Document:

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                                                                   EXHIBIT 10.11

                         U.S. BANCORP PIPER JAFFRAY INC.

                              SECOND CENTURY GROWTH

                           DEFERRED COMPENSATION PLAN

             (AS AMENDED AND RESTATED EFFECTIVE SEPTEMBER 30, 1998)

<PAGE>

                         U.S. BANCORP PIPER JAFFRAY INC.
                              SECOND CENTURY GROWTH
                           DEFERRED COMPENSATION PLAN
             (AS AMENDED AND RESTATED EFFECTIVE SEPTEMBER 30, 1998)

                                TABLE OF CONTENTS

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SECTION 1  INTRODUCTION.........................................................      1

   1.1.  ESTABLISHMENT..........................................................      1
   1.2.  PURPOSE................................................................      1
   1.3.  DEFINITIONS............................................................      1
      1.3.1.   Account..........................................................      1
      1.3.2.   Beneficiary......................................................      1
      1.3.3.   Code.............................................................      1
      1.3.4.   Company..........................................................      1
      1.3.5.   Director of Equity Capital Markets...............................      1
      1.3.6.   ECM Investment Committee.........................................      1
      1.3.7.   ECM Operating Committee..........................................      1
      1.3.8.   Employer.........................................................      1
      1.3.9.   ERISA............................................................      2
      1.3.10.  Liquidity Event..................................................      2
      1.3.11.  Management Committee.............................................      2
      1.3.12.  Measuring Investment.............................................      2
      1.3.13.  Old Account......................................................      2
      1.3.14.  Participant......................................................      2
      1.3.15   Plan.............................................................      2
      1.3.16.  Plan Statement...................................................      2
      1.3.17.  Plan Year........................................................      2
   1.4.  RULES OF INTERPRETATION................................................      2

SECTION 2  PARTICIPATION........................................................      3

   2.1.  ELIGIBILITY AND SELECTION..............................................      3
   2.2.  NOTIFICATION...........................................................      3
   2.3.  ENROLLMENT.............................................................      3

SECTION 3  ACCOUNTS.............................................................      3

   3.1.  ACCOUNTS...............................................................      3
   3.2.  CREDITS TO ACCOUNTS....................................................      3
      3.2.1.   Bonus Credit.....................................................      4
      3.2.2.   Interest Credit..................................................      4
      3.2.3.   Investment Credit................................................      4
   3.3.  MEASURING INVESTMENTS..................................................      4
   3.4.  CHARGES TO ACCOUNTS....................................................      4
      3.4.1.   Investment Charge................................................      4
      3.4.2.   Benefit Payment Charge...........................................      4
      3.4.3.   Debt Set-Off Charge..............................................      4

SECTION 4  BENEFITS.............................................................      5

   4.1.  BENEFITS PAYABLE TO A PARTICIPANT......................................      5
   4.2.  THREE-YEAR WAITING PERIOD..............................................      5
   4.3.  FORFEITURE OF BENEFITS UPON COMPETITION................................      5
      4.3.1.  Exception for Old Accounts........................................      6
      4.3.2.  Exception for Certain Terminations................................      6
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      4.3.3.  Exception for Change of Control...................................      6
   4.4.  FORFEITURE OF BENEFITS UPON GROSS MISCONDUCT...........................      8
   4.5.  NO REALLOCATION OF FORFEITED AMOUNTS...................................      8
   4.6.  BENEFITS PAYABLE TO A BENEFICIARY......................................      8
      4.6.1.  Death Before Full Payment.........................................      8
      4.6.2.  Beneficiary Designation...........................................      9
      4.6.3.  Failure of Designation............................................      9
      4.6.4.  Definitions.......................................................      9
      4.6.5.  Special Rules.....................................................      9

SECTION 5  ADMINISTRATION.......................................................     10

   5.1.  ADMINISTRATION.........................................................     10
   5.2.  ECM INVESTMENT COMMITTEE...............................................     10
      5.2.1.  Appointment.......................................................     10
      5.2.2.  Organization......................................................     10
      5.2.3.  Authority.........................................................     10
      5.2.4.  Exercise of Authority.............................................     10
      5.2.5.  Limitation on Individual's Authority..............................     10
   5.3.  ECM OPERATING COMMITTEE................................................     11
      5.3.1.  Appointment.......................................................     11
      5.3.2.  Organization......................................................     11
      5.3.3.  Authority.........................................................     11
      5.3.4.  Exercise of Authority.............................................     11
      5.3.5.  Limitation on Individual's Authority..............................     11
   5.4.  BINDING EFFECT.........................................................     11

SECTION 6  AMENDMENT AND TERMINATION............................................     11

   6.1.  AMENDMENT..............................................................     11
   6.2.  TERMINATION............................................................     11
   6.3.  DELEGATION BY AFFILIATED EMPLOYERS.....................................     12

SECTION 7  GENERAL PROVISIONS...................................................     12

   7.1.  CONTRACTUAL RIGHT TO BENEFITS..........................................     12
   7.2.  BENEFITS NOT TRANSFERABLE..............................................     12
   7.3.  WITHHOLDING TAXES......................................................     12
   7.4.  EFFECT ON EMPLOYMENT RIGHTS AND OTHER BENEFIT PROGRAMS.................     12
   7.5.  BINDING EFFECT OF AGREEMENT............................................     12
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                         U.S. BANCORP PIPER JAFFRAY INC.
                              SECOND CENTURY GROWTH
                           DEFERRED COMPENSATION PLAN
             (AS AMENDED AND RESTATED EFFECTIVE SEPTEMBER 30, 1998)

                                    SECTION 1

                                  INTRODUCTION

1.1. ESTABLISHMENT. The Company originally adopted this Plan on September 26,
1996, and the Employers hereby amend and restate the Plan in this document
effective September 30, 1998.

1.2. PURPOSE. The purpose of the Plan is to help motivate and retain the
employees who are key contributors to the success of the Equity Capital Markets
business of the Employers by providing such employees with deferred bonus
payments measured by the performance of certain investments related to the focus
of that business.

1.3. DEFINITIONS. When the following terms are used herein with initial capital
letters, they shall have the following meanings:

         1.3.1. ACCOUNT -- the separate recordkeeping account (unfunded and
unsecured) maintained for each Participant in connection with his/her
participation in the Plan for a specific Plan Year.

         1.3.2. BENEFICIARY -- a person designated by a Participant (or
automatically by operation of this Plan Statement) to receive a benefit equal to
part or all of the balance of the Participant's Accounts in the event of the
Participant's death prior to full payment thereof.

         1.3.3. CODE -- the Internal Revenue Code of 1986, as the same may be
amended from time to time.

         1.3.4. COMPANY -- U.S. Bancorp Piper Jaffray Inc. (formerly known as
Piper Jaffray Inc.), a Delaware corporation.

         1.3.5. DIRECTOR OF EQUITY CAPITAL MARKETS -- the director of the Equity
Capital Markets business of the Company, as such director may be designated from
time to time.

         1.3.6. ECM INVESTMENT COMMITTEE -- the committee established under
Section 5.2 of the Plan Statement to make various investment decisions under the
Plan, as such committee may be constituted from time to time.

         1.3.7. ECM OPERATING COMMITTEE -- the committee established under
Section 5.3 of the Plan Statement to make various administrative decisions under
the Plan, as such committee may be constituted from time to time.

         1.3.8. EMPLOYER -- the Company or Piper Jaffray Ventures Inc.,
whichever employs the Participant at the end of the Plan Year for which he/she
is granted a deferred bonus award under the rules of Section 2 of the Plan
Statement.

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         1.3.9. ERISA -- the Employee Retirement Income Security Act of 1974, as
the same may be amended from time to time.

         1.3.10. LIQUIDITY EVENT -- any occurrence with respect to a Measuring
Investment that would provide its investors with liquidity, such as a cash
distribution, an initial public offering, a merger or other transaction in which
investors receive cash or securities.

         1.3.11. MANAGEMENT COMMITTEE -- the "Management Committee" of the
Company, as such committee may be constituted from time to time.

         1.3.12. MEASURING INVESTMENT -- an investment related to the focus of
the Equity Capital Markets business of the Employers that is designated by the
ECM Investment Committee as a device for measuring the value of all
Participants' Accounts maintained for a specific Plan Year.

         1.3.13. OLD ACCOUNT -- an Account established under the Plan with
respect to a fiscal year of the Company ending before October 1, 1997.

         1.3.14. PARTICIPANT -- an employee of an Employer who becomes a
Participant in the Plan for a specific Plan Year under the rules of Section 2 of
the Plan Statement.

         1.3.15 PLAN -- the unfunded deferred compensation plan established and
maintained by the Employers for the benefit of the employees who are key
contributors to the success of their Equity Capital Markets business. (As used
herein, "Plan" refers to the legal entity maintained by the Employers and not to
the document pursuant to which the Plan is maintained. That document is referred
to herein as the "Plan Statement.") The name of the Plan is "U.S. Bancorp Piper
Jaffray Inc. Second Century Growth Deferred Compensation Plan."

         1.3.16. PLAN STATEMENT -- this amended and restated document entitled
"U.S. Bancorp Piper Jaffray Inc. Second Century Growth Deferred Compensation
Plan (As Amended and Restated Effective September 30, 1998)," as the same may be
amended from time to time. This Plan Statement is effective September 30, 1998,
for all Accounts maintained under the Plan, including Accounts established
before that date.

         1.3.17. PLAN YEAR -- the calendar year. However, the following special
rules apply:

         (a)      The period that begins October 1, 1997, and ends December 31,
                  1998, shall be a single Plan Year.

         (b)      For all Old Accounts the Plan Year shall be the twelve
                  consecutive month period that begins each October 1 and ends
                  the following September 30.

1.4. RULES OF INTERPRETATION. The Plan is intended to be an unfunded plan
maintained primarily for the purpose of providing deferred compensation for a
select group of management or highly compensated employees, within the meaning
of ERISA section 301(a)(3). The administration of the Plan and the
interpretation of the Plan Statement shall be consistent with that intent.
Whenever appropriate, words used herein in the singular may be read in the
plural, or words used herein in the plural may be read in the singular; the
masculine may include the feminine; and the words "hereof," "herein" or
"hereunder" or other similar compounds of the word "here" shall mean and refer
to the entire Plan Statement and not to any particular paragraph or section of
this Plan Statement unless the context clearly indicates to the

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contrary. The titles given to the various sections of this Plan Statement are
inserted for convenience of reference only and are not part of this Plan
Statement, and they shall not be considered in determining the purpose, meaning
or intent of any provision hereof. Any reference in this Plan Statement to a
statute shall be considered also to mean and refer to the applicable regulations
for that statute; and any reference in this Plan Statement to a statute or
regulation shall be considered also to mean and refer to any subsequent
amendment or replacement of that statute or regulation. This Plan Statement has
been executed and delivered in the State of Minnesota and has been drawn in
conformity to the laws of that State and shall, except to the extent that
federal law is controlling, be construed and enforced in accordance with the
laws of the State of Minnesota (without regard to its conflict of law
principles).

                                    SECTION 2

                                  PARTICIPATION

2.1. ELIGIBILITY AND SELECTION. At the end of each Plan Year, the Participants
for that year shall be selected and their deferred bonus awards shall be
determined as follows:

         (a)      The Director of Equity Capital Markets shall be eligible to
                  participate in the Plan for that year and the President of the
                  Company, in his/her sole discretion, shall determine the
                  deferred bonus award for the Director of Equity Capital
                  Markets.

         (b)      The ECM Operating Committee, in its sole discretion, shall
                  select the Equity Capital Markets employees eligible to
                  participate in the Plan for that year and shall determine the
                  deferred bonus award for each such employee. To be eligible
                  for selection, an Equity Capital Markets employee must be (i)
                  a key contributor to the success of the Equity Capital Markets
                  business of the Employers, (ii) a highly compensated employee
                  within the meaning of Code section 414(q), and (iii) a
                  management or highly compensated employee within the meaning
                  of ERISA section 301(a)(3).

2.2. NOTIFICATION. The Employer shall provide each individual so selected with
(i) written notification of his/her selection and deferred bonus award, (ii) the
required enrollment forms, and (iii) either a copy of the Plan Statement or
written notification that such a copy is available upon request.

2.3. ENROLLMENT. Participation in the Plan is voluntary for each individual so
selected, but the Employer shall not provide a cash bonus or other remuneration
in lieu of such participation. To become a Participant, the individual must
enroll by signing and returning a participation agreement as prescribed by the
Employer.

                                    SECTION 3

                                    ACCOUNTS

3.1. ACCOUNTS. The Employer shall establish and maintain a separate Account for
each of its Participants for each Plan Year that he/she enrolls as a
Participant. The Account shall be for recordkeeping purposes only and shall not
represent a trust fund or other segregation of assets for the benefit of the
Participant.

3.2. CREDITS TO ACCOUNTS. The Account so established and maintained for each
Participant shall be credited from time to time as provided in this Section 3.2.

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         3.2.1. BONUS CREDIT. As of the last day of the Plan Year for which the
Participant enrolls, the Account shall be credited with the amount of his/her
deferred bonus award for that year, as determined under Section 2.1 of the Plan
Statement.

         3.2.2. INTEREST CREDIT. Commencing as of the first day of the Plan Year
immediately following the Plan Year for which the Participant enrolls, any
portion of the Account balance that is not allocated to Measuring Investments
under Section 3.3 below shall be credited with interest at the rate applicable
from time to time to investors in the First American Prime Obligations Fund.

         3.2.3. INVESTMENT CREDIT. Commencing as of the first day of the Plan
Year immediately following the Plan Year for which the Participant enrolls, any
portion of the Account balance that is allocated to Measuring Investments under
Section 3.3 below shall be credited with its share of the income and gains of
such Measuring Investments under such procedures as the ECM Investment
Committee, in its sole discretion, shall determine from time to time.

3.3. MEASURING INVESTMENTS. The ECM Investment Committee, in its sole
discretion, shall designate certain investments related to the focus of the
Equity Capital Markets business of the Employers to be the Measuring Investments
for determining the value of all Participants' Accounts maintained for a
specific Plan Year. For this purpose, it shall be deemed that the Account
balances of all the Participants for that year are combined and that such
portion of the combined amount as the ECM Investment Committee, in its sole
discretion, shall determine is placed in each such designated investment on the
same terms and conditions as would be available to the Employer as an investor.
Each Participant shall be deemed to have a pro rata share (based on the ratio of
his/her Account balance for that year to the Account balances of all
Participants for that year) in each such designated investment. The Measuring
Investments are solely a device for computing the amount of benefits to be paid
to Participants under the Plan, and Participants have no claim or right to any
actual investments.

3.4. CHARGES TO ACCOUNTS. The Account so established and maintained for each
Participant shall be charged from time to time as provided in this Section 3.4.

         3.4.1. INVESTMENT CHARGE. Commencing as of the first day of the Plan
Year immediately following the Plan Year for which the Participant enrolls, any
portion of the Account balance that is allocated to Measuring Investments under
Section 3.3 above shall be charged with its share of the losses and expenses of
such Measuring Investments under such procedures as the ECM Investment
Committee, in its sole discretion, shall determine from time to time.

         3.4.2. BENEFIT PAYMENT CHARGE. As of the date any benefit payment is
made to the Participant or to his/her Beneficiary under the Plan, the Account
shall be charged with the amount of such benefit payment.

         3.4.3. DEBT SET-OFF CHARGE. As of the date any debt is set-off against
the Account under Section 7.2 of the Plan Statement, the Account shall be
charged with the amount of such debt.

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                                    SECTION 4

                                    BENEFITS

4.1. BENEFITS PAYABLE TO A PARTICIPANT. As soon as administratively feasible
after a Liquidity Event for a particular Measuring Investment, the Employer
shall pay each Participant whose Account is deemed to be invested in that
Measuring Investment a benefit equal to the portion of his/her Account that is
deemed liquid as a result of such Liquidity Event, as the ECM Operating
Committee, in its sole discretion, shall determine. The benefit payment shall be
made in the form of cash or securities of the type received by investors in the
Measuring Investment or in a combination of cash and such securities, as the ECM
Operating Committee, in its sole discretion, shall determine.

4.2. THREE-YEAR WAITING PERIOD. Notwithstanding any other provision of this Plan
Statement, no benefit payment shall be made to any Participant until the end of
the third (3rd) Plan Year following the Plan Year for which his/her Account is
established. If a Liquidity Event occurs during this three-year period, the ECM
Investment Committee, in its sole discretion, shall direct that the liquid
proceeds from such Measuring Investment be treated in any one or a combination
of the following ways for purposes of Section 3 of the Plan Statement:

         (a)      Credited with interest pursuant to Section 3.2.2 for payment
                  at the end of the three-year period;

         (b)      Reinvested in another Measuring Investment pursuant to Section
                  3.3 for payment upon a subsequent Liquidity Event for that
                  other investment; or

         (c)      Held in the form of securities of the type received by
                  investors in the Measuring Investment for payment at the end
                  of the three-year period, with any cash dividend or other cash
                  distributions with respect to such securities being credited
                  with interest pursuant to Section 3.2.2 for payment at the end
                  of the three-year period.

4.3. FORFEITURE OF BENEFITS UPON COMPETITION. If a Participant's employment with
the Employers shall be terminated (whether voluntarily or involuntarily), and at
any time thereafter such Participant shall become Involved (as defined below)
with a Competitor (as defined below), then such Participant shall immediately
forfeit forever all rights to benefits with respect to all Accounts (other than
Old Accounts) then maintained for such Participant. For purposes of this Section
4.3:

         (a)      The term "Involved" shall mean any participation with or
                  involvement in as an employee, partner, shareholder (except as
                  a 5% or less shareholder of a public corporation), creditor,
                  director, officer, principal, agent, consultant, or in any
                  other relationship or capacity; and

         (b)      The term "Competitor" shall mean any person, partnership,
                  corporation or other entity engaged in any business which
                  competes with the Equity Capital Markets business of the
                  Employers in sales, trading, corporate finance or research;

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in each case as determined by the ECM Operating Committee, in its sole
discretion.

         4.3.1. EXCEPTION FOR OLD ACCOUNTS. Old Accounts are not subject to
forfeiture under Section 4.3.

         4.3.2. EXCEPTION FOR CERTAIN TERMINATIONS. Notwithstanding the
foregoing, however, the Participant shall not forfeit any benefits if the ECM
Operating Committee, in its sole discretion, determines that his/her employment
was terminated by the Employers due to a business decision to discontinue
operations in a particular geographic location or in a particular market niche.

         4.3.3. EXCEPTION FOR CHANGE OF CONTROL. Notwithstanding the foregoing,
however, the Participant shall not forfeit any benefits if his/her employment
terminates (whether voluntarily or involuntarily) at any time after an Employer
Change of Control Event (as defined below) or a Parent Change of Control Event
(as defined below). For purposes of this Section 4.3.2:

         (a)      The term "Employer Change of Control Event" shall mean any of
                  the following events:

                  (i)      U.S. Bancorp or one or more of its subsidiaries
                           shall, at any time, beneficially own (as defined in
                           Rule 13d-3 under the Securities Exchange Act of 1934,
                           as amended (the "Exchange Act")) less than 51% of the
                           outstanding voting stock of the Employer;

                  (ii)     The shareholders of the Employer approve a definitive
                           agreement or plan to sell or otherwise dispose of all
                           or substantially all of the assets of the Employer
                           (in one transaction or a series of transactions)
                           (other than a sale or other disposition to U.S.
                           Bancorp or one or more of its subsidiaries); or

                  (iii)    U.S. Bancorp or one or more of its subsidiaries or
                           the Employer enters into an agreement in principle or
                           a definitive agreement relating to an Employer Change
                           of Control Event described in (a)(i) or (a)(ii)
                           above, which ultimately results in such an Employer
                           Change of Control Event.

         (b)      The term "Parent Change of Control Event" shall mean any of
                  the following events:

                  (i)      20% or more of either (x) the then outstanding shares
                           of common stock of U.S. Bancorp (the "Outstanding USB
                           Common Stock") or (y) the combined voting power of
                           the then outstanding voting securities of U.S.
                           Bancorp entitled to vote generally in the election of
                           its board of directors (the "Outstanding USB Voting
                           Securities"), is acquired or beneficially owned (as
                           defined in Rule 13d-3 under the Exchange Act) by any
                           individual, entity or group (within the meaning of
                           section 13(d)(3) or 14(d)(2) of the Exchange Act);
                           provided, however, that the following acquisitions
                           shall not constitute Parent Change of Control Events:

                           (A)      Any acquisition directly from U.S. Bancorp,

                           (B)      Any acquisition by U.S. Bancorp or any one
                                    or more of its subsidiaries,

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                           (C)      Any acquisition by any employee benefit plan
                                    (or related trust) sponsored or maintained
                                    by U.S. Bancorp or one or more of its
                                    subsidiaries, or

                           (D)      Any acquisition by any corporation with
                                    respect to which, immediately following such
                                    acquisition, more than 60% of, respectively,
                                    the then outstanding shares of common stock
                                    of such corporation and the combined voting
                                    power of the then outstanding voting
                                    securities of such corporation entitled to
                                    vote generally in the election of directors
                                    is then beneficially owned, directly or
                                    indirectly, by all or substantially all of
                                    the individuals and entities who were the
                                    beneficial owners, respectively, of the
                                    Outstanding USB Common Stock and Outstanding
                                    USB Voting Securities immediately prior to
                                    such acquisition in substantially the same
                                    proportions as was their ownership,
                                    immediately prior to such acquisition, of
                                    the Outstanding USB Common Stock and
                                    Outstanding USB Voting Securities, as the
                                    case may be;

                  (ii)     Individuals who, as of September 30, 1998, constitute
                           the board of directors of U.S. Bancorp (the
                           "Incumbent USB Board") cease for any reason to
                           constitute at least a majority of the board of
                           directors of U.S. Bancorp (the "USB Board");
                           provided, however, that any individual becoming a
                           member of the USB Board subsequent to that date whose
                           election, or nomination for election by the
                           stockholders of U.S. Bancorp, was approved by a vote
                           of at least a majority of the directors then
                           comprising the Incumbent USB Board shall be
                           considered a member of the Incumbent USB Board, but
                           excluding, for this purpose, any such individual
                           whose initial assumption of office occurs as a result
                           of an actual or threatened election contest which was
                           (or, if threatened, would have been) subject to
                           Exchange Act Rule 14a-11;

                  (iii)    Approval by the stockholders of U.S. Bancorp of a
                           reorganization, merger, consolidation or statutory
                           exchange of Outstanding USB Voting Securities, unless
                           immediately following such reorganization, merger,
                           consolidation or exchange, all or substantially all
                           of the individuals and entities who were the
                           beneficial owners, respectively, of the Outstanding
                           USB Common Stock and Outstanding USB Voting
                           Securities immediately prior to such reorganization,
                           merger, consolidation or exchange beneficially own,
                           directly or indirectly, more than 60% of,
                           respectively, the then outstanding shares of common
                           stock and the combined voting power of the then
                           outstanding voting securities entitled to vote
                           generally in the election of directors, as the case
                           may be, of the corporation resulting from such
                           reorganization, merger, consolidation or exchange in
                           substantially the same proportions as was their
                           ownership, immediately prior to such reorganization,
                           merger, consolidation or exchange, of the Outstanding
                           USB Common Stock and Outstanding USB Voting
                           Securities, as the case may be;

                  (iv)     Approval by the stockholders of U.S. Bancorp of (x) a
                           complete liquidation or dissolution of U.S. Bancorp
                           or (y) the sale or other disposition of all or
                           substantially all of the assets of U.S. Bancorp,
                           other than to a corporation with respect to which,
                           immediately following such sale or other disposition,
                           more than 60% of, respectively, the then outstanding
                           shares of common stock of such corporation and the
                           combined voting power of the then outstanding voting

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                           securities of such corporation entitled to vote
                           generally in the election of directors is then
                           beneficially owned, directly or indirectly, by all or
                           substantially all of the individuals and entities who
                           were the beneficial owners, respectively, of the
                           Outstanding USB Common Stock and Outstanding USB
                           Voting Securities immediately prior to such sale or
                           other disposition in substantially the same
                           proportions as was their ownership, immediately prior
                           to such sale or other disposition, of the Outstanding
                           USB Common Stock and Outstanding USB Voting
                           Securities, as the case may be; or

                  (v)      U.S. Bancorp enters into an agreement in principle or
                           a definitive agreement relating to a Parent Change of
                           Control Event described in (b)(i), (b)(ii), (b)(iii)
                           or (b)(iv) above that ultimately results in such a
                           Parent Change of Control Event or a tender or
                           exchange offer or proxy contest is commenced which
                           ultimately results in a Parent Change of Control
                           Event described in (b)(i) or (b)(ii) above.

Notwithstanding the above, a Parent Change of Control Event shall not be deemed
to occur with respect to a Participant if (x) the acquisition of the 20% or
greater interest referred to in (b)(i) above is by that Participant or by a
group, acting in concert, that includes that Participant or (y) if at least 40%
of the then outstanding common stock or combined voting power of the then
outstanding voting securities (or voting equity interests) of the surviving
corporation or of any corporation (or other entity) acquiring all or
substantially all of the assets of U.S. Bancorp shall, immediately after a
reorganization, merger, consolidation, statutory share exchange or disposition
of assets referred to in (b)(iii) or (b)(iv) above, be beneficially owned,
directly or indirectly, by that Participant or by a group, acting in concert,
that includes that Participant.

4.4. FORFEITURE OF BENEFITS UPON GROSS MISCONDUCT. If a Participant commits any
act of Gross Misconduct (as defined below) then such Participant shall
immediately forfeit forever all rights to benefits with respect to all Accounts
then maintained for such Participant. During the resolution of a charge of Gross
Misconduct, the Accounts shall be maintained for such Participant, but no
benefit payments shall be made with respect to such Accounts.

For purposes of this Section 4.4, the term "Gross Misconduct" shall mean any one
or more of the following:

         (a)      Impropriety or misbehavior of a type resulting in termination
                  of employment under the policies and practices of the
                  Employer; or

         (b)      Conviction of or pleading guilty or nolo contendere to any
                  felony;

in each case as determined by the ECM Operating Committee, in its sole
discretion.

4.5. NO REALLOCATION OF FORFEITED AMOUNTS. Any Account balance forfeited under
Sections 4.3 and 4.4 above shall revert to the Employer and shall not be
reallocated among the remaining Participants.

4.6. BENEFITS PAYABLE TO A BENEFICIARY.

         4.6.1. DEATH BEFORE FULL PAYMENT. If the Participant has an unpaid
balance in any one or more Accounts at his/her death, the Employer shall pay the
Beneficiary of the deceased Participant a benefit

                                      -8-
<PAGE>

equal to the remaining value of those Accounts at the same time and in the same
amount and form as payment would otherwise have been made to the Participant if
he/she were living.

         4.6.2. BENEFICIARY DESIGNATION. Each Participant may designate, upon
forms to be furnished by and filed with the Company, one or more primary
Beneficiaries or contingent Beneficiaries to receive all or a specified part of
his/her unpaid Account balances in the event of his/her death. The Participant
may change or revoke any such designation from time to time without notice to or
consent from any Beneficiary or spouse. No such designation, change or
revocation shall be effective unless executed by the Participant and received by
the Company during the Participant's lifetime. Each such designation, change or
revocation shall apply to all the Accounts maintained for the Participant under
the Plan.

         4.6.3.   FAILURE OF DESIGNATION. If a Participant:

         (a)      Fails to designate a Beneficiary,

         (b)      Designates a Beneficiary and thereafter such designation is
                  revoked without another Beneficiary being named, or

         (c)      Designates one or more Beneficiaries and all such
                  Beneficiaries so designated fail to survive the Participant,

such Participant's unpaid Account balances, or the part thereof as to which such
Participant's designation fails, as the case may be, shall be payable to the
representative of the Participant's estate.

         4.6.4. DEFINITIONS. When used herein and, unless the Participant has
otherwise specified in his/her Beneficiary designation, when used in a
Beneficiary designation, "issue" means all persons who are lineal descendants of
the person whose issue are referred to, including adopted descendants and their
descendants but not including illegitimate descendants and their descendants;
"child" means an issue of the first generation; "per stirpes" means in equal
shares among living children of the person whose issue are referred to and the
issue (taken collectively) of each deceased child of such person, with such
issue taking by right of representation of such deceased child; and "survive"
and "surviving" mean living after the death of the Participant.

         4.6.5. SPECIAL RULES. Unless the Participant has otherwise specified in
his/her Beneficiary designation, the following rules shall apply:

         (a)      If there is not sufficient evidence that a Beneficiary was
                  living at the time of the death of the Participant, it shall
                  be deemed that the Beneficiary was not living at the time of
                  the death of the Participant.

         (b)      The Beneficiaries designated by the Participant shall become
                  fixed at the time of the Participant's death so that, if a
                  Beneficiary survives the Participant but dies before the
                  receipt of all payments due such Beneficiary hereunder, such
                  remaining payments shall be payable to the representative of
                  such Beneficiary's estate.

         (c)      If the Participant designates as a Beneficiary the person who
                  is the Participant's spouse on the date of the designation,
                  either by name or by relationship, or both, the dissolution,
                  annulment or other legal termination of the marriage between
                  the Participant and such person shall automatically revoke
                  such designation. (The foregoing shall not prevent the

                                      -9-
<PAGE>

                  Participant from designating a former spouse as a Beneficiary
                  on a form executed by the Participant and received by the
                  Company after the date of the legal termination of the
                  marriage between the Participant and such former spouse, and
                  during the Participant's lifetime.)

         (d)      Any designation of a nonspouse Beneficiary by name that is
                  accompanied by a description of relationship to the
                  Participant shall be given effect without regard to whether
                  the relationship to the Participant exists then or at the
                  Participant's death.

         (e)      Any designation of a Beneficiary only by statement of
                  relationship to the Participant shall be effective only to
                  designate the person or persons standing in such relationship
                  to the Participant at the Participant's death.

The ECM Operating Committee shall be the sole judge of the content,
interpretation and validity of a purported Beneficiary designation.

                                    SECTION 5

                                 ADMINISTRATION

5.1. ADMINISTRATION. Except for the matters specifically assigned to the Board
of Directors, the Management Committee, the President or the Director of Equity
Capital Markets of the Company by this Plan Statement, the Plan shall be
administered by the Employers in accordance with the determinations of the ECM
Investment Committee and the ECM Operating Committee.

5.2.  ECM INVESTMENT COMMITTEE.

         5.2.1. APPOINTMENT. The Director of Equity Capital Markets shall
determine the size of the ECM Investment Committee from time to time and shall
appoint the members. Each member of the ECM Investment Committee shall hold
office at the pleasure of the Director of Equity Capital Markets and any
vacancies in its membership shall be filled from time to time, as they occur, by
appointment by the Director of Equity Capital Markets.

         5.2.2. ORGANIZATION. The ECM Investment Committee shall hold meetings
upon such notice, at such times and at such places as it may determine, and may
consult and transact business by telephone or by written action in lieu of a
formal meeting. Any action taken or approval given by a majority of the members
of the ECM Investment Committee shall be considered the action or approval of
the ECM Investment Committee.

         5.2.3. AUTHORITY. The ECM Investment Committee shall have the authority
to make such uniform rules as may be necessary to carry out the investment
responsibilities assigned to it under the Plan Statement. The ECM Investment
Committee shall determine any questions arising in the interpretation and
application of the Plan that are related to its investment responsibilities.

         5.2.4. EXERCISE OF AUTHORITY. The ECM Investment Committee may exercise
its authority in its full discretion, subject only to the limits expressly
imposed on it under the Plan Statement.

         5.2.5. LIMITATION ON INDIVIDUAL'S AUTHORITY. If any member of the ECM
Investment Committee is also an employee of an Employer or a Participant, he/she
shall have no authority as such

                                      -10-
<PAGE>

member with respect to any matter specially affecting his/her individual
interest hereunder (as distinguished from the interests of all Participants and
Beneficiaries or a broad class of Participants and Beneficiaries), all such
authority being reserved exclusively to the other members of the ECM Investment
Committee to the exclusion of such Participant or Beneficiary, and such
Participant or Beneficiary shall act only in his/her individual capacity in
connection with any such matter.

5.3. ECM OPERATING COMMITTEE.

         5.3.1. APPOINTMENT. The Director of Equity Capital Markets shall
determine the size of the ECM Operating Committee from time to time and shall
appoint the members. Each member of the ECM Operating Committee shall hold
office at the pleasure of the Director of Equity Capital Markets and any
vacancies in its membership shall be filled from time to time, as they occur, by
appointment by the Director of Equity Capital Markets.

         5.3.2. ORGANIZATION. The ECM Operating Committee shall hold meetings
upon such notice, at such times and at such places as it may determine, and may
consult and transact business by telephone or by written action in lieu of a
formal meeting. Any action taken or approval given by a majority of the members
of the ECM Operating Committee shall be considered the action or approval of the
ECM Operating Committee.

         5.3.3. AUTHORITY. The ECM Operating Committee shall have the authority
to make such uniform rules as may be necessary to carry out its administrative
responsibilities under the Plan Statement. The ECM Operating Committee shall
determine any questions arising in the administration, interpretation, and
application of the Plan, subject to the investment authority of the ECM
Investment Committee.

         5.3.4. EXERCISE OF AUTHORITY. The ECM Operating Committee may exercise
its authority in its full discretion, subject only to the limits expressly
imposed on it under the Plan Statement.

         5.3.5. LIMITATION ON INDIVIDUAL'S AUTHORITY. If any member of the ECM
Operating Committee is also an employee of an Employer or a Participant, he/she
shall have no authority as such member with respect to any matter specially
affecting his/her individual interest hereunder (as distinguished from the
interests of all Participants and Beneficiaries or a broad class of Participants
and Beneficiaries), all such authority being reserved exclusively to the other
members of the ECM Operating Committee to the exclusion of such Participant or
Beneficiary, and such Participant or Beneficiary shall act only in his/her
individual capacity in connection with any such matter.

5.4. Binding Effect. The determinations of the ECM Operating Committee and the
ECM Investment Committee in any matter within their authority shall be binding
and conclusive upon the Employers and all persons having any right or benefit
under the Plan.

                                    SECTION 6

                            AMENDMENT AND TERMINATION

6.1. AMENDMENT. The Company reserves the power to amend this Plan Statement
either prospectively or retroactively or both in any respect, by action of its
Board of Directors or its Management Committee, provided that, no amendment
shall be effective to reduce or divest benefits payable with respect to any
Account of any Participant without his/her consent.

                                      -11-
<PAGE>

6.2. TERMINATION. The Company reserves the right to terminate the Plan at any
time by action of its Board of Directors or its Management Committee; provided
that, the termination of the Plan shall not reduce or divest benefits payable
with respect to any Account of any Participant or negate the Participant's or
Beneficiary's rights with respect to such benefits.

6.3. DELEGATION BY AFFILIATED EMPLOYERS. Each Employer that adopts the Plan, as
a condition of its continued participation in the Plan, delegates to the Company
the sole power and authority over all Plan matters, except that the Board of
Directors of each adopting Employer shall have the power to amend this Plan
Statement as applied to it by establishing a successor plan and to terminate the
Plan as applied to it.

                                    SECTION 7

                               GENERAL PROVISIONS

7.1. CONTRACTUAL RIGHT TO BENEFITS. The Plan creates in each Participant a
contractual right to the benefits to which he/she becomes entitled. This
contractual right is unsecured, and the Participant and his/her Beneficiaries
are general, unsecured creditors and may look only to the general assets of
his/her Employer to satisfy this contractual right.

7.2. BENEFITS NOT TRANSFERABLE. Neither a Participant nor any Beneficiary shall
have any transmissible interest in the payments due hereunder or any right to
anticipate, alienate, dispose of, pledge or encumber the same prior to their
actual receipt, nor shall any Account or any benefit payment be subject to
attachment, garnishment, execution following judgment or other legal process
instituted by creditors of the Participant or Beneficiary; provided that, the
balance of each Account and all benefit payments hereunder shall at all times be
subject to set-off, as directed by the ECM Operating Committee, for debts owed
by the Participant or Beneficiary to the Employer and/or any other entity
controlling, controlled by, or under common control with the Employer.

7.3. WITHHOLDING TAXES. The Employer may withhold from any benefit payment made
under the Plan (and transmit to the proper taxing authority) such amount as it
may be required to withhold under any federal, state or other law.

7.4. EFFECT ON EMPLOYMENT RIGHTS AND OTHER BENEFIT PROGRAMS. The Plan shall not
give any Participant any right to be retained in the employment of the Employer.
The Plan shall not replace any contract of employment, whether oral or written,
between the Employer and the Participant. The Plan is in addition to, and not in
lieu of, any other employee benefit plan or program in which the Participant may
be or become eligible to participate by reason of employment with the Employer.
No payments made under this Plan shall have any effect on payments to be made
under any other employee benefit plan or program maintained by the Employer,
except as provided in the provisions of such plan or program.

7.5. BINDING EFFECT OF AGREEMENT. The Plan shall be binding upon and inure to
the benefit of the successors and assigns of the Employer, and the
Beneficiaries, personal representatives and heirs of the Participant.

                                      -12-
<PAGE>

         IN WITNESS WHEREOF, the Employers have caused this Plan Statement to be
executed by their duly authorized officers as of the 30th day of December, 1998.

                               U.S. BANCORP PIPER JAFFRAY INC.

                               By /s/ Addison L. Piper
                                  ---------------------------------------------
                                    Its Chairman
                                        ---------------------------------------

                               And  /s/ Andrew S. Duff
                                    -------------------------------------------
                                    Its Chief Executive Officer
                                        ---------------------------------------

                               PIPER JAFFRAY VENTURES INC.

                               By /s/ Addison L. Piper
                                  ---------------------------------------------
                                    Its
                                         --------------------------------------

                               And /s/ Paul Karos
                                   --------------------------------------------
                                    Its
                                         --------------------------------------

                                      -13-<PAGE>

                                                                      EXHIBIT 67

                          LEASE AND SERVICES AGREEMENT

                                   PARTICULARS

--------------------------------------------------------------------------------
1   DATE

--------------------------------------------------------------------------------
2   CUSTOMER                         Name: NaviSite Europe Limited

                                     Company Number: 02329182

                                     Registered Office: The Old Coroners Court,
                                     1 London Street, Reading, Berkshire RG1 4QW

--------------------------------------------------------------------------------
3   GUARANTOR                        Name: NaviSite Inc

                                     Federal ID Number: 52-213-7343

                                     Registered Office: Minuteman Road, Andover,
                                     MA, 01810, USA

--------------------------------------------------------------------------------
4   TERM                             7 years from (and including) the
                                     Commencement Date

--------------------------------------------------------------------------------
5   COMMENCEMENT DATE                1 April 2003

--------------------------------------------------------------------------------
6   AREA COMPRISED IN THE LOCATION   4,022 square feet

--------------------------------------------------------------------------------
7   RENT                             TWO HUNDRED AND EIGHTY ONE
                                     THOUSAND AND FIVE POUNDS AND FORTY FOUR
                                     PENCE ((pound)281,005.44) per annum
                                     subject to increase in accordance with
                                     Clause 5.2

--------------------------------------------------------------------------------
8   NUMBER OF CAR PARKING SPACES     5

--------------------------------------------------------------------------------
9   MAXIMUM LOAD                     450 watts per square metre of the Location

--------------------------------------------------------------------------------
10  ELECTRICITY FEE PAYABLE          Yes in accordance with clause 6.13

--------------------------------------------------------------------------------
11  RATES PAYABLE                    Yes in accordance with clause 6.14

--------------------------------------------------------------------------------
12  UPS COSTS PAYABLE                Yes in accordance with clause 6.15

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

                                       1
<PAGE>

EXECUTED as a DEED by
Global Switch
acting by:

Director

Director/Secretary

EXECUTED as a DEED by
the Tenant
acting by:

/s/ [ILLEGIBLE]

Director

/s/ [ILLEGIBLE]

Director/Secretary

EXECUTED as a DEED by
the Guarantor
acting by:

/s/ GABRIEL RUHAN

Director

/s/ ARTHUR BECKER

Director/Secretary

                                       2
<PAGE>

THESE TERMS AND CONDITIONS are agreed on the date stated in the Particulars
between:

GLOBAL SWITCH (LONDON) LIMITED (Company Number 03698210) whose registered office
is at 185 Park Street, London SE1 9DY ("GLOBAL SWITCH");

TENANT whose details are set out in the Particulars; and

GUARANTOR whose details are set out in the Particulars

1        DEFINITIONS AND INTERPRETATION

1.1      In this Agreement:

         "ADMINISTRATION FEE" has the meaning given to that expression in Clause
         6.13;

         "BUILDING INDEX" means the Building Cost Information Services Limited
         All-in Tender Price Index or where such index ceases to exist such
         other index as may be agreed or determined most accurately to reflect
         any variation in the value of the building costs for the area in which
         the Building is situated;

         "CABLE MANAGEMENT GUIDE" means the Cable Management and Compliance
         Guide attached to this Agreement and as it is amended from time to time
         by Global Switch (acting reasonably) and such amendments are notified
         in writing to the Tenant;

         "COOLING OUTAGE" means the average temperature (measured from the
         re-circulation air conditioning units in the Location) of the room
         temperature sensors in the Location either:

         (a)      exceeds 28 degrees Celsius for more than 60 consecutive
                  minutes; or

         (b)      falls below 16 degrees Celsius for more than 60 consecutive
                  minutes;

         provided the average heat output caused by the Equipment is less than
         or equal to the Maximum Load;

         "COMMENCEMENT DATE" means the date set out in the Particulars from
         which date Global Switch will commence the provision of the Services;

         "COMMON AREAS" means all parts of the Facility from time to time
         provided for the common use of more than one of the occupiers of the
         Facility and their visitors including (without limitation) vehicular
         and pedestrian accesses passages corridors stairways circulation areas
         lifts escalators loading bays fire escapes toilet facilities meeting
         rooms canteens kitchen areas reception areas lobby areas storage areas
         refuse collection and disposal areas and parking areas;

         "EQUIPMENT" means the telecommunications and other equipment and
         apparatus from time to time installed in the Location by the Tenant;

         "FACILITY" means East India Dock House, 240 East India Dock Road,
         London E14 9YY;

         "FACILITY MANAGER" has the meaning ascribed to it in paragraph 18 of
         the Schedule;

                                       3
<PAGE>

         "FORCE MAJEURE" means any event outside the reasonable control of a
         party affecting its ability to perform any of its obligations (other
         than payment) under this Agreement;

         "GROUP COMPANY" means any company which is for the time being a
         subsidiary or holding company or subsidiary of the holding company of
         the Tenant within the meaning of Section 736 of the Companies Act 1985
         as amended by the Companies Act 1989;

         "HUMIDITY OUTAGE" means the average humidity (measured from the
         re-circulation air conditioning units in the Location) of the room
         humidity sensors in the Location is either:

         (a)      higher than a value corresponding with a relative humidity of
                  70% for more than 60 consecutive minutes; or

         (b)      lower than a value corresponding with a relative humidity of
                  30% for more than 60 consecutive minutes;

         "INSURED RISKS" means (to the extent that insurance against such risks
         may ordinarily be arranged with an insurer of good repute) such risks
         or insurance as may from time to time be reasonably required by Global
         Switch;

         "LOCATION" means such part of the Facility comprising the area set out
         in the Particulars and shown for the purposes of identification only
         edged blue on the plan attached to this Agreement including (for the
         avoidance of doubt):

         (a)      all Service Media exclusively serving the Location up to the
                  point of connection with the common or public system;

         (b)      all Global Switch's fixtures and fittings from time to time in
                  the Location;

         (c)      all improvements alterations and additions;

         (d)      the floors (but not the floor slabs) screed plaster and other
                  finishes coverings and carpets on the floors;

         (e)      the interior finishes (including the plaster paint paper or
                  any other coverings) from the upper side of the floor slab
                  immediately below the Location to the underside of the floor
                  or roof slab immediately above the Location (but including any
                  voids between the false ceilings and the ceiling slab above
                  the Location and any voids between any suspended floor and the
                  floor slab below the Location;

         (f)      all non load bearing walls and columns wholly within the
                  Location and the interior one half (including the finishes
                  thereon) of the thickness of such walls dividing the Location
                  from any other parts of the Facility;

         (g)      all internal doors and windows and their frames glass and
                  fitments;

         but excluding:

         (h)      the main structure of the Facility;

         (i)      all Service Media within the Location serving any other part
                  of the Facility;

                                       4
<PAGE>

         (j)      all tenant's and trade fixtures and fittings; and

         (k)      all external doors and windows and their frames glass and
                  fitments

         or such other part or parts of the Facility as Global Switch shall from
         time to time designate pursuant to Clause 3.1;

         "MAXIMUM LOAD" means the maximum heat output of the Equipment stated as
         such in the Particulars;

         "MEET-ME ROOM[s]" means those parts of the Facility which are shown
         edged [blue] on the plan[s] attached to this Agreement or such other
         part or parts of the Facility as Global Switch shall designate as such
         and notify in writing to the Tenant;

         "PARTICULARS" means the Lease and Services Agreement Particulars
         forming part of this Agreement;

         "PAYMENT DATES" means 1 January, 1 April, 1 July and 1 October in each
         year of the Term;

         "POWER OUTAGE" means the voltage level of all of the outgoing circuit
         terminals, between each phase and the neutral conductor of a power
         distribution unit providing electrical power supply to the Equipment in
         the Location is nil;

         "QUALIFYING OUTAGE" means the occurrence of a Cooling Outage or a
         Humidity Outage or a Power Outage;

         "RENT" means the annual fee stated in the Particulars payable in
         respect of the lease by the Tenant of the Location and its use of car
         parking spaces pursuant to Clause 2.1 and the provision of the
         Services;

         "SERVICES" means the services to be provided by Global Switch pursuant
         to this Agreement as described in the Schedule together with any
         additional services which Global Switch agrees to provide for the
         Tenant pursuant to clause 7.1

         "SERVICE INTERRUPTION" means the unavailability of a Service with the
         consequence that the Tenant's business at the Location is or may be
         materially prejudiced or damaged;

         "SERVICE MEDIA" means sewers drains pipes wires cables conduits fibre
         optical fibre cable and other conducting media;

         "SPECIFICATION" means the specification attached to this Agreement;

         "TERM" means the term of this Agreement set out in the Particulars;

         "WORKING DAY" means any day from Monday to Friday (inclusive) which is
         not Christmas Day, Good Friday or a statutory bank holiday

1.2      The Particulars form part of this Agreement but the headings to clauses
         are inserted for convenience only and shall not affect the
         interpretation or construction of this Agreement.

1.3      Words importing the singular shall include the plural and vice versa.
         Words importing a gender include every gender and references to persons
         include an individual,

                                       5
<PAGE>

         company, corporation, firm or partnership.

1.4      All sums payable hereunder are exclusive of VAT or any other applicable
         tax or duty payable upon such sums that shall be added if appropriate
         at the rate prevailing at the relevant tax point.

1.5      The words and phrases "other", "including" and "in particular" shall
         not limit the generality of any preceding words or be construed as
         being limited to the same class as any preceding words where a wider
         construction is possible.

1.6      Any obligation to do or not to do something shall include an obligation
         to procure that it be done or not done.

2        OCCUPATION

2.1      Global Switch hereby demises the Location to the Tenant at the Rent
         with effect from the Commencement Date for the duration of the Term
         together with the right:

         (a)      (subject to Clause 3) to install and retain the Equipment in
                  the Location;

         (b)      to use the number of car parking spaces set out in the
                  Particulars in such place or places as Global Switch shall
                  from time to time designate and notify to the Tenant on not
                  less than 10 Working Days' prior written notice; and

         (c)      to connect into the Service Media which are now or at any time
                  during the Term in the Facility and which serve the Location
                  and then to the free passage and running of services or
                  supplies to and from the Location through those Service Media;

         (d)      (subject to Global Switch's prior approval) to install fibre
                  optical fibre cable in the ducts and chambers in such of the
                  Common Areas as Global Switch shall specify and along routes
                  which Global Switch shall approve provided always that the
                  Tenant complies with the Cable Management Guide;

         (e)      to pass and repass at all times over the Common Areas;

         (f)      (to the extent that Global Switch is entitled to grant such
                  right) to pass and repass at all times over the roads and
                  footpaths of the estate in which the Facility is situated to
                  gain access to and egress from the Facility to and from the
                  public highway; and

         (g)      of escape in emergency over the dedicated fire escapes within
                  the Common Areas

         but excepting and reserving to Global Switch the right on not less than
         10 Working Days' advance notice in writing to the Tenant to enter the
         Location at all times for the purpose of laying and thereafter
         maintaining the Service Media situated in the voids within the Location
         but only where is would otherwise be impracticable to lay and maintain
         them without such entry, Global Switch causing no damage or destruction
         to the Location and no interruption to the Tenant's business carried on
         at the Location, together with the right to free passage and running of
         services or supplies to and from the remainder of the Facility through
         such Service Media, and a right of emergency escape through the
         Location;

                                       6
<PAGE>

2.2      Global Switch reserves the right to refuse to access to the Facility or
         remove from the Facility any employees and sub-contractors of the
         Tenant whose admission or presence is or would be in the reasonable
         opinion of Global Switch detrimental to the security of the Facility or
         in respect of whom the Tenant has failed to request a right of access
         from Global Switch and Global Switch will not be responsible for the
         consequences of any such refusal or failure or delay by the Tenant in
         notifying it of its access requirements;

2.3      The Tenant accepts that Global Switch shall be entitled to disconnect
         or physically terminate or detach or remove cables or other Service
         Media laid by the Tenant in breach of this Agreement and in particular
         in breach of Clause 2.1(d).

3        RELOCATION OF THE EQUIPMENT

3.1      Subject to Clause 3.3, Global Switch shall have the right exercisable
         on not less than six month's written notice to the Tenant during the
         Term to require the Equipment to be moved from the Location or any
         other part or parts of the Facility where the Equipment is then located
         and to be installed in some other part of the Facility (the "NEW
         LOCATION"). All costs and expenses incurred in connection with such
         relocation of the Equipment shall be borne by Global Switch.

3.2      Upon expiry of a notice served under Clause 3.1, this Agreement shall
         determine (but without prejudice to the rights of either party in
         respect of any antecedent breach of this Agreement by the other) and
         the Tenant shall:

         (a)      hand back the Location to Global Switch in accordance with the
                  provisions of this Agreement; and

         (b)      deliver to Global Switch the original part of this Agreement;
                  and

         (c)      enter into a new agreement on the terms of this Agreement
                  (mutatis mutandis) in respect of the New Location for a term
                  expiring on the contractual expiry date of this Agreement.

3.3      Without prejudice to the rights of Global Switch pursuant to Clause
         3.1, Global Switch agrees that, in specifying the time-scale for any
         relocation of the Equipment, Global Switch shall use all reasonable
         endeavours to consult with the Tenant and to specify a time-scale that
         causes minimum disruption to the operation of the Equipment and Global
         Switch agrees that it shall not exercise the rights set out in Clause
         3.1 except for bona fide purposes connected to the good management of
         the Building.

4        INSPECTION

4.1      Global Switch may on not less than 5 Working Days' notice to the
         Tenant, except in emergency, enter the Location at any time with or
         without workmen and, if so reasonably required by the Tenant,
         accompanied by a representative of the Tenant to take a plan of and to
         view the state and condition of the Location and if any defects
         disrepair or unauthorised alterations are found for which the Tenant is
         liable the Tenant will within three months after written notice (or
         immediately in case of emergency) repair and make good the Location to
         Global Switch's reasonable satisfaction and in case of default Global
         Switch its agents or contractors may enter the Location to carry out
         all necessary works and the Tenant shall repay the costs of those works
         to Global Switch on demand.

                                       7
<PAGE>

4.2      In exercising the rights of entry granted by Clause 4.1 Global Switch
         will cause as little interference as is reasonably possible with the
         Equipment and will cause as little damage as possible to the Location
         and will promptly make good any damage caused to the Location to the
         Tenant's reasonable satisfaction.

5        Fees AND PAYMENT TERMS

5.1      The Tenant undertakes to pay Global Switch the Rent without deduction
         or set-off, such Rent to be payable in four equal instalments quarterly
         in advance on the Payment Dates, provided that the first instalment
         shall comprise an appropriate proportion of the Rent calculated with
         effect from the Commencement Date until the end of the then current
         quarter to be payable on the date of this Agreement.

5.2      The Tenant undertakes to pay Global Switch the Administration Fee
         within 10 Working Days of written demand.

5.3      The Rent shall upon each anniversary of the Commencement Date increase
         by 3%.

5.4      If any sum due under this Agreement is not paid within 5 Working Days
         of the due date then (without prejudice to Global Switch's other rights
         and remedies) Global Switch reserves the right to charge interest on
         such sum on a daily basis (after as well as before judgement) from the
         due date to the date of payment at the rate of 3% above the base rate
         from time to time of Lloyds TSB Bank plc or (if such base rate shall be
         unascertainable) of such other bank as Global Switch may nominate from
         time to time).

6        TENANT'S OBLIGATIONS

         The Tenant shall be responsible for the consequences of any use of the
         Equipment and agrees with Global Switch:

6.1      To keep the Location in good and substantial repair and condition and
         to the extent necessary to comply with such obligation reinstate
         rebuild or (where beyond economic repair) renew each part of it.

6.2      To maintain the Equipment in good working order in accordance with the
         manufacturers' guidelines for the use operation and maintenance of the
         same and to procure that the Location is kept tidy and safe at all
         times.

6.3      To comply with the requirements of Global Switch's reasonable technical
         and installation standards in respect of the Facility and Global
         Switch's reasonable electrical power management procedures and the
         Cable Management Guide as are notified to the Tenant in advance and in
         writing from time to time and ensure that (without limitation):

         (a)      no installation or modification alteration or addition to the
                  Equipment would result in increases to the floor loading or
                  environmental conditions of the Equipment above the levels
                  specified by Global Switch's technical and installation
                  standards in respect of the Facility;

         (b)      no overloading to the electrical power supply system occurs;
                  and

         (c)      the maximum heat output of the Equipment does not exceed the
                  Maximum Load;

                                       8
<PAGE>

         and the Customer shall supply to Global Switch a monthly report
         recording measured data summarising the electrical load to the
         electrical power supply system and the heat output of the Equipment;

6.4      To comply with the requirements of

         (a)      any statutes, regulations and codes of practice applicable to
                  the Facility or its use; and

         (b)      the reasonable health and safety instructions and such
                  reasonable rules and regulations issued in writing to the
                  Tenant by Global Switch from time to time in respect of the
                  Facility or its use.

6.5      Not to use the Location except for the retention and operation of the
         Equipment with ancillary office use nor cause any injury, damage or
         nuisance to or, interference with any person or property including
         (without limitation) the Facility and/or any equipment owned by third
         parties which may from time to time be located in the Facility.

6.6      Not actively to compete with the business of Global Switch carried out
         in and from the Meet-Me Room[s] nor solicit the custom or business of
         Global Switch's Tenants in the Meet-Me Room[s].

6.7      To comply with the reasonable directions of Global Switch in the event
         that interference occurs between the Equipment and the equipment of any
         third party in the Facility (where that interference is not caused by
         that third party) provided that Global Switch will use its reasonable
         endeavours to ensure that any such directions do not have an adverse
         effect on the Equipment.

6.8      Not to make:

         (a)      any structural alteration or addition whatsoever in on or to
                  the Location; or

         (b)      any non-structural alteration or addition whatsoever in on or
                  to the Location without the prior written consent of Global
                  Switch (such consent not to be unreasonably withheld or
                  delayed).

6.9      To maintain an up-to-date, complete and accurate inventory of the
         Equipment and continue to provide Global Switch with full and updated
         details of the inventory.

6.10     To ensure that the Equipment is clearly identified as belonging to the
         Tenant.

6.11     Subject to Clause 10.3 to indemnify Global Switch against all costs,
         claims, demands, losses, damages, expenses and liabilities of
         whatsoever nature (including without limitation reasonable legal fees)
         suffered or incurred (directly or indirectly) by Global Switch in
         connection with any claim that the use or possession of the Equipment
         or any computer programs used in connection with the Equipment
         infringes the intellectual property rights (including without
         limitation any patent, copyright, design right, registered design,
         trade mark or service mark) of any third party or causes interference
         with the equipment of any third party.

6.12     To be responsible for the payment directly to the relevant carriers or
         suppliers of all fees and charges payable in relation to the ordering
         and/or installation and/or rental and use of communications circuits
         from public telecommunications carriers or

                                       9
<PAGE>
         suppliers and in relation to the provision of maintenance and support
         services other than those provided by Global Switch as part of the
         Services.

6.13     To be responsible for the payment of all fees and charges levied for or
         in connection with the provision of an electrical supply to the
         Location which supply shall be separately metered and the fair
         proportion of the electricity used for the cooling of the Location but
         the Tenant's responsibility under this Clause 6.13 shall (for the
         avoidance of doubt) exclude the supply of electricity to the Common
         Areas the cost of which shall be included within the Rent provided that
         at no time shall the Tenant be charged by Global Switch a greater unit
         cost per kilowatt per hour for electricity than Global Switch is
         otherwise charged for the same plus a fixed annual administration fee
         of 5% per annum of that charge (the "ADMINISTRATION FEE").

6.14     To pay the rates and any other occupational taxes or charges levied by
         any authority due in respect of the Location unless that is included as
         one of the Services.

6.15     To pay on demand a fair proportion of the cost of maintaining an
         uninterruptible power supply system for the Location (which proportion
         shall be (pound)3,626 for the first year of the Term).

6.16     At the end of the Term or on the earlier termination of this Agreement,
         to remove the Equipment from the Location and to make good to Global
         Switch's reasonable satisfaction any resultant damage (which, to avoid
         doubt, includes the replacement of floor tiles which have been cut to
         accommodate the installation of the Equipment) and on demand to pay any
         and all reasonable costs incurred by Global Switch arising from the
         disconnection and removal of the Equipment.

7        PROVISION OF SERVICES

7.1      Subject to the other provisions of this Agreement and the Tenant paying
         the Rent Global Switch hereby agrees with the Tenant to provide the
         Services to the Tenant in accordance with this Clause 7, together with
         such other additional services requested by the Tenant that Global
         Switch agrees (at an additional cost to the Tenant) in writing to
         provide.

7.2      Global Switch warrants and undertakes to the Tenant that it shall
         perform the Services with reasonable care and skill in a proper and
         efficient manner using (where appropriate) suitable materials and
         competent staff and in accordance with this Agreement and (where the
         Specification prescribes a level of performance to be achieved by the
         Services) the Specification but Global Switch does not warrant or
         undertake that the Services will cause the Equipment to operate without
         fault or interruption save that in carrying out the Services or any
         other works to the Facility Global Switch will use its reasonable
         endeavours not to interfere with the Equipment.

7.3      Global Switch will use its reasonable endeavours to minimise any
         disruption to or interruption in the Services.

7.4      Subject to Clause 7.2, all other conditions, warranties, terms and
         undertakings (whether express or implied, statutory or otherwise)
         relating to the delivery, performance, quality, occurrence or
         reliability of the Equipment or the Services are hereby excluded to the
         fullest extent permitted by law.

7.5      (Without prejudice to any other remedy or right of claim on the part of
         the Tenant pursuant to this Agreement) except where the same is due to
         any act omission or

                                       10
<PAGE>

         default by the Tenant, if a Qualifying Outage occurs:

         (a)      for a period up to (and including) three (3) hours (from the
                  time of the occurrence of the Qualifying Outage), then the
                  Tenant will receive a credit against the Rent of ONE THOUSAND
                  FIVE HUNDRED POUNDS ((pound)1,500);

         (b)      for a period between three (3) hours and six (6) hours (from
                  the time of the occurrence of the Qualifying Outage), then the
                  Tenant will receive (in addition to any amounts under clause
                  7.5(a)) a credit against the Rent of TWO THOUSAND FIVE HUNDRED
                  POUNDS ((pound)2,500);

         (c)      for a period between six (6) hours and twenty-four (24) hours
                  (from the time of the occurrence of the Qualifying Outage),
                  then the Tenant will receive (in addition to any amounts under
                  clauses 7.4(a) and (b)) a credit against the Rent of FOUR
                  THOUSAND FIVE HUNDRED POUNDS ((pound)4,500);

         (d)      for each subsequent period of twenty-four (24) hours, then the
                  Tenant will receive (in addition to any amounts under clauses
                  7.5(a), (b) and (c)) a credit against the Rent of EIGHT
                  THOUSAND POUNDS ((pound)8,000)

         but Global Switch shall not be required to allow such credits in
         respect of more than four (4) Qualifying Outages (in respect of which
         credits have been given on each of four (4) occasions pursuant to
         clause 7.4) in any one period of thirty (30) days during the term of
         this Agreement and any such credits shall be set off against the Rent
         or other amounts due from Customer for the next following Payment Date
         (or such longer period if appropriate) or, if no such sums are due,
         such credit shall be paid by Global Switch to the Customer within
         fourteen (14) days of the expiry or earlier determination of the term
         of this Agreement.

8        SERVICE INTERRUPTION NOTIFICATION AND CORRECTION PROCEDURE

8.1      Immediately on becoming aware of a Service Interruption the Tenant
         shall contact Global Switch and shall in each case provide the
         appropriate information by submitting a completed incident report in
         the form attached to this Agreement

8.2      Following notification in accordance with Clause 8.1 or after becoming
         aware from another source of a Service Interruption (including
         awareness based on monitoring of building control systems within the
         Facility) Global Switch shall (in the case of any Service Interruption
         save for the unavailability of a Service):

         (a)      specify to the Tenant an estimated time scale for resumption
                  of the Service;

         (b)      use its reasonable endeavours to remedy the Service
                  Interruption as soon as practicable; and

         (c)      update the Tenant as necessary until the provision of the
                  Service is resumed.

8.3      The Tenant shall allow Global Switch free access to the Location at all
         times for so long as the Service Interruption persists in order to
         inspect and/or test the service and carry out any remedial works but
         only where is would otherwise be impracticable to inspect and/or test
         the service and carry out any remedial works without such entry and in
         exercising the rights of entry granted by this Clause 8.3 Global Switch
         will cause as little interference as is reasonably possible with the
         Equipment and will make good any damage caused to the Location to the
         Tenant's reasonable satisfaction.

                                       11
<PAGE>

9        PLANNED WORK NOTIFICATION PROCEDURE

9.1      The Tenant acknowledges that Global Switch will from time to time carry
         out routine work that will affect the provision of the Services. The
         parties agree that provided Global Switch complies with the procedure
         set out in Clause 9.2, any disruption to the provision of the Services
         by such routine work shall not constitute Service Interruption.

9.2      Global Switch shall give the Tenant at least 10 Working Days' notice in
         writing in advance with details of the nature of the routine work to be
         carried out, the likely disruption to the Services, the dates and times
         for carrying out such work and an estimated time scale for completing
         it.

9.3      Global Switch shall consult with and have due regard to any reasonable
         suggestions put forward by the Tenant to minimise any inconvenience and
         disruption to the Tenant which may be caused by such routine work.

9.4      Global Switch shall use its reasonable endeavours to ensure that the
         carrying out of routine work causes as little inconvenience and
         disruption to the Tenant as is practicable in the circumstances.

10       LIMITATION OF LIABILITY

10.1     Save as provided by statute the following provisions set out the entire
         liability of the parties (including any liability for the acts and
         omissions of its employees, agents and sub-contractors) to each other
         arising as a result of any breach of its obligations under this
         Agreement.

10.2     Neither party (the "FIRST PARTY") shall be liable to the other (the
         "SECOND PARTY") for loss of profits, contracts or goodwill or any type
         of economic, indirect, consequential or special loss or damage
         (including loss or damage suffered by the Tenant as a result of an
         action brought by a third party) even if such loss was reasonably
         foreseeable. Subject to Clause 10.3, the First Party shall be liable to
         the Second Party for direct loss or damage incurred by the Second
         Party.

10.3     Subject to Clause 10.2, the entire liability of a party to the other
         party under this Agreement in any period of 12 months during the Term
         shall not exceed (pound)150,000.

11       INSURANCE

11.1     The Equipment shall at all times be at the Tenant's entire risk and the
         Tenant shall be responsible for insuring the Equipment against all
         risks (including without limitation, consequential loss and loss of
         profits cover) as may be appropriate, taking into account the
         provisions of Clause 10.

11.2     If the Location is unfit for occupation and use because of damage by an
         Insured Risk then (save to the extent that the payment of the loss of
         rent insurance moneys is refused due to the act or default of the
         Tenant) the Rent (or a fair proportion according to the nature and
         extent of the damage) shall be suspended until the date on which the
         Location is again fit for occupation and use and in the event that the
         Location shall not be rendered fit for occupation and use within three
         years of the date of such damage then either party may while the
         Location has not been rendered fit for occupation and use terminate
         this Agreement by giving to the other prior written

                                       12
<PAGE>

         notice and such termination shall be without prejudice to any claim in
         respect of any prior breach of the obligations contained in this
         Agreement.

12       DURATION AND TERMINATION

12.1     This Agreement shall automatically terminate on the expiry of the Term
         or (if earlier) by operation of this Clause 12.

12.2     Global Switch may immediately terminate this Agreement without payment
         of compensation or other damages caused to the Tenant solely by such
         termination by giving notice in writing to the Tenant if any one or
         more of the following events happens:

         (a)      the Tenant commits a material breach of any of its obligations
                  under this Agreement which is incapable of remedy;

         (b)      the Tenant fails to remedy, where it is capable of remedy, any
                  breach of its obligations under this Agreement (save as to
                  payment) within a reasonable period (having regard to the
                  nature of the breach) after having been required in writing to
                  remedy or desist from such breach;

         (c)      if any sum payable under this Agreement is not paid within
                  seven days of its due date for payment in accordance with this
                  Agreement;

         (d)      the Tenant is deemed to be unable to pay its debts within the
                  meaning of Section 123 of the Insolvency Act 1986, or calls a
                  meeting for the purpose of passing a resolution to wind it up,
                  or such a resolution is passed, or a resolution is passed by
                  the directors of the Tenant to seek a winding up or
                  administration order, or the Tenant presents, or has
                  presented, a petition for a winding up order, or presents, or
                  has presented, a petition to appoint an administrator, or has
                  an administrative receiver, or receiver appointed over all or
                  any part of its business, undertaking, property or assets.

12.3     In the event that there are more than four (4) Qualifying Outages in
         any one period of thirty (30) days during the term of this Agreement
         the Customer may terminate this Agreement by notice in writing to
         Global Switch.

12.4     Termination of this Agreement shall be without prejudice to the other
         rights and remedies of either party both under this Agreement and at
         law.

12.5     Forthwith upon the termination of this Agreement or the expiry of the
         Term, any right to use the Equipment in the Location (or elsewhere in
         the Facility) in the shall automatically cease and the Tenant shall
         make arrangements (at the Tenant's own cost) to promptly remove the
         Equipment from the Facility at a time to be agreed with Global Switch
         such time to be no later than 10 Working Days following the date of
         such termination or expiration and on demand pay any and all reasonable
         costs incurred by Global Switch arising directly or indirectly from the
         disconnection and removal of the Equipment.

13       CONFIDENTIALITY

13.1     Each party shall keep and procure to be kept secret and confidential
         all information belonging to the other party disclosed or obtained as a
         result of the relationship of the parties under this Agreement and
         shall not use nor disclose the same save for the

                                       13
<PAGE>
         purposes of the proper performance of this Agreement or to the party's
         financiers for the purpose of raising finance or with the prior written
         consent of the other party.

13.2     Neither party shall disclose the contents of this Agreement to any
         third party without the other party's prior written consent (such
         consent not to be unreasonably withheld or delayed).

14       FORCE MAJEURE

14.1     If either party is affected by Force Majeure it shall immediately
         notify the other party in writing of the matters constituting the Force
         Majeure and shall keep that party fully informed of their continuance
         and of any relevant change of circumstances whilst such Force Majeure
         continues.

14.2     The party affected by Force Majeure shall take all reasonable steps
         available to it to minimise the effects of Force Majeure on the
         performance of its obligations under this Agreement.

15       ASSIGNMENT AND SUB-CONTRACTORS

15.1     The Tenant shall not be entitled to assign, transfer or otherwise
         dispose of the Location in whole or in part or to assign, transfer or
         otherwise dispose of any of its rights under this Agreement except as
         permitted by this Clause 15;

15.2     The Tenant may:

         (a)      assign or transfer this Agreement in whole to a Group Company;
                  or

         (b)      share or part with the possession or occupation of the whole
                  or any part of the Location with a Group Company provided that
                  the occupation by a Group Company shall cease upon it ceasing
                  to be a Group Company;

         (c)      grant rights to use parts of the Location or the Equipment to
                  third parties, provided that:

                  (i)      such third parties will use the Location or the
                           Equipment in respect of which rights are granted to
                           it in accordance with the terms of this Agreement
                           (except for the payment of the Service Fee and other
                           obligations inapplicable to the part of the Location
                           in respect of which rights are granted to it);

                  (ii)     such third parties will comply with all security,
                           health and safety regulations from time to time
                           applicable to the Facility;

                  but the Tenant will remain liable to Tenant under the terms of
                  this Agreement for the observance and performance of its
                  obligations under this Agreement and the Tenant shall take all
                  reasonable and lawful steps and proceedings to remedy any
                  breach of the obligations of its tenants.

15.3     Global Switch shall be entitled to engage sub-contractors to carry out
         all or any of the Services, but Global Switch shall remain liable to
         the Tenant under the terms of this Agreement for the provision of any
         Services by its sub-contractors.

                                       14
<PAGE>

16       GENERAL

16.1     This Agreement contains the entire agreement and understanding between
         the parties in relation to their subject-matter.

16.2     If at any time any part of this Agreement (including any one or more of
         the clauses of this Agreement or any sub-clause or paragraph or any
         part of one or more of these clauses) is held to be or becomes void or
         otherwise unenforceable for any reason under any applicable law, the
         same shall be deemed omitted from this Agreement and the validity
         and/or enforceability of the remaining provisions of this Agreement
         shall not in any way be affected or impaired as a result of that
         omission.

17       PROPER LAW AND JURISDICTION

17.1     This Agreement and any disputes arising out of or in relation to this
         Agreement shall be governed by and construed in accordance with English
         law. The parties agree to submit to the exclusive jurisdiction of the
         English Courts. If the Tenant shall be incorporated or registered
         outside England and Wales its address stated in the Particulars shall
         be its address for service for the purpose of proceedings brought in
         the English Courts.

17.2     The Guarantor irrevocably authorises and appoints Bridgehouse Partners
         LLP of Albermarle House, 1 Albermarle Street, London W1S 4HA (or such
         other firm of solicitors in England or Wales as it may from time to
         time by written notice to Global Switch substitute), to accept service
         for the purpose of proceedings brought in the English Courts and
         service on Bridgehouse Partners LLP (or such substitute) shall be
         deemed to be service on the Guarantor.

18       NOTICES

18.1     Any notice required or authorised by this Agreement must be in writing.

18.2     Giving a notice or delivering a document to the Tenant's lawyer has the
         same effect as giving or delivering it to the Tenant.

18.3     Transmission by fax is a valid means of giving a notice or delivering a
         document where delivery of the original document is not essential.

18.4     Subject to Clauses 18.5 and 18.6, a notice is given and a document
         delivered when it is received.

18.5     If a notice or document is received after 4 pm on a working day, or on
         a day that is not a working day, it is to be treated as having been
         received on the next working day.

18.6     Unless the actual time of receipt is proved, a notice or document sent
         by the following means is to be treated as having been received before
         4 pm on the day shown below:

         (a)      by first class post: 2 working days after posting;

         (b)      by second class post: 3 working days after posting;

19       GUARANTOR'S OBLIGATIONS

19.1     The Guarantor covenants with Global Switch including (without the need
         for any express assignment) its successors in title that at all times
         during the Term and

                                       15
<PAGE>

         notwithstanding any disclaimer of this Agreement the Rent and all other
         sums payable pursuant to this Agreement will be punctually paid and the
         obligations and other terms on the Tenant's part contained in this
         Agreement will be performed and observed and if at any time during the
         Term there is a default in the payment of Rent or in observance and
         performance of any obligations or terms in respect of which default has
         occurred the Guarantor will pay the Rent and observe or perform the
         obligations or terms in respect of which such default has occurred and
         will make good to Global Switch on demand and will indemnify Global
         Switch against all losses damage costs and expenses arising or incurred
         by Global Switch as a result of such non-payment non-performance or
         non-observance.

19.2     The liability of the Guarantor will not in any way be released lessened
         or affected by:

         (a)      any time or indulgence granted by Global Switch to the Tenant
                  or any neglect or forbearance of Global Switch in enforcing
                  the payment of the Rent or the observance or performance of
                  the covenants or other terms of this Agreement;

         (b)      any variation of the terms of the Agreement by agreement
                  between Global Switch and the Tenant.

19.3     If at any time during the Term the Tenant (being an individual) becomes
         bankrupt or (being a company) enters into liquidation and the trustee
         in bankruptcy or liquidator disclaims this Agreement then if so
         required by written notice given by Global Switch within three months
         after such disclaimer the Guarantor or a company which the Guarantor
         shall nominate being a company of at least equivalent financial
         standing to the Guarantor as at the date of this Agreement and which
         Global Switch shall approve (acting reasonably) will enter into a new
         agreement with Global Switch subject to any interest affecting the
         Location for a term equal to the residue of the Term which would have
         remained had there been no disclaimer for the same Service Fee as that
         which would otherwise have then been payable under this Agreement and
         subject to the same covenants provisions and conditions in all respects
         as those contained in this Agreement such new agreement to take effect
         from the date of disclaimer.

19.4     If Global Switch so requires the new agreement will contain an express
         obligation (in addition to all other obligations and provisions as
         mentioned and specified above) by the Guarantor (as Tenant) immediately
         to carry out and complete at its own expense all works (whether of
         repair decoration or otherwise) for which the Tenant would have then
         been liable at the date of the grant of the new agreement under the
         obligations provisions and conditions of this Agreement if the Location
         had at that date been in its actual state and condition.

19.5     In any such case the Guarantor shall pay the proper and reasonable
         costs of negotiating, documenting and executing the new agreement.

19.6     If this Agreement is disclaimed and for any reason Global Switch does
         not require the Guarantor to accept a new agreement in accordance with
         the above provisions the Guarantor will pay to Global Switch on demand
         an amount equal to the Service Fee and all other sums payable pursuant
         to this Agreement for the period commencing on the date of the
         disclaimer and ending on the date six months after the disclaimer.

19.7     It is agreed and declared that the liability of the Guarantor is as
         principal covenantor with Global Switch and not merely collateral to
         the principal liability of the Tenant.

                                       16
<PAGE>

20       CONTRACTS (RIGHTS OF THIRD PARTIES) ACT 1999

         Unless the right of enforcement is expressly granted, it is not
         intended that a third party should have the right to enforce any
         provision of this Agreement under the Contracts (Rights of Third
         Parties) Act 1999.

21       UPGRADE WORKS

21.1     Global Switch may enter the Location and carry out the works (which are
         set out on the attached scope of works) within the Location to divide
         the Location from other parts of the Facility (the "UPGRADE") and
         Clause 9 shall apply to the Upgrade.

21.2     Prior to commencing work Global Switch will notify the Tenant in
         writing and on an open-book basis of the estimated costs of the
         Upgrade.

21.3     Subject to clause 21.4 the Tenant shall pay to Global Switch on demand
         all reasonable costs actually incurred by Global Switch in carrying out
         the Upgrade.

21.4     The costs payable by the Tenant under clause 21.3 shall not exceed

         (pound)17,000+ ((pound)17,000 x BI)

         where BI is the percentage increase (if any) in the Building Index
         between the date of this Agreement and that date upon which the Upgrade
         is completed.

22       SECTIONS 24-28 LANDLORD AND TENANT ACT 1954

         Having been authorised so to do so to do by an Order of the
         Kingston-upon-Thames County Court made on the  _____________ 2003
         pursuant to section 38(4) Landlord and Tenant Act 1954 Global Switch
         and the Tenant agree that the provisions of sections 24-28 (inclusive)
         of that Act are excluded in relation to this Agreement.

AS WITNESS their acceptance of the terms and conditions set out in this
Agreement the parties have executed this Agreement as a deed on the date set out
in the Particulars.

                                       17
<PAGE>

                                    SCHEDULE

                                   (SERVICES)

1        Save to the extent that such maintenance is either the Tenant's
         responsibility under Clause 6.1 of this Agreement or required due to
         damage caused by the Tenant, the maintenance and repair of the
         structure of the Facility and all parts of the Facility to include
         maintaining, repairing, renewal and replacement (where necessary),
         cleaning and redecorating the exterior structure, foundations, all
         walls, the roof, the structure, foundations, all walls, the roof, the
         structural slabs of the ceilings and floors, any party walls,
         structures and boundaries which form part of the Facility, and the
         means of vehicular and pedestrian access thereto is maintained repaired
         and (where necessary) renewed, the Common Areas, all service media and
         all plant and equipment serving the Facility.

2        Provision of access at all times throughout the year for visiting
         public telecommunications carrier staff for the installation and
         testing of lines.

3        Provision of access at all times throughout the year for visiting
         maintenance staff from any authorised maintenance organisation.

4        Provision of access at all times throughout the year for visiting
         Tenant staff.

5        Liaising with the Tenant over equipment installations by suppliers or
         public telecommunications carriers, or maintenance visits by any
         authorised maintainer.

6        At all times throughout the year ordering on behalf of the Tenant
         communications circuits from public telecommunications carriers on
         instruction from and as authorised by the Tenant.

7        In relation to the Common Areas:

7.1      the cleaning, repair, maintenance, decoration, replacement and renewal
         (where necessary) of the Common Areas and all relevant external areas
         of the Facility;

7.2      the maintenance, repair and renewal of electrical plant and equipment;

7.3      the provision of lighting;

7.4      the provision of heating;

7.5      the provision of air conditioning in the reception/lobby area;

7.6      the provision of hot and cold running water;

7.7      the repair, maintenance, renewal and operation of such fire prevention,
         fire fighting and fire alarm equipment and signs as may be required by
         any fire or other authority, or as required by Global Switch's
         insurers;

7.8      the provision and, where necessary, renewal of refuse bins and the
         operation of a refuse collection service for the Facility;

7.9      the provision of separate meters to monitor and record the supply of
         the utilities to the Common Areas;

                                       18
<PAGE>

7.10     the payment of all existing and future rates payable in respect of the
         car parking spaces referred to in Clause 2.1(b) together with any
         internal and external plant compounds/buildings and all Common Areas;

7.11     carpeting, decorating, furnishing and equipping the Facility to a high
         quality (to be reasonably agreed with the Tenant), (which shall include
         the provision of such services to the main entrance halls and lobby
         areas of the Facility);

7.12     the provision of a suitably qualified receptionist in the common
         reception areas during normal working hours and the provision of at
         least one security guard to carry out the receptionist's duties at the
         reception at all other times

7.13     the provision of appropriate switchboard facilities at all times
         throughout the year.

8

8.1      Insuring:

         (a)      the Facility; and

         (b)      against the public liability of Global Switch in respect of
                  claims in connection with or in any way arising out of the use
                  by the Tenant of the Facility;

8.2      Where the Facility is damaged by a risk against which Global Switch has
         insured laying out the net proceeds of such insurance in respect of
         such damage (other than in respect of loss of service fee income) in
         remedying the damage and reinstating the Facility.

9        The provision from the date of this Agreement at all times of suitable
         beverage and food vending machines and appropriate preparation areas
         (to include microwave ovens).

10       The provision, repair, maintenance, replacement and renewal (if
         necessary) of flood lighting and of any plants, shrubs, trees, garden
         or other landscaped areas in the Common Areas.

11       The provision, furnishing, servicing, cleaning, maintaining and (where
         necessary) renewing a suitable conference room, audio visual facility
         for the use of the occupiers of the Facility of such size.

12       The provision, maintenance, repair and (where necessary) replacement of
         sign boards located in the common entrance areas.

13       The provision, repair, maintenance and (where necessary) renewal or
         replacement of the car parking spaces referred to in Clause 2.l(b).

14       The maintenance, repair, renewal (where necessary) and cleaning (where
         necessary) of the Facility's security equipment.

15       The provision of a suitable number of security personnel to patrol the
         site on a regular basis and monitor the security equipment
         installations at all times throughout the year. In addition, the
         following provisions will be made:

15.1     the maintenance of a rolling archive of 1 month's events as recorded by
         the CCTV equipment. The recordings will be stored for review when
         required;

                                       19
<PAGE>

15.2     fax/e-mail equipment to enable the Tenant to communicate access
         requirements;

15.3     the supply of proximity reader cards for the Tenant's staff, Tenant's
         contractors and agents.

16       Supervision of equipment and checking of all fire alarms, facility
         management and security systems.

17       Establishing procedures for fault notification and logging, including
         points of contact with the Tenant, escalation procedures and
         notification of clears.

18       The provision of a building manager ("THE FACILITY MANAGER") to oversee
         the services outlined in this Services List and act as the principal
         point of contact for the Tenant in respect of the Tenant's requirements
         as to reporting faults to the Facility Manager and the Facility Manager
         reporting faults to Global Switch and the Tenant. The Facility Manager
         will be located on site during normal working hours with emergency call
         out availability at any time when not present on site at all times
         throughout the year.

19       The provision to the Location of the following:

19.1     continuous electrical power supply from either a mains or a generator
         source;

19.2     tempered fresh air from air main plant handling units;

19.3     chilled water from the chilled water based cooling system;

19.4     keeping active, powers and ready for use the system for the extraction
         of smoke and suppressant gas from the Location;

19.5     keeping active, powered and ready for use the stand by generators;

19.6     operation of the building management system as necessary in support of
         the services and the provision of a data link to allow monitoring (but
         not operation) of the building management system by the Tenant.

                                       20
<PAGE>

                                INCIDENT REPORT

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To: Building Manager

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Tenant:

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Location:

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Date of Service Interruption:

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Time of Service Interruption:

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Nature of Service Interruption:

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Signed for and on behalf of the Tenant
                                            ..............................
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               BELOW THIS LINE FOR GLOBAL SWITCH INTERNAL USE ONLY
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Date and time of receipt of Incident Report:

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Action taken:

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Date and time full Service resumed:

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Signed:
                                            ..............................
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                                       21

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00061-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00061-of-00352.parquet"}]]