Document:

ROYAL BANK
                                                       OF CANADA

                                                       U.S.A. Headquarters
                                                       1 Liberty Plaza
                                                       New York, N.Y. 10006-1404

                                                       Tel.:  (212) 428-6200

                                                         as of December 22, 1999

Genlyte Thomas Group Nova Scotia ULC
4360 Brownsboro Road, Suite 300
P.O. Box 35120
Louisville, KY 40232
         Attention: Mr. Terry Lange

Ladies and Gentlemen:

         Royal Bank of Canada (the "BANK") is pleased to offer to Genlyte Thomas
Group Nova Scotia ULC (the  "BORROWER")  on the terms and  conditions  set forth
herein an  Advance  (as  defined  below) in  Canadian  or U.S.  Dollars  (as the
Borrower shall request) in a principal amount not to exceed  C$10,000,000 or the
Equivalent  Amount  (as  defined  below)  in U.S.  Dollars.  Defined  terms  not
otherwise  defined in this letter  agreement  (the  "AGREEMENT")  shall have the
meanings provided in Annex A attached hereto and made a part hereof.

1.       THE ADVANCE

         (a) Upon  satisfaction  of the  conditions  below,  Borrower  may, upon
notice as set forth  below,  request,  on or after  December  22, 1999, a single
advance  hereunder  in such  currency as Borrower  shall  request  (which may be
either  Canadian  Dollars  or  U.S.   Dollars)  for  an  amount  not  to  exceed
C$10,000,000  or the  Equivalent  Amount in U.S.  Dollars  (the  "ADVANCE").  As
between Canadian and U.S.  Dollars,  the currency in which the Advance is funded
is the  "CURRENCY"  and the  currency  in which the Advance is not funded is the
"OTHER  CURRENCY." There shall be no conversion of the Advance from the Currency
to the Other Currency during the term of this Agreement.

         (b) The  interest  rate  basis  for the  Advance  may be  converted  or
continued  from time to time based on Libor or the Prime Rate  applicable to the
Currency.  At such time as interest is based on the  applicable  Libor rate, the
Advance  shall be referred to as the Libor Advance and, at such time as interest
is based on the  applicable  Prime Rate, the Advance shall be referred to as the
Prime Rate Advance;  PROVIDED,  HOWEVER, any such characterization  shall always
constitute but one and the same Advance  hereunder in the Currency.  If Libor is
selected and no Interest  Period is  specified,  Borrower will be deemed to have

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Genlyte Thomas Group Nova Scotia ULC                                      Page 2
December 22, 1999

requested  an  Interest  Period  of one  month.  If no  interest  rate  basis is
specified,  Borrower will be deemed to have requested a Prime Rate Advance.  The
principal  amount of the  Advance  at any time that it shall be a Libor  Advance
shall be no less than  C$500,000 or larger whole  multiples of C$100,000 for the
Advance  in  Canadian  Dollars  and  US$500,000  or larger  whole  multiples  of
US$100,000 for the Advance in U.S. Dollars.

2.       PURPOSE

         Borrower  will use the  Advance to repay a portion of one or more loans
made by the Toronto Dominion Bank to Borrower, originally for the purpose of the
acquisition by Borrower of Ledalite Architectural Products Inc.

3.       AVAILABILITY

         The  Advance  shall be drawn on a Business  Day (as  defined  below) no
later  than  December  31,  1999 and shall  mature on the date which is 364 days
thereafter  (the  "MATURITY  DATE"),  unless  otherwise  extended  at  the  sole
discretion of Bank, as herein provided.

4.       NOTICE OF BORROWING OR CONVERSION

         Notice of the date on which the  Advance  shall be made,  the  Currency
requested,  the amount to be borrowed,  the  interest  rate basis and, for Libor
Advance,  the Interest Period,  shall be given by Borrower to Bank in accordance
with the  applicable  provisions  of Schedule A attached  hereto and made a part
hereof.  Conversions to a different  interest rate basis may be made upon notice
as provided in such Schedule;  PROVIDED,  HOWEVER, in no case shall any Interest
Period extend beyond the Maturity Date.

5.       REPAYMENT

         The  Advance  shall be  payable  in  full,  together  with all  accrued
interest  thereon  not  previously  paid  and any  other  fees or  expenses  due
hereunder on the Maturity  Date.  All amounts  payable and due from the Borrower
pursuant to this Agreement  shall be paid in immediately  available funds in the
Currency.  If a day on which an amount is due is not a Business Day, such amount
shall be deemed for all purposes of this  Agreement to be due on next  following
Business Day unless such next  following  Business  Day is in the next  calendar
month  in  which  event  such  amount  shall  be due on the  Business  Day  next
preceding,  and all  interest  and other fees  shall  continue  to accrue  until
payment.  Interest and fees payable under this Agreement are payable both before
and after any or all of default, demand and judgment.

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December 22, 1999

6.       INTEREST RATES AND FEES

         (a)      The following rates of interest and fees shall apply:

                  (1)      For the Advance in Canadian Dollars:

                  Prime Advance     -       RBP
                  Libor Advance     -       Canadian Libor + 0.50% per annum

                  (2)      For the Advance in U.S. Dollars:

                  Prime Advance     -       RBUSBR
                  Libor Advance     -       U.S. Libor + 0.50% per annum

         (b)      Upon Borrower's  acceptance of this Agreement,  Borrower shall
                  pay Bank an arrangement fee of Cdn$25,000.

         (c)      If  Borrower  shall  request an  extension  of the  Advance in
                  accordance  with  Section 13 hereof  and if Bank,  in its sole
                  discretion,  shall agree to such an extension, then, on and at
                  the effective  date of such  extension,  Borrower shall pay to
                  Bank an extension fee of Cdn$10,000.

7.       INTEREST PAYMENT AND CALCULATION

         (a)      PRIME ADVANCE

         Interest on the Prime  Advance will accrue daily on the basis of a year
of 365 days and will be calculated,  payable and compounded  monthly on such day
of the month as the Bank shall  specify.  Any  change in RBP or RBUSBR  shall be
effective as of the opening of business on the day such change takes place.

         (b)      LIBOR ADVANCE

         For the  Libor  Advance,  interest  or  fees,  as  applicable,  will be
calculated and payable in the manner set forth in Schedule A attached hereto and
made a part hereof.

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December 22, 1999

         (c)      INTEREST ACT (CANADA)

         The annual rates of interest or fees to which the rates  calculated  in
accordance  with this  Agreement  are  equivalent  are the  rates so  calculated
multiplied  by the  actual  number of days in the  calendar  year in which  such
calculation  is made and  divided  by 365 or, in the case of the Libor  Advance,
360. In no event will interest  exceed the rate permitted by law.  Interest will
be  calculated  on the basis of a 365-day  year and  actual  days  elapsed,  and
payable  quarterly  in arrears on the last  Business  Day of each  March,  June,
September and December  following  the Advance,  and on the Maturity  Date.  The
annual rates of interest to which the rates  calculated in accordance  with this
Agreement are equivalent,  are the rates so calculated  multiplied by the actual
number  of days in the  calendar  year in  which  such  calculation  is made and
divided by 365. The Borrower shall not be obligated to pay any interest under or
in connection with this letter agreement to the extent such interest exceeds the
effective annual rate of interest on the credit advanced hereunder that would be
lawfully  permitted  under the  CRIMINAL  CODE.  For  purposes of this  section,
"interest" and "credit advanced" have the meanings ascribed to such terms in the
CRIMINAL  CODE  (Canada) and the  "effective  annual rate of interest"  shall be
calculated  in  accordance  with  generally  accepted  actuarial  practices  and
principles.

8.       PREPAYMENT

         The  Advance  may be prepaid in whole or in part upon five days'  prior
written notice to Bank; PROVIDED, HOWEVER, that the Libor Advance may be prepaid
only on an Interest  Payment Date and the Borrower shall compensate Bank for all
losses,  expenses  and  liabilities  which Bank may sustain as the result of any
prepayment.  Each prepayment shall be accompanied by payment of interest accrued
on the amount prepaid to the date of prepayment and shall be made in immediately
available  funds in the Currency.  Any portion of the Advance prepaid may not be
reborrowed within the term hereof,  including for this purpose, any extension in
accordance  with the terms  hereof,  unless  the Bank shall  otherwise  agree in
writing.

9.       EVIDENCE OF INDEBTEDNESS

         (a) The Bank shall  maintain on its records,  accounts  evidencing  the
Borrower's  liability to the Bank in respect of principal of and interest on the
Advance and all other amounts  payable under this letter  agreement.  The Bank's
accounts  shall  constitute,  in the  absence of  manifest  error,  PRIMA  FACIE
evidence  of the  indebtedness  of the  Borrower  to the Bank  pursuant  to this
Agreement.

         (b) If the Advance is made in U.S. Dollars,  it shall be evidenced by a
promissory note of the Borrower in form and substance  satisfactory to the Bank,
in its sole discretion (the "Note").

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Genlyte Thomas Group Nova Scotia ULC                                      Page 5
December 22, 1999

10.      INDEMNIFICATION AND INCREASED COSTS

         (a) If any  payment of the Libor  Advance  occurs on a date that is not
the last day of the applicable Interest Period, whether because of acceleration,
mandatory prepayment or otherwise, or the Libor Advance is not made or converted
or  continued  on the date  specified  by the Borrower for any reason other than
default by the Bank,  the Borrower will  indemnify the Bank for any loss or cost
incurred by it resulting  therefrom,  including (but not limited to) any loss or
cost in  liquidating  or employing  deposits  acquired to fund or maintain  such
Libor Advance.  The Bank's  written  statement as to the amount of any such loss
(such  statement  to set forth in  reasonable  detail  the  manner in which such
amount was calculated) will be conclusive, absent manifest error.

         (b) If the  Bank's  cost  of  making  or  maintaining  the  Advance  is
increased, any amount received or receivable by the Bank hereunder is reduced or
the rate of return on the Bank's capital in respect of the Advance is reduced by
an amount deemed by the Bank to be material,  by reason of any tax not in effect
on the  date  hereof  (other  than  any  increase  in the rate of tax on the net
income,  gains  or  profits  of the  Bank),  any  reserve  or  capital  adequacy
requirement, liquidity ratio, special deposit requirement or otherwise, then the
Borrower  shall  either (i)  promptly pay the Bank,  on demand,  any  additional
amounts  necessary to compensate  the Bank for such  additional  cost or reduced
amount received or receivable or reduction in rate of return with respect to the
Advance  or (ii)  promptly  prepay  the  outstanding  amount of the  Advance  as
provided in this Agreement, together with such additional amounts for the period
up to such prepayment. The Bank's written statement as to the amount of any such
cost, loss or requirement  (such statement to set forth in reasonable detail the
manner in which such amount was calculated) will be conclusive,  absent manifest
error.

         (c) If the Bank  determines that the making or maintenance of the Libor
Advance would violate any applicable law, rule, regulation or directive, whether
or not having the force of law, or if the Bank  determines  that funds of a type
and maturity appropriate to match fund a requested conversion to or continuation
of the Libor  Advance  are not  available,  then the  availability  of the Libor
Advance shall be suspended and the Advance shall be converted to or continued as
the Prime Advance at the end of the then current  Interest Period therefor or at
such earlier time as may be required by  applicable  law,  rule,  regulation  or
directive.  The  Bank's  written  statement  as to  the  such  circumstances  or
requirements  (such  statement to set forth in  reasonable  detail the manner in
which such amount was calculated) will be conclusive, absent manifest error.

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Genlyte Thomas Group Nova Scotia ULC                                      Page 6
December 22, 1999

11.      TAXES

         Payments  of all amounts to the Bank  hereunder  shall be made free and
clear of, and  without  deduction  for,  any  present or future  taxes,  levies,
imposts,  duties or withholding charges imposed by any governmental authority in
any jurisdiction or political  subdivision or taxing authority therein( any such
taxes, levies, imposts, duties, withholding charges, collectively,  "TAXES"). If
any such Taxes,  withholdings or deductions are required by Applicable Law to be
made and are made, the Borrower shall, as a separate and independent obligation,
pay to the Bank all such  additional  amounts as shall fully  indemnify the Bank
from,  and hold the Bank  harmless  against,  any  such  Taxes,  withholding  or
deduction.

12.      LETTER OF CREDIT AND GUARANTY

         (a) Borrower shall provide an  Irrevocable  Standby Letter of Credit in
favor of Bank as the  beneficiary  thereof  for a face  amount  (the  "LETTER OF
CREDIT AMOUNT") at least equal to the Advance,  issued by a recognized financial
institution satisfactory to the Bank in its sole discretion, having a term of at
least 364-days from the date of the Advance with such provisions for renewal, if
any, as Bank may agree to (the "LETTER OF CREDIT").

         (b) The  Letter of Credit  may be issued in the  Currency  or the Other
Currency.

         (c) The Letter of Credit shall be in  substantially a form submitted to
the Bank for  approval  and  approved  by the  Bank,  in its sole  discretion  ,
executed  and  delivered  by the  issuing  bank on or  prior  to the date of the
Advance and shall be attached hereto and made a part hereof.

         (d) If the  Letter of Credit  is issued in the Other  Currency,  to the
extent,  if any that at any time the  Letter of  Credit  Amount is less than the
Equivalent  Amount of the Advance due to  fluctuations  in the exchange  rate by
which such equivalence is determined (a "DEFICIENCY"), upon demand by Bank:

             (1)  Borrower shall immediately prepay the Advance in the amount of
             such Deficiency;

             (2)  deposit  with  the  Bank  and  grant  to the  Bank a  security
             interest in cash  collateral  in the  Currency in the amount of the
             Deficiency; or

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Genlyte Thomas Group Nova Scotia ULC                                      Page 7
December 22, 1999

             (3) cause the Letter of Credit  immediately  to be increased in an
             amount at least equal to the  Deficiency  plus any such  additional
             amount  which Bank  shall  reasonably  request to cover  reasonably
             foreseeable  adverse  fluctuations in the exchange rate at the time
             of such  increase  and to avoid  the need for  subsequent  repeated
             increases.  (The Letter of Credit so increased  shall be the Letter
             of Credit  hereunder as and from the date of such  increase and any
             subsequent  Deficiency  in respect of such Letter of Credit  shall,
             accordingly, be subject to this Section 12.)

         (e)  Further  to  protect  Bank  against  any  such  adverse   currency
fluctuation,  Borrower shall cause Genlyte Thomas Group LLC (the "GUARANTOR") to
deliver to Bank,  and it shall be a condition to the  effectiveness  hereof that
the  Guarantor  shall so deliver,  concurrent  with the  execution  and delivery
hereof by Borrower,  a written  guaranty (the  "GUARANTY") in form and substance
satisfactory to Bank which  guarantees  payment of the Deficiency to the Bank by
the  Guarantor  on  the  date  of  any  drawing  under  the  Letter  of  Credit,
notwithstanding  whether Bank shall have made any demand upon Borrower  pursuant
to paragraph (d) preceding.

13.      EXTENSION

         (a) Upon written notice from Borrower to Bank, received no earlier than
60 days and no later  than 30 days  prior to the  Maturity  Date,  Borrower  may
request an extension of the Advance (in the Currency only) for another period of
364-days and,  PROVIDED no Event of Default or default which, with notice or the
lapse of time would become an Event of Default,  shall then have occurred and be
continuing,  if the Bank in its sole discretion agrees to such an extension, the
extended  Maturity  Date shall be the date  which is 364 days from the  Maturity
Date  in  effect  prior  to  such  extension,  subject  to the  payment  of such
administrative  fees and expenses as Bank may require.  For the avoidance of all
doubt, it is hereby confirmed, acknowledged and agreed by Borrower that the Bank
shall have entire and sole  discretion at the time of any  extension  request as
provided  herein  to  agree  or not to agree  to such  extension  and upon  such
additional or different  terms and  conditions as Bank may deem  appropriate  at
such time and under such circumstances, notwithstanding anything to the contrary
herein or otherwise.

         (b) Any extended  Maturity Date may be extended for a further period of
364 days upon the  Borrower's  request,  subject to the  conditions set forth in
paragraph  (a)  preceding,  if the Bank,  in its sole  discretion,  shall agree;
PROVIDED,  HOWEVER,  that no such  extended  Maturity Date shall be later than 6
days prior to the anniversary of the initial Maturity Date in the year 2004.

         (c) Not in derogation but in furtherance of the Bank's sole  discretion
to agree to any such  extension,  no such  extension  shall be made unless there
shall be a Letter of Credit  in an  amount  and for a term at least  coextensive
with such extension.

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Genlyte Thomas Group Nova Scotia ULC                                      Page 8
December 22, 1999

         (d) At the initial  Maturity Date provided herein and on every Maturity
Date as extended hereunder,  the entire Advance shall be due and payable in full
together with accrued  interest,  fees and any other expenses  hereunder  unless
extended;  PROVIDED, if the Bank shall agree to any such extension,  there shall
be a mandatory prepayment on the Maturity Date prior to extension, in the amount
which is the lesser of the amount set forth below for such Maturity Date and the
entire amount then outstanding and due, as a condition to any such extension:

                           Maturity Date 2000:       C$  500,000
                           Maturity Date 2001:       C$1,000,000
                           Maturity Date 2002:       C$1,500,000
                           Maturity Date 2003:       C$2,000,000
                           Maturity Date 2004:       C$5,000,000

14.      CONDITIONS PRECEDENT

         The  Bank's  obligation  to fund the  Advance is subject at the time of
such funding to the following conditions:

         (a)      The Bank shall have received:

                  (1) This Agreement and, if the Advance is requested to be made
         in U.S.  Dollars,  the  Note,  each  duly  executed  and  delivered  by
         Borrower,  and the Letter of Credit in form and substance  satisfactory
         to the Bank,  duly  executed  by an  authorized  officer  of the issuer
         thereof;

                  (2)  The   Guaranty,   duly  executed  and  delivered  by  the
         Guarantor;

                  (3)  Certified  copies of Board  resolutions  authorizing  the
         Borrower's   borrowing  hereunder  and  the  execution,   delivery  and
         performance  of this  Agreement  and the Note,  if any,  and  certified
         copies  of  Board   resolutions  of  the  Guarantor   authorizing   the
         Guarantor's Guaranty as provided herein and therein;

                  (4)  Incumbency  certificates  showing  the names,  titles and
         signatures of the Borrower's officers authorized to execute and deliver
         this  Agreement and the Note, if any, and otherwise to act with respect
         to this  Agreement  and the Note, if any, and  incumbency  certificates
         showing  the  names,  titles and  signatures  of  Guarantor's  officers
         authorized to execute and deliver the Guaranty;

                  (5)  An  opinion  of  counsel  to the  Borrower,  in form  and
         substance satisfactory to the Bank;

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Genlyte Thomas Group Nova Scotia ULC                                      Page 9
December 22, 1999

                  (6)  A  copy  of  the  Genlyte  Group  Incorporated  financial
         statements  for the latest fiscal  quarter and related  Genlyte  Thomas
         Group LLC attachments, accompanied by a compliance certificate from the
         Chief Financial Officer of Genlyte Thomas Group LLC confirming that all
         terms and conditions are in compliance with the Credit  Agreement dated
         August 30,  1998 by and among  Genlyte  Thomas  Group LLC and the Banks
         named  therein  and  Bank  of  America   National   Trust  and  Savings
         Association,  as Agent  and  Issuing  Bank  (as  amended,  modified  or
         supplemented);

                  (7)  A copy of the latest  Forms 10-Q and 10-K for The Genlyte
         Group Incorporated and Thomas Industries Inc., respectively;

                  (8)  Such other documents, instruments, opinions or assurances
         as the Bank may require; and

                  (9) Payment of the  administrative fee provided herein and all
         legal expenses  incurred by the Bank in connection with this Agreement,
         the Note,  if any,  the Letter of Credit,  the  Guaranty or any related
         matters contemplated hereby.

         (b) At the time the Borrower  requests the Advance,  upon acceptance of
the  proceeds  and after giving  effect  thereto,  there shall exist no Event of
Default (as specified below) and no condition or event that, with or without the
giving of notice or lapse of time or both, would become an Event of Default, and
all  representations  and warranties  made herein shall be true and correct with
the same effect as though made on and as of such date.

15.      REPRESENTATIONS AND WARRANTIES

         The Borrower represents and warrants to the Bank as of the date hereof,
the date on  which  the  Advance  is made,  any  date on which an  extension  is
requested hereunder and any date on which such extension is made, that:

         (a) Borrower is a corporation, duly incorporated and organized, validly
existing  and in good  standing  under  the laws of Nova  Scotia,  has  adequate
corporate  power and  authority to carry on its business,  own property,  borrow
monies and enter into agreements  therefor,  executed and deliver this Agreement
and any other document or instrument required hereunder or contemplated  hereby,
observe and perform the terms and  conditions  of this  Agreement and that it is
duly registered or qualified to carry on business in all jurisdictions where the
nature  of its  properties,  assets  or  business  makes  such  registration  or
qualification necessary or desirable.

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Genlyte Thomas Group Nova Scotia ULC                                     Page 10
December 22, 1999

         (b) The execution, delivery and performance of this Agreement have been
duly authorized by all necessary actions,  this Agreement has been duly executed
by Borrower and such execution, delivery and performance do not and will not (i)
violate  any law,  regulation  or rule by which it is bound,  (ii)  violate  any
provision of its charter  documents,  by-laws or any shareholders'  agreement to
which it is  subject,  (iii)  contravene  or result in a breach of, or a default
under,  any agreement or instrument to which it is a party or by which it or any
of its  properties  or assets  may be bound or  affected  or (iv)  result in the
creation of any encumbrance on any of its properties or assets.

         (c) Subject   to   applicable   bankruptcy,   insolvency,   moratorium,
reorganization and other similar laws affecting creditors' rights generally, and
to the equitable and statutory powers of courts to stay proceedings  before them
and to stay the  execution of  judgments,  this  Agreement  constitutes a legal,
valid and binding obligation of the Borrower, enforceable in accordance with its
terms.

         (d) The most  recent  audited,  consolidated  financial  statements  of
Borrower and Genlyte  Thomas Group LLC  delivered to the Bank fairly  present in
conformity  with GAAP the  consolidated  financial  position of the Borrower and
Genlyte Thomas Group LLC as of the date thereof and the consolidated  results of
operations  and cash flows for the fiscal year  covered  thereby,  and since the
date of such financial  statements there has occurred no material adverse change
in the business or financial  condition of the Borrower or Genlyte  Thomas Group
LLC.

         (e) Borrower  is in  compliance  in  every  material  respect  with all
Applicable Laws, including, without limitation, all Environmental Laws and there
are no actions,  suits or  proceedings,  initiated  or  threatened,  against the
Borrower  and its  subsidiaries,  before any court or  administrative  agency or
otherwise  which would result in any material  adverse  effect on the  property,
assets, financial condition and business or operations of the Borrower.

         (f) No event has occurred  which  constitutes,  or which with giving of
notice,  lapse of time or other condition would  constitute,  a default having a
material  adverse effect on the financial  condition of the Borrower under or in
respect of any  agreement,  undertaking or instrument to which the Borrower is a
party or to  which  the  Borrower  or any of its  properties  or  assets  may be
subject.

         (g) All  material  authorizations,   approvals,   consents,   licenses,
exemptions,  filings,  registrations,  notarizations  and other  requirements of
governmental,  judicial and public bodies and  authorities  required to carry on
Borrower's   business   have  been  obtained  or  effected  and  will,  as  such
requirements  arise in the future,  be obtained and effected and are or will be,
respectively, in full force and effect.

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Genlyte Thomas Group Nova Scotia ULC                                     Page 11
December 22, 1999

         (h) All  payments  required  to be made by  Borrower  to any  taxing or
regulating  governmental  authority in respect of taxes, fees, licenses or other
payments have been paid and there are no outstanding  arrears.  Without limiting
the foregoing,  all employee  deductions  (including income taxes,  unemployment
insurance and Canada Pension Plan), sales taxes (provincial,  state or federal),
corporate  income  taxes  in  any  jurisdiction,   payroll  taxes  and  worker's
compensation are fully and currently paid.

         (i) All remittances required to be made by the Borrower to any federal,
provincial or state and municipal  governments  have been made, are currently up
to date and there are no outstanding  arrears.  Without  limiting the foregoing,
all employee  deductions  (including income taxes,  unemployment,  insurance and
Canada  Pension  Plan,  sales taxes  (provincial,  state or federal),  corporate
income taxes, payroll taxes and worker's  compensation amounts due are currently
paid and up to date.

         (j) The  Borrower  and  Genlyte  Thomas  Group  LLC have used and shall
continue to use  commercially  reasonable  practices and judgment to ensure that
the Borrower's  products,  business systems and revenue  generating systems (the
"SYSTEMS")  are "Year 2000  Compliant" as defined  below.  Upon request by Bank,
Borrower shall provide  documentation  relating to or evidencing  such Year 2000
Compliance.  The Borrower and Genlyte Thomas Group LLC have each taken, and will
continue to take as necessary, reasonable steps to ensure to the satisfaction of
each that third party suppliers, subcontractors, or Agents of either of them are
Year 2000 Compliant.  "YEAR 2000 COMPLIANT" or "YEAR 2000 COMPLIANCE"  means the
Systems will process,  calculate,  accept,  maintain, store and produce date and
time data and data dependent thereon accurately and without delay,  interruption
or error at all times from,  the date of this  Agreement  forward for so long as
this  Agreement  shall be in effect,  including  without  limitation,  for dates
before, on and after January 1, 2000, including leap year calculations, and will
function  accurately and with out interruption at all times before, on and after
January 1, 2000 (including through February 29, 2000) without any adverse change
in operations associated with the advent of the year 2000.

16.      COVENANTS

         The Borrower  agrees that,  until all obligations to the Bank hereunder
are paid in full, the Borrower will:

         (a) Pay when due all amounts owing under this Agreement.

<PAGE>

Genlyte Thomas Group Nova Scotia ULC                                     Page 12
December 22, 1999

         (b) Furnish to the Bank not later than 120 days after the close of each
of its fiscal  years,  and within 60 days of the close of each  fiscal  quarter,
copies  of  annual  audited  and  quarterly  audited,   consolidated   financial
statements  for such period and related  Genlyte  Thomas Group LLC  attachments,
prepared in accordance with generally accepted accounting  principles,  reported
on by the Borrower's  independent certified public accountants,  together with a
compliance  certificate  from the Chief  Financial  Officer  confirming that all
terms and conditions are in compliance  with this Agreement and that no even has
occurred  that is, or with the passing of time may  become,  an Event of Default
hereunder or a default under any other agreement.

         (c) Provide the Bank with any  information and financial data as it may
reasonably request from time to time.

         (d) Promptly  give  notice  to the  Borrower  of the  existence  of any
condition or the occurrence of any event or act that, with or without the giving
of notice or lapse of time, or both, would constitute an Event of Default.

         (e) In the event,  after the date hereof,  Borrower grants any security
interest,  or otherwise pledges,  assigns or transfers property or rights in any
of its assets as security to, or agrees to  covenants or pricing more  favorable
than provided herein with, any other lender or secured creditor,  grant, pledge,
assign or transfer an  interest  in such  property or rights or in property  and
rights  equivalent  in value at such time to such property and rights (up to the
U.S.  Dollar  Equivalent  Amount of the obligations of Borrower  hereunder),  or
otherwise amend this Agreement to provide for covenants or pricing,  in any case
ranking at least equal and PARI PASSU to such  interests  in favor of such other
lenders or secured creditors.

17.      EVENTS OF DEFAULT

         If any of the following events occurs:

         (a) any  principal  (including  any  prepayment)  of the  Advance,  any
interest on the Advance,  or any other amount due hereunder is not paid when due
and such failure continues for three Business Days;

         (b) the Borrower  defaults in the due  performance or observance of any
other term,  covenant or  agreement  to be performed or observed by it contained
herein and such  default,  if capable of cure,  is not cured  within 30 Business
Days after the Borrower's receipt of notice thereof;

<PAGE>

Genlyte Thomas Group Nova Scotia ULC                                     Page 13
December 22, 1999

         (c) any  representation  made herein or in any document or financial or
other statement  delivered in connection  herewith proves to have been incorrect
or  misleading  in any  material  respect as of the date at which it was made or
deemed to be made and such representation shall be material at the time it shall
have been determined to have been false or incorrect; or

         (d) any default or similar event occurs or condition  exists that would
permit and in fact causes the Bank to declare  immediately  due and payable,  or
the Borrower or the Guarantor  fails to pay at its stated  maturity,  any amount
owed to the Bank by the Borrower or the Guarantor under any other loan or credit
agreement;

         (e) the  Letter of Credit is  terminated  or the  rating of the  issuer
thereof changes unfavorably, in the Bank's opinion, or the Guaranty ceases to be
in full force and effect,  enforceable in accordance  with its terms against the
Guarantor;

         (f) Borrower  (i) has an order for relief  entered  with  respect to it
under Canadian or United States  bankruptcy  laws or any other law,  domestic or
foreign,  relating to  bankruptcy,  insolvency  or  reorganization  or relief of
debtors as now or hereafter in effect,  (ii) makes an assignment for the benefit
of creditors,  (iii)  applies for,  seeks,  consents to, or  acquiesces  in, the
appointment of a receiver,  custodian,  trustee, examiner, liquidator or similar
official  for it or any  material  part of its  property,  (iv)  institutes  any
proceeding  seeking  an  order  for  relief  under  Canadian  or  United  States
bankruptcy  laws as now or  hereafter  in effect or seeking to  adjudicate  it a
bankrupt or insolvent,  or seeking  dissolution,  winding up,  disestablishment,
liquidation, reorganization, arrangement, adjustment or composition of it or its
debts or  suspension  of its  general  operations  under  any law,  domestic  or
foreign,  relating to  bankruptcy,  insolvency  or  reorganization  or relief of
debtors  or fails to file an  answer  or other  pleading  denying  the  material
allegations  of any such  proceeding  filed  against  it, (v) takes any  company
action to  authorize  or effect any of the  foregoing  actions set forth in this
paragraph (e); (vi) fails to contest in good faith any appointment or proceeding
described in the  following  paragraph  (f); or (vii) does not pay, or admits in
writing its inability to pay, its debts generally as they become due;

         (g) without  application,  approval  or  consent  of  the  Borrower,  a
receiver, trustee, examiner, liquidator or similar official is appointed for the
Borrower or any material part of its property,  or a proceeding described in the
preceding  paragraph  (f)  is  be  instituted  against  the  Borrower  and  such
appointment  continues  undischarged or such proceeding  continues without being
dismissed or is unstayed for a period of 60 consecutive days; or

         (h) any court,  government or governmental  agency condemns,  seizes or
otherwise  appropriates,  or takes custody or control of, all or any substantial
portion of the property of the Borrower;

<PAGE>

Genlyte Thomas Group Nova Scotia ULC                                     Page 14
December 22, 1999

then, at any time during the existence of such event, the Bank may, by notice to
the  Borrower  or,  in the case of  events  under  paragraphs  (f),  (g) or (h),
automatically without notice, terminate the Agreement and the obligations of the
Bank hereunder and/or declare the Advance and all other amounts owing under this
Agreement  to be  immediately  due  and  payable  without  presentment,  demand,
protest, or other notice of any kind, all of which are hereby expressly waived.

18.      NOTICES

         Except as otherwise specified herein, all notices, requests, demands or
other  communications  to or upon  the  respective  parties  hereto  shall be in
writing and shall be deemed to have been duly given or made five  Business  Days
after being mailed (by registered or certified mail,  return receipt  requested)
or when delivered by hand or overnight courier or by telefax, such telefax to be
telephonically  confirmed  by the  sender,  to the party to which  such  notice,
request,  demand or other  communication is required or permitted to be given or
made under this  letter  agreement,  addressed  to such party at its  address or
telefax number set forth on Annex B attached hereto and made a part hereof or at
such other address or telefax  number as such party may  hereafter  specify by a
notice to the other party.

19.      NO WAIVER; NO ORAL MODIFICATIONS

         (a) No  failure  or delay on the part of Bank in  exercising  any right
hereunder or under the Guaranty,  and no course of dealing  between the Borrower
and the Bank, shall operate as a waiver thereof; nor shall any single or partial
exercise of any right  hereunder  or under the  Guaranty  preclude  any other or
further  exercise  thereof  or the  exercise  of any other  right  hereunder  or
thereunder.  The rights and  remedies  herein  provided are  cumulative  and not
exclusive of any rights or remedies that the Bank would otherwise have.

         (b) This  Agreement  may  not  be  amended,  supplemented,   waived  or
otherwise modified orally.

20.      BINDING EFFECT

         (a) This  Agreement  shall be binding  upon and inure to the benefit of
the  parties  hereto and their  respective  successors  and  assigns;  PROVIDED,
HOWEVER,  that the  Borrower  may not  assign or  transfer  any of its rights or
obligations hereunder without the prior written consent of the Bank.

<PAGE>

Genlyte Thomas Group Nova Scotia ULC                                     Page 15
December 22, 1999

         (b) Bank may sell, assign, transfer,  negotiate or otherwise dispose of
its rights  hereunder (a) with the prior written consent of the Borrower,  which
consent shall not be unreasonably  withheld or delayed,  to a Canadian financial
institution,  or (b) without any such  consent,  to a Canadian  affiliate of the
Bank;  PROVIDED,  the  consent  of the  Borrower  under  clause (i) shall not be
required if an Event of Default shall have occurred and be continuing.

21.      EXPENSES

         The Borrower shall pay on demand all out-of-pocket  expenses (including
fees and  disbursements  of counsel)  reasonably  incurred by Bank in connection
with the preparation of this Agreement,  the Letter of Credit, the Guaranty, any
promissory  note made  hereunder  or any other  document,  instrument  or action
arising hereunder or contemplated  hereby,  and the preservation and enforcement
of Bank's rights hereunder.

22.      CURRENCY

         The Currency in which the Advance is funded,  whether  Cdn.  Dollars or
U.S.  Dollars is of the essence.  The obligations of Borrower  hereunder  shall,
notwithstanding  any payment in any currency  other than the  Currency  (whether
pursuant to judgment or award or otherwise), be discharged only to the extent of
the amount of the Currency that the Bank may, in accordance  with normal banking
procedures,  purchase and receive with the sum paid in such different  currency,
including  without  limitation,  the Other  Currency  (including any premium and
costs of exchange) on the Business Day  immediately  following  the day on which
the Bank receives such payment in such  different  currency.  If the  conversion
rate  actually  applied  differs  from the rate of exchange  prevailing  on such
Business Day and, as a result,  the amount of the  Currency so  purchased  falls
short of the amount  originally due in the Currency,  the Borrower agrees to pay
such additional amount in the Currency as may be necessary to indemnify the Bank
against such shortfall  (and if the amount of the Currency so purchased  exceeds
the amount  originally  due, the excess shall be refunded to the Borrower).  Any
obligation  not  discharged  by such  payment  shall  be due as a  separate  and
independent  obligation and, until discharged as provided in this Section, shall
continue in full force and effect.  No such obligation  shall be affected by any
judgment being obtained for any amount due under or in respect of this Agreement
or by any time or indulgence granted to the Borrower from time to time.

23.      GOVERNING LAW

         This  Agreement  shall be governed by and construed in accordance  with
the law of the State of New York.

<PAGE>

Genlyte Thomas Group Nova Scotia ULC                                     Page 16
December 22, 1999

24.      SUBMISSION TO JURISDICTION.

         FOR  PURPOSES  OF  ANY  SUIT,  ACTION  OR  PROCEEDING   INVOLVING  THIS
AGREEMENT,  ANY NOTE OR ANY OTHER DOCUMENT OR INSTRUMENT  CONTEMPLATED HEREBY OR
REQUIRED HEREUNDER OR ANY JUDGMENT ENTERED BY ANY COURT IN RESPECT OF SUCH SUIT,
ACTION OR  PROCEEDING,  THE  BORROWER  EXPRESSLY  SUBMITS  TO THE  NON-EXCLUSIVE
JURISDICTION  OF ANY STATE OR U.S.  FEDERAL  COURT  SITTING  IN THE  BOROUGH  OF
MANHATTAN  IN THE CITY OF NEW YORK AND AGREES  THAT ANY ORDER,  PROCESS OR OTHER
PAPER  MAY  BE  SERVED  UPON  THE  BORROWER   WITHIN  OR  WITHOUT  SUCH  COURT'S
JURISDICTION  BY MAILING A COPY TO THE  BORROWER AT THE  BORROWER'S  ADDRESS FOR
NOTICES  PROVIDED  IN  THIS  AGREEMENT,  PROVIDED  THAT A  REASONABLE  TIME  FOR
APPEARANCE IS ALLOWED.  THE BORROWER IRREVOCABLY WAIVES ANY OBJECTION IT MAY NOW
OR  HEREAFTER  HAVE TO THE  LAYING  OF VENUE OF ANY SUIT,  ACTION OF  PROCEEDING
ARISING  OUT OF OR  RELATING  TO THIS  AGREEMENT  OR ANY OTHER  CREDIT  DOCUMENT
BROUGHT IN ANY SUCH COURT AND FURTHER IRREVOCABLY WAIVES ANY CLAIM THAT ANY SUCH
SUIT,  ACTION OR  PROCEEDING  BROUGHT IN ANY SUCH  COURT HAS BEEN  BROUGHT IN AN
INCONVENIENT  FORUM.  NOTHING  CONTAINED  IN THIS  AGREEMENT OR ANY OTHER CREDIT
DOCUMENT  SHALL  AFFECT THE  BANK'S  RIGHT TO SERVE  LEGAL  PROCESS IN ANY OTHER
MANNER  PERMITTED  BY LAW OR TO BRING  ANY  ACTION  OR  PROCEEDING  AGAINST  THE
BORROWER OR THE BORROWER'S PROPERTY IN THE COURTS OF OTHER JURISDICTIONS.

25.      WAIVER OF JURY TRIAL.

         THE  BORROWER   AND  THE  BANK  HEREBY   KNOWINGLY,   VOLUNTARILY   AND
INTENTIONALLY  WAIVE  ANY  RIGHT  TO TRIAL  BY JURY IN ANY  JUDICIAL  PROCEEDING
INVOLVING,  DIRECTLY  OR  INDIRECTLY,  ANY  MATTER  (WHETHER  SOUNDING  IN TORT,
CONTRACT OR OTHERWISE) IN ANY WAY ARISING OUT OF,  RELATED TO OR CONNECTED  WITH
ANY CREDIT DOCUMENT OR THE  RELATIONSHIP  ESTABLISHED  THEREUNDER AND AGREE THAT
ANY SUCH PROCEEDING SHALL BE TRIED BEFORE A JUDGE SITTING WITHOUT A JURY.

<PAGE>

Genlyte Thomas Group Nova Scotia ULC                                     Page 17
December 22, 1999

26.      SEVERABILITY

         If  any  provision  of  this  Agreement  is or  becomes  prohibited  or
unenforceable in any jurisdiction,  such prohibition or  unenforceability  shall
not  invalidate or render  unenforceable  the  provision  concerned in any other
jurisdiction  nor invalidate,  affect or impair any of the remaining  provisions
hereof.

27.      WHOLE AGREEMENT

         This Agreement and any agreements  delivered pursuant to or referred to
in this Agreement  constitute the whole and entire agreement between the parties
in respect hereof.

         If you  agree to all of the  terms and  conditions  set  forth  herein,
please  accept and agree by signing in the place  provided  below and return one
original to the attention of the undersigned.  This offer is open for acceptance
until the  conclusion  of two weeks from the date hereof and if not  accepted by
the  execution  and  delivery  hereof by such date,  shall expire as of close of
business on such date.

                                               Yours truly,

                                               ROYAL BANK OF CANADA

                                               By
                                                   Name: N.G. Millar
                                                   Title: Senior Manager

Accepted and agreed, this 22nd day of December   , 1999:
                          ----        -----------

GENLYTE THOMAS GROUP
NOVA SCOTIA ULC

By   W.G. FERKO
     ---------------------------
         Name:  William G. Ferko
         Title:  Vice President

By   T.L. LANGE
     ---------------------------
         Name:  Terry  Lange
         Title:  Treasurer

<PAGE>

                                                                         Annex A

                                   DEFINITIONS

"APPLICABLE  LAW" means,  in respect of any  Person,  property,  transaction  or
event, all present or future applicable laws, statutes,  regulations,  treaties,
judgments  and  decrees  and  (whether  or not  having  the  force  of law)  all
applicable official directives,  rules, guidelines,  orders, by-laws, approvals,
permits,  consents and policies of any  governmental or regulatory  body,  stock
exchange or securities commission having jurisdiction.

"BUSINESS DAY" means a day, excluding  Saturday,  Sunday and any other day which
shall be in The City of New York or in The City of Toronto a legal  holiday or a
day on which  banking  institutions  are closed and means,  with  respect to the
Libor  Advance,  a  Business  Day which is also a day on which  dealings  in the
applicable currency, U.S. or Canadian, as the case may be by and between leading
banks in the London interbank market may be conducted.

"CANADIAN  DOLLARS"  and the symbols  "CDN$" and "$" each means  lawful money of
Canada.

"CANADIAN LIBOR" means, with respect to each Libor Interest Period applicable to
the Advance in Canadian  Dollars,  the annual rate of interest (rounded upwards,
if  necessary,  to the nearest  whole  multiple of one  sixteenth of one percent
(1/16th%)),  at which the Bank, in accordance with its normal practice, would be
prepared to offer to leading banks in the London interbank market (or such other
interbank market as Bank shall deem  appropriate  under the  circumstances)  for
delivery on the first day of such Libor  Interest  Period and for a period equal
to  such  Libor  Interest  Period,  deposits  in  Canadian  Dollars  of  amounts
comparable to such Libor Advance to be  outstanding  during such Libor  Interest
Period,  at or about 10:00 a.m.  (Toronto  time) on the  Interest  Determination
Date.

"CONTAMINANT" includes, without limitation, any pollutant,  dangerous substance,
liquid waste,  industrial  waste,  hazardous  material,  hazardous  substance or
contaminant including any of the foregoing as defined in any Environmental Law.

"ENVIRONMENTAL  ACTIVITY" means any past,  present or future activity,  event or
circumstance in respect of a Contaminant,  including,  without  limitation,  its
storage,  use,  holding,   collection,   purchase,   accumulation,   assessment,
generation,  manufacture,  construction,  processing, treatment,  stabilization,
disposition,  handling or  transportation,  or its  Release,  escape,  leaching,
dispersal  or migration  into the natural  environment,  including  the movement
through or in the air, soil, surface water or groundwater.

"ENVIRONMENTAL  LAW"  means  any  and  all  applicable  international,  federal,
provincial,  state,  municipal or local laws, statutes,  regulations,  treaties,
orders,  judgments,   decrees,   ordinances  and  official  directives  and  all
authorizations  relating to the environment,  occupational  health and safety or
any Environmental Activity.

<PAGE>

                                                                             A-2

"EQUIVALENT  AMOUNT"  means,  with  respect to any amount of the Currency or the
Other Currency, the amount of, respectively,  the Other Currency or the Currency
required to purchase that amount of the first  currency  through the Bank at the
Bank's  noon spot rate in either  New York City or  Toronto  as  applicable,  in
accordance with normal banking procedures.

"GAAP" means  generally  accepted  accounting  principles in effect from time to
time in Canada applied in a consistent manner from period to period.

"INTEREST  DETERMINATION DATE" means, with respect to a Libor Advance,  the date
which is 2  Business  Days prior to the first day of the Libor  Interest  Period
applicable to such Libor Advance.

"INDEBTEDNESS"  means,  (a)  indebtedness for borrowed money or for the deferred
purchase  price  of  goods  or  services  (including  trade  obligations),   (b)
obligations  under leases which are or should be reported,  in  accordance  with
generally  accepted  accounting  principles,  as capital leases, (c) obligations
under  letters of credit or  guarantee,  whether  issued for the  benefit of the
Borrower  or another or others,  (d)  obligations  arising  pursuant to bankers'
acceptance facilities, and (e) obligations under guarantees, endorsements (other
than for  collection  or deposit in the ordinary  course of business)  and other
obligations to purchase, provide funds for payment, provide funds for investment
in  or  otherwise   provide   financial   assistance  to  any  other  party  but
"INDEBTEDNESS" does not include deferred taxes.

"LIBOR" means, as applicable, Canadian Libor or U.S. Libor.

"LIBOR INTEREST DATE" means, with respect to the Libor Advance,  the last day of
each Libor Interest Period and, if the Borrower  selects a Libor Interest Period
longer than 3 months,  the Libor Interest Date shall be the date falling every 3
months after the beginning of such Libor Interest Period as well as the last day
of such Libor Interest Period.

"LIBOR INTEREST  PERIOD" means,  with respect to any Libor Advance,  a period of
one, two, three or six months as selected by Borrower,  subject to availability,
commencing  with the date on which such Libor Advance is made or converted  from
the Prime  Advance,  or the last day of the  immediately  prior  Libor  Interest
Period.

"PERSON"  means  any  individual,  firm,  partnership,   company,   corporation,
government, governmental body or agency, instrumentality and unincorporated body
of persons or association.

"RELEASE" includes discharge, spray, inject, inoculate, abandon, deposit, spill,
leak, seep, pour, emit, empty, throw, dump, place and exhaust,  and when used as
a noun has a similar meaning.

<PAGE>

                                                                             A-3

"RBP" and "ROYAL BANK PRIME" each means,  with  respect to the Prime  Advance in
Canadian Dollars, the annual rate of interest announced by the Bank from time to
time as being a reference rate then in effect for determining  interest rates on
Canadian Dollar commercial loans made in Canada.

"RBUSBR"  and "ROYAL  BANK US BASE RATE" each means,  with  respect to the Prime
Advance in U.S. Dollars,  the annual rate of interest  determined by the Bank in
New York City from time to time as its prime rate then in effect for determining
interest rates on US Dollar commercial loans.

"US  DOLLARS,"  "U.S.  DOLLARS"  and "US$" each means lawful money of the United
States of America in immediately available funds.

"U.S. LIBOR" means, with respect to each Libor Interest Period applicable to the
Advance in U.S.  Dollars,  the annual  rate of  interest  (rounded  upwards,  if
necessary,  to the  nearest  whole  multiple  of one  sixteenth  of one  percent
(1/16th%)),  at which the Bank, in accordance with its normal practice, would be
prepared to offer to leading banks in the London  interbank  market for delivery
on the first day of such Libor  Interest  Period and for a period  equal to such
Libor  Interest  Period,  deposits in US Dollars of amounts  comparable  to such
Libor Advance to be outstanding  during such Libor Interest Period,  at or about
10:00 a.m. (New York City time) on the Interest Determination Date.

<PAGE>

                                                                         ANNEX B

                             ADMINISTRATIVE DETAILS

PAYMENTS TO BANK:    For U.S. Dollar payments:

                     Royal Bank of Canada

                     Grand Cayman (North America No. 1) Branch
                     c/o New York Branch
                     Attention:  Loans Administration
                     The Chase Manhattan Bank, New York

                     ABA # 021000021

                     Account of Royal Bank of Canada, New York

                     Account No.:  920-1-033363 for further credit to account
                     no. 218-599-9 (loans), Ref: Genlyte Thomas Group

                     For Canadian Dollar payments: as Bank shall advise Borrower
                     in writing prior to any such payment.

BORROWER'S ADDRESS
FOR NOTICES:         Genlyte Thomas Group Nova Scotia ULC
                     4360 Brownsboro Road, Suite 300
                     P.O. Box 35120
                     Louisville, KY 40232
                     Attention: Mr. Terry Lange
                     Telephone No.:
                     Facsimile No.:

BANK'S ADDRESS

FOR NOTICES:         Royal Bank of Canada

                     Grand Cayman (North America No.1) Branch
                     c/o New York Branch
                     One Liberty Plaza, 4th Floor
                     New York, New York  10006-1404
                     Attention: Linda Joannou
                     Telephone No.: (212) 428-6212
                     Facsimile No.:  (212) 428-2372
              with a copy to:  Royal Bank of Canada
                     One Liberty Plaza, 4th Floor
                     New York, New York  10006-1404
                     Attention: Mr. N. G. Millar, Senior Manager
                     Telefax No.:  (212) 428-6363
                     Telephone No.:  (212) 809-7148

<PAGE>

                                                                      Schedule A

NOTICE REQUIREMENTS FOR DRAWDOWN,
 CONVERSIONS OR CONTINUATIONS

THE PRIME ADVANCE

Borrower shall request the Prime Advance or conversion to Prime Advance by 10:00
AM (Toronto or New York City time,  as applicable to the Currency) on the day of
the Advance, conversion or continuation.

THE LIBOR ADVANCE

Borrower shall request the Libor Advance by 10:00 a.m. (Toronto or New York City
time, as applicable to the Currency) on the Interest Determination Date.

LIBOR ADVANCE CONDITIONS

The Borrower  may borrow by way of the Libor  Advance  subject to the  following
further conditions:

(a)  The Borrower may select the Libor Interest  Period  applicable to the Libor
     Advance and shall notify the Bank of such Libor Interest Period when giving
     notice pursuant to Schedule "A".

(b)  The  Borrower  shall pay  interest on the Libor  Advance in the Currency on
     each Libor Interest Date,  calculated in arrears. Such interest will accrue
     daily on the basis of the actual  number of days  elapsed and a year of 360
     days.EMPLOYMENT AGREEMENT

     THIS AGREEMENT is made and entered into by and between  CALIFORNIA  FEDERAL
BANK, A Federal Savings Bank (the "Company"),  having a business address at 135
Main  Street,  San  Francisco,  California,  94105,  and  GERALD  J.  FORD  (the
"Executive"),  having a mailing  address at  200  Crescent  Court,  Suite  1350,
Dallas, Texas 75201.

                                 R E C I T A L S

     The Board of Directors of the Company has determined that it is in the best
interests of the Company to retain the Executive's services and to reinforce and
encourage  the continued  attention  and  dedication of members of the Company's
management,   including  the  Executive,   to  their  assigned   duties  without
distraction in potentially disturbing circumstances arising from the possibility
of a change of control of the Company.

     The Company  wishes to assure  itself of the services of the  Executive for
the period  provided in this Agreement and the Executive  wishes to serve in the
employ of the Company on the terms and conditions hereinafter provided.

     This Agreement  supersedes and replaces (i) the employment agreement by and
between  the  Executive  and  the  Company  dated  as of  October  1,  1994,  as
subsequently  amended as of January 1, 1998 and (ii) the consulting agreement by
and between the  Executive  and First  Nationwide  Management  Corp.  (and their
respective assignees and successors) dated as of October 1, 1994 as subsequently
amended as of January 1, 1995, and December 17, 1997; such  agreements  shall be
terminated  upon the later of the effective  date of this Agreement or execution
of this Agreement.

                                A G R E E M E N T

     NOW,  THEREFORE,  in consideration of the premises and the mutual covenants
herein contained, the Company and the Executive hereby agree as follows:

     1.  Employment.  Upon the terms and subject to the conditions  contained in
this  Agreement,  the  Executive  agrees to provide  full-time  services for the
Company during the term of this  Agreement.  The Executive  agrees to devote his
best efforts to the business of the Company,  and shall  perform his duties in a
diligent,  trustworthy,  and  business-like  manner,  all  for  the  purpose  of
advancing  the business of the Company.  However,  the  Executive  may act as an
executor,  a trustee,  an officer  and/or  director  of  entities  with whom the
Executive has had a continuing  relationship  (including  Liberte' Investors) so
long  as  such  activities  do  not  interfere  in any  material  way  with  the
Executive's duties hereunder.

     2.  Duties;  Location.  The duties of the  Executive  shall be those duties
which can  reasonably  be expected to be performed by a person with the title of
Chief Executive  Officer and,  subject to the approval of the Board of Directors
of the Company,  as Chairman of the Board of the Company.  The  Executive  shall
report directly to the Board of Directors of the Company. The Executive's duties
may, from time to time, be changed or modified at the discretion of the Board of

                                       1

<PAGE>

Directors of the Company.  The duties to be performed under this Agreement shall
be performed primarily at the offices of the Company in Dallas,  Texas,  subject
to reasonable travel requirements on behalf of the Company.

     3.  Employment  Terms.  Subject  to the terms and  conditions  hereof,  the
Company  agrees to employ the Executive  for a term  commencing as of January 1,
2000 (the "Effective  Date") and continuing  through  December 31, 2002,  unless
renewed under this Section 3.

     Beginning  with  January 1, 2002,  this  Agreement  shall be  automatically
renewed  each  January 1 for one-year  terms,  unless  either the Company or the
Executive  provides  written  notice of election not to renew,  at least 45 days
before the applicable January 1.

     4.  Salary and Benefits.

          (a) Base Salary. The Company shall, during the term of this Agreement,
     pay the  Executive  an annual base salary of  $1,000,000  beginning  on the
     Effective Date, pro rated for periods of fewer than 12 months.  Such salary
     shall be paid in semi-monthly  installments less applicable withholding and
     salary deductions.  Base salary shall be reviewed at least annually and may
     be  increased  by the  Company.  The Company may not,  however,  reduce the
     Executive's base salary at any time during the term of this Agreement.

          (b) Executive  Compensation  Plans. The Executive shall be eligible to
     participate  in any executive  compensation  plan in which any other senior
     executive of the Company  participates;  such executive  compensation plans
     shall include  (without  limitation) the following  types of  compensation,
     incentives, and benefits: stock options,  restricted stock, annual bonuses,
     long term incentive compensation, and stock purchase.

          (c) Non-Qualified Retirement Plans. The Executive shall be entitled to
     participate in any non-qualified retirement plan that is generally provided
     to senior executive officers of the Company.

          (d) Fringe  Benefits.  The Executive shall be entitled to all benefits
     for which the Executive is eligible  under any qualified  retirement  plan,
     group insurance,  other welfare  benefits,  and all "fringe" benefits which
     the Company provides to its employees  generally or to senior executives of
     the Company (including executive medical benefits for the Executive and his
     dependents).

          (e) Medical  Examination.  The  Executive  shall be  reimbursed by the
     Company for the  reasonable  cost of one annual  medical  examination  upon
     presentation of an expense statement.

          (f) Paid Time Off.  The  Executive  shall be entitled to paid time off
     ("PTO")  during each full year of his  employment  hereunder in  accordance
     with the  applicable  policies  adopted by the  Company.  In no event shall
     Executive  be  entitled  to fewer

                                       2

<PAGE>

     than five weeks PTO during any  calendar  year.  Such PTO shall be taken at
     such times as are  consistent  with the  reasonable  business  needs of the
     Company.

          (g)  Automobile.  The  Company  will  provide  the  Executive  with an
     automobile (the  "Automobile")  for use by the Executive in connection with
     the  performance  of his duties under this  Agreement and the Company shall
     provide  garaging near the Executive's  office.  The Automobile  shall be a
     late model  top-of-the-line  luxury automobile to be reasonable selected by
     the  Executive.  The Executive may also use the  Automobile  for reasonable
     personal  use.  The  Executive  agrees  to pay all  operating  costs of the
     Automobile  and the Company  agrees to reimburse to the  Executive to cover
     operating costs of the Automobile (including insurance,  maintenance,  toll
     charges,  and rental of garage space), upon the submission by the Executive
     to the Company of  receipts  evidencing  such  operating  costs.  Except as
     otherwise  provided in Section 5 below,  the Executive agrees to return the
     Automobile  to the  Company at the  termination  of this  Agreement  or the
     Executive  may  purchase  the  Automobile  from  the  Company  as its  then
     wholesale  value.  The  Company  shall  also  provide  the  Executive  with
     comparable automobiles in San Francisco and southern California on the same
     terms.

          (h) Clubs. The Company will reimburse the Executive, upon presentation
     of  proper  expense  statements,  for all  reasonable  initiation  fees and
     periodic dues for  memberships  in golf,  country,  and social clubs of the
     Executive's choice.

          (i) Life  Insurance.  The Company shall  purchase a split dollar whole
     life  insurance  policy on the life of the  Executive  with an initial face
     amount of $3,000,000 (the "Policy"). The Policy shall be adjusted every two
     years on January 1 (with the first  adjustment  on  January 1, 2001)  based
     upon  increases in the  Executive's  base salary,  and such  adjusted  face
     amount shall be equal to (i) the  Executive's  base salary,  multiplied  by
     (ii)  three.  The Policy  shall be owned by a trust for the  benefit of the
     heirs of the Executive (the  "Trust").  The trustee of the Trust shall have
     the  right to  designate  one or more  beneficiaries,  and to  change  such
     designation at any time and from time to time, in accordance with the terms
     of the Trust and the  Policy.  The  Company  shall pay all  premiums on the
     Policy. The Trust and the Company shall have the rights and obligations set
     forth in the separate  split  dollar life  insurance  agreement  previously
     executed  with respect to the Policy,  as the same may be amended from time
     to time.  Such insurance  coverage shall be in addition to, and not in lieu
     of, any other insurance normally provided by the Company to officers of the
     Company. In the event the Executive's employment shall terminate (A) at any
     time during the term of this Agreement for any reason other than (i) death,
     (ii) termination for Cause, or (iii) voluntary termination by the Executive
     without Good Reason,  or (B) at the end of the term of this Agreement,  the
     split dollar life insurance  agreement  referred to herein shall  terminate
     and the Company shall release all of its rights with respect to the Policy,
     including its right to be repaid any amount,  its rights to any accumulated
     cash surrender  value in the Policy,  and its collateral  assignment of the
     Policy,  and the Trust shall own the Policy and the  Company  shall have no
     further interest or rights in the Policy.

          (j)  Reimbursement  of  Expenses.  The  Company  shall  reimburse  the
     Executive  for  all  reasonable  out-of-pocket  expenses  incurred  by  the
     Executive in the course of his

                                       3

<PAGE>

     duties, in accordance with normal policies.  The Company  acknowledges that
     the  Executive  shall be permitted to travel first class when  traveling on
     behalf of the Company.

          (k) Employee Benefits.  The Executive shall be entitled to participate
     in the employee  benefit programs  generally  available to employees of the
     Company,  and  to all  normal  perquisites  provided  to  senior  executive
     officers of the  Company.  Upon  termination  of this  Agreement  by normal
     expiration of its term as specified in Section 3 hereof, medical and dental
     benefits  provided to the Executive prior to termination  shall continue to
     be provided to the Executive for a period of three (3) years.

          (l) San Francisco and New York  Apartments.  The Company shall provide
     the  Executive  with access to, and use of, an apartment in San  Francisco,
     California  and in New York City, New York, at the Company's  expense,  for
     use by the Executive  when he is in such cities to perform his duties under
     this Agreement.

          (m) Office. The Company shall maintain (including the payment of rent,
     repairs,  utilities,  furnishings,  improvements,  insurance, and all other
     reasonable  ancillary costs) its offices at 200 Crescent Court, Suite 1350,
     Dallas,  Texas 75201, or such other comparable offices in the Dallas, Texas
     metropolitan area as are suitable to the conduct to its business.

          (n) Use of Corporate Aircraft. The Company shall provide the Executive
     with the use of a private corporate aircraft for his use.

          (o) Benefits  not in Lieu of  Compensation.  No benefit or  perquisite
     provided  to the  Executive  shall be deemed to be in lieu of base  salary,
     bonus, or other compensation.

     5.  Termination  of  Employment.  The Board of Directors of the Company may
terminate the  employment of the Executive at any time as it deems  appropriate.
Except as may otherwise be provided in Section 6 below, the following provisions
shall apply with respect to the termination of the Executive's employment.

          (a) Disability.  The Company may terminate the Executive's  employment
     for Disability if the Executive is incapacitated and absent from his duties
     hereunder on a full-time basis for six  consecutive  months or for at least
     180 days during any 12 month period. If, during the term of this Agreement,
     the  Executive's  employment  terminates due to  Disability,  the Executive
     shall be entitled to (i) receive  continued  payments in an amount equal to
     60% of the  Executive's  base  salary at the time of such  termination,  in
     accordance  with  Section 4 (a) above  during  the  remaining  term of this
     Agreement (as provided in Section 3 above) but for not less than two years,
     and (ii) continuation of group life insurance  benefits and continuation of
     benefits under Section 4(i). In addition, so long as such benefits continue
     to be provided to the Company's employees,  the Executive shall be entitled
     to  continuation  of benefits under the group medical  plan(s) in which the
     Executive  is  participating  at the  time of such  termination  (including
     executive  medical  benefits)  for  the  Executive,  his  spouse,  and  his
     dependents;  such medical  benefits  shall  terminate no later than

                                       4

<PAGE>

     (x) the date on which the Executive ceases to be Disabled,  or (y) the date
     on which the Executive attains age 70.

          (b) Voluntary  Resignation or Termination  for Cause. If the Executive
     shall voluntarily terminate his employment for other than Good Reason or if
     the Company shall  discharge the Executive for Cause,  this Agreement shall
     terminate  immediately and the Company shall have no further  obligation to
     make any payment under this Agreement which has not already become payable,
     but has not yet been  paid.  Provided,  however,  that with  respect to any
     stock options,  restricted stock,  incentive plans,  deferred  compensation
     arrangements,  or  other  plans  or  programs  in which  the  Executive  is
     participating at the time of termination of his employment, the Executive's
     rights and benefits  under each such plan shall be determined in accordance
     with the terms,  conditions,  and  limitations of the plan and any separate
     agreement executed by the Executive which may then be in effect.

          For the purposes of this Agreement,  the Company shall have "Cause" to
     terminate the  Executive's  employment  hereunder  upon (A) the willful and
     continued  failure by the  Executive to perform his duties with the Company
     (other than any such failure  resulting from  incapacity due to physical or
     mental illness), after a demand for substantial performance is delivered to
     the  Executive  by the Board which  specifically  identifies  the manner in
     which  the  Board  believes  that he has not  substantially  performed  his
     duties,  or (B) the willful  engaging by the Executive in gross  misconduct
     materially and demonstrably  injurious to the Company, or (C) occurrence of
     any event which  would  provide a basis of  termination  for cause under 12
     C.F.R.   Section   563.39(b)(1)  or  any  successor   regulation   defining
     termination  for cause in employment  agreements for employees of a savings
     association.  For purposes of this paragraph, no act, or failure to act, on
     the Executive's part shall be considered  "willful" unless done, or omitted
     to be done, by him not in good faith and without reasonable belief that his
     action  or  omission  was  not  in  the  best   interest  of  the  Company.
     Notwithstanding  the foregoing,  the Executive  shall not be deemed to have
     been  terminated for Cause unless and until there shall have been delivered
     to him a copy of a resolution duly adopted by the  affirmative  vote of not
     less than two-thirds (2/3) of the entire authorized membership of the Board
     at a meeting of the Board called and held for the purpose (after reasonable
     notice and an opportunity for the Executive,  together with counsel,  to be
     heard  before the  Board),  finding  that in the good faith  opinion of the
     Board he was guilty of conduct set forth above in clauses (A) or (B) of the
     first sentence of this paragraph and specifying the particulars  thereof in
     detail.

          For purposes of this Agreement, "Good Reason" shall mean:

               (i) Without his express  written  consent,  the assignment to the
          Executive  of any  duties  inconsistent  with his  positions,  duties,
          responsibilities  and  status  with the  Company,  or a change  in his
          reporting  responsibilities,  titles or offices, or any removal of the
          Executive from or any failure to re-elect the Executive to any of such
          positions, except in connection with the termination of his employment
          by the Company for Cause or as a result of the Executive's Disability,
          or as a result of his death,  or by the Executive  other than for Good
          Reason;

                                       5

<PAGE>

               (ii) A reduction by the Company in the Executive's base salary as
          in effect on the date hereof or as the same may be increased from time
          to time;

               (iii) The Company's  requiring the Executive to be based anywhere
          other than Dallas,  Texas, or, in the event the Executive  consents to
          any  relocation,  the failure by the Company to pay (or  reimburse the
          Executive) for all reasonable moving expenses incurred by him relating
          to a  change  of his  principal  residence  in  connection  with  such
          relocation and to indemnify the Executive against any loss (defined as
          the difference between the actual sale price of such residence and the
          higher of (a) his aggregate  investment  in such  residence of (b) the
          fair market  value of such  residence as  determined  by a real estate
          appraiser  designated by the Executive and reasonably  satisfactory to
          the  Company)  realized  on  the  sale  of the  Executive's  principal
          residence in connection with any such change of residence;

               (iv) The failure by the Company to continue in effect any benefit
          or  compensation  plan  (including but not limited to any stock option
          plan,  pension plan, life insurance plan,  health and accident plan or
          disability  plan) in which the  Executive is  participating  (or plans
          providing substantially similar benefits), the taking of any action by
          the Company which would adversely affect the Executive's participation
          in or  materially  reduce  his  benefits  under  any of such  plans or
          deprive  him of any  material  fringe  benefit  enjoyed by him, or the
          failure by the Company to provide the Executive with the number of PTO
          days to which he is then  entitled  on the  basis of years of  service
          with the Company in accordance with the Company's normal PTO policy in
          effect on the date hereof;

               (v) Any  failure of the Company to obtain the  assumption  of, or
          the  agreement  to  perform,   this  Agreement  by  any  successor  as
          contemplated in Section 17(a) hereof; or

               (vi) Any  purported  termination  of the  Executive's  employment
          which is not effected  pursuant to a notice of termination  satisfying
          the requirements of Section 5(b) above (and, if applicable,  Section 3
          above);  and  for  purposes  of  this  Agreement,  no  such  purported
          termination shall be effective.

          (c)  Termination  Without  Cause;  Resignation  for Good  Reason.  The
     Company  shall pay the  Executive  and  provide to the  Executive  (and his
     dependents,  where applicable),  the amounts and benefits set forth in this
     Section 5(c) if, during the term of this  Agreement,  either (x) prior to a
     Change of Control, the Executive's  employment is terminated by the Company
     without Cause or the Executive  voluntarily  terminates  his employment for
     Good  Reason,  or (y)  within 24  months  after a Change  of  Control,  the
     Executive's  employment is  terminated by the Company  without Cause or the
     Executive voluntarily terminates his employment for any reason:

               (i) The Company  shall pay the  Executive  in one lump sum within
          ten business days after  termination of his employment an amount equal
          to (i) the sum of

                                        6

<PAGE>

          his base salary as provided in Section 4(a) plus the Executive's Bonus
          Amount  (as  defined  below),   multiplied  by  (ii)  three  (3).  The
          Executive's  "Bonus  Amount"  shall be equal to the greater of (x) the
          Executive's   average  annual   incentive   bonus  earned  during  the
          performance  period  representing the three calendar years immediately
          preceding  the  year in  which he  terminates  employment,  or (y) the
          Executive's  target  annual  incentive  bonus for the year in which he
          terminates employment.

               (ii) The Company shall  maintain in full force and effect for the
          continued benefit of the Executive,  for a three-year period after the
          date of his  termination of employment  ("Date of  Termination"),  all
          employee  benefit  plans and  programs  or  arrangements  in which the
          Executive was entitled to participate immediately prior to the Date of
          Termination,  provided  that his continued  participation  is possible
          under the general terms and provisions of such plans and programs.  In
          the  event  that the  Executive's  participation  in any such  plan or
          program is barred,  the Company shall arrange to provide the Executive
          with benefits  substantially  similar to those which he is entitled to
          receive  under  such plans and  programs.  At the end of the period of
          coverage,  the Executive shall have the option to have assigned to him
          at no  cost  and  with  no  apportionment  of  prepaid  premiums,  any
          assignable   insurance  policy  owned  by  the  Company  and  relating
          specifically to him.

               (iii)  The  Executive  shall  be  entitled  to  the  use  of  the
          Automobile  until the earliest to occur of (x) the date the  Executive
          is  employed   elsewhere,   or  (y)  three  years  from  the  Date  of
          Termination;  provided,  however,  that during such time  period,  the
          Executive shall be solely responsible for all expenses incurred in the
          use of the  Automobile,  including  maintaining  insurance of the same
          types and at the same levels as  previously  maintained by the Company
          immediately prior to such termination.

               (iv) All  outstanding  but  unvested  stock  options,  restricted
          stock, SARs, deferred compensation,  and SERP payments shall, upon the
          Date of Termination, be accelerated, fully vested, and exercisable for
          three years after the Date of Termination; provided, however, that the
          foregoing shall not be construed to cause an "Incentive  Stock Option"
          to fail to meet  the  statutory  requirements  of  Section  422 of the
          Internal Revenue Code of 1986, as amended.  If any option,  restricted
          stock,  SAR, or other  benefit is governed by a plan which  limits the
          acceleration of vesting or extension of exercises rights,  the Company
          shall take all reasonable  action to comply with this subsection (iv),
          and, with respect to any such benefit the Company is unable to provide
          in  accordance  with this  subsection,  the  Company  shall pay to the
          Executive within thirty (30) days after the Date of Termination a lump
          sum amount  equal to the value of such  benefits  as  determined  by a
          third party appraiser acceptable to the Executive.

               (v)  The  Company  shall  provide  outplacement  services  to the
          Executive,  the scope and duration of which shall be at the discretion
          of the Executive.

                                       7

<PAGE>

          "Change of Control" means the occurrence of any of the following:

               (A) The  acquisition by any  individual,  entity or group (within
          the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange
          Act of 1934, as amended) (a "Person") of beneficial  ownership (within
          the meaning of Rule 13d-3  promulgated  under the Securities  Exchange
          Act  of  1934,   as  amended)   of  20%  or  more  of  either   (1)the
          then-outstanding  shares of common stock (the  "Outstanding GSB Common
          Stock") of GSB or (2)the combined voting power of the then-outstanding
          voting securities of GSB entitled to vote generally in the election of
          directors  (the  "Outstanding  GSB  Voting   Securities");   provided,
          however,   that  for  purposes  of  this  paragraph(A)  the  following
          acquisitions shall not constitute,  or be deemed to cause, a Change of
          Control  Event:  (i)any  increase in such  percentage  ownership  of a
          Person to 20% or more resulting  solely from any acquisition of shares
          directly  from GSB or any  acquisition  of  shares  by GSB,  provided,
          however,  that any  subsequent  acquisitions  of shares by such Person
          that would add, in the aggregate,  2% or more (measured as of the date
          of each  such  subsequent  acquisition)  to such  Person's  beneficial
          ownership of Outstanding  GSB Common Stock or  Outstanding  GSB Voting
          Securities  shall be deemed to  constitute a Change of Control  Event,
          (ii) any  acquisition by any employee  benefit plan (or related trust)
          sponsored or maintained by GSB or any  corporation  controlled by GSB;
          (iii)  any  acquisition  by  Ronald  O. Perelman, Gerald J. Ford or an
          entity controlled by either or both of them; or (iv)any acquisition by
          any corporation  pursuant to a transaction which complies with clauses
          (1), (2) and (3) of paragraph (C) below; or

               (B) Individuals who, as of the date hereof,  constitute the Board
          of Directors of GSB (the  "Incumbent  Board")  cease for any reason to
          constitute  at least a  majority  of the  Board of  Directors  of GSB;
          provided,  however, that any individual becoming a director subsequent
          to the date hereof whose election, or nomination for election by GSB's
          stockholders,  was  approved  by a vote of at least a majority  of the
          directors then  comprising the Incumbent  Board shall be considered as
          though  such  individual  were a member of the  Incumbent  Board,  but
          excluding,  for  this  purpose,  any  such  individual  whose  initial
          assumption  of office  occurs  as a result of an actual or  threatened
          election  contest with respect to the election or removal of directors
          or other actual or threatened  solicitation of proxies or consents, by
          or on behalf of a person other than the Board of Directors of GSB; or

               (C) Consummation of a reorganization, merger or consolidation, or
          sale or other disposition of all or substantially all of the assets of
          GSB (a "Business  Combination"),  in each case, unless, following such
          Business Combination,  (1) all or substantially all of the individuals
          and entities who were the beneficial owners, respectively, of the then
          Outstanding GSB Common Stock and  Outstanding  GSB Voting  Securities,
          immediately  prior  to such  Business  Combination  beneficially  own,
          directly  or  indirectly,   more  than  50%  of,   respectively,   the
          then-outstanding  shares of common stock and the combined voting power
          of the  then-outstanding  voting securities entitled to vote generally
          in the election of directors,  as the case may be,

                                       8

<PAGE>

          of  the   corporation   resulting   from  such  Business   Combination
          (including,  without  limitation,  a corporation  which as a result of
          such transaction owns GSB or all or substantially  all of GSB's assets
          either directly or through one or more  subsidiaries) in substantially
          the same  proportions as their  ownership,  immediately  prior to such
          Business   Combination  of  the   Outstanding  GSB  Common  Stock  and
          Outstanding GSB Voting  Securities,  as the case may be, (2) no Person
          (excluding any corporation resulting from such Business Combination or
          any  employee  benefit  plan  (or  related  trust)  of GSB or of  such
          corporation  resulting  from such Business  Combination)  beneficially
          owns,  directly  or  indirectly,  20% or more  of,  respectively,  the
          then-outstanding  shares of common stock of the corporation  resulting
          from such  Business  Combination  or the combined  voting power of the
          then-outstanding  voting securities of such corporation  except to the
          extent that such ownership  existed prior to the Business  Combination
          and  (3)  individuals  who  were  on  the  Incumbent  board  cease  to
          constitute  at  least  a  majority  of the  members  of the  board  of
          directors of the corporation  resulting from the Business Combination;
          provided,  however, that any individual becoming a director subsequent
          to the date hereof whose election, or nomination for election by GSB's
          stockholders,  was  approved  by a vote of at least a majority  of the
          directors then  comprising the Incumbent  Board shall be considered as
          though  such  individual  were a member of the  Incumbent  Board,  but
          excluding,  for  this  purpose,  any  such  individual  whose  initial
          assumption  of office  occurs  as a result of an actual or  threatened
          election  contest with respect to the election or removal of directors
          or other actual or threatened  solicitation of proxies or consents, by
          or on behalf of a person other than the Board of Directors of GSB; or

          Notwithstanding the foregoing, the occurrence of an event described in
          the above paragraphs (A) through (C),  inclusive,  shall not be deemed
          to constitute a Change of Control Event if,  following the  occurrence
          of such event,  Gerald J.  Ford continues to serve as the Chairman and
          Chief  Executive  Officer  of the  Company  (in the case of a Business
          Combination,  of the surviving company in such Business  Combination).
          However, if a Change of Control Event does not occur solely because of
          the  operation  of the  preceding  sentence,  then a Change of Control
          Event shall occur upon the subsequent death or permanent disability of
          Gerald J. Ford.

          (d)  Death.  If the  Executive  shall die  before  termination  of his
     employment  hereunder,  the Executive's estate shall be entitled to receive
     continued payments in an amount equal to 60% of the Executive's base salary
     at the time of his death in  accordance  with Section 4(a) above during the
     remaining term of this Agreement (as provided in Section 3 above).

          (e) No Mitigation of Amounts  Payable  Hereunder.  The Executive shall
     not be required to mitigate the amount of any payment  provided for in this
     Section 5 by seeking other employment or otherwise, nor shall the amount of
     any payment  provided for in this Section 5 be reduced by any  compensation
     earned by the  Executive as the result of  employment  by another  employer
     after the Date of Termination, or otherwise.

                                       9

<PAGE>

          (f) Limitations on Payments.

               (i) Anything in this  Section 5 to the contrary  notwithstanding,
          in the event it shall be determined  that any payment or  distribution
          made, or benefit provided, by the Company to or for the benefit of the
          Executive  (whether paid or payable or distributed or distributable or
          provided pursuant to the terms hereof or otherwise) would constitute a
          "parachute payment" as defined in Section 280G of the Internal Revenue
          Code of 1986,  as amended (the  "Code"),  then the lump sum  severance
          payment  payable  pursuant to Section  5(c)(i) shall be reduced so hat
          the  aggregate  present  value  of  all  payments  in  the  nature  of
          compensation  to (or  for the  benefit  of) the  Executive  which  are
          contingent  on a  change  of  control  (as  defined  in  Code  Section
          280G(b)(2)(A))  is One Dollar  ($1.00)  less than the amount which the
          Executive could receive without being  considered to have received any
          parachute  payment  (the  amount  of this  reduction  in the  lump sum
          severance  payment is referred to herein as "the Excess Amount").  The
          determination of the amount of any reduction  required by this Section
          5(f)(i) shall be made by an  independent  accounting  firm (other than
          the Company's independent accounting firm) selected by the Company and
          acceptable  to  the  Executive,   and  such  determination   shall  be
          conclusive and binding on the parties hereto.

               (ii)  Notwithstanding the provisions of Section 5(f)(i), if it is
          established,  pursuant  to a  final  determination  of a  court  or an
          Internal  Revenue  Service  proceeding  which  has  been  finally  and
          conclusively  resolved,  that an Excess  Amount  was  received  by the
          Executive  from the Company,  then such Excess  Amount shall be deemed
          for all  purposes to be a loan to the  Executive  made on the date the
          Executive received the Excess Amount and the Executive shall repay the
          Excess Amount to the Company on demand (but no less than ten (10) days
          after  written  demand is received  by the  Executive)  together  with
          interest on the4 Excess  Amount at the  "applicable  Federal rate" (as
          defined  in  Section  1274(d)  of  the  Code)  from  the  date  of the
          Executive's  receipt  of such  Excess  Amount  until  the date of such
          repayment.

     6. Termination Under Banking Laws.

          (a) If the  Executive  is  suspended or  temporarily  prohibited  from
     participating  in the conduct of the  Company's  affairs by a notice served
     under Section 8(e)(3) or (g)(1) of the Federal  Deposit  Insurance Act (the
     "FDIA")  (12  U.S.C.   Section  1818  (e)(3)  and  (g)(1)),  the  Company's
     obligations  under  this  Agreement  shall be  suspended  as of the date of
     service of such notice unless  stayed by  appropriate  proceedings.  If the
     charges in the notice are dismissed,  the Company may in its discretion (1)
     pay the  Executive  all or  part of the  compensation  withheld  while  its
     obligations  hereunder were  suspended,  and (ii) reinstate (in whole or in
     part) any of its obligations which were suspended.

          (b) If  the  Executive  is  removed  or  permanently  prohibited  from
     participating  in the conduct of the  Company's  affairs by an order issued
     under Section 8(e)(4) or (g)(1) of

                                       10

<PAGE>

          the FDIA (12 U.S.C.  Section 1818(e)(4) or (g)(1)), all obligations of
     the Company under this Agreement  shall  terminate as of the effective date
     of the order,  but vested  rights of the  contracting  parties shall not be
     affected.

          (c) If the Company is in default (as defined in Section 3(x)(1) of the
     FDIA), all obligations  under this Agreement shall terminate as of the date
     of default, but this Section 6(c) shall not affect any vested rights of the
     Company or of the Executive.

          (d)  All  obligations  of the  Company  under  this  Agreement  may be
     terminated,  except to the  extent  determined  that  continuation  of this
     Agreement is necessary  for the  continued  operation of the Company (i) by
     the Director of the Office of Thrift Supervision (the "Director") or his or
     her  designee,  at  the  time  Federal  Deposit  Insurance  Corporation  or
     Resolution Trust Corporation enters into an agreement to provide assistance
     to or on behalf of the Company  under the  authority  contained  in Section
     13(c) of the FDIA; or (ii) by the Director or his or her  designee,  at the
     time the Director or his or her designee  approves a supervisory  merger to
     resolve  problems  related to operations of the Company or when the Company
     is determined by the Director to be in an unsafe or unsound condition.  Any
     rights of the  parties  that have  already  vested,  however,  shall not be
     affected by such action.

     7. Confidential Information. The Executive recognizes and acknowledges that
he will have access to certain  information  of members of the Company Group (as
defined  below)  and that  such  information  is  confidential  and  constitutes
valuable,  special and unique property of such members of the Company Group. The
Executive shall not at any time, either during or subsequent to the term of this
Agreement,  disclose  to others,  use,  copy or permit to be  copied,  except in
pursuance of his duties for and on behalf of the Company, it successors, assigns
or nominees,  any  Confidential  Information  of any member of the Company Group
(regardless  of whether  developed by the  Executive)  without the prior written
consent of the Company.

     As used herein,  "Company  Group"  means the  Company,  and any entity that
directly or indirectly  controls,  is controlled  by, or is under common control
with,  the Company,  and for  purposes of this  definition  "control"  means the
possession,  directly  or  indirectly,  of the  power to  direct  or  cause  the
direction of the  management  and policies of such entity,  whether  through the
ownership of voting securities, by contract or otherwise.

     The term  "Confidential  Information"  with respect to any person means any
secret or confidential  information or know-how and shall include, but shall not
be limited to, the plans,  customers,  costs,  prices, uses, and applications of
products and services,  results of investigations,  studies or experiments owned
or used by such person, and all apparatus,  products,  processes,  compositions,
samples,  formulas,  computer  programs,  computer  hardware  designs,  computer
firmware  designs,  and  servicing,   marketing  or  manufacturing  methods  and
techniques  at any  time  used,  developed,  investigated,  made or sold by such
person,  before  or  during  the term of this  Agreement,  that are not  readily
available to the public or that are maintained as  confidential  by such person.
The Executive shall maintain in confidence any Confidential Information of third
parties  received as a result of his  employment  with the Company in accordance
with  the  Company's   obligations  to  such  third  parties  and  the  policies
established by the Company.

                                       11

<PAGE>

     8. Delivery of Documents Upon  Termination.  The Executive shall deliver to
the  Company  or  its  designee  at  the   termination  of  his  employment  all
correspondence,  memoranda, notes, records, drawings,  sketches, plans, customer
lists, product compositions,  and other documents and all copies thereof,  made,
composed or received by the Executive,  solely or jointly with others,  that are
in the Executive's  possession,  custody, or control at termination and that are
related in any  manner to the past,  present,  or  anticipated  business  or any
member of the Company  Group.  In this regard,  the Executive  hereby grants and
conveys  to the  Company  all right,  title and  interest  in and to,  including
without  limitation,  the right to possess,  print,  copy, and sell or otherwise
dispose of, any reports,  records, papers, summaries,  photographs,  drawings or
other documents,  and writings, and copies, abstracts or summaries thereof, that
may be prepared by the  Executive  or under his  direction or that may come into
his  possession  in any way during the term of his  employment  with the Company
that relate in any manner to the past,  present or  anticipated  business of any
member of the Company Group.

     9. Disclosure and Receipt of Confidential Information.  The Executive shall
not, at any time during his employment, receive from persons not employed by the
Company, any Confidential Information,  as described above, not belonging to the
Company,  unless a valid agreement is authorized by the Company and is signed by
both the Company and by the  disclosing  party.  The Executive  shall not use or
disclose to other  employees  of the  Company,  during his  employment  with the
Company,  Confidential  Information  belonging to his former  employers,  former
business  associates,  or any other third parties unless written  permission has
been given by such third  parties to the Company and  accepted by the Company to
allow the Company to use and/or disclose such  information.  The Executive shall
defend and indemnify the Company Group for any breach of the covenant  contained
in the preceding sentence.

     10.  Intellectual  Property.  The  Executive  shall  hold in trust  for the
benefit of the Company,  and shall disclose promptly and fully to the Company in
writing, and hereby assigns, and binds his heirs, executors,  and administrators
to assign, to the Company any and all inventions,  discoveries, ideas, concepts,
improvements,  copyrightable  works, and other developments (the "Developments")
conceived,  made, discovered or developed by him, solely or jointly with others,
during the term of his  employment by the Company,  whether during or outside of
usual working hours and whether on the Company's premises or not, that relate in
any manner to the past,  present or  anticipated  business  of any member of the
Company  Group.  All works of  authorship  created by the  Executive,  solely or
jointly with others, shall be considered works made for hire under the Copyright
Act of 1976, as amended, and shall be owned entirely by the Company. Any and all
such  Developments  shall be the sole and  exclusive  property  of the  Company,
whether patentable,  copyrightable,  or neither,  and the Executive shall assist
and fully  cooperate  in every  way,  at the  Company's  expense,  in  securing,
maintaining,  and  enforcing,  for the benefit of the  Company or its  designee,
patents,  copyrights  or other types of  proprietary  or  intellectual  property
protection  for such  Developments  in any and all  countries.  Within  one year
following  the end of the  term of  this  Agreement  and  without  limiting  the
generality of the foregoing,  any  Development of the Executive  relating to any
subject  matter  on which  the  Executive  worked  or was  informed  during  his
employment by the Company shall be conclusively  presumed to have been conceived
and made  prior to the  termination  of his  employment  (unless  the  Executive
clearly  proves that such  Development

                                       12

<PAGE>

was conceived and made following the termination of his  employment),  and shall
accordingly  belong and be  assigned to the Company and shall be subject to this
Agreement.

     11.  Further  Acts.  At the request of the Company (but without  additional
compensation  from  the  Company  during  his  employment  by the  Company)  the
Executive  shall execute any and all papers and perform all lawful acts that the
Company may deem necessary or  appropriate to further  evidence or carry out the
transactions contemplated in this Agreement including,  without limitation, such
acts  as  may  be  necessary  for  the  preparation,  filing,  prosecution,  and
maintenance of applications for United States letters patent and foreign letters
patent, or for United States and foreign copyright, on the Developments.

     12. No Competition.  Throughout the term of this  Agreement,  the Executive
shall not directly or indirectly engage in the business of banking, or any other
business in which the Company directly or indirectly  engages during the term of
this Agreement; provided, however, that the restriction in this Section 12 shall
apply only to the reasonable and limited geographic area consisting of any state
in which  the  Company  directly  or  indirectly  has  offices,  operations,  or
customers,  or otherwise conducts business. For purposes of this Section 12, the
Executive  shall be deemed to engage in a business if he directly or indirectly,
engages or invests in, owns, manages, operates,  controls or participates in the
ownership, management, operation or control of, is employed by, associated or in
any manner  connected  with,  or  renders  services  or advice to, any  business
engaged in banking;  provided,  however,  that the  Executive  may invest in the
securities  of  any  enterprise  (but  without  otherwise  participating  in the
activities of such enterprise) if (x) such securities are listed on any national
or regional  securities  exchange or have been registered under Section 12(g) of
the Securities  Exchange Act of 1934 and (y) the Executive does not beneficially
own (as defined in Rule 13d-3 promulgated  under the Securities  Exchange Act of
1934) in excess of 5% of the outstanding capital stock of such enterprise.

     The Executive agrees that if a court of competent  jurisdiction  determines
that the length of time or any other restriction,  or portion thereof, set forth
in this Section 12 is overly restrictive and unenforceable, the court may reduce
or modify such  restrictions to those which it deems  reasonable and enforceable
under the circumstances, and as so reduced or modified, the parties hereto agree
that the  restrictions of this Section 12 shall remain in full force and effect.
The  Executive  further  agrees  that  if  a  court  of  competent  jurisdiction
determines  that any provision of this  Section 12 is invalid or against  public
policy,  the remaining  provisions of this  Section 12 and the remainder of this
Agreement  shall not be  affected  thereby,  and shall  remain in full force and
effect.

     The Executive  acknowledges that the business of the Company is national in
scope  and that the  restrictions  imposed  by this  Agreement  are  legitimate,
reasonable  and necessary to protect the Company's  investment in its businesses
and the goodwill thereof. The Executive acknowledges that the scope and duration
of the  restrictions  contained  herein are reasonable in light of the time that
the Executive has been engaged in the business of the Company,  the  Executive's
reputation  in the  markets for the  Company's  businesses  and the  Executive's
relationship  with the  suppliers,  customers  and clients of the  Company.  The
Executive further  acknowledges  that the restrictions  contained herein are not
burdensome to the Executive in light of the consideration  paid therefor and the
other

                                       13

<PAGE>

opportunities  that  remain  open  to the  Executive.  Moreover,  the  Executive
acknowledges  that he has other  means  available  to him for the pursuit of his
livelihood.

     13. No  Tampering.  Throughout  the term of this  Agreement and through the
second  anniversary  of the  expiration  thereof,  the  Executive  shall not (a)
request,  induce or attempt to influence any distributor or supplier of goods or
services  to any member of the Company  Group to curtail or cancel any  business
they may transact with any member of the Company Group;  (b) request,  induce or
attempt to influence  any customers of any member of the Company Group that have
done  business with or potential  customers  which have been in contact with any
member of the Company  Group to curtail or cancel any business they may transact
with any  member of the  Company  Group;  or (c)  request,  induce or attempt to
influence  any employee of any member of the Company  Group to terminate  his or
her employment with such member of the Company Group.

     14.  Publicity and  Advertising.  The Executive agrees that the Company may
use his name,  picture,  or likeness for any  advertising,  publicity,  or other
business  purpose at any time,  during the term of this Agreement by the Company
and may continue to use materials  generated  during the term of this  Agreement
for a  period  of six  months  thereafter.  Such  use of the  Executive's  name,
picture,  or  likeness  shall not be deemed  to  result in any  invasion  of the
Executive's  privacy or in a violation of any property  right the  Executive may
have; and the Executive shall receive no additional  consideration  if his name,
picture or likeness is so used. The Executive further agrees that any negatives,
prints or other  material  for  printing or  reproduction  purposes  prepared in
connection with the use of his name, picture or likeness by the Company shall be
and are the sole property of the Company.

     15.  Remedies.  The  Executive  acknowledges  that a remedy  at law for any
breach or  attempted  breach of the  Executive's  obligations  under  Sections 7
through  14 may be  inadequate,  agrees  that the  Company  may be  entitled  to
specific  performance and injunctive and other equitable remedies in case of any
such breach or attempted breach, and further agrees to waive any requirement for
the securing or posting of any bond in connection with the obtaining of any such
injunctive or other equitable relief. The Company shall have the right to offset
against  amounts to be paid to the  Executive  pursuant to the terms  hereof any
amounts from time to time owing by the Executive to the Company. The termination
of this Agreement  pursuant to Section 3, 5(a) or 5(b) shall not be deemed to be
a waiver by the Company of any breach by the Executive of this  Agreement or any
other obligation owed the Company,  and  notwithstanding  such a termination the
Executive shall be liable for all damages attributable to such a breach.

     16. Dispute  Resolution.  Subject to the Company's right to seek injunctive
relief in court as  provided  in  Section 15  of this  Agreement,  any  dispute,
controversy or claim arising out of or in relation to or in connection with this
Agreement,  including  without  limitation  any dispute as to the  construction,
validity,  interpretation,  enforceability or breach of this Agreement, shall be
exclusively and finally  settled by  arbitration,  and any party may submit such
dispute,  controversy or claim, including for indemnification under this Section
16,  to  arbitration.

          (a) Arbitrators.  The arbitration shall be heard and determined by one
     arbitrator,  who shall be  impartial  and who shall be  selected  by mutual
     agreement of the parties;

                                       14

<PAGE>

     provided,  however, that if the dispute involves more than $2,000,000, then
     the arbitration shall be heard and determined by three (3) arbitrators.  If
     three (3) arbitrators  are necessary as provided above,  then (i) each side
     shall  appoint an  arbitrator  of its choice within thirty (30) days of the
     submission  of  a  notice  of  arbitration  and  (ii)  the  party-appointed
     arbitrators  shall in turn appoint a presiding  arbitrator  of the tribunal
     within   thirty  (30)  days   following   the   appointment   of  the  last
     party-appointed  arbitrator.  If (x) the parties  cannot  agree on the sole
     arbitrator, (y) one party refuses to appoint its party-appointed arbitrator
     within said thirty (30) day period or (z) the  party-appointed  arbitrators
     cannot reach agreement on a presiding arbitrator of the tribunal,  then the
     appointing  authority for the implementation of such procedure shall be the
     Senior United States District Judge for the Northern District of Texas, who
     shall  appoint an  independent  arbitrator  who does not have any financial
     interest in the dispute,  controversy or claim. If the Senior United States
     District  Judge for the Northern  District of Texas refuses or fails to act
     as the appointing  authority  within ninety (90) days after being requested
     to do so,  then  the  appointing  authority  shall be the  Chief  Executive
     Officer  of the  American  Arbitration  Association,  who shall  appoint an
     independent  arbitrator  who does not have any  financial  interest  in the
     dispute,  controversy or claim. All decisions and awards by the arbitration
     tribunal shall be made by majority vote.

          (b) Proceedings.  Unless otherwise  expressly agreed in writing by the
     parties to the arbitration proceedings:

               (i) The arbitration  proceedings shall be held in Dallas,  Texas,
          at a site chosen by mutual agreement of the parties, or if the parties
          cannot reach  agreement on a location  within  thirty (30) days of the
          appointment  of the  last  arbitrator,  then at a site  chosen  by the
          arbitrator(s);

               (ii) The  arbitrator(s)  shall be and remain at all times  wholly
          independent and impartial;

               (iii)  The   arbitration   proceedings   shall  be  conducted  in
          accordance  with the  Commercial  Arbitration  Rules  of the  American
          Arbitration Association, as amended from time to time;

               (iv) Any  procedural  issues not  determined  under the  arbitral
          rules selected pursuant to item (iii) above shall be determined by the
          law of the place of  arbitration,  other than  those laws which  would
          refer the matter to another jurisdiction;

               (v)  The  costs  of  the   arbitration   proceedings   (including
          attorneys' fees and costs) shall be borne in the manner  determined by
          the arbitrator(s);

               (vi)  The  decision  of the  arbitrator(s)  shall be  reduced  to
          writing;  final and binding without the right of appeal;  the sole and
          exclusive  remedy  regarding  any  claims,  counterclaims,  issues  or
          accounting  presented to the arbitrator(s);  made and promptly paid in
          United States  dollars free of any deduction or offset;  and any costs

                                       15

<PAGE>

          or fees incident to enforcing the award shall,  to the maximum  extent
          permitted  by  law,  be  charged  against  the  party  resisting  such
          enforcement;

               (vii)  The  award  shall  include  interest  from the date of any
          breach or violation of this  Agreement,  as determined by the arbitral
          award,  and from the date of the award  until paid in full,  at 6% per
          annum; and

               (viii) Judgment upon the award may be entered in any court having
          jurisdiction  over the  person or the  assets  of the party  owing the
          judgment  or  application  may be made to such  court  for a  judicial
          acceptance of the award and an order of  enforcement,  as the case may
          be.

          (c) Acknowledgment Of Parties.  Each party acknowledges that he or she
     or  it  has  voluntarily  and  knowingly   entered  into  an  agreement  to
     arbitration under this Section by executing this Agreement.

          17. Miscellaneous Provisions.

          (a) Successors of the Company.  The Company will require any successor
     (whether  direct  or  indirect,  by  purchase,  merger,   consolidation  or
     otherwise) to all or substantially all of the business and/or assets of the
     Company, by agreement in form and substance  satisfactory to the Executive,
     expressly to assume and agree to perform this  Agreement in the same manner
     and to the same extent that the Company  would be required to perform it if
     no such  succession had taken place.  Failure of the Company to obtain such
     agreement  prior to the  effectiveness  of any such  succession  shall be a
     breach of this  Agreement and shall  entitle the Executive to  compensation
     from the Company in the same amount and on the same terms as the  Executive
     would be entitled hereunder if the Executive  terminated his employment for
     Good Reason,  except that for purposes of implementing  the foregoing,  the
     date on which any such  succession  becomes  effective  shall be deemed the
     Date of Termination.  As used in this  Agreement,  "Company" shall mean the
     Company as  hereinbefore  defined and any successor to its business  and/or
     assets as aforesaid which executes and delivers the agreement  provided for
     in this Section 17 or which  otherwise  becomes  bound by all the terms and
     provisions of this Agreement by operation of law.

          (b) Executive's Heirs, etc. The Executive may not assign his rights or
     delegate his duties or obligations hereunder without the written consent of
     the  Company.  This  Agreement  shall  inure  to  the  benefit  of  and  be
     enforceable  by  the   Executive's   personal  or  legal   representatives,
     executors,  administrators,  successors, heirs, distributees,  devisees and
     legatees.  If the  Executive  should die while any  amounts  would still be
     payable to him hereunder as if he had continued to live,  all such amounts,
     unless other provided herein, shall be paid in accordance with the terms of
     this  Agreement to his designee  or, if there be no such  designee,  to his
     estate.

          (c) Notice. For the purposes of this Agreement,  notices and all other
     communications  provide for in this Agreement shall be in writing and shall
     be deemed to

                                       16

<PAGE>

     have been duly given when  delivered or mailed by United States  registered
     or certified mail, return receipt requested,  postage prepaid, addressed to
     the  respective  addresses  set forth on the first page of this  Agreement,
     provided that all notices to the Company shall be directed to the attention
     of the Chief Operating  Officer of the Company with a copy to the Secretary
     of the Company, or to such other in writing in accordance herewith,  except
     that notices of change of address shall be effective only upon receipt.

          (d)  Amendment;  Waiver.  No  provisions  of  this  Agreement  may  be
     modified,  waived  or  discharged  unless  such  waiver,   modification  or
     discharge is agreed to in writing  signed by the Executive and such officer
     as may be specifically designated by the Board of Directors of the Company.
     No  waiver by either  party  hereto at any time of any  breach by the other
     party hereto of, or  compliance  with,  any  condition or provision of this
     Agreement  to be  performed by such other party shall be deemed a waiver of
     similar or dissimilar  provisions or conditions at the same or at any prior
     or subsequent  time. No agreements or  representations,  oral or otherwise,
     express or implied,  with  respect to the subject  matter  hereof have been
     made by either party which are not set forth expressly in this Agreement.

          (e)  Invalid  Provisions.  Should  any  portion of this  Agreement  be
     adjudged or held to be invalid,  unenforceable  or void, such holding shall
     not have the  effect of  invalidating  or  voiding  the  remainder  of this
     Agreement  and the parties  hereby agree that the portion so held  invalid,
     unenforceable  or void shall, if possible,  be deemed amended or reduced in
     scope,  or otherwise be stricken from this Agreement to the extent required
     for the purposes of validity and enforcement thereof.

          (f)  Survival  of  the   Executive's   Obligations.   The  Executive's
     obligations  under this Agreement  shall survive  regardless of whether the
     Executive's  employment  by  the  Company  is  terminated,  voluntarily  or
     involuntarily, by the Company or the Executive, with or without Cause.

          (g)  Counterparts.  This  Agreement  may be  executed  in one or  more
     counterparts,  each of which shall be deemed to be an  original  but all of
     which together will constitute one and the same instrument.

          (h) Governing Law. This  Agreement  shall be governed by and construed
     under the laws of the State of Texas.

          (i)  Captions  and Gender.  The use of captions  and Section  headings
     herein  is for  purposes  of  convenience  only and shall  not  affect  the
     interpretation or substance of any provisions contained herein.  Similarly,
     the use of the masculine  gender with respect to

                                       17

<PAGE>

     pronouns in this  Agreement  is for  purposes of  convenience  and includes
     either sex who may be a signatory.

     IN WITNESS WHEREOF, the parties hereto have signed this Agreement as of the
22nd day of November, 1999.

                                 CALIFORNIA FEDERAL BANK, A FEDERAL SAVINGS BANK

                                 By:      /s/  Carl  B.  Webb
                                    --------------------------------------------
                                 Name:  Carl  B.  Webb
                                 Title:  President and Chief Operating Officer

                                 GERALD J. FORD

                                          /s/ Gerald J. Ford
                                 -----------------------------------------------

                                       18

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