter on which Holders of such class of
Securities are entitled to act under the terms of this Declaration, the terms of
the Securities or the rules of any stock exchange on which the Capital
Securities are listed or admitted for trading, if any. The Administrators shall
call a meeting of the Holders of such class if directed to do so by the Holders
of not less than 10% in liquidation amount of such class of Securities. Such
direction shall be given by delivering to the Administrators one or more notices
in a writing stating that the signing Holders of the Securities wish to call a
meeting and indicating the general or specific purpose for which the meeting is
to be called. Any Holders of the Securities calling a meeting shall specify in
writing the Certificates held by the Holders of the Securities exercising the
right to call a meeting and only those

                                      -47-
<PAGE>

Securities represented by such Certificates shall be counted for purposes of
determining whether the required percentage set forth in the second sentence of
this paragraph has been met.

            (b)   Except to the extent otherwise provided in the terms of the
Securities, the following provisions shall apply to meetings of Holders of the
Securities:

                  (i)   notice of any such meeting shall be given to all the
            Holders of the Securities having a right to vote thereat at least 7
            days and not more than 60 days before the date of such meeting.
            Whenever a vote, consent or approval of the Holders of the
            Securities is permitted or required under this Declaration or the
            rules of any stock exchange on which the Capital Securities are
            listed or admitted for trading, if any, such vote, consent or
            approval may be given at a meeting of the Holders of the Securities.
            Any action that may be taken at a meeting of the Holders of the
            Securities may be taken without a meeting if a consent in writing
            setting forth the action so taken is signed by the Holders of the
            Securities owning not less than the minimum amount of Securities
            that would be necessary to authorize or take such action at a
            meeting at which all Holders of the Securities having a right to
            vote thereon were present and voting. Prompt notice of the taking of
            action without a meeting shall be given to the Holders of the
            Securities entitled to vote who have not consented in writing. The
            Administrators may specify that any written ballot submitted to the
            Holders of the Securities for the purpose of taking any action
            without a meeting shall be returned to the Trust within the time
            specified by the Administrators;

                  (ii)  each Holder of a Security may authorize any Person to
            act for it by proxy on all matters in which a Holder of Securities
            is entitled to participate, including waiving notice of any meeting,
            or voting or participating at a meeting. No proxy shall be valid
            after the expiration of 11 months from the date thereof unless
            otherwise provided in the proxy. Every proxy shall be revocable at
            the pleasure of the Holder of the Securities executing it. Except as
            otherwise provided herein, all matters relating to the giving,
            voting or validity of proxies shall be governed by the General
            Corporation Law of the State of Delaware relating to proxies, and
            judicial interpretations thereunder, as if the Trust were a Delaware
            corporation and the Holders of the Securities were stockholders of a
            Delaware corporation; each meeting of the Holders of the Securities
            shall be conducted by the Administrators or by such other Person
            that the Administrators may designate; and

                  (iii) unless the Statutory Trust Act, this Declaration, the
            terms of the Securities, the Trust Indenture Act or the listing
            rules of any stock exchange on which the Capital Securities are then
            listed for trading, if any, otherwise provides, the Administrators,
            in their sole discretion, shall establish all other provisions
            relating to meetings of Holders of Securities, including notice of
            the time, place or purpose of any meeting at which any matter is to
            be voted on by any Holders of the Securities, waiver of any such
            notice, action by consent without a meeting, the establishment of a
            record date, quorum requirements, voting in person or by proxy or
            any other matter with respect to the exercise of any such right to
            vote;

                                      -48-
<PAGE>

            provided, however, that each meeting shall be conducted in the
            United States (as that term is defined in Treasury Regulations
            Section 301.7701-7).

                                  ARTICLE XII
                    REPRESENTATIONS OF INSTITUTIONAL TRUSTEE
                              AND DELAWARE TRUSTEE

      SECTION 12.1. Representations and Warranties of Institutional Trustee. The
Trustee that acts as initial Institutional Trustee represents and warrants to
the Trust and to the Sponsor at the date of this Declaration, and each Successor
Institutional Trustee represents and warrants to the Trust and the Sponsor at
the time of the Successor Institutional Trustee's acceptance of its appointment
as Institutional Trustee, that:

            (a)   the Institutional Trustee is a banking corporation or national
association with trust powers, duly organized, validly existing and in good
standing under the laws of the State of New York or the United States of
America, respectively, with trust power and authority to execute and deliver,
and to carry out and perform its obligations under the terms of, this
Declaration;

            (b)   the Institutional Trustee has a combined capital and surplus
of at least fifty million U.S. dollars ($50,000,000);

            (c)   the Institutional Trustee is not an affiliate of the Sponsor,
nor does the Institutional Trustee offer or provide credit or credit enhancement
to the Trust;

            (d)   the execution, delivery and performance by the Institutional
Trustee of this Declaration has been duly authorized by all necessary action on
the part of the Institutional Trustee. This Declaration has been duly executed
and delivered by the Institutional Trustee, and under Delaware law (excluding
any securities laws) constitutes a legal, valid and binding obligation of the
Institutional Trustee, enforceable against it in accordance with its terms,
subject to applicable bankruptcy, reorganization, moratorium, insolvency and
other similar laws affecting creditors' rights generally and to general
principles of equity and the discretion of the court (regardless of whether
considered in a proceeding in equity or at law);

            (e)   the execution, delivery and performance of this Declaration by
the Institutional Trustee does not conflict with or constitute a breach of the
charter or by-laws of the Institutional Trustee; and

            (f)   no consent, approval or authorization of, or registration with
or notice to, any state or federal banking authority governing the trust powers
of the Institutional Trustee is required for the execution, delivery or
performance by the Institutional Trustee of this Declaration.

      SECTION 12.2. Representations and Warranties of Delaware Trustee. The
Trustee that acts as initial Delaware Trustee represents and warrants to the
Trust and to the Sponsor at the date of this Declaration, and each Successor
Delaware Trustee represents and warrants to the Trust and the Sponsor at the
time of the Successor Delaware Trustee's acceptance of its appointment as
Delaware Trustee that:

                                      -49-
<PAGE>

            (a)   if it is not a natural person, the Delaware Trustee is duly
organized, validly existing and has its principal place of business in the State
of Delaware;

            (b)   if it is not a natural person, the execution, delivery and
performance by the Delaware Trustee of this Declaration has been duly authorized
by all necessary corporate action on the part of the Delaware Trustee. This
Declaration has been duly executed and delivered by the Delaware Trustee, and
under Delaware law (excluding any securities laws) constitutes a legal, valid
and binding obligation of the Delaware Trustee, enforceable against it in
accordance with its terms, subject to applicable bankruptcy, reorganization,
moratorium, insolvency and other similar laws affecting creditors' rights
generally and to general principles of equity and the discretion of the court
(regardless of whether considered in a proceeding in equity or at law);

            (c)   if it is not a natural person, the execution, delivery and
performance of this Declaration by the Delaware Trustee does not conflict with
or constitute a breach of the articles of association or by-laws of the Delaware
Trustee;

            (d)   it has trust power and authority to execute and deliver, and
to carry out and perform its obligations under the terms of, this Declaration;

            (e)   no consent, approval or authorization of, or registration with
or notice to, any state or federal banking authority governing the trust powers
of the Delaware Trustee is required for the execution, delivery or performance
by the Delaware Trustee of this Declaration; and

            (f)   if the Delaware Trustee is a natural person, he or she is a
resident of the State of Delaware.

                                  ARTICLE XIII
                                  MISCELLANEOUS

      SECTION 13.1. Notices. All notices provided for in this Declaration shall
be in writing, duly signed by the party giving such notice, and shall be
delivered, telecopied (which telecopy shall be followed by notice delivered or
mailed by first class mail) or mailed by first class mail, as follows:

            (a)   if given to the Trust, in care of the Administrators at the
Trust's mailing address set forth below (or such other address as the Trust may
give notice of to the Holders of the Securities):

                  PB Capital Trust II
                  c/o The PB Financial Services Corporation
                  9570 Medlock Bridge Road
                  Duluth, GA 30097
                  Attention: Kelly J. Johnson
                  Telecopy: 770-814-8804
                  Telephone: 770-814-8100

                                      -50-
<PAGE>

            (b)   if given to the Delaware Trustee, at the mailing address set
forth below (or such other address as the Delaware Trustee may give notice of to
the Holders of the Securities):

                  Chase Bank USA, National Association
                  500 Stanton Christiana Rd., FL3/OPS4
                  Newark, DE 19713
                  Attn: Institutional Trust Services
                  Telecopy: 302-552-6280
                  Telephone: 302-552-6279

            (c)   if given to the Institutional Trustee, at the Institutional
Trustee's mailing address set forth below (or such other address as the
Institutional Trustee may give notice of to the Holders of the Securities):

                  JPMorgan Chase Bank, National Association
                  600 Travis Street, 50th Floor
                  Houston, TX 77002
                  Attention:  Institutional Trust Services
                  PB Capital Trust II
                  Telecopy: 713-216-2101
                  Telephone: 713-216-4781

            (d)   if given to the Holder of the Common Securities, at the
mailing address of the Sponsor set forth below (or such other address as the
Holder of the Common Securities may give notice of to the Trust):

                  The PB Financial Services Corporation
                  9570 Medlock Bridge Road
                  Duluth, GA 30097
                  Attention: Kelly J. Johnson
                  Telecopy: 770-814-8804
                  Telephone: The PB Financial Services Corporation

            (e)   if given to any other Holder, at the address set forth on the
books and records of the Trust.

All such notices shall be deemed to have been given when received in person,
telecopied with receipt confirmed, or mailed by first class mail, postage
prepaid, except that if a notice or other document is refused delivery or cannot
be delivered because of a changed address of which no notice was given, such
notice or other document shall be deemed to have been delivered on the date of
such refusal or inability to deliver.

      SECTION 13.2. Governing Law. This Declaration and the rights and
obligations of the parties hereunder shall be governed by and interpreted in
accordance with the law of the State of Delaware and all rights, obligations and
remedies shall be governed by such laws without regard to the principles of
conflict of laws of the State of Delaware or any other jurisdiction that would
call for the application of the law of any jurisdiction other than the State of
Delaware.

                                      -51-
<PAGE>

      SECTION 13.3. Submission to Jurisdiction.

            (a)   Each of the parties hereto agrees that any suit, action or
proceeding arising out of or based upon this Declaration, or the transactions
contemplated hereby, may be instituted in any of the courts of the State of New
York located in the Borough of Manhattan, City and State of New York, and
further agrees to submit to the jurisdiction of Delaware, and to any actions
that are instituted in state or Federal court in Wilmington, Delaware and any
competent court in the place of its corporate domicile in respect of actions
brought against it as a defendant. In addition, each such party irrevocably
waives, to the fullest extent permitted by law, any objection which it may now
or hereafter have to the laying of the venue of such suit, action or proceeding
brought in any such court and irrevocably waives any claim that any such suit,
action or proceeding brought in any such court has been brought in an
inconvenient forum and irrevocably waives any right to which it may be entitled
on account of its place of corporate domicile. Each such party hereby
irrevocably waives any and all right to trial by jury in any legal proceeding
arising out of or relating to this Declaration or the transactions contemplated
hereby. Each such party agrees that final judgment in any proceedings brought in
such a court shall be conclusive and binding upon it and may be enforced in any
court to the jurisdiction of which it is subject by a suit upon such judgment.

            (b)   Each of the Sponsor, the Trustees, the Administrators and the
Holder of the Common Securities irrevocably consents to the service of process
on it in any such suit, action or proceeding by the mailing thereof by
registered or certified mail, postage prepaid, to it at its address given in or
pursuant to Section 13.1 hereof.

            (c)   To the extent permitted by law, nothing herein contained shall
preclude any party from effecting service of process in any lawful manner or
from bringing any suit, action or proceeding in respect of this Declaration in
any other state, country or place.

      SECTION 13.4. Intention of the Parties. It is the intention of the parties
hereto that the Trust be classified for United States federal income tax
purposes as a grantor trust. The provisions of this Declaration shall be
interpreted to further this intention of the parties.

      SECTION 13.5. Headings. Headings contained in this Declaration are
inserted for convenience of reference only and do not affect the interpretation
of this Declaration or any provision hereof.

      SECTION 13.6. Successors and Assigns. Whenever in this Declaration any of
the parties hereto is named or referred to, the successors and assigns of such
party shall be deemed to be included, and all covenants and agreements in this
Declaration by the Sponsor and the Trustees shall bind and inure to the benefit
of their respective successors and assigns, whether or not so expressed.

      SECTION 13.7. Partial Enforceability. If any provision of this
Declaration, or the application of such provision to any Person or circumstance,
shall be held invalid, the remainder of this Declaration, or the application of
such provision to persons or circumstances other than those to which it is held
invalid, shall not be affected thereby.

                                      -52-
<PAGE>

      SECTION 13.8. Counterparts. This Declaration may contain more than one
counterpart of the signature page and this Declaration may be executed by the
affixing of the signature of each of the Trustees and Administrators to any of
such counterpart signature pages. All of such counterpart signature pages shall
be read as though one, and they shall have the same force and effect as though
all of the signers had signed a single signature page.

                                      -53-
<PAGE>

      IN WITNESS WHEREOF, the undersigned have caused this Declaration to be
duly executed as of the day and year first above written.

                                           CHASE BANK USA, NATIONAL ASSOCIATION,
                                               as Delaware Trustee

                                           By: /s/ Sarika M. Sheth
                                               Name:  Sarika M. Sheth
                                               Title: Trust Officer

                                           JPMORGAN CHASE BANK, NATIONAL
                                             ASSOCIATION,
                                               as Institutional Trustee

                                           By: /s/ Maria D. Calzado
                                               Name:  Maria D. Calzado
                                               Title: Vice-President

                                           The PB Financial Services
                                             Corporation,
                                               as Sponsor

                                           By: /s/ Kelly J. Johnson
                                               Name:  Kelly J. Johnson
                                               Title: Chief Financial Officer

                                           By: /s/ Monty G. Wilson
                                               Administrator

                                           By: /s/ Kelly J. Johnson
                                               Administrator

                                      -54-
<PAGE>

                                     ANNEX I

                                    TERMS OF
                             CAPITAL SECURITIES AND
                                COMMON SECURITIES

      Pursuant to Section 6.1 of the Amended and Restated Declaration of Trust,
dated as of March 29, 2005 (as amended from time to time, the "Declaration"),
the designation, rights, privileges, restrictions, preferences and other terms
and provisions of the Capital Securities and the Common Securities are set out
below (each capitalized term used but not defined herein has the meaning set
forth in the Declaration):

      1.    Designation and Number.

      (a)   Capital Securities. 5,000 Capital Securities of PB Capital Trust II
(the "Trust"), with an aggregate stated liquidation amount with respect to the
assets of the Trust of Five Million Dollars ($5,000,000) and a stated
liquidation amount with respect to the assets of the Trust of $1,000 per Capital
Security, are hereby designated for the purposes of identification only as the
"TP Securities" (the "Capital Securities"). The Capital Security Certificates
evidencing the Capital Securities shall be substantially in the form of Exhibit
A-1 to the Declaration, with such changes and additions thereto or deletions
therefrom as may be required by ordinary usage, custom or practice or to conform
to the rules of any stock exchange on which the Capital Securities are listed,
if any.

      (b)   Common Securities. 155 Common Securities of the Trust (the "Common
Securities") will be evidenced by Common Security Certificates substantially in
the form of Exhibit A-2 to the Declaration, with such changes and additions
thereto or deletions therefrom as may be required by ordinary usage, custom or
practice. In the absence of an Event of Default, the Common Securities will have
an aggregate stated liquidation amount with respect to the assets of the Trust
of One Hundred Fifty Five Thousand Dollars ($155,000) and a stated liquidation
amount with respect to the assets of the Trust of $1,000 per Common Security.

      2.    Distributions.

      (a)   Distributions payable on each Security will be payable at a variable
per annum rate of interest, reset quarterly, equal to LIBOR, as determined on
the LIBOR Determination Date for such Distribution Payment Period, plus 1.95%
(the "Coupon Rate") of the stated liquidation amount of $1,000 per Security
(provided, however, that the Coupon Rate for any Distribution Payment Period may
not exceed the highest rate permitted by New York law, as the same may be
modified by United States law of general applicability), such Coupon Rate being
the rate of interest payable on the Debentures to be held by the Institutional
Trustee. Except as set forth below in respect of an Extension Period,
Distributions in arrears for more than one quarterly period will bear interest
thereon compounded quarterly at the applicable Coupon Rate for each such
quarterly period (to the extent permitted by applicable law). The term
"Distributions" as used herein includes cash distributions, any such compounded
distributions and any Additional Interest payable on the Debentures unless
otherwise stated. A Distribution is payable only to the extent that payments are
made in respect of the Debentures held by the

                                     A-I-1
<PAGE>

Institutional Trustee and to the extent the Institutional Trustee has funds
legally available in the Property Account therefor. The amount of Distributions
payable for any Distribution Payment Period will be computed for any full
quarterly Distribution Payment Period on the basis of a 360-day year and the
actual number of days elapsed in the relevant Distribution period; provided,
however, that upon the occurrence of a Special Event redemption pursuant to
paragraph 4(a) below the amounts payable pursuant to this Declaration shall be
calculated as set forth in the definition of Special Redemption Price.

      (b)   LIBOR shall be determined by the Calculation Agent in accordance
with the following provisions:

                  (1)   On the second LIBOR Business Day (provided, that on such
            day commercial banks are open for business (including dealings in
            foreign currency deposits) in London (a "LIBOR Banking Day"), and
            otherwise the next preceding LIBOR Business Day that is also a LIBOR
            Banking Day) prior to March 15, June 15, September 15 and December
            15 (or, with respect to the first Distribution Payment Period, on
            March 25, 2005), (each such day, a "LIBOR Determination Date") for
            such Distribution Payment Period), the Calculation Agent shall
            obtain the rate for three-month U.S. Dollar deposits in Europe,
            which appears on Telerate Page 3750 (as defined in the International
            Swaps and Derivatives Association, Inc. 2000 Interest Rate and
            Currency Exchange Definitions) or such other page as may replace
            such Telerate Page 3750 on the Moneyline Telerate, Inc. service (or
            such other service or services as may be nominated by the British
            Banker's Association as the information vendor for the purpose of
            displaying London interbank offered rates for U.S. dollar deposits),
            as of 11:00 a.m. (London time) on such LIBOR Determination Date, and
            the rate so obtained shall be LIBOR for such Distribution Payment
            Period. "LIBOR Business Day" means any day that is not a Saturday,
            Sunday or other day on which commercial banking institutions in The
            City of New York or Wilmington, Delaware are authorized or obligated
            by law or executive order to be closed. If such rate is superseded
            on Telerate Page 3750 by a corrected rate before 12:00 noon (London
            time) on the same LIBOR Determination Date, the corrected rate as so
            substituted will be the applicable LIBOR for that Distribution
            Payment Period.

                  (2)   If, on any LIBOR Determination Date, such rate does not
            appear on Telerate Page 3750 or such other page as may replace such
            Telerate Page 3750 on the Moneyline Telerate, Inc. service (or such
            other service or services as may be nominated by the British
            Banker's Association as the information vendor for the purpose of
            displaying London interbank offered rates for U.S. dollar deposits),
            the Calculation Agent shall determine the arithmetic mean of the
            offered quotations of the Reference Banks (as defined below) to
            leading banks in the London Interbank market for three-month U.S.
            Dollar deposits in Europe (in an amount determined by the
            Calculation Agent) by reference to requests for quotations as of
            approximately 11:00 a.m. (London time) on the LIBOR Determination
            Date made by the Calculation Agent to the Reference Banks. If, on
            any LIBOR Determination Date, at least two of the Reference Banks
            provide such quotations, LIBOR shall equal the arithmetic mean of
            such quotations. If, on any

                                     A-I-2
<PAGE>

            LIBOR Determination Date, only one or none of the Reference Banks
            provide such a quotation, LIBOR shall be deemed to be the arithmetic
            mean of the offered quotations that at least two leading banks in
            the City of New York (as selected by the Calculation Agent) are
            quoting on the relevant LIBOR Determination Date for three-month
            U.S. Dollar deposits in Europe at approximately 11:00 a.m. (London
            time) (in an amount determined by the Calculation Agent). As used
            herein, "Reference Banks" means four major banks in the London
            Interbank market selected by the Calculation Agent.

                  (3)   If the Calculation Agent is required but is unable to
            determine a rate in accordance with at least one of the procedures
            provided above, LIBOR for the applicable Distribution Payment Period
            shall be LIBOR in effect for the immediately preceding Distribution
            Payment Period.

      (c)   All percentages resulting from any calculations on the Securities
will be rounded, if necessary, to the nearest one hundred-thousandth of a
percentage point, with five one-millionths of a percentage point rounded upward
(e.g., 9.876545% (or .09876545) being rounded to 9.87655% (or .0987655)), and
all dollar amounts used in or resulting from such calculation will be rounded to
the nearest cent (with one-half cent being rounded upward).

      (d)   On each LIBOR Determination Date, the Calculation Agent shall
notify, in writing, the Sponsor and the Paying Agent of the applicable Coupon
Rate in effect for the related Distribution Payment Period. The Calculation
Agent shall, upon the request of the Holder of any Securities, provide the
Coupon Rate then in effect. All calculations made by the Calculation Agent in
the absence of manifest error shall be conclusive for all purposes and binding
on the Sponsor and the Holders of the Securities. The Paying Agent shall be
entitled to rely on information received from the Calculation Agent or the
Sponsor as to the Coupon Rate. The Sponsor shall, from time to time, provide any
necessary information to the Paying Agent relating to any original issue
discount and interest on the Securities that is included in any payment and
reportable for taxable income calculation purposes.

      (e)   Distributions on the Securities will be cumulative, will accrue from
the date of original issuance, and will be payable, subject to extension of
Distribution payment periods as described herein, quarterly in arrears on March
15, June 15, September 15 and December 15 of each year, commencing June 15, 2005
(each, a "Distribution Payment Date"). Subject to prior submission of Notice (as
defined in the Indenture), the Debenture Issuer has the right under the
Indenture to defer payments of interest on the Debentures by extending the
interest distribution period for up to 20 consecutive quarterly periods (each,
an "Extension Period") at any time and from time to time on the Debentures,
subject to the conditions described below, during which Extension Period no
interest shall be due and payable (except any Additional Interest that may be
due and payable). During any Extension Period, interest will continue to accrue
on the Debentures, and interest on such accrued interest (such accrued interest
and interest thereon referred to herein as "Deferred Interest") will accrue at
an annual rate equal to the Coupon Rate in effect for each such Extension
Period, compounded quarterly from the date such Deferred Interest would have
been payable were it not for the Extension Period, to the extent permitted by
law. No Extension Period may end on a date other than a Distribution Payment
Date. At the end of any such Extension Period, the Debenture Issuer shall pay
all Deferred Interest then accrued

                                     A-I-3
<PAGE>

and unpaid on the Debentures; provided, however, that no Extension Period may
extend beyond the Maturity Date; and provided, further, that, during any such
Extension Period, the Debenture Issuer may not (i) declare or pay any dividends
or distributions on, or redeem, purchase, acquire, or make a liquidation payment
with respect to, any of the Debenture Issuer's capital stock or (ii) make any
payment of principal or premium or interest on or repay, repurchase or redeem
any debt securities of the Debenture Issuer that rank pari passu in all respects
with or junior in interest to the Debentures or (iii) make any payment under any
guarantees of the Debenture Issuer that rank in all respects pari passu with or
junior in interest to the Guarantee (other than (a) repurchases, redemptions or
other acquisitions of shares of capital stock of the Debenture Issuer (A) in
connection with any employment contract, benefit plan or other similar
arrangement with or for the benefit of one or more employees, officers,
directors or consultants, (B) in connection with a dividend reinvestment or
stockholder stock purchase plan or (C) in connection with the issuance of
capital stock of the Debenture Issuer (or securities convertible into or
exercisable for such capital stock), as consideration in an acquisition
transaction entered into prior to the applicable Extension Period, (b) as a
result of any exchange, reclassification, combination or conversion of any class
or series of the Debenture Issuer's capital stock (or any capital stock of a
subsidiary of the Debenture Issuer) for any class or series of the Debenture
Issuer's capital stock or of any class or series of the Debenture Issuer's
indebtedness for any class or series of the Debenture Issuer's capital stock,
(c) the purchase of fractional interests in shares of the Debenture Issuer's
capital stock pursuant to the conversion or exchange provisions of such capital
stock or the security being converted or exchanged, (d) any declaration of a
dividend in connection with any stockholder's rights plan, or the issuance of
rights, stock or other property under any stockholder's rights plan, or the
redemption or repurchase of rights pursuant thereto, or (e) any dividend in the
form of stock, warrants, options or other rights where the dividend stock or the
stock issuable upon exercise of such warrants, options or other rights is the
same stock as that on which the dividend is being paid or ranks pari passu with
or junior to such stock). Prior to the termination of any Extension Period, the
Debenture Issuer may further extend such period; provided, that such period
together with all such previous and further consecutive extensions thereof shall
not exceed 20 consecutive quarterly periods, or extend beyond the Maturity Date.
Upon the termination of any Extension Period and upon the payment of all
Deferred Interest, the Debenture Issuer may commence a new Extension Period,
subject to the foregoing requirements. No interest or Deferred Interest shall be
due and payable during an Extension Period, except at the end thereof, but
Deferred Interest shall accrue upon each installment of interest that would
otherwise have been due and payable during such Extension Period until such
installment is paid. If Distributions are deferred, the Distributions due shall
be paid on the date that the related Extension Period terminates, or, if such
date is not a Distribution Payment Date, on the immediately following
Distribution Payment Date, to Holders of the Securities as they appear on the
books and records of the Trust on the record date immediately preceding such
date. Distributions on the Securities must be paid on the dates payable (after
giving effect to any Extension Period) to the extent that the Trust has funds
legally available for the payment of such distributions in the Property Account
of the Trust. The Trust's funds available for Distribution to the Holders of the
Securities will be limited to payments received from the Debenture Issuer. The
payment of Distributions out of moneys held by the Trust is guaranteed by the
Guarantor pursuant to the Guarantee.

      (f)   Distributions on the Securities will be payable to the Holders
thereof as they appear on the books and records of the Registrar on the relevant
record dates. The relevant

                                     A-I-4
<PAGE>

record dates shall be selected by the Administrators, which dates shall be 15
days before the relevant Distribution Payment Date. Distributions payable on any
Securities that are not punctually paid on any Distribution Payment Date, as a
result of the Debenture Issuer having failed to make a payment under the
Debentures, as the case may be, when due (taking into account any Extension
Period), will cease to be payable to the Person in whose name such Securities
are registered on the relevant record date, and such defaulted Distribution will
instead be payable to the Person in whose name such Securities are registered on
the special record date or other specified date determined in accordance with
the Indenture. Notwithstanding anything to the contrary contained herein, if any
Distribution Payment Date, other than on the Maturity Date, any Redemption Date
or the Special Redemption Date, falls on a day that is not a Business Day, then
any Distributions payable will be paid on, and such Distribution Payment Date
will be moved to, the next succeeding Business Day, and additional Distributions
will accrue for each day that such payment is delayed as a result thereof. If
the Maturity Date, any Redemption Date or the Special Redemption Date falls on a
day that is not a Business Day, then the principal, premium, if any, and/or
Distributions payable on such date will be paid on the next succeeding Business
Day, and no additional Distributions will accrue in respect of such payment made
on such next succeeding Business Day.

      (g)   In the event that there is any money or other property held by or
for the Trust that is not accounted for hereunder, such property shall be
distributed pro rata (as defined herein) among the Holders of the Securities.

      3.    Liquidation Distribution Upon Dissolution. In the event of the
voluntary or involuntary liquidation, dissolution, winding-up or termination of
the Trust (each, a "Liquidation") other than in connection with a redemption of
the Debentures, the Holders of the Securities will be entitled to receive out of
the assets of the Trust available for distribution to Holders of the Securities,
after satisfaction of liabilities to creditors of the Trust (to the extent not
satisfied by the Debenture Issuer), distributions equal to the aggregate of the
stated liquidation amount of $1,000 per Security plus accrued and unpaid
Distributions thereon to the date of payment (such amount being the "Liquidation
Distribution"), unless in connection with such Liquidation, the Debentures in an
aggregate stated principal amount equal to the aggregate stated liquidation
amount of such Securities, with an interest rate equal to the Coupon Rate of,
and bearing accrued and unpaid interest in an amount equal to the accrued and
unpaid Distributions on, and having the same record date as, such Securities,
after paying or making reasonable provision to pay all claims and obligations of
the Trust in accordance with Section 3808(e) of the Statutory Trust Act, shall
be distributed on a Pro Rata basis to the Holders of the Securities in exchange
for such Securities.

      The Sponsor, as the Holder of all of the Common Securities, has the right
at any time to, upon receipt of an opinion of nationally recognized tax counsel
that Holders will not recognize any gain or loss for United States federal
income tax purposes as a result of the distribution Debentures, dissolve the
Trust (including without limitation upon the occurrence of a Tax Event, an
Investment Company Event or a Capital Treatment Event), subject to the receipt
by the Debenture Issuer of prior approval from any regulatory authority having
jurisdiction over the Sponsor that is primarily responsible for regulating the
activities of the Sponsor if such approval is then required under applicable
capital guidelines or policies of such regulatory authority, and, after
satisfaction of liabilities to creditors of the Trust, cause the Debentures to
be distributed to

                                     A-I-5
<PAGE>

the Holders of the Securities on a Pro Rata basis in accordance with the
aggregate stated liquidation amount thereof.

      The Trust shall dissolve on the first to occur of (i) March 29, 2040, the
expiration of the term of the Trust, (ii) a Bankruptcy Event with respect to the
Sponsor, the Trust or the Debenture Issuer, (iii) (other than in connection with
a merger, consolidation or similar transaction not prohibited by the Indenture,
this Declaration or the Guarantee, as the case may be) the filing of a
certificate of dissolution or its equivalent with respect to the Sponsor or upon
the revocation of the charter of the Sponsor and the expiration of 90 days after
the date of revocation without a reinstatement thereof, (iv) the distribution to
the Holders of the Securities of the Debentures, upon exercise of the right of
the Holder of all of the outstanding Common Securities to dissolve the Trust as
described above, (v) the entry of a decree of a judicial dissolution of the
Sponsor or the Trust, or (vi) when all of the Securities shall have been called
for redemption and the amounts necessary for redemption thereof shall have been
paid to the Holders in accordance with the terms of the Securities. As soon as
practicable after the dissolution of the Trust and upon completion of the
winding up of the Trust, the Trust shall terminate upon the filing of a
certificate of cancellation with the Secretary of State of the State of
Delaware.

      If a Liquidation of the Trust occurs as described in clause (i), (ii),
(iii) or (v) in the immediately preceding paragraph, the Trust shall be
liquidated by the Institutional Trustee of the Trust as expeditiously as such
Trustee determines to be possible by distributing, after satisfaction of
liabilities to creditors of the Trust as provided by applicable law, to the
Holders of the Securities, the Debentures on a Pro Rata basis to the extent not
satisfied by the Debenture Issuer, unless such distribution is determined by the
Institutional Trustee not to be practical, in which event such Holders will be
entitled to receive out of the assets of the Trust available for distribution to
the Holders, after satisfaction of liabilities to creditors of the Trust to the
extent not satisfied by the Debenture Issuer, an amount equal to the Liquidation
Distribution. An early Liquidation of the Trust pursuant to clause (iv) of the
immediately preceding paragraph shall occur if the Institutional Trustee
determines that such Liquidation is possible by distributing, after satisfaction
of liabilities to creditors of Trust, to the Holders of the Securities on a Pro
Rata basis, the Debentures, and such distribution occurs.

      If, upon any such Liquidation, the Liquidation Distribution can be paid
only in part because the Trust has insufficient assets available to pay in full
the aggregate Liquidation Distribution, then the amounts payable directly by the
Trust on such Capital Securities shall be paid to the Holders of the Securities
on a Pro Rata basis, except that if an Event of Default has occurred and is
continuing, the Capital Securities shall have a preference over the Common
Securities with regard to such distributions.

      Upon any such Liquidation of the Trust involving a distribution of the
Debentures, if at the time of such Liquidation, the Capital Securities were
rated by at least one nationally-recognized statistical rating organization, the
Debenture Issuer will use its reasonable best efforts to obtain from at least
one such or other rating organization a rating for the Debentures.

      After the date for any distribution of the Debentures upon dissolution of
the Trust, (i) the Securities of the Trust will be deemed to be no longer
outstanding, (ii) any certificates representing the Capital Securities will be
deemed to represent undivided beneficial interests in

                                     A-I-6
<PAGE>

such of the Debentures as have an aggregate principal amount equal to the
aggregate stated liquidation amount of, with an interest rate identical to the
distribution rate of, and bearing accrued and unpaid interest equal to accrued
and unpaid distributions on, the Securities until such certificates are
presented to the Debenture Issuer or its agent for transfer or reissuance (and
until such certificates are so surrendered, no payments of interest or principal
shall be made to Holders of Securities in respect of any payments due and
payable under the Debentures) and (iii) all rights of Holders of Securities
under the Capital Securities or the Common Securities, as applicable, shall
cease, except the right of such Holders to receive Debentures upon surrender of
certificates representing such Securities.

      4.    Redemption and Distribution.

      (a)   The Debentures will mature on June 15, 2035. The Debentures may be
redeemed by the Debenture Issuer, in whole or in part, on any March 15, June 15,
September 15 or December 15 on or after June 15, 2010 at the Redemption Price,
upon not less than 30 nor more than 60 days' notice to Holders of such
Debentures. In addition, upon the occurrence and continuation of a Tax Event, an
Investment Company Event or a Capital Treatment Event, the Debentures may be
redeemed by the Debenture Issuer in whole or in part, at any time within 90 days
following the occurrence of such Tax Event, Investment Company Event or Capital
Treatment Event, as the case may be (the "Special Redemption Date"), at the
Special Redemption Price, upon not less than 30 nor more than 60 days' notice to
Holders of the Debentures so long as such Tax Event, Investment Company Event or
Capital Treatment Event, as the case may be, is continuing. In each case, the
right of the Debenture Issuer to redeem the Debentures is subject to the
Debenture Issuer having received prior approval from any regulatory authority
having jurisdiction over the Debenture Issuer, if such approval is then required
under applicable capital guidelines or policies of such regulatory authority.

      "Tax Event" means the receipt by the Debenture Issuer and the Trust of an
opinion of counsel experienced in such matters to the effect that, as a result
of any amendment to or change (including any announced prospective change) in
the laws or any regulations thereunder of the United States or any political
subdivision or taxing authority thereof or therein, or as a result of any
official administrative pronouncement (including any private letter ruling,
technical advice memorandum, regulatory procedure, notice or announcement) (an
"Administrative Action") or judicial decision interpreting or applying such laws
or regulations, regardless of whether such Administrative Action or judicial
decision is issued to or in connection with a proceeding involving the Debenture
Issuer or the Trust and whether or not subject to review or appeal, which
amendment, clarification, change, Administrative Action or decision is enacted,
promulgated or announced, in each case on or after the date of original issuance
of the Debentures, there is more than an insubstantial risk that: (i) the Trust
is, or will be within 90 days of the date of such opinion, subject to United
States federal income tax with respect to income received or accrued on the
Debentures; (ii) interest payable by the Debenture Issuer on the Debentures is
not, or within 90 days of the date of such opinion, will not be, deductible by
the Debenture Issuer, in whole or in part, for United States federal income tax
purposes; or (iii) the Trust is, or will be within 90 days of the date of such
opinion, subject to more than a de minimis amount of other taxes (including
withholding taxes), duties, assessments or other governmental charges.

                                     A-I-7
<PAGE>

      "Investment Company Event" means the receipt by the Debenture Issuer and
the Trust of an opinion of counsel experienced in such matters to the effect
that, as a result of a change in law or regulation or written change in
interpretation or application of law or regulation by any legislative body,
court, governmental agency or regulatory authority, there is more than an
insubstantial risk that the Trust is or, within 90 days of the date of such
opinion will be, considered an "investment company" that is required to be
registered under the Investment Company Act, which change or prospective change
becomes effective or would become effective, as the case may be, on or after the
date of the original issuance of the Debentures.

      "Capital Treatment Event" means, if the Debenture Issuer is organized and
existing under the laws of the United States or any state thereof or the
District of Columbia, the receipt by the Debenture Issuer and the Trust of an
Opinion of Counsel experienced in such matters to the effect that, as a result
of (a) any amendment to, or change in, the laws, rules or regulations of the
United States or any political subdivision thereof or therein, or any rules,
guidelines or policies of any applicable regulatory authority for the Debenture
Issuer or (b) any official or administrative pronouncement or action or decision
interpreting or applying such laws, rules or regulations, which amendment or
change is effective or which pronouncement, action or decision is announced on
or after the date of original issuance of the Debentures, there is more than an
insubstantial risk that, within 90 days of the receipt of such opinion, the
aggregate Liquidation Amount of the Capital Securities will not be eligible to
be treated by the Debenture Issuer as "Tier 1 Capital" (or the then equivalent
thereof) for purposes of the capital adequacy guidelines of the Federal Reserve
(or any successor regulatory authority with jurisdiction over bank or financial
holding companies), as then in effect and applicable to the Debenture Issuer (or
if the Debenture Issuer is not a bank holding company, such guidelines applied
to the Debenture Issuer as if the Debenture Issuer were subject to such
guidelines); provided, however, that the inability of the Debenture Issuer to
treat all or any portion of the aggregate Liquidation Amount of the Capital
Securities as Tier 1 Capital shall not constitute the basis for a Capital
Treatment Event, if such inability results from the Debenture Issuer having
cumulative preferred stock, minority interests in consolidated subsidiaries, or
any other class of security or interest which the Federal Reserve or OTS, as
applicable, may now or hereafter accord Tier 1 Capital treatment in excess of
the amount which may now or hereafter qualify for treatment as Tier 1 Capital
under applicable capital adequacy guidelines; provided further, however, that
the distribution of the Debentures in connection with the liquidation of the
Trust by the Debenture Issuer shall not in and of itself constitute a Capital
Treatment Event unless such liquidation shall have occurred in connection with a
Tax Event or an Investment Company Event.

      "Special Event" means any of a Capital Treatment Event, a Tax Event or an
Investment Company Event.

      "Special Redemption Price" means, with respect to the redemption of any
Debentures following a Special Event, an amount in cash equal to 103.525% of the
principal amount of Debentures to be redeemed prior to June 15, 2006 and
thereafter equal to the percentage of the principal amount of the Debentures
that is specified below for the Special Redemption Date plus, in each case,
unpaid interest accrued thereon to the Special Redemption Date:

                                     A-I-8
<PAGE>

<TABLE>
<CAPTION>
  Special Redemption During the
12-Month Period Beginning March 15   Percentage of Principal Amount
----------------------------------   ------------------------------
<S>                                  <C>
               2006                             103.140%
               2007                             102.355%
               2008                             101.570%
               2009                             100.785%
       2010 and thereafter                      100.000%
</TABLE>

      "Redemption Date" means the date fixed for the redemption of Capital
Securities, which shall be any March 15, June 15, September 15 or December 15 on
or after June 15, 2010.

      "Redemption Price" means 100% of the principal amount of the Debentures
being redeemed plus accrued and unpaid interest on such Debentures to the
Redemption Date.

      (b)   Upon the repayment in full at maturity or redemption in whole or in
part of the Debentures (other than following the distribution of the Debentures
to the Holders of the Securities), the proceeds from such repayment or payment
shall concurrently be applied to redeem Pro Rata at the applicable Redemption
Price, Securities having an aggregate liquidation amount equal to the aggregate
principal amount of the Debentures so repaid or redeemed; provided, however,
that holders of such Securities shall be given not less than 30 nor more than 60
days' notice of such redemption (other than at the scheduled maturity of the
Debentures).

      (c)   If fewer than all the outstanding Securities are to be so redeemed,
the Common Securities and the Capital Securities will be redeemed Pro Rata and
the Capital Securities to be redeemed will be as described in Section 4(e)(ii)
below.

      (d)   The Trust may not redeem fewer than all the outstanding Capital
Securities unless all accrued and unpaid Distributions have been paid on all
Capital Securities for all quarterly Distribution periods terminating on or
before the date of redemption.

      (e)   Redemption or Distribution Procedures.

                  (i)   Notice of any redemption of, or notice of distribution
            of the Debentures in exchange for, the Securities (a
            "Redemption/Distribution Notice") will be given by the Trust by mail
            to each Holder of Securities to be redeemed or exchanged not fewer
            than 30 nor more than 60 days before the date fixed for redemption
            or exchange thereof which, in the case of a redemption, will be the
            date fixed for redemption of the Debentures. For purposes of the
            calculation of the date of redemption or exchange and the dates on
            which notices are given pursuant to this Section 4(e)(i), a
            Redemption/Distribution Notice shall be deemed to be given on the
            day such notice is first mailed by first-class mail, postage
            prepaid, to Holders of such Securities. Each Redemption/Distribution
            Notice shall be addressed to the Holders of such Securities at the
            address of each such Holder appearing on the books and records of
            the Registrar. No defect in the Redemption/Distribution Notice or in
            the mailing thereof with respect to any Holder shall affect the
            validity of the redemption or exchange proceedings with respect to
            any other Holder.

                                     A-I-9
<PAGE>

                  (ii)  In the event that fewer than all the outstanding
            Securities are to be redeemed, the Securities to be redeemed shall
            be redeemed Pro Rata from each Holder of Capital Securities.

                  (iii) If the Securities are to be redeemed and the Trust gives
            a Redemption/Distribution Notice, which notice may only be issued if
            the Debentures are redeemed as set out in this Section 4 (which
            notice will be irrevocable), then, provided, that the Institutional
            Trustee has a sufficient amount of cash in connection with the
            related redemption or maturity of the Debentures, the Institutional
            Trustee will, with respect to Book-Entry Capital Securities, on the
            Redemption Date, irrevocably deposit with the Depositary for such
            Book-Entry Capital Securities, to the extent available therefore,
            funds sufficient to pay the relevant Redemption Price and will give
            such Depositary irrevocable instructions and authority to pay the
            Redemption Price to the Owners of the Capital Securities. With
            respect to Capital Securities that are not Book-Entry Capital
            Securities, the Institutional Trustee will pay, to the extent
            available therefore, the relevant Redemption Price to the Holders of
            such Securities by check mailed to the address of each such Holder
            appearing on the books and records of the Trust on the redemption
            date. If a Redemption/Distribution Notice shall have been given and
            funds deposited as required, then immediately prior to the close of
            business on the date of such deposit, Distributions will cease to
            accrue on the Securities so called for redemption and all rights of
            Holders of such Securities so called for redemption will cease,
            except the right of the Holders of such Securities to receive the
            applicable Redemption Price specified in Section 4(a). If any date
            fixed for redemption of Securities is not a Business Day, then
            payment of any such Redemption Price payable on such date will be
            made on the next succeeding day that is a Business Day except that,
            if such Business Day falls in the next calendar year, such payment
            will be made on the immediately preceding Business Day, in each case
            with the same force and effect as if made on such date fixed for
            redemption. If payment of the Redemption Price in respect of any
            Securities is improperly withheld or refused and not paid either by
            the Trust or by the Debenture Issuer as guarantor pursuant to the
            Guarantee, Distributions on such Securities will continue to accrue
            at the then applicable rate from the original redemption date to the
            actual date of payment, in which case the actual payment date will
            be considered the date fixed for redemption for purposes of
            calculating the Redemption Price. In the event of any redemption of
            the Capital Securities issued by the Trust in part, the Trust shall
            not be required to (i) issue, register the transfer of or exchange
            any Security during a period beginning at the opening of business 15
            days before any selection for redemption of the Capital Securities
            and ending at the close of business on the earliest date on which
            the relevant notice of redemption is deemed to have been given to
            all Holders of the Capital Securities to be so redeemed or (ii)
            register the transfer of or exchange any Capital Securities so
            selected for redemption, in whole or in part, except for the
            unredeemed portion of any Capital Securities being redeemed in part.

                                     A-I-10
<PAGE>

                  (iv)  Redemption/Distribution Notices shall be sent by the
            Trust (A) in respect of the Capital Securities, to the Holders
            thereof, and (B) in respect of the Common Securities, to the Holder
            thereof.

                  (v)   Subject to the foregoing and applicable law (including,
            without limitation, United States federal securities laws), and
            provided, that the acquiror is not the Holder of the Common
            Securities or the obligor under the Indenture, the Sponsor or any of
            its subsidiaries may at anytime and from time to time purchase
            outstanding Capital Securities by tender, in the open market or by
            private agreement.

      5.    Voting Rights - Capital Securities.

      (a)   Except as provided under Sections 5(b) and 7 and as otherwise
required by law and the Declaration, the Holders of the Capital Securities will
have no voting rights. The Administrators are required to call a meeting of the
Holders of the Capital Securities if directed to do so by Holders of not less
than 10% in liquidation amount of the Capital Securities.

      (b)   Subject to the requirements of obtaining a tax opinion by the
Institutional Trustee in certain circumstances set forth in the last sentence of
this paragraph, the Holders of a Majority in liquidation amount of the Capital
Securities, voting separately as a class, have the right to direct the time,
method, and place of conducting any proceeding for any remedy available to the
Institutional Trustee, or exercising any trust or power conferred upon the
Institutional Trustee under the Declaration, including the right to direct the
Institutional Trustee, as holder of the Debentures, to (i) exercise the remedies
available under the Indenture as the holder of the Debentures, (ii) waive any
past default that is waivable under the Indenture, (iii) exercise any right to
rescind or annul a declaration that the principal of all the Debentures shall be
due and payable or (iv) consent on behalf of all the Holders of the Capital
Securities to any amendment, modification or termination of the Indenture or the
Debentures where such consent shall be required; provided, however, that, where
a consent or action under the Indenture would require the consent or act of the
holders of greater than a simple majority in principal amount of Debentures (a
"Super Majority") affected thereby, the Institutional Trustee may only give such
consent or take such action at the written direction of the Holders of not less
than the proportion in liquidation amount of the Capital Securities outstanding
which the relevant Super Majority represents of the aggregate principal amount
of the Debentures outstanding. If the Institutional Trustee fails to enforce its
rights under the Debentures after the Holders of a Majority or Super Majority,
as the case may be, in liquidation amount of such Capital Securities have so
directed the Institutional Trustee, to the fullest extent permitted by law, a
Holder of the Capital Securities may institute a legal proceeding directly
against the Debenture Issuer to enforce the Institutional Trustee's rights under
the Debentures without first instituting any legal proceeding against the
Institutional Trustee or any other person or entity. Notwithstanding the
foregoing, if an Event of Default has occurred and is continuing and such event
is attributable to the failure of the Debenture Issuer to pay interest or
premium, if any, on or principal of the Debentures on the date such interest,
premium, if any, on or principal is payable (or in the case of redemption, the
redemption date), then a Holder of record of the Capital Securities may directly
institute a proceeding for enforcement of payment, on or after the respective
due dates specified in the Debentures, to such Holder directly of the principal
of or premium, if any, or interest on the

                                     A-I-11
<PAGE>

Debentures having an aggregate principal amount equal to the aggregate
liquidation amount of the Capital Securities of such Holder. The Institutional
Trustee shall notify all Holders of the Capital Securities of any default
actually known to the Institutional Trustee with respect to the Debentures
unless (x) such default has been cured prior to the giving of such notice or (y)
the Institutional Trustee determines in good faith that the withholding of such
notice is in the interest of the Holders of such Capital Securities, except
where the default relates to the payment of principal of or interest on any of
the Debentures. Such notice shall state that such Indenture Event of Default
also constitutes an Event of Default hereunder. Except with respect to directing
the time, method and place of conducting a proceeding for a remedy, the
Institutional Trustee shall not take any of the actions described in clause (i),
(ii) or (iii) above unless the Institutional Trustee has obtained an opinion of
tax counsel to the effect that, as a result of such action, the Trust will not
be classified as other than a grantor trust for United States federal income tax
purposes.

      In the event the consent of the Institutional Trustee, as the holder of
the Debentures is required under the Indenture with respect to any amendment,
modification or termination of the Indenture, the Institutional Trustee may
request the written direction of the Holders of the Securities with respect to
such amendment, modification or termination and shall vote with respect to such
amendment, modification or termination as directed by a Majority in liquidation
amount of the Securities voting together as a single class; provided, however,
that where a consent under the Indenture would require the consent of a Super
Majority, the Institutional Trustee may only give such consent at the written
direction of the Holders of not less than the proportion in liquidation amount
of such Securities outstanding which the relevant Super Majority represents of
the aggregate principal amount of the Debentures outstanding. The Institutional
Trustee shall not take any such action in accordance with the written directions
of the Holders of the Securities unless the Institutional Trustee has obtained
an opinion of tax counsel to the effect that, as a result of such action, the
Trust will not be classified as other than a grantor trust for United States
federal income tax purposes.

      A waiver of an Indenture Event of Default will constitute a waiver of the
corresponding Event of Default hereunder. Any required approval or direction of
Holders of the Capital Securities may be given at a separate meeting of Holders
of the Capital Securities convened for such purpose, at a meeting of all of the
Holders of the Securities in the Trust or pursuant to written consent. The
Institutional Trustee will cause a notice of any meeting at which Holders of the
Capital Securities are entitled to vote, or of any matter upon which action by
written consent of such Holders is to be taken, to be mailed to each Holder of
record of the Capital Securities. Each such notice will include a statement
setting forth the following information (i) the date of such meeting or the date
by which such action is to be taken, (ii) a description of any resolution
proposed for adoption at such meeting on which such Holders are entitled to vote
or of such matter upon which written consent is sought and (iii) instructions
for the delivery of proxies or consents. No vote or consent of the Holders of
the Capital Securities will be required for the Trust to redeem and cancel
Capital Securities or to distribute the Debentures in accordance with the
Declaration and the terms of the Securities.

      Notwithstanding that Holders of the Capital Securities are entitled to
vote or consent under any of the circumstances described above, any of the
Capital Securities that are owned by the Sponsor or any Affiliate of the Sponsor
shall not entitle the Holder thereof to vote or consent

                                     A-I-12
<PAGE>

and shall, for purposes of such vote or consent, be treated as if such Capital
Securities were not outstanding.

      In no event will Holders of the Capital Securities have the right to vote
to appoint, remove or replace the Administrators, which voting rights are vested
exclusively in the Sponsor as the Holder of all of the Common Securities of the
Trust. Under certain circumstances as more fully described in the Declaration,
Holders of Capital Securities have the right to vote to appoint, remove or
replace the Institutional Trustee and the Delaware Trustee.

      6.    Voting Rights - Common Securities.

      (a)   Except as provided under Sections 6(b), 6(c) and 7 and as otherwise
required by law and the Declaration, the Common Securities will have no voting
rights.

      (b)   The Holders of the Common Securities are entitled, in accordance
with Article IV of the Declaration, to vote to appoint, remove or replace any
Administrators.

      (c)   Subject to Section 6.7 of the Declaration and only after each Event
of Default (if any) with respect to the Capital Securities has been cured,
waived or otherwise eliminated and subject to the requirements of the second to
last sentence of this paragraph, the Holders of a Majority in liquidation amount
of the Common Securities, voting separately as a class, may direct the time,
method, and place of conducting any proceeding for any remedy available to the
Institutional Trustee, or exercising any trust or power conferred upon the
Institutional Trustee under the Declaration, including (i) directing the time,
method, place of conducting any proceeding for any remedy available to the
Debenture Trustee, or exercising any trust or power conferred on the Debenture
Trustee with respect to the Debentures, (ii) waiving any past default and its
consequences that are waivable under the Indenture, or (iii) exercising any
right to rescind or annul a declaration that the principal of all the Debentures
shall be due and payable, provided, however, that, where a consent or action
under the Indenture would require a Super Majority, the Institutional Trustee
may only give such consent or take such action at the written direction of the
Holders of not less than the proportion in liquidation amount of the Common
Securities which the relevant Super Majority represents of the aggregate
principal amount of the Debentures outstanding. Notwithstanding this Section
6(c), the Institutional Trustee shall not revoke any action previously
authorized or approved by a vote or consent of the Holders of the Capital
Securities. Other than with respect to directing the time, method and place of
conducting any proceeding for any remedy available to the Institutional Trustee
or the Debenture Trustee as set forth above, the Institutional Trustee shall not
take any action described in clause (i), (ii) or (iii) above, unless the
Institutional Trustee has obtained an opinion of tax counsel to the effect that
for the purposes of United States federal income tax the Trust will not be
classified as other than a grantor trust on account of such action. If the
Institutional Trustee fails to enforce its rights under the Declaration, to the
fullest extent permitted by law any Holder of the Common Securities may
institute a legal proceeding directly against any Person to enforce the
Institutional Trustee's rights under the Declaration, without first instituting
a legal proceeding against the Institutional Trustee or any other Person.

      Any approval or direction of Holders of the Common Securities may be given
at a separate meeting of Holders of the Common Securities convened for such
purpose, at a meeting

                                     A-I-13
<PAGE>

of all of the Holders of the Securities in the Trust or pursuant to written
consent. The Administrators will cause a notice of any meeting at which Holders
of the Common Securities are entitled to vote, or of any matter upon which
action by written consent of such Holders is to be taken, to be mailed to each
Holder of the Common Securities. Each such notice will include a statement
setting forth (i) the date of such meeting or the date by which such action is
to be taken, (ii) a description of any resolution proposed for adoption at such
meeting on which such Holders are entitled to vote or of such matter upon which
written consent is sought and (iii) instructions for the delivery of proxies or
consents.

      No vote or consent of the Holders of the Common Securities will be
required for the Trust to redeem and cancel Common Securities or to distribute
the Debentures in accordance with the Declaration and the terms of the
Securities.

      7.    Amendments to Declaration and Indenture.

      (a)   In addition to any requirements under Section 11.1 of the
Declaration, if any proposed amendment to the Declaration provides for, or the
Trustees otherwise propose to effect, (i) any action that would adversely affect
the powers, preferences or special rights of the Securities, whether by way of
amendment to the Declaration or otherwise, or (ii) the Liquidation of the Trust,
other than as described in Section 7.1 of the Declaration, then the Holders of
outstanding Securities, voting together as a single class, will be entitled to
vote on such amendment or proposal and such amendment or proposal shall not be
effective except with the approval of the Holders of not less than a Majority in
liquidation amount of the Securities affected thereby; provided, however, if any
amendment or proposal referred to in clause (i) above would adversely affect
only the Capital Securities or only the Common Securities, then only the
affected class will be entitled to vote on such amendment or proposal and such
amendment or proposal shall not be effective except with the approval of a
Majority in liquidation amount of such class of Securities.

      (b)   In the event the consent of the Institutional Trustee as the holder
of the Debentures is required under the Indenture with respect to any amendment,
modification or termination of the Indenture or the Debentures, the
Institutional Trustee shall request the written direction of the Holders of the
Securities with respect to such amendment, modification or termination and shall
vote with respect to such amendment, modification, or termination as directed by
a Majority in liquidation amount of the Securities voting together as a single
class; provided, however, that where a consent under the Indenture would require
a Super Majority, the Institutional Trustee may only give such consent at the
written direction of the Holders of not less than the proportion in liquidation
amount of the Securities which the relevant Super Majority represents of the
aggregate principal amount of the Debentures outstanding.

      (c)   Notwithstanding the foregoing, no amendment or modification may be
made to the Declaration if such amendment or modification would (i) cause the
Trust to be classified for purposes of United States federal income taxation as
other than a grantor trust, (ii) reduce or otherwise adversely affect the powers
of the Institutional Trustee or (iii) cause the Trust to be deemed an
"investment company" which is required to be registered under the Investment
Company Act.

                                     A-I-14
<PAGE>

      (d)   Notwithstanding any provision of the Declaration, the right of any
Holder of the Capital Securities to receive payment of distributions and other
payments upon redemption or otherwise, on or after their respective due dates,
or to institute a suit for the enforcement of any such payment on or after such
respective dates, shall not be impaired or affected without the consent of such
Holder. For the protection and enforcement of the foregoing provision, each and
every Holder of the Capital Securities shall be entitled to such relief as can
be given either at law or equity.

      8.    Pro Rata. A reference in these terms of the Securities to any
payment, distribution or treatment as being "Pro Rata" shall mean pro rata to
each Holder of the Securities according to the aggregate liquidation amount of
the Securities held by the relevant Holder in relation to the aggregate
liquidation amount of all Securities outstanding unless, in relation to a
payment, an Event of Default has occurred and is continuing, in which case any
funds available to make such payment shall be paid first to each Holder of the
Capital Securities Pro Rata according to the aggregate liquidation amount of the
Capital Securities held by the relevant Holder relative to the aggregate
liquidation amount of all Capital Securities outstanding, and only after
satisfaction of all amounts owed to the Holders of the Capital Securities, to
each Holder of the Common Securities Pro Rata according to the aggregate
liquidation amount of the Common Securities held by the relevant Holder relative
to the aggregate liquidation amount of all Common Securities outstanding.

      9.    Ranking. The Capital Securities rank pari passu with, and payment
thereon shall be made Pro Rata with, the Common Securities except that, where an
Event of Default has occurred and is continuing, the rights of Holders of the
Common Securities to receive payment of Distributions and payments upon
liquidation, redemption and otherwise are subordinated to the rights of the
Holders of the Capital Securities with the result that no payment of any
Distribution on, or Redemption Price or Special Redemption Price of, any Common
Security, and no other payment on account of redemption, liquidation or other
acquisition of Common Securities, shall be made unless payment in full in cash
of all accumulated and unpaid Distributions on all outstanding Capital
Securities for all distribution periods terminating on or prior thereto, or in
the case of payment of the Redemption Price or Special Redemption Price the full
amount of such Redemption Price or the Special Redemption Price on all
outstanding Capital Securities then called for redemption, shall have been made
or provided for, and all funds immediately available to the Institutional
Trustee shall first be applied to the payment in full in cash of all
Distributions on, or the Redemption Price or the Special Redemption Price of,
the Capital Securities then due and payable.

      10.   Acceptance of Guarantee and Indenture. Each Holder of the Capital
Securities and the Common Securities, by the acceptance of such Securities,
agrees to the provisions of the Guarantee, including the subordination
provisions therein and to the provisions of the Indenture.

      11.   No Preemptive Rights. The Holders of the Securities shall have no,
and the issuance of the Securities is not subject to, preemptive or similar
rights to subscribe for any additional securities.

                                     A-I-15
<PAGE>

      12.   Miscellaneous. These terms constitute a part of the Declaration. The
Sponsor will provide a copy of the Declaration, the Guarantee, and the Indenture
to a Holder without charge on written request to the Sponsor at its principal
place of business.

                                     A-I-16
<PAGE>

                                   EXHIBIT A-1

                      FORM OF CAPITAL SECURITY CERTIFICATE

                           [FORM OF FACE OF SECURITY]

      THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE "SECURITIES ACT"), OR ANY STATE SECURITIES LAWS OR ANY OTHER
APPLICABLE SECURITIES LAWS. NEITHER THIS SECURITY NOR ANY INTEREST OR
PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED,
ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR
UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT. THE HOLDER OF THIS SECURITY BY ITS
ACCEPTANCE HEREOF AGREES TO OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY ONLY
(A) TO THE DEBENTURE ISSUER OR THE TRUST, (B) PURSUANT TO RULE 144A UNDER THE
SECURITIES ACT ("RULE 144A") TO A PERSON THE HOLDER REASONABLY BELIEVES IS A
"QUALIFIED INSTITUTIONAL BUYER" AS DEFINED IN RULE 144A THAT PURCHASES FOR ITS
OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE
IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (C) TO A "NON
U.S. PERSON" IN AN "OFFSHORE TRANSACTION" PURSUANT TO REGULATION S UNDER THE
SECURITIES ACT, (D) PURSUANT TO AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS
OF THE SECURITIES ACT TO AN "ACCREDITED INVESTOR" WITHIN THE MEANING OF
SUBPARAGRAPH (a) (1), (2), (3) OR (7) OF RULE 501 UNDER THE SECURITIES ACT THAT
IS ACQUIRING THE SECURITY FOR ITS OWN ACCOUNT, OR FOR THE ACCOUNT OF SUCH AN
"ACCREDITED INVESTOR," FOR INVESTMENT PURPOSES AND NOT WITH A VIEW TO, OR FOR
OFFER OR SALE IN CONNECTION WITH, ANY DISTRIBUTION IN VIOLATION OF THE
SECURITIES ACT, OR (E) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE DEBENTURE
ISSUER'S AND THE TRUST'S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER
PURSUANT TO CLAUSES (D) OR (E) TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL,
CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM IN
ACCORDANCE WITH THE AMENDED AND RESTATED DECLARATION OF TRUST, A COPY OF WHICH
MAY BE OBTAINED FROM THE DEBENTURE ISSUER OR THE TRUST. THE HOLDER OF THIS
SECURITY BY ITS ACCEPTANCE HEREOF AGREES THAT IT WILL COMPLY WITH THE FOREGOING
RESTRICTIONS.

      THE HOLDER OF THIS SECURITY BY ITS ACCEPTANCE HEREOF AGREES, REPRESENTS
AND WARRANTS THAT IT WILL NOT ENGAGE IN HEDGING TRANSACTIONS INVOLVING THIS
SECURITY UNLESS SUCH TRANSACTIONS ARE IN COMPLIANCE WITH THE SECURITIES ACT.

      THE HOLDER OF THIS SECURITY BY ITS ACCEPTANCE HEREOF ALSO AGREES,
REPRESENTS AND WARRANTS THAT IT IS NOT AN EMPLOYEE BENEFIT,

                                     A-1-1
<PAGE>

INDIVIDUAL RETIREMENT ACCOUNT OR OTHER PLAN OR ARRANGEMENT SUBJECT TO TITLE I OF
THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED ("ERISA"), OR
SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE "CODE"),
(EACH A "PLAN"), OR AN ENTITY WHOSE UNDERLYING ASSETS INCLUDE "PLAN ASSETS" BY
REASON OF ANY PLAN'S INVESTMENT IN THE ENTITY AND NO PERSON INVESTING "PLAN
ASSETS" OF ANY PLAN MAY ACQUIRE OR HOLD THIS SECURITY OR ANY INTEREST THEREIN,
UNLESS SUCH PURCHASER OR HOLDER IS ELIGIBLE FOR THE EXEMPTION RELIEF AVAILABLE
UNDER U.S. DEPARTMENT OF LABOR PROHIBITED TRANSACTION CLASS EXEMPTION 96-23,
95-60, 91-38, 90-1 OR 84-14 OR ANOTHER APPLICABLE EXEMPTION OR ITS PURCHASE AND
HOLDING OF THIS SECURITY IS NOT PROHIBITED BY SECTION 406 OF ERISA OR SECTION
4975 OF THE CODE WITH RESPECT TO SUCH PURCHASE OR HOLDING. ANY PURCHASER OR
HOLDER OF THIS SECURITY OR ANY INTEREST THEREIN WILL BE DEEMED TO HAVE
REPRESENTED BY ITS PURCHASE AND HOLDING THEREOF THAT EITHER (i) IT IS NOT AN
EMPLOYEE BENEFIT PLAN WITHIN THE MEANING OF SECTION 3(3) OF ERISA, OR A PLAN TO
WHICH SECTION 4975 OF THE CODE IS APPLICABLE, A TRUSTEE OR OTHER PERSON ACTING
ON BEHALF OF AN EMPLOYEE BENEFIT PLAN OR PLAN, OR ANY OTHER PERSON OR ENTITY
USING THE ASSETS OF ANY EMPLOYEE BENEFIT PLAN OR PLAN TO FINANCE SUCH PURCHASE,
OR (ii) SUCH PURCHASE WILL NOT RESULT IN A PROHIBITED TRANSACTION UNDER SECTION
406 OF ERISA OR SECTION 4975 OF THE CODE FOR WHICH THERE IS NO APPLICABLE
STATUTORY OR ADMINISTRATIVE EXEMPTION.

      IN CONNECTION WITH ANY TRANSFER, THE HOLDER OF THE CERTIFICATE WILL
DELIVER TO THE REGISTRAR AND TRANSFER AGENT SUCH CERTIFICATES AND OTHER
INFORMATION AS MAY BE REQUIRED BY THE AMENDED AND RESTATED DECLARATION OF TRUST
TO CONFIRM THAT THE TRANSFER COMPLIES WITH THE FOREGOING RESTRICTIONS.

      THIS SECURITY WILL BE ISSUED AND MAY BE TRANSFERRED ONLY IN BLOCKS HAVING
A LIQUIDATION AMOUNT OF NOT LESS THAN $100,000 AND MULTIPLES OF $1,000 IN EXCESS
THEREOF. ANY ATTEMPTED TRANSFER OF THIS SECURITY IN A BLOCK HAVING A LIQUIDATION
AMOUNT OF LESS THAN $100,000 SHALL BE DEEMED TO BE VOID AND OF NO LEGAL EFFECT
WHATSOEVER. ANY SUCH PURPORTED TRANSFEREE SHALL BE DEEMED NOT TO BE THE HOLDER
OF THIS SECURITY FOR ANY PURPOSE, INCLUDING, BUT NOT LIMITED TO, THE RECEIPT OF
DISTRIBUTIONS ON THIS SECURITY, AND SUCH PURPORTED TRANSFEREE SHALL BE DEEMED TO
HAVE NO INTEREST WHATSOEVER IN THIS SECURITY.

                                     A-1-2
<PAGE>

Certificate Number [P-001]                  Number of Capital Securities:  5,000

                    Certificate Evidencing Capital Securities

                                       of

                               PB Capital Trust II

                                  TP Securities

                (liquidation amount $1,000 per Capital Security)

      PB Capital Trust II, a statutory trust created under the laws of the State
of Delaware (the "Trust"), hereby certifies that Merrill Lynch, Pierce, Fenner &
Smith Incorporated (the "Holder"), is the registered owner of 5,000 capital
securities of the Trust representing undivided beneficial interests in the
assets of the Trust, designated the TP Securities (liquidation amount $1,000 per
Capital Security) (the "Capital Securities"). Subject to the Declaration (as
defined below), the Capital Securities are transferable on the books and records
of the Trust, in person or by a duly authorized attorney, upon surrender of this
Certificate duly endorsed and in proper form for transfer. The Capital
Securities represented hereby are issued pursuant to, and the designation,
rights, privileges, restrictions, preferences and other terms and provisions of
the Capital Securities shall in all respects be subject to, the provisions of
the Amended and Restated Declaration of Trust of the Trust, dated as of March
29, 2005, among Monty G. Watson and Kelly J. Johnson, as Administrators, Chase
Bank USA, National Association, as Delaware Trustee, JPMorgan Chase Bank,
National Association, as Institutional Trustee, The PB Financial Services
Corporation, as Sponsor, and the holders from time to time of undivided
beneficial interests in the assets of the Trust, including the designation of
the terms of the Capital Securities as set forth in Annex I to the Declaration,
as the same may be amended from time to time (the "Declaration"). Capitalized
terms used herein but not defined shall have the meaning given them in the
Declaration. The Holder is entitled to the benefits of the Guarantee to the
extent provided therein. The Sponsor will provide a copy of the Declaration, the
Guarantee, and the Indenture to the Holder without charge upon written request
to the Sponsor at its principal place of business.

      By acceptance of this Security, the Holder is bound by the Declaration and
is entitled to the benefits thereunder.

      By acceptance of this Security, the Holder agrees to treat, for United
States federal income tax purposes, the Debentures as indebtedness and the
Capital Securities as evidence of beneficial ownership in the Debentures.

      This Capital Security is governed by, and shall be construed in accordance
with, the laws of the State of Delaware, without regard to principles of
conflict of laws.

                                     A-1-3
<PAGE>

      IN WITNESS WHEREOF, the Trust has duly executed this certificate.

                                        PB Capital Trust II

                                        By: ____________________________________
                                            Name: ______________________________
                                            Title:  Administrator

                                        Dated: _________________________________

                          CERTIFICATE OF AUTHENTICATION

      This is one of the Capital Securities referred to in the within-mentioned
Declaration.

                                        JPMORGAN CHASE BANK, NATIONAL
                                        ASSOCIATION, not in its individual
                                        capacity but solely as Institutional
                                        Trustee

                                        By: ____________________________________
                                            Authorized Signatory

                                        Dated: _________________________________

                                     A-1-4
<PAGE>

                          [FORM OF REVERSE OF SECURITY]

      Distributions payable on each Capital Security will be payable at a
variable per annum rate of interest, reset quarterly, equal to LIBOR (as defined
in the Declaration) plus 1.95% (the "Coupon Rate") of the stated liquidation
amount of $1,000 per Capital Security (provided, however, that the Coupon Rate
for any Distribution Payment Period may not exceed the highest rate permitted by
New York law, as the same may be modified by United States law of general
applicability), such Coupon Rate being the rate of interest payable on the
Debentures to be held by the Institutional Trustee. Distributions in arrears for
more than one quarterly period will bear interest thereon compounded quarterly
at the then applicable Coupon Rate for each such quarterly period (to the extent
permitted by applicable law). The term "Distributions" as used herein includes
cash distributions, any such compounded distributions and any Additional
Interest payable on the Debentures unless otherwise stated. A Distribution is
payable only to the extent that payments are made in respect of the Debentures
held by the Institutional Trustee and to the extent the Institutional Trustee
has funds legally available in the Property Account therefor. The amount of
Distributions payable for any period will be computed for any full quarterly
Distribution period on the basis of a 360-day year and the actual number of days
elapsed in the relevant Distribution Payment Period.

      Except as otherwise described below, Distributions on the Capital
Securities will be cumulative, will accrue from the date of original issuance
and will be payable quarterly in arrears on March 15, June 15, September 15 and
December 15 of each year, commencing on June 15, 2005 (each, a "Distribution
Payment Date"). Upon submission of Notice, the Debenture Issuer has the right
under the Indenture to defer payments of interest on the Debentures by extending
the interest distribution period for up to 20 consecutive quarterly periods
(each, an "Extension Period") at any time and from time to time on the
Debentures, subject to the conditions described below, during which Extension
Period no interest shall be due and payable (except any Additional Interest that
may be due and payable). During any Extension Period, interest will continue to
accrue on the Debentures, and interest on such accrued interest (such accrued
interest and interest thereon referred to herein as "Deferred Interest") will
accrue at an annual rate equal to the Coupon Rate in effect for each such
Extension Period, compounded quarterly from the date such Deferred Interest
would have been payable were it not for the Extension Period, to the extent
permitted by law. No Extension Period may end on a date other than a
Distribution Payment Date. At the end of any such Extension Period, the
Debenture Issuer shall pay all Deferred Interest then accrued and unpaid on the
Debentures; provided, however, that no Extension Period may extend beyond the
Maturity Date. Prior to the termination of any Extension Period, the Debenture
Issuer may further extend such period; provided, that such period together with
all such previous and further consecutive extensions thereof shall not exceed 20
consecutive quarterly periods, or extend beyond the Maturity Date. Upon the
termination of any Extension Period and upon the payment of all Deferred
Interest, the Debenture Issuer may commence a new Extension Period, subject to
the foregoing requirements. No interest or Deferred Interest (except any
Additional Amounts that may be due and payable) shall be due and payable during
an Extension Period, except at the end thereof, but Deferred Interest shall
accrue upon each installment of interest that would otherwise have been due and
payable during such Extension Period until such installment is paid. If
Distributions are deferred, the Distributions due shall be paid on the date that
the related Extension Period terminates to Holders of the Securities as they
appear on the books and records of the Trust on the record date

                                     A-1-5
<PAGE>

immediately preceding such date. Distributions on the Securities must be paid on
the dates payable (after giving effect to any Extension Period) to the extent
that the Trust has funds legally available for the payment of such distributions
in the Property Account of the Trust. The Trust's funds available for
Distribution to the Holders of the Securities will be limited to payments
received from the Debenture Issuer. The payment of Distributions out of moneys
held by the Trust is guaranteed by the Guarantor pursuant to the Guarantee.

      The Capital Securities shall be redeemable as provided in the Declaration.

                                     A-1-6
<PAGE>

                                   ASSIGNMENT

      FOR VALUE RECEIVED, the undersigned assigns and transfers this Capital
Security Certificate to:

_______________________

_______________________

_______________________

(Insert assignee's social security or tax identification number)

_______________________

_______________________

_______________________

(Insert address and zip code of assignee),

and irrevocably appoints as ____________________________________________________
agent to transfer this Capital Security Certificate on the books of the Trust.
The agent may substitute another to act for it, him or her.

                  Date:____________________________

                  Signature: ______________________

      (Sign exactly as your name appears on the other side of this Capital
Security Certificate)

                  Signature Guarantee:(1) ________________________

------------------------
      (1) Signature must be guaranteed by an "eligible guarantor institution"
that is a bank, stockbroker, savings and loan association or credit union
meeting the requirements of the Security registrar, which requirements include
membership or participation in the Securities Transfer Agents Medallion Program
("STAMP") or such other "signature guarantee program" as may be determined by
the Security registrar in addition to, or in substitution for, STAMP, all in
accordance with the Securities Exchange Act of 1934, as amended.

                                     A-1-7
<PAGE>

                                   EXHIBIT A-2

                       FORM OF COMMON SECURITY CERTIFICATE

      THIS COMMON SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED, OR ANY STATE SECURITIES LAWS OR ANY OTHER APPLICABLE
SECURITIES LAWS AND MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED
EXCEPT PURSUANT TO AN EXEMPTION FROM REGISTRATION.

      EXCEPT AS SET FORTH IN SECTION 8.1(b) OF THE DECLARATION (AS DEFINED
BELOW), THIS SECURITY MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE
TRANSFERRED.

                                     A-2-1
<PAGE>

Certificate Number [C-001]                      Number of Common Securities: 155

                    Certificate Evidencing Common Securities
                                       of
                               PB Capital Trust II

      PB Capital Trust II, a statutory trust created under the laws of the State
of Delaware (the "Trust"), hereby certifies that The PB Financial Services
Corporation (the "Holder") is the registered owner of 155 common securities of
the Trust representing undivided beneficial interests in the assets of the Trust
(liquidation amount $1,000 per Common Security) (the "Common Securities"). The
Common Securities represented hereby are issued pursuant to, and the
designation, rights, privileges, restrictions, preferences and other terms and
provisions of the Common Securities shall in all respects be subject to, the
provisions of the Amended and Restated Declaration of Trust of the Trust, dated
as of March 29, 2005, among Monty G. Watson and Kelly J. Johnson, as
Administrators, Chase Bank USA, National Association, as Delaware Trustee,
JPMorgan Chase Bank, National Association, as Institutional Trustee, the Holder,
as Sponsor, and the holders from time to time of undivided beneficial interests
in the assets of the Trust, including the designation of the terms of the Common
Securities as set forth in Annex I to the Declaration, as the same may be
amended from time to time (the "Declaration"). Capitalized terms used herein but
not defined shall have the meaning given them in the Declaration. The Sponsor
will provide a copy of the Declaration and the Indenture to the Holder without
charge upon written request to the Sponsor at its principal place of business.

      As set forth in the Declaration, when an Event of Default has occurred and
is continuing, the rights of Holders of Common Securities to payment in respect
of Distributions and payments upon Liquidation, redemption or otherwise are
subordinated to the rights of payment of Holders of the Capital Securities.

      By acceptance of this Certificate, the Holder is bound by the Declaration
and is entitled to the benefits thereunder.

      By acceptance of this Certificate, the Holder agrees to treat, for United
States federal income tax purposes, the Debentures as indebtedness and the
Common Securities as evidence of undivided beneficial ownership in the
Debentures.

      This Common Security is governed by, and shall be construed in accordance
with, the laws of the State of Delaware, without regard to principles of
conflict of laws.

                                     A-2-2
<PAGE>

      IN WITNESS WHEREOF, the Trust has executed this certificate March 29,
2005.

                                        PB Capital Trust II

                                        By: ____________________________________
                                            Name: ______________________________
                                            Title:  Administrator

                                     A-2-3
<PAGE>

                          [FORM OF REVERSE OF SECURITY]

      Distributions payable on each Common Security will be identical in amount
to the Distributions payable on each Capital Security, which is at a variable
per annum rate of interest, reset quarterly, equal to LIBOR (as defined in the
Declaration) plus 1.95% (the "Coupon Rate") of the stated liquidation amount of
$1,000 per Capital Security (provided, however, that the Coupon Rate for any
Distribution Payment Period may not exceed the highest rate permitted by New
York law, as the same may be modified by United States law of general
applicability), such Coupon Rate being the rate of interest payable on the
Debentures to be held by the Institutional Trustee. Distributions in arrears for
more than one quarterly period will bear interest thereon compounded quarterly
at the then applicable Coupon Rate for each such quarterly period (to the extent
permitted by applicable law). The term "Distributions" as used herein includes
cash distributions, any such compounded distributions and any Additional
Interest payable on the Debentures unless otherwise stated. A Distribution is
payable only to the extent that payments are made in respect of the Debentures
held by the Institutional Trustee and to the extent the Institutional Trustee
has funds legally available in the Property Account therefor. The amount of
Distributions payable for any period will be computed for any full quarterly
Distribution period on the basis of a 360-day year and the actual number of days
elapsed in the relevant Distribution Payment Period.

      Except as otherwise described below, Distributions on the Common
Securities will be cumulative, will accrue from the date of original issuance
and will be payable quarterly in arrears on March 15, June 15, September 15 and
December 15 of each year, commencing on June 15, 2005 (each, a "Distribution
Payment Date"). Upon submission of Notice, the Debenture Issuer has the right
under the Indenture to defer payments of interest on the Debentures by extending
the interest distribution period for up to 20 consecutive quarterly periods
(each, an "Extension Period") at any time and from time to time on the
Debentures, subject to the conditions described below, during which Extension
Period no interest shall be due and payable (except any Additional Interest that
may be due and payable). During any Extension Period, interest will continue to
accrue on the Debentures, and interest on such accrued interest (such accrued
interest and interest thereon referred to herein as "Deferred Interest") will
accrue at an annual rate equal to the Coupon Rate in effect for each such
Extension Period, compounded quarterly from the date such Deferred Interest
would have been payable were it not for the Extension Period, to the extent
permitted by law. No Extension Period may end on a date other than a
Distribution Payment Date. At the end of any such Extension Period, the
Debenture Issuer shall pay all Deferred Interest then accrued and unpaid on the
Debentures; provided, however, that no Extension Period may extend beyond the
Maturity Date, Redemption Date or Special Redemption Date where applicable.
Prior to the termination of any Extension Period, the Debenture Issuer may
further extend such period, provided, that such period together with all such
previous and further consecutive extensions thereof shall not exceed 20
consecutive quarterly periods, or extend beyond the Maturity Date. Upon the
termination of any Extension Period and upon the payment of all Deferred
Interest, the Debenture Issuer may commence a new Extension Period, subject to
the foregoing requirements. No interest or Deferred Interest (except any
Additional Interest that may be due and payable) shall be due and payable during
an Extension Period, except at the end thereof, but Deferred Interest shall
accrue upon each installment of interest that would otherwise have been due and
payable during such Extension Period until such installment is paid. If
Distributions are deferred, the Distributions due shall be

                                     A-2-4
<PAGE>

paid on the date that the related Extension Period terminates to Holders of the
Securities as they appear on the books and records of the Trust on the record
date immediately preceding such date.

      Distributions on the Securities must be paid on the dates payable (after
giving effect to any Extension Period) to the extent that the Trust has funds
legally available for the payment of such distributions in the Property Account
of the Trust. The Trust's funds legally available for Distribution to the
Holders of the Securities will be limited to payments received from the
Debenture Issuer. The payment of Distributions out of moneys held by the Trust
is guaranteed by the Guarantor pursuant to the Guarantee.

      The Common Securities shall be redeemable as provided in the Declaration.

                                     A-2-5
<PAGE>

                                   ASSIGNMENT

      FOR VALUE RECEIVED, the undersigned assigns and transfers this Common
Security Certificate to:

_______________________

_______________________

_______________________

(Insert assignee's social security or tax identification number)

_______________________

_______________________

_______________________

(Insert address and zip code of assignee),

and irrevocably appoints _____________
as agent to transfer this Common Security Certificate on the books of the Trust.
The agent may substitute another to act for him or her.

                  Date:____________________________

                  Signature: ______________________

      (Sign exactly as your name appears on the other side of this Common
Security Certificate)

                  Signature Guarantee:(1) ________________________

------------------------
      (1) Signature must be guaranteed by an "eligible guarantor institution"
that is a bank, stockbroker, savings and loan association or credit union,
meeting the requirements of the Security registrar, which requirements include
membership or participation in the Securities Transfer Agents Medallion Program
("STAMP") or such other "signature guarantee program" as may be determined by
the Security registrar in addition to, or in substitution for, STAMP, all in
accordance with the Securities Exchange Act of 1934, as amended.

                                     A-2-6<PAGE>
                                                       Exhibit 10.34

                               NET LEASE AGREEMENT

                              WILLOWS COMMERCE PARK

                 L & A KESSLER FAMILY PARTNERS ET AL. - LANDLORD

              TFS ELECTRONIC MANUFACTURING SERVICES, INC. - TENANT

                           DATED: NOVEMBER 19th, 2004

<PAGE>

                               NET LEASE AGREEMENT
                              WILLOWS COMMERCE PARK

                                    CONTENTS

<TABLE>
<CAPTION>
                                                                       PAGE
<S>                                                                    <C>
ARTICLE I. TERM OF LEASE............................................      1
     Section 1.1 Term of Lease......................................      1
     Section 1.2 Option to Renew....................................      1

ARTICLE II. BASIC RENT..............................................      3
     Section 2.1 Initial Gross Rent Period..........................      3
     Section 2.2 Basic Rent.........................................      3
     Section 2.3 Basic Rent Adjustment..............................      4
     Section 2.4 Additional Rent....................................      4
     Section 2.5 Delinquent Payments................................      4
     Section 2.6 Security Deposit - Letter of Credit................      5

ARTICLE III. USE OF PREMISES........................................      6
     Section 3.1 Permitted Use......................................      6
     Section 3.2 Preservation of Premises...........................      6
     Section 3.3 Acceptance of Premises.............................      7
     Section 3.4 Static Control Floor Tiles.........................      7
     Section 3.5 Refurbishment Allowance............................      9

ARTICLE IV. COMMON AREA CHARGES AND IMPOSITIONS.....................     10
     Section 4.1 Definitions........................................     10
     Section 4.2 Payment............................................     13
     Section 4.3 Common Area Maintenance............................     13
     Section 4.4 Parking............................................     14

ARTICLE V. INSURANCE................................................     14
     Section 5.1 Landlord's Property Insurance and Waiver
        of Subrogation..............................................     14
     Section 5.2 Liability Insurance Coverage.......................     15
     Section 5.3 Insurance Provisions...............................     15
     Section 5.4 Tenant's Property Insurance and Waiver
        of Subrogation..............................................     15
     Section 5.5 Other Insurance....................................     16
     Section 5.6 Blanket Insurance Coverage.........................     16

ARTICLE VI. UTILITIES...............................................     16
     Section 6.1 Payment of Utilities...............................     16
     Section 6.2 Interruption.......................................     17
</TABLE>

                                        i

<PAGE>

<TABLE>
<CAPTION>
                                                                       PAGE
<S>                                                                    <C>
ARTICLE VII. REPAIRS................................................     17
     Section 7.1 Tenant's Repairs...................................     17
     Section 7.2 Landlord's Repairs.................................     18
     Section 7.3 Prohibition Against Waste..........................     19
     Section 7.4 Landlord's Right to Effect Repairs.................     19
     Section 7.5 Misuse or Neglect..................................     19

ARTICLE VIII. COMPLIANCE WITH LAWS AND ORDINANCES...................     19
     Section 8.1 Compliance with Laws and Ordinances................     19
     Section 8.2 Compliance with Permitted Encumbrances.............     20
     Section 8.3 Compliance with Hazardous Materials Laws...........     20
     Section 8.4 Indemnification....................................     21
     Section 8.5 Environmental Site Assessments.....................     22
     Section 8.6 Acts or Omissions Regarding Hazardous
         Materials..................................................     22
     Section 8.7 Survival...........................................     23

ARTICLE IX. MECHANIC'S LIENS AND OTHER LIENS........................     23
      Section 9.1 Freedom from Liens................................     23
      Section 9.2 Removal of Liens..................................     23

ARTICLE X. INTENT OF PARTIES........................................     24
      Section 10.1 Net Lease........................................     24

ARTICLE XI. DEFAULTS OF TENANT......................................     24
      Section 11.1 Event of Default.................................     24
      Section 11.2 Surrender of Premises............................     25
      Section 11.3 Reletting by Landlord............................     26
      Section 11.4 Non-Termination of Lease.........................     26
      Section 11.5 Termination of Lease.............................     26
      Section 11.6 No Waiver........................................     27
      Section 11.7 Remedies.........................................     27
      Section 11.8 Bankruptcy.......................................     28

ARTICLE XII. DESTRUCTION AND RESTORATION............................     28
      Section 12.1 Landlord's Repair Obligations....................     28
      Section 12.2 Other Damage.....................................     29
      Section 12.3 Rent Apportionment...............................     29
ARTICLE XIII. CONDEMNATION..........................................     30
      Section 13.1 General Rights Upon Condemnation.................     30
      Section 13.2 Award............................................     30
</TABLE>

                                       ii

<PAGE>

<TABLE>
<CAPTION>
                                                                       PAGE
<S>                                                                    <C>
ARTICLE XIV. ASSIGNMENT, SUBLETTING, ETC............................     31
      Section 14.1 Restriction on Transfer..........................     31
      Section 14.2 Restriction From Further Assignment..............     32
      Section 14.3 Tenant's Failure to Comply.......................     32
      Section 14.4 Sharing of Excess Rent...........................     33
      Section 14.5 Permitted Transfers..............................     33

ARTICLE XV. SUBORDINATION, NONDISTURBANCE, NOTICE TO MORTGAGEE
      AND ATTORNMENT................................................     34
      Section 15.1 Subordination by Tenant..........................     34
      Section 15.2 Landlord's Default...............................     34
      Section 15.3 Attornment.......................................     35

ARTICLE XVI. SIGNS..................................................     35
      Section 16.1 Tenant's Signs...................................     35

ARTICLE XVII. REPORTS BY TENANT.....................................     35
      Section 17.1 Annual Statements................................     35

ARTICLE XVIII. CHANGES AND ALTERATIONS..............................     36
      Section 18.1 Tenant's Changes and Alterations.................     36

 ARTICLE XIX. MISCELLANEOUS PROVISIONS..............................     36
      Section 19.1 Entry by Landlord................................     36
      Section 19.2 Exhibition of Premises...........................     37
      Section 19.3 Waiver...........................................     37
      Section 19.4 Indemnification..................................     37
      Section 19.5 Notices..........................................     38
      Section 19.6 Quiet Enjoyment..................................     38
      Section 19.7 Landlord's Continuing Obligations................     38
      Section 19.8 Estoppel.........................................     39
      Section 19.9 Rules and Regulations............................     40
      Section 19.10 Memorandum of Lease.............................     40
      Section 19.11 Severability....................................     40
      Section 19.12 Successors and Assigns..........................     40
      Section 19.13 Captions........................................     40
      Section 19.14 Relationship of Parties.........................     40
      Section 19.15 Entire Agreement................................     40
      Section 19.16 No Merger.......................................     40
      Section 19.17 Possession and Use..............................     41
      Section 19.18 No Surrender During Lease Term..................     41
      Section 19.19 Surrender of Premises...........................     41
      Section 19.20 Holding Over....................................     42
      Section 19.21 Approvals.......................................     42
      Section 19.22 Survival........................................     42
      Section 19.23 Attorney's Fees.................................     42
      Section 19.24 Landlord's Limited Liability....................     42
</TABLE>

                                       iii

<PAGE>

<TABLE>
<CAPTION>
                                                                 PAGE
<S>                                                              <C>
Section 19.25 Broker..........................................     43
Section 19.26 Preparation of Lease; Governing Law.............     44
Section 19.27 Joint and Several Liability.....................     44
Section 19.28 Time Is of the Essence..........................     44
Section 19.29 Words and Phrases...............................     44
Section 19.30 Prior Agreements................................     44
Section 19.31 No Oral Amendments..............................     44
Section 19.32 Tenant Defined..................................     45
Section 19.33 AT&T Wireless Communications Equipment..........     45
Section 19.34 Personal Property...............................     45
Section 19.35 Effectiveness of Lease..........................     45
</TABLE>

EXHIBITS:

      Exhibit A: Site Plan

      Exhibit A-1: Floor Plan

      Exhibit B: Legal Description and Permitted Encumbrances

      Exhibit C: Form of Subordination Agreement

      Exhibit D: Sign Standards

      Exhibit E: Rules and Regulations

      Exhibit F: Letter of Credit

      Exhibit G: Guaranty

                                       iv

<PAGE>

                               NET LEASE AGREEMENT

      This NET LEASE AGREEMENT ("Lease") is made as of the____________day of
November, 2004, by and between L & A KESSLER FAMILY PARTNERS, L.P., a California
limited partnership, MARILYN DREYFUSS, PHILLIP FRANCIS AND CURTIS BURR, AS
TRUSTEES OF THE EDWARD S. AGENO 1992 REVOCABLE TRUST, and KAY ENTERPRISES, a
California general partnership (collectively, "Landlord"), and TFS ELECTRONIC
MANUFACTURING SERVICES, INC., a Delaware corporation ("Tenant").

                                      GRANT

      Landlord, for and in consideration of the rents, covenants and agreements
hereinafter reserved and contained on the part of Tenant, its successors and
assigns, to be paid, kept, observed and performed, does hereby lease, rent, let
and demise unto Tenant, and Tenant does hereby take and hire, upon and subject
to the covenants, conditions and limitations hereinafter contained, the entirety
of Building One (the "Building") located as shown and designated on the Site
Plan attached hereto as EXHIBIT A (the "Site Plan") and containing approximately
135,286 square feet of rentable floor area as shown in the floor plan attached
hereto as EXHIBIT A-1 (the "Premises"). The Premises are part of the property
known as Willows Commerce Park (the "Park"), shown on the Site Plan and situated
in the City of Redmond, County of King and State of Washington, described in
EXHIBIT B attached hereto and made a part hereof, and Tenant is also hereby
granted the non-exclusive license to use, in common with Landlord and other
tenants of the Park and their respective officers, directors, licensees,
permittees, and customers, all Common Areas (as hereinafter defined) of the Park
and all rights appurtenant to the Premises as the same may exist from time to
time, subject to the terms and conditions of this Lease.

                                   ARTICLE I.
                                  TERM OF LEASE

      SECTION 1.1 TERM OF LEASE. The initial term of this Lease shall be seven
(7) years and shall commence on the date of mutual execution of this Lease (the
"Commencement Date"), and shall end at midnight on December 31, 2011. The
initial term of the Lease, as set forth above, is sometimes hereinafter referred
to as the "Initial Term." Any reference to the term of this Lease or similar
reference shall be a reference to the Initial Term together with any renewal
terms (if any) of this Lease or any extensions to or modifications of the
Initial Term (sometimes collectively referred to herein as the "Term").

      SECTION 1.2 OPTION TO RENEW. Tenant shall have the right, subject to all
provisions of this Section 1.2, to extend the term of this Lease for one (1)
successive period of five (5) years commencing on the seventh (7th) anniversary
of the Commencement Date and ending at midnight on the day prior to the twelfth
(12th) anniversary of the Commencement Date (the "Renewal Term"), provided that:

                                        1

<PAGE>

      (a)   This Lease is in full force and effect and Tenant is not in default
            in the performance of any of the terms, covenants and conditions
            herein contained (after receipt of notice and expiration of any
            applicable cure period) at the time of exercise of the right of
            renewal or at the time set for commencement of the Renewal Term;

      (b)   Tenant shall exercise its right to the Renewal Term provided herein,
            if at all, by notice to Landlord in writing of its election to
            exercise the right to renew the term of this Lease, at least twelve
            (12) months prior to the last day of the Initial Term; and

      (c)   The Renewal Term shall be upon the same terms, covenants and
            conditions as provided in this Lease; provided, however, that the
            monthly Basic Rent shall be one hundred percent (100%) of the then
            "fair market rent" (defined below) for the Premises. For purposes of
            this Lease, "fair market rent" shall mean the rental rate per
            rentable square foot that willing, non-equity tenants are paying for
            comparable space in the Park and in comparable buildings in the
            Redmond area for leases having a five-year term, considering all
            relevant factors, including the Building improvements, fixtures and
            other property comprising the Premises or leased hereunder
            (including the Personalty), market rent escalation, and market rate
            allowances, concessions and commissions. Landlord shall advise
            Tenant in writing of Landlord's determination of fair market rent
            for the Premises not later than thirty (30) days after Tenant gives
            notice to Landlord that Tenant exercises its renewal right. Within
            thirty (30) days after notice of Landlord's determination of fair
            market rent, Tenant shall notify Landlord in writing whether or not
            Tenant accepts Landlord's determination of fair market rent. If
            Tenant disagrees with Landlord's determination of fair market rent,
            Tenant shall advise Landlord of Tenant's determination of fair
            market rent in the notice required pursuant to the preceding
            sentence. If Tenant fails to notify Landlord within such thirty-day
            period, then Landlord shall notify Tenant in writing that failure to
            provide Tenant's determination within ten (10) days after the notice
            shall mean that Tenant's notice exercising its renewal rights under
            this Section 1.2 shall be deemed null and void. If Tenant, within
            such ten-day period, provides Tenant's determination to Landlord
            then such determination shall be deemed to have been timely made. If
            Tenant does not accept Landlord's determination of fair market rent,
            and Tenant has given the notice required above, the parties shall
            promptly meet and attempt to resolve their differences. If the
            parties have not agreed on the fair market rent within ninety (90)
            days after Tenant has exercised its renewal right, then, unless
            otherwise agreed in writing by the parties, the parties shall submit
            the matter to arbitration in accordance with the terms described
            below. The last day of such ninety-day period shall be referred to
            in this Lease as the "Arbitration Commencement Date." The
            arbitration will be conducted by a single MAI real estate appraiser
            who has been active over the five-year period ending on the
            Arbitration Commencement Date in the appraisal of office and
            warehouse properties in the Redmond/Woodinville/Bothell area and has
            not worked for either party during that time, hi the event that the
            parties cannot agree

                                        2

<PAGE>

            upon the appraiser, the appraiser will be appointed by the Seattle
            office of the American Arbitration Association upon the application
            of either party. Within thirty (30) days after the selection of the
            appraiser, the appraiser shall determine the fair market rent by
            selecting either the Landlord's or the Tenant's last determination
            of fair market rent, which determination may be modified by either
            party by notice to the other party given not later than ten (10)
            days after the Arbitration Commencement Date. The arbitrator may not
            select any other figure and shall have no power to modify the
            provisions of this Lease. The determination of the arbitrator will
            be final and binding upon Landlord and Tenant. The cost of the
            Arbitration will be shared equally by Landlord and Tenant.

                                   ARTICLE II.
                                   BASIC RENT

      SECTION 2.1 INITIAL GROSS RENT PERIOD. During the period from the
Commencement Date through December 31, 2004 (the "Gross Rent Period"), Tenant
shall pay to Landlord, without demand, setoff or deduction whatsoever, at the
office of Landlord set forth in Section 2.2 below, the sum of $40,631.25 per
month in advance. Landlord hereby agrees to grant Tenant a rent credit during
the first two (2) months of the Gross Rent Period equal to $26,921.66 per month.
Notwithstanding any other provision of this Lease to the contrary, including
without limitation Article IV (Common Area Charges and Impositions), Tenant
shall have no obligation during the Gross Rent Period to pay Common Area Costs
and Taxes attributable to the Premises to the extent such charges are not
greater than the costs for such items during the period of Tenant's occupancy of
a portion of the Premises under that Sublease Agreement dated May 11, 2004 (the
"Sublease") between SR Telecom Inc., as sublessor, and Tenant, as sublessee.
During the Gross Rent Period, Tenant shall be responsible for any excess of such
costs over the amounts for same during the Sublease term, together with all
other sums and charges imposed on Tenant under this Lease that are not expressly
covered by this Section 2.1. The parties acknowledge that the Sublease shall be
terminated on or before the Commencement Date in connection with the Termination
Agreement (defined in Section 19.35). On and after expiration of the Gross Rent
Period, Tenant shall pay when due all sums and charges required to be paid by it
under this Lease, including without limitation Common Area Costs and Taxes in
accordance with the terms of this Lease.

      SECTION 2.2 BASIC RENT. In consideration of the leasing of the Premises
under this Lease, Tenant covenants to pay Landlord, without previous demand
therefor and without any right of setoff or deduction whatsoever (except as
otherwise specifically permitted in this Lease), at the office of Landlord at:

           Willows Commerce Park
           c/o Kessler & Kessler
           1000 Marina Village Parkway, Suite 130
           Alameda, CA 94501

                                        3

<PAGE>

or at such other place or account as Landlord may from time to time designate in
writing, a base monthly rental in the amount of $92,500.00 payable monthly, in
advance, commencing on January 1, 2005, and continuing on the first day of each
month thereafter for the balance of the Term, subject to adjustment as provided
in Section 2.3. The rent provided for in Sections 2.1 and 2.2 is hereinafter
called the "Basic Rent." Basic Rent in the amount of $92,500 for the first full
month after the Rent Commencement Date shall be paid to Landlord upon execution
of this Lease. If the Term of this Lease does not commence on the first day of a
calendar month or end on the last day of a calendar month, the installment of
Basic Rent for the partial calendar month at the commencement or the termination
of the term shall be prorated on the basis of the number of days of the term
within such calendar month.

      SECTION 2.3 BASIC RENT ADJUSTMENT. Commencing on January 1, 2006 and
effective on January 1 of each year thereafter during the Term of this Lease,
the Basic Rent shall be increased by an amount equal to three percent (3%) of
the Basic Rent applicable during the immediately preceding year. For example,
the Basic Rent for the period of January 1, 2006 through December 31, 2006 shall
be $95,275.00 per month ($92,500.00 x 1.03), and the Basic Rent for the period
of January 1, 2007 through December 31, 2007 shall be $98,133.25 ($95,275.00 x
1.03).

      SECTION 2.4 ADDITIONAL RENT. All sums of money (other than Basic Rent)
that Tenant is required to pay to Landlord or any third party under this Lease
is referred to herein as "Additional Rent", including without limitation any
imposition, insurance premium, utility charge, maintenance repair or replacement
expense which Tenant is obligated hereunder to pay. In the event Tenant fails to
pay any Additional Rent when due, Landlord may, but shall not be obligated to
pay the same after first providing Tenant with ten (10) days written notice
specifying the payment to be made, and in that event Tenant shall immediately
reimburse Landlord therefor, and Tenant hereby agrees to indemnify, defend and
save Landlord harmless from and against any claim, liability, expense, loss or
damage arising from or related to Additional Rent and Tenant's failure to pay
Additional Rent as required hereunder.

      SECTION 2.5 DELINQUENT PAYMENTS. All payments of Basic Rent and Additional
Rent shall be payable without previous demand therefor and without any right of
setoff or deduction whatsoever (except as specifically provided herein), and in
case of nonpayment of any item of Additional Rent by Tenant when the same is
due, Landlord shall have, in addition to all its other rights and remedies, all
of the rights and remedies available to Landlord under the provisions of this
Lease or by law in the case of nonpayment of Basic Rent. The performance and
observance by Tenant of all the terms, covenants, conditions and agreements to
be performed or observed by Tenant hereunder shall be performed and observed by
Tenant at Tenant's sole cost and expense. Any installment of Basic Rent or
Additional Rent or any other charges payable by Tenant under the provisions
hereof which shall not be paid when due shall bear interest at an annual rate
equal to twelve percent (12%) from the date when the same is due hereunder until
the same shall be paid, but in no event in excess of the maximum lawful rate
permitted to be charged by Landlord against Tenant. Said rate of interest is
sometimes hereinafter referred to as the "Maximum Rate of Interest."

                                        4

<PAGE>

      In addition, any installment of Basic Rent or Additional Rent or any other
charges payable by Tenant under the provisions hereof which shall not be paid
when due and which remain unpaid ten days thereafter shall be subject to a late
payment fee of three percent (3%) of the unpaid amount, provided that such late
fee shall not apply to the first instance of such late payment in any twelve
(12) month period.

      SECTION 2.6 SECURITY DEPOSIT - LETTER OF CREDIT.

      (a) Tenant shall deliver to Landlord the Letter of Credit described below,
at Tenant's sole cost and expense, as security for Tenant's performance of all
of Tenant's covenants and obligations under this Lease; provided, however, that
neither the Letter of Credit nor any Letter of Credit Proceeds (as defined
below) shall be deemed an advance rent deposit or an advance payment of any
other kind, or a measure of Landlord's damages upon Tenant's default. Landlord
shall not be required to segregate the Letter of Credit Proceeds from its other
funds and no interest shall accrue or be payable to Tenant with respect thereto.
Landlord may (but shall not be required to) draw upon the Letter of Credit and
use the proceeds therefrom (the "Letter of Credit Proceeds") or any portion
thereof to cure any Event of Default under this Lease or to compensate Landlord
for any damage Landlord incurs as a result of Tenant's failure to perform any of
its obligations hereunder, it being understood that any use of the Letter of
Credit Proceeds shall not constitute a bar or defense to any of Landlord's
remedies set forth in this Lease, including without limitation, the right to
terminate this Lease and recover damages. Landlord shall only be entitled to
draw upon the Letter of Credit upon the occurrence of an Event of Default under
this Lease or any other document executed in connection with this Lease. In the
event Landlord draws upon the Letter of Credit and elects not to terminate the
Lease, but to use the Letter of Credit Proceeds to cure such Event of Default,
and upon written notice from Landlord to Tenant specifying the amount of the
Letter of Credit Proceeds so utilized by Landlord and the particular purpose for
which such amount was applied, Tenant shall immediately deliver to Landlord an
amendment Letter of Credit or a replacement Letter of Credit in an amount equal
to one hundred percent (100%) of the amount specified in subsection (b) below.
Tenant's failure to deliver such replacement Letter of Credit to Landlord within
five (5) business days of Landlord's notice shall constitute an Event of Default
hereunder. If Tenant breaches any of its obligations set forth in this Section,
such breach shall constitute an Event of Default hereunder without the
requirement of any notice or cure period.

      (b) As used herein, Letter of Credit shall mean an unconditional,
irrevocable sight draft letter of credit in the form attached hereto as EXHIBIT
F or another form approved by Landlord (the "Letter of Credit") issued by
Silicon Valley Bank or a major national bank reasonably satisfactory to Landlord
(the "Bank"), naming Landlord as beneficiary, in an amount equal to Six Hundred
Thousand and No/100 Dollars ($600,000.00). The Letter of Credit shall provide:
(i) that Landlord may make partial and multiple draws thereunder, up to the face
amount thereof, (ii) that Landlord may draw upon the Letter of Credit up to the
full amount thereof, as determined by Landlord, and the Bank will pay to
Landlord the amount of such draw upon receipt by the Bank of a sight draft
signed by Landlord certifying that an Event of Default has occurred; and (iii)
that, in the event of Landlord's assignment or other transfer of its interest in
this Lease, the Letter of Credit shall be freely transferable by Landlord,
without charge and without recourse to Landlord, to the assignee or transferee
of such interest in accordance with

                                        5

<PAGE>

Bank's customary procedures. Tenant shall pay all fees and charges required in
connection with any transfer of the Letter of Credit. Landlord must transfer the
Letter of Credit to any transferee of Landlord's fee interest in the Premises.
Notwithstanding the provisions of the Letter of Credit, Landlord will not make
any draw(s) upon the Letter of Credit in an amount in excess of the sum that
Landlord reasonably deems necessary to cure the Event of Default and/or to
compensate Landlord for any damages Landlord incurs as a result of Tenant's
failure to perform any of its obligations under this Lease, except that Landlord
may draw the entire amount of the Letter of Credit in the event of termination
of this Lease by reason of an Event of Default.

      (c) The Letter of Credit shall be maintained for the Term of this Lease;
provided, however, that the amount of the Letter of Credit shall be reduced for
any extended or renewal period of the Term in an amount equal to (i) $125,000 if
no Event of Default shall have occurred more than once in any calendar year or
three times in the aggregate during the Initial Term or (ii) $300,000 if
subsection (i) does not apply. Tenant shall provide an amendment Letter of
Credit or replacement Letter of Credit for such reduced amount prior to the
expiration of the Initial Term.

                                  ARTICLE III.
                                 USE OF PREMISES

      SECTION 3.1 PERMITTED USE. The Premises including all buildings or other
improvements hereafter erected upon the same shall be used for offices,
warehouse, research and development, and light manufacturing or any other use
permitted under applicable laws and any conditions, covenants or restrictions
recorded against the Premises (the "Permitted Use"), and no other use. Tenant
shall not use or occupy the same, or knowingly permit them to be used or
occupied, contrary to any law, statute, rule, order, ordinance, requirement or
regulation applicable thereto, or in any manner which would violate any
certificate of occupancy affecting the same, or which would make void or
voidable any insurance then in force with respect thereto or which would make it
impossible to obtain fire or other insurance thereon required to be furnished
hereunder by Tenant, or which would cause structural injury to the improvements,
or which would constitute a public or private nuisance or waste or would violate
any Hazardous Materials Laws (as defined in Section 8.3), and Tenant agrees that
it will promptly, upon discovery of any such use, take all necessary steps to
compel the discontinuance of such use.

      SECTION 3.2 PRESERVATION OF PREMISES. Tenant shall not use, suffer, or
permit the Premises, or any portion thereof, to be used by Tenant, any of its
employees or agents, any third party or the public in such manner as might
reasonably tend to impair Landlord's title to the Premises, or any portion
thereof, or in such manner as might reasonably make possible a claim or claims
of adverse usage or adverse possession by the public, as such, or third persons,
or of implied dedication of the Premises, or any portion thereof. Nothing in
this Lease contained and no action or inaction by Landlord shall be deemed or
construed to mean that Landlord has granted to Tenant any right, power or
permission to do any act or make any agreement that may create, or give rise to
or be the foundation for any such right, title, interest, lien, charge or other
encumbrance upon the estate of Landlord in the Premises.

                                        6

<PAGE>

      SECTION 3.3 ACCEPTANCE OF PREMISES. Tenant accepts the Premises in its "as
is" condition as of the Commencement Date except for (i) Landlord's Work
(defined below) and (ii) Landlord's obligations expressly contained elsewhere in
this Lease. On or before January 1, 2005, subject to delays due to force majeure
and other causes beyond Landlord's control and delays caused by Tenant,
Landlord, at Landlord's expense shall substantially complete the following work
("Landlord's Work"): (a) put the Premises in good order, condition and repair,
with the core building systems (meaning the roof, structure, HVAC, plumbing and
basic electrical systems for the Building) in good working order (and Landlord
will warrant the core building systems shall remain in good working order for a
period of three (3) months after the Commencement Date so long as Tenant
maintains such systems to the extent required by this Lease), (b) clean the
static control floor and carpet in the Premises, (c) patch holes in the wall at
the loading dock with plywood and paint such plywood, (d) patch conveyor-system
openings in the warehouse walls with drywall and paint such drywall, (e) remove
rooftop antennas that are no longer in use, (f) supply Tenant with sufficient
matching ceiling tiles for Tenant to replace the ceiling tiles that are damaged
or missing as of the date of this Lease, (g) supply Tenant with sufficient lamps
and bulbs for Tenant to replace such lamps and bulbs that are burned out as of
the date of this Lease, and (h) repair and/or replace all existing
moisture-damaged or loose static control floor tiles (and any other such tiles
that need to be replaced) in the Building, which are estimated to number
approximately 250-350 tiles. The core building systems referenced in subsection
(a) above does not include any improvements, fixtures, equipment and personal
property in the Building installed or abandoned by the prior tenant, including
without limitation the Personalty referenced in Section 19.34, all of which is
delivered in its "as is" condition, without any representation or warranty of
any kind regarding its condition, suitability or usefulness for any purpose. For
purposes of this Section 3.3, Landlord's Work shall be deemed "substantially
complete" at such time as Tenant can use the Premises for their intended
purposes without material interference attributable to the lack of full
completion of Landlord's Work. In addition to Landlord's Work, Landlord agrees
to install a "french drain" system at the north and east exterior sides of the
Building within a reasonable time after the Commencement Date but not later than
one hundred twenty (120) days after the Commencement Date. In the event that
Landlord has not substantially completed Landlord's Work by January 1, 2005
(excluding the aforementioned french drain), subject to delays due to force
majeure or other causes beyond Landlord's control or delays caused by Tenant,
the Gross Rent Period, the commencement date for Basic Rent under Section 2.2,
and the Term shall each be extended by the number of days from January 1, 2005,
until substantial completion of Landlord's Work.

      Landlord shall have no obligation to alter, remove, improve, repair,
decorate, or paint the interior of the Premises or any part thereof except as
expressly provided in this Lease. Tenant acknowledges that except as expressly
provided in this Lease, neither Landlord nor any agent of Landlord has made any
representation or warranty with respect to the Premises or the Building or with
respect to the suitability or fitness of either for the conduct of Tenant's
business or for any other purpose. Tenant shall comply with any and all
covenants, conditions, restrictions, and encumbrances affecting the Premises and
the Building that are provided or disclosed to Tenant before the date of this
Lease.

      SECTION 3.4 STATIC CONTROL FLOOR TILES. Once each quarter during the
Initial Term, Landlord shall inspect the static control floor tiles in the
Building (the "Tiles") and repair or

                                        7

<PAGE>

replace any moisture-damaged or loose Tiles that are readily accessible and
located in areas other than Essential Manufacturing Areas (defined below) so as
to maintain the static control characteristics of the Tiles consistent with the
manufacturer's specifications (the "Performance Standard"). With respect to
Tiles located in Essential Manufacturing Areas, Landlord shall promptly repair
or replace at any time during the Initial Term upon Tenant's request any
readily-accessible Tiles that become moisture-damaged or loose and that fail to
meet the Performance Standard. Tenant shall be responsible for moving any
equipment or property as necessary to allow Landlord to make the repairs or
replacements to the Tiles pursuant to this Section 3.4. After the expiration of
the Initial Term, Tenant shall be solely responsible for all Tiles (including
their compliance with the Performance Standard if such standard is necessary for
Tenant's operations), and Landlord shall have no obligation or liability with
respect thereto. For purposes of this Section 3.4, the "Essential Manufacturing
Areas" shall refer to Tiles in those areas of the Building that materially
impair Tenant's manufacturing process if they do not meet the Performance
Standard.

      During the Initial Term, Landlord shall use its best efforts to ensure
that the Tiles in the Essential Manufacturing Areas meet the Performance
Standard. Tenant will immediately notify Landlord if it becomes aware or
reasonably believes that such Tiles are not meeting the Performance Standard,
and will provide Landlord with any relevant information received by Tenant
regarding such nonperformance. Landlord will promptly investigate and assess the
performance of such Tiles and use its best efforts to cause the Tiles to meet
the Performance Standard. Tenant shall at all times cooperate with Landlord in
good faith to assess, mitigate and seek to jointly resolve any failure of such
Tiles to meet the Performance Standard, including modifying or relocating the
manufacturing process to the extent such changes can reasonably be made without
materially adversely affecting Tenant's manufacturing operations.
Notwithstanding any other provision herein, Tenant, at Tenant's sole cost, shall
perform normal, routine maintenance of the floor tiles as recommended by the
manufacturer, Flexco.

      In order to give Tenant the ability to take immediate action with respect
to any Tiles in Essential Manufacturing Areas that are not meeting the
Performance Standard, Tenant may at any time during the Initial Term (and
without prior notice to Landlord) repair or replace any Tiles in Essential
Manufacturing Areas that are not meeting the Performance Standard, which action
may be taken either independently or jointly with Landlord. Tenant shall notify
Landlord as soon as reasonably possible that it has taken or intends to take
such action. Landlord agrees to reimburse Tenant for all of its reasonable
out-of-pocket costs incurred in making such repairs or replacements of the
Tiles, up to an amount of not more than $50,000 in the aggregate during the
Initial Term (unless Landlord otherwise agrees in advance) within thirty (30)
days of written request by Tenant. If Landlord fails to so reimburse Tenant
within such 30-day period, Tenant may offset any such sums due against the next
installment of Basic Rent due under this Lease.

      During the Initial Term, if (i) Tenant has exhausted the self-help remedy
set forth in the preceding paragraph (and reasonably concluded that any further
efforts by it thereunder would be futile), (ii) the Tiles in Essential
Manufacturing Areas that were subject to such self-help continue to fail to meet
the Performance Standard, (iii) such failure causes Tenant to be unable to
manufacture its product in a material portion of the Essential Manufacturing
Areas due to the static control floor requirements of Tenant's customers, (iv)
such failure cannot reasonably be

                                        8

<PAGE>

remedied by the relocation or reconfiguration of Tenant's manufacturing lines or
process in the Premises, and (v) such cessation of manufacturing continues for
five (5) consecutive business days, then Tenant shall have the right at any time
thereafter (but prior to the time that any one of the foregoing are no longer
true) to give Landlord a notice of termination ("Termination Notice") whereupon
(1) this Lease shall terminate on the date specified in the Termination Notice
(which effective termination date shall be no sooner than ninety (90) days after
the Termination Notice) and (2) one-third of the Basic Rent shall be abated for
the period from the Termination Notice until the earlier of the date of lease
termination or the date Landlord causes such nonperforming Tiles that led to the
Termination Notice to meet the Performance Standard; provided, however, that if
Landlord causes such nonperforming Tiles that led to the Termination Notice to
meet the Performance Standard at any time prior to Tenant's execution of a lease
for space at another property, the Termination Notice given hereunder shall be
null and void, the foregoing abatement of Basic Rent shall cease, and this Lease
shall continue in full force and effect for the remaining stated Term. The
foregoing right of termination shall only apply during the Initial Term.

      The parties agree that Tenant's self-help and termination rights set forth
above in this Section 3.4 are Tenant's sole and exclusive rights and remedies
with respect to the Tiles. Tenant hereby unconditionally waives, releases,
covenants not to sue, acquits and forever discharges Landlord and its officers,
directors, partners, trustees, employees, agents, attorneys, successors and
assigns for, from and against any and all claims, actions, causes of action,
demands, rights, damages, costs, expenses or compensation whatsoever, including
all statutory and common law rights of indemnification and contribution, direct
or indirect, known or unknown, foreseeable or unforeseeable, present and future,
that the Tenant may now have or may subsequently accrue to the Tenant whatsoever
arising out of or related, directly or indirectly, to the performance or
nonperformance of the Tiles in the Building or Landlord's efforts to maintain
the static control performance of the Tiles, including without limitation, all
claims of damage or injury to persons or property. Without limiting the
generality of the foregoing release, Tenant waives all claims and releases
Landlord from all liability for any consequential damages that Tenant may incur
due to the nonperformance of the Tiles, including without limitation any claims
based on product liability. Additionally, Tenant shall indemnify and defend
Landlord and its officers, directors, partners, trustees, employees, agents,
attorneys, successors and assigns from and against any and all claims,
liabilities, damages, costs, penalties, forfeitures, losses or expenses
(including attorneys' fees) for death or injury to any person or damage to any
property whatsoever arising from or related to, directly or indirectly, from the
performance or nonperformance of the Tiles in the Building or Landlord's efforts
to maintain the static control performance of the Tiles, including without
limitation any claims based on product liability. Tenant's covenants and
obligations under the foregoing provisions shall survive the expiration or
termination of this Lease.

      SECTION 3.5 REFURBISHMENT ALLOWANCE. On or after May 1, 2008, Landlord
shall provide to Tenant an allowance of not more than One Hundred Twenty Five
Thousand Dollars ($125,000) (the "Landlord's Allowance") to be applied solely
toward the costs of refurbishing the Premises which may include repairing or
replacing the wall covering and floor covering in the Premises (the
"Refurbishment Work"). Provided no Event of Default exists and subject to the
other conditions herein, Landlord shall disburse the Landlord's Allowance to
Tenant within thirty (30) days after Tenant has completed the Refurbishment Work
and delivered to Landlord

                                        9

<PAGE>

all of the following: (a) all invoices and proofs of payment for the
Refurbishment Work, (b) unconditional lien waivers and releases, in a form
acceptable to Landlord, executed by all contractors, subcontractors, material
and other potential lien claimants in connection with the Refurbishment Work (or
the period within which such potential lien claimants may file a lien shall have
expired without the filing of any lien), and (c) a copy of all building permits
and a final Certificate of Occupancy for the Premises, if applicable. The
Landlord's Allowance must be disbursed by May 1, 2010 or shall be deemed
forfeited with no further obligation by Landlord with respect thereto.

                                   ARTICLE IV.
                       COMMON AREA CHARGES AND IMPOSITIONS

      SECTION 4.1 DEFINITIONS.

      "COMMON AREA" shall mean the entire area designated from time to time by
Landlord for the common use or benefit of the tenants of the Park and other
persons entitled to use the same, including, without limitation, parking lots
(permanent and temporary), landscaped and vacant areas, passages for tracks and
automobiles, area-ways, roads, walks, curbs, corridors, stairs and ramps,
together with common utility facilities, storm water detention facilities,
whether located within or outside of the Park, and including the exterior of
buildings.

      "COMMON AREA COSTS" shall mean all costs and expenses of operating,
maintaining, managing, repairing and replacing all or any part of the Park,
including the Building or the Common Area, as applicable, and shall include, but
not be limited to, all sums expended for operating, maintaining, repairing,
lighting, cleaning, sealing, striping, inspecting, painting (including the
exterior of buildings of the Park, and removing snow, ice, debris and surface
water; all insurance costs incurred by Landlord in connection with the Park,
including liability insurance for personal injury, death, and property damage
and contractual liability, worker's compensation insurance, insurance against
all risks of physical loss (including earthquake, terrorism and flood if and
only if required by Landlord's Mortgagee) or other casualties, rental loss,
workmen's compensation and employer's liability insurance, and including any
"deductible" or self-insured retention cost (up to a maximum of $25,000)
incurred in connection with any covered loss; surcharges levied upon or assessed
against parking spaces or areas; payments to or for public transit or car
pooling facilities or otherwise, as required by governmental authorities having
jurisdiction over the Park; costs incurred by Landlord in connection with
complying with applicable federal, state or local environmental or other legal
requirements; the cost of repairing, cleaning and painting the exterior of all
buildings in the Park, including the roof membrane; costs of providing security
guards, if approved in advance by Tenant; the acquisition costs (rental fees
and/or purchase price or, in lieu of purchase price, the annual depreciation
applicable thereto) of machinery and equipment used in connection with the
maintenance and operation of the Park; the costs of any capital improvements or
capital replacements in the Park, provided, however, if under generally accepted
accounting principles such costs should be capitalized, the amount included
within any period shall equal the amount amortized over the useful life of the
improvements; all costs and expenses of service and maintenance contracts,
including, but not limited to, fire sprinkler systems, electronic intrusion and
fire control and telephone alert system; machinery and equipment depreciation;
all costs and expenses for inspecting, repairing and maintaining machinery and
equipment used in the

                                       10

<PAGE>

operation of the Park; all costs and expenses of inspecting, maintaining,
repairing and replacing drainage, landscaping, wetlands and irrigation systems,
sanitary sewer systems, sprinklers and other fire protection systems, and
electrical, gas and water systems; all reasonable costs and expenses paid or
incurred by Landlord for professional and other services (including consultants,
attorneys, appraisers and experts) in connection with contesting or attempting
to lower Taxes or to resist increased Taxes provided that Landlord had a
reasonable good faith basis to pursue such contest or reduction and, if the
savings from such contest is less than the costs to pursue same, Tenant shall be
responsible for not more than fifty percent (50%) of the excess costs; all costs
and expenses of traffic regulation, directional signs and traffic consultants;
all costs and expenses of planting and replacing flowers, shrubbery and
planters; all costs and expenses of replacement of, and repairing, paving,
curbs, sidewalks, walkways, roadways, loading docks shared by two or more
tenants, parking surfaces, drainage, utilities, lighting facilities, and Park
signage; all costs of supplies and materials used in connection with the
operation and maintenance of the Park; all payroll taxes, unemployment insurance
costs, vacation allowances, and the cost of providing hospitalization and any
other expense imposed on Landlord, pursuant to law or pursuant to any collective
bargaining agreement covering employees below the level of senior property
manager engaged in the management of the Park or the operation, maintenance,
repair or replacement of the Park; and a property management fee of not less
than two and one-half percent (2.5%) of the Basic Rent hereunder nor greater
than the market fees paid to third-party property managers of comparable
property who provide comparable services to the landlord. Notwithstanding the
foregoing, Common Area Costs shall not include: (1) the cost of any capital
improvement or replacement of any capital item unless approved in advance by
Tenant, mandated by laws not in effect on the Commencement Date or that actually
reduce the Common Area Costs (whereupon the amortized costs of same over the
useful life of the improvement or replacement shall be included in Common Area
Costs); (2) repairs, restoration or other work occasioned by fire, windstorm or
other insured casualty except for any applicable deductible or self-insured
retention which shall not exceed $25,000; (3) expenses incurred in leasing or
procuring tenants, leasing commissions, advertising expenses or expenses for
renovating space for new or existing tenants; (4) legal expenses incident to
enforcement by Landlord of the terms of any lease, or in connection with lease
negotiations with prospective tenants, tort claims or disputes with Building
tenants (other than Tenant); (5) interest or principal payments on, or any other
costs related to, any Mortgage or other indebtedness of Landlord or costs of
refinancing; (6) fines, penalties, and interest caused by Landlord or another
tenant in the Park; (7) costs relating solely to any building other than the
Premises; (8) the cost of decorating, improving for tenant occupancy, painting
or redecorating portions of the Park to be leased to tenants; (9) advertising or
marketing expenses relating to vacant space; (10) real estate brokers' or other
leasing commissions; (11) lease concessions, rental abatements and construction
allowances granted to specific tenants; (12) costs incurred in connection with
the sale, financing or refinancing of the Building; (13) fines, interest and
penalties incurred due to the late payment of Property Taxes or expenses; (14)
organizational expenses associated with the creation and operation of the entity
which constitutes Landlord; (15) any penalties or damages that Landlord pays to
Tenant under this Lease or to other tenants in the Building under their
respective leases; (16) fines or penalties incurred as a result of violation by
Landlord of any applicable law; (17) charitable, civic or political
contributions; (18) costs of purchasing or leasing sculptures, paintings or
other works or decorative objects; (19) costs resulting from the negligence or
willful misconduct of Landlord or it agents, employees or contractors; (20)
costs of any work or service performed for or facilities furnished to any tenant
to the extent Tenant would pay for the same level of such item

                                       11

<PAGE>

on an extra-cost basis under this Lease; (21) repairs, restoration, replacements
or other work occasioned by the exercise of eminent domain or by casualty; or
(22) any overhead or profit increments to any subsidiary or affiliate of
Landlord for services on or to the Park, to the extent that the costs of such
services materially exceed competitive costs for services obtained from an
unrelated party of comparable scope and quality rendered by persons or entities
of similar skill, competence and experience; (23) contribution to reserves, (24)
costs attributable solely to another building in the Park, or (25) any cost for
which Landlord is reimbursed by a third party. In the calculation of any
expenses hereunder, it is understood that no expense shall be charged more than
once. Landlord shall use its best efforts to effect an equitable proration of
bills for services rendered to the Park and to any other property owned by
Landlord. Landlord agrees to keep books and records showing the Common Area
Costs in accordance with a system of accounts and accounting practices
consistently maintained on a year-to-year basis and Tenant may inspect such
records at any time on reasonable notice at the offices of Landlord where such
records are kept.

      "LEASE YEAR" shall mean, in the case of the first Lease Year, that period
from the Commencement Date to the first succeeding December 31; thereafter,
"Lease Year" shall mean each successive twelve (12) calendar month period
following the expiration of the first Lease Year, except that in the event of
the termination of this Lease on any day other than on December 31, then the
last Lease Year shall be the period from the end of the preceding Lease Year to
such date of termination.

      "TAXES" shall mean all taxes and assessments against the land, buildings
or improvements comprising the Park that are levied or assessed (that become due
during the term of this Lease) by any lawful authority during each calendar
year, including without limitation all personal property taxes of Landlord
relating to Landlord's personal properly located on the Park and used or useful
in connection with the operation and maintenance thereof, and all other
governmental charges, general and special, ordinary and extraordinary, foreseen
as well as unforeseen, of any kind and nature whatsoever, or other tax, however
described, which is levied or assessed by the United States of America or the
state in which the Park is located or any city, municipality or political
subdivision thereof, against Landlord or all or any part of the Park excluding
however any net income tax, estate tax, transfer tax or inheritance tax of
Landlord. Taxes shall not include any fine, penalty, interest, or cost
attributable to delinquent payment thereof. If Landlord does not elect to
protest valuation of the property, Tenant may initiate proceedings to contest
the valuation at Tenant's expense.

      "TENANT'S PRO RATA SHARE" shall mean the fraction the numerator of which
is the rentable floor area of the Premises and the denominator of which is the
number of square feet of rentable floor area of all buildings in the Park at the
time, or such portion of the Park as is reasonably determined by Landlord to be
applicable with respect to any charges which are not allocable to the entire
Park; provided, however, the total rentable floor area of any tenant within the
Park that does not benefit from nor participate in the reimbursement of any or
all of such costs and/or expenses included within the term Common Area Costs
shall not be included within the total square feet of rentable floor area within
the Park for purposes of calculating Tenant's Pro Rata Share of the specific
costs for which such tenant does not benefit from nor participate in the
reimbursement thereof. As of the Commencement Date, the total rentable floor
area of the Premises is approximately 135,286 square feet and the total rentable
floor area of all buildings in the Park is approximately 206,261 square feet.

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<PAGE>

      SECTION 4.2 PAYMENT. Tenant shall pay Landlord Tenant's Pro Rata Share of
Taxes and Common Area Costs, as Additional Rent, in monthly installments on or
before the first day of each calendar month, in advance, in an amount estimated
by Landlord from time to time. Landlord shall, on or about March 31 of each
calendar year, submit to Tenant a statement of estimated Common Area Costs and
Taxes for such Lease Year and Tenant's proportionate share thereof, whereupon
Tenant shall pay Landlord any deficit over Tenant's first quarter payments
within thirty (30) days of receipt of Landlord's statement, and any overpayment
by Tenant shall be credited to the next installments of Tenant's proportionate
share of Common Area Costs or Taxes, as the case may be.

      Within ninety (90) days after the end of each Lease Year, Landlord shall
furnish Tenant with a statement (the "Annual Statement") detailing the actual
Common Area Costs and the actual amount of Tenant's proportionate share of such
Common Area Costs and Taxes for such period. In the event the total of Tenant's
monthly installments for any Lease Year does not equal Tenant's proportionate
share as shown on the Annual Statement, then Tenant shall promptly pay Landlord
any deficiency, but if such Annual Statement indicates an overpayment by Tenant,
then Tenant shall be entitled to offset such excess against any sums next
becoming due under this Lease or to the extent such excess exceeds $92,500 or if
the Lease has terminated, such sum shall be refunded to Tenant. Landlord may
from time to time revise such estimate by notice to Tenant, whereupon, starting
with the next payment due at least ten (10) days after the date of the revised
estimate, subsequent payments by Tenant for the remainder of the Lease Year
shall be based upon such revised estimate.

      SECTION 4.3 COMMON AREA MAINTENANCE. Landlord shall operate and maintain
the Common Area or shall cause the same to be operated and maintained in a
manner deemed by Landlord reasonable or appropriate for the Park provided that
the Park must be maintained in as good a condition as it is in at the date of
this Lease and in compliance with all applicable laws and recorded restrictions.
Subject to reasonable, nondiscriminatory rules and regulations to be promulgated
by Landlord, and subject to the rights of Tenants, licensees or concessionaires
already or to be granted therein, the Common Area is hereby made available to
Tenant and its employees, agents, customers and invitees for their reasonable
nonexclusive use in common with others, including Tenants and their employees,
agents, customers, invitees, and Landlord for the purposes for which
constructed. Landlord shall have the right: to change the location and
arrangement of parking areas and other Common Area; to construct surface or
elevated parking areas and facilities; to establish and change the level of
parking surfaces; to close all or any portion of the Common Area to such extent
as may, in the opinion of Landlord's counsel, be necessary to prevent a
dedication thereof or the accrual of any rights to any person or to the public
therein or to make repairs or alterations; to close temporarily any or all
portions of the Common Area; and to do and perform such other acts in and to
said area and improvements as, in the exercise of good business judgment,
Landlord shall determine to be advisable with a view to the improvement of the
convenience and use thereof by Tenants and their agents, contractors, servants,
employees, licensees, customers and business invitees, In the event Landlord
exercises any right set forth in this Section, Landlord shall use reasonable
efforts to minimize any material adverse interference with Tenant's operation of
the Premises for the Permitted Use and shall use its best efforts to ensure that
Tenant at all reasonable times has access to the Premises and the

                                       13

<PAGE>

parking designated for Tenant's use hereunder. Tenant shall not solicit business
or display merchandise within the Common Area, or distribute handbills therein,
or take any action which it has reason to know would unreasonably interfere with
the rights of other persons to use the Common Area without the prior written
consent of the Landlord. Landlord agrees that it shall not grant rights for any
tenant, occupant or other party to occupy or use any portion of the Common Area
that is also part of the Building, including the roof, without Tenant's prior
consent, excluding the existing rights granted to AT&T Wireless referenced in
Section 19.33.

      SECTION 4.4 PARKING. Tenant shall have the nonexclusive right to use at no
additional charge parking stalls located within the Common Area of the Park
(except such parking stalls located adjacent to other buildings in the Park that
are reserved for the exclusive use of other tenants or their invitees) in common
with all other occupants of the Park and their invitees, subject to the terms,
rules and regulations of this Lease. Except as mandated by any governmental
authority, Landlord agrees that it shall not (i) materially reduce the total
number of unreserved parking spaces available in the Park, or (ii) provide
reserved parking in the Common Area to any other tenant in the Park unless
Landlord also provides a comparable amount of reserved parking (based on square
feet of the respective premises) to Tenant adjacent to the Building.

                                   ARTICLE V.
                                    INSURANCE

      SECTION 5.1 LANDLORD'S PROPERTY INSURANCE AND WAIVER OF SUBROGATION.
Landlord shall keep the improvements in the Park (including all improvements in
the Premises on the Commencement Date and all equipment, fixtures and personal
property in the Premises that are owned by Landlord) insured in an amount
equivalent to the insurable replacement value thereof on an agreed amount basis
without any co-insurance penalty (excluding foundation, grading and excavation
costs) with deductibles reasonably acceptable to Landlord against:

      (a)   Loss or damage by fire and other risks covered by the ISO "causes of
            loss - special" form of policy or such other comparable policy if
            that form is no longer generally available; and

      (b)   such other risk or risks of a similar or dissimilar nature as are
            now, or may in the future be, required by Landlord's lender or
            customarily covered with respect to buildings and improvements
            similar in construction, general location, use, occupancy and design
            to the Park, including, but without limiting the generality of the
            foregoing, windstorm, hail, explosion, vandalism, malicious
            mischief, civil commotion and such other coverage as may be deemed
            necessary or desirable by Landlord, provided such additional
            coverage is obtainable and provided such additional coverage is such
            as is customarily carried with respect to buildings and improvements
            similar in construction, general location, use, occupancy and design
            to the Park.

Notwithstanding anything to the contrary contained in this Lease, Landlord
hereby waives, releases and discharges Tenant, its agents and employees from all
claims whatsoever arising out of loss,

                                       14

<PAGE>

claim, expense or damage to or destruction of property covered by property
insurance maintained or required to be maintained by Landlord under this Section
5.1 notwithstanding that such loss, claim, expense or damage may have been
caused by Tenant, its agents or employees, and Landlord agrees to look to the
insurance coverage only in the event of such loss. Landlord agrees to have its
insurer waive any rights of subrogation that such insurer may have against
Tenant by reason of the claims covered by the foregoing.

      SECTION 5.2 LIABILITY INSURANCE COVERAGE. During the term of this Lease,
Tenant, at its sole cost and expense, shall obtain and continuously maintain in
full force and effect commercial general liability insurance against any loss,
liability or damage on, about or relating to the Premises, or any portion
thereof, with limits of not less than Five Million Dollars ($5,000,000.00)
combined single limit, per occurrence and aggregate, coverage on an occurrence
basis, and contain a deductible or self-insured retention of not more than One
Million Dollars ($1,000,000). Any such insurance obtained and maintained by
Tenant shall name Landlord and its managing agent as additional insureds therein
and shall be obtained and maintained from and with a reputable and financially
sound insurance company authorized to issue such insurance in the state in which
the Premises are located. Such insurance shall specifically insure (by
contractual liability endorsement) Tenant's indemnity obligations under this
Lease to the extent typically covered by the customary endorsement.

      SECTION 5.3 INSURANCE PROVISIONS. Each policy required under this Article
VI shall be written by companies having a financial rating of at least "VIII"
and a general policyholder's rating of "A-", as rated in the most current Best's
Key Rating Guide Property-Casualty, and have attached thereto (a) an endorsement
that such policy shall not be canceled or materially changed without at least 30
days' prior written notice to Landlord, and (b) an endorsement to the effect
that the insurance as to the interest of Landlord shall not be invalidated by
any act or neglect of Landlord or Tenant. All policies of insurance shall be
written in companies licensed in the state in which the Premises are located.
Certificates of insurance in the form customarily used by the insurer and
evidencing the insurance coverages required hereunder, shall be delivered to
Landlord prior to commencement of the Term and prior to expiration of each such
policy. If the certificates are not satisfactory to Landlord, Tenant shall
deliver to Landlord within ten (10) days after Landlord's request such
additional evidence of the maintenance of insurance required hereunder as may be
requested by Landlord (including without limitation copies of the policies and
all endorsements if requested).

      SECTION 5.4 TENANT'S PROPERTY INSURANCE AND WAIVER OF SUBROGATION. Tenant
shall keep all of its machinery, equipment, furniture, fixtures, personal
property (including also property under the care, custody, or control of Tenant)
and business interests which may be located in, upon or about the Premises
insured in an amount equivalent to not less than eighty (80) percent of the
insurable replacement value thereof against:

      (a)   loss or damage by fire and other risks covered by the ISO "causes of
            loss - special" form of policy or such other comparable policy if
            that form is no longer generally available; and

                                       15

<PAGE>

      (b)   such other risk or risks of a similar or dissimilar nature as are
            now, or may in the future be, customarily covered with respect to a
            tenant's machinery, equipment, furniture, fixtures, personal
            property and business located in a building similar in connection,
            general location, use, occupancy and design to the Park, including,
            but without limiting the generality of the foregoing, sprinkler
            leakage, windstorms, hail, explosions, vandalism, theft, malicious
            mischief, civil commotion and/or such other coverage as Tenant may
            deem appropriate or necessary.

Notwithstanding anything to the contrary contained in this Lease, Tenant hereby
waives, releases and discharges Landlord, its agents and employees from all
claims whatsoever arising out of loss, claim, expense or damage to or
destruction of property covered by property insurance maintained or required to
be maintained by Tenant under this Section 5.4 notwithstanding that such loss,
claim, expense or damage may have been caused by Landlord, its agents or
employees, and Tenant agrees to look to the insurance coverage only in the event
of such loss. Tenant agrees to have its insurer waive any rights of subrogation
that such insurer may have against Landlord by reason of the claims covered by
the foregoing.

      SECTION 5.5 OTHER INSURANCE. Tenant shall maintain insurance coverage
(including loss of use and business interruption coverage) upon Tenant's
business and upon all personal property of Tenant or the personal property of
others kept, stored or maintained on the Premises against loss or damage by
fire, windstorm or other casualties or causes for such amount as Tenant may
desire, and Tenant agrees that such policies shall contain a waiver of
subrogation clause as to Landlord.

      SECTION 5.6 BLANKET INSURANCE COVERAGE. Nothing in this Article shall
prevent Tenant from taking out insurance of the kind and in the amount provided
for under the preceding paragraphs of this Article under a blanket insurance
policy or policies (certificates thereof reasonably satisfactory to Landlord
shall be delivered to Landlord) which may cover other properties owned or
operated by Tenant as well as the Premises; provided, however, that any such
policy of blanket insurance of the kind provided for shall not contain any
clause which would result in the insured thereunder being required to carry any
insurance with respect to the property covered thereby in an amount not less
than any specific percentage of the Full Replacement Cost of such property in
order to prevent the insured therein named from becoming a co-insurer of any
loss with the insurer under such policy; and further provided, however, that
such policies of blanket insurance shall, as respects the Premises, contain the
various provisions required of such an insurance policy by the foregoing
provisions of this Article V.

                                   ARTICLE VI.
                                    UTILITIES

      SECTION 6.1 PAYMENT OF UTILITIES. Landlord represents and warrants that to
the best of its actual knowledge all utilities are separately metered to the
Premises. During the term of this Lease, Tenant will pay, when due, all charges
of every nature, kind or description for utilities furnished to the Premises or
chargeable against the Premises, including all charges for water, sewage, heat,
gas, light, garbage, electricity, telephone, steam, power, or other public or
private

                                       16

<PAGE>

utility services. Prior to the Commencement Date, Tenant shall pay for all
utilities or services at the Premises used by it or its agents, employees or
contractors.

      SECTION 6.2 INTERRUPTION. Landlord shall not be liable in damages or
otherwise, nor shall there be an abatement of rents, if the furnishing by any
supplier of any utility service or other service to the Premises shall be
interrupted or impaired by fire, accident, riot, strike, act of God, the making
of necessary repairs or improvements, or by any other causes beyond Landlord's
control; provided, however, if such interruption shall have been caused by
Landlord's negligence and prevents Tenant from engaging in the Permitted Use in
any material portion of the Premises for four (4) consecutive days, then Basic
Rent shall be abated (in whole or in part, as applicable) from and after the
expiration of said four-day period until the earlier to occur of (i) the
restoration of the furnishing of such utility or other service to the Premises,
or (ii) the date on which such interruption no longer prevents Tenant from
engaging in the Permitted Use in the entire Premises. Anything herein to the
contrary notwithstanding, there shall be no such abatement of rent if Landlord's
inability to provide such services is caused by misuse or neglect of Tenant or
Tenant's agents, employees or invitees, or by shortages of fuel or other energy
supplies to be provided by public or private utilities or suppliers or by other
causes beyond the reasonable control of Landlord.

                                  ARTICLE VII.
                                     REPAIRS

      SECTION 7.1 TENANT'S REPAIRS. Subject to Articles XII and XIIIl and
Section 7.2, Tenant, at its sole cost and expense, throughout the term of this
Lease, shall take good care of the Premises (including the interior surface of
the outer walls) and all Tenant's signs, and shall keep the same in good order,
condition and repair, and shall make and perform all maintenance thereof and all
necessary repairs and replacements thereto. Tenant agrees to maintain the
Premises and all Tenant's signs and all parts thereof in a good and sufficient
state of repair as required by the provisions of this Lease, ordinary wear and
tear excepted, including keeping the inside of all glass in doors and windows of
the Premises clean, promptly replacing at its expense any broken door or door
closers and any cracked or broken glass of the Premises with glass of like kind
and quality, and maintaining the Premises and the loading dock contiguous
thereto, if any, at its expense in a clean, orderly and sanitary condition.
Tenant shall also: keep any garbage, trash, rubbish or refuse removed at its
expense on a regular basis and temporarily stored in the Premises or in exterior
dumpsters approved by Landlord, and all in accordance with local codes;
maintain, repair, and replace the mechanical systems (including HVAC) and all
utility lines within five (5) feet of and serving the Premises including those
beneath the slab and keep all mechanical apparatus free of vibration and noise
which may be transmitted beyond the Premises; comply with all laws, ordinances,
rules and regulations of governmental authorities applicable to Tenant's
particular use of the Premises, and all recommendations of the insurance
services office and/or Landlord's insurance carrier now or hereafter in effect
relative to the use and occupancy of the Premises and the transaction of the
business of Tenant in the Premises; and enter into and maintain in place
throughout the term of this Lease, a contract for the repair and maintenance of
the heating, ventilating and air conditioning equipment servicing the Premises
in accordance with the recommendations of manufacturers and suppliers. When used
in this Article VII, "repairs" shall include all necessary replacements,
renewals, alterations, additions and betterments. All

                                       17

<PAGE>

repairs made by Tenant shall be at least equal in quality to the original work
and shall be made by Tenant in accordance with all laws, ordinances and
regulations whether heretofore or hereafter enacted. The necessity for or
adequacy of maintenance and repairs shall be measured by the standards which are
appropriate for improvements of similar construction and class, provided that
Tenant shall in any event make all repairs necessary to avoid any structural
damage ,or other damage or injury to the Building. If, during the last twelve
(12) months of the Initial Term, Tenant replaces a compressor or other major
component of the Building's existing HVAC system (meaning an HVAC component that
costs in excess of $5,000) and the useful life of such component extends beyond
the Term, Landlord shall reimburse Tenant for fifty percent (50%) of the cost of
the component up to an amount not to exceed $100,000 in the aggregate, provided
that no Event of Default shall have occurred and be continuing. Landlord shall
pay Tenant for such reimbursement within thirty (30) days after Tenant's request
therefor and, if Landlord fails to pay such reimbursement within such 30-day
period, Tenant may thereafter offset such sum due against the next installment
of Basic Rent due under this Lease.

      SECTION 7.2 LANDLORD'S REPAIRS. Landlord shall keep or cause to be kept
the Common Area and all structural portions of the Building, including the
foundations, the four outer walls (excluding the interior surface thereof) and
the roof (including the roof membrane) of the Building of which the Premises are
a part and, to the extent Tenant or other Tenants are not obligated to maintain
the same, all utility systems, lines, conduits and appurtenances thereto located
within the Park but outside the exterior walls of the Premises in good repair,
ordinary wear and tear excepted, said costs to be Common Area Costs to the
extent provided by Section 4.1; provided however, if the need for such repair is
attributable to or result from the specific business activity being conducted
within the Premises, or from the acts or omissions of Tenant, its officers,
directors, employees, agents, contractors or invitees, then, in such case,
Tenant agrees to reimburse Landlord for the reasonable costs and expenses
incurred by Landlord with respect to such repair, subject to Section 5.1.
Landlord shall also be responsible for the cost of complying with any laws of
general application and not specifically related to Tenant's particular use
thereof, said costs to be Common Area Costs only with respect to such costs for
compliance with laws adopted after the Commencement Date as provided in Section
4.1. Landlord shall commence repairs it is required to do hereunder as soon as
reasonably practicable after receiving written notice from Tenant of the
necessity of such repairs, but in no event shall Landlord be required to make
any other repairs, subject to the provisions of Articles XII and XIII herein,
and Landlord shall have no liability for any damage or injury arising out of any
condition or occurrence causing a need for such repairs, unless said damage or
injury shall have been caused by the negligence or intentional misconduct of
Landlord or its employees, agents or contractors (including any property manager
retained by Landlord), subject to certain waivers, releases and limitations set
forth in this Lease. In the event Landlord fails to make repairs that Landlord
is required to perform hereunder, then Tenant shall promptly provide to
Landlord, and to any Mortgagee or trust deed holder having a security interest
in the Park, provided that Tenant has received notice of the identity and
address of any such Mortgagee or trust deed holder, one (1) separate thirty-day
notice of such requirement. In the event Landlord or such Mortgagee or trust
deed holder fails to satisfy said requirement on or before expiration of such
30-day period (provided, however, that if the repair is of such a nature that it
cannot be accomplished within such period, then Tenant shall have no rights
under this sentence if Landlord or its Mortgagee commences to make the repair
within such period and thereafter continues with diligence to

                                       18

<PAGE>

complete the repair), subject to force majeure, then (a) Tenant shall perform
said repairs in a good and workmanlike manner and shall keep the Premises and
the Park, or any portion thereof, free from any mechanics' or materialman liens
for work performed or material supplied in connection with the performance of
such repairs, and (b) Landlord shall reimburse Tenant for the reasonable
out-of-pocket costs incurred by Tenant therefor within thirty (30) days after
Landlord's receipt of Tenant's written request for reimbursement, which request
shall be accompanied by reasonable evidence of such costs and conditional lien
waivers. If Landlord fails to reimburse Tenant within such 30-day period, Tenant
may offset such sum together with interest at the Maximum Rate of Interest from
the date of the reimbursement request until paid against any sum due to Landlord
hereunder (up to a maximum each month of 25% of Basic Rent).

      SECTION 7.3 PROHIBITION AGAINST WASTE. Tenant shall not cause or permit
its employees, agents, invitees, licensees or contractors to cause any waste or
damage, disfigurement or injury to the Premises, or any improvements hereafter
erected thereon, or to the fixtures or equipment therein, or permit or suffer
any overloading of the floors or other use of the Improvements that would place
an undue stress on the same or any portion thereof beyond that for which the
same was designed provided that Landlord shall must first notify Tenant of the
loading capacity for which the floor was designed.

      SECTION 7.4 LANDLORD'S RIGHT TO EFFECT REPAIRS. If Tenant should fail to
perform any of its obligations under this Article VII, then Landlord may, if it
so elects, in addition to any other remedies provided herein, effect such
repairs and maintenance. Any sums expended by Landlord in effecting such repairs
and maintenance shall be due and payable, on demand, together with interest
thereon at the Maximum Rate of Interest from the date of each such expenditure
by Landlord to the date of repayment by Tenant.

      SECTION 7.5 MISUSE OR NEGLECT. Except as otherwise provided herein, Tenant
shall be responsible for all repairs to the Building which are made necessary by
any misuse or neglect by: (i) Tenant or any of its officers, agents, employees,
contractors, licensees, or subtenants; or (ii) any visitors, patrons, guests, or
invitees of Tenant or its subtenant while in or upon the Premises.

                                  ARTICLE VIII.
                       COMPLIANCE WITH LAWS AND ORDINANCES

      SECTION 8.1 COMPLIANCE WITH LAWS AND ORDINANCES. Tenant shall, throughout
the Term of this Lease, and at Tenant's sole cost and expense, promptly comply
or cause compliance with or remove or cure any violation caused by Tenant or
attributable to its business activities or any improvements made by or for it
(other than work performed by Landlord under this Lease) of any and all present
and future laws, ordinances, orders, rules, regulations and requirements of all
federal, state, municipal and other governmental bodies having jurisdiction over
the Premises and the appropriate departments, commissions, boards and officers
thereof (including without limitation Hazardous Materials Laws as defined
below), and the orders, rules and regulations of the Board of Fire Underwriters
where the Premises are situated, or any other body now or hereafter constituted
exercising lawful or valid authority over the Premises, or any portion

                                       19

<PAGE>

thereof, or the sidewalks, curbs, roadways, alleys, entrances or railroad track
facilities adjacent or appurtenant thereto, or exercising authority with respect
to the Tenant's particular use or manner of use of the Premises, or such
adjacent or appurtenant facilities, and whether the compliance, curing or
removal of any such violation and the costs and expenses necessitated thereby
shall have been foreseen or unforeseen, ordinary or extraordinary, and whether
or not the same shall be presently within the contemplation of Landlord or
Tenant or shall involve any change of governmental policy, or require structural
or extraordinary repairs, alterations or additions by Tenant and irrespective of
the costs thereof. Nothing in this Lease shall (a) require Tenant to pay for the
cost of correcting any non-compliance existing as of the date of this Lease
unless such compliance is specifically related to Tenant's alterations or
improvements to the Premises or its business activities, or (b) impose any
liability or responsibility on Tenant for any Hazardous Materials in, on or
about the Park on the date of this Lease (and as between Landlord and Tenant,
Landlord shall be responsible for such conditions as provided in Section 8.4)
unless brought thereon by Tenant or attributable to Tenant's activities on or
about the Park.

      SECTION 8.2 COMPLIANCE WITH PERMITTED ENCUMBRANCES. Tenant, at its sole
cost and expense, shall comply with all agreements, contracts, easements,
restrictions, reservations and covenants from time to time affecting the
Building or Park, including without limitation those set forth in the attached
EXHIBIT B. Tenant shall also comply with, observe and perform all provisions and
requirements of all policies of insurance at any time in force with respect to
the Premises and required to be obtained and maintained under the terms of
Article V hereof and shall comply with all development, land use, occupancy and
other applicable permits issued by governmental authorities issued with respect
to the Premises.

      SECTION 8.3 COMPLIANCE WITH HAZARDOUS MATERIALS LAWS. Tenant shall at all
times and in all respects comply with all federal, state and local laws,
statutes, ordinances and regulations pertaining to the protection of human
health or the environment and any applicable orders, judgments, decrees,
permits, licenses, or other authorizations or mandates under such laws,
statutes, ordinances and regulations (each a "Hazardous Materials Law";
collectively, "Hazardous Materials Laws"). Tenant shall not use, generate,
transport, treat, store, dispose of or otherwise handle Hazardous Materials on
or about the Premises or Park without the prior written consent of Landlord, and
then only in strict compliance with all Hazardous Materials Law and the terms of
this Lease. Landlord hereby consents to the use of reasonable quantities of
Hazardous Materials necessary for or reasonably related to the conduct of the
business of Tenant, provided that upon request by Landlord, Tenant shall provide
Landlord with (i) a list of all such Hazardous Materials together with a
description of the nature and quantities to be used, stored or handled, and (ii)
a copy of all of Tenant's permits, policies and procedures for the use, storage
and handling of such Hazardous Materials, and copies of any amendments thereto.
Notwithstanding any other provision of this Lease, all use, storage and handling
of Hazardous Materials by Tenant, its employees, agents, suppliers and invitees
in, on or about the Premises or Park shall be in strict compliance with all
Hazardous Materials Laws and this Lease. The term "Hazardous Materials" shall
mean any hazardous, toxic, radioactive or infectious substance, material or
waste as defined, listed or regulated under any Hazardous Materials Law, and
includes without limitation petroleum oil and its fractions.

                                       20

<PAGE>

      Tenant shall at its own expense procure, maintain in effect and comply
with all conditions of any and all permits, licenses and other governmental and
regulatory approvals required for Tenant's use of the Premises, including,
without limitation, discharge of (appropriately treated) materials or waste into
or through any sanitary sewer system serving the Premises. Except as discharged
into the sanitary sewer in strict accordance and conformity with all applicable
Hazardous Materials Laws, Tenant shall cause any and all Hazardous Materials to
be removed from the Premises and transported solely by duly licensed haulers to
duly licensed facilities for final disposal of such Hazardous Materials and
wastes. Tenant shall in all respects, handle, treat, deal with and manage any
and all Hazardous Materials in, on, under or about the Premises in complete
conformity with all applicable Hazardous Materials Laws and prudent industry
practices regarding the management of such Hazardous Materials. All reporting
obligations to the extent imposed upon Tenant by Hazardous Materials Laws are
solely the responsibility of Tenant. Upon expiration or earlier termination of
this Lease, Tenant shall cause all Hazardous Materials which it introduced into
the Premises or Common Areas to be removed from the Premises and Common Areas
and transported for use, storage or disposal in accordance and in compliance
with all applicable Hazardous Materials Laws. Tenant shall not take any remedial
action in response to the presence of any Hazardous Materials in, on, about or
under the Premises or Park, nor enter into any settlement agreement, consent,
decree or other compromise in respect to any claims relating to any way
connected with the Premises or the Park without Landlord's prior written consent
which shall not be unreasonably withheld, conditioned or delayed. Tenant shall
immediately notify Landlord of Tenant's desire to do so and afford Landlord
ample opportunity to appear, intervene or otherwise appropriately assert and
protect Landlord's interest with respect thereto. In addition, at Landlord's
request, at the expiration of the term of this Lease, Tenant shall remove all
tanks or fixtures which were placed on the Premises during the term of this
Lease and which contain, have contained or are contaminated with, Hazardous
Materials.

      Tenant shall immediately notify Landlord in writing of (a) any
enforcement, clean-up, removal or other governmental or regulatory action
instituted, completed or threatened pursuant to any Hazardous Materials Laws;
(b) any claim made or threatened by any person against Landlord, or the
Premises, relating to damage, contribution, cost recovery, compensation, loss or
injury resulting from or claimed to result from any Hazardous Materials; and (c)
any reports made to any environmental agency arising out of or in connection
with any Hazardous Materials in, on or about the Premises or with respect to any
Hazardous Materials removed from the Premises, including, any complaints,
notices, warnings, reports or asserted violations in connection therewith.
Tenant shall also provide to Landlord, as promptly as possible, and in any event
within five business days after Tenant first receives or sends the same, with
copies of all claims, reports, complaints, notices, warnings or asserted
violations relating in any way to the Premises or Tenant's use thereof. Upon
written request of Landlord, Tenant shall promptly deliver to Landlord notices
of hazardous waste manifests, if Tenant is required by applicable law to obtain
such manifests, reflecting the legal and proper disposal of all such Hazardous
Materials removed or to be removed from the Premises. All such manifests shall
list the Tenant or its agent as a responsible party and in no way shall
attribute responsibility for any such Hazardous Materials to Landlord.

      SECTION 8.4 INDEMNIFICATION. Except to the extent caused by Landlord or
arising from the acts or omissions of Landlord, or its agents, employees,
contractors, or subcontractors, Tenant shall indemnify, defend (with counsel
reasonably acceptable to Landlord), protect and hold

                                       21

<PAGE>

Landlord and each of Landlord's officers, directors, partners, trustees,
employees, agents, attorneys, successors and assigns free and harmless from and
against any and all claims, liabilities, damages, costs, penalties, forfeitures,
losses or expenses (including attorneys' fees) for death or injury to any person
or damage to any property whatsoever (including water tables and atmosphere)
arising or resulting in whole or in part, directly or indirectly, from (i) the
use, storage, handling, presence, release or discharge of Hazardous Materials,
in, on, under, upon or from the Premises or Park (or any part thereof), (ii) the
transportation or disposal of Hazardous Materials to or from the Premises, or
(iii) the breach by Tenant of any of its covenants and obligations set forth in
this Lease concerning Hazardous Materials or the environmental condition of the
Premises or Park, but only to the extent caused by Tenant or its employees,
agents, invitees, subtenants, licensees, contractors or subcontractors, whether
knowingly or unknowingly, the standard herein being one of strict liability.
Tenant's obligations hereunder shall include, without limitation, and whether
foreseeable or unforeseeable, all costs of any required or necessary repairs,
clean-up or detoxification or decontamination of the Premises or Common Areas,
and the presence and implementation of any closure, remedial action or other
required plans in connection therewith, and shall survive the expiration of or
early termination of the term of this Lease.

      Except to the extent caused by Tenant or arising from the acts or
omissions of Tenant, or its agents, employees, invitees, subtenants, licensees,
contractors, or subcontractors, Landlord shall indemnify, defend (with counsel
reasonably acceptable to Tenant), protect and hold Tenant and each of Tenant's
officers, directors, partners, trustees, employees, agents, attorneys,
successors and assigns free and harmless from and against any and all claims,
liabilities, damages, costs, penalties, forfeitures, losses or expenses
(including attorneys' fees) for death or injury to any person or damage to any
property whatsoever (including water tables and atmosphere) to the extent
arising or resulting in whole or in part, directly or indirectly, from the
presence or discharge of Hazardous Materials, in, on, under, upon or from the
Park as of the date of this Lease whether knowingly or unknowingly, the standard
herein being one of strict liability. Landlord's obligations hereunder shall
include, without limitation, and whether foreseeable or unforeseeable, all costs
of any required or necessary repairs, clean-up or detoxification or
decontamination of the Premises, and the presence and implementation of any
closure, remedial action or other required plans in connection therewith, and
shall survive the expiration of or early termination of the term of this Lease.

      SECTION 8.5 ENVIRONMENTAL SITE ASSESSMENTS. If Landlord reasonably
believes that Tenant has not complied with this Article VIII, then upon request
by Landlord during the Term, Tenant shall obtain and submit to Landlord an
environmental site assessment from an environmental company reasonably
acceptable to Landlord and Tenant which assessment shall evidence Tenant's
compliance with this Article VIII. If such assessment evidences compliance then
Landlord shall pay the cost of such assessment.

      SECTION 8.6 ACTS OR OMISSIONS REGARDING HAZARDOUS MATERIALS. For purposes
of the covenants and agreements contained in this Article VIII, (a) any acts or
omissions of Tenant, its directors, shareholders, employees, agents, invitees,
subtenants, licensees, contractors and subcontractors shall be strictly
attributable to Tenant; and (b) any acts or omissions of Landlord, any prior
owner or occupant of the Building or any other occupant of the Park or any of
their

                                       22

<PAGE>

directors, shareholders, employees, agents, customers, invitees, guests,
sublessees, assignees, contractors and subcontractors shall not be attributable
to Tenant.

      SECTION 8.7 SURVIVAL. The respective rights and obligations of the parties
under this Article VII shall survive the expiration or earlier termination of
this Lease.

                                   ARTICLE IX.
                        MECHANIC'S LIENS AND OTHER LIENS

      SECTION 9.1 FREEDOM FROM LIENS. Tenant shall not suffer or permit any
mechanic's lien or other lien to be filed against the Premises, or any portion
thereof, by reason of work, labor, skill, services, equipment or materials
supplied or claimed to have been supplied to the Premises at the request of
Tenant, or anyone holding the Premises, or any portion thereof, through or under
Tenant. If any such mechanic's lien or other lien shall at any time be filed
against the Premises, or any portion thereof, Tenant shall cause the same to be
discharged of record either by voluntary release by the lien claimant or by
posting a bond in the amount required by law, in any case within ten (10) days
after Landlord's demand. If Tenant shall fail to discharge such mechanic's lien
or liens or other lien within such period, then, in addition to any other right
or remedy of Landlord, after five days prior written notice to Tenant, Landlord
may, but shall not be obligated to, discharge the same by paying to the claimant
the amount claimed to be due or by procuring the discharge of such lien as to
the Premises by deposit in the court having jurisdiction of such lien, the
foreclosure thereof or other proceedings with respect thereto, of a cash sum
sufficient to secure the discharge of the same, or by the deposit of a bond or
other security with such court sufficient in form, content and amount to procure
the discharge of such lien, or in such other manner as is now or may in the
future be provided by present or future law for the discharge of such lien as a
lien against the Premises. Any amount paid by Landlord, or the value of any
deposit so made by Landlord, together with all costs, fees and expenses in
connection therewith (including reasonable attorney's fees of Landlord),
together with interest thereon at the Maximum Rate of Interest, shall be repaid
by Tenant to Landlord on demand by Landlord and if unpaid may be treated as
Additional Rent. Tenant shall indemnify and defend Landlord against and save
Landlord and the Premises, and any portion thereof, harmless from all liens,
losses, costs, damages, expenses, liabilities, suits, penalties, claims, demands
and obligations, including, without limitation, reasonable attorney's fees
resulting from the assertion, filing, foreclosure or other legal proceedings
with respect to any such mechanic's lien or other lien.

      All materialmen, contractors, artisans, mechanics, laborers and any other
person now or hereafter furnishing any labor, services, materials, supplies or
equipment to Tenant with respect to the Premises, or any portion thereof, are
hereby charged with notice that they must look exclusively to Tenant to obtain
payment for the same. Notice is hereby given that Landlord shall not be liable
for any labor, services, materials, supplies, skill, machinery, fixtures or
equipment furnished or to be furnished to Tenant upon credit, and that no
mechanic's lien or other lien for any such labor, services, materials, supplies,
machinery, fixtures or equipment shall attach to or affect the estate or
interest of Landlord in and to the Premises, or any portion thereof.

      SECTION 9.2 REMOVAL OF LIENS. Except as otherwise provided for in this
Article IX, Tenant shall not create, permit or suffer, and shall promptly
discharge and satisfy of record, any

                                       23

<PAGE>

other lien, encumbrance, charge, security interest, or other right or interest
which shall be or become a lien, encumbrance, charge or security interest upon
the Premises, or any portion thereof, or the income therefrom, or on the
interest of Landlord or Tenant in the Premises, or any portion thereof, save and
except for those liens, encumbrances, charges, security interests, or other
rights or interests consented to in advance, in writing, by Landlord, or those
mortgages, assignments of rents, assignments of leases and other mortgage
documentation placed thereon by Landlord in financing or refinancing the
Premises. This prohibition shall not apply to any of Tenant's personal property,
fixtures or equipment in the Premises and Landlord's consent shall not be
required for any financing secured thereby.

                                   ARTICLE X.
                                INTENT OF PARTIES

      SECTION 10.1 NET LEASE. Landlord and Tenant do each state and represent
that it is the intention of each of them that this Lease be interpreted and
construed as an absolute net lease on the terms and conditions set forth herein
and all Basic Rent and Additional Rent shall be paid by Tenant to Landlord
without abatement, deduction, diminution, deferment, suspension, reduction or
setoff, except as otherwise specifically provided in this Lease, and the
obligations of Tenant shall not be affected by reason of damage to or
destruction of the Premises from whatever cause (except as provided for in
Article XII hereof); nor shall the obligations of Tenant be affected by reason
of any condemnation, eminent domain or like proceedings (except as provided in
Article XIII hereof); nor shall the obligations of Tenant be affected by reason
of any other cause whether similar or dissimilar to the foregoing or by any laws
or customs to the contrary. It is the further express intent of Landlord and
Tenant that (a) the Basic Rent and Additional Rent, and all other charges and
sums payable by Tenant hereunder, shall commence at the times provided herein
and shall continue to be payable in all events unless the obligations to pay the
same shall be terminated pursuant to an express provision in this Lease; and (b)
all costs or expenses of whatsoever character or kind except as expressly
provided otherwise in this Lease, general or special, ordinary or extraordinary,
foreseen or unforeseen, and of every kind and nature whatsoever that may be
necessary or required in and about the Premises, or any portion thereof, and
Tenant's possession or authorized use thereof during the term of this Lease,
shall be paid by Tenant and all provisions of this Lease are to be interpreted
and construed in light of the intention expressed in this Section 10.1; and (c)
the Base Rent specified in Section 2.2 shall be absolutely net to Landlord so
that this Lease shall yield net to Landlord the Basic Rent specified in Section
2.2 in each year during the term of this Lease (unless extended or renewed at a
different Basic Rent), except as expressly provided otherwise herein.

                                   ARTICLE XI.
                               DEFAULTS OF TENANT

      SECTION 11.1 EVENT OF DEFAULT. If any one or more of the following events
(sometimes called "Events of Default") shall happen:

      (a)   If Tenant shall violate, by operation of law or otherwise, any
            provision of Article XIV hereof relating to assignment, sublease,
            mortgage or other transfer of Tenant's interest in this Lease or in
            the Premises or in the income arising

                                       24

<PAGE>

            therefrom and such violation shall continue for a period of thirty
            (30) days after written notice thereof given by Landlord to Tenant;

      (b)   If Tenant shall fail to pay any Basic Rent or Additional Rent
            payable under this Lease or any other obligation hereunder to be
            paid by Tenant, within five (5) days after written notice that the
            same was not received when due;

      (c)   If Tenant shall fail to keep, observe or perform any of the terms
            contained in this Lease, other than those referred to in
            Subparagraphs (a), (b), and (d) of this Section 11.1, which does not
            expose Landlord to criminal liability, and such failure shall
            continue for a period of 30 days after written notice thereof given
            by Landlord to Tenant, or in the case of such a default or
            contingency which cannot with due diligence and in good faith be
            cured within 30 days, and Tenant fails to proceed promptly and with
            due diligence and in good faith to cure the same and thereafter to
            prosecute the curing of such default with due diligence and in good
            faith, it being intended that in connection with a default which
            does not expose Landlord to criminal liability, not susceptible of
            being cured with due diligence and in good faith within 30 days,
            that the time allowed Tenant within which to cure the same shall be
            extended for such period as may be reasonably necessary for the
            curing thereof promptly with due diligence and in good faith;

      (d)   If Tenant shall fail to keep, observe or perform any of the terms
            contained in this Lease, other than those referred to in
            Subparagraphs (a), (b), and (c) of this Section 11.1, and which
            exposes Landlord to criminal liability, and such default shall
            continue after written notice thereof given by Landlord to Tenant,
            and Tenant fails to proceed timely and promptly with all due
            diligence and in good faith to cure the same and thereafter to
            prosecute the curing of such default with all due diligence, it
            being intended that in connection with a default which exposes
            Landlord to criminal liability that Tenant shall proceed immediately
            to cure or correct such condition with continuity and with all due
            diligence and in good faith;

then, and in any such event, Landlord, at any time thereafter may at its sole
option exercise any or all rights and remedies available to Landlord under this
Lease, at law or in equity, including without limitation termination of this
Lease, repossession of the Premises, and/or recovery of Landlord's damages, all
in accordance with applicable law.

      SECTION 11.2 SURRENDER OF PREMISES. Upon the occurrence of an Event of
Default by Tenant, at any time thereafter, with or without notice or demand
except as required by applicable laws and without limiting Landlord in the
exercise of any right or remedy which Landlord may have, Landlord shall be
entitled to terminate Tenant's right to possession of the Premises by any lawful
means, in which case this Lease shall not terminate (unless and until Landlord
gives written notice to Tenant of its intention to terminate this Lease), and
Tenant shall immediately surrender possession of the Premises to Landlord. In
such event, Landlord shall have the immediate right to enter upon the Premises,
and all portions thereof, and possess and repossess itself thereof, and remove
Tenant and all other persons and property from the Premises, and all

                                       25
<PAGE>

portions thereof, and may have, hold and enjoy the Premises and the right to
receive all rental and other income of and from the same.

      SECTION 11.3 RELETTING BY LANDLORD. At any time, or from time to time
after any termination of Tenant's right to possession of the Premises, Landlord
may relet the Premises, or any portion thereof, in the name of Landlord or
otherwise, for such term or terms (which may be greater or less than the period
which would otherwise have constituted the balance of the term of this Lease)
and on such conditions (which may include concessions or free rent) as Landlord,
in its uncontrolled discretion, may determine and may collect and receive the
rents therefor. Landlord shall in no way be responsible or liable for any
failure to relet the Premises, or any part thereof, or for any failure to
collect any rent due upon any such reletting provided that Landlord must make
reasonable efforts to mitigate its damages.

      SECTION 11.4 NON-TERMINATION OF LEASE. Unless and until Landlord gives
Tenant written notice stating specifically that Landlord has elected to proceed
under Section 11.5 hereof, no termination of Tenant's right to possession of the
Premises shall relieve Tenant of its liabilities and obligations under this
Lease, and such liabilities and obligations shall survive any such termination.
In the event of any such termination, whether or not the Premises, or any
portion thereof, shall have been relet, Tenant shall pay to Landlord a sum equal
to the Basic Rent, and the Additional Rent and any other charges required to be
paid by Tenant, up to the time of such termination of this Lease, and thereafter
Tenant, until the end of what would have been the term of this Lease in the
absence of such termination, shall be liable to Landlord for, and shall pay to
Landlord, as and for liquidated and agreed current damages for Tenant's default:

      (a)   The equivalent of the amount of the Basic Rent and Additional Rent
            which would be payable under this Lease by Tenant if this Lease were
            still in effect, less

      (b)   The net proceeds of any reletting effected pursuant to the
            provisions of Section 11.3 hereof after deducting all of Landlord's
            reasonable expenses in connection with such reletting including,
            without limitation, all repossession costs, brokerage commissions,
            legal expenses, reasonable attorney's fees, alteration costs, and
            expenses of preparation of the Premises, or any portion thereof, for
            such reletting.

      Tenant shall pay such current damages in the amount determined in
accordance with the terms of this Section 11.4, as set forth in a written
statement thereof from Landlord to Tenant (hereinafter called the "Deficiency"),
to Landlord in monthly installments on the days on which the Basic Rent would
have been payable under this Lease if this Lease were still in effect, and
Landlord shall be entitled to recover from Tenant each monthly installment of
the Deficiency as the same shall arise.

      SECTION 11.5 TERMINATION OF LEASE. At any time after an Event of Default,
whether before or after termination of Tenant's right to possession of the Lease
Premises, whether or not Landlord shall have collected any monthly Deficiency as
set forth in Section 11.4, Landlord shall be entitled to terminate this Lease
and recover from Tenant, and Tenant shall pay to Landlord, on demand, as and for
final damages for Tenant's default, an amount equal to the difference

                                       26
<PAGE>

between the then present worth of the aggregate of the Basic Rent and Additional
Rent and any other charges to be paid by Tenant hereunder for the unexpired
portion of the term of this Lease (assuming this Lease had not been so
terminated), and the then present worth of the then aggregate fair and
reasonable fair market rent of the Premises for the same period. In the
computation of present worth, a discount at the rate of 6% per annum shall be
employed. If the Premises, or any portion thereof, be relet by Landlord for the
unexpired term of this Lease, or any part thereof, before presentation of proof
of such damages to any court, commission or tribunal, the amount of rent
reserved upon such reletting shall, prima facie, be the fair and reasonable fair
market rent for the part or the whole of the Premises so relet during the term
of the reletting. Nothing herein contained or contained in this Article XI shall
limit or prejudice the right of Landlord to prove for and obtain, as damages by
reason of such termination, an amount equal to the maximum allowed by any
statute or rule of law in effect at the time when, and governing the proceedings
in which, such damages are to be proved, whether or not such amount be greater,
equal to or less than the amount of the difference referred to above.

      SECTION 11.6 NO WAIVER. No failure by Landlord or by Tenant to insist upon
the performance of any of the terms of this Lease or to exercise any right or
remedy consequent upon a breach thereof, and no acceptance by Landlord of full
or partial rent from Tenant or any third party during the continuance of any
such breach, shall constitute a waiver of any such breach or of any of the terms
of this Lease, except that acceptance of any late payment shall waive the
default with respect to such payment. None of the terms of this Lease to be
kept, observed or performed by Landlord or by Tenant, and no breach thereof,
shall be waived, altered or modified except by a written instrument executed by
Landlord and/or by Tenant, as the case may be. No waiver of any breach shall
affect or alter this Lease, but each of the terms of this Lease shall continue
in full force and effect with respect to any other then existing or subsequent
breach of this Lease. No waiver of any default of Tenant or Landlord herein
shall be implied from any omission by Landlord or Tenant (as applicable) to take
any action on account of such default, if such default persists or is repeated
and no express waiver shall affect any default other than the default specified
in the express waiver and that only for the time and to the extent therein
stated. One or more waivers shall not be construed as a waiver of a subsequent
breach of the same covenant, term or condition.

      SECTION 11.7 REMEDIES. In the event of any breach by Tenant or Landlord of
any of the terms contained in this Lease, the other party shall be entitled to
enjoin such breach and shall have the right to invoke any right or remedy
allowed at law or in equity or by statute or otherwise as though entry, reentry,
summary proceedings and other remedies were not provided for in this Lease. Each
remedy or right of a party provided for in this Lease shall be cumulative and
shall be in addition to every other right or remedy provided for in this Lease,
or now or hereafter existing at law or in equity or by statute or otherwise, and
the exercise or the beginning of the exercise by a party of any one or more of
such rights or remedies shall not preclude the simultaneous or later exercise by
such party of any or all other rights or remedies. Notwithstanding the
foregoing, Landlord shall not be in breach of this Lease and Tenant shall not
exercise any of its rights or remedies for such breach unless and until the
notice(s) have been given and cure period expired as provided under Section
15.2.

                                       27
<PAGE>

      SECTION 11.8 BANKRUPTCY. If during the term of this Lease, (a) Tenant
shall make an assignment for the benefit of creditors, (b) a voluntary petition
be filed by Tenant under any law having for its purpose the adjudication of
Tenant a bankrupt, or Tenant be adjudged a bankrupt pursuant to an involuntary
petition in bankruptcy, (c) a receiver be appointed for the property of Tenant,
or (d) any department of the state or federal government, or any officer thereof
duly authorized, shall take possession of the business or property of Tenant,
the occurrence of any such contingency shall be deemed a breach of the Lease and
this Lease shall, ipso facto upon the happening of any of said contingencies, be
terminated and the same shall expire as fully and completely as if the day of
the happening of such contingency were the date herein specifically fixed for
the expiration of the term, and Tenant will then quit and surrender the
Premises, but Tenant shall remain liable as hereinafter provided.
Notwithstanding other provisions of this Lease, or any present or future law,
Landlord shall be entitled to recover from Tenant or Tenant's estate (in lieu of
the equivalent of the amount of all rent and other charges unpaid at the date of
such termination) as damages for loss of the bargain and not as a penalty, an
aggregate sum which at the time of such termination represents the difference
between the then present worth of the aggregate of the Basic Rent and Additional
Rent and any other charges payable by Tenant hereunder that would have accrued
for the balance of the term of this Lease (assuming this Lease had not been so
terminated), over the then present worth of the aggregate fair market rent of
the Premises for the balance of such period, unless any statute or rule of law
covering the proceedings in which such damages are to be proved shall limit the
amount of such claim capable of being so proved, in which case Landlord shall be
entitled to prove as and for damages by reason of such breach and termination of
this Lease the maximum amount which may be allowed by or under any such statute
or rule of law without prejudice to any rights of Landlord against any guarantor
of Tenant's obligations herein. In the computation of present worth, a discount
rate of 6% per annum shall be employed. Nothing contained herein shall limit or
prejudice Landlord's right to prove and obtain as damages arising out of such
breach and termination the maximum amount allowed by any such statute or rule of
law which may govern the proceedings in which such damages are to be proved,
whether or not such amount be greater, equal to, or less than the amount of the
excess of the present value of the rent and other charges required herein over
the present value of the fair market rents referred to above. Specified remedies
to which Landlord may resort under the terms of this Section 11.8 are cumulative
and are not intended to be exclusive of any other remedies or means of redress
to which Landlord may be lawfully entitled.

                                  ARTICLE XII.
                           DESTRUCTION AND RESTORATION

      SECTION 12.1 LANDLORD'S REPAIR OBLIGATIONS. If the Premises, Common Areas,
the Park or any improvements thereto shall be damaged by fire or other casualty
for which Landlord is carrying or required by this Lease to carry insurance,
then Landlord shall immediately and with all due diligence commence and complete
the repair of such damage (including damage to all personal property, fixtures
and improvements in the Premises owned by Landlord and used by Tenant), unless
this Lease is terminated as provided herein. In the event the damage or
destruction is an insured loss, for so long as Landlord is diligently pursuing
collection of the insurance proceeds, the time period for Landlord to commence
repair shall be extended until the proceeds are received. From the date the
damage occurs to the date the repairs are complete, any rent due hereunder shall
be reduced by the same percentage as the percentage of the Premises

                                       28
<PAGE>

which are damaged or destroyed, except to the extent that Tenant receives the
proceeds of rental or business interruption insurance applicable to such rents.
Anything herein to the contrary notwithstanding, if any damage or destruction to
the Premises from any cause whatsoever is not, or in Landlord's reasonable
judgment cannot be, repaired within two hundred seventy (270) days after receipt
of insurance proceeds and building permits, then Landlord shall give Tenant
notice thereof, and thereafter either Tenant or Landlord may terminate this
Lease by delivering written notice to the other within thirty (30) days of the
date of Landlord's notice. In addition, if any damage or destruction to the
Premises from any cause whatsoever occurs and (a) the cost to repair such damage
exceeds fifty percent (50%) of the replacement cost of the Premises, (b) the
portion of damage or destruction that is uninsurable through reasonable
insurance policies typically maintained by landlords in the Greater
Seattle-Bellevue-Renton metropolitan area exceeds $100,000, or (c) the cost of
restoration exceeds available insurance proceeds by more than $100,000; and
Landlord elects not to repair such damage, then Landlord shall have the right to
terminate this Lease by written notice to Tenant given within sixty (60) days
after the date of such determination by Landlord, In addition, if any damage or
destruction to the Premises from any cause whatsoever occurs and such damage is
not repaired within two hundred seventy (270) days after receipt of insurance
proceeds and building permits, then Tenant may terminate this Lease by
delivering written notice to Landlord prior to Landlord's tender of possession.

      In no event shall Landlord be obligated to repair or restore any special
equipment or improvements installed by Tenant. Tenant agrees that promptly after
completion of such work by Landlord, it will proceed with reasonable diligence
and at its sole cost and expense to rebuild, repair and/or replace its signs,
fixtures and equipment used by Tenant to the extent Tenant deems necessary for
its operations in the Premises.

      Notwithstanding anything to the contrary herein contained, in the event
the Premises shall be damaged or destroyed by fire or otherwise in excess of
thirty percent (30%) of the full replacement cost of the Premises during the
last twelve (12) months of the Term, either party shall have the option to
terminate this Lease as of the date of such damage or destruction by giving
written notice to the other party within ninety (90) days following the date of
such damage or destruction unless Tenant exercises at least one Renewal Term
option within ten (10) days of Landlord's notice.

      SECTION 12.2 OTHER DAMAGE. In the event that more than fifty percent (50%)
of the value of the Park is damaged or destroyed by fire or other casualty, and
irrespective of whether such damage or destruction can be repaired within one
hundred eighty (180) days thereafter, then Landlord, at its option, by written
notice to the other party mailed within ninety (90) days from the date of such
damage or destruction, may terminate this Lease effective upon a date within
ninety (90) days from the date of such notice provided that Landlord must
terminate the leases of all its tenants in the Park.

      SECTION 12.3 RENT APPORTIONMENT. In the event of a termination of this
Lease pursuant to this Article XII, the Basic Rent and Additional Rent shall be
apportioned on a per diem basis and paid to the date of such termination,
provided, however, that if the Premises are damaged or destroyed, Basic Rent and
Additional Rent shall be proportionately reduced from the date of such

                                       29
<PAGE>

damage or destruction based upon the extent to which the damage and making of
repairs shall reasonably interfere with the business carried on by Tenant in the
Premises.

                                  ARTICLE XIII.
                                  CONDEMNATION

      SECTION 13.1 GENERAL RIGHTS UPON CONDEMNATION. If the whole or any
substantial portion of the Premises shall be taken under the power of eminent
domain, or conveyed in lieu thereof ("taken"), then this Lease shall terminate
as to the part so taken on the day when Tenant or Landlord is required to yield
possession thereof. Landlord shall make such repairs and alterations as may be
necessary in order to restore the part not taken to a condition satisfactory for
Tenant's use, and any rent due hereunder shall abate upon that portion of the
Premises which cannot reasonably be used by Tenant for operation of its business
while such repairs are being made. The Basic Rent and Additional Rent due
hereunder shall thereafter be fairly and equitably reduced in accordance with
the portion so condemned or taken effective as of the date of such condemnation
or taking. The foregoing notwithstanding, Landlord's expenses in restoring,
repairing and altering in the event of a condemnation shall be limited to
available condemnation proceeds after deducting the reasonable cost of
recovering the same but if Landlord does not fully restore the Premises Tenant
may either terminate this Lease or elect to keep this Lease in effect but pay
equitably reduced rent based on the degree of interference with its use. In
addition, if (a) in Tenant's reasonable judgment, the portion of the Premises so
taken materially adversely impairs the economic viability of the business then
being operated in the Premises, (b) more than twenty percent (20%) of the
parking in the Park is taken, or (c) more than thirty-five percent (35%) of the
Premises are taken, then Tenant, or Landlord in the event subsection (c) shall
occur, shall have the option to terminate this Lease at any time within sixty
(60) days after Tenant or Landlord is required to yield possession of the area
so taken, and Basic Rent and Additional Rent shall be abated from the date of
the taking pro rata in accordance with the portion of the Premises as to which
this Lease is terminated incident to the taking. In addition, if more than
thirty percent (30%) of the buildings upon the Park, including the Premises,
shall be taken at any time and Landlord elects not to repair, alter, rebuild or
reconstruct, then Landlord shall have the right to terminate this Lease by
written notice to Tenant given within sixth (60) days after the date of such
taking provided that Landlord terminates the leases of all its tenants in the
Park.

      SECTION 13.2 AWARD. The entire compensation award therefor, including, but
not limited to, all damages as compensation for diminution in value of the
leasehold, the reversion or the fee, shall belong to Landlord without any
deductions therefrom or any present or future estate of Tenant, and Tenant
hereby assigns to Landlord all of its right, title and interest in any such
award. Tenant shall have the right to claim and recover from the condemning
authority, but not from Landlord, such compensation as may be separately awarded
or recoverable by Tenant, in Tenant's own right on account of Tenant's
relocation expenses and any and all damage to Tenant's business by reason of the
condemnation and for or on account of any cost or loss which Tenant might incur
in removing Tenant's merchandise, furniture, fixtures, leasehold improvements
and equipment; provided, however, Tenant shall have no right to receive any
award for its interest in this Lease or for the loss of leasehold, and provided
further, however, Tenant shall not be entitled to claim any award to the extent
the award to Landlord would be reduced below the amount that would be allowed to
Landlord absent such claim by Tenant.

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<PAGE>

                                  ARTICLE XIV.
                          ASSIGNMENT, SUBLETTING, ETC.

      SECTION 14.1 RESTRICTION ON TRANSFER. Except as permitted in Section 14.5
below, Tenant shall not sublet the Premises, or any portion thereof, nor assign,
mortgage, pledge, transfer or otherwise encumber or dispose of this Lease, or
any interest therein, or in any manner assign, mortgage, pledge, transfer or
otherwise encumber or dispose of its interest or estate in the Premises, or any
portion thereof, without obtaining Landlord's prior written consent in each and
every instance, which consent shall not be unreasonably withheld, conditioned or
delayed. For purposes of this Article XIV, a change in control of Tenant,
however effected, including by operation of law, shall be deemed an assignment
of this Lease; "control" shall mean the possession of the power to direct or
cause the direction of the management and policies of Tenant, whether through
ownership of voting securities, contract or otherwise. The immediately preceding
sentence, however, shall not be applicable to any Tenant corporation the
outstanding voting stock of which is listed on a national securities exchange.
In determining whether or not to grant its consent to the Tenant's sublet or
assignment request, Landlord may consider any reasonable factor, including
without limitation, the following:

      (i)   financial strength of the proposed subtenant/assignee, as evidenced
            by financial statements prepared by an independent public
            accountant, reasonably satisfactory to Landlord;

      (ii)  business reputation of the proposed subtenant/assignee satisfactory
            to Landlord; and

      (iii) use of the Premises by the proposed subtenant/assignee will be only
            for the Permitted Use and will not violate this Lease.

      In addition to the foregoing requirements of this Section 14.1, Landlord's
consent to any such proposed transfer and Tenant's right to make a Permitted
Transfer (defined in Section 14.5) are each conditioned upon Tenant complying
with the following requirements:

      (a)   Any assignment of this Lease shall transfer to the assignee all of
            Tenant's right, title and interest in this Lease and all of Tenant's
            estate or interest in the Premises.

      (b)   At the time of any assignment or subletting, and at the time when
            Tenant requests Landlord's written consent thereto, this Lease must
            be in full force and effect, without any uncured Event of Default.

      (c)   Any such assignee shall assume, by written, recordable instrument,
            in form and content satisfactory to Landlord, the due performance of
            all of Tenant's obligations thereafter arising under this Lease, and
            such assumption agreement shall state that the same is made by the
            assignee for the express benefit of Landlord as a third party
            beneficiary thereof. A copy of the assignment and assumption
            agreement, both in form and content reasonably satisfactory to
            Landlord, fully executed and acknowledged by assignee, together with
            a certified

                                       31
<PAGE>

            copy of a properly executed corporate resolution (if the assignee be
            a corporation) authorizing the execution and delivery of such
            assumption agreement, shall be provided to Landlord at least ten
            (10) days prior to the effective date of such assignment.

      (d)   In the case of a subletting, a copy of any sublease fully executed
            and acknowledged by Tenant and the sublessee shall be provided to
            Landlord at least ten (10) days prior to the effective date of such
            subletting, which sublease shall be in form and content reasonably
            acceptable to Landlord.

      (e)   Such assignment or subletting shall be subject to all the
            provisions, terms, covenants and conditions of this Lease, and
            Tenant-assignor (and the guarantor or guarantors of this Lease, if
            any) and the assignee or assignees shall each execute any document
            reasonably requested by Landlord affirming that they continue to be
            and remain liable under this Lease and any guaranty, as applicable,
            as such may be amended from time to time without notice to any
            assignor of Tenant's interest or to any guarantor.

      (f)   Each sublease permitted under Section 14.1 or Section 14.5 shall
            contain provisions to the effect that (i) such sublease is only for
            actual use and occupancy by the sublessee; (ii) such sublease is
            subject and subordinate to all of the terms, covenants and
            conditions of this Lease and to all of the rights of Landlord
            thereunder; and (iii) in the event this Lease shall terminate before
            the expiration of such sublease, the sublessee thereunder will, at
            Landlord's option, attorn to Landlord and waive any rights the
            sublessee may have to terminate the sublease or to surrender
            possession thereunder, as a result of the termination of this Lease.

      (g)   Tenant agrees to pay on behalf of Landlord any and all reasonable
            costs of Landlord, including reasonable attorney's fees paid or
            payable to outside counsel, occasioned by such assignment or
            subletting up to a maximum of $5,000.

      SECTION 14.2 RESTRICTION FROM FURTHER ASSIGNMENT. Notwithstanding anything
contained in this Lease to the contrary and notwithstanding any consent by
Landlord to any sublease of the Premises, or any portion thereof, or to any
assignment of this Lease or of Tenant's interest or estate in the Premises, no
sublessee shall assign its sublease nor further sublease the Premises, or any
portion thereof, and no assignee shall further assign its interest in this Lease
or its interest or estate in the Premises, or any portion thereof, nor sublease
the Premises, or any portion thereof, without Landlord's prior written consent
in each and every instance. No such assignment or subleasing shall relieve
Tenant from any of Tenant's obligations contained in this Lease.

      SECTION 14.3 TENANT'S FAILURE TO COMPLY. Tenant's failure to comply with
all of the foregoing provisions and conditions of this Article XIV shall
(whether or not Landlord's consent is required under this Article), at
Landlord's option, render any purported assignment or subletting null and void
and of no force and effect.

                                       32
<PAGE>

      SECTION 14.4 SHARING OF EXCESS RENT. If Landlord consents to Tenant
assigning its interest under this Lease or subletting all or any portion of the
Premises (other than a Permitted Transfer), Tenant shall pay to Landlord (in
addition to Rent and all other amounts payable by Tenant under this Lease) fifty
percent (50%) of the consideration payable by such assignee or subtenant
(excluding any affiliate of Tenant or Tenant's parent) in excess of the Rent
otherwise payable by Tenant from time to time under this Lease, after deducting
from such excess rents all of Tenant's reasonable expenses in connection with
such assigning or subletting, including, without limitation, all brokerage
commissions, legal expenses, reasonable attorneys' fees, alteration costs, and
expenses of preparation of Premises, or portion thereof, for such assigning or
subletting. For the purposes of this computation, the additional amount payable
by Tenant shall be determined by application of the rental rate per square foot
for the Premises or any portion thereof sublet. Said additional amount shall be
paid to Landlord immediately upon receipt by Tenant of such consideration from
the assignee or subtenant.

      SECTION 14.5 PERMITTED TRANSFERS. Notwithstanding Section 14.1, Tenant may
sublet or assign all or part of its interest in this Lease or all or part of the
Premises (a "Permitted Transfer") to the following types of entities (a
"Permitted Transferee") without the written consent of Landlord:

      (i)   any person or entity which, directly or indirectly, through one or
            more intermediaries, controls, is controlled by, or is under common
            control with Tenant;

      (ii)  any corporation, limited partnership, limited liability partnership,
            limited liability company or other business entity in which or with
            which Tenant, or its corporate successors or assigns, is merged or
            consolidated, in accordance with applicable statutory provisions
            governing merger and consolidation of business entities, so long as
            (A) Tenant's obligations hereunder are assumed by the entity
            surviving such merger or created by such consolidation; and (B) the
            Tangible Net Worth (defined below) of the surviving or created
            entity is not less than $40 million as of the date of the transfer;
            or

      (iii) any corporation, limited partnership, limited liability partnership,
            limited liability company or other business entity acquiring all or
            substantially all of Tenant's assets if such entity's Tangible Net
            Worth after such acquisition is not less than $40 million as of the
            date of the transfer.

Tenant shall promptly notify Landlord of any such Permitted Transfer. Tenant
shall remain liable for the performance of all of the obligations of Tenant
hereunder, or if Tenant no longer exists because of a merger, consolidation, or
acquisition, the surviving or acquiring entity shall expressly assume in writing
the obligations of Tenant hereunder. Additionally, the Permitted Transferee
shall comply with all of the terms and conditions of this Lease, and the use of
the Premises by the Permitted Transferee may not violate any other agreements
affecting the Premises, the Building or the Park, Landlord or other tenants of
the Park. No later than five (5) business days after the effective date of any
Permitted Transfer, Tenant agrees to furnish Landlord with (A) copies of the
instrument effecting any of the foregoing transfers,

                                       33
<PAGE>

(B) documentation establishing Tenant's satisfaction of the requirements set
forth above applicable to any such transfer, and (C) evidence of insurance as
required under this Lease with respect to the Permitted Transferee. The
occurrence of a Permitted Transfer shall not waive Landlord's rights as to any
subsequent transfers. "Tangible Net Worth" means the excess of total assets over
total liabilities, in each case as determined in accordance with generally
accepted accounting principles consistently applied ("GAAP"), excluding,
however, from the determination of total assets all assets which would be
classified as intangible assets under GAAP including goodwill, licenses,
patents, trademarks, trade names, copyrights, and franchises. Any subsequent
transfer by a Permitted Transferee shall be subject to the terms of this Article
XIV.

                                   ARTICLE XV.
                         SUBORDINATION, NONDISTURBANCE,
                       NOTICE TO MORTGAGEE AND ATTORNMENT

      SECTION 15.1 SUBORDINATION BY TENANT. This Lease and all rights of Tenant
therein, and all interest or estate of Tenant in the Premises, or any portion
thereof, shall be subject and subordinate to the lien of any mortgage, deed of
trust, security instrument or other document of like nature ("Mortgage"), which
at any time may be placed upon the Premises, or any portion thereof, by
Landlord, and to any replacements, renewals, amendments, modifications,
extensions or refinancing thereof, and to each and every advance made under any
Mortgage. In order to confirm such subordination, Tenant agrees at any time
hereafter, and from time to time on demand of Landlord, to execute and deliver
to Landlord any reasonable instruments, releases or other documents that may be
reasonably required for the purpose of subjecting and subordinating this Lease
to the lien of any such Mortgage, including an instrument in the form of EXHIBIT
C attached hereto. It is agreed, nevertheless, that so long as Tenant is not in
default in the payment of Basic Rent and Additional Rent and the performance and
observance of all covenants, conditions, provisions, terms and agreements to be
performed and observed by Tenant under this Lease, that such subordination
agreement or other instrument, release or document shall not interfere with,
hinder or molest Tenant's rights under this Lease, nor the right of Tenant to
continue to occupy the Premises, and all portions thereof, and to conduct its
business thereon in accordance with the covenants, conditions, provisions, terms
and agreements of this Lease. The lien of any such Mortgage shall not cover
Tenant's trade fixtures or other personal property located in or on the
Premises. Landlord shall request and diligently pursue a subordination and
non-disturbance agreement from the holder of any Mortgage in effect on the date
of this Lease in the form attached hereto as EXHIBIT C.

      SECTION 15.2 LANDLORD'S DEFAULT. In the event of any act or omission of
Landlord constituting a default by Landlord, Tenant shall not exercise any
remedy, except as specifically provided for in this Lease, until Tenant has
given Landlord prior written notice of such act or omission and until a 30-day
period of time to allow Landlord or the mortgagee to remedy such act or omission
shall have elapsed following the giving of such notice; provided, however, if
such act or omission cannot, with due diligence and in good faith, be remedied
within such 30-day period, the Landlord and/or mortgagee shall be allowed such
further period of time as may be reasonably necessary provided that it shall
have commenced remedying the same with due diligence and in good faith within
said 30-day period. In the event Landlord's act or omission

                                       34
<PAGE>

which constitutes a Landlord's default hereunder results in an immediate threat
of bodily harm to Tenant's employees, agents or invitees, or damage to Tenant's
property Tenant may proceed to cure the default without prior notice to Landlord
provided, however, in that event Tenant shall give written notice to Landlord as
soon as possible after commencement of such cure. Nothing herein contained shall
be construed or interpreted as requiring any mortgagee to remedy such act or
omission.

      SECTION 15.3 ATTORNMENT. If any mortgagee shall succeed to the rights of
Landlord under this Lease or to ownership of the Premises, whether through
possession or foreclosure or the delivery of a deed to the Premises, then, upon
the written request of such mortgagee so succeeding to Landlord's rights
hereunder, Tenant shall attorn to and recognize such mortgagee as Tenant's
landlord under this Lease, and shall promptly execute and deliver any instrument
that such mortgagee may reasonably request to evidence such attornment (whether
before or after making of the mortgage). In the event of any other transfer of
Landlord's interest hereunder, upon the written request of the transferee and
Landlord, Tenant shall attorn to and recognize such transferee as Tenant's
landlord under this Lease and shall promptly execute and deliver any instrument
that such transferee and Landlord may reasonably request to evidence such
attornment. Any party to whom Tenant is asked to attorn must agree to assume and
perform Landlord's obligations under this Lease.

                                  ARTICLE XVI.
                                      SIGNS

      SECTION 16.1 TENANT'S SIGNS. Tenant may, at its sole cost and expense,
erect signs on the exterior or interior of the Building, provided that such sign
or signs (a) do not cause any structural damage or other damage to the Building;
(b) do not violate applicable governmental laws, ordinances, rules or
regulations; (c) do not violate any existing restrictions affecting the
Premises; (d) are in accordance with the sign standards for Willows Commerce
Park set forth on EXHIBIT D attached hereto; and (e) all signage is approved by
Landlord (which approval shall not be unreasonably withheld) and the City of
Redmond. Tenant, upon vacation of the Premises, or the removal or alteration of
its signs for any reason, shall be responsible for the repair, painting and/or
replacement of the Building fascia surface where signs are attached.

                                  ARTICLE XVII.
                                REPORTS BY TENANT

      SECTION 17.1 ANNUAL STATEMENTS. Upon request by Landlord at any time after
90 days after the end of the applicable fiscal year of Tenant or at any time in
the event of a proposed refinance or sale of the Property, if such statements
are not available from a public source such as SEC.gov, Tenant shall deliver to
Landlord promptly after written request a financial statement or annual report
of Tenant for such fiscal year, and a financial statement or annual report of
any guarantor of Tenant's obligations under this Lease for such guarantor's
fiscal year, which finance statement(s) or annual report(s) shall be prepared in
accordance with generally accepted accounting principles and prepared by an
independent certified public accountant and certified by an officer of Tenant or
guarantor, as applicable, as true, accurate and correct in all material

                                       35
<PAGE>

respects. Landlord acknowledges that Tenant's financial statements are currently
presented in a consolidated format with that of its parent company.

                                 ARTICLE XVIII.
                             CHANGES AND ALTERATIONS

      SECTION 18.1 TENANT'S CHANGES AND ALTERATIONS. Tenant shall not make any
modifications, improvements, alterations, additions or installations in or to
the Premises (hereinafter referred to in this paragraph as the "work") without
Landlord's prior written consent, which consent shall not be unreasonably
withheld or delayed. Along with any request for Landlord's consent and before
commencement of any work or delivery of any materials to be used in any work to
the Premises or into the Park, Tenant shall furnish Landlord with plans and
specifications, names and addresses of contractors. Unless Landlord, in its
consent, in writing, states that upon expiration or termination of the Term of
this Lease, Landlord will require Tenant to remove all or any of the proposed
alterations described in Tenant's plans and specifications and restore the
Premises to the same condition they were immediately prior to such alterations,
then Landlord shall not have the right, pursuant to Section 19.19, to require
removal thereof as otherwise set forth in Section 19.19. Tenant shall not be
required to remove any of the following items: wall coverings, floor coverings,
structural changes, offices or other improvements comparable to those in the
Premises on the date hereof. Tenant agrees to defend and hold Landlord harmless
from any and all liens, claims and liabilities of any kind and description which
may arise out of or be connected in any way with said modifications,
improvements, alterations, additions or installations. All such work shall be
done only by contractors or mechanics reasonably approved by Landlord. Tenant
shall pay the cost of all such modifications, improvements, alterations,
additions or installations. Upon completion of the work, Tenant shall furnish
Landlord with contractor's affidavits and full and final waivers of liens. All
such work shall comply with all insurance requirements and all laws, ordinances,
rules and regulations of all governmental authorities and shall be constructed
in a good and workmanlike manner. Tenant shall permit Landlord to inspect
construction operations in connection with any such work. Tenant or Tenant's
contractor shall perform all work in such manner as to avoid materially
interfering with Landlord's operation of the Park. Notwithstanding anything to
the contrary contained herein, Tenant shall be permitted to perform work not
affecting the structural, electrical or mechanical systems of the Premises or
the Park which does not in the aggregate cost more than $50,000 in any twelve
(12) month period (but subject to all the other terms of this Section 18 other
than the requirement to obtain Landlord's prior consent to such work.

                                  ARTICLE XIX.
                            MISCELLANEOUS PROVISIONS

      SECTION 19.1 ENTRY BY LANDLORD. Landlord shall have the right to enter the
Premises for any reasonable purpose after providing a minimum of 48 hours'
informal notice to Tenant's designated employee of the need to access the
Premises, unless required by any governmental agency or emergency situation to
have earlier access. Tenant shall coordinate all access and Landlord shall be
accompanied by a designated representative of Tenant at all times. Nothing
herein contained shall imply any duty upon the part of Landlord to do any such
work which, under any provision of this Lease, Tenant may be required to perform
and the performance

                                       36
<PAGE>

thereof by Landlord shall not constitute a waiver of Tenant's default in failing
to perform the same. Landlord may, during the progress of any work, keep and
store upon the Premises all necessary materials, tools and equipment. Landlord
shall not in any event be liable for inconvenience, annoyance, disturbance, loss
of business or other damage to Tenant by reason of making repairs or the
performance of any work in or about the Premises, or on account of bringing
material, supplies and equipment into, upon or through the Premises during the
course thereof, and the obligations of Tenant under this Lease shall not be
thereby affected in any manner whatsoever. Landlord shall use its best efforts
to avoid interfering with the conduct of Tenant's business.

      SECTION 19.2 EXHIBITION OF PREMISES. Landlord is hereby given the right
during usual business hours at any time during the term of this Lease after 24
hours' notice and in the company of Tenant's representative to enter upon the
Premises and to exhibit the same for the purpose of mortgaging, selling or
leasing the same (provided that prospective tenants may enter the Premises only
during the last twelve (12) months of the Term). During the final twelve (12)
months of the Term, Landlord shall be entitled to display on the Premises, in
such manner as to not unreasonably interfere with Tenant's business, signs
indicating that the Premises are for rent or sale and suitably identifying
Landlord or its agent. Tenant agrees that such signs may remain unmolested upon
the Premises and that Landlord may exhibit said premises to prospective tenants
during said period.

      SECTION 19.3 WAIVER. Except as otherwise expressly provided herein,
Landlord shall not be liable for any loss or damage to any person or property
sustained by Tenant, or other persons, which may be caused by theft, or by an
act or neglect of any tenant of the Park or by any other person in or about the
Building or Park. Neither Landlord nor any partner, director, officer, trustee,
agent, servant or employee of Landlord shall be liable to Tenant for any loss,
injury of damage to Tenant or to any other person, or to its or their property,
irrespective of the cause of such injury, damage or loss, except to the extent
caused by or resulting from the negligence or willful misconduct of Landlord,
its agents, servants or employees. Further, neither Landlord nor Tenant nor any
partner, director, officer, trustee, agent, servant or employee of Landlord or
Tenant shall be liable: (i) for any such damage caused by other tenants or
persons in, upon or about the Building, or caused by operations in construction
of any private, public or quasi-public work; or (ii) even if negligent, for
incidental or consequential damages, including lost profits, of the other party
or any person claiming through or under the other party.

      SECTION 19.4 INDEMNIFICATION. Except as otherwise provided herein, Tenant
covenants to indemnify, defend and hold harmless Landlord and its partners,
directors, officers, trustees, agents, employees, successors and assigns from
and against all claims, and all costs, expenses and liabilities incurred in
connection with such claims, including any action or proceeding brought thereon,
arising from or as a result of (1) the use or occupancy of the Premises or Park
by Tenant, its agents, employee, invitees or visitors, (2) any accident, injury,
loss, or damage whatsoever caused to any natural person, or to the property of
any person, alleged to have occurred on the Premises during the term of this
Lease, or (3) any alleged or proven negligence or willful misconduct of Tenant
or of any sublessee, concessionaire, licensee or departmental lessee of Tenant
or of the agents, contractors, servants or employees of Tenant or of any such
sublessee, concessionaire, licensee or departmental lessee of Tenant during the
term of this Lease

                                       37
<PAGE>

alleged or proven to have occurred in or about the Park exclusive of the
Premises; excepting, however, in each case, claims, accidents, injuries, loss or
damages to the extent the same arise from or as a result of any alleged or
proven negligence or willful misconduct of Landlord or its agents, contractors,
servants or employees (for which Landlord shall indemnify Tenant except as
otherwise expressly provided herein), except to the extent Tenant has waived a
claim against Landlord pursuant to Section 5.4. The provisions of this Section
19.4 shall survive the expiration or termination of this Lease.

      SECTION 19.5 NOTICES. All notices, demands and requests which may be or
are required to be given, demanded or requested by either party to the other
shall be in writing. All notices, demands and requests shall be sent by United
States registered or certified mail, postage prepaid or by a nationally
recognized independent overnight courier service, addressed as follows:

         To Landlord:     Willows Commerce Park
                          c/o Kessler & Kessler
                          1000 Marina Village Parkway, Suite 130
                          Alameda, CA 94501
                          Fax:(510)814-6609

           To Tenant:     TFS Electronic Manufacturing
                          1600 North Desert Drive
                          Tempe, AZ 85281-1230
                          Attn: George Pisaruk
                          Fax: (602)389-8832

or at such other place which is not a post office box as either party may from
time to time designate by written notice to the other. Notices, demands and
requests which shall be served upon Landlord by Tenant, or upon Tenant by
Landlord, in the manner aforesaid, shall be deemed to be sufficiently served or
given for all purposes hereunder on the earlier of actual receipt or the third
day after such notice, demand or request shall be mailed or delivered by
courier.

      SECTION 19.6 QUIET ENJOYMENT. Landlord covenants and agrees that Tenant,
upon paying the Basic Rent and Additional Rent, and upon observing and keeping
the covenants, agreements and conditions of this Lease on its part to be kept,
observed and performed, shall lawfully and quietly hold, occupy and enjoy the
Premises (subject to the provisions of this Lease) during the term of this Lease
without hindrance or molestation by Landlord or by any person or persons
claiming under Landlord.

      SECTION 19.7 LANDLORD'S CONTINUING OBLIGATIONS. The term "Landlord," as
used in this Lease so far as covenants or obligations on the part of Landlord
are concerned, shall be limited to mean and include only the owner or owners at
the time in question of the fee of the Premises, and in the event of any
transfer or transfers or conveyance of such interest the grantor shall be
automatically freed and relieved from and after the date of such transfer or
conveyance of all liability as respects the performance of any covenants or
obligations on the part of Landlord contained in this Lease thereafter to be
performed that are assumed in writing by the transferee, provided that any funds
in the hands of such landlord or the then grantor at the time of such

                                       38
<PAGE>

transfer, in which Tenant has an interest, shall be deemed to have been turned
over to the grantee, and any amount then due and payable to Tenant by Landlord
or the then grantor under any provision of this Lease shall be paid to Tenant.
The covenants and obligations contained in this Lease on the part of Landlord
shall, subject to the aforesaid, be binding on Landlord's successors and
assigns, during and in respect of their respective successive periods of
ownership. Nothing herein contained shall be construed as releasing Landlord
from any obligation to complete the cure of any breach by Landlord during the
period of its ownership of the Premises.

      SECTION 19.8 ESTOPPEL. Landlord and Tenant shall, each without charge at
any time and from time to time, within ten (10) business days after written
request by the other party, certify by written instrument, duly executed,
acknowledged and delivered to any mortgagee, assignee of a mortgagee, proposed
mortgagee, or to any purchaser or proposed purchaser, or to any other person
dealing with Landlord, Tenant or the Premises:

      (a)   That this Lease (and all guaranties, if any) is unmodified and in
            full force and effect (or, if there have been modifications, that
            the same is in full force and effect, as modified, and stating the
            modifications);

      (b)   The dates to which the Basic Rent or Additional Rent have been paid
            in advance;

      (c)   Whether or not there are then existing any breaches or defaults by
            such party or the other party known by such party under any of the
            covenants, conditions, provisions, terms or agreements of this
            Lease, and specifying such breach or default, if any, or any setoffs
            or defenses against the enforcement of any covenant, condition,
            provision, term or agreement of this Lease (or of any guaranties)
            upon the part of Landlord or Tenant (or any guarantor), as the case
            may be, to be performed or complied with (and, if so, specifying the
            same and the steps being taken to remedy the same); and

      (d)   Such other statements or certificates as to factual matters as the
            recipient may reasonably request.

      It is the intention of the parties hereto that any statement delivered
pursuant to this Section 19.8 may be relied upon by any of such parties dealing
with Landlord, Tenant or the Premises. If Tenant does not deliver such statement
to Landlord within such ten (10) business day period, Landlord, and any
prospective purchaser or encumbrancer of the Premises or the Building, may
conclusively presume and rely upon the following facts: (i) that the terms and
provisions of this Lease have not been changed except as otherwise represented
by Landlord in the draft estoppel delivered to the Tenant for execution; (ii)
that this Lease has not been canceled or terminated and is in full force and
effect, except as otherwise represented by Landlord in the draft estoppel
delivered to the Tenant for execution; that the current amounts of the Basic
Rent and Security Deposit are as represented by Landlord in the draft estoppel
delivered to the Tenant for execution; that there have been no subleases or
assignments of the Lease; (iii) that not more than one month's Basic Rent or
other charges have been paid in advance; and (iv) that to Tenant's knowledge,
Landlord is not in default under the Lease. In such event, Tenant shall be
estopped from denying the truth of such facts.

                                       39
<PAGE>

      SECTION 19.9 RULES AND REGULATIONS. Tenant shall perform, observe and
comply with all reasonable nondiscriminatory rules and regulations established
by Landlord for the Park from time to time, including the Rules and Regulations
attached hereby as EXHIBIT E.

      SECTION 19.10 MEMORANDUM OF LEASE. Upon not less than ten (10) business
days prior written request by either party, the parties hereto agree to execute
and deliver to each other a Memorandum Lease, in recordable form, setting forth
(a) the date of this Lease; (b) the parties to this Lease; (c) the term of this
Lease; (d) the legal description of the Premises; and (e) such other matters
reasonably requested by Landlord to be stated therein. Landlord shall ensure
that any previously recorded memorandum of lease is released of record.

      SECTION 19.11 SEVERABILITY. If any covenant, condition, provision, term or
agreement of this Lease shall, to any extent, be held invalid or unenforceable,
the remaining covenants, conditions, provisions, terms and agreements of this
Lease shall not be affected thereby, but each covenant, condition, provision,
term or agreement of this Lease shall be valid and in force to the fullest
extent permitted by law. This Lease shall be construed and be enforceable in
accordance with the laws of the state in which the Premises are located.

      SECTION 19.12 SUCCESSORS AND ASSIGNS. The covenants and agreements herein
contained shall bind and inure to the benefit of Landlord, its successors and
assigns, and Tenant and its permitted successors and assigns.

      SECTION 19.13 CAPTIONS. The caption of each article of this Lease is for
convenience and reference only, and in no way defines, limits or describes the
scope or intent of such article or of this Lease.

      SECTION 19.14 RELATIONSHIP OF PARTIES. This Lease does not create the
relationship of principal and agent, or of partnership, joint venture, or of any
association or relationship between Landlord and Tenant, the sole relationship
between Landlord and Tenant being that of landlord and tenant.

      SECTION 19.15 ENTIRE AGREEMENT. All preliminary and contemporaneous
negotiations are merged into and incorporated in this Lease. This Lease together
with the Exhibits contains the entire agreement between the parties and shall
not be modified or amended in any manner except by an instrument in writing
executed by the parties hereto.

      SECTION 19.16 NO MERGER. There shall be no merger of this Lease or the
leasehold estate created by this Lease with any other estate or interest in the
Premises by reason of the fact that the same person, firm, corporation or other
entity may acquire, hold or own directly or indirectly, (a) this Lease or the
leasehold interest created by this Lease or any interest therein, and (b) any
such other estate or interest in the Premises, or any portion thereof. No such
merger shall occur unless and until all persons, firms, corporations or other
entities having an interest (including a security interest) in (1) this Lease or
the leasehold estate created thereby, and (2) any such other estate or interest
in the Premises, or any portion thereof, shall join in a written instrument
expressly effecting such merger and shall duly record the same.

                                       40
<PAGE>

      SECTION 19.17 POSSESSION AND USE. Tenant acknowledges that the Premises
are the property of Landlord and that Tenant has only the right to possession
and use thereof upon the covenants, conditions, provisions, terms and agreements
set forth in this Lease. This Lease does not create any rights to light or air
by means of openings in the walls of the Building, any rights or interests in
the parking facilities or other Common Areas, or any other rights, easements or
licenses, by implication or otherwise, except as expressly set forth in this
Lease. In particular, Landlord retains possession and control of the exterior of
the Building, including without limitation the roof, with is not included as
part of the Premises provided that Landlord shall not install or permit the
installation of any equipment on the roof after the date hereof that interferes
with any equipment in the Premises without Tenant's consent.

      SECTION 19.18 NO SURRENDER DURING LEASE TERM. No surrender to Landlord of
this Lease or of the Premises, or any portion thereof, or any interest therein,
prior to the expiration of the term of this Lease shall be valid or effective
unless agreed to and accepted in writing by Landlord and consented to in writing
by all mortgagees, and no act or omission by Landlord or any representative or
agent of Landlord, other than such a written acceptance by Landlord consented to
by all contract vendors and the mortgagees, as aforesaid, shall constitute an
acceptance of any such surrender.

      SECTION 19.19 SURRENDER OF PREMISES. At the expiration of the term of this
Lease, Tenant shall surrender the Premises in the same condition as the same
were in upon delivery of possession thereto at the Commencement Date of the term
of this Lease, reasonable wear and tear, alterations permitted hereunder and
damage by casualty excepted, and shall surrender all keys to the Premises to
Landlord at the place then fixed for the payment of Basic Rent and shall inform
Landlord of all combinations on locks, safes and vaults, if any. In particular,
upon expiration or termination of the Lease, Tenant will not sever, remove,
damage or destroy any of the computer and telecommunication lines, wires and
cables installed in the Premises unless expressly requested to do so by
Landlord. Tenant shall at such time remove all of its property therefrom and all
alterations and improvements placed thereon by Tenant, if so requested by
Landlord pursuant to Section 18.1. Tenant shall repair any damage to the
Premises caused by such removal, and any and all such property not so removed
shall, at Landlord's option, become the exclusive property of Landlord or be
disposed of by Landlord, at Tenant's cost and expense, without further notice to
or demand upon Tenant. If the Premises be not surrendered as above set forth,
Tenant shall indemnify, defend and hold Landlord harmless against loss or
liability resulting from the delay by Tenant in so surrendering the Premises,
including, without limitation any claim made by any succeeding occupant founded
on such delay. Tenant's obligation to observe or perform this covenant shall
survive the expiration or other termination of this Lease.

      All property of Tenant not removed within 30 days after the last day of
the term of this Lease shall be deemed abandoned. Tenant hereby appoints
Landlord its agent to remove all property of Tenant from the Premises upon
termination of this Lease and to cause its transportation and storage for
Tenant's benefit, all at the sole cost and risk of Tenant and Landlord shall not
be liable for damage, theft, misappropriation or loss thereof and Landlord shall
not be liable in any manner in respect thereto. Tenant shall pay all costs and
expenses of such removal, transportation and storage. Tenant shall reimburse
Landlord upon demand for any expenses incurred by Landlord

                                       41
<PAGE>

with respect to removal or storage of abandoned property and with respect to
restoring said Premises to good order, condition and repair.

      SECTION 19.20 HOLDING OVER. In the event Tenant remains in possession of
the Premises after expiration of this Lease, and without the execution of a new
lease, it shall be deemed to be occupying the Premises as a tenant from month to
month, subject to all the provisions, conditions and obligations of this Lease
insofar as the same can be applicable to a month-to-month tenancy, except that
the Basic Rent shall be escalated to one hundred fifty percent (150%) of the
then current Basic Rent for the Premises.

      SECTION 19.21 APPROVALS. Any approval by Landlord or Landlord's architects
and/or engineers of any of Tenant's drawings, plans and specifications which are
prepared in connection with any construction of improvements respecting the
Premises shall not in any way be construed or operate to bind Landlord or to
constitute a representation or warranty of Landlord as to the adequacy or
sufficiency of such drawings, plans and specifications, or the improvements to
which they relate, for any reason, purpose or condition, but such approval shall
merely be the consent of Landlord, as may be required hereunder, in connection
with Tenant's construction of improvements relating to the Premises in
accordance with such drawings, plans and specifications. Unless a party's
consent or approval is permitted by the express terms of this Lease to be
withheld in such party's sole discretion, such approval or consent may not be
unreasonably withheld, delayed or conditioned by such party.

      SECTION 19.22 SURVIVAL. All obligations (together with interest or money
obligations at the Maximum Rate of Interest) accruing prior to expiration of the
term of this Lease shall survive the expiration or other termination of this
Lease.

      SECTION 19.23 ATTORNEYS' FEES. In the event of any litigation between the
parties hereto, declaratory or otherwise, in connection with or arising out of
this Lease, the prevailing party on each issue in dispute shall recover from the
nonprevailing party all actual costs, actual damages and actual expenses,
including attorneys' fees, paralegal fees and other professional fees expended
or incurred in connection therewith as set by the trial court, including for
appeals, which shall be determined and fixed by the court as part of the
judgment. Tenant shall also indemnify Landlord against and hold Landlord
harmless from all costs, expenses, demands and liability incurred by Landlord if
Landlord becomes or is made a party to any claim or action (a) instituted by
Tenant, or by any third party against Tenant; (b) for foreclosure of any lien
for labor or material furnished to or for Tenant or such other person; (c)
otherwise arising out of or resulting from any act or transaction of Tenant or
such other person; or (d) necessary to protect Landlord's interest under this
Lease in a bankruptcy proceeding or other proceeding under Title 11 of the
United States Code, as amended. Tenant shall defend Landlord against any such
claim or action at Tenant's expense.

      SECTION 19.24 LANDLORD'S LIMITED LIABILITY. It is expressly understood and
agreed by and between the parties hereto, anything herein to the contrary
notwithstanding, that each and all of the representations, covenants,
undertakings and agreements herein made on the part of Landlord are intended not
as personal representations, covenants, undertakings and agreements of the
members, managers, shareholders, partners, trustees, directors, officers,
employees and

                                       42
<PAGE>

agents of Landlord, but are made and intended for the purpose of binding only
Landlord's interest in the Building and underlying land and the proceeds and
income therefrom and any insurance maintained therefor by Landlord. No personal
liability or personal responsibility is assumed by, nor shall at any time be
asserted or enforced against, any of the members, managers, shareholders,
partners, trustees, directors, officers, employees or agents of Landlord on
account of this Lease, on account of any covenant, undertaking or agreements in
this Lease contained (either expressed or implied), all such personal liability,
if any, being expressly waived and released by Tenant herein, and by all persons
claiming by, through or under Tenant. If Landlord shall fail to perform any
covenant, term or condition of this Lease upon Landlord's part to be performed,
and if as a consequence of such default Tenant shall recover a money judgment
against Landlord, such judgment shall be satisfied only out of the proceeds of
sale received upon execution of such judgment and levied thereon against the
right, title and interest of Landlord in the Building and underlying land and
the proceeds and income therefrom and any insurance maintained therefor by
Landlord, and neither Landlord nor its members, managers, shareholders,
partners, trustees, directors, officers, employees or agents nor any other
person or entity owning any interest in or affiliated with Landlord shall be
liable for any deficiency. The term "Landlord," as used in this Lease so far as
covenants or obligations on the part of Landlord are concerned, shall be limited
to mean and include only the owner or owners at the time in question of the fee
of the Building and underlying land, and in the event of any transfer or
transfers or conveyance the then grantor shall be automatically freed and
relieved from and after the date of such transfer or conveyance of all liability
as respects the performance of any covenants or obligations on the part of
Landlord contained in this Lease thereafter to be performed provided such
obligations are assumed by Landlord's successor. The covenants and obligations
contained this Lease on the part of Landlord shall, subject to the aforesaid, be
binding on Landlord's successors and assigns, during and in respect of their
respective successive periods of ownership. Any claim which Tenant may have
against Landlord for default in performance of any of the obligations herein
contained to be kept and performed by Landlord shall be deemed waived as to the
transferor unless suit be brought thereon within eighteen (18) months of
Landlord's sale or conveyance of its interest in the Building and underlying
land.

      SECTION 19.25 BROKER. Tenant represents that Tenant has dealt directly
only with Pacific Real Estate Partners, Inc. (the "Tenant's Brokers"), as
broker, in connection with this Lease and that insofar as Tenant knows, no other
broker, on behalf of Tenant, negotiated or participated in negotiations of this
Lease or submitted or showed the Premises or is entitled to any commission in
connection therewith. Landlord represents that Landlord has dealt directly only
with Fazekas Retail Group, as broker, in connection with this Lease, and that
insofar as Landlord knows, no other broker, on behalf of Landlord, negotiated or
participated in negotiations of this Lease or submitted or showed the Premises
or is entitled to any commission in connection therewith. Landlord and Tenant
agree that no broker, including the Tenant's Brokers and Fazekas Retail Group,
shall be entitled to any commission in connection with the Renewal Term, as such
term is hereinafter defined, or any expansion of the Premises. Tenant shall
defend, indemnify and hold harmless Landlord from and against any and all claims
of brokers, finders or any like third party claiming any right to commission or
compensation by or through acts of Tenant in connection herewith other than the
Tenant's Brokers. Landlord shall be responsible for payment of a commission to
Fazekas Retail Group and shall cause Fazekas Retail Group to share its
commission with Tenant's Brokers, all such payments to be made in accordance
with written

                                       43
<PAGE>

agreements between Landlord and Fazekas Retail Group or Tenant's Brokers, and
shall defend, indemnify and hold harmless Tenant from and against any and all
claims of brokers, finders or any like third party claiming any right to
commission or compensation by or through acts of Landlord in connection
herewith.

      SECTION 19.26 PREPARATION OF LEASE; GOVERNING LAW. Landlord and Tenant
have negotiated this Lease, have had an opportunity to be advised by legal
counsel respecting the provisions contained herein and have had the right to
approve each and every provision hereof; therefore, this Lease shall not be
construed against either Landlord or Tenant as a result of the preparation of
this Lease by or on behalf of either party. This Lease shall be governed by the
laws of the State of Washington. All covenants, conditions and agreements of
Tenant arising hereunder shall be performable in the county wherein the Premises
are located. Any suit arising from or relating to this Lease shall be brought in
the county wherein the Premises are located, and the parties hereto waive the
right to be sued elsewhere.

      SECTION 19.27 JOINT AND SEVERAL LIABILITY. All parties signing this Lease
as Tenant shall be jointly and severally liable for all obligations of Tenant.

      SECTION 19.28 TIME IS OF THE ESSENCE. Time is of the essence with respect
to the performance of every provision of this Lease.

      SECTION 19.29 WORDS AND PHRASES. Words and phrases used in the singular
shall be deemed to include the plural and vice versa, and nouns and pronouns
used in any particular gender shall be deemed to include any other gender.
Captions or headings throughout this Lease and the table of contents are
inserted only as a matter of convenience and are not to be given any effect
whatsoever in construing this Lease. Whenever locative adverbs, such as
"herein," "hereunder," etc., are used herein, they shall mean and refer to this
Lease in its entirety and not to any specific Section, paragraph or other part
of this Lease. "Business day" means days when national banks are open in
Seattle, Washington.

      SECTION 19.30 PRIOR AGREEMENTS. This Lease, together with the exhibits
attached hereto and the written agreements executed and/or delivered pursuant
hereto and/or executed and agreed to by Landlord and Tenant in connection
herewith, embody the entire agreement between the parties relating to the
subject matter hereof, and supersede all prior agreements and understandings
between the Landlord and Tenant, if any, relating to the subject matter hereof.

      SECTION 19.31 NO ORAL AMENDMENTS. This Lease can only be modified or
amended by an agreement in writing signed by the parties hereto. Except as
required by applicable law, no receipt of money by Landlord from Tenant or any
other person after termination of this Lease or after the service of any notice
or after the commencement of any suit, or after final judgment for possession of
the Premises, shall reinstate, continue or extend the Term of this Lease or
affect any such notice, demand or suit, or imply consent for any action for
which Landlord's consent is required, unless specifically agreed to in writing
by Landlord. Any amounts received by Landlord may be allocated to any specific
amounts due from Tenant to Landlord as Landlord determines.

                                       44
<PAGE>

      SECTION 19.32 TENANT DEFINED. The word "Tenant" as used in this Lease
shall mean each and every person, partnership or corporation who is mentioned as
Tenant herein or who executes this Lease as Tenant. If there shall be more than
one Tenant, they shall all be bound jointly and severally by the terms,
covenants and agreements herein.

      SECTION 19.33 AT&T WIRELESS COMMUNICATIONS EQUIPMENT. Tenant agrees that
Landlord or its tenant, AT&T Wireless, may install, maintain, repair, replace,
improve, alter and operate the cellular communications equipment and associated
lines and facilities currently located in and on the Building (collectively, the
"Antenna Equipment"). Landlord or AT&T Wireless shall have 24 hours, 7 days per
week access in and on the Building and Premises to service, maintain, repair,
replace and operate the Antenna Equipment, including without limitation access
to the common telephone data room within the interior of the Premises that
contains some of the Antenna Equipment; provided, however, that (i) AT&T
Wireless shall comply with all of Tenant's rules, regulations and procedures
with respect to security and safety and all of Tenant's requirements to maintain
the integrity of the manufacturing process, and (ii) AT&T Wireless shall only
have access to those areas absolutely necessary to get from the main entrance of
the Premises to the Antenna Equipment, and shall have no access to any other
portion of the Premises at any time or for any reason. In connection with the
foregoing, Landlord and AT&T, as applicable, shall take all reasonable steps to
minimize the interference with and disruption of Tenant's business activities in
the Premises. Tenant acknowledges that Landlord has granted AT&T Wireless use of
a portion of the Premises for the Antenna Equipment pursuant to that Option and
Lease Agreement dated December 27, 2000, as amended, between Landlord and AT&T
Wireless.

      SECTION 19.34 PERSONAL PROPERTY. Pursuant to the Termination Agreement
referenced in Section 19.35, certain furniture, fixtures, equipment and personal
property described in the Termination Agreement (collectively, the "Personalty")
is being abandoned by the prior tenant of the Premises and shall remain in the
Premises for the use of the Tenant during the Term. Tenant agrees to maintain,
repair and replace all such Personalty in good working order and condition
during the Term, except that Tenant may dispose of certain items of the
Personalty without the prior consent of Landlord if the cost of each item when
new is less than $1,000 and the aggregate cost for the Term of all such
Personalty when new is less than $20,000 (but in no event shall the work
stations, Cisco routers or building fixtures or "infrastructure" be subject to
disposal). All Personalty is being provided to Tenant in its "As Is" condition
without any representation or warranty of any kind whatsoever, including without
limitation its condition, suitability or usefulness for Tenant. Tenant shall
surrender the Premises and all Personalty (and any replacements thereto) to
Landlord upon the expiration or termination of this Lease in good working order
and condition (except that Tenant may deliver items of Personalty in the same
condition as received if any items were not received in good working order and
condition), ordinary wear and tear excepted.

      SECTION 19.35 EFFECTIVENESS OF LEASE. The effectiveness of this Lease is
conditioned upon (i) the payment by Tenant to Landlord of the Basic Rent for
January 2005 pursuant to Section 2.2, (ii) the delivery by Tenant to Landlord of
the Letter of Credit described in Section 2.6, (iii) the execution and delivery
by all parties of a termination agreement (the "Termination Agreement")
providing for, among other terms, the termination of that Net Lease

                                       45
<PAGE>

Agreement dated October 31, 1995, as amended, among Landlord and AAS, Inc.
covering the Premises, which Termination Agreement shall be on terms and
conditions acceptable to Landlord in its sole and arbitrary discretion, (iv) the
payment and performance of all obligations under the Termination Agreement that
are due to be paid or performed by any party thereunder concurrently with the
execution of the Termination Agreement, and (v) the execution and delivery to
Landlord of a guaranty of Tenant's obligations under this Lease by Three Five
Systems, Inc., a Delaware corporation, in the form attached hereto as EXHIBIT G.
If all of the foregoing conditions are not satisfied on or before December 31,
2004, this Lease shall automatically terminate and neither party shall have any
further obligation or liability hereunder.

                        (Signatures follow on next page).

                                       46
<PAGE>

      IN WITNESS WHEREOF, each of the parties hereto has caused this Lease to be
duly executed as of the day and year first above written.

                             LANDLORD:

                             L & A KESSLER FAMILY PARTNERS, L.P.,
                             a California limited partnership

                             By: /s/ Randall E. Kessler
                                 -----------------------------------------------
                                 Printed Name: Randall E. Kessler
                                 Title: General Partner

                             ___________________________________________________
                             MARILYN DREYFUSS, as Trustee of the Edward S. Ageno
                             1992 Revocable Trust

                             /s/ Phillip Francis
                             ---------------------------------------------------
                             PHILLIP FRANCIS, as Trustee of the Edward S. Ageno
                             1992 Revocable Trust

                             /s/ Curtis Burr
                             ---------------------------------------------------
                             CURTIS BURR, as Trustee of the Edward S. Ageno 1992
                             Revocable Trust

                             KAY ENTERPRISES,
                             a California general partnership

                             By: /s/ Randall E. Kessler
                                 -----------------------------------------------
                                 Printed Name: Randall E. Kessler
                                 Title: Managing General Partner

                                       47

<PAGE>

                                   TENANT:

                                   TFS ELECTRONIC   MANUFACTURING   SYSTEMS,
                                   INC., a Delaware corporation

                                   By: /s/ David Prunier
                                       -------------------------------------
                                       Printed Name: David Prunier
                                       Title: General Manager

                                       48

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