Document:

EXHIBIT 4.1

                             FIXED RATE SENIOR NOTE

REGISTERED                                                     REGISTERED
No. FXR                                                        U.S.$
                                                               CUSIP: 617446GD5

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

                                      A-1

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<TABLE>
                                         MORGAN STANLEY DEAN WITTER & CO.
                                     SENIOR GLOBAL MEDIUM-TERM NOTE, SERIES C
                                                   (Fixed Rate)

                                        % EXCHANGEABLE NOTE DUE NOVEMBER 30, 2007
                                    (EXCHANGEABLE FOR SHARES OF COMMON STOCK OF
                                           THE PROCTER & GAMBLE COMPANY)

===================================================================================================================
<S>                           <C>                          <C>                          <C>
ORIGINAL ISSUE DATE:          INITIAL REDEMPTION           INTEREST RATE:               MATURITY DATE:
                  , 2000           DATE: See "MSDW              0.25% per annum              November 30, 2007
                                   Call Right" below
-------------------------------------------------------------------------------------------------------------------
INTEREST ACCRUAL              INITIAL REDEMPTION           INTEREST PAYMENT             OPTIONAL
     DATE: November 17,            PERCENTAGE:                  DATE(S): Each May            REPAYMENT
     2000                          100%                         30 and November 30,          DATE(S): N/A
                                                                beginning May 30,
                                                                2001
-------------------------------------------------------------------------------------------------------------------
SPECIFIED CURRENCY:           ANNUAL REDEMPTION            INTEREST PAYMENT             APPLICABILITY OF
     U.S. Dollars                  PERCENTAGE                   PERIOD:  Semi-               MODIFIED
                                   REDUCTION: N/A               annually                     PAYMENT UPON
                                                                                             ACCELERATION:
                                                                                             See "Alternate
                                                                                             Calculation in case of
                                                                                             an Event of Default"
                                                                                             below
-------------------------------------------------------------------------------------------------------------------
IF SPECIFIED                  REDEMPTION NOTICE            APPLICABILITY OF             If yes, state Issue Price:
     CURRENCY                      PERIOD: N/A                  ANNUAL
     OTHER THAN                                                 INTEREST
     U.S. DOLLARS,                                              PAYMENTS: N/A
     OPTION TO
     ELECT
     PAYMENT IN
     U.S. DOLLARS:
     N/A
-------------------------------------------------------------------------------------------------------------------
EXCHANGE RATE                                                                           ORIGINAL YIELD TO
     AGENT: N/A                                                                              MATURITY: N/A
-------------------------------------------------------------------------------------------------------------------
OTHER PROVISIONS:
     See below
===================================================================================================================

                                      A-2
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Issue Price.................................     $           (     % of principal amount at maturity)

Exchange Right..............................     On any Exchange Date, subject to a prior call of this
                                                 Note for cash in an amount equal to the Call Price by
                                                 the Issuer as described under "MSDW Call Right"
                                                 below, the holder of this Note shall be entitled upon
                                                 (i) completion by the holder and delivery to the Issuer
                                                 and the Calculation Agent of an Official Notice of
                                                 Exchange (in the form of Annex A attached hereto)
                                                 prior to 11:00 a.m. New York City time on such date
                                                 and (ii) delivery on such date of this Note to the
                                                 Trustee, to exchange each $1,000 principal amount of
                                                 this Note for ________ shares (the "Exchange Ratio") of
                                                 the common stock, no par value (Procter & Gamble
                                                 Stock"), of The Procter & Gamble Company ("Procter
                                                 & Gamble"), subject to any adjustment (x) to the
                                                 Exchange Ratio or (y) in the stock, other securities or
                                                 other property or assets (including, without limitation,
                                                 cash or other classes of stock of Procter & Gamble)
                                                 ("Other Exchange Property") to be delivered instead of
                                                 or in addition to such Procter & Gamble Stock as a
                                                 result of any corporate event described under
                                                 "Antidilution Adjustments" below, in each case,
                                                 required to be made prior to the close of business on the
                                                 second Business Day after any such Exchange Date.
                                                 Upon any such exchange, the Issuer may, at its sole
                                                 option, either deliver such Procter & Gamble Stock (or
                                                 such Other Exchange Property to be delivered instead
                                                 of or in addition to such Procter & Gamble Stock as
                                                 aforesaid) or pay an amount in cash for each $1,000
                                                 principal amount of this Note equal to the Exchange
                                                 Ratio as of the close of business on such Exchange
                                                 Date times the Market Price of one share of Procter &
                                                 Gamble Stock (or such Other Exchange Property) on
                                                 the Exchange Date, as determined by the Calculation
                                                 Agent, in lieu of such Procter & Gamble Stock (or such
                                                 Other Exchange Property).  Such delivery or payment
                                                 shall be made 3 Business Days after any Exchange
                                                 Date, subject to delivery of this Note to the Trustee on
                                                 the Exchange Date as aforesaid.  Upon any exercise of
                                                 the Exchange Right, the holder of this exchanged Note
                                                 shall not be entitled to receive any cash payment
                                                 representing any accrued but unpaid interest on this
                                                 Note.

                                                 A-3
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                                                 Prior to 9:30 a.m. on the first Business Day
                                                 immediately succeeding any Exchange Date, the Issuer
                                                 shall cause the Calculation Agent to provide written
                                                 notice to the Trustee at its New York office and to
                                                 The Depository Trust Company, or any successor
                                                 depositary ("DTC"), on which notice the Trustee and
                                                 DTC may conclusively rely, (i) of its receipt of any
                                                 such "Official Notice of Exchange," (ii) of the
                                                 Issuer's determination to deliver Procter & Gamble
                                                 Stock (or, if applicable, any Other Exchange Property
                                                 to be delivered as a result of any corporate event
                                                 described in paragraphs 5 or 6 under "Antidilution
                                                 Adjustments" below) or to pay cash for each $1,000
                                                 principal amount of this Note and (iii) if Procter &
                                                 Gamble Stock (or, if applicable, any Other Exchange
                                                 Property) of the number of Procter & Gamble Stock (or
                                                 the amount of such Other Exchange Property), and of
                                                 the amount of any cash to be paid in lieu of
                                                 fractional shares of Procter & Gamble Stock (or of any
                                                 other securities included in Other Exchange Property,
                                                 if applicable) or, if cash is to be paid, of the
                                                 amount of such cash for each $1,000 principal amount
                                                 of this Note. If, as a result of any corporate event
                                                 described under "Antidilution Adjustments" occurring
                                                 during the period from and including the Exchange Date
                                                 to but excluding the third Business Day following the
                                                 Exchange Date, the Calculation Agent makes any
                                                 adjustment to the Exchange Ratio and consequent
                                                 adjustment to the number of shares of Procter & Gamble
                                                 Stock to be delivered or any adjustment to the
                                                 quantity of any Other Exchange Property due to the
                                                 holder of this Note, the Calculation Agent shall give
                                                 prompt notice of any such adjustments to the Trustee
                                                 at its New York office and to DTC, on which notice the
                                                 Trustee may conclusively rely. No adjustments to the
                                                 Exchange Ratio will be made after the Exchange Date if
                                                 the Issuer has given notice that it will deliver cash
                                                 for each $1,000 principal amount of this Note.

                                                 The Issuer shall, or shall cause the Calculation Agent
                                                 to, deliver any such Procter & Gamble Stock (or any
                                                 Other Exchange Property) or such cash to the Trustee
                                                 for delivery to the holders.

                                                  A-4
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No Fractional Shares .......................     If upon any exchange of this Note the Issuer chooses to
                                                 deliver Procter & Gamble Stock (and, if applicable, any
                                                 other stock or other securities), the Issuer shall pay cash
                                                 in lieu of delivering fractional shares of Procter &
                                                 Gamble Stock (and, if applicable, of any other stock or
                                                 securities) in an amount  equal to the corresponding
                                                 fractional Market Price of such fraction of shares of
                                                 Procter & Gamble Stock (or, if applicable, of such
                                                 other stock or other securities) as determined by the
                                                 Calculation Agent as of such Exchange Date.

Exchange Ratio..............................                 , subject to adjustment for certain corporate
                                                 events relating to The Procter & Gamble Company.
                                                 See "Antidilution Adjustments" below.

Exchange Date...............................     Any Trading Day that falls during the period beginning
                                                 December 18, 2000 and ending on the day prior to the
                                                 earliest of (i) the last scheduled Trading Day prior to the
                                                 Maturity Date, (ii) the fifth scheduled Trading Day
                                                 prior to the Call Date and (iii) in the event of a call for
                                                 the cash Call Price as described under "--MSDW Call
                                                 Right" below, the last scheduled Trading Day prior to
                                                 the MSDW Notice Date.

MSDW Call Right ............................     On or after November 18, 2002, the Issuer may call this
                                                 Note, in whole but not in part, for mandatory exchange
                                                 into Procter & Gamble Stock (and, if applicable, any
                                                 Other Exchange Property) at the Exchange Ratio;
                                                 provided that, if Parity on the Trading Day immediately
                                                 preceding the MSDW Notice Date, as determined by
                                                 the Calculation Agent, is less than the Call Price, the
                                                 Issuer shall (under those circumstances only) pay the
                                                 Call Price in cash on the Call Date.

                                                 On or after the MSDW Notice Date, unless the Issuer
                                                 has called this Note for cash, the holder of this Note
                                                 shall continue to be entitled to exercise the Exchange
                                                 Right and receive any amounts described under
                                                 "Exchange Right" above.

                                                 On the MSDW Notice Date, the Issuer shall give notice
                                                 of the Issuer's exercise of the MSDW Call Right (i) to
                                                 the holder of this Note by mailing notice of such
                                                 exercise by first class mail, postage prepaid, at
                                                 least 30

                                                  A-5
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                                                 days and not more than 60 days prior to the date (the
                                                 "Call Date") on which the Issuer shall effect such
                                                 exchange at the holder's last address as it shall
                                                 appear upon the registry books, (ii) to the Trustee by
                                                 telephone or facsimile confirmed by mailing such
                                                 notice to the Trustee by first class mail, postage
                                                 prepaid, at its New York office and (iii) to DTC in
                                                 accordance with the applicable procedures set forth in
                                                 the Letter of Representations related to this Note.
                                                 Any notice which is mailed in the manner herein
                                                 provided shall be conclusively presumed to have been
                                                 duly given, whether or not the holder of this Note
                                                 receives the notice. Failure to give notice by mail,
                                                 or any defect in the notice to the holder of any Note
                                                 shall not affect the validity of the proceedings for
                                                 the exercise of the MSDW Call Right with respect to
                                                 any other Note.

                                                 The notice of the Issuer's exercise of the MSDW Call
                                                 Right shall specify (i) the Call Date, (ii) whether
                                                 Parity on the Trading Date immediately prior to the
                                                 MSDW Notice Date is less than the Call Price so that
                                                 the Issuer will pay the Call Price in cash on the Call
                                                 Date, (iii) the place or places of payment in cash (in
                                                 the event of a call for the Call Price or if Parity,
                                                 as determined by the Calculation Agent, is equal to or
                                                 greater than the Call Price, the place or places of
                                                 delivery of the Procter & Gamble Stock, and, if
                                                 applicable, of any Other Exchange Property to be
                                                 delivered as a result of any corporate event described
                                                 in paragraphs 5 or 6 under "Antidilution Adjustments"
                                                 (and of any cash to be paid in lieu of fractional
                                                 shares of Procter & Gamble Stock (and, if applicable,
                                                 of any such other stock or securities)), (iv) the
                                                 number of shares of Procter & Gamble Stock (and, if
                                                 applicable, the quantity of any other Exchange
                                                 Property) to be delivered per $1,000 principal amount
                                                 of this Note, (v) that such delivery will be made upon
                                                 presentation and surrender of this Note and (vi) that
                                                 such exchange is pursuant to the MSDW Call Right.

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

                                                  A-6
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                                                 If shares of Procter & Gamble Stock (and, if
                                                 applicable, any Other Exchange Property) are to be
                                                 delivered and, as a result of any corporate event
                                                 described under "Antidilution Adjustments" occurring
                                                 during the period from and including the MSDW Notice
                                                 Date to the close of business on the second Business
                                                 Day prior to the Call Date, the Calculation Agent
                                                 makes any adjustment to the Exchange Ratio and
                                                 consequent adjustment to the number of shares of
                                                 Procter & Gamble Stock to be delivered or any
                                                 adjustment to the quantity of any Other Exchange
                                                 Property due to the holder of this Note, the
                                                 Calculation Agent shall give prompt notice of any such
                                                 adjustments to the Trustee at its New York office and
                                                 to DTC, on which notice the Trustee and DTC may
                                                 conclusively rely. No adjustment to the Exchange Ratio
                                                 shall be made as a result of any corporate event
                                                 occurring after the close of business on the second
                                                 Business Day prior to the Call Date.

                                                 If this Note is so called for mandatory exchange by
                                                 the Issuer, then, unless the holder subsequently
                                                 exercises his Exchange Right (the exercise of which
                                                 shall not be available to the holder following a call
                                                 for cash in an amount equal to the Call Price), the
                                                 Procter & Gamble Stock (and, if applicable, any Other
                                                 Exchange Property) or (in the event of a call for
                                                 cash, as described above) cash to be delivered to the
                                                 holder of this Note shall be delivered on the Call
                                                 Date fixed by the Issuer and set forth in its notice
                                                 of its exercise of the MSDW Call Right, upon delivery
                                                 of this Note to the Trustee. The Issuer shall, or
                                                 shall cause the Calculation Agent to, deliver such
                                                 Procter & Gamble Stock or cash to the Trustee for
                                                 delivery to the holders.

                                                 If this Note is not surrendered for exchange on the
                                                 Call Date, it shall be deemed to be no longer
                                                 Outstanding under, and as defined in, the Senior
                                                 Indenture (as defined below) after the Call Date,
                                                 except with respect to the holder's right to receive
                                                 Procter & Gamble Stock (and, if applicable, any Other
                                                 Exchange Property) or cash due in connection with the
                                                 MSDW Call Right.

MSDW Notice Date............................     The scheduled Trading Day on which the Issuer issues
                                                 its notice of mandatory exchange, which must be at

                                                  A-7
<PAGE>

                                                 least 30 but no more than 60 days prior to the Call
                                                 Date.

Call Date...................................     The scheduled Trading Day on or after November 18,
                                                 2002 specified by the Issuer in its notice of mandatory
                                                 exchange on which the Issuer shall deliver Procter &
                                                 Gamble Stock or cash to the holder of this Note for
                                                 mandatory exchange.

Parity......................................     With respect to any Trading Day, an amount equal to
                                                 the Exchange Ratio times the Market Price (as
                                                 defined below) of Procter & Gamble Stock on such
                                                 Trading Day.

Call Price..................................     $1,000 per Note

Market Price................................     If Procter & Gamble Stock (or any other security for
                                                 which a Market Price must be determined) is listed on
                                                 national securities exchange, is a security of The
                                                 Nasdaq National Market or is included in the OTC
                                                 Bulletin Board Service ("OTC Bulletin Board")
                                                 operated by the National Association of Securities
                                                 Dealers, Inc. (the "NASD"), the Market Price for one
                                                 share of Procter & Gamble Stock (or one unit of any
                                                 such other security) on any Trading Day means (i) the
                                                 last reported sale price, regular way, on such day on the
                                                 principal United States securities exchange  registered
                                                 under the Securities Exchange Act of 1934, as amended
                                                 (the "Exchange Act"), on which Procter & Gamble
                                                 Stock (or any such other security) are listed or admitted
                                                 to trading or (ii) if not listed or admitted to trading on
                                                 any such securities exchange or if such last reported
                                                 sale price is not obtainable (even if Procter & Gamble
                                                 Stock (or other such security) is listed or admitted to
                                                 trading on such securities exchanges), the last reported
                                                 sale price on the over-the-counter market as reported on
                                                 The Nasdaq National Market or OTC Bulletin Board on
                                                 such day.  If the last reported sale price is not available
                                                 pursuant to clause (i) or (ii) of the preceding sentence
                                                 because of a Market Disruption Event or otherwise, the
                                                 Market Price for any Trading Day shall be the mean, as
                                                 determined by the Calculation Agent, of the bid prices
                                                 for Procter & Gamble Stock (or any such other security)
                                                 obtained from as many dealers in such security (which

                                                  A-8
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                                                 may include MS & Co. or any of our other
                                                 subsidiaries or affiliates), but not exceeding
                                                 three, as shall make such bid prices available to
                                                 the Calculation Agent. A "security of The Nasdaq
                                                 National Market" shall include a security included
                                                 in any successor to such system and the term "OTC
                                                 Bulletin Board Service" shall include any successor
                                                 service thereto.

Trading Day.................................     A day, as determined by the Calculation Agent, on
                                                 which trading is generally conducted on the New York
                                                 Stock Exchange, Inc. ("NYSE"), the American Stock
                                                 Exchange, Inc., the Nasdaq National Market, the
                                                 Chicago Mercantile Exchange and the Chicago Board
                                                 of Options Exchange and in the over-the-counter
                                                 market for equity securities in the United States and on
                                                 which a Market Disruption Event has not occurred.

Calculation Agent...........................     Morgan Stanley & Co. Incorporated and its successors
                                                 ("MS & Co.")

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

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

                                                 2. If Procter & Gamble Stock is subject (i) to a stock
                                                 dividend (issuance of additional Procter & Gamble
                                                 Stock) that is given ratably to all holders of Procter
                                                 & Gamble Stock or (ii) to a distribution of Procter &
                                                 Gamble Stock as a result of the triggering of any
                                                 provision of the corporate charter of Procter &
                                                 Gamble,

                                                  A-9
<PAGE>

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

                                                 3. There shall be no adjustments to the Exchange Ratio
                                                 to reflect cash dividends or other distributions paid
                                                 with respect to Procter & Gamble Stock other than
                                                 distributions described in paragraph 6 below and
                                                 Extraordinary Dividends as described below. A cash
                                                 dividend or other distribution with respect to Procter
                                                 & Gamble Stock will be deemed to be an "Extraordinary
                                                 Dividend" if such dividend or other distribution
                                                 exceeds the immediately preceding non-Extraordinary
                                                 Dividend for Procter & Gamble Stock (as adjusted for
                                                 any subsequent corporate event requiring an adjustment
                                                 hereunder, such as a stock split or reverse stock
                                                 split) by an amount equal to at least 10% of the
                                                 Market Price on the Trading Day preceding the
                                                 ex-dividend date for the payment of such Extraordinary
                                                 Dividend (the "ex-dividend date") on the Procter &
                                                 Gamble Stock. If an Extraordinary Dividend occurs with
                                                 respect to Procter & Gamble Stock, the Exchange Ratio
                                                 with respect to Procter & Gamble Stock will be
                                                 adjusted on the ex-dividend date with respect to such
                                                 Extraordinary Dividend so that the new Exchange Ratio
                                                 shall equal the product of (i) the then current
                                                 Exchange Ratio and (ii) a fraction, the numerator of
                                                 which is the Market Price on the Trading Day preceding
                                                 the ex-dividend date, and the denominator of which is
                                                 the amount by which the Market Price on the Trading
                                                 Day preceding the ex-dividend date exceeds the
                                                 Extraordinary Dividend Amount. The "Extraordinary
                                                 Dividend Amount" with respect to an Extraordinary
                                                 Dividend shall equal (i) in the case of cash dividends
                                                 or other distributions that constitute quarterly
                                                 dividends, the amount per share of such Extraordinary
                                                 Dividend minus the amount per share of the immediately
                                                 preceding non-Extraordinary Dividend or (ii) in the
                                                 case of cash dividends or other distributions that do
                                                 not

                                                  A-10
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                                                 constitute quarterly dividends, the amount per share
                                                 of such Extraordinary Dividend. To the extent an
                                                 Extraordinary Dividend is not paid in cash, the value
                                                 of the non-cash component shall be determined by the
                                                 Calculation Agent, whose determination shall be
                                                 conclusive. A distribution on the Procter & Gamble
                                                 Stock described in paragraph 6 below that also
                                                 constitutes an Extraordinary Dividend shall only cause
                                                 an adjustment to the Exchange Ratio pursuant to
                                                 paragraph 6.

                                                 4. If Procter & Gamble is being liquidated or is
                                                 subject to a proceeding under any applicable
                                                 bankruptcy, insolvency or other similar law, the Notes
                                                 shall continue to be exchangeable into Procter &
                                                 Gamble Stock so long as an Market Price for Procter &
                                                 Gamble Stock is available. If a Market Price is no
                                                 longer available for Procter & Gamble Stock for
                                                 whatever reason, including the liquidation of Procter
                                                 & Gamble or the subjection of Procter & Gamble to a
                                                 proceeding under any applicable bankruptcy, insolvency
                                                 or other similar law, then the value of Procter &
                                                 Gamble Stock shall equal zero for so long as no Market
                                                 Price is available.

                                                 5. If there occurs any reclassification or change of
                                                 Procter & Gamble Stock, including, without limitation,
                                                 as a result of the issuance of tracking stock by
                                                 Procter & Gamble, or if Procter & Gamble has been
                                                 subject to a merger, combination or consolidation and
                                                 is not the surviving entity, or if there occurs a sale
                                                 or conveyance to another corporation of the property
                                                 and assets of Procter & Gamble as an entirety or
                                                 substantially as an entirety, in each case as a result
                                                 of which the holders of Procter & Gamble Stock shall
                                                 be entitled to receive stock, other securities or
                                                 other property or assets (including, without
                                                 limitation, cash or other shares of Procter & Gamble
                                                 Stock) ("Exchange Property") with respect to or in
                                                 exchange for such Procter & Gamble Stock, then the
                                                 holders of the Notes then outstanding shall be
                                                 entitled thereafter to exchange such Notes into the
                                                 kind and amount of Exchange Property that they would
                                                 have owned or been entitled to receive upon

                                                  A-11
<PAGE>

                                                 such reclassification, change, merger, combination,
                                                 consolidation, sale or conveyance had such holders
                                                 exchanged such Notes at the then current Exchange
                                                 Ratio for Procter & Gamble Stock immediately prior to
                                                 any such corporate event, but without interest
                                                 thereon. At such time, no adjustment will be made to
                                                 the Exchange Ratio.

                                                 6. If Procter & Gamble issues to all holders of
                                                 Procter & Gamble Stock equity securities of an issuer
                                                 other than Procter & Gamble (other than in a
                                                 transaction described in paragraph 5 above), then the
                                                 holders of the Notes then outstanding shall be
                                                 entitled to receive such new equity securities upon
                                                 exchange of such Notes. The Exchange Ratio for such
                                                 new equity securities shall equal the product of the
                                                 Exchange Ratio in effect for Procter & Gamble Stock at
                                                 the time of the issuance of such new equity securities
                                                 times the number of shares of the new equity
                                                 securities issued with respect to one share of Procter
                                                 & Gamble Stock.

                                                 7. No adjustments to the Exchange Ratio shall be
                                                 required other than those specified above. The
                                                 adjustments specified above do not cover all of the
                                                 events that could affect the Market Price. However,
                                                 the Issuer may, at its sole discretion, cause the
                                                 Calculation Agent to make additional changes to the
                                                 Exchange Ratio upon the occurrence of corporate or
                                                 other similar events that affect or could potentially
                                                 affect market prices of, or shareholders' rights in,
                                                 the Procter & Gamble Stock (or other Exchange
                                                 Property) but only to reflect such changes, and not
                                                 with the aim of changing relative investment risk.

                                                 No adjustments to the Exchange Ratio will be required
                                                 unless such adjustment would require a change of at
                                                 least 0.1% in the Exchange Ratio then in effect. The
                                                 Exchange Ratio resulting from any of the adjustments
                                                 specified above will be rounded to the nearest one
                                                 hundred-thousandth with five one-millionths being
                                                 rounded upward.

                                                  A-12

<PAGE>

                                                 The Calculation Agent shall be solely responsible for
                                                 the determination and calculation of any adjustments
                                                 to the Exchange Ratio and of any related
                                                 determinations and calculations with respect to any
                                                 distributions of stock, other securities or other
                                                 property or assets (including cash) in connection with
                                                 any corporate event described in paragraph 5 or 6
                                                 above, and its determinations and calculations with
                                                 respect thereto shall be conclusive.

                                                 The Calculation Agent shall provide information as to
                                                 any adjustments to the Exchange Ratio upon written
                                                 request by any holder of the Notes.

Market Disruption Event.....................     "Market Disruption Event" means, with respect to
                                                 Procter & Gamble Stock, the occurrence or existence of
                                                 any of the following events as determined by the
                                                 Calculation Agent:

                                                       (i) a suspension, absence or material limitation of
                                                       trading of Procter & Gamble Stock on the primary
                                                       market for Procter & Gamble Stock for more than two
                                                       hours of trading or during the one-half hour period
                                                       preceding the close of trading in such market; or a
                                                       breakdown or failure in the price and trade reporting
                                                       systems of the primary market for Procter & Gamble
                                                       Stock as a result of which the reported trading prices
                                                       for Procter & Gamble Stock during the last one-half
                                                       hour preceding the closing of trading in such market
                                                       are materially inaccurate; or the suspension, absence
                                                       or material limitation on the primary market for
                                                       trading in options contracts related to Procter &
                                                       Gamble Stock, if available, during the one-half hour
                                                       period preceding the close of trading in the
                                                       applicable market; and

                                                       (ii) a determination by the Calculation Agent in its
                                                       sole discretion that any event described in clause (i)
                                                       above materially interfered with the ability of the
                                                       Issuer or any of its affiliates to unwind all or a
                                                       material portion of the hedge with respect to the
                                                       0.25% Exchangeable Notes due November 30, 2007

                                                  A-13
<PAGE>

                                                       (Exchangeable for Shares of Common Stock of The
                                                       Procter & Gamble Company).

                                                 For purposes of determining whether a Market Disruption
                                                 Event has occurred: (1) a limitation on the hours or
                                                 number of days of trading shall not constitute a Market
                                                 Disruption Event if it results from an announced change
                                                 in the regular business hours of the relevant exchange,
                                                 (2) a decision to permanently discontinue trading in the
                                                 relevant option contract shall not constitute a Market
                                                 Disruption Event, (3) limitations pursuant to NYSE Rule
                                                 80A (or any applicable rule or regulation enacted or
                                                 promulgated by the NYSE, any other self-regulatory
                                                 organization or the Securities and Exchange Commission
                                                 of similar scope as determined by the Calculation Agent)
                                                 on trading during significant market fluctuations shall
                                                 constitute a suspension, absence or material limitation
                                                 of trading, (4) a suspension of trading in an options
                                                 contract on Procter & Gamble Stock by the primary
                                                 securities market trading in such options, if available,
                                                 by reason of (x) a price change exceeding limits set by
                                                 such securities exchange or market, (y) an imbalance of
                                                 orders relating to such contracts or (z) a disparity in
                                                 bid and ask quotes relating to such contracts shall
                                                 constitute a suspension, absence or material limitation
                                                 of trading in options contracts related to Procter &
                                                 Gamble Stock and (5) a suspension, absence or material
                                                 limitation of trading on the primary securities market
                                                 on which options contracts related to Procter & Gamble
                                                 Stock are traded shall not include any time when such
                                                 securities market is itself closed for trading under
                                                 ordinary circumstances.

Alternate Exchange Calculation
in case of an Event of Default..............     In case an Event of Default with respect to this Note
                                                 shall have occurred and be continuing, the amount
                                                 declared due and payable upon any acceleration of this
                                                 Note shall be determined by MS & Co., as Calculation
                                                 Agent, and shall be equal to the principal amount of
                                                 this Note plus any accrued and unpaid interest at the

                                                  A-14
<PAGE>

                                                 Interest Rate to but not including the date of
                                                 acceleration; provided that if (x) the holder of this
                                                 Note has submitted an Official Notice of Exchange to
                                                 the Issuer in accordance with the Exchange Right or
                                                 (y) the Issuer has called this Note, other than a call
                                                 for the cash Call Price, in accordance with the MSDW
                                                 Call Right, the amount declared due and payable upon
                                                 any such acceleration shall be an amount in cash for
                                                 each $1,000 principal amount of this Note equal to the
                                                 Exchange Ratio times the Market Price, determined by
                                                 the Calculation Agent as of the Exchange Date or as of
                                                 the date of acceleration, respectively, and shall not
                                                 include any accrued and unpaid interest thereon;
                                                 provided further that if the Issuer has called this
                                                 Note for cash in an amount equal to the Call Price, in
                                                 accordance with the MSDW Call Right, the amount
                                                 declared due and payable upon any such acceleration
                                                 shall be an amount in cash for each $1,000 principal
                                                 amount of this Note equal to the Call Price.

                                                  A-15
</TABLE>
<PAGE>

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

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

     Payment of the principal of this Note, any premium and the interest due at
maturity (or any redemption or repayment date), unless this Note is denominated
in a Specified Currency other than U.S. dollars and is to be paid in whole or
in part in such Specified Currency, will be made in immediately available funds
upon surrender of this Note at the office or agency of the Paying Agent, as
defined on the reverse hereof, maintained for that purpose in the Borough of
Manhattan, The City of New York, or at such other paying agency as the Issuer
may determine,

                                      A-16
<PAGE>

in U.S. dollars. U.S. dollar payments of interest, other than interest due at
maturity or on any date of redemption or repayment, will be made by U.S. dollar
check mailed to the address of the person entitled thereto as such address
shall appear in the Note register. A holder of U.S. $10,000,000 (or the
equivalent in a Specified Currency) or more in aggregate principal amount of
Notes having the same Interest Payment Date, the interest on which is payable
in U.S. dollars, shall be entitled to receive payments of interest, other than
interest due at maturity or on any date of redemption or repayment, by wire
transfer of immediately available funds if appropriate wire transfer
instructions have been received by the Paying Agent in writing not less than 15
calendar days prior to the applicable Interest Payment Date.

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

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

     If the holder elects to receive all or a portion of payments of principal
of and any premium and interest on this Note, if denominated in a Specified
Currency other than U.S. dollars, in U.S. dollars, the Exchange Rate Agent (as
defined on the reverse hereof) will convert such payments into U.S. dollars. In
the event of such an election, payment in respect of this Note will be based
upon the exchange rate as determined by the Exchange Rate Agent based on the
highest bid quotation in The City of New York received by such Exchange Rate
Agent at approximately

                                      A-17
<PAGE>

11:00 a.m., New York City time, on the second Business Day preceding the
applicable payment date from three recognized foreign exchange dealers (one of
which may be the Exchange Rate Agent unless such Exchange Rate Agent is an
affiliate of the Issuer) for the purchase by the quoting dealer of U.S. dollars
for the Specified Currency for settlement on such payment date in the amount of
the Specified Currency payable in the absence of such an election to such
holder and at which the applicable dealer commits to execute a contract. If
such bid quotations are not available, such payment will be made in the
Specified Currency. All currency exchange costs will be borne by the holder of
this Note by deductions from such payments.

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

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

                                      A-18
<PAGE>

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

DATED:                     , 2000               MORGAN STANLEY DEAN WITTER & CO.

                                                By:
                                                   -----------------------------
                                                    Name:  Alexander C. Frank
                                                    Title: Treasurer

TRUSTEE'S CERTIFICATE
      OF AUTHENTICATION

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

THE CHASE MANHATTAN BANK,
      as Trustee

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

                                      A-19
<PAGE>

                              REVERSE OF SECURITY

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

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

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

     If so indicated on the face of this Note, this Note will be subject to
repayment at the option of the holder on the Optional Repayment Date or Dates
specified on the face hereof on the terms set forth herein. On any Optional
Repayment Date, this Note will be repayable in whole or in part in increments
of $1,000 or, if this Note is denominated in a Specified Currency other than
U.S. dollars, in increments of 1,000 units of such Specified Currency (provided
that any

                                      A-20
<PAGE>

remaining principal amount hereof shall not be less than the minimum authorized
denomination hereof) at the option of the holder hereof at a price equal to
100% of the principal amount to be repaid, together with interest accrued and
unpaid hereon to the date of repayment. For this Note to be repaid at the
option of the holder hereof, the Paying Agent must receive at its corporate
trust office in the Borough of Manhattan, The City of New York, at least 15 but
not more than 30 days prior to the date of repayment, (i) this Note with the
form entitled "Option to Elect Repayment" below duly completed or (ii) a
telegram, telex, facsimile transmission or a letter from a member of a national
securities exchange or the National Association of Securities Dealers, Inc. or
a commercial bank or a trust company in the United States setting forth the
name of the holder of this Note, the principal amount hereof, the certificate
number of this Note or a description of this Note's tenor and terms, the
principal amount hereof to be repaid, a statement that the option to elect
repayment is being exercised thereby and a guarantee that this Note, together
with the form entitled "Option to Elect Repayment" duly completed, will be
received by the Paying Agent not later than the fifth Business Day after the
date of such telegram, telex, facsimile transmission or letter; provided, that
such telegram, telex, facsimile transmission or letter shall only be effective
if this Note and form duly completed are received by the Paying Agent by such
fifth Business Day. Exercise of such repayment option by the holder hereof
shall be irrevocable. In the event of repayment of this Note in part only, a
new Note or Notes for the amount of the unpaid portion hereof shall be issued
in the name of the holder hereof upon the cancellation hereof.

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

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

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

     This Note, and any Note or Notes issued upon transfer or exchange hereof,
is issuable only in fully registered form, without coupons, and, if denominated
in U.S. dollars, unless otherwise stated above, is issuable only in
denominations of U.S. $1,000 and any integral multiple of U.S. $1,000 in excess
thereof. If this Note is denominated in a Specified Currency other than U.S.

                                      A-21
<PAGE>

dollars, then, unless a higher minimum denomination is required by applicable
law, it is issuable only in denominations of the equivalent of U.S. $1,000
(rounded to an integral multiple of 1,000 units of such Specified Currency), or
any amount in excess thereof which is an integral multiple of 1,000 units of
such Specified Currency, as determined by reference to the noon dollar buying
rate in The City of New York for cable transfers of such Specified Currency
published by the Federal Reserve Bank of New York (the "Market Exchange Rate")
on the Business Day immediately preceding the date of issuance.

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

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

                                      A-22
<PAGE>

     The Senior Indenture provides that (a) if an Event of Default (as defined
in the Senior Indenture) due to the default in payment of principal of,
premium, if any, or interest on, any series of debt securities issued under the
Senior Indenture, including the series of Senior Medium-Term Notes of which
this Note forms a part, or due to the default in the performance or breach of
any other covenant or warranty of the Issuer applicable to the debt securities
of such series but not applicable to all outstanding debt securities issued
under the Senior Indenture shall have occurred and be continuing, either the
Trustee or the holders of not less than 25% in principal amount of the debt
securities of each affected series (voting as a single class) may then declare
the principal of all debt securities of all such series and interest accrued
thereon to be due and payable immediately and (b) if an Event of Default due to
a default in the performance of any other of the covenants or agreements in the
Senior Indenture applicable to all outstanding debt securities issued
thereunder, including this Note, or due to certain events of bankruptcy or
insolvency of the Issuer, shall have occurred and be continuing, either the
Trustee or the holders of not less than 25% in principal amount of all debt
securities issued under the Senior Indenture then outstanding (treated as one
class) may declare the principal of all such debt securities and interest
accrued thereon to be due and payable immediately, but upon certain conditions
such declarations may be annulled and past defaults may be waived (except a
continuing default in payment of principal (or premium, if any) or interest on
such debt securities) by the holders of a majority in principal amount of the
debt securities of all affected series then outstanding.

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

     The Senior Indenture permits the Issuer and the Trustee, with the consent
of the holders of not less than a majority in aggregate principal amount of the
debt securities of all series issued under the Senior Indenture then
outstanding and affected (voting as one class), to execute supplemental
indentures adding any provisions to or changing in any manner the rights of the
holders of each series so affected; provided that the Issuer and the Trustee
may not, without the consent of the holder of each outstanding debt security
affected thereby, (a) extend the final maturity of any such debt security, or
reduce the principal amount thereof, or reduce the rate or

                                      A-23
<PAGE>

extend the time of payment of interest thereon, or reduce any amount payable on
redemption or repayment thereof, or change the currency of payment thereof, or
modify or amend the provisions for conversion of any currency into any other
currency, or modify or amend the provisions for conversion or exchange of the
debt security for securities of the Issuer or other entities (other than as
provided in the antidilution provisions or other similar adjustment provisions
of the debt securities or otherwise in accordance with the terms thereof), or
impair or affect the rights of any holder to institute suit for the payment
thereof without the consent of the holder of each debt security so affected or
(b) reduce the aforesaid percentage in principal amount of debt securities the
consent of the holders of which is required for any such supplemental
indenture.

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

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

                                      A-24
<PAGE>

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

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

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

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

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

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

                                      A-25
<PAGE>

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

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

                                      A-26
<PAGE>

                                 ABBREVIATIONS

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

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

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

         Under Uniform Gifts to Minors Act______________________________________
                                                           (State)

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

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

                                      A-27

<PAGE>

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

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

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

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

Dated:__________________________________

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

                                      A-28
<PAGE>

                           OPTION TO ELECT REPAYMENT

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

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

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

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

                                      A-29<PAGE>
                          MANAGEMENT SERVICES AGREEMENT

         This MANAGEMENT SERVICES AGREEMENT (the "Agreement") is entered into on
_____, 2000 (the "Effective Date"), by and between GREENHOST, INC, a Delaware
corporation ("Owner"), and VILLAGE FARMS, L.P., a Delaware limited partnership
("Contractor"). Owner and Contractor sometimes are referred to herein
individually as a "Party" and collectively as the "Parties".

                                    RECITALS

         WHEREAS, Owner and Village Farms of Virginia, Inc., a
predecessor-in-interest to Contractor, entered into that certain Operating
Agreement dated as of November 14, 1997, as amended, (the "Operating
Agreement"), pursuant to which Owner leased to Contractor and Village Farms of
Virginia, Inc. leased and operated a greenhouse facility located at 259 Kings
Highway, King George, Virginia 22485;

         WHEREAS, Owner terminated the Operating Agreement pursuant to a letter
dated June 23, 2000; and

         WHEREAS, Owner will operate a greenhouse facility (as more particularly
described in Exhibit A which is attached hereto, the "Facility") and will farm
certain crops at the Facility; and

         WHEREAS, Owner desires to obtain services (which are more particularly
described below) from Contractor in connection with Owner's greenhouse farming
of certain crops at the Facility and Contractor is able and willing to render
the Services to Owner in accordance with, and subject to, the terms and
conditions of this Agreement.

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

                                    ARTICLE 1
                              PROVISION OF SERVICES

         1.1 Contractor agrees to provide to Owner the following services in
connection with Owner's greenhouse farming of Owner's crops at the Facility
(collectively the "Services"):

                                       1
<PAGE>
         (i) General management and advice in connection with Owner's business
of greenhouse farming of crops at the Facility and all services necessary or
incidental thereto;

         (ii) Removal of all plants and rubbish from last season's crop to be
completed on or before the Effective Date;

         (iii) Completion of the sowing of Owner's 2000 to 2001 crop (the
"Current Season's Crop") in accordance with the Operating Plan;

         (iv) Sowing, growing (including, without limitation, all nourishment,
fertilizer and pesticide application and care for the Current Season's Crop),
harvesting, packaging and marketing of the Current Season's Crop;

         (v) Procurement for the account of Owner of all necessary services,
supplies, materials, chemicals and equipment necessary to sow, grow, harvest,
package and market the Current Season's Crop or to maintain or repair the
Facility to the extent contemplated by this Agreement. In procuring such
services, supplies, materials, chemicals and equipment, Contractor shall obtain
from all vendors the best warranties, indemnities, and guarantees that are
commercially available on reasonable terms; except, however, if the procurement
of any such warranty, indemnity or guarantee requires an additional payment,
Contractor shall first obtain prior written approval therefor from Owner;

         (vi) Maintenance and repair of the Facility (as more particularly
described in Article 2 below);

         (vii) Removal from the Facility and proper disposal of all plants and
rubbish resulting from the sowing, growing, harvesting, packaging and marketing
of the Current Season's Crop;

         (viii) Provision of all required tools, equipment and labor (including,
without limitation, the tools and equipment listed on Exhibit B attached hereto)
necessary to perform properly the Services;

         (ix) Assisting Owner with the preparation of the Budget, the Operating
Plan and the Marketing Plan with regard to the sowing, growing, harvesting,
packaging and marketing of the Current Season's Crop including, without
limitation, advice with regard to the preparation and analyses of financial
plans and statements, operating reports and the accounting systems and
procedures; and

         (x) Provision of all other activities necessary or incidental to the
performance of the Services.

         1.2 Throughout the term of this Agreement, Contractor agrees to use the
Contractor's employees listed on the attached Exhibit C (the "Key Employees"),
among others, to perform the Services described in this Article 1 to the extent
that such Key Employees remain employed by Contractor. In the event any such Key
Employee ceases to be employed by the Contractor, Contractor shall replace such
Key Employee with a person whom shall be reasonably satisfactory to Owner.

                                       2
<PAGE>

         1.3 As soon as practical after the Effective Date, Owner shall provide
to Contractor a budget (the "Budget"), an operating plan (the "Operating Plan")
and, when appropriate, a marketing plan (the "Marketing Plan") for the sowing,
growing, harvesting, packaging and marketing of the Current Season's Crop. The
Operating Plan and Budget will include the estimated production and harvesting
schedule for the crop and all estimated costs and expenses to be incurred for
the sowing, growing, harvesting, packaging and marketing of the Current Season's
Crop including, without limitation, estimated maintenance costs for the
Facility. The Budget, Operating Plan and Marketing Plan will be based on the
entire crop cycle, but will be broken out to cover monthly periods. The Owner
reserves the right, at any time and from time to time, to revise, in any way as
Owner deems necessary or appropriate, the Budget, Operating Plan or Marketing
Plan. Unless otherwise specifically requested by Owner, Contractor shall perform
the Services in accordance with the Budget, the Operating Plan and the Marketing
Plan. In the event (i) the Owner revises in a material way the Budget, Operating
Plan, or Marketing Plan (the "Material Revision"); and (ii) the Material
Revision results in a material increase in the cost to Contractor of performing
Contractor's obligations pursuant hereto (the "Material Increase"); and (iii)
the Material Increase is not already reimbursable by the Owner to the Contractor
pursuant to the terms of this Agreement, Contractor shall notify the Owner in
writing of such and the Owner shall then, within a reasonable time in its sole
discretion, decide whether to (x) continue with the Material Revision and
reimburse Contractor for the amount of the Material Increase as agreed at that
time by the Parties in writing or (y) rescind or revise the Material Revision so
the Material Revision does not result in a Material Increase. The Owner shall
communicate such decision to the Contractor in writing. In the event the Owner
revises the Material Revision so that it does not result in a Material Increase,
the Contractor shall perform the Services in accordance with the Material
Revision without reimbursement therefor.

         1.4 Notwithstanding any other provision of this Agreement, title to the
seeds, plants, crops and produce related to the Current Season's Crop and
profits resulting therefrom shall at all times remain with Owner and not with
the Contractor.

         1.5 Contractor shall obtain and maintain all applicable governmental
approvals and permits necessary to perform the Services and shall perform the
Services at all times in compliance with such approvals and permits as well as
in compliance with all applicable laws, rules and regulations.

         1.6 Contractor shall remove promptly all supplies and packaging
materials located at the Facility on the Effective Date except for those
supplies and packaging materials to be used by Contractor in connection with
performing the Services pursuant hereto. In the event Contractor uses any such
supplies or packaging materials in connection with Owner's greenhouse farming
business, the cost of such supplies and packaging materials so used shall
constitute an expense that Owner will pay to Contractor in accordance with the
terms and conditions of this Agreement.

                                       3
<PAGE>
         1.7 Contractor shall assist Owner to accept and to use thermal energy
produced by the Birchwood power station for heating purposes that are consistent
with Good Business Practices (as defined in Section 7.1 below). Without limiting
the generality of the foregoing, Contractor shall assist Owner to accept
delivery of, and to use, sufficient steam based on a per hour basis for heating
purposes to allow the Birchwood power station to maintain the status of a
"Qualifying Facility" within the meaning of the Public Utility Regulatory
Policies Act of 1978, as may be amended from time to time, on an annual basis as
described in the Application of Birchwood Power Partners, L.P. Certification of
Qualifying Status as a Cogeneration Facility filed with the Federal Energy
Regulatory Commission on June 29, 1993, and all amendments thereto. In the event
that Contractor believes that such use of such thermal energy is not consistent
with Good Business Practices, Contractor shall notify Owner immediately in
writing of such belief including an explanation of the reasons for such belief.
If Owner agrees that such use of such thermal energy is not consistent with Good
Business Practices and nonetheless continues with such use of such thermal
energy, Contractor shall not be liable for any loss or damage to the Current
Season's Crop that is solely and directly due to such continued use of such
thermal energy.

         1.8 Contractor acknowledges that Owner owns and operates the Facility
and Contractor shall not directly or indirectly create, incur, assume or permit
to exist any lien or encumbrance (other than any lien or encumbrance created by
or as a result of an act or omission of Owner) whatsoever on or with respect to
the Facility or to the crops, title thereto or any interest therein. Contractor
shall promptly, at its own expense, take such action as may be necessary to duly
discharge (or bond in a manner satisfactory to Owner) any lien or encumbrance
that may arise at any time as a result of Contractor's acts or omissions.
Contractor further agrees that it shall pay or cause to be paid on or before the
time or times prescribed by law (after giving effect to any applicable grace
period) any taxes, assessments, fees or charges imposed on Contractor (or any
affiliated or related group of which Contractor is a member) under the laws of
any jurisdiction that, if unpaid, might result in any lien or encumbrance
prohibited by this Agreement; provided, however, that no such tax, assessment,
fee or charge need be paid if being contested in good faith by appropriate
proceedings.

         1.9 Contractor shall be responsible for initiating, maintaining,
directing and supervising all safety precautions and programs in connection with
its performance of the Services. Notwithstanding and without limiting the
generality of the foregoing, Contractor and its employees shall comply at all
times with Owner's safety policies and practices communicated to Contractor from
time to time. In performing the Services pursuant hereto, Contractor shall take
all reasonable precautions to prevent (i) damage to the Facility; (ii) injury to
persons (whether such persons are employees of the Contractor, employees of
Owner, employees of vendors or employees of purchasers of the crops); and (iii)
damage to all equipment and property of Owner and all other property located at
the Facility.

         1.10 During the term hereof, Contractor shall have the limited,
non-exclusive right to use the cooling facilities located on the Facility for
the temporary storage of products owned by Contractor if, and for so long as,
(i) such use does not in any way interfere with Owner's farming business at the
Facility or with Contractor fully and properly performing the Services in

                                       4
<PAGE>

accordance herewith; and (ii) Contractor segregates at all times such products
from products owned by Owner; and (iii) Contractor clearly identifies such
segregated products as products owned by Contractor; and (iv) Contractor pays
the Owner the amounts specified in Section 1.11 below.

         1.11 In the event Contractor desires to use such cooling facilities as
provided for in Section 1.10 above, (i) Contractor shall pay to Owner a handling
fee equal to Twenty Four Cents ($0.24) for each box placed into temporary
storage PLUS Ten Cents ($0.10) for each box for each day thereafter while in
temporary storage PLUS, a sum equal to Owner's costs for the time and materials
required to repack the products if any pallet must be broken down in any way and
any of Contractor's products must be repackaged; (ii) Owner shall prepare and
send to Contractor an invoice setting forth the charges for such temporary
storage; and (iii) Contractor shall pay the amount of such invoice to Owner
within thirty (30) days of receipt thereof.

         1.12 Except for the temporary use of Owner's cooling facilities as
provided for in Section 1.10 above, Contractor shall not use the Facility, or
any part thereof, in any way for any purpose other than to perform the Services.

         1.13 Owner shall arrange for and make available at the Facility in
accordance with the Budget and Operating Plan thermal energy, electricity,
water, telephone and sewer services necessary for Contractor to perform the
Services in accordance with this Agreement.

                                    ARTICLE 2
                       MAINTENANCE AND REPAIR OF THE PLANT

         2.1 As part of the provision of the Services described in Article 1,
Contractor shall at all times maintain, service and repair the Facility and
store all fertilizers and pesticides used in connection with the performance of
the Services in accordance with (i) prudent commercial maintenance practices,
including all manufacturers' warranty requirements to the extent such
requirements are made known to the Contractor; (ii) Owner's operating policies
and practices for the Facility that are made known to the Contractor; (iii) all
applicable requirements of law and of any court and of any governmental
authority (including without limitation all zoning, environmental protection,
pollution, sanitary, occupation, health and safety laws, and all environmental
requirements); and (iv) all requirements contained in permits and licenses
relating to the Facility in effect from time to time during the term of this
Agreement.

         2.2 In connection with and in addition to Contractor's general
obligation to maintain, service and repair the Facility as provided for in
Section 1.1 and in Section 2.1, Contractor shall (i) maintain the Facility in
good operating condition, ordinary wear and tear excepted; (ii) cause the
Facility to continue to have the capacity and functional ability to produce
crops on a continuing basis in normal commercial operation and in a commercially
efficient manner; and (iii) comply with the standards imposed by any insurance
policies in effect at any time with respect to the Facility or any part thereof.

                                       5
<PAGE>

         2.3 Owner shall bear the cost of any repair or replacement to the
Facility that may be necessary or appropriate to keep the Facility in good
operating condition as Owner may determine in its sole discretion unless,
however, the reason for such repair is due to an act or omission of Contractor
or any of Contractor's employees in which case Contractor shall bear the cost of
any such repair or replacement.

         2.4 Contractor shall not make at any time any alteration to the
Facility unless specifically approved by Owner in writing in advance.

                                    ARTICLE 3
                                TRADEMARK LICENSE

         3.1 In consideration of a portion of the Fee payable by Owner to
Contractor pursuant hereto, Contractor hereby irrevocably grants to Owner a
non-exclusive, non-transferable license to use all of Contractor's trademarks
listed on Exhibit D (the "Licensed Marks") in the United States for the sowing,
growing, harvesting, packaging and marketing of Owner's Current Season's Crop,
or any portion thereof, during the term of this Agreement (and for so long as
any portion of the Current Season's Crop remains to be sold).

         3.2 In addition to, and without limiting or affecting in any way, the
provisions of Article 9 below, Contractor hereby agrees to indemnify and hold
Owner harmless from and against any and all third party claims or demands for
trademark infringement attributable to Owner's use of the Licensed Marks. In the
event Owner becomes aware of any such claim, (i) Owner shall promptly notify
Contractor of any such claim or demand; and (ii) Owner may provide Contractor
with such assistance as may be reasonably required to conduct the defense to or
otherwise respond to such claim; and (iii) the procedures set forth in Section
9.2 below shall apply.

                                    ARTICLE 4
                               OPERATING EXPENSES

         4.1 Owner shall be responsible for the payment of all operating
expenses in connection with the greenhouse farming of the Current Season's Crop
provided that such operating expenses are incurred in accordance with the
approved Budget, Operating Plan and Marketing Plan and in accordance with this
Article 4. For each item of expense to be incurred pursuant to the Budget,
Operating Plan and Marketing Plan, whether such expense is for the procurement
of materials or supplies or otherwise, Contractor shall provide, or cause the
relevant vendor to provide, an invoice that sets forth in reasonable detail, and
with reasonable documentation in support thereof, each such item of expense.
Contractor shall seek to obtain the best payment terms commercially available
for such item of expense. Owner will pay the amount of each invoice that is not
in dispute directly to each such vendor according to its terms.

         4.2 Owner shall have the right to request Contractor to make payments
on behalf of Owner to any vendor for materials, supplies or other expenses to be
incurred to implement the Operating Plan or the Marketing Plan. In the event

                                       6
<PAGE>
Owner wishes Contractor to make any such payment on behalf of Owner (i) Owner
shall make such request in writing; (ii) Contractor shall make such payment to
such vendor on Owner's behalf after receiving, and in accordance with, Owner's
request; and (iii) Owner shall reimburse Contractor for such expense in
accordance with Section 5.2 below if Contractor provides Owner with an invoice
marked "paid" and other reasonable documentation as may be requested by Owner
for any expense. Contractor shall not make any payment on behalf of Owner to any
person or entity unless first requested to do so by Owner in writing pursuant to
this Section 4.2.

         4.3 Contractor shall secure Owner's prior written approval before
incurring any expense that may result in the aggregate expenditures under any
one budget category or line item in the Budget and Operating Plan to exceed the
amount budgeted therefor.

         4.4 Owner shall establish and maintain an account with a bank selected
by Owner in its sole discretion from which Contractor's payroll payment agent
will be authorized to withdraw funds only for the payment of expenses contained
in the Budget for salaries, wages, payroll taxes and employee benefits for
employees of Contractor engaged in providing the Services pursuant to this
Agreement. Contractor may withdraw such funds only to the extent necessary to
compensate its employees for their work for Contractor in connection with
providing the Services pursuant hereto and not for other work or tasks that such
employees may perform for Contractor. (By way of example only, if one-half of a
Contractor's employee's job is in connection with performing the Services,
Contractor may withdraw one-half of the cost of such employee's salary, wages,
payroll taxes and employee benefits from such account and not the full amount of
the cost of such employee's salary, wages, payroll taxes and employee benefits.)
Owner will deposit funds into the account on a bi-monthly basis based on the
amounts in the Budget and Operating Plan for such salaries, wages, payroll taxes
and employee benefits of Contractor's employees for the subsequent two week
period. Contractor shall submit to Owner invoices and other documentation, time
cards, or other payroll records to support the amount of all withdrawals from
the account. Contractor represents and warrants that any money Contractor
withdraws from the account will be used by Contractor solely for the payment of
salaries, wages, payroll taxes and employee benefits for employees of Contractor
engaged in providing the Services pursuant to this Agreement. In the event (i)
the Owner fails to deposit funds into such account to enable Contractor to
withdraw funds sufficient to pay the amounts in the Budget and Operating Plan
for payroll taxes for Contractor's employees engaged in providing the Services
pursuant to this Agreement and (ii) any officer of the Contractor becomes
personally liable as a result thereof, the Owner shall indemnify such officer or
officers for any personal liability resulting therefrom for his or their failure
to pay payroll taxes for employees of Contractor engaged in providing the
Services pursuant to this Agreement.

                                    ARTICLE 5
                           INVOICING AND COMPENSATION

         5.1 As full and complete compensation for the Services rendered
pursuant to this Agreement and for the trademark license set forth in Article 3
above, subject to Section 12.3 below, Owner shall pay to Contractor, and
Contractor shall accept, a total fee (the "Fee") equal to Five Hundred Thousand
Dollars ($500,000.00). Owner shall pay the Fee to Contractor in twelve (12)
equal consecutive monthly installments in arrears on the last business day of
each month during the term of this Agreement.

                                       7
<PAGE>

         5.2 Unless otherwise agreed by the Parties, for the first twelve (12)
months of the term of this Agreement, Contractor shall submit an invoice to
Owner setting forth one-twelfth of the total Fee and any claim for reimbursable
expenses associated with a particular month on or before the 5th day of the
succeeding month. Thereafter, Contractor shall submit an invoice to Owner
setting forth any claim for reimbursable expenses associated with a particular
month on or before the 5th day of the succeeding month. Owner shall pay all
amounts not in dispute contained on each such invoice on the last business day
of that month. Each invoice shall set forth in reasonable detail a description
of the nature of the Services and of the reimbursable expenses.

         5.3 For each sale of produce from the crops, Contractor shall prepare
an invoice in the name of Owner, as seller, and deliver such invoice to Owner.
After preparation and delivery of each such invoice, Contractor shall have no
further responsibility for handling, processing or collecting of the accounts
receivables, proceeds from the sales of crops or any other funds. All such
proceeds and funds shall be for Owner's account and will be deposited directly
by Owner into its account. Contractor shall at no time have access or be
authorized to access or transact in such account of Owner. Owner agrees to give
notice to Contractor prior to proceeding with collecting debts that are past due
from customers of Owner that have made purchases of the Current Season's Crop.

         5.4 For any reason whatsoever, in the event either Party hereto comes
into the possession of any instrument, negotiable instrument, check, draft,
letter of credit, bank advice, cash or other property due to, owned by or for
the benefit of the other Party, such Party shall (i) notify the other Party of
such fact immediately; (ii) hold such instrument, negotiable instrument, check,
draft, letter of credit, bank advice, cash or other property in trust for the
other Party as a fiduciary of the other Party; and (iii) promptly, but in no
event later than five (5) business days, deliver safely any such instrument,
negotiable instrument, check, draft, letter of credit, bank advice, cash or
other property to the other Party.

         5.5 For avoidance of doubt, Contractor shall not receive, and shall not
be entitled to receive, any payment whatsoever from Owner in connection with or
arising out of this Agreement other than, and subject to the other provisions of
this Agreement, the Fee, the reimbursement of expenses pursuant to and in
accordance with Section 4.2 above and the deposit of the amounts specified in
Section 4.4 above and any amount required to be delivered pursuant to Section
5.4 above.

                                    ARTICLE 6
                     COOPERATION AND ACCESS TO THE FACILITY

         6.1 Owner shall appoint in writing a representative or representatives
to liaise with Contractor in relation to Contractor's performance of the
Services. Contractor shall consult and cooperate with such representative or
representatives in the performance of the Services. The instructions, requests
and decisions of such representative or representatives will be binding on Owner

                                       8
<PAGE>

and Contractor shall follow such instructions, requests and decisions. In
addition, Owner may designate one or more of its employees to assist with the
repairs and maintenance of the Facility and with the bookkeeping or auditing of
Contractor's performance of the Services or of Owner's greenhouse farming
business or for other reasons designated by Owner. Contractor shall cooperate
fully with Owner's representatives and designees at all times during the term
hereof in connection with Contractor 's performance of the Services.

         6.2 Owner shall provide Contractor with such reasonable cooperation as
is necessary or appropriate to enable Contractor and Contractor's employees to
perform the Services. Without limiting the foregoing, Contractor and its
employees who are to perform the Services shall have reasonable access to the
Facility during normal operating hours as Owner determines necessary, advisable
or appropriate for or in connection with the provision of any or all of the
Services.

                                    ARTICLE 7
                 STANDARD OF CONDUCT; CONTRACTOR REPRESENTATIONS

         7.1 Contractor shall perform the Services (i) in a workmanlike manner;
(ii) in strict accordance with all applicable laws, rules and regulations as
provided for in Section 1.5 above; and (ii) in accordance with Good Business
Practices. "Good Business Practices" means the latest prudent practices, methods
and acts that are commonly used in the greenhouse farming industry to perform
(or fulfill the activities comprising) the Services and any practices, methods
or acts which, in the exercise of reasonable judgment in light of the facts
known at the time (or those which, with the exercise of due diligence, should
have been known), could have been expected to accomplish the desired result
consistent with good operating practices, reliability, safety and expedition.
Whether any particular practice, method or act constitutes "Good Business
Practices" shall be judged in light of the facts known (or those which, with the
exercise of due diligence, should have been known) at the time such particular
practice, method or act was performed or taken.

         7.2 In performing the Services, Contractor shall (i) use its best
efforts to maximize the value of Owner's crop; (ii) ensure that the Facility is
used to its fullest productive capacity; (iii) obtain the highest price
available in the market for Owner's crop and for Owner's propagated plants; and
(iv) market Owner's crop and propagated plants using the same degree of effort
and diligence as Contractor uses for its own crops, plants and products.

         7.3 In addition to representations and warranties made and given by
Contractor in other provisions of this Agreement, Contractor represents and
warrants that (i) it is duly organized, validly existing and in good standing
under the laws of the State of Delaware (ii) it has the power and authority and
the legal right to own its property and to conduct the business in which it is
currently engaged; (iii) to its knowledge, it is in compliance in all material
respects with all statutes, ordinances, laws, rules, regulations, judgments,
orders and decrees of any court or other governmental or regulatory authority by
which it is bound and to the extent that it is not in compliance such
non-compliance does and will not affect in any way Contractor's ability to
perform the Services in accordance with this Agreement; (iv) it has the power

                                       9
<PAGE>
and authority to make, execute and deliver this Agreement; (v) it has taken all
action necessary to authorize the execution, delivery and performance of this
Agreement and has duly executed and delivered this Agreement; (vi) no consent or
authorization of, approval by, filing with, notice to or other act by or in
respect of any governmental authority or other person or entity is required in
connection with the execution, delivery, performance, validity or enfoceability
of this Agreement which has not already been obtained; (vii) this Agreement is a
legal, valid and binding obligation of Contractor, enforceable against
Contractor in accordance with its terms, subject to the effect of bankruptcy or
other similar laws relating to creditors' rights generally and to the effect of
general equitable principles; (viii) the execution, delivery and performance of
this Agreement will not violate the limited partnership agreement of Contractor
or any law or regulation or determination of any court or arbitrator applicable
to Contractor; (ix) Contractor is not subject to any pending, or to its
knowledge threatened, litigation or arbitration proceeding that, if determined
adversely, would have a material adverse effect on its ability to perform its
obligations pursuant to this Agreement; and (x) the execution, delivery and
performance by Contractor of this Agreement will not constitute a default under
any material contract or agreement to which Contractor is a party.

                                    ARTICLE 8
                                    INSURANCE

          8.1     The Contractor shall maintain the following:

                  (i) comprehensive commercial general liability and property
         damage insurance (including, but not limited to, coverage for any
         construction on or about the premises) covering the legal liability of
         Contractor against all claims for any bodily injury or death of persons
         and for damage to or destruction of property occurring on, in or about
         the Facility and the adjoining streets, sidewalks and passageways and
         arising out of the use of the Facility by Contractor. Coverage provided
         by the foregoing insurance policy shall include, without limitation,
         all of the insurance commonly referred to by the insurance industry as:
         Premises/Operations Liability; Products/Completed Operations Liability;
         Owners and Contractors Protective Liability; Blanket Contractual
         Liability; Broad Form Property Damage Liability; Personal Injury,
         Stop-Gap or Employers' Contingent Liability; Explosion, Collapse and
         Underground Liability; Automobile Liability, including coverage for
         Owned, Non-Owned, Hired, or Borrowed Vehicles and "Mobile Equipment".
         The foregoing insurance shall apply as primary insurance, irrespective
         of any insurance which Owner or any other party may carry and shall
         include a "Cross Liability" clause (Severability of Interests). The
         foregoing insurance shall have a combined single limit of not less than
         Five Million Dollars ($5,000,000.00), with separate aggregate limits
         for product and general liability, which policy shall be written on an
         occurrence basis;

                  (ii) (a) workers' compensation insurance or occupational
         disability benefits insurance (in at least the statutory amounts) and
         such other forms of insurance which Contractor is required by law to

                                       10
<PAGE>

         maintain or cause to be maintained, covering loss resulting from
         injury, sickness, disability or death of the employees of Contractor
         and (b) employers' liability insurance in an amount not less than Five
         Hundred Thousand Dollar ($500,000.00) single limit; and

                  (iii) comprehensive automobile liability insurance against
         claims of personal injury (including bodily injury and death) and
         property damage covering all owned, leased, non-owned and hired
         vehicles with a One Million Dollar ($1,000,000.00) minimum limit per
         occurrence for combined bodily injury and property damage liability.

         8.2 All insurance policies procured in accordance with Section 8.1
shall be (i) maintained with Florists Mutual Insurance Company or any other
insurers with a Best rating of A minus or better and a Best size rating of IX or
better (except for policies underwritten by Lloyds of London and approved
English companies acceptable to Owner) approved by Owner and not disqualified
from insuring risks in Virginia; and (ii) shall be subject to (a) exclusions of
the sort existing in the insurance policies in effect on the Effective Date and
(b) such deductible amounts and retentions as shall not exceed Twenty-five
Thousand Dollars ($25,000.00) specified with respect to such policies.

         8.3 Insurance policies maintained by Contractor pursuant to Section 8.1
hereof shall:

                  (i) except for workers' compensation insurance, specify
         Birchwood Power Partners, L.P., Owner, and Owner's affiliates (and such
         others as Owner shall from time to time designate) as additional
         insured (the "Additional Insured"), as their respective interests may
         appear;

                  (ii) except in the case of public liability insurance and
         workers' compensation insurance, provide that all losses or occurrences
         shall be adjusted with Contractor and Owner, unless an event of default
         shall have occurred and be continuing, in which case such loss or
         occurrence shall be adjusted with Owner, and payable (a) in respect of
         payments not exceeding Twenty-five Thousand Dollars ($25,000.00),
         provided no default or event of default shall have occurred or be
         continuing, to the Contractor, and (b) in all other circumstances, to
         Owner;

                  (iii) include effective waivers by the insurer of all claims
         for insurance premiums or commissions or (if such policies provide for
         the payment thereof) additional premiums or assessments against any
         Additional Insured;

                  (iv) provide that in respect of the interests of the
         Additional Insured, such policies shall not be invalidated by any
         action or inaction of Contractor or any other person and shall insure
         the Additional Insured regardless of, and any claims for the losses
         shall be payable notwithstanding:

                                       11
<PAGE>

                           (a) the occupation or use of the Facility for
                  purposes more hazardous than permitted by the terms of the
                  policy;

                           (b) any foreclosure or other proceeding or notice of
                  sale relating to all or any portion of the Facility; or

                           (c) any change in the title to or ownership of all or
                  any portion of the Facility;

                  (v) provide that such insurance shall be primary insurance and
         that the insurers under such insurance policies shall be liable under
         such policies without right of contribution from any other insurance
         coverage effected by or on behalf of any Additional Insured under any
         other insurance policies covering a loss that is also covered under the
         insurance policies maintained by Contractor pursuant to this Article 8
         and shall expressly provide that all provisions thereof, except the
         limits of liability (which shall be applicable to all insureds as a
         group) and liability for premiums, shall operate in the same manner as
         if there were a separate policy covering each insured;

                  (vi) provide that any cancellation thereof or material adverse
         change therein shall not be effective as to each of the Additional
         Insured until at least sixty (60) days after receipt by such Additional
         Insured of written notice thereof;

                  (vii) waive any right of subrogation of the insurers against
         the Additional Insured, and waive any right of the insurers to any
         setoff or counterclaim or any other deduction, whether by attachment or
         otherwise, in respect of any liability of the Additional Insured; and

                  (viii) be reasonably satisfactory to Owner in all other
         material respects.

         8.4 Upon execution hereof, Contractor shall deliver to each of the
Additional Insured copies of all policies of insurance required hereby and
certificates of insurance evidencing the provisions described in Section 8.3 (i)
hereof executed by the insurer or by its duly authorized agent, and a
certification from the Contractor's insurance agent or broker to the effect that
all premiums required to have been paid have been paid in full.

         8.5 No provision of this Agreement shall impose on Owner any duty or
obligation to verify the existence or adequacy of the insurance coverage
maintained by Contractor nor shall Owner be responsible for any representation
or warranty made by or on behalf of Contractor to any insurance company or
underwriter.

                                       12
<PAGE>
                                    ARTICLE 9
                                 INDEMNIFICATION

         9.1 Contractor agrees to indemnify, hold harmless and defend Owner, its
stockholders, its affiliates and their respective officers, directors, employees
and agents (the "Indemnified Parties") from and against any and all liabilities,
actions, claims, demands, damages (including, without limitation, damage to
property and injuries to or death of persons) losses and expenses (including,
without limitation, attorney fees and other legal expenses) of whatsoever kind
and nature resulting from or in any way attributable to or in connection with
(i) claims of third parties arising out of the performance or nonperformance of
the Services or (ii) any breach by Contractor of any provision hereof; except
that liabilities, actions, claims, demands, damages, losses or expenses
attributable to the gross negligence or willful misconduct of any of the
Indemnified Parties shall be excluded from Contractor's obligations under this
Section 9.1.

         9.2 Owner shall promptly notify Contractor of any liability, action,
claim, demand, damage, loss, or expense of which Owner has actual knowledge and
against which Owner expects an Indemnified Party to be indemnified pursuant to
Section 9.1. Thereafter, Contractor may at its own expense, upon notice to
Owner, employing counsel reasonably acceptable to Owner, defend or participate
in the defense of such action or claim or any negotiation for settlement of such
action or claim, provided that unless Contractor proceeds promptly and in good
faith to pay or defend such action or claim, Owner shall have the right (but not
the obligation), in good faith, upon notice to Contractor, to pay, settle,
compromise or proceed to defend any such action or claim without the further
participation by Contractor. In the event Contractor assumes the defense of any
such action, the Indemnified Party shall have the right to employ separate
counsel in such action and participate therein, but the fees and expenses of
such counsel shall be at the expense of such Indemnified Party, unless (i) the
employment of such counsel has been specifically authorized by the Contractor;
or (ii) the named parties to such action (including any impleaded parties)
include both such Indemnified Party and Contractor and the representation of
such Indemnified Party and Contractor by the same counsel would be inappropriate
under applicable standards of professional conduct due to actual or potential
conflicting interests between them; or (iii) the counsel employed by Contractor
has advised such Indemnified Party, in writing, that such counsel's
representation of such Indemnified Party would be likely to involve such counsel
in representing differing interests which could adversely affect either the
judgment or loyalty of such counsel to such Indemnified Party whether it be a
conflicting, inconsistent, diverse or other interest (in which case Contractor
shall not have the right to assume the defense of such action on behalf of such
Indemnified Party. Contractor will immediately pay (or reimburse Owner, as the
case may be) any payments, settlements, compromises, judgments, costs or
expenses made or incurred by Owner in or resulting from the pursuit by Owner of
such right. If any judgment is rendered against Owner in any action defended by
Contractor or from which Owner is otherwise entitled to indemnification under
the terms of this Agreement, or any lien attaches to the assets of Owner in
connection therewith, Contractor immediately upon such entry or attachment shall
pay the judgment in full or discharge any such lien unless, at its expense and
direction, appeal shall be taken under which the execution of the judgment or
satisfaction of the lien is stayed. If and when a final and unappealable
judgment is rendered against Owner in any such action, Contractor shall
forthwith pay such judgment or discharge such lien prior to the time that Owner
would be legally held to do so.

                                       13
<PAGE>

         9.3 Promptly after obtaining knowledge thereof, Contractor shall give
prompt written notice to Owner of each incident likely to result in (i) damages
or claims for damages to person or property against Contractor or any other
person with respect to Contractor's performance of the Services; or (ii) a
violation of any law or regulation. Such notice shall include information as to
the time, place and nature of such incident, the names and addresses of the
persons and parties involved, any persons injured, witnesses and owners of any
property damaged and such other information as may be known to Contractor. In
addition, upon request from Owner, Contractor shall furnish Owner promptly with
copies of all correspondence, papers, notices and documents whatsoever received
by, or in the possession of Contractor, in connection with such incident.

                                   ARTICLE 10
                            LIMITATIONS OF LIABILITY

         10.1 Notwithstanding any other provision of this Agreement, Owner's
total liability to Contractor for all acts and omissions of Owner, its
employees, subcontractors, agents, representatives and designees including,
without limitation, liability arising out of contract, tort (including, without
limitation, negligence, gross negligence and intentional misconduct), strict
liability or any other cause or form of action whatsoever, shall not exceed the
Fee paid to Contractor under this Agreement.

         10.2 Under no circumstances shall an affiliate of Owner be liable or
responsible to Contractor for obligations or liabilities arising from this
Agreement or otherwise, and Contractor hereby expressly waives any and all
claims against such affiliates of Owner now and in the future based on such
obligations or liabilities.

         10.3 Nothing in this Agreement, express or implied, shall be construed
to create any interest, beneficial or otherwise, for any third party.

                                   ARTICLE 11
                       INDEPENDENT CONTRACTOR RELATIONSHIP

         11.1 The Parties acknowledge and agree that Contractor's relationship
with Owner hereunder shall be that of an independent contractor, and under no
circumstances shall either Party or any of its employees or agents be deemed to
be employees, partners, agents, or joint venturers of the other Party. At all
times during the term hereof, the employees of Contractor and the method of
achieving the performance of the Services shall be under the exclusive
direction, charge and control of Contractor and shall not be subject to the
direction, control or supervision of Owner. With respect to all employees of
Contractor engaged in performing the Services, Contractor shall, and Contractor
represents and warrants to Owner that it will, (i) make all payments of any kind
or character required by law to be made by an employer; (ii) make all
withholdings and deductions required by law to be made by an employer; (iii) and
does make all employment decisions including, without limitation, decisions
concerning hiring, termination, promotion, raises and employee benefits; and
(iv) comply with all applicable laws, rules and regulations in regard of such
employees of Contractor.

                                       14
<PAGE>

         11.2 Neither Party shall maintain, hold out, represent, state or imply
to any other individual or entity that any relationship other than an
independent contractor relationship exists between the Parties. Except as
expressly provided for herein to the contrary and other than for purposes of
Section 1.1 (v) above, neither Party nor any of its employees or agents shall
have any power or authority to bind, or enter into agreements on behalf of, or
otherwise create any debts or liabilities for or on behalf of the other Party.

                                   ARTICLE 12
                              TERM AND TERMINATION

         12.1 Unless sooner terminated in accordance with the provisions of this
Agreement, the term of this Agreement shall commence as of the Effective Date
and shall continue until the end of the crop cycle for the Current Season's
Crop, but in no event later than July 31, 2001.

         12.2 Both Owner and Contractor shall have the right to terminate this
Agreement unilaterally upon thirty (30) days prior written notice to the other
Party in the event the other Party refuses to perform or fails to fully perform
or breaches in any way any of its obligations or representations under this
Agreement.

         12.3 In the event this Agreement is terminated in any way whatsoever
prior to its expiration, Owner shall be liable to Contractor only for that
portion of the Fee attributable to the period from the Effective Date until (and
including) the date of such termination. In the event such termination is
effective on a date other than the first day of a month, the amount of the Fee
attributable for such month shall be prorated by dividing one-twelfth of the
total Fee by the number of days in the relevant month and multiplying the
remainder by the total number of days in the relevant month prior to the date of
such termination.

         12.4 Upon the expiration or earlier termination of this Agreement,
Contractor shall remove promptly all of its property from the Facility.

         12.5 In the event Owner elects to continue farming tomatoes at the
Facility beyond the term of this Agreement, Contractor and Owner agree to meet
during the month of January, 2001, at mutually convenient times to discuss in
good faith whether, upon the expiration of this Agreement, to enter into an
arrangement (which would be on mutually agreeable terms and conditions) similar
to that contained in the Operating Agreement; provided, however, that Owner
shall not be precluded in any way from talking to other parties with regard to
the future use of the Facility. Notwithstanding the foregoing sentence, neither
Party shall have any obligation to enter into any such arrangement or agreement
and neither Party shall have any liability to the other as a result of
determining in its sole discretion not to enter into such arrangement or
agreement.

                                   ARTICLE 13
                                  MISCELLANEOUS

         13.1 Governing Law and Submission to Jurisdiction. This Agreement and
the rights of the Parties hereunder shall be governed by and interpreted in
accordance with the laws of the Commonwealth of Virginia (without giving effect

                                       15
<PAGE>

to principles of conflicts of laws which would lead to the application of the
laws of another jurisdiction). Contractor hereby (i) irrevocably submits to the
non-exclusive jurisdiction of the courts of the Commonwealth of Virginia
(including the federal courts having jurisdiction therefor); and (ii) waives any
objection which it may have at any time to the laying of venue of any
proceedings brought in any such court, waives any claim that any such proceeding
has been brought in an inconvenient forum and further waives the right to
object, with respect to any such proceeding, that such court does not have
jurisdiction over such Party. Nothing in this Agreement precludes either Party
from bringing proceedings in any other jurisdiction in order to enforce any
judgment obtained in any proceeding referred to in the preceding sentence nor
will the bringing of such enforcement proceedings in any one or more
jurisdictions preclude the bringing of enforcement proceedings in any other
jurisdiction.

         13.2 Successors and Assignability. Contractor shall not assign, whether
by operation of law or otherwise, any of its rights or delegate any of its
duties under this Agreement, in whole or in part, without the prior written
consent of Owner. Owner shall have the right to assign any of its rights or to
delegate any of its duties under this Agreement without the consent of
Contractor. This Agreement shall be binding upon each of the Parties and their
respective successors and permitted assigns.

         13.3 Severability. If any provision of this Agreement shall be
determined by any court of competent jurisdiction to be invalid or
unenforceable, the remainder of this Agreement, other than that portion
determined to be invalid or unenforceable, shall not be affected thereby, and
each valid provision hereof shall be enforced to the fullest extent permitted by
law.

         13.4 Modifications. No change, amendment or modification of this
Agreement shall be valid or binding upon the Parties unless such change,
amendment or modification is in writing and duly executed by both Parties.

         13.5 Waivers. No provision of this Agreement shall be deemed waived and
no breach shall be deemed excused or consented to unless such waiver or consent
is in writing and signed by the Party claimed to have waived or consented. No
consent by either Party to, or waiver of, a breach by the other, whether express
or implied, shall constitute a consent to, waiver of, or excuse for any
different or subsequent breach.

         13.6 Notice to Lenders. The Contractor shall notify CoBank, ACB,
Village Farms International Finance Association and its other lenders, if any,
(and provide Owner with evidence thereof) that (i) Owner has terminated the
Operating Agreement; (ii) Owner and Contractor have entered into this Agreement
pursuant to which Contractor is providing the Services to Owner; and (iii) title
to the Current Season's Crop, the seeds, plants, crops, produce and profits
resulting therefrom shall at all times remain with Owner.

         13.7 Owner Incentives. Owner may provide in its sole discretion
additional incentives to Contractor for Key Employees aimed at retaining the Key
Employees at the Facility for the term of this Agreement.

                                       16
<PAGE>
         13.8 Reserved.

         13.9 Set off; Cumulative Remedies. Without affecting or limiting in any
way any rights Owner may have at common law or in equity, Owner shall have the
right at any time and from time to time to set off any amount it may owe to
Contractor against any amount that Contractor may owe to Owner other than any
amount owed to Owner as Basic Rent or as Supplemental Rent (as those terms were
defined in the Operating Agreement) under the Operating Agreement. Contractor
shall not set off at any time any amount that it may owe to Owner. To the extent
permitted by, and subject to the mandatory requirements of, applicable law, each
and every right, power and remedy herein specifically given to Owner or
otherwise in this Agreement shall be cumulative and shall be in addition to
every other right, power and remedy herein specifically given or now or
hereafter existing at law, in equity or by statute, and each and every right,
power and remedy whether specifically herein given or otherwise existing may be
exercised from time to time and as often and in such order as may be deemed
expedient by Owner, and the exercise or the beginning of the exercise of any
power or remedy shall not be construed to be a waiver of the right to exercise
at the same time or thereafter any right, power or remedy. No delay or omission
by Owner in the exercise of any right, power or remedy or in the pursuit of any
remedy shall impair any such right, power or remedy or be construed to be a
waiver of any default on the part of Contractor or to be an acquiescence
therein. No express or implied waiver by Owner of any event of default shall in
any way be, or be construed to be, a waiver of any future or subsequent event of
default.

         13.10 Counterparts. This Agreement may be executed in multiple
counterparts, each of which shall be deemed an original hereof but all of which
together shall constitute one and the same instrument. Any signature page of any
such counterpart, or any facsimile transmission thereof, may be attached or
appended to any other counterpart to complete a fully executed and delivered
counterpart of this Agreement. Any facsimile transmission of any signature of a
Party shall be deemed an original and shall bind such Party.

         13.11 Headings. The headings of the various Articles and Sections of
this Agreement are for convenience of reference only and shall not modify,
define or limit any of the terms or provisions hereof.

         13.12 Notices. Unless otherwise specifically provided herein, all
notices, consents, directions, approvals, instructions, requests and other
communications required or permitted by the terms hereof to be given to any
Party shall be in writing and any such notice shall become effective three (3)
business days after being deposited in the mails, certified or registered with
appropriate postage prepaid for first-class mail or, if delivered by hand or in
the form of a facsimile, when received, and shall be directed to the address of
such Party specified above.

         13.13 Release of Certain Claims under the Operating Agreement. If, and
only if, (i) Contractor fully, promptly, diligently and satisfactorily performs
the Services in accordance with the terms and conditions of this Agreement; and
(ii) Contractor does not breach in any way any of the provisions of this
Agreement, Owner will release (in a form to be drafted by, and satisfactory to,
Owner) Contractor (as successor-in-interest to Village Farms of Virginia, Inc.)

                                       17
<PAGE>

only from liability resulting from breaches by Contractor or Village Farms of
Virginia, Inc. of its obligations under the Operating Agreement, except that
such release shall not apply to and Contractor shall not be released from any
liability that may or could result from (x) any claim that may or could be made
by any third party based on any legal or equitable theory of recovery whatsoever
and whether such claim is based on an act or omission of, or breach of any
obligation by, Contractor, Village Farms of Virginia, Inc. or not; or (y) any
claim or demand for indemnity or for contribution that may or could be made by
Owner, Birchwood Power Partners, L.P., their stockholders, or their respective
successors, assigns, officers, directors, employees, agents or affiliates
pursuant to the provisions of the Operating Agreement or pursuant to law or in
equity.

         13.14 Taxes. Notwithstanding anything to the contrary Contractor shall
pay and Owner shall not be liable or otherwise responsible for the payment of
any taxes or statutory charges levied or assessed against, or collected from,
Contractor including, without limitation, ad valorem, sales, property,
employment, occupation, income and other taxes levied, assessed or collected on
or with respect to Contractor's property or operations; provided, however, that
Contractor shall not be liable for (i) any real estate taxes assessed against
and upon the Facility or the real property upon which the Facility is located;
or (ii) any taxes imposed on the Owner's personal property located at the
Facility; or (iii) any sales taxes arising from the sale of the Current Season's
Crop by Owner (unless Contractor purchases any of the Current Season's Crop) or
(iv) any income taxes of Owner.

         13.15 Transitional Operating Expenses. Owner and Contractor acknowledge
that Contractor has incurred certain expenses prior to the execution of this
Agreement on behalf of Owner in preparation for and in connection with
performing the Services. Owner agrees to promptly reimburse Contractor for such
expenses that Owner determines in its sole discretion were incurred by
Contractor in preparation for or in connection with Contractor's performance of
the Services if Contractor provides Owner with an invoice marked "paid" and
other reasonable documentation as may be requested by Owner for any such
expense. Contractor acknowledges that Owner shall have title to any goods,
materials, equipment or supplies procured by Contractor prior to the execution
of this Agreement in preparation for or in connection with Contractor's
performance of the Services that Owner reimburses Contractor for and, for
avoidance of doubt, Contractor hereby conveys to Owner all rights, title and
interest in and to any such goods, materials, equipment or supplies so procured.

         13.16 Entire Agreement. This Agreement constitutes the Parties' entire
agreement as to the subject matter hereof and supersedes any and all other prior
understandings, correspondence and agreements, oral or written, between them.

                                       18
<PAGE>

         IN WITNESS WHEREOF, the Parties have executed this Agreement as of the
day and year first above written.

 GREENHOST, INC.                      VILLAGE FARMS,  L.P.

By: ___________________________       By: VILLAGE FARMS OF DELAWARE, LLC
                                          its General Partner
Title: __________________________

                                      By: ______________________________

                                      Title: _____________________________

                                       19

<PAGE>

                                    EXHIBIT A
                           DESCRIPTION OF THE FACILITY

The "Facility" consists of the following:

1.       The greenhouse plant (including, without limitation, all fixtures
         thereof), the headhouse building and other buildings used in Owner's
         farming business located on approximately forty-two (42) acres at 2259
         Kings Highway, King George, Virginia 22485; and

2.       The following equipment:

         (i) All existing office equipment, furniture, fixtures and computers
(including, without limitation, radio and phone systems) owned by Owner;

         (ii)     Three (3) Caterpillar GP 18 Forklifts;

         (iii)    Nine (9) electric golf carts;

         (iv)     One (1) EZ Go PC 956 Personnel Carrier;

         (v)      Security system and hardware therefor;

         (vi)     One (1) John Deere 5300 4WD 50HP tractor with blade
attachment;

         (vii)    One (1) mower;

         (viii)   One (1) tiller;

         (ix)     Seven (7) trash dumpsters;

         (x) All existing greenhouse safety equipment, maintenance equipment
(excluding scissor lifts), tools and spare parts;

         (xi)     Two (2) air compressors;

         (xii)    One (1) 1000 kw generator;

         (xiii)   One (1) sweeper; and

         (xiv)    One (1) 12,000 sq. ft. Cooler.

<PAGE>

                                    EXHIBIT B
                    LIST OF CONTRACTOR'S TOOLS AND EQUIPMENT

1.       Mobile Home
2.       Triple K Fence - chain link mesh fence for pool
3.       Kehr Buffalo Wire Frame - Stem supports
4.       Agro Dynamics Battery Charger (14)
5.       AWETA grader machine
6.       Priva Computer - Sensor and Inte gro Extension
7.       (2) Space maker Group Pallet Trucks
8.       Agro Dynamics Hole Cutters (5 - handheld)
9.       Agro Dynamics Fert Plus Irrigation
10.      Agro Dynamics Sprinkler System
11.      Agro Dynamics Irrigation System
12.      Agro Dynamics - HP Cart 1000 liter sprayer
13.      Bouldin & Lawson Needle Seeder
14.      (__) AGRODY aluminum carts
15.      Pulse Fog K3 Bio Insect Control Equipment
16.      Prins maaskijk bailing machine
17.      One (1) Mitsubishi Forklift
18.      ADI - P/R Time Card Upgrade
19.      Chevy Truck
20.      (50) electric work carts
21.      (50) picking carts
22.      Two (2) Sinclair Sticker Applicators
23.      One (1) Box Folding Machine
24.      Four (4) office computers

<PAGE>

                                    EXHIBIT C

                                  KEY EMPLOYEES

         The Key Employees are:

1.       Bob Hoffman - General Manager and Head Grower;

2.       Brett Wiley - National Sales Manager

<PAGE>

                                    EXHIBIT D
                                 LICENSED MARKS

The "Licensed Marks" are:
<TABLE>
<CAPTION>
                           Application               Application
                           Registration              Registration
Trademark                    Number                      Date                   Remarks        Status
---------                  -----------               ------------               ---------      ------
<S>                             <C>                     <C>                         <C>          <C>
BABY BEEFS                (75/528,439)                (7/29/98)                  Pending        (TM)

HOME CHOICE               (75/528,441)                (7/29/98)                  Pending        (TM)

VILLAGE FARMS               1,740,348                 7/28/1992                  Registered      (R)
</TABLE>

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